Money Girl

1027. New graduates can create financial freedom by consistently following a few fundamental money rules. Laura reviews seven tips that can set young adults up for a lifetime of financial success.

Expert advice for navigating life after graduation — for new grads and the people cheering them on. From finances and freelancing to nutrition and knowing when to ask for help, find it all in our "Life After Graduation" playlist on Spotify.

Key takeaways:
Accepting various types of financial help from family can be part of a new graduate’s launchpad to independence.
Maintaining a cash cushion in a high-yield savings account should be a top priority for creating financial security.
Building your credit scores is an excellent way to get access to credit at lower interest rates and save on various products and services.
Keeping debt to a minimum and understanding any student loan repayment options can improve your current and future financial well-being.
The power of compounding makes it wise to invest sooner rather than later, even if you can only put away small amounts consistently.

Discover more from Money Girl!
Facebook
Newsletter
Transcripts available at QuickandDirtyTips.com.
Email: Laura@LauraDAdams.com or leave a voicemail: (302) 364-0308.
Hosted on Acast. See acast.com/privacy for more information.

1026. Travel insurance expert, Christina Tunnah of World Nomads, breaks down the benefits of coverage and costly mistakes travelers should avoid. From medical emergencies abroad to unexpected trip interruptions, get insider tips on how to travel and explore the world with less risk and financial stress.

Interview topics covered
How to choose a travel plan based on your health, belongings you take on a trip, and the cost of a trip.
Whether you should rely on travel protections offered by a credit card.
Mistakes travelers make when buying travel insurance and filing claims.
How to know if ‘cancel for any reason (CFAR)’ is worthwhile coverage you should purchase.
Pre-existing medical conditions and other exclusions to watch for when shopping for a travel policy.
The difference between expat healthcare and travel insurance.
Why having travel medical coverage is essential when traveling abroad.
Which countries are affected by war, sanctions, and travel restrictions.

Discover more from Money Girl!
Facebook
Newsletter
Transcripts available at QuickandDirtyTips.com.
Email: Laura@LauraDAdams.com or leave a voicemail: (302) 364-0308.

Hosted on Acast. See acast.com/privacy for more information.

1025. If you’re considering selling a home, you may wonder how it will affect your taxes. Laura answers a listener’s question on this topic and explains how to use a legit, massive tax exclusion that allows many homeowners to skip home sale taxes altogether.

Key takeaways
Selling an asset, such as a home, for a profit results in capital gains tax, with a rate that depends on your income and how long you owned it.
The Section 121 exclusion, known as the home sale capital gains tax exclusion, allows eligible single taxpayers to exclude up to $250,000, or joint tax filers up to $500,000 of capital gains on their primary residence.
Homeowners qualify for the gains exclusion if they owned and lived in the home for at least two years during the five years preceding the sale.
There are legal exceptions where you qualify for the full or partial gains exclusion even if you sell your home before living in it for two of the previous five years.

Discover more from Money Girl!
Facebook
Newsletter
Transcripts available at QuickandDirtyTips.com.
Email: Laura@LauraDAdams.com or leave a voicemail: (302) 364-0308.
Hosted on Acast. See acast.com/privacy for more information.

1024. Are you ready to quit working or to begin a financially independent lifestyle? Laura covers four ways to access your retirement funds without paying a hefty 10% early withdrawal penalty before 59.5.

Key takeaways
Using a tax-advantaged retirement account has many benefits, but one downside is typically paying a 10% penalty for withdrawals before age 59.5.
The rule of 55 is an IRS rule that allows employees to take penalty-free retirement plan distributions when they leave during or after the calendar year of their 55th birthday.
With a Roth IRA, you can withdraw your original contributions at any age, for any reason, entirely tax- and penalty-free.
A SEPP or 72(t) payment plan is an IRS rule that allows you to take equal distributions from a retirement account penalty-free, no matter your age, if you follow strict guidelines.
A brokerage account allows you to take distributions penalty-free, no matter your age, but doesn’t offer the tax perks of a retirement account.

Upcoming Wedding Series Coming Up: We want your questions about wedding finances! Whether you're the bride, groom, or a guest, send us your questions about budgeting for the big day. Email: money@quickanddirtytips.com or leave a voicemail: (302) 364-0308.

Discover more from Money Girl!
Facebook
Newsletter
Transcripts available at QuickandDirtyTips.com.
Email: Laura@LauraDAdams.com or leave a voicemail: (302) 364-0308.
Hosted on Acast. See acast.com/privacy for more information.

1023. Are you worried about the future cost of education for yourself or a child? Laura reviews ten ways a 529 savings plan supercharges education savings and can even be used for young students, non-traditional coursework, and professional career pivots.

Key takeaways
Contributions to a 529 plan get taxed upfront, but the account growth and withdrawals for qualified expenses are tax-free.
States sponsor 529 plans with various benefits and fees; however, you don’t have to be a state resident to participate in the plan.
There are no income restrictions to contribute to a 529, and owners typically name a child, who is the future student, as the account beneficiary.
Qualified 529 expenses include many costs associated with traditional college, but also include trade schools, vocational training, and professional certifications.
You can spend up to $20,000 per year on younger students from kindergarten through high school at public, private, or religious schools.
Leftover 529 funds can be rolled over into a beneficiary’s Roth IRA, with certain restrictions.

Upcoming Wedding Series Coming Up: We want your questions about wedding finances! Whether you're the bride, groom, or a guest, send us your questions about budgeting for the big day. Email: money@quickanddirtytips.com or leave a voicemail: (302) 364-0308.

Discover more from Money Girl!
Facebook
Newsletter
Transcripts available at QuickandDirtyTips.com.
Email: Laura@LauraDAdams.com or leave a voicemail: (302) 364-0308.
Hosted on Acast. See acast.com/privacy for more information.