S1: Proverbs 1616 says, how much better to get wisdom than gold?
S1: To get understanding is to be chosen rather than silver. Hi,
S1: I'm Rob West. In a world that chases, wealth is
S1: the ultimate goal. Scripture calls us to something better wisdom.
S1: Because without godly wisdom, even abundance can lead us astray. Today,
S1: Jim Newheiser joins us to explore why wisdom, not money,
S1: is the true measure of success in God's economy. And
S1: then it's on to your calls at 800, 500, 25, 7000.
S1: This is faith and finance. Live biblical wisdom for your
S1: financial journey. Well, it's a pleasure to welcome Jim Newheiser
S1: back on the program. Jim is a trusted biblical counselor, pastor,
S1: and seminary professor, and he's the author of a powerful
S1: little book I believe every Christian household should read money
S1: Seeking God's Wisdom. Jim, thanks for being with us today.
S2: Thank you so much. I'm delighted to be with you, Jim.
S1: We recently released a new study at Faith fi called
S1: Wisdom Over Wealth, which explores how the pursuit of wisdom,
S1: rather than wealth, leads to lasting purpose and joy. That's
S1: a theme you highlight in day 30 of your devotional,
S1: where you reflect on the surpassing value of wisdom over wealth.
S1: What led you to focus on that truth?
S2: Well, how we spend our time and how we spend
S2: our money really reflects what we value in our hearts.
S2: And yet, many people invest their time and their money
S2: in what does not really satisfy. In Isaiah chapter 55,
S2: verse two, the Lord declares, why do you spend money
S2: for what is not bread, and your wages for what
S2: does not satisfy? Listen carefully to me, and eat what
S2: is good, and delight yourself in abundance. And so the
S2: Lord is saying that the things that we pursue in
S2: the world that we think are going to make us
S2: really happy. Don't ever really satisfy our souls, and that
S2: the ultimate satisfaction comes in our relationship with him and
S2: all that he gives us.
S1: Yeah, there's no doubt about that. So then how should
S1: that motivate us as believers?
S2: Well, one would be just to pursue knowing God through
S2: His Word and to invest time in spending the word.
S2: A part of the principle, even of rest in the Bible,
S2: is that God has made us productive enough in six
S2: days so that we can invest today in seeking the
S2: Lord and worship with his people. And during the day,
S2: some people are so busy making money pursuing their career,
S2: they'll say, well, I don't have time to read the Bible.
S2: I don't have time to pray with my family, and
S2: to recognize that the time invested in our relationship with
S2: God is more lucrative in a spiritual sense, than spending
S2: every waking moment trying to earn more money. That's just
S2: going to be burned up in the end anyway.
S1: Yeah, there's no doubt about that, Jim, as we take
S1: even a deeper dive into this topic of wisdom, what
S1: else do you see in the proverbs that jumps out
S1: at you?
S2: It's interesting. Proverbs gives all these analogies and these pictures
S2: where you have lady wisdom as if she's the soul's
S2: true bride. And then there's Madame Folly, both the literal
S2: but also a figurative adulteress. And in Proverbs four, he
S2: even uses language where wisdom will be for you like
S2: a crown. Same language that uses elsewhere of a wife.
S2: Is that the joy and the satisfaction of pursuing the
S2: knowledge of God through His Word is going to be
S2: precious and delightful in every sense, and the world is
S2: tantalizing us with its false wisdom, including money is all
S2: that matters. Pleasure that money provides will make you happy,
S2: and that is spiritual adultery which will lead to misery.
S1: Mhm. Wow. Yeah. That's powerful. So Jim, in our final
S1: moments here in this broadcast, what would you share with
S1: our listeners who really want to apply this understanding of
S1: the value of wisdom to their lives.
S2: Will actually I would plug the book you're giving away
S2: my little book where for some people who aren't regularly
S2: in the word, it's just two pages a day. It
S2: can be a great thing for a husband and a
S2: wife or a family that it reads the scripture, it
S2: speaks from the Scripture to people. So I think building
S2: into your life a habit of seeking God in His Word.
S2: And for some people it might be starting with little
S2: bite sized chunks or reading a chapter of Proverbs a
S2: day and really asking God to speak to you. And
S2: he promises that he will give us something better than
S2: financial wealth as we taste and see the goodness of God.
S1: And no doubt about it. And you know my experience, Jim,
S1: is that this financial journey that we're on is one
S1: of the key ways God shapes our spiritual journey. There's
S1: just such a huge connection between our hearts and our money,
S1: and obviously God is all about our hearts. Well, Jim,
S1: it's great advice for us today. Thanks for stopping by,
S1: my friend.
S2: Thank you. My pleasure. May the Lord bless you.
S1: Our guest today has been author and biblical counselor Jim Newheiser.
S1: And if today's conversation sparked a desire to go deeper,
S1: we'd love to help you do just that. Faith five
S1: brand new study is called Wisdom Over Wealth 12 lessons
S1: from Ecclesiastes on Money. You receive a copy when you
S1: become a faith by partner at $35 a month or
S1: $400 a year when you go to faith Philly.com. We'll
S1: be right back.
S3: The opinions offered during this program represent the personal or
S3: professional opinions of the participants, given for informational purposes only.
S3: Any information provided is not intended to replace advice from
S3: a financial, medical, legal, or other professional who understands your
S3: specific situation.
S1: Hey, thanks for joining us today on Faith and finance
S1: Live here on Moody Radio I'm Rob West. Great to
S1: have Jim Newheiser here. I'll tell you, I so appreciate
S1: Jim's insights. And you know, this topic is so near
S1: and dear to our hearts here at Faith. FYI, that
S1: wisdom is undoubtedly better than money. Proverbs 16 how much
S1: better to get wisdom than gold? To get understanding is
S1: to be chosen rather than silver. You know, we live
S1: in a day and an age. The most prosperous nation
S1: in the history of the world, where money can have
S1: an allure. You know, the things of this world seem, well,
S1: very enticing. And they have promises that they make to
S1: us that they cannot live up to. They will not
S1: bring lasting fulfillment. They will not fulfill our need for
S1: recognition and identity and significance and abundance. We were hardwired
S1: for that. But we only find that in God as
S1: our ultimate treasure. Money, though, is a good gift, a
S1: powerful tool to bring God glory, to accomplish his purposes
S1: for us to enjoy and provide, and to give and
S1: to invest so long as it stays in its proper place,
S1: that is a tool accomplishing God's purposes. Now we realize
S1: you have very specific questions, things going on in your
S1: financial life as you navigate your own stewardship journey. And
S1: that's why we're here. Each afternoon, we come together to
S1: just lean into God's word, to share one another's burdens,
S1: but to also share our stories. And so we'd love
S1: for you to be a part of the broadcast today.
S1: Whether you're wrestling with some debt you can't seem to
S1: shake hold of, or maybe it's saving for the future.
S1: Perhaps you have uncertainty around how to navigate your investments.
S1: Or maybe it's your spending plan wanting to give wisely.
S1: What does that look like? Well, with any of those
S1: questions today, we've got lines open. We're ready for you.
S1: So you can call right now 800 525 7000. The
S1: lines will fill up, but now's the time to get in.
S1: You won't have to wait. Our team is standing by,
S1: so call right now with your financial questions of any nature.
S1: 800 525 7000. We'll look forward to getting you on
S1: the air quickly. And we'll be headed to those phones
S1: here in just a moment. In the news today, a
S1: buying a home is harder than ever, and nearly half
S1: of homeowners regret their purchase. According to a bank rate survey, 45%
S1: of homeowners cite frustrations with ongoing costs. We're talking about
S1: maintenance and hidden fees. The average homeowner spends over $18,000
S1: a year on non-mortgage expenses. In places like California and Hawaii,
S1: that number jumps to nearly $29,000. Now these costs we're
S1: talking property taxes, internet repairs, and more. They often get
S1: overlooked during the buying process, especially by those who are
S1: stretching their budget. They're trying to get into a house,
S1: and they really can't afford that house. and they certainly
S1: aren't factoring in those nonpayment expenses things beyond the mortgage payment.
S1: So to guard against surprise expenses, experts recommend a thorough
S1: home inspection. This goes without saying. Zillow notes that while
S1: some issues may be minor, others like, well, a foundation
S1: crack I've been there could require specialists. Follow ups. Inspections
S1: can also help buyers negotiate repairs as a part of
S1: the sale. Still, regular upkeep is essential. Instead of waiting
S1: for things to break, schedule seasonal maintenance like gutter cleanings,
S1: I actually need to do that on my house, which
S1: can prevent significant issues down the line. Another one would
S1: be tuning up that AC unit. Yeah, it's an expense
S1: we'd all love to keep in our pockets, and yet
S1: it can save much more costly repairs down the road.
S1: They don't rush into buying. There's no shame in renting.
S1: Take time to evaluate your long term financial goals and
S1: readiness for the responsibilities of home ownership. Consult a financial
S1: advisor that can help you determine a realistic, sustainable home
S1: buying budget. Don't be concerned about delaying that purchase and
S1: not getting ahead of yourself. A couple of rules of thumb.
S1: And by the way, still some lines open. So if
S1: you've got a question today, we'll begin taking those here
S1: in just a moment. 800 525 7000 with your financial questions.
S1: That's 800 525 7000. Uh, two rules of thumb here
S1: when you're thinking about buying a home. Number one, is
S1: that down payment? We've talked about this a good bit.
S1: No more than or you want to save up 20%
S1: that you can put down. That's going to give you
S1: a bit extra in the way of not only savings
S1: for private mortgage insurance, which is an unnecessary expense, not
S1: going to do anything for you. And by the way,
S1: it's about 1% of the mortgage value. It's also going
S1: to ensure that you go in with some equity so
S1: that you don't ever find yourself upside down. If we
S1: were to get into a recession and although home prices
S1: don't dip often, they do go down. And so we
S1: certainly wouldn't want to get you upside down on that.
S1: I think the other big idea here is that, you know,
S1: there are three primary budget busters. If we were to
S1: just kind of take a look at what are those
S1: things that typically derail us with regard to our spending plan.
S1: Number one would be and this is easier to fix food.
S1: Food tends to be that area that can get out
S1: of control quickly. And and that's certainly true now with
S1: food prices where they are. I don't know if you've, uh,
S1: been able to eat, uh, out recently, but food costs
S1: are on the rise, no doubt. Um, that one. You
S1: can make some changes and rectify that situation. Second one,
S1: a little harder to get out of. And that would
S1: be transportation costs, you know, unwinding a purchase of a
S1: car that was beyond what you can afford, uh, obviously
S1: is a problematic, uh, but you can do it. The
S1: third one, though, is that house. Uh, you know, that
S1: is the budget buster that is the most difficult to unwind.
S1: Not only because it just takes time and and significant
S1: effort to sell a home, but it's costly. You know,
S1: buying and selling real estate are most expensive purchase for
S1: most of us. Um, is not without significant costs in
S1: terms of realtor fees and taxes and not to mention
S1: moving and all the other things that come with buying
S1: and selling homes. So I will say, let's just try
S1: not to put ourselves in that position to begin with.
S1: And the key there is just to avoid buying that
S1: house we really can't afford. And so we can't shop
S1: with our eyes and even the neighborhood or the features.
S1: We've got to start with the family budget. What is
S1: that amount of house we can really afford? And, uh,
S1: as a result of that, you know, back into, okay,
S1: what do I need to save and then what do
S1: I then need to take on as a mortgage? And
S1: at today's prevailing rates, which, you know, is higher than
S1: we have become accustomed to over the last couple of decades,
S1: even though it's closer to the long term averages. What
S1: is that mortgage payment, including taxes and insurance. Now, the
S1: other thing that really has gotten people as of late
S1: is that property insurance or excuse me, property taxes. Yeah,
S1: homeowners insurance is going up too. But property taxes have
S1: become very problematic just because with home values on the rise,
S1: even though you're not realizing that and you won't until
S1: you sell that property value is climbing, which means those
S1: property taxes are climbing. And, you know, we've got a
S1: lot of folks in our listening audience who have seen
S1: over the last, let's say, three years, as much as 30%
S1: or more in an increase in their property taxes. Well, that's,
S1: you know, that can be really problematic if we didn't
S1: have the ability to absorb that in our budget. So
S1: all that to say, homeownership is challenging right now. Higher
S1: interest rates. High housing prices don't stretch to buy a
S1: house you can't afford. And don't neglect those other expenses
S1: beyond the mortgage payment, which can add up quickly. All right,
S1: I hope that helps. Listen, we're going to be taking
S1: your phone calls here in just a moment. I think
S1: we've had some challenges with our phones. We're working to
S1: rectify that. If you've been getting a busy signal, hopefully
S1: that will be resolved here momentarily. Looking forward to hearing
S1: from you today on Faith and finance. Live on Moody Radio.
S1: I'm Rob West. Here's our goal that you'd see God
S1: as your ultimate treasure, and we'd help you live as
S1: a wise and faithful steward. Much more to come just
S1: around the corner. Don't go anywhere. We'll be right back.
S1: Thanks for joining us today on Faith and finance live.
S1: We are having some challenges with our phone lines today.
S1: You're probably getting a busy signal. Our team is working
S1: on that. We will try to get that resolved just
S1: as quickly as we can. In the meantime, we're going
S1: to tackle a couple of emails. We receive emails all
S1: the time, and maybe this is the Lord's way of
S1: encouraging me to get to some of those emails we've
S1: been collecting, which I'm delighted to do. It often slips
S1: my mind. Here's what David wrote I contributed to an
S1: IRA thinking it was a smart move. But now, in retirement,
S1: I'm facing a higher tax rate than when I earned
S1: the income. Are there any strategies to help mitigate the
S1: tax impact for those of us in this situation? You know, unfortunately, David,
S1: you're right, many retirees contributed to IRAs traditional that is
S1: expecting lower tax rates later, only to find that they
S1: end up in higher brackets due to required minimum distributions,
S1: maybe income they weren't counting on, among other things that
S1: could drive that. So here are a few ways to
S1: your question that can mitigate. Mitigate that increased tax liability.
S1: Number one. And this is one of my favorites. You
S1: probably heard me talk about it, but if not this
S1: could be a game changer. It's the qualified charitable distribution,
S1: the QCD. If you're 70.5 or older, it will go
S1: directly from your IRA to a charity. It doesn't count
S1: as income and can satisfy your required minimum. So that
S1: would allow you to get the money out, satisfy the minimum, um,
S1: and and not have anything added to your taxable income.
S1: You could do some incremental Roth conversions. So you'll pay
S1: the tax now. But growth and withdrawals from the Roth
S1: are of course tax free. You could delay Social Security
S1: if you wait till age 70. It could boost your
S1: benefit and give you more time to do Roth conversions. Um,
S1: and then I would just say plan ahead to make
S1: strategic withdrawals. So pulling from your IRA before RMDs start,
S1: can help to spread out taxes over time and keep
S1: you in a lower bracket. I would also say just
S1: this underscores the opportunity to work with an advisor. We
S1: recommend connecting with a certified Kingdom advisor to help you
S1: do tax planning. That minimizes what you have to give
S1: to Uncle Sam. Uh, you always obviously can look at
S1: other ways to reduce taxable income. That would be more typical,
S1: where you might increase your charitable contributions. Those kinds of
S1: things can be very helpful as well. So hopefully that
S1: gives you a few things to think about. Uh, this
S1: comes from Cecilia. She writes, uh, when helping a first
S1: time home buyer child, is it more cost effective to
S1: co-sign on the mortgage or take out a home equity
S1: loan and pay off the mortgage directly, allowing the child
S1: to repay the parents? The goal is to save closing
S1: costs and fees. Uh, let me just say, Cecilia, it's generous, uh,
S1: to want to help your child buy a home. But
S1: when it comes to cosigning, the Bible is crystal clear.
S1: Don't do it. Uh, Proverbs 2226 and 27 says, do
S1: not be one who strikes or shakes hands in pledge
S1: or puts up security for debts. If you lack the
S1: means to pay, your very bed will be snatched from
S1: under you. It doesn't mince any words there. Co-signing ties,
S1: your credit and financial future to someone else's behavior. Even
S1: if your child is responsible. Life happens. There's job losses
S1: and illness and divorce, and if they can't pay, the
S1: lender will come after you. And this could not only
S1: jeopardize your financial stability, it could also jeopardize your relationship,
S1: depending upon kind of how this ends up playing out.
S1: So here's what I would do. I would just say, uh,
S1: if you have a desire to help the kids, uh,
S1: you know, the best way I've found to do this
S1: is to let them qualify for the mortgage they can
S1: qualify for, and one that fits their budget. And to
S1: do that in a way that allows them to be
S1: responsible to exercise some discipline. But then perhaps you come
S1: in after the fact and prepay the mortgage and help
S1: them pay it down quicker, maybe even say, listen, we'll
S1: match every dollar you send beyond the scheduled mortgage payment.
S1: Now you may say, well, that's just going to end
S1: up with a higher mortgage and a higher payment. And
S1: that's unnecessary. But if they can get into the house
S1: they really can afford on the front end, then they
S1: shouldn't have any problem paying that mortgage payment. And by
S1: you paying it down, reducing that principal, you're going to
S1: save them a bundle in interest and ensure that they
S1: continue to pay at that level just to pay that
S1: off even quicker. Now the other way would be you
S1: make the gift that becomes the down payment. Um, you know,
S1: that's the other way to do it. But I would
S1: avoid that. Cosigning. Hope that helps. Cecilia. This one's from Cindy.
S1: She writes I've been hearing more about a deed fraud.
S1: What steps can homeowners take to protect themselves against it?
S1: You can check Cindy with your county deeds or record
S1: office to see if they offer an alert option. If
S1: anyone tries to do anything with your deed, many counties
S1: do now offer that service in response to all the
S1: talk about deed fraud. Most allow you to check online
S1: yourself to see the status of the deed. So since
S1: you can do these things on your own, we don't
S1: recommend that you pay a monthly fee for someone to
S1: do it for you. A lot of times this is
S1: referred to as, um, you know, title lock insurance. The
S1: problem is the word insurance is a misnomer. See, if
S1: somebody fraudulently transfers your deed into their name, and typically
S1: they would do that for the purpose of taking a
S1: loan against it that you're responsible for inadvertently. Um, and
S1: then not repaying it. And then ultimately, you figure it
S1: out when the home is tried. You know, they attempt
S1: to foreclose it. Nobody can protect you against that. It
S1: was fraudulent to begin with. Really, what they're trying to
S1: do is just alert you, uh, you know, to, uh,
S1: any kind of fraudulent transfer. Um, so in that case,
S1: I would just say, you know, let's not add unnecessary expense. Now,
S1: if you can afford it, and it gives you added
S1: peace of mind, go for it. But for the typical person,
S1: I would say, let's not add this kind of lock
S1: insurance or a title lock subscription. Uh, let's first check
S1: with our county deeds and records office and see if
S1: they will put an electronic alert on there for you, um,
S1: so that you can essentially do this yourself. I hope
S1: that helps. Hey, I'm glad we were able to tackle
S1: some questions for you today. Those come in by email
S1: and if you want to send one along, you can
S1: send it to ask Rob at com. You can also
S1: go to Moody's website, Moody Radio.com. That's Moody radio. All right.
S1: We're going to take a quick break. My understanding is we, uh,
S1: did get the phones. So if you have a question,
S1: now's the time to call 800 525 7000. Again, that
S1: number 800 525 7000. We'd love to hear from you today.
S1: A quick break and back with more after this. Stay
S1: with us.
S4: Great to have you with us today on Faith in
S4: Finance Live. We're looking.
S1: Forward.
S4: To.
S1: Taking your calls.
S4: And questions today.
S1: That number to call 800 525 7000. It's 800 525 7000.
S1: Our team is standing by. We'd love to tackle whatever
S1: is on your mind today. Let's head to the phones. Osceola,
S1: Indiana is where Dick's located. Go ahead, sir.
S5: Well. Good afternoon Rob. Glad to talk with you. I
S5: have been blessed over the years through the financial counseling
S5: that Moody's had on their programs, and that has helped
S5: us to be very diligent with our finances and in
S5: tithing and giving extra gifts. We're both retired now, and
S5: the we needed to take some money out to do
S5: some renovations on our house, and it was $50,000. And
S5: I'm just wondering, this has already been tied on, but
S5: there's the increase that came for having it in a
S5: 401 K and now an IRA. How would you recommend
S5: we determine how much to tithe from that amount of money?
S1: Yeah. Very good. Well, Dick, thanks for your testimony to
S1: the important work of Moody Radio and delighted that we've
S1: been able to be a small part of your journey
S1: and giving testimony to the to the Lord's faithfulness. And
S1: so thrilled to hear that you've been a regular giver.
S1: So this money that we're talking about here, what did
S1: you say the amount was?
S5: It's a $50,000.
S1: Okay. And you pulled it from a retirement account?
S5: Yes.
S1: Okay. Yeah. So the the money that you put into
S1: the retirement account, um, whether that was by way of
S1: a salary deferral or an IRA contribution, if you were
S1: tithing on the gross, you tithed already on the principal
S1: amount that you put in. Now, what you're acknowledging is
S1: that some portion of what you're pulling out is, you know,
S1: part of that would be the gain inside that account.
S1: Is that correct?
S5: Yes.
S1: That's correct. Yeah. Great. So what is the total of
S1: your contributions? Do you do you have a record of that?
S5: I have that I don't have that handy. But we
S5: give 10% to our church. And then there are a
S5: number of ministries that we have given to for years
S5: that is beyond the 10%.
S1: Okay. Yeah. And I was actually. And then that's helpful.
S1: I was actually referring to the contributions into that retirement account.
S1: Do you know what the total amount of what you've
S1: put in is. So then we could determine how much
S1: beyond that would be equal to the, the gain or
S1: the increase that you've had in that account?
S5: No, I don't have that figure. But it would have been,
S5: you know, when when I, we tithed on the gross
S5: amount that we made as we worked and then um,
S5: from that, um, we had given to our 401 and
S5: then on retirement, we converted those to IRAs.
S1: Gotcha. Yeah. So that might be difficult to back into.
S1: I mean, ideally what we'd be able to do is say, okay,
S1: and I'm just going to use round numbers here. Let's
S1: say you put in you know we'll just use something
S1: simple 100,000. I'm sure it's a lot more than that
S1: over the years. And now it's 150. Um, then, you know,
S1: the the total gain on that would be 50,000 and
S1: we could say, okay, what portion of that? Well, it
S1: happens to be 50%. Uh, of of what you have
S1: now is, uh, resulting from the gain. And so we
S1: could apply that percentage to every withdrawal and say, okay,
S1: you know, half of everything I take out was what
S1: I put in, and half is considered the increase. And
S1: therefore I'm going to tithe on half of every check
S1: I take. Um, if you can't do that, uh, you
S1: could just use, you know, that as a ballpark number
S1: to say, okay, I'm going to assign some percentage that
S1: represents the increased portion of every check, and then we're
S1: going to give a tithe on that, recognizing you're giving
S1: above and beyond that with other giving. Um, but at
S1: least for every check you pull out. That would give
S1: you some, you know, percentage that you could apply to say,
S1: this is, you know, representative of the increase. And we're
S1: going to take a 10th of that and we're going
S1: to give it back, you know, to our local church
S1: as unto the Lord. Does that make sense?
S5: Yes. And I appreciate that. That's I think good wise counsel.
S5: So thank you Rob.
S1: Absolutely, Dick. We appreciate your call. Call anytime. If we
S1: can help you with anything. Uh, we'd love to chat
S1: with you. 800 525 7000 is the number to call.
S1: If you'd like to be a part of the program today,
S1: we'd love to have you. Let's go to Grand Rapids. Hi, Valerie.
S1: Go ahead.
S6: Hello. Um, yeah, I'm dpoa for my aunt, who is
S6: a very generous giver all of her life. And, um,
S6: although when her dementia went and she was maybe giving
S6: to some things that weren't wise, um, but she was
S6: able to kind of, you know, could see what she
S6: gave to and gave, did some giving early on. Not
S6: as much as the 50% she was giving away sometimes,
S6: but now she really can't. She wants she still has
S6: the heart for missions and. But it just tells me,
S6: you know, you do what's right. I can't think about that. Um,
S6: but now they're, you know, she's in an assisted living
S6: and she's needed increasing care. So it's fairly expensive and
S6: it's going up $300 a month, you know, starting this year.
S6: So she has 6 to 7 years left of investment
S6: if she stays at this level. But that's barring any
S6: medical things or other things that could come up too.
S6: So I'm trying to figure out what's the responsible thing.
S6: Do I still give in faith or is that would
S6: that come back and I'd have to justify that or
S6: would go, you know, yes, she goes on Medicaid. They
S6: go after the people she gave to or what?
S1: Yes. Well, I can appreciate that because I, I'm, I
S1: love the fact that you want to honor her desires
S1: and generous heart as you steward on behalf of her
S1: because she's unable to do so cognitively. These resources. And
S1: yet I would just say as her guardian, Valerie, your
S1: first obligation is to care for your aunt. And so
S1: I would say in, you know, your desire to to
S1: make sure that her needs, needs are met and that
S1: she can live comfortably, that would be my primary objective.
S1: And you know, the extent to which there's something left over. Obviously,
S1: not all that money can be given away to charity. Um,
S1: you know, if she had, you know, far more than
S1: you believe she would need, then I think, you know, honoring,
S1: continuing to give to missions and honoring that desire that,
S1: you know, was so clear just in the way she
S1: lived her life would be great, but it just doesn't
S1: sound like that's the situation that we're in. And, you know,
S1: she is ultimately the steward, but she's unable to make
S1: those decisions. The Lord doesn't need her money, and she
S1: clearly was very generous as an act of worship to
S1: the Lord. When she was able to do so. But
S1: I think at this point, if it were me, my
S1: primary objective, at least with these resources, not talking about
S1: your own with these resources, would be to ensure that
S1: everything that the Lord has entrusted to her is available
S1: for her care, and that would be my primary focus.
S6: Okay. I have another question. I mean, it was good
S6: when she finally did. I mean, she was very private
S6: about stuff. She'd just started letting me understand her finances.
S6: But then the people she invested with, we were able
S6: to track things and get things on him. But right now,
S6: we've got another man who had started a ministry in
S6: a nursing home. We've kind of taken over when he couldn't, but, um,
S6: his we've kind of come to, ah, and don't even
S6: know how to go about, you know, who, what kind
S6: of person would be the best to even sort this out,
S6: or whether we're better, better just letting it take its flow.
S6: And when it comes to a crisis. Somebody else should
S6: do something.
S1: Yeah, I think it'd be good to get somebody in
S1: there to just try to help. Take a look at that. Um,
S1: there is a resource that we offer that are called
S1: Certified Christian Financial Counselors, and they specialize in budgets and
S1: spending plans and, you know, debt plans and helping people
S1: just kind of get, uh, things in, in proper order
S1: with regard to managing finances. Um, so this is not
S1: a financial advisor or a wealth manager really more focused
S1: on the mechanics of personal finance. So head to our website.
S1: Com click find a professional. If you choose budgeting or
S1: debt you'll get a list of certified Christian financial counselors.
S1: Anyone can help. Thanks for your call. Thanks for joining
S1: us today on Faith and Finance Live. I'm Rob West
S1: here in our final segment today. We want to get
S1: to as many calls as we can. So if you
S1: have a question call right now. Anything going on in
S1: your financial life. 800 525 7000. We did have a
S1: small glitch with our phone system, but that has been
S1: reset and we're ready to go. So if you got
S1: a busy signal earlier, now's the time to try again
S1: with those financial questions. 800 525 7000. A Coral Springs, Florida,
S1: is where we're headed next. Laverne, thanks for calling. Go ahead.
S7: Thanks for taking my call, Rob. Okay, so my husband
S7: and I, we sold our primary home last year, and
S7: we're going to invest it in multifamily. Uh, that didn't
S7: work out. We're still going to do that. However, we
S7: have another building that I'm running my business out of.
S7: We have a mortgage balance of 180. The interest rate
S7: is 3.75. So we're thinking of paying off that 180
S7: by doubling the mortgage over two and a half years
S7: versus 24 years. Is that a good idea?
S1: Yeah. So let's talk through this. I mean, I never
S1: would be opposed to you paying off a mortgage early.
S1: It is a low interest rate. And so I'd want
S1: to understand just the opportunity cost of what you're giving
S1: up by putting that money into this illiquid asset of
S1: a home. Um, but let me just make sure I
S1: understood what you said. Did you say you already did
S1: sell your primary residence?
S7: Yes we did.
S1: Okay. So what is this property here with the 3.25%?
S7: Okay. So it's an investment property. We're temporarily staying there.
S7: We were renting for a year, which was 30,000 for
S7: that year. So we decided to pretend we're still paying
S7: that rent, put it on the mortgage and pay it
S7: off in two and a half years versus 24 years
S7: to save that interest.
S1: Yeah. Okay. And so where would that money come from?
S1: So you in two and a half years, you're going
S1: to pay off 180,000. Is that right?
S7: That's how I work it out at the mortgage we're
S7: paying now. Plus, adding the rent that we were paying,
S7: which was about 3000. So we would add that extra
S7: 3000 to the mortgage to be mortgage free in.
S8: A half years.
S1: So that's about six. I mean, what about 7000 a month?
S1: You're going to send to cover the.
S8: Interest a little over.
S7: 6000 a month, correct?
S8: Yes.
S1: Okay. Yeah. And, um, what other assets do you have
S1: right now?
S7: Well, we we have the money from the primary. Uh,
S7: it's about 200,000.
S1: Okay.
S7: And we have about 16,000 in business credit card debt
S7: and about 3000 in personal, which get paid off every month.
S8: Okay.
S1: Yeah. Um, but you don't have any retirement accounts or
S1: anything like that?
S7: No.
S1: Okay. Yeah. I mean, the only thing I would say is,
S1: you know, there's not a whole lot of diversification there.
S1: I mean, you would have pretty much all of your
S1: assets tied up in real estate, which there's nothing wrong
S1: with real estate. Uh, it's just that, you know, you
S1: you don't have anything working in a tax deferred environment,
S1: and you are all in one asset class. That asset
S1: class being real estate. Now that real estate is going
S1: to appreciate regardless of whether you pay off the mortgage.
S1: So really, you know, all you're doing is you're saving
S1: the 3.75%. And the reality is, you know, if you
S1: were to take that same, uh, you know, I don't
S1: know whether what is it, 3000 a month or 36,000
S1: a year and put it away elsewhere. Um, you know,
S1: you could probably, you know, it wouldn't be that difficult
S1: for you to outpace that 3.75%. And at the same time,
S1: you'd be further diversifying Crucifying yourself, um, among asset classes.
S1: So in addition to real estate, you'd have some in
S1: stocks and bonds, which is more liquid? Uh, because if
S1: you ever need to get to it, you could, you know,
S1: sell the stocks or bonds and have the money, whereas,
S1: as you know, it's it's more illiquid. Um, you know,
S1: with real estate, you've got transaction costs and it takes
S1: time to sell. So unless you all just are obviously
S1: you like real estate a lot, but unless you're just
S1: opposed to investing in the market, um, and therefore you'd
S1: rather just keep everything in your real estate, I would say, uh,
S1: especially given that you're planning to buy a multifamily property
S1: here with the proceeds of the primary residence. I would
S1: probably just ride that mortgage out, um, at a low
S1: rate and and get that money invested so that you've
S1: got something that can be growing for your future alongside
S1: the appreciation of that real estate. Does that make sense?
S7: Yes it does. Thank you so much.
S1: Yeah. And I. You're welcome. I try to get as
S1: much of that going into a in a retirement account
S1: as possible if you do that. So I'd probably use
S1: Roth IRAs. Are you all over the age of 50?
S7: Uh, yes. We both are.
S8: Okay.
S1: Yeah. So you would be able to, uh, to put
S1: in $8,000 each for the year, so 16,000, uh, for 2025,
S1: and then you could turn around and do that again,
S1: perhaps even a little bit more for 2026. The additional
S1: amount beyond those IRAs, you'd have to put in a
S1: taxable account, but you still could, you know, get that
S1: money working for you, uh, and make it and invest it.
S1: So hopefully that gives you some things to think about. Laverne,
S1: sounds like you and your husband are doing a great
S1: job managing all this, and we appreciate your call today. Uh,
S1: Tampa Bay is where we're headed next. Uh, Christina, go
S1: right ahead.
S9: Hello. How are you? Rob? Thanks for taking my call.
S1: Absolutely. Thank you.
S9: So my question today is, I'm probably on the opposite
S9: spectrum from a lot of people that call you. Um,
S9: I'm 47. I just started my career after being a
S9: stay at home mom. That was my number one job,
S9: and I'm grateful to God that I was able to
S9: do that. Um, got my dream job. Um, went back
S9: to school, got my bachelor's degree. I'm making okay money.
S9: I they offer at my job, they offer a 403
S9: B for retirement. I don't have any retirement. Never have
S9: had retirement from. Because I didn't have a career. Didn't
S9: have a job. Um, my question is this. They will
S9: start matching 3%. They have two options. One is like
S9: a pre-tax and the other one is a Roth. I
S9: think that's post tax. Um, they will match up to 3%
S9: after one year. Should I start putting money into that
S9: right now, or should I wait until they start matching?
S9: I'm not sure what to do, and I'm not exactly
S9: sure how much I should start putting in that account. Um,
S9: we're still trying to get out of debt and stuff
S9: and catch up.
S1: Okay? Yeah. Very good. Well, first of all, you did
S1: have a job and an amazing one at that. So
S1: I'm delighted to hear that. But now that you're transitioning
S1: to this next chapter and you've got, uh, a different
S1: type of work that you're excited about, I'm thrilled for
S1: you in that as well. And yeah, this is a
S1: great opportunity for you to start putting some money away.
S1: I'm not terribly concerned about the fact that there's not
S1: matching for the first year, especially with it. Sounds like
S1: your company gives you the option of a a Roth
S1: 403 B. That's great. That means you can put in
S1: the after tax money. Um, and then it'll grow tax
S1: free and then you'll get that bonus, that kicker in
S1: 12 months where they're going to start to match it.
S1: But I think the key for you right now is
S1: to get something going into retirement savings. And the Roth
S1: 401 is a great option. And you have a lot
S1: more room to put in more money, um, you know,
S1: than you do with the IRA. Um, and you wouldn't
S1: get any matching on that either, so you might as
S1: well just keep it in the, in the for three b.
S1: I think the only question is based on what you
S1: said right there at the tail end, if you have
S1: high interest consumer debt, I would wait until that's paid
S1: off before you start putting money into the 403 B,
S1: because that's probably at a much higher interest rate than
S1: you would expect to earn reasonably on this 403 B account.
S1: So what what type of debt are you all still
S1: working on? Is it credit cards or something else?
S9: Yeah, we have credit card debt. Um, we still have
S9: our mortgage and we have some used cars. We didn't
S9: want to buy brand new after dealing with some stuff
S9: and doing having just really bad luck with deals. Um,
S9: we have very small, like car payments with lower. I mean,
S9: they're not super low, but our balances are not extraordinarily
S9: high like they would be with a brand new car.
S9: So the goal is to try to pay those off
S9: and and get out of some of that debt. And
S9: then of course, the credit card debt. It's not astronomical,
S9: but it's enough where we probably should pay that stuff
S9: off first.
S1: Yeah, I would totally agree with that. Not necessarily the cars.
S1: I mean, if you have a conviction about that, go ahead.
S1: But a lot of times, you know, as long as
S1: you you didn't buy too much car and it sounds
S1: like you guys were really thoughtful about what you did there.
S1: I just work that into your spending plan, and I
S1: would take advantage of this opportunity to get that compounding
S1: working for you in that four A, three B. But
S1: I would prioritize the credit card debt first, because if
S1: that's at an interest rate north of 20%, we want
S1: to get rid of that as quickly as we can.
S1: So if you delaying the 403 B contributions means you
S1: can get out from under that credit card debt quicker. Great.
S1: Let's do it. The second thing is, I'd love for
S1: you to have at least one month's worth of emergency
S1: funds in there before you start the 403 B, and
S1: then let's start the four of three B contributions. So
S1: long as you've got at least something going into that
S1: emergency fund every month. So even if it's slow, we're
S1: getting on our way to the 3 to 6 months
S1: expenses you really want. Ultimately, I'd love for you to
S1: be putting 10 to 15% of your pay in that
S1: 403 B, but if you need to delay that because
S1: you know you're still working on the credit cards or
S1: because you're still working on the emergency fund, then that's fine.
S1: But as soon as you can, I'd get that money
S1: going in the 403 B even before the matching kicks in.
S9: Awesome. Thank you so much Rob I appreciate it.
S1: Absolutely. Thanks for your call today. Uh, Lisa, I apologize
S1: we didn't get to you. We're about out of time today. Uh,
S1: they're in Fort Lauderdale, but I'd love to get you
S1: on tomorrow's broadcast. So if you want to hold the line. Uh, Lisa,
S1: we'll see if we can get you scheduled for tomorrow's show.
S1: And we appreciate your call today. Well, folks, uh, boy,
S1: what a treat to be along with you today to
S1: help you think through your role in managing God's money. Hey,
S1: before we wrap up today, let me just invite you
S1: to become a faithful partner. Uh, partners are a key
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