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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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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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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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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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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952. Not sure whether you need a financial advisor, or which kind to look for? Laura Adams explains the seven types of financial professionals: bankers, insurance agents, tax accountants, estate attorneys, stockbrokers, registered investment advisors (RIAs), and certified financial planners (CFPs). She covers what each one does, how each is paid, and which are fiduciaries legally required to act in your best interest.

You'll learn the difference between fee-only, fee-based, and commission-based advisors, and how to spot conflicts of interest. Laura also shares where to search for and verify credentials, including LetsMakeAPlan.org, FINRA.org, AdviserInfo.SEC.gov, the IRS preparer search tool, and the National Association of Personal Financial Advisors. She closes with a list of questions to ask in a first meeting. These are especially helpful after a windfall, a new business, a divorce, a growing family, or when you're planning for retirement.

This episode originally ran in August 2025.

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1058. With 10-year U.S. Treasury yields above 5.3%, many investors are asking if they should ditch stocks and play it safe with fixed income. Host Laura Adams answers a listener’s question about investing when retirement is ten years away. You’ll learn the basics of bonds and how to use a three-bucket strategy to lower risk without giving up long-term growth.

Key Takeaways

• A bond is a loan an investor gives an entity (like the federal government, a local municipality, or a corporation) in exchange for interest payments over a period.
• 10-year U.S. Treasury bond yields have climbed above 5.3%, their highest rate in decades, providing an inflation-adjusted return of about 2%.
• The longer the maturity of a bond, the higher its interest rate will be.
• You can buy individual bonds or bond funds, which are diversified and an easy way to buy a preset portfolio of bonds from brokerages and investment platforms.
• Owning individual bonds to maturity eliminates price fluctuation risk, where a bond’s price shifts based on interest rates.
• Retirees can benefit from structuring their portfolio into three buckets: cash, bonds, and stocks, to protect against potential market losses.

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1057. Few things are more frustrating than learning your flight has been canceled. But do you know what you’re legally entitled to when an airline grounds your plane? Host Laura Adams breaks down your rights as an air traveler and explains how to protect your wallet when flights get disrupted.

Key Takeaways

• If an airline cancels your flight or changes your schedule by more than three hours domestically or six hours internationally, you’re entitled to a full refund if you choose not to rebook.
• Research your options using airline apps, by calling their domestic or international customer service, or by messaging their social media.
• Airlines are not required to issue vouchers for delays caused by factors they can’t control, such as severe weather, air traffic control shutdowns, cyberattacks, or unscheduled safety maintenance.
• Paying for your flight or award ticket taxes with a card that offers travel protections can help offset unexpected hotels, ground transportation, meals, and toiletries when your flight is canceled or significantly delayed.
• To claim credit card travel protections, request a "Statement of Delay" from the airline and keep itemized receipts for every expense.

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1056. Should you buy your next home before selling your current one, or is it safer to sell first? How does an existing mortgage impact your ability to qualify for a new loan, and where should your down payment actually come from? Host Laura Adams answers a listener’s questions about navigating the tricky logistics of moving and whether to convert her current house into a rental property.

Key Takeaways

• You can source your down payment from savings, home sale proceeds, a pre-arranged home equity line of credit (HELOC), or a short-term bridge loan.
• Carrying two mortgages at once counts toward a lender’s debt-to-income (DTI) ratio for underwriting.
• If you convert your primary home into a rental property, most lenders allow you to use 75% of rental income (backed by a signed lease) to offset your existing mortgage when qualifying for a new loan.
• A leaseback agreement allows you to sell your home, receive cash proceeds on closing day, and remain in the home as a tenant for up to 60 days.
• Holding two properties simultaneously usually requires higher credit scores and cash reserves.
• Consult a mortgage expert to calculate your exact borrowing limits under different scenarios before placing offers or listing your property on the market.

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1055. Host Laura Adams interviews Natasha Madan, CMO and consumer advocate at Credit Karma, about the financial habits of Gen Z, credit myths, and wise ways to use AI tools. You’ll learn practical strategies to optimize your credit, get the best interest rates, and build wealth faster.

Key Takeaways

• Taking small, consistent actions, such as reducing your credit utilization or consolidating high-interest debt, adds up to slowly improve your finances.
• Paying bills on time and paying off credit card balances in full every month are ways to build credit without accruing interest charges.
• Beyond getting loans at lower interest rates, credit scores affect other parts of your finances, like your insurance rates (in most states) and whether you can rent a home or apartment.
• Always check and optimize your credit months ahead of applying for a major loan (like a mortgage or auto loan) so you can get approved for a competitive interest rate and cut interest.
• Younger generations, like Gen Z, want to enjoy life and plan wisely for the future, instead of sacrificing too much in the present moment.

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