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August 18, 2022 5:30 pm
The national debt has now soared to more than 30-trillion dollars. But what does that mean for the future of the average American? On today's MoneyWise Live, host Rob West will welcome economist Jerry Bowyer to see if he thinks there’s a debt crisis looming on the horizon. Then Rob will answer your calls and questions on various financial topics.
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Today's version of moneywise.
Life is pretty recorded phone lines are not consequences arising from the continual accumulation of public debts and other countries ought to admonish us to prevent their own growth in our own John Adams I am Rob West flowery language echoing from the past, warning us about the danger of a huge national debt now at more than $30 trillion will talk about that with Jerry Boyer today and then will have some great calls lined up but since we're not alive today. Please hold your calls until next time. This is moneywise live biblical wisdom for your financial journey.
Jerry Boyer is our resident moneywise and he is known as a glass half-full kind of guy, often holding a more optimistic view when others see only doom and gloom in the economy. Jerry welcome back pleasure to be with you. I guess my cup runneth over, kinda guy take that at last a full and running over, that's right, then you are usually optimistic, but now Jerry concerning the national debt will perhaps your position has shifted just a bit so wanted to explain well the situation is shifted right so as the situation shifts.
We have to kind of update our knowledge and kinda know the season that we are in and Rob you and I know and anyone is listening to Christian radio knows that there have been a lot of warnings about the imminent collapse the coming economic earthquake. The coming economic collapse. The hyperinflation, the collapse of the dollar in the 80s going back to the 80s there was a lot of talk about this and as an economist. I looked at the underlying data and I said well this debt is not a good thing. But if you kinda put it in context. We can handle it.
The US economy was strong enough in our borrowing capacity was great enough that even though I didn't like all this borrowing, it didn't seem to me that it would trigger an event and we even had some stuff more recently with the blood moon of Darien is that we got a lot of false positives on the end of the world and my job is usually been in media to say no this is you know it's not happening. There's no imminent danger or maybe just a danger down the line but not yet.
And that's not where I am anymore because, in fact, I think we are entering a different season. Well Jerry, I love to dig into that. What factors make you think a debt crisis is now more of a possibility.
Well, there's a couple of major factors. One is the debt or hate the tech crisis is driven by the debt and I know there was a lot of conversation about the deficits in the debt under Reagan but you know under Reagan that the debt to GDP ratio. What is that mean the amount we owed compared to the amount that we produced of economic growth. So think of it as it was about 30% of 30 to 50% depending on where you were in the 80s. So if somebody has $30,000 in debt and they go to an advisor and they say am I in trouble then you not just get you to answer your third $30,000 in debt. Are you in trouble, but I don't know I need to know more. Since your income all my income is $100,000 and I'm not gonna retire for 20 years. All okay. You're probably not in trouble. Oh, I'm unemployed, chronically or I'm I'm on disability and my income is $15,000 a year. Well yeah kind of are in trouble. So in the 1980s we had a growing economy. We had strong demographics and we had that debt to GDP ratio at 30 to 50%, but now it's more like 130%. So there's a point at which the debt really matters and I like to say that doesn't matter at all. Right up until the moment when it's the only thing that matters and that moment is closer than we've ever been in my lifetime yeah well fascinating in order to dig into this a bit more.
Jerry would got a minute before the break. Talk about the Fed's role in this have their money policies contributed to this, absolutely because the Fed is the enabler we are not savers as Americans by and large, I mean you'll make me your influence and matter from blue you know continue to grow and become savers and not over spenders and borrowers, but Americans do not have not yet internalized biblical financial practices. So were not savers so we can't we don't save enough to lend to our government so when they borrow they don't borrow from us.
They borrow from the central bank and they do it with newly created money so the Fed is the enabler of the national debt will only come back will continue to unpack this and what point does the debt crisis become real.
What is that look like and how would that affect you. Also, what policy changes do we need to see out of Washington to avert the debt crisis and what's the biblical perspective on all of this Jerry Boyer with us today. Our good friend economist author and teacher will be continuing to unpack this with us. Today's program is pretty recorded, so keep that in mind when you hear phone numbers going to pause for a brief break now, but Rob West will be back in a moment with more moneywise live delighted to have you with us today on moneywise live the national debt now stands at more than $30 trillion in his Jerry Boyer said just a moment ago. He's now getting concerned that at least the potential for a debt crisis is real, what is that mean and what is it look like will unpack that today, in addition to taking your calls a little later in the program. Jerry, you know.
Proverbs 22 seven the rich rules over the poor, the borrower is sleeve of the lender. That of course applies to nations as well as individuals. So who is the government's leave to. Yes, good question. And yet another point. I kinda like to make about this is I'm not sure that this is a personal verse that also applies to government as opposed to a government verse that also applies to persons intricate Proverbs is a book written by King Solomon to a son who's a future prince, your future prince, Ramone doesn't listen to the warnings he doesn't really learn the wisdom of Proverbs, he becomes in overspend or and it leads to the economic destruction of the nation. So Proverbs that this is really a manual for princes so our princes ought to look at it the more we enslaved to not were we borrowing from well a lot of our borrowing.
I mean, there's that central bank which were borrowing from them, which has to be inflationary so that's a big problem, but to the degree that were actually borrowing rather than just creating money. It tends to be foreign governments.
Historically that's China to some degree, it's Japan.
China still holds a lot of it. So we are very vulnerable to other nations saying we like your policy on such and such arena like you talking about human rights violations and were going to punish you because were your banker so we are to some degree enslaved to foreign governments and foreign nations, some of whom have serious evil associated with them. For instance, the government of China. Yes, no doubt about it. Jerry at one point, is a debt crisis become real and give us a sense of what that would look like it becomes real, not at a certain mechanical point like here's the magic bad number hundred and 30% that you GDP your hundred and 50% that's a concern, but there tends to be a trigger and the trigger tends to be essentially a moral evaluation. The world comes to believe that you no longer have the character to repay your debt.
So there's a point at which the British government after the Napoleonic war at 200%, that GDP ratio but they were seen by the world as covenant keepers and so there wasn't a debt crisis and they grew and they paid off their debts.
So if there's a point at which we signal to the world that we don't believe what to say in Psalm 15 he who swear even to his own hurt and change. If not, if the world comes to believe that we don't really intend to pay off the debt, or we intend to pay it off with debased currency which is another form of default when they evaluate our character. That way, that tends to be the crisis trigger what is a crisis look like. It looks like very high inflation looks like very high interest rates.
It looks like mass unemployment looks a lot like we saw the European debt crisis in 2010 through 14, 15, or we saw in the emerging markets during the late 90s.
It's very socially destructive. So what policy changes. Jerry does Washington need to make to avert a debt crisis obviously spending less is one, but one of the others yeah and I would go back but we actually had one ourselves just before the Constitution United States had a debt crisis and John Witherspoon who was the only Christian theologian clergymen to sign the Declaration of Independence and the Constitution, he made the case that we need to back our money with something we need monetary discipline. He saw that there was a moral element to this, we need to restore the moral element when we debase our currency, or when we put debt on future generations. We are practicing unjust weights and measures, and we are practicing a covenant violation. To put that debt on future generations and is not like we did in World War II. Putting the debt on future generations because they defeated the Nazis. That's reasonable.
We didn't do that. We just fueled a spending spree that had no real importance that is morally abhorrent and we have to see the moral element to this. Technically, it means sound money back by something gold, silver, commodity some kind of discipline which it can just print as much as we want it means spending control. That's it.
It's hard but it's simple. Jerry, on either side of the aisle.
I'm not hearing this kind of talk that we need to move toward the sound money that we need to have fiscal restraint when you hear it in pockets, but it's certainly not a consistent drumbeat. What is it gonna take to get to that point yet this point I say there's a bipartisan consensus in favor of easy money and continued borrowing and spending it Benders.
I'm not so much think each party is equally bad, or whatever, but there is hope. That's really for biblical principles. At this point we need to have that but of course if the church doesn't lead where the moral voice of the nation.
If we don't say this is a biblical issue. This is a moral issue. The prophets talked about Jesus talked about a Jesus warned about that accumulation and that not practicing the shipment that he warned Jerusalem, they disobeyed and Jerusalem was later destroyed in a war that started with a debt crisis 66 A.D. they had a debt crisis and ended up with the destruction of Jerusalem, which Jesus had warned about. I know that sounds odd can read my book. If you want you know that detailed out so we need to make that case morally and we also need to lead by example.
I don't think this is happening now and I don't know for sure that it's happening ever. But if we have a few years. I sure hope the church doesn't waste the opportunity here in individual Christians to be ready. Which means work hard, you'll be a good earner be thrifty. Save up continue to give because during hard times. You need all the more to give to the poor, but we should be the people who should be ready so that the crisis does come we can step forward and say we knew this was coming. We violated biblical principles. We are here to help, but help isn't just helping you financially help is getting our nation going in the right direction very well said Jerry. What an opportunity for the body of Christ, the jury, let's go back to this idea of sound money for a moment. Sorry, you actually recommending that the best move for us as a nation is away from a fiat currency absolutely. Fiat currency is by definition unjust weights and measures the word Fiat appears in the Bible as an Fiat looks, let there be light.
That's the Latin Bible because God can create something out of nothing. Fiat money is the government creating something out of nothing but only God can create something out of nothing. So we create money we don't create wealth. We just have to base money that it's almost like the state is taking on divine prerogatives money should be disciplined and it should be back by something so yes I would say that we should get away from fiat currency because we need to go back to the biblical teaching that unjust weights and measures are an abomination to the Lord. They hurt people. They hurt everyone and they hurt the poor most of all Jerry, are you of the opinion that it would take a real debt crisis for us to get serious enough to actually head in that direction as a nation. Yes, I am.
I'm of the opinion that we lack the wisdom and self-restraint on our own to see the date the look ahead and see the danger as a nation and hide ourselves. So I think the church by God's grace might have that wisdom, but I don't think the nation has that wisdom. And that's how it works. God disciplines people got disciplines nation when the founding fathers says will people live forever so we can be punished or rewarded forever in heaven or hell nations there here in the world. So the only punishment can be here in the world.
I think James Wilson said then I think there's a truth to that. So I think that the nation, if it's discipline is something that we need to be ready for and I think it probably would have to be external discipline and God allows these things to happen because he loves us and he wants us to learn so I think the church can prophetically look forward and get ready for this, but I expect external discipline to be the only thing the triggers real learning because we didn't listen on our own well well said Jerry working have to have you back to unpack this a bit further but in the meantime, we are out of time.
Thanks for stopping by my friend, my pleasure. Economist Jerry Boyer check out his book, the maker versus the takers were Jesus really said about social justice and economics will be right back with much more money wise life stick around listening to moneywise line you can find this online money wise live.org.
However, today would not live so if you hear that phone number. These don't call Tuesday with this. There's lots of information ahead.
Looking back to moneywise live or biblical wisdom meets today's financial decisions. This is where we take an hour each day to really look at our financial resources through the lens of Scripture that means we recognize God owns it all. The earth is the Lords and everything in it. That's what the Bible tells us, and therefore worse steward or manager of God's resources were charged with being found faithful living with contentment, providing and enjoying but also giving generously, and then we see money as a tool to accomplish God's purposes that by the way, is an entirely different perspective than what you might hear from the world in terms of the purpose of money. It's not an end. It's a means to an end and here's a little secret. It's most effective when it's a means to an end and that into something other than you. Meaning were looking outward and were thinking eternally. Remember this is not our homework, passing through this life is but a vapor and so we actually have the ability as we manage God's resources to be laying up treasure in heaven. And that's the little secret that we call that the treasure principle that Randy Alcorn wrote about in that great little read and so as we think about our money. Today we want to together try to find God's heart for the decisions and choices you are making our lives or back to the fold North Carolina we go and thank you for calling the redhead I have a father who is 96 years old and he cannot read or write. And last year he came to live with me and my husband and over that year, we have uncovered missing assets 250,000 missing from one bank 495 from another well.
He'll fill out his income taxes and someone dies back and after he completed and turned everything in an ideal amendment where he has a full-time employee, which he doesn't I taxes for vacation rental property that he doesn't know he think about and then the IRS is sending him letters where he doesn't earn interest income is not 93,000 financially hundred 47,000 and he is penalty. Now somebody is paying the penalties because the monies using this money. My mother was an employee at R.J. Reynolds and she's the one he bought stock invested and even from what we can find. They are very familiar may not be attention. It's going somewhere and I can't seem to get any help. He was living with me. I was questioned by North Carolina on I get this team integrity for Medicaid fraud is your father been living and I told him he been a nursing time and I said no he's not living there now is that the yellow time and he doesn't even find a paper he didn't even realize he pays taxes. He has a life estate that he know it's not here and yes I did confront my siblings about Liana's anonymity. I languished on not fixing it. If any of the counts basically look good in their name are you 90 E. that they can be prosecuted out. If that's not a moment of guilt on only what is and I hurt make her mother and father worked hard for what they had and they were on and I am hoping that you can direct me. Have you engaged attorney on any of this. There are attorneys that specialize in elder fraud and I think that's what you need to do is to really begin to try to follow the paper trail figure out exactly world. This money is going and having the assistance of the elder fraud attorney who specializes in this specializes in this.
Obviously, you have to pay them for their time, but I think I could go a long way in trying to chase down exactly what's going on here identifying the source of the problems, whether that's family related or its external shutting that I found getting the Federal Trade Commission involved where there's reports that need to be made even filing police reports where necessary. I made it I think it's time to really dive into this if you visited with the somebody in the legal area early on when I went I discovered I met with one attorney, she immediately looked at it and referred me to a foreign attorney and went and she called hearing and she asked my dad point-blank if he would be willing to press charges against a family member. However, my siblings had told my dad that it was my sign that had done and I said if my son had stolen from Dan. He needs to know right from wrong, I'm not going to stand by and allow a child that I brought into this world the thief and bring them into this world today that and my dad refused to press charges. I let it go and when he came to live with me and I've uncovered accounts that within his name and my mother's name and now one of my extra name on the account with him if it hurt and that he has no money and as far as tracking the attorney that they have.
When I mentioned his name. It took me six weeks to get find another attorney past year to help me because it was a conflict of interest in well this is obviously a really difficult situation. Christine because there's there's your first of all, we don't know exactly what's going on and it's going to take quite a bit of work which is why you referred to the forensic attorney the first place because of the amount of work that go into just trying to follow the money, so to speak. Figure out where it's gone and that's good wire quite a bit of time I would say you should put in as much as you can on your in and then you really gotta decide just how willing are you to pursue this because obviously damaged relationships. You will come as a part of this and you know the key is is your dad willing to support you and is even in the state to be able to do that and if he is not willing to support you continue to find that is going to take a quick break. What you and I finish up off the air, will certainly be praying and asking her money was community well investing is more than just returns. It's an expression of who you are and what you value is the way you invest your money reflect your identity as a Christian that eventide redesign investments for performance and a better world so you can invest with the confidence to reach your financial goals while remaining true to your Christian values and commitments.
We call this investing makes the world rejoice more is email@example.com invest eventide.com. If you're investing for retirement or any other goal you may be wondering if it's possible to enjoy both profit and peace of mind, no matter what's happening in the market. Sound mind investing is a short video webinar on the topic of sound mind investing.org SMI has helped tens of thousands of Christians learn to be wise and faithful stewards in the area of investing profit and peace of mind matter what's happening in the market. Sound mind investing.org losing a loved one the hardest event ever having someone guide the process for helping her new mountains crumble interactive for processing word pictures college illustrations will begin to understand and express your fresh start books toward women who love God's word find trustworthy support publishers with Bible study Scripture like the latest release any prayer during difficult godly kings of Judah got learn more at the publishers.
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I Miriam Neff with wise women managing money and I'm Valerie Neff Hogan what is your financial confidence quotient.
We know that many women lack confidence regarding financial matters and we oversee 51% of all the wealth in the United States. Two important biblical facts address the second Timothy 17 for God has not given us a spirit of fear but a spirit of power and love and a sound mind and Matthew 25 God has entrusted these finances to us trusting us to use them wisely with God confidence we can learn biblical guidelines. We live within our means, invest and spend wisely.
We ask for his wisdom and we learn our competence and confidence is in him and his wisdom and guidance. This firstname.lastname@example.org delighted at it with us today on moneywise live or biblical wisdom meets today's financial decisions as Anna and I talked all fear during the break. She's going to contact the North Carolina office of the Atty. Gen. just poured all of these really heartbreaking details her debt to her dad in these financial accounts that have been drained of financial resources. It's obviously complicated and any time. Family members are involved.
It makes it even more challenging and so would you pray for and as she navigates all of these really tough issues as she tries to honor her dad and seek justice, given what's been transpiring. I'll certainly join you in that before we head back to the phone. Let's talk about our work for a second.
You know, as we think about the opportunity we have two work. Often we subscribe to the world's thinking in this area which would be well work is a burden, and you know I'm not even sure work is ordained by God. And yet we go back to the Scriptures we see that before the fall well. God was a creator, a worker and he assigned tasks to Adam and Eve as workers to tend to the garden and to name the animals so work is ordained by God. Even before the fall, and as we are image bearers of God himself.
A worker a creator where, then, in response to that and as image bearers of him to be workers creating an engaging in meaningful work ourselves, but the key is not to allow our identity to be found in our work. Author and pastor Tim Keller says this if our identity is in our work, rather than Christ. Success will go to our heads and failure will go to our hearts. You know, the desire to do productive meaningful work is in our DNA, and as Tim Keller reminds us we need to remember where our identity lies the Colossians 323 and 24 received the key to successful work is well I'll read it. Whatever you do, work at it with all your heart is working for the Lord, not for men, since you know that you will receive an inheritance from the Lord as a reward.
It is the Lord Christ you are serving. So are you unhappy in your work at the moment. Well, work at it with all your heart, you love your job will work at it with all of your heart. You stated are you a stay at home with six kids well or work at it with all of your hard you have a long commute into the city for a frustrating job will I would again say, work at it with all of your heart. The point is not what were doing. It's how we do it and I'm not saying we have to stay or be satisfied with a lousy job situation. By all means get additional training and look for a promotion or figure out how God has wired you and search for a job it's a better fit. But for now, remember that what's important is your identity in Christ you belong to him.
Your job doesn't define you and we are to work for an audience of one, not for men but for God himself. Think of it this way, Jesus is your ultimate boss, your attitude at work should reflect that knowledge but how could this perspective affect the way you do your job.
What I would say be honest whether someone is watching you are not be on time, complete your work to the best of your ability. Always speak the truth you helpful when Christ is your boss you can afford to help your coworkers.
Even if there competing with you. So look for wings to make things better work and be ready when someone asked you about your new attitude. Be prepared to tell them about the hope that you have in Jesus. After all, our most important work is showing lost people the way to God.
I hope this is an encouragement to you today as you think about the fact that your identity is in Christ in your work is ordained by God are back to the funds we go Cedric X, recalling the redhead under Louisiana and I want to know you you all the resources to bring my wife's credit card. I need the money to build a nursing home and she nodded gradually response to Sage do its do you have power of attorney for your wife. I called one resource. You I didn't even eat of the estate.
Okay yeah well if you don't have a POA you could pursue becoming a court appointed guardian and I think that's really the next what is it you're looking to do. Do you are. These credit card accounts in her name only are they joint credit card my credit card and empty credit card about $500 something and I need that money, no problems.
Well, listen, God knows where your adhere. Cedric and I think the key is for you to try to be found faithful with whatever you have passing through your hands, and I realize I can be challenging at times. So I think right now what you need to do is really go back and look at all the income sources you have and get it accurate accounting of what your obligations are both your fixed expenses but also those debts and we got a really start in the situation like this with keeping the big four I'll call them current.
So you gotta keep a roof over your head will get to keep the utilities paid, you keep gas in the car so you can get to work and you gotta keep food on the table and everything else is really subject to veto, whether there's funds available but we also want to try to make progress toward those debts.
Here's what I'd like to do if you just hold the line again. PT will get your information and will have one of our coaches call you. This will be somebody that will come alongside you free of charge is just our ministry to you to help you sort through what you have, what obligations you have and how you might order your finances in a way to get current and to keep those current obviously the ones that are in your wife's names given her physical state right now are to be challenging and I think is a part of that. You may want to pursue becoming a court appointed guardian. In that case, but Cedric you hang on the line will get your information and see if we can get you some assistance. And God bless you sir. Let's head to Oklahoma. Soon you're next on the program to read it about the bond.
I would like to know if you get the why and where you know it by you that we had talked a good bit about I bonds recently. Just because this is an unusual time. Keep in mind these I bonds are issued by the U.S. Treasury. I standing for inflation, there's two components to it. The fix portion which is zero, basically, and then the portion that adjusts every six months based on the consumer price index well. As a result of what's happening right now with inflation. That portion has driven the annual yield currently up to 9.62% and given the safety of these that they're backed by the full faith of the and credit of the US government makes it a pretty attractive investment.
Right now you can put in up to 10,000 per year per person there electronic bonds. You can't get them through your bank. The only place you get them to your question Sue is that the treasury's website treasury direct.gov treasury direct.GLD you'll open an account there. You could click on the series bonds and that to purchase the electronic bonds through a checking or savings account with an automatic transfer.
Here's the key. Gotta keep the money in for at least a year of these are 20 year bonds mature or have an additional 10 years at renewal.
You can take the money out after a year now. If you pull it out in less than five years will give up three months with interest but still very attractive return on these so the fan you had the treasury direct.gov. If you have liquid money not retirement money liquid money, that's not part of your emergency savings.
I'd say with a one year time horizon. This is a great will be right back on moneywise day with today's program is prerecorded, so keep that in mind when you hear phone going to pause for a brief break now.
Rob West will be back in a moment with more moneywise live. This is moneywise live with Rob West to hear phone number mentioned today. Please ignore that number and don't call us because today's broadcasters were presentation, but we think the upcoming information will help you and make you a wise steward of what God's given so please take back to the phone remind you, even though the kids are starting back to school. Mine certainly have their couple weeks and already here in Georgia it's still summer for all intensive purposes, and we are featuring a unique early reader fiction series called the secret slide money club by Art Rayner for summer reading. It's a fun read.
It's targeted for kids 8 to 12.
It's a three book series that uses humor and adventure to teach children the foundational principles of financial health. Give save and live that it really gives parents a solid foundation for talking about money principles and are even congratulates readers. Halfway through, and rewards them with some unusual money facts so it's written with kids in mind, you can request your copy with a gift of $25 or more to moneywise in your generous donation helps expand our outreach here at moneywise media to share God's financial principles. With others, so you'll just said moneywise.org you'll see the banner at the top of the page you can give to support our listener supported work which allows us to bring you this program every day as well as our moneywise coaches and certified kingdom advisors in the moneywise app that's all. As a result of your generous support. And if we can send you this three book series to teach your kids God's principles of handling money is our gift. What we be delighted to do it so get it to our website moneywise.org click donate or the banner at the top of the page and thanks in advance Ari back to the phones we go Arkansas Steve you're next in the program.
Go ahead sir?
I have a 25 reality retirement and I moved it to the stable several months ago I went off the rails with everything going on corner and get actually prevent you losing a lot of money when things, it shall just wondering how long before I probably need to be debt back into that fund so that he can start gain profit. Yeah well that's a tough question just because it is really hard Steve to make those decisions in the short term. If you want to call me before you made that change. I would've said let's just stay tight your stay put and we've actually seen the market recover quite a bit in the last four weeks in a row.
Does that mean the markets going straight up from here. No, absolutely not. We likely could see further downside, there's still plenty of challenges we have in this economy.
But here's the reality is what we know is over looking over the long haul and how we build wealth and how we overcome the effects of inflation which right now is sky high. Apart from just a real system, systemic problem in our economy, which could we have a debt crisis down the road with that, out of sight, Sherman. There's some big things. We've got to address but I don't see any reason why we wouldn't stay invested right now is a way to really grow what God has entrusted to us in overcome inflation. The problem is the only effective way to do that is with the long-term view because you and I just simply don't know what the short term is going to hold you know when we hit the technical bear market down 20% earlier this year. Who knew whether we were just gonna keep going down to 35 or 40% or we have this four-week rally like we've had now where we basically made up half the ground.
I think trying to pick those entry and exit points in the market.
Will the data just says it's not effective veto over the long haul. So how should you approach this well I would say you know I would probably systematically begin to move back into the market you got at least 13 years toward until retirement and if you don't need the money right then either you're going to continue to work career, allowing it to continue to grow, or even if you start to draw an income. Then, if the Lord tarries in your good health.
Steve even when you get to 65, you know, you still have a decades long need for this money to be working for you, albeit needs to get more conservative over time. A typical 2035 fund would still be you know, probably 70% in stocks with about a 30% allocation to bonds and that's probably about right for you at this point in your life. So the question is how do you reenter the market, given what's happened here in I think the only potential downside here is that you know you could find yourself in a position where you got out, you know, kind of at the bottom so to speak, you miss the rally in the upside, you start to move back in and then we get another down leg and you kinda get whipsawed there with both you know down legs but not the upside, and that's the challenge. So I would say that the best approach given that we just don't know what's going to happen is to begin to systematically move back into the market between now and the end of the year and that way you know you can start working your way into the market now with a properly diversified portfolio, with an allocation it's appropriate for your age and time horizon, but also if we were to see you know what this this rally to be temporary, which most economists and our good friend Bob Dall is a chief investment officer across mark. He joins us each Monday he really believes this is you know a temporary rally were to see another down leg. If that's the case you wouldn't put it all in the market today, you'd kinda do it over the next four months. Let's say between now and the end of the year and then I think the key from that point is to say you know what I've got my plan.
I've got my strategy it's right for my age and I'm looking 15 years out.
I'm not looking at six months or a year because if we were to get into another. With a lot of volatility and some real strong downward pressure. I would hate for you to again, moved to the sideline and try to pick the bottom but after a while after their give your thoughts now that that's very nice and I like to light.
Light out the car systematically and work my way back in.
I appreciate that yeah happy to do it. Steve listen. God bless you abundantly appreciate you checking in with us. We can help you along the way, don't hesitate to reach out a quick email actually to from couple of our listeners. Karen writes to his she says I were looking to move out of our present home.
Our windows are old will we get a good return on our money if we put new windows in her home and then sell it or is it wiser to sell it as is and Karen. I love that you're thinking about this. You know were selling a property. We shouldn't automatically just do all those projects that we've been waiting to do because the reality is, many of them we will not get the money back out of that there are some things that will actually hurt us in the selling process because you know we've actually got to damage to our roof that's resulting in a leak.
And that's good know hurt us or we have some really loud colored walls that need to be painted any things like that or things that we just know are going to return more than actually the cost things that improve your curb appeal. Like some landscaping or in a freshening up the other front yard, making sure you you will get everything ready. And so it to the home looks beautiful from the street and those things make sense but engaging in a major project like replacing Windows which is very expensive in the average home to replace all the windows were talking north of 16 grand new wood window can cost as much a $600 to replace. Just a single window. So if there are inoperable. There's broken glass. There is a noticeable draft, meaning you know there's just human older windows are obviously less efficient, but if there's a real problem where the drafts coming in your home that might be the reason why you'd want to do this.
Apart from that, I probably would not. And you always can offer some sort of credit as needed is a part of the contract. If for some reason the potential buyer raises this issue, but in all likelihood they probably won't.
The other thing I would just offer to you. Karen is to get some wise counsel that God's word is very clear about the benefit of wise counsel in this case I think it makes a lot of sense just to bring in a real estate professional to look at all of the various things you're thinking about help you think about staging. That is how to position the property so it's not cluttered and is not too much of your personal things out so the potential buyer can actually picture themselves in the home as opposed to picturing themselves in your home because there's just actors everywhere on every surface and things like that but also looking at some of these repair projects and saying yeah that would make sense and know let's not do that one, so I would get some some wisdom there from a real estate professional. We appreciate your email today. If you have an email you can send it to us a email@example.com, let's finish with one final email today. This one comes from Marlene. She says should my son speed up his car payments. Her son is 20 years old. He bought his first car. Is it better for his long-term credit rating to pay the loan off early or to pay monthly to show these trustworthy and actually from a credit reporting standpoint, it does make sense to keep that loan around a just because it adds to the credit mix. It's a installment loan which is one of the loan types and that does work favorably for your credit score.
It also is one account that he can use to show that he's in on time. The problem is I wouldn't pay a dime of debt that I don't have to just to get a good credit score if he has the ability to pay it off. And that's not money that he has earmarked for something else or it's not a part of his emergency fund, I'd say let's go ahead and knock it out and then maybe open a secured credit card with an automatic budgeted recurring transaction. You know that he was already planning to do that he can use to establish credit. I wouldn't spend a lot of money paying interest on a car loan. If he has the ability to own it outright.
Even if he's gonna lose 20 or 30 or 40 points on his credit score. It's just not worth it.
Let's not pay interest that we don't have to find Marlene.
We appreciate your email today, very, very much. Well that's good to do it for so thankful to have you along with us today. Let me say thanks to my team today. I couldn't do it without them peddling our phones today was Gabby T engineering today.
Mr. Dan Anderson and our producer today. Amy Rios also providing great research. Mr. rather, Mr. Robert Sutherland moneywise lives, a partnership between Moody radio and moneywise media and it's such a blessing to be able to join you each day. On this program to mine the Scriptures apply God's wisdom and truth to the financial decisions and choices you make every day. Thanks for inviting us into your story. Thanks for trusting us with your calls and we hope to see you next time as we do it all over again right here on moneywise lives. God bless you. See you soon