Thursday’s need-to-know money news

Today’s top story: 5 pieces of popular tax advice that are actually baloney. Also in the news: VW aims to plug into nostalgia with the electric bus, Social Security is underpaying thousands of widows and widowers, and 33% of Americans don’t have more savings than credit card debt.

5 Pieces of Popular Tax Advice That Are Actually Baloney
Popularity doesn’t make them true.

VW Aims to Plug Into Nostalgia With Electric Bus
We’re going back to the 60’s.

Social Security underpays thousands of widows and widowers
Claiming a larger benefit.

33% of Americans do not have more savings than credit card debt
A third of the country is in trouble.

Q&A: Credit freezes complicate setting up online Social Security accounts

Dear Liz: You’ve recently written about protecting ourselves by establishing online Social Security accounts. Social Security prevents me (or anyone else) from creating an online account because I have credit freezes in place. As I understand the process, Social Security uses the credit bureaus to verify my identity. With a freeze, there’s no identity verification. In other words, in order to set up a fraudulent online account, someone besides me would have to unfreeze my credit report first. Is that correct?

Answer: Pretty much. Another way to establish an online account is to go into a local Social Security office with proper identification. But most hackers are unlikely to take the trouble to do either.

You may still want to create an online account to monitor your Social Security earnings record and promptly correct any mistakes or spot employment fraud (someone using your number to get work).

You could make a trip to a Social Security office or temporarily lift your freeze with the bureau that’s providing identity verification services. Currently, that bureau is Equifax — and yes, that’s the bureau that suffered the massive database breach that started this discussion.

Tuesday’s need-to-know money news

Today’s top story: How to live below your means without feeling deprived. Also in the news: How to dodge the drama of family loans, the launch of Apple Pay Cash, and using Social Security benefits to plan your retirement income.

How to Live Below Your Means Without Feeling Deprived
It doesn’t have to be a slog.

Family Loans: How to Dodge the Drama
Coping with one of the touchiest subjects.

Apple Pay Cash Launches: How It Stacks Up
A new money transfer app.

An almost perfect retirement income source
Using Social Security benefits to plan your retirement income

Q&A: Here’s a way to fight Social Security fraud

Dear Liz: To make us less likely to become victims of fraudulent activity, years ago I froze our credit bureau files. I assume the Social Security Administration could be hacked as well. Can those files be frozen?

Answer: No, but you can create an online account to track and monitor your Social Security records — and it’s probably a good idea to do so. Fraudsters are creating such accounts and using them to divert benefits onto prepaid debit cards. If you created yours first, this fraud will be harder to pull off. If someone has already created an account in your name, you can find out and start the process of taking back your identity. The place to set up your account is

Friday’s need-to-know money news

Today’s top story: How to mend holes in your budget with a little needle and thread. Also in the news: Understanding online loans, the cybersecurity best practices for small businesses, and a 2% boost is on the way for Social Security in 2018.

Mend Holes in Your Budget With a Little Needle and Thread
Easy repair measures.

Understanding Online Loans
Reading the fine print.

Cybersecurity Best Practices for Small Businesses
Protecting your digital assets.

Social Security benefits to get 2% boost in 2018
A small raise is in the future.

Q&A: Starting Social Security benefits early will cost you

Dear Liz: I started getting Social Security at age 62. I would have only gotten $327 a month based on my work history, but they gave me $666 based on my husband’s work history. He gets $1,966 but your article said I should get half. Should I be receiving more?

Answer: Probably not.

Your spousal benefit would have been half of your husband’s “primary benefit amount” only if you’d waited until your own full retirement age to apply. Because you started several years early at 62, your check was reduced by 30%.

His primary benefit amount is what he would have received if he started benefits at his own full retirement age. Full retirement age is currently 66 and will rise to 67 for people born in 1960 and later.

Q&A: When waiting to take Social Security doesn’t make sense

Dear Liz: I receive $2,400 per month in Social Security. My wife, who turned 66 in early April, was told by the Social Security Administration that her retirement benefit will be about $800. Can I get spousal benefits for her of $1,200, less what her Social Security amount will be? My problem is that she wants to wait to get her maximum amount of Social Security. Could she start spousal benefits now or does she have to wait until age 70?

Answer: Waiting would be pointless. Even though she would boost her retirement benefit by 8% each year, or a total of 32% by age 70, she still would receive less than if she just signed up for spousal benefits now.

Because she has reached her full retirement age of 66, her spousal benefit would equal 50% of what you’re receiving. (Technically, she will receive her own benefit plus an additional amount that brings her up to 50% of your benefit.)

Delayed retirement credits, which increase retirement benefits between full retirement age and age 70, don’t compound but increase benefits by two-thirds of 1% each month. There are no delayed retirement credits for spousal benefits, but spousal benefits are reduced when people start them before their own full retirement age.

Thursday’s need-to-know money news

Today’s top story: How teachers can ace retirement without Social Security. Also in the news: Why credit cards are serving big restaurant rewards, making sure your spending personality matches your credit cards, and the one mistake that can cost millennials millions.

Teachers: Here’s How to Ace Retirement Without Social Security
It varies from state to state.

Why Credit Cards Are Serving Big Restaurant Rewards
Everyone has to eat.

Does your spending personality match your credit cards?
Make sure you’re earning rewards you’ll actually use.

This one mistake can cost millennials millions
Stop avoiding the stock market.

Q&A: Social Security lets you un-retire to avoid a benefit hit, but only once

Dear Liz: My wife recently retired at age 62 and will collect Social Security. But she has decided to return to work full time. I know she will collect less if she makes more than Social Security allows per month. If she eventually goes back to not working at all, can she go back to collecting the original amount?

Answer: Yes, but she’d be smart to reconsider her decision to start collecting Social Security early because she’s permanently reducing her benefit for little (if any) good reason.

The earnings test, which applies when people start Social Security early, takes away $1 of benefits for every $2 she earns over a certain limit, which is $16,920 in 2017. The earnings test will end when she reaches her full retirement age, which for people born in 1955 is 66 years and two months. Her check at that point would be what she originally received at 62, plus any cost of living increases.

But that original check is reduced by nearly 25% from what she would get at full retirement age, and the reduction lasts for the rest of her life. That’s a huge hit, and it should make her question the advisability of starting benefits early when so much could be taken away from her.

Fortunately, she has a little time to change her mind. Social Security allows applicants to withdraw their applications, allowing their benefit to continue growing, if they do so within 12 months of becoming entitled to benefits. People who withdraw their applications have to pay back any benefits that received in order to restart the clock.

This is a one-time do-over: Applications can be withdrawn only once in a lifetime and can’t be withdrawn after a year has passed. She can read more about this at the Social Security site,

Social Security benefits make up half or more of most people’s retirement income. Making smart decisions is essential if you want to avoid a lifetime of regret.

At a minimum, people should use a free claiming-strategies calculator, such as the one on the AARP site, to determine when and how to begin benefits. For $40, they can use more sophisticated planners such as and

Another good option is to consult a fee-only financial planner familiar with Social Security claiming strategies to make sure they’re not making an irrevocable mistake.

Q&A: When a government pension doesn’t reduce Social Security benefits

Dear Liz: I have contributed to Social Security for 40 years and have no government pension. My husband selected a reduced teacher’s pension so I would receive that same amount should he predecease me. Will my Social Security be reduced in this scenario?

Answer: No. The provisions that may reduce Social Security payments such as the government pension offset and the windfall elimination provision apply only to the person receiving the pension, not the spouse. If he dies first, your income would remain the same. If you die first, his survivor’s benefit from Social Security could be reduced or eliminated.