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Catching Up on Retirement Savings

MoneyWise / Rob West and Steve Moore
The Truth Network Radio
June 11, 2021 8:03 am

Catching Up on Retirement Savings

MoneyWise / Rob West and Steve Moore

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June 11, 2021 8:03 am

As the economy continues to recover from the COVID pandemic, we’re getting a clearer picture of the damage caused by the shutdowns. One area that took a big hit is our retirement savings. On the next MoneyWise Live, host Rob West will explain that it’s time for those who stopped contributing to their retirement plans to start playing “catch up” with their investments. Then he’ll take your questions on the financial topics you’d like to discuss. That’s 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 K 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., Millville, 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 as the economy continues to recover from the covert pandemics were getting a clear picture of the damage caused by the shutdowns. One area that took up big hit retirement sayings.

I am Rob West, millions of workers lost hours in income over the last 18 months and many stopped contributing to their retirement plans, but now it's time to play catch up. Talk about that first today that it's on your calls, that 800-525-7000 800-525-7000.

This is moneywise live biblical wisdom meets today's financial decision. Okay so just how big practice cove. It had on carbon savings. One survey shows that more than one out of four workers reduced retirement contributions or stop them completely. Worse 10% of workers took money out of their 401(k)s and IRAs to replace lost income further setting back their retirement. On top of all of that many companies that reduced or suspended matching contributions have yet to reinstate them. So if your retirement savings have taken a hit this past year.

Here are some steps you can take to catch up heart first start tracking your total spending.

People often ask how much will I need to retire they should first ask how much of my spending right now most people have no idea how much they spend annually and it would probably shock them by tracking your spending for at least three months and that means every penny. You'll get a good idea of where your money's going and why more of it isn't going into your retirement plan you need to get out a budget that cuts back on discretionary spending and freeze up more for retirement savings. Next, don't forget about health insurance that might seem unrelated to retirement savings, but there's a connection if you've lost health insurance due to cove it you might think you can go without it for a while, but you shouldn't. If you're hit with a big medical bill you may be tempted to take money out of your retirement plan a medical cost sharing offers a low-cost alternative to health insurance and we recommend you check out Christian healthcare ministries there an underwriter here in moneywise live you'll find them@chministries.org okay next EU should take advantage of catch up contributions to your retirement plan.

You see, once you reach age 50.

The iris throws you a savings, bone, allowing you to make extra contributions how much though, depends on the type of plan so that for a 401(k), 403B 457 plan. You can contribute an extra $6500 annually after age 50. If you have a symbol that's the savings incentive match plan for employees. It's a simple IRA or 401(k). The catch up contribution is $3000 annually, and for a Roth IRA. It's an extra thousand again over the age of 50. Now the next step is to automate your savings. Make sure you're signed up for automatic payroll contributions that will get for you all matching employer contributions if it all possible, try to reach her annual contribution limit of 19,500 or again 26,000 if you're 50 or older.

Obviously that's a high bar to reach and not everyone can do it. But remember, every penny you cut from discretionary spending is money you can put in your retirement account. Your next retirement catch up step, though, is to take a hard look at your portfolio.

You'll have to have a good portion of your savings in the stock market to have any hope of reaching your goal. Money markets are only yielding around .6% less than inflation. On the other hand, the S&P 500 is averaged a 10% annual return going back decades. Of course, you can lose money in stocks, but the market always recovers over time.

If you have at least 10 years before retiring. You can afford to put the majority of your portfolio into stocks. The last step to shoring up your retirement is something most folks don't want to think about, but it would have a major positive impact and that simply retiring later. The longer you delay retirement. The more time you have to contribute to your plan, building up your next day. It also increases Social Security benefits if you delay taking them past your full retirement age now 66 or 67 for most Americans, you can earn any amount of money without having benefits cut. Plus, you gain an extra 8% in benefits every year you delay taking them up to age 70.

So whether your retirement plan took a hit from co-visitor came through unscathed.

These steps will help you put away more dollars in the time you have left before retiring. One quick note if you depleted your emergency savings or you stop giving those are the priority. Any additional money you find in your budget. Let's restock the emergency fund. Let's restart or giving them time comes next. All right your calls just around the corner 800-525-7000. That's 800-525-7000 am Rob West and this is moneywise live biblical wisdom meets today's financial decision.

Thanks for joining us today. I moneywise live for God's word is intersects with your financial decisions and choices were taking your calls and questions today just a moment.

800-525-7000. We have some lines open. Would love to hear from you.

800-525-7000 is a number to call what we started today by talking about retirement, specifically of the impact of the covert pandemic on retirement savings. As many companies navigating the pandemic cut back on their matching or eliminated altogether or as many as one in four Americans that actually reduced retirement contributions or stop them completely because of the impact of COBIT and you know any time we talk about retirement.

We have to look at it like we do everything on this program through biblical lands and recognize we should approach this idea of retirement, not the way the culture does necessarily that we should just accumulate as much as we can so we can live a life of leisure. Now there's nothing wrong with slowing down in that season of life. But what we recognize as believers, is that the modern idea of retirement is not found in God's word are calling extends throughout the whole of our life. What is God to have you here for what you to accomplish and what is that look like in various seasons. Now you may come to a place in most will where you are not able to work or not want to be able to slow down in your ability to save for the future is critical to being able to continue to find your lifestyle so you can use your wisdom and abilities which arguably are the greatest and that retirement season of life. For God's glory until he calls you home so I think we need to approach it differently in terms of the why of retirement, but also of the how related to specifically the finances and I think for all of us. We need to start by defining ourselves on our knees. Recognizing God owns it all. Where the steward and were to ask the Lord what would you have me or as a married couple us to do with your money. What lifestyle you are calling as to how much should we be spending how much should we be keeping for ourselves and what should we be saving for the future and perhaps most certainly what should we be giving putting back into circulation in God's economy. That's a conversation that happens throughout your life, but it's a critical conversation as it relates to retirement how much is enough in terms of accumulation. It's not about the mindless accumulation of wealth so we can just build bigger barns. We clearly see that is frowned upon in Scripture it's really about saving for provision to provide what we also want to be giving throughout our life and I believe we should have a financial finish line, both in terms of lifestyle, as well as our balance sheet are accumulation so that affects both our income and our savings and I think you know for most of us, we need to sit down with a financial advisor. I'd recommend a certified kingdom advisor that can help you do that planning to save what is enough for us and what is it going to take in terms of monthly savings to get there and then beyond that amount. How can I give even more so. Perhaps this is an opportunity for you to think about setting a financial finish line.

And by the way, if you'd like to talk more about how that relates to your situation. Give us a call today 800-525-7000 were going to begin today in Illinois actually on the topic of retirement of Bruce thank you for going out to help you Greg, but I'm IN Illinois. I called retirement and I call this or don't let that I'm looking for your advice. I'm 65 years old and I'll be 66 in August of this year and I have a small pension that I was blessed to be able to have from a company that I worked for years ago and the pension at the different options when you can take it, I could've taken it last year.

September 1 when I turned 65. I chose not to. And I just was wondering if you have the work to the map to see what makes sense think that maybe I should take it now or what I thought I get your advice and I'd be delighted to tell me the details short so it with Marquette unit. It last year. I would've taken it on my actual route 65th date. It would've been $435 a month by waiting, it goes up every month by a small amount but currently if I took it.

Right now, would it be like $478 a month at exactly that. That was August of that year I waited talk to ships four and 78 and another milestone might be if I waited on next March 1 be $501 a month immediately to my first next February my wife turned 55 and we were thinking about the Medicare ramifications as well. Yes, okay, very good. And did you see you already are retired at this point I don't know I'm I'm still working full time, but have a good job that he talks to working full time and and night might. My goal was marveling at retire, probably next next February which would make out. I'm 66 and two years two months would make me fully terminate the next February my wife turned 65 zero Planning around that it backstage okay very good and have you done your retirement budget Bruce so when you get to that point, you have an understanding of what it will take to find your lifestyle yet. I think we we look at now, thankfully, another Christian advisor two years ago Larry Burket resonated with us and I thought it just instructs back that we got we got that pre-great all right so so we could, we can probably be able to go into retirement with no with a minimum automobile you have anything extravagant.

So we've already figured it out. It only with a little note with a pretty good budget okay and so you're going to be counting on those that point, Social Security plus, the small pensions have any other income sources are retirement assets we have. I like has an IRA and a lot and I have a 401(k), IRA, a lot stating okay are you very good yeah yeah I think him.

It sounds like you're in a great spot you've kept your lifestyle in a minimum I love that you heated the Council Scripture vis--vis Larry Burket who was one of the pioneers in bringing God's word to bear in modern personal-finance in and still is having a huge impact today. It's amazing how God used Larry and continues to use them even after he passed in 03 and so because of that you've applied these principles here in a great spot and I think you know as to win the right time is to take the pension is just going to be a function of a couple of things number one comparing your need to the income sources you can have at various points and then to the extent you have enough and you don't have a need for the pension looking at the growth rate of that pension. The internal rate of return that you would get versus waiting and letting that continue to grow and then comparing that to reasonable expectations in the market just to see the open. If you don't need the money and it's guaranteed to grow deal then obviously there's gonna be a period of time where you'll have to make up what you were collecting for that year or two, but beyond that, you will then enjoy that higher payout every month for the rest of your life and hopefully with survivors benefits for your spouse you I think that's really the thing to look at and that's good to be a function of how healthy are you, we don't know how long you have here.

None of us do, but if you're healthy you believe that you've got to quite a bit of time at Lord willing, then you know obviously you if that money is unnecessary. It's really just to be a function of can I do better by taking that money and let's say investing it or should I just let it grow in the pension and you know that's really going to come down to matching up those various income sources you have that you can count on to the budget need as to determine the timing of when you start collecting both Social Security as well as the annuity and how you handle those other retirement assets in terms of pulling income off of them. Based on the investment strategy that's deployed so as long as your talking to your financial advisor about all of that to look at you don't do my good you better waiting on Social Security versus the annuity is my or my investments in invested properly based on what were expecting, with probably a slower growing stock market over the next five years, you know, I think you put all of those together and then make some decisions at that point.

Does that make sense so it doesn't it.thank you. I just think that might be making something that was that. Obviously, in my mind to it at the state being that close to what you might consider retirement age should I itself and I don't have a lot of risk, I would want to put all my money in stock market and risk losing 40% of the unique years of time to get that money back when we go through cycles with some am I getting close to retirement to be taken at risk. Well I yeah I wouldn't be at this stage 100% invested in stocks. For sure, because I think you would need to be willing to, whether about a 35% pullback is based on historical norms. If we were to get into a recession work that we saw significant Daubert market that lasted for a period of time now.

Typically it will recover. It always hasn't, but it does you said it's gonna take some time and that's why you'd want to perhaps take some your risk off by diversifying away from stocks reducing that stock exposure so that you don't have a portion that's invested in stocks because remember this money if the Lord tarries and you have good health needs. The last for a couple of decades or more of that stock portion is can be the growth engine but you do it in such a way that while that part is down.

If we got into a season like that you like a touch it, and it can have that 10 year plus time horizon, you'd be pulling income off of the fixed income type of investments which have their own challenges in a rising interest rate environment, but that's where I think that the planning of an advisor could come into bear here so you know I feel like you have all the pieces spruce you've thought through this. You've done the hard you made the hard decisions along the way to limit lifestyle and pay down debt. All of that is good.

Now it's just a matter of timing and I think as you lean into your advisor to run some calculations on what can be best in terms of the timing from Social Security and pension and what is the right investment mix for your other assets certainly reducing risk now heading in retirement is.

Thanks for your call is much more to come back moneywise live taking your calls and questions today on anything financial, here's the number 800-525-7000. That's 800-525-7000 at the open of the program. Today we were talking about the impact of coded the pandemic on retirement savings and we said really there's some key steps you can take to lean into your retirement if you perhaps cut back. Are you feeling like you're a bit behind and wanting to catch up and step number one is to begin tracking your total spending, it's critical to understand where God's money is going every month and unless you're tracking it, I guarantee you there's money that slipping through the cracks that you're not aware of but getting control of the flow of money in and out is really critical to being able to increase the amount of margin that you have by cutting back on discretionary spending that margin is really essential to being able to add to your retirement savings because that's money, that's not going out of the form of fixed or discretionary spending and can be contributed to a retirement account so take a look at that and by the way, if you need some help with that.

There's two options you could avail yourself of number one is her moneywise at one of the key parts of the moneywise app is our digital envelope system where you can connect all of your institution set up your spending plan using the tried-and-true envelope approach download everything automatically and always know where you stand with each envelope throughout the month.

You and your spouse can share the same account and see that in real time just downloaded in the app store today. Search for moneywise biblical finance. It's also in the Google play store search for again moneywise biblical finance.

You can also avail yourself of our moneywise coaches there, ready to serve you have a whole new group. It's just been trained. These are volunteers that really see their ministry is walking alongside God's people in this area of spending and saving and giving and that they be delighted to serve you just said to our website moneywise live.org and click connect with the coach and will get you in line to have a coach serve you back to the phones today lines open 800-525-7000. Clark is in Chicago.

Thank you for your patience Patience, sir. I may help you.

Hey Rob, thanks for taking my call. After soaking my wife bought a vehicle new vehicle couple years ago and we financed $12,000 and I was under the assumption that I that we can pay the vehicle off early and not have to pay all the interest on it all. I called the company that holds the loan and it shows that there's a finance fee that tacked onto the loan I have to pay the whole finance fee. I guess my question is should I pay it off.

The whole thing off now or should I just make the monthly payments since I'm not can be saving any money, interest, lies down any extra interest. Well, I can imagine your frustration when you learn that if you didn't realize that's what you had going in and it sounds like you have a loan with what's called precomputed interest and not a simple interest loan whereby when you pay down the balance it reduces the amount of interest owed based on the outstanding balance that remains. If that's the case your interest as you said would be calculated up front at the start of the loan in the amount of interest you pay is considered fixed so it really doesn't offer you any benefit to pay it off early because you're still responsible for the full interest on the loan. So if you have to pay 2500 and interested you doesn't matter if you pay that off early. So what I would probably do is just set that money aside in a separate savings account if you don't have one open account with outlier markets or capital one 360 where you can have a separate savings account without any fees, maintenance fees specifically for that car payment. Perhaps you can set up an automated payment right out of savings to the lender and at least you're going to earn a little bit interest on that money by keeping it in the bank and you hang on to your money.

If for some reason you needed it for some other purpose but that way in a sense it's paid off because the monies already there but you're not trying to save money because you can with precomputed interest. It's already been determined. Does that make sense so that God is so much okay. We appreciate your call. Thanks for listening today. By the way I stand a lot of us enjoy great book called master money from Ron that I think will be an encouragement to it as you and your bride try to manage God's money.

Well try to pay off debts and try to give generously as our gift to give us a master money. Just hold on just a moment so pause for a brief break we come back many more calls from Cleveland, Illinois, also as well. Look forward to hearing from you. 800 525 delighted to have you along with us today and moneywise live God's word intersection your financial life taking your calls and questions and 800-525-7000. Let's get right back to phones Jason is included in Tennessee today. Jason, I can help you appreciate it is her 43 years old through the month and think of some of the best way to get my return do have 401(k) at my work. My wife does as well and the plane around look like money market at that had some handsome you very small returns on but it's like you don't get look at them all individually and said all the different filters and other stuff spoke with the best way to do to get to get some higher-yielding returns for my retirement sure and so you're talking specifically about a 401(k) where you'd have to choose among the limited investment choices inside the 401(k) are you talking about with another type of retirement account in the form okay yeah well you know we look into investing and clearly the idea of investing is supported in Scripture were to take care what God has entrusted to us in a portion of that is for obviously giving back to the Lord and God's economy proportion is to provide for our families and that can be an endless list of needs and wants. We have to be careful there is to asking the Lord what kind of lifestyle he wants us to live and then a portion I believe of what God gives us today is for the future were to say, we see that modeled in Scripture and will is well. That's clear in Proverbs and so as we set aside for the future.

Then we depending on our time horizon should absolutely be seeking a good return on that money and so for money that I would say is for a 10 year time horizon or longer should be invested in the stock and bond market has been the most consistent place over the last hundred years to build wealth doesn't require you to do a lot of hands-on activity, like for instance being ill having tenant to know piece of real estate that's more passive and historical performance is very good now.

The key is that were properly diversified, though Jason and I don't think we should seek a get-rich-quick strategy. The problem is you and we hear about a lot of these highflying stocks coming lately that's been summoned that the Tesla stock soar in old things in the crypto currency space and then we had this whole read it thing that's been going on and you know I would say these are really more speculative type investments, and although it's exciting to hear about some of the returns folks have gotten you not hearing as many of the stories that are actually there about those who have lost significant sum amounts of money because they took too much risk and they were highly concentrated and they didn't take a kind of a slow and steady steady plotting.

The Bible calls it approach to investing. I think that's really the approach with your long-term money.

Recognizing your steward managing God's money, not yours. So you know what I would do is say based on your age and risk tolerance, which obviously you're still a young guy you've got time on your side you at least 20 years, perhaps more, before your retiring.

You can be fairly aggressive. What I would do that within the investment choices that are there in the 401(k).

Obviously, I don't know what those are, but you gonna want to be highly concentrated toward stock mutual funds. You can do that in one of two ways. One is you could use more of the indexed approach to spend every 401(k) will have an index type investment where you can be indexed to certain market indexes that capture the broad moves of the market. You can use a lifestyle fund which is really tied to your retirement. Expected retirement date and then it automatically gets more conservative.

Over time, or you can use more of an actively managed fund where you have a money manager who's trying to beat the index is using his or her skill or expertise in a particular sector of the market based on the prospectus the defines, the rules of the game for that particular investment pool and as to what's the right one for you again Juergen want to be on the more aggressive, more stock oriented side of the investment options but as to the specific ones you could either get to research those and make that decision yourself or I think it probably be worth the your while to spend some time with an advisor who can really look over the investments in the plan, and perhaps once a year twice a year help you tweak those allocations so that your maximizing you what you have in there not taking unnecessary risk, but also making sure you're not too conservative and you can absolutely do that without paying an ongoing fee it would really be a flat fee probably based on the amount of time that professional needs to help look over those investment options and then help you make your selections does all that make sense so yeah very very good. I appreciate that so much that not now know that direction ready to go and thank you so much. Excellent ally would again just encourage you get some outside counsel. Every 401(k) is different in terms of the investment options in there and the key is one of the right ones for you to make sure you don't have an unnecessary duplication you've got the right mix but you also are taking the appropriate level of risk consistent with your age risk tolerance goals and objectives.

I hope that's helpful to my friend. We appreciate your call. Heading next to Illinois. Tyler thank you for your call today sir, how can help you. So my question is coming from the foundation of understanding Christian sales in real thing. A good thing.

And God ordained Christian sales would you say or have any wisdom for someone who is working for, not a Christian employer in a worldly, sales role like success in the company but not have to be strongly committed to work in there, but it's just sometimes be very draining the amount of emphasis on money money money money trying to get more money. Well first of all, I appreciate you recognizing that Tyler and yet I think you have an incredible opportunity.

But as long as the company you know the primary business activity is not something that violates your convictions and your biblical values, and I think you can have an incredible influence in the marketplace. You know, we go back to Scripture it says six days you shall work in the Hebrew word for work is the.well what's interesting is when you look at the meaning of that word.

It actually has multiple meanings.

One of which is work, but the other is worship and this idea that we can worship God while doing our work is actually embedded in the name of the Hebrew word for work. So from the very beginning we were to be workers, but even before the fall of man.

It was referred to as a gift. In Genesis 2 and Ecclesiastes 5 and we were commanded to work in second Thessalonians 3 yelled different forms of worker mentioned more than 800 times in the Bible, but I think the idea is that it's a unique platform or a pulpit to leverage your influence for God's kingdom that can be directly proselytizing when it's appropriate when the Lord allows but perhaps more often than that. It's gonna look like you just you know being an expression of what the Lord would have you to do in terms of acting with incredible integrity and showing that respect and concern for others and just being somebody that over time people want to seek out for your wisdom and perhaps through relational evangelism even give you the opportunity to share Jesus with them that maybe off-hours I keep in mind that when Jesus called the 12 disciples, many of them owned and operated business and businesses as tradesmen and commercial fishermen. Jesus spent a good bit of his time in the marketplace as well. So I think he is just to be praying for you opportunities your hand and feet and don't get caught up in the cultural messages about more money you're serving an audience of one. That's the Lord himself and go to work every day during ministry. My friends and the good work and that we appreciate you going moneywise like to set were grateful you've chosen to spend some time with us today. I moneywise live on novelistic calls and questions would you like a financial professional who understands accounts in Scripture, especially to bring biblically wise financial advice. In addition to meeting high character training and experience in regulatory requirements. Well, that's why we recommend a certified kingdom advisor designation. It's the gold standard in terms of biblically aligned professional financial advice, and you can search for a CK certified kingdom advisor in your area when you visit our website moneywise live.org just click find a CK, I'd encourage you to interview two or three if you're looking for an advisor and financial planning, investments, tax and accounting, insurance, or estate planning again moneywise live.org just click find CK back to the phones Aurora, Illinois, wrote a thank you for your patience today.

How can I help you, crying might desire, encouraging us to vet and stock market went light date date patents on stock and like Amazon and Bell Canada Stockton. I was wondering, I only want to do like $200-$500 and what your recommendations are okay Rhoda, do you what season of life are you and are you working are you retired, I'm still working seven years in retirement seven years okay very good.

And do you have a retirement account that you're saving in at work. It okay do you feel like you're on track with what you need to save for retirement or you bit behind on track or contracting. And so this would really just be some extra money beyond what you're already doing in your primary retirement accounts right right okay do you have a time horizon for when you'd like to be able to access this money I mean is this long term money. Perhaps seven years plus before you would want to pull it out and Society unit that you okay yeah I'd like for it to be more on the seven year range yelled, typically with five years.

I would encourage you to put it in the market but I think you got a couple of options. Your number one is if you have two to $400 a month. This neo-surplus.

It's not allocated somewhere else. That's a great way to invest because you automate your investments and by doing so, you're doing something called dollar cost averaging. When you buy into the various investment you choose will talk about that in a moment you're buying it at different points of markets can be up and down every day and certainly over the long haul and every time you buy in. If the markets down by more shares of whatever the investment is with the same amount of money the markets up you're buying less years, but it all evens out and then over time you capture the broad moves the market now I'm to push back on one idea that your kids floated and that is you know their particular there picking out individual stocks and you're trying to put money into an individual company banking on the idea that this company's gonna rise in value and outpace the market and it sounds like they're focused on the technology sector which has been a standout for the last couple years, and even before that anywhere in the 12+ years and will bull market.

We've seen incredible run ups in the technology space. I would argue it's overvalued and I think as a manager of God's money, even at 200 a month.

I don't want to be speculative in my investing trying to pick winners and losers and jump in and out of the market. I'd rather you put something in a more diversified slow and steady type approach. We're just gonna capture the broad moves in the market over the next seven years and have you know all of the contributions each month plus. Ideally, you'd be no get somewhere between seven and 9% over the 10 year period, annualized, which would mean you'd get some good growth out of it as well.

So to last things.

One is the type of account. What I would encourage you to do is put it into a traditional IRA can put that if you're over the age of 50 could put in 7000 this year and each year following and it changes typically cheer the contribution limit and if you're married, your husband could do the same thing that's going to be a tax deduction. When the money goes in, and if you think in 2 to 300 a month. You can easily do that because that's can be under the contribution limit as to the type of account skews me the type of investments in the account I would encourage you look at one of the Robo advisors because of what the amount of money were talking here there to be very low cost there to be very broadly diversified, not picking winners and losers like Amazon and companies like that. But where your indexed to the market so you might have 500 investments in the index as opposed one.

So you're not just relying on that quarter's performance of a particular company and the Robo advisors I'd encourage you to look at, which are very easy to use again very inexpensive great great way to get going, would be the Vanguard advisor. The Schwab intelligent portfolios or betterment Vanguard advisor Schwab intelligent portfolios and betterment. So that's can be a great way to go. You can open it quickly online or a smart phone app you can set up an automatic contribution each month and the net monies can be deployed for you. It will be rebalanced. So every time you make a new deposit every month. It will automatically be reinvested in the whole portfolio we be rebalanced and there's no transaction costs for any of that. So I would check that out. It perhaps isn't exactly what your kids were saying, but I think you'll be happier with it over the long haul and you won't have the wild fluctuations they really get if you to go into one particular stock. We appreciate your call today. I Terry is in Cleveland, Ohio Terry, how can I help you tonight. Thanks for taking my call. Clearly okay yes ma'am on behalf of Mike Dr. unfortunately someone her car and it ended up being totaled out the car was I think a 2000 or so it would pay or my sister is in her early 70 even retired and I think she got around 5000 or 6000 on the totaled car. She doesn't do much driving but she's looking at either purchasing a used vehicle or leasing and she's leaning toward lease thinking you discussed the advantages and disadvantages of that and maybe put her on the path of Sheesh. At least, or actually try to purchase a used reliable vehicle. Yeah well I appreciate your guidance in coming alongside her as she makes this decision. Then I can certainly appreciate what she's weighing here, I can tell you though I'm not a big fan of leasing you know it's expensive in the long run. Keep in mind when you lease your basically paying for the use of the vehicle for the first few years of its life. When the car depreciates the most. So when your lease is over.

You have to either lease another want to purchase one. Either way, you can have monthly payments for a long long time versus where is when you purchase a car, you essentially drive it payment free after you paid off the loans you've got limited mileage, although that's not to be an issue here for her because she doesn't drive very much the insurance cost is a bit higher. Most leasing companies require a higher leverage level of insurance coverage on the vehicle which makes it more expensing more expensive and there are lots of fees so you know you'll often pay an acquisition fee dispose disposition fee at the end. In addition to excessive wear and tear fees. You could be liable for, so I and I just think it's overall more expensive way to go, which makes it not my first choice. On the contrary, what I would do is take that money you look for perhaps you could help her look for a good reliable used car if she's willing to take on a monthly payment beyond what she's been paid out from the totaling of her previous car, then you will figure out what fits into your budget but you're going to buy something where the depreciation or lease the bulk of it has already occurred. You can do your homework. I would always have it checked out within an independent mechanic and that way once it's paid off if she could continue to drive it for a long long time and get out of the monthly payment, game design help will I thank you very much. I will share the information with her. And like you said walk alongside her to help her and that they can. Thank you for taking my call. You're welcome Terry appreciate you listening and calling today. God bless you our final color of the day is going to be Colleen in Tampa Florida.

Colleen, how can I help you. How are you think that you can make sure okay so where were at now is my head may not. He just retired from the Air Force at 37 years.

He turned to the next next year. I now 37 years at craving. I so I-9 now and seems like work trying to work honey were trying to make sure that we have a very good looking portfolio meaning we have at their savings plan. Obviously he didn't go back into federal service.

Obviously not active militaries retired the federal service job where she can't cancel a thing. I don't know the rule or what you have to take on it a turning age for your campaign when your military going yes well I see is the accounts can be rolled over into an IRA or another employer's retirement account and then you'll have a required minimum distribution it at some point all okay and then the other thing.

What I think earlier about 25 and pick out something with talking about. At the very tail end about the survivor benefit and again you know when I have a crystal ball. He's pretty healthy except for a couple little you know Dean is a long going on from the appointment.

Nothing. But all that then we were talking up the GLI so it's just it seemed like if were in at a ring of sorts have some in boxing. We got the survivor benefit when fighting the GLI on the other not to think, and I knew you only get 55% female and if he were to pass the checks keep coming but when you do have the GLI you dictate one month, I think I figured out but then I don't think I have a cigarette if they don't know what that yeah well I think there's enough going on here when you see the GLI for the benefit of her listeners. That's the veterans group life insurance or you can keep your life insurance after you leave the military for as long as you'd like but I think what you need to do. Colleen is connect with an advisor who can really go over all the details. Look at the military retirement. If you have any other options and compare that to your lifestyle is down the line I'll help you get connected with CK and answer some of questions fortunately are out of time. Appreciate your call finalize lot as a partnership between Moody radio and moneywise media was a thank you my team today. Deb, Dan, Eric and Jim, thank you for listening back tomorrow. Well actually Monday to do it all again. Have a great weekend in the meantime, will you


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