P2P Lending

Heard a friend or family member saved inmate upwards of 10% on their money through an innovative new investing idea P2P lending, but then they tell you about the risks. People fed up with more restrictive banks are turning lending which can easily traditional savings account but not without some risk financial planner and future.

Rob West has pros and cons of your questions on anything financially hungry 55 7805 five 7000 more lending snacks right here on moneywise. Okay Rob, let's start with the definition of who you might what is P2P lending spelled P the digital or the digit to then another PE P2P lending that will first Peter P stands for people to people. It's where investors make unsecured personal loans to individuals and businesses and as you pointed out, Steve. It's not unusual to get average annual returns of 7 to 11%. But make no mistake, if you take money out of your savings account and invest P2P you're no longer a saver you're an investor and all investments carry risk and these are unsecured loans right well let's say you want to borrow money and by the way, yes they are. You go to a P2P website and fill out an application of the site then gives prospective lenders that basic information plus the loan amount and purpose and an assessment of the borrower's credit worthiness. Well, let's switch horses.

Let's say you're the lender you go to the site looking to invest. You look through the information provided by borrowers and choose the loan or loans you want to invest in that could be all of the loan or just part of it borrows are usually limited to around $35,000 in what becomes an unsecured personal loan and the terms usually run 3 to 5 years.

Okay, you mentioned credit worthiness how to P2P sites determine that while they base it on several factors.

The borrowers credit score income to debt ratio. The amount and purpose of the loan.

In the term all those values are then converted into a single number, usually from 1 to 10 or so and that indicates then the risks to the investor. It's also used to determine the interest rate, the riskier the loan, the higher the interest rate and the higher the potential return sure okay well it seems like this would be plenty risky because these sites will attract borrowers who can't get a conventional loan. I suspect what you think so, but typically that's not the case. P2P sites have many of the same credit requirements as banks are. For example, they won't accept borrowers with a credit score below 600. The average is around 650. Also, these sites will accept applications for borrowers with a recent bankruptcy judgment or even a tax lien Walesa plus oh what are some of the other advantages to P2P lending yet. We've Artie mentioned the potential for a bigger return than you can get a bank there's also the option to invest in just a piece of a loan so you're actually buying notes or shares of a loan and you can do it in denominations, as well as $25, so it lasted ineffective your toe in the water without having to put a lot of money on the table and one more advantage. Steve the P2P site handles the entire administrative end of the loan, like underwriting, closing even disturbing the proceeds and collection all of that for about a 1% management fee. Okay.

Who are these P2P sites you could Google to find any number of them. The two biggest are the prosper marketplace and lending club between them. They've issued listen to this more than $22 billion in loans while 22 billion and the wonder with investors, sometimes making 10% of their on their money sometimes but it doesn't always happen right so what are the risks well. I think it was Will Rogers who said I'm not so much interested in the return on my money as I am in the return of my money.

And you definitely need to consider that before investing in a P2P loan. These loans, as you mentioned earlier Steve are unsecured, meaning there is no collateral behind them that you could go after a lawsuit entirely possible for a borrower to default on a P2P loan, meaning you could in fact lose all of your investment.

Of course that's why the potential returns are so much higher than with a savings account at a bank.

And unlike your bank savings account. P2P loans are not insured. So, if a bank goes under your savings are insured up to 250,000 by the FDIC. Not so with the P2P loan you could in fact lose everything. Is there a scripture or two that might apply our three or four. Matthew 1016. Be wary and wise as serpents also will.

Ecclesiastes 11 to give a portion to seven or even a do not know what disaster may happen on the earth. You want to be diversified. Don't put all your eggs in one basket and don't take much okay sounds good to me. This is moneywise. 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 live if you're investing for retirement or any other goal you may be wondering if it's possible to enjoy both profit and peace of mind, no matter what's happening in the market. Sound mind investing has a short video webinar on the topic of sound mind investing.org SMI has helped tens of thousands of Christians learn to be wise and faithful stewards in the area of investing profit and peace of mind matter what's happening in the market. Sound mind investing.org do you remember that old man from the 1970s, the chitinous, it's the drink you have not having a drink on Benny Donna claims is become part of the language chitinous drink looks as though it's alcoholic, but really it isn't a chitinous anything is something that looks real but isn't? Is it possible to have a Clayton's person person is not really a person biting his mother's womb is that a chitinous person. Or maybe the street people. We walk around on the footpath almost always smelly like like this people's work is in the factories across Asia who make the toys and kids play with the clients we we offer a few cents now I chitinous people.

Jesus said I've come to bring good news to the poor and to set the captives free.

I wonder when he looks around with. He sees any chitinous people on this earth. I wonder if that is robbing you of freedom and peace of mind. Christian credit counselors can help where nationwide nonprofit counseling organization has helped over 3000 individuals in the last 27 years get out of credit card debt 80% faster while honoring that data and phone to learn how Christian credit counselors can help you visit Christian credit counselors.org Christian credit counselors.or call 800-557-1985 moneywise live here along with us talking about lending just before the break and were so glad that you're here today the number if you want to call him with your questions.

800-525-7000 800-525-7000 where going to tell all of your calls today and also some emails we do take on occasion emails that come into us and that we've got a few that I would like to get to today. We don't always have the chance to do so. So let's do that now. First comes from Betty and Betty just says I'm paying in advance on my car, I received a notification asking if I want to pay toward principal only is that a good idea and Betty appreciate that you know we certainly do want to pay against principal whenever we can.

That is over and above the scheduled minimum payment and when we do that. It's always a good idea to ask the lender how they want to receive that often times it might be if you're sending a check with a coupon you actually note that if you're making that payment online.

You can note it there as well, but I think the key is you don't want that payment applied to future payments you wanted.

In fact, to go to principal. Without your intention and so just make sure that's applied appropriately that it's not being applied to perhaps next month's payment, but in fact that extra mount is going directly to principal. If that's your desire and by the way, keep up the good work on that. Betty was also to Greg's question. He sends this by email. He says I'm afraid of getting my credit cards hack to do.

I need to have a credit card protection service, or is that just a waste of money for most people, and here's what I would say about that. You know, using the freeze option with the credit bureaus is one way to protect yourself against somebody opening a new account fraudulently in your name which would be identity theft and so take advantage of that free service, but Greg as to this particular question about your credit cards being hacked that meaning perhaps that that somebody is using a card of yours. They've got me information somewhere. I think a couple of things there number one always be monitoring your credit accounts are your financial accounts to see if you see transactions that aren't yours and if you do obviously notify them immediately. Good news is the credit card companies are becoming very savvy to all of these tactics being used by these fraudsters and often times they will alert you to the fraud before you even know about it but do your part.

Stay on top of them. Also, be sure you use strong passwords and change them regularly, but there's really nothing that you need somebody to do for you Greg. You don't need to pay for a service you can do all of this yourself and that you can do it all for free suggesting on top. Once again you're listening to moneywise live he's Rob last time Steve Moore and we have lots of open lines 800-525-7000.

These fraudsters, as you call them Rob. These fraudsters these scammers. These bad actors, who are they, why did they do these things and what you say we get one of the program some time and interview him or her what he thinks that well yeah, no, no, I don't think that's the idea. I will say though, Steve, you know, most the times they are in other countries. Obviously there leveraging the Internet in a very sophisticated ways to take people out of their money. And you know you've got a stay on top of it because it seems like as quick as the advancements in the security take place. There one step ahead with a new scheme or tactic so we just going to stay on top of let's begin by going to Akron, Ohio hello Amy, how can we help you today. My mom had transferred some stock in the popular 20 years ago and I like original AT&T outlet or something like that north agreement and everything I wanted it donate them know what the best way to go about getting that yeah well obviously the cost basis for you for stock that was inherited goes back to the value of the security at the date of the inheritance and so it's a stepped up basis, essentially. But given that the inheritance occurred a long time ago. Is that right but not the original purchase plan. Did you receive these now I received the market is still alive and can't state bank when caught up. Yes, I see okay yeah what makes this often very difficult. Amy is you know that there may be splits you know it that's typical stock split coding the reverse split, and there some cases there name changes depending on how big this company is so one thing that may be helpful is just to go to the investor relations department. Every publicly held company that issues stock has an investor's relation department give them the date that you actually received these and they should be able to help you determine that cost basis which will be pretty critical. Now if you're planning to donate these obviously that's can be a great idea because they will go there won't be any tax there. You'll get the, the value of the.

The amount that your giving without you having to focus on the other day the tax it would be due normally as capital gain, so that could be a very effective way to bless a ministry and you not to have. To pay a whole lot of tax on this money and if you need help with that or more information, connect with our friends at the National Christian foundation in CF giving.com okay.

Amy does that help the sick, covered for you if you think how great thanks very much. God bless you Casey is in Coconut Creek, Florida Casey what's in your mind, and great the call because the now you got about $36,000 that while credit card and and car payment. Yeah, and start to figure out your and our right to an it probably be couple years but apparently all would be a bad idea to get together how the mortgage right now while having all of that will be better trying pay at all.

Casey give me a rundown of what you have here.

I heard you say car payment, student loans and credit cards give me the value of each of those loans serves 26,000 car payment 7000 and credit card and 3034 well okay are you having 3430 400-3400.

That's a little better soon. Are you adding to the credit card debt each month or are you living within your means to me, what your current state of your budget year year we paid off a lot of credit already and what I still love that I sell okay and you find yourself able to stick to that spending plan and and if you are do usually have a little bit of margin left over at the end of the month. Yet we do great, great, but that's excellent couple things number one is our new moneywise.

Apple really help you track the spending with the digital envelope system. You can download your transactions.

Make sure you stay on budget.

You and your wife can share an account and I'd love to give you six months of a pro subscription so you can get all those transactions coming down automatically. It's the moneywise applets on the Apple Store.

The Google play store just search moneywise biblical finance.

You can download it if you stand the liner team will get your information and will make sure you get a six month Pro subscription so you can download everything automatically and have it automatically categorize number two. I'd love for you to connect with her friends, a Christian credit counselors to see if it makes sense for you to put this credit card debt into a credit counseling program. It'll close the account, but you might get the we probably get the interest rate down pay off a lot quicker. I think though, I'd like to see you stay on this plan.

Definitely get those credit cards paid off in full and then start saving for the house. Have you put anything aside for the down payment yet know somebody outside of you credit card yeah okay thousand dollars emergency okay so I think there's a couple of other priorities here before we think about buying that house.

Casey is much as I know you'd like to get in to your home. I think number one, we gotta pay the credit cards often full. Number two. Let's get the emergency fund up to three months expenses and then we need to really save 20% for that down payment, which I know is going to take some time, especially in South Florida with real estate prices the way they are, but you will be glad you did because you have some equity going into the home. You won't find yourself upside down and you will be taken on a major mortgage without some really solid pieces already in place on your financial situation here. So as much as I'd like to say go for it.

I think it be better for you to wait and do that case you were glad you called. Today we wish you the very best as you work through the use various dynamics.

Thanks again. Call him back call from Boynton Beach. Is this a good time to some house all that and more. Right after this many people adopt an attitude toward marriage and finances that it'll 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 Dean will help you discover God's approach to growing your finances and strengthening your relationship with your mate and cultivating godly joy, money, and marriage God's way is available and moneywise live.org and everything to match the peers for my girls were little different still best friends in South whenever the girls in just the sweet nature see why any other Starla Johnson; maintain something cry lately all my heart.

Part with your you are completely relations experience more.

Many people adopt an attitude toward marriage and finances that it'll 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 Dean 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 and moneywise live.org to moneywise. Not finding God's plan for your financial life that would like to try give us a call first 800-525-7000 down to Boynton Beach, Florida Orlando. Thanks so much for holding my friend how can we help you.

Thank you for taking my call.

I have a house for my balance is about 210,000 I hear from the American maybe I can get five 554. The house we are praying you know for guidance you note to see you know is starting to sell it or care. And now I don't know what you think about the market today should I do it now should I do good. Later, well, tell me what you're trying to accomplish me. This is one thing to say is this a good time based on the housing market and the part of the country you live in, but it's also your home right. This is not an investment. This is where you live right where I leave and I would printed on site so all you are trying to downsize. Okay so you decided yet. You don't need this much house you want to try to buy something a little smaller, maybe less upkeep, less expense you know if that's the case Orlando.

I wouldn't hesitate to go ahead and proceed. Here's the thing. It happens to be a really strong sellers market in most markets in the country and I would certainly include South Florida in that because there are more buyers then say there is inventory and so things are moving typically very quickly.

We had a housing market that the last decade is been incredibly strong temporarily cooled off a little bit in the height of the pandemic, but it's already now picking back up significantly so it's a great time to sell.

It's good to be a more difficult time to buy for the same reason and usually that's the case you unless you're entering the housing market. For the first time you'd been a renter in Nelson you're buying your first home that it probably has a little bit you could work more, either for you or against you depending on what's going on but if you're selling one and buying another really doesn't matter what that is going on the housing market because you're going to make do well on one side of the equation and you're not. So, do so well on the other, either to get top dollar and then pay top dollar or you going to sell at a discount invite a discount. I think the big ideas. Where is God leaving you what you have in the way of resources. What is your spending look like and what values do you have and how can you reflect that in how you're managing God's money and if you want to downsize to have less going toward housing so you have more margin for giving and savings goals and other things that the Lord is late in your heart that I would say don't think twice about it and move forward. And I would encourage you to get a realtor in there to help you stage the home.

Think about any minor maintenance you need to do before you sell and then go ahead and list it and then really be thoughtful about how much you want to spend on the next house based on the budget that you have and what God is leading you toward, but I think at the end of the day.

This is as good a time as any for you to go ahead with these plans. If this is where you feel like you should be. If you really want to downsize Orlando you know when you downsize. Don't forget you'll be moving into a house that is maybe more expensive than a once a year or two ago when you were thinking of downsizing.

So do your due diligence. Do your homework before you put the current house on the market. Okay, your advice, and now you make your goal, you know, to get rid of the mortgage.

That's a great goal. I love the idea of you trying to become debt free and obviously you've got to looks like potentially $240,000 minus the cost of the transaction that you can put into your next home. Hopefully, with a much smaller mortgage or even buying for cash less glad you called today. Thanks very much into well, let's stay in Florida, Deerfield Beach, Florida Harry, I what your question for Rob West hi Rob hi Steve, I have my question is regarding credit score.

I got apparently 70 credit cards. We don't have a zero balance. But I opened a few come on, where if you spend so much money and so many months you get will result. I signed on for a couple of those and took advantage of that. But now my credit score were about five of the six areas (below average because I had seven in two years count.

What's the best way to get rid of those are clean those up and help the credit school yeah well the good news is that unless you're going out looking to take on a new mortgage or qualify for a loan. Yeah, you probably have excellent credit and any temporary dipping your score as a result of closing these cards can be minor, it probably doesn't even impact it all again unless you're out seeking new credit and there's gonna be a benefit as you said, by reducing the overall excuse me credit that's available to you just because every one of these has a credit limit even though you're not using it. The other issue that often will hurt people in these situations is if they're carrying a balance reducing the overall debt pushes the credit utilization up that won't affect you so I would take the total number of cards you want to cancel and maybe do half of them now and then wait a few months into the other half any impact is going to be minor and I think you'll be glad you did it because it's less to keep hearing that you made it through today and I hope that information helps you as you work through the seven cards with investing is more than just returns. It's an expression of who you are and what you value is the way you invest your money reflect your identity as a Christian, and even tightly designed investments for performance and a better world so you can invest with the confidence to reach your financial goals while remaining truly are Christian values and commitments. We call this investing makes the world rejoice more is available@investeventime.com invest Eventide.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 William, a communications major Bible Institute radio verse of the leak is found in Proverbs 10 45 Slack hand causes the hand of the diligent makes rich, he who gathers in summer is a prince, but he who sleeps in harvest is a son who brings that's Proverbs 10 425. The radio verse. Things are always happening ability, radio, God is at work in listeners all around the world are 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 subscribe right now my Moody radio.org my Moody radio money and life run on the same track. Unfortunately, sometimes it seems like your money is heading in a different direction from your goals 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 at moneywise live to work from John's God, what else is boosting its over in the up-and-down COBIT 1980, Dalton hopes of an agreement before election day resident from taking to Twitter to declare open relief negotiations are moving along. Go big top economic advisor says the front team is dipping it's operated by rubbing its offer in advance to conversation between Treasury Secretary statement of Jenin, House Speaker Nancy Pelosi resident Ron says the federal emergency management is prepared as hurricane Delta continues to turn toward the southwestern Louisiana coast. It's now about 50 miles south southwest of Cameron, Louisiana with top sustained winds of 105 mph chunks rose again to David out 161 points.

The NASDAQ up 158. This is SRN news, check out our website. When you visit moneywise live.org. There you will find lots of sources are stories there with some items that can be purchased as well.

Also, easy way to find a certified kingdom advisor anywhere in the United States, and an easy way to connect with the budget coach at no charge. And of course that's also where you can make a donation to your favorite financial ministry. If you'd like. Just click the donate tab at the top of the page and think so much in advance. X Illinois Henry, how can we help you sir. Good afternoon. My call… Question and that is about 10 months ago I lost my job and at the time the mortgage company kind of luck yet.

If it was good to call directly to that nature. You no longer have to pay your payment we can postpone the payments so dragged on and it's been a total of 10 months. I am working now but during that time I've got I've accumulated about nine months of non-paying the mortgage and they were the ones you currently provided that option. No penalties or anything of that nature, but during that time my credit card site. Increase the balance in things survival mode.

Well, yeah, sure. And now I'm at that point where okay back in the workforce not making as much money as I make my wife is not making as much money as she used to make. However, be able to stretch things tight and not be able to afford our expenses.

My question, if you're able to answer not a mortgage company will need to requalify for this to maintain the mortgage or no really set how to do something. Yeah, you won't have to requalify Henry for the mortgage lender was the one that worked with you on the forbearance that resulted in you being able to miss these payments without any penalty.

You should be fine.

The care Zach doesn't spell out your rights on repayment in different banks are establishing different requirements and if the mortgage is federally back to can be could be certain protections there but bottom line is you have to make up those payments you want to contact the mortgage company to find out how the want you to do that. I suspect they're going to just add it to the end of the term, and so you'll just continue on past the current term until you pay off what was added to the mortgage and you'll be paying interest on this additional money for the life of the loan so it can result in obviously more interest paid in the longer payback. But in terms of prequalifying that will not be a part of the equation and it was in their interest to do this not only to be helpful in a very desperate situation for so many Americans in the midst of the pandemic, but also you remember if they would've foreclosed on it, they would've lost a lot of money in the cost of that, plus the you know the sale of the property at a discount and so the fact that they could keep this mortgage, you have your exercise in good faith here saying I want to be an on-time payer as soon as I have income to do it I will and sounds like you're about to resume that.

So this works out in everybody's favor despite some very difficult circumstances.

So I would just go in contact and let them know if you haven't already, that you are working again. You want to resume payments and whether you just go back to your scheduled monthly payment of this can be some change in the monthly payment but I suspect it will be the same one, especially when they know it's gonna be a stretch for you to do and although you've made provisions to do so, and then the amount that's owed will be added to the backend Henry were glad that you found work again.

We hope it's a job that you find a satisfying and it meets all of your financial requirements as well. We wish you the best. Thanks so much, vessel, Minnesota hi Josh, what you situation my call whole life and current policy question. Yet talk.

The last couple years and all life insurance policies tend to agree. Now, however, about 13 years ago when I got gynecology with my wife and I got hundred thousand dollars whole life policy and $4000 term policy and not worry on 1213 years, then do it try to figure out.

We keep going.

Each one of our policies got about a 12, $13,000 cash value.

I talked to one financial advisor and eat that law whole life. Take that money and invest it roughly 8% over the next 2030 years, but I had been the current 1/2% are getting right now, what are you… I would concur the biggest thing here Josh is to make sure first of all that you have the right amount of coverage to protect you and your family on both your life and your wife's and as a rule of thumb, we would suggest as a starting point would be 10 to 12 times your income that if you have no major expense coming like a college education for a child. You might want to add to it. You know, being able to pay off certain amounts of debt you want to just make sure that you have the right amount of coverage so that your family members are protected in the meant inventive your death that she would be able to replace your income and provide for the family and the same would be true if she's bringing income into the home or if there be added expense as a result of her death, and most often that's gonna be a beautiful time childcare something like that. End of the most cost-effective way to do that provide the right amount of coverage is term because it's pure insurance, but separate from that is this whole life policy with a cash value been paying on it a long time and I think I would rather see you take that money out invested in a well diversified portfolio for the long haul and then perhaps recoup the amount.

Assuming you're still paying premiums and is not being paid out of the cash value redirect that premium to perhaps larger term policy. If in fact you need coverage beyond what you have today so I like the plan I would concur with the advisor that you were speaking to, and I would proceed accordingly Josh, thank you very much. I'm sorry, Justin Mead interrupted the goer that no man thank you very much for your… Appreciate it. Absolutely. Just think circles are. Thanks buddy appreciate to Indianapolis hi Jill, I have a housing question for we are selling our house right now and we met with like about $8000 down on that happened about eight and start our new me and how right away where we probably would only have about that down or rent or should we wait until we have more equity felt that cell later. What is this debt that you be paying off. It sounds like you have what about $50,000 in debt, you be paying off. Maybe a little less, about 35,000 you other marketing home equity now are 1800 okay and tell me about your spending plan. Are you able to meet all of those monthly minimum payments on all the debt you just mentioned and still have something left over at the end of the month like it's mine okay and tell me about this home. Do you feel like it's too much home for you. Do you feel like that either. The size is more than you need or the payment itself is too much since placing a burden on you on a monthly basis to take a break when I want to finish talking more money wisely. 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 and 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 live to work. Hi.

I'm very glad I'm here to help you understand how urgent it is a sugar for every opportunity to the eyes of a layman.

These are interesting times we live in the global pandemic racial tension lighting murders division lies abounding nationwide who knows what's truly born so many politicians reporter endorsing those who promote evil and shifting blame to the righteous who stand for truth. Those of us who serve the Lord live in truth we have God's word to guide us in the truth in November 3. Every Christian has a responsibility to exercise it when they vote, not by being political parson using the truth of the Bible as your voters exes 1821 says select from all the people some people honest men who fear God and hate bribes appoint them as leaders. Your responsibility to select the right leaders by voting for honest people who fear God and hate bribes to govern the nation. There is nothing more exciting than knowing God is using you to move people closer to join is not America.com, the notion of right and wrong. Well it's not too popular these days. I saw a bumper sticker recently that said, there are no rules on Benny Donovan. But imagine a society without rules, without consequences.

We have to look very far in this world to see.

We can be when we think there are no consequences. People sometimes look at God and think old man stick a bunch of rules that none of us can live up to God created a fantastic world. He breathed life into us. He kind us a free will.

The choice to choose him rejecting that slow but at the end of the day. The consequences justice goes hand-in-hand with love, such as forgiveness. That's why he sent his son Jesus to pay the price and find it, and whoever believes in him will receive eternal life. One day we will stand before him, and will not die. The choice we make today will have consequence of financial wealth you leave behind could be the best thing that ever happened to your love, what's 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 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 was she and Rob were discussing some housing choices and decisions. Jill, I appreciate that. Just to recap for the benefit of our listeners hear you on this home got about 50 or 60,000 in equity and you're looking at because of the strength of at least one hearing is because of the strength of the housing market and some appreciation you're looking at this as an opportunity, perhaps sell the house, pull the 50 or 60 out in equity to pay off primarily a student loan but that also some credit cards and some other debts you'd pay it all off you have perhaps you know some around eight or 9000 left when it's done. Here's the thing could take this with a grain of salt, but I'm good brought another alternative here and let me just give a caveat to this that I don't want to get in the way of what the Lord is doing if you and your husband prayed about this and really feel like you need to sell this home.

Then I would say absolutely proceed.

But here's what I want you to consider that you note number one, you just put up a lot of money into the basement and finishing it out, you're not going to get that back in full.

You get some of the back at old help you to sell it at a higher price than if you hadn't done it, but you're probably not can get the full amount of what you put into it. Number two. It sounds like at least you said this house really is a good fit for you all. In terms of the size it fits well within your budget and you have margin on a monthly basis that you been using to chip away at these debts over and above the minimum payments number three is any debt that you have other than the student loan. I realize why you would get into that, but any debt you have.

That's a result of perhaps overspending.

I kinda like the idea of some hard work going into paying it back like filing back your lifestyle and making some sacrifices in deciding you know it were not can it eat out one night a week that we would have otherwise because were to take that money and really focus on, or spending plans. We get more money going to the credit cards and then you get that sense of satisfaction what you paid it off that we've done some hard work here and and it's gone and look at that and by the way, we still have our home so you're just because the housing market is strong. I'm hesitant for you to sell take all this money that you had in the home and and pay off the debt and then you're renting rent prices are a bit high right now because the housing market is so high and I don't like the idea of you getting into a home of less than 20% down because of the housing market goes the other way. Now the sudden you're upside down. So I think my preference again, apart from the Lord really providing some clear direction here that's counter to this advice. My inclination as you keep the house you're really focus in on that spending plan you and your husband set a goal to attack that credit card debt.

Once that's gone, you move on to the next thing and you keep this house and you once the debts paid off. Look at perhaps even accelerating the mortgage payoff over time but but tell me your thoughts on that we keep we have been praying about and keep going and irate looking at everything I'm saying now. I feel it tired of paying on that loan that that it's really going yeah and I totally get that. I guy guess the thing if you were calling me sing Rob.

We made a mistake. We bought too much house and this is really putting a strain on her finances in her marriage and got all this debt.

If we could sell it we could buy something smaller. Get up, but that's not what I'm hearing, and although you have a nice basement that you just finish which probably cost a good bit of money that I don't hear you saying this is way more than we need. Or it's creating some strain. In fact, you've got money that you're using to accelerate your debt payoff. So I think that would be the direction I would at least think about talk about with your husband. You guys prayed through and was Lord give you some wisdom. We will indeed Jill, thank you very much Shanda just know how things work out okay will pray with you about this Chicago, Illinois Daniel, how can we help Sir so much her in my call so when my wife and I got married four years ago when I heard and open a 529 plan with me at the beneficiary and we were putting in just $25 a month. I the time I picked an out-of-state 529 plan with the state of Iowa. The simple fact that the Iowa plan offered low-cost Vanguard funds and it was my understanding that the Illinois plan had a bit more expensive funds annually as of today, 529 plan with Phila has a few thousand dollars and it will fast-forward to the Lord blessed us with the little one were not planning on changing the beneficiary to our son and increasing the contributions to 100 a month.

We keep the 529.8 of Iowa earthquakes Illinois creek pack now that our contributions are a bit larger yeah well incidentally something to consider.

And I don't have the answer right off, but I can tell you where to go to get it because you're right Daniel, there is often a greater benefit of the in-state plan.

If your state has state income tax which yours does quite a bit of state income tax in the form of a deduction versus what you might get in the form of the benefit of either lower fees or better performance inside of a 529 in another state in the waited to evaluate. That is a website called saving for college.com if you haven't seen it get the best calculator out there where you put in your state, the age of your child how much you gonna put in all kinds of information. It will run an analysis to look at the benefit of you using the in-state plan there in Illinois versus all of the other plans around the country that allow out-of-state participation, which most do and look at historical performance fees, and then come back to you and say here's what we recommend.

So I would go that route in terms of how you evaluate the weather not to stay put, or open a plan somewhere else. To some extent. Thanks, okay procedure called a publishing and Stan's Scottsboro, Alabama hi Gary, just a little bit of time what so what your situation last and 35 years in 401(k)s and I rose and we have about a million hat Mayor and I've had a couple of investment advisors trying to sell me on moving away from portfolio funds into. I'm sorry into mutual funds into having my own portfolio and I'm wondering if that's actually good advice. Yes, so they're saying that they'd rather you not invest in mutual funds and instead they want to portfolio reps that they would assemble themselves of stocks as opposed to funds is that right one. Just general stock from the other preferred stocks yeah I see okay well first of all Gary sounds like you've over a lifetime done some hard work to limit your lifestyle and be a consistent saver and you now are seeing the benefit of that we talk about it all the time. Here the power of compounding and being an investor in your future regularly and in your enjoying the fruit of that's okay congratulations. I think you know there's nothing wrong with mutual funds. Some investment advisor. Some investment professionals will use individual equity stocks to build portfolios. I think there's a case to be made for preferreds in your stage of life are you looking for a little bit more income, perhaps with a little more stability in the underlying stock, preferred stocks are often an underutilized tool in your toolbelt but there's nothing wrong with mutual funds. Whether it's a passive strategy with an indexed approach or an active manager who has a unique skill set her expertise. I got to mutual funds and in my investment accounts in and love them inside specially if you find some really good ones that just have a unique expertise in a certain sector or something like that. I think the big question for you Gary, first of all is do you want to manage his money yourself. You feel like you have the time and the expertise to build the portfolio whether it's funds or individual equities are preferreds or do you want to hire an investment professional to do that for you. Obviously with you closely involved in that. But somebody else where you're delegating that decision to a professional and his or her investment strategy, which by the way, plenty of investment advisors use mutual funds themselves but answer that question for me. First you prove feel better do it yourself.

Are you wanting to hire somebody feel like a traitor. I known people who research the stocks and I don't know that I have expertise in doing that, I'm not. I'm an engineer I'm not a finance person yeah yeah well and I would concur actually you spend your whole life amassing some wealth and this is not a time to perhaps come to go it alone.

If this is not your particular banter expertise in the same way you'd hire a professional to do all kinds of things. Whether it's a medical procedure or selling a piece of real estate. I think the same is true here, but again there's nothing wrong with mutual funds is nothing wrong with individual stocks is nothing wrong with preferreds. I think it's really finding the advisor that you have the right match with the right temperament to communicate with you. The frequency and the method that you want. Has the track record in the experience and really can help you manage this money in such a way that reflects what God is doing in your life. That's not a matter of beating the market. It's a matter of getting the return that you need to fund your lifestyle.

I would taking as little risk as possible and that might be done very well through preferreds, but another advisor might use mutual funds. So what I would recommend you do there and and Scottsboro Gary is if you don't arty have somebody I'd go to our website moneywise live.org. Click on find a CK visit with a couple certified kingdom advisors, perhaps as many as three in that area get a feel for who they are, how they operate and how they manage money and I think you'll find clearly some varied approaches and then pick the one that's the best fit for you, but I would concur having somebody walk alongside you and perhaps even make these decisions for you as a fiduciary would be the way that I would encourage you to go as a fiduciary. What what's that mean where there gonna put your interest above their own and they're going to manage the money based on your needs, not what's going to generate the most commission the most compensation to them or anything else in these days. If one goes in and says 50-50 and middle-age. I don't want to lose too much.

I don't have to make a lot. What kind of a return would one expect to get from someone who's helping you from Ground Zero these days. Well it did just totally depends on your age and your objectives are somebody like Gary has worked his whole life is now try to generate an income assuming he needs to generate an income off of this, they might target 4% year to be able to supplement his income if he says no I'm all I need a Social Security and a pension. This money can continue to grow they may take a little bit more risk or less. Because the money is not needed. All depends on what your goals and objectives from West, always a pleasure. It's been a great week. Hope you and yours have a wonderful weekend moneywise live is a partnership between the radio and moneywise media for Rob last time Steve or thanks for listening