Ask Terry Archives

I am going to be 66 in October and planning to take my social security beneit. At this time I am still working full time. My husband is 66 and is retired from the Post Office and is receiving his retirement income less a survivor benefit for me. His Social Security is offset and he…

My grand daughter, age 21, has student loans from 'Direct Loans' in the amt. of $11,000. This loan was made 4 yrs. ago when she was laid off. Being a single mom with a son , she decided to get further education. Because of the stress of not working & found the school to be…

dear Terry, what do you think about the frontline program, are managed mutual funds good for retirement or are mutual index funds the way to go. who is really making money on the investors money? thank you for your time. chuck lazzaro. retired age 63 SAVAGE SAYS: I'm so disappointed that I missed seeing it.…

I'm trying to determine how to best use a $35k SSDI lump sum payment. I am retired age 62 and my husband is 66 works part time. While we file taxes jointly, we elect to use our individual income independently. We do have a mortgage (but good equity) and about $6k in credit card debt.…

Defaulted on IRS installmt contract 33 yrs ago. Am now 72 & owe $39000 in back taxes & fees. Am single, no children, bad credit & no assets other than small SS. Is there hope to reconcile w/o punishment? SAVAGE SAYS: You need an attorney who is familiar with IRS issues. Contact your local bar…

Our Financial Advisor is recommending to my wife and I that we purchase a LTC with a Death Benefit Protection feature. My wife and I are both 55 years old. The cost of this policy to each of us is $75,000. We both feel that this is very expensive and would appreicate your comments or…

I am 70,married,retired and found out 2 months ago i have myloidfybrosis cancer.Otherwise a cancer that affects the blood.Prognosis is poor.Our income is this. wife gets 378.00 from medicare, thats it for her. I receive 4000.00 a month from retirement and social security. I have ins. thru the pipefitters union in Illinois. Both are refusing…

I'm 63, opened a ROTH IRA in 2012, have put in only money directly from me, no rollover or conversion or mixing with any other money. I got a copy of form 5498 from Vanguard, original to IRS. The form records the amount of my contribution, and accumulated growth during 2012. Why does the IRS…

Hi Terry, I am 32, single and a 6th grade teacher looking for some advice. I bought a townhouse about 3 years ago with a $150K mortgage. My net monthly pay is around $3,700 (yearly gross approximately $60,000). After mortgage and other home expenses, I have around $700 a month left to save (which I…

Hi Terry, I am questioning on whether I should pay off my mortgage ($32,000). Currently my monthly mortgage payment is $900 (P&I - 4% interest rate). I am 61, with a 401K and pension available and plans on retiring in about a year. I have around $150,000 in available cash. Other than the typical homeowner…

In which one of your books can I find information on long term care insurance? And do you have recommendations. I remember you did at one time but at that time I didn't need it and I am in my mid-50's and I want to look into this. thanks SAVAGE SAYS: I have been recommending…

I'm trying to determine how to best use a $35k SSDI lump sum payment. I am retired age 62 and my husband is 66 works part time. While we file taxes jointly, we elect to use our individual income independently. We do have a mortgage (but good equity) and about $6k in credit card debt.…

My daughter , who is disabled, would like to take money out of her Roth IRA to buy a house. Are there any exceptions to the 5 year aging rule for Roth IRA's ? Thank you SAVAGE SAYS: I always hate to tell people this, because it means they will take money out of their…

How does a privatized pension work for investment purposes for a person that is in their 80's? SAVAGE SAYS: I? honestly have no idea what you mean by a "privatized pension"!? Please write back and explain. But if you are in your eighties and someone is trying to get you to "do" something with your…

setting up my retirement account, met with a retirement planner, that a WLS radio show wm gieger recommened, however i see on the state of il site, this broker is not regeristered with finra, should i keep looking, do you have any referrals? SAVAGE SAYS: Lots of people call themselves "financial planners" -- but you…

We have retired and sold our business, however, we have a large commercial building on which we still have a mortgage. The bank does not want to continue the mortgage as we are not owner occupied, and so far we have been unable to get a lease in place--the banks want a 3-5yr lease. We…

Hi Terry, This is a question that's been troubling me for six months, and your response will help me see my way more clearly, and for that I thank you up front. I am partially retired (age 59) and rely heavily on the dividends generated by my closed end municipal bond funds. And I do…

Please give a summary of the pros n cons of the retirement advise that involves obtaining a Roth n using proceeds to buy insurance. For a 76 yr old with an Ira but no roth n investments n 100k or so in cash positions what would be the best way to fund a Roth n…

Hi Terry, For the purpose of tracking asset allocation, do I-bonds count as cash or bonds? I

Are low priced stocks that pay high dividends a good choice?Ireally do not understand how this is done. If the stock price is low and hovers at that low price that would give the impression that the company is not a high performer. On the other hand, dividends are paying out profits, how could these…