Ask Terry Archives

By Terry Savage

what to do with idle cash

Answered on March 20, 2016

I have cash which I will not be using for a long time. What do I do to make it grow? Terry Says:   What is a "long time" and how much are you willing to lose?  And what is your age -- and the likelihood that you might need it sooner than "a long time"?…

LONG TERM CARE INSURANCE — really?

Answered on March 12, 2016

My wife (66) and myself (72) do not have LTC insurance as we have always thought it better to save and invest for many purposes and LTC insurance always seemed expensive. Our house is paid for, we have 1.2 million in Vanguard 1 million in IBonds. Our regular income, including SS, my wife's retirement, my…

safe max cost of new home purchase

Answered on March 12, 2016

I am a newly retired teacher and am shopping for a new home for retirement. i am planning on paying cash.I have two accounts of 250,000 each,earning 1% interest, a 97000 annuity (through a fraternal organization)earning 4.5-5%., 7000 in stock, 20000 in bonds, and two smaller accounts of 15000 and 17000 each. I add 12000…

parent plus college loans

Answered on March 12, 2016

my son has college loans and I have 36,000 in Parent plus loans for him. Interest rates is 7.65. can we consolidate so all loans are under his name? or is there a way I can refinance them to get him a lower rate under my name? Terry Says:  Well, this is complex.  The PLUS…

CMS-500 Bill from Medicare

Answered on March 12, 2016

Terry, what is this CMS-500 form that my wife just received in the mail. I did a search on it and the explanation is not clear to me. All it focuses on is how to pay it. I am retired and receiving soc. SS benefits and have my part A and B card. My wife…

Chicago taxi medallion — I’m bankrupt!

Answered on March 08, 2016

Hi Terry First of all I like to thank you I often listen to you on radio and you discuss cab medallion situation. Ok my question is since Uber came to the city, our hard earn taxi medallion just became worthless. Once our medallion worth over $350000 and now no one will buy it for…

DEBT

Answered on March 07, 2016

I HAVE A BANK OF AMERICA CREDIT CARD DEBT OF $5,000, WHERE I KEEP TRANSFERRING MY BALANCE TO PAY ZERO INTERESTS . I HAVE BEEN MAKING PAYMENTS TO LOWER MT DEBT EVERY MONTH. I ALSO TOOK OUT A PERSONAL LOAN FROM DISCOVER OF $11,500 TO PAY OFF ANOTHER CREDIT CARD. I MAKE PAYMENTS OF $314.51…

Reverse Mortgage

Answered on March 07, 2016

thinking of reverse mortgage am 66 years old owe 40;000 home worth 125;000 any red flags I need to know Terry Says:  Here's a link to my most recent column on the subject.  I endorse reverse mortgages -- with some caveats.  Since they are expensive, you should plan to stay in the home for a…

Tax writeoff for health insurance?

Answered on March 07, 2016

Can I write off the cost of private health insurance on my tax return? Terry Says:  There is no simple answer to this question.   The first rule that might apply is the rule regarding all healthcare expenses, which can be deductible if they exceed, in total, 10 percent of your adjusted gross income.  However, there…

Long Term Care Insurance

Answered on March 06, 2016

Terry My husband and I recently met with our financial advisor to discuss long term care insurance. My husband is 61 and I am 60. The plan he chose for us is one with an available benefit of $360,000 each and a maximum monthly benefit of $8500. He also added a shared care and a…

refinancing mortgage in your sixties

Answered on March 05, 2016

Hi! My parents are 61 and 66 y.o. & are wondering if refinancing their mortgage is a good idea. They currently have a loan balance of about $177K for their home which, at most recent estimate, is valued at about $280K (so NOT underwater.) They live in a highly desired area north of Chgo. Mortgage…

Medicare supplement

Answered on March 04, 2016

Dear Terry, there has been some articles,blogs,etc.,concerning choosing part "G" instead of the more popular part "F". Cheaper premiums are said to offset the deductible costs of part "F". Do you see any caveat to this? Terry Says: Yes, there is a huge caveat:  With G you pay the deductibles on Part B yourself.   I…

debt counselor recommendation

Answered on March 04, 2016

Terry could you recommend a reputable group for our niece to discuss debt counseling. They are a year behind on their HOA payments and two years behind on their county real estate taxes. thank you Terry Says:  I always and ONLY recommend that National Foundation for Credit Counseling, with branches across the country.  You can…

homeowners insurance online comparisons?

Answered on March 04, 2016

Do you have a recommended site to shop for homeowners insurance? Terry Says:  There are actually a couple of sites that say they compare homeowners' insurance prices.  Perhaps the best known is Netquote.com.  They say they compare from Progressive, State Farm, eSureance (Allstate), and Liberty Mutual among others.  And you might use this as a starting…

Have a $80k stock loss carryover

Answered on March 04, 2016

I am 85 and have had this carryover for several years.( was higher some years ago) but currently can only deduct 3K per year. I want to sell a income property I own..will I be able to deduct the full 80K from the profit of that sale? I have rec'd conflicting answers from CPA's. Thank…

Does delaying Social Security pay off if I am retired with no Social Security wages?

Answered on March 04, 2016

I retired 20 months ago at age 63. My full retirement age is 66. I have not applied for Social Security benefits. My spouse is 10 years younger and still works. We live on her income and my non-retirement savings. In a recent column you referenced that delaying Social Security would significantly increase benefits. Since…

Credit Cards search

Answered on March 04, 2016

What web site or association can I go to to find a new low interest credit card. Terry Says:  Go to www.Bankrate.com and you can search for cards based on interest rates, annual fees, balance transfer offers, etc.  Here's a link to that page.

Series I Savings Bonds

Answered on March 02, 2016

Calculated Value of Your Savings Bonds (treasurydirect.gov/.SBC/Price) does not list the interest rate for Series I bonds anymore. Why? Thanks. Terry Says:  Here's a link to the page on Treasurydirect.gov that shows the interest rate for Series I bonds.

consolidate student loans?

Answered on March 02, 2016

HI, I want to consolidate my 6-figure student loans into a single fixed interest rate loan. I know of six banks / student loan refinance companies (SoFi, Earnest, etc.). My concerns are: 1. Are these companies reputable; 2.Are their any internet information sources that I can address to recommend specific ones; 3. As I'm not…

Home refinancing

Answered on March 02, 2016

Hello Terry, I recently lost my job and my husband and I decided that the best thing to do is to refinance our home which we purchased three years ago. Apparently, our home has increased its value around $80,000. We received a letter from a Mortgage company and gave them a call and information requested…

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