Ask Terry Archives

I have an IRA CD maturing and would like to know where I could get a better rate?I was getting 1.40% for three years but the new rates are .35% for 12 months, .60% for 24 months, .80% for 36 months, and 1.50% for 60 months. I have part of the money insured with CDARs…

As part of a high school graduation present I wanted to start either an IRA or a ROTH IRA for my son. Which IRA would best? Also what type of investment should we pick? Thanks Terry Says:  Well, you can't start an IRA for him unless he had EARNED INCOME -- that is, income from…

My grand daughter is 21 years old. She has a job as a retail assistant manager. She lives at home. She has never had a credit card. She is trying to get a loan for a car. No one will give her a loan because she has no established credit. Looking for suggestions as to…

How is a pension buyout calculated? Terry Says:  The actuary for the company and the pension fund determines the "present value" of your future pension when making an offer to give you cash from your pension.  Of course, you don't want to take cash now and lose all future growth of benefits.  So they should…

As I get closer to retirement - At this time, I am a full-time employee, (71) years old, but plan to work about (2) more years. I am thinking I will need a financial adviser to help me make the most out of my 401k, IRA and savings. And, provide me a map to get…

I am a 73 year old active female. I keep busy and love to travel. Should I buy Long Term Care Insurance? I am healthy but don't know what the future will bring. I checked into the insurance and it will cost me about $9,000 a year. I have about $500,000 in investments. Is it…

Hi Terry, Both of my parents are living and just sold their home (only asset). How should they invest their money? They will both be living with me, however, we would like to invest wisely for further expense of nursing home if needed. Their financial planner is suggesting an annuity. We do have HCPOA and…

I have been contacted by a a company named "card Services" which has promised me a savings of $2500 if I work with them to consolidate my credit card debt. They have charged me an up front fee but I fear I have been scammed because I have yet to receive anything in writing. They…

how do I get your free personal financial organizer Terry Says:  Just go to www.terrysavage.com and fill in your name and email address in the yellow box.  Then look for an email from me thanking you for signing up and asking you to "click to confirm" your subscription.  Then you'll get another email with a…

Hi Terry I am a social worker and dont make much money. I would like to invest more since i am now 37. I have a 403b at work and only put away 100 per month. I know you talk alot about IRAs and would like to know how to open one, where and how…

Hi Terry, my wife and I are setting up a living trust in order to pass on our estate to our two children and avoid probate. We have an out of state property we purchased with our daughter's FHA where our daughter and my wife and I are on the deed and we are co-borrowers…

  Hi Terry, Can you recommend a reputable gold company I can rollover my $25 401 k; i started out w $48,000 w them now I'm Down this quarter to $25,0000. I'd also like to keep a portion of the gold and invest the rest ? Is that possible? Again can you refer a company…

Hi Terry, I work for the postal service, which was recently a victim of cyber attack. They sent me a letter telling me that my personal info may be compromised. I was injured on the job a couple yrs. ago, and they said my medical info may be compromised. Basically, codes concerning diagnosis and procedures,…

Can a Government Thrift Savings Plan be transferred to a Money Market account? If so, are there tax ramifications? Terry Says:  If you are just trying to get the "safest" option to invest your money within the Government's Thrift Savings Plan, you could transfer into the "G" plan --  which is the equivalent of a…

Hi Terry: I need to use some of my IRA money to pay my children's tuition. Is there any advantage to using ROTH IRA funds vs. regular IRA funds? Terry Says:  Gosh I hate to see you do that!  Will your educated children be willing to pay for YOUR retirement?!!   You're probably considering using this…

what are the legal & financial consequences of "walking away" from your house/mortgage? Terry Says:  Oh gosh, I hate to see you do this!  At a very minimum, your credit will be ruined for the next 7 years.  At worst, the lender could go after you for the balance of the debt -- although I…

Hi Terry, I hope you had an enjoyable Thanksgiving! We were able to get away and visit with our families. It was a lot of driving, but good food and fun. We're letting our HSA grow by not taking qualified medical reimbursements as they occur. We're fortunate that our medical expenses are small and we…

Terry, I recently took a position at the same organization where my husband works. We have two choices for Tax-Deferred Retirement Plans, and both are solid performers (TIAA-CREF and Vanguard). Should I choose the one my husband is not invested in, at least for the sake of security and diversity? Thank you! Terry Says:  I…

I turned 70 this year and have to make my RMD from my 401Kby December. I know I can defer the first one until April 2015. My question is how will my 2015 RMD be calculated. Do I subtract the April withdrawal from the Dec.31, 2014 balance to determine the amount? Terry Says:  Please read…

I have EE Savings bonds for my children (gifts when they were young-either purchased by relatives or money received for birthdays). They are now in their early 20's and have no idea they even own them. Two questions: How are they redeemed? Would it be a good idea to invest the proceeds in a mutual…