Ask Terry Archives

Hi Terry, I'm confused by your recent answer to the question whether I Bonds are good inflation protection. You said to avoid them because there was a change to the interest calculation. What changed? I can find no reference to any changes other than the usual twice-yearly setting of fixed and variable rate components. Thanks.

How do financial advisors make money on accounts, and how much?

Hello Terry, I am here in USA on a work visa (H1) and am waiting for my (and for my daughter's) green-card to arrive, which will take several more years. I have a sodaughtern (who is my dependent and hence on H4 visa) who is a Cupertino Middle School,California. I have stayed in California state…

Has it been passed into law that the standard deduction on the IRS form will be doubled for the 2018 tax year?

I worked for a company with an Employee Stock Purchase Program. I have since left the employ of said company and it seems I must liquidate or transfer the stock I own. I was hoping to transfer the stocks (instead of liquidate) into a ROTH IRA I had previously created several years ago. I am…

Dear Terry, I've read that iBonds from the US Treasury are a great investment because they automatically adjust for inflation.Is this true,and what do you think about them? Thank you for your advice through the years!

Hello Terry. Actually, I have 2 questions. Question #1: I don't think I've heard anything about the standard deduction of $24,000 married filing jointly and home interest rates. For example, a couple could buy a house and have $1,200 interest per month = $14,400 interest deduction per year. If they don't have too many other…

Hi Tarry, I read your article in the UT-SD today about HEloc interest deductability. If my HELOC was originated and has principal amount was 65k, will that interest be deductable under new tax law regardless of how the money is used? thanks

Will Social Security be taxed the same way in 2018 as it has been taxed in prior years?

Here I am again asking a question for my niece. One of her daughters graduated Willowbrook High School in late May of 2017. She turned 19 in October of 2017. She meets the IRS definition of full-time student (“A full-time student is one who is enrolled for some part of five calendar months for the…

We are both retired and have a comfortable income from pensions and my wifes SS, at present I'm not collecting my SS. We have a sizeable investment with a financial advisor which at this time we do not take any withdrawls from, I'm calling it legacy money at this point. In my wife's portion which…

Hello Terry, How should someone balance saving for retirement (for me, 30-35 years from now) versus saving for medium-term goals like a house downpayment? I'm saving about 22% of my gross income for retirement by maxing out my 401k and IRA contributions, and am fortunate enough to be able to put money into taxable savings…

Line of credit taken out in 2015 used for various reasons including roofing, can I still deduct the interest on my 2018 taxes?

I've been using for the last three years both a Robo investment company (.25%) and a % fee-based financial adviser (1.5%) to manage separate retirement accounts. Both fee structures (shown) are based on a % of total funds managed. Is it possible, or advisable) to compare the net after fee returns of one account to…

Can you provide a safe website to order a free credit report? I am very concerned I will give sensitive information to a scammer. My score recently decreased for no reason. Thank you.

Good Morning Ms Savage, I checked the IRS withholding calculator, based on your recent column in the Chicago Tribune, and I plugged in my numbers from last year. Guess what? My taxes are going up! Maybe you could run some scenarios and print the results in another column. I would be happy to share my…

Hi Terry! After talking with way too many 'professional planners' who don't seem to get what I'm talking about, my best friend suggested I contact you. (best idea she's had in a while.) Here's my situation: I'm married to a great guy who is 10 years younger than me. He works full time. I work…

Are there any investments protected from creditors like mortgagor? I heard on radio show that there are some annuities protected from creditors.

Hi Terry, I am 62 years young and my husband is almost 57. He has been with AT & T for 30 years this month. Our original financial adviser was from Edward Jones but he moved so we were referred to Baird by our accountant & we transferred to them late last year. I don't…

Our financial advisor is recommending that my husband and I move $250,000.00 from our mutual fund account and put it in to a 7-year annuity at 6% due to possible impeachment, etc. There is currently $326,000.00 in the fund. We also have a good amount in IRA's, Traditional and Roth. My thought is to keep…