S1: Today's version of Faith and Finance Live is pre-recorded so
S1: our phone lines are not open. I have seen all
S1: the works that are done under the sun. And behold,
S1: all is vanity and a chasing after the wind. Ecclesiastes 114. Hi,
S1: I'm Rob West. Life is full of pursuits and ambitions,
S1: each one pressing for our attention like a collage. The
S1: individual pieces may not make sense until we step back
S1: and see the bigger picture. Today we're talking about the
S1: gift of perspective and how viewing our lives through an
S1: eternal lens can change everything. Then we have some great
S1: calls lined up. But we won't be taking your live
S1: calls today because we're pre-recorded. This is faith and finance. Live.
S1: Biblical wisdom for your financial decisions. Well, if there's one
S1: book in the Bible that invites us to zoom out
S1: and take an honest look at life, it's Ecclesiastes. It's raw, reflective,
S1: and unafraid to ask big questions. What's really worth pursuing?
S1: What has lasting value? What are we building and why?
S1: Our new study, Wisdom Over Wealth, explores the book of
S1: Ecclesiastes with these questions in mind. It helps us see
S1: how financial wisdom fits into the broader story of a
S1: life lived for God. I'll tell you how to get
S1: your copy in a moment. In our everyday financial lives,
S1: it's easy to be consumed by the immediate. This week's bills,
S1: that investment opportunity or the looming tax deadline. Every issue
S1: seems urgent. But what if, instead of focusing on just
S1: one puzzle piece, we looked at how it fits into
S1: the whole? What if we could pull back and see
S1: our finances as part of a much bigger story? That's
S1: the gift of perspective. It lifts us out of the
S1: weeds and helps us see clearly. When we understand how
S1: our financial choices connect to our spiritual priorities, we begin
S1: making wiser, more intentional decisions. Ecclesiastes invites us to take
S1: a mile high view of not just our money, but
S1: life itself. The preacher on whom this book is based
S1: says he has seen all the works done under the
S1: sun and found them to be vanity. A chasing after
S1: the wind. Not because work or wealth are bad, but
S1: because when they become our ultimate goals, they leave us empty.
S1: That's a message we need in a culture that's constantly
S1: telling us to buy more, earn more, and do more.
S1: But Ecclesiastes points out that it's all meaningless if disconnected
S1: from God's purposes. This doesn't mean that wealth is meaningless.
S1: Far from it. When we view money through a biblical lens,
S1: we understand that it's not something to be worshipped or hoarded.
S1: It's a tool to be used for kingdom purposes. When
S1: steward had wisely. Wealth can be used for incredible good,
S1: to bless others, to support ministry and to bring glory
S1: to God. That's where Ecclesiastes speaks into stewardship. It reminds
S1: us that we don't truly own anything. Everything we have
S1: is entrusted to us by God. We're stewards, not owners.
S1: And that changes everything. It changes how we think about earnings, saving,
S1: giving and even retiring. It redirects our focus from accumulation
S1: to impact. Instead of asking how much can I gain,
S1: we begin to ask, how can I use what I
S1: have to reflect God's character? That's the heart of biblical stewardship.
S1: Living with open hands, trusting God as our provider, and
S1: using what we've been given for his glory. Ecclesiastes also
S1: teaches us something else that's crucial for our financial lives contentment.
S1: The writer encourages us to enjoy our work, to appreciate
S1: what we have, and to find joy in the simple
S1: gifts of life. It's a call to be present, to
S1: stop comparing and to stop chasing. Whether we're in a
S1: season of plenty or in a season of little contentment
S1: helps us stay grounded. It reminds us that peace isn't
S1: found in having more. It's found in walking with God
S1: where we find lasting peace no matter our financial situation.
S1: So how do we begin to cultivate this perspective? How
S1: do we step back and see our finances in light
S1: of God's larger story? Start by asking some honest questions.
S1: What truly matters to me? What do I want my
S1: financial legacy to be? How can I reflect God's values
S1: in how I manage his money? When you pause to reflect,
S1: you begin to see money not as the end goal,
S1: but as a resource to be used wisely and generously.
S1: Perspective leads to peace because it ultimately leads us back
S1: to God. It frees us from the endless striving and
S1: invites us into a deeper trust in his provision. That's
S1: why we're so excited to make our new study, Wisdom
S1: Over Wealth, available to you through the Book of Ecclesiastes.
S1: This study can help you gain the clarity and confidence
S1: you need to steward your finances with purpose. This month,
S1: when you give a gift of $35 or more to
S1: Faith Phi, we'll send you wisdom over wealth as our
S1: thank you. Just visit Faith Fiq228c5hs to request your copy today.
S1: That's Faith F5. Well, folks, we're going to head to
S1: a break. But let me remind you, we're out of
S1: the studio today. Our team is not here, so don't
S1: call in. But much more to come just around the
S1: corner on faith and finance. Live. Stick around. Thanks to
S1: have you with us today on Faith and Finance live.
S1: We're away from the studio, so don't call in. We
S1: will have some great questions coming up. By the way,
S1: just a reminder. As always, my advice is really general
S1: in nature to help you understand principles around financial decision
S1: making rooted in Scripture. Sure. Always seek professional financial advice
S1: that is geared toward your specific situation. Hey, before we
S1: head to the phones in just a bit, let me
S1: remind you if you've found value in the broadcast, maybe
S1: you've benefited from something you've heard, you've called in, you've
S1: visited our website, and you'd like to be a part
S1: of supporting this work so we can reach more people
S1: with this message of wise and faithful stewardship. Well, we
S1: call those our faith five partners. You can become a
S1: partner quickly and easily on our website, Faith Philly.com. Just
S1: click give as a partner at $35 a month, not
S1: only will you help us reach more people, but we'll
S1: be able to send you as our thank you, our
S1: quarterly magazine, and all of our new studies and devotionals faithfully.com.
S1: Just click give before we head to the phone calls
S1: for today in the news. It comes as no surprise,
S1: but many of the best job opportunities this year will
S1: be in the health sector. That's according to a new
S1: ranking by indeed, the job search portal in the top
S1: 25 jobs based on salary. Six are in the health field,
S1: including veterinarian, physician, clinical psychologist, radiologist, registered nurse and director
S1: of clinical services. Analysts say these professionals are in extremely
S1: high demand and command large salaries. As you might expect,
S1: that demand is expected to grow disproportionately higher than other
S1: job sectors in the years ahead. Of course, health professionals
S1: are in such high demand due to what analysts call
S1: barriers to entry. You have to have advanced medical degrees
S1: to qualify them and for them, and they take a
S1: lot of time, effort and money to acquire. But if
S1: you're thinking about entering the the job force and perhaps
S1: considering as you're a maybe a high school senior or
S1: one is in your life, or maybe you're looking to
S1: make a transition to a new career, this might be
S1: something to think about as you consider not only what
S1: is a great job opportunity today, but what will be
S1: into the future? Assuming that aligns with your passions and
S1: skill set that the Lord has gifted you with? All right,
S1: let's turn to your calls and questions. We're going to
S1: begin in Virginia with Dan. Go ahead sir.
S2: Yes. Thank you for taking my call. My question is
S2: that I'm 73 years old. I'm self-employed, have for 40 years, uh,
S2: and uh, five years ago, uh, we moved out of
S2: our house and, uh, left the house that we owned
S2: completely for my daughter and his her kids because of
S2: the fact that she had thyroid cancer, thyroid was removed. And, uh,
S2: as a result, we were hoping that she could help
S2: us somehow or another. But it seems like she has
S2: just absolutely no energy. So the house should be generating
S2: probably up to $3,000 a month in rent Ryan if
S2: I would have done it, but I'm not getting a
S2: nickel out of it. So it's costing me quite a
S2: bit of money, and I was just wondering if there's
S2: any way I can use have some type of deduction,
S2: tax deferment or deduction with this situation on this house?
S1: Yeah. It's, uh, it's a great question and I'm grateful that, uh,
S1: excuse me, in her situation, you're able to provide that assistance,
S1: but I realize that can be a drain. Absolutely. Um,
S1: and so any, you know, help along the way would
S1: go a long way to helping you to continue to
S1: be able to do this. Uh, you do need to
S1: check with a tax professional. And so I would connect
S1: with a CPA if you'd normally do your own taxes,
S1: maybe this is the year to just get some advice
S1: or perhaps even have somebody, uh, do this for you
S1: if you're providing just generally speaking here for a second,
S1: substantial support for an adult child who's not living with you,
S1: there are potential tax benefits available. Uh, you could claim
S1: them as a dependent under the qualifying relative category. And so,
S1: you know, they have to be your child, which clearly
S1: they are. The child has to have earned less than,
S1: you know, $4,700. And that changes yearly. And then you
S1: have to provide more than 50% support. And unlike a
S1: qualifying child, a qualifying relative does not have to live
S1: with you. And then they can't be dependent anywhere else. Um,
S1: so that would be, you know, one option, uh, you know,
S1: you could also look at other potential tax breaks as well.
S1: And I think that's where exploring this with a tax
S1: professional would probably, uh, you know, go a long way
S1: in helping you explore everything that could be available to you.
S2: Okay. Well, um, I will pursue those, uh, that, that
S2: avenue and see what we can get. You know what?
S2: The outcome of that. Yeah, I do have a CPA
S2: that does take care of my, uh, my professional, my
S2: business books every year. Okay. And, uh, so. And he
S2: knows my situation and he he hasn't offered any type
S2: of ideas or anything like that. Okay. Um, yeah.
S1: Oh, it's going to be limited, but it's at least
S1: worth exploring. And I talked to him about whether or not,
S1: you know, there is an opportunity with the qualifying relative category, but, uh,
S1: keep up the good work, Dan. And, um, I realize
S1: this is a season with expenses up across the board,
S1: not the least of which, you know, is the support
S1: you're providing can be a real challenge. But, uh, I
S1: know it makes the Lord smile when we help those
S1: that we care about and who are going through a
S1: difficult season. Call back any time if we can assist further.
S1: God bless you, sir. Uh, to New Hampshire. Rebecca. Go ahead.
S3: Uh, I have a question about credit scores and how
S3: they're determined. Um, a few years ago, I got divorced,
S3: and we had to sell the house, and six months later,
S3: I had no credit. But thankfully, I always paid my
S3: bills on time. And I kept my records. So a
S3: kind bank helped Help me buy a house or condo.
S3: So I have a, um, I do have that towards
S3: my my credit. And I always pay on time and
S3: I pay all my bills on time. But I have
S3: found over the last several months that my credit score,
S3: which I see on my bank statements, is gradually going down.
S3: It was like at 780 it's down to like 720.
S3: And I was trying to figure out why. And the
S3: only thing that I've been able to ascertain, because there's
S3: no complaints or anything on my credit report, is that
S3: I don't have enough credit, which is doesn't seem right
S3: to me because having a mortgage, especially since my mortgage
S3: and my HOA is half my income, should be enough.
S1: Yes. Uh, well, there's a couple of things going on here.
S1: It's not likely due at least the primary reason to
S1: you not having enough credit. Uh, you know, that would
S1: have prevented you from getting a mortgage in the first place.
S1: It could be any number of things. If you've had
S1: any closed, long standing credit accounts that can have an
S1: impact on your score because it reduces your credit history,
S1: which is one of the pieces of this. It also
S1: could have to do with your credit mix. So the
S1: credit scoring algorithm benefits those who have a different types
S1: of credit, all in good standing. So if you have
S1: revolving accounts like a credit card alongside an installment account,
S1: like a car loan alongside a mortgage, I mean, these
S1: different types of credit, at least based on the algorithm,
S1: would indicate to the lender that you can manage various
S1: types of credit for various purposes. And, you know, be
S1: an on time payer. And so that credit mix benefits
S1: you as well. If you've applied for credit recently, perhaps
S1: even in a shorter period of time in the recent past,
S1: those hard inquiries where you authorized a lender to check
S1: your credit could also be affecting your score. Usually the
S1: primary issue related to credit would be, um, you know,
S1: what's called credit utilization, uh, where you're carrying balances, whether
S1: you charge them up and then pay them off at
S1: the end of the cycle, uh, or you're carrying them
S1: month to month and paying interest. If those balances go
S1: above 30% of the limit, either per individual account or
S1: in the aggregate, that's going to pull down your score.
S1: So I think your, uh, next step is to pull
S1: all three credit reports at annualcreditreport.com, just to make sure
S1: there's not anything there that's erroneous or inaccurate. But, um,
S1: you know, I think if you can prioritize keeping those
S1: balances low and being an on time payer, that's the
S1: very best opportunity for you. Hope that helps. Thanks for
S1: your call. We'll be right back.
S4: We're faith and finance live and we talk about our
S4: telephone number often because we usually are live. But today
S4: the program is prerecorded. So if you hear a mention
S4: of the phone number, please don't call us. But you
S4: can find us online at giphy.com.
S1: Let's go to, uh, Evanston, Illinois. Hi, Colleen. How can
S1: I help?
S5: Hi, Rob. Just got a scary letter from the IRS.
S5: I was the executor of my mother's estate, and she had, uh,
S5: an investment about 350,000. And by the time we divided
S5: it between all of my siblings, we each got about
S5: 65,000 apiece. And my sister just got a letter from
S5: the IRS that because she didn't pay taxes on the inheritance,
S5: that she owes $45,000 in penalties. And I thought an
S5: inheritance was not taxable.
S1: Yeah. Uh, I would get with a CPA to try
S1: to explore this a bit further. It could be a mistake. Uh,
S1: the federal estate tax exemption for 2025, and it wasn't
S1: much lower than this for 24. Uh, was $13.9 million.
S1: What year did she pass away?
S5: 2022.
S1: Okay. Uh, so it wasn't this high, but, uh, it
S1: was it was still very high. And so, you know,
S1: you you shouldn't really have, uh, estate taxes there. And
S1: then from a state standpoint, at least for this year,
S1: I don't know what it was in 2022. Uh, you know,
S1: Illinois estate tax kicks in on estates exceeding 4 million. Uh,
S1: but there is no inheritance state tax or federal. Um,
S1: so that's a little confusing. I mean, there should have
S1: been a step up in basis on the any assets
S1: that were in the estate. And so any capital gains
S1: that would be you would be responsible for would be
S1: for gain and value from the time you received it
S1: as an inheritance till the time you sold it. But
S1: I'm a little confused as to why there would be
S1: any kind of estate taxes here, unless we're talking about
S1: a pretty significant sizable estate. Um, so I would probably
S1: reach out to a CPA. Do you have a CPA,
S1: or did your mom that you could, uh, check in with?
S5: No, she did not.
S1: Okay. What about you?
S5: I do not. My taxes are very simple.
S1: Okay. Yeah, well, I think this is the year to
S1: do it. Uh, just so you can understand, you know
S1: what might be there in 2022? I believe it was
S1: just over $12 million. Um, was the the exempt portion
S1: of an estate as far as federal income taxes or
S1: federal estate taxes were concerned. And for a married couple,
S1: you know, that'd be 24 million. So, uh, you know,
S1: I would love for you to dig a little further
S1: into this. Don't be surprised if you do uncover the
S1: fact that this was an error of some kind. They
S1: do happen, but this is one of those times where
S1: it's going to be absolutely worth it for you to
S1: get a professional involved. And just to understand what the
S1: IRS is saying, they could even represent you as they
S1: follow up, um, and try to get more information and
S1: then either get it rectified or if there is something owed,
S1: understand why and and deal with it. And that could
S1: involve a payment plan of some kind. But hopefully it's
S1: just an error and you don't have anything at all.
S5: Would a CPA be better than a tax attorney?
S1: Uh, I would probably start with the CPA. Yeah, because
S1: they would be very accustomed to dealing with the IRS.
S1: Could could handle this for you and represent you. They
S1: could very easily determine what is owed, if anything, just
S1: based on the 2022 estate taxes. And, um, you know,
S1: that would probably be where I would start.
S5: And could you recommend someone?
S1: Uh, yeah. You know, what you could do is head
S1: to our website. Colleen. It's faith. That's faith. Philly.com. And
S1: right there at the top of the page it says
S1: find a professional and you could look for a certified
S1: Kingdom advisor in the tax area. If you don't find one,
S1: there's far fewer than those in the financial planning and
S1: investment area. Um, then I would just reach out to
S1: any of those in your area and you could ask
S1: for a referral. They would all have a godly CPA
S1: that they work with.
S5: Great. Thank you so much.
S1: All right, Colleen, let us know how this turns out.
S1: We would, uh, we would love to hear from you. Uh,
S1: as you get this resolved. Thanks for being on the
S1: program today. Well, I mentioned those, uh, electronic questions that
S1: come in, uh, regularly. We do love to, uh, tackle them,
S1: and we don't get to them often enough. So let
S1: me try to get a couple more in the mix here.
S1: This one from Stu. He writes I'm 63. I have
S1: about 220,000 for retirement. Do you think it would be
S1: better to finish out my working years contributing to my
S1: 401 K or a Roth IRA. You know, I would
S1: say at this point, uh, you would probably be better
S1: off putting money in your 401 K, uh, making sure
S1: you're maxing out any matching portion of your employer's contributions.
S1: And then the 401 K itself. Reason being, you're probably
S1: at the peak of your earning capability, uh, now, and
S1: your retirement income is likely to be a lot less.
S1: So the idea that, uh, you know, you would go
S1: ahead and get that tax break now and then pay
S1: taxes later, uh, when you pull that money out in
S1: retirement is not a bad idea. Now, I will say
S1: that there was a pretty significant study done. We've referenced
S1: it a few times here on this podcast with regard to, uh,
S1: looking at retirement plans, given the uncertainties of the future
S1: tax code and your retirement earnings, and recognizing that there's
S1: some wisdom in having both the pre-tax retirement account growing
S1: alongside the after tax or the wrath flavor. So a
S1: lot of people have AA4 hundred one K, both pre-tax
S1: and after tax versions, and are wondering how should we
S1: kind of allocate our contributions among the two. And the
S1: study said, you take your age, you add the number 20,
S1: and that's the percentage that you put in the pre-tax,
S1: the traditional version with the balance into the Roth version.
S1: So let's just take an example. If you're 50, you'd
S1: add 22 at 70, 70% of your, uh, salary deferral
S1: contribution would go into that pre-tax 401 K 30% into
S1: the Roth. Now, if knowing that study was there and
S1: that that produced the optimal results for the most people,
S1: if you have 100% in your traditional right now, the
S1: idea that you'd get some working in that pre-tax environment
S1: might not be a bad idea, and that would be
S1: you funding that Roth. So I think you could go
S1: either way, if you like the idea of not having
S1: the required minimum and getting that tax free growth, and
S1: you've still got some time on your side, uh, you
S1: plan to work a good bit longer, perhaps go ahead
S1: and fund those Roth IRAs. I think that wouldn't be
S1: a bad idea at all. Stu, thanks for writing to us.
S1: This is Faith and finance live on Moody Radio. I'm
S1: Rob West. Just a quick reminder. We're not here today,
S1: so don't call in. But we're going to head to
S1: a break and much more coming just after this. Stay
S1: with us. Hey, great to have you with us today
S1: on Faith and Finance Live. I'm Rob West, your host.
S1: Our team is away from the studio today, so don't
S1: call in. But coming up a little later, we'll have
S1: more of your questions right here on the program. Hey,
S1: let me take a moment to mention the Faith fi app.
S1: We'd love for you to download it. Just head to
S1: your app store or wherever you download apps and search
S1: for Faith fi. That's faith, fi. You can manage your money.
S1: You can access the best content in biblical finance podcasts, articles,
S1: and videos. You can also participate in our Faith fi community,
S1: where you can post questions and get answers from others
S1: on their stewardship journey. You'll find it in your app store.
S1: Just search for Faith fi or if it's easier, head
S1: to our website at Faith Philly.com. That's Faith fi.com and
S1: you'll see the app right there on the home page.
S1: Now let's head back to the phone calls we have
S1: lined up. Now let's go out to Lancaster, PA and
S1: welcome Lisa. Go right ahead.
S6: Oh hi Rob. Thanks for having me on and taking
S6: my call. Yes, ma'am.
S1: Absolutely.
S6: So, um, so I'm a single parent, and, you know,
S6: I had to financially start over based on a lot
S6: of different circumstances over the last ten years. And my
S6: question has been about how to wisely and also Semi
S6: aggressively approach either the markets like the stock market bonds.
S6: I'm not sure whether I should be in 401 K
S6: or going into Roth IRA. Just really unclear about how
S6: I can preserve my financial future and also provide for
S6: my child.
S1: Yeah, well, I appreciate that, Lisa. And listen, I know
S1: we go through seasons that can be challenging, and certainly
S1: that includes financially speaking. I think the key is we
S1: get beyond those and you get to a place where
S1: you're at right now where you say, listen, I, I
S1: recognize the importance of putting something aside for the future,
S1: and I want to do that in a way that's
S1: wise and that's great. So what we don't want to
S1: do is when we're trying to play a little bit
S1: of catch up, we don't want to abandon those principles
S1: that we know are time tested and find their roots
S1: in in biblical wisdom. And I'm thinking specifically about Ecclesiastes
S1: 11 two that we want to not put all of
S1: our eggs in one basket, and so we don't want
S1: to throw caution to the wind and and speculate or
S1: get into high risk investments with the hope we can,
S1: you know, make up some for lost time. We want
S1: to still be sure and steady. It's that steady, plodding
S1: approach that we see in God's Word. So the best
S1: way to do that is take however much time you
S1: have and just let's be, you know, mindful about keeping
S1: lifestyle in check. So we create more surplus. And then
S1: let's be systematic in our investing, uh, every month, high
S1: markets and low markets. When the market's down, we can
S1: buy more shares with the same money when it's high.
S1: Hopefully we're participating in some of that upside. But I
S1: think that's the key now in terms of the where
S1: of the investing, we generally say let's start with a
S1: company sponsored retirement plan, especially if there's some matching available.
S1: Do you know if your company has that?
S6: Yes.
S1: Okay. Great. And so like will they match you a
S1: dollar for dollar up to a certain percentage or something.
S6: Yes, I believe I want to say up to 6%.
S1: Okay, great. So that's going to be the a number
S1: one place to go because that's free money. I mean,
S1: so if you put in a dollar and they give
S1: you a dollar up to 6%, that's 100% return on
S1: your money, you're not going to get that anywhere else.
S1: So let's take full advantage of that. That's your starting point.
S1: So now you put in six. They put in six.
S1: All of a sudden you got 12% of your compensation.
S1: You're pay going into a retirement plan. That's great. That's amazing.
S1: Now if you have the ability to do more, that's
S1: where we could just for simplicity's sake, just continue putting
S1: it in the 401 K. The nice thing about the
S1: 401 K, other than the matching is it's it's fairly
S1: easy to manage. They're going to give you a menu
S1: of investments, and you can pick the one that's most
S1: suited for your age and risk tolerance. Um, they probably
S1: even have somebody that's a part of that plan that could,
S1: you know, help navigate that for you and explain which one,
S1: just based on what you're looking for, might be the
S1: best for you at your age and so forth. So
S1: I think that would be a great place for you
S1: to begin. And then I'd love to send you a book.
S1: It's called the Sound Mind Investing Handbook, and it's based
S1: on biblical truth. But it's all about investing. And I
S1: think to the extent you want to do some some
S1: reading on this topic and get a little bit more
S1: educated on, you know, what you're getting into, I think
S1: this book will be a great resource for you. Okay.
S6: Yeah. Okay. Thank you.
S1: Awesome. Uh, you get started in that 401 K. Stay
S1: on the line. We'll get your information here and get
S1: that book right out to you. Thanks for your call today. Uh,
S1: let's go to what? We're going to stay in Pennsylvania. Annette,
S1: how can I help you?
S7: Hi. Thanks for taking my call. Yes, I have a
S7: question about my HSA account. I recently turned 62. I've
S7: been retired from teaching a few years. And am I
S7: able to use my HSA account to pay for my
S7: health insurance premium?
S1: Uh, know, generally, HSA funds cannot be used for health
S1: insurance premiums. Um, once you're over 65, though, uh, you know,
S1: you can use those funds for anything prior to that.
S1: You can't. But keep in mind that HSA funds use
S1: for Medicare premiums could be subject to income tax. So
S1: you're going to want to talk to your CPA or
S1: tax professional just to make sure you understand the implications
S1: of everything. Um, you can also use, uh, you know,
S1: HSA funds for health insurance premiums if you're receiving unemployment benefits. Um,
S1: the only other allowed uses are for long term care
S1: insurance premiums and what's called Cobra coverage. But if you're
S1: under 65 and you don't have one of these, uh,
S1: you know, exceptions here that I'm describing, uh, generally speaking,
S1: you cannot use them for health insurance premiums.
S7: So would the health insurance provided by my employer that
S7: I continue to receive health insurance benefits from? Would that
S7: be considered Cobra?
S1: Uh, no. That's only the the type of coverage that's
S1: available to you. When you separate from your employment. You
S1: can continue your company sponsored coverage for a period of time.
S1: That's the Cobra coverage. But you're still working there, right?
S7: I retired a couple years ago.
S1: Oh, you retired okay. And so are you are still taking, uh,
S1: the advantage of the same, uh, plan, is that right?
S7: Yes. Right.
S1: Okay. Yeah. So I would just check with your CPA.
S1: We just want to make sure we're in compliance with
S1: the the IRS rules and regs and whether or not
S1: that's a retirement coverage or whether it is deemed Cobra coverage,
S1: and therefore would be one of those allowable uses. Uh,
S1: so I would I would check with your tax professional.
S1: Do you normally prepare your own return?
S7: No, I usually use someone to prepare that for me.
S1: Okay. Yeah. So I'd give that person a call, just
S1: kind of go over your specific situation and get them
S1: to sign off on it.
S7: Okay, great. Thank you so.
S1: Much. You're welcome. Thanks for your call today. Let's go
S1: to Chicago. Hi, Ruth. How can I help?
S8: Hi. And I'm a senior citizen. I'm over 65, and
S8: I've been cheated by my insurance agent. I'm not going
S8: to name the company. It's a very well-known company. But
S8: there was a time 5 to 6 years ago, within
S8: one year period, while I was totally standing still, not
S8: moving to other vehicles crashed into me. So first one
S8: sideswiped me because he was trying to move when the
S8: traffic wasn't moving. It was like a parking lot, and
S8: he tried to get around my left and messed up
S8: the left side of my car. The next time I
S8: was stopped at a light and somebody crashed into me.
S8: So do we have to wait for the next thing?
S1: Are you? You sound like you listen regularly. You were
S1: ready for that music and you know what that means.
S1: It does. But I would love to help you navigate this,
S1: because it sounds like your insurance company is raising your
S1: premium for an accident where you were not at fault.
S1: And so there are steps just kind of generally speaking,
S1: of course, they vary by insurance company that you can
S1: take to challenge that increase and hopefully resolve it. But um,
S1: we'll talk about that right around the corner. So, yeah. Ruth, uh,
S1: you stay right there and, uh, we'll take this quick
S1: break and then come right back to you, and then
S1: we'll hopefully get to a few more questions today here
S1: in our final segment. Now, we're not here to take
S1: your calls live today, but we have plenty of calls
S1: that we lined up in advance. And we'll get to
S1: those just around the corner. Don't go anywhere. We're so
S1: glad you've joined us for Faith and Finance Live today
S1: here in our final segment, let me remind you not
S1: to call in because we're not live today, but we'd
S1: love for you to stick around and enjoy the rest
S1: of the program. Now, before the break, we were talking
S1: to Ruth in Chicago. Uh, she had two cars at
S1: two different times. Uh, crashed into hers in both cases. Uh,
S1: she says she was not at fault. She was actually
S1: not even moving at the time. And, uh, the insurance
S1: company has raised her insurance premium, and she says, and
S1: we'll talk about this, uh, labeled her as at fault
S1: for both accidents and wanting to know what to do. Ruth,
S1: did I capture that correctly?
S8: Yes. Yes.
S1: Okay. Yeah. So I think the first issue is, and
S1: it sounds like you may have already done this, but
S1: let's just go through this. You want a pretty detailed explanation, uh,
S1: for that premium increase and confirm whether the increase is
S1: related to the accident or other factors. So, like just
S1: a general rate adjustment or claims history, um, and then
S1: you want to verify what's called the fault determination. So
S1: ensure that if you haven't already, that the insurance company
S1: has recorded a fault and whether they, you know, recorded
S1: that correctly because mistakes can happen and correcting that may
S1: resolve the issue. Now if they have it incorrect, then
S1: you of course want to get the documentation to prove
S1: you were not at fault. That could be a police
S1: report or an accident report showing the other driver was
S1: at fault, if that exists. Um, you know, statements from
S1: the adjuster or photographs, you know, evidence, that type of thing.
S1: And then you you could dispute the premium increase. You
S1: could I'd start with your insurance agent and just ask
S1: them to review the file and politely but firmly explain
S1: that you were not at fault and you believe the
S1: premium increase is unjustified. You could escalate that to a supervisor.
S1: There's probably even a formal complaint process now. Some states
S1: have laws preventing insurers from raising premiums for accidents where
S1: you are not at fault. Illinois is not one of those.
S1: And so you just need to kind of work those
S1: normal channels inside that insurer and try to get to
S1: the right person and department that, you know, could take
S1: a look at this and after you file the formal
S1: complaint and hopefully that internal process for disputes will come
S1: out in your favor. Obviously, if it doesn't, then that
S1: might be the time for you to shop for new
S1: insurance or, you know, something like that. But I think
S1: those are your next steps for any at least that
S1: you haven't taken already.
S8: Okay, but here's the problem too okay. I have shopped,
S8: I have shopped for other insurance. However, even though my
S8: insurance company did not pay a penny on either accident
S8: because the other party was at fault, they reported me
S8: to some central agency that all all insurance companies connect with.
S8: They reported me as being the guilty party, as being
S8: at fault. Yeah. And so anytime when I've tried to
S8: shop for other insurance, it's excessively high.
S1: Yeah. Yeah. well, if something was reported incorrectly, I think
S1: that's where you have a case here. I mean, at
S1: the end of the day, the insurance company can pretty
S1: much do what they want. They can raise your premium.
S1: Even if you were not at fault for either accident.
S1: They may, you know, in their own internal processes, view
S1: you as a higher risk for some reason. But if
S1: they are reporting you either internally or externally or both, uh,
S1: with the the improper fault determination, that might be where
S1: you'd have a case, you know, to again file a complaint,
S1: try to get them to, you know, change that internally.
S1: And if you believe your insurer is acting unfairly, you could,
S1: of course, as a next level of defense, file a
S1: complaint with your state's insurance commissioner, and they can investigate
S1: and mediate the dispute. And that would be really where
S1: you would go from here.
S8: Oh, so there is an insurance investigator.
S1: Well, it's the state insurance regulator, and they oversee the
S1: insurance companies. And, uh, could act on it, you know?
S1: I mean, you're going to find varying degrees depending on
S1: the state of willingness to engage with you and, and
S1: take action on a timely basis. But they are the
S1: place to go if you feel like you're not being
S1: treated fairly.
S8: Okay. Thank you so much and I really appreciate your program.
S8: God bless you.
S1: Thank you, Ruth, and you as well. Uh, to Lakeland, Florida. Hi, Linda.
S1: How can I help?
S9: Hi. Um, I have a property that my my parents
S9: lived on. It was in adjacent to mine, but it
S9: was a separate property. So at any rate, I sold it,
S9: but I'm holding the mortgage on it for myself. In
S9: other words, they're paying me so much a month for it. Um,
S9: do I have to pay income tax?
S1: Uh, well, you would go ahead.
S9: Or what is that? Not inheritance tax.
S1: Yeah. You're talking about capital gains tax.
S9: Yes yes yes.
S1: Yeah, yeah. Uh, yes. If you sell a property that
S1: was not your principal residence. Um, you know, uh, you
S1: will have capital gains tax depending upon, uh, your income
S1: and which is going to include the gain that you have.
S1: So how much gain did you have on this property
S1: when you take the selling price, minus the original purchase
S1: price and any improvements and expenses?
S9: Um, about 60 now. About 50,000.
S1: Okay. Yeah. So you would just need to look at
S1: the long term capital gains rate. Um, and, you know,
S1: you would determine whether you're at zero 15 or 20%. Um,
S1: and then, you know, keep in mind that you holding
S1: the mortgage, um, you know, is going to result in
S1: you having to pay, you know, tax as well. Um,
S1: and so I would probably get a CPA involved in
S1: this just to calculate, uh, you know, any capital gain
S1: that would be due given this wasn't your principal residence
S1: and then income taxes on this income that you now
S1: have moving forward.
S9: So it would be both capital gains and income tax.
S1: Well, capital gains on the sale of the asset that's appreciated.
S1: And then income tax on the interest that you're receiving
S1: on the mortgage.
S9: Oh okay. Oh the interest I receive on the mortgage
S9: would be very little. Okay. And I'm only on Social Security,
S9: so I don't have that much money.
S1: Okay. Yeah. Well, hopefully it'll be it'll be fairly low.
S1: It could be nothing at all if you're under that threshold, uh,
S1: for a single person. But, uh, when you add it
S1: all together, it perhaps could tip up into the the 15%
S1: long term capital gains rate. But you'll just want to
S1: check with your CPA to get all of that worked out. Linda,
S1: thanks for your call. I hope that helps you. We
S1: appreciate you being on the program today. Uh, Washington State's
S1: where we're headed next. Hi, Ethan. Go ahead.
S10: Hi, Rob. Thanks for taking my call. And thanks for
S10: all you do. Um.
S1: Yes, sir.
S10: Long story short, I. I'm rancher 31. I have, uh,
S10: you know, no investments, don't know, you know, kind of
S10: much about it. Um, so in the ag business, not
S10: a lot of them do like 401 K company, you know,
S10: kind of anything like that. Um, so I'm just kind
S10: of curious on maybe where to start to start up.
S10: I don't know if there's a difference of 401 or
S10: a Roth IRA kind of just kind of anything like that.
S1: Yeah. Very good. So you've got a couple of options there.
S1: I mean, are you considered self-employed?
S10: Uh, no. I work for, um, a rancher.
S1: Okay. All right. Yeah. So you've got a couple of options.
S1: I mean, certainly the IRA is a great starting point. Uh,
S1: if you're over the age of 50, you could put in,
S1: you know, $8,000. If you're married, you could double that. Um,
S1: and you can contribute for 2024 as well as 2025
S1: if you haven't filed your 24 return yet. So you could,
S1: you know, put in twice the amount and contribute for
S1: two years at once. That'd be a great beginning point.
S1: I mean, there are options for self-employed individuals, but that
S1: doesn't apply here because you're a W2 employee. So beyond that,
S1: you could look at a health savings account as one
S1: option to save for retirement, where you're essentially, you know,
S1: if you're healthy and you're not spending a lot of
S1: medical expenses, you could get a high deductible health plan.
S1: And then, you know, max out that health savings account
S1: and then keep that. And then after age 65, there's
S1: some advantages on how you could use that money. Um,
S1: you could look at, uh, you know, farm specific programs.
S1: If any of those apply, you could look at, uh,
S1: an insurance product, like an annuity would be one option
S1: for you to get some tax deferral. Um, and, you know,
S1: get money, you know, growing for the future, uh, that
S1: you could take advantage of down the road, and then
S1: you could just put money into a taxable account as well.
S1: And even though you're going to have to pay capital
S1: gains along the way, um, Um, you, you know, could
S1: still get a money growing for you in, in a, um,
S1: you know, properly diversified stock and bond portfolio. You'd have
S1: ultimate flexibility on that because it's outside of a retirement plan,
S1: even though you would have the drain of the taxes
S1: on it. Um, you know, you would have complete flexibility
S1: as to how you used it in the future. But
S1: I think starting with the, excuse me, the. Yeah, the
S1: Roth or traditional IRA and then perhaps the HSA, if
S1: that applies, and then either an annuity product or a
S1: taxable investment account or probably your your best options.
S10: Okay. Perfect. Um, I guess my only other question. Sorry,
S10: I'm trying to take notes. So, uh, is there or
S10: I guess would there be like a good book or
S10: a website to start and kind of like, you know,
S10: learn more rather than kind of try to remember my notes,
S10: I guess.
S1: Yeah, totally. Let me, let me send you one just
S1: as our gift to you. It's the book that I
S1: gave out earlier, but we'll send one to you as well. Ethan.
S1: It's called the Sound Mind Investing Handbook, and it's a
S1: it's a great kind of primer on this topic of investing,
S1: but through the lens of biblical principles, I think it'll
S1: get you well on your way to understanding investing in
S1: stocks and bonds and the various types of accounts that
S1: are available to you. And, and and then I think
S1: once you finish that sound mind investing org would be
S1: another place for some great, uh, research.
S10: Perfect. Thank you so much. And thank you and God
S10: bless you.
S1: Well thank you Ethan. I appreciate you as well. Thanks
S1: for calling in to the program today. If we can
S1: serve you with anything in the future, don't hesitate to
S1: reach out to us. Well, folks, uh, we covered a
S1: lot of ground today. Always fun and enjoyable to be
S1: on with you and help you think about how we
S1: manage God's money. You know, when it comes to investing,
S1: here's the thing. You know, we're hearing a lot right
S1: now about what's going on in the crypto space and
S1: Bitcoin and these high flying, you know, crypto memes. And
S1: you know, we've got, uh, all these speculative type investments,
S1: and they can have some allure to them because we
S1: hear about this overnight wealth that's created. Let's not fall
S1: for that. Uh, now, as as Mark Behler said, there
S1: might be a place for some Bitcoin. And in that
S1: more speculative portion of your portfolio, maybe 10%, maybe you
S1: take a sliver into Bitcoin, or maybe a sliver of
S1: the 5 to 10% that you would normally put into gold.
S1: But you're serious. Money needs to be sure and steady. Uh,
S1: the Bible calls it steady plodding. We need to be diversified.
S1: We need to have unity with our spouse. We need
S1: to have a long time horizon. And we need to
S1: ultimately understand that God is our provider, not anyone or
S1: anything else. I hope that's a helpful reminder to you today.
S1: Faith and finance live as a partnership between Moody Radio
S1: and Faith five. Couldn't do this without my team Amy, Jim,
S1: Dan Anthony serving us today and everybody here at Faith five.
S1: We'll see you tomorrow.