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Tuesday’s need-to-know money news

February 9, 2021 By Liz Weston

Today’s top story: How to get your savings resolution back on track. Also in the news: Where to look if your small business can’t get a PPP loan, breaking down the tax implications of PPP loans, and when you might get your $1,400 relief check.

Broke Your Savings Resolution? How to Get Back on Track
It’s not too late.

Where to Look If Your Small Business Can’t Get a PPP Loan
Small-business owners can turn to other SBA loans and grants from state and local agencies and organizations.

Breaking Down the Tax Implications of PPP Loans
Expenses paid with a PPP loan can be deducted on your taxes, even if that loan is forgiven.

When Will You Get Your $1,400 Relief Check?
It’s going to be a few weeks.

Filed Under: Liz's Blog Tagged With: covid relief check, PPP loan, savings resolutions, small business, Taxes

Monday’s need-to-know money news

February 8, 2021 By Liz Weston

Today’s top story: Discriminatory practices leave Black Americans with less life insurance. Also in the news: How to keep your student loan payment at $0, a new episode of the Smart Money podcast on the lessons learned from Gamestop, and how to protect yourself from gas pump skimmers.

Discriminatory Practices Leave Black Americans With Less Life Insurance
Years of discrimination have led to a life insurance coverage gap between Black and white Americans.

How to Keep Your Student Loan Payment at $0
Take a look at income-driven repayment.

Smart Money Podcast: GameStop Lessons and Talking About Money With Your Partner
Understanding what the heck happened with Gamestop.

How to Protect Yourself From Gas Pump Skimmers
Scammers never rest.

Filed Under: Liz's Blog Tagged With: Black Americans, GameStop, gas pump skimmers, income-based student loan repayment, life insurance, Smart Money podcast, Student Loans

Q&A: Age minimum for survivor benefits

February 8, 2021 By Liz Weston

Dear Liz: I am 53 and Social Security is giving me a hold time for my widow support. What should I do?

Answer: The only thing you probably can do is wait.

Survivor benefits are normally only available once you turn 60. You can start as early as age 50 if you are disabled or at any age if you are caring for the deceased worker’s minor children.

Filed Under: Q&A, Social Security Tagged With: q&a, Social Security survivor benefits

Q&A: Dementia and financial accounts

February 8, 2021 By Liz Weston

Dear Liz: You recently discussed the importance of adding spouses to financial accounts before one of them dies to make it easier for the surviving spouse. I wholeheartedly agree. I would add that this needs to be done sooner rather than later. If one of the spouses is diagnosed with dementia, the bank will likely not make changes to accounts. People have to be able to understand what they are signing.

Answer: That’s an excellent point. Another important task is to create powers of attorney for healthcare and finances. These allow someone else to make decisions for you if you are incapacitated. Someone in the early stages of dementia could sign such a document if they understand what it is, but otherwise the family might have to go to court to get a conservatorship, which can be an expensive process.

Filed Under: Banking, Elder Care, Q&A Tagged With: banking, dementia, q&a

Q&A: Paying down your mortgage

February 8, 2021 By Liz Weston

Dear Liz: You’re not a fan of prepaying student loans in most cases because the extra money sent to lenders is “gone for good” — it’s not like credit cards, where paying down a balance can free up some of the credit line to be used again. But what’s wrong with paying down a primary mortgage? That can create more equity that people could borrow against.

Answer: Perhaps. To tap that equity without selling the home, though, you need a lender’s cooperation, which isn’t always forthcoming when you’re experiencing a financial emergency. If you lose your job, for example, a lender may be reluctant to offer you a cash-out refinance or allow you to establish or expand a home equity line of credit.

Contrast that with paying down a credit card, which typically opens up available credit as soon as the transaction is processed. That’s not guaranteed, of course, because lenders can lower credit limits or even close accounts if your credit scores drop or if bad economic times make lenders more cautious. But for the most part, credit cards are a much more flexible and accessible source of credit than mortgages.

That’s not to say you should never make extra payments on a mortgage. If you’re on track with saving for retirement, you’ve paid off higher rate debt and you have a sufficient emergency fund, then prepaying a mortgage can make sense.

Filed Under: Q&A Tagged With: mortgage payments vs student loan payments, q&a

Q&A: How to find an accountant and a financial planner

February 8, 2021 By Liz Weston

Dear Liz: Can you offer advice on finding the right accountant for someone doing taxes for the first time after divorce? My husband always handled this. Also, same question for a financial planner for a newly divorced person? It’s all so overwhelming.

Answer: It is, and you’re smart to reach out for help.

You might consider hiring a personal financial specialist. This is a designation earned by CPAs who handle not just taxes but financial planning as well.

A CPA-PFS is a fiduciary, which means they’re committed to putting your best interests first. Also, many are working virtually now because of the pandemic, so you should be able to find several candidates to interview even if you live in a more remote area. You can start your search at the website of the American Institute of Certified Public Accountants.

Filed Under: Banking, Q&A Tagged With: accountant, financial planner, q&a

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