Dear Liz: Can you refer me to a financial advisor who can talk to me about ways to save money?I work a full-time office job, and I’m always worried that I’ll be homeless someday.
answer: Consulting with a financial professional can help you make a sound plan for your future, which in turn can ease your fears.
Let’s start with the employer. Some companies offer financial wellness programs that include one-on-one counseling. Some offer financial advice through 401(k) and other retirement plan providers.
Another option is a certified financial counselor. These experts offer advice on budgeting, debt, credit, retirement savings, and other money topics. They are fiduciaries, which means they must have your best interests first. Some companies are employed by credit unions or the military, while others offer a sliding scale. You can start your search from here.
Although the National Foundation for Credit Counseling primarily helps people pay off credit card debt, its member agencies also offer budget counseling. Budgeting tools can be found at .
Dear Liz: My wife and I are both well over 70 and receive Social Security. In addition to our Medicare Part B payments, we pay the IRMAA (Income Related Monthly Adjustment Amount) for Part B and Part D through deductions from our monthly checks. We received an annual notice from the Social Security Administration regarding a 2.8% cost of living increase for 2026. At the same time, Medicare deductibles were increased, ultimately increasing my wife’s Social Security by $20 a month and mine by $80. This is not at all consistent with the standard letter letter from the SSA that says COLAs help us maintain our living expenses. Was I just lucky that my monthly check from the government didn’t actually decrease?
answer: In short, yes.
Medical expenses and health insurance costs typically rise faster than the general inflation rate. Medicare costs are not increasing as rapidly as private insurance. However, it is still not uncommon for increases in Medicare premiums to offset increases in Social Security cost of living for the year.
Fortunately, there are other resources available to help you deal with inflation. IRMAA is a Medicare supplement that applies to people whose modified adjusted gross income exceeds $109,000 for singles and $218,000 for married couples filing jointly. The surcharge is determined by two years’ worth of income tax returns, so your 2026 IRMAA is based on your 2024 return.
Dear Liz: Your recent response to someone who gave you bad advice about closing a credit account was a real public service. Over the years, I have opened and closed many credit accounts. My credit card has only been closed once by the issuer for unusability, and there was no significant drop in my credit score. My actions never changed my score by more than a few points. It also never changed for more than a few months at a time. Misinformed statements like those made by that individual can confuse those who are new to the world of credit or how credit works.
answer: Before credit scoring, your ability to get a new loan or credit card could be affected by an indication on your credit report that your previous account was closed by an issuer. But now it doesn’t matter who closes your account, and there’s no need to add a note saying it was you who requested it. If you mishandle your account, it will be obvious from the missed payments that show up on your credit report (and factor into your score). If you handle your account responsibly, it will also show up in your report.
As I mentioned in a previous column, closing credit accounts can have a big impact on your score if you have a small number of accounts or if your credit is heavily blemished. Closing a card with a higher limit can lower your score more than closing a card with a lower limit.
However, if you have multiple credit accounts and have managed your credit responsibly, closing your accounts is unlikely to cause significant or permanent damage to your score.
Liz Weston, a certified financial planner, is a personal finance columnist. Questions can be directed to 3940 Laurel Canyon, No. 238, Studio City, CA 91604 or by using the “Contact” form below. .
