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Early Mortgage Payoff

MoneyWise / Rob West and Steve Moore
The Truth Network Radio
November 23, 2021 5:17 pm

Early Mortgage Payoff

MoneyWise / Rob West and Steve Moore

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November 23, 2021 5:17 pm

What if there was a surefire way to put tens of thousands of dollars in your pocket, that’s completely legal, and not a get rich quick scheme—would you be interested? On today's MoneyWise Live, host Rob West will talk about the thousands you can pocket by paying off your mortgage early. Then he’ll address some questions on various financial topics. 

See omnystudio.com/listener for privacy information.

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Moneywise why there's a surefire way to put thousand dollars in your pocket completely legal just about what he could do would you be interested. Rob Weston know this isn't a get-rich-quick it's more like get rich slowly with all the money you save by paying off your mortgage early talk about that first that I have some great calls lined up but please don't call him today because we're pretty recorded. This is moneywise live God's principles guide our financial decision.

So the amount of interest the life of a 30 year mortgage should be all the incentive you need to pay off that loan as soon as possible. Let's say you take out a $250,000 or 30 year mortgage at 4% at the end of that term, you'll have paid almost $150,000 in interest making the true cost of the home closer to 400,000.

But let's say, with 25 years to go you decide to put an extra 200 a month against the principal that will actually shave five years of payments off and you own the home free and clear and just 20 more years the potential payoff for getting rid of your mortgage early is huge and it really needs to be a priority in your financial decision-making. There are four steps to getting there that I want to unpack today. First, you need a spending plan, not just because it's a good idea and everyone should have one.

Which is true. You need a budget because you can't start the process of accelerating your mortgage payments without one and setting up your spending plan is now easier than ever with the moneywise app uses the tried-and-true envelope system to make budgeting easy. It will track your spending and reveal things that you can cut out to free up more cash after paying your bills moneywise up as a free download and you can download it anywhere you get your apps to search for moneywise biblical finance. Now the next step is to determine just how much of that extra cash shall apply to your mortgage but you can even make it a budget category all by itself or by mites and envelope. Remember that even $100 a month extra applied to the principal on your mortgage could shave off a couple years worth of payments so you'll want to put as much as possible into that extra mortgage payments category that you may start to feel deprived because you've cut out a lot of your fun spending. It helps to celebrate milestones along the way so that a special dinner out. Maybe whatever you paid off another thousand dollars and mortgage principal just to keep celebrating with in the budget. The next step is something anyone can do. Even if you been thinking up to this point that you have no surplus cash to put on the mortgage.

It's using money that comes your way outside of your normal paycheck. Some call it found money or mad money that make a commitment to put that unexpected cash on your mortgage principal as well as the surplus money from your budget. But where does this extra money come from well it could be just about anywhere. Over time, payroll work, bonus money from work you do on the side, perhaps a tax refund gift money in cash you get from selling things that the trick is to apply that money to your mortgage principal as soon as you get it. I don't think of it as bad money that you can spend anyway you like and don't let it sit around tempting you if you haven't set up an online account with your lender do that now most lender websites make it easy to apply extra payments to the principal just by clicking a button or two. By the way, while you are logged in, you'll be able to see the running balance of your principal keep track of it.

Watch it go down as you make those extra payments that will help you stay motivated and again celebrate your progress are just one more thing left to do, and it's really something you can do it any step of the process. Cut the fat from your budget. You may think you don't have a dime left over at the end of the month but you really don't know. Unless you cut back everything you can. Let me give you a few suggestions and we mention a few of these before I cut your cable or satellite service, and go with the streaming package you perhaps can save 50 or hundred dollars a month just doing that alone but look for free entertainment in your community. The library is a great source of information. Take a break from eating out hits the rear family that can't save $100 a month by cooking more meals at home, then here's a big one go here without buying new clothes that would probably save hundreds of dollars but you can probably come up with some great ideas yourself if you're intentional about it so you can save money that can be applied to that mortgage. By the way, the sooner you start the more money you'll save that can be put to better use. Proverbs 21 five says it plainly slow and steady plodding prosperity and that's over talking about here, diligent, steady plotters, and let's get that mortgage paid off before we go to our break.

Let me remind you that we are not alive today, but we do have lots of good information coming your way. So please stay tuned. It's great to have you with us on moneywise live today but unfortunately today were not lives were pretty 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 started today by talking about the early mortgage payoff. What can you do to add a bit to your mortgage payment every month. Keep in mind with an amortized loan.

It's the interest is calculated on the outstanding principal at the beginning of every. So for a mortgage that would be every month. So as you pay down that principle, any amount you send over and above that mortgage payment is reducing the principal balance of when that interest is calculated. It's going to be less than you do that over a long period of time, perhaps making one extra mortgage payment a year. Even if you do it 112 a month or once a year.

When you get a bonus or a tax refund your to take a 30 year mortgage and cut it down to around 25 years.

In many cases. Now the question that a lot of folks ask is what what about paying off my mortgage versus investing in. Interestingly, I just read a study the other day looking at five-year stock market returns, and 10 year stock market returns going back to 1970, the S&P 500 compared to the average 30 year fixed rate and depending upon the.

Actually paying off your mortgage. The 30 feet year fixed rate one the majority of the time.

Now if you look at just those five and 10 year periods and miss some of those big up years especially 2009 and beyond. Obviously you're going to do better in the market but don't discount the fact from a purely financial standpoint that paying off your mortgage is a big deal now. The other reason people often site for keeping mortgage is the tax benefit but keep in mind after the tax cuts and jobs act of 2017. It really reduced the use of itemized deductions including mortgage interest deductions because so many people are using the standard deduction.

In fact, 82% of homeowners have standard deductions large enough that the mortgage interest deduction isn't providing a tax benefit to them at all. So you have to factor that in.

By the way, that's just on the financial side of the house. The real benefit is the joy of being unencumbered, having the peace of mind the flexibility to respond to the leading of the Lord and the Holy Spirit as to where God wants to send you next and just being debt free brings all kinds of benefits that are nonfinancial soap prayerfully consider what you might do to accelerate your payoff of your home mortgage, assuming you're giving your living within your means and you've paid off consumer debt and you got that emergency fund. I would be thinking about accelerating the mortgage payoff. I hope that's helpful and we do have a few lines open.

Still 800-525-7000 in just a moment will talk to a Raffaella Chicago Corey and Omaha were to begin today in Chattanooga, Tennessee Teresa, thank you for your patience. I can help you will like all that really we have a corporate to carry on our mortgage and injuring $10,000 and devaluing around keep carrying extra dollars online on the print the ball and it cut the 14 year to 2008 year right now is Leon. He let your property. Add one we had $17,000 on that addict and interest-rate cut land property and the other one we owe $20,000 on a interest-rate leader can catering home and get out out the paradox of power interest-rate strength.

Currently her ears. All our gold at the homepage for that. I don't know and I'm trying to wake that laid out though.

Patriotic paid how to or I'm really kind that I don't know what do right now. Yeah well I can certainly appreciate that because as I said a moment ago in just the example I was giving about saving and paying off your mortgage versus investing. I think the same applies here that there's the purely financial side of this equation. Teresa, as you calculate the total interest you're going to pay on your home mortgage or domicile versus investment properties and a higher interest rate and clearly you know you typically want to pay off those higher interest rates.

First, now here's the exception to that is I look at those investment properties in the sense as a business.

I mean it's profit-making endeavor versus your home, which should appreciate over time, and clearly we've seen a rise in the housing market as of late, so just about every home is appreciating, but it's it's not truly an investment, because it's where you live in the definition of an investment is when it accomplishes its purpose from an investment standpoint you'd sell it, move on to the next one. Well, this is not how we approach our homes, we want to be wise about buying a home that we believe is good appreciate over time, but it's not purely an investment which these other properties are so I like the idea of you prioritizing the payoff of your home loan even at the expense of perhaps some additional interest that would be paid because when you have this paid off free and clear you own your home and you get the peace of mind in the security and the the flexibility if you will, of knowing that you have that home unencumbered and then we can look at these other properties just as we would evaluating any other investment or business are they working from a cash flow standpoint, you know, after you service the debt on them, which is an expense you would associate with the running of the business.

What kind of income are you pulling off of it and then clearly your building equity over time.

As you know, you pay it down whether their income generating or not. So I like the idea of you paying off that home feeling really good about that and then taking that extra money and using that to pay down the. The rental properties are the other investment properties as a secondary goal. The only exception to that would be if you and your husband really think and pray through that and you just don't have a conviction about being debt free. You're willing to take on a little bit more risk and it's more important to you just to save every possible dollar from a financial standpoint on the interest but apart from that, if it were me I would want to know my home was free and clear. First, does that make sense though where I'm having the struggle knowing that I had known paid for is what my whole entire problem is not making the agent so that help a lot it really fair units of Fairpoint and and I would actually align with that quite well and and we all bring to the marriage relationship different money personalities different bands money was handled differently.

Growing up, you know, some tend to be spender something to be savers and a lot of that has to do with just how we've seen money handled and how God is wired us. But I think together, you will need to appreciate each other's perspective and I think prioritizing the whole mortgage even at the expense of the bit more interest. It is a pretty good idea.

I can tell you this Teresa in all the years I've been doing this I've never had anybody call and say I paid off my mortgage last year and I've regretted it ever since. I just never cut that phone call I think you will be delighted when you do that okay Lord bless you and thank you for listening going today. We appreciate it. Well folks, you know, this is where the rubber meets the road because you know as we think about our role as stewards of God's money. It's not just about the money right, it's about what is God leading us to. How can we take his resources and steward them in a way that honors him and allows us to experience everything he has for us. Remember money is a tool to accomplish God's purposes and it says will value it says where we placed our trust. How you handle it when you hold loosely to make sure the following is much more money was back to the program on Rob West. So glad you're along with us today. Today's program is prerecorded, so I would encourage you not to call it but sit back and enjoy. Get some great questions coming up before we talk to Raffaella and Daniel, and Corey and Peggy, let me mention moneywise live is a ministry of money was media on Moody radio and we can only do what we do through your generous support. So if you consider yourself a part of the moneywise family.

Would you consider a financial gift, certainly beyond the giving you're doing to your local church and after prayerful consideration if you decide you'd like to give to support our radio broadcasts and are moneywise coaches in our moneywise Alpine all the content we bring you on the web, but we would certainly appreciate it just sent over the moneywise live.org, click the donate button and we would certainly appreciate it, especially in these lean summer months as we try to meet our own budget month-to-month that we could certainly use your assistance again moneywise live.org just click the donate button. It's quick, easy and secure and we would be grateful back to the phones today Michigan. Peggy is calling and Peggy understand you have a question about well actually it sounds like you paid off your mortgage is all right. Absolutely yes I want to talk about because to encourage people to do that. My husband and I got married in January 1986 we purchased a home at a price of $100,000 that would mark down 200,000 because of its high maintenance yard lights and stuff 10% interest.

So we had 20% down, which meant we were mortgaging $80,000 at 10% it would've taken us 30 years.

We pay our house off my pain on the principle I got the amortization schedule to prove it at the trophy we paid off a little under four years by taking every extra cent that we could save input into what to do that if we hadn't my husband passed away four years ago we hadn't done that only would've been paid off. The year before he passed, and it was the best thing and I'm still living here and it's the greatest security in the whole wide world and I would absolutely especially with the low interest rates now that would be easier to do and it was it's been incredibly knowing that we have the security of our home.

Yes. Will Peggy I so appreciate your testimony. I'm sorry to hear about your husband's passing, but I'm delighted to hear that by following biblical principles that put you in a position where after the Lord takes him home. You have the ability to continue to fund your lifestyle and having this home paid off free and clear.

I'm sure is just been a huge blessing. How did you all do it. Did you just limit your lifestyle and take extra that you had each month and send it along with the payment did you send it out.

We really didn't need all that much in terms of furnishing the stuffy because between him and me.

We had everything we did have to buy a dining room set and stuff but we had one car. We worked different shifts so we use my car which was newer and that I gas mileage and stuff that we did that and he didn't like to go out to eat. Yet we didn't do that much and we just didn't do the frill and every after stent went to that, and well, and we sacrifice in the short term for long-term benefits because you all had a vision of being debt-free and unencumbered, which makes those short-term sacrifices just a bit easier. You reap the benefit and you been heating the Council of Scripture. These are the Lord's principles and he gets the credit for it and we appreciate you sharing the word of testimony today. I know Peggy, it's been an encouragement to many who been listening to what you shared today. Lord bless you. Thanks for listening and calling today.

We appreciate it on to Chicago, Illinois Raffaella, thank you for holding.

How can I help user my soul and all that we ate all wanted no ear six-month limit set of high and I wanted to see how I can weaken and back over mention any contractor ration and I know I think the programming will create a retirement through the company so just much that my question well I love that Rafael because you obviously see that the Council Scripture here as well. You've been living modestly been attacking dad and now you got a lot to show for you are completely debt-free and I love the fact that even those rental properties are debt-free, which is good to be a huge blessing down the road you know as we think about this as stewards of God's resources.

You recognize folks you were all in different places. Some of you listening right now are really struggling financially, and others have a surplus in the key is to find God's heart and plan for us to manage whatever we have, however much or however little for his glory and for his purposes, and you don't Raffaella as you look at the five uses of money because there's only five things you can do with money you can spend it on your lifestyle. You can pay taxes, you can pay down debt. You can save it or you can get it on the great thing about what you're saying here is you've eliminated three of the bucket summing you're not paying any more debt that's gone five uses of money are down to four done so if you want to increase your lifestyle that one's gone, the taxes get even better deal. Once we begin to give more but not to pay more taxes so really it comes down to just two uses of money is all that you have left. Do I want to give more or do I want to save more, or both, and then how do I decide where and when to do that and you know that's the beauty of being able to manage God's money this way is to be able to say, Lord, what would you have me to do and I like the idea Raffaella setting a financial finish line saying no and there's a point at which we've accumulated enough or were on track to accumulate enough so I would say do some planning with a certified kingdom advisor there in Chicago, particularly around retirement and any other savings goals.

You have to determine how much is enough and then set up that retirement plan like a self IRA, simple and individual K to get that done and then safe and perhaps take a bit more money and put it away so you're on track with the rest you can Your lifestyle. You can Your balance sheet and begin to give Polaris that's the real joy that we have when we get to this point so I do some planning, particularly around retirement and then make the decision on how much to save. We appreciate the spokes. Monica just this is moneywise live with Rob West hey if you hear a phone number mentioned today. Please ignore that number and don't call us because today's broadcast is a reprise addition. But we think the upcoming information will help you and make you a wise steward of what God's given so please stay tuned. So delighted to hear from so many of you today. All the lines full but upcoming is the Joseph asking about getting rid of PMI. Melissa wanted to know when to pay off those student loans. Daniels debt-free looking to build a home want to know where to put the cash he's saving. But where to go next to as a writer if I said that correctly in Cleveland. We appreciate your call today. How can I help you as a writer you with this all right looks like we may have lost her momentarily. So let's move along Daniel in Chattanooga, Tennessee Daniel, thank you for your patience. I can help user my call right now I recall it debt-free and talking castaway right now.

We just got an savings account and I think and would be better to put that money and mutual funds and DD or leaving yeah so did you say you're looking to build a home as I write Daniel, are you still with us. I believe we lost Daniels just based on what he shared in the notes here for my producer debt-free and saving to build a home, I like the fact that you've got that in the savings account. Daniel, that's the place for it to be, you know, keep in mind with money. We are looking to deploy. I would say in on less than 10 years, certainly in less than five years.

We don't have that invested because the others just too much risk there. Your focus with money that has that kind of time horizon is all about the return of capital, not the return on capital so you want to make sure the money is there when you need it so you can build that home-based on the right timing for your family and construction prices and when you're ready to dive into that when you've got enough saved so I would just simply say, even though you're not making a whole lot in the way of interest Daniel.

I really like the idea of you parking that money in savings. Assuming you're looking at a time horizon of I'm to say less than seven years. If that's the case, leave it right there. I like Ally Bank or Marcus or capital one 360 you get about half a percent right now.

I expect that to go up over time.

The good thing is, no fees, FDIC insurance up to 1/4 of $1 million per account holder and type of account and you can link it right at your checking account when you're ready, you'll know that it's that there and if were in a recession a couple years from now that that I know we will be, but the markets and economies are cyclical, you won't have to worry about that money being down quite a bit and then feeling like you can't pull it out at that point.

I hope that helps.

We appreciate your call today.

Let's go to Illinois next Melissa, thank you for your call.

How can I help you tell your grad school and working part-time light double, but I don't currently have my neck to fill out here right I have not found any and grill and sounding like getting a saving account but very inconsequential interest rate. So my question is with my long article that I just got now, not really knowing what they're getting in terms that don't forget or not you after graduation here. Yes, very good to give me a rundown on the balances again Melissa, both of the student loans and the savings huddle around 19,009 Carol saving it up like ending to tell them it's 30 30,000 okay and how much do you think you'll take on an additional debt between now and graduation. Okay, great. And what are your plans after you get out of grad school and you would you expect to be able to find work and if so what kind of range from a income standpoint, would you expect predictable I can find and looking out. QI can't get the that okay that's fine when here's the good thing when you you've capped it at 19,000 you're going to be all the way through grad school.

The average student is graduating from undergraduate four-year college with over $30,000 in debt, you're getting through grad school. 19. And even if you don't expect to be at the upper in a wage earning bracket you know with what you're seeking to do. You know I don't have any reason to believe you shouldn't be able to pay this off in 10 years, which would be the goal 10 years or less. Given that it's deferred right now. I wouldn't be focused on paying it down, but given that you had 30 you got 30,000 in savings. I would make sure you have at least 6 to 12 months expenses in the bank just given some of the uncertainty, and then at that point, I think you could feel free to begin to start to chip away at this so that you know perhaps in a let's say you were to take as much is 10,000 and put it against this to get it down to 9000 and you have a much more manageable situation. You could even it'll pay it down to 10,000 what's which is what's being floated at the forgiveness of lease one of the scenarios so that you know you you've started into your getting this paid off completely, but you still got a good bit available for you to be able to deal get launched and cover your expenses, especially as you move out on your own and look to get a job so I wouldn't be focused on paying it all off right now, especially since it's deferred, but I think going ahead and systematically paying it down as you're able to but making sure you leave yourself with at least 6 to 12 months expenses make some sense gives you plenty of flexibility and is gonna put you in a situation where you're not having to rely on any kind of credit cards. If you know something unexpected comes or you need to buy a car or something like that doesn't make sense. Okay, Melissa, God bless you. We appreciate your call today and great job. It's saving up a good bit of money and getting through a grad school with minimal debt. That's quite an accomplishment quickly to Cleveland's right. I believe your back with us. How can I help you all like to know I want to make a purchase. So my question is would it be better to make our case and paying it off. I made her aiming like they allow me to do because some bayonet on the deck store credit card or it would it be best to just take money out of my savings and get just make the problem with that is you know so many of these big-box stores, including the one that my note so you can be shopping at all for six months interest refinancing for home improvement projects over certain amount which sounds like a good deal the challenges is after six months of you haven't paid it off you get hit with interest for the entire period, which could range from 18 to 27% and if you don't have the money available today, there's a decent likelihood, you won't have it available then. So what I would prefer you to do as a writer is really just to limit your lifestyle go back to that spending plan. Try to really look at every spending category. See where you can cut back and try to create as much margin as possible so you can start putting that into a savings account so that once you built it up you can pay for these items with cash and you're not looking to get back into the situation where you're borrowing, hoping to pay it off, but if you don't get hit with huge interest bills so I'm been asking to delay if you can and then let's see what the Lord does is you are diligent in your saving appreciate your call today.

So much more to come. Just around the corner. This is moneywise live with God's word intersects with your financial life's great calls coming up just around the corner.

Stay with us. This is our final segment of the broadcast. We previously recorded. Thanks so much for being with us today and we hope you'll stick around and enjoy the rest of today's program.

We haven't taken emails today. We try to knock out quickly.

By the way, if you want to send this email. We try to get to as many of them each week as we can on the air. You can do that by emailing us at questions@moneywise.org questions@moneywise.org. Here's the first one from Sally and Jim were looking to buy our first home.

We know the housing market is incredibly high right now. Is this the wrong time to buy a boy I can really appreciate your concern there.

Clearly, the housing market is a bit red hot right now. Interestingly, the latest data says that nationally, housing prices are about 5 1/2% overvalued that you might say really only 5 1/2% and and that really is the national average in terms of how overpriced they are primarily because this is a rise in housing prices is driven by low interest rates historically low and real demand deal is millennial's look to buy their homes as they reach their 30s and their having kids that coupled with the many people now working remotely and having the ability to move out of small apartments to single-family homes combined with the fact that there is just not enough inventory. There's millions of homes less on the market than there is real demand for them and that's been pushing housing prices up now, given the incredible rise. We do expect will have a cooling of the housing market probably not any kind of crashing and there's not any systemic problems like we had in 2008 2009 with the housing crisis but is certainly a cooling-off, perhaps even a dip. So what does that mean well, it means that we certainly need to follow the principles we typically follow, which is don't buy your home unless you've got a 20% down payment.

I would say at a minimum, and then secondly, make sure that principal, interest, taxes and insurance payment is no more than 25% your take-home pay to start with but that doesn't replace really running it through your budget to make sure that it actually fits now I'm getting out of third one to that in light of the housing market, which is just simply make sure that if you're buying this home you plan to stay not just five years like we would typically say most experts are saying because of the housing increase the rise in prices is probably a good idea to think in terms of staying for 10 years. Just because if we see the housing market cool off, take a dip. Certainly don't find yourself in a position where you're losing money or it's upside down so appreciate your callers. Give me your email. I hope that helps. And again if you'd like to send us an email. You can do so at questions@moneywise.org RI to lutes, Florida Amanda, thank you for your patience can help you Roth IRA David out $42,000 in economic and broker an American find aggregate talk about Charles Schwab a lot until even looking at Charles Schwab and stock market that, but I didn't know that you Roth IRA other thing I didn't just stock market Prickett that like you can buy gold and silver. But cash yeah will you certainly can put casket that's a you make the contribution and with gold and silver you. You would typically buy that through what's called a tracking stock exchange traded fund, which just tracks the price of the underlying precious metal and rises and falls with the movement of gold you know there are ways to put other asset classes in IRAs, namely through what's called a self-directed IRA where you have to have a particular custodian but then you could even buy real estate inside your IRA, but I think you know as you guys are looking to build wealth for the long term. You got a great start sound like you got a young family heard that sweet little in the background 42,000, and a pair of IRA Roth IRAs. That's great. What you should be looking for is just good long-term performance with high quality investments American funds is a great fun family and you could find some great funds there I mentioned often Charles Schwab intelligent portfolios or betterment or the Vanguard advisor just for those folks were getting started in looking for a low-cost, diversified approach to investing where they're not trying to pick a particular mutual fund and you know they're kinda counting on the success of one manager, but instead they're saying we just want to capture the broad moves of the market, which is what indexed ETF's.

Do we want to pay as little in fees as possible. And that's where these Robo advisors for folks and I would say, with investment open vegetable assets of less than 100,000 really can shine and do quite well for you. So if you want to check that out as a comparison again. Schwab intelligent portfolios betterment 12 front Vanguard advisor, they'd all use indexed ETF's to give you a good cross-section of the market, international, domestic, small-cap, mid-cap, large-cap, even some bond exposure, but probably very little at what I believe is your young age and then you would just kinda capture the long-term moves of the market and you wouldn't be counting on a fund or even an individual stock which would make you two highly concentrated dissent make sense.

No matter how light Charles Schwab intelligent I'm part of the layout. I can't build around the net that an essay I get appertaining data IRA economic and trading at two for certain amount between Karen, that's exactly right. It's you not limited in the number of IRAs or accounts you have, as long as you don't in any one year exceed the end annual contribution limit so you could move it all portion of you can open a separate want to move a portion over or you know, as I said American funds is nothing wrong with that. So if you pick a good high-quality stock mutual fund from American funds. I think you could do quite well. The last resource. I'll give you is sound mind investing.org and they have a great strategy on investing through mutual funds.

That's real simple in its biblically-based sound mind investing.org. I think you'd be real happy and looking at that as well. We appreciate your call today.

All the best to you guys as you continue to save for the future to a Miami Florida organ itself just a bit.

Linda, thank you for your call. How can help right now all I now when 15,000 in their and I also have the retirement fund.

I'm looking at list about maybe a little about it. 600,000 and that whatever you apply where to point where I should take the money out on the 457 payout condo market wicket.

Now that he had not doubt that also trying to find without talking to someone we Got the Boat but Will Be Handling My Retirement Fund. Debbie Was Talking about, but I Wanted to Set My Retirement Money for Great Coming Every Month You Make Sense of How Far off Are You from Retirement.

Linda January Next Year. God Will Okay Very Good Well Here Here's the Thing. You Obviously Prioritize Saving for the Future You Been Disciplined and That I Love the Fact That You Build up Quite a Bit of Money between the 457 Deferred Comp and the Other Retirement Account That You Have and I Love You Entering Retirement Debt-Free Including Your Home. You've Only Got 60,000 Left Gear Which Is Less Than 10% of the Investable Assets You Have for Retirement. So What Might Make Some Sense Is for You to Go Ahead and Pull That out over Two Tax Years. Perhaps You Know One Half of It in 2021, One Half in 2022. It Would Be Added to Your Taxable Income. So Make Sure You Plan for That but the Benefit Is That You Would Be Completely Debt-Free, Which Reduces Your Lifestyle Need the Monthly Expenses That You Have.

Which Means You Need Less so You Be Pulling Less Out Of These Accounts Moving Forward on a Monthly Basis Because You Because You Said You Want to Create an Income Stream from the from These Accounts and Let the Investments Replenish What You're Taking out I Think That Would Be Great. The Key Is to Do Your Budget and See What You Need. Ideally, You'd Only Need about 04% of These Accounts Each Year. But If You Have the Let's Say 715,000 and We Take out 60,000 over the Next Two Years You Still Have 655,000 If I Heard You Correctly, Which Would Throw off about 26,000 a Year and You Should Be Able to Replenish That with a Focus on an Income Portfolio. So, If That. Plus Your Social Security Meet Your Expenses without the Mortgage Then You're Really Good Shape and You'd Still Have Access to the Money.

If You Ever Needed It for Let's Say Long-Term Care or Medical Expenses, Something like That. As Far As an Investment Advisor Goes, I Would Be Not Necessarily Looking at Buying an Insurance Product like an Annuity for This I Be Looking for Somebody to Manage This Money with a Focus on Income and Capital Preservation and I Would Look for a Certified Kingdom Advisor There in Your Area There in South Florida Just on Our Website Moneywise Live.org and Click Find a CK and I Hope after You Interviewed Two or Three You Find One That's a Great Fit but It Sounds like You're on the Right Track.

I'm Excited for What God Has for You in This Next Season of Life. Linda Be Prayerful about Where the Lord May Reassign You As You Transition Out Of Paperwork Because Remember Our Calling Doesn't Have an Expiration Date on It so We Want to Be in Service to the Lord throughout the Whole of Our Life, but That's Going to Change Look Differently over Time, and so Your Job Is to Figure out What That's Gonna Look like in This Next Season and I Can't Wait to Hear What That Is.

Thanks for Your Call Today. Well Folks, I Think That's Going to Do It for Us.

It's Been A Lot Of Fun Today and We Started Today by Talking about the Benefits of Paying down Your Home Mortgage and How You Can Do That What It Looks like to Systematically Add Some Money to the Principal. We Talked about Paying down Student Loan Debt That We Talked about to Giving Talked about Just a Whole Host of Issues and Here's the Great Part Is That in Those 2600 Verses We Find God's Word.

We Find Principles That We Can Apply to Our Financial Lives That Are Always Right, Always Relevant, and They're Never Going to Change Moneywise Live Is a Partnership between Moody Radio and Moneywise Media Let Me Say Thank You to My Amazing Team Today Dan Anderson Is Executive Deb Solomon Producing Today and Mr. Jim Henry Providing Research Next to You for Listening Come Back and Join Us Tomorrow Will You Will Be Here with Another Edition of Moneywise Live


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