Financial Planning Blog
I owe money to Social Security. What’s next?
Q. I will be 66 years old in on Oct. 31, 2020. I have been on SSDI for three years and working part-time. I thought I was keeping my income under $1,180 per month for there were several times where we had three pay periods each month instead of only two. Even though I...
Can I suspend Social Security so my wife gets a benefit?
Q. I will be 65 next April. I believe this puts my full Social Security benefits date to 66 1/2. My wife is 62 with virtually no benefits. Can I sign up for Social Security at 65 but not collect benefits while my wife collects half of my benefit? What would happen if...
I opted out of Social Security. Can I change my mind?
Q. When I was 17, I signed a form exempting me from paying into Social Security for religious reasons. Now that I’m 50, I can see that was a mistake. Other things such as Medicare are tied to Social Security. What is the best way to start paying into the system? —...
Know this before you open a 529 plan for college savings…
Q. I have questions about 529 plans. Can one opened in New Jersey be used to pay down college debt? Can it be used for the spouse of the named beneficiary? And it be used for a sibling of the named beneficiary? — Parent A. These are great questions. 529 plans can be...
When you get married, what happens to Medicare premiums and the Homestead Rebate?
Q. How do the Medicare premium surcharge and property tax rebates work when you get married? Because both programs have eligibility based on one or two years before the current year, would they exclude the income of the new spouse? — Just married A. Let’s take a look...
Mortgage rates are at a 3-year low. Is now a good time to refinance your home?
Refinancing a mortgage is a big deal. You can potentially save hundreds of dollars a month, and tens of thousands over the life of your loan. After several years of rising rates, we’ve seen a reversal. Rates have come down substantially in a short period of time, and...
Should I buy an annuity if I have no pension?
Q. Since many millenials are working for companies offering no pensions, would it be wise to get an annuity that could act like a pension? — Wish I had one A. There are very few pensions to find these days. You’ll still see them for public sector employees, but fewer...
Can I take money from my Roth IRA without penalty?
Q. I have a question regarding the Roth IRA five-year rule. If I contributed $1,000 for five consecutive years, from 2010 to 2015, can I withdraw the full $5,000 plus gains in 2015 without penalty or do I need to wait until 2019 to withdraw the 2014 contribution? —...
How will paying off my mortgage affect my credit score?
Q. My mortgage is almost paid off, I have a $10,000 car loan and a small amount of debt on a credit card. My credit score is 830. How will the mortgage payoff affect my score? I’m also thinking of taking a home equity line of credit (HELOC). Should I do that before or...
How do I get collections accounts off my credit report?
Q. I lost my job a few years ago and could not keep up with all my bills. I defaulted on some credit cards, but paid the mortgage, car loan, utilities and so forth on a regular basis when I got my disability approved. Some bills went into collections. The original...