Money Girl

1050. Buying a car can feel like a financial landmine. Host Laura Adams answers a listener’s question about buying a car before starting his first job. You’ll learn how to evaluate your current car, set a budget, secure financing, and find a great deal that doesn’t wreck your financial goals!

Key Takeaways:
Compare a car’s repair bill against months of new car payments and a potentially higher insurance premium before giving up on an older vehicle.
To keep transportation costs affordable, follow the 20/4/10 rule to put 20% down, finance for no more than four years, and cap total expenses at 10% of income.
Get an auto loan pre-approval before you start car shopping so you have an interest rate benchmark if a dealer offers financing.
Request auto insurance quotes for different cars you’re considering so you understand the cost before buying a vehicle.
Focus negotiation on a vehicle’s total purchase price rather than the monthly payments, which can be adjusted to include fees or longer loan terms.
Leasing a car may make financial sense if you need a lower monthly payment, drive lower annual miles, prefer a new vehicle every few years, and don’t care about building long-term equity.

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Transcripts available at QuickandDirtyTips.com.
Email: Laura@LauraDAdams.com or leave a voicemail: (302) 364-0308.

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1049. Think building wealth requires a six-figure salary? Think again. Host Laura Adams breaks down five small, high-impact habits that lead to serious long-term wealth, regardless of your current income. You’ll learn how to turn quiet daily routines into big financial freedom!

Key Takeaways
Wealth is built on consistency. Setting up automatic transfers to high-yield savings and retirement accounts eliminates the temptation to spend.
Taking advantage of tax-advantaged accounts creates opportunities for growth and short- and long-term tax savings.
Low-cost index funds combined with dollar-cost averaging offer a proven, stress-free path to long-term market growth.
Using the debt avalanche method to target high-interest debt first yields a guaranteed return equal to the interest rate avoided.
Income is what comes in; net worth is what stays. Regular updates to a net worth dashboard provide the truest measure of your financial progress.

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Transcripts available at QuickandDirtyTips.com.
Email: Laura@LauraDAdams.com or leave a voicemail: (302) 364-0308.
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1048. Receiving an inheritance can be a life-changing financial event, but passing a portion of those funds along to family members comes with a unique set of tax rules. Host Laura Adams breaks down the federal tax consequences of sharing an inheritance. You’ll learn how inherited assets are taxed at receipt, how the federal annual gift tax exclusion works, and smart tax-free strategies to help your loved ones without triggering extra tax paperwork.

Key Takeaways:
Receiving plain cash or life insurance proceeds does not trigger federal income tax, and you do not need to report it on your federal return. However, a gift giver could owe state tax depending on where they live.
As a gift giver, you can exclude up to $19,000 per person per year (or $38,000 if married) without reporting it.
Gifts above the exclusion simply require filing IRS Form 709 to count against your $15 million lifetime exemption, meaning almost no one owes actual gift tax.
Inheriting property or taxable investments adjusts the asset’s cost basis to its fair market value on the owner's date of death, erasing past appreciation.
If you want to pay tuition or medical bills directly for someone else, it does not count toward your $19,000 annual exclusion or require Form 709 reporting.
You can superfund a 529 savings plan for someone else and use five years’ worth of annual exclusions at once.

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Transcripts available at QuickandDirtyTips.com.
Email: Laura@LauraDAdams.com or leave a voicemail: (302) 364-0308.
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1047. Host Laura Adams cuts through the confusion and explains the basics of Medicare for anyone approaching 65 or helping a relative compare options. You’ll learn how parts of Medicare work, which expenses Medicare doesn’t cover, how to fill insurance gaps, avoid lifetime penalties, and the truth about costly Medicare myths.
Key Takeaways:
Medicare Part A covers hospital and inpatient care (premium-free for most), while Part B covers doctor visits and outpatient services for a monthly premium ($202.90 in 2026).
Medicare Advantage (Part C) is an all-in-one alternative that bundles Parts A, B, and usually D into a single plan with network restrictions and out-of-pocket caps, often adding basic dental and vision coverage.
Original Medicare doesn't cover long-term care such as assisted living or nursing home stays, or routine dental, vision, and hearing care.
Medigap protects against out-of-pocket costs, such as deductibles and 20% coinsurance left behind by Original Medicare, but it cannot be combined with Medicare Advantage.
Missing your Initial Enrollment Period triggers lifetime penalties unless you have active, creditable employer health coverage.
Enrollment isn't automatic unless you already receive Social Security benefits when you turn 65.

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Transcripts available at QuickandDirtyTips.com.
Email: Laura@LauraDAdams.com or leave a voicemail: (302) 364-0308.
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1046. Did your teenager earn money from a summer or part-time job? Laura answers a listener’s question about two tax-advantaged savings accounts for minors: the Roth IRA and the new Trump Account. You’ll learn how both accounts work and where working teens or their parents should put their hard-earned dollars first.
Key Takeaways:
Minors can have a custodial Roth IRA when they earn income from W-2 employment or self-employment and contribute up to $7,500 or 100% of earned income, whichever is less.
A Section 530A Trump Account can be opened for kids under 18 regardless of whether they earn income, and contributions can total $5,000 annually.
A Roth IRA offers tax-free growth and tax-free withdrawals in retirement.
A Trump Account grows tax-deferred, and once the owner turns 18, it becomes a traditional IRA, with distributions taxed (except for contributions that were previously taxed).
Parents or relatives do not need to use a minor’s money to fund a Roth IRA; they can match or make an eligible contribution for the minor.
After age 18, doing a Roth conversion on an old Trump Account is a wise move to lock in tax-free growth forever.
Eligible working minors can max out a Custodial Roth IRA up to their earnings limit and receive up to $5,000 in a Trump Account from family, friends, or employers in the same tax year.
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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.