Ask Terry Archives

Hi Terry, I am questioning on whether I should pay off my mortgage ($32,000). Currently my monthly mortgage payment is $900 (P&I - 4% interest rate). I am 61, with a 401K and pension available and plans on retiring in about a year. I have around $150,000 in available cash. Other than the typical homeowner…

In which one of your books can I find information on long term care insurance? And do you have recommendations. I remember you did at one time but at that time I didn't need it and I am in my mid-50's and I want to look into this. thanks SAVAGE SAYS: I have been recommending…

I'm trying to determine how to best use a $35k SSDI lump sum payment. I am retired age 62 and my husband is 66 works part time. While we file taxes jointly, we elect to use our individual income independently. We do have a mortgage (but good equity) and about $6k in credit card debt.…

My daughter , who is disabled, would like to take money out of her Roth IRA to buy a house. Are there any exceptions to the 5 year aging rule for Roth IRA's ? Thank you SAVAGE SAYS: I always hate to tell people this, because it means they will take money out of their…

How does a privatized pension work for investment purposes for a person that is in their 80's? SAVAGE SAYS: I? honestly have no idea what you mean by a "privatized pension"!? Please write back and explain. But if you are in your eighties and someone is trying to get you to "do" something with your…

setting up my retirement account, met with a retirement planner, that a WLS radio show wm gieger recommened, however i see on the state of il site, this broker is not regeristered with finra, should i keep looking, do you have any referrals? SAVAGE SAYS: Lots of people call themselves "financial planners" -- but you…

We have retired and sold our business, however, we have a large commercial building on which we still have a mortgage. The bank does not want to continue the mortgage as we are not owner occupied, and so far we have been unable to get a lease in place--the banks want a 3-5yr lease. We…

Hi Terry, This is a question that's been troubling me for six months, and your response will help me see my way more clearly, and for that I thank you up front. I am partially retired (age 59) and rely heavily on the dividends generated by my closed end municipal bond funds. And I do…

Please give a summary of the pros n cons of the retirement advise that involves obtaining a Roth n using proceeds to buy insurance. For a 76 yr old with an Ira but no roth n investments n 100k or so in cash positions what would be the best way to fund a Roth n…

Hi Terry, For the purpose of tracking asset allocation, do I-bonds count as cash or bonds? I

HOW DOES THE FED PUT MONEY IN THE STOCK MARKET ? I THOUGHT THAT THE FED CANNOT PURCHASE STOCKS, BUT IT CAN PURCHASE TREASURIES. IS THAT THE METHOD (TREASURIES) ? SAVAGE SAYS: The Fed doesn't add money directly to the stock market. It adds money to the banking system -- and sometimes that money flows…

Are low priced stocks that pay high dividends a good choice?Ireally do not understand how this is done. If the stock price is low and hovers at that low price that would give the impression that the company is not a high performer. On the other hand, dividends are paying out profits, how could these…

After my mother passed away, my 82 year old father received 50,000.00 on my mother's life insurance policy. He doesn't make enough from his social security to claim on income tax. He would like me to keep the money in my bank account. Does he have to file a gift tax form? Do I have…

What is your opinion of Investor's Business Daily? Is it worth the money? SAVAGE SAYS: IBD is a very good paper, with tons of detail for the determined investor. Frankly, I just don't have time to read it. Instead I read the Wall St. Journal daily, since it has a more popular and diverse group…

Hi Terry, I have an IRA CD ( 5 yr term ) that will mature this year in Sept. 2013. I am a elderly senior & don't wish to keep this with the same bank. I plan to take my RMD just prior to maturity & will then have a balance of approx. $100,000. Any…

Hi Terry, my employer is having us take our profit sharing 401K out of our current management firm and place it individually where ear choose. ( I know it's unusual). I am 60 and hope to retire in 5 years. Would it be better to keep it as a 401K , which is a little…

Ms Savage. Are you aware of any insurance company that does offer long term care insurance for a person (turned 65y.o. in 2013) with a diagnosed mental health illness and has been hospitalized a few times within the past 10yrs? I have contacted MAGA insurance, mentioned in your articles in the past, and they replied…

You saved $20,000.00 and want to diversify your monies. You invest 45% in a Treasury bond for 3 years at 4.35% APR compounded annually. You place 15% in a CD at 3.75% APR for 3 years compounded annually. 20% you invest in a stock plan and the remainder is in a savings account at 2.90%…

Terry, I just qualified (age 55) for pension payouts from my former company but am working and making good money (don't need the pension money). My JP Morgan financial planner says I should cash out and let him invest; my CPA says I should just leave it alone until necessary (age 62 or 65) when…

i have longterm ins.my wife also has longterm ins.both retired,and on med-care i am a vet and can go to va.becaue of cost risisg as you know ,does it make sense to keep?we are both 67 yrs.old with no major illness.whave no other coverage. SAVAGE SAYS: It's hard to give you an answer without knowing…