wnyc.org / 93.9fm / am 820

Love your show Brian!
We expect to receive some pre-inheritance money from my inlaws over the next few years. What are the tax laws regarding amounts per year and are there any options to avoid taxation but still allow access?
Thanks. Tiffany

For next week's segment with Alvin Hall segment
Two-part question on long-term care insurance

I am a 48 year-old, white woman in very good health. I have minimal behavioral or genetic factors that put me at risk--for the foresee- able future--of becoming incapacitated due to illness. Only my father's Parkinsons (diagnosed at age 80) required assistance -- in his final 18 months. But, I'm not immune to illness or debilitating events.

I am single with no children. I'd prefer to protect my assets, and maybe could pay out of pocket for a very short period. I intend to buy a plan with benefits compounded 5% annually.

1. Is it appropriate to buy LTC insurance now? It feels a little premature in my 40’s (Don’t most people wait until late 50’s/early 60's?). But there are health and financial risks (and higher premiums) if I wait 10 years. So it seems like a prudent thing to do. What’s your opinion?

2. Assuming I buy LTC insurance, should I get a lower level policy and pay later to upgrade benefits, or should go for the best plan now?

Alvin mentioned that he used to teach a course called "Your Money or Your Life" - is this the Joe Dominguez/Vicki Robin program? If so - what does he think about the Treasury Bonds they suggest as safe investments? Today the rates aren't what they used to be.

Would it be more fiscally responsible to pay off my over 50,000$ private sallie mae loan (high interest rate) or put that money into a downpayment for a house in nyc? right now i am paying interest only around 600/mo.
thanks,
c in Manhattan

If the government is assisting Citigroup and other banks for their losses, doesn't that directly interfere with the free market by reducing the need banks have for market-based infusion -- such as CDs -- thereby unfairly reducing the interest rates banks would pay for customers to buy their CDs? If so, is that illegal or could it be argued so? After all, if the government pulled all direct aid (inlc. tax aid) -- wouldn't CDs and other investments become GREAT ones??

How about pulling your money out of a Roth IRA for a house purchase....will that also get taxed in that year?

Thanks for having Alvin Hall on! He's explaining things which i was NEVER able to understand! I'm going out to buyhis book now! Thanks!

I am interested in Buying a house. Where she I invest my money for a down payment. I am about 4-5 years away from buying and will begin saving 1000/mo in Jan.

Great Show - I want Alvin's book! I try hard not to buy anything that I will not prepare in time/can't freeze because I noticed that, too. But Alvin you outdo my mother who I thought was the queen of knowing how to use money. Brilliant!!!

Interesting point on grocery shopping: I find I spend *less* when I shop online with peapod.com or an equivalent service. Not being in the store, browsing the aisles and making impulse purchases really makes a difference.