dave says1KENTUCKY (8/24/14) — This week Dave discusses will the government take it, if you should sell the rental and reinvest, and settling with Sallie Mae.

Dear Dave,

I have a 5-year-old daughter, and I want to start a 529 for her. However, I’m concerned that the government might seize the 529 assets in order to pay off debt and give people treasury bonds instead. Do you think this might happen?

Barry

Dear Barry,

I think there’s less than a one percent chance they’d seize the actual assets. Really, I don’t believe they’re any more likely to come take investments away than they are to come take your home. I mean, we’re really talking about private property here. If you have $100,000 in a retirement fund, and they say they’re going to take that away from you, it’s like taking a person’s home. I just don’t see that happening.

The big question, I think, is this: Are they likely to take away some of the tax benefits — like the 529 plan’s ability to grow tax-free? As in, they just come in and say they’re making it all taxable to pay the bills they’ve accumulated up in Washington, D.C. from all their stupid behavior. That kind of thing actually could happen.

—Dave

Dear Dave,

I’m retired, and my husband plans to work for several more years. We have $130,000 in savings accounts, plus a rental property. The rental property has a $150,000 mortgage, but we have no other debt. Should we sell the rental and reinvest in the stock market?

Barbara

Dear Barbara,

If I were in your shoes, I’d be investing in mutual funds and paying off the rental property as fast as possible. That would be my game plan.

When it comes to mutual funds, you shouldn’t be jumping in and out. The key is to find good ones with long track records of success and stability. Then, leave the money alone for several years and let it do its thing.

—Dave


Dear Dave,

Is it possible to settle the debt on a student loan?

James

Dear James,

Sallie Mae student loans, or federally insured student loans, are insured by the government. Translation, the bank is going to still get paid 100 percent by the taxpayers, because the government is guaranteeing the loan. They have no reason to settle with you.

They’re not going to settle with you on the principal amount or the interest, James. You might be able to talk them down on the collection fees. They jack those way up. But the original amount you borrow, plus the actual interest that hasn’t been paid, is guaranteed by the government. They’ll get it from one of you.

—Dave

Dave Ramsey is America’s trusted voice on money and business. He has authored five New York Times best-selling books: "Financial Peace, More Than Enough," "The Total Money Makeover," "EntreLeadership and Smart Money Smart Kids." The Dave Ramsey Show is heard by more than 8 million listeners each week on more than 500 radio stations. Follow Dave on Twitter at @DaveRamsey and on the web at daveramsey.com.

Disclaimer: The content supplied by columnists and letters to the Editor on this site does not in any way, shape or form, implied or otherwise, necessarily express or suggest endorsement or support of any of such content, statement, or opinions therein. SurfKY News does not necessarily adhere to or endorse content provided by outside non-staff sources.

LIKE SurfKY on Facebook - Click here to LIKE us now.

© Copyright 2015 SurfKY News Group, Inc. All rights reserved. This material may not be published, broadcast, or rewritten without permission. SurfKY News encourages you to share this story on social media.

In Other News...

Limited Number of Tickets for Empty Bowls, Owensboro on Sale Now

OWENSBORO, Ky. (3/29/15) — Tickets are now on sale for the annual Empty Bowls of Owensboro, Ky., fundraiser. This… Read More

Covenant Community Church Hosts Annual Eggstravaganza

MADISONVILLE, Ky. (03/29/2015) — A fire truck siren sounded Saturday at the Madisonville City Park, but not because… Read More

Most Read This Week

March 27, 2015 5628

Three Arrested during Execution of Search…

by Madisonville Police Department/Hopkins County Detention Center
March 25, 2015 5301

Fazoli's, Roses Coming to Madisonville

by Amber Averitt, SurfKY News
March 24, 2015 5099

One Dies, Another Injured in Mortons Gap Traffic…

by Deputy Heath Owens
March 25, 2015 5029

Grand Jury Finds No Criminal Wrongdoing in Bean…

by Doreen Dennis, SurfKY News
March 24, 2015 4212

UPDATE: One Injured in Hopkinsville Road Accident

by Doreen Dennis, SurfKY News
March 25, 2015 3997

Madisonville Man's Living Room Leap Lands Him in…

by Madisonville Police Department / Hopkins County Detention Center

Most Read This Month

March 09, 2015 13529

Multi-Agency Drug Bust Results in $1 Million Meth…

by KSP DESI
March 02, 2015 11565

Madisonville Teen Faces Numerous Drug Charges

by Madisonville Police Department/Hopkins County Detention Center

Stories Trending Today

March 28, 2015 2612

Young Child Dies in Princeton Fire

by Chris Rogers, KSP
March 28, 2015 1657

Tractor Trailer Takes Out Guardrail on I-69,…

by Doreen Dennis, SurfKY News
March 28, 2015 1368

VIDEO: Shoe Charity Expands to 'Sweet Sixteen'…

by Gary Gates, SurfKY News
March 28, 2015 1171

Commission Hears More Proposals for Subdividing…

by Tammy Holloway, SurfKY News
March 28, 2015 970

Independence Bank Scholarship Reception Held…

by Lynnsie Fulkerson
March 27, 2015 882

KSP Charges Jefferson County Man with Possession…

by Kentucky State Police
March 27, 2015 834

Alltech Brewing and Distilling Academy Launches…

by Danielle Palmer
March 27, 2015 745

It's Not Too Late to Get a Flu Shot

by Beth Fisher
March 28, 2015 727

Four Roses to Build Bottling Facility in Bullitt…

by Office of the Governor
March 28, 2015 705

Happenings and Meetings - Hopkins County

by Amber Averitt, SurfKY News