Ask Terry Archives

Hi Terry, Read your 5/10/15 article in the Chicago Tribune "5 things to know about life insurance". Here's my question..I'm a 66 yr old female, recently retired, single with no dependents, condo paid in full. I have a nephew that is my beneficiary. I don't want him to have any out of pocket expenses when…

need help is there a seven year rule that you do not have to pay your student loan Terry Says:  There is no rule like that!  You get 6 months after graduation to START repaying student loans.  And you can get a deferment if you can't pay because you don't have a job.

I am 68 years old and considering investing in a Power Index Annuity. Would like your thoughts and input concerning this ten year investment. For maximum yield I must not draw or have access to the funds for ten years. The investment company claims a guaranteed 7 percent yield each year for ten years. Do…

Hi Terry, I was wondering if you could please answer an asset location question for tax efficiency during retirement. I’m not sure where to put 4 equity funds – in tax deferred or taxable accounts. Two are passive managed index funds: VTSMX and VFWIX. These should go in personal taxable accounts, right? The other two…

I read your column in the Chicago Tribune on sunday, june 21st on 5 things to know about refinancing student loans. Going forward, I'm wondering how I should proceed because we have a couple parent plus loans and they're both carrying 7.9% which is outrageous as you say yourself. Our parent plus loan 1 is…

I made some bad career choices and lost a couple jobs and ended up in debt. Now I have over $10,000 in debt and a few of these are judgements. I don't want my wages garnished when I start my new job what should I do. Terry Says:  You should immediately call the National Foundation…

Confused on how it all works. I know approx how much SS myself and my husband will receive .We both have tiny pensions, under $1000.00 a month together. Our IRA's have approx $200,000 Do we start taking money out of our IRA's to make up the difference in what we need to live? Terry Says: …

Dear Ms.Savage, I read your column about refinancing student loans in the Sunday Providence Journal (6/21/15). I have two parent plus loans currently. They are from '06 and '07 (my daughter graduated from Bryn Mawr College in PA. in '09). The rates are fairly high. I'd love the opportunity to refinance and get a lower…

My son is paying for the Parent Plus loan that we took out for him 10 years ago. He thought it would be great if he could get the loan in his name as he is paying for it anyway and then he could get the credit. So since the loan is in my name…

I am a physician working at Lutheran General, in Park Ridge. My wife just finished her M.D.from University of Pittsburgh,Pa. My wife has taken loans at high interest rates. My dad heard part of your comments on "Bob Sirott &Marianne Murciano" show on WGN radio., about refinancing at under 2 % interest. Can you please…

Can we get a reverse mortgage on a condominium? It is the primary residence. Thanks Terry Says:  Yes!  For more information go to www.ReverseMortgage.org.  (My father has a RM on his condo!)

Dear Terry, I find your articles in my local newspaper to be the most well written and informative. Since I established an SNT for my disabled daughter age 63 in 2005, I've had concerns. Her sister, age 64 and employed is named as Trustee. She will need to rely on the attorney (writer of the…

Would you please pass this advice on to our state politicians (Madigan). Terry Says: Thank you.  They don't seem to listen to common sense!

WHY DO YOU ALL ASSUME THAT A HELOC IS THE SECOND LOAN ON THE HOUSE. THE GOVERNMENT CONTINUES TO IGNORE THE MOST RESPONSIBLE PEOPLE, PEOPLE WHO ACTUALLY PAID OFF THEIR HOME AND THEN TOOK A HELOC OUT AND TEN YEARS LATER WHEN THEIR INCOME HAS DROPPED DUE TO RETIRING THEY CANNOT AFFORD THE HELOC RESET,…

Do all reverse ,mortgages have to be HUD or FHA approved Terry Says:  YES -- any reverse mortgage you want to take out must be FHA approved.  The FHA insurance protects the lender (in case you live too long and there is not enough equity when the house is sold to cover the withdrawals you…

Circa 2001, if you refinanced a student loan, the interest could no longer be taken as an income tax deduction. Has this changed? I did not see it as one of the things to know about refinancing student loans. Terry Says:  Frankly, I don't remember that provision -- and the current IRS guidance does not…

I'm 55+ and in the beginning stage of estate plan. What is the starting point. Do I need to contact an attorney or financial adviser to prepare a trust or will ? Thank you Terry ! Terry Says:  Yes, you absolutely MUST contact an attorney who specializes in estate planning.  Because so many of my…

Hi, Since I have been in my current position a year I can officially apply for other internal postings. For some reason I am feeling like if I do apply I maybe hurting feelings or I just don't want that stigma of "I took a chance on her, & she only stayed a year". Now,…

My mother passed away in 2011. Recently, I found a box of her papers that had been in my attic. Among the papers was a little book titled Record of All Family Insurance Policies. There are 6 policies listed for me, and several listed for my mother and father. I had no idea there were…

Is it better to take a lump sum RMD or take a monthly check? I will be 70 years old in October and will need to make a decision by April 1st. Terry Says:   Well, that depends on how you like the money coming in. If you get it all in one lump sum can you…