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Why You Need an Umbrella Policy

MoneyWise / Rob West and Steve Moore
The Truth Network Radio
March 26, 2021 8:03 am

Why You Need an Umbrella Policy

MoneyWise / Rob West and Steve Moore

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March 26, 2021 8:03 am

Insurance can be complicated and hard to understand. But despite all that, it’s pretty handy at times. So, it’s good to know the different kinds of coverage you need to protect yourself and your family. On the next MoneyWise Live, hosts Rob West and Steve Moore explain why a certain type of policy could be a real lifesaver for your finances. Then they’ll answer your financial questions from a biblical perspective. Find out why you need an umbrella policy on MoneyWise Live at 4pm Eastern/3pm Central on Moody Radio.

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This is Doug Hastings, VP of Moody radio and were thankful for support from our listeners, and businesses like United faith mortgage mortgage commercials are rarely exciting. So to make it slightly more interesting.

Here my nieces to do it for me. Interest rates continue to drop like my sister's baby teeth, uncle Larry had still not stair. It was rates are boring. Talk historically low this year is even more boring. Talk historically lower than the previous point talk historically low sounds boring for so many listeners who just wanted to deal at refinancing right now could see the amount of light faith in God and that love some borrowers could potentially save hundreds monthly and tens and tens of thousands over the life of the loan, and that he didn't put 20% down before somebody ends up having to pay PMI gave uncle Brian I sent we are United faith mortgage United faith mortgage is a DBA of United mortgage Corp. 25 Millville Park Rd., Millville, NY license mortgage backer for licensing information, go to an MLS consumer access.org corporate MLS number 1330.

Equal housing lender not licensed in Alaska, Hawaii, Georgia, Massachusetts, North Dakota, South Dakota and Utah Philadelphia life insurance salesman said you know what you do if your husband does thinking about insurance is no better, and it's pretty strange place policy calls for for me. So Rob today. It's what umbrellas and poodles. You just can't help yourself like that, but it's way more fun this way okay but remember this Friday right so what do we need to know about umbrella policies.

Well it's a great question and simply, it's a type of insurance policy that protects your assets and even your future earnings from catastrophic lawsuits. Think of it as a booster policy that gives you protection beyond what you have with your home and auto policies and one of the best things about umbrella policies is is that they're inexpensive. Typically, you can add let's say $1 million of additional coverage for just a few hundred dollars a year. Okay, what is reasonable, but some folks might be thinking I lead a quiet life. I mind my own business I don't have any reason for this kind of crazy million-dollar coverage, yes, but most people have at least one reason to get an umbrella policy. For example, let's say you have a teenage driver. I happen to have one of those in my house.

Now, as of the last few months and that's pretty typical.

The chances of having an accident go up considerably with a teenage driver tried to my wife, not worrying about that too much, but it does happen and that's why auto insurance premiums are so high and umbrella policy will pay out above those liability limits. If your youthful driver injure someone else, or damages their car or other property. Here's another one. You have a swimming pool there is always the risk that someone could have a serious head or neck injury diving into a pool or possibly even drowned that could easily result in the financial liability beyond which your homeowners policy would pay but it doesn't even have to be a pool simply only owning a trampoline put you at risk for potential lawsuit. If a neighbor kid is injured while bouncing up and down you'd want to have extra coverage to know I can see it now lawyers making lazy circles in the sky your house Rob West. I yeah exactly. I do, here's what you might not see coming.

You get carried away on social media.

How could that possibly cost you $1 million, without liability yet. Here's how harming someone's reputation. Let's say you're not happy with a home remodeling project. You take it out of the contractor on social media. By the way, we should always be Christlike little disclaimer there, he or she then sues you for loss of business with a web who knows but just fighting the lawsuit would be expensive and no more lawyer jokes, please state the worse your homeowners policy that's designed to cover personal injuries may not cover a judgment against you for someone's reputation. I Never really thought about that.

So if you don't have an umbrella policy.

Choose your words carefully when I may be yelping specific business or contract.

Always. And here's another one.

Let's say you coach a Little League team or some other sport. Do you know what type of coverage.

The league has in the event that car is damaged by flyball or worse, a players injured well and umbrella policy would protect you. In most cases.

Also, you want to make sure your regular homeowners policy doesn't exclude coverage more athletic activities. Actually, some do you know about this because you do a lot of that kind of thing. I guess that one might fall under the under the no good deed goes unpunished category, but let's that never happens to you. Can anything else.

Well, here's an obvious one that affects almost 40% of households you own a dog. The insurance information Institute says that dog related injuries and some years reach. Listen to this $700 million and some homeowners policies exclude coverage for certain types of breed, so if you like the idea of your Rottweiler, pit bull keeping your house safe from burglars. Well, I would encourage you to have an umbrella policy. You know, not so much with golden retrievers, though others so friendly they probably show the burglar with silverware as That's what beavers do come back and chat some more picture calls doing anything call right now will answer the phone. I promise 800-525-7000 to speak with Rob West 800-525-7000. This is God's wisdom for your money, your finances, speak to us today about any of those things we already hope you are too.

Here's her phone number 800-525-7000 Rob and the last thing to think about when it comes to umbrella policies. Probably not everyone needs one. But maybe more people need one really have given serious thought and other than the fact that you had my golden retriever Peg Murphy. He would do exactly what you were describing. There is one more reason Steve felt whether maybe there's many more, but I'll mention one more to have an umbrella policy and that would be for folks that have a long commute. Now the more miles you drive, the more likely you are to have an accident in your auto insurance premiums are probably hard and with but it's possible you could be hit with damages to go beyond the limits of the policy. Other drivers and passengers, even their families in the states can sue for current and future medical expenses, pain-and-suffering, and even lost income.

So again and umbrella policy. The cost a few hundred dollars a year is a small price to pay for detecting your asset. So I think it's something to consider. Just give you a call to your insurance agent. Whoever handles your property and casualty tell them you'd like to price out an umbrella policy, probably starting $1 million, maybe going up from there.

If you have a bigger state and I think that ended coverage will give you some peace of mind. Do you think, and I'm not being facetious or do you think you could buy 1/2 million dollar policy substantially cheaper. Yeah, you know. Typically policies will started $1 million. So for most folks but it's worth checking you want to make sure it fits into the budget original good catch. Okay. I wish my there are lots of things and started $1 million. My salary is not one of them know there's something that starts at $1 million. Okay 800-525-7000. Let's take some calls. Tuscaloosa, Alabama Sally, are you and your loved ones are safe from all of the tornado activity and everything yesterday. Thank you so much talk with you. We stayed for about an hour really thankful that it didn't Tuscaloosa well. God bless you.

God bless you. Thanks. How can we help you guys may need some long-term health care soon or we would have someone come into our home and someone suggested that we might be interested in a reverse mortgage. Our home is paid for, well, it is an option. Diane where you would convert that equity to an income stream that could be used to supplement other income sources to pay for bills expenses beyond what you have the ability to cover and certainly long-term care that could be one of those that could dramatically increase the expenses you have on a monthly basis.

It's not my preferred option. I prefer not to fund takes your lifestyle and realize medical is not just lifestyle, in the sense that it's necessary, but I don't like to fund monthly expenses with debt, which is essentially what you be doing, but they tend to be expensive so there's some steep upfront cost that can include lender fees initial mortgage insurance costs on ongoing mandatory mortgage insurance premiums, closing costs, not to mention the insurer at the interest rate that's imputed and there is well and usually those costs are more than a traditional mortgage.

It also does create some challenges or kite may be complications in terms of you leaving the property to children if that was a desire who may not have funds to pay off the loan when you and your husband pass and if they can't refinance and they have to sell it. That may or may not be an issue with relatives living with you.

If you have that along the way, they could conceivably you know have a challenge at death at your death if they were still living because they would obviously need to relocate in just a few other issues there. So I think the first question is, are there other options in terms of you feel being able to fund this is their other assets that could be liquidated is that you no time to downsize and perhaps generate some some cash that way. What other options might you have while I'm just not sure we have a rental house that we don't make a lot of profit on what you did more for ministry out of selling that house that's about the only other thing yeah and that would be another option is to look at you, whether it's time if if you're not taking much in off that property to liquidate that which would free up assets that could be then invested very conservatively to generate an income stream that you could use to fund these expenses and I keep your home home unencumbered, which is gives you a little bit more flexibility. I realize you said you're using that for ministry.

I love that. And so if that was where the Lord was leading in terms of you being able to maintain that for that purpose that I know that's between you and the Lord. I certainly wouldn't challenge you to go against that. But if you felt like you had the freedom to liquidate that property. That sounds like it's probably the most accessible's you know funds that you could get your hands on that could again be handed to a professional to manage appropriately. But, you know, as a last resort of a reverse mortgage certainly is an option, and if you have the right amount of equity in the home. Certainly you do if you own it, free and clear. You know you be able to convert that to an income stream.

So just make sure you get with somebody whose you can really shop that around.

If you are going to consider that to get you the very most competitive costs and fees associated with that before you proceed. But I would use that as a last resort.

Sally we wish you and your husband the very best. Thank you very much for calling in today. Let's quickly moved to Akron Akron Ohio Angel, what's your umbrella insurance policy question today, your auto insurance. I know it's good question and it's in addition to so it's a separate policy Angel that picks up when you are home or auto liability limit is reached, and so the ideas you would exhaust that first and then the umbrella policy kicks in a separate policy that then takes you to the limit of that particular policy, whatever that is my new million dollars or more, but certainly separate and in addition to the limits on the existing homeowners and auto okay thanks for your call today and again our phone number is 800-525-7000. If you have something financial you like to speak with Rob West about today's a great day to do it. We have several open lines and we'd love to hear from you. 800 557 phone anywhere will be right back to the next time you're online, you might want to consider moving your mouse over to well where we have to move it so you can type in moneywise.org moneywise.org and there you'll find lots of great information about who we are what we do lots of free resources, things you can download to use to help you manage your personal finances. Things like budget templates that kind of thing. Also archives of past radio programs and easy and quick ways to find a certified kingdom advisor in your area and also how to connect with a budget coach right you mentioned something to me the other day about our budget, coaches, and how much activity they're receiving from our listeners and were blessed to have a way what we sure are these are men and women who are volunteers but they been especially trained to come alongside you to help you work through your debt repayment plan your spending plan getting you set up on the moneywise app teaching you some of these key biblical principles we share on the program each day and doing that in a virtual sense so you would connect using WebCams and its private engagement with these coaches and this is part of their ministry.

They love what they do.

So we normally are in a position where there is so often a two week or more weight to get connected with the coach sometimes is been this long as 60 days, but we've recently onboard it a whole new team of coaches were training them all the time and so we got some capacity now so if you'd like to connect with the coach shows no cost for the coaching. We will ask you if you can do pay for a small fee for a digital workbook but other than that, no cost, and we'd love to have you engage with these folks they be delighted to come alongside you.

Here's how you do it just had your website moneywise.org moneywise I.org click connect with the coach and they'll get you in the queue and will look forward to hearing your testimony on the backend rep thanks. Let's connect with Claudette calling us today from the Fort Lauderdale Florida hi Claudette, thanks for calling my old stomping ground. How can we help you today. Thank you for your yes if you need to have one in the small business.

It's a great question Claudette in a couple of things you should probably have a personal umbrella policy. If your business and business is instructor structured as an LLC or another type of corporation that would protect your personal assets, but as an LLC.

You would typically want to have a complete commercial umbrella policy which is in the same way Claudette is going to extend the limits of some of your primary liability insurance policies like general liability insurance and if you have commercial auto insurance and will extend that it's a good idea if your business frequently interacts with customers works on someone else's property allows the public to visit during open hours.

If you have folks coming in to see you up for any of those reasons that's where that's a commercial umbrella policy can kick in again. It's the same idea. So I would certainly be talking to your insurance agent about that and I think it will go a long way toward giving you some peace of mind making sure your in why's with God's money. Something since client time. Absolutely yes ma'am thanks very much. Yeah, you know, I hadn't thought about that. But even if you just own up ice cream shop or a florist shop. Anyone who's coming in like trip in the parking lot or something like that they could sue you for million dollars overnight. Well that's right yeah it's, you know, again just added protection beyond what your typical general commercial policy would cover great information. Tamarack, Florida hello Ruth, what your question for up to hell. I want K girls I have seen how much you think you need to open yes to the same it wouldn't be the same account, but a Roth 401(k) is going to be treated the same from a tax standpoint as a Roth IRA different contribution limits for them, but essentially with the Roth 401(k) when you put money and through salary deferral so out of your paycheck going right into that Roth 401(k), you're not going to get the tax deduction federally that you would with a traditional 401(k) and then that money will grow tax-free. And then it you when you separate from the company you could roll it out to a Roth IRA. You wouldn't have the required minimum distributions and you take out all the gains completely tax-free in retirement as opposed to the traditional 401(k) and traditional IRA which go hand in hand. Those give you the deduction on the front end. When you make the contribution they grow tax-deferred in them you take it out in retirement after 59 1/2.

It's treated as ordinary income. The way you set that up the truth. Do you Roth 401(k) has to be available through your place of business through your work. It would be made available to you as a benefit. Hopefully they offer some sort of matching you would tell them you want to open an account, you tell them what percent of your income you want to made is a salary deferral and then you begin contributions and you is really not a minimum.

In terms of what you need to start with the Roth IRA very similar although you'd set that up on your own with one of the brokerage firms you could use Vanguard or Schwab or fidelity he could use one of the online brokers like betterment to well front that you'd open the account and then you could begin making the contributions not as a salary deferral but as a direct contribution that you would make up to the limits each year. Does that make sense so Ruth will 401(k) up and get go to the bank and opened one of the accounts I gained knowledge to do your job. So that's an alternate. I cannot have it know, but you could open a Roth IRA and so you would you know you could go to your bank as you said, I'd probably think about going to one of the larger brokerage firms like Charles Schwab or fidelity to open the Roth IRA, but you can absolutely do that you could put in 6000. And if you're over age 50. You could put in 7000 in any well for this year for sure. Between now and when you file your 2021 tax and the benefit Rob of going to someone like Schwaber fed fidelity versus your local bank would be that they would give you what better rates. Why would I want to yeah you know better investment options. Typically, so you'd have a whole cadre of really high quality low-cost exchange traded funds and mutual funds available.

You were as you might have a more limited investment universe in unite your local bank debit your local bank might. I'm just thinking out loud here. They might be giving giving you a toaster or a microwave for opening a new account and online they just don't do that. That's true, although I think they stopped the toasters back in 86.

Are you suggesting a mold. No, I didn't say that it, although I know I'm not but I since I work with you as long as I have. I know what you're insinuating how to spell insinuating but I know they still give lollipops out, though I understand I haven't been to a teller long time and biscuits for your dog in the okay okay did one of us get distracted. Okay Palm Beach Gardens, Florida hi Kelly, how can we help my uncle pay for credit card no Kelly, I'm so sorry to hear about your husband's passing. Listen were going to take a short break. You hold on the line we come back we will in 800-525-7000 Sublette with us today where your money and your life moneywise live with Rob last talking with Kelly in Florida is 58 told her husband passed away recently and left with about $200,000 house is paid, or so the money is currently in a CD is wondering just what to do with the money you Kelly, thank you for holding so what are your income sources now and are they enough to cover your bills every month. Okay. All right. And what is your age 50 okay see you plan to continue to work for some time, correct and so five I see yes and then at that point to. Do you have a retirement account through your current place of work now.

No retirement. Okay, so really this 200,000+ the Social Security survivor's benefits or your own benefits down the road would really be the primary or exclusive source of your provision is that right okay yeah so I think it makes a lot of sense. And when you're in a good spot in the sense that you don't have any debt. I love the fact the house is paid for. It sounds like you've kept your lifestyle quite modest and you know this is an opportunity for you to put this money to work. I'm glad it's you right now and somewhere that safe FDIC insured and protected against loss.

I think you know this is an opportunity for you to engage with an investment professional someone who could really take responsibility for managing this money not taking any unnecessary risk.

The goal is not to beat the market. Or, you know beat any particular index. The goal is to achieve your God-given goals and objectives. Where is God leading you know if you are to retire in the next couple years.

What is your budget look like what money would you have available, both from survivors benefits and and ultimately your own Social Security.

Perhaps down the road there might be a bit larger. If it continues to grow to full retirement age, and then what could this account managed properly do in terms of helping to supplement your income, or if you didn't need it continue to grow very conservatively, not taking a lot of risk that it would be there if you needed knows that you had a major long-term care expense. You need to pay for no in-home care or nursing home care down the road something like that. So I would encourage you to do Kelly to go over all of this evaluate your insurance.

Look at your budget. Talk about your plans or survivors benefits and Social Security as well as how this money should be managed. I'd interview, probably two or three a certified kingdom advisors there in South Florida.

Find the one that's the best fit for you and ultimately you be looking for somebody not only to help you. Just look at your financial plan and also to take out responsibility for managing these funds and you could find one of those professionals who has the certified kingdom advisor designation, meaning that not only are they experienced and admit high standards in character and integrity. But they been specially trained to bring a biblical worldview of money to their advice and counsel you could find that person at moneywise.

Live.org just click find a CK Kelly God bless you and thank you very much for your call today. Let's go out to Broadview, Illinois hi Sandra, what's on your mind. I've gotten a lot the one main financial name-calling at me. Tell me that I'm prequalified particular cologne for 20,000 out. I know it's not that I like it yeah well there are based on your good credit to their out there just looking for business. You see, the way these folks make money is they look for people to lend money to and if you'll take them up on that loan.

And they're excited to be able to earn the interest off of that loan.

No, it's not anything other than just a business solicitation so you know when this happens regularly.

There was a time where that was. Credit card offers.

This is a little different but there was a time Stephen the five ever told you this, where I kept all of the credit card offers. I got in the mail for the year that came up above my waist and mean it was massive and you know that's just the way it works right now, a lot of these come by email now or you get solicited online as you login to your various financial accounts, but they haven't given up on snail mail either so I would just shred it and then the dispose of it and move on and you move forward and try to live your life, debt-free the best of your ability. While that stat came up to your waist, yeah, which is missing the short inseam we've never discussed humans right you know I'm six to so right. Funny okay let people see them in their own minds. I okay it is Friday is is somewhere in Northeast Ohio.

Susie, welcome to the program. How can we help young adult who is looking to buy the home of an elderly relative she is still living circumstances need by 6 to 12 months. I tremble as he can. We been working a few at his job and he really has not because he is young and had a chance to build up a good credit history and his job is that does pay sufficiently, he said his credit score is currently 695 thank hoping to get that score higher and also in the best place to start in regard to your current mortgage. Thanks, at which a cancer that counts currently has yeah well the first thing Susie in terms of building that's credit credit score this a couple of things he could do number one would be to become an authorized user on your credit card.

If you are interested in him doing that he doesn't have to use it. And as long as you check and make sure that the credit information is reported to the authorized users credit file, which it typically is. Then, as long as your consistent on-time payer that good credit history would be reported to his report which would you add another account some good history and a positive repayment.

Now keep in mind the only downside to that is, assuming he's not going to charge budget things if you had a missed payment that would also be reported, which could actually hurt him.

So just be careful. There he could open a secured credit card at his bank where he put a couple hundred dollars on deposit they'd issue a credit card he could then put a recurring charge on that a budgeted item pay it off every month and full and no that would be reported to his credit report. The third thing is there something called a credit builder loan which is essentially loans geared toward helping borrowers establish credit. The bank sets aside the loan amount, usually between $300,000 and you receive the money after you've made all the monthly payments, usually with just a little bit of interest but the whole intent behind it is to help someone build their credit so those things could be done to kinda put him in a position to do this now in terms of the mortgage after he's gotten his credit score of just as high as he can. Over this in a seven month period or use it. 6 to 12 months through these means that I just mentioned, then he's gonna want to shop that mortgage get at least three offers he could use one of them being his local bank, but I look for at least two online because you can often find the best terms, most competitive interest rates and I did send a bank rate.com when he's ready to find the two online lenders to compete for his business there constantly updating who has the best rates and terms in any given market.

Does that help though Susie yes there credit card. He really want for parents. Her market really be have access to the most competitive rates and terms above 740 right Susie, thank you for your call today. Wish you and your son the best moneywise love I you're listening to moneywise live where best to help you understand establish your life money and say hi to Janet just second, the first know you got something I can see with the furled brown have something on your well maybe it's Steve that were approaching the end of the month and I want to make sure you know that the invitation is there to become an investor in moneywise media.

How do you do that well. We simply remind you that this is the listener supported ministry. So what we do to bring you this program every day. Our web team bringing all the great content moneywise.org our app team bringing you the most innovative tools in biblical finance are helping hands ministry all of that is only possible due to your generous support because there's no well one family or organization that underwrites this where a nonprofit 501(c)(3) and we do what we do because of your generosity. So if you haven't thought about giving one time or even becoming a monthly partner we would be certainly grateful. Especially here at the end of the month. As we try to meet budget every month and roll over the next month so here's how you do it. Just go to moneywise live.org right there at the top you see the button that says donate and you can give quickly and safely.

Yeah, but those guys on the radio. They don't really live in a budget do they mean really yeah absolute indeed we do indeed we do and again thank you very much for your prayers and financial participation that allows us to pet budget on a monthly basis.

Just like around right Tennessee Janet, thanks for your patience. What's on your heart. Hi, thank you so much for taking my call inherited a home that I privately inherited. I didn't even know but its value is $340,000 paid off and everything I don't want the home so my thought is I like to sell it to some to a younger couple younger members of the family. If they're interested in it like 180,000 hundred 90,000. My first question is I do that cannot take off that difference between the appraised value of the home for which is a lot on my taxpayer. No you can't in and I would check with a tax preparer on how to handle this because you would likely need to file a gift tax return. Here's the thing Janet you when you sell a property to a family member. The IRS will typically take a closer look at that transaction than they would normally and the reason is because of what you're saying and you're doing it because you just want to bless this younger couple, but if it's below fair market value.

The IRS looks at that as a gift and a basically any sale price that's less than the property's fair market value with a decent amount of wriggle wiggle room that could go up as high as 25%. The IRS is going to see that as a gift. However, with that said, you know, anything that exceeds the 15,000 annual exclusion would go against the current lifetime exemption which it today is 11.7 million in terms of what you would be able to have available is as a gift so that could change. Obviously, over time, but right now other than just filing that return and acknowledging that that gift was made. It probably wouldn't owe anything on that, but it is something to make sure you do properly because you certainly wouldn't want the IRS to come back down the road say this was not handled the way it should have been and that's why when you're doing something like this.

Not only would you want a real estate attorney involved to make sure you do the contract and everything is done properly on the sale you'd want to make sure everything was handled properly from a tax standpoint for you personally and you wouldn't get to a deduction on that amount. It would be again seen as a gift. Does that make sense to you yet and in number to my question is it a family member does not want to buy it on the market I'm 67 years old my question and I know that I think it used to be that you had to reinvest that money that you get a statement that a certain period of time. My question is do I have to do and how much. At that time that I'm 67. We are in terms of capital gains tax. I guess so. We got what you're thinking of.

There is typically when you have a real estate investment properties are not your primary residence, you would have to pay capital gains on it when it sold at a profit, and you can push that forward by reinvesting the proceeds into a like property, essentially deferring that capital gains the issue here that which is going to work in your favor. And again you'd want to get professional counsel look over this, but what you're typically gonna find is that there is a stepped-up basis. So at death. When you inherited this property. There was a step up in the basis as to the current market value, which means you know you shouldn't have any capital gains unless you've seen some appreciation since you got it so you could go ahead and sell it. Find a real estate professional to sell it competitively and you could take that money and redeployed in whatever you want, other investments, real estate, stocks and bonds to increase your giving whatever the Lord leads you to Janet.

Always nice to speak with a generous person and you certainly sound like that and we wish you the very best. Thanks very much out to Arkansas quickly and Evelyn. We know you been holding for a bit. We appreciate that what you question your 87.

Are you still with us. Evelyn well it's good to know we have a summary of her question because I think we may have just lost her so Evelyn, if you're continuing to listen to my understanding that she has a life insurance policy worth $18,000. Rob initially she was planning on that for burial expenses but those are now already paid for in some way, the beneficiary of a beneficiary of this policy is her sister who is 20 years younger.

She's wondering should I cash that in now and put the cash in her checking account or should she wait until she passes away, and then gets that money, how will this work with the income tax.

So what are your thoughts well you know I think the key here is that if she doesn't need this policy, which it sounds like she does, and it was for specific purpose, which was the burial expenses.

That's no longer needed. Her sister perhaps doesn't need the money and she's continuing to pay for this policy. I would just allow that policy to lapse, take the cash value out and if she could keep that it's in its her policy. She's the one is been paying in despite the fact that she had her sister listed as the beneficiary. Now she feels an obligation or a desire to give that to her. Her sister, she could certainly do that as a gift and it would go back to what we were talking about with Janet in terms of she could do up to 15,000 a year. It sounds like that would cover it. And now, if she kept the policy and it paid out as a death benefit there would be no tax on the life insurance benefit, but I probably cash that out. She did no longer have that expense each month and then she could do with the cash value which he wants you okay good enough Evelyn. We hope you are still listening and I'm sorry and I apologize for the way we must've lost your phone line.

These these days, things like that to happen, but God bless you think here's a quick email question dear Rob, this is from Mildred. She says dear Rob, you've often spoken about investing in gold and silver and I get that. But what about things like precious gems or collectibles. Yeah you know it. Investing in those is not my cup of tea. I guess you could say now there's gonna be some people out there that say well I love it and I've done well I just go back to if you're if it's purely for an investment. Then we got a look at risk and reward how much risk are we taking for what reward over what period of time and you know when I evaluate investing in precious metals are not precious metals but gems. As you said, or other collectibles. It's just typically with the markup in the purchase the markup in the sale. In terms of the deal or whoever the buyer is securing those and then just the long-term performance of the appreciation of the collectibles are the gems versus what you might be able to do with that you know properly diversified stock and bond portfolio. I just know the data would say you're not going to do as well. Now, maybe there's another benefit in that could be that you know you just enjoyed. It's more of a hobby well factored in as a hobby than a not as an investment, but purely from an investment standpoint, not my first choice. Okay, good. Thanks, Trent Ellis go quickly to Cortland, Ohio, and your final color of the day. Let's see if we can squeeze it in.

Okay, yeah, real quick.

I have retirement fund it to build up a been retired for about two and half years I've had thoughts of maybe buying like a hunting camper investing in some real estate maybe just wondering will I be taking too much about it on taxes. If I do something like that. Well, and there's something called a self-directed IRA. Are you familiar with that term no okay I would look that up basically a self-directed IRA which is a very specific type of IRA and you have to use a very specific custodian who holds the self-directed IRAs, but essentially allows you to take money.

That's an IRA which could be you could roll it in from another IRA or from a 401(k) and you can invest in real estate. So essentially you would hold the real estate in the self-directed IRA so you're not having to take a distribution from the IRA in order to make that purchase.

So I would not do a little homework I just Google self-directed IRA that would get you started and if that was something that you really felt like you wanted to do. I would absolutely encourage you to do it that way.

So you're not pulling it out paying all this tax on it you're keeping it in there and you know you're you're accomplishing both things at the same time as I think I know much.

I had a great appreciate that you, thank you very much.

Well Rob. Time has flown today were just about out of that to quickly for those who might want to check on the money wise app. We talked so much about because were so excited about it. What's the best way in the best place to go to to see that and maybe even downloaded you can do that in your app store. Whether that's the Apple App Store in the Google play store or we have a web app as well. You can find an app.moneywise.org Steve, it's phenomenal. The team three full-time developers, constantly upgrading it constantly adding new features to community all the content but the best digital envelope system on the market. It's all in there. So go downloaded today and a check in thank you very much. It's been a wonderful week.

My I give you my best and your family as well and I will come back Monday and our production team today. And all this week.

And of course Jim moneywise.

I is a partnership between the radio and moneywise media right safely join us again next week


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