CARES Act Charitable Deductions

Due to the cold 19 pandemic were not able to get everyone into the studio today so phone lines will not be active but we hope you'll benefit from the best of moneywise live you will find many silver linings in the dark cloud that is the coronavirus rate but there is one that would help nonprofit organizations struggling with donations and bring your 20 2900 pages of passed by Congress last advising you provision available to Rob West shares that with us today were not why here's Rob with passage of tax cuts and jobs that most taxpayers lost the ability to itemize the actions but the recent carriers act takes a bit of the sting out of that one. That's right, Steve, something like 90% of taxpayers no longer can itemize their deductions because the standard deduction was double starting in tax year 2018. It went from 6500 to 12,000 for individual filers and from 13,000 to 24,000 for joint returns. As you might expect that 2017 law also triggered a decline in charitable giving by individuals. Then when you throw COBIT 19 on top of that in the future. The economy has taken well. Nonprofits are really struggling and this comes a time when charitable organizations are needed the most. Exactly with reduced revenue, churches, food pantries and other charitable organizations are being called on more than ever to help those who've been financially devastated by the coronavirus outbreak but Steve, the recent carriers act provided some tax relief for donors and makes it easier to give and save a little money on taxes at the same time so a lot of people might not know about this. How exactly does this little-known provision work okay so as we said most taxpayers can no longer itemize their deductions, but the new legislation provides a one time exception. It's an above the line deduction of up to $300 for cash donations made to qualifying charitable organizations this year. Now interestingly, this provision is only available to taxpayers who don't itemize their deductions.

If you're in the 10% or so taxpayers who are still able to itemize. Well, it's not available to you but everyone else can take advantage of it.

So this year if you make cash contributions to a qualified 501(c)(3) nonprofit organization, you can claim up to $300 of that giving as a deduction. It will lower the adjusted gross income on your 2020 tax return by that much, and reduce the amount you'll have to pay in taxes and you can still claim the standard deduction.

Okay now I in reality that's not a lot of money for the average taxpayer may be $75 or so, saved in the taxes but I'm sure that many worthwhile nonprofits could really use the 300 oh, absolutely. We don't have reliable numbers just yet, but it's safe to say that charitable giving nationwide is down, and maybe dramatically the great recession saw charitable contributions drop by 7% in 2008 that might not seem like a lot, but to many nonprofit organizations that put most of their money into their mission.

7% is devastating and it's not just financial contributions that are down, blood and food bank donations are also down significantly.

Just when they're needed most to help lessen the impact of the coronavirus and how should Christians respond to this donation crisis well the first thing I'd say Steve is don't forget about your local church with services canceled due to social distancing. Many churches are experiencing a drop in giving because collection plates are being passed around. So mailing your tithes or use your churches online giving option if it has one but let me also mention if I might, that we here at moneywise media along with your local Christian radio station that's broadcasting this program could use your support as well. We continue to work hard to bring you spiritual encouragement and financial information to help lessen the impact of the covert, 19 pandemic so we urge you to pray about making a tax-deductible donation to help us and this local radio station provide this much-needed content. Here's the good news. You can take advantage of that $300 charitable deduction.

When you make your gift right great information. Thanks Rob and if you'd like to support this radio ministry.

Let me mention a special gift we'd like to offer you when you visit us online@moneywiselive.org and donate $25 or more will be happy to send you a copy of Michael Bloom's book financial hope and no additional cost. And it's our way of saying thanks donate $25 or more to moneywise media but you need to visit our website to do that moneywise live.will be right back.

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The approach taken by sound mind investing since 1990. SMI has helped tens of thousands of Christians acquire wisdom and confidence in their investment. Regardless of your investing experience how much you have doing that you can learn to be in good will steward in the area of investing more information about SMI and financial wisdom for living well is available online and sound mind investing.you probably have the junkyard. We have a junkyard's and scrap engines and transmissions and tires like you might think it's really potential. Waiting for the right opportunity. It's a headlight or carburetor that could replace the broken one. You know it's the same with people, problems, stresses and situations break us down, add extra mileage and wear us out. God is there. However, to sell recycling givens. God's repair manual says we need to believe Jesus died on the cross he rushed down. Take away the penalty of our sin. Give us new life with Jesus is fresh and positive because the broken has been replaced by you like your hands and times is preventing you from serving God. If you have credit card debt. Christian credit counselors can help through our debt management program we can get out of credit card debt. About 80% faster while honoring your debt info. For more information on how Christian credit counselors can help visit Christian credit counselors.org Christian credit counselors.org or call 800-557-1985, 800-557-1985 pleasure to have you with us today. This is moneywise live times more that other guy, the answers Rob West happy to have with us in the program.

Today, however, we are pre-recorded. We will be taking your calls but we've lined up some calls in advance that I think you'll find interesting, helpful and very very practical.

At least we've tried to make them that way so stick around. This is moneywise. Let's go directly to our phones. Yolanda, thanks for calling.

How can we help you.

I am 27 and YK. I pretty much how mom.

We will probably share it but I was wondering about the Dubai I keep it up and down the river without ability. Yolanda first just I am sorry to hear about your husband's passing. You said that you were able to pay off the house before we get to the 401(k). Tell me about just your spending plan. Do you have enough coming in the way of income to meet your obligations that you put together all of your expenses and income just to see you what you have and get a plan moving forward. We have not my like never had a minor repair that we needed them up with security about hundred direct but right now okay and you have somebody who can walk by you and helping you to make these decisions.

Somebody from church or family member, far less you get a good counsel in the sense that you can roll the 401(k) over there will not be a penalty and I think you should. I would roll into an IRA, but I would look for somebody that can help you manage those funds and basically love the fact that you pay off the house, reducing that you got this guaranteed income source that's a blessing you're living frugally, you've built up your emergency fund.

That's wonderful. And now you're going to have this hundred thousand dollars in an IRA.

We want to manage it according to your goals and objectives on a conservative basis, but it should be looked after by someone who can who is a professional investment advisor or investment professionals. We recommend the certified kingdom advisor designation Yolanda. These are men and women across the country who have earned a credential that is basically speaks to their experience in the business, their competency, their integrity but also that they really understand the biblical worldview of money and can bring that to the equation and so I would go to our website. These people don't work for us. They just attained this credentialing you can find. However, many are in your area there in South Florida. I would interview at least three to moneywise live.org and click find a professional you be able to put in your ZIP Code and whoever you feel like is the best fit for you and I'd really spent some time talking to them. Make sure that you fit, their ideal client profile and that they can manage this well for you according to your goals and objectives and no one else's.

That would be the way that I would go and stop there from a present that clear. Yes, you want I would leave it there for the time being in the 401(k) and once you decide who's going to help you manage this these funds and actually invest them for you with your understanding of how it's being invested. You will help to make that determination. Ultimately, in terms of the investment strategy. They'll implement it for you and that you will of course have access to an online and get either monthly or quarterly statements, but once you make that determination as to who's gonna help you, then you would make that rollover to the IRA. It may be able to stay with Fidelity and a Fidelity IRA or they may want you to move it to another custodian, but there's no reason to do that until you make that determination. Okay. Well, let me play pray for you before you go. I know you've been through a lot.

Father, we just left Yolanda up to you, Lord. She is your child Lord and were just so thankful that you are near to the broken hearted. Thank you that you've given her just even recently.

She spoke to this being able to just open her eyes and see clearly what you have for her in the days of his head, but I just pray that you would give her wisdom you give her great discernment you bring people around her that he can encourage her Lord.

With these decisions that are weighing on her. Just give her clarity as to the next steps forward and whatever just so thankful for you and we trust you with her… In Christ payment. Amen Yolanda thank you very much and God bless you, Willowbrook, Illinois, Eric, what's your question for Rob West and cries out below yeah you talking about the student loan American I recently graduated last year from all now and I do and I wanted no light clothing kind of get okay do you know if you qualify for one of the loan forgiveness programs like the public service loan forgiveness would probably be the most commonly referred to work you work full-time for an eligible nonprofit or public service jobs or teachers loan forgiveness. You know if you qualify for one of those okay right so I think the key for you, then, is probably not going to be loan forgiveness. Are these federal loans okay so the benefit of the federal loans is that you have income-based repayment options available to you and so I think the key for you right now. Eric is to go back to your spending plan just really look at are you tracking the income and expenses and do you have a plan for that I would make sure that's written. Make sure you have a process to control the flow either an envelope system. If you want to be more tactile or perhaps a smart phone system like envelopes for every dollar and make sure you're really dialed in on that. And then of course build in that payment to the student loans and I try to add a little bit extra to it so that you can pay it off even quicker. I don't think it sounds like loan forgiveness is what is going to be what you're looking for but just know that if you come in the hard times are not able to pay the full amount at any point along the way you do have options through the federal loan repayment where you can modify those payments according to your income so that will be a blessing to you, but there's plenty of information out there on the web for you to do some research so you know exactly what you're dealing with, but it all starts with that's been does Erica thank you very much for calling today and if you'd like to call Rob 800-525-7000 is the phone number you also find us on Facebook under moneywise media when objects out there and that way when you pause for a brief break and I will be back with more right after next money and life run on the same track. Unfortunately, sometimes it seems like your money is heading in a different direction from your goal in never enough three keys to financial contentment. Author Ron blue helps you to break down all your financial options to a basic floor and then shows you how to keep it all chugging along in the right direction on the same track never enough three keys to financial contentment available when you click the store button@moneywiselive.org in these uncertain times.

You can replace fear and Michael blue's new book financial help is a hands-on study to help just a short assessment will show you where you are now long before age is financial wisdom and action plan in writing to transform your right now requesting financial support, moneywise live with the gift of $25 more moneywise live.org/so here is my noting that there are Gentiles who belong to me. Which one would expect to find people you meet someone you think they are people in Christ in your thinking what it tells you is not simple for a person like that and not be in Christ, not just suggest that there is goodness, for goodness now all is because he is the person you can just what we really like good people, we are still responding to heart my God something to her today makes you want your understanding of God's way we can help is to join online toddling. While there special offer from that point on. Moneywise, live moneywise live.we're not why phone number please don't stick around much. Gainesville, Ohio and Stephanie.

We appreciate your patience. Thanks for holding on to what you question thank you for your program. My daughter and her husband are looking to do some improvement to their home and they're looking for, like around 70,000 and my husband and I actually could loan that he them. The interest rates are so high right now that I wonder if we would alone that to him like it at 3% rate because my husband always looking to try and find an investment plan, whether it be for the full extent of the loan are the 15 year I think is what they're looking at, or just until the interest-rate comes down to somewhere near that 3%, which I think I will in the future. How would that affect my husband's self-employment.

He is a self-employed contractor who is approaching 62 where stable very stable financially. Sure yet what I wouldn't be really concerned much about how that would affect him on paper. Meaning if you recorded this loan and it no matter what you do if you do extend money to them and needs to be documented and there needs to be very clear communication and needs to be in writing. Everybody needs to sign off on it and if it was recorded that it would be out there for them as owing yet and you know that would just be factored in the think the key for you all really first and foremost is the relational impact just recognizing what if they got into hard times. What if they couldn't make the payments and that's really why you think you need to be very careful as to moving into a situation like this, because even though they have the best laid plans possible if somebody loses a job or comes into a difficult season. Now we've created a strain in the relationship potentially by doing this and remember the whole goal here was you all wanted to help and you know I think that's really the challenge we could run into.

Obviously it also know has you tied up in terms of the funds. Would you be loaning this money out of savings or would you actually borrow yourself to make this look okay and you have that in the form of cash that you could do that with yes okay so I think you just need to really talk and pray through that and just say okay let's go to a worst-case scenario and say they got into a situation financially where they just weren't able to make those payments to us. What would we do.

Would we forgive a portion of it, would we be willing to let them go for a period of time without making payments.

If so, how long and in a those are the kinds of issues you would need to be able to deal with ahead of time so all of that is clear and for that reason I would be hesitant to do that you perhaps you make a gift to them for a certain amount. You know to get them started.

Here's what I would do. I'd really just you and your husband commit to sitting down, praying through it financially. You could certainly do it but make sure you have really everything documented and signed off on, but I would make sure that you really process the implications on the relationship if something were to happen Stephanie were glad you called today and we trust that a work out with you, your husband and your daughter and her husband as well. Just make sure that you get everything in writing. Ellensburg, Washington came in so great to have you on the program what your question well looking out what is right for first-time homebuyer looking at a much current plan was in minimum no deposit but paying extra on the mortgage payment for the first couple years using that savings.

I have while still saving up for long-term are very good King and what's the rush, why would you not wait to make the purchase until you have let's say 20% down my life. Now you know we have a growing family treated and rent in our area is nearly impossible. Going from a two bedroom, two and three bedroom really added to an app that you write out a crib for one of the kid and it will more than double my right. I live in a college town so all the rental owners in the area. They charge a high rent so because college students will pay per room, and even apartments are trailer parks are not really an option because their phone as well and clearly in a college town renting can be challenging. So I get that. I think the idea would be you know what we need to do to get creative Keenan to really make sure were making a wise decision.

Do you need to move a little bit further out of town to buy. Perhaps a smaller place. Do we need to know by with less than we would ultimately like to have in terms of space.

The kids sharing a room. You know those kinds of things to get creative to make sure that if the housing market were to turn down and let's say we can't time the housing market. Let's say after this significant run-up in housing prices you buy at the top and you do that with almost no equity because the lender will give you the money and then you were to be upside down and then you know if you were to have an unforeseen event expense, wiser loss of income.

Now we get back into the situation that many folks ran into back in 2008 and 2009 where the rabbit walk away from homes and they were having major expenses that they didn't foresee so I think the reason we say, let's try to be diligent in saving that 20% down is gives you the equity you need that it avoids that private mortgage insurance and really just put you on a more solid financial foundation. If that's where you need to be and you know that's where your job is and that's where the Lord has you right now, that's fine. I just know that these are principles. This idea of saving 20%, making sure that your payment is and is not more than 25% of your take-home pay of those are guidelines if you want to go outside of them. Just recognize you're putting yourself a bit at risk in terms of you know what might happen and so I would make every effort to keep lifestyle at a minimum really pay close attention to your spending plan, track every dollar coming in and going out. Try to limit any unnecessary spending so that you can be paying down that mortgage just as quick as you can so that you can get yourself in a more in a stronger equity position, and hopefully drop that private mortgage insurance. Just as soon as possible can we appreciate what you guys are up against. To encourage you.

Let us send you a complimentary copy of Howard Dayton's book, your money counts. I think you'll find some helpful and useful information there were glad that you call that we were able to touch base today. Thanks so much we appreciate that you're listening to moneywise love with Rob last time Steve Moore if you enjoyed this broadcast would you do us a favor, which tell a friend and let them listen in as you do and we appreciate your support. You might want to visit us when you visit our website moneywise.org lots of free resources. There can also give their as well by clicking the donate money wisely. I would Rob West will be right back after this.

Please don't. How should we as Christians think about investing. What if we could invest our money in a way that aligns with what we believe that Eventide we believe it is possible to love God and love our neighbor in the very practice of investing we design investments for performance and a better world so you can invest for the future with a sense of wholeness and purpose. We call this investing that makes the world rejoice. More information is available@investeventide.com Christian healthcare ministries enables believers to show love for one another by sharing each other's health costs through CHN's voluntary health cost-sharing programs members uplift each other spiritually and financially. CHN was an eligible option under the affordable care act and a Better Business Bureau accredited charity interested. Learn more by calling 800-791-6225 or online at CH ministries.more hi, I'm Caleb from Moody radio Moody Bible Institute first of the week is found in Isaiah 35, 334 strengthen weak hands and make firm. The feeble knees say to those who have an anxious heart strong fear. Now, behold, your God will come with vengeance. The recompense of God. People come and see. That's Isaiah 35, 334 Moody Bible and student source of the outline and describe any radio to focus on Christ starting with reading God's word that also carries over into father also be there for somebody that might be seeking like this one, 800 DL Moody is oh you like your life to be infused with joy. Would you like to interject an internal dimension into even the most ordinary day on the radio and says you can you discover the treasure principle and a concise powerpack style is newly revised and updated book offers a six step plan to finding the pleasure and eternal rewards of the treasure principle what you discover. Life will never look the same treasure principle is available when you click the store, but moneywise live.use on John's president, Rob is holding a press briefing at the White House to discuss testing for the coronavirus. He says his administration is fighting to protect all Americans that are under Cuomo says several regions of upstate New York shown progress in taming the coronavirus outbreak ready to gradually restart economic activity by the end of the week, Cuomo shut down the entire state. March 22 as the New York City area emerged as a global pandemic hotspot, but the outbreak has been less severe in the state.

Smaller cities and rural areas. The governor said three upstate regions have met all the criteria for opening some business activity after May 15 southern tier Mohawk Valley and the Finger Lakes major stock indexes erase much of their early losses ending mix tadalafil 109 points. The NASDAQ gained 71 this is this is mentioned today. Please ignore this broadcast is a coming information lesson one.

Begin Tyler, Texas Lynn, welcome to the program. What's on your mind, your show every day and have excellent well now when pastor opted out of Social Security.

We went to different people tell us when he said that we are no longer he would no longer be able to get Social Security. Even now he was fully vested before he became a pastor and then we had other people that said that that wasn't the case.

So were just trying to figure out which one you yeah well actually you can as long as you qualify for it.

So remember, let's back up here for the benefit of our listeners as a minister you have the option to opt out of Social Security, meaning you would not pay into the system and therefore you would not be eligible for things like Social Security benefits survivors benefits, Medicare, and the like you have to do it using a very specific form of form 4361 from the IRS. But here's the key is you can't do it just to say I think I can do better in the market you have to have really a biblical basis for it. You have to state what that is. And then if you choose to do that, then you would no longer be paying into the system with any income from your work as a vocational minister that would include your full-time ministry salary and any extra self-employment income you received through your ministerial duties like honorariums for a wedding or funeral but if you are by vocational or you had a job prior or after your work in the ministry. You still have to pay into Social Security on your let's call it secular income. So in the case of your husband. If he was paying into the system and he reached that bar of 40 quarters or 40 credits.

They often refer to the mass of service equivalent to 10 years. Then you or he would be eligible for Social Security and remember it's based on your 35 highest years of earnings and for any years you don't have earnings below 35. That formula would calculate 04. That year, but that he would still be likely eligible for Social Security. Assuming he reached those 40 credits. Does that make sense actually actually that's what we are trying to find out okay so the key there though, would be these these 35 highest years of earnings, which is what determines the benefit and that's what you know he will be penalized on because even though he perhaps got to the 40 credits he would likely have many of those years where he had a zero as his income and so that would pull it down. But again, it would allow him to qualify.

I think the key is to make sure for anyone that does this, that you are really leaning into that retirement income gap in saving an appropriate amount. We usually say 10 to 15% of your monthly income for retirement savings. I bump that up to 20% or more. If you are not contributing to Social Security. You've also got a plan ahead for health costs when I would really be thinking about what you're going to do for healthcare everything from Christian healthcare ministries to even buying the Medicare benefits but in his case, you would probably have access to them and then I also encourage folks to really think about long-term disability and long-term care insurance. You've course, need to have adequate term life insurance as well, but I think the bottom line answer your question is always, he meets the bar even though he's opted out. If he had non-ministerial income. The qualified than he would have benefits what are okay Lord bless you and thanks for call. Thanks Lynn 800-525-7000, Willard, Missouri hey Mike Huckabee help you job all year and all I did go back thousand dollars all about and… Hundred 50,000 in 401(k) and out got quite a bit in my ESOP at my job and I will pay that out over five years and I don't have no idea what to do with my money.

I hear all kinds of things put it here put it there if you thought put it in the hands of banker. You know they could lose on it and I'm just lost what you might tell me about your situation. What is your age and how long do you plan to continue to work on 6162 okay so you're pretty close. And what would you expect to receive over that five-year payout on these, around 700,000.

However, around 800,000 to do something with okay and when you look at your expenses postretirement and you factor in the fact your debt free and by the way, congratulations on that's exactly where you should be heading into this new season of life.

As you look at perhaps Social Security and then you look at the expenses you anticipate being in your retirement budget.

What do you expect that you might need to draw on this roughly 800,000 to support your lifestyle out over five years and 600 a week.

Okay so you expect that that's what you need. Moving forward, not now, but in the future, and so were talking about 30,000 a year you you think roughly somewhat okay start with the good news is that you seems like you're really right on track because when I factor in the 4% rate of return, which is all it is is a rule of thumb that we used to say in that season of life of retirement where you're invested on a conservative basis, but I would say you still have some stock exposure because remember if your health is good. The Lord Terry's you need this money. The last likely for decades. You know, people are living longer, one out of four, 65-year-olds will live another 90s life expectancy. Once you reach age 65 is no 83 or so, depending on your family history and in health, and so forth. So we need this to last a while and so we need to have a growth component to it that we need to be conservative because your focus is income first preservation work out capital preservation. We want to hang on to the money you have, and then we want to let it work for you so it can pay my stream of income.

So, we apply the 4% rule to 800,000 will that would throw off about 32,000 a year which would give you your $600 and ideally you'd never have to touch the principle that the key is how do you invested in, that's really your your primary question I would say that you really need to find an investment professional Mike who can come alongside you. Think about this way all the years you've been working diligently saving and paying down debt you been setting. This money aside and now to take this mistake this $800,000, which is a significant sum of money and just to put it on autopilot somewhere or stick it in a savings account. I I just feel like you can do better.

You can be a better steward of that money and I would seek wise counsel to do that now I wouldn't just talk to the first person and go with the first person comes along I be diligent, take your time and really finding that investment professional who you feel like you have a real good match with in terms of how to communicate with you. Their experience performance history and alignment strategy. All of those issues so I recommend you go to moneywise live.org find a certified divisor in your area. In fact, I find three interview them and then pick the one with the best Mike. Glad that you called today. We wish you the very best in your time and thanks so much moneywise. Be right back after this. This is a very good liar. I am a car guy here to help you understand God's purpose for your life to the eyes of a layman. So what's the motivation of your life is it family or friends or pleasure or sports or pressing everyone around you there. Lots of courage and wonderful things, having nothing to do with winning the lost which should be the motivator of everything you do.

This is not what you do, why you do it that matters. Man looks at the outside, but God looks at the heart. For instance, when you supported ministry is your motivation based on what in the last gaining attention for yourself if it's the latter, you already have your reward is when you given secret with the right motivation God will reward you openly in heaven heaven.

Your job is to guide revival outside the walls of your church by moving everyone here with today closer to Jesus you want to know how easy that is no tomorrow. DW.com here's a great deal more about our money than most of us imagine Jesus is more about our use of money and possessions and about anything else, including both heaven and hell in managing God's money, author Randy Elmore and breaks it all down in a simple, easy to follow format that makes it the perfect reference to look you're interested in gaining a solid biblical understanding of money, possessions and eternity managing God's money is available when you store moneywise live.org you know the seven things not to do with your money and uncertain times, and would you like to know the ways to trim your budget amid the current pandemic get those answers and much more.

When you subscribe to the new moneywise magazine will receive valuable expert articles to follow advice and get access to exclusive podcast episodes and your subscription is free access to the moneywise magazine moneywise.org/sign-up hi I'm John Erickson, and Encouraging Word to especially if you think there's no point to your ships. It comes in Isaiah chapter 48 verse 10 God says testing you in the furnace of affliction for my own sake. I do this… Strengthen you because in ways that may be hard to understand God has put his name on the line when it comes to the trials to test you because the way you respond or react your spiritual benefit. Now there's something going on saying to you. I believe that with my grades, you will persevere through this difficult time estate my attention as I know you love me and you desire to see me glorify does not start your heart and keep persevering with a smile.

God is taking his own good name on your response. This is our final segment of the broadcast, previously recorded.

Thanks so much for us today.

Stick around and enjoy the rest back to moneywise live were timeless wisdom meets today's financial choices and decisions. Let's continue on Fort Myers, Florida, Eve, how can we help you all are working cool like and we better call crime right out type of loan pay for his education and I'm wondering what in the back pipe along with allelic tell me I know nurses are in demand. Eve's have you all spent some time looking at what his employability is what you might expect in terms of paying whether it's comparable to what is earning now or more, and obviously all this plays into the payback.

So tell me about the due diligence you done in this decision are going to call for a nurse practitioner yes and what he might expect to earn coming out and the jobs that are available will act out when he can make here in Florida.

He can probably make around hundred thousand okay and that's more than is earning now yeah around probably 60 right now your cover time. Okay so you will probably would not qualify for financial aid. So you'd be out looking to borrow either from the government or through private loan correct okay. All right.

Well, those would be the options you know we never encourage borrowing and obviously ideally you would look for ways to pay-as-you-go. But I realize that can be challenging. So I think you need to really go into this with a plan knowing that when you come out. You're going to have a significant sum of money really dial back your lifestyle is much as possible so you can borrow it as little as possible. I think the key is to start with the fab son and look at the options for the federal loans that you may be able to earn you. You'll have federal student loans that you could either. Probably the direct unsubsidized but then there's of course private loans there available from banks and credit unions and even some schools that these can have higher interest rates. You don't have as many options for paying them back. Which is why they're often not the first first choice and you'll likely not be able to wait until you graduate to start paying back most of these private loans and so that's why you would typically look for to be qualified for federal student loan so that would be my starting place as you think about this and of course you just know what you're getting in your into in terms of the expected amount that you would need to borrow. Do you think you be able to pay for some of that as you go. We try, but were not enough money $20,000 for three and half to four years of school.

Though thousand dollars monthly capture. No, I understand well it certainly good profession. If you could do, do all of that for 40,000, and again you come out of it, not increasing your lifestyle. As he gets a job but really focusing on paying that back and paying it back as quick as you can.

You think that's of course going to be the key, and so I would begin exploring the various loan options.

Once he knows where he is going to school and you may already know that and look to get access to these federal loans and just borrow as little as you can.

If we wish you the best with that. Thank you very much. Chicago, Illinois Sean, what's your question today sir all 70 widowed all the really really sure I become the great work.

Yet note that money liquid but doubt no and will be worked out. My life and she should be completely risk adverse market downturn have the money and I didn't know that later not approach it with her but give her the best.

I like you know she should be concluded risk-averse because a great and she vocalized any thoughts on this since her husband's passing in terms of what she has in the fact that she as it is at the risk of the market does. I give her any concern.

What she said to this point that that my why want to get involved.

Any idea about any of it. She had a liver. He went through the financial advisor. Obviously hold that money and company and obviously he's a friend of the family, but it's not his best interest. You should apply your money and and note be risk-averse completely because of your age because that's a big account you & your shirts. Well, hopefully that's not the case but I think the key is Sean I am delighted to hear that you're willing to lean into this. I think just really sitting down and being transparent and saying listen, God has blessed you with a significant sum of money to be a steward over and were grateful that your expenses are covered through this stipend doesn't sound like she's pulling anything out of this these investments is that right, not at all. Currently not. But the key is that you need that money there to be able to not only fund her lifestyle if something were to come up, but also in probably the most significant risk right now is the potential for long-term care needs that she would have to at some point go into an assisted living facility need in-home care perhaps a nursing home and we all know that can add up quickly and so I think the key is to make sure that the investment strategy matches that now there's a portion of this that she wants to give away now or in the future or she wants to be able to pass it on it as an inheritance. There's nothing wrong with having a portion of this and a conservative growth mode, but I think as you point out, given her age and given this is all that she has given the significant costs that could come down the road primarily health-related because it sounds like her lifestyle is modest, then I think making perhaps some changes if especially the hundred percent of this is that the risk of the market, I would say absolutely. Some changes are needed so I would just be transparent about that justice that I want to help you navigate the decisions around the management of of this money that God has entrusted to you, and I think right now. Perhaps just and I have nothing to gain or lose from this other than I care about you. I think perhaps your investments are too aggressive but don't take my word for it. Let's go visit with a couple of investment professionals. Review your situation. I'd be happy to go with you if you want and see if we don't need to make a change with regard to the investment portfolio. You can either do that with the existing professional or visit with a couple of others and I think that's probably the best process moving forward for some wise counsel be brought to the table. It would also provide a check and balance against the current approach and hopefully she'll receive that well and in the spirit in which its intended, and the result will be that there be some changes made in a move toward a more conservative posture showing you sound like a caring and compassionate son-in-law. We pray that this will work out well for you. Thanks so much. Yorkville, Illinois Renata, we have just a minute or so, let's squeeze it in. What's your question about 529 plans.

Young children are ready to go to college and I know that one of the options on 529 but my question is that I don't really know you know one of them going to college for whatever reasons are like the money that we know that on our them. Yeah, it's a great question and basically the answer is the money once it goes in, grows tax free like a Roth IRA. You don't get a deduction, but you get tax-free growth so long as you pull it out for qualified educational expenses.

And that's more than just tuition. Now if you don't need the money. The child doesn't need the money if it was because they earned a scholarship. Then you can pull the money out without any penalties in direct proportion to the scholarship award but if they just don't go to school or they have source.

Other sources of funds then you would have to either transferred to another child, or yourself to be used for qualified educational expenses which you can do or you would have to withdraw it now when you withdraw it for anything other than a qualified educational expense. The gains in the portfolio, not your deposits but the amount the earnings that was invested. Those would be taxable. So to be added to your taxable income and then you have a 10% penalty, but that would be the extent of it what you pay that penalty then you're free to withdraw it. So I think the key is you want to put in a based on the college planning that you do the amount you think that would be needed and then you know you have this provision for the scholarship awards and then beyond that you neither have to transfer to another child or pay the taxes and the penalty for not only hope that helps you and now's a great time to be thinking about this. Do your homework on it. There are lots of great websites that will give you information about the various plans that are available and you don't have to use the plan that is in your state, necessarily, you can use out-of-state plants as well. So check them out were glad you called today and were glad that you're listening.

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