Terry Savage’s Archives
Below you will find the columns terry has written by date.
Below you will find the columns terry has written by date.
An Annuity that Works for You (MYGA)
Though I’ve previously warned against many annuities, with good reason, this column will focus on one type of annuity that might serve a very good short-term purpose in your financial plan. That product is a fixed-rate multi-year fixed-rate guaranteed annuity – or MYGA. With a term ranging from 3 to 10 years, this insurance contract..
ChatGPT – The Future is Now!
Every few years, something really “new” comes along, sneaking into our vocabularies and our way of interacting with money. Then suddenly, it reaches a tipping point and becomes ubiquitous. I like to keep an eye out for those life-changing opportunities, which mostly revolve around technology. Change is inevitable, and it’s up to us to make..
529 Plans Even Better Now
The best way to save for college for your children and grandchildren is a 529 College Savings plan. And, the recent Secure 2.0 legislation created some improvements on this great product. The tax advantages make 529 plans the clear winner for college planning and saving. Tax Benefits Money saved in a 529 College Savings Plan..
New Student Loan Proposal
A new proposal by the Biden administration would dramatically cut federal student loan monthly payments in half, with monthly payments as low as ZERO for more borrowers, while completely wiping out the remaining balance for some borrowers after ten years of payments. Unlike the previous proposal which involved debt forgiveness, this is merely a generous..
Open the Envelope, please!
Some bad news is coming in the mail. Be prepared to face up to it immediately. Open the envelopes – the credit card bills and the brokerage statements. The card balances likely total more than you expected. And the brokerage or mutual fund statements likely show less than you hoped. Here’s what to do about..
Money Tips for the New Year
1. Get Organized –That’s the most important thing you can do to start the new year. You can’t go forward if you don’t know where you’re starting from! Lists are important, as are files – whether on paper or on your computer. A disorganized mind will destroy your financial future. To help you in this..
Costs Add Up
How much did you pay in investment costs and fees last year? If you’re like most investors, you don’t even have a ballpark idea. And those costs can add up – or better yet, subtract out – of your long term investment goals. This is a perfect time to uncover the hidden costs you paid..
Count Your Blessings — and Share Them!
The shopping rush is over, and holiday dinners digested. This is a perfect time to sit back and count your blessings. And share them! Expressing gratitude for your own blessings does not mean that you don’t have any problems -- whether financial, emotional, or family. Everyone does. But if you have the luxury of reading..
Secure Act 2.0 for Retirement Savings
Congress gave American workers a last minute holiday gift – a set of new incentives to save more for retirement. Passed just before Congress adjourned, as part of the huge Omnibus spending bill, the Secure Act 2.0 increases limits on many retirement plans and creates a few new opportunities for workers to become more financially..
Holiday Credit Card Traps
Everyone likes a little recognition – a sense of being known and appreciated. Perhaps that’s why I must admit I get a little rush when I’m shopping online, choose PayPal to pay, and I instantly get a message that says: “We recognize you on this device, Terry. You don’t have to sign in!” That always..
Rollover Now
If you have several IRAs or leftover 401(k) plans from previous employers, this is a perfect time to consolidate them in one IRA rollover account. Not only will this simplify your financial recorded-keeping, but it will create an opportunity to access one of the best and safest investment opportunities for your money. So don’t let..
When to Take Social Security
Social security decisions are among the most complex and impactful choices seniors must make. The most critical decision revolves around “when” to take your benefits: “early” (at age 62 when you get reduced benefits); at “full retirement age” (around 68 now); or delaying until the last possible moment (age 70,when you must start taking benefits)...
Year-End Tax Planning
The steps you take in the month of December could save you tax dollars next April. Now is the time to take the steps that can reduce your tax bill for 2022, and lay the groundwork for a financially smart New Year. Taxes and Deductions: For 2022, the “standard deduction” jumps to $12,950 for a..
Holiday Financial Gifts for Grandchildren & More
Every year around this time, I try to make helpful holiday gift suggestions for the younger people in your family. Toys, clothes, and digital games rate highest with young people. But the holiday season is a great time to spark new interest in money matters – or, at the very least, create a gift that..
Know Your Money Personality
Instead of focusing on the wild gyrations of the stock market, this is a perfect time to look inward and understand your personal reaction to the headlines. And the stock market certainly has been making headlines in recent weeks. Instead of the feared October bear market, there was a dramatic rally. But the real headlines..
Crypto Crash
We have now witnessed the collapse of the largest (so-far) 21st century "tulip bubble" as the FTX (crypto) Exchange collapsed -- taking down the value of the best known crypto-currencies, along with the equity of some very sophisticated players and the wealth dreams of small-time investors. When it was revealed that the FTX "exchange" was..
Housing Recession
Americans may be excused for wondering where this recession talk is coming from. Economic growth (GDP) turned nicely positive in the third quarter. The stock market has rallied, regaining some, though not all of this year’s losses, on hopes the Fed will declare victory and ease up on interest rate hikes. Consumer confidence dipped a..
Continuing Care Retirement Communities
One of the most difficult choices retirees must make is where to live in retirement. By this stage of your life the family home might be too large and burdensome. Downsizing is one option. And these days more seniors are turning to Continuing Care Retirement Communities (CCRCs). But these communities offer a variety of costs..
I-Bonds: Everything You Must Know
Updated 05/01/24 The new rate for Series I bonds purchased after May 1, 2024 is 4.28%. That includes a new higher base rate of 1.3%, which will stay with the bond for its entire lifetime. Future inflation adjustments to these bonds will be made on top of that 1/3% fixed base rate. Series I bonds..
Medicare Open Enrollment — The Basics
Here we go again. It’s the annual Medicare Open Enrollment period. Making a mistake could impact your healthcare and its cost for the rest of your life! You must do more than listen to enticing television commercials, and instead use the Medicare.gov website to search out your alternatives. Here are some of the choices you..
