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SECURE Act 2.0

MoneyWise / Rob West and Steve Moore
The Truth Network Radio
May 25, 2021 8:03 am

SECURE Act 2.0

MoneyWise / Rob West and Steve Moore

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May 25, 2021 8:03 am

The SECURE Act that went into effect in 2019 made it easier for Americans to save for retirement. And now Congress is preparing to upgrade that legislation. On the next MoneyWise Live, host Rob West shares some details about what lawmakers are calling the SECURE Act 2.0 and how it might help the American family be better prepared for retirement. Then he’ll answer your calls and questions on various financial topics. That’s MoneyWise Live—where biblical wisdom meets today’s finances, weekdays at 4pm Eastern/3pm Central on Moody Radio.

Finishing Well
Hans Scheil
Finishing Well
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Finishing Well
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Finishing Well
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This is Doug Hastings, VP of Moody radio and were thankful for support from our listeners, and businesses like United faith mortgage. Let's call it the couch cushion – this is the moment when you need a tip for the pizza man a few bucks for your kids lunch or you can't say no to the sweet eight-year-old and her thin mints you got no cash and no other options but to tear apart the house searching for hidden money. It's Ryan from United faith mortgage and it's funny how we can usually find a way to scrounge together a few bucks, hidden around our house. Shame on you if it's from your kids piggybacks for many listeners know there's enough money sitting inside your home to buy a swimming pool full of thin mints, home values have gone up across the country. The last few years, leaving many of us with a good chunk of equity tucked inside our homes that we could cash out to use for life. If you'd like us to help.

We are United faith mortgage United faith mortgage is a DBA of United mortgage Corp. 25 Millville Park Rd., Millville, NY. Licensed mortgage banker for all licensing information, go to an MLS consumer corporate MLS number 1330.

Equal housing lender not licensed in Alaska, Hawaii, Georgia, Massachusetts, North Dakota, South Dakota and Utah and secure acts that Pres. Truman signed into law in 2019 made it easier for Americans to save for retirement.

Now Congress is preparing to legislation Rob West to their calling it the Secura 2.0 lawmakers are saying it will make it easier for the American family to prepare for a financially secure retirement will talk about that first today and then take your calls at 800-525-7000 800-525-7000.

This is moneywise live biblical wisdom meets today's financial decisions okay so this legislation is officially called securing a strong retirement act of 20, 21, it's already been approved by the House Ways and Means Committee in the full House is expected to vote on it soon. Normally we wouldn't report on pending legislation because an awful lot of it just doesn't go anywhere but the secure act of 2.0 has broad bipartisan support in both the House and the Senate and stands a good chance of landing on Pres. Biden's desk later this year where he is likely to sign it at retirement advocacy groups in the financial services industry also appear to favor the new bill.

So what is it mean for you and how might it change the way you save for retirement.

Well, for one thing, it would allow you more time to salt away contributions to your 401(k) or traditional IRA before you have to start taking required minimum distributions and pay taxes on those withdrawals. The original secure act raised the age for our MDs from 70 to 72 and that was considered a major improvement.

But now the secure act 2.0 would raise the age for our MDs from 72 to 75 that would be extremely helpful because Americans are living longer and the change would give more flexibility to build up a bigger nest egg before having to make withdrawals and here's another key feature, almost hard to believe the bill would exempt retirees from taking RMD for life. If the sum of all of their retirement account balances is less than $100,000 when they reach age 75 and that may not be the end of it.

There may be growing support on Capitol Hill to get rid of the required minimum distributions completely, but don't look for that in this legislation. And here's another key provision. It would actually push employers to make enrollment in retirement plans. The default position for new workers. They'd automatically be enrolled but could opt out.

If desired that right now. Employers are required to implement automatic enrollment, but research shows that those that do have higher rates of participation in retirement plans. Many countries such as the UK, Australia and Israel have mandatory retirement savings programs.

Lawmakers say that automatic enrollment would get millions more workers starting to save for retirement at an earlier age which is key for allowing investments. Time to grow. There's another provision in the secure act 2.0 that would help workers pay off student loans while still saving for retirement. You see, it would enable workers to pay back their loans instead of contributing to their retirement plan, but they could still receive employer contributions. In other words, getting the so-called matching contribution without putting anything into a retirement account. Imagine that the legislation has a few other provisions as well. It would give additional tax breaks to low income workers who save for retirement under the savers credit and would peg that credit to inflation.

The bill would also create a national database for lost retirement accounts yes retirement accounts do get lost tens of thousands of them. In fact, it happens when workers move from one company to another and then another and eventually lose track of the money they left behind that currently workers age 50 and up have a special catch-up provision for contributing to their retirement plans. The bill would increase those amounts and tie them to inflation now while all this is good news for workers who have employer-sponsored plans. It doesn't do anything for the one third of US workers who don't.

The solution advocates say is a national option for workers whose jobs don't come with a retirement plan that several states have already set up similar programs on that level. So there you have it. Everything you need to know for now about the secure act 2.0.

David signed into law as expected, it could help a lot more people save a lot of money for retirement and keep in mind the big idea here is not to build bigger barns is to recognize we should set aside a portion of what God entrusted to us for the future so we could provide for our families and continue to give throughout our lives. Your calls or text 800-525-7000 800-525-7000 nine Rob last year, listening to moneywise live biblical wisdom meets today's financial decisions with us much more, including your calls just around thanks for joining us today on moneywise live Rob last day taking your calls straight ahead. Here's the number 800-525-7000.

We have some open lines would love to hear from you. Whatever's on your mind, financially speaking will run it through the lens of biblical wisdom, and talk about how we can move you forward to experience God's best. It when we recognize God owns it all and that were a steward and that money is a tool and we should hold it loosely. It changes everything, because every spending decision becomes a spiritual decision. It's a question of our money being an accurate barometer of reflection or reflection of what's going on in our hearts. You know it says what we value.

It also really says where we placed our trust and you know, in my experience, our financial journey is one of the key ways that God shapes our spiritual journey. We just look at the parable of the sewers will see quickly that if something is going to choke out the word from having a 3060 hundredfold return in our lives. Well, Jesus said to the disciples, the cares of this world, the deceitfulness of riches, and the desires for other things.

I would say 2 1/2 of those are probably money related, at a minimum so that means if something's going to dethrone God from first position in our lives. It might most often be money and so if that's the case, what can we do to loosen the grip of money over our lives and really see it as a tool to accomplish God's purposes. Well, there is nothing better than generosity to really help us to posture ourselves to be givers so that God's provision doesn't stop with us but we become a pipeline into God's activity and yes were to provide for ourselves, but were certainly to be generous to others, to the ability that we have member.

The Bible says, each according to his ability. So it's systematic based on how God has prospered us that we certainly want to be a blessing to others around us. That's really the framework if you will, through which we look at everything here on this program and it's why we talk about money every day. Not so we can build bigger barns but so ultimately we can live in a more intimate relationship with the father. That's what it's all about it.

We want to take your calls and questions today. The number 800-525-7000.

That's 800-525-7000 were to start today in Lockport, Illinois. Richard your first up, how can I help user I sure my oh my wife inherited money and upcoming my part of our country is now doing a lot of the buying and buying gold and silver. One way I thought about that. You know I'm not a big sin of that approach. Richard and I understand that you know there are some challenges we have on the horizon. Notably, the spending that's going on in this country the debt that we've got to that's been growing astronomically ill as of late, and we seen a bump in inflation. The Fed says it's transitory that is that they believe it will be short-lived. As a result of the economy reopening and supply constraints that will work themselves through the system and that they can manage inflation and that though because corporate earnings are good and we have a strong consumer. We should see the market continue to move to higher ground now could we get into a recession. Absolutely, they tend to be were cyclical and we haven't seen one. Apart from an itself induced recession that was very short-lived last year as a result of the pandemic. But I still believe that the very best place for you to be with your long-term money and that's really the only money that should be invested 10 years plus is in a properly diversified stock and bond portfolio and beyond that, probably in real property and real estate where you could generate an income not in highly concentrated positions in gold or silver. The precious metals. Most financial advisors will tell you 10% max in precious metals, I'd probably move that more toward five that keep in mind, it may serve as a hedge against inflation against inflation and insurance against financial calamity, but the historical returns are just not there you if you went back 200 years and put $10,000 in gold 10,000 in bonds 10,000 in stocks.

It doesn't even compare in terms of where you'd be today.

And so you have less return over every pretty much every reasonable historical. You could go back and track and you have more volatility in all the other challenges if currency became absolutely worthless and you have to go to a pretty far extreme for that to be the case but let's play that out, but we all have to resort to trading goods to survival what values gold at that point know and it only earns money when you sell it so it can't provide an income which makes it a challenging investment. So II think at that point we have to say okay we should have a position because again it's a store of value when things are performing poorly or had a doubt heading down it tends to do better. Although that hasn't really been the case as of late with the spike in inflation and we should have really are serious long-term investment money. I believe in the stock and bond portfolio. When we get in when we get to a certain level I would say, you know, at least north of 100,000 maybe 200,000 in investable assets. I would really seek some wise counsel in terms of having some professional management. Unless you're skilled or really have the time to do that yourself by choosing your own mutual funds or ETF's, or even individual equities. So I know there are a lot out you there. Richard tell me your thoughts.

I agree with Barry about her.

The collapse of our monetary stockholders, gold, and no money to buy back what you like what you said about trading goods and money whatever whatever the system that it will be worth a lot of money and will build a solid but I guess she is planning on a total collapse of Maine and obviously if that were to play out. You know, everybody would kinda be in the same boat there and it would be very difficult to with a bar of silver reading coins to turn that into anything you could obviously traded by the unit becomes challenging at that point, I think the key is to recognize that we are responsible to be found faithful with what passes through our hands and if we it may sound overly simplistic, but I believe if we follow these biblical principles spending less than we are avoiding the use of debt.

Having some margin setting long-term goals and giving generously and we take a long-term view guilt. I like seeing.

Ultimately, the United States, succeeding, and I believe that we have the strongest economy in the world. Yes, we have some challenges I think will address those and note. Could we end up with the debt crisis down the road. Well, we could if we continue on this trajectory, but I think we can work that through the system as well. We have a tendency to make the hard choices when our backs are against the wall and I would just rather see you in that kind of position longer term with a properly diversified stock and bond portfolio or real estate as opposed to putting you everything you have a good portion of it in gold. I just don't think the data is on your side in terms of how that will perform even in the event of some real challenges down the road so I would make that a matter of prayer at the end of the day you and she together are the stewards of God's resources that have been entrusted to you. And so I want you to develop a conviction around that seek some wise counsel and then move forward with confidence and we appreciate your call today.

Let's head next to grand Haven, Michigan before he do let me mention though we do have some lines open. Would love to hear from you today. Whatever's on your mind financially 800-525-7000. Julie is up next to red. I get turning 18. You and I may have thanked you years ago, and to get pension I get my pension and I get his so security. This combined income is maybe 30,000 a year.

I'm not combined in both my has been in my pension get to the fact that I get health insurance through his pension and it's in very good health insurance.

Should I keep up with this case, I knew had at least six months to a year in emergency savings plan which I thought then that my situation is specifically about the Social Security portion of the pension help me with exactly what it is. The decision to drink and I knew whereby the certified financial planner and he got to our church is very good and he allocates enough so much a month for myself. Everything paid. I have now dad on the good Lord has really provided me in a good stable income at this point in my life without a part my my has been so kind wondering where should I should I keep going at what I'm dealing maybe my income is maybe he gets about 2500 a month okay very good. Well, I think the key is you as you collect his pension.

You're not taking yours and so at some your wondering if at some point, you should switch over to collecting your pension. Is that right in my pension hit rate of security. Okay, very good.

Yeah what I mean to sound like you're on a great trajectory here and you're in a really strong financial footing. You've got to your spending plan dialed in.

Sounds like you have the income you need. I would continue your earning those pensions as you have been like the fact that you have good the high-quality health insurance that's good to be key, especially as you move forward and then you want to look at you what to do with Social Security. You can of course continue to collect the survivor benefit and then apply for your own benefits. When you reach full retirement age and take whichever one is more, and so the Social Security ministration will give you the benefit of whichever one is higher, but it sounds like you're very well-positioned you're getting some godly counsel. I think you to adequately job Julie so I appreciate your listening and calling, but I would say just stay the course with exactly the plan and trajectory. You've been on and that let's just pray that God will continue to bless your efforts am confident he will is your make and some really wise decisions. Thanks for your call today. The folks I thanks for being with us so we have a lot more to come here moneywise live today.

A couple of lines open.

Here's the number 800-525-7000. We can talk about investments, credit score, paying off debt whatever's on your mind, let us know will apply the truth of God's word to your natural situation. Thanks for stopping by to make today, moneywise and today the moneywise live on Rob last. This is the program look at your finances through the lens of Scripture remind you moneywise live as our partnership with Moody radio and because of your generous financial support.

We do what we do right here on this broadcast and through the moneywise app that you can download in your app store on the web with the best content from all of the leading biblical finance voices in our space a plus our moneywise coaches serving hundreds and hundreds of God's people every day with one-on-one coaching relationships and answering your questions by email. All of that is a result of your generous support. And as we head toward the end of the month here in May and into the summer months, which are always a bit leaner. I would just ask that you prayerfully consider if you consider yourself a part of the moneywise family gift to the ministry.

Whatever you might be able to do of course beyond your giving to your local church but whether that's one time or a monthly gift would certainly be grateful here's how you do it just had to our website moneywise, click the donate button and you can give quickly and safely, and we would certainly appreciate it. All right, let's head back to the phone so it looks like all the wines are full so if you're getting a busy signal. I would wait just a little while and will see if we can get to you little later in the program.

Next up in Zephyrhills, Florida is J. Welcome to the program how can help user much thoroughly enjoy your program helpful, practical, and enjoyable. So I appreciate that I have a fidelity investment through nomination will program with fidelity investment called and spoke to him about having the required minimum distribution money channel directly to a church or college and they indicated that the synthesis of 403B plan. I could not do that if it were an IRA, it would be possible to do that and I wondered ask you about where this possibility or feasible. What you might have say about that question. First, did you say you're retired.

Therefore, you're not connected to the organizational retired. I am retired up so part of the denomination, and so on. But retired years ago, so I can't know the information you God is correct, the tax code does not allow what are called qualified charitable distributions from an employee sponsored plan like a 403B, but they absolutely can be made from an IRA. Once you separate from service. You're then able to roll that 403B out to an IRA. That's not a taxable event. You would not receive the money you complete the surrender paperwork you can open a new IRA right there at Fidelity or another institution in the 43B assets once they were liquidated would just be transferred in its cash and again and not generating any kind of taxable event. But then they could be redeployed based on the investment strategy that you or an investment professional that you hire would determine at that point you absolutely could begin satisfying your required minimum distribution each year through a qualified charitable distribution essentially where you would have the money go directly from the IRA to your church or as you said maybe a college when they receive that they would then get the full value of that amount for their activities or ministry and you would receive the benefit of making sure that that R&D was satisfied for the year and then you get to deduct the full amount which keep in mind if you were to to take that distribution yourself that be a taxable event that you have to give a smaller amount at that point but you actually get the full deduction by making it directly through the QC just a few seconds left.

Does that make sense J line. Yeah, let's do this. I'll talk to you off-line about that answer your questions were going to break your appreciate your listening. Thanks for your encouragement.

More to come on moneywise really talk about forbearances on mortgages with potentially just around the corner as well as perhaps thanks for tuning in the moneywise live today on Rob West just before the break we were talking to Jay retired Pastor Nazarene church delightful gentlemen that he was looking to make a qualified charitable distribution, to satisfy his required minimum generously. I love it. Just after the break he was asking how he could connect with a certified kingdom visor and if you'd like to connect with the CK a that is a financial professional, whose obtained the designation that I believe is the gold standard for biblically wise financial advice.

You can do that on our website.

I directed Jay to moneywise and asked him just click the button find the CK you can do that as well put in your ZIP Code you finding a listing of those financial professionals and five disciplines, financial planning, investments, tax and accounting, insurance and estate planning attorneys. You can select any one or all of the five you find the CK's in your area. I'd interviewed two or three and find the one that's the best fit. If you're looking for a financial professional offering advice that aligns with your values and priorities as a Christian. All right, let's head back to the phone so I'm just a moment were to be talking to Margaret in Fort Myers about her mortgage whether she should refinance Jerry and Lake Wells has the stocks you bought back in the 90s can't find the information wants to know how to trace it. But first, Naples, Florida.

Tenley understand you have a question about a forbearance plan is a right how your program that forbearance my mortgage company like 2029 able take the training that I was able to catch up going on what I need all unique, but I a loan modification, market share, but my question is should I get. Where should I go ahead and I'll back mortgage. It payment for a reprint. However, my credit that shape right now yes well the business said to Tenley of the modification would be if you can no longer afford to make the regular payments so keep in mind you have to eventually get caught up on the amount that's in arrears.

But then you'd have kind of that same monthly payment that you had prior to all of this and if you're not in a position where you could get favorable terms on a refi because your credit is been damaged through all of this, then we probably shouldn't count on that anytime soon and I want to make sure you're in a position that sustainable based on the income that you have where you really dialed into that spending plan you cut back every possible way. I want you to have a mortgage payment principal, interest, taxes and insurance that you can afford you, within your budget.

So we don't get into this situation again in the future.

Do you feel like a modifications necessary or do you feel like once you got this amount in arrears pay back that you can handle a little tight so it carried God. Well, I very letter actually I think my midterm additional water hit on your credit score, but it's going to be more costly in the end because not only we have the fees that often accompanied by the loan modification but then with a lesser monthly payment is just going to extend out how long it takes to repay it, which means more interest over time. So if you can afford it in a continuing that either through a repayment plan. You know where you pay more than your regular payment each month to cover that amount in arrears and then getting back to your regular payment at some point down the road when that's paid off that's the best case scenario. It's the least expensive and it's can keep you on the same track to get this mortgage paid off in the same term that you originally had. So if that's what you know can afford.

I would say that's gonna give the best scenario I just want to make sure that you're not setting yourself up for failure because it's you know it's too high in your current reality that I have no idea what happened with your business and you know through the pandemic and whether that's recovered but I just don't want you to continue to find yourself in this situation were you struggling but clearly, if you can, through a repayment plan. Get that amount in arrears pay back and then move forward with your current monthly payment that's going sure that you pay the least amount of interest possible. So I would take another hard look at your budget. Talk to them about the options that you have and then I would proceed from there. Does that make sense okay listen, don't be discouraged. Keep up the good work you were six or seven months behind.

You've already caught halfway back up. That's not easy to do and so Tenley I believe you can do this so you just stay at it in the trust the Lord for his provision. Continue to honor him and I believe he will walk alongside you every step of the way we appreciate your call today. Let's head just north a bit to Fort Myers, Florida Margaret, how can I assist you I you have a question about my mortgage order. God then I don't remember my interested but not if open to keep sending information that you kind of finance is going to be lower. You'll do it 5 to 737 delete something. But the thing is when I was dedicated each year.

The fight game that we I'm paying for it without paying more like if I paid that we I'm paying you as you beat so I don't know what delete I have to find that they got money all or just keep what I'm doing, so I can finish it and forget to settle for you yes and so you you believe that based on the amount you're sending right now you can have this paid off and did you say four years EA okay how much extra you sending every month here when I get my income was not, and… The whole thing in a pretty time on sending payment now I'm paying extra okay to well one thing is not really the old 2500 X so deep you do not will stay on with 20… Geeky to my people. Margaret, that's incredible that is absolutely incredible know you should just stay on this current track because the cost of refinancing would not be worth it because you're not going to be here in this mortgage long enough for you to realize the benefit that you would get through the lower interest rate because you have to spend quite a bit just to refinance in out-of-pocket costs, and you know the rate at which you're going, the amount you're adding to your mortgage. It's not gonna work to your favor. You'll barely make any money.

Plus you have to go through the hassle of finding the right mortgage and so forth. So I just stay on this course you're gonna be out of debt. No time and you're gonna be delighted. Margaret, when you have no mortgage. When you tear that up. You promise you'll call me and tell me when that day comes, that will will will celebrate together is is that what you're looking for. Can you does that make sense.

So what do I do know what to look at the court to find out yet. My my dad used to say put that in file 13, which means right in the trash. Okay, maybe on a shredded first. But hey, we appreciate you listening. Thanks for your call today. It's so much fun to walk on his journey with you all be invited in your stories every day as we talk about what God is doing in your lives in a biblical truth of what's going on in your finances will do that with some other folks just around the corner. This is money wise. Life is an intersection.

Today's financial decision. Stay with us were grateful you decided to do it in today and moneywise live on Rob last mention this imaginative writer in your pocket you had any given time. The knowledge of where you stood every one of your budget category. How much was left to spend your spouse were on the same page and then you also have access to the best content in Christian finance. If you have a few minutes or you're on the treadmill, you could pull it up and start reading, listening to great podcast or broadcast archive moneywise live or imagine if you had a question. You could just jump in and post that somewhere in other Christians and trained coaches would respond to those questions were a biblical perspective when you can have all three of those in the moneywise that we love free to download it if you haven't already, you'll find it in your app store to search for moneywise biblical finance and it's a free download. Let's head to Lake Wells Florida Jerry, you've been incredibly patient. How can I help you today. I lost track of all do another track. The good news is, you still own the stock.

Even if you can't find the certificate and companies have different procedures for reclaiming stock ownership so you'll need to contact the current company.

The ultimate owner that you said it was purchase of contact that company and specifically contact their investor relations department. You'll find a phone number for that on their website. Every publicly traded company has information about investor relations and how to contact them on their website and they'll tell you the steps you need to take basically typically looks like this. You state the facts surrounding the loss in an affidavit by an indemnity bond to protect the corporation and the transfer agent against the possibility that the law certificate may be presented later, the, the bond usually cause one to 3% of the current market value of the missing certificates and then the owner has to request a new certificate before an innocent purchaser acquires it, and then at that point it would be issued. So I would go on the website of that new company that bought this company that to you previously had shares of stock in contact investor relations.

Tell them what's going on and they will walk you through the steps to move forward. Cemex century shared all right and we appreciate your call today. Thank you very much. May the Lord bless you. Let's head to Fort Lauderdale, Florida, my hometown, Barbara, thank you for your patience can help you. I should add that I I twitch on 70 to collect the security thought get that 8% year extra become of age.

Now try to wait you much talk about my question. The cauldron each pad like I think they give it to automatic right know it automatically happens, but the benefits won't automatically start until you request them & start receiving your benefits, but that 8% will automatically be added so long as you have it now. The only exception to that is if you took benefits after receiving full retirement age, but then you voluntarily suspended them to earn the delayed credits of a percent year was that your situation now never collected okay yeah that's a very small grant. So yeah, in your case, yes, the 8% is automatically being added every year, but you do need to go online. Once you get to that point and begin request or request receiving benefits at that point so that those checks will automatically start okay and I have to charge you for that. When this first one is when I do collect. Age 70, which is my I heard she could actually collect her pocket for security under naked attention but he should get the security you can collect under your specific. Well, maybe half whatever I'll be getting satellite little computer… He can plot apply under micro security. When I get it I get my security associate with her tongue. That is a spousal benefit yet so he could go after a spousal benefit. The question is just which one is going to be higher and so often folks will apply for a spousal benefit while they wait for their Social Security to continue to grow at that point you could switch to the one that pays the higher amount. So here's what I would do night head over to and schedule a virtual visit to her meeting with someone from the Social Security administration.

I just cannot talk through with specific numbers based on your situation. What's possible for both you and your husband as you start to collect in the walk you through all of that so that you can maximize whatever you are entitled to and Barbara. We appreciate your call today to Spokane, Washington Leo, your next up what's on your mind yeah hello I have a question about when I have to start doing the required distributions will text compasses withdraw any money out of my IRA or variable annuity. What I figured it well over the years is that well there's a couple of approaches on that Leo and I appreciate you wanting to apply the principle of the time which is on the increase you as you give according to what God has prospered you.

Now, the increase in retirement account is a little more challenging because we receive income. It's just obvious. We total up everything we received and we give tithes on that you got a couple of approaches one would be just as you take money out you go ahead and calculate the tithe and pay it out. At that point now. The argument for that.

Could be that well.

A portion of this is a return of what you put into it and if you were tithing on the gross amount of your income and then you were taking a portion of what you would tithe Don already and directing that into a retirement account that you're now taking it out of then your sense tithing again, but you can't out give God.

So I would have no problem with you doing that if that was where you landed, if still you said no, I'd rather just tithe on the true increase. Not what I'd put into it that I think perhaps the simplest step would be to from this point forward say okay I'm going to track the realized gains inside that portfolio even though they're not taxable because there is a tax-deferred environment I'm can attack track the realized gains every year, meaning what it you know I sell appreciated securities for inside the account and then based on that amount each year I'm get a time so you know that could be challenging, depending on how much gain you have in any given year because you not automatically taking that amount out your only get a take out what you have to take out so you have to kind of work that through what works for you practically in terms of the cash flow that you have available, but I think you either have to go one of two approaches just everything I withdrawal even though a portion of that is a return of whatever he put in and therefore tithe Don I'm going to give to the Lord, or I really just want to look at each year. You know what is my true realized gain for all the holdings in the portfolio and then calculated tithe on that and then maybe you could keep a running total total just give as you're able to give against that number gets somewhat complicated. Leo, did you follow the bit with the culprits were able to help in that regard will absolutely get what you would not because remember, that's not a taxable event.

So typically they're not looking at that very closely. But what I would say is yeah you would absolutely at the end of the year or quarterly that I probably do annually. You just call them and say hey I want to know inside my retirement account. What are my realized gains for the year and that they could total let up, give you that number and then you could do it, you could give against that number okay wonderful yeah great thank you all right, Leo, God bless you, sir. We appreciate your call. Our final color today is good to be from Cleveland, Ohio Edward, how can I assist you all about seven years away from retirement, I have about $20,000 home equity loan that's about it, I don't have any other debt, and would love to be like a snowbird and wonder how wise it would be to check some of the 401(k) that I have two put down money before I retire for a second property yeah so you looking to borrow against the 401(k) or just take a withdrawal rethinking well acted on it. PHY could just take it. 9 1/2 you take it well, absolutely. Well, it's not a great idea for a couple reasons. Number one, as it tends to be expensive money in the sense that whatever you take out is good to be added to your taxable income for the year and if you're looking to buy a piece of real estate that could be a lot of money and it could push a portion of that up into a higher tax bracket than even you're paying right now you know they think that's the first issue, the second is that, obviously, that money is no longer available to continue to work for you, but you have to determine whether that makes sense to you. How much would you be looking to take out so you like property in Florida that were running around the hundred and 9085, but taking out 20% so I wouldn't have to pay any of the you know well you certainly could do that.

I think the key is you just need to look at your overall financial position and make sure that you can afford to do that in terms of understanding what is my true need.

What are my expenses going to be in retirement and how my going to cover those through Social Security and whatever other retirement assets you have, including this account that you be pulling from and can you cover all of your obligations, including the additional expense associated with the second home based on all of those things and that the answers to yes will then that's great. And then you know if you're looking to pull only 20 or 30,000 out. Just recognize that you want to make sure to set aside that portion that will need to be paid for the tax but there's no problem with Adam, and I think that's a good plan again as long as it fits into your overall financial plan and what you're trying to accomplish, but don't get caught off guard with the tax it's going do you want to going get that Pete income before you file. We appreciate you calling to do it for us so glad that you stop by today moneywise light is a partnership between radio and moneywise media say thank you to my amazing team today producing any Rios engineering Dan Anderson are closer later today was to dwell in providing research with Jim Henry. I'm Rob West you back here tomorrow, continue to apply God's word, your financial situation. I hope you come back

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