Ask Terry Archives

My husband and I recently met with a financial planner from Edward Jones. We have $100K to invest but don't know where to start. We're not risk takers and approaching 50. He suggested first thing we do is each put $5500 in Roth IRAs for 2014 and then again in 2015. This would leave $78K…

If I add all my accounts into mint.com, is it safe and secure. Please advise Terry Says:  Yes, Mint is secure and encrypted at the highest level. This free tool is available at Mint.com -- a company that is owned by Intuit, parent company of Quicken.  You don't have to worry.  They use encryption that…

Can you recommend a lawyer to design an estate plan for me? I remember several years ago, one estate planning lawyer spoke at a seminar at the Chicago Public Library during a conference you held on money management. Thanks. Terry Says:   Yes, I will do that -- but everyone reading this should remember that you…

Terry, I'm a 66 year old female who is still working with a gross salary of approximately %55,000 a year. I also receive my late husband's social security which is approximately $1750 a month. I also receive a widow's pension from my late husband's employment and that is approximately $850 a month. I owe $28,000…

How do I go about buying gold and/or silver? And is it a good idea at this time? Terry Says:   I've written extensively about that in the past because industrial metals tend to become more valuable in an economic boom.  Gold is a hedge against inflation.  Unfortunately we are in a global slump (note falling…

My mother in law is 82. She receives SS and a not to large pension from several jobs. Is she still required to file Federal and State (CA) taxes? Terry Says:  Well, the simple -- but not completely accurate -- answer is that if her income (total) is below $11,500 she is not required to…

Hi Terry, My spouse is retired. My spouse is always jotting down contact info for reverse mortgages. What are reverse mortgages? Are they safe for retirees needing income? Terry Says:  I have written many times about reverse mortgages.  Used correctly, they can provide a lifetime of tax-free income that you can never outlive -- as…

Do i have to pay fed. tax after selling my HOUSE/ Terry Says:  That all depends on your cost basis.  Each owner (so if you have a spouse as co-owner, that means each of you) gets an "exclusion" for up to $250,000 of profit on the sale of your primary residence! So first you have…

Hi Terry, My husband and I are 50 years old, both if us are self-employed, and we lost our home (and everything else trying to save that home) three years ago in the SF Bay Area. We're currently renting the little farmhouse of our dreams in the Northern California foothills. Is it *truly* possible at…

I live in the s:w side of Chicago . Could you provide a savings institution with the best cd or money market rates. Thank you and have a Happy Thanksgiving Terry Says:  Go to www.Bankrate.com and search under CDs in the Chicago area. But these days it hardly pays to switch.  If you lose even…

Hi Terry, Seven years ago, my wallet was stolen, including my social security number. I shut down all my accounts, filed a police report and contacted the credit agencies to place a hold on my accounts, which is good for 7 years. Now that the 7 years is up, what kind of jeopardy am I…

After 30 years of service to my employer, my position was eliminated. As I continue to seek employment and nearing the end of unemployment's 26 week benefit, I am more concerned than ever that the unemployment numbers are completely inaccurate. I will soon not be counted in the low percentage rate that is touted for…

My traditional IRA matures in may every year. in may 2015 i will be 70 years & 4 months old. I know I must begin yearly RMD when I reach 70 1/2 which is august 2015 but how can i withdraw RMD from account at bank if I am only allowed to withdraw in may of each years? thanks Terry Says: …

I have a friend who does not have a computer. How can she get her annual free credit report? Terry Says:  She should go to the Public Library and ask them to use their computer.   That can be done safely, and she can print it out.  Talk to the help desk there to make sure…

Hello, Ms. Savage. My wife and I were sold $100,000Universal Life insurance policies when we got married, 25 years ago. The cash value is negligible. However, at 57 yrs old, our monthly fee keeps increasing every couple of years. We have a little over $200,000 in retirement accounts and over $100,000 in home equity. As…

My husband took early retirement since his co. Downsize. In two years he has spent all the money including the cd he made. He does have a ss income but doesn't want another job. He been doubling up the second mortgage and this is where most of his money went. We owe more on the…

We are retired for nine years, living on SS and interest funds. So many scary predictions on the coming market crash. What's your opinion on long and short term market? Terry Says:  Here's the thing:  There's ALWAYS risk in the stock market.  That's risk of loss.  Now, you can mitigate this risk by diversifying your…

Terry, I am 66 and retired a year ago. I recently rolled over $100,000 from my 401K into the following. Half into a fee based Fidelity Portfolio Advisor Account and the remaining half into a Vanguard Target Account (2020). The Fidelity account is being charged approx. 1.5%. Family members have told me I made a…

Hi Terry, my son has a part time job at his school. I would like him to open up ROTH IRA. Can you name a few mutual funds that allow start up investing. Most of the mutual funds want $1,000 to open up a ROTH IRA but I want him to get in the habit…

Thank you for taking the time to answer my three questions on required minimum withdrawls from an IRA. If one has more than one IRA is the required withdrawl amount determined by the total dollars in all IRA's or separately by each IRA. Once it is determined how much to withdrawl can one just move…