Hi, Helaine: I am a Peace Corps volunteer in Africa. I have been in my assigned country for about a year, and I have one more year to go.

I'm writing because of my student loans. I was fortunate enough to only need to take out about $8,500 combined to earn my undergraduate and master's degrees. Before I left for Africa, my payments were $90 a month. But even though my debt is manageable, I can't wait for some of it to be canceled.

Peace Corps volunteers accrue a small readjustment allowance for their two years of service, somewhere around $8,000 in pre-tax income. The money is supposed to help me when I return to the United States and begin looking for a job. I also recently opened an IRA and rolled over the very small amount -- I mean very small, it's about $700 -- I earned from my job before my Peace Corps service. I know I could max out my IRA contribution with part of my readjustment allowance, which would make me more comfortable about my long-term financial situation.

My questions: Should I take my readjustment allowance and pay down my student loan debt in its entirety, or as much as I can? Should I put 15 to 20 percent in my IRA? I know my monthly loan payments are manageable, and an easy way to maintain good credit, but I would also rather not pay more interest than I have to. I'm torn between the two ideas. Help! -- Torn Between Two Options

Dear Torn: You need to take a step back. First, it's quite possible you'll need to live on your readjustment allowance for a time. Unless you are planning to move in with family, you'll need it not just to get by day-to-day, and not just to pay rent, but you'll also need to stretch it so it can cover a security deposit at your new residence. As you noted, $8,000 is not a lot of money, and you will find, especially if you decide to set up in a high-cost metropolitan area, you'll go through the sum quicker than you realize.

If, however, some of it is left over after you get a job, I notice you don't mention a third option: emergency savings. You need to put money aside for when things go wrong -- and make no mistake, things will go wrong occasionally. (Just ask the 800,000 federal workers who were recently furloughed, with their pay delayed.)

I understand the desire to pay down your student loans, but given the low monthly bill due, I would not consider it a financial priority. As for retirement savings, remember what I said about an emergency account? Once money goes into an IRA, it can't be withdrawn without paying a financial penalty except in limited circumstances. My advice: Unless you already possess three months of savings for unexpected events, use this money to make that happen.

(To ask Helaine a question, email her at askhelaine@gmail.com.)

(EDITORS: For editorial questions, please contact Sue Roush at sroush@amuniversal.com)

Hi, Helaine: I'm planning to retire in two years, when I turn 70. For the past two years, I upped my contributions to my 401(k), and am now having 26 percent of my gross pay taken out.

I just discovered the payroll company my employer switched to in February of last year calculated my taxes on my gross pay as if I was not taking out money pre-tax for a 401(k) contribution. I may have lost $5,500 in pocket money over the year! This money could have been earning interest in the bank, or I could have used it to help pay my daughters' student loans.

The company is now dumping it in my lap. They told me I should get the money back, but there is no guarantee of it. What can I do? -- My Employer Taketh

Dear Employer Taketh: I totally understand your fury. I'd be angry too. I reached out to David Oransky, a certified public accountant based in Missouri, on your behalf. He says it's unlikely you'll have a problem recovering your funds. As long as your W-2 accurately reflects the situation, you should receive the money back as part of your (obviously) larger-than-normal tax refund for 2018.

But that does beg another question: What if the W-2 is wrong and is coding the money as a post-tax contribution? In that case, you will need to contact your employer and its payroll service, and get them to issue a corrected W-2, something they are most certainly obliged to do.

After that, your next decision will be what to do with the recovered money. I've got no advice on that one. You sound responsible, and I trust you to get that decision right.

(To ask Helaine a question, email her at askhelaine@gmail.com.)

(EDITORS: For editorial questions, please contact Sue Roush at sroush@amuniversal.com)

Dear Helaine: I am almost 62 years old and my husband just passed away. He had a life insurance policy for $50,000. My only debt is the mortgage on our home, which has a remaining balance of $110,000. My monthly payment is a little more than $1,100, and that includes my escrow account covering my property taxes and homeowner's property insurance. I am paying an additional $300 to $400 a month toward the principal.

I am able to live on my current income. After I retire, my pension, 401(k), Social Security and other savings will also leave me enough to live on. I am questioning what I should do with the $50,000. Should I pay down the house mortgage, or put it in another investment account so I can add to my monthly income when I retire? -- Moving Forward With Life

Dear Moving Forward: I want to start by saying I am so sorry for your loss. I'm glad you are moving forward, but I am going to suggest you start by taking a step back.

Give yourself time to grieve. Your life has been irrevocably altered because you lost someone you loved very much. If you make a decision about this immediately, you could very well make the wrong one.

It's possible that a year from now you'll decide you don't want to remain in this home, and you'll want to make a new start. So don't put the money toward your mortgage immediately. Set it aside in a one-year CD, where it will remain secure. If at the end of that period you still love this residence and don't see retiring elsewhere, ask yourself a few more questions: Is this a home I could age in place in? What kind of work will the home need so that is possible? Some of the $50,000 might need to be earmarked for that purpose, or for needed renovations and other home repair maintenance.

I am not against you putting the money toward paying down the mortgage once you answer all those questions. There is a good argument to be made that you should reduce the period of time you will owe money on the home in retirement. The less in the way of monthly bills you'll need to pay when you cease work, the better it will likely be for your finances -- and for your peace of mind.

(To ask Helaine a question, email her at askhelaine@gmail.com.)

(EDITORS: For editorial questions, please contact Sue Roush at sroush@amuniversal.com)