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Equipping people worldwide to learn, apply, and teach God's financial principles so they may know Christ more intimately, be free to serve Him, and help fund the Great Commission.
Today on MoneyLife
Friday, August 8, 2008
Chuck Bentley Opens the Email Bag
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For more information, visit the WMBW site. You can also call WMBW for more information, 423-629-8900, outside the Chattanooga area, 800-621-9629 Chuck then answers email questions from listeners. If you have a question for Chuck, just email it to ChuckBentley@Crown.org. Q. I am looking for safe places to put about $200,000 I now have in money market accounts. I’m looking to purchase silver and some gold. I just ran across e-gold/e-bullion services that sound interesting. Do you know anything about these and have any suggestions for their use? – Bill in Red Bluff, California A. When people feel insecure about their currency, they buy gold and other precious metals. That’s happening now in the United States. But as Americans regain confidence in the dollar, gold value will fall. Gold is highly speculative and 70% of it is used in jewelry. Don’t consider it a safe investment. Instead, follow these biblical principles for investing:
All investments have risk; there's no reward without risk. You must decide how much risk you’re willing to take. This depends on your age and stage of life. The younger you are, the more risk you can take. Remember, investing requires a long-term strategy.
Q. My husband accumulated about $6,000 through his previous employer's retirement plan. We’re both in our mid-twenties and don't need the money at this point in our lives. And, we don't want to withdraw it and have to pay taxes on it. Should my husband roll this money over into his current employer's retirement plan or should we roll the money over into an IRA? If we go with an IRA, which type of IRA would be best for us? – Amanda in Woburn, Massachusetts A. I'm encouraged that you've saved $6,000 at such a young age and have the mindset to save and instead of spend. If you put the money into your husband’s current retirement plan, your investment options will be limited but the employer may match deposits into that account. If there’s not a good matching plan, you probably should put the money in a traditional IRA. You can’t move it into a Roth IRA without paying taxes and penalties. For future retirement saving however, A Roth IRA is probably the best option.
Q. My daughter lives at home and has to drive about 35 minutes to school everyday. She needs a different car, and I’m wondering if she can take $5,000 out of her 529 college plan to pay for it. My accountant says it’s legal she can since she’s living at home, but I’m still not sure it’s right. I’m a young Christian, and I want to live by God’s Word. So, I’d like to know your opinion. – Dawn A. It's great that you want to live by God’s Word. Check with the administrator of the 529 plan and find out if transportation costs are covered. If so, there’s no problem with buying the car but it may not be the best use of that money. Remember, a car is a depreciating asset, while education will pay great dividends in the future. See if there’s another way to meet her transportation needs.
Q.My husband and I are trying to follow the Crown Money Map and we have the first step completed. We’ve paid off our credit card debt, and we’re now working towards saving one month’s living expenses. I will be starting a new teaching job in the fall, and we would like to use the majority of my salary to pay off my student loans, which total $30,000 at 6.8%. We also owe around $900 on my car loan. We were hoping to buy or build a house in about a year, but we just don't know if that’s reasonable. What do you think? – Trisha in Elida, Ohio A. Congratulations on the step you’ve completed! The Crown Money Map is designed to show you how to experience true financial freedom. Pay off your car loan first. Use the money you free up and any extra salary to pay on your student loan. Start a savings account, once you’re past three month’s living expenses, start saving for a home. You need to save 20% of the home's cost to use as a down payment. I recommend buying an existing house instead of building your first time out.
You can email Chuck anytime with your questions and comments at ChuckBentley@Crown.org. He'd love to hear from you! |
Investing in Precious MetalsPrecious metals are very volatile, speculative, and high-risk investments for the investor with a strong heart and cash only. |
Best and Worst Investment OptionsIt is important to realize that investing is not an exact science. |
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Saving and Investing for CollegeIt is never too early for parents to begin to plan for their children’s college education. They need to be informed and pray for God’s wisdom. |
Investing in IRAsIf there is no other retirement plan available to investors, the IRA is a good alternative. |
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Other Resources: |
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Chuck kicks off the program reminding listeners about the upcoming live on WMBW radio in Chattanooga, Tenn., on Tuesday, August 19th. Chuck and Howard Dayton will participate in a WMBW Town Hall Meeting.
