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...

Henderson County Traffic Advisory

HENDERSON, Ky. (6/1/15) — The Kentucky Transportation Cabinet plans to close a section of Kentucky 416 in Henderson… Read More

Pennyrile Soap Box Derby Hosts 34 Competitors

MADISONVILLE, Ky. (6/2/15) — The Pennyrile Soap Box Derby Association hosted its seventh annual race Saturday, May 30… Read More
1 DOW 17,942.65
-97.72 (-0.54%)    
2 S&P 2,102.70
-9.03 (-0.43%)    
3 NASDAQ 5,056.61
-26.32 (-0.52%)    

Most Read This Week

May 27, 2015 7367

VIDEO: Sparks Fly Over Hanson Rezoning Issue

by Tammy Holloway, SurfKY News
May 30, 2015 6800

Study of Virus Attack on Cancer Sees Success

by Julie Heflin
May 28, 2015 6476

Four Charged with Burglary for Entering Elderly…

by SurfKY News
May 27, 2015 4219

Midnight Ride on Rabbit Ridge Ends in Jail

by SurfKY News
May 27, 2015 3687

Crime Stoppers Top Most Wanted - May 27, 2015

by Crime Stoppers

Most Read This Month

May 15, 2015 11285

New Madisonville Business In Full Operation Soon

by Tammy Holloway, SurfKY News
May 23, 2015 9131

Missing 5-Year-Old Boy Found

by Doreen Dennis, SurfKY News

Stories Trending Now

May 31, 2015 1163

Hopkins District Court Fines Handed Down

by SurfKY News
June 01, 2015 1142

Authorities Discover Meth Lab While Assisting…

by SurfKY News
May 31, 2015 1023

Survivors, Caregivers, Supporters Gather for…

by Tammy Holloway, SurfKY News
June 01, 2015 958

Madisonville Police Arrest Reports Released -…

by SurfKY News
June 01, 2015 625

Human Relations Coordinator Identifies Possible…

by Tammy Holloway, SurfKY News
June 01, 2015 595

Dawson Springs Police Reports Released

by SurfKY News
May 31, 2015 565

Muhlenberg County High School Holds 2015…

by Charles W. Riley II, SurfKY News
June 01, 2015 511

UPDATE - Pursuit Ends in Two Vehicle Injury…

by SurfKY News
June 01, 2015 511

KSP Post 2 Activity Report - May 2015

by Trooper S. C. Recke
May 31, 2015 486

Madisonville Fire Department Report - May 31, 2015

by Doreen Dennis, SurfKY News