1 00:00:03,040 --> 00:00:06,680 S1: Today's Faith and finance live is actually pre-recorded so our 2 00:00:06,680 --> 00:00:10,799 S1: phone lines are not open. With college costs soaring, families 3 00:00:10,800 --> 00:00:14,920 S1: are exploring every possible avenue. But one meaningful option doesn't 4 00:00:14,920 --> 00:00:19,639 S1: get nearly enough attention military service. Hi, I'm Rob West. 5 00:00:19,720 --> 00:00:23,000 S1: For students who feel led to serve, Military pathways can 6 00:00:23,000 --> 00:00:28,080 S1: provide full tuition, a monthly stipend, and unmatched leadership development. 7 00:00:28,120 --> 00:00:30,160 S1: Matt Bell is here today to walk us through how 8 00:00:30,160 --> 00:00:33,680 S1: these programs work. And we're prerecorded. So please hold your 9 00:00:33,680 --> 00:00:36,440 S1: calls until we're back in the studio. This is faith 10 00:00:36,440 --> 00:00:44,120 S1: and finance live. Biblical wisdom for your financial journey. Matt 11 00:00:44,120 --> 00:00:46,879 S1: Bell is the managing editor at Sound Mind Investing, one 12 00:00:46,880 --> 00:00:50,080 S1: of our valued underwriters, and he brings a personal connection 13 00:00:50,080 --> 00:00:53,440 S1: to today's topic. One of his sons is currently attending 14 00:00:53,440 --> 00:00:56,920 S1: the US Air Force Academy, and we're delighted to unpack 15 00:00:56,960 --> 00:00:59,480 S1: this amazing opportunity. Matt. Welcome back. 16 00:00:59,710 --> 00:01:01,830 S2: Thanks so much, Rob. Great to be with you again. 17 00:01:02,150 --> 00:01:05,630 S1: Matt. With college costs climbing faster than inflation, it's no 18 00:01:05,630 --> 00:01:09,270 S1: surprise that many parents feel overwhelmed. And you note in 19 00:01:09,270 --> 00:01:13,630 S1: your Sound Mind Investing article that military service is an 20 00:01:13,630 --> 00:01:17,750 S1: often missed but significant way to fund higher education. Tell 21 00:01:17,750 --> 00:01:18,670 S1: us why that is. 22 00:01:19,110 --> 00:01:21,750 S2: Yeah, Rob for the right student. And that's the key 23 00:01:21,750 --> 00:01:24,550 S2: for the right student. Someone who's willing to serve their 24 00:01:24,550 --> 00:01:28,350 S2: country and take on hard things. The military offers really 25 00:01:28,350 --> 00:01:32,229 S2: generous education benefits, and there are several pathways. These aren't 26 00:01:32,230 --> 00:01:35,190 S2: the only pathways, but several pathways include the five U.S. 27 00:01:35,190 --> 00:01:39,070 S2: service academies and also the ROTC, which stands for Reserve 28 00:01:39,069 --> 00:01:43,190 S2: Officers Training Corps. So, Rob, in addition to being able 29 00:01:43,190 --> 00:01:46,310 S2: to graduate from college debt free through these pathways, each 30 00:01:46,310 --> 00:01:50,430 S2: one provides some really incredible leadership training and other experiences 31 00:01:50,430 --> 00:01:53,230 S2: that you just can't get anywhere else. For example, our 32 00:01:53,230 --> 00:01:56,670 S2: son is right now debating for this summer's activities to 33 00:01:56,870 --> 00:01:59,940 S2: either go to jump school. That's learning how to parachute 34 00:01:59,940 --> 00:02:02,620 S2: or go to soaring school, which is about learning how 35 00:02:02,620 --> 00:02:07,620 S2: to fly a glider. So those are not typical college experiences. 36 00:02:07,900 --> 00:02:11,299 S1: That's incredible. Well, let's unpack each of these. I want 37 00:02:11,340 --> 00:02:14,620 S1: to start with the service academies. So what are they 38 00:02:14,660 --> 00:02:18,020 S1: and what should families understand about the application process? 39 00:02:18,419 --> 00:02:21,460 S2: Sure. So there are five US service academies. There's the 40 00:02:21,460 --> 00:02:25,260 S2: military academy otherwise known as West Point. There's the Air Force, 41 00:02:25,260 --> 00:02:29,060 S2: naval Coast Guard and merchant marine academies. At each one, 42 00:02:29,060 --> 00:02:31,740 S2: tuition and room and board are fully covered. Plus, there's 43 00:02:31,780 --> 00:02:34,940 S2: a monthly stipend for the students. Um, the academies are 44 00:02:34,940 --> 00:02:37,380 S2: tough to get into. They're very selective. Some have an 45 00:02:37,380 --> 00:02:40,540 S2: acceptance rate as low as 9 or 10%. So they're 46 00:02:40,540 --> 00:02:43,340 S2: looking for students that have a great academic record from 47 00:02:43,340 --> 00:02:47,860 S2: high school, strong scores on their Act or SAT. Fitness 48 00:02:47,900 --> 00:02:50,700 S2: A lot of these students have been varsity athletes in 49 00:02:50,700 --> 00:02:54,340 S2: high school. They're looking for leadership, not just participation in clubs, 50 00:02:54,340 --> 00:02:58,100 S2: but leadership roles and character, so they need some letters 51 00:02:58,100 --> 00:03:01,100 S2: of recommendation from people who can vouch for their character. 52 00:03:01,100 --> 00:03:03,419 S2: And Rob, as if all that's not enough, then they 53 00:03:03,419 --> 00:03:06,339 S2: need a nomination from a member of Congress or even 54 00:03:06,340 --> 00:03:09,260 S2: the Vice president of the United States. That's true for 55 00:03:09,260 --> 00:03:12,220 S2: all the academies except the Coast Guard. And that's quite 56 00:03:12,220 --> 00:03:13,740 S2: a process unto itself. 57 00:03:13,980 --> 00:03:16,780 S1: Yeah, that is a high bar. All right. Well, what 58 00:03:16,780 --> 00:03:19,620 S1: happens after students graduate from a service academy? 59 00:03:20,020 --> 00:03:23,260 S2: Sure. So they're committed to serving five years of active 60 00:03:23,260 --> 00:03:25,820 S2: duty plus three years in the reserve. So in that sense, 61 00:03:25,820 --> 00:03:28,220 S2: this is not a free education. They pay for it 62 00:03:28,220 --> 00:03:31,020 S2: with their service to their country. And then there's some 63 00:03:31,020 --> 00:03:33,540 S2: specialized tracks, like if you become a pilot, if you're 64 00:03:33,540 --> 00:03:36,780 S2: chosen for pilot training, that's a ten year commitment after 65 00:03:36,780 --> 00:03:39,580 S2: that training experience. But as I said, all of these 66 00:03:39,580 --> 00:03:44,100 S2: students graduate as officers. They gain invaluable leadership experience and 67 00:03:44,100 --> 00:03:46,780 S2: other types of experiences, and they have access to a 68 00:03:46,780 --> 00:03:48,500 S2: wide range of career options. 69 00:03:48,820 --> 00:03:51,820 S1: Hmm. That's really helpful. We've got about 90s left. Let's 70 00:03:51,820 --> 00:03:56,690 S1: do a flyover of the ROTC. How does that differ? 71 00:03:57,170 --> 00:04:00,570 S2: Sure. So it's offered on more than 1700 college campuses. 72 00:04:00,690 --> 00:04:03,890 S2: It's more of a traditional college experience in that these 73 00:04:03,890 --> 00:04:07,370 S2: students who are accepted into the ROTC, they're in uniform 74 00:04:07,370 --> 00:04:10,850 S2: a day, a week versus all the time at the academies. Um, 75 00:04:10,890 --> 00:04:14,890 S2: scholarships can cover tuition and room and board. They graduate 76 00:04:14,890 --> 00:04:18,130 S2: as officers at the exact same rank as at the academies, 77 00:04:18,130 --> 00:04:21,089 S2: and they have a little bit slightly lower service commitment 78 00:04:21,089 --> 00:04:23,730 S2: afterwards but still are committed to serving their country. 79 00:04:24,010 --> 00:04:26,610 S1: Mhm. So what would you leave parents with who are 80 00:04:26,610 --> 00:04:29,690 S1: listening today as to how to make the right selection. 81 00:04:30,210 --> 00:04:32,250 S2: You know I think one of the overriding things that 82 00:04:32,250 --> 00:04:35,090 S2: anybody needs to really, really keep in mind if they're 83 00:04:35,089 --> 00:04:39,490 S2: considering this pathway is that, yes, there's no college debt 84 00:04:39,490 --> 00:04:41,929 S2: once you get through one of these programs. And yes, 85 00:04:41,930 --> 00:04:45,130 S2: it's an incredible experience and very prestigious to have gone 86 00:04:45,130 --> 00:04:47,170 S2: through one of these programs. But at the end of 87 00:04:47,170 --> 00:04:50,050 S2: the day, you're signing up for service to your country, 88 00:04:50,050 --> 00:04:52,850 S2: and that includes the possibility of going to war. 89 00:04:53,250 --> 00:04:57,080 S1: Mhm. Yeah that certainly matters. And an important note. Matt 90 00:04:57,080 --> 00:05:00,280 S1: really important information. I'm delighted you wrote the article on 91 00:05:00,279 --> 00:05:02,800 S1: it where our listeners can get more information. Thanks for 92 00:05:02,800 --> 00:05:03,640 S1: being here today. 93 00:05:03,880 --> 00:05:06,120 S2: It's my pleasure. Rob, always good to talk with you. 94 00:05:06,240 --> 00:05:10,200 S1: That's Matt Bell, managing editor at Sound Mind Investing. For decades, 95 00:05:10,240 --> 00:05:14,200 S1: SMI has helped everyday investors make wise decisions with clear, 96 00:05:14,240 --> 00:05:18,159 S1: proven strategies rooted in biblical wisdom. Learn more at Sound 97 00:05:18,200 --> 00:05:23,159 S1: Mind Investing. Back with your questions. After this, stick around. 98 00:05:35,000 --> 00:05:37,279 S1: Great to have you with us on Faith and finance. Live. 99 00:05:37,279 --> 00:05:39,840 S1: I'm Rob West. Let me remind you that we're not 100 00:05:39,839 --> 00:05:42,720 S1: live today, so don't call in. But we have great 101 00:05:42,720 --> 00:05:45,960 S1: information lined up ahead in the program coming your way. 102 00:05:46,480 --> 00:05:50,120 S1: All right, let's begin today in New York. Uh, Bernadette, 103 00:05:50,160 --> 00:05:51,480 S1: thank you for calling. Go ahead. 104 00:05:52,390 --> 00:05:53,110 S3: Hi, Rob. 105 00:05:53,510 --> 00:05:56,150 S4: Hi, there. I have a couple of questions. Hi. Hi. 106 00:05:56,310 --> 00:05:57,150 S1: How can I help you? 107 00:05:57,190 --> 00:05:59,390 S4: Okay, so, um, I have a little bit of a 108 00:05:59,430 --> 00:06:01,990 S4: windfall coming in, and I don't know if I would 109 00:06:01,990 --> 00:06:04,070 S4: call it a windfall. I worked very hard for it, 110 00:06:04,070 --> 00:06:06,110 S4: but I'm selling my current business. 111 00:06:06,310 --> 00:06:06,710 S1: Okay. 112 00:06:06,750 --> 00:06:09,670 S4: And it looks like when I walk away from the 113 00:06:09,670 --> 00:06:12,150 S4: debt that I owe on the business and the taxes, 114 00:06:12,550 --> 00:06:17,670 S4: that I'll probably have maybe 2 million or $2.5 million, 115 00:06:17,670 --> 00:06:21,510 S4: which is a little overwhelming and astonishing. And I feel 116 00:06:21,550 --> 00:06:25,070 S4: very blessed and grateful that the Lord has been so 117 00:06:25,070 --> 00:06:27,670 S4: kind to me. Um, but now I don't know what to. 118 00:06:27,710 --> 00:06:30,830 S4: I'm just beside myself. I don't I've never seen that 119 00:06:30,830 --> 00:06:34,789 S4: kind of money in my life. I've always worked so hard. Um, but, 120 00:06:34,830 --> 00:06:37,110 S4: you know, I do have some questions about how to 121 00:06:37,110 --> 00:06:40,230 S4: invest that money safely. Because I'm risk averse. What kind 122 00:06:40,270 --> 00:06:42,750 S4: of cash? I might need to keep on hand. And 123 00:06:42,790 --> 00:06:45,910 S4: of course, my third question about tithing. Yes. 124 00:06:45,950 --> 00:06:50,390 S1: Very good. Excellent. Well, Bernadette, obviously the Lord is entrusting 125 00:06:50,390 --> 00:06:54,229 S1: you with a significant amount of his resources. It all 126 00:06:54,270 --> 00:06:57,390 S1: belongs to him. He's entrusting it to you to be 127 00:06:57,390 --> 00:07:00,950 S1: his his household manager. That's how we translate the word 128 00:07:00,990 --> 00:07:04,349 S1: steward oikonomos that we see in the New Testament. So 129 00:07:04,350 --> 00:07:07,430 S1: we recognize the starting point is we own nothing. This 130 00:07:07,430 --> 00:07:09,990 S1: is not your 2 million. You know, everything I have 131 00:07:10,030 --> 00:07:12,710 S1: is not mine. It belongs to God. And yet you have. 132 00:07:12,950 --> 00:07:16,350 S1: It's not intended to diminish your your role in this, 133 00:07:16,350 --> 00:07:19,470 S1: because it's a high calling that you have been entrusted 134 00:07:19,470 --> 00:07:22,230 S1: this to manage. Now, that shouldn't be something we are 135 00:07:22,230 --> 00:07:25,830 S1: fearful about, because we have plenty of insight from God's 136 00:07:25,830 --> 00:07:28,190 S1: Word in terms of how we should think about it. 137 00:07:28,190 --> 00:07:31,230 S1: And the Bible is very clear we should seek wise counsel. 138 00:07:31,230 --> 00:07:33,270 S1: And that's ultimately where I'm going to point you at 139 00:07:33,270 --> 00:07:36,070 S1: the end of our time together. Today is a certified 140 00:07:36,070 --> 00:07:40,550 S1: Kingdom Advisor. When you go to find a com, these 141 00:07:40,550 --> 00:07:43,790 S1: are men and women who have attained the only financial 142 00:07:43,790 --> 00:07:47,710 S1: services industry designation for those that have met a high 143 00:07:47,750 --> 00:07:52,260 S1: bar in training and experience, and passed a reference and 144 00:07:52,260 --> 00:07:54,900 S1: client reference and a regulatory review and a code of 145 00:07:54,900 --> 00:07:57,180 S1: ethics and a statement of faith. I mean, there is 146 00:07:57,180 --> 00:07:59,900 S1: a lot of hoops to jump through, but then you 147 00:07:59,940 --> 00:08:04,540 S1: know that this is somebody who I can then trust. And, 148 00:08:04,580 --> 00:08:06,850 S1: you know, I would encourage you to interview 2 or 149 00:08:06,850 --> 00:08:10,100 S1: 3 certified Kingdom advisors there in New York. Find the 150 00:08:10,100 --> 00:08:12,739 S1: one that's the best fit who can come alongside you, 151 00:08:12,740 --> 00:08:16,380 S1: encourage you, help you think through how to manage this 152 00:08:16,380 --> 00:08:20,340 S1: money as a steward not based on the advisor's goals 153 00:08:20,340 --> 00:08:24,140 S1: and objectives or risk tolerance, but based on yours. Because 154 00:08:24,180 --> 00:08:27,260 S1: as you started today, you said, I'm risk averse, and 155 00:08:27,260 --> 00:08:29,580 S1: that's a good thing to know for this advisor, so 156 00:08:29,620 --> 00:08:33,180 S1: that you and the advisor can build a plan that says, okay, 157 00:08:33,220 --> 00:08:35,500 S1: how do we take what God has entrusted to us, 158 00:08:35,660 --> 00:08:38,180 S1: not be fearful? We don't want to be like the, 159 00:08:38,460 --> 00:08:42,060 S1: you know, the the, uh, manager that, uh, you know, 160 00:08:42,100 --> 00:08:45,260 S1: was entrusted in the parable of the talents, the servant 161 00:08:45,300 --> 00:08:48,220 S1: who was entrusted with some that, you know, he buried, 162 00:08:48,730 --> 00:08:52,569 S1: because perhaps he was fearful of his master. But by 163 00:08:52,610 --> 00:08:55,810 S1: trusting his master, we want to be like those servants 164 00:08:55,809 --> 00:08:58,730 S1: that put it to work and saw a return on it, 165 00:08:58,730 --> 00:09:01,610 S1: realizing that it's not ours. In the case of the 166 00:09:01,610 --> 00:09:06,130 S1: parable of the talents, it wasn't the servants anyway. They 167 00:09:06,130 --> 00:09:08,970 S1: knew it belonged to the master so they could take, 168 00:09:09,010 --> 00:09:12,490 S1: you know, appropriate care with it, but also put it 169 00:09:12,490 --> 00:09:15,530 S1: to work and trust that God, you know, will continue 170 00:09:15,530 --> 00:09:18,530 S1: to provide. And I think part of that means defining 171 00:09:18,530 --> 00:09:21,730 S1: what is the right investment strategy for you. Now, that 172 00:09:21,730 --> 00:09:25,330 S1: could skew because you perhaps have all that you need, 173 00:09:25,370 --> 00:09:29,609 S1: maybe even more than you need. That could skew very conservative. 174 00:09:29,610 --> 00:09:33,210 S1: So that could look like things like CDs. It could 175 00:09:33,210 --> 00:09:36,210 S1: look like Treasury bonds. But I would say it's probably 176 00:09:36,210 --> 00:09:39,610 S1: appropriate to have a portion of that in stocks because, 177 00:09:39,650 --> 00:09:42,210 S1: you know, one of the the risks, if you will, 178 00:09:42,250 --> 00:09:46,610 S1: from a, you know, a purely just an economic standpoint is, 179 00:09:47,000 --> 00:09:49,840 S1: you know, you have inflation risk. So for instance, if 180 00:09:49,840 --> 00:09:52,240 S1: you were to put all this just in CDs or 181 00:09:52,400 --> 00:09:56,080 S1: savings accounts, that may not keep up with the rising 182 00:09:56,080 --> 00:09:59,270 S1: cost of living. Uh, you know, especially over a 20 183 00:09:59,270 --> 00:10:03,920 S1: or 30 year retirement, you have what's called reinvestment risk. 184 00:10:03,920 --> 00:10:08,160 S1: So rates today might not hold. And when these CDs mature, 185 00:10:08,400 --> 00:10:11,680 S1: the returns could drop sharply. You also have what's called 186 00:10:11,679 --> 00:10:15,360 S1: longevity risk. If the Lord, you know, has, uh, you know, 187 00:10:15,400 --> 00:10:17,600 S1: still quite a bit of time planned for you here 188 00:10:17,600 --> 00:10:20,120 S1: before he calls you home. Uh, and you live a 189 00:10:20,160 --> 00:10:23,800 S1: long life, then you need the, the the growth of 190 00:10:23,800 --> 00:10:27,280 S1: this money so that the money lasts. But there's a 191 00:10:27,280 --> 00:10:30,200 S1: way to do that that I think is safe and smart, 192 00:10:30,360 --> 00:10:33,480 S1: that ultimately is depending on the Lord. And so perhaps 193 00:10:33,480 --> 00:10:36,480 S1: one approach is to say, okay, bucket number one is 194 00:10:36,480 --> 00:10:39,000 S1: my liquidity and my stability. I'm going to have somewhere 195 00:10:39,000 --> 00:10:42,200 S1: between 1 and 3 years worth of expenses in high 196 00:10:42,200 --> 00:10:45,949 S1: yield savings and short term CDs and And treasuries. And 197 00:10:45,950 --> 00:10:49,670 S1: then bucket two is for income generation where I'm looking 198 00:10:49,670 --> 00:10:51,670 S1: out 5 to 10 years. And that might be high 199 00:10:51,710 --> 00:10:55,190 S1: quality bonds or a laddered CD. And then bucket three 200 00:10:55,230 --> 00:10:58,470 S1: maybe is your long term inflation protection. And that's where 201 00:10:58,470 --> 00:11:02,630 S1: you have conservative diversified stock exposure. But give me your 202 00:11:02,630 --> 00:11:03,630 S1: thoughts on all that. 203 00:11:04,550 --> 00:11:07,510 S4: Um, I think that's great information. You know, things I 204 00:11:07,510 --> 00:11:10,910 S4: hadn't even thought about. And, um, I'm very grateful for, 205 00:11:10,950 --> 00:11:13,710 S4: you know, making this phone call because I really had 206 00:11:13,710 --> 00:11:15,670 S4: no idea where to go. I literally was going to 207 00:11:15,670 --> 00:11:17,990 S4: squirrel it away in a CD. But now that you 208 00:11:17,990 --> 00:11:20,750 S4: talk about long term inflation, you know, that's a really 209 00:11:20,750 --> 00:11:23,589 S4: good point. Also, the short term having, you know, cash 210 00:11:23,590 --> 00:11:26,350 S4: on hand and just knowing that, you know, the wise 211 00:11:26,390 --> 00:11:28,069 S4: way to move forward would be to put it in 212 00:11:28,070 --> 00:11:30,910 S4: three different buckets and get some good advice on that. 213 00:11:30,950 --> 00:11:33,709 S4: You know, I've invested in the past some small amounts 214 00:11:33,710 --> 00:11:36,990 S4: and I've had some bad experiences with that. So I 215 00:11:37,030 --> 00:11:39,270 S4: am averse to some of this. But knowing that there's 216 00:11:39,270 --> 00:11:42,949 S4: some Kingdom advisors that changes the whole picture for me. 217 00:11:42,990 --> 00:11:45,030 S4: You know, just to have that take some of the 218 00:11:45,030 --> 00:11:47,870 S4: fear out of this, because you know that that's the 219 00:11:47,870 --> 00:11:50,310 S4: first thing that sneaks in. The enemy wants us to 220 00:11:50,309 --> 00:11:52,710 S4: be afraid. And I would double down on my prayer 221 00:11:52,750 --> 00:11:57,230 S4: life for this, and I appreciate your feedback. So thank you. 222 00:11:57,429 --> 00:12:00,790 S1: Well, those who are faithful and a little are entrusted 223 00:12:00,790 --> 00:12:03,630 S1: and are to be faithful in much. And God has 224 00:12:03,630 --> 00:12:06,830 S1: seen fit to entrust you with much, and he knows 225 00:12:06,830 --> 00:12:09,670 S1: what he's doing. And I love that you are going 226 00:12:09,710 --> 00:12:11,630 S1: to lead with prayer. I love that you're going to 227 00:12:11,670 --> 00:12:14,230 S1: seek wise counsel. I love that you want to get 228 00:12:14,230 --> 00:12:16,270 S1: this right and that you want to be faithful in 229 00:12:16,309 --> 00:12:19,510 S1: managing God's resources. And I'm glad I could give you 230 00:12:19,510 --> 00:12:22,630 S1: just some nuggets of things to consider today. And I 231 00:12:22,630 --> 00:12:25,470 S1: think your next step. Um, you know, perhaps is to 232 00:12:25,510 --> 00:12:29,910 S1: go to find a com. And one of the things 233 00:12:29,910 --> 00:12:32,430 S1: you can do there is hear from just in some 234 00:12:32,429 --> 00:12:36,430 S1: short 62nd clips, you'll hear from some of the kca's 235 00:12:36,670 --> 00:12:39,910 S1: on that web page as they talk about what's different 236 00:12:40,550 --> 00:12:44,179 S1: in the advice that comes from a certified Kingdom advisor, 237 00:12:44,220 --> 00:12:45,740 S1: you know, what does it mean to be a Christian 238 00:12:45,740 --> 00:12:49,140 S1: financial advisor versus an advisor who's just a Christian? And 239 00:12:49,140 --> 00:12:52,420 S1: how do they define success for their clients? And, you know, 240 00:12:52,500 --> 00:12:54,940 S1: what are those differentiators? You'll hear a little bit of 241 00:12:54,940 --> 00:12:56,819 S1: that on that website. But then the other big thing 242 00:12:56,820 --> 00:12:59,300 S1: you'll be able to do is actually do a search 243 00:12:59,300 --> 00:13:02,260 S1: in your zip code and find the Sikhs that are 244 00:13:02,300 --> 00:13:05,860 S1: near you. And, um, you know, I think once you do, 245 00:13:05,980 --> 00:13:09,420 S1: you will be able to find a trusted partner. Let's 246 00:13:09,420 --> 00:13:11,500 S1: do this. I'm going to have my team get your information. 247 00:13:11,500 --> 00:13:13,940 S1: I want to send you a couple of things, and 248 00:13:13,940 --> 00:13:16,060 S1: I'd love to just connect with you and send you 249 00:13:16,059 --> 00:13:17,780 S1: a few things that I think will be an encouragement 250 00:13:17,780 --> 00:13:20,780 S1: to you. Um, and so if you'll stay on the line, Bernadette, 251 00:13:20,780 --> 00:13:22,660 S1: our team will get your information and I'll get some 252 00:13:22,660 --> 00:13:24,020 S1: things right out to you. Okay? 253 00:13:24,580 --> 00:13:25,660 S4: Thank you so much. 254 00:13:25,700 --> 00:13:28,819 S1: All right, hold the line. Lord bless you, Arkansas. Charlie. 255 00:13:28,820 --> 00:13:29,300 S1: Go ahead. 256 00:13:29,700 --> 00:13:33,100 S5: Rob, I'd like to know, since I am going to 257 00:13:33,100 --> 00:13:37,059 S5: be drawing my full benefit of Social Security in December, 258 00:13:37,340 --> 00:13:42,970 S5: I was wondering, how much can I make Without being taxed. 259 00:13:43,130 --> 00:13:48,209 S1: Yeah. Um, so you are at full retirement age, and 260 00:13:48,210 --> 00:13:51,970 S1: so that means that you no longer have an earnings limit. 261 00:13:52,250 --> 00:13:55,690 S1: That limit in terms of what you can earn only 262 00:13:55,690 --> 00:14:00,170 S1: applies to people before full retirement age. But once you 263 00:14:00,170 --> 00:14:03,610 S1: reach full retirement age, which is, you know, no later 264 00:14:03,610 --> 00:14:07,970 S1: than 67, uh, then you can earn any amount and 265 00:14:07,970 --> 00:14:11,569 S1: still receive your full Social Security benefit with no reduction. 266 00:14:12,450 --> 00:14:15,250 S1: I think we lost him. Hopefully that helps you, Charlie, 267 00:14:15,250 --> 00:14:17,569 S1: but it sounds like you're in good shape there. You 268 00:14:17,570 --> 00:14:20,130 S1: can work away, earn as much as you want. You're 269 00:14:20,130 --> 00:14:22,770 S1: going to continue receiving that benefit. Hey, thanks for your 270 00:14:22,770 --> 00:14:25,330 S1: call today. Much more to come. Just around the corner. 271 00:14:25,330 --> 00:14:36,330 S1: Stick around. So glad to have you with us today 272 00:14:36,330 --> 00:14:39,770 S1: on Faith and Finance Live. Our team is away today, 273 00:14:39,840 --> 00:14:42,400 S1: so don't call in. But we lined up some great 274 00:14:42,400 --> 00:14:44,600 S1: questions in advance and we'll be going to those here 275 00:14:44,600 --> 00:14:47,240 S1: in just a moment. Let me also remind you that 276 00:14:47,240 --> 00:14:49,880 S1: the advice that I give each day on this program 277 00:14:49,880 --> 00:14:54,800 S1: is general in nature. We offer principles and ideas that 278 00:14:54,800 --> 00:14:58,120 S1: apply at a high level. They are not personalized. So 279 00:14:58,240 --> 00:15:02,000 S1: that's why you should always seek professional financial advice. And 280 00:15:02,040 --> 00:15:05,200 S1: if you'd like to find a professional who shares your values, 281 00:15:05,200 --> 00:15:08,000 S1: we of course, here at Faith and Finance Live recommend 282 00:15:08,000 --> 00:15:11,520 S1: the Certified Kingdom Advisor designation. These are men and women 283 00:15:11,520 --> 00:15:14,680 S1: who've met high standards, and they've been trained to bring 284 00:15:14,680 --> 00:15:17,560 S1: a biblical worldview of financial decision making. You can find 285 00:15:17,560 --> 00:15:19,960 S1: one at Faith comm. All right. Let's head back to 286 00:15:19,960 --> 00:15:23,200 S1: the phones. Let's go to Ohio. Kelly, thanks for your patience. 287 00:15:23,240 --> 00:15:23,800 S1: Go ahead. 288 00:15:24,320 --> 00:15:28,520 S6: Hi. I just recently bought a car, and now I'm 289 00:15:28,520 --> 00:15:31,680 S6: having a hard time fitting it into my budget. On paper, 290 00:15:31,680 --> 00:15:34,280 S6: it seemed like I would be fine on being able 291 00:15:34,280 --> 00:15:37,080 S6: to afford it, but now that I'm in it and, 292 00:15:37,120 --> 00:15:40,440 S6: you know, my insurance went up and so now I 293 00:15:40,440 --> 00:15:43,680 S6: just have no extra money and I didn't know if 294 00:15:43,680 --> 00:15:47,160 S6: there was any way. I don't know, return it or 295 00:15:47,760 --> 00:15:50,760 S6: get out of it just because I've done so well 296 00:15:50,800 --> 00:15:54,400 S6: getting my credit, you know? Good. And now I'm afraid 297 00:15:54,400 --> 00:15:56,400 S6: that I'm going to dig myself in a hole. 298 00:15:56,600 --> 00:15:59,680 S1: Yeah. Well, I certainly understand, Kelly. And this is is 299 00:15:59,680 --> 00:16:02,520 S1: really common. Um, we want to help you make a 300 00:16:02,520 --> 00:16:04,920 S1: good decision here moving forward. You know, the challenge is 301 00:16:04,920 --> 00:16:07,320 S1: this is one of the big three budget busters that 302 00:16:07,320 --> 00:16:10,680 S1: we just so commonly see. It's housing. We buy too 303 00:16:10,680 --> 00:16:14,560 S1: much house, and, you know, may be fine initially, or 304 00:16:14,560 --> 00:16:16,920 S1: maybe not, but even if it is, you know, as 305 00:16:16,920 --> 00:16:21,360 S1: the escrows go up with increasing property taxes and insurance 306 00:16:21,360 --> 00:16:24,560 S1: and maintenance and all the things we didn't factor in initially, 307 00:16:24,560 --> 00:16:28,920 S1: it just becomes really problematic. The second is, is transportation 308 00:16:28,960 --> 00:16:31,520 S1: and a little easier to get rid of than a house, 309 00:16:31,520 --> 00:16:35,000 S1: but still, you know, create some challenges. And then food 310 00:16:35,000 --> 00:16:38,230 S1: is the third one. And that's obviously a little easier 311 00:16:38,230 --> 00:16:41,710 S1: to rectify in terms of your options here. I mean, 312 00:16:41,750 --> 00:16:44,390 S1: the first option you could pursue is, is just to 313 00:16:44,430 --> 00:16:49,390 S1: contact your lender and reach out, discuss your situation. They 314 00:16:49,390 --> 00:16:53,350 S1: could offer some solutions like adjusting your payment schedule, so 315 00:16:53,350 --> 00:16:57,910 S1: maybe extending it out further and therefore lowering your payment. 316 00:16:57,950 --> 00:17:01,550 S1: You know, a lot of folks used to automatically get, uh, 317 00:17:01,590 --> 00:17:04,670 S1: you know, a five year auto loan. Now it's more 318 00:17:04,670 --> 00:17:08,710 S1: common to see a six year, uh, just because cars 319 00:17:08,710 --> 00:17:11,750 S1: are so expensive, people are pushing them out to 72 months. Well, 320 00:17:11,750 --> 00:17:15,830 S1: they may be able to recast your loan, which would 321 00:17:15,830 --> 00:17:17,750 S1: allow you even though you're going to pay more in interest. 322 00:17:17,750 --> 00:17:20,870 S1: It would allow you to bring that payment down slightly. Uh, 323 00:17:20,869 --> 00:17:23,429 S1: you could consider a hardship program that's going to be 324 00:17:23,470 --> 00:17:27,070 S1: a little more challenging and could impact your credit, but 325 00:17:27,070 --> 00:17:30,070 S1: it would allow you to potentially pause or reduce your 326 00:17:30,070 --> 00:17:33,670 S1: payments temporarily. Uh, if you're, you know, facing a hardship 327 00:17:33,670 --> 00:17:35,940 S1: that you would have to show them you're probably not 328 00:17:35,940 --> 00:17:39,300 S1: there yet. You could refinance it. So you try to 329 00:17:39,340 --> 00:17:42,419 S1: lower the payments by lowering the interest rate, extending the 330 00:17:42,420 --> 00:17:45,020 S1: term on it. There's going to be some cost to that. 331 00:17:45,020 --> 00:17:47,340 S1: And we haven't seen a whole lot of movement in rates. 332 00:17:47,340 --> 00:17:50,700 S1: So you're probably not likely to get a lower rate 333 00:17:50,700 --> 00:17:54,340 S1: unless you had poorer credit when you got it. Your 334 00:17:54,340 --> 00:17:57,540 S1: credit is better now. And and if that could help you, 335 00:17:57,580 --> 00:18:00,820 S1: you know, secure a better rate that may, you know, 336 00:18:00,859 --> 00:18:03,660 S1: help you save some dollars or at least get that 337 00:18:03,660 --> 00:18:06,860 S1: payment down. Of course, you know, going to your budget 338 00:18:06,859 --> 00:18:10,060 S1: and looking for other places where you can cut back. 339 00:18:10,100 --> 00:18:13,980 S1: I mean, reduce discretionary spending, find ways to lower fixed 340 00:18:13,980 --> 00:18:18,100 S1: costs like insurance premiums, I mean, budget adjustments that free 341 00:18:18,140 --> 00:18:20,540 S1: up more money for you to focus on. You know, 342 00:18:20,580 --> 00:18:24,380 S1: this getting this car paid off would obviously be, uh, great. Now, 343 00:18:24,820 --> 00:18:27,420 S1: the final step is, you know, one that can be 344 00:18:27,420 --> 00:18:30,459 S1: a little challenging. And it requires, you know, you to 345 00:18:30,500 --> 00:18:32,660 S1: consider a number of factors. And that is, you could 346 00:18:32,660 --> 00:18:35,370 S1: just sell the car and try to find one that 347 00:18:35,369 --> 00:18:39,170 S1: you can afford. Um, a little more effectively, assuming you're 348 00:18:39,170 --> 00:18:43,690 S1: not upside down. Perhaps you could unload this car for 349 00:18:43,690 --> 00:18:47,129 S1: what you owe on it and then get into something that's, 350 00:18:47,170 --> 00:18:49,730 S1: you know, maybe three or 4 or 5 years older. 351 00:18:49,930 --> 00:18:52,410 S1: Even though you may have a little bit more in maintenance, 352 00:18:52,530 --> 00:18:54,770 S1: you know, maybe you can get into something that's a 353 00:18:54,770 --> 00:18:58,409 S1: little bit more manageable. Again, assuming you're not upside down 354 00:18:58,410 --> 00:19:00,370 S1: where you, you know, you owe more than the car 355 00:19:00,369 --> 00:19:02,570 S1: is worth. But give me your thoughts on all that. 356 00:19:03,090 --> 00:19:04,729 S6: That's kind of what I was thinking, that I probably 357 00:19:04,730 --> 00:19:07,770 S6: need to cut back on different things. I guess I 358 00:19:07,770 --> 00:19:11,490 S6: thought about like, balance transfer cards where I have other 359 00:19:11,490 --> 00:19:14,609 S6: credit cards that I'm paying a lot of interest on, 360 00:19:14,650 --> 00:19:17,250 S6: that I've been making higher payments, trying to pay them off, 361 00:19:17,770 --> 00:19:21,090 S6: and I didn't know if, like if those are recommended 362 00:19:21,170 --> 00:19:25,130 S6: to kind of eliminate some of the interest so that 363 00:19:25,130 --> 00:19:28,210 S6: maybe in the long run I won't be so tight. 364 00:19:28,250 --> 00:19:28,850 S6: I guess. 365 00:19:29,090 --> 00:19:31,690 S1: Yeah. What do you have in credit card debt right now? 366 00:19:32,330 --> 00:19:34,050 S6: Um, it's about 10,000. 367 00:19:34,290 --> 00:19:36,570 S1: Okay. Uh, have you ever looked into what's called a 368 00:19:36,570 --> 00:19:37,970 S1: debt management program? 369 00:19:38,530 --> 00:19:39,210 S6: Uh, no. 370 00:19:39,250 --> 00:19:41,810 S1: Okay, so my preferred way to get out from under 371 00:19:41,810 --> 00:19:44,810 S1: credit card debt once and for all is through what's 372 00:19:44,810 --> 00:19:47,490 S1: called debt management, or it's also known as credit counseling. 373 00:19:47,490 --> 00:19:50,730 S1: It's not factored into your credit score, so it wouldn't 374 00:19:50,730 --> 00:19:54,370 S1: affect your score at all. But essentially what you do 375 00:19:54,369 --> 00:19:57,889 S1: is you you move the card into a credit counseling program. 376 00:19:57,890 --> 00:20:01,290 S1: We recommend our friends at Christian Credit Counselors. Org. They've 377 00:20:01,290 --> 00:20:04,409 S1: worked with literally thousands of our listeners. And what happens 378 00:20:04,410 --> 00:20:07,810 S1: is the interest rates dropped. So whatever it is now, 379 00:20:07,970 --> 00:20:11,370 S1: now if you're on a balance transfer and you're at 0%, uh, 380 00:20:11,369 --> 00:20:13,490 S1: you know, obviously it's going to go up, but you're 381 00:20:13,490 --> 00:20:16,330 S1: not going to have to keep paying that balance transfer game. 382 00:20:16,330 --> 00:20:18,449 S1: So the average credit card interest rate right now is 383 00:20:18,450 --> 00:20:23,170 S1: somewhere between 20 and 23%. And credit counseling, it drops 384 00:20:23,170 --> 00:20:27,610 S1: to between 0 and 12%, usually between 0 and 8%. 385 00:20:27,609 --> 00:20:30,530 S1: And then it stays there throughout the life of the loan. 386 00:20:30,530 --> 00:20:34,760 S1: And then you just make your payment through Christian credit counselors. 387 00:20:34,920 --> 00:20:38,040 S1: But the key is with that reduction in interest and 388 00:20:38,040 --> 00:20:42,200 S1: the level monthly payment, you'll pay it back on average 80% faster. 389 00:20:42,520 --> 00:20:44,520 S1: So that would be the way that I would go 390 00:20:44,520 --> 00:20:47,959 S1: on the credit cards. And then once you lock in 391 00:20:48,000 --> 00:20:51,200 S1: that monthly payment, rather than trying to send extra, especially 392 00:20:51,200 --> 00:20:53,800 S1: with a lower payment, maybe now you could take that 393 00:20:53,800 --> 00:20:56,280 S1: money that you were sending to the credit cards and 394 00:20:56,280 --> 00:20:59,199 S1: redirect that to just making sure you can cover the 395 00:20:59,200 --> 00:21:01,320 S1: car payment every month to get that paid off as 396 00:21:01,320 --> 00:21:04,160 S1: soon as possible. And then the other step is to, 397 00:21:04,200 --> 00:21:06,320 S1: you know, go back to the budget and just look 398 00:21:06,320 --> 00:21:09,160 S1: for other ways you can cut. If you're not tracking 399 00:21:09,160 --> 00:21:11,480 S1: your spending, you know, that would be a key way 400 00:21:11,480 --> 00:21:14,800 S1: for you to identify other areas that maybe you're not 401 00:21:14,800 --> 00:21:18,919 S1: even aware of. Maybe it's subscriptions or, you know, just regular, 402 00:21:19,080 --> 00:21:22,040 S1: you know, eating out or things like that that, you know, 403 00:21:22,080 --> 00:21:24,239 S1: add up over time that you're not even realizing how 404 00:21:24,240 --> 00:21:26,600 S1: much you're spending that you could cut back on if 405 00:21:26,640 --> 00:21:28,840 S1: you knew they were there. And then, you know, it 406 00:21:28,880 --> 00:21:30,990 S1: could free up some other dollars that way as well, 407 00:21:30,990 --> 00:21:32,830 S1: so hopefully that helps you if you want to reach 408 00:21:32,830 --> 00:21:36,830 S1: out to our friends, Christian credit Counselors and Kelly, we 409 00:21:36,830 --> 00:21:38,990 S1: appreciate you being on with us today. All right. We're 410 00:21:38,990 --> 00:21:41,109 S1: going to head to a break, so don't go anywhere. 411 00:21:41,109 --> 00:21:43,510 S1: Still a lot more to come even though we're away 412 00:21:43,510 --> 00:21:46,070 S1: from the studio today and you shouldn't call in. We 413 00:21:46,070 --> 00:21:48,550 S1: have some great questions that you're really going to enjoy. 414 00:21:48,550 --> 00:21:52,150 S1: As we continue to apply God's wisdom to your financial decisions. 415 00:21:52,150 --> 00:22:06,190 S1: We'll be right back. Thanks for joining us today on 416 00:22:06,190 --> 00:22:09,510 S1: Faith and Finance Live again. We're not here today. Our 417 00:22:09,510 --> 00:22:11,470 S1: team is away from the studio, so don't call in. 418 00:22:11,470 --> 00:22:14,990 S1: But we've got some great questions coming up. Uh, let's 419 00:22:14,990 --> 00:22:17,030 S1: go to Columbus. Hi, Sandy. How can we help? 420 00:22:17,630 --> 00:22:22,669 S7: Hi, Rob. I have to me, it's seems convoluted, but 421 00:22:22,670 --> 00:22:26,429 S7: I think it's probably simple. Trying to need a new car. 422 00:22:26,470 --> 00:22:30,820 S7: I'm 70, I'm retired, so I have a good monthly income, 423 00:22:31,260 --> 00:22:34,620 S7: but I'm trying to figure out if I should go 424 00:22:34,660 --> 00:22:38,180 S7: ahead and pay off my home, which I owe 27,000 on, 425 00:22:38,500 --> 00:22:42,379 S7: or I should, which of course would be a higher payment, 426 00:22:42,380 --> 00:22:46,859 S7: or get a car which I need, which could be 427 00:22:46,900 --> 00:22:50,419 S7: maybe around 20 and lower payments, but I'd rather not 428 00:22:50,420 --> 00:22:55,100 S7: have two payments and I'm unsure about where I pull 429 00:22:55,100 --> 00:22:56,300 S7: that money from. 430 00:22:56,660 --> 00:23:00,980 S1: Yeah. So I understand you've got the $27,000 mortgage, 70 431 00:23:01,020 --> 00:23:04,100 S1: and retired and the car that you need. You think 432 00:23:04,100 --> 00:23:07,379 S1: you need to spend about you're looking to spend about 20,000. 433 00:23:07,420 --> 00:23:09,700 S1: What are you doing right now for transportation? 434 00:23:10,140 --> 00:23:12,540 S7: I have a car, but it's a 2012 and it 435 00:23:12,540 --> 00:23:15,100 S7: has 160,000 miles on it. 436 00:23:15,140 --> 00:23:18,260 S1: Okay. Does it need extensive repairs or is it in 437 00:23:18,300 --> 00:23:19,540 S1: fairly good working order? 438 00:23:19,980 --> 00:23:22,460 S7: It doesn't need extensive repairs. No. 439 00:23:22,820 --> 00:23:23,780 S1: Okay. All right. 440 00:23:23,820 --> 00:23:24,660 S8: I think it's more. 441 00:23:24,700 --> 00:23:26,660 S7: About my feeling of security. 442 00:23:26,930 --> 00:23:29,210 S1: Yeah. And I can certainly understand that. You know, the 443 00:23:29,210 --> 00:23:30,770 S1: last thing you want to do is be stuck somewhere 444 00:23:30,770 --> 00:23:33,010 S1: because the car, you know, doesn't work. I mean, you 445 00:23:33,010 --> 00:23:36,490 S1: can help with that by, you know, getting a membership to, 446 00:23:36,650 --> 00:23:39,010 S1: you know, some service that will come out and, you know, 447 00:23:39,050 --> 00:23:41,090 S1: take care of that. But obviously, you know, as a 448 00:23:41,090 --> 00:23:43,889 S1: 70 year old female, I can understand why you would 449 00:23:43,890 --> 00:23:47,450 S1: want to have a worthwhile and trustworthy car. Let's talk 450 00:23:47,450 --> 00:23:49,290 S1: about the assets that you have, because I know that 451 00:23:49,290 --> 00:23:50,970 S1: would be the next question is where do we pull 452 00:23:50,970 --> 00:23:53,810 S1: from to either pay off the house or, you know, 453 00:23:53,890 --> 00:23:56,290 S1: buy the car? So what do you have available? 454 00:23:57,010 --> 00:24:01,570 S7: I retired from public service, so I have deferred comp 455 00:24:01,570 --> 00:24:06,010 S7: and I have about 190 in there. I have in 456 00:24:06,050 --> 00:24:10,810 S7: my credit union I have probably around I think it's 457 00:24:10,810 --> 00:24:14,850 S7: around 20 and eight of that is in a money market. 458 00:24:14,850 --> 00:24:17,810 S7: So other than that I have some money in my 459 00:24:18,170 --> 00:24:21,609 S7: checking account, which I really hate to admit, but I 460 00:24:21,650 --> 00:24:25,530 S7: had loaned a business. I had been in some money 461 00:24:25,570 --> 00:24:27,930 S7: and when it came back to me, I couldn't put 462 00:24:27,930 --> 00:24:32,290 S7: it back in. Deferred comp. So it's been sitting in 463 00:24:32,330 --> 00:24:35,850 S7: my account and it's about 20,000 as well. 464 00:24:36,090 --> 00:24:37,170 S8: Checking account. 465 00:24:37,530 --> 00:24:40,970 S1: Okay, so you've got about 50,000 all in between the 466 00:24:41,010 --> 00:24:43,130 S1: eight and the two 20s. Is that right? 467 00:24:43,730 --> 00:24:44,290 S8: Yes. 468 00:24:44,490 --> 00:24:47,810 S1: Okay. So what do you spend on a monthly typical 469 00:24:47,810 --> 00:24:50,130 S1: month in general? 470 00:24:50,490 --> 00:24:50,850 S8: Yeah. 471 00:24:50,890 --> 00:24:53,010 S1: Just on the average month. What do you think your 472 00:24:53,010 --> 00:24:54,369 S1: total expenses roughly. 473 00:24:54,970 --> 00:25:00,290 S7: I'm probably I have some well about 3000. 474 00:25:00,450 --> 00:25:04,090 S1: Okay. So if we wanted six months worth of expenses, 475 00:25:04,090 --> 00:25:08,850 S1: that'd be 18,000. You know, let's call it 20,000. So 476 00:25:08,850 --> 00:25:12,850 S1: if you just kept the 20,000 in the credit union, 477 00:25:12,850 --> 00:25:15,810 S1: and you pulled the 8000 and the 20,000 that's in 478 00:25:15,810 --> 00:25:19,129 S1: checking and paid off the house, which that would do it, 479 00:25:19,330 --> 00:25:21,570 S1: you'd all of a sudden at that point, you'd still 480 00:25:21,570 --> 00:25:25,879 S1: have more than six months worth of expenses in liquid reserves. 481 00:25:26,200 --> 00:25:29,960 S1: And now you'd free up the monthly payment that you 482 00:25:30,000 --> 00:25:32,840 S1: were sending for the house. At least the. Not the 483 00:25:32,840 --> 00:25:35,560 S1: taxes and the insurance, but at least the principal and interest. 484 00:25:35,600 --> 00:25:37,280 S1: Do you know how much that is every month that 485 00:25:37,280 --> 00:25:38,520 S1: you'd now be saving? 486 00:25:39,040 --> 00:25:41,440 S7: I couldn't tell you that right now. I didn't think 487 00:25:41,440 --> 00:25:42,600 S7: about looking that up. 488 00:25:42,800 --> 00:25:42,919 S8: Yeah. 489 00:25:42,920 --> 00:25:45,000 S1: That's okay. So that would be one thing is, if 490 00:25:45,000 --> 00:25:47,760 S1: you're really set on I only want to have one loan, 491 00:25:48,119 --> 00:25:52,120 S1: then I would be comfortable with you paying off the house. 492 00:25:52,400 --> 00:25:55,280 S1: Still having six months worth of expenses in the bank, 493 00:25:55,560 --> 00:25:59,640 S1: plus your your income stream, not touching your deferred comp. 494 00:25:59,640 --> 00:26:02,840 S1: So that can continue to grow. And then taking that 495 00:26:03,160 --> 00:26:06,920 S1: monthly payment that you were sending to the house principal 496 00:26:06,920 --> 00:26:10,840 S1: and interest. And now using that or probably hopefully a 497 00:26:10,840 --> 00:26:12,960 S1: lot less than that. But some of that for a 498 00:26:12,960 --> 00:26:16,000 S1: new car payment, not the new car but new to you. 499 00:26:16,280 --> 00:26:19,280 S1: And then whatever is left that you're not using for 500 00:26:19,280 --> 00:26:24,790 S1: the car payment, you're now building back up your emergency savings. 501 00:26:24,990 --> 00:26:25,950 S1: Does that make sense? 502 00:26:26,510 --> 00:26:27,750 S7: Yes it does. 503 00:26:27,790 --> 00:26:28,790 S8: Yep. Okay, so. 504 00:26:28,790 --> 00:26:31,830 S1: That would be one option. The other option is you 505 00:26:31,830 --> 00:26:36,190 S1: leave the home the way it is and you just 506 00:26:36,190 --> 00:26:39,990 S1: buy the car outright with the 20,000 that's in, you know, 507 00:26:40,030 --> 00:26:42,670 S1: your checking account that's from that business. 508 00:26:42,710 --> 00:26:43,110 S8: Yeah. 509 00:26:43,390 --> 00:26:46,230 S1: And and now we're not adding a new payment. And 510 00:26:46,230 --> 00:26:49,430 S1: then you just focus on paying off the house over time. 511 00:26:49,710 --> 00:26:52,750 S1: And now you've still got 28,000 in savings, which is 512 00:26:52,750 --> 00:26:56,389 S1: even more than six months, because that would give you, 513 00:26:56,430 --> 00:26:59,389 S1: you know, if you're spending, you know, 3000 a month, 514 00:26:59,670 --> 00:27:03,310 S1: that would give you nine months worth of expenses. So 515 00:27:03,310 --> 00:27:05,270 S1: I think you could go either way, buy the car 516 00:27:05,270 --> 00:27:08,750 S1: outright and still have nine months expenses, or pay off 517 00:27:08,750 --> 00:27:11,430 S1: the house and still have six months expenses. And then 518 00:27:11,430 --> 00:27:13,870 S1: just save the difference between the new car payment and 519 00:27:13,869 --> 00:27:16,590 S1: the mortgage payment that you're now no longer paying. 520 00:27:17,109 --> 00:27:18,710 S7: Yeah. Thank you. 521 00:27:19,109 --> 00:27:22,700 S8: You are welcome. Well, I'm glad. 522 00:27:22,700 --> 00:27:25,979 S1: And I appreciate your call today. All the best to you. Sandy, 523 00:27:25,980 --> 00:27:29,140 S1: thanks for being on the program. Let's go to Mississippi. John. 524 00:27:29,140 --> 00:27:29,700 S1: Go ahead. 525 00:27:30,220 --> 00:27:34,700 S9: Uh, Mr. Robb, what's the best way to invest in gold? Uh, 526 00:27:34,700 --> 00:27:37,700 S9: I missed the train years ago, and now I want 527 00:27:37,740 --> 00:27:42,060 S9: to protect myself. You know, long term by investing in gold. 528 00:27:42,060 --> 00:27:44,780 S9: Can you tell me what's the best way to do that? 529 00:27:44,820 --> 00:27:47,780 S1: Yeah, I like this question, John. And I think the 530 00:27:47,780 --> 00:27:51,740 S1: key here is to have an appropriate allocation of gold, 531 00:27:51,740 --> 00:27:55,300 S1: especially just given what's going on with gold this year 532 00:27:55,300 --> 00:27:57,500 S1: and even last year. I mean, we're up here in 533 00:27:57,500 --> 00:27:59,660 S1: the clouds now. Does that mean it's not warranted? No, 534 00:27:59,660 --> 00:28:02,699 S1: I don't think so. Um, but I don't want you 535 00:28:02,700 --> 00:28:06,859 S1: to chase return and get too highly concentrated in gold 536 00:28:06,859 --> 00:28:10,540 S1: because historically, gold, although it's a store of value and 537 00:28:10,540 --> 00:28:13,660 S1: it's it's a part of a diversified portfolio, it's uncorrelated 538 00:28:13,660 --> 00:28:16,140 S1: from the stock market. It tends to do well when 539 00:28:16,180 --> 00:28:18,300 S1: stocks are not. Even though we're in an environment where 540 00:28:18,300 --> 00:28:22,460 S1: everything's going up, including Bitcoin and gold and stocks. Um, 541 00:28:22,580 --> 00:28:25,859 S1: but normally, you know, it's a fear trade and I 542 00:28:25,859 --> 00:28:28,180 S1: think there's a place for it. I like to think 543 00:28:28,180 --> 00:28:30,139 S1: about it like this, John. It doesn't mean this is 544 00:28:30,140 --> 00:28:33,740 S1: the right approach for everybody, but an approach is to say, okay, 545 00:28:34,180 --> 00:28:37,060 S1: if the most I want to own in my portfolio 546 00:28:37,060 --> 00:28:40,860 S1: in the gold category is 10%, and I think the 547 00:28:40,860 --> 00:28:43,180 S1: appropriate amount for some, you know, for most people is 548 00:28:43,180 --> 00:28:47,140 S1: between 5 and 10%. Let's say it's ten. Um, what 549 00:28:47,140 --> 00:28:50,100 S1: I like to think about is that first 5% is 550 00:28:50,100 --> 00:28:53,620 S1: what you might call or think about as your forever allocation, 551 00:28:53,620 --> 00:28:56,500 S1: and that's where you may actually take physical possession of 552 00:28:56,500 --> 00:28:59,820 S1: the gold. And you'd own it and you'd store it 553 00:28:59,820 --> 00:29:02,380 S1: maybe in a safe deposit box or a fireproof safe 554 00:29:02,380 --> 00:29:04,940 S1: in your home. You'd buy it. The plan is to 555 00:29:04,980 --> 00:29:09,380 S1: keep it for life, maybe pass it down that second 5%. 556 00:29:09,660 --> 00:29:12,100 S1: A great way to buy that is through what's called 557 00:29:12,100 --> 00:29:15,900 S1: an ETF. Um, so, you know, there are a number 558 00:29:15,900 --> 00:29:20,690 S1: of exchange traded funds, um, that you could choose from 559 00:29:20,890 --> 00:29:25,450 S1: that essentially have gold in a vault backing them. Um, 560 00:29:25,490 --> 00:29:28,330 S1: but they trade like a stock. So you can go 561 00:29:28,330 --> 00:29:31,890 S1: in and buy a gold exchange traded fund any day 562 00:29:31,890 --> 00:29:34,729 S1: that the New York Stock Exchange is open with the 563 00:29:34,730 --> 00:29:36,970 S1: click of a button. And there's a bunch of them. 564 00:29:36,970 --> 00:29:40,570 S1: The biggest one is gold. That's the symbol. It's the 565 00:29:40,570 --> 00:29:45,650 S1: largest physically backed gold ETF. Um, it's from the ETF 566 00:29:45,650 --> 00:29:49,730 S1: provider called spider. Um, there's another one called I, u, 567 00:29:49,770 --> 00:29:53,969 S1: which is from iShares. That's a lower cost alternative. Again 568 00:29:53,970 --> 00:29:57,010 S1: tracking physical gold. And then there's a number of them. 569 00:29:57,010 --> 00:30:00,770 S1: Granite shares has one. Goldman Sachs has one. But essentially 570 00:30:00,770 --> 00:30:04,290 S1: it moves in lockstep with the price of gold. Uh 571 00:30:04,290 --> 00:30:07,130 S1: but you don't have to take physical possession and it's 572 00:30:07,130 --> 00:30:09,530 S1: more liquid. You could sell it at any time with 573 00:30:09,530 --> 00:30:11,210 S1: the click of a button, as long as the markets 574 00:30:11,250 --> 00:30:15,410 S1: open and get the next trade. Um, and so between 575 00:30:15,410 --> 00:30:19,320 S1: the two, the physical versus the gold ETF. Uh, you know, 576 00:30:19,360 --> 00:30:23,160 S1: I think you could ratchet up your allocation to to 10%. Now, 577 00:30:23,200 --> 00:30:25,480 S1: I know, just based on the notes here from when 578 00:30:25,480 --> 00:30:29,000 S1: you called, is you're also interested in Bitcoin. And I 579 00:30:29,040 --> 00:30:31,120 S1: like to think about bitcoin, which by the way I 580 00:30:31,120 --> 00:30:34,280 S1: think has reached a mainstream status. And we could talk 581 00:30:34,280 --> 00:30:37,200 S1: about why that is if you're interested. I like to 582 00:30:37,200 --> 00:30:40,240 S1: think about that as a part of your gold allocation 583 00:30:40,440 --> 00:30:44,080 S1: because that's really where it fits. Um, and so perhaps 584 00:30:44,080 --> 00:30:47,120 S1: you take 2 or 3 or 4% of that 10% 585 00:30:47,360 --> 00:30:51,120 S1: and buy a Bitcoin ETF as well. And I think 586 00:30:51,120 --> 00:30:53,600 S1: that could be a way to go there. So hopefully 587 00:30:53,600 --> 00:30:55,400 S1: that gives you what you're looking for. More of your 588 00:30:55,400 --> 00:30:57,840 S1: questions coming up in the final segment. Stay with us. 589 00:31:05,960 --> 00:31:08,360 S1: We're so glad you've joined us for Faith and Finance 590 00:31:08,360 --> 00:31:11,080 S1: Live today. Here in our final segment, let me remind 591 00:31:11,080 --> 00:31:13,720 S1: you not to call in because we're not live today, 592 00:31:13,720 --> 00:31:16,510 S1: but we'd love for you to stick around and enjoy 593 00:31:16,510 --> 00:31:19,230 S1: the rest of the program. Let's go to Texas. Hi, Kathy. 594 00:31:19,270 --> 00:31:20,110 S1: How can I help you? 595 00:31:20,470 --> 00:31:24,510 S10: Thank you. I have recently retired and my husband will 596 00:31:24,510 --> 00:31:28,710 S10: be retiring probably sometime next year. But something that we 597 00:31:28,710 --> 00:31:33,990 S10: had started doing is using a credit card to charge 598 00:31:34,030 --> 00:31:38,830 S10: our groceries every month, and then we pay it off 599 00:31:38,950 --> 00:31:43,070 S10: before the finance charges kick in. And the reason we're 600 00:31:43,070 --> 00:31:46,550 S10: doing that is to get travel rewards points. 601 00:31:46,590 --> 00:31:46,990 S8: Yes. 602 00:31:47,030 --> 00:31:49,670 S10: And I was just wondering your thought on using a 603 00:31:49,670 --> 00:31:51,910 S10: credit card for things like that, or should we just 604 00:31:51,910 --> 00:31:55,870 S10: figure that into our budget monthly and just take the 605 00:31:55,870 --> 00:31:58,190 S10: money out of our budget instead of charging? 606 00:31:58,230 --> 00:32:01,990 S1: Yeah, no, I like that Kathy a lot. I'm not 607 00:32:01,990 --> 00:32:05,630 S1: someone who says you can't use credit cards. It's only 608 00:32:05,630 --> 00:32:08,790 S1: an issue when it becomes, you know, a problem because 609 00:32:08,790 --> 00:32:11,950 S1: you're not using the credit card for budget add items. 610 00:32:11,950 --> 00:32:13,910 S1: And so if you do, if you use them for 611 00:32:13,910 --> 00:32:17,070 S1: non budgeted items that are outside what you can afford. 612 00:32:17,110 --> 00:32:19,390 S1: Then that's when you start carrying a balance. But if 613 00:32:19,390 --> 00:32:23,030 S1: you're using them only for budgeted items and you're paying 614 00:32:23,030 --> 00:32:25,430 S1: it off in full at the end of the month, 615 00:32:25,670 --> 00:32:28,030 S1: then you're in great shape because to your point, you're 616 00:32:28,030 --> 00:32:30,150 S1: going to get the rewards. You're going to add the 617 00:32:30,150 --> 00:32:34,670 S1: convenience of being able to pay electronically. And then thirdly, 618 00:32:34,670 --> 00:32:37,790 S1: you've got the protections as well. So with a debit 619 00:32:37,790 --> 00:32:41,910 S1: card for instance, if the account was compromised you could 620 00:32:41,910 --> 00:32:45,190 S1: maybe get the money back. The problem is until they 621 00:32:45,190 --> 00:32:48,310 S1: resolve the issue, the money's gone out of your account. 622 00:32:48,350 --> 00:32:51,270 S1: Until the bank makes you whole with a credit card, 623 00:32:51,270 --> 00:32:54,390 S1: you just dispute the transaction and you never are out 624 00:32:54,390 --> 00:32:57,470 S1: the money, they take it from there. And so, you know, 625 00:32:57,510 --> 00:33:01,870 S1: there's there's some protections, there's flexibility, there's convenience. And when 626 00:33:01,870 --> 00:33:04,030 S1: you use it, for instance, with the Faith fi app, 627 00:33:04,270 --> 00:33:08,630 S1: you can connect those accounts and see those transactions come in, 628 00:33:08,670 --> 00:33:12,230 S1: actually have them go into your digital envelopes and and 629 00:33:12,230 --> 00:33:15,540 S1: monitor where you're at with each of your envelopes at 630 00:33:15,540 --> 00:33:17,580 S1: any point in the month. So for instance, with your 631 00:33:17,580 --> 00:33:20,460 S1: eating out envelope, if you have one, you could say, 632 00:33:20,460 --> 00:33:22,380 S1: where are we at? Well, we've got a week left 633 00:33:22,380 --> 00:33:25,100 S1: and the money's gone. So we're we're done for the month. 634 00:33:25,100 --> 00:33:27,700 S1: And you can make those decisions in real time. But 635 00:33:27,700 --> 00:33:29,900 S1: bottom line is, Kathy, no, I don't have any problem 636 00:33:29,900 --> 00:33:31,740 S1: with the way you all are doing it. The key 637 00:33:31,740 --> 00:33:36,740 S1: is only budgeted items. Pay it off in full, zero interest. Hey, 638 00:33:36,740 --> 00:33:40,420 S1: we appreciate your call today to Cleveland, Ohio. Lawrence. Go ahead. 639 00:33:40,940 --> 00:33:43,220 S11: Yes. Hello, Rob. Thank you very much for your program. 640 00:33:43,220 --> 00:33:45,780 S11: Greatly appreciate it. Here. Thank you. I'd like to ask 641 00:33:45,780 --> 00:33:47,940 S11: you I'd like to ask you a quick question. I 642 00:33:47,940 --> 00:33:50,540 S11: have a 401 here at work. I'm 67 years old, 643 00:33:50,540 --> 00:33:54,460 S11: and I'd like to withdraw money to purchase a car for, say, 644 00:33:54,500 --> 00:33:58,780 S11: $25,000 versus, you know, taking a loan, paying interest. Is 645 00:33:58,780 --> 00:34:00,500 S11: that something that I'm allowed to do, or do I 646 00:34:00,500 --> 00:34:02,300 S11: have to talk to the plan administrator, or is that 647 00:34:02,300 --> 00:34:05,420 S11: up to the administrator or is it legal? Where are they? Yeah, 648 00:34:05,460 --> 00:34:06,140 S11: I can. 649 00:34:06,260 --> 00:34:08,140 S1: You can take us. So you're talking about taking a 650 00:34:08,140 --> 00:34:10,060 S1: loan from the 401 K to buy the car. 651 00:34:10,500 --> 00:34:12,090 S11: Or just withdraw the money? 652 00:34:12,370 --> 00:34:12,770 S8: Yeah. 653 00:34:12,770 --> 00:34:15,169 S1: If you withdraw the money, it's going to be taxable. 654 00:34:15,170 --> 00:34:17,969 S1: You're over 59.5, so you're not going to have the penalty. 655 00:34:17,969 --> 00:34:19,969 S1: But 100% of what you take out is going to 656 00:34:19,969 --> 00:34:22,370 S1: be taxable. So it would be added to your taxable 657 00:34:22,370 --> 00:34:25,210 S1: income for the year. And then the other piece is 658 00:34:25,370 --> 00:34:28,130 S1: which is perhaps the bigger issue is just the opportunity cost. 659 00:34:28,130 --> 00:34:31,890 S1: Because now that money's not available to compound and grow, 660 00:34:32,090 --> 00:34:34,609 S1: you know, for the next, you know, 20 years while 661 00:34:34,610 --> 00:34:37,129 S1: you're between now and when the Lord calls you home. Now, 662 00:34:37,130 --> 00:34:39,290 S1: you could also say, listen, I've worked, you know, my 663 00:34:39,290 --> 00:34:41,730 S1: whole life. I've got plenty of assets. And, you know, 664 00:34:41,770 --> 00:34:44,129 S1: we haven't gotten into the rest of your situation in 665 00:34:44,130 --> 00:34:45,930 S1: terms of how you're going to, you know, cover your 666 00:34:45,930 --> 00:34:49,089 S1: income in this season of life. But if you've got 667 00:34:49,090 --> 00:34:50,969 S1: enough assets and you say, listen, I just want to 668 00:34:50,969 --> 00:34:53,450 S1: take this out, pay the tax on it, buy the car. Well, 669 00:34:53,450 --> 00:34:55,890 S1: that's fine, but we just need to factor this in 670 00:34:55,930 --> 00:34:58,890 S1: to okay. What other assets do you have and how 671 00:34:58,930 --> 00:35:01,930 S1: are you going to fund your lifestyle expenses moving forward? 672 00:35:02,090 --> 00:35:05,089 S1: I'd rather you, you know, do that without taking the 673 00:35:05,090 --> 00:35:06,810 S1: money out of the 41K just so we can keep 674 00:35:06,810 --> 00:35:09,810 S1: as much growing for you as possible. But if you 675 00:35:09,810 --> 00:35:11,640 S1: have enough in the way of assets, that may be 676 00:35:11,640 --> 00:35:13,720 S1: perfectly appropriate. Does that make sense? 677 00:35:14,560 --> 00:35:16,840 S11: Yeah. I don't have enough in assets. I mean, I'm 678 00:35:16,880 --> 00:35:19,479 S11: going to be I'm going to be stretched thin. Okay. 679 00:35:19,560 --> 00:35:21,799 S11: You know, so it'd probably be better to leave it, 680 00:35:21,840 --> 00:35:23,399 S11: leave the money in there like you say, and let 681 00:35:23,400 --> 00:35:23,960 S11: it grow. 682 00:35:24,320 --> 00:35:25,240 S8: I think so. 683 00:35:25,280 --> 00:35:26,960 S1: And then the question is, okay, now how do we 684 00:35:27,000 --> 00:35:28,640 S1: solve for the car? And do you have a car 685 00:35:28,640 --> 00:35:30,919 S1: right now? I mean, the cheapest car you can own 686 00:35:30,920 --> 00:35:33,120 S1: is usually the one you have right now. And you 687 00:35:33,160 --> 00:35:35,960 S1: continue to drive it, you know, if it becomes cost 688 00:35:35,960 --> 00:35:38,399 S1: prohibitive and you need to buy a new one, you know, 689 00:35:38,440 --> 00:35:42,080 S1: maybe you find something for 18,000 and you take a, 690 00:35:42,120 --> 00:35:44,120 S1: you know, a small loan out and, you know, you 691 00:35:44,160 --> 00:35:46,320 S1: try to just pay on it as quick as you can. 692 00:35:46,480 --> 00:35:48,560 S1: But I would try to preserve as much of that 693 00:35:48,560 --> 00:35:51,719 S1: 401 K money as possible, just because it sounds like 694 00:35:51,719 --> 00:35:53,799 S1: you're going to need that. And so let's keep that 695 00:35:53,800 --> 00:35:56,360 S1: money growing for you. We appreciate your call today, Lawrence. 696 00:35:56,360 --> 00:35:59,680 S1: Hopefully that gives you a few ideas. Let's go to Louisiana. Doug. 697 00:35:59,719 --> 00:36:00,280 S1: Go ahead. 698 00:36:01,200 --> 00:36:05,719 S12: Yes. Yes, sir. Very quickly, I, I retired and I 699 00:36:05,719 --> 00:36:09,670 S12: have some money with Edward Jones. been with them like 700 00:36:09,670 --> 00:36:12,750 S12: 13 years and this year they changed their strategy. They 701 00:36:12,750 --> 00:36:16,989 S12: want me to take 1.2% of my whole portfolio, which 702 00:36:16,989 --> 00:36:22,110 S12: is around $1 million, and and pay that fee instead 703 00:36:22,110 --> 00:36:27,030 S12: of making transactions and getting, you know, their their cut 704 00:36:27,030 --> 00:36:30,870 S12: off of each transaction. They just say, just take 1.2% 705 00:36:30,870 --> 00:36:34,710 S12: of your portfolio. We'll take that out every month. And 706 00:36:34,710 --> 00:36:36,390 S12: I'm trying to I said, okay, I'm going to go 707 00:36:36,430 --> 00:36:39,830 S12: with what you want. And I'm just concerned about recouping 708 00:36:39,830 --> 00:36:44,310 S12: my fees and then making enough profit to make it worthwhile. 709 00:36:44,350 --> 00:36:46,110 S12: Just see if you think it's a good idea. 710 00:36:46,430 --> 00:36:47,069 S8: Yeah, I'm. 711 00:36:47,110 --> 00:36:48,750 S1: On board with that, Doug. You know, I mean, that 712 00:36:48,750 --> 00:36:53,510 S1: would be normal and customary. That 1.2% management fee based 713 00:36:53,510 --> 00:36:56,910 S1: on the assets under management, which puts the emphasis on 714 00:36:56,910 --> 00:36:58,750 S1: growing the account because the only way they get a 715 00:36:58,750 --> 00:37:02,230 S1: raise is if your account goes up. Um, and you know, 716 00:37:02,270 --> 00:37:04,590 S1: you're going to get active management for that. So it's 717 00:37:04,590 --> 00:37:09,190 S1: less about each transaction and more about the advisors interests 718 00:37:09,190 --> 00:37:12,750 S1: being aligned with yours to give ongoing oversight to protect 719 00:37:12,750 --> 00:37:15,750 S1: and grow what you have, and having that kind of 720 00:37:16,030 --> 00:37:20,629 S1: expertise involved in making those investment selections, I think should 721 00:37:20,670 --> 00:37:24,590 S1: more than offset the cost of the the advice over 722 00:37:24,590 --> 00:37:29,029 S1: time and the management at 1.2%. And I think, you know, 723 00:37:29,070 --> 00:37:31,630 S1: you've built quite a nest egg here. And yes, you know, 724 00:37:31,670 --> 00:37:34,950 S1: $12,000 is a lot of money. But at the same time, 725 00:37:34,989 --> 00:37:37,630 S1: you know, I wouldn't want you to put that on autopilot. 726 00:37:37,670 --> 00:37:41,230 S1: I wouldn't want you to make emotional decisions on buying 727 00:37:41,270 --> 00:37:44,590 S1: and selling. I'd rather you have a rules based approach 728 00:37:44,590 --> 00:37:47,310 S1: with somebody who, you know, really can give careful attention 729 00:37:47,310 --> 00:37:50,390 S1: to this on an ongoing basis. So I'm a fan 730 00:37:50,390 --> 00:37:53,070 S1: of this type of approach where you pay a fixed 731 00:37:53,070 --> 00:37:56,870 S1: percentage based on the assets under management. And Edward Jones 732 00:37:56,910 --> 00:38:00,390 S1: is a world class broker dealer. And as long as 733 00:38:00,390 --> 00:38:02,790 S1: you have an advisor that shares your values and that 734 00:38:02,790 --> 00:38:05,230 S1: you have trust with, and that can really build a 735 00:38:05,230 --> 00:38:08,460 S1: portfolio that reflects your goals and values, then you know 736 00:38:08,500 --> 00:38:09,180 S1: I'm on board. 737 00:38:10,500 --> 00:38:14,020 S12: Okay, well, that gives me some confidence. Thank you so much. 738 00:38:14,060 --> 00:38:16,859 S1: All right. Thanks for your call, Doug. Lord bless you, sir. Uh, 739 00:38:16,860 --> 00:38:19,580 S1: you know, one of the questions that, uh, John asked 740 00:38:19,580 --> 00:38:22,020 S1: earlier when I connected with him off the air, he 741 00:38:22,020 --> 00:38:25,739 S1: asked a great question. Uh, that perhaps is something you're 742 00:38:25,739 --> 00:38:30,700 S1: thinking about. He says what? What gives Bitcoin value? I mean, 743 00:38:30,739 --> 00:38:33,700 S1: if it's something that's completely digital, I can't touch it 744 00:38:33,700 --> 00:38:35,779 S1: or hold it in my hand. What in the world 745 00:38:36,219 --> 00:38:39,180 S1: gives it any kind of value? And you know, the 746 00:38:39,180 --> 00:38:42,620 S1: answer to that is really because people agree it has value, 747 00:38:43,420 --> 00:38:46,620 S1: which is not unlike paper money. That's not backed by 748 00:38:46,660 --> 00:38:51,739 S1: gold anymore. It's a fiat currency, uh, gift cards, airline miles, 749 00:38:51,739 --> 00:38:54,339 S1: even the dollar bill in your wallet. None of those 750 00:38:54,340 --> 00:38:58,260 S1: have value by themselves. We can't eat them or build 751 00:38:58,260 --> 00:39:02,300 S1: with them. They're useful because people trust and accept them. 752 00:39:02,660 --> 00:39:06,890 S1: And as we think about Bitcoin. You know, the reason 753 00:39:06,890 --> 00:39:10,930 S1: that it has the properties of, you know, fungible money 754 00:39:10,930 --> 00:39:14,650 S1: is that because first of all, it has a limited supply. Well, 755 00:39:15,010 --> 00:39:19,650 S1: there will ever only be about 21 million bitcoins. So 756 00:39:19,650 --> 00:39:25,570 S1: anything that is scarce has potential value. Think land rare collectibles. Second, 757 00:39:25,570 --> 00:39:28,529 S1: people want to use it. Bitcoin lets people transfer money 758 00:39:28,530 --> 00:39:32,290 S1: globally quickly and without a bank. So if people want 759 00:39:32,290 --> 00:39:35,810 S1: something and it scarce, well then it generally becomes valuable. 760 00:39:36,010 --> 00:39:38,650 S1: I think the third kind of big idea here on 761 00:39:38,690 --> 00:39:42,330 S1: what gives Bitcoin value is the network keeps it secure. 762 00:39:42,810 --> 00:39:46,090 S1: So you've got millions of computers that verify and protect 763 00:39:46,090 --> 00:39:49,569 S1: every transaction. Nobody can change the record or print more 764 00:39:49,570 --> 00:39:53,290 S1: Bitcoin or control it for everyone else. And that security 765 00:39:53,489 --> 00:39:58,450 S1: and independence are attractive to many. You know, a helpful 766 00:39:58,450 --> 00:40:02,890 S1: comparison might be why does a baseball card sell for $1,000? Well, 767 00:40:03,000 --> 00:40:06,320 S1: because it's rare and somebody wants it. If people stop 768 00:40:06,320 --> 00:40:09,160 S1: wanting it, the value drops. If more are printed, the 769 00:40:09,160 --> 00:40:12,080 S1: value drops. Well, Bitcoin kind of works the same way. 770 00:40:12,080 --> 00:40:16,600 S1: The scarcity gives it potential value and then the demand 771 00:40:16,719 --> 00:40:21,160 S1: gives it real value. Now it has gone mainstream. And 772 00:40:21,160 --> 00:40:23,799 S1: I think Bitcoin clearly stands apart from the rest of 773 00:40:23,800 --> 00:40:28,440 S1: the crypto industry. It's reached critical mass. It appears to 774 00:40:28,440 --> 00:40:31,719 S1: be here to stay uh, largely due because of the 775 00:40:31,719 --> 00:40:36,480 S1: regulatory environment that has completely reversed from being hostile to 776 00:40:36,520 --> 00:40:42,200 S1: being welcoming. Uh, we've also seen a shift in terms of, uh, 777 00:40:42,200 --> 00:40:47,520 S1: the approval of Bitcoin ETFs, which has opened the door 778 00:40:47,520 --> 00:40:51,240 S1: to institutional adoption, which means big players with big money 779 00:40:51,239 --> 00:40:55,000 S1: and influence are now allocating to Bitcoin. And a lot 780 00:40:55,000 --> 00:40:58,520 S1: of people like to think about it as digital gold, 781 00:40:58,520 --> 00:41:02,280 S1: because it has a lot of the characteristics of gold. 782 00:41:02,280 --> 00:41:05,080 S1: It's a store of value that protects your purchasing power 783 00:41:05,080 --> 00:41:08,680 S1: against the constant debasement of government currencies. And I know 784 00:41:08,680 --> 00:41:11,279 S1: that may sound crazy to call an asset that, you know, 785 00:41:11,320 --> 00:41:14,840 S1: has the volatility of Bitcoin a store of value. But again, 786 00:41:14,840 --> 00:41:19,840 S1: with the scarcity that's built into its DNA, it has, uh, 787 00:41:19,840 --> 00:41:23,160 S1: you know, that, uh, you know, that power, uh, to 788 00:41:23,200 --> 00:41:26,880 S1: act like and really emulate gold. So I think for 789 00:41:26,920 --> 00:41:29,359 S1: that reason, a lot of people are thinking about it 790 00:41:29,360 --> 00:41:32,239 S1: as a part of their gold allocation. If you're going 791 00:41:32,239 --> 00:41:35,880 S1: to have 10% in gold, maybe you take two, three, 4% 792 00:41:35,880 --> 00:41:38,680 S1: and move it over to Bitcoin. So hopefully that answers 793 00:41:38,680 --> 00:41:40,879 S1: a few questions from some of you out there wondering 794 00:41:40,880 --> 00:41:43,399 S1: the same thing. Hey, before I wrap up today, let 795 00:41:43,400 --> 00:41:45,040 S1: me mention here at the end of the year, this 796 00:41:45,040 --> 00:41:47,839 S1: is a really important time for us to hear from you. 797 00:41:47,840 --> 00:41:51,120 S1: Faith V is listener supported. This program doesn't come to 798 00:41:51,120 --> 00:41:53,920 S1: you each day without your support. So if you love 799 00:41:53,920 --> 00:41:57,040 S1: the program, you've found something helpful or valuable. Now's a 800 00:41:57,040 --> 00:41:59,839 S1: great time for us to hear from you. And we're 801 00:41:59,840 --> 00:42:02,270 S1: also going to be able to double every gift. We've 802 00:42:02,270 --> 00:42:06,270 S1: got some friends that have put up up to 175,000 803 00:42:06,310 --> 00:42:08,989 S1: to double every gift until we reach that level. That's 804 00:42:08,989 --> 00:42:11,430 S1: going to help us finish the year strong. And every 805 00:42:11,430 --> 00:42:12,989 S1: gift between now and the end of the year is 806 00:42:12,989 --> 00:42:14,710 S1: going to ensure that you get a copy of my 807 00:42:14,710 --> 00:42:18,950 S1: new devotional, Our Ultimate Treasure. I'm so excited. I'm going 808 00:42:18,950 --> 00:42:20,870 S1: to invite you to go on a 21 day journey 809 00:42:20,870 --> 00:42:23,989 S1: with us, using the devotional starting at the first of 810 00:42:23,989 --> 00:42:26,669 S1: the year. So would you consider a gift today? Just 811 00:42:26,670 --> 00:42:32,270 S1: go ahead and jump over to faith. That's faith for. 812 00:42:34,590 --> 00:42:39,350 S1: Every gift doubled right now. Give thanks in advance. Thanks 813 00:42:39,350 --> 00:42:42,510 S1: to my team today Amy, Dan, Clara and Jim. Thank 814 00:42:42,550 --> 00:42:44,950 S1: you for being here as well. Faith and Finance Live 815 00:42:44,950 --> 00:42:48,270 S1: is a partnership between Moody Radio and Faith five. Hope 816 00:42:48,270 --> 00:42:49,830 S1: you have a great rest of your day and come 817 00:42:49,830 --> 00:42:51,830 S1: back and join us next time. We'll see you then. 818 00:42:51,830 --> 00:42:52,310 S1: Bye bye.