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Downsizing for Retirement

MoneyWise / Rob West and Steve Moore
The Truth Network Radio
August 18, 2021 5:08 pm

Downsizing for Retirement

MoneyWise / Rob West and Steve Moore

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August 18, 2021 5:08 pm

Folks are always asking, “How much will I need to retire?” And of course, the answer is—it depends on your needs, lifestyle and one more important factor. On the next MoneyWise Live, host Rob West will talk about that other important piece of the retirement puzzle. Then he’ll answer your calls and financial questions from a biblical perspective. 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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We find I sound like a broken record. I been doing this for 18 years. I've never seen a market like this in my life values have generally been skyrocketing. The last couple of years with interest rates being so low. I actually seen refinances were people are able to cash out the newly found equity in their homes to home improvements, whatever it may be and still save money per month compared to what their prior mortgage payment was so it's worth a shot to give us a phone call and one thing I can promise at United faith mortgage is we will not be pushy. It's one of my biggest pet peeves I can promise you we will not be that way. I like to see it is my job is to present you with a few different options.

I step back. I let you decide and I'll let you call me when you want to move forward. We like folks are always asking us how much will I need to retire. That of course the answer is it depends on your needs, lifestyle and Rob West. The other important piece of the retirement puzzle is how much are you willing and able to cut from your budget will talk about that first today will take your calls and questions on any financial topic at 800-525-7000: 24 seven 525-7000. This is my wise life for your financial journey just about everybody's income during retirement. So it's a good thing that many expenses also dropping your so-called golden years of the experts will tell you that you will need at least 70% of your working income when you retire wise, less well because your transportation, clothing and dining out expenses mostly for lunch, drop considerably when you're no longer working. That's all good but the problem is. Studies show the average retirement budget is only about 60% of working income.

So if you're working and making $50,000 a year. You'll need 70% or 35,000 in retirement. But if you're on track to generate only 60% of your working budget from Social Security and income generated by your investments you will be 5000 a year or more than 400 a month short of your estimated living expenses.

That means you have to work longer to generate more savings that generates more retirement income or continue to work part time to make up that $400 difference unless you're able to cut your retirement expenses enough to close that $400 gap, or at least make it smaller. Now how do you do that well let's start with the one that's probably the most obvious it's the big house you raised your family and but which is now largely empty because they've all moved on and have their own houses, but do you really need all that room probably not soon as a great time to downsize into something smaller. Besides lowering your maintenance cost utility bills and taxes that downsizing should leave you with cash left over that you can convert to an income stream getting you closer to your retirement needs.

As long as you've lived in the home for two out of the last five years.

You can exempt the first 250,000 in capital gains on the sale of your home, or 500,000 for married couples. And if you're worried about having enough room when the grandkids visit take some of that savings and get bunkbeds or air mattresses. They really nice ones with built-in air pumps.

We've got a couple of them now. The next biggest way to cut your retirement budget is with transportation.

If neither you or your spouse is working. Do you really need two vehicles, probably not. And you could sell one pocket more cash plus cutting repair costs, registration fees, and insurance premiums, and if you and your spouse sometimes have to be away from home in two different places at the same time that consider using a ridesharing service and leave the driving to someone else. It might cost you two or three dollars a mile, but you can afford that occasional expense, with all the money you're saving now let's look at insurance now extends specifically, disability and life. First off disability insurance is designed to replace lost income when you're recovering from an injury and illness and not able to work. Obviously if you're retired and not working. You have no working income to replace and therefore you have no need for disability insurance. Yet some people still carry it, drop it the day you retire now what about life insurance and retirement. If your children are now grown up and out of the house providing for themselves and their families. There no longer dependent on your income so you can cut back on life insurance, which by the way gets increasingly expensive.

As we grow older, you may not want to get rid of life insurance entirely total Social Security for the family decreases when one spouse dies, so you may want to have a smaller life insurance policy to make up that difference if your resources are very tight. Also look at interest on a credit card balance or other consumer debt. It's never good but downright terrible when you're retired and trying to adjust to a smaller income. Take some of the cash and freed up with the previous suggestions and pay off your credit cards as quickly as you can finally carefully go through your monthly bills to see what else you can cut maybe you don't need 500 channels on cable, 497 of which you never want are you one of the last people in North America have a landline drop it in your probably always faced timing with the grandkids on your smart phone. Anyway, when you eat out Sharon entre there too big anyway and hit some of those specials along the way. One thing you may have plenty of in retirement. This time, so consider giving more of it away church or your favorite ministry.

All right, I hope this is been helpful. Your calls or next. 800-525-7000. This is my wise live for joining us today and moneywise I Rob West euros to your calls and questions on anything financial applying biblical wisdom to what you're dealing with and your financial life is you seek to be found faithful. As a steward of God's resources. Here's the number to call today. Again lines are open 800-525-7000.

Whatever your question is today on saving or giving. Perhaps it's investing credit scores paying down debt. Maybe giving more wisely that we love to hear from you again. 800-525-7000. Let's go to the phones and welcome Kim to the broadcast in Michigan can go right ahead hi Rob, thanks for taking my call.)) Are 79 and they are having financial difficulty little bit more.may want to be handling at the point they're looking to downsize from their current condo to something more portable and I do have a sizable 401(k) that I could possibly use to help them get to the next place or help them pay off debt or something. I wondered how I could best help them with resources I have in Kim, did you have sought to borrow from the 401(k) were you actually thinking about taking a withdrawal.

What was your plan well, it's not in our planet with the company I work for anymore. So I would have to actually withdraw it. So unfortunately I would have to pack consequences and what is your age 49 okay yeah so you know I think the key there is this is gonna be expensive money because this wouldn't be for one of the exclusions that would allow you to miss the 10% penalty for early withdrawal prior to 59 1/2. So in addition to the 10% penalty. It would all be added to your taxable income for the year so you know this could cost you 30% or more. Not to mention the lost. Compounding that would occur in the years following where this money is no longer growing for the future.

So yeah, I'm not a big fan of that approach unless it's just a real desperate situation I would use that as an absolute last resort, so I would look at a couple of things. Kevin in the first thing to do and maybe Yorty have all this information would just be to get a complete financial statement look at their income their expenses look at opportunities to cut back and where their savings opportunities that might preclude you from helping them financially if as the largest expense they have selling the condo is key. You know, that's fine, but could we come up with another solution that doesn't require you to come out of pocket, could they sell it. Then you move in with you or come up with some other temporary housing situation while you look for that place or if you're going to rent or buy something smaller. You know, could you time, though the sale and the purchase of that or if it's a rental. Obviously that's even easier, such that we make one move and it doesn't require any money that's always going to come down to the what is the financial gap that exists does the change in the housing situation alone cover that or is there more to it and that's why you were looking to step in financially. So give me your thoughts on all that I just shared actually were planning that they would sell the condo with a lucrative hunting smaller and they would pay me back what I give them help them out of the frustration.

I don't know the dollar amount that thereat so I know they cut back on expenditures in the last year kind is from their budget at that and they still feel like they need to sell to make up the difference. Sure. But my question is if you're planning to pay you back and it sounds like they're anticipating a temporary gap which leads me to believe it's is related to the sale and the purchase of whatever they would move into. Do you have some clarity on why this money from you is needed on a temporary basis for coverage that they have. They're not able to completely cover the gap.

I have icy okay so that doesn't sound like a remedy that is long-term because you know, unless they're saying and we need a temporary solution to pay down the debt until your to cover the minimum payments until we lower our housing expense and then were planning on having enough and I really want to help them.

I guess the challenges without you really going into it with a clear-cut plan know their best intentions may not play out as you expect. And it you know is potentially going to cost you quite a bit of money in it of the reasons I mentioned early withdrawal penalty taxes, not to mention the money that's no longer available to grow for your own retirement 20+ years down the road. Maybe so. I think perhaps a little less than that. So I think in order for you to consider this as an option. You know, first of all I'd love for you to do it outside of retirement account.

Second of all I want to make sure you have the ability to do it without putting your own financial situation. In jeopardy, and third as hard as this might be.

I think you need to have a much clearer picture as to what's going on whether that you getting involved in looking at these numbers again. The financial statement income.

The expenses or 1/3 party like one of our moneywise coaches that comes in and evaluates the situation because otherwise were to go into it without a lot of clarity, you perhaps have one in a set of expectations.

They have another things may not play out the way they want during the timing they want. And now you know they're not able to pay you back, which may be okay with that but you know that may put them in a spot where it creates a little bit of yellow emotional toil for them because they're not able to make good on perhaps what they said to you on the front and so I think just to spare all that relational collateral damage and just to be wise and how we go about this. I think really getting much deeper into what is the plan. Why is this money needed and where is it going to come from and then finally, do you even have the financial means to do that despite your desire to be of help I think are all questions that need to be answered.

Do you follow that the yes I do thank you very much sorry you're very welcome and let me just offer up our moneywise coaches you can connect to the coach of moneywise.org and these are wonderful men and women Kim that your godly folks that would pray with your mom and dad and help you come alongside them. Whether you're involved or not to just get into the budget and perhaps be of help. Maybe they have some ideas that have been considering ways to cut back your other opportunities to provide some counsel and perhaps you and the coach and them could come up with a plan.

You haven't even thought of. So before you just kinda jump into this and at least consider that Jesse have 1/3 objective party that cannot help the way and will certainly be praying for you. Really appreciate your desire to honor your parents help them financially that's on the heart of God. We see that in Scripture. So that's a good thing. I just want to do it in a wise way and I don't want you to, you know, take resources, perhaps you don't have resources that shouldn't be used for this and expend them for this purpose. If you don't have to. So thank you for your call today, but said to Newton, Mississippi Mary, thank you for your call. How can I help call the question. My what you know about a trust in what should have a trust up and tell it. If you have a trust that it can help keep the nursing home from goblin up your retirement and savings, and I wonder if that's true, I just don't know a thing about a trust you. Well you typically a trust is used in a situation where you have a net worth of at least $100,000 and you have substantial assets in real estate, perhaps beyond even your personal residence or you have specific instructions on how and when you want your estate to be distributed among your heirs after you die, you have certain triggering events that beyond your death would allow money to be distributed as errors reach certain ages or if you have somebody was a lifelong dependent you know as they reach certain milestones just to protect the money so it's not spent frivolously. You are given to somebody who just doesn't have the ability to handle it. It can help to minimize estate taxes. Although these days with the estate tax being so high, it's just you and will ship a massive estate. Typically, it's not necessary, it can protect your state from lawsuits and creditors and so that's another consideration and you know what you're talking about is perhaps in a revocable trust. Whereas typically we talk mattress retirement, revocable trust, but it's if it's irrevocable, it's it allows you to avoid spending assets in order to qualify for Medicare.

That's at least how some folks will use them.

So I think you just need to perhaps visit with a godly estate planning attorney go over your situation and determine whether your situation warrants it. It's typically more expensive perhaps three times as much as a simple well so if you don't needed to and you can just have a will that basically tells your executor how to pass your assets and personal effects at your death that'll cover but if there's a more complex situation, or you have certain instructions.

A lot of real estate can make some sense of disconnect with estate planning attorney talk more to come.

Just around the moneywise around Western hosting moneywise.

If not, integrate money management to track your expenses is the digital envelope system to all of your institutions and with your spouse stay on top of your spending which is living within your means and that's the key to every financial success.

Not only that inside the app you can take this program on the go. You can access all of our great content from moneywise and are content partners and you can post questions in the moneywise community and get your questions answered by others on this journey with you as well as our moneywise coaches it's a free download today were ever you get your apps to search for moneywise. The boucle finance will head back to the phones we do have a few lines open 800-525-7000 in just a moment but will be talking to Austin and Arkansas will be talking to Mike in Indiana has a pension and 401(k) and his wife does her previous employer wanted to talk about how to handle that. But first, Jim is in Grand Rapids, Michigan, Jim, how can help you.

I think my call to him. God bless you guys think I worked 100 miles away right now from work and I come in part time.

I work three days a week and what leaving the company.

I got 115,000 in my 401(k) and I'm wondering about take that money to pay my house I/O 80,000 how I would like in and out with a zero balance. Or maybe a little left over and my Social Security whatever 2300 and but I did know leave the job, keep the 401(k) draw from that and just get a part-time job in an old manage the bills that way.

Or just pay the housetop flat. So my question yeah so obviously I heard that you want to not commute as far are you also looking to slow down or could you replace your current job with something closer to home, but continue to work full time with the goal of trying to preserve the 401(k) but get that mortgage pay down the little quicker so that as you enter retirement. You've got whatever the 401(k) has grown to you paid off the home which get your lifestyle expenses down and when you start adding that Social Security gives you an opportunity to know.

Perhaps live within your means by drawing income from the 401(k) the Social Security and you know hopefully for a lot less than your spending now on a monthly basis that talk to me about that option. Yeah, I let I'm getting a little spoiled working three days a week yeah South and outgoing work it out and all Norton full-time job again. Yet that is good possibility and I really haven't looked into it that much and what is your age. Jim yeah I'll be 64 next month. Okay yeah so I think you know that, perhaps, is the opportunity because I also love you know if you're if you're trying to work on modest means and stretch it as long as you cannot. Also love for you to wait until full retirement age to draw your Social Security so I think if you were to perhaps prayerfully set a goal for the Lord to provide something full-time little closer to home so you take that stress off, maybe working a few more hours a week, but you have a goal in mind and that is to get to full retirement age so you can maximize your Social Security check. Take this additional funds you're bringing in by working a couple extra days we can put that nod toward additional lifestyle spending, but in a double and up on that house payment so that so when we reach this worker retirement age were certainly much closer to paying it off. If not there and then you know perhaps pulling a little bit out of the 401(k) to pay the rest of it off is not such a big proposition, less taxes and preserving more of the 401(k) that you could convert to income at that point, I think that would be my preferred option is to, as opposed to trying to do this quicker. You know, eliminating the 401(k) because you used it to pay off the house and now really you're just left with Social Security in terms of your supporting your lifestyle you follow not only do I really appreciate it very much. I Jim hey listen. Lord bless you and we appreciate you listening and calling. Let's head to Indiana. Mike is up next my good afternoon. Thank you very much less or no problem. I maybe two questions.

The first my wife previous employer got out for 1K and she's got a pension and don't know should we take a lump sum and convert that with the K and put it Jordan 401(k) into a separate account is that a taxable event that lump-sum yeah well if you roll it into a new 401(k) or an IRA. It's not if you do if you just take it out it will be. So what I'd love for you to do with your new 401(k) allows it. Yeah, roll it right in. If not, roll it out to a 40 in the new IRA with the 401(k) from the previous employer, you got it all in one place and then I think at that point I be looking for a certified kingdom advisor there in Indiana you can hire to manage those resources so that between now and retirement you really maximizing it, not taking unnecessary risk, but having somebody oversee so anywhere I go from here.

Micah used in the light of this, if you have any follow-up questions as we head into this break also got a few lines open today 800-525-7000 stay with us much more grateful your tuning in the moneywise live that Rob Wester host moneywise live's listener support. That's right.

Everything we do it moneywise. Media from radio broadcasts or websites or content coaches and CKs is all as a result of your generous support you consider a gift beyond giving your local church. You can give the moneywise quickly and securely just set over the moneywise.org and click the donate button. We got a couple of lines open today to in fact and the rest are full, but there is one for you if you call right now 800-525-7000 two Arkansas Austin thank you for your patience ships or how may help you in our employee following her husband Wally income to live for, look toward the future and wonder.

Failure is one no. Complainers are held on an easy way to save with my income yeah yeah well I appreciate the question, and I know you want to provide for your family and save for the future and sounds like, just by virtue of your calling. You want to be found faithful in all of that and I know they can be challenge unlimited means, especially with the little one and home. Of course you married and so is a family of three expenses, especially in this environment where you would got some inflation seems like every time you go to the grocery store. Things are little more expensive gas prices are up right now you know it's it's a challenge.

And so it really comes down to number one. Recognizing God owns it all and he's your provider not your employer, but God himself. So being found faithful in handling whatever passes through your hands number two trying to maximize your income. You still want to be able to know not take away from your family time so we need to have a work life balance, but to the extent you can take the gifts and abilities God's given you and try to use those to maximize the income you have coming in to take care of these needs that you have in the present but also set something aside for the future and not to mention giving back to the Lord. That's key and then living well within your means. Which means I have to be content with what God has provided doesn't mean I don't want to try to increase my income over time, but at any given time. Whatever God provides a want to live with contentment and joy. And that means I need to keep life simple and live modestly Austin. You mention you're working full time making $15 an hour. I guess the first question I would have is no longer-term can you get into another line of work you might pay a little bit more than your current job. Could you take on a few more hours in this season you would you be willing to move to find higher paying employment and then I love the tell your wife is decided, and you all decided together for her to stay home with your little one is there some way to get creative. There could she provide daycare for a working mom or to one day in a couple of days a week if something that would add a little bit of additional income for you all to use. And so I think as you prayerfully consider all of this I would just look at what opportunities you have to both increase income as well as you maintain your expenses or decrease them in managing those is really key, especially when things are tight in her having a plan that's been no thought through and prayed over that balances is key and you are moneywise app could help with that infected love to give you a six month Pro subscription to seek and to get that budget working and you know make sure that you stay on top of what you have available.

So I think those are kind of the next steps for you, but give me your thoughts on what I've shared Austin. Like looking forward to my life. Everything moving up that way yeah moving, difficult situation because my wife's family law here and we occasionally use them to watch our son ever now been where we need them to have a family. There and the hour yeah I am willing to take on more hours I have been trying to go more hours. I feel like a moron for going more things that pop up.

Well, I certainly understand that. I think you, you're in a good field. You obviously have a very marketable skill as an electrician, especially these days is more home renovation and building projects going on than ever, it seems like it's always hard to find good quality person who's available because everybody just has so much work they don't know what to do with it. So I think I would be, you know, continually looking for opportunities as you get more and more experience to Yost get paid more.

Perhaps you know during this short-term season here until you can and will be hired on as a full-time electrician moving out of an apprentice status.

You know, I think the key is how you manage expenses and what additional income opportunities can come your way, either through your wife or you be being willing to take on some extra work and then you perhaps continuing to look at other employers you know who might even be able to pay you more as you get more and more experience so I just make this a matter of prayer to hold the wind will get you that moneywise app subscription, but I'm confident the Lord give you some wisdom here and you sound like somebody really wants to honor the Lord and do the right thing to provide for and your family and save for the future and that's what we should be thinking about this point, so we shall appreciate your call today. Austin God bless you, to Hollywood, Florida. Juliet think you for calling today. How can I help: I want to find out if I'm tired, I help to get the extent of my mother and my arm. I cried onto the landing. Finally, in Charlotte overnight. No, I don't think so.

You know some folks like to prepay their funeral expenses gives him a little more peace of mind to know those decisions been made in advance and funded the challenges those funds are tied up and you might need them for other things like medical expenses.

Once you prepare funeral is typically no getting that money back if a funeral home goes out of business in many of them have. You know then you could be out the money or if you change your mind if you prepay your for a funeral and move somewhere. Those funds don't get you, so you know what some folks will advise you to do is set up a payable on death bank account and save the money there which just means it's earmarked for that purpose. It remains liquid and usable elsewhere if needed.

Now if you don't have the resources to cover that you when that time comes, then you could look at a small can of rider or additional insurance policy but I just don't know that that's a necessary expense because you probably have some savings and other assets that could be used for those final expenses.

Just make sure your wishes are known. You got an up to date will and it out. I think that's the most effective approach for most folks.

So does that make sense to you, though. Juliet finally signed by finally, don't want the crime yeah I wouldn't I would make sure you understand what you have and that you have the right amount of life insurance to cover your loved ones, you know, if you predecease them. So if there is loss of income or additional expenses that your husband will encourage her to death. You need life insurance and if the opposite is true for you or if it's just for this purpose only. You need to know what is the death benefit on that policy, but apart from that, you know, having an additional policy specifically for this purpose is typically unnecessary. So I think you can probably pass me appreciate your call today. Folks are listening to moneywise live biblical wisdom for your financial decisions. So glad you're along with us today, inviting us into your story is together community of believers try to find God's heart manage our money. We got a lot of great questions just around the corner. Stay with us much more to come on moneywise live. This is moneywise. I have a Moody radio where we recognize God owns it all were stewards and money is a tool to accomplish his purposes for your questions today will.

Good news all the winds are full so you can sit back, relax and enjoy some great questions like this one from Rosa in Washington, Illinois.

Rosa can help further your life insurance that I carry through work and life insurance and we can get additional cell. Last year it was. It was $34 this year it was 72. I'm informed that it's going up to hundred and eight next year ($50,000.

I'm wondering if I shouldn't take that $72 hundred and 18 and my my IRA bank so that it can be. In fact, have you, but I think the question really comes down to Rosa do you need life insurance at this point, and here's the primary question. Do you still have dependents, children or others who depend on your income well mild defendant lived with me because my husband passed away in January and I still have a house payment and mortgage payment and a car payment, but something that happened to me.

He will be able to know where to land. He worked part time little health issues so okay yeah so that would be a consideration to me and obviously he if he were to be the recipient of your estate.

The question would be after the sale of the car in the home and whenever you have in savings and retirement accounts. Would he have what he needs. Then if that's how you're going to pass those assets to get out on his own and rent an apartment and you get a full-time job and you know those kinds of things is he at a place where you need to provide you know these assets paid for free and clear through life insurance or you know. Could that be handled some other way by him just liquidating everything that he receives through the estate and then you know moving on from there. If you decide you do need to be able to pay those often the question is where is the most cost-effective way for you to get a term policy. You probably had 10 year policy at that your age and would that fit into the budget and for what face value what to death benefit you. Do you need 100,000 pay all this often can you afford that. So I think that is what I'm looking at, not should I continue with this policy work. But first, is it really needed life insurance you is that something you need to provide for him. All of these things paid for free and clear.

Secondly, if it is, how much insurance is needed. And thirdly, where can you get it least expensive and that's probably not through that policy work. It might be somewhere else. Team does that make sense though I retire that policy again don't yell just the $49,000 and that would not at that point in time are paid bills that I have you helped him out and immediately helped him that it wouldn't care things paid off, out, out, yeah. And I think this really comes down to priorities right is, is this the priority and doesn't fit into your budget and what is it you because there's limited resources deal when were allocating money in one place a means it's money that can go elsewhere, as you Artie said this could be redirected toward your long-term retirement savings you know and that may be the better a place for this right now so that you have the ability to provide for yourself for me. He's younger guy and you know, it sounds like unless there's real health problems is preventing him from working full time. You know he should be able to provide for himself again. I don't know the whole story. So I think you really just need to revisit this question in that order. Is it necessary how much and what fits in the budget and what's the most cost-effective way to get it so I will ask Laura to give you some wisdom as you pray through that.

We appreciate your call today to Chicago, Illinois.

Robert, thank you for calling today.

What is your credit score. Question yes thank you taking my call in reference to paying my auto and someone said maybe I read it somewhere. I'm not sure that if I see paid it all my credit take a hit. Is that true yeah you can drop a bit temporarily, after you pay off the loan and the reason it is Robert that the changes what's called your credit mix, which is the different kinds of loans that you have outstanding that are open and active accounts. Your credit mix accounts for 10% of your score. Oddly enough, the more kinds of credit you have been so we got revolving accounts in a like credit cards and we got installment accounts like a car loans and mortgages. The more types of account you have, the more it helps your score. So by eliminating this particular one.

The installment loan for the vehicle.

It's going to change your credit mix with which again could result in the temporary drop. That's not my primary concern, though, because it is temporary would be minor. My primary concern is you pay off the car to get out of debt. There's no reason for you to pay any one dime of interest beyond what you have to purely for your credit score. So I would not let that be the driving force. Does that make sense and and did you have a follow-up question. The question is in reference to my credit score. I have a Discover credit card and paper statements think that my credit I don't know how true it is.

My credit score 699 I guess based on cycle eight and then another credit card paper statements paper statements said I have a credit score of 681 hi go for some not sure what my critics, my true critics score is not know, at six 8690 and I do have a credit monitoring service that I paid $26 a month or so. I'm not sure how can I find out my my true critics score yeah well you really don't have a true credit score. To be honest and the reason is that your different score providers use different methods for determining their version of your store, they can pull from different bureaus which may not all have the same information because one credit account may report to one Bureau and that the other two, or may report to two out of the three. So there's different test scoring models and companies of FICA was one advantage is another and then within each of them like fight go as you said you know there's pico nine which is the newest and not widely user cycle eight which is the most common you know mortgage lenders typically used to four or five depending on whether they pull from experience when you trade union or echo facts so they are going to vary but that's okay. I wouldn't get so fixated on that particular score right now because they're all gonna be in a similar range and what you're looking for is is there one major thing that's pulling you down as your credit utilization to high meaning. Your balance is your caring or above 30% of your total limit. Do you have any the delinquent accounts or have you paid past due. You don't want to do that and what is your credit mix. Do you have lots of new inquiries as long as you're systematically moving toward being debt-free.

Using credit responsibly. It doesn't really matter which score you're looking at you just want to check your score regularly. So if there's a major decline, you can go in and look and see what's going on. Did you miss a payment or did somebody open an account fraudulently in your name and then walk away and those would all be things you want to know about if you didn't already, so I wouldn't pay that close of the tension pick one and just follow that one perhaps monthly.

If it's free, your quarterly and apart from that, you just follow God's principles of managing money and everything will work out okay Robert, we appreciate your call. Our final call today for the broadcast is Emma in Austin Texas. I have a daughter named Emma. Love that name.

How can I help calling to find out if my mother and she has no saving me. What can I do in regards to get our 10 deathlike which stocks are what would be the best way to go about to start getting some investment empire. Since she's already 65 seven. I think the key is the minutes it's challenging to save money out of a monthly Social Security benefit unless she has very low expenses prep. She's living with you or something like that. Do you think she would want to pick up a part-time job just for some to get out of the house and do do enjoy to make a little extra money or worry. Does she actually have some margin just based on the Social Security benefit large and she got it. The disability okay I okay and so how would then where is the savings going to come from the check she let me okay so she really doesn't have a need for it, or at least all of it right okay are very good.

Well, I think the key would be to start by just kinda building up an emergency fund, I'd love for you to get at least six months worth of expenses in a an online savings account. It's FDIC insured so that she's got something to fall back on, or you do for her. He has unexpected expenses, and there probably can be medically related in the season of life for her.

Your especially as she gets a little older and then beyond that, I'd be looking in a perhaps to put some money to work on a very conservative basis and as she could do that through the Schwab intelligent portfolios or Vanguard advisor where you basically just make an automatic contribution that would go into a very conservative index-based investment strategy that would capture the broad moves in the market and the bond index so the Schwab intelligent portfolios or Vanguard visor for the Robo advisors, thank you for your call today to say thank you to my team Gabby to answer phones today. Amy Rios engineering Deb Solomon is producing Mr. Jim Henry providing research today lies live as a partnership between Moody radio and moneywise media so grateful to Moody for all that they do to bring you this broadcast every day was a thank you to you as well for being here.

I'll be back. Lord willing, tomorrow I hope you will be as well see that God bless

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