Ask Terry Archives

My kids, 21 and 18, worked over the summer and want to put $5500 and $2900 respectively in Roth IRA's by 4/15/14. I thought Fidelity Spartan 500 which is an index fund of the S&P 500. What do you think? Terry Says:  Good idea.  But you must be sure that they received tax documentation that…

Is the interest tax exempt I am seeing conflicting statements regarding this. Also removed money from Roth IRA prior to 59 1/2 that was started with nontaxable dollars in 2011 for dependent child tuition expecting to NOT pay 10% penalty but my HR Block tax software doesn't list dependent Child college tuition as an exception.…

As a result of the lack of respect for money and its stewardship, I have nothing saved. There are, however, no big debts (school loans, car pmt, mortgage etc.). I am 64, single, have no children and my medical is taken care of through the V.A. Hospital program. Monthly net income is composed of Social…

My wife and I met with a certified financial planner. Right now we have about $390,000 in a fixed 457 (b) with the city of chicago deferred comp getting 3.22% in the last 12 months. The planner offered different plans ranging from conservative to aggressive growth with a 6% guarantee on my investment. It sound…

Terry, Can a person you Bright Start monies to pay student loan notes after the child is out of college or does it have to be used directly for tuition/books/etc. at the time they are in college? Vickie Terry Says:  Sorry, but paying off student loans is not an allowable tax-free use for a 529…

I expect to retire within a year and relocate across the country (my retirement date is flexible, and I will probably stop working when I have a contract for sale of my home, after I list it, possibly this coming summer). I own a home (in Virginia) and expect to buy a home in an…

Is gold a good hedge against the dollar? Sources are saying that the dollar will be useless and that having gold will keep you protected. I was in the stock market but anxiety about it going up and down was too much for me. am 72 and will do okay withoout the income from the…

Terry, I've read that the surest route to bankruptcy is being a "single mom no child support. HUD rental assistance funds frozen for eight years. grandparents picking up the child support until retirement savings almost gone. Where can the kids get regular monthly rent assistance to keep a decent roof over their heads in a…

Hi Terry, We need to get a new financial person, I meet Jim Flanagan of Bentron Financial Group, Inc. at his office regarding taking early retirement (I'm 61) because of no job for 2 years. He looked at my rollover IRA accounts which have not been doing very good for at least 10 years. What…

I rolled my 401 K over to my local State Employees Credit Union when the stock market starting its down turn. My money is in their money market which is currently an Interest of 1.5%. I really do need a better return but it do not know to invest in at this time. I will…

There is a lot of indicators about the government using our IRA'S and 401k's to support there agenda "sharing the wealth". Would it be wise to get the funds out of the tax deferred account before the government gets ahold of our money? Thank you for your help Terry Says:  I understand your concern, but…

I am 71 and a retired Federal Employee with a CSRS pension and I am still working as a consultant. I must take required minimum distributions from my SEP IRA and from my Federal Government Thrift Savings Plan. What is your opinion of the TSP? I have about 250,000 in the SEP IRA and about…

In light of hacking and credit card data theft, do businesses today take travelers checks? We'd like to use these instead of credit cards while traveling in the U. S. However, before purchasing them we'd like to make sure they will be accepted. Terry Says:  I think you're living in the past!  Traveler's checks are…

State of IL said I had missed first payment of estimated tax for 2013. They want front and back copy of cancelled check. Bank will charge me $23 for this copy. State of IL lost my payment, should they pay the fee. I'm 30 year customer of the bank. Terry Says:  I think you should…

I'm fed up with Quicken's personal financial specifically dealing with stock transactions--spinoffs, stock dividends, etc. Would you suggest software--either freeware or payware--that can handle these transactions better than Quicken? Terry Says:  Yes, I understand your frustration. Quicken is really not set up best for frequent traders.  Or for complex investments, such as stock dividends.  I…

an mb financial rep recently recommended a fixed annuity called secure term choice fixed annuity II. Since i know nothing about fixed annuities, i would like to know where to start to determine if this is something i should consider. my other investments include cd's and a small amount of stock. Terry Says:  With a…

Terry, I live in Cook County Illinois. At what age does the Homeowners exemption for your primary residence take affect? Are there other exemptions? Does it matter if one spouse is not of retirement age? Thanks,Ray Terry Says:  That's a good question, and the answer is a bit complicated because there are four different programs…

I have heard that Credit Karma is a reliable web site for a free credit score and report. I have not heard you mention them. Your opinion please. Thank You Terry Says:  Oh, but I have mentioned them, and recently.  Credit Karma is an excellent site, free (you don't have to sign up for even…

Very much afraid, after a withdrawal request for my money since numerous contacts, employees valic annuity including management, have lied to me and failed to give me my money. Is all lost, anything i can do? Terry Says:  I'm surprised to hear that, and quite sure there is some miscommunication.  Pls send me an email…

I am 70 years old, unmarried and no children. I have a mutual fund with TRowe Price called Summit cash fund, a money fund preserving capital and liquidity. As you can see I am not a risk taker (stock market). I am not comfortable with this fund since there is no FDIC guarantee of my…