Holding Too Much Company Stock

A single Bible verse, may contain the most valuable use of investing advice ever given to that says give a portion 272 wait for you know not what disaster may happen under.

Diversification always invest that exception financial planner and teacher Rob West answers those questions that he thinks yours on topic 800-525-7000 number 800 525 $7000 more to write to be with us here moneywise are such a thing. Well, absolutely not.

But that's why they call it a teaser rate is no exception. But it turns out, a lot of folks think there is to them. There's one particular stock. It's so enticing that they can't resist buying dangerous amounts of it in their 401(k) that would be Tesla millwright know the Lord talking Apple stock is not all company, all I know I buy that stock, but I know will now I really am intrigued what Scott could hold that much power over people.

It's their employer's stock companies make it really easy for their workers to buy it. Plus, it's probably well. It probably feels good to invest where you work your I think that's why smart people who normally understand the importance of diversifying their portfolios. Just let that rule go out the window when it comes to company stock that's risky because again there is no exception to the diversification will and here's why Steve there are many sad lessons on this 20 years ago accounting scandals at WorldCom.

You might remember also Enron resulted in the collapse of their stock, their employees lost billions in retirement savings and then history repeated itself. More recently, 2008 you remember Lehman Brothers and then again 2015 RadioShack while okay how widespread is this problem or concern today. Yeah, that's the good news. I guess the horror stories we just cited steam seem to have gotten people's attention Vanguard reports today that only 10% of all investors in their defined contribution plans own any company stock at all. But here's the troubling part half of those are about 5% of Vanguard's investors still have more than 20% of their portfolios in company stocks. Well that's exposing them to too much risk. If something happens to their company okay but we always hear that it's good for employees to be shareholders in the company. It gives them incentive to work harder to increase valuing something they own, things like that. I think that's generally true, but it's the amount of ownership.

That's the problem. You see there's nothing wrong with owning some company stock, but it should be a relatively small part of your portfolio know more than you would by any individual stock. People tend to ignore the inherent risk of buying an individual stock because it's their company. Surely they would hear about something going wrong in time to unload their stock right.

Well, not at all. In fact, Enron executives were unloading its stock by the freight car while telling employees and other investors to keep buying you see the ruler diversification is intended to spread the risk to keep us from investing too much in any one area. So consider this your already heavily invested in your company. Even if you don't own a single share of its stock. If something happens to the company your paycheck and benefits could be lost.

So do you really want to put a big piece of your retirement savings and risk as well. Good point. One reason employees may overbuy company stock is because maybe they see the top executives doing it like you mentioned just a moment ago box cutters were being out of stocks were being unloaded.

They figure that must be saved. If that's what this mark I should write you have to be careful there though.

First, those execs could also be investing much more outside the company so they could absorb a hit on company stock values more easily.

Second, Steve. Research shows that top executives routinely unload their stock incentives over time. In fact, they tend to sell company stock at twice the rate they buy it. So the bottom line is there's never an exception to the diversification rule just like there's never an exception to the wisdom found in God's word and that's the truth. Thanks so much Rob will we should probably tell listeners how they can double their stock in moneywise we that's right well here at the end of the year.

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Rob my part so number one. Here's the phone number 800 525-525-7000. If you want to call and talk with Rob West today about anything financial or Christmas related 800-525-7000. Again, it was all my fault, not Rob. Rob is our chief executive I and and I know that because he has a parking space. I am the other hand, havenor do I have a dressing room, and that's the last time I bring it up this year until sometime in 2021 couple things on that number one what I don't have a parking space in my name on it. There is enough spaces out there that I find one. And secondly, I have a feeling we are getting her more about the dressing room at some point I just have a feeling well.

However, your lead. I mean, I don't want to get into sticky territory here but however you feel 800-525-7000.

If you have a question for Rob today about anything financial, anything you might be struggling with. Maybe it's your your brother-in-law's sizes. You didn't get them and now it's too late now. You don't know what you're going to put in a stocking or or maybe it's just making your budget work at Christmas time.

Or maybe it's investing maybe it's something to do with the grandkids. Nonetheless, lots of open lines, five open lines 805 two 575 is like one of two things is happening here either a you have a lot of coffee latte RV the Friday vibe is made its way into the program. It's the combination of friends who knew I'm a coffee drinker have sent me early Christmas gift horse. There is the Friday vibe, which is even more intense when the air conditioning unit breaks down and that's the case today. So the air is heavy with with the vibe and we also have emails. In fact, here's a here's a cold email Rob when covert is all behind us.

Should I pay back ties when we couldn't afford that we couldn't afford to pay this year when covert is behind us and hopefully that sometime next year. Yeah, I mean I would be careful and think back ties.

In summary, I understand the spirit behind the question. We don't want to be legalistic about it and yet you can never out give God. So yeah, if there was a season where you paused your giving and I would say no. Whenever possible, I would just keep on keep pressing on into your giving even a difficult season. It's really that opportunity to demonstrate our total trust in the Lord.

But if you paused your giving and now you're kinda coming through the SEC you know I probably should've given more systematically than I did like to make up for that, or perhaps make a larger gift of urine absolutely go for it again. You know, we should be generous and looking for ways to continue to move our giving along and so do what you can.

The Lord sees your heart and the key is, I think we want to be faithful and proportionate in our giving, and then beyond that systematic giving always be looking for ways we can give sacrificially as the Lord leads right and we may get to another email later in the program.

The address is that you have a brief email for Rob a couple of lines.

The address is questions@moneywise.org.

Let's begin by going to Chicago and neck. How can we help you today sir hi I and I want you on a lot of my wife a livestock about 100,000 company. I mean it. Although I mean I know the good right now that is growing but it might now yeah it's a great question that I can and I again I think this is where a lot of people find themselves in fact in this study we were siding from Vanguard deal 5% of their investors hold more than 20% of their portfolios in their company's stock, why is it a bad idea to do that.

Well, it's just violating this principle we find in Ecclesiastes around diversification which just says simply, we should spread the risk and not have all of our eggs in one basket, because despite what might be true about the company today and it doesn't really matter what company it is because this could apply to any company despite what's going on today, there may come a time where the company perhaps even suddenly goes from being something that is really growing quite well to having real headwinds and that you could come from any number of avenues whether it's competition or no fraud or something that was being done, you know, behind the scenes like in the case of Enron and WorldCom. So I think for that reason, it's always good to say no and as I receive company stock. I'm going to sell and diversify among a larger number of companies and therefore I don't have all the eggs in one basket, so I think for that reason I would say yes.

You probably consider not having more than 5% in any one particular stock. And if this represents a pretty high percentage of her overall or your together overall investable assets than it would be wise based on this principle we find in Scripture to go ahead and begin. Over time, systematically diversifying her holdings into other investments that would be more diversified if that makes sense. Even if we don't buy yeah exactly. I'm assuming you have the right to sell it and it's what's called vested right it doesn't matter how you got it, really.

The idea here is that once you get it, assuming you have the right to liquidated. It's part of your assets right. It's God's money that's been entrusted to you whether you purchase the stocks or they were given to you as a is a benefit of being employed there. But regardless, it makes up your total investable assets and when you look at your investment strategy how you're managing God's money, including that money that's working for you in the market for your future.

I think we've got to evaluate that in light of biblical principles are one of those key principles is diversification.

So yeah, even if it was given to you as a benefit. I would say you should systematically and prudently factoring in tax considerations and otherwise begin to diversify away from those high percentage holdings in a single company, great question neck were glad that you call us today. We hope that helps you guys very much and Robin. It certainly is interesting.

The Bible obviously talks about diversification in a number of different places, but I give a portion to seven or even 28. That doesn't admit, that doesn't say 5% or 9% or 12% were well maybe it does now that I'm doing the math, but you feel comfortable suggesting that 56% is should be the max in one's portfolio, you know, I think you got a look at it, just in terms of what type of account are we talking about and how much overall investments do you have meaning. Do you have more than you need, so therefore you have the ability to be a bit more speculative than somebody who's your perhaps a little bit behind and really trying to catch up in terms of long-term savings but yeah somewhere between that 5% market the most 10% in any one company would be prudent already. That's good.

Austin, Texas. Lisa welcome to moneywise live. How can we help you looking to retire next year and that will be a year earlier than I would apply for security job for 40 years, and investing in the 401(k) for that length of time I got a healthy 401(k) what my question is what exactly when I retire to deal with. That should should and can I take like a years worth that many NTL security can and should I take a man like you had some personal savings that I can't live.

I just don't know because I know at some point your mandated self is not sure how that works. It's a great question Lisa. I would be looking right now for the investment professional. If you don't already have one that you'd like to hire to actually manage these assets when that time comes, because what makes a lot of sense is for you to roll that 401(k) to an IRA again then have a professional investment advisor begin managing that for you based on your goals and objectives and part of that would include what income needs. Do you have pre-Social Security and then beyond Social Security so that it could be managed.

That way, where there's a small growth component to keep the returns you more than let's say one or 2%. We want to try to get up around the 4% range. At a minimum, but yet preserve the account for the long haul, which means not taking too much risk in terms of how you might approach that I think the key would be you don't want to take it out in a lump sum you want to take it out as you need it. Certainly if you have maybe 3 to 6 months living expenses. I'd probably leave that in tact and then convert the 401(k) into a monthly income stream that's going to make up the shortfall until you can start collecting Social Security.

If you had more than 3 to 6 months expenses saved up in emergency funds, then perhaps rather than touching the 401(k) you could use part of that, but I wouldn't go below that that six month mark.

If it were me and yeah I think I'm beginning to take out only what's needed as income replacement from the 401(k) until you start collecting would be great and that if you need a little bit beyond that, again, that would be part of the overall strategy on how you invest the 401(k) and what you need to pull out in terms of required amount you would need to take out that's not going to come until down the road at age 70 to see you have a little bit of time before you have to think about that doesn't make sense to delete my 401(k) and company or click it out when I retire and yeah I would take it out, roll it into an IRA again but I would select that investment professional in advance if you don't have somebody there some wonderful certified kingdom advisors there in Austin, Texas. You can go to our website moneywise live.org just click find a CK and I interviewed two or three the IRA. The leases can give you more investment options will be limited to the options inside the 401(k) market structure.

Thank you, Lisa, how did you feel the last time you made a not so good decision as pastor Andy Stanley points out our decisions, like the steering wheel of our life and so you get decision-making right you get life right in his new book, better decisions and fewer regrets. You'll learn five critical questions to apply to every decision you make. So you can feel confident you're getting it right to request your copy with any gift to moneywise of $25 or more moneywise live.org do you feel like your hands are tied with dad preventing you from serving God.

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David, thanks for holding what's on your mind and I just like to thank you for your wonderful program Larry Burkett convinced me to get out of debt back in 98. The best decision I ever made it amazing how many lack of restless nights to get when you're debt free agreement today. The last of my parents is recently passed away everything involved in trusts split between my sister and I and of course, the recommendations are that lead split the trust. In general, each go our ways pretty heavily invested in some good bonds, some of which are I think 4.8% to blue-chip stocks and so forth. But there's a couple concerns and I don't anticipate even having to use this money so I morning and putting it back into a trust or what have you. So it could pass through to my sister Rick's daughters my nieces and their grandkids and so forth so that my first concern. So I think what I would best for you today would tell me like my first three steps I could make and I'm been a bite to get a CPA and an advisor God by his ambassador advisor throughout the 20 that mind if you'd like to tell me what my first three steps should be. Yeah, I'm sorry to hear about your appearance passing and I'm glad to hear you're really leaning into this. I think having some competent biblical counsel come alongside you in the form of a certified kingdom advisor both in the tax area and in the investment and legal area would be good to me. Typically what you would do when you have a trust along's is a part of an estate. It will obviously get the original trust stocks with any amendments or any restatements, make sure you understand exactly what's there to read them to understand the trust terms and find the names of any beneficiaries again.

While this may be a fairly plain and understood. You just want to make sure you have that, then you want to gather brokerage statements, bank statements and insurance policies you've of course need the date of death for each bank account. An insurance policy and you'll contact any brokers involved here or investment professionals request a print out of the securities and you those will you want to understand exactly what's in the trust then typically what would happen as you go online and obtain a tax ID number from IRS for the trust and open a bank account in the name of the trust and that's what's going to be the recipient of any of the proceeds the life insurance payouts that the beneficiary was being paid to the trust any liquidated assets there's going to need to be an income tax return filed for the trust and so you want to keep careful records so I think really just getting everything in order. Getting all the documents together so that when you sit down with some professional counsel. You can go over everything get everything consolidated into one place and then as the funds are distributed again. Keep careful records of that then it will be your decision at that point. For whatever portion is coming your way as it's paid out to decide what you want to do that and then that really segues into your own estate planning.

Whether it's your will or whether you may want to set up a trust so that you can handle the disposition of your assets for your loved ones and mentioned family members that you want this to passed through to the trust. The benefit there is not going to affect prior to your debt. If ever needed or beyond your life and really handle how those funds are distributed special minors. David information helps you. Thanks so much and were happy to hear that you are now debt free now. Bless your brother 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 investing is more than just return. 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 so 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 is there a place for you to find out when you read heaven and the afterlife. A one volume said when losers hallmark works on eternity in heaven and the afterlife lifts the veil on eternity and reminds us that this world isn't all there is. This book will challenge you to see what cannot be lost before it's too late in the afterlife available online or at your favorite Christian retailer. For more Moody publishers.com which helps me but we suppose when you reading today in the word by ourselves. We need the word of God should get out of into the ocean is the financial wealth you leave behind could be the best thing that ever happened to your loved ones or the worst in splitting hairs.

Given 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 lot branch of government, rapidly moving to receive the coronavirus proxy with both House Speaker Nancy Pelosi and Senate Majority Leader Mitch McConnell getting the shot today without capital Dr. urging all members of Congress to join them, stands on the verge of adding a second vaccine to its arsenal as the coronavirus outbreak descends deeper in the wood smoke lethal aphasia. The FDA is evaluating a shot developed by Derrida and the National Institutes of Health and a decision could clear the way for its use as early as Monday. US stock indexes pulled back from their record levels as the white drags on the site.

If Congress can reach a deal to send more cash to struggling workers and businesses but about 124 points that as backdrop. Nine and the S&P was off 13 this is SRN news moneywise. Still lots of time for a lot less: mention art from 1985 when I first met Larry in the past. He was incessant about the envelope budgeting system. We talked about it.

He talked about it. He talked about it. We all had envelopes. I think we kept the number 10 envelope companies pumping just on our own system here, but I'm thinking not only was it effective, but now were were in the new digital age. Not as many people have envelopes. I'm thinking if only there was a digital way of doing it the way that used computers, but it would it would represent the old envelope system when it be cool that would be incredible. In fact, we got it.

Steve writes that there was no iPhone so the iPhone was introduced until 2007 Larry Burkett has passed in 2003. So yeah, this was so smart phones were not a thing back then, so there was a lot of number 10 envelopes floating around but nevertheless it is an incredible way to manage your spending. Control the flow of money in and out, and when it can be in the palm of your hand and you and your spouse can share accounts. It's a beautiful thing and that's where the moneywise outcomes and it's brand-new just released in the last couple of months and it's incredible. So yeah I go to your app store Apple App Store Google play store search for moneywise biblical finance downloaded today and get started.

You set up all your envelopes you can download your transactions electronically from all your institutions, they automatically if you want them to get placed into your envelopes. Everything is in sync in real time. There's a community there for you to chat with and talk to about the questions you have and we would love to have you a part of it. So head over there today. Moneywise biblical finance is the name of the Lovett, Rock Island, Illinois is next Denise. We know you been holding and we sure appreciate that what your situation and we understand good news as far as your son is concerned, and graduating during our current treatment program, Christian college and how to do the funding because the operate will be coming out that tree feel the military route back there. We like outbreak Roman anything except to love one another. So when we do. Well, there's no doubt medical school is expensive.

Now the good news is it's a profession that when you come out the other side. You should have a commensurate to paycheck that would allow you to pay this back. The key is coming out of medical school, making sure if there is debt incurred and hopefully we can keep that to a minimum that live the lifestyle is is modest that he keeps expenses low so that those first 10 years out of school.

He can really focus on paying down debt just as quick as he can build without seeing a lot of increases in spending on lifestyle that would take away any surpluses that may be able to be applied because want to try to try to get that paid off in this in the first 10 years of possible no scholarships obviously is the place to start. Denise, if your son happens to know what specialty in med school. He's gonna pursue.

I would go online to that professional association to determine what financial aid and scholarships they have available.

So, for instance, the American Association of colleges of osteopathic medicine has several different scholarship programs available. So if he knew that's the direction he was headed. He would want to look into that and apply for some of those scholarships. If he had any interest in becoming a medical missionary. I realize that may not be the path that is on but if you was others.

A phenomenal organization called med send you'll find them@madsen.org and they make grants to prospective doctors who want to use their expertise overseas for the needy.

There's also federal assistance program so so there's the public service loan forgiveness program that would forgive student loan debt which includes the direct subsidized and unsubsidized loans plus the. The plus loans and consolidation loans.

But this is where you work in the nonprofit sector and through government organizations that if you do that for you a certain length of time, then the other loan would be forgiven.

You have to make the payments while you're waiting, but at some point that would all be wiped out. But again, that's for a narrow slice of those doctors that are either planning to go overseas admissions or willing to work in a public service employment. So if that doesn't apply that I think the key is just trying to your work in the summer trying to keep those loans as low as possible and then really focus on repaying the debt just as quick as he can. When he comes out of school.

If this is the path God has about great all right absolutely Denise God bless you a Merry Christmas. Thank you. Thank you. Thanks, Denise God bless give our best use Kilgore, Texas hello Roger what your question all we are all required one year of all, we have a home loan file left and we now have a car loan of about 20. And we are entering about half of our investment portfolio is that a good idea or not. Appreciate the question Roger told just a bit more, first of all, I guess then you know if you're looking at the roughly hundred and 10,000 you currently got about 225,000 or so investments is that right right right very good and then are you pulling any portion of that out to supplement your other income sources to live on each matter is that you're sitting there growing now where going out about 1400 Bob Richards about yeah okay see your point outside around 17,000 a year, 225,003 about 7% okay in terms of the home. If you were to pay this these two off. Would you still have to pull out.

I assume you would we just want to pull out of the investments we were all but not nearly as much as we are now estimated have to pull out at the point. While we were probably a lot about 400 and 400 okay alright so at that point the plan out for Glenn and we went out… All of the on box but we now and what mostly would remain in our couple of annuity okay very good. Well, you know I like that planning the key like for you to do is to get that down them, if you pulled 5400 year and hundred 10,000 we be talking about roughly 5%, which is manageable at that point, I think the key is you don't want to pull us out all at once, because I don't want an extra hundred thousand added to your income. So if you do this you want to do it over a few years and I talked to your tax preparer about the best strategy for not pushing any portion of this up into a higher tax bracket.

So what. For instance, he or she may recommend you do this over three years. The key would be. We want to get if possible, your expenses down such that were only pulling 4% a year. Ideally, so on 110,000 if that's what's left. You know I'd love for you to only: about $400 year which is about $360 a month so if you can pay this off some expenses and get down to roughly 3 months and I think this is workable, but I would spread it out over a couple years and check how many years. Thanks so much and Merry Christmas to you for your your career. Even your retirement strategy for your getting Christian foundation and your family to learn how many lines.org theory. I need some help.

Sometimes if you like I can't get a handle on my money. I mean, where does it all go. It sounds like you need the money might help you train your contractor spending three dollars you spend every morning on coffee every morning.

Also get access to financial advice sounds awesome.

Let's do it.

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It seems to contrast the headlines of her day in the message of Christmas could not be further apart how far we have fallen and how it must break God's heart want to point fingers drive 20 member of the church allow the reality of a God who loves us in spite of what we've done to be lost by her silence and bending people with the truth. Jesus came to manifest his love and sacrifice his life so that we every one of us can receive his gift of eternal life. Your job is revival outside the walls of my moving everyone and everything will help doing a go tomorrow.

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But nonetheless you're listening to us and we appreciate that. Most of all, Gurnee, Illinois, and Barry what you question for Rob West love your program and married everyone work for comp.

You're welcome. I work for a company that matches my 401(k) and I maxed out on that now.

They also have options to where I can convert part of the money I've saved with that to a Roth IRA.

I was wondering if I converted that now would be any tax advantage. Well, there would be a tax bill that you would old, but the advantage would come later because it would start growing tax-free disaster. Are they talking about converting a portion to a Roth 401(k) as opposed to IRA Roth IRA. I haven't explored it altogether in my getting there.

But I'm not quite sure. Okay. Typically, unless you separate from the company. You can't move it out into an IRA so it's probably what they're saying is they have both options that got the traditional 401(k) and the Roth 401(k) and there to perhaps let you convert a portion of it you one option to consider if there is both options there. Mary would just be to freeze the 401(k) that you have now in terms of not continuing to contribute to it obviously would stay invested in whatever you have it in and whatever makes sense. Moving forward, then begin contributing moving forward to the Roth 401(k). I actually like the idea of you having both buckets available in retirement. Both the tax-deferred that you would still have to pay tax on and they tax-free, which is the Roth option where you've already paid the tax because that way. Depending on where the tax code is and who knows where it will be when you get to retirement. Plus however much income you need to pull out plus the required minimum distributions which apply to the traditional and not to the Roth. It would give you multiple options to decide which is the most cost-effective bucket to pull from. So rather than converting it and paying a bunch of tax on the amount you've Artie put in again.

I probably consider starting to contribute to that Roth 401(k) moving forward but at the end of the day.

This is a tax considerations I'd probably get with your tax preparer and just ask that individual to weigh in on this conversation before you make that decision very yet to hit learned that I can wait times 72 to start pulling it out with a nice little advantage to thank you sir for the good advice. All right, we present a very Merry Christmas to thanks. What's that 72 thing that Barry mentioned, I think it doesn't last forever. Right. Well, you know, I mean it can change at any time, but you'd used to be 70 1/2 when you would have to take your required minimum distributions, but the age has been moved to 72. If you hadn't started taking your RMD's. Yet through some legislation changes yeah okay oh Wooster, Ohio, Benjamin did have a question for Rob today. Yes I do. I all right want to say thank you very much for what you do.

Okay I got a question you got a question regarding my mortgage loan. Okay, God. With your gadgets, wisdom and understanding. Whether or not it would be ideal to refinance sure couple questions for you, Benjamin. First of all, what is the value of your home roughly well. I talked to a couple other loan specialists and they looked into it and we haven't had it appraised recently placed, but they were estimating about hundred 30 okay will you on your current mortgage hundred and one okay and how long have you had this loan five years I was it a 30 year loan when you started. Yes, it will okay and what is your current interest rate at 4%.

You have good credit score yet. Last question you plan to stay in this home for at least 5 to 7 years yes okay yeah so I think clearly, it can make some sense for you to refinance. I wouldn't go with the new 30 year mortgage. I'd be looking at a 20 or 25 year loan. But if you look at a 20 year mortgage. You should get down around 2.6% right now and as long as you don't pay an inordinate amount of closing costs and thinking maybe 1 to 2%. So alone like this, you were talking in a $3000 at the most. Hopefully around 2000. And then you're going to save quite a bit in interest about a point and 1/2 and you know that's gonna really save you a lot of money over the long haul key will be you just want to make sure that the monthly payment still fits into your budget when you go with that 20 year mortgage that's get a shave five years off, but with that lower interest rate to your essay baton in interest. If though that mortgage payment pushes up even with the lower interest rate with the 20 year term of it pushes up got out of your reach where it's becoming owner asserts above 25% your take-home pay then you may want to look at a 25 year mortgage. But given the tell your to save over a point almost a point half on the interest rate as long as you don't pay too much in closing costs and you can stay in this home for a while.

Your prime candidate for refi. The key thing there is. Make sure you shop it around. Give at least three quotes I'd look online@bankrate.com to see who has the most attractive rates right now and then. You can also check with your current lender or bank as well just to see what they might have and compared to what you find.

Then we wish you the very best. Thank you for your phone call today. I think we can squeeze in one more here. Let's see how my Greenwood, Indiana and Rob we say hi to Cindy Cindy were so glad you called today how can we help I like your well transcribed by my head. Well my okay city just to find a really quick you will is probably the simplest option. It allows you to specify how your assets will be divided and distributed to your heirs upon your death doesn't go into effect until death in the process is overseen by the probate court in your county. A trust can do that and more.

It allows you to bypass the probate court but it's a bit more complicated and therefore little more costly to set up others.

The revocable kind which would be more typical in the air revocable kind you maintain ownership in the revocable trust until death within a revocable, you sign over ownership of your assets to the trust. So with a revocable trust for the benefits. Well, it allows this to go into effect prior to death. So if you are incapacitated you could designate somebody to take over and manage the assets inside the trust. Again, it could pass anonymously and therefore outside of probate and even outside of the public record. It can last beyond your death.

So if you wanted to give directives around how assets were to be distributed so like if you had minors that were you know you're going to be giving an inheritance to, or to somebody on their behalf deal prior to their age of majority. You could control that through the trust.

If you had a lifelong dependent that would be another reason why you'd want to trust so it can allow you to really specify how the assets are distributed at various points and based on various triggering events in the transfer on death just lets the beneficiaries receive the assets at the time of your death without going through probate. So it's again it's a little bit more expedient. This would apply to retirement accounts, 401(k)s, things like that and you would choose the beneficiary with a married person, the spouse would. A lot of times have rights to some or all of the account on death but it just creates for a little more efficiency with certain types of account so I think the next step for you is to decide first of all you absolutely need will.

The question is whether a trust would benefit you based on your situation. The assets, the complexity whether there's a business whether there's minor children what you want somebody be able to take over prior to your death or you want to be able to control the distribution after your death as opposed to just passing according to your will, through probate and those are really the considerations I like for you to to visit with a godly estate planning attorney to make these decisions. Somebody can ask a lot of questions and help you draft the documents that you could also at that time put a power of attorney in a healthcare health care surrogate and a living will, in place as well, which are really separate legal instruments that I think are required and necessary for everyone that's if you don't have an estate planning attorney is a believer there in Indiana connect with a certified kingdom advisor at our website and ask for referral you can do that moneywise live.org just click find a CK hope Cindy God bless you and thank you so very much.

Rob almost out of time, but give us 32nd son with Christmas, still a week away.

We stay focused on the reason for the season. Any thoughts in that regard.

Well yeah Steve I think you know, it's such a wonderful time of year and yet we can get lost in just the things that are other than the real reason. And so we want to enjoy family we want to enjoy this all the sights and the sounds and just hopefully slowing down a little bit at the end of a tumultuous year and yet we want to create keep Christ at the center as you said. And so I think really celebrating the advent in the coming of the birth of our Savior really getting into Scripture and spending some time just talking to the Lord and as a family, perhaps reaching out to those in need in your community. Maybe you can adopt a widow or a widower at your church or perhaps are still time to connect with the family use really been devastated financially this year. See if your church can connect you with someone I would just say others focused and be Christ centered and if you do that, then you can enjoy the real reason behind what we doing this time I like about thanks so much Less. Hope you have a great weekend. I things like technical crew. Amy Erin, Dan, and of course our own Jim Henry, thank you for listening today. This weekend something nice for someone and then please come back and join us again Monday moneywise live