1 00:00:04,320 --> 00:00:07,240 S1: The following program was pre-recorded so our phone lines are 2 00:00:07,240 --> 00:00:08,080 S1: not open. 3 00:00:08,560 --> 00:00:11,000 S2: It's only day two of the new year. How are 4 00:00:11,000 --> 00:00:14,800 S2: those resolutions holding up? Hi, I'm Rob West. Most of 5 00:00:14,800 --> 00:00:18,040 S2: them fade long before Groundhog Day, and often what we 6 00:00:18,040 --> 00:00:21,080 S2: really need is a bit of accountability. Thankfully, there's a 7 00:00:21,079 --> 00:00:23,680 S2: tool that can help. Chad Clark joins us today to 8 00:00:23,720 --> 00:00:26,400 S2: tell you about it. Then we have some great calls 9 00:00:26,400 --> 00:00:29,040 S2: that we've lined up. But since this program is not 10 00:00:29,040 --> 00:00:32,120 S2: live today, please hold your calls until we're back in 11 00:00:32,120 --> 00:00:34,639 S2: the studio. And if you prefer not to call, keep 12 00:00:34,640 --> 00:00:37,160 S2: in mind you can always send us an email and 13 00:00:37,159 --> 00:00:41,680 S2: ask Rob at com. This is faith and finance. Live 14 00:00:41,840 --> 00:00:48,880 S2: biblical wisdom for your financial decisions. Well, there's no better 15 00:00:48,880 --> 00:00:50,839 S2: way to kick off a new year on the program 16 00:00:50,840 --> 00:00:53,320 S2: than with Chad Clark joining us today. He serves as 17 00:00:53,320 --> 00:00:56,880 S2: Chief Technology officer here at Faith Fi, and we're delighted 18 00:00:56,880 --> 00:00:59,200 S2: to have him in the studio. Chad. Happy New year. 19 00:00:59,430 --> 00:01:01,710 S3: Yeah. Happy New Year to you too. Here's to a 20 00:01:01,710 --> 00:01:03,190 S3: great 2026. 21 00:01:03,230 --> 00:01:06,149 S2: It's amazing to think that it's already here. And Chad, 22 00:01:06,190 --> 00:01:08,510 S2: as is so often the case during a new year, 23 00:01:08,510 --> 00:01:12,230 S2: many people are busy setting New Year's resolutions, whether it's 24 00:01:12,230 --> 00:01:15,630 S2: for losing weight or eating healthier. But one thing many 25 00:01:15,630 --> 00:01:18,149 S2: people want to reset in the new year here is, 26 00:01:18,150 --> 00:01:19,670 S2: of course, their budget. 27 00:01:19,870 --> 00:01:22,229 S3: That's right. This is a time of year people tend 28 00:01:22,230 --> 00:01:25,750 S3: to either refresh or restart their budgets. 29 00:01:25,790 --> 00:01:27,670 S2: Now here at Faith five, we have a team of 30 00:01:27,670 --> 00:01:31,710 S2: developers that you lead that have developed budgeting software that 31 00:01:31,709 --> 00:01:34,990 S2: helps people manage their money. We've been doing that for years. 32 00:01:34,990 --> 00:01:37,670 S2: So what have you learned from all of these years 33 00:01:37,670 --> 00:01:39,229 S2: of experience in this area? 34 00:01:39,270 --> 00:01:41,190 S3: Well, I think one of the things I've learned is 35 00:01:41,190 --> 00:01:44,510 S3: that I'm still learning, but an observation I've noticed over 36 00:01:44,510 --> 00:01:47,390 S3: the years is how critically important our perspective is when 37 00:01:47,390 --> 00:01:50,230 S3: it comes to creating and sticking to a budget. As 38 00:01:50,230 --> 00:01:53,110 S3: you know, many people view a budget similar to a diet. 39 00:01:53,150 --> 00:01:55,670 S3: It's something we know we need to do, but sometimes 40 00:01:55,670 --> 00:01:57,550 S3: it's just easier not to do it. 41 00:01:57,590 --> 00:02:00,059 S2: Well, let's unpack that a bit. So how does our 42 00:02:00,060 --> 00:02:03,900 S2: perspective then play into our ability to budget well? 43 00:02:03,940 --> 00:02:06,980 S3: From my experience, the single most important factor I've found 44 00:02:06,980 --> 00:02:09,700 S3: to help people follow through with their budget is they've 45 00:02:09,700 --> 00:02:13,700 S3: defined why they're doing it. That's very different than knowing 46 00:02:13,740 --> 00:02:16,660 S3: what you're trying to do. You may want to get 47 00:02:16,660 --> 00:02:19,740 S3: out of debt or save more, or even be more generous, 48 00:02:19,740 --> 00:02:22,300 S3: but if you don't have a clear understanding of why, 49 00:02:22,660 --> 00:02:24,180 S3: you'll likely not stick with it. 50 00:02:24,180 --> 00:02:26,860 S2: That's really helpful. We need to, of course, start with 51 00:02:26,860 --> 00:02:30,900 S2: the why. And as believers, what should our why be? 52 00:02:31,139 --> 00:02:33,060 S3: Well, I think it's important for us to work out 53 00:02:33,060 --> 00:02:35,780 S3: our own why statements, but hopefully we can look to 54 00:02:35,820 --> 00:02:39,260 S3: Scripture and determine what that looks like. When we look 55 00:02:39,300 --> 00:02:43,460 S3: at Scripture, we see that God is the owner of everything, 56 00:02:43,460 --> 00:02:46,540 S3: and our role is to steward or manage what he's 57 00:02:46,540 --> 00:02:49,579 S3: entrusted to us. And I think understanding this first level 58 00:02:49,580 --> 00:02:53,299 S3: concept plays an important part in answering the why question. 59 00:02:53,340 --> 00:02:56,100 S2: Yeah, this is the central idea of our money management 60 00:02:56,100 --> 00:02:58,820 S2: that God is the owner of everything. We see that 61 00:02:58,820 --> 00:03:01,739 S2: clearly in Psalm 24 one the earth is the Lord's 62 00:03:01,740 --> 00:03:04,340 S2: and everything in it. So then, Chad, why is it 63 00:03:04,340 --> 00:03:07,180 S2: important for us to start with God as owner, as 64 00:03:07,180 --> 00:03:09,660 S2: we think about our budgeting and money management? 65 00:03:09,860 --> 00:03:12,859 S3: Well, I think that that's a critical place for us 66 00:03:12,860 --> 00:03:16,540 S3: to start, because when we recognize God's ownership, it helps 67 00:03:16,540 --> 00:03:19,500 S3: clarify our role as stewards or managers. You see, if 68 00:03:19,500 --> 00:03:22,100 S3: we see ourselves as the owner, we get to do 69 00:03:22,139 --> 00:03:25,580 S3: whatever we want. If we view God as the owner, 70 00:03:25,620 --> 00:03:28,940 S3: then our role as a steward changes. Um, but I 71 00:03:28,940 --> 00:03:31,180 S3: think that the type of owner we believe God to 72 00:03:31,180 --> 00:03:34,419 S3: be is really important. Uh, for instance, in a business, 73 00:03:34,419 --> 00:03:38,340 S3: you can have a passive or an active ownership structure. 74 00:03:38,700 --> 00:03:43,300 S3: Passive owners turn the management responsibilities over to the managers 75 00:03:43,300 --> 00:03:46,060 S3: and aren't involved in the day to day decisions. I 76 00:03:46,060 --> 00:03:47,860 S3: think this is how we tend to view God when 77 00:03:47,860 --> 00:03:50,380 S3: we refer to him as an owner. At least that's 78 00:03:50,380 --> 00:03:51,780 S3: the way I used to view him. 79 00:03:51,820 --> 00:03:54,380 S2: Yeah, this would be like you managing a coffee shop 80 00:03:54,380 --> 00:03:58,130 S2: that someone else owns, but the owner isn't involved at all. 81 00:03:58,170 --> 00:04:00,930 S2: He simply gave you the keys and said, good luck. 82 00:04:00,970 --> 00:04:03,570 S3: Yeah, I think so. And again, in this, in this 83 00:04:03,610 --> 00:04:06,570 S3: kind of structure, it seems as if we are the 84 00:04:06,570 --> 00:04:09,730 S3: owners in many ways because we get to make all 85 00:04:09,730 --> 00:04:14,010 S3: the decisions. We're not really consulting with the owner. We're 86 00:04:14,010 --> 00:04:17,089 S3: the manager slash owner of the coffee shop. And I 87 00:04:17,089 --> 00:04:20,290 S3: think that that greatly influences the way that we make 88 00:04:20,330 --> 00:04:21,650 S3: money decisions. 89 00:04:21,650 --> 00:04:24,969 S2: So then compare and contrast that with an active owner. 90 00:04:25,010 --> 00:04:27,890 S3: Yeah. So active owners on the other hand, work closely 91 00:04:27,890 --> 00:04:31,089 S3: with the managers to help them with decisions. And I 92 00:04:31,089 --> 00:04:34,089 S3: believe the Holy Spirit wants to be an active owner 93 00:04:34,089 --> 00:04:38,290 S3: of our finances. God's entrusted us with his money, and 94 00:04:38,290 --> 00:04:40,850 S3: he's willing to help guide us and direct us when 95 00:04:40,850 --> 00:04:43,849 S3: we seek his help. This takes a big burden off 96 00:04:43,850 --> 00:04:46,170 S3: of us from having to figure out things all on 97 00:04:46,170 --> 00:04:46,770 S3: our own. 98 00:04:46,930 --> 00:04:49,970 S2: This is so helpful, Chad, and perhaps a different idea 99 00:04:49,970 --> 00:04:52,410 S2: than we've considered in the past as we think about 100 00:04:52,410 --> 00:04:55,680 S2: our role as a steward and God is the owner. 101 00:04:55,760 --> 00:04:57,760 S2: When we come back after the break, we're going to 102 00:04:57,760 --> 00:05:01,320 S2: talk about the implications of God being an active owner 103 00:05:01,320 --> 00:05:04,000 S2: as we manage money. We'll talk about how all of 104 00:05:04,000 --> 00:05:06,720 S2: this relates to budgeting, and how the Faith buy app 105 00:05:06,720 --> 00:05:09,280 S2: can help you in your stewardship journey. If one of 106 00:05:09,279 --> 00:05:12,320 S2: your New Year's resolutions is to get your budget back 107 00:05:12,320 --> 00:05:15,760 S2: on track, we're here to help. Chad Clark, chief technology 108 00:05:15,760 --> 00:05:18,719 S2: officer here at Faith Fi, is with us today. We'll 109 00:05:18,720 --> 00:05:36,480 S2: be right back. Stay with us. Thanks for joining us 110 00:05:36,480 --> 00:05:39,160 S2: today on Faith and Finance Live. As we step into 111 00:05:39,160 --> 00:05:41,760 S2: day two of the New year. Now, I'm sure many 112 00:05:41,760 --> 00:05:44,560 S2: of you are still thinking about your resolutions and how 113 00:05:44,560 --> 00:05:47,680 S2: to get 2026 moving in the right direction. And I'm 114 00:05:47,680 --> 00:05:50,720 S2: sure at least some of you, perhaps a majority of you, 115 00:05:50,760 --> 00:05:54,310 S2: are thinking about that as it relates to your finances? 116 00:05:54,310 --> 00:05:56,790 S2: How do you get back on track with your money? Well, 117 00:05:56,790 --> 00:05:59,710 S2: with God's money. And we know that budgeting is a 118 00:05:59,710 --> 00:06:02,390 S2: part of that. Chad Clark joins us today to talk 119 00:06:02,390 --> 00:06:05,390 S2: about how you can do that. But he said before 120 00:06:05,390 --> 00:06:09,230 S2: the break, that perspective is everything. And we started with 121 00:06:09,230 --> 00:06:13,150 S2: this central idea as stewards, recognizing that God is the 122 00:06:13,150 --> 00:06:16,670 S2: owner of everything. Chad, you introduced a concept to us 123 00:06:16,670 --> 00:06:20,830 S2: around God's ownership in terms of determining whether God is 124 00:06:20,830 --> 00:06:23,910 S2: more like an active or a passive owner. So why 125 00:06:23,910 --> 00:06:25,550 S2: don't you frame that back up for us? 126 00:06:25,830 --> 00:06:29,029 S3: Yeah, I think that understanding kind of God's role as 127 00:06:29,029 --> 00:06:32,630 S3: an owner helps influence the way that we steward his resources. 128 00:06:33,029 --> 00:06:37,270 S3: A passive owner is somebody who isn't actively involved in 129 00:06:37,270 --> 00:06:40,870 S3: the day to day decisions, whereas an active owner actually 130 00:06:40,870 --> 00:06:44,430 S3: wants to participate, that wants to help and be involved 131 00:06:44,430 --> 00:06:47,070 S3: in those daily financial decisions. And I think that's really 132 00:06:47,070 --> 00:06:50,190 S3: important when we think about God as an owner, to understand, 133 00:06:50,190 --> 00:06:53,190 S3: is he a passive or an active owner in our 134 00:06:53,190 --> 00:06:54,310 S3: financial decisions? 135 00:06:54,350 --> 00:06:57,070 S2: That's exactly right. And we shared this analogy. It's kind 136 00:06:57,110 --> 00:07:00,469 S2: of like managing a coffee shop that someone else owns, 137 00:07:00,589 --> 00:07:03,270 S2: and a passive owner would simply say, here are the keys, 138 00:07:03,270 --> 00:07:06,830 S2: good luck, and then walk away. But an active owner 139 00:07:06,830 --> 00:07:11,030 S2: would handle that differently. So continuing our coffee shop analogy, 140 00:07:11,030 --> 00:07:13,830 S2: when we look at an active owner, it would be 141 00:07:13,830 --> 00:07:16,590 S2: like the owner handing you the keys and saying, call 142 00:07:16,630 --> 00:07:19,670 S2: me anytime you need help. I'm here for you. You 143 00:07:19,710 --> 00:07:21,190 S2: don't need to go this alone. 144 00:07:21,230 --> 00:07:23,670 S3: Yeah, I think so. And I think, like we said before, 145 00:07:23,710 --> 00:07:26,510 S3: I believe the Holy Spirit wants to be that active 146 00:07:26,510 --> 00:07:29,510 S3: owner who is helping us like he is the helper. 147 00:07:29,510 --> 00:07:32,030 S3: If we're willing to reach out and contact him. Just 148 00:07:32,030 --> 00:07:35,630 S3: like the coffee shop owner. He's not overbearing, but he's 149 00:07:35,630 --> 00:07:38,550 S3: there and available for when you need him. And so 150 00:07:38,550 --> 00:07:41,950 S3: we just recognize God's role as an active owner that 151 00:07:41,950 --> 00:07:44,670 S3: we can go to, that we can bring our struggles, 152 00:07:44,670 --> 00:07:47,630 S3: that we can bring our opportunities to, and trust that 153 00:07:47,630 --> 00:07:50,060 S3: he will give us some clarity and And direction on 154 00:07:50,060 --> 00:07:52,540 S3: how we're to proceed with managing his resources. 155 00:07:52,740 --> 00:07:55,780 S2: Right now, at the core of our discussion today is budgeting, 156 00:07:55,780 --> 00:07:59,140 S2: getting on track, and managing God's money wisely. So how 157 00:07:59,140 --> 00:08:02,500 S2: does all of this that we've been discussing relate to budgeting? 158 00:08:02,500 --> 00:08:05,020 S3: Well, I think that again, we go back to this 159 00:08:05,020 --> 00:08:06,980 S3: idea of God is a passive owner. I don't think 160 00:08:06,980 --> 00:08:09,140 S3: he really wants to be involved in my decisions. I 161 00:08:09,140 --> 00:08:11,620 S3: might be tempted to think I can do whatever I want, 162 00:08:11,620 --> 00:08:14,780 S3: although one day we will ultimately give an account, or 163 00:08:14,780 --> 00:08:17,220 S3: I might feel this heavy burden of having to make 164 00:08:17,220 --> 00:08:20,820 S3: decisions on my own, and I'm left having to guess 165 00:08:20,820 --> 00:08:24,260 S3: what the owner expects me to do. However, if I 166 00:08:24,260 --> 00:08:27,300 S3: view God as an active owner, I may view my 167 00:08:27,300 --> 00:08:30,020 S3: role as a manager differently. I know that I can 168 00:08:30,020 --> 00:08:33,220 S3: go to him in confidence, knowing he wants to help, 169 00:08:33,420 --> 00:08:38,180 S3: and our relationship to the owner directly impacts our role 170 00:08:38,179 --> 00:08:40,579 S3: as a steward. But I think the key idea when 171 00:08:40,580 --> 00:08:44,579 S3: it comes to budgeting is to understand our role as 172 00:08:44,580 --> 00:08:47,340 S3: a steward of God's resources. 173 00:08:47,380 --> 00:08:49,930 S2: Yeah. So the budget is a tool that helps us 174 00:08:49,970 --> 00:08:54,050 S2: wisely manage the King's resources on a practical level, day 175 00:08:54,050 --> 00:08:54,610 S2: to day. 176 00:08:54,650 --> 00:08:56,370 S3: It is. And I think this goes back to what 177 00:08:56,370 --> 00:08:59,890 S3: we were talking about originally, which is defining why you 178 00:08:59,890 --> 00:09:02,850 S3: have a budget. If you see God as an active 179 00:09:02,850 --> 00:09:05,850 S3: owner of your finances, the answer to why you have 180 00:09:05,850 --> 00:09:08,730 S3: a budget is because you take the role of stewarding 181 00:09:08,730 --> 00:09:12,850 S3: the King's resources seriously. You desire to glorify God in 182 00:09:12,850 --> 00:09:16,610 S3: your financial decisions, and a budget simply becomes a tool 183 00:09:16,610 --> 00:09:19,810 S3: to do this. It's a means to an end, not 184 00:09:19,809 --> 00:09:22,210 S3: an end in and of itself, which I think a 185 00:09:22,210 --> 00:09:24,170 S3: lot of people tend to view a budget of I 186 00:09:24,170 --> 00:09:26,010 S3: just need to set up a budget. But if you 187 00:09:26,010 --> 00:09:28,890 S3: don't understand that that's just a tool as part of 188 00:09:28,890 --> 00:09:32,130 S3: your stewardship role, you're going to miss. You're going to 189 00:09:32,130 --> 00:09:34,570 S3: miss the boat. You're going to probably not be successful 190 00:09:34,570 --> 00:09:38,250 S3: in budgeting because you haven't clearly identified your why. 191 00:09:38,530 --> 00:09:41,290 S2: Right. So it starts with the why. Now we understand 192 00:09:41,290 --> 00:09:43,850 S2: why we're doing it. We realize this is a high 193 00:09:43,850 --> 00:09:46,890 S2: calling that we've been given as stewards. So how can 194 00:09:47,040 --> 00:09:50,319 S2: the Faith VI app practically help me manage my money? 195 00:09:50,360 --> 00:09:53,080 S3: We built the Faith VI app, recognizing the need for 196 00:09:53,080 --> 00:09:55,560 S3: a tool to help people be good stewards. But we 197 00:09:55,559 --> 00:09:59,480 S3: also recognize that not everybody is the same. So when 198 00:09:59,480 --> 00:10:01,679 S3: we refer to this idea of a budget, what we 199 00:10:01,679 --> 00:10:05,920 S3: really mean is a system for making financial decisions. The 200 00:10:05,920 --> 00:10:09,760 S3: Faith VI app was designed with multiple systems to help 201 00:10:09,760 --> 00:10:13,120 S3: fit your unique money management style. At the end of 202 00:10:13,120 --> 00:10:15,320 S3: the day, it's not really about how you're managing the 203 00:10:15,320 --> 00:10:17,760 S3: money entrusted to you. It's knowing that you have a 204 00:10:17,760 --> 00:10:20,800 S3: system in place to help you manage it well. 205 00:10:20,920 --> 00:10:22,920 S2: Yeah, and if you're going to do this differently, it 206 00:10:22,920 --> 00:10:25,880 S2: has to become a part of your daily routine, right? 207 00:10:25,920 --> 00:10:28,200 S3: It does. I like to tell people it's like if 208 00:10:28,200 --> 00:10:30,280 S3: you're a coffee drinker, I'm a coffee drinker. Rob, I 209 00:10:30,280 --> 00:10:32,839 S3: know you're a coffee drinker. If you don't have your 210 00:10:32,840 --> 00:10:34,760 S3: coffee in the morning, you notice it. You're just like 211 00:10:34,760 --> 00:10:37,840 S3: something's off. A little bit my routines off a little bit. Well, 212 00:10:37,840 --> 00:10:40,360 S3: when you have a budget and it becomes a part 213 00:10:40,360 --> 00:10:43,240 S3: of your toolkit, you just know that if you're not 214 00:10:43,240 --> 00:10:45,280 S3: looking at it, if you're not operating off of it, 215 00:10:45,429 --> 00:10:47,990 S3: Something's off. And so it just becomes a part of 216 00:10:47,990 --> 00:10:50,270 S3: just how you operate. And I think that's a really 217 00:10:50,270 --> 00:10:53,350 S3: important perspective to have when you go into budgeting. It's 218 00:10:53,350 --> 00:10:55,510 S3: not just, again, I'm going to have a budget, but 219 00:10:55,510 --> 00:10:58,270 S3: it really becomes a part of my toolkit to live 220 00:10:58,309 --> 00:10:59,189 S3: day to day. 221 00:10:59,350 --> 00:11:02,310 S2: No question about that. Now, Chad, for those out there 222 00:11:02,309 --> 00:11:04,830 S2: listening to you right now that are saying, I've been 223 00:11:04,830 --> 00:11:07,870 S2: down this road before, I've tried to budget, it's too 224 00:11:07,870 --> 00:11:09,990 S2: much work. What would you say to them? 225 00:11:10,030 --> 00:11:12,270 S3: Well, I would say obviously, I'd encourage you to check 226 00:11:12,309 --> 00:11:14,830 S3: out the Faifai app. And here's why. Because like I 227 00:11:14,830 --> 00:11:19,190 S3: said before, we've got three unique systems built into this application. 228 00:11:19,190 --> 00:11:21,390 S3: And when you come into the app, we're going to 229 00:11:21,390 --> 00:11:25,390 S3: help you find a system that fits your personality uniquely. 230 00:11:25,390 --> 00:11:27,310 S3: And that's different than we see in a lot of 231 00:11:27,309 --> 00:11:29,630 S3: different apps out there. A lot of other apps are 232 00:11:29,630 --> 00:11:32,230 S3: very rigid. They want you to follow a certain set 233 00:11:32,270 --> 00:11:34,830 S3: of steps and rules, and those are fine and those 234 00:11:34,830 --> 00:11:38,350 S3: are great. And we celebrate people that are successful with those. 235 00:11:38,350 --> 00:11:41,030 S3: But for us, we recognize that you're unique and that 236 00:11:41,030 --> 00:11:43,750 S3: you have unique characteristics. And so we try to meet 237 00:11:43,750 --> 00:11:46,750 S3: you where you are in your journey, and the tool 238 00:11:46,750 --> 00:11:49,190 S3: will help you set up a system that's going to 239 00:11:49,230 --> 00:11:52,790 S3: set you up for success. And we also love to 240 00:11:52,830 --> 00:11:55,990 S3: support you along the way. We've got Certified Christian Financial 241 00:11:55,990 --> 00:11:59,950 S3: Counselors standing by, ready to help you overcome some of 242 00:11:59,950 --> 00:12:02,309 S3: the barriers that may have tripped you up in the past. 243 00:12:02,350 --> 00:12:05,390 S3: We've got webinars and other resources that we're making available 244 00:12:05,390 --> 00:12:08,750 S3: this year to just help you be successful and start 245 00:12:08,750 --> 00:12:10,229 S3: the year off strong. 246 00:12:10,230 --> 00:12:12,590 S2: And what about those that are married that want to 247 00:12:12,590 --> 00:12:15,150 S2: stay on the same page in their budget together? Is 248 00:12:15,150 --> 00:12:17,190 S2: there a way that they can do that through the 249 00:12:17,190 --> 00:12:18,030 S2: Faith buy app? 250 00:12:18,230 --> 00:12:21,630 S3: Yeah, absolutely. And we encourage you, if you are married, 251 00:12:21,630 --> 00:12:24,429 S3: that you use this together. I know that in a 252 00:12:24,470 --> 00:12:28,110 S3: lot of households, one person manages the money. Um, and 253 00:12:28,110 --> 00:12:30,990 S3: the other one sometimes isn't overly involved. Uh, for my 254 00:12:30,990 --> 00:12:32,990 S3: wife and I, when we first got married, that was 255 00:12:32,990 --> 00:12:36,069 S3: our story. I was the finance guy. She didn't really 256 00:12:36,070 --> 00:12:38,870 S3: have a whole lot of insight or say into what 257 00:12:38,870 --> 00:12:41,910 S3: was going on financially. But when we got on a 258 00:12:41,910 --> 00:12:45,380 S3: system and we started using a budgeting tool. It changed everything. 259 00:12:45,380 --> 00:12:48,100 S3: And for us specifically, we use the Faifai app. Obviously, 260 00:12:48,460 --> 00:12:51,740 S3: it's changed the way that we talk about money. I 261 00:12:51,740 --> 00:12:54,900 S3: can't tell you how many times we got in fights 262 00:12:54,900 --> 00:12:57,620 S3: as an early married couple about money. It was the 263 00:12:57,660 --> 00:12:59,900 S3: number one source of conflict. I know you say that 264 00:12:59,900 --> 00:13:01,860 S3: on this show, but for my wife and I, it 265 00:13:01,860 --> 00:13:04,540 S3: really was. And the ironic piece was I was the 266 00:13:04,540 --> 00:13:06,940 S3: finance guy. Yeah. And we could not get on the 267 00:13:06,940 --> 00:13:09,740 S3: same page, but the budgeting tool allowed us to see 268 00:13:09,740 --> 00:13:13,420 S3: where we're at, to have really constructive conversations about how 269 00:13:13,420 --> 00:13:17,540 S3: we're stewarding God's resources. Um, and it's helped our relationship 270 00:13:17,540 --> 00:13:21,300 S3: just tremendously. Um, and so, yeah, we're grateful for this tool. 271 00:13:21,300 --> 00:13:22,780 S3: And I know that a lot of people, a lot 272 00:13:22,820 --> 00:13:24,660 S3: of couples have similar testimonies. 273 00:13:24,700 --> 00:13:26,580 S2: Now, a lot of folks have been listening to this 274 00:13:26,580 --> 00:13:28,980 S2: program and go all the way back to the late 275 00:13:28,980 --> 00:13:33,179 S2: Larry Burkett. Larry obviously made the envelope system popular, and 276 00:13:33,179 --> 00:13:36,420 S2: there's actually one of the three approaches that uses that 277 00:13:36,420 --> 00:13:38,500 S2: system in a digital format, right? 278 00:13:38,540 --> 00:13:42,050 S3: It does. Yeah. If you are looking for an envelope 279 00:13:42,050 --> 00:13:45,690 S3: style of money management. The app does this, from what 280 00:13:45,690 --> 00:13:47,850 S3: we've heard, better than many of the tools out there, 281 00:13:47,850 --> 00:13:49,970 S3: so we'd love for you to to check that out. 282 00:13:49,970 --> 00:13:52,610 S3: And this system is really great because it allows you 283 00:13:52,610 --> 00:13:56,410 S3: to carry balances in your categories forward, so you can 284 00:13:56,410 --> 00:14:00,089 S3: accumulate funds in that auto repair or that vacation envelope. 285 00:14:00,090 --> 00:14:02,450 S3: And so we'd love for you to check that system out. 286 00:14:02,610 --> 00:14:05,490 S2: All right, Chad, great to have you here today. Thanks 287 00:14:05,490 --> 00:14:06,410 S2: for stopping by. 288 00:14:06,450 --> 00:14:07,330 S3: Thanks so much. 289 00:14:07,370 --> 00:14:09,610 S2: If one of your New Year's resolutions is to get 290 00:14:09,610 --> 00:14:12,490 S2: your budget back on track, we're here to help. Chad Clark, 291 00:14:12,530 --> 00:14:15,770 S2: Chief Technology Officer here at Faith fi, with us today. 292 00:14:15,890 --> 00:14:18,810 S2: You can download the Faith fi app by visiting Faith. 293 00:14:19,130 --> 00:14:23,370 S2: Com and clicking app or simply searching Faith fi in 294 00:14:23,370 --> 00:14:26,170 S2: your app store. We'll be right back. Stay with us. 295 00:14:34,690 --> 00:14:36,330 S2: Great to have you with us today on Faith and 296 00:14:36,330 --> 00:14:39,130 S2: Finance live. I'm Rob West. Our team is away from 297 00:14:39,130 --> 00:14:41,800 S2: the studio today. We're not here, so don't call in. 298 00:14:41,800 --> 00:14:44,560 S2: But we lined up some great questions in advance and 299 00:14:44,600 --> 00:14:47,120 S2: we'll get to those in just a moment. First, you know, 300 00:14:47,160 --> 00:14:49,200 S2: as I look at the scriptures, one of the big 301 00:14:49,200 --> 00:14:52,360 S2: ideas that literally jumps off the page when you look 302 00:14:52,360 --> 00:14:55,600 S2: at this area of finance in light of a biblical worldview, 303 00:14:55,600 --> 00:14:59,880 S2: is the idea of contentment. We should foster an attitude 304 00:14:59,880 --> 00:15:03,240 S2: of contentment. And I think that's the first understanding, is 305 00:15:03,240 --> 00:15:07,200 S2: that it is, in fact, an attitude. Matthew 633 says, 306 00:15:07,200 --> 00:15:10,120 S2: but seek first the kingdom of God and his righteousness, 307 00:15:10,320 --> 00:15:12,880 S2: and all these things will be added to you. If 308 00:15:12,880 --> 00:15:17,600 S2: our aim is the kingdom, then that changes our perspective. 309 00:15:17,600 --> 00:15:21,000 S2: It makes it focused on the eternal, not the temporal. 310 00:15:21,000 --> 00:15:23,800 S2: And that's a game changer. Well then, from an attitude, 311 00:15:23,800 --> 00:15:27,720 S2: we learn that contentment is in fact learned by the apostle. 312 00:15:27,720 --> 00:15:30,000 S2: Paul said it this way, not that I'm speaking of 313 00:15:30,000 --> 00:15:33,560 S2: being in need, for I have learned in whatever situation 314 00:15:33,560 --> 00:15:38,160 S2: I am to be content. That's Philippians 411. So it's 315 00:15:38,160 --> 00:15:41,640 S2: a learned behavior. It's also a choice. You know, I 316 00:15:41,680 --> 00:15:45,480 S2: can choose to be content in every circumstance. Rich or poor, 317 00:15:45,640 --> 00:15:50,880 S2: happy or sad, easy or difficult. Because as Christ followers. Well, 318 00:15:50,920 --> 00:15:54,760 S2: our position in Christ never changes. And I think that's 319 00:15:54,760 --> 00:15:57,280 S2: an important reminder for us today. And perhaps it could 320 00:15:57,280 --> 00:16:00,600 S2: change your whole approach to your money. All right, let's 321 00:16:00,600 --> 00:16:03,160 S2: get to our calls today that we've lined up for you. 322 00:16:03,360 --> 00:16:05,440 S2: Let's go to New York, Cliff. Go ahead. Sir. 323 00:16:06,320 --> 00:16:07,440 S4: Hi. How are you? 324 00:16:07,720 --> 00:16:09,160 S2: Doing well. Thanks for your call. 325 00:16:10,160 --> 00:16:15,200 S4: No thank you. I have at this agency 20,000. What's 326 00:16:15,200 --> 00:16:18,600 S4: going on? Is, uh. What? I be able to take 327 00:16:18,600 --> 00:16:24,400 S4: that and pay off the mortgage, which is, uh. It 328 00:16:24,400 --> 00:16:27,440 S4: will be paid off in 27. Would I be able 329 00:16:27,440 --> 00:16:30,120 S4: to take that and pay off the mortgage now instead 330 00:16:30,120 --> 00:16:31,360 S4: of waiting until then? 331 00:16:32,280 --> 00:16:34,720 S2: Yeah. So you're asking or you've already done that? 332 00:16:35,240 --> 00:16:36,000 S4: I'm asking. 333 00:16:36,360 --> 00:16:39,110 S2: Okay. Got it? Yeah. Got it. Uh, so this is 334 00:16:39,150 --> 00:16:42,510 S2: a retirement plan or a pension? The 20,000, is that right? 335 00:16:43,110 --> 00:16:47,070 S4: Yes, a pension, in other words, we're no longer the 336 00:16:47,070 --> 00:16:50,470 S4: people who are the middle people holding the money for us. 337 00:16:50,510 --> 00:16:53,070 S4: We're no longer having a relationship with them. 338 00:16:53,110 --> 00:16:53,590 S2: I see. 339 00:16:53,630 --> 00:16:57,030 S4: So they want to, uh. They want me to. Either 340 00:16:57,070 --> 00:16:59,110 S4: I can take it, roll it over, or do something 341 00:16:59,110 --> 00:17:02,550 S4: with it. But I figure if I'm a, uh, would 342 00:17:02,550 --> 00:17:05,510 S4: it be to my advantage just to pay the mortgage 343 00:17:05,510 --> 00:17:06,590 S4: off in advance? 344 00:17:06,869 --> 00:17:08,869 S2: Yeah. Yeah, it's a good question. What is the interest 345 00:17:08,869 --> 00:17:09,869 S2: rate on that mortgage? 346 00:17:10,830 --> 00:17:12,429 S4: 3.25. 347 00:17:12,750 --> 00:17:16,150 S2: Okay. Uh, and talk to me about it. Sounds like 348 00:17:16,150 --> 00:17:19,750 S2: you're considering retirement, but give me the timeline that you're 349 00:17:19,750 --> 00:17:21,470 S2: thinking and praying through at this point. 350 00:17:23,310 --> 00:17:32,229 S4: Um, I was thinking potentially next year, uh, something to 351 00:17:32,270 --> 00:17:33,150 S4: that extent. 352 00:17:33,310 --> 00:17:35,150 S2: Okay. And what is your age? 353 00:17:36,540 --> 00:17:37,460 S4: 62. 354 00:17:37,780 --> 00:17:39,820 S2: Alright. And what are you going to do after you 355 00:17:39,820 --> 00:17:42,020 S2: retire from an income standpoint? 356 00:17:43,220 --> 00:17:47,420 S4: Well, once I retire, once I retire, the only bill 357 00:17:47,420 --> 00:17:50,500 S4: that I would have is it would be just a 358 00:17:50,500 --> 00:17:54,020 S4: car payment of about 460 bucks. And I would be 359 00:17:54,060 --> 00:17:57,580 S4: perhaps in almost 5000 retirement. 360 00:17:57,900 --> 00:17:59,500 S2: And where is that going to be coming from? 361 00:17:59,900 --> 00:18:02,860 S4: Oh, uh, retirement and Social Security. 362 00:18:03,180 --> 00:18:05,820 S2: Okay, so you've looked at what you're going to get 363 00:18:05,820 --> 00:18:08,620 S2: at full retirement age, and then you've backed it down 364 00:18:08,619 --> 00:18:11,500 S2: for the permanent reduction you would take by taking it 365 00:18:11,500 --> 00:18:12,780 S2: early at 62. 366 00:18:13,700 --> 00:18:14,380 S4: Right. 367 00:18:14,420 --> 00:18:18,540 S2: Okay. And so that number plus some sort of retirement, 368 00:18:18,540 --> 00:18:20,419 S2: are you going to get a monthly check from a 369 00:18:20,420 --> 00:18:22,820 S2: pension or are you do you have a lump sum 370 00:18:22,820 --> 00:18:25,419 S2: you're going to be drawing income from. Talk to me 371 00:18:25,420 --> 00:18:26,700 S2: about your retirement plan. 372 00:18:27,420 --> 00:18:30,620 S4: Well I have a 401 K of 100,000. 373 00:18:30,859 --> 00:18:35,410 S2: Okay. And so how much of that? 5000 a month 374 00:18:35,410 --> 00:18:38,050 S2: is coming from your reduced Social Security? 375 00:18:38,770 --> 00:18:43,770 S4: Oh, uh, actually, it would be like 20 something hundred. 376 00:18:43,810 --> 00:18:49,889 S4: Social security? 20 something hundred from the retirement from the job. 377 00:18:50,369 --> 00:18:53,970 S2: Okay. And so that's 2100 a month from the retirement, 378 00:18:53,970 --> 00:18:56,450 S2: meaning you're going to be taking 2100 a month from 379 00:18:56,450 --> 00:18:59,490 S2: 100,401 K or something else. 380 00:19:00,010 --> 00:19:02,850 S4: No, no, I'm not going to touch the 401 K. Okay. 381 00:19:02,850 --> 00:19:04,490 S4: Just stay where it's at. 382 00:19:04,650 --> 00:19:06,810 S2: So they're going to give you a pension of a 383 00:19:06,850 --> 00:19:08,889 S2: payment for life for 2100. 384 00:19:10,090 --> 00:19:13,250 S4: About 23 2400. 385 00:19:13,570 --> 00:19:15,929 S2: Okay. And that's just a monthly check they're going to 386 00:19:15,930 --> 00:19:17,850 S2: send you for as long as you live. Is that right? 387 00:19:18,450 --> 00:19:21,889 S4: Right. Social security and then the other job when I, 388 00:19:22,130 --> 00:19:24,970 S4: when I retire is going to be 20 something hundred. 389 00:19:25,770 --> 00:19:28,929 S2: Okay. Um, and so, so you're going to get a 390 00:19:28,930 --> 00:19:32,690 S2: check for 20 around 2300 plus Social Security. Both those 391 00:19:32,690 --> 00:19:34,489 S2: go for the rest of your life. And then on 392 00:19:34,490 --> 00:19:37,050 S2: top of that, you've got a 401 K with about 100,000. 393 00:19:37,090 --> 00:19:37,730 S2: Is that right? 394 00:19:38,490 --> 00:19:39,250 S4: Correct. 395 00:19:39,290 --> 00:19:42,250 S2: All right. And then what? Any other assets or savings? 396 00:19:43,850 --> 00:19:49,850 S4: Uh, I got, uh, 20 something thousand in a savings. 397 00:19:50,490 --> 00:19:53,370 S4: And I have a few other savings with about 2 398 00:19:53,369 --> 00:19:55,530 S4: to 4000 in it, a couple more. 399 00:19:55,770 --> 00:19:57,690 S2: All right. And what's the balance on the mortgage? 400 00:19:59,369 --> 00:20:06,450 S4: Uh oh. Uh, about 15,015. 15. Five. 401 00:20:06,890 --> 00:20:09,690 S2: Okay. Yeah. Well, you know, here's the thing. I mean, 402 00:20:09,730 --> 00:20:11,770 S2: I would love for you to pay off that mortgage. 403 00:20:11,770 --> 00:20:13,609 S2: I'm all about that. And I'd love for you to 404 00:20:13,650 --> 00:20:16,450 S2: do it kind of in time. The payoff of that, 405 00:20:16,770 --> 00:20:19,690 S2: if not sooner, at least by when you retire. Because 406 00:20:19,690 --> 00:20:21,930 S2: it'd be great if that payment was gone. But here's 407 00:20:21,930 --> 00:20:26,609 S2: the reality I'd rather you not take that 20,000 and 408 00:20:26,609 --> 00:20:30,169 S2: add it to your taxable income, especially while you're still working. 409 00:20:30,369 --> 00:20:34,119 S2: I'd rather you, you know, let that grow. Your interest 410 00:20:34,119 --> 00:20:36,359 S2: rate on that mortgage is low. It sounds like even 411 00:20:36,359 --> 00:20:39,440 S2: once you retire with your, you know, reduced Social security 412 00:20:39,440 --> 00:20:43,760 S2: and your your monthly check for 2300 a month, not 413 00:20:43,760 --> 00:20:46,520 S2: counting the 401 K and anything else you have, and 414 00:20:46,520 --> 00:20:48,800 S2: you've already got an emergency fund, it sounds like you're 415 00:20:48,800 --> 00:20:51,520 S2: going to have plenty of surplus. So I would just 416 00:20:51,520 --> 00:20:55,240 S2: focus on paying off that mortgage out of current cash 417 00:20:55,240 --> 00:20:59,840 S2: flow and monthly margin, rather than putting a bunch of 418 00:20:59,840 --> 00:21:02,760 S2: additional income on top of the other income you have. 419 00:21:02,920 --> 00:21:06,120 S2: That's all going to be taxable. And let's, you know, 420 00:21:06,160 --> 00:21:10,399 S2: let's roll that 20,000 into an IRA that ultimately you're 421 00:21:10,400 --> 00:21:13,120 S2: going to roll the 401 K into. And then let's 422 00:21:13,119 --> 00:21:15,480 S2: just keep all that growing for the future. So if 423 00:21:15,480 --> 00:21:17,320 S2: you need it down the road for long term care 424 00:21:17,320 --> 00:21:20,320 S2: or something, you've got it rather than you pulling it 425 00:21:20,320 --> 00:21:23,600 S2: out paying the tax on it. And now what's bigger 426 00:21:23,600 --> 00:21:26,720 S2: than that is it's no longer available to be invested. 427 00:21:26,840 --> 00:21:28,679 S2: So that's going to be my best advice. I'm up 428 00:21:28,680 --> 00:21:31,030 S2: against a break here. Let's finish off the air. Cliff, 429 00:21:31,030 --> 00:21:33,350 S2: I want to see if you have any questions on that. Well, folks, 430 00:21:33,350 --> 00:21:35,189 S2: before we head to this break, let me remind you, 431 00:21:35,190 --> 00:21:39,510 S2: if you haven't checked out Faith comm, that's faith. Com 432 00:21:39,710 --> 00:21:41,709 S2: I'd love for you to do that. You'll find the 433 00:21:41,710 --> 00:21:45,190 S2: best content in biblical finance there for you to grow 434 00:21:45,190 --> 00:21:48,949 S2: in your understanding of managing money God's way. You'll find 435 00:21:48,950 --> 00:21:52,590 S2: our community and the money management system. It's all there 436 00:21:52,590 --> 00:21:55,950 S2: at Faith comm. Now, again, a reminder we're not here today, 437 00:21:55,950 --> 00:21:58,670 S2: but more of your questions that we lined up after 438 00:21:58,670 --> 00:22:05,630 S2: the break. Delighted to have you with us today on 439 00:22:05,630 --> 00:22:08,630 S2: Faith and Finance Live. We're not here today. Our team 440 00:22:08,630 --> 00:22:11,390 S2: is away from the studio. This is pre-recorded, so don't 441 00:22:11,390 --> 00:22:13,750 S2: call in. But we've got some great questions we lined 442 00:22:13,750 --> 00:22:16,070 S2: up in advance. Before we go to the phones, let 443 00:22:16,070 --> 00:22:18,950 S2: me remind you, faith and faith in finance live is 444 00:22:18,950 --> 00:22:21,510 S2: listener supported. If you'd like to be a financial partner, 445 00:22:21,510 --> 00:22:25,109 S2: you can do that at Faith. Com just click give 446 00:22:25,150 --> 00:22:28,030 S2: thanks in advance. All right. Let's head to the phones. 447 00:22:28,070 --> 00:22:32,540 S2: Let's head right over to Texas and welcome Monica. Go ahead. 448 00:22:33,060 --> 00:22:33,940 S5: Hi. How are you? 449 00:22:34,220 --> 00:22:35,540 S2: Doing great. Thanks for your call. 450 00:22:36,060 --> 00:22:38,619 S5: Yeah. So my question was, um, I'm a stay at 451 00:22:38,619 --> 00:22:41,180 S5: home mom, and me and my husband were wondering if 452 00:22:41,180 --> 00:22:44,180 S5: we should be contributing to my retirement. 453 00:22:44,619 --> 00:22:48,180 S2: Mhm. Yeah. Uh, I love that. And so I think 454 00:22:48,180 --> 00:22:51,900 S2: it just you have to look at the priority order of, 455 00:22:52,100 --> 00:22:54,740 S2: you know, your financial goals. So let me just ask 456 00:22:54,740 --> 00:22:57,740 S2: a few questions. Um, so your stay at home mom, 457 00:22:57,740 --> 00:23:00,660 S2: he's working. Does he have access to a retirement plan? 458 00:23:01,420 --> 00:23:05,340 S5: Yes. He contributes to his retirement plan through his work. 459 00:23:05,380 --> 00:23:07,340 S2: Okay. And do you know what percent of his income 460 00:23:07,340 --> 00:23:08,179 S2: he's putting in? 461 00:23:08,660 --> 00:23:11,940 S5: Um, I think it's the max, um, that they allow, 462 00:23:11,940 --> 00:23:14,340 S5: but I'm not 100% sure what that is. 463 00:23:14,380 --> 00:23:18,100 S2: Okay. Yeah. So you might want to check, uh, you know, that, um, 464 00:23:18,619 --> 00:23:21,979 S2: because the the max contribution of your under 50, the 465 00:23:21,980 --> 00:23:28,810 S2: employee portion is 23,500. We generally recommend putting 10 to 15% 466 00:23:28,810 --> 00:23:31,850 S2: of your income in. And then do you know if 467 00:23:31,850 --> 00:23:33,090 S2: they offer any matching? 468 00:23:35,410 --> 00:23:36,530 S5: I think they do. 469 00:23:36,770 --> 00:23:38,890 S2: Okay. That's great. So you want at least take full 470 00:23:38,890 --> 00:23:41,650 S2: advantage of the matching. That's free money. But then he 471 00:23:41,650 --> 00:23:44,000 S2: probably wants to get above that and do that 10 472 00:23:44,000 --> 00:23:46,730 S2: to 15%. Now are you all putting anything else away 473 00:23:46,730 --> 00:23:48,929 S2: for retirement? I realize that's the at the heart of 474 00:23:48,930 --> 00:23:52,290 S2: your question, but just making sure I understand what's what's happening. 475 00:23:53,170 --> 00:23:56,770 S5: Um, no, not outside of his job. Um, I have 476 00:23:57,010 --> 00:23:59,929 S5: an account that I had with my previous job, but 477 00:23:59,930 --> 00:24:02,290 S5: I haven't been contributing for a couple of years. 478 00:24:02,330 --> 00:24:03,050 S6: All right. Is that a. 479 00:24:03,050 --> 00:24:07,570 S2: 401 K with the previous jobs plan administrator or something else? 480 00:24:08,290 --> 00:24:10,970 S5: Yeah, I think it is. Um, that or an IRA. 481 00:24:11,010 --> 00:24:11,770 S5: I'm not sure. 482 00:24:11,930 --> 00:24:12,410 S6: Okay. 483 00:24:12,609 --> 00:24:14,410 S2: Yeah. So you're not sure if you rolled it out 484 00:24:14,410 --> 00:24:15,610 S2: or if it's still there? 485 00:24:16,210 --> 00:24:17,450 S5: Yeah, I'm not sure. 486 00:24:17,490 --> 00:24:19,850 S6: Okay. Yeah, I would want you to check on that. 487 00:24:19,890 --> 00:24:21,490 S2: How much do you think you had in there last 488 00:24:21,490 --> 00:24:22,250 S2: time you looked? 489 00:24:23,290 --> 00:24:24,770 S5: It's like 8000. 490 00:24:24,850 --> 00:24:27,690 S2: Okay. Yeah. good. Well, that could be the money that 491 00:24:27,690 --> 00:24:30,650 S2: we end up, you know, starting you to contribute to 492 00:24:30,690 --> 00:24:33,609 S2: alongside what your husband's doing. So I think that could 493 00:24:33,609 --> 00:24:36,129 S2: be great. Now, just in terms of a few other 494 00:24:36,210 --> 00:24:38,450 S2: kind of key pieces, do you guys have any consumer 495 00:24:38,450 --> 00:24:40,850 S2: debt like high interest credit card debt or anything like 496 00:24:40,850 --> 00:24:42,490 S2: that that you're carrying month to month? 497 00:24:43,369 --> 00:24:48,130 S5: Um, well, we have just like, vehicles, um, and then 498 00:24:49,050 --> 00:24:50,530 S5: some student loans. 499 00:24:50,650 --> 00:24:53,810 S2: Okay, cool. And on the student loans, do you think 500 00:24:53,850 --> 00:24:56,090 S2: you're on track to get those paid off in ten years? 501 00:24:56,090 --> 00:24:58,330 S2: Or do you think it could extend much further than that? 502 00:24:59,730 --> 00:25:01,330 S5: I think before ten years. 503 00:25:01,369 --> 00:25:03,850 S2: Okay, good. Yeah. So if you're on track with your 504 00:25:03,850 --> 00:25:06,010 S2: budget and you guys have really dialed into your budget, 505 00:25:06,010 --> 00:25:08,930 S2: you have a spending plan that balances. It's got some margin. 506 00:25:09,170 --> 00:25:12,250 S2: You've demonstrated you can stick to that and you're not 507 00:25:12,290 --> 00:25:14,770 S2: kind of going beyond that. And, you know, taking on debt, 508 00:25:14,770 --> 00:25:16,970 S2: which I don't hear that you have any credit card debt. 509 00:25:16,970 --> 00:25:18,810 S2: And if you're on track to pay your student loans 510 00:25:18,810 --> 00:25:22,290 S2: off in ten years, obviously we'll get those cars paid off. 511 00:25:22,290 --> 00:25:24,639 S2: And if you could keep making that payment to yourself 512 00:25:24,640 --> 00:25:26,920 S2: for any of those cars you pay off, and then 513 00:25:26,920 --> 00:25:29,280 S2: you've got something when you need to replace one at 514 00:25:29,320 --> 00:25:32,000 S2: least to get you started. I think that would be great. 515 00:25:32,000 --> 00:25:34,439 S2: And then lastly, do you have an emergency fund of 516 00:25:34,440 --> 00:25:35,560 S2: liquid savings? 517 00:25:37,000 --> 00:25:37,600 S5: We do. 518 00:25:37,800 --> 00:25:39,920 S2: Okay. How many months worth of expenses do you think 519 00:25:39,960 --> 00:25:40,399 S2: you have? 520 00:25:43,160 --> 00:25:46,120 S5: Probably like 3 to 4 months or so. Yeah. That's 521 00:25:46,119 --> 00:25:47,360 S5: awesome around there. 522 00:25:47,400 --> 00:25:50,000 S2: Okay. So I like this a lot. And I think, 523 00:25:50,040 --> 00:25:51,959 S2: you know, the very first thing you want to do 524 00:25:51,960 --> 00:25:54,600 S2: is max out that free money in the match. And 525 00:25:54,600 --> 00:25:56,400 S2: then I think if you could set a goal to 526 00:25:56,440 --> 00:26:00,920 S2: get his retirement plan contributions to 10%, and then if 527 00:26:00,960 --> 00:26:05,040 S2: you could open up a Roth IRA, which you can 528 00:26:05,040 --> 00:26:08,520 S2: do as a spouse without any earned income, and then 529 00:26:08,720 --> 00:26:11,880 S2: I would roll that retirement plan that you have that 530 00:26:11,880 --> 00:26:14,680 S2: you think has around 8000 out to a traditional IRA. 531 00:26:15,000 --> 00:26:17,520 S2: And then if you all have the ability to cover it, 532 00:26:17,520 --> 00:26:20,160 S2: I'd go ahead and convert that to a Roth. Now 533 00:26:20,160 --> 00:26:23,669 S2: that's going to add $8,000 to your taxable income for 534 00:26:23,670 --> 00:26:25,629 S2: the year, you need to be able to write that check. 535 00:26:25,710 --> 00:26:28,030 S2: If you can't, don't do it. But if you can, 536 00:26:28,070 --> 00:26:30,590 S2: I'd love to get that money into a Roth. What 537 00:26:30,590 --> 00:26:32,190 S2: is your age? If you don't mind me asking? 538 00:26:33,310 --> 00:26:34,310 S5: I'm 31. 539 00:26:34,350 --> 00:26:36,790 S2: Okay, yeah. So you got tons of time here. If 540 00:26:36,790 --> 00:26:39,070 S2: the Lord tarries and, you know, he he you're in 541 00:26:39,070 --> 00:26:41,189 S2: good health. I mean, you need, uh, we need to 542 00:26:41,190 --> 00:26:44,990 S2: be thinking three, four, five decades down the road in 543 00:26:45,030 --> 00:26:47,630 S2: terms of, you know, when this money will be accessed. 544 00:26:47,630 --> 00:26:50,230 S2: And if you could have tax free growth for all 545 00:26:50,230 --> 00:26:52,750 S2: of those years in a Roth IRA, that'd be amazing. 546 00:26:52,869 --> 00:26:55,710 S2: And then you'd be able to start adding to that. So, 547 00:26:55,869 --> 00:26:59,909 S2: you know, with a, you know, a Roth IRA, um, 548 00:26:59,950 --> 00:27:03,990 S2: you know, you would have the ability to put for 20, 25, uh, 549 00:27:03,990 --> 00:27:07,870 S2: $7,000 in there. And so then your your husband would 550 00:27:07,869 --> 00:27:12,150 S2: have the tax deferred 401 K growing, which is great. Um, 551 00:27:12,230 --> 00:27:15,030 S2: and then you'd have the tax free Roth IRA growing. 552 00:27:15,070 --> 00:27:17,230 S2: And I think the combination of the two of those 553 00:27:17,390 --> 00:27:19,469 S2: would get you guys going, you know, in a really 554 00:27:19,470 --> 00:27:22,179 S2: solid direction so that you're going to have quite a 555 00:27:22,180 --> 00:27:24,300 S2: nest egg when you get to that season of life. 556 00:27:26,140 --> 00:27:30,100 S5: Okay, awesome. That sounds good. Um, yeah, that was the 557 00:27:30,100 --> 00:27:33,220 S5: main question. If we should be also contributing like outside 558 00:27:33,220 --> 00:27:34,260 S5: of his job. So. 559 00:27:34,300 --> 00:27:36,540 S2: Yeah. And I think that the opportunity to get that 560 00:27:36,540 --> 00:27:39,300 S2: tax free Roth going, whether it's in your name or his, 561 00:27:39,340 --> 00:27:40,699 S2: I like I kind of like the idea of it 562 00:27:40,700 --> 00:27:43,340 S2: being in yours since he's got the 401 K, I 563 00:27:43,340 --> 00:27:45,380 S2: think that'd be great. And so then you got both 564 00:27:45,380 --> 00:27:47,660 S2: of these working for you, and you could open that 565 00:27:47,660 --> 00:27:51,100 S2: at at Schwab and use like the Schwab Intelligent Portfolios, 566 00:27:51,100 --> 00:27:54,060 S2: which is just a really easy kind of robo advisor 567 00:27:54,260 --> 00:27:57,899 S2: solution where it would use indexes like exchange traded funds. 568 00:27:57,900 --> 00:28:00,260 S2: So you'd capture kind of the big broad moves of 569 00:28:00,260 --> 00:28:02,740 S2: the market, and you wouldn't have to pick the individual 570 00:28:02,740 --> 00:28:06,820 S2: stocks or mutual funds. Again, it's called the Schwab Intelligent Portfolios. 571 00:28:06,820 --> 00:28:09,060 S2: That'd be a real easy way to go. But I 572 00:28:09,060 --> 00:28:11,220 S2: think I think you guys are on the right track here. 573 00:28:11,220 --> 00:28:14,220 S2: It sounds like you're making some great decisions. Uh, thanks 574 00:28:14,220 --> 00:28:17,139 S2: for your call, Monica. Call anytime. Let's go to Vermont. Kent, 575 00:28:17,180 --> 00:28:17,859 S2: how can I help? 576 00:28:18,220 --> 00:28:23,580 S7: Hi, Rob. Thanks for taking my call. Um, we, my 577 00:28:23,580 --> 00:28:26,260 S7: wife and I are retired, and we have an older 578 00:28:26,260 --> 00:28:28,940 S7: friend who would like to sell us his second home. 579 00:28:29,580 --> 00:28:32,820 S7: We would like to buy it. The problem is that 580 00:28:33,180 --> 00:28:36,980 S7: most of our assets are invested and would result in 581 00:28:36,980 --> 00:28:42,460 S7: high capital gains and income, and that would trigger Irma 582 00:28:42,460 --> 00:28:49,060 S7: and higher Medicare premiums. So he's proposed that, um, we 583 00:28:49,060 --> 00:28:53,500 S7: pay perhaps 50% of it, and then he would hold 584 00:28:53,500 --> 00:28:56,820 S7: a note for one year, and we would pay the 585 00:28:56,820 --> 00:29:01,820 S7: rest of it a year later. Um, and that would 586 00:29:01,820 --> 00:29:07,660 S7: help keep us under those tax thresholds. But his biggest concern, 587 00:29:07,660 --> 00:29:13,100 S7: and I understand it, is that what if something happened 588 00:29:13,100 --> 00:29:16,219 S7: to either him or to us and, you know, we 589 00:29:16,260 --> 00:29:20,290 S7: died unexpectedly? How can we be sure that we have 590 00:29:20,290 --> 00:29:24,170 S7: a legal protection for for both of us? I just 591 00:29:24,170 --> 00:29:26,930 S7: don't know which way to turn. If I didn't know 592 00:29:26,930 --> 00:29:29,490 S7: if you had any thoughts about how we would approach 593 00:29:29,490 --> 00:29:30,370 S7: that whole thing. 594 00:29:30,730 --> 00:29:34,450 S2: Yeah, yeah. Got it. Um, and this is somebody you, 595 00:29:34,450 --> 00:29:37,130 S2: you know pretty well you've got a long term relationship. 596 00:29:37,490 --> 00:29:39,290 S7: Yes. We do. We do. 597 00:29:39,490 --> 00:29:40,410 S2: Okay. Yeah. 598 00:29:40,610 --> 00:29:42,170 S7: A friend as much as anything. 599 00:29:42,490 --> 00:29:45,209 S2: Yeah. Awesome. Yeah. So I think the key here is, 600 00:29:45,250 --> 00:29:47,729 S2: you know, with seller financing essentially means instead of a 601 00:29:47,730 --> 00:29:50,330 S2: bank loan, the seller becomes the lender. You're going to 602 00:29:50,330 --> 00:29:52,530 S2: then make the monthly payments to him under the terms 603 00:29:52,530 --> 00:29:55,290 S2: set in a promissory note, which would be key regardless 604 00:29:55,290 --> 00:29:57,170 S2: of whether your friends and needs to be all legal 605 00:29:57,170 --> 00:30:00,810 S2: and and clear and above board. And then the mortgage 606 00:30:00,810 --> 00:30:03,730 S2: or the deed would be recorded with the county, and 607 00:30:03,730 --> 00:30:06,330 S2: that gives the seller a legal claim to the property 608 00:30:06,330 --> 00:30:09,730 S2: until it's paid off. So from in terms of protection 609 00:30:09,730 --> 00:30:13,050 S2: for the buyer, you you're, you want to make sure 610 00:30:13,050 --> 00:30:17,640 S2: the property deed is properly transferred into your name with 611 00:30:17,640 --> 00:30:21,160 S2: the seller's lien recorded that way. You're the legal owner. 612 00:30:21,160 --> 00:30:23,760 S2: As long as the payments are made for the seller. 613 00:30:23,760 --> 00:30:26,880 S2: Recording the lien protects his right to take the property 614 00:30:26,880 --> 00:30:29,840 S2: back if the payment stops. And then what happens if 615 00:30:29,840 --> 00:30:32,280 S2: someone dies? Well, if the seller dies, the note becomes 616 00:30:32,280 --> 00:30:35,320 S2: part of his estate and payments would continue. And if 617 00:30:35,360 --> 00:30:38,920 S2: you die as the buyer, your surviving spouse or the 618 00:30:38,920 --> 00:30:42,440 S2: estate is then still responsible for the payments, just like 619 00:30:42,440 --> 00:30:45,120 S2: a bank loan. So you need the promissory note with 620 00:30:45,120 --> 00:30:47,440 S2: the payment terms, interest rate and due dates. You need 621 00:30:47,440 --> 00:30:51,080 S2: that recorded mortgage or deed securing the seller's interest. And 622 00:30:51,080 --> 00:30:53,880 S2: then you need clear terms for what happens upon death, 623 00:30:54,040 --> 00:30:57,040 S2: default or prepayment. Stay on the line. We'll talk a 624 00:30:57,040 --> 00:31:05,800 S2: bit more after the break. Thanks for joining us today 625 00:31:05,800 --> 00:31:08,360 S2: on Faith and Finance Live here in our final segment 626 00:31:08,360 --> 00:31:10,880 S2: of the broadcast today, let me remind you, our team 627 00:31:10,880 --> 00:31:13,360 S2: is not here, so don't call in. But we lined 628 00:31:13,360 --> 00:31:16,070 S2: up some great questions in advance. We'll get to those 629 00:31:16,070 --> 00:31:19,630 S2: in just a moment. Before we do, let me remind you, 630 00:31:19,630 --> 00:31:22,630 S2: if you haven't downloaded the Faith fi app, we'd love 631 00:31:22,630 --> 00:31:25,550 S2: for you to check it out. It's got three sections 632 00:31:25,550 --> 00:31:27,990 S2: in it. The first is the money management system based 633 00:31:27,990 --> 00:31:32,390 S2: on Larry Burkett's digital envelope system. It helps you manage 634 00:31:32,390 --> 00:31:34,630 S2: God's money in a way where you know exactly what's 635 00:31:34,670 --> 00:31:37,870 S2: left in each envelope at any point during the month. 636 00:31:37,910 --> 00:31:40,630 S2: There's also our learn tab, where you can access the 637 00:31:40,630 --> 00:31:44,390 S2: best content in biblical finance to grow in your understanding 638 00:31:44,390 --> 00:31:47,430 S2: of God's way of handling money and our community, where 639 00:31:47,430 --> 00:31:51,070 S2: you can post questions, get comments and ideas from other 640 00:31:51,070 --> 00:31:54,790 S2: stewards on the journey. So download it today on our website. 641 00:31:54,790 --> 00:31:58,910 S2: Faith 5.com. Just click app. All right back to the 642 00:31:58,910 --> 00:32:02,510 S2: phones we go. Before the break we were talking to Kent. Uh, 643 00:32:02,550 --> 00:32:05,510 S2: he and his wife are retired. They have a friend 644 00:32:05,510 --> 00:32:07,710 S2: that wants to sell them his home. It would be 645 00:32:07,710 --> 00:32:10,190 S2: a second home for them. He's offered to hold the 646 00:32:10,190 --> 00:32:12,750 S2: note so they don't have to realize a bunch of 647 00:32:12,790 --> 00:32:16,590 S2: capital gains by selling stocks that are appreciated and don't 648 00:32:16,590 --> 00:32:20,150 S2: want to trigger any kind of Irma on their Medicare 649 00:32:20,150 --> 00:32:24,910 S2: premiums by having additional, uh, you know, capital gains. And 650 00:32:24,910 --> 00:32:27,670 S2: therefore the seller has agreed to hold a note. He's 651 00:32:27,670 --> 00:32:30,150 S2: just wanting to be sure he knows how to protect 652 00:32:30,150 --> 00:32:34,230 S2: both of them in case someone dies during the process 653 00:32:34,230 --> 00:32:36,510 S2: of the payback. But give me your thoughts, Kent. On 654 00:32:36,510 --> 00:32:38,710 S2: on what I shared in terms of the steps here. 655 00:32:39,630 --> 00:32:46,030 S7: I think that seems, um, quite logical. Who would who 656 00:32:46,030 --> 00:32:48,950 S7: would we turn to to write up the promissory note 657 00:32:48,950 --> 00:32:56,070 S7: with the attorney that does the the mortgage or deed would, um, 658 00:32:56,470 --> 00:33:00,550 S7: wouldn't really. Well, I guess it would be a mortgage deed, but, um, yeah. 659 00:33:00,990 --> 00:33:03,030 S2: Yeah, a real estate attorney is going to be the 660 00:33:03,030 --> 00:33:06,870 S2: best professional to draft or review a promissory note tied 661 00:33:06,870 --> 00:33:10,190 S2: to the mortgage. Some title companies also prepare them as 662 00:33:10,190 --> 00:33:12,910 S2: a part of a closing. But legal, you know, a 663 00:33:13,020 --> 00:33:16,340 S2: legal review is, is is recommended. And that's going to 664 00:33:16,380 --> 00:33:19,140 S2: set out the terms of the loan. Um, you know, 665 00:33:19,180 --> 00:33:22,020 S2: it it also needs to be secured by a deed 666 00:33:22,060 --> 00:33:25,140 S2: of trust or a mortgage recorded with the county. Um, 667 00:33:25,820 --> 00:33:28,140 S2: so you don't really want to DIY that? 668 00:33:28,260 --> 00:33:28,620 S7: Okay. 669 00:33:28,660 --> 00:33:30,980 S2: Yeah. All right. All right. I think this sounds like 670 00:33:30,980 --> 00:33:32,140 S2: a good plan. Yeah. 671 00:33:32,540 --> 00:33:36,500 S7: Well, I appreciate your input on that. And, uh, I 672 00:33:36,660 --> 00:33:39,340 S7: it's kind of the way I was thinking, but, um, 673 00:33:40,180 --> 00:33:41,860 S7: I haven't done this before, so. 674 00:33:42,340 --> 00:33:44,420 S2: Yeah, I totally get it. And that's where the the 675 00:33:44,460 --> 00:33:47,060 S2: attorney can be helpful. And probably even running this by your, 676 00:33:47,100 --> 00:33:49,780 S2: your CPA if you have one. So, uh, Kent, thanks 677 00:33:49,780 --> 00:33:52,060 S2: for your call, my friend. God bless you. Uh, let's 678 00:33:52,060 --> 00:33:54,660 S2: go to, uh, Missouri. Mike, how can I help? 679 00:33:55,660 --> 00:33:58,100 S8: Hello. This is this is Mike. Yeah. Just a quick 680 00:33:58,100 --> 00:34:00,260 S8: note for Kent. That's how we bought this place in 681 00:34:00,260 --> 00:34:04,300 S8: 1999 with a, uh, from the owner. And, uh, it 682 00:34:04,300 --> 00:34:07,980 S8: was a very simple process, uh, getting a real estate attorney, 683 00:34:07,980 --> 00:34:09,899 S8: and it was all seamless, so. 684 00:34:09,940 --> 00:34:13,170 S2: Oh. That's great. Well, you that's you're the perfect next caller. 685 00:34:13,170 --> 00:34:15,850 S2: Thanks for affirming that, Mike. Hey, how can I help you? 686 00:34:15,890 --> 00:34:19,850 S8: Worked out great. So, um, uh, my question is about 687 00:34:19,890 --> 00:34:24,490 S8: reverse mortgages, and, uh, I was wondering about your thoughts 688 00:34:24,489 --> 00:34:30,210 S8: on that. Um, we, uh, we refinanced the place in, um, 2020, 689 00:34:30,250 --> 00:34:35,250 S8: May of 2020, and we had less than about, um, well, 690 00:34:35,250 --> 00:34:38,569 S8: we needed ten years to get the loan or have 691 00:34:38,570 --> 00:34:41,489 S8: the loan for ten years. That was a different kind 692 00:34:41,530 --> 00:34:43,650 S8: of thing. But anyway, we got one for ten years. 693 00:34:43,969 --> 00:34:47,570 S8: We've got 40 to $50,000 left to pay on it. 694 00:34:47,610 --> 00:34:53,690 S8: When we did have the place refinanced, they, uh, they did, um, 695 00:34:53,730 --> 00:34:55,410 S8: you know, they came out and inspected and all that. 696 00:34:55,410 --> 00:34:59,969 S8: And it was, um, it was evaluated at about $350,000 697 00:34:59,969 --> 00:35:04,690 S8: at 2020. So, um, probably more so we owe probably 698 00:35:04,690 --> 00:35:08,290 S8: between 40 to 50, um, through a life event we 699 00:35:08,290 --> 00:35:11,240 S8: do not have, uh, we had a pretty good nest 700 00:35:11,239 --> 00:35:13,920 S8: egg built up, but that went through our 401 K, 701 00:35:13,960 --> 00:35:18,319 S8: my IRA, um, and the savings. Luckily, I had a 702 00:35:18,320 --> 00:35:22,360 S8: pension that was grandfathered in, so that that kind of helped. Um, 703 00:35:22,960 --> 00:35:26,960 S8: but basically, we're living off of Social Security, and there's 704 00:35:26,960 --> 00:35:32,120 S8: so many different people out there talking about, uh, like, um, 705 00:35:32,160 --> 00:35:34,520 S8: somebody on the radio won't mention the name, saying it's 706 00:35:34,520 --> 00:35:36,880 S8: a very bad idea to do a reverse mortgage. 707 00:35:37,120 --> 00:35:39,960 S2: I have a sneaking suspicion I know who you're talking about. 708 00:35:41,400 --> 00:35:43,640 S8: Yeah, I just I just reviewed it. A friend of 709 00:35:43,640 --> 00:35:45,520 S8: mine said, uh, we were just talking it over with him. 710 00:35:45,520 --> 00:35:47,040 S8: He said, oh, no, you don't want to do that. 711 00:35:47,040 --> 00:35:49,239 S8: And he gave me the link, and the link went 712 00:35:49,239 --> 00:35:51,319 S8: right to this person. And it's like, you know, you're 713 00:35:51,320 --> 00:35:53,440 S8: very not a smart thing to do. 714 00:35:54,000 --> 00:35:57,160 S2: Um, yeah. I mean, what is the biggest. And I'll 715 00:35:57,160 --> 00:35:59,800 S2: give you my opinion here, but what's the biggest concern 716 00:35:59,800 --> 00:36:02,080 S2: that has stood out to you as you've thought about 717 00:36:02,080 --> 00:36:04,520 S2: it or as you've listened to the, you know, the 718 00:36:04,520 --> 00:36:06,800 S2: the video you were just referring to or your friend? 719 00:36:06,840 --> 00:36:09,150 S2: I mean, where is the concern around. 720 00:36:09,710 --> 00:36:13,910 S8: That we will be kicked out of the house if, um, 721 00:36:13,950 --> 00:36:17,910 S8: you know, if something happens where we can't make payments. Uh, 722 00:36:17,950 --> 00:36:22,150 S8: but from what I understand, FHA is a guarantee on that. Um, 723 00:36:22,510 --> 00:36:26,030 S8: like I said, we do, uh, have our Social Security. 724 00:36:26,030 --> 00:36:29,230 S8: I have a Social security, uh, a decent check, and 725 00:36:29,230 --> 00:36:32,830 S8: my wife does also, she's working part time. I still 726 00:36:32,830 --> 00:36:35,390 S8: do a little part time work bringing in a little 727 00:36:35,390 --> 00:36:39,750 S8: extra cash for the sawmill. So, um, but as far 728 00:36:39,750 --> 00:36:43,149 S8: as everything that we had before, that's gone. So we 729 00:36:43,150 --> 00:36:46,989 S8: almost live paycheck from paycheck to, you know, security, uh, 730 00:36:46,989 --> 00:36:49,310 S8: social security check. The social security check. 731 00:36:49,469 --> 00:36:52,310 S2: Yeah. Yeah. Well, I mean, you know, that is one 732 00:36:52,310 --> 00:36:55,350 S2: of the misnomers, um, you know, about the home equity 733 00:36:55,350 --> 00:36:58,630 S2: conversion mortgage, which is different than the, you know, equity 734 00:36:58,630 --> 00:37:01,830 S2: share or some of the reverse mortgages of decades ago 735 00:37:01,830 --> 00:37:04,790 S2: that were a mess. I would have never recommended them. But, 736 00:37:04,910 --> 00:37:07,870 S2: you know, the reverse mortgage of today, the Hecm you 737 00:37:07,910 --> 00:37:10,750 S2: still own the home. The lender has a lien but 738 00:37:10,750 --> 00:37:13,750 S2: not ownership, so you retain. You remain on the title 739 00:37:13,750 --> 00:37:17,230 S2: just like a forward mortgage. When could you lose the home? Well, 740 00:37:17,230 --> 00:37:19,550 S2: if you don't pay the property taxes or the homeowner's 741 00:37:19,550 --> 00:37:23,310 S2: insurance or, you know, basic maintenance. I mean, if those 742 00:37:23,310 --> 00:37:26,990 S2: aren't paid, the loan could default and foreclose if possible, 743 00:37:26,989 --> 00:37:29,589 S2: but that would be true of any mortgage. Uh, you 744 00:37:29,590 --> 00:37:32,310 S2: have to live in the home as your primary residence. Uh, 745 00:37:32,310 --> 00:37:37,230 S2: moving out permanently triggers repayment, but you and your spouse 746 00:37:37,230 --> 00:37:38,950 S2: can live there for the rest of your life. As 747 00:37:38,950 --> 00:37:41,470 S2: long as you keep the property taxes in the homeowner's 748 00:37:41,469 --> 00:37:46,069 S2: insurance paid. Uh, you maintain the home. Now, you know, 749 00:37:46,110 --> 00:37:49,790 S2: what are the downsides? Uh, you know, potentially to a 750 00:37:49,790 --> 00:37:53,430 S2: reverse mortgage. Um, you know, well, I mean, there there 751 00:37:53,430 --> 00:37:56,630 S2: are fees and expenses, and I would say that the 752 00:37:56,630 --> 00:37:59,790 S2: the fees and the interest are higher than on traditional 753 00:37:59,790 --> 00:38:03,070 S2: loans by maybe a half point over what you would see, 754 00:38:03,350 --> 00:38:06,029 S2: you know, on a traditional loan. Uh, you do have 755 00:38:06,100 --> 00:38:09,899 S2: that one time 2% charge for FHA on the front end, 756 00:38:09,900 --> 00:38:12,739 S2: but that comes with a pretty significant benefit. And that 757 00:38:12,739 --> 00:38:16,779 S2: is that that is a non-recourse loan. And so if 758 00:38:16,780 --> 00:38:19,500 S2: for any reason they paid out, let's say you didn't 759 00:38:19,540 --> 00:38:21,259 S2: take it as a line of credit or just to 760 00:38:21,300 --> 00:38:23,660 S2: pay off the existing mortgage, but you took it as 761 00:38:23,660 --> 00:38:25,819 S2: an income stream because they'll do that. They'll give you 762 00:38:25,820 --> 00:38:27,900 S2: a check for life. And let's say you live a 763 00:38:27,900 --> 00:38:30,540 S2: really long time and you're just you happen to have 764 00:38:30,540 --> 00:38:34,540 S2: that home that depreciates instead of appreciates. And eventually they 765 00:38:34,540 --> 00:38:37,020 S2: pay out more than the home is worth. Well, that 2% 766 00:38:37,020 --> 00:38:40,700 S2: feed FHA means the only thing that the mortgage company 767 00:38:40,700 --> 00:38:44,500 S2: would ever get is the value of the home. Uh, 768 00:38:44,620 --> 00:38:48,980 S2: and if there's ever a deficient balance, FHA has to 769 00:38:48,980 --> 00:38:51,380 S2: step in and pay it. So that's a pretty significant 770 00:38:51,380 --> 00:38:54,700 S2: benefit there. That's not true of a forward mortgage. Um, 771 00:38:55,219 --> 00:38:57,980 S2: and so the loan balance is going to grow over time. 772 00:38:58,260 --> 00:39:00,339 S2: But other than that, you know, we've got a lot 773 00:39:00,340 --> 00:39:02,620 S2: of people in this season of life that just haven't 774 00:39:02,620 --> 00:39:05,489 S2: saved enough or they still have a mortgage and it's 775 00:39:05,489 --> 00:39:09,089 S2: their biggest expense. And so whether they come in and 776 00:39:09,090 --> 00:39:12,690 S2: just pay off the existing mortgage and eliminate that payment, 777 00:39:12,690 --> 00:39:15,129 S2: because with reverse you can pay it, but you don't 778 00:39:15,130 --> 00:39:17,489 S2: ever have to make a payment or you get an 779 00:39:17,489 --> 00:39:19,890 S2: income stream, or what most people do is just get 780 00:39:19,890 --> 00:39:21,930 S2: a line of credit. And by the way, that line 781 00:39:21,969 --> 00:39:24,930 S2: of credit increases every year because the homes appreciating and 782 00:39:24,930 --> 00:39:28,010 S2: you're getting older. And so they look at that every year. 783 00:39:28,210 --> 00:39:30,530 S2: And then you just have access to tax free money, 784 00:39:30,530 --> 00:39:34,250 S2: because it's after tax dollars that you can use to 785 00:39:34,290 --> 00:39:37,170 S2: support your lifestyle. You never have to make a payment. 786 00:39:37,170 --> 00:39:39,290 S2: And when you die, your heirs probably don't want the 787 00:39:39,290 --> 00:39:41,489 S2: house anyway. And so just like if you had a 788 00:39:41,489 --> 00:39:44,410 S2: forward mortgage, the home is sold, the mortgage is paid off, 789 00:39:44,730 --> 00:39:47,290 S2: and the balance is then available to give away or 790 00:39:47,290 --> 00:39:50,649 S2: to give as an inheritance. And it's a pretty good 791 00:39:50,650 --> 00:39:55,290 S2: deal in the sense that it's it's most people's major asset. 792 00:39:55,290 --> 00:39:57,690 S2: And if they don't have other assets or they would 793 00:39:57,690 --> 00:40:01,170 S2: just rather not touch them because they're taxable, or they'd 794 00:40:01,170 --> 00:40:04,359 S2: rather let them grow like in a retirement plan, and 795 00:40:04,360 --> 00:40:07,480 S2: they can take from the the home equity. And they 796 00:40:07,480 --> 00:40:10,280 S2: don't have a conviction from the Lord to be debt free. 797 00:40:10,280 --> 00:40:13,120 S2: And they're comfortable with that. Then it can be a 798 00:40:13,120 --> 00:40:16,200 S2: planning tool. Is it for everybody? Absolutely not. Is it 799 00:40:16,200 --> 00:40:19,359 S2: a little more expensive? Yes. But is it something that's 800 00:40:19,400 --> 00:40:23,920 S2: often overlooked and misunderstood? Absolutely. Does that make sense? 801 00:40:24,520 --> 00:40:27,560 S8: It does make sense. Uh, one other one other thing 802 00:40:27,560 --> 00:40:30,640 S8: with the property. The house, though the house is sitting 803 00:40:30,640 --> 00:40:34,560 S8: on 162 acres, and I think that was one of 804 00:40:34,560 --> 00:40:40,080 S8: the things that they, they figured in onto the, uh, the, um, um, 805 00:40:40,280 --> 00:40:44,759 S8: value of the house, uh, because it's you can't they're 806 00:40:44,760 --> 00:40:47,239 S8: not making any more land. So that's considerable, you know, 807 00:40:47,280 --> 00:40:49,920 S8: that is growing more and more. But the house is 808 00:40:49,920 --> 00:40:52,680 S8: on the property and it's all, you know, maintained. 809 00:40:53,280 --> 00:40:56,439 S2: Yeah. Well, uh, you know, in, in terms of that, 810 00:40:56,480 --> 00:41:00,879 S2: having a large acreage estate, um, a reverse mortgage is 811 00:41:00,880 --> 00:41:04,799 S2: designed for a primary residence. Um, and so, you know, 812 00:41:04,840 --> 00:41:08,360 S2: usually FHA is going to limit that to the property 813 00:41:08,360 --> 00:41:10,760 S2: that they're, you know, including in this to the home 814 00:41:10,760 --> 00:41:13,600 S2: and a reasonable amount of land, which is, you know, 815 00:41:13,640 --> 00:41:17,560 S2: usually less than ten acres. So, um, you know, you 816 00:41:17,560 --> 00:41:19,920 S2: would just have to work through that with the mortgage company. 817 00:41:19,920 --> 00:41:21,799 S2: But here's what I would do. I'd reach out to 818 00:41:21,840 --> 00:41:25,239 S2: our friends at Movement Mortgage. They're the best in this. Uh, 819 00:41:25,239 --> 00:41:28,400 S2: Harlan Eckel, who joins me on the program regularly, uh, 820 00:41:28,400 --> 00:41:30,919 S2: is probably one of the best in the country in 821 00:41:30,920 --> 00:41:33,279 S2: terms of understanding these. And just let him answer your 822 00:41:33,280 --> 00:41:37,799 S2: questions and run some scenarios. Uh, movement. Com is the 823 00:41:37,800 --> 00:41:41,600 S2: place to go. Movement. And then, Mike, I'm going to 824 00:41:41,600 --> 00:41:45,520 S2: send you a copy of a book called Understanding Reverse 825 00:41:45,680 --> 00:41:47,480 S2: that I think will just give you all the nuts 826 00:41:47,480 --> 00:41:49,600 S2: and bolts and really help you think through this fully, 827 00:41:49,600 --> 00:41:51,280 S2: because the last thing I'd want you to do is 828 00:41:51,320 --> 00:41:53,359 S2: rush into this or do something that's not for you. 829 00:41:53,360 --> 00:41:56,360 S2: And again, it's not for everyone, but it could be, uh, 830 00:41:56,360 --> 00:41:59,719 S2: a great option for you. And so just getting some education, 831 00:41:59,719 --> 00:42:02,029 S2: I think is your next step. So stay on the line. 832 00:42:02,030 --> 00:42:03,670 S2: We'll get this book out to you. God bless you, 833 00:42:03,670 --> 00:42:06,029 S2: my friend. Thanks for calling today. Well, we're about out 834 00:42:06,070 --> 00:42:08,669 S2: of time today. Before we go, let me remind us 835 00:42:08,670 --> 00:42:10,870 S2: why we do what we do here on this program. 836 00:42:10,870 --> 00:42:14,430 S2: Every day we gather for faith and finance. Live because 837 00:42:14,430 --> 00:42:18,230 S2: we recognize we all have a high calling. We're money 838 00:42:18,230 --> 00:42:21,830 S2: managers for the King of kings, which means we're to 839 00:42:21,870 --> 00:42:27,150 S2: be found faithful as we manage God's resources, faithfulness, obedience 840 00:42:27,150 --> 00:42:30,589 S2: over a long period of time, applying the wisdom of 841 00:42:30,590 --> 00:42:33,270 S2: God's Word to every area of our lives, and that 842 00:42:33,270 --> 00:42:35,990 S2: includes our finances. So thanks for being here today. Thanks 843 00:42:35,989 --> 00:42:39,270 S2: for calling and for writing and for your emails. We 844 00:42:39,270 --> 00:42:41,509 S2: love to do what we do and serving you to 845 00:42:41,550 --> 00:42:44,630 S2: be wise stewards of God's money. I want to say 846 00:42:44,630 --> 00:42:47,589 S2: thanks to my team today Clara, Deb, Amy and Jim 847 00:42:47,590 --> 00:42:50,190 S2: couldn't do it without them. Faith and Finance Live is 848 00:42:50,190 --> 00:42:53,910 S2: a partnership between Faith Fi and Moody Radio. We'll see 849 00:42:53,910 --> 00:42:55,790 S2: you next time. God bless you. Bye bye.