5 Retirement Myths

This is Doug Hastings, VP of Moody radio and were thankful for support from our listeners, and businesses like United faith mortgage heading into spring. I've been spending a lot of time pondering, analyzing and debating something extremely important to men and even many women and that's whether a new driver would improve my golf game I would say them somewhere between embarrassing and appalling at golf man do I love it and all my buddies show up with these epic/big maverick Bertha drivers and I can't help but feel like they've got this massive advantage on me and my persimmons. It's right that our family mortgage team are proud to have a pretty special advantage ourselves and one that can be a big deal for you. Our team is an arm of the company who is a direct lender, which means our company uses its own money and make its own decisions within its own walls. There is no middleman in this advantage often allows us to get you a better rate, saving monthly and lifelong money on a refinance or new home purchase were much better in mortgages than I am at golf. We are United faith mortgage United faith mortgage is a DBA of United mortgage Corp. 25 Belleville 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 founding father John Schwartz wrote the facts are stubborn things and whatever may be our wishes, they cannot alter facts and evidence. Rob West facts are especially handy for dispelling myths that could affect your retirement savings. First up today will arm ourselves with those facts and do away with five retirement village on your calls and questions 800-525-7000 800-525-7000. This is moneywise. Biblical wisdom meets today's financial decisions rid of is the idea that the withdrawal you anticipate for your savings in retirement is a set it and forget it kind of thing.

The fact is so much can happen between now and the day you quit working that it's prudent to revisit your calculation periodically, will you stick with the 4% rule of thumb. That's the amount of annual withdrawal advisors have recommended for decades on the assumption that a properly diversified portfolio could last 30 years with that level of withdrawal.

That's assuming your portfolio continues to gain enough to offset inflation. If you've already retired or are about to you want to get with your advisors regularly to review your anticipated withdrawal rate you'll take into account how stock prices and inflation may impact your returns. You may have to make adjustments to your retirement income now younger folks might want to go with a safer withdrawal rate of 3 to 4%, but it could be higher if you faithfully contribute 10 to 15% of your income to your retirement plan. Again, meeting with your advisor will help you set up a strategy that meets your goals and needs that the second retirement myth that we need to dispel is that Medicare will cover all of your healthcare costs. It's a very helpful program for many retirees, but was never intended to cover 100% of healthcare costs, deductibles and copayments can be hi Medicare doesn't cover dental, vision and hearing conditions. So you need to factor in the cost of a Medigap policy or a Medicare advantage plan from a private company to supplement Medicare that will cover the cost for Medicare parts A, B, C, but you also want to add part D coverage for prescriptions okay. Our next retirement myth is that the Social Security program will collapse and not be there for you when you retire while the program definitely has solvency issues that need to be faced. If you're in or nearing retirement. They're not likely to affect you. It's now estimated that without changes. Social Security's financial reserves will be able to pay full benefits until 2034.

At that point.

Benefits would have to be decreased by about 25% but will that actually happened, it's far more likely that Congress will overcome gridlock and implement steps to correct the problem either by increasing payroll taxes or raising the full retirement age or perhaps both.

But keep in mind that Social Security was only designed to cover about 40% of your retirement income.

That's why it's vitally important that you begin early and save as much as you can to provide the other 60%. If your employer offers a 401(k) plan that contribute enough to get the maximum match, then put additional funds into a Roth IRA where your withdrawals later will be tax-free are the next retirement myth is that you can simply keep working as long as you need to. The facts don't support this in the COBIT pandemic is a case in point.

A recent survey showed that 7% of those responding retired earlier than expected due to the pandemic. Another 11% say they now plan to retire sooner than expected, and here are two more surprising statistics. Listen to this nearly 25% of people in their 20s will become disabled before reaching full retirement age of 67 and nearly 70% of people over 65 will need long-term care at some point during retirement. The point is you have to plan on not being able to work as long as you'd like. Now the last retirement myth is that you will simply alter your lifestyle in retirement so that you don't run out of money but not that it's wrong to do that.

It's actually quite wise, but you may not find it as easy as you think, for several reasons.

You have more time on your hands, which can lead to overspending.

There's a temptation to take more trips, especially if your family out of town. You may want to pursue a hobby that leads to unplanned spending. Then there's inflation which Ronald Reagan once called the cruelest tax of all.

Right now the Fed is predicting 2% annual inflation. Several years into the future that might not seem like much but remember there's a compounding rate so it adds up over time right there you have it. Five retirement myths. Be sure to connect with your advisor to develop a plan for you. Your calls and texting hundred 525-7000.

This is moneywise live will be right so delighted to have you along with us today moneywise live on West will be taking your calls straight ahead number 800-525-7000 whatever is on your mind.

Financially, we'd like to look at it from a biblical viewpoint and see if we can give you some practical guidance 800-525-7000. We started today by talking about some retirement myths and that line of thinking was our question of the day on Facebook. The question was what you think is the greatest myth about retirement. Robert said that being idle is fulfilling is a myth.

I couldn't agree more. In fact, studies indicate that being idle. Not having a purpose in living out your calling see single productive activities. Not good for your health, that God designed us to be productive and so it stands to reason Anna said the myth that is the greatest in her mind is that retirement homes are inexpensive and boy that's true today more than ever with the housing prices where they are now continuing to move higher, perhaps as an opportunity to pull some equity off the table and downsize may be moved to a more rural location, but the homes are expensive, that's for sure and then cautious said the greatest retirement myth is that retirement even exists in God's economy. And I like that line of thinking you know we talk often about retirement, but I take a completely different approach than the world does in the sense that you won't see this idea. Retirement in the Bible apart from the Levitical priests but keep in mind as I said a moment ago God created us to be productive. We were workers before the fall. So were to take God's creation and improvement in the calling that he's placed on our lives to be in service to him. Well, it doesn't have an expiration date, so retirement is not as the world would presented in the sense that we accumulate as much as we can so we can live a life of leisure.

It's really about accumulating perhaps more than we need to spend today setting a portion of that aside so that when the day comes where perhaps were no longer able to work and I would refer you back to some of the statistics I cited a moment ago about 70% of Americans over age 65 meeting long-term care and the number that will become disabled and unable to work, we need to take a portion of what were receiving today from God's provision and set it aside so that we we can work. We have the ability to provide for ourselves, but that doesn't mean we're just walking the beach aimlessly picking up shells were continuing to ask God, what's my next assignment.

Even if were transitioning out of full-time paid work and so it's really a conversation between us and God.

To say what would you have for me in this next season of life and keep in mind when we were teach when we reach those golden years.

Well, that's what we have the most wisdom and experience to use in God's service.

So let's save diligently. But let's do it with a mindset toward serving the Lord in living out his purposes for our lives throughout the whole of our life until he calls us home. All right, let's get to your questions and calls today. Here's the number again. We got a few lines open 800-525-7000 were to begin today in Cleveland, Ohio Sharon, thank you for going. How can help you point financial planner for recount location and they are charging for a current long-range comprehension plan and then after that my portfolio event reasonable that normal. Yes it is. So when it comes to a certified financial planner, providing a comprehensive plan which they're trained to do, as evidenced by the CFP designation. That's gonna cover all of the major areas basics of retirement planning, investment planning, retirement savings and income planning should touch on tax and estate planning risk management and insurance and then also if necessary. Education planning so that comprehensive plan would typically be charged on an hourly basis based on the needs that you have than the complexity of the plan to be delivered not just so you get a big binder that sits on a shelf somewhere, but so that you have somebody looking at really the whole landscape of your finances to help you plot a course that is clearly going to change over time but it's going to be a really instrumental document to make sure that you're addressing all of the needed areas financially.

In addition to that, though the same professional, or perhaps another one. It just depends on their competencies would typically handle investments separately and that is most commonly today charged as a fee, which is a percentage of the assets that are under management. So not uncommon at all for those to be charged separately and the great thing about paying for a financial plan on an hourly basis is if you don't choose to have that professional manage your money because you're paying him or her for their time and expertise. Then there's not any inherent bias. They're not trying to sell you anything. They're just giving you a plan and their recommendations and thoughts on your current situation yelled for their time and that should be aligned very well with your priorities now.

The reason we recommend. In addition to CFP, CK, a certified kingdom advisor is because we want that person to have a biblical viewpoint and I share just a moment ago, Sharon really a biblical worldview of retirement, at least from my perspective and I would want your advisor to share God's heart as it relates to how you approach accumulation and lifestyle and giving all of these areas really running them through a biblical worldview. But to answer your question, that's not unexpected, and I think it's actually quite quite normal. How you're being charged.

Do you have any further questions or they are charging right hourly rate. We would look at him approximately four times over the course of this. You indicated it would tell us that like the best time to take the security and auditing based on all of our asset, income, and then after that, you know, our portfolio and investment advice. It gave a charge of encouragement for the management or working yes and the flat rates again would be very customary. It would be based on their estimate of how long it would take, but yet I would expect that flat rate. This is very customary is that. Are they saying that it's required that you use them for the investment management or could you just do the mall after we take a look at the clan.

Okay, we don't want to, you know have an association with you. You know then we went to have the plan they would have their fee and we can move on. But you know ultimate desire is for us to become a long-term customer so that they would manage all of our aunt and consumer to get well and clearly during the planning process you to have the chance to get to know the organization.

The company as well as the individual advisor or advisors you're working with and hopefully develop a rapport that would then lead to investment management but I think that sounds like a good plan, actually, and I encourage just about everyone to seek out a financial professional to have the kind of plan done that you're describing on a comprehensive basis so we appreciate your call today. Sharon to round rock, Texas, Nancy, thanks for your call today. How can we help right now you're talking about 2008 high single and note that other than my home right now I have my balance that out on my home 36,000 and wondering what the market booming right now my home being triple in value. Is this the time to say no. I'm just finding classes. Nancy, let me ask you how how is your budget and maybe this is where you are going to go next. Are you having trouble keeping the bills pay making ends meet. Right now my home at 15 alum Brennan meant to appliances that need to be replaced. How do I keep up with car maintenance medical co-pay and things like that. I'm managing but it's very little left over. Yes. Okay.

And how much equity do you have in the right now that I am my purchase amount and what's owed or know you can sell it for realistically noticed balance on your mortgage so I think it could sell for 254 and 36 was what I thought about 2002 20 movie 20,000 okay and so you believe that if you were to find something let's say no after the expenses that you incur on the sale and then the purchase. Let's say you bought something for 200,000, which eliminated your mortgage. Would that help you to balance the budget, or would you still have a shortfall depends on what position I would be at the point of move and I thought about promptly. Maybe buying a house with my daughter but I don't know if that's a good idea children she still racing and I thought I could be of help with them but I'm probably not thinking that through completely sure what here's what I would say I mean clearly the housing market is sky high right now and so I suspect you. Looking at the number that you believe you could get in think and thinking wow that's a lot of money in it if in mind you'd have the same issue in the home.

You tried to buy on the other side so you're going to pay top dollar for those home so I would just want you to make sure that you visit with the realtor is probably your next call to see what you can realistically get out of his current home and see what it's gonna take to buy. On the other side.

Realistically run the numbers and see how that budget comes out still alive will talk tomorrow here right back to moneywise. Eventually along with us today just before the break we were talking with the caller who is really processing trying to make ends meet in retirement. She's seeing her home rise significantly in value.

Like most homes are around the country and thinking about an opportunity to either downsize to something smaller, perhaps eliminating the mortgage and/or moving in and buying something with her daughter who has small children off the year we were just saying in number one.

She needs to connect with a realtor who can really help her evaluate what is she truly going to net from this sale based on comps and factoring in the expenses associated with selling it. What can she buy because she's going to sell for top dollar, but also by for top dollar. So what can she buy that would really meet her needs and eliminate the mortgage and is that possible, and then we gotta make all the numbers work before going to proceed with something major like this. We also talked at length about her needing to really pray and think through moving in with her daughter just to make sure they're both going into that with their eyes wide open and make sure that's can be a positive thing relationally but appreciate the call very much and hope that was helpful to you. We got some wines open today. Here's the number 800-525-7000.

Let's head to Norfork Nebraska. Ron, thank you for your patience.

I can help user. Some have money in my 401(k) and bid here in okay to talk about the stock market crashing and think about retiring here in the near future. Was wondering if I should take money out of 401(k) and by gold or take the money out of the stocks and bonds and just put it in in cash in on just letting a girl like you know 2% interest where you can lose it. The stock market crashes or I appreciate that question Ron and obviously we got some headwinds against us and delivered as of late about inflation turning up the Federal Reserve says that's transitory, which is there in their language that just means it's short-lived, as the economy reopens and we get the supply chains in this country working again.

You were going to have a period of time here where demand is going to exceed supply and that is basic economics and causes prices to be driven higher. But as we get fully functioning and opened again as a country. They believe that a work its way through the system and they'll be able to keep inflation pegged at that 2% target and if they can do that although that's meaningful over time because it compounds that's realistic. The consumer's very strong corporate earnings are very strong. We got a lot of debt. No doubt about it. We been spending incredibly in this country, in part, for good reason to stimulate the economy. The problem is the decade before that when the economy was very good.

We continue to spend in that way as well.

And there's got to be a reckoning where were going to need to address the growing and mounting debt in this country I believe will do it. We have a history of making smart choices when we have to.

And I don't think were heading for a debt crisis anytime soon, but it's something that's going to have to be addressed in my view, Ron. It's not a time to go to cash and it's not a time to highly concentrated in other precious metals. Your gold has a terrible historical return long term but when you compare it to other asset classes tends to be more volatile that something you don't want to do well because it means everything else is doing poorly. But it's it is a store of value, but it only earns money when you sell it, which means that it doesn't provide any income, and it's going to be difficult if we got into real hard times to use it, you know, in any way that's actually productive so I also don't like going to cash because of the Lord Terry's and you have good health. You need this money to last for decades. So I think the answer is to still believe in the long-term success of the market vis-à-vis the strength of the US economy long-term. You want to make sure you get your allocation right, which means that you're nearing retirement. Dial back your stock exposure so that if that portion of the market was down 35% for a couple years, which is typically as bad as it gets, you'd still be able to weather the I think you need an advisor though they can help you navigate. I appreciate your call today. Trust in the Lord and let's stay properly diversified along with this. Thanks for joining us today and moneywise live on Rob West taking your calls and questions on anything financial 800-525-7000 800-525-7000. Are you having trouble staying on budget. Do you have a plan but you just can't control the flow of money in and out. There's more month left than money on a regular basis well I found that the tried-and-true envelope system is the very best way to stay on stay on track with your finances. In fact, a digital envelope system is even better because you've always got access to your envelope balances right there on your smart phone or on your tablet. We built over a years time with three full-time developers. What I believe is the very best digital envelope system out there and it's found in the moneywise app. If you haven't downloaded the moneywise app you can do that today. Just had a prettier app store Google player the Apple App Store search for moneywise biblical financing in addition to the digital envelope system. You also see our moneywise community where you can post questions and get responses for moneywise. Coaches will also be able to access our Discover tab with all the best content podcasts, articles and videos in Christian finance all in one place. You also bill to get to our broadcast archives as well. It's the moneywise Alpine.

It's in your app store. Would love for you to download it today two lines open 800-525-7000 two Chicago, Illinois Michelle, thanks for your patience. How can I help you hi Michelle you there okay I think we lost Michelle will put her on hold and see if we can get her back on the line but said to Oklahoma City, Oklahoma. Diane, you're next on the program. Go ahead and have a dilemma. I'm trying to determine if it made to pay off my house to safely retirement. I think I want to work but maybe another two years but I just don't know what what – it my money yeah very good. Well it's a great question to think about because clearly Diane these priorities with your limited resources are both good. We should be saving for the future. We should also be pursuing a life or were completely unencumbered.

Over time, and I'd love ideally it doesn't always work out this way. I'd love for you to time the payoff of the home with that. That you're entering retirement so you get your expenses as low as possible, and therefore you don't need as much to find your lifestyle and also gives you some real great flexibility and peace of mind doesn't mean I can always work out that way. But let's see if we can try to figure out how we can make that work. Give me a sense of based on your current path how long it would take for you to pay off the home. Well tolerated by pain and light double note I get paid off at night two years okay and you said two years was about the timeframe you believe you'd like to continue to work is that right right right okay alright and how much have you saved for retirement at this point but now I have like 150 K very good. Have you done a retirement budget. Diane looking at meal if you were to pay off the home what it would take for you to fund all of your expenses each month a little bit yet I think is take take about 3500 okay are very good and what you expect to receive from Social Security and any other retirement income, not counting the hundred 50,000 all about 3000 3000 okay good well here's the good thing you know if we were to take that hundred and 50,000, and whatever that will grow to over the next couple years and I wouldn't want you to be too aggressive with that since your proximity to retirement is so close your we would typically use a 4% just yell at face value, and we can have is to do more in-depth planning, but just for the sake of our conversation, we would typically use a 4% withdrawal rate.

So if you were to apply that $250,000 that be about 6000 a year 500 a month that you could pull out of that hundred and 50,000, and ideally have a investment strategy that allows you not to ever touch the principal so you just as innocence living off of the income and from what I'm hearing, although it might be tight. That 500 a month plus the 3000 you're expecting from other sources would get you that 3500 a month would leave you whole Lotta margin that it would get you there, and so I kinda like the idea that you would really work toward paying off that home between now and then so that when you retire. Whether it's two years or maybe a delayed by year it's three years you got that home paid off free and clear you get your expenses as low as possible.

Assuming you're planning to stay in the home and you know you just contribute whatever is left to the retirement account, although I realize it would be less then you could if you weren't focused on paying off the home let that grow over the next couple years. Ideally, the market does well and even if it doesn't, keep in mind you still have a long need for this money even once you retire you you could need this money to last a couple of decades. So I think that's a good plan for you to really focus on paying off that house between now and retirement and I think with the prospects of the market, probably not growing as much as it has the last couple years and and certainly not of the last decade. I think that would be a good use of your money to get that paid off and I think you'll be really glad you did it in the does that make sense.

It was an addendum. I didn't know if which way to go which way would be to dead weight yeah and I like that plan a lot.

I think that makes a lot of sense to me and I couldn't argue with either one of you had a real conviction, one where the other, but I think if it were me, I'd like for you to enter that season with your expenses as low as possible and the best way to do that is really to focus in on paying off that mortgage so all the best to you and this next season of life.

It will be exciting and to keep us posted on how it goes. Sorry. Let's head back to Chicago will try to connect with Michelle one more time.

Michelle you there very how can I help you with no problem. I find out my mom and I are looking to do a well.

I'm looking to do a will for her and wanted to see what sublet the best clearly to start and how to get you know just get started on it were to go online or Contact an attorney or I would.

I would typically encourage you to contact an attorney just to make sure that what you're doing is right. You know, things, laws vary by state, you know, this is an important decision. It's the last stewardship decision you'll make in your mom will make for your wills, respectively, to make sure that everything you have and is been entrusted to you will pass according to your wishes.

If you happen to have minor children.

It's critical because that will name the Guardian as well. The average cost for a will drawn up by an attorney on average is a flat fee for about $300 for a simple will, you'll pay.

Obviously a higher flat fee for larger, more complicated, the state could be $1000 or more depending upon what the situation is, you certainly can go online to something like LegalZoom that would get the cost down to about $89 and although that's better than nothing. Again I like Kevin somebody who's in the competent estate planning attorney asking you the questions and making sure that you know things are done the way that you and your mom wants to reflect your wishes. You can also handle some other things at the same time, like a living will or a healthcare surrogate or a durable power of attorney so that end-of-life decisions are handled so that during a difficult period of time. Those decisions are made in advance and be a real focus and attention can be given to the care of the individual by the person name and that would be another reason I think to get an attorney, so the principal your local church asked for referral or connect with the CK in Chicago asked for a procedure called Torah, money was not delighted that he along with us today and moneywise live for God's word intersection your financial life just ahead will get back to the phones. But first, it's well normally it's Monday that we do our market commentary with Bob Dall because of the holiday yesterday. They Bob joins us on Tuesday with his Dall's deliberations.

Bob is a good friend committed Christ follower but industry veteran on Wall Street managing literally billions of dollars for a long long time.

And Bob, but I know many count on your deliberations, and analysis of the market were so thankful you share them with us weekly and so fascinating to see how the narrative has changed somewhat. If we ever didn't remember that the market was a leading indicator.

It seems just as everything is really beginning to catch some steam in terms of reopening the markets that having second thoughts about the prospects of higher ground.

What say you, with you, Rob.

It been amazing how strong the market is been from the low last March in the S&P 500 99 0% so a lot of the good news of the market knows about and we can and will continue to get good news about the economy and earning just what I call the other side of that tug-of-war is with that comes the threat of modestly higher interest rates and inflation and I think that's going to create exactly which is a choppy, directionless soda market at today's a perfect example market futures this morning.

Work on the limit and you know it sagged all day and were closing essentially unchanged. So I think we get a lot of that sort of back and forth.

It may frustrate both the bulls and the bears were. Here, yes, no doubt about it, and obviously we've got a lot that's being discussed related to Pres. Biden's infrastructure plan. He's got additional initiatives. Some of those are in jeopardy, including the prospect of higher taxes because Republicans in the Senate of made it clear they're not for its including a handful of moderate Democrats. How do you think that will factor yeah I think your your your right on coming back to mom's product probably said one of the threats to the markets higher taxes and not when I got to get some higher taxes but nothing like markets potentially beer. Just a few weeks ago that the spending initiatives and the proposed tax increases were gargantuan that you go back the Democratic platform for the election. It was literally $6 trillion of new spending $4 trillion of new taxes when I can get anything close to that, Rob. We may cobble together a bipartisan bill on infrastructure, infrastructure, excuse you when I think about it, wrote letter north of there very broad definition is cut come through and that you know we need some of that to get done, but the probably not fixed $6 trillion work well. Speaking of 6 trillion it seems like we keep hearing that T word related all kinds of things including covert stimulus. Bob talk about that person on Main Street right now that seeing the incredible rise in the dead in this country there hearing the inflation warnings their thinking this is a time to just get out the dress that force. So I will I commiserate with that concern we are borrowing big time in the future but like everything in the markets.

Timing is key.

People Christians in particular, rightfully have been complaining about the size of the debt and the deficit, but so far frankly it's not matter and the reason you and I talked about this before, is that interest rates have moved down faster than the debt has moved up such that interest. 6/10 for our government has actually been falling through this.

That won't last forever Robin so that worried investor I say watch interest rates like a hawk. If interest rates get out of hand. On the upside, this will become a problem, but in the meantime, the strength of the economy and earnings is overwhelming.

Any of those concerns, at least in the near term, and by near-term I mean next? Bob, if we were to see that. Let's say interest rates start to head up and then combined with the debt levels.

As you said, gets us into a problem area. We still have some levers to pull at that point right yes we do, starting with the printing press that the government running and we can criticize that and be concerned about the inflationary consequent that no question you can raise taxes. That happened after the Great Depression guy taxes were raised significantly and yell that slows the economy to you can depreciate your currency is another way out of this. None of those three alternatives Rob much fun or real beneficial.

But the tough choices at some point will will will have to be made. As you know the saying there is no free lunch. That's right slow Bob so thankful for you. I think at the end of the day.

We need to stay grounded in the fact that God's word has some principles that we need to apply including a long-term perspective, we need to have spousal unity. We need to be properly diversified and we need to understand where our trust lies ultimately and that's in the Lord not enter things, leave us today was just some grounding. I endorse everything you just said what I would add to it is obvious remember it's not ours. In the first place. God owns it all and we've all been stewardship over the things you've given is not just money, but our very lives, our bodies, our relationship when it comes to money. I think people really my money. Here's what I do with it but it money. Therefore, I have a solemn and unbelievable opportunity to take good care of it and that's what you I know you do your listeners all the time. Well said. My friend will look for you next week. Thank you for stopping by. God bless you to Bob's all good friends in the weekly market analyst for spirit money what moneywise a great opportunity just to get Bob's take on what's happening around us in the near term but also longer-term as well. He certainly seen it all by back to the phones today Orlando, Florida. Michael, thank you for your patience. I can help you where you think all old over so I don't look okay that reception really reporting all about what your debts to trying to be a good steward but like writing about the out one child let before he graduates to hear about your aunt while we were considering down five now, but that you had set up all the possible that it's so hot right now my area and there are no greatly inflated so sure I like stay where we are making that money. We have a lot of that with the alt.and if I come by quite the $400,000 equity in the house and so perhaps acting out 30 or $40,000 upgrade MICHAEL wait we are having some trouble hearing you.

I think I got the gist of it. Yeah, I think the key here is that whether or not you'd want to do a refi is really to be dependent upon whether it makes sense for you to go roll the whole mortgage into this cash out for some home improvements or whether you want to leave that mortgage in place and just get a home equity loan, not a line of credit with a variable rate but alone with a fixed rate, you'd only want to include the whole mortgage if it made sense at face value without this additional cash out meaning you can save at least a point 1/4 on the interest rate you plan to stay in this home for at least 5 to 7 years.

You're not going to increase the term so you got 10 years left to go with the new 10 year mortgage or 15 year at the most and make sure you build the amortization schedule so you're not decreasing the interest rate but just lengthening the overall term. Otherwise, if you can't really check those boxes I'd look more to a home equity loan. Beyond that, it's really come down to. Can you afford it you know. Does that fit well within the budget. What is that due to other priorities that you have in terms of your ability to save for the future and give for any other more short-term or medium-term savings goals and then depending on how long you plan to stay in the Psalm that's can help you decide what things make sense in terms of renovations and improvements. If you think you're only 5 to 7 years from selling. I'd be a little more judicious about how you go about selecting the things you're going to do just to see whether these are things that are going to eventually get your money back out of versus Io things that if you were to stay longer-term. It's really comes down to what are you most going to enjoy.

So I think that's the approach. Nothing wrong with enjoying some of that home equity. You obviously are saving a good bit by not selling because you don't have those transaction costs on the sale and on the purchase and a new mortgage so I like that and you know if you've got the equity there again, assuming you've counted the cost and it fits into the budget that I'd say I go right ahead, but only do that new first mortgage with a cash out. If it makes sense based on the parameters that I set otherwise I go for that home equity loan with the fixed rate up. Sorry we couldn't hear you terribly well, and you may have had an additional comment or two, but we were just losing you and so hope that helps you. We appreciate your call today Michael well that's good to do it for us a bath and sealant has been patiently waiting that you hold the line and will talk a bit more off the air.

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