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Terry Savage biography
Terry Savage is a nationally known expert on personal finance, the markets, and the economy. She writes a syndicated financial column for the Chicago Sun-Times, …
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eBills are the next generation of handling finances
TERRY SAVAGE: Paying your bills online is only the first half of the personal finance billing revolution. The long-delayed second half of the technology has now arrived at almost every bank website. Electronic bill presentation — eBills — will save you time and energy — and it will save millions of trees.
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Your 401k is not the place to borrow money
TERRY SAVAGE: It’s definitely NOT a good idea to borrow from your 40l(k) plan — even though you’re borrowing from your own money, and in effect, paying interest to yourself.
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Who are the workers dropping out of job search?
SAVAGE: The numbers don’t sound so bad — and may even sound like they’re improving. A drop in the unemployment rate from 8.3 percent to 8.1 percent appears to be moving in the right direction. But the decline in the headline unemployment rate came despite a paltry 96,000 new jobs being created last month. The rate fell because 368,000 more people dropped out of the work force, stopped looking for jobs.
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Stocks climb on European Central Bank’s promise to euro’s future
A combination of good domestic economic reports and a promise by Europe’s most powerful central banker that the debts of struggling countries will be supported by the euro, led the stock market to close at multi-year highs. It was the best finish for the Dow since December 2007, which marks the start of the last recession. For those keeping score, that was well before the onset of the mortgage crisis and the failure of Lehman Brothers on Sept. 15, 2008.
Wake up Corporate America and treat workers better
TERRY SAVAGE: The pendulum has swung too far — and Labor Day makes us recognize the simple fact that business is now destroying its most important asset: talented and loyal workers.
In mortgages, simple usually means more expensive
SAVAGE: It’s a great time to get a mortgage. I’ve been telling you that for several months. The housing market is starting to firm up, with sales and even prices increasing in some areas. But financing a house is not just a decision about interest rates. There are other fees and costs involved, and several ways to deal with them. If you’re not a mortgage expert, you might need help from a good mortgage broker.
College kids & credit cards
Q . My daughter is going away to college and I think she needs her own credit card. She has been able to use one of my credit cards for the past few years, and has been very responsible. But with her own card, …
A back-to-school math lesson about education
TERRY SAVAGE: In this economy, you need to take an entirely different look at college costs, and have a family discussion about what is reasonable. There is no doubt that a college education will pay off over a lifetime of earnings. But that payoff may not beat the debt load and the interest you will pay if you borrow too much money.
NY Mayor Bloomberg: Fix immigration to boost economy
‘America is committing economic suicide by failing to confront the issue of immigration reform,” says New York mayor Michael Bloomberg. And he’s on a nationwide mission to force both Presidential candidates to give specifics of how they will deal with the issue.
Don’t tax Olympic gold medalists or other winners
SAVAGE: As a fitting finale to the successful U.S. Olympic team, the president has announced his support for a Republican senator’s bill to make the winners’ medals, and the cash awards that go with them, free from federal income taxes. It’s hard to make a case for taxing success when it is so clearly the result of personal effort. That should apply to entrepreneurs as well.
Considering an IPO? Do your homework
Q. I have been offered a chance to buy shares in an IPO by my broker. I’m skeptical. I think these stocks fall in price right away. He says no promises. Also he says I pay no commission. So what should I do? A. Great …
When stock market defies logic, think long-term
TERRY SAVAGE: What do you do when the financial markets are upside down? What’s the strategy when bad news seems to be good news, and vice versa?
Mortgage rates make this best time to buy or refinance
TERRY SAVAGE: He (or she) who hesitates is lost! It’s an old saying, and right now it applies to the housing market. Yes, the economic headlines are still gloomy, many are unemployed, and foreclosures are actually rising. But paradoxically, those obvious facts are creating one of the best home-buying opportunities in history.
Negative interest rates are possible
Terry Savage: How low can interest rates go? They can be negative. It’s happened before.
Crop-killing drought will cost you at the grocery store
TERRY SAVAGE: While politicians are still wrangling over the twin deficit dangers of tax and spending cuts, an even more dangerous financial crisis is about to hit the economy: the food prices crisis. The searing temperatures and drought in the heartland of America have already devastated the corn crop — and without any relief in sight, the soybean crop will also be impacted.
Elderly suffer when decisions about their care are unclear
SAVAGE: When is it elder abuse — and when is it an adult child trying to make arrangements for a parent who is losing the ability to cope with the daily activities of living? Plan ahead for who will make your crucial decisions.
Term life insurance offers ‘return’ feature
When shopping for life insurance, understand what a “return of premium” is, what it costs and how it might work for you. The higher cost may be worth it to you.
Obama’s effort to extend tax cuts erases ‘middle class’ money worry
TERRY SAVAGE: Most Americans will save $1,500-$1,600 or more, which should help avoid a slowdown in spending. But letting taxes rise for highest income payers won’t help economy grow.
You can cover long-term care with ‘combo’ products
TERRY SAVAGE: You can prepare for long-term care costs through combination products that use life insurance or annuities to fund long-term care costs. If you have retirement savings that are now invested conservatively in bank CDs and money funds, now may be the time to “reposition” some of those retirement assets to do “double duty” as a source of funding for long-term care.
Long-term care insurance takes a hit
TERRY SAVAGE: It’s happening again. Another long-term care insurance company is limiting the coverage it will offer in the future. While other insurers have raised premiums, Genworth has just announced that it will suspend offering some of its most appealing policy options.
