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The Nuts and Bolts of Savings

MoneyWise / Rob West and Steve Moore
The Truth Network Radio
January 20, 2021 7:03 am

The Nuts and Bolts of Savings

MoneyWise / Rob West and Steve Moore

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January 20, 2021 7:03 am

With the tools and methods available today, saving can be relatively simple. Yet so many people have trouble even getting started, and still live paycheck to paycheck.  On the next MoneyWise Live, hosts Rob West and Steve Moore tell us how to break that cycle and start saving.  Then they’ll take your calls from across the country and answer your financial questions. It’s the nuts and bolts of saving on the next MoneyWise Live at 4pm Eastern/3pm Central on Moody Radio. 

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Go to the end. Most lawyer consider her ways and be wise about having an officer or ruler. She peers her bread in summer and gathers her food in the harvest. Proverbs 6 tells us it doesn't say so many people have trouble getting started and in the putting paycheck to paycheck. So today, kingdom advisors, Pres. Rob West tells us how to break that cycle is your calls and anything financial at 800-525-7000 800-525-7000 times more the nuts and bolts of saving that's nice right here moneywise line around. We talk about saving all the time so OY devotes an entire opening segment of this topic.

Well I think it's good to have something of a primer on saving once in a while we always have new listers tuning in.

Some folks might benefit from a refresher course. Yeah, probably. We lose listeners on a daily basis. Don't you think I said something on toward and that's that they're gone, you probably do cause that to happen.

Okay, just getting around by now everyone knows that saving is Ascension essentially not spending but you want to break that down into some nuts and bolts right right here. First off you have to understand that another way to define.

Saving is living on less than you weren't having money left over at the end of the month that you can then put to work for you, either in a savings account or an investment account like a retirement account and that's absolutely vital to your financial well-being. Once you do it consistently and prevent you from going into bed and opens up all kinds of possibilities. Okay, so where would you like to start well by gathering some data that you can't tell your money where to go if you don't know where it's going already so you have to track all of your spending for at least a month. Write down every penny you spend in a notebook or better yet, download the new moneywise zapping your app store to search for moneywise biblical finance. You can log your purchases. There will even download automatically. You'll probably be amazed to find out where your money is actually going discovering how much you actually spend on groceries and eating out is often a shock, that's for sure. Okay. So once you know where your money's going then what welding you decide where you wanted to go and that means drawing up a spending plan that covers all of your monthly obligations and assigns a set amount to each category or envelope where you have some control like groceries and entertainment again moneywise that can easily help you do that based on the tried-and-true envelope system. The ideas to set up a spending plan that leaves money left over at the end of the month so you can build up Yep you guessed it, an emergency fund for unplanned expenses like replacing appliance or car repairs or worsen job loss, which is been a reality in the past year for many Americans.

Eventually Steve you want to have that 3 to 6 months living expenses saved and there are a few tricks to help you get started, such as well now that you have that budget in place. And you know how much you should have left over at the end of the month.

Go ahead and put that amount into savings. This is some times called paying yourself first.

This will help you psychologically to stick to the budget. If you think the monies already gone.

It will help you resist the temptation to spend it how to set it up with your bank to automatically move the money from checking to savings.

At the beginning of every month. I got it out of sight out of mind good RA what is next. Well one trick that a lot of savvy sabers have picked up on is to pay as they go they use only cash checks or debit cards to pay for the regular expenses. No credit cards. This would be for things like food, clothing, utilities again. The moneywise that uses the envelope system to help you do that this is all great but I know that some folks might be thinking this isn't for me.

I never have money left over for saving well. There are things you can do, whether you have money left over or not. And they'll help you. Either way, by maximizing the margin you're looking for cannot make a list before going grocery shopping and stick to it. Never shop as entertainment that leads to impulse buying, i.e., stay away from the malls look for other ways to save lower that thermostat in winter raise it in the summer.

Pack a lunch instead of eating out, especially if you're still going into the office every day.

A bundle your trips to save on gases are just a few ideas you can, of course, Google a lot more you can also contact one of our moneywise coaches.

As you know, Steve, their well-trained, godly folks to help you set up a realistic spending plan with money left over every month and will encourage you along the way. You can find them by going to our website moneywise live.org just click on connect with the coach. I think right now there's about a two week wait to get with the coach but once you do the walk with you weekly through virtual means probably video chat and help you get everything set up. Amen. Great information. Thanks your calls next on anything financial open lines and 800-525-7000 jot it down. Give us a call 800-525-7000 money and life run on the same track on unfortunately sometimes it seems like your money is heading in a different direction from your goal, and never enough three keys to financial contentment.

Author Ron blue helps you to break down all your financial options to a basic floor and then shows you how to keep it all chugging along in the right direction on the same track never enough three keys to financial contentment available when you click the store button@moneywiselive.org 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 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 makes the world rejoice more is available and invest eventide.com invest eventide.com 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, how to grow as a book to help you grow spiritually help others grow as well. The gospel as a starting point of the Christian life rather than the main point of all how to grow book by Darrell – available@moodypublishers.org that Moody publishers.O 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 a living room sanctuary. So why not read the simplest way to change the world more Moody.com.

Do you know if you have enough money house. Do you know how much is enough if not Ron blue can help his book mastering your money a step-by-step plan for experiencing financial contentment. Learn how to save, invest, and give wisely create a long-term financial plan and how to get out of debt. Find it all in master your money by Ron blue available when you click the store button moneywise work great day in the sun is shining wherever you are. The SON is always shining and were blessed and honored to have you with us today as we talk about his principles biblical principles of managing your money. Our phone number again is 800-525-7000 five as of a couple of hours ago, we have a brand-new president does that mean to the country and frankly some people are probably wondering right now. What will that do to the stock market today or the remainder of the week. Any thoughts. Well, no one knows where the markets going in the short term. Of course you know whether that's a day a couple of days a week or even six months, but the bottom line is I think I'm most economists I'm talking to Steve think that were going to see healthy rise in GDP this year as we hopefully be continue the rebound out of the pandemic that there will supposed to positive gains for the overbroad stock market, the US federal debts going to continue to rise. It's gonna move beyond 100% of GDP were to continue on.

Essentially, a Cold War with China. There's obviously still a lot of polarization in this country but you know I think most folks believe just based on the sound state of the economy, despite some longer-term trends that were to need to address.

Namely, the debt, and others that were going to see well not talk to Bob doll recently who manages 1 billions is a good friend that loves the Lord and one of the most trusted voices on Wall Street. He feels like US real gross domestic product will increase at its fastest pace in 20 years now.

Despite that, and despite low inflation, he still only expecting modest gains in the market so that you although will have a new high, probably for the 12th consecutive year, which would be a big deal.

We will probably not have the types of games we saw last year, given the even the strong earnings rose that growth that will see so obviously these are your interesting times and I clearly we do have a new administration and will see what that brings. But I think all for all intents and purposes should be a pretty good year in the stock market to know Steve is not trying to predict where the markets going in the short term we always want to look at the long view. When it comes to investing well diversified invested for the right reasons with the right time horizon. Not trying to pick the winners and losers tops and bottoms so you know that's the biblical approach and I think that's the approach that wins okay thank you very much Rob right Leslie Iowa for the last time for the next couple of minutes.

Anyway, here's her phone number 800-525-7000 give us a call right now, onto Colorado. Cory, thank you for your patience. What's on your mind about the near future for long-term and well everybody's been talking about solar and I'd like to start buying silver. I started buying small amount but will thinking about buying now. Somewhere around 40% out my savings and Filbert Calypso hardhat yeah let me ask you Cory when used at 40% of your savings. One person is that of your total investable assets.

Let it be about 75% okay yeah you know I'm just not a big fan of that approach.

I realize there's a lot of folks out there that say given, where we are in the economic cycle. Given the incredible rise over the last decade. In particular, and then perhaps even a bit more than that in the US national debt. I given some of the other factors going on that you know were due for a major correction or worse and therefore the hard assets the precious metals will perform very well.

You know give you some stability in the midst of uncertainty you know, obviously there hedge against a falling dollar and a hedge against inflation. Despite all of that, you know, if you just look at silver units 25 1/2 dollars an ounce today couple weeks ago was 2750 back in the summer. It was near 30 so it's certainly going down that you could argue your buying it at a discount. I just don't think given the volatility of the precious metals. The fact that they don't have the long-term growth trends as as well is a well diversified portfolio. Does that there okay to own and I prefer to do it and in a stock forming ETF rather than taking physical possession but I'm just a fan of not putting more than 5% of my money there just because when I look at everything. Historically, at least, it just says that it's not as good investment in terms of performance and you're gonna have more volatility. You also have with the physical possession the markup on the buying and selling using a dealer you gotta store it and secure it in insurance and all of those things that you may say Rob I hear you and this is just the direction I feel like I need to go work. I have other reasons and you certainly as the spirit of God's money, you gotta make those decisions. It's just for me based on everything I've seen in my career in the studies I've done. I just don't like this in terms of overweight at this level in the precious metals for performance. Rob, would you feel the same way about putting 75% of what you have to invest in any one thing and even if you invested in one great stock is not much diversification going well right in your ear violating Ecclesiastes when you do that which is this principle of diversification. You know everything that that good that Wall Street has to offer, has its roots in biblical truth, including the principle of diversification and so yeah overweighting in your own company stock, or precious metals or the latest highflying tech stock I think is not going to pay off in the long run. Already, Lake Worth, Texas Cory, thank you for that call Lake Worth, Florida. Rather able to welcome to moneywise. Life things are you doing, not that I'm making 80 and I'm going back and whatever.

And all my money on what I stock with continuity. Should I stay with the stock of theoretical and thought anything I had the wrong one. He and Alan kind of skeptical I could do that on yeah well I appreciate the question in I'm not a big thing of annuities with a few exceptions, they tend to be expensive, complicated, and you know you can often accomplish something similar without locking up your money and without the fees and commissions that goes along with it.

And obviously if you want to transfer the risk that you're taking by investing yourself or hiring somebody to do that for you and you want to transfer that risk to an insurance company.

Well, an annuity will certainly accomplish that.

But you know if you're comfortable having a properly diversified investment portfolio that's consistent with your goals and objectives. I like the fact that you can see the long-term performance you're not paying the same cost and you still have access to your money in terms of what the right investment allocation is for you is good to be largely dependent upon your age as you said your nearly 80 and the income you're trying to generate or are needing to generate from this portfolio and then really the ultimate purposes of money that you just kind of a parked on the side in case you needed because you have major medical expenses as a money you're planning to give away or pass on to the next generation as an inheritance, but let's talk about what it is. So first of all, if you don't mind me asking how much do you have invested and and then tell me that whether you're living on any portion of it with my back about hundred 25 now and mostly hating on the nature. I do have a little bit emergency around and maybe around 40,003) working so I have a part-time take too much from my from my from the IRA to know that I like the minimum required okay very good and so you said you still working you've got to about 40,000 in emergency savings. In addition to the roughly 325,000 in stocks. What you spending on a monthly basis. If you total all of your expenses each month.

Give me a rough number on what we been more than we should.

I don't know, probably around 3900 around their okay but I'd love for you to take the time a to actually begin to track that you whether or not you get into a system where you're using the envelope system and tracking the flow of money every month from here on out you at least need to settle into a budget that begins with what you're actually spending so you know what that monthly need is and it gives you a way to evaluate whether you want to make any changes you actually volunteered that maybe were spending too much, so you may identify some areas where you didn't realize you were spending what you are and you want to cut back but let's say it's 4000.

Let's say you're missing a few things you know six months of that would be 24,000 see you almost have a years worth of savings there in emergency reserves which is great because that way you wouldn't have to rely on any of the stocks.

If you needed to supplement now.

Typically what we would say is you use the rule of 100 because people are living longer. That rule has moved to 110, but you take 110 you subtract your age and that's the percent of your portfolio.

You would typically have in stocks so 110-80 means you have 30% of your portfolio in stocks and then you'd have the balance 70% in some sort of fixed income now because you're continuing to work and that you don't need the money right now you know you could get a little bit more aggressive but I probably wouldn't have more than 40% because of you stop working for any reason you don't want to have to sell stocks at a loss.

If you're now going to have to start taking more than that required minimum distribution so I probably talk to your investment professional about what it would look like to move to a more conservative portfolio were 12 years into a bull market and so I this is probably a good time for you to get a little bit more conservative.

So in the fair market that will come eventually.

You don't see a significant fall this moneywise while life will be right back after this. You have a strategy for your finance your career even your retirement strategy for your getting Christian foundation. Create your family maximize your resources to learn how to moneywise.org the financial wealth you leave behind could be the best thing that ever happened to your loved ones or the worst in it splitting hairs, giving your money and things to your children without ruining their lives.

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Click the start button moneywise.org, click insert everything to instilling fear, especially with a quick way here and we cannot make nothing to do what so ever with God is plain weird markings on course. Everyone in Arkansas. One thing about having team unity. Just as I don't know any way to tell you the entire one other thing where you did to seize the night Bible study 9:30 PM central no problem dawdling that is the moment you might want to check us out online moneywise.

Why.org that's her primary website will find lots of great information. Things you can download for free past radio programs on the audio and also actual listings of radio archives how to find a certified kingdom advisor or SEK a in your area and also how to connect with the budget coach all of that and much more. When you visit us online@moneywiselive.org West Michigan Lori.

We appreciate you being there today. How can we help you share with you and your program. Very brief regarding proper name. The best way to pay for renovations on both property which was inherited and our private private grant strain clear, we don't have any other that we do have an emergency fund and that this rental property as part of my long-term retirement plan and that will be setting up an LLC on the rental needs a lot of renovation and were wondering the best way to go about financing that if we should take home equity loan from our home or from the value of that property. There is another way that's recommended. Yes, it's a great question so you said those homes you own free and clear, is that right and in terms of the renovations you're planning to do to the rental property specifically what to expect. That will cost you not have an exact figure that were talking click basically got to chatting it out while drywall has been does a lot of the work so that can help you now instead of having it now contracted out could be 100,000 or more. I would say that 680 very good.

Well, the thing to consider is obviously taking out either of a mortgage on your current property or home equity loan, which I would proceed to do the line of credit because we can lock in the low interest rate is on your primary residence, you can get a better interest rate better terms. There's obviously a lot more requirements on a rental property in terms of what you need to qualify although given that you wanted free and clear. You shouldn't have much trip but your generally get to see higher interest rates than for her primary home. If you were to take it against the rental property. However, if you're looking at this as a business and I think that's what it is you formed an LLC and a separate your personal financial affairs from the business you're going to cash flow the debt service out of the business meeting year to rent it out eventually.

And you want to rent it out for enough to cover the repayment of the debt and put a little aside for maintenance cover the taxes and utilities develop marketing unit with the need to replace the tenant and you want to keep all of that separate from your financial I mean, I kind of like that keeps everything separate and as you have, over time the profits or you have income being thrown off, over and above all the expenses including the debts purpose then you can pay yourself out of that and recognize some of that income. But if you're just looking for the most cost-effective way to do it.

Depending on your reserves that you have and depending upon you know what your margin is above your expenses to cover the service and whether or not you feel like it's can put you your personal financial affairs and any kind of jeopardy. Clearly, the inexpensive way to do against her primary residence, but I would probably compare the rates and if you're not seeing a big difference. Just the assets that you have.

I go ahead and keep everything separate put it against the rental property and just really focusing on that business and running your personal financial affairs completely separate stimuli. Let's talk tomorrow.

Thank you Lori Ryan were heading in your life when it comes to investing guidance you want advice, grounded in God's work.

That's the approach offered by sound mind investing. SMI has helped tens of thousands of Christians acquire investing wisdom and confidence. Regardless of your investing experience or how much you have to invest can learn to be a wise and faithful steward in the area of investing a short video webinar on profit and peace of mind is available now sound mind investing.org Christian healthcare ministries enabled believers to meet their healthcare cost affordably, biblically and compassionately is not insurance but the voluntary cost-sharing ministry based on the biblical example of Christians sharing each other's needs and members are defined under the loft not having health insurance healthcare ministries might be your health cost solution call 800-791-6225 or visit CH ministries.org.

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You can pray for Moody radio. Be faithful to the word pray that we would think simple gospel would be drawn right. Three important prayer request theory about showing in our mission at making right now part of our advice questions about planning for retirement. Long-term care insurance. I don't know where to start. It sounds like you need to moneywise help you find me ask you questions with helpful articles and moneywise sounds great okay searching for moneywise moneywise son John Scott Joe Biden has taken the helm as the 46th President of the United States used his inaugural address towards people to come together by declared that democracy is prevailed as a took the oath of the US capital that had been battered by an insurrectionist siege just two weeks earlier, was to inoculate Americans against the ground of our sending roadblock a number of states reporting. They are running out of vaccine.

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The NASDAQ was up 260 Mrs. SRN use those guys and why they helm on the radio while he's Rob Moran were here to help you work through your money, your finances, as the Bible gives us principles to do so, and you'd be fascinated if you're new to this Rob over what 2300 verses in the Bible that pertain to money and finance and how to manage it and use it. Give it deposited invested in all restaurant, all the rest. Yeah the back story on that is the former host of this program. Our Dayton actually end amends Bible study took that project on over several months.

They literally went through the Bible. They cut out with scissor every passage that dealt with money, possessions, net worth assets. They stacked them up by category all over the conference room table and 2300+ verses later. They had their number.

Never cut up the Bible with scissors. I understand where they were going with that, but I'm afraid lightning might strike or something like that. But thankfully it did not and yelling not over 2300 verses and is very very applicable today. Again, our phone number 800-525-7000 and is in Creech Illinois secrete my pronouncing it correctly, it Michael, you bet sir.

What's on your mind okay to like move. But marketing you go home go there so how bad of an idea were able to qualify for his home on 30 year note waited more than 20% down and we purchase this home and then we sell our home. Our current home with the money towards the principal's tax why I know it shouldn't be a problem at all, as you've lived in your current home to that of the last five years. If you're married, you'll have half $1 million worth of gains, not just the selling price. The actual profit you take out of the home you can have half $1 million and pay no capital gains on that and then you can absolutely take that and pay off in full. If you can that mortgage on the second property. You just have to recognize that potentially, and I don't know the rest of your financial story, but pending on how much you have in the way reserves and how much pressure that new mortgage with 80% of the home's value is a new mortgage you the pressure that that payment is put on the family budget and what if your primary no current home doesn't sell as quickly as you planned and I just don't want you to get into trouble, but you say no. We got it covered. No problem.

You know, we thought through that and even if it took six months or year.

Lord willing, it won't know we have no issue then yeah, you could certainly proceed with that and then like you say you take the profit the proceeds out of this current home that you're selling and just wipe out that mortgage and you would then be free and clear. At that point, your okay now right to sell a rental property to pay off another rental property. So you're clear. Having a mortgage that well you would pay capital gains on the profits.

Units of most folks, that's can be 15%, but it could be as high as 20% of its long-term capital gain depending on your filing status in your taxable income. But you would have a capital gain that you would pay on the profit which again is that you have to calculate exactly what that is the selling price minus the original purchase by price minus the cost of selling it, minus any fixed improvements and stay with the property you complete your gain in the you'd pay capital gains against that and then whatever is left over after the taxes are paid at that point you would just take that money and use it to pay off the other rental property that is what the money that you want property. You cannot just will. I know you can roll it into another rental property that you would purchase a similar property and deferred again but I don't believe and that's good question. Probably want to check with your tax preparer on that with a 1031 exchange because you already own the property you're not acquiring a new rental property. Is that right that stated the only question I have, so I would talk to a tax preparer asked that question whether you could still roll that into the other rental property as opposed to going out and acquiring a new property other could be a way that you could essentially kick the can down the road on that paying net capital gain by rolling it then, but given that you already own, and I just want to make sure that's the case I'm not entirely sure right now so I would check with a tax professional and that specifically thank you very much Tina were heading in your direction. Please stay will listen Ryan, I think we lost you friend if you're still out there want to ask Rob a question about automobiles. Feel free to give us a call back or anyone else.

800-525-7000 800-525-7000 one more before the break, Lakeland, Florida.

Enjoy what your housing situation there. How can we help you on this report. Interest rates right now are really low of and everything that everybody's been telling your first year put as much money as you can down the principal on Pagano cut down on your mortgage. I was just wondering what it be smart to take that money would put down on the principal and put it into another retirement with an interest rate that is collecting an interest rate higher than what would be on our house. So there you would be making money instead of just paying down the principal exactly yes to give me a few numbers here. Joe love this question and I think I understand where you're going with it but would you pay for the house 184 okay and what is your mortgage down it would be at thousand eight, how much should I DO on the mortgage. One 79 x 9 okay alright so you essentially put 10% down. Is that right lesson yet we put 3% down 3% on yeah okay zero 179 and how much do you currently have going into retirement accounts are souring.

The buyer okay so 10% of all my paychecks going to retirement with the department, but I was wondering if it would be smart to open up another retirement… Open up another retirement but put that money toward the request.

Yeah, now it makes makes a lot of sense of what we have left over what your margin every month after the bills are paid, including the 10% is currently going into your retirement account. How much do you have left over that you could either put toward additional long-term savings or against the principal. I wish I knew that answer went well here's the thing you know I love the fact you've already got 10% going into retirement. I would love for you to have a spending plan so you know exactly what you have coming in and going out and you can make real decisions about areas you need to cut back to free up more marches your first priority is 3 to 6 months.

Emergency funds Mary have that I didn't ask about it if you don't I take every bit of that margin on a monthly basis and put it toward that if you have credit cards go after that. Next, then I do like you going after the house just until he gets below 20% loan to value, to get rid of the PMI, but at that point, I put that into additional long-term savings will be right. And if that is robbing you of freedom and peace of mind. Christian credit counselors can help where a nationwide nonprofit organization has helped over 3000 individuals in the last 27 years get out of that 80% faster while doing 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. Many people adopt an attitude toward marriage and finances that it will all work out somehow. But sadly, it often doesn't financial woes can devastate a marriage but there is a better way. God's way, money and marriage God's way by Howard Dayton will help you discover God's approach to growing your finances strengthening your relationship with your mate and cultivating godly joy, money, and marriage God's way and moneywise I.org is here to help me understand God's purpose for your life to the eyes of a layman.

It's not enough to have good pathway to failure is paved with good intentions. There's no question. Share your fate has to be your priority has to be intentional or you won't do it in your mind more than your job and your friends kids or your grandkids using every moment to move forward with you at that very moment closer to God has to be your overriding priority or you'll miss most the opportunities God brings you, which are almost constant. This the one task you don't want to fail because it's the only task Jesus mandated for you and every other Christian and making it your priority range. God's blessings on everything. Your job is revival outside the walls moving everyone and everything else 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 and 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 questions in your life. Cultural Christianity is a huge mission field in desperate need of missionaries get your copy of the unsaved christian@publishers.com you. 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 to grow is a book to help you grow spiritually help others grow as well to the gospel as a starting point of the Christian life rather than the main point of how to grow book by Darrell – available publishers.org that's publishers.O RG verse about generosity of all things, and if I give all my possessions to feed the poor and if I deliver my body to be burned but do not have love, it profits me nothing. First Corinthians 13 three maybe someday we can come back and camp out on that for us a little bit Rob and the pick it apart and see what it really says to us let's go to Florida. Our stay in Florida hi Tina, but you question for Rob West.

I call this my employer pay 13% down toys that you mutual fund account from contractor combined everything that might yeah I do like combining those 401(k)s Tina that you separated from and you do that in the new IRA and individual retirement account, you have the benefit of that is a lot of times when you separate from the company's expenses are slightly higher, obviously inside the 401(k) you have limited investment options, but given that there's two of them.

You gotta understand what those investment options are and you gotta do the researcher pay somebody to do it to figure out what should your money be invested in them than the one and then you have to do it for the other. Not to mention picking the unit of the funds that you're in inside the TSP when you get it in one place some economies of scale, just in terms of the amount of oversight, less paperwork, less monitoring of the accounts, not to mention if you hire somebody to manage it for you. You're opting to get some breakpoints there and you can make sure it's a little easier to make sure you don't have unnecessary investment duplication or you know that you're not managing it properly. From a diversification standpoint when it's all in one place so I think that's a good option for you side, open an IRA Charles Schwab or Vanguard, or if you want to do some that's more in the fin tech space with a great smart phone app you can use a betterment that IRA once it's open. You then get the rollover paperwork from each of the plan administrators with those 401(k)s. You fill it out.

They'd sent a track check to your new custodian where that IRA is all the money would be consolidated in one place and then you either have to deploy an investment strategy yourself or hire an investment professional to do that for you but it will things make things a bit simpler and I think that's a great approach. Tina, thank you very much we appreciate that call today Buffalo Grove, Illinois, and Bridget. We appreciate US holding on the line. We know you been patient today.

Thanks, and what's on your mind. How can we help you succeed and make sure that you can't properly and I was wondering my what I'd like to do go from a 30 year fixed 15 year do you mind me asking how much you got 40,000 okay and do you have the emergency savings 12 month mark for the and we have hundred 80 left on our home delivered retirement property that paid off. So I get to know you. Absolutely what's the home worth okay and tell me about your budget right now D after the mortgage is paid in all the bills are covered. Do you have anything left over. Yes, you have enough to put in money for your okay excellent. So basically what I'm hearing is you take the 40,000 you put it against the house and you get a new 15 year mortgage of 440. Is that right or or make sure that we can think about refinancing using that for the financing and just to get used to payment which will probably but I would code it would probably be about 305, it welded the cost of refinancing should be more than .2%. So you're probably talking you know $3500. Maybe some like that so yeah you could make sure that you're not increasing the value for sure, but you should have no 35,000 or more that you could put against it. Bring the total mortgage down, which as you moved to the 15 years should still go down to bed. I suspect you'll even be able to drop that interest rate a bit. So between the reduction interest rate mortgage at least 35,000 less. Even though you're going for a 30 year to 15 year, you're probably going to either be breakeven or a little bit less. I like that plan. Given that your fully funding your retirement. You got this rental property that's debt-free you got at least six months emergency savings you're doing a lot right and this is gonna get you even quicker moving toward having that primary residence set free and clear so I think this is absolutely a blessing as you've Artie acknowledged infusing in this way will really think out of the Lord yeah I don't think we could run through the list you have any real college bound children or anything like that.

Yeah. Is that funded no okay so that would be another option is to go and hang on to that money. Recognizing this, but as you put it against the house, it's can become very ill liquid and so if you you know I think you and your husband need to begin praying through how much do you want to be able to cover of your children's college going communicate that to them early, whatever that number is, so they know and what they have to work with and start looking at the cost of attendance of each of the schools there interested in you know I think you could drop that into a 529 plan. Given some of these other things are on the right track.

Or maybe split it so maybe you put just enough in it to make the budget balance on the new 15 year mortgage and then take the rest of it and go ahead and suck out a way to really see that that college fund. I think that potentially could be one other option. Bridget would like to call today.

Thank you very much. Columbus, Mississippi, Marcus, just a little bit of time. How can we help all share.

I got CD that will be freed up right and so will be especially make it once was your age. Marcus, 42, 42, March I and you have retirement savings that you're contributing to outside of this is roughly 400,000 know so I got all walked off MY job working like… Molly and I think I got you self-employed notes now retired military dog. My okay okay all right very good and does not cover all your expenses. You okay very good so this is really over and above so I think the thing to do is to recommend his lot of money that you've worked hard and probably for a long time to save up and just a can to keep this urn and you know half a percent or 1 to 2% in a CD. It is not the best use of this money I would get an investment professional to really sit down with you. Make a plan. Look at what you're trying to accomplish now and in the future. What the Lord has for in this next season of life and deploy an investment strategy that's consistent not with anybody else's objectives are not trying to beat the market or beat your brother-in-law's returns, but trying to only invest in a way that meets your objective, your God-given object that can be as conservative or as aggressive as you want.

I suspect, given where you're currently in, you got the money is probably on the fairly conservative and but the goal would be maybe 45% a year instead of the 1 to 2 so by taking a little bit more risk you can get to know a good bit more in the way of return and do it in such a way that if you needed to tap the money for unexpected expenses or major medical event wouldn't even need to touch the stock portion of it which would probably be a smaller percentage you could do it. Based on the more stable portion of the portfolio so you wouldn't have to worry about whether the stock market was up or down at any given time, somewhere I go without. I'd had to our website moneywise.org click find a CK at interview two or three certified kingdom advisors in your area and talk about the best investment strategy for you the person you feel most comfortable with. I would deploy them to begin investing Marcus God bless you sir, thank you very much for calling today. Algonquin, Illinois, Frank, your final call or just a tiny bit of time even less than that. How can we help you, waiting for my boys so and I like to roll that into a 529 you wouldn't be able to roll it in.

You'd have to redeem those bonds and then you could make a contribution to a 529 which I think it would be a great option.

You know, doubly bonds right now are no pay and .1% so you not get the whole lot there, but I got go and redeem those and then make a contribution to that 529 and then the growth on the investment you choose to moving forward between now and when you'd start taking it out for qualified educational expenses would be tax-free so you could enjoy all of those gains moving forward, and you'll do a lot better over a long period of time not knowing any month or two but you'll do a lot better over time in the stock market through 529.

A couple websites to give you as we wrap up your own time. Number one the best way to evaluate the right 529 for you is a website called saving for college.com you'll answer a number of questions know make a recommendation for you and then the place you can redeem those electronic savings bonds is a treasury direct.gov that's the government's website for the savings bonds or you commit to paper bonds you could redeem them at most banks or financial institutions Frank God bless your brother we appreciate that and hope that information helps you. Thanks very very much. Rob West always a pleasure sure. Let's come back tomorrow and do it again all right now look forward to moneywise I is a partnership between Moody radio and moneywise mediate my thanks to our technical crew today. Amy, Deb, Aaron, and of course none other than Mr. Jim Henry arrived last time Steve or I will pleasure being with you today. Tell a friend if you enjoy the program and then join us again next time for a brand-new edition moneywise


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