Ask Terry Archives

As a recently divorced single mother of 7 young children with my oldest child having special needs with a divorce financial settlement to be received primarily as annuities, what would be your financial advice on liquidating existing annuities and re-investing the money into other investments and/or retirement funds? It is extremely important for me to…

1. If we have assets of $500,000., do we really need long care insurance? We are both 73 years old. 2. The 2nd question is are you familiar with the 5 year call back of medicare as it relates to nursing homes? It was suggested that we put a large amount of our assets in…

Hello Terry, please respond to The subject in regards to NO RMD after a certain age is reached (ie. 80+ years). Tell all you know on the subject. Thanks from Charles M SMG (Ret) Atlanta GA. Terry Says:  I recently wrote a column -- please check the HuffingtonPost archives by clicking on the box at…

Upon hearing that bank accounts had been hacked in several prominent banks, I took some of my cash out and put it into a vanguard money market. was this a wise decision, or is my money safer in the bank? Terry Says:  Oh gosh, you got carried away.  I never read that bank accounts had…

Hi Terry, I attended your AARP presentation last week in Schaumburg. GREAT JOB!! We have a 23 year old daughter who accepted a new position back in March. She is making a pretty good salary ($43K). She has signed up for their 401K plan. However, stills has a nice nest egg of about $12K just…

Is this a safe fund to be invested in at this time? I have 95% of my savings invested in this fund , personal money and IRA money. Terry Says:  I would never recommend having 95 percent of your money in any one fund!  Where is your "chicken money" -- the money you can't afford…

I have a 401k plan from a previous employer; I left employment in my 40s to become a stay-at-home mom, but continued in the plan because it was doing well. Is it possible to take penalty-free monthly distributions at age 55 if I am no longer employed and am not retiring? Everything I read only…

Hi Terry: OK, I'll admit it; I'm a DIY (Do It Yourself) investor; yes, one of THOSE that draws the silent ire of many a financial professional. Thanks to you and your guidance, along with other sound information if been able to parse from other publicly available resources, I find myself moderately confident about my…

I recently sold my condo and moved into an apartment. I was told by a financial planner that rent increases (my salary will not) therefore, I should have bought something else or gotten a roommate. The upkeep of owning my own place was a burden and hard to keep up but he's right I may…

I opened a Roth IRA at my bank about one and a half months ago. It's only $3,000. My sister says I should go with her guy who will put real effort into making good investments for me. He's with Edward Jones. What kind of penalty would I be looking at to get the Roth…

I just had a cd come due and need to reinvest it. We take the interest to assist in bill payments. Where would you reinvest the money now? I have gone to bank rate to view online cd rates. Any suggestions? Also, with Home Depot in the new so much now (Target...) being hacked, what…

I have a rental home in California we bought in 1986 for $100,000 and can sell for around $360,000. that I'd like to sell but was told I would have to pay 35% in capital gains tax which would be around $100,000. Would this be correct or does the percentage go by you income? If…

Will reits go away anytime soon? And if so, why? Thank you. Terry Says: REITS are Real Estate Investment Trusts -- a concept created in the 1960s to allow owners of real estate to securitize their assets -- but only if they pass 90 percent of their income on to shareholders in the form of…

I am over 60 and ready to retire. I have a 150,000 mortgage and 250,000 in a 401(k). I am not quite sure what to do. I am currently self-employed and I paid 15,000 in taxes last year. I want to take out 50,000 and do upgrades on my home; however I am afraid of…

Hi Terry, I began investing in four actively managed mutual funds in 1994. I dollar cost averaged them until around 2000 when I stopped adding new money. The money in the accounts has increased over time. I am now thinking of moving some or all of that money into index funds. Management at the funds…

I heard you speak one time of a teaching piggy bank for kids with separate slots for saving, spending and donating. Where can I find this if it is still available? Terry Says:  Yes, this is my favorite child's gift (probably about age 5 and up).   Here's the link:  http://www.msgen.com/assembled/money_savvy_pig.html Cut and paste that link…

best source for reverse mortgages Terry Says:  There are literally hundreds of reverse mortgage lenders.  So let me take you to the starting place to learn all about these products, which I have heartily endorsed -- IF you meet the qualifications and the need.   Go to www.reversemortgage.org to learn all about how these plans work, and…

Terry, My wife was born and raised in the Philippines and virtually all her family still lives there (not Manilla). Since we've been married in 1987, we've either sent them clothes, food , or money especially for the parents. Her parents have been in declining health so money is entirely used for their medicine now.…

Is there a fairly safe financial product that can earn 3% a year? I'm retired and would like to put about 150,000. into such an instrument (if it exists). This is about 25% of my liquid assets. Terry Says:  Sadly, in today's world of Fed-manipulated low interest rates, there is no "safe" ie "chicken money"…

Hi Terry A lot of inquiries are how much should I save, 401K or Roth, etc. What if you are already past 65 and are on Social Security. Your options for saving are nil. But you have several hundred thousand dollars already saved in 401K's and IRA's. What advice would you give to people in…