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How to Use Your Emergency Fund

MoneyWise / Rob West and Steve Moore
The Truth Network Radio
January 7, 2021 7:03 am

How to Use Your Emergency Fund

MoneyWise / Rob West and Steve Moore

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January 7, 2021 7:03 am

You have to think of your savings as a piggy bank, not a cash cow.  If you don’t, then you’re just setting yourself up for trouble when you need to tap into your extra funds for a truly unexpected expense. On the next MoneyWise Live, hosts Rob West and Steve Moore explain the do’s and don’ts of using your emergency fund so you’ll be prepared when you really need it. That’ on the next MoneyWise Live at 4pm Eastern/3pm Central on Moody Radio. 


Jumper cables are a blessing when your car won't start, but you have to know how to use them, or you might be in for the same can be said for your emergency savings as a cash cow. Are you just going to be setting yourself up today kingdom advises president from tells you how to use it and how not to your calls at 805 7800 52575 that's nice here moneywise that ideally 3 to 6 months living expenses in our emergency fund. That's a given. So I guess the question might be what actually constitutes an emergency what you're exactly right Steve and it's critical to know that because if you don't, well your emergency fund won't be there when you really need it and all we know it's not easy to save up a proper emergency fund. You need to protect it. So it's there to protect you. That's why we have so we wanted to find a true emergency.

And maybe the best way to start is by defining what is until wise use of use of that money. Okay, I'm guessing that were not talking about a dinner out at Chick-fil-A after the radio broadcast is probably something more like taking a vacation remodeling the kitchen having to replace all the tires on your car at the same time that kind of stuff. Maybe that's on the know know, but in a broader sense. Let's say anything that you know is coming or have some control over. You see, you shouldn't use your emergency fund for things that are expected but might be infrequent. Those would be birthday and Christmas gifts auto registration and insurance premiums taxes back to school shopping and to that list auto maintenance, minor home repairs, even medical co-pays or clothing. You know those bills will eventually come do so. You need to plan for them in your budget okay so anything you can plan for you should and that does that much cover all the Noel the no-no is not bowel function. There's another whole class of things you shouldn't use your emergency fund. Let's call them wants or anything that isn't required for living. I at times you might want something so badly that you're tempted to tap into your emergency savings. These might seem obvious but let's go over them anyway of the latest smart phone upgrade or you have a wedding to attend, so you need to close family needs a vacation, even if it seems like an emergency. It isn't those things should all be a part of your regular spending plan and add to that some big ticket items.

Steve like a new car, a down payment on a house, or even retirement if your emergency fund has 3 to 6 months living expenses. That's a large amount of money and an even larger temptation. If you blow all or part of it on the want well again. It won't be there when you have a need not have to say this Rob you do take the fun out of emergency fund. So what what should you lose your emergency savings for I see what you did. There are three main categories. Steve and I suppose it's no coincidence that all of them are found in our May Day budget which you can download in the resources section of moneywise, those categories are housing, food, and transportation. As long as the need is unexpected and absolutely necessary and urgent so that would be things like living expenses.

If you lose your job or have a severe pay cut emergency home repairs, unplanned medical expenses and travel for something like an out-of-town funeral things like that list of no nose is a lot longer than the list of things that you should spend your emergency money on.

So let's say it's over suffer. Maybe a job loss or have a major medical expense and you have to tap into your emergency fund for that any cautions there while glad you asked, because there are three things you need to do when that situation arises. First you want to make sure you spend as little of it is possible that goes without saying that an example might be, you have an auto accident and need major repairs that are covered by insurance. What you been saving for a new car, you can use some or all of that money for repairs minimizing the hit on your emergency fund.

Second, whenever you have to use emergency savings that should always include a serious look at your budget to find any areas you can trim you have to reduce regular spending to make your emergency money go farther and that will also help with. The third thing and that's to rebuild your emergency fund as quickly as possible. Back up to 3 to 6 months living expenses because the you never know when the next emergency will come. That's okay well will come back and chat some more about this. And then of course take phone calls today on anything financial that you were wondering about 800-525-7000 open lines available. Give us a call right now to speak with Rob last 800-5257 money and life run on the same track.

Unfortunately, sometimes it seems like your money is heading in a different direction from your goal, and never enough three keys to financial contentment. Author Ron blue helps you to break down all your financial options to a basic floor and then shows you how to keep it all chugging along in the right direction on the same track never enough three keys to financial contentment available when you click the store Thank you from the bottom of my heart I could've had the procedure I needed without CHF's help in 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 not more bonkers. Robert and Nancy want to move her many life story. They all point same God's hand we see everything so we can trust him to write a story. It's encouragement you need God control our lives to be written living price and for his glory.

You can trust God to write your story by Robert and Nancy will your copy today three ways that you can pray for Moody radio we would be faithful to the word pray that we would present a simple gospel simply would be drawn right. Three important Prairie class theory about showing in our mission of making right now your commitment to Moody radio part of our country is 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 tool if you're interested in gaining a solid biblical understanding of money, possessions and eternity managing God's money is available when you store button moneywise today moneywise live round less about what are they best to and got Rob you want to put a bow on this anything we should shouldn't be doing when it comes to managing your emergency fund money. Let me just say Steve is possible to go too far in the other direction and think that you should never use your emergency fund, which borders on hoarding. It's there to use when you truly need it and you should.

And if you do have to use it. Don't beat yourself up. Take comfort in knowing that you're following the advice right from God's word.

Proverbs 2120 comes to my precious Wayland in treasurer or in the wise man's dwelling with the foolish friend of ours, so it's not foolish to use that money when you have a real emergency, and that's really what it's there for. That's right.

In fact, that's a question of the day or Facebook question of the day, you might want to visit us there sometime. Which is how do you avoid the temptation to tap into your emergency fund and Cindy says don't make it so easy to access and give yourself time to evaluate if this is really an emergency.

We have a separate account that we add to twice a month automatically transferred from checking to savings that is more of the non-emergency fund that is used for taxes, insurance, vacations, etc. every time we get some sort of rebate or refund.

We put it in this account so rarely do we have access to the emergency fund kind of in that realm of out of sight out of mind you know it's there but you don't want enticing a regular basis right what it's exactly right. And I love the idea that it's a separate account. It really needs to be.

You don't want to keep your emergency fund in your funding account. Typically your checking account that you pay your bills out of want to get it out into a separate I recommend online savings account that's going to ensure that well it's there just the click of a button you can transfer it into checking but it's not too readily accessible to Cindy's point that ACH free transfer electronically typically is going to take two or three days will that's not a bad thing because that's gonna make sure that you're not using it on the spur of the moment. I think the other thing is with the online savings you can have multiple savings account even for specific purposes. So in addition to your emergency fund. You might have a separate savings account for a vacation fund. You might have yet another one for that car replacement you're saving for down the road and with those online savings account. You shouldn't have any fee so shouldn't be any monthly maintenance fees anything like that and you'll learn well today probably about 1/2 a percentage point a year. Not much but something on the money as it accrues interest.

So that's really the approach I like to take and I think I give Cindy and others were hearing from like Lorene are saying the same thing. That's right, Lorena and Sharon. If you haven't ever visited our Facebook page on the daily basis we post a question up there that we often talk about sometime during the radio program.

If you'd like to respond.

There, we can't promise will read all your comments but we do our best to do that and I thanks in advance. Now, one more time. If you have a question for Rob about anything financial whether it's your vacation or buying a new car or investing more retiring or maybe giving to your local church. Let's talk about those things and more. When you dial 800-525-7000. This begin by going to Wichita, Kansas hey Sally what's on your mind today is that it nationwide help get the push of a bat to dictate to them so I would check and see what you're thinking what am so glad you asked Sally I'm sorry didn't mean to cut you off or you can add something that I can be pretty susceptible to yes ma'am well I am glad you're pausing because especially when you get things in the mail or worse than that if you get an unsolicited phone call.

I'd be very leery, especially these days with so many scams out there targeting seniors you can get swept up in something that does sound really good and it's anything but that. I will say though in this case, medical alert systems are a great idea, especially if you live alone and there. Actually many of them Sally the don't charge a monthly fee.

They typically range in price from $100-$300 and that many of them do, though charge a monthly monitoring fee so you have to understand what you're getting, and whether or not there is going to be a monthly fee do you use a computer. By chance okay to go. Yes, I understand contacting go.

We have some of those computers here in our studio ourselves and what I would recommend is that you get your son to help you do a little bit of research tell them you've got a project for him and I want him to check out the one that you received but I want you to give him a website that I'd like for him to look at because there's a website that's the addresses assisted assisted if you give him that they actually have a webpage devoted to the best no monthly fee alert systems and varying price ranges, and if he goes on there.

He could evaluate the one you received but perhaps there's a better one and I'd love for him to check that out. There's any number of other websites including Consumer Reports that he could check as well. But the idea that you're describing is a good one, and the fact that it's saying there is no monthly fee that's entirely possible I think I'd like for them to do just a bit more research before you invest hundred and $50 and anything so given that website. Ask him to check it out for you because I think you will have some more peace of mind knowing that you could alert somebody if you ever had a medical problem. That's right, Sally. Great to suggestion on your part and a great phone call.

I'm sure that a low number of other people are probably going to check that out today just to make sure they're getting the best option available on that website again. Rob was assisted is that correct answer correct alright so I got bless you, thank you very much, George, Independence, Missouri. What's on your heart today, George project and loud and clear. My question is I'm getting the economic impact for some.

My question is, is, and I do believe I do believe with all my heart I am electric gives some portion of this to a ministry okay my question is to should I you that money ministry. I do believe I am again. I do believe we need to give some of that money to ministry and to I'm looking for an appropriate ministry to give to say like missionary group like logging or a natural lawn like pro-life ministry something like that to give back money in proportion to the Lord's work.

Is this appropriate. Absolutely George, I love the idea that the Lord is made clear to you that he wants you to do some giving with these funds and yet we can never out give God. So I don't think it's ever a bad thing to respond to the leading of the Holy Spirit that were to give away some of God's money, and I really believe frankly that you one of the reasons God entrusts what he does to us is so that we can be a pipeline into God's activity and it's not that God needs our money. It's all here is the cattle on a thousand hills, but it joins our hearts to his and allows us to experience the blessing of being involved in the various places he's at work both in your local community in your church and to the uttermost parts of the world. How do you go about selecting that ministry. That's a great question. We've actually got a giving plan tool on our website that you can download at no cost. If you go to moneywise, click the resources section and look for the tool called giving plan what it will do is help you uncover a couple of things. Number one is what are your passions what are some of the gifts that you've given where you experience the most joy.

As a result of it. Where is work being done to them. Encourage people equip them or empower them in the name of Jesus and really one of the things that are on your heart. I think as you wrestle some of those questions and perhaps you already have uncovered that you mentioned a pro-life and you mentioned a few other things. I think identifying those passions as a starting point, then you want some wisdom as to where to give it and then ultimately how much in terms of where there's a number of places you can go. First of all if you know of a ministry doing great work in any one of those areas that align with your passions in God's heart and then obviously you could just make that gift. If though you're still uncertain as to what that might be a simple call to your local church could be a great option. You mentioned mission work will perhaps there's a missionary that the church actually sponsors that they know is in it. I need right now you mention pro-life maybe either at your church or in another church in your city.

There is so foster care ministry or other pro-life activities, even for the unborn that that they could recommend and you could contribute to so I think connecting with your local church might be a great next step in if you want to do a little bit of due diligence on the ministries you're talking to.

You could go to charity watch and they would be able to give you some more information on that soap I think those are perhaps some next steps that you could pursue as you consider where to go with this but I think at the end of the day. I love this idea of what you're describing George. We appreciate your phone call today. It's nice to nice to hear from someone who wants to be ultra generous and it sounds like you're that guy today. We wish you the very best. Thanks and with the pause for a brief break. You're listening to moneywise and I have less Steve more combat chat with Evan Rosie and Judy and perhaps chat with you. 800 557 cigarette that is robbing you of Freedom and peace of mind.

Christian credit counselors can help where a nationwide nonprofit counseling organization has helped over 3000 individuals in the last 27 years out of credit card debt 80% faster while honoring that that info to learn how Christian credit counselors can help you visit Christian credit Christian credit counselors not call 800-557-1985. You probably have a strategy for your finance your career even your strategy for your getting national Christian foundation and your family maximize your resources to learn how to talk fast and powerful to actually put a quick way from his position a million times consistently with his character that I was blessed me so much I can tell in his book the names of God actually quoting theologian Nathan Stone that he writes on holiness.

All the attributes of deity, words, and I want to hear this carefully is not just one… Attributes. This is something else. I never really thought tribute. He's got yes he only just everything he does not want to be in every attribute is got to listen to this. He further argues that holiness would degenerate into cruelty, holiness would become crap holiness would degenerate to accomplishing God. The perfection word is the place we like to think where timeless wisdom meets today's choices and decisions can help walk you through some of those give you some thoughts on our part to blue cola thoughts and principles to our to our best best of our ability to give us a call right now 800-525-7000 Rob we were chatting a little bit about researching ministries, determining what many ministries to give to ministries that review other ministries who watch how they function and and you gave us one. I believe what you gave us was ministry know what address is good, was ministry would be a great option, the Evangelical Council for financial accountability which both at the both of them honest moneywise, and kingdom advisors are extra certified and so it's a great way for you just to learn a little bit more about these ministries, and specifically the financial accountability associated with them, but I would always look for not only ministries of great reputation with good financial strength but also where the lion share the past majority of what's coming in is going right into their programming and ministry activities in the name of Jesus so love the idea of giving generously but we also want to be wise and are giving as well right so let's X the E or ministry just a couple, Reddick, Holland, Michigan have been nice to have you with us today today sir, how can we help you and Michael. I have a question about my wife on the phone would truly be written a current employer, and Nancy has a 401(k) with the old employer, and we want Benjamin rolling over would be question Evan, the first thing you have to look at is whether or not the 403B with your wife's current employer will allow you to roll in a 401(k) from a previous employer as far as the IRS is concerned there is no problem but not every plan administrator will accept a 401(k) or 43B from another administrator and so you want to ask that question if they will like that idea. Frankly, because then it's all in one place. You can make sure that it's being invested properly according to the options available to you and you obviously want to select those investments inside the plan that really match well with your risk tolerance, which is really how much time do you have between now and retirement and how much risk are you willing to take for the reward that you're looking to receive during that period of time as you get closer and closer to retirement.

You want to get more more conservative but having everything in one place just simplifies things and make sure that your investing properly. If though they will not allow you to roll that in the other option which I don't have any problem with that said, a great option is to roll it out to a traditional IRA and individual retirement account, you will open the IRA will then get the transverse paperwork to do the rollover and the check will be sent from the custodian of the 401(k) to the custodian of the IRA you will never take possession of the funds and therefore it's not a taxable event at that point, you would need to then deploy those dollars in investments again that are consistent with your goals and objectives. You can open that IRA.

At any institution you want Charles Schwab or Vanguard or TD Ameritrade anyone that made some sense to you, low-cost, high-quality type institution so hopefully that's helpful to you, but I would do one of those two options you have and we really appreciate your phone call today. Thank you very much, Rosie, Judy, Chris, were heading your way. Please stick around. Stay with us but we have an email here Rob it's from Kathy. She says you always talk about retirement accounts, but I was wondering if it would also be good to have some money invested in something other than a retirement account. We think well I like stocks and bonds that asset class for the both of your long-term investments. I retirement savings. It's going to be the most stable of the most proven way to build wealth over a long period of time with the least amount of risk, want your fully funded there. You could look at other asset classes like real estate or other option is right back with Apotex 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 you have money in a retirement account for just a general investing. You know, the stock market sometimes is 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 since 1990 sound mind investing in stocks offer financial wisdom for living well sound mind investing.RG hospitality Dustin Willis and Brandon Clement say it's the simplest way to change the world gospel centered hospitality makes a powerful witnessing statement as we open our lives and homes to the simplest way to change the world will show you how you can be hospitable even if you don't have the space for most people are more likely to step into my living room sanctuary. So why not read the simplest way to change the world more Moody you feel stuck. I get tired of going to the motions of faith you want to make real progress in your life and not know where to start is a book to help you grow spiritually help others grow as well gospel as a starting point of the Christian life rather than the main point of how to grow book by Darrell – that's Moody publishers.O RG 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 the money might help you find those answers and more can ask your questions and access helpful articles and minimize podcasts. Sounds great money. Okay, searching for moneywise in the abstract is on John's joining the list of others in the Pahrump administration transportation Sec. Elaine Chao is resolving saying she cannot set aside the pro-drop insurrection that occurred Wednesday at capital US registered its highest death, yet from the coronavirus on the very day of that violence in Washington, California, particularly hard-hit, so was Arizona was skyrocketing rocketing death side infection.

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This is SRA news is my 11th sex and faith it is impossible to please him comes the God that is a real mortar of those who seek 800-525-7000 Rosie Fort Myers thanks for your patience today. How can we help you recall years old, married employee are and employer retirement account. I know 401(k) with $20,000 savings close to $200,000. We use that money. Why and what also would like to purchase the house during all anyway that you know stating any dates 401(k) money towards retirement or what type of retirement plan would be good for my ration how much money I could put in their second question is can I retirement plan, if any, and I contribution it.

Somehow, my income, more money on think I'm going to continue have very good Rosie you are you self-employed or you work for someone and they just don't have a retirement plan company-sponsored plan. I work for a company and they don't have okay does your husband work as well.okay but he does not have access to a retirement plan either correct only does okay and is he contributing to okay what what type of plan to see have access to his 401(k) on Monday but I don't think much okay do you know the percentage of his paycheck. It's going into that each month all that information. I don't have okay well I would look at that because he's gonna want to maximize as much as he can. Going into that account even if it's more than you normally would, because you could look at it as if he's contributing for you as well and you live on more of your income and put in you know more of his the 401(k) contribution limit is 19,500 a year, but there's a catch up provision for those age 50 and older of $6500 so you'd be able to put in a good bit of money. There are 26,000 per year that you could you have available for you and your husband when you reach retirement so you may want to look at boosting up the percentage of his income that's going in yellow even if it's more than you would have just because that's a great option.

It's coming right out your getting a tax break for it and it's going to grow tax-deferred. Now let's look at the fund you have available.

Talk about the best options for you as you think about how to allocate those funds you mention you have about 20,000 in an old 401(k) and then you got 100,000 in savings is that right close to 200 okay and how much of that 200, roughly, do you plan to put into the home purchase. I will take out and probably hunger for the Apple okay so about hundred you'd want to put 100 into retirement and 100 into the house.

That's what I'm thinking yeah well I mean I think the next step is probably to do some retirement planning to figure out what you need yell at you said that you're starting late know why is that, did I see some notes here and offer my producer that you just came to the US. 10 years ago.

Is that right now go that I might reach our country but here I couldn't build much money, so as long as you been working in contributing to Social Security for at least 10 years you will be eligible for Social Security benefits and obviously as you continue to work. You know those higher earnings years will replace the lower over time so that will make up a portion of it. Once you reach that point. Beyond that, though, you need to have a goal for what you're trying to save to supplement the rest of the income you'll need in retirement. Whenever that point comes in that's going to really help you understand what you're ultimately trying to save deal with in any type of retirement account be at the new account you have access to or the old 401(k) or your husband's 401(k) so I think doing some retirement planning was someone there in Fort Myers. Rosie would be a great next step for you and you could connect with a certified kingdom it's always good to know what your target is so that you can make a plan to get there now. I would look at rolling that 401(k) over to an IRA, an individual retirement account. That's a nontaxable event and then you and your husband could start contributing 7000 a year each to both that IRA wanting your name that's what you would contribute to and then a separate traditional IRA that he would open up perhaps to contribute as well so 7000 a year and you could still contribute for 2020 until you file your 2020 tax return so you can actually put in 14,000 this year.

Seven for 2027 for 2021 and then you can each do that. So a total of 28,000 would go in beyond that, what you may want to look at is maximizing the contribution to his 401(k) and maybe living on some of the savings that you have. To the extent you're putting in more than you have the ability to, and that's can impact your ability to cover your expenses so if you put in you know as much as you possibly can. Each year into his 401(k) and that pulls his take-home pay down such that you can't cover your budget, then you'd supplement that with the cash you arty have the Geordie paid tax on the does that make sense to you.

Yeah so I think between his 401(k) and the two IRAs you know those are to be your best options with you not being a self-employed person. If you wanted to do, though, something beyond that and get a tax advantage situation.

I would talk to that financial planner.

I recommended about perhaps an insurance product because an annuity would probably be the only other way that you could get some money working for you on a tax-advantaged basis. If you wanted to use a big chunk of this savings that you have but I think between all of those you can get a good bit of money working for you and you all still have 10 years or so, your healthy, the Lord Terry's where you can contribute to to these plans and then continue to save over time. So you have quite a mistake when you reach that point. Rosie, thank you very much for your phone call today.

We wish you guys the best continuing on Judy, your next caller today. What's on your mind this question. It's a little different. I want to know how you feel about someone 76 years old. I'm living in an apartment and I would like to purchase a house where there's the nonfinancial in the financial side.

Start with the nonfinancial are you okay with the overhead. The upkeep and whether it's the longer the maintenance that you would have to take on in a home versus an apartment if you thought through that year. I have mainly because the house my husband passed away. I sold our house because there were too many tears and made an apartment that I had to do that because he was 100% disabled had to arrange to have other people getting in that way. So you have thought through this right and then Judy, how much do you have available to put toward a down payment on this purchase. There I was actually thinking about going to AA the hundred percent financing. Okay, let's do this were up against heartbreak, which means we gotta pause for just a moment we come back I'll give you my thoughts on chat some more with Judy about possibly moving from an apartment house and take calls to find buying a home is the largest most nerve-racking purchase.

Most of us ever make. It doesn't help that you're entering a maze of unfamiliar words and confusing options that can leave you intimidated frustrated and afraid.

You 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 button moneywise theory. I need some help will sometimes I feel like I can't get a handle on my money. I mean where is it all go. It sounds like you need to moneywise help you plan your budget and track your spending three dollars you spend every morning on coffee every morning access to fame difficult financial advice sounds awesome. Let's do it. Okay, searching for moneywise in the abstract This is very Maguire I am a car guy here to help me understand God's purpose for your life to the eyes of a layman, you consider that when you share your faith with someone who's lost the presence of God is there, in the very same manners when you participate in the Lord's supper.

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There yeah Judy so you're looking at potentially a VA loan, 100% financing. I guess the first question is just the approval process. Do you have documented income to show or would you be showing retirement income.

I have here in my charity okay yeah and so that that's certainly possible, as they evaluate your readiness for a loan of this type and the others not anything that prohibits you from taking out a mortgage at age 76 I think the question is just, you know going into a purchase like that with 100% financing, recognizing the market has been doing quite well. The real estate market in most parts of the country is just been really moving higher considerably over the last decade or more. And so you know, arguably you're buying near the top.

If we were to hit a recession.

Could we see a dip in home prices that would cause you to perhaps be upside down, meaning you owe more on the mortgage than the home is worth. Well, yeah, that's entirely possible, although if that's a home you plan to stay in for the rest of your life based on what you know today than that may not be as much of a concern, but I never like going into a home without having some sort of a down payment both to indicate that you have the financial ability to do it and to give you a bit a cushion so that if something were to happen in terms of home prices moving down you don't find yourself stuck in something that can't be sold because you owe more than it's worth, I think. Beyond that, it's really a budget question feel if they will approve you for the loan and they likely will go does it fit into your budget and knowing where apartment prices are rentals these days of being very expensive and interest rates being so low it could be that you do in fact have the same or less in terms of the monthly outgo. But you obviously need to understand that and make sure that it fits well within your budget so you don't create some unnecessary strain.

So as long as you consider the upkeep you considered your ability to qualify for the loan you consider the fact that you're pushing it right up to the edge and therefore it could at some point to depreciate if we hit a recession and therefore you be upside down for a period of time and it fits in the budget, then I'm not inherently against it if you fits where you feel like the Lord is leading this all that makes sense though there okay and I think here department for a small one bedroom Mark 1200 amount I can find.

Yes ma'am, I suspect you kids. We appreciate your calling and listening. God bless you in the days ahead. Thanks Judy and if you get further down the road you still have another question. Feel free to give us a call back Indianapolis hello Chris, you have a question about owning some gold about all I'm retired with modest IRA you like my body is actually quite that a lot of that I or purchasing gold in their way and then actually thickly our parents about you know I'm not a big proponent of that, Chris. That's not that I'm entirely against it. I just would rather you have money that's in a more liquid form and you know there are some disadvantages to owning physical gold. Obviously the risk of loss or theft.

You have to secure it and make sure that you understand the risks associated with that. There is the insurance because if you keep physical gold in your home or business. You may want to ensure it that's obviously an added expense. There's obviously the premiums that you would pay both to buy and sell. So dealers typically charge a premium over the spot price of the commodity or precious metal to sell or buy most forms of gold and so you have to factor that in. When you're considering the transaction.

So I think for that reason and because of the illiquidity of it, you know, I prefer just historically speaking, based on the performance of a well diversified stock and bond portfolio over the last hundred years. I prefer that approach where perhaps as a hedge against inflation and a falling dollar, you do have an allocation to gold, but a typical allocation for the average investor is probably no more than 5%, but you could do that in a way that's actually tied to the underlying movements of the price of the gold without taking physical possession. There's plenty of exchange traded funds that move in sync with the price movements of gold so you benefit as gold rises or falls, but again, you don't have to pay the premiums and secured an insured and you know, take possession of it in your home so again I'm I get against it. No, but it's not my first choice, I'd rather see you go a different direction. I will also say in these periods of unrest and uncertainty, especially going through the pandemic we just experienced your always good to see a huge rise in the number of solicitations for buying and selling gold just because this is what people flee to in times and periods of uncertainty doesn't mean it's any better of an investment in terms of the overall performance and that the volatility yelp even though were hearing more about it right now. Rob if you wanted to purchase school, but didn't want to take possession of it and where would you go.

How would you find well the easiest ways to bind exchange traded fund that tracks the price of gold to an example would be the ETF GLD which basically just moves in sync with the price of gold. There is gold behind it that the fund company owns but you don't actually take any physical possession you're essentially just benefiting from the rise in the fall of the precious metal as it moves around but it's trading like a stock so you can buy or sell it as long as the markets open any day of the week. Camp Chris.

We appreciate your phone call today. We wish you the best as you mull through what you want to do in that regard.

Thanks, Cape Coral, Florida hello Keith, have a question for Rob and one quick question. Are hard on that. Yeah Keith. I appreciate the question you know where and we believe that we should be givers that the Lord modeled that as the ultimate giver when he gave us his son who paid the penalty for our sins on the cross and so when we give. I like to say it calibrates our hearts to his heart. So then were asked the question.

Okay, how do we get well. We know that the tide was under the law of Moses were now under the law of Christ. And so I think systematically and proportionately is what we see in the New Testament and I would say that systematic giving should start with the local church and then we give thought. Beyond that, sacrificially to other ministries and causes that are on God's heart that align with our passions. Now what about Social Security. Well the tide. If you're following the principle of the title is based on the increase and so I would say, as the Lord provides increase then we give systematically and proportionately. You might say, well, a portion of that Social Security that I'm receiving was me paying into the system. I would say you're absolutely right, but you have a difficult time figuring out what portion was yours. And what portion was actually the gain in that money over a period of time that's resulted in these payments to you for the rest of your life. My approach is just to say the Bible doesn't make special provisions that exempt those on fixed incomes or government subsidies, it simply says honor the Lord with your possessions, and with the first produce of your entire harvest that comes from's King Solomon, Proverbs 39. So for me I would look at it as God's provision your increase and then I would give as the Lord leads, but at the end of the day it's the Lord's money and he doesn't need it. What he wants is your heart and so I would ask you to go to your knees and just asked the Lord what would you have me to do and then follow his lead. What if you go to your needs.

These asked God what to do when he says call Rob more than I would refer to the answer I just gave the last two minutes at a God bless you Katie, thanks very much.

Great question Nick in West Lafayette, Indiana. Your final calling today.

What's on your mind. I thanked her my call yet.

My question is around the change in the presidency. Typically you change from one party to another party in our heart that it doesn't really impact the stock market that much, but I feel like the way which that each party you know basically put policies in play their very different from one another starts wondering what your thought is on the stock market is not changing that much in a continues to increase over time will we know Nick can you bring up a great point is that the market is cyclical, meaning that it always moves in cycles and those cycles tend to run even the were beyond that in this one in 10 year increments. And so every 10 year period has its periods of unrest you were obviously in the midst of an unusual run one right now, but it seems like that's there always that way and we have periods of boom bull markets and we have periods of Boston bear markets and those bear markets can be short-lived to like that the pandemic we experience that one was a very fast bear market the fastest in history, or they can be when they're more systemic in nature much longer. Two or three years, but at least historically speaking, they always rebound and move to higher ground and so trying to predict whether this time is different and should I try to time the market as opposed to just staying with a long-term well diversified investment strategy. Is this not a winning proposition. I would say as long as your invested according to biblical principles long time horizon steady plotter you have the right risk tolerance you have the right investment allocation that syncs with your goals and objectives. I would stay the course despite a change in the presidency. Despite the change in the Congress and in fact those that I look to think that working to see GDP increase considerably this year and actually the stock market going to do quite well. Who knows. That's why we take the long gray question that God bless your buddy thanks very much for your phone call today. He wants live.

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