We often have a fanciful image of winter, a fresh blanket of snow, frosted windows, and a crackling fire in the hearth. But that picture is not so idyllic if you can't pay your heating bill.
That's right. Hey, it's yet another challenge for millions affected by the coronavirus pandemic, keeping the furnace going over the long winter months. Welcome, Advisors. President Rob West has some tips to help with that, and we'll take your calls on anything financial at 800-525-7000.
800-525-7000. I'm Steve Moore, helped with heating bills, next on MoneyWise Live. Well, Rob, this really is some timely advice because winter has indeed set in. I mean, we're in Georgia. I've got my jammies on today, the ones with the feet. And as the temperature drops, heating bills are rising. Well, that's exactly right.
Let me just encourage our listeners, no jammies in the studio today, in case you were wondering. But you're right. That's always true. Those bills will be even higher this winter with many families and individuals spending more time at home. You know, you've lost the option of turning down the thermostat when you're away from the house as we spend more time there. That's right. I hadn't thought of that.
All right. So where do we start looking for help with our heating bills? Well, if you've lost income due to the coronavirus shutdowns, it's likely that all areas of your budget are hurting, not just the utilities. So first, go to MoneyWiseLive.org and in the article section, you'll find our May Day budget.
It'll help you prioritize your spending with limited income. Now, in the May Day budget, you'll see that the third priority is utilities right after food and housing. We'll have a link to that, by the way, in our show notes for today. Okay.
And you'll find ShowWiseLive.org. All right, let's drill down a bit on the utilities category, which includes heating. What's the first thing to do? Yeah, the first thing not to do is run from the problem. If you can't pay your heating bill, immediately call your utility provider.
Let them know the situation. They may be able to help you work out a plan that keeps the heat on. When the pandemic first hit, state and local governments put restrictions on utility companies to prevent service shutoffs. Now, when those restrictions ended, many utility companies opted to continue them voluntarily, so you'll want to check with your provider. Now, keep in mind that many people are in the same situation and utility companies are geared up to help their customers through these challenging times.
Okay. Is there anything I need to do to prepare before making that call? That's a good question, and yeah, you should get organized. Be prepared to tell them about your current financial situation in some detail.
Give numbers on how your hours have been cut or your income reduced, and gather documentation. We're talking about pay stubs. Also have your utility bill handy as well. Once you've done all that, you're ready to make the call. Try to do it right when the office opens in the morning. A little tip.
The lines aren't so busy then. And above all, be polite. Answer any questions to the best of your ability and understand that the customer service rep wants to help, but there are limits to what they can do.
Be grateful for any assistance they can provide. Okay. All right. I've done that.
Then what's the next step? Well, it's something you can actually do anytime, even if you're not having trouble paying your heating bill, and that is look for discounts. Sometimes your employment with a certain company or membership in various organizations make you eligible for discounts with utility companies. So that's definitely something to check out anytime. But also, Steve, many municipalities have arrangements with utilities that include discounts for seniors on gas, electric, and telephone bills. So if you're in that category, check that out also.
Yeah, that's a good reminder. Okay. How do you find out about this? Well, I would just say check with your local municipality's website or call them to find out about possible discounts. You should go to your utility company's website to find out if they have agreements with organizations that you may belong to. And like before, have your documentation ready.
You may have to provide proof of residence or other identifying information. Okay. Talk to your utility provider. Look for discounts. Anything else?
Yes. If all else fails, you can apply for government assistance. I know that's difficult for some people, but keep in mind that this is one reason why you pay taxes. You've paid into the system and you shouldn't let pride, I should say, keep you from heating your home. You can contact the Low Income Home Energy Assistance Program and we'll have a link to that as well in the show notes today. That program directs you to local nonprofits and government agencies that can help with your heating bills and get utilities back on if they've been shut off. Okay.
That is great information for folks who may be struggling to pay their heating bills this year. Thanks so much, Rob. And if you've not been struggling, God bless you. Maybe God has blessed you this way so that you could help someone else. Give that some thought.
800-525-7000. We'll be right back. Money and life run on the same track, but unfortunately sometimes it seems like your money is heading in a different direction from your goals. In Never Enough, Three Keys to Financial Contentment, author Ron Blue helps you to break down all your financial options to a basic four 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 at MoneyWiseLive.org.
No matter what's happening in the market is available at SoundMindInvesting.org. You probably don't often consider that your interactions with others is an invitation to adventure with God. I'm Drew Dick, host of Moody Publishers Reading for a Change podcast. In their new book, Sent, Heather Holloman and her husband share how you can live out your true identity being sent to share Jesus with others. You'll learn practical strategies to engage those in your community into meaningful conversations that can lead to gospel transformation.
Grow in intimacy with Christ and with others by reading Sent, now available at MoodyPublishers.com. Okay, two raisins, one cracker and a single almond. Yep, that's my foot pantry. All of it? We laugh, but sometimes Christians feed themselves spiritually the same way.
Sparse. Why not take in something healthy? Today in the Word is a daily dose of scripture and application. A fresh topic or a book of the Bible every month.
Plus, it's available in three flavors, print, podcast or email, all free. Make the healthier choice at todayintheword.org. How did you feel the last time you made a not so good decision? As Pastor Andy Stanley points out, our decisions are like the steering wheel of our life. And so you get decision-making right, you get life right.
In his new book, Better Decisions, 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. Request your copy with any gift to MoneyWise of $25 or more at MoneyWiseLive.org. Hey, really great to have you out there today. It's MoneyWise Live with Rob West. I'm Steve Moore taking your calls, except we're not taking your calls right at this moment. Rob forgot to pay the phone bill, and this is embarrassing for a financial program. But for some reason, for some reason, the phones are down right now, but we're working on it. So don't go away, and we'll let you know when to pick up the phone again and give that a try.
And in full disclosure, it has nothing to do with paying the bill. I can promise you that. You can promise that. You're ready to go out on that limb, are you? I am, actually. Amen, I love that. Okay, now we're talking about heating your home today, which is vital.
Maybe even more important than your phone working, unless you're doing a call-in program, of course. But it was our Facebook question of the day, and we've had lots of responses. Rob, you want to start with the first one here? Well, let's read the question first. You know, we talked in the opening topic about heating your home, and the real challenge that many Americans, and frankly all over the world, folks are finding in the midst of this pandemic, with hours being cut, perhaps being laid off, depending on what sector of the economy, and others, some have been hit harder than others, and you may find yourself in a real challenge financially.
And let me just encourage you, God is your provider. He can be trusted, lean into your local church, but also take advantage of opportunities that are out there to cut costs. And we mentioned our May Day budget that you'll find in the article section of our website, MoneyWiseLive.org. That could be helpful to you. Our new MoneyWise app could be helpful, because budgeting is going to be more important than ever. But to our Facebook question today, we ask, how have you learned to lower your heating bill? And if you're looking to trim your budget, these ideas could be great.
Let me read the first four, and then Steve, I'll ask you to take the next. Lily says, put on an extra sweatshirt. And Julie, my wife, certainly subscribes to that, because I like to keep the home a little colder than she does. Brenda says, put plastic on the windows to reduce drafts.
Have strips of cloth at the bottom of the doors, too. Matt says, a wood stove. And I will tell you, we've been burning lots of fires lately here in Atlanta, and that's always been fun.
And Laura says, don't. I work hard to stay warm. She says, find ways to cut the rest of the electric bill so there is no massive increase in the winter. And I think that's a great idea.
Okay, I like it. Okay, Katie says, she also uses a wood stove. Gary says, not only do I use a wood stove, but I cut my own wood. And I suppose just the cutting of the wood will warm you up. And let's see, Manuel says, having an efficient furnace.
Whoops, my computer just jumped here. And he says, double down on Mexican comforters, which that sounds very warm. I'm not sure what that is. A Mexican comforter. I don't know what, maybe someone will send me one for Christmas.
And a Mexican comforter, or I'll Google it and find out what exactly that is. But hey, we appreciate that. We always appreciate your comments on our Facebook page. Every day we post a Facebook question. You can find us, obviously, at MoneyWise. Just Google us there. Just find us on Facebook there.
All the other social media sites, and you can plug in your answers if you have them for us. Now, we're still waiting for the phones to correct themselves, if I'm not mistaken. So, Rob, how about a couple of emails, all right? Let's do it. You know, so long or so many days we often don't get a chance to get to the emails. So, today we have a real opportunity here. Here's the first one.
It's from James. He says, is there a rule of thumb for when I should drop comprehensive coverage on a vehicle and go to liability coverage only? We have two cars. One has liability only because I bought it with hail damage. The other is a 13-year-old Civic with over 150,000 miles.
That one has comprehensive. And if we cancel that, it would provide needed breathing room in our budget. Yeah, great question, James, and I can certainly understand wanting to free up some expenses if possible. You know, the rule of thumb, and that's all it is, but the rule of thumb for dropping collision insurance, at least one of them, is to drop it when a car's collision premium plus the deductible, so the collision portion of the premium plus the deductible costs more than 10% of the car's value over a 12-month period. Some experts also advise dropping collision when the vehicle is more than 10 years old.
But if you do the math on it, the total of the collision premium plus the deductible, if over 12 months that's 10% of the car's current value, which you can look up at kbb.com or edmunds.com, then it may be worthwhile dropping the collision so you can recoup some of those funds, realizing that you'd probably be hard-pressed to pay for it and justify it. Yeah, good advice, all right. Here's another. It's from Mike. He says, Dear Rob, I've heard you reference the importance of setting a financial finish line.
Can you elaborate a bit more about what this is and how I go about it? Mike, I love this question. So, you know, we talk about answering the question, how much is enough? Or you could say, as Mike did, setting a financial finish line. And here's what we mean by that. You know, we have to back up and recognize that, of course, God owns it all, which puts us in the role of steward or manager of God's resources.
The question then is, what is the appropriate use of those funds? What is the appropriate lifestyle for a Christian? You know, that's, Steve, not defined in God's word. It doesn't say we should live on sixty eight point two percent of every dollar that comes in and we should, you know, give or save the rest.
It doesn't get that specific. We get principles, but we're left as believers, as stewards to say, what's appropriate? How much should I be spending given what God has entrusted to me and all the needs that are around me and so forth?
And so that has to drive us back to our knees to say, Lord, what would you have me to do with your money? Now, here's where we get to this idea of a financial finish line or answering the question, how much is enough? I think it really comes down to two key categories. One is in the area of lifestyle, and I would say that has to do with how much income you're willing to live on. And are you going to cap that at some point? And the other, in addition to lifestyle or income, is assets or accumulation. So how much income am I willing to live on and how much am I willing to accumulate over time in the way of assets? Let's start with the income side or the lifestyle side. This is the idea that you would say, you know what, above a certain amount of income, I'm not going to continue to increase my lifestyle as my income increases. So I might start out at a starting salary. I might see some increases over time.
And usually your level of spending always rises to your level of income. But at some point, the idea is that you would prayerfully say, Lord, over this amount, whatever that is for you, and I can't tell you what that number is, I'm going to cap my lifestyle. I'm no longer going to increase the amount I'm spending on a monthly basis on things like houses and cars and eating out and gifts and travel and all of those things.
I'm done. And so therefore, Lord, any increases above that amount in terms of my income, I'm going to give it away. I'm going to put it back into circulations in God's economy. And I think we have to make the same prayerful decision on the accumulation or the net worth side as well. And that's simply to say, Lord, I'm going to set a goal to save X amount for retirement, let's say. And it's based on math, right? It's based on that lifestyle decision you've made.
You might make that in concert with a certified kingdom advisor. But at some point you would say, Lord, my financial finish line is X. And if we're on track to achieve that and it's someday if we achieve that goal, then everything else we accumulate beyond that, we're not going to keep it. We're going to give it all away. And I think that's the opportunity we have in both of these areas, income and lifestyle and net worth and accumulation to say, Lord, at some point, I'm going to draw a line in the sand and I'm going to say above this amount, everything is going to be redirected back into your kingdom. Doesn't mean we don't give until we reach that, but it means we give perhaps everything beyond that once we hit those numbers.
Two quick thoughts come to mind, Rob. One is that if you do this at the age of 25, there certainly is a distinct possibility that you might feel differently at 75. You might want to move that line one way or the other. So, you know, be flexible there. And also, obviously, if you're married, because God so often puts dissimilar people together, you want to make sure that you and your spouse agree on this. And that may take a little bit of time, a little bit of flexibility as well, flexibility as well.
But that's good for you, right? Well, let me comment on that, because I think that's a key point, Steve, and that idea of making that decision early is key. You know, I had in my office just the other day a gentleman by the name of Alan Barnhart. Alan is the owner of Barnhart Crane and Rigging, a very successful company that furnishes cranes all over the world for large projects. And Alan and his wife made that decision early that they were going to cap their income as a multiple of the median income in their city, which wasn't a lot by all standards. And they were going to cap their net worth, their accumulation at a very modest amount. And that was before Barnhart Crane and Rigging was what it is today, which is a very successful multimillion dollar company. And let me tell you, they made that decision early and they stuck to it. And as a result of that, they have lived modestly and they have given to missions tens of millions of dollars. And so just because you make that decision early doesn't mean you can't live by that, live simply and see what God does with the rest.
OK, well stated. Thank you, Rob. We're going to pause here.
You're listening to MoneyWise Live. I think our phones might be back up, so we're going to try this. 800-525-7000.
800-525-7000. We'll check it out. And again, this is MoneyWise Live.
He's Rob West. I'm Steve Moore taking your calls today, also answering your emails. Please stick around. Don't go away. Sounds awesome.
Let's do it. For the word of God is quick and powerful and sharper than any two edged sword. Here's Beth Moore with a quick word. He said the strangest thing in prayer a couple of days ago. He said, You know, Lord, you have blotted my name off the face of the earth.
Whoa. And I realized that he is the Moore son. He had a brother, but his brother and he were in a fire when they were little boys. And his brother died of that fire. And then we had only daughters.
But I realized how huge I wanted to interject immediately. But spiritual offspring, Lord. But Keith had a point that he was making. He said the sins of the generations have now ended because Keith and I, to Keith and I, it has just been huge that God has done the work that he has done to people so handicapped by sin. With such strong, strong natures towards sin and all this stuff we've been dealing with. And have God bring us through that where neither one of us live in the grips of those things anymore. And to say, You have not only blotted those sins.
You just took that whole name. And what God spoke to me is a blessing of anonymity. Let it go. Let it go. That all that will exist of us when we're gone is that we just hope so much that somebody loved Jesus through his word.
Why in the world do you think that we have cemeteries with gravestones except to plant our tamarisk tree? Isn't that what we're doing? You've been listening to Beth Moore with a quick word. We have two ways to experience Now That Faith Has Come, a study of Galatians. The online experience is now available at BethMoore.org.
The workbook edition will release in January 2021. Either way, Beth would love to have you in Bible study. Welcome back to MoneyWise Live.
Finding God's plan for your financial life. It's a pleasure to have you with us today. We're doing some emails. We're also taking some phone calls as the phone company allows us. Some technical things going on today. But let's try one, Rob.
West Palm Beach, Florida. Pastor Nelson, are you with us, sir? Good afternoon, Robert. How are we doing today? We're doing well.
What do you have for us? Well, first of all, I wanted to tell the guy that brought his pajamas to work and put the footies on them. Yeah. I know you were just kidding about that. Well, I wouldn't put it past him, Pastor.
Just so you know, he's done crazier things. I hear you, man. I've been listening to you. I'm listening from 89.3 in Boynton down in Florida. Moody. Very good.
Okay, I want to say right quick. In Florida, we have a program called You Dial 211. And they assist people with their electric and utility and water bill. And also through FP&L, our utility company, we have a thing called a share program where when you pay your bill, you donate from a dollar to five dollars in a share fund, and it's called a sinking fund. So if you're in Florida, FP&L will work with you if you run into some kind of problems.
You know, you can't get the lights on. They will work through extensions. And also probably give you some kind of credit that will come out of what they call the share fund. We've been doing that for about the last 50 years down in Florida. I love that. Well, that's great. So call 211 if that's available in your state.
And then also see if perhaps if you're in a situation where you have more than you need, you could contribute to a sinking fund that would be available for others in your community if they get behind or have trouble paying their bills. So that's a great idea, Pastor. Well, hey, thank you for calling in. Merry Christmas to you, sir. Yeah, thank you very much, Pastor. All right. You guys are doing a great job.
I've been listening to you for a long time. Thank you. Thanks. God bless. I can't believe someone would call and make fun of my flannel pajamas.
I just what do you have against flannel? My goodness. All right. Hey, Rob, I've got an email here. It's it's from Karen. She says, Dear Rob and Steve, what's the name of the site to request credit reports from all three agencies at the same time? I want to make sure everything is OK if I find a problem. How do I go about fixing or correcting that information that is incorrect?
Yeah, it's a great question, Karen. And the site that you're referring to where you can get free credit reports from all three bureaus is simply annualcreditreport.com. Annualcreditreport.com, where you can request a report from Experian, Equifax and TransUnion. It used to be that you could only get one per year per bureau.
You can now get more than that. And so I would encourage you to check that out. You know, staying on top of your credit report, monitoring it, looking for inaccurate information that may indicate a company has your information wrong. Perhaps they've mixed you up with somebody else or worse than that, somebody has opened an account fraudulently in your name. One of the ways you would identify that is by checking your credit report in such a way that you would identify that.
Say, this isn't mine. And through the Fair Credit Reporting Act, you could challenge that information, which is Karen's second question. And that is, if you find a problem, how do you go about correcting it? You will find on that report information where you can challenge anything on it. And by law, that credit reporting agency will have 30 days to either prove to you with documentation that is, in fact, correct.
Or delete it or correct it. And they will let you know what the outcome is. And that information will be able to be right there in the report. You can do that either electronically or in writing.
So be sure to get your credit report from AnnualCreditReport.com. Okay. And before we hit our next break, Rob, I know you've been anticipating getting a chance or an opportunity to mention the new app today. Would you like to do that now?
Oh, I'd be happy to, Steve. You know, our new MoneyWise app is out and available, and you can get it from wherever you get your apps. That might be the Apple App Store or the Google Play Store. Now, why would you want to download the MoneyWise app? Well, we spent eight months with a team of incredible developers building what I believe is the very best digital envelope system anywhere. It has everything I always wanted in a digital envelope system. I couldn't find it, so we built it. You can download your transactions automatically.
They're automatically categorized. You and your spouse can use the same account. You've got it right there in the palm of your hands, and there's a web app as well. So go get it today.
Search for MoneyWise biblical finance. Thanks, Rob. Taking your calls today, 800-525-7000. We have some open lines. Give us a ring right now.
Call 800-791-6225 or visit chministries.org. Investing is more than just returns. It's an expression of who you are and what you value. Does the way you invest your money reflect your identity as a Christian? At Eventide, we design investments for performance and a better world, so you can invest with the confidence to reach your financial goals while remaining true to your Christian values and commitments. We call this investing that makes the world rejoice. More is available at investeventide.com.
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Go to mymoodyradio.org, mymoodyradio.org. Buying a home is the largest, most nerve-wracking purchase most of us ever make. It doesn't help that you're entering a maze of unfamiliar words and confusing options that can leave you intimidated, frustrated, and afraid you've been taken advantage of. Navigating the Mortgage Maze by Dale Vermilion helps you clear up the confusion, unrack your nerves, and make the best mortgage decisions possible with confidence. Navigating the Mortgage Maze, available when you click the store button at MoneyWise Live. With SRN News, I'm John Scott.
A group of independent experts will review the FDA's findings and vote on whether to recommend use of the vaccine. U.S. productivity increased at a solid 4.6% pace in the July-September quarter, slightly below the initial estimate. Study gains throughout the day delivered another round of record highs on Wall Street that now gained 104 points. The Nasdaq up 62, the S&P ahead 10. This is SRN News. Whether it's saving, giving, getting out of debt, managing what you have, investing what you have, we're here to discuss it. And to help you with it, our phone number is 800-525-7000. Sorry, I think we're having a phone issue here, Rob. 800-525-7000 if you'd like to talk with Rob West today about anything financial. Let's continue on by going to Newport, Washington.
Carl, how can we help you? Well, actually, I just wanted to encourage all those young investors out there. And thank you for taking my call today. Well, I can't say that I have made 100% intelligent investment decisions, but I do have a retirement that I paid into for 20 years. And I do have a pension that my company provided for me. And also, my wife and I, we paid an extra $100 a month on a mortgage every month.
And now we are seeing the end of that. We've got less than three years to pay off the mortgage, and we're paying it off seven years early. And I just want to encourage young investors out there, hey, you buy a house, pay 25 bucks extra, whatever.
It takes off so much interest at the end. Be diligent in investing in your future. When our house is paid off, I had to buy a car for my business. So that'll be paid off about the same time the house is. And we will essentially be debt-free. And we enter retirement, and about the time the house is paid off, I'm eligible for my full Social Security. So, I mean, I get a triple whammy for income, and it really wasn't painful all those years because 401k had a match. If you got a 401k, great.
If not, get it off. Well, I love this, Carl. You've done a couple of things that you're identifying here, and there may be some people listening thinking, really? It's all $100 a month? I mean, I could scrape together $100 a month.
Not everyone can, but a lot of people can. And if you do, and you do that systematically over time, I mean, think of the tens of thousands of dollars in interest you saved, Carl, you and your wife, by making this extra payment every month and cutting off seven years. So you were systematic and diligent in that. But the other thing you did, Carl, here is as your home increased in value, it would have been very easy for you to go back and refinance and perhaps extend that term back out.
But obviously, you didn't do that. Or if you did refinance along the way, you didn't lengthen the term. And I think those are two traps we can get into thinking, well, that small amount every month is not going to add up to anything meaningful.
It will. And, well, I'll just refinance and do a new 30-year mortgage, big deal. No, it is a big deal. And so you've guarded against both of those, and you've really reaped the benefits of applying biblical principles. Well, I'll say. Carl, we're impressed.
For the most part, it is painless. And we didn't know how much it was going to take off of our mortgage. But my wife found a mortgage calculator online, put in what we had left and what we're paying plus the extra.
And we're going to be done in three years with our mortgage. Wow. Wow. That is great. Well, thank you for calling today and sharing that encouragement.
I'll say. Thank you very much, Carl. What's the Bible say about moving along slowly but never losing focus?
There's a Bible verse, it seems to me, Rob, that addresses that. Steady plotting is the idea that we want to apply there, Steve. Yeah, steady plotting. It's amazing.
And there's a tremendous testimony from Carl in that regard. Hey, here's our phone number again, 800-525-7000. We have another email, Rob, this one from Karen. Let's see. No, we already did, Karen.
I think this is from Kim. She says, I have a car loan for $13,500 at 1.9% interest for the next five years. Is it wise to take money from my savings to pay it off, then pay myself back? What questions should I consider in making this decision?
Well, it's a great question, Karen. And I love the idea of you being out of debt completely, even though it might be tempting to hang on to that low, low interest rate at 1.9%. I would just simply say this, the way you need to make that decision is first, making sure that you don't get your emergency savings down too low. So if you're saying you've got enough in savings to pay it off, my question would be, what would you have left?
Now, if you have a good steady income, you don't anticipate any disruptions, and I realize we never know fully, but at least nothing on the horizon you can see. And you could hang on to at least one month worth of expenses in that emergency fund, and you know that once you pay it off, you're going to have enough margin that you could build that up in a short period of time. I'm thinking, you know, six to nine months, and you're going to be disciplined enough not to take that money and redirect it into additional spending or lifestyle. Then I would say, yeah, let's go ahead and knock that out, be debt free, and by the way, once you build the emergency fund back up, keep paying yourself in the next car fund, right? Because when this one is beyond its useful life, I want you to be able to pay cash for that next one. These are the priority uses of money, Steve, but it always comes down to, do I have some margin, right? After I give, after I pay my taxes, after I cover all of my lifestyle expenses and put something away systematically for retirement, I've got to have margin that I then use for the priority uses of money. And I would say that's first $1,500 in your emergency fund, next paying off completely your consumer debt, like credit cards and then student loans, and then beyond that, additional savings goals, and by the way, don't forget additional giving all the way along the line. I like that.
Let's see, one more quick email, then we'll take another break here. Hi guys, can you briefly explain how it works when you trade in a car that you still owe money on when you're financing another one? Ah, yeah, yeah, this is a really good question. Here's the thing, you know, two options really when you trade a car in that has a loan on it. Number one, whether you have positive equity or negative equity is really the big deal. If you have positive equity, that is, your car is worth more than the amount you owe on your loan, then you're in good shape. The difference is positive equity, and that difference is going to be applied to the purchase of the new car. If it's negative equity, meaning you're upside down, you owe more than the car is worth, well, then when you trade it in, you'll have to pay the difference between the loan balance and the trade in value, which you will either roll into the new loan, which I don't recommend, or pay out of pocket. Now, you're going to want to come with the information that's needed, the loan information, of course, your driver's license, vehicle registration, and the like. Typically, the dealer will handle the paperwork, meaning they'll transfer the title over, they will take care of the payoff on the loan, and they will take legal ownership of it in the process. But remember, everything is negotiable, including that trade in value, so you're going to want to maximize that.
You may even want to think about selling it on a private basis first, and then go buy that car with your cash. But great question, we appreciate you emailing it in. Yeah, thank you, Bev, we do appreciate that. If you have an email you'd like to send Rob, make it brief. If you'd like to hear it right on the program, then send it along to questions at MoneyWise.org, questions at MoneyWise.org. We're going to pause here for another brief break, but don't go anywhere.
Belinda, we're heading in your direction. This is MoneyWise Live. You probably have a strategy for your finances, your career, even your retirement, but do you have a strategy for your giving? At the National Christian Foundation, we can help you create a giving strategy to inspire your family, maximize your resources, and leave a lasting legacy of faith.
To learn how, visit MoneyWise.org slash NCF. God cares a great deal more about our money than most of us imagine. In fact, Jesus says more about our use of money and possessions than about anything else, including both Heaven and Hell. In Managing God's Money, author Randy Alcorn breaks it all down in a simple, easy-to-follow format that makes it the perfect reference tool if you're interested in gaining a solid biblical understanding of money, possessions, and eternity. Managing God's Money is available when you click the store button at MoneyWiseLive.org.
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That's moodypublishers.com. Nice to have you out there listening today. It's 800-525-7000. We hope it's warm wherever you are. I don't imagine that's in too many parts of the country today, but nonetheless, let's continue. Belinda, thank you for calling, and Belinda, you're in Romeoville, Illinois, is that right?
Yes, that's correct. All right. How can we help you today? I recently come into some extra money, and now it's currently sitting in a savings account where it's not earning that much interest. So I wanted to, I guess, kind of get some ideas about investing it in a CD or something, or what other ways would you recommend? I can invest that both times into something where I can actually see the money grow.
And I get, you know, where it's so accessible for me to just get into it. Okay. Yeah, I want to get a little more clarity around that piece of it, Belinda. When you think about this money, what do you think the purpose of it is? Do you have some thoughts on how quickly you'll want to access this, whether this is money you're willing to take some risk with, meaning you want to get a better return, but you're willing to lose a little bit, but you've got a longer time horizon? Or is it money you really want to protect, meaning you're not willing to put at risk at all, and so therefore you want to be able to get to it at any time, you just want to maximize the return while you're waiting? Give me a little bit more on that.
That's what I want to do. It's more of a, like a, I don't want to say an essay, but it's money I want to protect to keep close to hand in the event that I need it. Because financially and, you know, with my income that I have, I can continue to do what I need to do as far as my lifestyle, my bills, and taking care of myself.
So this is just like, rather than me having a 401k, I want to invest it in something else other than that. Because I don't need it right now. All right. If I were to say I'd like for you to not touch this money for at least seven to ten years, do you think that would fit with what you're thinking? Or do you want to be able to get to it sooner than that? No, that would work for me. That would work.
Okay. Well, if that's the case, then I think you can take some risk, again, assuming you're willing to do that. And what I mean by that is we've got a couple of options. The first option is we say we want to protect the principal. And so we want to keep the money absolutely safe and secure and we want to earn a little bit of interest, but we don't have the risk of losing any principal. If that was the case, I wouldn't go with CDs in this low interest rate environment. I would think beyond that, what you would want to do is just put it in a high yield savings account, earning a half a percent. Now, that's not a lot of money, meaning, you know, you don't get excited around earning a half a percent, but you would know that the principal is protected. But the way we get a bit more return with a longer time horizon is to say, I want to invest it. And the best way to do that is to put that money to work in a properly diversified stock and bond portfolio where you would say, I'm going to put this away. I'm going to let it grow for at least seven to ten years.
I'm not going to touch it. And the reason we would have that kind of time horizon is we want to be able to weather the ups and downs of the market. We don't know that the market's going to go straight up from here. In fact, we're pretty sure it's going to ebb and flow.
But here's what we do know. Over the last 100 or more years, the stock market has been the very best place to build wealth, but only if you're willing to be patient and you're not trying to time the market and you're not reacting emotionally. You know, if you were fully invested in the market and you don't have to be, you could have a mix of stocks and bonds. But let's say you were. I would want you to be able to get a statement in a particular quarter and see your account down as much as 35 percent and be willing at that point to say, I'm not going to emotionally just pull this money out.
I'm going to let it go. And I know that this is part of the way this works. But over the long haul, if I'm patient and I don't pull my money out of the market and try to time the market, I'm going to do well because this has been the very best, most consistent way to build wealth over time. And if you were willing to do that, then I would say you should take this money, hire an investment professional, and let he or she deploy this money in the stock market and have, again, a well-diversified, long-term investment strategy.
You could monitor it. You'd obviously be very involved in determining what the investment strategy is based on your goals and objectives. And then this professional would choose the actual investments that make up the portfolio. And if you wanted to do that, I would encourage you to go to our website, MoneyWiseLive.org.
Click Find a CKA, someone there in Illinois that you can connect with. And I'd interview at least two or three and then let them take over at that point. Last thing I'll say is I'd like to send you a book. It's called The Sound Mind Investing Handbook. And if you hold the line, my producer will get your information. This will give you God's perspective on why we invest and a bit of the how-to of what investing looks like. Again, it's called The Sound Mind Investing Handbook. Belinda, thank you very, very much. You stay on the line. We'll get that right out to you.
It'll make for some good Christmas reading. Fort Lauderdale, hello, Mark. How can we help you today?
Hi, guys. I love your show. I've been a longtime listener. Thank you. Go right ahead. I do have a question.
As I told your producers, something I've never heard you address. So hopefully you can give me some good wise kingdom advice. I am in a pretty good position financially, not rich by any means. But kind of like you said, I've saved my money all my life and I'm debt-free, thank God. And the question, just to be straight to the point, is that I am looking to possibly get married for a second time. First marriage, unfortunately, ended in divorce. And I want to be wise because I have worked very hard. After my first marriage and the divorce, I started back over with zero money and had to pay off a mortgage again.
And I had to do everything I needed to do to get debt-free. So my question is, I've seen this woman, you know, we've been dating for about six years now. And I would like to marry her, but I'm very, very afraid because I don't want to end up in divorce and go through the ramifications of financial loss that happened to me in the first time. So what advice do you have for me? Yeah. Well, I appreciate the way you're approaching this. And I think, you know, when we're talking about this, it really comes down to motive.
What is your heart's desire here? Because we believe marriage is intended by God to be a thriving, lifelong relationship between a man and a woman, you know, going through all kinds of trials and everything that comes our way. And when we get married, we become one flesh. And what we know is that everything in the marriage relationship becomes about one, which includes every facet of our lives, including the financial.
And when we do that, I think we have to be willing to go all in and recognize that then under the Lord, we are joining together as one flesh, including our finances. Now, is there ever a legitimate motive for a prenuptial agreement in a second marriage? And I think given that, you know, there are blended families and there may be businesses that have already been started and there may have been wealth that was created prior to the marriage that, you know, couples agree on after a lot of prayer and discussion.
They want to keep separate in terms of how it's passed down with legitimate issues of inheritance and those types of things. I think that is a situation where there could be a reason for a prenuptial agreement that, again, is not intended to in any way come in between God's design for marriage. But it's just a legal document that represents a recognition that we're joining families together that have had a lot of history with a lot of financial situations that occurred prior to the marriage. And therefore, we want to document what both husband and wife have agreed to prior to the marriage. But I believe that should only be done after a lot of prayer, a lot of conversation, certainly full disclosure. And I would say with the counsel of a godly estate planning attorney that's walking alongside you in all of these discussions to really help craft that. But at the end of the day, Mark, I think it comes down to your heart motivation. Are you trying to keep from joining together truly in the sense that God wants us to, or is this just about a recognition that there is a complex financial situation that existed prior to the marriage?
And so we want to keep a part of that separate for various reasons. And so I think there is some room there to honor the Lord and have a prenuptial agreement or not, again, coming down to what was the heart motivation behind it in the first place. Mark, I hope that helps you.
Thank you very much. It's a great question, and we'll pray that God guides both of you as you work through this together. And Rob, I would imagine in situations like this, maybe adult children might come into that kind of a relationship, and that would be a concern, huh?
Absolutely, Steve. And I think that's, again, when we're bringing families together with history and where we have a financial situation that has been there before. Perhaps we have extreme assets or a business that was created prior to the marriage or significant debt or inheritance or trust funds for children from a previous marriage. I mean, all of these things could warrant a prenuptial agreement, but it should never be driven by emotions like negative experiences with money or a desire for control or fear of being taken advantage of or selfishness. I mean, that's not the reason to do it.
It really is about the other things that I mentioned where it's appropriate. OK, let me shift gears here very quickly. Recently, a great friend of the ministry has come forward with an option or not an option, that's a bad word, but with a presentation of wanting to help us financially with a matching gift during this month.
Just a few seconds left. You want to tell us about that? I'd love to, Steve. We're so thankful for this generous donor that has stepped up to say I believe so much in the ministry of what MoneyWise is doing on the radio here every day, on the Web, the new app that we've built and all the exciting things that are coming next year, which I can't wait to tell you about, that they want to encourage and spur on greater giving here as we close out the end of the year. So they've simply said every gift between now and 1231 is going to be doubled. So you're going to double your impact when you give right now at MoneyWiseLive.org and you click the donate button. So we would just encourage you, challenge you to say if MoneyWise has blessed you, would you consider partnering with us?
We'll double your impact and we can't wait to do it. MoneyWiseLive.org, click donate. Okay, thanks so much, Rob. MoneyWise Live is a partnership between Moody Radio and MoneyWise Media. Thanks so much for joining us today. We'll be back tomorrow same time with another edition of MoneyWise Live.
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