Q&A: Ins and outs of HELOCs

Dear Liz: We have a home equity line of credit through our credit union. I have been paying it down very aggressively and it will be paid off in two months. That is our only debt. I was considering leaving a small ($100) balance. It would cost $7.50 a year to have the loan available but […]

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This week’s money news

This week’s top story: Smart Money podcast on chatGPT vs. the Nerds, and rental properties. In other news: What new for Medicare is in 2023, economy is improving, but recession risk, inflation still hover, and small-business tax changes and tips to know in 2023. Smart Money Podcast: ChatGPT vs. the Nerds, and Rental Properties This […]

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‘Bridge’ your way to Social Security

Delaying the start of Social Security benefits is a powerful way for retirees to cope with inflation, survive bad investment markets and reduce the risk they’ll run short of money. The advantages of waiting are so great that financial planners often recommend their clients tap other savings, such as retirement funds, to help them delay […]

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Q&A: Taxes on a deceased spouse’s assets

Dear Liz: My dear friend’s husband just passed away and she is immediately selling off all his antiques through an auctioneer. Sales should net well over $100,000 this calendar year. Is there any way to offset the tax hit she will take on this? This will be on top of selling the house in the same […]

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Q&A: What’s the best way to save for education? A 529 plan or I bonds?

Dear Liz: Please write a comparison of 529 college savings plans versus using I bonds for education. I had given baby gifts of 529 funds to grandkids before they had their first birthdays. But due to market volatility, this year I matched those with I bond funding for the kids. The oldest is now 6, so […]

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This week’s money news

This week’s top story: Smart Money podcast on no-spend month 2.0, and recovering from credit damage. In other news: February mortgage rates on the downslope by end of month, having a conversation about fraud with older adults, and how to save your job from laying off. Smart Money Podcast: No-Spend Month 2.0, and Recovering From […]

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How to safely use payment apps

As a frequent PayPal user, I wasn’t surprised to see a payment request on the app pop up. But when I read it, I knew something was wrong. In the message, a stranger asked me to send them $699 in order to get a “refund.” While I instantly recognized the request as a scam, I […]

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Q&A: Are you trying for a perfect credit score? Maybe you don’t need to

Dear Liz: My credit score fluctuates between 799 and 815. It used to be 850. I always pay my bills in full and on time, and keep the credit utilization low. The only comment I can find about why my credit score isn’t higher is that I lack a loan. I don’t owe any money and […]

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Q&A: Survivor Social Security benefit

Dear Liz: When you discuss a survivor receiving 50% of their spouse’s Social Security benefit, are you basing the 50% on gross or net income? Answer: The survivor benefit is up to 100% of what the deceased spouse or ex-spouse was receiving from Social Security, before taxes. If the spouse or ex starts Social Security early, that […]

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Q&A: Surviving spouse’s home gains

Dear Liz: If a surviving spouse is selling the couple’s longtime home, are there any special provisions on the long-term capital gains? Answer: When one spouse dies, their half of the home gets a new value for tax purposes. The value is “stepped up” to the current market value, so that the appreciation that happened on that half of […]

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