Money Talk: Roth Gift Could Fund Down Payment
Question: My 29-year-old son recently married, and as a gift I pledged $20,000 as a down payment on a house. My daughter-in-law is beginning a career as a registered nurse and I know they will not be buying for a few years. Is there any type of account that will grow tax-free or tax-deferred for a first-time buyer? Maybe I could gift this money to them into a retirement account for the time being? Answer: You may be able to give them...
Money Talk: Don’t Help Teen Buy Luxury Car
Question: My son is almost 16 and has his heart set on a used luxury convertible. We have found a few that are priced at about $23,000 with about 50,000 miles. We are debating whether this is the right choice for him. The type he wants is not overpowered (it has a six-cylinder engine), has many safety features and gets decent gas mileage. He has worked hard since he was 8 in our business and has saved about half the money needed. (He...
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...
File-and-Suspend Strategy Eliminated
Washington — Married couples have no shortage of options for deciding when to collect Social Security benefits. But the budget deal President Obama signed into law Monday gets rid of one of the key strategies that has increased lifetime Social Security benefits by up to $60,000 for some high-earning couples. The strategy is known as file-and-suspend, in which one spouse could file to receive Social Security retirement benefits and...
