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Liz Weston

Thursday’s need-to-know money news

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Today’s top story: Start early to get your house retirement-ready. Also in the news: Why these federal student loan borrowers are out of luck, 5 options for people who can’t afford their tax bills, and why big tax refunds aren’t as great as they seem.

Start Early to Get Your House Retirement-Ready
Most homes aren’t ready for “aging in place,” but you could take steps now to make your home better for retirement.

These Federal Student Loan Borrowers Aren’t Getting Relief
FFEL borrowers are out of luck.

5 Options for People Who Can’t Afford Their Tax Bills
If you can’t afford your tax bill, consider an installment plan or an offer in compromise if you qualify.

Why Big Tax Refunds Aren’t As Great as They Seem
You’re giving the IRS a loan.

Wednesday’s need-to-know money news

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Today’s top story: College costs far outpace wages many students could earn. Also in the news: A look at earning hotel elite status in 2021, how California theme parks have adjusted to the pandemic, and how to claim your $10,200 unemployment tax break.

College Costs Far Outpace Wages Many Students Could Earn
Working can help cover college costs, but avoiding student loan debt with a part-time job is nearly impossible.

Is Hotel Elite Status Worth Considering in 2021?
With reduced elite status qualifications, this might be a good year to earn status that’s valid until ’22 or ’23.

Traveling to California? At Theme Parks, Food Is Main Attraction
For now, theme parks are turning into outdoor food venues.

How to Claim Your $10,200 Unemployment Tax Break
THere’s an important new provision in the American Rescue Plan.

Tuesday’s need-to-know money news

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Today’s top story: How many funds you should own to save for retirement. Also in the news: COVID tax breaks could open door to student loan forgiveness, better savers spend less money on these 3 things, and how to track your third stimulus payment.

How Many Funds Should I Own to Save for Retirement?
How many mutual funds investors should have depends on the type of fund — owning shares in one fund may be enough.

COVID Tax Break Could Open Door to Student Loan Forgiveness
Could we see student loan forgiveness this year?

Better Savers Spend Less Money on These 3 Things
Better savers spend less, as a percentage of income, on housing, food and beverage, and transportation.

How to Track Your Third Stimulus Payment
Payments have begun hitting bank accounts.

Start early to get your house retirement-ready

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Many people want to remain in their homes after they retire rather than move to a senior living facility or community. Unfortunately, most homes aren’t set up to help us age safely and affordably.

If your goal is to “age in place,” some advance preparation could help make that possible — or point to better alternatives.

“Somewhere in your 50s, hopefully, you’re starting to think seriously about are you going to be able to stay in the house you’re in? Or are you going to need to make changes?” says DeDe Jones, a certified financial planner in Denver.

In my latest for the Associated Press, changes you need to consider to get your house retirement ready.

Monday’s need-to-know money news

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Today’s top story: Does Medicare cover COVID testing and vaccines? Also in the news: A new episode of the Smart Money podcast on procrastination and paying student loans vs investing, 3 ways COVID has reshuffled our finances, and how the car you drive can raise your auto insurance rates.

Does Medicare Cover COVID Testing and Vaccines?
In general, Medicare and Medicare Advantage plans cover COVID-19 tests, treatments and vaccines.

Smart Money Podcast: Procrastination, and Paying Student Loans vs. Investing
How to stop procrastinating on big money tasks.

3 Ways COVID-19 Reshuffled Our Finances
Three financial trends we can chalk up to the coronavirus pandemic.

How the Car You Drive Can Raise Your Auto Insurance Rates
The cost of your car isn’t the only way your vehicle affects your auto insurance bill.

Q&A: Boosting Credit Scores

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Dear Liz: I’m frustrated with my FICO scores. At one point they were well into the 800s and now they languish in the 720 to 730 range. I have no debt — no mortgage or car loan — and fully pay off two credit cards monthly. I have millions (fact, not bragging) in assets with no liabilities. I don’t anticipate taking any loans but it is so odd to me. Why is this?

Answer: You likely had at least one installment loan, such as a mortgage or car loan, when your scores were near the top of FICO’s typical 300-to-850 scale. You can still have good scores without an installment loan — and you do — but the highest scores require you to have a mix of credit types.

You might be able to add a few points to your scores by paying attention to your credit utilization — the less of your credit limit you use, the better. Adding another card or two may ding your scores in the short run but also could add points long term.

Or you can just be happy as you are. As long as you continue to use your cards responsibly, you’ll continue to have scores that are “pretty enough for all normal purposes” — in other words, that will get you good rates and terms should you decide to apply for additional credit.