The Secured Credit Card—Fantastic Plastic?

If your credit sketch or maybe you just don't trust yourself to the credit card and all of its temptations. Here is a great alternative just for you and it's called a secured credit card secured card might be just to stay out of debt and to improve your credit score along the way financial planner and teacher Rob West has the lowdown for you and miniature call 800-525-7000 800-525-7000.

Go ahead and call now by Rich Roslin for Steve Morgan today is a secure credit card fantastic plastic well will talk about it next him moneywise live or Rob. It is great to be back with you again today. I'm usually sitting in the producer's chair but do get to fill in occasionally Steve just keeps it in frequent enough so that I don't get comfortable in his chair worry Steve well I'm glad you're here.

It well thank you very much you know we did get a lot of calls about this this topic of secured cards and and best types of cards do you think folks are usually asking about prepaid cards but again we are talking about secured credit cards today, but there are some similarities between the two right well that's right. And people often confuse the two, because they work the same way to a point, but in either case there both just another way to pay for something, instead of using a regular credit card you can use either a prepaid or secured card to make purchases online or in stores just about anywhere actually use the same payment networks and look like a typical MasterCard or Visa, American Express, or Discover.

And with both, you have to load money into them first.

But that's where the similarities end nerd while at a popular finance website describes like this a secured card is buy now pay later and the prepaid card is pain now but later that probably confused a lot of people, me included, what you mean by that. Well, here's what it means that with a secured credit card you're required to put down a cash security deposit. Let's say from $200-$500 that becomes your spending limit your allowed to carry a balance on the account up to that amount about the credit card issuer isn't using your deposit money to pay for things you buy with a secured card. The bank is actually extending your credit up to the amount of your security deposit. That's why it's buy now pay later.

Now the end of the month you get a bill or statement for everything you purchased and you have to let make at least a minimum payment of course, it's always best to pay the whole thing off so you don't get hit with an interest okay, but that's not the case with a prepaid credit card right. I know it is in with the prepaid card. You still have to deposit cash, but when you buy something the issuer pays for with your money. Of course you're limited to the amount you've Artie loaded onto the card but that's why it's pay now by later I'm getting it now. This is actually a little bit like a debit card and if the money is not on the card and it doesn't work so which one of these is better than the other. In your opinion, While in my view, the secured version has the edge, stretch, at least for most folks who call into the program. Ask skews me asking about this, you see a secured card can help you improve your credit score because the issuer is in fact extending credit to you. That's not the case though with the prepaid version so it has no impact on your credit score.

Okay, so how should you use a secured card and if you want to do the best at improving your credit score yeah you would want to make at least one purchase a month. I would recommend a budgeted item. Of course, and then pay for right away when you get your statement at the end of the month when you do that it will slowly establish your payment history and build your score. That's why they're great for young people just starting out now. As long as you make the minimum payment you're allowed to carry a balance of up to the amount of your to security deposit, but you don't want to do that had paid off in full each month because that will help. Another factor making up your score which is credit utilization and you won't get hit with those interest charges okay will is there. This is already a lot keep up with, but is there anything else that we need to know are there other ways to make the most of the secured card. Well, two things yet Rich to keep in mind. First, make sure the card is one where the issuer report your transactions to the credit bureaus ask about that ahead of time. That's probably one of the reasons you're doing this in the first place.

Second, never attempt to spend more than your security deposit of the transaction won't go through and it could negatively affect your credit score okay will now that helps me see how a secured card can help you stay out of debt then is that that fixed limit. If you will will that's right now because you can always spend up to the amount of your security deposit, but it still gives you the most convenience of a regular credit card okay any downsides. Well you might have trouble renting a car. Or perhaps I was a secured card is less your security deposit is high enough and of course you have to keep the money on deposit. Therefore, you don't have use of it. While the account is open. That's a small price to pay for right there you have it. All you need to know about back in a moment. Here's a great deal more about our money than most of us imagine Jesus is more about our use of money and possessions and about anything else, including both heaven and hell and managing God's money on the radio and breaks it all down in a simple, easy to follow format that makes it the perfect reference tool if you're interested in gaining a solid biblical understanding of money, possessions and eternity managing God's money is available when you click the store moneywise live.org for 30 years. Sound mind investing has been helping Christians reach their financial goals. Step-by-step guidance for investors at every stage from those just getting started, those getting ready for retirement through scriptural principles and practical suggestions. SMI offers financial wisdom. More information in a short deal webinar on profit and peace of mind, no matter what's happening in the market is available at sound mind investing.rode a bike. Sears has a collection of strange names. Everyone says is a real name came across on names like Rock Island, Sherry and Billy, perhaps the downside of my knowledge and electronic communication is a loss of personal identity in some places, they are better known by a member is how someone in a world of over 7 billion people around so whoever believes in him should not perish when I created you would like to know Jesus Christ, please, if that is writing you a Freedom and peace of mind. Christian credit counselors can help where a nationwide nonprofit counseling organization has helped over 3000 individuals in the last 27 years get out of credit card debt percent faster while doing that, that info to learn how Christian credit counselors can help you visit Christian credit counselors.org Christian credit counselors.or call 800-557-1985 moneywise live by God's plan.

Your financial life Rob Westheimer Trostle sitting in for Steve Moore and you know I often think when I'm sitting in the producer's chair that Steve does little more than drink coffee and eat bagels while he is doing the program but he remembers things like giving the phone number out which I forgot to do. Let me do it now. 1-800-525-7000 again.

800-525-7000 or you can email us at questions@moneywise.org and I were to jump right to the phones now will go to Crawfordsville, Indiana, Lehigh, your first on moneywise like today. How can we help by looking at retirement three with all the information you see on TV and that's about Medicare supplements and so on. I was just wondering how do you know which is the best way to go. What's right sheet of paper supplements I get free supplements or have had ego yeah yeah it's good questions, Lee and I think everybody should have the Medicare advantage plan.

Basically it's an all-in-one solution. If you think about it where it's offers they be part of the plan, you know which part is the hospital insurance B would be the medical insurance and the advantage plan or the supplementals is called the part C but it usually bundles in in addition to ANB the drug coverage which is for another letter. The part C coverage so it covers everything that original Medicare covers, but also things it doesn't cover like vision, hearing, dental, even some discounts or your fitness programs, things like that so I thank you want to check it out for sure in some cases there is not even an extra cost to the original Medicare and keep in mind these are private companies, but Medicare is paying them for these plans and then they add on top of that there will be, in some cases, though some out of pocket costs.

If you need a referral depending on if you need a referral to a specialist or if you have to go to a doctor, facility or supplier that belong to the plan for nonemergency or nonurgent care that the rules of course can change year to year, but the bottom line is having the most coverage in this all-in-one solution is the place to go and if you just go to Medicare.gov. That would be a great starting point is a lot of really helpful information about how to get started with it. You get a and B. What are the different types of advantage plans. What about the medical savings account.

You get all of that information there and I think once you read through that which course.

That's the official US government website for Medicare. You have a much better understanding of what you're looking at and then you can begin shopping it on the open market so hopefully that's a helpful primer for you and again Medicare.gov is the site to go to his alphabet soup is not Rob with just a bit. It sure is all right thank you very much we appreciate the call on to Fort Lauderdale Florida real of welcome to moneywise live I believe you are the first River we've had. How can we help will quick question. I am 59 years old my current go to Fort Lauderdale about two years ago drinking like when newly married, so he had a home and bubble burst and think I Have that I is rental property paying 19 amount paid about $45,000 year to find another leak likely to grow up and ate a contact risk score that at mortgage wondering what you think we should do yeah well I think the bottom line is we gotta start with God's plan for the two of you. What is the vision that you have for where God is taking you and how can money as a tool be used to accomplish those purposes. Keep in mind that all belongs to the Lord. The earth is the Lord's, and everything therein, including the cattle on a thousand hills right so that puts us in a position of steward or manager. So we see money as a tool and we realize that we want to align the use of that resource with our values and our priorities. Perhaps the goals that we believe the Lord has for us. It gives us a little more clarity about how we should use that moving forward we want to be wise in our stewardship of that and I can certainly appreciate his concern about taking on a major debt in this season of life. Although it 59 years old I would say you still love the Lord Terry's and your health is good and have plenty of time to be of service to the Lord and you know if you have, for instance, got a 20 year mortgage and it was paid off because you accelerated or even if you paid the minimum payment by the time you over 79 you keep in mind when you reach age 65.

The life expectancy is 83 and beyond for men and women so you know, I would say obviously you're in a part of the world where housing prices have appreciated significantly and you're not selling one to benefit from those high real estate prices that you can roll into another. And yet, if your finances support and I would allow that to be the second driver beyond your prayerful consideration of what God has for you all.

In this next season of life.

If the finances can support it. Meaning you have the 20% down payment that's going to keep you out of trouble if we had another downturn in the housing market and if you don't, what would it take to get there in you know that may be one of the showstoppers because with the prices of homes in South Florida and what you all would be looking to buy. Obviously that's no small amount of money, even a $200,000 home or talking $40,000 $300,000 home in a $60,000 and then I think the second issue is with that mortgage and again depending upon the term. If you want to keep it on the shorter end. Given your age, you could certainly do a 20 year if you wanted to go out to a 30 year, you certainly could.

There wouldn't be any problem with the mortgage company extending that to you if you had the income of the assets, then the question is does the principal, interest, taxes and insurance payment fit into the guideline we use there which is no more than 25% of your take-home pay and I think by giving your prayerful consideration and then looking at some of these principles on the financial side in terms of the down payment and the pay be the resulting mortgage payment monthly and and how that fits into your budget, you'll gain some clarity as to whether or not this makes sense. I would certainly concur with you, I'd rather you be an owner in terms of building equity in something that's a real asset that could be sold down the road, but at the same time. I wouldn't want you to do that prematurely by trying to get 100% financing or having a mortgage payment that you, your budget can afford and then put you all in a real tough financial position especially newly married. It could have a lot of stress and strain to the marriage. So I think those are perhaps the things to think through as you make this next step is that makes some sensitive I can both thinking continue to work until about seven or 70 him to go in that direction. So I think you'd look at it like this that it's an asset. Right yes at your home and so we look at it slightly differently because a true investment is something that sold when it accomplishes its purpose, but you have a dual purpose here and that is this is where your living, but at the same time because you will have the financial wherewithal to buy and perhaps even for cash or having a very small mortgage then I like the idea even there in South Florida in this season of life of you guys building some equity having this asset to be sold down the road as opposed to just putting all of your money and rent Rob Reeves question brings up an issue that often comes up and that is the fact that the money can be something that tingles up the marriage relationship quite a bit when husband and wife may disagree about something and I'm reminded that this month. As a matter of fact, if you go to our website moneywise live.org, you'll see a special offer that we got. It's a book called thriving in love and money.

It's written by Chante and Jeff felt on, they refer to it we refer to it as a non-money money book. It helps you uncover the issues that cause many conflicts and learn truths about the well everything you need to know that can be relationship builders rather than relationship destroyers in the money conversation and I would like to make that book available to you as our gift with your gift of $25 more moneywise live.org to donate half and request your free copy.

Appreciate the call live Rob Moore calls at 800-525-7000 moneywise live buying a home is the largest most nerve-racking perches.

Most of us ever make. It doesn't help that you're entering a maze of unfamiliar words and confusing options that can lead 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 moneywise live.org, click insert everything here is people like you point to where opposites attract working for me to send you just originally thought. His most bizarre person I've ever met. You could say in Christ come to a place you almost cannot stand to suggest to you the opportunity to let people time letting stranger on the other side of the world.

People Democrats and Republicans are a lot alike in a lot of people now listen online. Most couples can't talk about most money books expected. But how can you create a budget or pay down debt. If you can even talk about spending or saving. If you get tense about your just plain avoid many conversations altogether thriving in love and money by Chante and Jeff felt hot news 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 budget hello hello and thank you for joining us today moneywise live under a trust for Steve Moore today and Rob West. Our host with the most anybody take your calls at 800-525-7000 and Rob a few minutes ago we were talking to her caller about Medicare supplements and got Jeff on the line now from Indianapolis, Indiana and Jeff have some personal experience in eldercare and wanted to offer some additional perspective so Jeff welcomed moneywise live in Phyllis and where. Where might we have gone wrong while filling human perspective and whenever you consider insurance about Medicare not a lot of out-of-pocket aspect of the concern about.

There's also a services agreement perspective.

Also, I think, what's the cost of that one of my giving up potentially and click on the time the psychologist working in hospitals as 20 years, and one the things that I'm seen time and time again is when people select overcome all Medicare Medicare plans" people are getting on top of the rehab services in the nursing home literally today.

Medicare I see some of them kicked off by data plans and then get back to Medicare back in also working the rehab hospital and I see a lot of staff and Dr. Stan all the time patients are spending a lot of time trying to wrap from the manage Medicare plans and basically trying to allow the hospital. We have acute care hospitals and whether they go home, whether they go to the nursing home late and they need when traditional Medicare hospital given a certain amount of work those days to completion. The other plan there constantly trying to stay and unless there on the phone daily hospital and outback either home or the nursing home and just see that there's so much monetary side of Medicare and Medi-Cal. The reason that they're paying Medicare money. People need to be aware that even though there might saving $80 deductible that they may have to pay for Medicare. They might be losing thousands of dollars. Yeah, this is the treatment cited some that definitely needs to be considered. So I appreciate you offering that perspective.

I think this kind of the other piece of it, though, is that perhaps the supplement insurance plans may pay for deductibles and even coinsurance or other out-of-pocket costs that aren't covered by original Medicare. And so you gotta cut away all of these as you looking at what care is needed. Now what might be needed in the future. Certainly don't want to be left without critical care or be encouraged to shorten estate or a treatment plan because insurance companies pushing you to do that, and yet you also don't want to have gaps in your coverage, which traditional Medicare involves many of the gaps are substantial.

You can have expensive deductibles and references, outpatient coverage, you could have as much is 20%. The check to cover yourself, which is where Medigap plan that kickstand so I appreciate you calling Jeff and offering that other perspective. You certainly been on the ground.

You've seen it and so we appreciate your weighing in today. Another consideration for somebody looking into these issues. Jeff, thanks very much for your call.

I do appreciate it and Rob, this is something we often talk to people about even staying off of what we would call traditional insurance and going with a program like Christian healthcare ministries. For example, or or some of the others that the problem with that though is it that doesn't carry on at the time when one would normally be going on to Medicare.

So you're really looking at a whole new animal. By the time you turn 65 March yeah that's right and there's a learning curve. There than just like her previous caller in the last segment who's just trying to get his hands around all of this and so you gotta do quite a bit of learning and education for yourself so you understand what my giving up one of my getting and their great aspects to it where everything. If you have the right policies can just be covered, but you've got understand some of those loopholes as well, and clearly our system has a few spilt and rich tribal. We may have to do some programs in the future where we go through more these details in and see what we can do to unpack it ourselves because unfortunately some of us are getting closer to that age than others and maybe it may be soon. Let me give our phone number one more time.

We we are going to be taking some more calls in the next segment but go ahead and call and now 1-800-525-7000 800-525-7000. Also, emails are always welcome and I have regret that we don't get to those as frequently as we might, but questions@moneywise.org course you can also join us on Facebook Facebook question of the day you can join in the conversation before the Facebook community Facebook for moneywise media this is moneywise live on retro with more calls just 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 that eventide design investments for performance and a better world. You can invest with the confidence to reach your financial goals while remaining true to your Christian values and commitments. We call this investing makes the world rejoice more is available eventide.com invest eventide.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 Ryan Anderson children and family ministry major at the Moody Bible Institute radio verse of the week is found in second Corinthians, 4739. We have this treasure in jars of clay to show that this all surpassing power is from God and not from us. We are hard-pressed on every side, not Christ. Perplexed, but not in despair persecuted, but not down but not for seven through nine radio verse of the week. If you're about to throw in the towel on homeschooling.

It's time to leave the second-guessing behind in quiet voices of courageously killed three homeschooling by reading home this book Jamie Erickson teaches you see homeschooling calling attention to common bumps in the road bravely to homeschool greatly if available now publishes.com many people are experiencing financial challenges such as credit card debt downsizing that in jobs, savings, more than half of all the courses are the result of financial pressures at home in your money counts biblical financial expert Howard shows that the Bible is a veritable managing your finances will discover the profound relationship God, your money counts is available when you click the start button moneywise live Supreme Court nominee Amy Cody Barrett says an article she wrote sizing Justice John Roberts 2012 opinion saving the affordable care act does not reflect any hostility toward the law. Barrett was answering questions from Democratic Sen. Chris Coons of Delaware who brought up the article she wrote in 2017, before she became a judge. Day two of the Supreme Court hearings are continuing Senate majority leader Mitch McConnell says that he scheduling a procedural boat on it you will be covered. 19 relief bill for next week. He says aid to hard-hit businesses shouldn't be held up by gridlock involving other eight proposals said it will take a test boat on October 19 stock sending Laura's Wall Street takes a pause after a four-day winning string downgrade up 157 points, but NASDAQ was down a dozen. This is SRN use God's word. Listening to moneywise live on the radio like to have you along with this Steve Moore is out today. Should be back tomorrow Amber Trostle sitting in his chair and keeping it warm while our host Rob West is all of the heavy lifting, lifting, and Robert and head back to the phones.

Now Carol is calling us from Cleveland, Ohio and Carol, I understand you have a question about moving money from a traditional IRA into a Roth. So what's going on with you when I met a lot of time with Larry Burket information under my belt, traditional IRA into a rock. Just this week, and it went blank. There's a lot of questions I have about double our income taxes because the taxes are so low right now we understand that in moving that changes the climate up Roth of the Roth IRA traditional and my question was to read the places where I read that you have to hold that money for five years with the rock that was just a company as you work that with a federal issue question anything you could fill me in on yeah I think the key there. Carol you Artie alluded to it is obviously the amount that was converted is can be added to your taxable income. It sounds like you're prepared for that. You obviously wouldn't want to take the withdrawal to cover that because that would be taxable as well. If you hundred 59 1/2 it would feel at a 10% penalty to it. There is this five-year rule and this is an IRS rule. It's not a company specific rule essentially the just says yo. Each conversion has a five-year period where you can't take out any of the gains you can take out the original contribution. The time but any gains you can't take out for five years and every conversion has its own new five-year rule and there's some stipulations as to how these various conversions are ordered and so forth. But the bottom line is you want to leave this in there for five years, let it continue to grow so that you don't withdraw these converted assets, but I think that you have the bottom line is that once you paid the tax that all the gains that you have on this now and into the future and hopefully if you don't have to touch and let it continue to grow. You get the benefit from the tax-free growth where when you pull it out that the appropriate time. You are not adding that to your taxable income and you don't have the required minimum distribution with a Roth.

So theoretically, this money could continue to grow. If you don't need that you have other income sources so you can pass it on to errors or use it for additional giving down the road. Whatever it might be but you are correct that there will be that five-year rule on the amount that was converted and you'll need to abide by the Carol had a quick question right when you first started asking this question, you said something about your converting it from a traditional to a Roth and that's going to double your income. Explain what what have you done here. Did you find a miracle investment or how was I going to double your income will outweigh don't make money when we probably have about 50,000 yearly rollover will be about another 50,000 Increase our income that I know the taxes are way lower my our tax lady said that would not be a problem but yeah we rolled over in amount and have 500,000 or anything, but I got my wonder what I thank you for the misunderstanding to I thought you were talking about doubling the income off of the investment you are saying that this would double your taxable income for this year in which he rolled over so that makes a lot more sense. I was going to contact you on the side and see if you could give me a quick tip on investing, but it will pass with Carol, thanks so much for your call. We really appreciate it on to Nashville, Tennessee Michael Euronext on moneywise live.

How can we help I really appreciate you question about credit union and checking account and they are offering about $45,000 in liquid cash and they put in will they have a graduated system, but one of the steps says that if I put 25,000 make 20% annual percentage yield dividends paid on a monthly basis and I was wondering if you thought that was a good way to go. Thoughts and insight. Yeah, I'm not sure I followed you there.

So tell me what it is they're promising to be graduated department.

So if you deposit anywhere from $5000-$10,000. You start out at 10% annual percentage yield in the next step is 10 to 20 25,000 which stated 10% and then they have you deposit 25,000 50,000 it bumps up to 20%, and so on. Yeah a little confused by that. I can imagine that they would give you 10% interest rate on the deposit or even as much is 20% for 50,000 somethings not quite right there. Am I missing something or is that your understanding of what they're actually offering my understanding I'm looking at the website right now and say yeah I'll certainly check it out if you'll send a link to that the questions and moneywise.org will take a peek, but something's not right there. Michael nobody's offering no money markets or even a bonus which they do to attract business from time to time, they'll throw in a kind of a bonus, even above prevailing rates. Even some of the online rates but that might be one or 2% at the most, never 10 or 20%. So something something is awry.

But let's take a look@itsarequestionsofmoneywise.org and will take a peek and we appreciate your cold. Thank you Michael appreciate that and I think we can squeeze in one more real quick before the break Philip from Greenwood Indiana just a couple minutes or how can we help you as a lender, mortgage lender.

I'm curious as to why you always talk about having to say 20% down for a purchase of a home which implies you have something against FHA or private mortgage insurance, curious as to why you can buy a house with five or 10% down with 8 to 10% appreciation week seem the last several years you're going to be able to get rid of it and still own a home, you know that's true, Philip. I think a couple of things there.

Number one is just because somebody will give you mortgage the necessary mean it's the right mortgage bill week we saw 0% financing which led in part to the you know 0809 debacle where housing prices had rapid declines and with a lot of people, underwater there so I think there's a couple of things that happen with the 20% down. Certainly, it's not required. There are plenty of mortgage programs that would allow you to do a lot less than that. One of the benefits is that it really forces you to have a solid financial foundation under you, because you have the ability to save to make a purchase number to keep that payment lower because were not financing as much, and so it gives folks a better position to fitted into their budget. We use a typical guideline. There are 25% of take-home pay for PI, TI, principal, interest, taxes and insurance. It's going to get rid of that PMI which does nothing for you because it's only for the benefit of the lender.

So is just an added expense that you're paying that's of no value, and so we get rid of that and it's going to perhaps earn you lower mortgage interest rate because lenders are going to give a more competitive rate.

If you have that 20% down. In most cases, certainly not everyone, and they'll be more likely to compete for your business. Just because there's that extra equity which gives them added safety so I just like it for those reasons doesn't mean it's absolutely essential, but I will talk more off-line will be right back. 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 counseling by Howard Tate 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 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. November 3 is right around the quarter.

Are you ready one of the most important ways you can serve God is to post if you want things get worse than they already are, then not voting is the same thing as voting for those who hate God.

Psalm 125 verse three says the wicked will not rule in the godly for them. The godly might be to do wrong is important that you take responsibility on your God-given freedom to both the selection order for this nation remain under God and free historic moment. This is because you love our God loving country. Please make sure that every Christian. You know, "on November 3. It's going to take every Christian voting for God and pushed back to start this are most important national election ever. There is nothing more exciting than knowing God is using you to move people closer to join is not America.com.

Do you remember that old man from the 1970s, the Clayton's. It's the drink you have when you not having a drink on Benny Donna claims is become part of language. Clayton's drink looks as though it's alcoholic, but really it isn't Clayton's anything is something that looks real reason? 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. 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 want. 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 Tate 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 and moneywise live.org 1-800-525-7000 lines of perhaps time for your call 805 five 7000, and moneywise live next to Griffith, Indiana Jim, welcome to the program. How can we be of service or I like all My Wife and I Are Both Tired. I Work and Then Were Also on. What 70 and We Have Money Are IRA and I Have 401(k) Homework and I Was Wondering If There Was Would Be Any Benefit for Us to Take That Money out Every Year and Just Converted over to a Roth IRA. We Don't See Us Needing Money for a Long Period of Time You Jim Would Be Certainly Could Be Some Benefit in Obviously One of the Big Ones Is That If You Do That Prior to Having to Take It out As Required Minimum Distribution. It Could Continue to Grow. If You Don't Intend to Take It out so That Could Be One of the Better Options That You Have. I Think the Downside Is Usually When Were Looking at Contributing to a Roth or Even Converting to a Roth. The Most Effective Opportunity for That Is Early on When You're Still in Your Working Years. You Have A Lot Of Time on Your Side, You're in a More Aggressive Investing Posture Because You You're Not Anywhere near Retirement and so You Have a Much Larger Stock Allocation and so the Potential for Gains Is A Lot Higher and You're in a Higher Tax Bracket Because Perhaps Your into Your Working Years, Maybe Even Some of the Peak Working Years Were You Have A Lot Of Taxable Income. And so When You're Looking at the Opportunity to Take This out in Retirement down the Deal. Perhaps I Know You're in Retirement Now but If You Were to Take It out down the Road You're in No a Low Tax Bracket at That Time so I I Don't Think There's a Tremendous Benefit There. Apart from This Idea That the Money Could Continue to Grow in This Tax-Free Growth Environment without You Having to Take It out Based on the IRS Schedule and so I'd Probably Pass on to the Fire You, but I Don't Think There's Anything Wrong with It.

Certainly Again, If You Plan to Leave It There. That Would Be One Benefit in the Favor of Making the Conversion.

Well My My My Guarantee My Life for My Life until She's over 80 and so the Money Would Not Have. We Have Saving Really an Investment. We Haven't Changed Any of Our Investment Strategy from before I Retired till Now.

I'm Still Okay Because You Don't Have a Need for Right Now, You've Had the Ability to Work to Have a More Aggressive Investment Posture and so It Certainly Be Something to Look at. Perhaps You Could Even Do Half over toward the Roth and Leave Half There with the Intention of Maybe Doing Some You're Getting Out Of the Traditional IRA through a Qualified Charitable Distribution to Maximize That Opportunity and Not Paying Any Taxes on the Amount That You're Giving so You Could Use That to Offset Giving You're Doing Out Of Cash after Tax and Do It on a Pretax Basis from the Traditional, and Perhaps That Portion That You Don't Ever Intend to Touch. Maybe You Systematically Convert That over Time, but I Work with Your Tax Preparer to Make Sure You're Not Inadvertently Pushing Yourself up into a Higher Tax Bracket, Just Figure out How Much to Do per Year, and I Have Thought That to Professional Help You Back into That Calculation. Rob I Don't Want to Linger on It Long but You Just Mentioned That the Charitable Contribution or Charitable Gift Country Contribution. Can You Explain That Rule Briefly Because That's I Think Something That A Lot Of People Overlook When They Got Some Investments of of a New Way to Give. Can You Explain That Briefly, Yeah, Absolutely. So There's Something Called a Qualified Charitable Distribution That Basically Allows You to Make a Charitable Contribution Directly from a Traditional IRA to a Charity Not-For-Profit Organization Which Could Also Be Your Church of up to $100,000 and It Will's Go against Her Required Minimum Distribution. There Is Not One This Year Because the Cares Act within a Typical Year, It Would Offset That in the Nice Thing Is That You're Not Realizing That Amount As a Distribution First and Therefore It's Not Taxable. So the Full Amount of the Transfer Goes to the Ministry Here Charity They Would Sell the Investment and Have Full Value of That Amount, and No One Would Ever Pay Any Tax on It, so a Benefit to You Because You're Perhaps Dialing Back and in Offsetting That the Amount of Giving You Would've Already Been Doing with After-Tax Dollars, and Then Just Transferring Directly from Your IRA That Is Fabulous. I Know My Mom and Her Last Few Years Did That and It It Actually Made All the Difference in Her Case of Her Finances Working Versus Not Working LOL Yeah Truly Good to Know Because You Know She Was a Regular Give Her a Tither Is Able to Change It over so That That Came Out Of Investments and Work for What Will Thank You. Let's See We Can Take Another Call Here 800-525-7000 Miami, Florida, and Jeanette. I Appreciate Your Holding. How Can We Be of Service. Today, Though I Home. Oh, I Doubt That. I Cannot Credit Card That I Paid My Credit Card Monthly High Income That I Got on the Train Bearing like All Right Right Now I Would like More Money Home, Going to Look for Another Job. I Know My Age Life. I Am Lucky Jeanette. As You Look at Your Finances. I Assume I'm so Sorry to Hear You've Been Laid off until You Find Additional Work. What Is the Gap between Your Monthly Expenses and the Social Security Income That You Have Coming in Okay and Are You Planning to Start Pulling That from the Hundred Thousand in Investments or Do You Have Other Places Okay Yeah Okay Very Good and You Obviously As We Look Forward You Know You Have To Consider the Assets That You Have and the Ability for You to Continue to Work As Long As You Can.

One Opportunity Would Be for You to Take This Home and Converted into an Income Stream That Would Be through a Reverse Mortgage. That's Not Typically My First Approach, Especially If It Doesn't Meet the Need in Terms of the Total Amount You Need to Bring in on a Monthly Basis and It Wouldn't with with the Need There Being around 3000 but I Also Also Recognize That You Know You Have If You Were to Sell This Even Though You Have the 400,000 and in Roughly the 500 That Goes with It and We Would Typically Look at a 4% Rate of Return Which on 1/2 Million Dollars Would Be about 20,000 a Year and so the 20,000 a Year That You Would Get before Tax Plus the 800 When You Factor in What You're Going to Have To Be Paying for Rent Is Probably Still Not Going to Cover It. And That Means That You're Going to Just Have To Eat into the Principal There.

So I Think That the Key Right Now Is to Trust the Lord Recognize Seizure Provider.

You've Been Faithful. It Sounds like to Be a Giver, and to Manage Your Money Wisely Am Delighted to Hear You Don't Have A Lot Of Debt and yet What We Need to Do Is to Find Work That's Going Allow You Not Only to Cover Your Expenses, but to Save As Much As You Can between Now and That Season Where, for Whatever Reason the Lord Redirects You or Your Unable to Work and That That Point to the Good News Is You've Got Half $1 Million in Assets and so at That Point We Have To Figure out That Plus What You're Able to Accumulate between Now and Then, Assuming You Find Work Relatively Soon. You How to Position That to Be Able to Provide the Income That You Need on Top of the Social Security Receiving at That Point, Look for You to Connect with One of Our Money Wise Coaches Jeanette Love to Help You, and There's No Charge for That. Perhaps Walk-Through the Numbers in a Little Bit More Detail Give You Some Thoughts Certainly Pray with You and See What We Can Uncover As to the Best Path Forward Rob I'm Curious about This Jeanette If She Sells Her House As You're Saying She's Looking about 500,000 and As You Said That Wouldn't Be Enough without Digging into Principal to Cover Rent but How Important Is It for Us to Maintain Principal over the Long Haul. I Mean 500,000 Bucks She Could Take 25,000 out a Year and in It Would Last 20 Years. It Didn't Turn in Time so Does She Really Need to Be Concerned or Is It Okay to Eat up the Principal Well You Know Certainly If You Have the Ability Rich to Keep Your Lifestyle at Such a Level Where You Don't Have To Eat into Principal Than That's Going to Ensure Especially with Inflation Where Your Purchasing Power Is Declining. That's Going to Ensure That You Can Allow This Money to Last the Rest of Your Life That the Lord Terry's and You Were to Live a Long, Long Time, but That's Just Not an Option for Many Folks Were They Have To Go Ahead and Eat into That Principle Because the Returns Are Just Simply Not Enough to Meet the Need That They Have for Their Expenses and That's Where Changes Have To Be Made to the Extent That They Can Homes Have To Be Sold and Decisions Have To Be Made As to How Do We Maximize and Stretch These Dollars out Just As Long As We Can Write. And of Course You Know We We Often Talk about Our Desire to Leave an Inheritance for Our Children.

That's Both a Financial Inheritance in a Spiritual Inheritance, but Sometimes You Can Only Do It Well.

Always You Can Only Do What You Can Do Gotta Remember God Is Certainly in Charge of All of This, Jeanette. Thanks so Much. We Hope This Information Is Help and Please to Get Back in Touch If We Can Be of Further Help to You.

Are We Are about Out Of Time Today but It's Been a Pleasure to Be with You and Steve Tells Me He's Coming Back Tomorrow Will Look Forward to a Great View on This Week Rich Would Appreciate You Sitting. Well Thank You Very Much. Our Thanks to Our Crack Technical Team Today Amy, Dan, Clara and Jim. A Reminder That Moneywise Live Is a Partnership between the Radio and Moneywise Me