Question:  How can I find out which Transit / ABA number belongs to which Bank?

Question:  Which bank provides the best interest for a checking account?

Question:  Is there a web site that lists new and used car prices?

Question:  If I buy a car that costs $15,000.00 and finance it for 60 months at 5% interest, what will be my monthly payment?

Question:  What does JTWROS stand for and what does it mean?

Question:  How do you use air miles for hotels?

Question:  Eight million lire is equal to how much U.S. dollars?

Question:  What is the web site for Consumer Reports?

Question:  In 1961, what was the price of gold?

Question:  What happens to a person’s belongings after that person passes away?

Question:  How do I calculate mortgage repayments on a spreadsheet?

Question:  If I put extra money towards my principal on my house mortgage, will my regular house payments actually start taking more off my principal or does the total original amount of interest still have to be paid off first? I am looking for a faster way to pay off my house and how this works with the principal and interest.

Question:  My retired parents have several small traditional IRAs (under $5,000 each) that they have never started distributions from. My parents are currently 76 years of age. What penalties do they face for not starting withdrawals at 70½? What should they do now that will adversely affect them the least? Thanks!

Question:  I know that an Education IRA is a good way to save money for a dependent's college expenses, but what about my own? Suppose I want to go to graduate school in four years. Can I save money in an Education IRA for myself? And suppose I (or my dependent) don't go to college; what happens to that money?

Question:  Hello. I need some advice please on even where to start looking for advice on my personal financial situation. I am totally lost and real close to desperate, (feel free to refer to me as "stupid", in further communications). The short…..short…

I am 47 years old. I am divorced for 2 years after 20 years of marriage am still good friends with my ex-wife. I have 3 kids and a $45k job in good standing. I have $50k credit card debt and am paying $950 on mortgage monthly on a house valued at approximately $120k for 16 years to date.

I have a Schwab 401k plan. It was worth $45k 6 months ago…now….?????? I am working on 4^th heart attack. My question…I need advice on selecting an advisor to direct me on how to get out of debt. Thanks.

Question:  How do I file a tax extension?

Question:  I seriously can't remember what the current US postage stamp rate is. Is it $0.33 or $0.34? Thanks.

Question:  I know that one can deduct from 1% to 18% out of one's salary in order to have it placed in your 401(k) savings plan. My math has always been horrendous and I am wondering if there is a web site or some way to figure out from one's salary, how much is 1% to 18% of that salary?

Let's say I make $20,000.00 a year and I want to figure for myself what I wish to have deducted from my salary so I don't overextend myself - so how can I figure out of a salary of $20,000.00, what is 1% extracted, 2% extracted all the way to 18%?  Thanks!

Question:  What is the current exchange rate for Francs to Dollars?

Question:  How much would $10,000 in 1939 dollars be worth today - not invested, just indexed for inflation?

Question:  Beginning 2001, will there be a 18% capital gains treatment for stocks held over 5 years?

Instead of buying the book, I am going to guess that your bank will probably have a copy and that would be the best place to check. If your bank does not have a copy, you can check your local library. Typically, when you are going to wire money, you need the Transit/ABA number plus the person's name, the person's account number, and the name of the bank. A person should give you this information if they want you to transfer money. If this person has not given you this information, you should ask for it. If this person has given you this information, you can then call up the bank directly to verify the accuracy of the account.

Answer:  Http://www.bankrate.com is a great website to visit. This link to their website will let you search their website for banks by city: http://www.bankrate.com/alb/rate/BRM_bizdSEARCH.ASP. This link to their website will show you the best checking rates in the top 35 markets: http://www.bankrate.com/brm/news/chk/20001002h.asp. This link will show you the best rate at the top 20 Internet banks: http://www.bankrate.com/brm/news/chk/20001002g.asp. This site also has interesting articles to read about what to look for in opening up a checking account.

Answer:  Yahoo has a great site where you can get this information. On your address bar, type in http://autos.yahoo.com. It will take you right there. They use information from Kelley Blue Book and Edmunds.com.

Answer:  The approximate monthly payment will be $283 per month. Thanks for the question.

Answer:  JTWROS stands for Joint Tenants With Rights of Survivorship. It represents a type of title to an investment or an account. There are many ways a JTWROS titled account works, but let's take the most simple, most common example. A JTWROS is often set up between two people. Both people have an ownership interest in the account and it usually is 50% each. If one person passes away, the other person will receive all the assets in the account. This contrasts with a Joint Tenants in Common (JTIC), where the assets of the deceased person go into that person’s estate and not to the other joint tenant.

Like a trust, a JTWROS account avoids probate. A will does not avoid probate. A JTWROS is a simple form of ownership and is very easy to set up. This is a major positive. There is no cost to title an asset with a JTWROS. It allows someone to easily designate who will receive their assets should they pass away. The other primary vehicle that allows this feature is a trust. But, a trust can be expensive to set up and is more restrictive. You typically assign the title and fill out the appropriate forms when you open up the account. You can use JTWROS for bank, stock accounts, real estate, and most other types of accounts.

There are several negative features about titling with JTWROS. Normally, when a person passes away, there is a step-up in cost basis to full market value on the assets that the person holds. In a JTWROS account, there may not be a step up in basis on that portion of the person’s assets, who passed away. Thus, it may not be appropriate to place assets that currently have a low cost basis or are expected to appreciate greatly in the future. Second, the setting up of JTWROS accounts may be considered a gift from one person to another. This could result in a gift tax and/or the inclusion of most or all of the assets in the deceased person’s estate. This could result in greater estate taxes. Third, if you have a high net worth or are anticipating having a high net worth in the future, the use of a JTWROS account may not be the best way to save on estate taxes.

To summarize, a JTWROS account is easy and cost free to set up. It avoids probate and effectively allows the transfer of assets to another person. It is appropriate for simpler situations. For more complex situations, for situations where a person wants to direct the distribution of his/her assets long after he/she passes away, for estates that are over $1,000,000, and for accounts that hold low cost basis assets, a trust may be more appropriate.

Answer:  Many, but not all, airmiles programs let you earn airmiles by staying at participating hotels. Many airmiles programs also let you use your airmiles to get discounted or free rooms at participating hotels.

If you are currently in a program, the best way to find out if your program allows you to use your airmiles for hotel rooms is to 1) read the regular promotional material that they send you in the mail or 2) call them up. If they do allow it, they will explain to you how the program works and how you can redeem the miles. Typically, it is very easy and you can redeem the miles over the phone. The miles can be used to get a discounted room or even free rooms at participating hotels if you have enough airmiles. Not all airmiles programs allow this, though.

If you are currently not in a program, there are many ways you can get into a program. Most airlines have airmiles programs. Next time you fly, just ask the ticketing attendant how to join or talk to their customer service representatives over their customer service telephone line. There are also other programs that allow you to earn miles. For example, many credit card companies offer free miles. Every time you use the credit card, you earn free miles. MCI (long distance) also has a program that lets you earn miles every time you call long distance.

There are many other programs as well. A search on Yahoo for "frequent flyer miles" will show you other ways.

Answer:  I am going to assume this is Italian lira. Eight million lira is worth about $3,890.

Let me tell you how I did this. I went to Yahoo Finance. Under international investing, I chose "exchange rates". I then asked how much $1 is worth in Italian Lira. The answer was $1 = 2055.71 Italian lira. Next, I divided 8,000,000 by 2055.71. This gives approximately $3,890 American dollars.

Answer:  The website is http://www.consumerreports.org.

Answer:  In 1961, the price of gold was fixed to $35/ounce but it did fluctuate a little above and below that amount. For some interesting articles, you can visit Yahoo and do a search for "price of gold in 1961" and then click on "web page matches" at the bottom of the search page. The first three or four choices, that Yahoo shows you on the next page, talk about the history of gold prices with the eventual abolishment of gold being tied to a fixed dollar amount of $35/ounce.

Answer:  The answer depends on many different factors. The presence of a will or trust is very important. A will or trust lists the plans for the distribution of the assets. A properly written trust contains specific instructions for the exact distribution of the assets and helps to avoid probate. A trust contains an executor who is responsible for the proper distribution of the assets. An executor is considered a fiduciary under a court of law. A will also contains instructions, which may contain specific instructions or very general instructions. It does not prevent probate.

Probate is where the government decides how the assets are distributed to the beneficiaries. The government will usually follow the directions in the will. If there is no will, the estate is said to be "in testate". In this case, there are no instructions (a will) for the distribution of the assets. Again, the government decides how the assets will be distributed but must rely on other means, such as family members, to decide how to distribute the assets. Probate typically takes a long period of time, sometimes years. Probate is performed in a court of law. All information is public knowledge. The expenses of probate are also high. The value of the assets has to meet a certain minimum before they go through probate.

The way the assets are titled is also very important. If all the assets were in an account titled by Joint Tenants with Rights of Survivorship (JTWROS), then generally the assets are distributed to the surviving joint tenant. Assets inside a JTWROS account avoid probate.

If the assets are in an account titled by Joint Tenants in Common (JTIC), then the assets do not go to the surviving joint tenant. Instead, they go to the estate of the person that passed way. They then typically will go through probate if they do not pour over into a trust.

If the assets are in the person’s name only, these assets also go to the person’s estate and will then typically go to probate. In most states, there needs to be a small minimum net worth to go through probate.

In all cases, the distribution of the assets can be contested in a court of law. It is harder to contest the distribution of assets from a trust.

Answer:  I will explain how to do this using Excel. If you have Excel, that is great! If you do not, your spreadsheet program should work similarly to Excel and you can try to duplicate the actions. Open up Excel: Now, do the following.

1. Click on an empty cell.

2. Click on "Insert" on the top toolbar and choose "Function".

3. Click on "Financial" in the Function category.

4. Click on "PMT" in the Function name. A box will appear.

5. In the "Rate" category, enter your interest rate. If you are calculating monthly payments, divide your interest rate by 12. For example, if your mortgage rate is 7%, you can enter .07/12 in the box. Also, .07/12 = .005833 and you can enter .005833 in the box as well.

6. In the "Nper" category, enter in the number of periods. If you have a 15 year mortgage with monthly payments, the number of periods is 15 x 12 = 180 periods.

7. In the "PV" (present value) category, enter the value of the mortgage.

8. In the "FV" (future value) category, enter 0.

9. In the "Type" category, enter 1 if payments are made at the beginning of each period, and enter 0 or leave it blank if payments are made at the end of each period.

Hope this helps. If you have any follow-up questions, please write back.

Answer:  This is a good question and depends on the type of loan. In most cases, making additional payments each month goes directly towards paying off principal in the mortgage. By doing, this, you speed up the time upon which the mortgage will be paid off.

Here is how a typical mortgage works. With most traditional home mortgages, part of your monthly payment goes towards interest and part goes towards principal. In the early part of a mortgage, most of the payment goes towards interest and little towards principal. As time goes by and the principal begins to fall, more of the monthly payment goes towards principal and less towards interest. This is because the amount of interest due each month is dependent on the amount of principal. Less outstanding principal means less interest due. Near the end of the mortgage, most of the monthly payment goes towards principal.

When you make an additional payment on top of your required monthly payment, that extra payment goes straight towards paying off principal. This reduces principal and shortens the life of the mortgage. Future monthly payments now pay off more principal instead of interest. The more you prepay, the more principal you will reduce, and the faster you will pay off your mortgage. This represents a great way to pay off your mortgage.

Another great way to save money is to refinance the existing mortgage on your house. Interest rates have come down. If you can refinance and reduce your mortgage interest rate, you will have less interest to pay and more of your monthly payment that you are currently paying can go towards principal. When you refinance at a better rate, your monthly payment will drop. To pay off the mortgage faster, keep paying the same amount or more as you did with the original mortgage. You will be paying off more principal and will shorten the life of your mortgage.

Question:  My retired parents have several small traditional IRAs (under $5,000 each) that they have never started distributions from. My parents are currently 76 years of age. What penalties do they face for not starting withdrawals at 70½? What should they do now that will adversely affect them the least? Thanks!

Answer:  Let's see if we can save these IRA's. I will list several options you may want to consider. By IRS rules, for a traditional IRA, failure to make the required distribution results in a 50% tax on the amount that was not distributed on a per year basis. Based on these standards alone, your parents would probably lose most of the money inside the IRA's.

There are steps you can take, though. Here they are. First, the IRS allows you to request to excuse the tax if it was due "to a reasonable error and you are taking steps to remedy the insufficient distribution". Go to http://www.irs.gov. This is the IRS website. Follow the instructions on the website for obtaining publications. Print out Publication 590, page 35. This will explain what you need to do. You will also need Form 5329 and the instructions for 5329. All these forms are downloadable. You will also need Adobe Acrobat. If you do not have Adobe Acrobat, I believe you can go to Adobe's website and download it for free. You can also download it from the IRS website.

Next, you will need to write a letter to the IRS explaining what happened. I would also recommend talking to a tax accountant. They can help with the process and offer suggestions on what to do. There will be a fee for this service. It may be well worth it considering the amount of money there is at stake.

You can also talk to the IRS directly. Their phone number is (800) 829-1040. Call them directly and ask their advice. Contrary to popular opinion, they are very good at answering questions and helping people.

Your parents IRA’s are with some investment firm. Did the investment firm that was holding the IRA's ever inform your parents about the need to take distributions? Often, they will. You may want to call them and ask for help on what to do.

The important point here is that there is hope. The IRS is going out of their way to work with people on paying taxes. I think they will work something out with you. Hope this helps. If you have any further questions, please ask. Thanks for your question. Please let me know what happens when the situation is resolved.

Question:  I know that an Education IRA is a good way to save money for a dependent's college expenses, but what about my own? Suppose I want to go to graduate school in four years. Can I save money in an Education IRA for myself? And suppose I (or my dependent) don't go to college; what happens to that money?

Answer:  Here are some facts on the Education IRA:

1. Contributions to an Education IRA can only be made on behalf of someone who is under 18 years old. If you are over 18 years old, I do not believe you can open an Education IRA for yourself.

2. A person can use an Education IRA up until the age of 30.

3. An Education IRA can be rolled over to another family member, including parents, if a family member does not use it.

4. You can contribute up to $500 to an Education IRA per year per person. Each Education IRA has a beneficiary who is entitled to use the funds.

5. You are not allowed a tax deduction when you contribute to an Education IRA. But, the investments will grow tax deferred while the money stays inside the Education IRA. If the funds are used for qualified higher education, the withdrawals are tax-free as well. Qualified higher education expenses include tuition, books, fees and potentially room and board.

6. Typically, the person must be under the age of 30 to benefit from an Education IRA. If the person does not go to college, the Education IRA can be rolled over to another family member. If no one in your family uses the Education IRA, the funds must be withdrawn by age 30 of the beneficiary. The earnings will be taxed and there is usually a penalty as well.

7. Please also keep in mind that you usually can not use the Education IRA exclusion in the same year that you use the Hope Credit or Lifetime Learning Credit.

In an Education IRA, you usually choose the investments. Mutual funds represent good vehicles to invest your money. Vanguard and Fidelity offer well managed funds with low expense ratios. Most banks, mutual fund families, and brokerage firms can help you establish an Education IRA.

Answer:  Please never refer to yourself as "stupid". This is self-demeaning and unproductive. Have confidence in yourself. I do not know who you are but I know that you are not "stupid". You sound like a very nice person. I am very happy to see that you are being proactive in trying to find answers for your financial issues. Seeking the advice of a financial advisor is an excellent idea.

There are many ways to get financial help. Here are some different ways:

1. Contact the Financial Planning Association (FPA). This is a nationwide financial planning organization that many Certified Financial Planners (CFP) join. The phone number is (800) 322-4237. They can give you more information and may be able to refer a financial advisor in your area.
2. Many companies (especially the larger ones) offer free counseling services to their employees. Check with your human resources department to see if they offer such services.
3. Ask people you know or professionals that you work with such as an accountant for referrals. They may be able to refer you to a financial advisor that they know and trust.
4. Check with your state or local government (look in the White Pages). They may offer financial counseling services.
5. Check the Yellow Pages. If you look under "Financial Planning Consultant", you should see many names that offer financial advisory services. I would stay away from advisors, like stockbrokers, that are just interested in investments. At this point, reducing your debt seems to be your primary goal. You need to work with someone that can help you with reducing debt and working on your overall financial picture first.

What is very important here is that you have a job with good standing. This will provide you with cash flow that you can use to help take care of your financial situation. Here are some basic ideas that I am going to suggest now to help improve your financial situation:

-  Contact the credit card company and ask for a lower rate. They do not want to lose your business. Often, they will agree.

-  Contact your credit card company and tell them you are having trouble paying down the debt. They will often work with you on a plan to lower your debt, which may often include lowering your interest rates. They are much more concerned with getting their money back even with lower rates from you then by not getting the money back at all.

3.  While you have a lot of debt, please do not forget about retirement. If you can afford it, continue to put money aside in your 401k at least up to the amount that your company will match. For example, if they match up to 5%, then contribute at least 5% (if you can afford it). The matching funds from your company are extra money to you and it is well worth to take advantage of it.

5.  You mentioned that you have had several heart attacks. Work on fixing your medical health. For yourself and your children, it is most important to take care of this first. With improving your health and our advanced medical technology, you can live many healthy and productive years. It is important, though , to have financial matters in order just in case. This includes having a will and other important documentation like a medical power of attorney, if anything ever did happen. Your financial advisor can help with that.

I hope this helps. If you have any further questions, please write back. It is best to ask follow up questions using the website rather than replying to the e-mail address you will see on this e-mail. I wish you the best of luck. Have confidence and remain strong. You will get through this financial difficulty. Please feel free to write back and ask as many questions as you want. Also, please tell people you know about the website as well. Thanks for your question and good luck.

Answer:  Visit http://www.irs.gov. This is the IRS web site. On their home page, you will see a whole story that explains how to file for an extension. In brief, you will need to fill out Form 4868. The deadline for this year 2001 is Monday, April 16. Normally, it is April 15. If you do file for an extension and you owe taxes, remember to include a check for approximately the amount that you owe. The web site will explain all of this to you.

Question:  I seriously can't remember what the current US postage stamp rate is. Is it $0.33 or $0.34? Thanks.

Answer:  It is $0.34 as of April, 2001.

Question:  I know that one can deduct from 1% to 18% out of one's salary in order to have it placed in your 401(k) savings plan. My math has always been horrendous and I am wondering if there is a web site or some way to figure out from one's salary, how much is 1% to 18% of that salary?

Let's say I make $20,000.00 a year and I want to figure for myself what I wish to have deducted from my salary so I don't overextend myself - so how can I figure out of a salary of $20,000.00, what is 1% extracted, 2% extracted all the way to 18%?  Thanks!

Answer:  Here are the numbers for $20,000.

1% of $20,000 = .01 * $20,000 = $200/year.

2% of $20,000 = .02 *$20,000 = $400/year.

3% = $600/year. 4% = $800/year. 5% = $1,000/year.

6% = $1,200/year. 7% = $1,400/year. 8% = $1,600/year.

9% = $1,800/year. 10% = $2,000/year. 11% = $2,200/year.

12% = $2,400/year. 13% = $2,600/year. 14% = $2,800/year.

15% = $3,000/year. 16% = $3,200/year. 17% = $3,400/year.

18% = $3,600/year.

Let's do this using a calculator.

2.  Move the decimal point two places to the left. Put in a zero where there is no number.

3.  Multiply this number by $20,000.

Example #1  - 12% becomes 12.

- Then 12. becomes .12

- Multiply .12 times $20,000 on calculator.

- You get $2,400.

Example #2   - 5% becomes 5.

- Then 5. becomes .05

- Multiply .05 times $20,000 on calculator.

- You get $1,000

In figuring out what to contribute to your 401k, does your employer offer matching funds for your contribution? If yes, try to contribute at least that much. For example, if your employer matches up to 4%, try to contribute at least 4%. The employer's contributions are basically free money.

If you can afford it, save more. The more you contribute, the more you can save on taxes this year. Contributions to your 401k are not considered income for the year that they are made. The taxes on the contributions are deferred until when you withdraw the funds later on in life.

Please keep in mind that once the money is placed in a 401k, it is meant to be saved for retirement. If you want to pull the money out early, you will pay full income taxes in addition to a 10% penalty in most cases if before age 59½. Sometimes, you can borrow from a 401k as well.

Answer:     For France, the exchange rate is 7.362 French Francs to $1 U.S. Dollar (04/27/01). 

                  For Switzerland, the exchange rate is 1.727 Swiss Francs to $1 U.S. Dollar (04/27/01).

You can get currency exchange information by going to Yahoo. Then click on Finance. Then click on Exchange Rates under Investing - International.

Answer:  If an inflation rate of 3% is used, the answer is $62,504. This is how you do it using Microsoft Excel: Enter the following equation in any cell.

=$10,000*(1.03^62).

This will get you the answer. Here is what each number represents.

$10,000 = your amount.

* = multiply.

1.03 = the inflation rate. If your inflation rate is 4%, then use 1.04.

^ = means use an exponent and allows for compounding.

62 = the number of years between 1939 and 2001.

Answer:  The answer is yes. But it applies only to stock purchases made in the year 2001 or later.

The new tax rule is as follows. If you buy a stock after January 1, 2001 and hold it for at least five years, you are eligible to receive special capital gains treatment when you sell the stock.

If you are in the 28% federal income tax bracket or higher, you will be eligible for an 18% capital gains tax rate instead of the normal 20%. If you are in the 15% federal income tax bracket, you will be eligible for an 8% capital gains tax rate instead of the normal 10%.

Thus, you save an extra 2% on the capital gains tax rate if you buy the stock in the year 2001 or later and you hold it for 5 years.