DEAR BRUCE: Most of my younger years were involved in raising my four children and sending them to "better" schools. I am now 65 and find that I only have about $50,000 in savings. The money is not gaining much interest at all and I would like to know what to do. Is there any investment adviser that would give me the straight scoop (as opposed to one that might have a self interest)? What about Roth IRAs? I need help and don't know where to get it. -- H.B., via e-mail
DEAR H.B.: Unfortunately, at 65 and with only $50,000 in assets, you are going to have to do a lot of fancy maneuvering. Even if you have the maximum in Social Security benefits, as a married couple you would receive only about $20,000 a year -- probably less. As to investment advisers, there is very little that anyone can tell you other than you have so little money that you will probably have to continue to work part-time. At today's interest rates, your $50,000 very likely would not even earn $1,800 a year. Whether your children who attended "better" schools are in a position to help you is a matter between you and them.
DEAR BRUCE: My husband and I own a home and two vehicles. Our house payment is $1,400 a month. One of our vehicles is paid for, and the other has a $9,000 balance with a monthly payment of $400. We have no trouble making these payments with our income. We have roughly $8,000 in savings and expect another $8,500 from our tax refund. With this $16,500, I think we should pay off the remaining vehicle debt, as the interest rate is 7.99 percent. My husband does not agree. He thinks we should pay more than the monthly $400 payment for the next few months. I realize we should keep our savings at a comfortable level for emergencies, but I hate the idea of paying the interest every month when we have the money to pay it off. What do you recommend? -- K.M., West Virginia
DEAR K.M.: Is this simple interest, or is it computed under some arrangement where you not only borrow the principal but the interest in advance, as well? If it is the former, then paying it off in advance makes sense, since you're paying a relatively high percentage. If it is computed under a system where you borrow the interest as well as the principal, then the majority of your payments first go to pay off the interest leaving the principal until last. If that's the case, then the likelihood is that you've paid off most of the interest, so there's no great saving. If it's a simple interest loan at 8 percent, it may make sense. You are correct in observing that you should have some money for emergencies, but a credit line can provide thst at no cost. If you don't need the money, then you don't get charged.
DEAR BRUCE: After 45 years of computer programming, I want to retire. I started a small business in 2000 working from home. I've never pushed it, and I'm doing OK. I'd like to sell the business, but brokers don't seem to be interested because it really isn't very big. I have no idea how to find a buyer. I'd be willing to provide training and even stick around until the buyer is comfortable. I have received favorable write-ups in business journals, but how do I let people know that it is for sale? -- J.W., via e-mail
DEAR J.W.: I have a feeling that you are going to have some trouble in this economy trying to sell a business. Having said that, have you tried advertising? I'm not being sarcastic. There are numerous trade publications that deal with computer-related issues, and most have classified sections. There are of course the national newspapers such as The Wall Street Journal, that have well-read business sections. Try local advertising in your newspapers. There are costs to doing business and costs to sell them. Don't be bashful.