DEAR K.J.: I have no quarrel with a Roth IRA. This way, you have complete control over the money. If the child decides to do something else, you won't be taxed at all and you can withdraw the principal to make any necessary purchases. However, you turn my blood to lime Jell-O by talking about buying a car for your son. When the time comes, let him enjoy the thrill of buying his own car. With regard to the contribution, when he's out of school, no adjustments are necessary in the Roth or any other retirement programs. One account seems perfectly fine from my perspective.
DEAR BRUCE: I am turning 65, and am unsure when to start collecting Social Security. I intend to work until the day I die and don't want to give the government part of my income if Social Security is taken too soon. What is that age? Also, maybe you can help me with Medicare. I only use alternative medicines, haven't seen a doctor in more than 10 years. I just found out they take $98 a month out of Social Security for this health care that I won't use. I am in perfect health now, and I intend to stay that way! It is not in my best interest to sign up for Medicare, and I definitely don't want to take medicine. Your suggestions are greatly appreciated. -- E.D., Victoria, Texas
DEAR E.D.: Assuming you can collect the full amount at 65, then start collecting. You've earned the Social Security, and you should be accepting it, even though it will be taxed. I'm glad your health is wonderful, but you would be foolish not to enroll in Medicare Part B and pay the $98 a month. You say you won't use it, but you don't know that. You could step off a curb and fall, get into a car accident, lightning could strike ... lots of things could happen, and Medicare is an incredible bargain. Not to sign up could mean disaster a few years out without any coverage. There may be some things you would like them to cover that they will not. Trust me on this one: Medicare is a bargain for everyone 65 and over; take advantage of it.