US VP Candidate Tim Walz Broke His Retirement Nest Egg To Withdraw $135,000 For Daughter's College Education

Tim Walz, the US Vice Presidential candidate and current Minnesota Governor, has a diverse background in education, military service, and politics. Known for implementing progressive policies like free school meals and improved worker leave terms, he holds a master's degree in education leadership. While his fiscal policies have attracted support, his recent financial decisions, including withdrawing nearly $135,000 from a retirement account to fund his daughter's education, have sparked concerns about his personal financial acumen.

Financial experts have criticized Walz's decision to make an early withdrawal from his retirement account, which represented almost 10% of his estimated savings. This move is generally considered a significant mistake, as it could adversely affect his retirement goals by diminishing the benefits of compounding growth and incurring taxes and penalties. With changes in retirement funding dynamics and concerns over the stability of Social Security, Walz's choice could set a challenging precedent for many Americans.

Despite his controversial financial decision, Walz has declined pay raises, maintaining his current salary as Minnesota Governor, and is poised for a substantial income increase if elected Vice President in 2024. He and his wife earned nearly $300,000 in 2023, part of which came from pensions and annuities. While his diverse professional background may provide him with a steady income stream in retirement, financial advisors warn against using retirement funds for non-retirement expenses due to the potential long-term impact on financial independence. (Full story)

A 75-year-old man living in an assisted living facility expected to receive nearly $146,000 from his late mother's estate after the family sold her home for $600,000. However, his inheritance was reduced by $20,000 due to a loan he took from his mother in 1996, of which he only repaid $5,000. The will explicitly mentions this deduction, supported by a letter from 1996 stating he had not repaid the loan. The man, now in poor health and dependent on Medicare, is considering amending his mother's old tax returns to challenge the deduction, but the IRS may classify the loan as a gift, complicating his efforts. Although he could have repaid the remaining $15,000 over time, his failure to do so has strained family relationships, particularly with his sister, who served as his mother's power of attorney. (Full story)

Lana Del Rey, the acclaimed singer-songwriter known for hits like "Summertime Sadness," recently shared that she used her first significant paycheck to pay off $17,200 in credit card debt, a decision that marked a turning point in her journey to financial stability. Growing up in Lake Placid, New York, and later moving to New York City to study metaphysics, Del Rey took on various odd jobs found on Craigslist to make ends meet, including house painting and babysitting. Her financial struggles persisted for nearly a decade as she sang in bars and juggled low-paying jobs. Despite the hardships, Del Rey remained committed to her music career, ultimately achieving success with several Grammy nominations and a net worth now estimated at $30 million. Her story illustrates the importance of financial responsibility and perseverance, with strategies like the "snowball" and "avalanche" methods offering structured approaches to paying off debt. (Full story)

High interest rates and inflation from the US Federal Reserve's tightening campaign have led to more missed payments and rising debt levels, with average FICO credit scores declining for the first time in a decade. Credit scores, determined by factors like missed payments and credit utilization, are used by over 90% of lenders to assess creditworthiness. Strategies to improve your credit score include becoming an authorized user on someone else’s card, seeking higher credit limits, reporting rent payments to credit bureaus, and enrolling in credit builder programs like those offered by Credit Sesame. These methods can help enhance your credit profile without incurring additional costs, though some may take weeks or months to show results. (Full story)

Elon Musk took a playful jab at Taylor Swift after she endorsed Vice President Kamala Harris for the 2024 Presidential Election, responding to Swift's Instagram post—where she humorously called herself a "Childless Cat Lady"—with a cheeky comment on X (formerly Twitter) suggesting he would "give [her] a child and guard [her] cats with [his] life." Swift's endorsement, which opposed Musk's earlier support for Donald Trump, quickly sparked a mix of political debate and pop culture banter online. Swift encouraged voters to do their own research, while Trump criticized her endorsement, suggesting it could have market consequences. (Full story)