Dear Bruce: My son, a college sophomore who has more than enough money saved to pay for bills for state university education, is still borrowing. He claims there is nothing improper about borrowing and investing the money. Since there is no interest being charged, whatever he earns is gravy. I think this is wrong. Is he breaking any laws? — Frustrated Mother, via e-mail

Dear Mom: Unless the loan specifically addresses the issue of where the money is being spent, I don't see how he's doing anything wrong. As a matter of fact, I think that he's a smart young man. If he can legally borrow interest-free money, why in the world wouldn't he? The other part of the equation is to make sure that it gets paid back before the interest meter starts to run.

Dear Bruce: I'm 20 years old, and I have been listening to your radio show since I was 9. I am the general manager of a local restaurant and will most likely be going in business with my dad in the future. I also plan to get married.

Right now, I share rent with a friend, and it is very affordable. But when I get married, that arrangement obviously is not going to work. This is a very bad time to buy a house, and I'm not even sure that we should. The more the store makes, the more I make — currently in the $45,000-a-year range. — M.C., via e-mail

Dear M.C.: Thanks very much for writing — people like you make this whole thing worthwhile. I'm delighted that I have had some influence on your life. Unhappily, there is no pat answer to your question. The most important thing is that when you purchase a home, it is not an investment upon which you should expect a return. That is not to say that you won't have a return; however, it is an investment in lifestyle. For people as young as you and your intended, I think that renting for at least a time, until your life comes together, might be a better way to go.

Dear Bruce: I am a 50-year-old nonsmoking male who's in good health. What is your opinion on the best life insurance product for me — term, whole life or universal? Thanks. — R.A., via e-mail

Dear R.A.: In the absence of more information, no one could give you a responsible answer. You failed to indicate why you are purchasing insurance. It could be to establish an insurance estate for tax purposes, you may have debts that you wish to cancel if you fail to outlive them, or you may be looking for some type of investment vehicle. In the absence of this and other information, no one can provide a good answer. If a salesman responds without making these inquiries, put him on your don't-do-business-with list.

Dear Bruce: My husband and I don't agree on when is a good time to pay off our home mortgage. We are in a home that is too big to fit our retirement needs. I say why hurry to pay off this 20-year mortgage. He thinks there's some advantage to quickly building home equity. We have 15 to 20 years before we retire, so should we move to the smaller house now and start paying it off early? — C.A., via e-mail

Dear C.A.: Apparently, you and your husband are looking at your home only as an investment, and it surely is that, but it is also a lifestyle.

You haven't mentioned your age, but I'm guessing late 40s or early 50s. Do you have children at home, where you might need a larger house? Then by all means stay there.

If the children have left the nest and you don't need the extra space, consider moving now.

At the risk of sounding like a broken record, you would be far better advised to invest the difference in the marketplace rather than paying off the mortgage early.

It seldom makes sense to do that unless you have an extremely high rate of interest or you can't control your spending. Neither seems to apply here.

Of course, another variable is that you may choose not to live where you are living now 15 to 20 years down the road, but so what? The house can be sold, and you can apply that money elsewhere.

Don't allow your decision to be entirely colored by what seems to be the most desirable financial choice. It is clear that people should consider the retirement years, but you shouldn't lose sight of the fact that many people will never make retirement age, and you should be entitled to enjoy your life.

— Send your questions to Smart Money, P.O. Box 2095, Elfers, FL 34680. E-mail to bruce@brucewilliams.com.