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.

e-max.it: your social media marketing partner

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...

Owensboro's Back Alley Musicals Staging 'Fiddler on the Roof'

OWENSBORO, Ky. (7/4/15) — Back Alley Musicals will stage Fiddler on the Roof featuring a very talented cast of 56 local… Read More

Col. Stephen Trigg Chapter SAR to Read the Declaration of Independence

CADIZ, Ky. (7/3/15) — The Col. Stephen Trigg Chapter of the Sons of the American Revolution will host its second annual… Read More
1 DOW 17,730.11
-27.80 (-0.16%)    
2 S&P 2,076.78
-0.64 (-0.03%)    
3 NASDAQ 5,009.21
0.00 (0.00%)    

Most Read This Week

July 02, 2015 14654

Emergency Response Team on Scene of Standoff on…

by Doreen Dennis, SurfKY News
July 02, 2015 6991

Police: Stand Off Suspect in Critical Condition

by Doreen Dennis, SurfKY News
June 29, 2015 5299

UPDATE: Victim of Home Invasion/Homicide Died of…

by SurfKY News
June 29, 2015 4062

Accused Synthetic Marijuana Traffickers Appear in…

by Doreen Dennis, SurfKY News
June 28, 2015 3655

'Curb Service’ at Local Eatery Ends with DUI…

by Doreen Dennis, SurfKY News

Most Read This Month

June 24, 2015 45363

Western Kentucky, Southern Indiana's Largest…

by Doreen Dennis, SurfKY News
July 02, 2015 14654

Emergency Response Team on Scene of Standoff on…

by Doreen Dennis, SurfKY News

Stories Trending Now

July 03, 2015 3126

KMA Reminds Motorist of New Kentucky Red Light Law

by David Holt
July 03, 2015 1157

Planning Commission Approves Re-zoning…

by Tammy Holloway, SurfKY News
July 03, 2015 1061

County Clerk Warns of Telephone Scam in Hopkins…

by Keenan Cloern
July 03, 2015 966

UPDATE - Suspicious Package under Investigation

by SurfKY News
July 03, 2015 939

States Where Motorcycles Can Run Red Lights…

by Michelle Megna
July 04, 2015 850

Happenings and Meetings – Hopkins County

by Tammy Holloway, SurfKY News
July 04, 2015 825

Heavy Rains Flood Streets Around Town

by Doreen Dennis, SurfKY News
July 03, 2015 641

Pet of the Day

by Natalie Ostrander
July 03, 2015 496

Central City All Stars Top Bremen All Stars 8-5

by Mike Groves, SurfKY News
July 03, 2015 493

Beechmont All Stars Defeat Auburn All Stars 10-2

by Mike Groves, SurfKY News