Ask Liz Weston

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Liz Weston

Wednesday’s need-to-know money news

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Today’s top story: How to handle college loan debt as an unemployed recent grad. Also in the news: Why you should sell your leased car instead of returning it, remote work visa opportunities, and why you should never pay an upfront fee for student loan debt relief.

How to Handle College Loan Debt as an Unemployed Recent Grad
Unemployed recent grads with student debt can apply for income-driven repayment or unemployment deferment.

Don’t Return Your Leased Car — Sell It
Rising used car values offer a chance to get out of a lease you can’t afford or even sell and pocket some cash.

Remote Work Visa Opportunities (and How to Get There on Points)
Looking to work remotely from somewhere new? These countries have developed special visas just for remote workers.

You Should Never Pay an Upfront Fee for Student Loan Debt Relief
Scams are rampant.

Tuesday’s need-to-know money news

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Today’s top story: How to create financial stability in shaky times. Also in the news: A new episode of the SmartMoney podcast on picking the best investing platform and reducing taxes, the Points Nerd on how travel could change after the pandemic, and good money habits that can hurt your credit.

How to Create Financial Stability in Shaky Times
It’s not just about cash flow.

Smart Money Podcast: Reducing Taxes, and Picking the Best Investing Platform
Finding the best platform to suit your needs.

Ask a Points Nerd: How Could Travel Change After the Pandemic?
Here are some predictions for travel trends that could become permanent post-pandemic.

Good Money Habits That Can Hurt Your Credit
Sometimes having a balance is a good thing.

Suddenly retired? Here’s what to do next

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The pandemic seems to be driving a surge of early retirements as businesses close or downsize and older people weigh the health risks of continuing to work.

The share of unemployed people not looking for work who called themselves “retired” increased to 60% in April from 53% in January, according to a study by three economists. The study was done in the early days of the pandemic, well before tens of thousands of businesses nationwide closed permanently and others began offering early retirement packages to trim their workforces.

In my latest for the Associated Press, how to avoid making hasty decisions that could cause you to run out of money.

Q&A: Finding someone to sell your stuff after you’re gone

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Dear Liz: I have a question on how to have my affairs managed after I die. I am single, with no children or living relatives, so finding someone to handle my estate is a challenge. Do you have a recommendation for where I can find a person or business, such as a bank’s trust department? I have a living trust but need to have someone sell all my assets (many are collectible and worth the extra effort in their sale). Do I need to go through probate just to ensure none of my assets are “lost” by the executor? Should I make a list of valuable items that would easily be omitted from the sale and distribution? To ensure all items are accounted for, to whom would I now provide the list?

Answer: Your living trust should name a successor trustee who can take over managing your affairs if you should become incapacitated or die. The successor trustee will be the one who will pay your final bills and sell or distribute your stuff after you’re gone. A list of your valuable items, along with the names of experts who can help with their sale, could help with that process. You can store that information with your living trust.

The person you choose doesn’t need to be a collectibles expert or even particularly financially savvy as long as they’ve got common sense and integrity. Successor trustees can hire any help that they need.

But this should be a person you trust completely because you’re putting a lot of power and discretion in their hands. If you’re worried this person will “lose” or mishandle your estate, you probably should choose someone else or reconsider having a living trust. Allowing your estate to go through probate instead would provide at least some court supervision of an estate’s distribution.

You may be able to hire a successor trustee. Bank trust departments can serve as successor trustees, but they tend to charge significant fees and are unlikely to want the job if your estate isn’t substantial. Another option might be a private trust services company or a professional fiduciary. Neither are exactly cheap, but they’re likely to be less expensive than a bank. Any of these options require making arrangements in advance — you can’t just name a company or fiduciary and expect them to take on the work.

Q&A: Survivor benefits and remarriage

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Dear Liz: Regarding your recent advice to the person whose husband had just died. I could be completely wrong, but I think that in order to collect her late husband’s benefits when she turns 60, she can’t remarry.

Answer: You’re right that you’re wrong, but your confusion is understandable.

There are different types of Social Security benefits that people can receive based on the earnings of a spouse or ex-spouse. People whose spouses or ex-spouses have died may collect survivor benefits. Those benefits can continue if the survivor remarries at 60 or later.

The other type of benefit is a spousal benefit, which is based on a living person’s earnings record and which may be available to current spouses as well as ex-spouses. Someone who is divorced and receiving spousal benefits based on an ex’s earning record will lose those benefits if they remarry at any age.

Q&A: Social Security earning years matter

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Dear Liz: In a recent column, you wrote that Social Security’s estimates of the dollar amount one will receive at various ages — 62, full retirement age of 66 to 67, or 70 — assumes one continues working until one applies. Therefore, one won’t receive the amount posted at full retirement age if one had stopped working at, say, age 62. Aren’t people’s benefits based on their top 35 earning years?

Answer: Yes, which is why I wrote that the benefit may be lower. Social Security assumes you’ll keep earning the same amount you are now. Those assumed future earnings could be high enough to replace one or more of your previous 35 highest-earning years. If that’s the case, your estimated benefit could be somewhat larger than the one you actually receive if you stop work early.