Ask Terry Archives

Would you please pass this advice on to our state politicians (Madigan). Terry Says: Thank you.  They don't seem to listen to common sense!

WHY DO YOU ALL ASSUME THAT A HELOC IS THE SECOND LOAN ON THE HOUSE. THE GOVERNMENT CONTINUES TO IGNORE THE MOST RESPONSIBLE PEOPLE, PEOPLE WHO ACTUALLY PAID OFF THEIR HOME AND THEN TOOK A HELOC OUT AND TEN YEARS LATER WHEN THEIR INCOME HAS DROPPED DUE TO RETIRING THEY CANNOT AFFORD THE HELOC RESET,…

Do all reverse ,mortgages have to be HUD or FHA approved Terry Says:  YES -- any reverse mortgage you want to take out must be FHA approved.  The FHA insurance protects the lender (in case you live too long and there is not enough equity when the house is sold to cover the withdrawals you…

Circa 2001, if you refinanced a student loan, the interest could no longer be taken as an income tax deduction. Has this changed? I did not see it as one of the things to know about refinancing student loans. Terry Says:  Frankly, I don't remember that provision -- and the current IRS guidance does not…

I'm 55+ and in the beginning stage of estate plan. What is the starting point. Do I need to contact an attorney or financial adviser to prepare a trust or will ? Thank you Terry ! Terry Says:  Yes, you absolutely MUST contact an attorney who specializes in estate planning.  Because so many of my…

Hi, Since I have been in my current position a year I can officially apply for other internal postings. For some reason I am feeling like if I do apply I maybe hurting feelings or I just don't want that stigma of "I took a chance on her, & she only stayed a year". Now,…

My mother passed away in 2011. Recently, I found a box of her papers that had been in my attic. Among the papers was a little book titled Record of All Family Insurance Policies. There are 6 policies listed for me, and several listed for my mother and father. I had no idea there were…

Is it better to take a lump sum RMD or take a monthly check? I will be 70 years old in October and will need to make a decision by April 1st. Terry Says:   Well, that depends on how you like the money coming in. If you get it all in one lump sum can you…

2 years ago I started taking the withdrawals. Fortunately I do not need it. Can it be reinvested? Can it be used to purchase other stocks, bonds, mutual etc? Or, should we keep it in a low interest bank account? Terry Says:  That's a lovely problem to have!  You can do anything you want with…

I am 63 years old and have lost my job. I like not working and want to make a go of early retirement. My health is OK but probably won't make it to 90. My wife has good genes and excellent health so a long life is probable. We have $850K in IRA/401K and about…

Dear Terry, I am not able to pay my student loan payments with Sallie Mae, not Naviant. I have been on forbearance a few times now. I owe about 80,000 dollars and Sallie Mae is not working with me to get an affordable pay back plan. I have tried to refinance my student loans with…

I want to refinance my mortgage so I can lower my payment and use that money to pay off other bills. I've seen on several mortgage lenders websites that I could also take some cash when I refinance and then I could pay back the mortgage and the cash I took over 30 years. Is…

My husband will be 72 in August and is now being required to take a mandatory withdrawal from his annuity. My question as this will also affect me next year is: What should we do with that money? Would a savings account, CD or money market or what be the best place for this money.…

Terry, we have an outstanding balance on our sons student loan of $86,000#. My husband is a retired firefighter from on the job disability. I've been retired for a year now. We are both 61 and 62 years old. He has always been in the construction business, and is currently a construction manager. We still…

Hi Terry, I am a 35 year old woman mother of two boys. I had a 401k with my first employer than another one with my most recent. I left the work force to stay at home and take care of my 6 year old kindergartener and rambunctious 2 year old. I have these two…

Great news today on the ability of students to refinance their loans! Have read through everything. My question is this: I own my home free & clear. I'm 60 years old, and contribute a good amount to my retirement account. Does it make sense for me to refinance my home, and allow my child to…

Where do I go to consolidate both federal and private college loans into one manageable loan. Terry Says:  Please read the column on top in the left column on the home page at www.terrysavage.com -- It explains fully.

I HAVE A SCHOOL LOAN FOR THE PAST 18 YEARS AT 7.5% AT ACS. IS THERE ANY WAY I COULD GET A CHEAPER LOAN. UNFORTUNATELY I HAD CONSOLIDATED WHEN I RECEIVED THE LOAN. EVIDENTLY I WAS YOUNG AND UNAWARE OF ANY ALTERNATIVES. Terry Says:  Ugh -- 18 years at 7.5%!  That is ugly.  And yes,…

IS A MAJORITY OF RETIREMENT FUNDS INVESTED IN FIDELITY TARGET DATE FUNDS A SAFE WAY TO PROTECT MY PORTFOLIO. IS THIS DIVERSIFIED ENOUGH? Terry Says:   It's a good start -- but it's not enough!  Here's a link to a column I recently wrote, that will explain the issue more fully.  Basically, a real discussion is…

my husband purchased a house using money from his investments to purchase a house in a real estate IRA??? We have owned the house and have collected some rent for 5 years. We are now nearing retirement - 62 and wondering what way to rollover the house - sell and not get penalized? or do…