The week's best financial advice

Here are three of the week's top pieces of financial advice, gathered from around the web:

Facebook's lending plans

Who your Facebook friends are could soon determine your creditworthiness, said Susie Cagle at Pacific Standard. Facebook recently filed a patent for a tool that would enable lenders to use the credit ratings of your Facebook friends as a factor when deciding whether or not to make a loan. That means "you could be denied a loan simply because your friends have defaulted on theirs." The tool tracks how users are networked together, based on evidence that "shows we're more likely to seek out friends who are like ourselves." But the fear is that such technology could be used to make discriminatory lending decisions. Nor is the data foolproof, since networks are "clogged" with exes, old co-workers, and people we've met once or not at all. The consequences of approving loans via Facebook could be "completely unpredictable."

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Tax tips for inherited 401(k)s

Inheriting a retirement account from anyone but a spouse used to come with a substantial all-at-once tax hit, said Bill Bischoff at MarketWatch. Current rules now allow beneficiaries a way to defer taxes by rolling over the distribution into an IRA. "But you must follow the proper procedure to get this taxpayer-friendly outcome." That means setting up an IRA specifically to receive an inherited retirement plan's distribution. This must be accomplished by a direct trustee-to-trustee transfer of the funds; a check can't be made out to you personally. Doing this, "you can effectively accomplish a tax-free rollover." Once the money is in the receiving IRA, you also must start taking the required minimum withdrawals each year.

Downsizing for retirement

"A smaller home can cut your costs and your cares," said Cybele Weisser at Money. Among retirees who move, nearly half opt for a smaller place. They should do their due diligence first. Moving costs, including broker fees, can add up to 10 percent of the price of an old home. Depending on where they move, tax bills may shrink, but home insurance premiums could grow. Condos are generally cheaper than single-family homes, but come with maintenance fees and homeowners association rules. Renting is also an option, especially if retirees want to add the proceeds of a home sale to their retirement portfolio. It's also a good idea to move sooner rather than later. It's easier to downsize in your 60s than in your 80s.