Ask Terry Archives

I pay over 1/2 of my mom's living expenses for her home care. How do I claim this on my return. As a medical expense or as a dependent? Terry Says:  Consult your tax preparer, but if you can document that you provide more than half of her living expenses, you can declare her as…

my mother is 75 years old and disabled. She has not worked since 1982 because of a terrible injury at work. She owns her home, has one credit card that she pays off any charges within a month or two. She has about 8000.00 in a basic savings. 1800.00 in her household bill acount. Brings…

I just opened an account with fidelity and plan on rolling over a small Traditional IRA (that had been an old employer IRA and rolled into a traditional 6 years ago) into a Match Fidelity Traditional IRA. (Thanks for the tip!) I want to fund it before the deadline (I am 56) however, I do…

At 81 should I transfer all my IRAs to Roth IRA? Would that be beneficial? Terry Says:  I can't think of any reason to switch to a Roth at this age.  First, you've already started taking minimum required distributions.  So over the past 9 years, you've taken a bite out of the money in the…

I have a TSP account with the government and although I am only 68 I need to start planning what to do when I reach 70 1/2,when I have to withdraw that account. Where should I invest that TSP account? Terry Says:  For those who are not aware, the TSP refers to a government Thrift…

"When my Savings Bonds reach final maturity I understand from your recent column that I will have to report the total interest (even if I don't cash them). As I have not reported the accrued income annually (had no idea of amount with paper bonds), and obviously here has been no withholding on that interest,…

In your article Sunday, 3/15/15 you stated ”Older adjustable series EE bonds currently earn 1.40 percent”. I have EE bonds bought between 1986 – 1993 and they are paying 4% interest, still---that was the minimum rate they could go when I bought them. I go to the website you mention, and that is what they…

We owe $30,000 on our home with 2 years left on the loan- have no credit card debt and one car payment of $211.00 a month and a $200 a month college loan for 2 more years. Our financial advisor thinks we should take out a new 20 year mortgage of $100,000-he's not not calling…

HI. I wrote earlier about my 30000 home equity line of credit. That is what I owe. I have a 230000 mortgage .plus the 30000 home equity that I owe on. I make about 90000 a year.I do not have money saved at all.I am married and 55. I knocked off debt already. I have…

MY MORTGAGE IS 230000.I HAVe 30000 LINE OF CREDIT. I have 70000 in 401k. No liquid cash..do I save up 3months emergency fund or pay off line of credit. I make 90000 a year. Im married my kids are all in early 20s. Terry Says:  I'd like to help -- but I'm not quite sure…

My $310,000 mortgage is maturing on April 15. However, my house is going up for sale on April 1. What are the best cost effective option to "renew" this mortgage - without a prepayment penalty - as it will be fully paid off within 60-90 days, when I close. And I am not purchasing another…

Hi Terry, Mom is 85yo,is a 24 hrs cares. She has custodial cares w nightcares and day cares, but there are still some times we our family are in a bind. If we offer to pay cash for these caregivers to stay a bit longer or to come in a bit earlier, is there any…

I am 77 , my wife is 73 our total portfolio is 250,000 I need about 15,000.00 a year in addition to our ss , we are both very healthy and active.. My financial adviser charges 1 percent and I am now drawing 12,000.00 per year and the 1percent is eating into my total investment...…

Hi, My bank had rollover over my old 401k into a Qualified Variable Annuity over 10 years ago. Is there any way I can rollout money from this annuity into a Retail Mutual Fund IRA I have with Vanguard. I'm 56 years old and was trying to avoid the annuity high fee's . tks Terry…

Both my wife & I (in our 70's) are not eligible for long term care insurance. Have each been turned down by 3 major insurance companies. Who are the 'short-term long-term' care insurance companies that you referenced in a recent newspaper column? Terry Says:  Well, if you waited this long and are in poor health,…

My wife & I are currently debt free and within 2 years of retirement. Should we be funding our 457/403 plans as much as possible? Terry Says:  Well, my immediate reaction is to say, of course you should save as much as possible within your plan because you get a tax deduction for your contributions…

HI Terry.. I am 54 and married. Should I pay off my home equity of 30000 dollars or save for retirement. I have no savings Terry Says:  The simple -- but difficult -- answer is BOTH!  I don't know whether you have a mortgage or a home equity loan/line of credit.  It's not so serious…

My husband and I are both age 72 and are residents of Illinois. We are currently spending the month March in Florida and have come across a condo that we are considering buying as an investment. We have enough money in a savings account to pay cash for the unit and by renting it Jan,…

I am almost 66 and retired my husband almost 71 and collecting on his IRA is still working part time. Can I open an IRA in my name if he is still bringing in a paycheck, I know he can no longer put money in his. Terry Says:  In order to open an IRA (after…

My mother recently passed away and I am preparing to sell her house (her only asset) and will stand to gain about $350,000.00 from the sale. My husband and I have negligible investments and savings. Our monthly income is $9000.00 and our expenses are $7000.00 with the excess earmarked for long term expenses. We currently…