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December 3, 2020 7:03 am
One knows that money is good gives you peace of mind and repairs for what lies ahead is another thing about saving sometimes it's just not fun to save yourself to put off buying something until later.
You can make saving enjoyable.
Today financial planner and future Rob West has some ways to do just that. It's your call.
Any financial topic at 800-525-7800 525-7000 four saving fund that's nice right here moneywise.
No question that some people do find saving enjoyable and as a result, they're often pretty good at it. So what's their secret.
Well Steve, it requires an attitude adjustment and will get into that in a bit. But first we have to realize that God owns everything he owns us and our money so our job then, is to be good stewards to manage it wisely. According to his principles so that we glorify him.
The 18th-century preacher John Wesley said it best. He said Col. you can give all you can save all you can do that you have to accept one undeniable.
If escapable truth you must live on less than you earn. It's foundational and if you don't, it may seem like fun now, but you're setting yourself up for misery and hardship. I can promise you that's for sure and I just feel the need to point out that Mr. Wesley did not live near the mall but that's a topic for another.
Some things are easier picked. Okay, so how do we make this fun. Well, we've already started by realizing that it's not our money where responsible for managing it. But it's God's money, not ours. Deuteronomy 1014 reads this, behold, though, to the Lord your God along heaven and the highest heavens, the earth and all that is in it. You see that concept is actually Limburg liberating. I feel you got a grasp at first. You see, you are responsible only for wisely managing the resources God entrusted you. He's responsible for the outcome and the money is just a tool to achieve those ends that we don't just save to save true we do it to achieve certain earthly goals.
But first and foremost we do it to honor our Lord so we need to seek that sweet spot in the middle. If you will, between spending foolishly and worshiping our bank account or stock portfolio.
I think both of those things frivolous spending and reporting are covered actually in first Timothy 610. Here's what it says. For the love of money is the root of all kinds of evil. Some people, eager for money, have wandered from the faith and pierced themselves with many griefs. Okay, good. So now we have. I hope a fresh perspective on saving were doing it for the right reasons. Does that make it more enjoyable, more fun, but I guess I would say it's a good start, but not when we take it a step further, our friend Ron blue, the author often talks about what he calls the consumptive lifestyle you go through life acquiring things you can't afford to satisfy yearning.
The yearning is real.
We all have it, but it can never be satisfied with money and possessions that only comes from deepening our relationship with Christ.
So instead of thinking of yourself as a consumer, it's interesting that the world has given us that term instead replace that word with Steward that your true calling and you can make stewardship in saving fund. Here's what I would say perhaps make a game one personal-finance writer actually uses the term game of vacation. For this you see in a video or a board game, you have certain challenges and you get rewarded when you overcome them. For example, one challenge could be finding ways to cut $100 from your monthly spending. You can do that any number of ways you could bring your lunch to work, you could perhaps switch cell phone plans, or even the dreaded cutting of the cable cutting of the capon something holiday or something right. So where does the reward part coming well in a board game.
The reward isn't real, but when you start putting $100 a month in your savings account.
The reward is very real because you have the satisfaction of knowing you've taken a positive step toward turning things around that you also make the reward real by setting milestones along the way and celebrating when you reach them. So for instance when you have $500 saved. Let's say treat yourself, maybe dinner out as long as it's within your budget. Don't use that savings and keep going with those milestones. What you have $1500 saved yourself again frugally about your ultimate goal is to have an emergency fund with 3 to 6 months living expenses in it. Once you have that, though I guarantee you life will give me will seem a lot more fun. Don't get all choked up over it. I was there for second but now looking back and chat some more and take your call still in anything. Anything financial 800-5573. I need some help. Sometimes if you like I can't get a handle on my money. I mean where is a no go. It sounds like you need to moneywise help you plan your magic and track your spending three dollars you spend every morning on coffee every morning and also get access to free difficult financial advice sounds awesome. Let's do it. Okay, searching for moneywise any abstract moneywise.org you have money in a retirement account for just a general investing.
You know, the stock market can sometimes be like a possible to enjoy both profit and peace of mind and investing no matter what's happening. You can see a short video webinar on sound mind investing.org since 1990 sound mind investing his thoughts offer financial wisdom for living well sound mind investing.RG. I'm amazed how the wise words of along posting such relevance today.
I am Johnny Cincotta and recently I was battling a war against worry my recent pain levels happened to read these words by Francis of Assisi hundreds of years ago.
He said please do not look forward in fear to the changes of life rather look to them as they arise. God is very hard to deliver you as You in the past and will lead you safely to all things, and when you cannot stand it. God will bury you in the concerns tomorrow he will either shield you from suffering or failing strength to bear good advice and I have no doubt God inspired Francis of Assisi to write all it was. Jesus said, please be with you and peace be with you today as well friend that is robbing you of freedom and peace of mind. Christian credit counselors can help where nationwide nonprofit counseling organization has helped over 3000 individuals in the last 27 years get out of credit card debt 80% faster while honoring that data and phone to learn how Christian credit counselors can help you visit Christian credit counselors.org Christian credit counselors not call 800-557-1985. Have you lurking out there this is moneywise lives working on this side of the phone. Let's rob last time Steve Moore and were here taking your phone calls today on any financial topic at 800-525-7000 jot that down, give us a call 800-525-7000 we talking about some fun ways to save money. The only thing I could come up with where I was maybe a putting peanut butter and jelly in your wallet and then every time you reach in there for a 20 who doesn't like peanut butter and jelly. What world that's Yasser Marsha said she is staying on your genes and I is the last assets and any thoughts for us before we go to our Facebook question of the day. Well, perhaps maybe a few more practical suggestions on making saving fund don't count on yourself to actually do it you if you have to consciously consciously I should say move money from your checking account to savings you'll come up with lots of reasons not to do it. So here's my advice make it automatic that set it up with your bank to make an auto transfer from checking to savings every month. I like the idea out of sight out of mind, it'll just happen in the background. The next thing I know you'll have built up quite a nest egg bear of emergency fund so automated and then the other one is sign up for our brand-new moneywise app. If you haven't downloaded it, do it today.
Perhaps you can even stop right now. If you're driving pullover. Home or the office plot that smart phone, go your app store. Whether it's the Apple App Store the Google play store type in this type in moneywise biblical finance what you downloaded. Here's what you can find what I believed to be the very best digital envelope system I've ever used. I couldn't find everything I wanted and all the other products out there. So our team spent eight months world-class developers. The tilted it's everything I've always wanted in the digital envelope system all your transactions download automatically you track everything you can plan ahead.
It's all there, and it's all automated for you, but the other thing that's great about Steve not only can you listen to this broadcast and all of the archives, but the community tab is a great way for you to engage with other moneywise listeners and I'm in there periodically responding to your questions are moneywise community sharing ideas with each other, including ways to say so check it out today. It's a moneywise app and you can find it in your app store and other community thing. I like the community thing do you meet other people there. Here's what I'm going might it be some kind of a dating app. No. No.
Is moneywise live she likes moneywise live, you know it's really all I do. But that's not what it's for all asking questions, sharing ideas, encouraging one another to be biblical stewards, but we know a girl named Melissa. She lives on the West Coast.
She's 24. She just got out of college, chimed and went to let it go there.
I our Facebook question of the day is what tricks you learned to save money and Lorena says I save an amount after ties. But before paying bills and giving to my favorite charities.
I also save my change from purchases and I purposefully purposely save the discounted amounts from using coupons. It all adds up and helps my savings to grow what you have to well at C Susan said I ask myself when I see something I want. Will that really change my life for the better. The answer is almost always negative, and then Scott had a great idea Steve, you see that what you got. I see that yeah this is this is inventive. He says I take $20, $50 or $100 bill each paycheck. I put it in an envelope and put it in the safe. I now have $7800 in my mouth a fence available yet as that number grows, I am less inclined to spend so that's great. And then Mike took my advice here and obviously he implemented this before. I suggested it, but he's automated his savings.
I love it so uses payroll deductions for retirement savings. Of course, automatic deposit and automatic bill payments that allows them to invest every paycheck while never having to pay a late fee or credit or any credit card interest whatsoever so automating is the key there for Mike and then finally Lisa. She says automatic withdrawal for my checking's the savings monthly as well as company matches to the 401(k).
She maxes it out.
So these are great ideas. I think the theme here is be intentional be well-planned and automate, automate, automate, yeah, and no one lost sleep at night worrying about the money they saved no left of us lose sleep at night worrying about the money we've spent or invested poorly, but no one has lost any sleep worrying about the money they save so thanks so much for contacting us today in regards to your suggestions about creative ways to save and if you have any more, please feel free to a put them up on the moneywise site and if we have a chance will read some more today right. Here's our phone number 800-525-7000. We begin by going to Omaha Nebraska and John, what's on your mind today sir, are law allowing and warranty but now I'm getting at. You want to refinance your company in California and not I would like to lower the glory wanted to have another credit either you get letters in about an hour going okay yeah no I hear you John and you certainly don't want to jump at the first option is provided to you whether that somebody soliciting you for the credit card replace your mortgage or whatever that might be. That's usually not going to be in almost every case, the very best that you can do, but it doesn't mean that that prompting.
If you will, isn't a good incentive for you to go out and look to see if you can improve your situation out.
What is your current interest rate on that car and what is your credit score Dino are lowered are not a parent 16% did you say for the car.
Yeah well yeah that's really high and how long you have left. What is the term for many months remaining on the payoff. I have Colin Powell be started another four years or so okay well that interest rate is is really high mean that's higher than the average credit card right now so you are going to want to take a look at an opportunity to improve your situation but I wouldn't go with that unsolicited offer. The came in the mail so the first thing you need to do. John is continue to focus on trying to get your credit score up. That's obviously going to come by paying down debt as quickly as you can, being on time payer every month is the most important thing not authorizing additional credit poles, not the ones you initiate because you're checking your score. Pulling your credit report that the ones you authorize a lender to pull for the purposes of determining whether or not to extend you credit you can want to get your credit utilization down, meaning the balance owed versus the credit that's available. Those types of things are automatically over time going to improve your situation. Now, as that score begins to take up other place I would go to shop for a better rate.
I don't want you to increase the term I want you to match or decrease the payback. But you can certainly look for a better interest rate much better than 16%.
You want to go to bank rate.com bank rate.com just click on auto loans and you'll see the lenders probably many of them online lenders that are the ones that are offering the most competitive interest rates night rates right now for used cars and then go and check those out before they even pull your credit, they should be able to tell you what credit score you need to qualify for the most competitive rate. John, thank you very much.
We wish you the best with that quickly Orlando Florida not to what Randy will come back and chat with you for it in just a second.
I know you have a question about owning gold and will come back and chat with you about that Mary. In Florida you got some that we can talk you about that don't go away and then Lisa get up after that. This is moneywise live with Rob West will be back with more after this. Buying a home is the largest most nerve-racking purchase.
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You can take advantage of navigating the mortgage mates by Dale Vermillion help you clear up the confusion on rack your nerves and make the best mortgage decisions possible with confidence navigating the mortgage maze available when you click the start firstname.lastname@example.org it's everything to match the truly understand the brilliant nature of the Lord of God in the way he is written language and we will reveal to us one day when we just come into complete knowledge and realize what we were holding in our hands in the way because he is the word we are told to logoff the word can turn a word, the word of God is literally written in our Hebrew language in the Greek language, we can see if we can read it like it is. We would be so see what God is doing and this is the place where he switches under the inspiration of the Holy Spirit given to Jeremiah Jeremiah switching a word means theories or carry you where we experience now that faith has come online experience. More than 2021 career for your giving Christian foundation and your family to learn how moneywise.org moneywise live with Rob West taking calls and questions today on anything financial and investing more.
Save giving to the kids or maybe it's Christmas shopping. Let's chat about it.
800-525-7000 Orlando, Florida.
Randy what are you wondering about today sir Ray Ray Florida degrees got right now so you could explain. I got a couple people but but gold what the advantages in the district and investing in gold and ugly things that go by Golden problem explained advantage of in a different bank and Montgomery don't want to invest in gold.
We talk about what buyers were talking about Michael Barth talk about gold coins best way that just a layperson, into your gold yeah absolutely well, and precious metals like gold and silver have been used is what's called the store of value for 100 hundreds of years of the value of gold doesn't depend on currency or government or company so buying gold is a way to protect or what's called hedge against losses on other investments like real estate, stocks, bonds, even if effects of inflation so investing in physical form in the form of bullion coins does have disadvantages and advantages of the other option would be investing in like a tracking stock. So for instance there's ETF's exchange traded funds that track the movement of the price of the precious metals in this case gold so example would be the ETF GLD you could buy into that ETF and basically the idea is that that is that it moves with the price of gold as it moves up and down, but it's very very liquid as opposed to taking physical possession of gold because you can sell at any time the stock market is open, you can place a trade in and liquidate your position, which obviously is not your gold is somewhat illiquid in the sense that you gotta find a dealer. In most cases which may involve a premium that increases the cost of it above the actual market price when you're buying or selling.
You may get less than it's actually worth that because of that the dealer that's actually placing the trade for you. You know it doesn't have a great historical return you if you look at stocks and bonds over the last hundred years you compare that to gold gold to be more volatile and you'll have less overall return. Even though them. Like we been in like this year where we were in the midst of a global pandemic and all that comes with that. Obviously the price of gold is gone up dramatically, but just if you look over the long haul. It's not going to do as well in fact that Rich is providing research today not pulled an example where over the last 200 years long time. You put 10,000, and gold 10,000, and bonds 10,000 in stocks.
The gold would only be according to this study, 26,000 words. The bonds would be 8 million and the stocks would be part 5.6 billion now that's obviously a dramatic example but I think the idea is depending on you. What long term time. You're looking at your going to see that the gold will not do as well is well diversified stock and bond portfolio.
The other challenge of God. In addition to the physical storage and the safety is gold only earns money when you sell it, so it's not like an investment that can generate an income for you like a dividend paying stock or a bond while you hold it, even real estate can generate income.
If you have an income producing property. Where is gold. You only benefit when you sell it.
If in fact you can sell it for more than you bought it for. And then there's the tax treatment which is not terribly favorable so I think for all of those reasons I'm not a big fan of overweighting in gold. I would say for the average person look at a 5% allocation to gold in a well diversified portfolio and I would do it, not by owning a mining company, or even taking physical possession.
I do it by owning one of these tracking stocks are exchange traded funds that moves with the price of gold very liquid but still provides that hedge against a falling dollar uncertainty in the market are in the world and and against inflation as well. Randy, we hope that helps you and that your friends heard that and you guys can make kick it around a little bit were not the end-all in the be-all of of gold expertise here, but we've both been involved in watching over the long the last 30+ years and that's kind of what we seen and that we think it's a reasonable position to take, and again were glad that you called today. Thanks very very much. And for those Rob who were really concerned about the markets and they typically people move toward goal because they're really concerned. They want something that's ultra-safe then what would be your recommendation. Well, you know, I think you know when it comes to the market sidelong time horizons are always good when the Bible talks about steady plodding, so we should be diversified like we read about in Ecclesiastes and we should take a long view. We should also keep it simple. In my view and not invest in things we don't understand or can explain to a family member or friend. And when it comes to gold. I would just not overweight. Don't get caught up in the mailers and the things you're seeing online and even on the television. I would say take a proper allocation 5% and keep it in your portfolio.
For the long haul. It makes sense to me his phone number 800-525-7000 like to know more about who we are what we do what we provide. You can visit us online. Of course it's moneywise live.org moneywise.org way to connect with a coach in your area. Also to connect with a kingdom advisor in your area that and much much more. When you visit. Moneywise my old sheet. Thanks for being there today don't go away. We have lots more coming up this is moneywise. How should we as Christians think about investing. 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 designed investments for performance and a 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 email@example.com Christian healthcare ministries enables believers to meet their healthcare costs affordably, biblically and compassionately is not insurance but a voluntary cost-sharing ministry based on the biblical example of Christians sharing each other's needs and members are defined under the law for not having health Christian healthcare ministries might be your health cost solution call 800-791-6225 or visit CH ministries.org hi my name is Ryan and I'm a communications major at the movie five of the radio week is found in Micah 5. Though you are small out of you will come to me. One of Israel's origins from old ancient time.
That's Micah 523 the Moody radio week all want what is best for their children. Knowing how to pray for them can often be as challenging as knowing what to bring. I'm hosting Moody publishers waiting for change podcast I challenges you pick up your copy of publishers conjures a great deal more about our money than most of us imagine Jesus is more about our use of money and possessions and about anything else, including both heaven and hell in managing God's money, author Randy Elmer and breaks it all down in a simple, easy to follow format that makes it the perfect reference to what 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.John Scott Arbogast Bush blames from Walmart or Southern California canyons today one of several places that is burned their homes and forced residents to flee that submitted the risk for most of the region that prompted utilities to turn off power to hundreds of thousands of people they biggest blaze began late Wednesday at as a house fire and Orange counties Silverado Canyon guess their topping 70 mph Capitol Hill's top leaders have spoken about, 19 really for the first time in months. The conversation between House Speaker Nancy Pelosi and Senate Majority Leader Mitch McConnell adds to tentative optimism that in a package might also break free stocks finishing mix that allocated 85 points. The S&P dropped to this is SRA news lies. Five and God spoke to hopefully have your life and the lives around 800-525-7000 is our number, let's go to Florida once again hi Mary, thanks for your patience and what your situation, we might have about $400,000 and in a 401(k) through his employer.
I had about 7000 and we had about $71,000 on our home we have two kids in college one still lives at home.
The other one will be home briefly but will be leaving again kick to go back to college right about $30,000 in credit card debt. My husband and started business and it failed and he took out credit cards in his name.
And so it all falls on not found that my question is that should be take money out of the 401(k) to pay those credit card bill, let me ask you, Mary. Have you all, rectified the challenge that got you into this credit card debt. Are you living within your means. Right now we only have my husband and our spot one of our boys has a lot of medical issues. Actually, I'm taking the new medical exchanges over the years we've learned to really be really tight with our money to the point where we really think that should be done to our home. We haven't done the customer always get out. We know that something could happen and we may need money where your ages 52 okay and are you able to send anything beyond the minimum payment on these credit cards right now and we do it we made really, really think that now in the last six months. What would you say over the last six month on average are sending over and above the minimum probably hundred dollars extra on each.
There's really only three credit cards. One of them. I was able to transfer to a 0% interest, but that has about six more months and $9000 on okay well I'm glad to hear that this is just a consistent pattern of overspending and obviously medical issues are real they can be very costly, you learn to adapt to that, knowing that there could be additional major expenses on the horizon and you also learn to live frugally, which is going to be key I having a spending plan is important for anyone, but certainly in your situation. It's good to be critical to have a written plan that has all of your fixed and discretionary spending at it that's well thought out that even accounts for those things that are nonrecurring and comes a few times a year and then having a system to control the flow of money in and out. I love the envelope system, whether it's on paper with physical envelopes or digital like our new moneywise out but having a system to control the flow of money is really key so that you can free up margin over and above the bills and the discretionary spending that you can use first to fund an emergency fund.
If you don't have one getting that up to at least a 1500 $2000 you got something to fall back on, but then taking it really the bulk of it. Beyond that, if not all of your margin and really attacking these credit cards to try to get them coming down quickly. I don't like the idea pulling out of the 401(k). It's just very expensive money you.
You'll both have 10% penalties on anything you take out of the 401(k) because you're under 59 1/2 and then it's all gonna be taxable so you could have a 30, 35% haircut on anything you take out right off the top. That's just a lot of money, not to mention it's no longer there working for your future.
Now I realize the credit card interest is significant when you're not playing the balance transfer game so I don't take that lightly, but I just would like to see a 401(k) is a real last resort. So you go from here. What other than really focusing in on that spending plan and doing everything you can to try to free free up more margin. I'd really prefer you consider as a next alternative if you haven't already.
Mary credit counseling program. Basically, these are predetermined lower interest rates that your your credit cards would be reduced to one fixed monthly payment that fits in the budget.
It doesn't decline with the balances so the lower interest rates plus the consistent payment every month is a lie. You going to lie to pay these up 80% faster back to drink credit score credit counseling does not factor in your credit score and I have a wonderful organization that we partner with code Christian credit counselors that I would go next. So I would check in with them their wonderful godly people. You'll find them in Christian credit counselors.org check out their website. Read the reviews give them a call to help you set up that budget and then they'll talk to you about the benefits of credit counseling for this debt. Mary, thank you very much. We wish you guys the very best 800-525-7000 actually all of our lines are full right now but that nonetheless now you have the number may be for next time around Chicago, Illinois Lisa, how can we help hi thank you for taking my call and got black. I'm trying to figure out when the optimum time is to apply for Social Security 64 in May my full age is 66 1/2 I've got for loading margin been drawing unemployment. Ever since then, so I need to understand me know if if it is a help or a hurt if I start to take Social Security now.
Oh well, there's not demeaning impact Lisa on your unemployment collecting unemployment insurance doesn't prevent you from receiving Social Security retirement benefits or vice versa.
The same holds true for spousal or survivors benefits you claim on the earnings record of retired or deceased worker and so receiving both benefits won't affect either mount it with just a minor exception, and in Minnesota.
So really the question for you is whether or not now is the opportune time to take it and that's really gonna come down to number one. Do you need the money. That sounds like you might now getting to full retirement age is going to get that full check for the rest of your life as opposed to it being decreased and then any every year beyond full retirement age that you way it's going to increase by 8%.
You'll lock that in up to age 70 that a percent increase every year you like that and for the rest of your life and that's always just a function of math right if the Lord tarries and the question is, how is your health and based on your life expectancy, which once you reach age 65 as a woman you have a life expectancy of about 83 so it increases once you reach age 65.
Again, on average, but you gotta look at your own health and I would start with what is your financial need. Do you need that money if you do I'd say take it and you start using that for the purpose for which it was intended to really offset your expenses in this season of life. But if you don't, you have other means where you can delay it.
Obviously, you know, the longer you live, the more you'll benefit from having that higher check paid out to you growing by 8% a year for every year you wait so I think those are the considerations you need to ponder right now but good news is it won't have any impact on the employment Lisa, thank you very much will. Glad that you called in today Laura in Hawaii were coming to you next. Also Luke in Chicago and Andy in Huntley, Illinois. All these folks lined up a come back and chat with them in just one moment you're listening to moneywise live be right back. Please stick around. I need some advice questions about planning for retirement. Long-term care insurance. I don't know where to start. It sounds like you need to moneywise help you find answers and you can ask your questions with any helpful articles and moneywise podcasts sounds great money. Okay, searching for moneywise and moneywise.
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This is Max McLean, Jesus first miracle was driving out demons. What was his second miracle. Listen to the Bible from Mark one. As soon as they left the synagogue, they went with James and John to the home of Simon and Andrew Simon's mother-in-law was in bed with a fever and they told Jesus about, so he went behind and help the fever left and she began to wait that evening after sunset, the people go to Jesus all the second demon possessed the whole town gathered at the door and Jesus healed many when various diseases also drove out many demons, but he would not let the demons because they knew who he was from Mark one listen to the Bible so to hear more radio Bible.org.
Would you like your life to be infused with joy. Would you like to interject in Col. dimension into even the most ordinary day. Mother, Randy Alcorn says you can when you discover the treasure principle and a concise powerpack style is newly revised and updated book offers a six step plan to finding the pleasure and eternal voice of the treasure principle what you discover. Life will never look the same treasure principle is available when you click the store, but moneywise live.this today lies in the of Hawaii and hi Laura, thank you so much for holding as long as you have, how can we help for taking my call. A little background I'm 70 years old I relocate agent I would like to retire.
I just sold my principal residence and so I have about hundred 70,000 and from that I moved into my rental house which I about hundred and six on and I'm staying here for about six months while I picked it up and I want to sell that and moved to my condo on the island which I owe about 104. My question is I was going to take the money.
Most of it and put it in like an Edward Jones account or something like that so that because I'm going to need it monthly income. I have Social Security and a tiny little pension all that comes only about 2000 need to draw like $1500 a month that when my question is do I pay off one of these property or do like to keep the house while I'm working on it and sell it paid off and deal with the condo or do I take the money and pay the mortgage on the condo shirts so give me a rundown of what I know. That's okay I think I followed you tell me what the proceeds were in the home sale hundred and 7070 and what you own the condo hundred and 604 and I'll hundred and six on the house. I'm sorry what you think you will sell the home. Your urine right now for about 225 okay so you end up with another 80,000 to add to the 170 C of the quarter million dollars available and once that the home is sold, you'll have your condo which you plan to live in.
You know during this next season of life correct that correct okay so if you were to pay off the condo at that point, that would still leave you hundred and 50,000 roughly. And you'd be debt free.
At that point, which means you didn't know longer have that mortgage that you plan on that hundred and 4000. The challenges that yell at hundred 50,000 if we look at 4% a year.
Even 5%. That's only $7500 so that B6 25 a month that I'd be comfortable with you pulling out with a well diversified bond portfolio with probably a small allocation to stocks is can be very stable focused on generating income and the idea would be that you try to offset this 5% a year so you never impact the principle that hundred and 50,000 remains the same in your pulling out 5% a year, $625. The challenges that's not going to quite get it done unless paying off the mortgage of the condo is gonna bring your expenses down such that 625 or somewhere near there could cover it. Do you see what I'm saying I don't have a 455 amount condo okay but but at least you get rid of the mortgage.
So I think that's the challenge. I'd like for you to enter, this next season of of life.
Laura completely debt-free because it just gives you ultimate flexibility it brings down your overall expenses which just means you need less each month to cover it. But I also recognize it's going to take a significant chunk out of that roughly 250,000 you have so I think my first choice would be we just put that money in the bank we go ahead and and you work on selling this home. Take the proceeds of the home once it sold and I'd wait for that and then pay off the condo and then take the hundred 50,000 and connect with the advisor you mention and deploy that into a well diversified stock and bond portfolio with a focus on income and get your expenses way down get into a position where you're completely debt-free and then you know build your budget around what you have coming in the small pension. The Social Security and the small amount you draw from as income off of that roughly hundred 50,000 and anything you can save between now and then moving forward that would be my kind ultimate objective. Now, if you'd rather take the core remain in a vessel thing and continue paying on the mortgage.
You could, I just don't think it makes a lot of sense because I think your your return objectives are going to be fairly conservative in this season of life and that compared to the mortgage that's probably a little bit higher because it wasn't in terms of interest rate because it was in your primary residence is probably not going to make sense. Over the long haul. I think you'd be better off just paying off the mortgage for me Laura. I think that some great advice that Rob gave you and I hope that makes sense and works out well for you. Thank you so very much if she wants to get additional information as you work through this process.
What's the best way for her to do that. Yeah, I think couple things. One is if you want to keep the mortgage or you can look at refinancing if if you save at least a point that would be a way to better yourself. I go to bank rate.com if you want to just bounce some ideas off someone or get help putting your spending plan together connect with one of our moneywise coaches at moneywise live.work. Thanks again appreciate that Chicago Luke what your situation. I understand you work at a church or perhaps you, the pastor Luke. Well what's going on there. Yeah. After church we are not 100 and about 10 years ago we saw God save a neighbor who had been drug drug addicted and homeless for about 40 years and it should been great to see him grow become grounded in Christ and now he's on staff, part-time as a janitor at our church. However, he's 69 now and did not work for all those years and so had very little saved and Social Security has no retirement and so I just wanted to hear your thoughts.
What might be the best creative way that we as a congregation can continue supporting him because he just can't physically keep working too much longer wanted to hear your thoughts.
Yeah Luca. It's an interesting situation. Unfortunately, as you said doesn't sound like is going to have the backing of Social Security, which could provide at least a modest no income, but if he doesn't meet the requirement in terms of the number of quarters that he paid into that obviously is not can be anything there for them.
So I think at this point delighted to hear you all taken them on your employing him that to the extent he has the ability to work. That's great. You will have a retirement plan at that church.
Well we do full-time people, but we could start one. I think so. Okay, I think that would be the first thing to look into his see whether there's an option without disrupting what you have in place because obviously anything you make available to one person. You have to make available to everyone in terms of, you know, if this were made available to someone on a part-time basis. He meets a minimum number of hours a week, but that would be the very best way to support him is to kick something into retirement for him on a regular basis. That's going to go in pretax and continue to build for as many years as he can work. Obviously I love the idea of making his need known as the members of the congregation get to know him and historian begins to see his heart and his work ethic. Perhaps so some of them would want to give individually give gifts to this person obviously they wouldn't get tax benefits, but now he there would be tax consequences for him as well. So whether that's through a go fund me or something like that obviously folks could begin to help and assist and then obviously anything you all can do to set money aside whether it's on a prettier approach to tax basis to be able to allow him to build up a nest egg moving forward would be ideal. I think this is a great example where the body of Christ is to be what you're even asking here today can really rally around this gentleman be an encouragement to him, but also be a resource in terms of helping him out financially. So I would check your see what options there are with the current retirement plan that you have today. And then secondly see what creative ways you might be able to come up with the making his needs known to the body just to see how folks might be led to respond. Luke would you please hold for just a moment our producers has some information they would like to pass on to you in the church and were really glad you called today and that keep us posted. We love to know how that works out with this gentleman and God bless you Huntley, Illinois, and he would have to make this real quick. We understand from our notice that your 80 years old I you're concerned about the price of things and maybe pending inflation is that kind of it that exactly.
It's far happy yeah what I would say you know the good news is inflation really has been fairly tame just because of a lot of the tools and strategies that the Federal Reserve has at its disposal. The Federal open market committee in terms of adjusting interest rates to keep interest rates low, but keep inflation in check.
You actually have to go back quite a ways to find inflation in the 4% range. I think you've got to get all the way back to the other early 90s to see anything with a four handle on it. Beyond 91.
Nine. Inflation is been three in the threes or less and you last year in 2019, less than 2%, just over 2%. The couple years before that and basically flat 2015. So yeah, I'm encouraged that you know the we have a Federal Reserve that has demonstrated over a long period of time.
Their willingness to really keep inflation in check. Even though some areas of the economy have grown faster than others. Certainly in the healthcare space that college tuition would be another one you mentioned cars here in your notes and we certainly seen some of that so I think the key is to always try to live on less than you make. So you can keep your money working for you because purchasing power is key in terms of as inflation even modest inflation is applied year after year the spending power of a dollar declines, which is why we need it working for us and that can be challenging in this low interest rate environment, but the bottom line is I think as long as your following biblical principles recognizing your role as a steward and doing everything you can do to manage God's money.
We leave the rest up to have because it's out of our control and he got bless you what glad you got through today.
Thank you very very much for listening and I think you for listening Oliver moneywise listeners coast-to-coast. This program is a partnership between Moody radio and moneywise media have a great remainder of your day.
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