Ask Liz Weston

Get smart with your money

Liz Weston

Wednesday’s need-to-know money news

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Today’s top story: How to be a 5-Star traveler this holiday season. Also in the news: How to plan holiday travel if your kids aren’t fully vaccinated yet, President Bideb acts to ease gas prices, and how to avoid the line at the airport bag check counter.

How to Be a 5-Star Traveler This Holiday Season
Our travel expert shares tips to be a courteous and less-stressed traveler during the busy travel season.

How To Plan Holiday Travel if Your Kids Aren’t Yet Fully Vaccinated
Traveling with unvaccinated children is a matter of your own comfort level, but there are precautions you can take.

Biden Acts to Ease Gas Prices, But You Can Save Money Now
President Joe Biden is working to bring down gas prices, but drivers can take steps to reduce their fuel bill now.

How to Avoid the Line at the Airport Bag Check Counter
Hold airline elite status, purchase an upgrade or pack light to cut down on waits at bag check.

3 times you need money advice from a human

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You can now manage most aspects of your money without ever consulting another human being. You can budget, borrow, save, invest, buy insurance, prepare your tax return and create a will — among many other tasks — by using apps, websites and software.

But technology still has limitations, especially when you’re facing a money situation that’s complex or involves judgment calls. In my latest for the Associated Press, when to consider consulting a human expert.

Tuesday’s need-to-know money news

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Today’s top story: 4 common winter home insurance claims and how to prevent them. Also in the news: How long it will take to pay off your MBA debt, huge Disney park changes for 2022 and tips on how to fund your trip, and why the catch with Buy Now Pay Later could be your credit.

4 Common Winter Home Insurance Claims and How to Prevent Them
Winter-induced home damage can sometimes be prevented, but sufficient insurance coverage may cover even the most bitter disaster.

How Long Will It Take to Pay Off Your MBA Debt?
Your student loan repayment strategy will determine how long it takes to pay off your MBA debt.

Huge Disney Park Changes for 2022, and How to Fund Your Trip
Disney announced a slew of new rides and shows during its Destination D23 event in November at Walt Disney World.

The Catch With Buy Now, Pay Later Could Be Your Credit
Buy now, pay later plans promise no interest or hidden fees, but they don’t typically help you build credit.

Monday’s need-to-know money news

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Today’s top story: Cash advance apps can hurt more than help at the holidays. Also in the news: Lawsuit against Marriott makes hotel pricing math easier, Black Friday 2021 store hours and online hacks, and what to do when inflation cuts into your black Friday deals.

Cash Advance Apps Can Hurt More Than Help at the Holidays
Cash advance apps offer a boost at the holidays, but consumer advocates say they could lead to a cycle of debt.

Lawsuit Against Marriott Makes Hotel Pricing Math Easier
Marriott commits to a policy that would be transparent in the disclosure of mandatory fees like resort fees.

Black Friday 2021 Store Hours and Online Hacks
Many stores are closed for Thanksgiving as Black Friday discounts span weeks rather than just days.

What to Do When Inflation Cuts Into Your Black Friday Deals
Inflation will cut into Black Friday deals this year, but there are strategies you can use to soften the blow.

Q&A: Where should you keep your estate planning documents?

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Dear Liz: What do you do with your will or living trust once it’s created? Do you put the document in your home safe or a safe deposit box at the bank? Leave it with a friend or relative? What’s to prevent someone who has access to your property from destroying that document? I heard of such a case where the will was never found and the wrong relative took everything.

I imagine you could leave it with your attorney with instructions to ensure it is abided by upon your death. But who will contact the attorney after your death to ensure your wishes are abided by? I know the coroner won’t do it, nor a funeral home.

Answer: Definitely don’t put the original document in a safe deposit box. Once notified of your death, your bank will typically seal the box until your executor can prove they have the legal right to retrieve it — and that will be complicated if the document naming them as executor is in the box.

Keeping the original in your own safe is better than leaving it at the bank, but still not ideal if you fear someone with bad intent could access it. For most people, the best option is to leave the original with their attorney. You can provide copies to your executor and other trusted people and give them your attorney’s contact information.

Q&A: Be wary of advisor motives

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Dear Liz: In a recent column, you discussed the difference between fee-only vs fee-based financial planners. Most of my retirement dollars are in an IRA with one of the better-known investment companies. One of the advisors with that firm has advocated for an annuity with a well-known insurance company as a component of my portfolio. So, does this affect the advisor’s status of fee-only vs fee-based, or is this person to be only on the fee-based side of the equation? Or am I just confused?

Answer: You’re confused because it’s confusing — deliberately so. Many investment companies, including the better known ones, don’t make it clear that their advisors do not have to put your best interests first. Most are held to a lower “suitability” standard that allows them to recommend an investment that isn’t as good as the alternatives, simply because it pays them a higher commission.

If you want an advisor that puts your interests ahead of their own, seek out a fee-only financial planner — one who only accepts fees paid by clients rather than commissions and other incentives. This advisor should be a fiduciary, meaning the advisor is required to put your best interests first. The advisor must be willing to state, in writing, that they will put your interests ahead of their own.

It’s especially important to check with such a fiduciary advisor before purchasing an annuity, since these are complex products with potentially significant downsides that could be glossed over by someone who’s being paid to sell you one. An annuity could be the right fit for you, or it could be an expensive mistake. Get an objective review from a fiduciary before you buy one.