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.
T-Bills beat CDs
Update: 9/27 The Monday 26 week Treasury bill auction came in at an average rate of 3.98%, as estimated here. That's the yield you received if you ordered 26 week Treasury bills when this column was posted. The Fed continues to push interest rates higher – and that has the stock market in a tizzy...
Recession Prep
It’s time to stop debating the definition of recession and start preparing. We have had economic slowdown warnings from the Fed and economists and television financial pundits. And, if that wasn’t enough, last week’s announcement by Fedex that its shipments were slowing and that it expected a global recession certainly burst the optimists’ bubble. The..
Ready for RMDs
It’s time to start thinking about RMDs – those Required Minimum Distributions that you must take from your retirement plans every year, once you reach age 72. Of course, those withdrawals can be made at any time of the year – but many people leave it to the last minute, which could be an expensive..
What Happened to the Market?
What Happened? Hopes that we had seen "peak" inflation were dashed with today's release of Consumer Prices for last month. The "street" had been hoping for a slight decline of 0.1%. Instead it got a "slight" increase of 0.1%. And in that misplaced decimal, the truth about inflation was revealed: It's "sticky"! The "core" inflation..
Social Security — Trust but Verify
As millions of Baby Boomers make Social Security decisions, it’s every more important that they have reliable information about the impact of their choices. And the sad Savage truth is that in even straightforward situations they are unlikely to get the right answers from Social Security representatives. Take the actual case of a woman we..
Student Loan Forgiveness — And the Forgotten
The student loan $10,000 forgiveness has created a social debate over fairness and an economic debate over inflation. But there’s one large group of borrowers that has a well-deserved complaint. They are the people who have paid and paid on their loans over the years – but still have huge loan balances, some even greater..
Watch Your Credit
The good news is that inflation is abating. The bad news is that prices are still 8.5% higher than a year ago. And the scary news is that many consumers are dealing with rising prices by adding to their credit card debt. The proof is in the statistics. Outstanding credit card balances grew by $46..
Long Term Care Insurance — The Latest
The cost of long-term care (LTC) insurance is the price of peace of mind. It’s that simple. The price may be too high for many to pay. But before making that decision, you need to understand some creative strategies for buying LTC insurance that may make it more affordable. First, a review of the basics...
Off to College
If you’re one of the millions who will head off to college in the next few weeks, here’s some practical financial advice to make sure you get off to the right start. Eva Dodds is an accredited and experienced college adviser. Her company www.RootCollegeAdvising.com helps families start preparing for college well in advance, with advice..
I-Bonds: Everything You Must Know
In an era of low CD rates, I-bond rates are astounding – currently 9.62%! Interest rates on Series I bonds are adjusted every 6 months to reflect inflation. From May 1 through November 1st the Series I-bond interest rate is 9.62%! That rate will be paid on all I-bonds purchased during this period for the..
Alzheimer’s Costs: Prepare!
Confronting the possibilities that you or a loved one will one day suffer from dementia or Alzheimer’s is a prospect too terrible to consider. That’s why a new book “Don’t Let Dementia Steal Everything” by famed attorneys Kerry Peck (www.PeckRitchey.com) and Rick Law (www.LawElderLaw.com) is both compelling and frightening. More than 6 million Americans are..
Matching the Markets
The markets can’t seem to make up their mind about whether the greatest threat is inflation or recession. Commodity prices of everything from oil to copper and lumber have fallen sharply on fears of an economic slowdown in the United States. The 10-year Treasury note, on which mortgage rates are based, has fallen from 3.50%..
401k Shockers
Your second quarter 40lk retirement plan statement should arrive in the mail any day now. Be prepared for some big surprises. The Balance Shock Everyone starts by looking at their account balance. Be prepared. It will be dramatically lower -- especially when compared to your 2021 year-end valuation. The second quarter was one of the..
Is Housing Next?
The stock market has tumbled, and bitcoin has stumbled. But the one financial asset that has held up -- so far – is the price of the family home. In fact, in the last year the median home price. has risen 20.7%. Of course, the housing market was subsidized by very low fixed interest rates..
Crypto Losses
Crypto markets lost more than $100 billion in the volatile market activity in recent weeks. That brings the total market value loss in crypto to more than $1.3 trillion in the past 6 months! Headline declines in Bitcoin took the price of one coin from $64,000 at its peak to well under $20,000 per coin..
Get a Job — Now!
With inflation still growing, daily costs rising, and the stock market falling, retirees suddenly realize their plans could be upended. Younger families see the cost of food and fuel taking a bigger bite out of each paycheck, causing them to make tradeoffs in spending. Now there's concern about a recession on the horizon. This is..
Fixing Inflation
There is absolutely no doubt anymore. Inflation is deeply embedded in the economy. Today's report of inflation at 8.6% in May is the highest since 1981. The only question is what can be done about this punishing tax that hits hardest at low-income families and seniors on fixed incomes. What will it take – and..
How to Rollover
You worked so hard to accumulate all that money in your 40lk plan. And a huge bull market helped. But when you retire or move to a new job you might be much better off doing an IRA Rollover. The best reason to do a rollover is that the investment choices in 40l(k) plans --..
VA Mortgage Deal
The Memorial Day holiday weekend is a reminder to honor the service of our veterans. It is also a good time to take another look at VA mortgage loans. Now that rates are rising, VA loans have become even more attractive. If you ever served in the military and are considering buying – or refinancing..
Paying for College
The college acceptance letters have arrived, and many families now are facing the scramble to find money to pay for the dream that has landed in their child’s inbox. It’s an issue that should have been discussed many months ago. Most financial aid packages offered by colleges will leave families with sticker shock. But there..
