Ask Terry Archives

My wife and I are both retired. I am taking my RMD dollars as required. We have excess dollars as our home is paid for and no major debt except for a home equity loan that we pay 3% on. If we reinvest the RMD dollars we can are going to end up paying taxes…

I have been researching safer (than stocks) investment options such as indexed annuities and commercial mortgage bridge loans. Annuities are safe but the surrender charges and withdrawal limits concern me. There is not much information (or history) on the bridge loans although the investment period is limited to a year and the interest is tempting…

We have $100,000 in college loan debt. Where can we get the best interest to pay this off? Also, would you recommend using our home equity line to pay the loan since the interest rate is lower Thanks Terry Says:  The first question is: who is "we"?  Is this a loan YOU (and your spouse)…

Where or how can I get a copy of your 5 Things to know about mortgage documents that I can email directly to my Buyers? It is simple and easy for anyone to understand. Thank you, Terry Says:  Go to my website, www.terrysavage.com, and click on the column archives -- the green box on the…

If I borrow, say $50,000 for 15 years at 4.74%, what makes for the quicker payoff? Paying monthly but adding approximately $122 to the payment to make it an even $500 per month rather than $388 or making twice monthly payments of $250 each? I can't find a loan calculator that shows the difference of…

We own a home around built around 1984, 2,900 sq. ft. We pay 7.5% interest (we had bad credit when we bought the house 13 years ago). My husband is 73-/12 still working. He has no desire to fix the necessary things to update the home, nor any plans to. It is falling apart around…

What is your opinion of indexed universal life as part of a retirement strategy Terry Says:  Honestly, I think it stinks on all counts -- as a retirement strategy, as an insurance policy, and as an investment.

Hi Terry I'm in the market of buying a house. I have been preapproved of a purchase price of 250,000. I have in savings around 57,000. Here is my quetion I would like to use all that for my down payment ....I would like to that a loan from my 401k at work to pay…

In your recent column on "5 kinds of insurance needed", under umbrella coverage,you stated ones requirement to have the "maximum underlying coverage" on the residence and auto policies." I have a 1 M umbrella from Farmers (for $156 annually) but do not understand how to evaluate "maximum underlying coverage" on the home and auto policies!…

Terry, I am 67 want to pay off mortgage with a IRA Matured CD. Do I have to pay taxes on that amount as taxable income? Terry Says:  When you withdraw the money from the IRA you must pay ordinary income taxes on all money withdrawn.  That assumes it was a traditional IRA and that…

I have 2 AT&T stocks from NY gifted to me from 1967 and 1968. How can I find out what they are worth and what is required to cash them in? Terry Says:  OK, this is going to be complicated because, of course, that original ATT stock was divided into five "baby bell" companies, and…

Is it worth it? Terry Says:  Only if you are in good health -- and if you need the insurance proceeds to assist someone who is depending on your income.

Our assets are in both names (home, condo(investment), savings and checking accounts). I have an inherited annuity(husband beneficiary). My husband owns a commercial truck, the title is just in his name. Should we have a joint or individual trust? I have read that with joint trusts there could be capital gains and gift taxes, whereas…

I have EE savings bonds that matured in the years 2013 and 2014. You mentioned in your column in today's Baltimore Sun that taxes on these mature bonds must be paid during the maturity year. Recently, I realized that I did not report the mature bonds and am wondering if there is a penalty if…

Refinanced in 2013. Ocwen Mortgage bought the contract. They raised my monthly payment by $160 a month.said I was behind in escrow.Went from $1470 to $1634 a month.They said after a year my payment would go back to $1470.When they raised it , they said if I paid about $1150 that my payment would go…

Hi Terry I read the article printed on June 21, 2015. Sounds wonderful! I hope that some day my son will be employed, but what do we do if they dont have a job yet? His debt is overwhelming and we see no way out as of yet, anything you can recommend to take a…

Just read your column in today's Baltimore Sun. Don't some insurance companies allow the policyholder to name someone to be notified if the policy is in danger of lapsing? This could be especially useful for LTC insurance. Terry Says:  Yes, most companies offer this feature -- but it is also helpful to maintain a relationship…

Dear Terry, It appears that, according to an article in your column in the money section, I have a problem and need some serious advice. We have EE bonds, over 100,000 K, that matured years ago. We have left them sitting, since they are our best and safest investment, because we bought them when the…

My wife is owner of whole life policy and I am the insured. Will she have to cash the policy in for my medic aid qualification for nursing home if it should occur? Terry Says:  No, it is not your asset and will not be counted.

Terry, I am curious about what to do with money that I have in an employer (fire department) sponsored 457 account with Nationwide Retirement. I have about $220k in the account, but I cannot make additional contributions now that I am retired. I am 57 years old and I do not intend to collect until…