Ask Terry Archives

What should I do with my savings in a few different banks now that I have retired. I do have a few annuities to compensate my living expenses per month. Terry Says:  I am about to post a column on "chicken money" -- money you can't afford to lose.   It should be up on my…

I am 64 years old and retired from the educational system. I receive a monthly pension from the California State Teachers' Retirement System. I would like to go back to work as a consultant in an unrelated field in the private sector and start a Roth IRA for myself. Can I do that and what…

Hi, Terry, My mom passed away in 2014 at the age of 91. Her home was the only asset she had. She and dad lived in the home for over 50 years. He passed in 2008. The home was sold for $85k in 2014 which was lower than our asking price (the home is in…

I have Edward Jones as a broker. I keep asking about Index fund, and he keeps steering me away from index funds. Should I purchase index funds and if so, should I buy from him or go direst to someone like Vanguard. Terry Says:  If you go to a traditional brokerage firm like Edward Jones,…

In your "5 easy moves to fast-track your finances" article, under the "Check your credit" sub-heading, you wrote, in parentheses: 'Although you might want to do that, (...get a free credit report from each of the three major credit bureaus without signing up for commercial watch services), if you don't want to put a "freeze"…

The single-family house (located in Cook County) is deeded to my mother's estate (my mother is now deceased). The house was vacant during 2014 but my son is now leasing the house (effective January 1, 2015). Can we apply for any exemptions for either 2014 or 2015? Terry Says:  Please contact my Chicago property tax…

Hi Terry, My question to you is, do believe its wise to invest all of our assets with the same investment group? Or would it be wiser to split our savings and invest with more than one group. Terry Says:  That all depends on the "kind" of investments you're talking about!  If you're talking about…

I have land in Florida "underwater" and bank loan on this investment for $90,000 ($100,000 in 2006) for 34 years (loan already modified). The land itself is worth $15,000. I am 65 years old this year and at 66 will retired. My only assets will be paid home (in 3 more years) worth $240,000, my…

I worked for a company for 20yrs. Then they shut down I've been working at another company for 10yrs and turning 55 yrs old.some people at first company said I should start taking my retirement while it's still there? Terry Says:  Wait -- I don't quite understand your question.  Did you have a pension plan…

I am 60 years old, single, and making around $95,000 a year. I have a 401 and put the maximum in each year.  However, taxes really hit me hard. Is there anything else I can do to reduce my taxes? Terry Says:  There are very few "tax shelters" left in the tax code.  If you…

Looking to retire in 4 years and will collect a city pension approx. $75,000 (hopefully) and should have about $500,000 in my 457 plan. I am wondering if a term life policy would be better than a whole life for my wife when/if I pass away. I am the sole financial provider, if I pass…

February 3, 2015 Hi Terry, My Wife and I were considering rolling over our kids (8 & 6), Bright Start College Savings to the Bright Directions Plan.. They each have about $38K in their accounts, we are still upset over the loss that we suffered 5 years ago with the Bright Start debacle, our concern…

How do I put a freeze on my credit reports Terry Says:  Contact each of the three major credit bureaus.  Go to www.Experian.com; www.TransUnion.com; and www.Equifax.com.   For example, here is the exact link to the credit freeze section at Experian:  https://www.experian.com/freeze/center.html   Experian does not tell you how much the freeze costs until you have filled out…

Hey, I'm 45 with 146k in a 401k and 1700.00 in pensions per month accumulated so far. Is it fair to forecast 10 years of future pension earnings for a total 401k balance? Since most use 401k balance it seems easier this way. Terry Says:  I'm not quite sure what you're asking!  If you want…

On the radio you mentioned your favorit web sites when shopping fo health insurance can you tell me the names Terry Says:  Yes, and the entire column is posted now -- sorry for the delay.  Go to www.eHealthInsurance.com or www.GoHealth.com.  You can easily contact them through their toll-free numbers, and they will walk you through…

    Hi Terry, it was good to see your article discussing the FAFSA today. My daughter is a freshman at a state university so this is my second year filing the FAFSA. I am remarried so my second husband's income is counted on the form. However, her dad (non-custodial parent) has a 529 plan…

Please tell me the specific documents one should keep in the 'Forever Box', Thank you Terry Says: If you go to my website -- www.terrysavage.com -- and sign up in the yellow box, by return email you'll get a confirmation -- When you click on that email, you will get another with a link to…

My father passed away in March of 2014, and my mother (82 years old) was the beneficiary of his one-time pension pay out. My mother put his pension into a Chase Bank IRA, for convenience and in order to avoid the 20% government tax. The total Fair Market Value as of 12-31-2014 is $31,138.88. Now,…

I would like to know if any of the following expenses are reimbursable (tax free) from a Coverdell ESA? SAT/ACT testing SAT/ACT tutoring Submitting SAT/ACT scores to colleges College application fees (typically $60-$80 per app) Computer for college Any other pre-college expenses I may have missed? Thank you Terry Says:  There are so many features…

H i Terry, I'm considering a Participating Whole Life (PWL) insurance policy but have some concerns. I'm concerned that the mutual insurance companies that offer these will not be able to pay projected dividends given they are typically ~70% invested in high quality bonds which have had historically low yields for some time now. I…