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Pay Off Student Loan Debt Faster

MoneyWise / Rob West and Steve Moore
The Truth Network Radio
June 26, 2020 8:03 am

Pay Off Student Loan Debt Faster

MoneyWise / Rob West and Steve Moore

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June 26, 2020 8:03 am

With $1.6 trillion dollars in outstanding loans and a high default rate, experts say the student loan industry will be the next financial bubble to burst. But you can avoid your own personal impact by taking steps to minimize borrowing for education and accelerating payments on your existing debt. On the next MoneyWise Live, hosts Rob West and Steve Moore explain how to pay off student loan debt faster. That’s all coming up on the next MoneyWise Live at 4pm Eastern/3pm Central on Moody Radio.

Rob West and Steve Moore
Rob West and Steve Moore
Rob West and Steve Moore

Many experts will tell you the next financial bubble to burst will be student loan debt with $1.6 trillion in outstanding loans of more than a 10% default rate. That's an easy prediction to make but you don't have to participate.

Take steps to minimize borrowing for education and accelerate payments on your existing debt, financial planner and teacher Rob West tells us how today limits your calls and questions on anything financial at 800-525-7000 800-525-7000. I'm Steve Moore paying off student loan debt faster. That's next. Today I moneywise line around 1.6 trillion with a T is a whole lot of money. Oh why do you suppose this mountain of debt has grown so high so fast. Well, there's an old saying in economic Steve and that is what you tax you get less of what you subsidize, you get more of the federal government makes it easy to take out student loans, but trust me there's nothing easy about paying it back, which could you take take you. I should say 10 or 20 years, perhaps even longer right and something like a 44 million Americans now have outstanding student loans with an average debt of over $35,000 but we want to help her listeners today to become nonparticipants in student debt. So where we start well. First and foremost you want to minimize borrowing to rephrase another old saying a penny not borrowed is a penny earned. So what you don't borrow for education you have to say that we, of course, like the 529 education savings plan for this. We talk about it often. I would encourage parents to start one for each child as early as possible. Another way to minimize borrowing is to be extremely frugal while you're in school. As we said federal loans seem like easy money. So there's a temptation to over borrow for living expenses that you want to keep your lifestyle as frugal as possible while you're in school. Good way to do that is memorizing Proverbs 22. Seven.

You know it well. Steve the rich rule over the poor, and the borrower is slave to the lender trade fair enough.

But if I already have student loans. How do you recommend we pay them off faster so it doesn't take 20 years while in obvious ways by paying more than the minimum payment that does two things moves up the date when your student loan debt will be paid off and it reduces the total amount you'll have to pay an interest.

But you have to make sure that your extra payments are applied to the principal of your loan and not simply applied to next month's payment yet just like you would when paying extra on your mortgage okay, got it. What's next you well them. Yeah, the next option can save you a lot of money and interest.

But you have to be careful with it.

You can refinance your federal student loans with a private lender, a private fixed interest rates are now as low as 3 1/2% and that's lower than on most federal loans.

But here's what you need to be cautious and we talked about this before as well.

If you refinance with a private lender you'll give up certain advantages of federal loans, like deferments of forgiveness programs, income-based repayment options. All of these things are available for federal student loans and you need to think ahead as to whether or not you want that option in the future. Now, if you decide to go with a private lender look for one that offers a discount when you sign up to have payments automatically debited from your checking account that could actually save you as much as a quarter-point off the interest rate okay good to know what else. Well make a commitment to put any extra money that comes your way toward your student.

So for example, tell family members that cash would be appreciated for birthday and Christmas. I can tell them it will have a multiplier effect because it will reduce the amount of interest you have to pay on your student loans. Even a small amount will have a big impact over time.

Okay well there goes socks and extra pair of underwear to give me cash.

Mom and dad about something outside the box when they have their okay going to your boss and asking for help you in recent years, Steve. Some employers started offering assistance for repaying student loans as a way to attract and keep qualified workers, not employers now can make tax-free crop contributions of up to $5250 per employee each year for repaying student loans. That's pretax money so it won't raise the employee's gross taxable income and some companies are catching on to this and providing it as an incentive to write what about any federal programs to pay off student loans faster anything other.

There are several some government employees can get up to $10,000 a year through the federal government student loan repayment program, nurses and teachers can access the nursing education loan repayment program and teach for America and if you're working in the public sector you can get help through the public service loan forgiveness program you need to know the parameters, because you gotta follow them closely in order to qualify, but if you do, it can be well worth okay. That's great information and thanks to our researcher Jim Henry for a human's job today I will have links to all the things we just mentioned in our show notes for today 800-5257. Would you like your life to be infused with joy. Would you like to interject an internal dimension into even the most ordinary day on the Randy Alcorn says you can you discover the treasure principle and a concise powerpack style is newly revised and updated book offers a six step plan.

Finding the pleasure and eternal rewards of the treasure principle what you discover. Life will never look the same. The treasure principle is available when you click the store, but moneywise if you need investing guidance, you probably want help that's grounded in God's work. The approach taken by sound mind investing since 1990. Semi has helped tens of thousands of Christians acquire wisdom and confidence in their investing investing experience how much you have doing that you can learn to be in good will still carry out investing more information about SMI and its approach to financial wisdom for living well is available online at sound mind investing.the English writer Charles Lamb had a biblical perspective on good he wrote the greatest pleasure I know is doing good deeds secretly and haven't found out by accident.

This sounds like the Council Jesus gave to his followers told him not to do their good deeds in public in order to be rewarded by the praise of men. Instead, Jesus said good deeds in secret and let God reward you in his time. Truthfully, all enjoying God is far more meaningful and long as David Jeremiah encouraging you to get on the discover God's reason is driving life started returning home today. And if that is robbing you of Freedom and peace of mind. Christian credit counselors can help where nationwide nonprofit counseling organization has helped over 3000 individuals in the last 27 years get out of credit card debt percent faster while honoring that debt and phone to learn how Christian credit counselors can help you visit Christian credit Christian credit counselors not or call 800-557-1985 just hanging out on this wonderful day that the Lord has made. Thanks so much for being with us today with saving giving getting out of debt, managing what you have, or investing what you have were here to discuss it and help you with it.

Here's our phone number if you'd like to speak with Rob West 800-525-7000 toll-free jotted down. Give us a call 800-525-7000 now's a great time to call because we have some open lines and Rob with your permission will jump right in. Okay that's a great all right that's got to the windy city Chicago, Illinois hello Renée, thanks for holding and what's on your mind's or McCauley appreciated have a backer protection country where we are carrying should be obligated to pay for education, higher education, I've been an educator for over 25 years, putting several apparent into severe back one perception come from a house Illinois if you're forced parent, your kid can take you to court and you will be obligated to pay for their style for their higher education meeting.

I believe it from freshman year until they graduate with a bachelors degree yeah yeah well I certainly appreciate where you're coming from there and I could certainly agree with you, you know, I think, is for many families it's just kind of a common practice that they think well now we live in Americans, our kids should be able to get a college degree and the other not necessarily going to be able to pay for and therefore we need to assume that burden I just don't think that's necessarily the right choice for everyone.

I think it's a should be something that should be's consider prayerfully starting with what is the right path for the student is it's a four year degree. Is it something else depending on how God has wired them and where he's calling them. I think also what we mentioned in the opening topic here today was the ready access to loans has almost kind of in the midst of our you know monthly payments.

Culture has just become accepted as well.

I just am going to borrow and that's just the way I'm gonna pay for this and I think we need to guard against that thinking as well, especially given the incredible run-up of college tuition prices. You know the college tuition inflation as well. Outpaced regular inflation of absolute numbers in the last several years of 8% or more and the other minis that are calling for college tuition perhaps to be the next bubble. So I think we need to be on our guard there and because the federal government has made it so easy to get these loans and so often not only parents are becoming strapped and it's really hindering their ability to save for the future, which by the way, you may be able to borrow for your kids college you can't borrow to fund your retirement in that season of life where you perhaps redirect your time and energy to something else and you're no longer earning a paycheck because maybe you can't. And that you therefore forsaking one for the other. I think were putting ourselves in a real difficult spot in terms of our ability to save the future. So what's the answer to all that well.

I think it's it's several things number one it's prayerfully considering what portion of your kids college you want to take, if any, and if so if you do want to take some prey through that early and communicate that early so your kids know what they're going to be expected to be responsible for that's the way my wife's mom handled it. She let my wife know very early on that if she wanted to go to school. She was going to need to pay for it and they turned their living room into a college scholarship factory applied for hundreds of them, and she paid for all of her college on her own.

She was a great student, but as she did that so think clearly communicate expectations early. Number one, number two, but don't just assume there are other ways to pay scholarships, grants working on campus. Perhaps part time I was a resident assistant then had all of my room and board covered guilt while I was there at school.

I ended up becoming the station manager of the radio station. My senior year and that helped you so.

There are other ways to pay for school, taking advanced placement classes in high school, so perhaps you can get some credit so you can reduce the total number of hours you have to take once you get there going to a two-year school for the first couple years, and then transferring is another way not to mention just really buckling down and saving in the summer so I think we gotta get out of that automatic mindset of well though. Just be alone that I can take advantage of and that'll take care of everything and really look at each situation based on how the Lord is leading how God is where your kids what your financial ability is and then put the plan together accordingly. So I don't have the silver bullet answer Renée but hopefully that gives you some some thinking and and as an educator yourself. We appreciate hearing your thoughts on that. Renée and of course Robinson you know it's a different generation than I was 25, 30, 40 years ago. There's also peer pressure today among parents and if you look around and you are the only couple not helping your kids through college, you start to feel a little weird yourself and start second-guessing will maybe were just not generous people, or maybe all of our kids or whatever, but that is something that every couple has to work on the room while that's exactly right. And I think we need also look at what the degree is that the child is pursuing and if you are thinking about taking on debt have a reasonable expectation of what that starting salary would be and therefore what are the prospects of paying it back in a reasonable period of time. You shouldn't borrow more than the first year's salary in full. In my view, in total for your student debt.

Also, I mentioned your memories to research worse today.

Looks like he was able to put his finger on what Renée was talking about.

Looks like Illinois law once allowed children to sue parents for education expenses but it was a part of the divorce settlement where one parent agreed to do something and they didn't and that has been abolished, so perhaps that's that's no longer a factor, but I think Renée's bigger point still holds true in great information.

We appreciate that Jim give Jim a raise Rob.

He's just a meet early into the program. He's killing it. He's just making it happen so either you if you'd like to make it happen is the phone number 800-525-7000 Tampa, Florida Amanda, what you question for rep. 529 American crime are our children.

Air every one credit card and now from pre-k to get. I like Kevin and Eric 529 wondering why it going to look like Derek to go to college. I made it on the online inflation rate might be lower work getting a payment plan like the 529 America pre-k. I thought appreciate or yeah well Amanda. I like the fact that you're starting early and I do think it warrants implanting to make sure you don't over save and I think working have to watch what happens with college tuition over the next five and 10 years just to see you.

What are those longer-term trends I think coronavirus accelerated some of the trends that were already happening. And of course one of those was the higher education move to more online education will see whether that'll play out will also watch and see what can happen with the cost of college. The challenges these universities that have all these gorgeous campuses with phenomenal buildings that it requires a lot of money to keep all of that going and maintain so there's a certain limit as to how much those prices can come down without seeing a number of these universities closed bottom line is it's not going to be cheap no matter how you do it and so getting a leg up by saving in advance is a great idea. We love the 529 plan. Given that you're in Florida. Amanda, you don't have a state income tax really have the option to go anywhere in terms of your 529 and even though you're already in the American funds plan and I don't remember which state that is you could stop that and perhaps start another one. So here's what I would do I go to saving for run through their tutorial and calculator and bill actually based on your specific situation of value. Evaluate your plan versus all the other plans in the country that you can choose from and give your recommendation, so I'd start there, but I wouldn't automatically flip over to the Florida prepaid is good is that is I'd rather you invest just the way you are, but do it in light of a plan that with the goal so you knew you know ultimately what you're working toward that to you and your husband and I thought Amanda, thank you very much for calling in today with the pause for a brief break you listening to moneywise with Rob last only combat.

Charles and Helen both have questions about their 401(k)s to see if we can help them.

This is minimize life God hears a great deal more about our money than most of us imagine Jesus is more about our use of money and possessions and about anything else, including both heaven and hell in managing God's money, author Randy Alcorn breaks it all down in a simple, easy to follow format that makes it the perfect reference tool if you're interested in gaining a solid biblical understanding of money, possessions and eternity managing God's money is available when you click the store moneywise click and start thinking/doing here is a list of rules will ever assist your freedom never happened. Never happened, no person, not just the legal code can fill not my spirit to Barnett's compulsive dealt with for years. He got everywhere you been a strong no freedom by keeping cholesteryl that can keep what we know everything today. We cannot hears prayers and support this program to request states you text by 7682/money and life run on the same track. Unfortunately, sometimes it seems like your money is heading in a different direction from your goal in never enough three keys to financial contentment. Author Ron blue helps you to break down all your financial options to a basic floor and then shows you how to keep it all chugging along in the right direction on the same track never enough three keys to financial contentment available when you click the store and we hope your day is going well. Thank you so much for turning in today. Our phone number 800-525-7000 that you have the money related question today for Rob West continue on by going to the St. Louis area hi Charles what are you thinking about today program. I year ago that you hear that you know that all now or what about dollar I got all the company about I doubt it came up. I I I hear what they're like, you know you dear shirt, so therefore we can't understand correctly is a previous employer right that you yes and you okay yeah so you can't move that out until you separate from the company. So really what you're left with is making sure that you have the proper allocation among the investment choices inside the 401(k) so every 401(k) based on who the plan administrator is in the plan make up will have a listing of various investment options. There generally just mutual funds inside that 401(k) they'll usually have some target date funds where you can you know the fund based on your expected would retirement date and then it will automatically get more conservative over time more aggressive know as long as you're 10 years out from retirement and then they'll be some specific funds. Probably a cash fund, a bond fund that kind of a value fund and more of a growth fund and note the few things in between that some of them have quite a long list as well. And so there be a number of options so really what you want to do is in light of your goals and objectives your age, your risk tolerance you want to make sure that you are taking a look at that or somebody has every six months. Certainly every year just to make sure that your position properly and that you're not overly aggressive or overly conservative just kinda given your timeframe and time horizon for when retirement might be down the road. So if you're feel good about doing that yourself.

You can certainly do that. If not, I'd probably call the plan administrator. The HR department and say ask if you can get connected to somebody at the company that administers the 401(k) so you can get some advice and they'll readily give that to you.

Just give it a once over and perhaps I give you some counsel on what would be the best strategy for you given your agent and so forth.

So I think that's where you need to go from here. But you're right. You can't move that money out into you separate thank you, Charles. We appreciate that question today.

Let's move quickly to well Chicago and hell in which a question for Rob West hi Paul, I have all the current company managing that magnate can have addictive at the chance America financial company did you kill a candidate can manage that all IRA anything happened next may become an EA bad for not getting down.

I don't know that that's the way this very good hell if you don't mind me asking what you have. Roughly in this 401(k) 200 okay and so you've already connected with an advisor at a company I think I heard you mention one of their recommending your role into an IRA and then they would manage it for you.

Is that right now. Why did night Our Employee at That Use the Chance America Financial Company Daisy Kayden the Debt for Different Option UIC I Six. Here's What I Would Do Helen. I like the Idea at This Point, Especially Given That You Don't Plan to Touch This Money, but It Does Need to Be Managed in Such a Way That Is It Consistent with Your Goals and Objectives Don't Want to Take Any Unnecessary Risk at This Point, You're Not Trying to Beat the Market You're Trying to Get a Good Rate of Return.

So This Money Can Grow but Also It Will Be There for You down the Road If You Needed to Supplement Your Income or You Needed to Help You Pay for Long-Term Care or Whatever You Might Have. Not to Mention Any Giving You'd Want to Do Now or in the Future and Passing It on to Harris or to a Ministry at Your Death, but Regardless Is a Steward of God's Money. We Want to Be a Good and Wise Manager and That Includes Getting a Proper Return Consistent with What You're Trying to Accomplish. So Here's Where I Would Go from Here. I Would Go to Our Website Moneywise Click on Find a C KA That Stands for Certified Kingdom Advisor Put in Your ZIP Code. You'll Find a Big Long List There in Chicago. I'd Interview Three. These Are to Be Men and Women Who Are Financial Professionals with a Long History and Experience, but They've Also Been Trained to Bring Biblically Wise Financial Advice That Really Specialists in the Biblical Worldview of Professional Financial Decision-Making. Find the One That Best Fit for You and Then Perhaps Role into an IRA so It Can Be Managed in a Way That Works for You, Helen. We Appreciate Your Phone a Phone Call Today.

We Wish You the Best. Have a Great Weekend. We Come Back and Speak with Claire about an Investment Program for Window. This Is Moneywise Live, How Should We As Christians Think about and Testing. What If We Could Invest Our Money in a Way That Aligns with What We Believe That Eventide We Believe It Is Possible to Love God and Love Our Neighbor in the Very Practice of Investing We Design Investments for Performance and a Better World so You Can Invest for the Future with a Sense of Wholeness and Purpose.

We Call This Investing That Makes the World Rejoice. More Information Is Christian healthcare ministries enables believers to meet their healthcare costs affordably, biblically and compassionately.

It's not insurance but a voluntary cost-sharing ministry based on the biblical example of Christians sharing each other's needs and members are defined under the law for not having health Christian healthcare ministries might be your health cost solution call 800-791-6225 or visit CH This is more moneywise live in this universe of the week three. Therefore, rid yourselves of all malice and all deceit and slander of every kind like new born babies crave spiritual milk, so you may grow up in your salvation you have tasted that the Lord is that's first Peter 21 through three radial verse of the week that affect our lives. We need to see them through God we gain perspective by reading the Bible every day today and the word is a daily devotional from any Bible Institute proclaims the truth of God's word reflections on, and insightful article questions about the Bible and living your life in Christ find out how you can have today and where today and

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Find it all in master your money by Ron blue available when you click the start button moneywise to work a federal judge's blog New York state from enforcing coronavirus restrictions limiting indoor religious gatherings to 25% capacity when other types of gatherings are limited to 50% judge Gary Sharp acted today to enjoin Gov. Andrew Cuomo New York City Mayor Bill de Blasio and Atty. Gen. Leticia James from enforcing some of the capacity restrictions put in place by executive order to contain the spread of the virus. Texas Gov. Greg Abbott scaling back restaurant dining in his state the moves of the most dramatic reversals yet is confirmed coronavirus cases surge Texas has reported more than 17,000 new confirmed cases in the last three days stock sharply lower. Today the Dow is down 730 points. The NASDAQ was off 260, this is SRN use something new and exciting want to tell you about it some magazine in reality magazine that will be delivered to your email box on a monthly basis and Rob, we have the addition number two coming out shortly and it has to do with summer marriage, family, finances, summer activities, things like that right but exactly right. The theme for this summer versus moneywise he magazine is the moneywise family and so were dealing with what you need to know and prepare for financially before you have first child questions you need to ask if you're in an engaged couple. And you know June is wedding month Stephen so this is a great opportunity.

Thinking about what God has for you and your new marriage financial. What about the communication you were featuring a new podcast that you and I recorded with Chante felt on.

Basically, she did a groundbreaking three year study with her husband Jeff on marriage and money called thriving in love and money and really uncovered some fascinating things that can help you have better communication around money in your marriage.

All that's in the moneywise he magazine so moneywise Click on sign up, give us your email address and will be sure to get that to you at no cost to sign up for your free subscription is moneywise.ORG and yeah Rob this week and I'm sure sure there will be millions of June weddings this weekend. You know what that means is going to be a lot cake yes. You and you like white icing. I do like the one icing the chocolate cake with a white icing do it for me just fine. Thank you Chester for Missouri hi Claire, thanks for your patience. What you question what I wanted program K-3 and all the people that are involved in your hair that it's very sweet and I pray a lot and want to know that I heard on you program up in an organization really say that I don't I keep it all liquid my CD and whisper like elderly elderly pre-you and associate were very impressed with the targeted nation very state that you no clear first Melanie to say thank you for being a faithful listener. Thank you for being a prayer warrior to infer lifting us up before the Lord, that means a lot, you know I'm not recalling specifically what you're talking about in my antenna usually goes up pretty quick when somebody says the word safe and investments and good return and senior citizens. Those things usually don't always go together very well in the sense that you know there's been a lot of scams that have made their way through the local church is been a lot of people that have been duped out of a lot of money around court." Guaranteed investments which there really is no such thing, unless it's US government backed and so I'm not recalling what you're what you're speaking about. But what I would just say is this, you know you I think you've always got a start as a steward of God's money and saying, where is the best place for me to get a proper return on my money take a proper amount of risk so I can accomplish my God-given goals and objectives I can maintain the lifestyle joy. God's called me to I can give as God leads to the local church and to those that are in need around me that I can have something for the future because I don't know what the future holds only the Lord does so. We trust him, but we should be savers and we should be diligent in that and we we know the rising cost of healthcare in that season of life is challenging for many. And so that's why they want to the best of their ability to be saving and they want to get a good return. Even in the retirement season of life where God is redirected you away from full-time work, perhaps to something else been able to invest properly so I don't think there's ever any replacement for just good vanilla flavored investments and here's what I mean by that, not overly complex. Not something that you don't understand, that involves a lot of bells and whistles but just really diversifying your assets among cash for at least six months to a year so you have liquid reserves if possible among what you're doing, CDs, and high quality bonds in treasuries and then for a portion depending on your age and whether or not you're living on the money I perhaps some very high quality investments in stocks. Maybe some dividend paying stocks through mutual funds or ETF's, or even individual equities and I think having an investment professional to manage all of that is really the very best way to go but in terms of quoted quoted good investment program that safe for seniors and forts. I don't know of anything that's a replacement just for good solid investment strategy that I just described. That's helpful though clear the kingdom advisors that we have around the country and there are hundreds of the men and women are all men and women of faith, so when you speak with one or several of you have that opportunity. You can be assured that they are people of faith will understand your position and have the same guiding principles that you do not like my notes say that you're in your 80s.

Rabbits are still space for people in that age group to be involved in the stock market. Oh, absolutely. I think the question is just in what percentage, so you might say, you know, at 88 for somebody who's got their expenses covered through Social Security and maybe a pension with some assets, you'd still want to have maybe 20%. Maybe more in stocks and the rest in bonds and cash and cash equivalents, you know, this might be money that you plan on giving away might be plenty of money you plan on inheriting you may not ever expect to need it so you want to have a growth component to it, but obviously the older you get, the more conservative you want to be in.

That's what an investor professional would do so not clear. If you need some assistance in the moneywise

Click on find a CK in there in Missouri.

I would interview at least three before you make your decision and CK of course means certified kingdom advisor clear, were glad that you called today and thank you for being so sweet and for your kind comments and your prayers.

We really are blessed by that Tampa, Florida hello Joan, just a couple minutes.

How can we help all I know all about my long file about 24 50 yeah I like that Joan, when you look at your budget. What would you say is the total of your expenses for for a month about well about okay so you know, with 10,000 you got about four months worth of expenses there in your emergency fund and assuming you don't anticipate any major disruptions or major expenses on the horizon. I really like your plan, I definitely payoff that the $12,000 loan at 7.8%. That's a guaranteed almost 8% return on your money. What you're not getting in your savings and Not by any means you're probably lucky to get 1%, so that's gonna pay that off save you some interest and now you don't have that payment every month which is going allow you to do two things. Maybe you take half of that and start replenishing your savings and take the other half and let's go after that 4000 home equity loan pretty soon you're to be completely debt-free and then all that money is going into additional savings and giving so I like your plan, and I would go exactly in that direction. Joan, thank you very much. We trust you have a great weekend. The financial wealth you leave behind could be the best thing that ever happened to your loved ones or the worst in splitting hairs, giving your money and things to your children without ruining their lives. Ron blue explains why it's important to make these decisions now, instead of forcing your heirs to do it later.

Splitting hairs will foster a real appreciation for the precious resources that God has entrusted to you, and it's available. Click the start button moneywise love is very require. I'm a car guy and I'm here to help you understand God's purpose for your life to the eyes of a layman. So how is your intentions been going during your pastor service. If you find yourself nodding off says a lot about you.

It's not about the Savior going to heaven. It's not the focus of your attention until you get to have if you're saying it merely focus on living a righteous life until you reach heaven you have all the information you need. Boredom sets in Bible say prototype become obligations and staying focused on your pastor's sermons all but impossible. Your mojo back.

You know you should be sharing your faith, what you don't know is it share your faith turns every day into an adventure Bible study into a treasure and your pastor's sermons and don't gold mine of information for your next encounter. Your job is ignite revival outside the walls of the church by moving everyone every day closer to Jesus. If you need help doing that. Go to

This is anagram lots of daylight for daily living on what foundation are you building your life is an important question when we all need to consider all around us we see labs collapsing with broken hearts and broken phones and broken homes, lives with shattered mind, shattered emotions, shattered body and we cry out what's gone wrong answer is that the foundation on which the majority of people are building their lives is cracked. First Corinthians 311 tells us no one can lay any foundation other than the one already laid, which is Jesus Christ is only one foundation that will last garments of the crisis or pressures of life and it's Jesus. Listen to me establish a personal relationship with Jesus and development through your Bible reading in obedience is strong enough to see you safely through life's storms and pressures build your life on the foundation last this is anagram buying a home is the largest most nerve-racking purchase. Most of us ever make. It doesn't help that you're entering a maze of unfamiliar words and confusing options that can lead you intimidated frustrated and afraid. You can take advantage of navigating the mortgage mates by Dale Vermillion help you clear up the confusion on rack your nerves and make the best mortgage decisions possible with confidence navigating the mortgage maze available when you click the start button moneywise. three says you ask and receive because you ask with wrong motives, so that you may spend it on your pleasures. And with that in mind, let's go to Sioux City, Iowa hello Jeff what's in your mind and brain emigrating. Thank you.

Thank you Jeff. I am an 18-year-old grandson rain. He turned 18 in August 2019. I got my stimulus check. We filed him to get his stimulus check and they said someone else is mother claimed him as a dependent that year, why, why does stimulus check it stimulus is for 2020. Not for 2019. Yeah well the challenge Jeff is that the only thing Iris has to go on presently is the 2019 return because obviously the 2020 return hasn't been filed. So our understanding is this for children who are now 18 and stopped being a dependent. This year, meaning you or his mom won't claim him as a dependent. Then as soon as this tax year is over at the end of 2020.

He can file his own taxes and then get a check at that time because here's the requirements to get the $1200 payment. He needs to not meet the IRS definition of a dependent, which this year.

He does not, even though they don't know that yet.

Plus file a tax return in 2020, which he won't be able to do until early next year so the downside is is got away. The upside is he still should be able to get that money as soon as he can file his own return and nobody else claims them for this. This tax year.

Does that make sense. Super.

Okay, yes or so I would teach him a little about patients.

In the meantime, God bless you Jeff. Thanks for listening.

Appreciate your kind remarks that thank you very much Jeff and Rob, I was listening closely, I understood everything you said but you have to admit that can get a little murky.

A little money there when you trying to understand these things. It is the IRS.

Steve some murkiness ever press in Kansas City, Missouri hi Jim, what's your question like what we have not received my wife program based about something.

Yes and yes we might yeah you know right it it said it's certainly something that we've heard of quite a bit.

There were a number of people that got these prepaid debit cards.

It was not the majority, but there was millions of them that went out starting the week of May 18 and it came from a bank called meta-bank and it was absolutely valid. It wasn't a scam as some people were thinking it might be. So I would go to and just do a quick search. Let me just ask first though. Jim you didn't file your taxes through someone that had a holding account that the return or that the refund came to before was disbursed to you. Did you know okay is sometimes that was tripping people up. Where was it was sent to the. The CPAs account and that they didn't actually see it so I do want to two things go to There is a form 3911 that you can file it's normally for folks who've lost their tax refund. The irises using that for a while stimulus payment as well.

Gotta be patient. It can take a while to get it but it's Iris form 3911 or you can call that another system is often overwhelmed so it can be difficult to get through to a live person, but you got a pencil handy. It's 800-919-9835 800-919-9835 and just asked them about it. Let them know that you think perhaps you threw it away and you need to know about getting one reissued it will happen eventually. Be patient, but that's a little strange that you haven't gotten the first one by now, and obviously wrap this thing with the stimulus checks it's a learning experience for all of us, including the government. Recent headlines tell us that over a million checks were sent out to deceased people in the amount of $1.4 billion, I'm not sure how that's going to be recovered. Since dead people are notorious for being unresponsive right but hopefully we'll get some of them but well, I suspect most of it will hopefully won't be cast right so it never left the treasury's coffers. The city, let's go to Marlene in Illinois MRV.

Thanks so much for holding on and you may be her final color today will see how can we help all all just a little bit Marvin Marvin, could you speak up or get a little closer to phone for us. That's better. Yes ma'am. Thank you all pay off the turkey.30.line I got insurance from me that if I should die my beneficiary which is my two children would get out and have been painted quickly year and he got different insurance I get it out.but I'm kind program about something, I can't believe that name called me that cancer insurance that I have sent out because he said if I had my get anything if I die cancer that ensure and keep the back that line obtained on the 60.50 thousand insurance plan that he ate before you. I want to eat up from nine yeah Marvin, here's my thought, you know the purpose of life insurance is really ultimately is to provide assistance to your loved ones who might be placed in a hardship situation, either because at your passing. There dependent upon you for income and that's gone or they will have an increase in expense so that would typically come with a nonworking spouse, the working the nonworking spouse is the caretaker for small children. If something were to happen to that person. Kids now going to full-time daycare because the remaining spouse is still working full time and so you know there's a need for be immobile able to provide and add that type of expense to the budget which can be cost prohibitive in the in the case you're talking about in terms of using whole life insurance, which just by its very nature is going to get more expensive. The older you get, because the mortality rate says the older you get the closer you are on paper to mean no to going home to be with the Lord. And so there's an and increased costs to underwrite that life insurance every year in your using that insurance to in a sense provide.

I guess an inheritance to your kids. What I would rather see you do is first answer the question, do I have a need for life insurance. Is there somebody that's depending upon me that if the Lord were to call me home. They would be placed in a really difficult spot.

And there would be a hardship if the answer is no then you really don't need life insurance. So then the question is okay with with the though God's money that he's entrusted to you.

What is the best use of that $66 a month. Is it additional savings for you to have if you need long-term care. Down the road. Is it additional giving right now that the Lord is leading you to do is it to buying on in the long-term care insurance policy that's going to provide some assistance for you if you need to go into a nursing home or assisted living or in-home care, something like that. Any number of things, but I think the question is, I would be asking the question, why $66 a month so my kids can get 50,000, and by the way, they may not, depending on how long I live. I'm just not sure that's the best use of that money.

If there's not a real need their life insurance and so I'd probably look at canceling those reclaiming the cash value that you built up and then praying through the best use for that money. Moving forward, and I suspect that will become fairly obvious to some extent. Yes right well in and has the last thing you are welcome. Let me just finish with this and say it probably makes sense for you in the week.

We can only do so much or three minutes on the air. It probably makes sense for you to sit down with an investment professional somebody who's experienced somebody who's a knows God's word and can really bring biblical wisdom to bear so I would not go to our website find a certified kingdom advisor there in Illinois that you can visit with and I'd interview a couple of them just have them look over it not only your insurance but your investments in your financial plan and give you some counsel there and I think you become a part of me were glad that you got through today and we certainly hope that information helps you. Thank you very much and Rob West. It's been a great week and always a pleasure, sir, I will chat again.

Maybe on Monday look forward to Steve everything thanks Rob you to pay and thank you not only for tuning in today but thank you for your prayers and your financial donations that make us coming to you on a daily basis possible.

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