Dear Harry: For the last few years, I have been dealing with a man who's a Registered Investment Adviser, and he has given me some good advice on investing in mutual funds. Most of these have been load funds, but the net performance has been pretty good. Recently, he has been recommending that we buy a variable annuity. He pointed out that the income will be tax-deferred and it will act like an IRA for retirement. I told him that you don't like annuities except in very unusual situations, but he insists that you just don't know enough about them or you have some unfounded prejudice against them. The annual fee is guaranteed to be 1.5 percent. How can this be a bad deal?

What Harry says: First, there is not one shred of evidence that load funds (those with a commission to the seller) perform any better than no-load funds. You are paying him a totally unnecessary charge to get into those funds. You can get a record of fund performance from all of the major no-load fund groups, such as Fidelity, Janus, T. Rowe Price or Vanguard. I'm not happy with an adviser who gets commissions on what he advises. There are charges in annuities that are not easily seen. I get the feeling that some companies deliberately try to hide them in the small print. The usual charges are for "mortality and expenses" (often referred to as the insurance). Then there is a charge for investments within the annuity and charges for usually unnecessary options. Finally, there are charges for early withdrawals (often for as long as eight years after you buy in). There is also a market risk that the funds won't perform as well as projected. Result? Before you buy any annuity, have your salesperson list all the charges that I outlined. I'm certain that you'll conclude that the annuity will fall short of its promise. The rule on retirement funds goes this way if you can afford to do it: First, go for the amount needed to get your employer's matching funds in the company plan. Second, go for the Roth IRA. Third, is the regular IRA. Finally there are unsheltered funds. There's rarely a place for an annuity.

Dear Harry: We moved into our house last fall. Shortly afterward, the house next door was also sold. The new owners had a survey done which showed that our beautiful picket fence was about 18 inches over the property line. They are very nice people, so they showed us the survey and said that they don't want to cause us trouble, but wanted an acknowledgment from us that we agreed to the findings of the survey. Our real-estate broker looked into this problem, and she agreed that the fence was not on our property. She suggested that we enter into a lease agreement with our neighbor. We discussed this with our neighbor, and they agreed with a suggested rent of $10 a year and a 99 year lease. Our broker was delighted and offered to draw up the lease without a charge. Should we do this?

What Harry says: Most ofcoursely!! You have very fine new neighbors and an ingenious broker. It's really a great pleasure to see what people of goodwill can accomplish. I hope you continue to have this commendable relationship!

Dear Harry: I filed for bankruptcy back in 2001. I had to make small payments on my debts which ended last year. Two of the three major reporting agencies removed the record of the bankruptcy on their reports when I notified them that the payments were done and were all on time, but the third is giving me a lot of flack. The supervisor I spoke with insists that the record can remain until seven years after the last payment on my debts. I want to get my credit back on track, but I get nowhere. Help!

What Harry says: Sorry. Their time statement is incorrect, but their conclusion is correct. A record of the bankruptcy may remain in a credit report for 10 years after filing for bankruptcy. However, if you've maintained a good history since the filing, your credit is already well on its way to a full recovery. Just stay on top of it.

Dear Harry: About 40 years ago, my husband and I were living together, but not married. We bought a home as two individuals who owned it jointly. We'd like to change it to ownership by a married couple. Should we do this?

What Harry says: The necessity for change will depend to some degree on whether or not there is a survivorship provision. If there is, there's little cause to change because it took on the character of "tenants by the entirety" with your marriage. However, to wear a belt and suspenders, get it changed. Any real-estate broker can get it done and recorded for a modest fee. Check a couple to make sure the fee's in line.

Dear Harry: We have never had a safe deposit box. We keep our important papers in a desk drawer. Lately, our kids have been pressing us to protect ourselves by using a box at a bank. We're convinced, but what we should put in there?

What Harry says: Personal papers such as birth certificates, marriage certificates, SS cards. Financial items such as stock certificates, bonds (these are best held by brokers), CDs, valuable coins, deeds to homes (and the settlement sheets on their purchase), automobile ownership certificates, canceled mortgages and notes, an annual statement of what you own and owe, original wills and letters of instructions to your executors. Insurance items such as life and homeowner's policies, an inventory of items in your home (a video tape is best), appraisals of important items. Costly jewelry that is rarely used. There you have it.

Dear Harry: I did not file a tax return for 2007 because I didn't have enough income. Now I have heard that I won't get my rebate unless I file. With all the scams I hear about regarding possible identity theft in giving out information to get or speed up the refund, I'm reluctant to file the return. Is it necessary to file to get the rebate? Should I mail the return to IRS or the U.S. Treasury in Washington?

What Harry says: You must file the return to get the rebate. You should mail it to IRS, not the Treasury. You are so right about the scams. They range from requests for information by e-mail to telephone calls and snail mail. IRS does not communicate by email. Give no info on a telephone call, but offer to reply by snail mail, and make sure you send it to IRS at an address that you can verify by looking at your tax return instruction booklet. No one can speed up your rebate, even a member of your Congressman's staff, the IRS or your bank. You should get the money sometime in May. *

Write Harry Gross c/o the Daily News, Box 7788, Philadelphia, PA 19101. Harry urges all his readers to give blood - contact the American Red Cross at 800-GIVE LIFE.