Thursday’s need-to-know money news

common-retirement-mistakesToday’s top story: 5 expenses that will change when you retire. Also in the news: Questions for credit counselors, how to budget for a wedding that isn’t your own, and could we be on the verge of another housing crisis?

5 Expenses That Will Change in Retirement
Could you see more cash in your wallet?

7 Questions to Ask a Credit Counselor
Be prepared.

How to budget for a wedding — that’s not your own
Expenses add up quickly.

Are We Heading for Another Housing Crisis?
It’s getting easier to get a mortgage amid increasing home prices.

Monday’s need-to-know money news

mortgage2Today’s top story: What to do when your employer is acquired. Also in the news: Tips for selling your home this summer, surprising things about cellphone insurance, and how to avoid retirement calculator mistakes.

5 Steps to Take When Your Employer Is Acquired
Tips for uneasy times.

Simple Tips to Sell Your Home for the Right Price This Summer
Summer could be the perfect time to sell.

4 surprising things about cellphone insurance
Reading the fine print.

Using These Retirement Calculators The Wrong Way Could Cost You Thousands
Complicated calculations.

Q&A: The pitfalls of renting a house to relatives

Dear Liz: My son and his family are having trouble with money. I see him stepping up since he had my lovely granddaughter. I am getting ready to retire from teaching. I have my teacher’s retirement and a nest egg set aside. I was thinking of buying him a place where he could pay me rent and when the time happens, move to find his future. I was told, though, that I would have to live in the home after purchase or I cannot get a loan. I just want to see where I can stand in this endeavor.

Answer: People get loans to buy rentals and other investment property all the time. But that doesn’t mean you should be one of them.

Taking on a mortgage in retirement is risky, to say the least, and you’d be putting your financial future in the hands of a young man who has “trouble with money” and who hasn’t always been responsible, given your comment about “stepping up.” When his family hits a rough patch, how hard would it be for him to justify skipping a rent payment, or six, to Dear Old Dad? And what would you do about that — evict him and your lovely granddaughter?

If you were wealthy enough to pay cash for this house, take care of all the ongoing costs and not care if he ever paid you a dime, then maybe this scheme would make sense. In your case, you’re inviting financial distress and family trouble at a time in your life when you should be reducing the odds of both.

The Huge, Hidden Costs of Owning a Home

refinancingFirst-time homebuyer Teresa Hair had owned her house less than two months when water started bubbling up through the guest bedroom floor.

“The whole floor was just covered,” says Hair, a 34-year-old attorney who lives in St. Petersburg, Florida. “I pulled up all the laminate flooring and there was an inch of water.”

Finding and repairing the broken pipe — it was in a wall shared with the kitchen, behind the dishwasher — cost $1,000. Replacing the flooring may cost considerably more. But the expenses aren’t a crisis, Hair says, because she resisted the urge to buy as much home as lenders said she could afford. She also made sure the purchase, including closing costs, didn’t drain her savings.

“I still had a little bit of money saved up, so I wasn’t strapped,” Hair says. “You have to know when you buy a house that you’re going to need something in addition to what you need to close.”

In my latest for NerdWallet, how the hidden costs of homeownership can equal if not exceed the mortgage payments you send to the bank.

Q&A: Adding daughter as co-owner of mother’s home could trigger costs

Dear Liz: My father passed away last year, and my mother wants to add my name to her house so there is no probate. Do I need to change the title or the deed or both? Are there any negatives to doing so? Also, we already have a durable power of attorney between us. Does that offer me any benefits as far as real estate? What does it offer me in general?

Answer: A deed is the legal document that transfers the title or ownership of a property. Please don’t alter the home’s documents until you consult an estate-planning attorney. Your mother’s desire to avoid the costs of probate could inadvertently trigger much larger costs.

Adding you as a co-owner could mean giving up a big tax benefit, for example. If your mother bequeaths the house to you when she dies, you won’t owe any tax on the gain in the house’s value during her lifetime. If she adds you to the title, she’s gifting you half the house. In that case, you potentially could owe tax on some of that gain even after she dies. If she wants to preserve tax benefits while avoiding the court process known as probate, she may need a living trust.

There could be other complications if you should die or be sued, which is why it’s important to get good advice before proceeding.

As for the durable power of attorney: It isn’t designed to give you benefits. Powers of attorney allow you to make decisions for your mother if she becomes incapacitated. Those decisions need to be in her best interest, not yours.

Monday’s need-to-know money news

College SavingsToday’s top story: What to buy and what to skip in April. Also in the news: What all those terms and conditions you ignore really mean, how to save for a home when you have student debt, and steps for helping kids become financially savvy.

What to Buy (and Skip) in April
Spending your cash wisely.

What those terms and conditions really say
You could be giving up many consumer protections.

How To Save For A Home When You Have Student Debt
There are ways to manage both.

9 steps to helping kids and teens become financially savvy
A great way to celebrate National Financial Literacy month!

Thursday’s need-to-know money news

interest-rates-300x225Today’s top story: How to find the best mortgage interest rate. Also in the news: How to financially prepare for a spouse’s deployment, the biggest credit card mistakes made by millennials, and where to find the best St. Patrick’s Day deals.

How to Score the Best Mortgage Interest Rate
Finding the best interest rate on a mortgage that suits your needs.

How to Plan Financially for a Spouse’s Absence
Getting your finances in order before a spouse is deployed.

The 4 biggest mistakes millennials make when it comes to credit cards
Mistakes that can have long-term consequences.

The Best St. Patrick’s Day Sales and Deals of 2016
There are deals to be found at the end of the rainbow.

Before Filing Your Taxes With IRS, Consider This
There’s such a thing as too much information.

Friday’s need-to-know money news

taxesToday’s top story: How to write a retirement plan. Also in the news: The tax advantages of homeownership, tax tips for members of the military, and the billions of dollars in unclimed tax refunds.

How to Write a Retirement Plan
It’s a lot simpler than you might think.

Still Renting? You’re Missing These Tax Advantages
Homeownership has its benefits.

7 Tax Tips for Military Members
The IRS has special rules for military members.

The IRS Says They Have $1 Billion in Unclaimed Refunds, So Make Sure to Claim Yours
If you didn’t file taxes in 2012, you could be missing out on hundreds of dollars.

Monday’s need-to-know money news

invest-emergency-fundToday’s top story: How to build an emergency fund. Also in the news: Social Security mistakes to avoid, the best way to save for a down payment on a home, and what happens when your 401(k) gets too big?

How to Build an Emergency Fund
Creating a financial buffer.

Don’t Make These 3 Social Security Mistakes
Social Security isn’t one size fits all.

The best way to save for a down payment
Where you should keep your money before making a purchase.

Can your 401(k) account be too big?
How to avoid penalties and extra taxes.

Best Leap Day Sales and Deals of 2016
It only happens once every four years!

Friday’s need-to-know money news

o-CREDIT-REPORT-facebookToday’s top story: The best places to find a small-dollar loan. Also in the news: What is considered a bad credit score, things you don’t have to pay taxes on, and how not to lose money on your house by following the five year rule.

Where to Find a Small-Dollar Loan
Without paying astronomical interest.

What Is a Bad Credit Score?
Knowing the numbers.

7 Things You Don’t Have to Pay Taxes On
Some of these may surprise you.

Follow the Five Year Rule to Make Sure You Don’t Lose Money on Your House
Plan on staying put for a while.