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Liz Weston

Thursday’s need-to-know money news

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Today’s top story: Should you save less for retirement? Also in the news: Can student loan forgiveness happen, a new congressional proposal would require IRA/401(k) withdrawals to start at 75, and how to spot fake reviews on Amazon.

Should You Save Less For Retirement?
An extremely early retirement goal may rob you of the joy of living now. Consider a revised path and second career.

Can Student Loan Forgiveness Still Happen?
Debt forgiveness of $10,000 would cancel debt entirely for about 15 million borrowers, according to a NerdWallet analysis of federal data.

Required IRA, 401(k) withdrawals would start at age 75 under congressional proposal. Here’s who would benefit
How your retirement savings might be affected.

How to Spot Fake Reviews on Amazon
Those five stars might be bought and paid for.

Wednesday’s need-to-know money news

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Today’s top story: Google, Walgreens and H&R Block want to be your bank. Also in the news: 6 packing and planning tips for long-term travel, the imminent return of international travel, and Verizon’s new children’s money management app.

Google, Walgreens and H&R Block Want to Be Your Bank
Companies are working with partner banks to offer FDIC-insured accounts through their own apps and platforms.

6 Packing and Planning Tips for Long-Term Travel
No matter how long you plan to work abroad, these preparations can help set you up for a smoother trip.

Ask a Travel Nerd: I’m Vaccinated — Can I Finally Go Abroad?
The return of international travel is imminent, but you’ll have to book soon and be flexible with your plans.

Verizon introduces a children’s money management app
It’s never too early to start teaching financial responsibility.

Should you save less for retirement?

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Gwen Merz was fresh out of college in 2014, working an information technology job she hated, when she decided early retirement was the answer. She socked away every dollar she could, saving as much as 70% of her income so that she could quit when she was 35.

Now 30, Merz thinks she may have saved too much. Her job and life goals have changed, but most of her $300,000 savings is in retirement accounts that can’t be touched without tax penalties. If she could do it over, she says she would either save less aggressively or put some of the money into a taxable investment account with less strict withdrawal rules.

“I would pay a little bit more in taxes on my salary but I would have that money available for me,” says Merz, who lives in St. Louis.

Some people save prodigious amounts so they can retire early or because they’re worried they won’t have enough for a comfortable retirement. But aggressive saving can have significant and sometimes unexpected costs. In my latest for the Associated Press, why it’s important to strike the right balance between saving for the future and living your life today.

Tuesday’s need-to-know money news

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Today’s top story: 4 small-business innovations that will outlast the pandemic. Also in the news: Banking tools that can help boost savings while paying off debt, preparing for an intense wildfire season in the western United States, and the best kind of car to buy in this inflated market.

4 Small-Business Innovations That Will Outlast the Pandemic
The innovative adaptations small-business owners were forced to make to their operations during COVID-19 may offer benefits for the future.

Banking Tools Can Help Boost Savings While Paying Off Debt
Common banking tools to use that can help you pay off debt while adding to your savings.

Get Ready for an Intense Wildfire Season in the Western U.S.
You should have an emergency plan, prepare your property and make sure your belongings are insured.

What’s The Best Kind Of Car To Buy In This Inflated Market?
Getting the most for your money.

Monday’s need-to-know money news

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Today’s top story: The pros and cons of selling your home to an iBuyer. Also in the news: A new episode of the Smart Money podcast on travel insurance and buying an electric car, 5 pandemic credit card habits to carry forward, and preparing your wedding budget for the reception resurgence.

Pros and Cons of Selling Your Home to an iBuyer
Figuring out your priorities — such as having a flexible schedule, getting the best price or minimizing stress — can help you decide whether selling to an iBuyer could work for you.

Smart Money Podcast: When Travel Insurance Is Worth It and Buying an Electric Car
What it offers, how much it costs and when you should purchase it.

5 Pandemic Credit Card Habits to Carry Forward
Among credit card holders whose credit limits were cut during the pandemic, 93% say their financial views or strategies changed because of it.

Is Your Wedding Budget Ready for the Reception Resurgence?
Wedding celebrations are back.

Q&A: When to claim Social Security

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Dear Liz: The common assumption seems to be that, in most cases, it’s a good idea to delay collecting Social Security because the longer you wait, the higher your monthly benefits will be. I will reach my full retirement age of 66 years and 2 months in July. According to the Social Security Administration website, my monthly benefit would get bumped up if I waited to start collecting until 66 years and 8 months, next February. The next bump wouldn’t be for another full year, at 67 years and 8 months. My current plan is to retire in March or April of next year. Is there any reason I shouldn’t start collecting my benefit as soon as I get to the 66 years and 2 months threshold?

Answer: It’s not clear what you were looking at, but your Social Security benefit earns delayed retirement credits every month you put off your application after your full retirement age. Those credits add up to 8% annually and increase your checks for the rest of your life.

Social Security can be complicated, and making the right claiming decision isn’t always easy, but your choice can have a huge impact on your future financial security. Please consult a fee-only, fiduciary financial planner before you retire so you can be confident you’re doing the right thing.