Money Girl

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.

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

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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.

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

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

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Email: Laura@LauraDAdams.com or leave a voicemail: (302) 364-0308.
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1022. If you were expecting interest rates to drop, rising inflation is making it more likely for them to go up this year. Laura reviews six moves you shouldn’t overlook in a rising-rate environment to make your money work harder for you.

Key takeaways
When inflation rises, the Fed raises interest rates to slow down spending and demand, eventually causing prices to decrease so spending increases.
With sticky inflation and the expectation of rate hikes, borrowers need to watch interest rates on their debt, using a tool like my PFS.
When variable-rate debts, such as credit cards, increase, it’s wise to pay them off faster and reduce the interest expense.
If you’re considering a large purchase, like a home or vehicle, maintaining good credit and locking in a lower interest rate sooner rather than later are wise strategies.
Higher interest rates benefit savers, so using a high-yield savings account can maximize your earnings.

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.

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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.