401(k) loans can be risky business
Dear Mr. Berko: Over a year ago, the employees of our company and I received debit/credit cards that let us take money from our 401(k) accounts. This is a great thing because instead of paying 22 percent or more in interest plus penalties and charges to Visa or Master Card, we would only pay 10 percent interest. What's more, what interest we paid would go to our 401(k) account because we had borrowed the money from ourselves. Because our home-equity loan was up to the limit, we used $23,000 from my 401(k) last year to purchase a remodeled kitchen for my wife and a home entertainment center for me. Well, I got laid off after 16 years with the company. Consequently, I can't use the company payroll deduction plan, as we had planned, to repay the 401(k) loan. And because I can't afford to repay the loan, I will have to pay an early withdrawal penalty to the IRS, federal and state income taxes, and back interest. Is there any government program to help married family men like me to pay back our 401(k) retirement plan loans because the bad economy caused us to lose our jobs? And if there isn't, please tell me your best opinion on Jesse Webb who advertises how to make up to 30,000 percent by buying stocks selling for a penny or a nickel. Even if I could make 10,000 percent I'd be happy and I would pay off my 401(k) loan. He also has an options course in which he says a California investor made $18 billion last year, that a professional athlete made $16 million and a golf caddy made $100,000 every month for 6 straight years. I'm willing to borrow the money from an uncle to take these courses if you think they will work. Please answer me because I need your help immediately.

Cheap annuity has no death benefit
Dear Mr. Berko: My friend says Fidelity Investments had an advertisement in the newspapers talking about a guaranteed-income investment that would be good for the remainder of my life. My friend says that the income will always be the same and will never go down. He said he moved $27,000 from his independent retirement account to this Fidelity Growth and Income investment that guarantees 6 percent on that money right away, or $1,620 a year. I don't want to call Fidelity because I don't want to get sold a bill of goods by a smooth-talking salesman. However, I could invest $52,000 if you think this is a good thing.

Retired couple should avoid this mistake on the lake
Dear Mr. Berko: Mother and I have been reading your column for over 20 years. We don't have much money, but after 55 years of marriage we have managed to save a few dollars and raise four good kids. We have a $33,000 certificate of deposit coming due next week and the best yield we can find is 4.2 percent. But I discovered from a friend that STEN Co. is offering 14 percent on a two-year note that we can buy through a brokerage called Sumner Harrington Ltd., a member of FINRA. What is FINRA?

Consider a discount broker
Dear Mr. Berko: I have an account at Dean Witter & Co. and felt lucky in May to buy 500 shares of the Merrill Lynch 8.625 Percent Series 8 Preferred Stock with a good 8.625 percent yield at the initial public offering price. And I didn't have to pay a commission. Well, several months later my 500 shares, which cost me $12,500, were trading at $18 and I had quickly lost $3,500. I was concerned but didn't think Merrill would go out of business so I called to buy another 500 shares because the yield of $18 was almost 12 percent. When I asked the broker what he thought, he said it was dangerous and didn't think I should buy more shares. He even suggested that I sell the 500 I had already purchased at $25 per share. When I asked him what the commission would be to sell that stock, he said the cost would be about $245.

U.S. economy reaps what banks and borrowers sow
Dear Mr. Berko: Can you explain to me in simple English how this banking crisis happened? I believed that U.S. banks were the strongest in the world and now they seem to be collapsing while banks in Europe and Asia remain healthy. My brother, who lives and works in the Netherlands, says U.S. banks have "sloppy management and lending practices," which is why they are in trouble. I'd like your thoughts.

Getting the facts straight about TIAA-CREF
Dear Mr. Berko: I'm employed at the Fermi National Accelerator Lab in Batavia and have a large sum of money in TIAA-CREF and must take you to task for an error in referring to them as a "for-profit" company. I happen to know from a cousin who is an accountant with them that they are a non-profit organization and that they pay their salespeople salaries not commissions. Still, that doesn't excuse the poor performance of the more than $400,000 I have in my annuity with them. I tried to move $200,000 of that money (roll it over) to an independent retirement account with a broker at Merrill Lynch but it's been over three months and TIAA-CREF has yet to send the money. I am very concerned about my account and need some solid investment advice.

FDIC safety net spreads far and wide over banks
Dear Mr. Berko: I have more than $1 million in Wachovia Bank. The lady there told me that if I were to open 10 accounts, each with a different account number, that my money would be 100 percent insured. A man at Bank of America told me that my maximum insurance at his bank is $300,000, which is $100,000 in my name, $100,000 in my wife's name and $100,000 in a joint name. A teller at Fifth Third Bancorp said that my maximum insurance is only $500,000, $100,000 in my name, $100,000 in my wife's name and $100,000 for my name and my wife's name with each of our three children as beneficiaries. So I asked my lawyer, who said he would have to draw up three living trusts to insure the $100,000 with each of our children. I'm confused because I can't seem to get the same answer from four professionals to one simple question. Is there any way you can help me?