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June 15, 2020 8:03 am
The stock market been like a merry-go-round lately. One day, bobbing up the next day Dell and investors feel like going around in circles. Does that mean it's time to consider buying gold investors are like most people only more so.
They don't like uncertainty in turbulent times as goal provide that security Rob Weston's down investing expert Mark Miller to find out the limits your calls at 800-525-7000 800-525-7000. I'm Steve Moore investing in gold snacks right here on moneywise live Rob Mark Miller, our good friend is also the executive editor at sound mind investing or were they been thinking a lot about gold lately but that's true. Steve SMI has not one but two articles about gold in their newsletter this month.
We encourage you to check them out more information on how to do that in just a moment.
But Mark, great to have you back with us again to be back. Mark why interesting Golden SMI. Is it perhaps because gold and other precious metals are on people's minds these days, or some other reason know the main reason that my readers specifically are focused on gold right now is one of our main strategies moved us into gold, and a pretty significant way back at the end of January.
That turned out to be a great hedge against the chaos that was about to unfold in the stock market, but to answer your broader question Rob investors in general have become a lot more interested in gold and precious metals this year and that's partly because of what we might call the fear trade, and partly also because of the massive government response to this economic crisis.
We've had which has some inflationary implications for the future in gold has always been a really good inflation hedge. Yeah well it's impact a bit of what you just said you mentioned the phrase the fear trade that look for you to talk a bit about that and then perhaps the average investor tends to look at gold yeah sure well you know a lot of investors tend to flock to gold whenever fear arises in the markets.
And that's because gold have this convenient for thousand year history of handling pretty much that everything us humans can throw at it and still ending up standing at the end. So whenever things get dicey people get scared as they did. Obviously this spring when the COBIT crisis in the bear market were ramping up that always spurs a lot of interest in gold and a more technical terms you know we called gold and uncorrelated asset because it tends to perform differently than most other financial asset classes like stocks and bonds and that kind of diversification is exactly what investors want, whenever the financial markets get scary. Yeah, it's exactly right this idea of it being uncorrelated just helps to provide further diversification in obviously there's more to it than just the fear trade if you will. You mentioned you will specifically SMI were buying gold before the recent market turmoil even started. So talk to us for a moment about what drives the price of gold and why some people are especially optimistic about it right now.
Yeah so gold has really been an uptrend there's been the strengthening underlying trend since late 2018 and that's what our SMI mechanical process were picking up on earlier this year. What happened in response to this covert and fair market crisis. This is really been kind of a big amplifier. Next seller and, if you will of some trends that were already in place and specifically I'm talking about the massive amount of new debt that governments have taken on in response to the crisis that plus all the new liquidity that central banks like our Fed have been pumping into the markets that really kicked off last September again before COBIT so were seeing this acceleration of these trends that were already in place and that that the expansion of the money supply. All these actions end up lowering the value of money that's already in circulation that debasing of the dollar that you hear about sometimes, and that makes real assets like gold that hold their value really attractive.
The dollar becomes less valuable affixed standard like gold becomes more valuable makes a lot of sense will have time to unpack this plus your questions. I'm going to that's right you listening to moneywise.
Your post is run less times more Mark Miller is with us today from sound mind investing in him a question about this or anything else related: right now we have 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 live.org. Our friends at sound mind investing had been helping Christians reach their financial goals since 1990 with step-by-step guidance for investors.
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Some of the best clues we have God's will for our lives are what he is already willing to put in our lives, namely our gifts, abilities, and passions as the parable of the talents teaches us in Matthew 25. Only those who invest what God has entrusted receive his commendation well done good and faithful servant friend.
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If that is robbing you of freedom and peace of mind. Christian credit counselors can help Wear a 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 getting phone to learn how Christian credit counselors can help you visit Christian credit counselors.org Christian credit counselors.or call 800-557-1985 with us today as we begin another week you listening to moneywise live a place where we do our best to help you understand God's word and how it applies to your money in helping us understand the investing component today is Mark Miller you really gotta check them out. They have lots of great resources and great articles to read when you visit sound mind investing.OR Mark and I were talking today about gold and that you've covered a bit of why someone would be interested in gold. While there's been a lot of price action in gold and new investment on the part of those trying to respond to this incredible Fed action and monetary stimulus all as a result of the response to COBIT.
We did see another first today. In fact, a just a couple of hours ago, the Fed made a major announcement with regard to something they had alluded to previously, but they're actually going to start buying corporate debt. Talk about how unprecedented this is and the implications perhaps so this this news originally broke back on Good Friday and it really, rocked the market at that time because the Federal Reserve has never really before come into the financial markets and and gone specific firm by firm investing before and and technically they're not really doing that now they're having some some independent managers do this spying on their behalf in there there loosely targeting an index cannot spread this money around, but it is disconcerting for people that have been in the financial markets for their whole careers to see an 800 pound gorilla like the Fed come in and now it's not just independent allocating of money between firms by the market you got this big actor and it feels like they are to a greater degree determining winners and losers, so that's been a big deal. The idea that the Fed money is is behind the bond market that's really the big picture message that's come out of this and so back on Good Friday, when they first announced that there be doing any of this.
And then again today at 2 o'clock when they announced they were going to be kicking off the direct lending to specific corporations.
Both times both the bond market and the stock market got a pretty significant check higher, and so that has of course you know whenever that type of thing happens there the more cynical type of interpretation. As you know, last week was the first significant trouble that the stock market has had since late March.
We opened with a pretty significant down stock market down close to 2% this morning, and low. But lo and behold, here comes a new yet another new Fed announcement that they're gonna be pumping money into the bond market and off goes the stock market to I guess about 1/2% gain today so you little suspicious on the timing, but that's kind of what's going on with the Fed and the bond market and of course what were talking about today with gold. You know it's all these repeated interventions by the Fed just pumping more and more and more liquidity and money into the system that makes people that watch gold thanks you know gold is really and then a catbird seat here because the Fed just can't seem to resist the temptation of adding more and more liquidity to the system which just makes gold more valuable. By comparison, well outside its incredible and unprecedented. Didn't you pick the word for what this is clearly the Fed is that we will use every tool at our disposal and their displaying that in their actions, not to mention the fact that the German posted recently were not even thinking about thinking about raising rates and he's clearly said we are here to support this market in this economy and were watching that in full effect. Let's get back to gold for a second though because it's not all up in the sense that there have to be some downsides here that the folks need to be considered. So why would we want to be cautious about buying gold yeah absolutely well. The main reason to be cautious about precious metals is they are a very volatile asset class and we don't have to look back very far to see really pronounced. Examples of that. So from 2011 to 2015, the price of gold fell from about $1800 an ounce to just over $1000, announced that almost got cut in half over that roughly 4 year. And now more recently, having run back up to about $1700 an ounce. Some people have been looking for a pullback in gold and enough to be fair, since since the economic news started getting a little bit better in the stock market has recovered over the last 8 to 10 weeks. The gold price has been, you know, kind and arrange a narrow range, though its ascent has kind of, at least for now. Topped out as the economic and stock market picture have brightened now is that temporary will have to wait and see. But it does kinda raise the point that there are potential risks to gold on each side of the economic recovery story. So on the one hand, if things get really good really quickly that your trade just disappears and investors go back to focusing on everything other than gold.
On the other hand, if things go poorly enough on the economic recovery side down the road. Gold also has a nasty habit of sometimes falling right alongside with stocks in the short term. So if we were to see another selloff in stocks. That's another possible downsides. There always risks you have to keep in mind with gold and precious metals taking your calls today and not just school but anything investing related because Mark Miller is here and Mark just knows his stuff when it comes to the world of investing biblical investing again. You can find them email@example.com and here's our phone number I we have 45 at least open lines, knows a great time to get through 800-525-7000 jot that down 1-800-525-7000 mark the things that we talk about the principles the scenarios that we talk about when it comes to gold and investing doesn't also apply to silver and maybe other precious metals.
Yeah it does Steve. I think the way to think about silver in relation to gold is silver, it's kind of like gold on steroids. Most of the time. So whatever gold is going to do silver's going to do that. Plus, you know.
Plus, after her times to you know whatever you want to think of now is not quite that simple, because silver does respond more to the underlying economic cycle, silver has more industrial uses that the real economy uses silver for than gold that so sometimes you see it moving more with the economy whereas gold is trading on a little bit different type of factor, but I think that over the broader term that relationship tends to hold where you know if gold pickup you know silver can really take a dive and end on the other side when gold really runs silver will often you know perform even better during that. It's a more speculative version, so I would encourage people to be that much more careful with silver because it can be that much more volatile in just a moment. Mark will talk about the best ways to invest in gold at the person wants to, but given the conversation we've had thus far. I don't want folks to think we're encouraging them to trade gold move in and move out trying to capture short-term moves in the market. Obviously, we are all about your all about long-term investments, which is what you are doing when you said SMI took an allocation in gold for your portfolios to talk about how to think about gold is a part of your portfolio and not get caught up in this trap of I need to catch gold now and write it up quickly and jump out. That's really not the idea for great point where were not trying to create gold traders hereby means but you know for an individual who is managing their own investments. Maybe their own 401(k).
That kind of thing. A small allocation to gold that you keep over time talk about maybe 1 to 5% of the portfolio can really have a nice volatility dampening effect on the overall portfolio again because it's gonna walk out of step with the other things in that portfolio and there there's some really easy ways to add that type of exposure which I think really get into here and that and then beyond that you really would need something more like the SMI strategies. If you're wanting to do more than that because then your you are going to be talking about increasing and decreasing your exposure over time as the voice of the Mark Miller from sound mind investing also here today. Obviously, our host Rob West, I'm Steve Moore will come back and chat about gold or anything else investment related maybe what you do would you gold jewelry people actually do stuff with not wearing it anymore. Get some thoughts on that as well. 800-525-7000 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 button at moneywise. Life.org is everything to H the states with cream. He speaks to what he tells it to do here is the brain to respond to God's glory in Christ, has been revealed, helps cranes.
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You might want to look at when you have a few minutes money wisely. I.org you can also make a donation to our ministry there. Just click the donate tab at the top of the page Mark Miller with us today discussing investing in whatever we discussed investing. Inevitably, the subject comes up with the topic comes up regarding gold gold and silver, precious metals, things like that and so I were chatting about that at the beginning but anything today is investing related call right now 800-525-7000 Orlando, Florida hi Randy, what you question Greg Dykes? I have my life.
No debt unable to save a lot in my life. My parent have to wait quite a bit of money for agility very well. Great for the children not eat that repair for you know the time you leave one there will be what Christ said about that but there right we want to lead your current family right left the paper that my children and grandchildren thought right now I have thought money and decided I've got Marty got but never bought gold before already I had a friend you can't get with Goldie Echo docket yet gold coin get a bunch of different things up. I guess my question is if I like it started into adding gold into my portfolio by gold a number of ways.
Randy and some guy just this? Your thoughts the various ways to buy gold.
Yet the great question Randy and that there are really two main tracks that people can follow for this. The easiest way for most people to add some gold exposure to a portfolio is by just using an ETF in exchange traded fund like a mutual fund that trades like a stock and you. There are ETF that tracks the price of gold.
The biggest one of those is ticker symbol GLD for gold and it can be bought and sold just like any other stock or ETF, and the reason that I lead with that first is just because it's so easy for someone who already has an investing account because it's just like adding another mutual fund to their account. They don't have to do anything fancy, anything special they can just add the amount of gold exposure.
Again, whether that's like 1% or 5% somewhere in between. They can just add that to their existing portfolio and they're done and that will track the price of gold over time now for somebody like you Randy that maybe is thinking much longer term and maybe even thinking about investments. You can leave to your family, you know, you also have the option to add a more or less permanent allocation to gold. By buying physical gold and that would be normally we would recommend that someone going down that path. Consider buying gold bullion coins over time.
Now we've got an article in the RJ newsletter about how to do that you can do that through local coin shop you can carefully investigate online options. There there some some good ones there some bad ones yet to be a little bit careful online but you can can buy gold coins online and that's a very efficient way to accumulate a small amount of gold as well that you would want to have a ton of gold hanging around the house for obvious reasons but for most people if they're talking about a small allocation in their portfolio. You know, having 1/2 dozen to a dozen gold coins either in a home safe or in a safety deposit box at the local bank. That's a very doable option. And again we've got an article that kinda goes into more detail on how to do that for people that are interested in that specifically just follow the link that SMI.org and you'll be able to find that. But those are two pretty easy path that you can use to get started. I love the we have ETF now because you really can track that underlying price of gold, which is what most people want to do as opposed to those who are buying the taking physical possession of the gold which can involve a premium both on the buy and the cell, not to mention securing it. Mark your articles are a great resource in this area so Steve will tell us how to get to those that just want to say thanks for stopping by today. This is been really helpful. Mark, thank you very much God bless your brother those articles, the winning approach to owning gold and video a conversation about owning gold you find it sound mind investing.check. Investing is more than just return it's an expression of who you are and what you value is the way you invest your money reflect your identity as a Christian and eventide design investments for performance and a better world so you can invest with the confidence to reach your financial goals while remaining true to your Christian values and commitments. We call this investing makes the world rejoice more is available and invest eventide.com invest eventide.com 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 ministries.org Moody radio voice of the week for Father's Day is found in Genesis 18, 19, I have chosen so that he will direct his children and his household after him to keep the way of doing what is right and just so that the Lord will bring about what he has promised. Genesis 1819 Moody radio works of the week how one can describe any radio got to focus on Christ starting with reading God's word that also carries over into father is there for somebody that might seek like this one, 800 DL Moody radio March in these uncertain times. You can place an microbrews new book financial help is unsteady to just short assessment will show you exactly where you are now among the 4H's financial wisdom and action plan in writing to transform right now. Request financial support. My slide the gift of $25 moneywise, nine.org Supreme Court has ruled that a landmark civil rights law protects gay, lesbian and transgender people from discrimination in employment. The court decided by 6 to 3 vote today that a key provision of the Civil Rights Act of 1964 that bars discrimination because of sex, among other reasons encompasses bias against gay and lesbian workers. The ruling also covers transgender people on Wall Street, the market shook off the week started and ended broadly higher after the Federal Reserve announced its latest measure to support markets markets turned higher. Immediately after the Fed said it would begin buying individual corporate bonds. The central banks latest move to prop up volatile financial markets that outgained 157 points today. The NASDAQ was up 137 this is SRA news to moneywise live listing meets today's financial choices and decisions and of course the place we go for our wisdom is always God's Word the Bible, here's a number 800-525-7000 Chicago, Illinois hello Sue, what's on your mind. And you happen and didn't get my heart IRAs are higher and so personally would feel better if I moved it somewhere safe until after the election and coronavirus another stop is over Italy and I are semi retired.
We returned from our other jobs and were just working part-time help and I just might be smart to be greedy all their van carrying IRA okay there.
He gets well soon. Not sure what you're saying.
I think my preference is always going to be to let your goals and objectives, prayerful goals and objectives drive the overall financial plan, including the investment strategy, not the circumstances of the day because here's the problem with trying to time that even though your rationale makes sense.
Rob we were at all-time highs. We hope nobody saw Co. vid 19 coming the market had the fastest decline to a bear market in history and then we had this massive recovery, in part due to this incredible stimulus and monetary support by the Federal Reserve at the fact that we may be moving out that Lisa's first wave of coronavirus. Perhaps the economy will recover quickly. This all of these factors is resulted in the net effect of what we've seen in the market moves. The problem is if we try to say yeah but I want to go and just sit on the sideline for the next X number of months because we could retest these lows will soon as you try to do that you're trying to time the market which means the market could move 3000 points higher than where it is today, and then all of a sudden you feel like well were missing it so we need to get back in and then as soon as we do something else comes out of left field in the market. You know takes a dive. Those kinds of moves in and out of the market really are not investing their market timing and that's just not really what we see modeled in Scripture with regard to diversification in a long time horizon having spousal unity in these decisions really just all the principles that should govern how we invest God's money.
So I like to do is take a step back and say why are we investing and what is our plan and we start with praying and saying, Lord, what would you have us to do what lifestyle would be called the student how much is enough. What you do for our giving how we can to support our lifestyle in terms of covering our expenses.
We need to have a spending plan and then whatever resources we have, whatever assets we have. We want to put those to good use in in terms of making sure that they're there to meet our needs on an ongoing basis. If we live a long life in the Lord Terry's perhaps have something to pass on as an inheritance and giving and I wouldn't say just giving at death giving throughout the rest of your life and saying perhaps I have more than I needed.
I can be used by the Lord to invest in the kingdom and serve those around me that are in need, and I'd love for that, really, to be the driver so given all of that context.
Sue, then I would say okay what is your situation look like in terms of our these investments, providing a needed source of income to supplement Social Security whatever else you have part-time work or is this money this just growing because you may need it down the road for long-term care you want to be able to pass it on to the next steward.
Give me a sense of the purpose of these particular Vanguard IRAs and then let's talk about. Perhaps you should think about the investment strategy we are free and we we now take it eyewear actually cared about putting all of that away right into the IRAs at the end of the year and we live without email income that were making and I mean it amount that we are making with our parking And sell it seems like were okay with that we do, we do get to email mission family and Kelly down the road and don't want to ever have to be at Marina my children for anything and SOMETHING for them. It's not a whole bunch right now. I mean, I really feel like I don't play the future be greedy either and I just do like maybe there's something stable little bit like 4000 7000 in money market rate by any need to get interest. Carol wondering if there's something written contract.
I could just cut me to worry every time you don't get so many variables right now well and I think there are, but I think that shouldn't though cause us to deviate from a prudent long-term investment strategies that doesn't get you in a situation where you're trying to pick is the market at the top, is it at the bottom is it going to go back down is going on. The bottom line is we don't know. So that's why we put a prudent investment strategy.
Sue somebody in your situation. First, I would say you probably need some wise counsel and that's what we talk about connecting with a certified kingdom advisor and having somebody who can really put that strategy in place for you, but now just a big picture idea based on what I've heard, would be so let's say you're 65. You did mention your age. Let's say you are you. You may want to have somewhere between 30 and 40% in the stock market which is gonna provide the growth component to this portfolio.
If you don't need the money now. Perhaps even a bit more the rest in fixed income so you might have corporate bonds in treasuries and yes perhaps an allocation to cash in. The idea there is that one piece provides the growth engine. The other piece provides the more stable interested in or to the portfolio and during those periods like we had this year and we might have again next year or five years from now where the market is down. You don't touch those investments and you let them recover because historically that's what always happens. We end up moving to higher ground and that's why you have the cash in what I'll call cash equivalents you can rely on for your income.
You know, in the event you need them to get you out of the position of trying to pick where is the market where's it going next month or next year because that's just a losing battle. It's a great question and I hope that gives you some things to think about and I really would encourage you to go to our website moneywise live.org and if you don't have an investment professional.
Perhaps interview a couple of certified kingdom advisors here and end in the Chicago area and you can just click on find a CK when you go to the website moneywise. I.org. Thank you should assume we do appreciate your call today around about an email before we had another break here. This is from Liz she says dear is debt consolidation better in the long run than settling with the credit card company for less than I owe and I'm not a big fan of debt consolidation which is where you take a new loan to combine existing debts and try to get an interest rate down but in most cases your extending the term because that reduction in interest is often offset by a longer payback period and a lower monthly payment. The other thing I don't like about debt consolidation is in most cases. I realize this is an everybody in most cases were treating the symptom not the problem. The reason we have the debt in the first place is living beyond their means. Debt consolidation provides a temporary Band-Aid without you having to fix the spending or the overspending problem. So what I would do is if you have the ability to pay it off, pay it off if you want to settle in their willing to do that.
Otherwise, I would email@example.com would be a great thank you very much and I will be right back after this brief break stick around this is moneywise to greet you 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 Elmer and breaks it all down in a simple, easy to follow format that makes it the perfect reference to if you're interested in gaining a solid biblical understanding of money, possessions and eternity managing God's money is available in the store moneywise live.org 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 with so many approaches and for the first year you taking that first step to be a real challenge here starting God centered conversation with friends and strangers can be overwhelming with maturity, there may be times when you feel God's not to be bold and have so much more than others, but only as the Holy Spirit get on your own. Does it work for starters, and for always.
Your primary goal is for those arising God through you and for themselves. Being good attracts people to you, but attaching your goodness to God with a simple mention of his name attract people to God sharing your faith is about attraction, not promotion. Your job is ignite revival outside the walls of your church by moving everyone every day closer to Jesus. You need help doing that. Go to RTW.com. Your teens life may be filled with activities but is he missing out on valuable time with mom and dad hi, I'm Mark Gregson with parenting today's teens would push our teens to work hard and piano lesson soccer practice church events and whatever else we cram into their 24 hour day and rarely do we create time to simply sit down and have a real conversation this week. Try making a pie chart of your time with your team is most of your time spent shuttling them from activity to activity or speed chatting at the dinner table. Fact is, kids these days are overcommitted under nurture your team feels constantly tired and worn out, it's time to slow down back off and make your home a healthy place for restoring the soul looking for more parenting wisdom go online to parenting today's teens.org or search for parenting today's teens in your favorite app store 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 mates available when you click the start firstname.lastname@example.org moneywise live, lest I just read an email from Liz. I should probably mention this, I forgot that that we be happy to receive your emails as well just keep it brief, just a couple of lines and then the address is email@example.com we read those questions answer those questions only on here so please don't expect a response via email, but only on air firstname.lastname@example.org Terry is in Syracuse and all the snow was probably melted by now, right Terry, I used to live in Syracuse.
Terry so I sent my heart goes out to you in the winter months. I hug you where I'm I was married three electric avoid my heart got half of my pension and I ended up with have approximately $30,000 sitting in a money market right now I'm debt free in an apartment enough. I feel like with what I make so that if I wanted to buy a condo.
I could I I'm not sure what to do with the 30,000 if I should invest that if I said keep it in the money market in the apartment. Should I look at buying something different and I'm just not sure what to do with that money right now. I've been thinking for.
I'm going into my according to the I can retire approximately three years. So I appreciate that am so sorry to hear about your recent divorce. Terry, let's talk through just a few more details here in your financial situation so you have this 30,000. It's inside an IRA at this point in the money market is at right sitting in the bank money market but it's inside an IRA.
No bank, just put it in there for me. I'm not even sure what it can right now. Okay, that would be the first question is determine what type of account that is telling what assets you have.
Beyond that, he has some liquid savings now okay that's all I have right now okay and what else do you have for retirement. Will you get when you retire from New York as a teacher. What else would you have, to support yourself and perhaps we lost her job if you'd like to call back will try to get you back on.
Here's what I would say and I think this really is a situation where you need to really look at your overall financial plan. There's a lot of questions here and obviously so much of this is new I think we need to really get to a place where starting with kind of the anchor of the spending plan you got a good handle on what expenses you have now what income sources you have. Beyond that, it will be important to then look at your assets, which I realize you're saying this is just the 30,000 and also I love the fact that your debt free, which gives you great flexibility so I think the priority order right now.
Once you had that spending plan in place, assuming you can live well within your means would be first of all we need to have 3 to 6 months either on the side of six months in liquid savings for emergencies other than the emergency fund, then what is ever is left over could be then invested for the longer term as an investment strategy for your future that will supplement whatever other retirement Will Be Coming Your Way, Social Security and anything else from your teachers retirement and I think really, those are to be the key building blocks. This doesn't need to be overly complex.
It's a matter of staying debt free living well within your means having a budget.
Having that emergency fund and then with those remaining dollars that can be invested for the long-term diversified investment strategy in place and to the extent it's less than 50,000 you probably want to look at something like the Schwab intelligent portfolios work better mentor.
Something that would allow you to build a diversified low cost ETF-based portfolio that can just capture the overall returns of the market, so hopefully that's helpful for you Terry we so much appreciate your call today and you know that there's a lot of moving pieces here so I really would recommend you to reach out to one of our coaches moneywise live.org or a certified kingdom advisor there in Syracuse you could get things sorted out for you, perhaps even look at what insurance you have and whether there needs to be any updates. What about your will. You really just need somebody with can provide some godly counsel across Terry.
I'm sorry that we lost your line, but if you're listening if you feel so inclined to hear the rest of Rob's answer. You can always visit our website at today's program will be put up in about an hour or so and all of our programs are archived same day. Just visit moneywise.org and check out the radio page for today's date and again were glad that you called and trust God will bless you and give you direction. Thank you very much.
Richmond, Virginia hi Bruce, what you mortgage situation will call. I have a first mortgage and a second mortgage and I'm considering consolidating the two into either authority or 20 year mortgage and the other caveat is the second mortgage.
Currently I'm paying almost 8% on that first mortgage is 3.99 get into a 30 year mortgage at 3% and a 20 year mortgage at 2.875 and my goal would be the third year of the 20 tackle this thing and pay it off within 15 years, or maybe even sooner.
Yeah, how many years you have left in the first mortgage today. Bruce 22 years thinking on the second year mortgage and math. I just don't know if I should try to pay off the second mortgage on my own with would probably take about three years and then just tackle the first mortgage. I am saving a point there.
What you want one point there and also had heart surgery last year. I got about 10 years. My my my plan is about 10 years prior to retiring on 58 1/2 and I'm just concerned if I were to have any other medical issues or something.
Even though I would tackle this this mortgage. The 30 year or the 20 diligently I could probably even pay 3 to 4 extra payments on the 30 year mortgage every year and the way in here for a run at the time.
I appreciate all the backgrounds couple of thoughts and what if you have good credit you know I like the idea of you combining these in a new 20 year mortgage. I don't like you combining them in a 30 year mortgage.
You have a higher slightly higher rate and is just too easy to settle into that lower monthly payment and you're actually extending the term on both so you know you have the reduction in interest rates. You have the ability to stretch it out and end up paying more interest so I think if you have the ability to fit it in your budget at a new 20 year mortgage. Keep in mind you need to double check those rates, you may be looking at new purchase rates not refi rates which are going to be slightly higher, and so that 30 years, you may struggle even today to get a 3% APR. It's probably going to be a bit higher than that of so take a look at that, but I like the idea of you combining them a new 20 year get under 3%. If you can and then pay aggressively toward paying the all of the both of those off as long as you plan on staying in the home and you got the emergency fund, you're out of debt with regard to other consumer debt.
I think this is a track I could get comfortable with and we appreciate your call today. Thanks very much.
Bruce is squeezing Renée if we can calling from Pearl, Mississippi, and you have a car? Sure I think that 228,000 mile mark the dollar so I had to do some work on it that cost about hundred dollars gone out and get that going to be about $800 so think the thing again and I think along the line. I'm going to need a car. Shortly anyway, what air went out. So go ahead and get going in about 1009 and should I go ahead and try to get a get a car on the packet on this one until it get going.
Boy did I have glad to get yeah sees a 228,000 and 06 Nissan Altima you got 7000 and emergency reserves, but that's it. There's no additional funds there to tell me about your budget. When all your bills are paid. Renée, do you have anything left over at the end of the month, 24, the only mortgage that had a great high over they may need to 300 like that. Okay. All right. And have you ever replace the transmission or what what major repairs have you done last 24 months. No I system could be the could be the actuals, but that would be a one time thing. If it was maybe the CV boots something like that is in some familiar well I'm turning you know is not hectic, I think that no hear my thoughts were bent at a time. You can stay on the line. We could check for second. More France as a mechanic in your church or somebody that you trust the could take a look at it give you a good sense of beyond this cooling system. What is the status of the car. It sounds like it might be the end of its useful life. Though if that's the case I think continuing to save as long as you can buy something as cheap as you can go and unload.
This is the way Renée Stanton I will talk you little bit off the air, but we have to say goodbye right now. Thanks very much moneywise live is a partnership between Moody radio and moneywise media.
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