Tuesday’s need-to-know money news

Today’s top story: College degrees can be a bargain abroad. Also in the news: Open enrollment time, how to finance a car at 0% interest, and 3 ways to protect your retirement savings from a market crash.

College Degrees Can Be a Bargain Abroad
Considering international universities.

Open Enrollment at Work: Get Ready to Get Choosyst
Finding the best plan.

How to Finance a Car at 0% Interest
Getting the best rate.

401(k) uncertainty? 3 ways to protect your retirement savings from a market crash
Protecting your future.

Monday’s need-to-know money news

Today’s top story: The best time to buy plane tickets. Also in the news: Deciding between options and stocks, everything we know so far about the Tesla Model 3, and how to calculate how much it will cost you to move to a new city.

When Is the Best Time to Buy Plane Tickets?
Timing is everything.

Options vs. Stocks: Which Is Right for You?
Choose wisely.

The Tesla Model 3: Everything We Know So Far
Elon is at it again.

How to Calculate How Much It Will Cost to Move to a New City
Relocation expenses.

Saving money makes you happier – here’s proof

The argument over whether you should invest or pay off debt usually focuses on financial numbers, such as rates of return and interest charges. Maybe happiness should be part of the equation as well.

Studies in several countries, including the U.S., Norway, Ireland and Spain, have found high levels of financial satisfaction among elderly people. Happiness with our money situation tends to rise with age, even though our income peaks in midlife and then generally declines.

Why is that? Further studies show that what we own and what we owe make a difference. One study of 3,751 U.S. adults ages 30 to 80 found that increases in assets and decreases in debt over time “contribute substantially to the life course pattern of financial satisfaction.”

Fair enough. But then two Texas researchers looked into which of those two actions — paying down debt or building up investments — was the bigger contributor. In my latest for the Associated Press, find out which one makes you happier.

Q&A: To give or not to give can be a taxing question

Dear Liz: A good friend who is childless wishes to give his property to my daughter before his death. He has been an informal uncle for the whole 50 years of my daughter’s life, and we are, in effect, his family. However, I am concerned that the gift tax may be more than he bargained for. He is not tax-aware, and earns very little, so his tax knowledge is skimpy. He owns his property outright, however.

I know that someone can give as much as $14,000 without having to file a gift tax return and that there is a “’lifetime exemption” of more than $5 million. If his property is worth, say, $500,000, can he be tax free on a gift of that magnitude by, in effect, using his lifetime exemption?

Answer: Essentially, yes, but he may be creating a tax problem for your daughter.

Gift taxes are not something that most people need to worry about. At most, a gift worth more than $14,000 per recipient would require the giver to file a gift tax return. Gift taxes wouldn’t be owed until the amount given away in excess of that annual exemption limit exceeds the lifetime exemption limit of $5.49 million.

Capital gains taxes are another matter and should always be considered before making gifts. Here’s why.

Your friend has what’s known as a “tax basis” in this property. If he sold it, he typically would owe capital gains taxes on the difference between that basis — usually the purchase price plus the cost of any improvements — and the sale price, minus any selling costs. If he has owned the property a long time and it has appreciated significantly, that could be a big tax bill.

If he gives the property to your daughter while he’s alive, she would receive his tax basis as well. If she inherited the property instead, the tax basis would be updated to the property’s value at the time of your friend’s death. No capital gains taxes would be owed on the appreciation that took place during his lifetime.

There’s something else to consider. If your friend doesn’t make much money, he may not have the savings or insurance he would need to pay for long-term care. The property could be something he could sell or mortgage to cover those costs.

If he gives the property away, he could create problems for himself if he has no other resources. Medicaid is a government program that typically pays such costs for the indigent, but there’s a “look back” period that could delay his eligibility for coverage. The look-back rules impose a penalty for gifts or asset transfers made in the previous five years. He should consult an elder-law attorney before making such a move.

Q&A: Should grandma sue over the student loan she co-signed?

Dear Liz: You recently answered a letter from a grandmother who co-signed a student loan for a granddaughter who isn’t paying the debt. Although you did not suggest it, a very viable option would be for the grandmother to contact an attorney and sue her daughter and her granddaughter for the debt owed.

It doesn’t appear that they care for the grandmother anyway, so why feel bad about holding their feet to the fire? The grandmother may not have a legal leg to stand on with the daughter, but surely the granddaughter received the benefit of the loan and should ante up.

Answer: Suing a family member is a pretty drastic step that many people are reluctant to consider. If the grandmother is in fact “judgment proof” — if creditors who sue her wouldn’t be allowed to garnish her income or seize her property — then the lender might start focusing its collection actions on the granddaughter. The grandmother wouldn’t have to go to the expense of suing the young woman or trying to collect on a judgment.

Either way, the bankruptcy attorney I suggested she consult to help determine if she’s judgment proof also would be able to advise her about filing such a lawsuit.

To reiterate, student loans typically can’t be discharged in bankruptcy, but bankruptcy attorneys understand the credit laws of their states and can help people assess how vulnerable they are to lawsuits and other collection actions.

Thursday’s need-to-know money news

Today’s top story: Plug in 3 numbers to plan your financial future. Also in the news: 10 questions to ask a financial advisor, how to stop scammers from stealing your down payment, and shopping around for car loans.

Plug in 3 Numbers to Plan Your Financial Future
A retirement calculator can help.

10 Questions to Ask a Financial Advisor
Finding the best match.

Stop Scammers From Stealing Your Down Payment

Don’t Forget, You Can Shop Around for Car Loans
You don’t have to accept the first offer.

How to buy the last house you’ll ever buy

My husband and I bought what we thought was a starter home 20 years ago. Now we think of it as our “forever” home, where we plan to retire and live out the rest of our days.

We got lucky, because most of the features that make our place good for “aging in place” — the single-story layout, open design, wide doorways — weren’t on our must-have list when we were newlyweds.

We’re not the only people who didn’t think far enough into our future. The vast majority of homebuyers and remodelers don’t consider what it might be like to grow old in their homes, says Richard Duncan, executive director of the Ronald L. Mace Universal Design Institute, a nonprofit in Asheville, North Carolina, that promotes accessible design for housing, public buildings and parks. In my latest for the Associated Press, what you should take into consideration for the future when buying a home.

Wednesday’s need-to-know money news

Today’s top story: Mad at Equifax? Use that fuel to boost your cybersecurity. Also in the news: What to weight when considering a secured credit card, what not to do on your Facebook small business page, and 3 mistakes to avoid when picking a Medicare plan in open enrollment.

Mad at Equifax? Use That Fuel to Boost Your Cybersecurity
Batten down the hatches.

What to Weigh When Considering a Secured Credit Card
Things to watch out for.

What Not to Do on Your Facebook Small-Business Page
Setting the right tone.

Avoid these 3 mistakes when picking a Medicare plan during open enrollment
Choose wisely.

Tuesday’s need-to-know money news

Today’s top story: The scariest thing to find on your credit report. Also in the news: How to spend your day when you’re unemployed, advocates praise student loan scam crackdown, and how to get your student loans back on course.

The Scariest Thing to Find on Your Credit Reports
Beware of surprises.

How to Spend Your Day When You’re Unemployed
Getting off the couch is a good start.

Advocates Praise Student Loan Scam Crackdown, Demand More
The tip of the iceberg.

Ask Brianna: How do I get my student loans back on course?
Course correction.

Monday’s need-to-know money news

Today’s top story: Feds, 11 states crack down on student loan scams. Also in the news: Adding a loan to your shopping cart, 5 top benefits of a Roth IRA, and setting your holiday spending budget in October.

Feds, 11 States Crack Down on Student Loan Scams
Cracking down.

Should You Add a Loan to Your Shopping Cart?
A new option at the register.

5 Top Benefits of a Roth IRA
What you should know.

Get Christmas budget set for holiday spending in October
The holidays will be here before you know it.