Ask Terry Archives

Hi Terry: OK, I'll admit it; I'm a DIY (Do It Yourself) investor; yes, one of THOSE that draws the silent ire of many a financial professional. Thanks to you and your guidance, along with other sound information if been able to parse from other publicly available resources, I find myself moderately confident about my…

I recently sold my condo and moved into an apartment. I was told by a financial planner that rent increases (my salary will not) therefore, I should have bought something else or gotten a roommate. The upkeep of owning my own place was a burden and hard to keep up but he's right I may…

I opened a Roth IRA at my bank about one and a half months ago. It's only $3,000. My sister says I should go with her guy who will put real effort into making good investments for me. He's with Edward Jones. What kind of penalty would I be looking at to get the Roth…

I just had a cd come due and need to reinvest it. We take the interest to assist in bill payments. Where would you reinvest the money now? I have gone to bank rate to view online cd rates. Any suggestions? Also, with Home Depot in the new so much now (Target...) being hacked, what…

I have a rental home in California we bought in 1986 for $100,000 and can sell for around $360,000. that I'd like to sell but was told I would have to pay 35% in capital gains tax which would be around $100,000. Would this be correct or does the percentage go by you income? If…

Will reits go away anytime soon? And if so, why? Thank you. Terry Says: REITS are Real Estate Investment Trusts -- a concept created in the 1960s to allow owners of real estate to securitize their assets -- but only if they pass 90 percent of their income on to shareholders in the form of…

I am over 60 and ready to retire. I have a 150,000 mortgage and 250,000 in a 401(k). I am not quite sure what to do. I am currently self-employed and I paid 15,000 in taxes last year. I want to take out 50,000 and do upgrades on my home; however I am afraid of…

Hi Terry, I began investing in four actively managed mutual funds in 1994. I dollar cost averaged them until around 2000 when I stopped adding new money. The money in the accounts has increased over time. I am now thinking of moving some or all of that money into index funds. Management at the funds…

I heard you speak one time of a teaching piggy bank for kids with separate slots for saving, spending and donating. Where can I find this if it is still available? Terry Says:  Yes, this is my favorite child's gift (probably about age 5 and up).   Here's the link:  http://www.msgen.com/assembled/money_savvy_pig.html Cut and paste that link…

best source for reverse mortgages Terry Says:  There are literally hundreds of reverse mortgage lenders.  So let me take you to the starting place to learn all about these products, which I have heartily endorsed -- IF you meet the qualifications and the need.   Go to www.reversemortgage.org to learn all about how these plans work, and…

Terry, My wife was born and raised in the Philippines and virtually all her family still lives there (not Manilla). Since we've been married in 1987, we've either sent them clothes, food , or money especially for the parents. Her parents have been in declining health so money is entirely used for their medicine now.…

Is there a fairly safe financial product that can earn 3% a year? I'm retired and would like to put about 150,000. into such an instrument (if it exists). This is about 25% of my liquid assets. Terry Says:  Sadly, in today's world of Fed-manipulated low interest rates, there is no "safe" ie "chicken money"…

Hi Terry A lot of inquiries are how much should I save, 401K or Roth, etc. What if you are already past 65 and are on Social Security. Your options for saving are nil. But you have several hundred thousand dollars already saved in 401K's and IRA's. What advice would you give to people in…

Is it allowable to take 401k savings after age 55 without withdrawal penalties ? Terry Says:   This is complicated, but YES -- there are two ways to withdraw from your 40l(k) -- if you retire early.  But you must follow certain rules, which I have cut and pasted below: Leaving Your Job On or After Age…

Dear Terry, Lately it seems that hackers can get into the computer systems of any merchant or financial institution at any time they want. I know that changing passwords is very important but for a person with a dozen bank accounts, credit cards, brokerage accounts, etc to change passwords once a month can be a…

We have paid for the college Illinois plan in full Our child is within 7 years of entering college. Do you think we are safe? I have written multiple state legislatures and the reply is vague. Do you have anything more to add? Terry Says:  The reason the answers are vague is because the law…

Terry, I understand LTC is an important part of financial planning. My children are 38, 34, and 30, are they too young to purchase the LTC insurance now? The premiums are affordable now because younger age, or should they wait until older? Thank you. Terry Says:  At this age, and especially if they have dependents,…

What are your thoughts about Gold / Silver IRA's (i.e. physical gold and silver)? I'm considering moving 4% of my current IRA assets to gold and 4% to silver. Terry Says:  Well, if it's in your IRA, you should do it through stocks, or a gold ETF (symbol:  GLD), or through a mutual fund such…

What are your thoughts in putting money into any of the above funds? Advantages/disadvantages? Terry Says:  Vanguard and T. Rowe Price are two of my favorite no-load (no-commission) low fee mutual fund companies.  Each has a wide choice of funds, and they will advise you-- based on your investment goals -- how to diversify your…

Hi Terry, all these years listening to your words and I finally have a question! Beth and I have 2 mortgages which will be paid in 12 and 14 years. Our plan is to continue working (and saving) for the next 12-14 years, but our current retirement savings is at our number. We have an…