Dear Liz: My two grandchildren are in middle school and are expected to attend college. I’d like to contribute to 529 plans for them, possibly making five years’ worth of contributions at once. Should I contribute to the plans their parents have established, or open separate 529s so I can maintain control? I’m 86 and live […]
Recent Blog Posts
Q&A: Can I switch from my Social Security to a spousal benefit?
Dear Liz: I will be 62 in January. My husband turns 70 in July. If I take my Social Security benefits at a reduced rate at 62, can I switch to half of his benefits once he turns 70 and applies? Let’s say my reduced benefit at 62 is $1,000 per month and my husband’s maximized […]
Q&A: When a new school district has a bad retirement plan
Dear Liz: I have taught for 22 years and recently accepted a position in a neighboring school district. I have a 403(b) retirement plan invested in a low-cost target date fund. The neighboring district’s vendor list does not include this option. Would it be more advantageous to leave my money in the current account or to […]
Q&A: Roth IRA conversions can benefit your heirs—but at a cost
Dear Liz: I have been reading the questions about converting an IRA to a Roth and want to know how it might apply to my situation. I have been getting my required minimum distributions for a while, and I have been paying the surcharges on Medicare because of my higher income. Would it still be worth […]
Q&A: Why marriage can reduce taxes on a home sale
Dear Liz: We are a heterosexual couple who are registered domestic partners in California. We have owned our primary residence for decades. Obviously, its value has increased and is well past the $500,000 home sales exemption limit for couples. When one of us passes away, how is the basis and the appreciation of the residence calculated […]
Q&A: Can I open a Roth IRA for my minor grandchildren?
Dear Liz: Where can I open a Roth IRA for my minor grandchildren? Answer: Fidelity, Charles Schwab and Vanguard are among the large brokerages that offer custodial IRAs with no account minimums or fees. Getting your grandkids started with saving for retirement is a great idea, but they’ll need to be earning their own money before you […]