1 00:00:08,560 --> 00:00:11,559 S1: Faith based investing has been around for decades, but many 2 00:00:11,560 --> 00:00:15,320 S1: still wonder, does aligning your investments with your values mean 3 00:00:15,320 --> 00:00:20,079 S1: sacrificing performance or diversification? Hi, I'm Rob West. It's a 4 00:00:20,079 --> 00:00:23,000 S1: question more investors are asking as they seek to steward 5 00:00:23,000 --> 00:00:26,320 S1: their money in a way that reflects their convictions. Today, 6 00:00:26,320 --> 00:00:28,639 S1: Brian Mumber joins us to clear up some of the 7 00:00:28,640 --> 00:00:32,720 S1: most common misconceptions about faith based investing and how it 8 00:00:32,720 --> 00:00:35,880 S1: really works. And then we'll take your calls at 800 9 00:00:35,880 --> 00:00:41,080 S1: 525 7000. This is faith and finance. Live biblical wisdom 10 00:00:41,080 --> 00:00:46,800 S1: for your financial journey. Well, it's always a joy to 11 00:00:46,840 --> 00:00:50,840 S1: welcome back Brian Lumbard. He serves as president of Timothy Plan, 12 00:00:50,880 --> 00:00:54,800 S1: a trailblazer in faith based mutual funds and a valued 13 00:00:54,800 --> 00:00:57,960 S1: underwriter of this program. Brian, great to have you with us. 14 00:00:58,240 --> 00:01:00,550 S2: Thanks, Rob. Always great to be with you, Brian. 15 00:01:00,550 --> 00:01:03,710 S1: Faith based investing has been around for decades, yet many 16 00:01:03,710 --> 00:01:06,870 S1: people still aren't quite sure how it works. So we 17 00:01:06,870 --> 00:01:11,069 S1: want to begin with a common misconception that these funds 18 00:01:11,069 --> 00:01:14,750 S1: always come with higher expenses. Is that actually true? 19 00:01:14,790 --> 00:01:18,030 S2: Well, Rob, people often assume that once you start screening 20 00:01:18,030 --> 00:01:21,990 S2: companies out, the costs automatically go up. But faith based 21 00:01:21,990 --> 00:01:25,470 S2: funds are managed much like other mutual funds and with 22 00:01:25,470 --> 00:01:28,790 S2: professional research and portfolio management. And in many cases, the 23 00:01:28,790 --> 00:01:32,350 S2: expense ratios can be comparable to those of traditional funds, 24 00:01:32,630 --> 00:01:36,510 S2: especially with the addition of ETFs as a lower cost option. 25 00:01:37,069 --> 00:01:39,310 S2: But I'd like to add also, you know, the expenses 26 00:01:39,310 --> 00:01:41,670 S2: can be higher at times. You know, it's based on 27 00:01:41,670 --> 00:01:43,390 S2: the size of a company. And a lot of our 28 00:01:43,390 --> 00:01:47,550 S2: companies are smaller. But in many cases, I use the 29 00:01:47,550 --> 00:01:49,910 S2: analogy that I often will pay a little bit more 30 00:01:49,910 --> 00:01:53,470 S2: for something that I truly want. And in the case 31 00:01:53,470 --> 00:01:55,510 S2: of investing, if I want to match my values with 32 00:01:55,510 --> 00:01:58,390 S2: my investing, I'm absolutely willing to do a little bit 33 00:01:58,390 --> 00:02:01,140 S2: more to get exactly what I want to achieve. 34 00:02:01,420 --> 00:02:04,740 S1: Yeah, that's well said. Another misconception we hear is that 35 00:02:04,740 --> 00:02:08,700 S1: faith based investing is largely symbolic. More about making a 36 00:02:08,700 --> 00:02:13,299 S1: statement than building a strong portfolio, and that prioritizing values 37 00:02:13,300 --> 00:02:16,500 S1: must come at the expense of performance. So I'd love 38 00:02:16,500 --> 00:02:18,339 S1: for you to respond to that concern. 39 00:02:18,380 --> 00:02:21,620 S2: Yeah. Rob, you know, values based screening doesn't replace sound 40 00:02:21,620 --> 00:02:25,940 S2: investment analysis. Professional portfolio managers are still looking very carefully 41 00:02:25,940 --> 00:02:28,060 S2: at all the fundamentals and the risks and the long 42 00:02:28,100 --> 00:02:32,060 S2: term opportunities. And in fact, many faith based funds produce 43 00:02:32,060 --> 00:02:35,060 S2: competitive returns over time and at other times can even 44 00:02:35,100 --> 00:02:39,500 S2: outperform unscreened funds. Really, the goal here is to combine 45 00:02:39,500 --> 00:02:42,179 S2: wise stewardship with disciplined investing. 46 00:02:42,460 --> 00:02:45,739 S1: Yeah, the data says you just don't have to sacrifice 47 00:02:45,740 --> 00:02:49,300 S1: returns to invest in a way that aligns with your convictions. 48 00:02:49,340 --> 00:02:51,940 S1: All right, Brian, here's one that can sound a bit technical, 49 00:02:51,940 --> 00:02:54,980 S1: but it comes up often. Some critics argue that faith 50 00:02:55,020 --> 00:03:00,250 S1: based investing doesn't really create impact, Since shares are traded 51 00:03:00,250 --> 00:03:03,530 S1: on the secondary market, meaning someone else will own the 52 00:03:03,530 --> 00:03:06,290 S1: stock anyway. How do you respond to that? 53 00:03:06,330 --> 00:03:09,130 S2: We hear this one pretty frequently at Timothy Plan, and 54 00:03:09,130 --> 00:03:12,730 S2: I imagine other firms hear something similar. And it's true 55 00:03:12,730 --> 00:03:15,650 S2: that most stock trading happens in the secondary market. So 56 00:03:15,690 --> 00:03:19,010 S2: we're passing an investment along from one person to the next. 57 00:03:19,010 --> 00:03:21,450 S2: And if you're not buying the IPO or the initial 58 00:03:21,450 --> 00:03:24,930 S2: public offering of a company, they don't necessarily see this money. 59 00:03:25,610 --> 00:03:28,169 S2: But investment is ownership at the end of the day. 60 00:03:28,610 --> 00:03:30,970 S2: And I use the example a lot. If I own 61 00:03:31,010 --> 00:03:33,810 S2: a tobacco stock, even though I purchased it on the 62 00:03:33,810 --> 00:03:37,330 S2: secondary market, I need that business to be successful. If 63 00:03:37,330 --> 00:03:40,410 S2: the industry or the business that I'm purchasing is tobacco, 64 00:03:40,930 --> 00:03:43,330 S2: then the only ultimate success there is for them to 65 00:03:43,330 --> 00:03:45,770 S2: be more profitable is to sell more product and to 66 00:03:45,810 --> 00:03:48,810 S2: cause more people to be addicted to their product. Um, 67 00:03:48,810 --> 00:03:52,450 S2: and shareholders really do have a voice as well. We 68 00:03:52,450 --> 00:03:55,250 S2: vote proxies here at Timothy plan and you can engage 69 00:03:55,250 --> 00:03:59,390 S2: with companies. And for many believers, the goal is really 70 00:03:59,390 --> 00:04:04,070 S2: faithful stewardship, not profiting from businesses that conflict with their convictions. 71 00:04:04,310 --> 00:04:08,270 S1: Yeah. Excellent. Now, another concern, Brian, we often hear is 72 00:04:08,270 --> 00:04:12,910 S1: that screening companies could limit diversification, leaving investors with a 73 00:04:12,910 --> 00:04:16,270 S1: smaller pool to choose from. Is that something investors should 74 00:04:16,270 --> 00:04:17,150 S1: be concerned about? 75 00:04:17,190 --> 00:04:21,510 S2: Quite honestly, no. Even with the strictest of screening interpretations, 76 00:04:21,510 --> 00:04:25,229 S2: which I would put Timothy plan in that category, we 77 00:04:25,230 --> 00:04:30,550 S2: still have approximately 90% of the investable universe available to 78 00:04:30,589 --> 00:04:34,790 S2: be invested in. And with good fund management and sound fundamentals, 79 00:04:35,150 --> 00:04:37,110 S2: you may lose some of the biggest names that are 80 00:04:37,110 --> 00:04:39,710 S2: out there, but there are plenty to choose from. And 81 00:04:39,710 --> 00:04:43,390 S2: you can really diversify across asset classes and truly achieve 82 00:04:43,390 --> 00:04:44,750 S2: the returns you're looking for. 83 00:04:45,150 --> 00:04:48,310 S1: Excellent. Well, thanks for clearing those up. You all have 84 00:04:48,310 --> 00:04:51,029 S1: been at this a long time at Timothy Plan, haven't you? 85 00:04:51,310 --> 00:04:53,029 S2: Yeah. Rob, you know, at the end of the day, 86 00:04:53,070 --> 00:04:55,630 S2: we're 32 years of doing this. Timothy plan has proven 87 00:04:55,630 --> 00:04:57,820 S2: that this is more than just a nice concept. 88 00:04:57,980 --> 00:05:00,980 S1: It is the way to invest in increasingly. So. Brian, 89 00:05:00,980 --> 00:05:02,100 S1: thanks for your time today. 90 00:05:02,220 --> 00:05:02,940 S2: Thank you Rob. 91 00:05:03,180 --> 00:05:06,020 S1: Our guest today has been Brian Blumberg, president of Timothy. 92 00:05:06,060 --> 00:05:09,539 S1: Plan to learn more about their faith based investment funds 93 00:05:09,580 --> 00:05:16,020 S1: visit Timothy plan.com. That's Timothy plan.com. All right. Your calls 94 00:05:16,020 --> 00:05:19,979 S1: are next 800 525 7000. We'll be right back. 95 00:05:31,380 --> 00:05:34,460 S3: The opinions offered during this program represent the personal or 96 00:05:34,460 --> 00:05:38,900 S3: professional opinions of the participants given for informational purposes only. 97 00:05:39,020 --> 00:05:42,420 S3: Any information provided is not intended to replace advice from 98 00:05:42,420 --> 00:05:46,900 S3: a financial, medical, legal or other professional who understands your 99 00:05:46,900 --> 00:05:48,420 S3: specific situation. 100 00:05:55,500 --> 00:05:57,170 S1: Great to have you with us today on faith and 101 00:05:57,170 --> 00:05:59,890 S1: Finance Live. I'm Rob West. Well, in just a moment, 102 00:05:59,890 --> 00:06:02,929 S1: we'll begin taking your calls and questions, which means this 103 00:06:02,930 --> 00:06:05,930 S1: is your cue to call. We've got lines open. We're 104 00:06:05,930 --> 00:06:08,930 S1: ready for you. Anything on your mind today? Perhaps over 105 00:06:08,930 --> 00:06:11,410 S1: the Easter weekend. And I trust you had a wonderful 106 00:06:11,850 --> 00:06:16,050 S1: celebration of Easter, the most important holiday for us as 107 00:06:16,050 --> 00:06:22,210 S1: Christ followers, as we celebrate the resurrection of our Savior Jesus. 108 00:06:22,210 --> 00:06:25,529 S1: And we had an amazing time at our family. We had. 109 00:06:25,570 --> 00:06:29,010 S1: We were divided. A few of, uh, my family, my 110 00:06:29,010 --> 00:06:31,250 S1: wife and a couple of my kids traveling on a 111 00:06:31,250 --> 00:06:33,690 S1: mission trip. But I was at home with a couple 112 00:06:33,690 --> 00:06:36,530 S1: of others and we just had a great time together. 113 00:06:36,529 --> 00:06:39,530 S1: We look forward to all being back together soon, but nevertheless, 114 00:06:39,529 --> 00:06:42,089 S1: it was an incredible weekend. But if there was something 115 00:06:42,089 --> 00:06:45,370 S1: you were thinking about in your financial life, perhaps the 116 00:06:45,370 --> 00:06:47,529 S1: last few days or over the weekend, you'd like to 117 00:06:47,529 --> 00:06:50,049 S1: talk about it, we'd love to chat with you. Perhaps 118 00:06:50,050 --> 00:06:53,330 S1: it's investing and just how to navigate this market, which, 119 00:06:53,370 --> 00:06:57,960 S1: by the way, ended higher today as investors hoping for 120 00:06:57,960 --> 00:07:01,080 S1: a last minute ceasefire and good news related to the 121 00:07:01,080 --> 00:07:04,279 S1: Strait of Hormuz. That will be playing out over the 122 00:07:04,279 --> 00:07:08,960 S1: next 24 hours. But nevertheless, the market's saying perhaps that's 123 00:07:08,960 --> 00:07:11,160 S1: going to turn out the way we want and the 124 00:07:11,160 --> 00:07:14,880 S1: market across all of the big indexes higher today. Perhaps 125 00:07:14,880 --> 00:07:16,680 S1: you're looking to pay off some debt or you want 126 00:07:16,680 --> 00:07:20,400 S1: to give wisely, or you're preparing the next steward. Maybe 127 00:07:20,400 --> 00:07:23,920 S1: you're just looking to protect yourself from scams. Those are 128 00:07:24,000 --> 00:07:26,800 S1: more rampant than ever. Whatever's on your mind today, call 129 00:07:26,800 --> 00:07:33,200 S1: right now 800 525 7000. That's 800 525 7000, and 130 00:07:33,200 --> 00:07:35,680 S1: we'll look forward to diving into those questions here in 131 00:07:35,680 --> 00:07:38,160 S1: just a moment. You know, we started today by talking 132 00:07:38,160 --> 00:07:41,720 S1: about investing. And I love when we get to talk 133 00:07:41,720 --> 00:07:44,280 S1: to some of the asset managers like Brian Mumford and 134 00:07:44,280 --> 00:07:48,680 S1: the team at Timothy that are building portfolios every day 135 00:07:48,680 --> 00:07:52,480 S1: for investors in a God honoring way. This whole space 136 00:07:52,480 --> 00:07:55,910 S1: of faith based investing is, is really just exploding. And 137 00:07:55,910 --> 00:07:58,150 S1: that still may be a brand new idea for you. 138 00:07:58,190 --> 00:08:01,710 S1: You know, for many believers, investing feels like a purely 139 00:08:01,710 --> 00:08:06,310 S1: financial task, something that belongs in spreadsheets rather than scripture. 140 00:08:06,670 --> 00:08:11,270 S1: Retirement accounts, stock portfolios, mutual funds, ETF they can all 141 00:08:11,270 --> 00:08:14,750 S1: seem disconnected from our discipleship. But is that how God 142 00:08:14,750 --> 00:08:18,270 S1: intended it? You know what? If wise and purposeful investing 143 00:08:18,430 --> 00:08:21,990 S1: could serve others and reflect God's kingdom? Well, I think 144 00:08:21,990 --> 00:08:24,910 S1: that's the opportunity we have, whether we realize it or not. 145 00:08:25,110 --> 00:08:29,110 S1: Our investments tell a story. They reveal what matters to 146 00:08:29,150 --> 00:08:32,350 S1: us and what we want to see grow, and whose 147 00:08:32,350 --> 00:08:35,510 S1: kingdom we're ultimately seeking to build. You know, this was 148 00:08:35,510 --> 00:08:38,470 S1: God's design from the beginning that we as his people 149 00:08:38,470 --> 00:08:42,950 S1: would participate in cultivating his world. In Genesis one and two, 150 00:08:43,150 --> 00:08:46,829 S1: we're called to be fruitful, to multiply, to steward creation. 151 00:08:46,830 --> 00:08:50,989 S1: Investing at its best is one of the modern avenues 152 00:08:50,990 --> 00:08:55,460 S1: by which that happens. It's the process of channeling resources 153 00:08:55,620 --> 00:09:00,140 S1: into productive ventures that can bless and serve others. You know, 154 00:09:00,179 --> 00:09:04,339 S1: this vision of faithful participation is throughout Scripture. I'll take 155 00:09:04,340 --> 00:09:07,820 S1: you to Jeremiah 29 seven, but seek the welfare of 156 00:09:07,820 --> 00:09:11,780 S1: the city where I have sent you into exile. You see, 157 00:09:11,820 --> 00:09:14,579 S1: God calls his people to seek the welfare of the city. 158 00:09:14,820 --> 00:09:17,780 S1: Even while living in exile. And that's a mission I 159 00:09:17,780 --> 00:09:22,420 S1: think we still carry today, one that investing can uniquely support. 160 00:09:22,420 --> 00:09:26,700 S1: When we wisely invest in businesses and communities with wisdom, 161 00:09:26,980 --> 00:09:30,579 S1: we can seek to advance the common good. Investing supplies 162 00:09:30,580 --> 00:09:35,339 S1: capital for human flourishing by resourcing businesses that produce goods 163 00:09:35,340 --> 00:09:39,140 S1: and services, creating jobs and supplying people with the things 164 00:09:39,140 --> 00:09:42,780 S1: they need. And this promotes not only dignity, but justice 165 00:09:42,780 --> 00:09:47,740 S1: and opportunity in ways that reflect God's care for the world. Now, 166 00:09:47,780 --> 00:09:50,300 S1: there's a variety of approaches we can take when it 167 00:09:50,300 --> 00:09:55,720 S1: comes to how we invest. Some choose to avoid certain industries. 168 00:09:55,960 --> 00:09:59,280 S1: This is the most commonly understood way of going about 169 00:09:59,280 --> 00:10:02,760 S1: faith based investing, where we're screening out companies that might 170 00:10:02,760 --> 00:10:06,160 S1: be misaligned with our values. That's a very appropriate way 171 00:10:06,160 --> 00:10:09,480 S1: to begin. What are those industries you don't want to 172 00:10:09,480 --> 00:10:12,120 S1: have any part of? Maybe it's the gambling industry which 173 00:10:12,120 --> 00:10:15,840 S1: is exploding right now. Or maybe it's, you know, vices, 174 00:10:15,880 --> 00:10:18,280 S1: you know, alcohol and tobacco. You you want to get 175 00:10:18,280 --> 00:10:21,199 S1: rid of that in your portfolio. Maybe it's a pharmaceutical 176 00:10:21,200 --> 00:10:25,200 S1: company creating a drug that is misaligned with your values. 177 00:10:25,200 --> 00:10:29,840 S1: You can eliminate those companies. That's very possible. Many investment advisors, 178 00:10:29,840 --> 00:10:34,680 S1: mutual fund families, ETF providers, they're already doing that. But 179 00:10:34,679 --> 00:10:37,880 S1: a second way to get involved in faith based investing 180 00:10:37,880 --> 00:10:41,560 S1: is as you own those shares of a company to 181 00:10:42,040 --> 00:10:45,880 S1: engage with company leadership. Now you may do that yourself 182 00:10:45,880 --> 00:10:49,200 S1: by voting proxies. You may entrust that to an investment 183 00:10:49,200 --> 00:10:53,350 S1: manager like your advisor or a mutual fund family. Many 184 00:10:53,350 --> 00:10:56,470 S1: of these, like Timothy and others that we talked to today, 185 00:10:56,670 --> 00:11:01,390 S1: are actively engaging with company leadership on behalf of their 186 00:11:01,390 --> 00:11:06,230 S1: shareholders to advocate for religious freedom and human and values 187 00:11:06,230 --> 00:11:10,429 S1: that would align with human dignity. That's very possible. And 188 00:11:10,429 --> 00:11:13,350 S1: in fact, it's very effective. And then the third way 189 00:11:13,350 --> 00:11:18,950 S1: is to specifically invest in companies in ventures that promote 190 00:11:18,950 --> 00:11:22,550 S1: human flourishing. Whereas we might avoid or engage. This is 191 00:11:22,550 --> 00:11:25,630 S1: what we refer to as the third category called embrace, 192 00:11:25,830 --> 00:11:30,510 S1: where we're specifically choosing companies. Yes, they have a compelling 193 00:11:30,510 --> 00:11:33,430 S1: value to bring to shareholders, but at the same time, 194 00:11:33,590 --> 00:11:36,990 S1: they're also promoting human flourishing. They might even be seeking 195 00:11:36,990 --> 00:11:40,750 S1: a kingdom outcome with regard to their investments. These are 196 00:11:40,750 --> 00:11:43,390 S1: all very possible. And in fact, I think we're not 197 00:11:43,390 --> 00:11:46,630 S1: far away from this just being normal in terms of 198 00:11:46,630 --> 00:11:50,830 S1: how Christians invest. And it's an exciting development in the 199 00:11:50,830 --> 00:11:53,500 S1: investment space we're going to continue to talk about it 200 00:11:53,500 --> 00:11:57,219 S1: and highlight those companies like Timothy Plan and Guidestone and 201 00:11:57,220 --> 00:12:00,460 S1: even Tied and One Ascent and others that are doing 202 00:12:00,460 --> 00:12:03,900 S1: incredible work in this area. All right. The calls are 203 00:12:03,900 --> 00:12:06,620 S1: filling up. We're ready to dive in today. Let's begin 204 00:12:06,620 --> 00:12:09,260 S1: in Illinois. Judy, you'll be our first caller. Go ahead. 205 00:12:09,620 --> 00:12:12,460 S4: Oh, hi. Thank you guys for your program. Um, I 206 00:12:12,500 --> 00:12:17,260 S4: am a very lucky gal. I just turned 65 this weekend, and, um. 207 00:12:17,300 --> 00:12:18,179 S1: Happy birthday. 208 00:12:18,820 --> 00:12:20,940 S4: Thank you. And I signed up for my part a 209 00:12:20,940 --> 00:12:23,460 S4: and all that. Good thing I'm still working full time 210 00:12:23,460 --> 00:12:28,020 S4: and I have a 401 K and, um, because, um, 211 00:12:28,020 --> 00:12:30,340 S4: I'm working, you know, I have my work has a 212 00:12:30,340 --> 00:12:33,540 S4: separate 401 K than when my, when my husband was working, 213 00:12:33,540 --> 00:12:36,700 S4: he's retired and he has his own 401 K so 214 00:12:36,700 --> 00:12:40,580 S4: there are different companies. And my question is, um, I 215 00:12:40,620 --> 00:12:43,740 S4: am by the grace of God, I also am very 216 00:12:43,780 --> 00:12:47,420 S4: happy to have, um, you know, survived a very, um, 217 00:12:47,740 --> 00:12:51,020 S4: an illness, which is I'm just glorifying God for. So 218 00:12:51,059 --> 00:12:55,090 S4: I'm really thinking about retiring. You know, not to stay 219 00:12:55,130 --> 00:12:57,969 S4: till like 67 and all that. I was really kind 220 00:12:58,010 --> 00:13:01,329 S4: of considering it. So my question is this A do 221 00:13:01,370 --> 00:13:04,610 S4: my husband and I have to take our monies in 222 00:13:04,610 --> 00:13:10,329 S4: our working history and put them into like one company, like, um, 223 00:13:10,370 --> 00:13:13,530 S4: a good, you know, money, like should he and I 224 00:13:13,530 --> 00:13:15,370 S4: take all of our retirement and put it in one 225 00:13:15,370 --> 00:13:18,210 S4: account so that we can determine what we need to 226 00:13:18,210 --> 00:13:20,930 S4: live on, you know, every year. And then should we 227 00:13:20,970 --> 00:13:24,370 S4: consider it and once you retire, um, is it good 228 00:13:24,370 --> 00:13:26,969 S4: to get counsel from a money guy to see if 229 00:13:26,970 --> 00:13:30,890 S4: you can earn, you know, earn money even though you're 230 00:13:30,890 --> 00:13:34,170 S4: retired and you're on Social Security, you know, some people 231 00:13:34,170 --> 00:13:36,570 S4: get a gig and they get extra money there and there. 232 00:13:36,570 --> 00:13:39,290 S4: But can your money work for you after your employer 233 00:13:39,290 --> 00:13:42,010 S4: stops putting money in your 401 K because you're retired? 234 00:13:42,450 --> 00:13:45,890 S1: Yeah, absolutely. Boy, these are great questions, Judy. Well, first 235 00:13:45,890 --> 00:13:49,570 S1: of all, uh, happy birthday. Glad you got some of 236 00:13:49,570 --> 00:13:52,520 S1: those things out of the way, like Medicare, which you 237 00:13:52,520 --> 00:13:55,439 S1: need to do in that window. Shortly before or after 238 00:13:55,440 --> 00:13:58,280 S1: you turn 65. So you check that box and now 239 00:13:58,280 --> 00:14:00,400 S1: you're right, you're on to the next thing, which is 240 00:14:00,400 --> 00:14:03,679 S1: how do we think about these retirement accounts? Should we 241 00:14:03,679 --> 00:14:06,600 S1: roll them out of our 401 where they were with 242 00:14:06,600 --> 00:14:10,600 S1: previous employers or current employers? How should they be managed? 243 00:14:10,720 --> 00:14:12,480 S1: And now if we do roll them out and we 244 00:14:12,480 --> 00:14:15,760 S1: have unlimited investment options, should we hire somebody to help 245 00:14:15,760 --> 00:14:18,880 S1: us manage those? All great questions. I'll tackle each of 246 00:14:18,880 --> 00:14:21,080 S1: those right after the break. Stay with us. We'll be 247 00:14:21,080 --> 00:14:30,000 S1: right back. Great to have you with us today on 248 00:14:30,000 --> 00:14:32,560 S1: Faith and Finance Live. I'm Rob West. We're taking your 249 00:14:32,560 --> 00:14:37,160 S1: calls and questions today at 800 525 7000. Again, that's 250 00:14:37,160 --> 00:14:40,960 S1: 800 525 7000. Before the break, we were talking to 251 00:14:41,000 --> 00:14:43,680 S1: Judy in Illinois. She just turned 65 over the weekend, 252 00:14:43,760 --> 00:14:47,280 S1: has been taking care of the Medicare enrollment, but still 253 00:14:47,280 --> 00:14:49,800 S1: working full time. And just wondering, as she and her 254 00:14:49,870 --> 00:14:54,350 S1: husband transition into this retirement season, and whether they stop 255 00:14:54,350 --> 00:14:57,190 S1: work entirely, or maybe do some work on the side 256 00:14:57,190 --> 00:15:00,190 S1: and get involved in maybe some part time work, they're 257 00:15:00,190 --> 00:15:04,150 S1: just wondering how they should think about both consolidating their 258 00:15:04,150 --> 00:15:08,190 S1: retirement accounts, and then secondly, how that money can continue 259 00:15:08,190 --> 00:15:11,109 S1: to work for them. And, um, these are both great 260 00:15:11,110 --> 00:15:15,790 S1: thoughts to consider here, Judy. I think one important distinction 261 00:15:15,790 --> 00:15:20,630 S1: is that retirement accounts, although you can consolidate, um, all 262 00:15:20,670 --> 00:15:23,950 S1: of the accounts in your name into one account, assuming 263 00:15:23,950 --> 00:15:27,390 S1: they're the same tax treatment, um, you would not be 264 00:15:27,430 --> 00:15:31,030 S1: able to have joint retirement accounts. Retirement accounts are all 265 00:15:31,030 --> 00:15:35,310 S1: based on an individual. So if you had multiple 401 s, 266 00:15:35,310 --> 00:15:39,270 S1: maybe one from a previous employer, one from an active employer, 267 00:15:39,630 --> 00:15:43,150 S1: all of those could be rolled into one IRA individual 268 00:15:43,150 --> 00:15:46,990 S1: retirement account in your name. Your husband could do the same, 269 00:15:47,310 --> 00:15:50,450 S1: but you would have to keep his accounts in in 270 00:15:50,490 --> 00:15:54,610 S1: his retirement portfolio consolidated into one and yours in. In 271 00:15:54,650 --> 00:15:58,690 S1: your account. Now, one advisor could manage them and they could. 272 00:15:58,930 --> 00:16:02,050 S1: Both of those retirement accounts could be at one institution, 273 00:16:02,370 --> 00:16:04,010 S1: but you would not be able to put them together 274 00:16:04,010 --> 00:16:06,170 S1: as a joint account in the same way you would, 275 00:16:06,610 --> 00:16:10,370 S1: you know, with a regular taxable brokerage account. Does that 276 00:16:10,370 --> 00:16:10,970 S1: make sense? 277 00:16:11,330 --> 00:16:13,770 S4: Yeah. Like a joint bank account. It won't happen. 278 00:16:14,410 --> 00:16:17,610 S1: No, not with a retirement account. Now, I do like 279 00:16:17,610 --> 00:16:21,650 S1: the idea of you rolling any old accounts into an IRA. 280 00:16:21,650 --> 00:16:25,370 S1: And then when you separate from service from your current employer, 281 00:16:25,370 --> 00:16:27,730 S1: that's usually the time that they'll let you roll that 282 00:16:27,730 --> 00:16:30,010 S1: out as well. Why would you do that? Well, you're 283 00:16:30,010 --> 00:16:32,610 S1: just going to have more control over it, more control 284 00:16:32,610 --> 00:16:36,250 S1: over who manages it, more control over the fees, more 285 00:16:36,250 --> 00:16:40,050 S1: control over the investments instead of that limited menu inside 286 00:16:40,050 --> 00:16:42,610 S1: the 401 K that you and your husband have had. 287 00:16:42,650 --> 00:16:46,010 S1: You're essentially going to have an unlimited number of investments 288 00:16:46,010 --> 00:16:49,120 S1: that you can take advantage of, or an advisor could 289 00:16:49,160 --> 00:16:51,720 S1: on your behalf. And that's what I would recommend. I mean, 290 00:16:51,760 --> 00:16:54,320 S1: you all have worked your whole life to amass this 291 00:16:54,320 --> 00:16:57,000 S1: nest egg, and now you're asking the Lord what's next? 292 00:16:57,360 --> 00:17:01,680 S1: But if what's next doesn't include you all becoming proficient 293 00:17:01,680 --> 00:17:05,479 S1: as money managers, then I would delegate that responsibility to 294 00:17:05,520 --> 00:17:08,480 S1: an advisor, preferably, in my opinion, one who shares your 295 00:17:08,480 --> 00:17:12,199 S1: values and has a you know, where you understand, you know, 296 00:17:12,240 --> 00:17:15,160 S1: their fee structure, you understand how they're going to invest 297 00:17:15,160 --> 00:17:18,119 S1: it in a way that's consistent with your risk tolerance, 298 00:17:18,160 --> 00:17:21,680 S1: goals and objectives. Um, but that person could really take 299 00:17:21,680 --> 00:17:26,000 S1: over that responsibility. It keeps kind of an emotional arm's 300 00:17:26,000 --> 00:17:28,199 S1: length from the portfolio. So if we got into a 301 00:17:28,200 --> 00:17:30,800 S1: recession and the market was down, you wouldn't want to 302 00:17:30,800 --> 00:17:33,760 S1: be making kind of rash moves. An advisor is going 303 00:17:33,800 --> 00:17:36,280 S1: to really help with that. He or she could have 304 00:17:36,280 --> 00:17:40,480 S1: a rules based approach to their investment strategy and make 305 00:17:40,520 --> 00:17:42,320 S1: sure that you're in the right things and that you 306 00:17:42,320 --> 00:17:46,080 S1: don't have too much risk in the portfolio, meaning you know, 307 00:17:46,080 --> 00:17:50,150 S1: too much in stocks versus fixed income or bonds or 308 00:17:50,150 --> 00:17:53,710 S1: treasuries that are going to just reduce the volatility. Those 309 00:17:53,710 --> 00:17:55,950 S1: are all the things that an advisor would do. Not 310 00:17:55,950 --> 00:17:59,790 S1: to mention helping you think about tax efficiency, which becomes 311 00:17:59,790 --> 00:18:04,110 S1: really critical in this season because as your income drops, 312 00:18:04,950 --> 00:18:07,790 S1: especially before Social Security, if you're not going to take 313 00:18:07,790 --> 00:18:11,430 S1: that until full retirement age or later, there's an opportunity 314 00:18:11,630 --> 00:18:16,870 S1: to fill up those lower brackets. Um, and perhaps convert 315 00:18:16,869 --> 00:18:22,869 S1: some of your traditional retirement accounts to Roth. Um, and 316 00:18:22,869 --> 00:18:25,950 S1: some other strategies like that that can just help you 317 00:18:25,950 --> 00:18:29,950 S1: maintain tax efficiency. So all of that is what an 318 00:18:29,950 --> 00:18:33,430 S1: advisor would do for you. And I'd recommend you go to, uh, 319 00:18:33,470 --> 00:18:38,310 S1: find a.com, find a certified kingdom advisor there in Illinois. 320 00:18:38,350 --> 00:18:41,109 S1: Perhaps interview 2 or 3, find the one that's the 321 00:18:41,109 --> 00:18:43,470 S1: best fit. And that would be the person that would 322 00:18:43,470 --> 00:18:46,109 S1: journey with you during this season to not only do 323 00:18:46,109 --> 00:18:49,460 S1: the financial planning and help you with the tax planning, 324 00:18:49,460 --> 00:18:51,899 S1: but also take over the investment management. 325 00:18:52,420 --> 00:18:54,739 S4: All right. Well, that is very helpful to me. I 326 00:18:54,740 --> 00:18:55,619 S4: really thank you. 327 00:18:56,180 --> 00:18:58,100 S1: I'm happy to do it. I'm going to send you 328 00:18:58,100 --> 00:19:01,540 S1: a book for you and your husband to read. It's called, uh, 329 00:19:01,820 --> 00:19:05,580 S1: Uncommon Retirement by my friend Jeff Heynen. It's really a 330 00:19:05,580 --> 00:19:08,139 S1: thoughtful look at this fourth quarter of life through the 331 00:19:08,140 --> 00:19:11,660 S1: lens of biblical wisdom and how God designed us and 332 00:19:11,660 --> 00:19:13,419 S1: wired us, and how we can think out of the 333 00:19:13,460 --> 00:19:16,900 S1: box and not just accept the cultural view of retirement. 334 00:19:16,900 --> 00:19:19,100 S1: So I'll send it along as our gift to you. 335 00:19:19,100 --> 00:19:21,500 S1: I know you're still working, but, uh, this is a 336 00:19:21,500 --> 00:19:24,179 S1: good time to do some preparation for what might come next. 337 00:19:24,180 --> 00:19:26,420 S1: So stay on the line, Judy. We'll get your information 338 00:19:26,420 --> 00:19:27,979 S1: and get that book out to you. Thanks for your 339 00:19:27,980 --> 00:19:30,940 S1: call today. Let's go to, uh, Ohio. Patsy. How can 340 00:19:30,940 --> 00:19:31,419 S1: I help? 341 00:19:32,260 --> 00:19:38,060 S5: Hi. Um, I need to better understand. RMDs required minimum distributions. 342 00:19:38,060 --> 00:19:41,740 S5: I'm 73, and this year I have to start doing that. 343 00:19:41,740 --> 00:19:44,900 S5: So it's the goal. I know they take it out 344 00:19:44,900 --> 00:19:47,090 S5: so that the government can get their taxes, but it's 345 00:19:47,090 --> 00:19:49,690 S5: the end goal that the 401 K would be empty. 346 00:19:49,890 --> 00:19:53,170 S5: I'm sorry the IRA would be empty. Or what is 347 00:19:53,170 --> 00:19:55,850 S5: the outcome? How long do you have to do it? 348 00:19:56,210 --> 00:19:58,810 S1: Yeah, you would do it for the rest of your life. 349 00:19:58,810 --> 00:20:03,450 S1: And so unless you take more, uh, than is required, 350 00:20:03,450 --> 00:20:05,129 S1: it's going to take quite a while for you to 351 00:20:05,170 --> 00:20:09,130 S1: empty that out. But yes, the government gave you that 352 00:20:09,130 --> 00:20:12,370 S1: tax break and they want you to start paying taxes 353 00:20:12,369 --> 00:20:15,690 S1: on that money. Uh, so this is the minimum amount 354 00:20:15,890 --> 00:20:21,690 S1: the IRS requires you to withdraw each year from traditional 355 00:20:21,690 --> 00:20:26,890 S1: retirement accounts, traditional meaning pre-tax. So any 401 K's or 356 00:20:26,890 --> 00:20:31,250 S1: traditional IRAs where as you made the contribution, you got 357 00:20:31,250 --> 00:20:34,370 S1: the deduction and therefore you've not paid the tax on 358 00:20:34,369 --> 00:20:37,649 S1: the money. So not Roth, but traditional. Those are the 359 00:20:37,650 --> 00:20:41,490 S1: only accounts that apply. And you would have to take 360 00:20:41,530 --> 00:20:45,290 S1: a minimum out, which is your required minimum distribution. And 361 00:20:45,290 --> 00:20:47,800 S1: it's a function of the balance of the end of 362 00:20:48,000 --> 00:20:53,520 S1: each year and something called your life expectancy factor. And 363 00:20:53,520 --> 00:20:58,120 S1: that life expectancy factor naturally increases as you get older. 364 00:20:58,560 --> 00:21:01,800 S1: And it's a small percentage each year that grows each 365 00:21:01,800 --> 00:21:05,119 S1: year over time. But it's the minimum that the IRS 366 00:21:05,160 --> 00:21:07,240 S1: is going to make you take out. 367 00:21:09,440 --> 00:21:12,359 S5: And so at the end of does it go on? 368 00:21:12,400 --> 00:21:14,600 S5: You said for the rest of your life. So there's 369 00:21:14,600 --> 00:21:18,240 S5: no point in time when they would expect the IRA 370 00:21:18,240 --> 00:21:19,040 S5: to be empty. 371 00:21:20,440 --> 00:21:23,560 S1: Yeah, that's a good question. So, uh, you know, it's 372 00:21:23,560 --> 00:21:27,280 S1: designed to spread it out over your remaining life expectancy. 373 00:21:27,280 --> 00:21:30,320 S1: So if you start at 73, which is your required minimum, 374 00:21:30,640 --> 00:21:35,399 S1: probably 25 to 30 years would be the typical, uh, 375 00:21:35,400 --> 00:21:38,560 S1: time range. If you just take the minimum each year 376 00:21:38,720 --> 00:21:40,760 S1: for you to deplete it. So it really just depends 377 00:21:40,760 --> 00:21:43,720 S1: on how long you live. I hope that helps. Patsy. 378 00:21:44,000 --> 00:21:45,699 S1: I want to mention one other thing, which I'll do 379 00:21:45,740 --> 00:21:49,100 S1: after the break called a qualified charitable distribution. We'll be 380 00:21:49,100 --> 00:21:59,459 S1: right back. Thanks for joining us today on Faith and 381 00:21:59,460 --> 00:22:02,060 S1: Finance Live. I'm Rob West. We've got some lines open. 382 00:22:02,060 --> 00:22:04,340 S1: We're ready for you. If you've got a question today, 383 00:22:04,340 --> 00:22:10,540 S1: call right now 800 525 7000. Again that's 800 525 7000. 384 00:22:10,580 --> 00:22:12,900 S1: Let's go to Minnesota Jason. Go ahead. 385 00:22:13,660 --> 00:22:16,820 S6: Hey, Rob. God bless you. Thank you so much, man. 386 00:22:16,859 --> 00:22:18,659 S1: I appreciate it. Absolutely. 387 00:22:20,020 --> 00:22:25,220 S6: So I guess my biggest thing is I'm 53 years old. 388 00:22:25,780 --> 00:22:29,060 S6: I've been working a full time job for pretty steady 389 00:22:29,100 --> 00:22:31,100 S6: at four years old. And I'm finding I got a 390 00:22:31,100 --> 00:22:34,700 S6: house I bought, my wife and I, she became disabled 391 00:22:34,700 --> 00:22:38,139 S6: about six months after getting to know her. The truly 392 00:22:38,140 --> 00:22:41,300 S6: blessing of how God worked in my life, meeting her 393 00:22:41,300 --> 00:22:43,739 S6: and stuff. It's a long story, but I mean, I 394 00:22:43,740 --> 00:22:46,690 S6: can make like the southern woman was a. To make 395 00:22:46,690 --> 00:22:49,409 S6: a long story short, we are very blessed to be together. 396 00:22:50,369 --> 00:22:53,730 S6: So but the thing is, when I'm struggling with is 397 00:22:54,810 --> 00:22:58,810 S6: she when she was basically married once before and had 398 00:22:58,810 --> 00:23:02,970 S6: some issues, basically, um, the make of financial means and 399 00:23:02,970 --> 00:23:07,970 S6: stuff like that. Her former um, significant. I just work 400 00:23:07,970 --> 00:23:10,889 S6: underneath they will now she only gets a minimal amount 401 00:23:10,890 --> 00:23:15,649 S6: of social security income and my income. So essentially, I'm 402 00:23:15,690 --> 00:23:18,530 S6: wanting to put trust into someone that you can give 403 00:23:18,530 --> 00:23:21,170 S6: me a phone number to so I can just do 404 00:23:21,210 --> 00:23:26,330 S6: a full financial profile for me. So longevity to be 405 00:23:26,330 --> 00:23:31,449 S6: able to build basically a long term retirement after I 406 00:23:31,450 --> 00:23:35,850 S6: get done with working in Minnesota, basically. And maybe there 407 00:23:35,850 --> 00:23:37,730 S6: might be an option that we might, we might want 408 00:23:37,770 --> 00:23:40,210 S6: to move to Texas or not, but that's just maybe 409 00:23:40,250 --> 00:23:44,240 S6: a hit or miss deal later. But I'm See these 58. 410 00:23:44,280 --> 00:23:46,760 S6: I think we don't measure age. We just love each 411 00:23:46,760 --> 00:23:49,200 S6: other eternally until God take us home, you know? 412 00:23:49,840 --> 00:23:54,359 S1: Yeah. What a great story, Jason. I'm delighted to hear that. Yeah. 413 00:23:54,359 --> 00:23:56,360 S1: I think this could make a lot of sense. And, 414 00:23:56,400 --> 00:23:59,600 S1: you know, perhaps you all selecting an advisor that you 415 00:23:59,600 --> 00:24:03,040 S1: would establish a relationship with together. And I would encourage 416 00:24:03,040 --> 00:24:05,840 S1: you to both be a part of that selection process 417 00:24:05,840 --> 00:24:10,720 S1: because your ability to communicate well, especially if you married 418 00:24:10,920 --> 00:24:14,400 S1: a little later in life. Um, you know, it can be, 419 00:24:14,640 --> 00:24:17,919 S1: you know, we bring all of our kind of habits 420 00:24:17,920 --> 00:24:22,560 S1: around money. Uh, our relationship with money, um, how we 421 00:24:22,560 --> 00:24:26,919 S1: view money is largely formed by, you know, those early years, 422 00:24:26,960 --> 00:24:31,359 S1: even while we were a child, just how money was handled. Uh, 423 00:24:31,359 --> 00:24:34,080 S1: you know how we're wired. Our temperament has a lot 424 00:24:34,080 --> 00:24:36,880 S1: to do with how we manage money. And so having 425 00:24:36,880 --> 00:24:40,000 S1: that third party that can really help you all pull 426 00:24:40,000 --> 00:24:42,640 S1: out what are your God given goals and objectives? Where 427 00:24:42,830 --> 00:24:44,590 S1: is God leading you in terms of where you're going 428 00:24:44,630 --> 00:24:46,990 S1: to live and what you're going to do? What are the, 429 00:24:47,590 --> 00:24:49,830 S1: you know, the things that you're pursuing as a couple 430 00:24:49,830 --> 00:24:52,150 S1: and as a family? And then how can money be 431 00:24:52,150 --> 00:24:56,590 S1: a tool to support that and putting a plan together? Um, 432 00:24:56,670 --> 00:24:58,990 S1: you know, to, uh, to manage money in such a 433 00:24:58,990 --> 00:25:01,310 S1: way that it furthers those God given goals, I think 434 00:25:01,310 --> 00:25:04,590 S1: is really key. So that's where an advisor can just 435 00:25:04,590 --> 00:25:08,750 S1: really be helpful. What you'd want is a comprehensive financial 436 00:25:08,750 --> 00:25:12,990 S1: planner because more than having somebody who can manage the money, 437 00:25:13,030 --> 00:25:15,510 S1: pick the investments. What you really need is a, a 438 00:25:15,550 --> 00:25:19,629 S1: true financial plan to look at the next several decades 439 00:25:19,630 --> 00:25:22,590 S1: and really help you think about what is the best 440 00:25:22,590 --> 00:25:26,470 S1: investment strategy, how do I minimize taxes? How do I 441 00:25:26,470 --> 00:25:29,149 S1: honor my giving that I want to do? And do 442 00:25:29,150 --> 00:25:31,910 S1: I have the proper insurance in place? So I'm offsetting 443 00:25:31,910 --> 00:25:35,350 S1: any risks that exist in my life. And, and as 444 00:25:35,350 --> 00:25:38,429 S1: a couple, all of those things can be dealt with, um, 445 00:25:38,430 --> 00:25:42,140 S1: by a financial planner, even. How much is enough? You know, 446 00:25:42,180 --> 00:25:45,820 S1: what is your ultimate accumulation goal based on the lifestyle 447 00:25:45,859 --> 00:25:48,580 S1: God has called you to? And then you at least 448 00:25:48,580 --> 00:25:50,820 S1: know what your target is. And you can determine, are 449 00:25:50,820 --> 00:25:54,020 S1: we on track ahead or behind? So I would head 450 00:25:54,020 --> 00:25:58,420 S1: to find a K.com do a zip code search there 451 00:25:58,420 --> 00:26:02,420 S1: in Minnesota. Go meet with a few certified Kingdom advisors and, 452 00:26:02,460 --> 00:26:05,780 S1: and you could, if you don't do the investment management, 453 00:26:05,780 --> 00:26:09,220 S1: you could pay just a flat fee for the financial planning. 454 00:26:09,220 --> 00:26:12,340 S1: Some would be for the entire plan, a flat fee, 455 00:26:12,380 --> 00:26:16,179 S1: some would be hourly. But just explain what you're looking for. 456 00:26:16,220 --> 00:26:18,380 S1: Find the person that you feel like is the best fit, 457 00:26:18,580 --> 00:26:20,260 S1: and I think that will get you pointed in the 458 00:26:20,260 --> 00:26:24,939 S1: right direction. So again, that website find a.com. Jason, I 459 00:26:24,940 --> 00:26:27,139 S1: hope that helps. We appreciate your call today, sir. Lord 460 00:26:27,140 --> 00:26:30,140 S1: bless you. Let's go to Georgia Carroll. Go ahead. Yeah. 461 00:26:30,500 --> 00:26:32,740 S7: Rob, I just want to know if there's any advantage 462 00:26:32,740 --> 00:26:34,380 S7: to having more than one credit card. 463 00:26:34,900 --> 00:26:35,340 S8: HMM. 464 00:26:35,940 --> 00:26:38,460 S1: Yeah, it's a good question. I would say you don't 465 00:26:38,460 --> 00:26:42,530 S1: need one card. Um, you know, there's always the temptation 466 00:26:42,530 --> 00:26:44,929 S1: to overspend. But if you're saying, listen, I'm disciplined. I 467 00:26:44,930 --> 00:26:47,890 S1: don't worry about that. That's fine. There's more to keep 468 00:26:47,890 --> 00:26:50,770 S1: up with. If you're using more than one card actively, 469 00:26:50,770 --> 00:26:55,250 S1: you've got multiple due dates, multiple accounts to, uh, to monitor. 470 00:26:55,290 --> 00:26:58,290 S1: I certainly wouldn't want you paying any kind of annual 471 00:26:58,290 --> 00:27:02,290 S1: fees to any card, not 1 or 2. Um, so 472 00:27:02,290 --> 00:27:05,570 S1: why would you have it? Well, I think, you know, 473 00:27:05,609 --> 00:27:10,250 S1: the having that second card, um, if you are, uh, 474 00:27:10,250 --> 00:27:12,369 S1: you know, carrying a balance, even if you're paying it 475 00:27:12,369 --> 00:27:15,210 S1: off every month, it's going to get your limit up higher, 476 00:27:15,410 --> 00:27:17,970 S1: which just means as you charge it up, let's say 477 00:27:17,970 --> 00:27:20,889 S1: you're using it for budgeted items. You do all of 478 00:27:20,890 --> 00:27:24,570 S1: your monthly spending on the card, or at least as 479 00:27:24,570 --> 00:27:27,130 S1: much as you're able, and then you pay it off. 480 00:27:27,530 --> 00:27:30,889 S1: If it's getting above 30% of the limit, even if 481 00:27:30,890 --> 00:27:33,730 S1: you're paying it in full, that's still starting to pull 482 00:27:33,730 --> 00:27:37,290 S1: your score down. So that second card, when you combine 483 00:27:37,330 --> 00:27:40,909 S1: the limits of the two cards, it means in the aggregate, 484 00:27:40,950 --> 00:27:44,909 S1: you're using a much lower portion of the total available 485 00:27:44,910 --> 00:27:47,790 S1: to you, and that's going to help you. It also 486 00:27:47,790 --> 00:27:51,470 S1: shows credit history depth. So it shows as a part 487 00:27:51,470 --> 00:27:55,150 S1: of the algorithm that you can manage multiple accounts responsibly 488 00:27:55,150 --> 00:27:58,070 S1: and keep them in good standing and paid on time. 489 00:27:58,070 --> 00:28:02,670 S1: So I guess the only other option would be if 490 00:28:02,710 --> 00:28:05,470 S1: you know, one card is lost or compromised, it would 491 00:28:05,470 --> 00:28:08,910 S1: give you a backup. And then the last thing would 492 00:28:08,910 --> 00:28:13,070 S1: be rewards optimization where, you know, some cards maybe do 493 00:28:13,109 --> 00:28:17,189 S1: cash back, others give travel points. And so depending upon 494 00:28:17,190 --> 00:28:20,030 S1: what you're doing or how you're using it, if you 495 00:28:20,030 --> 00:28:24,510 S1: have two cards with different rewards options, you may choose 496 00:28:24,510 --> 00:28:28,270 S1: one over the other to maximize your reward. Again, assuming 497 00:28:28,270 --> 00:28:31,189 S1: you're only using it for budgeted items, you're paying it 498 00:28:31,190 --> 00:28:33,670 S1: off in full and you're never paying any interest. Does 499 00:28:33,670 --> 00:28:34,430 S1: that make sense? 500 00:28:34,590 --> 00:28:35,670 S9: Yes it does. 501 00:28:36,790 --> 00:28:37,270 S1: Okay. 502 00:28:37,710 --> 00:28:41,340 S7: I have card, I use it. I'm probably over the 30%. 503 00:28:41,340 --> 00:28:44,380 S7: I'm sure I am okay, but I don't really care 504 00:28:44,420 --> 00:28:45,459 S7: about my credit score. 505 00:28:46,140 --> 00:28:49,380 S1: Yeah, well, unless you're looking to borrow some money, it 506 00:28:49,380 --> 00:28:52,260 S1: really doesn't matter at the end of the day. I mean, they, 507 00:28:52,260 --> 00:28:56,780 S1: they are used in in a roundabout way for insurance premiums. 508 00:28:56,940 --> 00:28:59,220 S1: But you know, in your situation, you probably have a 509 00:28:59,220 --> 00:29:02,540 S1: very high score. I'm sure you've managed credit wisely. You've 510 00:29:02,540 --> 00:29:05,660 S1: got a long history here, so it's probably not something 511 00:29:05,660 --> 00:29:08,340 S1: to be concerned about. I would say the only reason 512 00:29:08,340 --> 00:29:10,740 S1: in your case to carry a second card would just 513 00:29:10,740 --> 00:29:13,900 S1: be primarily those last two things I said. Number one 514 00:29:13,900 --> 00:29:17,380 S1: is it's a backup if you ever had one compromised. 515 00:29:17,380 --> 00:29:20,020 S1: And it seems like that happens more often than not. 516 00:29:20,020 --> 00:29:22,340 S1: So you wouldn't have to wait for the second card 517 00:29:22,340 --> 00:29:24,180 S1: to come in the mail to use it. You know, 518 00:29:24,180 --> 00:29:26,780 S1: if you were doing an online purchase or something. And 519 00:29:26,780 --> 00:29:29,780 S1: then secondly, the rewards optimization, if you had one that 520 00:29:29,780 --> 00:29:32,820 S1: was cash back, one that was, you know, had a 521 00:29:32,820 --> 00:29:37,300 S1: certain category or rewards bonuses for travel and you wanted to, 522 00:29:37,340 --> 00:29:39,770 S1: you know, pick and choose the card based on how 523 00:29:39,770 --> 00:29:43,170 S1: you can maximize those benefits. That's probably the only reason 524 00:29:43,170 --> 00:29:46,209 S1: I wouldn't do it for your credit score. Uh, for 525 00:29:46,210 --> 00:29:47,090 S1: those purposes. 526 00:29:47,130 --> 00:29:50,090 S7: Okay. Well, that's very good. Thank you for that help, Ralph. 527 00:29:50,290 --> 00:29:52,850 S1: Happy to do it. Call any time. Lord bless you. 528 00:29:53,130 --> 00:29:56,330 S1: 800 525 7000. We come back, we're going to head 529 00:29:56,330 --> 00:29:59,850 S1: out to, uh, El Paso. Michael is, uh, is going 530 00:29:59,850 --> 00:30:03,050 S1: to stop by. He's inherited some savings bonds and has 531 00:30:03,050 --> 00:30:06,330 S1: some questions about, uh, the taxation on those, how he 532 00:30:06,370 --> 00:30:09,650 S1: sells them and how he can gift some money to 533 00:30:09,650 --> 00:30:13,010 S1: a family member. Also, Nick in Ohio, he's wondering about 534 00:30:13,010 --> 00:30:15,690 S1: a home equity line of credit. And Bob Dole will 535 00:30:15,690 --> 00:30:18,970 S1: stop by. We'll get Bob's take on where this market 536 00:30:18,970 --> 00:30:22,410 S1: might be headed, depending upon what's going to transpire over 537 00:30:22,410 --> 00:30:26,690 S1: the next 24 hours between the US and Iran, as 538 00:30:26,690 --> 00:30:31,650 S1: those negotiations for a cease fire are ongoing. Uh, lot's 539 00:30:31,650 --> 00:30:33,810 S1: still ahead here in our final segment on Faith and 540 00:30:33,810 --> 00:30:44,840 S1: Finance Live. Don't go anywhere. We'll be right back. Hey, 541 00:30:44,840 --> 00:30:46,440 S1: great to have you with us today on Faith and 542 00:30:46,440 --> 00:30:48,920 S1: Finance Live. Hey, do you love the program? If so, 543 00:30:48,960 --> 00:30:51,959 S1: we're really grateful. We'd also invite you to become a 544 00:30:51,960 --> 00:30:54,640 S1: faith fi partner. Who are partners? Well, these are the 545 00:30:54,640 --> 00:30:57,360 S1: men and women, the supporters of this ministry that makes 546 00:30:57,360 --> 00:31:00,440 S1: this possible every day. And when you support us at 547 00:31:00,440 --> 00:31:03,680 S1: $35 a month or $400 a year, one way we 548 00:31:03,680 --> 00:31:06,640 S1: say thank you is by sending you a package in 549 00:31:06,640 --> 00:31:09,560 S1: the mail every quarter. That's right. You get something that 550 00:31:09,560 --> 00:31:12,960 S1: shows up at the in the mailbox, a ministry update 551 00:31:12,960 --> 00:31:17,040 S1: from me. We tell you stories about people's lives that 552 00:31:17,040 --> 00:31:19,720 S1: have been impacted by the ministry, where we're headed, what 553 00:31:19,760 --> 00:31:23,440 S1: God's doing, all the new things that are coming, plus 554 00:31:23,440 --> 00:31:25,920 S1: a letter from me each quarter. We also send you 555 00:31:25,960 --> 00:31:29,800 S1: for issues of our magazine Faithful Steward, which is beautiful, 556 00:31:29,800 --> 00:31:33,600 S1: full of really insightful biblical articles, articles on living as 557 00:31:33,600 --> 00:31:36,520 S1: a faithful steward. We also send you every new study 558 00:31:36,520 --> 00:31:40,630 S1: and devotional that we produce, including our new field guides. 559 00:31:40,630 --> 00:31:44,590 S1: We're launching a new product category this summer. Every field 560 00:31:44,590 --> 00:31:48,070 S1: guide responds to a single question. One of the most 561 00:31:48,070 --> 00:31:50,870 S1: common questions we get on the show. Our first one 562 00:31:50,870 --> 00:31:53,390 S1: is how much money is enough? How do you set 563 00:31:53,510 --> 00:31:57,230 S1: a lifestyle finish line biblically? That's our first one. It's 564 00:31:57,230 --> 00:31:58,750 S1: due out this summer. We'll be sure to get it 565 00:31:58,750 --> 00:32:01,270 S1: to you. You can learn more and support the ministry 566 00:32:01,270 --> 00:32:05,470 S1: by becoming a partner today. Just go to faith.com/give. That's 567 00:32:05,470 --> 00:32:08,910 S1: faith f I. Dot com slash give. Let's head back 568 00:32:08,910 --> 00:32:11,550 S1: to the phones El Paso. Michael thanks for your patience. 569 00:32:11,590 --> 00:32:12,150 S1: Go ahead. 570 00:32:12,710 --> 00:32:16,910 S10: Yes. I have a question in regards to savings bonds. Uh, 571 00:32:16,910 --> 00:32:20,670 S10: now my mother bought some savings bonds in the, uh, 572 00:32:20,910 --> 00:32:23,510 S10: about three savings bonds. And on the on the face 573 00:32:23,510 --> 00:32:27,190 S10: of the bonds that says 10,000, I'm assuming that that's the, 574 00:32:27,710 --> 00:32:30,870 S10: the amount that they're worth at the 18 year mark 575 00:32:30,870 --> 00:32:35,070 S10: at maturity. Mark. And my question is to whether or not, uh, 576 00:32:36,110 --> 00:32:40,100 S10: where can I go ahead and get those bonds cashed in? Uh, 577 00:32:40,300 --> 00:32:42,980 S10: I don't know. Uh, the bonds are in my name, 578 00:32:43,540 --> 00:32:45,780 S10: but my mother, I didn't know until she passed that 579 00:32:45,780 --> 00:32:48,460 S10: I got the bonds, and I was just wondering, uh, 580 00:32:48,500 --> 00:32:50,540 S10: where I would cash those in. I don't have a 581 00:32:50,540 --> 00:32:53,340 S10: computer or anything. And, uh, I know it used to 582 00:32:53,340 --> 00:32:55,540 S10: be in, uh, banks. I, I think they used to 583 00:32:55,540 --> 00:32:57,380 S10: go ahead and cash them in there, but I don't 584 00:32:57,380 --> 00:33:00,940 S10: know if they do that anymore. Uh, yeah. And, uh. 585 00:33:01,260 --> 00:33:03,780 S1: Unfortunately they don't. It was so easy when they did. 586 00:33:03,780 --> 00:33:05,380 S1: Are these paper bonds, Michael? 587 00:33:06,460 --> 00:33:10,620 S10: Uh, yes. Uh, the, the, uh, the e bonds. Evans. 588 00:33:10,940 --> 00:33:13,620 S1: Oh, they are e bonds. Okay. So they're electronic. 589 00:33:15,500 --> 00:33:17,820 S10: Well, I'm assuming they're electronic now. Yeah. 590 00:33:18,260 --> 00:33:20,420 S1: Yeah. So how did you receive them? What are you 591 00:33:20,420 --> 00:33:23,260 S1: referring to that has the information on them? 592 00:33:24,020 --> 00:33:27,500 S10: Okay. It has my name on it. My mother, my 593 00:33:27,540 --> 00:33:30,580 S10: mother bought three of them at 5000 each, but it's 594 00:33:30,580 --> 00:33:33,500 S10: just 10,000. So I'm assuming that the 18 year mark, 595 00:33:33,540 --> 00:33:37,200 S10: the maturity mark that's worth 10,000. Yeah. 596 00:33:37,200 --> 00:33:40,080 S1: So. So that's typically what you're talking about there. That's 597 00:33:40,080 --> 00:33:43,680 S1: the face value that was printed, which is the maturity value. 598 00:33:43,880 --> 00:33:46,240 S1: So if it's close to 30 years old, it's right 599 00:33:46,240 --> 00:33:49,120 S1: at maturity. And you know, the only way to know 600 00:33:49,120 --> 00:33:52,520 S1: the exact value is to go to Treasurydirect. Now, I 601 00:33:52,520 --> 00:33:54,840 S1: know you said you didn't have a computer. You know, 602 00:33:54,880 --> 00:33:57,200 S1: perhaps you could, um, you know, find a friend or 603 00:33:57,200 --> 00:33:59,720 S1: a family member that would allow you to use one. 604 00:34:00,040 --> 00:34:02,120 S1: Or even better yet, you know, do it with you. 605 00:34:02,160 --> 00:34:07,840 S1: Maybe a trusted, uh, family member, but Treasury Directgov is 606 00:34:07,840 --> 00:34:12,120 S1: the place to go. Um, and you know, these, uh, 607 00:34:12,120 --> 00:34:15,080 S1: that is going to be the government's website where you 608 00:34:15,080 --> 00:34:17,960 S1: redeem these, um, it would allow you to type in 609 00:34:18,000 --> 00:34:23,480 S1: the Cusip number for your particular bonds, find out exactly. Um, 610 00:34:23,480 --> 00:34:25,920 S1: you know how much you have. You could link it 611 00:34:25,920 --> 00:34:29,439 S1: up to a checking or a savings account, and then 612 00:34:29,440 --> 00:34:32,600 S1: you would be able to just transfer it right over. Um, 613 00:34:32,600 --> 00:34:36,069 S1: so that you could, you know, have it electronically available 614 00:34:36,070 --> 00:34:38,230 S1: to you. And that's going to be the way that 615 00:34:38,230 --> 00:34:40,710 S1: you you do this. And I realize, you know, you 616 00:34:40,710 --> 00:34:43,190 S1: may say, well, I'd rather just be able to walk 617 00:34:43,190 --> 00:34:46,910 S1: in somewhere. Unfortunately, banks just don't do that anymore. And 618 00:34:46,910 --> 00:34:51,390 S1: so they really require you to go to Treasury Direct. Um, 619 00:34:51,430 --> 00:34:54,830 S1: now in order to do this, you will have federal 620 00:34:54,830 --> 00:34:58,550 S1: income tax, no state or local. You'd pay the tax 621 00:34:58,550 --> 00:35:02,470 S1: on the interest earned, not the original value. So since 622 00:35:02,469 --> 00:35:06,270 S1: they were inherited, you'd owe the tax on all accumulated 623 00:35:06,270 --> 00:35:10,310 S1: interest unless the estate already reported it. But they likely 624 00:35:10,310 --> 00:35:14,270 S1: did not. Um, and so you would, you'd find out 625 00:35:14,270 --> 00:35:17,150 S1: all of those details though when you type in the 626 00:35:17,150 --> 00:35:21,950 S1: number of the bond@treasurydirect.gov. So I think that's your next 627 00:35:21,950 --> 00:35:24,790 S1: step here is to find out, you know, who can 628 00:35:24,790 --> 00:35:27,989 S1: assist you in, in getting logged onto that website and 629 00:35:27,989 --> 00:35:29,150 S1: getting these redeemed. 630 00:35:29,750 --> 00:35:32,670 S10: Yeah. I have a question on another question on gifting. 631 00:35:32,830 --> 00:35:35,700 S10: And I understand it was a $19,000 a year in 632 00:35:35,700 --> 00:35:38,100 S10: the tax year that you can give somebody a gift 633 00:35:38,100 --> 00:35:40,060 S10: and there would be no taxes for the giver or 634 00:35:40,100 --> 00:35:41,020 S10: the recipient. 635 00:35:41,500 --> 00:35:45,299 S1: That is correct. So it changes each year. Typically it 636 00:35:45,380 --> 00:35:49,820 S1: increases this year it's 19,000 per person, which means you 637 00:35:49,860 --> 00:35:53,700 S1: can give any individual and as many individuals as you want, 638 00:35:53,860 --> 00:35:59,580 S1: 19,000 for the year 2026, no tax, no IRS reporting. 639 00:35:59,780 --> 00:36:02,300 S1: And you can continue to do that every year, even 640 00:36:02,300 --> 00:36:06,100 S1: to the same person indefinitely, up to the limit for 641 00:36:06,100 --> 00:36:08,859 S1: that year. And you would find out in the late 642 00:36:08,860 --> 00:36:12,860 S1: fall each year what the next year's gift limit is. 643 00:36:13,060 --> 00:36:15,739 S10: Okay. I didn't know if it was a cumulative or not. 644 00:36:15,780 --> 00:36:18,219 S10: You know, anything over 19,000, then you would have to 645 00:36:18,219 --> 00:36:20,940 S10: report if you give somebody something in the next year. 646 00:36:21,140 --> 00:36:23,540 S10: But okay, that's it every year. No problem. 647 00:36:23,820 --> 00:36:26,859 S1: Well, you can do up to 19,000 without reporting it 648 00:36:26,860 --> 00:36:28,780 S1: to the IRS. And you can do that each year. 649 00:36:28,780 --> 00:36:32,300 S1: You are allowed to go over that. And anything above 650 00:36:32,300 --> 00:36:35,969 S1: the annual gift limit would then chip away at what's 651 00:36:35,969 --> 00:36:39,969 S1: called your lifetime exclusion, which to date sits north of 652 00:36:39,969 --> 00:36:43,049 S1: $13 million. So it's going to be a long time 653 00:36:43,050 --> 00:36:45,410 S1: before you get to that limit. But if you don't 654 00:36:45,410 --> 00:36:47,450 S1: want to fool with. If you don't want to fool 655 00:36:47,450 --> 00:36:49,770 S1: with telling the IRS about that, then just keep it 656 00:36:49,770 --> 00:36:51,410 S1: under the annual gift limit. 657 00:36:52,530 --> 00:36:54,130 S10: Okay. Well, I appreciate you. 658 00:36:54,730 --> 00:36:58,370 S1: All right. Thanks for your call today. Well, Bob Dole 659 00:36:58,370 --> 00:37:00,930 S1: is here. A lot going on in the markets, Bob. 660 00:37:00,930 --> 00:37:03,290 S1: I'm sure it's been a busy day. Are you surprised 661 00:37:03,290 --> 00:37:06,250 S1: that we ended up green on all of the the 662 00:37:06,250 --> 00:37:09,210 S1: major indexes just given what's at stake with these, uh, 663 00:37:09,250 --> 00:37:10,850 S1: the cease fire negotiation? 664 00:37:11,690 --> 00:37:15,810 S11: Yeah. Um, you know, green with a war backdrop is, uh, 665 00:37:15,810 --> 00:37:19,490 S11: always welcome and always, uh, head scratching, but that's exactly 666 00:37:19,489 --> 00:37:22,969 S11: what's going on. Uh, investors are saying, well, maybe we're 667 00:37:22,969 --> 00:37:26,890 S11: going to get some reprieve here and, uh, that there's a, 668 00:37:27,130 --> 00:37:29,330 S11: an end to this thing not too far down the 669 00:37:29,330 --> 00:37:32,690 S11: line or at least a slowdown. And that's what's cheering 670 00:37:32,760 --> 00:37:33,800 S11: Investors on. 671 00:37:33,840 --> 00:37:37,960 S1: Yeah. I haven't, uh, followed much today. I just haven't 672 00:37:37,960 --> 00:37:41,080 S1: had time. Um. Have you seen any headlines on what 673 00:37:41,080 --> 00:37:43,239 S1: is the president saying? And I know he had a 674 00:37:43,239 --> 00:37:45,000 S1: press conference today. What's the latest? 675 00:37:45,040 --> 00:37:47,879 S11: Yeah. Not a whole lot of change. I mean, he's, 676 00:37:47,880 --> 00:37:51,279 S11: he's he's rattling the sabers. Um, you know, if you 677 00:37:51,280 --> 00:37:53,920 S11: if you don't do this, we'll do that kind of thing. 678 00:37:54,080 --> 00:37:58,080 S11: And it's very punitive. Um, you know, and the, if 679 00:37:58,120 --> 00:38:00,520 S11: you saw over the weekend the bridge that was bombed 680 00:38:00,520 --> 00:38:03,600 S11: and taken out, it's that kind of thing. The infrastructure, 681 00:38:04,000 --> 00:38:08,600 S11: the electricity, um, we're just getting more serious in terms 682 00:38:08,600 --> 00:38:13,200 S11: of making Iran, um, kind of, uh, go to ashes. Uh, 683 00:38:13,320 --> 00:38:14,440 S11: so sad to see. 684 00:38:14,480 --> 00:38:18,520 S1: Yeah. Bob, uh, you had your quarterly investment commentary out 685 00:38:18,520 --> 00:38:21,200 S1: this week as you just kind of look back over 686 00:38:21,400 --> 00:38:24,319 S1: the start to this year, how would you summarize kind 687 00:38:24,320 --> 00:38:25,760 S1: of where we find ourselves now? 688 00:38:25,800 --> 00:38:29,520 S11: I would say surprisingly good. Now, I know people have 689 00:38:29,520 --> 00:38:31,800 S11: lost money in the stock market, but if you told 690 00:38:31,800 --> 00:38:34,710 S11: me on January 1st that oil was going to be 691 00:38:34,710 --> 00:38:37,350 S11: over $100 a barrel. There would be a war in 692 00:38:37,350 --> 00:38:41,149 S11: the Middle East. Um, et cetera, et cetera. I'd say, 693 00:38:41,190 --> 00:38:44,109 S11: oh my goodness. Given the valuation level, stocks would be 694 00:38:44,110 --> 00:38:48,189 S11: down more than they actually are. Um, which means that 695 00:38:48,190 --> 00:38:53,310 S11: the market is anticipating that this geopolitical event is not 696 00:38:53,310 --> 00:38:56,150 S11: going to have, uh, a long tail to it. And 697 00:38:56,150 --> 00:38:58,989 S11: so they're looking past that. Uh, I hope that is 698 00:38:58,989 --> 00:39:00,830 S11: the right way to look at it, but I think 699 00:39:00,830 --> 00:39:04,870 S11: stocks have behaved, uh, well under the circumstances. 700 00:39:05,150 --> 00:39:09,190 S1: Yeah. And you're pleased with the fundamentals undergirding our economy 701 00:39:09,190 --> 00:39:09,710 S1: right now. 702 00:39:10,150 --> 00:39:12,910 S11: Well, thank you for bringing that up. That's another reason 703 00:39:12,910 --> 00:39:16,069 S11: why stocks haven't gone down more. Uh, the economy of 704 00:39:16,070 --> 00:39:18,710 S11: the US and for that matter, much of the world 705 00:39:18,710 --> 00:39:21,629 S11: going into this war was in pretty good shape. There 706 00:39:21,630 --> 00:39:25,270 S11: were tailwinds. And, uh, the assumption again is if this 707 00:39:25,270 --> 00:39:28,589 S11: doesn't last a long time. In other words, if $100 708 00:39:28,590 --> 00:39:32,529 S11: oil doesn't do significant damage, uh, we can get through 709 00:39:32,530 --> 00:39:35,730 S11: and get back to the economy is okay. Job growth is. 710 00:39:35,969 --> 00:39:38,930 S11: We just got a number. Last Friday was better than expected. 711 00:39:39,090 --> 00:39:44,049 S11: So yes, underlying um economic growth remains reasonably robust, but 712 00:39:44,050 --> 00:39:46,649 S11: we have to keep pinching ourselves because we can't have 713 00:39:46,650 --> 00:39:50,450 S11: 100 plus dollars oil forever and expect the economy to 714 00:39:50,450 --> 00:39:51,049 S11: be really good. 715 00:39:51,090 --> 00:39:53,930 S1: Yeah. All right Bob, well, what's going to happen this week. 716 00:39:53,930 --> 00:39:56,890 S1: We'll look forward to chatting next week and see where 717 00:39:56,890 --> 00:39:58,890 S1: we find ourselves. Thanks for your time, sir. 718 00:39:59,090 --> 00:40:00,570 S11: Seatbelts on in the meantime. 719 00:40:00,810 --> 00:40:04,970 S1: Yes, sir. Absolutely. And shoulder harness. God bless you, my friend. 720 00:40:06,090 --> 00:40:09,930 S1: That's Bob Dahl. He's CEO and CIO at Crossmark Global Investments. 721 00:40:09,969 --> 00:40:12,450 S1: All right. Let's finish out the broadcast today in Ohio. Nick, 722 00:40:12,450 --> 00:40:13,850 S1: thanks for your patience. Go ahead. 723 00:40:14,570 --> 00:40:20,890 S12: Hey, Rob. Um, I'm considering a HELOC, uh, early next year, but, uh, 724 00:40:21,330 --> 00:40:24,009 S12: all the resources I've looked into, trying to find out 725 00:40:24,010 --> 00:40:27,410 S12: information about them are pretty much like, sign up and 726 00:40:27,410 --> 00:40:29,130 S12: we'll talk you through it. I'm like, I'm trying to 727 00:40:29,130 --> 00:40:32,359 S12: find out before I sign up. Yes. Yes. From what 728 00:40:32,360 --> 00:40:35,879 S12: I gather, I can take, like, up to half of 729 00:40:35,880 --> 00:40:41,520 S12: my equity, but there's multiple interest rates and timelines for payback. 730 00:40:41,520 --> 00:40:44,640 S12: And I was hoping you could clarify some stuff for me. 731 00:40:45,120 --> 00:40:47,440 S1: Yeah, I'd be happy to. You know, at the at 732 00:40:47,480 --> 00:40:50,080 S1: the end of the day, a home equity line of 733 00:40:50,080 --> 00:40:55,400 S1: credit is essentially a loan, um, where they give you 734 00:40:55,400 --> 00:40:59,080 S1: an approval on a maximum line based on your equity, 735 00:40:59,480 --> 00:41:03,600 S1: and then you borrow, repay and borrow again during what's 736 00:41:03,600 --> 00:41:08,160 S1: called the draw period, which is often ten years. Uh, 737 00:41:08,160 --> 00:41:11,720 S1: you only pay the interest on what you use. And, 738 00:41:11,719 --> 00:41:15,080 S1: and that's really, really where the, what the primary feature is, 739 00:41:15,120 --> 00:41:17,960 S1: is you get that approval based on the equity that 740 00:41:17,960 --> 00:41:23,120 S1: you have and your income and credit score. And many 741 00:41:23,120 --> 00:41:25,399 S1: people will get them even if they don't have an 742 00:41:25,400 --> 00:41:30,160 S1: intended purpose, just to know that that's available. Uh, often 743 00:41:30,270 --> 00:41:32,509 S1: they'll do it for maybe a home improvement project or 744 00:41:32,510 --> 00:41:36,510 S1: something like that. But remember, other than the closing costs, 745 00:41:36,510 --> 00:41:39,150 S1: which we'll talk about that in a second. Um, you know, 746 00:41:39,190 --> 00:41:41,950 S1: if you don't borrow any money, you're not paying any interest. 747 00:41:41,950 --> 00:41:43,670 S1: And so it can stay open as long as the 748 00:41:43,670 --> 00:41:46,750 S1: draw period is open. And then, you know, once the 749 00:41:46,750 --> 00:41:51,350 S1: draw period closes, it converts to an amortized loan for 750 00:41:51,350 --> 00:41:55,310 S1: whatever balance is outstanding, maybe a a 15 year amortization 751 00:41:55,310 --> 00:41:59,190 S1: or something like that. Uh, so they, they are very flexible. 752 00:41:59,190 --> 00:42:01,989 S1: Their variable rates in terms of the rate, you'll want 753 00:42:01,989 --> 00:42:05,950 S1: to try to find one that has prime plus zero, 754 00:42:06,510 --> 00:42:11,270 S1: no more than prime plus 1%. The average right now is, uh, 755 00:42:11,270 --> 00:42:15,469 S1: mid sixes up to just north of 7%. I'd also 756 00:42:15,469 --> 00:42:19,230 S1: look for one that has no closing costs or close 757 00:42:19,230 --> 00:42:23,110 S1: to it. Bank of America, Truist and Navy Federal Credit 758 00:42:23,110 --> 00:42:25,509 S1: Union are probably about the best right now. Stay on 759 00:42:25,510 --> 00:42:27,310 S1: the line. We'll talk a bit more off the air. 760 00:42:27,350 --> 00:42:29,710 S1: Faith and Finance Live is a partnership between Moody Radio 761 00:42:29,710 --> 00:42:30,430 S1: and Faith fi.