Managing Loved One’s Finances After Death

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In most cases, the answer is no, but not always. Hi, I'm Rob West. Would you know how to manage a family member's accounts after death?

There's actually quite a bit to it. I'll talk about that first today, then it's on to your calls at 800-525-7000. Call it 24 7 800-525-7000. This is MoneyWise Live, biblical wisdom for your financial journey. So one of the first things you may be surprised to learn is that when someone passes away, their credit reports aren't frozen or closed automatically. The estate's executor or personal representative will have to do that. And it's very important to close credit reports because the deceased could still be the victim of identity theft.

It may even be more likely after death. So you need to have a death notice placed on the deceased credit reports. Often the surviving spouse will be the executor or personal representative.

But even when that's not the case, the surviving spouse needs to work with the executor to make sure the right steps are taken to manage the deceased's accounts. First, you should know that if your loved one died with debt, the estate is responsible for it. If the estate lacks the funds to repay it, no one else is obligated to pay it usually.

There are a few exceptions. For example, if you co-signed a credit card or other type of credit account with the deceased, that account is also in your name and you're legally obligated to repay the debt. Also, if you had a joint credit account with the deceased, meaning it's in both your names, you're obligated to repay. But you're not obligated if you're only listed as an authorized user. Now, all of that goes out the window if you live in a community property state where you'll generally be required to repay some or all of your deceased loved one's debts.

Those states include Arizona, Louisiana, California, Idaho, New Mexico, Nevada, Texas, Wisconsin, and Washington. And one more instance where the surviving spouse might be responsible for the deceased spouse's debt, where state laws require you to repay certain types of debts such as medical expenses or debts related to a jointly owned home. Of course, if the deceased's estate has the funds to repay his or her debts, you shouldn't stand in the way of that, but rather facilitate it however you can.

Proverbs 3 27 comes to mind, do not withhold good from those to whom it is due when it is in your power to do it. But even in cases where you're not obligated to repay a loved one's debts, you may feel responsible for it. If you feel God leading you in that direction and you have the funds to repay the debt, by all means do so.

After careful consideration and prayer. Also, you may be contacted by debt collectors concerning your loved one's outstanding accounts. If that happens, first confirm that the debt is actually owed. Then if the estate has the funds, you can repay the debt, make sure you get a receipt, or you can refer the collector to the probate court, overseeing execution of the will. Either way, the estate will be responsible for the debt. If you continue to be harassed by debt collectors, you can block debt collectors from contacting you by sending a letter demanding they stop contacting you. If collectors continue, they're in violation of federal law and you can report them to the Federal Trade Commission at ftc.gov.

However, keep in mind that won't eliminate debt that's legitimately owed. Earlier, I mentioned that credit reports aren't automatically closed when a person dies. The executor or personal representative, often the surviving spouse, has to make that happen by notifying the credit bureaus Equifax, TransUnion, and Experian.

They will then seal those reports and place a death notice on them. There are three steps to notifying a credit bureau about a loved one's death. First, contact the bureau to find out what documentation you'll need to submit. Generally, this is the deceased's legal name, social security number, date of birth, birth, and death, a copy of the death certificate, and perhaps other legal documents. Once you've gathered those papers, submit them to the credit bureau.

Make sure to keep copies for yourself. The bureau will then freeze the deceased's credit and prevent anyone from opening new accounts. Also, the bureau you contact will automatically notify the other two, so you only have to do this process once. Finally, you'll want to review the deceased's credit reports so you're sure about all open accounts with creditors and lenders.

You'll want to do that with all three credit bureaus because they might not list every account. So, now you know what's needed to manage a loved one's credit accounts after death. Your calls are next on our 24-7 line. It's 800-525-7000.

That's 800-525-7000. This is MoneyWise Live, biblical wisdom for your financial journey. We're delighted you've joined us today for MoneyWise Live. I'm Rob West, taking your calls and questions on anything financial, applying biblical wisdom to today's decisions and choices financially. Here's the number, 800-525-7000.

We have just a couple of lines remaining, 800-525-7000. By the way, let me just encourage you, if you consider yourself a part of the MoneyWise Live community and you've not yet contributed to the program, we'd like to invite you to become a financial partner. We can only do what we do through your generous support. If you'd like to give beyond, of course, the giving to your local church, we'd encourage you to do that online simply and easily at MoneyWiseLive.org. Just click the donate button and everything you give goes toward keeping this program on the air, plus all of the other ministry offerings we have at MoneyWise Media. We would certainly be grateful. Again, MoneyWiseLive.org, click the donate button. All right, we're going to begin with our phone calls today. We're going to start in my hometown, Fort Lauderdale, Florida, WKES. Winston, thank you for your call today.

Sir, how can I help you? Yes, good afternoon. What is your opinion on a reverse mortgage? I think I understand reverse mortgage, but I would like to hear your opinion on it.

Yes, I appreciate you asking. Obviously, it can provide some extra income in the retirement season of life if you're 62 years of age or older and have enough equity in the home. It's not my favorite tool just because generally speaking, I don't like using debt to fund your lifestyle.

I'd rather you stay unencumbered, perhaps downsizing or using other means to lessen the expenses that you have on a monthly basis and get yourself in a situation where you can fund lifestyle out of other income opportunities, be it social security or taking an income from investments, retirement accounts, things like that. The primary downsides, Winston, in my view, other than just the notion of funding lifestyle with debt, is that first of all, the fees are typically very high. The embedded interest rate, even though you're not making a payment, they're actually paying you systematically every month out of your equity. There is obviously an interest rate involved, not to mention a good many fees that are embedded in these programs, and they are higher than the prevailing rates and the fees are considerable.

And so there is quite a bit of expense there. Obviously, if you want to leave home to heirs, they'd have to pay off the reverse mortgage balance when they inherited the home. And then, of course, you've got to stay in the home or satisfy the note. And of course, you've got to maintain the home as well as the taxes and insurance. So, you know, it is certainly an option if you find yourself in a situation where you're short every month and you want to tap into that and you want to tap into that home equity to cover that.

It is a way to convert an asset, which is what your home equity is, to an income stream. I just prefer that not to be the first choice for the reasons that I mentioned. Does that make sense, though?

Makes a lot of sense. And, you know, that's on the line that I'm thinking also, you know, but I just like, you know, I'm 79 right now. My wife is 80. We have 100 percent equity.

We do have some savings, but I'm just looking down the road and making sure that knowledge abodes and know what my options are. Very good, Winston. Well, you sound like somebody who's very thoughtful, and clearly the Lord will honor your diligence as you're a careful steward of his resources. We appreciate you thinking of us and calling today. May the Lord bless you, sir.

On to Shorewood, Illinois. Nancy, thank you for your call today. How can I help you? Oh, thank you so much. Thank you for helping us to be better stewards, better, wiser stewards of God's money.

I heard your intro, which was very interesting. My mother was on Medicaid. She passed away about a year and a half ago, and my question is whether I should look into those credit bureaus for her as well. That is one thing that I have not done.

I have not gotten any credit statements in her name or anything for years, but is that still something that I should do? Yeah. Were you the executor of the estate? Yes.

Okay. Yeah, it doesn't hurt. I think being able to pull those credit reports just to see if there was anything outstanding that went unpaid is a normal part of a probate process. If that was not done, I think just giving you the added peace of mind to know that everything has been settled appropriately and taken care of would be something that would be a good idea.

You would want to contact the bureaus, provide the necessary information, let them know that she has passed away so that the credit reports can be updated appropriately. And at the same time, you'd be able to get a final report just to see if there was anything you were missing. So I think that's a great plan, Nancy. And if you have any questions, once you do that, be sure to touch base with us. We'd be happy to weigh in. We appreciate your call. Thanks for listening to the program. To Spokane, Washington, Ken, you're next on the program. How can I help you, sir?

Good morning. Say recently, I paid off my home, I sold my small business, and I've been carrying life insurance, you know, to pay up the home and that kind of stuff for my wife. And so because it was term insurance, the premiums, you know, had been growing pretty healthy. Yes.

Although it's lost him. So I'm just wondering, should I continue to carry that insurance or not worry about it? Ken, what is your age? 69. Okay. And you said the level term premiums have already started rising pretty dramatically? Well, they were, but I locked them.

I locked them, but it's still like $400 a month. Okay. And what is the death benefit?

Yes, sir. What is the death benefit? Right at $150,000.

Okay. Yeah, I guess the question I would have is, is that life insurance necessary? You know, the reason we carry insurance, life insurance, is to offset a significant need or hardship that would arise as a result of your death or your spouse's death in the event either one of you were depending upon the other for income, or there would be added expense. So typically, we get a multiple of the income that's being provided 10 to 12 times the income, then we might add in significant debts like a home mortgage, college education, things like that to come up with a death benefit. The most cost effective way to pay for it is through term insurance. But the idea is that we enter retirement, Lord willing, debt free or close to it.

But also where we've accumulated enough in the way of retirement assets, such that if the Lord calls one of you home, the other has sufficient assets through Social Security and retirement accounts and equity built up in the home to be able to sustain their lifestyle. And if the answer to that is yes, that wouldn't create an unnecessary hardship, she'd be able to just continue on with the income sources she has now, which means continuing to pay the mortgage and cover her bills, then that life insurance is no longer needed and could be dropped to alleviate that significant expense from the budget. So I guess I would ask that question, do you see a real need for it at this point?

I don't. The only reason possibly was if I had a, you know, a medical emergency and it accumulated a, you know, a balance that would have to be paid, you know, that's the only reason I'm trying to decide. Yeah, well, I would see that as an opportunity perhaps to really reduce your expenses and then just start saving. You know, one option also would be to look into a long-term care insurance policy that you could redirect that $5,000 a year toward a pretty substantial policy that would probably be the real need that you'd have in this season of life.

So I'd think about it carefully. That's a lot of money that you could reclaim in the budget, especially if you have other assets to cover your and her needs throughout the rest of your life. We appreciate your call. Stay with us. More to come on Money Wise Live.

We'll be right back. Thank you for taking the time to join us for Money Wise Live today. Biblical wisdom for your financial journey. I'm Rob Lass taking your calls and questions today. Perhaps you've had an issue or a question, perhaps a conundrum you've been rolling around in your mind for some time.

You want God's wisdom as you make today's financial decisions, be it in the area of saving or investing, perhaps it's debt repayment or giving, whatever it might be, communicating with a spouse or teaching your kids biblical financial principles. We'd love to hear from you. We've got several lines open today and we've got plenty of program remaining. Here's the number 800-525-7000. That's 800-525-7000.

We're going to go to Chicago, Illinois. Leah, thank you for your call today. How can I help you?

Hey, Rob. Thank you. My question surrounds the whole process for the certified financial planners. And I'm getting ready to embark on that. Now, I know you recommend going to the CKAs and that's fine. And you mentioned, you know, going to three different ones. So my questions are, are they, I'll just tell you what they all my questions are. Are they typically willing to do this kind of a free meeting right up front?

Or should I expect to be charged for that? And the other part of this question is, given that this is an exploratory meeting, what should I bring to that meeting so they can be familiar with my situation, statements or, you know, my accounts? And kind of what should I expect at that preliminary meeting? Yeah, very good. Well, Leah, first of all, you've done your homework.

I can tell you're a regular listener to the program. And it sounds like you have all of your ducks in a row. I'm also delighted to hear you're seeking some wise counsel.

And you're exactly right. I like the idea that you would be looking toward interviewing several certified kingdom advisors, because in addition to having perhaps a CFP, as evidenced by their significant experience in the industry, they would have met further requirements to earn the CKA regulatory review review, pastor reference, client references, a statement of faith, a significant university based course, and proctored exam around biblical financial advice and a whole host of other issues. So this is going to be somebody that really has the biblical worldview as their ultimate authority. And that's, I think, really essential alongside, of course, competent financial advice. As to your questions, Leah, first of all, yes, I would expect any of these advisors that you contact would absolutely be wanting to meet with you at no cost for the initial meeting to do some discovery, where they're, in addition to telling you about themselves, also spending a considerable amount of that time learning about you.

Where is God taking you? And what has he entrusted to you? And yes, there will be a list of documents that they would likely want you to either to bring or to furnish in advance if you were comfortable doing that, both existing investment accounts, perhaps the tax return, in some cases, and other financial information, including perhaps some insurance policies, although much of that will generally come after the first meeting, but they will just do some initial discovery. And once you decide to move forward, there'll be an entire list of documents that need to be furnished based on whether they're providing you a comprehensive financial plan or asset management or both. So I think you would just want to check with each advisor to find out which information they'd like for you to provide either in advance or at that initial meeting. In terms of what you might expect for that meeting, again, that's a time for them to basically just interview you. There's going to be a list of questions that have to do with a whole host of issues in terms of how you've handled money and whether you've ever worked with an advisor before and what that experience was like and what you see your greatest needs are and where God is taking you and are there any particular issues that you're concerned about. And, you know, through that conversation, I think you'll get a good feel for whether you have a good rapport with the advisor and they'll learn a whole lot about you that will then be the basis for whether or not it's a good working relationship for the two of you moving forward.

The thing I would be prepared to do is to really describe in detail what it is you're looking for. Why do you feel like you need an advisor at this point? Have you had any experiences positive or negative in the past with investment or financial professionals and what were those? I would also want you to be ready to talk about how you expect to be communicated with electronically or in person, how frequently, and I'd want to make sure you ask whether or not you are a good fit for this particular advisor in terms of the complexity of your situation, the assets that you have, and who would be servicing your account, the person you're meeting with or somebody else in the organization. Clearly, you're also going to want to know how they get paid and that should be something that they would readily volunteer with great transparency. I think it'll be a great experience, Leah, but tell me, do you have any other questions just based on what I've shared?

I think you really covered it. One other thing, I'm thinking I should ask the same or similar questions of them all so that I can compare, better compare, but also should their payment structures be pretty much the same or not necessarily? Not necessarily. Keep in mind, MoneyWise doesn't get any part of that and so each of these advisors set their own fee schedules. Now what would be most common in the industry today is either for financial planning, a flat fee that could range from one to three thousand dollars depending upon the complexity of your situation where they'd look at all of the financial planning areas and give you a pretty detailed analysis. And then for ongoing asset management, a fee based on the assets under management, a percentage that you might expect to be somewhere between three quarters of one percent and maybe one and a half percent a year depending upon the amount of the assets that you have. The more you have actually the lower the percentage. So I would expect that for most of them, although in some cases there may be a commission generated by the sale of a product.

It really just depends on what your needs are and how the advisor's business is set up, but in all cases they should be very transparent with you about how they get paid. Okay, well thank you. You've been very helpful. I appreciate that. Well thank you, Leah. Now check back with us once you make a decision. Let us know how it goes. We appreciate your call today very much.

To Brandon, Florida. Mary, thank you for your call. How can I help you? Well, I've never been good with my money and I've listened to you guys forever and kind of said, well that doesn't apply to me because I don't get it. I don't understand.

But now I'm inheriting money and I feel the need to know something about different accounts before I go and meet with a financial planner. Sure, very good. Well obviously the Lord isn't trusting you with much and I love the idea that you want to be prepared. So let's do this. We're going to take a quick break. I'm going to ask if you wouldn't mind to be just a bit more patient. When we come back, we'll pick up right where we left off and I'll talk to you about perhaps some things to think about and where we go from here as you think about being a good steward of what God has entrusted to you.

Stay with us. We'll be right back with MoneyWise Live. We're delighted to have you along with us today on MoneyWise Live. I'm Rob West taking your calls and questions.

Here's the number 800-525-7000. Hey, have you downloaded the MoneyWise app? It's a great way to take this program with you on the go. You can manage your spending plan. You can post questions and get answers from MoneyWise coaches and our MoneyWise community and read all of our great content on our Discover tab. It's all in the MoneyWise app. Just search for MoneyWise biblical finance in your app store or head over to the MoneyWise app on the web at app.moneywise.org. Back to the phones. Mary, just before the break, you were sharing that you've been listening for a while and when we talk to folks who have a surplus and talk about investing, you've often said, well, that's not my situation.

And then you inherited some money and now you want to be a good steward of that. How much, if you don't mind me asking, is coming your way? About a million. Okay. That's obviously a significant sum of money.

There's no question about that. Have you thought through what your priority use of these funds are? For instance, do you want to pay off a home mortgage? Do you have any other debt? Are you looking to do any giving or are you thinking about investing the whole thing? Give me a sense of just where you're at financially and how you plan to proceed. Where I'm at right now is I only owe like $11,000 on my house.

I'm planning to move into my parents' house and I was going to rent my house. I haven't gotten all the money yet, so I haven't, it's still trickling for now, but I know a little bit, but I don't know. I just feel like I should know more basics before I go talk to somebody.

Yeah, I don't think that's a bad idea at all. What I want to do to start with is I want to send you a book. We'll get it out right away. A great resource called The Sound Mind Investing Handbook. And I think this will absolutely begin to help you understand some of the terminology and just a basic understanding of managing money God's way. It's a step-by-step guide to managing money from a biblical perspective, but focus specifically on investing.

And when we're done here today, Mary, if you just hold on the line, my producer, Amy, will get your information and we'll get that book out to you. And I think as you begin to read through that, not only will it give you an understanding of investing, but you'll begin to learn some of these terms. And then I wouldn't hesitate, even considering yourself a novice, you know, sooner rather than later, once you've had a chance to read through the book to go start visiting with some advisors.

I would absolutely sit with at least two or three. If you have somebody, a family member or friend that you'd like to be there just to ask additional questions, that's never a bad idea either. And I think as you begin to familiarize yourself with, you know, the various approaches to managing money, you'll be able to develop some peace of mind and some confidence well before you have to make any decisions. The good news is you've managed your finances well, vis-a-vis, you're virtually debt free, you will be, it sounds like soon enough. And you're going to be simplifying your lifestyle as you move into your parents' home. Obviously, you're going to want to, if you've never been a landlord before, do your homework on that. Make sure you have somebody that can help you with any kind of upkeep.

If you plan to rent out the home that you'll be vacating, just so you can stay on top of that, keep it rented and maintained properly. But then with the investments, you know, it doesn't have to be something that's scary. You know, there will be plenty of folks, any number of Certified Kingdom Advisors there and Brandon that could walk alongside you.

And these should be folks that have a heart of a teacher, where they really want to educate first and hold your hand to make sure that you have absolute peace of mind, recognizing you are the steward of these funds, even though they have significantly more expertise. And I'm confident that as you begin to learn and read, and then begin to sit with a number of advisors, you'll develop that peace of mind and confidence in what you need to do moving forward. But you stay on the line, we'll get that book right out to you, unless you had any other questions. Now, I think that's about to start with. Okay. Very good, Mary. Well, don't hesitate to check back in with us along the way. And may the Lord bless you. To Chicago, Illinois, Mariana, you're next on the program.

How can I help you? Hi, Rob. Thank you for taking my call. I just wanted to know, are we too tight on our Social Security checks? I'm thinking of retiring in the very near future. And I just wasn't sure about that.

Yeah, yeah. Well, clearly, what you would be receiving from Social Security would be a portion, essentially a repayment of what you've already paid into the system. And then there would be another portion that's the growth of what you've paid in over time, that's ultimately going to be what is returned to you.

And there really is no way to determine which is a return of what you've paid into the system versus what's actually the growth component to it. I mean, clearly, there is an element of this that if you've been tithing your entire life and you've been giving on the gross amount, you would be tithing again on at least a portion of that if you tithe on your Social Security check. And yet, you know, my perspective has just been to see everything that comes through your hand as God's provision, his increase and blessing in your life. And because we can't out-give God, you know, I think ultimately it's between you and the Lord.

We don't want to make it something that's legalistic, where, you know, you're trying to necessarily check a box. At the same time, I think, you know, as you demonstrate your trust and dependence on him in every season of life, including this new season that you're entering into, I believe that the Lord will honor you tithing even on Social Security funds. And I would see it as part of God's provision. But I think at the end of the day, you need to pray through that, come to your own conviction and make a decision between you and the Lord. Again, it's not about the money. It's ultimately about our hearts and our ability to participate in the Lord's activity through our giving by returning a portion of what he's entrusted to us back to him. So short answer is I would say you can't out-give God and therefore let's see it as his provision and tithe on it. But at the end of the day, I would say it's between you and the Lord, and I would want you to be comfortable with what every decision you make and do it with a cheerful heart. Does that make sense? Amen, it does.

Okay. God bless you, Marianna. Tell me, what are you most excited about in this next season? Where do you think God's taking you? I know that I'm going to retire from a 40 or 60 hour a week. However, I do want to work in some kind of part-time position, maybe a couple to three times a week, and then I mostly am looking forward to volunteering time with maybe like a nursing home to visit our elderly that don't get visits or not as many visits.

I just want to do that. Yes, that's fabulous. Well, I'm confident that whatever the Lord has for you, he'll be able to leverage the experience, wisdom, and time that you have for his glory. Keep in mind our calling doesn't have an expiration date, so you go find what God has for you in this next season of life, as perhaps you have a little bit more time, and I suspect you'll find you're busier than ever. But we appreciate you checking in with us, Marianna. I appreciate your generous heart and desire to be found faithful as a steward of God's resources.

May the Lord bless you. Folks, a lot more to come on MoneyWise. We're going to be in Coral Springs in just a moment talking about what to do with some savings. Jim's in Ohio wants to know what he should do about a new car.

Should he buy used or new? And then Lee's in Pompano Beach wanting to know about investing. That and your questions. Coming up, here's the number. We've got some lines open, 800-525-7000. This is MoneyWise Live, biblical wisdom for your financial journey together, finding God's heart for his resources that you're managing as his steward. More to come just around the corner. Stay with us. We'll be right back. Thanks for joining us for MoneyWise Live, biblical wisdom for your financial journey.

I'm Rob West. I want to say thank you to my amazing team today, Gabby T answering our phones today, Amy Rios producing, Dan Anderson is engineering, and of course, Jim Henry providing research today. I couldn't do it without them. Grateful for these folks. Back to the phones. We're heading to go to the next one. We'll be right back. Thanks for joining us for MoneyWise Live, biblical wisdom for your financial journey. I couldn't do it without them. Grateful for these folks. Back to the phones.

We're heading to Coral Springs, Florida, just down the road from where I was born. And Karen, thank you for your call. How can I help you?

Hi, thank you for this opportunity. I am a 55-year-young widow, but my question today is I have approximately $320,000 in my savings and I have an income of $2,400 a month, but that money, that $320,000 is just sitting there in my mind as a retirement. Okay. So I was calling today for some guidance or how to manage this way and manage these monies in God's way, you know? Yes, yes. So this is not in a retirement account, Karen.

It's in what I would call a taxable account. Is that right? Yes. Okay. Now these monies, this money is not taxable, that money. Right.

But it's not growing tax-deferred inside a retirement account. No. Okay. And do you have any other retirement assets specifically, or this is the extent of your retirement savings? Well, from the, I have an investment of $150,000 in properties, which I gained $2,400 a month of income. Okay. And these are rental properties?

This is through a loan through an attorney at an interest rate where I receive the income from the interest from the loan. Got it. Okay.

So it's like a private loan. Yes. Okay. Very good. And then are you working? No.

Okay. And do you plan to work or is this really how you plan to fund your lifestyle moving forward? I am most likely to be a grandmother a few months. I'd like to go back to work.

I'd preferably prefer to volunteer. I have not been in the workforce. I've been a stay-at-home mom since my first born. All right. And what is your age? 55. Okay. So you're still a bit a ways from getting any kind of survivor's benefits from social security. Yes.

I believe they, when I'm 60. Yes. But you anticipate that this 2,400 a month that is being paid to you because of the note you're holding, that will continue for some time? Yes. Okay. And that's enough to cover your expenses? Yes. Monthly. Very good.

Okay. So you've got obviously a lot of flexibility, Karen, and that's a good thing because you've got your expenses covered. You're a grandmother. You can enjoy doing that. You have the ability to go back to work at some point down the road. And once you start collecting social security, that'll be just some additional funds. So I think it's a great opportunity for you right now with the 320,000 or whatever portion you decide to invest for you to put a strategy in place to see this money grow so that over the next 10 years, maybe this 300 becomes 400 or 450,000 so that when you need to convert it to an income stream or you need it for some medical expenses, it'll be there and provide a significant cushion for you. So the way I would be thinking about this is I would say, okay, I want to carve out my emergency fund and I would set aside six months worth of expenses. So if your expenses essentially are, let's call them 30,000 a year, I'd say I'd take at least 15,000, somewhere between 15 and 30,000, and I'd put it into an online savings account that you're not going to invest.

It's liquid and available if you need it for the unexpected. And then with the balance, let's say somewhere between 305 and maybe 280,000, I would be looking to invest that and I would do that with an investment advisor, an investment professional, who you could meet with, develop a rapport with, talk extensively about your next season of life, your goals and objectives, your risk tolerance, and then an investment strategy could be deployed. There's some wonderful certified kingdom advisors there in South Florida, and I'd interview two or three of them, and they interview two or three and find the one that's the best fit for you. And then you would have some peace of mind to know that someone with expertise and experience is managing this for you, according to your objectives, but where it's not just sitting, it's actually has the ability to grow. And it could be done on as conservative a basis as you're comfortable with. This is not about you taking more risk than you're comfortable with. It's just about this money being deployed in a way allows it to seek a return, even though there will be some risk involved. Does that all make sense?

I understand. Yes, indeed. So we're, as far as an arrow pointing, where would I run to like, yes, an investment advisor? Yes, I would go to our website, MoneyWiseLive.org, click find a CKA that stands for certified kingdom advisor. These are men and women who have significant experience as investment professionals, but they also have the added requirements of CKA, which means they've gone through extensive training on a biblical worldview of managing money, pastor references, client references, regulatory reviews, experience in the business, statement of faith, code of ethics, all of those things to give you added peace of mind to that you're with somebody who shares your worldview, can give you biblically aligned professional financial advice, and somebody who has significant experience and competency. So just head to our website, again, MoneyWiseLive.org, click find a CKA. And if you have any other questions along the way, let us know.

To Parkman, Ohio. Jim, thank you for your patience. Sure.

How can I help you? Well, good afternoon. I appreciate getting your expert advice.

Well, thank you. I'm a grandpa of 12, great grandpa of two. And I was the victim of a senior scam about 10 years ago due to my own, well, my own not thinking it through. Yes, sir.

In the interim, I have succeeded in getting my credit score up to the maximum after it had been destroyed due to the scam. And I'm now in a position where I need to get another vehicle. Mine has 200,000 miles on it. Okay.

Because I got it when my credit was terrible, I still owed $10,000 on it, but I live in the snowbelt of Ohio. So I'm a little concerned a little concerned about the coming winter. Anyway, now I'm rambling. I should stop and say that I'm debating whether or not to go look for a used car or a new car or leasing.

Yes, sir. Because all the news is saying it's a terrible time to be thinking about getting a vehicle. But unfortunately it is, and I'll talk about that. Jim, tell me how much are you looking to spend regardless of whether you buy new or used? Have you identified a target amount? Well, I'm going about that the wrong way from what I understand.

I was thinking more along the lines of what I can afford on a monthly payment. Yeah. Yeah. How much do you have to put down? I'm not very particular. Okay. I'm sorry.

How much do you have to put down? Probably around 5,000. Okay. Very good. Well, you're right. Unfortunately, it's not a great time to buy a car. Many new cars are selling above the sticker price, but the price of used vehicles has skyrocketed. A lot of it has to do, I guess I should say, with a constricted pipeline for new cars due to the pandemic. But oddly enough, that's caused used car prices to grow up dramatically. Used vehicles went for about 40% more in June than they did before the pandemic in February of 2020. An average nine-year old car sold for $13,200 in June, according to Edmunds.

That's a 30% hike over the same month in 2020. A five-year-old vehicle run you on average is staggering $24,000. So yeah, it's not a great time to buy a car. And where I would typically be saying I'd start used for most folks because you're going to take care of some of that depreciation, it's a good time actually to look for a new car just because of what we're experiencing in the used car market. So I'd be looking at both. You know, I don't like to focus on a monthly payment at the same time. I think the key is what fits in your budget, how much can you put down without getting cash strapped, and what would that resulting payment be that gives you a good reliable vehicle that doesn't put you in a situation where it's going to impact you and create a hardship financially. So unfortunately, I would, you know, it's not a great opportunity right now, but you need reliable transportation, and I totally get that.

So I think I would be looking at both opportunities, both the used car market and the new car market, do your homework, decide on an amount to spend, understand what it would do for your budget, make sure you count the cost, and then let the internet be your friend as you start shopping. Does all that make sense, Jim? It certainly does. Okay, listen, all the best to you. Hey, check back in with us along the way and tell us what you find. And don't forget to pray about this. Ask the Lord to just make a way and make it really clear where you should head.

And by the way, if you decide to buy used, which I'm generally a fan of, apart from some of the anomalies we're facing right now, make sure you get a good third party reliable mechanic to check it out before you make a final decision. And we appreciate your call today very much. Sally is holding patiently in Chicago. Sally, you stay on the line. I'll talk to you off the air. Unfortunately, we're out of time today, folks. Thanks for tuning in to MoneyWise Live. I'm so grateful for the chance to just be invited into your story, to hear your questions and concerns, to celebrate with you, and to find God's heart as you manage his money as a steward of his resources. It's a privilege each day to join you in this calling.

Folks, thanks for coming by. I hope you'll be back with us next week. But in the meantime, have a wonderful weekend.

MoneyWise Live is a partnership between Moody Radio and MoneyWise Media. May the Lord bless you. We'll see you next week. Bye-bye.