More Ways to Save Money

This is Doug Hastings, VP of Moody radio and were thankful for support from our listeners, and businesses like United faith mortgage. My grandma loves Ice-T it surfing so I go to hang the grandma for a bit and I see she's holding her big plastic cup with her tea, but the cup is literally sitting inside one of grandpa's sports socks. I'm not making this up. No one can make this up grandma you okay of course dear the socks soaks up the sweat and keeps the tea colder. Hey, it's Ryan from United faith mortgage and as I thought about it later.

I thought that's the kind of mortgage team. I want us to be the kind that's willing to take any step needed to get the job done on your new home purchase, refinance, or cash out refinance and can we help everyone know, obviously we can't know willing to use grandpa sought to keep a drink called you were willing to do whatever it takes to make sure you're taking care of.

We are United faith mortgage not a faith mortgage is a DBA of United mortgage Corp. 25 Millville Park Rd., Melville, NY license mortgage banker for all licensing information, go to NML as consumer access.org corporate MLS number 1330. Equal housing lender not licensed in Alaska, Hawaii, Georgia, Massachusetts, North Dakota, South Dakota and Utah. John the rugged filler founder of the standard oil Company and one of the wealthiest men in history still believed in spending wisely. In fact, he once said, I believe that the rift is essential to well ordered living as retro as I said call it 805 five 7800 more more ways to save money on moneywise so Rob I'm guessing you did know old John D died in the 37 but into the days of hearts he be worth something like 420 billion so it's a little hard to imagine him looking for bargains at the discount store perhaps, but he also Steve understood that using money wisely was a virtue in itself beyond just the financial benefit that perhaps even read Proverbs 10 five. Read see who gathers in summer is a prudent son, but he who sleeps in harvest is a son who brings shame, maybe some right so let's talk about some ways to hang onto the money that we've gathered what you have for us yet. Let's start with taking a hard look at your gym membership maybe costing you as much is $50 a month or more. Consider canceling it and working out from home. You know there's more and more exercise videos on YouTube.

You can access for free. Also, there are some great free workout apps you can try Nike training club is one another called ladder one called Friedel 3X and map my run.

I will put links to those in today show notes or you could buy a bicycle and go for a ride.

It's very low impact way to exercise and get some fresh air may be better slightly anywhere than the smelly Jim can argue that one right next to shop smart for major appliances. If you have to replace a refrigerator furnace or close dryer. Don't just look at the sale price. What seems like a great deal could end up costing you more in the long run.

So take your time. Read some customer reviews make your choice, not just on price but also on reliability and energy efficiency.

You can compare the energy Star rating on any major appliance before you buy a unit that lasts longer and uses less electricity will save you a lot of money over time, even if it's more expensive in the beginning yeah great information.

Okay, what's next well price is still important so once you found a quality item that you want to purchase. You need to do some comparison shopping. Fortunately, that's much easier these days with the Internet, check out sites like Clark deals.com and Google shopping to find the lowest prices available online again. Look for links to everything we mentioned in our show notes to date moneywise live.org and if you're buying something in a brick-and-mortar store. Steve make sure to check for lower prices and one or more competing stores that usually well worth your time and did you know that some appliances and products go on sale at specific times of the year thinking a particular Memorial day Fourth of July Labor Day. Some things like that can be really effective and knowing when that happens really could save you a bundle but how do you know when something like that's going on sale while glad you asked. Amazon actually has a price tracking feature to help with that. Don't ask me why but it's called camel camel camel with your spot will send you alerts when the price of an item drops well course a camel has home send when I have no idea why it's called trying that I was reaching for fourth. They're hoping some miracle of them.

I okay what else do you have some will next is a way to save 100% on something instead of buying an item that you need for a one-time project or event. Consider borrowing it. Instead, the odds are someone at your church.

Sure in your neighborhood already has that extra long ladder you need. Or maybe folding chairs for a party.

Don't be afraid to ask. Of course that's a two-way street. Offer to reciprocate. If the lender ever needs anything from you and most important, always return a borrowed item in the condition you got. That's right okay good time for one more. Maybe you talk about this one a lot but it's so important that it bears repeating whatever the topic of saving comes up and that's to use cash whenever possible. Imagine saving 10 to 30% when you walk in the store. Well that's what studies say you'll save by using cash psychological factor using real money makes you want to spend less. Seems too simple to be true Steve, but it your calls. Anything financial 800-525-7000 West times are you listening to moneywise live timeless wisdom of God's financial choices and decisions help with the choice or decision for the oil in your car. It's not always the same in every situation. Can you tell I've been helping my daughter recently 800-525-7000 800-525-7000.

And there's another one.

Rob, you know, if you don't check your oil regularly meaning the minimum once a month that could cost you a lot of money and in the long run. So checking your oil on a regular basis and the air in your tires will save you some dollars.

Anson Hanks yet now checking out so you can't just rely on the gauge. Now you actually want to check the dipstick and actually see where it measures and interestingly some of the German cars like BMWs these days don't have a dipstick they have a little meter on the – but that's newfangled stuff and I'm kind of an old fangled guy so I look for the dipstick okay and if they don't have one you're going to be looking for a long time.

Well I was as matter-of-fact 800-525-7000. It was a call today. Let's chat and in Indianapolis. How can we help you my friend in regards to credit score is better to pay off the credit card or to carry a small balance and make payments on it. Yeah, you know, it really doesn't matter either way. And for the most part, because here's the reality you know when you dive into the algorithm. The formula that determines your score. What's key is that you have. You know a good payment history. Let's go make up 35%. The largest percentage of your score. So the fact that you're in on time payer every month is really critical in terms of the amount of debt you have the credit usage. That's key because when you get that threshold of util with equal utilization above 30%, both on an individual account so card that has a $10,000 limit. If you owe more than 3000 year above 30% utilization that's gonna start to pull you down and in the aggregate, the total of all your credit accounts revolving looking at the total of the limits for all of them plus the total of all your balances. If that's above 30.

That's gonna start to pull you down but what you described in terms of carrying a small ballot. The balance month-to-month versus paying it off in full.

In either case you're well below that 30% utilization, and there's no reason to be paying the interest even on a small balance because it's just not going to help you.

So the key is to have good credit history over long period of time pay your bills on time.

Keep your credit card balances at or near zero. I would always advocate for zero and that you be doing what you need to do to make sure that you have the very best credit score you can follow that the yes Larry good.

We appreciate your call.

Yes or thanks very much. 800-525-7000. If you have a question, excuse me and you'd like to talk with Rob West today. This is a great time to call.

We had a number of open lines at 800-525-7000 out to Spokane Washington Lille you're thinking of buying something that I got my first grandson and we want to with yeah, I'm kind of gifts it will pay off later. Like a 529 college or trustor stock account where Whitney's 18 or 21 he can't get open it and what are your thoughts for the best way to go yet Lille first, congratulations on that first grandchild. What an exciting season of life. You know, I think the first step is for you to bring just a bit more definition to what it is you. In fact want to be able to give him because you know if you are willing to say you know what we want to make this gift, a gift, it's going to go toward his education.

So were specifically going to save toward college. I would lead you in a different direction that if you said we want to be able to have funds just available to bless him with and give him the choice on how to use it.

Whether it's college or if something else.

Do you feel like you have a good good feeling on between you and your wife what the answer to that question is what we think we just want money available at no.

18 if he goes to college.

21. If not, you okay yeah well and that's important to think through because you know inside that the college savings and I would recommend the 529 you can get better growth because you and I can have the drag of the taxes but it does need to be used for qualified educational expenses, with some exceptions, you could transfer to another grandchild feeding me that you could take it out on a pro rata basis for scholarships and grants. But if you want real discretion over how to use that you don't want to be penalized in any way. If it's used for something other than college than you do in fact want to save outside of it.

Then the next question is what type of account. Leo and a lot of folks will use what's called a custodial account it's in other cases it's called uniform transfer to minor act account or uniform gift to my direct account. The challenge with that is I don't recommend them because you know if you get to that season of life and you know this young man who's now 18 years old reaches the age of majority in his state that becomes his asset and if he's making poor lifestyle choices. He's not ready to handle that kind of money it's all the sudden his and he could use it to buy a sports car if you wanted to. So I'd rather you keep it in an account in your name or jointly held with your wife but separate from your other investment so you know that it's for him and then you have more discretion or control over how that's handled. You mentioned to trust in you know that would be something if you had a trust where you could title in the name of the trust and then you could designate that it be paid out under certain conditions, but if it's just for that account. That might be overkill but I think that's an important consideration to make and then if you do that lets you keep it in in your name.

A joint held account then you know you would just want to invest it in some good high quality. I think probably index funds or mutual funds that did follow the broad indexes so you're just capturing the big moves of the market rather than trying to pick the winners and losers on individual stocks and if because of the amount you know, given that you're just starting out. I probably use one of the Robo advisors like your swab intelligent portfolios or Vanguard has a similar product or betterment, which is one of the newer fin tech companies that does the same thing but I threw a lot at you there.

Do you have any questions on that you know going out 1820 year forum would want to do a mix index fund in the US as well as maybe your you would yell and not specifically Europe you want to have a good international component to the good thing is with both the swab intelligent portfolios, and the man betterment there would be a mix of not only domestic indexes but they'd also have some international exposures. Probably some in the emerging markets there be a mix of large-cap and small-cap. That's the size of the company growth in value and a very small allocation to bonds were talking about a really well diversified mix of investments and that's really one of the main benefits to those types of investments when you're just starting out is with a very small amount of money you're going to get a real good mix of of stocks and bonds across the board.

Haleyville, thank you very much for calling today. You sound like a generous grandpa and we hope you have a dickens of a good time with your first grandchild. Thank you very much.

I know I love have left my grandchildren. I only have three actually had to one on the way and I don't know what dickens will bring keys Rob West, I'm Steve Moore with my thesaurus and my generic will be right back to the head billboard today it's moneywise live, whatever things might be going on in your life that you like talk about. I don't know what that would be maybe buying a car going to college paying off your college loans, saving, giving, generosity, more than wasn't likely. The Bible has something to say about it.

Which means Rob has something to say about it so give us a call right now, open lines at 800-525-7000 Rob. We began today's program talking about saving money.

Greg is with us now from Missouri and you you bought quite a system tells what you bought for your home. Greg and how well it's working hi Robin, I bought geothermal system for my home.

It was about $25,000 and a little bit more than what your normal furnace system would cost that we probably could not bow down to eight units heating units and that we talk to Jennifer 18 or 19,000 we got a little bit more about federal discount 26% of the editing, but again the last year which we get and and I thought it was a win-win. And I didn't write research a lot.

I just felt like ants got a little bit more open over the years will save money. They talk to us about stuff like that but it's a fun thing. What heat all that heat, now they're going about 93, 94° to research it more and also another principle of the Bible I should listen to my wife about that.

I cannot she's she kinda didn't want boy going do, but I kept pushing And now were not happy with it really will happen doesn't like talk when he gets really cold out 05 below zero type stuff. So I made some mistakes not researching up not not follow along with my wife's and in agreement with her.

You know and stuff like that so I just want to know. You know that's what McDonald really like that. It's a big investment.

Yes, you want to be comfortable email and stuff like that, that's right.

Well, I appreciate you referencing that great couple thoughts. Number one is you know we've all been there. Whether it's husband, not taking his wife's counsel or the opposite in a week. The Lord gives us our spouse suffer a reason to complete as not to frustrate us and I think we need to always be seeking each other's counsel, especially with a large purchase and inside.

I certainly appreciate that your reflections on that and also just because we get a discount or a tax break on something and a lot of folks were doing this with cars that they were more expensive than they needed back when you get a tax break either from electric vehicle or for a larger vehicle. Years ago when that was being offered. They found out that the upkeep and the maintenance and so forth was no more than they bargained for. So we just need to be careful and always evaluating these decisions are simple Lotta great useful information out there where we can read tons of reviews on things before we proceed with a major purchase and that's always good to serve us well yeah Jim Henry does research for us quickly away then on exactly what you're saying here. He said you know these geothermal systems really are an upscale heat pump and in general there are undesirable because when the weather gets cold.

They pump out cold, colder air then the regular heating system and so you have a tendency to just always feel a chilly and even 90° air feels cool on the skin. Surprisingly, so yeah, I think. Lesson learned. Right.

We've all been there. And now you've shared this wise counsel with the rest of her audience so everybody can benefit from what you're sharing break. We do appreciate the call.

Thank you very much guess what, you will have to follow things like this geothermal energy and effort for heating our houses because more than likely they'll get more efficient and better.

Along the way but that could take a few years before that technology really catches up to the way we live a Greg again thanks for your call.

Spokane, Washington hi Julie, how can we help, good afternoon. Thanks for taking my call where my mom is 80 and starting with dementia and she has everything is paid off, and she already got rid of all of her assets so what she has about $400,000 in stocks and she takes about $1300 a month to live off plus her Social Security and were just trying to see if he can, we can find a safer way where she can still pull money out without having it in stocks so that she still has enough money to live off the yeah so 100% of the 400,000. Julie is in the stock portfolio correct. From what I can find so far yeah and who's managing this money who's making the decisions were seen as far as she is with with a investment company but I I'm really not fun at all.

So I want come in behind an investment company that can 80 in a right direction. Yeah, I think you'd be wise to get a second opinion here is this is your you know providing more influence and oversight of what's happening here. The good news is that in with a $400,000 portfolio. You know the 1300 a month that she's pulling should be very doable in a we would typically use 4% where if it's invested properly and certainly not hundred percent in stocks, but with a conservative income base portfolio where you have a the major portion in fixed income type investments with a smaller portion in stocks that could provide some growth but not where you're taking the risk of a full hundred percent of your stock portfolio. You should be able to pull out 4% a year, and over the years. Maintain that $400,000 balance so that it lasts the rest of her life and there's something to give to ministry, charity or her heirs of the key would be to make sure that she's not taking unnecessary risk in doing that is the last thing you want is to have 100%.

The stock market. We had a recession a couple years down the road markets down 35%. All of a sudden you open the other balance. It's 100 and 3000 $40,000 lower.

You know, after a 30 day period and certainly nobody wants that just because it's not necessary. So I think it be time well spent to get some second opinions. I'd encourage you to: connect with two or three certified kingdom advisors there and in Spokane and just have them talk there.

What type of portfolio they would recommend somebody in her situation. Dementia living on this this portfolio and it being a critical part of maintaining her expenses. You can find them. CK is there in your area when you go to moneywise live.org just click find a sinking feeling. Thanks thanks very much for that and we appreciate listening today 800 557 nice to have you out there listening today.

We appreciate that what your driving home and doing a load of dishes or whatever it is to have us there on background 800-525-7000 Rob, were you able to check the the app this weekend. I know that sometimes you you check it out as you might be floating around, there is little bit of a community right to moneywise live in the community. There absolutely is Steve if you haven't downloaded the new moneywise app. I'd encourage you to do that. We just released version 2.0 in the last 30 days and it's got some great new features you'll find it in your app store. The Apple App Store the Google play store to search for moneywise biblical finance yeah I jump into the community.

In fact, I'll be there tonight after my son's basketball game and looking for your questions. We had recent questions of folks asking about umbrella insurance. I answered one over the weekend about investments for teens. We recently dealt with gift card scam. So when you download the app, just click on community once you create an account and you can post your questions. I'll be stopping by to answer many of those tonight and then now are moneywise coaches are in and out of there as well so I just downloaded today and you can jump into the moneywise app community that when you allegedly show up there out of the ether.

Out of the five Rob West shows up. How do people know it's really you. Maybe at some some scofflaw representing you, but it's not and you could be made two ways.

First is you'll see my name, middle say Rob West. The other is I have a special little moneywise logo by my name and not everybody can get one of those. In fact, I'm not sure if we've given you yet one of those Steve, I'll get on. I'd appreciate that and I choose my own color for well I don't listen to Christopher okay there you go check it out. Rob might be there tonight.

Fact Rhapsody will be there tonight after his son's basketball game probably have a hot dog.

Maybe some fries set over to the side, but you'll get his best advice, Cologne, Illinois hi Jack, thanks for holding my friend how can we help you got a question about taking some money out. I retired about three years ago and I've got through all another about six years funded and had some inheritance which came in nice but that and that's in the CDs and a little bit in some CD type annuities, which I'm essentially using as a CD so not a big deal there, but what my question was so for money start in about 6 to 7 baby eight years. How is I was thinking of the idea. I've got both IRAs and nonqualified mutual funds that I was thinking out of the nonqualified take those dividends dividend and capital gains distribution: those out. Setting those aside and it's kind of a way to I guess reduce risk. So you're not stuck. If you're in a down market. At that time. Just wondering what your thoughts on that might be.

Either he was thinking about to do so. Very good, since you said you you are retired, what is your age 58 and you're not planning on going back to work. Is that right that's right. And are you living off that I really am sort. Essentially, I do have some pension and my wife still working right now and then I is in starting figured about 33,000 a year and that I index that up for inflation every year so that one increase so right in our 34 – some like that and that's what you pulling out the supplementary pension yeah and just kinda spending is needed.

If we don't yet. I'm not much that's okay what have land in those portfolios roughly almost 2 million total rights and 1% of that roughly 2 and I am back would you say is is in stocks about a million Lawrence. I guess that would be my you know my main question is if three quarters of that $2 million in cash and you're only pulling out 34,000 a year you are you taking unnecessary risk because you know me you could you could get away with: essentially 2% a year and after taxes are paid.

You're going to have your 34,000 you'll have a little more than that and you know you're taking you know the risk of the market on with three quarters of the portfolio and you know that's been great in this bull market, but you forget what portion is coming in off of the dividends and distributions of the taxable portion. Let's look at the whole thing and say are we being too aggressive and if we were to get into, you know, I'm a department not a depression but a recession couple years from now, you know, cyclically speaking out the note. I can I'm saying that's can happen but at some point we will because the markets tend to roll over with the economy and in the outlets in the market was down 35%. Is that really where you want to be and is there reason to be.

Given how much you been able to build up over time and how little you need to support your lifestyle. So I would just say perhaps take a broader view of the whole thing and say what would it look like for me to get a lot more conservative. So I you know would only have perhaps 30%.

At the risk of the market that could provide the growth component to it, but I'm taking you a much more conservative posture with the lion share of this give me your thoughts on that. Yeah kind of thought about that and then I get a little nervous about no cover question okay where you put it that you can get some more than less than 1%, and obviously you'd have to do now.

Talk to it. Some investment professionals about that. I mean if we expect inflation to be in a headed up the tips would be an option. You can look at some government securities, you could look at preferred stocks, you could look at it know appropriately diversified bond portfolio mean there there are options for you to look at. I think you know for that portion.

But the whole idea would be why don't we reduce the risk here. There's not a need to take unnecessary risk at this point I think the other option is always just looking at giving opportunities especially when you have a well, it's always a good idea to look at giving opportunities but in particular with those taxable accounts is your generating profits rather than realizing those. I like the idea of making gift of ministry or your church or charity directly out of those portfolios getting a tax deduction blessing that ministry and know saving a bundle on taxes so that would be something else I'd be looking at actively now, so I just challenge it up to think about that and if you you want to consider some other advisors perhaps do that just to get some other ideas as to what could be done to reduce the overall risk but still get an appropriate rate of return is you are a steward of God's money, in a really substantial portfolio. We appreciate your call today Jack, thank you very very much for that. But we come back after a break will say hi to Belinda. Say hi to Linda in Orlando Kathy in Indiana and Jean in Bradenton, Florida before we get there Rob I'm not sure if you knew this. If it was marked in your calendar or not, but today Sir is national mom-and-pop business owners today and I'm not sure if there are many mom-and-pop businesses out there today they were when I was a boy. Quite frankly, and they were really cool, but they seem to be disappearing well there still some great ones and I would say absolutely be looking to frequent those in your neck of the woods, says exactly and might my tip of the head marches market Through my teenage years. This is money lifeline. It's a great day on the radio for welfare 805 five 7000 with the pianist with you our lines are for right now let's quickly go to Orlando hi Linda, thanks for holding. How can we help yes ma'am my call.

I want about Robin. I have a couple thousand dollars that I would like, and I'm wondering if that point you know it's it's gotten a lot of notoriety lately just because it's been in the news initially around it being a really popular platform because of its fee free approach you know there's no account minimum days doctrine cause third zero.

The option trades are at zero and so you know it's obviously something that's gotten a lot of attention by millennial's, there would be a monthly fee but generally speaking, the ratings have been good not great yet they've gotten a lot of slack over there. What happened with the couple of things in particular one was noted during the steep market declines in February and early March last year at the beginning of the pandemic. They had extensive outages that affected users ability to access their platform.

As a result, they invested substantially income other backend system to try to prevent that because it was a kind of an outcry from folks and then they got a lot of fat press and the end of January around your state is restricting access to certain securities that were involved in the Reddit forum known as the Wall Street bats related to game stop and a few of the others, but that the bottom line is it's it's fine. You know they they don't offer a whole lot in terms of the there's no "that are streaming in real time.

They offer very little research and then them together some questions as to how the trades get routed to generate payment for the order flow not always the best price.

So I guess the thing I would ask to you. Linda is what is it you're trying to accomplish and are you looking to buy individual stocks or mutual funds are you what type of investment portfolio you try to build this point I would like like that quote we had that well and that trying to find a way to do that. I'm not enough to start a business that no thinking okay what how much are we talking roughly to go muncher maybe 3000 that's not a lot that's okay.

And do you have a retirement account.

Linda from this okay so you contributing at work. Perhaps, yet okay great and you have an emergency fund, separate from this 3000 you're looking to deploy them in stocks. Yeah, okay, great.

And as long as you don't have any in a high-interest consumer debt. I think this is a good idea. I would tend to recommend, especially as you're just getting started that you take up a broader approach to your investment and be really well diversified, as opposed to trying to pick individual stocks lot of folks using Robin Hood are trying to buy individual stocks and pick winners and losers.

And that's just typically a losing proposition that you know with the reviews that will Robin Hood is gotten as of late. I probably encourage you to go in the direction of that. I advise one of the previous callers today and that is either Schwab intelligent portfolios or betterment. This is going to be a Robo advisor type approach. Were you to answer a long list of questions and then they would build for you very low cost very well diversified portfolio of what are called exchange traded funds were. You have a broad investment portfolio focused on the stock market indexes, both domestic and international, large and small. You have probably a small allocation to bonds and that overall portfolio would then mirror the overall growth of the market, but you wouldn't get stuck in a position where one company had a bad quarter, you know, became out-of-favor, you could lose a lot of money and I think that systematic approach on the low cost basis would be something that would achieve the objectives I'm hearing you describe. So those two that I mentioned get very good reviews by the independent third parties out there and they are betterment, which is more of a fin tech and app-based approach. Even though they have a great website and the other would be a more traditional investment broker is Charles Schwab and it's called the Schwab intelligent portfolios so I recommend you check those out before you do anything and fin tech rabbits financial and technology that you have financial technology have been a huge new kind a growing segment of the finance universe based around leveraging technology in both banking investments saving money. A lot of it is app-based or web-based. You thought I was going to say something about it being fish related, but I wouldn't do that because I have I have a higher level of comedic reference that no work is involved in this. I hope Westfield Indiana Kathy. How can we help you. Question 529 account for our boys.

We been last one did very well in school got a lot of scholarship in the end, when in the pleat therapy didn't go to college. We had this account now is about $50,000 and I don't see them using your brother going 25, 30 years old and it standing there so I don't think that she take the penalty to cash it out or what to do with this money and Kathy.

It sounds like there's no loans out there correct that is correct okay yeah because one of the options under the secure act was allowing families to take tax-free 529 distributions to play to repay qualified education loans.

That's not a factor yet so I got a couple of options. One is just to take that nonqualified withdrawal which your contributions will be taxed because they were made with after-tax dollars, but any gains made in the account will be subject to income tax and a 10% penalty. The only other option to consider.

Other than that nonqualified withdrawal would just be to hang onto it and at some point transferred to another beneficiary. When Lord willing. Some grandchildren come along someday or if you decided you want to go back to school when kids have some sort of advanced degree, perhaps, but other than that you're going to Juergen one stick that nonqualified withdrawal and then redeploy those according to your overall goals and objectives. My my question is if we did catch that out. Would it be better to put that towards our retirement or on the only other thing that we have is our mortgage payment so it got better option. There so do you feel like Kathy that you're on track with retirement at this point we have about 10 more years, 10 to 15 years to work and wearing a a fairly good play and like I said the only thing that Leo is on her mortgage. There's about 100,000 left. Now that's the only thing that we have that down you are looking at, and you said about 10 years till retirement on your current schedule of the mortgage pay back when you are planning if you just continue doing what you're doing to have that paid off and help clean about seven years okay great yeah I think the key is to try to get to a place where as you enter retirement or shortly before that you have that mortgage paid off so you keep your lifestyle expenses as low as possible so I could go either direction. I kinda like the idea. If you do feel like you're on track with retirement you're putting away enough you done some planning and by the way, if you have it.

That would be well worth your time and financial planning fee to an investment professional or financial planning professional not to necessary managing money, but just do a copperheads of retirement plan to say yeah based on your lifestyle and what you're trying to accomplish here.

In fact, right on target.

But if you determine that you are then I'd say going ahead and prepaying that mortgage accelerating that payoff so that you could recoup that mortgage payment once it's gone and redirect that into additional savings are giving would be a great idea.

So you could either just go Fortin and make that lump sum payment to the house or we do that retirement planning to confirm that you are in fact heading in the right direction based on your overall goals.

Kathy thank you very much for that. We appreciate it quickly. Let's go to Bradenton, Florida hi Jean, your last caller for the day. I think how can we help you last year. I told my home and I did up by hand and a retirement community and I had 30,000 left from man and like to know where would be the best thing to put Pat. I do have small IRA of about 35,000 and half of that event, stocks, and so I need to be able to draw from some of the 30,000 where would be the best place to put that out when you say Jean you'd like to build a draw from it. In what timeframe do you think you might need access this and is this really your emergency reserve, but I have about 5000 emergency reserve okay and what are your expenses every month. I have the monthly fee here and so I can cover that with my income.

Okay, so I what is that amount in total.

Would you guess on a monthly basis all your expenses, my expenses, I would say thousand dollars okay yeah I mean, I'd love for you to have, you know, at least a years worth of expenses. Liquid and available. That means probably a high-yield savings account and you know and if you're comfortable doing business online. I probably look to either outline a banker Marcus or capital one 360 get linked to your checking account. You only earn about 1/2 a percentage point right now, but that will increase over time. You are you looking though with what's left over. Let's say that's you know.

18,000 beyond the 12,000 and emergency savings are you looking to take some risk to try to grow that like in the stock market or what did you have in mind. I don't think stock market I'm 79 so I do not looking to do that. In fact, I've been advised to even the half of my 35,000 in stock that maybe I don't need to do that I would tend to agree with that. So I think at this point which are probably looking for is putting it all in a high-yield savings and then waiting until interest rates begin to move up at that point probably buy some CDs six-month 12 month 18 month you could flatter them I wouldn't do that now, though, because rates are so low, so I start with that high-yield savings keep it safe and earn a little thank you Jean for that moneywise live as a partnership between Moody radio and moneywise medium my thanks to Aaron and then Jim there technical expertise today. Join us again tomorrow