Ask Terry Archives

Terry, my father recently passed away and left me a small inheritance (about $22,000 total), which I will not receive until his small house is sold. I am also planning on divorcing my husband of 25 years because he will not give up his addictions .. cocaine, pain pills and gambling. He has blown through…

what is the best plans for saving for college. Terry Says:  What you want is the 529 College Savings Plan, where the money grows tax-FREE if used for college in any state, for any child in your family.  Each state has its own 529 plan, but you don't have to invest in your own state…

Hi Terry, My husband has been out of work since February 2012. I'm currently working and we have two kids under the age of three. My question is we've been keeping money in a Capital One 360 account to pay for our taxes and daycare for our one child. Should we leave our money in…

Terry, I wanted to take a portion of my 401k (from past job) and transfer to an IRA. I learned that since I'm not a current employee, I'm not allowed to take out just a portion of my money. Either all of it or nothing. My 401k has been doing well an average of 15%…

Terry: What do you think of the senior annunity that gurantees 8%? Terry Says:  I think it is a ripoff, in one of a few ways!  Not quite sure where you found this, but for sure you don't want to do it!

I've always wondered where the money goes after the government wins a case against a company and the company is fined. In today's Sun-times, 3/29, it was stated that Toyota paid a $1.2 billion fine. Where does all that money go? The only money I remember receiving, years ago, was due to the big tobacco…

Terry, I am turning 70. My wife and I still work, and own our home. We would like to buy a condo in Hawaii as an investment. What are the tax consequences of cashing in a regular IRA to use as the down payment of 75K. Terry Says:  Since the condo is for your personal…

Hi Terry, we are in the process of selling our home of 38 yrs and moving to Florida, we've already purchased home in Fla. We'd like to know what is the best thing to do with the proceeds of the sale where it will do the most for us. Thank you Terry Says:  Well, first…

Hello Terry, Today I saw that the GE Capital Retail Bank is offering the following... the GECRB IRA CD’s lenient early withdrawal provisions for oldsters. Its CD disclosures provide that no penalty is imposed on early withdrawals “when an account is an IRA and the owner … reaches the age of 59½.” According to bank…

Hi terry: Question: In the past there was concern over Bright Start Illinois performance etc Is this still an issue? Or can I feel secure opening an account for my Grand Children?? THANKS MUCH! I assume state program better than something like Fidelity 529? If you’re saving for college for a child (or grandchild), what…

Terry, I would like your opinion on targeted retirement funds. I am currently in the T.Rowe Price Roth 2020 Fund and have been for years. Recently, I heard a financial expert state that he doesn't recommend this type of retirement fund because when the interest rates go up, the bond funds go down and you…

Hi Terry, I will be retiring soon and won't need the money form my 457 account for several years. I'm interested in preserving my principal and recently heard of Index Based CD's which are apparently sold through banks. Do you recommend them? Tying up the money for a number of years won't be a problem.…

Terry, my twin sons will turn 26 soon. They are both searching for jobs. What is a good source for info on available temp health and dental policies? Terry Says: Well, actually, they should immediately -- within the next week -- go to www.Healthcare.gov, since they will no longer be covered under your insurance when…

Hi Terry, I'm looking for good websites to understand and review options for saving for college. Thanks, RW Terry Says:  By far, the best way to save for college is in a 529 college savings plan, where all the money grows tax-free if used for appropriate college expenses, and where you can use the money…

My kids, 21 and 18, worked over the summer and want to put $5500 and $2900 respectively in Roth IRA's by 4/15/14. I thought Fidelity Spartan 500 which is an index fund of the S&P 500. What do you think? Terry Says:  Good idea.  But you must be sure that they received tax documentation that…

Is the interest tax exempt I am seeing conflicting statements regarding this. Also removed money from Roth IRA prior to 59 1/2 that was started with nontaxable dollars in 2011 for dependent child tuition expecting to NOT pay 10% penalty but my HR Block tax software doesn't list dependent Child college tuition as an exception.…

As a result of the lack of respect for money and its stewardship, I have nothing saved. There are, however, no big debts (school loans, car pmt, mortgage etc.). I am 64, single, have no children and my medical is taken care of through the V.A. Hospital program. Monthly net income is composed of Social…

Is gold a good hedge against the dollar? Sources are saying that the dollar will be useless and that having gold will keep you protected. I was in the stock market but anxiety about it going up and down was too much for me. am 72 and will do okay withoout the income from the…

Terry, I've read that the surest route to bankruptcy is being a "single mom no child support. HUD rental assistance funds frozen for eight years. grandparents picking up the child support until retirement savings almost gone. Where can the kids get regular monthly rent assistance to keep a decent roof over their heads in a…

Hi Terry, We need to get a new financial person, I meet Jim Flanagan of Bentron Financial Group, Inc. at his office regarding taking early retirement (I'm 61) because of no job for 2 years. He looked at my rollover IRA accounts which have not been doing very good for at least 10 years. What…