Ask Terry Archives

My wife in I are in our early fifty but haven't been as prudent as we should of been with regard to our saving for either college or retirement. We have approx $50k for each or our two boys and she has a 401k but unforunately I've made a couple of bad investments and own…

Dear Terry, When leaving or retiring from a firm, can a person's Roth 401k account be converted directly to a Roth 401k without incurring taxes or penalties? Phil SAVAGE SAYS: I'm sort of going to punt on this and send you to the real experts. I would suggest your contact Fidelity or Vanguard about your…

HI Terry, I'd like to discuss a bad investment I made, but I don't want to do it in a public post. Is there another way I can reach you???Minnie SAVAGE SAYS: My email is Terry@TerrySavage.com, and I understand that some questions are too personal. My blog is for posting answers to questions that could…

My 90 year old mother gave us $50K a short while ago to both my kids for paying for their college educations in which I told her I feel better if we pay her back over the course of the next 4 years because she may need it for her assisted living facility. Where would…

I am an elderly senior & know that any yr. income over $25,000. , my S. Sec. will be taxed. I have an IRA worth $ 160,000. of which my RMD for 2013 will be approx. $8000. for the year. I also have savings from the sale of my home of $150,000. & approx. $40,000.…

Terry, I wrote once before about annuities. My parents put all their eggs in annuities at a late age; my dad been officially diagnosed by the VA as catastrophically disabled. He is 84. I cannot believe that there isn't some way to free up that money without penalizing my dad. It seems so cold and…

Terry, My home is in the early stage of foreclosure, just because we were short on one payment. The company who is holding our mortgage (which is a nightmare to work with) has also refused to accept our on-going payments, which we can make. We have applied for a modification and the Illinois Hardest Hit…

Terry, Thanks for all of the good work you do. I am within a couple of years of retirement. About 45% of my retirement investments is in a total market bond fund. Do you recommend exiting this type of fund and moving the assets to a money market fund or a short term bond fund…

Is this a good time to invest in TRowe Price Floating Rate fund (PRFRX) or similar funds? Also should I sell intermediate bond funds and buy short term bond funds as treasury yields seem to be heading higher now (Jun-Jul 2013). I'm mainly investing for income. Am retired and in my 60's. Thanks. SAVAGE SAYS:…

What do you think about financial advisors who are paid on an hourly basis for advice about an investor's portfolio? The advisor serves as a consultant, and is paid for the time taken to evaluate a portfolio and make specific recommendations. The investor takes care of the transactions. SAVAGE SAYS: Well, given computer programs, it…

Please advise on the best source for reverse mortgages. What is your opinion of AAG? Thank you. SAVAGE SAYS: Well, first let me say that I highly endorse the concept of Reverse Mortgages -- for the right situation and done with the right lender. In fact, I arranged a RM for my father (now 92)…

Do you have an opinion on investing in Duke Energy's "Premier Notes"? They are advertised in BetterInvesting Magazine as "an alternative for your short-term funds." I realize there is risk in investing any funds in a non-insured type investment but the floating rate offered on these notes is certainly attractive for short-term funds, Thanks. SAVAGE…

I have a non-qualifying annuity With Foresters, that I bought 2 years ago, I know I'll have to pay a 7% penalty for early withdrawal, but do I have to pay tax on that money, I bought it with the proceeds from the sale of my home after my spouse passed. The annuity has increased…

Hi, I am 61 and semi-retired. I had money in dividend and income fund with fidelity and am considering moving that money to fidelity's 2025 target fund. I seek to begin taking my required MRD once I turn 70 1/2 in 2023. Would any target fund be a reasonable option for me putting my money…

As a retired Illinois teacher I am worried about my pension. Even though I made my contributions over the years, I am concerned about the state's payments. As unfair as it is, my pension will be reduced. I am a widow, 65, no children, not eligible for Social Security with investments of $550,000. My pension…

I need assistance in locating my plan administrator for Household Financial Services Trip plan, I have talk to US Department of Labor. They gave me Vanguard and HFCC, with no luck. Can you help me find my retirement? SAVAGE SAYS: Well, first thing, have you tried the HR department at Household?? The company was acquired…

Hi Ms. Savage, My question is I'm 61 and need to invest wisely without loosing money. I have a IRA Venture Annuity with John Hancock (19% Aggressive growth, 11%Growth, 22% Growth & Income and 48% income) my advisor said to switch to Franklin Templeton Investments (Franklin Income Fund) not to smart at this stuff, what…

I have 170,000.00 in a pension fund from my job the hospitali work at was purchased and the money is just sitting there. I am 64. Years old but don,t plan on retirement for the next 4 or 5 years I would like to put it in somwthing that I can earn some interest. Don,t…

My John Hancock LT policy has gone up effective August 2013 by 15%. They have applied for a total of 40+% and promise to raise rates by that much in the future. I had a rate hike in 2012. I am astonished to find that two friends with John Hancock have not had rates rise.…

starting in jan a can investing 1500.00 a month for ten years SAVAGE SAYS: Well, that's a pretty incomplete question. I have no idea of your age, risk tolerance, or total financial picture, so it's like asking a doctor to prescribe a medicine without knowing the symptoms!? But I'm going to take a guess, and…