Buying Fractional Shares

Egyptians may have been the first to use fractional numbers around 1800 BC these days. Some mathematicians still prefer fractions over decimals, but I think their argument is all right. Fractions are more popular than ever these days in the world of investing taking them advises president Rob West talks about buying just a stock called rational investing. Take your calls on anything financial 800-525-7000 800-525-7000 times more buying fragile shares next moneywise line. Okay Rob, this might be a new topic for many of our listeners. Why is fractional investing becoming more popular these days. Well I think most of the attraction is because it allows you to invest without a lot of money I shares of some stocks and ETF's are exchange traded funds are so expensive that many investors can't afford or don't want to risk owning all share.

So it's like enjoying pizza by the slice instead of having to buy the whole pie hunk a great analogy yeah I lets bite a little deeper into fractional shares. Is this really a new idea, yes, it is relatively new. Several apps now allow you to buy a piece of his sharing some major brokers are also moving into that space as well.

But that wasn't always the case. Steve in the past you had to purchase at least one full share of a company. Well that left out a lot of small investors but now with fractional investing.

You can own part of a company or fund by purging us purchasing as little as 1% of a share or one 100 okay give us an example.

Sure, let's say you want to buy Amazon.

Let's say it's selling for $3000 a share, which by the way it has traded at that level with fractional investing, you could own a piece of Amazon for just $30.

What's happening is fractional. Brokers pull the money of thousands of small investors to buy shares of a given stock instead of those investors having to do it individually. Okay, so now I own. Let's say, just a tiny fraction of a given stock. Is that really the main selling points for fractional investing. Well, it certainly allows you to own part of something otherwise couldn't afford. But no, that's not the main selling point. Proponents of fractional investing will tell you that it's a great way to diversify your holdings with limited funds allows you to own a much greater variety of stocks and funds with the same amount of money that before so you had to invest in a single company. So, for example, with just $1000. You can invest in dozens of stocks are ETF's.

Okay, so what to what else should our listeners know before they jump into something like this.

Well, as we mentioned, there's now several apps you can download to do this, including stash Robin Hood and acorns. We also mentioned larger brokerages, Fidelity and Schwab are also getting into the fractional investing game that now those are good options if you're specifically interested in owning part of a pricey stock like Amazon or Apple will enable you to do that but if you want to get a better return than banks can give on a small amount of money I prefer wealth front or betterment both part of the fin tech movement both have great websites and smart phone apps.

Okay well and again this is been around for a while, but people just haven't heard about it. I would imagine maybe the Internet has exposed more people to this this concept and it's an easier way to do this kind of thing. Well it's exactly right. Steve from in their wonderful resources out there for folks to explore this you want to make sure you're ready to invest. So before you move into this. It doesn't make much sense to put money into something like fresh fractional shares. If you have credit card that any money you make will be dwarfed by what you're paying interest on a credit card balance of pay that off first. Also, if you want to have your emergency savings in place. I would recommend you do that first that we recommend a course 3 to 6 months living expenses and something like an online savings account to get the maximum interest rate but even then fractional investing shouldn't be your first choice. If employers offer a 401(k) retirement plan with matching contributions. I would absolutely contribute enough to that first, it's free money of course. And once you've done that, it would be better to put any remaining funds into a traditional or a Roth IRA because those are tax-advantaged but to be fair, Fidelity now allows you to buy fractional shares within an IRA or even an HSA that would be a savings account you can want to check that out as well so bottom line.

This is a new trend in the investing world something for you to check out to be aware of, especially if you have just a little bit of money to put to use in the stock market all right and if you want to buy just a piece of pizza Domino's and Papa John's are publicly traded companies just started 800-525-7000. Many people are experiencing financial challenges such as credit card debt downsizing that in jobs savings. In fact, more than half of all divorces are the result of financial pressures at home, but there's hope in your money counts typical financial expert Howard date shows that the Bible is a veritable managing your finances will discover the profound relationship your money count is available when you click the start button moneywise live.org when it comes to investing guidance you want advice, grounded in God's word. That's the approach offered by sound mind investing.

SMI has helped tens of thousands of Christians acquire investing wisdom and confidence. Regardless of your investing experience or how much you have to invest can learn to be a wise and faithful steward in the area of investing a short video webinar on profit and peace of mind is available now sound mind investing.org at my family's favorite ice cream chain will you know the one where you can choose your favorite ingredients and then they mix almost incredible flavors together right in front of you create your ice cream masterpiece. You can choose one of three sizes. The I really like it.

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Robert going to Manchester New Jersey and Andrea. What's on your mind wandering my 401(k) goal. The retiring and I'm going to get a pension at 330 that night. $1800 401(k) 121,000 and I gonna continue working at her. Should I put into a cold for own IRA specifically invested in gold.

That's what you're asking about 121 St. Delhi IRA and I can take that out and put it into I wanted put some goal. I wanted to like a little bad and hurt her got you speaking like about fractional investing that another option yeah yeah let's talk about that so I like this idea that you're thinking about taking your surplus and putting it away for the future. I think we gotta make sure you have your financial foundation in place so starting with this idea that you have a spending plan. You have a real accurate accounting of what comes and goes out each month. You know what your fixed and discretionary expenses and including those nonrecurring expenses that you have a plan to control the flow of money in and out with that margin. We then need to prioritize and by margin I mean excess above and beyond your bills on a monthly basis, including what you might be sticking aside for those quarterly or semiannual or annual payments that come up with the priority order of those funds.

I would say make sure you're giving first that's gonna break the grip of money over your life. Beyond that want to make sure we paid off your consumer debt credit cards want to make sure that you have an emergency fund of 3 to 6 months expenses and then once that's in place. I go back to paying down that consumer debt. If you have a car loan anything else beyond that want to make sure that you're taking advantage of the full matching inside a 401(k) and with the goal of trying to get up to 10 to 15% of your income going into long-term retirement savings. Beyond that, being able to continue to invest alongside what other goals you might have short-term savings goals. Additional giving goals is a good thing. Now if you had 100 a month beyond your 401(k) contributions to systematically put into investments. I wouldn't choose gold for that, you might say gold is more like insurance than an investment, and here's why you would people fear currency collapses stock market collapse. They tend to buy gold.

On the one hand, though it's true, the gold tends to rise when the dollar falls, the US dollar. That is, but on the other hand, if the market takes a nosedive goal doesn't always go up because it we might see a collapse in demand as people are really struggling so you have to look at gold is another asset class for diversifying your portfolio when it becomes large enough because I would say for most people 5% in gold is probably enough. It's a hedge against inflation and a falling dollar, but as a pure investment Andrea. It really leaves a lot to be desired, mainly because of its volatility.

It's prone to huge spikes in collapses and when you just look at the general performance of the market versus gold over a long period of time which will see as it doesn't perform quite as well is the broad market.

The stock market, but it actually has more volatility. Which means it has more risk. So what I would say is with that hundred dollars a month.

I'd rather see you go into a high-quality mutual fund or exchange traded fund where you're capturing the big market indexes so you're not trying to pick winners and losers, not trying to buy fractional shares or investing in gold or other precious metals or commodities. You're just capturing the long-term moves of the market and make sure with that money or looking out at least 10 years. So where you go with that. Well I'd had over to our friends@soundmindinvesting.org to begin reading and learning find some ideas on some really high quality no-load mutual funds and I'd like to do one of the thing. If you'll stay on the line. Let us send you a copy of Austin Pryor's book the sound mind investing handbook. I think it will give you a great leg up on everything you need to know on investing God's way. Andrea, thank you very much. You stand in line will get that book right out to you. It makes for some great time reading. That's what my heavy reading next big book.

It is heavy just Steve. Speaking of gold if you've heard, but space mining of gold. As you know, supposedly the next frontier places and 70, no, no MySpace. Apparently the asteroid belt holds minerals worth get this Quintilian of dollars and if they can figure out how to land some mining vehicles out there will gold may be as common as I don't know the gravel parking lot or something like that.

Are you reading the National Enquirer when you go to the grocery store you slow down at the line, don't you know that's not my kind of okay space mining that will be opening topic next week sometime. East Moline, Illinois hey Teresa, thanks for putting up with this.

How can we help every day on my way home work. I keep quiet. So I did what.

Today the day Teresa was just a question that was on your heart 104� boy got up a little like I like and how can we help you when your dog. I have $100,000 life insurance policy that was taken out when our three kids were little, at 65 I would have any more expires. I also have a $10,000 life insurance for the company I work with, but find that also.

So my question is my insurance man would like for me to take out a whole life annually paid back, but do I need to know really compared to the term that I now yeah you know, I don't think the starting point here Teresa is to ask the question, do I need insurance.

Is there somebody depending upon me, such that if the Lord were to call you home your income goes away that that would create a hardship for somebody else. It's either counting on your income or they would have an increase in expenses or they be left with a significant debt that they didn't have the resources to pay, and if the answer is no, then essentially you no longer have a need for the death benefit that was afforded to you through these life insurance policies which is a good thing because you've been saving and you now have assets built up you've got your income coming in retirement, probably through Social Security and maybe a 401(k) or what other other vehicles you have and really if something were to happen to you. There's not a need for that life insurance to be paid out whole life insurance is combining that death benefit which we've just said, potentially, you no longer need, but I want to hear from you on that. Combining that with the savings vehicle but it's a very expensive way to do it, you lose a lot of flexibility and I'd rather you save out side of an insurance product they pay a lot of high commissions and so it's often sold rather than bought. If you know what I mean and you know I think it's probably not the very best thing for you at this point, but you tell me is there a need for life insurance at this point is somebody counting on your income three grown children and their doing their own thing with their family and I have about it and I'm horny horny about my cemetery plot. I got opening the closing Daniel all that for the LaPlante on front but I know I need to buy a casket or something. So there beyond cemetery Dr. Nino to come and start making payments on a casket, but I don't want to do that you like so if I had whole insurance without help pay for that or that works well as long as you make to do the plans in advance and the funerals.org would be a great way to do that to get some more information about what decisions need to be made. All you need do you make those plans you're going to have assets that would allow for whoever is going to be making those decisions in carrying your wishes out at that time. There's got to be resources there to take care of that now. One option if you want everything paid in advance, which is certainly a great way to go because it takes a lot of the extra burden out of of an already difficult period of time where you know there waiting to settle your state it's going through probate.

There's not assets that are readily available and you certainly could make some of that preplanning decision-making and go ahead and and start making payments to that, but you don't. You don't need a life insurance policy for that.

It sounds like most of it is Artie been paid for and what hasn't been paid for. You could go ahead and take care of in advance. Teresa, thank you very much for calling. We have to hit a break here only ask a question as far as golf is concerned.

Is Tiger going to win another big one when you think all know that you know you're the one who works in the course. We just meander around here on the radio we were talking about golf anyway.

But I Teresa got blessed.

Thanks very much. Where your sunblock drink plenty of water out there hundred five of you know the big story in golf related Tiger Woods's son just wanted his second term book press fascinating hundred 525-7000 Rob Rob West China like I'm Steve be right back. Many people adopt an attitude toward marriage and finances that it will all work out somehow.

But sadly, it often doesn't financial woes can devastate a marriage but there is a better way. God's way, money, and marriage counseling by Howard Dean will help you discover God's approach to growing your finances strengthening your relationship with your mate and cultivating godly joy, money, and marriage God's way is available and money wise live.org to which the relationship.start stop right there working into a loving relationship across the board don't agree on match pretty good indication that we might be inclined to. Commentators agree that God is more of a description and condition.all things work together almost across the board because people much smarter than he. Everything is no disgrace to the study of Scripture online today is a perfect tool. Many people adopt an attitude toward marriage and finances that it will all work out somehow. But sadly, it often doesn't financial woes can devastate a marriage but there is a better way. God's way, money and marriage God's way by Howard date will help you discover God's approach to growing your finances strengthening your relationship, your mate and cultivating godly joy, money, and marriage God's way and money wise live.org your calls and questions at 805 five 7000. Let's go West a Bit Ln., Idaho gator. We appreciate your patience or what's on your mind will build rising rates as all ships I'm heavily invested physically and still and it's getting to the point that it storage issue and I'm wondering my question is should I take some of that and converted to gold.

It doesn't seem like I make as much when the market rises, it would still else in a quandary. In my mind.

How do I had a light do that. What would be the wise, yeah, well gator gets a great question so as you're probably well aware silver price is going up steadily since March the now around 27 or so dollars an ounce in both gold and silver have attractive features.

Gold is the better investment over the average precious metals investor has a course a larger liquid market is driven mostly by investment and jewelry demand the price of gold is less volatile than that of silver so that it's a nice feature as well. A source can be more speculative and really has a stronger relationship to economic activity which obviously as the economy has rebounded here following what became the quickest move from a bare marble market to a bear market and entering into a recession in the history we've come out of it rapidly as well as it look like perhaps the US economy would recover quicker than many expected that silver obviously has a lot of industrial uses as well.

I think the key though is that, given that it's more volatile, less liquid.

I do like gold both for diversification for you among the precious metals and for those reasons, I guess the question I would ask though gator is are you over invested you to highly concentrated in the precious metals and is now a time given the run-up in silver and given that what you Artie said some of the storage issues, making sure it's secure.

Making sure you have enough place to keep it. The physical possession of it. Not to mention the markup on the sale. As you go through dealers and so forth is now the time, perhaps to liquidate some of that and move into more traditional investments that would be perhaps a bit more diversified and where you wouldn't have the same storage issues and perhaps less volatility over time.

So I know that's not quite what you're asking so I guess I'm agreeing with you on the move to gold, but then I would add the second question back to you about. Perhaps it being a time to diversify your holding stomach or thoughts will bind every chance I get done real well.

It just happened very very reluctant to go out and sell it and I'm just wondering is there a better way to invest in gold, but the both of those as a hedge against inflation and believe it or not.

Got kind of a proper mindset. I don't really know our economy to your church and I certainly get that. I guess the thing that I would look at is just no work taking on massive amounts of debt.

I get that, you know, I'm not sure, where you're at on the whole monetary system and fiscal policy but I would say we still despite our debt here in the United States.

We have a very strong consumer.

We have the biggest economy in the world that still very robust and thriving. There's not really from my vantage point, any systemic issues out there and so you're the steward and you need to make these decisions, I would make them prayerfully, but I just find at the end of the day it's better to have a well diversified portfolio and I think right now you're obviously taking a lot of volatility by continuing to add to your position.

Perhaps one opportunity is just a hold where you're at and then any new dollars either add them in gold, perhaps using an ETF exchange traded fund where you don't take physical possession or in a broad index just to begin to diversify slowly away from the precious men's work that you called me wish you the best as you work through them prayerfully.

Thank you so much for calling yesterday. Number 805 five 7000 Ruth Alicia McCall, how should we as Christians think about and asking what if we could invest our money in a way that aligns with what we believe that Eventide we believe it is possible to love God and love our neighbor in the very practice of investing we decide investments for performance and better world so you can invest for the future with a sense of wholeness and purpose. We call this investing that makes the world rejoice. More information is available@investeventide.com Christian healthcare ministries enables believers to meet their healthcare costs affordably, biblically and compassionately not insurance but a voluntary cost-sharing ministry based on the biblical sample of Christians sharing each other's needs and members are defined under the law for not having health Christian healthcare ministries like your health cost solution call 800-791-6225 or visit CH ministries.org hi my name is Aaron production assistant radio Moody radio versus the week is found in Proverbs 457 wisdom get insight. Do not forget do not turn away from the words of my mouth. Do not forsake her she will keep you love her. She will guard the beginning of wisdom, get wisdom in whatever you get. Get insight. Proverbs 4527 the Moody radio first of the week one more reason why the ministry of money radio.

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Other projects that Laura will draw energy from warm Gulf waters and become a category three hurricane before making landfall along the Gulf Coast late Wednesday or early Thursday with wins around 115 mph officials urged evacuating people to stay with relatives on hotel rooms to avoid spreading the virus that causes covert, 19 day two of the RNC First Lady Bellagio truck, so to give the Knights Marquis address from the Rose Garden of the White House resident drop expected make an appearance during prime time programming firefighters, aided by weather and reinforcements, hoping to continue their progress against California wildfires killed at least seven people in Ravitch counties in the San Francisco Bay area and wine country starts finishing mix that I'll drop 60 points. The NASDAQ ahead 86 and the S&P up a dozen. This is SR and use thing with us today moneywise live calls lined up Florida. Well, another one from Florida and another one in Florida so I can start in Florida, Ruth, thank you so much for holding and what's on your mind McCall and I really appreciate your program.

My concern a couple doctors told him he needs to settle down and tied down to keep working and intends to retire either February or June 2021 I am retired and mosquito retirement benefit in my tank after the doctor does that we visited our financial advisor and he advised us to move our investment from Scott mutual bond and I'm wondering if that was a lie I made any changes on site Yorty made any changes in your vestment portfolio other than what they advised they moved as they moved our funds from the stock mutual bond.

Okay, so they were okay well first I appreciate your call.

Sorry to hear about your husband, but it sounds like if he's willing to make some of the changes. The doctor recommended were to just trust that the Lord will allow his health to improve and you guys will be able to enjoy the fruit of your savings here and asked the Lord what he has in this next season for you know I think it's always, I would caution you against making a lot of changes where you're reacting out of emotion obviously coming out of the doctor's visit like that. There's all kinds of emotions going on, perhaps even some questions, maybe even a bit of fear.

And so that's not the time to be making a lot of changes although I'm glad to hear that you have counsel in the form of investment professionals, financial planners that can help weigh in on all this in terms of the investments that you have in the budget or lifestyle that you have told me about your retirement income when your husband retires. Are you planning to continue to work beyond that point were you to retire as well.

Sometime next year. I am already retired retirement benefit yeah okay had darted on social security benefits but was advised that perhaps I should start my benefit in January. At this upcoming year.

Okay, very good, and what will you all have in total retirement assets when he retires he had a 401(k) that you will be in over think it has something like 230,000, and our investments so far with the financial advisor are approximately $260,000 home is paid off, and it valued at about four at least 400,000 okay and have you done a budget to look at what your expenses will be in retirement. I'm glad to hear your home is paid off sets can keep your lifestyle as low as possible. But when you look at what it's going to take the fund all of your expenses not only just the monthly bills but the discretionary expenses in the nonrecurring have you really done that deep dive into the budget and have you compared that to what you expect to receive in Social Security.

We have I spent right now what I can.

Because like we have to carve. It was explained to me okay Carla go away and I understand that that in my mind that that extent somebody else may consider it a debt I get confused in that area, but basically are expensive now are about a little less than $5000 a month okay what you all expect to receive when you start claiming Social Security combined. I think that's going to be close to 3000 okay three does not seal the shortfall of about 2000 month and obviously if you paid off the car notes that's gonna reduce the total assets that you have unless you can somehow sink up the paying off of those car notes with your retirement, but it's either going to go one where the other.

It's either going to be an expense that you need to factor in or it's can reduce the asset you have available to be income-producing because you have to withdraw something to pay off the car notes. In either case, it's probably a wash. If we look at that roughly half $1 million that you will have between your husband's 401(k) what you already got invested and we were to typically look at a rent of 4% rate of return on that we have a mix of stocks and bonds. The stocks provide a little bit of extra return and in the event the markets down we let that ride. We don't pull from that.

But in the average year over a 10 year. The stocks are going to add a bit more return at least historically speaking, than the bonds well and the bonds provide a more stable, but a lower rate of return you put all that together and we generally use 4% is kind of the target there. So a half-million dollars were talking about 20,000 a year that's not quite going to get it done because before taxes. That's about $1633 so I think the key here is being able to match the budget with the resources that are available and it sounds like unless you're willing to start to eat into that half-million dollars by pulling out a bit more than your returning on an annual basis which you would be by about $5000 a year, according to what you just told me. Then we've got a either downsize perhaps sell the home by something a little less expensive, or find a way with part-time work or something else to create a little bit more income but I think it's a good move, given how close you are to his retirement for you not to be fully invested in stocks right now.

I think you need to have a mix of stocks and bonds, but you need to be quickly moving toward determining what is it gonna look like for you to dial back your spending to match the income that's available through Social Security and an income stream off of your investments and ideally you wouldn't be pulling more out than 4% a year, with the expectation that you wouldn't be eating into the principal and that would be available for the future to both fund your retirement income and if you needed something like long-term care in a major health expense you would have the principal that you could pull out of.

From that point to some extent so yeah okay I appreciate all that. I welcome the question of part-time job. I'm totally agreeable with that, but it will that put us in a net, what would I do try taxes well you pay tax on that, but that's okay as long as your reach full retirement age will have any impact on your Social Security benefits.

So I think the key is, again, let's go back to the budget of 5000 is the number that we gotta find 5000 and income and all I'm saying is we got a look at that half-million and I use that 4% rate of return which is going to throw off about 20,000 a year and so however much your short, you either need to dial back your spending or you need to find a way to increase your income through part-time work you will have some taxes but that's can help you get there.

Otherwise we might need to make a hard decision like selling the home or finding other ways to cut back but if you need a second opinion. You could not connect with a certified kingdom advisor there in Florida, but we appreciate your call. So much Ruth � thanks for listening. Appreciate that. Thank you very much. We still have Alisha and Nicole and Fay in the line were going to try to get you ladies just as quickly as we can.

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Your mom obviously caring for your kids.

Sounds like you've done a wonderful job managing God's money, you're out of debt you got savings in place.

You got some investment your funding your retirement account and that's all really good and even made the difficult decision and yet I bet in some ways it's been a blessing to move in with your parents so you can save some money and help to navigate the pandemic that where we find ourselves, and so yeah I think as you move forward.

Obviously, this needs to be a matter of prayer. There's not a necessarily a right or wrong decision.

If you don't mind me asking what age are your kids okay well okay great, excellent, and so you you are busy what you think the opportunity is this you know as you look at your priorities in light of your values. I think you having that emergency fund is key. 3 to 6 months expenses being out of debt is key you.

You have both of those funding your retirement account is key.

Thinking about major expenses that come up in the near to midterm which is college for you that's already paid for and funded. That's key, so now the home is kind of this next goal that's out there for you and I think you know the way to gauge the timing on that is to say, when am I ready both in terms of the down payment because we would like for you to have 20% as a down payment so for every hundred thousand you want to spend, you need 20,000 in savings to put toward that and the reason is that's can avoid private mortgage insurance which is an expense that does nothing for you. It's only for the benefit of the lender and it's good to make sure you have some equity in the home. So if we were to hit the housing market downturn, you wouldn't find yourself ever in a position where your upside down, but I realize that's a significant amount of money you want to buy a couple hundred thousand dollar home, you can eat $40,000 and that's not easy to come by so I think it's really praying through how are my kids doing in this environment.

Is this the place for us to be because you can save the money more quickly and so maybe you say a minute stay here for another year and I have a plan to keep my expenses as low as possible so I can build up that 20 or 30 or 40,000 whatever it is much quicker all or do I really need to have a place of my own and I feel like it's can be better for me and for the kids and maybe I'm still close to my parents, but we have our own territory and then because of that it might take a little bit longer to say, but I wouldn't feel bad about renting because the key is that you continue on this path where you have a strong financial foundation under which the under you, which you absolutely do right now because you've done such a great job even if it doesn't mean you have that home that you are working on owning that you own. But you're paying it off through the mortgage even if you wait on that for some period of time.

So that's really a balancing act, but I think that's probably the next priority that you want to begin working toward in the decision for you at this point is we try to fast-track that stay right where you are or do you go ahead and move out in the appropriate timing and rent and save a little bit slower but have a place of your own to some extent. Okay God bless you Alisha and congratulations on the great job you're doing.

You certainly are Alisha God bless you thanks that stay in Florida. This time it's Lakeland and Nicole what you question for Rob and inquire about 401(k) currently flow like a IRA like my whole life.

In the latter day. I have to credit card about $500 payment alright so what is your your main question at this point. Nicole you wrestling with looking at couple account trying to educate myself.

I only write my first sure how much do you know what percent of your income is going into your 401(k) every month. Okay well I think the ideal situation for you in terms of long-term investments would be to get that up to 10 to 15%. If you can, over time with the other priorities and in mind me not ready to be completely out of credit card debt first love for you have 3 to 6 months expenses in that emergency savings and a liquid savings account could be an online savings link to your checking pain a little interest, but it still in a liquid savings account so you can get to it. If you need it. I'm glad to hear you have insurance, make sure you have enough I would say 10 to 12 times your income at a minimum in the way to make sure you have enough is by ensuring that you have term insurance which is just buying the pure insurance not linking it with any kind of savings account. Your whole life yell as you move forward, though those are really kind of the priorities alongside any giving that you're doing on a systematic basis with additional money, I'd be just continuing to put that on the tax-deferred basis into the 401(k) so that that money is growing for you without the drag of the taxes and with that I'd be invested almost exclusively in stocks with that 39 years old if you wanted to use a target date fund.

You could use a 2045 or 2050 target date fund, which is you know when you'll be 65 would be 2046, so it'll be really on the more aggressive side with a high concentration of stocks very little in bonds because you've got so much time we were talking 25 or 30 years here before you would be thinking about retiring and so you got a lot of time for this money to be working toward for you. Let me do this because it sounds like you want to continue to learn and grow in this area want to send you a copy of Austin Pryor's book the sound mind and handbooks.

If you'll stand alone will get that out to you. I think that'll be a real blessing as you continue to educate yourself in God's way of investing in a call if you don't mind me mentioning it.

I try to dump that $500 a month credit card payment.

I think you said 500 a month mean that's that's interest that's continuing to grow in the cruets compound interest and we want you to get used to paying $500 a month.

We'd like you get that down to zero. Just as quickly as you can. And with that will let you go and say thank you. We appreciate that up to Syracuse, New York hello Tom, we have just a couple of minutes to squeeze it. My call home improvement projects that we want to do, mainly outdoors driveway patio.

Some things like that.

Up to this point. Our house is our house or we been able to pay for the interior upgrades you know with cash flow from from income but right now were not able to afford a driveway say that going to be $15,000.

We can however afford, say, probably three maybe $400 a month payment. If we were to get along. So the question is how do we what what would be your advice to the best way to pay for some of these larger expenses.

Yeah well it's always you factored into the budget and you're making smart moves on the things that you need either because they're going to be of value to you as you just improve the home that you're living in, or that you feel like that. There also going to improve the value of the home itself and you've gone back to that budget.

You made sure that you can actually absorb that payment and you have a plan to pay it office as quickly as you can. There's nothing wrong with borrowing to improve your home if you've got the equity I would prefer a home equity loan Tom over home equity line of credit, primarily because you can secure a fixed low interest rate with a fixed monthly payment of fixed repayment schedule as opposed to a line of credit now which is good. Have a variable rate so they can change with the whims of the market and often times doesn't have to be this way, but often times while the loan is open during what's called the draw. You're just paying interest only, you're not actually making progress and paying it back and that at some point it'll close and then at that point it's usually the repayment period will be somewhere between 10 and 20 years and obviously the benefit of the home equity loan is you only pay the interest on what you take out so you can take it as you need it, but typically with a project like this you would know what you need upfront you could get the amount that you need as little as possible.

Go ahead and get the proceeds paid out to you in full in that way you'd have them available as you need to pay the contractor so your rates are obviously very low right now.

Not anywhere near as low as the first mortgage rates but you're still gonna find low rates. I'd shop around because you should be able to find alone that doesn't require a lot of fees are upfront expenses and bank rate.com would be a place to go to check that out, you have to let you go right of time but were glad that after talking to a lot of Florida callers today down there worth 109 a talking to you if Syracuse is off of that and we appreciate your call today. God bless you think so much that Rob, thanks very much will come back tomorrow. Do it again okay sounds good and you can find more about who we are what we do and some free resources at moneywise alive hut Oregon moneywise live.org