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Retirement Health Care Costs

MoneyWise / Rob West and Steve Moore
The Truth Network Radio
September 6, 2021 5:15 pm

Retirement Health Care Costs

MoneyWise / Rob West and Steve Moore

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September 6, 2021 5:15 pm

You may have seen estimates for sky high health care costs during retirement that most workers could never hope to amass. But are those numbers really true? On today's MoneyWise Live, Rob West will share some surprising new information from a top brokerage firm on that topic. Then he’ll answer your calls and questions on various financial topics.

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Rob West and Steve Moore
Rob West and Steve Moore
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Rob West and Steve Moore
Rob West and Steve Moore

One listener that stands out in her work with recently was his older couple that was interested in refinancing. He 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 them, 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 can 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 his 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.

It's not a 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 corporate 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 his prerecorded store phone lines are not open you may have seen estimates for sky high healthcare costs during retirement that most workers could never hope to invest, but are the numbers really true. I Rob West one of those forecasts is a 65-year-old couple will have to spend as much as $400,000 during retirement. But some surprising new information from a top brokerage on that topic today. We have some great calls lined up but we will be taking your live calls today because we're prerecorded. This is moneywise live biblical wisdom for your financial decisions. So I really tries to see this coming. In an article on the to price website because brokerages often go with very high numbers when estimating retirement healthcare costs. One obvious reason for that is they want to encourage folks to invest as much as possible during their working years to pay for healthcare and retirement. That's not necessarily a bad thing, but I think we can do without the fear factor. That's why was refreshing to see a brokerage state plainly that the catastrophic estimates are wrong for the majority of retirees and to back it up with facts. That said, healthcare costs truly are retirees top spending concern and not without reason, the article states that planning for retirement is easier if you take a different approach for calculating those expenses and it lists three steps for doing it. First stop viewing healthcare is a huge one time expense. We don't think of our smart phone is costing $75,000 during our lifetime, which it might, by the way, so why look at healthcare costs. That way you don't prepay your phone bill and you won't prepay for healthcare instead to reduce the fear factor and make planning easier. Look at those costs, not for 20 or 30 years, but on an annual basis.

Second, separate premiums and out-of-pocket expenses. You know what your monthly premiums will be.

Or you can at least estimate them with some degree of accuracy. You can't do that with out-of-pocket expenses. Premiums for Medicare and prescription drug coverage will make up about 75% of healthcare costs for most retirees, no matter which Medicare coverage they choose, since these fixed month-to-month expenses comprise the bulk of annual healthcare expenses. Most of that spending is predictable and you can simply make it a category in your monthly retirement budget and pay for it out of those funds.

That leaves only 25% of total retirement healthcare costs unaccounted for. But it's still the biggest source of uncertainty when planning for those costs. These are the dreaded out-of-pocket expenses which will vary greatly month-to-month. Depending on the individual hear the article recommend setting up a liquid savings account with enough cash to meet your annual out-of-pocket expenses.

Think of it as a health savings account but obviously without the tax benefits of an HSA. You would then replenish it as needed to meet your estimated annual out-of-pocket expenses. Third, take those huge estimates for retirement healthcare costs with a big grain of salt. There usually based on a single type of coverage that requires the most out-of-pocket spending, you will likely choose a better plan.

Those frightening estimates also reflect the worst case scenario focusing on the small minority of retirees whose health status requires maximum out-of-pocket spending for years and years.

The vast majority of retirees won't experience that now for the numbers you been waiting for T. Rowe Price estimates that half of retirees with traditional Medicare parts a and B, a prescription drug plan, part D and a supplemental plan will spend less than $1200 a year on out-of-pocket expenses that must come as a relief, but it gets even better. Only one in 10 will likely spend more than $4700 a year on out-of-pocket expenses and even then that person probably won't spend that much year after year. Imagine a medical condition that takes several office visits and maybe a CAT scan or MRI to diagnose but then is cured or controlled at a far less expense now. All of this makes retirement healthcare cost planning easier and far less scary. Here are the steps you should take that compare premiums and out-of-pocket costs for various Medicare coverage options, including prescription drug coverage and choose the one that fits your needs. Then calculate your premiums based on that plan and make a category for them in your monthly budget and finally keep enough in your savings account to meet annual out-of-pocket expenses do that by reviewing those costs in prior years so there you have it for the vast majority of us retirement healthcare costs don't have to be frightening and can be realistically planned for. By the way the article we referenced will be in today show notes to pause for a brief break that with much more stable and it's great to have you with us on moneywise will I today but unfortunately they were not live were recorded and therefore won't be taking your calls. However, we've lined up some calls in advance that we think you'll find helpful. So stay tuned and enjoy the rest of the program.

Miami, Florida, just south of where I was born and raised lose. Thanks for going today. Can we assist you.

Thank you for your program will gain an power of attorney on the name of my oldest daughter.

I have to daughter time and couldn't put my youngest daughter Beverly so everything is under my oldest daughter that was to sound like I wanted to change it. They told me that every year I should needed ending in the back of it. I should put the date on my signature like I still agree with but you mentioned something about up to date will what does that mean it affected because walking 15 years old.

Couple of thoughts serving your will.

Doesn't expire so it did you know should mean there's nothing that would cause it to not be in force, but some of the reasons why you'd want to update your special your will. But some of these other documents are state and federal tax laws are consciously changing which may or may not affect you so you want to be aware of any changes that may affect your estate plan. Probably for most folks know should be any changes that would result in any kind of tax situation, but life changes as well.

So minor children growing up in all of birth or adoption of marriage or divorce, the death of someone named in your will want your children reach the age of 18 you.

If you have a change in circumstances of your executor or guardians you want to provide for a charitable or other organization, your church or ministry and you make that decision after you originally created your will.

Also, those would be the kinds of things and that and if you move out of state. Which, you know, the state laws and feel can can vary by state, and so if you move you that would be another triggering event. So I think generally what the common advice is is that every three years or so, you ought to at least have your will review it doesn't mean that it's no longer effective.

It just means that there may be a reason to update something based on your life situation so I'm not trying to add unnecessary expense to you by you know visiting with an estate planning attorney, but at least you know if you're in contact with the person who originally drew it up. It might be worth you saying you know is there anything I need to consider the needs to be updated and just think through exactly what you had originally named and in what you the decisions you made for your will and see if there's anything that you would like updated just based on what's changed since you drafted that document.

Does that make sense was but one more question. My mouth was not included in any of those papers like the Cabell County medical procedure which I was thinking I wasn't going to go moderate Pan-American all quotation but down the Lord I'm here fine my house I have to go take planning your college cane, cannot enter what you got it down, you just said to me can estate planning came the hollow sense will actually be able those three items that I just mentioned to you earlier and they do all of it, they could make sure that the home is properly named in your will and in any other documents. For instance, if you had a trust probably don't. But yes they can make sure that everything is handled properly from a titling standpoint and as it's handled in the will.

So if you don't have an estate planning attorney I'd probably start with. Whoever did that originally, but if if that person is no longer ill in this area to assist you. You could connect us usually connect with a certified kingdom advisor in your area and asked for referral. Hopefully that's helpful to really appreciate your call today on two Oaks Dale Washington DC.

How can we assist you today how silly question knelt out and really rendering it necessary that an estate plan there when everything that we can't bank accounts Mark H everything in our name and since retirement, iron lifted the beneficiary so we can really run into problems. Under the circumstances, I think a couple of thoughts would be you know is there. If what is to have something happen to both of you at the same time you know so then you would be leaving up the clock to the court to decide.

You know how your assets and the property is distributed at that point and so that's where a will would actually cover everything that's not deal with the named beneficiary and I think would be helpful to you. Beyond that would be some of the other kind of documents and legal instruments that I think would be helpful to you to have in place your such as a living will power the durable power of attorney, health care surrogate those types of things so that would probably be my consideration as you think about whether or not you need something beyond just named beneficiaries. I think it would be helpful to have that will that covers you everything that's not included in one of those accounts. It would be worth your time to address that and you could deal with some of these other legal instruments that I think you be glad to have just so your wishes are carried out with you and your husband in that season of life. So appreciate your call today very much. The hope that's helpful to you on the Chicago Illinois just a few minutes left to me.

How can we assist you how the mortgage modify the payment because an issue with work being laid off and they had me second mortgage lien on the property second mortgage market and I wonder about what I want to refinance there any way to get around that it's a good question. So was the second loan home equity loan or HELOC, or was it just this additional amount that was put in deferment okay yeah so the only way really to get rid of the second loan is to pay it off or do a refinance and wrote roll it into a new mortgage containing both loans.

Assuming you have the equity to do that in the credit score to go with it. Does the water refinance makes sense on its own Tamiami tell me about the first mortgage that you have great it's like that something that my credit, the fact that what my payment so you know what is currently only 35 okay so you're going to struggle a bit. I mean, you'd only need to save a point for this to make sense probably appoint 1/4 would be ideal, and so once you get above 640 you can open up a few more options certainly above 740 is where you begin to qualify for the very best terms and interest rates so I think it be worth looking into refinancing it. If not, I would just really prioritize with any surplus you have, beyond your emergency fund, or any credit card that you have try to get that second loan paid off as quick as you can, but it be worth looking into refinancing bank would be a great place to start.

Certainly, check with your current bank I get two or three offers before you make a final decision. As long as you say the least, appoint, and the expenses are not more than 1 to 2% of the loan that I am planning to stay put there for 5 to 7 years.

I can make this call today folks think you along with assorted apartments. This is moneywise and I worked God's word intersects your financial life.

Stay with us back to moneywise unravel as this is where God's word intersects with this today for our team is taking some time off today. This program is so don't: today we too were live in the studio but we do have some great calls all lined up ready for you today. I'm sure you'll enjoy them now getting back to those calls will talk to Matthews in the Twin Cities area. So Matthew I understand you're a part of a small home church and you're having trouble figuring out how to tie like a light young. I did not. I first three years we were married that disobedient more than I and your thoughts and directed all submitted to the Lord to start doing that capital is the last thing I like is was a really good thing and now like that on a 501(c)(3) church is made out to other families. So where to tie kind of the terms that are problematic.

So I try and up you know not tithing regularly.

I just keep track of it on my paycheck. You know how much how much I'd like to. Then when the need arises. I do not.

I just wanted you had any advice on a more clean way to do letter better way so well couple of thoughts.

One would be you can open what's called a giving fund at the National Christian foundation in CF The technical name for it is called a donor advised fund, they call it a giving fund, but essentially think about it as a charitable checking account where you can make contributions as often as you like. When you make them your essentially giving credit for the contribution. When you make it and then you're going to get one statement every year from NCF that you would use. You know, if you itemize your taxes for deducting those contributions and then that money sits there and whenever you decide you want to gift it out or granted to Christian ministry or charity any nonprofit, you would essentially log into the website and it with a couple clicks of a button, like a you you do online bill pay you just give the money out you can do it in your name or anonymously.

The thing I like about that is, option one is it gives you a place to get that money out of your checking account so you not just got a keeping track of it and then down the road like maybe I can't part with this you can just make it systematic and your every month you're giving it to the Lord and then you have the freedom and flexibility to decide where to distribute that with you and your wife going to do that a couple times a year, or year end or whatever the Lord leads, I think that would be a great option for you. Again, just so you could build in Indy are planned in and get it done and then you know if you guys create a C3 or your something down the road you have that option.

Otherwise, I'd probably just you know asked the Lord where my being fed apart from my local church and then you could certainly tie that there so to speak. The only other option you may want to consider is just setting up a separate fund if this house church has needs, you know, so if if, as you guys are you know perhaps there's another family or to the comes and you know at some point there some expenses related to a meal you guys want to share together in a one night or something like that. You could just gonna have your own fund on the side you wouldn't be able to granted out of the donor advised fund because that wouldn't be going to a charity, but I think in in this case, the Lord knows your heart. He doesn't need your money and so if you wanted to keep it available for the church family, so to speak. These three families for whatever purpose he leads you to use it for, you know you could do it that way and I think either one would work.

Tell me your thoughts so option one. What corrections are the only gift to a charity so is it ended up like a 501(c)(3) right to assert somewhere, are one of the restrictions on how I can yeah yeah yeah yeah so from a donor advised fund can only grant to a 501(c)(3) not-for-profit organization and with National Christian foundation. They would add an additional requirement that it only go to a not-for-profit that isn't, you know, antithetical to Christian values which I can imagine you're sending something there. Anyway, I don't write just three on all of them are 10,000s of charities. So any yeah and if you wanted to give to one that they biz not in their system. They would contact them and get a copy of their nonprofit status and then you could make the gift. So it's not like you be limited but which you wouldn't be able to do is give it to an individual or something like that right like no something like that so when you I mean I think there's something to say about being systematic in your giving so you know as your increase comes in whatever form that is commission checks or inheritance or gifts or even Social Security in your essay. That's a long way down the road, but just really any form other than kind of an insurance settlement where you have a loss in their making your whole I would see that is God's provision your increase and so I would give you know at the time the increases received the oh so typically that we think about our increase in terms of a monthly cycle just because that's you know typically how we get paid either monthly or bimonthly or something like that.

I think you're in a little bit of a different situation where forgiving to the storehouse you don't have the ability to do that and so that's where were kind of creating this other means for you to get it. You know into a place where that ultimately you can get it into circulation in the kingdom by way of the giving fund, but I would just try to do that monthly B if for no other reason, you'll forget about it you know when six months build up that number gets larger and you start to have second thoughts about you making the gift and stuff like that so I think that would just be helpful to you for you to get into that route. Yeah, just wondering what the name of that. Yeah it also go to. It's the National Christian foundation, which was started in the late 70s by Larry Burket and Ron blue and guy named Terry Parker. They've given out this pass-through NCF. It's like some like $10 billion numbing. It's incredible. It's massive there are the top five largest charity in the country but again there kind of a conduit. They don't actually do the work so you go to their website NCF NCF and then you'd want to set up withholding giving fund all right. Well not very well liked all happy to do it and appreciate you listening to anything else on the way I pause for a brief break that much more about the moneywise. Barbara was so glad you've joined us today. This is the program were today's financial decisions. God's wisdom will certainly do our best to apply God's truth or financial questions and decisions will do that now by going right back to the phone. Send a welcome to moneywise. Go ahead and don't good things. So my question is I wanted want to know if I should take out of $20,000 loan to start a business. Okay, tell me a bit more about the business and what your use the money for. So the bid basically custom carpentry or woodworking cabinet built in your fine woodworking anything everything out basically longer glad and the loan would be to build a shop at my house to work on it will run the business that rights and is this a business you're already in the gym and you're just looking to expand it, or is this a new venture for you will currently work for a company, but doing the same thing offensively in the business and how it wouldn't leave my job or anything.

Basically I be trying to you know to start out in all my time often and see what happened with it. Okay so this is going to be on your own time.

So whatever you earn would supplement the income you already have what you plan to continue earning until such time as you got enough built up that you could go out on your own is a right okay and where would the loan come from. Is this a personal loan or some other type card so attached to your home or any other collateral. Mr. okay and did you go to the local bank. And what kind of terms are you looking about 14% 46 month for the loan. I believe okay all right yeah I mean that's an astronomically high interest rate and I realize because this is a new venture and perhaps you don't have a lot of the way of the reserves go. That's why they're charging this there's obviously no collateral so this is a summa signature loan that you're getting. Yeah, that's the part that I'm not thrilled about have you been able to save up any money Jim that you could use for this either doing it. Over time, or is there another way to start to dip your toe into this water without taking the slowdown well right now. We got about $15,000 saved okay and reason for the loan would be basically not know Ron dry but we are not sure what we should. Well, I'm just can encourage you to perhaps take it a little bit slower. Are you able to meet your expenses right now with the income that you have and live within your means. Yeah right now after after all, we have about $2100 left over every month okay will that's tremendous I mean clearly you're limiting your lifestyle.

I'm wondering if you couldn't just delay this and you'll fund this out of your own cash flow. Because if you got 2100 a month left over. In addition to the roughly 15,000 you've Artie saved that tells me you are within 10 months, you have the money that you need to be able to get this woodworking business started. Now you would want to drain your reserves to zero, but at least you could do this without taking on an astronomically high interest rate. So I think perhaps just being a bit more patient. Jim clearly the Lord has gifted you with some gifts and talents in this area. I love the idea that you're not going to just automatically leave your current employer, you can do this on the side to be able to add additional income to your family while you build up this business and that ultimately have something that you own. Clearly your your gifted added so all of that makes a lot of sense to me. The only thing that I don't like is the terms that I'm hearing on this loan slide either shop it around and see if you can find more attractive, more favorable terms, especially related to the interest rate or to just delay this endeavor until you can fund it out of your current click cash flow but apart from that, my friend. It sounds like a great great plan will certainly be praying the Lord give you wisdom as you proceed and thank you for your call today. Let's go now to Sandra in Illinois you're on moneywise. I thank you for taking my call.

Yes I have a question I am well recently widowed. My husband had put most of our retirement money and it was in a rollover IRA and a Roth account entered into a managed account so that would be easier when we look into investing this money.

We tried to find a company that was at least morally responsible because we feel strongly that we don't want our money invested in things that will contribute to Lake Planned Parenthood. Things like that and were told when we interviewed the company that that they fell within those parameters, but in going over the companies that our money is in right now since I had to take this over. I have been checking that out and it looks like several of them are directly contributing to Planned Parenthood so I'm not comfortable. I don't know I don't like.

I want my money invested in these type of companies and wondered if there's like Christian investment companies that have managed accounts that and if there is, is that something I would be able to transfer this money into its you know I can't talk to managers and see if I can get it switch within the account.

Sure, well said. I love what you talking about here, and this is actually a really exciting and growing segment of the investment universe. It's a subset of the investment universe we call faith-based investing where the companies that you're investing in, which is an investor of a company, whether it's through a mutual fund or a direct ownership through stock. Your are in fact an owner and so there's a growing number of people that want to make sure that their values line up appropriately with their investments either investing in things that directly benefit the common good through making a social or even a kingdom impact or of perhaps avoiding certain companies because either their direct business is in conflict to their Christian values or the use of their corporate profits would also be in conflict and in either case, whether embracing certain companies or avoiding other companies that fits nicely into the faith-based investing universe give you a couple of options number one would be to connect with a certified kingdom advisor in your area by going to our website to and that you want to interview at least 3 inches.

Ask if they do faith-based investing. Many of them do and could manage it. On that basis.

I think the other option is to go directly to some of the mutual funds that operate in this capacity, I'll mention a few eventide would be one of them. You can find them and invest inspire is another inspiring give you 1/3 praxis neutral funds PRA tax RIS praxis mutual funds will be 1/3 anyone of those three have phenomenal mutual funds only based on faith-based investing strategies. Whether you want to hire an advisor to do it for you. Go directly to fund though should help you can search any stock or bond or mutual fund to determine whether there investing in things that conflict. We appreciate your call very much today. This is moneywise live on Rob last were to pause for a quick break with much more stable to moneywise live on Rob last year today and what questions all lined up talking to Sherry Cleveland about contractor to a full-time therapist but first we had south to Miami, Florida Michelle, you're next on the program. How can we help you and I that my.

Our I'm wondering how notebook work. The fact that stock shares software now which stock old and I broke it back and I didn't really get a lot that 80 I can't type VIII have that would help me out (so are you limited though.

In terms of the investment options you have. Based on your current work that you do that suppresses to me about this TI AA craft offerings that still available to you or do you have the ability to go outside of that and you edit that option gets very familiar with TIAA-CREF and that's a great institution with some great investment options in its there's matching available to you Michelle, I would take full advantage of that. The key is to get in the right investment mix yellow with these funds and using the TI AA craft mutual funds whether there their own funds which they've got to know what they call lifecycle funds which are based on a target date of when you would expect to retire.

They have some something called a lifestyle fund word was really geared toward the level of risk you want to take and then they have their featured funds which have no different investing style.

So they've got some that focus on stocks. Others that are in the bond area international multi-asset with a combination of of all of them but they have some some great mutual funds to pick from. So I think the key is first of all, how do we maximize what's going in on a monthly basis and that's gonna be by at the very least, taking full advantage of the match and then beyond that you're getting.

I think a target of 10 to 15% going in every month so that's the first thing then the second thing is, what is the right investment mix for you in the idea of mutual fund investing if that's what you are describing is a great way to go because it's allowing you to take a smaller amount of money, not hundreds of thousands of dollars and deploy it across a wide range of investments your Ecclesiastes 11 talks about put your portion in seven or even eight for you do not know what misfortune may come in the idea. There is you want to be diversified. You don't want all your eggs in one basket, so that's why you'd have your broadly diversified portfolio even at your age, you'd probably want the majority in stocks but you want a little bit of bond exposure and you want to make sure you're not just in the US but that you have no international stocks and small-cap mid-cap, large-cap, and you know those types of investments and that's where if you want kind of a plug-and-play solution. You can use the target date funds for the lifestyle funds, and in either case, it would make sure that the investment mix is appropriate for you or if you want to be a little more aggressive.

You could you pick one of the featured funds and actually picking all stock portfolio, mutual fund and the other be professional money managers, even though you don't know who they are. You. You could count on them being somebody who's very well experienced and has proven themselves and their track record because they're part of a great institution.

They would just make sure that there's a really good manager there so I like that option if you want some advice on which funds to pick. You could either connect with a representative that would be made available to you through TIAA or you could go out to an independent advisor.

Pay them for their time and have them look over all the investment options and help you make the selections does it make sense. I know I don't want my college and should be pocket on the ladder and prayed that they may come to me. Pay for her around the farm and I became a friend.

Yes, generally speaking, there is no federal protections in place, shielding necessarily like an IRA from seizure in a lawsuit. But you know generally retirement assets carries certain amount of protection and you know in terms of creditors, you know they are protected up to a certain amount. So if it's the assets in what's called an ERISA plan which is the type of plan were talking about, you know they are protected from creditors.

So yeah, I think here you wouldn't have to necessarily worry about that with just maybe a few exceptions, I would say that sounds like this is already been done. But that's why the Bible is so clear about not close because you know in that the Federal Trade Commission tells us in 50% of the cases where somebody has to go sign in order for someone to get a loan. 50% of the time they can't make good on it and the other party has to step in and know that's I think why the Bible speaks to this because it can create relational and financial damage. So you need to go into this being ready willing and able to step in if your daughter skews me your think is your niece can't.

Just because you don't want to trash your credit in the process but get retirement assets would have general protections, especially against creditors. But bottom line is this is just a great way for you to be putting money away systematically for your future so we appreciate your call today, very, very much. But, let's head quickly to Winter Haven, Florida to marry her. Next on the broadcast redhead hankie taking my call. I my mother turned $80 would like her to be able to enjoy her house about the mortgage CO 38,000 on. I'm 57 patent retirement 10 years so I thinking about paying it off for her and or making a payment I'm done a little better research, but I'm trying to get Margaret pop will I've heard about a ladybug being that I want her to feel faith that nobody would ever take her home. But you know when Pat that I would get the home she felt because the shot. There she felt like the rule, but I did partner to be other. Enjoy. No mortgage for the last years of her life and then it would also be an investment for my retirement when that time, yes, yeah, I think, of which there is a Lady Bird deed versus a traditional traditional what's called life estate deed where you are the owner of the property. In this case your mom the life estate holder also called the grantor life tenant means possession maintains possession of the home as long as they're alive, and that would be some of you did something you want to talk about with the estate planning attorney, you know, generally speaking, if you're concerned about Medicaid if she were to go into a nursing home or something you generally don't have to sell the home in order to qualify for Medicaid coverage. Obviously, upon the death of the individual.

The state may attempt to recoup from the estate. Whatever benefits it paid for care, including from your homes sale. But the bottom line is if you want her to be able to stay there. I think your next step would be if you want to pay it off in a lump sum to contact the lender directly with her permission, because they'll have to authorize it to get the payoff and then make sure that the it's paid in full and the mortgage is canceled and considered paid in full and then I talk to an estate planning attorney about how to use you either a Lady Bird deed or traditional life estate deed for estate planning purposes to make sure she's protected and that the home is protected and you could connect with a certified kingdom advisor in your area by going to our website moneywise and ask for a referral to a godly estate planning attorney there in Winterhaven to give you the best counsel. We appreciate you thinking about your mom. You're certainly on the right track here. It sounds like you are a wonderful daughter just really wanting to be there for her and that's a great great thing. I let's go quickly to Cleveland, Ohio Jerry are to be our final color today. How can we help about my work. I have a full-time job, but I worked independently and Amanda can't contract what the auto automatically go. He whatever it might get when I retire or when I file my tax year are you something that I should be doing it well is a self-employed individual you pay Social Security taxes on your 1040s in W-2 income. Part of that paid by your employer but you, when you don't have an employer per se as an independent contractor you pay both the employer and the employee parts of the Social Security tax so the total self-employment taxes 12.4% of your net earnings of 237,000 and then you also have to pay Medicare tax on top of that of 2.9% of the total is 15.3 that covers all of the Social Security taxes, which means that that additional income is counted in terms of your total income for the. In calculating your Social Security benefits down the road so it's in added expense for an independent contractor, self-employed individual, but it is beneficial because you'll enjoy the benefits you get to that season of life. We appreciate your call today. Hope that helps. Let's get to do it for us today. Folks, so thankful to have you along with us. I want to say thank you to my team today. Dad Amy and Jim Henry was a secular call screeners today and thank you for listening moneywise live as a partnership.

The radio and moneywise media this is the program we apply God's word to your financial decisions come back and join us next.

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