All right we're back life as you -- thanks frank and nowadays we hope you are enjoying what is probably some luck. Very cold weather it's cold. That's it that interesting air guitar and there was a ukulele and -- you're airing -- your air ukulele -- easily you know I'm just so massive whenever I spread my arms that looks like complaining ukulele but it really -- -- really big bass guitarist Nancy that's right. -- folks thought we appreciate you hanging out with us and that we got a lot more information to cover sell -- We talked about our New Year's resolutions so now let's jump into those those those Big Three the typical of -- -- -- homeowner resolutions that we seek creek fire away well folks. A lot of people as you know and you're one of meet prime meats and financial goals for the year. And sometimes -- revolve around your primary home rather realistic goals that you may have. End or financial goals we should say the first what we see a lot of every single year is number one I'm going to start paying extra. On my mortgage every single month this year so people say hey this year -- paying a hundred extra 200 from double my payment you name it. -- they make that commitment that they're gonna pay that mortgage off faster. Well let's talk about how this might be a financial mistake. With the upper keys are with putting the money elsewhere. In especially folks renegade and -- If you don't have the reserves we talked but every single week or at least frequently enough that you should know if your regular listener. We believe you should have a minimum six months with your living expenses but I'm more of I'm a bigger fan of people haven't years' worth. Of living expenses as humane now. During times of emergency here and forcing event six months it's burned up a little faster than six months normally because there's things that are happening and affect your in coming in come as well as maybe expenses going out and times of emergency so. If you don't have the reserves the first thing I'll say is before you pay extra on that mortgage let's bull strip those reserves and make sure that that money's available to. Going beyond that. Take a hard look at your financial plan. You've got to make sure that you -- saving well for retirement if -- if you some of your financial goals are helping kids with college that you're doing that properly. And that's on track. Many many other aspects of financial -- need to be on track before you start putting money. In that house -- it's no longer gonna be liquidity can be moved around -- leveraged if things change in the market. It just gonna be stuck there. In your return your opportunity to save money there is there but it is probably at the cost of where he could be earning more elsewhere. If you've got a 4% industry for example. You're in a typical 25%. Bracket and paying taxes between state and federal. You're only paying an effective rate of 3% cost you three cents on every dollar you have bar. You medial be earning 4567%. In the market somewhere else in a mutual fund hiring or other type of simple investment. Funny safe places to put your money if you could be earning more elsewhere why put it into something works stuck in the deepening -- works liquid so. With that in mind folks resolution number one. Is that -- You know I was going to be said -- I was gonna try to -- -- -- of BP dvd I got to -- a news flash here with the news hey if you're going to if you choose to out. You know if you're long that in the camp I wanna -- is down. And you follow Craig's advice and you've got the reserves are vineyard and then you decide for some reason it makes more sense to pay down do you. Not -- -- to enroll in a biweekly mortgage program and threats of do not pay to enroll in that program so we can give you more details if you -- Hate to enroll one of those programs system profits under her kidneys -- -- utterly out trying to get a little fancy here with a that -- The tunes sound effect and you know is correct as close was the was jarring like I wanted but it was a nice subtle reminder that there's an important announcement coming up beat beat beat okay. What's number -- mark. Number two is -- at CE number two is I would fix up this old house and get it all remodeled we do right. I'm gonna get it right bottle at the lady back gas company they done the dirty egos and cricket it's so funny bit. People call all the time and say you know that is what gives us all remodeled our mama or I -- get -- -- because you can track the exact this thing at all pit in my old house. That's an issue are going to be on HGTV coming up soon anyway folks. Here's the thing people get into this and say okay this is its time and get the house all fixed up we're going to be the remodeling project William Clinton off. Before you do any of this take a hard look at what your long term plans are in decide in my really in a state is home long enough to get a return my investment both in resale. And in my living conveniences are improvements. On this type of investment is many of the home improvement projects that people spend money on these days don't necessarily return a great are a -- there's not a great return on investment there. But they'll say in market -- -- elaborate on this a little bit. But if you before you anything else of course take a hard look your planes and secondly. Is this remodeled -- talking about. In a fit the scope of the general neighborhood and location of the home what other homeowners in the area are doing are you in an area where there are a lot of older homes and their being. Modestly maintained it to be able to continue live in the in the they're not being remodeled and upgraded and prove constantly because there's some neighborhoods have been completely renovated as a whole neighborhood work. Old palaces are now. Is nice inside zany -- home you could build and that's the common. Theme throughout the neighborhood that help threesome but if you're one of those people who were really funny girl charming home. Brittany -- generals coming going down. You're probably not gonna get a return on the investment may be at all so those are important aspects mark what else would people want to consider when thinking about putting a lot of money. In remodeling or fixing up a particular home whether -- at a street and just they're averaging all right so number one as work with a mortgage -- to identify if it's even financially viable for you so first -- -- -- number two is. Deal with the real state professional. Work with a realtor to give you a very tight analysis of what the improvements you want to make what they would add enough value to your home. Then the third step is going to be if you decide to go forth both of those -- now. And you decide to go forward then you're gonna wanna work with AM. You wanna start your contractor list make sure that you get checked out at least two or three get referrals for them that make sure you. Plan -- plan and then planned so more those -- the steal that from our friend Michael Holmes was he says. Plan plan and then plan some more you can never go too cautious when you get a -- remodel project and remember the most important thing is. That you're gonna get the high quality work on time in fact done in a fashion it will you'll be happy with. Don't go for the cheapest price and every -- project because it can bite you in detail are we get the last one coming up after the break folks life as you and stay tuned for more. Five folks we are back like as you noted. We're talking about resolutions -- those resolutions that folks make. Although intended of course. Trying to get ahead financially trying to improve life often times it comes to real estate and other resolutions for that matter. All the short sometimes says we discussed before the break. Lot times you hear people say at the beginning of the year him and pay extra my mortgage every month of repayment. The mortgage on faster and take my bonus checks and put on -- mortgage you name it Tony that that's likely and the state. And that you need to think twice before you put that extra money in that. Home rather than the liquid assets other types of investments. Pay close attention -- your financial -- in these before you make that decision. The bitumen -- fix this old house of get it all remodeled up all nice will folks before you pour -- main house plan ahead like we talked about. And make sure that it makes sense in your area for that particular home to. Have those remodeling items completed. Third item on the list of resolutions that we see oftentimes are misguided and that is number three years before rates jump up on Bennett refi to a fifteen year loan. Fourteen year long for that matter or some other type of shortening up that term. Folks here's the thing. You can't short term he can get ahead by doing so sometimes make sense often times it doesn't. We need to talk about the same thing we mentioned on number one. These resolutions what is your over a financial planning situation. How well if your plan looking for the future. Is your money going into the right places because by doing that fifteen year loan you're going to be -- -- slain in a matter of deciding to experiment you'll be forced to picture month. And if you do that that money could be going elsewhere for a bigger returns. Also emergencies do happen people get set back off their plans that's a neat thing about a plan you set it up as best he can and needs to be able to be modified. If you at the turn and -- change directions really quick well. If something doesn't go as ES plan to -- years overall goals for the year you mean I wanna be forced to have to pay that higher payment. I have no longer term -- have a lower -- and the fall back on oftentimes it's a protection factor there to begin before you put something into an asset that lacks liquidity. Make sure that you think it through and it that your overall financial plan marketing and added that no good stuff and I think it dovetails. Very nicely into our our next discussion about when you plant retire. I'm 1800 -- is old design am already Ali's little -- -- got its gonna be later in life I mean I'm probably in retirement late 60s70 range some like them. And I'll probably continue to be actively involved in some type of business matter even on into my. Whatever age Adam -- around her -- and around -- and around you and as the old old man so we know one thing and tell easier definitely analogy here. And so -- I've already got the Seattle Pacific. Okay so what this is this is got the money -- money magazine and I think people reading that instance and out responding to money magazine may have some impact on the numbers but you're but you're like that you're on a listener so much of my bet most of you fall right in some of these categories by age so before 6035%. Of the readers their target retirement -- -- before sixty. On sixty to 6434%. 656923%. Seventy or older 8% those numbers. Now they deserve a lot of folks who haven't really done the math that's just in the they throw -- out there that's my guess I would agreement that I encourage you folks and I know you work with a financial planner. The only way that you can guarantee you have a chance to achieve your financial goals is to work with them. Professional they can help you guide you help guide you on the path you've got to have a diversified approach to your investments and that means. Not all in real estate. Not -- and bonds. Not on qualified retirement plan. Not all I mean you've got to be diversified folks if you want us if you want to achieve our retirement goal especially if it's -- before sixty retirement goal. That's why we're here that's why we do to show. And -- one. It's time. It's time for him should he stay or should you go away. If you didn't catch the gist of what should steer she do you go is well -- into another show if we're jumping right into that -- from Chicago Illinois emailed the following question. I have a 289000 dollar balance at five and an eight and seventeen years left on a twenty year -- the house is worth 350. To 400000. Should I refinance or sit tight I'm not moving for a long time. Go go go wanna you can refinance and you can save money no doubt about it gets seventeen years left on the twenty year note. Illogical potential step would be to do a fifteen year -- knock a couple of years off substantially drop that rate. Should be -- something in the threes without paying any closing cost the key for any of you out there are gonna do move like this don't give much of fees and cost you're going to be paying a lot of principal. When a shorter term loan and a paying much of the easiest slight Hillary will not pay off so. First and foremost try to do no cost loan to zero cost on that does not mean -- -- not paying any you know painting it closing -- pockets. Or rolling in and alone it means that lenders absorbing all the -- costs and expenses to get the -- -- completed. And not rolling in in your financing so. Fifteen year be an option or doing another twenty or even a thirty depending on her over a financial planning goals. Either way you could lower your rate without paying any closing cost so it's a no brainer for one to two. All right want out I wanna make sure you let us know when you goes like -- they want to went. -- -- -- right so Craig moving on down the list we have but next let's talk about that that that retirement. You're gonna retire you probably considering -- someplace to live that might be different than you were. Currents. -- residents might be different we got some some scrape suggestions for a second city's. What exactly are second city strength I don't know at least they're waiting all my second cities are those they're there at those urban. Locations that are of a population of a 152. Left. 500000. So they have a lot of the benefits and -- at the components of of urban dwelling art scene etc. but not quite at the scale or the traffic and cost scale. Of those big city so we've got five worry that pressure we did a -- hit those. Hit the money list best places retired based upon. Availability of those amenities and also. Affordability -- number and while there are no particular but we've got Raleigh, North Carolina population 431000. The -- number of people over 5025%. -- median home price 200000. A median rent is a thousand bucks in the cost of living index is 93 theory affordable place to live. Pittsburg Pennsylvania. 300000 population now. Coming -- at just 33% of the population is over fifty in the median home prices. A 150 granddad. And guess what folks when we come back we're this year the other three cities that made it this year's list. Of money magazine's most. Affordable second CD and live in. I think you -- -- stages.