Is a 3% withdrawal rate too conservative?

Question: In a recent column you repeat advice I have often read that withdrawing about 3% of my investment capital will reduce the chances of my running out of money in retirement. But that doesn’t make sense to me. I have been retired for over 19 years and I have sufficient data now to extrapolate […]

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Your Social Security questions answered

My column about getting your parents a bigger Social Security check, “More Social Security for mom,”  triggered a boatload of questions from readers–and confirmed what experts had told me, which is that a lot of people seem to be missing out on benefits for which they qualify. Here are some of the questions that came […]

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Our credit cards worked in Europe. Mostly.

We just returned from 10 days in Italy, with a plane change in Zurich. After writing about the troubles some U.S. travelers faced using their credit cards overseas, I’m happy to report that we were able to use ours in most places with no problem at all. Of course, we visited tourist-centric locales (Venice and […]

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What’s a “safe” withdrawal rate?

Dear Liz: After working all out for 28 years in a small business, I have put away $2.6 million in stocks, bonds and some cash. (I am a reasonably smart investor.) I’m 58 and want to be done at 60. I’m not tired of my business, just tired of working. How much do you think […]

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Protecting a parent from financial opportunists

Dear Liz: I liked your answer to the elderly couple who were being badgered for money by their daughter and her husband. I agree that involving the other daughter can help. I managed to combat the tendency of family and caregivers to pester my 90-something mom for money by convincing her to give me electronic […]

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Don’t start Social Security too soon

Dear Liz: I am 66-1/2 and eligible to collect my full Social Security benefit now. I am in good health and assume I will live into my 80s. I am still working and don’t need the extra money. Is it better to put off taking my benefit so that it will grow 8% with Uncle […]

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Term or whole life? What you need to know

Dear Liz: My mother and her insurance agent swear by whole-life insurance policies. I am 45 and have heard from everyone else to only have term life, which is what my husband and I both have. We have a 15-year-old daughter. Can you please put in layman’s terms what a whole-life policy is and what […]

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Who pays for tax pro’s mistake?

Dear Liz: Last year I bought an electric vehicle, motivated in part by the $7,500 federal tax credit. I consulted with my tax preparer, a CPA, to ensure I would generate enough income to fully use the one-time, use-it-or-lose-it credit. In December 2011, I informed her of the exact type of that year’s income (earned […]

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Insurance scores aren’t the same as credit scores

Dear Liz: I have very high credit scores, but recently got a notice from my homeowners insurance company saying that my rates were rising because there had been a number of inquiries on my credit report. The inquiries were as a result of my looking for the best deal on a mortgage refinance, and we […]

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Which cars retain their value the best?

If you buy cars and then drive them until the wheels practically fall off–as I usually do–then you don’t need to worry much about “retained value.” You can take pride in squeezing all the value out of your vehicle before it’s hauled off to the dump. If you plan to trade in a car at […]

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