Q: My mother, who I take care of, has her assets in an account with a broker I trust. Should I keep it all in there with the Wall Street crisis? It is diversified with stocks, bonds, and mutual funds.

- J.M, via e-mail

A: If your concern is the safety of your mother’s investments in the event the broker joins the roster of troubled financial firms in the news, you need to determine if it’s a member of the Securities Investor Protection Corp. (SIPC), says Susan Moore, a certified financial planner in Watertown, Mass. Her account statements, company literature from her brokerage, or a call to the broker can confirm this.

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As long as the broker-dealer is a SIPC member, its customers are covered for up to $500,000 in securities, and up to $100,000 in cash claims. Take note this insurance does not protect against the loss of value of your investments due to market declines. (For more information, visit www.sipc.org.)

Some broker-dealers also provide additional protection for their clients through a private insurance company, such as Customer Asset Protection Co., for account balances above $500,000.

On the other hand, if you’re worried your mother’s investments are too risky for her, Moore advises you to discuss these concerns with her broker. If you aren’t satisfied your mother’s portfolio is appropriate to her age, financial circumstances, and risk tolerance, it might be time to get an independent opinion. You can find the name of a fee-only adviser who will act as a fiduciary (place your mother’s interests above his or her own) at the National Association of Personal Financial Advisors (www.napfa.org).

Artwork and IRAs should never mix

Q: Is it possible to purchase artwork using a Roth IRA?

- M.M., via e-mail

A: In a word, no. In more words, Paul Burkemper, president of St. Louis-based Burkemper Group, would point you to Internal Revenue Code 408(m)(2); Prop. Reg. 1.408-10, which discusses prohibited investments for IRAs that include collectibles such as antiques, precious gems and metals, rugs, stamps or coins, works of art, and alcoholic beverages.

One reason for this regulation is that the value of these types of investments is  subjective, says Burkemper, and therefore difficult for the IRS to monitor.

Bear in mind that if you invest in a prohibited investment (such as artwork) inside of your IRA, the entire IRA will then be considered distributed as of Jan. 1 of that year. It will then be fully taxable, and if you’re younger than 59½, there’s also a 10 percent penalty.

When to consider a reverse mortgage

Q: I am 78 and have a 30-year, 6⅛ percent interest mortgage with 10 years left on it. My income is from Social Security. I’m thinking of a reverse-interest mortgage. I owe $103,000 and my house is worth $220,000 to $250,000. My concern is that my daughter have something when I leave. Is there a difference in terms and interest in reverse mortgages? Which ones are considered the best?

M.B., Phoenix

A: While the good news is that you have built up substantial equity in your house, says financial planner Debra Neiman, author of “Money Without Matrimony,” that overhanging mortgage most likely will disqualify you for a reverse mortgage.

In order to qualify, you generally must own your home outright, meaning you have paid off any mortgages that use the house as collateral, she says.

If that weren’t the case, Neiman gives this take on reverse mortgages: They’re most appropriate for people over age 62 who are house rich and cash poor. The homeowner taps into the home’s equity and receives periodic payments from the reverse-mortgage lender.

But the reverse mortgage is not paid back. Rather, the loan and interest are repaid when the last surviving borrower sells the home, permanently vacates the property, or dies.

The downside to the reverse mortgage is its up-front expense. Closing costs are generally higher than those of a conventional mortgage. So the economics make it more prudent only for people who plan to be in their homes for a long period of time.

Got a question? Submit it to Steve Dinnen at money@csmonitor.com. Dinnen’s Financial Q&A column now appears the first and third weeks of each month.