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Lessons Learned from COVID

MoneyWise / Rob West and Steve Moore
The Truth Network Radio
September 11, 2020 8:03 am

Lessons Learned from COVID

MoneyWise / Rob West and Steve Moore

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September 11, 2020 8:03 am

The coronavirus pandemic has been a very dark cloud, seemingly without a silver lining.  But experts say that one upside is the change in the way people are handling their money. On the next MoneyWise Live, hosts Rob West and Steve Moore explain the ways many of us are managing our finances better than we were before the crisis. Some financial lessons learned from COVID on the next MoneyWise Live at 4pm Eastern/3pm Central on Moody Radio.

Rob West and Steve Moore
Rob West and Steve Moore
The Todd Starnes Show
Todd Starnes
Rob West and Steve Moore
The Todd Starnes Show
Todd Starnes
Rob West and Steve Moore

They say every dark cloud has a silver lining in the coronavirus pandemic has been a very dark cloud. The experts one upside the way people are managing their money history.

The covert crisis and resulting economic turmoil are changing the way many people manage their finances for the better but will it last first up-to-date kingdom advisors Pres. Rob West explains the changes to your calls on anything at 800-525-7000 800-525-7000 times more lessons learned from COBIT. Take off your mask next moneywise line and we just mean for callers right Rob. Everyone else could be mascot but if you're if your caller today would help us understand you better if you remove the mask as long as your socially distanced. Yes, you may bring your mess during the phone call 30 okay looking at the big economic pictures. So far, and who knows where this is going to go over what's the one thing about the pandemic that stands out to you. Well Steve, the word chaos comes to mind. I've never before have we seen such a strong economy plunges so dramatically into recession, and then only to climb back out of recession, at least technically, just about as fast now. That's not to say the parts of the economy and specifically areas of the country aren't still hurting. They are, and we have a long way to go before the economy is back to where it was at the beginning of the year, millions of people, of course, are still out of work and that is no small thing. It may not be you but everybody knows somebody who's taken a financial hit from the pandemic and not happen. Steve, when our financial security is threatened, it can certainly make people take a second look at how their managing money. Yeah, alright, so what do we know about those changes. Well, we don't have a lot of hard data yet, but it's safe to say that three areas of our financial life have been deeply affected by the ongoing economic turmoil of the first is something we talk about all the time.

It's the inescapable need for money in the bank to cover financial setbacks.

In other words, your emergency fund financial advisors often have a hard time convincing clients who haven't experienced a real financial emergency that they need to keep cash readily available, but now as they see family, friends and neighbors, perhaps even in their own situation losing jobs or having their hours cut. Well it's easier to make the case that we saw this right from the start of the economic shutdowns. According to the Bureau of economic analysis of the personal savings rate hit a historic 33% in April. Obviously, it's difficult to save if you've lost your job, but for those who could the lesson was clear. Stop spending and get some cash in the bank.

It also didn't hurt the people weren't going anywhere so that probably curb their spending as well.

And of course we always recommend that you have 3 to 6 months living expenses in your emergency fund.

And now you know why it's no longer academic. There's always a real possibility out of left field. You may need. And I think we can probably expect that a lot of folks who lost jobs and hadn't saved won't make that mistake again. Let's hope. Anyway, what's our next lesson learned so far from the pandemic. Yeah, well, just as we learned that it's wise to put money into saving Steve. It's also a good idea to put something in your pantry of the pandemic is caused major disruptions in the supply chain of basic commodities of the images of empty store shelves are still fresh in our minds. Perhaps it's even still a reality where you live and that's caused a lot of panic.

I think we can expect that many of us will start keeping a reserve of storable items, especially disinfectant products that we may be through the worst of COBIT 19, Lord willing. But that doesn't mean COBIT 20 isn't right around the corner. A case in point, the sale of bleach products has soared throughout the pandemic Clorox sales. As you might imagine were up by 32% in the first quarter of the year. Okay so were building your emergency savings. Learning to keep a reserve up necessities.

What else.

Well, you know, as we continue to look at this. Not surprisingly, Steve of financial advisors are reporting a renewed interest in budgeting. What that means is worth taking a much closer look at spending that we did before the pandemic it, we all know that it's difficult to change spending habits that have become ingrained over the years, but the coronavirus or cause many lifestyle changes stuck at home for months. Millions of Americans and had to curtail or eliminate vacations, eating out all sorts of entertainment activities so this is a time to go back and look at your budget and it's a great time for me to let you know that we have a brand-new tool out. It's the moneywise app and it's that last digital envelope system I've ever seen and that's why our team created it. Go check it out today at your app store.

Whether it's Google player Apple to search for moneywise biblical. Thanks for your call 805 five 7000.

He's Rob West, listening best. Many people are experiencing financial challenges such as credit card debt downsizing that in jobs, savings, more than half of all divorces are the result of financial pressures at home, but there's hope in your money counts biblical financial expert Howard shows that the Bible is a veritable managing your finances will discover the profound relationship with God, your money counts as available when you click the start button moneywise live if you're investing for retirement or any other goal you may be wondering if it's possible to enjoy both profit and peace of mind, no matter what's happening in the market. Sound mind and has a short video webinar on that topic. Sound mind,

SMI has helped tens of thousands of Christians learn to be wise and faithful stewards in the area of investing profit and peace of mind matter what's happening in the market.

Sound mind and this is the whole I've dreamed of playing hole 17 at the TPC Sawgrass. No big deal right solely hundred 21 yards part three no problem. But then again this is a golf green that is entirely surrounded by a fire water. No fairly just a golf green island is a problem. Thanks buddy hazards to endure in your life today. Dear God, is it unethical for me just to you know throw the ball up on the green.

Yes yeah I thought so. See hazards and opportunities to improve and become better prepared for future obstacles that will come your way. If they are from God. Remember that he is put in there out of love for you as his child. Okay taking what I've learned. Going alright.

I just will not be dismayed.

Something to think about your friend raining.

And if that is robbing you of Freedom and peace of mind. Christian credit counselors can help where nationwide nonprofit counseling organization has helped over 3000 individuals in the last 27 years get out of credit card debt percent faster while honoring that that info to learn how Christian credit counselors can help you visit Christian credit Christian credit or call 800-557-1985 questions about all I don't know maybe insurance giving housing credit saving fixing your air conditioning give us a call today. Her lines are open and available land we love to chat about anything.

Anything financial that's of concern to you.

I here's the number 800-525-7000 that we have lots of open lines today, they remain open. Not sure why. I know we paid the phone bill so let's put those lines to use. Give us a call if we can help you 800-525-7000 Rob you want to begin, let's do it seemed all right. Let's go to Humboldt North branch, Minnesota Alan, thanks for your call today sir, what's on your mind will some time, hold all insurance because it out. Now you will contrast to the likelihood of claims but yet at times is why you are not completely settled about it bouncing off $425,000 property could be replaced for probably about 300 but the likelihood of the equation. In contrast to the $1200 all, so I believe in your court to take the counterpoint here and say that there is still an enormous risk not only back up first and just say kudos to you on managing God's money. Well, it sounds like you've really capture lifestyle lean and mean you've been diligent as a saver you paid off all of your debt including your rental home.

It sounds like you're in a pretty strong financial position with God's money, that's great.

That gives you flexibility and peace of mind allows you to be generous as the Lord leads, and that's all really good but I think part of our role as stewardess to also recognize where we have the potential for risk and a significant one. And I would certainly place your home being your perhaps your largest asset or close to it right there in terms of where you need to be looking for offsetting that risk. You know, what would you how would you replay or repair, or more importantly replace your home if you suffered damage due to a storm or had a complete loss due to a fire.

What if somebody was injured on your property and takes you to court. How would you pay for that judgment. I think you see where I'm going with this. You know, nearly all retirement plans including pensions and Social Security are protected from creditors in the form of judgments. Your home is protected.

If you own it jointly with your wife. However, your personal property, and automobiles have no protection and so you'd you gotta consider the cost of replacing those you've also got a consider the cost of a major loss and so you know if your goal is to become self insured. You can do that to a point, but I don't think homeowners insurance is one of those when you compare the cost against a catastrophic loss. You see, very quickly, in my view, at least, that homeowners insurance is actually a very wise decision but not push back on that island what your thoughts will look at our basically run type of claims have been common in what we live here in Minnesota. The only thing I would say more common would be awesome siding and windows when I'm out of pocket. That's not that much like Candace a lot is solely. It doesn't like the why of money while betting $1200 you have a claim with the insurance company betting the opposite. I guess you'd you just you live long enough and you see some of these you go through it. I've lived just a few houses down from a home that was completely consumed by fire because of a lightning strike one of my coworkers. Here it moneywise had attached garage and almost the rest of the house go up in flames because some rags with oil stain were left out in unvented overnight and they combusted me just any number of things can happen, albeit remote. I'll give you that.

I just think part of our stewardship responsibility is to say when we're caring for an asset like this. Having insurance on it gives us that piece of mind which, in my view, is worth that $12-$1500 a year. Just knowing that in the event something. Yes, unforeseen, and yet possible happens you don't have a total loss.

And now you're wondering how I can rebuild reconstruct all of this. So I would say ultimately you're the steward Alan. You gotta pray through it and I don't say that tongue-in-cheek, I mean that I pray through it and let the Lord lead you as to what your conviction is in terms of how you best remain faithful as a steward of God's money.

It's just in my view. If you have the ability to have it insured even though it's remote I would feel better you going that direction just given what I know was possible even though it's not likely, but I certainly appreciate your perspective were grateful for your call today and hopefully given you some things to think about. No matter where you come down Ellen will glad you called today. Thank you. It's always fun when people come up with an alternative or a little bit of a push back as long as everyone remains play a polite but if you feel that you can put Rob on the hot seat if you can force him to rethink his position and admit that he's been wrong all along about. I don't know if you've been wrong about much of anything. I'm sure of the runabout flooding. The thing I appreciate you asking people to find more of, well, it's just to help you grocer, I can always accept the humility you know what makes a diamond Roberts pressure body rest pressure on it.

Okay, live radio is not enough. Let's let's throw a little bit more in the mix. This is my last day. Maybe talk after the ship I was afraid of Grayslake, Illinois hey Ken, what's on your mind's inherited more money money. I'm just wondering I know how and will be about hundred 80 to talk about okay but the one to $50,000 and 52 and 1K have liked almost 500,000 on the 20th I could not pay my warlock at 3.1 Q for I could do it that yeah well I can in my mind. This is somewhat of a no-brainer. Although maybe I shouldn't say that because I think you could come down on either side of this, and I wouldn't argue that you're wrong when where the other you know, given that you're so close to retirement. Given that you're on track is what I'm hearing with your retirement savings and now you've come into this inheritance of somewhere nearly $200,000 so you could pay off this loan in full and still have been a roughly hundred and 3200 50,000 remaining.

That's the part I think that just makes so much sense because I want you to be debt-free including your home if possible. By the time you retire. Anyway, that's can keep your lifestyle as low as possible and just reduce the burden of what you need to fund your lifestyle. Not to mention the peace of mind that comes from knowing that you have no encumbrances that you own your home free and clear the flexibility that comes with that said, not to mention you get a lot better sleep. I just find this so here's what I would do is just pray through it and asked the Lord what he would have you to do.

Certainly if you look at it on paper. You could make the case that now with the 3% interest rate very low rate. You have potentially the ability to deduct even a portion of that if you itemize versus what you could make let's say in a diversified portfolio.

You know you could make the case that it's wise to continue.

I just wouldn't come down on that side, given how conservative your portfolio is probably going to be as you near an inter-retirement given out some of the challenges we've had in the incredible run-up in the stock market over the last 10 or 11 years but what we've seen this year on the rebound from the pandemic.

I just think you're never going to regret paying off your home and being free and clear. I do it and not look back, but at the end of the day if you and your wife are on the same page. I think you could go either direction, and certainly make a case for Ken is at the does that work for you. Does that make sense making all end up property and I'm really thinking about that. Take care of it cannot be that it let me make sure I understand what you're talking about here so you're saying you keep your primary residence, which, let's say it's paid off. At that point you turn that income and income generating investment property and then where would you live, what would you do that by getting got Phoenix wide property that the property and is going to be managed by don't down bite people that you like what I got 271, 371 eight implement income all the time. All yeah yeah well when comes down to a budgeting decision. You know how does that fit into your spending plan given the income sources you have retirement income, Social Security and just document. If you've never been a landlord before what you're getting into their in terms of the time commitment the financial reserves. You need to have to maintain the upkeep and what if you go with her without a renter for a period of time just thinking pray through all that and then go back to the budget. Make sure the numbers 10 devilish brother very much for your call today. This is 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 Deaton will help you discover God's approach to growing your finances and strengthening your relationship with your mate and cultivating godly joy, money, and marriage God's way is available and moneywise to which the entire team down into one enrollment is perhaps this would be the maybe right for everyone who believes is the great transit means according that may come the long when first reached its goal to give you an example with a perfect word.if you're like me, that troubles me when you want to break me you think you wearing percent. We will not be as one thinks he will be able to complete our translation site in the Greek means to bring everything feeling going to put word experience more for 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 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 and moneywise heavy with us today are so thankful that you chosen this day. Anyway, again, here's her phone number if you'd like to speak with Rob West 800-525-7000 or you could always visit us online. Here's our website it's moneywise you find a lot of great information there is some help for things like budget templates and some typical principles that you can print out and put up there in the fridge, and a lot of other great information. It's also an easy way if you'd like to make a donation right now, what exactly right. You know what we do each day here on the air but also off the air through our brand-new moneywise after our website the resources the magazine the coaching services. All that we do is brought to you only because of the faithful donations of our partners and we rely on that in order to do the ministry that God has for us if you might consider prayerfully being a part of that we would certainly be grateful whatever you can do. Whether it's $10 $1000 or anything in between. We be grateful for any consideration you give in supporting the work of moneywise is Steve said just go to moneywise in the upper right-hand corner, just click the donate button. It's quick, easy and secure and would be grateful. And remember, when you give it helps us working other people's lives so that they too can experience true biblical financial freedom go back to Airlines monster Indiana Lawrence your 25. My notes say and you're getting engaged next week is that is that the deal we can hear you now does she know that she's getting engaged next week. About a week ago in our culture, we do a engagement will be super.

How can we help you yeah I'm a moneywise and I love the guy looking for my cup, 530 grand Dave.and were planning on getting married in April and I'm starting to be an insurance agent making about five grand a month so I'm wondering should I make a commitment and buying a condo right away and should I use the money that I have for my treating me well or should I try to use the money that I'm making from my job and kinda let my keep building it would hurt me to rent for a little bit and then when I'm fully ready to make that full commitment to pay 20% down payment yeah yeah I like the idea of delaying that Lawrence for a couple reasons. Number one, you guys are just getting started with an incredible exciting time in your life is your joining together as husband and wife under the leadership of the Lord, you know, just to think about what God has for you moving forward and I think you given some of the newness of this. I think starting out keeping without having that added pressure of a major debt commitment, especially if you're not quite ready financially.

Even though I know it's hard, especially for some people to say and we just don't want to rent. We feel like were throwing money away, and yet not getting ahead of yourself is something I think you'll really come to value so I would go ahead and then begin renting figure out where you will want to live you know get through some of these sub first months, and even a couple years of marriage while you get your financial house in order get used to living on a spending plan together as husband and wife begin to give in to save together and funding your retirement, at least up to the matching portion.

Ultimately, with the goal of 10 to 15% of your income building that emergency fund of 3 to 6 months expenses and then saving that full 20% for a down payment. I don't think you'll ever regret that decision, especially if we were to see a dip in the housing market, so that's can be my best advice to send you a book called money and marriage God's ways are not a great idea right thanks very much and Lawrence again. God bless you and your intended hope you have a wonderful life together with God right there at the center. Thanks for listening moneywise live will be right 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 even tightly designed 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 available best invest Thank you from the bottom of my heart I could've had the procedure I needed without CHF's help sharing the bills that letter from a member displays Christian healthcare ministries purpose to glorify God and serve his people. CHF is the original noninsurance voluntary health filesharing ministry, enabling its members to share the cost of each other's medical bills, call 800-791-6225 or visit CH ministries more time my name is Ryan communications major at the Moody Bible Institute Moody radio verse of the is found in second Chronicles 714 if my people who are called by my name will humble themselves and pray and seek my face and turn from their wicked ways, then I will hear from heaven and I will forgive their sin and heal them that a second Chronicles 714, the Moody radio verse of the week you may know that you are loved by family, friends, by God, but do you really Dr. Gary Chapman to whites known love five truths about God and your lovely how God uses it to communicate with how God is intimately involved purchasing a copy. Do you know if you have enough money of 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 son John Scott mother's 19th anniversary of the 9/11 attacks on America resident wrote about in the speech at the Shanksville, Pennsylvania side were hijacked 93 crashed in the field that America will always fight back in New York. Both VP Vincent former VP Joe Biden attending a commemoration of the Ground Zero letter, Mr. Bentz read Bible passages that another ceremony before stopping by a fire station to think first responders. There are fighters aided by helicopters dropping a fire retardant and water there battling two large wildfires that threatened to merge near the most populated part of Oregon including the suburbs of Portland.

At this point more than 10% of the state's population is had to flee the area on Wall Street that outgained 131 points today. This is SRN you moneywise live games for my Mrs. James Laskin do not see because you ask with wrong motives, so that you may spend it on your pleasures.

Chattanooga, Tennessee, Arthur, is there a choo-choo, really a choo-choo in Chattanooga's been here while know for one year I will define my way up.

Can you and I have a cup coffee in the choo-choo or something there. We can. There are around the country that I promised you a cup of coffee. Not many cities visit where somebody wouldn't be waiting to buy you a cup of coffee. I got a court heard all great great mama want to make a quick, for one year older and not my wife to be 65 this year and year ago we propped out your own property and so it was a big two-story job and so we decided to start at one first part of my now difficult going put on the market. Okay so the house so lickety-split God and have time enough to find a person wonder that there are so and so we lived in an apartment lease property to two bedroom two bath mother out so I got hair got quite a bit of my stuff in storage. So my court to make sure you know I don't mind not cutting things like that. But what you think. I would love to have been looking at some property, if not the situation at all, then I'll let you have an what you think. It's them to one, get back in their home.

Well, couple questions for you and then I love the way and I thoroughly appreciate the backgrounds. What were your proceeds coming out of that other property will be able to put in the bank basically right now financially I'm in good shape like I have to take out a mortgage note for whatever you're thinking about right. That's what I'm plan out how to take out tomorrow it will be great.

If not paid the one I'm looking at straight out, but I never, like put in a different situation okay and how you feel about that and is important.

How does your wife feel about my why see where it hurts the trade. That story she will put inside of space, but me and my you know and my mom are probably not. This is where you know the lease on this top. It will probably put into something that you know that even if just beyond where to go for she had always cared about what I will be rightly united to be wasted money, give me hell yes sir. Well listen I don't have a problem with you taking out a small mortgage year, I'd prefer you to keep it on the low end of the repayment term so I'd love to see you get a 10 year mortgage or 15 year 20 at the most it rather you not go out 30 years. Hopefully it's a small enough mortgage, but the key is gonna fit well within the budget so you gotta spend some time looking at your budget. What income sources do you have that you can count on.

Hopefully Social Security plus whatever retirement pension or income off of retirement investments would be such that you would be able to maintain those accounts without depleting them over time and that that new small mortgage would fit into that equation and if it does then I think that's great.

I assume going with plenty of equity. As you said, the Lord calls you home first, which for most of us men that just is the case for statistically speaking, she has the ability either to continue on their or perhaps to downsize. Maybe something with a little less upkeep than she should be able to sell that, given that you all go in with quite a bit of equity so probably that I think you all would be delighted to have something else to put your stuff in and call home. I think you really just need to pray through where and how big and what lifestyle do you want in this season in terms of upkeep and maintenance and make sure you pick something that fits with that but in terms of taking on a small mortgage on will have an issue with that as long as it fits in the spending plan Arthur were glad that you called my friend and we trust Jesus won't to give you a call anytime soon and that you and your wife will come to an agreement and that's critical that you and your wife both agree before you decide to do anything like this and will pray that that's a blessing for you both.

Thanks so much, 800-525-7000. Let's sneak in Willie in Tampa Florida. Willie what's on your mind will all well about background and logical thinking that are currently well all our how to buy a product that is universal. I think people need to think for all our death benefit that color. Yes, well, I'm a fan of long-term care insurance. Willie I think it's something just given the statistics about the number of Americans the high percentage of Americans that will need some form of long-term care on average between 18 months and three years either in home care, assisted living, or full nursing care, especially with what you're talking about and in the health history that you have in your family, which by the way you want to shop this around because certain companies will treat that more adversely than others and so you want to give one that gives you the most favorable pricing I like that because if something is going to erode your assets in this season of life. It's probably going to be long-term care in terms of the quickest and you can absolutely combine it with another insurance product that has a death benefit you mentioned universal life and you could do with whole life insurance is even I think one care that'll allow you to do it on a term policy.

I think the key for you though.

Willie is to make sure first of all that you get a reputable knowledgeable insurance agent who specializes in long-term care to talk you through all the options talk you through which companies are committed to this space and have really a really strong presence in the long-term care insurance space and with the most competitive pricing. You're also going to want to make sure that it fits well within the budget because is not to do you any good if you can pay for it for the next couple years and then you end up dropping it because you can't afford it. So as long as you work through all of that with a knowledgeable agent.

I'm a big fan and I think it's something that if you can afford it, ask a lot of sense.

Especially for those with net worth assets if you will, between 300,000 in about 3 million. That's really kind of the sweet spot in terms of those who are looking for it.

Last thing I'll say is your age at 63 is actually a great time to be looking at long-term care insurance so I go to moneywise Click on find a CK and look for an insurance agent for a financial planner who can refer you to an insurance agent who specializes in long-term care really got bless you, thank you so much for coming in today when we come back.

Monica wants to know about giving a house Teresa Riggs on hold as well stick around 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 hi I'm very glad I'm here to help you understand how urgent it is to share your faith every opportunity to the eyes of a layman, if you're wondering why we have so many godless politicians date politicians are mirror image of the people who elect them, and those of us are letting them are mostly godless and that's because most Christians don't vote. Living in the freest country through the got Bertha spread the gospel and cousins are likely to be turned into a godless country by refusing to vote for Christian voting is more than a right. It's an obligation, and God will hold us accountable for protecting the country that provides most of the resources and manpower to evangelize the world.

That's why Satan is waging it all out attack on America doing everything he can to destroy all respect for our country are godly founders who put their lives on the line to make his godless.

There is nothing more exciting than knowing God is using you to move people closer to join is not America be question that we all have in this whole coronavirus thingies. How will it impact me how many done it from Christianity obviously he's going to cause some serious suffering already.

Many have died.

Many of the stage.

Obsolete businesses and let's be honest there is more to come, which can strike fear even in the hearts of those who believe in Jesus, remember those 12 disciples in a small boat on the Sea of Galilee. The storm heat in the middle of the alley in fear for their lives and Jesus came walking out on the water, scaring them even more pain for crying out loud. If it's you can mount me to come out onto the water. Jesus is me, in the middle of the storm.

Peter stepped out of the bug while the 11 Steinback cowering in fear.

So in the middle of the storm what you plan stick that in fact will hang back in fear, money and life run on the same track. Unfortunately, sometimes it seems like your money is heading in a different direction from your goal, 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 moneywise you moneywise Ray in Lakeland were coming your way. Also, Mandy and Mrs. Missouri. Please stay with us but now it's Monica in Arcadia, Indiana, and what's your situation Monica. You all my home to my towel back at the road actually wants to become a house in Houston and way of association often think I talked to supply the original price of the house so Monica is your intent to gift this property to him this property that is your assets.

You want to gift it to him right okay yeah you know I would always, I'm not an attorney, I would always run this by an attorney who can weigh in on this from an estate planning perspective and as you make this transfer right have a real estate attorney actually look over the process of making sure that it's it's transferred effectively and recorded properly, but essentially you would be passing on the capital gains to your son. He wouldn't be able to avoid it.

When he sells Alessi uses something called the 1031 exchange where he were to roll it into a like title property, assuming it's an investment property benefits.

His primary residence at that point he potentially could take a few lives thereto out of five years. The homestead of the exemption for domicile. A primary residence for himself 250,000 and as a married couple half $1 million in gains, but it would be based on that original purchase price and he would have to meet the requirement that he lives thereto out of five years.

You would also be dipping into the unified federal gift and estate tax exemption, which for 2020 is 11 1/2 million to help. So you got quite a bit of room.

There are so most people are concerned about it, but you just have to know anything over them. Over 15,000 for the annual gift exclusion and by the way, that's per recipients of he's married and you're married, you couldn't essentially gift 60,000 of the home's value without going against the unified lifetime exemption but once you did go beyond 60,000.

Assuming you're both married, then it would start to eat eat eat away at that the lifetime exemption but there's no way to have a step up in basis. If your gifting it so the only thing there I think would be an option is if he lives in thereto out of five years as his primary residence prior to selling it. But again, I would run all this by not only a real estate attorney to help you make sure that you transfer properly, but in the estate planning attorney you could find both of those and you go to our website moneywise just click find a CK and I hope that helps you already.

Bye-bye thanks so much what she wants to do. Does that send me the summary she speaks with the right people on this to make sure that all the details. Maybe even as they relate to restate something she has the right person. There is this sound like a very convoluted kind of thing might you be able to do.

I know I think she's sad because she's planning to give this property to her son anyway she wants to go ahead and do that now. I don't see any problem with that. That's her intention to do. Thanks, Lakeland, Florida hey Greg, thanks for your patience, my friend. What's on your mind years old little over $15,000 in and I have over $80,000 to load on my own not home is not guided mordant hundred and 20,000.

My thinking is taking money out to pay off the debt that I have and my other thought was pulling out my money market have about 110 in the money market and taken about half of that thinking 40,000 and paying off have to mortgage hello and then refinance okay. The 15,010 is a credit card, card and quality charge okay and you said you have 110,000, and money market is that in a taxable account you withdraw, but is it a retirement account or is it just okay and are you still working yes I okay so talk to me about, where you are in your retirement savings. As you look at perhaps between now and retirement and you look at all the retirement assets you've accumulated to this point and what you're continuing to put away on a monthly basis between now and your expected retirement. You feel like you're on track with having the asset you need to generate the income supplementing Social Security to fund your lifestyle at this point are to tell my lifestyle here right now have been for many years but don't make a whole lot of money out of the year I make so it's not high and are saving savings. I am back in 1500 and savings right now. Regular savings but other than that pretty much it. Just recently past year and 1/2 I've had to change jobs job but was almost 30 years. Had to change jobs and on the job now for over a year and 1/2, 6%, a or 1K is not totally bested yet it is the hundred and 10,000.

In addition to other retirement assets that you have that are not vested or is that the total of your retirement – the total amount okay yeah just a little a little leery of you pulling out 50,000 of essentially 50% of your retirement pay off credit card debt and reduce your home mortgage what I'd I'd rather you do is come to solve the issue that got you here in the first place which perhaps is is living beyond the income that you have because we really need this money to continue to grow but at the same time. We've obviously got to get to a place where your debt free and that you know taking the pressure off by raiding that retirement account which is gonna be very expensive money because it's all in be taxable.

And if you're under 59 it's gonna have a penalty where that although the carriers acted wave that this year but even then, without the penalty still all taxable so you take a pretty big haircut there and then if you haven't solved the problem that got you there in the first place. My fear is that this debt would be back a year from now, except now we got half the retirement account.

We used to have. So if you if a refinance is an order meaning you can save at least a point and I can extend the term and you plan to stay in this home for at least 5 to 7 years, then I'd say go ahead and refinance perhaps pulling out only enough just to pay off the credit cards, not the revolving accounts but I wouldn't do that unless you been able to demonstrate for at least three months, preferably six that you can live on a budget and so that's where I'd probably look first to credit counseling where you can get the interest rates down, get on one fixed monthly payment get those credit cards paid off that way without pulling out money from your retirement account. This can become taxable so I slow down.get a budget and really focus on getting a budget that includes debt reduction on credit counseling in reference to Christian credit can help you with that and also make sure you have enough margin that your funding an emergency fund because I want you to get that up to three months expenses and then you know I would continue to fund that retirement account at 6% and ultimately once a credit card that's gone like you get up that up to 10 to 15% of your pay, but I wouldn't be pulling out of the retirement account to pay off the revolving in credit card debt or reduce the mortgage at this point.

Thank you, Greg Phillips, Missouri Mandy, we have a tiny bit of time. Let's do this at light speed. Okay, what's the question all ready to come in and I don't know if we should pay off our home or if we said darkly, suggesting that an 45 and 42 combined monthly income of about 500.

We start we don't live over means all men want to retire at 60. Now we said – that all because he just started a retirement account about a year ago was the house worth Mandy is worth about 330 Schenley how to add about 230 and what were you planning expecting to receive in this windfall.

Ironically, we have no idea yet. I've been staying at a minimum of 400,000 then from there okay and do you feel like you're on track with retirement savings and now you have job security to get back to retire at 60 which is only 15 years and do you have an emergency savings right now. Yet you have three.

At least not so. Here's what I would do. I really like the idea of your getting some of this money working for you because it sounds like you're behind and he's trying to fast-track retirement. So I think what's really critical is that you will have a plan to make sure that the house is paid off.

The time he and you retire or certainly if he retires because at that point, we want your lifestyle to be as low as possible so I don't know that I put all of it against the house right now based on what I'm hearing is likely to keep some liquidity and have some money working for you. I think I've run an amortization schedule to see how much extra you need to pay each year to make sure it's paid off when he retires. Thank you for your call Mandy. We wish you the very best moneywise live as a partnership between radio and moneywise media rate, we can find someone to help, then join us again on

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