The amount of wealth millennials and Gen Xers stand to inherit from their parents and grandparents almost defies comprehension: According to Cerulli Associates, a Boston-based research and consulting firm, $84.4 trillion in wealth will be transferred between 2021 and 2045, primarily from baby boomer households to younger generations. Inheritances aren’t just for the rich: Less […]
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This week’s money news
This week’s top story: Biden cancels another $9B in student debt for 125,000 borrowers. In other news: Tips for managing holiday budgets and stress, 4 ways married couples can use tax breaks to build wealth, and how climate change could affect when and where people travel. Biden Cancels Another $9B in Student Debt for 125,000 Borrowers […]
Q&A: Social Security inflation adjustments
Dear Liz: When the Social Security Administration makes its cost of living adjustments, do these increases get factored into the benefit amounts for people who are not yet collecting their Social Security? Answer: Social Security’s inflation adjustments are factored into your retirement benefits starting at age 62, whether or not you’re actually collecting checks. So there’s no reason to […]
Q&A: To shred or not to shred
Dear Liz: In a recent column, an attorney suggested that a veteran’s information can be shredded three years after death. However, surviving spouses of veterans can be eligible for benefits to cover the costs of assisted living and would need to provide that information. Answer: That’s an excellent point. Many people aren’t aware of the “aid and attendance” benefit that […]
Q&A: California is a community property state. How that affects your and your spouse’s need for a will
Dear Liz: Does a spouse automatically inherit everything if the other passes away without a will? Answer: Not necessarily. Anything that has a beneficiary designation, such as retirement accounts and life insurance, would typically pass to the person named as beneficiary even if that’s not the surviving spouse. Bank and investment accounts also may have “transfer on […]
Q&A: Retirement benefits and taxes
Dear Liz: We are just getting to the age where mandatory distributions from our retirement accounts have to start. We don’t need the additional cash as we have great pensions. If we convert to Roth IRAs, will the amount in the Roth be subject to minimum deductions going forward? Will our heir have to pay any taxes […]