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The I Bonds Have It—Inflation Protection

MoneyWise / Rob West and Steve Moore
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August 6, 2021 8:03 am

The I Bonds Have It—Inflation Protection

MoneyWise / Rob West and Steve Moore

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August 6, 2021 8:03 am

I Bonds may not be the most attractive choice among fixed income securities, but you may be surprised to find they have a feature that will make them more appealing in the near future. On the next MoneyWise Live, host Rob West will talk about I Bonds and how their built-in inflation protection is becoming increasingly important in today’s economy. Then he’ll answer your calls and questions on various financial topics. That’s MoneyWise Live—where biblical wisdom meets today’s finances, weekdays at 4pm Eastern/3pm Central on Moody Radio.

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Hey there I'm Jim and Baxter and I certainly radio is the director of business development. Our team's job is to find businesses that love Moody radio and Jesus Christ and want to support the work we do financially just like you today. I like to introduce you to United States mortgage. Simply put, they are afraid focus mortgage team serving clients across the United States.

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Check out the top five things you should know about United States mortgage@unitedfaithmortgage.com thanks to you and United for supporting the radio. United faith mortgages, a DBA of United mortgage Corp. 25 Millville Park Rd., Millville, NY license mortgage banker for 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 will only but maybe the Cinderella fixed income securities almost always left out when folks diversify their portfolios these days. The bond could become the belle of the ball. Rob West I bonds of a feature lacking many other fixed income securities built in inflation protection is becoming increasingly important to talk about that first today that it's all your calls at 800-525-7000 800-525-7000.

This is moneywise. Why is okay so you never buy buying I bonds but they can help you hang on to what you already have. Instead of letting it get slowly eaten away by inflation which is starting to pick up infected already has the I and I bonds stands for inflation. So what exactly is, and I bond and how does it work well.

By definition, it's an interest-bearing US government saving security as such. It's backed by the full faith and credit of the United States government I bonds have a 20 year initial maturity, plus a 10 year extended period for a total of 30 years after that they stop bearing interest and I know what you scoffers out there thinking interest-bearing cost. Not much that of course you're right, but I bonds actually yield the exact amount of interest for specific purpose. The previously mentioned hedge against inflation and how do they do that well I bonds actually have two separate interest rates, one fixed for the life of the bond and another that's variable and is pegged to inflation. That rate is readjusted every six months in May and November. Now it probably won't surprise you that the fixed rate for and I bonds sold today is a flat 0% and that's where it will stay for the life of the bond. However, the variable rate is now at 1.77% which is adjusted or you might say compounded every six months so the annual yield of and I bond right now is actually over 3 1/2%. That's better than what you can get with the CD right now and way better than the savings account. Now there are a few drawbacks to the I bond especially if you're looking to rebalance a significant portion of your portfolio with them.

Here's the thing. You can only buy up to $10,000 worth of and I bond per person each year, but you can purchase another 5000 worth each year with your tax refund. Another plus you can buy it I bond for as little as $25 online. Now you can't redeem and I bond until a full year after the purchase and there's an early withdrawal penalty but it's not draconian if you cash out of bond before five years of ownership you have to forward forfeit three months worth of interest.

As such that you could even consider and I bond or to is sort of a long-range portion of your emergency fund. It would keep up with inflation.

And if you had to cash one in well it wouldn't be the end of the world. Another drawback to I bonds is that you can't put them in a 401(k) or traditional Roth IRA. That's because I bonds are bought with after-tax money. And while the interest on and I bond is tax-deferred.

You do pay regular income tax on that interest when you cash out the bond if you want to put in inflation indexed government bond in a qualified retirement account. What you can do that with something called tips treasury inflation protected securities of these default free securities are also hedge against inflation and you can hold them in a traditional or Roth IRA.

Now buying I bonds probably couldn't be easier to just go to treasury direct.gov and look for the link how to live by series I that the reason you probably haven't considered I bonds in the past is because their track record over the last 20 years or ship so it's been terrible because of the combined effects of feds, the Federal Reserve's loose money policies and low inflation that's kept both the fixed and variable interest rates of the I bond very low, but that's changed recently as inflation began to creep back up in the annual yield of the I bond went above 3 1/2%. Now there quite the hot commodity and investing star circles.

But make no mistake buying I bonds for your portfolio is not investing, which implies risk. And for that risk you're given the potential not the guarantee of a higher return and I bond essentially has zero risk so the return is appropriately low as we said it's a hedge against inflation. You could compare it to buying gold which some people who to fight inflation as well. The differences with gold. You have no guarantee holdings will keep pace with inflation and, in fact, you can lose money is no chance that I bond. Remember, sometimes were not that interested in the return on our money. The return of all right, so when I bond can help you save and hedge against your calls next. 800-525-7000 stay with us delighted that you with us today on moneywise license for stopping by to take your calls and questions today on anything financial. Eric is ready to receive your: Amy will probably talk to you along the way.

Our team will take good care of you. But we want to address whatever's going on in your financial life and do it from a biblical perspective. That's what we do here on Moody radio and that's what will do related to your finances today.

Here's the number 800-525-7000 800-525-7000 before we take our first call today. Just take a moment to say thank you, thank you for so many of you and the moneywise live family that were part of our 48 hours of impact the last two days we had the opportunity to pause our normal programming for a great cause to raise money to fund tuition sponsored education at the Moody Bible Institute preparing the next generation of Christian leaders and pastors and missionaries to go out without crippling debt and serve as the Lord leads after receiving a wonderfully biblically grounded education and you helped us do that.

In fact, we met our goals. We went past some of our goals and we couldn't have done it without you.

So from the bottom of our hearts. On behalf of the entire team. Here, the Moody Bible Institute in Moody radio we just want to say thanks hard. Let's head to the phones today. Again, the number 800-525-7000.

We have a few lines open were going to begin right there in Chicagoland for a thank you for calling. How can help you.

Thank you. The question that I call about is how do I determine which credit card to close the sheet and data total of 13 credit cards and I've already paid off six of them down to zero balance. I have to more 2042 balance that out like the aunt could mistake so that would be eight of them that would be gone.

I have been in business account to two business. I did a stimulus loan I needed to and I have a very small business card and I use Clement. It only went 53 on so the question is can't read about general credit card I needed it I got it when I need it. I don't need it. 119.9% all the way up to 27.

Internet I want all of those, okay as well been able to get me excited have been able to get some better rates.

I have a Line now. No question they named benefits, and what else I want to keep.

Okay, so help me welcome things. Number one is no I'd love for you to get out of the cycle of using the cards at all. Once they're paid off unless you're using them for budgeted items and you have the discipline to keep it to that and then pay them off in full every pay period or every cycle is that where you're headed or do you believe the land had okay I want to get rid of all that initial sakes that I have a zero now.

Yes I know I can't get down six credit cards without it.

Really, Kelly, Mike credit and hello to be cut that paid all the bees down like this. My credit score hit me down to like 770. Yes, well, what's can happen is the reason and that's great credit score and you're going to see some minor impact. But here's the thing. If you're not out looking for new credit. It's not a factor. And even then were not to see any significant drops.

That is probably gonna push you down into another tear that would prevent you from qualifying for probably close to or if not the very best rates and terms available. The reason that you saw a bump up when you paid the balance is down is primarily related to something called credit utilization in the aggregate all of the credit that's available to you across all of the cards and then when you compare that limit the total to what you owe across all the cards that your credit utilization in the aggregate, and that needs to be below 30%. Even better if it's below 10 and then there's the credit utilization by card so as you pay those bounces down your credit utilization drops because you owe a smaller percentage of the total that's available to you. The opposite is what's going to happen when you close that now I agree you should close them, but only explain why you might see a temporary, and I think it will be temporary. A temporary decline in the score is because as you pull those limits out of the equation, then what's remaining on the other cards is now a higher percentage of the total available because once in accounts close that credit is no longer available to you, but that's okay I want you to get out from under those cards, especially Damon annual fee and to the extent they could be compromised in any of them can even though it's a zero balance. You really should be watching those accounts every month to make sure there's not any fraudulent purchases, so soon as it's closed. That's one less thing you have to do every month. So here's the way I'd approach of faith I would do three every six months so I would pick the three right now, I'd look for any that have an annual fee first. If they do close those because there's no reason to pay that you're paying that for nothing. If none of them have an annual fee then I would close the three of the six that you're ready to close that are the newest because one other factor the plays in your credit score, other than credit utilization is something called your credit history which has to do with how long you've had credit established. So I closed the newer accounts and keep those older accounts in the credit mix as a relates to your score does it all make sense to you and make it make very good time so I'm on the right track and get to know how to do the timing of the closing having theories on any theory every six months so I you have to sign company that had annual fees okay so I'd start with those and then pick one other, perhaps one the one that's the newest let's close all those now make sure if you have any recurring charges set up that you cancel those done sound like you do and give them a call.

You can also send something in writing. You want to get confirmation the accounts been closed and then you want to pull copy your credit report 30 days after to make sure that shows that the accounts of been closed and once it does, then you can keep those records for as long as you want but you don't have to continue to check on them and then six months from now. I do that over again with the next three and six months later you'll be ready for three more and you're on your way.

Fade to perhaps being down to one or two cards that you can use only for budgeted items and pay them off at the end of the month. Some good okay my ball is I have a car that I would like to keep wanted to budgeted items and one, inescapably, I have a rental property so I need to have an emergency backup plan if I don't have the cash that blackberry and those three I'm working on a door project that cost me about $5000 but I get 18 months no interest in a 14 month no interest, some going that you get them paying off yeah that sounds good. I think you're on the right track. I would get out of the cycle though using that. And let's say that I also want to make sure you prioritize an emergency fund of 3 to 6 months expenses but you keep up the good work and you'll be completely out of debt in no time and on your way to not having to think about paying anywhere near those interest rates on a monthly basis. We appreciate your call today very much. Love, folks. That's what it's all about applying God's truth to your financial life working to do that with a number of additional callers here. I want to talk about annuity. Ted also wants to talk about credit score. Cassie was buying a new card. This is a challenging time shopping T that went up as well. We love to hear your question here is another 800-525-7000 six return again moneywise, not biblical wisdom for your financial decisions on Rob West were delighted that you joined us today. We have a few lines open 800-525-7000 800-525-7000. Have you downloaded the moneywise app yet. If not, it's in your app store. We'd love for you to give it a try.

There's three major components to the moneywise at which by the way, is a free download. There's our community where you can post questions and get answers from her moneywise. Coaches and other people in the moneywise community who would love to weigh in on whatever you're dealing with others are discovered tab with the best content in Christian finance podcasts, videos, articles, all flowing into one place and there's our money management system where you can put together a digital envelope tracking system and manage your money right there in the app you can connect to 11,000 institutions with a pro-subscription. Download your transactions automatically and securely and you can stay on top of God's money that way. So we look for you to check it out.

It's in your app store. Whether it's Google player, Apple just type in moneywise biblical finance and you'll find it today, we look forward to you checking out. Let us know what you think are, let's head back to the phones. Ted is in Chicago. Ted dummy what's going on with your credit score before today. I God I have something card capital one wants. Okay. And it saves some your XP. We are in cycle score dropped by 53% yes and this morning I try to log on to experiment, to get the free people. I could not. So I called they said to take 5 to 10 days by mail. The only thing I did was maybe on Tuesday when I write to my bank my bank manager said hey I have a promotion for you apply for this credit card and get $500 bonus and you could pay off $3000 if you charge $3000 in payoffs within three months. Okay… I did not do anything and I always pay my credit cards so late. Well I and that's probably what it was. Let's talk to your credit score, but then I also want to talk about this loan that you applied for this card. You any time you authorize an inquiry for a lender to go out and pull your credit, that's called a hard inquiry which is different than a soft credit check which you would initiate just for your own knowledge, and in the information, but when you authorize a lender to do that for the purposes of evaluating whether or not they'll extend you credit that hard inquiry is going to drop your score.

Just because as a part of the algorithm they know you're out there shopping for credit which increases your risk of default across the board and so part of the scoring models factor in that inquiry, so that's a temporary drop.

I'm not surprised to hear that it may have dropped by 50 points or so it'll probably bounce right back so I wouldn't worry about it in terms of checking your credit score, Ted. There's any number of places you can do that free could go to credit Karma credit Karma.com you could look with your credit card so I believe capital one has a service your bank. I know mine does your bank may have a service offering free credit scores. Now, many of them are doing that. It's very common these days. So before you have to wait around for you may be able to get it through one of those providers. The last thing though I would say is I don't like the sound of what you applied for how you plan to use that credit that you apply for that banker. I really don't need it but got my bank manager said hey why don't we get this $500.

We are giving $500.

What is called I see the idea have to use it if certain number of times or months. We reminds I should charge $3000.

You can design payoffs.

I get $500 yeah okay well here's the thing, as long as you use those use that only for budgeted items. You know the reason they're doing that is because folks like you will and I'm not saying you're going to do this, but what they're counting on is that you can open this account you're going to start charging on it. You can use that to a new newly available credit to go out and buy things that aren't budgeted and then you're knocking to pay it off and that $500 that they're gonna pay you pales in comparison to the interest they're going to earn on your charges in on the coming years. And so that's why they're doing it. Plus, this is something you can have to keep up with and there may be an annual fee attached to it. So in the future I wouldn't do that and I realize that bonus is nice, but again is just one more account you can have to keep up with there's maybe a temporary impact your credit score and at some point the future until it's closed. If it's compromised, you have to continue to monitor it.

So what I would do is if you want to go ahead with it and again you're only going to charge budgeted items things he already have the budget in your to pay it off in full and then after three months, you're going to close it and not keep it and continue to charge on it, then I'd say go for it. Enjoy that $500, but I wouldn't get in the habit of that because you can end up with a number of these accounts that you just can have to stay on top of and they will put a drag on your credit score over time.

So don't worry about those 50 points but stay on top of this and then let's get it closed. When you're done, Ari Traverse, Michigan, Traverse City, that is Cassie how can help you. Question two questions we are looking to buy a work truck and by that I mean stripped down most their basic truck you can get. I had to classify the first, is there a particular time of year that is good to buy a new vehicle that the best time just going way and that's it's it's the end of the model year.

Clearly the end of the month is the best time to buy a new car just at any time, but the very best time would be right there at the end of the model year. The end of the month the end of the year where they are now transitioning from one model year to the next, and you could pick up. You know the model year that's on its way out that they're trying to move hit some goals and you know you can usually do pretty well. The other thing that you've got a deal with here is just what's going on in the car market right now. This is a very challenging time to buy cars. Just because of the inventories. I saw some date of the test said used cars were 40% above pre-pandemic prices really high. Now we just got some good news in July that that's starting to come down and the reason is the inventories are increasing as we head toward the end of the year. So as the new car inventories billed and they need to and that's also to have a ripple effect to use cars because one of the reason used cars are so high is because the inventories of new cars were so challenging the folks who were looking to buy a new car and couldn't get them in a timely basis.

Were going to use the net was pushing the price is so I would sit answer your question if you can wait until the end of the year. That would do you some good to know you had a part two we got hit afraid to stand the line right back moneywise for joining us today moneywise live around last year because this is the program where we recognize God owns it all stewarded on the steward of God's resources, which by the way, is a high calling were managing money for the creator of the universe and money then becomes a tool to accomplish God's purposes.

Here's the question what's going on in your financial life and how can we dive into the 2350 verses in God's word to pull out the principles and best practices to apply to your financial situation will do our best to do that today. Let's head back to the phones Cassie thank you for your patience.

I know that we dealt with the first part of your question about when to buy a car but you had a second questions of the redhead resource that I can compare values between two vehicles and I'm want to be a brand-new 2021 work truck okay to give you a hypothetical second one by making so the second one is going to be 2012 work truck mean stripped down and were input that at 80,000 miles and were input that $20,000.

The new truck working to put $30,000. So which one of those is a resource that can tell us which one would be the best value for money yeah well it's a good question. You know TBB.com or Edmunds.com is kind of my go to the what that's going to do is give you both the dealer and the private sale values of any car new or used and will help you at least evaluate what you have and that would also give you a sense if you went and looked at you know where you know cars read historically. You could see how they've done so I'd probably start there.

Are you just trying to determine, you know, is it worth the extra 10,000 to buy new. You know, based on what it might be worth five years from now and whether you could recoup that in the resale okay yeah and so I think you know what you could do would be to take that same truck and look at that. You know what it would be what it five years, you know, if you take that same model truck if it's available and look at the one that's five years old and see what it's selling for today and then you could compare that to the one that you're looking to buy used and just see if in fact you know it's selling for more than the one the tell you're looking at used and is that difference enough to offset the $10,000 premium. How old is that the used truck 2012 okay yeah so so if you compare let's say a 2016 of the same model on KB be in Edmunds.com to your 2012. Let's just see if there is less than $10,000 difference are more than $10,000 difference and that would be at least a good starting point as to whether or not that premium makes sense. The other thing to factor in is just the environment were in right now where you know it. Use cars are a bit more attractive right now.

Even then the news new cars because the new car prices are elevated, especially as the inventories on the new car start to take care of themselves and are replenished, so it's a little bit of an unusual time right now, whereas you know normally there's plenty of inventory and you know were not seeing these, elevated prices, that's just not the case today so I think it's really important now that you do this analysis just because were in a bit of an unusual. But does the does the method I described make sense. Appreciate your getting at 40% amount and I was wondering I've been looking for you: I was wondering right now banging I used truck needed vehicle and how much percentage of our day, and I appreciate getting that information you said it was about 40% higher yeah and that's coming that's pre-pandemic year-over-year.

The last I saw, according to Edmonds was there about 21% higher bill from one year to that literally 12 months and that's the highest increase in average prices that admit Edmonds is ever tracked, so we really are kind of in unprecedented times and a lot of it, if not the majority of it has to do with the pandemic and just the supply constraints but good news is that's working away its way through the system.

So if you can wait, I'd probably wait till the fall. As we get closer to your end but go and do your research now just to decide which makes the most sense the other used option from 2012 or the new car now that would be comparable to that.

You of 2012 car as a 2016 because you know we be looking at it. Five years later just to see what what it would be worth so appreciate you checking in with us.

Cassie all the best to you as you explore this Bob is in Brazil, Indiana, Bob, go ahead and protect them a call. Questionnaires two years ago I had to leave a job that had a 401(k) matching 401(k) and the job now that I have does not have a 401(k) so somebody told me that out of taking my money over into the anti-annuity which I got about $51,000 and to put my questionnaires.

Six.

Get right turn 60 years old. Hopefully, I'd like to retire and semi-retire in about 63 so one mortgage is 45,000. My second mortgages 21 on my questionnaires should take the money out of my annuity pay off my $45,000 per small beach, take the money that I was paying on them monthly payments to double up and pay off my 21,000, which would be about two years now to give me two year still of working and put that money Dan back into my savings and work part time.

When I get my Social Security interested. I like the plan.

Let me just as though, did you say in addition to the annuity. You also have a 401(k) know that there 401(k) ended and I put my money over into an okay so you would deplete your retirement savings at this point in this process until you build it back up through the savings from the two mortgages is that right right well I would have still have 6045 out of the 50 want to pay off the first mortgage.

I that I could either leave in a note of it in your move it over into a savings account into my regular savings account because I just didn't so your you. Your plan is to use Social Security plus your part-time job income to cover your lifestyle.

Well that and my wife still working. So we've been thinking an art budget right now our highest thing out as our mortgage is so quick you get those paid off.

I think you we could yank it with our budget, we could make what have you see what kind of returns are you getting on the annuity.

Is this a variable annuity. Yes, it is okay has an Italy many years ago. So I'm not really had a chance to see what kind of performance with Pat on okay alright well I'm a little hesitant for you to pull it out just because at the first thing you need to understand if you don't already is one of the tax implications and what of the surrender charges that you can have by pulling all this money out of you looked in either of those. No, not yet.

Okay, let's start there, because that cost of both the taxes and the surrender charges that you paid the insurance company are probably gonna be cost prohibitive. The key I think right now because you still have time on your side is just a pair back your lifestyle is much as you can. I'd love to see you let this even though annuities are my favorite attorney in their love that just continued pro and you get the double up on that payment or have a little bit hundred dollars a month. Whatever you can to the mortgage every month to try to get it paid off between now and retirement so that when you retire to part-time income. At that point it's payouts can take a little longer that'll preserve this retirement account would start by checking the taxes in the surrender charges, and if you have other questions, give us a call back about moneywise. Thank you for joining us on moneywise like today unravel as heroes, no more than ever, biblically solid ministry minded Christian leaders in Moody Bible Institute is not need any for helping us do it. A big thank you for the last two days and all that you gave to help us reach our goals to fund the next generation of Christian leaders as they study with tuition sponsored education at the Moody Bible Institute to be had on behalf of the Moody Bible Institute in Moody radio we just want to say thank you but said back to our phones today. Wilford is in Fort Myers, Florida hello Sir, I thought I yeah like I want to go into investment. But if you'd which of them like it but I do not know how to go about it.

But if that could take which of those but I don't think audience if you mean like TV is achieved by the guide I found my either reached one if in this one for me to try and find it out. So the first thing we want to talk about is just what you're trying how much you'd like to be able to contribute each year each month and then secondly, what type of account is going to be best as a 401(k). If you have one available or for three beer do you need to use an IRA and then thirdly watch institution in which strategy are you going to employ for investing the dollars that you put into that account. Also, let's talk first about what you have available. Do you have an emergency fund and and have you paid off all your credit card debt.

I don't have any credit card okay.

I have an emergency savings account. Saving a call and not sure… How about I and my savings at about 9000. I like my checking that 5000 that on the way. Okay, so what is it take to run your household on a 30 day. What are your monthly expenses roughly I would shed. I will send between 19,000 2000 are so yeah let's say you're you're missing a few… 2500 to 3 months expenses is $7500 and you got 9000, that's great.

That's the money that you gonna fall back on if you have an unexpected expense and it sounds like your debt is under control. So yeah, I agree. You need to be putting something away for the future. The good news is you've got reps 20 years or more.

To do that in you can put a whale, a good bet.

If you can just be systematic in your contributions.

Do you have a 401(k) available at work looking to be between you and tell you that have a 401(k) going on the seventh of okay great.

Do they do any matching of any kind. They don't matching what that help the media like much of the expected and what about the media like 6 to 7 years before a company for the okay so you might be able to get a portion of that 6% by being there two or three years right away. Okay, I'd check on that and find out.

To suggest you use your 401(k) is the place that you're going to invest this money not opening and a new IRA or something like that at TD Ameritrade or Vanguard, I just stay right there in your 401(k) because first of all we want to maximize the match because that's free money if they're going to match you dollar for dollar up to, let's say 3%. While that's 100% return on your money as soon as you make a contribution. You're not gonna find that in the market. So let's start there.

The good news on the 401(k). As you can put away quite a bit of money. You know on them on an annual basis in in that account so you know with a 401(k) this year.

You can put away $19,500 and you've got a menu of investment options inside the 401(k). Everyone does that, you can choose from and if you have questions, you could connect with the plan administrator and asked for some advice. But you could use one of the target date funds that's pegged to your retirement date that gets more conservative over time. Or you could, you know, choose any one of the investments. Apart from that inside the plan in terms of how much you have to put away. What surplus do you have that you could contribute on a monthly basis and by okay I wide-eyed start there and that's not a bad debt goal and then the key would be. I'd love for you to get that up to 10 even to 15% of your pay as you're able to. Over time, and maybe through salary increases or you know you pairing back your lifestyle. You can look for ways to free up more money, but 5% to great starting point, but I use that 401(k) they can take it right out of your paycheck every month before you receive your paycheck and make that contribution directly ends that some good okay Wilford, thank you for your call today serve a St. Charles, Missouri, is Julie Julie, thank you for your patience. I can help reclaim our thought out the new owner and so they have offered to have a role our 401(k) to their 401(k) and I didn't know if I should do that or if I can dictate how or IRA either one would work.

How much do you have in the 401(k). Julie 25,000. Okay you know I think it probably makes sense just to roll that right into the new 401(k) and keep contributing the neck and have an extra count that you cannot keep up with and if you put it into an IRA, then you're going to have to decide how to manage it. Meaning what investments to select and it's not quite enough to hire an investment advisor.

So you either have to use your Robo advisor solution or you could use her friends@soundmindinvesting.org that would make it through their monthly newsletter. They would make recommendations on some high quality low-cost mutual funds, but you'd be making the selections in the 401(k) you would just choose from the menu of options. It's a little simpler to do and it's just keeps everything nice and neat because everything is in one account both the amount you've already amassed but also new contributions going in your planning to still contribute to the new 401(k) several more years.

Okay yeah so I would just roll it over into the new 401(k) and keep moving, and if you have questions about the investments I'd check with the plan administrator of somebody who could advise you or you could connect with a certified kingdom advisor in your area just to look over your options and then based on your age and goals and so forth. You make some recommendations on which funds to pick and then you know you just want to look at that every six months to a year now. You're welcome Julie, thank you for listening: we appreciate to North Jackson, Ohio. Betsy is on hold and Betsy how can I help you keep me on probably changing your job for sure. 1008 I have a mortgage that is 99,000 might have a credit card for 11,000 and I'm not sure how I can make it better.

And sometimes I wonder if I can get retirement pay half the mortgage. I think That I'm Not I'm Not Sure What I Can Do Right Now.

Yeah Well You I Think the Key Is Just Really Trying to Stay Really Tightly Focused in on Your Spending Plan to Free up As Much Margin As You Can so That You Can Get That First of All, the Credit Card Paid off to Zero and Then It'll Take That Amount That You Had and Assuming You Have an Emergency Fund in Savings and Just Roll That Money That Was Going to That Credit Card over to the Mortgage to Just Try to Accelerated Because I Agree You Know You've You've Got This Hundred Thousand.

I Would Rather You Not Take That out, You Know, Because As You Said You That's That's A Lot Of Tax or to Pay on That and That's Money That's No Longer Growing for the Future Which You're Going to Need Additional Your Retirement Funds to Supplement Social Security down the Road and Because You're Already Planning on Working for Your Good Bit Longer.

I Think If You Could Time the Payoff of That Mortgage to Your Retirement Date. You Know That Would Be the Best Case Scenario. Now You May Get. Let's Say Five Years from Now, You're Saying Okay, Now's the Time. And There Still 20,000 Left.

Will That Might Be the Time to Pull out Your 401(k) and Just Wipe It out. So As You. You Know, Slow down, Get Less Income You Perhaps Evenly Leave the Workforce Altogether Your Lifestyles As Low As Possible. I Realize It's More Than Just Financial, but I Would Just Caution You on Your Taking a New Job That's Gonna Drop You down to a Much Lower Salary Because Now Is the Time Where You Need As Much the Surplus Is Possible to Get the Credit Cards Taken Care Of and Pay off That Mortgage and by Reducing Your Income That's Gonna Make That Even More Challenging Now. There May Be Other Factors There That You Know Just Require You to Do That Healthwise. Her Family Are in Stress or Whatever It Might Be, but Apart from That, I'd Probably Try to Keep This Higher Income in Place and Let's Get Some of These Things Taken Care Of. Does That Make Sense Alright so I Should Probably Just Wait like Half My Credit Card Will Eliminate Every That's What I Would Do When I'd Roll the Amount That You're Paying on the Credit Card over to Increased Principal Payments against the Mortgage. Once You're Able to Do That and I Think That Is the Best Case for You Know, I Know It Can Feel Overwhelming at Times, but Just Stay the Course Be Found Faithful with What God Is Providing and I'm Confident You'll Build Get This Debt Paid off and You'll Have Something to Show for It down the Road with a Significant a Retirement Account That Can Be Then Converted into an Income Stream to Supplement Your Social Security Substandard Betsy, You're Doing a Great Job and I'm Confident You Get There. We Appreciate Your Call. Folks That's Going to Do It for Us Today.

We Covered A Lot Of Ground. We Talked about Paying down Dad, Do You Handle Credit Scores Saving for Retirement, Buying a Car in the Midst of These Interesting Times That We've Done It All, Weighing It against the Counsel of Scripture Which Is What We Do Here Moneywise Live. We Appreciate You Being along with Us This Week and That's Been A Lot Of Fun.

Thanks Again for All You Did for the 48 Hours While Saying Thank You Thank You My Team Eric Tidwell Dan Anderson Rios and Jim Henry Could Do without Them. We Also Could Do without You so I Hope You Come Back and Join Us Again Tomorrow. I'll Be Here, Lord Willing, Calls in Time

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