1 00:00:09,920 --> 00:00:12,639 S1: Kids are always watching, especially when it comes to how 2 00:00:12,640 --> 00:00:16,800 S1: we handle money. Hi, I'm Rob West. Every purchase, every 3 00:00:16,840 --> 00:00:21,040 S1: act of generosity, every moment of contentment quietly shapes how 4 00:00:21,040 --> 00:00:24,239 S1: our children learn to view God's provision. Today, we'll look 5 00:00:24,239 --> 00:00:28,160 S1: at five practical ways to build a biblical financial foundation 6 00:00:28,160 --> 00:00:31,520 S1: for the next generation. And John Cortinas joins us to 7 00:00:31,560 --> 00:00:34,200 S1: help unpack them. And then it's on to your calls 8 00:00:34,200 --> 00:00:41,000 S1: at 800 525 7000. That's 800 525 7000. This is 9 00:00:41,000 --> 00:00:47,000 S1: faith and finance. Live. Biblical wisdom for your financial decisions. Well, 10 00:00:47,000 --> 00:00:49,360 S1: it's always a joy to have John Cortinez with us 11 00:00:49,360 --> 00:00:52,200 S1: as the Director of Partnerships and Growth at the MacLellan 12 00:00:52,200 --> 00:00:55,920 S1: Foundation and a trusted Faith VI contributor. John helps us 13 00:00:55,960 --> 00:00:59,279 S1: see how God's truth speaks into every part of our 14 00:00:59,400 --> 00:01:03,160 S1: financial lives, and that certainly includes how we shape our 15 00:01:03,160 --> 00:01:06,080 S1: kids and their financial foundation. John, great to have you 16 00:01:06,080 --> 00:01:06,880 S1: back with us. 17 00:01:06,920 --> 00:01:08,640 S2: Good to be here with you, Rob. Thank you. 18 00:01:08,959 --> 00:01:11,319 S1: John, your article in the latest issue of our Faithful 19 00:01:11,319 --> 00:01:15,040 S1: Steward magazine highlights how families can build a strong financial 20 00:01:15,040 --> 00:01:18,959 S1: foundation for their children. And you begin with that rich 21 00:01:18,959 --> 00:01:24,040 S1: passage from Deuteronomy six on diligently teaching the next generation. 22 00:01:24,200 --> 00:01:26,319 S1: I'd love for you to unpack that a bit, and 23 00:01:26,319 --> 00:01:30,640 S1: how that passage guides our approach to financial discipleship at home. 24 00:01:31,040 --> 00:01:34,520 S2: Well, that's right, Rob. In Deuteronomy six seven we read, 25 00:01:34,760 --> 00:01:37,720 S2: repeat them again and again to your children. Talk about 26 00:01:37,720 --> 00:01:39,400 S2: them when you are at home and when you are 27 00:01:39,400 --> 00:01:41,640 S2: on the road, when you're going to bed and when 28 00:01:41,640 --> 00:01:45,160 S2: you're getting up. And this passage reminds us that teaching 29 00:01:45,160 --> 00:01:48,400 S2: our kids about God is an all day, everyday calling. 30 00:01:48,400 --> 00:01:52,640 S2: And that certainly includes financial discipleship. So this shouldn't be, 31 00:01:52,640 --> 00:01:55,080 S2: in my mind, a lesson that we give once, or 32 00:01:55,080 --> 00:01:57,320 S2: a class we have our kids take. It's actually the 33 00:01:57,320 --> 00:01:59,290 S2: way we live day by day, and the way we 34 00:01:59,290 --> 00:02:02,770 S2: explain God's ways of handling faith and finances to our 35 00:02:02,770 --> 00:02:06,130 S2: kids or grandkids. Money is actually one of the most 36 00:02:06,130 --> 00:02:09,530 S2: tangible ways that we have to disciple our children, and 37 00:02:09,530 --> 00:02:12,290 S2: these verses just remind us that that faithful teaching happens 38 00:02:12,290 --> 00:02:14,930 S2: in rhythm and relationship over time with love. 39 00:02:15,610 --> 00:02:17,329 S1: You know, John, it's interesting. I want to camp out 40 00:02:17,330 --> 00:02:19,650 S1: there just for a second because, you know, a lot 41 00:02:19,650 --> 00:02:21,770 S1: of people will resonate with the idea that, yeah, we 42 00:02:21,770 --> 00:02:25,049 S1: need to teach our kids financial literacy. The dangers of 43 00:02:25,050 --> 00:02:28,970 S1: debt and the power of compound interest and living within 44 00:02:28,970 --> 00:02:32,050 S1: your means. But this idea, this statement that you just made, 45 00:02:32,050 --> 00:02:34,690 S1: that money is the most one of the most tangible 46 00:02:34,690 --> 00:02:37,769 S1: ways to disciple our children. That may be a new 47 00:02:37,770 --> 00:02:39,170 S1: idea for people, huh? 48 00:02:39,490 --> 00:02:44,010 S2: Absolutely. You know, I think, you know, kids absorb values 49 00:02:44,010 --> 00:02:46,850 S2: before they can balance a checkbook. And so all those 50 00:02:46,850 --> 00:02:49,930 S2: mechanics of money, like you said, that's super important. But 51 00:02:49,930 --> 00:02:52,530 S2: the heart of a steward is far more critical. And 52 00:02:52,530 --> 00:02:55,570 S2: so I'd say let's focus on that. Um, what our 53 00:02:55,570 --> 00:02:58,609 S2: kids see and feel about money. As we know this 54 00:02:58,610 --> 00:03:00,609 S2: is true for adults too. It's going to influence and 55 00:03:00,610 --> 00:03:03,930 S2: interact with their heart posture toward God. So as parents 56 00:03:03,930 --> 00:03:06,850 S2: or mentors, when we can model trust and gratitude and 57 00:03:06,850 --> 00:03:10,090 S2: generosity around our money journey, those lessons are going to 58 00:03:10,090 --> 00:03:13,370 S2: sink really deep for our kids. And the goal here again, 59 00:03:13,410 --> 00:03:16,730 S2: we want them to have the hard financial skills eventually. 60 00:03:16,730 --> 00:03:19,090 S2: But first of all, let's focus on hearts that love 61 00:03:19,130 --> 00:03:22,210 S2: God more than possessions and find joyful contentment. 62 00:03:22,490 --> 00:03:25,770 S1: Oh, that is so well said, John. You highlight the 63 00:03:25,770 --> 00:03:30,210 S1: power of storytelling, something of course Jesus used constantly. So 64 00:03:30,330 --> 00:03:34,210 S1: how can we as parents share our own money stories 65 00:03:34,210 --> 00:03:37,330 S1: to form our children's understanding in this area? 66 00:03:37,370 --> 00:03:39,330 S2: Oh well, this is great. You know, even in another 67 00:03:39,330 --> 00:03:42,850 S2: place in Scripture, second Corinthians eight, Paul is teaching about 68 00:03:42,850 --> 00:03:45,650 S2: money to the Corinthians, and he tells a money story 69 00:03:45,650 --> 00:03:49,610 S2: from the Macedonians. So these money stories move our hearts, 70 00:03:50,130 --> 00:03:52,450 S2: you know, rather than telling kids, hey, it's important to 71 00:03:52,490 --> 00:03:55,380 S2: always have some cash on hand. Well, that's true and 72 00:03:55,380 --> 00:03:58,100 S2: that's good. But why not tell them that crazy story 73 00:03:58,100 --> 00:04:00,460 S2: about how you got stranded one time with no cash, 74 00:04:00,460 --> 00:04:02,500 S2: and what you learned the hard way? Yeah, I think 75 00:04:02,500 --> 00:04:06,140 S2: that'd be a lot more memorable. And similarly, instead of saying, 76 00:04:06,180 --> 00:04:08,260 S2: you know, we've got to trust God with our money. Well, 77 00:04:08,260 --> 00:04:10,900 S2: that's true, but what's even more powerful is to say 78 00:04:10,900 --> 00:04:13,060 S2: to our kids, you know, last year we had to 79 00:04:13,100 --> 00:04:16,500 S2: trust God more than ever financially because here's what's happened. 80 00:04:16,660 --> 00:04:18,980 S2: And tell that story of how God showed up, how 81 00:04:18,980 --> 00:04:22,220 S2: we sought to be faithful. And in fact, at an 82 00:04:22,220 --> 00:04:24,700 S2: age appropriate level, I would be honest with our kids 83 00:04:24,700 --> 00:04:28,420 S2: about seasons of sacrifice or maybe debt we shouldn't have 84 00:04:28,420 --> 00:04:30,260 S2: had and how we got out of that, or even 85 00:04:30,260 --> 00:04:33,820 S2: scary generosity that God called us to. Those stories are 86 00:04:33,820 --> 00:04:36,700 S2: going to tie our everyday money decisions back to God's 87 00:04:36,700 --> 00:04:38,700 S2: ongoing faithfulness in our lives. 88 00:04:39,020 --> 00:04:41,020 S1: Boy, that is so good! John, have you seen that 89 00:04:41,020 --> 00:04:43,820 S1: in your own kids lives as you've engaged them around 90 00:04:43,820 --> 00:04:44,940 S1: some of these stories? 91 00:04:45,100 --> 00:04:47,060 S2: Oh, it's been so good. And, you know, I've found 92 00:04:47,060 --> 00:04:51,620 S2: that as we just talk our way through our daily stewardship, 93 00:04:51,779 --> 00:04:54,300 S2: our kids start asking us questions about money, which is great. 94 00:04:54,339 --> 00:04:56,020 S2: And so it becomes a two way street. 95 00:04:56,339 --> 00:04:58,580 S1: Yeah, no doubt about it. Well, we're going to continue 96 00:04:58,580 --> 00:05:02,779 S1: with this conversation after the break and get even more practical. 97 00:05:02,820 --> 00:05:06,540 S1: How can you lean into this opportunity? Remember, more is 98 00:05:06,540 --> 00:05:10,060 S1: caught than taught. The question is, what are we as parents, 99 00:05:10,060 --> 00:05:13,420 S1: modeling as it relates to money? Because this is one 100 00:05:13,420 --> 00:05:16,380 S1: of the primary issues. Your financial journey is a key 101 00:05:16,420 --> 00:05:20,500 S1: way God shapes your spiritual journey. John Cortinas here today 102 00:05:20,500 --> 00:05:23,460 S1: we're talking about discipling our kids in the area of money. 103 00:05:23,460 --> 00:05:40,739 S1: We'll be right back. I'm sure you know, kids are 104 00:05:40,740 --> 00:05:44,420 S1: always watching, and that's especially true when it comes to 105 00:05:44,460 --> 00:05:47,460 S1: how we handle money. Today, we're talking about how we 106 00:05:47,460 --> 00:05:52,190 S1: can build a financial foundation based on God's Word for 107 00:05:52,190 --> 00:05:54,550 S1: the next generation and to help us do that, as 108 00:05:54,550 --> 00:05:58,150 S1: my friend John Cortinez, he's director of partnerships and growth 109 00:05:58,150 --> 00:06:02,470 S1: at the MacLellan Foundation. He's also a trusted Faith V contributor, 110 00:06:02,470 --> 00:06:06,150 S1: and he's written an article for our recent edition of 111 00:06:06,150 --> 00:06:10,870 S1: the Faithful Steward magazine, highlighting how families can build a 112 00:06:10,870 --> 00:06:14,270 S1: strong financial foundation for their children. If you'd like to 113 00:06:14,310 --> 00:06:20,470 S1: receive every issue, go to Faith. To learn more. Uh, John, 114 00:06:20,470 --> 00:06:22,789 S1: set the stage for us again, for somebody who's just 115 00:06:22,790 --> 00:06:26,150 S1: joining the conversation. Why is it so critical that we 116 00:06:26,150 --> 00:06:28,870 S1: think about the role of money and our kids hearts, 117 00:06:28,990 --> 00:06:31,830 S1: and that we're modeling that from the earliest of ages? 118 00:06:32,190 --> 00:06:34,390 S2: Well, absolutely. Rob. You know, money is one of the 119 00:06:34,390 --> 00:06:37,430 S2: closest issues for our hearts. And it's so critical to 120 00:06:37,470 --> 00:06:40,470 S2: set the right posture for our kids. Before the break, 121 00:06:40,470 --> 00:06:43,470 S2: we talked about Deuteronomy six seven, that classic verse that 122 00:06:43,470 --> 00:06:46,070 S2: just says, talk about God's law when you're walking on 123 00:06:46,070 --> 00:06:48,230 S2: the way, when you're lying down, when you're getting up. 124 00:06:48,470 --> 00:06:51,270 S2: And we can apply that today of talking to our 125 00:06:51,270 --> 00:06:54,030 S2: kids about our financial journey and having a heart of 126 00:06:54,029 --> 00:06:57,190 S2: discipleship so that we can teach them God's ways and 127 00:06:57,190 --> 00:07:01,109 S2: ultimately help them draw closer to God through financial discipleship. 128 00:07:01,350 --> 00:07:03,310 S1: Yeah. That's right. Let's talk about one of those key 129 00:07:03,350 --> 00:07:06,790 S1: areas we want to emphasize when we're discipling our kids 130 00:07:06,790 --> 00:07:10,750 S1: in this area. And that is generosity. You encourage families 131 00:07:10,750 --> 00:07:14,110 S1: to celebrate generosity. Give us some thoughts on what that 132 00:07:14,110 --> 00:07:15,750 S1: looks like in everyday life. 133 00:07:15,910 --> 00:07:17,630 S2: Well, great. You know, in the big idea here is 134 00:07:17,630 --> 00:07:20,750 S2: not just to give, which is faithful and good and beautiful, 135 00:07:20,750 --> 00:07:24,030 S2: but to celebrate generosity, to model it for our kids 136 00:07:24,030 --> 00:07:26,750 S2: as an exciting and dynamic part of our life with 137 00:07:26,750 --> 00:07:29,750 S2: money and God that our kids can catch a vision for. 138 00:07:30,030 --> 00:07:32,230 S2: So here's just a couple ideas on this. One would 139 00:07:32,230 --> 00:07:35,750 S2: be maybe once per year, have a nice family meal 140 00:07:35,750 --> 00:07:38,430 S2: where you focus with your kids on all the giving 141 00:07:38,430 --> 00:07:41,590 S2: that you've done that year. What organizations have you supported? 142 00:07:41,590 --> 00:07:43,950 S2: Your kids may not even know about that, including your 143 00:07:43,950 --> 00:07:46,590 S2: local church, and then let your kids ask questions about 144 00:07:46,590 --> 00:07:48,510 S2: them all. Maybe you can play a video from one 145 00:07:48,600 --> 00:07:51,560 S2: of those ministries that's really compelling. Tell a great story 146 00:07:51,560 --> 00:07:54,440 S2: of impact, and it's an awesome opportunity to just celebrate 147 00:07:54,440 --> 00:07:57,440 S2: and thank God together, that your family has been a 148 00:07:57,440 --> 00:08:00,760 S2: conduit of blessing for the world. And I would celebrate 149 00:08:00,760 --> 00:08:03,120 S2: not just the amount like, hey, we're impressed with how 150 00:08:03,120 --> 00:08:05,800 S2: much money we gave. No, actually, the important part is 151 00:08:05,800 --> 00:08:08,640 S2: the heart and the purpose behind each gift. So that's 152 00:08:08,640 --> 00:08:11,400 S2: one big idea. Let me give you a smaller tactic 153 00:08:11,440 --> 00:08:13,840 S2: as well. One thing my family likes to do if 154 00:08:13,840 --> 00:08:15,440 S2: we're going to make a really big gift, you know, 155 00:08:15,480 --> 00:08:18,480 S2: everything's electronic now. So maybe it's happening on a laptop, 156 00:08:18,680 --> 00:08:21,800 S2: but we'll actually gather the kids around the laptop, pray 157 00:08:21,800 --> 00:08:24,480 S2: over the gift, and count down together until we press 158 00:08:24,480 --> 00:08:26,840 S2: the give button. And that's a way to take kind 159 00:08:26,840 --> 00:08:29,360 S2: of that digital giving world that we live in. But 160 00:08:29,360 --> 00:08:31,920 S2: let's make it a little more tactile so that we 161 00:08:31,920 --> 00:08:33,160 S2: can enjoy it together. 162 00:08:33,360 --> 00:08:36,760 S1: Oh, that is a fabulous idea. Uh, John, one of 163 00:08:36,760 --> 00:08:40,960 S1: the things we see in Scripture is just celebrating milestones 164 00:08:40,960 --> 00:08:44,600 S1: and remembering God's faithfulness. And I appreciate how you draw 165 00:08:44,600 --> 00:08:48,960 S1: attention to ordinary milestones. paying off a mortgage. Saving for 166 00:08:48,960 --> 00:08:53,440 S1: a trip, hitting a goal as moments loaded with teaching potential. 167 00:08:53,440 --> 00:08:56,160 S1: So talk to our listeners today about how they can 168 00:08:56,160 --> 00:08:59,560 S1: use those experiences as opportunities for discipleship. 169 00:08:59,720 --> 00:09:02,280 S2: That's great. Well, you know, everything that we do in life, 170 00:09:02,280 --> 00:09:04,280 S2: of course, as we know as adults has a money 171 00:09:04,280 --> 00:09:07,959 S2: decision behind it. And so explaining to our kids the habits, 172 00:09:08,000 --> 00:09:11,800 S2: the patience, the prayer that made those milestones possible, you know, 173 00:09:11,840 --> 00:09:14,680 S2: just as a really practical example, if you buy a car. 174 00:09:15,040 --> 00:09:17,760 S2: Talk to your kids about how much cars cost and 175 00:09:17,960 --> 00:09:19,920 S2: you know you're praising God for the provision of a 176 00:09:19,920 --> 00:09:22,920 S2: vehicle on your driveway, but then, you know, let's say 177 00:09:22,920 --> 00:09:26,800 S2: you did the ideal scenario and paid cash for it. Well, 178 00:09:26,800 --> 00:09:28,840 S2: the car didn't just appear there. You know, you've been 179 00:09:28,840 --> 00:09:31,920 S2: saving hundreds or $1,000 a month for a few years, 180 00:09:31,920 --> 00:09:34,920 S2: and you can explain that to your kids. And that, again, 181 00:09:34,920 --> 00:09:37,240 S2: lays the foundation of the story where they go, oh, 182 00:09:37,280 --> 00:09:39,240 S2: if I want a car someday, I'm going to have 183 00:09:39,240 --> 00:09:42,000 S2: to save two. So with a grateful and humble heart 184 00:09:42,000 --> 00:09:45,890 S2: before God, we can also explain our stewardship process. and 185 00:09:45,890 --> 00:09:48,650 S2: I think that really lays a foundation for our kids. 186 00:09:49,530 --> 00:09:53,290 S1: That is so good. Let's talk about contentment. You make 187 00:09:53,290 --> 00:09:56,730 S1: a strong point about modeling contentment. We all want that 188 00:09:56,730 --> 00:09:59,770 S1: for our kids. Why is that so central to a 189 00:09:59,770 --> 00:10:01,689 S1: child's financial formation? 190 00:10:02,050 --> 00:10:04,810 S2: Well, you know, kids pick up on what truly satisfies 191 00:10:04,809 --> 00:10:07,570 S2: us and drives us. And I would just say watch 192 00:10:07,610 --> 00:10:10,130 S2: our language and our actions as the adults. You know, 193 00:10:10,170 --> 00:10:12,130 S2: we can't take our kids somewhere we haven't been. And 194 00:10:12,130 --> 00:10:15,410 S2: so hopefully we're walking in biblical contentment. But if we 195 00:10:15,450 --> 00:10:17,850 S2: watch ourselves, are we always talking about how we really 196 00:10:17,850 --> 00:10:20,370 S2: need a new phone or a better car, or wishing 197 00:10:20,370 --> 00:10:22,930 S2: we had a nicer, bigger house? And if your kids 198 00:10:22,929 --> 00:10:26,410 S2: hear that, that will rub off. But alternatively, if our 199 00:10:26,410 --> 00:10:29,010 S2: kids hear us thanking God for the provision of what 200 00:10:29,010 --> 00:10:31,410 S2: we have, even if it's not perfect, God has blessed 201 00:10:31,410 --> 00:10:33,890 S2: us with it. That is going to come through as 202 00:10:33,890 --> 00:10:37,890 S2: authentic contentment that will start to shape your kids attitude 203 00:10:37,890 --> 00:10:40,090 S2: around money and their own life journey. 204 00:10:40,410 --> 00:10:43,250 S1: Yeah, John, one of the things that is just, I think, 205 00:10:43,370 --> 00:10:48,130 S1: ravaging this younger generation is sports betting. We have an 206 00:10:48,130 --> 00:10:50,530 S1: article in the recent issue of Faithful Steward on this 207 00:10:50,530 --> 00:10:54,330 S1: very topic, but you draw a clear line between gambling 208 00:10:54,570 --> 00:10:58,650 S1: and investing. How can parents help their kids understand the difference? 209 00:10:58,929 --> 00:11:00,610 S2: Well, this is such a big deal, and I'm so 210 00:11:00,610 --> 00:11:04,330 S2: thankful that Faith fi is pointing to this issue. I'm 211 00:11:04,330 --> 00:11:06,810 S2: sure everybody out there has heard ads for sports betting 212 00:11:06,809 --> 00:11:09,890 S2: and they're all around. A Supreme Court case in 2018 213 00:11:09,929 --> 00:11:12,650 S2: made this legal in the US, and it's spreading state 214 00:11:12,650 --> 00:11:15,530 S2: by state. And I would just say this, younger men 215 00:11:15,530 --> 00:11:18,250 S2: are the prime targets of these companies and they prey 216 00:11:18,250 --> 00:11:20,970 S2: on them. It shows up in Proverbs one. It's talking 217 00:11:20,970 --> 00:11:25,170 S2: about evil fools and it says, let's swallow them alive 218 00:11:25,170 --> 00:11:27,850 S2: like the grave and whole like those who go down 219 00:11:27,850 --> 00:11:30,330 S2: to the pit. We will get all sorts of valuable 220 00:11:30,330 --> 00:11:34,210 S2: things and fill our houses with plunder. That is what 221 00:11:34,210 --> 00:11:37,809 S2: sports gambling companies are essentially saying about young men. And 222 00:11:37,809 --> 00:11:40,130 S2: research is showing that sports betting can change the way 223 00:11:40,130 --> 00:11:42,780 S2: your brain is wired. You're more likely to become a 224 00:11:42,780 --> 00:11:46,620 S2: gambling addict, especially the younger you start. And if you 225 00:11:46,620 --> 00:11:49,059 S2: listen to these ads and you get into this world, 226 00:11:49,059 --> 00:11:51,260 S2: they will try to convince you or your kids that 227 00:11:51,260 --> 00:11:53,460 S2: this is like investing, man. If you're smart, if you 228 00:11:53,460 --> 00:11:55,220 S2: know your team, you're going to make some money on 229 00:11:55,220 --> 00:11:57,980 S2: these bets you can place. So I'd say, let's teach 230 00:11:57,980 --> 00:12:00,700 S2: our kids this is a trap that will trap you 231 00:12:00,700 --> 00:12:03,579 S2: and consume you and your hard earned money. It's an 232 00:12:03,580 --> 00:12:06,940 S2: addiction that can kill. So that's the difference between investing 233 00:12:06,940 --> 00:12:09,300 S2: and gambling, right? We want to model for our kids 234 00:12:09,300 --> 00:12:13,180 S2: that real investing builds slowly over time and is expected 235 00:12:13,179 --> 00:12:17,380 S2: to gain value. But gambling plays on impulse and emotion, 236 00:12:17,380 --> 00:12:20,740 S2: and dopamine hits, and you're expecting to lose money if 237 00:12:20,740 --> 00:12:23,460 S2: you get in on the gambling. So don't let the 238 00:12:23,460 --> 00:12:25,980 S2: advertisers be the ones to tell your kids about sports 239 00:12:25,980 --> 00:12:29,460 S2: betting and lure them in. Take control of that conversation 240 00:12:29,500 --> 00:12:31,260 S2: yourself and protect your kids. 241 00:12:31,500 --> 00:12:34,020 S1: Yeah, that is really good. Now, when we talk about 242 00:12:34,020 --> 00:12:37,660 S1: the healthy ways of investing, you make this important point 243 00:12:37,660 --> 00:12:40,740 S1: that telling your kids that we're saving and investing for 244 00:12:40,860 --> 00:12:44,980 S1: their future is actually really impactful when it comes to 245 00:12:45,140 --> 00:12:47,260 S1: how we're shaping our kids. Why is that so important 246 00:12:47,260 --> 00:12:47,940 S1: in your view? 247 00:12:48,179 --> 00:12:50,140 S2: Oh man, when our kids know that we're saving for 248 00:12:50,140 --> 00:12:52,740 S2: their future in a very practical way, it says, hey, 249 00:12:52,780 --> 00:12:55,260 S2: I believe in you, you're going somewhere. And so I'm 250 00:12:55,260 --> 00:12:58,100 S2: planning ahead with you in mind. And they've actually done 251 00:12:58,100 --> 00:13:01,260 S2: some academic research on this about college. And when a 252 00:13:01,260 --> 00:13:04,100 S2: kid knows that their parents are saving for their future 253 00:13:04,100 --> 00:13:07,980 S2: college education, they're more likely to choose to go to college. 254 00:13:08,380 --> 00:13:11,179 S2: You say, why is that? Well, it builds trust and 255 00:13:11,179 --> 00:13:14,020 S2: a vision of hope for the future. And it also 256 00:13:14,020 --> 00:13:17,699 S2: models faithfulness. It shows our kids that stewardship is long term. 257 00:13:17,700 --> 00:13:21,100 S2: It's others centered, and it involves planning ahead. So I 258 00:13:21,100 --> 00:13:22,820 S2: think it's a really powerful thing when I say to 259 00:13:22,860 --> 00:13:25,339 S2: my kids, hey, I could I could buy something, I 260 00:13:25,340 --> 00:13:27,980 S2: want a sports car or some other toy, and that'd 261 00:13:28,020 --> 00:13:31,140 S2: be fun. But instead, I'm investing in your future needs 262 00:13:31,140 --> 00:13:33,420 S2: because I love you and I believe in you. 263 00:13:34,780 --> 00:13:37,060 S1: John. We're about out of time. What's one thought you'd 264 00:13:37,059 --> 00:13:38,979 S1: leave our listeners with on this topic? 265 00:13:39,059 --> 00:13:41,230 S2: Well, I just say, in the spirit of our whole conversation, 266 00:13:41,230 --> 00:13:44,430 S2: look for one teachable moment this week and explain to 267 00:13:44,429 --> 00:13:48,190 S2: your children the stewardship, the finances behind something in your life, 268 00:13:48,390 --> 00:13:51,390 S2: and just express your faith in God as you're walking 269 00:13:51,390 --> 00:13:53,429 S2: with him in your faith and financial journey. 270 00:13:54,070 --> 00:13:57,030 S1: Folks, if we want wise stewards tomorrow, we have to 271 00:13:57,070 --> 00:14:00,470 S1: model faithful stewardship today. John, this has been a gift. 272 00:14:00,470 --> 00:14:01,670 S1: Thanks for your time today. 273 00:14:01,710 --> 00:14:03,150 S2: Thanks so much, Rob. Appreciate you. 274 00:14:03,550 --> 00:14:06,870 S1: That's John Cortinas of the MacLellan Foundation. He's also the 275 00:14:06,870 --> 00:14:11,150 S1: author of five strategies for Shaping Kids Financial Foundation and 276 00:14:11,150 --> 00:14:15,070 S1: our latest issue of Faithful Steward, our quarterly print magazine 277 00:14:15,110 --> 00:14:17,710 S1: sent exclusively to Faith five partners. If you want to 278 00:14:17,710 --> 00:14:20,070 S1: learn more or become a Faith five partner, go to 279 00:14:20,110 --> 00:14:24,030 S1: Faith five today. We'll be right back. 280 00:14:38,990 --> 00:14:42,230 S3: The opinions offered during this program represent the personal or 281 00:14:42,230 --> 00:14:46,630 S3: professional opinions of the participants, given for informational purposes only. 282 00:14:46,950 --> 00:14:50,350 S3: Any information provided is not intended to replace advice from 283 00:14:50,350 --> 00:14:54,590 S3: a financial, medical, legal, or other professional who understands your 284 00:14:54,590 --> 00:14:56,150 S3: specific situation. 285 00:15:01,070 --> 00:15:02,750 S1: Hey, great to have you with us today on Faith 286 00:15:02,750 --> 00:15:05,230 S1: in Finance live, I'm Rob West. Well, in just a 287 00:15:05,230 --> 00:15:07,869 S1: moment we're going to begin taking your calls and questions 288 00:15:07,870 --> 00:15:14,550 S1: at number 800 525 7000. That's 800 525 7000. You 289 00:15:14,550 --> 00:15:17,030 S1: can call right now and our team will get you 290 00:15:17,030 --> 00:15:20,430 S1: in the queue. We'll get your financial question on the 291 00:15:20,430 --> 00:15:23,350 S1: air as quickly as we can. Whatever you're thinking about, 292 00:15:23,350 --> 00:15:25,830 S1: maybe it's getting on budget. And by the way, if 293 00:15:25,830 --> 00:15:28,470 S1: you haven't checked out the Faith V app, I really 294 00:15:28,470 --> 00:15:30,710 S1: major update coming in the next couple of weeks. So 295 00:15:30,710 --> 00:15:32,510 S1: now would be a great time to go ahead and 296 00:15:32,510 --> 00:15:34,830 S1: get yourself into the Faith V app. You can find 297 00:15:34,830 --> 00:15:38,000 S1: it in your app store, just search for Faith fi 298 00:15:38,360 --> 00:15:42,120 S1: or head to our website. Faith I just click app 299 00:15:42,120 --> 00:15:44,720 S1: at the top of the page. Um, or maybe you're 300 00:15:44,720 --> 00:15:46,720 S1: looking to pay down some debt here in the new year. 301 00:15:46,720 --> 00:15:51,040 S1: Invest for the future. Or perhaps to John Cortinas, uh, 302 00:15:51,040 --> 00:15:53,600 S1: topic here at the start of the program today. Maybe 303 00:15:53,600 --> 00:15:57,400 S1: you're thinking about how to shape the next generation, the 304 00:15:57,400 --> 00:16:01,640 S1: next steward living under your roof, helping, uh, our kids 305 00:16:01,640 --> 00:16:04,920 S1: and grandkids to understand God's heart as it relates to 306 00:16:04,960 --> 00:16:09,080 S1: money and how we can, uh, not only put financial 307 00:16:09,120 --> 00:16:12,920 S1: literacy best practices in place, but really understand the counsel 308 00:16:12,920 --> 00:16:15,920 S1: of Scripture in terms of our role in managing God's 309 00:16:15,920 --> 00:16:20,800 S1: resources and how it can be really a spiritual formation issue. 310 00:16:20,840 --> 00:16:23,960 S1: You know, the way we handle money is really an, uh, 311 00:16:23,960 --> 00:16:27,920 S1: it evidences what we value and what we trust. And 312 00:16:28,080 --> 00:16:29,960 S1: it has so much to do with our relationship with 313 00:16:29,960 --> 00:16:32,400 S1: the Lord. In fact, it can be one of those 314 00:16:32,560 --> 00:16:36,880 S1: primary competitors to ultimate devotion to God, who is our 315 00:16:36,880 --> 00:16:39,960 S1: ultimate treasure. So whatever's on your mind today, call right now. 316 00:16:39,960 --> 00:16:43,240 S1: We'd love to dive into your questions. Those the number 317 00:16:43,240 --> 00:16:48,040 S1: to get in on the conversation is 800 525 7000. 318 00:16:48,120 --> 00:16:52,080 S1: That's 800 525 7000. Now, before we head to the 319 00:16:52,080 --> 00:16:56,040 S1: phones in the news today, President Donald Trump's big, beautiful bill, 320 00:16:56,080 --> 00:17:01,560 S1: signed into law last July, introduces new Medicaid work requirements 321 00:17:01,560 --> 00:17:08,200 S1: for adults ages 19 to 64. Qualifying caregivers are exempt 322 00:17:08,200 --> 00:17:14,400 S1: from those rules. So in 2025, about 7.3 million Medicaid 323 00:17:14,400 --> 00:17:20,320 S1: beneficiaries ages 18 to 64 were family caregivers. That's according 324 00:17:20,359 --> 00:17:25,119 S1: to AARP. These caregivers provide an average of 35 hours 325 00:17:25,119 --> 00:17:29,960 S1: of unpaid care each week, and contribute an estimated 600 326 00:17:29,960 --> 00:17:35,810 S1: billion in unpaid care annually now. States have until January 1st, 327 00:17:35,850 --> 00:17:40,290 S1: 2027 to implement the new requirements, with a possible extension 328 00:17:40,290 --> 00:17:44,930 S1: to 2029. The law requires most beneficiaries to complete 80 329 00:17:44,930 --> 00:17:49,970 S1: hours per month of work or related activities, but caregivers 330 00:17:49,970 --> 00:17:54,170 S1: for children 13 or older or disabled individuals of any 331 00:17:54,210 --> 00:17:59,689 S1: age are exempt. Now, AARP is emphasizing that states really 332 00:17:59,690 --> 00:18:03,409 S1: need to think about how they implement and communicate these changes. 333 00:18:03,490 --> 00:18:08,090 S1: That's going to be critical to preventing coverage disruptions for caregivers, 334 00:18:08,210 --> 00:18:11,090 S1: many of whom are already stretched thin. So if you 335 00:18:11,090 --> 00:18:13,650 S1: find yourself in that situation, you might want to take 336 00:18:13,650 --> 00:18:16,410 S1: note of some changes that are coming down the pike. 337 00:18:16,690 --> 00:18:18,129 S1: All right, let's head to the phones. We're going to 338 00:18:18,130 --> 00:18:21,570 S1: begin today in the suburbs of Chicago. Michelle, you'll be 339 00:18:21,570 --> 00:18:22,770 S1: our first caller. Go ahead. 340 00:18:24,050 --> 00:18:27,449 S4: Yeah. Hi. Thanks for taking my call. Um, okay, so 341 00:18:27,490 --> 00:18:31,410 S4: I have a question about annuities. An annuity I purchased. 342 00:18:31,490 --> 00:18:32,970 S4: I don't even know. Whatever you call it, you put 343 00:18:32,970 --> 00:18:35,850 S4: your money into it. Um, sorry. I'm kind of nervous. 344 00:18:36,010 --> 00:18:41,290 S4: So the thing is, is I wasn't told everything what 345 00:18:41,609 --> 00:18:45,010 S4: an annuity entails. So I found out after I put 346 00:18:45,010 --> 00:18:47,810 S4: my money in, of course, which was too late, that 347 00:18:47,810 --> 00:18:50,570 S4: if I were to take money out or say, like, 348 00:18:50,609 --> 00:18:53,330 S4: change my mind, I'm going to invest it. There's a 349 00:18:53,330 --> 00:18:57,369 S4: huge penalty fee. And then I also found out that 350 00:18:57,410 --> 00:19:00,489 S4: in I can't touch it till I'm 72. And if 351 00:19:00,490 --> 00:19:01,929 S4: I do, you know, I could take a little bit 352 00:19:01,970 --> 00:19:06,570 S4: out but. And I'm 64 so at 72 which is, 353 00:19:06,609 --> 00:19:09,730 S4: you know, eight years from now or whatever it is, um, 354 00:19:10,170 --> 00:19:12,609 S4: if say, something happens to me and I, you know, 355 00:19:12,650 --> 00:19:16,090 S4: my kids are the beneficiary, they will get out exactly 356 00:19:16,090 --> 00:19:18,890 S4: what I put in. So the ten years it's sat there, 357 00:19:19,570 --> 00:19:21,850 S4: they're not going to get any benefit. And then when 358 00:19:21,850 --> 00:19:25,050 S4: I start taking it at 72, I'm not going to 359 00:19:25,050 --> 00:19:27,930 S4: really I mean, the benefit I get from it is 360 00:19:27,930 --> 00:19:31,580 S4: I think 1200 a month And, you know, if I 361 00:19:31,619 --> 00:19:33,860 S4: have to live to like 92 or something to, like, 362 00:19:33,900 --> 00:19:38,580 S4: actually get the benefit of what, how it grew. Otherwise, 363 00:19:38,820 --> 00:19:41,540 S4: if I cashed out, even then, at ten years, I 364 00:19:41,540 --> 00:19:44,620 S4: would get exactly what I put in. So I was 365 00:19:44,660 --> 00:19:47,100 S4: sort of bamboozled, which was my own fault. I didn't 366 00:19:47,100 --> 00:19:49,659 S4: look at all the the small print and really what 367 00:19:49,660 --> 00:19:52,980 S4: it entailed. And um, so now I'm like, I don't 368 00:19:52,980 --> 00:19:55,740 S4: know what to do. And when I looked at the fee, 369 00:19:55,980 --> 00:19:58,980 S4: it was like 17 grand to get it out. And 370 00:19:58,980 --> 00:20:01,939 S4: then when I asked somebody about it at one point, 371 00:20:01,980 --> 00:20:04,580 S4: the guy told me, well, yeah, that was his, um, 372 00:20:04,940 --> 00:20:07,140 S4: that was his fee, you know, that was what he 373 00:20:07,140 --> 00:20:10,580 S4: got paid for giving this company the annuity. But I 374 00:20:10,580 --> 00:20:12,620 S4: don't that's what I guess I don't understand is when 375 00:20:12,619 --> 00:20:16,859 S4: you put your money into some someone to invest it like. 376 00:20:17,100 --> 00:20:20,979 S4: Like you're kind of they kind of get you that way, 377 00:20:21,020 --> 00:20:22,580 S4: you know? I don't know what to do about it. 378 00:20:22,980 --> 00:20:26,460 S1: Yeah, yeah. It's all great questions. And you're describing some 379 00:20:26,460 --> 00:20:29,860 S1: of the reasons these aren't my favorite resources or tools 380 00:20:29,859 --> 00:20:32,580 S1: for saving for the future. I don't like the idea 381 00:20:32,580 --> 00:20:36,020 S1: of mixing insurance and savings. I'd rather keep our savings 382 00:20:36,020 --> 00:20:39,660 S1: and savings and retirement and investment vehicles, and then keep 383 00:20:39,660 --> 00:20:44,139 S1: our insurance and insurance products, but only to offset a 384 00:20:44,180 --> 00:20:48,020 S1: risk that exists. And, you know, namely the loss of 385 00:20:48,020 --> 00:20:52,700 S1: income after you know, someone's death who is a breadwinner 386 00:20:52,740 --> 00:20:55,939 S1: of the family. Um, what type of annuity is it? 387 00:20:55,940 --> 00:20:58,220 S1: Is it a fixed annuity? Is it a variable annuity? 388 00:20:58,260 --> 00:20:58,899 S1: Do you know. 389 00:21:00,460 --> 00:21:02,700 S4: You know, I was telling the girl that screened me, 390 00:21:02,740 --> 00:21:04,659 S4: I'm not home right now. I don't have it in 391 00:21:04,660 --> 00:21:06,740 S4: front of me. But if I'm not mistaken, I'm pretty 392 00:21:06,740 --> 00:21:07,659 S4: sure it's fixed. 393 00:21:08,260 --> 00:21:11,100 S1: Okay, so it's growing at a stated interest rate each 394 00:21:11,100 --> 00:21:13,580 S1: year until you annuitize where you convert it to a 395 00:21:13,580 --> 00:21:14,500 S1: monthly payment. 396 00:21:15,220 --> 00:21:18,060 S4: Sure. And it's and but in the meantime, if I 397 00:21:18,180 --> 00:21:20,980 S4: even if at that point I cashed out it doesn't 398 00:21:20,980 --> 00:21:23,060 S4: I don't get the growth. They don't. 399 00:21:23,060 --> 00:21:25,020 S1: Get it. No, no I totally get it. Yep. You're 400 00:21:25,020 --> 00:21:28,030 S1: exactly right. You get a check for your life. And 401 00:21:28,030 --> 00:21:30,470 S1: that would go away at your death. Typically, if it's 402 00:21:30,470 --> 00:21:33,310 S1: a life only income option. All right. That's helpful. So 403 00:21:33,310 --> 00:21:36,109 S1: let's do this. Stay right there. Uh, we'll talk about 404 00:21:36,109 --> 00:21:38,750 S1: where you go from here and what options you have 405 00:21:38,869 --> 00:21:41,909 S1: when we come back from this break. Michelle, I know, uh, 406 00:21:42,109 --> 00:21:43,870 S1: you wish you had not made this decision, but let's 407 00:21:43,869 --> 00:21:45,790 S1: try to make the best of it and see where 408 00:21:45,790 --> 00:21:47,710 S1: you might head from here. Stay on the line. We'll 409 00:21:47,710 --> 00:21:59,709 S1: be right back on Faith and finance Live. Thanks for 410 00:21:59,710 --> 00:22:01,989 S1: joining us today on Faith and Finance Live here on 411 00:22:01,990 --> 00:22:04,550 S1: Moody Radio. I'm Rob West. We're taking your calls and 412 00:22:04,550 --> 00:22:09,790 S1: questions today. That number 800 525 7000. We've got some 413 00:22:09,790 --> 00:22:12,070 S1: room for you. Still plenty of time remaining in the 414 00:22:12,070 --> 00:22:14,550 S1: program today. And so you'd like to get in on 415 00:22:14,550 --> 00:22:17,270 S1: the conversation. Go ahead and call right now. Again that 416 00:22:17,270 --> 00:22:22,670 S1: number 800 525 7000. Uh, before the break, we were 417 00:22:22,670 --> 00:22:26,790 S1: talking to Michelle. She was talked into buying an annuity. 418 00:22:26,830 --> 00:22:31,110 S1: She's understanding now better the fees associated with it, the commissions, 419 00:22:31,109 --> 00:22:34,590 S1: the surrender charges, and just not happy that if she 420 00:22:34,630 --> 00:22:37,669 S1: were to annuitize down the road, that is, convert it 421 00:22:37,670 --> 00:22:40,310 S1: to an income stream, she'd have to live a really 422 00:22:40,310 --> 00:22:42,390 S1: long time to be paid back. She feels like she 423 00:22:42,390 --> 00:22:45,070 S1: could do better with this money. And I think you're 424 00:22:45,070 --> 00:22:47,270 S1: hitting on some of the reasons why. You know, these 425 00:22:47,270 --> 00:22:49,669 S1: aren't my favorite option here. So let's move through a 426 00:22:49,670 --> 00:22:53,030 S1: few of the things that you described. I think, first 427 00:22:53,030 --> 00:22:56,030 S1: of all, you have that 1200 a month is probably 428 00:22:56,270 --> 00:23:01,230 S1: an illustrated lifetime income amount that you could elect in 429 00:23:01,230 --> 00:23:04,550 S1: the future if you chose to. Annuitize it's based on 430 00:23:04,550 --> 00:23:07,950 S1: your age. When you annuitize the interest rates, the contract 431 00:23:07,950 --> 00:23:11,270 S1: guarantees you're not required to take it. It's an option. 432 00:23:11,630 --> 00:23:14,310 S1: If you do annuitize, you would have an option between 433 00:23:14,310 --> 00:23:17,150 S1: what's called a life only, which is the highest monthly 434 00:23:17,150 --> 00:23:21,510 S1: income amount. It stops at death. There's nothing left for heirs. 435 00:23:21,710 --> 00:23:24,550 S1: You could do what's called a life with period certain. 436 00:23:24,550 --> 00:23:27,310 S1: And that's usually 10 or 20 years where you get 437 00:23:27,310 --> 00:23:30,830 S1: a lower monthly income and then if you die, early 438 00:23:30,830 --> 00:23:33,870 S1: payments continue to heirs for the remainder of the period. 439 00:23:34,350 --> 00:23:38,910 S1: Or you could get basically a refund or cash refund option, 440 00:23:38,910 --> 00:23:42,350 S1: which guarantees at least the premium paid is returned to 441 00:23:42,390 --> 00:23:46,550 S1: the beneficiaries if you passed away early. Um, and so 442 00:23:46,550 --> 00:23:50,030 S1: that choice would determine whether your kids receive anything, uh, 443 00:23:50,030 --> 00:23:52,190 S1: in terms of what your options are right now, if 444 00:23:52,190 --> 00:23:55,270 S1: you're not happy with what you might consider to be 445 00:23:55,270 --> 00:23:58,630 S1: a lower annual growth rate, which often, you know, these 446 00:23:58,630 --> 00:24:03,990 S1: are very conservative options, these, uh, fixed annuities and usually 447 00:24:03,990 --> 00:24:06,870 S1: somebody younger saving for the future, trying to grow your 448 00:24:06,869 --> 00:24:10,630 S1: retirement assets would be better served than a properly diversified 449 00:24:10,630 --> 00:24:12,669 S1: stock and bond portfolio, where you're going to get a 450 00:24:12,670 --> 00:24:15,469 S1: better rate of return even though you are assuming the 451 00:24:15,470 --> 00:24:19,230 S1: market risk with that. Whereas in this case, in exchange 452 00:24:19,230 --> 00:24:22,960 S1: for a lower guaranteed rate of return, you've transferred that 453 00:24:22,960 --> 00:24:26,280 S1: risk to the insurance company. And that's why people buy these. 454 00:24:26,280 --> 00:24:29,040 S1: But usually it's people who are more conservative, maybe a 455 00:24:29,040 --> 00:24:33,119 S1: little older and just not wanting to take any risk. Um, 456 00:24:33,119 --> 00:24:36,280 S1: so your options now would be do nothing where you 457 00:24:36,320 --> 00:24:38,840 S1: keep full control. You let it just continue to grow 458 00:24:38,840 --> 00:24:42,520 S1: at the guaranteed rate and then reassess later. You could 459 00:24:42,520 --> 00:24:46,920 S1: take partial withdrawals. So most fixed annuities allow 10% per 460 00:24:46,920 --> 00:24:51,600 S1: year penalty free. And then you could reduce your exposure gradually. 461 00:24:51,760 --> 00:24:53,879 S1: You could do a full surrender. But a lot of 462 00:24:53,880 --> 00:24:55,960 S1: that's going to have to do with whether there's still 463 00:24:55,960 --> 00:25:00,400 S1: any surrender charges. Normally those decline over time and then 464 00:25:00,400 --> 00:25:03,440 S1: you'd have taxes on any gain. So you just need 465 00:25:03,440 --> 00:25:06,560 S1: to be aware of that. Um, and so and then 466 00:25:06,560 --> 00:25:08,960 S1: the last option might be you just wait until the 467 00:25:08,960 --> 00:25:13,640 S1: surrender charge expires. And at that point, you know, you could, uh, 468 00:25:13,640 --> 00:25:16,160 S1: you know, get that down to zero, hopefully, and then 469 00:25:16,160 --> 00:25:19,919 S1: just redirect those funds somewhere else that's more in line 470 00:25:19,920 --> 00:25:22,360 S1: with your goals and objectives. But give me your thought 471 00:25:22,359 --> 00:25:23,119 S1: on all that. 472 00:25:24,560 --> 00:25:27,560 S4: Whoo! Well, um, I hope that a lot of people 473 00:25:27,560 --> 00:25:30,879 S4: that are hearing this are taking note. Not to. To me, 474 00:25:30,920 --> 00:25:33,080 S4: not to buy an annuity. It was a very, to me, 475 00:25:33,080 --> 00:25:36,200 S4: a really big mistake because I put my whole 401 476 00:25:36,240 --> 00:25:39,320 S4: K into it. I don't have anything I set aside 477 00:25:39,320 --> 00:25:42,240 S4: to speak of really. It's gone was a little bit, um, 478 00:25:42,680 --> 00:25:46,800 S4: but at this point, yeah, it sounds like because the 479 00:25:46,800 --> 00:25:49,480 S4: surrender charges now, because it's only two years old, are 480 00:25:49,480 --> 00:25:53,160 S4: still really high. So I would probably, like you said, 481 00:25:53,200 --> 00:25:55,760 S4: probably wait it out until the surrender charges are not 482 00:25:55,760 --> 00:25:59,280 S4: that bad. But I feel like up until the, you know, 483 00:25:59,320 --> 00:26:02,720 S4: the ten year mark, they're going to try to, you know, 484 00:26:03,320 --> 00:26:05,280 S4: they're going to try to screw me over or whatever. 485 00:26:05,520 --> 00:26:07,200 S4: I think they're still going to try to get what 486 00:26:07,200 --> 00:26:08,960 S4: they can out of it. You know what I mean? 487 00:26:09,359 --> 00:26:11,680 S5: I don't know, but I think what's important here is 488 00:26:11,680 --> 00:26:12,440 S5: because that was. 489 00:26:12,440 --> 00:26:16,720 S1: A 401 K, it's essentially of what's called a a 490 00:26:16,880 --> 00:26:21,850 S1: fixed annuity IRA. That's not been annuitized. So your money. 491 00:26:22,050 --> 00:26:25,890 S1: The money is still your IRA. The annuity has an 492 00:26:25,890 --> 00:26:30,490 S1: account value. Nothing's been locked in. And so apart from 493 00:26:30,490 --> 00:26:33,570 S1: the surrender charges, you should be able to roll that 494 00:26:33,570 --> 00:26:36,889 S1: out to an IRA, which would keep it in a 495 00:26:36,890 --> 00:26:40,410 S1: tax deferred environment. Preserve much of what you already put 496 00:26:40,410 --> 00:26:43,330 S1: into it, even though maybe it hasn't been growing as 497 00:26:43,330 --> 00:26:45,770 S1: as well as you would have hoped. At least you're 498 00:26:45,770 --> 00:26:49,890 S1: going to, you know, keep the full principal amount. And 499 00:26:49,890 --> 00:26:51,970 S1: then once you get it back into that IRA, you'd 500 00:26:52,010 --> 00:26:54,010 S1: be free to invest it any way you want or 501 00:26:54,010 --> 00:26:55,929 S1: hire an advisor to do that for you. 502 00:26:56,609 --> 00:27:01,930 S4: Um, so what would what would you say would be like, 503 00:27:02,210 --> 00:27:04,969 S4: it's still, I think, at like 17 grand to the 504 00:27:04,970 --> 00:27:07,609 S4: surrender charges, which I never heard of anything like that. 505 00:27:07,609 --> 00:27:13,010 S4: You're giving people your money to, to basically hold or invest, 506 00:27:13,170 --> 00:27:14,970 S4: and they're going to charge you 17 grand if you 507 00:27:14,970 --> 00:27:17,169 S4: want it, if you don't want to, like, keep it 508 00:27:17,170 --> 00:27:19,250 S4: there Like I never heard that. Then when I saw 509 00:27:19,250 --> 00:27:23,730 S4: that I was, I was blown away. Um, so yeah. 510 00:27:23,730 --> 00:27:26,129 S4: So I that's the problem is that the surrender charges 511 00:27:26,130 --> 00:27:28,609 S4: are so high and it's not that much, you know. 512 00:27:28,650 --> 00:27:31,850 S1: Yeah. Yeah. Well, yeah. So that just simply means you're 513 00:27:31,850 --> 00:27:34,410 S1: still in the surrender period. So, like, walking away right 514 00:27:34,410 --> 00:27:37,810 S1: now would cost you 17,000. And basically, this is the 515 00:27:37,810 --> 00:27:41,850 S1: way the insurance company recaptures the agent's commission and the 516 00:27:41,850 --> 00:27:46,410 S1: guarantees they've provided. And so, you know, I think you're 517 00:27:46,410 --> 00:27:49,850 S1: not stuck. You've not lost the money. You haven't annuitized 518 00:27:49,850 --> 00:27:52,689 S1: it's still inside an IRA. So it's still in a 519 00:27:52,690 --> 00:27:56,130 S1: tax deferred environment. That's good. You don't need the income 520 00:27:56,130 --> 00:27:59,250 S1: right now. I don't think so. You have time and flexibility. 521 00:27:59,530 --> 00:28:01,730 S1: So I think the you know, the key right now 522 00:28:02,050 --> 00:28:07,609 S1: is probably just to, to wait. Um, and, you know, eventually, um, 523 00:28:08,050 --> 00:28:10,810 S1: wait till those surrender charges decline and then just do 524 00:28:10,810 --> 00:28:14,490 S1: a transfer out of the IRA annuity into just a 525 00:28:14,490 --> 00:28:17,740 S1: straight IRA and then hire an advisor to manage that 526 00:28:17,740 --> 00:28:19,859 S1: for you. And you're still going to be earning something 527 00:28:19,859 --> 00:28:22,500 S1: while you wait because there's that guaranteed return. 528 00:28:24,140 --> 00:28:29,260 S4: Yes, yes. But it's it's for whatever reason, it's not 529 00:28:29,260 --> 00:28:31,979 S4: a lot. And then the surrender charges eat it all up. 530 00:28:32,020 --> 00:28:33,260 S4: You know what I mean? So it's like. 531 00:28:33,660 --> 00:28:35,500 S1: Well, but if we wait till those go away, at 532 00:28:35,500 --> 00:28:38,020 S1: least you're getting the guaranteed return, even though it's less 533 00:28:38,020 --> 00:28:41,700 S1: than you might want. And eventually, those surrender charges decline, 534 00:28:41,740 --> 00:28:44,180 S1: probably in a total of seven years from when you 535 00:28:44,180 --> 00:28:46,620 S1: first took it out. And then you could roll it 536 00:28:46,620 --> 00:28:48,980 S1: out into an IRA and let it keep growing from there. 537 00:28:48,980 --> 00:28:51,420 S1: So I think those are your next steps. Perhaps go 538 00:28:51,420 --> 00:28:53,860 S1: ahead and connect with advisor just to look over this 539 00:28:53,860 --> 00:28:56,740 S1: and see if there's anything we're missing, because there's a 540 00:28:56,740 --> 00:28:58,860 S1: lot of fine print with these annuities. And so if 541 00:28:58,860 --> 00:29:01,980 S1: you don't have an advisor, you can head to the website, 542 00:29:01,980 --> 00:29:07,660 S1: find a com that stands for Certified Kingdom Advisor. And 543 00:29:07,660 --> 00:29:09,700 S1: you could find some in your area there in Chicago. 544 00:29:09,740 --> 00:29:12,100 S1: There's some great ones. Michelle, I wish I had better 545 00:29:12,100 --> 00:29:15,500 S1: news for you. You'll get through this. And, I'm confident 546 00:29:15,500 --> 00:29:17,940 S1: we can repurpose this into something that more aligns with 547 00:29:17,940 --> 00:29:20,340 S1: your values and goals. Thanks for your call today. Lord 548 00:29:20,340 --> 00:29:22,780 S1: bless you. Let's go to Indiana. Hi, Kenny. Go ahead. 549 00:29:24,380 --> 00:29:32,580 S6: Hi, Rob. Um, I. Wish was all as good as, uh, 550 00:29:32,580 --> 00:29:37,820 S6: Noah and financing because he floated his entire stock while 551 00:29:37,820 --> 00:29:39,220 S6: everything was being liquidated. 552 00:29:43,220 --> 00:29:45,900 S1: I lost a little bit of what you said there. 553 00:29:45,940 --> 00:29:46,780 S1: Say that again. 554 00:29:49,020 --> 00:29:52,100 S6: If it was all as good as Noah and financing 555 00:29:53,540 --> 00:29:55,860 S6: our entire stock, why? Anything is being liquidated. 556 00:29:56,980 --> 00:30:00,580 S1: I like it, Noah. I missed that part. Got it. Yes, sir. 557 00:30:01,100 --> 00:30:04,420 S1: That's great. What is your question today? And I'll answer 558 00:30:04,420 --> 00:30:05,700 S1: it right after this break. 559 00:30:06,780 --> 00:30:10,380 S6: Okay. Uh, it's about the Irma tax. Uh, I'll be 560 00:30:10,380 --> 00:30:13,590 S6: 53 this year, and I want. I've been making some 561 00:30:13,590 --> 00:30:15,150 S6: good money, and I want to make sure I'm not 562 00:30:15,150 --> 00:30:16,230 S6: going over the limit. 563 00:30:16,670 --> 00:30:19,469 S1: Ah. Got it. Yeah. That's great. Well, it's a good 564 00:30:19,470 --> 00:30:22,390 S1: thing that you got some income and income is up. 565 00:30:22,390 --> 00:30:25,950 S1: But you're right, it does affect the income related monthly 566 00:30:25,950 --> 00:30:30,390 S1: adjustment amount, uh, related to Medicare. So I'll unpack how 567 00:30:30,390 --> 00:30:32,950 S1: that works and let's see, uh, see what you've got 568 00:30:32,950 --> 00:30:35,350 S1: coming in and what you might need to be prepared for. 569 00:30:35,390 --> 00:30:37,550 S1: Good news is, uh, this is kind of a one 570 00:30:37,590 --> 00:30:41,390 S1: time thing. It should only affect one year and then reset. 571 00:30:41,390 --> 00:30:43,590 S1: But you don't want that to catch you by surprise. 572 00:30:43,790 --> 00:30:46,510 S1: So thanks for the Noah joke. And, uh, we'll get 573 00:30:46,510 --> 00:30:48,830 S1: to the answer to this question right around the corner. 574 00:30:48,910 --> 00:31:00,350 S1: Stay with us. Great to have you with us today 575 00:31:00,350 --> 00:31:02,830 S1: on Faith and finance live here in our final segment today, 576 00:31:02,830 --> 00:31:05,150 S1: we're taking your calls and questions. I've got room for 577 00:31:05,150 --> 00:31:08,550 S1: maybe one more question today. In addition to those holding 578 00:31:08,590 --> 00:31:12,990 S1: the number is 800 525 7000. Before the break, we 579 00:31:13,030 --> 00:31:16,110 S1: were talking to Kenny. Kenny is 63 or he'll be 580 00:31:16,110 --> 00:31:20,550 S1: 63 this year, and he's wondering if the Irma tax 581 00:31:20,590 --> 00:31:26,709 S1: will apply. That's the income related adjustment amount that applies 582 00:31:26,710 --> 00:31:30,990 S1: depending upon the income you have. Uh, for higher income 583 00:31:30,990 --> 00:31:35,070 S1: Medicare beneficiaries. So give me just kind of a rundown, Kenny, 584 00:31:35,110 --> 00:31:36,950 S1: of what what happened this year that was out of 585 00:31:36,950 --> 00:31:37,710 S1: the ordinary. 586 00:31:39,070 --> 00:31:44,550 S6: Well, uh, work has gotten really busy, and, uh, has 587 00:31:44,590 --> 00:31:49,910 S6: blessed us, uh, to where I'm now making six figures 588 00:31:49,910 --> 00:31:53,710 S6: for the last 3 or 4 years. And, uh, I'm 589 00:31:53,750 --> 00:31:59,630 S6: looking at about 118,000 this year. And, uh, my wife 590 00:31:59,630 --> 00:32:03,830 S6: makes probably about 60 to 70,000 a year. And I 591 00:32:03,830 --> 00:32:05,470 S6: didn't know if that was going to bump us up 592 00:32:05,550 --> 00:32:07,870 S6: past the Irma amount or not. 593 00:32:08,470 --> 00:32:11,760 S1: Yeah. Well, I think the key to understand is that 594 00:32:11,760 --> 00:32:15,280 S1: it has to do with, uh, the income you have 595 00:32:15,280 --> 00:32:18,600 S1: from two years earlier. So they look at your income 596 00:32:18,600 --> 00:32:22,280 S1: from two years prior, and it only applies once you're 597 00:32:22,280 --> 00:32:26,959 S1: on Medicare. Uh, you know, usually at age 65. Um, 598 00:32:27,160 --> 00:32:31,160 S1: so when you turn 65, Medicare will look at your 599 00:32:31,160 --> 00:32:35,160 S1: income at age 63. So if we just take those numbers, 600 00:32:35,160 --> 00:32:38,120 S1: let's say you have a combined modified adjusted gross income 601 00:32:38,120 --> 00:32:44,400 S1: of about 188,000 for married filing jointly. Irma typically starts 602 00:32:44,800 --> 00:32:49,840 S1: at about 206,000. So at 188, you would be below 603 00:32:49,880 --> 00:32:53,720 S1: that threshold, meaning that you would have the standard Medicare 604 00:32:53,720 --> 00:32:57,520 S1: Part B and D premiums and no Irma surcharge. 605 00:32:58,560 --> 00:33:00,200 S6: Okay. Good. Good. 606 00:33:00,240 --> 00:33:00,600 S1: Yeah. 607 00:33:00,880 --> 00:33:01,840 S6: Like hearing that. 608 00:33:03,320 --> 00:33:05,640 S1: Well, the only thing to remember though is if your 609 00:33:05,640 --> 00:33:09,400 S1: income rises above that threshold before age 65. It could 610 00:33:09,400 --> 00:33:12,280 S1: apply later. A lot of times it comes because maybe 611 00:33:12,280 --> 00:33:15,520 S1: there's a large IRA or 401 K withdrawal or a 612 00:33:15,560 --> 00:33:19,920 S1: Roth conversion, or maybe you sell a business or an 613 00:33:19,920 --> 00:33:23,600 S1: investment property, something like that. A one year spike that 614 00:33:23,600 --> 00:33:26,000 S1: can cause the EMA for a full year. But apart 615 00:33:26,000 --> 00:33:28,440 S1: from that, uh, you know, you just need to be 616 00:33:28,440 --> 00:33:32,600 S1: intentional with any large income events, spread out withdrawals the 617 00:33:32,600 --> 00:33:37,000 S1: best you can, and coordinate retirement income with Medicare planning. 618 00:33:37,000 --> 00:33:39,880 S1: But sounds like based on the trajectory you're on, you 619 00:33:39,880 --> 00:33:41,080 S1: shouldn't have much of an issue. 620 00:33:42,400 --> 00:33:45,240 S6: Okay, great. I don't expect that big of a raise, 621 00:33:45,240 --> 00:33:48,160 S6: so hopefully we can stay below the mark. 622 00:33:48,560 --> 00:33:51,240 S1: All right. Very good. Well, listen, thanks for your call, Kenny. 623 00:33:51,280 --> 00:33:53,680 S1: We appreciate you being on the program, sir. Call any time. 624 00:33:53,680 --> 00:33:56,520 S1: Let's go to, uh, Ohio. Sandy. Go ahead. 625 00:33:58,120 --> 00:34:00,520 S7: Um, yeah, it has to do with my parents home. 626 00:34:00,520 --> 00:34:04,440 S7: They're both still living, but there's four of us siblings, 627 00:34:04,560 --> 00:34:07,610 S7: and I think they have it willed to go to 628 00:34:07,650 --> 00:34:11,290 S7: all four of us. But nobody wants the house but us. 629 00:34:11,330 --> 00:34:13,529 S7: Like we want to keep it as a house and 630 00:34:13,530 --> 00:34:16,290 S7: they want to sell. So how do I go about 631 00:34:16,290 --> 00:34:18,810 S7: handling this? Because there's no way we could buy the 632 00:34:18,810 --> 00:34:20,610 S7: three out to keep the house. 633 00:34:21,210 --> 00:34:24,810 S1: Yeah, yeah, yeah. The problem is, I mean, you can't 634 00:34:24,810 --> 00:34:29,210 S1: force equality through the will alone. If one child keeps 635 00:34:29,210 --> 00:34:32,609 S1: the house but cannot buy the others out, uh, the 636 00:34:32,610 --> 00:34:35,450 S1: will states who gets the house, but it can't create 637 00:34:35,450 --> 00:34:39,489 S1: cash for the other siblings. Um, so, you know, you 638 00:34:39,489 --> 00:34:42,450 S1: can leave the house to one child and balance it 639 00:34:42,450 --> 00:34:45,169 S1: out with other assets. But that would require that they 640 00:34:45,170 --> 00:34:49,530 S1: have other assets to be able to balance things out. And, 641 00:34:49,570 --> 00:34:52,489 S1: you know, that obviously is is not always the case. 642 00:34:52,730 --> 00:34:55,529 S1: Another way would be to use life insurance. So if 643 00:34:55,530 --> 00:34:59,250 S1: the estate is house heavy they could leave the house to, 644 00:34:59,610 --> 00:35:02,009 S1: you know, you in this case and then purchase life 645 00:35:02,010 --> 00:35:06,770 S1: insurance where the death benefit goes to the other three children. Um, 646 00:35:06,930 --> 00:35:11,330 S1: you could, you know, uh, the will or trust could 647 00:35:11,330 --> 00:35:15,170 S1: say that all four children inherit the home. Equally. One 648 00:35:15,170 --> 00:35:17,650 S1: has the right to live there for a set period. 649 00:35:17,690 --> 00:35:20,090 S1: Who pays the taxes and the insurance? And then the 650 00:35:20,090 --> 00:35:23,129 S1: home is sold later and the proceeds are split. But 651 00:35:23,130 --> 00:35:24,730 S1: that may not work if you all want to just 652 00:35:24,730 --> 00:35:29,250 S1: keep it indefinitely. Um, the other option is to put 653 00:35:29,250 --> 00:35:32,049 S1: the home into a living trust rather than just a 654 00:35:32,090 --> 00:35:37,170 S1: will and the trust avoid provides probate defines who's going 655 00:35:37,210 --> 00:35:40,250 S1: to get the house and pay the expenses. And what 656 00:35:40,250 --> 00:35:43,410 S1: happens if the terms aren't met. But at the end 657 00:35:43,410 --> 00:35:45,810 S1: of the day, you know, if you want to keep 658 00:35:45,810 --> 00:35:47,810 S1: it and you can't, they're not able to do one 659 00:35:47,810 --> 00:35:50,569 S1: of those other things, like balancing it out with other assets, 660 00:35:50,570 --> 00:35:53,689 S1: or buying life insurance, or allowing you all to live 661 00:35:53,690 --> 00:35:57,570 S1: there and pay the expenses for a set period of time, then, 662 00:35:57,890 --> 00:36:00,290 S1: you know, the only other way would just be you 663 00:36:00,290 --> 00:36:04,100 S1: all take on a mortgage, um, equal to the amount 664 00:36:04,100 --> 00:36:06,500 S1: that would allow you to buy the other three out, 665 00:36:06,500 --> 00:36:09,020 S1: but you'd have to have the ability to service the debt. 666 00:36:09,180 --> 00:36:10,219 S1: Does that make sense? 667 00:36:11,260 --> 00:36:16,740 S7: It does, it does. And um, they are the first 668 00:36:16,780 --> 00:36:19,620 S7: option would be good that you said that they would 669 00:36:19,620 --> 00:36:22,180 S7: give it to us, and then they could give assets 670 00:36:22,180 --> 00:36:24,820 S7: to the other kids. But it's already in the will. 671 00:36:24,820 --> 00:36:26,820 S7: So they have to go change that. Correct? 672 00:36:26,860 --> 00:36:27,460 S1: Yeah. Yeah. 673 00:36:27,460 --> 00:36:30,180 S7: They really do have it like the alpha. Okay, okay. 674 00:36:30,219 --> 00:36:34,660 S1: Yeah. All right. Yeah. And this might be a case where. Yeah. 675 00:36:34,700 --> 00:36:37,820 S1: No problem. And this might be a case where it's worth, uh, 676 00:36:37,860 --> 00:36:40,620 S1: you know, having a living trust, which would just give 677 00:36:40,620 --> 00:36:43,180 S1: you a little bit more flexibility over it. It's gonna 678 00:36:43,180 --> 00:36:46,580 S1: be a little more expensive to set up than a will, but, um, 679 00:36:46,580 --> 00:36:51,739 S1: you know, it would it could bring more definition to this. And, 680 00:36:51,900 --> 00:36:53,899 S1: you know, just you'd have to retitle the home in 681 00:36:53,900 --> 00:36:55,780 S1: the name of the trust and all the other assets 682 00:36:55,780 --> 00:36:58,899 S1: as well. But yeah, they in either case, they're going 683 00:36:58,940 --> 00:37:00,939 S1: to have to redo their estate plan to make sure 684 00:37:00,940 --> 00:37:03,100 S1: this is done in a way that allows you all 685 00:37:03,100 --> 00:37:07,420 S1: to get the house for them to treat everybody equitably, equitably. Um, 686 00:37:07,420 --> 00:37:11,540 S1: but also acknowledge that there's no intention for anybody else 687 00:37:11,540 --> 00:37:13,819 S1: to want the home, and therefore we're going to deal 688 00:37:13,820 --> 00:37:15,460 S1: with their inheritance another way. 689 00:37:16,620 --> 00:37:18,700 S7: Okay. Okay. Great. Thank you so much. 690 00:37:18,780 --> 00:37:21,500 S1: You're welcome. Sandy, thanks for your call today. Uh, let's see. 691 00:37:21,500 --> 00:37:28,540 S1: We're going to head to Georgia. Michelle. Go ahead. Oh, 692 00:37:28,580 --> 00:37:31,500 S1: we lost her. Uh, you're welcome to call back. Let's 693 00:37:31,500 --> 00:37:38,020 S1: head to Alaska. Eric, how can we help you? Eric, 694 00:37:38,020 --> 00:37:42,780 S1: are you with us? All right. I know Eric wanted 695 00:37:42,780 --> 00:37:46,380 S1: to talk about Iols. Uh, so let me see if 696 00:37:46,380 --> 00:37:49,020 S1: I can just tackle this. Uh, my notes from, uh, 697 00:37:49,020 --> 00:37:52,819 S1: the call screener are that Eric, uh, is curious about 698 00:37:52,860 --> 00:37:57,260 S1: index universal life insurance. Uh, he's in his 30s, and 699 00:37:57,260 --> 00:38:00,950 S1: he's wondering, uh, if these could be an effective strategy 700 00:38:00,950 --> 00:38:05,029 S1: because he's aware that you can take loans against these policies, 701 00:38:05,070 --> 00:38:08,270 S1: against the equity and the policy and essentially, quote unquote, 702 00:38:08,310 --> 00:38:11,630 S1: become your own bank. He's just wondering for thoughts there. 703 00:38:11,630 --> 00:38:15,310 S1: So basically, just for the benefit of everybody listening, uh, 704 00:38:15,710 --> 00:38:20,509 S1: IUL is permanent life insurance. So think whole life with 705 00:38:20,510 --> 00:38:24,390 S1: a cash value component. And the cash value can earn 706 00:38:24,390 --> 00:38:28,470 S1: interest linked to a market index. So think the S&P 707 00:38:28,510 --> 00:38:33,190 S1: 500 usually the growth is capped on the upside. So 708 00:38:33,310 --> 00:38:36,390 S1: you know you can earn the S&P return up to 709 00:38:36,430 --> 00:38:39,150 S1: a certain amount. Maybe it's 7 or 9% if the 710 00:38:39,150 --> 00:38:42,870 S1: market's up 26% like it was you know last year 711 00:38:42,870 --> 00:38:45,830 S1: you only get seven and the insurance company keeps the rest. 712 00:38:45,830 --> 00:38:50,549 S1: But it's protected from losses. So there's often a 0% floor. 713 00:38:50,950 --> 00:38:54,150 S1: Um it's not an investment account in the traditional sense. 714 00:38:54,150 --> 00:38:58,109 S1: It's life insurance first. Now, what people mean by be 715 00:38:58,110 --> 00:39:01,750 S1: your own bank. Is there referring to barring borrowing against 716 00:39:01,750 --> 00:39:05,149 S1: the cash value? The loans are not taxable and then 717 00:39:05,150 --> 00:39:07,350 S1: the money could be used for business or real estate 718 00:39:07,350 --> 00:39:10,390 S1: or emergencies. And then you repay the loan to keep 719 00:39:10,390 --> 00:39:15,149 S1: the policy healthy. But you're not earning bank like profits. 720 00:39:15,150 --> 00:39:18,870 S1: You're borrowing your own money with interest. And this is 721 00:39:18,870 --> 00:39:24,310 S1: about access and control. So the downsides are there's high 722 00:39:24,310 --> 00:39:29,830 S1: costs early on the insurance charges, the policy fees, the commissions. 723 00:39:29,830 --> 00:39:32,910 S1: It can take years to break even. They're complex. I 724 00:39:32,910 --> 00:39:35,589 S1: mentioned the participation rate and the caps. You only get 725 00:39:35,590 --> 00:39:38,230 S1: a certain amount of the upside. That doesn't do well 726 00:39:38,390 --> 00:39:41,230 S1: in years like we've had recently in the stock market 727 00:39:41,230 --> 00:39:44,670 S1: where the stocks are up dramatically. You don't participate in that. 728 00:39:44,670 --> 00:39:48,750 S1: There's loans rate loan rates, there's funding limits. They're easy 729 00:39:48,750 --> 00:39:53,509 S1: to misunderstand. Um, there can be poorly designed policies that fail. 730 00:39:53,830 --> 00:39:56,149 S1: I would say they're not great in your 30s for 731 00:39:56,150 --> 00:39:59,439 S1: most people because your income still are still growing. Your 732 00:39:59,440 --> 00:40:03,960 S1: retirement accounts aren't maxed out, you're looking for flexibility and 733 00:40:03,960 --> 00:40:09,520 S1: the returns are often oversold. Just in general, illustrations assume 734 00:40:09,520 --> 00:40:14,240 S1: ideal conditions and real world results are typically lower. So 735 00:40:14,520 --> 00:40:17,040 S1: I would say these are complex. You can do better 736 00:40:17,040 --> 00:40:19,840 S1: outside them. And I would just stay away from this 737 00:40:19,840 --> 00:40:22,680 S1: Eric if it were me. But hopefully that gives you 738 00:40:22,680 --> 00:40:25,040 S1: a few other things to think about. We appreciate your 739 00:40:25,040 --> 00:40:27,840 S1: call today. Sorry we didn't get you on quickly to Georgia. 740 00:40:27,840 --> 00:40:30,960 S1: I think we've got Michelle back and I've got about 90s. 741 00:40:30,960 --> 00:40:33,239 S1: So Michelle, we'll have to be a little, little quick 742 00:40:33,239 --> 00:40:33,840 S1: on this. 743 00:40:34,600 --> 00:40:41,080 S8: Yes, sir. Um, we currently have approximately $100,000 in savings. 744 00:40:42,040 --> 00:40:47,440 S8: We're completely debt free. No car, no nothing. I do 745 00:40:47,440 --> 00:40:52,160 S8: not work. My husband's still working. We're 60. I'm looking 746 00:40:52,160 --> 00:40:55,960 S8: to find out the best way to enhance that money 747 00:40:55,960 --> 00:40:58,440 S8: so that we'll have it to live on for retirement. 748 00:40:59,280 --> 00:41:03,279 S1: Okay. Yeah. So do you have any retirement accounts right 749 00:41:03,280 --> 00:41:05,320 S1: now that are you're contributing to. 750 00:41:06,239 --> 00:41:07,200 S8: I do not. 751 00:41:07,600 --> 00:41:09,239 S1: Okay. Do you have access to one? 752 00:41:09,400 --> 00:41:10,960 S8: I'm not sure what's in it. 753 00:41:12,120 --> 00:41:15,479 S1: Okay. Yeah, I would say as much as we can 754 00:41:15,480 --> 00:41:20,400 S1: start plowing into his retirement account would be best. Because 755 00:41:20,400 --> 00:41:23,200 S1: although we could invest this right now, and assuming this 756 00:41:23,200 --> 00:41:26,759 S1: is beyond your emergency fund, if it's not, I would 757 00:41:26,760 --> 00:41:29,239 S1: set aside 3 to 6 months worth of expenses out 758 00:41:29,239 --> 00:41:32,560 S1: of this 100,000 and only talk about dealing with the 759 00:41:32,560 --> 00:41:34,920 S1: rest because we don't want to get you illiquid. We 760 00:41:34,920 --> 00:41:37,000 S1: want you to be able to deal with the unexpected. 761 00:41:37,160 --> 00:41:38,839 S1: That means you got to have an emergency fund. But 762 00:41:38,840 --> 00:41:42,959 S1: let's say that was 25,000. You had 75,000 left. I'd 763 00:41:42,960 --> 00:41:46,799 S1: want you to try to get that into a retirement account. 764 00:41:46,800 --> 00:41:50,359 S1: And if it's already in savings, one way you could 765 00:41:50,360 --> 00:41:54,120 S1: do that would be to max out, uh, you know, his, 766 00:41:54,730 --> 00:41:57,970 S1: Let's say he has a 401 K. If he maxed 767 00:41:57,969 --> 00:42:02,890 S1: out his 401 K contribution for 2026, which, you know, 768 00:42:02,930 --> 00:42:05,129 S1: for this year, you're going to be able to put 769 00:42:05,130 --> 00:42:09,450 S1: away quite a bit of money. Uh, 24,500 for most 770 00:42:09,450 --> 00:42:12,890 S1: participants under age 50, if it's 50 or older, you 771 00:42:12,890 --> 00:42:16,610 S1: can add 8000 to that. And even if that meant 772 00:42:16,890 --> 00:42:19,569 S1: that that wasn't going to leave you with enough to 773 00:42:19,610 --> 00:42:22,609 S1: cover your bills because you're dramatically increasing the amount going 774 00:42:22,610 --> 00:42:26,450 S1: into retirement, well, you could supplement that from your savings. 775 00:42:26,450 --> 00:42:29,130 S1: So you're essentially taking it from one bucket and moving 776 00:42:29,130 --> 00:42:31,650 S1: it to the other, which is what the idea is, 777 00:42:31,650 --> 00:42:33,290 S1: because we want to get as much of that into 778 00:42:33,290 --> 00:42:36,290 S1: a tax deferred environment as you can. So I'd look 779 00:42:36,290 --> 00:42:38,930 S1: at trying to fund a 401 K or IRA with 780 00:42:38,930 --> 00:42:41,170 S1: this money. And if you need an advisor to help, 781 00:42:41,170 --> 00:42:45,770 S1: go to find a com. Thanks, Michel. Thanks. In Finance lives, 782 00:42:45,770 --> 00:42:48,490 S1: a partnership between Moody Radio and Faith fi. Big thanks 783 00:42:48,489 --> 00:42:51,489 S1: to Taylor, Tahera, Lisa and Dan. We'll see you tomorrow.