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Variable Income Budgeting

MoneyWise / Rob West and Steve Moore
The Truth Network Radio
August 10, 2021 8:03 am

Variable Income Budgeting

MoneyWise / Rob West and Steve Moore

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August 10, 2021 8:03 am

Developing a budget isn’t difficult, if you know how much money you have to spend. But what if your income keeps changing? Then what do you do? On the next MoneyWise Live, host Rob West will explain that when you have irregular work hours and pay, budgeting on a variable income isn’t hard—you just need to know a few helpful tricks. Then he’ll answer your financial questions from a biblical perspective. That’s on 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 faith focused mortgage team serving clients across the United States.

They put together a team with Christian values with faith and family at the core. They know that this is arguably the most important purchase of your life. Check out the top five things you should know about United States 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 all licensing information, go to an MLS consumer corporate MLS number 1330. Equal housing lender not licensed in Alaska, Hawaii, Georgia, Massachusetts, North Dakota, South Dakota and Utah developing a budget is difficult if you know how much money to spend your income keeps changing fibroblast companies are using more contract workers these days and that often means your regular hours and pay well budgeting out of variable income. Is it hard if you know a future X all share that with you today that it's all your calls at 800-525-7000.

That's 800-525-7000. This is moneywise live biblical wisdom for your financial future. So first let's talk about budgeting in general and we like to call it a spending plan which is actually a more descriptive term you're planning what you will spend and here's why we do that because spending less than you earn is the key to every financial success. It's the foundation that everything else is built upon its nearly impossible to stay out of debt and save without spending plan. This is a plan for your money. It gives each dollar a job and directs the flow of money in and out of your accounts. You'll never be able to maximize your giving and saving without a spending plan and as a steward of God's resources. I think you have a stewardship responsibility and this applies to everyone, whether you make a little or a lot and it's really imperative for the Christian that you wisely manage the resources God has entrusted to you.

Proverbs 27, 23 reads know well the condition of your flocks to give attention to your herds, for us, that means knowing how much we have coming in and going out and where those monies are directed.

That's the key to this idea of the spending plan will each have to give an account someday for how we manage money, so we need to have a plan that the format you choose for your spending plan is up to you. You can use pencil and paper or you can take a digital approach and for that, we recommend you check out the brand-new moneywise app in your app store. It will help you set up your budget using the tried-and-true envelope system moneywise. App also has the best financial content from a host of Christian authors like Chante felt on Art Rayner and Randy Alcorn.

Some of the moneywise app wherever you get yours. But I digress. No matter which approach you choose, begin by tracking your expenses for 30 days capture every expense, no matter how small, then I think about the nonrecurring expenses and add them in with the monthly amount needed to have what's necessary when that expense rolls around. This would be quarterly insurance payments annual homeowners association fees vacation expenses and your Christmas fund then take that 30 days of actual spending plus the nonrecurring expenses I just mentioned and build a budget by category. Again moneywise app will make quick work of that for you but what you take a first pass, you'll need to do the hard work of bringing the budget in line with your income and making sure that your spending reflects your goals and priorities. If it doesn't, that's where you need to start cutting back and making changes.

By the way, if you choose to use the moneywise app you'll find it's envelope system particularly helpful for controlling the flow of money in your discretionary categories, which are the typical budget busters because they vary from month to month.

These are things like eating out shopping for clothes, gifts and entertainment you get the idea. You also have to decide who manages the budget going forward, husband or wife. Well, as you know we all have different gifts and talents. Sometimes the more detailed organized person is the wife sometimes it's the husband you've gotta figure out what's the best approach for you.

You can have one person being the bookkeeper and I recommend that you do. But both spouses need to be in on the plan and the commitment to sticking with the plan.

This is why we recommend and how her date in the form roast of this program recommended for many years that you have a weekly money date. This is where you come together each week to review the spending for the last seven days make course corrections and address the unexpected. That of course the unexpected is always going to happen. So we've covered the variable expenses.

Now here's what to do about the variable income. Start with what you do know what was your average monthly income for the last six months. Can you reasonably expect to earn the same amount in the next six months. The goal is to arrive at a budget that can be covered by the average or slightly below average amount you expect to earn each month in the months that you are more keep the excess in savings to fund the lead months. You may also want to consider depositing all of your income into savings and then transferring only a set amount each month for living expenses. Then every six months or so. Reassess your average income for the period to make necessary changes to your budget and that's how you budget out of variable income are your calls next. 800-525-7000. This is moneywise live biblical wisdom. Your financial moneywise live around last number we have lines open 800-525-7000. That's 800-525-7000 whatever is on your mind today, financially speaking, we'd love to tackle it will do it through biblical lands again. 800-525-7000. We started the program off today talking about budgeting on a variable income which certainly can be challenging when you can't count on a consistent amount coming in every month we asked that question on Facebook that is what advice would you have for someone trying to budget on the variable income and got some great responses. Charlotte said figure. Your lowest month and start off your budget based on that covering necessities as your month progresses, you can make adjustments to accommodate the other things you want to fund is the is the money comes in that's similar to our idea that you'd take 6 to 12 months of previous income coming out of let's say a small business you'd want to try to pay yourself at least a conservative minimum every month and then build your budget on that as you make distributions over and above that, then that's the opportunity to fund other items like longer-term savings buckets. I would say vacations and things like that but James says six months reserves is key to budgeting on a variable income and I think there's good wisdom.

And that gives you a little bit more flexibility since your income is obviously not steady.

So this can be a challenge but it's not one that we can overcome.

Hopefully you got some good ideas today and again the moneywise app can help you with that downloaded in your app store to search for moneywise.

Typical finance RA were to begin to take your calls and questions today on anything financial. Again we have some lines open. Here's the number 800-525-7000 were going to begin in Wausau, Wisconsin, Beth, thank you for calling today. How can help you looking for about walking home at three acting that morning financial person had told her to do that, evidently they would turn the mortgage monthly and then it would make more money than what depending on what the interest rate and dynamic network got great rates going back. I can tell you I'm not going to be a fan of the stress energy but let's get a little further into the details. Beth what is your age and stage of life. Are you working are you retired what were you prepared me. I I am picking three. We are currently only tell that what they're planning to head back to last, and now we are get doing part-time got here and here actually want global and you know he cares we can both work for that, you know, during what we want when we grace and through these part-time activities with the for the previous business and other things you're doing alongside that.

That's a never enough to cover your lifestyle in a monthly basis, correct okay and would you worry able to put away from the sale of the business roughly currently out about one point doing okay okay 1.5 million and you own your home free and clear. And what's that worth correct advocate cutting out all the got okay and aren't very good what what you will spend on average on a monthly basis and I'm trying to establish you know when you're not working anymore what your going to need each month over and above Social Security or let's start with the gross amount of what we need not yeah based on what you're currently spending today and then we could take a percentage of that I would pay probably out and monitor wow that's it. See fairly modest lifestyle. They really do try to yeah okay well I guess here's the question.

I mean I'm not a fan really of the strategy at any point, but especially in your situation and you guys are really in a great spot where you should be thinking about or have the opportunity to be thinking about dialing back your risk because we don't want to take any more risk than we have to. We want to take what you been able to amass through hard work and the sale of the business plus the diligence and with which you've exercised using God's money to be able to pay off his home and own it, free and clear you through your modest living you require very little on a monthly basis and you're certainly probably covering that and putting some away just through these odd jobs that you have and when you stop working entirely.

What you could actually do right now. You could fairly easily throw off 50 or 60,000 a year now from the 1.5 million and you know way over to subscribe what you need for your monthly budget.

So adding a level of risk by taking on a mortgage, only to turn around and invest that when I think you should be dialing back the risk level in answering the question how much is enough right now I think is entirely of the other direction. Now not saying your investment advisor is you has the wrong motivations, but you do also have to consider that when he or she gets the portfolio of this massive mortgage that he or she would be deploying for you there and earn a fee on it so there's an incentive for you to do this and I just think the loss of the peace of mind and flexibility, not to mention trying to outpace the interest rate with the stock market that's probably going to see much tempered returns. You know over the next couple years because of where we've come from, how high the markets are right now, and given some of the headwinds we have notably inflation.

Most experts are saying yellow equities are still the place to be stocks but were not to see the gains we have seen in so those modest returns compared to the interest on the mortgage. Not to mention the fact you're taking on a bunch of debt unnecessarily. I just don't see the risk reward paying off.

And again I think you all could be looking at an opportunity to stay very conservative. If you want to have a risk portion of your portfolio for some growth because you are still young. That's fine.

You have plenty of resources out there to do that is a portion of the $1.5 million portfolio and there's no need in my view, to take on any debt just to try to get an extra one or two or 3% a year over and above you know that the interest rate on the mortgage so that mean react to that.

Give me your thoughts. But I just don't see any upside hearing you and get free for quite a while. Here I I get the very nearest to get back into any kind of get everything now well basically yeah there to build a portfolio with the proceeds of this mortgage and there's gonna be a portion that will be in a very conservative stable investments or even money market or cash in there just to set an automatic draft right out of that account into the to pay the mortgage lending you have to factor in as this is gonna be a taxable account, so all the gains store any gains that they get are all good to be taxable, which is gonna further erode any kind of you know upside you have and again I think you need to be so conservative in this point in your lives just given where you're at and you don't have a need to be aggressive, that you were not talking about a whole Lotta margin there for you all to realize we are talking about you taking on a considerable amount of risk beyond what you are right now having a home free and clear and perhaps the only winner is the advisor that's charging the fee on let's say five or $600,000 a year. I just don't like this and I really would question even the recommendation personally. Okay. All right. My question.

We appreciate your call that you want to kick it around or your husband doesn't he put in the future. Don't give us a call. But God bless you. Thanks for listening and we appreciate your time today. We got some lines open today 800-525-7000 work I go ahead and pause and take just a brief break, but again whatever's on your mind today we'd love to tackle it.

Maybe it savings or investing as Beth wanted to talk about. Maybe you're considering that prioritizing paying off the whole mortgage you're thinking about giving wise whatever's on your mind today give us a call. Love to talk about it. Your story and see if we can pull some principles of Scripture 800-525-7000 for joining us today and moneywise live on last taking your calls and questions.

We got some lines open 800-525-7000 take the opportunity to remind you of your part of the moneywise family and you've not given to moneywise. We would certainly love your prayerful consideration of donating to the ministry, we do what we do each day bring you this program. Our coaches are, after all the content on the and RC kids through your generous support.

It requires our listeners supporting this not-for-profit ministry and so beyond the giving to your local church. If you would consider a monthly one-time gift would certainly be grateful whatever amount might be able to do just head over to moneywise, click the donate button and I'll say thank you in advance and head back to the phones today. JC is in Miami and JC what's on your mind will Rob let me first thank you for your program and and segue the de it just made. I was able to work with TD Ameritrade and to get them to set up for my RMD an automatic monthly check to to the radio station to moneywise and working out well working out very very well. The reason I'm calling is it's one of the baby too good to be true at the local paper, the financial institution that is purporting to pay 2.7646 months. The I called the organization the basically their CD brokers and they shop the country for CDs and probably have a markup that so you will or or exchange them so I didn't know if you had any experience with so-called brokers.

Yes you know and and I'm I'm a fan of these in the right situation to me. Basically these are CDs. As you said their purchase through brokerage firm or broker you know and their similar to traditional CDs but you know they're sold and bought on the secondary market. So one of the benefits is that that means you don't have to wait until the stated period of time ends for the CD because that secondary markets allows a buyer and seller to come together, which means once you've purchased into these brokered CDs.

You can also get out so they have liquidity which we don't typically think about in terms of CDs don't. The other thing you'll see is often not always, but often you will have higher rates but you do have to shop around. You can also get a bit more FDIC insurance if you wanted to put a good bit of money. Typically, you'd get the 250,000 per depositor per bank because it's in a brokerage firm using perhaps multiple banks you can get that number up and still have everything in one account. Now they could potentially lose money because of the secondary market. So if you know is if you go to sell it. There's a chance that you could sell it for less than you paid so it's ideal to keep it until its maturity rate to avoid that you do also have to check JC the fees because although you wouldn't have an early withdrawal penalty in these brokered CDs. The fees for selling them can end the interest savings. Although the face value rate that you're being quoted. You may not include the fees that go into it. You also have to look at whether there callable so another yard some situations.

These CDs can be called back before their maturity. So I think you just need to understand what you're getting into understand what the fees are and how that's can impact the return you're being quoted and why you're doing it because of you're not can hold to maturity. Again, this idea of it being sold on the secondary market put you in a position where potentially you know you could lose money even though the underlying investment is protected by the FDIC insurance that secondary market creates the potential for loss even though it would be on the more conservative end of the risk spectrum. Does that answer your question though it does, and it does me.

Help me evaluate the risk factor in the cost back. The markup factor but to pursue that sewer does.

I just want to comment as well. I've been using the Larry Prickett Buddy Batterson CD-ROM for about 10 years and the envelope in the envelope system using the CD on the computer. It works just fine, but I did. I may explore your Apogee without love for you to do. And here's the thing.

We've got a lot of folks it's been amazingly been connecting with dozens and dozens of all the money.

Not that they're all but the software is old money matters CD-ROM users that are saying it's not supported anymore. We love it, but it's antiquated and we'd love to walk with you in that process we do 30 minute workshops. Three of them a week and we could actually help you understand where it's similar where there's some changes and actually help you migrate over at the very least, just to test it out JC so if you download the app in the App Store.

Be sure to sign up for one of those free 30 minute sessions. Tell them your money matters user and will walk you through everything you need to know so you can see how it really is a modern version of what you have been accustomed to their all the way back to Larry Prickett okay great thank you very much, Jeff hey, one of the things you stand. The line will get a six month Pro subscription not Emile get your information and will get that for you.

Just as our gift for you to get started and check out to the moneywise that there's automatically a two week free subscription trial. But will extend that JC for you, up to six months. Thanks for your call today. Thank you for your getting to moneywise media were certainly grateful using qualified charitable distribution is a great way to go. Folks if you check that out. It's an opportunity. If you have RMD every year to do your giving satisfy the RMD and have no tax which means you get a bigger deduction and God's work through the ministries your supporting ends up receiving more money to beautiful thing qualified charitable taking your calls and questions just after this break 800-525-7000 grateful you join us today. I moneywise live Rob West taking your calls and questions today applying God's wisdom to your financial decisions will be going to Julian Hollywood is in Miami. Pam is in Indianapolis.

But first, Glenda is just north of me in Nashville Tennessee and Glenda, I can help yes ma'am terrible they should know dollars sure Linda would you consider this 26,000 your emergency fund or has it been earmarked for some other purpose. It was not wild about well graduate but not paying their very good all right do you know what the interest rate you're earning annually there in that CD. Now I actually doubt okay I will check that out. You know, does the credit unions and I said CD, a med savings account.

Your credit union credit unions give typically have higher interest rates on their savings over and above the traditional brick-and-mortar banks. I prefer just because nationally the credit unions and are in different regions and pockets and you know, one might have a phenomenal rate. In another might be lower so I tend to recommend here on the program. The online banks. Just because you know you can access them no matter where you're at and so for example Marcus one of my favorites., which is the retail arm of Goldman Sachs they're paying half a percent. So, .50% so you don't. That is not a huge amount, but it's better than you know .02 or 04 that you might see in a traditional brick-and-mortar bank and those rates will be moving up as interest rates move up so I would look at either.

Marcus capital one 364 Ally Bank, you'll typically get about half a percent maybe a little bit more with any of those three. There's no fees.

They have a great great website. You can link them to your checking account and it's gonna be FDIC insured so it's it's protected, but the starting point.

Glenda is just to see what you're already getting at your credit union because if it's the same or more, you might as well just stay there with what you have. But if they're not paying a whole lot. Then I might consider moving to one of the three online banks that I mentioned.

Does that make sense yes ma'am the program if you just go to our website moneywise care within a couple of days. This program will be back up and if you give your information to my producer Amy, I'll make sure you get a link to this as soon as it's available. We can send you an email.

Does that work okay yeah no problem I will will get that information to you. You just give us your name and an email address and will get right out to you Glenda thank you for calling today. You drive safely to Indianapolis, Indiana Pam, thank you for holding today. How can help. Thanks for your ministry. I had first wanted my hurt on the radio about meeting title and scary like I going to keep stopping to get your title and mortgage your house and you don't even know it. So I look into you know about yeah now title insurance is something that you absolutely have to have and if you you you typically got it when you bought your home or took out the mortgage, which are probably referring to is something that we've seen a lot of advertising for lately, which is titled lock insurance. Does that sound like what you are hearing now that I'm hearing you okay yeah so that's different and completely unnecessary claims to protect you from someone signing a false deed transfer at the county courthouse.

But here's the thing you can't lose your property. That way, because the transfers invalid if the identity thief takes out a loan on the property and the lender attempts to foreclose, which they probably wouldn't even try. It wouldn't stand up in court because it would be unlawful foreclosure because you're the rightful owner and you didn't sign anything. It was transferred fraudulently. You could also check with your county because a lot of times that information is available online so you can monitor that yourself. But this idea that you need someone and that it's even possible to quote unquote lock your to you the title to your home. It is really a faulty idea and paying for that service. On top of that, I strongly discourage you from doing so I would just respectfully pass, but title insurance that protect someone from challenging your ownership or preventing you from access or using your property through other means such as denying an easement that type of thing absolutely need to have it but you probably already do. Does that make sense yeah I sure do get the redhead out 12,000 on my Harold on 64. I want to get paid up since I cannot get cut down my hour to retire so I see advertisements for zero fees to refinance. Usually they want you to borrow more than $12,000, but I thought I could borrow it, turn around, put it back on the mortgage.

I haven't looked into all the details but you know what to look for and should I worry about that my is your current interest rate them. It's like 2.9 yeah yeah no I don't think you can want to do this, you're not going to save enough in the interest number one of the balance is so low it's can be problematic for you to do it for probably any less than 50,000.

And there's gonna be a. Prior to which you can even pay that down, you know, in some cases and you can be paying interest on that and your balance is low enough and that interest rates phenomenal that you're just not going to see the benefits. I think your opportunity right now is just a focus on obviously getting that mortgage paid every month. But then, to the extent you have a surplus, just adding that to the monthly payment getting that principal coming down, you'll get that paid off in no time at the cost and complexity, and really the challenge with the size of your mortgage that you'll face, and even getting that refinance is just gonna be cost and time prohibitive.

Okay okay that we need some worry that if I make sure I'm doing the right thing.

It sounds like you are, but I appreciate you checking with us and think you certainly headed in the right direction.

We appreciate your call today about folks we've already covered quite a bit of ground today are really looking at a host of topics from refinancing to saving and investing paying down that home mortgage and that's what we do here on moneywise each day where slides open. If you have a question. You haven't gotten through today would love to hear from you. 800-525-7000 eight before we had to our next break. Let me just remind you quickly. We do have moneywise coaches available that would be delighted to serve you. These are men and women who have been trained to really help you develop a spending plan teach you some of the biblical concepts around money that we talk about here on the program.

It's their ministry.

They love this and would be delighted to journey with you and answer questions just to our website to connect with a coach there's no cost for the coaches time.

It's their ministry to you or maybe a small charge for the workbook bidding on what you just click connect with a coach when you go to moneywise live: moneywise live stay with a still much more to come on this edition moneywise live right back. This is moneywise live are so glad you're with us today around Westinghouse.

This is the program we believe God owns it all.

Earth is the Lord everything nurse managers and money then becomes a tool to accomplish God's purposes. It's not an end. It's a means to an end. And guess what, when that end is something other than us. It's an incredible opportunity for us to be a pipeline into God's activity. So God's provision doesn't stop with us on this program. We also recognize that God's word is replete with wisdom, that we can apply to today's financial decisions there's incredible timeless principles and those 2350 versus the tell us we should spend less than we earn we should live with contentment and avoid debt. We should have some margin precious oil and treasure in the house of the wise, we should set long-term goals, and perhaps above even all of that is that we should give generously and as we live that way it brings freedom and joy and contentment and peace of mind that sore after here today so we can serve the Lord more fully. Thank you for joining us in that journey. Let's head back to the phones today in Miami Florida is Louisa how can I help you yes thank you for taking my call. I am $68. I was intended to retired and I changed my mind and I'm going back to work full-time and man. Now I receive money from Social Security about 2600 a month plus I have $40,000 on my IRA at work and I'd like to know since I'm 68 and I'm receiving my Social Security is not a problem if I continued to work full-time know it isn't Louisa because the rule says that your benefits your Social Security benefits are only reduced if you sign up to receive them before your full retirement age, and then you have to earn above $18,960 a year. At that point, your benefits will be reduced for a dollar by a dollar for every two dollars you earn, but none of that applies to you because you've reached your full retirement age, there's also a second benefit, hereby you continuing to work if you earn enough to impact what's called your high 35, meaning your highest Social Security eligible wages during your highest 35 years of your working life, then you're going to replace some of those years. Among the 35 that you earned less, and by doing that you'll actually see a bump in your current Social Security check. Now if you're not earning an amount annually that would be higher than any one of those highest 35 years of earnings you have from the past that it's good to stay right there. The same certainly won't be reduced, but you actually have the benefit or the opportunity to increase it if what you're earning over a 12 month period is higher than any of those high 35 that were used to calculate your current benefits.

Does that make sense to you know your original question, you can continue to work well, so I can work with no problem. Yes ma'am and that the work safe for me to 40,000. Like take it out and maybe where is it currently is. It invested or is it just in a savings account. What it wears no my job IRA. Oh it's in Iraq okay is it is and in investments. Okay, you know, it just depends on where it's invested and whether the investments that have been selected are appropriate for your age and risk tolerance.

So I would either have somebody at your job, who is a plan administrator, somebody who works in HR who could connect you to the representative from the brokerage firm that's holding this that can advise you if not you could connect with a certified kingdom advisor there in Miami and I asked that they review it. I don't have a problem with you leaving it there. In fact, if you don't need the money would be good for it to continue to grow, but I'd love to have somebody look at it and say, is it appropriately invested for somebody 68 who still working and your do we need to take less risk and and get more conservative that would be the question that I would want somebody to look at. So if you need a certified kingdom advisor there in Miami. Just go to our website moneywise and click find CK. We appreciate your call to Cleveland, Ohio W CRF Ed, thank you for your call today's or basically said about them quite sure that I try to make it quick. Okay, one of my credit card. Credit cards was hacked and them being the city card on the brand name or whatever.

Like basically they notify me immediately. They did a great job that it was about $3100 in fraudulent charges that were obviously no court because they asked me if I made them my signal and it will bond okay so my question is can the merchants who are archivist services and money can they take any action against me, and what will this affect my credit rating.

I know this shouldn't have any impact on you, you are notified of its you confirm that they are in fact fraudulent. Sounds like that was done on a timely basis and in just about every case that's all you need to do.

The issuer will investigate it and once they are satisfied.

The charges will be removed from the account.

In the meantime they would obviously and I'm sure there you have issue you a new card with a new number shouldn't have any impact on your credit score or your credit report. You can also go to identity to report the hacking and get more information but tell you probably don't need to.

It sounds like your credit card company did exactly what they needed to do and you responded on a timely basis, which is the key factor. Merchants can take against regular may say they know they want the money regardless how None are not that that's really between the credit card issuer and the merchant. The fact that this was done fraudulently and there won't be any impact on you whatsoever. I had thank you for going today. God bless you, sir. I let's head next to the south to Hollywood, Florida hi Julie, how can I help you all got out on three years old then 81 Beaumont oh I do whatever but now I have 5 to 10,000. I just want to get no more savings.

I want a family more.

I know what I like is not on yet and is not what would you advise you what I forgot.

Yeah the challenge is in order to get more than a year and I realize why you're not satisfied with what you're seeing with CDs or savings accounts, but in order to get more. You can hand have to add a layer of risk to this and I think in order to do that prudently you need to have a time horizon of 7 to 10 years you know if you want to avoid losing it among the potential of losing money.

Again, it doesn't mean it's guaranteed.

Even if you wait 7 to 10 years, but we typically don't want to invest on a basis shorter than that because in any given period of time. We could never session the market could be down quite a bit and you could lose money.

So I guess that would be my first question is is this 5 to 10,000, over and above your emergency reserves and secondly are you willing to lose money.

The are you willing to take risk and invest this with the right time horizon. But my direct. I might kind down I know I'm very, perfectly I think Lori is not not not that not yes, well, there is it the only way you can guarantee the principal is not going to be affected is by staying in something that's FDIC insured like a savings account or CD. Is this really the extent of your emergency savings or do you have an emergency reserve. In addition to this 5 to 10,000 that violate their FRA library time that I have a 403 God I cannot. So I did cave in on you a rainy day that I don't have to keep going well if if if all of your reserves. Though Juilliard are tied up in a retirement account.

I'd really rather you keep that estimate we typically say you know six my years at your age and stage of life.

I'd love for you have at least six months worth of expenses in a liquid guaranteed account which is really just a high-yield savings account so that's gonna be my best advice for this money given that the rest of your money is tied up in retirement accounts and probably already invested so I use Marcus capital one 360 or Ally Bank, you get about 1/2 a percent a year. It will be protected. You won't lose any money on the principal you won't learn a whole lot but it'll be there if you needed and that would be my preferred approach quickly to new Berlin, Wisconsin, and John. We just have a few minutes today. How can I help you I just want accurate.

Your advice I got through deferred annuities and I'm looking at those to reduce caught the plan is to hold those all command Lipo charitable because the amount of deferred income tax, but do you have any suggestions for any low load on I'm currently with Transamerica and Fidelity and just eye twitching with infidelity. IPI can reduce my mortality and expense ratio from .8 .1, so any other suggestions that you would have. It's a great question John, I think you're headed in the right address direction and asking the right questions and fortune.

I can't give you any specific recommendations for annuity contracts over the year.

So what I would encourage you to do there in Wisconsin is connect with a certified kingdom advisor, perhaps a couple of them and asked them to give you some other alternatives to look at as you look at reinvesting these annuity contracts for the future. I think they could give you some great ideas just go to our website moneywise click find the CK and connect with least to that would give you an opportunity to have some other alternatives.

We appreciate your call today.

John apologized for not having more time. That's good to do it for us moneywise live as a partnership between Moody radio and moneywise media want to say thank you my team. Eric Tidwell on phones today Amy Rios producing Dan Anderson, engineering Jim Henry providing excellent research. Thank you for being along with us today trust you found some value here come back and join us tomorrow but really I'll be look for you that God bless

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