Ask Terry Archives

I am 54 yo and retired. My husband passed away and his death benefits support me. When I turn 55 I can start collecting my pension also, of an additional $909 monthly. Do I collect this now or wait. I do not NEED the money, but doing the math. At 65 yo I will have…

I can draw out 10 percent of the annuity yearly or 20 percent for the first time on a withdrawal. I don't need the money but I am 67 with health issues and would like to put money from the annuity into an investment that is somewhat safe. By doing this I know that I…

My husband in his mid 80s has a long term care policy that he has had since 2007. In retrospect, because he was denied by other companies, he jumped at a plan through Mutual of Omaha. Monthly premiums are in the $250.00 range. Except for spinal stenosis, he is in good health. We recently learned…

I am a 78 year old woman, fully employed, receiving widow's pension from social security. Are my social security benefits taxable? Terry Says:  That depends on your other income.  Here is a link to the specific page at the Social Security website that gives details. But basically if your "combined income" -- which includes income…

I live in Michigan, am 82 years old and my husband passed away a year ago. I have a question on a life insurance policy and what would happen if I had to apply for medicaid for nursing home care. I am the policy holder of a $30,000.00 policy that was taken out in 1998…

Hi Terry I was caught in the housing market crash of 2008 & had to file bankruptcy to save my home & was given a loan modif. Which has helped my int. Rate was at 2% until last year now at 3% & wil finish at 4% Aug.2016 I have always had good credit &…

My daughter, in her 20s, just got hired as a police officer and is offered a 457 deferred compensation plan by ICMA-RC. There is no matching. Should she invest in their IRA or Roth IRA which allows a max of around $15,000 or invest on her own with an IRA or Roth? I realize that…

Can a parent set up a Roth IRA for an adult child who is jobless? Terry Says:  Contributions to a Roth IRA can only be made out of "earned income" -- from work!  It doesn't matter who makes the contribution, but the amount can be up to $5,500 for a person under age 50 --…

Hi Terry! I'm thinking of renting out my condo in Chicago. I was wondering about the tax implications or any other type of fees I would have to pay associate with renting. I definitely will be able to rent it for more than my monthly mortgage by about at least $400 or $500. Thank you!…

I listened to you today on WGN. You mentioned a sight where I could find information on refinancing parent PLUS loan at a more reasonable interest. I was driving and couldn't write it down. What is that sight? Thank you Terry Says:  Yes, go to www.SoFi.com.  I've written about them before.   SoFi stands for Social…

Terry, I enjoyed your informative article dated 11-22-15 re "...cashing in savings bonds." In addition to the federal income tax on the interest upon maturity, is there a late penalty fee (or worse) from the IRS if the EE bonds are misplaced and then found and subsequently redeemed in year 31 or 32? In such…

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"?…