Ask Terry Archives

Is it better to have a one million dollar umbrella insurance policy or 2 separate auto and home insurance policies of a million dollars each?

Large mortgage holders seem to complain limit is being reduced from $1000K to $750K. No one mentions that they get such low interest rates that, in my mind, are being subsidized by savers, such as fixed income elderly who cannot risk another bust as in 2000 and 2008. They are getting 0 to 1% on…

Hi, I want to open a 529 plan for my 1 year old daughter. It would be nice to take advantage of the state tax deduction, especially with taxes having increased this year. However, I am weary of the fact that the revised Bright Start direct plan has no history and I know little about…

I'm 80 and retired. Is a Roth Ira a good place to put some of my savings and if so do I put it in before the end of the year this year or next year? Dan

In Oct you replied to my same question that 401 funds are chicken money funds and they are insurance company contracts. That's literally true.... but they are wrap contracts and they are backed by portfolios that last time in 2006-2009 were full of junk. I understand that mortgages from the agencies now have tiny down…

Why can't I move my IRA inheritance from my mother's financial investment company to my investment company without having to liquidate the monies first? This took the investments out of the market and I lost money. Thank you. Sandra Bushong

Do you have any resources to advise a new grad with a biz degree in Hospitality and a JD how to search for jobs and fill out online applications? Are there professionals who assist and advise with hunting for a job?

I have placed freezes with each of the 3 services. Do I need to extend these now as the 90 day period is coming close?

Hello, I saw you on the news a few months ago after the Equifax data breach. My life is a bit of an ongoing mess and admittedly, I am not a whiz when it come to finances so because I did not know what to do to address this, I have done nothing. My mom…

Your column today about College Illinois struck home. I have 2 kids, starting college in 2020 and 2022. I’ve paid for a full semester each and have a payment plan for four more semesters each Is it a good idea to keep paying in? Could we lose the full amount? I thought we would at…

hi Terry! thank you for your time. i heard you today on WGN Wintrust Lunch. i had a question regarding my divorce situation and the new tax code. i have been divorced since april 2011, with a review (and a revised amount) awarded as monthly unallocated support/maintenance in April 2016. my ex husband has been…

My friend who has an 8 mos. old baby wants to start a college saving plan. What's your recommendation? I see the Illinois Bright Start Program has improved greatly. Thank you in advance for your help. Vicky

Is there any advantage to paying my realestate taxes before Jan 1 ?

The other day on WGN radio I thought I heard you say that I cannot prepay now my Jan 2018 quarterly IL income tax payment so I can expense it on my 2017 federal taxes. I am confused why not. If I am a cash basis taxpayer why is that not a 2017 expense on…

Since the SALT deduction will be limited to $10,000 if I itemize for my 2018 federal taxes, I am considering prepaying my property taxes. I live in Cook County. Can I prepare a particular dollar amount (say $1,500) or do I have to prepay the full 1st installment? I didn't have my property tax PIN…

My wife and I enjoyed your talk at Northeastern University on Oct 24th. You have said not to invest in bonds for my chicken money, but does that also include, for example, the Vanguard Total Bond Market Index fund (VBTLX)? I have considered this for money to cover the next 2 to 9 years. Money…

Are there any benefits other than investment choices to keeping a large 401K balance at a former employer (at Empower Retirement) instead of a rollover to an IRA at a discount brokerage (Fidelity or Schwab)? Is there protection from creditors, law suit, or such difference? Does a 401K have RDM requirements at 70-1/2? Do RDM…

I'm attempting to refinance my mortgage and need to raise my score a few points to meet the required minimum. I was unemployed and had a credit card that was charged off in 2015 but the credit card company is still reporting a past due balance of $4K. The loan officer suggested negotiating a settlement…

Hi Terry, I'd like your opinion on which approach to managing ones retirement nest egg is better: creating buckets of money with safer holdings (e.g. money market, short term bonds) for near term distributions and riskier holdings (stock funds) for distributions in later years (e.g. bucket 1 is for years 1-5, bucket 2 is for…

Hello, I asked this question a month ago on this website and I am still waiting for advice. My husband and I are retired and have no debt. We purchased three whole life policies 28 years ago and we were promised at the time that the premiums would pay for themselves within 15 years or…