To get most bang for buck, drive car into ground
DEAR BRUCE: I have heard both sides of the argument when it comes to buying a car. Some argue that it’s best to buy a car and drive it until it’s ready for a junkyard burial. Or should one replace a car, as many do, every 50,000 or 100,000 miles? — Reader, via e-mail
DEAR READER.: I have always been persuaded that if you maintain an automobile well, and that means excellent preventative maintenance, good driving habits, etc., that it is far more economical to buy a decent automobile, maybe even a luxury class and keep it until the wheels fall off. Of course, if you are the type of person who requires the status of a new car, nothing will do other than replacing it regularly. As long as the car is presentable and runs well, the age is unimportant.
DEAR BRUCE: I am 70 and recently widowed. I need to update my will but I’m not sure how to divide everything between my children. There are four of them. My savings has about $300,000, and my home is valued right now at $200,000. However, it is at the bottom of the market right now with our economy in the dump.
Two of my three children do very well for themselves, and the third has had to struggle. I would like to leave more to this one but feel I’m being unfair to the others. I would also like to leave him my home to help him get on his feet. He hopes to one day get married again, but his divorce took a financial toll on him. Should I leave my home in my name, leaving it to him in my will, or add his name to the deed? What are your thoughts? — Reader, via e-mail
DEAR READER: Your children have different wants and needs, and it is not necessary to divide your assets equally.
If you put this house in your son’s name as well as yours and he has creditors after him, they could likely go after the house, as well.
It is true that in many states, the home can be partially or completely protected during a bankruptcy.
I think the safest thing for you to do is to have the home in your name only, leaving it to your son in your will.
That way no one can attach anything to the home while you are still alive.
DEAR BRUCE: I purchased a variable universal life insurance policy on the advice of my financial adviser. My adviser strongly recommends them as a great way to invest money and get the life insurance coverage. I make monthly payments toward the premium and toward money invested through this program. Are these rip-offs, as someone has suggested to me, or good ways to invest my money? — Reader, via e-mail
DEAR READER: You say your “financial adviser” advised you to purchase this, but he sounds more like a salesman. It’s my contention that variable life and other instruments are not the best way to invest ones money. If you need life insurance then term is the only way to go. I question the individual’s total objectivity. It may well be that he believes what he is telling you however, it would not be my choice.
Interested in buying or selling a house? Let Bruce Williams’ “House Smart” be your guide. Price: $14.95, plus shipping and handling. Call: (800) 337-2346.
Send your questions to: Smart Money, P.O. Box 2095, Elfers, FL 34680. E-mail to: bruce@brucewilliams.com. Questions of general interest will be answered in future columns. Owing to the volume of mail, personal replies cannot be provided.
