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November 16, 2020 7:03 am
Romans three has a prescription for difficult times we glory in our sufferings, because suffering produces perseverance. Perseverance, character, and character trying to cope with the difficulties of Christ quickly see there's much great today host Rob West talks with investing expert Mark about staying thankful that your calls or anything financial at 800-525-7000 800-525-7000 nine Steve Moore still lots of time for Thanksgiving today. My wife Rob Mark Miller's executive editor at sound mind investing and we know the constantly analyzing financial data over there. But what folks may not realize that they also spend a great deal of time pouring through God's word so Mark is here to help us today to help us keep things in perspective. As we approach Thanksgiving next week and I'm not sure how quickly that got here, but it did.
It sure is upon us. It's been a tough year. No doubt in the pandemic obviously continues to take a toll so we could certainly use some perspective and that's why I'm delighted that Mark is back with us marking good afternoon good afternoon glad to be with you again were delighted to have you as always market. Let's focus on that word perspective. Where should we look first for perspective in these difficult times.
Well, it's always a good idea to have great God's word and we need perspective and I think that a good spot divan here today is in first Chronicles 29 where it David.
Praise the Lord in the presence of the whole assembly saying yours. A Lord of the greatness and the power and the glory and the majesty and splendor for everything in heaven and earth is yours and I think that that's just a great reminder to us that God is still in control. So yes is no question that 20/20 has been a really tough year for a lot of people don't have to going to much detail. You know, everybody knows you have this global pandemic. There over a million lives lost in all the people left behind that are grieving the financial side of that has been pretty intense for a lot of people with jobs lost, businesses closed forever.
You know, really the only comparable here in the United States on the economic side is really to look all the way back to the Great Depression and and when we have tough times like we've had this year.
Oftentimes it really kinda acts as a mirror of sorts, and it shows us where our confidence really lies. It's easy to say one thing but kind of exposes where our confidence really is when we have these tough conditions then who or what we turn to in these times can be kinda revealing enough for turning to anyone or anything other than the Lord is our hope than were bound to be disappointed was no question about that and perhaps identifying some of these. Titles Mark that we may place our hope in that can lead us astray would be helpful so wanted to do that. Where might we look to avoid some of these sure well you know a couple this year that have been easy to identify. One would be science you know we had some good vaccine news over the last week which is wonderful but we spent most of the year, watching the experts kinda tie themselves in knots with with different conflicting advice. You know, politics is another one that has has been big one this year but you know ultimately very satisfying and very fickle basis for hope.
You know, one that hits a little close to home for us in the investment industry is personal savings and the reason that had little close to home is it's really easy sometimes for folks with a lot of savings. Maybe money in the bank or in investments to feel okay. During a time like this because really they're looking at their savings is what's going to make everything okay through.
Like this and please don't misunderstand. Of course we need savings with entirely biblical and prudent to save but we've got to recognize and resist that all too common tendency to trust in the provision rather than in the provider. What is such a good word marking a reminder that we all need all the time if we put our hope in anything or anyone else. We will be sorely disappointed will continue to unpack this right around the corner will indeed you listening to moneywise live with your host Rob West, I'm Steve Moran joining us today from sound mind investing stick around will be right back is her phone number 800-525-7000. 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 and how to save and invest and give wisely create a long-term financial plan and how to get out of debt. Find it all in master your money by Ron blue available when you click the start button moneywise live outdoor for 30 years.
Sound mind investing has been helping Christians reach their financial goals. Step-by-step guidance for investors at every stage from those just getting started, those getting ready for retirement through scriptural principles and practical suggestions. SMI offers financial wisdom. More information short via webinar on profit and peace of mind and matter what's happening in is available at sound mind investing.just a seasonal to letter those players with hydrolyzed when I can end up forgotten, nobody's because we move on to the next one. What do we worship you know, do we worship people things that are here today and gone tomorrow.
We balance our lives down to something or someone to someone who loves us with the most amazing someone who keys about even the smallest details of their lives.
Do you know Jesus is Jesus who heals. What does this Jesus who loves the pool. This Jesus who died for you and me. The Jesus who rose again. Do you know this, Jesus I ask for you that is robbing you of freedom and peace of mind. Christian credit counselors can help where a nationwide nonprofit counseling organization has helped over 3000 individuals in the last 27 years get out of credit card debt percent faster while honoring that debt and phone to learn how Christian credit counselors can help you visit Christian credit counselors.org Christian credit counselors.or call 800-557-1985. Nevertheless, time for Thanksgiving and that's the cover of the in the November edition of the sound mind investing newsletter this month. If you'd like to check out this month's newsletter and past newsletters, including a number of articles of that have been set aside for a moneywise live listeners. You can do that by visiting sound mind investing.org that sound mind investing.org Mark Miller with us today as we discussed these things.
Every word we put our faith. Where do we put our trust. Oh, what do we have to be thankful for this time of year when so many things are up in the errant here to lead us in that discussion. Of course Rob West you know market was so poignant was you were talking, just before the break, about the perhaps false idols. We could call them that we have a tendency to place our trust and especially in uncertain times and it becomes very plain very quickly that when we trust as you said the provision rather than the provider. We will always be disappointed but the good news Mark. We can always trust God to provide for our needs get yeah, we absolutely cannot. It's so reassuring again to turn the Scripture to see the Lord's conditional promise from the sermon on the Mount to seek first the kingdom of God above all else, and live righteously and the father will give you everything you need. That's Matthew 633 yet so true, and we talk about is you said a conditional promise because there's God's part. And then there's our part.
Let's focus in on our part for a moment to help us have a perspective on what that looks like yeah absolutely so it's no surprise for folks to hurt me out here before that at some I know were always trying to counsel people in the protective money management principles that are found right in God's word and were confident that when we follow those that folks can survive and possibly even thrive through difficult storms that that come along periodically. That really starts with having the right motivation and that involves seeing yourself as a steward or a caretaker of God-given wealth, we find scriptural basis for that and first Chronicles the Scripture that I let off with yours Lord, is the greatness and power and everything in heaven and earth is yours so you know, that tells us that were not in this really for ourselves. It's not about increasing our wealth, but to increase our abundance, so that we can make our father happy through our generous giving and through taking care of the people in our lives, our own household and beyond. Yeah, that's right. We want to be a conduit of God's resources into God's activities and what you're describing is really the attitude the heart attitude that we need to begin with, but then we build on that going again back to God's word is we put this foundation in place right yeah that's right, you know, Psalm 119 tells us that that your word is a lamp for my feet and a light to my path and specifically as it pertains to building a financial foundation that means that were living within our means spending less than we earn using our monthly surplus to pay off debt and build a savings reserve exactly 4 times, like we've been through here lately, and all of these are solid biblical principles and in a real good illustration of that light to our path.
So even though you talk about stocks and bonds and Wall Street in maximizing your investments in increasing your savings again all of that because number one the first and foremost you Mark and everyone else there sound mind investing our born-again followers of Jesus Christ and is it okay you guys see yourself as a ministry even though you don't wear a collar or have a have a what I don't know.
But that means you see yourself selves as ministers of the gospel.
We do know just this morning we we gathered as the staff as we do every Monday morning and prayed then, and for each other but also we prayed that as we go about the Lord's business this week that he would help us and help us and our our ability to help the people that he is entrusted to us and that's really how we view it that we pray, you know, if we do marketing or something like that. We pray that the Lord will bring us the people that we can help. And then we pray you know regularly that the Lord will help us to help them so that that's what it's all about for us absolutely love it so we can help you today with anything financial give us a call right now anything investment related particularly well marks here 800-525-7000 800-525-7000 so as as Christians market. You say God, what stock should I buy this week and does God give you an answer when you say well you know I don't. Not that typically but I absolutely pray all the time that the Lord would lead me you know if I'm doing research that help open my eyes that help show me the things that I need to know, and I absolutely believe that part of his provision to me to our company and the people that he's entrusted to us is that he is answering those prayers and leaving us in the paths and directions that we need to go to see the things we need to see, to be able to do this job well that's great word and you know that's what it's all about going back to God's word to pull out these principles that we can then apply to every facet of our lives, but that certainly includes our money. A moment ago Mark, you were talking about some of those foundational pieces that we mention here often on the program spending less than you earn. Using your monthly surplus to pay off dad and build savings for difficult times, but if you're on the path you just referred to it again. That means you probably need a plan as well for where you're going. Yeah, absolutely. And that personalized investing plan is central to everything that we do it at some I you know that that comes right from Proverbs 21. Five the plans of the diligent lead to profit as surely as haste leads to poverty and so often people are so eager to jump right into invest get their money working for them, but really spending that time to put together a personalized plan that reflects your kind and what we call inside out thinking instead of being influenced by all of the outside invoices that the CNBC programs and and headlines from from magazines and newspapers and things you know we want our folks to be a initiators rather than responders and have their investing driven from their own internal needs that they've they've kinda fleshed out in that investing plan rather than being blown around by whatever the market happens to be doing at the time the system calls Anchorage Alaska Rebecca. We appreciate your call today. What you situation, right now where 401(k) account years ago and he can show that seller currently comfortable shutting down something with New York and I have no idea what Derek account current.
Here Anchorage and not working right place. It might have talked to don't have experience with the current K people here my current financial advisor okay very good Rebecca Lee appreciate the question just for the benefit of our listening audience. Rebecca is referring to a solo 401(k). That's all the other was known as an individual K is basically a 401(k) like you haven't with your employer, but it's for an individual single person is perhaps the sole proprietor Mark how would you go about evaluating an alternate custodian for her account is a great question. You know the idea with a solo 401(k) Rebecca I'm assuming is that you're making your own investing decisions within that account. Is that right so you're directing how that is invested right now.
Yes, that's correct.
Yeah okay so I think the way that I would approach that Rebecca is I would I would look at that larger custodians for other self-directed investments. The ones that we typically talk to our readers about frequently.
Our Schwab fidelity TD Ameritrade which is actually going to be bought by Schwab before too long on some of those and I'm not. I'm not sure which of those would be the most attractive for a solo 401(k) but I would think that that would be a very good place to start looking normally with retirement accounts. You can transfer those custodian to custodian so that you're not taking possession of those funds, but your old custodian just transfers the account to the new custodian and so I would I would take a look at those first at the as a resource to see if one of those looks like it would do a good job for you and Rebecca.
We hope that helps. At the doesn't give us a call back in will kick around some more with you.
We have to get a break right now unfortunately but this is moneywise live I guess. Today Mark Miller always listing to have more convinced of the rest of the staff with us. Your host is Rob West and that here's her phone number 800-525-7000 800-525-7000 will be right back to take some more calls open lines.
Anything financial, anything investment related to the next few minutes well marks here 800-525-7000, and we will be right the financial wealth you leave behind could be the best thing that ever happened to your loved ones or the worst in it 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 live.org more conspicuous to make this victorious more conspicuous to us after something like we just believe he would day.Israel.Israel. There's no way you can think something with enough power to get you over that she would tell you herself for 30 years, you know, God is God is more conspicuous when the banner in your victory, you know, you know, we don't just think we all just believe this is a time when we now almost always in the contents were to learn something like this here will carry the military to military in terms of inventory, listening more where this relations is now available online.
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.org joining us today is moneywise live and were here discussing not only your money or finances, but also God's word doesn't have to do with what we do each day, Monday through Friday here in this program here to help us today to help us talk this concept is Mark Miller from sound mind investing.org, you really ought to check them out online. They have a lot of great resources a fantastic world-class monthly newsletter and much much more email@example.com gentleman with your permission, I will take another phone call. Okay, Sycamore, Illinois and Jeff talk. We help you talk to about 20 year time frame.
I purchased EE savings bonds for my niece and nephew with the attention of them using it for oncology and my brother wife divorced and never not very good financially so I don't know that they even have their paperwork anymore.
Ever, so that I have a copy of their paperwork and I'm just wondering I didn't see anything on there any way to track down and see if I can if I can catch a man somehow I can get the money so that the kid can use that for school as it was intended. Sure sure yeah you know if you want to look up the value of these savings bonds. Jeff the best place to go is a treasury direct.gov treasury direct.gov and you'd be able to actually if you have the information on those particular bonds you can actually type the numbers in there and and will find out the value of them if their paper bonds since you've lost them. You could have new electronic bonds sent to get the numbers for the electronic bonds to replace them. At that point you could then redeem them more for the purpose in which you purchase them in the first place.
But I would start a treasury direct.GOP to establish the value and then work through the process of getting them replaced. If in fact they are lost and then you can can move forward from there. That's a great resource and a great website. We appreciate your call today.
Mark got you had said something just before the break that I think was pretty important.
You are talking about, that we can't take our cues necessarily from CNBC that might have some great financial information, but if we find ourselves glued to that 24 hour news cycle, especially as it relates to our money it can really lead to some irrational thinking.
Perhaps emotional decision-making talk about the importance of really guarding ourselves against getting caught up in that salute a big deal and I think that it's so important that we as consumers of that information.
Understand the dynamic around financial television and financial media in general. The reality is, those stations have to fill a certain amount of time and in these days it's really 24 724 hours a day seven days a week with some kind of material and just like any other kind of news show they know what attracts attention.
What will grab your attention and hold it so it's always sensational. It's always very short-term. What you know what's impacting you today while investing really shouldn't be a what's impacting you today kind of endeavor we really want to strive to cultivate a long-term perspective and these programs really are completely at odds with that there really cultivating a very short-term perspective typically just need to be very careful. It's not to say that those shows are all bad, or that they're lying to you. Nothing any of those things. I'm just saying it tends to give you the wrong perspective on time needed to be very careful. That's exactly right Mark.
We so appreciate you stopping by today.
Thank you for re-centering us in the midst of uncertainty on the truth of God's word that he didn't give us a spirit of fear but our love and a sound mind and were grateful for sound mind investing in the wonderful resource. You are just think the stuff in my well is my pleasure.
Please market Thanksgiving best of the rest of the staff.
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Now there's even more to discover each month. Subscribe today. My Moody radio.org my movie radio.org buying a home is the largest most nerve-racking purchase. Most of us ever making 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 can take advantage of navigating the mortgage amazed by Dale Vermillion help you clear up the confusion on rack your nerves and make the best mortgage decisions possible with confidence navigating the mortgage maze available when you click the start button moneywise lot drums got what it is as it shall provide strong protection against what rotavirus conflict comes a week after Pfizer revealed its own boxing to be similarly affected initial supplies of a vaccine will be limited and rationed US officials say the Pentagon expected to get the number of US troops in Afghanistan by almost half. That's by January 15 that I got also expecting to get the number of troops in Iraq.
The 2500 a reduction of more than 500. The decision follows the president shakeup of the Pentagon last week in which we install those who share his frustration with the continued troop presence in the least, but now is closed at a record high, erasing the last of its pandemic losses.
The blue chips picking up 470 points today that Azteca had 94, the S&P 500 up 41. This is SR and use your favorite radio station. This is moneywise live where timeless wisdom God's wisdom meets today's choices and decisions and if we can help with that LS will overhear us a call right now we have a number of open lines 800-525-7000 800-525-7000. That's go to Allentown Pennsylvania next Mark. We appreciate your persistence in your patients, how can we help you, thank you very much for having me on the call. I enjoyed listening to you, and I feel like I've learned quite a bit over our time together on the radio make excellent sure yet.
My two questions. I can sneak to win number one right now. The interest rates are so low. I know you got talk regularly about interest-rate. My situation is I'm trying to decide whether I would like to buy my next home. At this point because the interest rates are so low, so what do I mean by that I mean the lifetime of the loan terms of what you pay back when you can get like that 2.5% interest rate compared to if you go five years ago it was 4.5% of interest-rate are significantly significantly different payback totals. So my first question is are the low interest rate motivator for me maybe to buy a house a year or two sooner than I was planning and then secondly the property that I'm currently in. I would like to refinance to get down to the much lower interest rate but with the possibility of selling this home in the near future to buy the next home, or even potentially keeping this as an income property.
I just wanted to hear your opinion on refinancing on the home. I currently live in with very much questions up in the air about what the future holds. Yeah, yeah, I appreciate that markets very helpful to me start with the first question, and you know no one knows what the future holds. Obviously, the Federal Reserve though is been pretty clear that it's not even thinking about thinking about raising interest rates. That's with Fed Chairman Powell said recently and so of course someday rates will rise, but not likely anytime soon and I think anytime soon means probably over the next 12 months. Obviously I could be wrong, but just given everything we know about what's happening around us, and given recent comments in the last six months by the Fed, I just don't see rates heading straight up from here at if we were to see inflation begin to creep in overtime than that would be the time where they would begin to raise interest rates, but I don't think that's happening. Secondly, though I don't think.
Although these rates are attractive.
I would really want to unpack a bit what it means for you to make this purchase. A year or two sooner. In terms of your financial readiness because although these interest rates are very compelling. The last thing I would want is for you to stretch by something you're not quite ready for that would either put too much pressure on the family spending plan because you know it's taking a year you have too much house and you don't have the income to support it or you're not putting enough down and so you don't have any equity in you know we have to think about, worst case scenario and we want to make sure you have plenty of equity and we want to make sure that that payment fits into your budget so you can accomplish the other goals and objectives. The Lord has for you. So I would never stretch to buy a home that I can't afford just because the interest rates were compelling. So give me a little bit more information about what that would mean in terms of you doing that your two sooner. So what that means my background in math teacher amortization table last week and what I learned what my initial plan was going to be saved about $20,000 a year going forward that I have a really nice down payment going into my next home when I ran the amortization table on what I believe my next home is gonna cost me that payback number on that lower interest rate being 2 1/2% with about $150,000 difference from the payback if that interest rate goes up even 2% to what the rates were five years ago in my head I'm look at it will save 50 grand up the next three years and then I additionally have to pay back higher interest rate. Another hundred and 50 grand. Would it make sense monetarily to move all of that up two or three years because now I'm gonna pay back a possibly depending on the interest rate do hundred thousand dollars lower which is excluding the $50,000 I would put a down payment sure that your picture does yeah have you looked at the corresponding monthly payment without you putting this extra money down, but at this low 2 1/2% interest rate to see how that fits into the budget. I have yet and budgetary why I believe that I'm going to be able to handle it. I'm also a big believer in God has a plan and everything I do and I just love the way things work out like that. I wasn't really thinking about that heavily. I get the car one day your show is on and you started pretty much the wheels in my head to have all these thoughts and no part of it might be just I get excited about numbers of the other part that I can encourage this route. In the present. Yeah, I think, though, the key is, you know, we certainly don't know what the future's holy holds, but we do know that God's principles work and so I think we need to apply a lot of this thinking in terms of making sure were not getting too far ahead of ourselves. You I would use 25% of your take-home pay is a rule of thumb for PI, TI, principal, interest, taxes and insurance. I would also like you to get to 20%.
So perhaps you need to first of all, continue to pray asked the Lord to give you wisdom. James 15, but then secondly, perhaps you split the difference rather than waiting for years until you get to the full. You know 20,000 or three years maybe a way to year and you know watch interest rates and see what they do.
Again, I don't think they're going anywhere anytime soon and if you could put another 20,000 away. You know, that may give you the peace of mind to know that it is time to proceed. At that point, so I probably wouldn't jump right now I just hold on. Continue to pray through it continue to save keep your lifestyle at a minimum, and then be ready to move sometime in the next year or two. With regard to refinancing the current property is just not good. It makes any sense to me unless you're going to stay there for probably at least three more like five years just the cost involved in the transaction of the refi is something you're probably not going to recoup even with these lower interest rates. If you're talking about waiting only 1 to 2 prop perhaps even three years so I hate your students are blessed to have you, Mark. We appreciate you listening the show and calling in a market you married. I am married yet. As you all beautiful woman as well. It peaked in my building as well. You one thing you do. You didn't mention you know you were talking about how you turn on the radio and there we are. III heard you were trying to drag us into your decision-making and therefore put on the onus on us. If you made a poor decision, but you'll one other aspect that's all about God that isn't necessarily all about numbers.
Is your spouse, and if you if if the two of you can't come to the point where your euro one mind about major decisions like this, then you probably shouldn't do it. Now, whether she understands Matt the way you do or not, that's not the point. The point is that God gives us spouses better half's if you will that complement who we are, so she may not have what you have. You certainly don't have what she has but the two of you together to make one complete person making great choices for God so you'll get that super consideration and we wish you the best as you work through it and we appreciate your phone phone call today. Thanks so much and Rob. I can't tell you the number of times when Martian I've sat down and talk about these things. Larry Rickett used to discuss it all the time. My wife doesn't know anything about money and finances.
But somehow she arrives at the right answer and you know he was passionate about that and how vital it is.
Well, there's rules for borrowing that Garon blue laid out very eloquently in his book, master your money in the economic cost needs to be less than the economic gain that you need to have a guaranteed way every payment meeting the needs to be collateral seek and selling payback but one of them. Seymour is don't borrow anything unless husband and wife are incomplete 805 five 7000 lines now they can ring if you have a question 805 7000 a wrong turn when it comes to money. We all clear financial potholes this month share of the magazine is all about helping you make money wise decision explicit articles to scare you right action. You are free magazine subscription is waiting for you. My wife got away #hi I'm very glad I'm here to help you understand how urgent it is a sugar for every opportunity to the eyes of a layman. Now is the time because it never been a time like this time when everything we hold onto for security is in motion, except God is the same yesterday today and forever because of what's happening today over 80% of all unbelievers are hoping there's a God who can make sense of the chaos and are looking for somebody to tell them about him that opportunity knocking. Nothing happens unless God allows and ordains it might be possibly got a certain date of this chaos to happen for the specific purpose of drawing unbelievers to him and if so how are they going to learn about him unless someone tells them unless you tell them churches are close to you my friend are the church today. You are Christ at Vassar and now the time to let your light shine in this dark and depraved. There is nothing more exciting than knowing God is using you to move people closer to join is not America.com.
This is anagram lots of daily life for daily living. Noah built the ark. We know he had never seen rain at this time it did not rain on the earth probably wasn't an experienced carpenter or zookeeper. It must've taken him 120 years to build. No must've put his whole heart mind soul and strength.
All that belonged and into the because God said so what is solution for loan know I would've had no time to be depressed over his isolated life in the midst of a wicked world. He was just too busy this Galatians chapter 6 verses nine and 10 says let us not become weary in doing good, for at the proper time will reap a harvest if we don't give up.
Therefore, as we have opportunity, let us do good, all people we find meaning is God himself shares on loan probably worked for him every harvest. This is anagram lot and here's a great deal more about our money than most of us imagine Jesus is more about our use of money and possessions and about anything else, including both heaven and hell in managing God's money 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 in the store moneywise live.org talking turkey today financial turkey moneywise live question for Rob. Anything financial, anything related to Thanksgiving ice balls. That's we were getting an early start, but why not 800-525-7000 you know Rob a number of years ago a long time ago 10 years ago or something.
We had a turkey farmer in the program and we talked about turkey farming. The prose that comes the financial ramifications and how the sale of turkeys impacts the sale of dressing or stuffing or whatever you happen if anyone listening right now is a turkey farmer you can provide some turkey expertise give us a call 800-525-7000. Rob is not even looking, but I know I can tell Rob is shaking his head right now thinking I will. He pleased. When I lay off the caffeine after 3 PM. My head is shaking. It's amazing how you do that well. I can hear the rattle Chicago Illinois Lane. I know you been holding a long time. Thank you for that. How can we help you help me greatly. I'm sure a good last year and we have husband and I and I don't table daughter and he opened the joint account and you know putting money in there for her and the company views with fidelity and they I have advisor there and they're recommending I get a well management company to manage the trust because we want to move that money and from the joint account to the trust we created for her and they say I should get a wealth manager because my former employer partner compensation and what and they said I have way too much of that one stock as part of my all of our assets and their scope of the plan to sell it and when I type talk to one another.
One in that they want to charge like 1% a year to manage those two accounts, which equates to about 15,000 a year and I just don't know if that's not my ship jump into, and I actually like the stock and I kinda want to spell it either but I need help yeah swelling.
I can understand how you would get that price tag when you calculated how you think that's a lot of money and you're right it is a lot of money and yet what you have to think about is being able to steward those resources in those portfolios go is a huge task, and the Bible is very clear on a couple of principles. I think that relate to this one is the importance of having wise counsel and I think that would speak to the nature of the type of relationship you're talking about here we have an investment professional who is charged as an expert to to oversee and invest these assets for you and the second is the principle of diversification found in Ecclesiastes that we don't want to put all of her eggs in one basket. We want to put our portion in seven or even ate the idea is we don't want everything at the risk of one particular company. In the case of an investment or one particular investment class and so as you look at that, even though the company ended. I don't need to know the name because it doesn't matter. Even though the company perhaps is done well in the stock is done well with it.
There is risk there because if the company has a bad quarter of the company makes a mistake. If the company well to give an example.
Enron might be a company that you may have heard about years ago and a lot of folks that were within Ron had all of their retirements tied up in Enron stock.
Well we know the end of the story. It's essentially in a blue up because of all that was going on inside the company fraudulently and a lot of people saw their retirements evaporate. Well, if they were diversified among not one or two or five companies, but hundreds of companies with a large retirement account. Then, if you have one that fails or has a particular problem or is a period of decline over a number of years. It's offset by the overall growth of the portfolio and that's the whole idea behind diversification. So I think there's wisdom and you not being what's called highly concentrated despite your affinity for the particular company in the pre-in the past performance and secondly I think there is real wisdom and having an investment professional to manage this for you and if were talking about a portfolio between one and $2 million all in 1% is a very appropriate management fee and I think you'll get your money's worth in the sense that you have somebody looking after this making the investment decisions with your goals and objectives in your your daughters in mind, specifically related to the trust and that would absolutely be the direction I would head.
I would absolutely though, make sure you interview several investment professionals and I would consider there in Chicago. I'm some certified kingdom advisors and if you need some another name or two to consider. You could go to our website moneywise live.org click find a CK and then put in your ZIP Code, but is that helpful to you. Lane my mind that price tag that's now grow more. I did manage at the time for free yeah I agree I need to get somebody certainly know that well and I think you get a lot of peace of mind knowing that it's not all writing on you or one particular company and that you have a team of people or an individual whose professional that can really take responsibility for this moving forward and were grateful to the Lord that it's done well, but I think now is the time probably to entrusted to some wise counsel, but we appreciate you listening and calling today. Thank you and God bless us go to Tennessee hi Gary, how can we help you hi Gary with us today. Oh, they're okay Gary jump right in.
How can we help while walking three and I sell my house right like to tell my doctor probably get about 1.7194 and grandma Watts passed away last year and 74 to get closer Ian to get out the got shot in the law to work out here for about well I can have. Anyway, I guess. Long story short, I want bath townhouse but are hard to come by, they sailed out as fast as like, market, and the house probably still shortly will click both houses in the neighborhood sold in a week what my question is I want get along to come down on the other house and going in and bought a house, get get us all very authorization. For all syllabi. So anyway I wanted to do that but what I wanted to do is much do you think about $50,000 I can put down if I need to like $200,000 or $200-$220,000 home yes or a townhouse in fact fairly quick but what I need to do is find out what, won't on they get so that it wouldn't be any problem.
My paying all with the spell of mild white. Yes, this Gary MMI understanding correctly that you own your current home outright. Okay, so you'd be getting a small mortgage sure well would be a sizable mortgage because you be putting down 50 on 210, but essentially you'd be able to come in and pay at the pay it off or pay it way down as soon as you sold it a couple of things there number one. I think this is wise because you're probably not going to get a contingency on that sale as quick as things are selling the townhomes I'm talking about the probably not get to do it.
Contingent upon the sale of your home. One option would be you go ahead with the sale of your home but you put in the closing documents that you have the right to rent it back for a period of time for maybe up to six months at least several months for you to have the time to stay in your property and then go ahead and close on it you're renting it from the new owner and then you only move once in the new property that you would buy during that period of time that you're renting. If you didn't want the expense of the new mortgage and the you know the hassle of that that would be one option and then that way you'd come in and essentially be a cash buyer for the new property or at the very least, you get a very small mortgage.
The second thing though is if you decided not to do that, read, read it back and you want to go ahead and get this larger mortgage. You just need to make sure there's no prepayment penalty but your you're not really gonna find mortgages these days with prepayment penalties.
That's really just not a common thing you need to ask, but you won't find that to be a problem. Does that make sense though. Yeah it say about house for 190 to 200,000. How much would need to come down. Well you could find a mortgage, you know, almost up to 100% even though I don't recommend it. So you know would be very easy. Assuming you have the income to support it. And that's really good to be the key there to look at those ratios of your debt to income. There can also to make sure that in the event this property didn't sell. I realize you will have the money to put into it as soon as it does, but they're gonna look at your cash flow apart from the sell this property and want to be able to justify that mortgage, assuming you have the income or the assets to support that then you know you wouldn't have any problem getting mortgage it with 10% down so that be in a 19,190. So with 50,000 available.
You'll have plenty you go way over 20% which would be great.
I think the only thing to consider, though Gary is if you come in and you make a big down payment when that property sells.
Keep in mind that mortgage payment is gonna stay the same until you pay it off and it goes away unless you refinance so it's a you have $150,000 mortgage for the sake of argument, you come in and you put 125 down. You only have 25 remaining but your mortgage payment didn't change, so you need to be able to support that mortgage payment with your monthly cash flow until it's paid in full.
Hey, I hope this is not helpful to you. We appreciate your calling in today so sorry to hear about your wife's passing will pray the Lord gives you some real wisdom here and David will Gary got bless you sir, thanks very much. And with that I think I hear music which means they want me to wrap it up so moneywise live is a partnership between Moody radio and moneywise media for Rob last time Steve Moore.
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