Ask Terry Archives

I recieve Social Security Disability,.I applied for Medicaid from the State of Illinois and I was working a part-time job which I no longer have. I keep recieving bills from a debt collector for the medical bills, which I can't pay until I'm released from the docter to go back to work. What do I…

Instead of cash gifts for our grandchildren, we are considering savings bonds, in order to encourage them to save money. We recently read that Terry does not recommend government savings bonds. What are the alternatives to these bonds? Thank you. Terry Says:  Sorry to say that Series EE and I bonds are no longer a…

Would you be interested in seeing a copy of the latest missive from my Chase/Amazon Rewards credit card folks where they are changing the terms on the account to even more onerous set of terms e.g. the APR is going from 23.24% to 24.99%? There are four other changes equally onerous. I have no idea…

I have $30,000 HELOC I have no other debt I make $90,000 a year I am 55 years old I have $70,000 in 401(k) I have no savings liquid do I start saving 3 to 6 months emergency savings now and start investing 15% of my income now or do I hold off and Pay…

Do I still need disability insurance? I can afford it. I am a 61 yr. old dentist who hopes to work until age 67. My Ameriprise Goal Tracking Review shows that I can retire at age 64.5 in a better position than the 2014 forecast. I have an ADA group plan costing $2,600/yr. for $4,000.00…

Where is the best place to get free credit scores for the 3 services that do credit scores? Terry Says:  Well, there are several credit scores.  The most commonly used by banks and financial institutions to grant loans is likely one of many versions of the FICO score (that stands for Fair Isaac Co, the…

Hi Terry--Right now, my husband & I have between $40-45,000 in credit card bills. Between us, we bring home over $4700 a month. We are not late or behind in any payments, but just can't seem to get ahead. Do you know or recommend a bank or other outlet that still gives personal loans. I…

We moved to Chgo area in 2012--still have our Ohio advisor--wouldn't it better to have an advisor that you could visit regularly--I feel disconnected Terry Says:  Yes, if you feel "disconnected" it's time to shop around for someone whom you can visit with on a regular basis.   It's not just the geographical distance that matters. …

With savings accounts not earning much interest, I'd like to get your opinion on what is best to do with funds that need to be accessible in the short term, for example, an emergency fund, savings for a down payment in the very near future, etc. Where can I put this money so it will…

Hi Terry, Is it advisable to take money from our savings to pay off credit card debt? Thanks! Terry Says:  Let's make this simple:  What interest rate are you earning on your savings? // What interest rate are you paying on your credit card debt?  I'm pretty sure the answer will be obvious! You never…

We have looked into 1. a CFP who has a small hand-picked client base, affiliated with Schwab, makes things understandable, but is going to cost 1% commission annually 2. our credit union financial advisor (we are meeting with him next week so we don't yet know what his plan would be) whose services are free…

Please advise me regarding the best procedure on selling a Time Share. Thank you. Terry Says:  There are literally dozens of websites that help you sell timeshares. All have fees.  Some are ripoffs. But would you believe that one of the most legitimate places to sell a time share is eBay!!  Here's the link to…

A recent article in the Sun Sentinel says inherited shares of stock have a new cost basis at date of death. My understanding is that the cost basis remains based upon the original purchase price. Could you please let me know where this information came from as I am holding some inherited shares to avoid…

I have 26 EE savings bonds that will not fully mature until 2017 thru 2030. Is it best to hold on to bonds until they no longer gain interest or is it ok to cash them in. Terry Says:  Don't cash them in until they stop accruing interest!  They likely have a high floor rate…

My son quit college and is now going into the military. I want to use his bright start money to help him pay off his student loan. Does that qualify as a qualified withdraw under the higher education act or would I be taxed to pay for his student loan? Terry Says:  I'm going to…

After working 20& yrs for State of Illinois, I am forced to retire at age 74. I have applied for Medicare B, but am confused. Should I keep my State HMO Insurance for free, but pay $79/mo for my wife, or apply for 1 of several Medicare HMO Advantage plans for $0 per month Terry…

My husband and I both have poor credit scores on the upper 500s. we have about 4 charge offs, three of which we've since paid and settled. Two we are working on. Is it best to file bankruptcy or keep paying on these cards that we can no longer afford because I lost my job…

I have balances on multiple cards that I'm making a little more than the minimum payment on. Which option would enable me to pay off the total amount faster: Putting the balances on one card or debt consolidation? Terry Says:  I'm not quite sure you know what you mean by "debt consolidation."  Most of the…

I just received a letter advising that I could remove the FHA mortgage insurance. The letter says my house is estimated at 276,954. 25,000 more than when I bought my home in 2013. I'm advised that my new payment could be 1,159.00. My question is, if I remove the FHA mortgage insurance, will this be…

Iam 68 retired work part time. Have 1000 month extra were should i invest in . thanks Mike Terry Says:  Assuming this is all the money you have in savings, leave it in the bank!