Top financial questions asked and the answers given by real people on Yahoo! Answers
Not for awhile. By keeping interest rates low, it increases the supply of money in the system because it's "cheap." Bernanke and friends haven't seen inflation creeping up, so they haven't raised rates and don't seem to have any intention to in the near future. Stocks are riskier, but better returns right now. Market volatility isn't as bad as it was a year or two ago, but there are still some turbulent days.
You're confused. You DON'T get unemployment if you're fired. You only get unemployment if you are let go through no fault of your own (company closes, goes bankrupt, layoffs, etc.) So the answer to your question is, it depends on why you're not working any more. You also don't get unemployment if you quit.
The smart thing to do is to not go into foreclosure if you can help it. Foreclosure ruins your credit score, and makes it very difficult to get a good interest rate on future loans. Both bankruptcy and foreclosure lowers someone's credit score dramatically - so it's really not a good option. When you declare bankruptcy, depending on which chapter you declare - you may still have to pay back part of the debt. And it'll take 7-10 years to get off your credit report once it's on there. Your housing values have dropped, which has happened just about everywhere. But if you hang on to the house, what drops will only go back up. Housing properties will return to what they were - it just takes time. It's like selling all your stock when it's down, which is the worst time to sell, as you only make money when you sell it while it's up. I would recommend your mom look into Obama's loan modification program. It can lower the payments for awhile, or help her with the interest rate. Mortgage rates are also down right now, so maybe she should look into refinancing into a lower payment if her current mortgage rates are high. If she does not qualify for the loan modification, then she should look into a short sale. This is when you sell the house less than what you owe, and the bank agrees to work with you, and even take part of the loss. You can then rent for awhile, or get a much more affordable home. If she has high credit card debt, then filing for bankruptcy will certainly keep her from being able to borrow for quite some time. Instead of giving up, she should be contacting all the credit card companies, and ask them to work with her on the payments. I've included a few resources on these topics below. It's really good she's being open about this whole process, but make sure her credit is ruined unnecessarily. Check out the articles, and feel free to let me know if you have any other questions. Good luck.
To get an overall feeling for your integrity, discipline, and lifestyle. Indebted persons are more apt to embezzle, etc. A low credit score can also indicate that you make poor choices in your financial and purchasing deals.
I was recently asked by a friend what the differences are between a 401(k) and a 403(b) to which I answered, very little. Both are offered by your employer, both may or may not feature employer matching contributions, both take contributions pre-tax up to a specified yearly limit, both are called “defined contribution” plans (versus “defined benefit” like pensions), and both are great ways to save for retirement. The differences between the two types of plans have been greatly minimized with the passing of the Economic Growth and Tax Relief Reconciliation Act of 2001. Remember, the names of these plans are derived from the section of the United States Internal Revenue Code under which they are defined. The three main ones are the 401(k), the 403(b), the 401(a) and the 457. So, it’s not necessarily the case that the plans are different, they’re just specified in different sections. That being the case, the main difference is that the 401(k) is offered by for-profit businesses whereas the 403(b) is offered by not-for-profit businesses. [The 401(a) and the 457 cover employees of state and local governments and some other tax-exempt organizations.] For all intents and purposes to the employee, there are very few other differences (you can get your money out earlier than 59.5 under certain circumstances) but there is proposed legislation to bring the two plans even closer together. If you’re deciding between two jobs (even if it’s your current job versus your potential new job), one that offers a 401(k) and another that offers a 403(b), rest assured that they’re basically the same so it should not affect your decision