The Help Desk

Should I keep my government insurance and Medicare Part B?

I am a retired federal employee. As such, I have health insurance through the Federal Employees Health Plan. Since I am over 65, I also have Medicare Part B, for which I also pay a premium. Medicare Part B is my primary and the insurance provided by the U.S. government is secondary. Which would be more advantageous: keeping both insurance plans, or dropping the Medicare Part B? -- Allan, Knoxville, Tenn.

As MORE

Should I close the credit card accounts I never use?

I have a large number of open credit card accounts with $0 balances. I open them for the promotional offers, and then I pay them off and never use them again. I was advised that if I close them, I would lower my credit score. I only have one credit card that I use. How can I handle this without lowering my credit score? –- Name withheld You heard correctly—closing unused MORE

How do I know what my adviser is charging me?

I currently work with a financial adviser and I have no idea what he is charging me for his services. I have seen some fees come out of my small cash account that I have with him. I know there must be more than that, but the statements are confusing. Should he provide this information to me annually? —- Name withheld

The short answer to your question is yes—an adviser should provide MORE

Do I have to pay taxes all year?

Can I keep my tax withholdings throughout the year and earn interest off of the money, then pay my taxes at the end of the year? This way I would earn interest off the money, rather than the government. — Gabe Scherer, St. Louis, MO

Sure you can -- as long as you don't mind paying interest and penalties to the IRS in April due to underpayment of taxes. "If you MORE

Is it smart to hold mutual funds and individual stocks in a traditional IRA?

Is it really wise to hold mutual funds or even individual stocks in a traditional IRA? Given the current 15% tax rate on capital gains versus a 25% personal tax bracket, it would seem better to hold all capital gain-producing financial vehicles either in a Roth or in a taxable account. --Name withheld

You are asking why you should pay 25% on earnings in an IRA when you withdraw, when you could MORE

Will it help or hurt my adult child's chances at financial aid if I claim her on my taxes?

I am the father of a 22-year old who works part time and attends college part time. I typically claim her as a dependent every other year and her mother (whom I have never married) claims her when I don't. I'd like to know is whether it would be more beneficial for financial aid purposes to claim her as my dependent for 2011 or to allow her to MORE

What is the right kind of life insurance for someone with a disabled spouse?

I'm a married 45-year old stay-at-home mom; my son is four. My husband is disabled, works full-time (as a physician), and I am his main caregiver. He's a federal employee, and has good health insurance, as well as life and disability insurance. His disability is not life threatening, and financially we're fine. But his disorder is progressive. I take care of him after work and on weekends. If anything happens MORE

What can I do for a child who is a victim of ID theft?

I recently took my 10-year-old daughter to open her first bank account. The bank officials warned me she is the victim of identity theft. Somebody opened and abused a bank account using her social security number in Everett, Wash.

I need to learn how I can monitor her identity (or credit) in addition to her two brothers (all under the age of 18). I tried using identity/credit monitoring services, however, it MORE

Should a new investor use a broker or purchase stocks directly?

I am a new investor and am interested in purchasing stocks. Would it be smarter for me to use a broker or purchase them myself? -- Name withheld

We applaud the idea of building an investment portfolio, but let's back up a second here. Broker issue aside, purchasing individual stocks as a new investor could leave you, well, broker than you started. After all, you don't want to buy shares MORE

How do I close old credit card accounts without hurting my credit score?

I have gotten a few credit cards — which I pay off each month—because they will allow me to gain free travel. Now, however, I feel I have too many, and I'd like to close some of them. How do I do that without hurting my credit score (now 766)? Is there a formula or a method of determining which ones are less likely to ding my score?

 --Name withheld

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