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Liz Weston

Wednesday’s need-to-know money news

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Today’s top story: How mortgage refinancing could save you money even if your loan is new. Also in the news: Where to stash your savings when cash management account rates take a dive, how to stock up wisely, emergency or not, and what the “history” part of your credit score really measures.

Mortgage Refinance Could Save Money — Even If Your Loan Is New
A typical refinance can save at least $150 a month.

Where to Stash Your Savings When Cash Management Account Rates Take a Dive
Taking a look at CDs and online accounts.

How to Stock Up Wisely, Emergency or Not
Stocking up strategically.

What the ‘History’ Part of Your Credit Score Really Measures
It isn’t just how long you’ve had credit.

Your kids don’t want your stuff

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Estate appraiser Julie Hall advises downsizing clients not to take it personally when their adult kids don’t want their furniture and other possessions. But when Hall asked her 23-year-old daughter what she might want from the four-bedroom family home, the younger woman mentioned just three items.

“And I said, ‘Out of this whole house? Honey, we have nice things!’” says Hall, author of several books, including “How to Clean Out Your Parents’ Estate in 30 Days or Less.” “I started to sound like my clients.”

In my latest for the Associated Press, how to not take it personally when your kids don’t want your treasures.

Tuesday’s need-to-know money news

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Today’s top story: Does my travel insurance cover the Coronavirus? Also in the news: 3 signs that itemizing your taxes may be worth the headache, types of home inspections you should know, and why you shouldn’t pay for credit repair piggy back scams.

Does My Travel Insurance Cover the Coronavirus?
What to know about your upcoming travels.

3 Signs That Itemizing Your Taxes May Be Worth the Headache
How to know when it’s worth the effort.

Types of Home Inspections Buyers Should Know
When you should call in more than one inspector.

Don’t Pay for Credit Repair ‘Piggyback’ Scams
There are better ways to boost your credit.

Monday’s need-to-know money news

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Today’s top story: Why credit card loyalty is no virtue. Also in the news: the SmartMoney podcast tackles saving for a down payment, how to decide between buying, fixing, or building, and how to talk to a real human at the IRS without waiting on hold forever.

Why Credit Card Loyalty Is No Virtue
At least 1 in 5 consumers are carrying the wrong card.

SmartMoney Podcast: ‘How to Save for a Down Payment’
Look for the best interest rates.

Buy, Build or Fix: What’s Best for First-Time Home Buyers?
Tough decisions.

How to Talk to a Real Human at the IRS Without Waiting on Hold Forever
The best times to call.

Q&A: How IRS Free File works

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Dear Liz: I wanted to alert you to the fact that online tax preparation companies are up to their old tricks again this year despite being called out last year for deceptively hiding their free tax filing from eligible filers. My son, who qualifies for free filing, was redirected to the paid “deluxe” version when it turned out he qualifies for a “Savers Tax Credit.” He makes modest tax-deferred contributions through an employer that matched contributions. (He’s a low-income student who works in retail.) He logged out of that website and instead successfully used a competitor provider for free.

Answer: The way to access the IRS’ Free File program is through the IRS website, which directs people to the private tax preparation companies that have agreed to offer this service. Unfortunately, many of those same companies spend a lot of money trying to obscure that fact that most Americans can file for free.

Independent news organization ProPublica reported last year that tax preparation companies were hiding their free file options from online search engines and steering people instead into paid tax preparation. A government report in February confirmed that more than 14 million taxpayers paid for tax preparation last year that they could have received free.

The companies have since been banned from hiding the free option and are supposed to include a link that returns people to the IRS Free File site if they don’t qualify for the company’s free offer. But ProPublica found that they continue to steer people away from free filing in various ways, including advertising that misuses the word “free.”

Also, many people like your son discover only late in the tax preparation process — often after they’ve added most of their information — that they don’t qualify for that company’s free option, although they would qualify elsewhere.

Here’s what people need to know about free filing:

People with adjusted gross incomes under $69,000 a year can qualify for free filing, but they should start their search at the IRS Free File webpage.

People in the military and their families can use MilTax, provided by the Department of Defense.

They can also get advice from a tax professional at (800) 342-9647.

In addition, people may qualify for the IRS’ Volunteer Income Tax Assistance if they make less than $56,000, live with a disability or speak limited English. Use the Volunteer Income Tax Assistance locator tool or call (800) 906-9887.

People who don’t qualify for the above services can still use free fillable forms. In addition, some tax preparation companies may have free options for people filing basic forms. The types of income and credits that allow someone to file for free should be prominently displayed on the company’s free file page.

Q&A: Worried about stocks? Why you shouldn’t try to time the market

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Dear Liz: I’m a federal employee with a Thrift Savings Plan account. I’m 35 and have put about $125,000 into my TSP. However, I never changed it from the low-risk G fund so it’s not gaining as much interest as it should. Should I wait for the market to tank before moving it around or is it OK to move it now due to my age and amount of time I have before retirement? I’m worried I’ll move it and I’ll lose the value in a downturn, so maybe I should wait for a downturn to act.

Answer: You sent this question a few weeks ago, before the recent correction. Did you use the downturn as an excuse to hop into the market? Or did you stay on the sidelines, worried it might drop further?

Many people in your situation get cold feet. You’re better off in the long run just diving in and not trying to time the market.

Waiting for a downturn sounds good in theory, but in reality there’s no sure way to call the bottom of any stock market decline. And when the stock market recovers, it tends to do so in a hurry. If you delay too long, you risk missing much of the upside.

It won’t feel good if the market plunges a day, a week or a year after you invest your money, but remember that you’re investing for the long term. The day-to-day or even year-to-year gyrations of the stock market don’t matter. What matters is the trend over the next 30 years — and long term, stocks outperform every other asset class.