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Empty Nest Finances, Part 2

MoneyWise / Rob West and Steve Moore
The Truth Network Radio
May 20, 2022 5:00 pm

Empty Nest Finances, Part 2

MoneyWise / Rob West and Steve Moore

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May 20, 2022 5:00 pm

Couples in their fifties face a time of life that’s full of new challenges. But beyond navigating the empty nest, what other issues do couples in this stage of life face? On today's MoneyWise Live, host Rob West will welcome Jim Burns to talk about facing these challenges head on and managing your empty nest finances. Then he’ll answer your calls and questions on various financial topics. 

See omnystudio.com/listener for privacy information.

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How do you forgive a dead man, particularly when he's your grandfather, I'm Brian Dalen in a brand-new podcast called the grandfather I hope to find out visitor profile and follow the grandfather podcast today aging parents having enough saved for retirement. Those are the answers Rob West and the question is there 50s. It's a time of life when new challenges present themselves.

Talk about how to face them head on today with Jim Burns that it's all your calls at 802 five 7800 525-7000 moneywise live will Jim Burns joins us empty nest discover purpose and passion in the next stage of life and Jim delighted to have you back with us to be back Jim when you were with her several weeks ago we talked about the changes that take place when our grown-up children leave the nest listeners. By the way, may want to check out that April 26 episode in our archives@moneywise.org, but today will tackle some of the other issues that confront us in our 50s and how to deal with them and let's start with the question of aging parents, Jim. What challenges might we see as our parents get older and possibly look to us for help as we started doing focus groups with the finding joy project.this was one of the major issues our kids are leaving the house and you same time our parents are needing more and prickly.

A lot of the people begin to take over the finances of the parent or they actually thought we had to help out with with my mother-in-law and districts by surprise. We never talked about it. We did think about it, they were to live forever. There were to be healthy forever Nap. The average empty nest you leave what it 48.9 years to become an empty Nestor and that's why when your parents are not in need in a different way than probably ever before.

These two things can collide is ready for them.

Jim, let's touch on the financial aspect of this. Obviously finances with aging parents can be tricky. How do we know when and how much to help if it's needed important to communicate at a time, not in the heat of the battle not be emergency sometimes you have to buy think whenever possible you use it down and you have those conversations with your parents almost forced upon them that want to talk about it, but I think you do ahead of time so that you know my dad was really good shot with my dad that I know you don't need me now, but if you need me.

How are we going to handle this thing. I was the executor of his will, long before that we start talking about your finances and bills and things like that. Anyone it was smooth. He helped me because he talked to me, but what I started the process because I went to have the meeting at first that was real tough for him got easier. We will yeah that's really helpful to Jim. This is the pandemic is shown is that sometimes the empty-nesters and so empty as adult children may have to return home for a season if they're facing financial difficulties. How do we handle that aspect of the being parents of adult children while they left. As teams experience at producer near leave the teens but they do come back as adult lifestyle is different and so you have to renegotiate what it's like what we found with our three daughters is that when they did I donate all boomerang times that they came back and then kind of move back into the team process we had to do with a note here some expectations and also what are your expectations finances.

We kind of discussed that because they move back in Le Monde Elgin take care of everything. Look at here's what we were thrilled you're here. And we know it's a season at the top season for all. But here's what we can do, and here's what were expecting you to do that makes it easier it still bumpy because there's a high cost to talk about money and bill with but it's in the process and the preparation for that really can help and then also your job is to help them become responsible adults. What you're paying for everything and obviously they are not to become financially responsible, and the really not know. I think full fledged adults until they become financially responsible and select part of our job to help them do that. Sometimes that's with a word, no, you know that's we can do that because capacity or the money. No that's not that's not our plan.

That's really helpful and I imagine clear expectations, open communication, and guardrails are the key. There.is the key. To be clear is to be kind and you can help your kids in a big way when you have those expectations in front of them is it's great. Will Jim you give us a lot to think about. Thanks for stopping by.

That help us prepare for this next stage in life.

Thanks so much and great job. What you do. Thank you.

That's Jim Burns, author of finding joy in the empty nest can get a copy today with a gift of $25 or more to moneywise.

Just go to moneywise.org and click donate will be back with your questions.

Just after this stick around with us today. I moneywise live on the phone lines open today would love to hear from you.

Do you have a financial question like to run something by us. Perhaps you and your spouse are not quite on the same page and you'd like another perspective, whatever it might be would love to hear from you. We apply God's wisdom to the financial decisions and choices you make every day and do it together here each afternoon on moneywise live so if you'd like to get in on the conversation. The number to call is 800-525-7000 melodies standing by to take your phone calls today and then you'll probably talk to Amy will get to write on the air 800-525-7000. Look forward to hearing from you.

Sorry. Let's dive in working to go to the phones beginning today in Indianapolis Indiana may thank you for calling the redhead all dollar 401(k) in the past three months so I think I'd have to talk until her three year.

So what you think about that retirement and how much you will build up in that 401(k).

Wow he also felt he had pension but he had 110,004 a lot.

Okay.

Whether he would lose anything on that well and you said that money has lost about 8000 recently so that 7% of that and that's not unexpected, given what's going on in the market. Talk to me about this 401(k), you know, as it relates to your overall retirement plan. Are you all living off of the pension plus Social Security and intending this money just to continue to grow or are you funding your lifestyle and living expenses. Some other way for a while. I'm still working on younger okay.401(k) okay and he retired 13 year 401(k) scared about live in it because I don't want to lose anything on church and your expenses are covered through your income. Plus he's drawing the pension and Social Security himself yet.

And at the end of the month. Do you all have a good bit of margin or excess each month. Right now okay but if you were to retire, would you will have to start taking an income from either your 401(k) or his or both, or is the pension and Social Security plus ultimately your Social Security enough to cover your living expenses went well.

Hate all of my electric bill and that by hundred and 70 he should move it or not you read here and 3% interest. Sure, let's talk about that your annuities are my favorite tool. They tend to be a bit expensive in the sense that there are fees and commissions associated with them and you lose access to the money without surrender charges, at least in the early period of the contract. One of the benefits well for somebody who wants to transfer risk away from themselves. Meaning you're bearing the full risk of the investment performance is the stock market ebbs and flows, depending upon how those assets are allocated your bearing that risk now, but you have access to the money if you needed a tapper, you did tap into any portion of that for an unexpected expense medically or otherwise, you have access to the funds you could take a withdrawal or be a tax consequence but you have access to the money the annuity takes that risk and transfers it away from you to the insurance company in exchange for guaranteed rate of return as you said 3% a year, but you lose access to the funds in the sense that if you want to get that money back you're going to pay at least in the early part of the contract some pretty hefty surrender charges. So the question would be, can you all accomplish your objectives with the investment strategy you have her with some tweaks to the investment strategy and ride out this volatility in the market and we got a 12+ year bull market run just simply meeting the economy's been very strong. The stock market has been very strong loosing great performance from equities.

That is, stocks across the board for a long long time and the markets and the economy is cyclical.

It looks like we could be heading for a recession were certainly seeing the possibility of that play out in the market through incredible volatility.

But you know if you have a long-term perspective. Even at age 70 of the Lord Terry's and he's in good health and your younger you will need this money to last potentially couple of decades.

So if you're invested properly you would go into this saying we believe in the investment allocation we have. We don't need this money. So even though were down 7% or so right now and we could be down another seven or even more when I can remove anything because we know this is money that were looking, you know, 10 years plus down the road either as an inheritance or money that we might need to tap into for long-term care. Something like that and so were going to let it grow but you have to have you know be able to sleep at night and have the peace of mind to know that you have other assets, meaning the pension you got your Social Security you got your income ultimately your Social Security.

Both of these 401(k)s and so your you're okay taking a little bit more risk because you want a better rate of return over the long haul than the 3% you can get with the insurance company. But if you said nobody rather have the peace of mind to know that I can't lose anything that I don't think there's any problem may with you taking this rolling it over to an IRA annuity so it stays within that tax-deferred vehicle goes into an insurance contract. They will take it and invest it will give you the guaranteed 3% return, and as long as you continue to hold onto that contract and get past any surrender charges you could make some changes down the road and that may be exactly what you're looking for. It's just not my first choice because of the reasons that I mentioned, but give me your questions and thoughts your first, I would say because you all your income is covering your expenses through Social Security.

His pension and your job you would say you know what were debt-free. We have limited expenses were living modestly, our bills are covered and so therefore we can let my 401(k) meaning yours and his continue to grow yes were down 7%. Right now, but that's just because were in an unusual period of time.

Even if we had a full-blown recession. On average that's gonna last summer between 11 months and you know two years out at the backend just historically speaking, and so were just gonna ride that out as long as the allocation is okay, meaning that you're not too heavily concentrated in stocks for his age and risk tolerance. But if it is you'd say those are just temporary paper losses and until we sell something we haven't actually realized the Lawsons organa just ride this out knowing that we have the prospect of making more money down the road, especially as the market recovers and were looking longer-term and hoping for a better rate of return than 3% hello my mortal right 401(k) yet it's not really about the 401(k) that's just as tax-deferred vehicle the same as an IRA and an IRA annuity that that's just the tax treatment. The question is what are the investments and so inside the 401(k) you have investment options. Subaccounts are typically mutual funds.

So the question is what investments are you enter the stocks of the bonds of the mix of stocks and bonds. Are you too aggressive for his age. Probably not. If you're down 7%. Given what we've seen in the market. The last couple of months, you're probably about right, but I would take a look at that.

The question is, is the investments of an insurance company a guaranteed 3%.

A better option for you right now than what you're currently invested in for me it's not a matter of whether it's an annuity or an IRA or 401(k). It's a matter of how much risk are we taking for what return one expected return and is that appropriate given our agent goals and objectives where God is taking us in the assets that he's given us some accents.

I hate you know you met last week Wednesday. I claim that I would call you guy yeah well annuities are typically sold not bought. Here's what I mean by that somebody will you sell them to us convinces that this is the best option and that again is not something that says insurance, annuity, salesman, or doing anything wrong. It just means that often times because they're complicated because they tend to be no expensive there often sold by people that you know believe that's the best option for you at the very least, may what I would say is get a couple of other opinions.

But again, my first choice would be that as long as the investments are allocated properly, meaning that you're in the right investments. According to his age risk tolerance goals and objectives and you stick it out. Stay where you are and know that even though there could be more downside probably will be that were in it for the long hold it in a life expectancy is his longer and longer. We need this money. The last probably to age 95 or 99 obviously the Lord could choose to take us home in the next breath but we planned and try to get the money to last as long as we can see you can accomplish what God has for you in the season and I think that's best done in a properly diversified stock and bond portfolio especially where your bills are covered. You all are living modestly, your debt free and you're not necessarily moving this into an insurance contract, so I'd probably stay right where you are but perhaps to give him a little more peace of mind. Maybe you connect with a couple of advisors just to get a few other opinions. That's never a bad decision.

This is called the binary trap and what that means is we say well should I buy the annuity or stay where I am. What about the other alternatives. Maybe it stay where you are and change the investments. Let's consider all the alternatives before we make a decision right now were just looking at this work.

That is probably lots of other options. So I had to our website moneywise.org and find a couple of certified kingdom advisors there in Indy to look at the portfolio all the assets in their perspective that I said thanks for the positive right that much more money was taken the time to be with us today. I moneywise live around West phone lines open.

Would love to hear from you what's on your mind today 800-525-7000 is a number to call. It's 800-525-7000.

Whether it's your budget are paying down debt. Maybe it's that credit score or saving for the future.

Perhaps it's your giving plan. Do you have a plan for your getting.

There were never to be able to give to the maximum of our ability. If we don't plan for. Yeah, there's a place for spontaneous giving but really thinking through your giving strategy, like you would your investment strategy I think will make a world of difference. Well, whatever's on your mind today give us a call 800-525-7000 back to the phones we go the Tri-Cities, Tennessee Alex, thanks for calling.

Redheads are all question about saving right now I don't have six months work on very low in that department, but I have been having regularly perspective & it's just what my savings I give half of that as a contribution. I'm wondering should I lower that stop that, in order to get my emergency funds or should I keep doing that. Just try to stay as lean as I can honestly don't want Joyce Micah Curiel. I appreciate the question. Obviously you want to honor the Lord in your giving.

You also want to have some margin something to fall back on, which I think is a biblical principle as well and so I think the question is how can you step back from all of this and say what look like to order my finances in such a way that accomplishes these simultaneous objectives because your financial management is not sequential and simultaneous. So were trying to do all of these things handle all of these priorities at once and really comes down to. I think starting on her knees and say, Lord, what if you called me to do.

Beginning with the question, not how much do you want me to give but what you want me to keep which got flips that upset that idea upside down, Alex. I wouldn't encourage you to change your giving it all.

I think it's one of the things that really breaks the grip of money over our lives. It's incredible blessing the Lord gives us to be participating in his activity through our taking of his provision. His resources because it all belongs to him and allowing us to get some of that going into his kingdom activity and so the ability to do that is something we should be looking to increase over time but now I understand there is this other priority that you have about having enough emergency reserves and I think that's a good idea how much many months where the expenses do you have today.

Would you say aren't very good and have you done some hard work on that budget to say where could I cut back without changing my giving one bit if I wanted to free up more margin with the be some areas you could make changes in their are endeavoring to put it in a different perspective right now have a check of electronic check back up plan ahead.

But I'm also got physical planner. I'm planning on putting everything down and that way I can cut a snowball method but I'm not the point where I have got all collected via have money in the past, but ended up using it. I'm still paying myself back on yeah got its credit card debt. Is that what you're looking snowball or some other type. I have a credit card that I have a small amount of medical data and then I have my mortgage and I have a car but I see having critical has approximately $3500 if it was over 4000 pretty close eye to look at a debt management program our friend to Christian credit account.org could help but I 3500 snowballing. It's the past let's make this an adventure with God. Alex, let's not change your giving one said let's go back to your budget and see what you can do to get that snowball going get the data covered for other areas to cut back.

Just trust God for this and see how he vies even $50 a month to that emergency savings will.

I will talk to them.

The more I don't care moneywise live chosen to spend some time with this is moneywise live on Rob West. This is where we apply God's wisdom to your financial decisions against lines open today would love to hear from you.

800-525-7000. All this before the break we were talking to Alex in Tennessee.

Alex shared that he's been giving he's got not a whole lot of margin left over every month after his giving and the bills are paid and the debts are covered and he doesn't have an emergency funds his question was, even though I don't want to. Should I cut back my giving so have a little bit more margin to get that emergency fund open.

Here is my advice to Alex you know when we think about our giving.

I don't think number one we can out give God.

Number two, we were created in the image of God he is the ultimate giver so I like to say were most like him when were giving so let's start by not asking the question, should we cut are giving or can we cut our giving, but what can we do to continue giving as the Lord leads us and accomplish the other priorities and so Alex, my thoughts are. We keep that giving right word is you said you don't want to cut it. I'd love for you to continue to do it and let's look for other ways to cut back which means in this is an easy going back to that spending plan looking for areas we can dial back you mentioned yet about 3500 credit card debt plus medical debts and basically an emergency fund at about $50. So what I would say is let's try to get that through any cutbacks you can make in your current spending plan was try to get that up over the next several months to $1000, maybe 1500. Once you reach that point.

Let's The emergency fund for now so that we can focus back in on those credit cards. Let's snowball the credit cards stay laser focused on getting those paid off as quick as you can once they're paid off now. We got a little bit more to go back to the emergency fund to try to get it up from thousand 1502, maybe three months expenses.

What you do that you'll be in a much different BIFF different situation where you can focus on the medical debt and other priorities. The Lord gives you but let's try not to touch the giving and that give me your thoughts on the how does that feel really what I want to hear while really about starting a church.

I thought a lot about it upright a lot about it and I started getting out of my savings each month and while it may not be of 10%. It's really not probably thought on money and on hunt kingdom in general and from the bottled open the windows of heaven really have a lot even though times are hard. I haven't really wanted for anything.

I'm always provided for. I originally started getting about 33% of myself and on blessed me so much the half or more of what I said and I don't regret that while testimony in your honoring the Lord with what you're saying today about his provision in your life and I think that's the right answer. I would hate to see you take all that you been able to give in all that you're excited about giving and change one bit of that except to increase it as the Lord allows you to do so.

Which I'm confident you will the future solicit all the best to you want to send you a book that will be an encouragement to you. In fact send you the stewardship Bible. This is a beautiful Bible that was put together by the American Bible Society in every passage related to money is highlighted in green and perhaps as you meditate on God's word and just study the Scriptures, and especially these passages around God's heart related to our money.

I think it will be an encouragement to you, and I think it's just a matter of time. Alex, before you call back say guess what the Lord allowed me to give now and I know he will continue to bless you solicit thanks for calling today. God bless you sir and I will look forward hearing from you again soon. 800-525-7000 is the number to call a let's and to St. Petersburg, Florida, Kathleen, like you for calling the redhead, Kathleen, are you with this great go right ahead you're on moneywise live 2014. I work out.

Not sure yet wondering, Kathleen Kennedy, in light of this, given where the Lord is adjutant by the way that's incredible won't understand you are missionaries you said you been homeschooling some kids since I come from what my producer said you exit just returned from Poland where you were a ministering to some Ukrainian refugees of the Lord is using you in incredible ways but to your financial question you're wondering, how should you think about the future in terms of the lack of savings that you have and what that might look like.

Is that right sure sure well here's the thing you know God is our provider and he will not abdicate that responsibility to anyone or anything else inside the opportunity you have right now is really just to say what can I do to keep my lifestyle as lean as possible and trust the Lord for his provision. Have you worked long enough to be eligible for Social Security and are you currently drawing that I yes sure and in terms of any gap you have between your monthly bills both fixed and what I call discretionary and your Social Security income.

Is there shortfall every month working time now when I sure sure well let's be grateful that the Lord is giving you health and the ability to work and I think the key right now. Kathleen is just to number one continue to work as long as you can. I think the extent to which you can keep your lifestyle modest, which clearly have been that allows you to take any excess that you're earning beyond what your bills are after Social Security is used to pay your bills and your your income. If you have anything left over just starting to save that building up as much as you can.

Over time, here's what I'm confident in the Lord will honor your service to him and hard work in providing for you. The Bible tells us of these can provide for the birds of the year, how much, not more would he not provide for us, his children, and so we can trust his promises. And you seen that the displayed in your life over a long period of time and so I think the key for you right now is just to continue to work as long as you're able try to set aside as much as you can for the future and a let's just trust that as you move forward. The Lord will continue to provide. Perhaps in unexpected ways that would allow us to only point to his provision and nothing else as to how he is taking care of. We appreciate you calling in today sharing your life with us for a few minutes. Thanks for all that you've done so, push the pause for a quick comeback got some great questions lined up. Perhaps one spot open for you 800-525-7000 is never called you folks as we mind the Scriptures we understand what is on God's heart is not about the money. Money is to accomplish his purposes, not an end to question is what is.

Thanks for joining us today on moneywise live phones Jerome Cedillo hi Janet, thank you for calling the red eye. Long time. There were three 7499.

We do have a financial planner and my question is I had wanted to start a little find for my two grandchildren and he Neutral find high I I don't think my grandchildren will be going to college and not and I'm just wondering you know the way the market been.

I think I think 17.I'm kind of wanting me to put more and I'm just wondering my grandchildren are age think that I'm thinking went out.

I find be more effective.

The next few years I bonds are great. So for the benefit of our listeners. I bond stand for inflation, bonds there issued by the US treasuries are backed by the full faith and credit of the United States government and right now because of the inflationary environment were in currently paying over 9.6% annualized with again basically zero risk because they are backed by the US government. The downside is you can only put in 10,000 have to hold it for at least a year.

If you pull it out with less than five years, you give up three months worth of interest. So it's a great option.

Obviously, that number in terms of what it's paying will change every six months.

The next reset will come in November and it's can be pegged to CPI, the consumer price index but given that we don't expect the inflationary environment were in at an elevated level to go away anytime soon. I think these set rates will continue to be attractive, although they will think over time revert back because the Federal Reserve is committed to really fighting inflation and will continue to raise rates until we see that number come down so there's a limited window of time. I think the other thing to consider here Janet is that you know number one we need to define our time horizon and the way for you to buy I bonds for your grandchild would be through a link to calendar treasury direct.gov which you can do, but it would be a custodial account which just simply means that the age of majority of your grandkids. The money would be theirs to do with whatever they choose with a custodial account that's one of the challenges so that they're not making good decisions are not mature enough to handle this money to take the money by sports car you would have no control over that, or their parents because as a custodial account again when they reach the age of majority in their state. It's their money. So the way around. That would be either a. To put it in a 529 plan, but that would be earmarked for college or if you want to keep it outside of the college -related expenses and to have it be used for any purpose then you could just open an account in your name or if your married joint with you and your husband but separated and earmarked for their purposes so that you can invest it see it grow over time, and then at the time of your choosing. Down the road and through your will. If you were to pass away.

You would have the ability to give them this gift of this this money that you been setting aside when you feel like they're ready for it is and that's the difference with a custodial account that if you do that under your name only, though you can be limited to $10,000 work you put it in a custodial account for the kids with the I bond you could do 10,000 per child. But given that they're pretty young.

I think you know I would be looking longer-term so I guess that's my next question is when would you ideally envision turning this money over to them. Would it be to get their first apartment by their first car sometime in the next 10 years or give a different time horizon in mind when a whiner I okay great and how old are they today okay and so I think you know, given that were talking somewhere between 10 and you know, 15 maybe even 20 years from now, even though were in a difficult.

Right now in terms of volatility.

I actually think Janet this is a great time for you not to be buying I bonds because I think the rates were seeing that are so attractive to you and I agree they are. That's very temporary. I'd be looking longer-term and I think this is actually an incredible buying opportunity for you right now to be buying into the market. You know if the market was just continuing to do with what it's done the last 12 years you'd be buying in your 5000 points higher on the Dow Jones then you are today.

Now does that mean the markets knocking to have additional down like here before it recovers and goes to higher highs. No, not at all. It did absolutely cut me we could hit a full-blown recession here in the next year, but you're not looking one or even two or three years out. You're looking 10 or 20 years out.

Then I think for that reason I would be a buyer of stocks for the long term.

I do that as your advisor said through mutual funds that I wouldn't worry about short-term volatility over six months or year.

I'd be looking at it, saying every pullback where I continue to invest new money.

Let's say you're putting in a certain amount every month and in reinvesting it every decline in the stock market gives you an opportunity to buy more shares of those investments for the same amount of same number of dollars and that's a good thing because as the market recovers and it will, on the other side of this economic event were experiencing right now it's gonna move to new highs and you'll have thought a lot of games to show for it. So I think given everything I've heard, unless you wanted in a custodial account where they can get into the age of majority, but I'm not hearing that. I think you want to keep it in an account either in your name or with you and your husband. I think you want to be a buyer of five good high quality, mutual funds, and I think you want to be a long-term investor and I think you want to see any pullback or decline in the stock market is a great buying opportunity for you to continue to invest this demo makes sense. Saying it to go ahead and add money to the mutual fund that will be okay down and get hang in there because it long term. I'm looking that's exactly right. And through what's called dollar cost averaging, which means you know every new deposit into that account or accounts earmarked for the kids is an opportunity to buy more shares of the same mutual funds, but perhaps if the market is declining by those more shares with the same amount solicitor putting a $250 a month will you go by a certain number of shares at $250 today but the markets down the next time you put into 50 your exit and buy more shares of that mutual fund for the same $250. So as the market recovers and is that mutual fund moves up you're actually going to be rewarded for that. So I think that's the right approach given everything you've described the time horizon. The objectives in the control that you like to have over the funds and director planner wanted to make. I've never made any patient about stocks buying anything that yeah you got a couple of options. Of course you can do it yourself, but you have to do the research, or find one of the solutions that essentially, automate this through computer algorithms that are often called these days Robo advisors where essentially you're just capturing the broad moves of the market through indexes or you could have an advisor make these decisions for you so you will have a financial planner who is an investment advisor if he or she knows what you're trying to accomplish. They can select those high quality, mutual funds, and essentially all you have to do is just decide how much you want to put in each month so I think you're on the right track. I'd go with them. What he or she is is describe because it makes sense to me.

We appreciate your call today to Elgin in India skews me Illinois Rosemary, thank you for going to redhead hi thank you for taking my calling for everything that you do Rob to question any opinion or experience with companies that will pay a person's bills if they are incapacitated. So are you talking about like an insurance policy or something else know know a company that is specifically set up. He would I talk to an attorney and explain the situation and she connected me to a company that could pay my mortgage and pay my Association fee paid my utilities while I'm in the hospital or if I'm at end of life and I'm just wondering if these companies are legitimate or do you have any opinion about. I don't have a lot of experience or talk about probably an advocacy group on vaguely familiar with them, but have not done a lot of due diligence so I think I mean obviously meant some of these are reputable, many of them are field this would be a group that would provide a range of services for disabled senior whether that's guardianship or ill care management.

That type of thing.

I think the key here Rosemary is just to do a lot of research, get reviews online, talk to people who use their services. See if they're satisfied. I wouldn't move into this quickly. I would really take my time about any decision that you make in that regard because I don't have a whole lot of experience to be able to say this one is better than that one or anything like that. Okay. My question is my financial person at my bank suggested a single premium deferred individual annuity where you put so much money into an annuity it's not one of those where you get so much money per month or per year. It's something where it's got a term of two or three years and at the end of it you are able to take the whole sum out without any penalty. Yeah, I mean, so this is called a test PDA or single premium deferred annuity.

Usually these are best suited Rosemary for people who are planning their retirement and they're worried they may run out of retirement savings and they've got a nice enough cash on hand they can fully fund the upfront premium payment to that one payment and then the convert that to an income stream for life. If that's not your situation you're just trying to save for the future. I would say an annuity. Certainly a single premium is not the best way to go. I'm ready have a long-term investment strategy makes sense and keeps you able to access your funds and hope that helps. We appreciate your call today, she is today. Folks moneywise. Life is a partnership between the radio and moneywise media think Jim and today is Sunday next time you will see


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