Ask Terry Archives

Hi Terry, I recently pulled up my credit report and found that my information was all incorrect and credit is ruin. I lost my house back in 2008 and have been trying to get on track the last seven years. I have now clear all debt of my knowledge and have establish good credit with…

My wife is eager to put money from our savings into Roth IRAs. Given that I am 67, retired, and my wife plans to retire within 5 years, is Roth the way to go? All my reading about Roth IRAs seems to be touting their advantages to the younger investors. Your thoughts would be appreciated.…

Hello, We withdrew funds from our four grandchildren's Bright Start account. We used the money as a down payment to finance a new car. The total gross distribution was $7067.77. How much 2014 tax can we expect to get hit with. In hindsight, it was probably a big mistake to go this route in financing.…

Terry, You mentioned on WGN Radio with Bob and Marianne if you delay taking Social Security benefits the monthly payment can increase up to 8% by full retirement age. Should the amount of money you would gain in 6 years be factored in if one were to begin collecting sooner? It would take several years…

Do you think it's necessary to buy credit monitoring such as Protect My ID or Lifelock and which do you prefer? Terry Says:  I don't want to jinx it -- but I haven't done that.  I think it's enough to track your credit cards regularly to make sure they are not being misused.  And to…

Recently on WGn you spoke about a planning guide available through your website. I have not been able to find it. Is it still available? Terry Says: You're probably talking about my Personal Financial Organizer form.  When you sign up for my free newsletter, in the yellow box, giving your name and email address, you'll get…

When our sister passed, myself and two other siblings inherited her estate which included her home. The home recently sold and the closing statement includes a fee of $868.00 paid to our attorney for "Owners Title Policy (Agent Premium)". As sellers was this type of policy necessary? Terry Says:  Title insurance protects the homebuyer, making…

Hello, Have a CD mature for $50000.00 Your thought on Discover online savings account Currently offering .90% Terry Says:  Frankly, I had to look up the details to be certain of my response.  But this is an FDIC insured "savings account," allowing you 6 withdrawals a month (see details) and paying 0.90% rate.  It looks…

Recently we have received letters from mutual fund and stock shareholder service companies notifying us that our accounts may be transferred to the state of IL because they may be viewed as "abandoned". Our accounts have not been abandoned, these are investments that we no longer add money to. We signed the letters and returned…

Hi Terry. My wife is a teacher. She has her own social security benefit through education, but has also worked many years during the summer in regular business and has a regular social security benefit. Do you know what we need to do to make sure that she gets her regular social security benefit? She…

I heard you today on WGN talking about the best age to claim Social Security. I didn't get the whole conversation. My husband is 61 and I am 48. He believes that claiming at 62 is more beneficial then waiting until 66. Is there a formula or calculator to help us decide? Thanks! Terry Says: …

i am 62 i have as of now my lump sum i am taking to invest i see you dont like annuities too much for investments .my question is i have over 4 hundred thousand to invest,any suggestions for investing.? any ideas would be helpful . Terry Says:  Well, you have a wonderful problem!  And…

Can filed tax returns, credit card statements, paycheck stubs, bank statements, insurance explanation of benefits, etc. be shredded after 3 years? Terry Says:  Not if you think there's any chance you could be audited.   Wait at least 7 years, before destroying.  And there is no statute of limitations against fraud!  And, remember, it is not…

I have College savings accounts for my two grandchildren totaling about $133,850 together. Since I am in my upper 80's, upon my death, will this money be considered part of my estate whereby I would have to pay added taxes? If so, would it be better to transfer this account to my son now and…

I have $6,000 in my Vanguard IRA that is just as cash and is not in a fund. I'd like to invest it but not sure where to put it. I am about 10-15 years from retirement, and already have some in a 2025 Retirement fund. Thanks Terry Says:  Go online and review the Vanguard…

Hi Terry. I just read your BLOG posting about FAFSA and Family via Huffington Post. You are the first person I have seen comment on the privacy issues and parents possibly not wanting their 18 year old to know all of the details about their finances. I don't understand why the gov't doesn't set it…

What do you think about annuities? Terry Says: Uh uh -- that answer could fill a book -- or at least a chapter in a book.  In fact, it did!  Go to my website to get a copy of The Savage Truth on Money and read the chapter on annuities.  I have nothing especially for…

Can you give me the email address of the person ( Leslie, I think) who you mentioned on WGN this afternoon? Thanks! Terry Says:  It's Leslie Struthers --  my mortgage specialist.  Her email is Leslie@GuaranteedRate.com.

I am 72 and have lost my job in November 2014. When do I have to take my first RMD? Terry Says:  You likely should have been taking MRDs at least a year ago -- unless you are still working and contributing to a company 40l(k) plan.  But now that MRD will be required.  If you…

I'm a disabled widow with an income of $12,000 a year I sold my home for 35000 do I owe the IRS any money Terry Says:  No.  Each person has a $250,000 capital gains exclusion on the sale of a residence --and it can be used every time you sell a personal residence.  So I'm…