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Money and Marriage F.A.Q., Part 2

MoneyWise / Rob West and Steve Moore
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August 26, 2021 5:18 pm

Money and Marriage F.A.Q., Part 2

MoneyWise / Rob West and Steve Moore

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August 26, 2021 5:18 pm

The book of Proverbs emphasizes the importance of seeking wise counsel.  And for couples looking to improve their relationship with each other and their money, wise counsel can be very useful. On the next MoneyWise Live, host Rob West will talk with Howard Dayton, author of Money and Marriage God’s Way, to ask him to share his expertise on these topics. Then Rob will answer your calls and questions about various financial matters. That’s MoneyWise Live—where biblical wisdom meets today’s finances, weekdays at 4pm Eastern/3pm Central on Moody Radio.

See omnystudio.com/listener for privacy information.

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One listener that stands out that work with recently.

Was this older couple was interested in refinancing eight reached out to a few different lenders in the other credit wasn't the best. I know some of these other bigger banks. You just won't hear back from that which I cannot stand not everybody has the 780 credit scores and never had any hardships in their life. I'll walk you through what you have to do. How can you end up being able to do this refinance. Whether it's 236 months from now back that older couple. We work with them for months and months to improve their credit and we were able to get the loan done. We were saving them hundreds each month thousands of dollars a year.

Finally got themselves into a situation financially that they can handle and they could start saving money each month, saving for retirement at the end of the day they just could not be happier. Which just put a huge smile on my face.

We might one listener that stands out, that I work with recently.

Was this older couple that was interested in refinancing the other credit wasn't the best. Not everybody has the 780 credit scores and never had any hardships in their life. I'll walk you through what you have to do. How can you end up being able to do this refinance. Whether it's 236 months from now.

We work with them for months and months to improve their credit and we were able to get the loan done. We were saving them hundreds each month thousands of dollars a year and they can start saving money each month, saving for retirement, which just put a huge smile on my face.

We like heads United faith mortgage is a DBA of United mortgage Corp. 25 Millville Park Rd., Millville, NY. Licensed mortgage banker for licensing information, go to an MLS consumer access.org corporate and MLS number 1330. Equal housing lender not licensed in Alaska, Hawaii, Georgia, Massachusetts, North Dakota, South Dakota and Utah, and today's version of moneywise live is prerecorded, sore phone lines are not open a word to the wise, from Proverbs 1522 without counsel plans fail, but with many advisers they succeed, by Rob Weston were seeking wise counsel for couples today. We got more frequently asked questions for Howard date and author of money, a marriage God's way that we have some great calls lined up but we will be taking your live calls today because we're prerecorded. This is moneywise law biblical wisdom for your financial journey well. Our guest is Howard date of this radio program, founder of Compas finances God's way of great personal friend of mine Howard delighted to have you back on the program. Great to be with you again, Rob last time you were here Howard we had you answer some tough questions. Frankly from your book money and marriage God's way and it was so helpful that we thought we needed to do around two so if you're ready were going to just dive right in the I'm ready. I'm finally recovered from all those tough questions. So now you can do this stuff in your sleep. I know it and I will get right into the first one we do a tough window for you right off the bat, so give you fair warning.

And here it is.

I have $5000 in credit card debt that my husband doesn't know about reluctant to tell him because I'm afraid he'll never trust me again what should I do that is a tough one but I really appreciate her desire to be honest with her husband and me disclosing this credit card debt is a key for them to experience the authentic closeness Rob that the Lord intends for couples. So the first thing I do is pray.

Pray that the Lord would prepare him to receive this news will the second thing is to develop a plan to pay off the debt in third meet with them personally. Tell him of your desire to be completely honest, disclose the debt in the plan to pay it off to seek forgiveness and ask him if he would meet with you every week for a money date to review the finances together so that this'll so this will never happen again and Rob anytime a couple is faced with a difficult situation such as this one, the one that is receiving the bad news really has a priceless opportunity how they react can either significantly strengthen the marriage or it can damage the marriage to respond with grace, kindness, encouragement can radically improve the marriage and when you think about it. The guilty party already knows their guilty yes of responding with kindness communicates you know I love you like crazy. I want us to work through this problem and continue to strengthen our marriage and don't get historical by constantly bringing the new guilt before the party. And when you think about it, that's really how the Lord deals with us. First John 19 says if we confess our sins he is faithful to forgive us our sins and cleanse us from all unrighteousness and he puts those sins behind his back. If we are genuine in our repentance. He didn't bring them up again numbing the Lord really wants the best for us and he's he set the model on how we should interface with a husband and wife why no financial infidelity happens more often than we realize. And as you said, it's about prayer.

It's about coming to it with an open heart and a true desire to seek reconciliation. To be truthful and honest and work together, perhaps even creating a vision with oneness toward what God has for you and your finances great counsel. Howard just about a minute left before our first break.

Here's another Tuffy. My wife wants her elderly parents to come live with us but I think they should go to an assisted living facility. How can we resolve this issue. Yeah, the key is to pray together daily, asking the Lord to show you both what he wants you to do and I think a lot of your wife. Frankly for wanting to care for her mom and dad now if you're reluctant to have them in your home because she can't afford it. Or maybe you're overwhelmed by the prospect of caring for them to seek other solutions.

For example, you. For example, if your wife has siblings to ask if they can help in caring for mom and dad Bible is very clear. We should honor our parents and that includes in this season of life when their elderly and need our care. This is something that I think greatly pleases the Lord. Well Howard, we still have a lot more ground to cover a lot more questions. These are FAQs on money and marriage God's way straight out of the book by the same title money and marriage God's way by Howard date and will continue to unpack these questions just around the corner. Stay with us. More to come on moneywise live the right. Welcome back to moneywise live Rob Webster hosed along with us today. Howard date former host of this program, founder of Compas finances God's way and author of money and marriage God's way. He is joining us today to answer some frankly tough questions about money and marriage. You know God's design is oneness in every area of our lives with our spouse and that certainly includes money, but that's easier said than done.

Sometimes Howard, we come to the marriage relationship with different money backgrounds money personalities money was undoubtedly handled differently by our parents and then were supposed to find one plan that works for the two of us and it doesn't always play out that way does it know it done. But thank the Lord that we've got his word which gives it's really Rob.

As you know the game plan that the foundation for how we should handle our money.

So in the area of giving in the area of debt them in all these different areas that really gives us clear direction and big part of becoming one financially is learning what God's word says about money and in Rob you do just such a superb job of communicating that I really grateful for you grateful for you as well.

In order to dive into a few more of these questions today specific questions that really relate to money and marriage God's way and next up Howard as this one.

My husband and I both have been divorced and in previous marriages where there was constant fighting about money. What can we do to avoid this in our marriage.

Yeah Rob, as you will know previously married couples often bring the emotional baggage of the problems they experienced during their earlier marriage. So I think that the couples need to know address this issue head-on that discuss the issue with frequent arguments focus like crazy on encouraging each other in creating a culture of celebration rather than conflict in the marriage. For example, you you as a couple may have a half-dozen maxed out credit cards with every time you pay one of those turkeys off celebrate because what we celebrate, we tend to repeat and one of the keys to celebrating is to pick something you really like to do together as a couple. Make it a memory, you know. Enjoy yourself and fortunately what we discovered as a couple celebration doesn't have to cost a lot of money and what a quiet evening alone with your spouse can result in a lifetime of wonderful memories just celebrate when ever you can even the small victories that's a part of what it really takes to make a marriage suite and I'm all for sweet marriages but I love the idea of celebrating also appreciate what you've taught us for so long, Howard, and that is the idea of communication. We know that's key in every aspect of marriage, but certainly in the area of money and your idea of a money date opens up those lines of communication and that is a key piece of handling money.

God's way corridor.

Next question that reads like this. My husband wants to buy a new car every three years. Even though we have to use lots of debt to do it.

How can I show them in black-and-white that we should be buying used cars for cash. Yet Rob is you will know unfortunately many people have card debt their entire lives and according to lending tree, the average monthly new car payments now over 550 bucks a month and just think about it. What if you took that $550 a month invests that from age 21 to 65 earning under 10%, and it would grow to more than are you ready for this $5 million and so I go online to bank raider that you any number of websites out there that have calculators that find the calculator that computes the compounding growth of savings is reviewed with your husband so he can really catch the vision of the financial impact for them as a couple and by regularly saving instead of staying in this mode of pain $550 every single month for a new car every three years and I really encourage folks to develop a strategy to be able to pay cash for their new car. Very practical ways to drive your existing car until it's paid for after you pay the car off keep putting that monthly amount of your car payment in your bank account so it's time to buy the next when it can be done with cash and you can get off that that the wheel of the having to make monthly payments for the rest of your lives. That's great advice.

Howard know you've lived that out personally for a long long time Arredondo.

The next question this one might sound extreme. Unfortunately, it's more common than you might think it reads my wife is a compulsive spender. She waste money on clothes and on her gambling addiction. What should I do yeah 12 is you know will Rob gambling can destroy couples finances yes got to do three things in and out. Give them in order of importance. First lover and that includes praying earnestly for her freedom from gambling, then second, many people need professional help to get free of this gambling problem, preferably from a Christian counselor who can apply biblical wisdom and biblical principles to that of the healing process. And finally, you need to take control of the family finances for her protection as well as your family's protection.

The amount of money available for her should be limited should certainly provide a reasonable budget for clothing interpersonal needs but you really need to take control the rest of the finances and how the way if if it's the husband who has the gambling problem. His wife should control the family finances, providing him with a modest monthly budget for his personal needs and that it's so important to get good spiritual counsel to help somebody get out of the web of gambling. This is really keep our in our just a couple minutes left before you have to wrap up for today. You know I hear from so many couples swear and it could go either way. But in many cases the husband is not a believer. The wife is she wants to be found faithful in giving. He doesn't support her desire to give and she's just feeling like she's not doing what the Lord has asked her to do. How do you help her navigate that. Yet that is not easy and as you said Rob it's very prevalent in many marriages in I would take a slow go approach if she is in a position to earn some money, even if it's your part-time babysitting.

If she's a stay-at-home mom where she can earn some money in and get his permission to be able to give based on the money that that she provides her sheep based on the money that she earns as a first step.

Obviously the best thing over the long term is to have the husband join her in giving generously to the Lord and certainly by prayer. That's key and by exposing the husband to a biblical truth.

And if he's not a believer a book or a tape or listening to this program might have a huge impact on the on the spouse. I know it will will Howard.

Unfortunately, that's all we have time for today, but such wisdom and great godly counsel. I appreciate you stopping by to help folks tackle these tough questions little bit. Rob, thanks so much absolutely will do it again real soon. Our names better guess today you can find his book money and marriage God's way. Wherever you buy your books.

This is moneywise live earn God's word guides our financial decisions will be back with much more stable.

Thanks for joining us on moneywise and I were God's word intersects with your financial questions and were so glad you're along with us today.

Our team is actually taking time off to so don't call in, but I will tell you we have some great questions lined up in advance and looking forward hearing from those folks.

I know you'll hear something that will be of value to you and perhaps in just a moment will take a few of your emails as well. Let's head to Holland, Michigan. Steve, you've been incredibly patient.

How can we help user.

Thanks for taking my call. My wife and I are frequent listeners always appreciate your your sound advice. My my mom passed away last year and we have received will receive an inheritance of about 100,000 along with some investing and saving and tithing on that. We also want to share that with our three kids.

We have three sons.

They're all married, have children and it's in pretty stable situations but would like to give them roughly 10, $12,000 apiece.

Our discussion has been reduced, write them a check and say here you go, or do we kind is just let them know we have something here for you in case of an emergency were just kinda wrestling with how to present this to them and in a sense I think we like to be able to just hand the money over to them, trusting that they will be wise stewards with it or not, so I don't know. We've we've been a note on the receiving end of situations like that before and frankly, the, the funds came out of the blue. We were very surprised and grateful for the blessing that happened so we don't not sure which direction to go with this yeah well it's obviously going to be a blessing to them.

No matter how you doing I would make.

In a matter prayer. Steve just asked the Lord to give you some wisdom. There's obviously any number of directions you can go is coming out any tax consequences to this because it was an inheritance to uses no taxes and in the annual gift exclusion is 15,000 per donor per recipient so you can actually give 30,000 between you and your wife see your fine there.

So I think the question is now or later and are there any stipulations you know as to the gifts always talk about an hour later and I think the key is do you want them to be able use the funds right now and a good bit of that has to do with just your own observations as to their financial and spiritual maturity. Clearly, if there was anything you know going on in any of their lives where you know they were living a lifestyle that was problematic and you could actually end up funding sinful behavior that you know would lead to a something other than a desired outcome, and so there's any hint of that.

You obviously want to withhold that as to not put money into a problematic situation. So I think that would be the first issue I'd obviously you did mention that some good assume that that's not the case.

But if there was something there that might saying that prompted in your thinking. You let me know. But then, secondly financial maturity as to the decisions they are making in just your observations as to their ability to handle that. Give me your thoughts. Well, I believe each each of his sons all their all three boys, each of them are intelligent, smart and living we feel good life. I know that two of them are definitely believers. The third I don't think so, but he is stable, a good father and we feel leading a good life. But obviously there's that other aspect of his life as well. But I think you know they're there each in different stages as far as their needs might be.

None of them are destitute by any means they all are in stable situations. Income wise, so it would be really something we would like to see them do something with maybe long-term or something like that but then are we dictating what they should do with this and that is where were, wrestling yeah and I think clearly, you're the one making the gifts he can do whatever you want, but there is that element to it where you know I think you need to ask yourself, are you okay with whatever decision they would make, and you need to be able to answer yes to that before you make that gift if they were decide to use it on a really nice vacation in your Norton improvement on the house in the short term versus investing it for the future. Would you be okay with that decision. I think you and your wife need to talk through that before you would be in a position to make that gift. If you are okay with whatever they choose and you just cited their maturity and stability in disk and where they're at in their lives that I think there's something to be said about you all just making that, in a lavish gift, perhaps with the insane are in our desire is that this would be something that you have into the future. I think you know they would be good for them to hear that from you to know that that's you know going into it that your desire. Now they become the steward and have to decide what they do with that information, but I think making that known to them that that would be your hope that the end of the day you're going to leave it up to them as to how they use it, no questions asked. The I think that would be certainly one approach, there would be nothing wrong with that. I think the second option is just deal. Is there something creative you want to do with this.

You know, i.e. promoting generosity so you know if that's if it's 10 or $12,000. Maybe it's $10,000 as a gift and $2000 and a donor advised fund where it's already been given and needs to just be given away so you can set up a donor advised fund where they would then be charged with you know distributing that $2000 to nonprofit ministries and charities that would be near and dear to your heart that would be a way to counter foster you know some really exciting and fun giving that's on the heart of God. Clearly when we look at Scripture. So I would probably go one of those two approaches, but I do think you and your wife need to kinda wrestle through this and just say are we going to be okay. No matter what they do with it.

And if the answer is yes, then I like the idea of just making the gift making your desires known on the front end so they have that and then can weigh that as they make decisions. But at that point you need to be willing to let it go and trust that there than to make the right decision and if you decide you want to add a given component to it to talk to our friends at the National Christian foundation, but a donor advised fund in CF giving Steve Hamel.

I will talk a bit more of the year. This is moneywise live. So glad you've joined us today again for taking some time off, so don't call in but will be back with much more just after this. Thanks for joining us on moneywise. I live by God's wisdom to your financial life.

They were taking some time off today. Our team is not here so don't call in lined up in advance that I know you'll enjoy working to begin today in Florida. In this segment. Welcome to the broadcast I can help you will not allow any buddy, I do as well. I just saw him the other day and he he gives his best to tell all the moneywise listeners and I appreciate your kind remarks wall having a credit card that she wanted to couple credit cards that had hidden. I basically used his credit card, maybe just one nuclear store that had their I'm not anything them so you get rated then and how often do you delete line are hiding whole thing yeah well you know I think the key is whether or not you're concerned about a temporary drop in your credit score mean that's what most folks are asking about when asked about closing a credit card because it face value. The idea that you would have these cards sitting around the no intention of using is not a good idea because you gotta keep up with the account you gotta monitor them to make sure that nobody's compromise the accountant's charging them for unauthorized fraudulent purchases because if you don't report that on a timely basis, you may end up being liable for it. So you gotta keep up with him and I think just for simplicity sake we all have enough on our plates, let alone tracking accounts were not using that. We probably want to get those close now. The reason we may want to spread that out over time or start with the accounts that have been open most recently is just as a result of you, where is your credit score you already have a high score and you know therefore if it dropped 30 or 50 points temporarily and then it came back up know if you months later. That's not a big deal, especially if you're not out seeking credit than I would suggest Glenn close and let's be done with it. But if you're kinda right on the borderline. You know you need a 640 and above to qualify for a loan that you're looking to get in your at 655, you know you it's probably not the time to go closing a bunch of accounts because you could see a drop and then that could hurt your ability to qualify for the best credit when you're out there looking for a loan so I think that's the driving factor here.

How many cards are you looking to close Pam Bentley for I hate or rental property in getting ranking now paid, for everything it takes for studies nylon thing I'm out looking to get and down on just trying to delete and get rid of. Okay, then I just go enclose them all down right now and again.

If you monitor your credit score, you have a free service from a credit card that does that for you may get alert that your score has dropped 30 or 40 or even 50 points. That's not a big deal. It'll come back. The key is that your non-time payer every month and that you have just know a good financial foundation under you so I wouldn't be too concerned about and I think it will give you a little bit more peace of mind and know those are out of the equation. They're done and you can forget about them and cut up those cards so hopefully that helps you really appreciate your call today and look forward to hearing from you again real soon counties in Fort Myers County. How can I help you, thank you for taking my call.

I am going to home mortgage refinance option. I'm just trying to see which one would need more so the first one is on at 2.625% with the client fee of $1300 plus: clothing, ending the other one is 2.25% with a finance and keep your mind on P .20 $805, can you give me a recommendation which one might be the better deal yeah well you could run the numbers just to see whether or not you know how long it would take for you to be quote in the money for you to buy down that rate, I typically would say let's just find the lowest rate possible that you can with the lowest closing cost unit without a lot of upfront front fees to be right now. You can be looking at something you just under 3% without a lot of cost and were you not buying down the rate but you know you're only spending 1 to 2% in terms of the overall loan value toward closing expenses is one of three in 2000 alone were talking about your three to $6000, and as long as you stay in that home for at least 5 to 8 years and you don't extend the term and your saving at least .2 point half on the interest rate. The net makes a lot of sense because you'll end up paying back those costs and over five or six or seven years and year. Then from that point forward, you enjoy the savings on the interest until the end of the loan and you'll save thousands and thousands of dollars in interest is, if you stay in the home until it's paid off. The reason you know that I don't love the idea of buying it down is your life calls right and so you may plan to be in this home a long time but if you end up moving in on you bought the interest rate down.

That's just more upfront expense that we have to wait until you recoup until you start realizing some benefits of that refinance now if you plan to stay there for 30 years or let's say you're doing it two new 20 year mortgage and you actually stay for 20 years and you run the amortization schedule based on you buying down the rate on the front end and you do in fact take it all the way to the end. You may find or you probably will find that you're actually gonna save some money interest in you can have them give you that comparison to show you. It's just that your for most folks spent a lot of money up front and we just don't stay in homes these days for that long. Does that make sense to you. I think we lost to Connie but I appreciate you calling today.

Hopefully that's helpful as you think about this. I might encourage you to get 1/3 bid just because I like the idea of getting three heads get one from your current provider your current lender get at least two from online banks go to bank rate.com to get the very best loan programs that are out there with the very best rates and I think if you do that and then not compare the three again with the idea being you want to understand. Are you getting today's best rate based on a credit score of 740 or or above which is gonna be just under 3% with no more than 1 to 2% in closing costs. That's a good mortgage and I would certainly consider that so we appreciate your call very very much of folks that we've got to just a moment before next break. Let's take an email. We haven't done that for a bit. If you have an email question. You can always send it to us questions@moneywise.org and will try to get it on the air. This question comes from Michael and Jan and Michael, just as simply should I pay off my student loans. Before I begin long-term savings, and here's what I would say that I would be well on your way to paying down your student loans before you start contributing to your retirement account.

What I mean by that. Well if you're in a position where the you've got the monthly payment fit into your budget and you can have a target to pay those student loans off within 10 years that I would say yes, go ahead. Start by putting at least the matching portion in your retirement account to take full advantage of that dollar for dollar match. If you have that that's free money.

You don't want to pass that up and then I think you have a choice. At that point you want to add more to the retirement account or do you want to accelerate that payoff. I think you could go either way it's really just something you need to pray about and develop conviction about would be nothing wrong with saying we want to get out from under that debt. As soon as possible for no were okay with a 10 year payback you want to increase our retirement.

Ultimately, your target for retirement is 10 to 15% of take-home pay Jenna Michael, thanks for sending your email to questions@moneywise.org pause back with more of your calls and questions just after this moneywise live on Rob last as today is taking some time off today so don't call Lynn but we have some great questions all lined up for you to get a lot out of this were to talk about whether universal life sentence for kids working talk about how you use a health savings account to supplement retirement. But first down to Chattanooga, Tennessee Tim, what's on your mind today.

How can we help user Michael short and on hired and my question is if I'm not on whatever what you want to get year on the whole thing in order to make sure that everything flowed. Yeah, that's a great question because obviously you can have some taxes that you need to pay on that money and so you want to make sure that that is covered.

As you pull that out so you can net the amount that you need. So typically would be looking to make about 5% annualized on that portfolio so that you can easily take out that 4% cover any and all fees or expenses. Keep in mind you, if you have an investment advisor in there, there's can be a cost related to that, and then he had any taxes that are due as well. So if you target do you know a 5% return if in some years you know it's a six or seven, and other years it's down the many ideas that over time that that's gonna balance out to a 4% rate of return typically would like a 7030 portfolio were 30% is in stocks and about 70% of that is in fixed income or bonds in the idea would be enough. You are hundred percent invested in stocks. You know, we would say that you would want to be thinking about you being able to weather of 30% downturn in the market and the hour 35%. It also when you look at that getting that exposure down to only 30% in stocks. You're at that point were talking about, much less that you would be weathering on the downside, you're probably about 10%. So even if your portfolio during a period of time or the market was declining. If that portion was down about 10% for the overall portfolio that's okay because you would wait that out and let that money come back without selling anything or doing anything to cover that and then you'd live on the fixed income portion. Obviously, during periods where it's doing quite well you know then where were looking at your realizing some of those gains and using that to supplement the portfolio. So those ups and downs over time should even out to where you can cover that 4% of income that you taken out and make sure that you know all the expenses and taxes are paid. Does that make sense?

Try it out. Thank you very good Tim, thanks for your call today. So we appreciated. Let's head to Cleveland, Ohio, April how how can we help you with HSA's today call your and I am interested in finding out I don't under stand how to use an HSA account to maximize retirement saving.

The reason I'm asking because I'm in my early 50 thing to dine and I need a way to turbocharge this ability give you a good idea of where I am. I even though I'm in my early 50s that they like the Lord is leading me to attend medical school so I'm in the middle of Mac to flux and I want to make sure I do this right very good but I think the key right now. April if you feel like you're a bit behind on long-term savings is just keep your lifestyle at a minimum, the best you can. So you have as much surplus as possible and make sure you keep giving. Don't take on any debt to the best of your ability and take that margin and save save save. Now you want to get that in tax-advantaged vehicles, which is going to be either a 401(k) worker of at least an IRA.

A traditional or Roth if you're self-employed, you could use a separate IRA but an HSA is in fact another way to do it. The key is you really need to be fairly healthy because you don't want to be using that money a lot and you want to build a max out your contributions but if you can do that, then the amount that's left over at the end of the year when even before that if you've built up a surplus can be invested in mutual funds and other vehicles so that money is growing. Now you want to make sure you keep enough money liquid in the account for your annual healthcare expenses and you can liquidate positions as you need to, but you generally want about as much as you think you'd need in a 12 month period. The rest you invest now here's the key. Once you reach age 65. The HSA behaves similarly to a traditional IRA you take withdrawals out of the HSA for nonmedical expenses. Penalty free. Now taxes may still be applicable to your withdrawal amounts similar to traditional IRA withdrawals but you avoid that 20% penalty from the IRS. Now the withdrawals for qualified medical expenses, which arguably in that season of life may be your biggest expense will still be eligible for tax-free withdrawals. As you look to pull that money out there with contribution limits. You've got to have a high deductible health plan in place in order to qualify for the HSA but as long as you do, you can put in 3620, 21 for an individual 7200 max for a family so you know that's the idea behind it where it's this additional savings vehicle that can be invested with tax advantages. Assuming you're not using up what you put into it. Each year you know for your medical needs any given year.

Does that make sense to you but I also wonder how the end of the year to be able to because it from what I understand, you can only access the funds for medical purposes.

So I'm a little bit lost.

Can you how well you can yeah sure, you can only withdraw them for medical purposes, but that doesn't mean that you can invested so when you make contributions into the HSA generally through salary deferral either an employer portion or an employee person. The portion that you elect that goes into the HSA and then you would just typically log into your account online with whoever your plan administrator is the custodian of that of those funds and you're not taking any money out like you would if you needed to pay a medical bill. You're just taking the balance in that portion that you don't think you need in a given year that you want to invest, you would just directed right into those investments inside the HSA so the money is never leaving the account. It's just that you're redeploying it in investments inside the plan similar to what you would do in a 401(k) or an IRA you not taking the money out. You're just investing the money that goes in doesn't make sense. Thank you. You're welcome. We appreciate you checking with us and I will look forward to talking you again real soon. Thanks April. Let's head to Greenacres, Florida.

Jennifer's up next.

Jennifer, how can we assist you. Thanks for taking my call. No big difference in my day-to-day life like six years old and open. I wanted to open an account and I opened it and and the defendant placed life insurance but then when I call her back in a couple years later, they said all it's a universal insurance.

So what universal insurance means yeah well universal life insurance is also called adjustable life insurance because it offers some flexibility.

You have the ability to reduce or increase your death benefit and pay your premiums at any time in any amount with some limitations. But the idea is it's a combination of a life insurance policy with the savings vehicle that the question I guess I would have is your why do you need insurance on a child you. You can usually get as a rider to another policy a small burial policy if you wanted protection. You know, for that you are that type of event that could occur, but other than that, you know, typically I don't recommend it. I'd rather you get a very inexpensive burial policy and then take the difference in invested not through an insurance product through another type of account. If you want to save for your daughter's future yard look at a 529 plan for college or another type of investment account where you can see that money grow. But again, not inside an insurance product where there's a lot of fees and commissions, but with the insurance portion itself.

I guess I would just ask you, why do you feel like you need right no time but I opened Primerica 529 for her and and when I wanted one from my bankers life.

I turned me down and any candidate didn't want to give me an insurance so I turned it on her, but then I opened Primerica and D. They said they would put Savings for me so I have a 529 for her and that savings from the late crime America and then we get now. I wanted to know should I I don't know how much I have endeared to put it out yes you would want to just call and ask if there's any cash value that's accumulated and when you cancel the policy.

That's what you decide to do, you would get that back and then that policy would lapse and then moving forward. I think the question is just where is the very best place for you to invest for yourself is probably going to be starting with an emergency fund in a high-yield savings account, up to 3 to 6 months expenses and then beyond that, for the longer term for you, I'd look at a retirement account like an IRA or 401(k) or 43B and then for your daughter. It's probably going to be a 529 specifically for college.

There are probably better plans out there better 529 plans than the one that you're in and the way to evaluate that is just to go to saving for college.com you can look at the current plan year in and compare it to other plans and other states to see if you can do better, and I suspect you can in many cases you be able to roll that over to the new 529 so I hope that helps.

I appreciate your desire to save for the future and that be thoughtful about how you manage God's money. We appreciate your call today. Let's go do it for us folks moneywise live is a partnership between Moody radio and moneywise immediately say thank you to my amazing team, Deb Solomon, Dan Anderson, Jim Henry Amy Rios and I were so thankful for what they do each day to make this program happen.

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