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July 3, 2020 8:03 am
As we celebrate our nation's great time to think stock of your own freedom. Are you resolving to become financially dependent or falling under the bondage of money. One or the other.
You control your money or your money controls you want is the way to financial freedom. Other to a financial planner and Futurama West feels witchcraft is more the play for you, sir. What's so great about financial independence wealthy. We also described as financial freedom, and it means that you have choices options when you have control over money.
You have a greater ability to decide where and how to live. In some cases even where you work and how much you work. Financial freedom also enables you to be more generous folks often say they like to be able to give more to God's kingdom, but they just can't afford it.
While the more you control the money flowing through your household the more generous you can be so that's what's so great about financial independence okay will you hit that one out of the park. How do we know which paths were really obviously the biggest signpost on the road to financial bondage is that the greater your debt the less free you are, we can quickly go to Proverbs 22, seven, it reads the borrower is slave to the lender pretty clear. That's because when you're in bed you're really working for someone else, not yourself and not God. The more you have to pay out each month to service your debt the less freedom you have to use that money in other ways like serving God more fully. Okay, so avoid debt and were financially free.
That seems kind of simple. Unfortunately, debt is just one form of financial bondage. There's another form that's more difficult to recognize fact, you may not have any debt at all. You can be rolling in money and still be a slave to it. It's the mindset that material things will make you comfortable when you think that way. The more you acquire, the more restricted you become things come to own you, not the other way around. At some point you may start to realize that money isn't freeing you it's enslaving you and keeping you from fulfilling God's purpose for your life.
In fact, although the Bible doesn't say that there is anything inherently wrong with wealth. There are clear warnings about our attitude toward wealth and Steve really comes down to a heart issue.
So what are the danger signs to warn us of this kind of financial bond. At first you think so much about money that you have no peace with God. Your focus is day-to-day rather than the eternal. Another one that might be easier to spot is that you can't give as generously as you would like or think you should an opportunity comes along to be more generous perhaps even to give sacrificially but you just can't make yourself do you think I might need that money for something else. So you don't act when you feel that God even maybe leading you and I think most of us have probably experienced that. Are we all in financial bondage. Well, you're right, it's not unusual to occasionally want to give more than you can but it becomes financial bondage. I believe when it happens to you over and over, and begins to weigh on your heart. Perhaps God's trying to tell you something now here's another danger sign that you're in financial bondage. And that is a lack of contentment that you always want bigger better faster. You're not content with God's provision.
You crave more when you think that way it doesn't matter how much you have, it will never be enough. Are there other or more tangible outward signs of financial bondage.
But I think there are several. For starters, you constantly argue with your spouse about money. Most couples disagree about money occasionally but when it becomes a habit. It's a sign that money is controlling you another outward sign relates back to Deb. If you don't pay off your credit card balance in full each month you're in financial bondage that might make a lot of folks uncomfortable because they're carrying a balance on one or more cards but there's no escaping it. The bigger your card debt, the more you're in financial bondage. So if you're in debt, you have to stop charging things get on a budget, start paying down your debt that we have coaches that can help you do that moneywise.org but if you have the other form of financial bondage with plenty of money and possessions but no peace.
Try giving more giving. I find breaks the power that money can have over us and keep in mind underlying all of God's financial principles is his desire that we remain free to serve him and that's true independence and on this Independence Day weekend. The Liberty Bell is inscribed is 25, to proclaim liberty throughout the land and all more moneywise live what you like your life to be infused with joy. Would you like to interject an internal dimension into even the most ordinary day. Mother, Randy Alcorn says you can when you discover the treasure principle and a concise powerpack style is newly revised and updated book offers a six step plan to finding the pleasure and eternal rewards of the treasure principle what you discover.
Life will never look the same treasure principle is available when you click the store, but moneywise live.org our friends and sound mind investing have been helping Christians reach their financial goals since 1990 with step-by-step guidance for investors. Just getting started making choices in a 401(k) or getting ready for retirement all grounded in consular SMI slogan is financial wisdom for living well. More information is available online.
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We've all experienced or heard tough economic times have caused many folks to face events. They simply cannot say we all have a spiritual called sin that we are unable to pay on our own. Thankfully, 2000 years ago God decided to take care of our sin debt, so he sent his son Jesus Christ down to the cross and placed all of our sin debt upon him now. Any person who receives and accepts Jesus Christ as their personal savior can be forgiven that spiritual debt for all their sin. Some people just keep trying to work things out and hopefully will change until something forces them to make a decision soon death is that point when the decision will be made for you. Don't wait until it is too late to learn more about how to accept this incredible gift and be in a relationship with Jesus. Just call 888 need or go to chat about Jesus.com. And if that is robbing you of freedom and peace of mind. Christian credit counselors can help where a nationwide nonprofit counseling organization has helped over 3000 individuals in the last 27 years get out of credit card debt 80% faster while honoring that data and phone to learn how Christian credit counselors can help you visit Christian credit counselors.org Christian credit counselors.org or call 800-557-1985. This is a reminder that today's program is the number please send us an email at email@example.com. We were chatting about millennial's Gen X the great generation.
I think Rob I'm somewhere between I know I'm a boomer, but I'm thinking I might be partially in the sandwich generation you mentioned. I spend a lot of time at subway so I think maybe I could be part generally, you're automatically adopted into the generator. Visit at least once a week. Oh yeah oh yeah I do try to lose weight by eating their sandwiches. Not sure if it's working 800-525-7000 lima Ohio hello Joan, how can we help you. Hi, I have I have a daughter who is looking to people hi dear and nine Medicare, Medicaid, and collective fidelity.
See Fran raise money on a go flattening account for her to I can spare, and I am wondering if that would affect her benefit in any way sure well John, first of all thank you so much for calling. We certainly know how difficult the situation this is and yet we serve a big God who is on the throne.
So we finished today.
I like to pray for your daughter will certainly ask her moneywise live community to do that as well.
Let's address this particular question though, go fund me as you're aware, but for the benefit of our audiences a crowdfunding site that allows individuals to create campaigns to raise money and often their set up by friends or family of the people with a large need. Unfortunately, proceeds from a go fund me as far as I understand will or may I should say affect your Medicaid eligibility Medicaid. Of course, is a state and federally funded medical assistance program that pays for these medical and long-term care services and to be eligible. As you know you must have income and assets below specified standards and those certainly very bistate wealth funds from a go fund me account typically will push in otherwise or may push and otherwise eligible recipients, income or assets above the eligibility threshold so it would be factored and it would certainly need to be weighed against those requirements and maximums.
If you set one up for yourself and you have access to those funds that will be accountable resource for determining eligibility if someone else sets it up and you don't have access to the funds, it's possible it may not affect eligibility but of course the ability to use it is dependent upon access so a better alternative. And this is where I'm going to direct you may be to set up what's called a supplemental needs trust assets held in this type of trust are ones similar or not considered to be owned by the beneficiary and therefore not considered when determining Medicaid eligibility. So what I would encourage you to do. Joan is to perhaps ask for a recommendation from your church for a godly estate planning attorney. You can certainly go to our website moneywise live.org look for a certified kingdom advisor in your area and ask him or her for that same referral to a godly estate planning attorney, preferably somebody who has experience in this area of special needs to be able to get some counsel around perhaps a trust that may be able to set up be set up to be the recipient of any funds.
Whether it's transferred in from the go fund me account or from other means to be able to provide for her now and in the future, and even beyond your life to make sure that she's provided for and done in such a way that perhaps it could avoid affecting the Medicaid eligibility doesn't make sense though her long and it all gone directly to me, living often, the money and she's not.
It's not in her name now where you know her name. She had now account just because of her situation.
She never had any give her name. Okay so that that may be acceptable then I would certainly raise that question with the attorney that you talk to just to get some counsel there but if she doesn't have access to it. It may in fact be not countable toward the Medicaid eligibility so it's certainly worth looking into. I'm delighted to hear obviously that these folks are at least one individual has set this up. And what a blessing that is but I think given that she's not touched it.
Not using it perhaps doesn't have access to it that may then change whether or not it is accountable, but I would look into that further and explore whether or not for other assets that would come into her name. Even at your death or somebody else's who would provide for her needs. How that needs to be done from an estate planning standpoint, but let me pray for her father. We just lift up this precious one, Lord, your creation, your daughter and just asked that you would show up and in her situation were you know every cell in her body or her creator and so we ask for the Lord is the great physician for you to intervene. We ask for wisdom as she and her mom navigate these situations were to pray that the body of Christ would rally around her, as is already being done to provide support and encouragement. Pray that through this difficult situation where you would draw her to yourself and were just gonna leave her in your hands and tell you today. We love you and we trust you. In Jesus name, amen and amen sojourn again if you don't have a financial planning attorney in your church. You can certainly easily find one when you visit moneywise.org just scroll toward the bottom of the page easy to find for your area and we wish you the best with that. Thank you very very much. The squeeze in one more Plano Texas Irene what you question for Rob.
I think it so very much for taking my call mother of 524-year-old extraordinary young lady. She graduated from University of a little bit over a year ago she moved back in with me and greatly I try to refinance my home just to get rid of the MIB on my FHA loan and unfortunately my application was benign because I cosigned for her student loan to be able to get after basically she needs to remove my name from Carlisle and she's been very responsible in making our monthly payment. Payment the chart by $5000 a month and that we just need to find some of the best option for her. So please help us well. I certainly can understand the challenge here.
We should be grateful that she is able to make those payments and she's been doing that on a timely basis of this is, as in impacting your credit negatively. Apart from the fact that this is debt. Obviously, this being factored into whether or not you qualify for this mortgage.
Really the only way to take your name off. This is really one of three situations number one, it gets paid off in full. Of course that requires the resources to do so. So I realize that's not easy to do.
The second would be to refinance it and be it to be refinanced in her name only, given that she's pay down some of it and perhaps now that she's making good salary if it's possible for her to qualify on her own and take the full burden of it as she refinances it, that would be the ability to get you off the loan. Obviously she just needs to be aware that if she goes from a federal loan. If these are federal loans to a private loan when it's refinanced, then she's gonna lose some of the income payment. Income-based payment options and flexibility offered through the federal loan program so just be aware of that. But that would accomplish this purpose. The other opportunity.
If these are private loans would be to see if they would be willing to take the name off.
But again, they're not likely to do that and typically are willing because they don't have to. And they'd rather have more people to go after for recourse and she would have to be able to qualify on her own.
If she did that so I think the best option for you at this point if you're willing again if it's federal to move to a private loan would be to look at refinancing, assuming she can qualify on her own with her own assets, credit history, and income. Do you think that's possible. Irene well worked willing to seek the problem we've been praying about it.
How much went down which direction to go private loan and so yet she called that bank basically if she could refinanced her yet she needs to apply what just wanted to make sure that that could be the best option for her. Any other that it can be recommended for this type of thing that he can be more widely yeah well I think at this point the opportunity is really just a look at the lenders out there.
There are more now than there have ever been. I would check out Thrive and I would check so fly. You can look at Ernest Amini if you just do a Google search you'll see all of the lenders that are out there that specialize in student loans. You can compare the rates and of course you would need to see whether or not she is eligible to qualify on her own nerves wallet.com is a great site just to compare the lenders Rob if she hasn't missing payments in the last five years since 2000.
Teen well you're listening to God.
Here's 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 store moneywise live.org to which the most mysterious Christian circles that we can we increase the prayer help matter or change anything.what time we are to pray never waste our time about everything. Everything can be by prayer, there is never anything too small or too hard as what happens in the answer is we can never truly been listening to Eastern 30 central line, no problem buying a home is the largest most nerve-racking perches. Most of his ever making it doesn't help that you're entering a maze of unfamiliar words and confusing options that can leave you intimidated frustrated and afraid to been taken advantage of navigating the mortgage amazed by Dale Vermillion help you clear up the confusion on record nerves and make the best mortgage decisions possible with confidence navigating the mortgage maze available when you click the start button moneywise live.org moneywise live where we need each day. Courage one another to manage her money fully and effectively. That includes things like mortgages, student loans around that last caller was a mom who had cosigned work for her daughter five years ago in 2014. Since none of the payments have been missed, apparently from 2014 until 2019. I would think I would certainly hope that the lender this time around might find a way to renegotiate that without needing a cosigner. What you think. Well I just really depends on her income and credit history obviously was going to hurt her is that she has a lack of credit history, but it doesn't mean that this is out of the question mean. Certainly there are number of lenders that really specialize in this area. So really the steps are. First of all check rates with multiple lenders and again, nerves, wallet.com is will a student loan hero.com would be great sites to choose a lender that matches the terms that you like lowest interest rate of course documents ready.
She's going to need proof of income and that all of her statements course ID and proof of citizenship and then make sure you keep paying your loans as you wait for approval. You don't want to do anything until you know this is a done deal and it's been refinanced, but I think that is the direction to go.
If mom wants to get off the loan and there certainly a good chance that she could in fact rent a Rob West as our nerd host and you like that don't you nerd wallet EE just your title like that. That is because different Spokane, Washington hey Justin, thanks so much for your patience.
What your question my question is you're going to switch to employers in my previous employer profit sharing plan so I have some money in profit sharing plan and my new employer to have a 401(k) set up a 401(k) putting money into that. So my question is, what should I do with this profit-sharing money set aside for retirement could fill in that employer's name my name personally but you know there administering the plan I got so do with that.
You well because your profit-sharing plan. Justin is considered qualified retirement plan by the IRS.
The assets within it cash or securities can be easily rolled into an IRA and that's actually what I recommend you do so you have to decide how the assets transferred some cases you can just transfer them in kind, meaning the assets. The cash that stocks, mutual fund shares. If the institution you're transferring them to with the new IRA can hold them then you can transfer them over as is under that rollover IRA. Alternatively, you can elect to have the assets sold the cash proceeds would then be transferred and once the cash comes into the account, then you could make your investment decisions.
So I think the next step for you if you go that direction, which by the way would give you complete flexibility as to how you want that managed either yourself or by a professional as well as the investment options you choose you to have access to literally any stock, bond, mutual fund exchange traded fund that you like, which gives you a lot of flexibility so then at that point, the next step is to decide, okay, where is my custodian or who is my custodian where you want to open that IRA, I would throw out Vanguard, I would throw out Schwab I would throw out perhaps betterment is more of a newer kind of app driven web driven approach, but any one of those would be good if you have a current relationship with investment advisory or a financial professional. You can open it with that professional as well, but that would be the direction I'd had Justin to some extent great know where to put it.
So that really helps out a lot.
Thank you. You're very welcome. Thanks for calling. We appreciate you listening and thank you Justin again Robin email question Gerard.
You teach about putting at least 20% down payment on a house, what your guidance for down payment on buying a car is at the same yeah that's a great question. I do use the same 20% rule for a car. Never remember car is a depreciating asset as opposed to a house which is well.
I'm more inclined to borrow for a home because the value is going to be preserved car not so much. I'd rather you save and buy for cash, but if you can't do that 20% down to make sure that you keep your payment low and keep you out of the position where your upside down at any point right if you have an email question for Rob it's firstname.lastname@example.org. Whatever you do don't buy a Pontiac don't make you listening to moneywise live with Rob West. Today's broadcast is recorded so we won't be taking any calls but we have some calls lined up in some great information coming your way, but I think you'll find usable at the very very Mrs. moneywise live on Steve Moore 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 that eventide we design investments for performance and a better world. 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 email@example.com invest eventide.com Christian healthcare ministries enables believers to show love for one another by sharing each other's health costs through CHN's voluntary health cost-sharing programs members uplift each other spiritually and financially. CHN was an eligible option under the affordable care act and a Better Business Bureau accredited charity interested. Learn more by calling 800-791-6225 or online at CH ministries.more Moody radio verse of the week for this Independence Day is found in John 834 through 36 Jesus answered them, truly, truly, I say to you everyone who practices sin is a slave to sin. Sleep does not remain in the house forever. The sun remains forever.
So if the son sets you free will be free. John 834 through 36 Moody radio verse of the week one more reason why the ministry of money radio will import. This may be the only opportunity. Somebody might have known that the gospel change lives and so that's why it's important we need change lives change lives that will follow Christ radio helps listeners like call one 800.org money and life run on the same track.
Unfortunately, sometimes it seems like your money is heading in a different direction from your goals and 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 live out of work under Pres. Rob will be at Mount Rushmore this evening to pick up the Independence Day weekend the president will join several thousand people for periodic display of fireworks at the national Memorial as governor is urging people to where Masten skipped Fourth of July family gatherings as the states coronavirus totally rises when Gov. Gavin Newsom says it rely on people using common sense rather than strict enforcement of lease covering order rock is enforcing positions along the border with Turkey to try to prevent the Turkish military advancing deeper into Iraqi territory.
After two weeks of air strikes is a growth continues to target Kurdish rebels in northern Iraq. Wall Street closed today in observance of Independence Day.
It will reopen Monday after a solid holiday shortened week. This is SRA news this moneywise. He's Rob West and Steve Moore and you are Rick and Ashland, Ohio. We appreciate your presence sir what your quest show you the emergency and that made a commitment feeling very convicted that economical scoring more comfort you give it back to the Lord's work. On the other aspect might like question is should I simultaneously work on eliminating that and building up you know that emergency fund or I'm really not paying any interest on our monthly without paying interest on it but I struggle with the psychological aspect of and really don't basically lowball follow-up question regarding retirement stuff.
After that if you start with the first yeah Rick. I love what you're describing here because I completely concur with your approach and by the way Steve mentioned a moment ago are brand-new websites. If you go to moneywise live.org and by the way, it's completely mobile optimized and so if you're out and about closure not driving. You can pull it up on the tablet or smart phone you still see it really well but about three quarters the way down is a diagram we called the freedom target and basically at level I. You need to do exactly what you're focused on you want to track your monthly spending you want to start giving. If you're not already you want to repay all your credit card debt and you want to save for emergencies.
Now here's what we say and you'll see this on the chart we say. If, as long as you have credit card debt. If you don't have the emergency fund, then I would stop at $1500 in emergency savings and focus really every extra dollar on repaying that credit card debt once the credit card debt is eliminated and I realize you've juggled in such a way that you're not paying any interest, but I still want to get rid of it once it's paid off, then let's really focus on getting that emergency savings up to 3 to 6 months expenses before we move into level to which in the O in the growth category. Oh, you want to repay all debt except the mortgage would go after consumer debt next and then in the grow area we want to move toward setting aside 10 to 15% of your paycheck toward retirement and that's really, in my view, the priority order okay.
Helpful my questionnaire with the no I have brought one year ago and I was wondering shut max out first is that the best way to go about his target and then look at the 403B options tax benefit as well.
Sure you get any matching Rick on the 43B okay I start with the Roth and fully fund the Roth for you and if you're married for you and your wife and then I pivoted over to the 403B for additional giving. You're right.
I like the idea of having money going into each bucket because with the Roth you don't get the deductions. It is no benefit to your taxes in terms of tax reduction in the current year, but you enjoy that tax-free growth in tax-free withdrawals in retirement of the benefit to the 401(k). If you use it to supplement the Roth beyond fully contributing to the Roth in this calendar year, then you you get the tax benefit now in the tax-deferred growth so I go Roth first and then if you have more room when you go 10 to 15% of your paycheck and ideas. The 43B, second grade questions Rick and we hope that helps you sound like you're really moving and heading in the right direction. God bless you up to New York State and Jed, what's on your mind today sir, call sir. Thank you Jed. My wife, nice job of paying down our mortar or paying off your mortgage. I'll have my house paid free and clear about, 45, but that, the cost and we haven't done anything in the line of little bit of savings, but we've done very little retirement. However, teacher, New York, and I have New York State teacher retirement hopefully waiting for me and I hope that no but I want to get your input on that. Well did it all comes down to what your need is in retirement. Based on the lifestyle you want to be able to maintain once you're no longer working. So I recommend you take some time and cost a little bit but shouldn't be terribly expensive and will be well worth the cost to hire a financial planner not even necessarily to take over with investment management or anything like that but just by some time for somebody to really provide some retirement and financial planning for you and your wife to be able to look at the various guaranteed income sources you're expecting in retirement. Look at your current lifestyle. Compare that against what you might expect, both from Social Security and the teachers retirement as well as just giving a once over to all the other areas.
The risk and the insurance policies you have and and so forth. And if you're saving for college. Those types of things and really look at whether this is going to be sufficient and you should just go full steam ahead on paying off the house, or if not if you're going to need to supplement that with some additional retirement savings. I suspect this is the better option in terms of maximizing the compounding that might be there.
What you may want to do is split that extra money going toward the mortgage perhaps going into retirement have toward the house.
Maybe you don't pay it off quite as quickly, but at least you benefit from getting some of that money working for you on the tax-deferred basis in a Roth IRA or something like that but I think having a plan and knowing whether you're on track ahead or behind is really important. So you're not just guessing and hoping that everything turns out okay. You really have a target that you're shooting for. The other thing that's going to do for you Jed is once you know that you're doing everything you need to do to have enough whatever that is for you and your family.
Then it allows you to accelerate your giving because you know hey I'm on track. This is kind of the financial finish line for me and anything beyond that, I'm going to use to ultimately be completely debt-free and perhaps respond to more giving opportunities. So if you don't have that person in your life to go to moneywise live.org and look for a certified kingdom advisor in your area. This is gonna be a financial planner who is also a specialist in the application of a biblical worldview to financial decision-making and that's with that designation is all about, and you can find that someone right there in upstate New York.
You can be with you. Okay, one more.
I have a few seconds left. So grow quick I look at like my projected retirement equivalent. What I'm currently making. I will be how I will have any debt. I will have four wonderful children in the house, so that might I'm looking at that I will living out now. Why can I live on that. Well, depending on what study you look at Jed because what you just said you're not saving for retirement over the kids are off the payroll. You don't have as much need for insurance policies like life insurance.
Once you have your savings to take care of your living expenses.
Both you and your wife typically retirees will find the live on anywhere from 65 to 80% of their pre-retirement income so you may be right on track and I think that's where the benefit of the retirement planning comes and so you have that confidence to know you got a plan were working the plan were following biblical principles giving generously were getting out of debt, you can really enjoy than real financial freedom. Unless of course your four children moved to all four spots on the compass and then want to spend a lot of time and money visiting that we wish you the best. More moneywise live do you know if you have enough enough money house. Do you know how much is enough. If not, one blue can help with this book. Master your money a step-by-step plan for experiencing financial contentment. Learn how to save and invest and give wisely create a long-term financial plan and how to get out of debt. Find it all in master your money by Ron blue available when you click the start button moneywise live.org I am a car guy here to help you understand the urgency and how fun it is to share your faith in every opportunity. Most of you listening to me right know you should be, share your faith, but have no incident doing none you've never done it. You never will.
And if you stay with that mindset. You'll never know how being a Christian is five. Do you see the fear in the eyes of everyone you talk to these days the world and panic searching for truth that you have that piece that you enjoy is hugely attractedin the terrors of this world and the next one begins with a question you can answer the nature Bible study would jump for joy when the Holy Spirit directed to the right. Scripture enters nothing like sharing scriptures answer the questions with the person who asked the question and watching their reaction. There's nothing more exciting than knowing God just use you.
At least somebody join us and ignite America.com for ministry trip was my Sunday afternoon family special, but my older son always started his barrage of questions until I finally looked over the back seat and just said two words trust me latte this covert virus thing feels like a massive ministry trip and we have questions.
What were going to be when it's over, there's a lot of fear and uncertainty and loneliness and grieving for 2000 years people found one person they could trust with their fears and their past and their future and their life. That's Jesus proved it can be trusted when he done an awful death penalty to pay for our sins and when he conquered death with his resurrection. The Bible says we know what real love is because Jesus gave up his life for us.
If you're ready to trust your life your soul to this man who looked like no one else were ready to help contact us at 888 need him or chat about Jesus.com you can finally be forgiven and you finally be safe. The financial wealth you leave behind could be the best thing that ever happened to your loved ones or the worst, and it 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 this is a final segment of the broadcast is courting. Thanks so much for being with us today and we hope will stick around and enjoy the rest of the program. Thanks so much for tuning in for listening and for letting others know about us.
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It's moneywise live with Rob West. You can also find us online moneywise live.org Hobart Indiana Dalia I disdain you and your husband may be just a little, maybe disagreeing on something. Maybe we can help you if argument this agreement have I think property management and so on. They are allowed to put money into the property and thereby and had been have been getting on him putting in an and often by he really does and he looked out for his employee and he really want that benefit as much at think about putting more will get a bonus at the end of the year. Management will be usually hand on that bonnet and our tax return and you know what we were.
But money will usually take a couple thousand and put it toward impacting and I agreed because we have a credit card 108 and then we don't have our mic. Lakemont dating that wound like we did not need to be allowed back in the hot you know that for investment, but like we done and out so we can come to an agreement on sure shirts. Well, I certainly understand.
It does feel like you're leaving something behind and leaving money on the table and you certainly don't ever want to do that but I would really agree with you Dalia that it is important to have your financial foundation under you. Because remember it, it might sound like a better idea to be investing today, especially piece given in a preferred access to real estate investment opportunity. That's the company's business and perhaps the employees are able to get fractional shares, and in one of those investment trusts are properties now since this is an event driven recession, we expect things to turn around rapidly in the coming months. But what if they don't then if you got credit card debt and the lack of emergency savings and something unexpected comes up, and now were just really a difficult and tight spot. I think the other point is that anytime you're paying credit card debt. The degree to which you pay that off is a guaranteed return equivalent to the interest rate of that credit card whether that's eight or 12 or 15%. Nobody's gonna guarantee you in the real estate market. A 12 or 15% and so when you pay that money off even if you're playing the balance transfer game. I still like you being completely out of credit card debt so the visual on this is available on our website right there on the homepage of moneywise live.org you and your husband may want to check it out just to get a picture of in the four areas that we allocate money, live give Owen grow. What's the level I priorities.
The level II priorities in level III unit level I.
In addition to tracking your spending and beginning your giving you want to repay all credit card debt and then you want to save for emergencies.
I'd try to save $1500 and then stop with us emergency savings until the credit card debt is completely retired and then I go back and get that up to three months now. Once that's done I love the idea of taking advantage of retirement savings, long-term savings, in fact, I'd say your next step is to get at least 10 to 15% of every paycheck going to some sort of retirement savings. Whether that's a Roth IRA or 401(k) or an investment opportunity like you're describing through your husband's work. The only other thing I would mention is just be careful not to be overly invested in one particular asset or opportunity, you know. Ecclesiastes 11 reminds us that we should be well diversified and you just want to make sure that you don't have all your eggs in one basket and that's why we like to start with reinvesting their 401(k) or an IRA where you can be very well diversified in the stock and bond market, but that doesn't mean the real estate is not is a great option. It is just be sure that you will have everything tied up in one particular commercial property or investment opportunity.
But other than that I think the bottom line is I would prioritize the credit cards in the emergency savings first deli were where glad that you called today and we wish you guys the best of the obviously another important aspect is just keeping those lines of communication open so that you, your husband can talk about these things on a regular basis without lots of angst. Again, thanks for calling. Let's see Paul I understand you're in your car somewhere in the middle of Ohio. Ha yeah actually I am part now okay we can hear you, great. We appreciate your pulling over what you question all actually but in any event, I started a new, about five months ago and the only data I mean I currently have my mortgage got savings built up and all the rest. So I'm looking to retirement and they do offer a 401(k) here which they they do match 50% up to 5.6% and they'll put 3%. The maximum but I you II forget the name of that investment tool that I was looking up the funds that were offered through through Wells Fargo. I and the majority of the funds that are offered and are not biblically no responsible type funds they support abortion.
All the rest. So I am kind of torn I just go and start my own IRA or do I take advantage of the match what you know what's I do not yeah this is a great question. Paul and I think it ultimately comes down to your own convictions. You know what we see and we talked about this yesterday and the program what we see in Scripture from Jesus himself is the affirmation of the fact that as stewards, we should be investors Jesus talked about investing often and the investor in just about every one of his parables were talks about investing, which was quite a few of them. The investor is the good guy, not the bad guy and we see that part of being a faithful steward is getting a good return on our investments are money God's money that were managing should be growing and so we see certainly affirmation around investing and then we see principles around investing around the idea.
We just talked about the last caller. Ecclesiastes 11 to that we should be diversified that we should take a long time horizon that we should be have husband-and-wife unity of all of these ideas are important.
Now when we go beyond that into applying a filter where we want to align our investments with our values. I would say that really is a Romans 14 issue where each one needs to be fully convinced in their own mind. I don't think it's clear in Scripture that we should screen out every company on the secondary market for their either primary or business activity or what they do with their corporate profits one way or the other. I think that's a conviction decision. It's really a conscience matter, and so I think really as you approach that you need to be on your knees thing, Lord, what would you have me to do the exciting thing is Paul there are some great resources out there both to screen the investment options including mutual funds that are out there, including those in your 401(k) like evaluator.com the E valuator.com is one of them. If you have a conviction around screening investments in that way so that you can do that and I would say if you don't have the option to to really screen your investments in your 401(k) and you feel like you have a conviction you and your your wife that you want to stay away from those types of investments that I think you need to follow that and the next option would be to go to a an IRA like you're talking about but I think that's ultimately a decision each person needs to make in terms of where they're coming down. So I encourage you to pray about it and then once you come to that conclusion then I think there are some great options for you to proceed accordingly Paul were glad that you called today and those are great questions you're asking yourself. I know you will pray about this and we believe God is compelling you to do. Thanks so much. Miami, Florida Anthony I we have about a minute and 1/2 and squeeze it in right okay great thank you. Get about.yet credit card and you will always and I have a IRA… Ever Y or did anything with about 56,000 I have two pensions that I'll get for my retirement, this was just an extra added thing.
Question for you is it. Should I go heading The IRA and pay off all the stop. I'll get the light right now or should I refinance my house and go that route. See you about 25,000.
What is your age. Anthony, I'm 49 okay I know I'm I'm not a real fan of either of those options. I don't like you tapping the IRA simply because you're going to be you to pay the 10% penalty. Everything you take out is going to be added to your taxable income. So you'll take it at least a 30% haircut on whatever you withdrawal and that money is no longer available to continue to be invested in compounding for your future.
I don't like you refinancing the house because that's going to take unsecured debt and make it secured by your home, which we never want to do. So I think really my best option. If I were you would be one of two things. One start with your spending plan. See what you can cut back to free up money to pay down debt and snowball it try to pay it off as quick as you can or two with the credit cards of visit with our firstname.lastname@example.org and see if they can get those interest rates down, which should allow you to pay off the credit card debt 80% faster and paid in full. We appreciate your question though in your call today where you sure do. Anthony, thank you very very much.
We got a lots of callers on today I I like the fact that lots of people are thinking about paying off their debt Robin.
Hopefully I got his moving in men and women's hearts.
In that regard. This is moneywise live with Rob West thanks you for thanks much for listening and for tuning in today.
I thanks to our production staff Judy Amy, Jim and Gabby with us today. The T of course for the total package. Join us again tomorrow