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Future Job Insecurity

MoneyWise / Rob West and Steve Moore
The Truth Network Radio
May 19, 2022 5:00 pm

Future Job Insecurity

MoneyWise / Rob West and Steve Moore

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May 19, 2022 5:00 pm

Technology is advancing continually, and often we don’t even notice how that progress affects our everyday lives. But if technology were to eliminate our job—that’s something we’re certain to notice. On today's MoneyWise Live, host Rob West will share how some workers are facing future job insecurity because of developing technology. Then he’ll answer various financial questions from a biblical perspective. 

See omnystudio.com/listener for privacy information.

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How do you forgive a dead nap, particularly when he's your grandfather. My name is Brian don't post of the brand-new podcast called the grandfather effect. This podcast is five years in the making, contains interviews, ponderings, and wrestling with my family, faith in what forgiveness really looks like in the face of generational.

If you listen carefully you'll hear more than a story about my family, you hear a story about yours streaming out on the Moody radio app and anywhere you listen to podcasts. Today's version moneywise lives. Our phone lines are not Bill Gates once said the advance in technology is based on making it fit in so that you don't even really notice, so it's a part of everyday life by Rob West.

Well, that may be true for things like computer operating systems and smart phones where we often don't even notice technological advances, but if technology eliminates your job. You'll notice in planning about that first. Today we have some great questions lined up for you: today because we're pretty record this is moneywise live jobs and eliminate you'll get scads of lists about jobs, the technology might do away with in the years ahead. Some could be expected like male sorters and meter readers, but others are surprising and include air traffic controllers and even pilots. It's been said, there is no such thing as job security, but there is employment security.

That means there will always be work. The trick is to make yourself ready for it. It could also mean choosing a career that's less likely to be eliminated by technology.

These would include things like healthcare workers, software developers, specialized repair technicians and teachers and with today's employers desperate to find new workers. It's a great time to consider a career change. Employers are easing prerequisites and more willing to provide on-the-job training there far more likely now to consider hiring someone who's trying to switch over from another field making a career change is much more difficult when unemployment is high. So if you're thinking about a career change what your first step.

Well it's making sure you actually need or want to switch careers your current job might not be in danger of being automated and you might enjoy what you're doing. Just not where you're doing it so companies not careers might be a better move, but if you really don't like what you're doing. Start by making a detailed assessment of your skills and interests.

Take a career assessment. Many of them are offered online.

Your answers will generate a list of occupations where you're more likely to achieve success and satisfaction, job satisfaction is important, but through this entire process. You also have to keep earning potential in mind if going into a new career at entry level means temporarily less pay. Well you have to adjust your budget accordingly and again you want to choose something that's automation resistant.

Now that you have a list of new career possibilities. The next step is whittling them down. It could be a long list, but consider each possibility carefully and cross off those that aren't appealing to you with that complete, you now have a much shorter list with maybe five possibilities or so these are the occupations you want to start researching and try to keep an open mind start rounding up job descriptions for each of your remaining career possibilities.

You also want to look at education requirements will you have to go back to school.

If so for how long and how much will that cost one of the advancement opportunities and earning potential. And again pay attention to job outlook. Will there be fewer or more of those jobs in the future.

One of the best examples I can give you of why that's important is the job of pacemaker technician. They travel around to clinics and doctors offices and adjusted pacemakers when patients are having a problem with an aging population you think there is real job security in that profession, but the technology is advancing so rapidly that the industry will likely be doing most of that work remotely in the future, eliminating many of those positions so you don't want to switch to a new career that won't be around long after gathering all of that information. You'll probably eliminate a few more occupations maybe only have a few left.

Well, prioritize them, then take the one that best meets your needs and put an action plan in place to prepare for it.

Talk to employers and workers in that field to find out what's needed. It could involve going back to school or getting the necessary training some other way. Maybe an internship. Some of the skills you picked up from previous jobs may also apply to the new career.

So you may not have to start from scratch. This leads us to the most difficult part of changing careers, making a commitment to landing a job there. If you have to start at a lower level.

Be willing to do it if you can earn enough to still need your monthly obligations if it requires formal training you must have the discipline to pursue and obtain that training what you have in your ready for your career change and you can start applying for jobs in your new field universe to meditate on. During this process is Proverbs 16. Three.

Commit your work to the Lord in your plans establish. Be sure to talk to trusted friends and wise counselors along the way, I'm sure they'll give you some great tips and advice as you pursue this is a reminder that were not alive today, but we do have lots of coming up and the rest of the program stick around moneywise live we apply God's wisdom to your financial decisions.

Let me remind you moneywise and moneywise media is listener supported. That means we rely on your generous support to do what we do on the air each day and if you consider a gift which is certainly be grateful you can do so one time or become a moneywise patron that is a monthly supporter of the ministry.

If you just had to moneywise.org and click the donate button you can give online over the phone or find her mailing address to send a gift and again moneywise.org and click donate head back to the phones by the way our team is away from the studio today so don't: but we lined up some great questions in advance will head to St. Louis Missouri next Stanley thank you for your patience. Current Hetzer hello, some 22 years old. I'm getting married soon and all thing about getting a house not on a rent but the economy, doing bad in all the house prices are going crazy or not so was wondering if it's a good idea to wait and like a rent or something or dislike rent and rent an apartment sure like what's the best option to do yeah Stanley. I appreciate that question, because we certainly want you and your fianc to get started off right financially. When you all get married and I'm delighted that you thinking about this now. I can also appreciate your desire to own a home as opposed to renting. So you're sending money and making that payment in building some equity in something that you own and can ultimately own your Lord willing, free and clear, and I realize this will be a starter home and probably one of many that you own, but the timing is really key. And yes, it's a challenging market right now and yes mortgage rates are headed higher but the last thing I want you to do Stanley especially is a brand-new married couple would be to get overextended and try to get into the housing market before you're ready and find yourselves really squeezed financially. So because of that, I would really rents and delay this purchase until you can now put at least 20% down severe and abide hundred thousand dollar home, you have 20,000 ready to put down over and above your emergency fund of hopefully 3 to 6 months expenses were provided $200,000 home you have. You know you have 40,000 put down, and that's really going to ensure that even if the price of the home were to dip a little bit that you're never upside down and also want to make sure that that mortgage payment is not more than 25% of your take-home pay. So you got plenty left to deal with all your other expenses so you all can you know obviously cover your bills but also handle the discretionary expenses and no fun things like putting something away and starting a retirement account or paying off your student loans if you got in those types of things so give me a sense of where your ad just in terms of any savings that you put aside at this point so I would a couple different things in my investing account will right now it really loads around a grand but it goes like the breakeven point, then there'd be 18 ground, but I'd have to wait for their commenting like come back up to its own you know of March are terrible right now and then in savings I have between because of like help for my family and stuff. I have around like $36,000 and know what you will speak what would your budget be do you think when you are married per month.

How much would you be spending and expenses like probably wont like what does being 500 to 2000 and does that include your rent or mortgage, you okay I think that's can be challenging just to make sure that you put food on the table and put gas in the car and you know covering that rent or mortgage payment of its mortgage payment, and the utilities on top of that setting to keep for you is really to go back to that spending plan and just look at what is it gonna take for us to pay all of our bills and live within the income that you've got now do I see her in the notes that you make about 40,000 is at right around there okay and will she be working yeah okay so you can want to look at what your combined income will be and then after taxes and any other deductions that are coming out of that, like health insurance. That type of thing any debt payments hopefully don't have any debt but got include that in and after unit giving what you have left and then you out of that.

You gotta work on a budget that covers the rent of the mortgage plus all the other expenses and that's really critical. And so if you're spending let's say 2000 a month.

I'd love for you to have you know at least 6000 between six and 12,000 in emergency savings.

Let's say it's 12,000 that would mean that you you have about 24,000 left for the down payment on the house and yard that would be home about $100,000 so I think you know you could begin looking for a home, but based on where you will want to live and what you need for your starter home that may or may not be possible there in Missouri, but at least that gives you a starting point to say okay if we want to spend 100, we need 20,001 spent 200 we need 40,000.

And if you're not quite there yet. I'd probably delay that purchase until you're ready to make that down payment of 20%. Does that make sense and weekend away like and dislike getting apartment or something like that would help look like rent okay there you go yeah and I think the key would be for you all to really develop a plan that says okay here's what our budget looks like usual receiving four years. Our goal for not only our emergency savings which you got a great start with this 36,000 but here's our goal for the down payment on the house and then begin praying that as you get that put away that God will provide just the right house for you guys, but there's something to be said about waiting and working hard and then ultimately God providing and you all knowing that we didn't get overextended and you know we waited until we were ready to buy this house. We don't put ourselves in really a financial strain and also just really encourage you as a party or marital premarital counseling to really talk about finances. What you all think about lifestyle and how much you want to be giving in you who's good to be the bookkeeper and just all of those things you guys get ready for that. Lastly, you stand alike as I want to send you a book called money and marriage God's way that I want you guys to read together and Stanley.

I appreciate your call today sir.

God bless you to Ohio. Mary, thank you for calling. How can I help. I think my taking my call.

I a high-yield savings account last year with my late husband's life insurance money, who died last April last November that same year.

I prayerfully moved all but my emergency fund to investment account and Roth IRA are now questioning that I did the right thing with how much you know I'd locked with the current market in stock and I'm just I'm just wondering if I did the right thing and and she left it. I well I can understand the nine sites 2020. Mary and II know that that can be frustrating. How much did you get from the life insurance that you put to work. Yeah.

Oh, 123 into an investment part 2000 and you have my 401(k) rocked sorry Roth IRA for 7007 down this year. It is this money you need to live off of versus money that's can just stay invested for a long time, having my pay my darling all the time. Yeah I get it.

Well here and give you quick answer then we'll talk a bit more of the air. I pleaded invested, but I'd make sure it's properly diversified and it's invested according to your age and risk tolerance and want to do that with you stand aligned with anyone's life.

Thanks for joining us today and moneywise live here team is away from the studios were not here. Don't call in, but we got some great questions. We lined up in advance will go there in just a moment but first let me remind you moneywise is a partnership between Moody radio and moneywise immediately rely on your support to do what we do on the airwaves each day and enter happen on the webs.

If you consider a gift would certainly be grateful to send moneywise.org and click donate all right to Evansville, Indiana hey Steve, thanks for your patience, sir. How can I help you thanks for taking my call.

Rob and I have a credit card. I would like to cancel. It has been compromised and we've been through quite a bit with the bank that handles the card and I would just rather cancel it and be done with it, but I'm concerned about what it would do to my credit score and there is a way that I can actually find out how to check that yeah let me ask you out, I'll answer your question Steve because he will probably see it. Generally, a lower score, but it will be temporary. But does that matter in the sense that, are you going to be out seeking new credit in the near future. No, not really. Okay yes, I think from that standpoint, I wouldn't worry about it because your lower score will be temporary. Here's why that happens it it affects three of the five factors that measure your credit worthiness. The first is a potentially three of five. The first is credit utilization which is 30% your score.

By closing this card if you're carrying balances.

Whether that's a balance you're caring after you month after month and just panned out a little bit of the time or you're charging up a balance that's being reported to the Bureau and then paying it off completely.

That balance is now a higher percentage of the total available across all your cards because that particular card. You close the limit of that one is now off the table so that had a $10,000 limit now your total available credit is 10,000 lower and so any balances you're carrying our higher percentage in if they are now 30% or more of the total limit that is going to hurt your score. It also affects the average age of your account because if the if this was an older account that perhaps is now out of the equation and then the third thing is the types of credit you have, the more credit you have, that's being handled responsibly shows you know that you are a lower risk all of those factors that when you close an account will rebuild themselves over time and you're probably looking at somewhere between 30 and 50 points in a reduction so I wouldn't be terribly concerned about. I think what's more important is that this is an account is been compromised. If you're not using it. It could be compromised again. I get it closed. If it were me, and it's just one less account you have to think about okay, sounds good. I really do appreciate Eric mentioning God bless you for the work you're doing all right. Steve, thank you for calling Sarah God bless you as well to Ohio. Craig, thanks for calling Sir how can I help in regards to the long I will wondering how I would go about that.

Yeah, like I bonds a lot of high standing for inflation bonds issued by the US government, the U.S. Treasury, in fact, backed by the full faith and credit of the United States government. The interest rate adjusts every six months. In the portion of it that's pegged to CPI, the consumer price index is what's driving these elevated rates right now going to be near over 9% projected to be in May and then it'll adjust again in November, but given the fact that were counting on elevated inflation for some time. I think these are to be a great investment.

You got a hold it for a year and if you take it out less than five years, you'll just give up the last three months interest when you redeem it you would buy them to your question craig@treasurydirect.gov treasury direct.GOP that's the treasury's website where you can buy these you can do it all online and with an electronic transfer and it will be an electronic bond and then you hang onto it collect that great interest rate.

Of the nearly 8%. Right now, soon to be over nine and I think it would be a great thing for you for up to $10,000. I haven't got online and all that way.

Yeah, there really isn't sending the only other way to do a paper bonds paper I bonds would be through your tax refund. Are you expecting a tax refund.

I would okay yeah believe that one is you have to refile no one. Unfortunately, you're going to have to do it through the website, so perhaps there's a family member or friend that can help you with that. It should be fairly simple and secure process for you to go about because if you go directly to the website you not to worry about McKenna fishing schemes or anything like that. You just want to type directly into a modern browser treasury direct.GOP and then find the process of getting those funds transferred, but it will need to be done now online.well there you go. Yeah, your daughter, or probably any 10-year-old.

These these younger kids seem pretty adept at all the stuff I was joking with that. By the way, but yeah, I think that could be a great option for you. Greg and I think you'll be glad you did solicit, thanks for your call and for listening serve a God bless you. We appreciate it before you take a break. A quick email that came in a Gloria wrote to us and said I asked all three agencies to freeze my credit she's talking about the credit bureaus, Experian and Equifax and Trans Union.

Now I don't know Gloria says that that was a good idea what you think. Yeah, I like freezing your credit especially if you had some accounts compromised. Here's what that's going to do. No one is going to be able to access your credit for the purpose of opening a new credit line or taking out a loan in your name without a pin number that you've established Gloria at these three bureaus, which means if somebody's trying to compromise or assume your identity and open accounts fraudulently and in your name, they'll be stopped in their tracks and so that's a good thing. It's going to create a little more hassle if you try to go get your own loan because you gotta unlock or unfreeze these these Bureau reports but apart from that, I think this is a great thing and something that most of us should be thinking about, especially if you've been notified that your information has been compromised. It's very easy to do and it doesn't cost anything as of new legislation a couple years ago.

So just go experience at the facts and Trans Union on very specific instructions on where to pause for a break. How should we as Christians think about investing.

What if we could invest our money in a way that aligns with what we believe that Eventide we believe it is possible to love God and love our neighbor in the very practice of investing we design investments for performance and a better world so you can invest for the future with a sense of wholeness and purpose.

We call this investing that makes the world rejoice. More information is available@investeventide.com when it comes to investing guidance you want advice, grounded in God's word.

That's the approach offered by sound mind investing. SMI has helped tens of thousands of Christians acquire investing wisdom and confidence.

Regardless of your investing experience more how much you have to invest can learn to be a wise and faithful steward in the area of investing a short video webinar on profit and peace of mind is available now sound mind investing on you may know that you are loved by family, friends, by God, but do you really Dr. Gary Chapman have teamed up to write no loan five truths about God and your lovely learn how to know your flight and how God uses it to communicate with you personally learn how God is intimately involved in your life in unexpected ways. Purchase your copy of seen.com authors Robert and Nancy log Demuth of her many life stories. They all point to the same God's hand we see in everything so we can trust him to write story it's encouragement you need to control our lives to be written price and for his glory. You can trust God to write your story by Robert and Nancy will order your copy today@moodypublishers.com.

Your kids are grown and you're in a new stage of life. It's a challenging adjustment but author Dr. Jim Burns says now is the time to make a fresh start in his new book, finding joy in the empty nest and equip you with practical advice learn to manage big issues like aging parents, managing a fixed income or how to help your children request your copy of finding joy in the empty nest with a gift of $25 or more moneywise live.sorry son John Scott, the US is announced a shipment of 100 million in military equipment to Ukraine separate from what will be coming from the 40 billion approved Thursday by Congress. The latest package includes 18 howitzers, as well as anti-artillery radar systems while counting in Pennsylvania's Republican primary for U.S. Senate dragging on down to 1/3 day is Dr. Matt Oz and former hedge fund CEO David McCormick remained essentially time tens of thousands of balance left italic Oz led McCormick by just over 1200 votes as of midday today sucks having another volatile day lower on Wall Street. The Dow was down 237 points. The NASDAQ lost 29. The S&P dropped 22 this is SRA news with us today. I moneywise live by God's wisdom to your financial decisions, care teams away from the studio two days ago: that we lined up some great questions in advance of that's it right back to the phones stream would Illinois Desiree McCue for going to read it and I have many hundred thousand dollars and I'm looking at, and I won't need it.

I very erect out a financial planner staffing on my going to try it, maybe ending with that money that might have been converted over to an IRA that rots right now I have no Roth IRA on it.

It didn't work out that way sci-fi when camping think that basically rolled over the 401(k) into an IRA and I'm looking at potentially rolling it to an IRA that that rock but I don't know if that really matter. You know it.

It it the tax burden while I'm alive and able to help protect that like it even more for my fine then maybe 31 years old.

I'm picky, lucky and God left me incredibly happy. Able to be retired at that point with no need to worry about anything correct my life on so that money I might not want to live like take attack burden and pay that and then let it roll.

However, many years. I hat on at that rock yeah yeah's sudden certainly to explore with your CPA you do use a tax preparer.

You basically get a different one on right now when and how I even give away everything that I mean yell out that Lee then take attack, but not that would be growling everything growling at that point, and I'm not sure that not smart for everybody you know know I hear you and that is this is that you don't need it in the Lord Terry's and you live a long time, then you would be subject to required minimum distributions either. You know, typically the time to convert to a Roth is when your you believe you're in a lower tax bracket and you know in terms of from a legislative standpoint, I would say that your taxes are about as low as we can see right now I think of anything they're going up so could you make a case while you're no longer working in you. Did you have some disposable income that would make sense for you to go and pay the tax.

Now, you certainly could. I mean, I think the real benefit to a Roth is when you have a lot of time. You get those compounded tax free growth going on.

Depending on your investment strategy right now, given that year, you're not working. Although you don't need the money so you may still be pretty much fully invested but depending on how you structured that if you're not getting get a whole Lotta growth in in the years ahead.

Your obviously blessing your errors by paying this tax now because they don't have to pay that when they inherit the Roth whereas they do, even though they would have a penalty. They pay the tax at their ordinary income rates as they take out of an inherited traditional IRA so I think it's really just a matter of do you want to kinda bite the bullet now so to speak and pay that tax for them and then get that tax-free growth and not have to pull it out, you know, when you reach the age where you normally would with an RMD at 72 or you know, do you want to just let this continue to grow on a tax-deferred environment. Pass it on what should be a great blessing to them and then they can just pay the taxes it comes out. I think that's really just a planning conversation for you to look at with the CPA.

You certainly wouldn't want to do all of it because you'd bump a significant portion of that up and have some really high tax brackets. If you did anything you want to stagger it over a number of years, but I think working with your CPA on that strategy would probably be the best option pertinent to take that right now because I probably 20 years but find hard ending retired and not make a lot of money and logic that not going to have a big reconnect when he retired and now looking at kind of pain at retirement going to hand I'm doing well so you think I am appealing at the 20 binder targeted to hand and take it little by little.

Right now I'm lucky that tax bracket so I think there's something to be considered here because as you said, you can invested as its is as though it's his money, which that's the way you're categorizing this, you got the margin going pay the tax. What a blessing for him to be able to not only get this tax-free, but allowed to continue to grow tax-free down the road so I think it's a good strategy. I'm on board with the Desiree just work with your tax preparer as to the mechanics of how and when you go about it. We appreciate your call today.

Mary's in Ohio W CRF merry-go-round.void and possible standing yes don't have a routine inventory Internet. I know what to get this right had a boy and cost spending yeah well it's a question I can't say I've got before, but it's a really good one, Mary, and obviously shopping at garage sales and thrift stores are great way to spend less for the things that you need is no question about that, but you can absolutely do impulse buying at a garage sale. In fact, if you don't know what you're going for, which is typically the way it is with garage sales.

They lend themselves to impulse buying.

Because you see something in the fact that it's at a discount makes you believe, well, this is a great deal to go ahead with it. But the problem is, even though you're getting a good deal on it. You end up buying things you don't really need.

And so I think the the option for you would be number one.

Make sure use an all cash system because you're going to spend less with cash that's typically the way people pay for things that would garage sale so that's nothing new. But number two.

I would really have a list of the things that you need and not just go browsing because browsing, whether in a retail store or garage sale is what gets in trouble because again we spend money on things we don't need 30 days later were like why did I buy that I don't really need that and we end up buying a lot of things in the name of saving money that we really don't need.

At the end of the day. I think the third thing is just make sure there's a line item in your budget for your garage sailing and thrifty because again if were buying things we don't need or were buying things with money we don't have that's problematic.

So use all cash. You make a list of what you're going for in advance to make sure there's money in the budget and you don't go over that. I think those would be the three keys. Does that make sense already got bless you, Mary. We appreciate your golf quickly to portage Michigan Janine how can help you. I have thought a lot about five or 6000 they went on about 81,000 down to 75,000 my financial man who handled IRA and he suggested that I could put that money and choose three probably go from about 2 1/2% to three and half percent and you could buy one at around three months and another one from anywhere from 18 to 24 months and then another one at about the same and he said and I went to get about $400 which is what I'm getting now.

You don't want to cut you often want to be sure you plenty of time to answer questions so I get to take a quick break.

I heard the first part of a let you finish that, on the other side of this break really quick and then give you my thoughts as I want to make sure we cover this fully in the time you need so you stand the line because it will be right back in Michigan. This is moneywise live biblical wisdom for your financial decision. This is my last team is: that we lined up some great questions. We can have right back to the phones Janine before our break. You were sharing that you got 75,000, or thereabouts, in an IRA. You've seen some volatility with the market you lost about five or 6000 since January you're in your 80s and you been talking to your advisor about whether you should cash out of your current investments and move this money into a laddered that's just simply means that a set of CDs that are staggered based on their maturity date so you could do a one year to year and a three year something like that. But let me ask you, did you say you're currently drawing some money each month out of this account. $30 to add to my security and I would like doing that I can get that much yeah okay so 430 suiting about 5000 a year out of this and at 75,000. I realize it was higher but the 4% a year which we what we be targeting, typically with an investment strategy unites, it would be looking at about 3000 a year. So you know, I'd love for you to get that down to about 250 a month or just recognize you to be eating into some of the principal I'm not surprised that you've lost you know this since January. Do you know what portion of your portfolios in stocks versus bonds or other assets, and 20% that he works with Isaac. I think that's about right now. Obviously, in a market like we have going on right now me down another 600 today down a thousand on Friday. You know we are in a situation where were to continue to see challenges in the market and you know we could hit a recession a year or two from now.

I think the key would be to recognize listen when we get into a period like this you know where you have these kinds of declines, but their paper losses until we sell.

And so that's why with the 20 year in some cases, 30% with an income portfolio that's in stocks, you know, we realize that's gonna be down, but we count on those decades of word trends to make up for the you know year or two. In some cases usually is not more than that, that we might have kind of a down leg of the market and so I think from that standpoint as long as you're prepared for it. You got the right investment mix is consistent with your age and your goals.

In this case you are trying to generate income.

We just recognize that's a part of the equation. We, we ride it out, knowing that you know if the Lord Terry's and you're in good health. You need this to last potentially a couple of decades and so having a growth component to it, especially in light of, or experiencing right now with inflation is a good thing. But if it the end of the day Janine you'd say you know what I just really can't sleep at night unless I protect what I have but I don't want to take this risk even though you and I made money in the last few years. I just don't want to see those statements where that money is down, and if that's the case, then you probably need to move to something that is along the lines of what he's talking about the challenges in a let's say you know that average return is only 2%. Well, if you cash out right now at 75,000 were only talking about 1500 year so you know that's $125 a month and that extra 300 that your pole and doesn't come right out of principal so that account is going to be declining over time so I think that's the question you need to answer is, you know, can I take the long view and recognize that the volatility is going to cause me to it on paper lose value and I'm okay with that because I got the long term in mind or is it just robbing me of my peace of mind and I'd really rather sure up what I have but I am also willing to accept the fact that it's not going to generate enough each year to cover what I'm pulling out it's over time, that balance is going to be declining. Does that make sense well say 20,000 60,000 and 15,000 is referring to me taking out the extra money to make up the 400 and out of this case, but I'm not sure what he does make sense to me and Emily would keep it all working for you as long as you can, you know, putting it in cash. Number one, you pay the tax on it.

When you pull it out and you can stick it in a bank account.

Obviously, you need to be able to draw on it but there shouldn't be any reason why you can't just take a scheduled distribution every month.

I'm not sure what you sold for by pulling the 15 out putting it in your checking account or something like that.

So I think that's where you just need to look at what is the right long-term investment strategy for you to try to get this money to last as long as you possibly can. And you know are you do you feel comfortable with that at the end of the day market go. Well, you just have to look over the last 10 years and see what the market is done to be encouraged because this is a pretty new anomaly. Now it happens so that's why even when the market was going straight up we say wins the next recession because there always is one.

The question is it six months away, or is it six years away and were probably closer than we are farther because of how far this market is come how high the valuations are and how well it's done over the last 12 years or so, you know, since the 14 years since the 2008 2009 collapse so I think you know that's at the end of the day what you need to decide Inc. this is your money that God is giving you the steward so you need to have peace of mind about it and I think you've got wise counsel. There are so you need to hear the advisor out talk through it and come to a conclusion that makes sense, but you need understand the implications of that plan in terms of how long this money is going to last.

I realize there's not a perfect solution here and then so I'm sorry about that, and I'm just a prelude to give you some wisdom you go back and talk it through with him, try to understand why he was recommend you pull the 15 out and perhaps consider whether you should stay with the current strategy which has the prospects for longer-term growth that's gonna meet your withdrawal rate, but recognize with that comes increased risk and volatility and you need to be able to weather that without getting anxious. So I asked the Lord to give you some wisdom and will check back in with us and let us know what you decide. We appreciate your call today to Cleveland, Ohio Carolyn, thank you for your patience.

Karen, thank you so much. I am getting a divorce and I'm wondering what to do with a joint credit card that we had in excess of 30 years and how affect my credit score. Yes, well, so you generally can't remove a name from a joint credit card has to be canceled, so in most states in the divorce both parties would would be responsible for the credit card debt on the card held jointly and this applies even if one spouse was the one who used the most are made the payments a judge, however, could decide that one spouse is able to pay more than the other and that would be spelled out in the settlement agreement but in terms of the creditor your jointly and equally responsible for that debt. I know okay alright so the question is just how is it going to affect you when it's closed. Correct okay yeah I wouldn't worry about that when you close an account you'll see a probably a temporary drop one card can be pretty negligible. Number one the reason that it happens, as it removes that in many cases from your history. So that's just one less account.

Especially this one. It's been open for a long time. That's factoring into your credit score number two if there's balances on any other cards. It reduces your overall limit which makes the balance you're carrying a higher utilization ratio if that tips over 30% that'll hurt you. But if you're not carrying any balances.

That's probably not an issue so I wouldn't worry about it.

The other thing is if you're not looking to go out and borrow money, buy a house, take out a new loan car with that you doesn't really matter because the temporary drop in your score because you close the card is not really of of much concern and the bottom line is if you're divorcing this needs to be close so you really don't have another option but a minor drop in the score I Carolyn is not something to be concerned about in my view, okay. Thank you. You're welcome.

God bless you.

We appreciate your call today. Let's finish up in Illinois today. Joe, you go right answer.

Thanks for doing what was your hero one day last week and he was telling me that your same technique 10 to 12 I is like your annual income require run these rules of thumb, Joe, and that's all they are, so you may listen that symbol that's crazy I I can do that, you know who can do that. And you're right. To me that's a lot of money is getting a long time to say that the idea behind that is, you know what you're looking for is to offset what is not going to be paid by Social Security and so you know if you were to take some surveys making $65,000 be 780 grand at 4% return, we could throw off the 780,000 we could throw off 31,000 a year. That plus Social Security should make up. You know what most people spend on in retirement, which is about 80% of their pre-retirement income.

So that's if you want to fully fund you know your pre-retirement income minus about 20% through just your retirement savings plus Social Security alone. That's what it's going to take. Now some people say listen. I started too late and I can get there and I can have that much, that's fine. Just you gotta make the numbers work and you gotta work up your budget. Make sure you have what it takes to cover your expenses. Whatever that is whatever God's calling you to in this season of life, but that's at least the rationale behind that multiple of your income as a goal but give me your thoughts about years, you would need $1 million you asking whether you need a million yeah yeah I mean if you want to live on 80%. Your preretirement income that give you 1.2 million. If you pull out 4% a year. That's only $48,000 were spent in 100. So you're pretty take a pretty drastic cut in pay, unless you want a lot of principle and that's at least the thought behind it posted as I got a wrap the program you stand the line. We'll talk a bit more off here just to finish up to do it for us today. Folks realize lot is a partnership between movie radio moneywise media.

Thank you to Dan thank you to Eric and Jim as well. Thank you for being here back into his next time on moneywise


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