Chat transcript: Calming Financial Fears

The following is a partial transcript of a live chat during "Calming Financial Fears: A 10 Town Meeting" on Sept. 19, 2008.

The guest was Assistant Professor Jeanne Haser-Lafond of Rhode Island College.  She answered questions on a variety of personal finance topics.

softdog says to (2008-9-19 17:32:30):
hi. i have about 3 different college loans. I'm paying an OK rate on 1 of them. Would you recommend folding them all into 1 loan? Are interest rates low enough?
NBC 10 Guest says to (2008-9-19 17:32:30):
i would compare the payments under the current scenario with the results you might expect under a consolidation loan. http://www.risla.com is a good site to check out.
softdog says to (2008-9-19 17:32:30):
cool thanks
NBC 10 Guest says to (2008-9-19 17:32:30):
you are welcome
kreis says to (2008-9-19 17:32:45):
How is it going?
kreis says to (2008-9-19 17:33:30):
I have a house with a variable mortgage. Will my payment go down or up?
kreis says to (2008-9-19 17:33:55):
I have a house with a variable mortgage. Will my payment go down or up?
Oliveria says to (2008-9-19 17:36:29):
Hi
NBC 10 Guest says to (2008-9-19 17:40:9):
As interest varies with interest rates, your payments will depend on what happens with interest rates. They could go up or down.
softdog says to (2008-9-19 17:40:10):
i just bought a house a year ago. When is a good time to re-finance?
softdog says to (2008-9-19 17:40:19):
i just bought a house a year ago. When is a good time to re-finance?
NBC 10 Guest says to (2008-9-19 17:43:17):
If you refinace, you need to consider your existing rate, what the new rate is and how long you intend to stay in the house. Also refinancing may save you money on a monthly basis, it may end up costing you more interest in the long run.
jester says to (2008-9-19 17:45:2):
this question is for rih is my mortgage safe i am a 1st time home buyer and thanks to rih i can have my own home
jester says to (2008-9-19 17:45:9):
this question is for rih is my mortgage safe i am a 1st time home buyer and thanks to rih i can have my own home
softdog says to (2008-9-19 17:47:28):
my wife's retirement is rolled into a TIAA-CREF. What can you tell me about that? Could something happen where she would be hurting in a similar financial crisis that's been going on?
softdog says to (2008-9-19 17:47:33):
my wife's retirement is rolled into a TIAA-CREF. What can you tell me about that? Could something happen where she would be hurting in a similar financial crisis that's been going on?
NBC 10 Guest says to (2008-9-19 17:51:56):
softdog, if her retirement funds are in TIAA CREF, hopefully she has spoken to an investment advisor about the proper allocation of those funds for your family goals and needs. The funds in any of these programs are invested in mutual funds and other investments that should allow for some spreading of risk.
jcurran says to moderator (2008-9-19 17:53:41):
Hi Jeanne, I can see you on the tube.
NBC 10 Guest says to (2008-9-19 17:53:43):
jester- your mortgage is a liability that is not subject to the kinds of risk that assets (such as investments and other assets have...like loss of value)
L says to (2008-9-19 17:53:53):
Hello, do you have advice for those on lower incomes? Most advice seems to be geared to those who are middle income. How can we possibly find ways to save for the future right now?
L says to (2008-9-19 17:54:1):
Hello, do you have advice for those on lower incomes? Most advice seems to be geared to those who are middle income. How can we possibly find ways to save for the future right now?
kdanis1953 says to (2008-9-19 17:54:3):
I will be retiring in January 2009. I have a pension and 401 plan. I'm taking taking early retirement. shoudl I be concerned about going early with this
NBC 10 Guest says to (2008-9-19 17:54:27):
as long as you continue to pay your mortgage, your home should not be jeopardized
jester says to (2008-9-19 17:54:30):
thank you
kdanis1953 says to (2008-9-19 17:54:34):
I will be retiring in January 2009. I have a pension and 401 plan. I'm taking taking early retirement. shoudl I be concerned about going early with this
jester says to (2008-9-19 17:54:37):
thank you
softdog says to (2008-9-19 17:54:44):
im pretty young (31). what would you say to those people who are just starting out. My wife and I don't have a lot of money to invest, and we're hesitant because of the current market
NBC 10 Guest says to (2008-9-19 17:54:50):
you are welcome
Joyce says to (2008-9-19 17:55:59):
Can you talk about the importance of asset allocation between large, mid and small cap stocks?
frenchie8560 says to (2008-9-19 17:57:14):
ok. so the "government" is going to be bailing out the failing companies with 1.1 trillion dollars. we the people are flipping that bill which in turns ends up being approx. $3500 p/person in this country. well, how are the people in this economy who can't afford to pay their homes, food, heat, gas, etc going to afford an additional $3500 out of thier pockets?
NBC 10 Guest says to (2008-9-19 17:57:27):
kdabus1953--you should talk to an investment advisor or financial planner to be sure that the retirement funds that you do have are adequate to meet your needs for what you expect will be the rest of your life. You may need to examine several alternatives to achieve a comfort level.
Joyce says to (2008-9-19 17:57:36):
Can you talk about the importance of asset allocation between large, mid and small cap stocks?
moderator says (2008-9-19 17:58:56):
Please be patient, we have a few questions waiting, our guest will get to your question soon
Oliveria says to (2008-9-19 17:59:28):
What about Fidelity Eqity fund should i take it out?
NBC 10 Guest says to (2008-9-19 18:0:26):
it is important to allocate assets in a way that suits your risk tolerance. The small caps can often be riskier or more volatile thus the percentage that you place in riskier categories should generally be less to be safer.
Oliveria says to (2008-9-19 18:0:35):
What about Fidelity Eqity fund should i take it out?
Joyce says to (2008-9-19 18:1:38):
are large cap stocks riskier right now when compared to mid cap?
Joyce says to (2008-9-19 18:2:47):
are large cap stocks riskier right now when compared to mid cap?
auntiecol says to (2008-9-19 18:4:21):
Hello, I am currently unemployed due to cancer. Do you know of any debt consolidation companies in RI? All my credit cards are starting to send me letters and calls. I haven't had any money to pay. Debt consolidation online has been scams on me. I am looking for someone locally to help me out.
casmis says to (2008-9-19 18:4:28):
I am 66 yrs old and retired my husband is 60 yrs old and we hope that he can retire in about 4 yrs. This will be the time I have to draw on my 401k. We both have our 401k in Fidelity. 50% in stocks, 40% in bonds and 10% in cash reserves. Should we lower the 50% to 25% or 30% or just leave this alone and ride out the storm?
NBC 10 Guest says to (2008-9-19 18:4:48):
I am not invested in that fund and have not followed it. If it is down, as many funds are, people are sometimes tempted to get out. Remember that holding on to it for the long term may make sense if the long term outlook makes sense. I can not advise you as to specifics, you need to look at your overall position, goals, needs and risk tolerance. Financial planners can help you with that.
auntiecol says to (2008-9-19 18:4:54):
Hello, I am currently unemployed due to cancer. Do you know of any debt consolidation companies in RI? All my credit cards are starting to send me letters and calls. I haven't had any money to pay. Debt consolidation online has been scams on me. I am looking for someone locally to help me out.
NBC 10 Guest says to (2008-9-19 18:6:15):
Ri has consumer credit counseling and you may be able to get some better advice directing your question to them.
Oliveria says to (2008-9-19 18:6:16):
Ok thank you
casmis says to (2008-9-19 18:6:24):
I am 66 yrs old and retired my husband is 60 yrs old and we hope that he can retire in about 4 yrs. This will be the time I have to draw on my 401k. We both have our 401k in Fidelity. 50% in stocks, 40% in bonds and 10% in cash reserves. Should we lower the 50% to 25% or 30% or just leave this alone and ride out the storm?
auntiecol says to (2008-9-19 18:6:41):
HOw to I get in touch with consumer credit counseling?
keh says to (2008-9-19 18:8:46):
In your opinion, do you think John Hancock is in good condition. My annuity is with them but I'm not ready to withdraw till 2011.
auntiecol says to (2008-9-19 18:9:24):
HOw to I get in touch with consumer credit counseling?
NBC 10 Guest says to (2008-9-19 18:10:27):
It is difficult to say, generally investors like to move toward safer investments as they approach retirement. As stocks have dropped significantly lately, you may not want to choose the current time to move assets . You need to consider other things-ie social security, other sources of income, your cash needs in retirement., and your life style.
NBC 10 Guest says to (2008-9-19 18:11:27):
http://www.moneymanagement.org is the web site for the consumer credit counseling
keh says to (2008-9-19 18:11:34):
In your opinion, do you think John Hancock is in good condition. My annuity is with them but I'm not ready to withdraw till 2011.
auntiecol says to (2008-9-19 18:11:39):
thank you
auntiecol says to (2008-9-19 18:11:47):
thank you
NBC 10 Guest says to (2008-9-19 18:12:1):
there is a lot of great information on the AICPA's site for the 360 degrees of financial literacy.
NBC 10 Guest says to (2008-9-19 18:12:22):
in general, everyone can get a wealth of financial information about fiscal fitness from this site
NBC 10 Guest says to (2008-9-19 18:12:40):
http://www.aicpa.org/financialliteracy/index.asp
keh says to (2008-9-19 18:12:47):
thank you
paulm says to (2008-9-19 18:12:53):
i have my 401k at work with diversified and ihave more then 20 years to retire i belive my investments are spead out am i safe
keh says to (2008-9-19 18:13:6):
thank you
paulm says to (2008-9-19 18:13:9):
i have my 401k at work with diversified and ihave more then 20 years to retire i belive my investments are spead out am i safe
paulm says to (2008-9-19 18:14:4):
or should i get out now
paulm says to (2008-9-19 18:15:21):
or should i get out now
JJ says to (2008-9-19 18:15:29):
How safe is Bank of America and who owns it?
NBC 10 Guest says to (2008-9-19 18:15:36):
i can not comment on individual companies, Hancock has been around for some time and while you can check ratings through groups like A.M. Best to get some guidance on their standing
paulm says to (2008-9-19 18:15:38):

i do not see any answers to my questions
JJ says to (2008-9-19 18:15:45):
How safe is Bank of America and who owns it?
NBC 10 Guest says to (2008-9-19 18:15:46):
Paul M
paulm says to (2008-9-19 18:16:10):
ok thank you
NBC 10 Guest says to (2008-9-19 18:16:20):
sorry, Paul, I hope you are safe, being diversified and having a long term plan is the way I would go.
NBC 10 Guest says to (2008-9-19 18:16:43):
It makes sense, Paul, to review the allocations periodically with a knowledgeable professional
paulm says to (2008-9-19 18:17:8):
thank you
paulm says to (2008-9-19 18:17:43):
thank you
JJ says to (2008-9-19 18:18:32):
Would anyone comment on Gov. C's statement about taxes not going up, yet RIDE (for seniors) is now charging $4. /round trip or $20. per week. I personally know seniors that are now going to drive again!
NBC 10 Guest says to (2008-9-19 18:20:55):
Individual companies, JJ need to be solvent and profitable to succeed in the long run. Banks and financial institutions have had a tougher time in the market in recent months. Many economists have been surprized at some of the recent turns in the market, no one knows or wants to speculate about the stock. If you hae funds in the bank, the FDIC insures deposits up to a certain sum- thus there is safety in that insurance.
JJ says to (2008-9-19 18:24:37):
Yes, thank you.
JJ says to (2008-9-19 18:24:43):
Yes, thank you.
NBC 10 Guest says to (2008-9-19 18:25:4):
you are welcome
NBC 10 Guest says to (2008-9-19 18:26:22):
another great website http://www.mymoney.gov/
JJ says to (2008-9-19 18:27:50):
Is this set up to see what everyone is typing?
kwanyinri says to (2008-9-19 18:27:57):
who can we talk to about our interest only mortgage? Worried about not being able to keep up payments.
kwanyinri says to (2008-9-19 18:28:4):
who can we talk to about our interest only mortgage? Worried about not being able to keep up payments.
NBC 10 Guest says to (2008-9-19 18:28:46):
try http://www.riloans.com to see if there are any there
NBC 10 Guest says to (2008-9-19 18:29:3):
we are running out of time, so i can't ask one of the panel and i don't know offhand
kwanyinri says to (2008-9-19 18:29:35):
thanks - we are in a negative equity situation and credit has gotten bad for a variety of reasons - thanks
JJ says to (2008-9-19 18:29:38):
Thanks again for your time.
pgrassick says to (2008-9-19 18:29:53):
I was a Federal employee for more than 20 years, contributing to and receiving matching contributions in my Thrift Savings account, until April when I was fired by U.S. Attorney Robert Corrente because of my disability. When my removal was proposed, I quickly moved my entire account into government securities, so I haven't lost anything since my firing. Now that stock prices are low, I'm tempted to take a portion of my money and move them into an International or Technology fund. Thanks.
moderator says (2008-9-19 18:30:53):
Thank you for joining our Live Chat. You can find a transcript of the chat online later night. Thanks to our guest Professor Jeanne Haser-Lafond