Money Girl

1063. Stepping away from the workforce to care for family is meaningful work. But relying on a single paycheck can leave parents vulnerable. Host Laura Adams answers a listener’s question about transitioning to a one-income household. Whether you’re married or are domestic partners, you’ll learn strategies to create a strong financial safety net.

Key Takeaways
Because a one-income family faces more financial risk, it’s important to build a liquid emergency cushion of at least six months of living expenses in an FDIC-insured high-yield savings account.
Life insurance shouldn't just replace the earner’s paycheck; having a term life policy on the stay-at-home parent protects against the annual expense of childcare.
Legally married couples filing taxes jointly can fund a spousal IRA up to annual limits for the non-working spouse.
A working partner can gift funds for a non-working partner using a brokerage account in their name.
A last will and testament (which names legal guardians for minor children), power of attorney, health care proxy, and living will ensure key decisions about your family’s future stay in your control.
Accounts with named beneficiaries, like 401(k)s, IRAs, and life insurance policies, bypass probate and transfer directly to the named individual, making regular beneficiary audits critical after marriage, divorce, or childbirth.

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Transcripts available at QuickandDirtyTips.com.
Email: Laura@LauraDAdams.com or leave a voicemail: (302) 364-0308.
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1062. Are massive credit card sign-up bonuses (SUBs) really worth chasing? Or do they actually hurt your credit? Host Laura Adams explains the real impact of opening credit cards for sign-up bonuses, closing accounts shortly after, and managing multiple cards. You’ll learn six strategies to maximize card rewards, control your credit utilization, and protect your credit scores.

Key Takeaways
Only chase a high-value sign-up bonus if you can reach the spending threshold with routine, planned purchases. Buying unnecessary items or carrying a balance with high interest charges wipes out the rewards.
Applying for a card results in a temporary hard inquiry check, but adding a new credit line increases your total available credit, which lowers your overall credit utilization ratio and boosts your scores over time.
Canceling a card shortly after earning and spending a bonus can cause your credit utilization ratio to spike.
If you want to cancel a card with a high annual fee, consider downgrading to a less expensive one in the same card family to keep your credit limit intact.
Inactive cards can be closed by issuers, or they can cut your credit limit. You can keep cards active with a small recurring charge or an occasional charge to preserve your credit.
Episode 1040: Keep your cards active

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Email: Laura@LauraDAdams.com or leave a voicemail: (302) 364-0308.
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1061. Worried about locking your money away in a retirement account? Host Laura Adams answers a question about choosing investments without losing sleep over liquidity. You’ll learn the pros and cons of taxable brokerage accounts versus retirement accounts, the surprising Roth IRA "loophole" for penalty-free withdrawals, and a simple strategy for choosing diversified investments.
Key Takeaways
Taxable brokerage accounts offer complete liquidity with no withdrawal penalties or deposit caps, but require paying annual taxes on dividends and capital gains. Retirement accounts offer tax savings, but carry strict annual limits and early withdrawal restrictions.
Roth IRA contributions can be withdrawn at any time, for any reason, with no tax or penalty, giving you a built-in safety net.
Stick to broad-market index ETFs (like S&P 500 or Total Stock Market funds), which are diversified and rarely generate unexpected annual tax liabilities.
Build an emergency fund as a top financial priority, then maximize any free matching for a workplace retirement plan, and then fund a Roth IRA.
Consider using a taxable brokerage account for non-retirement or mid-term financial goals.
Investing consistently is key to building wealth with the least effort possible.

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Transcripts available at QuickandDirtyTips.com.
Email: Laura@LauraDAdams.com or leave a voicemail: (302) 364-0308.
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1060. Dreaming of retiring early or taking an extended career break, but worried your money is locked away until age 59.5? Host Laura Adams explains a powerful strategy to retire early and avoid expensive penalties.

Key Takeaways
A Roth conversion ladder allows early retirees to move tax-deferred funds into a Roth IRA and access the converted amount tax- and penalty-free before 59.5.
Each Roth conversion requires a separate five-year waiting period before you can withdraw it penalty-free.
Building a Roth conversion "ladder" means executing annual conversions so that starting in year six, you unlock a new amount of penalty-free funds to spend.
Doing Roth conversions in low-income years, such as at the start of early retirement, allows you to pay less income tax.
Have a plan to pay taxes on a Roth conversion from savings or a taxable brokerage account and not from your retirement account.
Be aware that having higher income due to a Roth conversion could inadvertently reduce ACA health care subsidies.
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Email: Laura@LauraDAdams.com or leave a voicemail: (302) 364-0308.
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1059. Host Laura Adams sits down with Courtney Alev, Consumer Financial Advocate and Director of Product Management for TurboTax. They discuss real listener questions about budgeting, tax refund strategies, and paying down debt. You’ll learn strategies and tips for saving more, managing debt wisely, adjusting tax withholding, and curbing impulse spending to improve your financial life.

Key Takeaways
Treat savings like an essential bill or subscription by automatically transferring even a small amount into a dedicated savings account every payday before paying other expenses.
Tracking your total monthly spending is the best way to take control of your cash flow and see where small cuts can make a big difference.
Rent is the maximum you might pay per month, but a mortgage is the minimum, due to property taxes, insurance, maintenance, and unexpected repair costs.
A large tax refund means you overpaid taxes throughout the year; however, you may be able to adjust your W-4 withholding for higher monthly paychecks.
Tackle credit card balances from highest to lowest interest rate to save the most money over time.
Pause for at least 24 hours before making a non-essential purchase over a certain amount to help eliminate impulse purchases.

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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.