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 […]
Recent Blog Posts
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 […]
Q&A: Should I get Medicare supplemental insurance?
Dear Liz: I’m about to retire and have decided on original Medicare with a Medigap policy rather than Medicare Advantage. Can a Medigap company cancel your medical plan, and can they deny a medical procedure? Are there extra charges for preexisting conditions or other coverage issues? Answer: Medigap is another name for Medicare supplement insurance. This coverage […]
Q&A: Can I make up for my spouse starting Social Security too early?
Dear Liz: My husband is 13 years older than I. Unfortunately, when he went in to sign up for Medicare several years ago, the clerk talked him into taking his Social Security as well since he had reached full retirement age. Now I am wondering when to take mine. My benefit at full retirement age would […]
Q&A: Is it better to have a fee-only financial advisor?
Dear Liz: As a certified financial planner for the past 31 years who has never run afoul of any regulatory body, I cringe every time I hear you recommend people seek out only fee-only financial planners! While we certainly do fee-based work where appropriate, sometimes it is simply better for the consumer if their advisor receives […]
Q&A: Does my spouse get half of everything in a divorce?
Dear Liz: My wife recently asked for a divorce, which was difficult to hear. That said, I want to move forward with my life and part of this is being on sound economic footing. I have been the primary earner in our marriage for most of our 12 years together, even though my wife was capable […]