Ask Terry Archives

Hi Terry, I am a long time fan of yours and value your opinion. My husband and I are thinking about adding a fixed index annuity to our investment portfolio. We currently work with a fee based only financial adcisor who says annuities are bad. We have a diverse investment portfolio of about $557,000 and…

Can you give your opinion on so-called 770 accounts and what you think of them as an investment for retired individuals? Thanks.. Terry Says:   Do you think you've found the "golden goose" or the secrets of the very rich?? Think again!  This is just a twist on a very old tax provision (IRS Code 7702) that allows…

I have had a reverse mortgage for the past 8 years. Since that time the real estate value of my condominium has markedly decreased to the point where the amount I "owe" on the monthly reverse mortgage statement is more than the condominium is worth and that amount increases each month. What are my financial…

I'm 70 year old will investing my money in Ira with a lock in for 8 years be wise Terry Says:  Absolutely not.  I assume you're talking about some kind of annuity.  But you don't need an annuity for tax deferral.  Plus, you'll need some liquidity for Minimum Required Distributions.  Whoever is suggesting you lock…

I am stuck.I cant refinance my mortgage and home equity. That would be 280000. The bank said no.So should I pay off the equity first or save emergency fund 3to6months Terry Says:   OK, I obviously would need more details to give you a good answer.  In fact, let me direct you to people who can…

    Hi, Terry, I have a friend who is disabled. She is 53 yrs old, receiving Social Security disability payments, and on Medicare. For years, her husband's medical insurance from his employer was her primary insurance and Medicare was her secondary. Now her husband is unemployed, resulting in Medicare being primary and her husband's…

Hi Terry, I am almost 50, single with no children. I don't make a lot of money and have very little retirement saved, and I'm still paying student loans. I have no credit card debt but I do have a car note and rent. There is no question that I will have to work at…

I am over 65 years old and have still not written a will or made an estate plan. How do I find a competent estate planner to help with estate planning? I want to find someone that charges on the basis of their expertise and their time in completing a plan, not on a percentage…

Hi, Terry. I'm a 65 year-old retired Chicago school teacher receiving my pension and am on medicare. In a few months I will be 66 and will be able to start taking social security. As a public school teacher I am affected by the windfall elimination tax which cut my social security benefits in about…

My daughter just purchased a townhouse. The garage attached is 1 car with an apron on the outside. Is this considered a 2 car garage? The tax document stipulates a 2 car garage. Terry Says:  Oh, you're way out of my territory.  But it sounds like a mistake to me! I suggest you get an…

(Terry: I read your December 8, 2013 article on College Savings Plans in Illinois and I completely understand your position on the Bright START Savings Plan, however, is your position on the Bright DIRECTION Savings Plan the same? Terry Says:  Bright Direction is basically the same plan -- only sold by brokers, who receive a…

I have a coin that has parmelee matherton Mich on it iv look all over the web an can't find anything about it can u help me? Terry Says:   My coin experts are at Harlan J. Berk Ltd in Chicago.  You can call them at 312- 609-0016.  If they can't help you find its value,…

Do you still not recommend using the Illinois Bright Start program? Terry Says:  You can start a 529 savings/investment plan using any state's plan, and still use the money for college in any state.  There is only one reason to use the Bright Start Illinois plan, and that is because you get a deduction on your…

Does taking an IRA distribution count as income that might reduce my monthly social security payment? If so, when should I tell Soc. Sec. that I have 'made' this income, now or next April's tax filing? Should I make some payments to the IRS in anticipation of the future tax liabilities, say quarterly,as if self-…

Where to get a credit report that is secure? Terry Says:  There are several online sources of credit reports, but the ONLY place that allows you complete FREE access to your report, either online or via the mail. is www.AnnualCreditReport.com.

My question: I'm 71. I attempted to roll over the balance in my employer 401K account and was told I was too old (over 70 1/2) to roll my 401K over. Is this correct? If so, will I have to pay the taxes on the full amount in my 401K? Do you have a suggestion…

Would it be a better move to pay off a home equity loan from our investment money? The loan (used to refinance student loand debt) is down to $13,000 at APR 4.24%. We are only required to pay the interest each month. We have investments of over $500K, and personal savings of approx. $100K. Our…

I just wanted to ask you professional opinion on my situation. I am a beneficiary to my parents and my brother's accounts, which are close to 950,000.00. I have about 200,000 in my mother's estate account. How much would you consider keeping as chicken money? Thank you. Terry Says:   I would need to know a…

With 2-4 years before retirement, approximately $1million in investments, I am being told my asset mix should be 65% stocks/35% bonds with only my emergency fund in cash. That seems to be too aggressive when we are soon to be going into retirement and talk of a market correction again. Currently, I have about 18%…

Hi Terry, I wrote to you previously but I want to add information to my question (I haven't received a response from you yet when I emailed you previously). I am age 70 years old, retired and have had a Roth account for more than 5 years. Is it better to withdraw money from a…