Get smart with your money
Today’s top story: 3 Signs you’re ready to retire. Also in the news: 2022 Tax bracket, and buying budget tech.
Reluctant to Retire? 3 Signs You’re Ready
Some people do have a choice about when they retire, and yet they can’t quite bring themselves to quit working.
Your Tax Bracket Just Changed for 2022
Federal tax brackets will have the highest inflation-adjusted increase in years.
Stop Buying Cheap Tech
“It was such a great deal,” they said, tossing their new tech into the trash.
Today’s top story: Prices are skyrocketing, and how to lessen the impact. Also in the news: How to talk to your parents about estate planning, air fryer Black Friday 2021 deals, and why travel insurance is a great holiday gift to yourself.
Prices Are Skyrocketing: Here’s How to Lessen the Impact
Inflation reached a 30-year high in October, according to fresh CPI data from the U.S.Bureau of Labor Statistics.
Why (and How) to Talk to Your Parents About Estate Planning
Help ensure that everything plays out the way Mom and Dad would want.
Air Fryer Black Friday 2021 Deals: Are They Worth It?
Target is discounting a 5-quart air fryer by $60, and Macy’s has air fryers starting at $24.99.
Consider Gifting Yourself Travel Insurance Ahead of the Holidays
Buy yourself some peace of mind by getting travel insurance, either through your credit card or a full policy.
Today’s top story: Care about your credit score? Get strategic with card limits. Also in the news: Buy now, pay later traps, and what to know about bitcoin as it approaches $70,000.
Care About Your Credit Score? Get Strategic With Card Limits
Actively managing how much of your credit limits you are using can make a big impact on your credit score.
Watch Out for These Buy Now, Pay Later Traps
Among its pitfalls, buy now, pay later can tempt you to take on too much debt, and it may not help your credit.
What to Know About Bitcoin as It Approaches $70,000
Bitcoin is trading near all-time highs and crossed a record $68,000 at the beginning of this week.
Many people don’t have much choice about when they retire. Illness, job loss or caretaking responsibilities push them out of the labor force, ready or not.
But some people have the opposite problem: They do have a choice, and yet they can’t quite bring themselves to quit working.
In my latest for the Associated Press, check three signs you may be ready to retire.
Today’s top story: Should you bank with your brokerage?Also in the news: AirPods Black Friday 2021 deals, Smart Money Podcast on the benefits of being boring with your money, and saving money even back at the gym.
Should You Bank With Your Brokerage?
A cash management account can make it easier to invest, and CMAs have their own unique banking-style benefits.
AirPods Black Friday 2021 Deals: Are They Worth It?
Amazon and Best Buy are marking the AirPods Pro down to $189.99.
Smart Money Podcast The Benefits of Being Boring With Your Money, and Why to Make a Will ASAP
The benefits of being boring with your money.
Quitting Peloton? You Can Save Money, Even Back at the Gym
Peloton’s weak earnings data indicates that people are quitting at-home workouts. It could save you money, too.
Dear Liz: A reader recently asked about passing a $500,000 inheritance to their children. You mentioned the option of disclaiming, or refusing the inheritance so that it would go to their kids. You wrote, “If you decide not to disclaim and later give the entire $500,000 to your kids, you wouldn’t have to pay gift taxes until you gave away considerably more. Plus, gifts are tax free to the recipients.” Are you possibly mixing up gifting and inheriting? As I understand it, gifting to your kids is limited to something like $15,000 per parent per kid. Unless you have a huge family, that’s not going to add up to $500,000 of tax-free giving.
Answer: Many people get confused about how gift taxes work. The gift and estate tax systems are intertwined, causing further confusion.
There’s no limit on how much you can give away during your lifetime: You can give as much money as you want to as many people as you want. If you give more than $15,000 to any one recipient in a given year, however, you’re required to file a gift tax return. That doesn’t mean you owe gift taxes.
The amounts over $15,000 count against your lifetime estate and gift tax exemption, which is currently $11.7 million per person. So if you give someone $20,000, the extra $5,000 would be deducted from your $11.7-million lifetime exemption. Only after you exhausted that lifetime exemption would you owe gift taxes.