Ask Terry Archives

After a lifetime of saving, I have $300,000 in ''chicken money,'' other investments, and a pension. Like everyone, I am chasing higher CD rates. Should I take $100,000 and invest it in a five-year CD at 2 %? Interest rates are low and may not increase much. There is no immediate need for the money.…

Hello Terry, Read your book several years ago and followed your column back in Chicago when i was living there. Saw you on Etrade video conference which really was outstanding. What are your thoughts on taking money out of your 401k to start an annuity and why is this subject not offered or talked about…

I was born 6/1950. My husband was born 8/1947. He is presently working and not taking social security. Would it be beneficial to us if I were to draw on his social security now while he continues to work? Thank You Terry Says:  Special Note on March 28, 2016 -- That column is now posted…

Cannot remember which card you suggested to transfer existing debt and pay off in one year. Also, does it affect my credit rating to open another card? Should I close the previous card or keep it open and leave it a $0 balance? Thanks for your help. Terry Says:   Go to www.Bankrate.com and click on…

My wife and I, both in our late 60’s, have built a retirement nest egg, not huge, but comfortable. I am confident that, barring a health-care catastrophe, our funds will not run out before we do. My question relates to how we pass on what is left of our nest egg at our passing. The…

I owe a mortgage on the home I presently live in. I want to buy another home and to pay for it with a loan from my life insurance. I plan to pay back the life insurance when I sell my present home. Does this sound like a sane plan? If no, why not? Terry…

We just refinanced our home with a 30 year 2.99% rate. We owe $227,000.00. Our payment is $1700, but I pay an extra $800 for a total of & $2500. I was told the loan will be paid in 12 years. ( we tried to get a 15 year loan, but were rejected). I just…

We are retired( 69 & 71) living ok on social security. We are inheriting 65k. We have no debt. We do not trust the economic stability of our system. We are thinking of sum cash and the rest in gold. Is this a good or bad idea? Terry Says:  Well, that's a nice problem to…

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"?…

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…

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…

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…

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…

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…

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…

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…

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…

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…

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…

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…