I am getting to a point financially where buying a house may be a good investment, but I am also wary of making a long term commitment when I don't otherwise have to do so. Instead of investing in a home, what would be a good investment alternative assuming I can secure cheap rent on my place of residence?

Hi! My name is Jim Sandager and I am a CERTIFIED FINANCIAL PLANNER™ practitioner. I have a master’s of business administration in financial planning and investments. I earned my MBA at Bowling Green University in Ohio and hold a bachelor’s degree from the University of Minnesota. I co-host the popular WHO radio program, “Your Money,” with Bruce Helmer. I regularly write a personal finance column for the Des Moines Register’s Sunday Business section. I am eager to assist and answer your financial questions! Thanks, Jim

With low interest rates at the bank, my savings account does not accrue any noticeable interest. Is there a better, low risk way I could be investing my savings? I'm not sure bonds are the answer, as I do want to be able to access the money fairly quickly if I need it for an emergency.

At what point does it make sense to refinance? When the interest rate is a full point lower, 2 points, half a point?

Here is a short blog I put up a month ago about 4 steps to better money management

http://waukee.patch.com/blog_posts/four-financial-steps-to-better-money-management

What guidance can you give people who have not yet started retirement planning?

Beth, it is never to late to start to start regardless of one's age. Some people are able to start early other people aren't. The good news is for those people over age 55 we believe you'll have Social Security as a back up. Currently Social Security if fully funded to 2037. It previous to 2008 was fully funded to 2042. Because income was down due to the recession the funding has been reduced 5 years. That's 25 years from now and if someone is 55 they'll be 80 in 2037. In 2042 they'll be 85. If there are no changes to Social Security the funding drops to 75%. Therefore in a worst case scenario in 2037 funding of benefits would be reduced by 25%. Changes can be made to Social Security ot fix this shortfall. They include raising the tax rate, raising the tax level on which in come in taxed and delaying retirement benefits for younger people to name a few solutions. Or it can be a portion of each of these to come up with a total solution.

While we believe Social Security will be there for 55 years and older people, it may not be enough. Those people may have to continue working as long as they can. I've known several people who have worked to 70 and are glad to be doing something they enjoy. In addition if you wait until age 70 to draw SS the benefit amount goes up by 8% per year beyond the Full Retirement age. For people born between 1943 and 1954 their Full Retirement age is 66. So if they wait 4 years to age 70 they will be a 32% increase in their benefit. Finally it may be that some people aren't able to retire at age 70 because the increased Social Security amount is not enough. For those people it's best if they can continue working past age 70 and save the SS benefit. I've known several people that have worked beyond age 70 and I have a close relative who worked full-time until he was 79. If someone works into their 70's then the money needed for retirement is less. For example if a person retires at 64 and lives to 90 they need to cover the shortfall from Social Security for 26 years. if they retire at age 77 they only have 13 years to cover any shortfall from Social Security. And if a person is working they usually get inflation adjustments in their income. Whereas if you have investments you have to not only cover the shortfall in income today but also the inflation impact and shortfal over the course of retirement. Hope this helps! Thanks, Jim Sandager

Roth IRAs are great! If a person is under age 30 they should definitely start a Roth IRA. They have to pay the taxes upfront but all distributions, including earnings, are tax-free. This may also make sense for those under age 50, depending upon their circumstances. They may also make sense in estate planning; this is a strategy that can help with tax diversification. Jim Sandager

I have significant student loan debt accruing 8+% interest, and which seems to be ineligible for consolidation/refinance through the providers (Sallie Mae and the Dept of Ed., both). Is there any way that I can take better advantage of the low interest rates right now?

Hi Shelia. Sorry you're not able to get them consolidated. Since your loans are at a relatively high interest rate I'd recommend putting as much extra cash flow as you can towards paying the off. In some of the recent posts people have talked about how low yields are in savings and other conservative accounts and they're right. It's a low interest rate environment. The good news is for each additional dollar you pay towards principal you're getting an 8% return. That's because paying down a lona is like getting a return on an investment. For example if you're currently contributing to a retirement plan at work I'd only contribute up to the amount of the match from the organization. (Of course your employee contribution should be to a Roth 401k). If there is no match I'd recommend you not contribute anything to the retirement account. Instead you should focus on paying down the student loan as soon as possible. Thanks, Jim

It has been fun being on the discussion board and being a resource! Thank you for all your questions! I've enjoyed this a lot. Please let me know if you have other questions. Thanks! Jim Sandager

Thanks, Jim. We appreciate it!