Dear Liz: My wife and I, both in our early 90s, are fortunate to have good health insurance. However, we have significant expenses that are not covered. As you might expect, we are retired and receive income from Social Security, pensions, annuities and investments. Are we eligible to use flexible health accounts funded with pretax dollars? […]
Recent Blog Posts
Q&A: Should I cash out my pension to pay off my home?
Dear Liz: I was recently and unexpectedly laid off. Money will be tight on Social Security alone. If I take the lump sum of my pension, the amount would be almost enough to pay off my home. Should I do that? Answer: Pension payments typically continue for life and you can’t lose the money to […]
Q&A: How to finance a remodeling project
Dear Liz: I am doing a small remodeling job to my home that will cost $80,000. I have enough in my investments to withdraw the $80,000. Is it better, tax wise, to get a home equity loan to pay for it? Answer: Like so many tax questions, the answer depends on your circumstances. How your […]
Q&A: Revocable vs. irrevocable trusts
Dear Liz: What is the difference between a revocable trust and an irrevocable trust? Which one is better? I am a widow with two sons who will inherit my estate. My net worth is $1.4 million, including a mortgage-free house. Answer: The two types of trusts serve different functions, so neither is inherently better than the other. […]
Q&A: Your credit card was unfairly canceled? Here’s how to fight back
Dear Liz: For decades I owned two credit cards that earned airline miles with all my expenditures. I always paid the bills in full on time and never missed a payment. Earlier this year, I mailed in checks to cover the balance as I always do. But then I noticed the checks had not cleared my […]
Q&A: Approaching retirement? Don’t count on rules of thumb
Dear Liz: I have a few questions about my income taxes during my upcoming retirement. I would like to know if doing a Roth IRA conversion will be worth it for me since I might be in a higher tax bracket when I retire. Is there a rule of thumb in regards to doing this […]