Donor Advised Funds

Me.

Second Corinthians 97 reads each one must give as he has decided in his heart, not reluctantly or under compulsion, for God loves a cheerful giver. God's word is clear that Christians should be generous but it leaves room for how we should practice that generosity today host Rob West chats with Valerie Hogan of the National Christian foundation about a way to make your giving more efficient and effective. Then we can some calls from all across the country. However, today's edition of the program is not live. We are, I'm Steve Moore donor advised funds next right here on moneywise live yesterday. Valerie Hogan is an attorney, a certified financial planner and relationship manager at the National Christian foundation. But most of all, she has a passion for helping people overcome financial obstacles so they can give more generously was exactly right Stephen were anxious to learn more about just that Valerie delighted to have you back on the program.

It's great to be back.

Thank you, Rob and Steve absolutely now your mission is helping people be wise stewards of what God's entrusted them for giving a donor advised fund is a great way to do that we've talked about it before the program but it always amazes me how many people have never heard of a donor advised fund. So when we begin today with the definition what is I think it's good to think about these is charitable checking account. This is a fund where you can move funds and other things that will talk about later I'm into this fund thought of as a charitable checking account or we call it getting fund National Christian foundation and spun on the monies are now designated for charities and so you can get a receipt right away for that movement of funds and then you can distribute or grant out all those friends right away or you can take your time or do strategic giving at various times that those funds so it is a mechanism to hold the funds and other things for giving and for charitable purposes.

A really powerful tool again that may be a new concept for many folks out. Valerie, I assume that there some folks out there listening today saying well. This must be for those that have a lot more than I do. I don't have enough to get through donor advised fund to those who can benefit from what you all call as you said a giving fund administered through the National Christian foundation will many folks can benefit from having one of these donor advised funds or if you think of it as a charitable checking account for a lot of different reasons. If your tax accountant review been thinking yourself about punching donations. In other words you're having some kind of event this year or in any given year that would cause you to have a wise charitable deduction and that you hear about maybe want to give this year and next year out of it punching those donations that would be a reason. If you'd like to give anonymously me. Maybe you have. We deftly encourage I'm giving to charities and churches and interacting regularly with them. But let's say you have a charity that you just want to give a one time donation to but you really don't want to land on their mailing list giving anonymously is another thing you can do with a donor advised fund. Also, if you're gonna want to involve your family may be grandkids in the giving donor advised fund is a great way to hold the funds and then let them be involved in the research and the granting out of these monies. Very good.

This is really key to be able to give away.

That's wise and efficient as you said. Using this tool. Anybody else Valerie before first break here that you think should absolutely consider giving fund. Certainly, definitely, if you have all of the things I mentioned before, but then in addition your advisors, your financial planner at your account has been telling you that you might want to look into a donor advised fund are telling you stop writing checks and look about giving other things may be appreciated stock and maybe shares of the business. I may be commercial or residential real estate those times types of things that you definitely want to consider. Or maybe, if you have a foundation that has served an original purpose, but it's not serving other purposes.

We may want to look at a donor advised fund as well. Excellent what you alluded to the fact that so we can put many things into a giving fund not only cash but other assets will talk about that in a poorly more right around the corner as we continue to unpack what I think is often one of the most effective and underutilized giving tools out there.

The giving fund of the donor advised fund from listening to moneywise live is Rob West.

More with less. Today, that have Valerie Hogan with us from the national foundation will talk more about giving funds tax advantages year-end giving and much more. Stick around. 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 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 when it comes to investing guidance you want advice, grounded in God's word. That's the approach offered by sound mind investing. SMI has helped tens of thousands of Christians acquire investing wisdom and confidence. Regardless of your investing experience or how much you have to invest can learn to be a wise and faithful steward in the area of investing a short video webinar on profit and peace of mind is available now sound mind investing.org Mrs. Max McLean is God's love work in our lives. The Bible from post on four when lives in love lives and gone and got but perfect love drives out because you have to do with punishment. One fuse is not made perfect. We love because he first loved us. If anyone says, I love God hates his brother is alive seen cannot love God whom he has no and he's given us this, whoever loves God must also love his brother from first John four.

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Christian credit counselors can help Wear 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 that info to learn how Christian credit counselors can help you visit Christian credit counselors.org Christian credit counselors.or call 800-557-1985. Joining us today moneywise live Rob West is your host. I'm Steve Moore were chatting with Valerie Hogan about the National Christian foundation, often referred to was CF. They put together donor advised funds to help all of us do a better job a more thoughtful job when it comes to our giving to organizations that we really want to help in the long term will Valerie I love this idea of a charitable checking account of vehicle if you will to contribute cash and other assets will talk about that in a moment. For the purposes of giving making things a lot simpler a lot more streamlined. By the way one tax receipt at the end of the year. Now, folks may be thinking what this has to be a complicated process to set up and yet that's not the case. So give us a sense of how one goes about opening the giving fund certainly well.

One of things you can do is just go to our website so that would be NCF giving.com and you can look at opening what we call giving fund and that's the donor advised fund and you can do it right there online with just some basic information it's easy to open a find online or you can check in with one of the regional offices or our national office and they can work with you through that even on pen and paper.

We still do that occasionally as well. Once you open that fund you a lot of options you can start looking to grant out and one of the great benefits is that I National Christian foundation does help you research those places make sure they are legitimate 501(c)(3). They are in line with your values and then you can grant out to many places out of that one fund. So that's very convenient. You also have options to some other more complex things you can have that money in there and if you have some of it that you are looking to grant out later you can grow that money there some investment options for those funds and again it's growing those charitable donation sizes for when you're ready to grant them out so talk about the tax side of this Valerie in terms of when the deduction is acknowledged is when that goes in is it when it comes out in one of the benefits of the tax treatment.

Oh boy it's right away and so I folks love this. You get the one receipt right away so you can grant out to multiple charities out of this without one receipt right away.

And so you may be looking to grant out some now. Or maybe not at all.

Maybe you're looking to fund me be a building fund for your church and orphanage something like that.

So you can get the receipt and that tax deduction. Let's say in this year right when you do that, but then grant the monies out later so I your tax accountant should be no jumping up and down sharing for all the tax complexity and strategy, but one receipt and we don't get to see that too often doing Valerie you can open a donor advised fund and lots of different places that people may not necessarily be aware of that.

But what makes opening a fund with NCF somewhat different and this is something I love to talk about and why why I'm with them at National Christian foundation.

We have shared values with you and so for us it's more about the transformation, not just the transaction we have been given community and we are centered around the shared values, and I think one thing that just highlights a different right away is our vision and our mission. Our mission is mobilizing resources by inspiring biblical generosity. Vision is every person reached and restored through the love of Christ which are not hearing out and there is a goal of assets under management. So we have those things at the heart of what we do, we do tax strategy and all of those great transactional things with excellence that our mission and vision and purpose is a little different. You are one of the things I found with and see if that's different is the other have these wise giving strategies they are probably the most competent team of gift planning attorneys and experts anywhere around giving strategies that are wise and even very complex and yet they want to see the money getting into the hands of the ministries, the people doing God's work is not about getting into a donor advised fund and leaving it there. It's about mobilizing it through God's activities, which is so wonderful about the National Christian foundation, Valerie. We alluded to this idea that you can put things inside giving fund, other than cash. Talk about other assets of the opportunities there yes and that's one thing you you touched upon was that we have wonderful brilliant experts that it just for decades been taking in these, what we call complex charitable gifts or complex assets so they might be things like shares of a privately held company. Mineral and oil rights.

In addition to appreciated stock mutual fund shares. Maybe it's commercial real estate residential real estate. They can even do strategies with a given hold so that you're not necessarily selling the business right now but you want to do some charitable giving through that right now I'm so we have just folks that there is just a broad array of different strategies they can use to help you look at your whole balance sheet and so you in partnership with us in your tax and financial planners can take a look at everything and decide what are the best things to do, what best times this makes sense.

Valerie is an attorney, you would know that you so often years ago when we would think about giving. In this way we would think of setting up a foundation and yet the complexity of the cost. The legal work was so prohibitive. That's what I love about a giving fund as it just makes it so simple and easy and cost-effective to set up.

It is not your experience, it is, and we have had multiple folks come to us that are looking to do something different than have their charitable foundation. They may still want to run it. But in some cases the things that are current. There giving into that foundation are maybe only getting a basis to suction. Maybe they're not getting fair market value so they might want to use a donor advised fund for those kinds of gifts or to take in those kinds of assets. It may also just be getting too complex or too costly and it's not serving their original purpose, and there are some things foundations can do. You can employ family members on that something you can't do, and the donor advised fund and other vehicles that sometimes unless you want to do those few things it makes more sense to do them through a donor advised fund or even a supporting organization paired with a donor advised fund and that may be simple and less costly than the foundation option.

Valerie, some people may be saying to themselves NCF. Not sure of ever heard of these folks how old are you along if you been around how many people have you helped when you say you I'm getting go with National Christian foundation is so, we received about 3.7 billion in complex gifts we've granted out $12 billion since 1982, we've served over 63,000 charities. So we seen some things we've learned and we've helped hopefully, multiple givers and I charities come together to accomplish kingdom purposes Valerie for more information.

I know you will have some videos and some explainer documents lots resources on your website just a few seconds left helper folks understand where they can go to learn more. If you want to go to NCF giving.com you can look for things like the giving fund video. Also, the giving fund concept sheet and there is a resource called maximizer giving and 2020. Excellent were so thankful for the National Christian foundation. Valerie, thanks for stopping by.

Thank you for having me Valerie Hogan of the National Christian foundation is been with us today will have links to the resources she just mentioned in today show notes that money was a large building where do you know if you have enough money of 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.org and sharper than any two-edged years that we can just double-click click on refresh. Because our minds.

We need fresh paging. I came down with thinking, that your down situation that I promise you this quote by Schreiner transformation does not bypass the human personality you Lord thinking is altered. But what we thought this whole thing was going to take place in our brain and our personality transformation in our walking around every area in line got total with a quick word with Tuesday night Bible study 9:30 PM Eastern 30 central Tuesday no problem program. 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.

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Lots of good information. West Palm Beach, Florida hello Gina, thanks for holding it. What's on your mind will bind last. I bought a new car and I got big payment for six years but I had to get gap insurance because of the crime of stealing so basically every now and I basically pay my car off like to say I make extra payments paid off early, then it will be even with my Kelly blue book. Now maybe because I got like a six year level now and I want to bring it down to make an extra payments to make up for three years and make it a little bit of money in my savings account.

Would it be better for me to keep my money into my savings place for the three years for my car to come up to the Kelly part because if I get it now then you know Mount Dalton get paid off because at the Better for me to make extra payments now or put it in my savings and then wait for the three years that you say and then pay the car off the loan that I was like forced to do that as well.

It's a great question, Gina, and for the benefit of our audience. Gap insurance really is designed to do just what Jim is talking about is covering the difference between the balance of the loan and the market value of the car and so often times, folks can be upside down.

Especially if you make a small down payment. You drive off the lot, you lose 30% of the value. Also in your underwater if for some reason the car was totaled. Or, she said stolen. Now the sudden the loan won't be paid off because the value of the car is less than what is owed and so the gap insurance steps you but it does tend to be somewhat inexpensive because very few claims are made against it, and if yours seems costly. You may want to shop around for a cheaper policy, but I like the idea of you having it for the reason you mention once you get to the place where you are keeping up with where the balance is no higher than the value of the car because you're paying it down quick enough, then you can drop that policy. You don't need to be more in terms of where to put those excess funds. I suspect I'm fairly confident that the interest rate on that car loan is higher than what you're going to be getting in your savings account so it's actually better for you going pay it against the principal balance of the car to keep that declining so you're paying less interest as opposed to putting it into your savings account.

Assuming you have some other savings you can use for emergency fund. So I like your plan and keep the gap insurance perhaps shop around for a cheaper policy if there is one, but let's take your excess funds that you're using to pay it down so you're not upside down on the car and let's pay directly against principal. This does not make sense to bring it down me because half of my loans are not my money on my interest correct and then you can drop the gap policy when the balance is low enough on the note, such that your existing insurance would cover the full value of the car and be able to pay off the car note because it's down low enough where the value of the cars will suffice. So I think your head in the right direction here and I appreciate your call today very much is great question. Let's go to Sioux City Iowa next and doing your own moneywise live with Rob West so Mark call I'm calling about the required minimum distribution on a 401(k) okay how do you calculate the yeah well is what you're talking about. There is the required minimum distribution that you have that is triggered at age 72.

Do you use a CPA to prepare your taxes yeah okay that would be the person I would reach out to what I would do that now because there is a certain schedule when you need to take that RMD each year, beginning at that point, however, that doesn't apply this year since under the cares our MDs are suspended for 2020. The IRS publishes a table that is going to be based on your age, life expectancy, and of the balance on the account that will tell you exactly what that required minimum amount is usually to take at least that much and you could go and look that up on the IRS website, IRS.gov.

Just look for required minimum distribution table, but I go ahead and reach out to your CPA and begin that conversation now so you're ready when the time comes and you know exactly how much you need to take and when you're going to do it and then work with your investment advisor if you have one to determine where you want to pull that from if you don't already have that amount in cash. It's probably going to be this is a rough number. You certainly don't want to use this. That's got to be around $22,000 or so but again you want to get somebody to calculate the exact amount based on your age and using that table and in the other the balance in the account of the thing I've mentioned is if you are a giver dog. Don't miss the opportunity to use the qualified charitable distribution to satisfy that RMD where you do giving out of your IRA your church or another ministry.

Perhaps, in lieu of giving you were to do out of cash which will give them the full amount and not and you not have to pay tax on it and it's called a qualified charitable distribution very easy to do and it's a very effective tool for somebody who doesn't need the money that the IRS is requiring they take out so check that out if you will and and then connect with your CPA on the exact amount that we appreciate your phone call today. Thanks very much, Rob. We had a caller earlier today and he had to leave us but essentially he was wondering at $25 a month. How could he begin a savings plan $25 a month doesn't sound like a lot, still a possibility. Obviously, oh absolutely yeah and in fact with a lot of the new Finn tech financial technology that's out.

It's easier than ever to get started with a small amount I'm thinking of better men some thinking of wealth front. Even the Schwab intelligent portfolios you can open an IRA or a Roth IRA or traditional and set up a systematic contribution right into one of those accounts they'll use ETF's very low cost or even free index based ETF's to build a portfolio based on the question and answer process that you work through very low cost.

It really has opened up retirement savings to anyone. The matter how much you have Steve were glad that you try to reach us today and we hope you heard Rob, this is moneywise live that with more calls this.

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This is what he was your hostess Rob last times for today's broadcast is a reprise addition of the program, but I think the upcoming information will help you to bless you and wise steward of God's given Oakley Kansas hello Barry what's on your mind. I will be one month. I want or one. I would like to be able to get that director nine to someone purchasing all give it to all important. All I like to know what and anything else that would be troublesome to me. You will. I'm not a CPL just tell you generally know what you're talking about here from a tax standpoint means really the main tax implications, just as you said as long as you wait till after 59 1/2. You're not can have a penalty, but all the money you pull out is going to be taxable as income in the year of the withdrawal. So if you're talking about a substantial sum of money that you could inadvertently push a portion of your taxable income into a higher bracket and that would perhaps give you reason to send us spread this out over perhaps at least a couple of tax years, again depending upon how much you're talking about adding to your taxable income for any given year.

That would be the first consideration. Secondly, just recognize that this is expensive money in the sense that it is money that is going to need to be taxed and so therefore you're going to have to take out a good bit more than you actually need for the gift just to cover that because of course you want to set that aside and even pay that in prior to filing day depending on when you pull it out. I think the other consideration is just is this the best source of funds. I appreciate your generous heart and your desire to bless someone with a gift, but is there another place to pull it from you is this money you're counting on for the longer term, to be there to provide income for you in this new season of life to be able to cover unexpected or long-term medical expenses things like that. And could you accomplish this another way without pulling out from a 401(k) in terms of gift taxes. You know there's an annual gift tax exclusion for exemption. That is $15,000. That doesn't count toward the lifetime gift tax exemption but anything over that 15,000 per individual that you make a gift to you, or if you're married 30,000, 15,000 each. You and your spouse will go against the lifetime gift tax exemption which right now sitting at about 11 1/2 million dollars. So that's not an issue for most people, but you just want to understand the implications of that so I think at the end of the day again.

I like the idea you want to bless someone, but just understand that the taxes will be an issue. You may want to spread it out and is this the best place to pull these funds or could you do it somewhere where you're not impacting your ability to fund retirement either now or in the future you follow that the many thoughts not really that time and not need to write them down. What I need to find out more. Absolutely I would visit with CPA someone who could really help you explore these issues and make sure you understand the plan appropriately for whatever tax would be.

Do you also benefit if you haven't done this for my retirement plan to see you have a financial finish line that you're working toward, and you have a gold that you're saving toward over the balance of your working life so you know I'm my own track ahead or behind can I do additional giving even beyond this and really have a plan of those two professionals would probably be different folks. Although that's not necessarily case the CPA and then the financial planner to help you with retirement planning.

I recommend somebody who shares your values and that's why we trust the certified kingdom advisor designation and you could find both types of professionals at our website.

Just go to moneywise live.org and then click on find a CK and you can watch in your ZIP Code there in Kansas and hopefully find somebody near you, and I'd interview a couple of them before you decide on who's the right person to assist you. You sound like a generous guy and were glad that you called today.

God bless.

Thanks very much out to West Richland, Washington.what your question for up my call financial education you give me a mailing my wife and I after much prayer and counsel have decided to retire early. I'm 57 she's 55 are our last day at work will be next month and we got currently 401(k) through her employer. Both of us do in their currently set at a 2030 target fund and were just wondering since we won't be touching that money for a while. Should we go ahead and reduce it anyway to a more conservative like a 2020 2025, or should we just leave it where it sat and don't touch it in the 2030 target retirement fund. What the allocation is to stocks versus bonds percentagewise I think were about. I want to face like 6040, or maybe a little little more little higher on the stock side okay yeah so I think the key here is you know, often times mean you'll see a rule of thumb, you take 100 minus your age, or because people are living longer hundred and 10 minus your age. And that would give you the stock portion that you would want to have so you know for you. I'm saying you know that would come out it somewhere between 53% in stocks down to 43% in stock so let's call it between 40 and 50% in stocks where you have between 650 and 60% in bonds.

But that's assuming that you're going to begin to transition to generating income from these investments. When you reach retirement because most folks will not have accumulated enough or will not have enough in the form of guaranteed income sources like Social Security so they're having to convert retirement savings into an income stream to supplement other income sources and that's why they need to get really conservative, but we still wanted allocation to stocks because if you're going to live a long time.

You're healthy in the Lord Terry's we need this money. The last for decades.

So we need to have a growth component in their you're probably a little bit more aggressive than that, but I think as long as you're comfortable with that, given the fact that you are not.

If I understand correctly going to be drawing from these retirement assets.

Specifically, this 401(k) and it's going to be able to continue to grow.

You could stand to take you know a little bit more risk rather than 40 or 50% stocks Europe at 60 so I think that's really something you and your wife need to pray through and just say, would we be okay if there was, let's say a 20% decline and are do we have the staying power emotionally and the time horizon that we could let it come back and we wouldn't get to the bottom of a market in a bear market and get tired of it at a 20% decline, or 25% and go to cash or go to all bonds and then miss the recovery, which is what so often happens, so I think you almost have to anticipate the downside of a portfolio with a 60% allocation to stocks and just make sure you with, you know, so a good bit of honesty to yourself. Make sure you really believe you could weather that storm and wait for to come back if you or she or together. You say you know what that would just really give us some real sleepless nights will then I think that your answer we need to start to dial it back toward a larger allocation to bonds does it make sense to thank you okay very good. Yeah, thanks for your call sir. God bless you thanks that we appreciate that you're listening to moneywise love with Rob West.

Today's broadcast is recorded so we won't be taking any calls but we have some calls lined up in some great information coming your way, but I think you'll find usable at the very very least, this is moneywise. Love, I'm Steve Moore will be right back. Many people adopt an attitude toward marriage and finances that it will all work out somehow.

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Ephesians 210 says for we are God's masterpiece is created us anew in Christ Jesus, so we can do good things he planned for us long ago. Think about the good things that God prepared me to do. He planned long. One of the good things that God is to do is to share the truth of salvation through Jesus Christ are lost dying world.

People around your living despair without whole and have no idea about the rest. Take us out here, at any moment, you don't want them to be left start every day by praying for everyone you meet that day before you meet and always be ready to move everyone you meet closet if you're not intentional happened so be intentional Sherry there is nothing more exciting than knowing God is using you people closer to join is not America.com. This is anagram lots of daily life for daily living.

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After all of the calling program. If you call in yourself, covered it all so back to her phones.

We covered it all pretty much don't you think. I guess probably know there's probably something we covered something theological.

Perhaps the end times eschatology relative Mr. Chicago, Illinois Amelia, thanks for putting up with us. Can we help you today call regarding retirement a little background.

I have 27,000 in liquid hundred and 45 in the market 45,000 and I'm planning to retire in five years, I'm 55 right now I cannot collect pension until I'm 59 1/2. I'm finishing up my Masters I'll be done in February and I have 17,000 in student loan, which by the way LOAN forgiveness if I work for years is my question. What is the best strategy.

My pension delay of 10 years to collect okay so you had originally mentioned that you could start collecting the pension of 59 1/2 into thinking that may not be possible.

Is that right that's what I'm thinking you know things are changing. I know I think section on retirement and things you mentioned that those days of having a pensioner long gone and I'm thinking well that's the case that may happen to meet you. Also keep in mind you, what were saying is that companies in general are phasing out pensions moving from what they call defined-benefit plans to defined contribution plans. The difference being with a defined benefit you get a stated amount of money for life for a lump sum on retirement and usually a gold watch to go with it and that was back when people work for the same company for 20 or 30 years. Today they replace that with defined contribution plans meeting they give you a vehicle to put the money in, but it's up to you to contribute to it, but excuse me if you have a pension plan already in place that you've been contributing to her that's going to be available to you based on a certain number of years of work although they could make changes to that.

It's pretty likely that it would be there, but are you saying you want to factor into your planning. The fact that you may need to survive without it for another five years.

Is that what you're trying to work toward years to retire but I won't collect one. You know there's rumors going around and hello Gary so close to retirement, that they may put a delay of money years before you can collect okay.

It's never a bad thing to run these scenarios just to have a plan for what you would do that hundred and 45,000 to let's say that grows to you in your contributing to that currently are no okay so let's say that grows in the next five years to 200,000 for the sake of argument that we would typically look at taking about 4% a year from that which would be $8000 if you add that to any other income sources would you plan to continue to work an extra five years or would you want to try to do this by still retiring at the time you were planning on retiring.

If this all went down with the pension pension I would thinking to hire that at nine, I would collect and then work elsewhere. Okay, well, the bottom line is the first thing we have to do is we have to get your retirement budget sets we have to know what would your expenses be in retirement. You're no longer saving for retirement because you're in retirement so that comes often you hopefully your debt free. At that point, or at least closer to it than you are now and so we recast your budget based on what you think your expenses will be in retirement. At that point we have to look at what the income sources are that are available if you have a pension great would factor that it at some point we have Social Security. Whether you take that earlier Weigel full retirement age at some point that would kick in and if one of those is not available, then we either have to make that up with you continuing to work to drawing income or in addition to that door instead of that taking your retirement assets to the roughly hundred 45,000 today plus whatever grows to in the next five years plus the contributions you're going to make again.

We said let's say that's between 200 and €225,000 that could be converted to an income stream. But that's not alone. Probably going to cover your budget because that's probably $8000 at the most. Maybe 10 unless you need to pull more than that which is going to eat into the principal so I think you just need to begin to run these scenarios to say if I get my pension plus drawing 8000 a year from my retirement account. Will that cover my budget and if so, great. Then we go to scenario number two. What if I don't get my pension I have to continue to work well. What would I expect to bring in the form of income, and then what I had, you know drawing for my retirement account on top of that, and we just have to come to work through the numbers at that point, but it all starts with having really a clear budget set out for those retirement years does it make sense to you, you know, I refinanced.

I got into senior mortgage. I'm at a 2.25 interest and yeah and I'm just trying to figure out what the best way to do this well at this point, it sounds like you have a great mortgage. I love that rate, I love that you didn't do a new 30 years only 15 to go and so I think the key right now is for you to keep your lifestyle modest and just continue to work as long as you can so that you have options and if you don't get the pension is expected, you just continue to keep that income at some point the pension will start paying out at some point you'll start collecting Social Security and all these answers will begin to make themselves clear, but in the meantime it's about continuing to keep that income flowing for as long as you can mail you, thank you very much. Let's go to Birmingham Alabama quickly and Peggy what your question for Rob West go out in our own home have $20,000 in trading I do on my own business I hope to work another seven years, I have 190,008 conservatively in stocks and bonds question is should I liquefy the 190 because of the election. I can't afford to lose everything. I am totally alone yeah well Peggy.

First of all of it just encourages you know, it sounds like you're doing a lot of things right you got equity in the business you're continuing to work you got a plan for how long you're gonna work your 68 years old you're completely debt-free including your mortgage, you got a healthy stock and bond portfolio and you're doing a lot of things right, but you know this thought that perhaps you need to you know pull out of the stock market because of what could happen the election. I just don't want to encourage you to go in that direction. Number one most of what's probably going to happen over the next couple months in the market is already priced in in terms of in terms of the of the political cycle in the election.

We have coming number two as long as you're invested properly meeting you have the appropriate amount of stocks versus bonds risk levels diversification it's oriented toward your goals and objectives not beating the market or beating somebody else know your neighbors stock market returns but getting an appropriate level of return with a commensurate amount of risk based on your time horizon which you've Artie said his is seven years until you stop working, but even then you're good if the Lord Terry's and your good health. You're going to need that money the last could be for couple of decades or more and so having a stock allocation despite what could happen over the next couple months.

That's not the time to pull out of the market.

What we want to look at is the long term trends we been through elections before even tumultuous ones. You know if if I would've said to you last January were about to have a major pandemic hit the world and the stock markets can go from an all-time high to a bear market in the shortest period of time in history.

You probably would've pulled out of the market. But guess what happened.

It went down that fast, but it came up just as fast and so the challenge is, as soon as you start to try to time the market, you got it only picked the exit point but you gotta pick the entry point. So instead, what history says and what all the data says is that the better approach.

Peggy is just to stay invested in a long-term strategy to buy the dips to invest systematically and recognize there's going to be ebbs and flows through's political cycles through pandemics through bear markets and recessions. But as long as were invested properly were going to do well over time and as soon as we try to react emotionally or try to pick a time to get out and get back in. It's just always a losing proposition. So I just want to encourage you don't go in that direction. Stay fully invested.

Assuming you're in the right allocation for your age and objectives.

No rubber thinking back were both old enough to have seen some ups and downs and when you look at the domes when people did lose a fair amount of money. None of those down times were predicted no one for you. No one said you know in couple months to could be a pandemic or it was never connected to anything that we could really see nothing that major groups of people agreed on.

So I think what you're saying is that you'll ups and downs will always be the best you can do is stand there for the long haul and we look back at the history of the stock market going back to World War I and before it's always come back and that's always been the safest best place to be what it's exactly right in every decade. Steve if you go back the last hundred years every 10 year period has its major upheaval and we don't get out of the market.

Then we if we stay invested. It always comes back. It always moves to higher ground. The key is having the right mix of investments that are appropriate for you at the time. Thanks Rob do appreciate that and thanks to our technical crew today for helping in the background pushing all the right buttons, Amy, Aaron, Dan and Jim moneywise. Love is a partnership between Moody radio and moneywise thanks for listening.

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