S1: It's often said that wisdom may create wealth, but wealth
S1: rarely creates wisdom. Hi, I'm Rob West. What's more valuable?
S1: Wisdom or wealth? Before you answer, consider that wealth is fleeting,
S1: but wisdom is never lost. John Cortinas joins us today
S1: to talk about why wisdom over wealth is always the
S1: right choice. And then it's on to your calls at
S1: 800 525 7000. That's 800 525 7000. This is faith
S1: and finance. Live biblical wisdom for your financial journey. Well,
S1: I've been looking forward to having John Cortinas back on
S1: the program. He's the director of partnership and growth at
S1: the MacLellan Foundation and the author of True Riches What
S1: Jesus Really Said About Money and Your Heart. John, it's
S1: great to have you back.
S2: Good to be with you, Rob.
S1: Thanks, John. Many listeners may not realize that you wrote
S1: a study for us last year on the book of
S1: Ecclesiastes titled Wisdom Over Wealth, which is available at faith.com/shop
S1: for both individuals, small groups, also churches. We've received such
S1: encouraging feedback from people who have been struck by Ecclesiastes
S1: lessons on wealth, wisdom, and what truly matters. So before
S1: we talk about the study itself, I'd love to know
S1: about the process. What did that look like for you
S1: as you walked through Ecclesiastes personally?
S2: Um, you know, it's a, it's a mysterious book. It's
S2: a meaningful book. There's a lot of wisdom in there.
S2: And so we've titled this study Wisdom Over Wealth 12
S2: lessons from Ecclesiastes on Money. And it has been a
S2: joy and transformative for me to get into that book.
S2: As you know, God's Word always has power.
S1: It sure does. And to your point, Ecclesiastes is one
S1: of those books we can easily overlook because at first
S1: glance it can feel difficult or even discouraging. But when
S1: we slow down and let the preacher speak, we discover
S1: a deeply hopeful message. Life is brief, wealth is limited. Achievement,
S1: pleasure and possessions can't bear the weight of our souls.
S1: But God alone can. And that's really the heart behind
S1: wisdom over wealth. 12 lessons from Ecclesiastes on Money. The
S1: study explores themes like contentment and work and generosity, even enjoyment,
S1: wisdom and the fear of the Lord. It reminds us
S1: that money is a gift to steward, not a treasure
S1: to worship. And we can receive God's provision with gratitude.
S1: We can enjoy it in its proper place and hold
S1: it with open hands, because our ultimate treasure is not
S1: under the sun. It is in the God who made
S1: us and sustains us and gives meaning to all we do.
S1: So in the study, you actually illustrate the importance of
S1: wisdom over wealth with a really powerful story. I'd love
S1: for you to unpack that for our listeners.
S2: Would love to do it. Yes. That story you just referenced,
S2: this was a real life experience or conversation I had,
S2: and it was with somebody who was a part of
S2: three siblings, and each of them had a substantial inheritance
S2: that they received. That was in today's dollars, about a
S2: million bucks. And so a lot of money at age 18. Okay. And, uh,
S2: it's amazing. The first one was kind of like a
S2: prodigal son story. So really sad. Um, they, they did
S2: not go down the right path and it was squandered
S2: and they ended up in a very poor position, uh,
S2: metaphorically and literally. Yeah. The second sibling, there was some mismanagement,
S2: but also a little bit more maybe good decision making
S2: as well. And they ended up in a house that
S2: at least they had, but the rest of the money
S2: kind of went away because expenses exceeded income. And so
S2: then here comes the third. And the third child in
S2: this family started having lunch with, uh, wise, godly leaders
S2: in their community and just asking, look, here's my story.
S2: Here's what happened to my siblings. I don't want it
S2: to happen to me. They actually hired a Christian financial advisor,
S2: and I was one of those lunches. And it was
S2: such a privilege to talk to this young person who
S2: was saying, look, I don't want what's happened to my
S2: older siblings to be my story as well. I want
S2: to honor God. I want to learn what investing looks like.
S2: And ultimately, there's a happy ending for this person because
S2: they finished a college degree, they learned about generosity, they
S2: learned about investing, and their life is one that is
S2: glorifying God today.
S1: And John, I couldn't agree more. I mean, what a
S1: picture of this idea that wisdom can generate wealth, but
S1: wealth rarely generates wisdom. This really underscores that, doesn't it?
S2: Yeah. If you look at this story, it's three people
S2: from the same family and they all got the same
S2: wealth input right as they entered adulthood. And there are
S2: three radically different outcomes. And I would argue that the
S2: difference was wisdom.
S1: That's exactly right. And we're going to explore this right
S1: around the corner. In fact, we'll dive into the book
S1: of Ecclesiastes, where we see this idea that wisdom and
S1: wealth are both good things, but only one of them
S1: can preserve your life. We're talking today with John Cortinas,
S1: our friend, frequent contributor, and the director of Partnership and
S1: growth at the MacLellan Foundation. Wisdom over wealth on Faith
S1: and finance. Today I'm Rob West and back with more
S1: right around the corner. Stay with us. Thanks for joining
S1: us today on Faith and Finance Live. What's more valuable,
S1: wisdom or wealth? We're talking about that today with our
S1: friend John Cortinas. He's the director of partnership and growth
S1: at the MacLellan Foundation and a frequent contributor here. And
S1: the study John wrote for us last year, wisdom Over
S1: Wealth 12 lessons from Ecclesiastes on money is the subject
S1: of our conversation today. By the way, you can pick
S1: up your copy today at faith fi.com/shop. Now, John, before
S1: the break, you told us this story. That's actually a
S1: true story. You were involved in this of three siblings
S1: that each inherited roughly $1 million in today's dollars. They
S1: had three different outcomes. One of them was tragic. Another
S1: didn't turn out the way we would have wanted. And
S1: yet the third was very God honoring. And you really
S1: suggested that the difference was wisdom. So take us into
S1: the book of Ecclesiastes to explore what you witnessed.
S2: Thanks, Rob. Yeah. So if we look at Ecclesiastes 711
S2: and 12, this is what it says. Wisdom, like an inheritance,
S2: is a good thing and benefits those who see the son.
S2: Wisdom is a shelter as money is a shelter. But
S2: the advantage of knowledge is this wisdom preserves those who
S2: have it.
S1: Yeah, a powerful truth. I know you've seen that play
S1: out time and time again now. We're not saying that
S1: wealth is bad, right?
S2: Of course not. Yeah. Scripture is clear that, uh, God
S2: has has given us these things for our enjoyment. As
S2: Paul says, wisdom and wealth are both good, as we
S2: just read in Ecclesiastes, but only one of them preserves
S2: our life. And so if we want to have life,
S2: wisdom has to be ahead of wealth. If you think
S2: about this, when you and I are born, when anybody
S2: is born, we're born without any wisdom, but we've got
S2: a crib to sleep in and there's people taking care
S2: of us. So we've already got some wealth, but we've
S2: got no wisdom yet, and we've got to flip that
S2: as soon as we can.
S1: Yeah, that's exactly right. And I love how our team
S1: worked with you to create visual reminders of the relationship
S1: between wisdom and wealth. The message is clear as wealth grows,
S1: wisdom must grow even faster. Otherwise money can quickly become
S1: dangerous for the soul. Isn't that right?
S2: That's right. You know, if you think about over our lifetimes,
S2: the traditional path wealth grows exponentially. There's compound interest, and
S2: so we can end up with a good deal of wealth.
S2: And yet, if we're not intentional to grow in our wisdom,
S2: the wealth is going to run ahead. And that creates risk.
S2: But the better way would be to prioritize wisdom. Because
S2: as we just read in Ecclesiastes seven, that will give
S2: us preservation. If wisdom is ahead of wealth, our life
S2: can be preserved.
S1: Yeah. And John, this can be pretty pronounced if we
S1: receive an inheritance or have a sudden wealth experience, it
S1: may not necessarily just play out over a lifetimes. Isn't
S1: that true?
S2: That's right. And that's where we can follow the example
S2: of the the young person whose story we just shared
S2: a bit of where, where he said, oh my goodness,
S2: I have all this money, I need some help. I
S2: need to talk to mature believers. I need a Christian
S2: financial advisor to help me navigate this and not blow
S2: things up.
S1: Yeah. Well, I love that you unpack this idea of
S1: obtaining wisdom because that's the natural next question. Then if
S1: it's wisdom over wealth, how do I obtain wisdom? What
S1: would you share with our audience?
S2: I love that, and the first question I would ask
S2: is what is wisdom? You know, we might think of
S2: a list of best practices or some good ideas or
S2: a checklist I can follow, but I would submit that
S2: wisdom is both a perspective and a person. In first
S2: Corinthians one, Paul refers to Jesus as Christ, the power
S2: of God, and the wisdom of God.
S1: MM. Yeah. That's right. And so, you know, as we
S1: think about those in our life, we obviously need to
S1: prioritize wisdom. But I know you've worked with a lot
S1: of matriarchs and patriarchs thinking about transferring wisdom to the
S1: next generation. You're thinking about that in your own family.
S1: What counsel would you give them today around this idea?
S2: You know, absolutely. I think there's so much biblical financial
S2: wisdom in Scripture. But again, I would say it's not
S2: a checklist, it's not a list of things that I
S2: need to do. The question that's first and foremost is
S2: do I know Christ? And anybody listening, I'd say, have
S2: you encountered wisdom himself? He's the power of God and
S2: the wisdom of God. We've each got the amazing opportunity
S2: to know Jesus and His wisdom through praying, through diligently
S2: studying His Word, and in doing so again, hearkening back
S2: to that Ecclesiastes passage. He can preserve our life, and
S2: he'll redeem our journey with money through his grace.
S1: Yeah. And when it comes to our kids, you know,
S1: clearly those who are listening today that are wrestling through
S1: this wealth transfer conversation, thinking about passing wisdom before wealth
S1: is really paramount. And if you haven't considered it, perhaps
S1: this is that time to stop and think about that
S1: before you execute your plans. How would you speak into
S1: that dilemma that some are facing right now?
S2: You know, this is such a huge question. The great
S2: wealth transfer, of course, is talked about in media, popular
S2: media all the time. Um, but man, as believers, we
S2: have such an opportunity to open up the conversation earlier.
S2: I would just encourage anybody out there thinking about this.
S2: I mean, we're trying to talk to our grade school
S2: children about this now. And so if we start the
S2: conversation about wealth and wisdom and faith and legacy from
S2: a young age, wherever you're at today, open up the
S2: conversational door. Uh, and that will give more time for
S2: things to play out. I'd say the way not to
S2: do it is, is make a will wait for you
S2: to die and hope everybody figures it out. Let's start
S2: the process today.
S1: Yeah, I think the key there is intentionality. Now, John,
S1: we mentioned earlier, this is just one lesson within the
S1: larger study you wrote for Faith VI last year, wisdom
S1: Over Wealth 12 lessons from Ecclesiastes on Money. So for
S1: our listeners, connect this topic to the bigger theme. You
S1: draw from Ecclesiastes and what God's Word teaches about money
S1: and wisdom and eternity.
S2: You know, spending so much time in Ecclesiastes to prepare this,
S2: there are two huge themes that jumped out at me
S2: studying all 12 chapters of that book. And the first
S2: one is not money. Actually, the first one is death.
S2: 11 out of the 12 chapters of Ecclesiastes mention death
S2: in one way or another, but I would I would
S2: argue that the author of Ecclesiastes and God is communicating
S2: to us through this book, not to make us sad
S2: as we think about death, but actually to recognize that
S2: life is short. And he's given us the breath in
S2: our lungs today. It's an opportunity to enjoy him, to
S2: glorify him, and to seize the moment for his glory. Uh,
S2: and that actually feeds into the financial wisdom of Ecclesiastes
S2: as well. And so realizing life is short, wanting to
S2: honor God and fear him and obey his commands with
S2: the time we're given on earth, and then trying to
S2: manage our money in accordance with that. And we spend
S2: these 12 lessons unpacking that in this study that we've
S2: put together.
S1: Mhm. Yeah. John, as we begin to tie a bow
S1: on today's message and returning to this idea of wisdom
S1: over wealth, what's the big idea that you'd want to
S1: leave with our listeners today?
S2: I would just point once again to Jesus. It's all
S2: about him. Um, and, uh, he is the source of wisdom.
S2: And so, um, I'm so thankful for what you guys
S2: are doing through this, through Faith VI, through, um, Kingdom
S2: Advisors and putting that message out there that when we
S2: connect our faith and finances, uh, it actually starts to
S2: shape our heart and make us more like Christ. These
S2: are not two areas of our life that should be separate. Uh,
S2: we should bring them together in the short number of
S2: days that we've got for the glory of God.
S1: Yeah, that's exactly right. And I'm grateful for your hard
S1: work on this study, and I'm encouraged by the feedback
S1: we've already received. I look forward to seeing the continued
S1: impact that it will have. John, as we close, what's
S1: your hope and prayer for anybody that picks up that study?
S2: I would say recognize that your life is a gift.
S2: You've been given a brief moment of life. You can
S2: spend it in bitterness, you can spend it complaining, or
S2: you can recognize that God has given you a gift
S2: even in the challenges you face. So seek after him
S2: and make every day count for the glory of God.
S1: Yeah. That's right. Well, that's certainly our objective here on
S1: this program every day to help you see God as
S1: your ultimate treasure and money, a tool to accomplish his purposes. John,
S1: thanks for stopping by.
S2: Thanks so much, Rob. Great to be with you.
S1: That's John Cortinas, director of partnership and growth at the
S1: MacLellan Foundation. You can pick up your copy of Wisdom
S1: Over Wealth 12 lessons from Ecclesiastes on Money at faith.com/shop.
S1: That's faith.com/shop. Your questions are next. 800 525 7000. Stick around. Hey,
S1: thanks for joining us today on Faith and Finance Live.
S1: I'm Rob West. Boy, what a just overwhelming, uh, opportunity
S1: we've had to see you respond during these 48 hours
S1: of impact the last couple of days. Thank you for
S1: your generous gifts as you've come alongside us to support
S1: directly the incredible work of the Moody Global Campus, uh,
S1: Lord willing that we would see many more, uh, courses
S1: translated into the native tongue of pastors across the globe,
S1: moving into Kenya, moving into other parts of the world,
S1: meeting the need for these many people, groups that are
S1: asking for Bible training in their language, meeting the need for,
S1: for oral learners. Uh, you all are just incredible. And
S1: we are so grateful to so many of you who
S1: stepped in with a monthly or a one time gift.
S1: Just amazing to see what the body of Christ can
S1: do together. Well, today we're back to regular programming, which
S1: means we want to help you think about managing God's
S1: money God's way. I mean, that was on full display
S1: the last couple of days during this hour as you
S1: were giving. That's one way we honor the Lord as
S1: we recognize the grace that has been extended to us.
S1: And then as a natural overflow of that, we take
S1: what has been entrusted to us that does not belong
S1: to us. It belongs to God. But we return a
S1: portion of it into God's economy. We can do that
S1: through our our charitable giving. We can do that through
S1: our strategic investments. Investments are how we support business, which
S1: is God's design for wealth creation. You know, the economic
S1: system that we operate in starts with creator. God created
S1: us in his image to keep and cultivate, uh, to
S1: be a blessing, to take the latent potential of his
S1: creation and put it to work for the flourishing of others.
S1: And we do that each day in part as we
S1: manage God's money. And so we want to help you
S1: do that today. We recognize you have questions, so we
S1: want to come alongside you and help you answer those questions.
S1: But if you have something on your mind today, financially,
S1: call right now (800) 525-7000. That's 805 257000. You can call
S1: right now. In the news today. Inheriting a family home
S1: can bring both financial opportunity and difficult decisions. When siblings
S1: or other relatives inherit property together, they often have to
S1: decide whether to sell, rent or keep the home while
S1: continuing to cover property taxes, insurance, maintenance and repairs. These
S1: decisions are becoming more common as trillions of dollars in
S1: wealth are expected to pass between generations in the coming decades.
S1: Rising home values have made real estate and especially significant
S1: part of many inheritances. Experts say disagreements can arise when
S1: heirs have different financial needs or emotional attachments to a property.
S1: Delaying a decision can also become costly because expenses continue
S1: even while the family considers its options. Tax considerations matter
S1: as well. Inherited property receives a new cost basis based
S1: on its fair market value at the owner's death, making
S1: a timely appraisal really important. Financial and estate planning professionals
S1: recommend discussing plans for family property well in advance, clear instructions,
S1: appropriate wills or trusts, perhaps a transfer on death deed
S1: if your state allows it, and a defined timeline for
S1: making decisions can help reduce conflict control costs and protect
S1: the property's value. Listen, I know this can get complicated,
S1: but hopefully, as you think through this, have a plan
S1: in advance. Communicate clearly. You can make sure you're operating
S1: as a steward in an orderly way, including the passing
S1: of the family home, what is often the largest asset.
S1: All right, let's dive into your questions today. 800 525
S1: 7000 is the number to call. We're going to begin
S1: in Chicago. And Mike, you'll be first up. Go ahead sir.
S3: Thank you for taking my call. Um, so this year
S3: I turned 73. And of course, I have to meet
S3: my required minimum distributions out of my IRA accounts. And
S3: part of that will be charitable giving. And and then
S3: of course, every month I also give charitably with my
S3: monthly income. So what I'm wondering, my question is, is
S3: there any advantage to giving a larger percentage of their
S3: charitable giving to my IRA distributions? If at the end
S3: of the year, the total amount of my charitable contributions
S3: are the same? I hope my question makes sense to you.
S1: But yeah, absolutely it does. And I think yes, for
S1: many people, there is a tax advantage to making more
S1: of their charitable giving directly from the IRA through what
S1: you have probably become familiar with is the qualified charitable distribution.
S1: And here's why the QCD satisfies that required minimum distribution
S1: that you now have at age 73, and it's excluded
S1: from your taxable income rather than included in income and
S1: then offset by a charitable deduction. Um, so what you're
S1: doing is you're keeping your adjusted gross income lower, which
S1: can have additional benefits, uh, you know, that can reduce
S1: or avoid what's called Irma. Um, which is the additional
S1: premium you could have on your Medicare Part B and
S1: part D, two years after your income goes up. So
S1: assuming your income was going to go up your taxable income,
S1: you know, when you turn 73, well, two years later,
S1: you could have higher premiums to the tune of hundreds
S1: of dollars a month for Medicare. Well, you avoid that
S1: by keeping your adjusted gross income lower and doing more
S1: of this through, uh, you know, your QCD, which means
S1: none of your potentially RMD is added to your taxable
S1: income as is a real benefit. It reduces the amount
S1: of Social Security benefits that are subject to tax. Um,
S1: it also can lower your state income taxes in some cases. So,
S1: you know, I like this idea, especially if you don't
S1: need the money from the R&D. And a lot of
S1: people are in that position where they're saying, listen, if
S1: it wasn't for the required minimum, I'd just leave it
S1: right there. My income is covered elsewhere. Well, if that's
S1: the case, why not do your charitable giving out of
S1: the IRA? Remember, it went in and you got a deduction.
S1: Normally it comes out as income that's taxable. The only
S1: way to get it out is through that qualified charitable distribution.
S1: So I'd keep your after tax money right there in
S1: your checking and savings and do as much through the
S1: IRA as possible. But does that make sense though?
S3: It does. I think I just don't understand how that
S3: changes my overall income at the end of the year,
S3: my overall taxable income when I. Isn't real clear how
S3: it changes my overall taxable income at the end.
S1: Okay. Yeah, let me address that because that's an important distinction.
S1: I've got to take a break here, Mike, but if
S1: you don't mind holding and if you can't, you can
S1: hang up and listen. I'll talk about the overall tax
S1: picture and how you think about that in light of
S1: the qualified charitable distribution. This is faith and finance live. Mary.
S1: Roger coming your way as well right after the break.
S1: 800 525 7000. Call right now. We'll be right back.
S1: Great to have you with us today on Faith and
S1: Finance Live. I'm Rob West taking your calls and questions
S1: at 800 525 7000. Uh, before the break, we were
S1: talking to Mike in Chicago. He's turning 73, which means
S1: he's now going to have a required minimum distribution based
S1: on his age and his account balance. That's going to
S1: run him about 21,000 that the IRS says he has
S1: to take out for that first year. He and his
S1: wife two typically substantially more than that as charitable giving
S1: to ministry, which they do from after tax dollars. So
S1: normally they'd write a check from checking or savings and
S1: just make that gift direct. And he's wondering what is
S1: the overall benefit from the tax picture to doing the
S1: full 21,000 from my IRA to cover the required minimum
S1: and then do the balance out of checking or savings? Um,
S1: you know, how does that help me at all? Um,
S1: and essentially, you know, without the QCD, you take the
S1: full 21,000 required minimum into taxable income. So let's say
S1: you give 40,000 from savings. The tax return now includes
S1: 21 grand of IRA income. You may get a charitable
S1: deduction only if you itemize. You probably do since you're
S1: giving a Is substantial, but your AGI is $21,000 higher
S1: with the QCD. You send the entire 21,000 of RMD
S1: directly to charity. You give only the remaining amount. In
S1: my example, if you're going to give 4000 total, you
S1: give the remaining 19 from savings. The total charitable giving
S1: still 40. But that 21000 never appears in your taxable income.
S1: So what changed? Well, the charity still received the total.
S1: The 40 you used 21000 less from savings because the
S1: IRA funded that portion. And the tax benefit is that
S1: the 21000 never became taxable income. You might say, but
S1: don't I lose the charitable deduction? Well, maybe. But that's
S1: often not the problem. Uh, and even if you itemize,
S1: you give up a charitable deduction on 21,000. But in
S1: exchange for that, you don't ever recognize it as income.
S1: And remember, that deduction is only on a portion of it,
S1: never on the whole thing. So the real advantage of
S1: the QCD is keeping your adjusted gross income lower, to
S1: not pay the tax on any portion of it, which
S1: you would otherwise have to do. Avoid the Irma. Avoid
S1: the additional taxation of Social Security benefits. Does that is
S1: that clear though, Mike?
S3: Yeah it is. I'm going to think about it a
S3: little bit. I'm going to listen to your explanation again.
S3: I do appreciate it. Yeah. I do appreciate uh, uh, yeah,
S3: it's just, uh, so at the end of the year, I'll,
S3: I'll do my income tax as basically as though I
S3: didn't even receive a required minimum distribution, basically.
S1: Exactly.
S3: Yeah, yeah, yeah. But then I'll have, but, but then
S3: I'll have less charitable giving than I normally have. So
S3: I'll have no uh.
S1: You really wouldn't because here's the reality. you could still
S1: give the same amount. It's just that, you know, let's pick.
S1: So in my example, we were given 40. Maybe it's
S1: more than that. But let's say you were planning to
S1: give 40,000 to charity. Normally you'd do that out of
S1: savings or checking with after tax dollars. I'm just saying
S1: if your required minimums 21 and you don't need that
S1: money for to live on, let's give. 21 of the
S1: 40 through the qualified charitable distribution. And the benefit is
S1: we never recognize that as income, meaning we don't have
S1: to pay tax on it. And then let's make up
S1: the difference. In my example, an additional 19,000, and you
S1: write that check from checking instead of the 40. And
S1: so the ministry still gets 40. They're just getting it
S1: in two checks, one check from the IRA, one check
S1: from you. And your real benefit is you satisfied the
S1: IRS requirement of the required minimum, but you didn't add
S1: a dime to your taxable income, which has multiple benefits.
S3: Okay. You said even had Benefits in coming years as
S3: far as my Social Security, Medicare premiums.
S1: Yeah. And your Medicare taxation. Exactly.
S3: Okay. Okay. Well, thank you very much. I appreciate your
S3: I appreciate your answer. It's a complicated answer, but it is.
S1: No, I totally get it. And a lot of people
S1: look at it and say, wait a minute, don't I
S1: get a deduction on that, that charitable contribution from the IRA? No,
S1: but you get something even better. It's just never counted
S1: as income. It wasn't counted as income. When you put
S1: it in, you got a deduction and it's not going
S1: to count as income coming out, which means you just
S1: got all that tax free growth. Um, and you know,
S1: you got a deduction in the very beginning. So it's
S1: a real win win. But it takes a little bit
S1: of mental gymnastics to get there. Hey God bless you Mike.
S1: We appreciate you being on the program today. Let's go
S1: to Michigan. Similar question from Susan. Go ahead.
S4: Oh yes. I hope I can articulate this adequately, but
S4: here's my question. Okay. I learned last year that if
S4: I gave my minimum distribution directly to charity, then they
S4: get the whole thing. And I really like that. But, um,
S4: here's what I was wondering. Can I give that, um,
S4: minimum distribution, like right now in the middle of the
S4: year because like I'm giving, uh, churches and things like
S4: that something every month, but I would rather just give
S4: like a big fat thumb.
S3: Yeah.
S4: Uh, what can I do that.
S1: You sure can. Yeah. You can make qualified charitable distributions
S1: at any time during the year, so you don't have
S1: to wait until the end of the year. Uh, and
S1: you also don't have to spread them out. So essentially,
S1: any time during the calendar year, you can make one
S1: QCD or several Qcds throughout the year. The only requirement
S1: is that you have to have completed at least your
S1: required minimum by December 31st, so to count for that
S1: tax year and toward that year's RMD, the funds have
S1: to leave the IRA and be received by the charity
S1: by year end. But if you want to do that
S1: starting in January and do it every month and get
S1: it done by December 31st, great. If you want to
S1: wait and do it, you know, the last couple of
S1: weeks of December, don't cut it too close. But as
S1: long as that money has been received by the charity
S1: by year end, it's going to count toward that year's, uh,
S1: required minimum. But they don't really care how many checks
S1: you write that in and over what period of time
S1: during that calendar year.
S4: Okay. And, um, I guess I don't know exactly what
S4: my actual minimum distribution will be, but I can kind
S4: of guess what it was. I know what it was
S4: last year. So just kind of do it that way.
S1: It's going to be a little higher. Yeah. Normally what
S1: happens is your IRA custodian, the company that sends you
S1: your statement like Fidelity or Schwab or Vanguard, they typically count.
S1: Calculate your R&D each year and make it available online
S1: or on your annual statement. So you're going to want
S1: to look at your, uh, you know, if you want
S1: to do it yourself, you could look at your year
S1: end account balance. So your December 31st account balance from
S1: the previous year, and then you would look at your
S1: IRS life expectancy table from the uniform lifetime table@irs.gov. And
S1: basically it's the prior year balance divided by the life
S1: expectancy factor. Um, but again, I would look to your
S1: IRA custodian because they should provide that number for you.
S4: Okay. All right. Thank you so much.
S1: Okay. Hey, listen, I love this conversation, folks. And by
S1: the way, you know, we've been talking about the Moody
S1: Global campus. We've been talking about translating these incredible Moody
S1: Bible Institute courses into the native tongue of people groups
S1: all over the world. If you want to support that,
S1: one of the great ways to do that is through
S1: a qualified charitable distribution. It comes right out of your IRA,
S1: goes to Moody Bible Institute to fund the training of
S1: the next generation of pastors all over the globe. Just
S1: go to Moody stewardship.org to learn more. A wonderful opportunity.
S1: The team would be delighted to talk you through it again.
S1: That website, Moody stewardship.org, and a qualified charitable distribution is
S1: a great way to give. Never recognize any taxable income
S1: and get more into God's kingdom. This is faith and
S1: finance live. I'm Rob West. We're taking your questions right
S1: after this at 800 525 7000. Great to have you
S1: with us today on Faith and Finance Live. I'm Rob West. Well,
S1: here in our final segment today, Jerry Boyer is here.
S1: Jerry Jerry joins us each Friday. And we talk markets.
S1: We talk corporate engagement. Today Jerry the market up slightly.
S1: But S&P 500 another record uh strongest week since April.
S1: I read earlier today. And that's just kind of been
S1: the order of the day. And and I know you
S1: and I were talking this morning and it sounds like
S1: perhaps this is a reaction to what we used to
S1: see move the markets, which was all about the fed. Right?
S5: Yeah. It looks that way to me. Uh, why does
S5: it look that way to me? Because, um, when you
S5: have bad economic news, especially in regards to employment markets,
S5: the fed tends to be dominated by a Keynesian economic framework,
S5: which says that, you know, the way to get unemployment
S5: down is to create new money, pump it into the
S5: system to stimulate things. Right. Uh, so if we have
S5: a situation where employment is not doing well and today's
S5: jobs report was pretty bad, well, then maybe the Fed's
S5: going to be easier. It's not going to tighten the
S5: money supply like everyone's been expecting. um, or maybe probably
S5: not tighten it as much. So that's the theory. So
S5: what does the data say? Well, if you look at
S5: the fed funds futures market is basically where people can
S5: kind of quote unquote bet on what the interest rate
S5: will be by the end of the year. It looks
S5: like less hiking, less tightening of the money supply. There's that, uh,
S5: in addition, um, the Dow, as opposed to the Nasdaq,
S5: Dow is kind of like regular stocks. Uh, Nasdaq is
S5: tech stocks a little bit more speculative. That tends to
S5: move more when there's easy money. So today the Dow
S5: is up a third of a percent. But the Nasdaq
S5: is up one and a third percent. Right. So that
S5: indicates that it's the easy money speculative part of the
S5: market that's moving. The other thing is gold's up, which
S5: suggests that the Fed's maybe not going to tighten or
S5: not tighten as much. And the dollar is down. So
S5: it all kind of amounts to the same thing. Easier money. Why?
S5: Because markets are saying, hey, the central bank, they don't
S5: follow classical economics. For the most part, they follow Keynesian economics,
S5: and they're not going to raise rates if the labor
S5: market is is is weak. Now, I don't think that's
S5: the way they should think about it. I think the
S5: fed should tighten the money supply when there's inflation and
S5: loosen the money supply when there's deflation. In other words,
S5: it pretty much should have one mandate, one job, protect
S5: the value of the currency. But for a long time,
S5: it really thinks it has two jobs. One is to
S5: fight inflation by slowing the economy down, and the other
S5: is to fight slowing down the economy by creating inflation.
S5: And you can never win that. You just go back
S5: and forth between these two conflicting mandates, which is basically
S5: the history of, um, you know, the last 100 years
S5: going back to the Great Depression of fed policy.
S1: Yeah. And they're actually making their job harder with the
S1: second part of that mandate, right?
S5: Yes, exactly. Uh, because if they, if they stimulate the
S5: economy with easy money, well, then they're going to get inflation.
S5: You know, what we're seeing is inflation doesn't seem to
S5: have been beaten. right. So the fed ought to be
S5: fighting inflation. That should be its one focus. As to
S5: the jobs market, well, the jobs market is driven by
S5: some regulatory problems and trade problems. We do not have
S5: a lot of we don't have much of a manufacturing renaissance.
S5: I understand we've seen press releases where the president is
S5: saying $1 trillion, probably the biggest ever. No one's ever
S5: seen numbers this big before of foreign investment. That's fine.
S5: But when we actually count the people getting manufacturing jobs,
S5: it's not that high. And the reason it's not that
S5: high is people are not going to do a lot
S5: of hiring or building factories, even in a situation where
S5: they don't know what the terms of trade are going
S5: to be. They don't know whether we're in a trade
S5: war or not, practically from hour to hour. One bright
S5: spot we saw in the jobs report today was construction,
S5: and that's almost certainly due to the AI build out.
S5: Now I know that's a fight right now. We got
S5: a culture war over AI like we do over every
S5: other thing other. Um. But all I'm saying is pretty
S5: much the only thing really rolling in this economy right now.
S5: It's not manufacturing, it's not services so much and it's
S5: not spending because spending is not what really rolls the economy.
S5: It's the result of productivity, not the cause. It doesn't
S5: cause spending doesn't cause um, prosperity. Spending is the result
S5: of prosperity. The thing that's really moving right now is AI.
S5: There's a huge amount of capital expenditure. And like David
S5: and I talked about at the conference call, um, the
S5: last one, um, almost all new capital expenditures on AI. Um,
S5: people say, well, that's a bubble. Well, yeah, well, if
S5: you're going to spend it on something, and if you're
S5: not going to build regular factories because you don't know
S5: whether there's a trade war, because factories depend on imports
S5: of commodities and exports of finished goods, you got to
S5: spend it somewhere. You got to invest it somewhere. So
S5: that's causing money to flow into, say, data center build outs.
S5: And I'm all I'm all for it. I'm in western Pennsylvania.
S5: We're seeing job growth here, and I like it. But really,
S5: I would also like factories. I would like the market
S5: to decide where the money goes. And what's pretty clear
S5: is the administration favors AI. And although it says it
S5: favors manufacturing, it's, um, uncertainty and instability in and around
S5: trade patterns really creates an anti manufacturing environment, even if
S5: they intend to create a manufacturing environment.
S1: Jerry we've been touting the great, uh, results from the
S1: earnings as of late. Most of this year. It's been
S1: stronger than expected. Uh, you know, you just said most
S1: of the AI boom right now is on the CapEx side.
S1: So that means, you know, it's what's to come in
S1: the future largely, do you think the productivity enhancements are
S1: in part why the earnings have been so good? Or
S1: is that really something that is more forward looking? And
S1: we've yet to realize that.
S5: I think about half and half. There's clearly productivity gains.
S5: We're not seeing them in the traditional productivity numbers, but
S5: it might be hard to analyze this. I remember was
S5: a Nobel Prize winning economist, New York Times guy. I
S5: can't remember his name now, said I see productivity numbers
S5: every place from the internet, every place, but in the
S5: productivity numbers. Right. Well, the internet turned out to make
S5: us productive. Right. A lot of people listening to you
S5: right now aren't on. Some weren't a lot on terrestrial radio,
S5: but people are also listening on podcasts. Right. And it
S5: did make us more productive. And AI is clearly making
S5: us more productive. It's a little hard to measure that,
S5: but it seems real. But I will say, when companies
S5: come out and say, hey, we're cutting jobs because of AI,
S5: I think they're mostly saying we're not going to hire
S5: as many people in the future because of AI. I'm
S5: not saying a lot of active cutting. So I think
S5: most of the productivity productivity gains from AI are in
S5: the future. And that's going to vary from business to business.
S5: But remember, we've been talking about this for a couple
S5: of years now. Some of that comes at the expense
S5: of somebody else. So if AI is creating new software,
S5: you know that companies are like building software internally, then
S5: that means they're not going out to Accenture to build
S5: the software for them. Right, right, right. So some of
S5: it cannibalizes other parts of it. It's not all gain.
S5: I'll take it. But there are some trade offs here.
S1: Yeah. Yeah, that makes sense. All right, Jerry, let's turn
S1: the corner here. As you gear up for the next
S1: engagement season, what are some of the big themes your
S1: team is preparing to engage on?
S5: Well AI is certainly going to be part of it.
S5: I actually really like the AI productivity gains, but I
S5: don't like the AI productivity gains in creating indecent content
S5: involving children. That doesn't actually seem like productivity to me. Um,
S5: and so that's something we've engaged with in the past
S5: and plan to engage with in this upcoming season that, hey,
S5: I'm all for data centers. They're helping us do computer programs,
S5: helping us organize our spreadsheets and reading X-rays for us, etc., etc.
S5: but I don't want them creating, you know, creepy pictures
S5: for creepy people to download and make evil plans against
S5: their neighbors. And that's not just evil. It's also stupid
S5: because the backlash, the regulatory and the litigation, and even
S5: the criminal law backlash against that is going to be extreme. Uh,
S5: and I think AI needs to realize it's hanging on
S5: a thin thread right now in terms of the people
S5: being willing to accept it. Um, and if it's creating content,
S5: which is morally abhorrent and legally very risky, then that
S5: just might really affect their ability to build out the
S5: good parts of AI. So we're going to engage on
S5: that a lot. We're engaging a lot on companies partnered
S5: with the Southern Poverty Law Center, uh, which has used
S5: hate group lists in ways that don't really have to
S5: do with actual hate groups anymore. It's just Christians. You know,
S5: Christians who have standard Christian views are, are, you know,
S5: are called hate groups. So also discrimination against churches, uh,
S5: in employee gift matching. We're going to talk about that
S5: a lot. Discrimination against Christian employee resource groups. That's something
S5: we're we're talking about. We're also going to talk about,
S5: you know, we've talked about the war on energy in
S5: the past. Some green activists have gone after energy companies.
S5: Now they're going after food companies. So the sustainability there
S5: are people out there who don't think there ought to
S5: be 10 billion humans. They think we're at eight. They
S5: think maybe there should be two or 3 or 4,
S5: and they're planning for a future with a lot less
S5: food production. And they're putting pressure on companies to, you know,
S5: go all plant based and no, uh, you know, no
S5: antibiotics and just a whole lot of things that make
S5: it tougher for farmers to actually produce food for us
S5: because they think that's sustainable. We don't think that's sustainable.
S5: We like more people. People come out of the womb,
S5: they're hungry from the very beginning, and they're going to
S5: be hungry for their whole lives, and we don't think
S5: we ought to be. We don't think that companies ought
S5: to be micromanaging how farmers do their thing. So that's
S5: going to be an area we're going to be engaging
S5: a lot as well. Uh, so, and we've already we've
S5: got victories already in the season just started. Microsoft just
S5: told us, hey, our employee match program, our gift match
S5: program is now open to everybody. Anyone who has a
S5: 501 C three so they can give to you, they
S5: can give to Moody's. Right? Um, they can give to
S5: their church, they can give to their synagogue. And it
S5: used to be that they had a whole bunch of screens.
S5: It's one of the biggest companies in the world that
S5: just changed that. So that's like, that's two weeks ago.
S5: We're just starting. Uh, so that's good. You know, so
S5: there's a lot going on right now. Um, with these companies.
S5: Last year was incredibly productive. This year so far is
S5: looking to be even more productive in getting companies just
S5: back to focused on your business. Stay out of the
S5: culture war, don't discriminate. We're not saying go out there
S5: and give all your money to, you know, to ministries,
S5: but don't blacklist them. That's crazy. Yeah. Um, just be fair. Um,
S5: and turns out a lot of companies are saying, all right. Yeah,
S5: I think we just want to be fair and they're
S5: responding accordingly.
S1: Perhaps, Jerry, this is the most unknown, understated driver of
S1: the future of our culture that the average Christian doesn't
S1: even know about. It's the work being done right now
S1: in corporate engagement. It's it's a big deal, isn't it?
S5: It is. It's a huge deal. And understated is part
S5: of the cost of doing it. If you take too
S5: many victory marches, they don't want the companies don't want
S5: to participate, don't want to cooperate.
S1: Yeah, that makes sense. Hey, Jerry. Have a great weekend, sir.
S1: We'll talk to you next week.
S5: Same to you. God bless.
S1: All right. That's Jerry Bowyer. He's our resident economist. Joins
S1: us each Friday on this segment. And I apologize. There's
S1: a few questions we didn't get to today. Let's see
S1: if we can get you scheduled to be on next week.
S1: Big thanks to my team today, the amazing tailor, Tara,
S1: Josh and Dan faith in finance lives, a partnership between
S1: Moody Radio and Faith. I have a wonderful weekend and
S1: then come back and join us next week. We'll see
S1: you then. Bye bye.