Andrea Said:

30 year mortgage or 40 year mortgage with extra principal payments?

We Answered:

My calculator says that if you borrow $200,000 @7% for a 40 year amortization, your payments are going to be $1,246. If you borrow $200,000 at 6% for 30 years, the payments are $1,194, It does not pay to increase the ength of your mortgage unless your payments become smaller. You have just formed a new family. Get your CPA (you may not pass all the parts the first time). Meanwhile you may decide that you do not like your present employer. Settle down, let the real estate market settle down (especially the California market), and then decide on what you are going to do. Oh yes, do the calculations. Do not believe what anyone tells you unless you have verified the numbers.

Alfred Said:

best way to invest before college?

We Answered:

You can buy a money market account with $1,100, but the problem will be finding one that will yield more than 4%.

Ally bank was the highest yield I found on an account. 2% APY on bank CDs.

Larry Said:

How much should we be saving for retirement?

We Answered:

The amount you need to have accumulated at retirement is dependent on how much you'll need to live on in retirement, plus factors like estimated return, estimated tax bracket and estimated life span.

Most retirement calculators either (a) ask you what to use for "needed income", or (b) assume that if you are living on $X income now, you'll need 85% (or 90%, or whatever) percent of that income to live on in retirement. Hopefully they'll spell out how that "needed income" is derived somewhere in the tool documentation or help.

So the income requirement will be for all people who are currently living on the income that is put into the calculator, in almost all cases. (I.e., you very probably don't need to double it.)

Since the vast majority of people are saving too little for retirement, you are to be congratulated if you really are saving too much. But that doesn't necessarily mean you should cut back on saving -- it will give you more of a cushion for unexpected events (sickness, layoffs, etc.) and enable you to have a trouble-free, worry-free retirement. And that's a goal worth pursuing.

If you continue saving at your rate, it does mean that if you hit a stretch where expenses rise or income falls, you could more easily think about temporarily suspending retirement savings, as in your mention of children going to college.

Congratulations.

Paul Said:

Savings account interest rate. am i getting jobbed???

We Answered:

interest rates on savings accounts are dropping; it's not that B of A is intentionally shafting you

you heard about the Fed's cutting rates right? folks get happy right? well those Fed cuts are cutting into the interest rate on your savings accounts

That's for ALL banks. I work at a bank and i HAD a savings accounts that had a interest rate of 3.75% and now its only 1.25% and steady dropping

Go to ingdirect.com; they have a great savings interest

Thelma Said:

Need ideas with debt and savings?

We Answered:

I would definately get rid of that debt before applying for a car loan. Having some debt wouldn't stop you from getting a loan, but having CC payments in addition to a car payment and rent can be difficult for a young person just starting out. You don't have too much debt, so take advantage of that and get rid of it and don't build it up again. Keep just ONE card, for emergencies only, throw the others away. See if any of your cards would allow you to transfer debt from the other cards to them with a low interest rate, and make that transfer if you can. Interest is everything. I would also suggest you buy a very inexpensive car, as you simply don't make enough to try to afford a large payment. You may be able to DO it, but you don't want to work just to pay for a car. Don't get any of the add ons, no rustproofing, no extended warranty. You'll also want to put at least $1000 down payment on that. Get rid of the 23% first. You will probably also need 1st and last months rent as a security deposit. You are in a good position in that you can control your situation rather than your situation controlling you. You don't just have to do this within six months, you can do it when you have your finances completely under control. So don't let the 6 months concept force you into an uncomfortable financial situation. Almost all young people make the mistake of piling up credit card debt and if you can avoid that, using them only for emergencies and things you plan to and can pay off each month, you will have a HUGE leg up on you financial future. In about a year, get started on a ROTH IRA so you have money as a geezer. So I don't think it's so much an issue of distribution, it's more a matter of doing this in a controlled, orderly way and not forcing an artificial 6 month window to dictate your decisions.

Erin Said:

I think I have ADD? I don't know what to do?

We Answered:

The first thing you need to do is sit down in a quiet place and take some deep breaths. This internal dialogue you are having with yourself is only feeding the situation. Just because your mother is experiencing this, that doesn't mean you are too. You have convinced yourself that you are following in her footsteps and this is feeding your actions. You need to slow down and concentrate on your surroundings and ground yourself so that you are able to be a good listener. Being a good listener leads to appropriate actions. The reason you have low self-esteem is because you believe what you are telling yourself. You anticipate the outcome to the point that you make it happen. Form often follows thought, so you need to change your internal dialogue. Sometimes when we are overwhelmed we tend to be in a 'fog' and forget even the simplest of tasks and trip over our words etc. The past is history, don't let it interfere with your present. The bottom line, stay calm, change your internal dialogue and don't compare yourself to anyone. Be a good listener and hopefully you will soon be your old self again. Good luck! :)

Heather Said:

HELP me with 2 MATH PROBLEMS, MY SCIENTIFIC CALCULATOR IS BUSTED!!?

We Answered:

Your computer already has a calculator (windows), go to you start menu, an it should be in the accessories folder, then click on view, choose scientific. Hopefully this helps!