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Early Mortgage Payoff

MoneyWise / Rob West and Steve Moore
The Truth Network Radio
June 9, 2021 8:03 am

Early Mortgage Payoff

MoneyWise / Rob West and Steve Moore

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June 9, 2021 8:03 am

What if there was a surefire way to put tens of thousands of dollars in your pocket, that’s completely legal, and not a get rich quick scheme—would you be interested? On the next MoneyWise Live, host Rob West will talk about the thousands you can pocket by paying off your mortgage early. Then he’ll address your questions on the financial topics you’d like to discuss. 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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If you're like me watching little kids doing Easter egg hunt is a pretty beautiful thing, but I always feel bad for the littlest of the pack. It always seem so traumatizing to see that little one run for an egg. She has her eye on only to have a bigger cadence sweep in and steal it at the last second Heights, Doug Hastings, with Moody radio and unfortunately the same kind of situation has become a traumatizing reality for families all across the country.

Families are out searching and finding their dream home only to have it pulled away by another hunter at the last second, which is why I'd really like you to meet my friends at United faith mortgage. Unfortunately, this faith focused mortgage team can't scare off the other hunters but they can very quickly get you preapproved and make it look as good as possible to sellers.

They specifically made a commitment to this podcast in our listeners to do all they can to help you. You can find the entire United faith mortgage story of especially reading how their direct lender advantage can often save your family monthly and lifelong money@unitedfaithmortgage.com United faith is a DBA of United mortgage Corp. 25 Millville Park Rd., Melville, NY license mortgage banker for all 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 and if I told you there's a surefire way to put tens of thousands of dollars in your pocket. It's completely legal and just about anybody can do it. Would you be interested. Rob Weston know this isn't a get-rich-quick it's more like get rich slowly with all the money you save by paying off your mortgage early talk about that first today that it's on your calls at 800-525-7000 800-525-7000. This is moneywise live God's principles guide our financial decision. So when you think the amount of interest you pay over the life of a 30 year mortgage should be all the incentive you need to pay off that loan as soon as possible.

Let's say you take out a $250,000 or 30 year mortgage at 4% at the end of that term, you'll have paid almost $150,000 in interest making the true cost of the home closer to 400,000.

But let's say, with 25 years to go you decide to put an extra 200 a month against the principal that will actually shave five years of payments off and you will own the home free and clear and just 20 more years the potential payoff for getting rid of your mortgage early is huge and it really needs to be a priority in your financial decision-making.

There are four steps to getting there that I want to unpack today. First, you need a spending plan, not just because it's a good idea and everyone should have one.

Which is true. You need a budget because you can't start the process of accelerating your mortgage payments without one and setting up your spending plan is now easier than ever with the moneywise app uses the tried-and-true envelope system to make budgeting easy. It will track your spending and reveal things that you can cut out to free up more cash after paying your bills moneywise app is a free download and you can download it anywhere you get your apps to search for moneywise biblical finance.

Now the next step is to determine just how much of that extra cash shall apply to your mortgage but you can even make it a budget category all by itself or by mites and envelope. Remember that even $100 a month extra applied to the principal on your mortgage could shave off a couple years worth of payments so you want to put as much as possible into that extra mortgage payments category that you may start to feel deprived because you've cut out a lot of your fun spending. It helps to celebrate milestones along the way so that a special dinner out. Maybe whatever you paid off another thousand dollars and mortgage principal just to keep celebrating within the budget. The next step is something anyone can do, even if you've been thinking up to this point that you have no surplus cash to put on the mortgage.

It's using money that comes your way outside of your normal paycheck. Some call it found money or mad money. Make a commitment to put that unexpected cash on your mortgage principal as well as the surplus money from your budget.

But where does this extra money come from well it could be just about anywhere overtime pay or work bonus money from work you do on the side, perhaps a tax refund gift money in cash you get from selling things that the trick is to apply that money to your mortgage principal as soon as you get it. I don't think of it as mad money that you can spend any way you like and don't let it sit around tempting you if you haven't set up an online account with your lender do that now most lender websites make it easy to apply extra payments to the principal just by clicking a button or two. By the way while you're logged in, you'll be able to see the running balance of your principal keep track of it. Watch it go down as you make those extra payments that will help you stay motivated and again celebrate your progress are just one more thing left to do, and it's really something you can do it any step of the process. Cut the fat from your budget.

You may think you don't have a dime left over at the end of the month but you really don't know. Unless you cut back everything you can.

Let me give you a few suggestions and we mention a few of these before I cut your cable or satellite service, and go with the streaming package you perhaps can save 50 or hundred dollars a month just doing that alone but look for free entertainment in your community.

The library is a great source of information. Take a break from eating out. It's the rear family that can't save $100 a month by cooking more meals at home, then here's a big one go here without buying new clothes that would probably save hundreds of dollars but you can probably come up with some great ideas yourself if you're intentional about it so you can save money that can be applied to that mortgage. By the way, the sooner you start the more money you'll save that can be put to better use its Proverbs 21 five says it plainly slow and steady plodding brings prosperity and that's over talking about here, diligent study, plotters, and let's get that mortgage paid off your calls or text 800-525-7000 800-525-7000. This is moneywise live for God's principles guide our financial decision.

Delighted to have you along with us today is moneywise live to hear calls and questions.

Here's the number we do have some lines open 800-525-7000.

We started to today by talking about the early mortgage payoff. What can you do to add a bit to your mortgage payment every month. Keep in mind with an amortized loan. It's the interest is calculated on the outstanding principal at the beginning of every. So for a mortgage that would be every month.

So as you pay down that principle, any amount you send over and above that mortgage payment is reducing the principal balance of when that interest is calculated.

It's going to be less and you do that over a long period of time, perhaps making one extra mortgage payment a year. Even if you do it 112, the month or once a year. When you get a bonus or a tax refund your to take a 30 year mortgage and cut it down to around 25 years. In many cases. Now the question that a lot of folks ask is what one about paying off my mortgage versus investing in.

Interestingly, I just read a study the other day looking at five-year stock market returns, and 10 year stock market returns going back to 1970, the S&P 500 compared to the average 30 year fixed rate and depending upon the. Actually paying off your mortgage. The 30 feet year fixed rate one the majority of the time. Now if you look at just those five and 10 year periods and miss some of those big up years especially 2009 and beyond. Obviously you're going to do better in the market but don't discount the fact from a purely financial standpoint that paying off your mortgage is a big deal now. The other reason people often site for keeping mortgage is the tax benefit but keep in mind after the tax cuts and jobs act of 2017.

It really reduced the use of itemized deductions including mortgage interest deductions because so many people are using the standard deduction.

In fact, 82% of homeowners have standard deductions large enough that the mortgage interest deduction isn't providing a tax benefit to them at all. So you have to factor that in and by the way, that's just on the financial side of the house. The real benefit is the joy of being unencumbered, having the peace of mind the flexibility to respond to the leading of the Lord and the Holy Spirit as to where God wants to send you next and just being debt free brings all kinds of benefits that are nonfinancial so prayerfully consider what you might do to accelerate your payoff of your home mortgage, assuming you're giving your living within your means and you've paid off consumer debt and you got that emergency fund. I would be thinking about accelerating the mortgage payoff.

I hope that's helpful and we do have a few lines open.

Still 800-525-7000 in just a moment will talk to a Raffaella Chicago quarry in Omaha were to begin today in Chattanooga, Tennessee Teresa, thank you for your patience. I can help you all that bad really. We have a corporate to carry on our mortgage and injuring $10,000 and a bag around 830 at week 40 extra dollars on my on the wall and it cut a 14 year to 2008. Right now in Leon. He went to property at one we had $17,000 on it that an interest rate cut land property and the other one thing we owe $20,000 on a interest-rate leader can entering home and get out out higher interest rate.

Currently her ears.

All our gold at the homepage for that.

I don't know and I'm trying to wake that laid out though. Patriotic paid how to or I'm really kind that I don't know what do right now. Yeah well I can certainly appreciate that because as I said a moment ago and just the example I was giving about saving and paying off your mortgage versus investing. I think the same applies here that there's the purely financial side of this equation.

Teresa, as you calculate the total interest you're going to pay on your home mortgage or domicile versus investment properties and a higher interest rate and clearly you know you'd typically want to pay off those higher interest rates. First, now here's the exception to that is I look at those investment properties in the sense as a business. I mean it's profit-making endeavor versus your home, which should appreciate over time, and clearly we've seen a rise in the housing market as of late, so just about every home is appreciating, but it's it's not truly an investment, because it's where you live in the definition of an investment is when it accomplishes its purpose from an investment standpoint you'd sell it, move on to the next one. Well, that's just not how we approach our homes, we want to be wise about buying a home that we believe is good appreciate over time, but it's not purely an investment which these other properties are so I like the idea of you prioritizing the payoff of your home loan even at the expense of perhaps some additional interest that would be paid because when you have this paid off free and clear you own your home and you get the peace of mind in the security and the the flexibility if you will, of knowing that you have that home unencumbered and then we can look at these other properties just as we would evaluating any other investment or business are they working from a cash flow standpoint, you know, after you service the debt on them, which is an expense you would associate with the running of the business. What kind of income are you pulling off of it and then clearly your building equity over time. As you know, you pay it down whether their income generating or not. So I like the idea of you paying off that home feeling really good about that and then taking that extra money and using that to pay down the. The rental properties of the other investment properties as a secondary goal. The only exception to that would be if you and your husband really think and pray through that and you just don't have a conviction about being debt free. You're willing to take on a little bit more risk and it's more important to you just to save every possible dollar from a financial standpoint on the interest but apart from that, if it were me I would want to know my home was free and clear. First, does that make sense though where I'm having to struggle at it now and I will pay for it. What my whole entire problem is getting so damn that help a lot it really fair units of Fairpoint and and I would actually align with that quite well and and we all bring to the marriage relationship different money personalities different bands money was handled differently.

Growing up, you know, some tend to be spender something to be savers and a lot of that has to do with just how we've seen money handled and how God is wired us. But I think together, you will need to appreciate each other's perspective and I think prioritizing the whole mortgage even at the expense of a bit more interest. It is a pretty good idea. I can tell you this Teresa in all the years I've been doing this I've never had anybody call and say I paid off my mortgage last year and I've regretted it ever since.

I just never cut that phone call. I think you'll be delighted when you do that I Lord bless you and thank you for listening going today.

We appreciate it.

Well folks, you know, this is where the rubber meets the road because you know as we think about our role as stewards of God's money. It's not just about the money right, it's about what is God leading us to. How can we take his resources and steward them in a way that honors him and allows us to experience everything he has for us.

Remember money is a tool to accomplish God's purposes and it says will value it says where we placed our trust. How you handle it when you hold loosely to make sure the following is live on Rob last along with us today.

All the lines are false: right now you get a busy signal but sit back and enjoy the great questions coming up before we talk to rev go Daniel and Peggy, let me mention moneywise live is a ministry of money was media and Moody radio and we can all do what we do through your generous support.

So if you consider yourself a part of the moneywise family. Would you consider a financial gift, certainly beyond the giving you're doing your local church and after prayerful consideration if you decide you'd like to give to support our radio broadcasts and are moneywise coaches in our moneywise Alpine all the content we bring you on the web that we would certainly appreciate it just had over the moneywise live.org, click the donate button. We would certainly appreciate it, especially in these lean summer months as we try to meet our own budget month-to-month that we could certainly use your assistance again moneywise live.org just click the donate button. It's quick, easy and secure and we would be grateful back to the phones today Michigan. Peggy is calling and Peggy understand you have a question about well actually it sounds like you paid off your mortgage is out right absolutely yes I want to talk about because to encourage people to do that.

My husband and I got married in January 1986 we purchased a home at a price of $100,000 that was mark down 200,000 because of its high maintenance yard lights and stuff 10% interest. So we had 20% down, which meant we were mortgaging $80,000 at 10% it would've taken us 30 years we paid our house off my pain on the principle I got the amortization schedule to prove it at the trophy we paired off a little under four years I taking every extra cent that we could save input into what to do that if we hadn't my cousin passed away four years ago we hadn't done that only would've been paid off. The year before he passed, and it was the best thing and I'm still living here and it's the greatest security in the whole wide world and I would absolutely especially with the low interest rates now that would be easier to do and it was it's been incredibly knowing that we have the security of our home.

Yes. Will Peggy I so appreciate your testimony. I'm sorry to hear about your husband's passing, but I'm delighted to hear that by following biblical principles that put you in a position where after the Lord takes him home. You have the ability to continue to fund your lifestyle and having this home paid off free and clear. I'm sure is just been a huge blessing. How did you all do it. Did you just limit your lifestyle and take extra that you had each month and send it along with the payment did you send it out. We really didn't need all that much in terms of furnishing the stuffy because between him and we had everything we did have to buy a dining room set and stuff but we had one car.

We worked different shifts so we my car which was newer and that I gas mileage and stuff that we did that and he didn't like to go out to eat. Yet we didn't do that much and we just didn't do the frills and every extra stent went to that and well when we sacrifice in the short term for long term benefits because you all had a vision of being debt-free and unencumbered, which makes those short-term sacrifices just a bit easier. You reap the benefit and you been heating the Council of Scripture. These are the Lord's principles and he gets the credit for it and we appreciate you sharing the word of testimony today. I know Peggy, it's been an encouragement to many who been listening to what you shared today. Lord bless you. Thanks for listening and calling today.

We appreciated on to Chicago, Illinois Rafael, thank you for holding. How can I help user. All and all that great and we ate all wanted to know here limit set of high and I can we can invent over any tractor ration and I know I get programming on to creating retirement through the company so just pretty much that my question Rafael because you've obviously heated to counsel Scripture here as well.

You've been living modestly, you've been attacking dad and now you've got a lot to show for you are completely debt-free and I love the fact that even those rental properties are debt-free, which is good to be a huge blessing down the road you know as we think about this as stewards of God's resources.

You recognize folks were all the different places you know some of you listening right now are really struggling financially, and others have a surplus in the key is to find God's heart and plan for us to manage whatever we have, however much or however little for his glory and for his purposes, and you don't Rafael as you look at the five uses of money because there's only five things you can do with money you can spend it on your lifestyle. You can pay taxes, you can pay down debt. You can save it or you can give it on the great thing about what you're saying here is you've eliminated three of the bucket summing you're not paying any more debt that's gone five fuses of money are down to four done so if you want to increase your lifestyle that one's gone, the taxes get even better. You once we begin to give more but not to pay more taxes so really it comes down to just two uses of money is all that you have left. Do I want to give more or do I want to save more, or both, and then how do I decide where and when to do that and you know that's the beauty of being able to manage God's money this way is to be able to say, Lord, what would you have me to do and I like the idea Rafael of setting a financial finish line saying you know what, there's a point at which we've accumulated enough or were on track to accumulate enough so I would say do some planning with a certified kingdom advisor there in Chicago, particularly around retirement and any other savings goals. You have to determine how much is enough and then set up that retirement plan like a self IRA or a simple individual K to get that done and then safe and perhaps take a bit more money and put it away so you're on track with the rest you can Your lifestyle. You can Your balance sheet and begin to give Polaris that's the real way that we have. We get to this point so I do some planning, particularly around retirement and then make that decision on how much this smokes want to come is that everybody was live on Rob West. This is the program where God's word intersects with your financial life. So though I did hear from so many of you today. All the lines for the upcoming is the Joseph asking about getting rid of PMI.

Alyssa wanted to know when to pay off those Daniels debt-free looking to build a home want to know where to put the cash he's saving, but working to go next to us a ride if I said that correctly in Cleveland. We appreciate your call today. How can I help you as a writer you with this all right looks like we may have lost her momentarily. So let's move along at Daniel in Chattanooga, Tennessee Daniel, thank you for your patience. I can help user all the callers are debt-free and talking castaway right now. We got an savings account and I think would be better to put that money and mutual fund and DD or leaving yeah did you say you're looking to build a home. Is that right then you still with us. I believe we lost Daniel.

Let me just based on what he shared in the notes here for my producer debt-free and saving to build a home, I like the fact that you've got that in the savings account. Daniel, that's the place for it to be, you know, keep in mind with money. We are looking to deploy. I would say in on less than 10 years, certainly in less than five years. We don't have that invested because the others just too much risk there. Your focus with money that has that kind of time horizon is all about the return of capital, not the return on capital so you want to make sure the money is there when you need it so you can build that home-based on the right timing for your family and construction prices and when you're ready to dive into that when you've got enough saved so I would just simply say, even though you're not making a whole lot in the way of interest Daniel. I really like the idea of you parking that money in savings.

Assuming you're looking at a time horizon of I'm to say less than seven years. If that's the case, leave it right there. I like Ally Bank or Marcus or capital one 360 you get about half a percent right now. I expect that will go up over time. The good thing is, no fees, FDIC insurance up to 1/4 of $1 million per account holder and type of account and you can link it right at your checking account when you're ready, you'll know that it's there and if were in a recession a couple years from now. Not that I know we will be, but the markets and economies are cyclical, you won't have to worry about that money being down quite a bit and then feeling like you can't pull it out at that point. I hope that helps. We appreciate your call today but let's go to Illinois next Melissa, thank you for your call. How can I help you tell one yell at all and working part-time light of all. But I don't currently have your right and will and 30,000 count but very inconsequential interest rate.

So my question and with my allowing article hunger that I just got now. I think Elaine and Karen, don't forget or not you after graduation here.

Yes, very good to give me a rundown on the balances again Melissa, both of the student loans and the savings huddle around 19,009 Carol thinking like a lump 30,000 okay and how much do you think you'll take on an additional debt between now and graduation. Okay, great. And what are your plans after you get out of grad school and you would you expect to be able to find work and if so what kind of range from a income standpoint, would you expect predictable I can find and looking out. QI can't get the bat okay that's fine when here's the good thing and you you've capped it at 19,000 you're going to be all the way through grad school. The average student is graduating from undergraduate four-year college with over $30,000 in debt, you're getting through grad school. 19.

And even if you don't expect to be at the upper in a wage earning bracket you know with what you're seeking to do.

You know I don't have any reason to believe you shouldn't be able to pay this off in 10 years, which would be the goal 10 years or less.

Given that it's deferred right now. I wouldn't be focused on paying it down, but given that you had 30 you got 30,000 in savings. I would make sure you have at least 6 to 12 months expenses in the bank just given some of the uncertainty, and then at that point, I think you could feel free to begin to start to chip away at this so that you know perhaps you know what say you were to take as much is 10,000 and put it against this to get it down to 9000 and you have a much more manageable situation. You could even pay it down to 10,000, which which is what's being floated at the forgiveness of lease one of the scenarios so that you know you you've started into your getting this paid off completely, but you still got a good bit available for you to be able to get launched and cover your expenses, especially as you move out on your own and look to get a job so I wouldn't be focused on paying it all off right now, especially since it's deferred, but I think going ahead and systematically paying it down as you're able to but making sure you leave yourself with at least 6 to 12 months expenses make some sense gives you plenty of flexibility and is gonna put you in a situation where you're not having to rely on any kind of credit cards.

If you know something unexpected comes or you need to buy a car or something like that doesn't make sense. Okay, Melissa, God bless you. We appreciate your call today and great job.

It's saving up a good bit of money and getting through a grad school with minimal debt. That's quite an accomplishment quickly to Cleveland's right. I believe your back with us. How can I help you may call I get I want to make a purchase. So my question is would it be better to make the parquet and paying it off on a payment like me to come back next like credit card on it would be best to just think many of my saving adjustment. Yeah, the problem with that is you know so many of these big-box stores, including the one that I my note so you can be shopping at all for six months interest refinancing for home improvement projects over certain amount which sounds like a good deal. The challenges is after six months of you haven't paid it off you get hit with interest for the entire period, which could range from 18 to 27% and if you don't have the money available today, there's a decent likelihood, you won't have it available then.

So what I would prefer you to do as a writer is really just to limit your lifestyle go back to that spending plan, try to, you don't really look at every spending category C were you can cut back and try to create as much margin as possible so you can start putting that into a savings account so that once you built it up you can pay for the items in cash and you're not looking to get back into the situation where your borrowing, hoping to pay it off. Don't get hit with interest so I'm can ask you to delay if you can, and then let's see what the Lord because as you are diligent about some much more to come. Just around the corner. This is moneywise live with God's word section of your financial life. Spray calls just around the corner.

Stay with us.

Delighted to have you along with us today and moneywise live last phone lines are open got to perhaps one or two more calls today. Here's the number 800-525-7000 800-525-7000. We haven't taken in any emails today. We try to knock out to quickly. By the way, if you want to send us an email. We try to get to as many of them each week as we can on the air.

You can do that by emailing us at questions@moneywise.org questions@moneywise.org. Here's the first one from Sally and Jim were looking to buy our first home.

We know the housing market is incredibly high right now. Is this the wrong time to buy a boy I can really appreciate your concern there but clearly the housing market is a bit red hot right now. Interestingly, the latest data says that nationally, housing prices are about 5 1/2% overvalued that you might say really only 5 1/2% and and that really is the national average in terms of how overpriced they are primarily because this a rise in housing prices is driven by low interest rates historically low and real demand deal is millennial's look to buy their homes as they reach their 30s and their having kids that coupled with the many people now working remotely and having the ability to move out of small apartments to single-family homes combined with the fact that there is just not enough inventory. There's millions of homes less on the market than there is real demand for them and that's been pushing housing prices up now, given the incredible rise. We do expect will have a cooling of the housing market probably not any kind of crashing. There's not any systemic problems like we had in 2008 2009 with the housing crisis but it is certainly a cooling-off, perhaps even a dip. So what is that mean well, it means that we certainly need to follow the principles we typically follow, which is don't buy your home unless you've got a 20% down payment would set a minimum and then secondly, make sure that principal, interest, taxes and insurance payment is no more than 25% your take-home pay to start with but that doesn't replace really running it through your budget to make sure that it actually fits now I'm getting out of third one to that in light of the housing market, which is just simply make sure that if you're buying this home you plan to stay not just five years like we would typically say most experts are saying because of the housing increase the rise in prices is probably a good idea to think in terms of staying for 10 years. Just because if we see the housing market cool off, take a dip. You certainly don't find yourself in a position where you're losing money or it's upside down so appreciate your callers.

Give me your email. I hope that helps.

And again if you'd like to send us an email.

You can do so at questions@moneywise.org RI to lutes, Florida Amanda, thank you for your patience can help you Roth IRA David out $42,000 in economic growth. An American find average talk about Charles Schwab a lot and in looking at Charles Schwab and stock market that, but I didn't know that you Roth IRA you could put other thing I didn't just stock market participant like you can buy gold and silver. But cash yeah will you certainly can put casket that's a you make the contribution and with gold and silver you. You would typically buy that through what's called a tracking stock exchange traded fund, which just tracks the price of the underlying precious metal and rises and falls with the movement of gold you know there are ways to put other asset classes in IRAs, namely through what's called a self-directed IRA where you have to have a particular custodian but then you could even buy real estate inside your IRA, but I think you know as you guys are looking to build wealth for the long-term.

You've got a great start. Sounds like you got a young family heard that sweet little in the background 42,000, and a pair of IRA Roth IRAs. That's great. What you should be looking for is just good long-term performance with high quality investments American funds is a great fun family and you could find some great funds there I mentioned often Charles Schwab intelligent portfolios or betterment or the Vanguard advisor just for those folks were getting started in looking for a low-cost, diversified approach to investing where they're not trying to pick a particular mutual fund and in other kind counting on the success of one manager, but instead they're saying we just want to capture the broad moves of the market, which is what indexed ETF's.

Do we want to pay as little in fees as possible. And that's where these Robo advisors for folks and I would say, with investment open. Best of all assets of less than 100,000 really can shine and do quite well for you. So if you want to check that out as a comparison again. Schwab intelligent portfolios betterment 12 front Vanguard advisor, they'd all use indexed ETF's to give you a good cross-section of the market, international, domestic, small-cap, mid-cap, large-cap, even some bond exposure, but probably very little at what I believe is your young age and then you would just kinda capture the long-term moves of the market and you wouldn't be counting on a fund or even an individual stock which would make you two highly concentrated dissent make sense though Amanda liked Charles Schwab intelligent part of the layout.

I can't tell around the neck that on a good opportunity that I can IRA economic and trading at two that certain amount between Karen, that's exactly right. It's you not limited in the number of IRAs or accounts you have, as long as you don't in any one year exceed the end annual contribution limit so you could move, no portion of you can open a separate want to move a portion over or you know, as I said American funds is nothing wrong that's if you pick a good high-quality stock mutual fund from American funds. I think you could do quite well. The last resource. I'll give you is sound mind investing.org and they have a great strategy on investing through mutual funds.

That's real simple in its biblically-based sound mind investing.org.

I think you'd be real happy and looking at that as well.

We appreciate your call today. All the best to you guys as you continue to save for the future to a Miami Florida organ head south just a bit. Linda, thank you for your call. How can help you right now all I now think out in their and I also have the retirement fund. I'm looking at list about maybe a little about 600,000 and whatever and apply where to point where I should take the money out on the condo wicket now doubt that also kind of on line we Got the Boat but Will Be Handling My Retirement Fund That He Was Talking about, but I Wanted to My Retirement Money Great Coming Every Month Sure What to Make Sense How Far off Are You from Retirement.

Linda January Next Year. God Will Okay Very Good. Well Here Is the Thing You Obviously Prioritize Saving for the Future You Been Disciplined and That I Love the Fact That You Build up Quite a Bit of Money between the 457 Deferred Comp and the Other Retirement Account That You Have and I Love You Entering Retirement Debt-Free Including Your Home. You've Only Got 60,000 Left Gear Which Is Less Than 10% of the Investable Assets You Have for Retirement. So What Might Make Some Sense Is for You to Go Ahead and Pull That out over Two Tax Years.

Perhaps You Know One Half of It in 2021, One Half in 2022. It Would Be Added to Your Taxable Income.

So Make Sure You Plan for That but the Benefit Is That You Would Be Completely Debt-Free, Which Reduces Your Lifestyle Need the Monthly Expenses That You Have. Which Means You Need Less so You Be Pulling Less Out Of These Accounts Moving Forward on a Monthly Basis Because You Because You Said You Want to Create an Income Stream from the from These Accounts and Let the Investments Replenish What You're Taking out I Think That Would Be Great. The Key Is to Do Your Budget and See What You Need. Ideally, You'd Only Need about Your 4% of These Accounts Each Year. But If You Have Let's Say 715,000 and We Take out 60,000 over the Next Two Years You Still Have 655,000 If I Heard You Correctly, Which Would Throw off about 26,000 a Year and You Should Be Able to Replenish That with a Focus on an Income Portfolio.

So, If That. Plus Your Social Security Meet Your Expenses without the Mortgage Then You're Really Good Shape and You'd Still Have Access to the Money. If You Ever Needed It for Let's Say Long-Term Care or Medical Expenses, Something like That. As Far As an Investment Advisor Goes, I Would Be Not Necessarily Looking at Buying an Insurance Product like an Annuity for This I Be Looking for Somebody to Manage This Money with a Focus on Income and Capital Preservation and I Would Look for a Certified Kingdom Advisor There in Your Area There in South Florida. Just Go to Our Website Moneywise Live.org and Click Find a CK and I Hope after You Interviewed Two or Three You'll Find One That's a Great Fit but It Sounds like You're on the Right Track. I'm Excited for What God Has for You in This Next Season of Life.

Linda Be Prayerful about Where the Lord May Reassign You As You Transition Out Of Paid Work Because Remember Our Calling Doesn't Have an Expiration Date on It so We Want to Be in Service to the Lord throughout the Whole of Our Life, but That's Going to Change and Look Differently over Time, and so Your Job Is to Figure out What That's Gonna Look like in This Next Season and I Can't Wait to Hear What That Is.

Thanks for Your Call Today.

Well Folks, I Think That's Going to Do It for Us. It's Been A Lot Of Fun Today and We Started Today by Talking about the Benefits of Pain down Your Home Mortgage and How You Can Do That What It Looks like to Systematically Add Some Money to the Principal. We Talked about Paying down Student Loan Debt That We Talked about Thanksgiving Talked about Just a Whole Host of Issues and Here's a Great Part Is That in This 2600 Verses We Find in God's Word. We Find Principles We Can Apply to Our Financial Lives That Are Always Right, Is Relevant and They're Never Going to Change Moneywise Live Is a Partnership between the Radio and Moneywise Dan Anderson Solomon Producing Today. Mr. Jim Henry Providing Research Thanks to You for Listening to This Tomorrow.

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