Ask Terry Archives

My brother and I are helping our 94 year old aunt (widowed)with some of her health care and finances. Her 66 year old daughter with Down's syndrome resides with her. We are concerned about the future of our cousin, if her mother passes before her or if her mother someday may need to be placed…

What is your opinion of HECM for purchase ? Thank You Terry Says:  While most RMs are used to allow people to remain in their current home and have the income to maintain the property and taxes, there are more instances of Home Equity Conversion Loans (HECMs) or RMs being used to downsize and purchase…

After reading your article in the Baltimore sunpaper I,m curious about how you would see a reverse mortgage working in this scenario. I,m 74 as is my spouse our home is presently worth about 230,000 with no mortgage and a home equity currently at 26,000 my idea is to sell this home conventionally move to…

If one spouse is under the age of 62.,can that spouse to qualify the other spouse ,and owner of property to qualify for a reverse mortgage ? Thanks Terry Says:  Only if the younger spouse removes his/her name from the title.  That means that when the older spouse dies, the surviving spouse will have no…

  Dear Terry I have read your article about Reverse mortgages in the Sunday Sentinel, My question is, in paragraph number 2, you stated that the interest rate is fixed at the time I take out the reverse mortgage. However, when I closed on my reverse mortgage here in Florida July 2012, the loan officer…

I enjoyed your resent article "5 things to know about reverse mortgages in the Commentary column of the Business section of the Huntsville Times. I think it would be most helpful to the reader in understanding a reverse mortgage if you presented an example. For example, a 65 year old couple owning a $100,000 home,…

My parents r in their mid 80"s and have a reverse mortgage with little money left to use-they r concerned about what happens when the money runs out-how long will they b able to stay in the house and what if they cant pay the monthly fees? thanks Paula Terry Says:   If they took a…

Please let me know who the lender is that helped your dad with his reverse mortgage. Thanks, Sheila Terry Says:  Gosh it was so long ago, that I don't remember.  Go to www.ReverseMortgage.org to search out a RM lender in your area.

Terry, I recentley sold rental property, what can I do to keep from getting taxed on capital gains for the whole amount? Someone told me I could reinvest the money and not get taxed? How, in more land? Or could I put it in the market and not get taxed? Any suggestions would be helpful.…

I am a resident of Illinois and currently have a Bright Start direct-sold plan for my each of my kids. One is 12, the other is 14. They are both in age-based portfolios, and each account currently has about $74,000 in it. I know you not a fan of Bright Start and I'm considering rolling…

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…