Dear Liz: I understand that anybody with a 401(k) can contribute up to $18,000. Does the amount you can contribute depend on your salary? Say you make $45,000. Therefore I would assume you could put in the full $18,000, or 40% of your salary. Am I wrong? Answer: The maximum the IRS allows someone under […]
Recent Blog Posts
Q&A: Capital gains taxes
Dear Liz: My wife owns a house that was separate property before our marriage. She has since fallen ill and needs round-the-clock care. I am selling the house to support this and will net about $250,000 at close. Will we have to pay capital gains taxes, or can I claim a one-time exemption, based upon […]
Q&A: Postponing Social Security
Dear Liz: My question is on when to take Social Security. My financial advisor recommends that I file for my benefit at age 66 but suspend the application so my benefit can continue to grow until it maxes out at age 70. At 66, I would receive $2,614 per month. At age 70 I would […]
Friday’s need-to-know money news
Today’s top story: What happens to your credit after you die? Also in the news: Secrets to buying long-term-care insurance, how to calculate your personal savings rate, and five steps to planning a secure retirement. What Happens to Your Credit When You Die? Who, if anyone, is responsible for paying it off? 4 Secrets to […]
Thursday’s need-to-know money news
Today’s top story: Common money mistakes you need to avoid. Also in the news: When should you get professional help for education expenses, what you need to do in order to retire in the next five years, and five of the craziest credit card perks. 11 Common Money Mistakes You Don’t Want to Make Watch […]
Why “Get scholarships!” is bad advice
We had a great Twitter chat today about preparing financially for college, hosted by Experian. (You’ll find the tweets using #creditchat.) I was distressed, though, that many believe people should look for scholarships as a way to reduce college costs. That’s not how it usually works. If you have financial need, colleges typically deduct the […]