Ask Terry Archives

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…

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…