Terry Savage’s Archives
Below you will find the columns terry has written by date.
Below you will find the columns terry has written by date.
Know What You Own
Long ago, when Americans mostly owned stocks and mutual funds in accounts of retirement plans and IRAs, December was known as the tax-loss selling season. This was the practice of “harvesting” losses to offset gains, and a limited amount of ordinary income. But these days, the majority of individual investments are held in tax-sheltered retirement..
Know What You Own
Long ago, when Americans mostly owned stocks and mutual funds in accounts outside of retirement plans and IRAs, December was known as the tax-loss selling season. This was the practice of “harvesting” losses to offset gains, and a limited amount of ordinary income. But these days, the majority of individual investments are held in tax-sheltered..
Thanksgiving — and beyond
At this time of year the headlines are filled with “holiday shopping deals” as stores advertise the best prices on everything from clothing to electronics. Your in-box is filled with “flash sales” on brands you’ve shopped before. And personal finance columns remind you of the dangers of credit card debt, to be repaid with high..
Charity Contributions from IRA RMD
It’s the season of the year when thoughts turn to charitable gifts and IRA required minimum distributions. With deference to turkeys, this is a classic case of being able to kill two birds with one stone! Let me explain. You know you must take an RMD before year-end from all retirement accounts (except those created..
Social Security Horror Stories — The Book & Website
Social Security is clawing back $21.6 Billion in mistaken overpayments to elderly retirees and disabled people because the agency miscalculated benefits, often for decades! It could happen to you – or your parents. Social Security has unchecked power. If you don’t repay their mistakes, they simply stop sending your monthly benefit! I uncovered this story..
T-Bills beat CDs
U.S. Treasury Bill interest rates are soaring far higher than the comparable bank CDs. As of November 14, the yield on a 13 week (3 month)T-bill is 5.41%, and on a 26 week (6-month) Treasury bill is 5.45%. That's what you received if you participated in the weekly T-bill auction described below. It's easy (see..
I-Bond Rate Update (and some advice!)
Remember when you rushed to buy Series I bonds a year ago, before November 1, 2022, to get that astounding 9.62% rate? You did earn that rate – for the next 6 months. And then, as inflation dropped, rates for subsequent 6-month periods also declined. And if you purchased an I-bond a year ago at..
The Wizard of Fed
Every Fed meeting is second-guessed by the markets –and the latest is no exception. No one can deny the power of the Fed to impact the economy by increasing or cutting interest rates. But not even an informed group of experts can set the perfect rate to keep the economy moving on an even keel..
Disadvantages of Medicare Advantage
As Medicare open enrollment continues through December 7, it appears those media commercials for Advantage plans are working. Now, more than half of Medicare participants have left traditional Medicare plus supplements behind, lured by the enticements of “more benefits at lower monthly cost.” But before making the switch, you should understand the costs and restrictions..
Calculating your RMD
If you have a retirement account – and IRA, 40l(k), 403(b) or other “qualified” retirement account -- and you are, or have have reached, the age of 73 this calendar year, it is time to calculate and withdraw your Required Minimum Distribution or RMD. It’s actually a very simple process, but failure to calculate the..
College Application Time
High school seniors and their parents are thinking past Homecoming to CollegeGoing! This is the moment when families should start strategizing for college applications and financial aid. A quiet family discussion, and a meeting with the high school guidance office can avoid tears and recriminations later. The Money Discussion -- A Reality Check The starting..
Medicare Open Enrollment
Note: Updated to add the ONLY and BEST Medicare supplement plan for all NEW applicants: Plan G! It’s that time of year again, when seniors face the challenges of Open Enrollment in Medicare, starting October 15th. .These are the most consequential decisions seniors must make, not only because of the financial impact, but the impact..
Debt in Retirement
There’s a personal debt crisis coming. I see it in the posts on the “AskTerry “ section of my website, www.TerrySavage.com. These stories go beyond the frightening national statistics to reveal the human costs. Especially for seniors. Americans are now carrying more than $1 Trillion in credit card debt – a new record. And the..
Turning Points
Summer is over and autumn is here. You’re not surprised to see Halloween candy on the shelves of your local WalMart. Fall is just part of the cycle of nature, predictable in general — although we still may suffer with some high-temp days and nights. Summer is over. If we’re not surprised by the cycles..
Surviving a Recession
Will you be able to survive a recession? The odds are rising that a recession will arrive sooner rather than later. In fact, here are a few signs a recession could be just around the corner. • Credit Card Delinquencies Rising: Credit card debt in America has now topped $1 Trillion for the first time..
Resources for Seniors
Approximately 27% of U.S. adults aged 60 and older were living alone in 2020, according to the Pew Research Center – and that number is growing every day as Baby Boomers reach retirement age. There are so many resources available to seniors. But those living alone – or their adult children – might not know..
High Rates for How Long?
Do you have “chicken money” – money that you want to protect from risk? If so, it should be in short-term CDs, or money market accounts, or short term Treasury Bills – IOUs from the Federal government. Those are the safe places to stash your cash. When interest rates were so low just a few..
Medicaid Lost Insurance
How would it feel to suddenly lose your health insurance? Frightening? Vulnerable? Well, 4 million Americans, including families with small children, just faced that terrifying reality. All were on state Medicaid programs, many joining during the pandemic when they lost their jobs and their insurance coverage. Despite returning to work, they were allowed to stay..
Fast Money
Money if moving faster than ever, and that’s a good thing for businesses, consumers, and the entire economy. The Federal Reserve has created a new and instantaneous money transfer technology that will allow immediate receipt of payments, even over the weekend when the Fed’s current ACH transfer system is closed. It’s called FedNow. Let me..
What’s Your Score?
The United States’ credit standing was downgraded from AAA to AA+ by Fitch, one of the rating agencies. It was a very public slap in the face for the United States, but not the first time this has happened. In 2011, the S&P ratings agency also downgraded the country to AA+. Since then, America has..
