S1: The following programme was pre-recorded so our phone lines are
S1: not open.
S2: In today's world of cryptocurrency, sports betting apps and volatile markets,
S2: it's common to hear people suggest that investing is just
S2: another form of gambling. Hi, I'm Rob West. While investing
S2: in gambling, both involve putting money at risk. They're not
S2: the same. Not financially, not morally, and certainly not biblically.
S2: That's up first today. And then we'll have some great
S2: calls that we've lined up. But since this program is
S2: not live today, please hold your calls until we're back
S2: in the studio. This is faith in finance. Live. Biblical
S2: wisdom for your financial journey. At a surface level, investing
S2: in gambling both involve uncertain outcomes, but the nature and
S2: purpose of the risk involved couldn't be more different. Investing
S2: involves taking thoughtful, calculated risks to support growth, contribute to
S2: the economy and provide for the future. Farmers plant seeds
S2: without knowing exactly what the harvest will bring. Business owners
S2: launch ventures and faith. Ecclesiastes 11 one encourages this kind
S2: of forward looking activity. Cast your bread upon the waters,
S2: for you will find it after many days. Investing is similar.
S2: It's about patience, planning, and trusting God while using resources wisely.
S2: It's not a shortcut to wealth, but a long term
S2: effort to steward God's provision well. Gambling, however, is a
S2: zero sum game. In order for one person to win,
S2: others must lose, and the losses are often devastating. Gambling
S2: exploits rather than builds, often targeting the financially vulnerable and
S2: preying on their desperation. Scripture calls us to seek justice
S2: and protect the vulnerable. Learn to do right. Seek justice.
S2: Defend the oppressed. That's Isaiah 117. The gambling industry profits
S2: by doing the opposite. As Proverbs ten two puts it,
S2: ill gotten gains do not profit anyone, but righteousness rescues
S2: from death. One of the clearest differences between investing and
S2: gambling is the impact each has on the world around us.
S2: Wise investing is not only beneficial to the investor, it
S2: benefits others too. When you invest in a company, you're
S2: helping to fund its operations, fuel innovation, and provide jobs.
S2: Investing helps businesses grow, communities flourish, and economies strengthen. It's
S2: one way we can participate in the broader work of
S2: human flourishing. Faithful investing can be an expression of loving
S2: your neighbor. It involves allocating resources to support businesses that
S2: provide real goods and services, and it has a ripple
S2: effect far beyond your personal return. Like the faithful servants
S2: in Jesus parable of the talents, investors aim to multiply
S2: what's been entrusted to them for the good of others
S2: and the glory of God. Gambling, however, often thrives at
S2: the cost of others losses. The system is built on imbalance.
S2: One person's gain depends on many others losses. It preys
S2: disproportionately on the vulnerable, offering false hope while encouraging addiction, debt,
S2: and despair. Isaiah 117 commands learn to do right. Seek justice.
S2: Defend the oppressed. Gambling systems do the opposite, profiting off
S2: injustice and deepening cycles of poverty. Gambling is often fueled
S2: by discontentment, a restless craving for more. A belief that
S2: life will finally be better if we just get lucky.
S2: It lures us to risk what we have for what
S2: we think we need. But the Bible warns us, keep
S2: your lives free from the love of money, and be
S2: content with what you have, because God has said, never
S2: will I leave you. Never will I forsake you. Yet
S2: discontentment isn't limited to gamblers. It can poison our investing too.
S2: Even legitimate investment decisions can be corrupted by greed, fear,
S2: or the desire to keep up with others. We can
S2: hoard in the name of saving or obsess over returns
S2: as if our security depends on them. That's why Christians
S2: must always ask, why am I investing? Am I trusting
S2: in God or in my portfolio? This isn't just about money.
S2: It's about discipleship. Jesus taught that we cannot serve both
S2: God and money in Matthew 624. Gambling often turns money
S2: into a God, feeding our anxiety and covetousness rather than
S2: cultivating peace and gratitude. When done in faith, investing is
S2: an act of trust in God's provision. It acknowledges that
S2: we live in a broken world full of uncertainty, but
S2: we still move forward wisely, patiently and generously. It says
S2: I will use what God has given me to plan
S2: for the future, care for others, and grow what he's
S2: entrusted to me. When done with the right heart, posture
S2: investing can be a part of seeking God's kingdom. It's
S2: a tool, not a treasure. But gambling tempts us to
S2: seek fortune without faithfulness, to pursue gain without giving, and
S2: to trust luck instead of trusting the Lord. Whether we're investing, saving,
S2: or giving, may we always remember that true security is
S2: not found in earthly returns, but in the eternal riches
S2: of Christ. I hope that's an encouragement to you today.
S2: I'm Rob West and this is Faith and finance live.
S2: We'll be right back.
S3: You're listening to Faith and finance live. This program is prerecorded,
S3: so we're not available to answer your calls, but you
S3: can email us your questions at at Philly.com.
S2: Hey, before we head to the phones, I want to
S2: answer one of your emails. By the way, we receive
S2: these emails all the time at and ask Rob at
S2: Faith Philly.com. Feel free to send your question along to
S2: be read on the air. Again, ask rob@faith.com. That's faith fi.com.
S2: This one comes to us from Christie. She writes hi Rob,
S2: I love listening to your show. I'm in my 20s
S2: and I'm saving up for a house. I'm not sure
S2: about the best way to invest my current savings. Should
S2: I buy a CD or invest in the stock market?
S2: I'd appreciate any advice. Thanks so much. You know, I
S2: think Christie, the key here is your time horizon. So
S2: if you're planning on buying this house, let's say in
S2: less than five years, then I don't want you investing
S2: in the stock market. We really need a five plus
S2: year time horizon. So I love that you're saving. And
S2: I realize it may take some time, but you're likely
S2: going to want to save that in a high yield
S2: savings account. If you have some money already put aside,
S2: you could lock it up in a 15 or 18
S2: month CD and get a little bit more interest. But
S2: you don't want to invest it because the key is
S2: to have that money available when you're ready to make
S2: the purchase. The problem with investing in the stock market
S2: is those stocks may be down. At the time. We
S2: just don't know what would be going on at that moment.
S2: And you may have to sell them at a loss.
S2: By the way, make your savings target 20% for a
S2: down payment at a minimum. And then let's make sure
S2: that mortgage payment, including taxes and insurance, is no more
S2: than 25% of your take home pay. That's going to
S2: ensure that you have enough left for everything else. But
S2: you can do this. Stay at it, save diligently, and
S2: you will be ready to make that purchase in no time.
S2: And again, don't buy too much house even though these
S2: prices are still pretty high. Uh, let's see in the news.
S2: In light of so many scams affecting seniors today. Uh,
S2: one of which continues to be a problem among seniors.
S2: And it's the Medicare marketing misrepresentation. I know it's a
S2: long name. Let me explain. A caller usually claims to
S2: be from Medicare and offers expanded benefits by answering a
S2: few questions and giving consent. However, behind that friendly quote,
S2: Medicare employee is actually an insurance agent looking to make
S2: a sale. Now, this, of course, violates Medicare rules, but
S2: it unfortunately happens more often than it should. A 2022
S2: Senate Finance Committee report revealed that frequent instances of agents
S2: was occurring, and they were changing seniors health plans without
S2: their informed consent. While Medicare is a federal program, brokers
S2: and agents help seniors navigate the complex enrollment process. However,
S2: since they aren't compensated for each person they enroll, some
S2: may be tempted to put profits over the best interests
S2: of seniors, and these brokers are subject to oversight. But
S2: violations do occur and the consequences can be significant. Seniors
S2: often don't realize what's happening until weeks later, when they
S2: find themselves facing higher costs or having to switch doctors
S2: and facilities. So it's important to know that Medicare employees
S2: never make unsolicited calls to seniors about their benefits. Likewise,
S2: brokers and agents are not allowed to make unsolicited calls
S2: or leave flyers at home unless they've requested an appointment.
S2: So if you're unsure about a call, hang up and
S2: reach out to Medicare directly. If you think you or
S2: a loved one has been a victim of misrepresentation, just
S2: contact your state's senior Medicare patrol to report the fraud.
S2: That's a national resource center that provides valuable resources to
S2: help protect you and your loved ones from deceptive practices.
S2: Medicare is, of course, a lifeline for millions of seniors,
S2: but the system can be confusing, so be cautious. Ask questions.
S2: Never give out personal information over the phone to someone
S2: you don't know. You know what? By staying vigilant, you
S2: can protect yourself from fraud and ensure you get the
S2: coverage that's right for you. Listen, this is going to
S2: come in all shapes and sizes. So it could come
S2: by email. It could come by a phone call. It
S2: could be somebody saying they're from the IRS or somebody
S2: that says you won sweepstakes. I mean, it could be any,
S2: you know, type of scam. The key is it always
S2: comes down to don't give information over the computer, over
S2: the phone to people that contact you if they're legitimate.
S2: They shouldn't be asking for that unless you requested the information. Uh,
S2: so hang up. Call someone directly. Uh, find the direct
S2: channel to contact that vendor that they claim they're from.
S2: And don't respond to somebody who's reaching out to you,
S2: no matter what form of communication it is. So hopefully
S2: that's helpful to you today. I know this is increasingly
S2: becoming difficult for folks, especially seniors, who can get confused
S2: about these things, especially when technology is involved. So if
S2: that's you, just be vigilant. And if you have somebody
S2: in your life who needs you to walk alongside them,
S2: just keep them up to date on the latest scams
S2: so they can spot these sooner rather than later. All right,
S2: let's dive into those phone calls. Let's begin in Florida today.
S2: And we'll welcome Joshua to the broadcast. Go ahead.
S4: Yes. Thank you for taking my call. Um, I have
S4: this question because I have a 403 B, uh, in
S4: an organization which is not increasing that much. And I
S4: was mentioned to do a, an annuity. Um, and I
S4: was going to transfer $25,000 to that, but it's going
S4: to be locked for ten years. So, um, I have
S4: concern with that because if I have an emergency, it
S4: will be an issue. But the other thing is there
S4: are some fees. I don't know if they're going to
S4: be charging some fees, monthly fee on that based on the,
S4: on And that, uh, contract. So I don't know if
S4: this will be the right move for me to do that.
S4: Or if there's another way that I can, uh, do it.
S4: Financial stability.
S2: It's a great question, Joshua, and I'm delighted to hear
S2: that you are thinking about the future. Putting something aside
S2: on a systematic basis is the very best way to
S2: build wealth. So you have something alongside Social Security, assuming
S2: you paid into the system FICA taxes long enough to
S2: qualify for Social Security, that's never intended to cover more
S2: than 35 to 40% of your pre-retirement income. So having
S2: something else that you can use to convert to an
S2: income stream throughout the rest of your life, no matter
S2: what God calls you to in that season, is critical,
S2: and you're your most powerful wealth building tool. Is your
S2: income today, so long as you live below your means
S2: and you have a surplus to put aside, and putting
S2: that into a tax deferred environment like a 403 B
S2: is a great option. now in terms of the money
S2: that's already in there. If this is a 403 be
S2: set up by your employer, your church, and you're still employed,
S2: you're not going to be able to move it out
S2: of there. But is that the case? You're still with
S2: the church that's set up the 403 B that you're
S2: participating in, is that right?
S4: No. I'm retired.
S2: Oh you're retired.
S4: Yeah. Just to have that for if anything happened, my
S4: kids can handle my situation with my wife because it
S4: will be my wife at $25,000 and myself $25,000. And
S4: I'm going to have a $15,000 in a savings account
S4: for six months. Secure. So. But I want something to
S4: grow with the $25,000 that I have because it's not growing.
S4: Not much right now. I see.
S2: That. I see. Very good. So are you living on
S2: Social Security alone? Is that enough to cover your bills?
S4: So far, God has been faithful. And yes, I have covered.
S2: Okay. Very good. Yeah. You've got a couple of options here.
S2: I mean, my preference would be because this is in
S2: a 403 B, you don't need to worry about the
S2: tax consequences. You would roll it to an IRA. And
S2: at that point you've got probably got three options in
S2: terms of how to invest it. And this would be
S2: my preference over an annuity because of the reasons you
S2: mentioned less returns, higher costs, less access to the money.
S2: One would be, um, a robo advisor like the Schwab
S2: Intelligent Portfolios. The other would be, um, some of the
S2: faith based investing mutual funds. And a third would be
S2: sound mind investing. Org. Let's do this. I'll unpack each
S2: of those after the break. Stay right there. Just a
S2: quick reminder. We're not here today, so don't call in.
S2: But we're going to head to a break and much
S2: more coming just after this. Stay with us. Great to
S2: have you with us today on faith and finance live.
S2: By the way, we're not live today. We're away from
S2: the studio, so don't call in. But we have some
S2: great questions that we lined up in advance. By the way,
S2: this ministry is entirely listener supported. That means we rely
S2: on your financial gifts and support to do what we
S2: do on the air every day. If you consider a gift,
S2: we'd certainly be grateful. Just head to our website, faith five.
S2: That's Faith 5.com and click the give button. Thanks in advance.
S2: All right, let's head back to the phones now. Before
S2: the break, we were talking to Joshua. He's retired as
S2: a pastor as 25,000. That was in a 403 B.
S2: He doesn't need it. By God's grace, he's been able
S2: to live modestly on Social Security alone. He's wanting to
S2: get it out of the 403 B and perhaps see
S2: it grow a little bit more effectively. Someone had suggested
S2: an annuity. He had some caution around it. I agreed
S2: in that, you know, the downside of an annuity is, uh,
S2: you're adding complexity. There's additional fees, you lose access to
S2: the money, in part because if you want to get
S2: to it, you're going to have surrender penalties beyond a
S2: certain percentage each year. And often you're sacrificing return potential.
S2: The upside is you can transfer the risk to the
S2: insurance company. So some folks say, listen, above all else,
S2: I just want to know that I can have a
S2: guaranteed return, and I'm willing to give up some other
S2: things for that. And that's where an annuity can make
S2: sense in this situation. So what I'd recommend, Joshua, is
S2: that you roll it out to an IRA that's not
S2: a taxable event, but then you have to decide how
S2: it's going to be invested. And I think you've got
S2: a few options there. There's some wonderful mutual fund families
S2: that are faith aligned. So they would exclude companies that
S2: are misaligned with your Christian values. They'd seek out other
S2: companies that not only have a compelling value to shareholders to,
S2: you know, provide risk adjusted returns for the for the
S2: mutual fund, but also they're promoting human flourishing. And it
S2: could be a great option for you. You probably have
S2: heard about Timothy. Plan a wonderful fun family Eventide one
S2: ascent Guidestone so many others that are just doing incredible work.
S2: If you wanted a list of those mutual funds that
S2: you could invest in, if you rolled the 403 B
S2: to an IRA at, let's say, Fidelity or Schwab, they
S2: would all allow you to have access to these fund families.
S2: You could download a list of them at Faith and investing.
S2: That's faith and investing. Uh, the other option is you
S2: could check out our friends at Sound Mind Investing org,
S2: and they could help you make the investment selections. The
S2: third option is you could use what's called a robo advisor.
S2: And I would probably recommend the Schwab Intelligent Portfolios. You'd
S2: open an IRA at Schwab, you'd roll the 403 B
S2: over to it, and then you'd invest it in the
S2: Schwab Intelligent Portfolios. And basically you'd answer a series of
S2: questions about your age and your goals and your risk tolerance.
S2: And then the algorithm would build a very low cost,
S2: but very high quality portfolio that just captures the broad
S2: moves of largely the bond market because you're in a
S2: retirement season, but with some smaller allocation to stocks. But again,
S2: not picking individual stocks, just using the big indexes. So
S2: you'd get the broad moves of the stock and bond market,
S2: but it's very cost effective. Um, so all three of
S2: those I think could be compelling options for you to explore.
S2: Is that helpful though?
S4: Yes it is. It is because we're it's been a
S4: while that we are trying to sign the contract, but
S4: I have a concern with that.
S2: So yeah. Well, this would give you a lot more
S2: flexibility over being able to access the money, invest it
S2: the way you want to and have a lot more
S2: control over the fees as well. And so I think perhaps,
S2: you know, your discernment that this is not the right
S2: direction is something you ought to pay attention to. And listen,
S2: if down the road you decide you want to put
S2: into an annuity, you'd always have that option. But once
S2: you sign this contract, you're going to be kind of
S2: stuck there for the time being. So hey, thanks for
S2: your call today. All the best to you, sir. Uh,
S2: let's see, we started today by talking about scams, particularly
S2: scams that are taking place with regard to Medicare marketing misrepresentation,
S2: where insurance agents are calling and claim to be from
S2: Medicare offering expanded benefits, but ultimately their insurance agents looking
S2: to make a sale. Certainly not all insurance agents by
S2: any means are unscrupulous. Not saying that at all. I'm
S2: just saying this is a more common practice that we're seeing,
S2: and it really is unethical the way it's going down.
S2: But just I think that's a good warning. That's more
S2: general in nature to the rise in scams, especially those
S2: that are connected to the IRS and Medicare as it
S2: relates to seniors. Maggie in Texas, I understand you have
S2: an experience with this. Go right ahead.
S5: Yes. Yes, sir. I am just had a little bit
S5: different version of the sales pitch, I'm pretty sure. And
S5: I kind of felt pressured, and I kind of figured
S5: that's what it was. But, um, just the other day,
S5: I was sitting in McDonald's, um, and I think I
S5: was actually eating something or drinking coffee, I don't know,
S5: early morning. And a lady came. There were other tables around,
S5: nicely dressed, and she asked if she could sit at
S5: my table. And I said, sure, you know. And I thought, oh,
S5: this is another person the Lord is bringing for me
S5: to share that Jesus is coming soon. Yeah, sure. You know,
S5: be ready. Meaning be ready, um, soon. Meaning when it
S5: starts to happen, you better be ready. Um, the Lord
S5: kind of gave me a ministry. And so she sat
S5: there and she. When she saw that I wasn't really
S5: interested in opening the table up for conversation, She pulled
S5: her computer out and I asked her, are you from
S5: from here? And she said, no, she's from was from
S5: Fort Worth. Her card said, but anyway, this she says
S5: under her name and I won't give the name of, uh,
S5: herself or the company, but underneath her name it says
S5: insurance broker. And then at the bottom, in smaller letters,
S5: Medicare plans, comma, cancer and hospital plans, comma annuities, life, health, dental, vision.
S5: And when I when she asked me I said, well
S5: I have a plan. I'm I'm okay with I don't
S5: think I'm going to get anything better. And I told
S5: her the name of the company, you know, and that
S5: it was an advantage plan. And she said, oh, well,
S5: I could get you a better version. And she was
S5: really interested in talking about that, but I felt pressured,
S5: and I have good reason. I have a ton of things.
S5: In fact, I have so many questions. I have enough
S5: to keep your line busy for weeks. But a lot
S5: of it, a lot of it I can do on
S5: my own. I need to do some sorting and list
S5: listing and prioritizing, but I have so much to do.
S5: I feel like I'm drowning sometimes with trying to get
S5: my own, my own. But I felt pressured. And, you know,
S5: I think that I think I think I'm answering my
S5: own question is that if you feel a little bit pressured,
S5: that's probably the Holy Spirit saying.
S2: I think you're exactly right. I hate to cut you off.
S2: I've got to hit a hard break, but we'll be
S2: right back. So glad to have you with us today
S2: on Faith and Finance Live. I'm Rob West. Quick email
S2: before we head back to the phones. This one comes
S2: to us from Emily. By the way, if you have
S2: a question you'd like, read on the air. We'd love
S2: to hear from you. Send it along to ask Rob
S2: at Faith Philly.com. That's ask Rob at Faith. Emily writes,
S2: I'm employed and currently receiving Social Security income. I tithe
S2: on my salary? Should I also tithe on my Social
S2: Security income? I love your program and listen at work. Thanks.
S2: And Emily, thanks for this question. Clearly you're wanting to
S2: be a generous sower. Be faithful in your giving to
S2: the Lord, and I appreciate that. Um, here's my perspective.
S2: First of all, the tithe is a great beginning point
S2: for our giving. It's we're no longer under the Law
S2: of Moses. And yet, uh, we I think we should
S2: give proportionately. We see that in the, in the New
S2: Testament for sure. We should give sacrificially. And so starting
S2: with this idea that we would recognize God's ownership and
S2: give in proportion to our income, the tithe is a
S2: great principle to apply to that. Uh, so you would give,
S2: in the case of a tie, the 10th of your increase.
S2: The question is, is your Social Security increase? Uh, if
S2: you tithe on your gross income throughout your working life,
S2: clearly a portion of what you're getting from Social Security
S2: is a return of what you put into the system.
S2: The challenge is it would take an army of CPAs
S2: to figure out what portion is yours, what portion was
S2: your employer's contribution? Because remember, they paid half of the
S2: FICA tax. And then what portion was the growth that
S2: occurred while it was in there? And so I think
S2: for that reason, I would probably take the perspective that
S2: let's look at anything we receive from the Lord as
S2: a gracious gift from the Lord, no matter what its
S2: source was, whether it's SSI or Social Security or disability
S2: or an inheritance or a paycheck. And just say, Lord,
S2: I'm going to demonstrate my trust in you as my provider,
S2: knowing that your provision is complete. And I want to
S2: be partnered with you in giving in proportion to how
S2: you've prospered me. That would be the approach that I
S2: would take, as opposed to trying to figure out what
S2: portion falls into which bucket. But at the end of
S2: the day, Emily, I realize that the heart behind this
S2: is that you want to honor the Lord. And so
S2: I would just be on your knees if you're married,
S2: you and your husband just asking the Lord, what would
S2: you have me to do? And I think as long
S2: as you follow the leading of the Lord, you give
S2: cheerfully as an act of worship. I don't think the
S2: the percentage or checking a box is really the most
S2: important thing. So hopefully that's helpful to you as you
S2: think and pray through this. All right. Let's head back
S2: to the phones. Let's go back out to Texas. Hi, George.
S2: Go ahead sir.
S6: Hey Rob, how are you doing today?
S2: I'm well, thank you.
S6: I don't know how much information she gave you on me.
S6: Or if you have questions for me or. I do
S6: have some questions for you.
S2: Just give us a quick overview of what's going on
S2: in your life here, George.
S6: Well, I'm a 76 year old. I call it retired.
S6: I actually retired from a job and then on a Friday,
S6: went back to work pretty much full time on the Monday.
S6: So anyway, I've been working on it off since the retirement,
S6: so I'm kind of pretty tired trying to work two
S6: three days a week, sometimes five days, sometimes two, you know,
S6: so it's quite variable. So a couple of questions I
S6: have concerning that. I guess what is the best way
S6: for me to handle Social Security taxes and withholding taxes. Uh,
S6: since I'm basically contract labor now and they don't take
S6: that out of my check every month. So what percent
S6: of each should I set aside? Maybe. Or should I
S6: send in, uh, like a quarterly report to Uncle Sam? Uh.
S2: Yeah, it's a great question. And, uh, you know, typically
S2: you're going to want to set aside, uh, you know,
S2: on average, I think about 25 to 30% of your
S2: income to pay taxes. Uh, it's going to ultimately come
S2: down to your effective tax rate. And that's harder to
S2: determine in the first year because of the change and
S2: so forth. But, um, you know, if it's mainly kind
S2: of side jobs and so forth. Uh, I mean, I
S2: think that 30% number would typically be a good starting point, uh,
S2: which you may want to do is visit with a CPA, um,
S2: just to, you know, kind of run through all of
S2: this and determine your tax bracket, any deductions and credits
S2: for which you'd qualify, you know, based on the work
S2: that you're doing, because, you know, as an independent contractor,
S2: you know, you're going to have that self-employment tax, which,
S2: you know, when you're an employee, you're used to half
S2: of that being covered by your employer. But when you're self-employed,
S2: you owe the full 15.3% self-employment tax on your net
S2: earnings to cover Social Security and Medicare. And then obviously,
S2: you know, the federal and possibly state income tax. And then, yes,
S2: to your point about quarterly payments, you are going to
S2: want to make estimated tax payments, which would be made
S2: quarterly to the IRS and your state agency if that's applicable. Um,
S2: just so you don't get hit with any penalties because
S2: the IRS doesn't want to wait and get it all
S2: at once, you know, at the end of the at
S2: the end of the year when you file your return.
S2: So I would say if you start right up front
S2: with that 30% number, probably on the upper end, 35%,
S2: and then do some tax planning, maybe you go sit
S2: with a CPA who's going to file your taxes, at
S2: least for the first year. Now that you've made so
S2: many changes just to ensure that, number one, you're paying
S2: the right amount. But number two, you're taking full advantage
S2: of every deduction available to you, which obviously there's a
S2: lot more liberty there as a self-employed individual where you
S2: have documented and and reasonable business costs that you can
S2: deduct from your income. But is that helpful?
S6: It sure is. And can I ask something real quick? Again,
S6: kind of dovetailing to that. You know, when I was
S6: working full time and they were taking X number of
S6: dollars out of my check and putting into the 401 K,
S6: which was of course tax deferred, they don't do that anymore.
S6: I guess I want to get back into maybe setting
S6: some more aside into my investment accounts that have to
S6: do that myself now. So yeah.
S2: Exactly right. So you've got a couple of options. The
S2: simplest and quickest would be probably a Roth IRA. Or
S2: if you want the deduction like you had in your
S2: 401 K, you could use a traditional IRA. And if
S2: you're over the age of 50 then you could put
S2: in 8000 for the year 2024. And then as soon
S2: as we roll into 25, you could do another 8000. Now,
S2: if you have the ability to do more than 8000
S2: a year or 16,000 over the next several months, between
S2: 24 and 25, then as a self-employed person, you'd want
S2: to look at something called a Sep IRA, which is
S2: basically just like a traditional IRA, except it's for self-employed individuals.
S2: And that Sep IRA would allow you to put in
S2: far more than the 8000 you could put in up
S2: to 25% of your total compensation, or a max of
S2: 69,000 for the year 2024, whichever is less. So that
S2: would be an option. And you can have a Sep
S2: IRA alongside a traditional IRA. So you know, whereas with
S2: the the Roth and the traditional, you can only put
S2: in 8000 combined between the two of them. Um, but
S2: with a Sep, you could put in the full 8000
S2: into a traditional and then put in another, uh, up
S2: to 69,000 or 25% of your compensation, whichever is less.
S2: And those are very easy to open. I'd probably open
S2: one at Fidelity or Schwab, start making a regular contribution.
S2: And then you could just, you know, invest those in
S2: a high quality, low cost mutual fund of some kind.
S2: Does that make sense?
S6: Sure does. One thing you said 69,000 or what percentage.
S2: Or 25% of your total comp? Uh, whichever is less.
S6: Okay, great. Yeah. Okay. Those are a lot of things
S6: to think about and get in order.
S2: All right.
S6: Okay. Thank you. And y'all have a great day.
S2: Absolutely. George, thank you for your call, sir. Lord bless you. Yeah.
S2: Before we head to our break, you know, as I
S2: read scripture, I see this big idea jumping off the
S2: page around contentment. You know, I think as we consider
S2: our role as stewards of God's money, we need to
S2: foster this attitude that the apostle Paul talked about, and
S2: that is contentment. Remember, he said that it's learned. I've
S2: learned to be content. He was in a time of
S2: plenty and in a time of need, and he learned
S2: to be content in either of those. Contentment is a choice.
S2: And when we increase our contentment, well, then we can
S2: focus on what God has given us and not on
S2: what he's given others. I hope that's an encouragement to
S2: you today. Again, we're not here today. We're away from
S2: the studio, so don't call in. But just around the corner.
S2: We have some more questions to tackle. I know you're
S2: going to enjoy the calls we have coming up. Stay
S2: with us. We'll be right back.
S1: The opinions offered during this program represent the personal or
S1: professional opinions of the participants, given for informational purposes only.
S1: Any information provided is not intended to replace advice from
S1: a financial, medical, legal or other professional who understands your
S1: specific situation.
S2: We're so glad you've joined us for Faith and Finance
S2: Live today here in our final segment, let me remind
S2: you not to call in because we're not live today,
S2: but we'd love for you to stick around and enjoy
S2: the rest of the program. Let's go to Saul in Mississippi.
S2: Go ahead.
S7: Yes. Hi. Um, I'm about $26,000 in credit card debt. Now,
S7: my husband walks out on us, and for a while
S7: he was paying the bills. But then he stopped. Um,
S7: we now have a court order that, you know, makes
S7: it better. But in that meantime, we did rack up
S7: some debt. Um, I'm almost to the limit on the cards. Yeah.
S7: And my credit score used to be, like, 780, but
S7: now it's quite a bit lower. Um, and we need. Well,
S7: we're going to need, um, I mean, like, we're doing
S7: fine without any major expenses, but now with having to
S7: pay extra lawyer fees, and, you know, we're looking at
S7: getting the roof on the house replaced in the next
S7: year or so. Yeah. Um, I'm wondering what the best
S7: option is for, you know, do we take a home
S7: equity line on our house or, um, what do we do?
S2: Yeah, boy. So I'm so sorry. I know this is
S2: a lot, and it's weighing on you, and there's just
S2: so many things going on here. And certainly the financial
S2: piece of this is adding additional pressure and stress. And
S2: so we need to ask the Lord to intervene here. Um,
S2: obviously we can pray toward a restoration of the marriage
S2: that would be preeminent. But regardless of how this plays out,
S2: we trust him as your provider and sustainer. And, um,
S2: we need to just, you know, take one step at
S2: a time here, and you need people around you who
S2: can give you wise counsel and encouragement. And we'd love
S2: to help to provide that as you navigate this. Here's
S2: what I'd like to do. I'd like to give you
S2: the gift of a Christian financial counselor, a certified Christian
S2: financial counselor who could walk alongside you over several sessions
S2: just to try to get everything documented in terms of
S2: where do you stand? What is the income you have?
S2: What are the expenses you have? What debts do you have?
S2: Kind of. Where are we at in the process of
S2: figuring out who's going to be responsible for what? Assuming
S2: you do end up getting divorced and just, you know,
S2: taking this one month at a time as you navigate this.
S2: We'll cover the cost of that if you'd be willing
S2: to take advantage of it. And this would be a trained,
S2: godly financial counselor who would work with you over the phone,
S2: over a series of meetings just to try to get
S2: everything in place and help you put a plan together.
S2: Because often when we're going through something as traumatic as
S2: this is, everything just becomes cloudy. It's hard to make
S2: a decision. You know, it's hard to see the path forward.
S2: And so having somebody who's trained in this area, who,
S2: you know, shares your values and can encourage you spiritually
S2: and pray for you, but also help you make the
S2: right financial moves. You know, I think would be really helpful.
S2: Is that something you'd take advantage of if we provided it?
S7: Oh, definitely.
S2: Okay. Um, let's do that. So, uh, I'm going to
S2: have you, uh, hold the line. We're going to get
S2: your information, and we're going to get one of our
S2: certified Christian financial counselors in touch with you, just to
S2: kind of help you put a plan together on where
S2: you go from here. And, uh, hopefully that'll give you
S2: some clarity and some encouragement. Um, and then this will all,
S2: you know, play out over time and become clear as
S2: to how this proceeds. But just be sure to call
S2: us after you get on the other side of this.
S2: and we want to hear God's, uh, the testimony of
S2: the Lord's faithfulness to you. And and we know it's
S2: it's certainly going to be challenging, but he's going to
S2: walk every step with you. He said he'll never leave
S2: us or forsake us, and we can trust in that.
S2: And this is a difficult season, and we'll have those
S2: in this, in this world. But, um, the Lord is
S2: right there with us. And so you can be confident
S2: in that today. And we, uh, hope we can play
S2: a small part in just being an encouragement to you
S2: and helping you get some wise counsel. So stay right there.
S2: We'll get your information and get somebody in touch with
S2: you and won't cost you a penny. We'll take care
S2: of everything. God bless you. Thanks for calling today. Uh,
S2: let's go to Texas. Hi, Dorothy. Go ahead.
S8: Hello, there.
S2: Hi.
S8: I, I am trying to play catch up with my
S8: retirement accounts, and so I was told that you can
S8: put 8000 a year. Is that per account or is
S8: that across all accounts?
S2: It's per person. So per Social Security number. If you're
S2: talking about an IRA you can put in over the
S2: age of 50, up to 8000 across all of your IRAs.
S2: So if you had one IRA or five IRAs, you
S2: can't put in more than 8000 total per person for
S2: that tax year.
S8: Okay. Okay. And, um, so how can we put away more?
S8: I unfortunately, you know, the consequences of an ill spent
S8: youth have really only been saving for about ten years,
S8: so I need to I need to double down. And
S8: I am in a position that I can, um, as soon,
S8: you know, I have a good job now so I
S8: can pay more in another something. But I really don't
S8: know anything about investments.
S2: Yeah. No problem. Uh, you come to the right place.
S2: So let's talk about what options you have available to you.
S2: So we mentioned the first one. That's an IRA. Uh,
S2: are you married, Dorothy?
S8: Uh, yes, I am. My husband is currently retired already
S8: and he has a fixed income. I have a 4
S8: or 5 seven B. I work for the school district.
S8: I also have a TRS account that they fund, you know,
S8: take money out of my check. And then I also
S8: have a Roth IRA. So I was really hoping that
S8: I could pay.
S2: Yes, I think we lost you there for a second,
S2: but I've got most of that. Um, so that's helpful. Now, uh,
S2: a retired spouse can, uh, you know, contribute to an
S2: IRA as a spousal IRA, which it's not joined. IRAs
S2: are still in one person's name, but as long as
S2: at least one spouse has enough earned income to cover
S2: both contributions so that, you know, self-employment or, uh, you know,
S2: you working as long as you have at least 16,000
S2: in earned income, then you could both contribute to that
S2: Roth IRA or a retirement plan that is going to
S2: be available to you. Um, obviously that tres you're going
S2: to get what you get out of that. If you
S2: have the ability to do salary deferral into a 457 plan. Um,
S2: you know, that would be the next best option. Um,
S2: which would be, you know, you can put in quite
S2: a bit of money in that 457 plan. Uh, would
S2: either be 23,000 or 100% of your compensation. Um, so,
S2: you know, that would be an option. And then if
S2: you're over 50, you can put in another 7500. So
S2: that would allow you to put in up to 30,500
S2: in that 457. Uh, as a catch up. So I
S2: think between your, your teacher's retirement and the 457 that
S2: you're participating in and perhaps increasing the contribution to get
S2: up to the max if you have the ability to
S2: do that, and the 16,000 between the two IRAs for
S2: you and your husband, so long as you have at
S2: least 16,000in earned income. So even though he's not working,
S2: he could do that as a spouse. Uh, you guys,
S2: you know, can put away quite a bit of money. Um,
S2: you know, that's $46,000 right there just for 2024. Between
S2: the 457 B and the two IRAs. So hopefully that
S2: helps you. I know we lost you there. And unfortunately
S2: we're not able to get a follow up from you. But, um,
S2: if you have further questions, don't hesitate to call in
S2: the future. Lord bless you. Well, folks, we've covered a
S2: lot of ground today. You know, as we think about
S2: managing money God's way. Uh, the key is that we
S2: need to first, I think, recognize that God owns it all.
S2: And that sounds simple. And yet it's a profound idea,
S2: because when we recognize God's ownership and the Bible is
S2: very clear, Psalm 24 one, the earth is the Lord's
S2: and everything in it, then it allows us to put
S2: everything in its proper context. We become stewards or managers
S2: that reflect the heart of the master and the management
S2: of the master's resources. But our money now becomes a
S2: tool to accomplish God's purposes. It's not an end. It's
S2: a means to an end. And it's not the meaning
S2: of life, but it can add meaning to our lives
S2: as we see it as really a tool to not
S2: only provide for our families, which is biblical, but perhaps
S2: to this bigger idea of being invited into a story
S2: that's much bigger than us and that's that God's grand generosity, adventure,
S2: you know, generosity just explodes off of every page. That's
S2: really what the Bible is. It's a generosity story, and
S2: it can be best summed up in those nine words,
S2: For God so loved the world he gave. And so
S2: as image bearers of Christ, uh, of of God himself,
S2: we have the ability to be most like him, I believe,
S2: when we're giving and when we hold his provision loosely.
S2: And that's what we want to do. Each day on
S2: this program is take the opportunity to say, God, how
S2: can we reflect your handiwork and majesty and glorify you
S2: through the use of your resources. Because when you own
S2: it all and you do now, every spending decision becomes
S2: a spiritual decision. And here's the reality, folks. When we
S2: take a step back and we look at how we're
S2: allocating God's money, what we realize is that we're telling
S2: a story about what's most important to us in the
S2: way we allocate God's money. The late Larry Burkett used
S2: to say this. He would say, the way we handle
S2: money is actually the clearest indicator into what's going on
S2: in our lives spiritually. Now, for some of us, that
S2: is stops us in our tracks and we say, uh oh,
S2: I don't I don't like the sound of that. And
S2: yet it's an opportunity for each of us to say,
S2: regardless of the the mistakes we've made in the past
S2: or the decisions we've made in our financial life from
S2: this point forward, I want to be found faithful. What
S2: is faithfulness? It's obedience in the same direction over a
S2: long period of time. And when it comes to our money,
S2: we have an opportunity to go to God's Word, to
S2: renew our minds, to get into the scriptures and see
S2: what he has for us in those 2350 verses and
S2: those parables, more than half of them that deal with money,
S2: and we can see the heart of God and how
S2: we should be rich toward God and handle money in
S2: such a way that it's evident that God is our
S2: treasure and not our money. Remember in Mark four in
S2: the parable of the sower, Jesus, when he was explaining
S2: to the disciples what choked out the word from bearing
S2: a 30, 60, 100 fold return? He said it was
S2: the deceitfulness of riches and the cares of this world
S2: and the desires for other things. Let's not let that
S2: be true about us in the way we handle God's money.
S2: Let's hold it loosely. Let's give it generously, and let's
S2: use it to honor the King of Kings. And let's
S2: do that together on this program each day. Thanks for
S2: being along with us today. Hey, faith in Finance Live
S2: is a ministry of Faith, fi and Moody Radio. Thanks
S2: to my team today and we'll see you tomorrow. Come
S2: back and join us then.
S9: Bye bye.