The Help Desk

Does it make sense to put a lump sum into a 401(k)?

Do companies match lump-sum contributions to your 401(k)? If not, does it still make sense to put a lump sum into a 401(k), provided you could still afford to make regular payroll contributions to the plan throughout the year to take advantage of company matches? -- Eric B., Charlotte

Check with your employer's plan to see what is and isn't permitted. Federal law doesn't govern the speed with which employees can hit MORE

Does it make sense to convert to a Roth IRA while I'm living on my savings?

I am 50 and have decided to take a gap year—a year off work to refresh and recharge before the final push to retirement in about 10 years. During this year, I'm going to live on savings that have already been taxed. Generally speaking, I will have little or no taxable income. Does it make sense for me to convert conventional IRA funds to Roth IRA funds this year? My MORE

How can I get financing for a small business start-up?

I want to establish my own design/production company that utilizes the benefits of 3-D printing technology. My main hurdle right now is financing. My home was recently foreclosed on, so my credit is not great. I want some ideas on finding potential sources of financing. Since this company will be creating jobs in manufacturing, are there grants or loans I can utilize? —Aaroon Sadat, San Ramon, Calif.

You may have a great MORE

What's the best savings account for a very young child?

My infant daughter, who is not quite 1, has a piggy bank that already contains over $200. I want to open an account that will grow for her and that she can use starting around the age of 18. As money is contributed to her piggy bank we plan to take it out and add it to her investment account. For such long-term savings, with what will likely be minimal MORE

Should I buy individual bonds or bond funds?

I have 40% of my portfolio in bond funds. Should I instead buy individual bonds to hold to maturity? — Rick W., Concord, N.H.

With individual bonds, you know exactly what you'll collect every year and what you'll get back when the bond matures. A fund can't promise that. But buying bonds from a broker can be a problem. "The pricing you'll get is terrible," says Annapolis planner Ted Toal. Institutions buying MORE

What are some good low-cost index funds for my IRA?

I want to start an IRA with low-cost index funds. Are there any with minimums as low as $1,000? —Jason Hartman, Canoga Park, Calif.

You can find what you're looking for at Charles Schwab, which offers several low-cost stock and bond index funds with investment minimums of only $100 (for either IRAs or taxable accounts) and no upfront fees.

Or, instead of piecing together multiple funds yourself, you can get an entire index MORE

Should I make a smaller down payment on my home, and invest the rest?

If I buy a home, should I make a tiny down payment and invest the difference? — Chris B., Livonia, Mich.

With 30-year mortgage rates around 4%, that's tempting. In place of a big down payment, you could write a small check, borrow the max, and invest your unused down payment funds in the hope of earning more than the interest you're paying.

There are some catches, though. A 3.5% down payment MORE

Do I have to claim reinvested dividends as income?

I have shares of a stock that pays quarterly dividends. At the end of the year, I get a 1099-dividend statement and I usually add the dividends to my taxes as income. This year I noticed that I reinvest all my dividends. So do I have to claim this as income? —- Name withheld

Reinvested dividends are considered income—so you do, in fact, owe tax on them. On your 1099 statement, MORE

Is it better to apply savings bond income to student debt or tuition?

My daughter is close to graduating from college and has some student loans. She thinking about cashing in some savings bonds to apply to these debts. Wouldn't it be better, tax-wise, for her to cash them in before graduation, and apply the funds to her last semesters' tuition? - Name withheld

Cashing in the bonds to pay for her tuition is a solid choice. Not only will that reduce any MORE

What should I do when my term life insurance policy expires?

I will be 75 years of age in August. I have a $500,000 term life insurance policy that ends in 2014. I can renew it, but the premiums are so large (over $1,000 per month) that I can't afford them. Are there any other options? I have had surgeries for bladder cancer, but otherwise healthy and active. -- Orville Thompson, Kamuela, HI

One possibility is asking your MORE