Melinda Perez, a financial educator, still remembers the first time she felt financially confident. She had recently started investing money outside of her employer-sponsored retirement account because she was finally earning more than she spent. “It was exciting because for once, I had what felt like extra money,” recalls Perez, who lives in San Antonio, […]
Recent Blog Posts
Q&A: 401(k) payouts and Social Security
Dear Liz: I was laid off from my job in late 2021 and at 62 was unable to find employment. After six months of unemployment benefits, I filed for Social Security. My 401(k) account from my previous employer was rolled into a traditional IRA. I also took a distribution to carry me through the months without […]
Q&A: Here’s how to budget your money using the 50/30/20 rule
Dear Liz: What is the formula now for expenses? When growing up, we were told that one-third of net income should go to rent, but recently, I read that 50% is the standard with the remaining 50% divided between wants and savings. Answer: You may be referring to the 50/30/20 budget, which suggests limiting “must haves” to 50% […]
Retiring? If you need a home loan, get one first
Retired engineers Kelly and Derek Barkey assumed they would be approved when they applied for a $50,000 home equity line of credit two years ago to fix up their new house. The Barkeys, now 56 and 59, had just sold their longtime home in Southern California and paid cash for a house worth about $850,000 […]
This week’s money news
This week’s top story: Smart Money podcast on making your big money reset. In other news: what do financial experts say about investing in AI stocks, if COVID costs will be covered when the health emergency is ended, and what to do when Medicare doesn’t cover your prescription drug. Smart Money Podcast: Making Your Big Money […]
Q&A: They lent their friend a van. It’s getting awkward. Now what?
Dear Liz: A friend of ours had a huge problem with car repairs last year. This friend got ripped off by a mechanic who took money for the work to repair his car and never repaired it. So my husband and I were kind enough to loan him our van for what we thought would be […]