Liz's Blog Archives - Page 5 of 285

Does a 401(k) employer match tempt you to cash out?

Many companies try to help their workers to save for retirement. Employers often offer 401(k)s, company matches and automatic enrollment to encourage saving.

Much of that effort goes to waste, though, when employees leave. A study published last year in Marketing Science, a peer-reviewed research journal, found more than 40% of departing workers cashed out at least part of their 401(k)s, and most of those drained every dime.

What’s more, employers may bear at least some of the blame, according to researchers Yanwen Wang of the University of British Columbia, Muxin Zhai of Texas State University and John Lynch Jr. of the University of Colorado.

The study, titled “Cashing Out Retirement Savings at Job Separation,” suggests generous company matches can make cashing out more tempting. In my latest for ABC News, learn how a 401(k) employer match tempt you to cash out.

This week’s money news

This week’s top story: Watch for these 3 Medigap shopping surprises to avoid overpaying. In other news: What home buyers should know as mortgage rates top 8%, cut EV costs with electric company incentives, and what to buy on Black Friday and Cyber Monday 2023.

Watch for These 3 Medigap Shopping Surprises to Avoid Overpaying
Medicare beneficiaries should watch for shopping surprises when choosing a Medigap plan to avoid paying too much for coverage.

As Mortgage Rates Top 8%, What Home Buyers Should Know
Interest rates on 30-year fixed-rate home loans have reached a milestone not seen for over two decades. What does that mean for this housing market?

Cut EV Costs With Electric Company Incentives
Electricity providers offer a range of EV rebates, from vehicle purchase to charging station installation.

What to Buy (and Skip) on Black Friday and Cyber Monday 2023
Retailers like Amazon, Target and Walmart pushed October sales as an early start to the holiday shopping season again this year.

Ways to recover from a financial shock and be prepared next time

Financial shocks come in many different forms: An unexpected medical bill, house repair or job loss are among the typical ones. The reasons for financial shocks may be common, but recovering from them can be unexpectedly challenging.

“These things happen once or twice over a financial lifetime,” says Spencer Betts, a certified financial planner and financial consultant with Bickling Financial Services in Lexington, Massachusetts. “They can be pretty big, even for a relatively well-off person.”

In Kimberly Palmer’s latest for the Seattle Times, learn ways to recover from a financial shock and be prepared next time.

This week’s money news

This week’s top story: Getting a second opinion can help ward off misdiagnosis. In other news: What to know about pet insurance, 6 tips for the FAFSA delay, and questions you aren’t asking, but should during open enrollment.

Getting a Second Opinion Can Help Ward Off Misdiagnosis
Each year, diagnostic error leads to about 371,000 U.S. deaths. A second opinion is one potential cure.

Adopting a Rescue Dog? Here’s What to Know About Pet Insurance
Pet insurance isn’t right for everyone. For example, it can be pricey if you’re adopting a senior dog.

Applying to College Early Decision? 6 Tips for the FAFSA Delay
With the timing and size of financial aid packages in question for the 2024-25 academic year, consider early action or regular decision instead.

Questions You Aren’t Asking (but Should) During Open Enrollment
From drug coverage to deductibles, here are the things to consider when you’re choosing health insurance for 2024.

Someday your boss could help you save for emergencies

When I wrote about employer-provided emergency savings accounts four years ago, the idea was still pretty novel. Some companies were experimenting with ways to help their workers save for short-term needs, but the concept wasn’t even on the radar for many employers.

What a difference the pandemic made. Millions were thrown out of work with little warning, and few had the financial reserves to survive even a few months of unemployment. Big employers, and lawmakers, took notice, says Claire Chamberlain, global head of social impact for investment manager BlackRock. The result: Hundreds of thousands of workers now have options to build emergency savings through their employers, and Congress passed laws to encourage more companies to add short-term savings options.

In my latest for ABC News, learn how your boss could help you save for emergencies someday.

This week’s money news

This week’s top story: How to protect yourself from student loan scams as bills resume. In other news: Increased commuting costs, how Disney turned Halloween into a money-making machine, and 3 steps to booking holiday travel.

How to Protect Yourself From Student Loan Scams as Bills Resume
If you get a random text or call about your student loans, it’s likely a scam.

Commuter Snapshot: Most Workers Hit the Roads as Costs Increase
Lower relative wages make increased commuting costs tough to handle.

How Disney Turned Halloween Into a Money-Making Machine
With after-hours parties and seasonal treats, Disney has thoroughly capitalized on the spooky season.

Ask a Travel Nerd: 3 Steps to Booking Holiday Travel
Book in October and consider traveling on off days to avoid high prices and overwhelming crowds.

How to plan for a potential inheritance

The amount of wealth millennials and Gen Xers stand to inherit from their parents and grandparents almost defies comprehension: According to Cerulli Associates, a Boston-based research and consulting firm, $84.4 trillion in wealth will be transferred between 2021 and 2045, primarily from baby boomer households to younger generations.

Inheritances aren’t just for the rich: Less than half of the total volume of transfers is expected to come from high-net-worth households.

“It’s a really unique point in history because of the amount of wealth,” says Chayce Horton, senior analyst on the wealth management team at Cerulli. “It’s something we haven’t seen before.”

As a result of that magnitude, inheritance recipients might not know what to do with one, and whether to count on the windfall before it arrives.

In Kimberly Palmer’s latest for the Seattle Times, learn how to plan for a potential inheritance.

This week’s money news

This week’s top story: Biden cancels another $9B in student debt for 125,000 borrowers. In other news: Tips for managing holiday budgets and stress, 4 ways married couples can use tax breaks to build wealth, and how climate change could affect when and where people travel.

Biden Cancels Another $9B in Student Debt for 125,000 Borrowers
So far, the Biden administration has canceled $127 billion in student loan debt.

Finance Nerds Share Tips for Managing Holiday Budgets and Stress
The holidays can be a financially stressful time. Saying yes to budgeting and no to overextending yourself can help.

4 Ways Married Couples Can Use Tax Breaks to Build Wealth
Married couples can use multiple strategies to build wealth when they take advantage of various tax credits and deductions.

How Climate Change Could Affect When and Where People Travel
After a summer of record-breaking temperatures, tourists may opt to travel in cooler months or to cooler places.

5 surprising facts about assisted living

If you or a loved one can no longer live safely at home, assisted living may be the answer. Residents typically live in their own rooms or apartments and get housekeeping services, meals and help with personal care.

But facilities can vary enormously, and people’s expectations about assisted living often clash with reality, elder care experts say. Here are some important things to know. In my latest for ABC News, learn 5 surprising facts about assisted living.

This week’s money news

This week’s top story: October mortgage rates forecast. In other news: 6 pitfalls to avoid when shopping for Medicare Advantage, 5 tips to get primed and ready for Amazon’s October Prime Day, and entrepreneurs feeling less optimistic as rates rise.

October Mortgage Rates Forecast: Highest in 2 Decades
In September, mortgage rates reached their highest levels since 2000, and they could inch upward in October.

Shopping for Medicare Advantage: 6 Pitfalls to Avoid
From picking a plan for the perks to not checking next year’s network, here are some traps it’s easy to fall into while shopping for Medicare Advantage.

5 Tips to Get Primed and Ready for Amazon’s October Prime Day
Amazon’s Prime Big Deal Days event is next week: Oct. 10-11.

NerdWallet Small-Business Financing Index: Rates Up, Optimism Down
NerdWallet’s annual index considers data about delinquency rates, new loan volumes and business-owner sentiment.

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