Paying for Convenience

Hey there I'm Jim and Baxter and I certainly radio is the director of business development. Our team's job is to find businesses that love Moody radio and Jesus Christ and want to support the work we do financially just like you today. I like to introduce you to United States mortgage. Simply put, they are afraid focus mortgage team serving clients across the United States. They put together a team with Christian values with faith and family at the core.

They know that this is arguably the most important purchase of your life. Check out the top five things you should know about United States mortgage@unitedfaithmortgage.com thanks to you and United for for supporting the radio United is a DBA of United mortgage Corp. 25 Millville Park Rd., Millville, NY license 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. Today's version moneywise live according to our phone lines are not these days people focus on two things were buying goods and services helpdesk and I get it, and how much does it cost Rob Westwood folks don't often consider is that the first one has a big impact on the second. Put more simply, is how much they'll have to pay for convenience, because it certainly is free will talk about that today. Then we have some great calls lined up but please don't call him today because we are pre-recorded. This is moneywise live for God's word is the last word on our finances okay so the word can even worked its way into our lexicon for buying stuff, thing, convenience foods and convenience stores that convenience foods are easy to fix. Usually you just have to heat them up or get them from a fast food restaurant that convenience stores sell all kinds of things that we usually want in a hurry without having to go into a bigger grocery store everything from soft drinks to diapers, but all of these have one thing in common, they cost a bit more for the convenience and often at the expense of taste and nutrition as well. Now obviously we want to be good stewards of the resources God entrusted to us, but if you have the money in your budget for a convenience purchase.

Is it wrong to buy it while not necessarily, we have to budget our time as well as our money. There were only 24 hours a day and sometimes getting fast food for the family makes sense as long as it fits within your spending plan, but here are some ways that you can get caught paying for convenience, you can't afford.

Now you may be in a hurry while you're out doing errands so you grab a burger on the way. You know it's not in the budget. You can't afford the convenience of eating out, but you do it anyway.

Maybe you don't have time to cook at home so you opt for pizza delivery.

Again, not in the budget or instead of waiting for an item to go on sale at a local store, you simply go online and by now you're paying for shipping to and if you really needed in a hurry you're paying extra for expedited shipping you ignore the fact that convenience cost money in your budget is blown again.

By the way, don't get caught up in the myth that Amazon prime shipping is free. You pay an annual fee for that service and the true cost is probably still factored into the price. If it were really free, they wouldn't do it. The only way to make your Amazon prime membership pay for itself is to be a frequent shopper then only by things that you know are cheaper there than somewhere else. There's no question that Amazon and other online vendors are in fact a great convenience, but not at the expense of your budget. Now where are some other ways we might sacrifice stewardship for convenience.

Well, maybe the worst example of all is the dreaded payday loan. These are the crack cocaine of financial services payday loan outlets offer you some or all of the money in your next paycheck. But at extremely high interest rates. In many cases, the interest rate is so high that after you pay off the loan. You don't have enough money left to get to the next payday. And so you have to take out another loan, and of course the vicious cycle continues. It becomes impossible to break the habit. So never take out a payday loan right.

Here's another example of an unlimited data plan on your cell phone may be a convenience, and salespeople will always try to sell you one but do you really need it. Maybe not if you're mainly on Wi-Fi at home and don't use that much phone company data on the other hand, if your job keeps you on the road a lot. It may make sense to pay more for unlimited data. Here's another one that's becoming more common. Valet parking is a convenience offered at high-end restaurants and hotels and even some malls now let me ask you, does it make sense to pay for a gym membership and valet parking paying to walk on a treadmill and not to walk from the far end of the parking lot. Of course not. But some people do it without thinking. We should always be thinking what else could God's money be used for. So here's the bottom line, the less discretionary money you have, the fewer conveniences you can actually afford. You see, God wants us to enjoy his abundance. There's nothing wrong with that, within reason, even if you have the money to pay for convenience. It doesn't mean you always should, especially if it results in you saving or giving less. Keep in mind we want to be clear about the goals that God has given us in the way we accomplish our God-given goals. In the long term is to make sacrifices in the short term, your spending plan is going to be the driver. The key to you. Being able to have the margin to accomplish everything God wants you to accomplish included increasing giving time you're listening to a best of broadcast of moneywise live.

This program is prerecorded, so were not available to take your calls today, but you can email us at bastions@moneywise.org Rob West will be back with more moneywise live in just a moment listening to an encore presentation of moneywise live. Today's program is prerecorded, so keep that in mind and we hope you'll stick around and enjoy the rest of today's program back to moneywise live on Rob West. So glad you're along with us today.

We started out today talking about convenience. The cost of convenience and how we control expenses as we manage God's money because recognize that's the starting point that God owns it all and where is stewards. So when it comes to managing God's money. We should take great care being found faithful in how we manage God's money, and that means we should have a careful watch over what's coming in and going out.

How do we do that well. It starts with that spending plan. Having that budget. And here's the thing.

When we have the long view in mind. Remember, we can make better decisions today. The longer term our perspective so we know where were headed and when where were headed is informed by not just goals but are values. What's most important to us.

What is God doing in our lives and in our families and how can money as a tool be used.

To accomplish those purposes. When we have clarity around that it makes sacrificing in the short run.

Much, much easier we can say no to things knowing that it's a a note to a bigger yes the bigger yes, keeping us right in line with what God has for us in using money as a tool to accomplish that. That's I think the big idea we think about why we would want to have a spending plan. Why is that important you know to help you manage your money on a daily basis. We developed an app that can help you set up your spending plan use that in the digital envelope system. Download your transactions categorize them and as husband and wife. If you're married, stay on top of that, throughout the month. It's simple to download. You can go to our website moneywise.org or just your app store and search for money wise biblical finance.

You can download our our app today and in there you can get your spending plan set up. I think that once you track and get your spending plan in place and then develop a system to control the flow of money you'll have a lot more peace of mind as you steward God's resources and please let us know how it goes.

Along the way. Just a moment were going to talk to Jeff in Canton, Ohio, but first Timothy's in Nashville, Tennessee, and Timothy.

What's on your mind today. Thank you for the call looking you get like the current, recently married, got married and January my wife and I do not have any debt whatsoever.

We are currently living with her parents, and are in part caregivers or them that we don't have any right or mortgage right now but we don't have a home and I'm in an entry-level position and currently taking school laugh about two more years of school.

Our graduate just looking to determine how much life insurance I need as well as what term I should be looking for you very good Timothy's well yeah I'm glad that you thinking about this now so often folks especially were young newly married in old Kenneth. This is often one of those things that gets overlooked along with the having a will in place which what you start having kids. It's it's always important to have a will is critical when you have kids because that's where you can name a guardian should the Lord take both of you home at the same time so I think it's really important we begin thinking about your life insurance coverage and the good thing is that if you use term insurance which is were you just buying pure insurance and your paying as little cost as possible just for the mortality expense, not the no adding that to a savings plan, then I think you can yell get it very inexpensively and make sure you have the proper coverage which your need for that will change over time, but at a minimum you want to start with 10 to 12 times your income is just good rule of thumb and keep in mind what were trying to do here is replace a hardship that would create be created for your wife if the Lord were to take you and does so she's got a bill to replace your income to maintain lifestyle and realize you're just starting out, but this is a good starting point. But once you have kids you want to bump that up in most cases folks recommend. In addition to that 10 to 12 times your income you want to add roughly 100,000 per child for college expenses and then you often times you'll add to that any other debts that you have including your mortgage to be able to pay that off because here's the idea.

If we had 10 to 12 times your income in a lump sum and then enough to pay off the house enough to cover major planned expenses, namely college and anything else and pay off the debt. Any other consumer debt so that your completely debt-free. Then your wife in this case would be able to convert that lump sum to an income stream. That's pretty modest again with all of those things already taken care of to maintain her lifestyle while she still saving until retirement age at which point the insurance would no longer be needed and then ill on your life meaning a death benefit payable to her as the beneficiary on excuse me something on her life payable to you if she's working would follow kind of the same rules of thumb, primarily to replace income because the other things would be covered go perhaps in in your policy and then yelled for her if she's a nonworking spouse, you would typically look at okay what would be additional expenses that you would take on if the Lord were to call her home and that usually comes about when you start to have kids because now you would need to have full-time daycare if you're going to continue to work and that's not in the budget, probably at that point.

So those are kind of the starting points in terms of the length of that term policy. I'd look at either a 20 or 30 year level term. Keep in mind you'll typically replace it. You know, prior to that term expiring with the new 20 or 30 year policy. Assuming your healthy you would be able to come to read up on that and extend the length of that term to so that makes sense. Ultimately, it might perfect their currently entry-level are looking at about 30,000 annually once I graduate I could actually be somewhere between 50 and $70,000 spell and I am looking at 40 in the next couple year and my wife have a college age daughter of her own. So I'm just trying to get a big picture I should be looking at 400 500,000 under if I should be looking at more or less well I would probably maybe split the difference.

Keep in mind you can layer these policies on top of each other and so you could go and get 1/2 million dollars with the coverage now and then come back and add another quarter million on top of that you have to disclose it because of the insurance company's can one another's multiple policies in force but doesn't mean you have to stick with it or you can replace it keep in mind once you get qualified for a new policy of a larger amount to replace the whole thing starting that timeline over again and you you you been approved for it in the policies in force in your signatures on it and you can let that other policy lapse, and I just carry on with the new one so you don't have to decide on something that's going to last for the next 20 or 30 years.

Again, you know it can grow with you and with your lifestyle and needs.

So I think probably half million dollar policy which can be very inexpensive, very manageable at your age would get you started and then you want to reevaluate over time, but we appreciate your call today.

Timothy and thanks for checking in with us, let's head quickly to Canton, Ohio, Jeff, you're next on the program.

How can we help user I want to select your daily program that's really interrupting and what were impressed with all the rage of question that your answer may grant from time?

How was related to our daughter are largely 11, though taking money out of our IRA. They giving it to our daughter lifting up to her at the put in a law. While this usually put in the money early because you want to thought the great war opportunity earlier in the year that you dictate your entry of all all on one the negative and but you also just after and she is expecting a child. So I was wondering if you have any ideas on how how we should go about doing it to learn this year. Yes, she has earned income but you are giving that to her as a gift because she's living on her income and therefore this is what she's using the fund that Roth IRAs at right yeah measure outcomes.

I put it in on her own and so we don't have that option working out of all one. She does have a not a dimension teacher through the Alliance you have them out. You put it in an all one, but I'm not quite sure about the right thing to do at this moment. Okay, yeah, probably. Well first of all, for the Roth IRA. You know that I think what you're doing here is your paying the tax on it for her, then you're doing the gift which you can do 15,000 a year.

You and your wife could each to 15,000 is the annual gift exclusion and that she's just taking that money up to the Which happens to be PO $6000, said prior to the age of 50 and putting that into her Roth IRA which is going to grow for her as she probably has.

In addition to that the 401(k) plan which is basically an employer-sponsored money purchase retirement plan that allows you to put in the contributions into the plan and both the employer and the employee can contribute that usually government and nonprofit organizations, and the employer has a larger share of control over how the plan is invested and then she can withdraw it to through a rollover to address different qualified plan. So I would just encourage her, as you will get that money.

And that's very generous of you.

If there's no matching to start with that often fully funded and then switch over to the 401(k) through salary deferral and the goal there is to get the 10 to 15% will be right back your listening to a best of broadcast of moneywise live. This program is prerecorded, so were not available to take your calls today, but you can email us at questions at moneywise.please stay tuned back to moneywise live. So glad to have you along with us today just before the break we were talking with Jeff and Canton Ohio. He and his wife are pulling money out of the 401(k) systematically and gifting it to their daughter. She's turning around and putting it into a Roth IRA. In addition to that, Jeff. I'm speculating that she has a 401(k) plan. If you said it's not a 401(k) but in either case, it's a basically defined contribution retirement savings plan where she has the ability to put money in. I think the goal is over time and this will certainly be aided by the fact you are assisting is to get 10 to 15% of her pay into the plan. Over the long haul and if she does that, year after year with the compounding effect.

You shall be doing quite well and obviously you all are giving her a great boost to get there as you do this annual gifting.

I just want to make sure that you will have the ability to do that and you've got thought through your long-term plan in terms of what you're going to need to be able to maintain your lifestyle in retirement.

She's got a lot of time. Had you all don't have as much in terms of the ability to continue to save so just make sure that you really work through that. You mentioned you have a second question I understand it relates to real estate is that right related to uphold and or the real market rent: the hell out of hand and have a lot of people what I the old money and they greatly have that in each other. I'm real at about 88 times our house where portage and plot lot less land and were helping our daughter and not advising her is going to look they everything that she goat an outright purchase that they did on outrageously over 25% easily over the list price. So if you have any advice yeah you know it's a really challenging market nationwide, but especially in certain pockets of the country in California and Florida would certainly be them. Among those Florida I think this is a longer-term upside potential from this point even just because the number of people moving into the state of Florida trying to escape the higher taxes. California has all the location in the sun and the great weather, but the taxes are sky high and so you still got a lot of people leaving the area. Which means you know if she's just trying to enter the housing market. Now it's not that she's selling something that she's gonna benefit from on the sale selling it sky high to turn around and buy something.

This is probably good time especially with somebody was just starting out that if she be thinking about being a renter you while we give this some time for the housing market likely to cool off. It's clearly overvalued 40% higher than where was in 2016. Excuse me, 2006, just prior to the 2008 collapse and you were also seeing nationally today based on the euro demand and in the real value.

It's probably nationally, about 5 1/2% overvalued, but it would be more than that in places like what you're describing. So I think you know the key whenever you're buying is save save save C1 to buy with at least 20% down. I realize that's difficult to do special people and praying over market values. Make sure you don't overpay.

So don't get into those bidding wars and react emotionally and make sure that you're not spending more than 25% of your pay principal, interest, taxes and insurance. If you can't check those boxes, plus with an understanding going to try to stay in this home for at least a 5 to 10 years that I think it's time just away and let's let this housing market cool off, perhaps even dip and let her continue to say we look at this year or two down so I think that's to be my best advice for it. We appreciate your listening and calling today to pause for a brief break back with much more stable back to moneywise live unravel as this is where financial life intersects with the 2350 versus God's word dealing with money and possessions you want to know God's heart related to your money.

Let's ask her that together based on what's going on in your financial life will go back to the funds in just a moment. This is a great opportunity though for me to remind you that moneywise is listener supported entirely. It's your support that allows us to share God's financial wisdom every day through our moneywise coaches through certified kingdom advisors through our website and the moneywise app. Of course this radio broadcast in everything we do to come alongside you and provide this community of stewards really wanting to journey together and understand biblical financial principles. Would you consider a gift would certainly appreciate it. Whether you make a gift one time or you become a monthly partner or even a pro subscriber to the moneywise app. All of that helps us do what we do on a daily basis and we sure appreciate your assistance.

Here's how you can give online just head over to our website moneywise live.org, click the donate button. Whether you want to give cash or perhaps an appreciated stock like we had a listener give just yesterday or however you would like to give, we would be grateful again moneywise live.org just click donate. Let's head back to the phones Chattanooga Tennessee Gary understand you had a CD mature recently. As I write the correct following your advice for diversity.

This is Canada the secure end of our saving and you know that you strike your terrible wondering if you could recommend another option with similar security may be at the see new put that money at the date yeah I wish I had a good answer for you.

Gary unfortunately I don't I wouldn't like it up into another CD rates are just too low you not going to get rewarded enough for the illiquidity of the CD in today's environment. You can get 1/2 a percent gal with a liquid FDIC insured high-yield savings account from an online bank and you might get no .65 or .70 another 15 to 20 basis points in your to tie up the money for a full year. So I just put it back into a high-yield savings account and weight recognizing that the goal for at least that portion of your your net worth is to be stable and secure.

You don't want to take risk within I'm understanding and unfortunately in this environment, there are some benefits to having low interest rates. One of the downsides is exactly what were talking about here. I mean, any other option you would require a bit of risk a dividend paying stocks. You got the risk of the underlying security moving up and down even though there's the income from the dividends certainly peer to peer lending is getting more popular, but the other, obviously, is risk there even bond mutual funds, even short-term bond funds that certainly an alternative to CDs but as rates had higher the bond prices are going to fall you can get a good yield but you can see some decline in the value of the underlying investments of those funds or ETF's.

You know that the only kind, and a foolproof way if you will to to get a great return on your money.

This guarantee is paying down high cost debt because obviously that's going to be guaranteed returns equivalent to the interest rate that's going away as you pay that off, but otherwise Gary think in this environment.

We just gonna have to be happy with the a high-yield savings account. You could go to bank rate.com and compare but you know that .5 .55 is about the best you're going to do. Does it make sense of what about treasuries that yeah you know you're still not gonna do a whole lot better.

Their menu can you can look at treasuries in the yard buying direct or through no funds. You basket of treasuries through ETF's are mutual funds, you may do a little better there but again you know you're going to have the price of the treasury, moving around with interest rates and the direction is rate set up is that the treasuries will fall in value so I think you've got. I just have these baskets of money and for that it's you know your liquid reserves of six months or more depending on what season of life urine. I'd probably just stick with the high-yield savings and wait out this interest rates these interest rates moving higher. Once they normalize probably in the next year I think will be some other options there but unfortunately is not a whole lot you can do right now but we appreciate your call today sir.

By the way, check out sound mind investing.org they got some great articles so that they've done recently on some investment options. Specifically, as inflation begins to tip tick up not only tips treasury inflation protected securities, but a few other ideas and that may be an option for some of this is that we see inflation begin to creep up. You can be rewarded with some of these investments that are pegged to rising inflation sound mind investing.org just do a search on their website you'll see some great articles. We appreciate your call today. Let's head to Wisconsin Catherine what's on your mind will gathering the religion.

Okay, I think we had the distant, maybe I lost her out. No problem doing this is month every man and praying pretty much everything except for payment stating MMA can find that everything we can infer that private land currently on hold while we are taking one think it didn't end up paying footwear and delay from getting your thinking that government land are still on hold no plane mean putting any money we can keep building. I actually like the remake splitting around about the fact that the government getting weights made today will make a pile by way of figuring it would be better to put that money into feeding them to put it toward the loan. I just wanted you to check and make sure if you… Thank you Eric. You had any yes well I would agree with me given the deferments that are in place here and what's going on with coated absolutely the place to be looking is it toward the private loans first. That's gonna be where I would be focused on what you want to pay down, not to mention ill. In addition to the fact that they're in deferment there to give you the most flexibility even once you start repaying with income-based repayment options and the like.

Obviously if if loans are forgiven across the board, there's gonna be What Is Going to Be Able to Be Forgiven That Likely.

And so Again I Think If You Focus on Paying on Those Private Loans First. Now, If You Feel like You Haven't Said a Short up Your Emergency Fund Fully That I'd Probably Go There Next Just to Make Sure That You Even before Putting Extra Money toward the Student Loans.

Make Sure You Got That 3 to 6 Months and Dispenses after That I Would Continue Paying toward Those Pvt. Loans or Religious Uncertainty about the Legislation but You Can Never Go Wrong Reducing Debt to the Best of Your Ability and I Think You're Doing in the Right Order, so I'd Say Keep It up.

I'm Glad to Hear Your Lifestyles and Check Because You Have 20 a Margin Which Means You're Able to Shore up Your Financial Foundation That Is We Appreciate Section along with Assistance Moneywise. Rob West Paused for a Brief Break Would Come Back More of Your Questions Lines Open 5 to 5 Back to Moneywise Line Intersects with Your Financial Life Just Edward and a Talk about Getting a Large Settlement. Scott What to Do with the Money and Also an Inherited IRA That's Been Invested for 10 Years.

Terry Wants to Know Where to Go with That.

But Roses in Antioch, Illinois, Rose Huxley Assist You Today. I Have a Question for You. I Need Some Extensive Dental Work Between 35 and $55,000 and 55 or 59 1/2 and I Was Thinking about Taking It Out Of My 401(k), but Needed to Understand a Little Bit More about What the Rules Are There Effective Smart Thing to Do. If You Have Other Suggestions on How to Finance Best Yeah Yeah Unfortunately There's You Pulling Money Out Of Your 401(k) Is an Option. It's Not the Best Option Because It's Taxable Money and Obviously We Prefer to Let That Money Continue to Grow, so It's There for You down the Road and You Can Obviously Have To Take Whatever You Pull out and Set a Portion Aside to Cover the Tax on It but I'd Rather You Do That Than You're Taking on Some Debt so As Long As He's 59 1/2 If He's the If It's His.

I Read the Been No Penalty in Pulling the Money out. You'll Just Pay Income Tax on the Amount You Withdraw in the Year That You Take It out so It Will Be Added to Whatever Income You Have, during That Calendar Year and Then Obviously You Take Care Of It Out Of That Other Options Would Be Could Borrow against the 401(k), Assuming He Hasn't Separated from the Company.

I'm Not a Big Fan of That. I Think the Euro. Other Options Would Be You Know to Look at Pulling from an Emergency Fund Is Always You Have Margin and You Can Replenish That Looking at Other Assets That Could Be Liquidated and Then I Think You Know That the Last Option Would Be to Know How Could You Finance It in Such a in Some Way or Perhaps Working with the Provider on a Payment Plan of Some Kind to See If They Can Stretch It out over Time.

So Those Are to Be the Best Options. If You Were to Pull This out Rose of the 401(k). How Are You All Doing in Terms of What You Been Able to Set Aside Be Able to Cover Your Expenses in Retirement Have about 100 and 401(k) and about 100 Grand and Pension How We Plan on Working and Help Us Another 10 Years.

Okay Alright and How Much Do You Think You'll Need to Take out. I'm Depending on.

I Said the Dental Expenses between 35 and 55 and Were Still Praying and in Taking a Look at at Option There.

We Could Probably We Have about Eight Months of Expenses Saved in Our in Our Savings Account Will Probably Pull about 10 Grand Out Of There and Then Finance the Rest Okay Yeah so I Think That's Something.

Obviously It Sounds like This Is Major Dental Work That Has To Be Done and so No That's What the Emergency Fund Is, Therefore, We Don't Want to Depleted Entirely, but I Wouldn't Hesitate to YouIf Your Cash Payer to Go in There and Try to Negotiate with Them around the Cost of This Thing. Let Them Know That You Are Paying Cash.

It's Not Coming from Insurance That You Know You Can Show Them Your Finances and Let Them Know That You Know This Is a Bit of a Hardship.

Although You Plan to Pay It in Full. And If They Can Work with You Both and the Total Cost and the Timing of How It's Paid and When That Would Be a Real Blessing to You, but Apart from That, It Sounds like You're on the Right Track Here in Terms of How You Go about It. I Just Think and What Key As You Try to Keep Debt As Low As Possible in This Season and Really Keep Lifestyle in Check. Which Means You Gotta Control the Flow of Money Going in and out Your Spending Plan Is Going Be the Real Key Driver There, but I Think We Certainly Are Getting Creative. You're Asking the Right Questions, and I Think You're on the Right Track. So All the Best in That Dental Work That He Has To Have Done Rose. We Appreciate Your Call Today.

Let's Head to Ohio Terry, How Can We Assist You IRA for Me. It Goes from 20 20,039 Is the Other Part to Buy a New Car, so I'd like to Talk It's Timing and Only Goes from 20,000 to 2120 Can't Just Keep Having Heard Many Anything for 10 Years Now.

I Know Now What Should I Do in December. Now I'm Afraid to Take Sure What Is That Invested in the Absence of That, I Got Really down and It Was All Emotional. So I Will Wait to See the Case with the Sum of Money You're Talking about Terry to Be Better Served to Get Broader Diversification through Either Exchange Traded Funds or Mutual Funds Were You Can Own a Basket of Investments.

That's Not Tied to a Small Group of Individual Stocks Companies, Whether Their Banks or Some Other Industry Because You're Really Relying on One Sector to Do Well As Opposed to Getting a Broad Cross-Section of the Market Here Which Is Done Quite Well over the Last Decade, so I Think You Need to Reevaluate This. Given the Sum of Money It's It's Not Enough for a Financial Advisor to Come in and Manage It for You. So I Think You Should Be Looking at One of the Fund Families like Vanguard, You Could Use Their Robo Advisor Solution Where You Go through a Question-And-Answer Process and They Build a Very Low-Cost Diversified Portfolio for You.

You Could Use a SWAT Schwab Intelligent Portfolios. You Can Also Check with Our friends@soundmindinvesting.org and give these are believers that could give you an investment strategy there as well.

So I think it's time to perhaps read deploy these funds, but I'd be careful in terms of euro understanding what's the purpose of this money how quickly might you need it and make sure that your investment strategy reflects that because of this is money you think you might need within 10 years. You don't want to put all this in a stock investment strategy, even if it's diversified through mutual funds because we got into a recession.

A couple years down the road.

It wouldn't be out of the question for this to be down 35% and so if all of a sudden you know you got to the statement in the mail in your €20,000 was your 13,000, you'd probably be pretty frustrated and upset about that. Now keep in mind if you got a long time horizon you would go into it knowing what even if that happened. I'm in a wait for it to come back and it's good to move to higher ground, like it always does. But you know it may not be in a position to be able to take that level of risk and so if that's the case, you're going to have to have a more conservative posture which it would lower risk means lower return. So I think that's where you know working through one of these Robo advisors again like Sean Schwab intelligent portfolios are Vanguard or Fidelity will uncover that through the questions and answers and then come back to you with a really well diversified low-cost portfolio.

So I would check those out. If you have any other questions along the way, don't hesitate to give us a call.

We appreciate you checking with us, let's head to Chesterton, Indiana Danny what's on your mind today for a lot of year on a structured settlement except for the permit ability. They did that almost 20 or 21 years now and they they have changed how they wanted deal with and there tied it to that Messerli and Kyte may, but there wanting me to put it into a place to where I'll take an annuity for it put in place of Mike by regular payments that I get when I get I'm supposed to get them regardless.

But if I died tomorrow, it would all stop in the money that there there there also offer me the option of taking the money that a binding annuity and that money north of 900,000 so I'm kind I'm trying to get decent invite out even look at them. I never even considered it until you know 55 years old now and I have a 14-year-old daughter and I don't want to leave them with. Not that that map yes so are you looking.

Danny specifically for just how you want to take it, or whether you should take it in the first place whether I should take it in the first outside made it. It's a complete, it would basically cut my income in half but it would fight… Give me a rather large amount of money and I'm not very good at it like that is not my bag about, but it not my thing so yeah listen that we all have gifting's and that's why the Bible encourages us to seek wise counsel, which is part of the reason you're calling today, but I'm gonna ask you to perhaps add to that circle of counsel because this is really a critical decision to me this is a significant a sum of money and there needs to be some analysis done on what's best for you in terms of what's the lump sum which you said your understanding is around 900,000 versus your what's the present value of future income stream based on the annuity payout. They're going to give you and how does that compare to the lump sum they're offering a financial professional can help you calculate that and then deal beyond that, what is the what happens beyond your life to that annuity. Is there some survivors benefits were that continues or does it stop that's good to be a key part of the factor here and then beyond that, if you decide to take the lump sum who's gonna manage it. What's the investment strategy and what needs do you have as you head in to the season of life based on whether or not you have the ability to work or this is going to be your primary source of income and what could that look like to preserve these funds for the rest of your life which is can be critical for you to be able to do that. So do recommend that you connect with a certified kingdom advisor there in Indiana. I'd probably sit with at least two or three. Find one that's a real good fit for you go that you feel comfortable with. It has the track record look you're looking for where you know you all can begin to work together and here she will work with you again on some planning first to help you make the decision as to how you should take that and then perhaps that person or certainly another professional could then come alongside you to do the management of the money. Once you receive that assuming you decide to take some silk head to our website moneywise. Why.org just click find a CK again I'd interviewed 231 that's a best fit (life God gives you and the advisor.

Summer was the to say thank you my team today, producing his Rios Anderson tries so providing research of Eric Tidwell is Arcos greater today moneywise. Love is a partnership between radio moneywise to join us tomorrow night in the God's word and apply your finances to see that