Money Girl

1019. If you have enough home equity and not enough cash, you may wonder about taking a home equity line of credit (HELOC). Laura answers a listener’s question about whether taking a larger HELOC to pay for an expensive car repair and an upcoming wedding is a good or “horrible” idea.
Key Takeaways:
Most lenders require you to maintain at least 20% home equity after tapping it with a HELOC.
HELOC borrowers must also have enough income, a suitable debt-to-income ratio, and sufficient credit scores to qualify.
Getting a HELOC gives you more flexibility and lower interest rates than other financing options, such as a credit card.
If you use HELOC funds to buy, build, or remodel a home, interest paid on a limited amount of debt is tax-deductible.
Primary HELOC downsides include paying variable interest, reducing your home equity, and risking foreclosure if you’re unable to repay it.
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: [email protected] or leave a voicemail: (302) 364-0308.

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910. Laura reviews what happens to your assets and debts after your death, depending on your estate, marital status, and home state. This episode originally ran in March of 2025.

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: [email protected] or leave a voicemail: (302) 364-0308.

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Transcripts available at QuickandDirtyTips.com.
Email: [email protected] or leave a voicemail: (302) 364-0308.


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1018. Do you have multiple retirement plans and are unsure how they fit together? Laura answers a listener’s question about having a 403(b) and a 457 plan at work, and a potential second job with a 401(a). Knowing the rules of various retirement plans helps you take full advantage of them and avoid potential mistakes and penalties.

Key takeaways
The names of workplace retirement plans come from the sections of the Internal Revenue Code that govern them.
Plans from different sections of the tax code operate independently, allowing you to double or triple-dip maximum contributions.
Plans from the same section of the tax code, such as a 401(k) and a 403(b), are subject to one shared annual contribution limit.
A 403(b) can be offered by public schools, hospitals, and non-profits; it allows an extra catch-up contribution for long-term employees.
A 457 plan has different types of accounts, but the governmental 457(b) is the most common. It allows an extra catch-up contribution and no early withdrawal penalties.
A 401(a) is typically offered by government agencies, schools, and non-profits. It usually has mandatory participation and a high annual contribution limit.

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1017. If you think that you must have a cushy job to access a retirement plan, you’re mistaken. There are excellent retirement accounts for the self-employed or those running a small business. Laura reviews the rules, pros, and cons of different retirement plans you might choose based on your income, business size, and financial goals.
Key Takeaways:
Whether your employer doesn’t offer a retirement plan or you’re self-employed, you can save for retirement using one or more tax-advantaged accounts.
Anyone with earned income qualifies for a traditional IRA, making it an excellent option for investing on a pre-tax basis.
If you have earned income that’s less than an annual threshold, you qualify for a Roth IRA, which gives you tax-free income in retirement.
If you have income from a business with no employees, other than a spouse, you qualify for a solo 401(k), which offers the highest contribution limits.
If you have income from a business with or without employees, you qualify for a SEP-IRA.

Upcoming Wedding Series: 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: [email protected] or leave a voicemail: (302) 364-0308.

Discover more from Money Girl!
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Transcripts available at QuickandDirtyTips.com.
Email: [email protected] or leave a voicemail: (302) 364-0308.
Hosted on Acast. See acast.com/privacy for more information.

1016. Are you concerned about affording the future cost of long-term care (LTC), especially with inflation and rising healthcare costs? Laura answers a listener’s question about buying LTC insurance or investing for retirement. You’ll learn how different LTC products and services work and their pros and cons for those with different budgets and goals.

Key takeaways:
Traditional long-term care insurance is best for people in relatively good health with sufficient assets and retirement savings to protect, but you don’t get payments back if you never need covered care.
Various hybrid products, such as life insurance and annuities, can include LTC benefits and accrue value you can pass to your heirs, but at a higher cost than traditional LTC insurance.
Using personal savings or home equity may be an option to pay for LTC if you have a high net worth and are comfortable self-insuring.
Medicaid is the largest single payer of nursing home care in the U.S. for those with low assets, such as a net worth below $2,000, or other eligibility requirements.
Veterans may be eligible for specific LTC benefits that provide a monthly stipend for care at home or in a facility.

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: [email protected] or leave a voicemail: (302) 364-0308.

Money Girl is a Quick and Dirty Tips Podcast, hosted by Laura Adams.
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