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November 29, 2021 5:08 pm
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The Christmas season has officially begun.
As things start to get hectic, it's good to keep a sense of humor about the holidays. Rob Weston to help us do that. Steve Moore joins us today to answer a number of Christmas questions that others, quite frankly were afraid to ask him, but you're not that it's under your calls and questions at 800-525-7000: 24, seven, 800-525-7000.
This is moneywise live natural journey so terribly has plenty of time on his hands in retirement because he has been thinking about Christmas gift giving Steve welcome back. Thanks very much. Always nice to come back and hang out with you guys see there's some questions about giving that our listeners have been wanting to know the answer to that. I think you're the guy to answer them. So I move through these quickly as many as we can. Starting with is it okay to regift a fruitcake all by all means. I mean what else would you do with it.
I've heard that some people actually partake of a fruitcake but but that requires a future dental work. Perhaps having your stomach pumped out but definitely regift that for now. I know our rich arousal. Our engineer loves fruitcakes some special brand fruitcake that I can't remember the name of but I've just never met a fruitcake that I liked very much and apparently the age well. It has something to do with how their put together a gift and you do the same Rob age well. Thank you for very much.
Sorry. Question number two multicolored lights on the Christmas tree or white. Our first argument are the first year when we were married we grew up and Marsha Marsha II met Marsha my my first wife and my only wife she grew up with white lights little twinkly ones I grew up with colored lights, the larger size bulbs and we actually had disagreements about this. Not to mention the size of the tree and only crazy stuff it's embarrassing to think that we argued over these things and I was the pain in the neck. So don't mess up Christmas and the real reason for the season by arguing over those silly things okay. I get that question number three. Do you give your four-year-old granddaughter. Every gift on her list.
What I mean, what business is it of yours. So yes yes is a living is my four-year-old granddaughter that lives just a few miles from me and she has me wrapped around the proverbial little finger whatever she wants, she gets. Now this is a biblical but what can I say she's so pretty and so cute and afterward done. I've got pictures, I can show okay. I know you always do cards or carolers come to the door more you answer it. Do you give them cookies are saved by pie give them that fruitcake get all my chainsaw. I cut it into multiple things this morning and I think here. I'm trying to sleep and my lawn. I wish there is would I wish carolers would come.
My life had it happen a couple of times in my life, but it doesn't seem to happen much. I would love it and I know you would. Sorry my address here as we run out of time. This should we want to keep Jesus at the forefront name is Steve payment.
Your best idea to do that, but it really good and quality giftgiving.
I'm thinking of organizations, ministries that all have gift catalogs on their websites. Samaritans purse operation Christmas child. The Salvation Army compassion international heifer.org where you can actually buy a live animal heifer, a cow, a pig, a flock of chickens to help lower income farmers around the world establish a business in their little locale and this information is is all available on the website and it's a great way to actually maximize your giving and help someone in the process. I think that's great. One other idea would be to give your kids or grandkids a certain dollar amount. The instructions are, they have to give it away and tell you what they did with it. Some ground conversations for you and the kids or grandkids after Christmas. I love your former cohost now giftgiving expert on the program today. We hope you and the Moore family have a blessed Christmas this year say and to you as well. Thanks very much.
Your calls and asked 800-525-7000. This is moneywise live be right things are doing is moneywise live great to have Steve for the day is just talking Steve provides light and some joking along the way. So a lot of fun as we think about Christmas and the Christmas season that is now upon us and how we can focus on the real meaning of Christmas and enjoy family and friends and festivities. Along the way. We also want to bring our financial wherewithal with us so we don't end up with a bunch of debt in January will try to help with that.
Throughout the course of the next month.
As you prepare for Christmas and think about honoring God with the stewardship of his resources as well. It would love to take your calls today.
We look forward to hearing from you with anything that you might want to engage in conversation about financially speaking, here's the number 800-525-7000. That's 800-525-7000 and whether you thinking about saving for Christmas or paying for Christmas or anything retirement credit scores, debt repayment, perhaps you can give more generously whatever's on your mind today would love to hear from you again. Lines are open 800-525-7000 must begin today in Memphis, Tennessee hi Kelly, how can I assist you know Lord that are in good working out how to prepare, now I'm down to get jacked making nearly 3 IRA that will mature inking about $8000 payment back thinking about beginning to withdraw from the IRA. I can find a job and get some regular income coming in or what parent might have a nap and I can go ahead and hire a whole lot that I am only thinking what I'm doing. I think children just now got down like that, not depleted not let their very good well I understand how homes have a way of bringing as you said unforeseen expenses and repairs.
That is to be expected and I like the fact that your thinking about how you can build a budget that sustainable and still enjoy this season of life. And I know how enticing grandkids are don't have any yet myself.
My kids are still at home but been around grandparents long enough to know how quickly they can really become enthralled with spending time with their grandbabies. Let's unpack this just a bit more financially and I appreciate the background you said you have about 8000 in an IRA you have quite met in your 401(k) that you been saving up for a long time how much roughly 400 okay. It's probably more than that, but I agree, let's start there and so you are without a job right now and yet you're paying your bills. I understand your living modestly, you have no debt, that's great, that's good to make this a lot easier to solve for his equations. Have you been living purely.
Then Kelly off your emergency reserves. Okay so because that's now depleted at this point, you either have to get a job or you're going to have to start pulling from one of these retirement accounts correct okay very good and would your plan be easy to work just enough to cover your bills and try to delay taking Social Security as long as you can, or were you thinking you might begin to pull from the retirement accounts. Regardless, you know, he even is secondary to these repairs that are needed. No right now. I think maybe actually see the point. Would you try to take Social Security as soon as 62 or would you just pull it purely from the retirement accounts where you done your budget and what you think you need per month, probably at $1200 amount okay. All right. Well, if you have 250,000 I think you could comfortably pull 4% a year. So as you have somebody managing that we talk about that in a moment reason I'd like somebody to manage that for you is an investment advisor who knows that this is an income portfolio. Were you trying to preserve the capital first and generate an income. Second, could build a portfolio with a heavy emphasis on fixed income where you've got a real solid base of securities that are going to generate the income that you need and a smaller portion that's in a growth component where does the market does well, it'll provide some enhanced returns.
Let's say, but in the event the markets down. We don't touch it. We let it recover. Even if it takes a year or two in the ideas that were all of that working together should be able to sustain you pulling out 4% a year, where over time, you wouldn't impact the principal at all.
In fact, hopefully there be a little bit of growth there that would throw off about 10,000 a year. Let's say you're wrong. It's not two 5350.
That's 14,000 year so were just about there. And I would let the Social Security grow because as soon as you take it if you lock it in at 62. You're going to be, you know, take about a 25 to 30% haircut off of what you would receive if you wait till full retirement age so if a if there are a combination of maybe some part-time work. Plus, beginning to draw in a small amount from the retirement savings together would allow you to enjoy the grandbabies still get out of the house and leverage the fact that you are in good health and you got a lot to contribute for a work standpoint, combined with the fact that now were letting Social Security continue to grow so that once you take it you, walking in this higher payout for the rest of your life that feels really good to me and then when you decide you don't want to work anymore or you can't, you've got plenty of income there between the retirement accounts and the Social Security to sustain you for whatever God has in store. In this next season. Then for the repairs you what you expecting to have to spend on those covered will bring me down to, okay. All right. Well, very good, was a how does that sound then where we would prioritize you getting at least part-time work as soon as you can if not full time just planning on how much you want and then either finding an investment advisor or if you have one, beginning to draw but you know hopefully maybe around 3% a year, supplemented by some of the part-time work that you get. Does that sound like a good plan. I have a lot of downtime probably spin down the IRA just because things are to be a little bit more's little simpler with just one account and there's very not a whole lot you condemn you could buy some index mutual funds without IRA but the 401(k) with the assets that you have to give you a lot more flexibility in terms of how you deploy those investments so I would probably spin the IRA down until it's gone now. We do need to think about whether you want to roll that 401(k) into the IRA because I assume it's with the prior employers at right and do you have an investment advisor or professional that you work with okay are you open to that. Okay, that would be where I would listen you spent a lifetime ago massing this money in the last thing you want do is put it on autopilot so I think finding your seasoned financial and investment professional to help walk with you to deploy these assets in a way that's consistent with your goals and objectives understand you and with the words, doing your life and also you want to be a careful steward of this and generate some income at the same time could be an invaluable next step and will likely have you roll that 401(k) into an IRA with whatever custodian they work with. So I go to our website moneywise live.org click find CK and find two or three certified kingdom advisors there in Memphis that you could interview find the one that's the best fit and then I would move forward with getting those invested where they understand that you tried to generate a very modest income. Make a priority to find that work that is available today. So many people are hiring and to see if you can't between a combination of part-time work and beginning to draw very small amount from these retirement accounts get to a place where you deduct your expenses covered and what that Social Security grow and then will just be excited for you to lean into this great season of life that God has yet to set some good you are very welcome Kelly. We appreciate you listening calling and all the best to you as you enjoy this Christmas season. As we celebrate today 800-525-7000 800-525-7000 always got some lines open today to check out our website moneywise live.org while you're there. Create a free account moneywise weekly is. Thanks for joining us today moneywise live moneywise live biblical wisdom for your financial decisions in just a moment will go back to the phones for your calls and questions. But first, it's Monday and I'm glad it is because the market has been while joining us for the segment, chief investment officer of Cross mark global investment Bob dollar good friend with his market commentary and Bob, what do we make of this market, goodness, and the fact it was closed and unchanged on Thursday mentored Friday and Monday we had a sort of make up for that lack of volatility. Oh my goodness, you know the fear on Friday was all about the latest variant of coded that's the excuse I think liquidity on these semi-holidays half days is always low in the market tends to overdo it in either direction, and we got the wish to the downside and today we've picked some of your backup and volatile on both days. In terms of what what's going on when there's more. We don't know about this omicron variant than we do know, and so uncertainty disturbs markets as we said many times, and that's what we have here, most wisdom is that vaccinations will keep it from being a big deal in the US but conclusion Jeff so be living with us for little while.
In both directions.
It strikes me know that it seems like this market is still very resilient even to uncertainty and bad news. Would you agree, no question about it and it comes back to what we talked about before America earnings put in perspective. Coming into this calendar year. The estimates for S&P 500 earnings for the full year.
All hundred and $75. It looks like when the year is said and done, it will be to 15 or higher $14 more than expected. This is the biggest positive surprise versus expectations ever recorded. And that is one reason why stocks have done so well this year and why they remain as you point out resilient, yes. Obviously, consumers are demonstrating that they're willing to pay these higher prices with inflation right. Remember they have a lot of cash from not spending it during the cold days that a lot of cash because the government mailed them some checks and on top of that, a lot of them are earning a bit more money because they've gotten some right as you pull it together.
Consumer buying power is pretty astronomical, and despite the price increases, the corporate America is charging so far. Americans are willing to pay those higher prices are beginning to not like it.
As we cease from some of the consumer in denim sentiment data like we got from the University of Michigan on Friday but that's not stop them from ordering, ordering things and going. Finding things in Bynum's thought you said in this week's those deliberations that you could characterize 2021 is easy money has been made because everything was going up as we head into next year were year anticipating choppy your markets for those the folks that have their investments in passive index funds. Is this a time to think about active management. When markets go straight up. You don't need somebody is going to pick stock a personal stock be because all stock small stocks go up in that kind of market. But if we have a choppy or sidewise higher volatility market, which is what I'm anticipating yeah all of a sudden being in the right stocks and avoiding the wrong stocks is absolutely key. Methods yeah have some more active management than you have in the past. All right check out those deliberations across mark global.com or you can read that weekly.
I rely on it every week. Bob fully let you go. It's December, which means it's the giving season, and as believers created in the image of the ultimate giver, encourage us in that area of our finances. I'd start by where we just talked about markets of done really really well and so individuals who said you know I think I should give a little money away, but I'm to stay in the market. They have no even more money to give away. So take some of the largess that we've all enjoyed from these market returns not just in 2021, but over the course left bunch of years and find some great causes are going to build the kingdom and give that money away very good Bob, thank you my friend for stopping by.
You can learn more about Bob Dylan cross more global across mark global.com bubble talk to you next week. Let's buddy back to the Phones Today Ct., Elaine, ID hi Haley, how can help you. I thank you for taking my call. Couple questions. I inherited a piece of property. About a year and 1/2 ago and it going to selling in a couple offers on it and I'm going to take a big hit on capital gains so the one offer is a cash offer to pay full out the other one would be to carry a contract get a substantial amount down and then carry a contract for I don't know maybe 10 years or in at least five years on it so I don't know the better way to go on that and then I'll throw out that I'm 59 my head since 61 do I pay off the mortgage on a home or do I invest this money can I make more invest in the mortgage on the home is 3%.
Yeah yeah great questions. Are you planning to do any getting on it because that would be one opportunity to minimize those capital gains is where prior to the sale you allocate a portion of this property to a donor advised fund then creates a tax deduction prior to the capital gains being generated and then you can give it away, so that might be one thing to look at if you're interested in exploring that Hailey I'd check with my friends of the National Christian foundation in CF giving.com in terms of taking the lump sum, I think that's always a great idea, as opposed to holding a mortgage or anything like that. Feel the paying off your own mortgage versus investing. I think the first question is not a financial one. And it is do you have either a conviction about being debt-free or would you experience a lot more peace of mind. Just knowing that your unencumbered or are you okay, having the dead and really just looking to maximize the financial return and there's not a right or wrong answer there, I'm just interested in your thoughts while I'm okay with having the debt to work till I'm 65 and I'm okay with having that debt, you know the market are the money could make me 7% right in Cana by 30 year mortgage on that end and it was my intent that this property would pay off that I'm not down 30 years left at work, so I'm hoping to either or yeah well here's what I would say having done well in the market.
You have an investment advisor that's doing a great job. You know you could certainly put it into the market.
I want you to have at least a 10 year time horizon because there's some headwinds coming our way today it's in the form of inflation in the ongoing pandemic and down the road. It's gonna be the debt that we've racked up and just some of the other challenges I think will have from a tax code standpoint and it would likely have a recession here in the next couple years so I think from that standpoint of your original intent was that this property is there to pay off the mortgage. As you said you don't have enough time to pay it off on its current trajectory and of love for you to enter retirement completely debt-free. I think that's probably the way to go. Our good friend Bob Dall, chief investment officer of 30 years, plus managing literally trillions of dollars.
He's characterizing the next several years is choppy and so you were knocking to see.
I don't think, at least, most experts agree, the straight line up that we have the last decade.
Certainly the last couple years and so I think from that standpoint if that was the purpose of it.
I'd say pay it off. You know it's free and clear and then you can focus on keeping your lifestyle at a minimum and taking what you've amassed and investing that wisely, but you said Rob not God. Don't have any problem having the stenting paid off at any time. I'd rather see if we can do better in the market and we got a plan to do that or advisor to help us with that, I wouldn't push back on that but all things being equal, I probably pay off the mortgage. Okay, that makes a lot of sense.
So again, thank you very much sorry Haley thank you for calling and we appreciated Palm Beach Gardens, Florida Pat is calling today and Pat what's on your mind.
Thank you so much for taking my call. All of the good advice you get.
I have a granddaughter one year old that I would like to give start. Whether it is on our property or I get paid to guide okay. I think the first question pad and by the way, congratulations on that little granddaughter that I understand is one what he needs an exciting to be ahead again to perhaps her first Christmas.
Or maybe just barely to, but let me ask, what is your intent for this money is it to be able to turn over money to her at a certain point that she can do whatever she wants with her. Would you like to make the specifically for education undergraduate and even located 12 for or what is your thinking. I want to start a vehicle for her probably education would be the goal you still reason I ask is my preferred savings vehicle for college is a 529 plan 529 college savings account. I would go to college saving for college.com saving for college.com. You'll go answer a series of questions and they'll tell you which states 529 plan is the best for you.
You're in Florida so there's no state income tax.
So you're gonna be looking at which state has the best returns in a minute tell you it's probably not Florida's and then you'd open the 529 you could systematically contribute to that. The benefit is you can get that invested in that money is going to grow tax free as long as the Jews for qualified educational expenses, like a Roth IRA and there's a real benefit to that and it's earmarked for college. If you did a custodial account. It becomes her money at the age of majority and it can, she can use it for anything she wants, even if she's not making good choices, or hasn't demonstrated maturity quite yet to handle the money so if you're willing to kinda hear market for college lease right now I'd open a 529 plan again to saving for college.com find out which state you can set it up online. Just set up an automatic contribution that going to be a real blessing that we can help you more along the way, don't hesitate to do it for us today want to think thanks to Mike Rios producing Mr. Dan Anderson engineering today Jim Henry on research. Thank you to our amazing call screeners as well. Thank you for being here is a partnership when he was meeting