Ask Terry Archives

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…

Hi Terry, given a backdrop of rising bond yields (assuming we'll get there at some point), which do you recommend: individual laddered bonds (either high quality corporate or gov't) with varying maturities that are held to maturity or bond funds? If it helps you can assume this is for a $1M retirement portfolio where bonds/fixed…

Hello Terry, I am over 80+ years old, widowed for many years. I have 2 adult children , both disabled on Soc. Sec. disability & Medicare. I do not have long term insurance as I could not afford it. I keep reading about Special needs trust fund but find they are very expensive & believe…

About seven years ago my mother cosigned for a $25,000 non-governmental student loan for a granddaughter. I had her transfer the house to my brother about two years ago because she started to get letters that my niece had fallen behind. I don't see my niece making this debt good anytime soon and my mother…

My IRA is being managed now, but the fees (I think about 2% per quarter) are eating up most of any gains. I have just under 200k in my IRA. And I am living on SS and a small pension. Which almost cover my monthly cost. Terry Says:  To put it simply, you are being…

My mother is bed ridden and unlikely to ever not be and she needs round the clock care. She is 85 and my dad is also 85 but in good health. He lives in their home where my mother also resides with the round the clock care. They have three sons including myself. Payment for…

Dear Terry, Can you please tell me if the IRS audits all home sales for ownership and use tests regarding exclusion of gain on sale ? Thanks for your advice. Terry Says:  I don't know if they audit all sales -- but I wouldn't want to be on the wrong side if you DO get…

My wife and I are 10 yrs away from a planned retirement both are healthy but we are thinking if long term care health insurance should be added to our portfolio. You talked about short-term long care insurance, what are the factors to determines if that would be a good choice for our current situation…

I have short and intermediate bond funds. What should I do to protect myself if or when interest rates rise? Should I invest in individual bonds now? Terry Says:  As I have explained many times, when interest rates rise, bond prices fall.  No one wants to be stuck for a "long time" with an old,…

Terry, 8 years ago a financial planner convinced me to transfer all of my 401 k nest egg into a variable annuity At the time I was 44 years old. My first thought at the time was wow arent there a lot of fees? and dont you open up a annuities when you are in…

My husband and I are both 55 and looking over our retirement investments. What balance of stocks/bonds do you recommend for our Vanguard IRA/SEP investments? They recommend 70/30 but wanted to see if you thought different and if there is anything else to consider here. Terry Says:  It's not a fixed percentage that matters --…