Ask Liz Weston

Get smart with your money

Liz Weston

Wednesday’s need-to-know money news

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Today’s top story: What 3 Big Brother winners did with their $500K payday. Also in the news: Financial wisdom for young adults, 3 ways to avoid a bad student loan, and when to hire a mortgage broker.

What 3 ‘Big Brother’ Winners Did After Their $500K Payday
What happened when the cameras were turned off.

It’s Not All About Money: Financial Wisdom for Young Adults
How to think about money as you begin adulthood.

3 Ways to Avoid a Bad Student Loan
Take a close look at the fine print.

When to Hire a Mortgage Broker
When to bring in the middleman.

Tuesday’s need-to-know money news

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Today’s top story: 3 questions to help grow your retirement savings. Also in the news: 7 annoying international travel fees you can shrink or skip, why waiting to file bankruptcy can hurt you, and 7 ways to retire without Social Security.

3 Questions to Help Grow Your Retirement Savings
Evaluating your current position.

7 Annoying International Travel Fees You Can Shrink or Skip
Leaving your more money for souvenirs.

Why Waiting to File Bankruptcy Can Hurt You
Making a bad situation worse.

7 Ways to Retire Without Social Security
Creating your own retirement income.

How to be a happy timeshare owner

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Many people are desperate to shed their timeshares. That provides bargains for timeshare enthusiasts like Angie and Mike McCaffery of Los Angeles.

The retired couple has paid as little as 50 cents for “used” timeshares. They’ve parlayed their timeshare weeks at four mainland U.S. resorts into affordable stays in England, Spain, Costa Rica, Hawaii, Mexico and the Caribbean.

“You hear all the nightmare stories, but if you know how to work it and you can plan ahead, it’s the best thing ever,” says Angie McCaffery, 71.

In my latest for the Associated Press, what people who are happy with their timeshares have in common.

Monday’s need-to-know money news

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Today’s top story: Small financial mistakes that could cost you big. Also in the news: Are certificates of deposit worth it right now, saving on vacations through Costco, and how changing your wireless plan could affect your credit report.

Small Financial Mistakes That Could Cost You Big
What looks like a small mistake could become expensive in the long run.

Are Certificates of Deposit Worth It Right Now?
Rates are climbing.

Costco Travel Vacations Pack Luxury and Value
Savings beyond the warehouse.

Sprint’s $15 unlimited data plan required a ‘hard pull’ credit report, and it’s not the only one
Changing your plan could impact your credit report.

Q&A: High earners need to watch out for Medicare surcharge

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Dear Liz: When I retired at age 70, I anticipated receiving the maximum available Social Security benefit payment because I had paid in the maximum tax for my entire career. I did not anticipate the heavy hit my spouse and I would take in monthly income-adjusted Medicare “premiums.” (I say “tax” is a more appropriate description.) We now pay over $500 per month each, or more than $12,000 per year! I know I am blessed to have the income I have in retirement, but that is because we were thrifty and worked hard and saved.

Answer: Many high-income retirees are unaware of “IRMAA,” or Medicare’s income-related monthly adjustment amounts, so they can come as a bit of a shock. These adjustments begin when modified adjusted gross income exceeds $85,000 for singles or $170,000 for couples. At that level, Medicare recipients pay an additional $53.50 for Part B, which covers doctor’s visits, and $13.30 extra for Part D prescription drug coverage, on top of their regular premiums. (Regular premiums for Part B are $134 a month, while premiums for Part D vary by the plan chosen.) The adjustments increase as income rises until they max out at $294.60 for Part B and $74.80 for Part D when modified adjusted gross income exceeds $160,000 for singles or $320,000 for couples.

Medicare Part A, which covers hospital visits, remains free for all Medicare beneficiaries.

That $12,000 a year may feel like a lot, but healthcare is expensive in the U.S. Annual premiums for employer-sponsored family health coverage reached $18,764 last year.

Q&A: Wife should get her name on deed

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Dear Liz: My daughter, who is a stay-at-home mother of two, recently bought a home with her husband. They have been married seven years. I recently discovered that her name isn’t on the deed to the home. I don’t know why, but it doesn’t sound good to me. What are her potential issues?

Answer: The issues depend on where she lives. Community property states include Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin.

If your daughter lives in one of those, assets acquired during marriage, including a home, are generally considered community property owned equally by both spouses. Her husband, ideally, should place her on title via a deed to reflect true ownership or place it in a trust to provide for his wife. However, if her husband should die without bequeathing her the property, the home could go to probate proceeding, and the wife would have to provide proof that it was community property to receive all of it, says estate planning attorney Jennifer Sawday of Long Beach.

In other states, different rules apply. Typically assets held in one person’s name are that person’s property. If the husband has a will, he could leave the house to your daughter — or not. Should he die without a will, she could wind up sharing ownership of the house with others, such as children from a previous marriage.