1 00:00:08,720 --> 00:00:11,240 S1: Money has a way of reaching places in our lives 2 00:00:11,240 --> 00:00:14,960 S1: that nothing else does. It touches our fears, our desires, 3 00:00:14,960 --> 00:00:19,440 S1: our relationships, and our sense of security. Hi, I'm Rob West. 4 00:00:19,440 --> 00:00:21,960 S1: That's why Jesus said, where your treasure is, there your 5 00:00:21,960 --> 00:00:25,200 S1: heart will be also. He knew something we often miss. 6 00:00:25,239 --> 00:00:28,800 S1: Money issues are hard issues. Today we're exploring how our 7 00:00:28,800 --> 00:00:32,600 S1: financial lives reveal what's happening inside us and how God 8 00:00:32,600 --> 00:00:35,519 S1: invites us into freedom and trust. And then it's on 9 00:00:35,520 --> 00:00:40,600 S1: to your calls at 800 525 7000. That's 805, two 10 00:00:40,640 --> 00:00:45,000 S1: five 7000. This is faith and finance. Live. Biblical wisdom 11 00:00:45,000 --> 00:00:50,800 S1: for your financial decisions. Years ago, my friend and mentor, 12 00:00:50,800 --> 00:00:53,200 S1: Ron Blue told me a story from his time in 13 00:00:53,200 --> 00:00:56,880 S1: Kenya that has shaped my entire approach to stewardship. He 14 00:00:56,880 --> 00:00:59,890 S1: was sitting on a hillside with a local pastor. They 15 00:00:59,890 --> 00:01:02,810 S1: were looking out over the village where the man lived, 16 00:01:02,810 --> 00:01:06,289 S1: and Ron asked what he thought was a practical question. 17 00:01:06,490 --> 00:01:08,970 S1: He said, what's the greatest barrier to the spread of 18 00:01:08,970 --> 00:01:12,330 S1: the gospel here? Remember, he's in Kenya. He expected to 19 00:01:12,370 --> 00:01:16,050 S1: hear about money, transportation, or a lack of resources, but 20 00:01:16,050 --> 00:01:20,530 S1: the pastor didn't hesitate. He said materialism. Ron was stunned. 21 00:01:20,730 --> 00:01:24,610 S1: Surely materialism was a Western issue. But the pastor went on, 22 00:01:24,610 --> 00:01:26,610 S1: he said, if a man has a mud hut, he 23 00:01:26,610 --> 00:01:28,770 S1: wants a stone hut. If he has a thatched roof, 24 00:01:28,770 --> 00:01:31,289 S1: he wants a metal one. If he has one cow, 25 00:01:31,290 --> 00:01:35,809 S1: he wants two. Well, in that moment, Ron realized something profound. 26 00:01:35,810 --> 00:01:39,170 S1: Materialism is not about how much you have. It's about 27 00:01:39,170 --> 00:01:43,050 S1: what your heart longs for. Because if materialism can thrive 28 00:01:43,050 --> 00:01:45,729 S1: in a mud hut every bit as easily as in 29 00:01:45,770 --> 00:01:49,530 S1: an American suburb, then money is not the root problem. 30 00:01:49,570 --> 00:01:54,570 S1: The heart is money simply exposes what's already there our desires, 31 00:01:54,570 --> 00:01:59,620 S1: our fears, our loyalties, our trust. That's exactly what Jesus 32 00:01:59,620 --> 00:02:03,980 S1: teaches here. Money isn't moral or immoral, it's a tool. 33 00:02:03,980 --> 00:02:07,060 S1: But because it touches nearly every part of our life, 34 00:02:07,180 --> 00:02:11,180 S1: it becomes one of the greatest indicators of what we trust, desire, 35 00:02:11,180 --> 00:02:15,139 S1: and worship. When we overspend, it may reflect a longing 36 00:02:15,139 --> 00:02:18,500 S1: for identity or approval. When we cling tightly to savings, 37 00:02:18,500 --> 00:02:21,619 S1: it may reveal where we seek security. When we fall 38 00:02:21,620 --> 00:02:24,620 S1: into debt, it might reveal impatience or a desire to 39 00:02:24,660 --> 00:02:29,540 S1: live outside of God's provision. When we resist generosity, it 40 00:02:29,540 --> 00:02:34,060 S1: may reveal fear that God won't provide. In all these cases, 41 00:02:34,060 --> 00:02:37,859 S1: the dollars are secondary. The heart is primary. The good 42 00:02:37,860 --> 00:02:40,940 S1: news is this God cares deeply about the state of 43 00:02:40,940 --> 00:02:44,660 S1: our hearts, and he invites us to experience freedom. Freedom 44 00:02:44,660 --> 00:02:48,660 S1: from fear, from comparison, from striving, from the false belief 45 00:02:48,660 --> 00:02:52,740 S1: that everything depends on us. Over years of studying scripture 46 00:02:52,740 --> 00:02:56,460 S1: and walking with listeners and families through financial decisions, a 47 00:02:56,460 --> 00:03:00,590 S1: few core truths have become foundational for me. First, God 48 00:03:00,590 --> 00:03:06,110 S1: owns it all. Ownership determines responsibility. If everything belongs to him, 49 00:03:06,110 --> 00:03:08,910 S1: then we stop clinging to money as if our lives 50 00:03:08,910 --> 00:03:12,589 S1: depend on it. We begin managing it as stewards, grateful, 51 00:03:12,630 --> 00:03:17,070 S1: humble and free. Second, God is our provider. The scriptures 52 00:03:17,070 --> 00:03:20,510 S1: remind us that he feeds the birds and clothes the lilies, 53 00:03:20,510 --> 00:03:23,910 S1: and we, his children, are worth far more. When we 54 00:03:23,910 --> 00:03:28,070 S1: believe that, fear begins to loosen its grip. Third, money 55 00:03:28,070 --> 00:03:30,989 S1: is a tool, not a treasure. It was never meant 56 00:03:30,990 --> 00:03:33,790 S1: to bear the weight of our identity or security. It 57 00:03:33,790 --> 00:03:37,710 S1: was meant to serve God's purposes, meeting needs, blessing others, 58 00:03:37,710 --> 00:03:41,310 S1: advancing the gospel, and reflecting the generosity of the one 59 00:03:41,310 --> 00:03:46,070 S1: who gave everything for us. And fourth, our financial decisions, 60 00:03:46,070 --> 00:03:50,870 S1: our acts of worship. Every spending choice, every giving decision, 61 00:03:50,870 --> 00:03:54,710 S1: every act of planning becomes an opportunity to honor God. 62 00:03:54,710 --> 00:03:58,160 S1: When we begin asking, how can I serve you with this? 63 00:03:58,160 --> 00:04:02,360 S1: Money stops being a rival and becomes a means of discipleship. 64 00:04:02,760 --> 00:04:07,160 S1: These aren't theoretical ideas. They're the truths that shape every 65 00:04:07,160 --> 00:04:10,680 S1: page of my new devotional. Our ultimate treasure. It's a 66 00:04:10,680 --> 00:04:14,120 S1: 21 day journey to faithful stewardship. I wrote it to 67 00:04:14,160 --> 00:04:18,200 S1: help you walk through these core biblical principles and see 68 00:04:18,200 --> 00:04:22,160 S1: how deeply they shape your daily financial decisions. Here's my 69 00:04:22,160 --> 00:04:25,520 S1: hope that as you read it, you'll experience God's peace 70 00:04:25,520 --> 00:04:30,280 S1: growing where fear once lived, contentment where comparison once thrived, 71 00:04:30,279 --> 00:04:34,920 S1: and generosity where self-protection once dominated. If you'd like to 72 00:04:34,960 --> 00:04:38,520 S1: pre-order your copy or even place a bulk order, it 73 00:04:38,520 --> 00:04:42,760 S1: officially releases next month. Just visit Faith. Com and click 74 00:04:42,800 --> 00:04:46,039 S1: Shop Now. Later this month, you'll actually be able to 75 00:04:46,080 --> 00:04:49,120 S1: access it in a digital version as well. Inside the 76 00:04:49,120 --> 00:04:52,200 S1: Faith app when you become a faithful partner. Simply go 77 00:04:52,200 --> 00:04:58,969 S1: to faith. Dot com slash partner. That's faithful to support 78 00:04:58,970 --> 00:05:02,010 S1: the ministry with a gift of $35 a month or 79 00:05:02,010 --> 00:05:06,330 S1: $400 annually. Folks, in the end, money will always reveal 80 00:05:06,330 --> 00:05:10,010 S1: what we treasure most. And when Christ is our ultimate treasure, 81 00:05:10,010 --> 00:05:13,610 S1: we experience a freedom no amount of money can offer. 82 00:05:13,930 --> 00:05:18,489 S1: All right, your calls are next. 800 525 7000. This 83 00:05:18,490 --> 00:05:22,930 S1: is faith and finance. Live. Biblical wisdom for your financial decisions. 84 00:05:22,970 --> 00:05:23,690 S1: Stick around. 85 00:05:36,810 --> 00:05:40,170 S2: The opinions offered during this program represent the personal or 86 00:05:40,170 --> 00:05:45,010 S2: professional opinions of the participants, given for informational purposes only. 87 00:05:45,250 --> 00:05:48,849 S2: Any information provided is not intended to replace advice from 88 00:05:48,850 --> 00:05:53,750 S2: a financial, medical, legal, or other professional who understands your 89 00:05:53,750 --> 00:05:55,109 S2: specific situation. 90 00:05:59,910 --> 00:06:01,669 S1: Well, so glad to have you along with us today 91 00:06:01,670 --> 00:06:04,669 S1: on Faith and Finance live. I'm Rob West. Great to 92 00:06:04,670 --> 00:06:07,790 S1: be back in the studio. Looking forward to taking your 93 00:06:07,790 --> 00:06:10,350 S1: calls and questions today. So if you'd like to get 94 00:06:10,350 --> 00:06:12,550 S1: in on the conversation, the best way to do that 95 00:06:12,550 --> 00:06:17,469 S1: is to pick up the phone 800 525 7000. Again, 96 00:06:17,470 --> 00:06:23,270 S1: that's 800 525 7000. We will tackle whatever financial questions 97 00:06:23,270 --> 00:06:26,270 S1: you're thinking about today as we start a new year. 98 00:06:26,270 --> 00:06:28,750 S1: We'd love to hear from you again. That number 800 99 00:06:28,790 --> 00:06:32,510 S1: 525 7000. I trust you had a great Christmas. I know, 100 00:06:32,510 --> 00:06:35,909 S1: I certainly did. It was nice to have a slower rhythm, 101 00:06:35,910 --> 00:06:38,990 S1: more time with family. It was the last Christmas before 102 00:06:38,990 --> 00:06:42,630 S1: my oldest gets married, and we're incredibly excited about that. 103 00:06:42,630 --> 00:06:45,710 S1: But it did make it a bit special. My wife 104 00:06:45,710 --> 00:06:49,390 S1: was thinking about every moment and how we could maximize 105 00:06:49,950 --> 00:06:52,720 S1: that time together, because things will be different. As much 106 00:06:52,720 --> 00:06:56,360 S1: as we're excited and love the direction he's headed. Can't 107 00:06:56,360 --> 00:07:02,159 S1: wait to invite his amazing fiance into our family more formally. 108 00:07:02,320 --> 00:07:05,200 S1: But it was a special Christmas. I trust it was 109 00:07:05,200 --> 00:07:08,520 S1: for you. Family and friends as you celebrated the birth 110 00:07:08,520 --> 00:07:10,240 S1: of Christ. And now here we are in a new 111 00:07:10,240 --> 00:07:13,280 S1: year and what an opportunity to be able to think 112 00:07:13,280 --> 00:07:15,920 S1: about what God has in store for us this year. 113 00:07:15,920 --> 00:07:20,080 S1: How we can live as faithful stewards, aligning our hearts 114 00:07:20,080 --> 00:07:23,840 S1: with the heart of the master, managing faithfully the resources 115 00:07:23,840 --> 00:07:26,320 S1: entrusted to us. That's our goal each day on this 116 00:07:26,320 --> 00:07:29,120 S1: program to help you do that, to live as a 117 00:07:29,120 --> 00:07:31,960 S1: faithful steward. So if you have a question today, we'd 118 00:07:31,960 --> 00:07:34,640 S1: love to be able to get really practical and helpful 119 00:07:34,960 --> 00:07:37,679 S1: applying the principles we see in God's Word to the 120 00:07:37,720 --> 00:07:42,240 S1: specific financial questions and issues you're wrestling with call right now. 121 00:07:42,240 --> 00:07:45,080 S1: We'd love to get you in on the conversation. 800 122 00:07:45,080 --> 00:07:51,690 S1: 525 7000. That's 800 525 7000 before we head to 123 00:07:51,690 --> 00:07:55,050 S1: the phones today in the news, student loan borrowers whose 124 00:07:55,050 --> 00:07:59,810 S1: debt is forgiven in 2026 or later could face a 125 00:07:59,810 --> 00:08:03,810 S1: significant federal tax bill. Here's why a provision in the 126 00:08:03,810 --> 00:08:09,490 S1: American Rescue Plan Act of 2021 temporarily made student loan 127 00:08:09,490 --> 00:08:13,410 S1: forgiveness tax free at the federal level. Well, that protection 128 00:08:13,410 --> 00:08:18,810 S1: expired on December 31st, and President Trump's recent tax legislation 129 00:08:19,010 --> 00:08:23,650 S1: did not extend it. As a result, forgiveness under specifically 130 00:08:23,850 --> 00:08:29,210 S1: income driven repayment plans typically granted after 20 or 25 131 00:08:29,250 --> 00:08:34,210 S1: years years will once again be treated as taxable income. 132 00:08:34,490 --> 00:08:40,170 S1: Many borrowers are approaching those milestones. The potential impact is substantial. 133 00:08:40,210 --> 00:08:46,689 S1: The average balance forgiven under these IDR plans is around $57,000. 134 00:08:46,890 --> 00:08:50,100 S1: So for someone in the 22% tax bracket. That could 135 00:08:50,100 --> 00:08:53,700 S1: mean a tax bill of $12,000 or more, with some 136 00:08:53,700 --> 00:08:57,820 S1: borrowers also facing state taxes. Now, keep in mind this 137 00:08:57,820 --> 00:09:02,660 S1: is different than the Public service loan forgiveness. The PS, 138 00:09:03,660 --> 00:09:08,420 S1: which remains tax free. But under these income driven repayment 139 00:09:08,420 --> 00:09:14,420 S1: forgiveness options, certainly taxes will apply. Moving forward beginning this year. 140 00:09:14,420 --> 00:09:18,059 S1: So you should begin by planning now and estimating the 141 00:09:18,140 --> 00:09:22,420 S1: tax impact, setting funds aside so it doesn't catch you 142 00:09:22,420 --> 00:09:25,660 S1: by surprise. Um, we know when it does that could 143 00:09:25,660 --> 00:09:29,580 S1: result in penalties and interest if you're not able to pay. 144 00:09:29,580 --> 00:09:32,300 S1: So just be aware of that. All right. We're ready 145 00:09:32,300 --> 00:09:35,260 S1: to dive into your questions today. Again that number 800 146 00:09:35,300 --> 00:09:39,980 S1: 525 7000. You can call right now. Uh, let's begin 147 00:09:39,980 --> 00:09:42,340 S1: in New Hampshire today. Barbara. Go right ahead. 148 00:09:43,660 --> 00:09:45,100 S3: Hey, Rob. Happy new year. 149 00:09:45,460 --> 00:09:46,780 S1: Thank you to you as well. 150 00:09:48,270 --> 00:09:55,070 S3: Uh. Quick question. My mother recently sold her home, and we. 151 00:09:55,230 --> 00:10:00,670 S3: She's 92 years old, and she lives in a, um, 152 00:10:01,070 --> 00:10:08,510 S3: retirement village now. And I was advising her, um, basically 153 00:10:08,510 --> 00:10:11,990 S3: what to do with the money, so it just doesn't 154 00:10:11,990 --> 00:10:16,990 S3: sit there. And what I have advised her to do. And. 155 00:10:17,030 --> 00:10:18,910 S3: And this is why I'm calling you. I just want 156 00:10:18,910 --> 00:10:23,189 S3: to double check and see if my advice is, is, um, 157 00:10:23,830 --> 00:10:27,189 S3: you know, if it's good advice or not. Um, given 158 00:10:27,190 --> 00:10:30,030 S3: her age, and I'm trying to keep it really simple 159 00:10:30,030 --> 00:10:33,110 S3: for her. Um, just I want to break it up 160 00:10:33,110 --> 00:10:38,550 S3: into two CDs and keep it within her own financial 161 00:10:38,550 --> 00:10:42,750 S3: institution instead of searching around for higher rates. I just 162 00:10:42,750 --> 00:10:45,430 S3: want to keep it simple for her. I was thinking 163 00:10:45,429 --> 00:10:53,400 S3: about putting 240,000 in a long term CD. I'm thinking 164 00:10:53,440 --> 00:10:57,560 S3: 240 because I don't want her to earn so much interest. 165 00:10:57,559 --> 00:10:59,960 S3: She's going to go over the 250 mark and not 166 00:10:59,960 --> 00:11:04,400 S3: be insured. So I was thinking about 240 long term, 167 00:11:05,160 --> 00:11:09,880 S3: and then I was going to, um, advise her to 168 00:11:09,920 --> 00:11:13,120 S3: put about 10,000 in her savings in case she needs 169 00:11:13,120 --> 00:11:18,440 S3: quick access. And then the leftover 40,000 I was going 170 00:11:18,440 --> 00:11:21,199 S3: to tell her to put into a short term CD, 171 00:11:21,679 --> 00:11:25,800 S3: and that's running three months at about 4%. So that 172 00:11:25,800 --> 00:11:28,480 S3: was how I was going to split it up. And 173 00:11:28,480 --> 00:11:31,360 S3: so I'm wondering what your what your take is on that. 174 00:11:31,800 --> 00:11:34,920 S1: Yeah. Yeah, it's a great question. Uh, so one of 175 00:11:34,920 --> 00:11:38,839 S1: the things you can do, uh, is to what's called ladder, 176 00:11:38,880 --> 00:11:42,040 S1: these CDs, and that's essentially what you're getting at. Um, 177 00:11:42,040 --> 00:11:45,090 S1: but depending on where rates are at and how much 178 00:11:45,090 --> 00:11:48,450 S1: liquidity she needs. That's going to drive all of this. 179 00:11:48,450 --> 00:11:51,450 S1: But let's say she were to set aside what she 180 00:11:51,450 --> 00:11:54,410 S1: needs in a money market or a high yield savings. 181 00:11:54,410 --> 00:11:57,890 S1: And you mentioned 10,000. If that's enough, great. If it's not, 182 00:11:57,890 --> 00:12:02,089 S1: let's increase that. But whatever portion she could lock up, 183 00:12:02,090 --> 00:12:05,250 S1: let's say for 12 months, one option would be she 184 00:12:05,250 --> 00:12:07,290 S1: puts a third of it in a one year, a 185 00:12:07,290 --> 00:12:09,930 S1: third and a two year, a third in a three year. 186 00:12:10,330 --> 00:12:13,370 S1: And then every year she would roll it over into 187 00:12:13,370 --> 00:12:18,569 S1: a new three year CD. But because of the staggering 188 00:12:18,610 --> 00:12:22,370 S1: up front, it would ensure that every 12 months one 189 00:12:22,370 --> 00:12:25,449 S1: of those three CDs is coming due. But it allows 190 00:12:25,450 --> 00:12:28,210 S1: you to take full advantage of the higher yields if 191 00:12:28,210 --> 00:12:32,490 S1: they're available by going out longer terms. So again, by 192 00:12:32,490 --> 00:12:35,290 S1: having the one, the two and the three, and then 193 00:12:35,290 --> 00:12:37,690 S1: every time one comes due, you roll it over into 194 00:12:37,690 --> 00:12:41,410 S1: a new three. If you stay on that same cycle, 195 00:12:41,610 --> 00:12:43,819 S1: you know there's always a third of it coming due 196 00:12:43,820 --> 00:12:46,540 S1: every 12 months. The key would be that she has 197 00:12:46,540 --> 00:12:49,620 S1: enough liquidity. Set aside in the high yield savings or 198 00:12:49,620 --> 00:12:52,260 S1: money market to be able to make it for a 199 00:12:52,260 --> 00:12:56,060 S1: full 12 months. Um, so it's similar to what you're describing, 200 00:12:56,059 --> 00:12:59,500 S1: perhaps a little variation of what you had originally suggested, 201 00:12:59,500 --> 00:13:01,260 S1: but give me your thoughts on that. 202 00:13:02,380 --> 00:13:05,980 S3: Um, the bank that she's at, I've looked into the rates. 203 00:13:06,340 --> 00:13:10,579 S3: They don't have very high. Um, they don't have high 204 00:13:10,620 --> 00:13:14,820 S3: rates for, um, a high yield savings. I mean, I've 205 00:13:14,940 --> 00:13:17,059 S3: got to go back and look at it again and 206 00:13:17,059 --> 00:13:19,940 S3: talk to her about the rates, because she, she did 207 00:13:19,940 --> 00:13:21,700 S3: go to the bank and they gave her a bunch 208 00:13:21,700 --> 00:13:25,140 S3: of paperwork with rates on it. Um, I'm not sure 209 00:13:25,140 --> 00:13:27,900 S3: if this bank offers a ladder CD, so that'll be 210 00:13:27,900 --> 00:13:30,540 S3: something I can I can talk to her about, because 211 00:13:30,540 --> 00:13:33,980 S3: I had actually looked into those. I wasn't really sure 212 00:13:33,980 --> 00:13:39,020 S3: about them. Um, so that's another option that we can 213 00:13:39,020 --> 00:13:42,830 S3: look into. She has an appointment Wednesday to sit down 214 00:13:42,830 --> 00:13:47,070 S3: with the banker to talk about all these options. So. Yeah. 215 00:13:47,470 --> 00:13:51,590 S1: All right. Well, another thing to consider would be, you know, 216 00:13:51,630 --> 00:13:54,790 S1: a lot of folks. Uh, you know, get, uh, focused 217 00:13:54,790 --> 00:13:59,270 S1: on their, their current banking relationship and miss opportunities. Now, 218 00:13:59,270 --> 00:14:01,670 S1: she may not want to move and that's fine. But 219 00:14:01,670 --> 00:14:06,990 S1: for instance, at, uh, Christian Community Credit Union, where her 220 00:14:07,110 --> 00:14:09,630 S1: banking would be aligned with her Christian values, they have 221 00:14:09,630 --> 00:14:12,990 S1: a money market right now up to 100,000 at 4%. 222 00:14:13,230 --> 00:14:16,150 S1: She could look at other options with online banks, but 223 00:14:16,350 --> 00:14:19,110 S1: I think you're headed in the right direction. Let's do this. 224 00:14:19,270 --> 00:14:21,270 S1: I'm headed into a break. You and I can finish 225 00:14:21,270 --> 00:14:22,990 S1: up off the air and just make sure we have 226 00:14:22,990 --> 00:14:26,070 S1: a good game plan for her moving forward. Barbara, thanks 227 00:14:26,070 --> 00:14:28,190 S1: for your call. We'll be right back on Faith and 228 00:14:28,190 --> 00:14:39,510 S1: finance live. Great to have you with us today on 229 00:14:39,510 --> 00:14:42,120 S1: Faith and Finance Live coming up in our final segment today, 230 00:14:42,120 --> 00:14:45,640 S1: Bob Dole stops by. Bob is our resident market guy, 231 00:14:45,640 --> 00:14:49,920 S1: and he's out with his ten annual predictions for 2026. Now, 232 00:14:49,920 --> 00:14:52,600 S1: if you're not familiar with Bob Dole, he manages billions 233 00:14:52,600 --> 00:14:56,000 S1: in the market. He's a Christ follower. He is a 234 00:14:56,000 --> 00:15:01,000 S1: regular contributor on Fox business and CNBC, but he also 235 00:15:01,000 --> 00:15:03,280 S1: is very well known up and down Wall Street for 236 00:15:03,280 --> 00:15:08,720 S1: his ten annual predictions, where he basically analyzes the market 237 00:15:08,720 --> 00:15:11,880 S1: and the economy and will tell you where he thinks 238 00:15:11,920 --> 00:15:15,040 S1: we're headed in the coming year. We'll get a preview 239 00:15:15,040 --> 00:15:17,200 S1: of those ten, and then later this month, we'll do 240 00:15:17,240 --> 00:15:21,120 S1: a deeper dive into all ten predictions. That's in our 241 00:15:21,120 --> 00:15:24,320 S1: final segment today as we help you understand where this 242 00:15:24,320 --> 00:15:27,720 S1: market may be headed in 2026. In the meantime, we're 243 00:15:27,720 --> 00:15:30,440 S1: taking your calls and questions today. If you'd like to 244 00:15:30,480 --> 00:15:33,000 S1: be a part of the program, you have something specific 245 00:15:33,000 --> 00:15:35,880 S1: going on in your financial life. Maybe it's investing, paying 246 00:15:35,880 --> 00:15:39,770 S1: off debt. Perhaps you're looking to give wisely or prepare 247 00:15:39,770 --> 00:15:44,490 S1: the next steward. Just call right now. 800 525 7000. 248 00:15:44,530 --> 00:15:46,690 S1: We've got some lines open. We'd love to hear from 249 00:15:46,690 --> 00:15:49,570 S1: you today. Let's head back to the phones. Pennsylvania is 250 00:15:49,570 --> 00:15:51,970 S1: where we're going next. Rebecca. Go ahead. 251 00:15:53,170 --> 00:15:55,570 S4: Hi. Good afternoon. Thank you so much. It's great to 252 00:15:55,610 --> 00:16:00,250 S4: talk with you. Um, just looking for some guidance on 253 00:16:00,370 --> 00:16:04,770 S4: proper life insurance. Um, my husband and I were in 254 00:16:04,770 --> 00:16:07,850 S4: our early to mid 40s, and we did a 30 255 00:16:07,890 --> 00:16:12,330 S4: year term when we were 20 and bought our first home. And, um, 256 00:16:12,690 --> 00:16:15,850 S4: I know that that's not going to be nearly enough. 257 00:16:15,890 --> 00:16:19,730 S4: It was like a $300,000 policy for my husband. Um, 258 00:16:19,850 --> 00:16:23,850 S4: the house we purchased then was like $75,000. Um, but 259 00:16:23,850 --> 00:16:28,010 S4: we're in a new home, and we have two children, and, um, 260 00:16:28,170 --> 00:16:30,250 S4: I know we need to just get that all updated, 261 00:16:30,250 --> 00:16:32,130 S4: and it's just been bugging me that I know it's 262 00:16:32,130 --> 00:16:34,850 S4: not taken care of, but I just feel overwhelmed and 263 00:16:34,850 --> 00:16:38,270 S4: I'm not really sure where to even go or how 264 00:16:38,270 --> 00:16:41,110 S4: much would be the right rule of thumb to have 265 00:16:41,110 --> 00:16:42,950 S4: for coverage and all of that stuff. 266 00:16:43,350 --> 00:16:45,990 S1: Yeah, yeah. Well, it's a great question, Rebecca, and I 267 00:16:45,990 --> 00:16:50,070 S1: love that you have term policies in place. Uh, that 268 00:16:50,070 --> 00:16:52,830 S1: 30 year policy was probably really cheap. I realize it's 269 00:16:52,830 --> 00:16:56,230 S1: not a ton of coverage. And your situation has changed 270 00:16:56,230 --> 00:16:58,430 S1: with your family and your assets and what it is 271 00:16:58,430 --> 00:17:01,710 S1: you're trying to protect. Um, but now is the time 272 00:17:01,710 --> 00:17:04,230 S1: to go ahead and start looking at either layering another 273 00:17:04,230 --> 00:17:07,990 S1: policy on top or just replacing it all together, you're 274 00:17:07,990 --> 00:17:10,910 S1: probably not going to want to do another 30 year policy. 275 00:17:10,910 --> 00:17:13,710 S1: It would probably be a a 20 year policy, and 276 00:17:13,710 --> 00:17:15,869 S1: it's probably going to be, you know, for quite a 277 00:17:15,869 --> 00:17:18,350 S1: bit more in terms of the death benefit. I mean, 278 00:17:18,390 --> 00:17:22,510 S1: the simple approach is to say, if one spouse died tomorrow, 279 00:17:22,869 --> 00:17:27,950 S1: what income gap would exist and for how long? Because 280 00:17:28,350 --> 00:17:32,389 S1: if either spouse is, you know, contributing to the the 281 00:17:32,390 --> 00:17:35,550 S1: family finances in terms of income and that income were 282 00:17:35,550 --> 00:17:38,520 S1: to go away, What would it take in terms of 283 00:17:38,520 --> 00:17:43,080 S1: a death benefit if invested properly, that would generate or 284 00:17:43,080 --> 00:17:46,480 S1: replace that amount of income? And for what period of time? 285 00:17:46,480 --> 00:17:49,600 S1: Because remember, you get to a point if you continue 286 00:17:49,600 --> 00:17:52,840 S1: on the current track and assuming you're funding retirement in 287 00:17:52,840 --> 00:17:56,840 S1: an appropriate way, maybe 10 to 15% of your income, uh, 288 00:17:56,840 --> 00:17:59,639 S1: and you're slowly, you know, eradicating all of your debt, 289 00:17:59,640 --> 00:18:03,240 S1: including your home mortgage. Excuse me? The idea would be 290 00:18:03,359 --> 00:18:05,880 S1: that you would get to retirement, and the need for 291 00:18:05,880 --> 00:18:09,119 S1: life insurance goes away because you'd get to a place 292 00:18:09,119 --> 00:18:12,840 S1: where you could answer that question. If one spouse died tomorrow, 293 00:18:12,880 --> 00:18:15,840 S1: what income gap would exist? And the answer would be 294 00:18:15,840 --> 00:18:19,280 S1: there wouldn't be any gap because we have retirement assets. 295 00:18:19,280 --> 00:18:22,280 S1: We have Social Security. Uh, you know, we've saved, we 296 00:18:22,280 --> 00:18:25,280 S1: pray down, we've paid down debt, and therefore there's no 297 00:18:25,280 --> 00:18:28,160 S1: longer a need for life insurance. And then someone might say, well, 298 00:18:28,320 --> 00:18:30,560 S1: but wasn't it all for naught? And I would say, no. 299 00:18:30,600 --> 00:18:32,920 S1: I mean, that's kind of the idea of insurance is 300 00:18:32,920 --> 00:18:36,410 S1: we're offsetting the risk, even though we hope we never collect. 301 00:18:36,410 --> 00:18:38,969 S1: It's kind of like your homeowner's policy. You hope you 302 00:18:38,970 --> 00:18:40,930 S1: never have to use it, but you're sure glad you've 303 00:18:40,930 --> 00:18:44,530 S1: got it. And the same is true here for life insurance. Now, 304 00:18:44,530 --> 00:18:50,010 S1: some people try to mix their life insurance with their savings, 305 00:18:50,010 --> 00:18:53,170 S1: and that's not my preferred approach. I'd rather you keep 306 00:18:53,170 --> 00:18:57,330 S1: your savings separate. Do it in a tax deferred environment, 307 00:18:57,330 --> 00:19:00,369 S1: whether that's a Roth IRA or traditional, or a 401 308 00:19:00,369 --> 00:19:04,450 S1: K or 403 B, save at the appropriate levels. But 309 00:19:04,450 --> 00:19:08,730 S1: just by pure insurance, and keep the cost as affordable 310 00:19:08,730 --> 00:19:12,369 S1: as you can and get enough coverage where it truly 311 00:19:12,369 --> 00:19:15,330 S1: offsets the risk. So you asked for a rule of 312 00:19:15,330 --> 00:19:18,410 S1: thumb on how much life insurance. Well, one approach would 313 00:19:18,410 --> 00:19:21,730 S1: be to say, let's just replace the income. And usually 314 00:19:21,730 --> 00:19:25,330 S1: we would say we would want 10 to 12 times 315 00:19:25,650 --> 00:19:29,890 S1: the annual income while dependents rely on it. So if 316 00:19:29,890 --> 00:19:32,929 S1: you're making 60,000 a year, you know you'd want somewhere 317 00:19:32,930 --> 00:19:38,980 S1: between 600 and $750,000 in life insurance on that person, 318 00:19:38,980 --> 00:19:41,180 S1: and if both of you are earning, you would want 319 00:19:41,220 --> 00:19:44,379 S1: policies equal to that on each of you. Um, some 320 00:19:44,380 --> 00:19:48,780 S1: people add to that income replacement debt coverage. So they say, 321 00:19:48,780 --> 00:19:52,220 S1: let's add up the mortgage, plus any other major debts 322 00:19:52,380 --> 00:19:56,790 S1: plus future college costs, and add that to the 10 323 00:19:56,790 --> 00:20:01,379 S1: to 12 times the annual income. And then you could 324 00:20:01,380 --> 00:20:05,659 S1: subtract any savings or investments or existing insurance if you 325 00:20:05,660 --> 00:20:08,980 S1: want to. And ultimately, you'd come up with a goal 326 00:20:08,980 --> 00:20:12,060 S1: for your death benefit. And then you'd say, okay, based 327 00:20:12,060 --> 00:20:15,260 S1: on our age and our health status, you know, we're 328 00:20:15,260 --> 00:20:17,860 S1: going to try to find a 20 year policy which 329 00:20:17,859 --> 00:20:21,659 S1: would get you to your mid 60s, um, in an 330 00:20:21,660 --> 00:20:25,260 S1: affordable way, but making sure you have truly the amount 331 00:20:25,260 --> 00:20:29,340 S1: of death benefit you need to offset that real risk 332 00:20:29,340 --> 00:20:32,340 S1: that exists, that if one of you were to pass away, 333 00:20:32,670 --> 00:20:35,390 S1: You know, the family would be able to maintain its lifestyle. 334 00:20:35,390 --> 00:20:36,429 S1: Does that make sense? 335 00:20:36,470 --> 00:20:40,149 S4: Yes, it definitely does. Yes it does. Thank you so much. 336 00:20:40,190 --> 00:20:42,630 S1: You're welcome. The only other question, then, Rebecca, is where 337 00:20:42,630 --> 00:20:44,510 S1: do I go to get that? And you've got a 338 00:20:44,510 --> 00:20:46,910 S1: couple of options. I mean, you could go online to 339 00:20:47,109 --> 00:20:50,590 S1: Policy Genius or any one of the other online search 340 00:20:50,590 --> 00:20:54,190 S1: vehicles and just look at, you know, which companies have 341 00:20:54,190 --> 00:21:00,389 S1: the highest Am best rating, uh, combined with the lowest premium. And, 342 00:21:00,430 --> 00:21:02,750 S1: you know, just kind of shop it yourself. The other 343 00:21:02,750 --> 00:21:08,669 S1: approach is to find an independent insurance agent who works 344 00:21:08,670 --> 00:21:11,550 S1: primarily in life insurance that could go out and shop 345 00:21:11,550 --> 00:21:14,270 S1: this for you, because depending on your age and your 346 00:21:14,270 --> 00:21:17,990 S1: health status, uh, you know, one company might treat a 347 00:21:17,990 --> 00:21:20,910 S1: certain health condition better than another. Now, if both of 348 00:21:20,910 --> 00:21:24,150 S1: you are relatively healthy, great. But if there's any kind 349 00:21:24,150 --> 00:21:26,910 S1: of underlying health issues, you're going to want to shop 350 00:21:26,910 --> 00:21:30,710 S1: it around. Because, again, not all companies treat each health 351 00:21:30,790 --> 00:21:33,399 S1: issue the same. So you may want to check in 352 00:21:33,400 --> 00:21:37,680 S1: your church, or maybe contact a certified Kingdom advisor in 353 00:21:37,680 --> 00:21:41,200 S1: Pennsylvania and ask for a referral to a life insurance 354 00:21:41,200 --> 00:21:43,760 S1: agent who's independent. If you want to do that, go 355 00:21:43,760 --> 00:21:48,560 S1: to find a. Com but listen, glad you're asking the question. 356 00:21:48,560 --> 00:21:51,960 S1: It's the right one to ask. You haven't. You're not 357 00:21:52,000 --> 00:21:54,000 S1: too late. This is the perfect time for you to 358 00:21:54,000 --> 00:21:57,080 S1: get that next policy that carries you into your 60s. 359 00:21:57,119 --> 00:21:59,360 S1: God bless you. We'll be right back on faith and 360 00:21:59,359 --> 00:22:10,840 S1: finance live. Hey, thanks for joining us today on Faith 361 00:22:10,840 --> 00:22:13,440 S1: and Finance Live. I'm Rob West helping you live as 362 00:22:13,440 --> 00:22:16,639 S1: a wise and faithful steward. Bob Dole, coming up in 363 00:22:16,640 --> 00:22:19,919 S1: our final segment, Bob is out with his ten predictions 364 00:22:19,920 --> 00:22:23,880 S1: for the markets and our economy for 2026. He'll preview 365 00:22:23,920 --> 00:22:26,680 S1: those in our final segment today. Be sure you stick 366 00:22:26,680 --> 00:22:29,119 S1: around for that. In the meantime, we're taking your calls 367 00:22:29,119 --> 00:22:34,929 S1: and questions today on anything financial. The number 800 525 7000. 368 00:22:35,090 --> 00:22:38,010 S1: By the way, I mentioned a few moments ago about 369 00:22:38,050 --> 00:22:41,410 S1: our friends at Christian Community Credit Union, some really exciting 370 00:22:41,410 --> 00:22:45,410 S1: things going on with our preferred banking partner here in 2026, 371 00:22:45,570 --> 00:22:51,530 S1: Kcu is merging with Adelphi, the other major player in 372 00:22:51,530 --> 00:22:55,410 S1: Christian banking. And so together, what will be called eventually 373 00:22:55,450 --> 00:22:59,530 S1: Adelphi Christian Banking is going to be by far the 374 00:22:59,530 --> 00:23:04,410 S1: largest Christian banking institution in the US, and you can 375 00:23:04,410 --> 00:23:11,330 S1: learn more at Faith. That's faith. Com. But for our 376 00:23:11,330 --> 00:23:15,250 S1: Faith Fi listeners, they're offering a bonus of up to $400. 377 00:23:15,410 --> 00:23:19,650 S1: When you open a high yield checking or savings or 378 00:23:19,690 --> 00:23:22,730 S1: visa cash back or their high yield money market account, 379 00:23:22,730 --> 00:23:25,370 S1: as long as you use the code Faith fi. But 380 00:23:25,369 --> 00:23:30,139 S1: being aligned with a partner who's not only sharing your values, 381 00:23:30,140 --> 00:23:33,820 S1: but knowing that every dollar is going to result in 382 00:23:33,859 --> 00:23:37,740 S1: that you put into Kcu is going to result in 383 00:23:37,940 --> 00:23:42,500 S1: giving to a number of incredible Christian ministries on top 384 00:23:42,500 --> 00:23:47,300 S1: of really competitive yields like 4%, up to $100,000 in 385 00:23:47,340 --> 00:23:50,020 S1: their money market is just a really great option that 386 00:23:50,020 --> 00:23:52,580 S1: a lot of Christians are excited about. So if you'd 387 00:23:52,580 --> 00:23:56,540 S1: like to learn more, just head to faith. Com. Let's 388 00:23:56,540 --> 00:23:58,540 S1: take more of your calls and questions. We're going to 389 00:23:58,540 --> 00:24:00,780 S1: head to Georgia. Gaynor, thanks for calling. Go ahead. 390 00:24:01,940 --> 00:24:03,979 S5: Yes, sir. Appreciate you taking my call. 391 00:24:04,220 --> 00:24:04,580 S1: Sure. 392 00:24:04,619 --> 00:24:05,459 S5: How are you today? 393 00:24:05,820 --> 00:24:07,340 S1: Doing great. Thanks for calling. 394 00:24:08,420 --> 00:24:11,740 S5: All right. Uh, had a simple question about. I think 395 00:24:11,740 --> 00:24:14,740 S5: there's different names, but the Trump bucks that might be 396 00:24:14,740 --> 00:24:16,380 S5: available for newborns. 397 00:24:16,820 --> 00:24:17,379 S1: Yes. 398 00:24:17,420 --> 00:24:20,220 S5: And just trying to see what the eligible dates are. 399 00:24:20,300 --> 00:24:21,660 S5: And if there's pros and cons. 400 00:24:22,220 --> 00:24:25,379 S1: Yeah. Great. Uh, you know, it's something that a lot 401 00:24:25,380 --> 00:24:28,790 S1: of folks are, are trying to figure out, and they 402 00:24:28,790 --> 00:24:32,350 S1: have been building out the website, which really is the 403 00:24:32,390 --> 00:24:36,350 S1: go to place, uh, for all the details. And it's 404 00:24:36,350 --> 00:24:38,030 S1: come a long way. And it was it was kind 405 00:24:38,030 --> 00:24:41,109 S1: of a placeholder site. It is, uh, it is more 406 00:24:41,109 --> 00:24:44,189 S1: robust now with all of the details. So if you 407 00:24:44,190 --> 00:24:51,350 S1: just simply go to Trump accounts gov that's Trump accounts.gov. 408 00:24:51,390 --> 00:24:55,030 S1: You can get all of the information uh on how 409 00:24:55,070 --> 00:24:57,630 S1: these are going to work, what you need to do 410 00:24:57,990 --> 00:25:00,310 S1: to essentially get it set up. But I'll just kind 411 00:25:00,310 --> 00:25:03,070 S1: of run over a few of the details for you here. 412 00:25:03,070 --> 00:25:06,669 S1: So in terms of eligibility, this is for children who 413 00:25:06,710 --> 00:25:11,790 S1: are US citizens with a valid social security number born 414 00:25:11,790 --> 00:25:19,550 S1: between January 1st, 2025 and December 31st, 2028. And so, 415 00:25:19,550 --> 00:25:23,230 S1: to establish the account, the parent or legal guardian can 416 00:25:23,230 --> 00:25:26,280 S1: open it on behalf of the child's typically done by 417 00:25:26,480 --> 00:25:33,040 S1: filing a specific form. 45. 47. You might understand why. 418 00:25:33,359 --> 00:25:38,080 S1: 45 and 47 in terms of Trump being the president. Uh, 419 00:25:38,640 --> 00:25:41,240 S1: and that's the name of the form or the number, 420 00:25:41,440 --> 00:25:45,600 S1: and that you will take the Trump account election. You'll 421 00:25:45,600 --> 00:25:49,240 S1: do that with your tax return. Uh, you know, when 422 00:25:49,240 --> 00:25:53,600 S1: you file and then essentially that creates the account if 423 00:25:53,600 --> 00:25:57,600 S1: the child is born during that period, January 1st, 2025 424 00:25:57,600 --> 00:26:02,200 S1: and and December 31st, 2028, then the federal government will 425 00:26:02,200 --> 00:26:07,040 S1: deposit a one time amount of $1,000 into the child's 426 00:26:07,040 --> 00:26:12,679 S1: Trump account. Now that $1,000 doesn't count toward their regular 427 00:26:12,680 --> 00:26:16,920 S1: contribution limit, so family members and parents and others can 428 00:26:16,920 --> 00:26:24,929 S1: contribute up to $5,000 per year. Employers can do $2,500 429 00:26:24,930 --> 00:26:28,210 S1: a year for an employee's child, and this can be 430 00:26:28,210 --> 00:26:34,450 S1: pre-tax through a cafeteria plan or similar. The contributions are 431 00:26:34,490 --> 00:26:37,850 S1: after tax. They're not deductible. So it's not like an IRA, 432 00:26:38,369 --> 00:26:42,369 S1: but the investment growth is tax deferred until you take 433 00:26:42,369 --> 00:26:45,450 S1: it out. And so, you know this is a great option. 434 00:26:45,450 --> 00:26:50,690 S1: Now if the child was born before January 1st, 2025, 435 00:26:50,930 --> 00:26:54,850 S1: they can still have a Trump account created for them. 436 00:26:54,850 --> 00:26:59,370 S1: They just won't get that $1,000 federal seed contribution. But 437 00:26:59,369 --> 00:27:03,130 S1: you may have heard that in some recent philanthropic efforts, 438 00:27:03,170 --> 00:27:07,970 S1: notably from the Dell Dell Foundation, Michael Dell and then 439 00:27:07,970 --> 00:27:10,530 S1: Ray Dalio jumped on board. They're hoping a lot of 440 00:27:10,530 --> 00:27:15,669 S1: others will. Children born before this January 1st, 2020 5th 441 00:27:15,670 --> 00:27:19,369 S1: May receive some additional seed money, but there's going to 442 00:27:19,369 --> 00:27:24,870 S1: be income related rules there to qualify. Um, but nevertheless, 443 00:27:24,869 --> 00:27:28,990 S1: this is a really great option to, to get kids, uh, 444 00:27:28,990 --> 00:27:32,350 S1: accounts where they've got funds in there and they're invested 445 00:27:32,350 --> 00:27:36,390 S1: and there's tax benefits and hopefully kind of get them 446 00:27:36,390 --> 00:27:39,670 S1: moving in the right direction with regard to some savings. 447 00:27:39,910 --> 00:27:43,510 S1: That'll be really important for them, you know, in the future. 448 00:27:43,710 --> 00:27:45,869 S1: And they'll be able to use that for a host 449 00:27:45,869 --> 00:27:50,230 S1: of things, uh, you know, including, uh, a first home, 450 00:27:50,230 --> 00:27:54,470 S1: starting a business education, job training, those, those types of things. 451 00:27:54,710 --> 00:27:56,110 S1: Is that helpful, though, Gaynor? 452 00:27:57,150 --> 00:27:58,389 S5: Yes, sir. Very much so. 453 00:27:58,950 --> 00:28:00,070 S6: All right. Thank you. But again. 454 00:28:00,109 --> 00:28:04,150 S1: That you're welcome. That website again is uh Trump accounts.gov. 455 00:28:04,190 --> 00:28:07,590 S1: You can also sign up for an email alert because 456 00:28:07,590 --> 00:28:09,830 S1: there's a lot of new information coming out. And that 457 00:28:09,830 --> 00:28:12,350 S1: will ensure that you are always up to date on 458 00:28:12,350 --> 00:28:14,869 S1: everything you need to know with regard to these accounts. 459 00:28:14,869 --> 00:28:16,590 S1: Thanks for asking about it. We're going to be talking 460 00:28:16,590 --> 00:28:19,629 S1: about it quite a bit more throughout the year. Uh, 461 00:28:19,630 --> 00:28:21,389 S1: let's go to Nashville, Michael. Go ahead. 462 00:28:23,400 --> 00:28:25,280 S7: Yes, sir. Thanks for taking my call. 463 00:28:25,680 --> 00:28:26,280 S1: Of course. 464 00:28:28,240 --> 00:28:28,680 S7: Hello? 465 00:28:29,080 --> 00:28:33,800 S1: Yes, sir. How can I help? Michael, are you there? 466 00:28:34,720 --> 00:28:35,639 S7: There I am. 467 00:28:36,520 --> 00:28:39,920 S1: Great. I'm doing good. We appreciate your call. How can 468 00:28:39,920 --> 00:28:40,520 S1: I serve you? 469 00:28:41,840 --> 00:28:46,560 S7: Well, um, I have a question. I just turned 65 470 00:28:46,600 --> 00:28:51,160 S7: last month. Um, and I started to feel. And. But 471 00:28:51,160 --> 00:28:54,000 S7: I'm still employed. And I started to fill out the 472 00:28:54,000 --> 00:28:59,040 S7: Medicare form, and then somebody told me that I didn't need. 473 00:28:59,760 --> 00:29:01,960 S7: Because I still have health care. I don't need to 474 00:29:02,000 --> 00:29:07,240 S7: fill out part B, so I hadn't completed the the form. 475 00:29:07,640 --> 00:29:10,120 S7: So I but I got to that point and didn't 476 00:29:10,320 --> 00:29:14,200 S7: and didn't fill it out. Yeah. But then uh, recently 477 00:29:14,200 --> 00:29:16,400 S7: somebody told me that I because I'm still employed, I 478 00:29:16,400 --> 00:29:19,360 S7: don't even need to fill out part A. And of 479 00:29:19,400 --> 00:29:21,970 S7: course I, I wanted to double check because I don't 480 00:29:21,970 --> 00:29:23,330 S7: want to be penalized. 481 00:29:23,370 --> 00:29:27,810 S1: Yeah, yeah. So here's the key question. Michael, uh, do 482 00:29:27,810 --> 00:29:31,170 S1: you have an employer plan from a company with 20 483 00:29:31,170 --> 00:29:32,330 S1: or more employees? 484 00:29:33,370 --> 00:29:34,010 S7: Yes. 485 00:29:34,330 --> 00:29:37,130 S1: Okay, great. So if you do, then you want to 486 00:29:37,130 --> 00:29:40,210 S1: go ahead and sign up for part A the hospital 487 00:29:40,210 --> 00:29:44,210 S1: insurance now, and it's going to be free. And what 488 00:29:44,210 --> 00:29:47,730 S1: you want to delay is part B and part D, 489 00:29:47,770 --> 00:29:50,850 S1: which is the doctor and medical and the prescription drug 490 00:29:51,330 --> 00:29:56,450 S1: because there's no penalty as long as you have employer 491 00:29:56,450 --> 00:30:01,290 S1: coverage with 20 or more employees. And that's continuing. Okay. 492 00:30:01,490 --> 00:30:05,330 S1: Now when you retire or lose coverage, then you'll get 493 00:30:05,330 --> 00:30:09,690 S1: a special eight month enrollment period to sign up for 494 00:30:09,690 --> 00:30:15,170 S1: part B, okay. And you get 63 days from that 495 00:30:15,170 --> 00:30:18,850 S1: period where you retire or lose coverage to enroll in 496 00:30:18,850 --> 00:30:22,940 S1: part D with no penalties. But the simple rule of 497 00:30:22,940 --> 00:30:26,459 S1: thumb is if you're working and you've got a large employer, 498 00:30:26,460 --> 00:30:30,540 S1: plan 20 or more, take part A, delay B and D, 499 00:30:31,300 --> 00:30:33,660 S1: and then you can get those down the road. Okay. 500 00:30:34,620 --> 00:30:35,940 S7: Okay, great. 501 00:30:35,980 --> 00:30:38,380 S1: All right. Thanks for your call. We appreciate you being 502 00:30:38,380 --> 00:30:41,140 S1: on the program, sir. Lord bless you. Well, folks, I've 503 00:30:41,140 --> 00:30:43,420 S1: still got a lot more to come, including Bob Dole. 504 00:30:43,460 --> 00:30:47,860 S1: He'll weigh in with a few of his ten predictions 505 00:30:47,860 --> 00:30:51,540 S1: for 2026. As it relates to the markets and the economy. 506 00:30:51,540 --> 00:30:54,940 S1: Where is this market headed? We'll find out straight ahead. 507 00:30:54,980 --> 00:31:08,380 S1: This is faith and finance live. Don't go anywhere. Great 508 00:31:08,380 --> 00:31:10,540 S1: to have you with us today on Faith and finance live. 509 00:31:10,540 --> 00:31:13,020 S1: I'm Rob West. Well, as we head into a new year, 510 00:31:13,020 --> 00:31:16,140 S1: we're thinking about our budgets and our spending plan. We're 511 00:31:16,140 --> 00:31:19,150 S1: also thinking about this stock market, is there any way 512 00:31:19,150 --> 00:31:22,110 S1: it can continue to grow at the the rate we've 513 00:31:22,110 --> 00:31:25,350 S1: seen the last several years? Well, we'll find out. Bob 514 00:31:25,350 --> 00:31:28,870 S1: Dole is here. He's out with his ten annual predictions. 515 00:31:29,070 --> 00:31:32,230 S1: It's something that's been going on on Wall Street for 516 00:31:32,230 --> 00:31:34,670 S1: a long time. A lot of people count on Bob, 517 00:31:34,670 --> 00:31:37,630 S1: and he's got a great track record. Bob. Give us 518 00:31:37,630 --> 00:31:40,310 S1: a preview of just what you're thinking for this year 519 00:31:40,310 --> 00:31:42,230 S1: before we get into some of the specifics. 520 00:31:42,950 --> 00:31:46,190 S8: Sure. We think this is going to be a continuation 521 00:31:46,190 --> 00:31:51,790 S8: of where we've been meaning mostly up at least a start. Um, 522 00:31:51,790 --> 00:31:54,630 S8: but there's high risk out there. The phrase we're using, Rob, 523 00:31:54,630 --> 00:31:57,870 S8: as you know, is high risk bull market. As long 524 00:31:57,870 --> 00:32:03,030 S8: as earnings estimates are good and rising moderately, which they 525 00:32:03,030 --> 00:32:07,230 S8: have been, and the fed is not antagonistic toward the 526 00:32:07,230 --> 00:32:11,670 S8: stock market, i.e. raising rates, stocks will drift higher. And 527 00:32:11,670 --> 00:32:14,510 S8: that's exactly what we saw today and much of last year. 528 00:32:14,510 --> 00:32:17,840 S8: So uh, a lot of risk out there given high valuations, 529 00:32:17,840 --> 00:32:19,880 S8: but the fundamentals are pretty good. 530 00:32:20,240 --> 00:32:24,760 S1: Yeah. Uh, Bob, today's market action. Anything specific driving it? 531 00:32:24,760 --> 00:32:27,760 S1: I know a lot going on in the energy markets. Uh, 532 00:32:27,760 --> 00:32:30,760 S1: on the heels of this, uh, action in Venezuela. 533 00:32:31,240 --> 00:32:35,400 S8: Yeah, energy and defense stocks were the leaders today. Um, 534 00:32:35,400 --> 00:32:38,760 S8: and the geopolitics had something to do with that. Um, 535 00:32:38,840 --> 00:32:42,120 S8: maybe this will be an opportunity to, uh, for the 536 00:32:42,160 --> 00:32:45,840 S8: US oil service companies and the energy companies to do 537 00:32:46,040 --> 00:32:49,240 S8: more work in Venezuela. There's a lot of oil there, 538 00:32:49,240 --> 00:32:51,680 S8: as you know. Um, but the technology to get out 539 00:32:51,720 --> 00:32:54,320 S8: of the ground has been failing, and maybe this will 540 00:32:54,320 --> 00:32:56,960 S8: create an opportunity. And of course, given this is a 541 00:32:56,960 --> 00:32:59,920 S8: geopolitical event, the defense stocks got a little boost today. 542 00:32:59,920 --> 00:33:02,280 S8: So that was a lot of the story. Value stocks 543 00:33:02,280 --> 00:33:02,920 S8: did well. 544 00:33:03,520 --> 00:33:07,080 S1: Yeah. Interesting Bob as we talk specifically about this year 545 00:33:07,120 --> 00:33:09,240 S1: you know a lot of it comes down to uh, 546 00:33:09,280 --> 00:33:11,960 S1: is the economy going to continue to expand what will 547 00:33:11,960 --> 00:33:16,410 S1: happen with earnings. And then what about prices. What about inflation? 548 00:33:16,410 --> 00:33:19,570 S1: Let's start with the US GDP and what you're expecting there. 549 00:33:20,090 --> 00:33:23,450 S8: Yeah we're expecting growth to be stronger this year than 550 00:33:23,450 --> 00:33:27,450 S8: it was in 2025. Call it by half a percent. 551 00:33:27,450 --> 00:33:30,090 S8: So call it two and a half plus versus two 552 00:33:30,130 --> 00:33:33,210 S8: plus last year. And a lot of the reason for that, 553 00:33:33,210 --> 00:33:36,170 S8: as you know, is the one big beautiful bill. Don't 554 00:33:36,170 --> 00:33:40,290 S8: forget it's an election year. Midterm election years are among 555 00:33:40,290 --> 00:33:44,130 S8: the best GDP years because the party in power spends 556 00:33:44,170 --> 00:33:47,170 S8: a little money to get the economy going. And the 557 00:33:47,170 --> 00:33:49,690 S8: one big beautiful bill will do that, creating incentives for 558 00:33:49,690 --> 00:33:52,570 S8: both businesses and for individuals. 559 00:33:53,290 --> 00:33:56,650 S1: Obviously, corporations have continued just to knock it out of 560 00:33:56,650 --> 00:33:59,290 S1: the park. Last year was a banner year. What are 561 00:33:59,290 --> 00:34:02,170 S1: you thinking about corporate earnings for 26? 562 00:34:02,770 --> 00:34:05,170 S8: We think they'll be good again. Rob, the question is 563 00:34:05,210 --> 00:34:09,690 S8: will they be as good as the consensus expects? That 564 00:34:09,690 --> 00:34:12,529 S8: fine line we think is one to pay a lot 565 00:34:12,530 --> 00:34:16,859 S8: of attention to. consensus, expecting long term growth this year 566 00:34:16,860 --> 00:34:20,899 S8: to be up 14%. I remind everybody that's against the 567 00:34:20,940 --> 00:34:24,660 S8: long term growth rate of 7%. So another year of 568 00:34:24,700 --> 00:34:28,940 S8: quite kind of twice the normal. We're questioning whether profit 569 00:34:28,940 --> 00:34:32,780 S8: margins can rise enough to meet those lofty expectations. 570 00:34:33,060 --> 00:34:36,100 S1: Yeah I know you're one expecting one of those standout 571 00:34:36,140 --> 00:34:39,739 S1: sectors to continue this year to be in tech. Is 572 00:34:39,739 --> 00:34:42,419 S1: that largely driven by AI and have we gotten ahead 573 00:34:42,420 --> 00:34:43,340 S1: of ourselves there? 574 00:34:43,980 --> 00:34:46,420 S8: AI has a lot to do with it. A capital 575 00:34:46,420 --> 00:34:49,739 S8: spending for AI. I mean, one of our predictions, as 576 00:34:49,739 --> 00:34:52,380 S8: you see looking forward, is there's going to be a 577 00:34:52,380 --> 00:34:55,859 S8: lot of volatility because of AI as we saw in 578 00:34:55,860 --> 00:34:58,420 S8: the back part of last year. But there are a 579 00:34:58,420 --> 00:35:02,100 S8: lot of technology companies that are cranking out the business 580 00:35:02,100 --> 00:35:06,900 S8: and the fundamentals. The US remains the undisputed global leader 581 00:35:06,900 --> 00:35:10,020 S8: in technology, and that will continue to accrue to the 582 00:35:10,020 --> 00:35:13,469 S8: benefits of those those companies that we want investors to 583 00:35:13,510 --> 00:35:14,350 S8: pay attention to. 584 00:35:14,750 --> 00:35:17,310 S1: Bob, what about prices? A lot of folks just, you know, 585 00:35:17,350 --> 00:35:21,350 S1: really concerned at what's happening in so many areas of 586 00:35:21,350 --> 00:35:24,630 S1: this economy, just trying to make ends meet with housing 587 00:35:24,670 --> 00:35:28,710 S1: and prescription drugs and food and not to mention the 588 00:35:28,710 --> 00:35:31,150 S1: service industries. Where do you think that heads this year? 589 00:35:31,910 --> 00:35:36,310 S8: So you brought up two subjects inflation and affordability. Or 590 00:35:36,469 --> 00:35:39,590 S8: can I say it this way inflation and the price level. 591 00:35:39,830 --> 00:35:42,950 S8: It is true inflation has been slowing, although we think 592 00:35:42,989 --> 00:35:48,670 S8: it remains stubbornly more close to three than 2% in 2026, 593 00:35:48,670 --> 00:35:51,550 S8: which will frustrate the fed. But the problem for a 594 00:35:51,590 --> 00:35:53,950 S8: lot of people is, yeah, whether it's 2 or 3, 595 00:35:54,350 --> 00:35:57,150 S8: that's not my problem. My problem is it's up 20 596 00:35:57,190 --> 00:36:00,190 S8: over the last five years. Whatever good. They're talking about 597 00:36:00,230 --> 00:36:04,830 S8: the affordability issue, which will become a political football in 598 00:36:04,870 --> 00:36:10,469 S8: the upcoming midterm elections. Hard for, uh, prices uh, generally 599 00:36:10,469 --> 00:36:13,000 S8: to come down. We just have to hope and pray 600 00:36:13,000 --> 00:36:14,360 S8: they go up at a slower pace. 601 00:36:14,800 --> 00:36:16,880 S1: All right, Bob. Well, listen, I know we're going to 602 00:36:16,880 --> 00:36:19,560 S1: take a deeper dive into this later this month, but 603 00:36:19,600 --> 00:36:22,160 S1: this gives us at least a feel for where we're 604 00:36:22,160 --> 00:36:24,799 S1: headed this year. And I guess, uh, just like in 605 00:36:24,800 --> 00:36:27,080 S1: previous years, a lot of it's going to come down 606 00:36:27,080 --> 00:36:28,800 S1: to the fed. Isn't that right? 607 00:36:29,320 --> 00:36:32,399 S8: It sure is. Uh, back to where we started this, uh, 608 00:36:32,400 --> 00:36:36,560 S8: short conversation. If the fed is not antagonistic, that is, 609 00:36:36,560 --> 00:36:40,520 S8: if they're neutral to lowering rates and earnings estimates move up, 610 00:36:40,520 --> 00:36:42,320 S8: the stock market will give a green light. 611 00:36:42,680 --> 00:36:44,640 S1: Very good. Bob, we'll talk to you real soon. Thanks 612 00:36:44,640 --> 00:36:45,200 S1: my friend. 613 00:36:45,600 --> 00:36:46,560 S8: All the best. Bye bye. 614 00:36:46,840 --> 00:36:49,319 S1: All right. That's Bob Dahl. He's CEO and CIO at 615 00:36:49,320 --> 00:36:52,920 S1: Crossmark Global Investments. Later this month, Bob will do a 616 00:36:52,920 --> 00:36:56,640 S1: deep dive into all ten predictions. And he's got a 617 00:36:56,680 --> 00:36:59,359 S1: pretty good track record. So a lot of people take 618 00:36:59,360 --> 00:37:02,280 S1: note of where Bob thinks the market and the economy 619 00:37:02,400 --> 00:37:06,440 S1: is headed. One of those predictions is around international versus 620 00:37:06,440 --> 00:37:12,330 S1: domestic stocks. International Outperformed last year. He thinks that will 621 00:37:12,330 --> 00:37:16,089 S1: continue this year. That and much more will cover in 622 00:37:16,090 --> 00:37:18,450 S1: our deeper dive with Bob Dole later this month. If 623 00:37:18,450 --> 00:37:20,689 S1: you want to learn more about Bob and go ahead 624 00:37:20,690 --> 00:37:24,250 S1: and download all ten predictions, just head over to Crossmark global. Com. 625 00:37:24,410 --> 00:37:27,210 S1: All right. Let's head to Georgia. Terry, how can I help? 626 00:37:28,610 --> 00:37:31,009 S9: Hey, Rob, thanks for taking my call I appreciate it. 627 00:37:31,050 --> 00:37:32,330 S9: Appreciate the show. Of course. 628 00:37:32,489 --> 00:37:33,810 S1: Thank you. Appreciate you. 629 00:37:33,890 --> 00:37:39,209 S9: Um, my daughter has, uh. She's a teacher. She's got 630 00:37:39,210 --> 00:37:42,209 S9: a pension. Um, she's still got a number of years 631 00:37:42,210 --> 00:37:45,690 S9: to work, but we were looking at some investments for her, 632 00:37:45,730 --> 00:37:50,089 S9: for her future retirement. She has about 25 K in 633 00:37:50,090 --> 00:37:55,050 S9: a high yield savings. Um, what? As far as, um, 634 00:37:55,170 --> 00:37:58,850 S9: I was looking at maybe opening her a Roth IRA 635 00:37:58,890 --> 00:38:02,490 S9: through Schwab or Fidelity or something of that nature. Would 636 00:38:02,489 --> 00:38:05,330 S9: that be the best route since she has, you know, 637 00:38:05,370 --> 00:38:08,330 S9: quite a number of years to work or is there 638 00:38:08,469 --> 00:38:12,189 S9: other investments that would, you know, potentially? Uh, I want 639 00:38:12,230 --> 00:38:14,549 S9: to be able to mitigate the risk, but yet I 640 00:38:14,550 --> 00:38:16,509 S9: still want her to be able to gain a pretty 641 00:38:16,510 --> 00:38:17,430 S9: good return. 642 00:38:17,910 --> 00:38:21,190 S1: Yeah, yeah. No. That's great. Uh, you know, I think, uh, 643 00:38:21,190 --> 00:38:24,550 S1: first of all, that savings account is doing an important job, 644 00:38:24,550 --> 00:38:27,029 S1: and you want to keep 3 to 6 months of 645 00:38:27,030 --> 00:38:31,870 S1: expenses in that high yield savings for emergencies. Uh, you know, 646 00:38:31,910 --> 00:38:34,710 S1: so maybe that's 15 or 20,000. Perhaps she's got a 647 00:38:34,710 --> 00:38:37,790 S1: little bit more than she needs in that. And the 648 00:38:37,790 --> 00:38:41,950 S1: extra beyond what we'll call emergency savings, could be ideal 649 00:38:42,070 --> 00:38:46,070 S1: for that Roth IRA contribution each year where she's investing 650 00:38:46,270 --> 00:38:49,469 S1: for the long term. So maybe she keeps 15 to 651 00:38:49,469 --> 00:38:53,950 S1: 18,000 in savings, move 7000 per year into the Roth, 652 00:38:54,150 --> 00:38:58,430 S1: and then repeat that annually until you know the excess 653 00:38:58,430 --> 00:39:04,509 S1: cash is invested, or with additional contributions out of future savings. 654 00:39:04,710 --> 00:39:07,640 S1: You know, it makes sense to have that even alongside 655 00:39:07,640 --> 00:39:10,560 S1: the pension, that teacher's pension is going to be a 656 00:39:10,560 --> 00:39:12,719 S1: key part of her retirement because that'll provide her some 657 00:39:12,719 --> 00:39:17,840 S1: guaranteed income. But they're usually taxable and may not keep 658 00:39:17,840 --> 00:39:20,520 S1: up with inflation. And the beautiful part about the Roth 659 00:39:20,520 --> 00:39:24,000 S1: IRA alongside it is that Roth is going to grow 660 00:39:24,000 --> 00:39:27,600 S1: tax free. It's going to give her flexibility. There's never 661 00:39:27,600 --> 00:39:30,560 S1: going to be any required minimum distributions. If she doesn't 662 00:39:30,560 --> 00:39:33,080 S1: need it, she can let it grow. And it's a 663 00:39:33,080 --> 00:39:37,640 S1: hedge against higher future tax rates under a different administration, 664 00:39:37,640 --> 00:39:40,359 S1: well down the road where she would be able to 665 00:39:40,400 --> 00:39:45,279 S1: tap into these funds without paying any tax because it's 666 00:39:45,280 --> 00:39:48,879 S1: completely tax free growth. So the combination of the pension 667 00:39:49,080 --> 00:39:54,080 S1: plus the the Roth is a really strong combination. Now 668 00:39:54,239 --> 00:39:56,760 S1: in terms of what to invest in inside that Roth, 669 00:39:56,760 --> 00:39:59,000 S1: let's say you were to go with your suggestion on fidelity, 670 00:39:59,000 --> 00:40:01,359 S1: and I don't have any issue there. I'd probably just 671 00:40:01,360 --> 00:40:05,850 S1: use a broad US stock index, maybe an An international 672 00:40:05,850 --> 00:40:09,250 S1: fund index. Um, you know, she's got a long time 673 00:40:09,250 --> 00:40:11,969 S1: horizon of 3 to 4 decades here, so she can 674 00:40:11,969 --> 00:40:16,169 S1: be growth oriented and one low cost option that would 675 00:40:16,170 --> 00:40:20,890 S1: give her kind of this broad market, uh, coverage, uh, 676 00:40:20,890 --> 00:40:25,370 S1: would be through the Schwab Intelligent Portfolios. It's basically, uh, 677 00:40:25,370 --> 00:40:29,250 S1: like fidelity. Schwab is one of the other discount brokerages, 678 00:40:29,570 --> 00:40:31,930 S1: and they have a robo advisor that they call the 679 00:40:31,930 --> 00:40:36,930 S1: Schwab Intelligent Portfolios. They're low cost. Uh, you answer some questions, 680 00:40:36,930 --> 00:40:40,410 S1: it would automatically, uh, you know, build the, uh, the 681 00:40:40,450 --> 00:40:44,170 S1: portfolio for her. And then every time she makes a contribution, 682 00:40:44,290 --> 00:40:46,690 S1: you know, let's say she wants to put in, you know, 683 00:40:46,730 --> 00:40:50,890 S1: 1/12 of 7000 a year. So, you know, about $585 684 00:40:50,930 --> 00:40:54,450 S1: a month, um, it would automatically reinvest it and there 685 00:40:54,450 --> 00:40:57,770 S1: wouldn't be any expenses related to that. So, you know, 686 00:40:57,810 --> 00:40:59,450 S1: that could be a great option for her. But I 687 00:40:59,450 --> 00:41:02,210 S1: think the bottom line is I like the direction you're headed. 688 00:41:03,290 --> 00:41:06,660 S9: Right. Uh, you got time for one more quick question? 689 00:41:06,700 --> 00:41:07,820 S1: Uh. Real quick. Yeah. 690 00:41:08,980 --> 00:41:13,700 S9: Um, as far as I'm 63, um, what is the 691 00:41:13,700 --> 00:41:16,620 S9: limit that I can put in my Roth? Uh, is 692 00:41:16,620 --> 00:41:19,100 S9: there a cap on it since I am 63? 693 00:41:20,020 --> 00:41:22,540 S1: Yeah. And so you're still working, correct? 694 00:41:23,020 --> 00:41:23,940 S9: Yes, sir. 695 00:41:24,580 --> 00:41:28,460 S1: Okay. Yeah. And so if you are 63 years old, 696 00:41:28,460 --> 00:41:33,660 S1: you can put in the extra $1,000. Uh, so put in, uh, 697 00:41:33,660 --> 00:41:35,380 S1: up to $8,000. 698 00:41:37,060 --> 00:41:40,620 S9: Right. Okay. Up to 8000. And it doesn't just end 699 00:41:40,660 --> 00:41:43,380 S9: at 63. I can do that annually. Correct? 700 00:41:43,700 --> 00:41:47,340 S1: Yeah. So long as you have earned income, which means 701 00:41:47,340 --> 00:41:50,740 S1: income from self-employment or wages or something like that. There's 702 00:41:50,739 --> 00:41:53,980 S1: no age limit, uh, for for what you can put 703 00:41:53,980 --> 00:41:56,739 S1: in there. So, uh, or for the number of years 704 00:41:56,739 --> 00:41:58,700 S1: you can contribute, as long as you have earned income, 705 00:41:58,700 --> 00:42:02,940 S1: you can contribute, uh, you know, into your 80s and 90s. Uh, 706 00:42:02,989 --> 00:42:06,029 S1: so that's not an issue. And you could put in 707 00:42:06,070 --> 00:42:09,630 S1: if you haven't filed your 2025 return, which you wouldn't 708 00:42:09,630 --> 00:42:12,510 S1: have on the 5th of January, then you can still 709 00:42:12,510 --> 00:42:16,870 S1: contribute for 2025, uh, in the Roth, which would give 710 00:42:16,870 --> 00:42:20,029 S1: you the ability to do another 8000 for 2026. 711 00:42:21,070 --> 00:42:24,070 S9: Okay. Well, I appreciate your time. Thank you for taking 712 00:42:24,070 --> 00:42:24,710 S9: my call. 713 00:42:25,150 --> 00:42:27,470 S1: All right. Lord bless you. We appreciate your call today 714 00:42:27,469 --> 00:42:30,509 S1: as well. Terry, call any time. Well, folks, that's going 715 00:42:30,510 --> 00:42:32,270 S1: to do it for us. So glad to be along 716 00:42:32,270 --> 00:42:34,790 S1: with you today. Back in a new year, back in 717 00:42:34,790 --> 00:42:37,910 S1: the studio. Can't wait to, uh, continue to serve you 718 00:42:37,910 --> 00:42:39,830 S1: this year. We have a lot in store, a lot 719 00:42:39,830 --> 00:42:42,589 S1: of really exciting things coming here at Faith fi to 720 00:42:42,630 --> 00:42:45,150 S1: help you live as a wise and faithful steward. Listen, 721 00:42:45,150 --> 00:42:50,190 S1: I couldn't do this without my amazing team today. Tara, Taylor, Lisa, Dan, 722 00:42:50,190 --> 00:42:52,750 S1: and everybody here at Faith fi. Enjoy the rest of 723 00:42:52,750 --> 00:42:55,510 S1: your day. Faith and Finance Lives a partnership between Moody 724 00:42:55,510 --> 00:42:57,510 S1: Radio and Faith fi. We'll see you tomorrow.