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August 25, 2022 5:30 pm
With monthly car payments now averaging over $700, if you’re in the market to purchase a vehicle, you may be wondering—should you buy or lease? On today's MoneyWise Live, host Rob West will explain the differences between leasing vs. buying and go over the pros and cons of each option. Then he’ll answer your calls and questions on various financial topics. So, join us for MoneyWise Live—where biblical wisdom meets today’s finances, weekdays at 4pm Eastern/3pm Central on Moody Radio.
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It's now averaging over $700 begs the question, should you buy or lease your score by Rob West. The days of record low interest rates and barely noticeable inflation are behind us, so the decision of leasing versus buying isn't so clear-cut. Maybe it's time to go over the pros and cons. Again, I'll do that today it's on your calls at 800-525-7000 800-525-7000. This is moneywise live biblical wisdom for your financial decisions. Okay, so I mentioned that monthly is our way up as is inflation. But there is also another factor to throw into the mix and edits that used car prices are way up to, especially late-model vehicles with low mileage. All of this is making the idea of leasing a car a bit more palatable for some folks as inflation squeezes the monthly budget they need to cut costs becomes more important. Before we get into the nuts and bolts of buying versus leasing. However, let's understand the difference obviously buying a new car is just that before you can drive it away. You have to pay the dealership every last nickel of the cost upfront and these days, that's a whopping figure.
Of course the best way to do this is with all cash upfront but that's getting harder to do. That means most people have to finance the purchase of a new car.
Ideally, while still putting down as much as possible to minimize borrowing.
Unfortunately, there are a number of sites you can check out to get the lowest rates in best terms for an auto loan. These include bank rate nerd wallet driver and lending tree. Now, what does it mean to lease a vehicle you might compare it to signing a lease for an apartment, except with an apartment you don't have mileage restrictions. The lease gives you use of the vehicle for a set period of time. Most leases run 36 months unless you pay the entire lease amount upfront. You'll make monthly payments when the term is up, you have two options.
You can hand back the keys or purchase the vehicle there. You probably have some negotiating power because the dealership will probably want you to buy the car so they don't have to deal with it, but most people turn the car back again and that means they give up any equity, the vehicle may have. Still, there are a few advantages that come with leasing a vehicle.
The big one of course is that the monthly payment will usually be lower than if you purchase it. In some cases, leasing a new vehicle may have a lower monthly payment, and if you buy a late model used one with a lease you're not paying down the principal on the car loan. Instead, your lease payments are really just covering the normal depreciation of the vehicle for the life of the lease. That's a real attraction for some people getting to drive a newer car for less monthly outlay than with buying a used car plus some people don't like the idea of having to sell a car when they need a new one. That's why most just trade the men usually for less money than they could get if they sold them on their own with a lease when the term ends, you just drive back to the dealership and hand them the keys a couple of other advantages to leasing you may be able to deduct some of the expenses associated with it. Especially if you use it for business and if you typically drive the same number of miles each month or you don't drive much at all mileage restrictions shouldn't be a problem but leasing definitely has a few downsides will always tell you to keep making monthly payments to yourself. Once you pay off a car loan that allows you to make an even bigger down payment when buying each new car, eventually getting to the point where you can pay all cash upfront well with leasing car after car that never happens. Remember your lease payments are really just covering the cost of depreciation for the dealer. When the lease is up. The dealership still owns the car you've accrued zero equity also with a car lease, you're usually limited to 10,000 miles a year go over that and you'll be head with big penalties that could be a real problem with the length of your commute changes or you want to finally take that big cross-country vacation as well.
You will be charged for normal wear and tear of the dealership will go over the car with a fine tooth comb. When you turn it in and charge you for every tiny scratch or doing so while leasing may seem a little more attractive these days. I wouldn't recommend it for most folks still the better option. In my view is to buy a used car, perhaps a few years older than you would have before prices went so sky high are here because her next. 800-525-7000 around Weston will be right back much more with us today. I moneywise live biblical wisdom for your financial decisions we love to hear from you would get slides open 800-525-7000 is a number to call its 800-525-7000. Let's begin today in Louisiana K thank you for going to redhead all yes ma'am you have a good amount as many aiming like Frank savings account in one bank checking account about 30,000 or less. Now, and I'm just wondering what it paid off.
I won't have any bank and therefore have no credit, no credit because I have no credit card wondering what option yes I get a credit card. Well first of all okay if anybody could use a credit card responsibly would probably be you just based on your description of all the things you've accomplished by 28 you got multiple savings accounts. It sounds like you're managing your money very wisely. Living within your income, which is how you had the margin to accomplish these things and you're going to have your home paid for just a few years, that's incredible. So yeah you should maybe be hosting this program in terms of the credit card itself. You not on the problem with credit cards as long as we can handle money wisely, which includes only using the card for budgeted items and if we can't deciding that working to cut it up because if we use it beyond our means and we don't have the ability to pay it in full and we shouldn't be using it. It's really just a convenience factor. Perhaps something to use the other rewards are nice but really it's mainly about convenience so that is a way you're going to begin to establish credit. You may have enough credit to get ice and unsecured credit card because you have a home and a mortgage that you been paying on time if not you could look to what's called a secured credit card which is just a stencil, your credit card read put a certain amount on deposit with the institution they give you a credit limit up to that deposit, you would charge against it and pay it back each month just like you would with an unsecured card they just have no risk, because if you don't make the payment. They can take the money from the bank that's on deposit but if you pay on time. They never touch that money well that's good to be reported to the Bureau every month as an active account with you being is an on-time payer and that on-time payment every month with a revolving account which is what the credit card is plus your mortgage being paid on a timely basis should give you a better credit mix. A low credit utilization, which is the balance versus the limit and you get you well on your way to boosting that credit score but I would just continue doing what you're doing and possibly add this to the max, but again only use that for budgeted items.
Don't let the fact you have a credit card change anything with regard to how you know you go about conducting your monthly expenses.
Does that make sense. The fire will go on without paying their that many I want to know how to make it more so, what would be the time horizon on this K when would you cut a target that you would want these funds available either for some of his caretaker like you to be used for his benefit or to be able to hand off to him when he's an adult frankly down the road, how are you thinking about the time horizon. I met John and with all income Right.
I wouldn't want to type that can he really needed it may be 21 years.
I know about it and Taken what type of account is it in the house.
The account titled custodial account in my name, but for his benefit. Well, I think the great thing would just be to get this invested with a long time horizon because that's really what it is, how much of you know my me asking is in the account that now because I'm probably planning and well yeah okay yeah very good so out one thing you could do would be to use one of the Robo advisors like betterment to the Schwab intelligent portfolios essentially what you do is answer a series of questions about the time horizon.
The goals and objectives, risk tolerance, and then it would automatically generate what's called an index portfolio. So it's a portfolio of exchange traded funds that mirror the broad market indexes so you just cannot capture the broad moves of the stock and bond market largely stock in domestic and international stocks, large-cap and small-cap small allocation to bonds but the great thing is every time you add money it's automatically rebalance it's automatically invested and rebalanced, and that's free, there's no transaction costs and the ongoing annual fee to do this is very low as well. It's about 20 basis points, or 1/5 of 1%. So it's a great way when you're kinda just getting started something less than $100,000 for this money to be managed in an indexed approach where you're not trying to pick the winners and losers, individual companies, you're just kinda capturing the broad moves of the market which there's a lot of data that says that's a very effective, perhaps the most effective for many folks way to invest and it's very cost-effective so that would be one way to consider a going and again it's betterment or Schwab intelligent portfolios of either of those could work well for you.
You better be ETT ER INT or the Schwab intelligent portfolios, which is there Robo advisor solutions an automated solution, but using a very powerful algorithm very low cost and could be a great solution at RA I go, what you think about like rotting well for you or for this account with your son. Yeah, I would probably use the same approach for yourself. I try to get money into an IRA, you can put it up to 6000 a year into an individual retirement account or a Roth IRA, and I'd probably use the same approach with with Robin Hood. You typically can try to pick the individual stocks the llama to choose the stock and that's that with the challenges we are just getting started number one you gotta do your own research. Number two, you're typically very highly concentrated so all of your investments are at the risk of one or two or three companies will if they're out-of-favor have a bad quarter that can really work against you in terms of performance, so a better approach is just to say I'm gonna participate as the overall market rises and falls and I'm an account on the historical trends that over time, it's good to be up and I would say that based on all the evidence that this is going to be the very best way to build wealth. So I would actually open a account for you. Perhaps an IRA were taxable account at the same institution for your son and then just use the same approach, so hopefully that helps you. Can we appreciate your call and thanks for checking in with us today. Let's head to Hollywood Frank give me a question and I'll answer it. On the other side of the break all day. I will really what it is about the car that I had family 2021 and I got I got 50,000 miles on it by 330 a month and I'll tell you that little door you call on which I just put five grand to fix the carpet and paint. I'm going to sell it, but I'd like maybe 2200 a month. My name is let's do this so you hang right there we come back we'll talk about that lease and your co-op should you rent it out.
Where should you go from here. That plus you questions 800-525-7000 right back with us today and moneywise. Take your calls and questions today at 800-525-7000. We have some lines open if you're struggling with credit cards nickel debt or other unsecured loans. Don't know where to begin our trusted partner and underwriter here at moneywise. Christian credit counselors could really be a wonderful resource for you.
They offer a debt management program that can get you out of that 80% faster while honoring your debt in full. If you'd like to learn more, including getting set up on a budget, reducing your interest rate. You can learn more Christian credit counselors.org back to the phones we go Hollywood, Florida Franco just before the break you were saying that you have two questions. The first part had to do with the lease understand your paying $330 a month for a Toyota Camry.
When that time comes due and I guess 23 months. Are you wondering if you should buy it out. I think around 16 digital value and you will not likely to around 30 and left.
I like football money down today gave me what I paid for my June 19. They had no cars and a cup. I'm not a big fan of leases but I think it in this case, especially with what's happening with car prices.
So, this could make a lot of sense for you to go and purchase it. Even though the cars depreciated.
You may be able to get it for less than it's worth, especially given where prices around right now. The dealer probably doesn't want to hassle with the you know the selling the car and to someone else. You don't want the hassle of buying another car. Especially at these levels, you probably like the car because you chose it and took care of it and by the way, Camrys are great, reliable cars.
If you didn't take care of it. And there's been some damage or you've exceeded the mileage buying it gets you out of paying those penalties and so what I would probably do is had the Kelly blue book.com PBB.com or Edmunds.com just to find out what the value of the vehicle is and if the dealer wants the blue book value might start the negotiation with I'm here right now and I'd like to buy it. We both know that's worth a lot. So what's the best you can do and see if you can get this for an attractive price. If you can, I'd probably go ahead with it in the future I'd love for you to save maybe a continue making that lease payment to yourself and try to buy with cash in the future, but I genuinely generally like that option as long as you can negotiate a good purchase price right co-op deal with that right now I fly to California. I picked it up and thank you. I lost one months rent. I like the lady trash that I had to fix it right granted, but now I was solid but I said you know what if I get 20 I get your 50,000 KI. I'm not upset me five years all I have a kidney out.
I gotta make sure I don't go to that money.
At this time. Goodbye ready like top ranking California like 20 month and I'm only paying 847 with maintenance and taxes so was about 1200 a month I can pull in her more and I don't think I want to do an annuity with that because it's risky and that'll keep me going for a while but it and I I'll 12,000 on credit cards, but I took a loan from Bright guard to give me a variable because I didn't take the money and put it right back in the old me. I think I would get on a 2+ endemic didn't explain it right. I had to get the money and then take it out put it in. I would've been able to stay out of fix whatever I borrowed on it now.
Six grand co-op by Frank you know I think as long as you're willing to be a landlord. It's a little more challenging given your you want one side of the country and it's on another's. As long as you got a plan for that to keep it rented.
Keep eyes on it, keep and maintain properly.
It's not little easier.
Obviously with a condo than a single-family home, but if you can that that kind of return after fees and expenses and so forth, that would be great because you know typically I would look it up if you got 1/4 of a million out of it. I would look at 4% withdrawal rate the year which would be $830 a month and if you're pulling in 1200 a month plus your asset is continuing to appreciate.
I think that makes a lot of sense. Again, as long as you can do it from the other end of the country and you're up for the you know just staying on top of it and as you just experience there can be some downsides to this which is somebody you didn't take care of better moves out in the middle of the night breaks the lease may be gotta evict somebody muse have to know what you're getting into. But if you account for all of that, then I think this could make a lot of sense for you. Continue to build value. Supplement your income and let's really focus on limiting your lifestyle and taken whatever extra you have every month and paying off that consolidation loan Frank, thanks for your call. The Northbrook, Illinois, Claire, how can I help you both in our late 70 trust test documents lately don't have any children. Trust documents were written about 15 years ago and my question is when we open a new bank account. It is better for example, when we open a CD picked to each one of us open a CD for half the amount going to put in the bank and I trust name or should we put it in a joint account. I'm just thinking of if one of us should pass away how easy it would be for the other person to have access to the funds in the joint account. Obviously, that would be fairly simple and you don't need to do anything else in the surviving spouse automatically has the ownership.
If there's particular provisions of the trust so that you want to be in effect here for this particular account of this CD. This bank account, then you would want to title it in the name of the trust which is going to allow for the, the successor trustee to step in if you know both of you are incapacitated or you know, even after death. But if it's fairly simple and you just want to make sure the other one has access to it. You can absolutely just open a joint account and I have it in both of your names and it would automatically transfer to full ownership of one of you passed away so I think either option will be good. It really just comes down to whether or not the provisions of the trust. You want to also apply to this CD and if not then I think the easiest is just open the joint account where we appreciate you checking in with us today. I got bless you and call us back anytime you have further questions. A few lines open today as we apply God's wisdom to your financial decisions and choices than ever to call 800-525-7000 Rob Weston were delighted to join us today will take a quick break with back with much more just around the corner. Don't go anywhere with us down moneywise. My last heroes taking your calls and questions to quit one line open 800-525-7000 as we head toward the end of the month. Rounding out summer.
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I don't know if I should consider painting right yeah well it's good question. You know it's generally a good time to get a new car. This might sound extreme, but when the repair costs exceed the cars value or one years worth of monthly payments know an older car.
You typically don't have those what type of car is it and what year 2010 wagon payment okay yeah so my team is telling me that you know prices ranged is pretty wide range are 6500, all the way to 11,000 depending on the mileage, conditions and features of your talking about a repair around $1000, maybe a little more. It probably makes some sense, given what's going on in the car market right now with used cars up 16% year-over-year. And you know they're just sky high right now because of lack of inventory so this is not a good time to be buying the car, so I would probably if you got an independent mechanic you trust it says listen if we put this kind of money in it. You can get you know some some good mileage out of it.
Moving forward, it probably makes sense given that you $1500 versus a vehicle that's probably worth you know somewhere around seven or eight grand maybe more, you know can make some sense. Obviously, if there's, you know, the mechanic feels like. Can you confirm this. Maybe with a second one that this is just the beginning of a whole series of repairs are there something major on the horizon that might change things but just given what's going on in the housing market. If you can repair this and drive it for a lot longer. That would be good at least given couple more years out of it like he only take it work and back okay so that a good thing and you said that your team right now. The value is like now the 11,000 and I yeah.
So that's the range and of course that's going to come down to the condition in the mileage and the features and so you could go to K BB.com that's Kelly blue book ABB.com or Edmunds.com EDM you NDS and you could put in the year the make the model the mileage the condition any features that you have on it. It'll give you the trade value the private sale value so you always know what you're working with and hopefully that will help you make a decision okay. I think it might help thank God bless you Karen in Glenview, Illinois, go right ahead. How can help you taking my call.
Okay so I'm for single, never married, and I own my own condo that I had to go on disability 10 years ago so I've been living on Social Security which is okay. A friend of mine told me that I should. I have a will that I made out when I had first gotten sick. She said that I should have a living trust as well and I'm not sure if that's revocable or revocable. But she said it costs about $2000 to have that put together and I am just really to me that seems so unfair and I wondered because I had done my own durable power of attorney for healthcare and just took it off the computer form, but I don't know anything about a living trust downlines. Hoping you may be able to get to one for more like 1500 with the could be 2008 and tell me the reasons that she was putting forward.
Why you need to trust you know there are some advantages to a trust over will.
But not everyone needs one by any means. What was she trying to accomplish for you if I don't have a living trust that it would go through probate. I investment worth 40 x 450,000 common and I guess it's the bulk of that and I own my home for about 150,000 have a living trust to go through probate when that's true with the exception of those investment accounts you can name a beneficiary on those were beneficiaries and they can be individuals or you could be a charity or ministry, and that account which is you said is the bulk of your assets would pass outside of probate directly to the beneficiary or beneficiaries so the will would cover everything else it would go through probate. A probate court in a wooded point, executor, and the their decision will be made based on your wealth on how to distribute the assets would be part of the public record.
But I don't have a problem with that I'm in. That's a an efficient process if you wanted to control over those assets beyond your life or if you are incapacitated if you needed to protect them for a minor child or lifelong dependent. If you wanted all this private and out of the public record to mean those might be reasons to use a trust, but in the case of the your situation.
The will covers everything except the investment portfolio and that would be handled by having up-to-date beneficiary think it would be okay to find something on the Internet that download living trust and spell that I would write anything against that you understand you did that with the POA. The trust gets fairly complicated in blessing you want to do is be depending upon a trust that was not valid for some reason you know for your estate planning.
I think again I don't see necessarily a reason for it here and you could put your whole minute and things like that but you know this long as you have a valid will the probate process will work for everything for except the investment accounts and in bank accounts which have named beneficiaries.
So I'm just not sure what added benefit you get with the trust. But if you're going to do it for any of the reasons I mentioned, I would use an estate attorney and spend the $1500 to do it. I didn't want to assure Harry to do what and why necessary and if you do, do it. I wouldn't use an online tool. There's just too many things that can go wrong there. This is my opinion. To do it. Let's do it right. Otherwise, I just rely on the will and the beneficiaries that sound okay when you chose. Yes, I would do an estate attorney so I'd had to our website moneywise.org and click find the CK and then when you contact the certified kingdom advisor just asked for a referral to a godly estate planning attorney, they would all have one that they work with and could give you possible even a couple of recommendations. You can check with so that's moneywise.org and click find a CK.
Probably not to find certified kingdom advisor whose estate attorney in your area. They could all make a reference Karen. We appreciate your call.
Thanks for checking with us. This is moneywise a wonderful, great questions coming up. Don't go anywhere.
Join us today and moneywise Rob Lester hose we covered a lot of ground already today, but here in the final segment will see if we can get to as many questions as we can with all lines. Today, Chattanooga, Tennessee, Michael, you're next on the program grid had a unique issue okay 2014 at age 60 I started a Masters degree in order to teach college level in my career, 2017. A started making payments on the loan based on the page you are, which was $100 a month. While the loan is approaching $100,000 then be 70 next year so the college where I teach because of the state goal. We have loan forgiveness of my Hundred 20 payments without missing any so they'll be 2027 and so what's the best thing to do. Do I need to like calculate how much $100,000. You know with my salary my educator salary early and I get that paid off or just wait out the loan forgiveness are no sure yeah you know I'm in there perhaps would be something to disagree with this. I don't have any problem with you taking advantage of the loan forgiveness for this specific program that your school supplies, or applies to. I have issues with what was done yesterday with regard to the sweeping loan forgiveness that was done for anybody making as a married couple less than 250,000 a year which got penalizes those that saved and paid it for it not to mention that it's inflationary it's going to cause the price of college to go up and just a whole host of issues, including how it was done just legislatively or with the lack thereof so but with regard to this particular program and in terms of public service loan forgiveness. That's an incentive program that really is driving toward a need that exists, and if you qualify for it. Michael, I would say take full advantage of it. So I would send your scheduled 120 or 10 years worth of on-time payments and if there to forgive the rest I be grateful for it. You obviously have a lot of debt here but you know you are doing your part and you know I think that's what this program is for. So I would say at least from my standpoint ethically and biblically, you'd be perfectly entitled to do so. Thank you Michael, appreciate your call to beautiful Brentwood, Tennessee. Lynn, thanks for calling the redhead how wonderful it help me prepare for retirement Sunday and thank you for assignment thinking a question about the real estate market.
In your opinion, I have a single mom and have a son he will be graduating in two years without any debate when you graduate your family happened about a year to get her around 650 and I could sell it for 900. My question is should I sell it and make that 250 available or not. After fees and meeting cost in ranch incontro I and many on rent.
Now you have to leave in two years are what you think it be like day the market continues to praise on and I don't want to write, I may want to years. Well, obviously the ultimate answer from a financial standpoint would involve the prediction of the future which clearly nobody knows for sure what I would say is I think there in Brentwood, Tennessee. You're in a particularly hot real estate market. It's been hot nationwide. Been really hot where you live in so I would see a cooling of the housing market. We've already seen that with home prices dipping ever so slightly. Last month, but I think in a stronger host a market like that I would have confidence that your lease can maintain the value of the home that you have not seen a modest increase if there was any disc line. I think it would be slight and what you would pay over the next couple years and I would say just paid $2000 a month in rent. You know that's a 24,000 year 48,000 over two years is a lot of money and not to mention the hassle of moving twice and the cost associated that with that as well. So although I don't know the future I would say for me, I'd probably stay put and just plan to sell and take advantage of the growth that you've had over the last several years which is phenomenal. When you sell it and you're ready to make that move to your new state. I'm sure happy to do it.
Lynn, thank you for going in today. We appreciated out to Chicago and Andrew, thank you for calling your ahead and I haven't the largest track of everything around $50,000 and got one more that can be a lot more money that I ever had the honor to be a man. I don't know anything on my card. I have a mortgage which is 2.5 times and I very, very manager will I'm planning on putting some of it into my binder maxing out for me my way fighting intent #1K management yeah great Andrew Sue commission check that tells me you're self-employed, so you are don't have access to company-sponsored retirement plan. Is that right you might okay I about 2.5 okay what percent of your incomes going in okay plus their match yeah okay so I think the first thing I would do is max that out so your putting in the maximum every year.
I do some planning with regard to what your ultimate goal for long-term retirement savings accumulation. So you have a good sense of what is your ultimate target where you headed and you know, to the extent you're just now coming into this real surplus need not had that previously.
Perhaps you be a little behind unsavory for retirement or maybe not, but you need to know that and define your finish line so that you know you know what you're ultimately trying to put aside because the goal is not just a mindless accumulation of wealth. I think we need to pray through our ultimate savings goals in light of our values and our priorities and say Lord, what is that finish line both for my lifestyle. The monthly expenses and what lifestyle were living and our long-term accumulation and to the extent you're on track for that. Well, that frees you up to what you're completely debt-free and I got a penny more in taxes than you and I can increase your lifestyle. The only bucket left after you've eliminated the grow get our SKUs and what you've eliminated the old category in the live category and you've defined enough so that were not growing any longer is just increasing your giving up but to the extent you're you're trying to continue to save for the future.
Beyond that 401(k) and it's in light of a plan that's well thought out.
I would say you know just put that money to work. You could either just open a taxable account and and invest there in more of an indexed approach abroad in a market approach to investing at a low cost of just buying some broad market indexes you could look to move into another asset class. So maybe over the next couple years is removed from a buyer to seller's market.
If you pick up a piece of real estate and begin to convert that into an income stream over time as you convert to a landlord. If you have interest in that area and I think those would be kind of two options that I would look at in addition to you, perhaps getting more of this money into a donor advised fund so that you can minimize your tax burden and then just have fun giving it away.
I think any one of those three could be great. My tax bracket or minimize yeah so what I was saying is you may want to me you mention tithing on it and that's phenomenal but to the extent that you've got to know your increasing your getting a whole bunch of income here now in a short period of time as you get these great commission checks. One option would be to look at if you didn't know where you want to give it all away right away you could use what's called a donor advised fund which is think of it like a charitable checking account as you make a contribution into the donor advised fund you get a tax deduction. And as long as you itemize which at these levels, you probably would. Then you could reduce your adjusted gross income with certain limits based on the contributions you make to the donor advised fund and then essentially that just sits there in your charitable checking account until you granted out to any ministries or charities and you could do that right away or you could do that over the next several years. That's up to you but it's called a giving firstname.lastname@example.org that's the National Christian foundation that would be another way to just you reduce your tax liability and get a lot more money going in the kingdom causes.
I love that awesome yeah MCF is National Christian foundation. You can set up a giving fund in just a few seconds. Actually in CF giving.com and Andrew. We appreciate you checking in with us to DeKalb, Illinois. I think our final color Christian I get just a minute or so left hello I quick question though I have that little bit. I have my credit card that it 7K.
I'm 20 years old.
I got my degree. It also had car payment and the car is worth right now 27,000 and I owe about 15,000, and I was wondering if I should go to cart get debt-free, whatever that money I have left a particular car around $10,000.
Learn how what you think about the challenge right now Christian's car.
Prices are just sky high.
So now you should get that sky high price on the sale, which means that if you're maximizing it on the sale then you can afford to pay a little bit more if you can find a good older reliable car that would allow you to sell this $27,000 car and pay off the credit card debt. I would do that. I just do your homework to make sure you can get what you want and then you could find that new car that allows you to get in at a price point that frees up the money to pay off the credit card debt. But before you do that get on a budget and make sure you can live on it for at least a couple of months because I don't want you to pay it off credit card debt and only to have it come back down the road. Thanks for your call as I was, a partnership between Moody radio and moneywise media want to say thank you to our team today Gabby P. Rios, thank you, Ryan Hansen and Jim Henry. See you tomorrow