Sometimes the search for decent yields in a low-rate environment can lead to taking too much risk. Government-sponsored enterprises, or GSEs, issue bonds that can provide some intriguing yields and yet they’re close to top-tier investments when it comes to safety.

GSE bonds are not totally risk-free, but none have defaulted, and many people believe the government wouldn’t allow a default. We still don’t know if they’ll always be in the “too big to fail” category, but the government certainly appears to have put them there for the foreseeable future with the announcement that billions of dollars will be available to shore up the institutions, should they need it.

(more…)

The 44-year-old Kravitz has been drawing fans for almost two decades with a stripped-down style of straight-ahead rock ‘n’ roll that earned him Grammy awards four years in a row, from 1999 to 2002. His latest album, which features him on every instrument, gives back more of the same.

(more…)

ETFs present a cornucopia of investment choices in low-cost trading vehicles that trade like a stock. But, similar to mutual funds, each ETF represents a variety of companies, thereby mitigating some of the risk associated with single-stock investments. As investors have scooped them up in their portfolios, issuers have introduced more and more ETFs to the market.

(more…)

I’m one among many who have seen their personal information lost or revealed in a breach. Linda Foley, the founder of the San Diego-based Identity Theft Resource Center, says her nonprofit group has counted 309 data breaches this year as of June 12, resulting in the exposure of 16,795,000 known records total.

(more…)

Dear Terry,
My girlfriend drives a 2005 Jeep Wrangler that eats gas like no other — she gets 14 miles per gallon in the city and 18 mpg on the highway. She currently owes $20,000 with a 16 percent annual percentage rate and now wants to sell her vehicle or trade it in for a Toyota Prius.
She has $2,000 for a down payment, but in the end she will still be in an upside-down situation. Do you have any creative ideas on acquiring a new Prius that is gas-efficient with this scenario?
— Tomas

(more…)

Tough for a reason
When I started driving, my dad provided a vehicle (not new and definitely not pretty) for me to drive. It was my responsibility to pay the insurance and gas. This was my first true expense, and it really taught me that I had to work for what I got. There was many a day when the gas tank was empty and I walked or rode my bike until payday.

(more…)

The catch: Fewer lenders are offering loan consolidation.

Every July 1, interest rates reset for the year for variable rate Stafford loans for students and PLUS loans for parents. Stafford and PLUS loans made after July 1, 2006 are at fixed rates and not subject to consolidation.

Interest rates on the older loans are tied to the interest on three-month Treasury bills based on the last auction in May. Until this year, interest rates have risen every year.

(more…)

Dear Terry,
We may be in need of a third car for several months because of our son’s summer job and, possibly, school-year internship. We don’t really want to lease a vehicle for three years but need the car for more than just a few days’ rental.
Is there something in-between the usual leasing and renting programs that would work for us?
— Beth

Dear Beth,
I would check some local car rental companies not affiliated with the national chains. They often can offer a month-to-month rental. (more…)

Jumbo-conforming loans range in size from $417,000 to nearly $730,000 and are especially important in expensive housing markets. A small condominium or modest first home can cost upward of $500,000 in markets such as Los Angeles, San Francisco, Alexandria, Va., New York and other costly locales.

(more…)

What if you didn’t need to spend any more on gas than you did a year ago, even in the face of these prices?

Through our newsletter, we recently asked Bankrate readers how they were coping with rising gas prices. In their replies, many said they shucked their automobiles — or at least greatly reduced the amount of time they spend behind the wheel.

(more…)

However, it also has generated major controversy about whether or not the service is a scam.

MyGallons.com is offering drivers the chance to pre-buy gasoline at the current price and fill up later when prices — presumably — are higher.

Much of the blame for rising gasoline prices has been attributed to oil speculators who are betting a future barrel of crude will cost even more than it does now.

Drivers have been left at the mercy of such speculators because few can play the futures game and cash in on ever higher oil prices.

(more…)

Dear Terry,
I have a loaded 2004 Kia Sorento that went from a lease to a loan with three years left on payments. I need something a little smaller and more economical with payments not more than $300 a month. Is this possible?
— Karen Haggas

Dear Karen,
To get to $300 a month in payments, you’re looking at a loan of $15,000 for 60 months. There are a number of fuel-efficient vehicles you can get in that price range, such as the Toyota Yaris. The big question here is whether you have any equity in the Kia Sorento and whether you’ll have to pay that off first. (more…)

The reason is that someone with a relatively low credit score — usually less than 700 — may not qualify for the higher monthly payment of a new vehicle.

A salesperson who doesn’t want to lose the customer may recommend a “certified” used vehicle. Typically, such a vehicle is no more than 3 years old and has the added benefit of being inspected and brought up to a manufacturer’s standard for a used car. It also typically comes with an extended warranty.

(more…)

Dear Terry,
We purchased a 2003 Cadillac CTS with a loan amount of $23,442 at 7.75 percent. Our monthly payment is $474 over five years. The car has 32,000 miles and is in excellent condition.
My husband wants to trade for a car that uses less gas. We don’t average more than 40 miles a week, since we’re retired. I think he is wrong. Please advise.
(more…)

Bernanke’s Congressional testimony

Federal Reserve Board Chairman Ben Bernanke gave his semiannual testimony on the economy. I’ll make this quick, sparing you the cut-and-paste of his various comments that I usually resort to in favor of some brief comments.

–Bernanke made it clear that no interest moves, up or down, appear forthcoming. He continued to talk tough on inflation but noted the various pressures affecting the economy as increasing the downside risk to the economy. He even stated that the FOMC needs time to monitor incoming information. Sounds to me like he doesn’t want to paint, or talk, himself into a corner.

(more…)

Dear Terry,
We owe $17,379.40 on our auto loan. We have already purchased a smaller vehicle that gets better gas mileage and has a slightly lower monthly payment. You said to give back the original car to the dealer or the finance company only as a last resort. Help.
— Gregory Merkel

Dear Gregory,
If you simply turn the old vehicle back to the finance company without paying off the balance, it will damage your credit score the same as a repossession. Try selling the old vehicle. Since I assume you owe more than it’s worth, try to find the cash to cover the shortfall. (more…)

These services are often just a mouse click or phone call away. Fees range from free (if you’re a member of one of their affiliates) to anywhere from $200 to $400, with about half of the amount due upfront.

Buyers typically begin by calling the car-buying service or filling out information online.

(more…)

Well, yes — it could.

Every 26.4 seconds, another car is stolen in the United States, according to a report by the National Insurance Crime Bureau. The good news is that the number of car thefts has been decreasing over the last three years. The bad news is that the recovery rate of stolen autos is also down.

(more…)

Dear Terry,
I bought a car in 2006 and my daughter bought a similar car in 2006. My car was purchased June 29 and hers was purchased around July.
Something went wrong with the paperwork on my car and I had to redo it. There was also a problem later with my daughter’s paperwork. According to the salesman, they needed my signature on both papers and my daughter had to also re-sign her papers.

My daughter defaulted on her car loan, and now her loan company is after me for payment. According to her loan company, my name is the only one on the deal. They came and took her car and sold it.

(more…)

But smaller banks may not fare as well, although it doesn’t appear that we’ll see a cascade of bank failures. Nevertheless, the increased risk has prompted the Federal Deposit Insurance Corp., or FDIC, to beef up its staffing in anticipation of banks going belly-up.

(more…)

Untitled DocumentProducer prices heighten inflation worries

The Producer Price Index, or PPI, was released this morning, and while this reading is often overshadowed by the Consumer Price Index and certainly the Fed’s favored gauge, the Personal Consumption Expenditures Index, this month it raises its own concerns.

The headline PPI was up a modest 0.2 percent in April, but that doesn’t reflect the continued surge in oil prices we’ve seen this month. In the past 12 months, the headline PPI has advanced 6.5 percent.

(more…)

Or maybe you remember him for mesmerizing us with his fancy footwork as the runner-up celebrity dancer in the first season of “Dancing With The Stars,” where he ended up in a dance-off with soap star Kelly Monaco. In winning the September 2005 rematch against Monaco, he earned $126,000 for the charity Golfers Against Cancer.

(more…)

Dear Terry,
I recently went into a dealer looking to buy a car. When we started talking about financing, the dealer brought me interest rates that were higher than usual.
When I confronted the dealer about how high the rates were, he asked what I would like to see. I told him in the range of between 4 percent to 5 percent.

About two minutes later, he came back to me with about what I wanted. Do the dealers get any kind of bigger kickback to finance autos at a higher rate? Or do they just not care and go with the lender they normally work with?

(more…)