WEBVTT - Seeking God's Wisdom 0:00:08.200 --> 0:00:12.760 Proverbs 1616 says, how much better to get wisdom than gold? 0:00:12.920 --> 0:00:17.120 To get understanding is to be chosen rather than silver. Hi, 0:00:17.120 --> 0:00:20.000 I'm Rob West. In a world that chases, wealth is 0:00:20.000 --> 0:00:24.200 the ultimate goal. Scripture calls us to something better wisdom. 0:00:24.200 --> 0:00:29.040 Because without godly wisdom, even abundance can lead us astray. Today, 0:00:29.040 --> 0:00:32.920 Jim Newheiser joins us to explore why wisdom, not money, 0:00:32.920 --> 0:00:36.199 is the true measure of success in God's economy. And 0:00:36.200 --> 0:00:40.279 then it's on to your calls at 800, 500, 25, 7000. 0:00:40.479 --> 0:00:43.960 This is faith and finance. Live biblical wisdom for your 0:00:43.960 --> 0:00:49.880 financial journey. Well, it's a pleasure to welcome Jim Newheiser 0:00:49.880 --> 0:00:53.520 back on the program. Jim is a trusted biblical counselor, pastor, 0:00:53.520 --> 0:00:56.680 and seminary professor, and he's the author of a powerful 0:00:56.680 --> 0:01:00.540 little book I believe every Christian household should read money 0:01:00.820 --> 0:01:03.940 Seeking God's Wisdom. Jim, thanks for being with us today. 0:01:04.300 --> 0:01:06.740 Thank you so much. I'm delighted to be with you, Jim. 0:01:06.740 --> 0:01:09.419 We recently released a new study at Faith fi called 0:01:09.420 --> 0:01:13.179 Wisdom Over Wealth, which explores how the pursuit of wisdom, 0:01:13.180 --> 0:01:17.220 rather than wealth, leads to lasting purpose and joy. That's 0:01:17.220 --> 0:01:20.500 a theme you highlight in day 30 of your devotional, 0:01:20.500 --> 0:01:25.100 where you reflect on the surpassing value of wisdom over wealth. 0:01:25.459 --> 0:01:27.459 What led you to focus on that truth? 0:01:28.260 --> 0:01:31.339 Well, how we spend our time and how we spend 0:01:31.340 --> 0:01:34.580 our money really reflects what we value in our hearts. 0:01:34.620 --> 0:01:37.980 And yet, many people invest their time and their money 0:01:38.180 --> 0:01:41.300 in what does not really satisfy. In Isaiah chapter 55, 0:01:41.340 --> 0:01:44.580 verse two, the Lord declares, why do you spend money 0:01:44.580 --> 0:01:46.660 for what is not bread, and your wages for what 0:01:46.660 --> 0:01:50.220 does not satisfy? Listen carefully to me, and eat what 0:01:50.220 --> 0:01:53.300 is good, and delight yourself in abundance. And so the 0:01:53.300 --> 0:01:55.900 Lord is saying that the things that we pursue in 0:01:55.900 --> 0:01:57.260 the world that we think are going to make us 0:01:57.260 --> 0:02:00.550 really happy. Don't ever really satisfy our souls, and that 0:02:00.550 --> 0:02:03.470 the ultimate satisfaction comes in our relationship with him and 0:02:03.470 --> 0:02:04.590 all that he gives us. 0:02:04.870 --> 0:02:07.670 Yeah, there's no doubt about that. So then how should 0:02:07.670 --> 0:02:10.070 that motivate us as believers? 0:02:10.710 --> 0:02:13.549 Well, one would be just to pursue knowing God through 0:02:13.590 --> 0:02:17.070 His Word and to invest time in spending the word. 0:02:17.389 --> 0:02:19.669 A part of the principle, even of rest in the Bible, 0:02:19.669 --> 0:02:23.470 is that God has made us productive enough in six 0:02:23.470 --> 0:02:26.630 days so that we can invest today in seeking the 0:02:26.630 --> 0:02:29.670 Lord and worship with his people. And during the day, 0:02:29.669 --> 0:02:32.230 some people are so busy making money pursuing their career, 0:02:32.230 --> 0:02:33.830 they'll say, well, I don't have time to read the Bible. 0:02:33.830 --> 0:02:36.230 I don't have time to pray with my family, and 0:02:36.230 --> 0:02:39.389 to recognize that the time invested in our relationship with 0:02:39.389 --> 0:02:44.630 God is more lucrative in a spiritual sense, than spending 0:02:44.630 --> 0:02:47.190 every waking moment trying to earn more money. That's just 0:02:47.190 --> 0:02:49.030 going to be burned up in the end anyway. 0:02:49.070 --> 0:02:52.190 Yeah, there's no doubt about that, Jim, as we take 0:02:52.190 --> 0:02:55.389 even a deeper dive into this topic of wisdom, what 0:02:55.389 --> 0:02:57.490 else do you see in the proverbs that jumps out 0:02:57.490 --> 0:02:57.970 at you? 0:02:58.570 --> 0:03:02.450 It's interesting. Proverbs gives all these analogies and these pictures 0:03:02.450 --> 0:03:05.050 where you have lady wisdom as if she's the soul's 0:03:05.090 --> 0:03:08.450 true bride. And then there's Madame Folly, both the literal 0:03:08.450 --> 0:03:12.370 but also a figurative adulteress. And in Proverbs four, he 0:03:12.370 --> 0:03:15.610 even uses language where wisdom will be for you like 0:03:15.610 --> 0:03:18.690 a crown. Same language that uses elsewhere of a wife. 0:03:18.690 --> 0:03:22.050 Is that the joy and the satisfaction of pursuing the 0:03:22.090 --> 0:03:26.290 knowledge of God through His Word is going to be 0:03:26.290 --> 0:03:30.450 precious and delightful in every sense, and the world is 0:03:30.450 --> 0:03:34.930 tantalizing us with its false wisdom, including money is all 0:03:34.930 --> 0:03:38.890 that matters. Pleasure that money provides will make you happy, 0:03:39.290 --> 0:03:43.690 and that is spiritual adultery which will lead to misery. 0:03:44.090 --> 0:03:47.370 Mhm. Wow. Yeah. That's powerful. So Jim, in our final 0:03:47.370 --> 0:03:50.850 moments here in this broadcast, what would you share with 0:03:50.850 --> 0:03:54.450 our listeners who really want to apply this understanding of 0:03:54.630 --> 0:03:56.710 the value of wisdom to their lives. 0:03:57.150 --> 0:04:00.510 Will actually I would plug the book you're giving away 0:04:00.550 --> 0:04:02.830 my little book where for some people who aren't regularly 0:04:02.830 --> 0:04:05.510 in the word, it's just two pages a day. It 0:04:05.510 --> 0:04:07.190 can be a great thing for a husband and a 0:04:07.190 --> 0:04:11.190 wife or a family that it reads the scripture, it 0:04:11.230 --> 0:04:13.710 speaks from the Scripture to people. So I think building 0:04:13.710 --> 0:04:16.150 into your life a habit of seeking God in His Word. 0:04:16.150 --> 0:04:18.950 And for some people it might be starting with little 0:04:18.990 --> 0:04:22.110 bite sized chunks or reading a chapter of Proverbs a 0:04:22.110 --> 0:04:27.350 day and really asking God to speak to you. And 0:04:27.630 --> 0:04:30.589 he promises that he will give us something better than 0:04:30.630 --> 0:04:34.710 financial wealth as we taste and see the goodness of God. 0:04:35.430 --> 0:04:37.830 And no doubt about it. And you know my experience, Jim, 0:04:37.830 --> 0:04:40.670 is that this financial journey that we're on is one 0:04:40.670 --> 0:04:43.549 of the key ways God shapes our spiritual journey. There's 0:04:43.550 --> 0:04:47.150 just such a huge connection between our hearts and our money, 0:04:47.150 --> 0:04:50.510 and obviously God is all about our hearts. Well, Jim, 0:04:50.550 --> 0:04:52.870 it's great advice for us today. Thanks for stopping by, 0:04:52.960 --> 0:04:53.560 my friend. 0:04:53.920 --> 0:04:56.480 Thank you. My pleasure. May the Lord bless you. 0:04:56.520 --> 0:05:00.119 Our guest today has been author and biblical counselor Jim Newheiser. 0:05:00.279 --> 0:05:03.720 And if today's conversation sparked a desire to go deeper, 0:05:03.720 --> 0:05:06.679 we'd love to help you do just that. Faith five 0:05:06.720 --> 0:05:10.440 brand new study is called Wisdom Over Wealth 12 lessons 0:05:10.440 --> 0:05:13.640 from Ecclesiastes on Money. You receive a copy when you 0:05:13.640 --> 0:05:17.000 become a faith by partner at $35 a month or 0:05:17.000 --> 0:05:22.200 $400 a year when you go to faith Philly.com. We'll 0:05:22.200 --> 0:05:23.040 be right back. 0:05:33.520 --> 0:05:36.400 The opinions offered during this program represent the personal or 0:05:36.400 --> 0:05:40.560 professional opinions of the participants, given for informational purposes only. 0:05:40.640 --> 0:05:43.920 Any information provided is not intended to replace advice from 0:05:43.920 --> 0:05:47.760 a financial, medical, legal, or other professional who understands your 0:05:47.760 --> 0:05:49.200 specific situation. 0:05:55.779 --> 0:05:58.100 Hey, thanks for joining us today on Faith and finance 0:05:58.100 --> 0:06:00.900 Live here on Moody Radio I'm Rob West. Great to 0:06:00.900 --> 0:06:04.180 have Jim Newheiser here. I'll tell you, I so appreciate 0:06:04.180 --> 0:06:07.620 Jim's insights. And you know, this topic is so near 0:06:07.620 --> 0:06:09.860 and dear to our hearts here at Faith. FYI, that 0:06:09.940 --> 0:06:14.420 wisdom is undoubtedly better than money. Proverbs 16 how much 0:06:14.420 --> 0:06:18.020 better to get wisdom than gold? To get understanding is 0:06:18.020 --> 0:06:21.219 to be chosen rather than silver. You know, we live 0:06:21.220 --> 0:06:23.779 in a day and an age. The most prosperous nation 0:06:23.779 --> 0:06:26.900 in the history of the world, where money can have 0:06:26.900 --> 0:06:30.140 an allure. You know, the things of this world seem, well, 0:06:30.180 --> 0:06:33.580 very enticing. And they have promises that they make to 0:06:33.580 --> 0:06:35.820 us that they cannot live up to. They will not 0:06:35.820 --> 0:06:40.020 bring lasting fulfillment. They will not fulfill our need for 0:06:40.020 --> 0:06:44.820 recognition and identity and significance and abundance. We were hardwired 0:06:44.820 --> 0:06:47.460 for that. But we only find that in God as 0:06:47.460 --> 0:06:49.960 our ultimate treasure. Money, though, is a good gift, a 0:06:49.960 --> 0:06:54.320 powerful tool to bring God glory, to accomplish his purposes 0:06:54.320 --> 0:06:57.360 for us to enjoy and provide, and to give and 0:06:57.360 --> 0:07:00.560 to invest so long as it stays in its proper place, 0:07:00.560 --> 0:07:04.480 that is a tool accomplishing God's purposes. Now we realize 0:07:04.480 --> 0:07:07.320 you have very specific questions, things going on in your 0:07:07.320 --> 0:07:10.960 financial life as you navigate your own stewardship journey. And 0:07:10.960 --> 0:07:13.800 that's why we're here. Each afternoon, we come together to 0:07:13.840 --> 0:07:18.400 just lean into God's word, to share one another's burdens, 0:07:18.400 --> 0:07:21.840 but to also share our stories. And so we'd love 0:07:21.840 --> 0:07:23.880 for you to be a part of the broadcast today. 0:07:23.880 --> 0:07:26.800 Whether you're wrestling with some debt you can't seem to 0:07:26.840 --> 0:07:29.760 shake hold of, or maybe it's saving for the future. 0:07:29.800 --> 0:07:33.680 Perhaps you have uncertainty around how to navigate your investments. 0:07:33.680 --> 0:07:37.320 Or maybe it's your spending plan wanting to give wisely. 0:07:37.360 --> 0:07:39.440 What does that look like? Well, with any of those 0:07:39.440 --> 0:07:41.960 questions today, we've got lines open. We're ready for you. 0:07:41.960 --> 0:07:46.880 So you can call right now 800 525 7000. The 0:07:46.880 --> 0:07:49.490 lines will fill up, but now's the time to get in. 0:07:49.530 --> 0:07:51.570 You won't have to wait. Our team is standing by, 0:07:51.570 --> 0:07:55.450 so call right now with your financial questions of any nature. 0:07:55.490 --> 0:08:00.010 800 525 7000. We'll look forward to getting you on 0:08:00.010 --> 0:08:02.290 the air quickly. And we'll be headed to those phones 0:08:02.290 --> 0:08:04.930 here in just a moment. In the news today, a 0:08:04.930 --> 0:08:07.369 buying a home is harder than ever, and nearly half 0:08:07.370 --> 0:08:13.450 of homeowners regret their purchase. According to a bank rate survey, 45% 0:08:13.450 --> 0:08:18.250 of homeowners cite frustrations with ongoing costs. We're talking about 0:08:18.250 --> 0:08:23.010 maintenance and hidden fees. The average homeowner spends over $18,000 0:08:23.010 --> 0:08:27.650 a year on non-mortgage expenses. In places like California and Hawaii, 0:08:27.650 --> 0:08:32.490 that number jumps to nearly $29,000. Now these costs we're 0:08:32.490 --> 0:08:37.610 talking property taxes, internet repairs, and more. They often get 0:08:37.610 --> 0:08:40.810 overlooked during the buying process, especially by those who are 0:08:40.850 --> 0:08:44.209 stretching their budget. They're trying to get into a house, 0:08:44.210 --> 0:08:47.470 and they really can't afford that house. and they certainly 0:08:47.470 --> 0:08:52.270 aren't factoring in those nonpayment expenses things beyond the mortgage payment. 0:08:52.270 --> 0:08:56.390 So to guard against surprise expenses, experts recommend a thorough 0:08:56.429 --> 0:09:00.510 home inspection. This goes without saying. Zillow notes that while 0:09:00.510 --> 0:09:03.990 some issues may be minor, others like, well, a foundation 0:09:03.990 --> 0:09:09.710 crack I've been there could require specialists. Follow ups. Inspections 0:09:09.710 --> 0:09:13.550 can also help buyers negotiate repairs as a part of 0:09:13.550 --> 0:09:17.550 the sale. Still, regular upkeep is essential. Instead of waiting 0:09:17.550 --> 0:09:21.670 for things to break, schedule seasonal maintenance like gutter cleanings, 0:09:21.670 --> 0:09:24.070 I actually need to do that on my house, which 0:09:24.070 --> 0:09:27.270 can prevent significant issues down the line. Another one would 0:09:27.270 --> 0:09:30.550 be tuning up that AC unit. Yeah, it's an expense 0:09:30.550 --> 0:09:33.110 we'd all love to keep in our pockets, and yet 0:09:33.510 --> 0:09:37.069 it can save much more costly repairs down the road. 0:09:37.230 --> 0:09:40.270 They don't rush into buying. There's no shame in renting. 0:09:40.309 --> 0:09:43.870 Take time to evaluate your long term financial goals and 0:09:43.870 --> 0:09:48.569 readiness for the responsibilities of home ownership. Consult a financial 0:09:48.570 --> 0:09:52.450 advisor that can help you determine a realistic, sustainable home 0:09:52.490 --> 0:09:57.090 buying budget. Don't be concerned about delaying that purchase and 0:09:57.170 --> 0:10:00.370 not getting ahead of yourself. A couple of rules of thumb. 0:10:00.370 --> 0:10:02.250 And by the way, still some lines open. So if 0:10:02.290 --> 0:10:04.850 you've got a question today, we'll begin taking those here 0:10:04.850 --> 0:10:10.170 in just a moment. 800 525 7000 with your financial questions. 0:10:10.170 --> 0:10:15.530 That's 800 525 7000. Uh, two rules of thumb here 0:10:15.530 --> 0:10:17.610 when you're thinking about buying a home. Number one, is 0:10:17.610 --> 0:10:19.930 that down payment? We've talked about this a good bit. 0:10:20.050 --> 0:10:23.050 No more than or you want to save up 20% 0:10:23.330 --> 0:10:25.410 that you can put down. That's going to give you 0:10:25.770 --> 0:10:30.170 a bit extra in the way of not only savings 0:10:30.170 --> 0:10:34.610 for private mortgage insurance, which is an unnecessary expense, not 0:10:34.610 --> 0:10:37.050 going to do anything for you. And by the way, 0:10:37.050 --> 0:10:40.210 it's about 1% of the mortgage value. It's also going 0:10:40.210 --> 0:10:42.290 to ensure that you go in with some equity so 0:10:42.290 --> 0:10:44.540 that you don't ever find yourself upside down. If we 0:10:44.540 --> 0:10:46.940 were to get into a recession and although home prices 0:10:46.940 --> 0:10:49.620 don't dip often, they do go down. And so we 0:10:49.620 --> 0:10:52.700 certainly wouldn't want to get you upside down on that. 0:10:52.740 --> 0:10:55.060 I think the other big idea here is that, you know, 0:10:55.100 --> 0:10:58.460 there are three primary budget busters. If we were to 0:10:58.500 --> 0:11:00.260 just kind of take a look at what are those 0:11:00.260 --> 0:11:03.980 things that typically derail us with regard to our spending plan. 0:11:04.340 --> 0:11:07.819 Number one would be and this is easier to fix food. 0:11:08.179 --> 0:11:10.300 Food tends to be that area that can get out 0:11:10.340 --> 0:11:12.980 of control quickly. And and that's certainly true now with 0:11:12.980 --> 0:11:15.860 food prices where they are. I don't know if you've, uh, 0:11:15.900 --> 0:11:21.179 been able to eat, uh, out recently, but food costs 0:11:21.179 --> 0:11:24.179 are on the rise, no doubt. Um, that one. You 0:11:24.179 --> 0:11:27.860 can make some changes and rectify that situation. Second one, 0:11:27.900 --> 0:11:30.380 a little harder to get out of. And that would 0:11:30.380 --> 0:11:35.660 be transportation costs, you know, unwinding a purchase of a 0:11:35.660 --> 0:11:39.459 car that was beyond what you can afford, uh, obviously 0:11:39.500 --> 0:11:42.840 is a problematic, uh, but you can do it. The 0:11:42.840 --> 0:11:45.720 third one, though, is that house. Uh, you know, that 0:11:45.720 --> 0:11:49.360 is the budget buster that is the most difficult to unwind. 0:11:49.400 --> 0:11:52.760 Not only because it just takes time and and significant 0:11:52.760 --> 0:11:55.160 effort to sell a home, but it's costly. You know, 0:11:55.200 --> 0:11:58.920 buying and selling real estate are most expensive purchase for 0:11:58.920 --> 0:12:02.360 most of us. Um, is not without significant costs in 0:12:02.360 --> 0:12:05.679 terms of realtor fees and taxes and not to mention 0:12:05.679 --> 0:12:07.480 moving and all the other things that come with buying 0:12:07.480 --> 0:12:11.720 and selling homes. So I will say, let's just try 0:12:11.760 --> 0:12:15.280 not to put ourselves in that position to begin with. 0:12:15.320 --> 0:12:18.720 And the key there is just to avoid buying that 0:12:18.720 --> 0:12:22.079 house we really can't afford. And so we can't shop 0:12:22.080 --> 0:12:26.560 with our eyes and even the neighborhood or the features. 0:12:26.559 --> 0:12:29.320 We've got to start with the family budget. What is 0:12:29.320 --> 0:12:34.320 that amount of house we can really afford? And, uh, 0:12:34.320 --> 0:12:37.680 as a result of that, you know, back into, okay, 0:12:37.720 --> 0:12:39.679 what do I need to save and then what do 0:12:39.820 --> 0:12:42.580 I then need to take on as a mortgage? And 0:12:42.580 --> 0:12:45.820 at today's prevailing rates, which, you know, is higher than 0:12:45.820 --> 0:12:49.020 we have become accustomed to over the last couple of decades, 0:12:49.020 --> 0:12:52.700 even though it's closer to the long term averages. What 0:12:52.700 --> 0:12:55.780 is that mortgage payment, including taxes and insurance. Now, the 0:12:55.780 --> 0:12:59.060 other thing that really has gotten people as of late 0:12:59.220 --> 0:13:02.740 is that property insurance or excuse me, property taxes. Yeah, 0:13:02.780 --> 0:13:05.940 homeowners insurance is going up too. But property taxes have 0:13:05.940 --> 0:13:10.260 become very problematic just because with home values on the rise, 0:13:10.260 --> 0:13:13.380 even though you're not realizing that and you won't until 0:13:13.380 --> 0:13:16.660 you sell that property value is climbing, which means those 0:13:16.660 --> 0:13:19.540 property taxes are climbing. And, you know, we've got a 0:13:19.580 --> 0:13:21.500 lot of folks in our listening audience who have seen 0:13:21.500 --> 0:13:25.180 over the last, let's say, three years, as much as 30% 0:13:25.179 --> 0:13:28.540 or more in an increase in their property taxes. Well, that's, 0:13:28.900 --> 0:13:30.939 you know, that can be really problematic if we didn't 0:13:30.940 --> 0:13:34.140 have the ability to absorb that in our budget. So 0:13:34.260 --> 0:13:37.660 all that to say, homeownership is challenging right now. Higher 0:13:37.660 --> 0:13:42.440 interest rates. High housing prices don't stretch to buy a 0:13:42.440 --> 0:13:46.240 house you can't afford. And don't neglect those other expenses 0:13:46.520 --> 0:13:49.920 beyond the mortgage payment, which can add up quickly. All right, 0:13:49.920 --> 0:13:52.600 I hope that helps. Listen, we're going to be taking 0:13:52.600 --> 0:13:54.240 your phone calls here in just a moment. I think 0:13:54.240 --> 0:13:56.880 we've had some challenges with our phones. We're working to 0:13:56.960 --> 0:14:00.800 rectify that. If you've been getting a busy signal, hopefully 0:14:01.240 --> 0:14:04.280 that will be resolved here momentarily. Looking forward to hearing 0:14:04.280 --> 0:14:07.199 from you today on Faith and finance. Live on Moody Radio. 0:14:07.240 --> 0:14:09.960 I'm Rob West. Here's our goal that you'd see God 0:14:09.960 --> 0:14:12.520 as your ultimate treasure, and we'd help you live as 0:14:12.520 --> 0:14:15.560 a wise and faithful steward. Much more to come just 0:14:15.559 --> 0:14:18.280 around the corner. Don't go anywhere. We'll be right back. 0:14:34.600 --> 0:14:37.050 Thanks for joining us today on Faith and finance live. 0:14:37.050 --> 0:14:39.290 We are having some challenges with our phone lines today. 0:14:39.290 --> 0:14:42.370 You're probably getting a busy signal. Our team is working 0:14:42.370 --> 0:14:44.570 on that. We will try to get that resolved just 0:14:44.570 --> 0:14:46.530 as quickly as we can. In the meantime, we're going 0:14:46.570 --> 0:14:49.370 to tackle a couple of emails. We receive emails all 0:14:49.370 --> 0:14:51.530 the time, and maybe this is the Lord's way of 0:14:51.530 --> 0:14:54.490 encouraging me to get to some of those emails we've 0:14:54.490 --> 0:14:58.330 been collecting, which I'm delighted to do. It often slips 0:14:58.330 --> 0:15:01.010 my mind. Here's what David wrote I contributed to an 0:15:01.010 --> 0:15:04.050 IRA thinking it was a smart move. But now, in retirement, 0:15:04.050 --> 0:15:07.370 I'm facing a higher tax rate than when I earned 0:15:07.370 --> 0:15:10.330 the income. Are there any strategies to help mitigate the 0:15:10.330 --> 0:15:16.890 tax impact for those of us in this situation? You know, unfortunately, David, 0:15:16.890 --> 0:15:21.090 you're right, many retirees contributed to IRAs traditional that is 0:15:21.090 --> 0:15:26.650 expecting lower tax rates later, only to find that they 0:15:26.650 --> 0:15:30.210 end up in higher brackets due to required minimum distributions, 0:15:30.210 --> 0:15:34.410 maybe income they weren't counting on, among other things that 0:15:34.410 --> 0:15:36.750 could drive that. So here are a few ways to 0:15:36.790 --> 0:15:40.950 your question that can mitigate. Mitigate that increased tax liability. 0:15:40.990 --> 0:15:43.790 Number one. And this is one of my favorites. You 0:15:43.830 --> 0:15:46.190 probably heard me talk about it, but if not this 0:15:46.190 --> 0:15:50.110 could be a game changer. It's the qualified charitable distribution, 0:15:50.110 --> 0:15:55.270 the QCD. If you're 70.5 or older, it will go 0:15:55.270 --> 0:15:58.750 directly from your IRA to a charity. It doesn't count 0:15:58.750 --> 0:16:03.830 as income and can satisfy your required minimum. So that 0:16:03.830 --> 0:16:07.270 would allow you to get the money out, satisfy the minimum, um, 0:16:07.270 --> 0:16:10.950 and and not have anything added to your taxable income. 0:16:11.350 --> 0:16:15.270 You could do some incremental Roth conversions. So you'll pay 0:16:15.270 --> 0:16:18.190 the tax now. But growth and withdrawals from the Roth 0:16:18.190 --> 0:16:21.910 are of course tax free. You could delay Social Security 0:16:21.950 --> 0:16:24.070 if you wait till age 70. It could boost your 0:16:24.070 --> 0:16:28.190 benefit and give you more time to do Roth conversions. Um, 0:16:28.190 --> 0:16:29.990 and then I would just say plan ahead to make 0:16:29.990 --> 0:16:35.410 strategic withdrawals. So pulling from your IRA before RMDs start, 0:16:35.450 --> 0:16:38.490 can help to spread out taxes over time and keep 0:16:38.490 --> 0:16:41.330 you in a lower bracket. I would also say just 0:16:41.330 --> 0:16:45.090 this underscores the opportunity to work with an advisor. We 0:16:45.090 --> 0:16:48.370 recommend connecting with a certified Kingdom advisor to help you 0:16:48.370 --> 0:16:52.850 do tax planning. That minimizes what you have to give 0:16:52.890 --> 0:16:56.330 to Uncle Sam. Uh, you always obviously can look at 0:16:56.330 --> 0:16:59.890 other ways to reduce taxable income. That would be more typical, 0:16:59.890 --> 0:17:05.050 where you might increase your charitable contributions. Those kinds of 0:17:05.050 --> 0:17:08.170 things can be very helpful as well. So hopefully that 0:17:08.170 --> 0:17:10.290 gives you a few things to think about. Uh, this 0:17:10.290 --> 0:17:13.970 comes from Cecilia. She writes, uh, when helping a first 0:17:14.010 --> 0:17:17.490 time home buyer child, is it more cost effective to 0:17:17.530 --> 0:17:21.770 co-sign on the mortgage or take out a home equity 0:17:22.050 --> 0:17:25.890 loan and pay off the mortgage directly, allowing the child 0:17:25.890 --> 0:17:30.690 to repay the parents? The goal is to save closing 0:17:30.690 --> 0:17:36.139 costs and fees. Uh, let me just say, Cecilia, it's generous, uh, 0:17:36.140 --> 0:17:37.940 to want to help your child buy a home. But 0:17:37.940 --> 0:17:40.740 when it comes to cosigning, the Bible is crystal clear. 0:17:40.780 --> 0:17:45.140 Don't do it. Uh, Proverbs 2226 and 27 says, do 0:17:45.140 --> 0:17:49.380 not be one who strikes or shakes hands in pledge 0:17:49.540 --> 0:17:52.700 or puts up security for debts. If you lack the 0:17:52.700 --> 0:17:55.460 means to pay, your very bed will be snatched from 0:17:55.460 --> 0:17:59.220 under you. It doesn't mince any words there. Co-signing ties, 0:17:59.220 --> 0:18:04.020 your credit and financial future to someone else's behavior. Even 0:18:04.020 --> 0:18:07.340 if your child is responsible. Life happens. There's job losses 0:18:07.340 --> 0:18:10.139 and illness and divorce, and if they can't pay, the 0:18:10.140 --> 0:18:12.780 lender will come after you. And this could not only 0:18:12.780 --> 0:18:19.379 jeopardize your financial stability, it could also jeopardize your relationship, 0:18:19.660 --> 0:18:22.500 depending upon kind of how this ends up playing out. 0:18:22.500 --> 0:18:25.420 So here's what I would do. I would just say, uh, 0:18:25.420 --> 0:18:28.500 if you have a desire to help the kids, uh, 0:18:28.500 --> 0:18:30.480 you know, the best way I've found to do this 0:18:30.480 --> 0:18:34.000 is to let them qualify for the mortgage they can 0:18:34.000 --> 0:18:38.000 qualify for, and one that fits their budget. And to 0:18:38.040 --> 0:18:40.320 do that in a way that allows them to be 0:18:40.320 --> 0:18:44.639 responsible to exercise some discipline. But then perhaps you come 0:18:44.640 --> 0:18:50.040 in after the fact and prepay the mortgage and help 0:18:50.040 --> 0:18:52.879 them pay it down quicker, maybe even say, listen, we'll 0:18:52.880 --> 0:18:56.800 match every dollar you send beyond the scheduled mortgage payment. 0:18:56.840 --> 0:18:58.640 Now you may say, well, that's just going to end 0:18:58.640 --> 0:19:01.400 up with a higher mortgage and a higher payment. And 0:19:01.400 --> 0:19:04.440 that's unnecessary. But if they can get into the house 0:19:04.440 --> 0:19:07.720 they really can afford on the front end, then they 0:19:07.720 --> 0:19:10.600 shouldn't have any problem paying that mortgage payment. And by 0:19:10.600 --> 0:19:14.240 you paying it down, reducing that principal, you're going to 0:19:14.280 --> 0:19:17.359 save them a bundle in interest and ensure that they 0:19:17.359 --> 0:19:19.800 continue to pay at that level just to pay that 0:19:19.800 --> 0:19:22.320 off even quicker. Now the other way would be you 0:19:22.320 --> 0:19:26.040 make the gift that becomes the down payment. Um, you know, 0:19:26.080 --> 0:19:28.160 that's the other way to do it. But I would 0:19:28.300 --> 0:19:32.419 avoid that. Cosigning. Hope that helps. Cecilia. This one's from Cindy. 0:19:32.460 --> 0:19:36.060 She writes I've been hearing more about a deed fraud. 0:19:36.220 --> 0:19:39.780 What steps can homeowners take to protect themselves against it? 0:19:40.300 --> 0:19:43.780 You can check Cindy with your county deeds or record 0:19:43.820 --> 0:19:47.860 office to see if they offer an alert option. If 0:19:47.859 --> 0:19:51.220 anyone tries to do anything with your deed, many counties 0:19:51.220 --> 0:19:54.100 do now offer that service in response to all the 0:19:54.100 --> 0:19:58.340 talk about deed fraud. Most allow you to check online 0:19:58.340 --> 0:20:01.340 yourself to see the status of the deed. So since 0:20:01.340 --> 0:20:03.300 you can do these things on your own, we don't 0:20:03.340 --> 0:20:06.540 recommend that you pay a monthly fee for someone to 0:20:06.580 --> 0:20:08.820 do it for you. A lot of times this is 0:20:08.820 --> 0:20:13.699 referred to as, um, you know, title lock insurance. The 0:20:13.700 --> 0:20:17.100 problem is the word insurance is a misnomer. See, if 0:20:17.100 --> 0:20:23.060 somebody fraudulently transfers your deed into their name, and typically 0:20:23.060 --> 0:20:25.500 they would do that for the purpose of taking a 0:20:25.500 --> 0:20:30.430 loan against it that you're responsible for inadvertently. Um, and 0:20:30.430 --> 0:20:33.510 then not repaying it. And then ultimately, you figure it 0:20:33.510 --> 0:20:35.510 out when the home is tried. You know, they attempt 0:20:35.510 --> 0:20:38.709 to foreclose it. Nobody can protect you against that. It 0:20:38.710 --> 0:20:41.710 was fraudulent to begin with. Really, what they're trying to 0:20:41.710 --> 0:20:45.310 do is just alert you, uh, you know, to, uh, 0:20:45.310 --> 0:20:48.830 any kind of fraudulent transfer. Um, so in that case, 0:20:48.830 --> 0:20:52.429 I would just say, you know, let's not add unnecessary expense. Now, 0:20:52.430 --> 0:20:54.109 if you can afford it, and it gives you added 0:20:54.109 --> 0:20:56.830 peace of mind, go for it. But for the typical person, 0:20:56.830 --> 0:20:59.830 I would say, let's not add this kind of lock 0:21:00.030 --> 0:21:03.790 insurance or a title lock subscription. Uh, let's first check 0:21:03.790 --> 0:21:06.750 with our county deeds and records office and see if 0:21:06.750 --> 0:21:10.030 they will put an electronic alert on there for you, um, 0:21:10.030 --> 0:21:12.910 so that you can essentially do this yourself. I hope 0:21:12.910 --> 0:21:15.310 that helps. Hey, I'm glad we were able to tackle 0:21:15.350 --> 0:21:18.270 some questions for you today. Those come in by email 0:21:18.270 --> 0:21:20.270 and if you want to send one along, you can 0:21:20.310 --> 0:21:24.190 send it to ask Rob at com. You can also 0:21:24.190 --> 0:21:33.129 go to Moody's website, Moody Radio.com. That's Moody radio. All right. 0:21:33.130 --> 0:21:36.370 We're going to take a quick break. My understanding is we, uh, 0:21:36.410 --> 0:21:38.929 did get the phones. So if you have a question, 0:21:38.930 --> 0:21:43.810 now's the time to call 800 525 7000. Again, that 0:21:43.810 --> 0:21:48.770 number 800 525 7000. We'd love to hear from you today. 0:21:48.810 --> 0:21:51.170 A quick break and back with more after this. Stay 0:21:51.170 --> 0:21:51.690 with us. 0:22:02.570 --> 0:22:04.170 Great to have you with us today on Faith in 0:22:04.170 --> 0:22:05.490 Finance Live. We're looking. 0:22:05.490 --> 0:22:05.690 Forward. 0:22:05.690 --> 0:22:05.810 To. 0:22:05.810 --> 0:22:06.530 Taking your calls. 0:22:06.530 --> 0:22:07.530 And questions today. 0:22:07.530 --> 0:22:14.729 That number to call 800 525 7000. It's 800 525 7000. 0:22:14.770 --> 0:22:17.490 Our team is standing by. We'd love to tackle whatever 0:22:17.490 --> 0:22:20.610 is on your mind today. Let's head to the phones. Osceola, 0:22:20.609 --> 0:22:22.770 Indiana is where Dick's located. Go ahead, sir. 0:22:24.190 --> 0:22:27.830 Well. Good afternoon Rob. Glad to talk with you. I 0:22:27.869 --> 0:22:32.150 have been blessed over the years through the financial counseling 0:22:32.150 --> 0:22:36.310 that Moody's had on their programs, and that has helped 0:22:36.310 --> 0:22:40.710 us to be very diligent with our finances and in 0:22:40.710 --> 0:22:46.350 tithing and giving extra gifts. We're both retired now, and 0:22:47.070 --> 0:22:50.470 the we needed to take some money out to do 0:22:50.470 --> 0:22:55.910 some renovations on our house, and it was $50,000. And 0:22:55.910 --> 0:22:59.550 I'm just wondering, this has already been tied on, but 0:22:59.590 --> 0:23:02.510 there's the increase that came for having it in a 0:23:02.510 --> 0:23:06.470 401 K and now an IRA. How would you recommend 0:23:06.470 --> 0:23:10.150 we determine how much to tithe from that amount of money? 0:23:10.630 --> 0:23:14.150 Yeah. Very good. Well, Dick, thanks for your testimony to 0:23:14.190 --> 0:23:17.510 the important work of Moody Radio and delighted that we've 0:23:17.510 --> 0:23:19.990 been able to be a small part of your journey 0:23:20.030 --> 0:23:23.720 and giving testimony to the to the Lord's faithfulness. And 0:23:24.160 --> 0:23:27.080 so thrilled to hear that you've been a regular giver. 0:23:27.320 --> 0:23:29.960 So this money that we're talking about here, what did 0:23:29.960 --> 0:23:31.080 you say the amount was? 0:23:32.480 --> 0:23:34.560 It's a $50,000. 0:23:34.800 --> 0:23:37.720 Okay. And you pulled it from a retirement account? 0:23:38.800 --> 0:23:39.440 Yes. 0:23:39.800 --> 0:23:43.280 Okay. Yeah. So the the money that you put into 0:23:43.280 --> 0:23:46.520 the retirement account, um, whether that was by way of 0:23:46.560 --> 0:23:50.960 a salary deferral or an IRA contribution, if you were 0:23:50.960 --> 0:23:55.040 tithing on the gross, you tithed already on the principal 0:23:55.040 --> 0:23:57.920 amount that you put in. Now, what you're acknowledging is 0:23:57.920 --> 0:24:02.119 that some portion of what you're pulling out is, you know, 0:24:02.240 --> 0:24:05.080 part of that would be the gain inside that account. 0:24:05.119 --> 0:24:06.000 Is that correct? 0:24:06.440 --> 0:24:07.000 Yes. 0:24:07.160 --> 0:24:10.240 That's correct. Yeah. Great. So what is the total of 0:24:10.240 --> 0:24:15.119 your contributions? Do you do you have a record of that? 0:24:16.880 --> 0:24:19.720 I have that I don't have that handy. But we 0:24:19.760 --> 0:24:22.859 give 10% to our church. And then there are a 0:24:22.859 --> 0:24:26.620 number of ministries that we have given to for years 0:24:26.859 --> 0:24:29.060 that is beyond the 10%. 0:24:29.260 --> 0:24:31.580 Okay. Yeah. And I was actually. And then that's helpful. 0:24:31.580 --> 0:24:35.340 I was actually referring to the contributions into that retirement account. 0:24:35.380 --> 0:24:38.740 Do you know what the total amount of what you've 0:24:38.740 --> 0:24:42.100 put in is. So then we could determine how much 0:24:42.100 --> 0:24:45.220 beyond that would be equal to the, the gain or 0:24:45.220 --> 0:24:47.260 the increase that you've had in that account? 0:24:47.700 --> 0:24:51.500 No, I don't have that figure. But it would have been, 0:24:51.859 --> 0:24:57.820 you know, when when I, we tithed on the gross 0:24:57.820 --> 0:25:01.820 amount that we made as we worked and then um, 0:25:01.820 --> 0:25:07.620 from that, um, we had given to our 401 and 0:25:07.660 --> 0:25:11.860 then on retirement, we converted those to IRAs. 0:25:11.980 --> 0:25:15.220 Gotcha. Yeah. So that might be difficult to back into. 0:25:15.260 --> 0:25:18.260 I mean, ideally what we'd be able to do is say, okay, 0:25:18.300 --> 0:25:20.480 and I'm just going to use round numbers here. Let's 0:25:20.480 --> 0:25:23.080 say you put in you know we'll just use something 0:25:23.080 --> 0:25:25.520 simple 100,000. I'm sure it's a lot more than that 0:25:25.520 --> 0:25:29.560 over the years. And now it's 150. Um, then, you know, 0:25:29.600 --> 0:25:33.400 the the total gain on that would be 50,000 and 0:25:33.400 --> 0:25:35.919 we could say, okay, what portion of that? Well, it 0:25:35.920 --> 0:25:39.359 happens to be 50%. Uh, of of what you have 0:25:39.359 --> 0:25:42.880 now is, uh, resulting from the gain. And so we 0:25:42.880 --> 0:25:46.240 could apply that percentage to every withdrawal and say, okay, 0:25:46.480 --> 0:25:48.720 you know, half of everything I take out was what 0:25:48.720 --> 0:25:53.080 I put in, and half is considered the increase. And 0:25:53.080 --> 0:25:56.359 therefore I'm going to tithe on half of every check 0:25:56.359 --> 0:25:59.960 I take. Um, if you can't do that, uh, you 0:25:59.960 --> 0:26:03.200 could just use, you know, that as a ballpark number 0:26:03.320 --> 0:26:06.160 to say, okay, I'm going to assign some percentage that 0:26:06.200 --> 0:26:10.040 represents the increased portion of every check, and then we're 0:26:10.040 --> 0:26:12.640 going to give a tithe on that, recognizing you're giving 0:26:12.680 --> 0:26:16.320 above and beyond that with other giving. Um, but at 0:26:16.359 --> 0:26:18.650 least for every check you pull out. That would give 0:26:18.650 --> 0:26:22.050 you some, you know, percentage that you could apply to say, 0:26:22.250 --> 0:26:24.930 this is, you know, representative of the increase. And we're 0:26:24.930 --> 0:26:27.250 going to take a 10th of that and we're going 0:26:27.290 --> 0:26:29.490 to give it back, you know, to our local church 0:26:29.530 --> 0:26:31.530 as unto the Lord. Does that make sense? 0:26:32.490 --> 0:26:37.290 Yes. And I appreciate that. That's I think good wise counsel. 0:26:37.290 --> 0:26:38.410 So thank you Rob. 0:26:38.650 --> 0:26:41.689 Absolutely, Dick. We appreciate your call. Call anytime. If we 0:26:41.690 --> 0:26:44.250 can help you with anything. Uh, we'd love to chat 0:26:44.250 --> 0:26:47.730 with you. 800 525 7000 is the number to call. 0:26:47.730 --> 0:26:49.410 If you'd like to be a part of the program today, 0:26:49.410 --> 0:26:52.209 we'd love to have you. Let's go to Grand Rapids. Hi, Valerie. 0:26:52.250 --> 0:26:52.850 Go ahead. 0:26:53.690 --> 0:26:58.810 Hello. Um, yeah, I'm dpoa for my aunt, who is 0:26:58.810 --> 0:27:03.250 a very generous giver all of her life. And, um, 0:27:03.290 --> 0:27:05.609 although when her dementia went and she was maybe giving 0:27:05.609 --> 0:27:09.290 to some things that weren't wise, um, but she was 0:27:09.290 --> 0:27:11.850 able to kind of, you know, could see what she 0:27:11.850 --> 0:27:15.450 gave to and gave, did some giving early on. Not 0:27:15.550 --> 0:27:18.510 as much as the 50% she was giving away sometimes, 0:27:18.910 --> 0:27:22.949 but now she really can't. She wants she still has 0:27:22.950 --> 0:27:26.590 the heart for missions and. But it just tells me, 0:27:26.750 --> 0:27:29.550 you know, you do what's right. I can't think about that. Um, 0:27:29.550 --> 0:27:32.430 but now they're, you know, she's in an assisted living 0:27:32.590 --> 0:27:37.149 and she's needed increasing care. So it's fairly expensive and 0:27:37.150 --> 0:27:41.830 it's going up $300 a month, you know, starting this year. 0:27:42.310 --> 0:27:45.070 So she has 6 to 7 years left of investment 0:27:45.070 --> 0:27:47.710 if she stays at this level. But that's barring any 0:27:47.869 --> 0:27:50.590 medical things or other things that could come up too. 0:27:50.950 --> 0:27:53.790 So I'm trying to figure out what's the responsible thing. 0:27:54.070 --> 0:27:56.750 Do I still give in faith or is that would 0:27:56.750 --> 0:27:59.389 that come back and I'd have to justify that or 0:27:59.390 --> 0:28:02.630 would go, you know, yes, she goes on Medicaid. They 0:28:02.630 --> 0:28:05.030 go after the people she gave to or what? 0:28:05.270 --> 0:28:08.830 Yes. Well, I can appreciate that because I, I'm, I 0:28:08.950 --> 0:28:12.230 love the fact that you want to honor her desires 0:28:12.230 --> 0:28:16.450 and generous heart as you steward on behalf of her 0:28:16.450 --> 0:28:20.810 because she's unable to do so cognitively. These resources. And 0:28:20.810 --> 0:28:24.130 yet I would just say as her guardian, Valerie, your 0:28:24.130 --> 0:28:27.850 first obligation is to care for your aunt. And so 0:28:27.850 --> 0:28:31.330 I would say in, you know, your desire to to 0:28:31.369 --> 0:28:33.930 make sure that her needs, needs are met and that 0:28:33.930 --> 0:28:37.930 she can live comfortably, that would be my primary objective. 0:28:38.210 --> 0:28:42.050 And you know, the extent to which there's something left over. Obviously, 0:28:42.090 --> 0:28:45.690 not all that money can be given away to charity. Um, 0:28:45.690 --> 0:28:48.370 you know, if she had, you know, far more than 0:28:48.370 --> 0:28:51.770 you believe she would need, then I think, you know, honoring, 0:28:51.770 --> 0:28:55.810 continuing to give to missions and honoring that desire that, 0:28:55.850 --> 0:28:58.050 you know, was so clear just in the way she 0:28:58.050 --> 0:29:00.650 lived her life would be great, but it just doesn't 0:29:00.650 --> 0:29:04.209 sound like that's the situation that we're in. And, you know, 0:29:04.250 --> 0:29:07.130 she is ultimately the steward, but she's unable to make 0:29:07.250 --> 0:29:10.370 those decisions. The Lord doesn't need her money, and she 0:29:10.370 --> 0:29:13.420 clearly was very generous as an act of worship to 0:29:13.460 --> 0:29:15.980 the Lord. When she was able to do so. But 0:29:15.980 --> 0:29:18.380 I think at this point, if it were me, my 0:29:18.380 --> 0:29:21.860 primary objective, at least with these resources, not talking about 0:29:21.860 --> 0:29:25.420 your own with these resources, would be to ensure that 0:29:25.420 --> 0:29:28.500 everything that the Lord has entrusted to her is available 0:29:28.500 --> 0:29:31.180 for her care, and that would be my primary focus. 0:29:32.220 --> 0:29:34.460 Okay. I have another question. I mean, it was good 0:29:34.460 --> 0:29:37.100 when she finally did. I mean, she was very private 0:29:37.100 --> 0:29:41.140 about stuff. She'd just started letting me understand her finances. 0:29:41.140 --> 0:29:43.780 But then the people she invested with, we were able 0:29:43.780 --> 0:29:46.660 to track things and get things on him. But right now, 0:29:46.660 --> 0:29:49.540 we've got another man who had started a ministry in 0:29:49.540 --> 0:29:54.300 a nursing home. We've kind of taken over when he couldn't, but, um, 0:29:55.260 --> 0:30:00.340 his we've kind of come to, ah, and don't even 0:30:00.340 --> 0:30:03.140 know how to go about, you know, who, what kind 0:30:03.140 --> 0:30:05.260 of person would be the best to even sort this out, 0:30:05.260 --> 0:30:09.060 or whether we're better, better just letting it take its flow. 0:30:09.060 --> 0:30:11.680 And when it comes to a crisis. Somebody else should 0:30:11.680 --> 0:30:12.440 do something. 0:30:12.480 --> 0:30:14.520 Yeah, I think it'd be good to get somebody in 0:30:14.560 --> 0:30:17.080 there to just try to help. Take a look at that. Um, 0:30:17.080 --> 0:30:19.880 there is a resource that we offer that are called 0:30:19.880 --> 0:30:24.600 Certified Christian Financial Counselors, and they specialize in budgets and 0:30:24.600 --> 0:30:28.600 spending plans and, you know, debt plans and helping people 0:30:28.600 --> 0:30:32.240 just kind of get, uh, things in, in proper order 0:30:32.400 --> 0:30:36.000 with regard to managing finances. Um, so this is not 0:30:36.000 --> 0:30:39.080 a financial advisor or a wealth manager really more focused 0:30:39.080 --> 0:30:43.000 on the mechanics of personal finance. So head to our website. 0:30:43.680 --> 0:30:46.640 Com click find a professional. If you choose budgeting or 0:30:46.640 --> 0:30:50.240 debt you'll get a list of certified Christian financial counselors. 0:30:50.240 --> 0:30:59.160 Anyone can help. Thanks for your call. Thanks for joining 0:30:59.160 --> 0:31:01.800 us today on Faith and Finance Live. I'm Rob West 0:31:01.800 --> 0:31:03.560 here in our final segment today. We want to get 0:31:03.560 --> 0:31:05.640 to as many calls as we can. So if you 0:31:05.640 --> 0:31:08.360 have a question call right now. Anything going on in 0:31:08.360 --> 0:31:13.540 your financial life. 800 525 7000. We did have a 0:31:13.540 --> 0:31:15.940 small glitch with our phone system, but that has been 0:31:16.460 --> 0:31:18.580 reset and we're ready to go. So if you got 0:31:18.580 --> 0:31:21.100 a busy signal earlier, now's the time to try again 0:31:21.100 --> 0:31:27.220 with those financial questions. 800 525 7000. A Coral Springs, Florida, 0:31:27.220 --> 0:31:30.340 is where we're headed next. Laverne, thanks for calling. Go ahead. 0:31:31.380 --> 0:31:35.780 Thanks for taking my call, Rob. Okay, so my husband 0:31:35.780 --> 0:31:39.260 and I, we sold our primary home last year, and 0:31:39.300 --> 0:31:42.780 we're going to invest it in multifamily. Uh, that didn't 0:31:42.780 --> 0:31:46.740 work out. We're still going to do that. However, we 0:31:46.740 --> 0:31:50.340 have another building that I'm running my business out of. 0:31:50.780 --> 0:31:55.500 We have a mortgage balance of 180. The interest rate 0:31:55.500 --> 0:32:00.980 is 3.75. So we're thinking of paying off that 180 0:32:01.020 --> 0:32:04.580 by doubling the mortgage over two and a half years 0:32:04.620 --> 0:32:08.070 versus 24 years. Is that a good idea? 0:32:09.910 --> 0:32:12.470 Yeah. So let's talk through this. I mean, I never 0:32:13.030 --> 0:32:15.790 would be opposed to you paying off a mortgage early. 0:32:15.830 --> 0:32:18.270 It is a low interest rate. And so I'd want 0:32:18.310 --> 0:32:21.190 to understand just the opportunity cost of what you're giving 0:32:21.190 --> 0:32:24.630 up by putting that money into this illiquid asset of 0:32:24.630 --> 0:32:26.710 a home. Um, but let me just make sure I 0:32:26.710 --> 0:32:29.310 understood what you said. Did you say you already did 0:32:29.310 --> 0:32:31.190 sell your primary residence? 0:32:31.990 --> 0:32:32.910 Yes we did. 0:32:33.150 --> 0:32:37.190 Okay. So what is this property here with the 3.25%? 0:32:37.990 --> 0:32:43.030 Okay. So it's an investment property. We're temporarily staying there. 0:32:43.030 --> 0:32:47.350 We were renting for a year, which was 30,000 for 0:32:47.390 --> 0:32:50.590 that year. So we decided to pretend we're still paying 0:32:50.590 --> 0:32:53.950 that rent, put it on the mortgage and pay it 0:32:53.950 --> 0:32:56.670 off in two and a half years versus 24 years 0:32:57.310 --> 0:32:58.830 to save that interest. 0:32:59.390 --> 0:33:02.870 Yeah. Okay. And so where would that money come from? 0:33:02.910 --> 0:33:05.790 So you in two and a half years, you're going 0:33:05.930 --> 0:33:09.330 to pay off 180,000. Is that right? 0:33:10.170 --> 0:33:12.490 That's how I work it out at the mortgage we're 0:33:12.490 --> 0:33:16.770 paying now. Plus, adding the rent that we were paying, 0:33:16.770 --> 0:33:20.650 which was about 3000. So we would add that extra 0:33:20.650 --> 0:33:26.210 3000 to the mortgage to be mortgage free in. 0:33:26.250 --> 0:33:27.250 A half years. 0:33:27.290 --> 0:33:30.410 So that's about six. I mean, what about 7000 a month? 0:33:30.450 --> 0:33:31.770 You're going to send to cover the. 0:33:31.770 --> 0:33:32.890 Interest a little over. 0:33:32.930 --> 0:33:34.650 6000 a month, correct? 0:33:34.690 --> 0:33:35.210 Yes. 0:33:35.370 --> 0:33:38.930 Okay. Yeah. And, um, what other assets do you have 0:33:38.930 --> 0:33:39.570 right now? 0:33:41.050 --> 0:33:46.810 Well, we we have the money from the primary. Uh, 0:33:46.810 --> 0:33:48.570 it's about 200,000. 0:33:48.930 --> 0:33:49.410 Okay. 0:33:49.930 --> 0:33:54.250 And we have about 16,000 in business credit card debt 0:33:54.290 --> 0:33:58.690 and about 3000 in personal, which get paid off every month. 0:33:59.330 --> 0:33:59.930 Okay. 0:33:59.970 --> 0:34:03.290 Yeah. Um, but you don't have any retirement accounts or 0:34:03.290 --> 0:34:04.350 anything like that? 0:34:04.830 --> 0:34:05.310 No. 0:34:05.750 --> 0:34:08.870 Okay. Yeah. I mean, the only thing I would say is, 0:34:08.910 --> 0:34:11.710 you know, there's not a whole lot of diversification there. 0:34:11.910 --> 0:34:14.830 I mean, you would have pretty much all of your 0:34:14.989 --> 0:34:17.430 assets tied up in real estate, which there's nothing wrong 0:34:17.430 --> 0:34:20.870 with real estate. Uh, it's just that, you know, you 0:34:20.910 --> 0:34:23.469 you don't have anything working in a tax deferred environment, 0:34:23.469 --> 0:34:26.710 and you are all in one asset class. That asset 0:34:26.710 --> 0:34:29.830 class being real estate. Now that real estate is going 0:34:29.830 --> 0:34:33.469 to appreciate regardless of whether you pay off the mortgage. 0:34:33.469 --> 0:34:36.509 So really, you know, all you're doing is you're saving 0:34:36.510 --> 0:34:41.110 the 3.75%. And the reality is, you know, if you 0:34:41.110 --> 0:34:43.750 were to take that same, uh, you know, I don't 0:34:43.750 --> 0:34:47.710 know whether what is it, 3000 a month or 36,000 0:34:47.750 --> 0:34:52.029 a year and put it away elsewhere. Um, you know, 0:34:52.070 --> 0:34:55.230 you could probably, you know, it wouldn't be that difficult 0:34:55.230 --> 0:35:00.510 for you to outpace that 3.75%. And at the same time, 0:35:00.510 --> 0:35:05.890 you'd be further diversifying Crucifying yourself, um, among asset classes. 0:35:05.890 --> 0:35:08.770 So in addition to real estate, you'd have some in 0:35:08.770 --> 0:35:11.489 stocks and bonds, which is more liquid? Uh, because if 0:35:11.530 --> 0:35:13.569 you ever need to get to it, you could, you know, 0:35:13.570 --> 0:35:17.010 sell the stocks or bonds and have the money, whereas, 0:35:17.050 --> 0:35:20.450 as you know, it's it's more illiquid. Um, you know, 0:35:20.489 --> 0:35:23.450 with real estate, you've got transaction costs and it takes 0:35:23.450 --> 0:35:27.170 time to sell. So unless you all just are obviously 0:35:27.170 --> 0:35:29.770 you like real estate a lot, but unless you're just 0:35:29.770 --> 0:35:34.609 opposed to investing in the market, um, and therefore you'd 0:35:34.610 --> 0:35:38.129 rather just keep everything in your real estate, I would say, uh, 0:35:38.130 --> 0:35:41.330 especially given that you're planning to buy a multifamily property 0:35:41.370 --> 0:35:44.529 here with the proceeds of the primary residence. I would 0:35:44.530 --> 0:35:48.250 probably just ride that mortgage out, um, at a low 0:35:48.250 --> 0:35:51.730 rate and and get that money invested so that you've 0:35:51.730 --> 0:35:55.130 got something that can be growing for your future alongside 0:35:55.130 --> 0:35:58.090 the appreciation of that real estate. Does that make sense? 0:35:58.610 --> 0:36:00.490 Yes it does. Thank you so much. 0:36:00.860 --> 0:36:02.819 Yeah. And I. You're welcome. I try to get as 0:36:02.820 --> 0:36:05.180 much of that going into a in a retirement account 0:36:05.180 --> 0:36:07.820 as possible if you do that. So I'd probably use 0:36:07.820 --> 0:36:12.219 Roth IRAs. Are you all over the age of 50? 0:36:13.780 --> 0:36:15.500 Uh, yes. We both are. 0:36:15.940 --> 0:36:16.460 Okay. 0:36:16.500 --> 0:36:18.859 Yeah. So you would be able to, uh, to put 0:36:18.860 --> 0:36:24.779 in $8,000 each for the year, so 16,000, uh, for 2025, 0:36:24.780 --> 0:36:26.700 and then you could turn around and do that again, 0:36:26.739 --> 0:36:30.259 perhaps even a little bit more for 2026. The additional 0:36:30.260 --> 0:36:32.700 amount beyond those IRAs, you'd have to put in a 0:36:32.700 --> 0:36:35.299 taxable account, but you still could, you know, get that 0:36:35.300 --> 0:36:39.259 money working for you, uh, and make it and invest it. 0:36:39.260 --> 0:36:41.860 So hopefully that gives you some things to think about. Laverne, 0:36:41.900 --> 0:36:43.779 sounds like you and your husband are doing a great 0:36:43.780 --> 0:36:46.700 job managing all this, and we appreciate your call today. Uh, 0:36:46.700 --> 0:36:49.379 Tampa Bay is where we're headed next. Uh, Christina, go 0:36:49.380 --> 0:36:49.940 right ahead. 0:36:52.700 --> 0:36:55.180 Hello. How are you? Rob? Thanks for taking my call. 0:36:55.380 --> 0:36:56.580 Absolutely. Thank you. 0:36:57.500 --> 0:37:00.960 So my question today is, I'm probably on the opposite 0:37:00.960 --> 0:37:03.600 spectrum from a lot of people that call you. Um, 0:37:03.600 --> 0:37:06.319 I'm 47. I just started my career after being a 0:37:06.320 --> 0:37:08.400 stay at home mom. That was my number one job, 0:37:08.400 --> 0:37:09.960 and I'm grateful to God that I was able to 0:37:09.960 --> 0:37:13.600 do that. Um, got my dream job. Um, went back 0:37:13.600 --> 0:37:17.200 to school, got my bachelor's degree. I'm making okay money. 0:37:17.440 --> 0:37:20.760 I they offer at my job, they offer a 403 0:37:20.800 --> 0:37:23.640 B for retirement. I don't have any retirement. Never have 0:37:23.640 --> 0:37:26.960 had retirement from. Because I didn't have a career. Didn't 0:37:26.960 --> 0:37:30.359 have a job. Um, my question is this. They will 0:37:30.360 --> 0:37:33.520 start matching 3%. They have two options. One is like 0:37:33.560 --> 0:37:35.840 a pre-tax and the other one is a Roth. I 0:37:35.840 --> 0:37:41.760 think that's post tax. Um, they will match up to 3% 0:37:41.800 --> 0:37:44.799 after one year. Should I start putting money into that 0:37:44.800 --> 0:37:48.040 right now, or should I wait until they start matching? 0:37:48.040 --> 0:37:50.680 I'm not sure what to do, and I'm not exactly 0:37:50.680 --> 0:37:54.040 sure how much I should start putting in that account. Um, 0:37:54.040 --> 0:37:56.000 we're still trying to get out of debt and stuff 0:37:56.160 --> 0:37:57.120 and catch up. 0:37:57.620 --> 0:37:59.819 Okay? Yeah. Very good. Well, first of all, you did 0:37:59.820 --> 0:38:02.100 have a job and an amazing one at that. So 0:38:02.460 --> 0:38:05.299 I'm delighted to hear that. But now that you're transitioning 0:38:05.340 --> 0:38:08.660 to this next chapter and you've got, uh, a different 0:38:08.660 --> 0:38:10.819 type of work that you're excited about, I'm thrilled for 0:38:10.820 --> 0:38:13.299 you in that as well. And yeah, this is a 0:38:13.300 --> 0:38:16.100 great opportunity for you to start putting some money away. 0:38:16.380 --> 0:38:18.779 I'm not terribly concerned about the fact that there's not 0:38:18.780 --> 0:38:21.819 matching for the first year, especially with it. Sounds like 0:38:21.820 --> 0:38:24.460 your company gives you the option of a a Roth 0:38:24.460 --> 0:38:27.260 403 B. That's great. That means you can put in 0:38:27.380 --> 0:38:31.100 the after tax money. Um, and then it'll grow tax 0:38:31.100 --> 0:38:34.380 free and then you'll get that bonus, that kicker in 0:38:34.420 --> 0:38:36.580 12 months where they're going to start to match it. 0:38:36.580 --> 0:38:38.700 But I think the key for you right now is 0:38:38.900 --> 0:38:44.380 to get something going into retirement savings. And the Roth 0:38:44.380 --> 0:38:47.299 401 is a great option. And you have a lot 0:38:47.300 --> 0:38:50.180 more room to put in more money, um, you know, 0:38:50.219 --> 0:38:52.980 than you do with the IRA. Um, and you wouldn't 0:38:52.980 --> 0:38:54.779 get any matching on that either, so you might as 0:38:54.780 --> 0:38:57.270 well just keep it in the, in the for three b. 0:38:57.390 --> 0:38:59.710 I think the only question is based on what you 0:38:59.710 --> 0:39:01.430 said right there at the tail end, if you have 0:39:01.430 --> 0:39:04.870 high interest consumer debt, I would wait until that's paid 0:39:04.870 --> 0:39:08.390 off before you start putting money into the 403 B, 0:39:08.390 --> 0:39:10.790 because that's probably at a much higher interest rate than 0:39:10.790 --> 0:39:15.070 you would expect to earn reasonably on this 403 B account. 0:39:15.510 --> 0:39:17.310 So what what type of debt are you all still 0:39:17.310 --> 0:39:19.670 working on? Is it credit cards or something else? 0:39:20.390 --> 0:39:23.710 Yeah, we have credit card debt. Um, we still have 0:39:23.710 --> 0:39:27.750 our mortgage and we have some used cars. We didn't 0:39:27.750 --> 0:39:30.069 want to buy brand new after dealing with some stuff 0:39:30.070 --> 0:39:33.629 and doing having just really bad luck with deals. Um, 0:39:33.630 --> 0:39:38.430 we have very small, like car payments with lower. I mean, 0:39:38.670 --> 0:39:42.950 they're not super low, but our balances are not extraordinarily 0:39:42.950 --> 0:39:44.950 high like they would be with a brand new car. 0:39:45.150 --> 0:39:47.310 So the goal is to try to pay those off 0:39:47.350 --> 0:39:49.710 and and get out of some of that debt. And 0:39:49.710 --> 0:39:52.149 then of course, the credit card debt. It's not astronomical, 0:39:52.150 --> 0:39:55.250 but it's enough where we probably should pay that stuff 0:39:55.290 --> 0:39:56.250 off first. 0:39:56.450 --> 0:39:59.250 Yeah, I would totally agree with that. Not necessarily the cars. 0:39:59.290 --> 0:40:01.850 I mean, if you have a conviction about that, go ahead. 0:40:01.850 --> 0:40:03.569 But a lot of times, you know, as long as 0:40:03.570 --> 0:40:05.810 you you didn't buy too much car and it sounds 0:40:05.810 --> 0:40:08.210 like you guys were really thoughtful about what you did there. 0:40:08.410 --> 0:40:11.170 I just work that into your spending plan, and I 0:40:11.170 --> 0:40:13.969 would take advantage of this opportunity to get that compounding 0:40:13.969 --> 0:40:16.370 working for you in that four A, three B. But 0:40:16.370 --> 0:40:19.290 I would prioritize the credit card debt first, because if 0:40:19.290 --> 0:40:22.049 that's at an interest rate north of 20%, we want 0:40:22.090 --> 0:40:23.930 to get rid of that as quickly as we can. 0:40:23.969 --> 0:40:28.170 So if you delaying the 403 B contributions means you 0:40:28.170 --> 0:40:31.050 can get out from under that credit card debt quicker. Great. 0:40:31.050 --> 0:40:33.089 Let's do it. The second thing is, I'd love for 0:40:33.090 --> 0:40:36.049 you to have at least one month's worth of emergency 0:40:36.090 --> 0:40:40.290 funds in there before you start the 403 B, and 0:40:40.290 --> 0:40:43.530 then let's start the four of three B contributions. So 0:40:43.530 --> 0:40:45.930 long as you've got at least something going into that 0:40:45.930 --> 0:40:48.850 emergency fund every month. So even if it's slow, we're 0:40:48.890 --> 0:40:51.209 getting on our way to the 3 to 6 months 0:40:51.210 --> 0:40:54.469 expenses you really want. Ultimately, I'd love for you to 0:40:54.469 --> 0:40:57.310 be putting 10 to 15% of your pay in that 0:40:57.310 --> 0:41:00.910 403 B, but if you need to delay that because 0:41:00.950 --> 0:41:03.150 you know you're still working on the credit cards or 0:41:03.190 --> 0:41:06.670 because you're still working on the emergency fund, then that's fine. 0:41:06.670 --> 0:41:08.750 But as soon as you can, I'd get that money 0:41:08.750 --> 0:41:12.430 going in the 403 B even before the matching kicks in. 0:41:13.390 --> 0:41:15.990 Awesome. Thank you so much Rob I appreciate it. 0:41:16.310 --> 0:41:19.750 Absolutely. Thanks for your call today. Uh, Lisa, I apologize 0:41:19.750 --> 0:41:22.430 we didn't get to you. We're about out of time today. Uh, 0:41:22.430 --> 0:41:24.509 they're in Fort Lauderdale, but I'd love to get you 0:41:24.510 --> 0:41:28.790 on tomorrow's broadcast. So if you want to hold the line. Uh, Lisa, 0:41:28.790 --> 0:41:31.629 we'll see if we can get you scheduled for tomorrow's show. 0:41:31.630 --> 0:41:34.430 And we appreciate your call today. Well, folks, uh, boy, 0:41:34.430 --> 0:41:36.350 what a treat to be along with you today to 0:41:36.390 --> 0:41:39.910 help you think through your role in managing God's money. Hey, 0:41:39.910 --> 0:41:42.109 before we wrap up today, let me just invite you 0:41:42.110 --> 0:41:46.109 to become a faithful partner. Uh, partners are a key 0:41:46.110 --> 0:41:49.270 part of our ministry as a listener supported ministry. We 0:41:49.270 --> 0:41:52.760 can only do what we do because of your generous support. 0:41:52.760 --> 0:41:55.280 And so if you find value in the program, maybe 0:41:55.280 --> 0:41:57.719 you listen regularly. You love what we're able to do 0:41:57.719 --> 0:42:01.640 each day to encourage you in your journey as a steward. 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