Big Demand for Boomerangs

How do you forgive a dead man, particularly when he's her grandfather Brian Dahlen in a brand-new podcast called grandfather. I hope to find out it over to the grandfather subscribed to retirees are getting strange phone calls these days. Not from pranksters old boss to come back hi Rob West for the last two years or so.

Millions of workers have left their jobs looking for better opportunities that it's putting retirees in great demand. Talk about that first today that we have some great calls lined up taking your life calls today because we're pretty this is moneywise life goal is for your retirement decisions, due in part to the pandemic, and increasing work from home opportunities folks have been residing in historic numbers will that's led to an employment gap at all experience levels from the mail room to the board room that employers have yet to fill a recent report by the US Chamber of Commerce calls this a workforce crisis and says quoting now the most critical and widespread challenge facing businesses is the inability to hire qualified workers for open jobs they need to fill unquote. There are now more than 11 million open jobs in the US nearly twice as many as the number of unemployed workers but at the same time there are more than 15 million retirees between the ages of 55 and 70 so it's not surprising that employers would look to those retirees as one solution to the worker shortage if they can get them to retire. There's even a name for retirees returning to the workforce, boomerang employees, and in many cases hiring back the boomerangs is actually preferred over taking on younger entry-level employees, retirees, especially recent retirees already have the skill set needed for the job and experience in solving problems.

They've also proven that they are dependable and loyal. There's even a financial incentive for employers to hire boomerang workers. They tend to have lower training costs and greater productivity Cornell University study compared the work experience of 2000 boomerangs against new hires. The boomerangs did better than their younger counterparts, especially in positions requiring high levels of management and administrative skills.

But why would retirees return to a job they've already decided to leave well.

Some do it for financial reasons. They simply need the money is today's high inflation rate eats into their buying power. Others discover that retirement isn't all it was cracked up to be in. They feel unfulfilled or bored. So many are choosing to reenter the workforce recent survey by resume builder found that more than 1/3 of retirees have considered going back to work and one in five have actually been called by their former employers asking them to come back and offering not just money and perks, but greater job opportunities as well.

Employment experts say the high demand for retirees gives them a definite advantage in these negotiations and they know that they can be choosy about what conditions they'll accept and just because retirees get calls from their former companies doesn't mean that's where they end up that survey also revealed that less than half of retirees thinking about going back to work would consider their past workplace nearly 2/3 said they look for opportunities somewhere else they can do it too because again the pandemic has enabled millions to work from home who didn't have the opportunity before employers have accepted the fact that many jobs can be done and done well anywhere where there's a Wi-Fi connection. You don't necessarily have to be a recent retirees to benefit from this trend either. Many employers are offering training opportunities especially technology training to those who been out of the workforce for longer periods of time.

The great resignation is giving retirees opportunities. They've never had before. Without having to go look for them.

In many cases, they just need to keep the resume and LinkedIn profiles. Up-to-date employers are coming to them. So if you're retired and thinking about going back to work. How do you decide what's best for you while answering a few questions. First, can help. Do you want to work full-time work just part-time.

How flexible do your hours need to be working from home. Many people are found, they can pretty much set their own hours as long as the job gets done on time and also to think about compensation. If you're receiving Social Security benefits but haven't reached full retirement age, yet your benefits will be reduced one dollar for every two dollars you earn above 19,560 you get that money back after you reach full retirement age at which point you can earn any amount without your benefits being reduced. So the pandemic led to the great resignation, which led to a big increase in meringues's there's a sentence you never thought you are coming up with some great questions lined up calls because we're prerecorded West and this is moneywise on for so grateful to have you listening to moneywise live on our team is off today take time away from the studio to join the family so don't call in, but we got some great questions lined up in advance.

Let's head right back to the phones.

Pat is in Florida and Pat, how can I help you today. I have mortgage earlier this year we have.

Note that we ordered our credit report from all three companies and I need to start you out on that one event closet soft inquiries have five soft inquiry will enhance three sockeye are a constant account review inquiries three. My question should we freeze all her account at all different credit reports and she we freeze our accounts with what is really two separate issues in the soft inquiries where your credit file is being accessed either because you are pulling it yourself for informational purposes or a company is accessing it. Perhaps a company you already do business with the check your credit periodically. You don't initiate that they're doing it just to determine whether or not to extend you an increase in your limit, or something like that. None of those are to have any bearing on your credit score.

It's only the hard inquiries where you authorize a lender to pull your credit file for the determination of whether or not they want to extend you or will extend you credit and the terms of which they'll do so. So the fact that the soft inquiries are listed there is not of any concern to me and that's very normal and it's not affecting you in any way now separate from that is the question of should we freeze our credit files and I don't ever think that's a bad thing mean certainly if you been notified that your accounts have been compromised or you had identity theft and think it's a no-brainer.

Apart from that it's really just you know, do you want this extra measure of security whereby if anyone tries to open an account in your name. They would have to have the pin number for the lender to be able to access the credit file and if they were doing that fraudulently they would not have that pin number and thereby they would be stopped in their tracks that's added security. What's the downside well. The only downside is if you're out seeking credit you just have this extra level of security where Juergen need to provide that pin number. I don't think that's too onerous and there's a real benefit there.

If for some reason somebody tried to do something in your name fraudulently so I'm not concerned about the soft inquiries and as to the credit freeze I like it. I think it's great in this day and age were there so much digital fraud going on and there's no cost to do it with any of the credit bureaus and so it's fairly easy to set up great and I don't think it really for us to check our credit scores since were all debt-free know what would be helpful is just to pull those credit reports that I would do that a couple of times a year just to make sure. Now the risk is going to get even lower if you freeze the credits but credit accounts but just to make sure that everything on there is accurate because every now and then there's erroneous information on their and you don't want that to come to roost. You know once you're trying to go out there and borrow some money. It sounds like you may not ever need to again but you just want to get those cleaned up for some reason there's something there that's not accurate.

So that would be the reason to continue to monitor those credit files a couple times a year, but apart from that, it sounds like you all should be good in good shape and I'm delighted to hear that you debt-free, so thanks for checking in with us bad. May the Lord bless you in the season. Let's head to what will stay in Florida and will talk to Mary, go right ahead you're on moneywise live all well that market. I love this question.

Mary, you're never too old to invest in stocks. I think the key. What is your time horizon and what are your objectives. So tell me about the money you would be investing is this money that's kind of extra on the side or is it money that you're actively pulling money out of to live on one of our children by our home.

They moved into a duplex on left with one of the cads and Kelly can't set by our home and never paying $4000 so that we have been investing in and the market that I am wondering how we getting too old now to be left out buying back so I think the key is your time horizon because anything we have in the market. We want to make sure for that portion. We have at least a 10 year time horizon, and if you're in good health of the Lord to reach this money could need to last for a couple of decades so you as you think about this money.

Let's talk for a second. Just about the rest of your financial life. Do you have an emergency fund that's already in place and if so how many months worth of expenses.

Do you have set aside all will will will Dell Company all time… Till you have to weigh it out okay and are you doing all this yourself. You have an advisor there that we don't know how well you like church that we went only distant been investing with him okay what I might look at consolidating all your investments with that one advisor that you have a good relationship with including this extra 4000 a month because what I don't want you doing is having you know things, scattered about where one person doing one thing and one person's doing another.

I'd rather you have a relationship with somebody you trust that you have a good rapport with everything's in one spot and then he can deploy an investment strategy that makes sense for you not taking unnecessary risk, but having enough of a growth component to that portfolio with money, especially that you don't need where it can grow for the future is given as an inheritance, give it away as appreciated stock to a ministry of charity that whatever the Lord so I consider consolidating everything in one place with the end of the day is no problem with you investing and 85 fact, you still may have the bidding of the Lord's plans quite a bit of time left a lot more to accomplish positively.

This is moneywise live biblical was in use for tuning in the moneywise live. This is biblical wisdom for your financial decision.

Lester host our team is not here today were taking some time off, so don't call in lined up some great questions and let's head right back to the phones. Cleveland, Ohio hi Tammy, thank you for your patience can help all the house got hit on. I will look hundred thousand on atypicality. What are your thoughts on me, or selling and buying a smaller house. Connie house usually have to buy six seems like a lot of work I got my house like I did last night. Also, all 50 out. Sure, sure, 50 okay very good so I think the first question is just does it fit into your budget. Not only the mortgage that you got today but also just the upkeep. You know the maintenance on at the expense of know the exterior and maintaining the property and if you don't need that much space you would you be better off downsizing when talk about how you go about that in the second but you talk to me about your budget and hide this current home fits into it a month and 19 will probably with Texas insurance, probably around 2000 okay yeah so that's more than we would want to see me and typically you know what I would like to see is no more than 25% your take-home pay going toward your principal, interest, taxes and insurance which should be about 1150 so you you obviously you can choose to spend more, but that's just going to really hamper your ability to do other things. Cover your expenses have margin to save for the future, not to mention the giving that we love for you to get a building on the front end and just have the flexibility so I think because you're spending that percentage upwards of the almost 50%, 45% or more. I think there's an opportunity here for you, too, right size that so you have to be willing to let go of the home that it sounds like you really love and I've certainly heard you say that, but if you dead. It could put you in a situation where you've got no more manageable budget you got less going to housing, which just gives you more flexibility and that's always a good thing because living within your means is so key to really every financial success. Now you mention smaller homes you think mean automatically you're going to need to know put some money into it. Not necessarily. I think the key is your what square footage do you need if you're downsizing you could in fact downsize to a brand-new home that would need know anything done.

It could be literally no preconstruction purchase. If you wanted to. I think the key is what is your budget. What would allow you to end up with a mortgage payment that is in fact no more than 25% your take-home pay and what would that mean in terms of the area you need to look in the size of home you need to look at and the newness of it in terms of the upkeep and the maintenance. The good news is because this housing market is been so strong, you should be able to get top dollar coming out of your existing home that would allow you to move into that in a smaller home at a lower price. Even if you're kind of paying top dollar for that category of house, but I think at the end of the day you'd want to do a lot of planning to make sure that you are in fact going to be able to get to a place with the smaller home where you're bringing your overall housing category expenses down into a range that's going to give you more flexibility and more margin because if we just make a lateral move and you end up paying too much or there is more upkeep or you have to pump a lot into maintenance and renovation and we really haven't solved the problem. You've just given up this home that you love so I think you gotta do your homework to settle make sense though.I forgot to mention to the way of my money, so any year so okay alright so yeah that that was a net number into your putting you know quite a bit away and that's great.

So II think at the end of the day. You just need to decide guilt you need to take a look at your budget and then first question is you know is there anything you're unable to do because your budget is constrained by 40% of your take-home pay 45% going to housing or are you comfortable you feel like the home and it's not too much upkeep and it's a good investment and now it fits within your budget and if it does, great. Keep it but if you feel like it's either too much house too much upkeep or you need to just bring the total going to housing down that I think you have downsizing is a good thing if you got more than you need, and it's certainly something you take a look at. You may want to connect with one of her moneywise coaches that can help you think through this. Look at your budget and give you some thoughts and counsel, but I think it really comes back to that spending plan. Tammy and just looking at whether or not you feel like you're in a good spot, or if you need to create some more margin to accomplish other goals that I think that should lead you to seriously consider downsizing that we appreciate your call today. Thanks for checking with us that Linda is in central Florida and Linda go right ahead.

I just file for bankruptcy been discharged now and minimal income.

On disability and I am I have minimal income as well. We don't have a anything in saving my question is bankruptcy. What do you what the best thing to do to start rebuilding our credit. Yeah. So as you look at rebuilding your credit after bankruptcy Linda number one. I think the first thing to recognize is just you to see the manager expectations about how long it will take for this to come off your credit report can be 10 years of your file Chapter 7, seven years for Chapter 13 and so is this going to take time, but it can be done so don't get discouraged.

You want to go to annual credit report.com.

Pull your credit reports. Make sure everything is accurate, if not dispute what's there, you'll want to monitor your credit report. Initially you could see a drop of 200 points, but it will begin to improve slowly. Remember, the most recent information impact you the most. That which is further back is in will impact you the least you want to be an on-time pair with anything you are using reduce your credit card use. So if you still have open accounts get those balances below 30%. If they're still out there and if you don't have one, you can always get a secured card where you basically put an amount on deposit. The issue you a credit card against it, that secured by what you have on deposit and then you just make an automated have an automatic charge hit that that's a budgeted expense. Every month the you just automatically pay off in that on-time payment every month is going to reestablish you. You could also look at something called a credit builder loan which is in a where the lender holds a certain amount of money in secured savings and you just make monthly payments and the interest gets paid to yourself that you know is reported to the credit bureau so there are some things you can do. I think you just need to come to be consistent in reestablishing yourself and as time goes by. This score will start to come up in your rebuilding so you guys have a great opportunity to counter re-set everything and just asked the Lord what he would have you to do moving forward. We appreciate your call today checking in with us and all the best, folks, this is moneywise live by the way, that's a great time of year for you to think about your giving and we would ask that you would consider giving to moneywise will do that quickly and securely@ourwebsitemoneywise.org just click that we are entirely listeners low. Thank you were to pause for a brief break will be back much more on moneywise lives you join us today for moneywise live helical wisdom for your decisions. Our team is often recorded because we are taking some time away from the studio which means were not here to answer your call don't call in, but stayed with us because we got some great calls.

We lined up in advance puts it back to the phones right now Carol Stream outside of Chicago, Illinois is Chris and Chris Karen before we are not really a way of renting. We have had real estate in the past but like with children such, we don't have anything right now my question should lead by something or continue renting progress in our life.

Yeah well I heard in your voice, your excitement around the fact that you are debt free.

So how does the idea of taking on a mortgage at this point feel to you is that something that gives you pause or would you be okay with that as long as it fit in your budget. I'd be okay three mortgage. Hopefully look at a constant rate. That's right, and rental prices have been elevated but it's also a red-hot housing market right now unfortunately which means that you're going to be not able to benefit from that on the sale that you could then roll into a purchase. You just can have to enter these, sky high prices, which isn't necessarily a bad thing.

If you plan to stay there. We normally would say make sure you stay put 3 to 5 years, I'd say you know probably 5 to 7 at a minimum, and you know this is kind of where you're going to be for your retirement of the Lord Terry's and you're in good health. This could be a 2030 year home so it sounds like you know you could be in a great spot. I think the key would just be Chris, what you have saved up that you could put toward a down payment and you know can we find something that fits the general location and what your needs are and a lifestyle in a price range that your budget can support an answer that is closure of the down payment.

Probably yes just given that you're currently paying rent and you know we all know what's going on with rental prices these days, so if you were to think about this in terms of what you need to spend to find something comparable would you be able to put a 20% down payment and with the mortgage payment be something that's no sustainable in your current budget to be looked at all that I know very high real market here in the sky got married. If it weren't for the fact that my husband also. Besides, probably move by. First and foremost a highlighter so you know what he done much business retirement. I need to continue and you expect to stay there in the Chicago area, even beyond him reaching the end of this business yet okay what have you spent some time looking at the real estate prices in terms of what you would need to spend for something comparable. We have, and I think we can get something for free $400 less more pain and do you have a down payment. We don't. I we have about 10,000 right now, not near enough so I think that's the challenge is that the last thing I want you to do is to kind of stretch to get into something. Although you set up your saved her one month. That's good. But then you'd kinda be going in without really any equity in given that your real estate prices are at a premium. Right now, you essentially what you have an equity. If we saw cooling in the housing market, because we were bumping up against a recession in a you could find yourself upside down as long as you plan to sell it, that's okay, but it's still not a great place to be and you can have private mortgage insurance on top of that which is good to make it you know a bit more expensive because that's an added expense on top of the mortgage and taxes and insurance that doesn't benefit you at all. So you, my preference would be you continue to rent and save our role as monies probably fairly tight. You don't have a whole lot of margin. So if you're going to save 20% down payment were probably talking quite a bit a runway between now and then.

So yeah, I'm just a little leery of encouraging you to jump into a major purchase like this.

At this point without a whole lot to put toward the down payment. Especially if that's currently your emergency fund so I'd probably say let's continue to rent and then let's see what happens in the next 12 to 24 months with the economy, the housing market before you guys make a move. I don't think this is the time to get in unless you can do it without a much larger down payment and you have now know hundred and 12 month okay yeah I think we just kind of push the pause button continue to monitor the situation. The key will be keep your lifestyle as lean as you can so you can save as much as you can and will reevaluate down the road listen all the best to you and your husband for your great ministry work there in Chicago. We appreciate your call today. Indianapolis, Indiana hi Angela, how can help you live and how the family moved back home my mom to take care of her.

So how's that would need a window in the home equity covered that like a home equity loan better than the likely line of credit discuses got a fixed interest rate. Interest rates are still very low right now. I think the key is enough. It's a needed repair.

It's obvious he can improve the value of this asset that you should build to get back at least the lion share of down the road when you sell it and if it's going to cause damage to the home by you not doing the repair. Obviously that's important because that will deteriorate the value of the home over time. The key is always more borrowing you know is it for an asset that's appreciating yesterday of unity with your spouse and you have to answer that. And you know, ultimately, is this something that you have a guaranteed way to repay meaning. Do you have it in your budget so that you can support the debt service on a monthly basis if you looked at all of that and do you believe that you've got the margin to be able to cover government loan. It may clear out the $8000 that I don't have to worry about and make some excited about that soon so you think that okay then I think that is probably the loan to do and the only other thing would just be can you stagger this and do it over time and pay cash or savings, but if you don't have that ability. The home equity loan is probably the one just make sure you count the cost build that in your plan was try to get it paid off just as quick as you can, but I would be in support of what I'm hearing you ask about Angela. We appreciate your call today. Let's head to the opposite end of the country Southern California hi Gloria, what can I do for you. I'm making out a credit card of $30,000 and very good. So when your husband retires, assuming you can stay on this tracking.

Let's say the house is paid off.

At that point you run a retirement budget to look at what you would need on a monthly basis without the mortgage payment and compared that to the income sources you have okay well I like the idea that we pay that off because that would be the largest expense we could take out of the equation to get your lifestyle down as low as possible. I think the question is just what are your what is your budget going to look like when you get to that point.

Five years from now the house is gone. In terms of the payment. You've got to your emergency fund fully funded you what other expenses are to come off if he's commuting lessor know any number of things. Let's work that budget up and then compare that to the income sources you'll have your continued work if he's gonna begin enough use reach full retirement age than he's gonna begin taking Social Security. Let's see what gap you have on a monthly basis that this retirement account needs to make up the challenges you know if that 200,000. Let's say it's now 250,000 by then the other question would be that typically would only want you to pull off about 10,000 a year and I don't know whether that's good you do what you need in terms of giving you the money you need. So the options there are to try to save more, which means you know, perhaps trimming your lifestyle soon put more toward long-term savings right now or he works a little bit longer or he retires from his current job and finds additional part-time work to supplement so that you can wait and take Social Security later or you know he could bring in some additional income but I like the idea of you all trying to sync up the house pay off between now in retirement.

I don't think you can get huge returns in the stock market anytime soon need on the next few years. Given what we've seen the last decade, so I like the idea of staying with them paying off the mortgage in five years. I think the question is just how can you save more and feel is there a need for him to continue to work or work part time after he retires and those of the things to consider, but it starts with that budget. What is your budget going to look like. Compare that to the known income sources you have in retirement. Call us back if you have further questions. We appreciate it before we wrap up today.

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