DEAR BRUCE: I recently came into some money, and I am thinking of paying off my second mortgage. I have two 30-year fixed mortgages at 5.375 percent. The first is conventional in terms of monthly payments. However, with the second mortgage, I have about nine years before I start paying on principal. Would it be wise to pay off the second mortgage now? Thanks in advance. -- M.M., via e-mail

DEAR M.M.: I am very much opposed to interest-only mortgages. If there is a prohibition about reducing principal on that mortgage, then I would double up or more the principal reduction on your other mortgage. You didn't indicate what the interest rate on your second mortgage is, but I suspect that it is higher than the 5.375 percent that you're paying on the 30-year mortgage. You might wish to start paying that down more quickly. Either way, unless you are an extraordinarily sophisticated investor, interest-only mortgages will eventually come back and bite you hard.

DEAR BRUCE: My husband's brother has power of attorney over his mother's accounts. His father made it that way before he died. She wanted both sons to look over her accounts. The other brother put a stop to that. He wanted to be the only one in control of the money. So, he has now contacted my husband and said he gets more of the money because he is power of attorney. I thought only the executive of the will receives a percentage? He has been moving money around already without talking to anyone. -- T.D., via e-mail

DEAR T.D.: We're throwing a lot of terms around here. First, a power of attorney, in the absence of a specific contract, does not call for any stipend to be paid to the power of attorney. You say you thought the "executor" of a will receives a percentage. This can be the case, but more often for a family member who becomes the executor/executrix, it will very regularly say to "server without bond or compensation." Nonetheless, he doesn't have to talk to anyone in terms of moving money around, but he most surely cannot put that money in a situation where he is a beneficiary or receives a benefit. If there are substantial sums involved, your husband might wish to see an attorney and have the court demand an accounting from your brother-in-law. This doesn't do much for family relationships but this is why when giving powers of attorney, naming beneficiaries, executors, etc., the entire family should be notified as to what you are doing and why.

DEAR BRUCE: I recently turned in my plates on my car and will have no insurance. My daughter, who lives with me, will add me to her policy for my use of one of her two cars. Her policy coverage is as follows, $100,000 insurance liability, each person $300,000 each occurrence. Which would be the best cost effective method to protect assets? Increase her liability to $1 million get a non-owners policy, or perhaps get an umbrella insurance starting at the amount her liability ends? Or must an umbrella policy be based on a basic car insurance policy in my name? -- M.G., via e-mail

DEAR M.G.: You mentioned you turned your plates in and will have no insurance. Did you dispose of the automobile? You should have insurance on that car as long as it's in your name even though no one is operating it. Your daughter lives with you, which could be troublesome because oftentimes umbrella policies are issued only to homeowners, although your daughter could carry a renter's policy. Check this out with your insurance agent. One-hundred-thousand dollars to $300,000 is almost like no insurance at all. You want at least a couple of million under an umbrella policy that dovetails with the primary policy. You mention a nonowners policy. You need to go to your agent or broker and explain what you're trying to accomplish, at least several million on any automobile you operate, and find the least expensive way to accomplish this. You might also counsel your daughter that she is putting herself in jeopardy with such a tiny amount of insurance.