The Color of Money: Personal Finance Advice Column from Michelle Singletary

Health care in retirement probably costs more than you think

Michelle Singletary — Fri, 17 May 2013 14:23:05 GMT

When it comes to thinking about how much money we all need to retire comfortably, it gives us a headache. I just need to say that upfront before telling you the latest news, which is sure to scare you even more about retirement.

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Calculating a ticket’s true cost

Michelle Singletary — Wed, 15 May 2013 00:00:28 GMT

For many drivers, the fear of rising auto insurance rates keeps them from driving too fast or leaving their license at home.

Get into an accident or get a ticket and what’s the second thought you might have?

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Requiring employers to provide retirement income estimates under consideration

Michelle Singletary — Sat, 11 May 2013 15:00:00 GMT

If you have a defined benefit pension or a traditional plan provided by your employer, federal law says you must be given an illustration of how much money you can expect to receive each month.

But if you have money invested in a 401(k), the only thing you may see is a lump sum amount and little if any direction on how that money translates into a monthly payment.

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Michelle Singletary: A mom’s view of family finances

Michelle Singletary — Tue, 07 May 2013 23:01:00 GMT

Here’s a no-brainer: Mothers and fathers have different styles of communication when it comes to talking about money.

Fidelity Investments released a study showing that mothers have far more substantive discussions about money than fathers do when talking about estate planning or wills, health and elder care topics, and the ability to cover living expenses in retirement.

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Michelle Singletary: Grass isn’t always greener across financial lines

Michelle Singletary — Fri, 03 May 2013 13:57:00 GMT

With so many families still trying to recover from the Great Recession, the wealthy aren’t feeling much love from the American public.

The average net worth of households in the upper 7 percent of the wealth distribution chain increased 28 percent during the first two years of the nation’s economic recovery compared with a 4 percent drop for households in the lower 93 percent, according to a Pew Research Center analysis of data from the Census Bureau.

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Keeping prom in perspective

Michelle Singletary — Tue, 30 Apr 2013 23:32:26 GMT

Don’t tell her I said this, but I’m happy my daughter isn’t overexcited about her senior prom.

“I’m going, but only because I don’t want to look back years from now and think I’ve missed out on something,” Olivia said as she discussed her budget for this rite of passage for which many students and parents spend way too much money.

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Michelle Singletary: Financial decisions can have long-lasting effects

Michelle Singletary — Fri, 26 Apr 2013 14:06:00 GMT

When it comes to your money, what you decide today can affect your finances for years to come.

And yet many people don’t decide anything.

In a survey that looked at household savings, only about half of Americans admitted they had good savings habits, according to America Saves, managed by the Consumer Federation of America, and the American Savings Education Council, managed by Employee Benefit Research Institute.

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Beware of professional high-tech cons

Michelle Singletary — Wed, 24 Apr 2013 02:05:00 GMT

I received a distressing note from “a friend” named Mark who needed help with his bills after his bag and passport were stolen in Manila.

“I have made contact with my bank but it would take me 3-5 working days to access funds in my account,” read the e-mail. “The bad news is my flight will be leaving very soon but I am having problems settling the hotel bills and the hotel manager won’t let me leave until I settle the bills. I need your help financially and I promise to make the refund once I get back home, you are my last resort and hope.”

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How to pay a lower rate without refinancing

Michelle Singletary — Fri, 19 Apr 2013 13:00:00 GMT

Do you have refinance envy?

Come on, you can admit it. You’ve been at an event or to church or having lunch with co-workers and someone brags about the interest rate she just got when refinancing her mortgage. You stay silent, grieving that you can’t take advantage of the low interest rates for mortgages.

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Owe taxes? Be your own savior with the IRS

Michelle Singletary — Wed, 17 Apr 2013 02:39:00 GMT

Millions of Americans scrambled to get their taxes done and paid by April 15.

The majority of filers — three out of four — receive refunds. This year, the refunds were pretty large, $3,000 on average.

But what if you didn’t hustle to file because you couldn’t pay? Or maybe you did file but couldn’t pay all that you owed? One in six taxpayers owes money, according to the Internal Revenue Service.

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Retirement planning doesn’t have to be rocket science

Michelle Singletary — Fri, 12 Apr 2013 14:59:22 GMT

You know the saying, “It’s not rocket science.”

Well, retirement planning today is rocket science. It’s often confusing and overly complex. There’s so much you need to know.

Let me put you to the test. How much do you know about the following?

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Time to improve your financial knowledge

Michelle Singletary — Tue, 02 Apr 2013 23:13:42 GMT

The major financial activity people associate with April is tax day.

But April is also the perfect month to push financial literacy. After all, you’ve had to pull together major information about your finances to do your taxes.

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Dividing up money can cause divisions in families

Michelle Singletary — Fri, 29 Mar 2013 13:08:55 GMT

As much as we like to think our relationships can’t be defined by money, it happens.

Lately, I’ve been asking people to send me questions on how to deal with financial issues brewing in their families. Mix finances and family, and the results often leave somebody angry or hurt, which is what happened in the following situation:

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Tax procrastination has a price

Michelle Singletary — Tue, 26 Mar 2013 21:56:56 GMT

The Internal Revenue Service has good news for some taxpayers.

First, if you didn’t file your tax return in 2009, you still have time — until April 15 — to claim any refund you might be due. The IRS estimates that half the potential refunds for 2009 are for more than $500. That’s not chump change in my book. It could be enough to help pay for the preventive maintenance you’re supposed to regularly get for your car.

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A March Madness that is eminently sensible

Michelle Singletary — Fri, 22 Mar 2013 13:00:50 GMT

Part of the thrill of the NCAA college basketball tournament is filling out the brackets.

During March Madness, 68 teams vie for the championship. There are several rounds, during which the brackets get down to 32 teams, the Sweet 16, the Elite Eight and then the Final Four.

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Retirement is a numbers game

Michelle Singletary — Wed, 20 Mar 2013 01:26:35 GMT

Do you know your number?

That would be the amount of money you need — including your Social Security and a pension (if you have one) — to retire comfortably.

A few years ago, the financial services company ING created a humorous advertising campaign around “Your Number.” Here’s how one ad went:

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H&R Block glitch delays tax refunds

Michelle Singletary — Fri, 15 Mar 2013 14:17:56 GMT

What would a tax season be without confusion and last-minute changes?

First up, a lot of H&R Block customers are irate about a glitch that will delay their federal tax refunds by weeks.

For days, H&R customers complained on Facebook that they weren’t getting a clear explanation as to why their refunds were delayed. As it turns out, there was a problem with returns that included Form 8863, which is used to claim two higher education credits — the American Opportunity Tax Credit and the Lifetime Learning Credit.

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Most Americans found to be unprepared for financial emergencies

Michelle Singletary — Tue, 12 Mar 2013 22:56:05 GMT

It’s always good to have supporting documentation to back up the conventional wisdom.

Using data collected during the Great Recession, the FINRA Investor Education Foundation has produced some compelling evidence of what happens to people who don’t have a rainy day fund for emergencies.

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Quit relying on your tax refund

Michelle Singletary — Sat, 09 Mar 2013 22:02:01 GMT

Many taxpayers think that getting a federal refund is a big deal. They look forward to it all year.

It’s the largest lump sum lots of people receive, according to the American Tax and Financial Center at TurboTax, the tax software company.

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Everyday worries on their minds

Michelle Singletary — Wed, 06 Mar 2013 00:38:31 GMT

When I recently hosted an online discussion, I wondered whether I would get bombarded with questions about the automatic federal spending cuts that have dominated the news out of Washington.

What I heard came from people trying to deal with the everyday personal financial issues that dominate their lives. Here are some examples, and my answers.

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It’s only a man’s world if you yield to that notion

Michelle Singletary — Fri, 01 Mar 2013 18:53:03 GMT

I get a chill whenever I listen to James Brown soulfully sing “It’s a Man’s Man’s Man’s World.”

I especially like to shout “you got that right” when he says, “but it wouldn’t be nothing, nothing without a woman or a girl.”

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The sequester’s wide reach

Michelle Singletary — Wed, 27 Feb 2013 02:17:21 GMT

There’s one thing for certain about the looming federal spending cuts. Even if there’s a deal to avert the blanket cuts, things are going to get financially tight for a lot of people who least expect it.

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Families could use real help with the high cost of college

Michelle Singletary — Fri, 22 Feb 2013 13:05:12 GMT

With my 17-year-old daughter headed to college, I tried out the new college scorecard tool launched by the Obama administration after the president’s State of the Union address.

I was not impressed. Some links didn’t work, and certain information I wanted wasn’t there. Overall, the tool just didn’t do much to help our family figure out which college would be the most affordable.

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Stuff gets in the way

Michelle Singletary — Wed, 20 Feb 2013 01:54:00 GMT

Why would a couple risk so much — respect and even their freedom — for furs, furniture and a fedora?

This was the question that came to my mind when I read the federal charges against Jesse L. Jackson Jr., the former congressman from Illinois. He’s charged with conspiracy, making false statements and mail and wire fraud. In all, he’s accused of misusing about $750,000 in private campaign funds. Jackson’s wife, Sandra Stevens Jackson, who resigned her seat on the Chicago City Council, reached an agreement with the U.S. Attorney’s Office to plead guilty to one count of tax fraud.

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When buying car insurance, compare rates and don’t underestimate needed coverage

Michelle Singletary — Fri, 15 Feb 2013 13:30:13 GMT

Twice in the past few years, a deer has hit my car.

Yes, I meant to say the deer hit me. The animals bolted from a wooded area into my path. (Only one survived.)

Turns out, a lot of the damage done to cars in this country isn’t from colliding with another automobile. Two-car accidents make up fewer than half of all incidents, according to an analysis by CarInsurance.com, which provides insurance advice and online quote comparisons.

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