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Steady Plodding

MoneyWise / Rob West and Steve Moore
The Truth Network Radio
December 17, 2021 5:06 pm

Steady Plodding

MoneyWise / Rob West and Steve Moore

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December 17, 2021 5:06 pm

One verse in the Bible gives us much of what we need to know about wise investing. It’s Proverbs 21:5, which reads, “Steady plodding brings prosperity; hasty speculation brings poverty.” On today's MoneyWise Live, Rob West will explain how even though steady plodding may sound a bit boring, there’s no better way to ensure that your long-range investing pays off. Then he’ll answer your calls and questions on various financial topics. 

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Planning Matters Radio
Peter Richon
Rob West and Steve Moore
Rob West and Steve Moore
Rob West and Steve Moore

In verse in the Bible gives us much of what we need to know about wise investing. Proverbs 21 five reads steady plodding prosperity. Hasty speculation brings poverty by Rob West may not be flashy or exciting. In fact, steady plodding sounds a bit boring, but there's no better way to ensure that your long-range investing pays off about that first today that it's all your calls at 800-525-7000 800-525-7000. This is moneywise live biblical wisdom for your financial decisions. The last couple of years we've seen many record highs. Breathtaking falls and rapid recoveries. At times people have poured everything they had into stocks and other times, pulled everything out to sit on the sidelines. That certainly isn't steady plodding to invest wisely. You must take a long-term view of the market. You only invest in stocks or index mutual funds with money that you don't need for at least five years and 10 is a whole lot better.

That way you can ignore the ups and downs, because, given enough time, the market always recovers from any downturn and begins to move forward, you can stick to your long-range plan without the market has another term for this study plodding. It's called dollar cost averaging, than what is that exactly well.

It's something that most investors are probably already doing. If you contribute a consistent amount each month. Your retirement account. Your dollar cost averaging, that could be in stocks, mutual funds, or whatever.

And here's the key. You do this no matter what the markets doing dollar cost averaging is a beautiful thing for several reasons.

First, there's no guesswork you're not trying to figure out what the market is likely to do next month or next year. You've already made your investing decisions based on your long-range plan. Second, it's easy to set up with your bank. Once you've begun having your contributions automatically sent to your retirement account. You can sit back and relax. You might be thinking that's too easy you just mindlessly buying each month but it's not mindless it's actually very smart buying. That's because by investing a consistent amount each month, you're automatically buying fewer shares when prices are high in stocks are expensive.

When stocks are down, then you're still contributing the same amount each month you're buying more shares. So no matter what happens on Wall Street, you're always building maximum equity at minimum cost through.

There's an element of delayed gratification with dollar cost averaging, but it's important to accept that when investing in general dollar cost averaging, doesn't give you big wins overnight. It gives you long-term gains. If you stick with it and don't pull your money out when things look bleak. Those eventual gains can be substantial.

Here's what I mean. As I said when the markets down your monthly contributions are buying more shares than when the markets up but let's say a bear market last six months, a year or even longer with dollar cost averaging. During that time you're laying the foundation for significant gains down the road when the market recovers all those extra shares you bought when prices were low, will be worth more and that greatly increases the value of your portfolio and there's another benefit to study plodding.

Most of us work pretty hard to save and invest.

It's just human nature to have some emotional attachment to those dollars, but emotions are dangerous when it comes to investing, they tend to crowd out logic and reason study plodding or dollar cost averaging takes the emotion out of investing. It also eliminates the possibility that you'll make a bad investment decision like mist timing the market. It forces you to think long term. Now what does this look like in practice well when you're dollar cost averaging your buying when other people are reacting to a market downturn and selling out of fear, we often hear that this is exactly what the big boys on Wall Street do, but you don't have to be a big boy to buy smart you can be a little guy who buys more when the markets down setting yourself up for those long-term gains when the market goes back up, which it always does. You profit once you grasp that you begin to see that a market downturn than a lengthy bear market is actually a terrific opportunity. Your friends might think you're crazy, but as the saying goes crazy like a fox but there is one judge said that I mentioned before, dollar cost averaging is a long-term proposition to do it safely. You must have an investment horizon of five or 10 years.

Then as you near retirement you wanted to increase your position in stocks and bonds, eventually hitting it down to about 20 to 30% during retirement. That way you'll have a hedge against inflation. Your calls or next. 800-525-7000 nine Rob Weston this is moneywise live entertainment moneywise live last host with delighted you along with us today as we mind the Scriptures that apply God's principles to the financial decision you're making each day. We got some room for your phone calls today perhaps you a question something you've been wrestling with financially speaking, and you'd like to get in on the conversation we'd love to hear from you. The numbers 800-525-7000 you can call right now. Eric standing by to receive you. 800-525-7000 were to begin today in Green Bay Wisconsin that were so glad you called today how can we help having to take my call and calling it a question about student loan. I have gotten my feelings down to $50,000 and that's with federal loans at a low interest rate. I have not been paying during a pandemic when it's been no interest accumulates and I just been saving money. I have wondered if I should make a large payment now when we start repayment in January about $40,000 in savings like to keep 20 found an ad for six months, positive expenses, but then I'm wondering if I should make a large payment like maybe 10,000 or if I should hold on that money. I could be looking at maybe getting a house at some point, I don't have to bend, looking for what what the best thing would be better for me to pay the loan off our dinner down faster or maybe say that money for a house in the future. Yeah well it's a great question man in both would be excellent goals and think it really comes down to first do you have the conviction to be completely debt free as soon as possible and if you did that, I would say use could certainly prioritize of the student loans. I like the fact that you can hang on to six months expenses. I think that's great. So you could, in effect, take 20,000 and put that against your 50,000 student loans or 10,000 some number that would get that going in the right direction.

If you though were comfortable hanging onto that a bit longer. I realize ideally it's gone.

But if you didn't have a conviction to just be out of debt as soon as possible. I would say if you have a goal to buy a home in the next let's say three years. Let's prioritize that in terms of the you're really focusing on saving for that down payment. You know it's as you said, the federal student loans are at a low interest rate. If you go ahead and start repayment in January.

If you're on a path to get that paid off and I'll say 10 years that I would say just make those scheduled monthly payments.

As you will be starting next month and then let's really focus on adding to what would be an initial 20,000 that could be used toward that down payment when you think you'd want to spend there in Wisconsin when you buy a home.

Well the price is right now seem really ridiculous so I'm going to come down but I think I'm looking at around 200,000 probably initially okay yeah so you want to save the minimum 40,000 which means you're halfway there. So if you've got no good margin each month you could keep adding to that in the good news is that when the time is right.

Both you're ready financially and you're ready to make that move in and take that the your that extra expense on a by buying the home that money would be there in your debt on the student loans would be coming down each month even though you wouldn't have put that big chunk toward it. So give me your thoughts on what I've laid out. I really like the sound of that would like to get a home and hedges that I could pay off the loan in 10 years and if I keep overpaying at the rate I had been a good evening. In nine years, so I think it does make sense. My question, I guess, would be what should I be where should I be keeping that money that I'm saving right now it's just in a money market account checking yeah I probably look to an online savings account you not to get a whole lot there, but at least still be something coming in the way of interest, notes, online savings right now. Pan, of course, more than their brick-and-mortar counterparts. So you might be looking at no .55% something like that on a high-yield savings. I would look at Marcus or capital one 360. You can also look to Ally Bank would be another one that I like a lot. Great customer service. No fees and you can see the highest interest rates around and they will move up over time as rates had higher so that's what I would do and then I'd link that to your checking account so it's never more than a couple of days away through an ACH transfer but it's separate so you're not inclined to spend it for monthly spending in at least you're getting a little bit interested each year even if it's only one half of 1% okay great thank you so much. You're welcome Matt listen all the best in the days that we appreciate your call today to Wellington, Florida hi Norma, thanks for: how can I help collecting Social Security and I Have had, I would say medium amount of 99. There are not yet a bit about that, possibly station that they would be coming and what part thinking that I would not get a seat to be a good idea to take that money out.

Seems I post it bank may need transplant based on my age I'm thinking wind farms. The book get that money out when I'm saving me and it back by taking a calming left and keep me saying so I do what I I will have enough time to get we covered that Manny did not mean because the patient take 10 years in 10 years I would have to get mining the money would be probably 50% of that amount right now. So why would you bite be happy to weigh in on that. But let me clarify something when you said you've got about 10 years until your 70 what happens at 70 are you talking about required minimum distribution at 72, or some other triggering factor that would require you to start taking money out.

I will forward my daily daily expand okay so what are you going to do when you retire next year to cover your expenses. While I do have property, but it rained okay and so you've got rental income coming in over and above any expenses related to the property and you're going to live off of that is that right okay then.

Have you been doing that long enough to know that there's enough that you can count on every month over and above your expenses that it would cover all of your bills.

I might have property for 17 years.

Then I went to the application.

Well here's the thing.

I mean when when you get to 70.

Things are going get better not worse.

In terms of income because you're going to be able to collect Social Security. Let's say you waited till full retirement age, that's gonna be additional income on top of the rental income and let's say at that point you were not able to keep up with the properties is just too much work will even then if you sell the properties you can have the proceeds of the sale that could then also be invested will talk about where would be invested in the second but at least you have that asset that you could convert to an income stream. So it seems like when you get to age 67, 68, you can have more income then you'll have next year in your situation will actually be improving. Would you agree with that. About it that you know that we should be here tomorrow. That's right, I totally agree with our trust is in the Lord and we don't know if were not promised our next breath. So our faith is completely in him. But while were here and while were in his service throughout the whole of our life we take the resources he's entrusted to us and were to be found faithful with those knowing that were not promised tomorrow, but he may tarry and he may have another couple of decades in store for you. So we need to make the best decisions we can. I think based on what I'm hearing the Norma that you're doing a lot of things right.

You've obviously saved for the future of not hearing that you got a lot of debt, you're clearly living modestly, you've been managing these rental properties really well, you built up this 401(k) with a significant sum of money. You'll be able to earn Social Security down the road. That's all good. The question is how do we manage these assets.

In the meantime you're already doing that with the real estate. What about the investments and what I would say to you is yes. There's probably some headwinds on the horizon.

The economy does work in cycles, and we're due for a recession.

Are we gonna see hyperinflation, probably not. At least that's not on the radar right now with the people that I rely on. Yes, inflation has ticked up and I think for that reason we want to stay invested.

Now, does that mean 100% your 401(k) should be at the risk of stocks at 61 years old nine years out for a year out from retirement. No, I don't think so, perhaps 30%.

At the maybe 40% at the most. You would want at the risk of the stock market and the rest you probably want in a fixed income portfolio and then as you get closer to 70.

Maybe that 40% becomes 30 or 25% in stocks. Here's the thing. The average recession doesn't last 10 years. It typically lasts a couple years and so even if we got into a real difficult spot. The stock portion of that portfolio. You wouldn't touch you let it just ride through that and it would recover over time and you would wait for that to happen, knowing that you're knocking to take anything out, but you exiting those accounts, namely that 401(k) by pulling your money out. If you pull it out of stocks and leave it in the account you not generating any tax but you're losing purchasing power because, given that inflation is higher than the typical 2% at 5% plus although I think it will normalize around three you're losing purchasing power every month and the way to offset that is through a disciplined and well diversified stock and bond portfolio that's appropriate for your age. I'm not saying take unnecessary risk. So I think given all of that, Norma and all the what you've accumulated.

I'd be looking to hire an investment advisor to work with you to manage this money you could find somebody who owes his certified advisor designation on our website moneywise my suitcase down the line. Thanks, returning in the moneywise live biblical wisdom for your financial decisions just on your previous collar off the year one think she raised is she'd like to be able to take her understanding and experience in investing in real estate and move her 401(k) into that and she was thinking she had to take a withdrawal and pay the tax on which he talked about using what's called a self-directed IRA to invest that money inside that tax-deferred retirement account. The IRA directly in real estate, which is something a lot of people don't realize they can do again. It's called a self-directed IRA. She has demonstrated a proficiency in managing real estate wants to add to her portfolio and I think that be a great idea. Hey, phone lines are open today 800-525-7000 before we head back to the phones will be determined remind you that as we head toward year end and yes it's just around the corner we're inviting our friends are moneywise community to invest in this ministry. Moneywise media is entirely listener supported and so we rely on your gifts to do what we do and here at year-end there now more meaningful than ever, as were trying to finish the year strong and plan and prepare for next year's ministry activities. So if you would consider a gift would be grateful to send your website moneywise, click the donate button and thank you in advance to Cleveland, Ohio hi Deb, how can I help you question about keeping money in the bank. Okay, back in an IRA.

I am 71 so I know I'm taking out anyway but there's 100,000 in the IRA and there is 134,000 in the bank with some of that, the money market part checking well at this age I don't Like insurance but we are debt-free. I own a $300,000 house. Okay long I will have a card and 88,000 miles on it. So sometime I need a new car but I'm not sure when it did keep in that low interest bank situation or should I get similar to the iron lecture.

What should I be doing yeah so the IRA money is the money inside the IRAs.

You said it's in money market is that right I have a financial advisor at Chase Bank and the dentist actually that all he does okay so it's invested in the hundred and 70 status hundred and 70 1300 37,000 is in the cash right bank and the bank about money market part 88 of us in MML. Whatever I want, I'm sure. Okay. Yeah. Very good. And then you are you. Is anyone still working. I want very little but I do work time and I am I'm so security blanket. I sometime am a nurse and I sometimes stop here and there.

Okay. All right. Well, if you have earned income and you wanted to put more away and keep it growing you could put it into a Roth IRA which doesn't have the required minimum distribution that you can run into starting after you turn 72 but I think the bottom line here is if you don't need the money because your expenses are covered apart from the hundred thousand in the hundred and 37,000 right you have other sources of income securities of security and your little bit of of work okay and that's enough to pay your bills.

Given that you all are debt free and so forth. Great yeah so I would be thinking about keeping somewhere between six months and a years worth of expenses in that savings account. Whatever you're most comfortable with and then whatever that number is and add to it what you believe you want to spend or will need to spend to replace that car and that will give you the amount that you want to keep in cash. I put that in a high-yield savings account link to your checking were getting at least 1/2 a percent a year on that money market is capital one 360 Ally Bank any of those and then the rest you could begin to put into a Roth IRA and build that up over time or just turn it over to that advisor to invest conservatively, so you have some additional funds growing you got plenty of reserves so I hope that helps you today. I know can be overwhelming to make all these decisions and moneywise live biblical wisdom for your financial decisions just will head back to the phones first getting on top of your finances is no beginning of the year is a time when a lot of people think about repurchasing their plans in their financial area to get on top of their finances to control the flow of money in and out to invest more regularly to pay down debt well at the foundation of all of that is living within your means, and if you don't have a way to track your spending plan to control the flow of money, I would encourage you to check out the moneywise app.

It's a great way for you and if you married your spouse to stay on top your finances to develop your plan to download automatically your transactions and put them in digital envelope so you can always see exactly where you stand in each category of your budget. We have a special offer going on right now to become a moneywise pro subscriber which allows you to easily automate and customize the app to fit your stewardship style. Check out that special offer.

When you visit our website that's to take advantage of this limited time offer. You can read all about the moneywise app.

Check it out today are listed back to the phones, Pensacola, Florida hi Bella, how can help you wondering not really prepared for retirement. I am a schoolteacher and I had my calculation dying, but I'm only going to have a pension of 30,000 year little concerned about Pat and started playing 500 away every minute and debt-free my car but I am writing and wondering what else can I do and try to catch up. Yeah well I think the key here is that you just her diligence in the years you have remaining remaining as you think about your working life Bella. How long would you anticipate you be working.

It's a rough prayer, but maybe another five years, but I think that an action detailing the drop program though I'm not sure I can understand all right and we do with putting away 500 a month. You know, if you start you know today at zero and you did that for five years lessee that grew an average of 80% of me.

That would give you $36,000 roughly that you would have you know if you delayed that perhaps by you another five years and you did that for 10 years, you know you have about $90,000. So let's say you have another hundred thousand by the time you're done working, because maybe you'll find ways to add a bit more than 500 a month. Along the way and then you have the 30,000 year you at some point you'll be able to add Social Security to that that hundred thousand we would typically look at you, you know, having about 4% a year that you would be able to take off the top without ever impacting the principal if it's invested properly so that would add another 30,000. So between the 30,000 pension. The 4000 a month. There's give me 4000 a year you're pulling off of the need. The savings through let's say a Roth IRA.

We'll talk about that in a minute. On top of Social Security. Then the question would be, would that be enough for you to fund your lifestyle and if so, then the goal is okay, what do I need to do to get to that hundred thousand dollars if it's not then you know how do I need to reorient myself to be able to save more or I'm going to have to work longer and that's ultimately what is going to come down to so I think the key is to start now.

A great tool to be able to put money away to accumulate for retirement would be a Roth IRA, you can put in 7000 a year because your for once you turn age 50. You can this year you could do 6000 if you're not yet 50, and if you do that every year you know that would give you a place to put that 500 a month get that money growing for you over the next 10 years plus and I think that would kinda be the base retirement account on top of the teachers pension that you would be relying on and then I think the key is just to keep your lifestyle in check so that perhaps over time, you could bump that 500 up to 600 or more.

To some extent yeah okay then I think the key would then to be, you know, are you going to take Social Security early and when it which the earliest age you can do that is age 62 challenges you to take about a 30% reduction. You know for from that point forward in your retired Social Security benefits.

If you take it early.

So then the question would be, well, can you make that up. Another way maybe you're working part-time in another field. It's not as taxing to you so you can delay that or you may decide know I'm to go ahead and take it because the the reduced Social Security plus my retirement savings plus my teachers pension is enough to cover my bills but I think that's the way you need to be thinking you need to develop a plan, know what you're aiming for so that you can cover your expenses in retirement and the just be really diligent about saving every month from this point forward, and I'm confident if you do that keep your lifestyle and check that you will be in a pretty good spot. Okay Bella thank you for calling publishing the rowdies in Morristown New Jersey rowdy, how can I help you half hi, then you not find delete you from you, but I could not okay fateful question so okay I have been you know folding your boat cast all your money like I'm not yet on you found not polite to pay my six month of sanity like 20,000, I'm not have climbed like 20 person might want Mark to get diamond pop-up. The amount i.e. got that by doing second job, then I have some fun back in India, so my thought is willing to send me so that's how I met the stew pot of you to back you that you have been constantly repeating in yada yada. You know this.

My question so I give my pen bus into the chart in the different ministries that I visit and whom I like my feel that dad got so I give Mike pretty? See you know you think they cannot skyrocket because I now believe that the best time to even ask if I if I won't bill you wanted the best topless treatment mutual fund body and I couldn't find it.

I think I really don't know how you do not believe the hidden framework on a hollow block.

Yes, I sure well, first of all right, let me just encourage you to love what I'm hearing, not just because you taking my advice, but your following biblical principles and you've done the hard work and now you're able to move beyond kind of the first few steps and get into some longer-term investments because you been working at this and that's great. I love that you have six months expenses and you have a mortgage that has at least 20% equity in your giving regularly and consistently proportionate to your income. That's awesome. And now you're thinking about investing for the longer term.

I think that's right. And I would agree yes. Inflation has jumped from a 2% level that we kinda just thought was there forever up to where it is today know six or 7% where you depending on the area you're looking at. Most people that I rely on forecasters and economists think it's going to settle down is around 3% still elevated from where we have been the best way to offset that is to be a long-term investor. So your thinking the right way. I would be opening a Roth IRA or taking advantage of a retirement plan at work with the goal of setting away 10 to 15% of your take-home pay every month and in terms of where to invest. I visit with our friends at sound mind investing.will give you the mutual funds to use the sound mind investing newsletter and stay on the line and I'll send you a copy of the sound mind investing in on the line.

This is moneywise live moneywise live around Western is here today. Let's dive right back to the fold.

Marvin is going from Indianapolis, Indiana Marvin, their Christmas and thank you for going.

How can I help I was calling to see your opinion on selling my personal investment account frequently married and my wife a car that you written got close. But anyway she owes about $7000 on it and I have about $4000 in my investment account with Vanguard and with thinking about selling it to pay off the car just want to see if that would be a good idea.

It has only been in there for about four months though. Okay, let's back up just for second so you just got married, that's great. Congratulations. Do you guys have any other debt other than the car about $300 in credit card debt title paying that all okay great and what you have in savings other than the 4000 and investments I have about about Brandon saving and then we'll all your bank that I think at least a master okay cool and are you both working and have you guys done a budget and you have a plan to control the flow of money each month of budget, not exactly. We did combine bank accounts of the outlets were spending each month and document from one account and that's all one thing out on but not exactly a budget okay I need you to do a budget because really need to develop a plan that may require that you track your expenses for 30 days were done here. If you hold the line will get you set up with a moneywise pro account at no cost to you will give you six months on that and if you are used to using smart phone apps and that would work for your field the way you want to handle money three different systems in there you can find the one that's the best fit for you and your wife but that would allow you to start downloading all your transactions from your institutions seeing where you're spending your money and you can develop your plan and begin tracking to make sure you're staying on plan. The goal is to free up margin because the first priority before. I want you to pay off the car is to save up at least three months worth of expenses. So if you guys are spending 3000 a month you I love you have 9000 for spending 4000 a month, 12,000 that's gonna be your goal in terms of paying off the car would be great to have that paid off but also love for you to his long as you can cover that monthly payment in your budget and still have some margin. I really want you to be. You know, setting something aside for the longer term. Do you have a retirement plan at work available to you. We have 4441.

Okay 401(k). I haven't signed up. But I've been planning on it but the reason that about selling my investments is that is because I am going to be taxed.

It makes sense to be taxed even though I'm trying to save money on the yeah will you only pay tax if you have a game which means you made money over and above what you invested in you don't pay hundred percent tax so you're going to get to keep the majority of that.

So you know we don't want to pay more taxes than we have to. But the fact that you have to pay taxes is symptomatic of income or profit. In the case of the investment so I'm not terribly concerned about that, but I do think I would prioritize for you guys investing in tax-deferred retirement accounts over just taxable investment account. So if you wanted to go and pull that out. Set aside whatever you need to set aside to cover any taxes for any gains you have and then you know add that to the car to drop that balance down even though that's not can reduce your payment. It's obviously can help you pay it off that much quicker so I'd be fine with that untimely problem with. I think that's a good move, but after you all do your budget and after you build up to three months expenses that I would be looking to start funding your 401(k)'s. The very minimum if there's any matching I'd love for you to take full advantage of that. For instance, if they say the first 3% will match it well. Make sure you got 3% going into that's free money. But ultimately, I'd love for you guys to be putting away 10 to 15% of your take-home pay and those 401(k)s every month. So I think the priority order here is yeah Glenn Pulley investment outs investments out set aside the taxes paid on the car do the budget focus on what you're spending.

See where you can cut back free up margin to build up that emergency fund and then once you have three months expenses. Let's start working on the salary deferral into the 401(k)'s okay okay all right listen. All the best to you guys in the day ahead days ahead us down the line is our gift to you.

I'd love to send you a copy of Howard Dayton's book, you're not your money counts, but money marriage God's way. I think that'll be a great resource for you guys to read over the next couple weeks, maybe has you have a little extra time why you're celebrating Christmas and will get you that pro subscription to the moneywise abscess down the line and will be right with you. Thanks for your call today. Sean is in Rockford, Illinois hi Sean, how can I help you thanks for calling her thinker taking a call my mind why so security disability. Our children are five and six years old and they're getting a monthly income just as an offset. I'm looking to see what that route that I should go with for either investing, saving for them during this time, yes.

So obviously this money that is now available because of the disabilities isn't distant is not needed for living expenses.

Is that right John much we try to I try to save America a little bit from it to help.

I'm trying each. I try to have them have the $400 a month. Michael yeah and would you like to earmark this for something specific like college or do you want to keep it available. More generally, I would like to keep it later for them and, ironically, want to have them when they turn 30. I would like to have something so there they could get up to hundred thousand dollars or even more mindset that I'm looking at. Okay, well, you know, if you don't want your market for college now. Then I think your options are either a custodial account. The challenge with that is it becomes their asset at the age of majority. So you lose control over it.

So they're not making great financial decisions that 18 or they're not mature enough to handle it. You think they go buy a sports car or whatever you know you don't have the control over the funds so it sounds like if you're saying perhaps even as late as age 30 year then you probably want to just keep it in your name but keep it in an account that's earmarked for them, so I'd probably Sean set up just to assist an individual account or a joint account you and your wife and your name and then have a different account for each child so you know which one it's for and then just begin to automatically add money to this every month, I'd probably use one of the Robo advisors to start with. Just because they're very low cost like 1/5 of 1% a year. There's no charge for it to be automatically reinvested. Every time you make a contribution and the money would be invested in ETF's that again are low cost you'd capture the broad moves of the stock and bond market through the indexes and you could just automatically fund it every month or dollar cost averaging, and it would just do its thing in the background so I would check out Schwab intelligent portfolios, betterment, and the Vanguard advisor.

Those of the three that I like the best. I think that'll give you what you're looking for and you just be opening a joint taxable account to begin to set that up and we appreciate your call today Sean all the best to you, I will finish today in West Palm Beach, Florida hi Pat, how can I help you I graduated from college and a good hard worker really good job in like consulting and natty that we initially had very low cost of living that now it's increasingly talk to realtor when the apartments are now one bedroom apartment there. Now $1200 bike better by a no on because interest rates are low about that night for your own property and she can get a four bedroom condo for pain hot linking the HOA the bacon back together really believe properties although it while it property and he went there. I think here we go.

So I gotta pick one of the other, though, that's fine. Let me ask you, so Pat would this be the condo would this be something you're buying and then allowing her to kind of pay some rent to you or you looking for her to buy what you thinking we Initially help you with the down payment. I see takeover payment. Well, I think the key there. Obviously this makes sense. I like the fact that your right rental prices are up dramatically as a result of what's going on in the housing market.

So, given that if you all have the financial wherewithal to do this and this is a going to put a strain on you financially for you all to come in and what I'm hearing is you'd make a gift to her, which I love. I'd rather you not loan the money to her. You make a gift to her of the down payment and then she's responsible for covering the mortgage every month.

The first question is, is it in your name or hers and are you ready willing and able to step in and cover the mortgage if she's unable to through due to unfortunate some unforeseen event down the road. I want to make sure that's already defined in advance or doesn't create a relational strain but in terms of whether or not it makes sense financially.

As long as you all have enough financial stability to do it then. I love it. I would agree with you Pat rather than throw the money away on rent you will take advantage of investing in some real estate and let her take her income and pay the mortgage every month along with maybe a couple of things. So I think I'm on your side. I appreciate your caller at a time yesterday folks. Thanks for stopping by today for moneywise live.

It's a partnership between radio and moneywise media.

Thank you, Eric, and Amy Jim Henry as well. Think you have a great weekend that God bless

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