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Rainy Day Umbrella Insurance

MoneyWise / Rob West and Steve Moore
The Truth Network Radio
November 11, 2020 7:03 am

Rainy Day Umbrella Insurance

MoneyWise / Rob West and Steve Moore

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November 11, 2020 7:03 am

Do you know if you need an umbrella insurance policy? If not, it might be a good idea to find out. Many homeowners fail to take advantage of this coverage that protects their assets from catastrophic lawsuits. On the next MoneyWise Live, hosts Rob West and Steve Moore have the info you need on this overlooked form of insurance. Rainy-day umbrella insurance on the next MoneyWise Live at 4pm Eastern/3pm Central on Moody Radio. 

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They say when it rains it pours that spine and the lawn needs watering but not so much of someone's could you use an umbrella insurance policy.

Many homeowners fail to take advantage of coverage that protects their assets from catastrophic lawsuits. Today financial planner and teacher Rob West is the info you need on this often overlooked form of insurance that fits your calls on anything financial that 800-525-7000 800-525-7000 times more rainy day umbrella insurance that smacks moneywise. Not that we often hear the words million-dollar associated with umbrella insurance policies now. Is this something that everyone needs and just what is an umbrella policy steeple as the term implies an umbrella policy gives you extra liability coverage for you and your family beyond what you have with your homeowners and auto insurance policies and does everyone need it. Well, maybe not, but more people than you might expect. If you been working hard to build up assets in your retirement fund and the equity in your home and so forth. It's possible you could reach the million dollar mark someday. Even if you're not there yet or perhaps anywhere close and a civil judgment could be against future earnings. So that's something to consider as well. But aren't those assets protected from lawsuits. Well it's a great question. A lot of folks might think they are. But there are limitations on many states. Your home is protected from lawsuits and creditors, but not all of, for example, New Jersey and Pennsylvania have no homestead protection, also most employer-sponsored retirement plans, like a 401(k) have immunity from lawsuits and creditors under the employee retirement income security act what's known as Orissa but non-ERISA plans like a traditional or Roth IRA don't have the same level of protection so those are both reasons to consider an umbrella policy.

So if you don't have a million-dollar policy that doesn't preclude people from suing you $4 million they could get it in one of several ways. That's right, you how exactly does one of these umbrella policies work well or give you an example so say it's your turn to carpool the kids soccer practice run their excited and making a racket in the back of your minivan and you get distracted, you don't notice the traffic is stopped at a red light ahead. And you, we're in the car in front of you.

Well, that in my example here causes a chain reaction. The two cars in front slam into the cars in front of them and several of the drivers and passengers complained whiplash.

Well, you can see where this is going. You have half $1 million worth of coverage with your auto insurance policy, but that runs out quickly as first the repair bills reach 50,000 each, then medical bills at up to 500,000. And to top it off one of the passengers who was in the car ahead of you is now suing for emotional trauma from the accident. So you're on the hook for the 50,000 auto insurance won't cover, plus any judgment coming from the lawsuit and you probably don't have that much in your emergency fund. However, with an umbrella policy it's coverage kicks in and pays off not only the 50,000 short. But any judgment, plus attorney imports fees up to $1 million in the case of this million-dollar. In this scenario is quite possible.

I think it probably happens somewhere every day. Yes, and that example didn't take into account worse things that could happen like a permanent physical damage or even death.

The cost in that case could easily force someone into bankruptcy after their assets are exhausted. But let me give you a few more examples of where that's actually happened in Florida teenager drove on ATV. That's an all-terrain vehicle onto a neighbor's property and had a terrible accident. The tragically took his life. You think the homeowner wouldn't be liable, since the team was unsupervised and on the property without permission, but the court didn't see it that way and awarded the grieving parents $20 million in another case, Steve, a toddler suffered a spinal cord injury in a traffic accident. The family sued the driver and was awarded 29 million, and finally in California. The driver who caused a multicar accident left her 21-year-old in a coma for a month, was sued in the court awarded the injury or injured person about a $50 million.

So the sky catastrophic judgments do happen. Well, I would imagine that a policy that covers these kinds of judgments must be awfully expensive. Well, you would think that would be the case but actually umbrella policies are quite reasonable for up to $1 million in coverage are probably paying $150-$300. You might find it cheaper if you have an independent insurance agent to shop around and there's no deductible within umbrella insurance policy you pay.

Obviously the deductible from your homeowners or auto insurance, but the umbrella's policy kicks in and pays all okay will come back and chat some more about this. You're listening to moneywise live. Many people are experiencing financial challenges such as credit card debt downsizing that in jobs and savings. In fact, more than half of all divorces are the result of financial pressures at home, but there's hope in your money counts biblical financial expert Howard date shows that the Bible is a veritable managing your finances will discover the profound if it has a relationship with God, your money counts is available when you click the start button moneywise live.org you have money in a retirement account for just a general investing. You know, the stock market can sometimes be possible to enjoy both profit and peace of mind and investing no matter what's happening. You can see a short video webinar on that topic. Sound mind investing.org since 1990 sound mind investing in stocks offer financial wisdom for living well sound mind investing thought a large you and I have access to more information is exponentially truer today than it was in Billy Graham for Senate in 1993 we have access to more more information faster and faster right people look at our world with all the crime and all the headlines screaming at us about feelings and receive them all so much about entertainment.

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It's moneywise live more and chat with you today. Anything financial that you're wondering about any situation you may be having a difficult as well give us a call. Let's talk about it and of course we'll see what the Bible has to say about it as well. In fact, that's where we start our phone number you know I was thinking rather than giving the regular number today. It'd be fun if I just gave my cell number and we and we might all in favor of that thousands acknowledging that right now I hear is six and here's the real number the real number 800-525-7000. There's a person. There are real person who wants to talk with you so call right now 800-525-7000 actually did give your cell phone number by mistake. That's the day I listening that day.

You know had the benefit of being able to get Steve more so number yet, you know three people called me, but they all wanted me to come to an Amway meeting this that had already signed up for Emily inside nothing against Amway, but I just wasn't what I had in that room on my calendar that month but but but we have room for you today 802 five 7000. So give us a call and let's chat going back for just a second to our umbrella insurance policy you pointed out Rob that they're not really that expensive and I'm not quite sure why it is there not that expensive I were talking about $1 million year that they might have to pay out. So while you may be charged in mind it's it's for a catastrophic event which for the most most folks it they don't ever have to use a policy like that, but it's when you have to use it even though it's very rare. But when you have to use it and you don't have it, that's when you will of course be disappointed that you didn't take the opportunity to put in umbrella C policy in place so if you are in a position where you need something like this again very cost-effective and I think just one way we can be a good steward of God's money. Okay, there you have it. 800-525-7000 others. Another way you could talk to Rob with a question that you might have. And that's to send us a brief email that address is questions@moneywise.org questions@moneywise.org and Rob, here's one from Janet. She says hello, Robin, Steve, I've been supporting a student in Uganda monthly for several years. I had a baby recently and I'm staying home with him and no longer working. My husband's income provides, but the money is tight and wondering if the $36 sponsorship should be continued or canceled.

Even though I really hate to do it well, Janet. I also appreciate that question you. I think when it comes to our giving decisions and opportunities are clearly we should be givers right we should be taking a portion of what God and trust to us and redirecting it into God's kingdom wedding beginning with our local church and then beyond that to those in our communities and even to the other uttermost parts of the world as we reflect God's heart to our giving by giving to those that are really need situation, whether it's a ministry God's justice of the ministry of God's mercy to someone like you're talking about is living in poverty in 1/3 world country and these are incredible opportunities for us to take a portion of what we been entrusted and redirect them that way. So I would just say look for an opportunity to continue what is obviously already on your heart. Perhaps there's another place you could cut back and I would say really dial into that spending plan you know it's going to come down to taking a hard look at what is my income and what are my expenses. What's going out not only the things I get a bill for, but the discretionary spending that kind of slipped through my fingers.

If I'm not careful tracking that for 60 days and then with intentionality, making decisions to cut back in one or more areas I think will allow you to free up that $36 a month to continue that sponsorship.

If you haven't downloaded our apps that can help you do just that. Just go to the app store you use type in moneywise biblical financing you'll see it there. That's can help you put it all in one place. Develop a plan and then track the flow of money using our digital envelope system.

I think that could be a great help to okay and again if you have a brief question you like to hear Rob answer on the air of the address is questions@moneywise.org let's go to our phones 800-525-7000 Wesley Chapel, Florida, and enjoy well what you question today for Rob.

Where would I find out more information about currently I have Geico insurance for my auto policy secondary source that I will call to find out about their current yeah you know what I would look for would be an independent insurance agent, Joel, who can really help you shop around and find the right policy for you.

There a number of them out there.

You could connect with a certified kingdom advisor there in Florida in the insurance space if there's not one you could connect with any CK and asked for a referral to an end independent insurance agent and just about to any one of them could help you shop for an umbrella policy that fits your situation in terms of the coverage and also what fits into your budget, which is really critical so defined to CK there in Wesley Chapel I would go to our website moneywise live.org click find ACK and then again if you can't find one in the insurance area specifically in your area just asked for referral Sir, we appreciate your call today.

Thank you very much. Chicago your next and Sally what's on your mind, myself.

I am calling out more about our one question that I have when you mentioned earlier that one you know why a lawyer can help you while I million dollars coverage for your property. You mentioned also that people that were million million million dollars.

In cases like that. Yeah it's a great question Sally. Here's what I would say first of all, which it recognizes were just using the million dollars as a starting point. You certainly could get more coverage than that.

And as I mentioned it's it's very cost-effective to add much more coverage. I think the second thing is keep in mind one of the benefits to having an umbrella policy like this is that the company will pay for your representation in court, so by having an attorney that's paid for out of a policy like this representing you is perhaps going to help keep that number down and at the end of the day. The award is no is only as good as your ability to pay it, and if your resources and assets are exhausted.

Then nobodies can get paid. Anyway, despite the number that's attached to that award. So often representation legal counsel could help to settle for an amount equal to the liability coverage that's available through the umbrella policy which they know they can get paid on anything beyond that your assets would be exhausted. And they're probably not going to collect anything anyway so I think it's all about having competent legal counsel behind you and having a policy like this that could at least provide some financial assistance. Whether that's a liability or medical or property, whenever that might be. We appreciate that Sally, thank you very much your listening to moneywise live with Rob west of Jordan. We know you're out there. Also Phyllis and also George and they all are calling from the state of Florida. So you're all lined up and were heading your way. So please stick around.

Don't go anywhere. I get our phone number 800-525-7000 have a financial question of any kind any sort today for around 805 five 7000.

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I understand your frustration with this so we'll see said a couple of thoughts. One would be you can register at the do not call list.

Now that's going to have some impact. It's not going to completely resolve what you're talking about but if you if you use the Internet, you can go to. Do not call.gov and you can register your name that will. A lot of the unwanted sales calls. That's obviously not going to stop anything related to somebody who's trying to scam you and so get what you're describing. Was somebody calling senior Social Security was involved in a crime or used fraudulently and they're trying to collect your information that's obviously someone who's involved in the scam. Those are known scams. You obviously don't ever want to give your personal information over the telephone.

The IRS will never call you without first contacting you by mail and if anybody tells you they need your information, I would hang up the phone. Obviously those folks are not going to abide by the do not call Registry that's going to continue out one of the other things you can do and and there's a big trend in this right now where folks are moving away from home phones and moving to cell phones or mobile phones as their primary phone number, primarily because the modern smart phones these days will identify those spam calls and telemarketer calls and you don't ever have to take them. You know I get calls at least a couple times a day to come up on my phone and say spam call or telemarketer and I just immediately declined it and you I think you were seeing advances there and some of the technology is available at home as well.

So you may want to contact your your phone carrier. Even your home phone carrier, and just say what is available that might alert me to spam or telemarketing phone call so that I can avoid them altogether. And I think you'll find some benefit between those two options and what is the number Rob for those who just want to a place of do not call on their on their phone line is remembering there is you can either go to. Do not call.gov, which is the easiest way or if you got a pen you could jot this number down AAA 382-1222.

That's 888-382-1222 and that's where you will register your phone number on the do not call Registry, good Jordan, we wish you the best.

This is a problem that a lots and lots and millions of people have all the time. In spite of these numbers, but I'm told that these numbers in the do not call list do not call.gov do work so it might be worth a try. If you've never done that.

Thank you very much. I will stay in the state of Florida and Phyllis what your question for Rob. Thank you for taking my call. Love your program might going to be starting on for my grandson he can inherit.

I've been told by the lawyer that I have to open a custodial account and then back will be placed in an account for me as to what to do with my main question is, where would be the best way to impact their are currently 13 years old. Yes, very good, Phyllis. Are there any specifications as to whether or not this money has to become his property at the age of majority, or was it paid to you for his benefits. Is there a trustee involved one of the some of the stipulations around this inheritance. Given that he's a minor coming to our ham okay sorry you got a couple of options mean and I would go back to the attorney for some counsel here.

Perhaps I connect with a certified kingdom advisor there in Florida because you want to get this right in terms of how the account is titled because there are implications to the type of account you put it in and then how it's invested. Given the time horizon. Yet this is specifically for college and he's five years out from college. Obviously that's can it really dictates a lot of the investments that are used because you not want to be overly aggressive to make sure this money is available when he needs it and as opposed to being in stocks and what's a couple years down the road from now were in a recession market is down in this portfolio has lost value and now you're having to sell the stocks at a loss. We certainly don't want you to be in that situation so there's a couple of options. One is you could do what's called a custodial of 529 plan 529 is our preferred college savings vehicle. Reason being that as the money grows, it will be tax-free.

Think of it as a Roth IRA. As long as the proceeds are used for qualified educational expenses, and obviously your grandson can be named as the beneficiary of this custodial 529 or you can just open a straight custodial account what's called a you TMA or UGMA uniform transfers to minors act uniform gift to minors act the idea there is that that money can then be invested, but the key thing with a custodial account is that it becomes the child's property at the age of majority, which could be 18 in your state. I'm not sure what it is in Florida but he would have the opportunity use that money however he chooses. At that point you want to go by sports car. In effect he could. So I think you just want to make sure you understand the implications of that, both with the 529 and the custodial 529 and the custodial account that ultimately the child would be in control of those funds and for some children that's fine for others that perhaps like the maturity and to handle a sizable amount of money that could be problematic. So lots of check that out and see if you can get a little bit more information.

If not, you need to open a trust where a trustee could be overseeing the disbursement of those funds for very specific purposes for the benefit of the child Phyllis we wish you the best with that as you manage that money for your son, God bless him as well. We hope between the two of you, you find a great school. Thanks for listening to moneywise live, how should we as Christians think about and testing. What if we could invest our money in a way that aligns with what we believe that Eventide we believe it is possible to love God and love our neighbor in the very practice of investing we design investments for performance and better world so you can invest for the future with a sense of wholeness and purpose. We call this investing that makes the world rejoice. More information is available@investeventide.com Christian healthcare ministries enables believers to 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 hi my name is Hao Hudson, a biblical studies major at the Moody Bible as we remember our nation's veterans. The radio verse of the week. Be strong here you the Lord your God.

You may be radio during the pandemic, spiritual, or midlife crisis. You may be asking what now under deck hosting Moody publishers reading for change podcast in his new book, what now, Moody Bible Institute president Joe will help your next season. Learn how to break free of sting nation. We envision your life story. Don't let your get your copy publishers.com publishers.com. Do you know if you have enough money house.

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Learn how to save, invest, and give wisely, how to create a long-term financial plan and how to get out of debt. Find it all. Master your money by Ron blue available when you click the start button moneywise live Georgia elected officials have announced an audit of presidential election results. Secretary of State Brad reference Berger says his office once the process to begin by the end of the week earlier today president from visiting the tomb of the unknown soldier at Arlington national Cemetery to take part in the annual presidential right. Mr. frump honored veterans in the ceremony that was held during a steady rain and remains a tropical storm as it prepares to start vastly heavily populated.

Tampa Bay region in Florida crashed ashore in the coming hours somewhere to the north along the Gulf of Mexico coast and early rally today on Wall Street lost some steam by the closing bell leaving major indexes mixed. The Dow dropped 23 points. The NASDAQ game 232.

The S&P 500 picked up 27 this is SRN news finances panties dollars. Whatever is in your wallet. If we can help you with that will certainly try 800-525-7000 one carrier walling bills in the wallet that Rob no I do I do carry few bills, many do you really primarily because my kids are always asking over the basketball game and get something to the concession stand and catch a few dollars.

Yeah yeah catch. I was raised that way. My father said don't ever leave the house without a few bucks in your pocket this day.

I always I think that way yeah because he probably didn't think about Apple pay no event that was was born in the 20s so I don't think I was thinking of that if he was. I wish you would've told me I could but I thought it really made a great Fort Lauderdale hello Bill, forgive us for fiddling around here when you're waiting for us. But how can we help you sir all right for taking my call got a early question got right at 74,000 pay off which 1551 that principal and $247 is interest and then 893, escrow and I have very good possibility, blessing, getting a $50,000 gift by the end of the year and I just wonder you know how do they calculate early payoff with that 50,000 you think Cochran or come very close. What are your thoughts yeah understand your question bills so you said the balance on the mortgage today is 74,000 correct okay so obviously if you put 50,000 thousand against it. Tomorrow you'd still owe 24,000 and so you'd have a balance left. Obviously, because you're a little bit further into this term of this mortgage, as you said, if I understood you correctly, you know of your roughly $1800 a month payment before escrow 1550 is going to principal at about 247's going interest in the current month. Is that right okay so obviously you're far enough in you been at this a while with this mortgage, so you've come to tip the scales where later in the term of the mortgage and the vast majority is going to principal West interest, which is why you don't want to refinance it. Like this unless you keep the term equal to where you're at, but I like the idea, assuming you have further priorities and place your living on a balanced budget you're getting. Systematically, you've got an emergency fund in place outside of this 50,000 of 3 to 6 months expenses you're putting money away for the long term and a retirement account. I would recommend 10 to 15%. And if this is over and above that in accelerating this payoff I think is a great idea to give you a lot of peace of mind. It's can save you. Obviously, the interest that you have left and easiest way to calculate that is just asked the mortgage company to run an amortization schedule to tell you how much interest will you be paying from now until payoff and obviously the quicker you can pay off the 74,000 you know you'll avoid a lot of that. But the 50s knocking to do it because you've got to get to where you can fully satisfy the mortgage. Does that make sense or my missing something. That's what I was, you know, if I say 50 grand and say okay well you know we would pull out the property taxes would pull out the property insurance because your clinical paying it off and start a monthly on your own. I was actually hoping that the payoff would be around 50 grand. I got it I hear what you sense well. Couple things there.

Number one is your you're not going to find unless the payment is in arrears and you know you've missed several payments and you got a financial hardship there knocking to be settling with you at a reduced amount like you might see with a credit card that's unsecured because they got collateral and plenty of it that they can use to get their full payment so that's not can happen. But this idea that you may have some extra money in escrow that would be refunded to you is legitimate.

But keep in mind if they're doing their job and what you have in that escrow account is equal to what's going to need to be paid at some point you know in the next year to both property taxes and homeowners insurance is actually what's needed and you've not been saving for that separately.

That money even though it would be refunded to you would only be available temporarily because you need to continue to build that up in your own savings account so you had the money to pay those bills when they come do so. I don't think you can have any extra there, so unfortunately your balances really can be very close to that 24,000 but that's okay, just stay added and as you said you're chipping away at that principal at a good clip.

Here each month that you make that mortgage payment and that 50,000 will get you a long way in that direction. Yeah, Bill, great question.

We wish you the best as you go forward there. Thank you very much. So if you're wondering today about maybe you're giving her your housing or your investing more understanding what the Bible says and teaches about various money principles financial principles give us a call today anything fair game. 800-525-7000 three lines open call now 800-525-7000 Alan in Washington state. Sir what you situation there. Michael yeah I'm going about outnumbering children that we wait for their college funding. One of my son graduated. We boarded and what the loan came to about $35,000 went into Christian ministry immediately after college. So we kind of payment of monies on hold and subsequently married his wife does not see the fact that those monies only need to be repaid and over time through the need to gush about the repayment of those monies gone unresolved, the elephant in the room in our family and I know now what you would be what the biblical recommendations are do we go to. We just move on him financially. It is significant impact my life and I and it now is running until five or six years indicate intermittently. There needs to be resolved. Nothing comes yeah how one man I know this is a difficult situation for you and your wife in the last thing we want is for this to place a strain on the relationship is that should be preeminent. And yet that unite can be very appropriate for you to want your son to do the right thing based on what the intention was what the expectations were that were set out at the very beginning of this I'm assuming that you have cosigned for this loan is that right you're legally responsible.

Okay, so there's no longer a balance, but obviously you are the ones who paid it and was it clear to him.

When this was taken out that this was even though you were helping him by putting your name on it. He was expected to pay back, and he understood that contract got you right now what impact is further right around the corner. This is a really important conversation and will be right back.

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There was a clear expectation at the outset that this was something you were doing, but the expectation was each child would pay back the loan in full. Obviously your son is not doing that is demonstrated is at least until this point, not willing to do it and is being supported by his wife in that feel this is why the Bible is so clear on this Alan that we shouldn't put up security for debts.

Proverbs 2226 and 27 very plain on this and what we find is the Federal Trade Commission backs up what God's word teaches in the principal and that is that 50% of the time when we sign on behalf of someone else. We have to paid in full. If it's going to get paid it all in their repercussions if it doesn't, and so we understand all that, I think the difficulty here is obviously it's your son and your daughter-in-law and so I would first and foremost, and I'm sure this is not a new idea to you, but I would be really taken this before the Lord and praying. James 15. Lord, give me wisdom to know how to handle the situation, I think. Secondly, we always want to try to prioritize the relationship. Realizing there could be real collateral damage relationally depending on how this is handled and then thirdly, I think you having an open and frank conversation in love. Have you all. Alan ever taken the time.

Perhaps you and your wife sitting with him and his wife to say no we just need to put this in front of you and make sure were on the same page. There was a clear expectation on the front end.

We have since paid this off. There's not been any attempt to pay back. We want to work with you.

We also want to make it clear that this was and continues to be the expectation and with love talk that through has that conversation taken place.

Why attracted and progressively awkward is that there in all the effects of my thunder. That man's life, he is an integrity and follow through you. Because you have kept up frank conversation and then at least of verbal knowledge and willingness you been a tenderhearted nuts about. Yeah, we gotta get this done, but it just continues not to happen. Probably once a year we have had that conversation okay well and at least there's a receptivity to that. It's not a response like well this is your expected. This is what you're supposed to do as my parents and therefore we don't feel like this is an obligation, perhaps it's more about just the lack of priority and financial resources. So I think perhaps the next step is to say son would like to involve 1/3 party. In this here, not anybody formally but we like to connect you with somebody, not us, who can help you work with your budget. Perhaps one of our moneywise coaches Alan that would be happy to be involved here at no cost and the key would be to say listen were not expecting you to do this overnight to even in the next year, but we need there to be a good faith payment toward this that's put into the budget that fits with your overall spending plan and that systematic and that we can count on so we can see that you're at least making a good-faith effort to begin to pay this back as you're able and you would like to bring in, and perhaps that somebody from your church or one of our coaches, but somebody who can, walk alongside them to perhaps see how they could fit this into their budget get on a spending plan which will obviously reap further benefits for them financially down the road.

I think that may be the next step because right now they're seeing this huge balance and probably you know if there's a lack of maturity there, especially financial maturity. There probably single were never revealed pay this back and so they're just continuing to kick the can down the road but if they see how hundred dollars a month or hundred and $50 a month could be put into the budget and automatic payment goes out, at least you will would know they're making good faith effort, but at the end of the day. I think relationship is priority and that's where you and your wife are going to have to decide at some point if they're just not willing to do it. If you're going to forget it. In order to preserve the relationship, or whether this is something you really want to continue to press into overtime. In that way. Alan, when you involve 1/3 financial party. The argument doesn't become. Do I really have to pay this back or what does the Bible say your unit were confused that you you know your parents. Why do we have to pay you money that the argument becomes the issue becomes finances. We want to help you so that you can pass back as you promised, as opposed to we changed our minds and just don't want to pay you back, so we wish you the best with that and if we can help you out right what what you think will be the best way for Alan and his wife to contact one of our coaches for a situation like this. Yeah if you want to email us Alan at info@moneywise.org.

I'll have my team connect you with our coaches directly so we can get one of the coaches that would just be really uniquely skilled in this area who could provide some help and assistance again. Just send an email reference this conversation send that to info@moneywise.org and will make a personal connection to our coaching team. Thank you, Ellen. We wish you the best George in Florida, sir. What's on your mind program what so ways we can go about a man in a land trust. What done. Dollars net protection, and I trust PMI so the next year I have had a 501(c)(3) before and I closed out several years ago was up I will now with mounting mine. We have three options while Daniel used to bail still have a mortgage of $80,000 Lakewood Fieldhouse unit that will refinance it which I have. I 35%.

So my view towards my best interest that you made out with part that might create another material NPP what I want to find out Europe by also what we can create so we can hold that the first word you know where so were trying to find out the best way not actually I don't know about that any own children for the next. Or or that I made it back so to the two areas ministerial.

Why, why would you recommend there's ministerial fundable can create high directions or that after maybe you can use after five years old. one of the ministerial pot.

so what can you will see a lot of moving parts here in these get very complex. the key would be the timing on when this is done, and then the structure in which you use for the charitable intent, if that's what you want to try to do with this fund and are these proceeds and obviously that's tremendous. i love that idea. i want you to connect with my friends at the national christian foundation george. this is where they have real expertise in helping you give wisely and perhaps could advise you on depending on where you're at in this transaction. how you can minimize the tax liability and maximize the opportunity use this for charitable purposes. at least you have that information going into this decision. so then you could decide how in fact you wanted to be used again in cf giving.com. or you could connect with local mcf office and they have them all over the country. certainly there's several of them there in florida where they could advise you on the best again structure to put these proceeds and then to be used for charitable purposes. once you have that information that i think you can decide how you want to proceed but you could save a lot in taxes by using the strategies that they'll share with you about. thank you george and great recommendation rob. i think they'll be able to help george greatly on this down to south florida.

steve, your next banker. what advice do you have for us today. yet when you file for principal reduction only take multiple payments and make multiple principal reduction well yeah reduction only pertinent question come up with you a couple times not sure that your listeners understood that the paydown should be principal only now that's a good point to hear what steve's talking about is you have extra money you want to send over and above the scheduled monthly payment what you don't want them to do is to put it on the backend are applied to next month's payment or something like that you wanted to go right to principal reduction depending on how that payment is made whether that's through a slip that you might have with a physical check where you need to note it on the little slip that you're sending in with your check or if it's online. usually there's a place for you to indicate that you want a principal reduction.

but if you have a question it's not clear, call your mortgage servicer tell them what you're trying to do and they'll help you make sure that that extra amount is applied directly to principal because steve is exactly right. that is the. the objective steve were really glad you called today thank you very very much for that. thank you for your kind comments and rob with that i think were going to have to put a bow on it you want to tell her friends about the new moneywise at certainly the best digital version of the old-fashioned approach to saving and record-keeping what we used to call the envelope system, but this is kinda high-tech and nice.

well it is you, larry burket taught us about the envelope system way back in the late 70s and it's the most effective system for managing your money month-to-month that i've ever seen. we wanted to create the modern version of it. i couldn't find one that did everything i wanted. so our team of developers and their incredible took eight months to build what i think is the best digital envelope system out there.

just search for moneywise biblical finance in your app store today. thanks so much rob, thanks to our team. amy gabby and deb and jim and thanks for listening. join us again tomorrow


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