Totally Fake Reader Mailbag Edition

Totally Fake Reader Mailbag Edition

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Image: – Male Military Spouse Rob Aeschbach paraphrases discussions had about money with family, friends, and co-workers – Macho Spouse

 

RobSitePic.jpg[These aren't real questions that avid readers have sent in, yearning for my sage advice. I'm just paraphrasing some discussions I've had about money with family, friends, and co-workers]

I just changed jobs. Should I leave my 401(k) with my old employer, or roll it over to my new employer's 401(k) plan?

No.

You shouldn't do either. You should rollover your old 401(k) into an IRA with low-cost mutual funds, like Vanguard. There are 2 main problems with 401(k) accounts in general:

 


First, the investment choices they offer are usually going to be fairly limited. They might not even have index funds. Opening an IRA with someone like Vanguard, Charles Schwab, or Fidelity gives you access to just about all of the mutual funds each company offers. It's like comparing a state-run grocery store in the Soviet Union to a well-stocked Wal-Mart in the United States.

(Click here for the rest of Rob's blog)

 

Rob Aeschbach is a male military spouse who spent 12 years as an active duty Marine before becoming a Navy spouse. Since then he has been a stay-at-home-dad for more than 10 years, served in the Marine Corps Reserve until his recent retirement, and started a personal finance blog.

See also...

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Do You Know Your American Flag Protocol?

Did You Know?

Did you know that American Flag Protocol (or American flag etiquette) is actually part of federal law? It provides general guidelines to answer some common questions about how the American flag should be handled and displayed. Although it is federal law, there are no federal penalties imposed for failures to comply with the law. 

While stationed at Los Angeles AFB, I drove by this motel on the way to work one morning and I noticed that the US flag was flying upside down. People were entering and leaving the building as if nothing was wrong. So, I pulled in and asked one of the workers if everything was okay in the building and I notified him that they were dislaying the flag upside down. He said everything was cool and he fixed the flag immediately, but he didn't understand why I was asking if everything was okay. So I explained to him that a US flag flying or displayed upside down is a distress signal (extreme danger to life or property)

Did you know that a US flag flying or displayed upside down is a distress signal?

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What Does 'No Money Down' Really Cost?

FlagHouse.jpgIs it possible to buy a home with no money down? If you or your spouse qualifies for a VA home loan, the answer is yes. VA home loans are a special benefit available to current and ex-members of the U.S. military only and they can save homebuyers a lot of money. Veterans and active members of the U.S. military are eligible for some of the lowest interest rates on the market but that's not the only way VA Loans save buyers money. VA Loans are also "No Money Down" home loans.

Understanding "No Money Down"

"No money down" means homebuyers don't have to provide a down payment to obtain a VA Loan. Traditional mortgages or home loans require as much as 5% to 20% of the purchase price as a down payment on a home. On a $200,000 home that is between $10,000 and $20,000 that must be provided at the closing. Saving up that much money for a down payment is a huge stumbling block for many would-be buyers. They may have the credit and income qualifications needed to obtain a home loan, but just can't come up with the down payment. Too often they end up not buying their own home or they miss out on the home they really want.

The VA Loan program changes that and makes homeownership more accessible by waiving the down payment requirement. VA Loan mortgage lenders are willing to forego this requirement because VA Loans are backed by the U.S. Government. This minimizes the risk to lenders if a buyer defaults, which is one of the primary reasons down payments are typically required.



 

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