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Liz Weston

Thursday’s need-to-know money news

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Today’s top story: When a will won’t work. Also in the news: 6 gift categories unaffected by supply chain delays, 3 ways to tap the unexpected equity in your leased car, and alternatives to backdoor Roths.

When a Will Won’t Work
Consider the limitations of a will when making arrangements for your final wishes.

6 Gift Categories Unaffected by Supply Chain Delays
Products from local businesses, handmade items and digital gifts are among the categories unaffected by delays.

3 Ways to Tap the Unexpected Equity in Your Leased Car
Despite new restrictions on selling to a third-party dealer, you do have options for accessing leased car equity.

Congress Is Targeting Backdoor Roths. Here Are Some Alternatives
The backdoor Roth, or Roth conversion, helps high earners move money into investments that can grow tax-free.

Wednesday’s need-to-know money news

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Today’s top story: How to prepare for holiday crowds and chaos at airports. Also in the news: 9 ways to travel more safely, what you need to know about Medigap Plan N, and how to squeeze another 20K miles out of your current car.

How to Prepare for Holiday Crowds and Chaos at Airports
Get some relief from the brunt of holiday travel by having your memberships, status and luggage in order.

9 Ways To Travel More Safely
Whether you’re traveling within the U.S. or to a foreign country, you can take extra precautions to stay safe.

What Is Medigap Plan N? What You Need to Know
Medigap Plan N, a type of Medicare Supplement Insurance, is a good option if you don’t visit the doctor frequently.

Squeeze Another 20K Miles Out of Your Current Car
High demand and low inventory have increased new car costs. Save money by getting 20K more miles out of your current car.

Tuesday’s need-to-know money news

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Today’s top story: Don’t let Black Friday debt trigger post-holiday blues. Also in the news: Things to do by year-end for your investments, November mortgage rates continue to rise, and how to shop now and get Black Friday prices later.

Don’t Let Black Friday Debt Trigger Post-Holiday Blues
Prioritize needs, budget your spending, then make a savings plan for next year’s expenses.

Investing Checklist: Things to Do by Year-End
Implementing investing strategies before the end of the year can help maximize your money.

Mortgage Outlook: November Rates Continue Marching Uphill
Rates continue to rise.

You Can Shop Now, and Get Black Friday Prices Later
A few major retailers will retroactively match Black Friday deals.

When a will won’t work

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A will allows you to distribute your worldly goods, select a guardian for minor children and name an executor to carry out your wishes.

But you should be aware of what a will can’t or shouldn’t do. This is particularly true if you’re drafting your own document without an attorney’s help, since you could unknowingly make a mistake that upends your whole estate plan.

In my latest for the Associated Press, learn what a will can, cannot, and shouldn’t do.

Monday’s need-to-know money news

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Today’s top story: 6 benefits that could help small businesses keep employees. Also in the news: A new episode of the Smart Money podcast on cryptocurrency and improving credit to buy a house, what to buy (and skip) in November, and 4 ways to sustain savings habits from the pandemic.

6 Benefits That Could Help Small Businesses Keep Employees
Convincing your employees to stay.

Smart Money Podcast: 3 Crypto Questions, and Improving Credit to Buy a House
Three questions you should ask yourself before buying crypto or investing in the industry.

What to Buy (and Skip) in November 2021
Black Friday approaches…

4 Ways to Sustain Savings Habits From the Pandemic
Keeping the good habits you built.

Q&A: When mortgage shopping, does checking your credit scores lower them?

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Dear Liz: We’re trying to refinance a mortgage. All of the mortgage lenders claim that checking our credit scores will not affect the scores. However, that is not true. What gives? The three credit bureaus all list “too many inquiries” and penalize us. Does calling them do any good or make it even worse?

Answer: Checking your own scores is considered a soft inquiry that has no effect on your scores. When a lender checks your scores, there can be a small ding, but credit scoring formulas also have a feature that reduces the effect when you’re shopping for a mortgage.

Essentially, all the mortgage inquiries made within a certain amount of time are grouped together and counted as one. In addition, the formulas ignore any mortgage inquiries made within the previous 30 days. The amount of time you can shop varies with the credit scoring formula, so it’s generally a good idea to concentrate your shopping into a two-week period.

What you don’t want to do when you’re in the market for a mortgage is to apply for other credit. Those inquiries are not grouped with your mortgage inquiries. The effect of these inquiries fades quickly and is usually pretty small — typically 5 points or less for FICO scores, for example. But even a small ding could cause you to pay more in interest if your scores aren’t already excellent.