WEBVTT - Are You Loving Your Kids into Debt? 0:00:04.280 --> 0:00:07.280 The following programme was pre-recorded so our phone lines are 0:00:07.280 --> 0:00:08.119 not open. 0:00:08.320 --> 0:00:10.559 We all want the best for our kids, but knowing 0:00:10.600 --> 0:00:14.840 what's truly best isn't always easy. Hi, I'm Rob West. 0:00:14.880 --> 0:00:17.720 You've probably heard it or said it yourself. I just 0:00:17.720 --> 0:00:21.240 want my kids to have what I didn't. It sounds noble, 0:00:21.239 --> 0:00:24.680 but it can sometimes lead to financial trouble. Today I'll 0:00:24.680 --> 0:00:27.680 talk with doctor Art Rayner about how that mindset can 0:00:27.680 --> 0:00:30.639 push parents into debt. And we have some great calls 0:00:30.640 --> 0:00:33.480 lined up. But we won't be taking your calls today 0:00:33.479 --> 0:00:37.920 because we're pre-recorded. This is faith and finance. Live. Biblical 0:00:37.920 --> 0:00:44.800 wisdom for your financial decisions. Well, we're delighted to have 0:00:44.800 --> 0:00:47.320 our old friend Art Rayner with us today. He's the 0:00:47.320 --> 0:00:51.080 director of the Institute for Christian Financial Health, the organization 0:00:51.080 --> 0:00:56.400 that certifies Christian financial counselors, or CERT CFCs. Art, it's 0:00:56.400 --> 0:00:57.680 great to have you back with us. 0:00:57.720 --> 0:00:59.750 It's always an honor. Thank you for having me. 0:01:00.150 --> 0:01:02.510 There are a lot of folks, as you know, struggle 0:01:02.510 --> 0:01:05.750 with wanting to give their kids the best chance in 0:01:05.750 --> 0:01:09.190 life and yet not break the bank while doing it. 0:01:09.310 --> 0:01:12.550 You have an article on faith. Com titled six Things 0:01:12.550 --> 0:01:16.070 that Can Lead Loving Parents into Debt, and I want 0:01:16.069 --> 0:01:18.390 to get right into them. So what's the first one? 0:01:18.910 --> 0:01:22.630 Sounds good. The first is keeping up with the Joneses, 0:01:22.630 --> 0:01:26.110 trying to maintain the lifestyle of those around you. Your 0:01:26.110 --> 0:01:30.350 neighbor or coworker dresses their children in a high end clothing, 0:01:30.590 --> 0:01:32.229 and so you want to do the same. Or your 0:01:32.230 --> 0:01:35.110 neighbor sends their children to a private school, so you 0:01:35.110 --> 0:01:37.670 decide to follow suit, even though you can't really afford 0:01:37.670 --> 0:01:41.830 the cost. The Joneses are a frustrating crew to chase 0:01:41.830 --> 0:01:44.910 because they're always shifting the standard, right? As soon as 0:01:44.910 --> 0:01:47.550 you feel that you have arrived, they move it slightly 0:01:47.550 --> 0:01:50.310 out of reach again. So we need to be careful here. 0:01:50.590 --> 0:01:53.030 There will always be other parents who spend more on 0:01:53.030 --> 0:01:56.830 their children, but they may be using debt to finance it. 0:01:56.830 --> 0:01:59.220 You could be chasing a facade. 0:01:59.660 --> 0:02:02.780 All right, so don't get trapped into debt by keeping 0:02:02.780 --> 0:02:05.260 up with the Joneses. I love it, number two. 0:02:06.020 --> 0:02:09.580 It's one you might not think of spending time on 0:02:09.580 --> 0:02:13.980 social media. The images that you see on Facebook, Instagram, Twitter, TikTok, 0:02:13.980 --> 0:02:17.700 whatever are simply the filtered versions of those that you follow. 0:02:17.740 --> 0:02:22.540 The constant barrage of great vacations, child accolades, and perfect 0:02:22.540 --> 0:02:25.019 family moments can make you feel like you're a bad 0:02:25.020 --> 0:02:29.579 parent at times. You can easily create unrealistic expectations and 0:02:29.580 --> 0:02:32.739 try to buy your way to feeling better about yourself. 0:02:33.100 --> 0:02:36.380 Yeah, the best version of someone's life on social media 0:02:36.380 --> 0:02:40.419 has certainly added to the comparison trap. All right, that's two. 0:02:40.460 --> 0:02:41.460 What's number three? 0:02:41.980 --> 0:02:46.060 Yeah. So this one is easy to fall into, thinking 0:02:46.060 --> 0:02:50.140 your kids won't succeed in life if they don't have 0:02:50.139 --> 0:02:53.900 it all. You know, extracurricular activities have entered a whole 0:02:54.060 --> 0:02:58.980 new realm. Travel leagues, academic and athletic camps and private 0:02:59.020 --> 0:03:03.420 tutoring have become just a commonplace. Now, unfortunately, there's a 0:03:03.419 --> 0:03:06.540 cost to all of these activities and experiences eating up 0:03:06.580 --> 0:03:11.220 time and money. Now our extracurricular activities. Good. Yeah, absolutely. 0:03:11.380 --> 0:03:14.419 But are they worth going into debt? Absolutely not. 0:03:14.620 --> 0:03:17.220 Oh, boy. I know this one all too well. A dancer, 0:03:17.260 --> 0:03:20.380 a soccer player, two basketball players. We've certainly been down 0:03:20.380 --> 0:03:23.620 that road. You have to be careful. All right, what's 0:03:23.660 --> 0:03:24.580 number four? Art. 0:03:24.980 --> 0:03:29.260 And that is caring more about your child's future career 0:03:29.620 --> 0:03:33.660 than their future character. Often the focus of our parenting 0:03:33.660 --> 0:03:36.620 is centered on getting our child into a good school, 0:03:36.620 --> 0:03:39.220 or setting them up to have a good career. Those 0:03:39.220 --> 0:03:42.780 are important, but they're not the most important. The most 0:03:42.780 --> 0:03:47.260 important part of parenting shepherding our child's heart is difficult 0:03:47.260 --> 0:03:50.700 and time consuming, but it's also less costly. 0:03:50.980 --> 0:03:53.900 Yeah. And the one can never make up for the other, 0:03:53.900 --> 0:03:56.170 that's for sure. All right, What's number five? 0:03:56.770 --> 0:03:59.490 It's the one that you mentioned in the beginning, wanting 0:03:59.530 --> 0:04:02.890 to give your kids what you didn't have growing up. 0:04:03.130 --> 0:04:06.290 You probably remember a time when, as a child, you 0:04:06.290 --> 0:04:08.690 didn't get something you wanted. Maybe it was a new bike. 0:04:08.690 --> 0:04:12.370 Maybe as a teenager it was a certain car. You 0:04:12.370 --> 0:04:14.730 or your parents, they just couldn't afford it. And you 0:04:14.730 --> 0:04:17.810 remember how you felt. Now, as a parent, you don't 0:04:17.810 --> 0:04:21.330 want your child to experience those exact same feelings you had. 0:04:21.330 --> 0:04:25.650 So when they ask, they get even if the purchase 0:04:25.650 --> 0:04:27.210 requires a credit card. 0:04:27.490 --> 0:04:29.450 Oh boy. And that's a tough one. And it leads 0:04:29.450 --> 0:04:32.409 right into the last one we've got just 30s. 0:04:32.410 --> 0:04:36.930 Yeah, that's right. Not considering how lacking something actually helped 0:04:36.930 --> 0:04:40.010 you as a kid. You remember liking something as a kid, 0:04:40.010 --> 0:04:43.409 but do you also remember what resulted from not being 0:04:43.410 --> 0:04:46.409 able to get that item? You may have resorted to 0:04:46.450 --> 0:04:49.250 more creative play. Um, if you were a teenager, you 0:04:49.250 --> 0:04:51.849 may have gotten a job. Those moments in your childhood 0:04:51.890 --> 0:04:54.920 helped you in your growth as an individual. Now, don't 0:04:54.920 --> 0:04:57.320 you want your children to have the same opportunity? 0:04:57.760 --> 0:05:01.640 Absolutely. Boy, those are really good. And I really appreciate 0:05:01.640 --> 0:05:03.760 you stopping by our really good stuff. 0:05:04.080 --> 0:05:05.040 Thanks for having me. 0:05:05.400 --> 0:05:08.280 That was doctor Art Rayner, director of the Institute for 0:05:08.279 --> 0:05:13.600 Christian Financial Health. You can learn more at Christian Financial Health. Com. 0:05:13.920 --> 0:05:15.360 All right. We're going to head to a break. So 0:05:15.360 --> 0:05:18.080 don't go anywhere. Still a lot more to come even 0:05:18.120 --> 0:05:20.560 though we're away from the studio today and you shouldn't 0:05:20.560 --> 0:05:23.200 call in. We have some great questions that you're really 0:05:23.200 --> 0:05:25.920 going to enjoy. As we continue to apply God's wisdom 0:05:25.920 --> 0:05:35.120 to your financial decisions. We'll be right back. Thanks for 0:05:35.120 --> 0:05:37.880 joining us today on Faith and Finance Live. Hey, a 0:05:37.880 --> 0:05:40.200 quick email before we head to the phones. This one 0:05:40.200 --> 0:05:42.200 comes to us from Emily. By the way, if you 0:05:42.200 --> 0:05:44.680 have a question you'd like, read on the air. We'd 0:05:44.680 --> 0:05:47.320 love to hear from you. Send it along to ask 0:05:47.320 --> 0:05:52.750 Rob at Faith Philly.com. That's ask Rob at Faith. Dot com, 0:05:52.750 --> 0:05:56.310 Emily writes I'm employed and currently receiving Social Security income. 0:05:56.430 --> 0:05:58.830 I tithe on my salary. Should I also tithe on 0:05:58.830 --> 0:06:02.390 my Social Security income? I love your program and listen 0:06:02.390 --> 0:06:05.710 at work. Thanks. And Emily, thanks for this question. Clearly 0:06:05.830 --> 0:06:09.030 you're wanting to be a generous sower. Be faithful in 0:06:09.029 --> 0:06:11.710 your giving to the Lord, and I appreciate that. Um, 0:06:11.750 --> 0:06:14.390 here's my perspective. First of all, the tithe is a 0:06:14.390 --> 0:06:18.349 great beginning point for our giving. It's we're no longer 0:06:18.350 --> 0:06:21.510 under the Law of Moses. And yet, uh, we I 0:06:21.550 --> 0:06:24.030 think we should give proportionately. We see that in the, 0:06:24.070 --> 0:06:27.310 in the New Testament for sure. We should give sacrificially. 0:06:27.310 --> 0:06:30.310 And so starting with this idea that we would recognize 0:06:30.310 --> 0:06:34.390 God's ownership and give in proportion to our income, the 0:06:34.390 --> 0:06:37.510 tithe is a great principle to apply to that. Uh, 0:06:37.510 --> 0:06:39.630 so you would give, in the case of a tie, 0:06:39.670 --> 0:06:42.870 the 10th of your increase. The question is, is your 0:06:42.870 --> 0:06:46.510 Social Security increase? Uh, if you tithe on your gross 0:06:46.510 --> 0:06:50.030 income throughout your working life, clearly a portion of what 0:06:50.029 --> 0:06:53.390 you're getting from Social Security is a return of what 0:06:53.390 --> 0:06:55.950 you put into the system. The challenge is it would 0:06:55.950 --> 0:06:58.910 take an army of CPAs to figure out what portion 0:06:58.910 --> 0:07:03.150 is yours, what portion was your employer's contribution? Because remember, 0:07:03.190 --> 0:07:05.390 they paid half of the FICA tax. And then what 0:07:05.390 --> 0:07:08.789 portion was the growth that occurred while it was in there? 0:07:08.910 --> 0:07:11.590 And so I think for that reason, I would probably 0:07:11.590 --> 0:07:14.710 take the perspective that let's look at anything we receive 0:07:14.710 --> 0:07:17.470 from the Lord as a gracious gift from the Lord, 0:07:17.470 --> 0:07:21.230 no matter what its source was, whether it's SSI or 0:07:21.270 --> 0:07:25.830 Social Security or disability or an inheritance or a paycheck. 0:07:25.830 --> 0:07:28.510 And just say, Lord, I'm going to demonstrate my trust 0:07:28.510 --> 0:07:32.550 in you as my provider, knowing that your provision is complete. 0:07:32.710 --> 0:07:35.150 And I want to be partnered with you in giving 0:07:35.190 --> 0:07:37.510 in proportion to how you've prospered me. That would be 0:07:37.510 --> 0:07:40.590 the approach that I would take, as opposed to trying 0:07:40.590 --> 0:07:43.390 to figure out what portion falls into which bucket. But 0:07:43.430 --> 0:07:45.350 at the end of the day, Emily, I realize that 0:07:45.350 --> 0:07:47.110 the heart behind this is that you want to honor 0:07:47.150 --> 0:07:49.510 the Lord. And so I would just be on your 0:07:49.620 --> 0:07:52.460 knees if you're married. You and your husband. Just asking 0:07:52.460 --> 0:07:54.380 the Lord, what would you have me to do? And 0:07:54.420 --> 0:07:56.220 I think as long as you follow the leading of 0:07:56.220 --> 0:07:59.820 the Lord, you give cheerfully as an act of worship. 0:08:00.180 --> 0:08:03.100 I don't think the the percentage or checking a box 0:08:03.100 --> 0:08:05.780 is really the most important thing. So hopefully that's helpful 0:08:05.780 --> 0:08:08.020 to you as you think and pray through this. Uh, 0:08:08.020 --> 0:08:09.860 before we head to the phones in the news, there's 0:08:09.860 --> 0:08:13.540 more evidence of a budding buyer's market in real estate. 0:08:13.580 --> 0:08:18.300 That's right. According to a new report by Redfin, about 44% 0:08:18.300 --> 0:08:21.860 of home sales in the first quarter involved sellers giving 0:08:21.860 --> 0:08:26.460 buyers concessions. As the housing market starts to favor buyers, 0:08:26.460 --> 0:08:29.980 they now have more options to choose from, and that 0:08:29.980 --> 0:08:34.940 brings negotiating power. Concessions are essentially arrangements between a buyer 0:08:34.940 --> 0:08:37.980 and a seller to adjust the price or other terms 0:08:37.980 --> 0:08:41.500 of the sale, for various reasons that could be issues 0:08:41.500 --> 0:08:44.980 discovered in a home inspection or other issues as well 0:08:45.300 --> 0:08:50.530 high mortgage rates, home values, and economic uncertainty continue to 0:08:50.530 --> 0:08:54.370 be a drag on home sales. But with inventories rising, 0:08:54.370 --> 0:08:58.130 sellers have more competition, so listings are now at a 0:08:58.130 --> 0:09:03.570 five year high. According to Redfin report, that competition is 0:09:03.570 --> 0:09:07.050 translating into more leverage at the closing table for home buyers. 0:09:07.050 --> 0:09:10.689 So if you've been waiting to get into this housing market, 0:09:10.690 --> 0:09:13.530 I realize interest rates haven't come down as we expected 0:09:13.530 --> 0:09:17.130 they would in 2025 thus far, and they probably won't. 0:09:17.130 --> 0:09:20.450 Most economists are thinking we'll finish the year somewhere around 0:09:20.450 --> 0:09:23.290 six and a quarter. That's just an estimate. Certainly could 0:09:23.290 --> 0:09:26.410 be higher or lower than that. But that's where consensus 0:09:26.450 --> 0:09:29.810 is right now around 6.25. So if you have the 0:09:29.809 --> 0:09:33.650 money to make that purchase, meaning you've got that 20% 0:09:33.650 --> 0:09:37.010 down payment, you're not going to spend more than 25 0:09:37.010 --> 0:09:40.490 max 30% of your take home pay on principle interest, 0:09:40.490 --> 0:09:44.410 taxes and insurance, and therefore it fits well within your budget. 0:09:44.410 --> 0:09:48.800 This may be that time during this buyer's market, which 0:09:48.800 --> 0:09:51.240 is quickly emerging for you to go ahead and enter 0:09:51.240 --> 0:09:53.719 this housing market. By the way, if you need a 0:09:53.720 --> 0:09:56.760 mortgage partner on that, our friends at Movement Mortgage would 0:09:56.760 --> 0:09:59.520 be delighted to serve you. You can go to movement. 0:10:01.120 --> 0:10:03.079 All right. Let's dive into your questions. Today. We're going 0:10:03.080 --> 0:10:05.520 to begin in New York. Uh, Nick, thanks for your patience, sir. 0:10:05.559 --> 0:10:06.160 Go ahead. 0:10:07.400 --> 0:10:08.800 Hey, Rob. How are you doing, man? 0:10:08.840 --> 0:10:10.280 I'm doing great. Thanks for your call. 0:10:10.679 --> 0:10:13.360 Hey. You bet. Hey, great. Great way to tee it off. 0:10:13.360 --> 0:10:17.760 Because my question is actually all about mortgages and expected 0:10:17.760 --> 0:10:22.880 interest rates. And most importantly, I'd say the biblical principle of, uh, 0:10:22.920 --> 0:10:26.720 not being a slave to debt. And, uh, I'm just 0:10:26.720 --> 0:10:30.160 faced with some options here. So I bought a house 0:10:30.160 --> 0:10:34.400 a year ago. Um, did it just as you just described. Um, 0:10:34.440 --> 0:10:39.400 thank God, where I paid over 20%. Um, my mortgage 0:10:39.400 --> 0:10:43.200 payment is less than one third of my take home pay, 0:10:43.640 --> 0:10:47.350 and I'm doing pretty good. I was having in the 0:10:47.350 --> 0:10:51.309 back of my mind that I would refinance when rates 0:10:51.309 --> 0:10:58.189 came down, and so I have been stockpiling money in savings. Actually, 0:10:58.190 --> 0:11:01.829 I put it in T-bills while I wait instead of 0:11:01.830 --> 0:11:05.750 putting it on the mortgage principal directly. Yeah. And my 0:11:05.750 --> 0:11:09.030 question is, um, I'm trying to pay off the house 0:11:09.030 --> 0:11:13.110 completely as fast as I can. So would you suggest 0:11:13.110 --> 0:11:18.150 I pause putting 15% in my retirement to accelerate that 0:11:18.150 --> 0:11:23.270 goal of being completely out of debt, or should I 0:11:23.309 --> 0:11:28.670 continue to faithfully contribute towards retirement as well as do 0:11:28.670 --> 0:11:30.150 this at the same time? 0:11:30.630 --> 0:11:33.750 Yeah. Boy, it's a great question. Talk to me about 0:11:33.750 --> 0:11:37.469 your desire to be debt free. I understand that's really strong. 0:11:37.510 --> 0:11:41.390 Is that out of just a desire to minimize the 0:11:41.390 --> 0:11:44.950 amount of interest you pay and therefore really the financial 0:11:44.950 --> 0:11:47.990 side of the equation is the primary driver, or is 0:11:47.990 --> 0:11:51.910 there some conviction there that you just really feel like 0:11:51.950 --> 0:11:54.510 you need to be out of debt as soon as possible? 0:11:54.510 --> 0:11:57.230 You've thought through that, you've prayed through that, and that's 0:11:57.230 --> 0:11:59.670 really the driver. I realize it could be some combination 0:11:59.670 --> 0:12:02.350 of the two, but which side would you come down on? 0:12:04.910 --> 0:12:07.910 I think you're right. It's a combination of the two. 0:12:08.750 --> 0:12:12.030 I think that, you know, like there's there's two types 0:12:12.030 --> 0:12:14.390 of people in this world, those who pay interest and 0:12:14.390 --> 0:12:15.590 those who earn interest. 0:12:15.630 --> 0:12:16.270 Right. 0:12:16.309 --> 0:12:19.350 And sometimes we do both, but they work against each other. 0:12:19.390 --> 0:12:22.550 So if I'm looking to build wealth so, you know, 0:12:22.550 --> 0:12:25.350 I can live life like nobody else and give like 0:12:25.350 --> 0:12:29.189 nobody else in the future, then I'd like to not 0:12:29.190 --> 0:12:31.590 be the type of person who pays interest. 0:12:31.630 --> 0:12:34.550 Yeah, I hear some Dave Ramsey coming through there. Are 0:12:34.550 --> 0:12:36.110 you are you a Dave Ramsey fan? 0:12:37.510 --> 0:12:38.230 I am. 0:12:38.270 --> 0:12:41.630 All right. That's great. Well, Dave's a good friend. He 0:12:41.670 --> 0:12:45.100 he absolutely has. Um, and I think he would, you know, 0:12:45.100 --> 0:12:46.740 what he would say is get out of debt as 0:12:46.740 --> 0:12:48.980 soon as possible. And, and, you know, I love that idea. 0:12:49.020 --> 0:12:51.100 I mean, I'm big on getting out of debt and 0:12:51.100 --> 0:12:55.020 staying there. I think listen, you've done a lot, right, Nick? Uh, 0:12:55.020 --> 0:12:58.260 I mean, you're in a really strong financial position. I think. 0:12:58.260 --> 0:13:01.020 Now your opportunity. And I'll send you something that I 0:13:01.020 --> 0:13:03.500 think could be a great starting point in thinking and 0:13:03.500 --> 0:13:05.580 praying through this here in a moment. But, uh, I 0:13:05.580 --> 0:13:08.540 think you're in a position where you're probably going to 0:13:08.740 --> 0:13:12.500 or have the potential to over accumulate. So I think 0:13:12.500 --> 0:13:15.620 it's going to be important for you to begin to 0:13:15.660 --> 0:13:18.460 think and pray through what your financial finish line is 0:13:18.660 --> 0:13:22.500 so that you can accelerate that giving. Um, because I think, 0:13:22.540 --> 0:13:24.500 you know, it's wise to save for the future. But 0:13:24.500 --> 0:13:26.500 I think we all have to answer the question, how 0:13:26.500 --> 0:13:30.580 much is enough? And that's both for lifestyle and accumulation. 0:13:30.580 --> 0:13:33.260 And just given how quickly, you know, you've gotten yourself 0:13:33.260 --> 0:13:36.900 in a solid position here, especially once that mortgage is gone. 0:13:37.100 --> 0:13:39.420 You know, you've got your emergency fund, you're debt free. 0:13:39.460 --> 0:13:41.610 I suspect you're going to stay there. Just hearing that 0:13:41.610 --> 0:13:44.170 conviction in your voice. Um, you know, you're going to 0:13:44.170 --> 0:13:46.130 be able to sock away a lot of money and 0:13:46.130 --> 0:13:48.730 you could build that quickly. And I think quickly get 0:13:48.730 --> 0:13:50.690 to the place where you say, do I really need 0:13:50.690 --> 0:13:53.770 all this? Especially with the glide path on where you 0:13:53.770 --> 0:13:56.290 could end up when you get to that retirement season 0:13:56.330 --> 0:13:58.810 of life. So I would say, well, let me ask this. 0:13:58.809 --> 0:14:00.770 What is the interest rate on that mortgage? 0:14:02.250 --> 0:14:04.890 That's a great question. And that's definitely a factor. So 0:14:04.929 --> 0:14:06.970 the interest is six and a half. 0:14:07.010 --> 0:14:07.250 Okay. 0:14:07.290 --> 0:14:09.610 So if it was only like, you know 3 to 4, 0:14:09.650 --> 0:14:11.929 you know I could see your point. But that's one 0:14:11.929 --> 0:14:13.570 of the driving factors is. 0:14:13.970 --> 0:14:14.170 Yeah. 0:14:14.210 --> 0:14:15.050 It's a high rate. 0:14:15.090 --> 0:14:18.329 Exactly. So I would say go after it. I probably 0:14:18.330 --> 0:14:21.850 wouldn't back down on the retirement plan. But any other surplus, 0:14:21.850 --> 0:14:24.610 including the money that was in the T-bills, I'd put 0:14:24.610 --> 0:14:27.450 that on the mortgage as soon as possible. Let's stay 0:14:27.450 --> 0:14:29.250 on the line and we'll talk off the air. I'll 0:14:29.250 --> 0:14:35.650 be right back. Hey, great to have you with us 0:14:35.650 --> 0:14:39.130 today on Faith and Finance Live. I'm Rob West, your host. 0:14:39.170 --> 0:14:41.480 Our team is away from the studio today, so don't 0:14:41.480 --> 0:14:44.480 call in. But coming up a little later, we'll have 0:14:44.480 --> 0:14:47.880 more of your questions right here on the program. Hey, 0:14:47.880 --> 0:14:51.600 let me take a moment to mention the Faith fi app. 0:14:51.760 --> 0:14:53.760 We'd love for you to download it. Just head to 0:14:53.760 --> 0:14:57.320 your app store wherever you download apps and search for 0:14:57.360 --> 0:15:00.560 Faith fi. That's Faith fi. You can manage your money. 0:15:00.560 --> 0:15:05.120 You can access the best content in biblical finance podcasts, articles, 0:15:05.120 --> 0:15:09.359 and videos. You can also participate in our Faith fi community, 0:15:09.360 --> 0:15:12.520 where you can post questions and get answers from others 0:15:12.520 --> 0:15:15.760 on their stewardship journey. You'll find it in your app store. 0:15:15.760 --> 0:15:18.080 Just search for Faith fi or if it's easier, head 0:15:18.080 --> 0:15:23.880 to our website at Faith Philly.com. That's Faith fi and 0:15:23.880 --> 0:15:26.520 you'll see the app right there on the home page. 0:15:26.960 --> 0:15:29.000 Now let's head back to the phone calls we have 0:15:29.000 --> 0:15:31.480 lined up. I had a chance to finish up with 0:15:31.480 --> 0:15:34.480 Nick in New York. Off the air here during the break. 0:15:34.520 --> 0:15:38.040 And you know, the other question he raised is, you know, 0:15:38.080 --> 0:15:43.120 he's been putting money aside in T-bills, his surplus that 0:15:43.120 --> 0:15:46.320 eventually he wants to put toward the mortgage, thinking that, well, 0:15:46.320 --> 0:15:48.840 I'm going to refinance. And, you know, a year or two, 0:15:48.880 --> 0:15:51.120 once I can get down at least a point and 0:15:51.120 --> 0:15:55.160 a half, maybe two points on that 6%, 6.5% interest rate, 0:15:55.160 --> 0:15:59.080 I'm paying. So he's waiting until he gets down to, to, uh, perhaps, 0:15:59.240 --> 0:16:01.720 you know, four and a half, maybe 5%. Well, that's 0:16:01.720 --> 0:16:03.760 going to be a while. Uh, you know, that could 0:16:03.760 --> 0:16:07.000 easily be two years, maybe less, but it certainly could 0:16:07.000 --> 0:16:09.880 be two years. And what we talked about is, you know, 0:16:09.880 --> 0:16:12.680 I don't think there's any reason to wait until the 0:16:12.680 --> 0:16:16.080 refi that really should have no bearing on money that 0:16:16.080 --> 0:16:18.440 you're going to put toward the mortgage, in fact, that 0:16:18.440 --> 0:16:21.880 money toward the mortgage now, with the higher interest rate, 0:16:22.160 --> 0:16:25.400 actually is going to give you more benefit than when 0:16:25.400 --> 0:16:27.560 it's applied. Or if you wait and apply it to 0:16:27.600 --> 0:16:30.760 that new mortgage, that's a lower interest rate. So he's 0:16:30.760 --> 0:16:33.320 putting it in T-bills, he's paying tax on the interest. 0:16:33.320 --> 0:16:36.080 And then he's going to put eventually that toward the mortgage. 0:16:36.080 --> 0:16:38.470 Let's get that toward the mortgage now and save the 0:16:38.470 --> 0:16:42.390 equivalent of today's interest rate, which is a 6.5%. So 0:16:42.670 --> 0:16:45.350 he's going to move forward with that. He's also going 0:16:45.390 --> 0:16:48.550 to think about, you know, I'm comfortable in his position 0:16:48.550 --> 0:16:52.750 with him staying fully invested or contributing to a retirement plan, 0:16:52.750 --> 0:16:56.720 which is that full 15%, because we usually say 10 0:16:56.720 --> 0:17:00.870 to 15% toward the 401 K, I'm comfortable with maintaining 0:17:00.870 --> 0:17:03.310 that and then just putting whatever surplus he has toward 0:17:03.310 --> 0:17:05.750 the mortgage. But certainly if he wants to ratchet that 0:17:05.750 --> 0:17:09.110 down and prioritize getting out of debt, including his mortgage, 0:17:09.310 --> 0:17:10.990 I don't have any issue with that. I think that's 0:17:10.990 --> 0:17:13.350 never a bad choice. See, this is one of those 0:17:13.350 --> 0:17:16.670 where you know what? Either is a great option. It 0:17:16.670 --> 0:17:19.870 really comes down to my values and my priorities in 0:17:19.910 --> 0:17:23.310 terms of how I set goals, not anything else. So boy, 0:17:23.310 --> 0:17:26.469 what a great conversation and appreciate Nick being on the 0:17:26.470 --> 0:17:30.150 program today. Let's head to um. Tom is in Maryland 0:17:30.150 --> 0:17:31.630 waiting patiently. Go ahead Tom. 0:17:32.430 --> 0:17:37.619 Rob. Your expertise overwhelms me, But, uh, a couple of 0:17:37.619 --> 0:17:40.459 weeks ago, you talked to a gentleman. Sounds like he 0:17:40.460 --> 0:17:43.580 and I are in the same boat. Uh, he was 0:17:43.619 --> 0:17:46.780 a he's a veteran and pulled in $1,800 a month. 0:17:47.619 --> 0:17:51.620 I'm a veteran. Pulled in 1900, a month. And without 0:17:51.619 --> 0:17:57.180 getting into a bunch of weeds, uh, negligence on my part. 0:17:57.859 --> 0:18:02.020 I ended up paying a penalty on my Social Security premium. 0:18:02.700 --> 0:18:05.900 The question is, can I. Is there any way that 0:18:05.900 --> 0:18:08.740 this penalty can be waived because of hardship? 0:18:09.540 --> 0:18:12.619 Yeah. So you're talking about the premium related to Medicare 0:18:12.660 --> 0:18:14.140 Part B, is that right? 0:18:14.780 --> 0:18:15.460 Right. 0:18:15.619 --> 0:18:17.940 And why did you have that? Was that because you 0:18:17.940 --> 0:18:19.780 enrolled late or something else? 0:18:20.540 --> 0:18:21.379 Exactly. 0:18:21.660 --> 0:18:26.419 Okay. Yeah. Um, so, yeah, I mean, with with regard 0:18:26.420 --> 0:18:30.780 to that late enrollment penalty, uh, there are some cases 0:18:30.780 --> 0:18:33.020 where that can be waived, but it really depends on 0:18:33.020 --> 0:18:38.530 the situation. Um, you know, essentially, if you, uh, enrolled 0:18:38.530 --> 0:18:42.570 late because of incorrect advice from a federal government source, 0:18:42.609 --> 0:18:45.889 you can request a waiver called Equitable Relief. Uh, it 0:18:45.890 --> 0:18:48.450 could be reduced or waived if there was a delay 0:18:48.450 --> 0:18:53.250 due to unusual circumstances, like an illness or family member's 0:18:53.250 --> 0:18:57.650 death or kind of a local disaster or something like that. Um, 0:18:57.650 --> 0:19:00.650 but you would need to provide a written explanation. Apart 0:19:00.650 --> 0:19:03.050 from that, you know, there's not a whole lot you 0:19:03.050 --> 0:19:06.330 can do about it that I'm aware of just because, 0:19:06.369 --> 0:19:08.129 you know, they give you that window of time to 0:19:08.130 --> 0:19:10.770 get in. And if you don't, they assess the penalty 0:19:10.770 --> 0:19:13.290 and there's a lot of people paying it, unfortunately, which 0:19:13.290 --> 0:19:16.170 is why we try to make as as many people 0:19:16.170 --> 0:19:19.609 aware of that window as possible. But it does take 0:19:19.609 --> 0:19:23.370 a pretty significant extenuating circumstance that you would need to 0:19:23.410 --> 0:19:26.410 document and request the waiver to see if they would 0:19:26.410 --> 0:19:27.050 approve it. 0:19:27.530 --> 0:19:29.290 Gotcha. Thank you so much, Rob. 0:19:29.330 --> 0:19:31.370 All right sir. God bless you. And we appreciate your 0:19:31.369 --> 0:19:34.850 kind remarks about the program. Call anytime. Uh. Let's see, 0:19:34.890 --> 0:19:36.610 back to New York. Hi, Doug. Go ahead. 0:19:37.130 --> 0:19:39.290 I was hoping you could help me with my frustration 0:19:39.290 --> 0:19:40.889 regarding my 401 K. 0:19:41.050 --> 0:19:41.409 Okay. 0:19:41.450 --> 0:19:43.970 I had a couple, uh, noticeable losses here for the 0:19:43.970 --> 0:19:47.209 Covid and the tariff situation. And it seems when the 0:19:47.210 --> 0:19:50.770 stock market bounces back, I can never recover. You know, 0:19:50.810 --> 0:19:54.530 close to the 100% that the stock market bounces back to. 0:19:54.770 --> 0:19:57.490 And is that primarily where the mutual funds are invested 0:19:57.490 --> 0:19:59.889 in the stocks or what are your thoughts on that? 0:19:59.930 --> 0:20:03.810 Yeah, totally is Doug. I mean, you know, when when 0:20:03.810 --> 0:20:07.090 we look at the market, we we often say the 0:20:07.090 --> 0:20:09.770 market did this or the market did that. The question is, 0:20:09.770 --> 0:20:11.929 what part of the market are we looking at. And 0:20:11.970 --> 0:20:14.170 you know, a lot of times we'll look at either 0:20:14.290 --> 0:20:17.210 the Dow Jones which is just 30 companies. We might 0:20:17.210 --> 0:20:20.050 look at the S&P 500, which are the 500 large 0:20:20.130 --> 0:20:23.290 cap stocks here in the US. Or we might say that, 0:20:23.330 --> 0:20:27.050 you know, look at the Nasdaq, which is largely technology based, 0:20:27.050 --> 0:20:30.050 although it goes beyond that. But that's the highest concentration. 0:20:30.050 --> 0:20:33.000 And so those represent sectors of the market. But there's 0:20:33.000 --> 0:20:35.440 a whole, you know, other part of the market. I mean, 0:20:35.480 --> 0:20:39.879 the Russell 3000 obviously is a much broader look at 0:20:39.880 --> 0:20:43.440 a segment of the market. There's the bond market. So yeah, 0:20:43.440 --> 0:20:46.639 it really does come down to what sectors of the 0:20:46.640 --> 0:20:50.800 market you're in. And that's going to really drive both. 0:20:50.840 --> 0:20:54.160 You know how quickly you see it decline. Uh, given 0:20:54.160 --> 0:20:58.320 the economic conditions and factors driving the declines and how 0:20:58.320 --> 0:21:01.760 quickly we recover. So a good example of that would be, 0:21:01.800 --> 0:21:03.760 you know, just the last several years, a lot of 0:21:03.800 --> 0:21:06.480 the the run ups in the market have been around 0:21:06.480 --> 0:21:11.359 the Magnificent Seven, um, largely tech driven because of AI 0:21:11.400 --> 0:21:14.679 and some of the innovations, you know, these mega-cap companies 0:21:14.680 --> 0:21:17.520 that really, you know, were the driver of the market. Well, 0:21:17.520 --> 0:21:20.280 they were the quickest to fall and, you know, have 0:21:20.280 --> 0:21:23.960 not recovered as quickly either. And so, yeah, it's ultimately 0:21:23.960 --> 0:21:26.520 going to come down to what mix of investments do 0:21:26.520 --> 0:21:30.750 you do you have are they the right mix for you. And, 0:21:30.790 --> 0:21:33.430 you know, that's obviously going to have everything to do with, 0:21:33.550 --> 0:21:37.150 you know, how quickly they recover and why the market 0:21:37.190 --> 0:21:39.870 sold off in the first place. So I think if 0:21:39.869 --> 0:21:41.910 you want to dive into this more fully, it would 0:21:41.910 --> 0:21:46.070 take an advisor to really unpack how you're invested. Stay 0:21:46.070 --> 0:21:48.270 on the line. We'll talk a bit more off the air. Well, folks, 0:21:48.270 --> 0:21:49.669 we're going to head to a break. But let me 0:21:49.670 --> 0:21:52.510 remind you, we're out of the studio today. Our team 0:21:52.510 --> 0:21:55.310 is not here, so don't call in. But much more 0:21:55.310 --> 0:21:58.590 to come just around the corner on faith and finance. Live. 0:21:58.630 --> 0:22:06.350 Stick around. Great to have you with us on faith 0:22:06.350 --> 0:22:09.070 and finance. Live. I'm Rob West. Let me remind you 0:22:09.070 --> 0:22:11.910 that we're not live today, so don't call in. But 0:22:11.910 --> 0:22:15.150 we have great information lined up ahead in the program 0:22:15.150 --> 0:22:17.950 coming your way. Hey, if you'd like to support our 0:22:17.950 --> 0:22:21.190 work here at Faith and finance as a listener supported ministry, 0:22:21.190 --> 0:22:24.149 we don't do this without you. The best way to 0:22:24.150 --> 0:22:26.430 do that is through what we call our partner program. 0:22:26.430 --> 0:22:29.740 These are the the folks that support us monthly. And boy, 0:22:29.740 --> 0:22:32.500 that goes a long way to helping us reach more 0:22:32.500 --> 0:22:35.500 people with this message and continuing not only to produce 0:22:35.500 --> 0:22:38.820 this program, but all the resources we create on a 0:22:38.820 --> 0:22:41.380 monthly basis. If you'd like to become a partner, just 0:22:41.380 --> 0:22:45.260 head to our website. Faith Philly.com. Faith Philly.com. Click give 0:22:45.300 --> 0:22:48.100 at the top of the page and a gift of 0:22:48.100 --> 0:22:51.740 $35 a month or more, $400 or more a year 0:22:51.820 --> 0:22:54.580 will make you a partner. What does that do for you? Well, 0:22:54.619 --> 0:22:56.500 not only do you support the ministry and help us 0:22:56.500 --> 0:22:59.540 reach more people, but we'll send you four copies of 0:22:59.540 --> 0:23:02.419 our quarterly magazine, Faithful Steward. You're going to love it. 0:23:02.460 --> 0:23:05.460 It's amazing. I just got issue two last week and 0:23:05.460 --> 0:23:09.300 it is gorgeous. And the articles are incredible. Uh, all 0:23:09.340 --> 0:23:11.460 of our studies and devotionals, when they come out, will 0:23:11.460 --> 0:23:13.780 be mailed to you. Our new one, Wisdom Over Wealth, 0:23:13.780 --> 0:23:17.380 comes out here in the next two weeks. Um, it's 0:23:17.380 --> 0:23:20.300 a deep dive into the book of Ecclesiastes around the 0:23:20.300 --> 0:23:22.979 the money topics. It's a rich teaching. You're going to 0:23:22.980 --> 0:23:26.740 love it. And you also get full pro access to 0:23:26.780 --> 0:23:29.290 the Faith VI app, which means you can connect up 0:23:29.290 --> 0:23:32.730 all of your accounts to all of your credit cards 0:23:32.730 --> 0:23:35.730 and investment accounts, and your bank. You can use our 0:23:35.730 --> 0:23:39.690 money management system. You'll be able to access digital versions 0:23:39.690 --> 0:23:42.050 of all of our studies and devotions, and our magazine 0:23:42.050 --> 0:23:45.210 coming this fall. All of that is made available to 0:23:45.210 --> 0:23:47.570 our faith VI partners. If you want to become one, 0:23:47.570 --> 0:23:50.730 just head to our website and click give at the 0:23:50.730 --> 0:23:52.689 top of the page. All right. We're going to head 0:23:52.690 --> 0:23:54.410 back to the phones here. We've got two lines open. 0:23:54.410 --> 0:23:59.010 You can call right now 800 525 7000. Let's go 0:23:59.010 --> 0:24:01.369 to Arkansas. Lynn, thanks so much for your patience. Go 0:24:01.369 --> 0:24:01.970 right ahead. 0:24:03.250 --> 0:24:06.890 Hi. Thank you. Yeah. I wanted to know when you 0:24:06.890 --> 0:24:11.210 change insurance companies. I had a claim for a new roof, 0:24:11.210 --> 0:24:15.369 and my insurance went up quite a bit anyway. Um, 0:24:15.369 --> 0:24:18.850 and you are talking to a new company and your. 0:24:19.410 --> 0:24:22.890 Do they know, uh, like, do they research on the 0:24:22.890 --> 0:24:25.650 internet or something to see if you've had a claim 0:24:25.770 --> 0:24:28.890 And are your rates higher because of that? 0:24:29.490 --> 0:24:34.730 Interesting. Yeah. So you had a claim recently, is that right? 0:24:36.609 --> 0:24:39.370 Uh, yeah. And what was funny about it was that 0:24:39.369 --> 0:24:42.010 two roofers told me I didn't need a new roof, 0:24:42.010 --> 0:24:44.890 but I had a leak, and they came out and said, 0:24:44.890 --> 0:24:48.170 you need a new roof anyway, so I got it. 0:24:48.530 --> 0:24:52.490 But then my rates went up and they went up 0:24:52.490 --> 0:24:56.010 the month that I got my next payment, which was 0:24:56.010 --> 0:25:01.170 quite a bit, I mean like 170 over what I 0:25:01.170 --> 0:25:03.490 was paying, which was kind of a shock. 0:25:03.530 --> 0:25:07.690 Got it. Yeah, that makes sense. Yeah. Unfortunately, when you 0:25:07.690 --> 0:25:12.770 switch homeowners insurance companies, the new insurer will usually access 0:25:12.770 --> 0:25:17.410 your claim history. There's a a national database called clue, 0:25:17.450 --> 0:25:23.330 which is short for the Comprehensive Loss Underwriting Exchange. And 0:25:23.330 --> 0:25:26.600 through that they can usually claim your claims history. I 0:25:26.600 --> 0:25:29.960 think that goes back 5 to 7 years. So if 0:25:29.960 --> 0:25:32.920 this was recent, you know, your roof claim would likely 0:25:33.280 --> 0:25:35.560 show up with the date and the details and the 0:25:35.560 --> 0:25:38.640 fact that it was from storm damage and so forth. Um, 0:25:38.760 --> 0:25:42.320 you know, a single roof claim, especially for an unavoidable 0:25:42.320 --> 0:25:45.960 weather damage like hail or wind or something like that, um, 0:25:46.000 --> 0:25:49.639 you know, would likely not drastically raise your rates. Uh, 0:25:49.680 --> 0:25:52.160 you know, those are seen as less risky than frequent 0:25:52.160 --> 0:25:56.320 or maybe preventable claims. Um, you know, there could be 0:25:56.320 --> 0:25:59.160 an increase. Obviously, you saw one with your previous employer 0:25:59.160 --> 0:26:01.800 and it would be it could be factored in here. 0:26:01.800 --> 0:26:04.439 But I think, you know, the key for you is 0:26:04.440 --> 0:26:10.320 to shop around, um, really comparing quotes from multiple insurers. Now, remember, 0:26:10.440 --> 0:26:14.520 the price is not the only issue to look at. Um, 0:26:14.560 --> 0:26:16.400 because you want to make sure you're with somebody that 0:26:16.400 --> 0:26:19.480 gets good reviews with regard to, you know, customer service 0:26:19.480 --> 0:26:21.879 and that they, you know, will follow through quickly on 0:26:21.880 --> 0:26:25.950 your claim and, you know, give you a good comprehensive coverage. 0:26:26.350 --> 0:26:28.830 If you want to get a copy of your clue report, 0:26:28.830 --> 0:26:31.830 you can actually get a free copy annually just to 0:26:31.869 --> 0:26:35.710 see what the insurers will see. And I can give 0:26:35.710 --> 0:26:39.230 you that phone number if you're interested. Um, but the 0:26:39.230 --> 0:26:42.350 the other option I would throw out at you is, um, 0:26:42.390 --> 0:26:45.510 you know, higher deductibles obviously can lower those premiums. That's 0:26:45.510 --> 0:26:47.470 going to mean more out of pocket costs. You're going 0:26:47.510 --> 0:26:49.869 to want to have that money in your emergency fund. 0:26:49.869 --> 0:26:53.830 But if you did and you don't have claims often, then, um, 0:26:53.830 --> 0:26:55.910 you know, that that could save you some money over 0:26:55.910 --> 0:26:57.670 the long haul. But yeah, let me give you that 0:26:57.670 --> 0:26:58.950 phone number. Do you have a pen handy? 0:27:00.150 --> 0:27:00.790 Yes. 0:27:00.910 --> 0:27:12.869 All right. It's 86631280768663128076. And you can request that report. 0:27:14.150 --> 0:27:16.190 And what is the report called? 0:27:16.310 --> 0:27:18.110 What do I show you. 0:27:19.430 --> 0:27:24.100 The clue report which stands for Comprehensive Loss Underwriting Exchange 0:27:24.100 --> 0:27:26.899 and you can get. My understanding is my team is 0:27:26.900 --> 0:27:29.300 saying you can get one of those free annually. 0:27:30.460 --> 0:27:32.460 Okay, great. Thank you very much. 0:27:32.500 --> 0:27:34.580 All right. Thank you, Lynn, we appreciate your call. God 0:27:34.580 --> 0:27:37.619 bless you too. Oklahoma. Hi, Larry. Go ahead sir. 0:27:38.380 --> 0:27:40.139 Hi, Rob. Thanks for taking my call. 0:27:40.180 --> 0:27:40.740 Yes, sir. 0:27:41.220 --> 0:27:45.340 Uh, I have a, uh, non-profit property I'm wanting to 0:27:45.380 --> 0:27:47.860 sell and give, and I'm going to give it, of course, 0:27:47.859 --> 0:27:53.260 to another non-profit or a 300 and 1C3. Is there any, uh, 0:27:53.300 --> 0:27:55.500 forms or anything I need to do, or is that 0:27:55.500 --> 0:27:58.260 taken care of at the closing of the sale? I'm 0:27:58.300 --> 0:28:00.180 I'm pretty green when it comes to stuff like this 0:28:00.180 --> 0:28:00.459 right here. 0:28:00.500 --> 0:28:01.459 Yeah. No problem. 0:28:01.500 --> 0:28:03.620 Uh, help me with something, though. You said you. I 0:28:03.619 --> 0:28:06.379 understand you want to sell it and give it, uh, 0:28:06.380 --> 0:28:09.500 the proceeds or give the property before the sale to 0:28:09.540 --> 0:28:12.340 a non-profit. We could talk about that. But you said 0:28:12.380 --> 0:28:15.139 it's it's already a non-profit property. What do you mean 0:28:15.140 --> 0:28:15.740 by that? 0:28:16.900 --> 0:28:20.540 Yeah, it's basically it's a non-profit, uh, that has went 0:28:20.540 --> 0:28:24.300 basically just dried up. And but with the property and 0:28:24.300 --> 0:28:26.340 the buildings are there, I'm going to sell that and 0:28:26.340 --> 0:28:30.700 take the proceeds and give it to a 501 C3 organization. 0:28:31.100 --> 0:28:31.699 Okay. 0:28:31.740 --> 0:28:37.340 All right. Uh, so that so it belongs essentially to 0:28:37.380 --> 0:28:41.580 the the nonprofit that you already had. Um, and you're 0:28:41.580 --> 0:28:43.500 closing that down, is that right? 0:28:45.020 --> 0:28:46.420 It's already closed down. Yes, sir. 0:28:46.580 --> 0:28:47.700 Okay. Got it. 0:28:47.740 --> 0:28:51.260 Yeah. Makes sense. Um, yeah, that's an interesting one. I 0:28:51.260 --> 0:28:55.780 would certainly, uh, talk to your CPA about that. Um, 0:28:56.460 --> 0:29:00.300 you know, because it's a little different in that it's already, 0:29:00.500 --> 0:29:06.740 you know, owned by, um, a 501 C3 under the IRS. So, 0:29:06.860 --> 0:29:10.060 you know, it's going to be need to be sold, um, 0:29:10.060 --> 0:29:12.860 you know, at a market value to avoid what's called 0:29:12.860 --> 0:29:15.940 private inurement. But I think in this case, you know, 0:29:16.020 --> 0:29:19.010 it's less of an issue because you're wanting to to 0:29:19.050 --> 0:29:22.010 give it away. Um, do you know of a non-profit 0:29:22.010 --> 0:29:24.450 who will take the property itself, or are you wanting 0:29:24.450 --> 0:29:27.730 to get it sold first? Um, you know, under the 0:29:27.730 --> 0:29:30.130 the nonprofit, and then just give the proceeds? 0:29:31.930 --> 0:29:34.970 Well, the the, uh, the church I'm wanting to give 0:29:34.970 --> 0:29:38.610 the proceeds to is a 500 1C3. And, you know, 0:29:38.650 --> 0:29:41.090 because I haven't I'm still just doing the legwork on 0:29:41.090 --> 0:29:44.730 all this right here. And like I said, I'm pretty green. Uh, 0:29:44.730 --> 0:29:46.570 but I've been doing a lot of research and trying 0:29:46.570 --> 0:29:49.010 to make sure I do all the right things, you know? 0:29:49.530 --> 0:29:50.450 Yes. Okay. 0:29:50.490 --> 0:29:53.130 Yeah. But the way it's going to go is already 0:29:53.130 --> 0:29:54.490 a 500 1C3. 0:29:54.810 --> 0:29:55.290 Yeah. 0:29:55.450 --> 0:29:58.730 And have you, uh, talked to the church about that, 0:29:58.730 --> 0:30:00.370 to let them know that that you want that to 0:30:00.370 --> 0:30:01.170 come their way? 0:30:02.410 --> 0:30:04.850 Yes. Well, I'm fixing to, but like I said, I 0:30:04.850 --> 0:30:06.330 want to get my ducks in a row before I 0:30:06.330 --> 0:30:07.850 actually announce it, you know. 0:30:08.050 --> 0:30:09.250 Got it. Yeah. 0:30:09.290 --> 0:30:12.250 Got it. Uh, yeah. So the normally what would happen 0:30:12.250 --> 0:30:16.770 is the nonprofit's board would would approve the dissolution. Maybe 0:30:16.770 --> 0:30:20.160 that's already happened and then the transfer of the property 0:30:20.160 --> 0:30:21.920 to the church. So you would want to have a 0:30:21.920 --> 0:30:25.040 a board meeting. You document the decision in the minutes 0:30:25.240 --> 0:30:28.800 and then pass a resolution. This sounds more formal than 0:30:28.800 --> 0:30:33.520 it is. Specifying the property transfer aligns with the mission. 0:30:33.880 --> 0:30:36.520 And then, um, you know, you could you could reach 0:30:36.520 --> 0:30:38.400 out to the church and let them know that that 0:30:38.400 --> 0:30:42.240 decision had been made by the nonprofit's board, and they 0:30:42.240 --> 0:30:46.840 can help you facilitate that direct transfer of that donated 0:30:46.880 --> 0:30:49.560 of that property that's being donated to the church via 0:30:49.600 --> 0:30:52.320 a deed transfer. You'd want to hire a real estate 0:30:52.320 --> 0:30:54.680 attorney to help you with that. So I think those 0:30:54.680 --> 0:30:56.720 are the steps. I've got to hit a break. Stay 0:30:56.720 --> 0:30:58.400 on the line. We'll finish up off the air. We'll 0:30:58.400 --> 0:31:06.440 be right back. I'm so thankful you're joining us today 0:31:06.440 --> 0:31:09.280 on Faith and Finance Live. I'm Rob West. Hey, just 0:31:09.280 --> 0:31:12.200 a quick reminder. Our team is away from the studio today, 0:31:12.200 --> 0:31:14.640 so don't call in. But in just a few moments, 0:31:14.640 --> 0:31:17.150 we're going to get to some questions that we lined 0:31:17.150 --> 0:31:20.469 up in advance that I know you'll find very interesting, 0:31:20.470 --> 0:31:23.110 but let me take a moment just to invite you 0:31:23.110 --> 0:31:25.830 first to be a supporter of this ministry here at 0:31:25.830 --> 0:31:28.670 Faith fi. You know, we bring you this broadcast every 0:31:28.710 --> 0:31:32.710 day as a listener supported ministry only because of your 0:31:32.750 --> 0:31:36.230 generous support. So maybe you listen regularly. Maybe you've been 0:31:36.230 --> 0:31:38.750 able to apply some of the wisdom from God's Word 0:31:38.750 --> 0:31:42.310 that you've heard in your financial life, or it's just 0:31:42.310 --> 0:31:45.270 help you to be that wise and faithful steward, and 0:31:45.310 --> 0:31:47.430 you'd like to be a part of our team. Well, 0:31:47.430 --> 0:31:49.910 one way you can do that is by investing in 0:31:49.910 --> 0:31:52.670 this work through a one time gift, or even by 0:31:52.670 --> 0:31:55.469 becoming a faith life partner. And this is a really 0:31:55.470 --> 0:31:58.990 important time between now and June the 30th, which is 0:31:58.990 --> 0:32:01.790 the end of our fiscal year for us to stay 0:32:01.790 --> 0:32:05.070 on track, finish out the budget year strong and prepare 0:32:05.230 --> 0:32:07.990 for another year of ministry. I just invite you to 0:32:08.150 --> 0:32:10.910 join us on this journey when you head to Faith. 0:32:11.230 --> 0:32:14.150 Com and click give a gift of any amount before 0:32:14.150 --> 0:32:17.910 June the 30th would be a big help. Again, that's faith. Philly.com. 0:32:18.030 --> 0:32:20.310 And just click give and let me say thank you 0:32:20.310 --> 0:32:24.670 in advance. Your gift will make a huge difference. All right, 0:32:24.670 --> 0:32:28.070 back to the phones we go. Let's see out to Oregon. Hi, Jane. 0:32:28.070 --> 0:32:29.550 Thanks for your patience. Go ahead. 0:32:29.950 --> 0:32:32.430 I'm confused about this, so I hope I don't confuse 0:32:32.430 --> 0:32:33.750 you in the process. 0:32:33.790 --> 0:32:34.310 Okay. 0:32:34.350 --> 0:32:40.230 But, yeah, um, I sell on eBay, and I haven't 0:32:40.230 --> 0:32:45.150 done my taxes for 2024 yet. And some couple of 0:32:45.150 --> 0:32:48.630 months ago, when I was starting to do them, eBay 0:32:48.670 --> 0:32:50.950 had a flag up there and I think it said 0:32:50.950 --> 0:32:54.390 something like, um, 1099 K is ready or something like 0:32:54.390 --> 0:32:57.310 that K or something. It may have had more letters 0:32:57.310 --> 0:33:00.990 after it. And so I click on that and it 0:33:00.990 --> 0:33:04.590 says I didn't make enough money to, to have that. 0:33:05.190 --> 0:33:07.670 What does that mean. Is that I mean it's obviously 0:33:07.670 --> 0:33:09.510 money that I made. Do I have to add that 0:33:09.510 --> 0:33:12.990 to my Social Security or do I not not have 0:33:13.140 --> 0:33:15.060 to add it. Is it going to be the same 0:33:15.060 --> 0:33:18.700 from now on? I, I went online and all they 0:33:18.700 --> 0:33:22.260 do is confuse me more. Um, but some things said 0:33:22.260 --> 0:33:26.260 there were different amounts or intimated that there were different 0:33:26.260 --> 0:33:31.020 amounts for different years to come. Can you clean that 0:33:31.020 --> 0:33:32.260 up a little bit for me? 0:33:32.540 --> 0:33:36.660 Yeah. Uh, so essentially, um, you know, it sounds like 0:33:36.700 --> 0:33:40.580 you're getting it's the 1099 K that would have your 0:33:40.580 --> 0:33:45.660 2024 sales. Yes. You did. And so, um, you know, 0:33:45.700 --> 0:33:49.220 they you had some sales activity, but it sounds like 0:33:49.220 --> 0:33:53.100 maybe you didn't meet the IRS threshold. Um, you know, 0:33:53.140 --> 0:33:56.580 they would normally issue a 1099 K if your gross 0:33:56.580 --> 0:34:01.940 sales exceed $5,000. Uh, would be the typical way that 0:34:01.940 --> 0:34:04.500 that would happen. Or if your state has a lower 0:34:04.660 --> 0:34:08.500 threshold threshold. So it sounded like sounds like their system 0:34:08.500 --> 0:34:13.330 flagged that you didn't qualify because your sales perhaps were 0:34:13.330 --> 0:34:18.370 below 5000 and and no other, you know, triggers applied. Um, 0:34:18.370 --> 0:34:22.370 but even without that 1099 K, you have to report 0:34:22.370 --> 0:34:29.170 all taxable income from eBay on your 2024 return. Um, and, 0:34:29.210 --> 0:34:32.009 you know, it's probably not a bad idea for you 0:34:32.010 --> 0:34:35.810 to have a professional look this over. Um, you know, 0:34:35.850 --> 0:34:39.770 if you're casually selling personal items like clearing out your closet, 0:34:39.770 --> 0:34:43.410 it's considered hobby income. Uh, you know, you would report 0:34:43.410 --> 0:34:46.969 your profits, um, you know, on your 1040 schedule, one 0:34:46.969 --> 0:34:50.410 is other income. Um, but, you know, if this is 0:34:50.410 --> 0:34:53.450 more of a business, um, you know, with intent to 0:34:53.489 --> 0:34:56.969 make a profit, then you'd report the the net income 0:34:56.969 --> 0:34:59.969 on schedule C, uh, but you do need to, you know, 0:35:00.010 --> 0:35:03.250 track your sales. You can use their hub, their seller's 0:35:03.290 --> 0:35:07.770 hub for that, and then download a transaction report, regardless 0:35:08.370 --> 0:35:10.800 of whether or not you get that 10.99 K. 0:35:12.560 --> 0:35:17.439 Okay. Okay. That's what I wanted to know. They were 0:35:17.440 --> 0:35:19.760 not clear on that when I was trying to find 0:35:19.760 --> 0:35:23.240 it on Irs.gov or whatever it is. 0:35:23.640 --> 0:35:26.040 Okay. Got it. Yeah. I mean, the the key is, 0:35:26.239 --> 0:35:28.480 you know, whenever you have income, you need to report it. 0:35:28.520 --> 0:35:31.319 It may or may not be taxable depending upon what 0:35:31.320 --> 0:35:34.160 you've earned and how what other income sources you have. 0:35:35.160 --> 0:35:38.120 Okay. Well, that's what I thought. But the way the 0:35:38.120 --> 0:35:41.920 way they've approached me, like you don't need it. I'm going. What? 0:35:42.640 --> 0:35:43.200 All right. 0:35:43.880 --> 0:35:46.239 Thank you so much. God bless you, Jane. Appreciate you 0:35:46.239 --> 0:35:49.200 being on the program. Uh. Let's see. To Tennessee. Patricia, 0:35:49.200 --> 0:35:50.120 how can I serve you? 0:35:50.719 --> 0:35:54.080 Um, I am taking early retirement, and I understand that 0:35:54.080 --> 0:35:58.800 I can only make $24,300 in earned income this year, 0:35:59.120 --> 0:36:01.200 and it looks like I'm going to go over that 0:36:01.200 --> 0:36:05.600 just a little bit. So I was wondering, how did 0:36:05.600 --> 0:36:11.150 they tax that? Did they tax it. Anything over the 24,300, 0:36:11.430 --> 0:36:13.750 or do they text the whole thing? 0:36:14.390 --> 0:36:17.150 Yeah. And so you're talking about Social Security? 0:36:18.190 --> 0:36:18.750 Yes. 0:36:19.110 --> 0:36:24.430 Yeah. Um, well, essentially what you're talking about there is, um, 0:36:24.469 --> 0:36:30.350 so there's the penalty that reduces your benefit temporarily. You 0:36:30.350 --> 0:36:32.469 will eventually get that back in the form of a 0:36:32.469 --> 0:36:36.149 higher check once you reach full retirement age. But they're 0:36:36.150 --> 0:36:39.270 going to reduce your benefit for one by $1 for 0:36:39.270 --> 0:36:43.230 every $2 you go over that threshold. Um, so that's 0:36:43.230 --> 0:36:46.109 the first issue is the penalty. And then there's the 0:36:46.110 --> 0:36:50.430 issue of whether or not your Social Security benefits are taxable. 0:36:50.590 --> 0:36:53.670 And that has to do with your total income. Which 0:36:53.710 --> 0:36:56.469 issue are you calling about today, the penalty or the 0:36:56.469 --> 0:36:57.790 taxes or both. 0:36:59.550 --> 0:37:00.870 I guess both. 0:37:01.030 --> 0:37:05.430 Yeah. Okay. Um, and so uh, so that, do you 0:37:05.430 --> 0:37:10.509 understand that issue around the, the temporary reduction in the benefit. 0:37:10.510 --> 0:37:14.350 So every dollar every $2 you go over that threshold 0:37:14.590 --> 0:37:16.750 you're going to they're going to reduce your benefit by 0:37:16.750 --> 0:37:20.710 a dollar. Um, now that threshold goes up in the 0:37:20.750 --> 0:37:23.669 in the last year before your full retirement age. But 0:37:23.670 --> 0:37:27.189 prior to that it's a dollar for every $2 you 0:37:27.190 --> 0:37:30.629 go over. But again, that's temporary because when you get 0:37:30.630 --> 0:37:34.270 to full retirement age, you will get that back in 0:37:34.270 --> 0:37:36.509 the form of a higher check until you've been repaid. 0:37:36.550 --> 0:37:39.430 And there's not a direct schedule for that. It's probably 0:37:39.430 --> 0:37:41.710 going to take ten years or more to be fully 0:37:41.710 --> 0:37:44.630 repaid back, but you will eventually get it. 0:37:46.150 --> 0:37:52.230 So they're they're going to take back anything over the 24,300. 0:37:52.430 --> 0:37:52.629 But. 0:37:52.670 --> 0:37:54.110 One, the whole 24. 0:37:54.510 --> 0:37:59.270 Yeah. So anything beyond that threshold, the 24,000, they're going 0:37:59.310 --> 0:38:02.150 to reduce your benefit by a dollar for every $2 0:38:02.150 --> 0:38:03.150 you go over. 0:38:03.910 --> 0:38:06.899 Okay. Did they take it out of the Social Security check? 0:38:06.900 --> 0:38:08.540 Or do I do that at the end of the 0:38:08.540 --> 0:38:09.860 year with taxes? 0:38:09.900 --> 0:38:13.180 No. They're going to reduce the check after they see 0:38:13.500 --> 0:38:16.620 what your total. You know, once you exceed that threshold 0:38:16.620 --> 0:38:19.540 and you're reporting your income and they're getting, you know, 0:38:19.580 --> 0:38:22.739 as they get that and they determine you've gone over, 0:38:22.780 --> 0:38:25.900 then they're going to start withholding it automatically from your check. 0:38:27.460 --> 0:38:30.940 Okay. Can I ask one more quick question about passive income? 0:38:31.100 --> 0:38:31.500 Sure. 0:38:32.260 --> 0:38:38.900 How is passive income. Added in with your social Security? 0:38:39.260 --> 0:38:41.020 Is it taxed at the same rate? 0:38:41.940 --> 0:38:45.259 Yes. Well, so, um, are you talking about in terms 0:38:45.260 --> 0:38:48.180 of the total taxes you'll pay? Uh, you know, the 0:38:48.180 --> 0:38:51.660 taxes on income, on Social Security have to do with 0:38:51.660 --> 0:38:55.500 something called combined income. And so combined income is your 0:38:55.500 --> 0:39:01.220 adjusted gross income from wages and investments plus nontaxable interest 0:39:01.500 --> 0:39:05.610 plus half of your Social Security benefits. Fits, um, so 0:39:05.810 --> 0:39:09.330 that then you total all that together. And that's your 0:39:09.530 --> 0:39:14.610 combined income that will ultimately determine what percentage, if any, 0:39:14.969 --> 0:39:19.130 of your Social Security is taxable. The most you'll have 0:39:19.170 --> 0:39:24.410 is up to 85%. Um, but in terms of passive income, um, 0:39:24.530 --> 0:39:29.650 you know, the, the nontaxable interest and the AGI, um, 0:39:29.690 --> 0:39:32.729 you know, passive income. Normally when somebody says that they're 0:39:32.730 --> 0:39:37.530 talking about rental income or dividends and interest or capital gains, um, 0:39:37.810 --> 0:39:41.290 you know, all of that, uh, increases your AGI. So 0:39:41.290 --> 0:39:42.690 it would be factored in. 0:39:44.530 --> 0:39:46.810 Okay. I appreciate your help. Thank you so much. 0:39:46.850 --> 0:39:49.170 All right. God bless you. Thanks for calling today. Uh, 0:39:49.170 --> 0:39:51.210 let's see out to Texas. Hi, Robert. How can I 0:39:51.210 --> 0:39:51.689 help you? 0:39:53.130 --> 0:39:57.410 Uh, yes, sir, I, oh, $47,000 on my house. It's 0:39:57.410 --> 0:40:02.410 probably worth around 75 to 80,000 now. Uh, my father 0:40:02.410 --> 0:40:06.000 in law is thinking about moving in with his wife, 0:40:06.120 --> 0:40:08.239 which is a weird situation, I know, but he only 0:40:08.239 --> 0:40:11.600 owes 24,000 on his house. But there's a lot of 0:40:11.600 --> 0:40:15.960 problems with it. If I sell, I make 40,000 before taxes. 0:40:15.960 --> 0:40:18.839 If I sell my house for 75, do I get 0:40:18.840 --> 0:40:22.640 taxed for the full 75 or just the 30,000 I 0:40:22.640 --> 0:40:25.319 make from what I owe on it? 0:40:25.600 --> 0:40:29.280 Yeah. So the the when you sell an appreciated asset 0:40:29.280 --> 0:40:34.240 like a home, there's capital gains tax. Um, and so 0:40:34.239 --> 0:40:36.840 the capital gain has nothing to do with whether or 0:40:36.840 --> 0:40:40.080 not there's a mortgage on the property. It has everything 0:40:40.120 --> 0:40:43.440 to do with how much you made on that home. 0:40:43.880 --> 0:40:47.800 And when you put that profit, that capital gain, together 0:40:48.040 --> 0:40:51.480 with all of your other income, then that will determine, 0:40:51.520 --> 0:40:53.200 you know, whether or not you have a long term 0:40:53.200 --> 0:40:56.200 capital gain and what the rate is. So are you 0:40:56.200 --> 0:40:58.200 going to make a profit on it? 0:40:58.920 --> 0:41:01.400 Um, I bought it for 50,000. Yes. 0:41:02.080 --> 0:41:05.080 Okay. And you think, uh. And did you put money 0:41:05.080 --> 0:41:07.840 into it to that improved the value of it over time? 0:41:08.560 --> 0:41:10.520 No, I haven't done anything to improve it. 0:41:10.880 --> 0:41:13.440 Okay. Um, and so you think you're going to make 0:41:13.440 --> 0:41:15.320 about $30,000 on it? 0:41:15.600 --> 0:41:18.920 Uh, in in theory, that would be a good goal. Yes. 0:41:19.440 --> 0:41:22.480 Okay. All right. So I think, you know, that's really 0:41:22.480 --> 0:41:25.200 the driver there. So you're going to put that 30 0:41:25.239 --> 0:41:26.960 let's say you make 30. You're going to put that 0:41:26.960 --> 0:41:30.680 together with your income. Do you file single or married. 0:41:31.200 --> 0:41:32.120 Um married. 0:41:32.960 --> 0:41:36.040 Okay. So if that gain plus all of your other 0:41:36.040 --> 0:41:41.400 income together taxable income minus deductions, if that goes over 0:41:41.400 --> 0:41:46.040 94,000 as married filing jointly, then you're going to pay 15% 0:41:46.040 --> 0:41:51.799 on that gain. Um, if you're under 94,000, then, um, 0:41:51.840 --> 0:41:54.200 you know, then you'll have zero. But that includes not 0:41:54.200 --> 0:41:57.000 only all your income, but the gain itself. I hope 0:41:57.000 --> 0:41:59.480 that helps. Robert, thanks for your call today, sir. God 0:41:59.480 --> 0:42:01.990 bless you. Before we wrap up today, what a great 0:42:01.989 --> 0:42:04.989 opportunity for me to remind you why we do what 0:42:04.989 --> 0:42:08.070 we do. You see, this program each day is focused 0:42:08.070 --> 0:42:12.270 on equipping you, providing you hope and encouragement, pointing you 0:42:12.270 --> 0:42:15.630 back to God's Word in this high calling of being 0:42:15.630 --> 0:42:18.029 a money manager for the King of Kings. You see, 0:42:18.030 --> 0:42:20.710 you and I are stewards. God owns it all. We 0:42:20.710 --> 0:42:25.750 don't have stewardship rights. We have stewardship responsibilities, and we 0:42:25.750 --> 0:42:28.190 want to get that right. So we look to God's Word, 0:42:28.230 --> 0:42:30.469 and we know that when we come together and share 0:42:30.469 --> 0:42:34.270 our stories and ask questions and renew our minds with 0:42:34.270 --> 0:42:37.509 the scriptures, well, we're going to eventually be on that 0:42:37.510 --> 0:42:41.670 path to hear one day. Well done, good and faithful servant. 0:42:41.830 --> 0:42:44.589 That's our goal, folks. We couldn't do this without the 0:42:44.590 --> 0:42:47.910 amazing team we have here. Amy and Dan and Taylor 0:42:47.910 --> 0:42:50.270 and Jim want to say a big thanks to everybody 0:42:50.270 --> 0:42:52.990 here at Faith by Faith and Finance Lives, a partnership 0:42:52.989 --> 0:42:55.589 between Moody Radio and Faith VI. And we'll see you 0:42:55.590 --> 0:42:56.270 next time.