Ask Liz Weston

Get smart with your money

Liz Weston

Wednesday’s need-to-know money news

By

Today’s top story: Why a home warranty may not give you the fix you crave. Also in the news: 4 reasons to spend your points and miles ASAP, why the best travel plan for this holiday season is a backup plan, and how to spot fake IRS letters.

Why a Home Warranty May Not Give You the Fix You Crave
Many homeowners are looking to home warranties for peace of mind, but to avoid unpleasant surprises, it’s important to understand the limits of what you’ve purchased.

4 Reasons to Spend Your Points and Miles ASAP
With fare increases and inevitable devaluations on the way, don’t wait to cash in your points and miles.

The Best Travel Plan for This Holiday Season Is a Backup Plan
The best-laid plans are the ones that can be changed when your flight gets delayed or your COVID test is positive.

How to Spot a Fake IRS Letter
For starters, real IRS letters won’t demand immediate payments on back taxes.

Money mistakes could signal dementia

By

Some of the early signs of dementia are financial: forgetting to pay bills, for example, or having trouble calculating a tip. People who develop dementia also are more likely to miss credit card payments and have subprime credit scores years before they’re diagnosed, according to a study published last year in medical journal JAMA Internal Medicine.

In my latest for the Associated Press, how to protect the finances and credit rating of a loved one while preserving their dignity and autonomy.

Tuesday’s need-to-know money news

By

Today’s top story: Should your business start accepting cryptocurrency? Also in the news: 5 features to look for in a personal loan, how the labor shortage could benefit your job hunt, and where to stash your down payment if you’re waiting for the housing market to crash.

Should Your Business Start Accepting Cryptocurrency?
While crypto can be easily adopted by e-commerce businesses, it’s less suited for traditional retail settings.

5 Features to Look For in a Personal Loan
When choosing between multiple low-rate personal loan offers, compare features like discounts and customer service.

Upgrade Your Job: How the Labor Shortage May Benefit You
As employers struggle to fill vacancies in many sectors, it’s a great time to consider changing jobs.

Where to Stash Your Down Payment If You’re Waiting for the Housing Market to Crash
When shopping for a new home, keep your down payment in a low-risk savings account.

Monday’s need-to-know money news

By

Today’s top story: ABLE accounts help people with disabilities save for the future. Also in the news: A new episode of the Smart Money podcast on holiday scams and paying off law school debt, how to vet holiday deals and avoid scams, and why you should sign up for AARP, even if you’re young.

ABLE Accounts Help People With Disabilities Save for the Future
Created by a federal law in 2014, Achieving a Better Life Experience — ABLE — accounts provide a way for people with disabilities to save money without losing public benefits.

Smart Money Podcast: Holiday Shopping Scams, and Paying Off Law School Debt
Scams consumers might encounter when holiday shopping this year.

How to Vet Holiday Deals and Avoid Scams
Prepare your budget and your shopping list. Then brush up on the latest scams and take advantage of deals when you find them.

Why You Should Join AARP, Even If You’re a Young Whippersnapper
You can enjoy a slew of senior citizen discounts without actually being a senior citizen.

Q&A: More about Medicare choices

By

Dear Liz: I’ve enjoyed your columns about choices between traditional Medicare and Medicare Advantage. I have a terminology question: What is the difference between a Medigap policy and a supplemental one? I have traditional Medicare and a supplemental plan, which covers the deductibles and copayments that Medicare doesn’t cover. According to your article, it seems a Medigap policy does the same. Please clarify and keep up the good work.

Answer: Medigap and supplemental policy are two terms for the same product: an insurance policy sold by private insurers to cover the “gaps” in Medicare coverage. If you have traditional Medicare (also known as original Medicare), it’s generally advisable to have a Medigap supplemental policy as well.

You can’t get a Medigap policy, however, if you have Medicare Advantage. Medicare Advantage is also provided by private insurers but is meant to be an all-in-one alternative to traditional Medicare, rather than a supplement to it.

Q&A: Two husbands. Which benefit?

By

Dear Liz: I am 66 and recently widowed after a five-year marriage. I was previously married and divorced after more than 20 years. I paid into Social Security as a professional for 20 years. How do I determine how to file for Social Security benefits? Should I just file for my benefits? Should I wait until I am over 70? Should I file for spousal benefits and, if so, for which husband?

Answer: Let’s take that last question first. You’re only eligible for spousal or divorced spousal benefits if the worker on whose record you’d be claiming is still alive. Spousal benefits can be up to half what the worker would get at the worker’s full retirement age. If the worker has died, by contrast, you could be eligible for survivor benefits, which can be up to 100% of the worker’s benefit.

So you may be eligible for three different types of benefits: your own retirement benefit, a divorced spousal benefit based on your ex’s record (because you were married at least 10 years) and a survivor benefit based on your late husband’s record (because you were married for at least nine months at the time of his death). Normally, you lose the ability to claim divorced spousal benefits when you remarry, unless the second marriage ends in divorce, annulment or death, as yours did.

Which one to claim and when will depend on the details of your situation. You can call Social Security at (800) 772-1213 to get estimates of what you’d get on each record. Consider using a paid service such as Social Security Solutions or Maximize My Social Security to help you figure out the best strategy for claiming benefits.