1 00:00:08,600 --> 00:00:11,440 S1: One of the most important question about your savings is 2 00:00:11,440 --> 00:00:14,920 S1: and how much you have. But what it's really for. Hi, 3 00:00:14,960 --> 00:00:18,000 S1: I'm Rob West. We often talk about saving as a 4 00:00:18,000 --> 00:00:21,280 S1: financial skill, which it is, but Scripture invites us to 5 00:00:21,320 --> 00:00:25,079 S1: see saving as a purposeful act of stewardship. Today, we'll 6 00:00:25,079 --> 00:00:28,320 S1: explore why saving matters and how it fits into a 7 00:00:28,320 --> 00:00:31,080 S1: life of faith. And then we'll take your phone calls 8 00:00:31,080 --> 00:00:36,040 S1: at 800 525 7000. This is faith and finance. Live 9 00:00:36,080 --> 00:00:43,800 S1: biblical wisdom for your financial journey. Let's be honest, saving 10 00:00:43,800 --> 00:00:49,360 S1: rarely feels automatic. If it did, we wouldn't need reminders, spreadsheets, apps, 11 00:00:49,360 --> 00:00:53,160 S1: or the occasional sticky note taped to the fridge. Saving 12 00:00:53,159 --> 00:00:56,400 S1: forces us to resist the pull of the present in 13 00:00:56,400 --> 00:00:59,280 S1: favor of the future. And that kind of restraint has 14 00:00:59,390 --> 00:01:03,590 S1: always been in short supply. Cultural messaging pushes us toward 15 00:01:03,590 --> 00:01:08,630 S1: consumption and immediacy rather than toward patience and preparation. Many 16 00:01:08,670 --> 00:01:13,509 S1: households operate without margin one unexpected bill, one repair, one 17 00:01:13,510 --> 00:01:17,670 S1: medical issue or one job transition away from financial pressure. 18 00:01:17,870 --> 00:01:22,950 S1: That circumstance isn't merely about arithmetic. It's about posture. Saving 19 00:01:22,990 --> 00:01:25,630 S1: teaches us to slow down, to hold back, and to 20 00:01:25,670 --> 00:01:30,830 S1: make intentional decisions that put tomorrow, before today. It requires 21 00:01:30,830 --> 00:01:33,630 S1: us to say, not now, so we can say yes 22 00:01:33,630 --> 00:01:36,630 S1: when the time is right. The Bible affirms this kind 23 00:01:36,630 --> 00:01:41,830 S1: of foresight. Proverbs consistently praises diligence, prudence, and gathering in 24 00:01:41,830 --> 00:01:46,630 S1: season as wise, never as evidence of faithlessness. Saving doesn't 25 00:01:46,630 --> 00:01:50,830 S1: compete with God's provision. It's a response to his provision. 26 00:01:51,030 --> 00:01:55,350 S1: It reflects respect for the responsibilities he's entrusted to us. 27 00:01:55,670 --> 00:01:59,910 S1: Wisdom is never depicted as passive. It's active, thoughtful, and 28 00:01:59,910 --> 00:02:04,710 S1: future oriented. But Scripture also offers a guardrail. Our security 29 00:02:04,710 --> 00:02:09,109 S1: doesn't come from accumulated resources. It comes from the Lord himself. 30 00:02:09,350 --> 00:02:14,110 S1: When saving becomes a substitute for trust, it subtly forms 31 00:02:14,110 --> 00:02:18,429 S1: a rival foundation. God is our provider, not our portfolio. 32 00:02:18,669 --> 00:02:22,470 S1: Jesus makes this distinction in Luke 12 through the example 33 00:02:22,470 --> 00:02:25,870 S1: of the ravens. They don't store up, yet they are fed. 34 00:02:26,070 --> 00:02:29,830 S1: His point isn't that planning is wrong. It's that anxiety 35 00:02:29,830 --> 00:02:33,190 S1: is misplaced. God knows our needs and is faithful to 36 00:02:33,230 --> 00:02:38,910 S1: meet them. Saving, rightly understood, isn't self-reliance. It's stewardship under 37 00:02:38,910 --> 00:02:42,829 S1: God's care. Purpose is what keeps our saving from drifting 38 00:02:42,830 --> 00:02:47,870 S1: into hoarding or fear. Without purpose. Saving can feel like deprivation, 39 00:02:47,910 --> 00:02:51,790 S1: a long delay between desire and fulfillment. It's easy for 40 00:02:51,790 --> 00:02:55,710 S1: it to become fear management or worse, quiet accumulation that 41 00:02:55,710 --> 00:03:01,299 S1: promises safety. it can't deliver. But with purpose, saving becomes readiness. 42 00:03:01,340 --> 00:03:05,740 S1: It becomes preparation for storms without panic. Provision for family 43 00:03:05,740 --> 00:03:11,300 S1: without strain, and a foundation for generosity that doesn't require hesitation. 44 00:03:11,780 --> 00:03:15,700 S1: Saving also has a communal dimension. Scripture reminds us that 45 00:03:15,700 --> 00:03:19,180 S1: we are stewards, not owners. What we have is entrusted 46 00:03:19,180 --> 00:03:23,220 S1: for purposes that reach beyond us. A life without margin 47 00:03:23,220 --> 00:03:27,739 S1: leaves little flexibility to serve others, support ministry, or participate 48 00:03:27,740 --> 00:03:32,980 S1: in kingdom work. God designed generosity often requires readiness, and 49 00:03:32,980 --> 00:03:38,540 S1: readiness requires margin. Of course, Scripture doesn't prescribe a universal 50 00:03:38,540 --> 00:03:43,260 S1: percentage or target balance. Faithfulness isn't measured in dollar amounts. 51 00:03:43,540 --> 00:03:48,140 S1: Saving may look different across seasons and circumstances. For some, 52 00:03:48,180 --> 00:03:51,900 S1: especially those living near or below the poverty line, saving 53 00:03:51,940 --> 00:03:54,780 S1: may feel out of reach. And that struggle is real 54 00:03:54,780 --> 00:03:58,740 S1: in the midst of today's affordability concerns. For many others, 55 00:03:58,780 --> 00:04:02,380 S1: the challenge is less about income and more about intention 56 00:04:02,380 --> 00:04:06,060 S1: and restraint. Saving asks us to live below our means 57 00:04:06,060 --> 00:04:09,300 S1: in a world that encourages living at or above them. 58 00:04:09,300 --> 00:04:12,420 S1: And that leads us to a practical question if saving 59 00:04:12,420 --> 00:04:15,700 S1: is meant to be purposeful, then where we save and 60 00:04:15,700 --> 00:04:19,820 S1: what our saving support matters to. That's why Christian Community 61 00:04:19,820 --> 00:04:23,219 S1: Credit Union and Adelphi have come together to form Adelphi 62 00:04:23,260 --> 00:04:27,299 S1: Christian Banking, uniting two Christ centered institutions with a shared 63 00:04:27,300 --> 00:04:31,940 S1: mission to help believers steward God's resources wisely. Together, they're 64 00:04:31,940 --> 00:04:36,260 S1: expanding a Christian banking ecosystem designed to serve families at 65 00:04:36,260 --> 00:04:41,420 S1: every stage of their financial journey while channeling resources toward ministries, churches, 66 00:04:41,420 --> 00:04:46,339 S1: and gospel impact organizations around the world. Saving with purpose 67 00:04:46,380 --> 00:04:49,940 S1: isn't just about what we set aside. It's about aligning 68 00:04:49,940 --> 00:04:53,580 S1: our financial habits with values that reflect the Kingdom. When 69 00:04:53,580 --> 00:04:58,049 S1: your banking partner shares your Christian worldview, even ordinary financial 70 00:04:58,050 --> 00:05:02,130 S1: practices can point toward eternal priorities. So if you're looking 71 00:05:02,130 --> 00:05:05,490 S1: for a banking partner that shares your Christian values, take 72 00:05:05,490 --> 00:05:11,810 S1: a closer look at Adelphi Christian Banking. Learn more@faith.com. That's 73 00:05:11,810 --> 00:05:19,250 S1: faith banking. Alright, your calls are next at 800 525 7000. 74 00:05:19,290 --> 00:05:21,969 S1: I'm Rob West and this is Faith and Finance Live. 75 00:05:22,170 --> 00:05:23,089 S1: We'll be right back. 76 00:05:36,610 --> 00:05:39,490 S2: The opinions offered during this program represent the personal and 77 00:05:39,490 --> 00:05:43,530 S2: professional opinions of the participants given for informational purposes only. 78 00:05:43,730 --> 00:05:46,969 S2: Any information provided is not intended to replace advice from 79 00:05:46,970 --> 00:05:50,810 S2: a financial, medical, legal or other professional who understands your 80 00:05:50,810 --> 00:05:52,250 S2: specific situation. 81 00:06:01,120 --> 00:06:02,760 S1: Great to have you with us today on Faith and 82 00:06:02,760 --> 00:06:05,440 S1: Finance Live. I'm Rob West. Well, in just a moment, 83 00:06:05,440 --> 00:06:08,600 S1: we'll begin taking your phone calls today. That number 800 84 00:06:08,640 --> 00:06:14,640 S1: 525 7000 again, that's 800 525 7000. You know, we 85 00:06:14,640 --> 00:06:18,960 S1: started today by talking about saving on purpose. And really 86 00:06:18,960 --> 00:06:23,240 S1: saving is along with this idea of margin. You know, 87 00:06:23,279 --> 00:06:27,440 S1: as we look at the building blocks of financial wisdom 88 00:06:27,440 --> 00:06:30,320 S1: and money management, once we understand that God owns it 89 00:06:30,320 --> 00:06:32,800 S1: all and we're stewards and money is a good gift, 90 00:06:32,839 --> 00:06:36,839 S1: a tool to use for God's glory, then we need 91 00:06:36,880 --> 00:06:41,800 S1: basic principles and ideas that serve as the foundation to 92 00:06:41,839 --> 00:06:45,280 S1: our decision making. And we've shared that there really are 93 00:06:45,279 --> 00:06:48,799 S1: five core ideas that really we need to build on. 94 00:06:48,800 --> 00:06:51,960 S1: Everything in our financial life stems from these five. Its 95 00:06:51,960 --> 00:06:54,760 S1: first living within your means because that's the key to 96 00:06:54,800 --> 00:06:59,920 S1: every financial success. Avoiding debt because debt, debt, mortgages, the future. 97 00:07:00,480 --> 00:07:03,760 S1: We're pre committing our future spending based on the debt 98 00:07:03,760 --> 00:07:07,600 S1: that we're taking on today, that limits our flexibility. We 99 00:07:07,600 --> 00:07:09,760 S1: need to set long term goals because the longer term, 100 00:07:09,800 --> 00:07:12,920 S1: our perspective, the better the decision we can make today. 101 00:07:13,040 --> 00:07:15,360 S1: We need to give generously because that breaks the grip 102 00:07:15,360 --> 00:07:19,040 S1: of money over our lives. It allows us to participate 103 00:07:19,040 --> 00:07:22,080 S1: in God's redemptive work. It should be an overflow of 104 00:07:22,080 --> 00:07:25,160 S1: the grace that's extended to us. So we give joyfully 105 00:07:25,200 --> 00:07:29,560 S1: and cheerfully, not under compulsion, but one of those ideas. 106 00:07:29,560 --> 00:07:32,200 S1: The fifth one is that we're to have margin, and 107 00:07:32,200 --> 00:07:34,280 S1: that's the idea that we don't live right up to 108 00:07:34,320 --> 00:07:37,640 S1: the edge in every facet of our lives, our calendar. 109 00:07:37,640 --> 00:07:39,200 S1: You don't want to push that right to the edge. 110 00:07:39,200 --> 00:07:41,760 S1: It gives you no flexibility for those things that might 111 00:07:41,760 --> 00:07:44,440 S1: come up, and they will. And that's also true in 112 00:07:44,440 --> 00:07:47,040 S1: our financial lives. We can't live right up to the 113 00:07:47,040 --> 00:07:50,790 S1: edge because without margin, we're not able to accomplish our goals, 114 00:07:50,790 --> 00:07:53,750 S1: like starting a business or saving for the emergency fund 115 00:07:53,750 --> 00:07:58,670 S1: or giving more. This idea finds its roots in God's Word, 116 00:07:58,670 --> 00:08:04,030 S1: just like every wise financial principle that we find, it comes, namely, 117 00:08:04,030 --> 00:08:06,830 S1: I think, from the story of Ruth and Boaz, where 118 00:08:06,830 --> 00:08:10,310 S1: we see this clear picture of the power of margin 119 00:08:10,310 --> 00:08:12,950 S1: as widows. Ruth and her mother in law, Naomi, had 120 00:08:12,950 --> 00:08:16,510 S1: no income and no safety net. Their survival depended on 121 00:08:16,510 --> 00:08:19,670 S1: the kindness of others, and it was at the time 122 00:08:19,670 --> 00:08:22,590 S1: of the barley harvest, and Naomi knew that there would 123 00:08:22,590 --> 00:08:26,110 S1: be grain left in the fields. Now this wasn't coincidence. 124 00:08:26,110 --> 00:08:29,670 S1: It was because God had commanded his people to leave 125 00:08:29,670 --> 00:08:34,150 S1: margins so others could flourish. You see, we read this 126 00:08:34,150 --> 00:08:37,069 S1: right there in scripture in Leviticus 23. Let me read 127 00:08:37,070 --> 00:08:39,510 S1: it for you. When you reap the harvest of your land, 128 00:08:39,510 --> 00:08:41,670 S1: do not reap to the very edges of your field, 129 00:08:41,670 --> 00:08:45,550 S1: or gather the gleanings of your harvest. Leave them for 130 00:08:45,550 --> 00:08:49,390 S1: the poor and for the foreigner residing among you. I 131 00:08:49,429 --> 00:08:53,030 S1: am the Lord your God. You see, Boaz, one of 132 00:08:53,030 --> 00:08:57,510 S1: Naomi's relatives through her late husband, obeyed. He didn't maximize 133 00:08:57,510 --> 00:09:00,390 S1: every corner of his field. He left margin. And because 134 00:09:00,390 --> 00:09:03,230 S1: of that, Ruth and Naomi had enough to eat. But 135 00:09:03,230 --> 00:09:06,310 S1: God was doing more than just providing food. You see 136 00:09:06,309 --> 00:09:09,870 S1: that simple act of obedience set in motion a story 137 00:09:09,870 --> 00:09:15,350 S1: of redemption that not only led to Ruth's marriage to Boaz, 138 00:09:15,390 --> 00:09:17,870 S1: but to the lineage of King David. And you know 139 00:09:17,870 --> 00:09:21,670 S1: what came after that? Ultimately, the lineage that led to 140 00:09:21,710 --> 00:09:25,070 S1: Jesus Christ. So over and over again, we see this 141 00:09:25,070 --> 00:09:29,110 S1: idea in Scripture that margin isn't weakness, it's wisdom. Think 142 00:09:29,110 --> 00:09:31,950 S1: about that today as you think about every area of 143 00:09:31,950 --> 00:09:35,429 S1: your life and whether you're leaving any margin, it really 144 00:09:35,429 --> 00:09:39,230 S1: is key to good financial money management and so much more. 145 00:09:39,429 --> 00:09:41,270 S1: All right, we're going to dive into your questions today. 146 00:09:41,270 --> 00:09:43,830 S1: We've got a few lines open. So anything on your 147 00:09:43,830 --> 00:09:46,709 S1: mind today financially we'd love to tackle it. The number 148 00:09:46,780 --> 00:09:53,900 S1: 800 525 7800 525 7000. Let's begin in Cleveland today, Cathy. 149 00:09:53,940 --> 00:09:54,460 S1: Go ahead. 150 00:09:55,140 --> 00:09:58,100 S3: Hi. Thank you so much. Um, I do have a 151 00:09:58,100 --> 00:10:01,939 S3: financial advisor that I found through my, my job and 152 00:10:01,940 --> 00:10:05,220 S3: he's been helping me with my 401 and, uh, both 153 00:10:05,420 --> 00:10:08,500 S3: half of it's a Roth and half of it's traditional. Um, 154 00:10:08,540 --> 00:10:11,620 S3: and now I'm getting ready to retire in two months 155 00:10:11,940 --> 00:10:14,140 S3: and I'm in the middle of selling my house. So 156 00:10:14,140 --> 00:10:17,380 S3: it's under contract and it's closing in like 20 days. 157 00:10:17,700 --> 00:10:22,260 S3: And this advisor is advising me to take the 250,000 158 00:10:22,300 --> 00:10:26,260 S3: from my house sale and put it into a multi-year 159 00:10:26,300 --> 00:10:30,780 S3: guaranteed annuity. And it's a ten year annuity. And he 160 00:10:30,820 --> 00:10:33,780 S3: showed me a table where like year two, it's making 5% 161 00:10:33,780 --> 00:10:38,500 S3: interest and year three, 5.2. And, um, and he's saying 162 00:10:38,500 --> 00:10:42,420 S3: that if I do this, the interest of this annuity 163 00:10:42,420 --> 00:10:45,260 S3: will be enough to pay my rent because I don't 164 00:10:45,260 --> 00:10:47,780 S3: want the responsibility of a house anymore. I'm now living 165 00:10:47,780 --> 00:10:51,819 S3: in an apartment, but I feel a little fearful committing 166 00:10:51,820 --> 00:10:54,940 S3: this money for ten years. And then when I started 167 00:10:54,940 --> 00:10:58,540 S3: reading the brochure, I started reading that after one year, 168 00:10:58,540 --> 00:11:01,179 S3: you're allowed to take out small amounts without a fee, 169 00:11:01,380 --> 00:11:04,420 S3: which makes me think, you know, just to deduct any 170 00:11:04,420 --> 00:11:07,180 S3: of this is going to cause me problems. So I'm 171 00:11:07,220 --> 00:11:09,579 S3: not sure which direction to go right now. 172 00:11:10,100 --> 00:11:14,700 S1: Yeah, well, I think it's wise what you're describing here. And, 173 00:11:14,740 --> 00:11:17,220 S1: you know, first is to understand what this is. A 174 00:11:17,220 --> 00:11:20,819 S1: multi-year guaranteed annuity is basically a fixed rate contract where 175 00:11:20,820 --> 00:11:24,179 S1: your money is locked up for a set period, like 176 00:11:24,179 --> 00:11:26,940 S1: a CD, but with an insurance company. So there's a 177 00:11:26,940 --> 00:11:30,939 S1: guaranteed interest rate, typically no market risk. You're transferring that 178 00:11:30,940 --> 00:11:33,740 S1: risk to the insurance company. And so as long as 179 00:11:33,860 --> 00:11:37,260 S1: the insurance company is sound, then, uh, you know, you 180 00:11:37,260 --> 00:11:41,340 S1: have limited risk, but you also have limited access with 181 00:11:41,340 --> 00:11:44,100 S1: surrender charges. And so, you know, I think what you're 182 00:11:44,100 --> 00:11:46,610 S1: starting with is really one of the key ideas. Your 183 00:11:46,610 --> 00:11:50,370 S1: concern is valid in that if you're uncomfortable tying up 184 00:11:50,370 --> 00:11:53,850 S1: your money for ten years, that matters. An annuity with 185 00:11:53,850 --> 00:11:57,130 S1: a long surrender period limits your flexibility. It's going to 186 00:11:57,130 --> 00:11:59,010 S1: have penalties if you need the money, and it's hard 187 00:11:59,010 --> 00:12:02,890 S1: to unwind once you're in, but it doesn't mean it's 188 00:12:02,890 --> 00:12:07,089 S1: necessarily the bad thing in that it depends on what 189 00:12:07,090 --> 00:12:09,050 S1: your goals are. So I think we've got to start 190 00:12:09,050 --> 00:12:13,410 S1: by clarifying the goal for the 250,000 before choosing any 191 00:12:13,410 --> 00:12:16,890 S1: investment strategy or product. I think you need to ask, 192 00:12:16,890 --> 00:12:20,290 S1: is this for income now or later? Do you need 193 00:12:20,330 --> 00:12:24,690 S1: access to this money? And is your priority growth, income 194 00:12:24,690 --> 00:12:28,770 S1: or safety? So let's let's start with that and just 195 00:12:28,770 --> 00:12:31,810 S1: talk about how you're seeing this money when you think 196 00:12:31,850 --> 00:12:34,730 S1: you might need access to it. What you're looking for 197 00:12:34,730 --> 00:12:37,370 S1: in the way of income either now or in the future. 198 00:12:37,370 --> 00:12:40,329 S1: And what is your priority? Is it growth, income or safety? 199 00:12:40,370 --> 00:12:42,730 S1: And maybe it's it's all three, but which would be 200 00:12:42,730 --> 00:12:43,559 S1: the priority. 201 00:12:44,160 --> 00:12:46,960 S3: I think I'm just wanting that safety net to know 202 00:12:47,559 --> 00:12:50,280 S3: now that I don't have a house, that's my house. 203 00:12:50,280 --> 00:12:53,520 S3: I will at least have an income monthly that's going 204 00:12:53,520 --> 00:12:57,920 S3: to pay for shelter. So I'm looking for that consistent 205 00:12:57,920 --> 00:13:02,960 S3: income monthly that's going to pay for my apartment. And 206 00:13:02,960 --> 00:13:07,120 S3: then I will live off of my 401 K, my 207 00:13:07,120 --> 00:13:11,800 S3: Roth 41K and my savings account for my, my daily needs. 208 00:13:11,800 --> 00:13:14,680 S3: But my, my housing will be covered. 209 00:13:15,600 --> 00:13:18,840 S1: I got it. Yeah, yeah. So I think, uh, from 210 00:13:18,840 --> 00:13:24,319 S1: that standpoint, then the multi-year guaranteed annuity might be the 211 00:13:24,320 --> 00:13:27,520 S1: right thing. Uh, just because what I'm hearing in terms 212 00:13:27,520 --> 00:13:32,320 S1: of a priority is consistent, reliable income to cover the rent. 213 00:13:32,320 --> 00:13:36,400 S1: That's a good goal. We need to match the right tool, uh, 214 00:13:36,559 --> 00:13:40,400 S1: for it is the multi-year guaranteed annuity designed for that? 215 00:13:40,679 --> 00:13:43,960 S1: Not really. Not by itself. I mean, it provides a 216 00:13:43,960 --> 00:13:49,280 S1: guaranteed interest rate, but it doesn't automatically produce monthly income. 217 00:13:49,440 --> 00:13:52,160 S1: So you would need to withdraw the interest and possibly 218 00:13:52,160 --> 00:13:56,200 S1: the principal and manage the timing yourself. So let's do this. 219 00:13:56,480 --> 00:13:59,880 S1: When we come back, we'll talk about perhaps the other 220 00:13:59,880 --> 00:14:04,520 S1: tools you could use for consistent income that give you 221 00:14:04,520 --> 00:14:09,400 S1: more predictable income on a regular schedule, without the penalties 222 00:14:09,400 --> 00:14:12,240 S1: and the lock ups, so that you could achieve both 223 00:14:12,240 --> 00:14:16,160 S1: the peace of mind, the regular income, but still have 224 00:14:16,160 --> 00:14:19,400 S1: access to the money and perhaps not pay those surrender 225 00:14:19,400 --> 00:14:22,800 S1: charges that come with this insurance product. So we'll pick 226 00:14:22,800 --> 00:14:24,240 S1: it up on the other side of the break. Kathy, 227 00:14:24,240 --> 00:14:27,360 S1: you stay right there. More questions after this. Stay with us. 228 00:14:36,320 --> 00:14:38,000 S1: Great to have you with us today on Faith and 229 00:14:38,000 --> 00:14:40,360 S1: Finance Live. I'm Rob West. Before the break we were 230 00:14:40,470 --> 00:14:43,470 S1: talking to Cathy in Cleveland. She just sold her house. 231 00:14:43,470 --> 00:14:47,950 S1: She's getting a $250,000 in proceeds. Her financial advisor is 232 00:14:47,950 --> 00:14:51,670 S1: recommending she put it into a multi year guaranteed annuity 233 00:14:51,910 --> 00:14:55,430 S1: for ten years. Uh, she's concerned about tying her money 234 00:14:55,470 --> 00:14:58,910 S1: up for that long. She does have other retirement assets 235 00:14:58,910 --> 00:15:02,190 S1: that will cover her income and she's really wanting to. 236 00:15:02,270 --> 00:15:07,230 S1: If I understand correctly, Cathy, earmark this 250,000 separate from 237 00:15:07,230 --> 00:15:12,910 S1: the other retirement assets and generate reliable, predictable income with 238 00:15:12,910 --> 00:15:17,270 S1: low risk that can specifically be earmarked for your rent 239 00:15:17,270 --> 00:15:19,110 S1: for the rest of your life. Is that right? 240 00:15:19,470 --> 00:15:20,350 S3: That's right. 241 00:15:20,470 --> 00:15:23,710 S1: Yeah. And so I think the the one size fits 242 00:15:23,750 --> 00:15:28,830 S1: all 250,000 into a ten year multi year guaranteed annuity 243 00:15:28,830 --> 00:15:32,470 S1: is going to be too restrictive. It doesn't fully solve 244 00:15:32,470 --> 00:15:35,310 S1: the monthly rent need because that's going to start right away. 245 00:15:35,310 --> 00:15:40,510 S1: And it limits the adaptability as things change. And so 246 00:15:40,750 --> 00:15:44,070 S1: we need to match the tool to the job. And 247 00:15:44,070 --> 00:15:47,630 S1: the answer is probably a combination of these tools. One 248 00:15:47,630 --> 00:15:51,670 S1: tool would be what's called a single premium immediate annuity, 249 00:15:51,870 --> 00:15:54,830 S1: which you would put in, in this case 250,000. And 250 00:15:54,830 --> 00:15:57,710 S1: you'd immediately start getting an income, and that would last 251 00:15:57,710 --> 00:16:00,830 S1: for the rest of your life. Um, that would solve 252 00:16:00,830 --> 00:16:04,830 S1: for the safety and the predictable income. The lump sum 253 00:16:04,830 --> 00:16:07,630 S1: would not be accessible any longer, but you could count 254 00:16:07,630 --> 00:16:09,390 S1: on that income. And as long as it met your 255 00:16:09,390 --> 00:16:12,310 S1: need and there was an inflation rider in there, then, 256 00:16:12,350 --> 00:16:13,790 S1: you know, you would know that you have at least 257 00:16:13,790 --> 00:16:17,390 S1: that portion covered. Uh, the most flexible would probably be 258 00:16:17,390 --> 00:16:21,030 S1: a treasury and CD ladder. US treasuries from the US 259 00:16:21,030 --> 00:16:26,510 S1: government alongside CDs laddering them up maybe six, 12, you know, 260 00:16:26,550 --> 00:16:29,350 S1: 18 months and then just kind of stacking them. And 261 00:16:29,350 --> 00:16:31,790 S1: that way you have a portion coming due all the time, 262 00:16:31,790 --> 00:16:34,350 S1: but you've got, you know, enough in the way of 263 00:16:34,350 --> 00:16:37,270 S1: interest to be able to, to, uh, you know, pay 264 00:16:37,270 --> 00:16:41,980 S1: your rent and then, you know, the stability piece is 265 00:16:41,980 --> 00:16:45,020 S1: going to come from the longer term guaranteed rate with 266 00:16:45,020 --> 00:16:48,700 S1: the multi-year guaranteed annuity, but maybe a portion of it. 267 00:16:48,700 --> 00:16:53,180 S1: So like one option could be 100,000 in a Treasury 268 00:16:53,220 --> 00:16:56,780 S1: CD ladder, which gives you the flexibility and liquidity, maybe 269 00:16:56,780 --> 00:17:01,860 S1: 75,000 in a shorter term multiyear guaranteed annuity, maybe 3 270 00:17:01,860 --> 00:17:05,940 S1: to 5 years, not ten. And then maybe 75,000 in 271 00:17:05,980 --> 00:17:11,260 S1: a single premium immediate annuity with guaranteed monthly rent income. 272 00:17:11,260 --> 00:17:13,700 S1: And maybe the combination of those three gives you the 273 00:17:13,700 --> 00:17:18,300 S1: sweet spot of safety, immediate income, but also some liquidity 274 00:17:18,300 --> 00:17:21,459 S1: in case things change down the road. So that's the 275 00:17:21,460 --> 00:17:23,500 S1: kind of thing that I'd love for you perhaps to 276 00:17:23,540 --> 00:17:27,500 S1: walk through with either this advisor or with a second opinion, 277 00:17:27,500 --> 00:17:30,820 S1: perhaps a certified Kingdom advisor there in Cleveland. But give 278 00:17:30,859 --> 00:17:32,020 S1: me your thoughts on all that. 279 00:17:32,619 --> 00:17:36,140 S3: I like that I've never been a person that likes 280 00:17:36,140 --> 00:17:39,449 S3: to put all my eggs in one basket. So, um, 281 00:17:39,570 --> 00:17:42,850 S3: having it, having it between 2 or 3 different options, 282 00:17:42,850 --> 00:17:46,770 S3: knowing that if something is lacking in one area, hopefully 283 00:17:46,770 --> 00:17:48,890 S3: the other two will make it up. Plus, I like 284 00:17:48,930 --> 00:17:51,730 S3: being able to have access to some of that money 285 00:17:51,730 --> 00:17:54,170 S3: because I don't know what's coming in the future. And 286 00:17:54,369 --> 00:17:57,250 S3: there could be I mean, I could end up in, um, 287 00:17:57,290 --> 00:17:59,930 S3: assisted living and actually need those funds, you know? 288 00:17:59,970 --> 00:18:01,889 S1: That's right, that's right. Yeah. So you don't want to 289 00:18:01,890 --> 00:18:03,850 S1: lock that up. Well, I think you've got a couple 290 00:18:03,890 --> 00:18:06,490 S1: of options here. Perhaps you go back to this advisor 291 00:18:06,490 --> 00:18:09,890 S1: and say I'm uncomfortable with the ten year lockup and 292 00:18:09,890 --> 00:18:12,090 S1: here's why I want more flexibility. I know I can 293 00:18:12,090 --> 00:18:14,690 S1: get to a portion of this, uh, you know, after 294 00:18:14,690 --> 00:18:17,930 S1: the first year and maybe a certain percentage each year 295 00:18:17,930 --> 00:18:20,250 S1: without having surrender charges. But what if I need the 296 00:18:20,250 --> 00:18:22,250 S1: whole thing? I just don't know what the future holds. 297 00:18:22,250 --> 00:18:25,490 S1: So I'm uncomfortable with that. And what if we consider 298 00:18:25,490 --> 00:18:28,690 S1: or could you design a plan that uses a combination 299 00:18:28,690 --> 00:18:33,010 S1: of a multi-year guaranteed annuity alongside maybe a single premium 300 00:18:33,050 --> 00:18:37,570 S1: immediate annuity and maybe the CD treasury ladder that I described. 301 00:18:37,570 --> 00:18:40,170 S1: I think the second is you get a second opinion, 302 00:18:40,170 --> 00:18:42,969 S1: which is never a bad idea, especially with a decision 303 00:18:42,970 --> 00:18:46,530 S1: this large, and talk through another approach with a certified 304 00:18:46,530 --> 00:18:48,970 S1: Kingdom advisor there in Ohio. And you could find one 305 00:18:48,970 --> 00:18:53,250 S1: at find a.com. There's some great ones there in Cleveland. 306 00:18:53,250 --> 00:18:55,690 S1: I was just there the other day doing an event 307 00:18:55,690 --> 00:18:59,570 S1: at Cuyahoga Valley Christian Academy. So, um, I know there's 308 00:18:59,570 --> 00:19:02,130 S1: some wonderful certified Kingdom advisors in the area that could 309 00:19:02,130 --> 00:19:03,050 S1: serve you really well. 310 00:19:03,570 --> 00:19:05,729 S3: Okay. Thank you for your help. I appreciate it. 311 00:19:05,730 --> 00:19:08,409 S1: All right. Cathy, Lord bless you. Let's go to Michigan. Mary, 312 00:19:08,410 --> 00:19:09,210 S1: how can I help? 313 00:19:11,970 --> 00:19:16,250 S4: Um, I'm calling to see if you can tell me. 314 00:19:16,290 --> 00:19:18,490 S4: So I can tell a young man how he can 315 00:19:18,530 --> 00:19:22,690 S4: gain credit. He has no credit. And he wants to 316 00:19:22,690 --> 00:19:23,930 S4: get credit. 317 00:19:24,530 --> 00:19:26,490 S1: Yes, a great question. 318 00:19:26,850 --> 00:19:30,330 S4: So you won't hear some interference. I was driving, I'm 319 00:19:30,330 --> 00:19:31,170 S4: going to stop. 320 00:19:31,450 --> 00:19:34,800 S1: Okay. No problem. You be careful, Mary. Uh, yeah. Let's 321 00:19:34,800 --> 00:19:37,240 S1: start with the basics. If you have no credit, the 322 00:19:37,280 --> 00:19:41,600 S1: goal is simple. Open an account, use it lightly, and 323 00:19:41,600 --> 00:19:44,760 S1: pay it on time. Every time you see credit is 324 00:19:44,760 --> 00:19:51,400 S1: built on payment history, time, and responsible usage. Now, the 325 00:19:51,400 --> 00:19:53,520 S1: last thing that we would want is for somebody to 326 00:19:53,560 --> 00:19:56,960 S1: go into debt in the name of building credit. That's 327 00:19:56,960 --> 00:19:59,840 S1: not the goal. But if we can use the right 328 00:19:59,880 --> 00:20:04,399 S1: tool to begin to establish credit and build the right disciplines, 329 00:20:04,560 --> 00:20:09,119 S1: that's ideal. So that can come from opening, let's say, uh, 330 00:20:09,320 --> 00:20:13,240 S1: you know, an credit card, an unsecured credit card, only 331 00:20:13,240 --> 00:20:17,040 S1: charging a budgeted item every month. It might be a 332 00:20:17,200 --> 00:20:21,160 S1: very small recurring charge that maybe is a subscription that's 333 00:20:21,160 --> 00:20:24,199 S1: planned for. It's in the budget, the money's there, it 334 00:20:24,240 --> 00:20:26,920 S1: hits the account, you pay it in full, and that 335 00:20:26,920 --> 00:20:29,960 S1: just happens every month. Well, that's going to show, uh, 336 00:20:30,280 --> 00:20:35,200 S1: establish a habit of on time regular payments. And even 337 00:20:35,240 --> 00:20:37,800 S1: though we don't have a lot of history, that will 338 00:20:37,800 --> 00:20:40,760 S1: come over time, but we need to start the clock 339 00:20:40,800 --> 00:20:46,080 S1: going and we need to show responsible usage. Um, often 340 00:20:46,080 --> 00:20:48,960 S1: the most safe way to go about this is something 341 00:20:48,960 --> 00:20:53,200 S1: called a secured credit card. So this gentleman would put 342 00:20:53,200 --> 00:20:57,639 S1: a deposit down with the institution issuing the card. You know, 343 00:20:57,680 --> 00:21:03,320 S1: maybe that's city or Capital One, maybe 3 to $500. 344 00:21:03,440 --> 00:21:07,040 S1: That becomes your credit limit. You use it again for 345 00:21:07,040 --> 00:21:11,399 S1: small budgeted purchases like gas or gas or groceries or 346 00:21:11,760 --> 00:21:14,080 S1: a subscription, and then you pay it off in full 347 00:21:14,080 --> 00:21:17,199 S1: every month. That's the safest because you're never able to 348 00:21:17,240 --> 00:21:19,560 S1: take on debt, because you can't exceed the amount on 349 00:21:19,560 --> 00:21:23,760 S1: deposit and it's the quickest path. Um, another option would 350 00:21:23,760 --> 00:21:26,719 S1: be if he could become an authorized user on someone 351 00:21:26,720 --> 00:21:30,840 S1: else's card. A parent or a trusted person. However their 352 00:21:30,950 --> 00:21:33,670 S1: credit history, good or bad, would flow to him. So 353 00:21:33,670 --> 00:21:35,830 S1: you got to be careful there. And then the third 354 00:21:35,830 --> 00:21:39,470 S1: option is something called a credit builder loan offered by 355 00:21:39,470 --> 00:21:43,270 S1: banks and credit unions. They hold the account while you 356 00:21:43,310 --> 00:21:46,590 S1: make the payments. It builds payment history and then you 357 00:21:46,590 --> 00:21:50,430 S1: get the money back. So those are ultimately, um, you know, 358 00:21:50,470 --> 00:21:53,030 S1: I think the options to look at, but the key 359 00:21:53,030 --> 00:21:56,830 S1: is consistent payment over time, pay that balance in full 360 00:21:56,830 --> 00:21:59,510 S1: every month and don't miss a payment. Thanks for your call. 361 00:21:59,510 --> 00:22:08,550 S1: We'll be right back. Thanks for joining us today on 362 00:22:08,550 --> 00:22:11,389 S1: Faith and Finance Live. Coming up in the next segment today, 363 00:22:11,390 --> 00:22:14,870 S1: Bob Dole stops by market, uh, soaring today. The Dow 364 00:22:14,869 --> 00:22:20,629 S1: Jones up 631 points. S&P 500 up 75. The Nasdaq 365 00:22:20,670 --> 00:22:25,310 S1: up 300. Uh all three major indexes up about uh 366 00:22:25,310 --> 00:22:29,109 S1: one and a third percentage points today. That's a pretty 367 00:22:29,109 --> 00:22:32,740 S1: big move after President Trump saying the U.S. and Iran 368 00:22:32,740 --> 00:22:37,580 S1: have held productive talks and that we're, quote, very intent 369 00:22:37,580 --> 00:22:42,139 S1: on making a deal with Iran that does not include 370 00:22:42,140 --> 00:22:46,100 S1: nuclear weapons of any kind. The market liking that. Could 371 00:22:46,100 --> 00:22:49,419 S1: that mean this war is short lived and we resume 372 00:22:49,420 --> 00:22:53,660 S1: the oil flowing and perhaps bring about a level of 373 00:22:53,660 --> 00:22:55,659 S1: peace and safety in the Middle East that we haven't 374 00:22:55,660 --> 00:22:59,180 S1: had before? Well, that certainly sounds good. We'll see how 375 00:22:59,180 --> 00:23:02,820 S1: that plays out. But the market reacting positively today. Uh, 376 00:23:02,820 --> 00:23:04,979 S1: of course on that news, Bob Dole will weigh in 377 00:23:04,980 --> 00:23:07,340 S1: on all of it in the next segment. Stay with 378 00:23:07,340 --> 00:23:09,700 S1: us for that. We are taking your calls and questions 379 00:23:09,700 --> 00:23:15,340 S1: today at 800 525 7000. Let's head back to the phones. Canton, Georgia. Beth. 380 00:23:15,380 --> 00:23:15,899 S1: Go ahead. 381 00:23:17,140 --> 00:23:21,260 S5: Hi. Um, I'm a longtime listener. Way back to Larry Burkett. 382 00:23:21,300 --> 00:23:25,700 S5: He was he was. Yeah. Started all this and God 383 00:23:25,700 --> 00:23:30,379 S5: bless him. Um, and God bless you too, for hanging 384 00:23:30,380 --> 00:23:34,180 S5: in there and picking up where, um, everybody is left off. 385 00:23:34,660 --> 00:23:36,020 S1: So thank you, Beth, I agree. 386 00:23:37,780 --> 00:23:41,020 S5: My question today is I know that you can contribute 387 00:23:41,020 --> 00:23:46,460 S5: to a retirement account up until April of 15 to 388 00:23:46,460 --> 00:23:50,580 S5: account for last year's taxes. Um, and that's what I'm 389 00:23:50,580 --> 00:23:52,899 S5: going to do. But also I would like to do 390 00:23:52,900 --> 00:23:57,820 S5: a conversion from a 401 K and to a Roth 391 00:23:58,260 --> 00:24:00,660 S5: can that, can I do that and still have it 392 00:24:00,700 --> 00:24:02,940 S5: count for, uh, 20, 25? 393 00:24:04,140 --> 00:24:07,820 S1: Uh, no. A Roth conversion does not follow the April 394 00:24:07,820 --> 00:24:12,260 S1: 15th rule. It's taxed in the calendar year. The conversion happens, 395 00:24:12,300 --> 00:24:17,740 S1: not the filing year. Uh, so, you know, the contributions 396 00:24:17,740 --> 00:24:20,659 S1: can count for the prior year up until April 15th. 397 00:24:20,859 --> 00:24:24,820 S1: Roth conversions count only in the year that you do them, unfortunately. 398 00:24:25,740 --> 00:24:29,010 S5: Yeah, unfortunately. Thank you so much, I appreciate it. 399 00:24:29,410 --> 00:24:32,530 S1: All right. And thank you for mentioning the late Larry Burkett. Beth, 400 00:24:32,530 --> 00:24:35,770 S1: I couldn't agree more. The impact that Larry had continues 401 00:24:35,770 --> 00:24:39,210 S1: to this day, and we certainly are delighted to continue 402 00:24:39,210 --> 00:24:42,490 S1: in his footsteps and encouraging God's people to live as stewards. 403 00:24:42,490 --> 00:24:46,250 S1: So thanks for your call today. Let's go to Brookfield, Illinois. Cathy. 404 00:24:46,290 --> 00:24:46,810 S1: Go ahead. 405 00:24:47,810 --> 00:24:51,970 S6: Yes. I've been wanting to know. I'm a widow and, um, 406 00:24:52,210 --> 00:24:56,250 S6: I've lived in the house over 50 years, and if 407 00:24:56,250 --> 00:25:03,330 S6: I sell my house, my husband died about four years ago. So, um, 408 00:25:03,730 --> 00:25:09,410 S6: I know you can deduct about $250,000 or something like 409 00:25:09,410 --> 00:25:11,209 S6: that in the sale of the house. And if my 410 00:25:11,210 --> 00:25:14,490 S6: husband was alive, I could get $250. But I didn't 411 00:25:14,490 --> 00:25:17,369 S6: know if since I lived in the house 50 years 412 00:25:17,369 --> 00:25:21,129 S6: and he lived in the house really over 50 years, 413 00:25:21,609 --> 00:25:25,010 S6: would I still be able to write off my husband's portion? 414 00:25:25,490 --> 00:25:27,690 S1: Mhm. Yeah. Well, I'm so sorry to hear about your 415 00:25:27,690 --> 00:25:31,129 S1: husband's passing. Um, a couple of things here, and you 416 00:25:31,170 --> 00:25:34,410 S1: probably are going to need to talk to a professional, 417 00:25:34,450 --> 00:25:37,810 S1: a CPA, to calculate the cost basis. But let me 418 00:25:37,810 --> 00:25:40,370 S1: let me talk you through this here. So what you're 419 00:25:40,369 --> 00:25:44,970 S1: referring to is the capital gains exclusion on a primary residence, 420 00:25:45,210 --> 00:25:49,490 S1: and you get up to 250,000 in gains that can 421 00:25:49,490 --> 00:25:53,010 S1: be excluded from capital gains. If you're a single filer, 422 00:25:53,210 --> 00:25:55,850 S1: a half $1 million in gains, not the selling price, 423 00:25:55,850 --> 00:25:58,570 S1: but the gain. Half $1 million can be excluded for 424 00:25:58,570 --> 00:26:01,609 S1: a married couple. Now, since your husband passed away four 425 00:26:01,609 --> 00:26:07,010 S1: years ago, the $500,000 exclusion only applies for two years 426 00:26:07,010 --> 00:26:10,129 S1: after your spouse's death. After that, it reverts to the 427 00:26:10,130 --> 00:26:15,730 S1: 250,000 exclusion as a single filer. So yes, you can 428 00:26:15,730 --> 00:26:21,649 S1: still exclude up to 250,000 of gain. Now what there 429 00:26:21,650 --> 00:26:24,480 S1: may be, though, if you need more than that, there 430 00:26:24,480 --> 00:26:28,040 S1: may be a step up in basis. At the time 431 00:26:28,080 --> 00:26:30,600 S1: of his death for his portion. And that's really going 432 00:26:30,640 --> 00:26:35,160 S1: to come down to your state. And just the the 433 00:26:35,200 --> 00:26:39,600 S1: laws with regard to how the property was held. Um, 434 00:26:39,640 --> 00:26:44,040 S1: do you believe you'll have more than 250,000 in gain 435 00:26:44,040 --> 00:26:46,400 S1: the difference between the selling price and what you originally 436 00:26:46,400 --> 00:26:47,160 S1: paid for it. 437 00:26:47,840 --> 00:26:49,359 S6: Yeah, that would be more. 438 00:26:49,880 --> 00:26:52,960 S1: Okay. Yeah. So I think, uh, you're going to want 439 00:26:52,960 --> 00:26:57,199 S1: to get with the CPA to understand what is the, 440 00:26:57,200 --> 00:27:01,960 S1: the true basis and the gain. Um, because you're going 441 00:27:02,000 --> 00:27:06,760 S1: to no doubt get the 250,000 exclusion. But what you 442 00:27:06,760 --> 00:27:09,760 S1: want to know is, is there any portion of this 443 00:27:09,760 --> 00:27:13,960 S1: that could be stepped up based on your husband's passing? Uh, 444 00:27:13,960 --> 00:27:17,719 S1: for his portion or not? And the answer may be no, 445 00:27:17,720 --> 00:27:20,040 S1: but if there is an opportunity there, and then you 446 00:27:20,040 --> 00:27:22,000 S1: want to be able to take full advantage of that. 447 00:27:22,040 --> 00:27:23,030 S1: Does that make sense? 448 00:27:23,630 --> 00:27:27,070 S6: Yeah. Now, if I buy another property and invest some 449 00:27:27,070 --> 00:27:29,270 S6: of that money, would there be any? 450 00:27:30,190 --> 00:27:35,070 S1: No, that would only apply to a rental or investment property. 451 00:27:35,230 --> 00:27:37,790 S1: If you had a rental or investment property that you 452 00:27:37,830 --> 00:27:41,470 S1: were selling, as long as you identify that next rental 453 00:27:41,470 --> 00:27:44,229 S1: or investment property in 90 days and close on it 454 00:27:44,230 --> 00:27:47,870 S1: in 180 days, you can push the capital gain forward 455 00:27:47,869 --> 00:27:51,350 S1: through something called a, a 1031 exchange. But when we're 456 00:27:51,350 --> 00:27:56,230 S1: talking about a primary residence, uh, there is no effect 457 00:27:56,390 --> 00:27:59,109 S1: on what you do with the money after the sale. 458 00:27:59,510 --> 00:28:02,630 S1: So the capital gain is either you either have one 459 00:28:02,630 --> 00:28:06,830 S1: or you don't based on whether you have more gain 460 00:28:06,830 --> 00:28:10,350 S1: than the than the exclusion. And what you do with 461 00:28:10,350 --> 00:28:13,229 S1: that money, whether you put it into another property that 462 00:28:13,230 --> 00:28:15,430 S1: you're going to move into, or you spend it, or 463 00:28:15,430 --> 00:28:17,950 S1: you save it or you invest, it has no bearing 464 00:28:18,190 --> 00:28:21,110 S1: on the capital gain tax that's owed. 465 00:28:21,950 --> 00:28:25,550 S6: Okay, okay. I just wasn't sure. And, I mean, I 466 00:28:25,550 --> 00:28:27,270 S6: still have a lot of things I need to do 467 00:28:27,310 --> 00:28:29,710 S6: to the house, which I haven't done a lot of 468 00:28:29,710 --> 00:28:33,990 S6: stuff already. Um, to ever get it ready for sale. 469 00:28:34,030 --> 00:28:36,550 S6: I mean, if I, I know if I pass away, 470 00:28:36,590 --> 00:28:38,830 S6: my kids can inherit and they don't have to worry 471 00:28:38,830 --> 00:28:39,550 S6: about this. 472 00:28:40,190 --> 00:28:43,870 S1: Um, that's exactly right. Because they would as inheritors have 473 00:28:43,870 --> 00:28:48,150 S1: a step up in basis. Uh, that would make the, 474 00:28:48,270 --> 00:28:51,750 S1: the basis, the market value as of the date of 475 00:28:51,750 --> 00:28:54,510 S1: your death. And if they turn around and sold that 476 00:28:54,550 --> 00:28:58,470 S1: home relatively soon, they would have no taxes because there 477 00:28:58,470 --> 00:29:01,510 S1: would be no gain. Whereas in your case, you're having 478 00:29:01,510 --> 00:29:06,270 S1: to go back to your original purchase price. Um, now again, 479 00:29:06,670 --> 00:29:11,830 S1: your husband share in the state of Illinois may allow 480 00:29:12,350 --> 00:29:14,870 S1: his share of the home to receive the step up 481 00:29:14,870 --> 00:29:17,590 S1: to the fair market value as of his date of 482 00:29:17,590 --> 00:29:19,830 S1: death four years ago. That's what you'd need to check 483 00:29:19,900 --> 00:29:22,540 S1: with with your CPA to see whether that's the case. 484 00:29:22,540 --> 00:29:27,700 S1: If so, that would help. Uh, you know, because potentially, 485 00:29:27,700 --> 00:29:30,220 S1: let's say I'm just going to, for example, you purchased 486 00:29:30,220 --> 00:29:34,740 S1: it for 100,000. It was worth 300,000 at his passing. 487 00:29:34,900 --> 00:29:38,580 S1: His half, you know, could be stepped up to, uh, 488 00:29:38,620 --> 00:29:43,780 S1: you know, 150,000, um, which would put the new basis 489 00:29:43,780 --> 00:29:47,060 S1: at 200 in my example. So, you know, that's why 490 00:29:47,060 --> 00:29:50,540 S1: you're going to want to understand that you automatically get 491 00:29:50,540 --> 00:29:53,140 S1: the 250 and exclusion. We just want to know whether 492 00:29:53,140 --> 00:29:56,780 S1: there's any step up in basis for his portion. Since 493 00:29:57,020 --> 00:30:00,020 S1: you're beyond the two year window where you could still 494 00:30:00,020 --> 00:30:03,100 S1: take advantage of the half million dollar exclusion that comes 495 00:30:03,100 --> 00:30:05,020 S1: to married couples, if that makes sense. 496 00:30:06,300 --> 00:30:08,620 S6: Thank you that I've been wondering about that. And I 497 00:30:08,620 --> 00:30:10,980 S6: just didn't know if the fact that I've been in 498 00:30:10,980 --> 00:30:14,380 S6: the house for 50 years and he was alive, everything 499 00:30:14,380 --> 00:30:15,820 S6: but four years. 500 00:30:16,380 --> 00:30:19,860 S1: Yeah, I wish I wish that was the case. Unfortunately, 501 00:30:19,860 --> 00:30:24,820 S1: two years beyond his passing. You now are able to 502 00:30:24,860 --> 00:30:28,020 S1: enjoy the the the single file or exclusion, which is 503 00:30:28,020 --> 00:30:32,740 S1: 250,000 and no more. But let's check on whether or 504 00:30:32,740 --> 00:30:37,100 S1: not the basis was adjusted based on the market values 505 00:30:37,100 --> 00:30:39,060 S1: of the date of his death. And and that's where 506 00:30:39,060 --> 00:30:41,820 S1: your CPA will be helpful. So in either case, it's 507 00:30:41,820 --> 00:30:45,420 S1: going to dramatically decrease the amount that you owe. Because 508 00:30:45,420 --> 00:30:49,180 S1: if nothing else, at least the first 250,000 in gains 509 00:30:49,180 --> 00:30:52,260 S1: will be excluded. Cathy, thanks for your call today. We 510 00:30:52,260 --> 00:30:54,860 S1: appreciate you being on the program. Lord bless you. Uh, 511 00:30:54,860 --> 00:30:56,580 S1: we're going to take a quick break. We'll come back. 512 00:30:56,580 --> 00:30:58,340 S1: Bob Dole will stop by. We'll try to get to 513 00:30:58,380 --> 00:31:07,900 S1: more calls as well. We'll be right back. Well the 514 00:31:07,900 --> 00:31:11,500 S1: market's been green across the board today. All the major 515 00:31:11,500 --> 00:31:15,220 S1: indexes finishing more than 1% higher today on the news 516 00:31:15,220 --> 00:31:19,730 S1: that President Trump telling CNBC this morning, we are very 517 00:31:19,730 --> 00:31:22,410 S1: intent on making a deal. And then he announced on 518 00:31:22,410 --> 00:31:26,490 S1: Truth Social they'd be suspending, uh, any kind of major 519 00:31:26,490 --> 00:31:30,690 S1: attack on the energy grid, uh, as a result of 520 00:31:30,890 --> 00:31:34,530 S1: some really productive talks with Iran. And Bob, that's, uh, 521 00:31:34,530 --> 00:31:36,850 S1: that's welcome news for the markets, huh? 522 00:31:37,290 --> 00:31:40,290 S7: Sure is lots of green on the screen as investors 523 00:31:40,290 --> 00:31:45,290 S7: are saying, uh, fewer bombs, um, lower oil, uh, better economy, 524 00:31:45,290 --> 00:31:46,410 S7: better stock market. 525 00:31:46,730 --> 00:31:50,490 S1: Yeah, exactly. Right. Uh, Bob, if in fact, we saw, 526 00:31:50,530 --> 00:31:54,810 S1: you know, this quickly de-escalate, the war ends, oil settles 527 00:31:54,810 --> 00:31:58,090 S1: back down. Uh, we're still in a pretty good spot 528 00:31:58,130 --> 00:32:00,490 S1: to just based on everything you're seeing, right? 529 00:32:01,090 --> 00:32:05,330 S7: Yeah. I couch it this way. Rob. The market only declining. 530 00:32:05,330 --> 00:32:09,650 S7: Call it 5% from the high. In light of $100 oil. 531 00:32:09,650 --> 00:32:13,810 S7: And the closed Strait of Hormuz was basically saying, look, 532 00:32:13,850 --> 00:32:16,600 S7: this is not going to last very long. and therefore 533 00:32:16,600 --> 00:32:20,400 S7: we don't need to worry about the lasting impacts of 534 00:32:20,440 --> 00:32:24,280 S7: $100 oil. And that's why the market didn't go down more. 535 00:32:24,520 --> 00:32:30,280 S7: So yes, beyond the war, assuming this ends soon, that 536 00:32:30,280 --> 00:32:34,440 S7: is nearly $100 oil. The world can go back to 537 00:32:34,480 --> 00:32:37,240 S7: what it was before this. And that was pretty good 538 00:32:37,240 --> 00:32:42,360 S7: shape both the U.S. and non-U.S., um, economic growth reasonably good. 539 00:32:42,360 --> 00:32:44,360 S7: And that's why stocks were doing so well prior to 540 00:32:44,400 --> 00:32:44,880 S7: all this. 541 00:32:45,240 --> 00:32:48,960 S1: Yeah, obviously one big factor, especially given the fact that 542 00:32:48,960 --> 00:32:52,360 S1: we start started the year thinking that rates were coming down. 543 00:32:52,520 --> 00:32:55,120 S1: One big factor is where is the fed on all 544 00:32:55,160 --> 00:32:59,000 S1: of this, especially given these recent inflation numbers. Uh, I 545 00:32:59,000 --> 00:33:01,240 S1: don't know that we've talked since the last meeting. What 546 00:33:01,240 --> 00:33:03,840 S1: did you take away from their all important comments? 547 00:33:04,240 --> 00:33:07,320 S7: I think their comments were basically saying we're on hold. 548 00:33:07,640 --> 00:33:09,880 S7: We don't know what the future brings. We never know. 549 00:33:09,880 --> 00:33:13,200 S7: But we really don't know this time, uh, given the 550 00:33:13,200 --> 00:33:15,280 S7: war and the price of oil. So we're just going 551 00:33:15,320 --> 00:33:18,000 S7: to sit on our hands for a while. I would 552 00:33:18,000 --> 00:33:21,240 S7: point out as background, Rob, that we've had now five 553 00:33:21,280 --> 00:33:27,280 S7: years in a row where inflation has exceeded the Fed's forecast. Um, 554 00:33:27,280 --> 00:33:29,520 S7: which I think tells us something. It tells us that 555 00:33:29,520 --> 00:33:34,200 S7: inflation is unlikely to go back to that desired 2% 556 00:33:34,200 --> 00:33:37,240 S7: mark that the fed has set without a recession. We're 557 00:33:37,240 --> 00:33:41,200 S7: stuck with, I'll call it around 3% inflation instead of two. 558 00:33:41,680 --> 00:33:46,480 S1: Yeah. If the president's choice for fed chairman were to 559 00:33:46,520 --> 00:33:48,400 S1: get in, and I know there's a bit of a 560 00:33:48,440 --> 00:33:52,640 S1: hiccup there while the investigation into Powell goes on, um, 561 00:33:52,680 --> 00:33:56,080 S1: how much influence does he have alone on where interest 562 00:33:56,080 --> 00:33:57,080 S1: rates go from here. 563 00:33:57,400 --> 00:34:01,400 S7: Right. Question. This is a set of governors. They're not slouches. 564 00:34:01,400 --> 00:34:05,360 S7: They're not rookies. These are experienced people who've been around 565 00:34:05,360 --> 00:34:08,880 S7: for a while. And of course, the fed chair, uh, 566 00:34:08,880 --> 00:34:12,040 S7: is the chair. And the chair always has an influence. 567 00:34:12,040 --> 00:34:14,830 S7: Maybe a well, he has only one vote. He does 568 00:34:14,830 --> 00:34:17,030 S7: have a bigger voice than the rest, so they'll listen 569 00:34:17,030 --> 00:34:19,430 S7: to him, but they have independent minds. So I don't 570 00:34:19,430 --> 00:34:21,310 S7: know that the world changes a whole lot with a 571 00:34:21,310 --> 00:34:22,230 S7: new fed chair. 572 00:34:22,270 --> 00:34:25,109 S1: Yeah. Bob, you've been talking about some of the key 573 00:34:25,150 --> 00:34:29,109 S1: drivers of this economy right now at least. Of course, 574 00:34:29,110 --> 00:34:32,350 S1: we talked about the war. We've talked extensively about AI 575 00:34:32,350 --> 00:34:35,270 S1: and where that's headed and whether it's overvalued. But certainly 576 00:34:35,270 --> 00:34:37,750 S1: it's going to have an impact on our economy. But 577 00:34:37,750 --> 00:34:40,230 S1: private credit is another one. And you you had a 578 00:34:40,230 --> 00:34:42,390 S1: comment on that in your deliberations this week. 579 00:34:42,870 --> 00:34:47,430 S7: Yeah. Our view is private credit problems are real. But 580 00:34:47,430 --> 00:34:51,709 S7: to this point and we expect continuing to be isolated 581 00:34:51,710 --> 00:34:55,750 S7: one here, one there not a systemic problem. Now if 582 00:34:55,750 --> 00:34:58,589 S7: the economy turns around, goes down and we have a recession, 583 00:34:58,590 --> 00:35:01,430 S7: there'll be a lot more private credit problems with credit problems, 584 00:35:01,430 --> 00:35:04,830 S7: lots of places. But independent of that, we think that, 585 00:35:04,870 --> 00:35:09,190 S7: for example, the big high quality banks, because so little 586 00:35:09,190 --> 00:35:12,710 S7: lending took place in those banks in the last cycle, 587 00:35:13,390 --> 00:35:15,710 S7: that those balance sheets are in pretty good shape, so 588 00:35:16,150 --> 00:35:19,910 S7: we wouldn't. Damn all the financials, as it were, because 589 00:35:19,910 --> 00:35:21,350 S7: of private credit problems. 590 00:35:21,670 --> 00:35:24,870 S1: Yeah. Very good. And then last question, Bob. Obviously a 591 00:35:24,870 --> 00:35:28,070 S1: lot of attention being paid to the bond yields. And. 592 00:35:28,190 --> 00:35:30,390 S1: Just to remind our listeners what impact that has on 593 00:35:30,390 --> 00:35:30,950 S1: all this. 594 00:35:31,430 --> 00:35:34,950 S7: Yeah. So so the ten year Treasury, which is the 595 00:35:34,950 --> 00:35:39,070 S7: benchmark yield, our forecast coming into the year and still is, 596 00:35:39,430 --> 00:35:44,589 S7: that will gravitate between high threes and mid fours. And 597 00:35:44,590 --> 00:35:48,069 S7: at 435 today for 40. Last week we're closer to 598 00:35:48,110 --> 00:35:51,310 S7: the high end making bonds a little bit more attractive 599 00:35:51,310 --> 00:35:56,430 S7: at these higher yields. The yield on a bond depends 600 00:35:56,430 --> 00:35:58,750 S7: on lots of things. On a government bond it has 601 00:35:58,750 --> 00:36:02,230 S7: a lot to do with what's the inflation rate going forward. 602 00:36:02,469 --> 00:36:06,270 S7: And it is among the reasons why we've been cautious 603 00:36:06,270 --> 00:36:09,550 S7: on bonds. Because inflation is a little higher than a 604 00:36:09,590 --> 00:36:10,540 S7: lot of people think. 605 00:36:10,980 --> 00:36:13,700 S1: Yeah. Very good. All right, sir, we appreciate your time 606 00:36:13,700 --> 00:36:15,220 S1: as always. Thanks for being here. 607 00:36:15,460 --> 00:36:16,260 S7: Have a great week. 608 00:36:16,540 --> 00:36:19,100 S1: All right. That's Bob Dahl. He's CEO and CIO of 609 00:36:19,100 --> 00:36:23,100 S1: Crossmark global. Sign up for his deliberations weekly commentary. It'll 610 00:36:23,140 --> 00:36:25,620 S1: be delivered to your inbox each week. I rely on 611 00:36:25,620 --> 00:36:28,140 S1: it for my snapshot of the markets. Just a quick 612 00:36:28,140 --> 00:36:33,020 S1: two pager. You'll find it free at crossmark global.com. All right, 613 00:36:33,100 --> 00:36:35,740 S1: down to Fort Lauderdale, my hometown. Mary. Go ahead. 614 00:36:37,020 --> 00:36:40,420 S8: Hi there Rob. Thank you for taking my call. My 615 00:36:40,420 --> 00:36:44,900 S8: question is, as a land owner, I want to sell 616 00:36:44,940 --> 00:36:48,540 S8: some property, some land, but I also want to know 617 00:36:48,540 --> 00:36:52,540 S8: if I have to pay taxes on that. And if so, 618 00:36:52,580 --> 00:36:57,940 S8: how do I go about figuring out what portion is payable? 619 00:36:58,540 --> 00:37:01,819 S1: It's a great question. So you generally pay taxes on 620 00:37:01,820 --> 00:37:04,859 S1: the profit or the gain from the sale, not the 621 00:37:04,860 --> 00:37:07,580 S1: full amount you receive. So here's how it works. The 622 00:37:07,580 --> 00:37:12,540 S1: IRS looks at your selling price minus your cost, which 623 00:37:12,540 --> 00:37:16,220 S1: is what you paid for it, plus any improvements. So 624 00:37:16,260 --> 00:37:19,739 S1: with land, if you, you know, improved it, you maybe added, 625 00:37:19,940 --> 00:37:23,540 S1: you know, some infrastructure or something that improved the value, 626 00:37:23,660 --> 00:37:26,899 S1: you'd be able to add that to your cost. And 627 00:37:26,900 --> 00:37:31,819 S1: so selling price minus your cost equals your taxable gain. 628 00:37:32,180 --> 00:37:35,299 S1: So let's say you sell it for 100,000 and you 629 00:37:35,300 --> 00:37:39,780 S1: originally paid 40,000, you would have a gain of 60,000. 630 00:37:39,820 --> 00:37:44,140 S1: And that's the amount potentially subject to capital gains tax, 631 00:37:44,140 --> 00:37:47,940 S1: not the full 100,000 in my example. Now what kind 632 00:37:47,940 --> 00:37:52,259 S1: of tax. Well a capital gain is not an income tax. 633 00:37:52,420 --> 00:37:54,739 S1: It's either a long term gain. If you've owned the 634 00:37:54,739 --> 00:37:57,299 S1: property for more than a year or it's a short 635 00:37:57,340 --> 00:37:59,580 S1: term gain if you've owned it less than a year, 636 00:37:59,860 --> 00:38:01,380 S1: did you own it more than a year? 637 00:38:02,500 --> 00:38:04,060 S8: Well, it was inherited. 638 00:38:04,420 --> 00:38:05,420 S9: So yes. Okay. 639 00:38:05,420 --> 00:38:08,570 S8: It's been in the family for 50 years. Hundred years. Almost. 640 00:38:08,850 --> 00:38:10,609 S1: Okay. And when did you inherit it? 641 00:38:12,850 --> 00:38:17,570 S8: Um, probably like. Five years ago. 642 00:38:18,010 --> 00:38:22,210 S1: Okay. So that's helpful. Because generally what happens is when 643 00:38:22,210 --> 00:38:25,410 S1: you inherit a piece of an asset, in this case, 644 00:38:25,410 --> 00:38:28,169 S1: a piece of land, you get what's called a step 645 00:38:28,210 --> 00:38:32,450 S1: up in basis. So regardless of what the person paid 646 00:38:32,450 --> 00:38:35,770 S1: for it, that passed it on to you. Paid for it. 647 00:38:35,810 --> 00:38:38,930 S1: Your new cost basis is the market value of that 648 00:38:38,930 --> 00:38:43,250 S1: property as of the date of their death. So if 649 00:38:43,290 --> 00:38:46,250 S1: they pass away, the property goes to you. The new 650 00:38:46,250 --> 00:38:50,009 S1: cost basis is whatever it was worth. And you could 651 00:38:50,050 --> 00:38:53,690 S1: back into this by using some professionals. Whatever the property 652 00:38:53,690 --> 00:38:56,010 S1: was worth as of the date of death around five 653 00:38:56,010 --> 00:39:00,050 S1: years ago. That's your new cost basis. So your capital 654 00:39:00,050 --> 00:39:03,410 S1: gain is only going to be the increase in value 655 00:39:03,410 --> 00:39:05,930 S1: of the property between the date of death and the 656 00:39:05,930 --> 00:39:09,959 S1: date you sell it roughly five years later. And so 657 00:39:10,000 --> 00:39:14,279 S1: the difference between those two numbers is your gain. And 658 00:39:14,280 --> 00:39:17,320 S1: then that will be a long term capital gain because 659 00:39:17,320 --> 00:39:20,440 S1: it's more than a year that it's been yours. And 660 00:39:20,440 --> 00:39:24,920 S1: currently the long term capital gains rates are either zero 661 00:39:24,960 --> 00:39:29,680 S1: 15 or 20%. Do you file as a single filer 662 00:39:29,680 --> 00:39:31,279 S1: or married filing jointly? 663 00:39:32,400 --> 00:39:35,080 S8: Well, I think this is over my head. So I 664 00:39:35,080 --> 00:39:39,240 S8: probably would need to get a an accountant. 665 00:39:39,680 --> 00:39:40,719 S9: That's never a bad idea. 666 00:39:42,000 --> 00:39:45,440 S8: Which one would I get? Like a real estate or attorney? 667 00:39:45,560 --> 00:39:45,840 S9: No. 668 00:39:45,880 --> 00:39:49,560 S1: You'd want a CPA, a certified public accountant who could 669 00:39:49,560 --> 00:39:52,200 S1: help you prepare your taxes. So what they're going to 670 00:39:52,200 --> 00:39:54,680 S1: do is they're going to ask for the closing statement. 671 00:39:54,680 --> 00:39:57,240 S1: They're going to determine what did you sell it for. 672 00:39:57,600 --> 00:40:00,520 S1: And then they're going to help you find the way 673 00:40:00,520 --> 00:40:03,439 S1: to establish the market value as of the date of 674 00:40:03,440 --> 00:40:06,760 S1: death of the person that then passed it to you 675 00:40:07,080 --> 00:40:10,400 S1: by way of inheritance. And the difference between those two 676 00:40:10,440 --> 00:40:12,839 S1: is the gain. And then they're going to be able 677 00:40:12,840 --> 00:40:15,640 S1: to tell you based on that gain plus your other 678 00:40:15,640 --> 00:40:19,800 S1: combined income, whether or not you owe any capital gains. 679 00:40:19,800 --> 00:40:23,880 S1: And it's likely going to be either 0% capital gains rate, 680 00:40:23,880 --> 00:40:27,239 S1: which would be nothing or 15%. But they would have 681 00:40:27,239 --> 00:40:28,160 S1: to tell you that. 682 00:40:29,400 --> 00:40:33,440 S8: Okay. So I definitely would need to have assistance with 683 00:40:33,440 --> 00:40:34,560 S8: trying to file it. 684 00:40:34,840 --> 00:40:37,239 S9: Yeah. So you just want to tell your CPA. 685 00:40:37,400 --> 00:40:40,439 S1: You have a sale of a property coming up and 686 00:40:40,440 --> 00:40:44,120 S1: you're going to need help calculating the capital gain that's owed. 687 00:40:45,640 --> 00:40:47,680 S8: Alrighty. Thank you so very much. Have a. 688 00:40:47,680 --> 00:40:48,160 S9: Great day. 689 00:40:48,680 --> 00:40:51,319 S1: And you too. God bless you. Thanks for calling. Uh, 690 00:40:51,320 --> 00:40:53,600 S1: let's see, we'll finish today in Illinois. Shirley, I have 691 00:40:53,600 --> 00:40:55,080 S1: just about a minute left. Go ahead. 692 00:40:56,120 --> 00:41:00,400 S10: Uh, real quickly, I have, uh, I left a job. Um, 693 00:41:00,400 --> 00:41:02,879 S10: I had a 401 K, which I transferred to my 694 00:41:02,880 --> 00:41:06,589 S10: new job. I also didn't realize I had like a 695 00:41:06,590 --> 00:41:09,790 S10: small pension from there. And this is going back a 696 00:41:09,790 --> 00:41:12,950 S10: couple of years, actually. So I'm wondering if one, it's 697 00:41:12,950 --> 00:41:15,830 S10: too late for me to, um, get that money and 698 00:41:15,830 --> 00:41:18,830 S10: do something with it. And would you recommend rolling it 699 00:41:18,830 --> 00:41:22,430 S10: into my current 401 K or maybe doing a Roth IRA? 700 00:41:23,310 --> 00:41:26,670 S1: Got it. Yes. So you, uh, have the paperwork on it? 701 00:41:26,710 --> 00:41:27,910 S1: How did you discover it? 702 00:41:28,790 --> 00:41:30,630 S10: Um, they sent me something in the mail. 703 00:41:31,150 --> 00:41:34,150 S1: Okay. Yeah. It's almost never too late. So if you 704 00:41:34,190 --> 00:41:37,390 S1: worked for an employer and earned a pension, then that 705 00:41:37,390 --> 00:41:40,150 S1: money is still yours. As long as you're what's called vested, 706 00:41:40,150 --> 00:41:42,310 S1: you went beyond the period of time you had to 707 00:41:42,350 --> 00:41:45,550 S1: work for them to, to reach a point where you're vested, 708 00:41:45,550 --> 00:41:48,509 S1: which means you now have access to the money. It 709 00:41:48,510 --> 00:41:51,629 S1: doesn't just disappear because time has passed. So the first 710 00:41:51,630 --> 00:41:55,350 S1: step is to track it down. Uh, contact your former 711 00:41:55,350 --> 00:41:59,350 S1: employer's HR department or the plan administrator. You can check 712 00:41:59,350 --> 00:42:02,710 S1: old statements if you've got one to find out who 713 00:42:02,750 --> 00:42:05,630 S1: that is and call them to find out where it is. 714 00:42:05,910 --> 00:42:09,589 S1: And if it's a small pension, you usually have choices 715 00:42:09,590 --> 00:42:12,710 S1: such as do you want a lump sum payout or 716 00:42:12,710 --> 00:42:16,190 S1: do you want a monthly lifetime income, or do you 717 00:42:16,190 --> 00:42:19,549 S1: want to roll it into an IRA? But they'll be 718 00:42:19,550 --> 00:42:21,509 S1: able to tell you what options you have if you 719 00:42:21,510 --> 00:42:23,670 S1: have the option. I would love for you to roll 720 00:42:23,670 --> 00:42:27,430 S1: it into an IRA, and then you could invest it 721 00:42:27,430 --> 00:42:29,990 S1: so that it could grow and you could access it, 722 00:42:30,230 --> 00:42:33,149 S1: you know, in retirement as another source of income. But 723 00:42:33,150 --> 00:42:34,910 S1: the first step is to get in touch with the 724 00:42:34,910 --> 00:42:38,670 S1: plan administrator, get the details on what you've got, and 725 00:42:38,670 --> 00:42:42,070 S1: then you could connect with an advisor to get some counsel. 726 00:42:42,190 --> 00:42:45,669 S1: I would encourage you to go to find ak.com. Thanks 727 00:42:45,670 --> 00:42:48,069 S1: for your call, Shirley. Faith and Finance Live is a 728 00:42:48,070 --> 00:42:51,790 S1: partnership between Moody Radio and Faith fi. Big thanks to Taylor, Sarah, 729 00:42:51,830 --> 00:42:53,870 S1: Josh and Dan. Hey, if you want to support our 730 00:42:53,870 --> 00:42:58,270 S1: listener supported ministry, go to faith.com/give. Come back and join 731 00:42:58,270 --> 00:42:59,470 S1: us tomorrow. We'll see you then.