Money Talk: 529 Plans Are Among the Best Savings Vehicles
Question: I recently gave birth to a little boy. I am wondering about the best savings vehicle that would offer flexibility for when family gives him money. I don’t want to tie it up in a 529 college savings plan in case he doesn’t want to go to college or has other needs. Answer: If you want your child to have a reasonable shot at a middle-class lifestyle in the future, some kind of post-secondary education will be necessary. It may...
Money Talk: Time for Son to Move His IRA
Question: My son has an IRA at his credit union. He puts in small amounts when he can. Recently the credit union lowered the interest rate and started charging a $25 yearly maintenance fee, which now is taking all the interest back. Is this legal? Answer: Yes. It’s also a good reason to move the account elsewhere. Your son’s retirement account was shrinking in real terms even before the fee ate up all his interest. Even though rates...
Money Talk: More Questions and Answers About the End of ‘File and Suspend’
Dear Readers: The changes Congress made to the “claim now, claim more later” Social Security strategy generated so many questions from readers that I’m devoting a second column to answering some of those queries. Next week, we’ll get back to the usual mix of personal finance topics. Question: I am divorced after being married for 27 years and have not remarried. I was planning to file for early retirement benefits at 62 (I’m 58 now)...
Money Talk: Explaining the End of ‘File and Suspend’
Dear Readers: Congress just killed the Social Security strategy known as “claim now, claim more later” that allowed married couples to boost their benefits by tens of thousands of dollars. The changes, which were part of the recent budget deal, also eliminated the option of getting a lump-sum payout if you suspended an application for benefits and later changed your mind. Today’s column will focus on those changes. Question: My...
Money Talk: Insurance Options for Overweight Husband
Question: My husband doesn’t qualify for term life insurance because he is overweight and pre-diabetic. Although he’s working on getting in shape, I’m afraid something might happen. I should add we have a 3-year-old daughter, and he is the main breadwinner. What would you suggest we do to ensure we are covered if something were to happen? Answer: Just because your husband was turned down by one insurer doesn’t mean others won’t accept...
