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National Debt Crisis

MoneyWise / Rob West and Steve Moore
The Truth Network Radio
October 13, 2021 2:15 pm

National Debt Crisis

MoneyWise / Rob West and Steve Moore

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October 13, 2021 2:15 pm

With our national debt soaring to nearly $28 trillion, it’s easy to understand the concern that exists about a looming debt crisis. On today's MoneyWise Live, host Rob West welcomes economist Jerry Bowyer to discuss what this high level of debt means for the economy and your future. Then Rob will answer your calls and questions on various financial topics. 

See omnystudio.com/listener for privacy information.

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This is Damon Baxter and I serve as business development director for MIDI radio. The only reason were able to spread the gospel of Jesus Christ on the radio is because of financial support from listeners like you. We also have businesses support us to like United States mortgage faith in family is at their core, it's why they choose to be such a close partner with our station is why they specifically advertise on Christian radio stations across the country. It's wife, father and son, John and Ryan still lead the company to this day. Check out United faith mortgage and their direct lender advantage@unitedstatesmortgage.com thanks to you and to United faith mortgage for supporting beauty radio United faith mortgage is a DBA of United mortgage Corp. 25 Millville Park Rd., Melville, NY license mortgage backer for licensing information, go to an MLS consumer access.org corporate MLS number 1330.

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This is Damon Baxter and I serve as business development director for MIDI radio. The only reason were able to spread the gospel of Jesus Christ on the radio is because of financial support from listeners like you. We also have businesses support us to like United States mortgage faith in family is at their core, it's why they choose to be such a close partner with our station is why they specifically advertise on Christian radio stations across the country. It's wife, father and son, John and Ryan still lead the company to this day. Check out United faith mortgage in their direct lender advantage@unitedfaithmortgage.com thanks to you and to United faith mortgage for supporting beauty radio United faith mortgage is a DBA of United mortgage Corp. 25 Millville Park Rd., Millville, NY license mortgage backer for licensing information, go to an MLS consumer access.org corporate MLS number 1330. Equal housing lender not licensed in Alaska, Hawaii, Georgia, Massachusetts, North Dakota, South Dakota and Utah. Today's version of moneywise. Life is playing recording so our phone lines are not during his presidency, Ronald Reagan said we don't have $1 trillion debt because we haven't taxed enough. We have $1 trillion debt because we spend too much and I am Rob West, the days of $1 trillion national debt would look pretty good today. It now stands at nearly 20 trillion here to discuss what that means for the economy in your future is economist Jerry Boyer. We have some great calls lined up but we will be taking your life calls today because we're pre-record. This is moneywise live biblical wisdom for your financial moneywise contributor Jerry Boyer is the financial editor@townhall.com and the author of the maker versus the takers what Jesus really said about social justice and economics and, as always, Jerry. Great to have you with us again and as always great to be with you, Rob, Jerry, as you well know, we cross the trillion dollar threshold some 35 years ago, now it's 28 or 29 times that depending on which debt clock you look at I want to begin today by just talking about how in the world we got here when we got here because where people who don't want to defer gratification.

We want what we want now and that's a moral problem in a spiritual promise funny just over the weekend I was watching Willy Wonka with my grandson and there's that scene where I think Brooks is now now now I want it now. Well, she's just bratty, so are we. We want everything we don't want to save, and then by we want to buy and then go into debt and that reflects itself in our own patterns as individuals and reflexive self in public budgeting. One of the virtues of the spirit. One of the fruit of the spirit is self-control and patience. We don't have those and nations that don't have those get that that's out of control. What, let's talk about God's word and what it has to say about dad. Of course, none of it's good but it's mostly about personal debt. Is there a biblical principle passages Jerry to come to mind that apply to nations in this area of debt. Well, yeah.

And I do wonder sometimes if because evangelicals like me.

We started movement started with having a personal relationship with Jesus that's in the 70s. That's what people probably have need. You have a personal relationship with Jesus. Maybe we go too quickly to think that everything in the Bible is about individuals and not about nations when when you read the Bible seems like it's about individuals and nations so I think a lot of these passages in Deuteronomy where you know you will lend to many nations and not borrow from them. Those are probably about nations, not individuals. So I think a lot of the biblical material about that is about nations but also applies to individuals. We tend to think it's about individuals, but it also applies to nations whichever one it is.

There's a presumptuousness to debt debt is II want it now. We Artie talked about that and God will give me the earning capacity in the future to pay back the debt. Presuming upon that the sovereignty in the providence of God, yeah. Very good. Jerry 28 trillion certainly sounds scary but another figure is worrisome as well hundred and 30% of GDP, your gross domestic product where we're at right now is that the real problem yeah the on the numbers like trillion are scary but we also have an economy that's about 28 trillion right so mean you get with advisors a lot of someone comes and says I have $280,000 in data mining trouble what you might say what your income owe $30,000 a year yeah your trouble. Oh I make $2 million a year, probably not until we should deal with the debt, but your earning can handle that level of debt so you have to compare the borrowing to the earning and that's what the debt to GDP ratio does. It's essentially our ability to pay off that debt. If we need to with our economic output and something bad happens around 90% to 100%, there was a book this time it's different. Several years ago that looked at a whole bunch of countries around 90 or hundred percent debt to GDP ratio economy start to slow down and here's the problem. If the earning the production slows down, but the borrowing doesn't, then the debt rises even more as a ratio to your economic outcome. So you can't get caught up in a death spiral. And that's what happened with some of these European economies in 2010 2011. They got caught up in a debt spiral word, 130% so just after this break will talk about whether that's something that should concern us is a death spiral in our future. Also, Larry Burket years ago said we were headed for an economic collapse. We were only at 30% national debt to GDP, then why didn't it happen and what we need to know about the days ahead. All that and more.

Just around the corner with Jerry Boyer this is a reminder that were not alive today, but we do have lots of great information coming up for the rest of back to moneywise live Rob Webster hose joining me a good friend of economist Jerry Boyer is with us. This segment talking about the national debt, which by the way, stands at nearly 28 trillion is that a cause for concern and where might we be headed. Jerry just before the break, you said something bad happens. I think to go to that when we get around 90% of gross domestic product to national debt where the hundred and 30% so is that bad thing happening here in the United States and what might we expect in the days ahead. Yeah, I think that bad thing is is happening now there's some accounting stuff here like what are you counting his debt because some of that we owe to ourselves like the Social Security system. So if you consolidate that it's a little lower.

It's closer to 100% but it's still bad.

And yet we seem to be in this cycle now never coming out of this terrible covert crisis of the economy is always good to grow fast when you shrink 30% but in terms of our long-term growth rates really since 2008 2009, 2010 been substandard and so debt rises the debt to GDP ratio ratio rises when the debt is growing faster than the economy and the debt has been growing faster than the economy. So we are stuck in that now it's not destiny were Christians we believe in free will and human accountability is not faint you can get out of it that you know that after the Napoleonic wars, Britain had a worse situation, but they got their act together to some degree that a religious revival.

They kept their spending low, they cut spending dramatically. They went back on the gold standard and they actually grew their way out of that debt Ronald Reagan because of his policies strong dollar policies and growth policies was able to kind of grow our way out of the problem that Larry Burket talked about. So it's not impossible.

It's just like any other bad behavior or any other advice. The more times you do it the harder it is to stop. There's no question about it that you mentioned Larry Burket. I did as well. Many of our listening audience is familiar with the book he wrote called the coming economic earthquake.

As I said at that point national debt to GDP was at 30%. Now were it somewhere between 100, 230% depending on how you calculated. Why didn't that happen. Jerry would Larry was talking about what I think it didn't happen because national debt to GDP ratio of the third is actually fairly sustainable.

If you're a country that has its act together for the most part and you have good growth policies and you're not kind of a Third World autocracy where you nationalize property you can do that. You're a pretty good credit risk. So that was a problem but that level of debt was not necessarily a problem. Another thing is that the US was doing a lot better than the rest of the world. The communist world was no competition for us to economically and Europe was mainly socialist, so people might not of light, the dollar they might've thought we are printing too many of the more they were borrowing too much, but it was better than the alternative, so investors kind of stuck with the dollar down from historical standpoint, Jerry debt was also high in 1946 after World War II and we grew our way out of that, what can we learn from history well after World War II, we certainly had a lot of debt but we did something productive with the debt. We didn't pay people not to work. We pay people to destroy Nazi-ism, which is a pretty good investment. I also met the United States was kind of the last economy standing. So again, you could look at the United States and say well the debt to GDP ratio is 106%, but England's worse rushes like the whole world was worse. The worst of it to keep buying American bonds. The other thing is we made a conscious decision to go back on the gold standard which means that if we were going to spend.

We had to borrow the money we couldn't print the money, so we basically shut down the printing press to some degree because we guaranteed to the world that if you don't even like the dollars will give you the equivalent amount in gold.

Now we don't have a gold standard policy. Now we are not the fastest growing economy in the world. Now, far from it. Probably the middle of the pack and the trend is not towards an end.

The other thing is they did a lot of taxcutting after World War II, people know about this. But Truman actually got a lot of yell taxes in significant ways and were not doing that we seem to moving in the opposite direction.

So that's why the post-World War II boom with without inflation would not be my base case, so are we headed for a debt crisis or a default Jerry, where does this go from here.

I think we are. The question is when.

Certainly, some people were very early on an independent pick on Larry Burket is wonderful.

He's one of the founders of all of this movement that were part of a syntax. Some of the best people are early, they see the problem and then they see out ahead where it's going.

So I think we are headed towards a debt crisis but there are things that can hold back on it from happening now like some of the things I've mentioned, the United States has a high debt to GDP ratio but were eight from the top were not at the top so there countries that are much worse than we are. We got problems, but in many ways our tax code. Unless we get tax hikes is still more competitive than a lot of the rest of the world with a lot of knowledge in our economy so those kinds of things that kind of spiritual heritage that capital bits that some they are still a little bit were not the nation. We once were kinda delays when that might happen so I don't know what a trigger event would be, but let's say that in the fight over the debt ceiling's at some point someone says that someone with authority. You know what we can just default that would that could be the thing that got kicks off an avalanche.

What would a debt crisis or a default look like you're in your best estimation, the world would sell United States treasuries. They wouldn't want them anymore. And a lot of them are held overseas, and they wouldn't want dollars anymore because the dollars are there to buy the treasuries. So what that means is the dollar would rapidly decline in value, which means at export prices would go up very much, which would be inflationary. The dollars that their holding overseas would come flooding back domestically and those who start circulating again, driving up prices and we seen a little mini me version of this over the past year. Interest rates would spike because of the world isn't lending us money then were just lending to ourselves and will have a high enough savings rate and then the Fed would have a really tough decision to go to the crucible we can keep monetary discipline and go to the pain and come out the other side better. Like what happened in 7980 8182 or we just got to keep the printing press is going to avoid the pain and at that point what you have is kind of a slow death of higher inflation over maybe a decade and no growth.

So Jerry, what do we do with this. We got about 90 seconds left. We get out of the stock market like summer saying do we get out of the banking system.

What we do with what you just shared.

Yeah, I wouldn't get out of the stock market because the stock markets actually correlate with inflation much better than bond markets and nothing correlates more poorly with inflation than cash when people are scared to go to Castle catches the one thing that's guaranteed to lose value going inflation.

Inflation is by definition is a loss of value in cash, so what you do. I think you diversify historically diversifying in side united states but also outside. If we have US inflation then emerging markets. At times like that tend to outperform soap diversifying internationally and diversifying not just in paper into commodities. This is the stuff you do just basic biblical wisdom. We don't know the future for certain. So that's why we diversify. So what I'm hearing you say is yes were getting to some scary levels of data. Yes, we need to make the hard decisions as policymakers and legislatures to rein in spending and as God's people managing God's money. We need to continue to follow biblical principles investing for the long term, with proper diversification and trust the Lord at the end of the day is that it yes, and have enough margin so that when something bad happens you can be a source of comfort to your neighbors and actually help them financially and be a supporting structure because there to be scared and you can explain why it is that the Bible told us that things like this were a risk and we certainly shouldn't live in fear. Jerry Morgan have to leave it there today, but there's plenty more to talk about so will have you back real soon.

Thanks my friend economist Jerry Boyers been our guest today. You'll find his many insightful articles@townhall.com.

It's great to have you with us on moneywise live today but unfortunately today were not live or prerecorded 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 joining us on moneywise live biblical for your financial decisions on Western Coast team is taking the day off today so don't call Lynn. However, we lined up some great questions in advance will able to get to a couple emails today as well, but first to Akron, Ohio Rene, thank you for calling. How can I help you every day I'm driving in the car.

Your guidance and wisdom. Think thinking IRA pension plan that he received a couple your employer. They sent him 1090 and 1090 9R $886, but every quarter he earning you a couple dollars, but the fees and expenses are 20, $25 go down to $680 now and I I wasn't sure how to invite him to close this out. I would imagine there's going to be some fees or should he roll it over into something else.

He has no other investment young and just starting out, so it's essentially an IRA now is it right yet is auto rollover IRA okay. You know I'd love for him to keep it open yet. He doesn't need to be paying those fees with that balance because that's going to just eventually dwindled down to nothing, but I like the idea that he would have an IRA because you know starting young and starting to put away. You know, even 50 or hundred dollars a month building that up over time. That's really gonna pay some huge dividends for him down the road because the power of compounding is you don't. Do you think he would have the ability if you were to get serious about it. To begin, systematically contributing, or is this a situation where he's working on some other shorter-term goals. In the meantime, heard that yeah and just let them know. Listen, you know, this is this is a long-term play. But you know he's gonna be thrilled he had it down the road if more high school students who are working part-time in college students and newly married couples would get serious about beginning to systematically put money away even small amounts.

You know they would be just blown away by what that could grow to over time to fill. Keep it invested in keep their hands off. So what I would probably do Rene is encourage him to roll it will he'll open a new account new IRA at one of the Robo advisors are probably either Vanguard advisor or betterment and they have a solution where basically once the accounts open and then once the $800 or whatever is left is transferred in. Then he'll answer a series of questions through their web interface or app which are great and it'll build basically and indexed ETF portfolio so using indexes which are very low cost will capture the broad moves of the market. No international and domestic, and small-cap and large-cap, but it will be very stock heavy because of his age and that's what you want and then he won't. You know, try to pick the winners and losers.

He'll just get the movements of the market which you know will do well over the long haul and I think as you you encourage him to do that. Then when he starts hopefully a systematic contribution into this account from his savings account or checking account just builds it into his budget every time it hits the Council the account it will automatically be deployed in recent and invested in the same strategy and there's not any transaction costs so you know it'll be very inexpensive which allows him to keep the profits inside the account, which is the goal. So of the two that I mentioned are the Vanguard advisor or betterment in either one of those would be great and I think it will give him what he needs to. So that makes sense though I like that option a lot better. Okay good yeah and there there very much. I'm not sure he's a millennial but to fees and somewhere near there. The other very millennial friendly because they just have slick websites. Great Mark phone apps will feel very at home navigating them and they just make it really easy to systematically put money away, forget about it and you can because again it's not invested in a particular company or a particular sector. It's not like you're wondering well mall in healthcare.

So how's that doing Ramon technology well technology might be out-of-favor and you know like any given year does have to worry about that because he's invested across the whole market and so it can just grow over time and that'll give him a great place low cost to do some investing and I think you'll get excited about it too.

As he begins to see it grow and perhaps that will give them some incentive to put even more away so I checked those out if he has any questions or you do along the way. Give us a call back in Rene.

We appreciate your listening and calling today. Well folks love hearing about young investors people wanting to take God's money and put it aside. Which means of working to do that. We've got to live honestly would gotta dial in her spending and live on less than we are and which is really the key to every financial success in a quick email before we hit the next break. This email comes to us from Dan and Dan just simply says how do I strike the right balance between giving and providing for them for my family and a Dan II appreciate this email in question so much because I think it really is something we have to wrestle through it would be great if the Bible said what you need to live on 68.2% of your income and give the rest to go away but it doesn't. It really leaves it up to us of the first thing we have to do is recognize God's ownership.

The second thing we need to do is be underneath, saying, Lord, what lifestyle you called me to. No one else can define that for you and you certainly don't want social media or advertising dirt defining that for you.

You needed to find that before the Lord and I would just say error on the side of living simply, but once you build your plan, you say okay God, we thought you called us of this lifestyle you don't, you really need to start with the giving side and build that in first and then figure out how to live on the rest. And that's good to be a wrestling match throughout your life, especially as you get raises, and the tendency is to increase your lifestyle. We got a guard against that and make sure that is God raises our standard of giving not necessarily our standard of living. Along the way so you pray about it, begin to study the Scriptures are so much about money and possessions. New your mind and I think you do God's heart in this area and I'm confident he'll give you the answer to the balance between providing and giving start a much more to come on moneywise.

This is the program giving biblical wisdom. Your financial decisions help you stay with us will be back right back to moneywise live on Rob West here hello so glad to have you along with us today. We are not here because were taking some time off, so don't call him but we got some great question lined up in advance know you beginning with Rene in Canton, Georgia Rene, thank you for calling today.

How can I help you, thank you so much for taking my call.

I called back about another situation and you stopped and immediately prayed situation, and thanks to my question today is my question today.

Option will fail with better just okay that health insurance and retirement home where I can job job offer that I've been making about 20 or $25,000 more a year with no benefit on thinking to go that direction, but I have other people tell me.don't yeah well I think the key Rene is to calculate the benefits. The value of those benefits that you would be leaving behind, so you've got to get in there and look at okay as we compare these two jobs and then are you comparing it to the one that you have right now just keeping it. Is that really the other option.

Why have a job right now. Okay Kelvin, I have one sitting there waiting for me to option so you have the one that will be offering the 20,000 more without benefits and then what it what's the second option work in helping Sharon match three or four that dental data just regular and they would be able to tell you what the value of those benefits are so you know you could look at you give them to give you a breakdown of that first of all, you could also look at what you would need to pay to replace that on your own. So for health insurance. For instance, the most cost-effective way, which is not insurance but an affordable option to cover medical expenses would be a Christian healthcare ministries were you look at a medical cost sharing or if you wanted true health insurance.

You'd have to go out on the you know the market and find out what that would cost you and then you can quickly calculate the benefit of the 4% match and you could get to the value of those other policies, which is going to be insignificant total all that up and do an apples to apples comparison comparison of from those to you.

Obviously it's not just about the financial side, but you're gonna want to know what it's actually going to take to provide the benefits that you need when you're having to go out and pay for them yourself because you can't be without health insurance and you're going to need disability insurance, and you're going to need to save for retirement. So you've got to have the two comparisons to build a look at that and then look at the nonfinancial side and compare the two jobs and just see which one is good to be a better quality of life. The location the distance the hours it will all of that so wanted to start by doing those the comparison and see how that 20,000 stacks up against the valid, the true value of those benefits both as they lay it out to you what they're having to pay and then also the replacement cost which may be a little bit higher when you have to go out and get it on your own settle make sense. So start there and if you have any questions when you get to the end of that give us a call back and I'm confident that will give you some wisdom as you navigate that we appreciate your call today to New Hampshire Mark, thank you for calling today. How can help you around my call yet happy to go. Whether or not it makes a lot all our current mortgage loan mortgage loan is about 104.2% 21 years left IMAP were trying to pay it off in about seven years, wondering why so that we can avoid the conventional way that would make the bank will, why you know I'm not a big fan of that approach Mark just because he, like his can be a variable rate and we know rates are headed higher of the thing, I'd probably be more interested in you doing is looking at a new 20 year mortgage we can drop that rate by over point not increase the term.

In fact, you decrease it by year yeah give got a look at the expenses but I would try to do it for no more than 2% of the loan value so it would be talking somewhere around $3000, maybe four at the most. The key would be that you'd you never want to have enough in savings on the interest rate to be able to offset that in a couple years, you'd need to plan to stay in that home for a while, which it sounds like you are and when you have surpluses that you can add to the principal balance you could get, you know that going in the right direction so you could pay it off in the timeline you're looking for. In fact they could run an amortization schedule to tell you how much exactly you need to send extra every month or every year to get it paid off in the timeframe you're looking for, so I'd much rather you go that approach. I don't like the HELOC option. You know, even though the expenses may be less than the front end that variable rate could come back to bite you.

Okay your yeah and not to be a great option as well.

The key is make sure those expenses are in check, to no more than 3% of the loan value save at least appointed rather point and 1/4 and and then get the amortization schedule. Find out what it's can it take to pay it off as quickly as you'd like to do it. Make sure it fits into the budget and then I think that's can be the better option. We appreciate your call today. Mark up to Tammy and Davey Florida hi Tammy, how can I help you in about you and I work part time and then turning back now and then turn it back in. I can correct that a mountain out of what I get, you know, it is technically so if you claim Social Security retirement benefits within the previous 12 months at 62 or later you can apply for a withdrawal of benefits. You have to repay what you've received so far. As you said, and then they'll treat your application for early benefits as if it never happened that would then increase your benefits later. But you can only do this for 12 months. So, in my estimation. Tammy especially given what I'm expecting for the stock market over the next 12 months with 12 months with more tempered moderate returns just given how far we've come in the stock market in some of the headwinds we have like inflation.

I just don't think it's it's worth the hassle and the risk of something going wrong that would permanently lower your benefits just given you and I don't think you have a whole lot to show for it. On the upside, so if it were me, I'd probably pass on that and if you have the ability let those benefits continue to grow without trying to take them early and then pay them back.

Does that make sense all right. We appreciate your call today. Dammit. God bless you folks yeah that's what it's all about. We want to go into God's word. We will pull out the principles we want to lay that biblical worldview on top of the financial decisions we have to make every day whether it comes to saving giving paying down debt managing our lifestyle and setting her goals for the future. Want to run it all through biblical biblical lands because then we know we're basing it on truth and it's time tested the transcendent tax code, interest rates, all of God's word is always right and that's that that's what we do here and moneywise live just around the glad you joined us today for moneywise live prayer team is taking some time off today so don't call but we have some great questions that we've lined up in advance and I know you benefit will discuss today as we apply God's wisdom to today's financial decisions were to go back to the phones, Arlington Heights, Illinois Mary, thank you for your patience can help you all just I'm retired and I my job and it was part time because of my age and things like that been kind of hard to get someone to hire me. I can or what I need to work hours. I need to work anyway. I have some investment in our Roth IRA and I am not able to put out, and that I have no income site and I have about 20,000 fitting can't been there a while for night checking account and I've been wanting to invent it. That one I don't want to do is now invested in something that taxes are what not like going to the principal and I might lose money that you know what I'm trying to get advice for well taxes are going to be an issue because this is a Roth IRA. So this is tax-free environment so any gains would be nontaxable inside the Roth and then as you take any money out. If it some point you need to make withdrawals comes out tax-free. You are correct, you can make additional contributions without earned income.

So the question is where to invest it. I want to go back to something you said just a moment ago and that was if I heard you correctly, you don't want to take any risk you don't want to have the risk of any principal losses that correct well. I will have that I want to say it that sitting in the checking account and thinking Ellie could be making something somewhere that portion is not in a rock. Oh I see.

Okay, so that portion that's in the checking account you you want to make something on it but you want to keep it in as stable a coward doesn't have the ability to lose any money but you're willing to take some risk with Roth is that right right okay so with the checking account for that portion that's beyond your living expenses. You know just what you would keep in there to operate in a given month and then you'd be replenished with additional income.

The following month leave that in your checking anything beyond that, you may want to look at opening a high-yield savings account you'd only get about 1/2 of 1% but at least you'd be earning something and you could keep that link to view. If you do business online or you're comfortable with that. You can open an online savings account. There's no fees again. You get a better interest rate than you would with the brick-and-mortar bank you could link the accounts electronically and if you ever needed some of that savings or surplus you can move it over to your checking but it be FDIC insured by backed by the full faith and credit of the United States government and then you know that wouldn't have the ability to lose value and it would be there if you needed it with the Roth how much is in that account okay and that you're willing to put it to work but you probably want to be on the more conservative then would you want somebody to manhandle this for you and essentially build the portfolio for you or would you like to do a little bit of reading in with some guidance make these decisions yourself.

What what are you most comfortable with. With how you want to approach the management of that Roth will die in the neighborhood and everything that it just wasn't working out because I don't know the time that it was that anyway. Any money that I would had the fee for like now putting me down to ground out to comply. That was not growing basically well yet would depend on the time. That you were invested anything in the last two years should far better than you may be the one percent or 1%, you are paying if that's with the fee structure was set up.

Another approach would be to visit with our friends, of sound mind and the.org.

The sound mind in the newsletter and the advisory group, there could make some recommendations on some good mutual funds for you that would be you wouldn't have an ongoing management fee for that. So that would be one approach. Another approach would be to look at a Robo advisor so you could go to the Schwab intelligent portfolios or a Vanguard advisor Robo advisor solution and then use ETF's exchange traded funds based on the answers you provide to the questions they would ask they would automatically build a very low cost indexed portfolio that we just mirror the market indexes in a way that's consistent with your goals and objectives that would be probably the Schwab intelligent portfolios. The Vanguard advisor or betterment so I probably look to one of those two sound minded.org or one of those Robo advisors for the investments of the Roth just given that you have 60,000 you don't want to hire a money manager but you want to do something that's gonna put this money to work for you a fee in a way that makes sense for a fee structure standpoint is what I'm trying to say so I hope that helps. If you have other questions along the way, Mary, don't hesitate to give us a call and we appreciate you checking in with us on to Chicago, Illinois Rob, thank you for your call. How can help you listen I'm calling on my behalf of my brother okay that he's getting hundred percent support from the VA in terms of housing.

Should he be a hero. Should he decide he wants to do that okay, but he's has Parkinson's disease and he's really not these kind of on his last left Slim Shady, so to speak. He is reluctant. He's not always thinking clearly he's in the process of trying to get so is his will established in that kind of thing he hasn't been a good fiduciary doing any good fiduciary work. He has his home which is a bungalow in Las Cruces New Mexico. Okay, and his older brother elk raising okay and my thinking is a kinky. He has not got enough money to get 24 seven. Home but he's hemming and hauling about going into the VA residents and UPMC has some charitable interests that he likes take care of helping do research in New Mexico for people who have mental problems with mental problems and that my thinking is my thinking was, so that if he in fact had report of selling his home okay and earning the interest talk that he might be able to support his charitable issues which are very important, not just exactly sure that the wise decision or were you would go to find the best income generation for his home they took us about $80,000. I think okay and would he be willing to relocate into the VA housing at that point, I think there's one VA person who is helping take care of them now that himself, and they have a good relationship. My thinking is that since the VA would continue paying him that they could continue paying him to come and visit him. Spend time with him at the VA hospital okay will I think that's what it comes down to Robison the quality of life for him for whatever time the Lord gives and you know addressing some of those issues. First, because I love the fact that you want to help him honor his desire to be charitable and certainly you could take 80,000, and he could find an investment advisor think you're right there in in New Mexico that could help him turn that into an income stream and he could have a lot of fun giving that way. But obviously there are other implications to liquidating that asset.

And I think you just need to think and pray through that recognizing he was can have challenges, perhaps in making these decisions himself and so you just gotta prayerfully consider whether you think that would be the best option for him in terms of whether he's gonna want to stay there in his current residence, even if that means he's doesn't have his ability to be charitable, or would he be just as happy in this home and with this give him an even greater quality of life as he enjoys what time God gives him here. Despite his health challenges in giving some of this money away so in terms of where to go. I would be looking to an investment advisor to help at this point turning that asset that 80,000 into an income stream using a very conservative mix of stocks and bonds that that would generate an income, you probably want to be thinking in terms of about 4% a year which would be about $3200 so I think you've got to give some real careful thought to whether this makes sense from a housing standpoint before you do anything and that would be my best advice to you, but let us know how it goes and we appreciate you walking alongside him will certainly be praying for you God to give you some wisdom here on the Tennessee Mike, I just have about a minute left.

How can I help you all I will not want and out the amount and drop down deep in the month okay. Do I need to keep doing great. I'll probably go out to the truck first put all of that toward the mortgage.

The truck then we get that payment out of the way I'd say for the next car purchase and then take 100% of that and put it on the house.

That would just be my priority order stimuli will talk a bit more off the air would have to wrap today appreciate your call moneywise. Life is a partnership between the radio and moneywise media this is the program were God's word intersects with your financial life come back and join us next. I will do it all over again see them accomplish


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