Where to find help with managing your finances

Dear Liz: I am a mid-30s single woman who needs accountability in managing my finances and paying down debt. I have about $7,000 in credit card debt and $9,000 in student loans and I earn $55,000 a year. I feel as though I may have the financial means to do this but require a knowledgeable, structured approach. I’d like to work with someone to set up a plan and help me stay on track with it. I’ve considered trying LearnVest as well as smaller privately owned financial planning companies and a financial coach. Do you have any recommendations for finding assistance that could best suit my needs? Does what I’m looking for even exist?

Answer: It’s not always easy to find a fee-only financial planner who will help with budgeting and debt repayment. Many advisors cater to high net worth individuals who typically don’t have the same cash-flow issues as middle Americans.

The Garrett Planning Network offers referrals to fee-only planners who charge by the hour at www.garrettplanningnetwork.com. These advisors have the certified financial planner credential and, unlike many other fee-only planners, don’t have minimum asset requirements for new clients. You can interview a few prospects by phone to get an idea of the cost, but expect to spend at least a few hundred dollars to get started and then hourly fees for ongoing help.

If you’re OK not meeting with your advisor in person, LearnVest offers email access to a dedicated advisor who is either a certified financial planner or a registered investment advisor representative. For a $299 setup fee and a $19 monthly fee, you’ll get a customized financial plan as well as step-by-step instructions for implementing it.

Another option to consider is a nonprofit credit counselor. These agencies offer debt management plans for those who struggle to pay their credit card bills, but many also offer budgeting classes and financial coaching. You can get referrals from the National Foundation for Credit Counseling at www.nfcc.org. Your initial meeting with a counselor will be free. If you opt for a debt repayment program, the enrollment cost is capped at $75 and the monthly fee at $50, although many agencies charge less.

Sheltering home sale profits

Dear Liz: I understand that the profit realized on the sale of a home is not subject to tax, as long as that money is reinvested in another home. What if the couple divorces before or after the sale? If they split the profit from the sale and one or both put those funds into another house as single buyers, is each exempt from the tax? Does the fact that both are in their 70s have any effect on this matter?

Answer: Your information about home sale profits is about 20 years out of date. In 1997, Congress changed the law that once allowed people 55 and older to roll up to $125,000 of home sale profits into another home tax-free. That was a one-time tax break.

Now you can shelter up to $250,000 per person in home sale profits before owing any tax, and you can use the tax break repeatedly. You have to live in the home for at least two of the previous five years to qualify for the exemption.

Divorce can change your tax situation dramatically, and you don’t want to make decisions based on obsolete information. Please consult a tax professional to make sure you understand all of the implications of your split.

Remarrying late in life

Dear Liz: This is regarding the letter from the children worried about their widowed father remarrying. My father remarried a year after my mother died. He was 86. His wife and her family gave him love, care and companionship until his death at 93. I gained a wonderful new family whom I love. Once my dad asked how I would feel if he included his wife in his will. My response was that it was his money and he should do whatever he wanted. He raised me, sent me to college and was a kind and caring person. He owed me nothing else.

Answer: Thank you for sharing your positive experience with your stepmother and her family. Late-in-life companionship can be a real blessing.

Unfortunately, some predators target lonely older people and isolate them from their families as a way to get control of their finances. The predator paints the children’s attempts to intervene as “proof” of their greed. The original letter writers had seen this scenario play out in other families and hoped to avoid it in their own.

Liz Weston, certified financial planner, is a personal finance columnist for NerdWallet. Questions may be sent to her at 3940 Laurel Canyon, No. 238, Studio City, CA 91604, or by using the “Contact” form at asklizweston.com. Distributed by No More Red Inc.