Is it smart to borrow for fix-up projects?
Dear Dave,
My husband likes to borrow money on small fix-up projects around the house, saying he knows how to manage money and that he?ll pay off the loans quickly. The other day, he came to me for money to make the payment on the latest loan he took out to re-wire the garage. Then, he started fussing at me when I didn?t have the money to make the payment. It?s not the first time this sort of thing has happened, and I?m tired of it. How can I make it stop?
? Crystal
Dear Crystal,
This guy needs a swift kick in his rear end! He says he knows how to manage money, but he doesn?t know how to save up to re-wire the garage?
It sounds to me like you?ve got a big, spoiled teenager on your hands instead of a husband. It?s bad enough that he can?t take care of his own responsibilities, but then he turns around and cries when you won?t do it for him. This is bogus!
Marriage is all about unity. Once the rings go on those fingers it?s a WE thing, not a ME thing. Husbands and wives must work together to form a game plan that will help them win in life, and that includes finances.
Crystal, I think you should take the money he?s asking for and use it to see a good marriage counselor. There are some deep issues here. You guys need to deal with them and create a real marriage before this situation gets any worse.
? Dave
Dear Dave,
Some close friends of ours filed Chapter 13 bankruptcy a few years ago. They paid everything in February, but the trustee refuses to close the case. Can the trustee do this, and if so, why would it happen when they?ve paid everything off?
? Chris
Dear Chris,
These folks need to go directly to the trustee and ask point blank why their case hasn?t been closed. I know several Chapter 13 trustees, and for the most part they?re not unreasonable people.
They DO have very strict laws they must abide by, though. It could be something simple like paperwork that needs to be signed. The bankruptcy court in their area might even require a voluntary dismissal on their part before the trustee can close the case.
In that event, the next move is theirs ? not the trustee?s!
? Dave
Dear Dave,
I just retired from the military, my wife works full-time and we?re seeking better mutual funds. Can I transfer my poor-performing Roth IRA mutual to another institution without incurring a penalty? Also, which mutual funds do you recommend for Roth IRAs?
??Dan
Dear Dan,
Yes, you can. It?s called an IRA rollover. By doing this, you can roll from Roth to Roth or from mutual fund to mutual fund without taxes or penalties.
I never recommend specific mutual funds. I go with good growth stock mutual funds that have been open for five years or longer. If you can find some with solid 10- to 20-year track records of success, that?s even better.
Spread one-fourth of your investment over each of these four categories ? growth, growth and income, aggressive growth and international. Then sit on them. Mutual funds are not for short-term investing, so what I?m talking about here is crock-pot cooking, not a microwave approach.
The only way to beat the market is by staying in it for the long haul!
– Dave