Ask Terry Archives

Hi Terry I paid cash for my house and I have a financial planner,he told me to take out a mortgage because interest rates are so low that the loan would make me money.Is this a good idea,kinda like not having a house payment but no deductions at tax time either. Thanks Terry Says:  Well,…

My husband and I are retired and have a rental condo unit that we would like to unload. It has become increasing difficult to keep it rented and the mortgage is upside down. We are not trying to ruin our years of good credit and it was suggested that a Short Sale might be the…

I am 53 years old and am closing my IRA so I can move to the Philippines. Can I take my full amount approximently $100,000 what taxes will i have to pay Terry Says:  Do you know that you don't have to close the account.  Instead, you could continue to let it grow tax-deferred.  You…

I have MS and unable to get Long Term Care Insurance due to my illness. Every advertisement I have seen for this type of insurance ask three questions; one being" do you currently have a neurological disorder/disease" or something like that. In other words we won't offer you this insurance. Terry Says:  Yes, you're right…

Terry, I do not have a question, just a comment on your article on planning for the future of a special needs child. Thank you for bringing up this subject of which many parents are very unaware of the consequences of leaving their estate to a child with special needs. My husband and I set…

We want to give 10 thousand dollars to our daughter to purchase a home. Is a gift tax free and how do we get information on how to do this. Terry Says:  Yes, you can give any amount, at any time, to any person -- without tax consequences. ( If you are very wealthy and have…

Why aren't the citizens of illinois clamoring for jail terms for the filthy, deceitful legislators who basically looted the state's pension funds and indebted every illinois citizen to $20,000.00 in debt? Terry Says:  I don't know.  They're easy to find.  A lot of them are still down in Springfield continuing their deceitful ways in the…

Are you serious about buying gold coins/bullion and putting it in a bank vault? What if it's a long holiday weekend and you need your gold NOW but can't get it out? What if your bank fails and is seized by Federal regulators? Do you really think you're getting into that vault? Remember, if you…

Hi Terry, What is your recommendation for professional assistance regarding unpaid federal income tax (large amount/multiple years) -- I see commercials to have a 'deal' with the IRS, but don't know if they are scams... Also, can bankruptcy be used for discharge of federal or state tax debts? I do also have consumer debt, accrued…

My financial advisor put 300000 dollars of my retirement money into a variable annunity , should I not have been asked if I wanted to purchase an annunity , after doing research on annuities feeling like he had his best interest before mine . Can I do anything about this to recover my investment without…

Hi Terry, I am an older Veteran who served in the military in the late 60's, Do I qualify for the interest rate that you were talking about this morning on WGN News? I did not hear all that you said. Please get back to me ASAP. Thank you, Terry Says:  Yes -- if you…

When our daughter was in college, we made her an authorized user on our major credit card for emergency purposes. Now she is 26, working full time and engaged to be married this summer. She has applied for her own credit card, but has been denied because the credit limit on our card is too…

My son has a home. He is a desert storm vet. He has been able to get his main motgage rate reduced. His second mortgage they have not been able to reduct the rate. It was one of those " downpayment loans? They are chargeing him alsmost 10%. Do you have any suggestions? Terry Says: …

Can you explain why it's better to pay taxes from IRA withdrawals with post-taxed money (i.e. savings accts, CDs, non-IRA mutual funds, stocks, Roth IRAs)? We have $270,000 in post-taxed money combined. This is our first year of being retired (husband 63, wife 61) and most of our investments are in IRAs ($1,180,000). We have…

I have bad credit due to medical bills and getting married in September. Will my credit have any impact on my soon to be husband? Terry Says:  Interesting, I just posted a response to a very similar question -- but from a man who plans to get married.  First, I encourage you to go to…

My husband and I have been customers of this person for about 20 years and we have done well by him. Now, instead of calling his clients each time he wants to suggest a trade, he wants to be able to act quickly without consulting us, earning a percentage of our profits, no longer charging…

I am taking my RMD but at present I (my wife and I) are not in immediate need of the money. Options are pay down a home equity loan which we pay 3% on, reinvest the money in a mutual fund (which means eventually we pay taxes twice - once on the RMD and the…

if I marry someone who is filing for bankruptcy- does her bankruptcy affect my credit rating? Terry Says:  It will -- as soon as you do anything jointly -- even a little a commitment as both signing up for the same utility. And for sure if you sign for a mortgage.  In fact, with a…

I am 60 and leaving my company with a severance package. What are your thoughts on taking my pension payout as a lump sums vs. an annuity. Pension Options: (1) $945,000 lump sum (2) $60,000/yr. lifetime annuity (3) $472,500 lump sum plus $30,000/yr. lifetime What should I consider in making this choice? Terry Says:   Well,…

My daughter is getting married and they want to buy a house - first time home buyers - what mortgages are available to them for little to no down payment? They will be well qualified buyers (income/debt ratio) but have just a little money for a downpayment.  They are not veterans.  Where do they start?…