Those of us who write and talk about money for a living tend to have our financial acts together. But that wasn’t always the case. In my latest for the Associated Press, I invited some personal finance experts to share what they wish they could have told their younger selves about money.
Tuesday’s need-to-know money news
Today’s top story: Why don’t we know if people are getting COVID on airplanes? Also in the news: changes to electronic vehicle tax credits, will interest rates continue to rise, and the stupidest fees you should never pay.
Why Don’t We Know If People Are Getting COVID on Planes?
With all the energy devoted to air travel and COVID safety, you’d think we’d have some hard data. We don’t.
Changes to EV Tax Credits: Where Your Battery Is Made Matters
New changes to the EV tax credit could make it harder to find a model that qualifies.
Ask a Nerd: Will Interest Rates Continue to Rise?
Interest rates seem like they will rise for the foreseeable future, but consumers should make sure to still save.
These Are the Stupidest Fees You Should Never Pay
Life is expensive enough without unnecessary fees—here are the ones you should never pay.
Monday’s need-to-know money news
Today’s top story: What Medicare Part A’s belly-up date means for you. In other news: A new episode of the Smart Money podcast on investing for your dream life, what the Inflation Reduction Act means for your Medicare coverage, and what small businesses should do now to prep for a recession.
What Medicare Part A’s Belly-Up Date Means for You
Shifting services, revamping drug coverage and cutting payments to providers are all strategies that could slow Medicare Part A insolvency.
Smart Money Podcast: Investing for Your Dream Life
This week we’re running an episode from our financial dream series.
What the Inflation Reduction Act Means for Your Medicare Coverage
The act would implement cost-cutting measures for prescription drugs and cap out-of-pocket spending with Medicare Part D.
4 Things Small Businesses Should Do Now to Prep for a Recession
Speculation about a looming recession is putting pressure on many small-business owners to protect themselves against a downturn.
Q&A: Medicare Part A
Dear Liz: You recently answered a question from someone who was delaying signing up for Medicare because he had health insurance through his job. You mentioned that if the employer had 20 or more employees, he didn’t have to sign up until that employment ended. That’s correct, but there’s typically no cost for Medicare Part A so there’s no reason not to sign up.
Answer: That’s an excellent point. Medicare Part A covers hospital visits and typically is premium-free, so signing up at age 65 is a good idea even if you have insurance coverage through work. The other parts of Medicare require monthly premiums and can impose penalties if you don’t apply when you’re first eligible.
Q&A: Switching back to original Medicare
Dear Liz: I’m 75 and I’ve been on an Advantage plan since I started on Medicare at 65. I’m interested in switching to original Medicare with a supplemental policy. I know I will have to enroll in a drug policy also. Will I be subject to any penalties for late enrollment for any of the three policies?
Answer: You won’t be subject to penalties but you will be subject to underwriting for the supplemental policy. That means the private insurance companies that offer these plans can deny you coverage or charge you more for preexisting conditions.
There are a few exceptions. Insurers can’t subject you to underwriting if you’re still within the first 12 months of having a Medicare Advantage plan, for example, or if you move out of the plan’s service area. In addition, four states — Connecticut, Maine, Massachusetts and New York — require Medigap companies to offer coverage to all Medicare beneficiaries.
Start shopping around and make sure your application for a supplemental policy has been approved before canceling your current plan.
Q&A: Social Security and divorce
Dear Liz: I was married for 25 years. Most of the time, I was a full-time housewife and worked part time here and there. Social Security keeps telling me that I can’t collect on my ex’s Social Security until he dies. He is 74 and I am 72. I started collecting at 62 and don’t get that much in Social Security. Is it true that I have to wait until he dies to get more?
Answer: Technically, you’re eligible for a divorced spousal benefit that’s up to 50% of your ex’s benefit if your marriage lasted at least 10 years and you haven’t remarried. If that amount is less than your own benefit, though, you wouldn’t get anything extra.
The math changes if your ex should die. Then you would be eligible for a survivor’s benefit that is equal to what he was receiving. If that amount is larger than your own benefit, you would get the larger amount.