Consumer Issues Questions

Q: I listen to Clark all the time and I've heard him say in Georgia you can get a free credit report (by law) from each of the big three reporting agencies, but how.  I've looked on line, and at e-loan.com and they all seem to want me to sign up for "monitoring".  I don't want monitoring, and I don't want to order something and hope to be able to cancel it in 1 month. That never seems to work. Suggestions?

A: You can get a free copy of your credit report in Georgia, and in many other states, by writing to each of the three main credit reporting bureaus and asking for it.

The three bureaus are Experian, Equifax and Trans-Union. You don't need to sign up for monitoring services, but you do have to put pen to paper because otherwise you can't get the free copy.

You can get a free copy of your credit report online from E-loan.com, but I recommend you get one from each of the three credit reporting bureaus because different information can surface on each report.
 

Q: My husband is a cancer survivor and has been cancer free for 3.5 years.  While we are thankful for his health, one lingering issue is health insurance.  Thanks to federal laws, as long as one of us is employed with a corporation or some other job that provides coverage, we are okay.  However, my husband has a great web development and hosting business outside of his corporate career that he could pursue full time if the benefits weren't an issue.

Do you have any advice on this topic?  How can someone self-employed who has a health "history" get insurance benefits?  Any advice would be so helpful!  Is there a standard length of time that a health insurance company requires before they will cover someone with cancer in their history?

A: It is so timely that you're writing to me now. Tonight, on WGN-TV, in Chicago, I'm doing a story on getting health insurance online. You can read the story at WGNTV.com/glink or if you get cable, watch tonight at 10:20pm Atlanta time.

But, here's the skinny: You should go online at the following websites:
www.ehealthinsurance.com
www.quotesmith.com
www.healthinsurance.com

Also, your husband should look into joining a trade association that would be related to his field of business. Many trade associations offer health benefits as an option to members. By purchasing inside a "group," (members of the association), the costs may be less expensive. For example, as a member of the American Federation of Television and Radio Artists (AFTRA), I can take advantage of certain health benefits.

Your husband can be insured, it's just all about cost. I'd start online and see how prohibitive the costs are and then make the decision based on whether his booming business will allow you to have the kind of coverage you need to feel secure.

Congratulations to you and your husband for starting your own successful business. There's nothing like working for yourself! (I've been doing it for 15 years.)

Q: I have noticed that the Discover Card credit card that we have allows us to pay over the internet (rather than through snail mail).  This is done through their SmartCheck payment option at discovercard.com.  However, when going about to enroll in this, part of the information they are asking for is our bank routing and checking account information.  I stopped at this point since I am a little concerned about giving this information out.  Do you know if this is okay (secure) to give them this information so that we can start making payments online rather than relying on the post office to get our check there?

A: I do believe it's safe and in fact, that's how I pay my Discover Card bill. So if you end up doing it, you're in good company.

Q: Can you tell me the difference between a CFP and a CHFC

I currently have my money managed by Morgan Stanley and I want an independent opinion about my investments.  The yellow pages have several people listed but I do not know what these acronyms stand for and who should I choose?

A: A CFP is a Certified Financial Planner. This is someone who has taken basic financial planning courses, passed a rigorous examination and has managed money under the tutilage of someone who is already a CFP.

A ChFC is a Chartered Financial Consultant. This is generally a life insurance agent who comes to financial planning from the life insurance specialty. It's sister designation is the Chartered Life Underwriter (CLU) and is awarded by the American College in Bryn Mawr, PA. Getting this designation requires extensive educational training, and people who carry this designation have an excellent background in insurance.

If you're looking for help within the Morgan Stanley group, try to work with a Chartered Financial Analyst (CFA), which is considered one of the most prestigious of all financial services credentials. This requires several years of work experience, plus passing a study course and exams in securities analysis, portfolio management, financial accounting, economics and ethics.

What you seem to want is a fee-only financial planner to take a look at your investments and tell you what's right and wrong with them, I think. Fee-only means you'll be charged a flat fee, usually an hourly fee, rather than commission-based selling.

Here are some places to try, from my book 50 Simple Things You Can Do To Improve Your Personal Finances:

Financial Planning Association  www.FPANET.org. They have a free publication on Financial Planners and what they can do for you.

National Association of Personal Financial Advisors, a trade group of fee-only financial advisors. 888-FEE ONLY. You might also try their website.

American Institute of Certified Public Accountants. The CPA's have a special personal finance designation. www.cpapsf.org.

Hope this helps. I've got more information in my books, or you can try Charles Jaffe's book: The Right Way To Hire Financial Help. It's excellent, full of numbers, and available through my website. (Click on the black BOOKS box at the top of the home page). Whatever you do, don't call someone listed in the yellow pages until you've exhausted all other options.

Q: Is whole life insurance a major waste?

A: I do personally think you get much, much more for your money with term life insurance rather than any version of whole life.

Whole life is essentially a savings account with an insurance wrapper. You over fund the cost of your insurance each year and save the rest. The idea is that you save so much that eventually you have enough to cover the cost of the death benefit forever.

Unfortunately (ie the real world) that rarely happens. And, no matter where the stock market goes (because that's where they're investing those dollars), you're double paying for the privilege. First you're paying too much for the death benefit you're getting (a full year and a half's worth of premium pays only the commission on the policy), and second, you're paying a management fee for the savings portion.

If you have dependents who would need help in case of your untimely death, you'll do far better by purchasing a substantial amount of term life insurance on a level load basis (that means the renewals are fixed for 10, 20 or 30 years.) So if you're a healthy 40 year old nonsmoker, you might be able to buy $500,000 in death benefit for $500 or less.

My favorite sites to check out are www.insure.com and www.quotesmith.com. But of course, you'll find others at www.google.com.

Q: I am a mortgage loan officer for Chase Manhattan Mortgage Corp.  I received a credit report that had low scores relative to other applicants scores that I have reviewed.  I would like to review this report with someone that might help me understand why the scores are so low.

Q:  I just received one of your books as a gift over the holidays.  I've started reading it, and in Chapter 1 it says that I should have a living will and durable POAs prepared.  I've been doing some research on the Internet, and there seems to be some expense involved in setting these up.  I have no assets to speak of, and I do not currently have any relationships with an attorney, and I would like to accomplish this with as minimal an expense as possible.  Please let me know what input you have with regards to this. 

A: Some employers have set up plans to help their employees obtain low cost legal services.  You can check with your employer to see if they have such a legal services plan.

Some accountants have relationships with attorneys that can assist consumers with low cost legal services.  And finally, some bar associations have referral systems that can guide you to attorneys that will draft simple documents at lower costs.

If these alternatives do not work for you, there are companies and do-it-yourself books that can assist you. Or, you might try a local stationary store to see if they have a living will or power of attorney that are valid for your state. Unfortunately, attorneys I have spoken to seem to feel that they sometimes are inadequate and at times may not be proper for all circumstances.

But if you don't want to spend the money, that's the risk you'll take.

Q: On my home from work today, I was listening to you on WSB radio. I find that I must take exception to your advice that you was giving out concerning the preparation of ones income tax return. I work for H&R Block and have for the last 19 years. When someone comes in to see me to get there tax return done, I do not turn it over to anyone else. I prepare the return myself. That way the client gets the full advantage of my experience and knowledge. Since all I do is income taxes, I have a much better knowledge of the tax laws that affect the regular client than does an accountant. I do not keep books or try to keep abreast with any of the accounting changes that might take place. I only concern myself with how to apply an accountants books to my clients tax situation. Also, the estimated taxes for any year is due on April 15, June 15, Sept. 15 and Jan. 15. I pride myself with keeping up with as many of the tax changes as possible. Those that only effect a small portion of taxpayers, I make sure that I  know
where to go to find any information that I might need. 

I am also an Enrolled Agent. To become an Enrolled Agent, A person has to take 4 test given by the IRS. These tests take a total of 10 1/2 hours to complete. I would be more than happy to talk with you at any time concerning taxes. 

A: Thanks for your comments. Being an enrolled agent is great, but the question was about going to an accountant's office, a CPA, and what would happen there. I relayed a real story that happened to me, and suggested that the caller continue to tackle doing his own taxes, which he has been doing for the past 5 or 6 years, with turbotax.

I also suggested if he was concerned about whether or not he had maximized his deductions to then make an appointment with an accountant to go over his taxes.

Thanks for correcting me on the June15 estimated tax payment. I got the others right, but may have misspoke and said July 15 instead of June 15.

I do have a question for you, that I hope with your expertise you can explain. Is it legal to use IRA funds to invest in real estate? Not to live in, but condos or homes to rent out?

Q: I have listened to you the past couple of weeks on WSB Radio in Atlanta as you have filled in for Clark Howard.  I certainly enjoyed the insights that you shared.

I have a question that I wonder if you might be able to assist me with.  I recently was discharged in Chapter 7 bankruptcy (discharge occurred 11/10/01).  Over the past few years I allowed my spending to race out of control and it finally became to much of a burden for me to be able to handle my bills.  I just could not come up with any other solution except bankruptcy.

I am a 42 year old single mother with an annual income of approximately $50,000.  I am currently renting an apartment.  I have always had a good credit rating and hope that I will be able to work towards a good rating in the future.  My question is to ask you for advice on what I should be doing now to get myself back on the track to a good credit rating. 

Also, I realize that I need to look seriously at purchasing a home at my earliest opportunity.  My parents gave me a $10,000 gift at Christmas, which I have put into an 8 month CD.  My parents gave me the gift specifically to be used as a down payment for a home.  They have no idea that I declared bankruptcy and therefore am in no position to think about financing a home at the present time.  My parents have told me that when I am ready to purchase a home they will give me another $10,000 to put toward the down payment.  What I need to know is what can I be doing now to get myself into a position where I would be able to get a lender to consider  me for a home loan?  How long do you anticipate that it will be before I can be seriously considered for financing? 

Any insight that you might be able to give me would be great appreciated.

A: Bankruptcy is a black mark on your credit and while you can get a loan after a year, you can forget about getting a loan at the kind of interest rates you're seeing advertised. Expect to pay anywhere from 2 to 5 percent above the going rate. So if 30-year loans are at 7 percent, your loan might be at 10 percent, plus extra points and fees.

That said, you need to know just how bad your credit score is and what specifically you can do to improve it. So, go to myFICO.com and for $12.95 you can purchase a copy of your credit history and score. The site will give you excellent recommendations for improving your score. You may need to acquire a secured credit card, gas cards, or if you can, a visa card. Charge only what you can pay off at the end of the month. No balances.

Over time, your situation will improve dramatically. Just remember, you have to keep your spending on track.

As for not being honest with your parents, that's up to you. But make sure your spending problem is taken care of, before you think about buying a home. When you're ready to buy, I humbly suggest you read my book: 100 Questions Every First-Time Buyer Should Ask. It will walk you through the process, including all the financing and credit questions you may have.

Q:  I WAS TRYING TO FIND THE LINK YOU SPOKE OF ON THE CLARK HOWARD SHOW, THE ONE ABOUT FILING TAXES AND WHAT WE CAN DO SUCH AS PAYING JAN MORTGAGE IN DEC, ADDING MONEY TO ROTH ETC...  

A: Check out irs.gov for a multitude of great tax tips. Thanks for listening.

Q: I heard the show on Thursday, 12-27-01 and had a comment for you about an experience I had.  You mentioned that a friend of yours had in bold letters on the back of her card CHECK PICTURE ID instead of having the users signature.  Well my sister-in-law asked me to purchase something for her and handed me her credit card.  She did not have me as an authorized user of the card, but gave me her driver's license to take just in case the store asked any questions.  Amazingly, the clerk did NOT ask any questions even after I handed her the driver's license (we don't look anything alike) and credit card.  She rang up the purchase, I signed the receipt, got the merchandise, and left without anyone stopping me to inquire further or investigate why I had a credit card and driver's license that weren't mine.  Just thought I'd let you know that credit card security still depends heavily on the clerks.

A: You're so very right.... It's up to the store clerks to be the first line of defense when it comes to identity theft, or charging on a stolen credit card. It may take a few more minutes, but I'd love to see everyone have to produce a photo ID, or put it on their

Q: I was listening to WSB750AM a few weeks ago and I heard about a website that we could visit to get a credit score. This website was not a credit bureau site. I believe the website was supposed to be... myfico.net or .com or .org.. None of these are correct and I can not find the site. The site was also supposed to have tips on how to work on improving your credit score. Please help me. I can not find the website or any links to it from your website.

A: No problem. The site you're looking for is www.myfico.com. It's a joint venture with Equifax and Fair Isaacs, the folks who invented the credit score.

Q: I just heard a call regarding troublesome fax calls. I received them as well, all hours of the day and night. The number always came up as "out of area" on the caller I.D. and the phone company was unable to trace the call. I didn't want to change my number, nor do I like using an answering machine. (I like to decide which calls I want to take. Once a message is left,
callers seem to feel you are obligated to return the call.)

Anyway, this is what I finally did. I purchased a really inexpensive fax machine and then printed out the first fax that came through. I had the origination number and a company name. I e-mailed and called the company and told them about the problem calls. Their computer-generated dialing system was off by one number. I asked them to remove the number immediately or I would file a nuisance complaint against them. I have not had another call since. The fax has proven to be handy, too. So, it was a good investment - I saved time and money.

Q: You mentioned the other day on your radio program about the 4 pieces of important paperwork you should have in place before one reaches their final resting place. 

A: You need (1) a Will  (2) a Living Will (3) Power of attorney for Health Care and (4) Power of attorney Financial Matters.

Q: Is there anywhere an honest person can go for relief with a credit score of 530 to consolidate credit card debt...forget consumer credit counseling as that is one of the contributing factors in my low score.  I am currently writing a letter to clean up my credit report.  I was told today by a consumer loan representative that my credit score is obviously incorrect and that I should take immediate action to clear it up. Meantime, I'm paying 13.5% car loan and numerous 20+% credit accounts.  Other than my obvious stupidity am I destined to just crash and burn?  I'm willing to pay higher interest temporarily to get my debts under control, but the "score" is a dead end. Thanks for any advice.  I am a homeowner since August 2000 and am employed full-time with a salary between 55,000 and 65,000.

A: You might try one of the national mortgage companies, like Countrywide Home Loans or Chase. They each have a sub-par lending group and may be able to help you make some headway with those bills. I hope you're able to pay off your debt quickly and get out of your credit consolidation program.

Q: Last week, on WGN-TV you had spoken about the New York disaster. The segment was about what a person should have set up in case of an accident. Some of the items were living will, picking a power of attorney, etc. I was wondering if you can e-mail the list.

I am middle aged, single and no children and I know I should have these things done. Let me know if this is a problem. 

A: I am still catching up from all the reporting I did in September. Unfortunately, I can't find a copy of that story. But I'm writing a whole book on the subject, that will be out next year. It's called 50 Simple Things You Can Do To Disaster-Proof Your Finances.

Here are some of the things you need to do:

1. Back up your computer data regularly. (CD-ROM rewrite hardware is cheap and blank CDs are even cheaper. This is the method I use.) Store it out of your home.
2. Rent a Safe Deposit box big enough for your back up CD and your paperwork.
3. Make copies of your important papers and keep the original ones in plastic.4. Buy a fireproof safe for your home. Keep a set of papers there and a set in your safe deposit box.
5. Videotape and photograph your assets. keep this in your safe deposit box too.
6. Construct an important people contact list. Distribute it when you travel.
7. Write a will, power of attorney for health care and financial matters, and a living will.
8. Keep an emergency contact list of doctors, lawyers, health insurance numbers and keep it with you when you travel.
9. Make a photocopy of your travel documents/passport/credit cards.

This is actually more than I discussed on the news, but since you asked, and I'm working on the book, I thought I'd give you what I have.

Q: It was nice meeting you at the Managing Your Money Seminar. I just have some questions to you. What are the pros and cons of being a real estate agent? Would you recommend me studying for it? 

Thank you for your answers in advance.

A: If you want to be a good real estate agent, you must be a people person, be willing to be on call 24/7/365, and be curious about how people live in their homes. If you want to see what real estate is about, I'd start by taking the course and getting your salesperson's license and then finding a job answering phones in a real estate office on the weekend to get your feet wet. Then, you can decide if being an agent is all that you think it could be.

Q: I heard part of your show today (9/16) on WSB 750.  You spoke with a fellow who was going to lose his job at a trucking company because he was being called up for active duty.  If I'd had the number, I'd have called in immediately, because that's illegal.  There are laws in place to protect members of the reserve and national guard from being terminated because they were called up.  He is entitled to return from active duty to the same position (or similar one) with the same salary and benefits, period.  If his company refuses to obey the law then he's probably entitled to monetary damages.  He should contact his reserve branch (Army, Airforce, etc.) immediately if there are any problems.

A: You know, it occurred to me after the show was over that it might be illegal. However, like the family leave law, it might be that very small employers (less than 50 employees or less than 10 employees) might be exempt. Because we were running up against the end of the show, I didn't have time to research it.

I will post this answer on my website. And hope that it helps someone.

Q: Have you heard of a scam of this sort?  Should I just take the lose of $158 as a lesson learned or should I send the other $37.00 processing fee and hope the rooms are there when we arrive?

A: Dispute the $158 with your credit card company. Do not send these folks any more money. There will be plenty of legitimate travel deals in the weeks and months ahead since the travel/airline industries have taken a huge hit and will be doing anything to get back business.

In the future, remember that if it sounds too good to be true, it probably is.

Q: Hi, I will be going on maternity leave in January with my husband's and I first child and my company does not offer paid maternity leave. Do you know of any recourse or any agency that I could contact for assistance.

A: Congratulations on your pregnancy. I hope that it continues to go well.

Unfortunately, the Family Leave Act does not require companies to provide you with a paid maternity leave. Companies with 50 or more employees are required to give you unpaid leave, however, and to hold your job for you while you are gone.

There are no agencies I know of that provide assistance here. Pregnancy typically doesn't qualify for short-term disability unless you have to leave your job because your pregnancy goes bad and you can't work (if you develop high blood pressure or some other problem).

It would be very nice if all companies provided some paid maternity leave. The best you can do is to use your vacation time as part of your maternity leave and any other time off you'll be given for the rest of the year.

Q: You mentioned today on the Clark Howard show that you would put up several links to organizations specializing in the fraudulent sale of securities.  I can't find the links.  Could you please direct me?

A: Here they are:

www.sec.gov
www.nasdr.com
www.investorprotection.org
www.investoreducation.org
www.nasaa.org

Q: I am 74 years old.  My husband is not well mentally and physically and may have to go into a nursing home.  The only money we have is social security.  His is $800 a month and mine is $500 a month.  The house has been in my name only for over 15 years. Can they make me sale the house to pay for part of his nursing home costs?   If they took his social security check and my home, I would have no place to live as I couldn't live anywhere on $500 a month.  We live in Georgia.  

A: Since you have owned the house in your name for 15 years, the government cannot force you to sell it to contribute to the costs of your husband's nursing home stay. Please consult with your attorney for more details.

Q: What is the best way to check out the builders financial strength? Under other circumstances I would pull a D&B...but does that apply here? Any input to the process would be appreciated. 

A: A D&B is a good idea. Also, see if the builder is a member in good standing with the local builder's association. But the most telling is if the builder wants you to put up all the cash upfront to build your home. If they don't have the resources to build -- or at least start to build -- I think that's a big red flag.

Q: I found out today that my apartment complex wants to charge me extra rent at the end of my lease (which ends July 31st) because I "failed to give them 60 days notice that I was moving out"... 

I would think that because I didn't call them about signing a new lease, it was implied that I was moving out. 

I don't have my lease handy today, so I don't know if I agreed to this clause or not. Is this standard practice? Am I getting ripped off? If it's in the lease, am I out of luck?

A: If your lease says that if you don't actively cancel the lease with 60 days notice it will automatically roll over, then your landlord is correct. But if the lease ends and there is no rollover provision, your landlord is wrong and shouldn't dock you anything.

You must look over your lease to see what the fine print says.

Q: When is the best time of year to go to Australia?  I would like to go to Brisbane on the Sunshine coast.  Also can you suggest some good travel ideas or tours there?  I want to spend about 7-9 days there or so and want to "see the sights".  Also we are on a budget so it needs to be reasonable.  I check the flights daily to BNE and SYD but they are all over the 1000-1200 mark. Anytime best to visit?  

A: I don't really do much with travel -- that's Clark's bag. But when it's winter in North America, it's summer Australia. My father-in-law has gone for Christmas and says it's hot and beautiful.

As for prices, I can't help you there. But my favorite sites for deals are www.Expedia.com, www.orbitz.com, and www.travelocity.com.

Q: This website promises that if you use your credit card at certain well-known restaurants, shops, etc., a percentage will be put into a college account for your child. How does this work and is it safe to give out credit card information? Is this a reputable business? 

A: Clark has signed up for www.UPromise.com and it appears to be a legitimate company run by legitimate people. I think it's probably safe to sign up. I'll probably do the same shortly.

Q: How long should you keep bills, bank statements and other household documents.

A: You should keep bank statements for at least a year, to make sure that everything has been accounted for. Your credit card statements (unless you keep them in a software program like Quicken and Microsoft money) should be kept until everything has been resolved or longer if you may return a purchase or have to prove that you purchased something. Tax returns should be kept forever, I think. Keep home improvement bills and receipts until you've sold the house.

I have a longer list for specific documents in both of my books: 50 Simple Things You Can Do To Improve Your Personal Finances and 100 Questions You Should Ask About Your Personal Finances.

Q: With all of your knowledge in real estate, maybe you can help me with my question.

I bought a town home last November and was married in March.   Well, due to my marriage, my name has changed.  I'm working on getting my name changed on everything, but I'm running into a brick wall when trying to find out how to change the name on the deed to my home.  My loan company has changed the name on the loan and when I asked them if they knew how to change my name on my home, they had no idea.  I called the county courthouse and no one really had any answers.  One person suggested I use a 'Quit Claim Deed' to make the change.  Is that correct? 

A: While you can change the name on the title to your home, it is not a requirement to do so.  I am advised that the best way to change the name on your home is to use a quitclaim deed that would transfer title from your old name to your new name.  However, it is probably not necessary.  When you sell your home, you would, in any event, sign the deed to the new purchasers as "Stacy Doe" formerly known as "Stacy Smith."

Q: I have been receiving notices from credit card companies giving me the option to opt out of their giving information about my account to either companies within their company or to outside companies. Is it a good idea to opt out of both parts or just to opt out of the second part referring to companies outside of the original company? Or is it a bad idea to opt out at all? Please send me some information explaining what will happen if I choose to opt out of either. 

A: I think you should opt out of everything. The only thing that will happen is you will stop your personal information from being sold every which way.

Q: I would like the web site for the government where I can buy the horses, land and automobiles.

A: These are government-run websites where you can buy real stuff, either outright, or at auction.

www.adoptahorse.blm.gov (horses and burros)
www.bid4assets.com (luxury items seized at auction)
www.gsa.gov/pr/prhome.htm (prime federal land)
www.gomr.mms.gov (oil-drilling leases)
www.abmc.gov (grave site flowers at American military cemeteries)

Q: I recently have heard you talking about share lists and how this can facilitate the stealing of my identity/credit...I'm naturally paranoid about these things so I was nearly panic stricken when I started receiving something akin to a privacy policy disclosures (which, mind you, did not have any address, phone number, or e-mail) whose affiliates I have never heard of, and to make matters worse, they had my name with a non-existent middle initial.  Am I rightfully nervous?  What should I do? 

A: The Opt Out disclosures are now required by Federal Law. You should opt out so these financial companies do not sell your personal information. Don't throw them out!!!!

Check the May 29,2001 story from WGN on my website, which should be posted in the next day or so to read about Opting Out and why you should do it.

Q: I am interested in working in the mortgage industry but I am not sure where to start. 

What kind of education do I need and where do I start to looking? Basically where do I start?

A: You should start by getting a job with a licensed mortgage broker and learn the business from the ground up. Once you understand how the mortgage industry works, you can become a mortgage broker, or go to work for a lender in a loan officer capacity.

Q: I'm thinking about entering a CFP certification program at Oglethorpe University in Atlanta. I currently work in a corp finance and accounting dept with no direct financial planning experience. What is your opinion of CFP certificate programs as opposed to graduate or undergrad programs? Also, do you think it's wise to obtain the CFP without any experience in this field? I do have a degree in Finance. 

A: If you want to be a CFP, you have to take the courses, pass an exam and then spend time in the field getting experience (to get certified).

I think it's an excellent program and I think being a fee-only financial planner is a job category that will grow with time.

Q: My father in law passed away recently and because of this, my husband and I are going to be inheriting around $150,000.  We are in our early thirties and owe $10,000 in credit card debt.  We have a house (although not paid off), own 1 car but need to buy another one, and have about $8,000 in our 401K. We also have a mutual fund for our child's college worth about $2000.  I am a stay at home Mom and do not plan to go back to work for a few years.  We are going to meet with the financial advisor who was handling my father in law's money, but I would like to hear what you think we should do with our inheritance.  

A: I'm sorry for your father-in-law's passing. But, he has given you and your husband a wonderful gift -- the ability to provide for yourselves in your old age.

Take $10,000 and pay off your credit cards. Then, cut up your cards (or freeze them in water) until you have your spending under control. Take another $15,000 and buy a pre-owned car. (If you can spend less, great). Look for low-mileage, and don't lease. Buy a car you can live with for the next 5 to 10 years.

Take another $10,000 and keep it in a 2-week revolving CD. This is your emergency money.

Take the rest of the cash (about $115,000) and invest it in an S&P 500 index fund. Vanguard has the cheapest index funds (and one that accounts for what little taxes an index fund generates), but TIAA-Cref is also good, as is Fidelity and Charles Schwab. You're aiming for 10 % growth per year. If you get that, you'll basically double your money every 7 years. In 35 years, if all goes according to plan, you should have around $1.8 million in the bank to fund your retirement. And if you need a little along the way, say to pay for your children's education, it will be there for you.

Q: I'm looking for a good budget form to use each month.  Didn't see any on your site.  Can you recommend a place to find one?  

A: I have one in my book, 100 Questions You Should Ask About Your Personal Finances, but it's not electronic. You'd have to photocopy it.

You might want to think about investing in Quicken or QuickBooks, if you have a small business. It's really worth it's weight in Gold.

Q: I am in the market shopping for a digital camera. I know what I want to purchase, the local retail for this camera is $899.99. 

The cheapest I have found is $695.00 on the internet. given the price difference, I definitely want to purchase it online. My question to you is that how can I protect myself from the online alligators? I know to use a credit card.

A: It's entirely possible that the $650 you pay online is the best deal you're going to get. The only way to protect yourself, however, is to make sure you're dealing with an up and up company that will be there. Also, be sure that purchasing your camera online doesn't invalidate the warranty (This is true of some finer watch manufacturers -- you buy online for less but then you can't get your $2,000 watch serviced for free).

Q: We are receiving a house from my mother-in-law and wonder how we can get around paying taxes on that much money.  I do believe that you do not have to pay taxes on a gift up to $10,000.  What do we do with the remainder of that money?  Could we have it written up to say that we are paying her, but we really aren't?  

A: It's your mother who owes the gift tax, not you. But there are ways to structure the gift where she gives you (and your spouse) $10,000 of value each per year over a set number of years.

Please consult an estate attorney who can help you draw up the papers legally.

Q: The exteriors of our homes are painted by a painting contractor
(hired by our homeowners' association) who has been painting them for the past 16 years since they were built. We are having a lot of problems now with the wood. T 111 siding and the glue lam beams.  The siding is checking and the beams are delaminating and rotting.  In trying to figure out what has gone wrong we have determined that the painter has done no prep work, no pressure washing, no caulking, no resetting of nails, has not used a good quality paint (Sherwin Williams Sher Clad)   and has not back rolled the paint after spraying.  He also only painted a side here and a side there over the years as he felt needed it instead of painting a whole house each time.  Consequently we really could not oversee what was and  wasn't being done.  Can you make any comments or suggestions about what we should do? 

A: Contact a contractor or reliable painting company for an estimate on how much it will cost to fix the damage and repaint your homes. Then, approach the painter you used. If you paid him to repaint all of the townhomes throughout the years and he didn't, you may have legal options available to you. If you paid him a little bit to do touch-up work, then you may not. An attorney can guide you further.

Q: We are in a new subdivision and are trying to get everything going on a limited budget. Where can we get more information about the procedures for creating bylaws, or find some type of generic list, as well as find out more information such as enforcement? 

A: Try the Community Association Institute. (Look in one of the search engines. I can't quite remember their web address since it has a dash in it). They might provide you with something to start with. Nolo Press (www.nolo.com) might have something as well. You may want to have an attorney review the documents. It could save you thousands of dollars in legal bills down the line.

Q: I have a question about the law of Imminent Domain, but I am too shy to call Clark, so I thought about.  My husband and I own 7 acres of land in Henry County, south of Atlanta.  Our house is built on this 7 acres.  We have three creeks that intersect on our property, and run along the back property line.  It is absolutely beautiful.  Henry County has decided to build a reservoir, which will require them taking 4 acres of ours.  They have offered us less money than we paid for the land 13 years ago, because they say it is mostly flood plain.  To make matters worse, we have learned that the county has not gotten permission from the Army Corps of Engineers or the EPA to build this reservoir.  I have a copy from the EPA to the Henry County Water Authority that states the reservoir will have to pass major environmental hurdles before it can be approved.  The EPA is also encouraging a regional approach to the metro area's water supply, and not a county approach.  We were served condemnation papers yesterday for the four acres.  We are very concerned, because what if the county condemns our property, but then never builds the reservoir.  We will have lost our property and our beautiful creeks, and be left with no water front property at all.  How should we proceed?

A: I really can't help you. You should immediately talk to a real estate attorney about protecting your property. It may already be too late, but find an attorney who specializes in condemnation. Contact the Georgia Bar Association for a referral.

Q: I was considering consolidation of my debt this summer and was also considering purchasing a car this fall. Will the consolidation affect my credit rating when I am looking this fall to purchase a car? I am not consolidating because I can't make my payments. I am doing it hopefully to get a better rate. Do you have any suggestions/ideas? 

A: As long as your debt isn't the maximum (have you maxed out on any charge cards) it could be and as long as you make all of your minimum payments on time, your credit rating should be okay. Consolidating is good, but make sure to cancel the old cards (in writing) so you don't have too many outstanding cards. Finally, let a little time go by between consolidating your debt and buying your new car. I'd love to see you be able to pay it off before making a big purchase.

Q: As a knowledgeable real estate advisor, hoping you may be able to help me make a decision on my residence. I Iive in a 7 year old class-action lawsuit house, as it has Dryvit Stucco (banned in NC), Masonite siding, blue poly water pipes, and up until recently a defective dip-tube hot water heater. 

My fake stucco has been a constant problem.  In 7 years, it has been
'repaired' by certified Dryvit contractors 4 times and the water keeps on flowing.  I have made my decision to strip off the fake stuff and replace it with cement siding (Hardiplank) and stacked stone, as brick would be too costly.  The bigger problem is the other 3 sides of the house that hs Masonite siding.  I have recently received a quote of just around $25,000 to take off the defective stuff and replace it with hardiplank.  As a class-action member, I'm expecting to receive around $5000 from the settlement fund.  I'm sure that the quote is on the low end as I expect to discover much more damage once the siding is fully removed.

The $20,000+ gap has me wondering whether to refinance with cash out or take an equity credit line.  My current mortgage carries a $130,000 balance with 23 years left at 7%. The value of the house (if repaired) is in the $275,000-$300,000 range. I can get a credit line at prime+1 (variable), but that's not much different than conventional mortgage rates. 

Would you have any suggestions on how to save my sanity without going bankrupt? 

A: I don't know how long you plan to stay, but you may be able to do a cash out refinance and pay for the whole thing. On a cash-out refinance, you can take out up to 80 percent of the home's appraised value. If that's $300,000, you're talking about going up to $270,000. Your interest rate should be low because you'll be under the $272,500 conventional limit. Do this, and fix your home. Then, if you need the cash, sell it and buy something else.

Q: I have stock that was given to me as a gift about 20 to 25 years ago. This  year I sold a small portion of this. How do I report it on my taxes? Should I try to find out what it was worth twenty years ago and then do a capital gains or loss?  Any information about this would be helpful.  If you can't give me an answer do you know where I can find one? 

A: Contact the company. They will know the price on the date of purchase. And yes, you need to figure out if you've had a gain or loss in 20 years. If you have a gain, you will have to pay 20% if you're in the 28 percent bracket or above, or 10 percent if you're in a lower bracket.

Your tax preparer can help you further.

Q: I was listening to the "Clark Howard" show when you were hosting and talking about fake stucco.  I know that fake stucco is a bad bad thing, but what about real stucco?  The reason I ask this is because my wife and I are building our first home, and I love the look of stucco.  So we went with using real or hard coat stucco as the exterior.  Since then we are getting worried that all the bad press around stucco is going to hurt us if we ever try to sell.  Is the problems with fake stucco also there with real stucco?  Are the sells of homes with real stucco being hurt as well? 

A: Real Stucco, if applied properly, shouldn't be a problem.

Q: I had a stolen check forged for $900. (Stolen out of my home by my cleaning lady, because Clark Howard told me to leave my checkbook at home).  My bank (Wachovia) had me fill out an affidavit of fraud and told me I wouldn't get my money back for ten business days.  At the end of the ten days, I got a call saying that my husband had to fill out the affidavit because it was his signature that was forged on the check. When I asked them why it took so long to figure that out, there was no answer.  They said after they got the new affidavit, the money would be credited the next day.  I called each day to check, and was told "by tomorrow" for three more days.  They were also not very helpful concerning credits for overdraft charges, etc.  I do now finally have all the money back, but was wondering if this is normal customer no-service for banks or should I start looking for a new bank?  

A: Doesn't sound too good. Perhaps you could contact a supervisor and keep going up until you reach someone who can tell you why it took so long to get this straightened out. If you don't like the answer, I'd start shopping for another bank.

Glad you got all the cash back. Relatively speaking, the whole things sounds like it wasn't too bad.

Q: I heard you on WSB concerning Stucco’s bad rap and considering I am a home owner for 5 years I can tell you it is not just rap, it’s crap. Nevertheless I have a couple of questions this stuff: 1) Have you ever heard of “Liquid Vinyl”?  Will it help as much as people advertise? Since I heard an Inspector on your show say he would simply spray his house down with silicone, should he have one I thought this might be a logical method of sealing the house. 2) Legal means: How should I go about finding the legal precedent from the cases that were won in Chicago? 

My house is not in bad shape since I’ve tried very hard to seal and inspect but I am looking for ways to prevent the worse from happening. 

A: I've never heard of sealing a home with the stuff that inspector was talking about. The inspectors I've interviewed say the only way to prevent synthetic stucco from leaking is to properly maintain your home and make sure it was built correctly to begin with.

As for case loads, you can go on the web and start searching there. 

Q: What is your opinion about who needs a Living Trust additional to Will. For example if I have much below $650,000. (a house and a few stocks) 

A: You probably don't need a living trust, although that just helps to bypass probate, which is a good thing. Living trusts don't do anything to reduce any potential estate taxes. Other kinds of trusts do help reduce estate taxes. But if you're at $650,000 or less, you don't have to worry about estate taxes. If you add on a life insurance benefit, then you might need to think about it.

Q: I would like to know of a website I could use to help in any and all deductions.

A: Check out the LA Times, which did a special on taxes. It's www.LATimes.com. Then, go to the IRS website for details and to order Publication 17. www.irs.gov.

Q: I thought I heard you talk about an internet site where one can now
register for new domain extensions, .shop, etc.

A: It's www.new.net.

Q: My husband and I bought our home and surrounding property from his grandfather back in 1997.  There are 3 separate lots...  the lot the house sits on, 1/2 of the lot that sits next to the house and a triangle lot in the back...

Recently the home behind us was sold and the new owners are under the impression that the land in back is theirs when in fact it is ours.  I made copies of the deeds along with the photos of the lots from our county and they still insist that this land is theirs...  What steps do we need to take to ensure that our property is secure???  I have a call into the county...  I talked to someone and they said that as long as we have the deeds, there isn't a problem.  I am slightly nervous about friction with neighbors...  We are planning on fencing our entire property out back but had not planned to do so for at least another 9 months to a year.

A: You can fence the lot and that will certainly clear things up. But in the meantime, consider staking your property. You can hire a surveyor who can stake the property which will make it quite official.

Should your neighbors attempt to fence in the property, or develop it, or put a swingset on it, you may have to hire an attorney to explore your legal options. In the meantime, you should get to know your neighbors. It's possible they were told that their property included your land and may have an action against the real estate agent or seller.

Q: I was put on short term disability back in Dec.  I have been with this company almost 11 years & have always known them to pay 100% short term disability. Fortunately for them they've really never had anyone out for an extended period of time, but at the same time I was put on std, another employee was diagnosed with cancer & has also been put on std, which will most likely roll over to long term for both of us. In Jan we received a letter that stated  the company would no longer pay 100% but would pay 80%. Is that legal? Can they change the policy in the middle of a disability to suit the company?  I was under the impression that if someone else goes out on disability that they would have to abide by the change, but if your already on disability that pays 100%, then that's the way it should stay unless you come off then go back on.   

A: I'm sorry, but I don't know what your policy says. Read it and see if it allows the company to change policies and benefits. If it doesn't say anything, consider talking to an attorney who specializes in company benefits.

Q: Is there a law that makes us pay taxes or is it voluntary? If there
is a law please let me know there.

A: Federal law requires that you pay your income taxes. Failure to do so can result in huge fines and lawsuits. Tax evasion is a serious matter. For more details consult a CPA (certified public accountant) or contact the IRS. You must file your tax return even if you don't owe anything.

Q: Some months ago my husband fell for a telemarketing companys' pitch and he signed us up to receive some magazines.  As is usually the case, this service was OK, but this company proceeded to call us repeatedly.  Their pitch usually went something like "Hi, we're calling to make sure you are happy with your service, oh by the way, wouldn't you like to sign up for this new service ..."  To make matters even worse, they repeatedly sold our information to other magazine companies who would call with the line, "We're calling to verify your information and we'll send you more magazines".  Now keep in mind these other companies have all of our info - credit card info and everything.  My husband thought they were with the same organization he originally signed up with - as we learned the hard way - they were independent companies charging us for more - new - worthless magazines.  At one point we had three subscription services billing our credit cards for various amounts.  We finally got all that straightened out and we have cancelled (via certified mail) all of these so called services. 

The problem now is that one company insists we owe them a final payment of about $30.00.  I have communicated with them via certified mail that they are incorrect and if they want to discuss it further to do so in writing.  I asked them in this letter that they delete all of our information from their records and not contact us via phone again.  They have harrassed us so much that I even subscribe to Bellsouth's Privacy Director Service so that I can reject their calls when they come in. I'm tempted to change my phone number, but I wanted to ask if there were any laws governing this type of harassment? 

A: You should follow up with the local office of the FTC and file a complaint. Complain also to the Attorney General's office of the state (and the state in which the company does business) and the Better business bureau. Send copies of the complaints with a strong letter from you or, better yet, your attorney. 

This should stem the tide. Next time, follow this advice: Never buy anything over the phone unless you initiated the call.

Q: I need your advice My gas company is Columbia Energy but now they are assigning our account to a company called NewPower and I am concerned about the rates going up. I went to their website and I called them they tell me the rates will remain the same. How do I protect myself because I might not get the bill for about 60 days. 

A: Make sure you get the deal in writing and you want the rate to be fixed. Once you're switched, you can shop the market and you can switch if you find a better deal. You might even want to print information off of the web site.