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Smart Move—Donating Stock

MoneyWise / Rob West and Steve Moore
The Truth Network Radio
May 18, 2021 8:03 am

Smart Move—Donating Stock

MoneyWise / Rob West and Steve Moore

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May 18, 2021 8:03 am

Christians are commanded to be generous toward God’s Kingdom and there’s no wrong way to do it. But with all things considered, some ways may be better than others. On the next MoneyWise Live, host Rob West will talk about one of those better ways to bless others through generosity. Then he’ll answer your calls and questions on various financial topics. That’s MoneyWise Live—where biblical wisdom meets today’s finances, weekdays 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 heading into spring. I've been spending a lot of time pondering, analyzing and debating something extremely important to men and even many women and that's whether a new driver would improve my golf game I would see them somewhere between embarrassing and appalling at golf man do I love it and all my buddies show up with these epic/big maverick Bertha drivers and I can't help but feel like they got this massive advantage on me and my persimmons.

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Equal housing lender not licensed in Alaska, Hawaii, Georgia, Massachusetts, North Dakota, South Dakota and Utah and second Corinthians 9 tells us each one must give as he is decided in his heart, not reluctantly or under compulsion, for God loves a cheerful giver. Probably also appreciates a smart giver by Rob West. Christians are commanded to be generous towards God's kingdom, then there's no wrong way to do it, but some ways may be better than others all talk about one of those ways today that it's all your calls and questions 800-525-7000 800-525-7000. This is moneywise live biblical wisdom meets today's financial decision.

Okay, so while in suspense. I'm talking about donating stocks that we have a caller on the program recently who wanted to donate some of his investments to moneywise and asked how to do it so I thought it would be good to revisit this topic and equip you with the facts so you can take advantage of this kind of giving to your church or favorite ministries. It sometimes a smarter way to give than simply writing checks because it enables you to be even more generous by the way, the folks at the National Christian foundation that a great resource page for doing this and will have a link to it in today's show notes so let's start with an overview of essay you've owned stocks or mutual funds for at least a year in a taxable investment portfolio and they've appreciated in value as many have, you'll likely be able to pay less in taxes.

Give more and improve your personal cash flow, all while simplifying your giving the way to do it is by donating those stocks before the sale.

That way you reduce or eliminate capital gains taxes. You see when you open a giving fund with the National Christian foundation, which we certainly encourage you to do Bill sell the securities and put the net proceeds into your giving fund then you'll be able to recommend grants to your church or ministry that you're passionate about. When you do that you're multiplying the impact of your giving because you eliminate capital gains tax on the stock you donate that increases your giving capacity and if you still like the stock you donated well you can use your increased cash flow to repurchase it. Let's compare traditional giving to donating stock using a figure of $10,000 with traditional giving you would start with that 10,000 in cash.

You write checks to your church or other ministries for that amount.

That obviously qualifies you for a $10,000 charitable deduction if you itemize that you have to keep track of every tax receipt and you also continue to pay at some point capital gains tax on the sale of stocks in your portfolio but let's say instead of catch you donate $10,000 worth of appreciated stock writing here in CF giving fund while in CF sells those stocks tax-free to you and puts the proceeds into your giving fund to be distributed to charities when you still have the 10,000 in cash. You didn't donate which you can then use to reset the basis in your portfolio and you can use your tax savings. Here's the key to be even more generous, but there are even more advantages to donating stock through an NCF giving fund. The first one you might call deduct now grant later you can get a tax deduction this year for the full amount of your donated stock while granting it over several years. It also simplifies things you can make one stock gift that easily supports multiple ministries that you also consolidate tax receipt paperwork under one charity, the National Christian foundation, and you can do it all online. You just sign into your giving fund on in CF's website from any device to see your fund balance make gifts and recommend grants to your favorite charities so you can see this really takes your giving to a whole new level. It enables you to set your giving goals across multiple years. Instead of just what you want to give right now. It's also something that you want to discuss with your financial advisor.

That person is managing your portfolio, but may not really be aware of your giving goals by sharing this with them. They can help you select the best stocks or funds to do so. We hope this encourages you to think a bit outside the box this year with your charitable giving by donating shares of stocks and neutral funds in the folks at the National Christian foundation are ready to help their website again in CF it's a great way to be even more generous with your church and favorite ministries and when you're making your giving decisions. Please remember that moneywise media and Moody radio are entirely listener support without you can provide information they better stewards of God's resources, so to learn that you can make a stock to moneywise your calls or next. 800-525-7000. This is moneywise live where biblical wisdom meets today's financial thanks for joining us today and moneywise live on Rob last year along with us today. Question about how to apply God's in the area of finances to what's going on in your life, what would love to talk to you today we have some phone lines open 800-525-7000. That's 800-525-7000.

Let's start today in Chicagoland and were going to begin with Dale. You are your first on the program. How can help user. Thank you for taking our call went and I were in her 70 were living on pension and the mortgage with four years left to pay on it. The balance is about 40,004.35% interest on that thinking of trying to pay it off using some of our savings current interests were getting off of those savings is between 3 1/4 for our financial planner says the taxes we would have to pay would pull the money out to pay off the mortgage would amount to about 20% in not work doing that for years left to pay. He had a three year plan that we could use to try to pay it off, but that's only saving us a year and we're wondering what your thoughts were on something like that yeah deal is you and your wife talk about the opportunity to be debt free. Let's set the financial side aside for a moment how important that is. Is that to you just in terms of your own convictions.

The desire to be unencumbered. Is that really important or would you be okay waiting again, not looking at the financial side to begin with.

Would like to have done an apartment in regards to our children that would be left if something happened to about they would have to deal with that. That would be a factor for us to have a click would be a factor, yes, but I think you know we've got to consider both sides of the equation we have to look at the dollars and cents, and clearly that's a reality. As a steward of God's resources we want to make the best decisions we can then we need to set alongside that. This idea that we want to pursue a life being debt-free.

If you have the ability to do that. We realize that you know being unencumbered. That gives you flexibility gives you greater peace of mind gives you the ability to respond to the leading of the Lord because you're reducing your expenses, your lifestyle and expense and therefore, you have more margin to follow God and whatever he's leading you toward and as you said, there are other issues as well. You named one related to estate planning. So I think we've got a consider both factors mean, clearly you all are very close. In either case, to being completely debt-free. Having the home paid off if you said we'd rather fund that payoff out of current cash flow and not have to pull out of a retirement account which means that we don't have to pay those taxes, you will pay them at some point the question is, would you rather pay them now or pay them later and obviously if you pass them on. Because you no longer need them throughout the rest of your life than you know it could become an inheritance so that the opportunity to just again fund this out of cash flow I think is fine. There's nothing wrong with that and again were in either case were within four years of doing that so I don't have a strong conviction one way or the other.

I just wouldn't let the financial side, be the only driver if that's really what he's looking at only and not considering these other elements that you named that I think those are worth considering. And you should pray through that asked the Lord to give you one heart and one mind as husband and wife as to how you should proceed. If you lead you to become debt free. Then then do it and perhaps you spread it over to tax years instead of doing it in one year so it doesn't all come out at once. If that were the bumper portion of this up into a higher bracket, but if you're okay waiting and hanging on to this data begin funding it out of cash flow.

That's obviously going to preserve that capital, it's gonna take a little bit longer.

It'll be a bit of a wash in terms of the the expense that you're saving versus what you're earning on the money.

And you know it'll be paid off in no time. So I'm not going to give you definitive I would just say there's more to it than just the financial and I don't want you all to feel bad if you decide you'd rather just go ahead and get this paid off and be free and clear. Even if you have to pay the tax. Does that make sense that it doesn't appreciate your input on that and a low prayerfully consider what you have suggested. All right, very good. We appreciate your call Dale. May the Lord bless you and I appreciate your desire to be found faithful as you manages resources that let's head to Charleston, South Carolina Michelle, your next of the program. How can we help arbitrate the Previous employer and I'm trying to take it from one company to another and it sound like I'll keep that a lot of money I can check I close the 3P and take the money that I will enter an IRA IP that what IRA check out very good Michelle.

So as you look at this only just ask what roughly is in the account that what's the value of well I like having over 70,000 are you know it does make a lot of sense to actually roll out a 401(k) or 43B when you separate from your employer. Often times, the expenses go up in your no longer with the company you can roll it into your new 401(k) or 43B if that's allowed, it's depends on that particular plan as to whether you can do that that's going to help just from a simplicity standpoint. Now you have one account to manage instead of to the other issue is if you go ahead and roll it to the IRA that you have more flexibility, more choices, both in terms of the investment options as well as the cost, the fees associated with it soon as you get it into an IRA.

You can invest in any stock, bond or mutual fund exchange traded fund as opposed to the limited universe inside that for 3B. So I think you probably want to roll it out again. If you have a new plan and you rather just keep it all together. I think you could look at that is option one, option two would be go ahead and roll that out. It would just be a traditional individual retirement account of traditional IRA that you would open you would complete the surrender paperwork with your previous employers plan administrator provide the account number to the new account that you open and you would never receive that money thereby creating a taxable event. Instead, it would Debbie going directly to the new custodian and they would then deposit the cash in the IRA again. A nontaxable event and then you would begin managing it now where would you do that will get if you don't go into your new companies plan if that's available, you would probably want to look at. So perhaps one of the Robo advisors where you could get a low cost properly diversified investment strategy with either Charles Schwab intelligent portfolios. The Vanguard advisor a better man to one of those where again, you can answer a series of questions though build a low-cost ETF portfolio that just means you'll have investments that cover the landscape of the investment universe both stocks and bonds appropriately allocated for your agent risk tolerance where the cost is very minimal when you're just gonna capture the broad moves of the market between now and retirement, which I suspect is a long way down the road so I would look at that one of those three again the Vanguard advisor Schwab intelligent portfolios or betterment, and again that'll be a very simple easy to use and low cost solution to get good broad diversification so that this money can just keep growing well into the future. Dissent all make sense though okay very good. We appreciate your call today. I hope as you head into this next chapter of employment. God is doing a new work in your life and you're asking him what he has for you. I appreciate your desire to steward these resources really well and will honor that. If you have other questions along the way. Well to pause for a brief break we have lines open. No more calls just around the corner. Here's the number 800-525-7000 800-525-7000. This money was lot of extra being with us today and moneywise lively apply God's truth to your financial life we have phone lines open to hearing from you. Calls and questions today. Here's the number 800-525-7000. That's 800-525-7000 but let's go back to the phones, Homestead, Florida figure next on moneywise let go ahead. Thank you for taking my call. I really appreciate you guys the organization can't continue to bless you. My question on purchasing a home, a new home for my children. Actually, a large home and I want to get a VA loan, but I don't want to put anything down.

I want to actually put up extra thousand dollars down Mark I can put as much of what out towards the mortgage each month. So my question is that I do that or if it better to go ahead and put the money down you are not using the savings that all I see it, is this the home you're going to live in as well.

Are you buying this for your kids. I will be there about my children I see are very good. You just because you can get the hundred percent financing from the VA loan. I still would love for you to go into this with some equity talk to me about the funds available. I realize you have good cash flow and you said you could add an extra thousand dollars over and above the mortgage payment. Even if you were to borrow hundred percent and that's great but what assets do you have that you would draw from from if you were to put a significant down payment will be my GSP account and my RA I have like three different account okay and you have some liquid savings you could tap yet. I do what I have found out Dolly and actually be well actually I naturally have my hands are right away okay and that wouldn't come out of retirement accounts… No retirement account but it wouldn't touch my TSP account which is my large account okay but it is a tax-deferred account.

Meaning if you tapped into that 55,000. It would become taxable income to you know all the okay to rob a Roth IRA. Okay, very good, and in the 4000 a month that you could put toward this, you said this is coming from an annuity is that right so my annuity is actually 4500. I will not be paying utility my daughters agree to okay for the mortgage and you know the insured and what is the value of the home you're looking to buy 450,000 okay well I you know, at a minimum, say I'd put down 10%. So I died look to put down 45,000 and then you know if you wanted to rebuild that with that thousand dollars a month no overtime or at least a portion of it in because I want to make sure you have at least a 3 to 6 month emergency fund. I would prioritize that over continuing to pay down the mortgage that will you go in with some equity reduce the overall amount of the mortgage and the total interest you'll pay over time, and then you still have that great cash flow that you can use to build up some liquid savings outside of retirement accounts. That's gonna be your emergency fund.

If something comes that's unexpected soon as you get to three months expenses. If you don't have any other goals you're solving for, then absolutely you could begin adding an extra thousand dollars a month of the mortgage and you'll see that drop pretty quickly. I realize it's a low interest rate environment. I would just feel better if you went in with at least a 10% down payment so that would be my recommendation. Let's put the 10% down and then let's deal replenish that emergency fund or started.

If you don't have one already outside of retirement accounts using your monthly surplus and when you hit that three months worth of expenses that you can pivot back to the mortgage and and continue to pay it down more aggressively.

Does that make sense.

Sounds great. I really appreciate the yeah all right for I think I well and the Lord bless you as well and I appreciate what you doing for your family and your desire to be found faithful as the steward.

God bless you 800-525-7000.

We got several lines open 800-525-7000. Let's go to Illinois. Marilyn your next on the program.

What's on your mind today call. I'm not. I retire and I several T. Rowe Price I know. Enter affiliated with accounts that I can talk to but I want someone to go over like should I combine my IRA now I'm taking Carrie to raise money income what all and every time I call it their they want to take all my you know they want to liquidate and they want to invest in our farming. Marilyn yeah yeah these advisors that you selected or were they assigned to each of these accounts that are assigned only get information about that account. Should I combine IRAs I several financial at night. In my area network show a few mother they wanted you know you complete all the paperwork they state that I have to trust that they have to liquidate some of my table and the advice they can give me a can and I manage my money comes down to how these professionals are compensated. It sounds like what you're looking for is not an investment advisor compensated based on the assets under management, but a financial planner who's paid by the hour for comprehensive financial planning to look at the investments to look at the tax picture to look at your income sources and do it all from a biblical perspective and then if you decide to consolidated under the management of one advisor, that's a separate decision, so I had to moneywise look for trying to CK choose a financial planner specific to certify as though I will talk tomorrow if you like.

Enjoy the today I moneywise live by God's truth to your financial life remind you as we just past the middle of the month how important your financials can't do what we do on the radio in our app on the web with our coaches.

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Let's go back to the phones. Charles is in Boynton Beach, Florida Charles, I can help you today. Thank you for taking my call. I are in the process that we're looking to purchase bill a whole home that we now we have at least you have a mortgage on it about $130,000. The value of the home is valued at probably around about 50 and also in Runkle home what we were thinking about going expanding both property which can cash out host about 500 550 in cash after seven go property, but the top of your house that you looking to build is gonna cough up somewhere around about 4B somewhere around there to bail and so I wanted to know what you think that it be a good thing.

All the money we get from both sale or scale want to keep the rental and just put down as much as we can. 250 205,000 down on property home that we did. I wanted to get some suggestions on how should I go about yeah I appreciate that's about the rental home how is that cash flowing and are you able to pull some income out of that over and above the expenses yes are probably the rental home on probably gross knitting probably gross and about 800 almost $900 every month okay and going going back about after paying the mortgage on okay very good and is that are you setting aside anything for maintenance and reserves on that. Also to pay the property taxes and insurance is not recognized yet. All that is included in mortgage okay make that mortgage okay very good and I see you have miscellaneous expenses. If you needed to make repairs or things like that but I suspect you have a reserve account.

You know, I think there is that the financial side of this REIT have to look at just the dollars and sense of the old we love the idea being debt-free, but from a business standpoint is the home rental home providing more income each month and you would save by paying off the mortgage that's just got the first consideration beyond this idea of just being completely unencumbered. I think the second issue is perhaps no depending on how long it's been since you had this estimate of building this home for 450,000 you may want to take another look at that before you make this decision just because of what's happening with the price of construction right now me lumber has come and gone through the roof. Right now, many think that's temporary and that again as the economy reopens and supply chains normalize and we we get the economy fully functioning again.

Some of these prices that have run up lumber in particular but just construction across the board is more expensive right now that some of these will soften, but you want to get with the contractor and make sure you really have a not to exceed bid so that you understand based on today's environment, what it's actually at a cost to build this home because you know that 450 could easily turn in the 600,000. If you're not careful and you may be frustrated that you get to the end of this and you end up with the mortgage that you didn't anticipate, and cost overruns and you know it's just an interesting environment right now and and I don't know how it's all going to play out, but we may see a year you know to two years down the road that construction prices come back down. It may be a better environment. Now you can argue that at the same time you know you could get top dollar for these properties in a very strong sellers market right now that would offset that and you like that wouldn't argue with that because there's a case to be made that the housing market is going to soften at the same time that some of these construction prices will soften. So I think we got a look at all of that.

Number one, your conviction and desire to be debt-free, which I would absolutely affirm number two the financial side, trading the cash flow from the rental versus the payoff of the mortgage and how you're going to come out at the end of the note at the end of the month in terms of our you have more or less funds available and then three. Do you have a true accurate picture of what it's gonna cost you to build this home and I feel like what you put all of those together, pray through it now. It will become clear to you how you should proceed to set make sense though.

Next week I am going to build it and having to revive you know the estimate that he gave me this is about maybe a month ago and I know that they increased.

Everything had increased so I don't have to. What Dan I think you like that again.

It was not that it was three. It was probably 3D run about 350 bail and so I'm just estimating gonna cost me about 450 so I already make that increase that increase the hundred thousand dollar increase. I don't think I want to not about already increase about another hundred thousand. What he already quoted me before. Okay well I like this plan anything you know if you're if you've got the ability to see a construction project like that, through which you know people coming out of the other side of building their own homes often say who I never do that again not to scare you but just know what you're going into it sounds like your real estate guy may not receive head rentals and you can understand what goes into that but you know in this environment. Just be prepared it's can be more expensive and will take more time than you expected. But at the end of the day building a home that you've designed being completely debt-free coming out of it with a strong financial footing and some peace of mind, as long as you got good income, you know after that you can live well within your means. I'm not can argue with any of that. I like it.

I just want to make sure you have all the information you need to make the good decision before you proceed. I think meeting with the builder next week is a key part getting a real good understanding of what you can get from both properties so you know what you to come out with in terms of equity evaluating the cash. Your cash position and your cash flow. On the other side of this. Once you input all of those numbers and then praying through how important being debt-free and is is going to give you. Ultimately the decision you need to make it so I'll be praying that the Lord will give you some real clarity and that we appreciate your call today. Charles God bless you.

Yes sir, absolutely. Well, you know that's what it's all about folks. It's really about understanding that first of all, God owns it all and were his manager and that there's principles in his word that really help us understand how should we handle his money. It's as simple as let's live within our means. Let's avoid the use of debt just as Charles was trying to do some margin or some liquidity in our financial lives were not consuming everything the Lord gives us. Let's set long-term goals because the longer term, our perspective, the better our decision today and let's give generously give generously and breaks our money over. That's what it's all about. More to come just to stay with us. This is moneywise decided to moneywise live, this is Rob West got the phone lines open 800-525-7000 as we apply God's truth to your financial life just around the corner were going to talk to us. Sondra and Tampa Bay about mortgage interest. What you can do about that. Whether or not you should do build a home in this environment we just tackle that a moment ago we got a call from Joliet, Illinois that wants to tackle that one as well.

But first, West Palm Beach, Florida.

Mike's on the line and Mike understand you want reduce your taxes. That right all absolutely like to know. I would like to contact you that I thought about giving okay and IRA like that and what sort of number I should be looking at what your idea was that Mike is a W-2 income or do you have a small business that's driving on her taxes are paid. W-2 okay very good. Yeah, you know, so that the two best ways to drive down your tax liability which is all about reducing your taxable income is first of all, giving charitable giving, looking at opportunities to make additional gifts out of your cash flow, which reduces your tax liability which allows you to give even more and perhaps doing that not only out of cash but also doing that out of assets because keep in mind 90% of charitable giving is done in the form of cash, but only 10% of our wealth is held in the form of cash, which means our greatest opportunity for giving is over on our balance sheet whether you have appreciated stocks in a taxable account or your business interest or an asset. You might want to give away a car or something like that. The you don't need anymore looking to replace you can make a contribution at a gift of that to to a ministry of 501(c)(3) so that would be the first opportunity is to say where can I be more generous. Do that in a way that smart so that I could get my tax liability down and give more to the kingdom of the second is absolutely retirement contributions into a retirement account that as that money goes in would give you tax deferral.

So if you have a 401(k) at work or some other type of retirement account where you can increase contributions, thereby decreasing your overall taxable income for the year in your tax liability, which then gives you more growing and compounding for your future those so there would be some other options were involved insurance products and you know if you've Artie Doubt your retirement savings that you can do through your place of business. Things like that but but generally speaking, if you haven't, you've still got more room to do more in the way of retirement savings. Certainly more opportunity in the area of giving those would be your first items that I would check off before you look at other options that make sense to like my charitable giving it to me. Night and I don't know why we are. I was just concerned about As far as putting in the maritime and is there is there a Amount, and I have one IRA here. Take out near as far as they were all like what type of retirement accounts you have access to give a 401(k) at work.

I have a 401(k), my company and I have an IRA. Okay, so you can put it in $19,500 for 2021 for that 401(k) and then an additional $6000 in your IRA so that's can give you $25,500, right off the top. Are you maxing out that 401(k) will okay see you putting the full 19 50. Okay.

And then what about the you are you putting in the full 6000 for the IRA so I'm not two years ago. 19. Last year I was a little nervous about getting a liquid cash collected and I held onto that I could not hear will again put the rights so that would be the next option there and are you married absolutely might bring that up all my wife's company matches whatever she puts in her 401(k) recently I joined her I thought she was putting a lot in there, she would not explain her three money so I don't know. I wanted to put her money away as well. Yes that would be the next option which which are filing jointly with RBC reduce your overall live tax liability and she could put in the same 19,500 at a minimum she should take advantage of that matching portion and then she could have an IRA as well and put another 6000 so I think between the two 401(k)s.

The two IRAs. The charitable giving you're doing, you have some real opportunity to get that tax liability down and get more growing for the future and more going into the kingdom so hopefully that helps. You certainly appreciate your call today. Let's head to Tampa Bay, Florida Sondra, your next of the program. How can we help able almost 25 years and about three years ago and I am a disabled adult son Abner and I noticed that you know the servicing company because my rate is up and I was wondering if I should refinance electronically hidden get some stimulus money.

I don't know what's available and I tried but don't website showing me here that they are the people that ran and I needed some help with the linkage possible because I'm on a limited, very limited income that is pandemic is over. Okay, well, couple of thoughts there. You are entitled to the stimulus the check, which it sounds like you should be. I go to the get my payment portal and and find out the status of that number to the mortgage companies are willing to work with you now more than ever.

And so if you're in a situation on the fixed income that specially where you been impacted by the pandemic. Yeah, they it's worth a phone call just to see if they could give you give some sort of assistance in terms of mortgage forbearance.

Perhaps a temporary reprieve from that payment where they put it on the back and something like that, depending upon your credit score in the income you do have, you may qualify for a refinance. What is the value of your home, and what's the remaining mortgage on it right now. 325 area take.

I know one of the new homes is coming up from the older models from mandate beltline here about three years ago and it sold recently for 400,000 and that's right within my area which you mortgage. I have yet to have about 90,000 left. 7 1/2. Right now, well, okay, so that's really high and what is your credit score, you know, take you know this before the pandemic and in 2019, and I haven't, you know, just leaning right now but I haven't done it. Okay you missed any payments in the last year.

No okay good credit Karma.

Or you could go to annual credit just to check your credit report. Credit karma would help you to check your score. You may have a credit card that will allow you to do that as well. But if you can document your income. You obviously got a lot of equity in this home and you should, hopefully, again assuming you have the income to justify it. You should build get a rate a lot lower I would want to make sure though that you don't extend the term so if you've got 10 years left in this mortgage. I look at the 10 year mortgage not a new 30 year mortgage. So I talked to your current mortgage provider first to see what they can do for you in terms of recasting the mortgage perhaps just lowering that interest rate Sebi on some of the closing costs. Beyond that, you could go to bank to find out who has the best loan programs out there right now that would match your needs and see if you could get a significant reduction in that interest rate that would help take some of the pressure off that payment in a minimum, you may want to explore some forbearance option so it sounds like you got a little bit of homework to do. Sondra, I would start there and then go after you get that information. Give us a call back and let us know what you find. If you have further questions. We appreciate your call today were to finish in South Florida jointly got just a minute left, talk, and helps her.

I have a Ira and 71 and start making R&D next year and I was wondering if I should take our portion maybe 40% and put it in an annuity just to reduce market risk. Yeah, you know, I think.

I mean annuities have their place there, certainly not my favorite tool, nor my first suggestion for most folks just because I'd rather not use an insurance product for my savings and investments. It tends to be somewhat complex.

It tends to be limiting in terms of when you turn over that money lose access to your principal without a lot of fees and surrender charges and the investment universe obviously is much more limited. Although if you're looking to offset the risk, meaning, transfer the risk away from yourself to an insurance company and that gives you peace of mind and you can exchange your principal for an income stream for life or a guaranteed return where you don't have to assume that risk some people like that option. I just know that it's more costly and that they tend to be complicated. These products and if you needed access to that principal because you needed long-term care. You had a major medical event something like that you're giving that up. So my first suggestion.

Duane would be to either with your current advisor or with perhaps a new advisor. Look at how you might structure this portfolio to give you that conservative diversified posterior looking for.

So you've got a much smaller allocation to stocks. Let's say you can whether a downturn in the last 18 months or two years. But where you've got good cash flow could conservative portfolio and you still have access to money. If you want to find a divisor here. You could do that on a website moneywise stable. I will talk a bit more off here that's gonna do it for us. Thanks for tuning in. We appreciate you joining us each afternoon. Moneywise, life is a partnership between Moody radio and moneywise immediately say thank you to Gabby T Rich dad and Amy and think. Thanks you for listening will be back tomorrow. Hope you join us then

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