Dear Liz: You recently advised a couple who have excellent credit, no outstanding loans and a low credit utilization rate that they could close their credit card with a company that keeps reducing their credit limit when they don’t spend enough on their card. The writer has to contact the credit card company every time to […]
Recent Blog Posts
Q&A: RMDs gave me permission to retire
Dear Liz: When Roth conversions came along, they were touted as a way to avoid taxable required minimum distributions in retirement. I had built up a solid “traditional” account, and saw no reason to add to my tax bill by converting. I ignored the noise, although I did open and contribute to a Roth account in […]
Q&A: Are automatic renewals legal?
Dear Liz: I paid for several magazine subscriptions online. At the end of the transaction, I received notice that I had also been signed up for automatic renewal. While I will be notified prior to the end of the current subscription period and given the opportunity to cancel the subscription, this seems like an underhanded way […]
Q&A: Is a lump-sum Social Security payment taxable?
Dear Liz: Because of the Social Security Fairness Act, my wife got a huge lump sum check (catchup, I suppose) and will now get monthly Social Security benefits. This is good news and bad news, especially if we get kicked into a higher tax bracket and moreover if we have to pay taxes on that lump […]
Q&A: Electronic tax payments don’t require paper forms
Dear Liz: You recently answered a reader whose check to the U.S. Treasury had been stolen and forged to another recipient. You suggested sending electronic checks instead. However, our accountant gives us forms that I thought needed to be included with a paper check to ensure the correct accounting of our taxes. Can we just send […]
Q&A: I’m 59 with no retirement savings. What now?
Dear Liz: I’m 59. In 8 years, I will qualify for an average Social Security income. I have no retirement saved and am not a homeowner but I have been blessed with a modest inheritance. What financial advice would you give in this situation? Answer: The most powerful action you can take for your future retirement is […]