Money Tips: July
Brace Against Floods
Homeowners policies don’t cover floods. Even if you don’t live near water, think about purchasing a flood policy. Floods can spread, damaging homes miles away. And floods can occur anywhere it rains. In fact, more than 20% of flood claims are from low- or medium-risk areas. Flood coverage is provided by the National Flood Insurance Program through private insurers.
Cut Your Interest Rate While Serving
If you’re deployed or getting ready to deploy, you may get a break on your credit card interest rate. By law, credit card companies can’t charge active-duty members more than 6% interest on debt they accrued before joining the military, or being called to active duty from reserve status. To get this low rate, you must request the 6% APR in writing from the lender and include a copy of your orders.
Consider a Roth Conversion
If most of your retirement money is in traditional IRAs and/or employer plans that give you a tax break upfront, consider moving some of your money into a Roth IRA. Because qualified withdrawals from Roth IRAs are tax-free, having money in both traditional and Roth retirement accounts can give you more flexibility in managing your tax burden during retirement.
This content is provided courtesy of USAA.