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Your Top 10 Financial Moves for 2022

MoneyWise / Rob West and Steve Moore
The Truth Network Radio
December 22, 2021 2:14 pm

Your Top 10 Financial Moves for 2022

MoneyWise / Rob West and Steve Moore

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December 22, 2021 2:14 pm

If you’re still deciding on what your financial New Year’s resolutions will be for 2022, wouldn’t a list of helpful suggestions come in handy? On today's MoneyWise Live, host Rob West will talk with Joseph Slife about your list of top 10 financial moves for 2022. Then Rob will address some questions on various financial topics. 

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Finishing Well
Hans Scheil
Rob West and Steve Moore
Finishing Well
Hans Scheil
Rob West and Steve Moore
Financial Symphony
John Stillman

Today's version of money was one sore phone lines or not you're still working on your financial New Year's resolutions for 2022. List of options for health by Rob Weston you come to the right place to get your list of top 10 financial moves were 2022 will chat about many of them just ahead will have some great calls lined up but since we're not alive today. Please hold until next time. This is moneywise life biblical wisdom for your financial journey 22 is the title of the cover article in the current issue of sound mind investing in today. Our guest is the author of that article Joseph's life, and Joseph, welcome back to the program. Well Rob, it has been a while. Merry Christmas to get into you as well.

Well Joseph this article which is offers a list of about 75 possibilities and I know you urge folks to pick a personal top 10 for the year ahead. So I'd say you've definitely covered the bases well we certainly hope so what we've done is to survey all of our SMI articles from over the past year and we categorize them by subject things that relate to spiritual matters are getting financially stable. Building an investment portfolio things related to preparing for retirement so on and then in the online version of the article Rob we have linked hyperlink to each information about each of those things to an additional article to give people more details. Obviously, all 75 ideas are not going to apply to each person.

It depends on this season of life and family situation. So on but our annual top 10 approach is designed to help someone I look at all the possibilities that fit who they are and where they are in their finances and say you know what I really need to do that particular thing, and that when that one and ultimately to pick 10 that can be there.

Action items for 2022 serve to do list list of resolutions as you say that'll help folks make financial progress in your head but I love this approach because a lot of folks just need help getting started. You've done that hard work for them and picking their top 10 will be a great exercise. So let's dive in and get to as many as we can. Joseph what's first.

Well we always start our annual list Rob with a section titled something like first things first or what's most important. This is where we recommend the things that are spiritually foundation you know at SMI just like you do at moneywise Rob we look at financial matters from my stewardship perspective. God owns everything. You and I are stewards managers of what he entrusted to us. That's also one of our suggestions this year in this area is to practice living in conscious dependence on God and of the Lord is not just out there is somewhere and he's not to be acknowledged only on Sunday so we are urging people to take time each day to recognize their literal dependence on the Lord for for life and for breath and for everything to to quote the apostle Paul for Mac 17.

We think it's a good idea for people to develop a habit daily habit even of an hourly or or even more often.

Habit of saying short prayers throughout the day to acknowledge their powerlessness and God's power and what this does is reinforce and reinforce the idea of the truth that that God is our source and supply and we serve him.

It has stewards the another one in this section is to build your financial house on the bed rock of biblical principles in a Rob we can never tell ahead of time what financial storms may come our way or run, though, no one could have predicted the things that have happened over the past year and 1/2 or so, and we could have more stuff, more storms in 2022. Not predicting that, but it could happen and we believe the people will base their financial decisions and their actions on the protective principles. The stewardship principles that are taught in Scripture will be able to weather the storms yes another one in this sort of spiritual section, Rob, is that if if you have the spiritual gift of giving been cultivated every follower of Jesus's call to be generous. We all know that but from the New Testament we also know that God has given some people this special gift of giving. Just as he's given some people. Gifts of administration or teaching or whatever. So if you have that gift of giving or or think you might study what the Scriptures say about it and please make the most of that gift. Joseph's life from sound mind today were talking about your 10 most important financial moves for 2022 Rob West. This is moneywise life much more to come. Just around the stay with her back to moneywise live around Webster hose jointly. Today Joseph's life with sound mind investing. Joseph has recently written the cover article for the current issue of sound mind investing's newsletter. It's entitled your 10 most important financial moves for 2022 and perhaps you're still working on your financial resolutions. Well the great news is, this article offers a list of 75 potential resolutions for you to create a personal top 10 in Joseph we started today with some ideas that we put in the category of spiritually foundational, which is a great place to begin. Now we move on to strengthening your financial foundation so that tell us what you suggest here Rob but one of the best things that anybody can do in this area of of strengthening financial foundation is to cultivate good habits. We all know how easy it is to pick up bad habits but good habits have to be cultivated. They have to be worked on. And that means taking specific actions that reinforce good habits. For example, making a spending plan that puts you in a position to pay down your debt steadily so your pew paying off your credit cards and car loans and and those are two things of a priority. And here's one in this category that I know you like Rob. We encourage people to start using a money management app to track their finances and there is what I have no evidence that moneywise.

Perhaps you've heard of it, what we think that's a great tool for making financial progress and to be great thing for somebody to start with in 2022 and here here's an idea on the spending side of things that that can really help and it's one that that many people never think of and it simply this, speak up to save money. We have a guy in our office, met Bill.

He's been on your program before us and and Matt does this frequently. He just asks very politely. Is there any better deal. You can offer me and then he's found that when he asks just forthrightly and politely he's been able to get fees waived. He's get been able to get that subscription price is lower just just by making of of polite request to somebody and and smiling and being firm yes and I asked to try this admits the suggestion one year with my Internet company. I called and they lowered my my bill by $20 a month so you just never know unless you ask. And here's at a very timely one for this month, don't go into debt with Christmas spending. Yes, you know, if you turn on the TV this time. Here Rob or the radio you browse online marketing hype and financing deals are all over the place and we just encourage people don't be swayed by any of that instead develop a plan for your Christmas spending and buy only what you can afford. You will not regret it. That is great advice.

These are great ideas and that last one in particular is something you can do right now.

Resolve not to call into debt.

This Christmas don't get swept up in the hype and then after the new year and this is key begin saving for the next year so you're ready the next Christmas card Joseph. These are really helpful. Let's move into another category and this one is developing your investing plan what you have for us. Yeah you know it. Rob in this area. It's kind of a balancing act. Scripture encourages us on the one hand, to prepare for the needs of tomorrow.

That's very important. It also warns us very forthrightly about becoming hoarders that something we are definitely not to do ill people are just a mass stuff to be amassing it for ourselves and in building bigger and better barns. So as you invest. It's always good to keep in mind that this isn't just about building as big a nest egg. As you can is about saving wisely and proportionately for future needs without being too self focused and building too much stuff and saving for the future like this investing really starts with looking realistically at where you are and then developing the prudent plan that moves you toward your long-term goals and we of course urge people to make.

This is a spiritual matter, not just a financial one. We think people are are well served to pray over these sorts of things and to seek out wise and godly counsel. That said, we also want people to recognize that wise investing choices often reflect common sense.

You know sometimes people have this idea that you gotta be a no Wall Street wizard to be an investor and that is simply not so.

In fact, any basic investing lessons are closely connected with what people already know and do that. For example, a few weeks ago my wife and I took a trip to see some relatives for Thanksgiving. We went down to Florida. We mapped out a travel plan and we stuck to our plan, we know we knew where we were going to be and when we're going to be there traffic permitting and at the same holds true for investing help plan your way. Don't just head off in any direction you have a destination that you're going to yes no Rob, here's a suggestion in this area of of investing that won't bite everyone but does apply to many people and it's this. Don't be overly rigid in your investment plan. Now that may sound like I'm contradicting what I just said a moment ago about planning your way. But the idea here is that no life happens. You have to have some flexibility and if your plan is too strict. You can miss out on some very important things in life. For example, you might be thinking, you know, all while taking a family vacation cost too much that's going to mess up my investing plan and I can almost guarantee around it on your deathbed you'll regret that decision of giving up the family vacation because that's where you you build bonds of relationship and memories with your with your family absolutely of being too strict. Also, in some cases could cause you to turn a deaf ear to God, you might be thinking, well, you know, maybe I should give generously to this thing or that thing, but that's going to end interfere with my investing plan and so you don't do it. So we want people to plan but do not allow their plans to become like of a financial straitjacket that keeps them from doing really important things.

Great advice. Sorry Joseph, time for just one more category. Let's finish with some ideas related to college in particular young around.

That's a very important for parents who have children of a certain age, you really need to learn how to navigate to the eye.

The college admissions process there ways to make that system work to your advantage if you and your child have selective colleges in mind, such as having your child take advance basement classes in high school and and get involved in extracurricular activities, especially in leadership roles, but there also some things you can do if you have less selective colleges in mind and we talk about that an article also one of our top 10 options in the area of college is to study very carefully. The various kinds of student loans and what they entail. Regarding interest and payment options.

Unfortunately, many people take out college loans without really understanding what they're getting into.

They look regret it later. And that includes the parents Rob who borrowed to put their kids to school. It's a shocking fact that people older than age 60 make up the fastest-growing segment of college student loan debtor's that really is staggering and something we need to heed the warning related to so we don't inadvertently allow her kids to graduate with a lot of debt. But Joseph were just about out of time today any last words of advice for listeners you Rob all in the way I ended the article in the SMI newsletter for this this month and that is as we start a new year. You know we all have this tendency to think, oh, if only I knew what lies ahead.

And of course we can never know that and probably if we did know it, it would be rather disconcerting. But there is something we can know and it is something of immeasurable value. The apostle Paul talks about this and in Philippians chapter 3 he says he wants to know him that is Jesus Christ.

Paul says that everything else is worthless when compared with the infinite value of knowing Christ Jesus my Lord, and you know it Rob that really should be our true number one goal for 2022 and for all the years to come. That's great advice in a great place to finish Joseph, thank you for joining us today. Well thank you, Rob, and again from all of us at the SMI happy Advent to you. Merry Christmas.

Thank you sir and you as well. Joseph's life is been our guest today you can get the entire list of 75 important financial moves for 2022 other website of sound mind will be right back. We're so grateful you joined us today or moneywise this is biblical wisdom for your financial decisions about West Coast ART was enjoying some time off in a single call in the woods here to answer the call, but we lined up some great question will take those right now will head next to Cleveland, Ohio Charlene a thank you for calling. How can I help you, thank you for taking my call and hopefully will contact my made a mic to outside or car parked on probably about three years ago the card not in the card now in applicable and we're trying to decide if they better collect the card though. Take the hit on their credit pay the difference from whatever they now charge that and then and begin to rebuild or we keep trying to throw money into a car that not even being you the caveats billeted that we are planning on speaking a new markets probably within the next six months or so alright let's talk about your son's role in this. What is he paying on this right now I'm hesitating Alaska dummy.

I got Mary Lowell eight and tell you what paying half of the car payment and we were paying containing the note and paying the insurance. The parent had been put on hold because the card is going anywhere and they are trying to build their family or whatever. Though he had not been paying anything on the car for a while, you all that much do you owe on like close to $8000 right now with a very bad Carlisle okay and do you have any idea what it would take to get it in working order enough to sell it fun part. Near the wire issue with the car like a dealer manufacturer issue. We had a mechanic go over to Carla, thank you, and he cannot fake that, though, where China had had help from one site to another try to have the dealer look at it because they were looking at putting more money into even attempt to get it fake that plan.

The key is to get this thing sold and I realize you may be upside down, you probably are, but that's gonna be better than you know you just letting this sit forever and having to satisfy this loan because that's can be my recommendation. I mean, you and I think our obligation as believers is to pay my proffer of Psalm 37's clear. The wicked borrows and does not repay, so I think we need to have an absolute commitment to repayment. In my view, and the very best way to steward this asset, even though it's problematic is to ask the Lord to give you some wisdom lead you to the right mechanic who can get it in working order. Who can allow you to sell it to at the very least offset some of the $8000 you owe. I think this is also a learning opportunity for your son to step in and do what he's promised to do and not skirt that responsibility is he starting out his family, which I realize is tough, but so is so you know, making good on your of your commitments, in which he made to his mom and dad and you know this is why the Bible is is pretty clear about not cosigning in your learning this lesson so I don't mean you know to throw this back at you but you're the reason that proverb says be not one of those who gives pledges is because the FTC, the Federal Trade Commission says 50% of the time when you do this the person you're cosigning for will not pay in the situation is bearing that out. So I think from my vantage points are surely none. I know this is tough and it's you. Perhaps not what you want here. I would say were going to make a commitment to make good on this loan were going to approach our son and say listen, even if it takes you the next 15 years. I need you to put something in your budget every month to make good on whatever commitment he has made. From the very beginning so he can feel good at the end of the day that he's taking care of his obligation and thirdly I check around at your church or with friends, see if you can find another mechanic who can know it would be willing to take this on, and at least give you a second opinion on what could be done to remedy the situation so that you could in good faith sell a working vehicle that at least in part could take care of some of the $8000 and those would be the steps that I would take, but give me your thoughts.

I realize it's easier said than done yelling at the question that we are supposed to pay her debt and fell.

At one point headed by let the card though thought that with so letting then maybe we should mean radically if I could find. And I'm like, if the dealer if you have a dealer at this point that if we can find and get the car while not illegal, it sounds more though it happened along to someone else who in the family need a car if they can afford to maintain the pain that person in the family. Well that's good to come down to whether or not it's upside down and you actually owe more than it's worth.

But I would take that approach, you may want to go and join AAA and await the seven days and then you could go toe. It is a part of that plan that will be fairly reasonable and you'll find the place you want to take it whether that's a dealer or reputable mechanic who can get to the bottom of this, but I think that's the way to go and I think beyond that, you know you need to look at how you can do this in such a way that you can actually sell it and get out of it what kind of car is it might ask an holders in a right letter 212 and had some type of grounding wire issue that the card at the start. Listen, you do you do this you stay on the line.

Robert Sutherland is helping us with research today is a car guy, so I'd love for him to weigh in on this, but we don't have time to do that on the years stay on the line. I will talk to you off there in just a moment before we go to our break. Let me remind you of the importance of your financial support right here at herein. Moneywise media is entirely listener supported, which means our broadcast daily are moneywise after moneywise coaches are website all the things that we do to encourage you with biblical financial wisdom is a direct result of your financial support. So if you would prayerfully consider a gift here before December 31 would certainly you can add to our website moneywise and click the donate moneywise and click donate to give online safely and securely.

Or you can find a mailing address or phone to get moneywise and click donate before December 31, and things to pause for a brief break that was much more news. Thanks for joining us on moneywise live on Rob West euros for our team is taking some time off today or not. This is accorded to go: but got some great questions lined up in advance to, let's head right back to the phones, Sheridan, Illinois hi Earl, thanks for your patience can help us or six and I love my wife and I both have an IRA and I also have a TSP account and I'm wondering what the latest I can start taking money out of that and how much is the minimum just keep it building or whatever yeah well the secure act made a change to the required minimum distribution rules. If you reach age 70 1/2 in 2022 or later. Which if you're 66 that you you are first RMD, you will need to be taken by April 1 of the year. After you reach age 72 so used to be 70 1/2 now it is 72 so that that point, you would then be required to start taking your required minimum distribution and your required minimum is just a table that is produced by the IRS and there's a calculator on their website that will allow you to determine approximately what that amount is. But basically it's a function of your life expectancy based on your age and the balance of the account and that's across all of the accounts that you have that are in a tax-deferred investment accounts that we need to be taken with an RMD you can find the RMD tables in IRS publication 590 be 590 be in by the way, I didn't know that. Off the top of my head. Jim Henry is here today and just told me that I can give that to you but the bottom line is that's out works is that make sense.

So after April of the year I turned 72.

I have to start drawing some funds off and if the percentage is that right yeah it's a the percentage is basically a percentage based on the balance and your life expectancy and it will tell you what you need to take note that I dole it out in monthly increments are take a lump sum what you can take it how you want. So the key is you just have to take out the amount that you are supposed to take out by the date you take it now if you want to back that up and start drawing it out monthly and use that to supplement your budget or something like that. That's find the key is just that you get it all out by the date that it's required. Whether that comes out little bit of time or in one lump sum right I understood earlier that you you're not a real big fan of annuities so drawing amount from the IRAs and from the TSP account is suitable.

Is that correct yeah. So as you look at your budget Earl, you're still working now as I write.

Yes. Okay.

Have you started to think about what your retirement budget will look like you know if there's any changes. Perhaps you know your any debt you have including your mortgage maybe is paid off, or close to it by the time you retire and you're not saving for retirement any longer. Maybe you'd drop an insurance policy life insurance policy you no longer need in the key would be to kinda settle into what does our retirement budget look like.

In some cases it's 70 or 80% of your pre-retirement budget and then look at your income sources. Okay, we have our Social Security great got this RMD. The organ have to take every year we got your pension or whatever it might be, total. All that up and figure out what you need. Hopefully, the, the amount you have to withdrawal off the TSP and the 401(k) or IRA would not be more than what say three or 4%. We typically say 4% saw an article yesterday for MorningStar just saying that, given the fact that people are living longer and the modest returns were expecting the market in the next decade. You know that the new numbers there in their world.

3.3%. So, less than 4% of the idea would be. We take some number out percentagewise each year that allows the portfolio to at least maintain its value for the rest your life.

If not, grow a little bit in the key would be. Would that you know cover your needs on a monthly basis if you'd done some of those exercises well not really but I really don't need money I make out where I'm working, going into my savings, letting out okay okay so you'll be all set. So I think the opportunity for you. Then, because you really don't need to take anything out, other than what's required is to see what of the other creative ways to satisfy that RMD without incurring any more tax in one of those is what's called a qualified charitable distribution.

Were you aware of that. Yeah, I've heard of.

Okay, so that would be a great opportunity for you Earl, because if you're already doing some getting out of cash. You could perhaps stop that, giving due and out of the IRA through Q CD it reduces your adjusted gross income for that year and gives the full amount to the ministry or your church or charity through the qualified charitable distribution so that could be another great way to go about this and reduce your tax liability at the same time but bottom line is I think you know if it's money you don't need them unless it's can be given away through Q CD you could just suck it away in savings and that's an opportunity to increase your giving verb, save for some other purpose like that.txt tax credit.

Yeah, for sure, it's a it's a great tool listen all the best to you and this next season of life. We appreciate you listening calling today. God bless you to Ohio hi Charlotte, thanks for your patience argument. Well, wondering we do not have a lot of money put away her retirement like I work part-time in my head went back to work part-time and not only have a couple small IRAs and I have my emergency fund with wondering, he had Went to work part-time for a company and it's making pretty decent money and with wondering matching 401(k) and what I'd been there very long.

We were able to sign up for something like that are lower, not to year yeah yeah I think it would, especially if there's matching Charlotte because that's free money.

So if he's going to make a contribution in their gonna match it $0.50 on the dollar a dollar on the dollar young to get a 50 or hundred percent return on your money anywhere else guaranteed like that. So take full advantage of that. Also, some companies offer the choice between what's called a traditional 401(k) and a Roth 401(k), I'd probably opt for the Roth if it's offered.

Because taxes are likely to go up in the next few years.

That's at least you what's been talked about. I don't think using my talking about them going any lower and certainly plenty of talk about them going higher, and so if you could go and pay today's tax rates and let that money grow and then come out tax-free down the road. That would be a good thing.

But the very least, given that you still have some ground makeup on your savings if there's a match take full advantage of it. And even if there's not, it's a great opportunity while he still working to go ahead and suck some additional money away) very good. We appreciate your call today. Thanks very much moneywise live is listener supported. If you're part of the money was community.

We would ask that you would prayerfully consider supporting this ministry you can do it quickly and safely on our website moneywise just click the donate button that would help us to ensure this broadcast stays on the air. We can continue to bring you our Alpine coaches and CKs all the things that we do not to mention all the great content on the website again. Your gift tax deductible as a charitable contribution can make your website moneywise just much more, moneywise live stay with us were to pause for a brief break right join us today for moneywise live biblical wisdom or financial decisions care team is taking some time off today were not in the studio, so don't call it, but we've lined up some great questions in advance that I know you'll enjoy just a moment will be talking to Judy and Indianapolis Daniels waiting patiently in Chicago but next up Eileen in Bradenton, Florida hi Eileen, what's on your mind today. Thank you for my call and I have an 11-year-old daughter and I am trying to figure out as a mom. The best way to create or show her how to be smart with money and I know that there's different personalities when it comes to money. Not sure I figure turns out she doesn't seem to care. That's, that's one line rate and not a kid that you know it all got me biting her so that I get another clue and money you might have the mom and in no ensure that she's more of a saver than offender and makes good choices but got money well the first thing Eileen is to do exactly what you're doing and that is to recognize that you need to be imparting this along the way because you're raising a future adults and we know that money is the chief competitor to Lordship or at least that's the way I read Scripture. It's the very minimum, a primary competitor, not to mention the fact we want her to be financially literate in God's word has so much to say on this topic. So first thing I want to do is send you a copy of Howard Dayton's resource called the ABCs of handling money. God's way, which I think will be a great tool that you guys can work your way through. And speaking of my friend Howard Dayton. He talks about being an M VP parents and his MVP stands for model verbally communicate and practical application and so if you go back and they look at that.

The first question is are you modeling how to handle money God's way.

Are you all talking about regularly. The fact that resources are limited, and God owns it all in your steward or manager of his resources and therefore you need to live within God's provision and be content with what God is provided which means you need to have a spending plan and so money can't be allocated to everything and so that plan is God's picture of how he wants you to use his tool that he's provided. According to your values and priorities and so for things like you eating out her entertainment to her miscellaneous expenses are clothing, there's only so much to go around and it's a part of a plan when the money is gone, it's gone, and we wait till the next month and I think we can get creative with that and that even goes to the practical application you know Julian I one month turned our eating out envelope over to our kids and we said listen, this is what you all have this is what goes into this envelope every month and so you guys this afternoon. It was a Sunday or consider on the table and figure out how we can allocate this money over the next 30 days and so it was hilarious to see them got of the deciding debating if you will, on the how they were to spend the money and whether we were to go out to after church and they wanted to do something on Friday night and yet at the end of that process, they had figured out that we couldn't do it all and so they had to really decide what the plan was, well, they began to see that resources are limited and therefore we gotta work together to figure out how to allocate God's money, and so I think as long as your modeling that which means regularly talking about that's that verbal communication and then you're finding ways to provide practically yelled.

Examples of what this looks like that's going to go so far because when we talk to adults you know I was an advisor for over a decade answered thousands of questions on the radio. What we find. Eileen is that if some of your earliest memories around money are key drivers to the way you handle money today and so that environment you're creating whether there is an abundance or whether money is tight. Regardless, it's about how you approach that in Cree teaching opportunities to provide those practical examples and the conversations around what it means to be a steward of God's money. So I think as you think about modeling and verbally communicating and practically applying that with her. You probably know more than you think you do in terms of what you might be able to do to instill some of these principles in this resource. I mention the ABCs of handling money.

God's way, will give you a framework for that. Okay well thank you so much that I really appreciate the help and I do try to lead by example. In many ways, not just money that I should thank you very much that you're welcome. We appreciate your call today.

God bless you want to Chicago, Illinois hi Daniel, what I do for user user.

Thank you so much for taking my call so I was telling Amy about my intuition.

I started my 401(k) about six years ago right now I feel like I have a lot of debt and I make it the wife, think again.

My contribution and get rid of my debt now so tell me about that. What what debts do you have so we have a credit card with $8000 and we owe a family member.

$4000 okay all right then. Are you living on the spending plan yet. So we started light below way going right now. We feel like there's a lot of money, get like lose like okay what happened to the $10 what happened to the $8.10 were like okay you nothing I know totally what your sinks and that really is starting with an accurate reflection of what you're actually spending which means you may need to track for 30 or 60 days just to see where your money's going that may even be a surprising exercise of the money was apt can help with that.

If you download the app from your app store to search for money was biblical finance were done here will get your information.

I'll make sure you get a six month subscription so you can connected to your bank accounts and automatically download your transactions. There's three systems in the app for managing money. You probably can want to choose the tracking system for the first 60 days just to get a proper accounting of where that money is going and then you can create a plan and then ultimately use the digital envelope system that's gonna be key because your margin Daniel. That is the money you have left over after the bills are paid is going to be essential to you getting this debt paid off.

What percent of your income.

Are you putting in your 401(k) right now okay by then I can and I am about 15 all right and does your company match.

Now we have a patient okay I and do you know roughly what amount the dollars going into the 401(k) every month at 15% that you're putting away right right now. It was about 240 every week.

Okay all right supporting about the say on average about $1000 a month away.

I would present it back that down to about 5% until this credit card debts are paid off. In fact, if there's no matching you could eliminate it altogether. Talk to me about the family debt that you have is that accruing interest in are you living up to your commitment on that so much in our heart we know that we'll get you actually exactly my father no money again where you need and would be like putting an envelope today and and then something comes up and we grabbed envelope to something else and I think I'm doing the wrong putting money into a 401(k) for retirement, but I feel oldest person I see daily basis and not well. I agree and I hear in your heart that you really would feel a lot better if you pay that officer regardless of the interest rate, I'd probably for me prioritize that and I think as long as you do the hard work on the spending plan in your living within it, and you're really trying to control your expenses and free up as much margin as possible that I be comfortable with you limiting the 401(k) but if the money is good to continue to leak out, and you're not gonna save for the future and really focus on this debt reduction I'd be a little concerned but if you're willing to do the hard work I'd say eliminate those 401(k) contributions.

You're not getting any matching I don't see the market doing anything significant in the near term. Certainly not equal to the interest you're paying on the credit cards so I take 100% of that and anything else you can free up by being more diligent in controlling your expenses put it toward your family payback first and then the credit cards. Once that's gone let's get at least one month's expenses in savings and then restart the 401(k) okay okay all right God bless you buddy thank you for calling today. Working with finish today with Judy in Indianapolis hi Judy, how can I help you know that I like to make. I only have a 13 year old child and I do not know if practical that I'm paying that much money so that you make sure that my child will have something just in case something happened to me.

What would you rather I bite my knee in queue up for all my rock RIAA or for this insurance and by the way, is a term insurance Judy. I think Sharon yeah but do you know if it's term and whole life. Is there a savings component to it, or is just pure insurance. I know I will go down. Sure ask you this if something were to happen to you with that place a hardship on your husband continuing to provide okay so they're counting on your income to be able to maintain their lifestyle. Okay so what I what I think you need life insurance absolutely so this is a worthwhile expense but you don't need to do it in a way that combines a savings vehicle with it because you're not gonna get enough insurance.

It's gonna be too costly and there's better ways to save. So both I would cancel anything but I go look for a term policy that 10 times your income on account of 12 month basis of making 50,000.

I look for $500,000 in life insurance but if Anna term policy.

It's probably gonna be no eighth of what you're paying for whole life insurance. Once you get that policy in place you got the right coverage, then you can cancel this other whole life policy. We appreciate your call as light as a partnership between radio and moneywise media that's good for us today. Think survey with thank you. My team and then Eric and Jim join us next time will you

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