Dear Liz: You often emphasize the importance of using a financial planner or advisor who is a fiduciary. But how does one know whether a given planner or advisor is a fiduciary? Is it just the planner or advisor claiming to be one? Are there any licensing laws or professional organizations that grant such a designation? […]
Recent Blog Posts
Q&A: How do I avoid a Medicare surcharge?
Dear Liz: I will be applying for Medicare next year. Last year I received an inheritance, and also sold a second home which increased our taxable income for the year. I once read that there is a form that needs to be completed to let Medicare know that this is only a one-time occurrence. However, my […]
Q&A: Why tell the IRS if you sell gold coins?
Dear Liz: Regarding the inherited gold coins question, why would anybody tell the IRS they inherited coins and subject themselves to a 28% capital gains tax? That seems very illogical. Answer: To clarify, the original reader was asking about selling gold coins which had risen dramatically in value since she inherited them. Coins are considered collectibles so […]
Q&A: Is a spouse responsible for a cosigned loan?
Dear Liz: Before we were married, my spouse co-signed for two student loans for a relative. The loans have not been paid off. Occasionally the former student is late and my spouse is contacted. If I survive my spouse, who has end stage kidney disease, will I be responsible for the debts if the relative defaults? […]
Q&A: Should I get a home appraisal when my spouse dies?
Dear Liz: When one spouse dies, the couple’s primary residence gets a step-up value to the current market value (in California). So how is that value established for future reference? Is it necessary to get a formal appraisal or are current sales comparisons sufficient? Also, is that step-up value the basis for any future home sale […]
Q&A: How will higher savings rates affect my taxes?
Dear Liz: I have a savings account of $200,000 earning barely any interest. I would like to move it into certificates of deposit, but I’m afraid I’ll end up owing on my taxes. Would the interest I earn offset any tax liability? Answer: Of course. The taxes you pay on would only be a portion of the […]