Money Talk: Mind the GAP Coverage Limitations
Question: In 2012, I financed a 2008 Honda at my credit union. The car was priced at $16,500. With a trade-in, the loan came to $22,000. Guaranteed Auto Protection coverage, or GAP, was factored into the loan payments, which were $464 a month. Last year, the car was wrecked and deemed a total loss by the insurance company. They paid the “book value” of $8,860 to the credit union. However, $6,000 remained on the loan. The GAP coverage...
Social Security Q&A: Can My Wife Qualify for Benefits on My Record?
Question: My wife didn’t work enough to earn 40 credits to qualify for Social Security retirement benefits. Can she qualify on my record? Answer: Even if your spouse has never worked under Social Security, she can, at full retirement age, receive a benefit equal to one-half of your full retirement amount. Your wife is eligible for reduced spouse’s benefits as early as age 62, as long as you are already receiving benefits. For more...
Online Threat Conviction Overturned
Washington — The Supreme Court on Monday threw out the conviction of a Pennsylvania man prosecuted for making threats on Facebook, but dodged the free-speech issues that had made the case intriguing to First Amendment advocates. Chief Justice John Roberts said it was not enough for prosecutors to show that the comments of Anthony Elonis about killing his ex-wife and harming others would make a reasonable person feel threatened. But...
Money Talk: Social Security as Longevity Insurance
Question: My question is on when to take Social Security. My financial adviser recommends that I file for my benefit at age 66 but suspend the application so my benefit can continue to grow until it maxes out at age 70. At 66, I would receive $2,614 per month. At age 70 I would receive $3,451 per month. In those 48 months I would have received $125,472. I calculate that it would take me 12.49 years to make up the difference of $837 a...
Money Talk: A Small Fee Can Have a Large Impact Over Time
Question: What can I do to stop my broker from deducting trading fees from my Roth IRA contributions, which I make monthly? Let’s say I invest $420 each month, but the broker takes $7, or $84 a year. Shouldn’t this be payable from a separate source so that I can invest the full contribution each year, thus reaping the eventual benefits of compounding the extra $84 sum over a long period of time? Answer: As you understand, $7 per month...
