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Money Tips for the New Year

MoneyWise / Rob West and Steve Moore
The Truth Network Radio
January 3, 2022 5:08 pm

Money Tips for the New Year

MoneyWise / Rob West and Steve Moore

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January 3, 2022 5:08 pm

The holidays are over and it’s time to make some changes to improve your finances during the year ahead. Do you need some pointers that will motivate you to get past your procrastination? On today's MoneyWise Live, Rob West will share a list of money tips that will help you get started. Then he’ll answer your calls and questions on various financial topics.

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Zero over the Christmas tree is needles like nobody's business but it's time to make some changes by Rob Weston. I'm talking changes to improve your finances in the coming year.

Of course it's time to end the procrastination that I got a list of money to help you get started that's first today that it's all your calls at 800-525-7000. That's 800-525-7000.

This is moneywise live biblical wisdom for your financial decision.

Okay, so want to consider doing before another year sneaks past you obviously first is taking a good look at your budget and making any necessary changes for the coming year.

Inflation has reared its ugly head.

So you'll need to account for that. Everything from gas to groceries is likely to go up, so you may need to cut spending in other areas like entertainment.

If you haven't downloaded the free moneywise app yet. That's definitely something you can do to improve your finances.

It's a powerful budgeting tool with three different ways to choose from for budgeting your money you can get it where ever you get your apps. Another important step you can take to improve your finances is to finally set up your emergency fund open a savings account at an online bank and have something out of every paycheck automatically transferred to it, set a goal to save $1500 when you get there.

The next goal is one months living expenses, then three months ideally keep going until you have six months expenses saved up, you won't get there this year.

But don't worry about that. Just get started, cut discretionary spending to give yourself margin your emergency fund helps you stay out of debt when you're hit with the unexpected. And as you start to tweak your budget. One area you definitely don't want to cut back on is giving to your local church. Make a plan for how much you intend to give this year. Remember the tide. That is just the training wheels for giving prayerfully consider giving more than last year because your church is feeling the inflation crunch to now.

I talked recently about our next money tip, but I'll mention it again now because it's so important. Make this the year you finally draw up a will save your loved ones the unnecessary trauma of having the probate court decide how your estate is settled.

Should something happen to you. This is critical if you have young dependents because they will gives you the opportunity to name a legal guardian. The next step is. Get ready for interest rates to rise with inflation back.

The Federal Reserve will almost certainly have to step in and raise interest rates soon. If you're unfortunate enough to have a variable rate mortgage. Start planning for higher monthly payments. The same is true if you have a home equity line of credit. It also means that interest rates are likely to rise on consumer debt, like credit cards. If you have credit card debt.

Make a plan now to pay it off. Use the snowball method to pay off the smallest at first while making minimum payments on everything else. When the smallest debt is paid off. Make extra payments on the next smallest keep going until all of your consumer debt is paid off.

Now I should mention that there is one plus side to rising interest rates.

It means banks will likely start to offer higher interest rates on savings accounts okay. Next, consider bumping up your retirement contributions.

If you're not on track to reach your goals. Take advantage of any employer matching funds to your 401(k), you can contribute up to $20,500 to your 401(k) in 2022. If you don't have a 401(k) at work set up a Roth IRA, you can contribute up to $6000 in 2022, 7000 if you're 50 or older, you won't get a deduction for these contributions.

But that's okay because you'll be able to withdraw your contributions and earnings in retirement tax-free doubt. No list of money tips would be complete without something about taxes, now's the time to get ready for tax season and filing your 2021 return the last year saw major changes in work settings due to coven just over half of American workers now report that they're doing at least part of their jobs at home. If you're working remotely. You may be eligible for more deductions. This is especially true if you were converted from an employee to a 1099 contractor working from home means you can deduct a portion of your home expenses.

If you meet the requirements. If you are used to doing euro taxes, with or without a computer program.

This would be the year to take your taxes to a professional because things get a lot more complicated if you're self-employed as a contractor, odds are you'll miss deductions if you tried to go well, that's a list of money tips for the new year we hope you'll take advantage of them. To improve your finances in the months ahead here because her next. 800-5257.

This is moneywise live plug back to moneywise live on Rob West is today. Remind God's word and apply his timeless wisdom related to finances to the decisions you're making today. What's on your mind as we live give. Oh, and grow will that's the only four things we can do with money we want to apply God's truth to each of those one of those again. Well where is the money we live on the money we give the money we owe, namely depth and taxes and then the money would grow. That's her savings in our investments and among each of those four are theirs timeless wisdom in God's word. We can apply to know how we move forward with confidence, not the were always going to have an abundance will be in times of need. In times of plenty. The key is, no matter where God has you living your living with in his provision your living with contentment, which gives you joy and if we live within our means meeting. We have some margin, however little or much. That is, that gives us the ability to live openhanded and give generously will that's our goal here at moneywise live we'd love to hear from you today.

As we come back from a break and look forward to diving into your questions in a new year beyond the Christmas holiday and a great time to really get you set on the right track for your finances in 2022. We got slides open.

Here's the number 800-525-7000. That's 800-525-7000 will begin today with Steve and her CPA Steve, welcome to the broadcaster redhead hi Rob, happy new year either Simeon and I think.

Thanks for ministry in the first time caller landlocked community are depreciated. Well, think yeah I think it has some flawed logic.

Not sure what's flawed about it so I need some help topic is winded when the claimant's of security. I retired last Friday I literally like my tireless right after 33 help the same company and I turn I turn 65 in December as well. So my full retirement age is 66 years and four months not plan on waiting to claimants of security based on what I've heard and from you and other people that you have sufficient 401(k) funds, little one, but I'm still wrestling with the decision because if I claim now I probably be 65 and four months until I get it's over top of that one year difference.

So the way full retirement age is 66 years and four months I get $2300 more. So at first glance, it makes sense to wait right after $2300 is what I'm wrestling with. And it probably flawed logic, thinking that the approximately $32,000 at the pull out the carpet when your expense is better off being part of and working with in a larger portfolio and that the $2300 extra For waiting might be overstated. And I might take long to get it back and just when the straight math so that some kind of struggling Rob. I think my logic is flawed and it's not to try to tell me why you know very goodbye present to question. Congratulations on your new a retirement tell me what you most looking forward to this next season am not retiring from life I'm I'm moving on to do more with my family more with the church spent 33 years of hard work and I want to make a part-time job, haven't thought about that yet, but not going to the transition from yeah sure I would give some careful thought to what God has for you in the season, but it sounds like you really think it through that with this intentionality and that part-time job could play into this as well.

But what is that shortfall.

If you don't take Steve Social Security did you say you'll need to pull 32,000 to cover that first failure out of your 401K and want one site. If I claim now I get around. Roughly 30,000 a year and I wait in the another $2300 so I figure in my first year living off of 401(k). My IRA will transition to an IRA. I'm going to I think it probably can't replace that no but I'm not getting it. So security I would in essence pull out. So maybe my logic slow day or two, but I think it the one you're not getting Social Security.

I'm covering up with my 401(k). I guess one.

The first question would be, can you make up a portion or all of that some other way.

So for instance if you're planning to work part-time. Your one would be a great time to do it because here's the thing. If you wait on Social Security. It's like getting a guaranteed 8% increase or return on your money.

Now I realize you don't have that your one worth of collections and so you can have to make that up with this increase, but you will at some point and then you'll be quote in the money.

The question is what would the equivalent of that do in your 401(k) moving forward and with the modest growth estimates were thinking will see in the next couple years because some of the headwinds that we have, namely no inflation in overvaluation's on many of these companies after a red-hot stock market has kind of pushed us up to some pretty high levels of the question would be you. What are you gonna do with that same money in the 401(k). You're certainly not can I get a guaranteed 8%.

So I think that's the opportunity you have.

You know the real risk in retirement isn't dying young with not enough money collected from Social Security. The big risk is living so long that you deplete your savings at which point a larger Social Security check every month could be a real benefit to you and that's where this extra $2300 or so a year that you're going to be bringing him for the rest of your life.

If you wait could really pay off much further down the road, then you know you going ahead and collecting even though you know at that point, you would have to draw from the 401(k) for your one by waiting to set make sense though it makes total sense. Robin affect what you did explain to me is what I've been thinking all along, but I guess reality sets in. Now not getting a paycheck anymore. I'm gonna rethink my original strategy, but now you have a sort of back on track. Like when I first called, as I think my logic is flawed and I think I'm just think I'm thinking more and more about looking at 323 and do within the 401(k), but you kinda get me back on track and I think especially get a part-time job that can offset the 32,010.

I think long-term wise as well as a little live long enough, which had good health and and is no neopaganism horizons for is my hope that is so I should live long enough to hopefully use that extra $20 a year exactly and I think that's the big idea is that it really provides some offset to that risk that you do in fact live a long time and you need that money down the road and you'll be glad you have it that the Lord calls you home much sooner than this is really a nonissue anyway so I think if you can go into it with that mindset of you know what yes simple and some money out of the 401(k) but the 401(k) now that I'm in retirement and I'm to be much more conservative with the prospects of even an over inflated stock market combined with the fact that hopefully you can offset a portion of it. I think they know the best course of action long-term. And of course we don't know don't know where the Lord does, but you're the best opportunity for you is to have that bigger check for the rest of your life if you can wait so I think I'm on that track. If you agree I do agree, and I knew I call you some good advice. And that's a I got to think you might drop all right. Steve listen, we appreciate your call today.

God bless and happy new year and all the best to you in this new season of your life.

Phone numbers open today. Folks, 800-525-7000. That's 800-525-7000 would love to hear from you. Whatever's on your mind today we come back from this next break will dive into whatever you have for us is savings or investing, perhaps giving or maybe that pesky credit score. Whatever you're dealing with. Give us a call 800-525-7000. This is moneywise live recognize God owns it all.

We are stewards therefore money is to accomplish his purposes. Think you were spending five for joining us today on moneywise live here with us today. The phone calls are stacked up. So let's get right back to them dermatologist in the sea is Marcus, go right ahead and appreciate you and your team my my question if you had a call month without being hit insurance company had gifted me with a check about $6000. One should I purchase a car with my card counters on and then you you that and as they have the cash car bar don't have that car payment and if you knew what I did previously and just making a mess FFF innocent and regular interim FLSA, or should I buy a brand-new car like a treat, 20, 22, 23 with the dealership Martin but then I would receive restart payment Pay on pumping.

Yeah, yeah, or maybe there's an option right there in the middle. Marcus, which is to take the 6000 and put it down toward a new or used car where you've missed some of the significant depreciation that happens in the first year.

Certainly the first 24 months of owning a car but you still have a good reliable car even though perhaps there may not be a whole lot left on the warranty.

It's well-maintained you know cars these days are running at least 100,000 miles. Hopefully 204,000 or more, we got 250,000 out of our last car that we turn then here's the goal you long-term. Marcus you want to own this car free and clear, and I know you recognize and that's why you're wrestling with this. I think the key is how can you best accomplish that goal and I think for me as long as your budget will support it and I realize were in an interesting period were used cars because of supply chain issues are a bit elevated and so that has caused some folks to look to new cars, whereas previously they would have automatically gone use so you need to look at both options, but you gotta start with your budget and say okay, how much can I add in the way of a monthly payment to my budget and still meet the obligations that I have still came maintain the margin that you need so you can save and fund your emergency fund and fund your investments and give generously. All of those things and if you can't afford to add anything in the way of a monthly payment that I would say let's find the very best used car for $6000. You can wear an independent mechanic checks it out but what you don't want to get into is a situation where you buy something where the maintenance costs are no problematic in the rule of thumb, there is you know if you have a single maintenance item that's half or more than half of the value of the car. That's an automatic clue that you're spending too much.

If the maintenance cars annually are more than the potential car payment. That's another sign that we probably putting too much into this car and we be better off with a more reliable car were repaying into it so I think you've gotta start with your budget.

You gotta recognize the goal is to own it, free and clear and when you do keep making payments to yourself where you're the bank and now were funding the next car and the question is if you can afford to do something to get something that's a little newer little more reliable than perhaps that $6000 car would be that you don't free and clear, is that a new or used car or is it a brand-new car and I'm thinking even with somebody's elevated prices. It's probably a new or used car. That's three or four years old were you get it checked out and you plan to drive it for a long time to get it paid off as quick as you can and then keep making that payment to yourself. This all that make sense any kind unto you said about the war were made changes in my budget.

Current currently I live counterbalancing and I don't have any obligation, but I do own my house in about three years time going down find that road and I have my student loan which is said about ditching my biggest to deal with our my own my student loan. About 88 and my house at about 350 meso though to think differently as well as the confirm growth might be average carpet without looking at like 250 may be to pick it 300 out of the month. I could if I still back some 700 project I could do that but are projected to make it even longer.

So if you would I get to have a cash car now and then I own it and then down to stay on course. When I'm in my later 60 I don't have many issues in or I carry plaintiff car and get a newer car with the tax credit and then penetrated down next to three years. But then I will email it? I'm in the back, not just as I can well and that is the dilemma and I think the key is, with $6000. What kind of car what kind of vehicle would you be looking at. And can you you'll get an independent mechanic to say this thing has been maintained well enough it has low enough miles that there's a good reason to believe that you could drive this for the next three or four years and you won't get into a situation where you've got a major repair like you need a new transmission that's going to cost 50% of the value of the car or something like that. So again, I'd love for you to go in paying cash. The question is can you get something reliable that's not cost prohibitive from a main maintenance standpoint at $6000 it's going to be tough not saying you can't do it and that's where I said perhaps the second option is to spill finance just a few thousand dollars more, with the goal of delaying maybe not three years your payoff for those other two notes but maybe six months or year at the most. So now you've got something that's paid for.

That's a little more reliable. You have an extended your payoff on your other debts too far out, but you're not finding yourself back in the shop. You know every other month spending a lot of money beyond what you like on that to $6000 car you follow. I depreciated her prerogative in a preowned car. My other parents and I have the mother there and work in a moment I just got a message from interlock. Make sure you make it a matter of prayer. Do your homework before you settle on that card that's the right one for you and you can find one. The Lord brings one the 6003 had the amazing but if you can you're concerned about the VFD perhaps spending a few more thousand mark, establish much more just and thanks for joining us and moneywise live west your hose along with us today.

This is biblical wisdom for your financial decisions. As you get started in a new year. What great time to get yourself set up on a spending plan in the very best way to do that in my opinion is through the moneywise app you can find it wherever you download your apps.

Just search for moneywise biblical finance or you want to navigate on the web. You can go to you can set up your spending plan. You can download your transactions. You can use it. Digital envelope system or plan and track you can use the track only option we allow it to be modified to fit your personality, your temperament, how do you want to management you want to be more directional and hands-off great. We got a system for you about hands-on and detailed, well we got a system for that as well and one in between suggest that over to download the moneywise app and you can get started today are, let's head back to the phones ball is in Naples, Florida hi Paula, how can I help you all my call. Sure about capital gain tax on my mom home and now all 93 98. Beginning dementia combat in God but getting up there and my dad passed away seven years ago, three children, including myself. If we cannot hide RAC eat on this point.

Besides that it that we lost you think goal are you still there okay go there you are.

We lost just for second so your dad passed away and you're wondering about your mom and the home is that right right though my dad passed away. I yelled at Mont's title is still under both Durning but it funny. She decides to sell the home. She had about an increase of about 600,000 on the home. From what a price instead. 30 years ago. So my question is he going to be a little take the 500 ready for both of them on a net capital tax deduction think you do that or is the D2 50 yeah you know it's always best of these situations fully consult either a tax attorney or CPA just to make sure you get this right, especially if only your father's name was on the deed. If something called a right of survivorship has occurred. Your mother received your father's half of the property at a stepped up basis for value upon his death seven years ago. If not, at the very least she's entitled to the $250,000 exemption as her primary residence, but quite likely she's entitled to at least a part of his 250,000 because, as you mentioned, couples are entitled to 1/2 $1 million of capital gains exemption.

So what I would do is take the deed to a tax professional to have this sorted out is so you can make sure that exactly what is being paid is the right amount based on what she's entitled to. So she doesn't pay any more tax but certainly we don't want to get a tax bill down the road with penalties and interest in that kind of thing. So I think it's going to come down to hell, was legally titled how the estate was handled, but at the very least, she's not entitled to the full half-million dollars. It will be all of hers and likely a portion of his so I would get that checked out sooner rather than later. Before she sells so she knows what's coming. On the way of taxes and Paula. We appreciate your call today Sam's in Knoxville, Tennessee. Listening to W BM W MB W Samba redhead hi we just sold our house and we were trying to go debt free and we also have some revolving that card debt and signature loan debt. We don't know what to do first. Yeah, tell me what your plan is from housing standpoint.

Are you looking to buy something else right away. We are work we want to downsize and possibly built us tiny home okay nice as what was the proceeds of the home sale 200,000, and what you think you'll spend on this next property at least 125 okay and then break down the other debts that you have right now revolving is almost 14,000. The car is almost 30,000 signature loan is almost 12,000 and we also have some $5000 in medical okay alright so let's see were talking 56,000+ the medicals about 61,000 so if you knocked everything out, you'd still have enough to take care of the deal. The tiny home that you're looking to build and perhaps even have a little bit left over. Do you have an emergency savings fund separate from all of this, we don't. I would like to put 10,000 in emergency fund and would also like to donate and PowerPoint. Yeah so looks like you could just about do that. I think the question is are you in fact going to go ahead with the new construction and a tiny home because as soon as you start spending this money down.

Obviously, that money is no longer available for whatever your next move is from housing standpoint. I love the fact that you be completely debt-free, which would really put you in a strong position in terms of continuing to save moving forward. The key is we always want to make sure that were not treating the symptom and there's an underlying issue that's not being addressed. So, namely that your 14,000 in revolving that you what was that from his consumptive lifestyles and overspending into what is it that was there and are we going to be in a position uncertainly without having a mortgage payment, and in all of these other debt payments is going to be a lot more margin so I would imagine you be able to do this but are you can build a live within your means and make sure you know that we are able to continue to add to that emergency fund continue to give as you will want to and save for the future without you seeing any of that debt recur. But as long as you feel like you have a good plan for that and you all are settled on your next move from a housing standpoint that I'd say you can accomplish all of these goals. Funding your emergency savings and rightsizing your lifestyle and your spending and being completely out of debt which will give you a great position to be had in terms of the flexibility standpoint.

So I'm on board with this plan. If that's the conviction that you will have met that accent was from previous previous 2021 2021 so we were good. Okay, here you mean where the debt came from. Yes it was before 2021 I see. Okay. All right.

Very good. Yes, Eve demonstrated even with these debt payment you can live within your means and obviously this would put you in an even stronger position so semi-like the direction you're headed. I think you're gonna feel a lot better knowing that everything is paid off.

You guys can live the way the Lord has called you to and does my friend Ron blue says it's all about being able to live or die. Give her go. God calls you home you're ready because you to stay here. You can live within his provision. We can give as the Lord leads and directs us to go. Whether that's down the street or halfway across the world were able to do that as well that means were living openhanded able to respond to the leading of the Holy Spirit. And I think you should take a quick break we come back Bob Dole chief investment officer?

Global investment here to give us an that more around moneywise live biblical wisdom decisions back the phones in just a moment, but it's Monday and that's a great time to be joined by Bob daughter Goodfriend chief investment officer across more global investments because with the new year were all wondering where are we headed in the stock market and seems like now that's a topic that says been on a lot of folks minds. Given the recent volatility Bob happy new year my friend great to have you with us. I know in the coming weeks you will be able to give us specifics on your 10 predictions for 2022, which you publish at the beginning of each year, and I know a lot of folks, including myself. Look forward to that board and talk about the big themes today and I'd love for you to start by speaking to the headline of your 10 predictions for this year which is a tug-of-war between earnings tailwinds and valuation headwinds explained the valuation headwinds. Let's get the bad news out of the way first, is represented by what happened in the bond market today. Interest rates went up the 10 year treasury yield jumped a whole tens of 1% in yield. That's the kind of thing you see over a month maybe not day so the inflation pressures there witnessing the fact that the Fed is likely to start raising rates all work against the valuation on stocks. P/E ratios don't go up in that kind of environment will often come down a bit. That's the bad news. The good news is the economy is riproaring earnings are likely to be fantastic and that's what drives stock prices up leaving at least two countervailing forces and my guess is that's going to create some more volatility Rob 2022 will be a more volatile year than 20, 21, as this tug-of-war plays out in the key is which one is going to win. Are we going to continue to see earnings drive forward and you're saying that's gotta be a bit mixed up here I think. So I may look earnings will not grow as fast in 22 is they didn't.

21. Nor will the surprise is likely be anything like we saw in 2021 to reflect back in 2021 earnings versus expectations were a record Corporate America through revenue growth and better profit margins delivered incredibly good earnings versus expectations will still get good earnings, but probably nothing like we saw in 21. And conversely, in 2021 with the pedal to the metal monetary and fiscal policy are likely to see both of those become less favorable and that comes back to the tug-of-war.

We start with above are you expecting to see more broad-based returns this year in terms of the various sectors I noted today. You know the tech space is been riproaring the last couple years and today Apple became the first US company to reach a $3 trillion market.

That's incredible. Do you think were still get to see this narrow market moving forward or will it broaden the bid. I think it will broaden a big part of the problem in the second half of last year was at the average stock kinda went nowhere it at one point in early December before the year-end rally the US stock market was up a little more than 20%, but the average stock from its high was down over 25% tells you is the average stock is not participating. It's just kind of the big generals would've been working well. I think with the economy doing well and value stocks likely to be growth stocks were probably going to see some broadening but not back to the old high which will cause the technicians a little angst along the way it does underscore the job that you and other stock pickers have though as you pick the winners and losers. Perhaps this is the year to be more hands-on with the money manager or fund manager as opposed to just buying the indexes. I think that's right. It is self-serving for me to answer the question that way.

But if we are in an environment where those being July cubic stocks if I can use that phrase like don't do quite as well. For example, big update on the stock market today but Microsoft was now. I would love to see a lot of those sorts of days, which means that if your drawing and picking stocks that have some good earnings are not overly extended from a valuation standpoint, you have a chance of beating the average this year with higher probability of them last year. In the last few years service Bob last question we been talking a lot as of late about values-based investing faith-based investing. We've seen a big rise in ESG, environmental, social and governance investing.

It's expected to continue to grow. Do you think the values-based space will follow suit. I sure do. And I sure hope so for the sake of the kingdom, more more people I talked to welder people of faith are not people of faith are saying you know I think lining up my investments with my life with my values probably has a little lot American you help me do that. I see more and more of that, and I encourage your list listeners to do that many of them probably have already Rob I think it's a key feature to living a complete and integrated life very good will Bob happy new year to you folks.

If you want to get in on the reveal of Bob's 10 predictions for 2022. It's sought after people wait for it each year and it's good to be revealed on January 5, 3 o'clock central. You can register for that webinars no cost to it across more again across more Bob, thanks for being with us. Thank you God bless you too hard. Let's head back to the phone today Suzies in my hometown, Fort Lauderdale, Florida, Susie, how can I help you 6566 Chris Moran he works for a major company.

He has no plans of retiring time. We had a PPO group health plan and he said we don't have to sign up for Medicare, he understands the Connecticut timing.

Eventually, the price of going out so I'm not really sure if we just ignore sign up for Medicare since she got this in a regular group group plan yes well you you have an enrollment for Medicare for three months before and after the month of your 65th birthday. So total of seven months, and when you enroll.

It's highly advisable to sign up for the part D, which is the prescription drug coverage that you know is a part of that if you don't enroll in part D, you may have to pay a permanent monthly penalty.

Once you reach your 65th birthday. You can then also enroll in the private part C, Medicare advantage, and you'll have to pay those premiums out of pocket until you begin receiving Social Security benefits. At that point I'll just take that out of your monthly Social Security check.

So your death again want to have a plan for that and make sure that you're ready to jump in when that time comes. So that that doesn't catch you offguard, Susie. We appreciate your call today and listen all the best to him.

It sounds like he has a plan to work for a long time but yell as he moves forward. I think knowing how he's going to approach the healthcare side will be a big benefit to them and thanks for your call. John's in Schaumburg Illinois John how can I help you today. We have adapted we just bought a house where you are, we paid 40%, but we still owe to do, how about 120 Dahlgren that we sold our old home got the same amount of processes right now we are wondering if they have the cash you know around 120 Dahlgren sitting the bank were wondering if we should.

All the new house all and the dog the mortgage right now we have is 2.875% is not is not that the current 220 Dahlgren and what you have in the bank equal among okay yeah yeah and tell me about your other assets are you all are. Have you been contributing to retirement plans and saving and investing. Yes we we have retirement found. We have account yeah not bad not bad at all that we have is to feel like you're on track with your retirement savings. Apart from this 220,000 from the proceeds of this other property right right.

We are not counting on the 2020 Dahlgren cash to leave on if you didn't pay off the house. What would you do with cars for a week. If you didn't pay off the mortgage with hundred 20,000 what you think you do with it. That's exactly why I am calling for. I we want to know which one I don't dated 2.875% mortgage rate is not too high is not covered hi, wondering if we use cash.

You all jumped in the stock market. For example, or by an auto rental and rental property. I think that's something you need to wrestle with me. My priority order would be number one note. Are you already saving. Apart from this in tax advantaged accounts and are you on track. Answer that was yes. Do you have an emergency fund.

If not, I definitely sure that up.

But beyond that, I think the next question is do you all have a conviction about being debt-free.

As you all talk and pray about it either you or your wife work together.

Do either of you really have a passion for being completely unencumbered and out of debt and if so I'd say even though that's a low interest rate and I would agree it is, I'd pay off the home and not look back and just enjoy the freedom that comes from being unencumbered. But if you say you know what we've got enough income to services mortgage. We don't mind taking in and taking some risk with it, but trying to grow it either through a properly diversified portfolio or through another rental property as long as you're willing to take that on that. I'd say go for it. I don't think there's a right or wrong decision.

Unless you have a conviction to be out of debt and if you do not go after that, with the full man, John. We appreciate your call to say thank you my team today. Jim Dan as well. Moneywise, love is a partnership radio moneywise afternoon to join us

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