Ask Terry Archives

My husband "retired" in 2003 from the Cook County State's Attorney's office and receives a pension from the County.  He has worked in private practice since then.  How do I determine  how much his social security benefit will be reduced when he retires at age 66-1/2?  A second question:  Since he will receive a reduced…

Terry, I am recently divorced and am earning about 28,000 a year in my job. i received all my ex-husband's 401k as a divorce settlement -- it amounts to about 32,000, which I have not yet paid taxes on (but will in 2014). Currently I rent, and my rent is as cheap as it can…

For someone wanting safety and better yield than current insured CD's, are I-Bonds and Tips a better investment?  It is IRA money from recent matured CD's and our ages are 54 and 58.  When I looked in to them, the small inflation adjustments of the past years didn't seem to reflect the cost of living…

Terry, both my wife and myself look forward to your advice and consider you as our goddess of financial planning. We are full aware of your encouraging waiting to take social security at its maximum. I am 61 years old (62 in august, 2014); retired with $13K annual pension from AT&T; taking 4% from my…

Will I be penalized if I hold Savings EE bonds past their maturity date of 30 yrs. ? Thank you. SAVAGE SAYS: All Series E bonds, and Series EE bonds that are older than 30 years, have stopped paying interest.  There is no penalty for not cashing them in, but you might find a better…

Where is the 4-page form to give my family at Thanksgiving? You mentioned it last night at the Economic Club of Southwestern Michigan. Thanks. T SAVAGE SAYS: Go to my website, www.terrysavage.com.  When the yellow box pops up (make sure popups are not blocked) fill in your name and email address.  That puts you on…

Terry, can a parent put away money for an adult child via an ira or Roth ira directly or do the parents have to give them the money to invest? We are interested in helping our kids but are unsure of what options are open to us legally. What about for a grandchild? SAVAGE SAYS:…

Terry: I need your help! When you spoke at our event in Valpo a few years back, a client thought you were against variable annuities. His wife has a large 401k plan and I am convinced that this account should be in a VA with an income guarantee. They are both 62 and the majority…

My mother in law recently met with a rep from Chase Bank regarding opening a Conservative Money Market account. She was told that if she invests $100,000.00, they can do a managed market account. There would be a yearly fee of 1.144% yearly for managing the fund. She can opt out after one year with…

I am looking for an inexpensive insurance for part D. The only medication I take is the generic form of synthroid. My insurance is going from 43.90 to 56.60! A month......I am 70 and in very good health.....this insurance cost is getting me sick. Can you advise me please..... Thank you very much... SAVAGE SAYS:There…

I live in a 24 unit condominium in Chicago. Our declaration specifies no renting. During this past year, our board took a survey with the hope of changing that clause. When they did not get the results they wanted, they allowed an owner to rent (and denied they new anything about it). This owner went…

Hi Terry, I have much respect in your expertise and I would like your thoughts about investing in bonds. I am retired and have 40-45% of my portfolio in Vanguard bond funds. I have focused on short and intermediate term bonds (avoiding long term funds) and as you know all bond funds have declined in…

HI TERRY, IT'S OCTOBER 2ND. I SAW YOU ON THE NEWS THIS MORNING ON WGN. PLAIN AND SIMPLE, SHOULD I GET OUT OF THE STOCK MARKET WITH WHAT'S LOOMING ON THE HORIZON. SINCERELY, JOE SAVAGE SAYS:Plain and simple, I never make a recommendation without knowing a person's complete financial situation.  And if you plan to…

I am receiving $891.00 per month for my social security disability and 53.00 for food coupons. As you can see I am not receiving anything else. Deducting my monthly bills I always end borrowing money to make ends meet!. My bills are: 1- $ 664.00 For the apt. Which I own 2- $ 144.00 maintenance…

Do you recommend to invest in gold to hedge future inflation? SAVAGE SAYS:I have always and consistently recommended owning some gold, or share of gold mining companies, as a small insurance policy against future inflation.  With all the money the Fed is "printing,"  future inflation is a distinct possibility.  But gold is also a volatile…

Ms Terry Savage Oct 8 2013 Thanks for all the years of your columns in the Times. About the only reason’s I continued to buy the Times is because my wife has an addiction to the SUDOKU PUZZELS. (had to keep buying the next days incase she could not solve) I then found the link…

Mr. Buffet moves some money out of stocks when he feels the market is overpriced, and then puts the money back in when there is a downward correction. Should this re-balancing be something a middle-aged, middle income household should do periodically (no more than once or twice a year) with their mutual fund account(s)? SAVAGE…

Terry, what does James Stack think of the stock market and its next direction? SAVAGE SAYS:Stack hasn't given a sell signal -- yet!  For more info and to subscribe to his newsletter (which I think is the very best one out there for stock market guidance) go to www.InvesTech.com.

Hi Terry, I'm 62yrs old, retired, collecting a small pension and social security. Any suggestion on tax shelters? I don't want to pay anymore taxes (than I have to) to the feds. FYI....I do not own a home and I have about $15K in a standard IRA. Thank you...Ruth SAVAGE SAYS:You don't need a tax…

Hi, my husband and I are looking into LTC insurance. I am 59 and he is 62. What type is better? So far, we have had quotes on one that requires a large amount up front, earns interest, can be cashed in after 11 years by us, but once used we cannot cash it in...but…