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Liz Weston

Q&A: Social Security spousal benefits

July 30, 2018 By Liz Weston

Dear Liz: In a recent article, you mentioned spousal benefits. If someone started her own Social Security benefit at 62, is there no way of drawing a spousal benefit at a later date?

Answer: When you apply for Social Security now, you’re “deemed” (considered by the Social Security Administration) to be applying for both your own benefit and any available spousal benefit. If a spousal benefit is larger, you’ll get that, and you can’t switch back to your own benefit later.

You may be able to switch from your own benefit to a spousal benefit, however. Let’s say that when you applied at 62, your spouse had not yet applied for his or her own benefit. When he or she does apply, you’ll be automatically switched to a spousal benefit if it’s larger than your own.

Before Congress changed the rules, it was possible for one spouse to “file and suspend” — file and immediately suspend an application for retirement benefits, which was enough to allow a spouse to collect a spousal benefit. Today, a spousal benefit is typically only available if the primary earner has started his or her own retirement benefits.

Filed Under: Q&A, Social Security Tagged With: q&a, Social Security, spousal benefits

Q&A: The fat in your genes/jeans

July 30, 2018 By Liz Weston

Dear Liz: In one of your recent answers, you said “avoiding obesity” was part of choosing healthier lifestyles. The problem with that statement is that a large percentage of people cannot avoid obesity, because obesity is “wired” into their genes or otherwise into their personal biological makeup. People range all over the spectrum. I personally knew a guy who would normally eat four Double Double burgers plus fries when he ate at In-N-Out Burger, and he didn’t exercise, but he was trim as a telephone pole. But guys in my family have large lumps of extra fat on their bodies, even if we don’t eat that much.

Your casual mention unfortunately reinforced the false notion that people who have obese bodies always are that way because they eat poorly or too much, while people with trim bodies are always that way because they eat wisely and exercise. That false notion just makes life harder for those of us who have obesity regardless of how we eat. I’m sure you didn’t intend to make my life more difficult at all, but that’s the effect that such casual allusions have. It would be best to stick with unassailable phrases such as “eating wisely.”

Answer: Some people definitely are blessed with faster metabolisms, and research indicates that others have a genetic predisposition to packing on weight. But obesity is largely preventable, according to the World Health Organization and other medical authorities.

The WHO recommends that individuals limit the fats and sugars they eat, increase consumption of fruit and vegetables, as well as legumes, whole grains and nuts; and engage in regular physical activity (60 minutes a day for children and 150 minutes spread through the week for adults). Programs such as Weight Watchers or 12-step groups such as Overeaters Anonymous can help provide support. You may never be skinny, but you can definitely take steps to improve your health.

Filed Under: Health Insurance, Q&A Tagged With: health insurance, obesity, q&a

Friday’s need-to-know money news

July 27, 2018 By Liz Weston

Today’s top story: Managing debt in retirement takes some planning. Also in the news: Why your credit score means both everything and nothing, 5 ways to save on energy during the dog days of summer, and what the Dept. of Ed’s proposed new rules on debt forgiveness requirements means.

Managing Debt in Retirement Takes Some Planning
What you can do to still retire comfortably.

Your Credit Score Means Everything — and Nothing
Don’t be afraid to look.

5 Ways to Save Energy During the Dog Days of Summer
Baby, it’s hot outside.

What the Department of Ed’s Proposed New Rules on Debt Forgiveness Requirements Mean for You
Rules are tightening up.

Filed Under: Liz's Blog Tagged With: Credit Score, debt, energy costs, student loan debt forgiveness, summer, tips. retirement

Thursday’s need-to-know money news

July 26, 2018 By Liz Weston

Today’s top story: 7 tactics to help car-buying newbies bargain like a boss. Also in the news: 5 ways to save energy during the dog days of summer, what you need to know about buying a house in 2018, and how a freelancer turned dog sitting into a successful side gig.

7 Tactics to Help Car-Buying Newbies Bargain Like a Boss
Don’t be intimidated.

5 Ways to Save Energy During the Dog Days of Summer
Staying cool.

Buying a House in 2018: What You Need to Know
Things have changed a bit.

How a Freelancer Turned Dog Sitting Into a Successful Side Gig
Getting your side hustle on.

Filed Under: Liz's Blog Tagged With: automobiles, buying a house, car buying, energy costs, real estate, side gigs, summer, tips

Tuesday’s need-to-know money news

July 24, 2018 By Liz Weston

Today’s top story: How replacement window costs add up. Also in the news: Hiring a vacation photographer, how to fight about money and stay madly in love, and 5 things to do first if you win tonight’s Mega Millions jackpot.

How Replacement Window Costs Add Up
Things to take into consideration.

So Long, Selfie Stick. For Better Vacation Photos, Go With a Pro
Hiring a vacation photographer.

How to Fight About Money and Stay Madly in Love
Don’t let money come between you.

5 things to do first if you hit the $512 million Mega Millions jackpot
Besides jumping up and down on the couch.

Filed Under: Liz's Blog Tagged With: couples and money, lottery, Mega Millions, replacement windows, tips, vacation photographers

Managing Debt in Retirement Takes Some Planning

July 24, 2018 By Liz Weston

Owing money in retirement isn’t ideal — but most people do.

Seventy percent of U.S. households headed by people ages 65 to 74 had at least some debt in 2016, according to the Federal Reserve’s latest Survey of Consumer Finances. So did half of those 75 and older.

Paying debt usually gets more difficult on a fixed income. Mortgage debt, especially, can be a huge burden in retirement. Retirees may have to withdraw larger amounts from their retirement funds to cover payments on debt, which can trigger higher tax bills and increase the chances they’ll run short of money.

People have the most options to deal with debt if they create a plan before they retire, financial planners say. Refinancing a mortgage, for example, is usually less of a hassle while people are still employed. It’s also typically easier to generate the extra income that may be needed to pay off debt.

“It is much easier to keep working for another year or two than to try and come back into the workforce when they are older and the employer needs have changed,” says Linda Farinola, a certified financial planner in Princeton, N.J.

In my latest for the Associated Press, three loans to consider before you stop working.

Filed Under: Liz's Blog Tagged With: debt, Loans, Retirement

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