Perils of House Flipping

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Equal housing lender not licensed in Alaska, Hawaii, Georgia, Massachusetts, North Dakota, South Dakota and Utah and you want some of those home improvement shows you might be tempted to think that flipping houses is easy and profitable, and you'd be half right half the time. But the truth is flipping a house is never again it's only profitable if you manage right today came to Advisors President Dr., West has a list of reasons a house with wrong, just in case you tempted to try your calls at 800-525-7000 800-525-7000 times more the perils of house flipping next moneywise line.

You know those house flipping shows always have drama but before the episode ends. Things usually turn out in the flipper makes money good money. Typically, so why do you suppose they rarely show people losing money on the flip because it would make for great TV people would want to watch. Perhaps that's the reason.

So instead we typically see a happy ending with those shows are you saying sir that reality TV is something of a misnomer, people, people may be lose money on some flips and well begin to tell us why today I suspect what he would he have for us.

Well, it's a good point and you're exactly right. You know the overall reason Steve is a lack of understanding of all the reasons that can go wrong going into it with a pie-in-the-sky attitude perhaps but a lot of things can make that pilot contract on your face. On the first one is this minimizing the potential to lose money.

You know, house flipping is a form of real estate investing, and a high risk one at that. You see people making 10 or even 20% profit on a TV with a flip but to what stock could you buy that might give you that much gain without exceptional risk. Well, I can think of one. Well, just ask the folks who lost their shirts on their brother's brother-in-law's hot stock tip. Maybe you could find out there okay. What else can go wrong with the flip yeah I next would be underestimating the amount of money you'll need for the flip not just to rehab the property but to hold onto it before you're able to sell, even if you intend to do a lot of the work yourself.

A flip is still expensive and especially now with our current home building boom material prices are way up.

Then there's the holding part of the process. One thing that is real on those TV shows is the scramble to get the rehab completed and on the market. That's because unless you bought with cash, you're paying closing costs and an extra mortgage payment every month you hold the property and that's of course chewing, writing, and profit.

Then consider that the average flip takes from 3 to 6 months and you start to get the picture. That's always about the money.

Well money and time and about the only way you can avoid that time, money, pressures if you live in the house while you're doing the rehab.

That way you're only making one mortgage payment and there's one more thing related to money that can go wrong with the house flip Stephen that's a higher tax bill. But let's say you're successful in completing the flip and selling the property and you make money well since it's probably not your primary residence. You'll have to pay capital gains on that profit. That's another thing they don't show on TV. And since the goal is to flip the property as quickly as possible.

You'll likely do it in less than a year.

That means you'll have to pay taxes at the short-term capital gains rates, which unlike a typical long-term rate of 15% that you'll probably end up paying 2224 could be even 32% in taxes. Depending upon your household income that would be good okay without something else. Yeah this one is also about time and that is specifically budgeting time.

Even folks who flip houses as their regular job will tell you that it's a time-consuming business. A simple task that you budgeted an hour or two to complete may end up taking an entire day. Meanwhile the clock is ticking again costing you money. And if you're only doing this part time, let's say, nights and weekends while you work a full-time job elsewhere. The time and cost to get the job done go up dramatically.

Okay, makes me want to jump right in with my soul and my hammer or maybe not.

Okay, anything else.

Well, the next one would be overestimating your physical abilities, not just whether you have the construction skills to do the flip that's of course important, but also whether you simply have the physical stamina that you may plan on having professional contractors come in for things like electrical and plumbing but that still leaves a lot of work. You know, flipping houses generally requires long days of hard manual labor holy 2525 pound boxes of ceramic tiles and the like. There's also the emotional toll. Steve, the can take a lot of put a lot of stress on you and your marriage so let's just say you need to go in with your eyes wide open for you approach this kind of project information. They will come back and check some more.

This is moneywise line back to moneywise line for a couple minutes today were examining the concept of looking houses something you see on TV all the time now that there hundred and 50 or 515 channels. Lots of people out there flipping houses. Makes for entertaining TV doesn't always work out in real life. If you believe what you hear in fact, Rob Leiva, we've had a couple of comments here. It's our fair Facebook question of the day is how successful would you be flipping a house for profit. Lisa says depends on the market. If you can buy when prices are down and hang onto it for a while and do it yourself than sell when the market goes back up and probably pretty successful.

Sounds like maybe Lisa has done this a joy says have always had an interest in doing that. Watch the TV shows, etc. but I don't know when she leaves it hanging there and maybe if you don't know you better not do it. I do know what you think. Perhaps Bob Weyden said I've done it twice and with planning and budgeting. It can turn a nice profit. So obviously Bob is allowed to work for them.

But James raises an interesting point. He says it a lot of times when you're doing a house flip. You might use superficial coverings of floors and cabinets bathroom tile maybe cut some corners do it on the cheap to get it sold where you're always just looking for what somebody might see in then pay top dollar for and he saying as a Christian we need to be sure were doing the right thing and not just covering something up to get it sold. And I think certain certainly we always need to be operating with integrity.

You know, I might just finish the segment Steve by saying that were not trying to throw cold water on this for everyone were just saying go in with your eyes wide open. There are plenty of people that are very successful flipping homes. You know, they tend to be quite knowledgeable about the local real estate market. Many of them often have their own real estate license. They're typically good at estimating time and costs for all aspects of the project, including how long it's going to take to actually get it sold and many of them have considerable construction skills which allows them to at the very least oversee as a knowledgeable expert. The work that's being done if not do a good bit of it themselves.

So just make sure you have the right skill set the right temperament, the right staying power.

The right cash reserves before you take something like this on you and I think the DIY part is so important. If you have to pay everyone to do everything on the house that you're wanting to flip back and get really pricey on the on the flip side of that if you've broken more than one thumb while hanging a picture with a hammer, then you probably think that is a sign think that is a sign there if you're not speaking from experience on that. Are you broken no one's been a real job in one of my eyes once and well that's a story for another day.

But you know what end of the hammer to hold. That's a good study, that's a great starting point.

A call claw hammer is for a reason.

Okay, here's her phone number 800-525-7000 give us a call today if you have a question about anything financial not just about flipping houses were not particular experts there. But as Rob said you want to go in with your eyes wide open. Make sure you what we are well-planned and well budgeted for something like that 800-525-7000 out to Grand Rapids, Michigan. TJ my friend nice to talk with you today. What's on your mind. Recently I was at a store retail that I needed to buy a bed and they had a promotion going on 18 months same as cash. And so my wife and I even though we had the money to pay for it. We thought what we could use their money for the next 18 months just paid up a little each time making sure that we got paid up in time and we ended up receiving a credit card to this same retailer and is that 29.99% and we didn't know that it was going to be on a credit card. We were told that I thought it was just going to be more of a simple loan type where you just make monthly payments and is not yet paid up in time. Everything's fine. Is that normal practice and what happens if I don't activate the card.

Yeah, yes TJ. What ended up happening with the purchase did you make the purchase with cash there in the store or did you actually use this financing option, we use the financing option because of the fact that you we just thought it would be kind of simple loan and yells you like us that we had the money to get it paid off in time.

Sure so you when you got your first statement you're seeing the balance, but they're also giving you charging privileges to charge more. Is that what's going on yes correct and I really don't want that. That credit card so yeah I am trying to figure out how to get rid of it right right well I think the key is you know what your expensing is not uncommon them in there trying to heal get you to spend more because remember every time you spend beyond this initial purchase. They have the merchant rebate. Not to mention the fact that they want you to start carrying a balance where they can actually charge you some interest because they've agreed not to charge you interest for the first 18 months on that initial transaction, so I would just say that I don't activate it and just keep paying this on this current loan that you have where they're offering 0% you I'm not a big fan of these in the future I wouldn't do that just simply because you know the reason they're willing to do that is so often we might have the best intentions to pay it off, but we don't.

I'd rather you save up and just go ahead and buy with cash and not open another account in terms of the impact on your credit, there's not really any impact there not activating the card will have very little if any impact on your credit score, the account is considered open. From the moment your approved. Also, you might still be charged an annual fee if one of applies even if the card that remains on acted unactivated so you need to check on that. Your score was affected both positively and negatively.

By accepting this loan, it would typically go down a little bit because you took on new credit plus you have that credit check that went into getting you approved for this but obviously having an account where you're in on time. Payer is going to add to your positive credit history so I would just say let's just get it paid off is soon as so you can certainly within the 18 months and I would just let that card be.

In fact, you may want to call them and tell them you have no use for it you do you you're not going to activate it then and they can note the account accordingly.

Their marketing department by now knows that if they mail out a thousand of those cards more than a couple of people will bite and that's what they're hoping for a TJ. Glad you called today thank you very much.

Chicago, Illinois hello Nick, wondering about not fixing up a home but maybe buying a home yet.

I I wouldn't. My wife wanted to buy a house this year and but considering the current market, and because because called it in my I've heard about it before I note or bearing people not delaying payment, paying their mortgages and I just wondering if and because the price is not very grown-up, and so I was wondering because the man went very low weight, yes.

Do you currently own a home or are you renting I okay so you be selling your current home and potentially looking to buy. Maybe something a little bit larger set right yet. Okay. What is the value of your current residence roughly 40 okay and what you owe on it. 14 okay and what would you be looking to spend if you were to sell this home and buy something else about 500 okay. All right.

And you'd put hundred percent of the proceeds into this new property.

Do you have anything to add to it yet you have okay and you would would you go ahead and add that to the proceeds that you pull out your current residence okay is so obvious that you be going in with with quite a bit of money and you've got nearly 200,000 in equity right now assuming 340 is a good price, good market value if you had 100, and to it you have almost 300,000 going in. I would imagine. Perhaps you could do a little bit better on the interest rate you just want to make sure you look at your budget.

Make sure you can support it. You in terms of whether or not this is the this is the right time, that there's really not a bad time as long as you are exiting from a current home in the market and entering a new one, meaning yell if you you are paying top dollar. Your you should get top dollar for the one that you're selling, so you should maximize the value on the sale of your existing property even though you'll be you'll paying at the arguably the top of the market for this next purchase. I like the idea that you saved in Syria to put an additional significant sum of money to make this jump which tells me that your your prepared for it financially so I don't have any problem with that. I think now's as good a time as ever for you to go ahead and make a move like this. Assuming you really thought and prayed through. Whether this is needed in terms of this increase in the home and you you recognize will be a slight increase in the mortgage payment each month.

But apart from that, the market conditions.

Don't give me any concern because you're already in the market and you got a property to sell neck were going to leave you there, but we were glad that you called today and we trust that work well for you is you and your wife, ponder this, but rates have seldom been lower so… Something you want to think through for sure how this is money wise live he's robbed last time Steve Moore what we know for sure is that we have some open lines would love to chat with you 800-525-7000 800-525-7000.

More money wise live to this back to minimize live finding God's plan for your financial life. Let's go right back to our phone lines Miami Florida Marsia what's on your mind today. Thank you, wondering… But you know Marcia Armbrust is the Marsia I would say that it is very close to gambling. Unless you are a professional trader. You do this as your trade is your profession and you have specialized training but often times you be doing it for an institution or you are doing it for yourself but again you have a very specialized training. I think for the vast majority of people that are trying to day trade the market that when we first accept the notion that were God's money managers. Therefore he owns it where the trustee the steward of God's money that we have to say what would the owner have me to do with his money, and when we look to the Council of Scripture which is a trustee you'd look to the trust agreement, which in our case is the Bible. I don't think we really see any support for this type of investing.

Where were kind of jumping in and jumping out trying to make a quick dollar.

When that brings pretty significant risk along with it. In fact, a Proverbs 21 five speaks to directly to this the plans of the diligent lead to profit as surely as haste leads to poverty and I would say this is not a steady plotting type of investment strategy by any means. So that's why think when were were taking God's money. We recognize our role steward elevates our responsibility. We say then. How should I manage effectively is a faithful steward God's money. I think we have to take the long view of for the vast majority of us looking to seek a return on God's money, and I think the risk associated with speculative investing in daytrading would put it more can to gambling and does begin to get into an area where we may be violating biblical principles, so again it's not a black and white.

There certainly would be a case in some instances for that type of investing. But for the vast majority people listing this program. Right now I would say we ought to just stay away. Marcia, thank you. Or rather Marsia, thank you very much we appreciate that Rob is if you consider yourself a student or a professional when it comes to something like daytrading you have any problem with someone at least researching. Now I know again if this is something you're going to commit the time to in specialized training, you know, oftentimes, it becomes more technical than a dozen emotional. I think for most folks there reacting emotionally to a headline that they're seeing are feeling like you're missing out on something.

That's not the type of investing that I think would be prudent, but when you're specially trained to do something like this or you're doing it as a profession on behalf of a much larger financial institution.

I think that does put it into another category.

Well said out to Aurora, Illinois hello Jim what your question for Rob site but it is detailed.

My father passed away left us the money.

My wife and I eat after which brought with it my whole and not rent the situation were in right now we are renting. The HOA is running the rental but the bank owns it, because it went into foreclosure. They're not giving us an opportunity at this time to buy five-year goal or be forced to move out west we wondering should we stay here in Canada. Bank on the opportunity that we may be able to buy the home at a foreclosed price with the bank when they divulge that information to us or should we just kind of take it month-to-month and and get out west it's a nice home. Property value is increasing this area, so we just wonder should be stay at and hopefully by or should we just kind of pack it up and in the make a change now yeah yeah well Jim. It's a great question and obviously there's the financial side of this. But then there's the nonfinancial side which with a home is where I would start you know, I typically don't look at a home is an investment now you might say wait a minute, it should increase in value over time.

Right yes it should. And that's great. But the definition of an of an investment is you would sell it when it accomplishes its purpose, meaning if you had a nice, move up in the housing market, you might get out of bed and sell it will. That's not how we look at our homes because, well, there are home sits where we live right and so I think we got a start from that perspective.

So I would start with where is God calling you. And if God is leading you out west for whatever reason work of ministry or whatever it is lifestyle. I would put that first before I would consider with your home, not with an investment with your home before I would consider whether it's an opportune time or whether something may come down the road with regard to being able to buy it at an advantageous price. But if God decides to keep you there will then maybe you take it month-to-month and see how it plays out.

Jim, thank you and wish you the best with that when we return will talk with Kathy Gary and you don't like. If you'd like to be able to speak clearly and if you'd like to find out more about who we are and why we often don't sync up our tongues with the rest of our bodies.

You can find out that and much much more relevant stuff when you visit moneywise live.org that's our website. Lots of great information there to help you with your budgeting in the way you manage your money and not only hundreds of biblical principles, but just real practical day-to-day things to help you find a certified kingdom advisor or to find a budget coach to help you out. That and much much more.

When you visit moneywise live.all hard G Gary were coming to you Bob friend but the first it's Kathy in Fort Lauderdale and what's in your mind, Kathy.

I think her I write you to bring that credit report account. Yeah Kathy so when you talk about freezing credit you're talking about placing a pin number on each of the credit bureaus that is required anytime somebody wants to pull your credit for the purpose of extending you credit or giving you a new loan and dumped you would do that directly with the bureaus. Kathy's even want to go directly to Trans Union, aqua facts and experience.

And when you get there they'll each have a slightly different process, you should be able to handle electronically though you just want to look for the option to a freeze your credit by law.

All three of those major bureaus will have to offer this to you at no cost. So there shouldn't be any expense to that and it will be for a period of time which will it at some point turn off so you have to reinitiate it, but I would just go directly to each of the bureaus and tell them that you want to freeze your credit and the walk you through the process. You can go to a single website if you just looking to pull your credit to see your credit file. I would just go to annual credit report.com but to freeze it. You gotta go directly to each girl.

So those sites again.

Kathy Trans Union equity facts or Experian they'll pop right up easy to find but does that does that help you was or anything else is gently about Cleveland, Ohio hello Gary what your question today hello I see a check from the government, and I don't under stand what it's for. There is no explanation given other than at the bottom it says FOC FEC Social Security. I guess for high and as and they sent me this night that I try to call different locations. You know what is this all about, and no one seems to know what is the amount of the check Gary if you don't mind me asking $428 that's that's interesting. Are you making Medicare payments by any chance you okay it could be a refund of an overpayment that would be the most likely scenario. So you're right SOC SEC does in fact stand for Social Security payment for insurance so you don't often times you folks will get a check for $255. If you have a family member that passed away passes away. That's a standard burial benefit.

In other cases, you may see that when you receive a stimulus payment because you're enrolled in and and claiming benefits and Social Security and so they got your information from that repository. But in this case, it's likely a refund of overpayment on the Medicare payments but if you wanted to chase it down to the end. I would do a little bit more due diligence by calling the Social Security office check for the number for your local office set up a virtual meeting and you can get to the bottom of it but I'm getting gas and that's all it is.

That's what you're looking well what route how do you know these things.

I had no idea what it is what the answer was to this question, we have a great team.

I'll just leave it at that.

Garrett got bless your brother we appreciate it. Let's go out to Tennessee hello faith, welcome to the program and what's in your mind. There every thank you much good thank you and send 75, $75,000 I don't have any investment so I was wondering about that market. I don't know I can't afford to laser :-) I don't know went there I should indent for stock findings, etc. I am not sure what to do with my not as an savings account that this is pretty much all I have, when I wanted fixed income and 63 cell wondering what you thought about. I want to be a good steward of God's money.

Of course my concern here is doing now yes well I certainly appreciate that Satan and I understand you know what you're describing here because you want to be found faithful. You don't want to lose the money because you want to be a good steward and you wanted to be there down the road if you really need. Let me ask, are you able to live within the provision that you have coming in the fixed income.

Now I probably cannot do everything out like I can let a few minor projects that I needed to do in my kitchen countertop and sink and some carpeting tears.

Let's get some numbers going here so you said you have 75,000, then you have some savings accounts. In addition to that we have other than the 75 in liquid funds.

Well, you know, really. I just have made for my checking to twice a month and it's really for things like Christmas and taxes and insurance. You know, let's see what's another auto expense as okay let me ask you this. Do you have any funds apart from the 75,000 don't have a specific purpose in the next 12 months and I might take that from time to time. Okay, so it would.

I'm getting out there is you know it did to your age living on a fixed income. I'd really like for you to have a good six months worth of expenses and reserves.

That's not in the stock market that's liquid that's readily available and in that we would call your emergency reserves.

See, I don't count the savings for various purposes that you know what they are. You know your you know quarterly insurance payments, and you know you're going to have Christmas every year mean there's some things are same for and that's a good thing you should do that but that's really not a part of your emergency fund because it has a stated purpose that will come within the next 12 months.

And so if we were to say let's take of the 75,006 months at a minimum unless you felt like you wanted more in the goal here is peace of mind right.

What would be six months worth of expenses. Do you think roughly how much okay Glenn okay and what you need to spend on these renovations and repairs now going and cantering out on the cabinet and I think Simon ask you to hold the gun hit a break we come back working to finish this give you my thoughts.

Okay family is talking with Faith in Tennessee.

She wants to be a good steward.

A good manager of the money guys given her at the same time she doesn't have a whole lot of money and there are some repairs that need to be done in the house and Rob turn it over to use very good does of faith at 63 years old, living on a fixed income, living within your means and saving for your nonrecurring expenses which is really important.

Those things that come up every year just not every month and you typically don't get a bill form in every case that's all good and in addition to that, you have 75,000. So if we were to take six months worth of expenses and put it into an emergency savings account separate from those specific savings accounts. You told me that would be 18,000. Let's round that up to 20,000 and then we talked about some minor home repairs you want to do. Putting new carpet upstairs and some cabinets were guessing that's gonna be about a $5000 or so. So basically you'd have about 50,000 to invest. The key is you want to be fairly conservative with this right you want to growth component to it may be as much is 30 to 50% of it in stocks and the rest you probably want in some bond type investments so that together this the portfolio would not have as much volatility as the overall broad stock market would do better than you could do in a high-yield savings account, yielding 1/2 a percent, and where I would go for that. If you're comfortable in computer savvy in your comfortable doing business on the Internet.

Probably one of the Robo advisors would work for you. So either betterment or the Schwab intelligent portfolios fidelity even has one of these were their very low cost.

You'd answer a series of questions about your age or stage of life stage what your objectives are, how much risk you want to take in its of their very plain English type questions that you're responding to in their gathering all that information and then they would put together a portfolio through a computer algorithm that is given is very low cost. It would probably be at least half in bond type index ETF's and the other half in broad market stock indexes probably maybe a little less than half in the stocks and then you'd move the money in there and then you could watch it is much as often as you want. You'd certainly get a statement regularly and it's a very low cost, very hands-off approach to investing. Now you have to recognize that there's a good portion of it. That's at the risk of the stock market so that the market was down 30% like it was last March year probably be down 10 to 15%. So you'd have to be okay that you could open a statement one day in your 50,000 is 45 and that's just a part of investing.

But if you take the long view. Recognizing okay. I shouldn't need this money in the next five years because I've got my income and I got my emergency savings and am saving for those things to come over the next year, then you could let it grow and it should do better than you could do in a CD or savings account.

The other approach would be to visit with our friends@soundmindinvesting.org and let them take a little bit more hands-on type approach to the same type of investment strategy. So I would go one of those two directions.

Either the Robo advisor at Fidelity Schwab or betterment or go to sound mind investing.org and I think you should be looking at investing between 40 and 50,000 of the 75 and faith. We do appreciate your call today.

Thank you very very much out to see Libby, Montana hello Ted, how can we help like all, have a rental property that about about 10 years ago for $10,000. It's probably worth about 130 at this point I don't have a mortgage on it. I have learned on my own home. Should I sell my rental property and in the current market, and pay off the mortgage on my current home.

I do have other rental property. It would just be a small percentage of my monthly income that I give up. But I would gain 500 mark. By doing so, yeah, yeah well I think you know it comes down to add to how strong the conviction do you have to be debt free. I think the Bible certainly affirms this idea that we should be moving toward. If not, over time, completely debt-free, it gives us a lot but flexibility, a lot of peace of mind radically gives us the ability to respond.

I think more effectively to the prompting of the Holy Spirit when it comes to giving you know being unencumbered is a wonderful thing, and we've got to put that against the financial side, which is your giving up an income stream because you have an income producing asset and yelled dear, you look into, reduce the amount of time and energy are having to put into maintaining that. Would you prefer to have a more passive type, investment strategy or just use it for debt reduction so I think we have to weigh these two things are where I would start is to say that if you're married, you and your wife pray through this together how strong a conviction to we have that we want to be debt free right now and if you have that conviction which I would certainly affirm regardless of the financial side, if that's where you come down that I'd say yeah use this as an opportunity to say thank you Lord for the increase in the value of this property.

I'm going to take the proceeds of that to pay off that first mortgage of any get out of debt and I still have a couple more properties that are working for me that if you said no, we are handling this debt on her primary home just fine and were paying it down.

In fact, we may even take some of the proceeds of this rental property and accelerate the payoff but we like the idea of this asset being something that we continue to own because it is producing an income and I kinda like working on these properties, and maintaining a minutes. Kind of a side business for me and I think we got a look at both sides of this, but tell me your thoughts. I know I would deftly have the gold. Everything will be good stewards of what God given up only by his great situation we are in now so you think you know maybe the sooner the better. But I know the market may not end this way and that gives me an opportunity to get a little sooner. I just know. We can brag about it more, seeking other people names on what situations will given that added insight there on your desire to be debt free. I'd say absolutely no could the housing market continue to go for sure.

Could this be the top.

It could be, but I wouldn't use that is the basis for my decision. I would say what we know for sure is there's been a significant appreciation this property. We know you guys want to be debt free.

You've got other investment properties. Let's take this money, let's pay it off. Let's be thrilled that you own your home now free and clear and allow the Lord to move in other areas of your life. So I'm affirming this idea Taber glad that you got through today. Thank you very much for that quickly removed to Orlando and the Deborah what your situation thank you very much for all you think I'm totally paid for. I have never been married.

I don't have children. I'm looking at what you do with my resources not here for my home one night during donating it to my church which is nearby, thinking they could use either missionaries are coming through our first families that need a place to stay or whatever but I also don't want it to be a financial handicap for the church.

My question if I don't need. Our house is completely paid for the best way to think about that in every just make sure I understand you're looking at making this donation at death is a part of your status at right yes yes yeah I know there wouldn't be any negative financial impact for the church whatsoever.

I think the key is just to make sure that that's set up in advance and done properly. Do you have the will had you have a relationship with the estate planning attorney. Have you thought through kinda how you're handling your estate on all fronts.

Okay, yes it is. Be a good time to make sure that everything is up-to-date and at that time I would express your desire to give this gift to the church me basically what would happen it will be a huge blessing because they'll receive the at the home and then they'll be able to turn around and sell it in the proceeds will then you will be available to them to use for ministry purposes. So I love this idea.

You just can want to make sure that all that is put in place properly as you do your estate planning so I don't see any downside whatsoever, and I think since you want to update everything anyway.

Now's a good time to get this done. Deborah, we hope that helps you. Thank you very much. You sound like a very very generous person and I'm sure your local church will be blessed when that time comes. Thank you very much and rob you none of us really like to spend a lot of time pondering when that time comes, but it's going to come for all of us, unless the Lord comes first, so I better we think about it earlier rather than later and so do you have time to pray about it. Think about it a look at all your options in these days there are far more options than they used to be from a financial planning standpoint right well and frankly Steve, I think it's a real stewardship opportunity. You know I love the question Ron blue the author.

One of my mentors is always challenged his listeners and readers to ask and that is is the next steward chosen and prepared because we realize everything we have belongs to God. It doesn't belong to us so we need to choose the next steward. We don't want somebody to choose that steward for us. We want to make a choice whether that's and there's only three places either the government taxes, charity or ministry or garter errors right is the only three places that we could go so we want to intentionally choose that next steward and we want to make sure they're prepared and that's most often in the case of kids that are receiving large amounts of money but to start stewardship responsibility extends through that final decision at death. What's that wonderful line that Ron blue mentions in his book splitting errors about if you love all of your children you will treat them one way he is as if you love your children equally. You will treat them uniquely, which a lot of people have a problem with because they think that's just not fair, but his idea is that you know we realize our kids are different, they have different needs. Different stages in life and because of that we might want to treat them uniquely. Even though we love them equally man love it Rob, thanks very much you've been listening to moneywise live this radio program is a partnership between Moody radio and moneywise media and of course you are a huge part of the three legged stool as well. Thank you so much for your prayers and your generous donations that allow us to come to you each day. If you'd like to know more about making a gift or a donation to us.

It's moneywise live.org, click the donate tab at the top of the page I thanks to Deb Amy Gabby TN Jim for their technical service today. Join us again tomorrow