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Web Letter

Wall Street's excesses have obviously involved more than just bank accounts. Many have much of their money in mutual funds, for example. Now that the stock market is about 60 percent recovered compared to its peak, and may be back to some sense of normality, I suggest that people also consider using some of their mutual funds to pay down their long-term debts such as home mortgages. The interest you save is a guaranteed return, and the equity is an asset. Yes, you may lose some mortgage interest tax write-off, but for many it would still be a wise choice considering the uncertainties that remain in financial investments. Nobody knows what the stock market will look like in the future, despite recent gains.

Berry Ives

Albuquerque, NM

Jan 21 2010 - 3:54pm

Web Letter

What about "Move Most of Your Money"? Big banks have near-nationwide ATMs now, offer better online banking than most small banks and also generally have better telephone customer service. What I've done for years is just leave a nominal amount of money in a big-bank no-fee checking account, but take full advantage of the bank's services.

david smith

Fort Lauderdale, FL

Jan 17 2010 - 3:19pm

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