Q: I own my own home. I have less than stellar credit, but I do have some cash. I would like to buy two rental houses using financing. Would I be able to get a mortgage? — S.V., 54, Clermont z A: With the recent tightening of mortgage lending, you might not qualify for a mortgage on an investment property. However, you might be able to use a home equity line of credit to assist you in meeting your goals. Visit your bank or a mortgage broker to find out more. — Beth Fleming Brown z Q: I've been seeing advice to put more investment savings into dividend-paying mutual funds rather than equities -- at least for those of us near or in retirement. Would mutual funds containing large-cap, dividend-paying companies be similar to other good, large-cap funds? — S.C. z A: Using large-cap mutual funds with a high dividend objective can be advantageous. Large cap equity mutual funds generally have a value approach that performs well in certain market conditions. However, since all approaches come in and out of favor, your total portfolio volatility can be reduced by employing other styles of funds, such as growth, including mid- and small-cap and international. Many of these may have some dividend income as well. It's also advisable to hold bonds, cash and certain alternative investments. Consult a certified financial planner to help you figure out the appropriate mix for your situation. — Thomas Fleishel z Q: I made a will years ago leaving everything to my brother. Since that time I have married and now listed my wife as beneficiary on everything and put her name on the house. Should I somehow cancel the will? — T.S., Lake Mary z A: I would change your will to reflect you new beneficiary. If you wish to keep your brother as beneficiary on some items, the will is where you would do this. Your beneficiary designations on accounts and title changes such as joint with rights of survivorship will supersede the will, but the will can cover anything that does not have a beneficiary designation. — Nancy Hecht
Have a question? E-mail us at email@example.com. Include your name (only your initials will be printed), hometown and phone. Questions are answered by Certified Financial Planners from the Central Florida Chapter of the Financial Planning Association. Answers are for educational purposes only. Please consult your financial professional. Questions and answers may be edited for space considerations.
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Home equity credit line might fill financing gap
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