Ask Terry Archives

Terry, we're in a predicament here in how we should prepared for 2016 and need your advice. I am 63 and semi-retired with $330K in retirement and my spouse turning 59 1/2 in January with over $50K in retirement savings and planning to work full time since 66. We are looking at approximately $10K+ in…

My 78-year-old father has convinced my tween daughters to put their babysitting/pet sitting money into a Roth IRA. It says it will be like opening a very nice, and potentially needed, present when they are his age. One has $400 and one has closer to $500. They are over 11 and under 18 years of…

Hi Terry, I am almost 61 years old and have earned 32 work credits prior to 1990. I have worked with the Chicago Public Schools since 1990 and since have not earned anymore work credits. I plan to retire in four to five years. My question is should I be trying to earn the other…

11.27.15 good informatio in Chicago Tribune. how do we run a savings bond valuation report? is there any charge by financial institutions and if there is a charge can we cash the bonds at any other place without charge? Terry Says:  There is never a cost for cashing in the bonds.  You can value them…

Hello Terry. I have multiple cards and can only afford to make the minimum payment on each one. I'm considering either transferring the balances to a single card or possibly taking out a loan to pay off the balances. A few of the lending copies I've inquired about (prosper, avant etc) offer a lower rate…

Do I still need disability insurance? I can afford it. I am a 61 yr. old dentist who hopes to work until age 67. My Ameriprise Goal Tracking Review shows that I can retire at age 64.5 in a better position than the 2014 forecast. I have an ADA group plan costing $2,600/yr. for $4,000.00…

Hi Terry, I am a single woman who has been a diligent saver my entire life. I have always tried to max out retirement contributions, etc. I have been researching fee only financial planners to help with the next phase of my life--retirement! I am concerned about the cost of this over time--it seems like…

I recently heard of gold being sold [GOldline] in form of strips for carrying in wallet in place of other instruments for 'when things get bad'. Cost advertised is 800.00 for a number of strips each 1/10 ounce. What is your thinking on this? Terry Says:  I think that's getting carried to an extreme.  When…

I have several mutual funds at different firms along with a 401k. I'm looking for a piece of software for my PC that will allow me to aggregate the information from all these different accounts into one PC program such as Excel. I'm able to perform this function through my 401k with Financial Engines. However,…

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…