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Your Retirement Income

MoneyWise / Rob West and Steve Moore
The Truth Network Radio
January 27, 2022 5:06 pm

Your Retirement Income

MoneyWise / Rob West and Steve Moore

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January 27, 2022 5:06 pm

Millions of American workers plan to retire this year, but many wonder if they’ll have enough to stay retired. On today's MoneyWise Live, host Rob West will explain how much income the average retiree needs, and he’ll share some steps you can take to trim your retirement budget. Then he’ll answer your calls and questions on various financial topics. 

See omnystudio.com/listener for privacy information.

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Millions of American workers plan to retire this year. Many wonder if he'll have enough to stay retired farmer was inflation and interest rates. The stock market and the economy in general.

All can have an impact on retirement planning. How much does the average retiree need the little talk about that first today that it's all your calls at 800-525-7000 800-525-7000.

This is money was not a waste of your financial so speak and after you stop working, you can live comfortably on 80% of your pre-retirement income. Financial planners arrived at that figure for a number of reasons. Once you retire you will no longer be putting 10% of your income into your retirement account and search are no longer earning a salary you won't be paying 7.65% of it in Social Security and Medicare taxes. You will no longer have work-related expenses like travel and clothing and finally a portion of your retirement income will come from Social Security benefits, part of which are always tax-free. Okay so as I said the rule of thumb is that you need 80% of your pre-retirement income but a survey recent retirees by T. Rowe Price found they were living on only 66% of their final working salary and they reported being content granted those surveyed were described as relatively affluent, but the number is still somewhat surprising. How are they doing it well, it turns out that many of them saved more than 10% of their income during their working years that not only increase the value of their portfolios, it also trained them to watch their spending and stick to a budget. Another huge factor was making it a priority to pay off their mortgage before retiring, eliminating what is usually the biggest household expense. Finally, their kids are grown and left a household and become financially independent.

In addition to that successful retirees have found any number of ways to either cut their living expenses or increase their income. Here are a few examples, some empty-nesters of looked around their unoccupied bedrooms and seemed dollar signs. There are services like roommates for boomers and silver nested that can help you rent out a room in your house.

Now COBIT has put a crimp on that idea for the time being, but as the pandemic eases it will become a more viable option for many retirees take to gardening as a way to get fresh air and spruce up the landscape.

It's not a big leap to put in a vegetable garden and everything you harvest reduces your grocery bill beans, tomatoes and cucumbers can be frozen while potatoes, onions and squash can be stored for several months, adding more vegetables to your diet is healthy and could lower your medical expenses as well.

And while you're working on healthy habits you can get rid of some unhealthy ones again to reduce medical costs, smoking and excessive alcohol consumption are major causes of health issues in the elderly replace those bad habits with healthy ones like staying fit and there are many free or low-cost fitness programs available for seniors you'll save money feel better and live longer by taking care of yourself.

Do you really need two cars. Once you retire you can save on insurance registration and repair costs by getting rid of one of them ridesharing if needed is a low-cost alternative to maintaining a second vehicle.

You should also ask yourself at this stage of life.

Do you really need life insurance. It's supposed to replace lost income. If you should die, but if the kids are grown and out of the house. You no longer need to provide for them. And now that the house is paid for. Do you plan to continue living there as long as possible. Most retirees want to stay in their homes and it's the cheapest place you can live far cheaper than moving to an assisted living facility or nursing home, you're more likely to be able to stay in your home. If you make it safe and accessible as you age carpeting reduces the chances of injury from falls, installing grab handles and mats and bathrooms is also a good idea curb was showers and walk-in bathtubs can also extend the time you're able to care for yourself and you ain't by far the most important thing you can do to keep living at home is to exercise staying fit and limber is a prerequisite for taking care of yourself and staying out of the nursing home is are some ideas that can help you retire comfortably and probably on far less than 80% of your working salary. But here's the key. You have to be diligent in saving for the future, which means if you're not putting something away for retirement.

Start right now. We recommend 10 to 15% of your income going into long-term retirement savings are here because her next. 800-525-7000 800-525-7000. This is moneywise live right.

Thanks for joining us on moneywise live biblical wisdom for your financial decisions. Just a mother will be taking your calls and questions on anything financial, here's the number 800-525-7000 800-525-7000. We just had a call or a moment ago looking for estate planners who operate from a biblical perspective and really take that opportunity to talk about the CK a designation. We recommend often the certified kingdom advisor designation. It's the only industry accepted designation in the financial services industry around biblical professional financial advice. That is, men and women who have met the high bar in terms of training and competency regulatory reviews pastoring client references and specialized training to bring a biblical worldview to their financial decision-making.

It's why that's the designation we trust in you can find the CK in your area.

Just visit our website moneywise.org and click find the CK by the way, if you're looking for a godly estate planning attorney. Although we do have some.

There's not a lot of CK's in that specialty. So I would either do one of two things. Either contact the certified kingdom advisor in your area and ask for a referral to an estate planning attorney they'll all have one that they use and make sure you let them know that you want your biblical values are reflected in your estate planning or call your church and ask if there's somebody in leadership there. That's also an estate planning attorney that could be another great resource. I will head to the phones now 800 525 7000s, and I recall you to begin today in Moline, Illinois hi Kelly, how can I help you.

Thank you. That you have your purity.

Mine was very tall and he is large and not. I called you get downrange.

I took my EQ ticket right before 66 not be penalized whenever you like a couple months ahead of time anyway so when I called to get that when they didn't do it automatically because I took my EQ. They took out 30 and I'd only I only get 30% of keepers that and I was sorry I here call about your child. You never mentioned that I'm wondering what you know, short shorts, well, you your full spouse's benefit is up to one half the amount your spouse is entitled to their full retirement age. If you choose to begin receiving spouse's benefits before you reach full retirement age or benefit amount would be permanently reduced. Now that separate and aside from your own benefit and you can choose from, whichever is higher as to which benefit you will collect but at any point you elect to take either your spousal benefit or your own benefit.

Early it will be permanently reduced based on your age and that age and proximity to full retirement age. Does that make sense So I took my nine it was going to be.

I don't get to keep percent of his regardless, I mean I really know mine was way behind in his vest that I only get 30, 30% hit percent no just append on when you claim that benefit so if you took it at 62 will be reduced by about 35% and that's permanent at any point though you would be able to make the switch. So if you took your own benefit. Early that would be permitted to reduce put them at some point you could switch to your spousal benefits or vice versa. You can't take both you would take whichever is the higher of the two. And whenever you begin claiming them there permanently reduced from that point. What I mean. I did take mine and then I went to 69 now. I called last year at 68 to get switch to the 50% of his I only get 35% of his because I took my Netflix queue and I have friends that are having that experience so you think you do is I would contact the Social Security office know if if if you start the payments at full retirement age or older. You should get the full benefit of 50% or less of their some aspect of this that I'm missing. Also, perhaps your tribe was somebody else. You can contact to make a virtual visit is to say.gov but I would dive into that a little deeper and see make sure you're getting the correct information as to how much of your spouse's benefit you're eligible. Given that you've not claimed it previously and certainly not prior to full retirement age so something doesn't sound quite right. I'd look into that a little bit further. Kelly and be sure to check back with us and let us know what you find. We appreciate your call today hundred 525 7000s another call we got to the several lines open today, let's head to Lakeland, Florida hi Maria, thanks for going out to help my working or not the profit I invested in default. I want account with a traditional IRA and at this point. My fault. The company match. Should I go over to the IRA and have it on the one you know one account, so you have an IRA already. In addition to the 403B.

Okay, yeah, you certainly could do that. How much do you have in each of those accounts roughly 1 and be IRA.

I highly about 90 okay yes he obviously got a significant amount of money that you say. I think it's actually a good idea Maria because at this point, I'd rather you have a little bit more investment oversight than you perhaps have in the 43B where you're just picking from the mutual funds. Not that you can't do that and do that. Well, there's plenty of options. I'm assuming that for 3 PM.

I'm sure you're giving careful thought to which ones you're in. I would just love with you.

Have 1/2 $1 million here for somebody with some professional expertise and maybe a little bit more attention here to oversee all of that and do it in a way that's consistent with your goals and objectives not taking any unnecessary risk, especially with us heading into and were already there.

Chop your market is little more volatility associated with it and giving your proximity to retirement.

Whether you plan to go back to work or not you want to make sure you you're only taking the appropriate amount of risk there. So I think rolling that out into a an IRA does a few things for you. Number one, it's not a taxable event number two, you're no longer paying the fees that you have no inside that for 3B that you don't really see but there there. She had more control over the fee and cost structure number three you open up the investment universe so you know that horse with blinders of blinders come off now, any stock, bond, mutual fund exchange traded fund even real estate through a self-directed IRA is available. Not that you do that, necessarily, but the ideas that really any investment is now in play and how much involvement you want to have, or whether you want to bring an advisor to the table. All of those things can really be solved for quite effectively inside the IRA so that would be my recommendation if you don't have an advisor. Currently Maria visit our website and perhaps see if you can find two or three certified kingdom advisors there in Lakeland to interview C, which is the best fit to understand their cost structure how they get paid where you fit in their overall lineup of clients who would be servicing the account. All those things that find someone who's a good fit for you.

We appreciate your call to 800-5257. Thanks for joining us today in my last line along with this figure calls and questions on anything financial would love to hear from you today hundred 525-7000 is the number to call but sent right back to the phones that see Felipe is in Florida, go right ahead. Great, thank you for calling Rob my wife and I are young couple from Florida about three euros down and then I will focus on paying out debt. Right now we are at a point where we are looking to purchase a house and we managed to save $10,000 so we wanted to know what decisions to go for that decision. When a small apartment or condo or should we wait to see okay so tell me how much you're looking to spend what have you been targeting in terms of the purchase price out anything on the 21 80,230 okay so let's call it 200,000 summer right there in the middle and how much of you saved all quicker than before that you now we just scrape the other tells me you're really raining in your lifestyle spending which means referring up margin you had been focused on both saving and debt reduction. Now that that's gone to be able to accelerate that savings even quicker.

And that's those are all really good signs.

Felipe, you got 10,000, I'd really love for you to have 20,000 and I realize that's going to delay this purchase. But that's gonna put you in a home with 20% equity. It may in this interim. Also, it'll be a situation where the housing market settles a little bit right now it's just really a sellers market where there's bidding wars going on because of the lack of inventory people are paying prices in other tenant 20 and sometimes even more than that percent higher than the asking price inside the glove for a little bit of that to come to settle out of the system. The flipside is that interest rates are headed up so were to pay a little bit more for interest down the road you talk in a year or two from now, but it's still good to be historically speaking at historic lows, even if it's a point higher than it is today, which I don't think it will be in the next year. How much would you be able to put aside every month.

If you delay this and really prioritized, increasing your down payment. All good hundred 59 month okay yes that's great.

So I think the goal would be to get up to 20,000 now if you were to do that. Do you have in addition to this 10,000 emergency funders.

This all of your savings.

Okay, then, are you building that separately risk all in one account okay but today the 10,000 is is everything smooth emergency and down payment okay and how stable is your job situation. My wife will. Okay well I think what I love for you to do.

Felipe is to have 20,000 down.

Plus, you know, at least a months worth of expenses in the bank that would be my goal.

And I say 20,000 based on a unit of the the purchase by well actually if you're talking 200,000 so I'm not sure what I'm thinking here. It would actually 40,000 present.

I really like for you have 20% down so it's going to take you a little bit longer to get to where I'd like you to go, but for you to go into a house with just you know 5%.

I just wouldn't feel comfortable number one you be praying paying private mortgage insurance number two if the housing market were to take a dip.

You guys could find yourself upside down and evenly apply plan to be there for some time.

You know, it just could put you in a really tight spot. So I'm going to say you know at this point is much as I love for you to get into a home and not be renting anymore.

I think we just hit the pause button and and continue to save the good news is you guys have demonstrated you're able to do it. You're putting away a good bit a month.

You know you be putting away 18,000 over the next year and who knows if you guys really dial into this now maybe you can do even more than that, but I think I would wait until you can put 20% down and make sure that the mortgage payment that comes with whatever mortgage you take is not more than 25 that the most 30% of your take-home pay soap Felipe. We appreciate you checking in with us. Thanks for listening calling today my friend, shipped to Mystic Michigan. Tracy, thank you for going.

How can I help thinking I call my house off lab. I think about retiring at 62 years, I have no debt and I have about 20,000 for emergency fund, but I have a 17-year-old car.

So do I take the money that I'm no longer using for house payment, which I already my retirement up 15% from nine my pay in any magic that he match three.

Should I keep the money that like my house at money, put it in the bank for a new car so I put it in something that's really going to collect some sort of interest would that be how far away from retirement. Did you say you are about to hear David 16. April okay and what will your retirement income consist of other than Social Security when you claim it down the road. Well I can get a part-time job. Okay, my current Harmon account at work and you mention you been in nine notes. 15. What is that what you put away in the must have saved up in your retirement account made about 135,000 35,000 yeah so I mean obviously if you return before taking Social Security. I would look to that hundred 35,000. What's a gross 250,000 between now and retirement you would be looking at probably 6000 a year from that some 500 a month so I think you either delaying retirement or as you said, working part time.

You know you could look at the retirement account is as a source of income in terms of car I would say yeah just redirect what you have been putting toward the house that all toward the car. Hello. I will talk more off the air. This is moneywise live. Thanks for joining us today and moneywise live biblical wisdom for your financial decisions were so glad you're along with us today as we apply God's word to your financial decisions and choices as we think about managing God's money and it's all his rights on 24 one. Earth is the Lords and everything in it. So that means were stewards and money is a tool to accomplish God's purposes know as we think about all the uses of money.

There's really only four categories.

There's the money we live on the money we give the money we owe and that really would be debt and taxes and then the money would grow. That's her savings both for the short-term, like your emergency fund or the long-term like your investments, but among that live give Owen grow. There's principles we pull out of God's word and apply to each of those but at the end of the day. We want to live as the apostle Paul said with contentment, which is learned by the way Ms. were willing to live within God's provision. Not outside of it through the use of debt we live openhanded Lisa we can follow the leading of the Lord and give just like the early church did this morning. In acts 11. I was reading about the church in Antioch that sent quickly money back when the prophecy was given about the famine to the more established church in Jerusalem. They were so quick to give in support that need because they had the ability to do so when we live that way. In order our finances.

That way living simply in living below our means. We have the ability to respond to needs when they're presented well that's I think God's heart and his design for how we should be as stewards of his money and let's do that together they would get some lines open.

What are your questions on saving or giving or investing or spending plans. Whatever it might be would love to hear from you the number to call is 800-525-7000. We got about four lines open, Zion, Illinois hi Charlie can help you today.

I doing great.

Thanks. Will want to get out the rest of it is tied up in my average start at things the government and I have like 58,000 American. So my question is should I put this all together so you have this old 401(k), but what else do you have an IRA were with other type retirement account. You have TSP care. Okay so you have the TSP currently what you can do anything with that because you're still with the government sees his knee doing you pick the funds inside the TSP that are most consistent with your agent objectives, but do you have anything else other than the old 401(k) to start with an IRA. Well, I like the TSP account and you can do you can put more away in the TSP you cheer than you can in the IRA, you can hit that ceiling pretty quickly at that $7000. You mentioned you have 50,000 in your 401(k) and cash.

What else do you have in there.

What's the total balance in total. Yeah oh I see. So it's one individual stock yeah okay yes we we need to make a change on that because if you got 80,000 at the risk of one company are highly concentrated that's that's risky because that's that particular company. Whatever it is is as good as you may think they're doing it. They have about quarter something happens you know that stock could go down significantly and there's just too much risk there you not properly diversified. So I be looking to move that out and find an advisor that could take over management of that once you found that advisor. Here she would open an IRA in individual retirement accounts, and the 401(k) would be rolled in.

So it's not a taxable event. And at that point, any investment could be selected on your behalf. Based on your goals and objectives, but the 50,000 shouldn't be in cash cassettes losing purchasing power every month and 80,000 should be at the risk of one company.

They can also advise you on the appropriate fund mix from your TSP account to make sure that you're in the right investments that match your goals and objectives. But in terms of the go forward. How you should approach it. I would continue contributing to the TSP just making sure that you get some counsel on what investment mix you should be and so I think your next step.

Charlie is to find an advisor that you feel comfortable with either interview two or three a certified kingdom advisors in your area. You can find one when you had your website moneywise.or just click find ACK.

We appreciate your call. Louisville, Ohio, Daniel, thank you for going out to help. I all your question, I was wanting your opinion.

We had purchased on about seven years ago and I was on a 30 year mortgage interest rate was up 4.125 and we had paid down quite a bit and I was on schedule where you not pay it off actually about total of maybe 13 or 14 years we totally depend on that.

I refinanced and when the industry went on a 2.75 and I refinanced well actually right before we refinanced. We had made an extra bedroom because the been blessed with another child and delete started putting time to build on all and we have first we were just going to got it under roof right in and work on the elect on the plumbing right now and we are just using money that we saved up her artist extra money that we had left over and I refinanced a couple hi, we were we were thinking of you. The duration realized it would maybe take a few years to finish it but then when we refinanced. I thought well maybe I could just borrow borrow some. In addition to LD mortgage that we had all wrapped into the same refinanced and and then that will project sooner so I'm just wanting an affected what we did.

I haven't. I still have the check in over the extra part that were usually diction so I could go either way on it right at this point but I just wanting to know your opinion.

Okay so in the refi. Did you you said you did pull some money out you have the ability to yeah like I did. I would like for approximate 43,000 yet on our home and then I borrowed an additional $25,000 speed up the addition project. Not that is a 10 year loan that I got so much would make the point from when we purchased the house to the point we finished paying everything off the original mortgage including the amount I borrowed for the remodeling project would be about 16 years total and you said so that the total mortgage right now is about 68,000 is a right yes you 2.75 that's correct. Yeah, I think that makes a lot of sense to me.

This is really cheap money if you had already refinanced you hadn't factored this and I'd say don't touch it. Let's go get a home equity loan, not a line of credit the loan with a fixed interest rate just for this project. If you've Artie taken this money that helped you get this loan was that 43,000 was below what most lenders want to do for a new first mortgage using one 50,000 or more. It's a phenomenal interest rate and because you all are accelerating payoff. You know I would be comfortable with it so I think this is a good approach. Daniel stick with this plan okay. Thank God bless you.

This is moneywise live were applying God's word to your financial decisions and choices were to pause for a brief break we come back much more on the program. Thanks for tuning into moneywise live weekly wisdom email without today you didn't hear that. That means you don't have a free account moneywise.org so head over there now create your free account and then you won't miss another one of the theme of this was financial stress relief and I share my thoughts on how we can avoid stress in our financial lives, but we also have some great recommended reads how you set a financial finish line. You can read the Bible well and actually are not proof texting, especially when it comes to financial issues. We have some great podcasts there and are verse of the week, which is a great one. It's really the basis for everything we do here in moneywise.

Psalm 24.

One of the earth is the Lords and everything in the world and all who live in it and that is the pivotal truth that when we recognize God owns it all. He changes everything. Every spending decision because we are now managers of the King of Kings resources, which means we're looking to him to say Lord, would you have me to do. How should I handle your money again. We'd love for you to get this weekly wisdom email to send to our website. Create a free account moneywise.org piloted back to the phones.

Joe is in Cleveland Ohio. Enjoy understanding of a Social Security? Are you to Gregor and well.

My wife and get some Social Security benefits as part of the spousal benefit, but she doesn't have never earned enough credits to get her own Social Security. She's short, about 40 credits you short about 45 credits and she is a public pension I do and I have a limited but is able to get some for security based on credit. Yeah, that only applies to her own benefits.

Joe so she can claim spousal benefits, even if she has no credits at all so she could start receiving spousal benefits at age 62, but those benefits would be permanently reduced by about 1/3 for not waiting until her full retirement age. She waits till her full retirement age, whether that 66 or 67.

She's eligible for up to 50% of your Social Security benefits, but she's entitled to that whether she has any credits or not. Oh okay filter you called at fault and that's exactly right right right now are limited because of our public pension so shirt for example, my might.

I wiggle 70 in my posterior mouth is like about 600 so she applied for What that something she's approaching 70 as well yeah they'll tell her what she's entitled to. But I would have her go and check into that right away. There's no reason not to claim that benefits and that you can connect with SSA.gov to get more information so hopefully that's good news give you a little bit more in the monthly budget. We appreciate your call to Tyler, Chicago, Illinois.

How can help user my wife and I moved and were looking for a local church in the area and what do you think is the best way that we would honor God and be faithful to the Lord with dark ties and offerings rooted in a particular local church yeah you know I love this question. I would just say continue to give systematically so I wouldn't break that rhythm and I think there's something about giving the first and the best off of our increase to the Lord. I would savor and apply the principle of traumatized we should start with giving to our local church that's God's plan a in terms of the mechanics of that while you're in between churches. I would say you got a couple of options you can continue giving the tides, your current church while you're looking, you can give your weekly ties to whatever church are visiting would be another approach you could give your ties to other ministries until you land in a new church so I think any of those would work out between you and your wife in the Lord, but I would just say let's just continue giving faithfully and there's just something about exercising that giving muscle that I think is a good thing that love for you to not break, and you just start storing it upset make sense like it would be the same ticket history, even though that we believe is faithfully honoring God is there so much emphasis that Scripture is on supporting the local church. You think it would be supplemental to now you know if you have that conviction I would share that side. I'm not disputing that all that that that is God's intention that we start with are giving to the local church you look at Malachi would look at home number of places where that's modeled, then I would say follow that conviction and so that would limit your choices to either where you're currently if you remember somewhere, or perhaps you just take your weekly tied look at what's the provision this week of God's given us and what's the 10th of that and then write the check or make that the electronic gift to that particular church are visiting until you find out where the Lord is leading.

I think that would be a great approach, but I think in either case, you would continue giving systematically and the Lord will certainly honor that. I appreciate your call today Tyler.

Hope you guys find your new church home quickly. I converse Indiana hi Debra, how can help you. I am fully retired.

I really don't have any. My husband take care of all that. So at a pretty good lifestyle. I a long-term investment in bank stock which is doing very well. I don't plan on touching that for a very long time and I handle.

I had a stating that a short-term take care of anything that I might need for the next couple years I just received $20,000 back from an investment that I had and with the market being as volatile as it is right now.

I really don't know where I want to put that yes so are you looking for any kind of investment ideas or know where to allocate from a category standpoint to what your main question at this point, yeah, should I put it like in Tucson I could find more bank stock which is doing really well, but my investment I said that I'm putting all my eggs in one basket, but this particular bank stock does really well. I just not real happy. I mean I'm just field the market. I carry right now.

Sure well one thing you could do, you would be able to use the whole amount, but you could put in 10,000 of it is. Are you familiar with bonds no yeah yeah so essentially these are what are called inflation bonds.

So there pegged to inflation. Right now the pinned little more than 7% and is guaranteed by the US government, you know, I put in 10,000 a year. You can get 15,000 and if you put an additional 5000 as a part of a tax refund but you got a hold in at least a year and if you take it out in less than five years, you'd have a penalty of three months worth of interest.

But given that it's backed by the full faith and credit the United States government and get it given that it's so right now, with inflation elevated paying more than 7% essentially guaranteed you to find that anywhere else so I think that could be a great option for you.

Again I bonds are what they're called and you can get more information or a treasury direct.gov that's the government's website for the U.S. Treasury where you can buy electronic bonds and you could just read up on I bonds. I think that would be a great approach for you beyond that, I think you could invest in just a broad diversified index fund were you just taken a broad view of the market and as long as you long, long time horizon, the choppiness of the market in the near term wouldn't be of concern to me.

Let me just finish by saying a Debra I would even though that bank stock is done well I'm I would be a little concerned about you being so highly concentrated as your advisor mentioned it may have done great.

But if the financial sector becomes out-of-favor or that particular bank has a challenging quarter or problem you could see a real steep decline in the short period of time by not being diversified so I would just give tell you what to do. You need to make this call, but I would give careful consideration to diversifying if you're too highly concentrated. Hopefully that helps you appreciate your call today. Thanks for listening. WGN are Rob's in Indiana. Your to be our final color today Rob, how can I help Rob hear me okay yes earned a redhead question I got for you.

I'm coming up. I have a 20 year term life insurance policy that's coming up.

You know this, your word, you know law expiring young thing like you, okay you and currently me and my wife runner, mid 50s and my wife probably retiring in the next probably three years I got another fortified the just paid off or how you know our loan. We really don't have any debt you pay the you know I don't know enough to thoroughly meet term life insurance additional spirit. There is a point you know it really isn't dependent on agents based on need, because this is intended to offset a risk of upon the death of one family member there being a hardship placed on another dependent, including a spouse, so if your spouse is depending upon your income for the next four or five years in the saving that you're putting into your retirement account which are now unable to do in your debt. Your death then that's where the death benefit would be still important, potentially only you and you would know that maybe you don't need as much as you had previously because your house is paid off, but you may want to have something in so you could get a smaller 10 year term policy. If you're healthy and it's not too expensive where you know that amount would be paid to your spouse and perhaps vice versa. If you're counting on her income for the next couple years, but as soon as you reach retirement where you're no longer saving for retirement. You feel like your sense of essentially self-insured that I would just drop it. You cancel the policy and stop paying for it, but you would only know whether that's needed today.

Whether you need a few more years of that coverage. Does that make sense if the only thing I currently yeah I think that's the key is making sure number one is cost-effective and you may decide you know what we are we done as much as we need them and it doesn't make sense any longer that point you just let it go. We appreciate your call today.

Rob, thanks for tuning in to do it for us today. Moneywise, lives a partnership between Moody radio and moneywise media was a thank you to Eric Tidwell on phones Deb Solomon producing today. Amy Rios, our engineer, Mr. Jim Henley providing research.

Thank you for being here is welcome back to join us tomorrow season


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