Ask Terry Archives

Could you please elaborate a little more on your paragraph "take a portion of your rollover money", specifically regarding rmds? Thank you Sam

My wife (age 73) and I (soon to be 73) are in fairly good health (although my short term memory has declined). What would it cost to obtain Life/long term care insurance to cover $4000/month care costs? And, is it advisable at this point in our lives?

i am 84. Is that too old to get such a policy? if not, what companies, offer such policies and what sum of money would be required up front?

I received a letter that I opened a savings account at some credit union in Virginia (never been there).. I called there saying I didn't open anything and they had already locked the account and closed an attempt to open a credit card and savings account through them. They are investigating. I called Experian through…

My son's settlement was put into a special needs trust. The bank has been investing it in the stock market. Is this a smart way to manage his money? Thank you, Stephan Terry Says:  So, I'm assuming this settlement was the proceeds of a lawsuit.  The suit may have required that a bank manage the…

what is difference between fed direct subsidized loan and subsidized student loan Terry Says:   Current Federal student loans are all made directly from the Federal government. That changed about a decade ago.  The big difference is between subsidized student loans, which do not accrue interest while you are still in school, and un-subsidized loans which DO…

What are the pros and cons of placing a personal residence in a trust? Terry Says:  You titled your question IRREVOCABLE trust -- and you definitely don't want to do that!  (At least, not unless you are trying to transfer huge wealth, in which case you would have a tax advisor and not be writing…

I'm trying to contribute to my grandchildren's future college. I closed out Illinois Brightstart accounts because I became nervous about the reliability of the State of Illinois to provide future funding. I purchased blue-chip stocks that had been doing well for me, using custodial accounts. That stock has been distributed back to me due to…

Hi Terry, Do you think selling covered calls on stocks is a viable growth option? I am interested in doing this in a portion of my ROTH IRA portfolio to avoid the complex tax consequences that result from them. My research seems to prove them to be beneficial, but only in a non-taxable situation. Would…

During the year that I turn 70 1/2, does any withdrawal from an IRA count toward the MRD, or do I have to specify withdrawals as part of the MRD? Thanks, LB

your recommendations for my son re: pre-marriage & $$? We are pretty well off, he has no debt, & his indended has a lot of student loans & is still in school. Terry Says:  My best recommendation is to buy him a copy of The New Love Deal --(click on the link to go to…

WHICH ARE THE BEST STOCKS IN INDIA TO BUY NOW AT WHAT PRICE AND HOW LONG TO HOLD? Terry Says:  I must confess that I know absolutely nothing about stocks in India.  However, I have found the perfect website for you!  It is www.MutualFundIndia.com.  It provides lists and rankings of all funds that focus on…

I have a small(100k) 401k and will be 70 1/2 in a few years.Is there a way to give this money to my kids or either donate it before ir becomes taxable? txs, BB Terry Says:  When you are 70-1/2 you will be required to start taking Required Minimum Withdrawals.  Right now, you can withdraw…

Retired 4 months ago collect S S ,have Medicare and va health benefits,am in good health,should I still enrow in a Medicare part d or c ,and saved 620 401 k ,is 2000 a month a safe withdraw Terry Says:   OK, I appreciate the brevity of your question (!) but I would need a lot…

I asked a question of investing in silver bars or etf mutual fund Also going to a company like schwab in place of American fund as there charges are so high. Terry Says:  If you want to buy silver bars, go to a coin dealer who is registered with the American Numismatic Association at their…

I'm grandma owner/participant of my grandson's 529 plan. Should I transfer it to his parents 529 plan for him. Trying to avoid negative impact on his future federal aid application. He's 14, starts h/s this Aug. Straight A student. All his subjects are accelerated. Thank you very much. Their account is w/ Brightstart mine is…

I have a question on this. I have decided to take half of my divorce settlement 26k after a year separation and use it toward purchasing a home and the rest for cash reserves. I haven't worked for the past year to get our girls settled to the divorce and was primarily a stay at…

New to your site - What is Chicken Money? Terry Says:  Chicken money is money you simply cannot afford to lose!  So you don't take risks with it.  These days it's frustrating, since Chicken Money belongs in bank CDs, Treasury bills (www.TreasuryDirect.gov) and money market funds.  None pays very much!  But remember the mantra of…

This may be a study in frustration. I didn't find the site before I made a decision to annuitize 4 annuities amounting to some $400,000.00 because I am concerned about the stock market. I want to certain my grandchildren get the money I worked hard to accumulate The annuities will be paid 10 years certain…

Hi Terry, I wrote to you over a year ago in reference to my inability to get a credit card after some financial problems. At the time I was an American Express cardholder for over 30 years and had a Chase card, and a Capital One card. I lost them all but paid back the…