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Plan for Future Tax Increases

MoneyWise / Rob West and Steve Moore
The Truth Network Radio
September 17, 2020 8:03 am

Plan for Future Tax Increases

MoneyWise / Rob West and Steve Moore

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September 17, 2020 8:03 am

The tax benefits of employer-sponsored 401K plans are fairly generous for now. But that could change as cash-strapped federal and state governments look to increase tax revenue in the future. On the next MoneyWise Live, hosts Rob West and Steve Moore tell us how to prepare for those changes. We’re planning for future tax increases on the next MoneyWise Live at 4pm Eastern/3pm Central on Moody Radio.


Here's a rule for you. What's worth $6 trillion and has a big red bull's-eye on its back, give up. Well it's the pile of money making up the bulk of many retirement accounts including your 401(k) tax benefits of plans are fairly generous.

For now change as cash-strapped federal and state governments use revenue. So today, our host Rob West tells us how to prepare your calls on anything financial at 800-525-7000 800-525-7000 times more planning for future tax increases. Next right here on moneywise live. Okay Rob so why are lawyers sponsored 401(k) plan so popular right now when there's no question that they offer a whole basket of benefits theme, including automatic contributions from your paycheck you concluding that tax-deferred contributions and earnings and possibly employer matching contributions. Yeah, right. So what's the problem then really get the concern with 401(k)'s well notice that I said tax-deferred. Basically that means grow now pay later contributing to a 401(k) is always made sense because most of us assume that our income will be lower in retirement.

When 401(k) withdrawals are taxed as regular income, but it's not paying later part that now has some observers questioning whether the 401(k) is in fact the end-all and be-all of retirement planning, and that concern is based on the belief that the government may well increase taxes on 401(k)s in the future. I presume so why do these observers think that will happen, but one more thing, you can blame on the coronavirus pandemic business shutdowns and high unemployment caused a huge drop in government revenue and in the cost of relief programs when that's added then you have federal and state governments looking for ways to overcome budget shortfalls even more than they typically are, so no doubt some lawmakers are looking at the $6 trillion held in 401(k)s as the solution and that's why we might expect tax hikes down the road. Okay, so what can we do about it. Give or what could maybe what should we do about it. I give up on her 401(k) and no I don't think so.

I think that would be an overreaction for most 401(k) savers, especially if your employer still offers matching contributions which many call and I would agree. Free money plus in the event you suffer a financial calamity. Your 401(k) is protected against liens and creditors. Okay, so what should we do well. I would just say we often talk about the need to diversify your investment holdings. That's of course a biblical principle comes right out Ecclesiastes, divide your portion seven or even to eat for you do not know what misfortune may occur on the earth the same way you diversify your portfolio.

Stephen stocks versus bonds or by holding equities in different sectors of the economy. You can also diversify between taxable and nontaxable income streams in retirement of the easiest way to do that is by putting some of your money in a designated for a Roth account. If your 401(k) plan offers that feature and many more. Are these days. This is essentially a Roth account within your 401(k) where you would contribute after tax money. Then later in retirement. Withdrawals of those contributions and earnings would be tax-free.

So you're setting up a tax-free income stream in retirement. Of course there are limits to what you can contribute to a Roth 401(k). Those deposits count against the total allowed for 401(k) contribution. So, just as a reminder here in 2020. The limit is 19,500 or 26,000 if your age 50 and older.


And what if you 401(k) plan doesn't offer that option. Well, then you would still want to contribute enough to your 401(k) to get the maximum employer contribution. If there is one then after that if you still have discretionary income to invest that you could open a Roth account outside of your 401(k).

However, if the government can raise taxes on 401(k)s and were concerned that they might, it can also raise taxes on Roth IRAs right. It certainly could. But politically I would just say would be nearly wouldn't be nearly as easy to start taxing Roth accounts as it would be to raise taxes on 401(k)s. You see, with the 401(k) lawmakers simply have to raise income taxes something they've done time and time again, but the Roth IRA was specifically designed to have tax-free withdrawals.

It's the whole reason for its existence and remember Roth contributions are taxed going and so it would be far more difficult for lawmakers to suddenly do a 180 on Roth accounts given the whole intention and designed by Willis degree in information they what Rob I have one other question let's come back after the break in us think that when and if we can then will go to our follows anything financial.

Today the is of interest to you is of interest to us. So make that call. Now while we have open lines 800-525-7000. This is gone, 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 Elmore and 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 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 investing is a short video webinar on the topic of 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 realize my need for car deletions talks about contentment in Philippians 4 only through Christ's strength and we had contentment we can say confidently like Paul God will supply every need of yours according to his Christ. More on Instagram bacterial radio 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 counselors not call 800-557-1985 with us today is moneywise line for today's financial choices and decisions and when I see this wisdom. Obviously, it's not about its Lord God himself the wisdom that he provides to us through his Word the Bible, not just thinking about what you just said our wisdom may age out before the programs even over so definitely not timeless are exactly right for maybe 30 minutes is not a good check the stock market maybe retract everything we just one of the question for you about these 401(k) any other options for hedging against future 401(k) tax hikes. I hear there is one, and that would be a taxable brokerage account. It would allow you to get around the Restrictions of a Qualified Retirement Plan, but You'd Incur Taxes Year to Year, so It's Not a Great Option.

But If You're Able to Max out Your Contributions to a 401(k) and a Roth and You Still Have Money to Invest a Regular Brokerage Account Is a Way to Go but I Would Say Make Sure You're Putting That Much Away for the Long Term That You Really Define What Is Enough. What Is Your Financial Finish Line.

We Don't Want to Just Accumulate for Accumulation Sake Want Have a Plan What to Pray about It. Want to Make Sure Were Giving As the Lord Leads and Saving Goes along with That, but Not Just Unencumbered Savings If You Will Let You Know. One Example Steve, of Exactly What We Been Talking about Here Just before the Break. If You're Just Tuning in, We Were Talking about, Given Potential Future Tax Heights, Especially in Light of What's Going on with Most States, in Light of the Coronavirus Pandemic. Not to Mention the Federal Government, and We Might See in Terms of Increases in Income Tax Rates down the Road Were Talking about How That Might Affect Future 401(k) Withdrawals Were Saying. Perhaps You Should Think about. Now More Than Ever Taking Advantage of the Roth Option inside the 401(k). If You Have It and That's What Don Mike Did We Asked the Question, Do You Have Access to This Kind of Roth 401(k) on Facebook and He Said Yeah the New York State Employees Are Blessed with the Optional 457 Deferred Comp, Which by the Way He Acts like a 401(k) and You Can Do the Pretax or the Raw Funds. He Says This Year I Contributed 50% to Roth 50% to Pretax. But He Goes on to Say, I've Recently Changed on the Now I'm Can I Contributing 100% to the Roth Option. So That's Exactly What Were Describing. You Can Mix-And-Match the Money Going into These Pretax and Can After-Tax Tax-Free Withdrawal and Retirement Options and I Have Both Options to Choose from, Depending on Which Is Most Advantageous When You Get to Retirement All Right Good I'm Glad You Pointed That out and Mike, Thank You Very Much for Responding to Us. Our Facebook Question of the Day Is Generally Put up Earlier in the Day, so Feel Free to Check Us out on Facebook and All the Primary Social Media Sites or You Can Give Us a Call Right Now Know This Radio Program 800-525-7000. So Let Us Begin. Indianapolis, Indiana W GNR Timothy, How Can We Help You Sir I Need Some Input on Reverse Mortgages.

Pros and Con, but If I Could Write My Situation a Little Bit. I Really Would like Your Perspective, the Eight-year-old Cannot I Live Alone in a House That Was Built by My Great Grandfather Clock Commemorate Here.

It Needs Some Serious Renovation but That Cannot Lively It You'd Be a Lack of Money to Invest in It. I Live in an Area Where Property Values Have Skyrocketed over the Couple of Years and There Is No Mortgage on the Home Only a Small Home Line of Credit. I'm Pretty Sure I Lived Here for the Rest My Life. But If I Invested in the Next 30 Repair I Could Easily Double My Investment or More If I Did Sell It and How Good Like-Minded and Renovated in: Street for Two to $300,000 with All That, It Would Seem That My Current Situation Doesn't Have the Pitfalls That a Reverse Mortgage Might Produce. But I Really Would like to Hear Your Advice Yeah Yeah I Think One of the Keys Is What You Just Talked about Timothy and That Is If You're Planning on Staying Put.

That's Obviously a Huge Consideration. If You Have Got Me Here at the Right Age and You Got Enough Equity in Your Home Certainly Converting That to an Income Stream Is Something It's Not My First Choice, but It Is a Viable Option. If You Have the Ability to Keep up the Taxes and Insurance. You're Going to Obviously Continue with the Homeowners Insurance and You're Not Planning on Going Anywhere, Meaning You Not to Get to and Adria Say This Is Just Too Much House. I Want to Downsize. You Know I Am Going to Stay Put You out There Are Some Disadvantages, Though, That I Think You Just Need to Be Aware of, You Know, One of Them Is Just That There Are Significant Costs You Know They Are Just Lender Fees and FHA Insurance Charges in Closing Costs and This All Gets Added to the Loan Balance Which Means You Know It's Just Going to Take on More Debt As a Part of This, the Interest Rates Are Structured so That Both Adjustable-Rate and Fixed-Rate Financing Is Available, but You're Often Going to Have a Rate That's Higher Than the Prevailing Rates.

There Are Other Options Things As Well Just with Regard to Your Considerations on Business Property Want to Stay in the Family You Know after It's Passed on, and Then You Can Have a Debt or an Obligation against It. That's Can Obviously Perhaps Limit Their Ability to Hang onto It so I Think You Just Need to Weigh All of the Options Realize There Is a Cost to It.

You Know I Never like Funding Lifestyle. With That, but I Recognize You're Sitting on a Significant Asset and If You've Checked All the Boxes You Understand the Cost You've Done Your Homework You Considered This in Terms of Your Estate Plan and What the Plan Is for the Property after the Lord Calls You Home and You're Really Confident You're Going to Stay There. You Know I'm Not Someone Who Would Say It's Never an Option. I Just Think You Need to Go in with Your Eyes Wide Open and I Prefer Taking Another Approach, Which Would Be Your Perhaps Downsizing Limiting Lifestyles. You Can Live on Whatever Retirement Assets and Income. You Arty Have As Opposed to Trying to Live off of the Debt Income Stream Tied to the House That Doesn't Make Sense and My One Question Would Be at Their Alternative to Painting a Large Sum of Money and Not Having to Pay the Payment Monthly Payment for the Time Being I Know and but Such an Increase in Their Value.

If It Is Mixed up with Pain Related Property Values Are Going Really Hot Neighborhood Right Now but You Probably Don't Realize That Unless You Sell Them at This Point You're Thinking of Hanging onto the Right Light Hang onto It. There's Really Nobody in My Family That Yeah Yeah Well I Think That's What It Comes down to Is Just Recognizing That You're Sitting on an Asset That Is You Said Has Appreciated Significantly Continues to Appreciate and You Just Need to Know That You Know If You Don't Have Enough to Cover Your Expenses.

You Got a Couple of Options. One Is You Can Convert That Asset Is You're Talking about, to an Income Stream and That Would Be Either Lump Sum or an Income Stream with That Comes at a Cost or You Sell It, You Realize That Game and Then You Take That Money and You Buy Something Smaller for Cash. Perhaps It's More Manageable Then You Convert the Balance to an Income Stream through Investments. I Think Those Really Are Two Options You Need to Pray and Think through Timothy.

We Appreciate Your Phone Call Today Sir and We Wish You the Best As You Pursue This and I'm Sure You Will Be Asking God's Wisdom. Thank You Very Much.

800-525-7000 St. Louis, Missouri Anna, How Can We Help You about a Raw Fire and Your Program and I Opened One about the Packet I Open One with $7000. I Was Thinking I Had to Pay Taxes on $7000, but My Understanding from Talking to People Is That I Don't like Hate That When I Getting Night Payroll Checks Claim the Tax Yeah What You're Describing and Is Exactly Right.

Keep in Mind the Alternative to a Roth IRA or a Roth 401(k) Is a Pretax Option. So Think about You Getting Paid and Having a Pretax Contribution Go into a Traditional 401(k) It's Excluded from What Would Be Taxable to You in the Form of Income, Meaning You're Not Paying Tax on It As It Goes Then so Essentially You're Getting a Deduction for That Amount Because You're Not When You Pay Your Taxes at the End of the Year That's Gonna Be Excluded from the Rest Your Income, Then It's Going to Grow Tax-Deferred. And Then When You Get to Retirement. Start Pulling It out.

Whatever You Would Draw on That Calendar Year Is Good to Be Taxed As Ordinary Income. With the Roth IRA or 401(k) You Were Paid on 100% of What You Got. So You Already Paid Tax on It. Then You Make the Contribution to the Roth You're Not Gonna Pay Taxes Again. You've Artie Done That. You're Just Not Going to Get the Deduction That You Would Get If It Went into a Traditional IRA or 401(k).

So You Receive the Income to Pay the Tax. You Make the Contribution up to 7000.

If Your Age 50 and Older for 2020 and That Money Is Now Artie Been Paid Tax on Its Gonna Start Growing and It's Going to Grow between Now and When You Start Pulling It out At Least Five Years from Now or in Retirement. Ideally, and All the Gains beyond What You Put in As After-Tax Contributions.

All the Gains Are to Come out Tax Free and That's Where It Really Shines Because This Money Is Going to Grow over the Next Let's Say 10 or 20 Years or More, Because You Don't Even Have To Pull It out with the Required Minimum Distribution on the Roth IRA and All That Money That You Made in the Stock Market in Your Diversified Portfolio Is Now Tax-Free Money Coming Back to You This Make Sense. So I Understand Better. Okay Very Good Weep and I Think You Made It a Great Choice Herein, and I Would Just Be Be Consistent in Your Contributions to That Picture: yet Thanks Very Much and I Got Bless You, If You Just Tuning in, and You're Wondering Who Are Those Guys I'm Looking for My Country Western Station.

Well the Station Is Still out There Somewhere, but This Is Money Wise Live If We Can Help You with the Money Question Now Is the Time to Call 800-525-7000.

These Rob West, I'm Steve Moore 800-5257 Moray Pio Moneywise Live 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 and Start to Actually Click Away Where We Are on Our Walk. The Only to What Particular Kind of Walking in to Get a Spare Trap or If There Is Such a Place to Pursue the Knowledge of God to Do His Best Arrogance. Not Too Long. It Was a Great Then Bible Students What Melissa Exhorted Me to Do I Guess about a Year Ago When She Looked at Me and Said Matter. You Need to Get a New Bible. Looks like You Start to Much about Melissa and Her and Terry Graham Probably Need to Help People Knew He Studied Bible Is Been Listening to Only Do You Know If You Have Enough Money House. Do You Know How Much Is Enough. If Not, One Blue Can Help with This Book.

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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 Store Button Moneywise Live Outdoor Moneywise Live in the past Hosted His Radio Program. Our Good Friend and the Late Terry Burket Reminded Us That the Justification for Anyone Investing Is That He or She Has Given What God Has Asked Them to Give. He Has Met the Reasonable Needs of His or Her Family, and He Still Has a Surplus. So If You Wondering about Investing and When's the Best Time to Do It. First You Want to Make Sure That You Have Those Basic Minimums Met 800-525-7000 Rockford, Michigan Hello Elaine, How Can We Help You Now Wondering When You Are on Night Yeah so You Answer My Question There Right at the End You Think This Can Happen in Less Than Five Years of Targeting, Perhaps Even Sooner Than That. Okay All Right Yeah You Know Elaine, I Probably Would Pass on Buying a Home, Especially If You Don't Plan to Keep It Rented out, Which I Would Caution You against If You Go to Be an Absentee Landlord Because You're Not Here to Watch over It and Maintain It in with the Repairs. Unless of Course You Hired Somebody to Do That or You Had Family That Would Do That for You so I like the Idea of You Continuing to Rent. Given the Uncertainty, the Changes That Are Coming. Last Thing I Want Is for You to Make This Major Purchase and Then You Know after 10, 11 Years of the Housing Market Really Screaming on the Upward Following the 2008 2009 Housing and Credit Crisis If We Were to Come to Take a Downturn You May Lose Some Money There. Not to Mention the Cost of Buying and Selling the Piece of Real Estate Is Significant. So in Order to Miss All of That Is Much As You Might like to Own a Home and Know That You're Making Some Headway toward Building Equity. I Think Just the Cost. The Uncertainty and the Potential Dip in the Housing Market.

We Could See in the Next Couple Years Would Cause Me to Say I Think You Ought to Just Continue to Rent to This Point. Hang onto Your Cash and Then You Know Develop a Plan, Perhaps with Financial Advisor for What You're Going to Do with That Cash While You're on the Mission Field. If You Need to Convert That to an Income Stream or Its Money. This Just to Continue to Grow You Don't Have Any Intention of Touching It. Unless Something Comes Out Of Left Field to Some Extent so Now How Long Home. There Is Not Hard and Fast Is Because We Don't Know What Can Happen with the Housing Market, but I Would Say, Given the Uncertainty in That, and Given the Cost of the Transaction to Both Buy and Sell. I Would Say You Need At Least Five Years and I Would Be Probably for Me. I Would Say 5 to 7 Years. I Would like to See in That Home for It to Make Some Said Certainly over Five You Would Expect That You Can See a Little Bit of Appreciation Enough That You Can Enjoy It and and Hopefully Cover the Cost of Buying and Selling It.

So I Think Five Is Probably That That Key Number, but If It Could Be 1 to 2 or Even Three. I'd Say I'd Probably Hold off Elaine.

We Hope That Advice from Rob Which I Think Is Great Advice.

We Hope That Doesn't Discourage You. The Same God Who Is Going to Meet Your Needs in the Mission Field Will Provide You with a Home at the Optimum Time Most Likely When You Come Back Unless You Stay in the Mission Field for Much, Much Longer Than Typically Expected. We Wish You the Best. Thank You Very Much Rob about a Quick Email Here before the Next Break.

This Is from Sharon. She Says Her Bathroom Needs Remodeling One Company Offers No Payments for Five Years.

I Have Retirement Money.

How Can They Do That.

Is This Too Good to Be True. Yeah. So As We Look at This. Steve, You've Got to Think about All Considerations Here Are There so Many Moving Parts There. Let's Do This Again. I Had to a Break. So When We Come Back Right after the Break and All Impact the Answer Right When It Comes to Bathroom Remodeling. There Is No One More on Top of This Is the Issue Than Rob West Course Were Not Discussing at All about the Difficulty Finding Another Thing Altogether. This Is Investing Is More Than Just Return It's an Expression of Who You Are and What You Value. When You Invest Your Money Reflect Your Identity As a Christian, and Even Tightly Design Investments for Performance and a Better World so You Can Invest with the Confidence to Reach Your Financial Goals While Remaining True to Your Christian Values and Commitments. We Call This Investing Makes the World Rejoice More Is Available Best Invest 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 Communication. 20 Artifacts.

Within You and Cause You to Walk in and Be Careful to Obey My Rules. 626 to 27 Verse All Spiritually Rest Their Children Knowing How to Pray for Them Can Often Be As Challenging As Knowing What to Bring on Host Publishers Reading for Change Podcast I Challenge Is Pick up Your Copy of Publishers the Financial Wealth You Leave behind Could Be the Best Thing That Ever Happened to Your Loved Ones or the Worst in Splitting Hairs.

Given 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 with Answer and News on Buying New in Washington from Smoke Today at a White House Conference on American History at the National Archives Museum along with VP Mike since Their Message Was on the Importance of Preserving and Repairing America's Founding Documents against the Corrosive Challenges of So-Called Cancel Culture As Well As with the Present Called Other Leftist Efforts to Dismantle Traditional American Values. The Number of Americans Applying for Unemployment Benefits Fell Last Week to 860,000 Labor Department Notes of 12.6 Million Are Now Collecting Traditional Unemployment Benefits.

That Is up Drastically from a 1.7 Billion Year Ago.

The Weekly Total Is an Historically High Figure of Course It Reflects the Economic Damage Done by the Coronavirus Outbreak on Wall Street, the Dow Jones Industrial Average Struggling to Stop by 130 Points.

The NASDAQ up on 140. This Is Excellent News Today Lies Five W. and We Do Take Your Emails in Addition to Phone Calls. If You Have an Email for Rob, Just a Couple of Lines. The Address Is and our email for today from Sharon Rob or bathroom needs remodeling one company offers no payments for five years. I have retirement money. How can they do this and is it too good to be true yeah because a lot of moving parts are number one no payments for five years. That sounds a bit longer mean typically tier 1 to 2 years. But regardless, why are they offering that will. The reason they're offering that is there's a finance company behind and not the company offering the remodel.

The contract was somebody that knows that if they give you a couple years to pay it. EA even had zero interest with no payments there is interest accruing and if you haven't paid in full within that period of time, and most people don't know there's gotta be a ton of interest. That's can be attached to this and so I would just discourage you from taking those options is much as they sound great. I would rather you save save save or have another plan to pay for it, rather than just expecting you're going to come up with the money to pay it off over that period of time, only to find that you don't and now you gotta tackle this interest onto which by the way is probably fairly high as to retirement money. I don't like the option of using retirement money leave that there that's what it's for.

Let it keep growing. So I would say, or if you have the ability to work in the budget look at a short-term home equity loan. By the way, according to the remodeling industry and there is an association of remodeling.

Apparently they say that homeowners typically recruit workgroup up. I'll try that again recoup about half of what they put into a bathroom remodel project so you gotta stay there for a long time and enjoy it. Great go-ahead and do it if you can afford it. If you're planning on selling them in the next couple years are probably not get the money back.

Great information. Thanks very much. Go back to our phones, Missouri hello Terry, what you question for Rob question about refinance and I currently have a mortgage for 3.75 and if I could save a percent. I only have eight years left to pay it off. Oh yeah, I would be hesitant Terry you know I mean perhaps if you were to do a 10 year mortgage. How much do you owe on it. Still, at this point about 50,000.

60,000 right so you could get a mortgage for sure means that a lot of mortgage companies require at least 50,000. Some might go down as low as 30 but the bottom line is the cost of refinancing is gonna be right on the bubble there because you're probably not going to get a full interest rate reduction without having to pay either at some discount points or a portion of the appointment and or some upfront costs in addition to just the typical costs of refinancing and so the cost that you're going to have to incur in order to get that probably less than 1% reprieve on the interest rate for the short period of time is not going to pay off now if you are really eager to explore it. You have some extra time you can certainly take a look at it you want to get a good faith estimate so you know exactly what it's gonna cost you, and points in any origination costs as well as the other costs that go into it.

Taxes and appraisals and those kinds of things find out exactly how much is gonna cost you, and then figure out how much interest you're gonna say per month and how much total interest over the life of the loan. Let's say you to do it for for 10 years and just compare that with what you're on your current amortization schedule with your mortgage company could provide what you're paying interest over the balance of this loan and II think you'll find Terry that it's just not gonna pay off its you're not get to save a lot of money if you do save any and the hassle of going to the refinance is just not going to be in your favor. So I would certainly count the cost before you do it and I think what you can end up finding is that it probably just doesn't make sense. Terry, thank you very much for calling in today.

Let's quickly moved to Sauk Village, Illinois.

Ayana what's on your mind will will will will will will yeah I like the 403B contribute anything in the form of matching for any of your contributions well, okay, no problem. Is it still a good option because it's good to give you the most in the way of your contribution limits you be able to put in $19,500 if you're over 50 you be able to put in a full 26,000. Not that that yet necessarily have the ability to do that but I mean you're going to be able to put in much more than you would in an IRA and it's going to going pretax.

Which means you get the deduction as it goes in, and then it can grow in the investments that are inside it. You may want to get some help in choosing those and then as you pull it out in retirement. Once you stop working and need to convert that to an income stream. You would just pay tax on it is as it was income so I like that. I think it's a great way on a tax-advantaged basis for you to be systematic in your contributions very easy to set up because they can do salary deferral so it comes right of your check before you even see it and then I think that would be a great option for you. Okay I will well they're going to tell you so here are the school board is going to have of the 43B plan for you and so you have to use whoever they have contracted with as a custodian and you will be investments inside that for 3B, but when it comes to those types of retirement plans 401(k)s for three bees. You don't go out and choose it. You just take the one that is offered to you on a retirement basis okay and we wish you the best with that.

Thank you very much. Let's see one more before the break, Wichita, Kansas. Pauline you have a timeshare you're trying to deal with. What's the scenario, there timeshare a little over 30 years ago. I think your program quite often and I.

You talk about it that I'm really trying to find out if there are ways to really get out of it without it being so costly are get out of it altogether.

Yeah, we get this question a lot and unfortunately there aren't great options, you know, it's just difficult because the secondary market for timeshares is not good because there's just such low demand, but on occasion it can work. I mean, here's the steps I would take just to explore this number one you may have Artie done this but I would always start with the management company that oversees it just to see if they have the ability or a program in place to resell it, or attempt to resell it for you and the people were staying at the resort would be your best prospects and they're already talking to the management company so I would start there. Beyond that there is something called the timeshare users that's TUG the number and they have a lot of great information about selling a timeshare. They also have a marketplace to help you do it where buyers and sellers come together so you could check that out. That would be a great place to go beyond that you can advertise it locally, you can advertise it through social media. You could consider renting it. Instead of selling it. I don't recommend giving it to charity.

Since the charitable organization will be responsible for the maintenance and most don't want to do that, they probably would even accept it. So I think those are the steps you need to go and let this be a warning for those who are considering a timeshare to just think long and hard, perhaps even talk to some people who own them before you make the leap because it's it's a forever commitment and those maintenance fees don't go away and their lot better ways for most folks to enjoy calling.

Thank you very much for contacting us today. This is moneywise live what we help you understand and establish God's plan for your life and your money buying a home is the largest most nerve-racking purchase. Most of us ever make.

It doesn't help that you're entering a maze of unfamiliar words and confusing options that can lead you intimidated frustrated and afraid.

You can take advantage of navigating the mortgage mates by Dale Vermillion help you clear up the confusion on rack your nerves and make the best mortgage decisions possible with confidence navigating the mortgage maze available when you click the start button moneywise hi I'm very glad I'm here to help you understand how urgent it is a sugar for every opportunity to the eyes of a layman. There's a stigma that is attached to personal battles and the fathers everyone. No one wants to evangelize or be evangelized. That's because a general perception of evangelism is negative and dead wrong Jesus that people know where to start the fire.

Love, not by academic study or Bible memorization or prehearing order to start loving God wants to love the world through us and said no training required. Just don't get upset when you live on them. They will build God when you level in the fun begins in the asked your question you can answer just asked for trying to find the answer what your prayer life or Bible while you find the answer you let out a shout and then you get this.

There is nothing more exciting than knowing God is using you to move people closer to join is not This is gold scams are nothing. You combine content would cover a brass ring with a thinning hair of gold. He then going to crash when it might be seen when some inside retreat to lead us unless you want just one great value for reaching for something that will give them a sense of security there any bad things when they seem to have everything taken because all dictators is gold. Jesus came so that you can have life the way God intended forgiveness and peace satisfaction life forever in heaven. Find out more, call me to contact life with someone now needs Most couples can't talk about most money books expected. How can you create a pay down debt. If you can even talk about spending or saving. If you get tense about or just plain avoid money conversations altogether thriving in love and money by Chante and Jeff felt hot is for you and it's your screen when you donate $25 or more to moneywise thriving in love and money for a better relationship not just a better project is today. Thanks so much for being there. And thanks to our team.

Our check today when we are loaded for bear as they say Amy is here in Devonshire Capi is here that he of course stands were talented and of course rich arousal of bringing up the rear, not necessarily bringing up the rear, but maybe anchoring maybe bringing maybe anchoring the tire group. I'm not going any where near that. That's right, I would if I were you, either Tampa, Florida, Ethel, thanks so much for your patience. How can we help and money I have about eight Mayor program. Everything what Mayor Pat Gladwell oh, and I began thinking that I needed a CD so I went in the mining and chocolate different people about the best thing to deal with it and get it to get back find you can't buy it, do a barrel annuity that that might not like you not think of me at my thinking up putting an end to what CD there is a CD that would make it cloud different between nonqualified and will have to pay taxes on it cloud. I would not have to pay taxes on what may be an immediate or deferred linking well you certainly could do that. I appreciate that exclamation Ethel, you said you have 34,000 that came out of the drop is that right okay now now now now okay and this is money you don't plan to touch unless you need it. Down the road or you needing to draw an income from this right away right away. Okay all right well but the bottom line is you know an annuity can be a good option if you're risk-averse in recognizing the season of life you not looking to take on a lot of risk, but what I mean by that is, you have really two options that you have to decide on upfront you want to take responsibility or hire somebody to manage this money for you and challenges with $50,000 roughly. It's probably below the minimum's of many investment professionals and so you you're going to have. Not as many options for somebody to take this and actually put it to work for you. As you might if you had one or 200,000. Even though I recognize it's a significant sum of money, but you want to assume the risk of figuring out the investment strategy or you want to transfer that risk to in the case of an annuity transferred to an insurance company and basically they'll give you an insurance contract that promises estate of Ray to return with a variable product that's going to be tied to a stock market index, maybe with a floor and you perhaps get some of the upside of the market, but you don't get the downside, but you don't get all the upside, so you're essentially you know going to follow some of the moves of the market with some downside protection. Or, as you said, with a fixed annuity or an immediate annuity where you'd start collecting payments right away or at the very least with the fixed annuity you get a stated interest rate. This can be a bit higher than a CD and that's really the pro is that your transferring that that risk you're getting that guaranteed rate of return. So what's the downside well there complex. There are bit hard to understand the fees associated with them, make them more expensive than other retirement investments in the net returns on the withdrawals are taxed as ordinary income. And so you just have to recognize that and recognized you know what you're getting in terms of the guaranteed return inside the doesn't mean it's not the right option for you in fact is you're talking about.

Just wanted to take as little risk as possible. I think an annuity may may be a great option. The key is to recognize not all annuities are created equal in terms of what you receive in terms of the return and the cost side and that's what I want you to be careful about. I don't want you to pay a lot of high commissions and fees on this product such that you know it's gonna potentially erode some of what's there and in the cash value and you just lock it up for a long period of time. So let me encourage you to do this I would visit with a certified kingdom advisor there in Tampa you can find one on the website moneywise this is gonna be an investment professional who sell shares your values and can give you some counsel probably direct you as to where you need to go next. To evaluate either the annuity option or the investment option and see which one you feel most comfortable with the end of the day you can do that just click find a CK put in your ZIP Code. I'd interview a couple of them pick their brain and then decide that where you want to go from here. Sandy and Peninsula Ohio. What's on your heart today hi I have an arm I'm 50 years old and I have no retirement plan whatsoever. Teacher I have been had that own business so try to figure out what would be next me about $25,000 in savings on top of house paid off what we should give them a copy will earn more income and get the more stating that we go back in action and I am about the Roth IRA IRA you did on your own your own Roth IRA to get closer to the company. I absolutely yeah we were talking about the Roth 401(k) which you would need to have through your company, but a Roth IRA, you can absolutely do yourself and that you be able to put if you're over age 57,000 this year.

Each of you as long as you have earned income, you know, I think the key for you all delighted to hear that your home is paid off. That's going to allow you to keep your lifestyle very lean. I think the next step is for you if you haven't already, to do a detailed spending plan and budget so you understand exactly what it's gonna cost you on a monthly basis to fund your lifestyle really have an accurate accounting of not only the fixed expenses but the discretionary ones just based on what you have been doing and what you think that will look like in retirement.

Add to that some of the nonrecurring expenses maybe quarterly or annual expenses that you need to factor in on a monthly basis, putting some money into savings what you got a real clear picture and by the way, paying off that house is going to take a big chunk out of that then you know what you're solving for in terms of income, so you'll know okay how much is Social Security going to make up what we need to do to supplement that will perhaps with some part-time work and what can we be doing to stock of socks or money away you as were able to on a yoga tax-deferred basis or with a Roth you're putting after-tax dollars in the you having it available on a tax-free basis so it can be growing. You know over the next 10 or 20 years even while you're in retirement. Keep in mind you, you're going to still want that money invested at least a portion of it because that's going to get to the returns up slightly and you know you need to make sure that you have a strategy to fund your lifestyle for the rest of your life so you know there's not a silver bullet here, but I think the key is keeping your lifestyle in check and being able to save as much as you can as you continue to earn income in the years ahead. Cemex and Cindy better. Well, so keep in mind that there's the type of account and then there's the investments in it. The Roth is simply the type of account so Roth IRA is just a retirement account that allows you to put in after-tax dollars and have it grow tax-free. So the think of the Roth is the umbrella the investments are underneath it and it should. It shelters the investments from the taxes, so as it's growing. There's no taxes eroding your investment returns and then all the games you have between whatever you put in and when you start taking it out are going to come out tax-free. But the investments inside of the Roth are the same investment you could have in any account, stocks, bonds, mutual funds, exchange traded funds anything you like. So I go to Charles Schwab look at their intelligent portfolios you could look at betterment you could visit with our friends and sound mind and and by the way, will send you a copy of the soundbite investing handbook abuse down the line that'll give you a good primer on all this and define a lot of these terms we were just talking about Cindy, thank you very much. We wish you the best down to Florida and Jeff, would you have to be superquick about this understanding, moving into self-employment. You're concerned about health insurance or any options in that regard is that correct yes sir looking and also may end up going into partnership in the business and the owner of the business. Also will is looking for health insurance and I've heard of the Christian-based care type insurance just can't figure out what's best affordable start now and then maybe get better as we go along. Yeah well I really like this option. Jeff especially for somebody who self-employed you know that when you're out there in the open market looking for health insurance, the cost can be just figuring your given what we've seen in the just the healthcare space.

As of late, so I would absolutely look at the the alternatives which is a good Christian health cost-sharing ministry to our good friends at Christian healthcare ministries would be delighted to explain exactly how that works, you'll find but essentially it's tens of thousands of Christians coming together, sharing each other's medical bills. You'll find it is a fraction of the cost.

Again, it's not insurance but you would have the confidence that there would be the backing of CH ministries to be able to pay per incident over in most cases $500 per incident covered even up to unlimited amounts and that we even have some people on our team here at the moneywise media that used it for years and love it. So I would definitely check into it to save you a lot of money and will be a great alternative. Now, we certainly do have confidence in those boats they been around for a long time, going all the way back to Larry Burket when he was the host of this program and they been a great blessing to hundreds of thousands of Christian CH ministries.ORG don't forget you can find out more about who we are what we do. You can also find some free resources and past radio archives or archives of past radio programs when you visit us online moneywise live.ORG moneywise live is a partnership between Moody radio and money want moneywise media for Rob West, I'm Steve Moore.

Thanks much for listening. We hope you have a great remainder of your day tell a friend if you enjoyed this program so they can enjoy it as well and will be back tomorrow with a brand-new edition of moneywise live Us

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