Ask Terry Archives

My parents r in their mid 80"s and have a reverse mortgage with little money left to use-they r concerned about what happens when the money runs out-how long will they b able to stay in the house and what if they cant pay the monthly fees? thanks Paula Terry Says:   If they took a…

Please let me know who the lender is that helped your dad with his reverse mortgage. Thanks, Sheila Terry Says:  Gosh it was so long ago, that I don't remember.  Go to www.ReverseMortgage.org to search out a RM lender in your area.

Terry, I recentley sold rental property, what can I do to keep from getting taxed on capital gains for the whole amount? Someone told me I could reinvest the money and not get taxed? How, in more land? Or could I put it in the market and not get taxed? Any suggestions would be helpful.…

I am a resident of Illinois and currently have a Bright Start direct-sold plan for my each of my kids. One is 12, the other is 14. They are both in age-based portfolios, and each account currently has about $74,000 in it. I know you not a fan of Bright Start and I'm considering rolling…

Hi Terry, I am a long time fan of yours and value your opinion. My husband and I are thinking about adding a fixed index annuity to our investment portfolio. We currently work with a fee based only financial adcisor who says annuities are bad. We have a diverse investment portfolio of about $557,000 and…

Can you give your opinion on so-called 770 accounts and what you think of them as an investment for retired individuals? Thanks.. Terry Says:   Do you think you've found the "golden goose" or the secrets of the very rich?? Think again!  This is just a twist on a very old tax provision (IRS Code 7702) that allows…

I have had a reverse mortgage for the past 8 years. Since that time the real estate value of my condominium has markedly decreased to the point where the amount I "owe" on the monthly reverse mortgage statement is more than the condominium is worth and that amount increases each month. What are my financial…

I'm 70 year old will investing my money in Ira with a lock in for 8 years be wise Terry Says:  Absolutely not.  I assume you're talking about some kind of annuity.  But you don't need an annuity for tax deferral.  Plus, you'll need some liquidity for Minimum Required Distributions.  Whoever is suggesting you lock…

I am stuck.I cant refinance my mortgage and home equity. That would be 280000. The bank said no.So should I pay off the equity first or save emergency fund 3to6months Terry Says:   OK, I obviously would need more details to give you a good answer.  In fact, let me direct you to people who can…

    Hi, Terry, I have a friend who is disabled. She is 53 yrs old, receiving Social Security disability payments, and on Medicare. For years, her husband's medical insurance from his employer was her primary insurance and Medicare was her secondary. Now her husband is unemployed, resulting in Medicare being primary and her husband's…

Hi Terry, I am almost 50, single with no children. I don't make a lot of money and have very little retirement saved, and I'm still paying student loans. I have no credit card debt but I do have a car note and rent. There is no question that I will have to work at…

I am over 65 years old and have still not written a will or made an estate plan. How do I find a competent estate planner to help with estate planning? I want to find someone that charges on the basis of their expertise and their time in completing a plan, not on a percentage…

Hi, Terry. I'm a 65 year-old retired Chicago school teacher receiving my pension and am on medicare. In a few months I will be 66 and will be able to start taking social security. As a public school teacher I am affected by the windfall elimination tax which cut my social security benefits in about…

My daughter just purchased a townhouse. The garage attached is 1 car with an apron on the outside. Is this considered a 2 car garage? The tax document stipulates a 2 car garage. Terry Says:  Oh, you're way out of my territory.  But it sounds like a mistake to me! I suggest you get an…

(Terry: I read your December 8, 2013 article on College Savings Plans in Illinois and I completely understand your position on the Bright START Savings Plan, however, is your position on the Bright DIRECTION Savings Plan the same? Terry Says:  Bright Direction is basically the same plan -- only sold by brokers, who receive a…

I have a coin that has parmelee matherton Mich on it iv look all over the web an can't find anything about it can u help me? Terry Says:   My coin experts are at Harlan J. Berk Ltd in Chicago.  You can call them at 312- 609-0016.  If they can't help you find its value,…

Do you still not recommend using the Illinois Bright Start program? Terry Says:  You can start a 529 savings/investment plan using any state's plan, and still use the money for college in any state.  There is only one reason to use the Bright Start Illinois plan, and that is because you get a deduction on your…

Does taking an IRA distribution count as income that might reduce my monthly social security payment? If so, when should I tell Soc. Sec. that I have 'made' this income, now or next April's tax filing? Should I make some payments to the IRS in anticipation of the future tax liabilities, say quarterly,as if self-…

Where to get a credit report that is secure? Terry Says:  There are several online sources of credit reports, but the ONLY place that allows you complete FREE access to your report, either online or via the mail. is www.AnnualCreditReport.com.

My question: I'm 71. I attempted to roll over the balance in my employer 401K account and was told I was too old (over 70 1/2) to roll my 401K over. Is this correct? If so, will I have to pay the taxes on the full amount in my 401K? Do you have a suggestion…