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Wednesday’s need-to-know money news

August 10, 2022 By Liz Weston

Today’s top story: This year’s summer travel FOMO is real. Also in the news: Is it better to book Airbnbs in advance or last minute, the cheapest road trip in America, and the basic loan terms everyone needs to know before borrowing money.

This Year’s Summer Travel FOMO Is Real
It can be challenging to balance your financial goals with the fear of missing out on exciting summer travel.

Is it Better to Book Airbnbs in Advance or Last Minute?
Neither last minute nor way out, booking about a month in advance is likely to get you the best deal.

This May Be the Cheapest Road Trip in America
Gas price variance makes some U.S. regions more affordable for traveling the country’s highways.

The Basic Loan Terms Everyone Needs to Know Before Borrowing Money
Need to borrow money? Here are the basics for first-time borrowers.

Filed Under: Liz's Blog Tagged With: Airbnb, borrowing money, Loans, road trips, summer travel

Friday’s need-to-know money news

April 3, 2020 By Liz Weston

Today’s top story: COVID-19 loan options and payment relief. Also in the news: Why you shouldn’t give your adult kids your house, managing the high cost of infertility, and when you’ll get your Coronavirus relief check.

COVID-19: Loan Options and Payment Relief
Lenders respond to the pandemic.

Don’t Give Your Adult Kids Your House
Good intentions could cause big problems.

Managing the High Cost of Infertility
Evaluating your options.

Here’s When You’ll Get Your Coronavirus Relief Check
A look at the schedule.

Filed Under: Liz's Blog Tagged With: adult kids, Coronavirus, COVID-19, infertility, Loans, payment relief, real estate

Q&A: How to keep a loan to family from turning into a problem

August 19, 2019 By Liz Weston

Dear Liz: My husband and I have saved close to $2 million. He is 58, and I am 59. Our son is a hardworking, bright young man awaiting responses to medical school applications. My husband wants to loan him $200,000 to $500,000 to reduce his debt from interest on loans. I want to help too, but I think $200,000 should be the limit.

I want a legal contract to determine when it will be paid back, how much interest we will charge, and so on. My concern is that we are unsure how to set this up and I don’t want a nice gesture to end up causing problems with our son down the road. My husband is still working and has a nominal pension from military retirement.

Answer: The first rule of friends-and-family loans is to offer only what you can afford to lose. Even with all the proper documents, many loans turn into inadvertent gifts when the borrower can’t or won’t make the payments.

So your first stop should be a fee-only financial planner, who can review your entire financial situation, including your retirement plans, and let you know how much you can afford to lend your son.

The exact amount will depend on when your husband plans to stop working, how much you anticipate spending and how much you expect to receive from the pension and from Social Security, among other issues.

The planner also can tell you what interest rate you’ll need to charge to avoid having to file gift tax returns with the IRS.

Once you have that information, you and your husband can work together to determine the size of the loan and the interest rate. You can find promissory note templates online, or you can hire an attorney to draft the actual agreement.

Filed Under: Q&A Tagged With: adult children and money, college tuition, Loans, q&a

Thursday’s need-to-know money news

July 25, 2019 By Liz Weston

Today’s top story: Is your wealth dripping away? Also in the news: How to navigate the Equifax data breach settlement, getting real about checking your finances, and looking for “relationship pricing” when you need a loan.

Is Your Wealth Dripping Away?
Draining your wallet, one drop at a time.

How to Navigate the Equifax Data Breach Settlement Offer
Find out what you’re entitled to.

Can’t Bear to Check Your Finances? Here’s Help
Biting the bullet.

Look for ‘Relationship Pricing’ When You Need a Loan
The benefits of monogamous banking.

Filed Under: Liz's Blog Tagged With: Equifax data breach, home repairs, Loans, losing wealth, personal finances, relationship pricing, water damage

Friday’s need-to-know money news

March 22, 2019 By Liz Weston

Today’s top story: How to give money advice that sticks. Also in the news: 3 steps to spring clean your credit card debt, how to research 401(k) funds on Morningstar, and using a loan to pay your tax bill.

How to Give Money Advice That Sticks
Focus on what you say and how you say it.

3 Steps to Spring-Clean Your Credit Card Debt
Scrub that debt away.

How to Research 401(k) Funds on Morningstar
Navigating the investment research company.

Should You Use a Loan to Pay Your Tax Bill?
Check the interest first.

Filed Under: Liz's Blog Tagged With: 401(k), credit card debt, financial advice, Loans, money advice, Morningstar, tax bills

Friday’s need-to-know money news

March 8, 2019 By Liz Weston

Today’s top story: 3 things that will change when you’re a homeowner. Also in the news: 3 times you can pay taxes with plastic and come out ahead, eight ways you can save money right now, and what happens if you default on a loan.

3 Things That Change When You’re a Homeowner
All you’ll think about is money.

3 Times You Can Pay Taxes With Plastic and Come Out Ahead
Build up your rewards.

Eight Ways You Can Save Money Right Now
Automate your savings.

What Happens if You Default on a Loan?
Don’t take it lightly.

Filed Under: Liz's Blog Tagged With: Credit Cards, default, home ownership, Loans, real estate, Savings, Taxes, tips

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