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The retirement investment press is vibrating over new federal regulations that will seize sizable portions of 401k accounts and make it very difficult to own gold. While it took the cooperation of hundreds of congressmen to enact the new provisions – laws and regulations which modify the basic interpretation of the search and seizure provisions of the 4th Amendment and the tax codes that offer incentive to save for retirement – one particular California Congresswoman has come in for severe criticism. A Santa Barbara member of the New Democrat Coalition, Lois Capps, Dist. 23, is in her 8th term representing...

Dear Carrie: I'm 60 and will probably retire between age 66 and 70. I currently have $375,000 in IRA/401(k) funds and I'm adding 8 percent of my income annually. My employer matches a portion. I still have a mortgage of over $165,000 at 4.75 percent. I'm wondering... should I stop my 401(k) contributions and apply that money in extra principal on my mortgage? If I do, I'd pay my house off in about 10 years, making life a lot easier when I retire. But I'd lose the tax advantages as well as the employer match. One idea is to contribute...

SHE had so much. Yet Tammy Strobel wasn’t happy. Working as a project manager with an investment management firm in Davis, Calif., and making about $40,000 a year, she was, as she put it, caught in the “work-spend treadmill.” So one day she stepped off. Inspired by books and blog entries about living simply, Ms. Strobel and her husband, Logan Smith, both 31, began donating some of their belongings to charity. As the months passed, out went stacks of sweaters, shoes, books, pots and pans, even the television after a trial separation during which it was relegated to a closet....

Chase plans to eliminate by the first quarter of next year a common industry practice that enraged many consumers. Instead of lumping a day’s worth of debit card and A.T.M. transactions together and then processing the highest amounts first — a practice that has caused large numbers of consumers to overdraw more quickly and pay more fees — it will credit the transactions chronologically. Chase also plans to allow customers to opt out of overdraft coverage. Consumers who overdraw often do not realize that overdraft coverage is automatic and that the bank will not simply cut them off when their...

As banks shy away from making risky consumer loans, a mediocre credit history just won't cut it anymore. To get the best rates on mortgages, credit cards and auto loans, you need a killer score. Your FICO score is a numerical measure of your creditworthiness that ranges from 300 to 850. While there are a few different credit scoring systems available, it's the FICO score, created by the Fair Isaac Corporation, that most lenders look at when they check your credit. Lenders have already raised their standards by about 20 to 40 points this year, according to Barry Paperno, consumer...

Some homeowners who sign up for the government's mortgage assistance program are getting a nasty surprise: Lower credit scores. For borrowers who are making their payments on time but are on the verge of default, the Obama administration's loan modification program can reduce their credit score as much as 100 points. That makes it harder to get a loan and can present a problem when applying for a new job.

One mistake could cost Trina Lee her Christmas. Things have been tight for the Arizona-based nursing assistant since she got laid off two years ago and suffered some medical problems that have kept her from working full-time. [...] Earlier this month, she was feeling temporarily flush because she has prepaid most of her bills and figured the rest of her December income from child support and a part-time job could be spent on Christmas gifts. So she splurged on a $65 meal with her mom and brother, knowing that it was possible that this one meal could overdraft her checking...

Dear Carrie: I'm 55 years old and I got out of my 401(k) plan. I have a lot of payday loans and am really struggling. Can you offer me any advice? -- A Reader Dear Reader: I'm so glad that you wrote in. If you're mired in payday loans, your situation is serious and you need to get on another path quickly. You've taken the first step by reaching out for help and I applaud you for that. As you know from experience, payday loans are probably the most costly source of money. While on the surface it may seem...

Don't Do It! (Cashing Out 401ks)Monday, November 9. 2009 Posted by Karl Denninger in Consumer at 08:44 Grrrrr.... As the last of his severance pay dwindled away in March, Brad Cleghorn of northwest suburban Marengo cashed out his 401(k) plan in order to pay his mortgage and feed his family. Cleghorn is not alone. A Hewitt Associates study shows that 46 percent of workers with 401(k) plans who lost or switched jobs cashed the plans in, a trend that could lead to serious problems when younger generations of people working today reach retirement. That's not the real problem folks. Let...

South Florida homeowners walking away from underwater mortgages By MONICA HATCHER Miami Herald Sunday, October 25, 2009 Andres Duque thought he got a real steal when he paid $125,000 for his Little Haiti condo. But four years later, similar units are selling for $35,000 and even less. And so, faced with the prospect of being underwater on his mortgage — owing more than the unit is worth — for the next 20 years, Duque, 33, made what seemed to him like a rational choice: to cut and run. He stopped paying the mortgage, basically forcing the lender to take the...

I have a dilemma for all the financially wise Freepers out there. I have recently come into enough money to pay off debt ($60K) accumulated to fix up a house I tried to flip and failed due to the reversal in housing market. My question is: Is it wise to pay off debt when it appears inflation is around the corner? Would it be better to invest in commodities, as the dollar looks set to nose dive? I keep reading that one should pay off debt first, but I'm not sure if that's the right move. Any thoughts/advice is much...

In the HEALTHCARE BILL HR 3200 there are two pages that are NOT just directed at Seniors, but your bank account. On page 58 there is Government ID CARD, with all your information on it. On page 59 there is provision for the US Gov't to electronically transfer money out of your account, from your bank account. (paraphrased) I do not believe it is age specific.

Dear Carrie: I have over $600,000 in CDs at 3 percent interest. I have a mortgage balance of $100,000 at 5.125 percent. Would you advise that I go ahead and pay off my mortgage or leave the money in CDs? -- A Reader Dear Reader: On the surface, the answer to your question might appear to be a simple calculation. But in reality, the decision to pay off a mortgage can be more complex. So I'm going to start by posing a few more questions that you may want to factor into your decision. For instance, how many years are...

WASHINGTON (AP) — House members and their families suffered through investment losses like millions of Americans last year, a sampling of financial disclosure statements showed Wednesday. The economic downturn also sparked some cautionary moves. Speaker Nancy Pelosi's husband, Paul, reported capital losses between $100,001 and $1 million when he sold stock in American International Group, the insurance giant given a hefty federal bailout. ~snip~ Rep. John Murtha, D-Pa., known for dispensing pet projects to his western Pennsylvania district, lists his largest asset as $50,001 to $100,000 in Wesbanco, a bank holding company.

Stephen Bloom, a lecturer of economics and personal finance at Messiah College and an estate planning attorney, has identified 10 building blocks for solid financial foundations. His list: 1. Make the World's Best Investment You can search for a lifetime, but you won't lock-in a better return on investment than you get by simply paying off your high-interest debt. 2. Work Your Butt Off Sorry, there's no substitute for plain old hard work. 3. Have Fun Spending Really, it's OK! But do your spending according to a plan. You can call it a budget, but calling it a spending plan...

One of the biggest causes of the financial crisis was that Americans were borrowing (and spending) more money than they could afford to pay back. So how are credit-card issuers reacting to consumers' attempts to live a more financially responsible lifestyle? They're threatening to cut their credit cards off if they don't spend enough. Loretta Maxwell of Troy, Mich., thought her credit score of 790 buffered her against most of the fallout of the credit crunch. When Chase (JPM) closed her $6,000-limit card in December without warning after two years of inactivity, she called to fight it. She was unsuccessful....

Recently I assisted two separate couples whose stories are so remarkably similar that it suggests more than coincidence. I was right. There is something going on. Both are working couples with children, and each has a good education. Both wives were hospitalized, had lengthy absences from work, and both fell behind on their mortgage payments. That's bad enough. But what their mortgage service company did to them next is where our story really begins. This should be required reading for everyone with a mortgage. Sub-prime lending is really most of us. It is a category of borrowers with a broad...

During the worst economic crisis in a lifetime, the right financial decisions are crucial. BusinessWeek asked financial planners for some advice on what to do—or not to do—with your money in the New Year. As we bid farewell to a dreadful 2008, these "resolutions" may help keep your finances on the right track in 2009: 1. Don't try to predict the future. "We are currently in the midst of unprecedented and complex challenges," says Femi Shote of Asset Harvest Group in McLean, Va. Anyone who thinks he or she can predict what's going to happen is "delusional," Shote says. Financial...

I have a friend who is a genuine legend in the currency trading business. He retired last year, but before that we worked closely together at one of the largest hedge funds in the world where he was a founding partner. We were talking about politics early in the 2008 presidential campaign and he said that while he preferred a Republican for the well being of the country, the mercenary side of him could be content if the Democrat was elected as well. Hearing him say so really surprised me. My friend was a financial supporter of the “American Enterprise...

The market slump isn't just shredding millions of college funds and retirement accounts. It's also shredding the financial playbook that many American families had come to rely on to protect and grow their savings. Think of all the rules and beliefs that worked reliably for decades, and which have been trashed in the last year.