Vacation Tips for 2021

This is Doug Hastings, VP of Moody radio and were thankful for support from our listeners, and businesses like United faith mortgage.

My best friend is blessed with three kids in a big house all the kids have their own rooms, but recently life in a bagel house is been different.

In an effort to solve kid boredom. My friend, but when those massive blue tarps and created a full room tent in the spare bedroom. They put each of the kids mattresses under the tent in the shape of a T and every night for now, five weeks the kids have slept with their heads, feet apart and set of rooms apart, it's Ryan from United faith mortgage and when I see a home. I can help it see interest rates, escrows, and trying to help listeners pay the least amount possible. But for me that story was a needed reminder that it doesn't matter whether our homes are big or small it only matters whether willing to enjoy the little things that God gave us today like a tarp tent. If you happen to be looking for a new place to put up a tarp of your own. We are United faith mortgage United faith mortgage is a DBA of United mortgage Corp. 25 Millville Park Rd., Melville, NY. Licensed mortgage banker for licensing information, go to an MLS consumer access.org corporate MLS number 1330. Equal housing lender not licensed in Alaska, Hawaii, Georgia, Massachusetts, North Dakota, South Dakota and Utah. And summer is just around the corner and that means folks are starting to plan for summer vacation after you with restrictions 20, 21, could see a certain people hitting the road by Rob West, you know, some areas remain in shutdown mode, but others are opening up hoping for a better season than last year. So first some tips for planning your warm weather get away.

We take your calls at 800-525-7000. That's 800-525-7000. This is moneywise live where God's principles intersect with your so no question that the availability of vaccines is using confidence in getting out of the house, but that doesn't mean that masks are a thing of the past there still required on planes, buses, trains, taxis and ridesharing services at a minimum, many states and establishments are expected to maintain mask requirements through the summer as well and some even into next year. If you're traveling by car this summer. You can't assume that everything will be open along the way to your destination. So it's highly advisable to plan your hotel restaurant and service station stop.

So you know where you can stay overnight, grab a meal and gas up when you need to also if you're renting a car, ask what steps the rental company takes to clean the vehicle. Ideally, the company only offers cars that have been thoroughly wipe down with the disinfectant and sanitation procedure that includes doorhandle steering wheel, shift lever and control panel. You should also bring your own disinfectant wipes and keep them handy. Now a little more about hotels.

Of course, call ahead to make sure your preferred hotel is open but also ask what steps they are taking for cold things like reducing capacity, social distancing, and requiring staff and guests to wear masks and if the hotel has a restaurant that you might want to use is it open. If not, ask about other restaurants within a convenient distance that air travel is still highly affected by covert with many restrictions you want to ask your airline about in-flight amenities like food and beverage services which could be limited or not available at all.

Also, many airlines still limit flight capacities and maintain social distancing by not filling middle seats. Meanwhile, the transportation security administration is making an exception to its 3.4 ounce liquid container rule. TSA will allow you to have one oversized liquid hand sanitizer container up to 12 ounces per passenger, which you can keep in your carry-on bag so that's a change of course masks are still required in airports and on planes now. A note about international air travel. In case you have family or friends flying in from overseas. All passengers coming to the US even US citizens must have a negative COBIT 19 test results before boarding a flight to the US travelers who don't provide this to their airline will be denied boarding but maybe your vacation plans include a cruise and industry that's been just devastated by COBIT. The Centers for Disease Control has lifted its ban on cruises, but many cruise lines are voluntarily continuing their suspension of sailing operations in the months ahead. So if you're considering a cruise this summer. Check with the cruise line or a travel agent about availability and restrictions of there's no question that taking a vacation this summer will require a lot more planning than you're probably used to.

Also, you should know that the CDC is still urging us to delay traveling and warning that it will increase your chances of contracting and spreading COBIT 19 that many state and local governments still have travel restrictions. These may include testing and quarantine requirements.

Mame, for example, requires you to show a negative COBIT 19 test result or self quarantine for 10 days, so check with the appropriate health departments along your way. You have to be flexible and prepared for changes before and during your trip and for COBIT vaccines.

If you're eligible. Consider being vaccinated before your trip and waiting two weeks after your second dose before hitting the road that allows your body to build protection from the virus and even after being vaccinated understand that you'll still have to follow all travel requirements word about testing the CDC recommends taking a COBIT 19 test no more than three days before your trip. Take a copy of your negative test results with you during your trip could be very handy and cancel all plans. Of course if you test positive so a lot of requirements a lot of restrictions still in place for your vacation this summer. All right, I'll be taking your calls on any financial topic. Next, the number 800-525-7000.

This is moneywise live stay with us back to moneywise live on Rob West postings verbally along with us today as we pack God's truths and apply them to your fine all the decisions you're making on a daily basis. We want to honor God. As a steward of his resources and make the very best decision we can. Recognizing that God owns it all. Money is a tool and we are charged with the management of the creators resources we want to be found faithful and that you need some help from a professional advisor. Whether that's for financial planning, investments, estate planning, tax and accounting, whatever it might be if you'd like to know that that professional can offer advice that aligns with your values and priorities for Christian, we encourage you to look for someone that holds the certified kingdom advisor designation and you can find a CK a in your area by heading over to moneywise live.org and just click find CK.

All right, it's time to take your calls today.

We do have a few lines open. Here's the number 800-525-7000 800-525-7000 we begin today in Miami, Florida Isaac, you're on the program.

Go ahead wrong yes or is it true that Steve retired. It is true yes is sad is that is. I miss my compadre who is normally by my side each day, but excited for this new season of his life as he pursues what God has for him next. But yes that is true. All of them because he liked told them a bad, bad joke, right now, I know no dad jokes involved.

It was the fact that he had spent more than 30 years behind a microphone and he was ready to pursue some other interests but were grateful for him and he'll be back periodically offering some of his analysis and humor along the way so he's not going anywhere entirely. He just will be here as ghost every day but Isaac what your question is how can I help you sir yet so I have this is like a part because I had asked the question before and so my question today would be like, what is the difference in risk right between her reckless Sprint and Leica risk that it risky, but can actually have some benefit. Yeah well it's a great question because the other something called risk reward. There's a risk reward ratio and there's a concept of risk and reward that really goes hand-in-hand with investing in. We gotta understand what it means to assume a certain level of risk in exchange for a commensurate return and you know that's one of the ideas when we invest is that as we expect more in the way of potential profit. The potential risk of that investment goes up with that and so were constantly balancing risk and reward. As we think about investing God's money and we need to make sure that the risk reward ratio is appropriate for our age and stage of life and expectations. Because we certainly wouldn't want to take on an unnecessary level of risk to achieve a return beyond potential even what we need and so we need to start with what is God entrusted to us what lifestyle his.

He called us to water our goals and objectives that are God ordained and then as we seek to invest God's money.

What is that appropriate amount of risk that we should take and what expectation might we have for the return that would follow when it comes to a healthy amount of risk. I think we talk often about long-term investments being those investments that would be 10 years or greater, and I will often say that the very best place for the starting place for your long-term investment should be in a properly diversified stock and bond portfolio and, as you build that portfolio or as a financial professional builds that portfolio they look at a various classes of possible investments and as they look at those investment options. They would move up and down in the risk return spectrum so the progression is typically short-term debt to long-term debt bonds, property, high-yield debt, and then equities or stocks and as you look at that progression you want to build a portfolio that has varying levels of risk associated with it, and recognize that they'll be different levels of return that come with that but that would be inappropriate or healthy amount of risk as long as the portfolios built with your goals and objectives in mind and is properly diversified. I would say reckless amount of risk is where you begin to get into speculation. Isaac where you're no longer taking a long-term perspective with a properly built portfolio with a healthy amount of risk you're moving beyond that, trying to speculate as to the moves in a show on a short-term basis of an underlying asset class so that could be no highflying stock that you're trying to buy it quickly see again on so you can jump out.

It might be something in the precious metals and might be commodities me could be any number of asset classes and I think when you begin to get into that speculation, where you're violating the biblical principles we see about what appropriate investing looks like with a long time horizon and all the other things that I mentioned that's where I think it begins to become unhealthy unless you're a professional trader doing that you know full time and you have the proper training and expertise so hopefully that's helpful to you. I think the key is to make sure that as you begin investing that you're knowledgeable that your bill you do some reading on the topic. You certainly explore the Scriptures and I think it's always good to consider having a professional walking alongside with you. We appreciate your call today. Next up is Nick and West Lafayette, Indiana, Nicorette about long-term care insurance. I have a lot there and there and though there wondering all the data for each one… Dollars bond and I would 30 years care whether it's nursing home patient and I don't know if that is something that it work pursuing or it mattered that that money. Mutual bond or that that is. What year yeah you know of this product. If it's something that you buy with a great deal of you research to make sure you get the policy that's right for you and it has to fit into your budget because if you can't keep up the premiums long-term. And you gotta drop it. It's gonna be of no value to you and you know the data says that this is going to be for most folks the very most expensive thing they'll deal with in this season of life.

According to the Alzheimer's Association. The estimated cost for end-of-life care in 2019 was between around 230,000 and 367,000 and innermost health and disability insurances don't cover long-term care but that's where long-term care insurance does. So I think when you can get an agent who's independent to nose the various players that are committed to the space who can help you price out and find the policy that's right for you. It can really offset this major potential burden that the majority of Americans will need for somewhere between 18 months and three years and it's gonna cover things like nursing home care, assisted living facilities, adult day care even in home care or home modification so that's why you know they're not all created equal, but it can be a tremendous benefit to having something like that in place. I think you're talking about the right age I would say between 55 and 65 is the time to begin to shop it and yeah I think as you find that right agent who can go out and price it for you. Getting multiple bids from various carriers. That is the right approach so that you know if you checked all those boxes, then I think this is a good thing to have. And again it's just going to alleviate that risk that comes in this season of life that can be really burdensome and erode your assets in a hurry this up help Nick, thank you. Okay appreciate your call sir and we look forward to talking you again real soon. Well organic continue to take your call center on the program today and we got a lot more to cover. We've already covered some ground but will certainly get too many more of your questions. Whether it's dad's giving investments, retirements, how to say anything is fair game today 800 525 7000s, and I recall you have several lines open 800-525-7000 exhibition along with us today will take a brief break and back back to moneywise live for God's word intersects with your financial decisions.

Thanks.

Along with us today right back to the phones we go central PA leave X were going today. Karen part bearing meeting for either a partnership or something plain. I'm currently on an playback Montclair and with unclear here that electrician, plumber, and he and I'm looking at either entering a partnership or finding nothing played on GQ handyman work with. That definitely a market for that inner area and make my first question in regards to partner Quickly Here at Kind of Negative Think about Partnership and Tell Where We're Leaning toward the Alpine Claimant with Subcontracting Wetness Individually or in Partnership You Have Any Thoughts on That. Yeah, I Do a Business Partnership Obviously Is a Cheered Business Venture between Two Parties. It Can Be Something As Informal As Just an Agreement Which You Would Always Want to Have a Written Contract or It Can Be Certainly More Formal Than That the Benefits Are, You Know, Financing Expertise between the Two Individuals. Division of Labor, but There Clearly Are Some Disadvantage. I Think Disadvantages and I Think You Know As a Believer You Want to Make Sure You're Going into It with Somebody Whose Like-Minded, You Know We Always Want to Have a Couple of Things in Place Whenever Were Considering a Partnership Number One Is You've Got to Have the Exit Plan Defined on the Front End Because Seo to Become One in Marriage, but That Doesn't Apply to a Business Partnership and so I Think to Protect the Relationship and Even Protect Yourself Financially. You Need to Go into It Saying Okay on the Front and Were Going to Create an off Ramp. So If This Doesn't Work, We Know What That Looks like Including How Are We Gonna Value the Business When That Time Comes. If It Does, so There's Not Any Question at That Moment As to Know How Do We Unwind This. How Does One Person Exit If They Decide to Pursue Other Endeavors. They Just Wanted You to Go into Business for Themselves. Go Having That Valuation At Least the Process for Evaluation Determined in Advance and Defining the off Ramps I Think Is Critical Think the Second Piece That Is Just Essential Is When It Comes to a Business Partnership Being Like-Minded in Terms of Values and Really Having Somebody That You Know for Believer, I Would Say Yeah I Wouldn't Personally Go into a Partnership with Somebody Who Doesn't Know Christ and Having That Values Match Is Really Key Because You Have Differences of Opinion in a Work Ethic Treatment of Vendors and Customers but Really the Underlying Values Have To Be Right There. And of Course You Know Each Party Needs to Go into That with Their Eyes Wide Open. But If You Feel like Those Two Pieces Are in Place or Could Be in Place Prior to It. I Wouldn't Say It's You Know an Automatic Disqualifier. I Think You Know for the Two of You to Pray and Think through It and If You Just Can't Get a Piece about It Then. I Think He Goes Alone and Perhaps They Look for Ways to Share Business Back and Forth and You Know If There Both.

You Know, in the Same Field. There Could Be Some Synergies and Maybe over Time It Will Become Obvious That They Need to Join Forces. But If You Have Some Reservations on That. Perhaps You Don't Start That Way Does That Make Sense Though Question by Regard Telling Interact on That Part Bearing Well What We Are Not Sure about That Right How Much We Need to Charter and Make on Nate and Linolenic Now Keen on Hanging out with Not Sure like Life, to Consider for How Much to Believe Email Him Right Now. Unique and at Last Year He Wrote around 1009 That Went with It.

Over Time, What You Were Looking to Gain Area Ballpark on That Lee by a Leader Is Not Sure What All Could Take into Consideration Whenever, Where That It Does Absolutely Said You All Have a Written Budget That You Use on a Monthly Basis Only. General Okay and Do You Find That You're Able to Live within Your Means Pretty Consistently. Or Have You Been Accruing Any Debt. Now We We Are Able to Limit Internet Okay Well I Think the Key for You All Is You As You Begin to Look at This You You Want to Make Sure That You Understand It out to Your Point Exactly What It's Going to Take That to Find Your Family on a Monthly Basis. As You Look at Your Gross Income and You Would Subtract Your Giving Plus Your Taxes Plus Your Debt and You Know That's Going to Be the Maximum Available to Spend on Living Expenses Know and so Often People Will You Don't Get That Out Of Line.

There's Actually a Formula That I Call the Minimum Income Needed Formula That I Can Share with You That I Think Will Really Help You Back into This Number, and Perhaps That Would Give You a Starting Point. So Once You Do That. Stay on the Line to Take a Quick Break and We Come Back I'll Walk You through It and I Think That'll Give You the Number That You're Looking for so That You Can Make Sure You Feel like You Guys Can Achieve That and Not Put Yourself in a Position to Be under One so I Will Tackle That Just around the Corner. This Is Moneywise Live Rob West Paused for a Brief Break Back with More of Your Calls Red Plug Back to Moneywise Live on Rob Last Year José Survey along with Us Today Just before the Break We Were Talking to Lee and Central Pennsylvania Hadley and Her Husband Are Considering a Move into a New Small Business. Your Husband Is an Electrician and Number Working for Small Employer and Thinking about Starting His Own Business Doing Remodeling Perhaps on His Own or Going into Partnership with a Friend Just before the Break We Said for You Would Even Consider a Partnership at the Very Least, You Need to Have a Values and a Faith Match, and Secondly, You Always Want to Have an off Ramp Defined in Advance. This Is Not a Marriage. It's a Business Partnership.

So How Does One Person Exit the Business and Really What's Critical to That Is, How Are You Going to Value the Business When That Time Comes, You Need to Decide That on the Front and At Least Second Question Was How Much Do We Really Need to Make so That We Know That We Have Enough to Pay Her Bills Because of the Gross Amount You're Taking in Is Not Going to Be Enough to Cover Everything.

So How Do You Actually Back into That and There's a Formula That Actually Tells You the Minimum Income Needed to Cover Everything That You Have. Recognizing This Really Five Things You Can Do with Money. There's Money You Give Others the Money to Pay Your Taxes with Money for Living Expenses. Money for Debt and Then the Rest Is Flowing through to Savings That Leave You Have a Pen and Paper Handy Okay so Here's What You Want to Do This Is the Formula so You Are Right, Living Expenses Plus Debt, and I'm Going to Explain These in a Minute and Then Put a Line under That Because You're Going to Divide That by One Minus Now Make a Parentheses and You Do Your Giving Percentage Plus Your Effective Tax Rate in the near to Close the Parentheses. So on the Top, Living Expenses Plus Debt on the Bottom One Minus (Giving Percentage Plus Effective Tax Rate Close Percentage Only Walk You through This. So What Did You Say Your Living Expenses Are When You Look at What It Takes to Fund Your Family Every Month When You We Are Right around 2590 Know That That's Not What Went Wrong 1500 Okay, All Right, but You Are Saying You Are Making about 53,000 Here Right Now Is a Right Thinking, One That Would Likely Thing That You're Able to Put Some Money Away Every Month on You Know I like We Haven't Been Very Consistent and Not by It We Were Enough to Pay More Attention to Okay Will Let Let's Say It's a 2000 a Month to Surround Numbers Multiply That by 12 Sets 24,000 and Living Expenses and Then You Would Take the Total of Your Dad Said You Know What Your Debt Payments Are Roughly Each Month and Mortgage Right Okay Are after out Okay Yeah and I Would Put That Actually in with Your Living Expenses. I Would Be Looking for Additional like Credit Card Payments Things like That. So If You Had Some Debt, You Would Add That to. It's a Let's Say You Are Spending 300 a Month You'd Add Your 3600 of That so That the 24, $27,600 the Year in a Divided by One Minus Your Giving Percentage in Your Effective Tax Rate. So Let's See Your Giving 10% in Your Effective Tax Rate Is Essentially Yelled. The Total Tax Burden Divided by Your Income. So Let's Say Your Effective Tax Rate What You Actually Paid Last Year.

Let's It's 22%. So One -32% Would Give You Essentially What You Need, Which Would Be .68 When You Divide That out You Take Your $27,600, Which Is What You Need. Each Year, and Then You Divide That by One Minus Your Effective Tax Rate in Your Giving Percentage or .68 That Would Say Okay I Need 40,588 in Order to Get the 27,600 That I Need to Fund My Lifestyle and so It's Really Just a Matter of You Guys Plugging in Those Numbers and Figuring out Okay. We Need This Gross Amount Because That's Going to Result in Us Being Able to Fund Her Living Expenses.

Take Care Of Her Dad Continue to Do Our Giving and Cover Our Effective Tax Rate.

Does That Make Sense so You Can Just Got to Work with Dad in and Plug in All Those Numbers.

The Two of You and Kinda See How That Shakes out but Make This a Matter of Prayer Leaves You Guys Think about This and Don't Go to Quickly Make Sure You Have the Right Reserves before You Step out into Your Own Business If You Were to Delay It Because You Feel like You Don't Have Enough in the Way of Emergency Reserves. I Don't Think That's a Bad Thing Because It Can Often Take Longer Than You Expect to Get the New Business up and Running but Keep Us Posted along the Way. We Appreciate Your Call Today, Very, Very Much. Let's Head Now to Stuart Florida. Craig's up Next to Red Drop Not Call Them. I Did Know Centered around Financial Product, Question That Right Now May Not Agree If I Just Lost My Younger Brother on Expectantly. He Was 41 and I Just like God Is Right Now, Rewind Roughly 18 Years, and I Nearly Lost My Life in a Violent Crime and When I Woke up and You. I Basically Had. I Think It Was an Angel of the Lord at the Foot of My Better Orders Jesus Install Wasn't Expected to Live. So I Know That I'm Here for Some Sort of Reasoning I Haven't Figured out What That Is. I'm a Visual Artist and I Move Back to Hawaii Shortly after 9/11 and Did Okay Back to Florida Violent Crime Card and I Nearly Lost My Life.

No, My, My (Though It Then That I Could Somehow Use My My Neck. I've Given Me That Somehow Share with the World and in Them and Make the World a Better Place. But I Really Feel like 18 Years of My Life. I Just Been Almost in a Holding Pattern. I Haven't Really Gotten Any Clear Direction on What It Is That God Wants Me to Do and with My Brother Recently Been Even More Difficult to Move Forward. But I Know Just Because You Don't See God Working a Life That Means Not Working. My Question to You What You Do When You When You Feel like God Is Far Away and and How Do You When You Feel like Nothing. Taking Quite Well Craig, I Appreciate Your Call Today and Feel. One Thing We Know This Truth Is God Is As near to the Brokenhearted and Clearly You Are in a Difficult Season Right Now and so First Thing I Want to Do Is Ask Her Moneywise Live Community Be Praying for You. I'll Certainly Do That before We Conclude Here Today. You Know in a Season like This, We Want to Run to the Father and and Learn What It Means to Abide.

I Think We Got a Start by Going Back to His Word, Assuming You Have Artie Given Your Life to Christ and If You Haven't, That's the Beginning Point Surrendering Your Life to the Lord Asking Him to Come in and Be Preeminent to Be Your Savior to Redeem You from Your Sins to Send the Holy Spirit to Indwell You and to Accept His Free Gift of Eternal Life Not Based on Your Merits, but Based on the Shed Blood of Jesus on the Cross.

That's the Beginning Point We Give Our Lives to Christ and Then from That Point Forward. It Doesn't Mean That Our Life Everything Is Going Work out Perfectly. We Know That Were in a Fallen World, and until Jesus Returns to Bring Us Home. There's Going to Be a Difficulty Here and so What We Need to Do Is Set Abide with the Father We Need to Stay in the Scriptures We Need to Be in a Bible Believing Church around Community That Can Encourage Us and Walk Alongside Us and Leave the Rest to Him and Know That His Promises Are True and Real and He Will Never Leave You Understand Though I Were to Pray Together during This Break and Folks That Were Gonna Pause from Back to Moneywise Live's Ledger along with Us Today Would You like to Connect with One of Her Moneywise Coaches. We've Got Trained Volunteer Coaches That Are Ready to Serve You That Walk Alongside You over a Number of Weeks to Teach You Biblical Principles of Managing Money up You Set up a Debt Repayment Plan Giving Plan and the Spending Plan Also Will Help You Get Acquainted with the Moneywise App Which Is Available As a Free Download in Your App Store. Just Search Her Moneywise Biblical Finance to Connect with the coach@ourwebsitemoneywiselive.org, click the button that says, in fact connect with the coach and will get you connected were you can begin to engage virtually was somebody who can really be an encouragement but also practical help to you along your financial journey get moneywise live.org, let's go back to the phones William your next on the program, Greta Hetzer question about my house and I will be making a profit on and I was told that there is an exemption out of capital gains if you're getting married on trail and then the issue at that. I'm getting married in the same fiscal year showing okay so this was your primary residence, is that right okay so as your primary residence. The others that basically a home sale exclusion from capital gains as long as you live in the home for two out of the last five years, then you would be excluded from capital gains on that sale of the home as a single taxpayer for $250,000 worth of gain and for a married taxpayer $500,000 so you can have more than $250,000 and gain their for over a year or you haven't okay so yet you had to be a two out of the last five years.

I will ask my team believe that I I'm not aware of any other exclusion that would allow you to miss that game.

If you've only been there a year and you're planning to move, but certainly we can take a look at that and see if there's something else there you I would always encourage you when you have a change in your financial life and getting married is certainly one of those major changes for you to seek out a tax professional who can walk alongside you as you will begin to now file jointly and put your financial lives together. I just making sure everything is being done properly are taking every deduction available to you, but you're also filing on a timely basis.

So if you need a certified kingdom advisor in the tax and accounting area there in Ohio.

William December, a website moneywise live.org to connect with the CK.

I think that would be great next step for and we appreciate your call. WGN B is next up calling for Michigan go right ahead. When people pay online, like PayPal law called strike the right word for it. Yes, you heard of that I have absolutely. Is that any good. What do you have to say on that debit credit card right yes it say just a process of payments so both PayPal, which is very well known name and very easy to use and striper very very popular feel both of them charge a percentage plus a certain fixed amount for an online transaction and no stripe has become massive immune they power.

Some of the biggest brands out there in the marketplace like Lifton. Under Armour and Pinterest and so it's becoming very very popular. You know, you don't need a stripe account only a debit or credit card, and it's a really simple process so you would find that they have all of the latest security features and they are certified by the payment card industry is a PCI service provider level I which is the highest level of security in the payments industry. PCI has become kind of the gold standard. As of late, and is, is the requirement for those that accept online payments related to security in there the highest level so I wouldn't have any issue with you using a stripe to conduct business online and again it's it's one of the biggest players out there so hopefully that's helpful to you that we appreciate your call today. Let's go to ESA in Indiana your next on moneywise live go ahead, call this man what it your way, shed working really hard on my credit almost up to 700 and then one of the creditor… The right thing to do and what of my creditors close my account and any and then my credit score plummeted on hundred and nine point told mom that I was wondering if there is anything that I could do about that. Well, are you carrying a balance ESA on the other accounts that are still active, yet okay now. So what happened there likely was that when that account was closed based on inactivity and they would have you know that would've been in the fine print when you opened that that you know says basically with a certain number of months of inactivity.

The account can be closed because they want to go and extend that credit to somebody who's going to use it because that's how they make money that mean you should have been using it is just that's how the industry works. As soon as that account was closed and that credit limit was removed from the total credit that's available to you which meant that the balances you were carrying were a higher percentage of your overall limit, and as that percentage moved up what's called your credit utilization ratio. Your credit utilization went probably above the 30% threshold which causes your score to come down so the only way to reverse this would be number one overtime number two would be to get that credit utilization down and I would encourage you rather than opening up new accounts.

I would encourage you to just really focus on paying down your debt and getting on a plan that can allow you to pay that off as quickly as you can, whether that's through credit counseling program or just limiting your lifestyle and trying to pay as much as you can toward the balance each month, but that's what's going on here you know.

The key here, though you say is I'm much more interested in your financial health and you being on a solid financial footing that I am your credit score. That's only going to come into play when you're out there seeking new credit because you want to be able to qualify for the best rates and terms. But if you're not out there looking for credit and from. I hope you're not out there seeking a lot of new credit than it really doesn't matter that you you saw that decline and you can reverse that by continuing to be an on-time payer and continuing to focus on gripping those balances down over time. If you want to connect with our friends at Christian credit counselors for a credit counseling program that could be a great way to accelerate your debt reduction. You'll find them in Christian credit counselors.org. We appreciate your call today. Let's head to Florida next Paul you're on moneywise live go ahead 1986 my life.

Glad here's my question is in regard to 70 years old 50,000 between Social Security and pension.

I have no doubt I what I have about 200,000 vested and mutual funds five different mutual funds earning between five and 7% over last 10 years and I'm content there, but I'm just wondering if half of them are the higher level risk and half are at a lower level you see any reason why I should be All on lower level where I'm not sure it's a great question, Paul is run back to those numbers again quickly. Would you say that the total of the investment portfolio is today $200 250,000 and you said you been earning between five and 7% annualized teacher yet. Okay, sure. What's the breakdown between stocks and bonds in the portfolio.

I know bonds I had them in the beginning, so it's 100% in stocks and are you pulling in income off of that knowledge okay and so your covering your expenses right now with Social Security year and other sources are well about 40% of what it takes for me to live for some to my church.

So you're obviously living well within your means living modestly. I love that, and this money is able just to continue to grow.

You know could be there down the road if you needed, you know, assisted living or some sort of long-term care which could get to know quite expensive.

So I like the idea that you would have this money growing, having no hundred percent of your investable assets in this season of life. At the risk of the stock market does seem too aggressive to me. I would tend to ask you to have something more like 30% in stocks and maybe 70% in bonds.

You probably done quite well over the last you know decade or so. But as we head into the prospect of a you know a market that could hit a bump in the road with a recession in a year or two down the road. Once we work through all this stimulus and fiscal policy and the economy reopens fully in all this. This economy has been gone quite a tear on the upside, so I could see us having a downturn here in the next couple years and I wouldn't want 100% of your assets at least investable portion at the risk of the stock market. So I encourage you to seek out an investment professional Paul that can help you build a portfolio that takes the risk level way down so that it's there if you need to begin to draw on it but if you saw a decline in the market of let's say 35% wouldn't see your portfolio find a CK our website moneywise live.co book sexually along with us today that's going to do it for us. I want to say thank you to my amazing team, Deb Solomon, Amy Rios, Jim Henry and the rest moneywise live is a partnership between Moody radio and moneywise media will be back tomorrow to do it all over again. Hope you can join us