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May 15, 2020 8:03 am
Pandemic were not able to get everyone into the studio today so phone lines will not be active but we hope you benefit from the best of moneywise live in a recent survey shows that nearly 1/3 of Americans have no emergency savings. Perhaps that's explained by an old English proverb. Anyone can make money wise man to know and that's another way of saying maybe your, succeeded by euro and the solution is reversing how post from West sits down next Monday expert Ron answer that question. Some conversations listeners that were essentially not more controlling your next Rob Ron blue is the author of master your money a step-by-step plan for experiencing financial contentment and I'd be tempted to say the runs forgotten more about Monday then will ever know. But I doubt that's the case I would tend to agree with you there.
Steve Rod's such a treat to have you back with us on moneywise live well. For me to be a part of interaction ministry that you are having millions of people are so significant. Well thank you and today were talking about a subject that is so critical. I know you've taught on this for many many years. It's central to your book nastier money and it's really the whole cash flow discussion, but you really teed this up and master your money by cookie jar illustration what can the cookie jar teach us about cash flow right after the depression and people typically through the 40 days they were paid in cash.
Many times, and what they would do would be. They protect cash and they would put an week and so they knew how much money was left where they were financially but when the cookie jar is they were down spending and that was the important principle is that there is an answer to the pre-credit card society. So there was no option when the cash was dollar cash is gone. Yes, and so that simple of putting money in the jar and I carried it on to our children with an envelope system like did become more complex as time went on, and more categories and we want to teach our children allocate money and spend money and save money, and so forth.
Should we use by cookie jars that were five envelopes principles don't lie.
Let's talk for a moment to use it with your kids use the envelope system and use the envelope system. I know our team does as well. It's it's a proven system to approach cash flow but you have to modify it according to the person in the case of your kids, you said there were five so that those were well we were at one time for the children that rehab for the year.
Every time we put money in workers once a month they would take 10% of the time and never get better church today had experience of tithing literally tightening with cash. Technically what we had to save envelope and content percent also to try to teach them to save them. So the question of what is for the unexpected themepark or something and I wanted to take some money out. Or maybe I'm saving for tennis racket or bicycle or something hoarding. It was saving for something and then we had a gift envelope which was buying gifts for one another for birthdays and Christmas and special events and then we had a state budget which was maybe the most significant because Wells parents spend a lot of money on close and so we allowed our kids to shop with the cash to buy what they want and we found, for example, one child that I was closer to a hoarder. He was happy with the teacher and some overalls child. He wanted polo shirts. There unique personalities came out now. Dr. Rob, I didn't realize we had three girls but when they became teens. We had an envelope from makeup or that her well here we are with Ron blue today discussing makeup and also this is moneywise live these Rob blessings more and more from Ron blue the financial wealth you leave behind could be the best thing that ever happened to your loved ones or the worst in splitting hairs, giving your money and things to your children without ruining their lives. Ron blue explains why it's important to make these decisions now, instead of forcing your heirs to do it later. Splitting heirs will foster a real appreciation for the precious resources that God has entrusted to you, and it's available.
Click the start button moneywise live.org if you need investing guidance, you probably want help it's grounded in God's were taken by sound mind investing since 1990. SMI has helped tens of thousands of Christian supplier wisdom and confident in their investment investing experience how much you handling that you can learn will still carry out investing more information about SMI and financial wisdom for living well is available online. Sound mind investing.I'm talking with people about their finances, and you are still styling on a motivational sink like a motivational speaker yes but icing is still how would you motivate me to manage my money better hold on 301 in these challenging and no overspending with my in body you can spend more and getting motivated to The free online guide when you visit. Crown.org many minute Crown financial ministries do you feel like your hands are tied with dad preventing you from serving God. If you have credit card debt. Christian credit counselors can help through our debt management program we can get out of credit card debt. About 80% faster in your debt info. For more information on how Christian credit counselors can help visit Christian credit counselors.org Christian credit counselors.org or call 800-557-1985, 800-557-1985. Looking back, you're listening to wise, live with your host Rob West yesterday discussing your cash flow whether your government or business. Or it's your family it's important and it's vital that you know how much money you have coming in and how much money you have going out run just before the break we were talking about the envelope system in light of our kids. You are explaining how you and Judy handled that with your kids and you made a fascinating observation that our kids are different how the money is different.
I've certainly experience that I've got twin girls that are 11 one of them is very into what she wears, the other really not so much. I won't say which one is it's but here's the point though and that is that so often people say a spending plan is limiting or husband-and-wife. I'd say you're just trying to control me and yet there is real freedom within the envelope.
Once the amount is given to allow that to be expressed.
However, each person chooses right to reallocate the income according to me and your goals your values your objectives, so it if something is very freeing because you know where you are yes important concept if you don't know where you are you how to get where you want to go so important. Well, you highlighted in the book run three principles for this envelope system to work. The first principle is that the money is always allocated so talk about that piece of it having every dollar determined according to your plan.
Well, that really important principle, because we all need. We all have things we desire reallocate it. For example, I think vacations are a classic example if I have a vacation budget and I put it in there that when I go on vacation. I don't know guilty about going out to eat, or whatever might be while I'm on vacation that was money that was planned to be spent. One of the greater so reallocating the money is not limiting free principal which is cash flow management and when the envelope cookie jar is the year that you know when to stop spending because you spent your budget and then 1/3 principle that you always have a current awareness of what your financial situation was relative to your client situation that was needed to see how much money was left in the envelope in the cookie jar in the bucket and we just had a granddaughter that got laid off from work because of this virus and talking to her mother last night and how she's going to do financially to get a lot. She has no saving she figure she can live for the next plan for the unexpected. And that's what this table will show knowing where you are going when it's time to quit practical fundamental principles, but in this day and age there is the concept of what replace the cookie jar. In some ways in that's credit cards.
How do you recommend people limit their use of credit cards or or approach their management of credit cards well. I probably most people would use some type of online type system. I think you get one of moneywise that people could use. And so it becomes more digital in its management but the principles are still the same as you have a budget place to spend your money and you know where you are at any point in time the computer can be really helpful and controlled.
If you're like me is good to know where you are.
Otherwise, you don't know how to get to where you want to be.
Of course you said that just a minute ago. That's where I got that information. So be careful with your use of credit cards and I've also heard you say in the past that you should use credit cards not to expand your budget but just as a comfortable way a convenient way to spend the money you already have designated as is that correct. The point being when you credit card to pay them off every month.
There are convenience items are not borrowing I and convenience versus borrowing or using them because it's a lot easier to manage your money to spend your money, nobody pays cash for an order that you check communication is key is to have that you speed in the context of the plans of the monies available to pay it off in full at the end of the month you'll never be able to do it without the spending plan run. Let's dive into the mechanics will hit these quickly before we run out of time today. There's really five steps to implementing this type of system, take us through number one.
Figure out how much your how much you are spending so sometimes it takes as long as two years to figure that out.
You wanted to figure out how much you're spending to live right now in as much detail as possible, but not down to the penny so I should just the people shoot for about an 80% accuracy in the first attempt. Technically it is you need to record what happens like a checkbook and then when you write a check and deducted from the amount you can see how closely you are what you thought you were going to spend and then third after you, gone through this analysis and observation and reevaluation you establish your budget and now you've established that according to your history and, according to Thompson and desires so it may take three months without it may take a couple years and don't be hard on yourself and say you're in a process and and it's a process of learning and so one of the greatest ways that you learn is by the mistakes it can make as part of the learning process so if you don't have a plan year going to live a life of worry and concern because you just don't know where you are.
You don't know where you should be so how do I control my spending here something like a mentor or something like that and tried to step five is what you been operating on a budget, you need to evaluated and revised periodically changes and here's what'll happen if you do this long enough, all of a sudden you have built habits of spending so that your budget doesn't vary much from year to year because you kind of got the level of spending that you are comfortable with and meet your needs, but give yourself to three months, or years begin planning began controlling again and reevaluating and begin the habit of living within a budget for each of those categories so such sage advice and I think one of the final points.
There is stay flexible. You may need to make some transfers among those envelope from month to month.
This will really help teacher good friend and author of mastering your money. Among many books run with us today.
I moneywise live art line and bring some calls. Please. Here's a great deal more about our money than most of us imagine Jesus is more about our use of money and possessions and about anything else, including both heaven and hell in managing God's money.
Author Randy L breaks it all down in a simple, easy to follow format that makes it the perfect reference to look you're interested in gaining a solid biblical understanding of money, possessions and eternity managing God's money is available when you store moneywise live.org you know not to do with your money in uncertain times like to note ways to trim your budget amid the coming when you get those answers much more subscribing to the moneywise expert articles leaving your subscription free moneywise. The magazine in my life – here is what we truly believe will we do not believe we do not believe that we have been free, and I think this is so important.
This is very important because it was not meant to get here from the back break into that area of pain for years and they will drag us back. Everything will turn any longer. Think this program might 768-5768 moneywise live and we talk about our telephone number. Often, usually because we live today reported her mention of the phone number please don't call us. You can find us firstname.lastname@example.org I got to Green Bay, Wisconsin. This is the time your to go to Green Bay, Wisconsin. Vincent what's on your mind. How can we help user I think my call.
I really appreciate that.
I got 63. In the end of April and we sold our company and after taxes and everything we netted about 250,000. I do have a how that we bought that we all about 120,000 on it, hundred 65,000 loan, we have a Honda pilot that we all payment on about 30,000 Interest-rate matters about that.
I think you have 4% and I don't know if I should wear completely debt-free and I don't know if I could draw my Social Security are not really looking for some yeah that's and that's really helpful to clarify a few things you said your 63 you are still working as I write. I know I sold the company.
I'm just doing part-time work on the side little in common. My wife is 56. She's doing a little work on the site all right is the work that you and your wife are doing is covering your expenses. Are you drawing from savings to supplement your living expenses while the bought the company paid $1700 a month. So with that, and hopefully the income we both have, I think we might be closer okay. I don't really know yet that 1700 a month. Consider continue for some time. It should okay what other savings do you have both emergency fund as well as longer-term retirement savings long retirement we probably have about 16 maybe 70,000 IRAs and I have another like 20,000 coming on insurance thing to get paid for not using and this gentleman will pay us another hundred and 25, 30,000 in the pan out or not, what was that right now okay alright well you know from my standpoint, I'd love for Rhonda Wade as well means this is a unique season where you can continue to work by delaying your Social Security through the work that you have. Plus this money that's coming in from the sale of the business on a monthly basis that will allow you to let the Social Security continue to build so that when you do start drawing it. You will be able to do so, and obviously a higher amount. If you were to take it at 63 with full retirement age being 67. You can take about a 25% reduction in that for forever. From the time you start collecting data and so I'd like for that to build up and you have an opportunity to do that. The question is do you going pay off all the debt now which is going to further reduce the need that you have in terms of your expenses over the long haul and I would say if you plan to stay in this home. I would do that but run what your thoughts are your processes really good question. The agreement directly. I started when I was seven and that is really nice and come but if you don't need it. It's better to wait because about 25. Secondly when it comes to paying off a home mortgage are typically counseled people that by the time they're 65 or 70 to have at home mortgage paid off, but I don't do that at the expense of having no credit because liquidity gives you flexibility. So what you might do if you're going to get another hundred and 30,000 or so you might pay down on probably pay off the Honda right away and I began some repayment plan on the mortgage but I would play it all down to take all of your liquidity until you get the hundred 30,000 really well that you like to have as well. If you have no mortgage but the trade-off and that's a big one.
So it doesn't sound like your extravagant and what you spending but I would have that plan. The Honda claimant social security begin paying down mortgage but don't pay it off totally until you get the other hundred 30,000 counselor think the balance between being debt free now versus the liquidity trade-off is an important one more reason you could potentially pay it off now is because even if you pay off the car in the home, install the hundred thousand free cash available for that liquidity but I would temper it based on your conviction. Pray through it in you and your wife make that decision together. Vincent thank you for your closer thank you, buddy. Our phone number 800-525-7000 were taking your calls on any financial topic today with Ron blue and Rob West to see Dallas Texas Ray. How can we help user Rhonda Rocker taking time we are one car in debt-free, no 401(k), no retirement plan. We pay our typing your Christian high monthly architect percent or about, but I have a question for our retirement for the future plan or Scripture says store up treasures in heaven, go back and forth from the all right retirement plan that God will provide the industry denying the end, I'm quite capable of working for years to come.
Clearly said that there is no certain time where I will retire will calls it's not real appreciate the quest we got about a minute left.
I want Ron to weigh in on this. What is your age, click great run. What you thoughts. Well, you do need for retirement that I would let you do.
And here's the thing your balancing the present versus the future.
The eternal future that nobody but you got to that question. So there's not a rule to follow.
It set whatever is not of faith is sin relative Ron, thanks so much for being with us today. We appreciate you my friend. Thank you. Thanks, Ron Ron blue, the author of master your money in a number of great resources will be back with more, how should we as Christians think about investing.
What if we could invest our money in a way that aligns with what we believe that Eventide we believe it is possible to love God and love our neighbor in the very best design investments for performance and better world so you can invest for the future with a sense of wholeness and purpose. We call this investing that makes the world rejoice. More information is email@example.com Christian healthcare ministries enables believers to meet their healthcare costs affordably, biblically and compassionately is not insurance but a voluntary cost-sharing ministry based on the biblical example of Christians sharing each other's needs and members are defined under the law for not having health Christian healthcare ministries might be your health cost solution call 800-791-6225 or visit CH ministries.org hi, I'm Caleb from Moody radio Bible Institute first of the week is found in Isaiah 35, 334 strengthen weekends and make firm. The feeble knees say to those who have an anxious heart, strong fear. Now, behold, your God will come with vengeance. The recompense of God will come and see.
That's Isaiah 35, 33421 said we walk in the wilderness to the promised land like one one 2170. Would you like your life to be infused with joy. Would you like to interject an internal dimension into even the most ordinary day on the radio says you can when you discover the treasure principle and a concise powerpack style is newly revised and updated book offers a six step plan. Finding the pleasure and eternal treasure principle what you discover.
Life will never look the same treasure principle is available when you click the store, but moneywise live the head of the FDA, says his agency has suggested a rapid 19 test used by Pres. Rob may produce false negatives.
The Abbott Laboratories test is used daily at the White House.
Abbott has rejected the findings.
Doors are once again rolling portions of Grand Canyon national Park after some areas have reopened during the early morning more than two dozen people were enjoying some viewpoints along the south rim. The main highway between Las Vegas and Reno US 95 has been closed following the predawn magnitude 6.5 earthquake.
A researcher called it the largest strike and remote area of Western about it in 65 years. No injuries reported. Stocks managing to close modestly higher today Vidal gained 60 points.
The NASDAQ was up 70 and the S&P 500 had 11 points. This is SRN use this today.
This is moneywise live times more that all the answers.
Rob West happy to have you on the program are happy to have you with us on the program. Today, however, we are pre-recorded. We will be taking your calls but we've lined up some calls in advance that I think you'll find interesting, helpful and very very practical.
At least we tried to make them that way so stick around. This is moneywise. Let's go directly to our phones while walking to the programs in the call program and I also read the Ron blue book.
I have a question about security because I'm 61 1/2 I have a pension and I still work, but I I'm I just keep thinking that I should take the Social Security as soon as I can save the money and invested in be that much ahead of what I would you know it when I start to collected 66 and eight monthly keep going back and forth on and I know a lot of people stated not to wait, but I just think that's a lot of money to turn down.
Not not knowing what I'm going You Know. Yes, My Wife, You Know What I Mean, That's Exactly Right.
And If It's Something to Think about. I Mean, Obviously, What Factors into That Is Just Simply the Amount You're Giving up and Finding That Breakeven Point and Then Comparing That to Your Health and Life Expectancy and None of Us Know the Day or Time the Lord Will Return, Let Alone When Will Go Home to Be with Him and so I Think You've Got to Do That Matthew Got a Pray through It and Make a Decision Ultimately What It Comes down to Is What Is the Point at Which You Will Collect. You Will Offset the Amount You've Given up by Delaying and Then Enjoy That Higher Check for the Rest of Your Life That Other Simple Math to Find This Number. Basically You Take the Lower Annual Benefit You Molted Time Multiplied by the Extra Years of Benefits and Then You Divide by the Difference between the Higher in the Lower Now I Know That Sounds Complicated, so Let's Say for Example If Your Benefits at 67 Would've Been 18,000 a Year You Get a 30% Reduction for Claiming It at 62, Which Would Leave You with about 12,500 Seater Take You Getting $5400 Less per Year Than You Would Have If You'd Waited.
Now the Five Extra Years of Benefits Gives to 63,000 See You Divide That by Your This Amount of 5400 and You Find out It's Gonna Take You 11 Years and Eight Months Now. You Might Say Robin Not Falling on the Math We Here's the Bottom Line for That Person Who Takes It 62 Versus 67 It's Going to Take Almost 12 Years to Get to the Place Where You've Paid You've Made Back in Extra Earnings, the Amount You've Given up by the Years You Delayed and Then beyond That 12 Year Mark You're Now Enjoying a Higher Check Every Month within the Questions Will How Do I Know for Me to Live 12 Years. What You Don't Know One of the Things Working in Your Favor Is That Once You Reach Age 65 Wife in Its Expectancy Increases. So Once You Reach Age 65. A Man in the United States Today Will Live on Average to 84. A Woman Turning 65 Can Expect to Live on Averaged about 86 or 87 That's Just the Way Longevity Works on the Averages.
So If You Put All That into the Equation You Factor That against.
Whether You Need the Money Now. The Fact That That's Going to Reduce Your Lifestyle Potentially by Not Taking It. Now What about Your Giving and Your Goals and All of Those Things and You Just Have To Weigh All of Those Factors, and Then Make That Decision, but Starting with the Math and Figuring out How Many Years until I Reach That Breakeven Point Is Really a Key Part of This Equation.
Paul Okay, Okay, One More Question I Have in the First Year That You Start to Collect Your Social Security.
I'm Understanding That You Can Earn up to 45,020 19 or 20, 20, or Do They Still Cut You off at the 19,000 Start Collecting Yeah That's a Good Question. So in in 2019. The Numbers Are 17,640 That You Can Earn before Full Retirement Age That Once You Reach Full Retirement Age, You Can Earn As Much As You Want. But above That 17,600 You'll Have a Dollar Deducted from Your Payment for Every Two Dollars That You Earned That Exceeds the Limit and That Was a $600 Increase over Last Year's Limit of Just over 17,000 so That's the Number You're Looking at If You Want to Start Collecting before Full Retirement Age and You Want to Continue Working in Him and You Have Earned Income Paul, We Hope That Helps You Great Questions and Just Pray through This with Your Wife and Asked the Lord What He Would Have You Do None of Us Knows All Those Answers but Obviously Got Done. Thanks Fort Myers Florida Shelley What's on Your Mind Today. How Can We Help You All Rights I Have Known about It at Night and Credit Card and Then on My Help Trying Larry That Now I Have about 8000 in Credit Card That and React, Then I Know, and I Had and I Own a Keypad, Caring That Bolle Now That I'm Not Aware Money. Anything I Nine $730 and Nine Angus Ran around so That's Where I'm Well Shelley, I'm Sorry to Hear about Your Health Situation That Led to These Financial Problems.
I Know Clearly by You Calling Today. You Want to Honor the Lord, and You Want to Find the Path Forward That Allows You to Be a Good Steward of What You Have Member Paul Said We Need to Learn to Live with, However Much or However Little Learn to Be Content Live within God's Provision and We Can Use His Principles to Do That. It Doesn't Mean It's Going to Be Easy and You Certainly Are Experiencing That. Let Me Ask about This Credit Card Debt. Are You Current on It in in Your Current Plan. Are You Paying the Minimums Every Month. Not at All. I Even Have Anything like That. It Probably Three Years and Really like Any Law on How My and Do You Have the Ability Now I Realize You're on a Fixed Income and Every Dollar Matters, but Do You Think You Have the Ability to Start Making Payments on This If You Were to, for Instance, You Connect with Our Friends at Christian Credit Counselors and They Were to Negotiate Monthly Payment That You Could Begin Making. Is There Any Margin.
There Any Hard at Your Rent 409 and My Chance to Hunt and Hunting Knife Found He and the Internet and Not Think about the 730 Think the Key for You Right Now Is Just to Continue to Ask the Lord to Provide Recognize He Is Your Provider, Not the Government, Not Anybody. Also Make Your Needs Known to the Body of Christ and Let's See Who Might Rally around You to Help Be a Blessing Be the Hands and Feet of Christ in Your Life during What Has Been a Very Difficult Season Will Pray for You Will Ask Our Community Be Praying for You and Thanks for Your Call.
We Will Indeed, Thank You Very Much Shelley. Today's Broadcast Is Recorded so We Won't Be Taking Any Calls but We Have Some Calls Lined up in Some Great Information Coming Your Way, but I Think You Will Find Usable at the Very Very Least, This Is Moneywise Live a More Will Be Right Back Where I Am Here to Help You Understand God's Purpose for You like the Eyes of a Layman, How Is It That the Great Commission. One of the Most Quoted Passages in the Bible Is Almost Universally Ignored by Christians Today Less Than 2% Was Invited Even One Person at Church in the Last 12 Month Found That Possible. What Are We Thinking How Can We Possibly Dissolve or Cells of the Only Testing Gods Commissioned Us to Perform Well. Most Christians Talk Themselves into Believing the Great Commission Was Only Given to Our Pastor Going into the World and Preach the Gospel Is Their Responsibility Just One Problem with Going to the World for Going to Church Their Mandate Found in Ephesians 411 Us from the so Their Role Is to Equip Us and Send Us a World Filled with Great Commission. Your Job Is to Guide Revival outside the Walls.
By Moving Everyone Year with Jesus.
If You Want to Know How Easy That Is Go Tomorrow.
TW.com. Do You Know If You Have Enough Money House.
Do You Know How Much Is Enough. If Not, One Blue Can Help with This Book. Mastering Your Money a Step-By-Step Plan for Experiencing Financial Contentment.
Learn How to Save and Invest and Give Wisely Create a Long-Term Financial Plan and How to Get Out Of Debt. Find It All. Mastering Your Money by Ron Blue Available When You Click the Start Button Moneywise. I These Uncertain Times. You Can Place and Michael Blue's New Book Financial Is Unsteady to Just Short Assessment Will Show You Where You Are Now an Online Financial Wisdom and Action Plan in Writing to Transform Right Now Requesting Financial Support, Moneywise Live the Gift of $25 Moneywise Live and Work until I'm Speaking to You in Your Life. Influence Is Most Powerful Reminder Maybe the Next You. God Gives You the Opportunity to Bring Your Friends before We Take Every Opportunity Found Only When We Get to Find out How God Used Broadcast Is so Much Joy As an Email from Erica Jested Rob We Have Saved up $1000 for Emergencies. We Live on One Ear, Regular Income, We Received an Inheritance and We Are Sure If We Should Pay down Our Death or Build up Our Savings to Cover Six Months Worth Worth of Expenses.
What Do You Think Yes and so I Would Start by Saying When You Say Erica Pay down Your Debt.
If You Have Credit Cards. I'd Put Another $500 with That Thousand and I'd Focus on Paying off Those Credit Cards, but Don't Do It until You Have a Spending Plan That You're Confident You Can Live by Is What I Don't Want to See As You Take This Inheritance Take Care Of the Credit Cards, but Then You're Still Living beyond Your Means. If in Fact You Are and You That the Credit Card That Comes Right Back over the Next 12 Months. So I Get the Spending Plan in Place at $500 to Your Emergency Fund and Then Pay off the Credit Cards. If You Don't Have Credit Cards Were Talking about a House Payment or Car Payment, Then I Would Go Ahead and Boost That Emergency Savings All the Way up to the Six Months and Then Take the Balance and Look at Where You Might Want to Put It for the Long Term, Save It, Saving for College.
Maybe Retirement Savings, Other Investments, Those Types of Things. Most Likely, That Inheritance Will Only Happen Once in Your Life so You Want to Use It Carefully and Prayerfully. We Appreciate That Email and Here in Moneywise Live Let's Go Right Back to Our Phones, West Palm Beach, Florida. Jim What Your Questions Are 70 Retired and I Found My Pension Plan If I Die, I Didn't Realize That so I What I Have 50,000 in the 401(k) and Then Say Hundred 9000 and That Pension Plan so I'm Kind of Vehicle, Put It in That I Think Maybe I Want to Get a Monthly Disbursement. How Many Years to Do It. I Don't How to Make Money Last the Longest, and Then I'd Would Want to Go to My Family. If Something Happens to Me in between, and Also Concerned about Commissions Because I've Talked a Couple People If One Wants. I Don't Understand Commissions on These If You've Already Made a Choice Why You Keep Paying That Every Year but Maybe Asked Many Questions and One Well I Think the Bottom Line Is We Need to Get Some More Information Here so You Understand Exactly What You Have and That What Your Options Are. Are They Giving You the Option with the Pension to Take a Lump Sum or to Take a Payout in a Monthly Payout for the Rest of Your Life. Life and Have You Seen the Difference between the Amount They Give You Is Is a Lump Sum Versus the Monthly Amount While the Lump Sum Would Be My Tax 401(k), Which Is Separate from Okay so What We Need to Do Is Really Compare That and Look at What They're Offering You in the Form of the Monthly Payout for the Rest of Your Life and Look at the Equivalent Rate of Return You Would Have To Achieve on the Lump Sum to Generate That Recognizing That You're Going to Be Assuming the Risk.
If You Take That in a Lump Sum Fashion.
But If the Amount You Can Achieve Is Reasonable Based on You Investing and in Fact You Have the Potential to Earn More and You Have the Access to the Funds so You Have More Flexibility If You Need Access to That Capital for Any Reason the Unexpected Event Medical Event Anything like That Obviously Gives You More Flexibility by Having Access to the Principal Your Assuming the Risk of Having to Invested and Achieve a Certain Rate of Return That Would Be Equivalent to That Monthly Payout That Would Be Added to Your Other Income and Then We Need to Do Some Retirement Planning to Say Okay. Based on This Pension Based on the Social Security Income. Based on What You Have in Your 401(k) and Also Based on Your Lifestyle, Your Expenses in Retirement. Once You Stop Working Where You Are and What Changes Need to Be Made. Do You Need to Downsize Your Lifestyle Because You Don't Have Enough There. Do You Have Plenty but You Need to Think about Things like Long-Term Care Insurance Which Could Offset a Risk That Could Be Perhaps the Greatest Expense That You Could See during That Season of Life. All of This Will Be Considered in Some Retirement Planning. So That's What I'm Going to Suggest Is Your Next Step Because There's Too Many Moving Parts and Unanswered Questions for Us to Give You a Specific Recommendation Here Just a Couple Minutes on the Radio, but If You Sit down with Somebody You Could Pay Them Just for Their Time, Not an Ongoing Engagement to Look over and Assess Your Full Situation. I Think You'd Really Find Some Peace of Mind and Some Value in That Process. The Way to Do That Is Just Go to Our Website It Moneywise Live.org. Click on Find a CK Find a Certified Kingdom Advisor Put in Your ZIP Code and There in West Palm Beach. There's a Number of Them and You Be Looking for a Financial Planner That Can Do Specifically Some Retirement Planning for You and Help You Analyze All These Options Jim Thank You Very Much Were Glad You Called Today, Orlando, Florida, and Steve What Your Situation, You Have a Roth?
Yes Sir, You Got My Call so I Want You so and I Retired from the Military Back in 2013. I and I Been Working Part-Time so You Years I Was Student for Year and I've Been Working Part-Time and I When You Write It Work at All Currently Operating since I Retired Military Pension from Their As Well As Rental Property and I Just Was Reading Something Recently That I Should Have Not Been Contributing to My Roth IRA and I Was Wondering What My Steps That I Need to Do for the Year That I Did Not Work a Full-Time Job of Receiving Income. Well, Once Those Years Pass. You Can't Catch up with the Rocks of the Key Is That You Contributors Many Years As You Possibly Can.
So Long As Your Income Is below the Max. Sounds like It Will Be an Recognizing As You Just Acknowledged You Can Only Contribute up to the Maximum Contribution but You Have To Make Sure You Have At Least That Much in the Way of Earned Income for That Particular Year and If You Do Then You Can Obviously Make That Contribution for Somebody Who's under 50, It's the 6000 over 50 at 7000 This Year and As Long As You Have the Earned Income up to That Amount. You Can Obviously Make That Contribution I'm Forcing You Woodinville to Go Back and Contribute for Prior Years Were You Had Not Made the Contribution. So Then We Look at Okay What Are Other Opportunities for You to Save for the Long Term. We Obviously Want to Do That in a Tax-Deferred Environment When Possible.
So If You Have Access to a Another Retirement Plan like a Company-Sponsored Plan or Something like That. You Could Save There, Alongside the Roth IRA. I Think the Key Is to Keep Your Lifestyle and Check Make Sure You Have Your Emergency Savings Picture Debt Is under Control You're Giving and Then Just Try to Save 10 to 15%. At a Minimum, toward the Longer Term.
If You Can Save More That Would Be Even Better since You Plan Some Ketchup Yacht so I've Been Doing All You Know Now That What I've Been Doing in the Years I Did Not Work. I Still Contribute to My IRA, IRA, and so That I Should Have Not Contribute to Working I Said Yes Okay I Would Visit with Your Tax Preparer on That Just to Find out How to Approach That. But If You over Contributes You'll Have To Pay the Penalty for Excess Contributions and You Want to Go Ahead and Do That. So If You Don't Have a CPA Who Can Help You Navigate That You Can Find One on Our Website It Moneywise Live.org Just Look for Certified Kingdom Advisor There in Orlando in the Tax and Accounting Area. Just Let Them Know I Made a Contribution to a Roth. I Didn't Have Earned Income Want to Acknowledge That and and Do Whatever I Need to Do to Make That Right and They'll Help You Navigate That with the IRS Should Be a Big Deal and I Think the Key Is That You Get on Top of It Now and Don't Delay Steve. We Hope That Helps Your Server and Were Glad That You Called Today.
Thanks Very Very Much and the J I'm Not Sure Were Going to Be Able to Get You on the Program Today, but If You'll Stay on the Line Will Talk You a Bit off Air, We Do Appreciate Your Call.
Thanks Very Very Much and Rob against the National Day of Prayer We Don't Take That Lightly around Here All That We Do and Say Is Bathed in Prayer to the Best of Our Ability.
Not That Were Perfect in That Regard, but That Listers May Not Know That Whenever We Sit down behind the Microphones We Do a Very Best to Remember to Pray First and It's Not a Good Luck Charm or Rabbits Foot or Anything like That.
It's Because Were Fully Aware of the Fact That Even Though Were Talking about Money and Finances Were Also Aware That God Has Planted Us Here in His Word Has A Lot to Say about the Subject and We Want to Be Able to Sink Our Brains and Our Spirit up with His Wife Exactly Right Stephen One of My Favorite Passages As Philippians 4, Six and Seven Be Anxious for Nothing, but in Everything by Prayer and Petition with Thanksgiving Present Your Requests to God and the Peace of God, Which Surpasses All Understanding, Will Guard Your Hearts and Minds in Christ Jesus. If You Look Carefully at This Verse. It's in the Form of the Command. Be Anxious for Nothing, but in Everything. Pray and I Would Say Steve That Everything Includes Our Finances. We Have the Opportunity to Invite the God of the Universe into Our Financial Lives and for Many of Our Listeners Today. In Fact for All of Us.
That's Exactly the Step You Need to Do Especially If You're Struggling to Determine Your Next Move Financially. Ask God to Be Present in That Decision to Give You Wisdom As He Promises to Do in James and Then Move Forward with Confidence.
Amen to That. If You'd like to Put God's Work and Principles to Work in Your Own Personal Finances. Let Me Suggest Ron Bloom's Book, Its Newly Revised Master Your Money in This Book Ron Helps You Put into Practice Principles That Will Help You Avoid Common Financial Mistakes. It Will Help You Save Investing Give Wisely Get Out Of Debt Plan for Your Taxes and Estate Needs.
How to Create a Long-Term Financial Plan That Works for Both Spouses, Not Just One, and Much Much More. Again, the Title of the Book. It Really Is a Masterpiece It's Called Master Your Money and You'll Find It Available to Purchase.
When You Visit Our Website Moneywise Live.org That's Moneywise the.org Where You'll Find a Number of Free Resources Including past Radio Archives. Some of Rob's Favorite Resources, Ways to Apply God's Principles to Your Money and Much Much More. It's Also Where You Can Make a Donation If You Feel so Inclined. Pray about That and Then If You'd like to Give Just Click the Donate Tab at the Top Moneywise Live As a Partnership between Moody Radio and Moneywise Media. My Thanks Today to the Folks in the Front Lines. Judy, Gabby and Rich for Rob Last Time Steve Moore Hoping You Will Join Us Again Next