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CD Alternatives

MoneyWise / Rob West and Steve Moore
The Truth Network Radio
November 12, 2020 7:03 am

CD Alternatives

MoneyWise / Rob West and Steve Moore

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November 12, 2020 7:03 am

For years, Certificates of Deposit, or CDs, have been the “go to” place to park your money with no risk. But with current interest rates at historically low levels, are there other safe investments you could use to earn more? On the next MoneyWise Live, hosts Rob West and Steve Moore have a few ideas to improve your return. It's CD alternatives on the next MoneyWise Live at 4pm Eastern/3pm Central on Moody Radio.

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Did you hear the one about the guy took all of his money out of the bank and put it into a boomerang business will it turns out he wasn't getting a very good return savings that's actually true for most of us not overrunning part of the rest of it, especially in the case of CDs where your money is tied up for several years at today's House Dr., West has a few ideas to improve your return but it's your calls on anything at 800-525-7000.

Anything financial is 800-525-7000 times more CD alternatives next on Monday 1/okay Rob for years, certificates of deposit or CDs have been the go to place to park your money with very little or no risk, but lots of folks are happy with today's low interest rates on their CDs.

While that certainly true Stephen we hear from them more and more. One of the main reasons is the Federal Reserve's actions to cope with the coronavirus pandemic by keeping interest rates historically low with the CD you agree with the bank or credit union to keep your money deposited for a set amount of time anywhere from six months to maybe even five years and for doing that you get a fixed rate of return. Naturally, the longer the term the higher the interest rate right now, the best you'll do on a five year CD is around 1 1/2%. That's a long time to keep your money tied up. Sure is. But we want to talk about some alternatives to doing that tying up your money in the CD so where can we start today. Let's think of these as alternative actions that you want to make sure you're taking before you consider putting your money into CDs so the first thing you want to make sure you're doing is have your 3 to 6 month emergency fund in place and you want to do that not of the brick-and-mortar bank and certainly not in CDs but with a higher yield account at an online bank.

We mentioned these often my three favorite. Currently our ally markets and capital one 360 true their interest rates are variable and will fluctuate over time, but right now you can get yields comparable to and in some cases even better than you'll get with a multiyear CD and while it's true that rates at online banks have also been dropping you at least have the potential to earn more because you're not locked into a fixed rate for the entire length of the CD. Also your money is not tied up for a set number of years you can get in a hurry. If you have an emergency and access your funds. Alright, so I don't work with the brick-and-mortar bag, not the guys you know Don I'm not in the corner of the block in my neighborhood I contact an online bank but if I'm not asking to put my money in a CD with them. What am I asking for well in terms of what you're looking for with an online bank you would be asking for a savings account that's going to allow you to put that money to work for you with a higher rate of return. Okay so just a savings account and is my money perfectly safe with an online bank. Oh, absolutely. It's backed by the full faith and credit of the United States government and is FDIC insured, just like the brick-and-mortar banks.

Okay I will what's our next alternative action before investing in the CD.

Well this next one is always true, but especially now with low interest rates on savings that one area where interest rates have remained high is what you have to pay on credit card debt. It'll wipe out any CD savings 15 or 20 times over, so you'll have to pay off all credit card debt as quickly as possible. Once you have your emergency fund in place if you don't have the 3 to 6 months living expenses saved up again in a high-yield online account and divide your discretionary income in half but happen to savings, use the other have to pay down your credit card debt that's above your minimum payments and this is where you get a huge bang for the buck you see if you're paying 18% interest on a credit card paying it off gives you the equivalent of an 18% return on your money. This strategy is especially important.

Steve these days where there's less job security than usual. The last thing you want us to lose income and have no savings but still be stuck with credit card debt to repay okay that's good all right what's our last alternative to CDs.

While it's understandable why CDs have traditionally been attractive to folks who fear losing their money your principal and interest rate are guaranteed but what you have to understand is there still risk involved.

That's where there's the risk of losing buying power to inflation and not having enough income when you retire. Frankly, the only way to avoid that is by investing for the future in a 401(k) or IRA with some of your portfolio invested in stocks or mutual funds. Obviously you want to have a long-term investment horizon of at least five years. 10 is better if you're closer to retirement. You still have a need to have some of your money in the market or inflation will eat up the lower return okay great alternative strategies to save 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 leave you intimidated frustrated and afraid you been taken advantage of navigating the mortgage amazed by Dale Vermillion helps you clear up the confusion on rack your nerves and make the best mortgage decisions possible with confidence navigating the mortgage made available when you click the start button moneywise

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If you have a question or comment about anything financial. Maybe it is about CDs, which is what we've been talking about here for just a couple of minutes will give us a call 800-525-7000 800-525-7000 Rob last question about CDs. You know we were talking about being able to only by a five year CD these days. At barely 1 1/2% who would do that but you know, given all the craziness of 2020. Do we know where were headed in the next five years. Administer a chance that maybe things you may be seated. CDs will will start them moving back up to normal rate sometime in the next three or four years yeah will certainly as the economy improves. I think will see higher rates down the road. Although the Fed has said clearly and Fed Chairman Powell has been very outspoken in saying they're not even thinking about thinking about raising interest rates at this point.

So I think were going to be in this low interest rate environment for quite some time, but obviously the prospect for higher rates is real and in the coming years. I think we could see rates higher, especially as if we were to see some inflation begin to creep been so that'll be something the Fed will monitor it at that point, it may make sense to go back into CDs. I think the key right now is in this very low interest rate environment. You don't want to be locking your money up for three, four or five years because if rates had higher you want to be able to take advantage of those and even though we continue to focus on the newscasts every night at 6 PM in the White House and elections in covariate and all the rest. In reality, these kinds of things have been with us forever, maybe not.

Those specific areas. But what about 1928 and 29 and the Great Depression. What about World War I. What about World War II meet ups and downs have always been with us and we should just plan on that. Some of them may you may take on a unique identity but nonetheless ups and downs and that's why we say for the short term. We also say for the long term and put our trust in God for the rest that's exactly right. You know economic uncertainty is certain that if you go back historically. Stephen look it literally every decade every 10 year period of the 2000's. The 90s the 80s and 70s. You know they all have their a crisis financially speaking and economically speaking me out any number of things happen, but what we always know is that when we take the long view. We follow God's principles. We live within our means. We live with contentment. We give generously and we're living on a spending plan with prayerful goals and we have the right time horizon with that long-term perspective we are going to do well, will lease put ourselves in a position to experience God's best, and I think that includes our investments, but the only way we can do that is if we keep our lifestyle and check okay well we have here is the good news we have four lines all law, all busy and blinking at us right now, but the bad news is we have 10 lines available so there is there's plenty of space for you and your phone call today get in right now by calling 800-525-7000 Philadelphia, Pennsylvania hello Brian, thanks for your patience and what you question hello you're welcome.

Well, my wife and her school on the rent or the lease is up at the end of the year and we been looking at a building to bodybuilding.

So she want to transition into that building and so is a lot of details by not building and I wonder I'm trying the morning to get advice on that.

Yeah well this is a great idea. Brian is long as the finances of the building is me of the business can support it. You know, buying a building is a great way to build equity in the business, but the key is you just have to be prepared so you're just like with your personal finances.

You gotta drop an estimated budget. If she hasn't already. Hopefully showing that the payments on that with any the borrowing that occurs to acquire that building will be equal to or less than the rent if it's more obviously still well within your ability to pay. It got a factor in the maintenance cost which will be a factor that probably were not wasn't in the prior situation because you'll no longer be able to call the landlord if something needs to repair a be repaired. You probably need to have a commensurate additional amount of emergency reserves available for the unexpected. Now that you own this building and obviously just like with your personal finances you want to make the largest down payment. The building can support.

Usually the business can support without depleting it of the really necessary reserves, but I think the key here is that this can be a great opportunity for you. You obviously want to get multiple quotes from lenders, not just the first one that your offered, and obviously the business loans are slightly different than the personal loans but I think at the end of the day. This could be a great move for the business as long as it doesn't leave you cash-strapped and I doesn't push outside the bounds of what it is feasible in terms of the cash flow the business itself. Brian the notes I'm looking at here say that the building is $500,000 and you're going to need 100,000 down. Do you have any of that hundred thousand at this point we should have. But I know you're not a fan of the ticket out of the we are planning on doing the other details of the building be there's a rental space that's already ready to be moved into separate from the work area so that I can help with our King without the building but can't. Your question would come from retirement money that we have stated about 25,000 yeah well yeah I'm not a big fan of that. Would you be borrowing it from retirement or would you just be taking a withdrawal taken or withdraw yeah and what is your age, it's 49 okay you can have a penalty on top of this being taxable. So the reason you know I'm not a big fan is that of this approach as it becomes fairly expensive money to access because of the penalty because of the tax burden the chill and and in the case of $100,000 down payment to you know if you're pulling 75,000 now this can be added to your taxable income plus a $7500 penalty likely in that scenario, and so I think you know what I'd rather see you do is is continue to save perhaps delay this purchase until down the road. The other issue is this money is no longer working for you now obviously the building has the ability to appreciate but is it going to appreciate as much as diversified stock and bond portfolio, especially in a tax-deferred environment like a retirement account so all things to consider. You may want to get some outside counsel from either a financial planner or perhaps allow your tax or accounting professional that you work with, just to make sure you thought through all the angles before you proceed with this rambling. I have to leave you there because we have to had a break but we trust that this will work out for you and your wife thanks very very much if you're just tuning in, this is moneywise live Rob West is here taking your calls and Russians and comments on anything financial today and I was a great time to call open lines available at 800-525-7000 we come back and say hello. Quick, René and Ron and perhaps 805 five 7000 a wrong turn when it comes to money. We all steer clear financial potholes this month. Moneywise the magazine is all about helping you make moneywise. The session explicit podcasts and articles to steer you in the right direction where free inspection is waiting for you. My wife got away #/chapter 17 when God is to meeting Tori we know what elements he brought together to make it come to pass, but this we can now be on anything we could have done ourselves important in this passage that we see in verse 14 a scroll of something to be remembered and you were Jocelyn here is that why he never wanted Jocelyn to forget because he Jocelyn Johnson would be the one that we all experience because it is going to lead to conquest. You never let him forget who brings the victory.

Never let him forget what happen here today, forget all the elements that work together with me were told in verse 15 completely letters this program this month. Again, text//here's agreement 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 tool if you're interested in gaining a solid biblical understanding of money, possessions and eternity managing God's money is available in the store moneywise like to check us out online.

That's pretty to do with moneywise moneywise live OR G in there you'll find a number of free resources. You'll find our store.

Where there is purchase past radio programs radio archives and easy way to find a certified kingdom advisor in your area in a number of different disciplines and also how to connect with the budget coach all of that and more. When you visit moneywise, let's see, Whiting, Indiana hello Deborah, how can we help you, I love your ministry to keep people thinking turning out like life insurance and my husband and I asked if he had enough, amigos. I don't have any and talking so I'll not worry about that night yeah I like that about that, but what are my options because I tried speaking to him about it and a very low situation to give Mike talk about it. So what are my options that I have asked Deborah when you think through kind of the conversation that you had what you feel like the perhaps the issue is is it that he just doesn't want to talk about his own mortality. Is it that he doesn't want to think about adding something else in the budget. You feel like you have a sense of where the pushback is coming from a combination of both about that up with a serious subject and not to discuss this all about what might happen that I have because this is something we talk about yeah I get that you will handle your finances separately or is everything combined and managed on a family joint basis separately might like 12 years old. He's a lot more Ways like you would like to do it.

Oh yeah, well I mean obviously the larger issue here.

Your money is symptomatic of heart level issues. It really reveals were replaced or trusted reveals what we value you as we spend God's money. It is a pretty clear indicator. Larry Burket used to say the clearest indicator and what's going on in our lives spiritually and so the bigger issue here and will get to the specific question just set justice. A moment is that God wants oneness in your marriage the idea of two becoming one includes your finances and so that the best case scenario would be the two of you coming together and really seeing this is God's money for you as a couple. One flesh, and then really playing praying through where God is taking you as a couple and how these resources are a tool to accomplish God's purposes and really, you know, allowing this to to bring you even closer together. I realized that may not happen anytime soon, certainly not apart from God's intervention there and so we can certainly be praying.

To that end, I think with this specific issue, though in the current environment where everything separate, although not ideal, it's the reality of the current situation.

One way to approach this would be to go to him and say listen, you know this is key critical for me because right now until we get to a point in the future where we have enough assets build up that if something were to happen to me your provided for in something were to happen you I'm provided for, because we saved and we have retirement assets in Social Security and so forth until that point, I have a real challenge shifts. The Lord were to take you home because the loss of your income would have a real detrimental impact on me during our working in savings years and so it's really essential for me and my well-being to know that I have that risk offset in that that financial hardship that would be created by the loss of your income has been accommodated through life insurance term life insurance Deborah would be the most effective and cost-effective way to do this because you're buying pure insurance you could get the amount that you need, which is a rule of thumb would probably be 10 to 12 times his income that you're counting on and you could do it at a reasonable cost and what you could say was you I'm willing to include that in my expenses, you would be the owner of the policy would be on his life and you would be the beneficiary. He'd have to go along with it because you have to go through medical underwriting and so forth. But it would be a policy that you own. You paid for and again attached to his life where you are the beneficiary and receiving the death benefit. So apart from him being willing to do it and going through the medical underwriting you could take care of it and cover the cost on a monthly basis or quarterly.

Moving forward, to some extent much I really do because I felt like a stalemate and I might get so much I that's very informative.

I really do.

Okay Deborah God bless you and I will certainly ask her moneywise live community praying for you as you have that conversation you rub it it it is possible that maybe her husband just doesn't see this as a necessity, and maybe it's something that only rich people do or he doesn't want to give up control of this money to an entity.

He's not familiar with. So maybe 1/3 party, even if it's a life insurance salesman or a financial planner. Maybe 1/3 party could help in a situation like this if you wouldn't feel put upon this is that makes sense. All absolutist you think that's a great idea because often times you know it's one person's perspective versus another, and having an outside, quote" expert who can weigh in on this and you bring that additional thinking to the table. Could perhaps break through any reservations he might be having about to why this is necessary so I think yeah involving 1/3 party if he's willing would be a great idea. Okay, let's see, let's check your emails today.

Rob I think we yeah we have one from Debbie she writes dear Rob and Steve, I'm 62 years old and will retire at 67 I have two retirement accounts with around $25,000 in each. My son is my beneficiary. Do I need a separate life insurance policy for him.

I have one now that's whole life.

If I cancel it out. I will receive enough to pay off my last credit card and then be debt-free.

Should I do this.

Yeah, I think the question would be what is the purpose of the insurance you if you were seeing this as an inheritance that you could pass along to your son. Perhaps you know that's something to consider. I think the issue here though is you know there are better ways to go about that and if in fact you could take this policy that's frankly not necessary because something happened you wouldn't create a hardship necessarily for an adult son, and you could pull the cash value out to take care of all your debts and you have more margin to build savings and assets over time which could ultimately be passed on to him without you incurring this large expense of Debbie were glad that you are sending that email. We trust you were out there to hear Rob's answer. Thanks very much.

If you'd like to send Rob a brief email. Here's the address will be back with more right after 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 that eventide we 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.

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Just before the important Thanksgiving holiday socks ending lower on Wall Street today. The Dow dropped 317 point NASDAQ was off 76 on the S&P 500 down 35 this is SRN use diversified number of different areas in our lives. All things are lawful to me but not all things are as first Corinthians 612 yes I can see how that would apply to my money, my finances, also my job, my relationships again. All things are lawful to me but not all things are profitable.

God, what is your will for me okay let's go to Grand Rapids, Michigan. Just say what you situation. Again, the question following up on the question you kind of typically about how to out on my own so I have like I mentioned 17,000 that I don't really know what steps to take. I took it Ramsey class. I would like to set aside some three months maybe for an emergency fund, but I'm looking at the possibility of renting buying right now I can't find any places.

At any rate to rent 700 a month. I was wondering if you ever like to buy home mortgage. If you don't stay there long term if it the cheaper rate. Yeah, I just sigh a couple of thoughts there and personally appreciate your thoughtfulness just in terms of being well-planned and really considering what God might have for you in this exciting season of life is your getting started. I'm thrilled to hear you got some savings you think about home ownership of these are all good things. I think there's really two things that come to my number one is I don't want you to incur major liability until you're ready. Yes you are, quote unquote throwing money away when you're renting although you're getting something pretty significant return each month. That is the ability to have a roof over your head. At the same time you're going into a home and taking on the added expense of keeping up with the maintenance and obviously the property taxes and just all the unexpected's of that come along with homeownership before you're ready can be problematic and I think by yelling evidence of when you're ready to do that would be a that you have a 20% down payment, which I realize can take some time to accumulate but I think it's an important sign that you've been able to put some money aside and you've got the rest of your financial life in order, which allows you to do that and then secondly keep you out of a position where the home, perhaps may lose value for a period of time and and you might be upside down in terms of equity.

I think the other issue as you're considering this is is just a look at you know the cost of the transaction. So you asked about you. Perhaps getting into a home that you don't think you can be a very long and you just have to look at you and others cost going in terms of the actual buying of the property. The closing costs and then there's cost to sell it. You got the realtor fees and got taxes and you just got a whole host of other expenses that you will incur. That's going to erode any equity you would've built up or in a short period of time. If you just buy it and sell it at the same price you can end up coming out lower than where you started, just because of all the expenses associated with buying and selling a piece of real estate.

So I think given the time horizon given where you're not just starting out, given that you got the 17,000 but you want to keep three months minimum in reserves, which I would concur with. I think as much as you'd like to get into that home delaying that for a period of time continuing to rent is just really gonna put you in a stronger position.

Long-term where you can save a bit more and then perhaps when you do make that purchase at least plan to stay for 5 to 7 years. You can get some appreciation before you go to sell that for your next place you said you were out were happy you called in and got through again today and were happy to hear a young guy like yourself being forward thinking about this and serious about that way your life is heading. We sure that you put all this in God's hands and listen to wise people around you that ultimately you be in the right position. We pray for that for you as well and were glad that you call thank you very much.

800-525-7000 Illinois and Renée what's on your mind's are all of you think you worked at a local college and years of retirement has been some strong covert patient is a possibility to Illinois a bond rating and its athletic conference with individuals who are in the program that will happen to that retirement age in local money be available.

Another option would be advised that we can pull the money down early and the possibility we can reinvest the money elsewhere.

I'm just not sure Amber is very concerned about that.

Yeah, and I can understand Renée why you would be obviously you've got a lot riding on the strength and viability of the retirement system I've not seen anything that would indicate that with the service program that you talking about that you have the ability to pull the money out apart from borrowing it. However, there may be special provisions being made. Given what you're describing here. I'm just not aware of it. So I think the key at this point would be getting a bit more information about what your options are.

If in fact they're giving you the ability to let's say take the value of what you've accumulated and roll it out to a qualified account elsewhere. Given what you're describing with the state of things it may make some sense because then you could have a little bit more confidence that you have this growing in an environment where there's not these risks that you're describing today and you would have a little bit more confidence in the long-term viability of it again. I think it's just the key here is to consider what are the implications of that. You certainly don't want to incur any penalties. As a result of the withdrawal you would want to only exercise a provision to do someone about a rollover. If that's going to be permitted to another qualified account. So I think at this point you need to get all the documentation you can and I probably contact a certified kingdom advisor there in Illinois to review that with you and help you consider all of your options. You don't have a financial planner investment professional that you been walking with fighting urge you to go to our website it moneywise moneywise just click find a CK Renée we wish you the best of that sounds like a well let's say an interesting situation at the very least. But if you will. If you can't find the information you're looking for.

Ultimately, don't be afraid to give us a call back were glad to get through today.

Thank you, Tampa, Florida, Elizabeth, what you situation our question is my and I have retirement. I have been at the portal and I have a 4038 that we've been putting many I have a friend that has an IRA as well and she was saying that we should also get an IRA so that when we retire.

We have many that we don't need to pay taxes on an there has been a rumor that occurred from a couple of people that right now when you retire the taxes that you pay is lower than anything, but were paying now working that that change and eventually we may end up even more taxes when you retire.

Then the game now yeah yeah well I think these are all considerations, yeah. There's obviously a likelihood the taxes are headed up from here, especially given what's just taken place politically and what we know about the current administration and their plans for taxes. I think the key is to have options because nobody knows for sure. So having both the tax-deferred and the tax free environment working for you is key. I like the idea of having both still I will talk more off the air moving right 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 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, there's never been a moment like this with everyone you're with is asking questions they never asked before you thought they never had before facing circumstances and challenges they never had before. They may not admit it or even know what they're desperate for the peace that only comes from accepting Jesus Christ as their Lord and Savior's words have never been more poignant coming to me all who are burdened and heavy laden, and I will give you rest the peace of God, which surpasses all understanding, will guard your heart and your minds in Christ. Yeah this is good news is you're called to proclaim every expression of despair is your opportunity to share how your please come from God how God is using these trying times to get their attention and draw them. There is nothing more exciting than knowing God is using you to move people closer to join is not America because generations your wisdom and experience in sales for grand we've heard about a woman's biological why think there's another clock people off here ticking when they reached their 50s, 60s, and seven it's the generational, most grandparents are very aware of this clock ticking away. We realize our children and grandchildren will be around long after work on and we spend more time think about what part of our lives be passed on to future generations. Grandparents don't let the ticking sound hypnotize you get busy proactively plan for what legacy you want to leave behind and then start making those daily and weekly investments that will truly make a difference for your children and grandchildren. You can find out more about this on our website and grandkids 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 moneywise just before the bridge. We were speaking with Elizabeth, who was concerned about retirement and just where the rates are going in with the new person in the White House might be doing says one thing you might.

We don't really know. I can sum it up for us from yeah and really it's not a factor of what's going on today what were talking about is how do we approach retirement 20 years down the road. Who knows what the tax environment will be a could be higher than right now could be lower were in a very low environment right now, so prospects are that it is higher, and so Elizabeth was saying. She is a friend encouraging her in addition to a tax-deferred for three being where the withdrawals would be taxable enriched retirement.

She's encouraging her to have a Roth option available where you pay the tax now and you pull it out tax-free in retirement. Here's the bottom line.

We don't know. So the idea that you could have both working for you is a great option if you have both the traditional and a Roth 401(k) or 43 be at work. Perhaps you split it 50-50. If you don't maybe open a Roth IRA and you contribute to that. At the same time you're contributing to your 401(k) and 43 be.

The idea being you got both of these assets growing when you get to retirement. Then, depending on what the environment is tax wise in your income. You could decide which one to pull from, according to which one is most advantaged for you and I think that's a great idea and Elizabeth again will glad you called today entrusted that information right did you fear will help Ellis go out to tell Mitch Ohio hello Rod, what's your situation and that we can help you with today.

Yeah I going to be 70 in April and met last year, the required minimum distribution from my retirement was not very and that we did not need the money that we left it in and I was wondering if you caught anything in the wind about whether the required minimum distributions will be waived again for 2021 yeah that's a great question Ron for the benefit of our audience. If you weren't aware of the cares act that was passed as a result of the coded 19 pandemic did push the pause button for all required minimum distributions for everyone no matter what your age is for the year 2020.

No warranties required hot rod there's not been any conversation that I'm aware of about 20, 21, so the way it stands today is required minimum distributions will return in 2021 so since retirees will be a year older than the last time they took their RAR MDs. It will be a slightly higher percentage from their retirement plan. So I would say you should plan for it now.

We don't know we don't know, right in terms of how will the pandemic play out. Will there be further action next year because of the continued hardship on not only American families but on the economy as a result of the pandemic. Could that result in additional legislation that would again waive the R&D.

It's all within the realm of possibility. It's just not being considered at this point.

So at this point, I would be planning for Rod thank you very much.

I great question. I list what the Kansas Bostwick. I know you been there for a while and we appreciate your patience. What's you've been hacked in some way, what's going on there. Okay, my calling. You are talking earlier about online accounts.

Safe and secure and I just want to relate the story.

I had an account with green dot Corporation had about five months and I got a phone call and said high-minded try to use my card and wanted to verify it was me a confirmation card number and I sent that back to telling them and they said they would issue me a new card within a couple of days will that card never came. But the next day I received an email that said my account balance had been transferred into a yahoo account so I called after going through their automated service center and get in about 15 different operators.

I finally got someone who took my information and said that they would issue me a paper check to replace the balance. It never came. So I contacted the corporation and went through a lot of stuff finally contacted Better Business Bureau and finally went to the FBI scam and have never received so much of the letter or payment back from them that they apologize for taking my money. I've never seen it, but it had to be an inside job of some kind.

Because after that I could never get my password or account information to work always said does not match our information so I did a I forgot my password note and the numbers they sent me the last four digits were not mine so someone on the inside had to change not only my balance will change my contact information so that I could never contact them again. Well, that's what I'm so sorry to hear about the experience you've had it. I think the key is a couple of issues. Number one is we need to separate the safety of the institution with regard to the backing of it by the FTC from the customer service and the services of the bank itself be a brick-and-mortar or online. I think the key is if you're with a bank that's a member of the FDIC then you know that your deposit is backed by the full faith and credit of the United States government that's giving you peace of mind.

It's what most people are looking for with their bank. Then we have to look at okay what about the service of the rate in the longevity of the strength of the institution that were looking at and there are online banks that are backed by major corporations.

So for instance Marcus would be a great one. That's the online retail bank of Goldman Sachs. Goldman Sachs happens to be a Mac, a major financial institution with a lot of strength, a lot of longevity and yet they have an online expression that's an FDIC insured bank called Marcus I'm not endorsing that particular one. I'm just saying you know, I think, in addition to finding an FDIC insured bank. We also need to look at the reviews. How is it rated what can a customer service to they have, how long have they been around and so obviously with your situation, I would press into this because there are high, they are highly regulated as banking institutions by not only the US government, but by the state in which you live.

In terms of the finance department.

So I would absolutely lean back into this, make sure they resolve this and make it right and then perhaps it's time to consider another alternative, but I wouldn't come through this whole thing out in terms of not using an online bank moving for because there are a lot of benefits including lower or no fees and much higher interest rates. Bostwick worry. We appreciate you sharing that with us today, and I know must be frustrating to have to follow through with this, but if you decide to do that.

We like to know ultimately how it works out it will benefit us and I'm sure our listeners as well. Feel free to give us a call back.

Thanks very much.

Cleveland, Tennessee hello Carol, what you situation there, I-year-old grandson definitely needs some guidance on using money know which of your books I can get yeah, that's great.

Will Carol delighted to hear that you're thinking about your grandson beginning to learn God's way of handling money out. What I'd like to send you a book for you to pass along to him. It's called master your money. I read it at about that age at age 16.

It's written by my good friend and mentor Ron blue and it's good to give him a great overview not only of God's principles beginning with God owns it all and write down from there, but also the real practical side of financial planning that investments the need for a spending plan, contentment, staying away from comparison of the whole 9 yards. So if you stay on the line. Carol will send you a copy of the book, master your money by Ron blue and you tell them it's our gift to him.

He warned reading, master your money when you were 16 years old I was muttering that he is or something, you know my dad was 30 years as an investment advisor loved this area of finance, but he loved the intersection of faith with it as well and so yet he passed along to me at the ripe old age of 60. That's a classic book, that's for sure okay is take another one here Shelbyville, Indiana hello Jim, what's your scenario. What you situation how can we help you I'm older than dirt to start with – thank you for what you do appreciate what you do and financially were in fairly decent shape right now. I was in good shape. However, I'm concerned about possible socialism and inflation and I wondered if gold that you would recommend gold for investment, and if so what would you keep it yeah you know I am not a huge fan of taking possession of physical gold you I like the idea of having an allocation to gold, but I would say no more than 5%. Gold is a store of value. It tends to be a hedge against a falling dollar and a very volatile stock market, especially given what we've been through this year and periods like this, although they all come in different shapes and forms, and so that's why you'd want to have an allocation to gold but going beyond 5% certainly beyond 10%. I would stay away from. Just because tends to be more volatile and doesn't perform as well. Over time, but the downside in my view, and a lot of people would disagree with this downside. In my view to taking possession of physical gold is number one, you've got to buy and sell it and that usually involves a dealer which means there may be a markup of some kind. Number two is you gotta store it and you gotta do that safely and it just tends to be a bit cumbersome in terms of how you buy it, sell it and and secure it so for that reason I like the idea of taking an allocation using perhaps a tracking ETF like GLD or something like that, that's gonna follow the price of gold giving you that allocation your portfolio, but without you having to take physical possession of everything that comes with that again that's just my perspective.

You may disagree in terms of wanting to have actually the physical gold for other reasons but I think the key is not to get overweighted estate properly diversified and just recognize I think over time, with a properly diversified stock and bond portfolio. You can have less volatility and better performance over the long haul. Jim, we thank you for contacting us today and hope that information helps so much. Jim mentioned he's older than Rove. I doubt that I used to have a friend told me that he was older than dirt.

Jim said older than dirt. My friend mentioned I heading in that direction.

I thank you for joining us today.

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