Dear Liz: If I have a few credit cards, why would my credit be negatively affected if I paid off and closed some? Answer: Your credit scores won’t be negatively affected by paying off your card balances — quite the opposite. Paying off debt improves your credit utilization — the amount of your available credit you’re actively […]
Recent Blog Posts
Q&A: Social Security benefits for exes
Dear Liz: I divorced after three decades of marriage, and my ex remarried before age 60. If I understand Social Security’s rules correctly, that remarriage disqualified my ex from claiming a survivor’s benefit based on my work history. Here’s my question: If my ex’s current spouse dies before he does, does that then make him eligible […]
Q&A: Their 529 college savings plans have a problem: The students graduated. Now what?
Dear Liz: My adult children both have money left in 529 accounts that I control as well as uncashed savings bonds given by generous grandparents. We were able to get them through college without needing the funds, but neither has decided to continue with graduate education and the funds have been stranded because of the high tax rate on non-education […]
Investing for retirement — Why you might want to reconsider that 403(b)
Like many other educators, high school science teacher Robert Curtiss of Dearborn, Michigan, thought he was doing the right thing by investing in his school district’s 403(b) retirement plan. Then federal regulators charged the company handling Curtiss’ investments with fraud. In July 2022, the Securities and Exchange Commission said Equitable Financial Life Insurance Co. had […]
This week’s money news
This week’s top story: Smart Money podcast on using AI to budget and save and debit vs. credit card pros and cons. In other news: What the 2024 Social Security COLA could mean for your retirement, what parents of college students need to know about new FAFSA, and first-time home buyer affordability report. Smart Money Podcast: Using […]
Q&A: Here’s how a health savings account works. Spoiler: It can be a stealth retirement fund
Dear Liz: For the first time, I signed up for a high-deductible insurance plan along with a health savings account. However, I don’t quite understand a couple of key concepts. When our medical bills roll in, will we pay using our personal credit card or the HSA card provided by my employer? We have no trouble […]