Money Tips for the New Year

The holidays are over, the Christmas tree is shedding needles like nobody's business, and it's time to make some changes. Hi, I'm Rob West, and I'm talking about changes to improve your finances in the coming year, of course. It's time to end the procrastination, and I've got a list of money tips to help you get started. That's first today, then it's on to your calls at 800-525-7000.

That's 800-525-7000. This is MoneyWise Live, biblical wisdom for your financial decisions. Okay, so to hit the ground running, here are some things you'll 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 wherever 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 month's 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 tithe is just the training wheels for giving.

Preferfully consider giving more than last year because your church is feeling the inflation crunch too. 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 a will gives you the opportunity to name a legal guardian. The next tip 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 debt 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's 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 401k. You can contribute up to $20,500 to your 401k in 2022. If you don't have a 401k at work, set up a Roth IRA. You can contribute up to $6,000 in 2022, $7,000 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 in earnings and retirement tax-free. Now, 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 COVID.

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're used to doing your own 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 in alone. Well, that's our list of money tips for the new year. We hope you'll take advantage of them to improve your finances in the months ahead. Your calls are next, 800-525-7000. This is MoneyWise Live. We'll be right back. Welcome back to MoneyWise Live.

I'm Rob West. Great to have you along with us today as we mind 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, owe, and grow? Well, that's the only four things we can do with money. We want to apply God's truth to each of those.

Now, what are those again? Well, there's the money we live on, the money we give, the money we owe, namely debt and taxes, and then the money we grow. That's our savings and our investments.

And among each of those four, there's timeless wisdom in God's Word that we can apply to know how we move forward with confidence. Not that we're always going to have an abundance. We'll be in times of need and times of plenty. The key is no matter where God has you, you're living within His provision.

You're living with contentment, which gives you joy. And if we live within our means, meaning we have some margin, however little or much that is, that gives us the ability to live open handed and give generously. Well, 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've got some lines open. Here's the number, 800-525-7000.

That's 800-525-7000. We'll begin today with Steve and Hershey, PA. Steve, welcome to the broadcast. Go right ahead.

Yeah. Hi, Rob. Happy New Year.

Hi there. Same to you. And thanks for your ministry.

I'm a first-time caller. I've learned a lot from you over the years. I appreciate it. Well, thank you very much.

Yeah, I think I have some flawed logic, and I'm not sure what's flawed about it, so I need some help. And the topic is when to claim my Social Security. I retired last Friday. I literally retired last Friday after 33 years at the same company. And I turned 65 in December as well. So my full retirement age is 66 years and four months. Now, I plan on waiting to claim my Social Security based on what I've heard and from you and other people, as I do have sufficient 401K funds to live on. But I'm still wrestling with the decision because if I claim now, I'd probably be 65 in four months until I get it. So we're talking about a one-year difference. So if I wait for full retirement age of 66 years and four months, I get $2,300 more. So at first glance, it makes sense to wait, right, that extra $2,300. But here's what I'm wrestling with, and it's probably flawed logic.

I'm thinking that the approximately $32,000 I have to pull out to carve that one-year expense is better off being part of and working within a larger portfolio, and that the $2,300 extra I get for waiting might be overstated, and it might take longer to get it back than just doing the straight math. So that's from kind of struggling around. I think my logic is flawed. I need some help to try to tell me why.

Yeah, no, very good. Well, I appreciate the question and congratulations on your new retirement. Tell me, what are you most looking forward to in this next season? I'm not retiring from life. I'm moving on to do more with my family, more with the church. It's been 33 years of hard work, and I want to maybe get a part-time job. I haven't thought about that yet, but I'm going through the transition now, Rob.

Yeah, sure, and I would give some careful thought to what God has for you in this season, but it sounds like you're already thinking through that with some 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 year out of your 401k? Yeah, once I – if I claim now I get around roughly $30,000 a year, and if I wait, it'd be another $2,300. So I figure my first year living off my 401k or my IRA – I'll transition to an IRA – I'm going to, I figure, probably kind of replace that. What I'm not getting in Social Security I would, in essence, pull out. So – and maybe my logic is flawed there too, but I'm thinking the one year I'm not getting Social Security, I'm covering that with my 401k.

Yeah, no, and that's good thinking. 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, year 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 year one worth of collections and so you're going to 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 401k moving forward? And with the modest growth estimates, we're thinking we'll see in the next couple of years because some of the headwinds that we have, namely inflation and overvaluations on many of these companies after a red hot stock market has kind of pushed us up to some pretty high levels. The question would be what are you going to do with that same money in the 401k?

You're certainly not going to get a guaranteed 8%. So, I think that's the opportunity you have. 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 $2,300 or so a year that you're going to be bringing in for the rest of your life, if you wait, could really pay off much further down the road than, you know, you going ahead and collecting even though, at that point, you would have to draw from the 401k for year one by waiting. Does that make sense though? It makes total sense, Rob. In fact, what you just explained to me is what I've been thinking all along.

But now I guess reality sets in now. I'm not getting a paycheck anymore. So I'm kind of rethinking my original strategy, but now you have me sort of back on track.

Like when I first called, I said I think my logic is flawed. And I think I'm just thinking more and more about what could that 32 grand do within the 401k. But you kind of get me back on track. And I think, especially if they get a part time job to kind of offset the 32,000, then I think long term wise, as long as I live, you know, live long enough, which I have good health and just know, you know, bad news on the horizon as far as my health goes. So I should live long enough to hopefully use that extra $2,300 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. If the Lord calls you home much sooner, then this is really a non-issue anyway. So I think if you can go into it with that mindset of, you know what, yes, I'm pulling some money out of the 401k, but the 401k now that I'm in retirement and I'm going 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 the best course of action long term, and of course, we don't know, what we don't know only the Lord does, but 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. Okay, I do agree and I knew I'd call and get some good advice and that's exactly what I got. So thank you so much, Rob. 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. Eight hundred five, two, five, seven thousand.

That's eight hundred five, two, five, seven thousand. We'd love to hear from you. Whatever's on your mind today when we come back from this next break, we'll dive into whatever you have for us. Is it savings or investing, perhaps giving or maybe that pesky credit score, whatever you're dealing with?

Give us a call. Eight hundred five, two, five, seven thousand. This is MoneyWise Live, where we recognize God owns it all. We're stewards.

Therefore, money is a tool to accomplish his purposes. Let's make sure we're spending it in a way that aligns with what's most important to us. We'll be right back. Stay with us. Thanks for joining us today on MoneyWise Live here on Moody Radio. Delighted to have you along with us today. The phone calls are stacked up, so let's get right back to them.

In Hermitage, Tennessee is Marcus. Go right ahead. Yes, sir.

Thank you for your service and I do appreciate you and your team. My question is, because I do know you have quite a few other calls, is my car was totaled out and so his insurance company has gifted me with a check of about six thousand dollars. I was wondering, should I purchase a new car? My car is. And then you use that as as a cash car where I don't have the car payment and just do what I did previously and just maintaining myself outside of insurance and just regular where in turn it's all on me. Or should I buy a brand new car like a 2022 or 2021 with the dealership warranty? But then I would re restart having to pay on another car payment.

Yeah, yeah. Or maybe there's an option right there in the middle, Marcus, which is to take the six thousand and put it down toward a newer used car where you've missed some of the significant depreciation that happens in the first year, certainly the first twenty four 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. If it's well maintained, you know, cars these days are running at least one hundred thousand miles, hopefully two hundred and thousand or more.

We got two hundred and fifty thousand out of our last car that we turned in. Here's the goal. Long term, Marcus, you want to own this car free and clear. And I know you recognize that.

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 we're in an interesting period where 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 used. So you need to look at both options. But you've got to start with your budget and say, OK, how much can I add in the way of a monthly payment to my budget and still meet the obligations that I have, still 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, then I would say, let's find the very best car for $6,000 you can where 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 problematic. And the rule of thumb there is 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're probably putting too much into this car and we'd be better off with a more reliable car where we're paying into it.

So I think you've got to start with your budget. You've got to 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 we're funding the next car. And the question is, if you can't afford to do something to get something that's a little newer, a little more reliable than perhaps that $6,000 car would be that you'd own free and clear, is that a newer used car or is it a brand new car?

And I'm thinking even with some of these elevated prices, it's probably a newer used car that's three or four years old where you get it checked out and you plan to drive it for a long time, get it paid off as quick as you can, and then keep making that payment to yourself. Does all that make sense? It kind of does until you said it about where I can make changes in my budget because currently I live fairly comfortably. I'm a single guy. I don't have any other obligations, but I do own my house in about three years.

So I'm going down for that road. Um, and I have my student loans, which is considerable. The two, my biggest two bills are my, um, my student loans, which is about 88 and my house, which is about three 50. Um, and so those two things, this is why I was so concerned because my, the average car payment I was looking at was about two 50, maybe two 50, $300 a month, which I said, I could, if I scaled back some, some of our other projects, I could do that, but they were projected to make it even longer. So my issue was I could have a cash car now and then like own it and then be able to stay on course. So when I'm in my later sixties, I don't have as many issues in, or I could pay this car and get a newer car with the tax credit and then kind of pay it down the next two or three years. But then that would mean that I would push my other dates back. So I don't know.

Yes. Well, and that is the dilemma. And I think the key is with $6,000, what kind of car, what kind of vehicle would you be looking at and can you, you know, 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 maintenance standpoint at $6,000?

It's going to be tough. I'm not saying you can't do it. And that's where I said perhaps the second option is to 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 a year at the most. So now you've got something that's paid for, that's a little more reliable. You haven't extended your payoff on your other debts too far out, but you're not finding yourself back in the shop every other month spending a lot of money beyond what you'd like on that $6,000 car.

Do you follow? Yes, I do appreciate it. So I'll probably go get a pre-owned car.

My other parents and I have some other counselors that I've spoken with, but they're at work at the moment and I just got this. So I'm going to ask you that for your point of view, but thank you very much. You're very welcome. Yeah. Make sure you make it a matter of prayer and do your homework before you settle on that car that's the right one for you. And if you can find one, maybe the Lord brings one that's $6,000. Great. That'd be amazing.

But if you can't, or you're concerned about the upkeep, then perhaps spending a few more thousand to get a newer used car is the way to go. Marcus, God bless you. We appreciate your call today. Much more just around the corner on MoneyWise Live. Stay with us. Thanks for joining us on MoneyWise Live. I'm Rob West, your host.

Glad to have you along with us today. This is biblical wisdom for your financial decisions. Hey, as you get started in a new year, what a great time to get yourself set up on a spending plan. And 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 if you want to navigate on the web, you can go to app.moneywise.org. You can set up your spending plan. You can download your transactions. You can use a digital envelope system or a 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 manage money?

You want to be more directional and hands-off? Great. We've got a system for you.

How about hands-on and detailed? Well, we've got a system for that as well and one in between. So just head over to app.moneywise.org.

Download the MoneyWise app and you can get started today. All right, let's head back to the phones. Paula's in Naples, Florida. Hi, Paula. How can I help you? Oh, hello. Thank you for taking my call.

Sure. My question is about capital gains tax on my mom's home and she's now into her 90s and beginning dementia. Not too bad, thank God, but you know, she's getting up there. And so my question is, my dad passed away seven years ago. There's three children, including myself. If we decide or if she, you know, at this point decides that it's best. Well, we lost you, I think. Paula, are you still there? Okay, I think we, oh, there you are.

We lost you just for a second. So your dad passed away and you're wondering about your mom and the home, is that right? Right.

Seven years ago, my dad passed away. The title is still, the home's title is still under both their names. But at this point, she decides to sell the home. She has about an increase of about 600,000 on the home from what they purchased at 30 years ago. So my question is, is she going to be able to take the 500 credit for both of them on that capital tax deduction?

Can she do that or is it just the 250 for her? Yeah, you know, it's always best in these situations, Paul, to consult either a tax attorney or a 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 a half a million dollars of capital gains exemption. So what I would do is take the deed to a tax professional to have this sorted out. 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 her to get a tax bill down the road with penalties and interest and that kind of thing. So I think it's going to come down to how it was legally titled, how the estate was handled. But at the very least, if she's not entitled to the full half a million dollars, it'll 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 WMBW. Sam, go right ahead. Hi, we just sold our house and we were trying to go debt free and we also have some revolving debt and car debt and signature loan debt. Okay. And we don't know what to do first. Yeah. Tell me what your plan is from a housing standpoint. Are you looking to buy something else right away? We are.

We want to downsize and possibly build a tiny home. Okay. Nice. So what was the proceeds of the home sale? Two hundred thousand. All right. And what do 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 $5,000 in medical. Okay.

All right. So let's see, we're talking 56,000 plus the medical, so about 61,000. So if you had knocked everything out, you'd still have enough to take care of 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 the emergency fund and we'd also like to donate 10,000 probably. Yeah. So it 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 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 a housing standpoint. I love the fact that you'd 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 we're not treating the symptom and there's an underlying issue that's not being addressed. So namely that 14,000 in revolving debt, what was that from? Is it consumptive lifestyle?

Is it overspending? What is it that was there and are we going to be in a position and certainly without having a mortgage payment and all of these other debt payments, it's going to give you a lot more margin. So I would imagine you'll be able to do this but are you going to be able to live within your means and make sure that we are able to continue to add to that emergency fund, continue to give as you all want to and save for the future without 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, then I'd say you can accomplish all of these goals, funding your emergency savings, right-sizing your lifestyle and your spending and being completely out of debt which will give you a great position to be in in terms of a flexibility standpoint. So I'm on board with this plan if that's the conviction that you all have. That's great, yes. And that was from previous 2021, not in 2021. So we were good for a year. You mean where the debt came from?

Yes, it was before 2021. I see. Okay. All right. Very good.

Yeah. So you've demonstrated even with these debt payments, you can live within your means and obviously this would put you in an even stronger position. So Sam, I like the direction you all are headed.

I think you all are going to feel a lot better knowing that everything is paid off. You guys can live the way the Lord has called you to. And as my friend Ron Blue says, it's all about being able to live or die, give or go. If God calls you home, you're ready. If He calls you to stay here, you can live within His provision. We can give as the Lord leads and if He directs us to go, whether that's down the street or halfway across the world, we're able to do that as well.

That means we're living open-handed, able to respond to the leading of the Holy Spirit. And I think you guys are going to be in a great spot. We appreciate your call today.

We're going to take a quick break. When we come back, Bob Doll, Chief Investment Officer of Crossmark Global Investments will be here to give us an update on 2022 from a market standpoint. That and more around the corner. Welcome back to MoneyWise Live, biblical wisdom for your financial decisions. We'll head back to the phones in just a moment, but it's Monday and it's a great time to be joined by Bob Doll, our good friend, Chief Investment Officer at Crossmark Global Investments. Because with the new year, we're all wondering where are we headed in the stock market?

And it seems like now that's a topic that has been on a lot of folks minds given the recent volatility. Bob, happy new year. And to you, my friend.

Great to have you with us. I know in the coming weeks, you'll be able to give us the 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, but we're going to 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 tug of war between earnings tailwinds and valuation headwinds.

Explain that. Yeah, so 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 10th of 1% in yield.

That's the kind of thing you see over a month, maybe not a day. So the inflation pressures that we're witnessing, the fact that the Fed is likely to start raising rates all works against the valuation on stocks. PE ratios don't go up in that kind of environment and often come down a bit. That's the bad news. The good news is the economy is rip roaring. Earnings are likely to be fantastic.

And that's what drives stock prices up. So you're going to have these two countervailing forces. And my guess is that's going to create some more volatility. Rob, I think 2022 will be a more volatile year than 2021 as this tug of war plays out. Yeah.

And 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 going to be a bit mixed, huh?

Yeah, I think so. I mean, look, earnings will not grow as fast in 2022 as they did in 2021, nor will the surprises likely be anything like we saw in 2021. To reflect back, in 2021, earnings versus expectations were a record gap. Corporate America, through revenue growth and better profit margins delivered incredibly good earnings versus expectations. We'll 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, we're likely to see both of those become less favorable.

And that comes back to that tug of war we started with. Yeah. Bob, 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 has been rip-roaring the last couple of years. And today, Apple became the first U.S. company to reach a $3 trillion market cap.

That's incredible. Do you think we're going to see this narrow market moving forward or will it broaden a bit? I think it actually will broaden a bit. Part of the problem in the second half of last year was that the average stock kind of went nowhere. At one point in early December before the year-end rally, the U.S. stock market was up a little more than 20 percent, but the average stock from its high was down over 25 percent. What that tells you is the average stock is not participating.

It's just kind of the big generals that have been working well. I think with the economy doing well and value stocks likely to be growth stocks, we're probably going to see some broadening, but not back to the old highs, 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 a money manager or a fund manager as opposed to just buying the indexes?

I think that's right. It's obviously self-serving for me to answer the question that way. But if we are an environment where those big, gigantic stocks, if I can use that phrase, don't do quite as well. For example, big up day in the stock market today, but Microsoft was down. I think we're going to see a lot of those sorts of days, which means that if you're adroit 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 than last year and the last few years. Sure.

Bob, last question. We've 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. The more and more people I talk to, whether they're people of faith or not people of faith, are saying, you know, I think lining up my investments with my life, with my values probably has a lot of merit.

Can you help me do that? I think we're going to see more and more of that. And I encourage your listeners to do that.

Many of them probably have already, Rob, but I think it's a key feature to living a complete and integrated life. Very good. Well, Bob, happy new year to you. And 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 going to be revealed on January 5th at three o'clock Central. You can register for that webinar. There's no cost to it at Crossmarkglobal.com.

Again, Crossmarkglobal.com. Bob, thanks for being with us. Thank you. God bless. All right. You too. All right. Let's head back to the phones today. Susie's in my hometown, Fort Lauderdale, Florida. Susie, how can I help you?

Hi, thank you for taking my call. I'm 65. My husband will be 66 this month. He works for a major company. He has no plans of retiring anytime soon. We have a PPO group health plan and he said we don't have to sign up for Medicare from what he understands. But then other people tell me eventually the price will keep going up. So I'm not really sure if we just ignore signing up for Medicare since he's got this regular group plan.

Yes. Well, you have an enrollment for Medicare of three months before and after the month of your 65th birthday. So a 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 is a part of that. If you don't enroll in Part D, you may have to pay a permanent monthly penalty. But 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, they'll just take that out of your monthly Social Security check. So you're definitely going to 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 off guard, 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 as he moves forward, I think knowing how he's going to approach the healthcare side will be a big benefit to him. And thanks for your call.

John's in Schaumburg, Illinois. John, how can I help you today? Yes, we have a debt. We just bought a house. We paid down like 30-40%, but we still owe the new house about $220,000. Then we sold our old home, got the same amount of proceeds. And right now, we are wondering if we have that cash, you know, around $220,000 sitting in the bank. We're wondering if we should pay it all to the new house off. And the mortgage right now we have is 2.875%.

It's not bad. Yeah. What do you owe on that property? $220,000. And what do you have in the bank? Equal amount. Equal amount. Okay.

All right. And tell me about your other assets. Are you all or have you been contributing to retirement plans and saving and investing? Yes, we have retirement fund. We have account. Yeah, not bad.

Not bad at all. So you 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 $220,000 cash to live on it. And if you didn't pay off the house, what would you do with it? Say that again, if we didn't. If you didn't pay off the mortgage with the $220,000, what do you think you do with it?

That's exactly what I am calling for. We want to know which one is, I don't know, the 2.875% mortgage rate is not too high, is not terribly high. So we're wondering if we use cash, you know, jump in the stock market, for example, or buy another rental property, that kind of thing.

I think that's something you need to wrestle with. I mean, my priority order would be number one, you know, are you already saving apart from this in tax advantaged accounts? And are you on track? The answer to 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? You know, as you all talk and pray about it, either you or your wife or 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 service this mortgage, we don't mind taking it 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, then 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, then I'd go after that with a full abandon. John, we appreciate your call today. God bless you, my friend. I want to say thank you to my team today, Jim, Amy, and Dan. Thank you for being here as well.

MoneyWise Live is a partnership between Moody Radio and MoneyWise Media. Have a great afternoon. Come back and join us tomorrow. We'll see you then. Bye-bye.