Investing refinancing cash.QA I'm a 44-year-old IT professional earning $70,000 a year. I own a four-unit building that I'm refinancing Refinancing An extension and/or increase in amount of existing debt. to get cash. I have no savings. What would be the best mix of stocks and real estate for a $30,000 investment? --D. Hill Baltimore At age 44, with a $70,000 salary and a four-unit building, it's alarming that you don't have anything saved toward your retirement. Check to see if your employer offers a 401(k), 403(b), or 457 retirement plan and join it during the next enrollment period. We at BE suggest you save 10% to 15% of your income, but you must balance your living expenses and the cost of your newly refinanced mortgage against the amount you save each pay period. Hold off on acquiring more real estate with the $30,000 you'll receive after refinancing until you can maintain a steady stream of income from the extra apartments in the building you own; you don't need another mortgage right now. Place $20,000 of the refinance Refinance 1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. money in six-month certificates of deposit. (Go to Bankrate.com's "100 highest yields" page: www.bankrate .com/brm/rate/high_ratehome.asp.) Or consider an online savings account An online savings account (OSA) is a savings account managed and funded exclusively on the Internet. OSAs are often characterized by high yields, which far surpass those of traditional savings accounts. with ING Direct ING Direct is a branchless direct bank with operations in Austria, Australia, Canada, France, Germany, Italy, Spain, United Kingdom and the United States. ING Direct is part of the ING Group. It offers services over the Internet, phone or by mail. , which yields 2.0%. This will keep your money liquid enough for emergencies or for when you want to buy the next property. Use the remaining $10,000 to open a variable annuity Variable Annuity An insurance contract in which, at the end of the accumulation stage, the insurance company guarantees a minimum payment. The remaining income payments can vary depending on the performance of the managed portfolio. account that has investment subaccounts. You call arrange to borrow against this account in an emergency, but it should be committed to retirement only. Mail your money management questions to Ask B.E., BLACK ENTERPRISE, 130 Fifth Ave., New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , NY 10011 or send an e-mail to scottm(@blackenterprise.com. |
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