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Economic Update: Booming

MoneyWise / Rob West and Steve Moore
The Truth Network Radio
April 28, 2021 8:03 am

Economic Update: Booming

MoneyWise / Rob West and Steve Moore

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April 28, 2021 8:03 am

No one alive today has ever before gone through the economic conditions of this past year. The dramatic market fluctuations and unprecedented government intervention have left many investors wondering, “Where are we now?” On the next MoneyWise Live, host Rob West welcomes investing expert Mark Biller to help answer that question. Then Rob will answer your calls and financial questions. That’s on the next MoneyWise Live, where biblical wisdom meets today’s finances—weekdays at 4pm Eastern/3pm Central on Moody Radio.

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But for me that story was a needed reminder that it doesn't matter whether our homes are big or small it only matters whether willing to enjoy the little things that God gave us today like a tarp tent. If you happen to be looking for a new place to put up a tarp of your own. We are United faith mortgage United faith mortgage is a DBA of United mortgage Corp. 25 Millville Park Rd., Melville, NY. Licensed mortgage banker for licensing information, go to an MLS consumer corporate MLS number 1330. Equal housing lender not licensed in Alaska, Hawaii, Georgia, Massachusetts, North Dakota, South Dakota and Utah investing I got John Templeton once wrote that it's dangerous to think this time is different, but it's also true that no one alive is ever gone through the past years. Market conditions Rob West dramatic market fluctuations in unprecedented government intervention has left many investors wondering where are we now, today, I welcome investing expert Mark Miller to help answer that then of course it's all your calls 800-525-7000 800-525-7000. This is moneywise live with the Bible shapes our financial decisions. Well, Mark Miller, our good friend is executive editor of sound mind investing in our go to guy for making sense of market trends Mark welcome back to the program.

Good to be back with Rob, so making sense of today's market trends.

A tall order to market conditions that will certainly do our best. I know you well and you the man for the job was no doubt about that. We don't need to go over all the plot twists of the past year. Most investors are all too familiar with them, but Mark wanted to begin by giving us a sense of where we are right now yeah sure so big picture. You know it's been over a year since the coded economic shutdown started. It's been six months now since the positive vaccine news last November that really reignited the US stock market rally and were over three months into those vaccines being administered in size here in the US now and so what we are finding is the evidence is starting to pile up on the economic front that the recovery really is in full swing and SMI. We always try to steer clear of the narratives and look closely at the data, so I wrote an article earlier this earlier this month that looked just objectively at a handful of these important data points and tried to interpret what that data was saying both about the economy and then also what that means for our investments in the months ahead. Yeah, that sounds very good, before we dive into the details though you laid some important ground rules for how investors should use this information so wanted to take us through that, certainly, so there's always the temptation to hear the type of information that were about to discuss and then feel like you gotta go apply that by making a bunch of changes to your investments and that's really not what were suggesting here, certainly not for most moneywise listeners. If you've got a well thought out plan and you've got that minimum 5 to 10 year type time horizon that were always talking about. You can probably leave things alone.

In terms of your portfolio. So if that's the case why bother talking about this at all in and we run into that and SMI as well. People are always wonderful, why are you telling me this. If I'm not supposed to change my investments based on it, and the reason is that there are always people who are either just getting started as investors or they have in a lump sum that they need to invest in their trying to figure out when to put that to work.

Maybe on the other side. People that are thinking about making a significant withdrawal in the next several months and those types of situations. It can be really helpful to think through some of these shorter-term factors slot at the very least market reminds us that we don't know what we don't know we should always maintain that long-term perspective because of her trying to call short-term moves in the market well were to be hard pressed to do that but we got about a minute before first breaks once you begin to dig into your assessment of the economy in general, sure, I'll give it kind of the big picture framework that will hit the details on the other side of the break, so are our big picture frameworks sense that vaccine news came out last November has been that starting around the second quarter of this year we were going to see some really strong economic and market data and that was based largely on the fact that we're going to be heading. This period of really easy year-over-year comparisons from last year. Plus we finally see the economic reopening starting and we have all that massive government central-bank support.

So basically this perfect storm was brewing in terms of generating eye-popping economic numbers very good. Well, just after the break will dig into some of the details related to the economy will talk about employment will talk about goods manufacturing look at the server side, even consumer confidence will apply all of this to your investing strategy as well. That's just around the corner with our guest today, Mark Miller, of sound mind investing learn more sound mind then all your calls and just a bit hundred 525-7000. This is moneywise live moneywise live on Rob last Mike yesterday Mark Miller sound mind investing can find more also find the article that's the basis of our conversation today, written by Mark Miller.

It's called economic update: booming and I think that does in fact some up.

Where were at today.

The question is where were headed, but we also love to get to some of your calls and questions today.

800-525-7000. Specifically, in the first part of the broadcast. If you have a question related to investment strategy.

Maybe you're thinking about your long-term investments. Maybe you're one of those that we've heard from recently that pulled out of the market last year in the midst of the pandemic you're wondering, is this the time to go back in.

Should you make a change in your investment strategy as you head into a retirement season of life. Whatever's on your mind today. I would love to allow Mark to take some of your questions will do that in the first half hour. Here's the number with your investing questions right now 800-525-7000. We'd love to hear from you market just before the break you were giving us an assessment of the economy in general, at a high level dig into a bit more the details. Yeah, sure. So we talked about how we had this expectation of what we were going to see as the spring rolled around, and then as the March data finally did start coming in earlier this month in early April that really shifted from being out in the future. Future possibility to a present reality, and we started seeing these actual numbers starting the rip higher and we haven't even gotten to the heart of the second quarter yet so were still kinda early in this process.

As far as what we are. We've been expecting.

So in that article I focused on four particular examples to kinda make this case. First was that the March nonfarm employment showed an increase of over 900,000 jobs which was up from February, which is already significant at a little under 400,000 now.

The key here.

Rob was the expectations. Again, people have been expecting this increase, but the increase that they were expecting was 660,000, and we came in whale well over 900,000 so well, we've still got a long way to go to get all the way back to the pre-covert employment levels.

The jobs recovery is clearly in full swing already. The second point that I focused on the article was the March growth number for US goods manufacturing and other stuff that we make was the highest growth rate in roughly 40 years. So just up huge increase there as well. The third one was a little more surprising that the services side of the economy and that was surprisingly strong in March as well.

The reason that I keep saying it was surprising. Is everyone expected that it would take longer for the services side of the economy to pick up again because things are still closed, but these numbers for March indicated that that services growth was already picking up fast and again this was, you know, highest in 25 years in terms of the growth rate there as well.

In the last number that we focused on was the US consumer confidence that was up big in March versus February and we actually just got the April print, which was up huge again. Even, you know, so building from February to March and again the April so there's clearly some pretty significant reopening optimism out there among normal people to guess, in many respects, the question is has all of that been priced into the market or is there still some more room to go on the upside will get to that of the moment, but the bottom line of what I'm hearing Mark is that what we're seeing is the economy as a whole is looking pretty healthy right that's why I titled it booming Rob because you know these four numbers for the most important points, employment goods, services, confidence, they're all flying higher and and again. Importantly, they're all beating the already high expectations that people have for this. Some of this is obviously a reflection of how bad the numbers that were comparing to have been, but were still blowing away. These expectations and this is showing there really is legitimate economic recovery underway, and there's really no reason to think that won't continue for at least a while longer because as I said were really just that that the beginning of the second quarter data and we know that these next few months are going to continue to see some pretty easy hurdles and set ups when were comparing. You know, to a year ago and 1/4 ago.

So we think this is going. You know, persisting the rest of the spring end of the summer. Quite possibly even through the rest of the year. Interesting. It's all right.

We want to take some your questions today will also continue unpacking this article that Mark is written economic update booming you'll find this half-hour taking your calls and questions on investment related topics. We'd love to hear from you what's on your mind today 800-525-7000 Mark. Let's go to the phones and take Joe's call Joe's calling from Meridian, Mississippi Joe, you're next on the program. Go ahead okay thank you. Retired pastor retirement through nondenominational pawn about 300,000 and got a money market is that too conservative. Do I need to hold a long run spread that out with more get more back into the stock market very good market thoughts. Yeah, it's always daunting to expose that that nest egg to risk when you're you're in retirement. But what you know what we generally recommend is that you do need to have some exposure to two stocks to bonds to other risk assets because retirement typically lasts quite a while for folks these days and if you're looking at a decade or two decades, sometimes even longer of making that money stretch. You know the you can't just leave that in in the safest savings type products. Most people can't afford to do that because you do have to keep pace with the relentless march of inflation. And so every year the value of those dollars is becoming a little less than a little less and so even just to keep pace with the purchasing power of today's dollars you need to have something that will earn some return so the is always balancing that risk and reward. But I would say Joe that you you are wise to be thinking maybe some of that needs to go out into the markets. Rob your thoughts Joe what are you needing right now is anything from this portfolio mean are you is your expenses covered. Apart from these assets pretty much up now for the last several months on the drawing 300 okay and that 300 a month is basically what you need to cover all of your bills on top of what other income sources you have is a right that's correct okay one of you accumulated in this retirement fund all in questionnaire right now yes or the last I checked every other week board to what 303,000 last time I looked okay and you see a change in your income in the near future use of moving from semiretired to fully retired, you win is that next big transition point. Okay well just began an interim pastorate, so I guess it's fiction to climb back up for little bit here that's probably current transition not be looking at or about what you expect at some point you go, fully retired, which would mean you'd be relying fully on Social Security plus any income you draw off of this portfolio, or do you have additional income sources when you're fully retired. There is one additional source before my wife passed.

We looked at and when she retired. We can choose in the state retirement system to have her money come just to her to come to us both and so at her passing that comes on to me now I see. Okay, so between those two sources, Social Security, and that retirement from your wife would you expect that that would cover the total of your expenses each month for the most part, unless something else came into the picture like larger medical expenses or long-term care, something like that. I would think so, yes, you know that's always a shot in the dark.

Just bring it the way they are now. Especially if tighten the belt and a couple of very yeah so that's a good place to be. Mark, you know, Joe's obviously you know all of his expenses for the most part should be covered from Social Security and this other retirement income. So given these got about 300,000. The obviously we'd encourage them to connect with a professional leader at sound mind investing or find the CK there in Mississippi to come up with an investment strategy, but at a high level.

What should he be thinking about in terms of the right portfolio for him.

Yeah, if expenses are covered. That is certainly the key then you can afford to keep that relatively conservative so traditionally that would've that would mean a very high percentage and bonds.

Now bonds are yielding a whole lot right now but that is still a relatively safe way to hopefully maintain purchasing power.

Even if you're not gaining purchasing power over time. So I would certainly say you know half to two thirds of that portfolio probably would be appropriate to have an conservative savings and bond -like investments so and then you know, depending on the risk tolerance, and so forth how you feel about putting some of that at higher risk than the stock market, you could look at that with a smaller portion of the portfolio. I would agree with that. I think the bottom line here Joe is the given that this money needs to last a long time with the Lord Terry's new good health probably need to be putting it to work within a very conservative fashion. So check out the or find the CK in your area to pause more to come back to moneywise live for God's word in the section of your financial decisions taking your calls today 800-525-7000 particular executive editor of sound mind investing is on with me today. Sound mind is where you can find article from Mark Miller on the economy and where were at.

Today we've been discussing that a lot more detail behind our discussion today is available again. Sound mind Let's head to Austin Texas.

John you want to talk about inflation what your question for Mark Miller. All dues future different stuff that were waiting real day value right now you you your inject meeting in the last year or even future bill were talking like close to $6 trillion.

That amendment been injected into the economy, which usually causes inflation and usually you know increases prices and that which also stifles productivity and growth and all those other things that come along with it. So for an investment standpoint, it's really hard to kind, you know, quantified something like that and what you should really be into market thoughts yeah you know John, ironically, bring that up because the May issue of our newsletter which adjusted our website about four hours ago. The cover article of that newsletter is balancing inflation fears with market realities and it's a deep dive into this exact topic that you brought up were clearly seeing inflation signs that are popping up all around us were seeing commodities prices.

Just ripping that's starting to bleed through end of the prices of every day items that that we all purchase food prices and and so forth. So the big question is is this just the reflation of the economy following this big shot down or is this a new inflationary trend and it it is very difficult to interpret that at this point because if you'll remember back with me coming out of the great financial crisis in 2009 we had all of these same predictions about inflation. We had new policies, new quantitative easing money printing a lot of new debt and there was a lot of concern that inflation was going to take off then to the course it didn't. We didn't see that inflation we don't have time to go and all of that right here, but that's what this article digs deep into why didn't we see that inflation and what are the factors that might be different this time as there are some that people are pointing to.

Specifically, the fiscal spending side from the government that's putting money in the hands of people directly to spend so there's there's a much deeper dive available on our website but you know I would just caution folks while you do want to have some protection in case this inflation ball really does keep rolling. We feel like it is a little bit premature. Still, in spite of the evidence and the evidence that we think is going to be really kinda coming at us in the next few months. In terms of headline inflation measures. We think those are gonna look really bad here in the next couple of months, but we still think that there is a strong case to be made that that a lot of that may not be long-lasting. You want to get to overboard on the inflation protection in our portfolios. Very good, John. We appreciate your call today. It's a great question, one that's on a lot of folks minds just around the corner marks can be back with us to take more of your questions were to talk about this economic recovery, and deal with Wendy's issue related to the auto industry will also talk about how to invest retirement assets that push your questions at 800-525-7000 to moneywise live on Rob West Mark Miller along with me today, taking your calls and questions 800-525-7000 doing her best to apply the truths of Scripture what you're dealing with in your investments and your whole financial life as we do here on moneywise live each day.

Let me mention if you haven't connected with one of our moneywise coaches we have coaches available ready to serve you. They want to walk alongside you to help you get your spending plan set up perhaps develop a debt repayment plan or giving plan will also teach you some of the key biblical principles related to your finances that we talk about every day on moneywise will teach you those along the way. Over a six or eight we process the coaching is free will ask you to buy workbook a digital workbook for a small amount of money $25 if you can afford it will actually cover it for you but you just had over website moneywise click connect with the coach and our coaches would be delighted to work with you overtaking your calls again 800-525-7000 Mark before we go back to the phones you are describing all that you're seeing in the economy analyzing the data, which is really strong at this point, how does all of that that you articulated really translate into the markets moving forward in your estimation, yeah, unfortunately, it does get harder trying to make that leap from the economy to the market and really the most important take away for all the listeners today hit get from this conversation really is that point that the economy does not equal the stock market.

It's important understand that stock market has already been pricing in the strong recovery in the economy. Ever since the vaccine started coming out in November so that's not to say that the stock markets can roll over and crash now or anything like that but it's important to have perspective and that perspective is that the S&P 500 stock market index is up about 90% from lows last March, it's 23% higher today than it was before the covert bear market started in February of last year so a lot of today's good news is already priced in to the stock market. So I would just caution folks who are maybe thinking wow are having the incredible economic data that's really going to propel the stock market forward. Well, we may have already had that in reverse order. We had the stock market propelled forward in anticipation of what were now seeing today in the economic data and you know if we look back to the last bear market. I'm sorry. The last big bear market back in 2008 2009 what happened coming out of that one was we rallied very significantly.

The stock market rallied very significantly for about a year and then we hit a summer time 20% or so correction which everybody freaked out about because everyone thought oh no, were rolling back over into this financial crisis, but it wasn't that it was just the market had come so far over that first year or so and then it it needed some time to work through incorrect and it really would not be a huge surprise if we saw something similar may be this summer.

A lot of times these things happen over the summer. During the slower market months, but I would encourage people to not necessarily think that that's the beginning of the end. If we see some kind of pullback like that. Yeah.

Very good. Well helpful analysis Mark as we think about our investing portfolios. Let's go back to the phones, Newcastle, Indiana, Jim, you're next on moneywise live go answer hello yes go ahead and increase education real life and didn't do much retirement until two years ago. I'm 63 I got about 30,000 32,000 maybe an IRA Wellington fund through Vanguard 6040 split just started my wife's IRA will more conservative on one of their retirement things you like on the 10 year tenure retirement scoped out things about me 57%. Anyway, I got a house that I got about 30,000 in equity and one we are renting out that I have 50,000 equity I just wondered what you would recommend this fires future investment how I should do the balance on you and how long you plan to continue to work just based on your plans today. Jim I say then 15 years of the Lord help okay so still quite a bit of time Mark to go. He's got a 6040 split on his current investment portfolios obviously adding to it. Any thoughts yeah I would say Jim that you know without knowing you know a lot more detail that that sounds pretty appropriate for where you are. You've got you got this 10 year or so runway ahead of you before retirement and were always pointing out that you need to have that 5 to 10 year time horizon to be invested in the stock market to write out any downturns. Use it certainly too early to give up on the growth that the stock market would provide. But at the same time you're close enough to the end goal that you don't want to go to Wilde with the risk either you know is we're talking about earlier with Joe near the biggest issue really is going to be balancing the retirement expenses with the retirement income and it's certainly not too early to start thinking about those details in terms of what you will have coming in through Social Security and any other income sources what your current expenses are likely to look like in retirement and that's where you can start to hone in on how these investments are going to supplement that other income to make sure that you're able to cover those expenses.

Very good and we appreciate your call today's marker about out of time today. Charles called from Huntley, Illinois wanted to ask about the deficit spending and how that's can impact the economy over the next decade look for you to share your final thoughts today for those folks that are just concerned and you addressed a bit of this in our inflation conversation. A moment ago, but a lot of folks are just concerned about what they're seeing going on and how that might affect the economy and ultimately the markets and at the end of the day, their 401(k) any final remarks on that.

Yeah, and I think that it's appropriate to be concerned because some of these policies are not necessarily great for the long term, economy, and for individuals know the one thing that I would throw out there that a lot of people miss is that if the deficit spending and and in John's question earlier if we see this and persistent inflation. What history shows this is that real assets including stocks typically do not necessarily struggle in an environment of reasonably low inflation. So unless we see breakout inflation which we truly have not seen for the past 40+ years even a a lower but higher level of inflation is not likely to devastate your stock investments now would be tougher on bonds for sure by stocks, real estate, those types of things often hold up well. Very good. Marco is great to have you along with us today. Folks if you want to learn more about sound mind, sound you can read his article economic update booming again sound Mark, thanks for stopping by.

Thank you. More of your calls just around the corner on any financial topic 800-525-7000.

This is moneywise back to moneywise live on Rob Wes along with us today taking your calls and questions on anything financially hundred 525-7000. Month then just encourage you if you haven't yet supported. Moneywise, media and all that we do here to bring you God's wisdom for your finances and you prayerfully consider that would certainly appreciate it. We are listener supported everything we do from this broadcaster. Coaches are Apple all the content moneywise and so many other resources that were able to provide is only because of your generous support. Would you consider being a financial partner, monthly, or one time. Whatever you can do would certainly be grateful moneywise just click the donate button and it would go a long way to helping us continue to do the work that God has called us to do. Let's head back to the phones.

Mark is in Chicago, Illinois Mark, how can we help you today.

Thank you for taking my call.

My wife and I really appreciate you showing it so the wisdom is so appreciated from the worldview. My wife and I are going to be moving and it's deftly a sellers market right now. Looking forward to selling our current home in Chicago now looking to relocate. Go to Michigan and the housing market is on fire right now and we put a bid on a home. Unfortunately, it was not accepted.

There was actually 26 other offers on the home and I'm just wondering what would your counsel be. We don't feel comfortable spending 30, 40, even $50,000 over the asking price, which is what's happening now you think this market is going to cool off or how would you guide us yeah what's great? And you know made some estimates, the housing market is overvalued. Nationally, about 5 1/2%. You might say that doesn't sound like a lot in know it's not me. When we look at where housing prices of come over the last decade. Clearly there are up significantly. A lot of this demand is real, though. It's not a repeat of 2008 2009 were we saw folks with really loose lending practices which gave folks money to buy homes they genuinely could not afford. We also saw a lot of speculative building on the part of the homebuilders back in 2008 2009 there were some real flaws in our financial system related to housing and lending. That's not here today. We've got much tighter lending standards. Really this is driven and fueled, in large part by the millennial's which of the largest generation reaching age 30 having kids buying single-family homes, folks moving out of smaller apartments because of work. Remote policies in school and home because they want a little more space and they have the liberty to do that and just a genuine housing shortage by some estimates, there's 2 million homes in terms of the deficit.

From what the real need and demand is today and so all of that is driven housing prices to where they are today. Now do we think that will continue to see the incredible skyrocketing prices, probably not. It's going to cool off. I don't expect the crash anytime soon.

Probably more like a slower release of the air in the market were we don't see the growth rates but you know there's nothing wrong with waiting to see if prices moderate, but they're not likely to go down anytime soon.

Only slow their gains so I think really it comes down Mark two.

Are you prepared to buy a home. I like the idea that you're saying you're not willing to overpay. That's a good practice. It's clearly gonna make it a bit harder to buy home because of the competition and the demand is giving folks the opportunity to find really strong cash offers.

In many cases, 10, 20 or 30% over the true market value.

I resist the temptation to change those prices. But as long as you're going and buying for a fair price with the at least 20% down with a payment that fits well within your budget. I define that is no more than 25% of your take-home pay toward principal, interest, taxes and insurance that I think you know is always your plan to stay in the home for a while was no reason not to proceed but I realize you need to make a matter of prayer because since there's a lot of competition out there, and it can be frustrating that you'll see home after home after home that you think could be the one and you know you'll see it bought right out from under you with with stronger bids, often over market value.

So it's not good to be easy, but I don't have any problem with you proceeding to look for home and asked the Lord to give you the one that's the right one for you as long as you don't push to buy something outside of your budget.

Does it make sense of Mark yes absolutely.

And we followed your principles for years now. I know I got Gracie were in a solid position.

We have zero debt. Our current home is completely paid off and we have over six months salary saved up and we are planning for retirement. And so, we just don't want to get caught up in a sort of market frenzy and I don't want to be driven by the market, but to driven by the Lord spoke loud, confident the Lord will honor your desire to be a faithful steward of Mark. I really appreciate the approach you take and we see lots of bubbles in the past you know that the tulip bulb craze of the 1600s and then we had and then we had the housing bubble and so that we don't want to get caught up in that I wouldn't call this one of those although clearly the market is red-hot so you just have to be careful not to make an emotional purchase beyond what you should pay for reasonably, but I'm confident based on what you just described.

You guys will make a prudent decision. So thanks for checking in with us today appreciate your encouragement. May the Lord bless you on the Cleveland, Ohio, Connie, what's on your mind. Like I need Derek.

No IRA and I was thinking about moving them into a guaranteed lifetime annuity and I just wondered what your thoughts were on that product that she works so the CD the proceeds from the CDs. What's the total roughly 34,000 okay and this is money that you don't expect to need anytime soon. I liquid cash out 401(k) and I'm thinking I need to either retire at 62 or 65 and I think that I'll work with my planner on the 401K money to create income gap between Social Security and my 401(k). I see you very good.

You know I'm not a big fan of the guaranteed income fixed annuity. They tend to be expensive. There is liquid in terms of loser flexibility on how you can use that money but they do accomplish one significant thing that's attractive to a lot of folks in that you're transferring the risk from yourself in terms of investing it on your own or with a professional you're transferring the risk to the insurance company and they're assuming that risk in exchange for the fees and commissions that you're going to pay in know their ability to go invest that money and then give you a guaranteed amount that's obviously lower than their expectation of what they can earn so I think the key is, does this fit well with into your overall financial plan and does it give you little bit more peace of mind to know that there's kind of a guarantee. Therefore, if you will, so it can go down even if you're giving up some of the flexibility to access the funds and potential return over the long run in terms of your ability to earn perhaps a bit more if you'd be willing to assume the risk so tell me about that.

Does that give you peace of mind. If you were to have this is a part of your portfolio. I have it at I I knew like five years ago that potential of having to retire early, was there and I just didn't want you. I don't have a lot of money, and so I didn't want to lose a lot of money.

It was just too risky to the going down all the time and knowing that I would need to act that Palestine fell 70% of my 401(k) is just sitting there in a money market. Unfortunately, I'm looking at doing something a little bit different on 30%.

I have my 401(k) okay you know I think you'd benefit to the county from it really an overall look at this, whether that's with your current planner or somebody else I'd probably get a couple of additional opinions on how you could look at the total of your financial life.

Your 401(k) how that should be invested.

Look at your health. The timing on your retirement and also this 34,000 and just see if there is another solution that doesn't involve you sitting in money market or paying the fees that would come with an insurance contract like an annuity. So I think I'd connect with a certified kingdom advisor there Cleveland.

There are some great ones interview perhaps two or three get some other ideas on what you should be looking at as you prepare for this next season of life.

With regard to your investment strategy. You can find a CK there in Cleveland it moneywise and if you have any questions after you do that give us a call back but I think that's gonna be great next step for you and we appreciate your call today, Albany, Oregon, Richard, we have just a minute left. Go ahead. Currently .125 Bullock started currently 4.5%. They want to lower the rate on a mortgage that 3.125% okay you owe on the mortgage return $68,000 okay and what is your remaining years on this.

The remaining oil we refinance to 2012 okay nine years then you got 21 years left in with this new mortgage be years. I don't see that of the paperwork, but I'm also okay yeah I'd I'd look at a new 20 year. I wouldn't go another 30 years and I be looking for rate under 3% also be looking to make sure you stay in the home and that you're not paying more than 1 to 2% in closing costs bank could be a great resource for you to get a couple more quotes give any questions after that give us a call back.

Richard folks like you belong with us today.

We covered a lot of ground.

Hey let me say thanks to my team, Amy Rios, Deb Solomon, Jim Henry were so glad you been here with us moneywise live is a partnership between movie radio and moneywise media come back to join us tomorrow. Middle her flesh

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