Nineteenth century author Ambrose Bierce once said, Death is not the end. There remains the litigation over the estate. Humor aside, dying without a will is a sure way to leave your loved ones a legal mess in the probate court and family feuding over who gets what. But you can spare them that difficulty. We’ll explain today on MoneyWise.

So let’s get into the reasons why you need to draw up a written will if you haven’t already, and along the way we can dispel some of the misconceptions about wills.

Without a will, it will be up to probate courts to determine how your estate will be handled upon death. State law will determine who gets what, and that may be contrary to your wishes.

PREPARING A WILL IS AN ACT OF LOVE TOWARD YOUR LOVED ONES

Maybe the biggest reason that you need a will is that it will reduce the likelihood of family disputes after you’re gone. In a will, you can leave specific instructions as to who gets what, potentially eliminating all the squabbling.

It’s true that your heirs could still have hard feelings even if inheritances are clearly spelled out, but a will isn’t just a set of instructions. It’s a document that can express not just your intentions, but your reasons behind them.

Our friend Ron Blue spells this out clearly in his book,Splitting Heirs. Simply dividing up your assets equally might be fair, but it isn’t necessarily biblical. Ron says, Wisdom can create wealth, but wealth almost never creates wisdom.

One child may not be capable of handling money, or another might have much greater needs than your other heirs. So explaining why you’re dividing things a certain way can also help eliminate family fighting. Ron also says that if you love your children equally, you’ll treat them uniquely.

There are other reasons to draw up a will. It’s a great way to itemize your assets. Without a specific list of your holdings and possessions, the probate court could take months or years sifting through your financial records.

Another good reason to draw up a will is that it can help you provide for heirs with special needs. If one of your heirs is too young or immature to manage money, you can place restrictions on the inheritance with a will. You can also do that with a living or revocable trust.

A WILL ALLOWS YOU TO DECIDE WHO WILL CARE FOR YOUR CHILDREN

There’s one more really important reason for having a will, and this one’s often a real sticking point for couples with children. A will enables you to name a guardian for your children. This is one of the reasons that some parents procrastinate in making out a will, because it forces them to decide who will care for the kids should something happen to them. That’s not a pleasant thought and quite often, it’s a tough decision to make.

MISCONCEPTIONS ABOUT WILLS

Turning now to some of the misconceptions about wills, the one you hear most often is, I don’t need one. But we just talked about how a will allows you to name who’ll care for your children if something happens to you. Without a will, the state decides who raises your kids as well as who gets all of your assets.

Another misconception is that your spouse automatically gets everything you have, so you don’t really need a will. That’s the case most of the time, but different states have different rules.

For example, your state may require that your assets be divided equally among your spouse, children or grandchildren, whether you wanted that or not. So you can’t assume your spouse will inherit everything. You can avoid all that by having a will in place.

Okay, our last myth is, drawing up a will is too expensive. The truth is, writing a will is one of the least costly things that attorneys do. Many of them charge a flat fee to write a will or other basic estate planning documents. The average cost for drawing up a will is around $500.

Of course, you can do it even cheaper by filling in the blanks at one of those online legal form sites. That may work just fine, but an attorney can help you address issues that may not come up with the do it yourself approach.

And of course, you can find an attorney or estate planner who shares your values when youlook for a Certified Kingdom Advisor at MoneyWise.org.

LISTENER QUESTIONS

On today’s program, Rob also answers listener questions:

●What is the purpose of work (working for a living)?

●What is an ideal amount to have saved in a 401k at age 48?

●How can you move money from a 401k into a Roth IRA, and would that make sense?

●How do you determine what to do with your money after becoming debt free?

●What is the best way to learn the basics of budgeting and managing money?

RESOURCES MENTIONED DURING THIS PROGRAM

●Find a Certified Kingdom Advisor

●Your Money Counts by Howard Dayton (book)

●MoneyWise App

Remember, you can call in to ask your questions most days at (800) 525-7000 or email them [email protected]. Also, visit our website atMoneyWise.orgwhere you can connect with a MoneyWise Coach, join the MoneyWise Community, and even download the free MoneyWise app.

Like and Follow us on Facebook atMoneyWise Mediafor videos and the very latest discussion!Remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking theDonate tab on our websiteor in our app.

To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29

Nineteenth century author Ambrose Bierce once said, Death is not the end. There remains the litigation over the estate. Humor aside, dying without a will is a sure way to leave your loved ones a legal mess in the probate court and family feuding over who gets what. But you can spare them that difficulty. We’ll explain today on MoneyWise.

So let’s get into the reasons why you need to draw up a written will if you haven’t already, and along the way we can dispel some of the misconceptions about wills.

Without a will, it will be up to probate courts to determine how your estate will be handled upon death. State law will determine who gets what, and that may be contrary to your wishes.

PREPARING A WILL IS AN ACT OF LOVE TOWARD YOUR LOVED ONES

Maybe the biggest reason that you need a will is that it will reduce the likelihood of family disputes after you’re gone. In a will, you can leave specific instructions as to who gets what, potentially eliminating all the squabbling.

It’s true that your heirs could still have hard feelings even if inheritances are clearly spelled out, but a will isn’t just a set of instructions. It’s a document that can express not just your intentions, but your reasons behind them.

Our friend Ron Blue spells this out clearly in his book,Splitting Heirs. Simply dividing up your assets equally might be fair, but it isn’t necessarily biblical. Ron says, Wisdom can create wealth, but wealth almost never creates wisdom.

One child may not be capable of handling money, or another might have much greater needs than your other heirs. So explaining why you’re dividing things a certain way can also help eliminate family fighting. Ron also says that if you love your children equally, you’ll treat them uniquely.

There are other reasons to draw up a will. It’s a great way to itemize your assets. Without a specific list of your holdings and possessions, the probate court could take months or years sifting through your financial records.

Another good reason to draw up a will is that it can help you provide for heirs with special needs. If one of your heirs is too young or immature to manage money, you can place restrictions on the inheritance with a will. You can also do that with a living or revocable trust.

A WILL ALLOWS YOU TO DECIDE WHO WILL CARE FOR YOUR CHILDREN

There’s one more really important reason for having a will, and this one’s often a real sticking point for couples with children. A will enables you to name a guardian for your children. This is one of the reasons that some parents procrastinate in making out a will, because it forces them to decide who will care for the kids should something happen to them. That’s not a pleasant thought and quite often, it’s a tough decision to make.

MISCONCEPTIONS ABOUT WILLS

Turning now to some of the misconceptions about wills, the one you hear most often is, I don’t need one. But we just talked about how a will allows you to name who’ll care for your children if something happens to you. Without a will, the state decides who raises your kids as well as who gets all of your assets.

Another misconception is that your spouse automatically gets everything you have, so you don’t really need a will. That’s the case most of the time, but different states have different rules.

For example, your state may require that your assets be divided equally among your spouse, children or grandchildren, whether you wanted that or not. So you can’t assume your spouse will inherit everything. You can avoid all that by having a will in place.

Okay, our last myth is, drawing up a will is too expensive. The truth is, writing a will is one of the least costly things that attorneys do. Many of them charge a flat fee to write a will or other basic estate planning documents. The average cost for drawing up a will is around $500.

Of course, you can do it even cheaper by filling in the blanks at one of those online legal form sites. That may work just fine, but an attorney can help you address issues that may not come up with the do it yourself approach.

And of course, you can find an attorney or estate planner who shares your values when youlook for a Certified Kingdom Advisor at MoneyWise.org.

LISTENER QUESTIONS

On today’s program, Rob also answers listener questions:

●What is the purpose of work (working for a living)?

●What is an ideal amount to have saved in a 401k at age 48?

●How can you move money from a 401k into a Roth IRA, and would that make sense?

●How do you determine what to do with your money after becoming debt free?

●What is the best way to learn the basics of budgeting and managing money?

RESOURCES MENTIONED DURING THIS PROGRAM

●Find a Certified Kingdom Advisor

●Your Money Counts by Howard Dayton (book)

●MoneyWise App

Remember, you can call in to ask your questions most days at (800) 525-7000 or email them [email protected]. Also, visit our website atMoneyWise.orgwhere you can connect with a MoneyWise Coach, join the MoneyWise Community, and even download the free MoneyWise app.

Like and Follow us on Facebook atMoneyWise Mediafor videos and the very latest discussion!Remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking theDonate tab on our websiteor in our app.

To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29

Everyone wants to achieve financial freedom. Some do and enjoy its blessings. So what’s their secret? Those who’ve learned to manage money wisely know there’s one absolute, non-negotiable requirement for achieving true financial freedom. We’ll tell you what that is today on MoneyWise.

THE NUMBER ONE KEY

The secret to financial freedom is this: Live below your means and keep doing that for a very long time.

THE BATTLE IS LARGELY MENTAL SPIRITUAL

Now, certainly, living below your means involves budgets and bank accounts, but the process actually starts in your head. You need to recognize that what you think often dictates what you do, whether you realize it or not. So, change your thinking to change your behavior.

In that same way that a low calorie diet with which you feel deprived is hard to stick to,if you feel you’re financially deprived, you’ll eventually start to overspend again.

Why might someone feel financially deprived? The Bible gives us several reasons: greed, envy or covetousness, a lack of faith in God to provide, or any combination of those. But no matter the reason, feeling deprived makes living on a budget difficult when it should be easy.

The solution begins with developing a sense of gratitude for what God has already provided. 1 Thessalonians 5:16-18 says, Rejoice always, pray without ceasing, give thanks in all circumstances; for this is the will of God in Christ Jesus for you.

Next, you must believe that you can learn to live below your means. It might be a challenge but you don’t have to go it alone. James 1:5 says, If any of you lacks wisdom, let him ask God, who gives generously to all without reproach, and it will be given him.

Learning to live on a budget starts in your head, but now it’s time to get your hands involved.

TIPS FOR STICKING TO A BUDGET

Here are some tips for staying on budget:

First, you must have margin. That’s money left over at the end of the month. You no doubt have several fixed bills that come in every month and you pay them without thinking, but start thinking about them.

Is there a way to lower your mortgage payment? Maybe by getting rid of PMI or even refinancing? Can you reduce your heating bill? Find lower insurance premiums? Get rid of cable? Don’t take those bills for granted.

Sometimes all you have to do is ask. Americans are good at many things, but haggling isn’t one of them. So whether it’s a medical bill, household repair or a new dishwasher, ask for a discount. You might be surprised by the result.

By the way, it’s easier to stay on budget if you actually watch what you spend. instead of having a lot of stuff on autopilot. Download the freeMoneyWise appthat allows you to track all of your spending. It will likely reveal things you can easily cut, like Internet subscriptions you’re no longer using. That alone could save you a few hundred dollars a year.

You can also get help setting up your budget from one of ourvolunteer coaches.

Now, there’s another tried and true way you can eliminate that feeling of deprivation and that’s by rewarding yourself. Celebrate small victories along the way to financial freedom.

At the end of a successful week staying on budget, treat the family to ice cream. After you have $1,000 in your emergency fund, maybe go out to dinner. The idea is that it’s okay to splurge now and then, just not all the time.

The same way, try to spread out your spending for small expenditures like haircuts. Instead of getting clipped every 4 weeks, can you go without a haircut for 5 weeks? You’ll probably save almost $50 a year. Every little bit helps.

Now, there’s one more terrific way to fix things if you’re still having trouble living belowyour means: increase those means.

Look for ways to increase your income. Employers are desperate to find and retain good workers these days, so this is a perfect time to ask for a raise, or for more hours.

Maybe you can take on a side job. Or sell all that stuff in the garage so you can finally park the car in there again.

LISTENER QUESTIONS

On today’s program, Rob also answers listener questions:

●How do you find the best refinancing option for your home?

●Is it possible for someone to steal the title to your house? And if so, how can you guard against that?

●Is there a period of time when you are not allowed to access money in your retirement account?

OTHER RESOURCES MENTIONED

●Bankrate.com

Remember, you can call in to ask your questions most days at (800) 525-7000 or email them [email protected]. Also, visit our website atMoneyWise.orgwhere you can connect with a MoneyWise Coach, join the MoneyWise Community, and even download the free MoneyWise app.

Like and Follow us on Facebook atMoneyWise Mediafor videos and the very latest discussion!Remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking theDonate tab on our websiteor in our app.

To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29

Everyone wants to achieve financial freedom. Some do and enjoy its blessings. So what’s their secret? Those who’ve learned to manage money wisely know there’s one absolute, non-negotiable requirement for achieving true financial freedom. We’ll tell you what that is today on MoneyWise.

THE NUMBER ONE KEY

The secret to financial freedom is this: Live below your means and keep doing that for a very long time.

THE BATTLE IS LARGELY MENTAL SPIRITUAL

Now, certainly, living below your means involves budgets and bank accounts, but the process actually starts in your head. You need to recognize that what you think often dictates what you do, whether you realize it or not. So, change your thinking to change your behavior.

In that same way that a low calorie diet with which you feel deprived is hard to stick to,if you feel you’re financially deprived, you’ll eventually start to overspend again.

Why might someone feel financially deprived? The Bible gives us several reasons: greed, envy or covetousness, a lack of faith in God to provide, or any combination of those. But no matter the reason, feeling deprived makes living on a budget difficult when it should be easy.

The solution begins with developing a sense of gratitude for what God has already provided. 1 Thessalonians 5:16-18 says, Rejoice always, pray without ceasing, give thanks in all circumstances; for this is the will of God in Christ Jesus for you.

Next, you must believe that you can learn to live below your means. It might be a challenge but you don’t have to go it alone. James 1:5 says, If any of you lacks wisdom, let him ask God, who gives generously to all without reproach, and it will be given him.

Learning to live on a budget starts in your head, but now it’s time to get your hands involved.

TIPS FOR STICKING TO A BUDGET

Here are some tips for staying on budget:

First, you must have margin. That’s money left over at the end of the month. You no doubt have several fixed bills that come in every month and you pay them without thinking, but start thinking about them.

Is there a way to lower your mortgage payment? Maybe by getting rid of PMI or even refinancing? Can you reduce your heating bill? Find lower insurance premiums? Get rid of cable? Don’t take those bills for granted.

Sometimes all you have to do is ask. Americans are good at many things, but haggling isn’t one of them. So whether it’s a medical bill, household repair or a new dishwasher, ask for a discount. You might be surprised by the result.

By the way, it’s easier to stay on budget if you actually watch what you spend. instead of having a lot of stuff on autopilot. Download the freeMoneyWise appthat allows you to track all of your spending. It will likely reveal things you can easily cut, like Internet subscriptions you’re no longer using. That alone could save you a few hundred dollars a year.

You can also get help setting up your budget from one of ourvolunteer coaches.

Now, there’s another tried and true way you can eliminate that feeling of deprivation and that’s by rewarding yourself. Celebrate small victories along the way to financial freedom.

At the end of a successful week staying on budget, treat the family to ice cream. After you have $1,000 in your emergency fund, maybe go out to dinner. The idea is that it’s okay to splurge now and then, just not all the time.

The same way, try to spread out your spending for small expenditures like haircuts. Instead of getting clipped every 4 weeks, can you go without a haircut for 5 weeks? You’ll probably save almost $50 a year. Every little bit helps.

Now, there’s one more terrific way to fix things if you’re still having trouble living belowyour means: increase those means.

Look for ways to increase your income. Employers are desperate to find and retain good workers these days, so this is a perfect time to ask for a raise, or for more hours.

Maybe you can take on a side job. Or sell all that stuff in the garage so you can finally park the car in there again.

LISTENER QUESTIONS

On today’s program, Rob also answers listener questions:

●How do you find the best refinancing option for your home?

●Is it possible for someone to steal the title to your house? And if so, how can you guard against that?

●Is there a period of time when you are not allowed to access money in your retirement account?

OTHER RESOURCES MENTIONED

●Bankrate.com

Remember, you can call in to ask your questions most days at (800) 525-7000 or email them [email protected]. Also, visit our website atMoneyWise.orgwhere you can connect with a MoneyWise Coach, join the MoneyWise Community, and even download the free MoneyWise app.

Like and Follow us on Facebook atMoneyWise Mediafor videos and the very latest discussion!Remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking theDonate tab on our websiteor in our app.

To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29

Millions of American workers plan to retire this year. Many wonder if they’ll have enough to stay retired. Inflation, interest rates, the stock market and the economy in general all can have an impact on retirement planning. How much does the average retiree need to live on? We’ll tackle that question today on MoneyWise.

The conventional wisdom is that after you stop working, you can live comfortably on 80-percent of your pre-retirement income. Financial planners arrive at that figure for a number of reasons.

WHY YOU GENERALLY NEED LESS INCOME IN RETIREMENT

Once you retire, you’ll no longer be putting 10-percent of your income into your retirement account. And since you’re no longer earning a salary, you won’t be paying 7.65-percent of it in Social Security and Medicare taxes.

You’ll no longer have work-related expenses like travel and clothing. And finally, a portion of your retirement income will come from Social Security benefits.

But a survey of recent retirees by T. Rowe Price found they were living on only 66-percent of their final working salary, and they reported being content.

Granted, those surveyed were described as relatively affluent, but the number is still somewhat surprising. How are they doing it?

It turns out that many of them saved more than 10-percent of their income during their working years. That not only increased the value of their portfolios it also trained them to watch their spending and stick to a budget.

Another huge factor was making it a priority to pay off their mortgage before retiring eliminating what is usually the biggest household expense.

In addition to that, successful retirees have found numerous ways to either cut their living expenses or increase their income. Here are a few examples.

CUTTING EXPENSES:

Some empty-nesters have looked around their unoccupied bedrooms and seen dollar signs. There are services like RoomMates4Boomers and SilverNest that can help you rent out a room in your house. COVID has put a crimp on that idea for the time being but as the pandemic eases it will become a more viable option.

Many retirees naturally take to gardening as a way to get fresh air and spruce up the landscape. It’s not a big leap to put in a vegetable garden, and everything you harvest reduces your grocery bill.

Do you really need two cars once you retire? You can save on insurance, registration and repair costs by getting rid of one of them.

Also, at this stage of life, do you really need life insurance? It’s supposed to replace lost income if you pass. But if the kids are grown and out of the house, you no longer need to provide for them.

And now that the house is paid for, do you plan to continue living there as long as possible? Most retirees want to stay in their homes, and it’s the cheapest place you can live, far cheaper than moving into an assisted living facility or nursing home.

You’re more likely to be able to stay in your home if you make it safe and accessible as you age. Installing grab handles and mats in bathrooms is also a good idea.

Curbless showers and walk-in bathtubs can also extend the time you’re able to care for yourself as you age.

But by far the most important thing you can do to keep living at home is to exercise. Staying fit and limber is a prerequisite for taking care of yourself and staying out of a nursing home.

These ideas can help you retire comfortably and probably on far less than 80-percent of working salary.

LISTENER QUESTIONS

On today’s program, Rob also answers listener questions:

●When is it wise to utilize debt for property investment?

●At what point does it make sense for a young couple to meet with a financial advisor?

●What is the best way to invest $5,000 when close to retirement?

●When does it make sense to cash in government savings bonds?

●What are your options if you’ve hired a contractor to build a house and find that the work is substandard?

Remember, you can call in to ask your questions most days at (800) 525-7000 or email them [email protected]. Also, visit our website atMoneyWise.orgwhere you can connect with a MoneyWise Coach, join the MoneyWise Community, and even download the free MoneyWise app.

Like and Follow us on Facebook atMoneyWise Mediafor videos and the very latest discussion!Remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking theDonate tab on our websiteor in our app.

To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29

Millions of American workers plan to retire this year. Many wonder if they’ll have enough to stay retired. Inflation, interest rates, the stock market and the economy in general all can have an impact on retirement planning. How much does the average retiree need to live on? We’ll tackle that question today on MoneyWise.

The conventional wisdom is that after you stop working, you can live comfortably on 80-percent of your pre-retirement income. Financial planners arrive at that figure for a number of reasons.

WHY YOU GENERALLY NEED LESS INCOME IN RETIREMENT

Once you retire, you’ll no longer be putting 10-percent of your income into your retirement account. And since you’re no longer earning a salary, you won’t be paying 7.65-percent of it in Social Security and Medicare taxes.

You’ll no longer have work-related expenses like travel and clothing. And finally, a portion of your retirement income will come from Social Security benefits.

But a survey of recent retirees by T. Rowe Price found they were living on only 66-percent of their final working salary, and they reported being content.

Granted, those surveyed were described as relatively affluent, but the number is still somewhat surprising. How are they doing it?

It turns out that many of them saved more than 10-percent of their income during their working years. That not only increased the value of their portfolios it also trained them to watch their spending and stick to a budget.

Another huge factor was making it a priority to pay off their mortgage before retiring eliminating what is usually the biggest household expense.

In addition to that, successful retirees have found numerous ways to either cut their living expenses or increase their income. Here are a few examples.

CUTTING EXPENSES:

Some empty-nesters have looked around their unoccupied bedrooms and seen dollar signs. There are services like RoomMates4Boomers and SilverNest that can help you rent out a room in your house. COVID has put a crimp on that idea for the time being but as the pandemic eases it will become a more viable option.

Many retirees naturally take to gardening as a way to get fresh air and spruce up the landscape. It’s not a big leap to put in a vegetable garden, and everything you harvest reduces your grocery bill.

Do you really need two cars once you retire? You can save on insurance, registration and repair costs by getting rid of one of them.

Also, at this stage of life, do you really need life insurance? It’s supposed to replace lost income if you pass. But if the kids are grown and out of the house, you no longer need to provide for them.

And now that the house is paid for, do you plan to continue living there as long as possible? Most retirees want to stay in their homes, and it’s the cheapest place you can live, far cheaper than moving into an assisted living facility or nursing home.

You’re more likely to be able to stay in your home if you make it safe and accessible as you age. Installing grab handles and mats in bathrooms is also a good idea.

Curbless showers and walk-in bathtubs can also extend the time you’re able to care for yourself as you age.

But by far the most important thing you can do to keep living at home is to exercise. Staying fit and limber is a prerequisite for taking care of yourself and staying out of a nursing home.

These ideas can help you retire comfortably and probably on far less than 80-percent of working salary.

LISTENER QUESTIONS

On today’s program, Rob also answers listener questions:

●When is it wise to utilize debt for property investment?

●At what point does it make sense for a young couple to meet with a financial advisor?

●What is the best way to invest $5,000 when close to retirement?

●When does it make sense to cash in government savings bonds?

●What are your options if you’ve hired a contractor to build a house and find that the work is substandard?

Remember, you can call in to ask your questions most days at (800) 525-7000 or email them [email protected]. Also, visit our website atMoneyWise.orgwhere you can connect with a MoneyWise Coach, join the MoneyWise Community, and even download the free MoneyWise app.

Like and Follow us on Facebook atMoneyWise Mediafor videos and the very latest discussion!Remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking theDonate tab on our websiteor in our app.

To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29

The latest Covid variant didn’t stop folks from overspending this past Christmas shopping season. Now it’s time to pay the piper. The credit card bills are starting to roll in, making many wish they’d been more frugal with their holiday purchases. Today on MoneyWise, we’ll reveal the numbers and what the Bible has to say about it.

Lending Tree tooka survey of 2,000 adultsand found that 36-percent of them went into debt during the Christmas shopping season. The average new debt taken on by those folks was $1,250.

In addition, they found that a record 40-percent of holiday shoppers used buy now, pay later financing on some of their purchases. Many of them won’t pay off that debt before the interest free period expires, which means they’ll likely get hit with exorbitant interest charges.

The credit bureau Experian has found that more folks are taking out personal loans these days, and about a quarter of them are doing it for debt consolidation.

Another 10% said they took out personal loans to refinance an existing debt, probably to get a lower interest rate. All of this is an indication that folks are living beyond their means. Instead of paying down debt or saving for purchases, they’re going deeper into debt and that will inevitably lead to more stress.

WARNING SIGNS

And since stress has a way of sneaking up on you, here are some debt-related stressors to watch out for

First, you have nothing or very little in your savings account. You can only afford minimum payments. You pay your bills late or you’ve been denied credit.

All of those things cause stress which can result in depression, anxiety, irritability, even memory and concentration problems.

How do you know when the stress of carrying too much debt is beginning to have an impact? One of the signs you may not think about is lost productivity, either in your work or personal life.

Are you having trouble concentrating? Are your thoughts always drifting back to money, so your work suffers?Maybe you’re not keeping up with household chores. Dishes are piling up or the leaves aren’t getting raked. All of those are telltale signs of stress in your life.

THE BIBLE CAUTIONS US ABOUT DEBT

No wonder Proverbs 22:7 says, the borrower is slave to the lender. Debt really does put you in chains, because debt takes away your freedom and options. And that can manifest itself in any number of ways.

Have you turned down a great job that maybe paid a little less for fear you wouldn’t be able to make your payments?Maybe you’d like to move to a different city, but can’t because of debt?Finances have a huge impact on life’s big decisionsand debt limits your options.

The Bible never calls debt a sin, but it does warn us about it numerous times.

To clarify, we’re really only talking about consumer debt that finances a lifestyle above your means. That’s not part of God’s plan for you.

We only want to borrow when there’s the probability it will result in a gain, such as borrowing to start a business or perhaps buying a homeat the right time.

TAKE ACTION

If you’re experiencing debt-related stress, it’s time to take action. You have two great options:

First, you cancontact one of our volunteer MoneyWise coachesfor help setting up a budget and finding ways to trim spending.

You can also contact our friends atChristian Credit Counseling. They can get your interest rates lowered so you can pay off your debt up to 80-percent fast with a debt management plan.

LISTENER QUESTIONS

On today’s program, Rob also answers listener questions:

●How do you balance investing with paying off debt?

●What options are available to you to lower your mortgage payment?

●What’s the best way to determine how your assets will be distributed upon death?

●What recourse do you have if a debtor is claiming you still owe debts you have already paid?

RESOURCES MENTIONED

●Consumer Financial Protection Bureau

Remember, you can call in to ask your questions most days at (800) 525-7000 or email them [email protected]. Also, visit our website atMoneyWise.orgwhere you can connect with a MoneyWise Coach, join the MoneyWise Community, and even download the free MoneyWise app.

Like and Follow us on Facebook atMoneyWise Mediafor videos and the very latest discussion!Remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking theDonate tab on our websiteor in our app.

To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29

The latest Covid variant didn’t stop folks from overspending this past Christmas shopping season. Now it’s time to pay the piper. The credit card bills are starting to roll in, making many wish they’d been more frugal with their holiday purchases. Today on MoneyWise, we’ll reveal the numbers and what the Bible has to say about it.

Lending Tree tooka survey of 2,000 adultsand found that 36-percent of them went into debt during the Christmas shopping season. The average new debt taken on by those folks was $1,250.

In addition, they found that a record 40-percent of holiday shoppers used buy now, pay later financing on some of their purchases. Many of them won’t pay off that debt before the interest free period expires, which means they’ll likely get hit with exorbitant interest charges.

The credit bureau Experian has found that more folks are taking out personal loans these days, and about a quarter of them are doing it for debt consolidation.

Another 10% said they took out personal loans to refinance an existing debt, probably to get a lower interest rate. All of this is an indication that folks are living beyond their means. Instead of paying down debt or saving for purchases, they’re going deeper into debt and that will inevitably lead to more stress.

WARNING SIGNS

And since stress has a way of sneaking up on you, here are some debt-related stressors to watch out for

First, you have nothing or very little in your savings account. You can only afford minimum payments. You pay your bills late or you’ve been denied credit.

All of those things cause stress which can result in depression, anxiety, irritability, even memory and concentration problems.

How do you know when the stress of carrying too much debt is beginning to have an impact? One of the signs you may not think about is lost productivity, either in your work or personal life.

Are you having trouble concentrating? Are your thoughts always drifting back to money, so your work suffers?Maybe you’re not keeping up with household chores. Dishes are piling up or the leaves aren’t getting raked. All of those are telltale signs of stress in your life.

THE BIBLE CAUTIONS US ABOUT DEBT

No wonder Proverbs 22:7 says, the borrower is slave to the lender. Debt really does put you in chains, because debt takes away your freedom and options. And that can manifest itself in any number of ways.

Have you turned down a great job that maybe paid a little less for fear you wouldn’t be able to make your payments?Maybe you’d like to move to a different city, but can’t because of debt?Finances have a huge impact on life’s big decisionsand debt limits your options.

The Bible never calls debt a sin, but it does warn us about it numerous times.

To clarify, we’re really only talking about consumer debt that finances a lifestyle above your means. That’s not part of God’s plan for you.

We only want to borrow when there’s the probability it will result in a gain, such as borrowing to start a business or perhaps buying a homeat the right time.

TAKE ACTION

If you’re experiencing debt-related stress, it’s time to take action. You have two great options:

First, you cancontact one of our volunteer MoneyWise coachesfor help setting up a budget and finding ways to trim spending.

You can also contact our friends atChristian Credit Counseling. They can get your interest rates lowered so you can pay off your debt up to 80-percent fast with a debt management plan.

LISTENER QUESTIONS

On today’s program, Rob also answers listener questions:

●How do you balance investing with paying off debt?

●What options are available to you to lower your mortgage payment?

●What’s the best way to determine how your assets will be distributed upon death?

●What recourse do you have if a debtor is claiming you still owe debts you have already paid?

RESOURCES MENTIONED

●Consumer Financial Protection Bureau

Remember, you can call in to ask your questions most days at (800) 525-7000 or email them [email protected]. Also, visit our website atMoneyWise.orgwhere you can connect with a MoneyWise Coach, join the MoneyWise Community, and even download the free MoneyWise app.

Like and Follow us on Facebook atMoneyWise Mediafor videos and the very latest discussion!Remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking theDonate tab on our websiteor in our app.

To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29

Lots of folks are hoping that 2022 will be better than last year, but can investors afford to be that optimistic? Many analysts will tell you that stocks are overvalued right now. Does that mean we’re heading for a serious market correction? Investing expert Mark Bill joins Rob West today to help answer that question.

Mark Biller is executive editor atSound Mind Investing.

One of the core appeals of Sound Mind Investing is that they provide an investment framework that isn’t built on forecasting. That’s unusual, because most of the investing worldisdriven by forecasts.

Instead, SMI relies primarily on trend-following strategies, which means we don’t have to continually try to figure out what the market is going to do next. That’s a good thing, because most forecasts end up being wrong anyway.

However, Mark Biller notes that the main vulnerability of trend-following strategies happens around market turning points, when the market is transitioning from one long-term trend to a new one.

So in theirJanuary SMI newsletter, he outlined the reasons why SMI thinks the market is likely to experience one of those big trend changes this year and why investors may want to consider additional safeguards.

HISTORICAL CONTEXT

Over the past two to three decades, and certainly since the Financial Crisis in 2008, the Federal Reserve has increasingly taken actions that have caused investors to believe that the Fed will rescue them any time the financial markets start to slide. We’ve seen the Fed step in over and over again to rescue the financial markets when they fall, by cutting interest rates and initiating Quantitative Easing policies that support asset prices and investors.

While the early examples of this go all the way back to 1987 and 1998, this Fed intervention in markets became a more-or-less permanent feature after the Financial Crisis in 2008. Every significant market decline over the past dozen years has been met with quick Fed intervention, which has caused every recent downturn to be short-lived and shallow. Investors haven’t had to deal with a sustained bear market in more than a dozen years. Therefore, we now have a whole generation of investors conditioned to buy every market dip because the Fed won’t let markets fall.

The past dozen years has shown that the Fed could essentially get away with constantly stimulating financial markets without there being any immediately obvious negative consequences. This article explains why we think that may be changing.

WHAT HAS CHANGED?

When the COVID crisis hit two years ago, the Federal Government provided massive fiscal stimulus directly to individuals and businesses. That was a game-changer.

Big picture, the Fed’s quantitative easing support of the past dozen years tended to stay within the financial system. In other words, it inflated asset prices but didn’t create the broad consumer inflation that many expected it to.

When COVID hit and the Government put trillions of dollars directly into people’s hands, that money went straight into the regular economy. And we’ve seen the impact of that as inflation has soared. That Government spending did exactly what it was intended to do, which was stop the most significant global recession in generations dead in its tracks. But it also reversed the 40-year disinflationary trend and unleashed the first bout of significant inflation that this generation of investors and central bankers has had to grapple with.

IMPACT OF INFLATION

Mark contends that inflation is the game-changer.

Most investors agree that a significant driver of this huge 12-year stock bull market has been the constant liquidity provided by the Fed. Now the Fed is explicitly telling investors that they intend to take that liquidity away by stopping their asset purchases and eventually raising interest rates. That’s a big change to the market environment. Every time the Fed has tried to pare back the liquidity they provide to the markets over the past dozen years, the stock market has experienced a significant decline.

So that’s the obvious implication of inflation the Fed is having to rapidly change their policies due to inflation running hot.

The less obvious follow-on effect is what happens next if the stock market drops 20% at some point this year. Since 2008, 20% has been roughly the Fed’s pain tolerance that’s the level that has caused them to step back in and start supporting the stock market again.

But all of those prior cases occurred when inflation was super low. That’s why inflation is potentially the game changer today. If the market falls and the Fed races in to support investors as they have in the past, they risk pouring gas on the inflationary fire. For the first time in a long time, the Fed is going to have to balance fighting inflation against supporting asset markets. Investors could be in for a surprise, because it may be harder for the Fed to ride to the rescue this time around due to inflation pressures.

FACTORS THAT COULD CAUSE MARKET DECLINE

The first potential catalyst for a market decline is slowing economic growth. The smi article explains why they think we’ll see weaker growth data as we get into the second quarter of this year.

The second potential catalyst is the fact that we have an unfavorable political calendar ahead. SMI has done research in the past that shows the six months leading up to mid-term elections are by far the worst six months, on average, of each four-year political cycle. Not only is the average return in these pre-mid-term periods worse than the rest of the cycle, but there is a much higher rate of significant declines during these periods. This part of the cycle stretches from May-October of this year. While SMI wouldn’t normally put much weight on that by itself, the fact that this timing coincides with all of the other catalysts gives it a bit more weight.

The third is the looming fiscal cliff. This year, the federal deficit is forecast to decline by a huge amount nearly 4% of U.S. GDP. Reducing those deficits is probably the right thing to do, but it’s clearly another market support that is being removed this year. Looking around the rest of the world, all of the largest countries are dramatically reducing their spending. So this massive global tailwind for financial markets is rapidly disappearing.

And the last catalyst is perhaps the most concerning, and that is the tightening of monetary policy by the Fed discussed earlier. THE most important investing lesson of the past dozen years is that modern financial markets are driven by central bank liquidity. Every time the Fed has tried to cut that liquidity back, the stock market has stumbled. It’s hard to see why that will be different this time.

HOW TO PREPARE

How investors should prepare depends on what their investment posture looks like now. SMI strategies already have some defensive capabilities built in. So SMI investors likely do not need to take significant additional steps to protect their portfolios. However, SMI included aseparate articlein the January newsletter that discussed several easy ways to add defensive protection to their portfolios.

For listeners who aren’t following SMI strategies, the goal here is really just to make them aware that a significant change to the market environment may be looming.

Mark contends that the risks are significant enough to warrant shifting focus away from maximizing gains which has been the posture of most investors for the past year-and-a-half toward minimizing risk.

Beyond that, if you already have a fairly defensive portfolio, you may not need to change anything. If you have an aggressive portfolio with lots of growth stocks or other riskier assets, you should probably at least think about how you would handle a 20% or greater correction in those prices.

However, most investors who are employing a well diversified,long-termdollar-cost averaging strategy probably won’t need to make any big changes, provided they’re not close to retirement.

But if they are concerned, they can tweak their allocations to be a bit more conservative.

The biggest challenge is for those who are either already retired or getting close to retirement. They don’t have as much time to recover from bear markets.

HOW TO GET MORE CONSVERATIVE

If you choose to make your investment portfolio more conservative, Mark says the easiest way to do that is to reduce the allocation to stocks and increase the allocation to bonds. Beyond that, tilting toward value stocks rather than growth stocks could help. Also, consider more diversification into things like real estate, commodities, even a small amount of gold.

You can read more about changes coming in SMI’s article, Winds of Change Are Blowing: Casting a Wary Eye on 2022.

LISTENER QUESTIONS

On today’s program, Rob also answers listener questions:

●What factors determine whether it’s wise to purchase a vacation property?

●What is the best way to use the proceeds from the sale of an inherited home?

●How do you manage a Roth IRA with a previous employer when changing jobs?

Remember, you can call in to ask your questions most days at (800) 525-7000 or email them [email protected]. Also, visit our website atMoneyWise.orgwhere you can connect with a MoneyWise Coach, join the MoneyWise Community, and even download the free MoneyWise app.

Like and Follow us on Facebook atMoneyWise Mediafor videos and the very latest discussion!Remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking theDonate tab on our websiteor in our app.

To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29

Lots of folks are hoping that 2022 will be better than last year, but can investors afford to be that optimistic? Many analysts will tell you that stocks are overvalued right now. Does that mean we’re heading for a serious market correction? Investing expert Mark Bill joins Rob West today to help answer that question.

Mark Biller is executive editor atSound Mind Investing.

One of the core appeals of Sound Mind Investing is that they provide an investment framework that isn’t built on forecasting. That’s unusual, because most of the investing worldisdriven by forecasts.

Instead, SMI relies primarily on trend-following strategies, which means we don’t have to continually try to figure out what the market is going to do next. That’s a good thing, because most forecasts end up being wrong anyway.

However, Mark Biller notes that the main vulnerability of trend-following strategies happens around market turning points, when the market is transitioning from one long-term trend to a new one.

So in theirJanuary SMI newsletter, he outlined the reasons why SMI thinks the market is likely to experience one of those big trend changes this year and why investors may want to consider additional safeguards.

HISTORICAL CONTEXT

Over the past two to three decades, and certainly since the Financial Crisis in 2008, the Federal Reserve has increasingly taken actions that have caused investors to believe that the Fed will rescue them any time the financial markets start to slide. We’ve seen the Fed step in over and over again to rescue the financial markets when they fall, by cutting interest rates and initiating Quantitative Easing policies that support asset prices and investors.

While the early examples of this go all the way back to 1987 and 1998, this Fed intervention in markets became a more-or-less permanent feature after the Financial Crisis in 2008. Every significant market decline over the past dozen years has been met with quick Fed intervention, which has caused every recent downturn to be short-lived and shallow. Investors haven’t had to deal with a sustained bear market in more than a dozen years. Therefore, we now have a whole generation of investors conditioned to buy every market dip because the Fed won’t let markets fall.

The past dozen years has shown that the Fed could essentially get away with constantly stimulating financial markets without there being any immediately obvious negative consequences. This article explains why we think that may be changing.

WHAT HAS CHANGED?

When the COVID crisis hit two years ago, the Federal Government provided massive fiscal stimulus directly to individuals and businesses. That was a game-changer.

Big picture, the Fed’s quantitative easing support of the past dozen years tended to stay within the financial system. In other words, it inflated asset prices but didn’t create the broad consumer inflation that many expected it to.

When COVID hit and the Government put trillions of dollars directly into people’s hands, that money went straight into the regular economy. And we’ve seen the impact of that as inflation has soared. That Government spending did exactly what it was intended to do, which was stop the most significant global recession in generations dead in its tracks. But it also reversed the 40-year disinflationary trend and unleashed the first bout of significant inflation that this generation of investors and central bankers has had to grapple with.

IMPACT OF INFLATION

Mark contends that inflation is the game-changer.

Most investors agree that a significant driver of this huge 12-year stock bull market has been the constant liquidity provided by the Fed. Now the Fed is explicitly telling investors that they intend to take that liquidity away by stopping their asset purchases and eventually raising interest rates. That’s a big change to the market environment. Every time the Fed has tried to pare back the liquidity they provide to the markets over the past dozen years, the stock market has experienced a significant decline.

So that’s the obvious implication of inflation the Fed is having to rapidly change their policies due to inflation running hot.

The less obvious follow-on effect is what happens next if the stock market drops 20% at some point this year. Since 2008, 20% has been roughly the Fed’s pain tolerance that’s the level that has caused them to step back in and start supporting the stock market again.

But all of those prior cases occurred when inflation was super low. That’s why inflation is potentially the game changer today. If the market falls and the Fed races in to support investors as they have in the past, they risk pouring gas on the inflationary fire. For the first time in a long time, the Fed is going to have to balance fighting inflation against supporting asset markets. Investors could be in for a surprise, because it may be harder for the Fed to ride to the rescue this time around due to inflation pressures.

FACTORS THAT COULD CAUSE MARKET DECLINE

The first potential catalyst for a market decline is slowing economic growth. The smi article explains why they think we’ll see weaker growth data as we get into the second quarter of this year.

The second potential catalyst is the fact that we have an unfavorable political calendar ahead. SMI has done research in the past that shows the six months leading up to mid-term elections are by far the worst six months, on average, of each four-year political cycle. Not only is the average return in these pre-mid-term periods worse than the rest of the cycle, but there is a much higher rate of significant declines during these periods. This part of the cycle stretches from May-October of this year. While SMI wouldn’t normally put much weight on that by itself, the fact that this timing coincides with all of the other catalysts gives it a bit more weight.

The third is the looming fiscal cliff. This year, the federal deficit is forecast to decline by a huge amount nearly 4% of U.S. GDP. Reducing those deficits is probably the right thing to do, but it’s clearly another market support that is being removed this year. Looking around the rest of the world, all of the largest countries are dramatically reducing their spending. So this massive global tailwind for financial markets is rapidly disappearing.

And the last catalyst is perhaps the most concerning, and that is the tightening of monetary policy by the Fed discussed earlier. THE most important investing lesson of the past dozen years is that modern financial markets are driven by central bank liquidity. Every time the Fed has tried to cut that liquidity back, the stock market has stumbled. It’s hard to see why that will be different this time.

HOW TO PREPARE

How investors should prepare depends on what their investment posture looks like now. SMI strategies already have some defensive capabilities built in. So SMI investors likely do not need to take significant additional steps to protect their portfolios. However, SMI included aseparate articlein the January newsletter that discussed several easy ways to add defensive protection to their portfolios.

For listeners who aren’t following SMI strategies, the goal here is really just to make them aware that a significant change to the market environment may be looming.

Mark contends that the risks are significant enough to warrant shifting focus away from maximizing gains which has been the posture of most investors for the past year-and-a-half toward minimizing risk.

Beyond that, if you already have a fairly defensive portfolio, you may not need to change anything. If you have an aggressive portfolio with lots of growth stocks or other riskier assets, you should probably at least think about how you would handle a 20% or greater correction in those prices.

However, most investors who are employing a well diversified,long-termdollar-cost averaging strategy probably won’t need to make any big changes, provided they’re not close to retirement.

But if they are concerned, they can tweak their allocations to be a bit more conservative.

The biggest challenge is for those who are either already retired or getting close to retirement. They don’t have as much time to recover from bear markets.

HOW TO GET MORE CONSVERATIVE

If you choose to make your investment portfolio more conservative, Mark says the easiest way to do that is to reduce the allocation to stocks and increase the allocation to bonds. Beyond that, tilting toward value stocks rather than growth stocks could help. Also, consider more diversification into things like real estate, commodities, even a small amount of gold.

You can read more about changes coming in SMI’s article, Winds of Change Are Blowing: Casting a Wary Eye on 2022.

LISTENER QUESTIONS

On today’s program, Rob also answers listener questions:

●What factors determine whether it’s wise to purchase a vacation property?

●What is the best way to use the proceeds from the sale of an inherited home?

●How do you manage a Roth IRA with a previous employer when changing jobs?

Remember, you can call in to ask your questions most days at (800) 525-7000 or email them [email protected]. Also, visit our website atMoneyWise.orgwhere you can connect with a MoneyWise Coach, join the MoneyWise Community, and even download the free MoneyWise app.

Like and Follow us on Facebook atMoneyWise Mediafor videos and the very latest discussion!Remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking theDonate tab on our websiteor in our app.

To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29