Dear Liz: I qualified for Social Security and receive a benefit. My wife did not work long enough to get a benefit, yet she receives a small amount each month. What is this from? What happens to it at her death? Answer: Her benefit is probably a spousal benefit, which is based on your work record. Spousal benefits can […]
Recent Blog Posts
Q&A: When a HELOC rate is too good to be true
Dear Liz: My current home mortgage rate is 5%. I owe about $340,000 on the house and have about $300,000 in equity. My credit union is offering a home equity line of credit with a rate of 3%. Would it be a good idea to take out a HELOC at that rate and use those funds […]
Q&A: Inherited IRAs and taxes
Dear Liz: After reading your recent response on the taxability of inherited IRAs, I have a question. I am 53, divorced with no children, and have an IRA worth more than $1 million. I’ve always listed the beneficiary of the account as my estate, for no reason other than administrative ease (if I ever change my will, the […]
Create a care plan for older parents (or yourself)
At some point, most older people will need help getting through the day. Someone turning 65 today has a 70% chance of eventually requiring assistance with basic living activities, such as bathing, dressing and using the toilet, according to the U.S. Department of Health and Human Services. That’s the grim reality. Even grimmer is that […]
This week’s money news
This week’s top story: Smart Money podcast on overcoming financial fears, and appliance repair tips. In other news: What new lending regulations mean for small-business owners, can office-to-housing conversions dent the housing crisis, and 5 steps to prepare for student loan repayment. Smart Money Podcast: Overcoming Financial Fears, and Appliance Repair Tips Hosts Sean Pyles and […]
Q&A: Capital gains taxes on a house sale
Dear Liz: We purchased our home for $220,000 in 1986 and are selling it for $1 million. We own it free and clear. The proceeds from the sale will be going toward the purchase of another property, to be owner-occupied, for $1.4 million. We will be coming in with additional cash to cover the difference. Our […]