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February 11, 2021 7:03 am
I was about Hastings VP here at Moody radio and we have a unique sponsor for this podcast that united Faith mortgage the faith focused mortgage team with a very specific advantage that can save families money. Here are two things you need to know number one united Faith mortgage was started by a dad and his son and his wife and they've grown into a team helping families all across the US and number two, they have unique advantage. Their company is an arm of a bigger company, which is a direct lender meaning there is no middleman. Their company uses its own money and makes its own lending decisions within its own walls. Again, no middleman, and often this allows them to get you a better rate on a new home purchase, refinance, or cash out refinance which could save you money over a lifetime. Check out the faith and family mortgage firstname.lastname@example.org and that if he is a DBA of United mortgage Corp. 25 Millville Park Rd., Millville, NY license mortgage banker for all licensing information, go to an MLS consumer access.org corporate and MLS number 1330. Equal housing lender not licensed in Alaska, Hawaii, Georgia, Massachusetts, North Dakota, South Dakota and Utah. And then he said me of the Lord not be angry but let me speak just once more. What if only 10 can be found there, he answered, for the sake of 10, I will not destroy that of course is Abraham negotiating with God about the destruction of Sodom in Genesis 18. What lessons might fifth passage holds for us today.
First Hose Dr., West talks with economists of Jerry Bowyer to find out that will take your calls at 800-525-7000 calls and anything financial 800-525-7000 times more.
Here's a hint it's about God, not politics, that's nice right here on moneywise live Rob as we often say Jerry Bowyer is our favorite economist.
He's also the chief economist at Biden financial and a regular on the FOXBusiness channel well and he definitely is her favorite. I would say in large part due to his biblical worldview and his ability unique ability to make the complex, easy to understand, Jerry. Great to have you back on the program first time in the new year.
Yes, and a happy new year to all of you now when you say I'm your favorite economist, I got ask precisely how many economist.
No doubt let's move right along as the other regular guest on the show we asked the questions around here but are it will diving in before we talk about politics in a very generic and nonpartisan way. I'll say.
And since you are an economist, our favorite. In fact, I love you give us your impression Jerry of the economy today what we might experience in the months ahead, and I know you're not a prognosticator, so I'm asking at a high level here. Yeah well I the economy today.
I think is expanding fairly rapidly so the economy right now seems to be in a state of recovery and I look at just like recent economic data that come out from the government but also surveys in real time with people or managing businesses. But it's really kind of on even there are parts of the economy that are really booming manufacturing is coming back strong. For example, there are other parts of the economy that are weighed down by the continuing on and off shutdowns so if you're someone who owns a nail salon place hair salon. I guess I don't know what they call the place where you're doing people's nails. Many baddies are haircuts, you're in a tougher spot say that somebody who's knowledge worker who can work from home so we have an unevenness, but generally the big ticket items are coming back and coming back pretty strong and they're likely to continue to do so that you vaccines are pretty helpful. I will you know we never thought of vaccines is a major economic driver, but in this particular odd season. Vaccines are one of our major macro economic drivers yeah well that's helpful Jerry and encouraging. I know it should be for many folks as they think about. Perhaps what the future holds. In light of still the uncertainties that exist around the pandemic.
Jerry we said today were to talk about politics and I like to get into that a bit. Generally speaking, though perhaps we start here that does politics really play much of a role in economics well only when it changes policy so a lot of the stuff that's political things like no fights about not prep but political personalities are political loyalty. You know votes on bowel impeachment or not impeachment. A lot of this stuff has an element of show to it right, or political rivalry rivalry between candidates. What really counts for the economy is what people actually do so.
If you run as a conservative, but you govern centerleft then doesn't matter what you ran as it matters how you governed. If you if you run is a liberal but govern center-right like a Bill Clinton yeah but you talk like a liberal but you cut capital gains taxes than that's the thing that really has an impact on the economy is that so surprising for Christians.
What really matters in terms of your impact on the world is not the way you talk, but the things you actually do some politics to the degree that it influences actual economic policy is the important part yeah makes sense Jerry so how then should we as believers view politics well politics matter because the God. Everything matters about our lives, but they probably matter a lot less than we act like they do, especially around election seasons when we get kinda caught up in the hype and maybe lose a little focus on the kingdom Jerry Bowyer with us today.
It's about God, not politics is a brand-new year, so this is our first opportunity to pick Jerry's brain as it were about these kinds of things and it's a real blessing and an honor to have them with us today and you as well. We have deposit will be right back after this weekend with us today at your host is Rob last time Steve Moore are just the chief economist at Biden financial. His name is Jerry Bowyer. It's always a real pleasure and eye-opening time whenever we meet with Jerry. He tells us stuff we really don't know on their own right, do you, God, politics and economics and where they all meet Jerry just before the break you were saying as believers certainly politics matters, but probably a lot less than we act like it does not look for you to flip that coin and tell us how Christian should not view politics. Well, I really like the phrase from Psalm 146 put no trust in princes our and the sons of men in whom there is no salvation when his breath the parts he returns to the earth on that very day his plans, perish put no trust in princes is a phrase we throw around a lot here your research and in the Bowyer household because there is a very strong tendency for humans to start to transfer the trust that we have in God or the Nero the resistance we have to the devil and take that and bring it down to and create a political God in a political devil.
That's because week. I don't. I can't see God so if I'm that's why idolatry is such a temptation.
I can't see God. While I can see a president I can see a king I can see in Emperor and they become like God's to us and I think the Christians are as susceptible to that as everybody else, but we have the word of God, which then corrects us. So I think we cannot let our politics absorb our religion. We can't let our politics absorb our Christianity are our faith transforms our politics, not the other way around. The was such a key point and it really leads right into how we interact with one another what you have for us. With regard to how we should treat others who may differ with this politically will I think there's actually a lot of material in the New Testament on this and were not used to thinking of it as political. So we just think of it as the way we treat others, but I think the sermon on the Mount is extremely important here. When Jesus is talking about. If someone slaps you on the face that an insult return to him of the other the other cheek also.
Or when someone compels you to carry a pack which under Roman law, their political enemies. The Roman soldiers were able to do this is discussed politics here and when Jesus says if you say rock you're in danger of the council political entity, but if you say, thou fool, you're in danger of Gahanna and I think this is not just about personal relationship certainly is about personal relationships, but when Jesus gets up on that mountain to get the sermon on the Mount people were mostly whipped up about personal relationship people were mostly whipped up about politics, I think he was telling them among other things, not just how to act in church, but how to deal with your political enemies. In this case, the Romans, and he gives a warning which is about how you talk to and about people and he says that if you don't do this, you're in danger of Gahanna and Gahanna means hell.
But Gahanna also meant that garbage pit outside the temple off the cliff and in fact the first century Israelites. They had toxic rhetoric towards one another. You can read it and Josephus, it got worse and worse and worse and it ended up destroying the society and literally they were cast into get Gahanna meeting, the parties were thrown down into the burning pit. That's a symbol for hell. So I think after we treated each other differ with a people different from us politically the same way we should treat anybody else with love and with verbal restraint and with respect.
Jerry we know that the heart of the king is in the hand of the Lord and so often we we look at that verse and others that are like it, realizing or believing that that God's in control who's ever president who's ever king whose ever Emperor is because God wanted that person there.
So how do we have respect for leaders, but that not let that respect turn into reverence because we love that person or dislike or hate because we think that person doesn't love God and we don't want to be part of that side either.
Yeah I think that's a that's a good question. It's a tough one and I think that what we want the things we don't do is invoke Providence selectively, so we don't say when my guy is there, then that means he's God's choice.
But when the other is there, we kinda don't talk about God's choice. God is providentially organizing history for the good of his church and for the good of his kingdom. Every presidential election and every outcome is from that standpoint, even if painful and contrary to your desires and expression of the love of God.
Part of his Providence.
Sometimes it's love encouraging a blessing and sometimes it's love disciplining, but there's still both the love of God, good. Jerry Jerry every time there's a change in administration in Washington.
There's one group that's delighted that another group thinks were doomed. What you say to those folks.
No matter where they fall yeah and there's been a lot of doomsaying from you know sort of crowd that we move in.
I think few years ago at Pastor Andy's. Andy Stanley did a kind of a video appeal to the parents hate calm down or scaring the children I think is what it literally said I think we have really placed too much doom around electoral outcomes. God judges he rises up and pulls down, but we have this wonderful passage in Genesis 18, where God lets us into the process of how it's decided.
Abraham is a member of his court. He's a counselor. So Abraham and God and reason together about whether Sodom and Gomorrah will be destroyed and there is not one single syllable uttered in that conversation about whether Sodom had a good president or a bad president or this case a good king or a bad king that bad kings I'm that's a given. But that's not what the conversation was about when Abraham was negotiating with God. It wasn't about the leaders it was and was about the people in general.
It was about the people of God.
How many righteous does it take to save the city and they come down to 10. If there's 10 righteous. There's hope, no matter how bad the kings are because these were very bad kings, no matter how bad the society is because this was a very bad society. If there's 10 righteous.
There's hope, and I think that's a little nod to the Jewish practice of a minion that's 10. That's the basis of the synagogue if there's enough people who are righteous that there is an institutional voice that can say don't do this anymore move turn repent move in this direction as long as there's not there's hope it's not losing an election.
I don't know what the future is for America and maybe we will be wiped out, but we won't be wiped out because we choose the wrong president will be wiped out because God's church chooses idols rather than him.
So good just about a minute left.
What is your charge or challenge to believers today, regardless of their political persuasion. My charge is to get re-centered on God to us as a nation we been obsessing about Donald Trump.
Half the nation's been obsessing you know Bob in in this this way, that is, you know over me overly respectful or putting too much trust. The other half of the nation has been obsessing in terms of hatred and dislike. No president deserves that much emotional attention. There's only one leader who deserves our obsession, and that's Jesus, and we should be obsessed with Jesus and engaged in politics and I think what happened is we got obsessed with politics and somewhat engage with this Jesus because maybe he can help us with our political goals. Perhaps Jerry and that's that's really good. Perhaps we should finish today with the words of the apostle Peter from first Peter 217 honor all men love the brotherhood, fear God and honor the king and if we do that, I think that puts everything in the proper perspective. Jerry great to have you my friend, always a pleasure. God bless you, Jerry Bowyer, chief economist at Leiden financial has been with us today.
You can read his email@example.com, Townhall.com your calls next at 800 525 €7000 listening to moneywise live from the west coast on more calls today, calls, comments, questions, conundrums at 800-525-7000.
Anything you might be wondering about financially speaking. 800-525-7000 Rob with your permission, shall we just jump right in. That sounds great.
Steve stood up to Chicagoland and the Jamie nice to have you there. How can we help Mike yesterday so question my husband and I picked our retirement amount. You know how much we thought we would need to be able to retire and we hit it and we kind of went flying right past it, which was a beautiful blessing. And so I and it kinda becomes a burden at some point where you you know it. So it's not kinda taken. I sort of feel like we should move it into even sure where but something last so we just know that my husband working at our year so there's gonna be more money coming in were not retiring, but I think we should take that amount that we are goal amount and kind of move it into something safer and he feels like we should just keep it out there roaming and that is good stewardship. I can feel a good stewardship is that they think you God put this aside and then keep moving on with life wondering what your thoughts are that yeah I love this question Jamie because there's a couple elements going on here. One is the appropriate level of risk to take with your goal which you've achieved as you said and how do you then invest that moving forward to be a good steward to put God's money to work in a way that's appropriate, but without taking unnecessary risk, because in fact you've Artie met your objective in the second question is what is the plan beyond your financial finish line, which I agree.
You said perhaps there's other savings goals that now that this one is fully funded, you could begin to tackle but I was like to say what other giving opportunities are there as well because your we establish a finish line because we don't want to accumulate just for accumulation sake, we realize that we are entrusted with God's money and that we should use it to provide.
We should live with contentment.
He said in first Timothy we should enjoy what the living God has entrusted to us, but we also realize the part of God's intention is for us to be a pipeline into his activities were blessed to be a blessing to others and to use that for God's purposes. So part of, I think establishing that finish line, says the Lord, when we meet this goal, or when were on track to meet this goal. We're going to look for ways that we can take what you've given to us and use it to help meet the needs of others. So let's talk about both sides of that in terms of the investment strategy. I would agree with you, you know, we don't want to just quote unquote beat the market for the sake of doing that we don't have to take a level of risk that's on necessary given what our current financial condition is and once you achieve your goal because you had a windfall.
You sold the business or you. Whatever the reason is I think it's an opportunity then to still be a good steward and seek a return on God's money, but to dial back the risk level because you just frankly don't have to take that level of risk. It's all about your goals and objectives given to you by the Lord as opposed to trying to match some index or achieve some return. Just because you know that's what's talked about on the news or something like that. So I think thinking and praying through that to say it isn't a time to dial that back and what is that look like, perhaps, instead of trying to achieve a seven or 8% return each year you're only trying to achieve.
Four. Five. Which also means that if you get a more conservative position than if the market were to head down for a period of time we get into a bear market because there's a legitimate recession not brought on by a single event like a pandemic, but something that could last two or three years. You wouldn't see anywhere near the declines with God's money in that kind of portfolio even though you could still have a growth component to it and you just leave that alone and wait for it to recover but in the second side of this is the opportunity you and your husband now have to begin praying through this to say Lord given where you have us today financially. What do you have for us to do and how should we be thinking about the funds beyond this goal that we feel like we've established through prayer and lots of conversation and should we be saving for other goals or is there an opportunity to increase her giving so lots of ideas there.
Jimmy tell me your thoughts and I had one of his gifts in the kingdom is amphibian earner and a giver.
So the fact that he likes to stay at that, you know, it just kinda keep the money growing so we definitely are talking about that and we are praying about the amazing blessing you know and it is an interesting place to be you and me just one piece of that did mean to cut you off, but this hold that thought.
But there are some people to just have the gift of making money and what's great is that you don't automatically have to assume that you have to exit the working world or exit the market and go to work in full-time vocational ministry because perhaps for some people. Many people staying right there in the marketplace, whether that's through passive investments or through enterprise can be the biggest catalyst for kingdom activity and kingdom funding work of anyone you know there's this idea that we talk about a lot with her friend John Reinhart that there are gospel proclaimers those charged by the Lord to share the truth and get the word out and then there's gospel patrons. The people behind the proclaimers that are funding their work and that's one of the positions you all might find yourself in as God continues to bless you.
Does it make sense that I think my I think that my husband actual gift is actual ministry he he notes that work well and he's a great disciple or of other man, and I feel like he's a little thick afraid patient identity had been in his profession and he bit nervous to make that move you to know nothing of moneymaker, but literally the worker. Yeah, let's do this at work and have to had a break here, but I love this conversation so you stay on the line will talk a bit more off the air and appreciate your call so much today and we do Jamie thank you very much.
Stay with us listening to moneywise live with Rob last time Steve Moore I would like to take some more calls.
Maybe yours 800-525-7000.
We have open lines in the book of Proverbs verse 10 says choose my instruction instead of silver knowledge rather than choice gold chatting a bit today with Amy at 800-5257 well Jamie were so glad for your call today and as you were explaining just before the break. Your 52 your husband's 57 you've gone through the process of selling a business which is resulted in a a cash out of that business financial windfall as a result of the sale that allows you to get up in one fell swoop achieve your retirement goals. Financially speaking, and so as we were talking about before the break, given your role as steward of God's resources. This is a stewardship conversation in terms of stewardship of those financial dollars, but also stewardship of your time.
You and your husband together in terms of his vocation. Your vocation together and your ministry. You were pointing out that you see. Perhaps a giftedness in his life that might lead him more toward ministry activity that's exciting. So I think it really does come down to looking at. Okay, first of all with the financial resources. What is the appropriate level of risk. Now that you've achieved your goals, your husband obviously has had a gift of making money. Whether that's through business enterprise or in the stock market and perhaps you do take a bit more risk than somebody who would just all of a sudden we were trying to convert this to a passive income stream, because the goal is to make more money to be able to give more away, but I think you will need to have a meeting of the minds on that after prayerful conversation but then there's the stewardship of your time together as a couple but also his time moving forward. He still young man of 57. Lots of opportunity whether that's in business that's going to continue to generate dollars that could be redirected into the kingdom or perhaps into more full-time vocational ministry you said you've identified a teaching gift that he has. So I think you know that's really the thing that you need to consider and I want to mention 1 Perhaps Pl. to go that I think might be a real blessing if you've heard of half-time founded by Bob Buford. There's a book by that title.
The halftime Institute has for 20 years been equipping leaders to think about these things you'll for leaders who have been gifted with the abilities your describing the question is in that second season of life. How does God want you to use that and they give you a process in the strategy to really come up with and envision what that could look like. And it doesn't automatically mean you're going to her he's gonna come out of the marketplace. In fact, half-time alumni 60% of them stay in the marketplace with greater clarity and purpose, but the other 40% either shift to something new, perhaps more aligned with true vocational ministry or something else altogether. You can find out more online it halftime Institute.org but regardless of how you do it.
I think it's a season where he and you together need to think and pray through and perhaps with a real intentional strategy. What this next season of life can look like for the two of you, and here's what I'm confident God is going to usual and insignificant ways Jamie were glad that you called today will be praying for you and your husband that you seek God's perfect will may happen real quick may not happen for several years but that's a nice problem to have, and we wish you the best. Thanks, Knoxville, Tennessee hello Scott what's on your mind. My call this my wife and I are first-time homebuyers may have about 5% or home, but we're wondering if rent might be an option sure what that is yeah well you know I'm not a big fan of rent-to-own Scott. I'd really rather you just cannot stay put. Continue renting with the goal of keeping your lifestyle at a minimum, really focusing in on that spending plan to try to generate as much margin as you can that could fund or continue to fund this down payment savings account that you have. Assuming you don't have any credit card debt that you're carrying a balance on and that you have an emergency fund already in place and just, you know, take the time, perhaps longer than you want to to get up to that 20% of leases close to it as possible. The challenge with rent-to-own is you typically pay more in rent every month and you would as a renter and not all of that extra payment is going to be applied to the purchase price. You're also typically responsible for repairs even though you don't own the home yet, and if your later miss a payment.
The deal could be canceled without any refund.
So I think you know unless it's a part of a scenario where it's a part of a government run revitalization project that protects you against some of the things I just mentioned, typically rent-to-own is not the preferable option.
So again as much as you might desire to get into that home that you own quicker. I would just kind of stay it out. Wait and you know continue to save so you have the right down payment going. Scott, thank you for that question. I'm sure it's one that many others have wondered or are wondering about today and perhaps that's help them as well. Thank you so very much. Nashville, Tennessee. Lori L, what's on your mind and how can we help couple of CD that are maturing very shortly. Lesson 30 day and are not sure what to do with them and it didn't really citable. I don't know whether to put it back into another TD by environmentally responsible. Scott hey I think my gold on my list here that an annuity for a favorite charity pay my property taxes a year in advance pay my utility try to do that here in advance, anything Abby didn't think much of my yeah well that's fabulous U thoughtlessly given this some thought sees that it's a sizable amount of money and what is the purpose of this money mean how does this money relate to. Let's say you know the retirement income sources you're looking for for the future. Is this a part of that or is this separate and aside from that, now it Okay so you have in are you working currently retired almost 68 okay very good and you have income sources covered through Social Security and other means is that right now I do not have to carry know I'm a Federal employee okay but what you have coming in from the federal government retirement system is covering all of your bills so far. Yeah, yeah. Okay. All right. And you know I think the the opportunity here is to really think in terms of you having the reserves you need and then whatever's beyond that.
Being able to put that to work in a way that is reasonable and really think about this in terms of you know what might come your way and what's an appropriate amount that you need to have on hand because you've even mentioned some giving opportunities here and I think in terms of your reserves.
I'd love for you to have in this season of your life at least six months. Some folks would like to have, you know, even as much is 12 months. It's really a piece of mine thing in reserves that where you put that I wouldn't put that into a CD in these low low interest rates. I'd rather you just park that in a high-yield savings account or you can get below .5 .6% something like that about half of 1% with the rest of it apart from anything you designate forgiving and you with that you could look at a charitable annuity, but I'd prefer you to look at what's called a donor advised fund with the National Christian foundation, which is a great tool to use for your giving dollars but anything that you're not allocating forgiving or that's not in the reserves bucket I think. Then the question is how do I have that working for me in a way that's appropriate for a steward were seeking a return but where it's commensurate to your age and risk tolerance goals and objectives, and typically in this season of life are you looking to preserve what you have and then grow it modestly it would either be a stock and bond portfolio with the majority allocated to fixed income, smaller portion to stocks or if you wanted something guaranteed for you transfer the risk to an insurance company, then an annuity so I would recommend you connect with a certified kingdom advisor there in Nashville. We have some great ones to do some planning. You can find one in your area moneywise live.org just click find a CK nice to have you joining us today on moneywise live let's go back to work calls Juneau, Alaska. Kristi's sweater weather up there today. There is no way. Well, it's good to be brisk nice to have the sun out what your question today I have a question about block chain.
I received it online phone that said another user has accessed your block chain account to my knowledge I don't have a block chain account and so I figure this is a phishing scam but when I went to look up what block chain and I talked about shared ledger with thousands of computers that talked about a month and a verified transaction can involve crypto currency contract records or any other valuable information. So I began to wonder maybe trying to access my bank accounts and investment accounts.
Well Kristi, I would suspect your initial inclination was correct. This is essentially a phishing scam where there just kind of blanketing emails out there trying to get you to put in to respond first and then in doing so, provide sensitive information your own personal information financially or otherwise that they can then use to compromise other types of accounts is probably not anything other that because if you had a block chain account even in one of the more popular brands you would you know about it and get out. In that case you are in this case you don't, so I think just ignoring this is probably the best thing to do now. Anytime you see something like this. Come along it's a good reminder that you need to be following some important steps just to safeguard yourself. Generally, including pulling a copy of your own credit report from the three bureaus regularly. I do that it annual credit report.com. If you do see some suspicious information we find out one of your accounts is been compromised. Probably not a bad idea to do a free credit freeze with each of the bureaus which just means that there can be a four digit pin number that needs to be provided by anyone who tries to pull a copy of your credit report. They won't be able to do that without that four digit pin and it will stop them from opening accounts fraudulently in your name and then beyond that just monitoring your other active accounts, changing your passwords regularly using strong passwords, not just repeating the same. You know the passwords that don't pass muster. If you will, and then other things like in your arty sounds like aware of this. Clicking on links in emails or doing business, providing financial information over public Wi-Fi. If you're doing those things. I think you should be okay but I would just disregard this and use it as a reminder just to stay on top of these types of things that make sense Kristi, thank you very much yes ma'am thanks for your call. Thanks, Krista God bless St. Louis small hello Dan, welcome to moneywise live.
How can we help I have a question about what would be best to do it 401(k) I have with an employer and I part time with them. I don't work full time with them, but I understand first of all that you can't roll it over into an IRA and not share 59 1/2 are less used. I think leave the company or quit the company and another under employed. That's right, you would need to separate from the company in order to rule that out. That's correct, but can you roll it over when you are 59 1/2.
It just depends upon the plan so not all 401(k)s are created equal. So you would have to talk to the plan administrator just to find out if you have options beyond 59 1/2 it would ultimately be up to them. In some cases you cannot roll it out under Indy any condition until you separate from the company. In other cases, you may be able to after 59 and have it really just comes down to your particular plan okay because I don't work very often with them even though technically I'm still an employee and elevate what they they stop contributing to the employees, 401(k)s and what they did what they became an employee owned company and we have shares in the company and I have I have money and that to that I've earned and if I do quit you know if I could roll both of those over into an IRA and the other question is from listening prior programs.
I'll be 59 1/2 and another and another month, and it is better would it be better. The main question is to roll it over.
If I do that into a regular IRA. Our Roth IRA requested dance a couple things on that number one yes anything that's in a qualified account could be rolled out to an IRA.
So as long as you determine that it is in fact in a qualified account, meaning a retirement vehicle, then you could roll its into a single IRA. Even those coming for multiple accounts with your company when it gets there. You then have the option to convert it to a Roth but when you're nearing retirement that you typically are not going to get as much benefit from converting it because you simply just don't have the time for it to benefit from the tax-free growth and arguably in this may not be true for you, but in many cases when you're nearing retirement.
Even though you're only working part-time from them.
Your total income is going to be perhaps at or near its peak, which means you're going to be in a higher tax bracket.
Whereas if you were to wait and pull this out in retirement at a lower tax bracket because you have less income, less earned income then you you would benefit from having it remain in the traditional IRA. Now the couple of things may not be true for this situation. In your case, meaning a you may not be at the higher highest and of your earning potential and you may be earning actually more in retirement that would be a consideration or and we won't know this, but if we think there's gonna be higher tax rates down the road which clearly there could be, then there may be a benefit to rolling it or converting it to the Roth now, but generally speaking, Dan. Your better just to leave it at this age in the tax-deferred environment.
Let it continue to grow and then take it out as income when you need it. Down the road. Then, thank you very much for your call today. Let's see if we can get to one more greens Ville Indiana hello Robert, what's on your mind. I my mom is going to sell her house. My dad passed away and now they got a $29,000 balloon payment and she was to move into a condo, but my dad didn't believe in life insurance. What should we do so. What is the value of the home. Robert H. Pollard daughter hundred and 70,000 okay and what does the total of the note. That will have to be paid 29,000.
Okay, so there's no other mortgage on it whatsoever. So if this is her primary residence.
Sounds like it has been for quite a while. There won't be any taxes due on the gain so she would sell it. Take the proceeds satisfies a part of the closing, the balloon payment that is coming due and then the rest could be used euro for another purchase. Ideally you'd buy for cash. You know what would be the next property, but if she can't find something for the proceeds you know of a roughly $141,000, then it at that point she may need to get a small mortgage.
The question then would just be cash flow and how that fits into the overall budget. But the idea would be. She sells it to satisfies the note takes the proceeds and moves on to whatever the next place is what you said you think that would be a condo or townhome of some sort so that would be the typical approach you want to take at this point. Does it make sense yes she did 80 years old and she were looking for what she would have after when she would retire okay and moneywise that's what were looking at, you know what the audit what we ought to know by four and with that payment and everything okay is you sure II think I think the next step. Robert prior to even the sale is to really look at the budget side of this and so look at all of her expenses. Look at the various assets and income sources she has with her that Social Security hers are in a portion of your dad's and whatever other income. She has coming in and compare that to the budget the expenses that she's gonna have looking at the proceeds of the house and figuring out what she can afford moving forward in terms of a new home, but also now making sure that fits in the overall spending plan and I think to help you do that it would be really wise to connect with one of our moneywise coaches you can do that on our website. Robert moneywise live.org there's no cost right now is just a couple week wait to get matched up with the coach. These are volunteers that have been trained.
This is their ministry helping people do these types of things walking alongside you and your mom to help her set up the spending plan. Look at all the numbers both on the income and the expense side, and then as a part of that beginning to think through what might be the right plan moving forward with her home in terms of this next purchase. So I would encourage you to do that. If you have other questions along the way, don't hesitate to give us a call back and again website moneywise live.org just click connect with the coach know Rob Robert mentioned that his dad didn't believe in life insurance. We have no idea why exactly, but a lot of people of that generation the Boomer generation, maybe even a little before one of people think that way.
What would be your thoughts. Me. Does everyone need life insurance every time when you should just ignore it. Well not everyone needs life insurance. However, most people do and what I would say is while you're still in your working years. While people are still depending upon you, and in the event the Lord calls you home while you're still working and providing for those in your family life insurance is a way to continue to provide beyond your life because you can replace that lost income so there's not a hardship created so I believe it's entirely biblical and by using term insurance buying pure insurance you could do it in a way that's very cost-effective and where you can get the proper amount of coverage so it's not about transferring your trust away from the Lord. Ultimately, our trust is in the Lord by you know, for everything but life insurance I believe is a great way to provide beyond your life financially. Rob, thanks very much will come back and do it again tomorrow sounds good Steve, thanks this program moneywise live well this program is a partnership between Moody radio and moneywise media also with you, wrapped up in that triumvirate there without your support. Prayerful and financial support. We just wouldn't be here each day for Rob West, I'm Steve Moore. Thanks for listening.
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