5 No Return Home Renovations

Cable channels are full of shows that claim a home renovation will get you a better price when you sell. But the truth is not every project pays off so much for reality TV. If you've ever done it. However, you know the modeling your house expensive proposition. So today kingdom advised Pres. Rob West revealed some projects where caution is advised and will take your calls on anything financial 800-525-7000 800-525-7000 times more five no return home renovation sets next on moneywise. Okay Rob you're sort of a raining on our parade today when it comes to remodeling projects because conventional wisdom says not to mention the TV shows I just mentioned that they will increase your home's value but I guess maybe that's not always the case know it isn't. Stephen will get into that in just a bit, but first let's look at the numbers according to a survey by the national Association of realtors. We spent nearly 400 billion here on home renovation home advisor says that's on the low in the average remodeling project runs from 15,000 to 45,000 on the high end it could run you all the way up to 200% depending on the project. Obviously not everyone remodeling a house is looking to make a profit, function, and enjoyment are clearly important considerations as well, but if you plan on selling your home someday and certainly if it's in the near future you need to carefully consider cost versus return so wow what's first on our list of projects that don't often pay off while it would be a family favorite Stephen inground swimming pool.

Yes, it's a great way to beat the summer heat. But consider the cost before you get your feet wet. Installing a pool could cost around $50,000 upwards of 100,000 depending upon the part of country. The country your end so you have to enjoy taking that dip. You must add to it. I will mention the extra cost of maintenance and insurance, not to mention electricity and for all of that.

The survey show you'll get back just 43% of what you spent while you know the sort of reminds me of the definition for for the good purchase of the boat. Something along those lines and that's one that your your best friend owns this country so the same thing with the pool, maybe okay what's next well.

Our next no return project is installing new carpeting throughout the house. Now you'd think that would be a plus but get this, it could actually lower your home's value is the buyers don't like carpet. Maybe because it tends to gather dirt and germs and if they do like corporate what are the odds that don't like the color you chose a much better alternative is of course more expensive wood flooring. But the survey showed that it will net you about 7% in the way of a return on your investment.

Not too much. Okay, forget the carpet go with Wood. What's her number three project that often doesn't pay off. Well, that would be going bonkers in the master bedroom.

Some folks like to expand by moving the wall and decreasing space in another room or they'll put it in fancy stuff like French doors and a gas fire pit fireplace surveys show, the more you spend, the less you actually get in return of the closing table, with the average return just about 50% of what you spend on the master bedroom. Instead, consider a fresh coat of paint and maybe upgrading a few fixtures to stay in the room okay to do something here. That's probably uncouth and appropriate and downright rude. Rob, I just don't care. Okay, do you have a gasoline or place. Do you have a gas but her place in your bedroom.

No, I don't get me there were low class like that I write were up to number four I guess.

Is this where you talk about the kitchen.

It is actually in the results are really surprising because you often hear that the kitchen sells the house and while you don't want to have run down appliances and beat up cabinets, a major kitchen renovation get this could run you over $100,000, it would have to cook your meals for you to make a payoff of the survey showed that a major kitchen renovation returns just over 50% of its cost, to some extent, the less you spend on a kitchen renovation, the greater the return a minor overhaul would cost just over 20,000 with a return of over 80%. So even then you don't get all of your money back. We should mention that remodeling projects in general can be selling factors they may increase the likelihood of selling your home, though not necessarily at the price you want.

Okay now I hear music in the background which probably means we can't get to our fifth and final home sell if you will absolutely come back will talk about that renovation and take your calls. 800-5257 buying a home is the largest most nerve-racking purchase.

Most of us ever make. It doesn't help that you're entering a maze of unfamiliar words and confusing options that can leave you intimidated frustrated and afraid. You can take advantage of navigating the mortgage mates by Dale Vermillion help you clear up the confusion on rack your nerves and make the best mortgage decisions possible with confidence navigating the mortgage maze available when you click the start button@moneywiselive.org you have money in a retirement account or just a general investing. You know, the stock market sometimes possible to enjoy both profit and use of mind and investing no matter what's happening.

You can see a short video webinar on sound mind investing.org since 1990 sound mind investing funds offer financial wisdom for living well sound mind investing.RG.

Let's be honest this whole coronavirus thing has a lot of people rattled the Wilson panic mode so deep down inside you handling it anytime it from Christianity works.com we know human use is how things stock markets crashing retirement savings event writing this is folding it's easy to go with the flow. It's easy to late panic sitting we know that God is in control will at least in theory.

We know that we should have more fights, but King David faced more than he's fair share of threats but right when he was in fear for his very life. This is what he discovered I sought the Lord, and he constantly and he delivered me from all my fears all my heart I believe that that's what God is saying to you today seek the Lord, he will see you he will delete the from all your fears 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 while honoring 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 yesterday. Moneywise, this is a program that helps you find God's plan for your financial life today for just a few minutes talking about.

I know return home renovations and if you have an example of home renovation that really didn't pay off in the end, or something you would definitely redo pro or con, good or bad.

Give us a call or anything else financial 800-525-7000. We have open lines 800-525-7000. Okay Rob were on our fifth and final home renovation project that won't pay off most of the time.

What we have.

Well, that would be the one that some more popular in the South, perhaps less so in the north and it's the sunroom connection be a great place to hang out in nice weather letting sunlight in keeping the bugs out, but with an average installation cost Steve of $30,000.

It's a losing proposition. As far as return on investment which is often less than 50% in a compare that to the cost of a patio umbrella and I came up off you want to just give this serious thought and any other things to consider before you write a big check for home renovation projects yeah will let me just say one thing you certainly have to consider is whether the project fits into your budget.

Obviously, it's best to save the money first. But if that's not possible. Folks often take equity out of the home to pay for the renovation. We certainly seen a lot of home appreciation over the last decade, and many folks are tapping into that but also make sure those payments are to fit into your budget. If you refinance your mortgage and take cash out to renovate. Make sure you don't extend the term of the loan. Make sure you save it least a point on the interest rate and make sure you're going to stick around for a while if you take out what used to be called a second mortgage. Make sure you go with a home equity loan. I would advise that over a home equity line of credit or HELOC because the kulaks generally have variable interest rates rather you get a set amount of money at a low fixed interest rate with a reasonable repayment period and get that thing paid off as quick as you can.

It will that's a good suggestion and that comes obviously a directly from our host Rob West, the guy who's in the middle of building a 150 foot dock out to the lake so we can drive his cabin cruiser right up to the backyard. As soon as they put in the lake. He's got the yard and check the construction. The Corps of Engineers has said sometime between now and the next hundred years. They may put in the lake and Rob is out but I don't think any of that is true.

Actually, none of that testing may make things up. Well, maybe 800-525-7000. Let's begin St. Charles mole highly. So what's your question or comment today for Rob, 17 years old. He year heart patient way do we are blessed that I handle are been urging me to read our two-year-old purchase with you. I like if he were to pass and I were monthly. My outgo would be lower so you're just wondering whether that makes sense in this environment. Lisa there. Okay, tell me a little bit about the mortgage that you had heard you say it's two years old.

Was it a 30 year mortgage. When you started. Okay, cut an extra amount every month onto the print okay very good and you plan on staying in this home for quite a while. Is that right at okay all right very good. Yeah, you know, I think the opportunity here is that you perhaps could go ahead and lower that interest rate you know right now it's not uncommon to see you know 2.875 something like that.

I know I average mortgage rates dropped just again I was reading this morning to to just below 2.9% you want to find one you need to shop around where you don't have any points on the front end maybe a small origination but you really want to compare the cost.

I think the key is in no given that you're just two years into this you're probably going to end up starting over with a new 30 year loan but with that lower interest rate you you will likely see a reduction in the payment. I think the key is just making sure that this home and the new payment fits well within your budget. Even if the Lord were to call him home and just recognizing that if you were to make a decision that you had to move because the resources to start there, you can end up having this affect you negatively, in the sense that you wouldn't have paid back the cost of the refi in the form of lower interest because it's going to take several years for you to cover the cost of the refinance before you are kinda back in the money, so to speak, and at that point, then you'll definitely save over the life of the loan, but if you were to sell this and move on. Maybe you decide to rent something or you downsize are you looking for something with less maintenance, or just level less overall expense than you know that something you really need to consider. So I might ahead and work through your budget. What would that look like if you didn't have his income, but you did have this new lower payment. Your one rule of thumb we look at is to say, I would like for this principle, interest, taxes and insurance payment on the mortgage to be less than 25% of your take-home income, whatever that might be from all sources and that's just kind of a general role of thumb that says okay then we'll have enough left over to do all the other things cover our bills and expenses in discretionary spending and giving and whatever else might be in the budget so I just want you to think long and hard about it and do some forecasting in the future to make sure it would still work for you and if you believe it will and you feel like the Lord would have you to stay there that I think you really need to shop around bank rate.com would be a great place to go to look at some of the online that mortgage providers but then you can also check with the local mortgage broker. Perhaps one recommended or in your local church Lisa were glad that you called today. Glad you got through. Thank you very much Alice try to squeeze in one more before the break.

Sikora is in Aurora, Illinois, listening to our good friends of WMD and what's on your mind today meant good afternoon. Thanks for taking the call.

Mary home and now we sell our home.

The second home and I was wondering if I roll over the profit that we make from that home but I avoid paying taxes on that.

Yeah I will call the 1031 exchange. It gets its name from section 1031 of the IRS revenue code. It basically allows you to avoid paying the capital gains when you sell an investment property. Of course this is a necessary, but your primary residence meeting you been in it to the last five years because you have that to 250,000 or for a married couple, 500,000 in profits exemption where you wouldn't pay any capital gains but for a second home, an investment property. You absolutely can reinvest the proceeds from the sale into what's considered a like kind property and you know there's pretty broad rules on what that means an individual rental property are rental property or investment to investment that should cover it and you need to do that. There's a certain time periods whereby you would have to actually identify the property and then actually get the money in in the form of the closing so that would be the way to do it Sikora.

Are you planning on buying another investment property know we have a primary home and not at home back until late. But I was unable to want to roll that money into our existing home okay so then that's not going to work because you would need to roll that into a like kind property and putting that into your existing primary residence would not qualify under the 1031 exchange so that means you are you have some capital gains. That's not the end of the world. You just need to plan for it and so I would visit with your tax preparer if you don't have one. I'd seek one out what they're going to determine is what is your true gain on this property. Subtracting the selling price from your original purchase price any improvements, as well as the transaction costs and come up with that the true net profit, and that will be subject to capital gains tax and they can calculate that for you. Certainly you don't want that sneaking up on you go ahead and figure out what that is now so you can set that money aside, you probably can want to make an estimated payment on that now as well. Sikora.

We hope that works for you.

Thank you very much I were going to policy or for a brief break them with them back and speak with Greg who wants to know about credit card protection. Agatha is unsure of what her 30, 30 year term insurance policy is really all about. Will try to help these people and perhaps you 800-5257 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 hairs 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 and sent everything to actually reasoning.please he's gone he's gone reason just because not no reason to 20 doing something reasoning experiences delays online experience really.org, 20, 21, edition 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 moneywise and I how to work today moneywise live wherever you are doing fine.

This is calling program without your phone calls. We just wouldn't have a whole lot to do or say something your participation, Covington, Indiana and I Greg what you question for Rob world high-tech world world about hacking and information overload? Do I need to hear one of these credit card protection programs like like makes, or is it one of the thing that is that I can do without. Yeah well it's a great question, Greg and a lot of folks are growing more and more concerned over identity theft and the compromised accounts because we hear about it so frequently the scammers and fraudsters are very good at what they do, but at the same time, the credit card companies and financial institutions are upping their game at the same time and so it's back and forth, and I think it's here to stay. I don't think it's necessary unless you're in an unusual situation were perhaps you already had identity theft or something like that I keep in mind Greg.

You have two forms of credit protection already. Whether you know it or not. Both of them free. The first is your only responsible for the first $50.

If your card is lost or stolen and the thief uses it. If you report it before it's used are not responsible for any fraudulent charges and certainly as soon as you see him try to get that in in a timely basis that one of the main reasons though people use a credit protection services for what they're called credit alerts where you get an alert if somebody applies for credit in your name.

This though is often limited to some of the upper tier plans, which can run you upwards of $30 a month and that's where the second level of protection comes in. That's absolutely free and that's called the credit freeze, you have to do it with each of the three bureaus experience Trans Union and neck with fax, but essentially it blocks access to your credit reports, which is protecting you against scammers attempting to open a fraudulent account because in order to do so they would have to impersonate you and your credit would need to be checked which it wouldn't be able to be without that pin number so I would encourage you to start their monitoring your accounts on a monthly basis to make sure you don't see any activity that's a suspicious number two placing that credit freeze on each of the three bureaus which by the way, is no cost and it's absolutely free and then number three you can want to pull a copy of your credit report.

I recommend that you do that at least quarterly just to scan it. Make sure there's no new accounts or inaccurate information, but in my view they think again. Unless you have an unusual situation we've Artie had something real severe happen like identity theft. I think for most folks, if you're doing those things as well as just general good habits with regard to online transactions, never doing business from public Wi-Fi using password manager and changing your passwords regularly and know those types of things then do. I don't think the credit protection is necessary in some extensive a lot of people out there and they're pretty sharp and I thought I should.

It's just not good enough today to do what I did last week, last month, but got to stay up with things and things are definitely changing, and cancel it.

That's good information: not all together all right.

Very good. Greg will listen. If you have other questions along the way.

I give us a call, and by the way, one more quick lunch. Never click a link in an email you get. I don't care if the logos there from somebody you're doing business with just don't do it because that's the oldest scam in the book. We appreciate your call today.

Thanks Greg, great question. Cleveland, Ohio Agatha, what's on your mind at thank you for the house in Cleveland for $69,000 in 2008, with a beautiful home and neighborhood changing. I'm getting ready to retire and and I have questions about it much. I want to share my home is but I have beautiful things and I think he would get the truck. You know all people are hoarders and 69 and get my stuff in there, but I have felt that people can use, especially at a time like this. I love the house but I'm about to take him because he's my only getting 30 and even concerned about me.

So I want to know I will find a post office I'm going to have good money company and I wanted to buy the house at night. Being a 6.5 which is ridiculous, but Wells Fargo is a boy from Washington Mutual though, the heritage homeport program where I can get one pump for financing to do something while I'm feeling here getting the house together so much better than have to be a okay well I certainly appreciate your situation. I think the key is making sure that you can afford the home and then if you can and you feel like you're going to stay here than it would be worth refinancing get a much lower rate, assuming you have good credit and income that can be documented and and I would look at doing that you stay on the line will talk a bit more off the air about what you need to know.

We appreciate your cold indeed redo Agatha. Thank you. Hang on the line that this is moneywise 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. 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 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 my name is Ryan communications major at the Moody Bible Institute Moody radio verse of the week is found in second Chronicles 714 if my people who are called by my name will humble themselves and pray and seek my face and turn from their wicked ways, then I will hear from heaven and I will forgive their sin and heal them that a second Chronicles 714, the Moody radio verse of the week.

Things are always happening at Moody radio God is at work in listeners all around the world. Monthly online newsletter uplift is changed in order to bring more listener stories more program updates and more listening resources be among the first to know about radios ongoing out check out the old new newsletter uplift subscribe my Moody radio.org my Moody radio. 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. Master your money a step-by-step plan for experiencing financial contentment.

Learn how to save, invest, and give wisely create a long-term financial plan and how to get out of debt. Find it all in master your money by Ron blue available when you click the start button moneywise to work the mayor of Portland has ordered bullies in Oregon's largest city to stop using teargas for crowd control during open violent protests that have wrecked the city for months.

Ted Wheeler says the order is effective immediately. Wheeler is a Democrat and was teargas 20 went to a demonstration against the presence of federal authorities dispatched to the city to protect federal property California authorities. They walk the road through the foothills of the northern spirit about of this week is destroyed or damaged about 2000 structures including homes and other buildings. The kickoff of the NFL season tonight with 17,000 fans at arrowhead Super Bowl champion Kansas City Chiefs will open the season against the Houston Texans at 22% capacity socks gave up an early game and move steadily lower all day the Dow lost 405 points.

This is SRN find yourself surfing aimlessly. I don't mean like in the water running on your laptop and you might want to check out our website.

There's lots of great info nation.

There you'll find a set moneywise.

The.org there are lots of free resources. Things like budget templates and ways to help your with your personal finances. What the Bible says about your personal finances radio archives from the last year or so.

How to find a certified kingdom advisor how to connect with a budget coach at no charge, and a bunch more so visit us today when you get a chance moneywise. Live.org go out to Pueblo Colorado I love Colorado though I understand that they had a snow emergency or something just a few days ago so you never know each reset. Thank you for your patience.

That was the snow in your area or was it further further north I don't you know you cleared up now all you yeah yeah super hey how can we help you understand you are thinking of spending a lot of time in school. Yeah, wondering what the financial investment would be for continuous alternative school for 12 your grandpa becoming a homeowner in kind. Wow, those are two big decisions and their quite different. So tell me as you think and pray through the Drees what God has for you, how he's wired you what your passions are, how that intersects with the which are gifted at the where you feel like he's taking you and what have you been thinking about pursuing in the way of your profession.

So basically what drives me as being a farmer on and right now presently working with the company call Colorado and work with the developmentally man up and going there for five years now and the thing about what challenges me about going to school for 12 years ago. I'm not a spring chicken, about 31 years old and I'm thinking if I can basically save enough money for) your luck be a homeowner God's work for the remainder of my life and focus like yeah and what is it that would require 12 years of schooling. What is it you considering saw him hoping to at least score for Masters in psychology okay and would you have to borrow for all of that or do you have the money for solo work for years before start and I money to have been played for those two years is what all school okay do you have a sense of what the total cost would be in which you my graduate with in the form of the student debt without a coolant that I think I'll be able to bachelors level while looking probably $40,000. Okay all in right yeah okay well you know I mean, my team tells me that the median salary for a psychologist is around 85,000 certainly on the low end it could be in around 40 to 50 on the high-end hundred and 25+ so I think the key here is we certainly wouldn't want to borrow more than you would expect to make in your first year salary, which is mean, which means that you should be able to pay it back within 10 years.

I'd prefer you borrow nothing, but if you have to borrow something. The key is to do it in a way that's manageable and consistent with your earning potential after school so at that point, I think it's really just a question of where is the Lord leading and that's something that I think you need to give earnest prayer I would be talking to those around you who know you best. Perhaps you could speak into your life, what they see in you in terms of your gifting and how God is wired you. What really gets you passionate.

I heard of a bit of that passion in your voice just as you describe what you've already been doing, and perhaps getting that formal training that Masters in psychology would allow you to take that to the next level.

That seems like a realistic plan to me.

And the fact that you're going to save for the next couple years while you're already working to put that toward your education and graduate with what I would call a manageable amount of debt given what you would expect to earn as a licensed psychologist makes a lot of sense to me. What I like to do to perhaps help you in this decision-making process, there's a tool out there called career direct and it's basically an assessment that's can allow you to uncover God's wiring in your life.

I'd like to send you a license for that free of charge. Just as our gift to you that you can go through complete data and perhaps that along with your prayer in conversations with others who perhaps have already pursued this line of work, as well as friends and family around you will not allow God to clarify where he's leading you. I love the idea of you being a homeowner but investing in your education makes a lot of sense to me. So you Drees. If you hang on the light were to get your information will get that career direct assessment out to you right away and I think it'll be a real blessing, but injury so we don't have to tell you, so I guess I will anyway take your time with this, make sure you pray a lot about this. No situation or no change in your career is is irreversible, but obviously it at your age you want to makes a couple of good moves so that you don't have to go backwards and start over again and something totally unrelated. So be sure you spend plenty of time praying about this. Ask your pastor and your church prayer with you as well and we will as well. Let us know how things work out. Thanks so much less try to squeeze in one more Dade city, Florida Susanna, how can we help all all anyone here are children and one of our children's bedroom. Now, no wait for him to conclude that it would be retiring here and we would prefer another tell right. Not sure how Yes I can certainly understand that a boy my heart goes out to you Susanna for what you've been through this year. What is the financial decision you're considering at this point. How can we help all home or home and talk like everything when I traded in for something great. If you well know what we want to let water and little we went own our home in a inherently probably. Well, I think you know that always comes down to a couple of things number one you gotta give a lot of prayer the Lord is giving you real conviction to remain debt-free than I would do that but if you feel like you have the freedom to borrow and have an obligation out there, which I think is permissible in Scripture that it's a financial question.

I'd say use a 25% of your take-home pay as a guide at the most, principal, interest, taxes and insurance. Stimuli will talk a bit more of the we will and will take some more calls at 800-525-7000. Most couples can't talk about yet. Most money books expected.

How can you create a budget for pay down debt. If you can even talk about spending or saving with you if you get tense about your just playing avoid money conversations altogether thriving in love and money like Chante and Jeff felt hot is for you and it's your screen when you donate $25 or more to moneywise live.org thriving in love and money for a better relationship not just a better project. I'm very glad I'm here to help you understand how urgent it is to share your faith every opportunity to the eyes of a layman and opportunities are everywhere. You might think you don't want to talk about God, but not true.

Especially not now, especially with all the anger and chaos and confusion is gripping America. Over 80% of your church know the world's out-of-control hope is a God who can make sense of the chaos and get this are actually looking for someone to sell them. That's you that's God calling you full-time service. Every tenure in public. Think about this, you're looking at. Will miss the rapture love someone interested, they may appear happy and energized with their loss. We left behind to face the Antichrist… Someone like you turn to foster God's plan. In your response to everyone every day closer to Jesus when they can hear is there is nothing more exciting than knowing God is using you to move people closer to join is not America.com. Have you noticed that the topic of dinosaurs in their extinction never seems outdated. Whether it's a new museum exhibit or other fossil discovery people are fascinated with how these creatures wiped out from this planet. Have you ever thought about what others say about you when you're no longer walking about two weeks after you even more important, what your future destination state according to the Bible you live on one of two places.

Every human goes to heaven. When your life's locations for all of eternity doesn't take much thought. It's God.

To learn more at www.chataboutjesus.com family this month somebody like legacy giving your family to send closer together closer to true financial freedom, practical advice to shrink the financial occasion in your marriage, budget friendly family activities and a lot more free moneywise. The magazine subscription is waiting for you when you wife's work/site is with us today. I moneywise live.

We have a number of calls to get all of them today, but let's give it old college try Akron, Ohio, and Carol Huck we hope you like praying about making actually. So I really will die right away. A small ranch home can all now what we thought about the fact that we owe three more years.

I $95,000 going.

You know, we might not get back to enjoying our family and church people by that question right before your sucking sound, but I can learn about what you got ready to class out or a home equity loan where people go with out the equity line of credit was better this yeah Carol.

I like the direction you're headed. You know, adding an addition to the home and I'm seeing that you could typically expect to recoup as much is 80% of that because keep in mind you're adding a full-fledged close. It's a bedroom with her closet, then you're adding in another room to the house which is going to be significant in terms of you selling it so I don't think there's any problem there. I love the fact that you're nearly debt-free on your home three years. Congratulations on really prioritizing pain that often so you have good equity as long as you really thought through the budget making sure you can afford to pay this off in a reasonable time prayer. I probably look at a 10 year term on this and as you have been. I would accelerate the payoff on it and I think the rationale makes a lot of sense. You know it's not just a financial decision. This is where you live in so being able to enjoy that as you said using it for ministry. I love that and being able to enjoy your family coming back from out of town and having a little bit more space so they can stay with you all of that makes a lot of sense to me. I would go with the home equity loan, even though it's probably not what the bank is going to push is the first choice. You don't need this open line you know moving forward you really just need a set amount of money I get a general contractor who can give you a guaranteed price. Make sure you borrow the amount that you need to make sure.

Again, you keep that term reasonable and try to pay it off just as quick as you can.

I would go to bank rate.com. It's a great website to really evaluate who's got the most attractive rates with the lowest closing costs I'd look for one with no closing cost there out there and I think in this low low interest rate environment really unprecedented interest rate environment. Carol I think locking in at that fixed low rate on a home equity loan with only the amount that you need and then paying it back as quick as you can makes a lot of sense. Again also count the cost. Make sure you put it in your budget and make sure it fits and we just take this opportunity to mention our brand-new moneywise app which could be helpful to you if you go to your app store and search for moneywise biblical finance.

You can download our new app which will help you put your budget in and make sure everything's good fit well but I think that's the direction I would head and that will certainly be thinking and praying for you as you proceed Carol, thank you very much and enjoy those new grandbabies as they seem to be coming along which you Marsha and I are fairly new grandparents and who thunk that we would need space someday, not only for when our children might come back, but from for when their children need some extra space… Catalyst for surprises. Doesn't he sure doesn't, and something tells me that you're probably more concerned about having room for the grandkids than you are.

Even your kids.

Just the way you talk about those granddaughters. I am grand so special pictures here I'll show you how I know you said you don't have to be rude Orlando Florida Latoya you're on with Rob.

I had everything I worked for and found out that everything allowed to draw from a 401(k) without having that early withdrawal penalty because I'm not for myself that I started my math portion of it was a good idea take out what was required to pay right now and again… My combine to take out and I'm not here what you owe right now on your student loans total of about 15,000 okay and are you paying more than the minimum payments you and have you run an estimate on how quickly you think you'll pay this off in full. Just on your current trajectory, no okay I'd look at that, you know, pulling money in your 401(k) is usually the last thing we encourage folks to do at some of the most expensive money you have access to, and I agree with you the care Zach does waive that early withdrawal penalty and gives you three years to pay the taxes and if you pay it back. You can file an amended return and actually get the tax back and all that's great because you wouldn't have that added 10% penalty, but it is going to be taxable to you.

So whatever you pull out is to be added to your taxable income for the year and I think perhaps even more than that. That was money that you put aside to be there down the road and so this is money that's no longer to be compounding for you year after year so that that when you get to retirement. You have something there for you to supplement Social Security and other income sources. So I think I'd prefer you just to keep your lifestyle lean try to go back to that spending planner that budget look for areas to cutbacks you can increase the margin so perhaps you can consistently month after month be able to put some money against that student loan over and above the minimum payment. Just get that paid off as quick as you can. 15,000 is a lot of money. Sounds like a lot of money but it's manageable and if you stay focused on it. I think you should be able to get that paid off in a reasonable period of time and still have your 401(k) intact, so I probably pass on that option and let's go back to the family budget and really focus in their toil were glad to get through today. Thank you very very much and I think we have time for one more. So let's us stay in Florida, Ocala, Julius, what you situations are all paid by my employee 1040 switch to another company pay the 1099. My question is I want to hold it because of the 1099 1040 if I should open a LLC. So will not be considered a contractor to him. And now, should I open the contract coming under 1099 yeah well you know forming a C Corp. can be really beneficial to you Julius.

You don't get the you miss out on having to pay some of the taxes that you would as an independent contractor. You can expense certain things against that and you can take part of it as distribution of profits as opposed to taking all of it as salary which has some added tax benefits so I would consider that giving your line of work, just to see if the added cost of maintaining the Corporation and the annual filings outweigh the D. The benefits that you could receive by having your own corporation which would be what your employer pays moving forward. We recommend because this gets somewhat complex and it's really dependent upon your unique circumstances and situation recommend you connect with the tax preparer or CPA there in Ocala. If you don't have one, you could go to our website moneywise live.org.

Click on find a CK look for one in the tax and accounting area and just pay for some time. Perhaps this could be your tax preparer moving forward. But if not just somebody who can help you evaluate the pros and cons because you would need to set up the books you need to keep it separate. You need to do it right, you need to make sure you get the annual filings done but you want to fully understand what the benefits are from a tax standpoint and they could be significant. So I think it's worth looking into the great question though, and let us know what you decide.

Down the road.

We appreciate your call today. We do indeed Julius thank you very very much and Rob almost out of time here. We've had a lot of housing questions today are opening topic had to do with remodeling your home when it comes to buying a house and I know you've you've had a few in your life so far will what's the key what's the primary mistake. You don't want to make when it comes to buying the literature first home or your third home. Yeah well I think the key is said, trying to buy too much house and especially in this low interest rate environment. We can be encouraged to go out and perhaps buy more house than we really need. So don't start with the neighborhood. Don't start with the anything else.

Start with that budget and make sure that you can certainly keep that payment principal, interest, taxes and insurance less than 25% of your take-home pay. By the way, if you don't have a budget Steve great time to mention our brand-new moneywise app which, if you haven't downloaded it, you need to just go to your app store.

Either Apple App Store Google play search for moneywise biblical finance.

You can download it today or you can go to app.moneywise.org and read about it there but great resources. Not only can you track your budget. You can listen to the program. There is always a pleasure, sir, thank you very much will come back tomorrow and do it all over again. I look forward to things moneywise lives, a partnership between woody radio and moneywise media.

My thanks to our technical crew today in Chicago. Amy Gabby G and Rich are around W. Times More Dr. carefully where your mask doing this again tomorrow for another edition moneywise