Dear Liz: I waited until age 70 to start collecting Social Security. My wife turns 65 this year so her full retirement age is 67. Can she start collecting Social Security benefits now based on my benefit or should we wait until her full retirement age? Answer: If she applies for Social Security now, she […]
Recent Blog Posts
Q&A: Inherited IRA could increase tax bill and Medicare premiums
Dear Liz: If someone inherits my retirement account, is there any way they can avoid having their Medicare premiums increased for one year? Answer: A large-enough retirement account could affect their Medicare premiums for up to 10 years, not just one. Normally inheritances aren’t taxable, but retirement accounts are the exception. Withdrawals from inherited retirement […]
Q&A: Simplify your finances with fewer credit cards
Dear Liz: I have too many credit cards that I opened to get frequent flier points. I understand that closing a credit card lowers your credit scores. How long does the ding last? How long should I wait before closing another card? Do you have any other advice on this subject? You probably have discussed […]
Q&A: Don’t need your RMD? Consider a QCD
Dear Liz: When you’re writing about required minimum distributions from retirement accounts, please make sure people know about qualified charitable distributions. Those of us lucky enough not to need the money can donate it directly from an IRA to the nonprofits of our choice. That way, we don’t even have it in our income column, […]
Q&A: Timing a Social Security application
Dear Liz: I know you work to maximize people’s money. I had a thought about the quality of life with Social Security. I took it at 65, which was then full retirement age. I was fully employed and did not need it to live. However, the extra money allowed us the opportunity to travel to […]
Q&A: Sharing an inherited house with your siblings? It can get complicated
Dear Liz: My husband’s parents, who are 88 and 93, respectively, have decided to leave their house, worth $800,000, equally, to their three children, who are all in their sixties. The children get along well and all decisions will be made as a group. None of the adult children can afford to buy out the […]