7 Things Not to Do in Uncertain Times

Don't be afraid.

We've all experienced uncertainty in our lives in the anxiety and worry, and causes in those times is important to give a clear head toward making some common mistakes with your money.

When the unknown helps us it's natural to question the financial decisions today advises Pres. Rob West tells us how to steer clear head and will take your calls on anything financial at 800-525-7000 800 525747 things not to do with your money nice right here on Rob recently you had a conversation with very qualified people to talk about financial downs during uncertain times. Ron blue and Howard Deighton both real veterans of personal financial counseling. I know that they shared what they think of the seven most common money mistakes people make when things look kind of bleak, well that's right Stephen, it goes without saying, first on the list is responding out of fear, your first battle is against the fear that arises during times of uncertainty even though it says fear not to over 300 dimes in God's word and unfortunately, that fear can lead to irrational thinking and ultimately irrational behavior. So how do we combat that well.

The most effective way to overcome fear is to have God's perspective. He's not surprised, and he's in total control of the circumstance he's going to use it for his purposes and kingdom growth. If you have a long-term financial plan, consider whether your plan will stand the test of time and I think that's probably one battle best fought on our knees in prayer to God that he'll show us the right path the right direction. Okay, what's next well. Next is focusing on what you can't control. You can't control the Federal Reserve. The stock market or the GDP, but you can control what God provides you to steward or manage it.

When we look at what Scripture says about money. Steve God plays a role and we play our role he's ultimately the owner and controls everything he is also responsible for our provision. On the other hand, our part is confirming that we have a good spending plan that includes getting in debt reduction and all the things we can control okay. Good focus instead on what we can control all warts number three well it's watching the daily moves of your investment accounts member.

These are the things not to to don't fixate on the daily headlines it's actually detrimental to your decision-making process balance watching the news by focusing every single day on your Bible study. Instead, refocus on having in all of God are you in all of God.

Well, if so, all of the short-term concerns come in the proper focus. Yeah I like that. Great advice. In fact, recently Marsha and I have started watching the news every second or third day. Believe it or not and I know there's a lot going on these days, but I don't have any great sense that we miss anything.

When we do that so that probably gives us a little bit more peace than we than we had before I what's next number four, yeah. The fourth thing not to do with your money and uncertain times is cutting your giving unfortunately it's one of the first areas. Many people cut during times of uncertainty we've challenged you not to do that here on this program but instead to trust God as an act of obedience and worship even in a difficult season of giving is what breaks the power of money over our lives. It really shows where we've ultimately placed our trust as we hold loosely everything that we have is the body of Christ, we should give more if were doing okay because many people aren't that God's given us resources, financial or otherwise, to be used for his honor and glory. That's right. I like that hold what you have, loosely with an open hand art number five. Well it's veering off your long-term spending plan. One of the fundamentals of planning is that it helps us make better short-term decisions. Today a long-term perspective, our finances can be interpreted as an eternal perspective. Generally, we shouldn't have to change in times of uncertainty because we have a plan that anticipates uncertainty. Let's jump to number six and that's hiding from your creditors. You know sometimes when were facing financial challenges. We may not want to face creditors we avoid phone calls and don't reach out to the creditor directly, and yet this is something we want to avoid doing so.

Take the initiative. It pleases the Lord.

When we communicate clearly with her creditors are a great okay. The seventh thing not to do with your money and uncertain times. While this one is key. And it's ignoring what God might be saying to you spend time with him and listen for his guidance and wisdom. We have daily opportunities to be salt and light in this world so pay attention to the best plan is placing your faith in the eternal God created everything and has all wisdom and knowledge he has your best interests at heart study his word and spend time this moneywise live with Rob West family important subjects like this month's moneywise magazine were giving your family to send us to grow closer to God closer together and closer to true financial freedom and practical advice to shrink the financial communication in your marriage is more budget friendly family activities and q. week landlord free moneywise magazine subscription is waiting for you moneywise.org/site when it comes to investing guidance you want advice, grounded in God's word. That's the approach offered by sound mind investing. SMI has helped tens of thousands of Christians acquired vesting wisdom and confidence.

Regardless of your investing experience or how much you have to invest, you can learn to be a wise and faithful steward in the area of investing a short video webinar on profit and peace of mind is available now sound mind investing.org hello my name is Harold I want to offer our assistance to help you in planning for your future planning for future how you can see my future for all eternity will know that we can discuss both your short and long term options on IC and is it for nothing. His reverie, but we do offer a generous right your futuristic care. I have my plan worked out when I retire, I should be very comfortable, but you after that. After after one after you die easy futuristic care at UL who knows how can anybody know the Bible teaches that God has a plan for your life is freely available and last for all eternity. To qualify, you must ask for forgiveness from God and sincerely believe in his son Jesus Christ. Christ died to pay the price for your sin if you believe you eternal life. And if that is robbing you of freedom and peace of mind.

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All of our lines open and available when you call 800-525-7000 again.

800-525-7000. Anything financial that you been wondering about pondering about praying over to give us a call. Would love to chat 800-525-7000 now for the first part of today's program we been talking about seven things not to do during uncertain times with your money and that were down to number seven rod you want a review number seven force again and then we'll talk about this conversation you had recently with a couple friends of ours. Well it's ignoring what God might be saying to you, here's the big idea Steve, you know, I find it I've said this before, that our financial journey is often one of the key ways. God shapes our spiritual journey.

So the question is, as you work out your values and priorities with the way you allocate God's money.

Others, often ways that God speaks to you in that process and so I think we need to be looking at having our eyes open for Natalie.

His guidance and wisdom but exploring the truth in the Scripture for the principles that we need to be pulling out and we need to be asking Lord, what might you be saying to be about about where I place my trust and perhaps an uneasiness, perhaps even a concern or fear around money may reveal that you have misplaced trust. Maybe you're trusting too much in the things of this world, your bank account your stock portfolio when in fact God's trying to redirect you toward total dependence on him. I think these are some of the key things we need to be looking for. Well, as we mentioned you had a conversation with two real heavyweights when it comes to this topic guides that is spent their lives. Teaching on biblical principles as it as it pertains to our personal finances that would be Ron blue and Howard Dayton Howard, the founder of compass, finances, God's way and will have a link to that interview the entire interview in our show notes today. It was part of our part of a recent podcast right exactly that absolutely was Stephen.

These are two giants of the faith.

Both have been mentors. To me personally. These two men have really played a key role in applying God's truth to modern personal finance through their writing and work alongside Larry Burket. They really pioneered the space so yeah it's a wonderful interview and these guys really know their stuff.

They really do you know I have to chuckle because as you know I started working with the Larry Burket back in 1985 and at that time Larry was the most prominent person teaching these principles. He had the first one have a radio program and he did a lot of radio appearances on other peoples programs. His book and resources were offered by Billy Graham on television so all very quickly you he sort of established himself as the expert on this but at the same time when I would talk to radio stations and other people about who we were and what Larry did when he stood four people would just shake their heads which will mean, how often can you talk about you know money in the by going to tell people be generous and given that pretty much covers it and you know here 30 some years later were talking about it.

It's more germane than ever before and I think people finally have a caught on that this reason that the Bible says that money is God's greatest competitor. And that's because if we give our love. If we give our attention minor energies to making money, keeping money, storing money that we don't have any of those energies left to serve God was exactly right Steve and the 2300 verses in the Bible I believe are there for a reason. Everything in God's word is there for a reason. And as you said, it's one of the chief competitors. The Lordship and it's how we work out what's important to us day in and day out. We all spend money all the time. It's the common denominator so we should orient our lives to do it God's way with his perspective.

I love it. Here's her phone number again if you'd like to speak with Rob today 800-525-7000 elites, or you can always send Rob a brief email just a couple of lines we may have a chance to read some today. The address is questions@moneywiselive.org questions@moneywiselive.excuseme.org let's go to our phones, Elgin, Illinois hi Linda what's on your mind, Linda, are you with her. I think rate, I can hear me yes Ms. you go right ahead okay my question today and where it with additional money cannot have coming. I am 67 I worked two part-time job, in addition to receiving Social Security with my one part-time job. I literally took it on just to check off the loan that John but I know I need to rebuild my emergency fund kit should I use all my additional money to rebuild that or should I use part of that.

You also pay down additional my mortgage by six yeah Linda one delighted to hear what you're doing here. Obviously you been able to keep your spending in check, such that this extra part-time job is able to be applied fully toward advancing your goals and I clearly debt reduction having some margin and some savings vis-à-vis an emergency fund, or clearly to great goals to have when you talk about your emergency fund.

Where is that now where does it stand it all remodeling my dad trying to mold okay sorry I have extra coming in per month. I have about 3000 in an emergency fund.

At that point okay.

What would be the surplus that you have on a monthly basis. Moving forward about $400 okay excellent and so you got about 3000 when you total up all your expenses over a 30 day. What would you estimate those to be about $2500 okay so 4500. We would say 3 to 6 months expenses so ideally he would like to have a minimum of around 13,500 and then emergency fund. If you wanted, fully funded and go for a full six months worth of expenses you know we be talking around $27,000, which lets you take a while from 3000 to get there at 400 a month but I'm delighted to hear that you got that extra 400 a month so I think that the key here right now is how many months do you want before you would be comfortable allocating perhaps a portion of that extra 400 a month toward debt reduction and it sounds like the only remaining debt is your mortgage. I would say let's get to at least two months worth of expenses because it sounds like you have some reliable income sources.

We really don't need to worry about. Perhaps a disruption in income is much as we need to a major unexpected expense. A major home repair, you were planning on.

Although we should be setting aside of something for home repairs and maintenance. A major medical event that was outside of your planning something like that and so that would mean that we need you know another $5500 in order to get there or so, maybe 6000 and so if we were to break that the 6000 down by 400 a month to take you a little over a year year and three months in order to get there so I would say while you're rebuilding that. Let's just focus entirely on the state emergency savings, but once you hit two months expenses. Perhaps at that point you split it and you take half of it to continue to build the emergency savings and half toward debt reduction. There's not a hard and fast answer here right way or wrong way. This is just my thoughts on it but to tell me your thoughts and reactions to that plan.

Actually okay right gray need to build that emergency yeah I think that will give you some peace of mind and certainly allow you to have something to fall back on in the short term. We certainly don't want to have to tap into and you wouldn't unless it was a line of credit. But once we put it against the house. Obviously, it's not going to be available without a significant cost to refinance or something like that. So we want to make sure you have plenty there. And by the way, if you felt more comfortable getting to a full three months worth of expenses, then you know you would obviously just extend that out a little longer, but I think that's Isaac a great plan you're on a good track year and we appreciate your call today. We do indeed thank you Linda God bless you, Cleveland, Ohio hello Pete, you're on with Rob West. I will loan my third federal or your fellow loan and like year now or right now my rate.

Although not well couple of follow questions pizza you got a 5% interest rate. What is the home worth and what you owe. All all water Party One Credit Card Work, How Okay and How Many Years Do You Have Remaining on This Hundred $10,000 Mortgage 2020 Years Okay and so Were You Planning to Refinance for the 20 Year Term Lord Yeah Okay Well Couple Things Number One Is I Make Sure You Can Save At Least a Point with a 5% Interest Rate Is Only Give a Good Credit Score That Should Be No Problem. You Should Get a Rate below 3% Number Two I'm Not Crazy about You Extending the Term.

In Fact, That Would Be a Deal Killer for Me. I Would Only Do This If You Refinance a New 20 Year Term so We Don't Extend It Because of Your Extended You're Essentially Going to Take All That Savings in the Form of a Lower Interest Rate and Now a Lower Payment and You're Going to Miss out on All of That Because You Can End up Paying All of That Back Probably and Then Some Interest. The Third Thing Is I'm Not Excited about You Pulling the Money out for Credit Cards Because so Often That's Just Masking an Underlying Issue Which Is Overspending. I Really Want You to Solve That Issue First or Spending Plan As Opposed to Skews Me Taking on More Debt so I Push the Pause Button on This If You're Going to Do It.

Let's Get the 10 Year Term, and I'd Really Be Careful about Paying off the Credit Cards Unless You Know That You Solve the Underlying Issue. Thanks, Pete Will Be Right Back after This Money and Life Run on the Same Track. Unfortunately, Sometimes It Seems like Your Money Is Heading in a Different Direction from Your Goal, and Never Enough Three Keys to Financial Contentment. Author Ron Blue Helps You to Break down All Your Financial Options to a Basic Floor and Then Shows You How to Keep It All Chugging along in the Right Direction on the Same Track Never Enough Three Keys to Financial Contentment Available When You Click the Store button@moneywiselive.org is everything to which the concluding cleaning called as you are called according to his word purpose is just a couple of times and the wonderful word Greek word is spelled PROTHEROI want you look at that for a second and again it's a little bit of a clue here that work are 1.1.1 prayers and support of this program to recklessness months think it's the worst gift of 576857682/do you know if you have enough money house. Do you know how much is enough if not Ron blue can help with his book, master your money a step-by-step plan for experiencing financial contentment.

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Find it all in master your money by Ron blue available when you click the store button moneywise to work in Hebrews 11 six and without faith it is impossible to please him, for he who comes to God must believe that is and that he is a rewarder of those who seek Grand Rapids, Michigan hello Hazel, thank you so much for holding on and know what's in your mind today, my call will sure start to make an my credit card don't care it with me.

And so the goal of that we can open the one thing they feel I'm okay yeah a little get out from that time but okay. And I need the cog in the mail and I was.

I am not activated yet because the credit limit what they know live characteristic hard with that, I don't want to get a negative effect on my credit.

I then know to pass well enough, it's true, but that it could go that way. I'm not sure how to handle that. Please be delighted to you know the reason you've heard that lowering the credit limit can hurt your credit score is all about something called credit utilization.

So, the lower your utilization, which is the balance you're carrying versus the limit that's available to you. The lower that utilization rate, the less risk you represent to the lenders in the credit scoring models use 30% is kind of the key threshold so if your balance is greater than 30% of your limit, then you architecture get a ding your credit score.

Now you're paying it off every month. That shouldn't be an issue that's only for those who are carrying a balance month-to-month. Now here's the other issue, though it is long as you are paying it off, there's really not necessarily any risk Hazel of you having a limit that you never intend to fully use because you should only be using this card for budgeted expenses. You should be paying it off and if you just feel better having a little bit lower. You could call them and ask them to lower it and it's really not can affect your utilization because I suspect your putting very little on this card on a monthly basis and in your paying it off. So if you just feel better. Just place a call to them and asked them to lower that limit for you and they should be able to do that but otherwise I don't think it's a real issue to have it out there as long as again it's not a temptation for you to spend money you don't have that you can actually pay down. Does that make sense and fall. Now I can't tell okay and even if your score were to drop slightly as it's lowered, you know it'll bounce right back, though probably try to talk you out of it because the game the credit cards play is they want to keep raising that limit until they get you to start carrying a balance month-to-month, because that's when the real benefit kicks into them, but the bottom line is if you feel more comfortable place that call and asked them to lower that limit for you. Otherwise, I wouldn't worry about it because you're paying it off anyway. Maybe that's a profit that's a problem that lots of Americans ought to have having the cards canceled because of inactivity. Activity I don't know how often that happens but it is interesting that the credit card companies keep an eye on that and I guess they just want to keep you on the books.

If you not going to be a loyal customer for a good customer actually is the way they see it.

If you're not spending and using that card they don't consider you a good customer.

There is no merchant rebate coming back. So yeah, they're not making any money by hello hold onto that account.

We consider you a good listener and would love to have you as a good college. Here's the number 800-525-7000. How should we as Christians think about investing. What if we could invest our money in a way that aligns with what we believe that Eventide we believe it is possible to love God and love our neighbor in the very practice of investing we design investments for performance and a better world so you can invest for the future with a sense of wholeness and purpose.

We call this investing that makes the world rejoice. More information is available@investeventide.com Christian healthcare ministries enables believers to show love for one another by sharing each other's health costs through CHN's voluntary health cost-sharing programs members uplift each other spiritually and financially. CHN was an eligible option under the affordable care act and a Better Business Bureau accredited charity interested. Learn more by calling 800-791-6225 or online at CH ministries.more hi my name is Aaron production assistant at Moody radio Moody radio versus the week is found in Proverbs 4527 get with them, get insight, do not forget do not turn away from the words of my mouth. Do not forsake her she will keep you love her.

She will guard you. The beginning of wisdom. This wisdom in whatever you get. Get insight. Proverbs 4527 the Moody radio first of the week founder quite like the one sent we walk in the wilderness to the promised land tomorrow provides liking him with the remainder family dynamics book, 101.7101 2170 the financial wealth you leave behind could be the best thing that ever happened to your loved ones or the worst, and it 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 love I got or the energy industry is assessing damage caused by storm surges and high winds as hurricane more to dangerous path across the coastlines of Texas and Oklahoma making landfall early today. Oil and gas producers evacuated platforms and rigs in the Gulf company shut down refineries in the storm's path more than 700,000 customers without power in Louisiana and Texas and Louisiana for deaths attributed to Laura which is now tropical storm in southern Arkansas Commerce Department reporting that the US economy shrank at an alarming annual rate of 31.7% during the April June quarter as it struggled under the weight of the barley pandemic. The sharpest drop on record starts finishing mix without a 160 once the NASDAQ dropped 39, the S&P 500 was up five this is SRN use moneywise for that guy over there answering all your questions. He's Rob West. He would love to chat with you today. In fact, we have callers all lined up in Miami, Chicago, Idaho, and right now it's a done a calling from Florida.

Rob I think she has a comment force already done. I would love to hear it.

Thanks for going to a lack of anything and forget that course at work… I'm really grateful to hold a permit and get it going at say that my daughter, I will write in the epicenter that disaster and I and looking to the Lord and they do. They were able to take Yang a couple and another gentleman let one about the other and apartment that got destroyed and they been able to help those folks out there waiting to have a place in the grateful for God in their heart that that trust that they can be that it's very good and I appreciate you mentioning that Donna, we absolutely do need to remember God's faithfulness all throughout our journey we need to get we need to be good at celebrating that we think celebrating the progress that you're able to make when you apply these principles and move in the direction of the of release shoring up your financial foundation is key celebrating doesn't have to be expensive but it allows us to acknowledge what we been able to do through God's provision and I think just remembering is a theme we see throughout the Bible, you know, we see the Israelites gathered a pile of rocks to recall God's mighty work in Joshua, so the same thing and so we see that idea of marking and remembering God's faithfulness and then passing that down through the generations by telling stories of what God has done to provide and protect us throughout the generations.

So thank you for that reminder today. You're exactly right. God bless you Dina God bless your family as well. Thanks so much. Accordingly, Idaho Marine what's on your mind hi I enjoy your program and regularly I have been an iron retirement years and we want to invest in CD and they come with various rates of return.

Is there a way other than calling each and every bank loan. Whatever way to find out what current rate of return there would be a little concerned with the quality of the ED they have any. We wanted that, but we also want to have our money available to you and website Maureen I would send you the bank rate.com bank rate.com a great resource for you to check rates on for borrowing some mortgage rates and home equity loan rates in those type things but also rates of return for banking products including CDs. So when you click on banking and you click on CDs you'll see the best three months, six month, nine month one year to year three year five year CD rates out there and what you will find is there not very good with historically low interest rates. Unfortunately, CD rates follow and there's no reason right now to lock up a long term rates of rent since you might give three quarters of a point on a six-month CD which by the way there's no reason to do that because you get the same thing in high-yield savings without any kind of lockup.

But if you go out three years that three quarters of a point might go to a point in the quarter at the most five years. Your barely get to get one and 1/2% so there's no reason to lock up your money for a long period of time at those low low rates. The only reason you're going to do any better than that is if you find like a perhaps a local credit union that's adding some sort of bonus to attract money in and it's generally for a very short period of time might be for the first six months or a year but you know bank rate.com is a reliable source. Unfortunately, you're not going to be thrilled with what you see but you will be able to find the very best options now as to the safety, but they were also rate the banks I will tell you though you don't really need to worry much about that as long as it's in a bank with FDIC insurance is going to be protection there.

So if something were to happen to the bank and that's very uncommon. The Federal Deposit Insurance Corporation will step in and make sure you're protected so Marion saw us, sorry for the bad news, as far as I know, looking for 3%. If you do find 3%. We would love it if you contact us so we can alert the rest of the country. Pressure has happening out there but God bless you.

Thanks so much for calling in today Chicago Louise you're on with Rob West within the last thing I help my question. I had $122,000 in profit sharing from a company that he worked for 10 years ago. He was laid off and they have been reinvesting his money.

He refused. Here call it away from that and take it to you know another agency. Our company and I've been urging him to really think about that and the content that you're taking my call today to everything. I have a conflict. Very curious what you say about that. What is his resistance Louise to rolling it out to let's say an IRA in taking over the management of their he said basically, why should he bother at the applecart with such a great job but they might be doing that you have no Internet and he's worried about being worried about you now call transfer, basically.

I get complacent and I don't want to be too critical, but feel like any kind of some uncertainty. He should really be a little bit more proactive money like that significance.

Well, do you have a sense of what the return has been since it's been there since he left down. He doesn't show me the statement I did publish pretty hard and he finally showed me something quite I garlic everything going on currently. I think I like the type of law. Concurrently, the case and you have other investments other retirement accounts, and are you managing those yourself or do you have an investment professional helping investment professional. I work for a very large corporation on 18 years, and I got on a very small amount of retirement 37,000 and ironically, the company that panicking at her. It's not necessary, but that's okay so you are you contributing or is he on a regular basis to a new retirement plan now working very hard time with Erin in regard I'm contributing okay all right well. Couple things number one is I do like the idea of rolling it out to an IRA and love to see you will have more direct involvement in the investments that are being used. I would hire an investment professional to manage that for you.

Just so you have control over it or somebody giving thought to what is so much risk is being taken is it consistent with your goals and objectives, and I would explore how much you're putting in retirement moving forward. The why.

Let's talk a bit more what we hit this break and we appreciate your hang in there Louise. We appreciate] many people are experiencing financial challenges such as credit card debt downsizing that in jobs savings. In fact, more than half of all divorces are the result of financial pressures at home, but there's hope in your money counts biblical financial expert Howard shows that the Bible is a veritable managing your finances will discover the profound relationship with God, your money counts is available when you click the start button moneywise. I.org hi I'm here I'm here to help you understand the urgency and how much fun it is to share your faith in the eyes of the layman in all seriousness, will you be witnessing the ending of America.

Their force behind the scenes were hell-bent on destroying all respect for America in the minds of our young people there goes a new world order that would be led by the end of Christ.

That's why the orchestrated taking data statue from coast-to-coast. No regard for the historic figure being honored destroyer history in the minds of young people who have no idea there's a God who loves and that was an attorney with having said that, it's possible that Americans having no respect for America will respond to a charismatic global leader promising peace and prosperity sooner rather than later in knowing the rapture happened before that happened we may have very little time to reach our friends and loved ones before.

There's nothing more exciting than knowing God is using you to move people closer to join us in a nightmare.com is something that most people only really tune into seriously.

When the chips are down.

You and I can be sure that there are a lot more people praying to the wound before the coronavirus break and get this whole prayer thing was Nathan meant to be merely last result hi, I'm Betty Don from Christianity works.com.

The startling thing is that when you happen goals would you discover that the only sort of. The Bible teaches about the salt that has powerful results.

I want to encourage you and gain with these truths.

Listen carefully.

The only sort of prayer that the Bible teaches about the sort that has powerful results. In fact, we told to come boldly boldly before the throne of Christ to receive mercy and find grace to help enough time of need. Second, I encourage you to die. Pray boldly and let go on space rule in your heart.

Many people adopt an attitude toward marriage and finances that it will all work out somehow.

But sadly, it often doesn't financial woes can devastate a marriage but there is a better way.

God's way, money and marriage God's way by Howard date will help you discover God's approach to growing your finances strengthening your relationship with your mate and cultivating godly joy, money, and marriage God's way is available when you click the score and moneywise.org back with us today moneywise not haven't checked out our website and while you might want to do that.

There are additions on a regular basis. Lots of great information that's free things you can download a help your personal finances and much much more.

It's moneywise.org it's also where you can make a donation or gift. If you'd consider that this is a ministry and as a ministry we really do depend upon your partnership. Your generosity and like I said, you can make a donation there. Just click the donate tab at the top of the page when you're on moneywise live.orc, Miami, Florida hi Marilyn, how can we help you. I like all not make it to and in a pension plan with the school board clerical personnel and that my only sort other than Social Security retirement. However, with that pension plan is no, they do give you a call letter now that however if you don't live long enough, you know, you don't get to leave any money to your ears and I've had this thought and I've been praying on it and don't know even know what to stop, but I've had thoughts of well I'll pull it all out and I don't know the lump sum yet.

I'm trying to find that information out and put it I don't know what kind investment plan, but I was thinking of even I know how much of a hit, would be to take it out and to move out of Miami somewhere in northern Florida and buying a duplex or something and renting one side out living in the other side and then you know but I don't how much of a hit. It would be permitted to draw that money I'll out one lot thump like that yes I understand where you're going with this in a couple of thoughts. Number one is that you know you want to be really careful about pulling this out because of the tax considerations would all be taxable and you want to push a good bit of it up into a higher tax bracket inadvertently by taking it all at once number two you could roll it out to an IRA and then you could use something called a self-directed IRA inside the IRA put it into a piece of real estate, but I'd be real hesitant about that unless you have some experience in that you know becoming a landlord involves quite a bit of work just in terms of selecting the right property, making sure you can keep it rented marketed taking care of the maintenance and the upkeep keeping you know somebody in there. What if somebody moves out unexpectedly and that you got a big you know of perhaps a property with no income on it that you're maintaining and it's bigger than you need, so your ear training.

The guaranteed income of the pension for the lump sum but you're taking on a lot of risk with that in terms of now, you're responsible for that money to work for you and produce the income that you need. Now granted you have access to the principal but you just gotta really think about what is my plan when I get this money. If you're going unvested I would make sure you hire an investment professional and I would have that individual. Compare the internal rate of return on taking the lump sum and converting that to an income stream versus the monthly payout there to give you on the pension to make sure that it makes sense.

First of all, and then secondly, what is that investment strategy, either through stocks and bonds or through real estate and again I'd be real careful on without any experience becoming a landlord in trying to make that work for you because again, your your trading what is going to guaranteed for something that involves your quite a bit of risk where you're assuming that yourself so I realize you want to be able to have something to pass on. You just need to count the cost most from an investment standpoint, the risk standpoint and a tax standpoint before you make that decision. So encourage you to reach out to a certified kingdom advisor there in Miami. Then once you get all the information have that individual walk through your options with you to explain what you would get in the lump sum versus the monthly pension payout and talk through the various options for managing that money and giving your recommendation on what makes the most sense. Just go to moneywise live.org. Click on find a CK and I'd schedule an appointment to do some planning. Marilyn, thank you very much we appreciate that call. Hope that works out for you. Well, Ohio Keith what's on your mind all about dollars. How about Bob but it grow on about one idea of putting that money into work with you this money. Please be specifically earmarked for college or is this just money. You want them to have outside of perhaps college expenses. It will be what they want to do it so okay yeah and are you set on putting this in their name now or would you be okay keeping it in your name. Even though perhaps it's in an account that's earmarked for them and and you certainly know that all will all well. I would avoid putting it in their name you you. Some people do a custodial account or what's called a uniform transfer to minors act.

The problem with that is that at the age of majority in your state. They can use the money for whatever they want, that you may be okay with that but if they were to perhaps not be a good place in terms of their decision-making process, or maybe in some ghetto behavior that you don't condone it was certainly we pray that's not the case but they would have access to the full amount of the money to do whatever they want with and you wouldn't have no control over that. So I think there's a control issue here. When were talking about a lump sum of money in an 18 or 21-year-old you know that might not be making good decisions. Number two is the financial aid implication. So if they have the potential to qualify for financial aid. You could actually hurt their financial aid eligibility. Because if you put it in their name is can be counted as their asset versus it being counted as your asset which is factored in a much lower percentage in terms of the expected family contribution. So I think I keeping this money in your name, your marking it for them. Perhaps in a separate account and putting it to work is probably the best way to go. You are can have some taxes on it, you have some capital gains because it's in a taxable account so each time you sell, you would generate either capital gain or capital loss, and that money will be taxed accordingly.

But the bottom line is it gives you the ability to see this money grow over time. And then when you're ready to give it to them for whatever reason, you would have the ability to make that decision at that time, to some extent about all control will will. I don't want to that's exactly right in and it could be money has a way of doing that, depending on what's going on in their lives. At the time that they would be receiving it. I think the other issue is just keep in mind, you have the ability on the account to make each of these granddaughters, the beneficiary of the accounts of something were to happen to you, it automatically passes to them and so you can set that up in advance. Keith, you sound like a generous guy will pray that God gives you the other the right direction there, but I think Rob's suggestions today were really good ones got bless you. Thanks, Chicago, Illinois, Rose, you are final caller today.

Let's squeeze it in.

What's on your mind how I found out a few weeks ago that I will be out of it.I've been working for major medical contract for 32 years that I'm going to have my content and my retirement from the 403K and I want to know what to do with the pension money that could take one month time I could take him whenever I want.

I was thinking about property generate income, but what I have what you have.

Do you know what the lump sum would be for the pension. If you were to elect an option hundred and $32,000 okay and what would you receive monthly if you were to just take the monthly pension payout in my head. I don't know. I don't know, but I'm not old enough to retire and eat and I was talking to Kevin so I don't know Lucy okay and what you have in the 43B know I don't.

Okay you know I think what would be best to your roses for you to do some planning because obviously these are major decisions and I want you to really think through these carefully was some wise counsel and I sleep right through this because this really has implications for your future as you move beyond your working life into this next season asking God what he has for you as you redirect your time and energy I want to be able to factor in this pension recognize the implications of taking the lump sum versus the monthly payout your assuming the risk associated with that versus just the guaranteed payout monthly. You also need to have a plan for how it's gonna be invested in real can you generate that money. You mentioned real estate so you want to go in your eye with your eyes wide open on one of the implications of that how much work is involved in that. Are you willing to commit the time and that to make sure that that is handled properly and then you have the 43B.

Words that can be managed. You also need to figure out what are your what is your budget going to look like during this season, so you can compare your Social Security plus the pension plus the 43B to make sure that you got the income stream that you can count on you as you move forward all of that could really think could be great in a discussion with a financial advisor who could really give you plan around that so I'd had to moneywise live.org. Click on find a CK interview a couple of them and find a financial planner who can really help you do a retirement plan to make these decisions and perhaps advise you on the management of these funds moving forward.

Rose thank you very much for your call.

Sorry to hear about your job. But God has a plan for the rest of your life as well. Thanks so much for calling in today and thank all of you for listening for joining in today. Enjoy the program. Please tell a friend and remember that moneywise life is a partnership between Moody radio and moneywise thanks to our technical crew today. Amy Debbie T Maria hanging out to along with Rick Trostle join us again tomorrow