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MoneyWatch.com Executive Editor Jack Otter answers some personal finance questions to help you save money and invest it better.
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-- a diesel car or hybrid car -- you save for your kids college or just your retirement.
These are some questions posed in my next guest new book -- got some tougher wants to he's here with the answers Jack otter is executive editor of money watch dot com -- is author of the book.
Work better not worth it simple and profitable answers to life's tough financial questions Jack welcome to the show.
We're gonna do tonight is that -- ask you about these choices and we're gonna give viewers a chance to like come up with their own answer before we deliberately all of them are right.
So the first question should you say for kids' college education or should you say for your retirement what do you think audience.
Think about it.
-- -- -- -- Well I'm -- -- and I got two kids and I have actually looked into how much is going to cost to send them to college.
If one of them is a genius well let's put it this way fight if you -- give birth to a genius today.
He or she goes to Harvard in the eighteen years is gonna cost 650000.
Dollars all of that said.
Take the advice -- -- -- it's just mind boggling but.
Take the advice of the flight attendant.
Put the oxygen mask on yourself before you put it on the child I agree and I -- cannot spend all of your time worrying about your kids.
Your kids can also contribute to their -- -- and they can get loans and also to think there's no loan for retirement Nolan for retirement -- -- vs hybrid which do you -- Well this does depend a bit on where you drive so -- Citi driver is better off with a hybrid because the engine actually shuts down at the stoplight.
My personal favorite though I gotta say I'm going diesel I mean I'd rather drive an Audi -- -- pre yes.
-- a lot lower puns on the highway there comparable but what we're ticket for me was that down the price dealer lot less expensive.
Now they're not in some cases they're not going to be quite as good for as for the environment so that is your number one factor OK got to go hybrid.
But for highway driving diesel is just.
Wanted to save money cheaper yet it's the DSL are right.
OK here we -- -- all over the place because I picked up my favorite type of and there are added up by two different things.
Timber or gold which what other ones which of these two you invest OK so I was a little silly I'm in index -- -- advocate putting your money in the index is much cheaper.
But you know you got -- gambling portfolio what I wanted to do here was point out what I think is the folly of this rush into gold it is up sixfold over the past ten years six times it's gone over the past ten years.
But it has no warnings it pays no dividend timber on the other hand when you're not using it right now they're not building houses what's happening -- -- timber is growing they're gonna have more of it.
I'm go to number you're going with timber.
Wow okay.
Travel insurance or keep that cash I'd never buy travel insurance.
Good for you except I do make one exception but.
The reason I say don't -- terms of the reason you don't if there's so many exceptions so first of all expensive four to 12% and -- you wearing a red dress up.
OK now -- but it -- people are going to Egypt or civil unrest sorry travel insurance didn't cover the of the civil unrest exception.
But honeymoon I say guys.
Spring forward you don't wanna tell your new bridle or reduce financial -- of the guys that not divides us are -- lashed out on is not developing about that -- that's about it for.
Our I don't wanna skip to -- -- ginger and just it this is what you think it is -- all right we're saying.
Balance.
Marianne.
The wife -- ginger.
What do you say look -- look there's a lot of finance LTD -- done it in this thought I know -- you know there was whatever little fun.
My point here is there's a lot of reasons to be faithful to your spouse is about what -- should have an affair.
And I'm adding one more reason to be faithful and that is the financial reason it is mind boggling really expensive to get divorced especially for -- you can't deduct those child support cost but you have to pay the new go to jail if you won't.
Your wife your ex wife meanwhile will be actually deducting -- head of household you have to pay a new mortgage it is instantly expensive.
My estimate over your lifetime should you get divorced -- million dollars.
That's very -- tonight with that let.
Yeah out at the very expensive I guess we get -- Secret Service agents ya -- think about capital -- -- -- his -- Jack -- but I think people really get enjoy it worth it or not worth it it's out may first -- take a look for that thanks so much pleasure having you line.
