Ask Liz Weston

Get smart with your money

Liz Weston

Thursday’s need-to-know money news

By

Today’s top story: How to get what you want at your next job. Also in the news: Some travelers could benefit from a Spirit-Frontier merger, the most romantic money moves you can make, and how to lock in Amazon Prime at the old rate.

How to Get What You Want at Your Next Job
Tips from career coaches on being strategic with your job search, preparing for negotiations and asking for what you want.

Yes, Some Travelers Could Benefit From a Spirit-Frontier Merger
The merger might actually have something to offer cost-conscious leisure travelers.

The Most Romantic Money Moves You Can Make
Valentine’s Day can trigger spending on your loved one, but instead, consider setting up a money date.

How to Lock in Amazon Prime at the Old Rate (at Least for a Year or Two)
Amazon Prime rates are going up—but there’s an easy way to temporarily skirt the system.

Wednesday’s need-to-know money news

By

Today’s top story: Should you get travel insurance for your spring break trip? Also in the news: Credit cards charge ahead with rewards for driving electric, what you need to know about multicurrency accounts, and 4 ways to save on bachelor and bachelorette parties.

Should You Get Travel Insurance for Your Spring Break Trip?
Check what coverage you might already have before deciding to purchase additional insurance.

Credit Cards Charge Ahead With Rewards for Driving Electric
https://www.nerdwallet.com/article/credit-cards/why-credit-cards-are-charging-ahead-with-ev-related-rewards?utm_campaign=ct_prod&utm_source=syndication&utm_medium=wire&utm_term=lizlizweston-com&utm_content=1132190
Automakers see a future with a lot more electric vehicles, and credit cards are starting to plug incentives for drivers who make the switch.

Multicurrency Account: What Is It and How Does It Work?
A multicurrency account lets you spend and hold different currencies to make managing life or work abroad easier.

4 Ways to Save Money on Bachelor or Bachelorette Parties
They’re not getting any cheaper.

Tuesday’s need-to-know money news

By

Today’s top story: IRS scraps plan to use ID.me selfies for account verification. Also in the news: How to approach taxes if you traded cryptocurrency in 2021, only 23% of investors align their investments to their values, and how to choose the right cryptocurrency wallet.

IRS Scraps Plan to Use ID.me Selfies for Account Verification
The IRS walks back a directive that would have required taxpayers to submit a video selfie to access their online accounts.

Traded Cryptocurrency in 2021? Here’s How to Approach Taxes
With the tax-filing deadline just a few months away, those who traded cryptocurrency last year should understand their tax liability.

Survey: Just 23% of Investors Align Most Investments to Their Values
Socially responsible investing is gaining in popularity, but there’s a pronounced gap between those who value it and those who actually invest this way.

How to Choose the Right Cryptocurrency Wallet
All your cryptocurrency has to be stored somewhere—here’s how to choose the right crypto wallet for your needs.

Monday’s need-to-know money news

By

Today’s top story: Do you really need a million dollar life insurance policy? Also in the news: A new episode of the Smart Money podcast on stock market shakiness, DIY vs Calling a Pro, and everything you need to know about your next side hustle.

Do I Really Need a Million-Dollar Life Insurance Policy?
You don’t need to be a millionaire to qualify for a large life insurance policy.

Smart Money Podcast: Stock Market Shakiness, and Car Buying in 2022
In dealing with stock market jitters and the need to replace a car this year, patience can really pay.

DIY or Call a Professional: Which Is Right for Your Remodel?
You can save money on easier home updates, but call an expert if a project involves plumbing or electrical work.

Everything You Need to Know About Your Next Side Hustle
You’ve heard that the grind never stops. But how do you get the grind to start?

Q&A: Plan for taxes after mortgage payoff

By

Dear Liz: In a recent column, you answered a question from a couple who just paid off their mortgage. You suggested increasing retirement or emergency savings or possibly charitable contributions. All good, but you should have pointed out that the mortgage lender will not be responsible for paying the property tax and fire insurance going forward. I would suggest the couple open a separate account and build up a fund to pay those expenses or they could be facing financial hardship when the tax and insurance bills come.

Answer: Good point. Many homeowners are accustomed to paying their homeowners insurance and property taxes through escrow accounts set up by their mortgage lenders. Once the loan is paid off, these bills become the homeowners’ responsibility to pay.

Q&A: Social Security is insurance

By

Dear Liz: My wife died in March 2020. I receive nothing from her Social Security (other than $255) and will receive only a portion of mine due to the windfall elimination provision. Is there anything I can do since I am receiving none of what she paid into Social Security and only a fraction of mine?

Answer: In a word, no. If you’re receiving a pension from a job that didn’t pay into Social Security, the government pension offset reduces any Social Security survivor or spousal benefit by two-thirds of the amount of your pension. If two-thirds of the amount of your pension is greater than your survivor benefit, you don’t get a survivor benefit.

Is that an outrage? Perhaps, if you think that Social Security should act like a retirement account. In reality, it’s insurance. (The formal name for Social Security is Old Age, Survivors and Disability Insurance.)

With a retirement account, what you take out usually bears some relationship to what you put in. With insurance, that’s not necessarily the case. You may take out more than you put in, less or nothing at all.

Many people pay Social Security taxes for decades but ultimately get more from a spousal or survivor benefit than from their own work record. Then there are those, like you, who have their retirement benefit reduced, or a survivor benefit eliminated, because they have a generous pension from a government job that didn’t pay into the Social Security system. In these cases, it can feel like the Social Security taxes paid — the “premiums,” if you will — have been wasted even if financially you’ve come out ahead.