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Thursday’s need-to-know money news

June 25, 2020 By Liz Weston

Today’s top story: How “maximizers” can cut decision making angst. Also in the news: Know the options and risks of credit card relief, 7 smart spending strategies in a tough economy, and how to set up an 80/20 budget. ”

How ‘Maximizers’ Can Cut Decision-Making Angst
Avoid analysis paralysis and buyer’s remorse by focusing on the goals behind a money decision, not all the choices.

If You Need Credit Card Relief, Know the Options and Risks
Hardship programs can help people who don’t have good options for paying their bills, but they carry some risks.

7 Smart Spending Strategies in a Tough Economy
Tough times require smarter spending.

How to Set Up an 80/20 Budget
Paying yourself first.

Filed Under: Liz's Blog Tagged With: 80/20 budget, budgets, credit card relief, maximizers, spending decisions, spending strategies

Wednesday’s need-to-know money news

June 24, 2020 By Liz Weston

Today’s top story: A bargain hunter’s guide to used car shopping. Also in the news: Unlock savings with these little-known credit card benefits, finding the outperformers in the stock market, and 7 hacks you need to survive tax season.

A Bargain Hunter’s Guide to Used Car Shopping
The key to success is knowing where to look.

Unlock Savings With These Little-Known Credit Card Benefits
You could have purchase protection.

Looking for Recession-Proof Stocks? Find the Outperformers
Some are tried and true.

7 hacks you need to survive tax season
These tips will help get you through in one piece.

Filed Under: Liz's Blog Tagged With: outperformers, stock market, tax season, tips, used car shopping

How ‘maximizers’ can cut decision-making angst

June 24, 2020 By Liz Weston

No one wants to waste money, but some of us go overboard trying to get the best possible deal.

I have spent nearly as much time researching which hiking socks to buy as I have choosing a new car. Others of my species — we’re called “maximizers” — might miss locking in a good mortgage interest rate while waiting for a better one. Our determination to make the optimal choice means we’re often plagued by buyer’s remorse as well as decision paralysis.

Maximizers are the polar opposite of “satisficers,” people who make decisions once they’ve found an acceptable choice. Maximizers’ high standards mean we often get better outcomes, such as jobs that pay more, says financial therapist Kristy Archuleta, associate professor of financial planning at the University of Georgia. In my latest for the Associated Press, how maximizers can reduce their decision-making angst.

Filed Under: Liz's Blog Tagged With: maximizeres, satisficers

Tuesday’s need-to-know money news

June 23, 2020 By Liz Weston

Today’s top story: How to bank when you can’t go to the bank. Also in the news: Don’t fall for COVID-19 student loan relief scams, file your claim in the Yahoo data breach settlement by July 20, and how to hire a financial advisor who won’t rip you off.

How to Bank When You Can’t Go to the Bank
The pandemic has made in-person banking complicated.

Don’t Fall for COVID-19 Student Loan Relief Scams
Scammers are charging for free information.

File Your Claim in the Yahoo Data Breach Settlement by July 20
But don’t get too excited about the amount.

How to Hire a Financial Advisor Who Won’t Rip You Off
Trusting the right advisor.

Filed Under: Liz's Blog Tagged With: banking, Coronavirus, financial advisors, scams, Student Loans, Yahoo data breach settlement

Monday’s need-to-know money news

June 22, 2020 By Liz Weston

Today’s top story: 6 do’s and don’ts when saving money during a crisis. Also in the news: Cash accounts and apps to buddy up with your investments, a new episode of the SmartMoney podcast on preparing your money for a recession, and the relief period on your federally backed mortgage was just extended.

6 Do’s and Don’ts When Saving Money During a Crisis
Saving may be harder, but it’s worth it.

Cash Accounts and Apps to Buddy Up With Your Investments
Investing at your fingertips.

SmartMoney Podcast: Prepping Your Money for a Recession, What to Do with a $10,000 Inheritance
Preparing your money for the tough times ahead.

The Relief Period on Your Federally Backed Mortgage Just Got Extended
You now have until August 31st.

Filed Under: Liz's Blog Tagged With: apps, federally backed mortgage, Investments, mortgages, recession, saving money, SmartMoney podcast, tips

Q&A: Once is enough for tax returns

June 22, 2020 By Liz Weston

Dear Liz: You’ve covered the fact that 2019 tax refunds, especially for those of us who filed paper returns, are delayed. After days of trying to get through to someone at the IRS, I actually connected with an agent. After he told me there are massive problems in their mailroom, I said I was going to file again except this time I would do it electronically. His response, “Don’t do that because it will be a mess.” Can you check with your IRS contacts and see if they are adamant against refiling electronically?

Answer: Adamantly and emphatically, the IRS does not want people to file duplicate returns. Not only will that add to the agency’s already massive backlog, but duplicate returns can trigger identity theft protocols that could make it harder for you to file your returns in the future.

“The only time you would really want to file a duplicate return is when the IRS sends you a notice that the return you previously filed was never received,” said Henry Grzes, lead manager for tax practice and ethics at the American Institute of Certified Public Accountants. In the past, those notices were sent out 12 to 18 months after the return was due.

Many people have been waiting months for their refunds because of pandemic-related shutdowns. The IRS is slowly reopening the processing centers that were closed, but the backlog is tremendous. Although the agency was able to send out more than 150 million stimulus checks and to process most electronically filed returns, more than 10 million unopened paper returns and other mail had accumulated by mid-May.

The agency has been bringing back its workforce in stages, and the last of the IRS’ processing centers is scheduled to open June 29. In addition to the backlog, they’ll be dealing with even more filings as the extended July 15 tax deadline looms. In short, it’s unclear how much longer you’ll have to wait to get your refund.

The fact that you got through to a human being at all means you beat the odds. As mentioned in the previous column, the IRS was struggling even before the pandemic because of congressional budget cuts. Last year the agency was able to answer fewer than 1 in 4 phone calls, according to the Taxpayer Advocate Service.

Filed Under: Q&A, Taxes Tagged With: IRS, q&a, refund, Taxes

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