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Secret Consumer Scores

MoneyWise / Rob West and Steve Moore
The Truth Network Radio
January 15, 2021 7:03 am

Secret Consumer Scores

MoneyWise / Rob West and Steve Moore

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January 15, 2021 7:03 am

We all know that our FICO score has a huge impact on our finances.  But most of us don't even realize there’s another secret number we each have as consumers that could be just as important. On the next MoneyWise Live, hosts Rob West and Steve Moore explain this little-known measurement and how it can affect your money. It's about secret consumer scores on the next MoneyWise Live at 4pm Eastern/3pm Central on Moody Radio.

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We all know that our pico score has a huge impact on her finances but did you know another number could be just as important, and it's all very hush-hush. That's right. It's called consumers more. Most of us know that we have this making them advisor to Pres. Rob West explains this little-known measurement affect your money that will take your calls at 805 five 7800 525-7000 nine Steve Moore scores next right here moneywise line by Rob learning that not just consumer or learning that just credit scoring groups are watching us so we sort of knew that. But others are keeping tabs on us as well. As consumers well. It is a little area but I think most of us know that our buying habits can affect what ads we see, especially when online shopping. Somebody or some computer program is always watching about what can be unsettling is realizing that these consumer scores can impact other things, not just our buying decisions and that this is really under the radar. In fact, Steve.

Another name for this is secret surveillance scores okay so who's doing the surveilling well. Several companies in this space with names you've probably never heard of sift is one essay that global is another and retail equation is still another. You see, they compile huge amounts of data on you mostly from online sources and from that they determine your secret consumer score which they then sell to retailers and others who want information on your buying habits.

Sift is probably the best known of these companies.

They specialize in protecting companies against fraud, which of course isn't a bad thing in and of itself.

Sift says it concentrates more on transactions than people. Okay what about the others yet is a global rate your value as a customer and retail's use that retailers I should say use that data to determine what type of services that offer you and help build treat your requests and even complaints.

They look at how many times you call the customer service line and then if you've recently been on a competitor's website. Retail equation is another one that tries to identify customers committing fraud. Big retailers use it to determine whether they'll allow you to return an item you purchased, how you commit fraud by just returning an item. Yeah, I imagine by things like using an item for a period of time without any intention of keeping it up possibly making false claims about defects. If you do that several times it starts to lower your score. Return fraud actually is estimated to cost companies listen.

This nearly $25 billion a year so that blue suit. I bought for just one wedding and then sort of gave it a fact that Cassie had already on the list are what else should we be concerned about. Well, your secret consumer score could be used to determine what offers you receive maybe even the prices you see when shopping online.

But it's also another measurement that some employers are using when making hiring decisions, factoring in where you live and what Internet browser you use as indicators of whether you'll be a good employee. Talk about profiling and some landlords are also using it to determine whether you're likely to pay the rent on time and how much you can afford in the way of future rent increases. Now it's really starting to have a financial impact, that's right. And there are some other examples, the healthcare provider Stephen health insurance companies may use your secret consumer score to assess your value as a quote and quote investment. Not sure how that works.

Since that industry is heavily regulated, but there watching. For some reason and auto insurance companies could raise your rates if you use driving apps like ever drive and drive smart. And then you lower and then you score low with them indicating poor driving habits while well what if anything can we do about the secret consumer scores. Yeah well this is where the score really differs from your credit score you can do a great deal to improve your credit score, like paying your bills on time, keeping your balance is below 30% of your limit on credit cards things like that but with the secret consumer score. It's not as clear-cut. Experts recommend, though a few ideas. First, make sure you really shop around before making a major online purchase and be wary of ads you see while doing it because they're not likely to be the best deals out there. When you shop online. Try using a privacy window in your browser. Your shopping can't be tracked. That way the offers you see may not be based on your secret consumer score and then number three well tell you your calls next to moneywise live with Rob West 800-525-7000 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.

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We mentioned three things well the first two we said number one is make sure you really shop around before making a major online purchase and be wary of ads you see while doing it because they're not likely to be the best deals out there. And when you shop online a truck using a privacy window in your browser so your shopping can't be tracked all modern browsers have the ability to toggle on a private browser and that way the offers you see may not be based on your secret consumer score because they may not know who you are and finally think about adjusting your privacy settings for your smart phone to prevent background data from being shared. But one thing I noticed today because as you know, Steve, we have an app now the money was Alpine going give a plug it's out there in your app store go download it. It's a digital envelope system, but I was in there looking at it because we got another five star review today which I was excited about, and there's a new screen on your app download page that tells you exactly what information may be being collected about you by that particular app and so this is part of Apple's desire to become more transparent around privacy and were starting to hear about when apps are collecting information about you tracking your behavior collecting data for from you. They want to disclose that and that's a good thing because privacy is more and more important all the time but now you're not saying that because we designed and invented this app that we're telling the app to go out and dig up information on people in the known or not at all. I'm just saying that's a new disclosure on every app that Apple has added that I just noticed today Tanger what information may be collected about you by that particular app completely different from our app which is out there and would love for you to go get okay and if you are that person and you know who you are.

If you went out knowing your mother-in-law was coming to town and bought that crockpot and then tried to return it. They know who you are and we know who you are just going to be embarrassing if that information.

Question is, does your mother-in-law know 855 7000. Let's see, Anoka, Minnesota hello Carrie good to have you with us today. How can we help you wondering how to determine when I want to advisor and think we should find one, and I'm not sure we need one? I know you think you got down there if I didn't cry. But I don't know what question that's great yeah couple thoughts here in the first of all, when to get a financial advisor, you know, I think coming. First we had to talk about the different types of advisors we got financial planners we got investment professionals.

We got insurance professionals, tax and accounting professionals in the estate planning attorneys know when it's time to do your will update your will. If you think you need a trust, not to mention healthcare.

Sarah gets in, living will, durable power of attorney.

Obviously, those things really important that you have an attorney and estate planning attorney that draws those up. That's really critical as to taxes and accounting for most people, I recommend just to take full advantage of every deduction opportunity to minimize taxes and yet pay the full amount you owe. I recommend just about everybody unless you have a very simple situation.

Use a tax professional when it comes to insurance I think anytime you're going out looking to acquire insurance early from life insurance to health or long-term care, having an independent agent who can look across all the companies find the highest rated company. That's the best fit for you from a cost standpoint is really key.

The rest is around financial planning and investments in your I think as you are moving toward retirement, especially when you're in your peak earning years I having a financial planner that you can sit down with even if it's not an ongoing relationship, but doing a comprehensive plan in the maybe updating that a couple years later, I guess really key. Just to give you peace of mind that you are on track and the you know what your financial Finish Line is and that you're working toward a goal. I think the other role of financial advisor can play especially with a married couple's third party accountability just to have somebody as a sounding board to perhaps ask the questions that aren't being asked if one person is little more familiar with and comfortable with financial affairs usually there. The dominant person in making decisions in the other person can feel lost while having that neutral third-party advisor that's now asking both husband and wife regardless of which one is more comfortable than the other, how they feel and whether they feel like there, you know, personality and values and desires are being reflected in the plan. That's really key because often times that can be lost and then I think finally you know when you get up over him, to say the hundred thousand in investable assets certainly 200,000 investable assets. I think having a competent professional who can really help to make those investment decisions and build the portfolio not based on their objectives, but based on your goals, objectives, values, priorities is really key because that's a lot of money and so you don't want to put that on autopilot. I think having that professional to bring the expertise alongside you is really really key so I know that's not definitive, but hopefully gives you some idea of when you need an advisor and what type out the questions to ask. We do have a guide, if you go to kingdom advisors.com and you click find an advisor, you'll see a downloadable PDF that has a number of questions that you can ask hopefully that'll be a helpful resource to you Karen think in general you want to know what experience do you have what is your track record of her talking about investments. Where do I fit among the rest of your other clients of my small fish among the rest of your clients and therefore I'm going to be perhaps passed off to somebody else and who is that or am I gonna be at core client. How do you want to communicate with me and you know here's how I want to be communicated with them. Is that okay and I think the other thing is I would want to make sure that that advisor spending a lot of time getting to know you and asking you questions as opposed to trying to sell you on their process or anything else, because really the end of the day and advisor is to reflect what's important to you in the context of competent biblical financial advice so I know that's a lot of information, but I hope it's helpful to care and God bless you, thank you so much for calling us today Fort Lauderdale Sarah.

We appreciate your patience and what's on your mind.

Yes ma'am, we sure can hear us show regular credit report and credit for it hundred and 31 insurance claim mold to chemistry replace the pilot insurance company people and they convert well very hard to find insurance and everything that the consumer score. Copy unfortunately it's not something you can just buy your download like you can with the credit score from one of the three bureaus were through annual credit report.com. According to the legislation, the came out in 2019. They have to provided to you and it no cost. It's not the case with the secret consumer score that we've been talking about today. Unfortunately, it's a bit more under wraps and not something that has a can consumer facing a component to it, and specifically related to insurance. Sarah, our team couldn't find anything about insurance claims, specifically affecting your secret consumer score, but I wouldn't doubt it, and we arty know that the scorekeepers are reporting to the insurance company so why wouldn't the insurance companies report back to them again. I don't know that specifically, but I'm just saying in general.

I wouldn't be surprised. So bottom line is some I wouldn't be surprised if repeated insurance claims could affect your score. But based on our research in putting this program together today we didn't come across that specifically Zeta anything else we can help you with RA. Thank you, much less yet, just that information just isn't available to the general public. Hence the word secret we we discussed this so if you look it up on Google but I think at this point we probably need to take a break. You're listening to moneywise and I we are indeed very alive today because it's Friday, and Friday always has a special know of special feeling about it. So were especially happy to head with us today. We can help with that as you appear for the weekend give us a call 800-525-7000 800 557 2011 Jim today much more of this, 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. I.org. And if that is robbing you of Freedom and peace of mind.

Christian credit counselors can help where a nationwide nonprofit counseling organization has helped over 3000 individuals in the last 27 years get out of credit card debt 80% faster while honoring that that info to learn how Christian credit counselors can help you visit Christian credit counselors.org Christian credit counselors not call 800-557-1985 fast and powerful, and sharper than any two-edged doing. Here is a quick way for second treat as holy because what.finally got through to me was that I treat you as holy, you will treat you as holy.

You don't treat you as holy, you cheaply like you don't matter much like you're not I treat you as holy.

You treat yourself only. That's what you are doing treat ourselves as such, began to change before the crossroad of the hugest season they can be distracted for us and myself to do that to be that particular environment will treat you special and I think you will treat yourself like I hear what I'm saying to people we have missed you were the only experience with auditory joint. Now that faith is relations back to moneywise. It's always great to be with you. Whatever your concern?

Problem. Here's her phone number. We have some open lines at 800-525-7000 800-7800 525-7000. We've been talking about some secret stuff Robin any additional information on this concept of the dweller. Our town did come across so the way that you can request the reports on you from each of the companies that we mentioned today and sifting data good Zeta global retail equation to others. I work in a post that inner show notes today give us until tomorrow to do that, but in some cases it's an email where you actually have to send an email and request the information they have about you.

In other cases, there's actually an online form where you can request your report, but I was just reading about it a little while ago and the reporter actually got their hands on their sift report. It was 400 pages long included things like every interaction with somebody that they'd contacted on Araby and being in all of their orders through an online order delivery system.

In one IP address that is made fascinating information what's being collected about you whether or not you turn in your homework in the fourth grade right regretting you've ever done is there and who knew who knew our good works for her. Do you Robin also for our director of looking into secret stuff and that's it and that's Jim Henry who really does a lot of research for some great information and will try to get all that posted at least the contact information posted on our website by tomorrow sometime moneywise.

I doubt ORG let's go south to Naples Florida Zeta what you question for Rob. Anyway, I agree. I think you might come like to yeah are you talking about, so a service like LifeLock or something like that.

Come back. It will not long yeah interesting. Well, here's what I would recommend you know you can freeze your credit report no cost. Beginning in 2019. And so that's something you could do that would prevent anybody from opening a new credit line in your name without your permission. Essentially what happens is a four digit pin number will be attached to your consumer credit report file so somebody tries to open an account, or take out a home equity loan against your home in assume your identity and try to do that impersonating you they would is no doubt that whoever wasn't looking to extend that line would want to pull a copy of your credit report and when they tried to do that they would be asking that person for the pin number which they would not be able to provide and that would stop it in its tracks so you would need to contact each of the three credit bureaus experience Trans Union and quick facts and tell them that you'd like to put a freeze on your credit report to create a little bit of a hassle if you ever wanted open an account but certainly worthwhile to stop fraudsters. That's probably the Best Way, Zeta. I'm not familiar with anything specifically about your home title apart from home, title insurance, and that's really the purpose of it. You know there's been some fraud in this area recently. But you know I don't know that there's anything necessary beyond the typical title insurance that you would normally get when you buy a home in terms of LifeLock.

The service that's provided that'll run you between 10 and $30 a month.

They offer legitimate service and can be helpful. I would say though for me. I do limited to only those people who have actually had their identity stolen. Bottom line is they really can't do anything you can't do yourself. You can monitor your own credit rating and credit report of annual credit report.com.

You can freeze your credit reports.

Like I mentioned so I don't think it's a necessary expense of $10-$30 a month.

Given that you can do it yourself and especially if you've not actually had your identity, Zeta. A lot has been said and written about this type of insurance, title block, title block of fraud and this kind of thing the jury seems to be out most people agree, as Roger said that it's unnecessary and sell some ever is an issue or problem led to a great question. 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 more, how should we as Christians think about investing. What if we could invest our money in a way that aligns with what we believe that Eventide we believe it is possible to love God and love our neighbor in the very practice of investing redesign investments for performance and a better world so you can invest for the future with a sense of wholeness and purpose. We call this investing that makes the world rejoice.

More information is available@investeventide.com authors Robert and Nancy while the movement heard many life stories.

They all point same God's hand we see in everything so we can trust him to write a story.

It's encouragement you need God to control our lives to be written for our for his glory. You can trust God to write your story by Robert and Nancy will order your copy today. Well, most of us aren't Bible study genes. That's why Moody publisher is great in the everyday Bible commentary series tantalizing Romans in Revelation. Every commentary brings an important historical background insights from the original language help with difficult messages every day Bible, there is a reason for people like you, more publishers.com.

I need some help will sometimes I feel like I can't get a handle on my money.

I mean, where does it all go. It sounds like you need to moneywise help you plan your content and track your spending three dollars you spend every morning on coffee, not every morning you get access to free difficult financial advice sounds awesome. Let's do it. Okay, searching for moneywise in the abstract, drugs, drug governors, and some plates of cold open National Guard declared states of emergency and close the capital billings over concerns about potentially violent demonstrations, though details remain murky demonstrations are expected at state capitals beginning on Sunday and living up to President-elect Joe Biden's inauguration on Wednesday. President-elect Biden will use the Defense production act to expand the production of a covert, 19 vaccine and vaccination supplies as part of a wide-ranging plan to deliver on his pledge to vaccinate 100 million people in his first 100 days. Biden's first and perhaps biggest challenge in getting there will be addressing vaccine shortages and health systems across the United States talks closing lower on Wall Street, the doll felt 177. The NASDAQ off 114.7 S&P was down 27 this is SRN use saving managing what you have.

Investing what you have here to discuss with you and help you with that if they call first 800-525-7000 go to see how about high Ridge Missouri John, welcome to the program yes yes a government that okay my wife is getting ready to retire and she had a 403B in a 401(k) and praise God we are debt free, but we have some investment opportunity and I was wondering if should we go with like a line of credit or should we take out a law or should we get into that retirement that that yeah that retirement okay so let's talk through this. You said your wife is retiring soon. Are you continuing to work.

I am okay and how far away as her retirement, her retirement is in one week. Oh well, okay, congratulations.

What about you and I want you plan to continue to work.

I have at least another 10 years. Okay great and what is she amassed roughly in these retirement accounts. You know, about 420,000 significant amount of money and what is said, what is she believe God has for in this next season is she going to continue to work part-time somewhere else just love the things yet she darted filling her calendar without volunteering at our church letters. A couple of food pantries in our area and her father is in his 90s and you know so that if you got time there should be a synonym as well have a new grandchild on the way while she's getting busier than she's ever been and I suspect she all right have you if you run a budget based on your current expenses and how that will you relate to what your new income will be after she stopped working. We have okay and what shortly there actually is in a shortfall. There is there is about $1500 a month that we will have, to be able to continue to do whatever that would go toward a payment or you know I'm not exactly sure.

Maybe we wouldn't have to take out a loan or line of credit downshift so what I'm hearing this not what I'm hearing is she's going to stop working, she's no longer going to collect a paycheck but you're still going to have 1500 a month surplus with you. With only your paycheck is at right and whatever she would draw from that 401(k). Okay Sue, but the guy wasn't factoring that in so how much were you planning on pulling out each month from the 401(k) about $2500 okay yet that's a little more than I'd like to see you take what I'd rather see you take is about $1400 a month, a thousand less. And that would be equal to about 4% a year on that 420,000 you will have a financial advisor, an investment professional you work with. We are looking into that. Okay, know there's a kindred kingdom.

Advisors and not far from us. Great that I've been listening to chauffeur a lot of years and we were looking at looking at going to them. Here's what I'd like to see you do take a hard look at that budget and really look for areas you can perhaps dial back on that that you necessarily have to, but if there's some obvious places want to get your expenses as low as possible. The good news is that based on 4% here on 420,000 you should be able to pull out 1400 a month without a problem and never impact the principle of its managed on that basis to generate income and will be a period of time where the stock allocation is down.

If the market is down, but you don't need to pull any of that out you let it ride over the long haul. You should be able to average that for 5% a year, which would give you that. 14.

$1500 a month with that you should be able to fund your lifestyle and still hang onto that 420 grand. Now you that will not give you 1500 a month extra, but it may give you 500 a month extra and I really don't see a need for a line of credit here John to me and I think you'll have plenty of assets you're obviously still continuing to build your retirement assets over the next decade, and the good news is she can stop working. Enjoy volunteering and serving in the church and family. You guys can convert her hard earned savings to an income stream and that should last the rest of your life.

I think the key will be deciding at some point.

How much is enough and look and increase your giving but at this point I don't see the need for a line of credit and I would definitely connect with that certified kingdom advisor John are either of you getting close to two retirement age when you would start to take money from your Social Security. She said she's two years away two years away 30th 60 years old. All okay so I think the key here is she's not gonna experience any kind of prepare any early withdrawal penalties on the 401(k) when she rose into an Ira but I would suggest she not take the Social Security at 62, which is going to mean about of 25% reduction from full retirement age. Since you don't need the money because you can now you know people and that from the 401(k) and just let that continue to grow at about 8% a year. John we wish you guys the best.

It sounds like God has really blessed you in your moving in the right direction here.

Thanks so much.

And if you're wondering about how to find the ACK a certified kingdom advisor in your area. Just visit our website moneywise.org and look for the window. Maybe about halfway down the page, I think, and it says connect with that statement, can find the CK find KA. Okay, if you looking for Rob West's personal home phone number.

Well, after being a specialist to get that commute give me a call after the program to Hooksett, New Hampshire, Deanna, thank you very much for calling. How can we help think I don't know why you would do that necessarily you know the 401(k) is essentially the tax deferral vehicles so you get the tax deduction when the money goes in its acts is like an umbrella. If you think of the taxes is the rain, the umbrella is over the assets and they kind of go bounce right off the side of the umbrella and don't touch the investments, which means the investments inside that 401(k) are growing without any drag of investments being paid on any profit you have along the way. Now they ultimately the government gets paid because as you make withdrawals in retirement. It's gonna come out as income you'll pay it tagging a federal income tax audit and state.

If you have it, but that's basically the way it works now the annuity is kind of putting attacks you know deferral vehicle inside of the tax deferral vehicle. It's just not necessary. The only reason you do it is if you thought the investment returns either in the protections on the downside, or in the returns on the upside were going to somehow be better than the 401(k) but I just don't see it that way. I think the cost in the investments and strategies. Not to mention the complexity of the annuity is not as good as the investment options inside your 401(k), so I just stick with the TSP person that helps you. Thank you very much with the positive redirect back takes more calls lots of time to do that. This is, you probably have a strategy for your finance your career even your strategy for your getting to know Christian foundation and your family maximize your resources to learn how to moneywise.org 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 lead you intimidated frustrated and afraid. You can take advantage of navigating the mortgage mates by Dale Vermillion helps you clear up the confusion on rack your nerves and make the best mortgage decisions possible with confidence navigating the mortgage made available when you click the start button@moneywiselaw.org is very hard here to help me understand God's purpose for your life to the eyes of a layman matter what your station like God's given you influence the lead people to this commission you with the great commission is commanded to love your neighbor's and he's promised you that he'll make everything in your life work for good when your reason for being is the redemption of everyone around and if you're a believer your full-time ministry 24 seven because everything you do every moment of the day leads people to away from God. This dating frog. It was never about us is about you about your ministry because were not a ministry were resource. Your ministry is all about building God's purpose for your life. Every moment of every day outside the job is revival outside the walls entered by moving everyone and everything. Help doing that go tomorrow.

TW.com you reach people who call themselves Christian but don't know Jesus find out by reading the unsaved Christian Dean, and Sarah was a cultural Christian today. He pastors a thriving church that he wrote this book to offer starting points that lead to deeper conversations you'll be equipped to confront cultural Christianity and lovingly share the gospel to the cultural Christians in your life. Cultural Christianity is a huge mission field in desperate need of missionaries get your copy of the unsaved christian@moodypublishers.com you feel stuck.

I get tired of going through the motions of faith you want to make real progress in your life and not know where to start to grow is a book to help you grow spiritually and help others grow as well. We often see the gospel as a starting point of the Christian life rather than the main point of how to grow book by Darrell available@moodypublishers.org that Moody publishers.O RG back to moneywise on your dances in Tampa Florida is our next destination. Brenda we know you've been holding it. I may have to find some days you will read the text. Cool, I will. How can we help you with that move. I live In a multigenerational home and we are going to get them to watch the how and why not mortgage you're looking to give them part of the proceeds of the home you're selling in Tampa right okay yeah well as a couple you can give each child up to $30,000 a year without having to file a gift tax form just based on the annual exemption of 15 each 15 for you. 15 for your husband. Are you looking to do more than 30,000 you're actually getting something in return. Like an ER home that okay so basically they're buying the house. Yeah right now I it.

It still is a gift because you're not getting any title to that home so you're essentially giving them a gift.

They're going to turn around and take that gift and buy a home with it and they're going to allow you to live there. You have no interest that's in in that property that's coming back to you so it is a gift and then anything beyond 30,000 a year. You know you'd have to put against your annual lifetime gifting amount, which in 2020 was 11 1/2 million dollars. None that certainly could change in the future, but clearly right now it's in the number that's really high so I think you know as you move forward. That's probably the best way to go again, assuming you're not looking to take any interest in this. You want to give them a set amount of money and you know the first 30 would fall under the annual exemption and then the beyond that you have to fill out a gift. Gift tax form) okay, go ahead, you 8000 children well.

32.

Each child from you and your wife times. However, many kids, you're given the money to I think it okay yeah.

God bless you guys know the best in your move like things Brenda Leatherwood, husband and wife are both there and the chance at it, scooping you, Rob, just a minute sure you know what you talking great and almost always he does fundraiser re-in Coral Springs. What you question today.

I wrote you on your three grandchildren went about three quarters and I do have an equity I just want to make sure that they get it.

If something should happen to me.

I do not have a well and I was advised to do a try. That way that they could just come aboard and take over the Lord would should call me home and I was looking I was given 15 $1500 that it would cost from an attorney attorney you about right. I'm kind of looking at how much it would cost me to do to try again.

Yeah, yeah, the national average.

I believe my team tells me is about thousand $1500 so I think you're exactly right thing on your part of the country. South Florida is usually a little more expensive than most things.

So maybe on the higher end of that. The range of 1500 would be about right. I think the question to ask is whether or not you need that revocable trust or a simple will could do the trick commune. Obviously you can leave the home to the kids in your will would go through probate to be a part of the public record and and so forth. But it doesn't yellow it would still get to them. Assuming you had a valid will enforce now, obviously with the trust. There are some other benefits to consider. You avoid probate, and so you have the trust would make sure that that passes outside of probate you it's not a part of the public records you can keep things private and their little more costly. So again, I would just talk to that estate planning attorney and just see whether a will will do the trick, or whether there are some benefits you'd rather have with the trust. But if you're looking to to pick up a trust it would probably run you some around $1500.

Gregory, thank you very much quickly to Sandpoint, Idaho.

Scott what's on your mind sooner.

Thank you for taking my call. Happy to guide and I recently retired and I my only income is Social Security and what I have for my 401(k). I need to know I have like 150,000 left on my home.

Should I pay my home. Yeah, great question Scott. Congratulations on your retirement, what you have in your 401(k) about 815,800 850,000 okay and Re: how much you pulling out of that 401(k) to supplement your Social Security every month. I am pulling out about $2600 a month but that my RMD okay alright so that's what's required for you to be able to pull out corporate 4% is around 2700. So you're going to just under that threshold. Have you seen that portfolio continue to grow as you've been retired and pulling that to 2600 a month or is it declining. I have been doing it long enough to know okay all right very good when I'm comfortable that. Are you managing it yourself or you have somebody else may have somebody else managing okay very good and it is that what you actually need each month Scott to cover your bills. Is it a number less than 2600. No more okay so when you add purity's are going, purity, and my my $2600. Pretty much covered my I might be a little bit short but short okay and so if you ever need more money you pull it out of the 401(k) or you have an emergency reserve support from the reserve but I would probably end up shortly pulling it out of my 401(k) okay very good you know I think you could go either way mean that you know clearly if you want to be debt free.

You know I think that's a great things can reduce the overall amount you have need each month because the mortgage goes away, I would probably do it over a couple years. I wouldn't want you to add hundred and 50,000 in income and one tax year cassettes to post at least a portion of your taxable income up into a higher bracket or two, and so by spreading that out over a few years, especially since there's not a problem here meaning the Social Security plus the roughly 26 even if you bumped it up to $2700 a month. You're still only .4% a year out of that 815,000, which is a number that should be very doable if it's invested properly with a probably some modest allocation to stocks maybe 30%. The rest in a fixed income strategy where it's really you're not taking a lot of risk but generating enough in the way of the stock results plus the fixed income will come in in the portfolio. You should be able to make that up. And that includes the mortgage so you know you're on track to pay that off over how many years would you say you have left in the current payment plan like no I bought the house and another 29 years ago so I think obviously increasing that to say what if you pull down you know 25% of that hundred and 50,000 every year I work with your tax preparer to figure out the ideal number but I hear in your voice you'd like to be debt free. You'd like to have, the less the jury is required to fund your lifestyle every month but if long as you don't feel a real conviction to be out of debt immediately and you.

You've got the assets that are comfortable with you, waiting, I'd probably do it over the next four years just to not pay any more tax than is absolutely necessary, but that your tax preparer could run those numbers and where you come down. I'd certainly support Scott, thank you very much we we appreciate your phone call today and with that Rob where running close to being out of time. I wanted to ask you about something and that something we mentioned very sparingly, and that is the need for the occasional of financial help and donations that we have a special tab on our website for those who would like to help us continue with this a daily radio ministry right well that's right, and were so grateful for our callers. Those that invites us into their stories via other questions every day and were so grateful to be a part of your life and maybe listen by appointment.

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