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Do You Need a Financial Advisor?

MoneyWise / Rob West and Steve Moore
The Truth Network Radio
November 6, 2020 7:03 am

Do You Need a Financial Advisor?

MoneyWise / Rob West and Steve Moore

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November 6, 2020 7:03 am

If your car needs repair, you take it to a mechanic. Or if you have a health problem, you visit your doctor. But when it comes to your money, do you get advice from a financial advisor? On the next MoneyWise Live, hosts Rob West and Steve Moore talk with Kingdom Advisors founder, Ron Blue, about the importance of seeking sound advice as you manage your money. That’s on the next MoneyWise Live at 4pm Eastern/ 3pm Central on Moody Radio. 

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Proverbs 1920 says listen to advice and accept instruction that you may gain wisdom in the future and perhaps nowhere is sound advice more important than in managing your money. Mechanic health problem you visit the doctor. What's the best approach that you should check with money today host Rob West sits down with Kingdom advisors found around answer the question. Do you need a financial advisor.

I'm Steve Moore. This is some biblical financial principles of today were looking at a section of master your money a step-by-step plan for experiencing financial contentment.

Well, that's right, Stephen. It's certainly one of our favorites. Ron delighted to have you back on the program. It's always fun. Thanks for having me. Absolutely you've had decades of experience teaching people to manage their money.

God's way, but your career in finance. I know didn't start out that way. So I want to start by just giving us a bit of perspective in the back story on how this all became what you call a kingdom mission for we don't have time for this short short version.

It was actually 53 years ago, graduate University with an MBA degree and I have my CPA and I went to work on Wall Street and I spent three years worth at that time, Margaret Mitchell, today's KPMG at that time the world's largest accounting firm, spent three years there and then decided to start my own accounting practice. Back in Indiana which is where I come from and went back and I finished second on the CPA exam when I took it and so hard to get it finished one side may have somebody do the work. My avocation has always been marketing and not work, but I spent seven years and as I look back over that seven years. This was pre-computers and I sat across the desk from hundreds of entrepreneurs and professional people engage in counsel, primarily in the tax area, but I have a lot of experience in counseling people. So now this is all look back.

It's not. I didn't realize at the time what was going on but what God did was by starting on Wall Street. He gave me some credibility and then seven years of counseling people.

He gave me some experience not only in counseling but how to build a business that was time-based rather than product based yes and then I spent two years I decided to leave the CPA world and I spent two years I traveled Africa made 11 troops over there and saw the third world, which gave me a perspective because when you deal with the wealth in America. And then you look at the Third World.

You see things differently. Yes and Dr. Howard Henriksen was my mentor asked me to take a look at his financial situation which I did and was able to say to Harry and Jean.

You know what you're doing just fine and now I look back on that and I know that everybody wants to know the answer to the question how am I doing, and no matter who it is I want know how I'm doing. So I started a wet later became a financial planning firm and I charge for my time rather than selling any products in the first client to pay me a fee. I helped him develop a plan to give away million dollars over five years now. That was when I looked back and this is all happening in the last year and I did look back in, I realized that if that client and only given 100,000. My bar would've been 100,000 but because that couple gave $1 million. After that, I don't have any trouble helping people. Think about how much they could really give millions so my mission was to help Christians specific to the Christian world plan to manage their money for one reason and that was so that have more money to give away and you been on that journey ever sense. And if I remember the story correctly Ron that client that first client to give away million dollars was not someone that was ultra high net worth, no, in fact, when I talked to me.

I support your income, and he said 82,000 a year and I said what you have in a way that assets me, so I don't know through 400,000 supposed credible. Yeah well I know you've been her best to live out that mission ever since to help Christians plan to manage their finances to have more to give away and that's really fueled everything you've done professionally.

More about the this moneywise.

I'm your host is Rob West, our special guest today, Ron blue will be right back, buying a home is the largest most nerve-racking purchase. Most of us ever make.

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When we arrived I wheels team leader lined up a wonderful assortment of different kinds of wheelchairs and said each of these wheelchairs is totally because people and their needs. We are committed to finding the right share for specific need Marine began among the staff and one person said this just what you're saying is a new concept World is changing the way people think in China. It's individual wheelchairs for individuals and their individual needs better China today Johnny and friends.org 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 out of credit card debt percent faster while honoring that data and phone to learn how Christian credit counselors can help you visit Christian credit counselors.org Christian credit counselors.org or call 800-557-1985 is today. Your host is Rob West times today, chatting with author, teacher questions how my doing and a financial advisor Iran this is so important because just before the break you were talking about really the journey God took you on to develop the kingdom mission that you had for the work that you do and I think this really highlights at its core.

The difference between a financial advisor any Christian financial advisor and I'd love for you to talk about that because as you build your firm you saw God's word proved out at a professional level in terms of financial decision-making.

Yes, I really do not have the professional experience and then when I started helping people plan I realized that everything that worked on Wall Street had its roots in Scripture. Now they didn't know that a course but God's word speaks to every financial.

I believe God's word speaks every financial decision that anybody will make it any time under any set of circumstances. That's a strong statement. Yes, it is said that her pastor one time and he said well then why isn't the church. The purview of finance. It is a good question and you know God's word works in every area of life so there's there's no area of life that he doesn't talk to but money was one that the Bible talk to the most Howard Dayton said that there are 2350 versus the deal with money and what I found over 50 years or 40 some years and I've been helping Christians is that God's word speaks to every situation, but is speaks in a very understandable way. I played golf yesterday were someone who is not a believer and he quoted a Bible verse to me render under Caesar.

What is he when he found out what I did. He quoted that verse.

While there is a principal right there that governs how I think about taxes and handle taxes. God's word is is simple, but it's also relevant. That's why say the work at all times under any set of circumstances.

It doesn't change whether I have $100,000 or $1 billion, or if I have nothing and am trying to get out of bed and trying to get my feet on the ground is still the same principles spirit simple, it's real relevant and is highly replicable. It's easy to explain it to somebody else and if I could say one thing across my mind when you were just talking Rob in terms why do you need a financial advisor.

I have a financial advisor and have written a bunch of books on money so he doesn't tell me anything I don't know about money, but what he does do is he keeps me accountable and number two the first person that my wife would call modified test would probably be can yes because he he knows the whole situation and it gives her a piece of heart and mind to have somebody that can help her out. That has no bias if you will except to help her, but that's a really key point because as you all meets in whatever frequency you need quarterly or semiannually. He can ask the questions to her and you.

Perhaps you all wouldn't unpack otherwise and annual challenge. Things we made a decision to give away our retirement number of years ago.

Not pretty big decisions of this and we sat down with Canon recent can we don't believe that were getting older. Our kids are doing okay and we got income that's coming and we don't need this chunk of money that said northern retirement plan work and give it away. There's a lot of money, a lot of money for someone on money for a lot of people, but but he really challenges on that. Do you realize what you're doing to you.

Realize the consequences of that and those were the right questions and they have somebody independent ask and be able to answer and for him to say okay I think you thought it through, though having a financial advisor is really important about Ron blue needs of everyone needs a financial advisor, Ron talk about the difference between a financial advisor and a Christian financial advisor. How would you characterize the blood lab early learn something in the last 15 years, and we been building kingdom advisors. I spent all thousands and thousands of advisors that I talked to and all of your Christian but when you talk about giving your advice from a biblical perspective, and your clients knowing that all of a sudden you separate the sheep from the goats. And there's a huge difference. I can be a Christian and run my business with integrity and in every way demonstrate a Christian life, but that's my life and can I run my business so that the advice that I'm giving is biblical advice on the reality as it probably will be the same advice, but now I know where it came from. And so when somebody makes a commitment to become a Christian financial advisor. It changes the way they think, and it changes their advice and how they get their advice will run. We often get calls from listeners saying, what should I look for when I'm interviewing a financial advisor and are there any questions I should be asking, so apart from looking for somebody who's been trained to bring biblically wise financial advice, and I know you would agree that the certified kingdom advisor designation is really the gold standard for that. What should someone look for when interviewing well. I think having a conversation and becoming convinced in that conversation that this advisor wants more than anything else to help you identify your goals, your values and your priorities and then design his advisor. Her advice around that yes so in interviewing a financial advisor. I'd be real interested in what questions ask me because they asked me so many questions about investments or taxes are those are legitimate that I be more interested in advisor that asked me questions like how are you thinking about your giving is that what what relevance does not have to your financial thinking.

How do the two of you communicate when it comes to money. If you're sitting down for coupling. You should be always. And because this is an area of terrific conflict in this conflict because if you take two people have been raised differently certainly put them in the one checkbook, you're bound to have conflict in the sense of not always agree on something. Yes, so, so I would look I would want to know who they worked with. I would want some references a couple of references from who they work with. But I want reference guide asked them for somebody that was like me in terms of a reference but perhaps my age. Perhaps my spiritual level of commitment and certainly the wealth that I have or don't we have just a few seconds left unfortunately had loved unpack this much, much further, but I know you have often said you would pray.

James 151 every meeting. It's really it's about an advisor is to bring God's wisdom is it your really is and that that's a good question to.

I would ask how much time are you spending on the word. I believe James 15 is the best financial planning verse in the Bible problems but I guess today find his master your money yet moneywise live.org you can also get in touch with the certified kingdom advisor.

From there, just click the find SEK a calls next.

800-525-7000 800-525-7000 moneywise live a wrong turn when it comes to money. We all steered clear moneywise. The magazine is all about helping you make moneywise.

This is my Articles to scare you in right direction where free magazines.

Inspection is waiting for you right. My wife got away everything we were going through our minds because their guarding against chapter 1 don't talk to you. Consider this point Like a flat we ourselves are things we can believe that God says he is in the.what he's going to do my God can, with uncertainty, after trading power in our personal life or no Christ.

Scripture is God's agree with you more about our money than most of us imagine Jesus is more about our use of money and possessions and about anything else, including both heaven and hell in managing God's money on the radio and breaks it all down in a simple, easy to follow format that makes it the perfect reference to if you're interested in gaining a solid biblical understanding of money, possessions and eternity managing God's money is available when you store moneywise.org today is Rob West. All you will learn all sorts of stuff that we thought we think we know a lot about the Bible and money and finance, then run shows up in the Springs a lot of stuff on this. Maybe some of what we've heard before, but the way he understands it the way he's able to teach it and explain it is just always a blessing to have in the studio with us. Well, it sure is. He's a blessing to me. I have been a mentor for a long time but you're right, Stevie takes these principles and makes them so profoundly simple and it's not prescriptive.

He gives it to you in a way where you can apply it over and over again to your situation, so it's always a joy to have them stop by. That's for sure is. And it's a joy to talk to you but you will have to place that phone call first know we have some open lines. We actually have about five open lines and that means there is plenty of room and space for you to call in today right now 800-525-7000.

Whatever you might be wondering about thinking about going through anything financial I want to give us a call. Let's kick it around. Let's see what God's word has to say about it again. Our toll-free number is 800-525-7000 L in addition to calling you can always send Rob a brief email. The address is questions@moneywise.org questions@moneywise.org we happen to have one here from Linda we have a couple actually this ones from Linda Robert since my mom has us has a couple of small insurance policies that my dad took out of her years ago, they are more than paid for, but she still has to pay monthly.

Should you just cash them in.

What kind of penalties might there be yeah yeah we see this often with a whole life policy weathers a very small death benefit. Where was taken out probably is a savings vehicle more than anything, although obviously the small death benefit is a factor, but if she's had these for years and years.

There probably is no penalty at this point was when asked that question, but usually those surrender charges go away over a period of time. The question is is this life insurance actually serving a purpose, is it necessary at this point, both in the amount of the death benefit and just in terms of what life insurance is needed because perhaps you have other coverage with other policies or therein a retirement season and they have all the assets they need.

So if something were to happen to your mom or your dad or vice versa date the other person would not be dependent upon that person's income. For instance, because there are retirement assets that are providing there. So if that's the case either.

It's a duplication of the seven existing policy or they just simply don't need life insurance in this stage of life, then I would absolutely make that call. Confirm that there are no penalties and at that point they could just ask for a gay withdrawal of the cash value that they could redirect for other purposes. Savings are giving whatever it might be and then they would just close out those policies. Okay, good. Here's another from Arnie he says dear Rob and Steve. Is it okay to give to two well-established nonprofit organizations who are not necessarily Christian organizations. That's a great question and you know I think we always need to give consideration to how were giving and where you note, which starts with the recognition that God owns it all and we should be effective and faithful stewards of God's money, and I think part of that faithful stewardship. Steve includes our generosity are giving.

We need to hold God's resources with an open hand and we need to organize our financial life in such a way that we have margin so we can give. We should give up front systematically but then I think over time, we want to try to increase that with even more sacrificial giving now. Once we experience the joy of giving and we reorder our finances so we can do even more giving over time.

Then we all are faced with that question. Where should we give and I think we've got a start with a connection between what's on the heart of God with what passions we have and who's doing effective work and so when we look at the heart of God. We see the ministry of God's word. The ministry of God's mercy in the ministry of God's justice and we've actually got to the Scriptures that go with each of those categories, as well as examples on our website.

If you want to check that out its moneywise.org just click on the giving worksheet but there's no reason why you can't give to other things that are doing other types of good either in your community. Having a social impact, but I would just say pray through it and see where God directs you and then give generously like to thank you Rob try to get our phone number if you just tuning in and get like to call it dial 800-525-7000. Anything financial is fair game today. Let's begin by going to Cleveland Ohio good friends at W CRF up there and Diane what's on your mind. All I love you guys make a lot of great good knowledge and understanding from my buyer in our early 70s and will probably be moving out of our home that we let Jennifer 40 years. I don't know and I'm right your church that we don't were not in a move right away, but should we picked up our house in order to sell it at that point really worth to read electric can. Not yes, well, anyway, another dime because I like the fact that your thinking that way because that's what you should be approaching it.

Not every everything you could do to your home is actually worth doing if you're preparing to sell it because remember, you wouldn't be doing these things simply because you want to enjoy them. You would be doing them to maximize the value of the sale of the property up so the starting point, I think, would be to get a professional realtor in there who could give you some advice as you even prepared to sell on what should be done and what shouldn't just generally speaking, that you want to look at things like adding a fresh coat of paint to sell your home, especially if you have some rooms with loud colors, perhaps update your front door curb appeal is big.bathroom remodels, no matter how small our effective decluttering your home is always helpful to attract buyers making it more energy efficient is a good thing. And then looking at flooring and landscaping options. Those of the things that are going to give you the best bang for your buck.

I will launch into something major like a kitchen redo remodel because they're so expensive just knocking to get the money back checking with the realtor who specializes in your neighborhood look for the signs and I have them weigh on this call. Thank you very much loud colors is somewhat subjective. No investing is more than just returns.

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Learn more by calling 800-791-6225 or online at CH ministries.more communications major reason you may know that you are loved by family, friends, by God, but do you really Dr. Gary Chapman to whites. No love five truths about God and how God uses it to communicate with how God is intimately involved in unexpected purchase, 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. Master your money a step-by-step plan for experiencing financial contentment. Learn how to save, 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.org John Scott, Senate majority leader Mitch McConnell is calling for in his words, every legal boat be counted resident properties and concerned about election officials in Philadelphia accepting mail-in ballots without the proper postmark even duplicating some ballots accounting continuing in four key battleground states in Georgia, Pennsylvania, and about a Democrat Joe Biden has pulled into the lead, but resident processes not giving up the legal battle. If you're in South Florida.

Be alert forecasters said the storm called ETA is back over the Caribbean work is expected to strengthen into a tropical storm. Once again, it's expected to bring soaking rains, high winds and heavy surf to Florida by early next week on Wall Street stocks finishing mix.

The Dow fell 66.

The NASDAQ game for the S&P 500 dropped one point Mrs. SRN use back to moneywise where we remember that God is all that great starting point and if we can help you today with the financial situation you might be wondering about dealing with. Maybe it has to do with buying a home or a car or maybe giving a child an allowance or getting them through college. Let's talk about those things. 800-525-7000 Indianapolis and Daniel. What's on your mind's or my call happy to walk in our debt free and we are both a couple years away from retirement age.

I plan on working a little beyond that, because we don't have a large nest egg. So my question is is there one resource or scar source to go to for short-term retirement advice yeah Daniel your specifically asking how to prepare for the financial side are you also wanting to think about and consider the nonfinancial side of navigating that season of life will what specifically are you trying to get what we looked at different resources such as the swappers others like that.

There's just too much information out there and it's kind of overwhelming financial site. Sure sure you'll have a financial advisor, Daniel a few years ago we approached one concerned about market conditions wanted to lower our risk and didn't know anything and FOUND OUT LATER WHAT HE SOLD WAS AN ANNUITY. I DID CONTACT THE CK, A RECENTLY VERY VERY POLITE AND HELPFUL, BUT HE COULD NOT ANSWER THE QUESTION ANY TOLD US BASICALLY THE AMOUNT WE HAD WAS REALLY BELOW IS ENTRY-LEVEL OKAY AND KEEP IN MIND WITH US.

THE CK DESIGNATION GATHERS ALL TYPES OF BUSINESS MODELS BEHIND THAT'S WHEN SOMEONE EARNS THE DESIGNATION IN SOME CASES THEY SPECIALIZE IN HER WORKING WITH HIGH NET WORTH OTHERS WORK WITH MASS AFFLUENT OTHERS YOU KNOW HAVE A MUCH LOWER THRESHOLD SO IT'S IT'S REALLY GONNA RUN THE GAMUT, SO I'D ENCOURAGE YOU, PERHAPS, TO REACH OUT TO A COUPLE OF OTHERS IN INDIANAPOLIS TO FIND SOMEONE WHO PERHAPS COULD WORK WITH YOU GET YOUR ASSET LEVEL, BUT I THINK THE BOTTOM LINE IS YOUR RIGHT YET THERE'S OFTEN A GAP OF OF INFORMATION OUT THERE AS TO PREPARE THE CONSIDERATIONS YOU NEED TO BE REALLY FOCUSED ON RIGHT NOW ARE WHAT IS GOING TO TAKE TO FUND YOUR LIFESTYLE IN THAT SEASON OF LIFE YOU WHEN YOU ARE FULLY RETIRED, EITHER BECAUSE YOU STOP WORKING BECAUSE YOU JUST CAN'T MANAGE A FULL-TIME SCHEDULING LONGER, OR GOD REDIRECT YOU TO SOMETHING ELSE.

WHAT IS YOUR EXPENSE IS GOING TO LOOK LIKE. WHAT ARE YOUR EXPENSES GOING TO LOOK LIKE. I'M DELIGHTED TO HEAR THAT YOUR DEBT FREE. OBVIOUSLY, WE WANT YOU TO APPROACH THE SEASON OF LIGHT IN THAT POSITION BECAUSE THAT'S GOING TO KEEP YOUR EXPENSES AS LOW AS POSSIBLE, BUT HAVING AN ACCURATE PICTURE OF WHAT THAT BUDGET WILL LOOK LIKE IS REALLY THE STARTING POINT BECAUSE THEN WE NEED TO BACK INTO WHAT ARE THE ASSETS NEEDED TO SUPPORT THAT WHEN YOU CONSIDER SOCIAL SECURITY PERHAPS FOR YOU AND YOUR WIFE YOU LOOK AT THE VARIOUS RETIREMENT ASSETS THAT YOU BUILT UP ANY ANNUITIES THAT ARE AVAILABLE THAT COULD BE CONVERTED TO AN INCOME STREAM OR PENSION AND THEN YOU WOULD WANT TO LOOK AT TO PERHAPS A RULE OF THUMB SAYING FOR THOSE RETIREMENT ASSETS WHERE YOU KNOW YOU'VE ACCUMULATED SOME WEALTH LIKE A 401(K) OR AN IRA, YOU PROBABLY WANT TO USE EITHER FOUR OR 5% AS THE PERCENT THAT YOU WOULD DRAW OUT OF THAT EVERY YEAR TO ADD TO OTHER GUARANTEED INCOME SOURCES LIKE RETIREMENT AND LOOK AT HOW THAT WOULD RELATE TO THE BUDGET THAT YOU HAVE THAT'S GOING TO BE JUST A STARTING POINT TO SAY. ARE WE ON TRACK ARE WE AHEAD OR PERHAPS ARE WE BEHIND AND OBVIOUSLY YOUR ABILITY TO CONTINUE TO WORK TO BUILD THOSE ASSETS. IF THAT'S NOT GOING TO THROW OFF THE KIND OF INCOME YOU NEED THAT WOULD COVER THE FULL EXPENSES THAT YOU PLAN TO HAVE YELLED CONTINUING TO WORK IS GOING TO GIVE YOU A CHANCE TO SEE THAT CONTINUE TO RISE. SO I THINK THAT'S KIND OF THE STARTING POINT, BUT THE BENEFIT OF HAVING A FINANCIAL ADVISOR EITHER TO DO A RETIREMENT PLAN SEPARATE FROM INVESTMENT MANAGEMENT OR TO HAVE SOMEONE WHO ALSO WILL MANAGE THESE ASSETS WHEN YOU REACH THAT POINT I THINK IS REALLY KEY DANIEL BECAUSE THAT FINANCIAL PROFESSIONAL CAN HELP YOU LOOK AT NOT ONLY YOUR INCOME NEEDS AND HOW YOU WOULD CONVERT RETIREMENT SAVINGS TO INCOME, BUT ALSO WHAT OTHER CONSIDERATIONS DO YOU NEED TO LOOK AT LONG-TERM CARE INSURANCE, WILL THAT FIT IN THE BUDGET. YOU KNOW WHAT OTHER CONSIDERATIONS DO YOU NEED TO TO LOOK AT IN TERMS OF OF RISK AND INSURANCE AND SO FORTH.

IN THAT TYPE OF PLANNING. I THINK WILL GO A LONG WAY.

SO ANYWAY HOPEFULLY THAT WILL GIVE YOU SOME FOOD FOR THOUGHT THERE AND I MIGHT CONSIDER YET AGAIN REACHING OUT TO SOME OTHERS TO SEE IF YOU CAN FIND SOMEBODY WHO HAS A BUSINESS MODEL THAT FITS THE INVESTABLE ASSETS THAT YOU HAVE.

THANK YOU DANIEL HOPE THAT HELPS YOU WINNEMUCCA NEVADA JEFF, THANKS FOR HOLDING SIR AND WHAT'S ON YOUR MIND. I APPRECIATE THE HELP. TALK TO YOU GUYS. I HEARD PART OF THIS SOME TIME AGO WHICH CAUSED ME TO THINK I SHOULD GET MORE INFORMATION. THE QUESTION IS, IS THERE A POINT IN YOUR LIFE WHEN YOU JUST NEED TO STOP PAYING FOR LIFE INSURANCE.

WELL, ABSOLUTELY. KEEP IN MIND THE OTHERS LIFE INSURANCE AS PURE INSURANCE AND WE WOULD CALL THAT LEVEL TERM INSURANCE. WERE YOU JUST PAYING FOR PURELY THE MORTALITY EXPENSE FOR THE DEATH BENEFIT THAT YOU HAVE. TO OFFSET A RISK DURING A PERIOD OF TIME WHERE YOU'RE TYPICALLY NOT WORKING AND TRYING TO BUILD ASSETS YIELD PRIOR TO RETIREMENT AND THEN THERE IS INSURANCE THAT IS A DEATH BENEFIT PLUS A SAVINGS VEHICLE WE WOULD TYPICALLY CALL THAT WHOLE LIFE INSURANCE AND IT HAS A FEW OTHER VARIETIES AND NAMES THAT YOU MIGHT HEAR IT REFERRED TO, BUT WHEN IT COMES TO JUST THE NEED FOR A DEATH BENEFIT IN MY VIEW, THE IDEA IS WE CARRY THAT INSURANCE THAT LIFE INSURANCE DURING THE SEASON OF LIFE WHILE WE'RE STILL BUILDING WEALTH AND WHAT THAT'S GOING TO DO IS FOR ANY DEPENDENCE LIKE A SPOUSE OR SMALL CHILDREN OR EVEN A OLDER CHILD WHO STILL DEPENDENT UPON YOU FOR WHATEVER REASON THAT LIFE INSURANCE IS GOING TO PROVIDE NEEDED ASSETS TO THEM UPON YOUR DEATH BECAUSE THEY ARE EITHER TO BE WITHOUT INCOME THAT YOU WERE EARNING OR THEY'RE GOING TO HAVE ADDED BURDENS IN THE WAY OF EXPENSE OR THEY NEED TO PAY OFF DEBT OR COVER A MAJOR NEAR-TERM EXPENSE LIKE A COLLEGE EDUCATION.

THAT'S THE NEED FOR INSURANCE, BUT WHEN WE GET TO THAT SEASON OF LIFE WERE TRANSITIONING OUT OF THE WORKFORCE. GOD IS REDIRECTING US TOWARD OUR NEXT ASSIGNMENT WE BUILT OUR RETIREMENT ASSETS WERE COLLECTING SOCIAL SECURITY AND IF SOMETHING WERE TO HAPPEN TO YOU OR YOUR WIFE THE OTHER PERSON HAS WHAT THEY NEED TO CONTINUE TO PROVIDE FOR THEIR NEEDS AND YOUR CHILDREN. IF YOU HAVE CHILDREN ARE GROWN IT OUT ON THEIR OWN, THEN THERE'S REALLY NOT A NEED TO CARRY LIFE INSURANCE AT THAT POINT, WHICH BY THE WAY, IS GOING TO GET MORE AND MORE EXPENSIVE, AND THAT SEASON OF LIFE.

AND SO WE WOULD DROP IT AND LET IT GO. THIS IDEA THAT WE NEED TO HAVE LIFE INSURANCE THROUGHOUT THE WHOLE OF OUR LIFE I THINK IS A MISCONCEPTION BECAUSE THE WHOLE IDEA IS TO GET TO THE PLACE WHERE WE NO LONGER NEEDED WERE ESSENTIALLY SELF-INSURED. DOES THAT MAKE SENSE THOUGH, JEFF. I APPRECIATE THAT IF I I AM RETIRED, BUT IF I GO BUT I'M GOING BACK TO WORK BUT I GUESS WITH THIS DATA LIKE IT PROBABLY DOESN'T REALLY MAKE THAT MUCH DIFFERENCE AS LONG AS MY WIFE. YOU KNOW SOMETHING HAPPENS TO ME.

I'M GUESSING IT'S NOT GETTING ANY MORE.NET SO FAR TERM. THE TERM INSURANCE POLICY HAVE HAD FOR AS LONG AS I CAN REMEMBER WHEN I THINK THE KEY THERE IS JUST TO SAY YOU KNOW IF SOMETHING WERE TO HAPPEN TO YOU. YOU DIDN'T HAVE THAT INSURANCE WOULD SHE BE ABLE TO PROVIDE FOR HERSELF WITH THE ASSETS THAT YOU HAVE ANY OTHER INCOME SOURCES. IF YES, THEN IT'S REALLY NOT NECESSARY EXPENSE.

IF NOT, THEN CONSIDERING THERE'S STILL TIME OF THE LEVEL TERM. I CONTINUE TO QUESTION THANKS SO MUCH, UNLESS YOU 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 LOVE I.ORG 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.

THE SIGNS OF THE TIME SEEM TO SUGGEST THAT YOU MAY NOT HAVE AN ABUNDANCE OF TIME LEFT TO GET YOUR FRIENDS AND LOVED ONES AND HAVE IT NOW ONCE YOU BEEN AFRAID TO TALK ABOUT SALVATION. THINK ABOUT IT THIS WAY IF YOU KNEW THE LORD IS RETURNING TOMORROW YOU STILL HESITATE WHEN YOU STILL BE WORRIED ABOUT OFFENDING YOUR FRIENDS AND LOVED ONES OF YOU KNEW THERE ONE DAY AWAY FROM BEING LOST FOR ETERNITY BEFRIENDING HIS WEALTH.

WELL, WE MAY BE YEARS OF THE RETURN OF CHRIST, BUT IT COULD ALSO HAPPEN TOMORROW. AND WHY WOULD YOU GAMBLE WITH YOUR FRIENDS AND LOVERS ETERNITY, VETTING THEIR ATTORNEY ARE HAVING LATER RATHER THAN SOONER. THIS IS YOUR WAKE-UP CALL.

THERE IS NOTHING MORE EXCITING THAN KNOWING GOD IS USING YOU TO MOVE PEOPLE CLOSER TO JOIN IS NOT AMERICA. SEVERAL FIREFIGHTERS DIED WITH A SMALL BRUSHFIRE WARD OUT OF CONTROL. THEY TRIED TO ESCAPE BY HEADING FOR A NEARBY ROAD, BUT IT TURNED OUT TO BE A DEAD END. MANY PEOPLE MAKE THE SAME KIND OF MISTAKE WHEN IT COMES TO THEIR SPIRITUAL DESTINY.

THAT'S BECAUSE MOST PEOPLE ARE COUNTING ON THE RELIGION OR SPIRITUALITY TO MAKE THINGS RIGHT WITH GOD.

THE BIBLE SAYS THERE IS A WAY THAT SEEMS RIGHT IN THE END. WHATEVER WORD YOU WANT IS GOD'S WILL MATTER HOW LIGHT PRICE TO BE PAID IS YOU AND I CAN SERVE HIJACKING OUR LIVES. GOD JESUS GAVE HIMSELF A RANSOM TOO MUCH TO THE CROSS TO PAY THAT PRICE TO THE SIN LEARN MORE, CALL 88 JESUS: 888 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 LIVE TO WORK MONEYWISE AND I LIKE TO SAY IS WHERE YOUR CHECKBOOK AND LIFE AND THE LIVES OF THOSE AROUND YOU LIKE TO SEE YOUR CHECKBOOK AND GOD'S GOT A LITTLE KIND OF VIBE TOOL. IT'S IT'S IT'S CREATIVE, I THINK, BUT IT DOESN'T WORK IN YOUR CASE. RUCKUS YOU DON'T HAVE A CHECKBOOK TO KNOW.

I DON'T, I COULD PROBABLY FIND ONE IN A DRAWER SOMEWHERE AT HOME.

I WOULD SUSPECT THAT I MEAN A CHECKBOOK, A LEATHER BOUND BOOK WITH CHECKS GEESE FLYING IN THE BACKGROUND RIGHT TOASTED NO NO NO I NEVER HAD ANY DECENT MATRIX EITHER. I BET THAT WOULD BE BEAUTIFUL YOU SUGGESTING I'M OLD SCHOOL. I DIDN'T SAY THAT YOU DID WANT ME TO SAY THIS WEST PALM BEACH, FLORIDA. HOW DO YOU LIKE THAT, REBECCA. THANKS SO MUCH FOR HOLDING AND WHAT YOUR QUESTION WILL VARY. I RAN TO THE POINT OF IT, MUCH INCLUDING SHARON, THANK YOU LENA LIKE THAT WE COULD POP ME BY 10% DOWN MONEY FOR CLOSING, ABOUT TWO MONTHS IN OUR EMERGENCY FIND THAT WE ARE NOT SURE WHAT TO DO ON THE HOUSING PRICE HAVE GONE UP AN EIGHT MONTH NEXTEL HERE 3% BY Not QUITE SURE WHAT YOU YEAH WELL I CAN CERTAINLY APPRECIATE WHERE YOU'RE COMING FROM BECAUSE I CAN IMAGINE IT'S FRUSTRATING TO PAY ALL THAT MONEY TOWARD RENT EVERY MONTH AND KNOW THAT YOU'RE NOT BUILDING ANY EQUITY. ALTHOUGH I WILL SAY THAT NOT ONLY DO WE NOT WANT TO PUT OURSELVES IN A POSITION WHERE WE GET OVEREXTENDED BY TAKING ON A HUGE MORTGAGE THAT WERE NOT EQUIPPED TO PAY OR WE'VE NOT SAVED ENOUGH. I ALSO WANT YOU TO CONSIDER JUST THE ADDED EXPENSE THAT GOES WITH HOMEOWNERSHIP, YOU KNOW, WE JUST HAD A TROPICAL STORM COME THROUGH ATLANTA HERE AND YOU KNOW I GOT FACING ALL KINDS OF EXPENSES RELATED TO THE CLEANUP IN THE YEAR OF THE DAMAGE THAT YOU HAVE SO MANY EXPERIENCED IN THIS AREA AND IN VARIOUS PARTS OF THE COUNTRY PEOPLE ARE DEALING WITH OTHER ISSUES, HURRICANES AND FIRES IN ALL OF THOSE THINGS THAT WE HAVE INSURANCE FOR THAT BUT THAT DOESN'T MEAN THAT THERE IS NOT EXPENSE WITH DEDUCTIBLES AND JUST OTHER MAINTENANCE AND UPKEEP ITEMS THAT WE HAVE A HOME THAT PERHAPS WE DON'T ALWAYS HAVE WHEN WERE RENTING SO WE GOTTA COUNT THE COST, BOTH IN TERMS OF ARE WE FINANCIALLY READY TO TAKE ON A MAJOR OBLIGATION LIKE A HOME MORTGAGE AND I THINK WE WOULD MEASURE THAT BY THE DOWN PAYMENT AS WELL AS MAKING SURE THAT THE RESULTING PAYMENT FROM WHATEVER MORTGAGE YOU TAKE ON FITS WITHIN THE BUDGET THAT WE COULD TALK ABOUT SOME GUIDELINES ON THAT IN THE SECOND. SO THERE'S THE FINANCIAL READINESS PART IN TERMS OF THE PURCHASE AND THEN SECONDLY WOULD BE COUNTING THE COST TO MAKE SURE YOU'RE FACTORING IN THE OTHER COSTS THAT JUST COME ALONG WITH HOMEOWNERSHIP AND YOU'RE NOT DISCOUNTING THE REALITY OF THOSE THAT LET'S GO BACK TO THE FINANCIAL READINESS FOR SECOND, WE WOULD TYPICALLY SAY I'D LIKE FOR YOU TO HAVE 20% DOWN INSTEAD OF 10.

WHY IS THAT WELL. THIS CAN PUT YOU IN A POSITION WHERE YOU GOT A GOOD BIT EQUITY STARTING OUT NUMBER ONE WE HAVE HAD A BIG RUN-UP IN HOUSING PRICES. SO IF WE WERE TO HAVE A DEBIT SKIN TO KEEP YOU OUT OF A POSITION WHERE YOU MIGHT BE UPSIDE DOWN AND THEREFORE UNABLE TO SELL THE HOME NUMBER TWO IT'S GOING TO PREVENT YOU FROM HAVING TO PAY COSTLY PRIVATE MORTGAGE INSURANCE, WHICH DOES NOTHING FOR YOU.

IT'S ONLY FOR THE BENEFIT OF THE LENDER AND NUMBER THREE IT'S GOOD TO KEEP THAT MORTGAGE DOWN LITTLE BIT LOWER, WHICH IS GOOD TO HELP WITH THE RESULTING MONTHLY PAYMENT NOW, DOES THAT MEAN I WOULD NEVER BUY WITH A 10% DOWN PAYMENT. I WOULD JUST SAID PREFERRED TO BE 20 WHICH WOULD MEAN YOU HAVE TO DELAY THIS PURCHASE UNTIL YOU CONTINUE TO SAY, BUT AT THE END OF THE DAY. THAT'S UP TO YOU IN TERMS OF THE PAYMENT.

I WOULD JUST GO BACK TO THAT THE BUDGET YOU'RE ALREADY PAYING THE MORTGAGE OR RENT PAYMENT. I ASSUME YOU'VE CALCULATED WITH THE EQUIVALENT MORTGAGE PAYMENT WOULD BE AS A RULE OF THUMB I'D LIKE THAT TO BE 25% OR LESS OF YOUR TAKE-HOME PAY FOR THE PRINCIPAL, INTEREST, TAXES AND INSURANCE PAYMENT SO GIVEN ALL OF THOSE CONSIDERATIONS. REBECCA TELL ME YOUR THOUGHTS ON HOW YOUR PROCESSING THIS AND HOW LONG IT COULD BE YOU KNOW I LIE.

MAYBE WE CAN SAVE THAT MONEY YOU KNOW YOU 23 $2400 A MONTH IN RENT. I REALLY EVEN IF WE BOUGHT MONEY LATELY ANY LIKE TO DELAY TWICE MONTHLY HOMEY SO I'M NOT SURE WHAT I'M, WELL, WE MADE THE MARKET. YES, YOU KNOW MAKES SENSE. I THINK I LIKE WHAT I'M HEARING, IN THE SENSE THAT YOU'RE STILL GOING TO HAVE YOUR EMERGENCY SAVINGS, PERHAPS AT THE VERY LEAST CONTINUE TO SAVE SUCH THAT YOU COULD PUT DOWN THAT FULL 10% AND STILL HAVE AT LEAST THREE MONTHS EXPENSES AND RESERVES. I LIKE THE FACT THAT YOU HAVE A COUPLE HUNDRED A MONTH THAT YOU COULD PUT TOWARD HOME MAINTENANCE USUALLY WOULD SAY THINK IN TERMS OF 1% A YEAR OF THE HOME'S VALUE. SO IF IT WAS $200,000 HOME YOU WANT HAVE AT LEAST 2000 A YEAR GOING INTO RESERVES FOR HOME MAINTENANCE.

SPECIFICALLY, IT SOUNDS LIKE YOU PROBABLY CAN PULL THAT OFF SO JUST KNOW THAT YOU'RE PERHAPS GOING IN A LITTLE PREMATURE, BUT I REALIZE YOU LIVE IN A VERY EXPENSIVE PART OF THE COUNTRY THERE IN SOUTH FLORIDA REAL ESTATE IS VERY HIGH NOT PROBABLY GETTING ANY CHEAPER ANYTIME SOON AND SO AS LONG AS YOU COUNT THE COST AND REALIZE WHAT THE PMI'S GOOD AND AND WHAT YOU'RE GOING TO NEED TO DO IN TERMS OF HOME MAINTENANCE AND YOU ACTUALLY DO IT, THEN I THINK YOU KNOW IT'S IT'S SOMETHING YOU AND YOUR HUSBAND NEED TO PRAYERFULLY CONSIDER AND IF YOU OVER DECIDE YOU KNOW WHAT WE WANT TO GO AHEAD EVEN THOUGH WERE GOING IN WITH 10% DOWN INSTEAD OF 20. I WOULD SAY YOU KNOW II CAN'T FIND ANYTHING TERRIBLY WRONG WITH THAT AS LONG AS YOU GO IN WITH YOUR EYES WIDE OPEN AND ROB WE CAN SYMPATHIZE WITH REBECCA AND ANYONE ELSE WHO LIVES IN PARTICULARLY EXPENSIVE AREAS OF THE COUNTRY. WEST PALM BEACH WOULD BE ONE LOS ANGELES, ANOTHER SAN FRANCISCO.

ANOTHER PARTS OF THE LONG ISLAND NEW YORK CITY BUT THE MATH DOESN'T CHANGE THE BASIC MATH OF HAVING ENOUGH IN SAVINGS HAVING ENOUGH DOWN PAYMENT JUST IN CASE IT DOESN'T MEAN THAT GOD WILL BLESS OTHER CHOICES AND DECISIONS, BUT HAVING DONE WHAT WERE DOING HERE FOR THE LAST 35 YEARS WE WE WE SEE A TREND AND WE ALSO KNOW WHAT GOD'S WORD SAYS ABOUT TAKING ON TOO MUCH DEBT WHAT IT'S EXACTLY RIGHT NOW IS NOTHING MAGICAL ABOUT 20% VERSUS 10.

OTHER THAN THE ADDED PMI COST AND JUST HAVING A LITTLE BIT MORE CUSHION SO I WOULD SAY AGAIN, IF YOU'VE GONE AND YOU'VE LOOKED AT THE NUMBERS YOU CAREFULLY CONSIDERED YOUR BUDGET.

YOU LOOK AT ALL OF THESE FACTORS YOU SAY WE JUST CAN'T STOMACH 2300 A MONTH TO RENT ANY LONGER. I GET THAT.

AND I WOULD JUST SAY MAKE SURE YOU PRAY THROUGH IT AND AS ALWAYS YOU AND YOUR HUSBAND ARE IN COMPLETE AGREEMENT THEN I THINK YOU PROCEED, WE HAVE AN OPEN LINE OR TWO FOR A QUICK CALL 800-525-7000. IF THAT DESCRIBES YOUR QUESTION CALL RIGHT NOW 800-525-7000 SUNRISE, FLORIDA DINEEN AND HOW CAN WE HELP YOU ALL THOUGH OFFERED A RETIREMENT EARLY RETIREMENT AND RETIREMENT WILL PAY BASE SALARY FOR ABOUT 14 LONG AND THEY WILL LOCK OKAY FOR HELP IN TURN DELETE FIVE DOLLARS A MONTH, AND THOUGH WE WERE WONDERING IF WE WERE PLANNING. ANYWAY, I'M QUITE TIME IN THE NECK. YOU HEAR AND WHAT WE WOULD LIKE TO DO IT HOME AND THAT LITTLE AREA WHERE IT WILL BE ELECTRIC AND THAT WE WERE WONDERING IF THAT IS A GOOD DEAL IN RELATION TO THE LATE UNTIL HE BECAME YOU KNOW I THINK THIS IS SOMETHING YOU JUST NEED TO LOOK AT, WHAT YOUR PLANS ARE MOVING FORWARD AND I APPRECIATE WHAT YOU'VE EVEN DESCRIBED ABOUT YOUR PLANS TO MOVE AND I THINK CLEARLY, THIS IS A GREAT OPPORTUNITY FOR YOU GIVEN THAT YOU HAVE THESE 14 MONTHS YOU ARE ALREADY PLANNING ON PERHAPS THINKING ABOUT A CHANGE GOD'S REDIRECTING YOU SOMEWHERE ELSE. SO GIVEN THAT IT SOUNDS LIKE IT COULD BE A REAL BLESSING. I THINK YOU JUST WANT TO BEYOND THOSE 14 MONTHS AND THINK AT THAT POINT ARE WE GOING TO HAVE THE RETIREMENT ASSETS PLUS SOCIAL SECURITY WHEN THAT TIME COMES TO COVER OUR EXPENSES OR IS HE GOING TO NEED TO GO BACK TO WORK AND ARE YOU GOING TO REGRET GIVING THIS UP OR IS THAT IN LINE WITH WHEN YOU WOULD HAVE WANTED TO MOVE ANYWAY AND SO THEN THIS IS JUST A REAL BENEFIT THAT YOU GET THESE 14 MONTHS WERE HE CAN EITHER GO TO WORK SOMEWHERE ELSE OR USE THAT JUST ALLOW GOD TO PUT SOME MARGIN IN HIS LIFE TO REDIRECT HIM TO SOME OTHER THINGS SO I THINK WE GOT A LOOK BOTH AT THE FINANCIAL SIDE IN TERMS OF WHAT WE CAN DO BEYOND THIS EARLY RETIREMENT. AND THE NONFINANCIAL SIDE. WHAT IS IT THAT GOD IS CALLING YOU ALL TO NOW AND IN THE FUTURE, BOTH IN TERMS OF TIME AND LOCATION BUT I DON'T SEE ANYTHING WRONG WITH THIS DINEEN AS LONG AS YOU REALLY ARE THINKING THROUGH WHAT HAPPENS FINANCIALLY WHEN YOU GET BEYOND THESE 14 MONTHS DURATION AND LINK YOU LEADING IN ANOTHER DIRECTION WITHOUT CONFIRMATION SOMEWHAT APPRECIATE YOU LISTENING AND CALLING. BLESS THE LORD GIVE YOU SOME WISDOM HERE AS YOU MAKE THIS DECISION. WE WILL INDEED. THANK YOU FOR CALLING IN. WE HAVE LIKE 40 SECONDS HERE. SO WHAT YOU QUESTION GARY GOT MY BENEFACTOR WILL NOT BE GRANDFATHERED IN AND GET BENEFIT REGARD. YEAH, YOU KNOW, WE TYPICALLY WOULD NOT SEE A REDUCTION IN SOCIAL SECURITY BENEFITS. EVEN WITH DEFLATION FROM ONE YEAR TO THE NEXT. SO OBVIOUSLY, ANY POLICYMAKER CAN MAKE ANY DECISION AS LONG AS THEY HAVE ENOUGH SUPPORT FOR IT, BUT HARRY AND I WOULDN'T BE TERRIBLY CONCERNED ABOUT THE SCENARIO YOU'RE DESCRIBING. I THINK THE CHANGE IS WORKING TO SEE DOWN THE ROAD ARE GOING TO BE MUCH FURTHER DOWN THE ROAD IN TERMS OF REDUCING ENTITLEMENTS TO BE ABLE TO SHORE UP THE SOCIAL SECURITY PROGRAM THAT YOU THOUGHT I WOULDN'T WORRY TOO MUCH ABOUT THIS CONCERN, BUT THANK YOU FOR CALLING IN TODAY AROUND LAST TIME STEVE MOORE MONEYWISE LIVE IS A PARTNERSHIP BETWEEN RADIO AND MONEYWISE ME


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