Simple answers

Many people have the same financial questions, whether they are executives earning a generous six figures or grade-school teachers making a fraction of that, financial planners say.

“There are a certain number of questions that we go over and over and over again,” said Sheryl Garrett, a Kansas financial planner and author of “Just Give Me The Answer$.” Her recently published book compiles more than 130 frequently asked questions with answers from dozens of financial planners.

The answers aren’t the same for everyone. Consumers may face the same issues, but the right course for them often depends on income, age, goals, investment temperament and sometimes even medical history. Here are some samples:

• How much mortgage can I afford?

“The Realtor and the mortgage company have all the motive in the world to have you buy as much house as you want,” Garrett said. But “what you qualify for and what you can afford is not the same thing.”

Homebuyers might qualify for a big mortgage, but they are at risk of foreclosure if they suffer a slight financial setback, she said. For an affordable mortgage, stick to a loan that is about 21/2 times gross pay, she said.

• Buy or lease a car?

If you’re the kind of person who keeps a car five to eight years, you’re better off buying, said Steve Athanassie, a financial planner in New Port Richey, Fla.

But if you’re the type who gets a new car every two years, leasing is for you, Athanassie said. Leasing is an even better deal for business owners who are able to deduct a portion of their lease payment off their federal tax return, he added.

• How much life insurance does one need?

“Life insurance is only necessary if you have a financial obligation that, if you died, would be a burden” for your loved ones, said Mary Malgoire, a planner in Bethesda, Md.

For example, you might want insurance to pay estate taxes, the mortgage or children’s college tuition, she said. Even stay-at-home parents need insurance to cover the cost of child care if they die, experts said.

As a general rule, Garrett recommends at least $250,000 of term insurance coverage for a stay-at-home parent and 10 times gross salary for a breadwinner with children.

• Will the November election affect investments?

This is of particular concern to those nearing retirement who wonder if they will be paying a higher income tax rate on money from retirement plans if the Democrats capture the White House or Congress, said Laura Barry, a planner in Milwaukee.

She advises clients to count on change no matter what happens in November.

“We try to make the point that we will have several tax-law changes and different programs in the course of the next five or 10 years regardless of who is in office,” Barry said.

• Should I invest in real estate?

Watching home values rise faster than stocks, many wonder whether they should buy a vacation home or condominium and become landlords. The assumption is that property values will continue to skyrocket and rent collected from tenants will pay the mortgage.

“Everybody has made money in real estate over the last few years. It’s not that they’re smart, it’s just what the market has done,” said Ted Toal, a planner in Severna Park, Md.

Planners warn that the real-estate market can cool off, and speculators can get burned. Still, if investors want to buy real estate, they should research the properties and all the costs and inconveniences of being a landlord, experts said.

• Do I need long-term-care insurance?

Medicaid will pick up the cost of care for low-income individuals. And wealthy individuals can pay for nursing-home care — which now averages about $66,000 a year — out of pocket.

It’s all those who fall in-between who must decide whether to buy a policy. Policies aren’t cheap — costing about $2,000 to $2,500 annually for those in their mid-60s — and the price only gets steeper the longer someone puts off the decision.

• Should a parent borrow from a 401(k) to pay for college?

“It always worries me when people touch retirement accounts,” Athanassie said.

Besides, parents can be hit by taxes and a penalty if they lose their job and can’t repay the 401(k) loan.

He advises families to apply for financial aid, even those who think their income is too high.

And students should take advantage of low-rate loans, even if they are not subsidized by Uncle Sam.