Pick Your Community: | Hopkins | Muhlenberg | Daviess | Christian | Henderson | Lakes | McCracken | Webster
Davis Motor Sales banner ad

Dave Says - Aug. 24, 2014

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.

© Copyright 2014 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 by using one of the social media links below.

button coupons
button classifieds

In Other News...

Humphries Cemetery Patriot Graves to Be Cleaned and Restored in January

CADIZ, Ky. (12/28/14) — Nestled beside a pasture at the end of Humphries Road in rural Trigg County, the Humphries… Read More

Most Read This Week

December 24, 2014 12816

Christmas Eve Bloody Brawl Erupts on Dulin Street

in Local (Hopkins) Top News by Doreen Dennis
December 25, 2014 8897

Gift Returns Done Right

in General News For All Sites by SurfKY News
December 25, 2014 6356

Arrests Made After Dulin Avenue Christmas Eve…

in Local (Hopkins) Top News by Officer C.P. Haynie
December 25, 2014 4634

Crime Stoppers Top Most Wanted - December 25, 2014

in Video by Crime Stoppers
December 23, 2014 4193

Couple's Alleged Dispute over Blanket Leads to…

in Local (Hopkins) Top News by Madisonville Police Department
December 22, 2014 4153

Madisonville Police Arrest Reports - Dec. 22, 2014

in Hopkins News by Madisonville Police Department
December 23, 2014 3659

Alleged Theft at Walmart Sends Two to Jail

in Local (Hopkins) Top News by Madisonville Police Department
December 23, 2014 3277

Disturbance Results in Vehicle, Foot Pursuit,…

in Local (Hopkins) Top News by Officer Tyler Russell
December 26, 2014 3197

2014 Looking Back: World Mourns Watson Family…

in Top News For All Sites by Paul McRee, SurfKY News
December 26, 2014 3182

5-Year-Old Boy Kills Buck/Doe

in Local (Muhlenberg) Top News by Randy Adams

Stories Trending Today

December 27, 2014 2598

John Prine to be Recognized at Grammy Awards

in Top News For All Sites by Paul McRee, SurfKY News
December 27, 2014 2301

2014 Concludes with Record Investments for…

in Top News For All Sites by Angela Blank
December 28, 2014 2199

Patriot to Idle Two Mines Tomorrow; 600-700 Jobs…

in Top News For All Sites by Rita Dukes Smith, SurfKY News Director
December 27, 2014 1635

Four Time Management Tips for the New Year by…

in General News For All Sites by David Taylor
December 26, 2014 1495

Simple Ways to Maintain Your Mental Acuity

in General News For All Sites by SurfKY News
December 27, 2014 1397

The Dangers of Belly Fat

in General News For All Sites by SurfKY News
December 27, 2014 1383

Women's Heart Attack Symptoms Can Differ from…

in General News For All Sites by SurfKY News
December 27, 2014 1376

How to Live as a One Income Family

in General News For All Sites by SurfKY News
December 27, 2014 1374

What to Look for in An Investment Property

in General News For All Sites by SurfKY News
December 27, 2014 1291

Keeping the Faith - 'The Puzzles of the Past'

in General News For All Sites by Ronnie McBrayer

SurfKY News Group, Inc.
Corporate Office & Studio
1125 Nebo Rd.  •  Madisonville, KY 42431
270.452.2727 (phone)
  •  270.452.2249 (fax)


Contact a member of our staff: www.surfky.com/contact
Copyright © 2014 SurfKY News Group, Inc.  •  Terms of Use  •  Site Map

social fbsocial twsocial yt
social gpsocial flrsocial rss