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Putting Kids on the Deed

MoneyWise / Rob West and Steve Moore
The Truth Network Radio
December 15, 2021 5:09 pm

Putting Kids on the Deed

MoneyWise / Rob West and Steve Moore

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December 15, 2021 5:09 pm

We all want to leave an inheritance to our kids, but tax laws sometimes make that complicated, especially if a home is involved. On today's MoneyWise Live, host Rob West will explain if it’s ever wise to put your child’s name on the deed to your home. Then he’ll answer your financial questions from a biblical perspective.

See omnystudio.com/listener for privacy information.

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22 Moses leaves an inheritance to his children's children by Rob West.

We all want to leave. Stuart but tax laws sometimes make that complicated, especially if the home is a book about that first today that it's all your calls at 800-525-7000 gold at number 2470 800-525-7000. This is moneywise live the wisdom for your financial decision. It's a question should I put my child's name on the deed to my whole there are many reasons folks asked this question most often it's to keep the property from going through probate when the homeowner dies the homeowner or the parent wants to ensure the property goes to one or more children having their name on the title provides peace of mind that they'll take full ownership of the property, but sometimes the solution has unintended consequences putting the child's name on the deed may solve the probate problem, but it creates a new problem with taxes. It's actually better for the parent to own the property outright upon death. When that happens, and this is key, the heir or heirs inherit the property in its current market value.

So let's say you buy a home in 1990, picking a date at random for say $100,000. If your child inherits the house and sells it immediately. For $500,000, the profit since the original purchase would be 400,000 and here's where it gets really interesting. Under the current tax law, the child inherits the home and its value at the time of your death. So the home is worth $500,000. The child sells it for that much, and that's also how the IRS abuse the value of the property. That means according to the IRS. Your child has made no profit on the sale of the home because of what's called its stepped up value what it was worth.

When you pass the property on your child but now your thinking find that the heir pays no taxes on the inheritance. But what about the estate.

Well, there'd be no tax owed there either. If the value of the estate at the time of death was less than be ready for this. 11.7 million toddlers, which is the current estate tax exemption, so no estate taxes. Now let's look at the other scenario you put your child's name on the deed and the child becomes an equal partner in owning the home. Upon your death, your child would inherit only half the homes value and would be entitled to only the stepped up basis for that half if your child then sells the home they wouldn't pay tax on the share inherited from you at the time of death.

That's good, the bad news is, the child would probably have to pay tax on the other half of the homes value that tax would be based on the value of the share.

The child received when you put their name on the deed and the child obtained ownership based on the value of the home. When sold, then let's illustrate this with the same numbers we used before you buy a house for hundred thousand dollars and you put your child's name of the deed as co-owner, the child inherits your half of the property at the stepped up basis of $500,000 when the child sells the home.

Your half is shielded from taxes, but the profit then becomes the difference between the purchase price and the sales price or $400,000 with the child share being 200,000. The child within probably have to pay taxes on the 200,000 in profit. But if the child had inherited full ownership of the house. There'd be no tax at all.

I know that's all very complicated, but the bottom line is, in most cases it's best to not put your child's name on the deed before you die if you're still concerned about probate a better alternative is to put the home in a living trust, a revocable living trust allows you to control the home while you're alive in your child will inherit the home through the trust upon your death while you're alive, you can still do whatever you want with the home even sell it, but you will know that with your passing the home will go to your child a living trust will cost you about $1500 but it will allow the home to be passed on your child without going through probate. I recommend of course you talk with an estate planner or state attorney rather than trying to do this with one of those inexpensive online services. You get what you pay for. You know another related question we often get is how much can I give my child is a gift without paying taxes. The quick answer is a lot you can give anyone up to 15,000 a year without having to clarify your taxes. You can also give anyone a total of 11.7 million over your lifetime, but if you go about 15,000 this year to any single person. You have to according to the IRS. Well, I hope that answers those questions at least until they change the tax laws are your goals and next here's the number 800-525-7000. This is moneywise live biblical wisdom for your financial decisions gratefully attended.

Moneywise, live today in my last post calls waiting and we got some lines open so if you'd like to get in on the conversation today with whatever your thinking about financially, we'd like to invite you to do that. There's the number it's 800-525-7000 lines are open 800-525-7000 before we head to the phones we started today by talking about whether or not you should put your kids on the deed to your home and let me just say is your thinking about wealth transfer of this is the last stewardship decision you will make it's an important one and it will change over time.

I think it's important to consider your wealth transfer plan in light of God's word.

What is the right way to go about it. How do we think about leaving money to our kids or ministry or our church and how do we decide between the two. How much goes to each and what is that plan look like well there's a great resource. We talk about often on this program that I'd like for you to think about picking up if this is something you're considering it's a book by our friend Ron blue called splitting errors and it really doesn't deal with the how to the mechanics of estate planning, but really the why the questions that you need to ask in advance to make sure that you've given thoughtful consideration to how your constructing your estate plan and let me just say other than the financial capital that you will pass.

What's even more important is the spiritual and character capital that you should pass and that needs to come first and keep in mind money in the midst of a family member who is not showing responsibility with handling God's money wisely, or perhaps making difficult lifestyle choices can really make problems even worse. And so you want to think through that. How are we going to transfer wealth and what implications might that have and have we prioritized pressing spiritual capital and character capital first and perhaps splitting errors would be a great resource. During the next couple weeks for you to pick up and read. I would highly recommend Ari two lines open 800-525-7000 will head to Minnesota first.

Today Frank IQ for holding and being her first color. How can help user. Well, thank you for the document you did on transferring technical property like a what our attorney is suggested is to do a Todd transfer on death and wonder if that's better than what you are suggesting that yeah like a TOD or transfer on death. It's a very effective tool to make sure that your wishes are carried out with the particular accounts like a brokerage account or an asset like your home and it's a simple way to do it. That's less costly than a living trust. The reason you may want to consider living trust as if you wanted some the other things that come along with that that your estate planning attorney can talk you through, whether that's at anonymity with regard to how your estate is handled avoiding probate. If you want to have the the assets that are inside the trust given out beyond your life based on certain triggering events. If you have a lifelong dependent reminders that you want to reach certain milestones if you want somebody real to come in and handle your estate prior to your death if you're incapacitated.

Those would be additional reasons, you could consider a living trust, but in terms of just the efficiency and expediency of transferring an asset. In this case your home transfer on death is a very effective tool.

So I think that's great counsel, and as always I really encourage you what you've done to seek legal counsel as you establish your plans. Separate the documents in place and then be sure Frank to update those as things change, or every couple years.

We appreciate your call today 800-525-7000.

Angelina is in New Orleans, Louisiana, go right ahead: great point yeah. Well, the most likely reasons. Angelina would be either a you've had a late payment be you've authorized someone to pull your credit for the purposes of evaluating whether or not they will extend you credit like taking out a car loan applying for a new credit card something like that, you know, those would be the. The primary reasons, there is obviously a number of other factors there. So, can you think of anything that has changed, or have any of those things occurred will by one and I had a good cola, but I yeah I got that would decrease not much. It could mean obviously because you had a settlement. I assume you had some late payments that led up to that is a right yeah yeah so you know there's just so many factors are going to that algorithm, and in that very well could have when that even though it's still hopefully it's been settled in full shows a zero balance release that's forthcoming that in and of itself could have resulted in this decrease guilt you have to go back to Angelina, the factors that make up your credit score. The far you know the most important factor is your repayment history.

That's 35% of the score, then second to that is the amounts owed and the key there is what's called credit utilization. See what the total you owe less than 30% of the available credit that's been extended to you after that.

It's your credit history. How long have these accounts been open. Overall next to be the credit mix.

The fact that you have different types of account revolving accounts and installment accounts. Those types of things and then thirdly nurse is me for the lastly would be new credit, which makes up 10%. So those are the things they can keep in the back your mind some triggering events that could closer they could to reduce the score that one would be closing an account because that changes not only your credit history but also potentially your credit mix if you apply for credit again approving or allowing the lender to a pull your credit is going to temporarily reduce your score and then obviously a late payment would do that as well so I'm not terribly concerned about the 30 point drop it'll come back. The key is focusing on moving forward being an on-time pay or keeping those balances low and I would also encourage you to check your credit report for free couple of times a year. You can do that an annual credit report.com.

If you find any errors on that. Make sure you dispute it, and by the way with this settlement once it settled in full.

I'd really encourage you to make sure that that is noted as settled in full in that it shows a zero balance because a lot of times that does not get updated especially with those accounts that have been in collection in the website to pull your credit report annual credit report.com I get one of each of the three Bureau reports every four months and that way your less than four months at any given time away from your next report that will ensure that you stay on top of this. If there is any negative information is incorrect dispute. It is taken from 800 525 7000s an article will be. Thanks for joining us today and moneywise, not biblical wisdom for your financial decisions.

As we head toward here and let me encourage you to prayerfully consider supporting ministry here moneywise media we do what we do each day because of the sinner support.

We rely on you to build a bring you this broadcaster and upper moneywise coaches are website or certified kingdom advisors all that we do as a result of your support and if you would prayerfully consider giving here as we head toward December 31.

We'd certainly be grateful it's quick and easy to do on our website you decide to moneywise live.org and click the donate button moneywise live.org and click the donate button you can give online securely. You can also find our mailing address if you'd like to send in a check or a phone number where you can contact somebody directly again just said to our website moneywise live.org and you can click the donate button. Thanks in advance. Hi, let's head back to the phones all the lines are fully a lot of great question stacked up next is York, PA hi Eileen, how can I help you, thank you for taking my call to ministry has barely been special to me as my husband appreciate hearing that situation here where we first bought this home. It's a parcel of a fourth-generation farm site means a lot to me because I worked the land and on we put a lot into it sunk 100 K into our house. We were wondering where in her 60s. We were wondering and we still have a mortgage that's our heavenly dad, it would be wise to move into a trailer because I know there's value in a trailer yeah why would you be selling and are you looking to try to reduce your overhead yes okay talk to me about, how you all are doing right now and is there a shortfall every month that you're trying to make up a gap on well, we were able to make our mortgage payment. It's 1/3 of our income and were not able to say that's my concern. We do have money in savings and we had money. My husband has been tested 20% in his work at work because it set match match program and so religiously we heard that this is a good time to sell. We we were just wondering what to do. I have Internet so I can't work I see okay. Have you done some planning Eileen where somebody has looked at the assets that you have the retirement account. Your husband has the real estate that you have the savings you've accumulated and really looked at that in light of how that might fund your retirement income that's needed. What we still owe hundred and 57,000 on house and down on meat that we talked about a condo, but you have to pay fees for maintenance and that would that would be that would be foolish to so we given what we sunk into the house for Condoleezza. Logically, if we sell we do have a financial counselor and we we need to meet with him again and would you suggest meeting with him and going after everything I really would because me and although it seems like it makes sense if you if you're unable to say we want to try to reduce your overall spending. So we got some margin there that you can then use to commit toward long-term savings.

But before we even do that. I'd love for somebody to look over the whole picture just to say you know what is your husband's projected work years look like, how long is he planning to continue to work and based on your current track how much might you have available at that point and how does that match up with your needs in retirement, what would your retirement budget look like, and in addition to Social Security. Will you have enough in the way of assets to be able to fund that need and if not, we need to accelerated than you know. Clearly a changes in order but given that you started by saying listen. This property is really meaningful to me. This is someplace that I love. I just want you to make sure that this is the right decision to sell it and it may be, but I'd like for you to do that in the context of a plan that gives you some peace of mind to know that you're headed somewhere and you know what the ultimate goal is and you know what it's gonna take to get there so that you've got to know a goal in mind as you solve for reducing your overall spending and part of that. Clearly one of the biggest levers you can pull in doing that is reducing what is you said is the largest expense you have 1/3 of your budget being your home but then I think it's a matter okay what we do about it. Next, and you would be a pretty radical change for you to go from a farm with land to a mobile home or a condo and so you just need to think through the implications of that are we prepared for that. Is it a small single-family home that would be better for us where we can in a reduce our overall spending so I give some thoughtful prayer that perhaps engaged in real estate professionals, but I think that the starting point is to really spend some time with that financial advisor or counselor to really make sure you understand where you today where you headed. Are you on track and what is it gonna take to get there and then the decisions to sell the house and make changes in your financial life or just the the way that were going to solve uniform where you're ultimately had it. Does that make sense yeah and the other thing I wanted to mention it for putting 700 into whole life amount 700 a month okay yeah it's a you've built up some cash value there obviously. And so we need to look at that just to say is that the the best place for that money to continue to grow for the future would be better to take that cash value and reallocated somewhere else so it could continue to grow outside of an insurance policy and how much life insurance do you need right now and into the future and that's obviously good to become more and more expensive over time, and then with your medical condition. We need understand the implications of that as well.

Although, if you're not bringing any income in know there's not a risk there that your husband in a wood bear if if the Lord were to call you home so I think all of this really just warrants a plan and so I think that would be my next move. If you have questions after you do that, don't hesitate to give us a call back and Eileen God bless you.

We appreciate your call the Lord to give you some wisdom as you make these decisions. Joe's in Kansas. Joe, your next up on the program.

How can help user and I don't have any children.how the asset I was wondering is a couple places that I would like like money in the amendment to go to the Lord and I was wondering what would be the best way I like for where the auctioneering and they did celebrate bearing and you spend money allocated for what was the way in both well if it's a it's a fairly simple situation.

You know a basic will will accomplish that through the probate process.

The other option is what's called a transfer on death which just transfers the properties or assets to put a named beneficiary or case charity or ministry on your death, or a living trust which therefore real estate can have some benefit. So I think your next move Joe's to find a godly estate planning attorney there in your area talk through all of this in the right instruments to go along with it and I think you'll be glad you appreciate your cost down the line for joining us today and moneywise live biblical wisdom for your financial decisions.

We want to help you apply God's truth. His principles to whatever you're dealing with in your financial life today.

Give us a call.

We got slides open 800-525-7000 before we head back to the phones will just mention if you'd like to find a financial professional either an estate planning attorney, financial planner, investment advisor, and insurance professional or even a tax professional. Someone who shares your values. That's why we recommend the certified kingdom advisor designation. You can find a C KA in your area quickly and easily on our website moneywise live.org just click find a CK and you can search locally.

We think you'll be glad that you have somebody was giving a competent professional advice that aligns with your values and priorities as a Christian I ran back to the phone, Chicago, Illinois hi Cheryl, how can we help you tell my father early this year and how how can a mortgage and I want to know about probate into something that I can do in difficult what will happen without paperwork.

I have to hire an attorney in a second think and how my blank have to actually go to the path that and then the last question is if I wanted to win out black.

"The yeah great question. You know you don't necessarily have to hire an attorney to take your father's estate through probate but depending upon the size of the estate. You may be better served with an attorney because they know what to look for, you know, we need to make sure you have life insurance proceeds and real estate and bank accounts and IRAs and if you have stocks and real estate deal.

We gotta make sure you have a good handle on everything that's there to find out who inherits assets for which no beneficiary has been formally named such as a house, you would need to consult state law, which again is where an attorney will be helpful every state. Cheryl has what are called intestate succession laws that parcel out property to the deceased person's closest relatives, but I think you know the key is that you you recognize you want to get all this taken care of of the probate court is ultimately going to determine who gets what, you know your feet that has passed intestate, which means without a will, but an attorney could be your advocate there to help you make sure everything is is nailed down. There is to choose anywhere between a couple weeks and six months to file for probate. After that, it can cause some problems so you want to get on this pretty quickly writing you're very welcome.

Thank you for your call today.

God bless you Greg's in Little Falls, Minnesota. Sounds like a beautiful place, great. How can we help you Gregory. There yeah.

Sorry. You're welcome to read had that right.

Thank you for your program. My wife and I will do it regularly and it really helped us. I can look over the silicates that we my wife and I we were fortunate enough that when her parents passed away.

They gave us a cabin on one of the lakes up in northern Minnesota and we live on a farm in Little Falls, with about 10 acres of my wife just loved it, and the question I have with the supposedly transitory inflation was going on that. Keep if the transitory inflation keep going and say that it takes more and more to live in. My wife and I have a seven year plan to get the mortgage on the farm.

Up the cabinets free and clear. The thought came to me the other night that if everything went south would be smarter to have the mortgage on the cabin and get the resident.

This primary farm as our place and it gives them a question, yeah. So you've got the farm in the cabin, but there their separate they located in the same place their separate other cabinet in our halfway on a lake up in northern Minnesota and we have no we been able to. We got that paid off. Actually kind of a little bit of a form of income for food dear B&B and the RBL with it, but we were not wanting to get rid of either one of the places but the thing is that if everything the economy. And I know it was estate but that's my can happen, but if it did go bad would it be smarter to have the mortgage on the cabin instead of having the mortgage on the place that we want to make a primary lot and not necessarily mean other than the fact that yes or you want to make sure that where you ultimately want to live, you have most peace of mind. Most safety if you will, by having that unencumbered and so you get to your plane. You know if something were to happen economically and you'll experience a loss in income and you're unable to make your mortgage payment by having a mortgage on the farm where you ultimately want to live that does put that the property at risk versus the cabin which, as you said you'd like to hang onto a but if you were to lose one you'd want to lose that. Yeah that would be no out of an abundance of caution, I think a wise move.

I think the question is just what is the cost of that and is that worth it, both in terms of the refinance cost itself. So you're gonna have to get out, get a new mortgage on that property that's currently free and clear, and there's you to be an expense to that and then secondly would be getting a mortgage on the property that you don't you know is not your primary residence is can add a little bit to the, the rate the jury be paying. But if that gives you greater peace of mind and know the place we really want to hang onto it all is the place that is the farm and we like to just know that that has no mortgage on it. We own it, free and clear, then absolutely I would concur with that and you may decide it's worth the extra expense to change this around move the mortgage over to the cabin and you will pay the premium, even if it's light on the rate associated with the property that's not your primary residence is all that make sense yet to really good. We heard today to that talking about three prime rate of interest rate hikes next year in conflict where we going with this.

With all the billions of dollars that were printing and maids, want to have a type of peace of mind which the Lord has been good to us and we do that a good piece of mind yeah yeah well and keep in mind the uniform loans have certain benefits that you don't get with the hope loan, but again, that may not be as important as just knowing this is free and clear and you know I don't have to even think about that.

So I would make sure you get three offers Greg before you ultimately decide on a mortgage for that cabin so you can compare those makes you keeping your costs low. No more than 2 to 3% in expenses and obviously get a very attractive rate, but sounds like you're headed in the right direction. I appreciate your call today leases that is in Lakeland Florida but that were heading into a break in here in just a moment. So Lizette and Cheryl and Sheila to me and ask you to hold tight so we can get to your question right after the break. In the meantime but let me just remind you you as you think about handling God's money and you think about your role as a steward. Here's what I want you to consider. Couple of things number one God is the owner you're the steward which gives us a really important job as we manage money for the King of Kings and as we apply God's principles. We want to do five simple things want to live within our means to avoid the use of we want to have some liquidity or some margin in our financial lives not spend all that we bring in to set long-term goals want to give generously if we do that for a long time.

We've at least put ourselves in a position to experience God's best. Well if working to live within our means. We gotta have a spending plan in one of the best ways to do that is to have a system to track the flow of money. So let me encourage you to check out the moneywise could be a great way for you as you plan for a new year to get your budget set up and have a system to control the flow of money in and out. It's the best digital envelope system I've ever use that it's available in your app store to search for my biblical deposit will be right extra tuning in the moneywise live with us today to have my phone Lakeland Florida is where it is that is present. How can wow I get very quick. You said something to me that? It money. I have got money, got a contractual money, and so on came.

I tried to error and doing right by God's money that unlock so I have significant student loan debt and I have credit card debt and I'm in a situation where I'm living at home and my parents right now so I can save some money. I'm single.

I don't have children. I'm not married. I don't know where to start just lost out.

I want to be a good student of God's money and I want to pay my debt. Yeah let's hope you do that, Lizette, and let's go back to what you said first yes you're exactly right. Psalm 24 when the earth is the Lord and the fullness thereof. You know it was at the cattle on a thousand hills. It's all his everything belongs to him and so what passes through our hands is a direct result of what he has entrusted to us aware caretaker manager of God's resources and working to make mistakes were also to find ourselves in times of want to. Where were struggling a little bit now.

We may also be in times of plenty. The key is, as the apostle Paul said, is to find contentment wherever he has us and to be found faithful with where we are right now, which means how we order our financial lives to live simply and live within his provision and do it in such a way where we can give right up front systematically and have some margin. Something left over after the bills are paid so we can accomplish our goals and objectives which again go back goes back to God where you taking me what what should my goals and objectives be one lifestyle is you can have you called me to. So that's what we want to try to find and we do that as we go to his word and praying we ask him to give us wisdom and then together we can move forward in that direction and all the mistakes we've all made we can leave right at the foot of the cross.

It was that I don't want you to be discouraged by that.

I want you to be encouraged that perhaps from this day forward, you can purpose yourself to say want to get out of debt want to payoff the student loans and the credit card so that I'm free to follow God more fully and I can follow his lead in whatever that looks like now in terms of how you get these paid off where you go from here to tell me what you've got.

What are your student loan balances and where your credit cards. Okay, let's start at IL dependent out that that phone no way to get how much total I have 100 grand. Okay letting the first step is to total all those up and look for you to know exactly what they are, how much you own each one of them, and to whom are they all federal loans will partially, private though it may apply it in Utah and Corin are you current on all of them know you're behind on some of that. I know all about I I've gotten discernment and there is okay and then how much you and the credit cards that I don't have that my student loan did my my heart and soul.

Credit card tell you if I have ever have five dollars and I don't have credit card. I don't I don't have anything out so it's just a student loans is really all you have in the way of beating me up, had yet so here's the next step. I think we gotta do a little homework number one is you gotta know exactly what your expenses are.

Maybe you do, but if not, I want you to track those expenses for the next 30 days. Just so you know exactly where your money is going and then I want you to eliminate anything you can eliminate what we're trying to solve for his margin. The amount over and above your expenses that you can put toward this debt and then you need to take advantage of this time where you're living at home to begin to make some meaningful progress on these debts so that when you're ready to move out. This is not hanging over you and you've taken full advantage of the opportunity work while your expenses are low. The next thing you need to do beyond the budget is get an accurate listing of every one of the debts whom to whom you owe it to and what the current status of it is and then I would begin to go back to each of those once you know how much you have available in the way of margin every month and begin to get yourself back on a payment plan that works. There's income-based repayment plans with the federal loans in the private lenders will work with you as well. If you can show them a budget and what you have available.

Then they'll work with you to get you going, and I think once you're actually making on-time payments based on this new payback schedule. You'll determine with them. You'll feel better that at least you're moving in the right direction. You know who you are money to you know how much you owe and you're on a plan to get it payback and then the key is just keep your lifestyle at a minimum, take advantage of this opportunity while your expenses are low. Let's try to make some headway in this direction. If you have questions along the way was that you give us a call back and listen. God bless you. We appreciate your call today. Cheryl's in Florida hi Cheryl, how can I help you, great.

Thanks for sharing everything I really appreciate your knowledge of every think you are right Karen Eric Mike Trott February I bought a track on equal payment and a petition making what it paid and I don't know whether I should send the money to date are capital or how I how I go about doing that in the deathly yeah I would actually call your lender Cheryl and see how they would like to handle this. You can't transfer the title until the lien is been satisfied and removed from the truck so you gonna have to figure out how they want that to be paid.

If you can walk into their office with them, he could provide the funds to pay off the loan. Otherwise, what typically happens it would be done through wire transfer, but the key is I would contact them to listen.

I'm trying to satisfy this lien and then I want to transfer the title. How do we want to go about this and then they'll tell you what the next steps are. So I would give them a call and they'll walk you through where you go from here. We appreciate your call today hi Linda, here in Illinois. Your next up on moneywise live.

How can I help you. Hi, right. Thanks so much for taking my call at all. About 85,000 on my mortgage. I have my interest rate right now it's 4.75 and I was thinking about refinancing I just built my credit been working on bringing my credit rate out and I've been doing pretty good with that. My question is, will my credit score drop.

If I go out and search for lenders and is it okay to search for more than one printer. Yeah, I hear what you're saying but keep in mind the reason you been building your credit score up as for precisely this reason because you have the opportunity to improve your rate on your mortgage. If you're at 4 3/4 you should build a get that down to 3 1/4 maybe or something like that, maybe 3 1/2 being a what your credit scores will that's precisely why you've done this so even if through this shopping around of a new lender causes your score to decrease temporarily.

This can happen after this score is pulled and it'll recover. Now keep in mind any inquiries that you authorize from potential lenders within a two-week period are seen as one so you could go on shop this with three or four different lenders in a two week.

You know they pull your's report, you pull your score.

That's all gonna be seen as one so I wouldn't worry about the drug because again, this is why you've been doing this and you I think you'll benefit from it. Without a doubt, and any temporary drop from the fact that you're out seeking new credit will recover over time. Okay okay thank you very much. I thank you bank rate.com is a great resource. As you find the lenders idle check with at least three Linda to online and then perhaps one your local bank or credit union and listen. God bless you, thank you for calling Sheila's in Florida. Your final color today Sheila how can help you might call it a question based on savings bond. I have been purchasing Downey for quite a while now and I'm wondering should I just hold onto him or should I catch you meant me now is a great time to have.

I bondsman these are 30 year bonds there I stands for inflation. As you probably know the rate is determined by two parts. The base rate which is fixed for the life of the bond that's zero right now.

And then there's the rate based on inflation. That's what's driving them up and I bonds right are paying about 7.1% and you can have up to 10,000 a year in them. Treasury Department applies this formula to determine what it is.

So I would look at you know whether yours are still earning interest. You can do that a treasury direct.gov. If it any point it stops earning interest. You want to cash it in. But if it is still earning interest, you're likely getting a great rate. Sheila and your you're not gonna find the rate that you're likely getting anywhere else, especially with complete safety. Because this is backed by the full faith and credit of the United States government and year beyond the five year mark where there's a small penalty for cashing the men so likely what it is is you're gonna want to hang onto these because some of these are probably paying you far more than you could get anywhere else but treasury direct.gov is for you to the place for you to go.

If you haven't already for you to see exactly what's being paid out. What's the status of these bonds you can queue in the CUSIP numbers and find out all the information I think these are going to be a bonds that you want to hang onto, and perhaps even consider buying more of. So I hope that helps you listen. God bless you and thank you for your call Sheila. Well that's gonna do it for us today. Folks, we have covered a lot of ground.

Thank you for your kind remarks and for your phone calls today. Let me tell you moneywise live as a partnership between Moody radio and moneywise media again if you prayerfully consider supporting this ministry between now and December 31 we be grateful to said to our website moneywise live.org just click to say thank you to my team today Eric Tidwell on phones Deb Solomon my producer today. Amy Rios engineering and the amazing Jim Henry doing research today. Thank you for being here as well. It's always my privilege to join you each afternoon as we mind the Scriptures apply God's principles to what you're dealing with financial life. Lord willing, I'll be here tomorrow so I hope will come back and time they got blessed. See


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