DEAR BRUCE: About 20 years ago, we bought a membership in a lot 500 miles away for $6,000. The annual dues are $290 and the property taxes $11. The lot has a land value of $3,000. We contacted a local real estate agent regarding selling. He was not interested. We asked the resort if we could gift it to them. They said "no," and if you don't pay your dues we turn you over to collections. If we don't pay property taxes, the county will sell the land. It takes several years for this to happen. We are in our 60s and want to clean up this mess. Please help. -- A.B., via e-mail
DEAR A.B.: In your letter you say that the lot has a value of $3,000, but I think what you mean is that the lot is assessed by the county at $3,000. It clearly has little or no real value. This is demonstrated by the fact that the real estate agent cannot find a market. The promoters know that there is no value, and they would prefer to have the dues paid to them. I'm reluctant to suggest this, but you really ought to get an attorney to review the contracts that you signed. They can threaten collections, but whether it would actually pay for them to do that is another story. As you point out you could allow the property to be foreclosed upon by the county, but until that action takes place, you will continue to be responsible for not only the taxes but the annual dues. You signed yourself as "suckers" in your letter and, unfortunately, memberships in these deals generally do not work out well.
DEAR BRUCE: A friend of mine passed away, leaving his wife with a $400,000 mortgage and $900,000 in life insurance. She earns $70,000 a year and has a 1-year-old child. I told her that she should pay off the mortgage and invest the balance in something safe like CDs. Others have suggested investing the entire $900,000. Which do you think is the best? I have assumed a 4 percent return on her investments if she were to make them. -- P.K., Indiana