Ask Terry Archives

I have three NML insurance policies & all are paid up with quite high cash values, etc. I am retired & age 70.I have not paid any added premiums since it was paid up at age 65. I want to leave the proceeds to my 3 children when I die. Is NML a strong company…

This week you discussed life insurance. You were warning people about a certain type of policy that tends to be riskier, (NOT Term life or Whole life). Unfortunately, I needed to get out of the car and could not finish listening to you. What is the category of those risky insurance policies and why are…

I understand all of the hoopla about the billion dollar power ball lottery, the effect of taxes on winnings, etc. but I have a simple question regarding any sizeable lottery winnings. Let's say you win $10M and want the time to consult with various financial advisors before spending any of your winnings. So, you deposit…

I withdrew my money from my 403B account and my financial person turned it over to LPL to invest, but it continues to lose money. I don't need it right now, but I'm concerned that it is slowly disappearing! Where should the money be? Terry Says:  What?  You "withdrew"??   First, you can't "withdraw" unless you…

I have set up 529 plans with Brightstart in Illinois for two grandsons who live in Wisconsin. I see that you do not recommend Brightstart. Can I roll them over to another plan without incurring any costs or penalty, or am I stuck with Brightstart? Terry Says:  You can easily do a rollover.  I recommend…

My wife and I must start taking the RMD from our IRA's in calendar 2016. What's the best discipline to use? Should we use dollar-cost averaging and withdraw 1/12th of the 2016 RMD each month, or withdraw 1/4th each quarter or withdraw the entire amount at the beginning or end of 2016? Thanks for your…

Terry, First off, Happy New Year to you. The questions below are for my mother who doesn't have internet and has concerns about her Savings Bonds. 1. How do you cash in the Savings Bonds? 2. And when should you cash them in? May 2016 will be year 13. 3.Can she give them to her…

Terry What is your opinion of full service stock brokers like Edward Jones opposed to companies like Vanguard? Which is better? Terry Says:  Well, long, long ago I started my career as a stockbroker -- so I may be a bit biased!  I've always said that if you are getting good advice, it's worth paying…

My wife and I paid $45000 for our home and have made $50000 in improvements(let's assume they all qualify). Since we can sell our home without taxes on up to a $500000 profit is there any financial point in keeping these records, e.g. a $12000 addition. ? Terry Says:  Well, you probably asked the wrong…

What steps are needed to be taken by my daughter to put my living trust in effect after my death.....many years from now. Thank You Terry Says:  Yes, I hope it is many years from now!  If she is named as your successor trustee -- AND IF you retitled all your major assets (your house,…

Hi, is there any legitimate credit card offers for 0% balance transfers to move a high balance(more than $10,000) over to start paying down instead of just paying interest monthly? Terry Says:  Oh yes, there definitely are legitimate balance transfer opportunities -- IF your credit is good and you have been paying on time.  You'll…

We recently converted our universal whole life policies (which we had for 35 years) to whole life insurance. However, for the first time ever, we received forms to complete for tax withholding purposes. Apparently, the dividends earned (which we want reinvested in the policies) are taxable? Either our insurance representative is using the incorrect vehicle…

In 2014 I took money out of my Prudential IRA. Had some medical bills and had given my 2002 Ford Focus to my son. I needed a car and decided to take enough out to pay the med. bills and the car. Hated doing this but did not think it through. I was 64 at…

At what point do you stop needing life insurance. my term life just ran out. to renew it went from 350 a year to 5000 a year. i am 59 years old and my wife is 55 years old. house is paid off and so are my kids education bills. i have no debt whatsoever.…

advice please for starting a college savings program for Illinois colleges. this would be for use in the distant future Terry Says:  If you're a resident of Illinois, I would go to Vanguard.com and sign up for their plan, which has the lowest costs and top ratings from Morningstar.  Remember, you can save in any…

Hi - I'm trying to choose a certified financial planner who specializes in pre-retirement planning. I have two plans in place: long term care insurance and a deferred variable annuity (85K). I am currently teaching for another 9-10 years before I turn 69 so have the state pension as well (Illinois!) so want to receive…

How can I cut taxes on my IRA withdrawals ? How can I transfer money from a spouse's federal thrift savings into an IRA? Terry Says:  Oops, you can't "cut taxes" on IRA withdrawals; they are always considered ordinary income!  Are you asking how you can stay in a lower income tax bracket once you…

Terry, My daughter has a 529 pre paid plan that will pay for 120 credit hours. Her grandmother is the owner. The plan provider, College Illinois, told me that since her grandmother is the owner the income when paid out will not count against her. FAFSA tells me that it will. Can you help me?…

My daughter is 23 years old on 1/1/16 and can file her own FAFSA for '16-17 undergrad year, however we would still like to claim her on our 2015 tax return as a dependent. Is this legal? If so, how do we go about doing it? Terry Says: Interesting question -- and it forced me…

My daughter purchased a condo. Bank did a 80/20 mortgage. her 1st one is with the bank she uses and is at a fair percentage rate. But the second is much higher rate 8-9 %, they are out an foreign bank, Popular, and hard to get in touch with.. Can she renegotiate this loan? Or…