Going Steady with Your Investment Plan

Listener that stands out that work with recently. Was this older couple that was interested in refinancing. He reached out to a few different lenders in the other credit wasn't the best. I know some of these other bigger banks. You just won't hear back from that which I cannot stand not everybody has the 780 credit scores and never had any hardships in their life. I'll walk you through what you have to do. How can you end up being able to do this refinance. Whether it's 236 months from now back that older couple. We work with them for months and months to improve their credit and we were able to get the loan done. We were saving them hundreds each month thousands of dollars a year. Finally got themselves into a situation financially that they can handle and they could start saving money each month, saving for retirement at the end of the day they just could not be happier. Which just put a huge smile on my face. We might heads one listener that stands out, that I work with recently. Was this older couple that was interested in refinancing the other credit wasn't the best. Not everybody has the 780 credit scores and never had any hardships in their life. I'll walk you through what you have to do.

How can you end up being able to do this refinance. Whether it's 236 months from now. We work with them for months and months to improve their credit and we were able to get the loan done.

We were saving them hundreds each month thousands of dollars a year and they can start saving money each month, saving for retirement, which just put a huge smile on my face. We might heads United face mortgages, a DBA of United mortgage Corp. 25 Millville Park Rd., Millville, 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 today's version moneywise line is prerecorded and sore phone lines are not open. We used to call an exclusive dating relationship going steady. That's not an option these days. When designating one's relationship status still is helpful in another way and I am Rob West going steady is still a good way to describe another serious and sustained commitment making regular investments will talk about that first today with investing expert Mark Miller we have some great calls lined up but we will be taking your live calls today because we're prerecorded.

This is moneywise live biblical wisdom for your financial decisions. Well, our friend and fellow Christ follower Mark Miller is executive editor at sound mind investing in Mark as always great to have you back on the program. Hey Rob, thanks for having me back about Mark Cooley recently talked about investing is a day at the beach another time. Recently we said it was like a tennis lesson. Now it's like going steady. How in the world we make this analogy and do we need a chaperone. We probably are due may receive a call Steve Moore back out of the environment that will vest in this series are some fun with this would absolutely have fun with. So you know, obviously Robert's friend that create some some good memory hooks to hang some of this material on and this going steady approach that were talking about today really refers to automating your investing.

By having a predetermined amount of money regularly transferred from your bank account into an investment account. When you invest the same amount of money at these regular intervals.

We often refer to that as dollar cost averaging a lot of people have probably heard that term and that is one of the main virtues of workplace retirement plans, like your 401(k) or 403B, but it's also important to note that you can set up your own automated investing plan. Even if you don't have a workplace retirement plan to participate in the that's great information and, as we say often dollar cost averaging is one of our favorite investment topics because it just works you contribute the same amount each paycheck to your retirement account. When the markets up you buy fewer shares when it's down you buy more shares and it always pays off in the long run, but markedly free to break that down a bit.

What are the distinct advantages of automating your investing in this way you will. In the article that were discussing today Rob.

We point out six specific advantages. We can run through those real quickly.

First of those is self-discipline, and when you're automating a dollar cost averaging plan it causes you to factor in your long-term investing into your budget right up front. Too often people leave their investing is kind of an afterthought, whatever is left over, which for most people. Of course, is nothing when they're done with her.

Their budgeting process they use it all up, but this way you're setting aside these regular installment payments toward your future financial security right up front building that right in your budget yeah and if you set it up for automatic contributions to look so your retirement account. You never have to think about it again. Which is really just one of the beautiful aspects of this approach, right, what's next yeah and you you really hit the nail right on the head given me a perfect lead and because the next advantage that we talk about is that automated investing eliminates the need to ask the question how is this a good time to buy stocks or should I hold off you know that question which we should point out, you never know the answer to that until much later. Only in hindsight do know is now a good time to buy stocks. That's a huge barrier for people making new investments, so this going steady idea by automating your investing assures that you're going to keep making these new investments consistently, even when the market is falling yeah and we might say, especially when the market is falling right yeah that's exactly. That's the next advantage of dollar cost averaging, which is you get more for your money on fun prices are low, your monthly investment stretches.

Further, you get more shares for your money. Strategy also works the other way when prices are high, you buy fewer shares. So while this doesn't protect you from losses dollar cost averaging will push down the average cost of your shares over time. Three of the six distinct benefits of dollar cost averaging, it comes from an article called, going steady. The advantages of systematic investment plan from sound mind investing.org.

More to come with Mark Miller just around the corner. Today's program is prerecorded, so keep that in mind when you hear phone numbers were going to pause for a brief break now, but Rob West will be back in a moment with more moneywise live delighted to have you with us today am Rob Webster hose joining us today is investing expert, Mark Miller, of sound mind investing. You can learn more@soundmindinvesting.org well today were talking about going steady.

Yes, that exclusive dating term that we used decades ago doesn't seem to be used much anymore but so were not talking about relationships.

Were talking about investing in market you've been unpacking for us the distinct advantages of dollar cost averaging. When we invest systematically that we've covered the first three but let's dive into the next advantage for regular, consistent retirement contributions.

The next one.

Rob is simply efficiency in assuming that you're using mutual funds, which allow you to purchase fractional funds shares. That means that every cent of your systematic investments gets put to work right away. That's because traditional funds are sold in fractional shares. So to give you an example. If you have a $200 monthly investment that might by 7.4928 shares of your desired mutual fund. The point simply being that the full amount gets put to work right away. The contrast, there is with exchange traded funds or stocks and the advantage that traditional funds have is that with stocks and ETF's are exchange traded funds. Those have to be purchased and full share amounts, at least for now. Now that's changing a little bit and it could be that within a few years. All of these types will be able to buy fractional shares, but for now traditional mutual funds are a little bit better for this type of automated investing and as a side note that's also why 401(k) plans have always focused on traditional funds and have traditionally excluded ETF's interesting RA will those are some of the real tangible advantages to dollar cost averaging, what about some of the less tangible advantages. You know here. You gotta start with peace of mind, because that's just a huge piece of the sea know when you're making small monthly investments. It's just way easier for people emotionally been putting a lot of money to work and at risk.

All it wants you know if the market falls after you made a particular monthly purchase.

Most people can just take that in stride, knowing that if the market continues to turn down they'll be able to buy even more shares. The following month and on the flipside, if the market rises right after you've made a monthly purchase, you feel really good about your immediate profit so the emotional swings with this approach are just way less severe than when you're trying to pick particular moments and add big batches and money all at once.

You can obviously only do that if your systematic with your investment plan or has we are saying going steady all right Mark what's the last advantage.

You know it's really the ease of getting started. You know, with most brokerage firms and fund companies you can open an investment account with a relatively small amount of money or even no upfront money at all, and beyond that most mutual funds allow for very small monthly transfers so this is really a an easy way to get started investing even if you don't have a lot of money already saved up.

Yeah, we get calls all the time.

Mark from folks wanting to know where to begin how to get started break that down for us. What are the nuts and bolts of setting up a plan like you're describing absolutely. We get a lot of those questions to you and the easiest way to do this. Rob is if your employer has a retirement plan like a 401(k) or 403B. Yes, for you to participate through. In addition, you also might get some matching contributions. If you go that route, so I definitely check with your employer first. But if your employer doesn't offer you an automated plan than the next best choice for most people is going to be to set up an IRA with a broker mutual fund company. We list a handful of good ones that we like.

In the article that we've been discussing.

If listeners need some ideas about where to go for that first setting up an account and then it's just a matter of setting up these automatic transfers from your bank and you can usually do that on a particular form from whatever broker mutual fund company you set up your new account with now if you already have an account with somebody just asked that company for their automatic investing formers. A lot of times you can just poker on their website and find that form on your own, and I would just add one final note regarding the timing of all this you know whatever options you choose for implementing the systematic investing plan.

You really want to get started as soon as you can so that you get the power of compounding working for you as long as possible know someday you're gonna look back on these humble beginnings and we all start with humble beginnings and remember when you started going steady and you'll just be amazed at how how that account size has grown over time. Very good. Mark is this something SMI could help with as well. Oh absolutely yeah and I'd encourage you to take a look at this article again. We've got a list. There's a table in the article that lists several different options for setting this up and you know are different strategies that we follow and sound mind investing can be applied in this way, but even if you're not using our strategies just getting that money flow going into a good mutual fund is some type you know that the thing that really surprises people is once you put this on autopilot. You're not thinking about it every month so it tends to sneak up on people when they look six months, 12 months a few years down the road and go wow that really has built up quite a bit while I haven't even really been paying attention. And that's really the whole idea of this is to make it the type of thing where you don't have to pay regular consistent attention. It's just happening automatically in the background your life. Mark, as you know, there's been a huge boom in the fin tech space financial technology with apps like acorns and others that are really geared toward millennial's to help them do just what you're describing. Whether that's in the saving area for short-term needs or longer-term with systematic retirement plan contributions. Do you like those sword. They tend to be a bit more expensive than what we might find in your article yeah you know I think there's a lot of variation so it's hard to paint with a broad brush. I think that the point you just brought up as an important one. Whatever you're looking at whatever planner app or system you want to look and see what are the expenses. What am I paying for this. The way that word doing it through the article that were talking about those transaction fees are very very small if not zero.

Frankly, because a lot of these are no transaction fee funds so it's a very cheap way to do it. That's not to say these others are bad.

You just want to be careful. The other thing I'd be a little bit careful of is a lot of times these apps are geared towards getting you into individual stocks as opposed to diversified mutual funds and so you can run into a lot more volatility when you're just picking one stocker, a handful of stocks versus a diversified fund that's going to be a little bit smoother ride now. Will this is been really helpful Mark. I love the power of compounding that comes in when we invest systematically over the long haul. Thanks for stopping by.

Always my pleasure of Mark Tiller's dinner guest today. You can read more about this in their monthly newsletter and sound mind investing.org. The article is titled going steady. The advantages of the systematic investment plan. Today's broadcast is a reprise addition.

But we think the upcoming information will help you and make you a wise steward of what God's given you so please stay tuned.

You're listening to a best of broadcast of money wise life. This program is prerecorded, so were not available to take your calls today, but you can email us at questions@moneywise.org back to moneywise live on Rob last. This is where God's word intersects with today's financial decisions. Have you ever thought about the fact that your money the way you allocate God's money, tells a story about what's most important to you. Here's the question we all need to ask ourselves, myself included, what story is how were using God's money, saying were telling about us and what's most important to us and doesn't accurately reflect what's really on our hearts will if not maybe we need to make some changes. Maybe we need to think about how we are allocating God's money, so it's a proper reflection of where God is taking us the vision he's given us for our lives in our service to him. Well, that's one of the things we explore in this program and we are so grateful for your calls each day as you ask questions because we know your hearts desires to be found faithful in serving the Lord with his resources he let's go right back to the phones next up Chattanooga Tennessee Monica you're on moneywise like this question is centered around retirement saving for retirement. I was wondering what you felt were on a date Univar like program or policy bars. All three be far saving okay yeah so you are still working. Is that right there correct and how long do you plan to continue to work until retirement at least 6567 okay between 15 and 17 years and you have a 43 be available at work are you contributing to it. Currently, if I am okay what percent of your pay is going in there. Monica, do you know that I cannot believe that doing any matching on that they are there latching like it be sent to a dollar okay and how has that been doing in terms of the performance of the years and doing okay.

I basically encounter starting over because I locked the job years ago when I had to cash in my 401(k) so I feel like I'm behind it thought my retirement go I see is this your only retirement accounts. Given that you had to pull out from the previous one.

80 okay and what have you built up in there so far the tenant out there is a fairly new job. I've only been a little late every year okay very good and you have some margin.

Monica, such that you could increase that.

I know you're asking about the universal life insurance policies will get to that. But regardless of which you chose, you have the ability to put some more away I do for the pandemic out paid out three credit cards. So I'm learning it taken that money and put it toward my for the rebate okay great yeah I like you continuing to add money to the 403B. I might get some help in looking at the various investment options inside the plan just to see if you're properly positioned. You have a good diversified approach to the portfolio that is appropriate given your age and risk tolerance, and you could get some one time counsel from financial professional. Perhaps a certified kingdom advisor there in Chattanooga who could look over the various investment options and just weigh in on whether you should make some changes to the investments that you've selected. At this point. I like the idea of you pushing that up even as much is 15% or to the limit each year to the ability you can.

Just because you are a little behind in terms of index to universal life insurance policy.

I'm not a huge fan I'll say they have their place but basically it allows you to allocate cash value amounts to either a fixed account with a guaranteed kind of return or what's called an equity index account, which is something that's can a mere one of the stock indexes typically like the NASDAQ 100 of the S&P 500. Reason I'm not a huge fan as it mixes insurance with investing which I just don't think is the best way to go for most people, and it can be very expensive compared to just a term policy with the proper coverage you need for a set period of time, and using other investment vehicles like your 43 be so if it were up to me. I just try to get you to put as much as you can into that for three be up to the limit. Make sure you still covering your other priorities, namely giving and make sure you have a healthy emergency fund in your systematically reducing debt but yet putting as much as you can away through that for three be I think is the way to go and we appreciate you listening and calling today.

Let's go out to Dallas Texas. Linda, your next go right ahead. About the 401(k) program every day and I hear you talk about 401(k) and Start out a lot back and we bought property in an and started a business that we don't have a 401(k). It seems like it's real important thing can you guys talk really did you think it is likely reducing that we have a car payment and in a lead we don't keep the credit card balance and the other side just wondered if we should put money back in a 401(k) and also is it secure against you because like how things are going right now in the world. I mean I'm just I'm just a kind of afraid to try just one, asking that she works is your biggest concern regarding the 401(k) the stability of the stock market or something else. I don't now and I just I just I don't know if I said I don't trust that I don't know a lot about having invested in, but I do see that talk about all the time. I'm just kinda wondering what should we have one sure. Well, the reason we talked about a lot is I think we should be saving something for the long term in the stock and bond market with a properly diversified portfolio is proven to be the most affected place over the long haul.

If we look back over the last hundred years. Yup, investments in real property is nothing wrong with that. It's done well and you you could invest in precious metals, but in terms of the stability and the long-term performance properly diversified stock and bond portfolio has performed the best and it's passive, which means you can just let it go and let it grow you whether you not you have professional management. Looking over your shoulder.

It's just the most effective way for people to build wealth over a long period of time in a 401(k) is just really accessible because it's part of the salary deferral and there's often matching so I like the option of the 401(k) in terms of the risk of the stock market, you know, we go through cycles and know they're all different, but the market does always recover. Let's do this.

I'll tackle a few more of your specific concerns right after the break. Pause for a brief break.

This is moneywise a Rob West. This is where God's word intersects with natural light is today back with much more back to moneywise. I got Rob West story about how God been working in your life in this area of your finances. Perhaps you been listening to moneywise will I you just found this or you been listening for years and I got spent at work and you been able to pay off some debt or you started giving your seeing God honor that her, you've really started to process the implications of God owns it all and that's changed everything about how you conducted your financial life. If so, we want to hear about it.

We set up a special email address for you to tell us your stories and in the coming weeks were to have a new feature on the programmer.

We actually allow you to hear from some of our faithful listeners who have been on this journey who have a story to tell.

So here is the email address is my story@moneywise.org my story@moneywise.org if you have a story to tell.

Send us an email and I will be in touch with you to see if we can capture that. Let's go right back to the phones we do have a couple lines open 800-525-7000 off to Cleveland, Ohio, Maureen, what's on your mind today, is my mom and my dad and I can't right now) and no doctors ordering And out it wanted do I need to file On attention yet in three years. I see yeah yeah it's never a bad idea Maureen to check with the tax preparer just did you look at your specific situation or in this case hers to have a professional way and you could find a certified kingdom advisor in the tax and accounting area there in Cleveland by going to our website moneywise.org but I'll just tell you.

Generally speaking of single filers.

Typically, I don't need to file a tax return of their gross income doesn't exceed the standard deduction which is 12,400. The threshold happens to increase over age 65 to 14,050. So if you know, in addition to the pension she receives Social Security and yelp that together then puts her income above those amounts you know that higher threshold of 14,050. Then Yoshi would need to file a return in a tax professional could easily go back file all three years worth of returns for her just to get her current on her compliance with the IRS so I don't think it would hurt to check on that.

But hopefully that at least gives you some guidelines to know based on what income she has, whether or not she would fall above or below that we appreciate your call today very much up to the Chicagoland area. Margie Euronext. Go ahead hi Margie are you with us. You're welcome to take your time were right here and you go right ahead for $114,900. I am prepared to pay for. I don't like the housing bubble read that by 10% and the actual cost to pay more for a property than what are better to wait for the Bible you break on ranking and rent is not over thousand a month and that really good point, but I'd rather not continue to rent Dell is your weekly I can put down a down payment and then there� Actual house with no HOA longer, but a lot more space but just want to get your thoughts. Yeah, very good, Margie. That's a great question asking is this is is somewhat of a no-brainer when you're selling one property moving into another because in the markets you're getting top dollar on the sale. At the same time you're paying top dollar on the purchase. It's a little more challenging and I can understand why you might have a bit of pause as a first-time homebuyer because you're not making the money on the sale and so you're entering this market arguably at very high levels, and clearly the housing market has been on an upswing that really for the last 12 or 13 years since the 2008 housing crisis. With that said, I think there's something to be said about if you're buying the right house, meaning it that your budget you've clearly been a diligent, savory, or not trying to rush this. You got 60,000 built up for the down payment and I think another thing that's working in your favor is, we've got incredibly low interest rates right now and so even if you were to wait and yet we don't know what's can happen with the housing market or the economy made at some point, you know, economies, rollover, and I would expect this to be in a recession at some point in the next few years.

You typically they last anywhere between 18 months and three years but if you are planning to buy and keep this house for a while and I would say a while would be, let's say 10 years or more, then you'd be able to wait that cycle out number one, number two, you're not buying it purely as an investment. You're buying it as a place to live at number three, you can enjoy these historically low interest rates, which probably would not be the case that you know if we were to see interest rates start to head back up as we start to see a little bit of inflation creep up in it weed.

We know that rates will move higher over the next couple of years.

So are you planning to buy and stay in this property for quite a while.

I will never know what I do not have a job for long that I also I don't have. I think I not know I certainly understand. Let me ask a question though. Margie related to your overall budget.

So given you said your pain about a thousand right now and obviously certain things are included in that. Have you looked at, you know, if you were to put the 60,000 down if you looked at what the principal, interest, taxes and insurance payment would be to the best of your knowledge plus any additional expenses. We got a good end understanding of what the utilities would be plus the HOA. Do you think you could be saving money every month and that's okay if you don't know II think that's one other consideration that I would look at. So here's my thoughts.

Number one, we gotta keep your lifestyle months number two we recognize God owns it all. He is your provider.

No one else and you are doing what you need to do and that is to say how can I be a careful and wise steward of what God has entrusted to me making the very best decisions I can. None of us have a guarantee of future income. We trust the Lord for that, and we do the best of our inner power to find where God is leading and you he's giving you a profession that's great got to the good housing market right now. Sounds like your real estate.

So I think the idea here is that you need to keep your lifestyle modest. If you're self employed, I'd encourage you to open a sapphire ring and just start putting some systematic money away to build over time that invested and if you plan to buy this house. Rental prices are high right now.

No housing prices are high interest rates are low, you get a good bit saved up. If you feel like this is the right home for you that I wouldn't have any problem with proceeding. Even given where were at in housing markets like the post a question moneywise at coaches stop by.

I'm in there periodically, as well just tell mother add your app store dates are from moneywise fighting pause for a brief break that much more.

This is moneywise the where biblical wisdom meets today's financial decisions and choices verse about your lawn with us today about West remind you moneywise is listeners do what we do every day to serve you based on your generous support. If you been listening for a while, perhaps you benefited from the program or you'd like to help us to serve others. As we continue to build out to our suite of offerings including our new Alpine or new moneywise community and all the things that we're doing including a new helping hand segment.

I'm really excited about where listeners can help other listers in a desperate financial situation. If you want to invest toward that work would certainly be grateful here so you give quickly and safely to set over to our website moneywise live.org, click the donate button you can give one time or monthly and that we would certainly be grateful but said right back to the phones. Jim is next up in Carmel, Indiana. Good redheads are. Thanks so much for taking my call and interested in how to proceed with our will and wife and I provided income from admired IRAs and long Social Security and we also have five rental properties that you own and how we want to distribute funds from our will to charity, as well as their family members. I just wonder if we should just letter will be probated should be set up some sort of a trust, and how would that work. Yeah well it's just really comes down Jim to whether you would benefit enough to buy a trust to justify the cost and added complexity, not a terrible difference in cost, you would, but will typically would be maybe $500 to set up for the average person wears a trust might run from 1200 to a couple thousand dollars.

Why would you set up a trust well is a few key reasons. Number one would be to manage and control spending and investments.

If beneficiaries are prone to poor money management. Let's say so if you wanted to be able to have certain mile markers or milestones for them to reach our certain conditions under which money would be distributed to beneficiaries. That would be one reason to avoid you mentioned it probate of the trust assets and keep your affairs private because the probate is a part of the public record. This would not trust is a way to you, protect assets from beneficiary's creditors. So you know if you were given consideration of that deal with a privately held business you trust can manage business assets for planned business succession doesn't sound like that's something here and then you can also provide structured income to the surviving spouse that protects the trust assets of four descendents. If you have the spouse remarries or something like that.

It can also facilitate charitable giving. After your death. Now it's not to say that you can't do that through your will, you certainly can, but it's another way to do it, and it can go into effect prior to death. Where is a will start to death, the trust could be put into place if you're incapacitated for any reason the trustee would then begin managing according to the trust agreement up so I think you just need to think and pray through those things and perhaps Jim sitting down with a godly estate planning attorney just to talk through this to see if there's any reason why this would be necessary if you listen to that listing. You say you know what were fine going through probate. We feel like we got everything handled appropriately. We've got beneficiaries designated on our IRAs and and and life insurance policies and we don't think it's necessary in our situation, I would certainly be comfortable with that but if you felt ill will, more peace of mind knowing that these other provisions were in play and it would be worth it to you to set up a trust, then I think you certainly could go that way where I would proceed next if you don't know what an estate attorney I connect with a certified kingdom advisor there in Indiana you could do that at our website moneywise and I got work in the just ask for referral all CPAs will have a godly estate planning attorney that they can refer you to.

In the area. Does that make sense though.

Jim and I just wanted forgo any delay of that probate might bring into the picture.

Yeah. And that would be one reason to use a trust Jim because you will bypass the probate process. It sounds like you know, given that that's important to you, a trust may be exactly what you're looking for to his transfer, the, the assets of the estate in an efficient manner and it would also be done privately so very well could be that that's the option for you. We appreciate your call today. Let's head south to Lakeland, Florida Frederick Euronext on moneywise live go ahead in my car.

I would like my Mike. He went to yes Frederick tell me a little bit about your financial situation, would you be can contributing a lump sum or are you going to allocate a certain amount each month to automatically monthly the right vehicle born.

I long okay very good yeah I like the 529 plan. So think about it like a bit like a Roth IRA in the sense that you wouldn't get a federal tax deduction for the money going in but you would be able to invest it inside the plan and then as it accrues. You'd use the various investments inside the 529 to be able to invest those funds it would grow on a tax-free basis inside the plan and then when your child that the plan is set up for reaches age were here she's gonna head off to college or even up to a certain amount for private K to 12 education.

As long as the monies you for qualified educational expenses, not to determination is pretty liberal, then you would take that money out tax-free if you happen to qualify for financial aid. It would be considered a parental asset which is factored into the expected family contribution it at about 5%, which is much better than if it would be to be an asset of the child and like a custodial account or something like that so it's a very effective way to save for college, Frederick, and if your child gets a scholarship you can take the money out on a pro rata basis equal to the scholarship of the grant, and if they don't use it all. He could be transferred to another child so you can set up multiple 529's and then contribute systematically to each of them. There are a 529's in every state and your state of Florida may or may not be the best option for you given that you don't have a state income tax in Florida you may want to choose a 529 in another state that has better long-term historical performance of its investments in the best way to determine that would be to go to a website that I really like. For this reason it's called saving for college.com saving for college.com you bill to go through tutorial will ask you a series of questions and based on the information you provide will actually make a recommendation on the best 529 plan for your children to settle make sense though yes it does.

I fall another question sure to read yeah I and in this role he got a yes I got it belonged to the Godhead mandate that they said that event economic dialogue so we would not lose money is not a good option. You know like I'm unfamiliar with the Florida prepaid college plan and it's a good one, but in terms of comparing it to the 529 plan. I actually prefer the 529 plan just because I believe you have the ability to accrue more money over time ill as you think about investing this money over the life of your children versus just it, increasing at the college tuition inflation rate.

You know I think you're going to do better over time and have more to put toward all of the college expenses not just tuition and room and board through the 529 so I'd look at both. I wouldn't have a problem with you going either way, but I would for me I would go toward the 529 is the better option.

We appreciate your call today.

Let's head to Ohio Gus Euronext on moneywise live circle redhead taken my call.

Listen to your program and I really enjoyed all the information you give to people but I have one for you. Here I am to be 85 years old and may okay and I live with my my daughter and son-in-law.

My wife passed away two years ago I have.

I was left with a considerable amount of money in the bank. I have insurance policies and I have and I also have a revocable trust for my firm which I have four children and I'm just wondering at this age is. Is it feasible for me to invest some sponges are sitting in the bank going nothing is nothing out of it.

Yes what amounts it if you're comfortable saying Gus what you have roughly an in the bank. It's about 50, 50,000 okay and your income is covered through Social Security alone or other universes Social Security okay and so security is about 21,000 okay and that's enough to cover all of your expenses each month so okay and you have a little bit left over. Okay great well so let's say your expenses are running roughly about 1800 a month. Is that about right. Okay maybe for 12 okay so 1200 a month. You know it I'd love for you to have some of between six and 12 months expenses in the bank liquid six months of the 7212 months would be about 15,000, so I would start by saying this, 50,000 you have available I'd love for you to keep you 15,000 of that liquid and then if you want to invest the rest.

I think you could absolutely do that and visit with our friends@soundmindinvesting.org for largely bond portfolio, but with some stocks well. We appreciate your closer today, very, very much.

Thanks for joining us that's going to do it for us.

Thank you to Amy Clara, Dan and Jim for their wonderful assistance today moneywise live is a partnership between moneywise media join us again tomorrow. Would you