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No More 4% Rule?

MoneyWise / Rob West and Steve Moore
The Truth Network Radio
December 4, 2020 7:03 am

No More 4% Rule?

MoneyWise / Rob West and Steve Moore

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December 4, 2020 7:03 am

For the past 25 years, retirement investors have relied on the 4% rule to help them make plans for their future. But this rule—designed to help you stretch your savings to last your lifetime—is now suddenly changing. On the next MoneyWise Live, hosts Rob West and Steve Moore share the new revelations about this retirement savings strategy.  Find out what’s changed with the 4% rule on the next MoneyWise Live at 4pm Eastern/3pm Central on Moody Radio.


For quarter of a century. It was carved in stone rule that retirement investors rested their golden years on the 4% rule, but no it's no more always just asserting itself. I have some flaws today by Pres. from West shares that revelation. With this will take your calls and questions at 800-525-7000 jot down 800-525-7000 more. No more 4% rule last night stand before percent rule.

This news will come surprising but for listeners who may not be familiar with it will explain it for us was sure it first appeared in an article written by financial advisor Bill Bingen way back in 1994. The idea was that if you wanted to guarantee your retirement savings would last at least as long as you do, you would have to adjust your budget so that you never withdrew more than 4% a year from your investments. That was the safe maximum amount you could spend that you would then adjust that number upwards each year to allow for inflation and for more than 25 years financial advisors have encouraged investors to use the 4% rule as the rule of thumb, if you will win their planning their retirement okay. How did this Bingen fellow come up with this rule. What he says 4% was actually based on what he calls the worst case scenario that was someone retiring at the worst possible moment. Up to that point. October 1968. Just when the stock market reached its peak and was ushering in a lengthy bear market and just when a decade of very high inflation was beginning those combined factors demolish the purchasing power retirees so the rule took all of that into consideration the long bear market and runaway inflation by withdrawing a maximum of only 4% retirees would be assured that their retirement assets would last 30 years. Okay, got it right. But now Bingen has changed is to yes maybe because the worst possible scenario rarely happens. He says that if you take another starting point other than October 1968 how the results are quite different.

Factoring in times when stocks were cheap and inflation was lower retiree could have withdrawn a lot more than 4% annually, he now says the average and keep in mind that the word average at the average safe withdrawal rate was around 7% and I don't know that I'm comfortable with this but could've been as high as 13%. That's a huge difference.

Almost too much to believe really well. Keep in mind yeah that were not recommending someone would draw that much because there's no way of knowing the actual amount you can withdraw without hurting your principal until the year is over but to your point Bingen's numbers are credible because all of his calculations are actually based on a conservative retirement portfolio with 30% and the S&P 500 20% in US small caps like the S&P 650% in bonds that keep in mind that when you get to the season of life.

Some people may have more like 70% in bonds and that only 30% in stock so that would make the numbers come down a bit, okay, well, fair enough. But if he's throwing out the 4% rule. He has to replace it with something I presume.

So what's he saying the rule is now well you ready for it to whether any of the drumroll or not, but the new role according to bank him there it is 5% okay that's how much he feels retirees can withdraw annually from their savings without fear of running out of money and Bingen says he uses the 5% figure for his own retirement planning which is really 5%. That's it. Not a very big change. Well, not in percentages but in dollars. It could make a difference. Let's look at retirement portfolio of say $300,000 that the difference between a 4% annual withdrawal and a 5% annual withdrawal is $3000 or $250 a month. That amount could be significant for retiree trying to buy groceries or Christmas and birthday presents for the grandkids are even more giving perhaps to the local church. Okay so what's what's the bottom line here when when we come away with. Well to be honest I still like the 4% rule. There are many unknowns and we don't know how successful the Federal Reserve will be at preventing inflation in the future, or deflation, for that matter or what stock prices will do in the future, but we do know that 4% is safer than five for annual withdraws and I think that's what most people should plan for. So I would just say keep your expenses low. Save as much as you can, try to stretch this out and make it last as long as I don't mean to be offensive way, but I'm just thinking my head. Mr. Frank and himself getting along. The financial wealth you leave behind could be the best thing that ever happened to your loved ones or the worst in splitting hairs, giving your money and things to your children without ruining their lives. Ron blue explains why it's important to make these decisions now, instead of forcing your heirs to do it later.

Splitting hairs will foster a real appreciation for the precious resources that God has entrusted to you, and it's available. Click the start button moneywise If you're investing for retirement or any other goal you may be wondering if it's possible to enjoy both profit and peace of mind, no matter what's happening in the market. Sound mind investing is a short video webinar on that topic. Sound mind SMI has helped tens of thousands of Christians learn to be wise and faithful stewards in the area of investing profit and peace of mind matter what's happening in the market. Sound mind connect with your grand children here scanned the L4 gray matter link is a friend of mine who focuses on preparing his children and his grandchildren for the three most important decisions in life. These can help keep us on track is grant decision number one. Where will I spend eternity with your grandchild accept Christ as Lord and Savior. Nothing is more important. Number two. How will I invest my life. Help your grandkids become kingdom builders devoted to internal pursuits. Number three. If I choose to whom will I marry this will have a huge impact on many areas of your grandchild's life. Even if we don't see our grandkids every day. We can reinforce these important values and help guide them you can get more great tips and inspiration from our website.

Grandkids matter that are. If that is robbing you of freedom and peace of mind. Christian credit counselors can help where nationwide nonprofit counseling organization has helped over 3000 individuals in the last 27 years 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 Christian credit counselors.or call 800-557-1985, in case it's Friday.

If I'm not mistaken, and well you know sometimes just occasionally depending on the position of the moon in the sky we have something called the Friday five. It's hard to put your foot on hard to put your thumb on, but is just something that happens on a Friday.

That makes it always interesting, sometimes quaint, sometimes impactful. Nonetheless, it's Friday so the Friday vibe hobby on the lookout for it. Let let me know if you see comes in under the door quite often so caffeinated 800-525-7000. If you'd like to talk to Rob today about anything financial 800-525-7000. Bottom line, Rob. We were talking about how much you can take from your from your retirement fund and still have enough left over to help you make it through retirement course it would be helpful if you knew exactly how long you're going to live, and none of us really know that but still it's a lot mean authorities are suggesting that 5% is a realistic number and you're pretty good with that.

You know, I would still opt for the 4% that we've used historically but when you say the authorities. I mean this is the authority Mr. Bingen himself is the one who came up with the 4% rule, so perhaps we should take his advice and he's just saying that based on the way he designed this being really the worst case scenario, sky. Hi Scott, stock market leading into a lengthy bear market sky high inflation. You put all that together and for presents a number he sent. What's more realistic is something perhaps more like 5%, but hopefully just gives you a little more peace of mind. If you need to take just a bit more than 4% will what Mr. Bingen is really the authority and you're just parroting what he says why don't we have him here. Why are we talking with you. We had Internet and that it isn't fun, but no makes a lot of sense to me. Jim Jim's gyri guy in the background who really does all the heavy lifting. See what you can do about getting in touch with Mr. Bingen. I'm getting a high site.

I think that was the Hyson okay Wausau, Wisconsin and Jean. How can we help you for taking my call. Because you are God got married later in life, and I found out now that I have an bill I don't mind anything that you be for me to have to be used for any medical bills. I did talk to a disabled couple and what they did is they got divorced nature that's about at the house and most of the money and then she became the caregiver. What is your advice yeah well you know it's a it's a difficult situation.

I'm so sorry to hear about the medical situation. I would say first let's ask the Lord to intervene here. Miraculously, he is the great physician and will join you, Jean, and praying that he brings a touch to your body and that brings healing. You know, I think the second thing is, as believers, our witness for Christ. Has to be the priority and so you know, in my view, it wouldn't honor God to hide assets from the government or a nursing facility. If you need care in the future under Medicaid. Certainly, in my view, again not getting a divorce. In a situation like this, you are correct though states that the rules for Medicaid eligibility and in most states Medicaid applicant's pension and 401(k), IRA and other retirement assets will either be considered Jean and asset or as income. If it's an asset. It counts against that of course the asset limit if it's in a payout status and generating income. Then it's considered income and counted that way. Typically in the majority of states healthy spouses allowed to have up to hundred 26,000 in savings, but given the situation here would be worthwhile to visit with her godly estate planning attorney somebody who could help you understand the various tools and vehicles that are out there. Whether it's an able account Torah cannot trust special needs trust. Something like that that could be used very appropriately and it out. It could be used to it within the law allow full access to these funds and still full availability to Medicaid without providing any yield reduction in that benefit, but I think at the end of the day. I wouldn't be comfortable with moving things around in a way that either wasn't supported by the law or you getting a divorce. Just because you really under the Lord. I think I want you been joined together. We need to honor that.

So I think we need to just ask the Lord to bring wisdom here, and I do think giving getting the Council Jean of a godly estate planning attorney who can look at the various tools that could be used in the situation would be a next step, I encourage you to connect with a certified kingdom advisor there in a Wausau asked for referral to a godly estate planning attorney and you can find out one of those professionals by going to our website moneywise just click find the CK and you can interview at least two or three Jean we will be praying with you and your husband about this was so very sorry to hear about the situation but will pray that God really gives you guys wisdom and direction and good health going forward. Thanks so much for your call and Rob, this isn't the first time we've received calls like this and generally they're well intentioned by husbands and wives. They do intend to stay together as husband-and-wife to just trying to find a bit of a loophole. Not sure you know how God honors something like this, or even if he honors it, but it's one of those touchy situations. It is, it's challenging, I think, as you said, well intentioned, trying to protect God's assets. Remember it's God's money and you are the steward good news is that God is your provider right no one else. And so he said I can be trusted. So I think whenever we follow his principles and we do this we approach handling God's money, with the right heart attitude got a lot of that in this situation certainly is not out of his control.

He controls everything a right continuing on, by the way, here's her phone number were taking your calls on any financial topic today.

Love to hear from you. 800-525-7000 Elgin, Illinois, Linda what's on your mind called me three times, including (in our account. It's regarding supposedly any medical dental for hundred and $73. I'm not aware of any battle and I can't ask them to send me something in writing.

The second gentleman told me that he would have to happen in the gentleman today when I told him that I have asked for this in writing.

Small Claims Court and hung up on me right area and how can I be well that's fair debt collection practices. Linda does spell this out and yeah I don't think there's any exceptions in terms of estate where you don't have to be notified in writing. First, I believe you do. So if someone calls you about a debt without first giving written notice snail mail would typically be the way that it is sent to you I wouldn't respond at all. And I certainly wouldn't give out any from information know there are many scammers who pose as collection agents to try to trick you into paying money for debts that have already been paid, cancel, or what might be more likely even in this situation is debts that don't even exist in the first place, especially if this is not an account you recognize and and one that you've never had any information on the past.

So I would encourage you not to respond unless somebody can furnish you something in writing. One option would be lender that you could pull a copy of your credit report from each of the three credit bureaus because you can be assured that if you have a debt out there that's been sold to a collection agency. It would have been reported to at least one of the three bureaus in just about every case. So go to annual credit pull a copy of your credit report from each of the three bureaus. See if you see something out there but at the end of the day. If there's nothing there that said, causing a red flag as an old account that's been charged-off or sold. Certainly past due and delinquent and if nobody can provide you documentation as to what's there. After giving notice that I wouldn't give it a second thought. In fact, I would be quick to disconnect that phone line and hang up on that person who said telling you this information at the end of the day though, if you want to know this very specifically your rights. You'll just want to Google fair debt collection practices act, which spells out everything you need to know Linda thank you very much for calling in today. We hope that that's you're able to get that rectify without any additional angst in your life.

Thanks very much. One more before the break Of Florida MJ what's your situation that now we have about $40,000 were not really sure high tide. Not really sure what now have an IRA here. Kind of looking for a place that many are long-term art, and a couple years that we could pick it yeah well I think that's really the key here.

MJ is deciding what is the purpose of this money and if you really don't have clarity, I would just park it until such time as the Lord makes it clear. Perhaps there's some additional giving he want you to do. Maybe you need will present itself that you and your husband just several convictions you want to build respond to having that money ready to go liquid and available would be key and by parking at I use an online savings account there, paying only about 1/2 a point right now.

Will you go to Marcus or Ally Bank or capital one 360.5% interest, but it's protected it's safe, it's accessible and you can like a right at your checking account.

I would though begin to pray about this asked the Lord to give you some wisdom here. As you begin to set some God-given goals, beyond the long-term savings in defining how much is enough for retirement savings. What you said your fully funding and beyond an emergency fund of 3 to 6 months expenses. Really the only other options are additional giving or other savings goals and whether that's being able to buy a new car for cash down the road you're putting it away for a child's education. Something a little bit more medium-term and depending on the timeframe that will then determine the investment invested much of at least 10 year time. Do you know if you have enough money of house. Do you know how much is enough. If not, one blue can help with this book.

Master your money a step-by-step plan for experiencing financial contentment. Learn how to save and invest and give wisely to 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 to work.

So I verse 28. Conclusion this particular Hebrew name, chapter 40 help us understand when we would most accurately call upon God by the name.

This is the clay right here 40 verse 28 Isaiah 40 verse 28 do you not know her right to be just like a feeding IN your ear, and many of your other translations. The last thing God got to ever lasting Creek will not grow tired or weary understanding. 110. He gives strength to the weary and increases the power the week were teeth contrasting needed to hear you bring to you what you can't kill me for 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 starting point, trying to manage your money manager is according God will like a good place to start is to remember that God owns it all just a percentage of the McDonald's all of it and then he gives it a large portion of it to us to manage and that's with the principals in his word are all about and is so like I said a fun if you're wondering about how best to manage what he has how to spend it how to save it how to get it out of invested start with that principle that God owns all 800-525-7000 Chicago, Illinois, and Ruth.

We appreciate your patience. What's on your mind very much for your help and undecided as to what would be the best way to go. I was thinking about giving the qualified charitable distribution from my IRA but I understand that I don't have to take it this year so I was wondering if it would be better to go ahead and donated to the church or just leave it and it's take the amount that I would have donated from my checking account I see search sure with this year being a little unusual in that you don't have to take the required minimum distribution. It is slightly different. I think the key here. Ruth is you want to get to the best tax benefit because that's going to mean that the ministry has the opportunity to receive as much as possible and if this is money that you're not needing it now or in the future, meaning unless something changes and something comes out unexpectedly, then I think it's still a great opportunity for giving even though the required minimum distribution is not needed this year so I'm thinking that still a great opportunity for you to make a gift to your church directly out of the IRA using the qualified charitable distribution because this is money that will be taxable at some point down the road if it's not used in this way, and so I think especially with some of the appreciation that we've had in the stock market and ironically despite the year that we've had. The market is up significantly and you can still make a qualified charitable distribution this year. Even though the RMD is not required.

So I would stay right on the same path. Does that make sense.

Rather than taking it from my checking account and leaving the money and our yeah I mean you could go either way.

Obviously if you have money that sitting in checking that you don't have your mark for any purpose. It's not the money for emergency savings money that you need for something else. You know you could leave the money there, but I would say, given the year that we've had in some of the uncertainty that might be coming down the road. Hanging onto that cash and taking it out of appreciated investments makes a lot of sense to me. So I would probably opt for the qualified charitable distribution and hang onto your cash thank you so very much for your valuable information. Okay, Ruth, God bless you and thanks for listening.

Thank you very much Eric is in Chicago, Illinois, and you want to help your folks out little bit hi Eric, hoping to. They are retired there in the early 80s and they own their home but it needs a lot of improvements, new roof, plumbing, electrical, etc. I am looking for the best way to finance it's more money than we could come up with our own and so I don't know that he lacked possibility or other government grants, loans, something that would help. Sure you know what I would look at because it does very even by state.

I'd start and then I look at state and municipal websites for local programs. There are programs for low income elderly folks to make home repairs and so I would start there use the HELOC as the work home equity line of credit is Eric Investing is more than just returns. It's an expression of who you are and what you value is the way you invest your money reflect your identity as a Christian, and even tightly designed investments for performance and a better world. 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 best invest

Thank you from the bottom of my heart I could've had the procedure I needed without CHF's help sharing the bills that letter from a member displays Christian healthcare ministries purpose to glorify God and serve his people. CHF is the original noninsurance voluntary health filesharing ministry, enabling its members to share the cost of each other's medical bills, call 800-791-6225 or visit CH ministries or my name is Ryan and I'm a communications major at five on the radio week is found in Micah 5. Though you are small among out of you will come to me. One of Israel's origins from old ancient times. That's Micah 523 the Moody radio week are online to let you know about all things radio sign up to receive movie radio free monthly newsletter delivered straight to your in box exclusive stories, helpful articles and updates on what's happening at Moody radio and we just really ties now there's even more to discover each month. Subscribe today. My Moody movie radio. How did you feel the last time you made a not so good decision as pastor Andy Stanley points out our decisions, like the steering wheel of our life and so you get decision-making right you get life right in his new book, better decisions and fewer regrets.

You'll learn five critical questions to apply to every decision you make. So you can feel confident you're getting it right to request your copy with any gifts of money wise of $25 or more money wise lot VP Mike is the food and drug administration could approve first coded vaccines the week of December 14, with the first wave of Americans being vaccinated in all 50 states within 48 hours about approval bar remains high. The danger of that the unpredictable wind gust and dry conditions in Southern California crews are making progress against boys is that burned several homes and have injured two firefighters displays and Orange counties Silverado Canyon. Only 10% contained. California Gov. Gavin Newsom says most of his estate will likely be under new stay-at-home orders within a day or two on Wall Street, stocks remain higher than our 181 points last X 67 points higher in the SMP is ahead 24 this is SRA news that spending plan a.k.a. budget importance of having an emergency fund living within your means almost things to talk about but sometimes a bit more difficult to do at least kind of long distance.

However, if you're face-to-face with someone. Often they can walk you through these concepts in a quicker, better, easier way in hell a great way to do that is to connect with a budget coach and an even better way to do that is to visit our website moneywise, you'll find lots of useful information there including if you click on the tab connect with the coach and then you can find out how to do that.

How to do that speak to them directly with the verb either online or where through your your telephone so just visit moneywise to connect with the coach moneywise live.ORG let's go to Lorraine Ohio W CRF San Miguel what your question for Rob West in years prior to our children. All three years and all I got what 3940 and the company that I'm with now one cake program principal and they spoke about it like what I'm not happy to me to get for camp, I might not help to any site bookstore guy basically help me to little bit more and start like that for family Miguel well I love the direction you're on.

I love the fact you're participating in this 401(k) now with a systematic contribution that's can be the very best way to build wealth over time because coming right at your paycheck pretax being invested and will grow over these next number of years. As you press toward retirement, which is probably 25 years or more down the road. Beyond that, you're already thinking about how you can build something to leave an inheritance and perhaps do some more giving now and in the future, and so I think investing is certainly something we see modeled in Scripture as stewards of God's resources.

We should be thinking about how to put our money to work and really historically the very best place to do that in a passive way is through a stock and bond portfolios well diversified with a long time horizon, but getting wise counsel specifically, biblically-based wise counsel as a relates to how you do that. The real practical side of investing is another great idea Miguel.

So let's do this. I want to send you as our gift today something called the sound mind investing handbook, and I think it's exactly what you're looking for to give you all of the principles but also the practices of how you actually deploy an investing strategy for the long haul. In a way that's God honoring.

So again it's called the sound mind investing handbook and Miguel, if you hold the line.

Our team actually a mere producer today will grab your information will get that in the mail to you. Make sure you get that before Christmas San Miguel. This book is about 2 inches thick, but don't let that scare you off lots of wonderful information and the great thing is is that they written it for the average person, the lame and not the sophisticated investor necessarily so. Lots of good information there. All of it based on biblical principles and I think it will help you and bless you. Thanks very much for your call today. You stay on the line for us to talk you off there, Burnett, Texas Randy, how can we help user gentlemen, I thank you so much for thank you for all you do appreciate you earlier this year. I'm hoping there's hope on 55 years old came to pay for the life and also got responsible with money late in life possible. Had very little savings to speak of. Before coming to Christ.

I didn't say at the age when I should've saved and only start again serious last year and I got about $4000 in an investment account with a plan got a 401(k) from my job and I've only got about $10,000 in savings in the regular account concerns and some retiring and less than 10 years old and not that that I won't have a viable retirement if I start getting serious now. Is there any hope for a guy like me.

Oh absolutely Randy here's the bottom line as you begin to purpose yourself to follow biblical principles, meaning you limit your lifestyle you define enough you give generously and hold everything loosely trust God as your provider invest systematically living well within God's provision with contentment. It's amazing what God will do that. He's not a cosmic vending machine will be given, he automatically gives it back financially. EL he can bless us in any number of ways, but what we know to be true is that he is our provider and he said this is the one area you contestant when it comes to giving in and managing your money biblically-based what we know to be true for sure is that you put yourself in a position when you follow biblical financial principles to experience God's best in this area and my experience Randy is that our financial journey in many ways shapes our spiritual journey, we relinquish this one area that is often a competitor to Lordship this area of money when we release that to the Lord and put it under his Lordship along with every other facet of our lives my expenses as a ripple effect and so many other areas. I think the key right now is for you to really ask the Lord to give you some wisdom about how you should proceed. Set God-given goals. Limit your lifestyle. Give generously and be faithful with your margin, your access beyond your spending to invest that put it away. I think maxing out to your 401(k), which over the age of 50 you get a little bit extra that you can put in maxing that out will be the very best way to do that.

In addition, you can open a Roth IRA fund that is well again you can put an extra thousand in your Roth IRA this year because you're over age 50 and so that would give you 7000 you could put away and then if you still have more to do.

Beyond that, you could even look at an insurance product like an annuity of some kind that would allow you to put even more weight on a tax-deferred basis. I think the key is developing a plan right now.

Perhaps seeing if a financial advisor would come alongside you to do some retirement planning. So you have some confidence and peace of mind to know that based on the trajectory right now what you can expect when you get to that .10 years or 15 years down the road and then you order your life appropriately so that you can try to try to achieve those goals and I'm confident that you'll have quite a bit.

If you're diligent in saving and investing right now even though perhaps you're starting a bit late, so let's leave all that at the foot of the cross and purpose yourself to follow biblical principles from here on out, and I like to send you a copy of Ron blue's book, master your money. I think it will be an encouragement to you and allow you to begin to digest all of these principles is a relates to how you handle God's money Randy were glad to get through today and I love the way you concluded your question. Is there any hope for a guy like me sounds like the title to a great old country gospel song and is certainly a question that we could all ask when it comes to our position in life and God's position in eternity.

Is there any hope for a guy or a person or a man or a woman or a child just like me and we wish you the very best, Randy thanks phone number if you'd like to call.

We have a couple of open lines, now's a good time to try to get in 800-525-7000 805 five 7000. Is there a line for a person like me yes and there is call right now 800-525-7000 four moneywise five. You probably find your career even your strategy for your getting a Christian foundation and your family maximize your resource to learn is here to help me understand God's purpose for your life to the eyes of a layman, it seems everyone is wondering where God is these days with every atrocity. The question is raised worse. God, of course, the answer is he's right.

We bring along with us for the pain-and-suffering man is self covering those who place their trust in him without understanding the gravity of God's decision to give us free choice. It's easy to blame God for everything God did indeed give us the gift of free choice and without God in the lives of most Americans. Bad choices are being made by a lot of American everyone, both good and bad suffering circumstances what the world needs now is love sweet love. That's how God intends for the world to know that were his disciples and drawl meant to him by her love. There is nothing more exciting than knowing God is using you to move people closer to him. Join is not and grandma to daily life for daily living as God dealt with Adam and Eve, he revealed his righteousness and justice, God is also loving and merciful Satan planning to defeat God's purpose failed to account for the character of God, he failed to realize how much God loves the man and woman he created in the depths to which he would bring them back to himself. Adam and Eve needed a covering for their sinful change but fig leaves were woefully God provided a covering. Listen to me you to can be close and receive forgiveness for your own sinfulness by claiming Jesus Christ is God's sacrificial lamb he will clothe you, in his righteousness.

Isaiah 6110 says I delight greatly in the Lord my soul rejoices in my God for his client with garments of salvation and wrapped in a robe of righteousness is you got this is a n-gram lot.

Many people adopt an attitude toward marriage and finances that it'll all work out somehow. But sadly, it often doesn't financial woes can devastate a marriage but there is a better way.

God's way, money, and marriage counseling by Howard Deaton will help you discover God's approach to growing your finances strengthening your relationship with your mate and cultivating godly joy, money, and marriage God's way is available and moneywise email just a couple of lines that is question questions that Omar G get today Geraldine Alabama hello Terry what's in your mind. I don't know how great their own. I want to give a price report to you folks up and listen for 30 Larry Burkett and I don't know how many people been ultimately been there but with you all are given in program without prior years and no one and I got involved with manifesting and stealing them.

It is really been a blessing to million on what you know how much programmable know you met me and my family for Terry. Yes, your question, let me just affirm what you're saying here. I appreciate you giving testimony to the impact of the late Larry Burkett. You know there's not a week goes by that we don't hear Larry's name from somebody calling into this program and it's just evidence of his faithfulness and integrity and ministry serving the Lord for so many years and it had such an impact on so many people and it's incredible to hear folks like you saying I got my start we hear from folks saying I was in the backseat of my mom's car while she was listening to labor.

Now I'm listening. And my kids in the back cement is amazing and that Steve you had a front row seat all yet well they were in the backseat. I was in the front gate and I was not Terry I remember the very first time that Austin prior to joining Larry on our program and it was just fascinating and fantastic and Larry encouraged Austin to begin his ministry and it remains out there today.

A sound mind doing great things for people all biblically based, so Terry again, thank you for calling and thank you for those very kind words.

Now how can we help you. What's your question in your program of the Diane somebody called in about credit card and note one you know doing that sometimes opens you up to more gifts and discrepancy or something.

But what I have gone over the years it got you best credit card like to get the most returns are perks you know and so I've had for a full cargo live 30 years when I quit, you will not quit and so it all went away and I quit sending the car but I got the word out.

I am still open and some of that stuff and not go to find out if somebody's still harder didn't know why art while you know if it's dormant for a certain period of time that it would be closed automatically, but I wouldn't assume that Terry had made still. In fact, they may be open just sitting there with zero balances. What I would do is pull a copy of your credit report from each of the three bureaus go to annual credit annual credit you can pull a copy of each of the three bureau reports Experian, Trans Union, and echo facts. I get all three your poem you'll take a look at him and it'll tell you it'll show you all the accounts and it will show you which accounts are open and active and which ones been closed and it should still be on their it'll take out takes 10 years to forward this gives me seven years for to rolloff, but if it's been within seven years. You'll see in there.

Hopefully it says closed.

If not you could go ahead and give them a call and tell them to close him. I would say just as a rule of thumb when you are closing an account you'd typically want to redeem any awards first, then you'd talk to the card issuer. Make sure there's not a balance. If there is paid off. Confirm your zero balance requests the account closure and then dispose of the card and if you want to be extra safe you'd notify them in writing and get out. That way you did make sure and then you could follow up by checking your credit report later just to make sure they were in fact closed so I will be surprised if you find either case, you may find there open and you need to close them, or they may have been closed just because they set dormant for so long, so that's probably your next step in if you are confused by anything you're seeing on those credit reports. Terry want to bulldoze give us a call back Terry God bless.

Thanks very much, Terry, sounds like the kind a guy like to have a cuppa coffee with and I bet I bet he drinks a black I could just tell me I just thinks that I use that. I mean I use the little pink stuff and might you use the pink stuff got in the case that no pink interior is Paris Island South Carolina Joseph what you question for Rob West today sir or focal and ministry working a lot of ball in crypto currency wanted to find out you thought this was a good investment and something that the Christians all yeah Joseph, you know, when you talk about crypto currency as an investment. Specifically, I would have some caution there. You know people invest in crypto currencies because they think they'll make a lot of money in a hurry and some investors have done that you are the most well-known would be a bit coin investors. But keep in mind. Some have lost significantly and the Bible has something to say about this. Proverbs 21 five says the plans of the diligent lead surely to abundance, but everyone who is hasty comes only to poverty. I think the best word you'll find in God's word related to this type of investing is steady plotting would be the alternative, and really how we should approach our investments and I think you're chasing crypto currency returns would be often times anything other than steady plodding because I would really fall into the ultra high risk investment category too much volatility greatly exceeding other investment classes, and without the long-term performance. Now I will say I think the technology behind many of these crypto currencies is here to stay in our digital age. You know we want instantaneous global transactions that are low-cost, accurate, verifiable, and and so I think from that standpoint.

The crypto currencies are not going anywhere. Certainly as we move to more digital payment methods and you know working at have that here for ever.

I think, but as an investment far too risky for the average investor that would be my take Joseph Joseph, thank you very much interesting question and one that we get on a semi regular basis. Hope that helps you quickly. Madison Wisconsin Mary, just a little bit of time can you give it was briefly wondering what we should do in fact hundred and 20 mortgage 525 retirement around what your age is Mary EQ and you're still systematically contributing to your retirement plan okay and you have the kids that are grown one school okay you have plans for college covering the cost of college.

We do have one about seven that went after Howard and a cover yeah okay well you know I think the good news here is that you all are well on your way towards having a retirement nest egg. I love the fact that your pain down that mortgage and sounds like that's a reasonable amounts. The goal there would be that that mortgage would be completely eradicated by the time you reach retirement with regard to the 70,000 you know we always need to come back to our values. I think with the start with one of the values that are important to us or convictions. What is God doing in her life, and as stewards of God's resources. What are the goals he's given us. How much is enough.

With regard to retirement. How much should we be giving what lifestyles he called us to.

But here's the thing once we decide on her lifestyle them were not going to continue to increase that. So any excess can either be applied to additional giving or savings and I think we gotta define our savings goals as well.

In addition to retirement. We need to look out and say what other savings goals. Do we have now.

The cost of college obviously can be very high. It's not uncommon to see 25 or 30,000 year being spent.

Doesn't mean you have to spend that much, but I think the next question for you and your husband is to say how much do we want to provide for our kids and then communicate that to him them and I don't think there's a right or wrong answer there. I think you just have to pray through it.

Decide on the amount communicated so they know and they can factor that in. Is there a making the decisions with you and then make a plan for any amount that is the cost. Beyond that, but certainly this 70,000 could be a great start in that direction. Beyond that, I'd certainly want to make sure that you have 3 to 6 months in emergency funds, and even though it doesn't sound very exciting, earning 1/2 a percent a year in online savings account. That's exactly where I put it because that's there for emergencies when the unexpected comes and it will so I think you gotta go back to the goalsetting process and really pray and think through what are those goals beyond retirement that we have college certainly emergency savings. What else do we need to replace a car for cash down the road, and therefore we want to hang onto it so I think that's the next step in and what you guys think and pray through that. If you have other questions. Once those goals become clear of certainly give us a call back. We looked away Mary were glad that you got through today.

Thanks so much for being brief so that we could squeeze all that in and we trust that you and yours all have a wonderful weekend and you too Robbie know we covered a lot of ground this week you we talk so much about the technical side of things Wall Street in this account and that account. Bottom line though is we really do put our faith in where it all starts and that's with the cornerstone Jesus Christ himself.

That's exactly right Steve. He is trustworthy. His promises are true and he is our provider. He will never abdicate that role and responsibility to anyone or anything else. Amen.

Thanks very much, Rob hope. But you and the family have a wonderful week and thank you for listening moneywise live as a partnership between Moody radio and moneywise media my face to a technical crew behind the scenes, pushing all the right buttons in all the right times. Rob last time Steve Moore have a wonderful weekend. Drive safely church your assembling together as best you can. These days, then join us again Monday for moneywise

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