Ask Liz Weston

Get smart with your money

Liz Weston

Q&A: Investing a windfall

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Dear Liz: My husband and I are retired and recently inherited a large sum of money. We already have money of our own invested and have a good income. Would a whole-life insurance policy based on an index account be a good place to put this money?

Answer: The insurance agent trying to sell you that policy certainly thinks so, because it’s an expensive product that would generate a substantial commission. You’d be smart to get a second opinion from a fee-only financial planner that doesn’t profit from the investments they recommend.

Q&A: Refinancing in your golden years

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Dear Liz: I just wanted to comment on a recent question about refinancing a mortgage in retirement. The writer wrote: “… at 67 and 72 years old, it’s unlikely that both of us will survive for another 15 years to pay off this loan.” This seems an old way of thinking about age. The obituaries in my paper are full of people who have lived into their 90s and even past 100 years old!

Answer: Good point. People often misjudge life expectancies, which over time have lengthened considerably. At 67, a typical female could expect to live nearly 19 more years, according to Social Security’s life expectancy tables, while a male at 72 has a 13-year life expectancy. People with higher incomes, good health and good habits (nonsmokers, for example) could add many years to those estimates.

Thursday’s need-to-know money news

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Today’s top story: How to bounce back from an income drop. Also in the news: 5 tips for fostering a successful hybrid workplace, is the Fed to blame for high home prices, and why right now might be the best time to sell your car.

When Your Income Drops, Here’s How to Bounce Back
Recovering from an income drop depends on quickly cutting back expenses while also tackling the emotional stress.

5 Tips for Fostering a Successful Hybrid Workplace
Breaking old office habits and seeking employee input early and often can help create a successful hybrid workplace.

The Property Line: Blame the Fed for High Home Prices?
House prices are skyrocketing for multiple reasons. The Federal Reserve is just one piece of the puzzle.

Why Now Might Be the Best Time to Sell Your Car
Used cars have never been hotter.

Wednesday’s need-to-know money news

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Today’s top story: 5 ways to prepare and pack for COVID-Era travel. Also in the news: 8 safety tips for solo female travel, how doing a subscription detox could plug monthly budget leaks, and how to take advantage of (and keep) a high credit score.

5 Ways to Prepare and Pack for COVID-Era Travel
A lot has changed in the travel world since the pre-pandemic days of 2019.

8 Safety Tips for Solo Female Travel
Traveling solo as a woman has its challenges, but these tips can help you avoid unwanted situations.

Doing a Subscription Detox Could Plug Monthly Budget Leaks
Take a look at auto-renewing subscriptions — should you go cold turkey or use a more targeted approach?

How to Take Advantage of (and Keep) a High Credit Score
Reaping the rewards.

Tuesday’s need-to-know money news

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Today’s top story: 4 common debt consolidation mistakes and how to avoid them. Also in the news: Inflation could be sapping your pandemic savings, how your driving habits can lower your insurance bills, and how lifestyle creep can erode your savings one raise at a time.

4 Common Debt Consolidation Mistakes and How to Avoid Them
Before you consolidate, build your credit, assess your budget and compare consolidating to other debt payoff strategies.

As Pandemic Saving Settles, Inflation Could Sap Your Surplus
In the midst of the coronavirus pandemic, many Americans have been able to tuck away more cash than ever before.

How Your Driving Habits Can Lower Your Insurance Bill
Telematics insurance can help you lower your car insurance rates, as long as you’re a safe driver.

Lifestyle Creep: Eroding Your Savings, One Raise at a Time
Lifestyle creep may put your retirement savings at risk more than anything else.

Monday’s need-to-know money news

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Today’s top story: 3 things to do before you buy crypto. Also in the news: A new episode of the Smart Money podcast on back to school shopping and breaking bad money habits, student debt is canceled for borrowers with disability, and 6 ways to make your business more agile.

3 Things to Do Before You Buy Crypto
All your friends are doing it. Should you invest in crypto, too? Take it slow and meet other money goals first.

Smart Money Podcast: School Supply Shopping and Breaking Bad Money Habits
How to save money when back-to-school shopping this year.

Student Debt Canceled for Borrowers With Disability; $10K Forgiveness Stalled

6 Ways to Make Your Business More Agile
Small businesses with agility can quickly pivot to survive disruptions and take advantage of opportunities.