1 00:00:04,200 --> 00:00:07,160 S1: The following program was pre-recorded so our phone lines are 2 00:00:07,160 --> 00:00:08,000 S1: not open. 3 00:00:08,280 --> 00:00:11,240 S2: We're deep into December and the window for smart year 4 00:00:11,240 --> 00:00:14,800 S2: end tax planning is closing quickly. Hi, I'm Rob West. 5 00:00:15,080 --> 00:00:17,920 S2: Taxes may not top your Christmas list, but they're a 6 00:00:17,920 --> 00:00:21,520 S2: reminder that God has provided and wise planning helps us 7 00:00:21,520 --> 00:00:25,080 S2: to honor him with what he's entrusted to us. Kevin 8 00:00:25,079 --> 00:00:27,120 S2: Cross is here today to walk us through the most 9 00:00:27,120 --> 00:00:30,280 S2: important moves to make before December 31st, as we head 10 00:00:30,280 --> 00:00:33,879 S2: into 2026. Then we have some great calls lined up. 11 00:00:33,880 --> 00:00:37,640 S2: But we won't be taking your calls today because we're pre-recorded. 12 00:00:37,800 --> 00:00:41,200 S2: This is faith and finance. Live. Biblical wisdom for your 13 00:00:41,200 --> 00:00:47,559 S2: financial journey. Well, my good friend Kevin Cross is an 14 00:00:47,560 --> 00:00:51,440 S2: experienced CPA who has helped countless families navigate their taxes 15 00:00:51,440 --> 00:00:54,200 S2: with confidence. So there's no one better to guide us 16 00:00:54,200 --> 00:00:56,720 S2: as we approach year end. Kevin, great to have you back. 17 00:00:56,720 --> 00:00:57,920 S3: So good to be back. Rob. 18 00:00:58,120 --> 00:01:02,190 S2: Kevin, let's begin with charitable giving, something that's always important 19 00:01:02,190 --> 00:01:05,150 S2: to our listeners. What should they be thinking about between 20 00:01:05,150 --> 00:01:06,709 S2: now and December 31st? 21 00:01:06,750 --> 00:01:10,190 S3: Well, they did increase the standard deduction okay. And of 22 00:01:10,230 --> 00:01:12,230 S3: course the salt limitation. You know, now we get to 23 00:01:12,270 --> 00:01:16,950 S3: deduct $40,000 in state and local taxes. Okay. Now you're 24 00:01:16,950 --> 00:01:20,509 S3: probably going to be able to itemize though. So whatever 25 00:01:20,510 --> 00:01:23,870 S3: you give this year you're probably going to file that 26 00:01:23,870 --> 00:01:26,990 S3: old proverbial long form. So go ahead and make some 27 00:01:26,990 --> 00:01:31,070 S3: contributions this year by December 31st. And say you say, well, 28 00:01:31,069 --> 00:01:33,030 S3: I'm never going to make it. My standard deduction is 29 00:01:33,030 --> 00:01:37,150 S3: still too high. Let's bundle them. Let's do two years worth. 30 00:01:37,510 --> 00:01:39,910 S3: And if you don't have an organization to give to 31 00:01:39,950 --> 00:01:43,709 S3: right now, open a donor advised fund. We always recommend that. 32 00:01:43,709 --> 00:01:47,229 S3: And that is the most fun fund you can ever have, 33 00:01:47,310 --> 00:01:49,670 S3: because it's a foot race to put as much money 34 00:01:49,670 --> 00:01:52,630 S3: in there as possible. You can also have it invested 35 00:01:52,630 --> 00:01:55,910 S3: short term so you can grow it. Yeah. And with 36 00:01:55,910 --> 00:02:00,260 S3: this new Trump child tax savings account. Yep. Guess what 37 00:02:00,260 --> 00:02:05,100 S3: you can donate from your donor advised fund into that. 38 00:02:05,260 --> 00:02:05,820 S2: Really? 39 00:02:05,860 --> 00:02:07,780 S3: What? Oh, what? 40 00:02:07,820 --> 00:02:08,540 S2: I didn't know that. 41 00:02:08,580 --> 00:02:10,180 S3: Yeah, I know, it's so brand new. Well, we can't 42 00:02:10,180 --> 00:02:12,579 S3: do anything until 2026, but if you have a kiddo 43 00:02:12,780 --> 00:02:18,580 S3: or grandkid 25 born this year, 2025 until 2028. Okay, um, 44 00:02:18,580 --> 00:02:21,420 S3: the president's given a thousand bucks. The kiddo has a 45 00:02:21,419 --> 00:02:24,220 S3: nice little bank account open. Yeah, and you can contribute 46 00:02:24,220 --> 00:02:27,100 S3: up to $5,000 a year. Here's the kind of the 47 00:02:27,100 --> 00:02:29,739 S3: cool little tickers that people aren't telling you yet about. 48 00:02:29,900 --> 00:02:34,300 S3: You can give 2500 from your business tax free. So 49 00:02:34,300 --> 00:02:37,380 S3: the kiddo gets the 2500. The business gets the write 50 00:02:37,419 --> 00:02:41,380 S3: off for 2500, which is mind boggling. The phones will 51 00:02:41,419 --> 00:02:43,500 S3: be starting to ring and be like, did you? Is 52 00:02:43,500 --> 00:02:46,340 S3: it really tax deductible for my kid or my grandkid? Yeah. 53 00:02:46,340 --> 00:02:47,940 S3: We need to make an accountable plan. We need to 54 00:02:47,940 --> 00:02:50,260 S3: do all the paperwork for the business. But the other 55 00:02:50,260 --> 00:02:52,700 S3: thing for the rest of us who might want to 56 00:02:52,700 --> 00:02:56,139 S3: open a donor advised fund with, say, ten, $20,000, and 57 00:02:56,139 --> 00:02:58,820 S3: we want to give some of that money not just 58 00:02:58,820 --> 00:03:01,540 S3: to our favorite charities, but now we can give it 59 00:03:01,540 --> 00:03:04,540 S3: to our well, our grandkids might be our favorite charity, 60 00:03:04,540 --> 00:03:07,100 S3: but they shouldn't be more important than our favorite charities, right? 61 00:03:07,139 --> 00:03:08,299 S3: But now we can give to them. 62 00:03:08,300 --> 00:03:12,540 S2: So donor advised fund to trump child account. 63 00:03:12,580 --> 00:03:14,900 S3: Starting next year starting in 2026. You can't do anything 64 00:03:14,940 --> 00:03:15,700 S3: until then. 65 00:03:15,740 --> 00:03:16,459 S2: That's amazing. 66 00:03:16,500 --> 00:03:19,260 S3: It's amazing. So everybody start googling that and you'll be like, wow. 67 00:03:19,620 --> 00:03:22,420 S3: So that's one of the qualified organizations that can give. 68 00:03:22,780 --> 00:03:24,740 S3: It's nuts. It's wonderful. 69 00:03:24,900 --> 00:03:27,260 S2: Wild. Yeah. Well you're going to want to open that today. 70 00:03:27,300 --> 00:03:29,859 S2: I call it a charitable checking account. As Kevin said, 71 00:03:29,860 --> 00:03:33,380 S2: it's a fabulous way to give, and I would encourage 72 00:03:33,380 --> 00:03:35,740 S2: you to do it at the National Christian Foundation. That way, 73 00:03:35,740 --> 00:03:37,820 S2: you'll ensure that you'll always be able to give to 74 00:03:37,860 --> 00:03:41,260 S2: the Christian ministries and charities that you're interested in. Just 75 00:03:41,260 --> 00:03:47,260 S2: go to faith. Let's talk quickly about the qualified charitable distribution. Kevin, 76 00:03:47,300 --> 00:03:52,020 S2: it's it always amazes me how people 70.5 or older 77 00:03:52,220 --> 00:03:54,860 S2: don't know about this incredible tool. 78 00:03:54,900 --> 00:03:57,770 S3: It is true. Russ Crosson, who you know, was with 79 00:03:57,770 --> 00:04:00,810 S3: Ron Blum Company, we spoke just about a month ago 80 00:04:00,810 --> 00:04:03,330 S3: at a big local church, and we talked to the 81 00:04:03,330 --> 00:04:07,290 S3: senior ministry, and we talked to them about giving through 82 00:04:07,330 --> 00:04:11,490 S3: their retirement funds. I would say that probably 80% didn't 83 00:04:11,490 --> 00:04:14,010 S3: know they could do that. Number one. And number two, 84 00:04:14,290 --> 00:04:19,650 S3: they could take their required minimum distribution because unfortunately, as 85 00:04:19,650 --> 00:04:22,729 S3: you get older and you hit the 70s 73, now 86 00:04:22,970 --> 00:04:24,770 S3: you're going to have to take what's called a required 87 00:04:24,770 --> 00:04:27,890 S3: minimum distribution. The IRS requires you to take money out 88 00:04:27,890 --> 00:04:30,130 S3: of your retirement account and pay tax on it. You 89 00:04:30,130 --> 00:04:33,610 S3: can give all that money to a charity or to 90 00:04:33,650 --> 00:04:36,770 S3: your donor advised fund and not pay any tax. It 91 00:04:36,770 --> 00:04:39,650 S3: is the best right off in the world. And somebody 92 00:04:39,650 --> 00:04:41,690 S3: might say, well, it's only about six grand. It's only 93 00:04:41,690 --> 00:04:43,969 S3: about ten grand. I'd like to give more to my 94 00:04:44,010 --> 00:04:46,810 S3: favorite charity. Well, guess what? You can give as much 95 00:04:46,810 --> 00:04:50,089 S3: as you'd like out of that retirement account up to $100,000. 96 00:04:50,089 --> 00:04:50,929 S3: So let's do it. 97 00:04:50,970 --> 00:04:54,080 S2: Let's do it. I love it. If only Kevin was 98 00:04:54,080 --> 00:04:57,600 S2: a little more excited about taxes and giving and your 99 00:04:57,600 --> 00:05:00,160 S2: opportunity as a steward. Buddy, we're going to have you 100 00:05:00,160 --> 00:05:02,720 S2: back real soon. Great stuff as always. Thanks for being here. 101 00:05:02,760 --> 00:05:03,719 S3: Oh man. Thank you. 102 00:05:04,080 --> 00:05:07,760 S2: That's Kevin Cross, CPA, my good friend, an enrolled agent. 103 00:05:07,800 --> 00:05:10,679 S2: He joins us regularly. You can learn more about Kevin 104 00:05:10,680 --> 00:05:14,520 S2: and his work at Kevin Cross, CPA. Com. All right. 105 00:05:14,520 --> 00:05:16,760 S2: We're going to head to a break, so don't go anywhere. 106 00:05:16,800 --> 00:05:19,000 S2: Still a lot more to come, even though we're not 107 00:05:19,000 --> 00:05:21,240 S2: here to take your calls live today. But we have 108 00:05:21,240 --> 00:05:23,520 S2: plenty of calls that we lined up in advance. And 109 00:05:23,520 --> 00:05:35,560 S2: we'll get to those just around the corner. Thanks so 110 00:05:35,560 --> 00:05:38,120 S2: much for joining us today on Faith and Finance Live. 111 00:05:38,120 --> 00:05:40,680 S2: I'm Rob West, your host. Hey, our team is away 112 00:05:40,680 --> 00:05:43,720 S2: from the studio today. We're not here, but we've got 113 00:05:43,720 --> 00:05:46,359 S2: some great questions that we lined up in advance. I 114 00:05:46,360 --> 00:05:50,080 S2: know you'll enjoy those a little later in our broadcast. Folks, 115 00:05:50,080 --> 00:05:53,790 S2: have you checked out recently? Our website at Com if not, 116 00:05:53,790 --> 00:05:56,230 S2: I'd encourage you to do that. You'll find our community 117 00:05:56,230 --> 00:05:59,190 S2: there where you can post questions and comments, hear from 118 00:05:59,190 --> 00:06:02,110 S2: others that are on the stewardship journey as well. You 119 00:06:02,110 --> 00:06:04,870 S2: can also access our content and check out the Faith 120 00:06:04,870 --> 00:06:07,990 S2: fi app. It's at Faith five. Com. All right, let's 121 00:06:07,990 --> 00:06:10,430 S2: head to the phones. We're going to go to Wyoming first. Russ, 122 00:06:10,430 --> 00:06:11,630 S2: thanks for calling. Go ahead. 123 00:06:12,310 --> 00:06:16,589 S4: Hey, Rob, um, what wisdom can you share with me around, uh, 124 00:06:16,910 --> 00:06:19,350 S4: whether or not or when you might give your kids 125 00:06:19,390 --> 00:06:23,110 S4: a car? I've got three there. 16. 18. 20. Um, 126 00:06:23,550 --> 00:06:26,110 S4: we we've always lived 30 miles from the school, so 127 00:06:26,110 --> 00:06:29,789 S4: we've always provided a car for all their activities and 128 00:06:29,790 --> 00:06:32,230 S4: sports and stuff they had to do. I'm wondering, is 129 00:06:32,230 --> 00:06:34,270 S4: there a stage where it's a good idea to actually 130 00:06:34,510 --> 00:06:37,070 S4: then give them that car just so they can grow 131 00:06:37,070 --> 00:06:39,590 S4: in responsibility? As far as now, it's their own dime 132 00:06:39,630 --> 00:06:41,870 S4: and taking care of a vehicle. 133 00:06:42,150 --> 00:06:45,150 S2: Yeah, yeah, I love that. Um, so would the plan 134 00:06:45,190 --> 00:06:48,190 S2: be to do this? How many children do you have? 135 00:06:49,070 --> 00:06:51,700 S4: There's three. There's a junior and a senior in high 136 00:06:51,700 --> 00:06:53,339 S4: school and then a sophomore in college. 137 00:06:53,460 --> 00:06:56,260 S2: All right. And then, would your plan be assuming you 138 00:06:56,260 --> 00:06:59,500 S2: decided to go ahead with this, to make that gift 139 00:06:59,500 --> 00:07:02,140 S2: of an automobile to each of the children at a 140 00:07:02,140 --> 00:07:03,700 S2: certain age? Or what are you thinking? 141 00:07:04,820 --> 00:07:06,299 S4: Well, that's a really good question. 142 00:07:06,700 --> 00:07:09,700 S5: I don't know. What do you think? Yeah. Um, they. 143 00:07:09,700 --> 00:07:13,100 S4: All. So the two older ones have one we've provided. 144 00:07:13,220 --> 00:07:13,620 S5: Okay. 145 00:07:13,660 --> 00:07:17,980 S4: Um, the younger one. Not yet. Um, he's the, uh, there's. 146 00:07:18,020 --> 00:07:21,540 S4: We have one, actually, another vehicle that, um, we could. 147 00:07:21,580 --> 00:07:23,740 S4: So I could actually give all three of them. They're 148 00:07:23,740 --> 00:07:26,420 S4: all older vehicles. They're all good vehicles. They're probably worth 149 00:07:26,420 --> 00:07:27,620 S4: 15 grand apiece. 150 00:07:27,660 --> 00:07:28,740 S2: Got it. Yeah. Very good. 151 00:07:29,100 --> 00:07:29,540 S5: Yeah. 152 00:07:29,860 --> 00:07:32,740 S2: Yeah. I mean, you know, I think ultimately, I mean, 153 00:07:32,780 --> 00:07:36,300 S2: this is a really meaningful milestone, but I love the 154 00:07:36,300 --> 00:07:38,580 S2: fact that you're thinking through this carefully because I think 155 00:07:38,580 --> 00:07:41,100 S2: that's what is warranted here. I don't think there's a 156 00:07:41,140 --> 00:07:44,500 S2: right or wrong approach to this. Um, you know, our 157 00:07:44,500 --> 00:07:48,260 S2: approach in, in our household has been we provide an 158 00:07:48,260 --> 00:07:52,770 S2: automobile and, you know, they've, they've shared along the way. Um, 159 00:07:53,010 --> 00:07:55,530 S2: but it's at our cost. They pay for the gas, 160 00:07:55,530 --> 00:07:59,570 S2: but we provide the car, but it's not automatically theirs. 161 00:07:59,810 --> 00:08:02,650 S2: And it's a privilege, not a right to get to 162 00:08:02,690 --> 00:08:04,690 S2: use the car. When you use it, you're going to 163 00:08:04,690 --> 00:08:07,370 S2: pay for the gas. And so, you know, they've had 164 00:08:07,370 --> 00:08:09,730 S2: part time jobs along the way and, you know, have 165 00:08:09,730 --> 00:08:12,570 S2: saved money and in other ways to be able to 166 00:08:12,610 --> 00:08:15,730 S2: to use it. I cover the insurance, but it's just 167 00:08:15,730 --> 00:08:20,489 S2: based on your maturity and your responsibility. And so if 168 00:08:20,530 --> 00:08:23,810 S2: you're making good decisions and, uh, you know, doing what 169 00:08:23,810 --> 00:08:25,610 S2: you need to do, then you get use of the car. 170 00:08:25,610 --> 00:08:27,850 S2: If you don't, you know, that can be taken away 171 00:08:27,850 --> 00:08:31,570 S2: at any time. Now, um, when they get to the 172 00:08:31,570 --> 00:08:35,530 S2: point where they want a car of their own, we're 173 00:08:35,530 --> 00:08:38,250 S2: willing to go in on that with them and make 174 00:08:38,250 --> 00:08:42,410 S2: it a shared responsibility. Um, and they have to participate, 175 00:08:42,410 --> 00:08:44,170 S2: and they know that we'll go up to a certain 176 00:08:44,170 --> 00:08:47,090 S2: amount if they want to purchase their first car that, 177 00:08:47,130 --> 00:08:49,970 S2: you know, would be theirs. Um, none of us have 178 00:08:50,170 --> 00:08:52,610 S2: of them have taken us up on it yet. Uh, 179 00:08:52,610 --> 00:08:55,689 S2: they've just been, you know, driving our cars and, um, 180 00:08:55,690 --> 00:08:58,610 S2: and managing that. But, um, my oldest is is about 181 00:08:58,610 --> 00:09:02,170 S2: to get married. He's about to graduate from college, and, um, 182 00:09:02,250 --> 00:09:05,570 S2: he's potentially going to buy one of our cars from us, 183 00:09:05,570 --> 00:09:08,370 S2: which we would do at a pretty significant discount, which 184 00:09:08,370 --> 00:09:11,730 S2: would be that equivalent of the shared responsibility. So I 185 00:09:11,730 --> 00:09:14,170 S2: don't think there's a right or wrong approach here. I 186 00:09:14,170 --> 00:09:18,250 S2: think it starts with maturity, not money. And I think 187 00:09:18,250 --> 00:09:21,570 S2: ownership matters. And one of the healthiest approaches, I think, 188 00:09:21,570 --> 00:09:25,210 S2: is a shared responsibility, where you might go in on 189 00:09:25,210 --> 00:09:28,530 S2: it with them, but you're teaching, you know, stewardship and 190 00:09:28,530 --> 00:09:31,850 S2: a work ethic and gratitude as they, you know, work 191 00:09:31,850 --> 00:09:35,650 S2: for and participate in the car and perhaps even care 192 00:09:35,650 --> 00:09:37,570 S2: for it a little bit more than they might have 193 00:09:37,610 --> 00:09:42,050 S2: otherwise because they have some money invested in it, too. Um, 194 00:09:42,170 --> 00:09:45,410 S2: I don't think it should ever derail your finances, but 195 00:09:45,410 --> 00:09:47,760 S2: if you have the ability to do it. I think 196 00:09:47,800 --> 00:09:49,120 S2: at the end of the day, you can use it 197 00:09:49,120 --> 00:09:51,960 S2: as a discipleship moment. You know, a car is a tool. 198 00:09:52,200 --> 00:09:54,439 S2: It can serve the family and help them work and 199 00:09:54,440 --> 00:09:57,280 S2: build independence. But you want to frame it in terms 200 00:09:57,280 --> 00:10:01,440 S2: of responsibility and stewardship, not an entitlement. And, you know, 201 00:10:01,480 --> 00:10:03,199 S2: I think at the end of the day, as long 202 00:10:03,200 --> 00:10:06,200 S2: as you have those things in mind, whether you ultimately 203 00:10:06,200 --> 00:10:09,240 S2: gift them the car or you ask them to participate 204 00:10:09,240 --> 00:10:11,400 S2: in it, I don't think you can go wrong there. 205 00:10:11,480 --> 00:10:13,600 S2: I think a lot of that just comes down to, 206 00:10:13,840 --> 00:10:16,800 S2: you know, how much do you value them having some 207 00:10:16,800 --> 00:10:19,679 S2: skin in the game, number one. And then number two, 208 00:10:19,840 --> 00:10:23,600 S2: do your finances allow you to make it an outright gift? 209 00:10:23,600 --> 00:10:26,880 S2: And if so, then again, I don't think there's necessarily 210 00:10:26,880 --> 00:10:29,000 S2: anything bad about that. But does that all make sense? 211 00:10:29,760 --> 00:10:32,199 S4: It does. So then your oldest that's in college then 212 00:10:32,200 --> 00:10:35,520 S4: did he utilize one of your your vehicles then through school. 213 00:10:35,520 --> 00:10:35,959 S4: Through college. 214 00:10:36,000 --> 00:10:38,360 S2: Yeah. So what we did there is, you know, he 215 00:10:38,360 --> 00:10:41,320 S2: was living on campus and, you know, just said, I 216 00:10:41,320 --> 00:10:43,800 S2: don't think I need a car. Um, and, you know, 217 00:10:43,840 --> 00:10:47,230 S2: we he was fine on campus, just kind of walking 218 00:10:47,270 --> 00:10:50,030 S2: the campus and, you know, had a lot of friends 219 00:10:50,030 --> 00:10:52,510 S2: with cars and, you know, they would he'd ride to 220 00:10:52,510 --> 00:10:55,150 S2: church every Sunday with a buddy of his and, you know, 221 00:10:55,190 --> 00:10:57,829 S2: that kind of thing. Now, when my second one arrived 222 00:10:57,830 --> 00:11:00,150 S2: on campus, there is now a car on campus that 223 00:11:00,150 --> 00:11:02,590 S2: they kind of share and use, you know, on the 224 00:11:02,590 --> 00:11:04,710 S2: weekends and that kind of thing. And it's parked at 225 00:11:04,710 --> 00:11:07,670 S2: one of my kids homes. So yeah, he just decided 226 00:11:07,670 --> 00:11:10,230 S2: I don't need a car. And so therefore, you know, 227 00:11:10,270 --> 00:11:13,030 S2: I'm going to save my money for other things. And, 228 00:11:13,270 --> 00:11:15,510 S2: you know, he's made it work. Uh, you know, there 229 00:11:15,510 --> 00:11:18,230 S2: might be other kids or certain campuses where that's not 230 00:11:18,230 --> 00:11:21,910 S2: as as possible just because they're not as walkable or 231 00:11:21,950 --> 00:11:25,470 S2: for safety reasons. They need to, you know, have transportation. 232 00:11:25,470 --> 00:11:27,710 S2: And I think at that point you'd have to decide, okay, 233 00:11:27,750 --> 00:11:30,350 S2: are we going to provide the family car now on 234 00:11:30,350 --> 00:11:33,150 S2: campus because they're out, you know, they're not full time 235 00:11:33,150 --> 00:11:36,470 S2: at home? Or is that the opportunity where we say, okay, 236 00:11:36,510 --> 00:11:38,630 S2: if you want to take a car to college, you know, 237 00:11:38,670 --> 00:11:40,470 S2: either a I'm going to gift it to you or B, 238 00:11:40,510 --> 00:11:42,510 S2: we're going to share it, you know, and you need 239 00:11:42,510 --> 00:11:44,420 S2: to have some skin in the game. But that's where 240 00:11:44,420 --> 00:11:46,740 S2: we trigger that decision, if that makes sense. 241 00:11:47,700 --> 00:11:50,420 S4: It does. Very good. Hey, I really appreciate that. That 242 00:11:50,420 --> 00:11:51,300 S4: makes a lot of sense. 243 00:11:51,340 --> 00:11:53,740 S2: Awesome. You sound like a great dad, Russ. Appreciate you 244 00:11:53,740 --> 00:11:56,300 S2: being on the program. Call any time. God bless you. Uh, 245 00:11:56,300 --> 00:11:58,420 S2: Virginia is where we're headed next. David. Go ahead. 246 00:11:59,740 --> 00:12:03,540 S6: Um, a bunch of years back, uh, I had a 247 00:12:03,540 --> 00:12:07,420 S6: debt of about 17,000 on a credit card, and I 248 00:12:07,420 --> 00:12:10,580 S6: heard about Trinity Debt Management, and I called, and I've 249 00:12:10,580 --> 00:12:14,980 S6: been paying on it for several years. I'm probably down 250 00:12:14,980 --> 00:12:19,620 S6: to around 6 or 7000. Um, and I and I 251 00:12:19,660 --> 00:12:23,180 S6: listen to your show and, uh, I know you had, um, 252 00:12:23,620 --> 00:12:27,380 S6: mentioned a debt management that that you use or it's 253 00:12:27,380 --> 00:12:30,179 S6: yours or it's on your show. It was aired on 254 00:12:30,179 --> 00:12:34,780 S6: your show, and I was wondering, should I or could I, um, 255 00:12:34,940 --> 00:12:38,900 S6: you know, switch from Trinity to yours if it's, uh, 256 00:12:38,900 --> 00:12:42,849 S6: a lower interest because I think I'm just under 10%. 257 00:12:43,650 --> 00:12:46,970 S2: Yeah, yeah. Uh, no. You know, a debt management program 258 00:12:46,970 --> 00:12:48,810 S2: is a debt management program. And, I mean, I want 259 00:12:48,809 --> 00:12:52,050 S2: you to be with a a trusted provider, especially one 260 00:12:52,050 --> 00:12:56,450 S2: who has, uh, faith alignment. Uh, and even though our 261 00:12:56,450 --> 00:12:59,410 S2: long time partners here at Faith and finance are the 262 00:12:59,410 --> 00:13:04,410 S2: folks at Christian, uh, credit counselors. Christian credit counselors, uh, 263 00:13:04,410 --> 00:13:09,050 S2: Trinity is is very well known and trusted as well. Um, and, 264 00:13:09,090 --> 00:13:11,690 S2: you know, if you're in the debt management program at 265 00:13:11,690 --> 00:13:15,890 S2: the creditors that you have, uh, accounts with, uh, you're 266 00:13:15,890 --> 00:13:18,250 S2: going to get the credit counseling rate, whether you're with 267 00:13:18,250 --> 00:13:20,890 S2: Trinity or Christian credit counselors. So there wouldn't be any 268 00:13:20,890 --> 00:13:22,449 S2: reason to move from one to the other. 269 00:13:23,809 --> 00:13:25,330 S6: Excellent. Thank you very much. 270 00:13:25,530 --> 00:13:27,770 S2: All right. We appreciate your call. Thanks for being on 271 00:13:27,770 --> 00:13:32,250 S2: the program today. 800 525 7000 is the number to call. 272 00:13:32,250 --> 00:13:34,010 S2: We do have room for you. So if there's something 273 00:13:34,010 --> 00:13:36,610 S2: going on in your financial life today and you'd like 274 00:13:36,610 --> 00:13:38,850 S2: to get in on the conversation, uh, go ahead and 275 00:13:38,850 --> 00:13:43,450 S2: call right now that number again. 800 525. 7000. That's 276 00:13:43,450 --> 00:13:47,650 S2: 800 525. 7000. Hey, let me mention, as we head 277 00:13:47,650 --> 00:13:50,490 S2: toward year end, just about six weeks before the end 278 00:13:50,490 --> 00:13:53,210 S2: of the year. Hard to believe. Let me just encourage you, 279 00:13:53,210 --> 00:13:56,050 S2: if you listen to the program regularly, we could really 280 00:13:56,050 --> 00:13:59,890 S2: use your financial assistance as we head toward December 31st. 281 00:13:59,890 --> 00:14:02,770 S2: And what an opportunity to support the ministry, because we 282 00:14:02,770 --> 00:14:05,810 S2: have some incredible things coming up next year. Brand new 283 00:14:06,090 --> 00:14:08,410 S2: edition of the Faith V app that you're going to love. 284 00:14:08,410 --> 00:14:11,569 S2: My new devotional comes out in January, and right now 285 00:14:11,570 --> 00:14:16,090 S2: when you give, every gift is doubled up to 175,000, 286 00:14:16,130 --> 00:14:18,610 S2: and every gift gets a copy of my new devotional 287 00:14:18,610 --> 00:14:23,690 S2: as well. Just go to faith. Com that's faith. Com. 288 00:14:24,610 --> 00:14:25,490 S2: We'll be right back. 289 00:14:37,650 --> 00:14:40,960 S7: This is faith and finance. Live with Rob West. Hey, 290 00:14:40,960 --> 00:14:43,800 S7: if you hear a phone number mentioned today, please ignore 291 00:14:43,840 --> 00:14:47,200 S7: that number and don't call us because today's broadcast was 292 00:14:47,200 --> 00:14:50,920 S7: previously recorded. But we think the upcoming information will help 293 00:14:50,920 --> 00:14:53,280 S7: you and make you a wise steward of what God's 294 00:14:53,280 --> 00:14:55,880 S7: given you. So please stay tuned. 295 00:14:56,840 --> 00:14:59,800 S2: We're going to begin today in Illinois. John. Go ahead sir. 296 00:15:00,160 --> 00:15:04,280 S8: Hey, appreciate your ministry. Uh, Rob and, uh, yeah, question 297 00:15:04,320 --> 00:15:08,920 S8: on behalf of, uh, our spiritual son, about $4,000 in 298 00:15:08,960 --> 00:15:11,560 S8: the hole with four payday loans. 299 00:15:11,880 --> 00:15:12,280 S5: Mhm. 300 00:15:12,360 --> 00:15:16,880 S8: Yeah. And wondering if, uh, the Christian credit counseling group 301 00:15:16,880 --> 00:15:18,680 S8: that you recommend can help him. 302 00:15:18,880 --> 00:15:20,880 S2: Yeah. You know, this is a tough one, John. We've 303 00:15:20,880 --> 00:15:23,880 S2: got to break this cycle. I mean, the, uh, the 304 00:15:23,960 --> 00:15:28,360 S2: average interest rate for a payday loan is, you know, 305 00:15:28,400 --> 00:15:32,720 S2: would just blow your mind because these are short term. Yeah, well, 306 00:15:32,720 --> 00:15:35,000 S2: there's short term, and so they don't sound as bad 307 00:15:35,000 --> 00:15:37,760 S2: as they are, but when you run them out, uh, 308 00:15:37,760 --> 00:15:40,550 S2: you know, over a year. Uh, I mean, this can 309 00:15:40,550 --> 00:15:44,510 S2: be just astronomical. Uh, you know, it can run maybe, 310 00:15:44,550 --> 00:15:50,310 S2: you know, 300% of 500%, some even exceeding 600% annualized. 311 00:15:50,310 --> 00:15:53,230 S2: So I think, yeah, your work to come alongside him 312 00:15:53,230 --> 00:15:57,230 S2: to understand just how this needs to go away and 313 00:15:57,230 --> 00:16:00,670 S2: we need to find other solutions is key. Uh, of course, yes. 314 00:16:00,670 --> 00:16:02,750 S2: We want to deal with the debt that's owed. But 315 00:16:02,750 --> 00:16:06,150 S2: the underlying issue around him being able to live within 316 00:16:06,150 --> 00:16:09,790 S2: his means, especially once he gets out from under this, uh, 317 00:16:09,790 --> 00:16:11,990 S2: being able to have a spending plan that balances. So 318 00:16:11,990 --> 00:16:14,150 S2: he's not ever forced to go back to these types 319 00:16:14,150 --> 00:16:17,070 S2: of things again, or even as bad as credit cards 320 00:16:17,070 --> 00:16:20,750 S2: on are, you know, to to go to the credit cards. Yeah, 321 00:16:20,750 --> 00:16:24,470 S2: I would reach out to Christian credit counselors. Christian credit counselors, 322 00:16:25,550 --> 00:16:27,990 S2: where they really shine is with credit card debt. And 323 00:16:27,990 --> 00:16:30,550 S2: here's why. You know, they can just slide you right 324 00:16:30,550 --> 00:16:33,830 S2: into an existing program where that interest rate, where it's 325 00:16:33,870 --> 00:16:37,980 S2: instead of 600%, it's 23%. But that's that's still not good. 326 00:16:37,980 --> 00:16:40,900 S2: That's going to drop to between 0 and 8. Typically 327 00:16:41,260 --> 00:16:43,380 S2: in some cases as high as 12 you send one 328 00:16:43,380 --> 00:16:47,619 S2: monthly payment. Um, the, uh, you know, these loan sharks 329 00:16:47,620 --> 00:16:51,380 S2: that offer these payday loans, they're not set up to 330 00:16:51,420 --> 00:16:53,740 S2: work in quite the same way. You know, they know 331 00:16:53,740 --> 00:16:55,740 S2: they've got you and they're going to get every dime 332 00:16:55,780 --> 00:16:59,780 S2: out of you. But at least perhaps they can engage 333 00:16:59,780 --> 00:17:03,100 S2: with the payday loan company, you know, get, uh, perhaps 334 00:17:03,100 --> 00:17:05,699 S2: get the interest rate down. There's no guarantee. But at 335 00:17:05,700 --> 00:17:07,980 S2: the very least, he could send one monthly payment that 336 00:17:07,980 --> 00:17:10,980 S2: fits into his budget. Just a one entity, knowing that 337 00:17:10,980 --> 00:17:13,420 S2: they'd all be paid on time. And then the key 338 00:17:13,460 --> 00:17:16,660 S2: would be whatever he can do to dial back his spending. 339 00:17:16,780 --> 00:17:18,860 S2: So he frees up margin, because we're going to want 340 00:17:18,900 --> 00:17:21,940 S2: to send as much to that as we possibly can 341 00:17:21,940 --> 00:17:26,300 S2: to get that principle down, you know, out of every paycheck. Um, John, 342 00:17:26,300 --> 00:17:29,020 S2: I'd be happy to offer just as our gift to 343 00:17:29,060 --> 00:17:33,300 S2: you and him, one of our certified Christian financial counselors, 344 00:17:33,300 --> 00:17:37,570 S2: will cover the cost. But essentially what this trained godly 345 00:17:37,570 --> 00:17:41,050 S2: stewardship professional would do is come alongside him to help 346 00:17:41,050 --> 00:17:43,770 S2: him look at that budget and help put a plan 347 00:17:43,770 --> 00:17:46,449 S2: in place. Maybe, you know, look for areas to dial 348 00:17:46,450 --> 00:17:49,290 S2: it back, maybe give some creative ideas on how to 349 00:17:49,330 --> 00:17:52,090 S2: set up the budget and maintain it on a monthly basis. 350 00:17:52,210 --> 00:17:54,449 S2: Do you think that's something he would take advantage of? 351 00:17:54,730 --> 00:17:57,810 S8: Well, you know what? There's no harm in trying. 352 00:17:57,850 --> 00:17:58,850 S2: Yeah, okay. 353 00:17:59,010 --> 00:18:01,210 S8: I helped him try to budget the first time, but. Yeah, 354 00:18:01,210 --> 00:18:03,290 S8: that's that's a great offer. Do you have time for 355 00:18:03,290 --> 00:18:04,530 S8: one more quick question? 356 00:18:04,570 --> 00:18:06,250 S2: I do, what else can I help you with? 357 00:18:06,490 --> 00:18:09,970 S8: Yeah, there's a host here in the same area. I'm 358 00:18:09,970 --> 00:18:14,290 S8: at that. Um. Excuse me. Um, about to retire. They're 359 00:18:14,290 --> 00:18:18,410 S8: giving him a severance. $3,000 a month for six months, 360 00:18:18,450 --> 00:18:20,850 S8: starting in, uh, at the end of March. Okay. When? 361 00:18:20,850 --> 00:18:25,250 S8: When he's forced to retire. 64 years old and just wondering. 362 00:18:25,290 --> 00:18:26,850 S8: He's got. I don't know how much he's got in 363 00:18:26,850 --> 00:18:30,490 S8: his IRA, but through the company. But he's got probably 364 00:18:30,490 --> 00:18:34,800 S8: about $10,000 worth of debt, I'm estimating. What would you 365 00:18:34,800 --> 00:18:36,920 S8: suggest he do as far as I mean, obviously pay 366 00:18:36,920 --> 00:18:40,040 S8: the debt off, but as far as rolling over the IRA, 367 00:18:40,080 --> 00:18:44,400 S8: keeping it and then handling that $3,000 severance a month. 368 00:18:44,640 --> 00:18:48,000 S2: Yeah. Uh, so a couple of thoughts here, but a 369 00:18:48,000 --> 00:18:51,920 S2: question first. So he's got severance. Is this a transition 370 00:18:51,920 --> 00:18:55,320 S2: into retirement or will he go back to work. 371 00:18:55,600 --> 00:18:57,000 S8: Probably into retirement. 372 00:18:57,040 --> 00:19:00,800 S2: Okay. And the $3,000 severance. How long does that last? 373 00:19:01,040 --> 00:19:01,840 S8: Six months. 374 00:19:02,000 --> 00:19:05,200 S2: Okay. And then what are going to be his income 375 00:19:05,200 --> 00:19:06,560 S2: sources at that point? 376 00:19:06,880 --> 00:19:09,960 S8: I think that would be one. And then um, I 377 00:19:09,960 --> 00:19:13,320 S8: believe he said he's got something some way to work 378 00:19:13,320 --> 00:19:17,240 S8: out Social Security. Okay, I don't know. He's only 64, 379 00:19:17,240 --> 00:19:19,800 S8: but that's. Yeah, that's what he said. 380 00:19:20,040 --> 00:19:21,840 S2: Yeah. So that's key. I mean, we need to look 381 00:19:21,840 --> 00:19:24,479 S2: at this six month severance as you know just what 382 00:19:24,480 --> 00:19:27,160 S2: it is. It's temporary and we can't build a plan 383 00:19:27,160 --> 00:19:29,200 S2: around it. I would say the best use of that 384 00:19:29,200 --> 00:19:31,399 S2: money would be to get out from under the credit 385 00:19:31,400 --> 00:19:34,320 S2: card debt. So long as he's got a plan not 386 00:19:34,320 --> 00:19:36,640 S2: to go back into credit card debt. We we fix 387 00:19:36,640 --> 00:19:38,960 S2: the problem that got him there, and then he needs 388 00:19:38,960 --> 00:19:41,680 S2: to start working during this six month period to figure out, 389 00:19:41,680 --> 00:19:45,840 S2: can I live on Social Security alone? Because if he can't, 390 00:19:45,840 --> 00:19:51,040 S2: then the only other option is consider some part time work. Uh, thirdly, 391 00:19:51,040 --> 00:19:54,000 S2: and maybe a combination of the three. But thirdly, uh, 392 00:19:54,160 --> 00:19:57,120 S2: begin drawing an income from the IRA. How much is 393 00:19:57,119 --> 00:19:57,920 S2: in the IRA? 394 00:19:58,880 --> 00:20:01,920 S8: That's what he didn't tell me that yet. But, uh, 395 00:20:01,960 --> 00:20:04,240 S8: I'm going to I'm going to guess 100,000. 396 00:20:04,280 --> 00:20:07,000 S2: Okay. Yeah. So we would only, you know, if you 397 00:20:07,000 --> 00:20:09,360 S2: want to try to allow that to last. I mean, 398 00:20:09,359 --> 00:20:12,200 S2: you could start with a 4% withdrawal rate, but that's 399 00:20:12,200 --> 00:20:15,040 S2: only 4000 a year. Um, so that's going to give 400 00:20:15,040 --> 00:20:18,360 S2: him another 350 bucks a month, roughly. So the question 401 00:20:18,359 --> 00:20:21,080 S2: would be, you know, he doesn't need to roll it anywhere. 402 00:20:21,080 --> 00:20:23,159 S2: The IRA can stay right where it is. The question 403 00:20:23,160 --> 00:20:25,840 S2: is who's managing it? Let's make sure we have somebody 404 00:20:25,840 --> 00:20:29,320 S2: that can, you know, give professional oversight to that IRA. 405 00:20:29,760 --> 00:20:32,310 S2: And I think the starting point would be to say, okay, 406 00:20:32,350 --> 00:20:35,390 S2: if you were debt free, which means you take the, 407 00:20:35,430 --> 00:20:38,150 S2: you know, 18,000 you're going to get over the next 408 00:20:38,150 --> 00:20:40,910 S2: six months, you pay off the credit card debt, and 409 00:20:40,910 --> 00:20:42,590 S2: we take the rest of it, and we shore up 410 00:20:42,590 --> 00:20:45,910 S2: his emergency fund. So he's got, you know, some liquid margin. 411 00:20:45,910 --> 00:20:47,430 S2: I'd love for him to have at least six months 412 00:20:47,430 --> 00:20:50,470 S2: worth of expenses. Then the question would be, could he 413 00:20:50,470 --> 00:20:53,389 S2: live on Social Security, recognizing he's going to have to 414 00:20:53,390 --> 00:20:55,950 S2: take it early, which means it's going to be reduced, 415 00:20:55,990 --> 00:20:58,590 S2: you know, probably as much as 25% if he's taking 416 00:20:58,590 --> 00:21:01,070 S2: it three years early. That could be a little less 417 00:21:01,070 --> 00:21:05,310 S2: than that. Social security at a reduced level. Plus, in 418 00:21:05,350 --> 00:21:09,110 S2: my example, if it's 100,000 in the IRA, $350 a month, 419 00:21:09,270 --> 00:21:12,070 S2: as long as it's invested to make that up over time. 420 00:21:12,390 --> 00:21:15,310 S2: And if he can't, then we've got to either, you know, 421 00:21:15,350 --> 00:21:18,389 S2: continue to work so that he can continue to build 422 00:21:18,390 --> 00:21:22,710 S2: Social Security toward his full retirement age benefit or, you know, 423 00:21:22,750 --> 00:21:24,950 S2: look for some other option. Does that make sense? 424 00:21:25,550 --> 00:21:28,629 S8: Super. Thank you. Yeah. And he could use Kingdom Advisor 425 00:21:28,630 --> 00:21:31,380 S8: I've talked to him about that. So yeah, yeah, yeah. 426 00:21:31,380 --> 00:21:34,660 S2: He could find a way to manage the money and 427 00:21:34,700 --> 00:21:39,140 S2: find a comm. Hey, John. Thanks for calling, sir. You 428 00:21:39,180 --> 00:21:42,300 S2: sound like a great guy. Coming alongside some some friends, 429 00:21:42,300 --> 00:21:45,139 S2: helping them to manage their money wisely. Maybe there's a 430 00:21:45,140 --> 00:21:48,540 S2: a ministry here in this for you as well as 431 00:21:48,540 --> 00:21:52,380 S2: you serve other people. Uh, thanks for calling today. Call anytime. 432 00:21:52,420 --> 00:21:55,020 S2: Much more to come. Just around the corner. Stick around. 433 00:22:04,980 --> 00:22:06,820 S2: So glad to have you with us today on Faith 434 00:22:06,820 --> 00:22:10,180 S2: and Finance Live. Our team is away today, so don't 435 00:22:10,180 --> 00:22:13,020 S2: call in. But we lined up some great questions in 436 00:22:13,020 --> 00:22:15,060 S2: advance and we'll be going to those here in just 437 00:22:15,060 --> 00:22:17,699 S2: a moment. Let me also remind you that the advice 438 00:22:17,700 --> 00:22:21,020 S2: that I give each day on this program is general 439 00:22:21,020 --> 00:22:25,379 S2: in nature. We offer principles and ideas that apply at 440 00:22:25,380 --> 00:22:28,770 S2: a high level. They are not personalized, so that's why 441 00:22:28,770 --> 00:22:32,490 S2: you should always seek professional financial advice. And if you'd 442 00:22:32,490 --> 00:22:35,330 S2: like to find a professional who shares your values, we 443 00:22:35,410 --> 00:22:38,130 S2: of course, here at Faith and Finance Live recommend the 444 00:22:38,130 --> 00:22:41,730 S2: Certified Kingdom Advisor designation. These are men and women who've 445 00:22:41,730 --> 00:22:44,810 S2: met high standards, and they've been trained to bring a 446 00:22:44,810 --> 00:22:47,690 S2: biblical worldview of financial decision making. You can find one 447 00:22:47,690 --> 00:22:51,609 S2: at Faith comm. Uh, let's head back to the phones. Louisiana. Ken. 448 00:22:51,609 --> 00:22:52,290 S2: Go ahead. Sir. 449 00:22:53,050 --> 00:22:55,650 S9: Yeah. It's nice talking to you. You as well. Um, 450 00:22:55,810 --> 00:23:02,810 S9: I am retired, 74, and I've got about 25,000 in 451 00:23:02,810 --> 00:23:06,410 S9: an IRA in a bank. I just got out of 452 00:23:06,410 --> 00:23:10,169 S9: an annuity, and I'm wanting to put what I can 453 00:23:10,170 --> 00:23:14,730 S9: into some gold. But I owe 13,000 on a ridiculous 454 00:23:14,730 --> 00:23:18,410 S9: card that I signed for some home repairs, and I 455 00:23:18,410 --> 00:23:21,410 S9: need to get out from under that payment. And I'm wondering, 456 00:23:21,410 --> 00:23:24,969 S9: is there a way to have someone that can intercede 457 00:23:24,970 --> 00:23:29,400 S9: for me with this credit card company to talk them off. 13,000. 458 00:23:29,800 --> 00:23:32,399 S9: And you know. You know, pay a lump sum and 459 00:23:32,400 --> 00:23:34,280 S9: get out from under that debt. 460 00:23:34,320 --> 00:23:39,320 S2: Yeah, absolutely. Now, it's not a negotiation. It's a set program. 461 00:23:39,480 --> 00:23:41,800 S2: But it is my preferred way to pay off credit 462 00:23:41,800 --> 00:23:45,400 S2: card debt greater than $4,000. That just typically is kind 463 00:23:45,400 --> 00:23:47,639 S2: of the breakpoint. When you're under that you can snowball it, 464 00:23:47,680 --> 00:23:50,560 S2: do it yourself over that. It really is helpful to 465 00:23:50,600 --> 00:23:55,440 S2: have some assistance and debt management or what's called credit counseling, 466 00:23:55,440 --> 00:23:58,760 S2: is the process by which you work through a nonprofit 467 00:23:58,760 --> 00:24:03,360 S2: credit counseling agency. They have access at each of the creditors. 468 00:24:03,359 --> 00:24:05,760 S2: So money if it's with Chase, it stays with Chase. 469 00:24:05,760 --> 00:24:08,080 S2: If it's a city, it stays with city. But each 470 00:24:08,080 --> 00:24:10,800 S2: of the creditors have a credit counseling rate. But you 471 00:24:10,800 --> 00:24:13,280 S2: can only access it if you run through a nonprofit 472 00:24:13,280 --> 00:24:16,480 S2: credit counseling agency. So you'd make your payment to them, 473 00:24:16,520 --> 00:24:19,160 S2: they'd send it on to the creditor, you. They'd give 474 00:24:19,160 --> 00:24:22,320 S2: you a level monthly payment, probably somewhere around 3% of 475 00:24:22,320 --> 00:24:26,399 S2: the balance. So you said you have, you know, $12,000. 476 00:24:26,440 --> 00:24:30,800 S2: I mean, we're talking $360 a month, probably somewhere around there. And, 477 00:24:30,840 --> 00:24:33,240 S2: you know, that interest rate would generally drop. It's going 478 00:24:33,240 --> 00:24:35,720 S2: to depend on the creditor. Each one's a little different, 479 00:24:35,720 --> 00:24:39,159 S2: but somewhere between 0 and 10%. And the combination of 480 00:24:39,200 --> 00:24:42,560 S2: that level payment and that reduced interest rate, you know, 481 00:24:42,600 --> 00:24:45,800 S2: helps you to pay it off 80% faster. The not 482 00:24:45,840 --> 00:24:47,879 S2: the fact that you're in credit counseling is not a 483 00:24:47,880 --> 00:24:51,040 S2: part of the credit scoring algorithm. So that in and 484 00:24:51,040 --> 00:24:54,560 S2: of itself doesn't affect you. But the account would be closed, 485 00:24:54,560 --> 00:24:57,920 S2: at least temporarily, while you're in the program. That could 486 00:24:57,920 --> 00:24:59,879 S2: cause your score to drop slightly, just like if you 487 00:24:59,920 --> 00:25:03,840 S2: closed any other account. But that's you know, my primary 488 00:25:03,840 --> 00:25:05,960 S2: concern is you getting out of debt with as little 489 00:25:05,960 --> 00:25:09,399 S2: interest as possible. And if you don't have funds available, 490 00:25:09,920 --> 00:25:11,800 S2: you know, to do that without pulling it from a 491 00:25:11,800 --> 00:25:14,919 S2: retirement account or something like that. You know, credit counseling 492 00:25:14,920 --> 00:25:16,399 S2: would be the way to go. And our friends at 493 00:25:16,400 --> 00:25:20,520 S2: Christian Credit Counselors we've worked with for decades, they're incredible. 494 00:25:20,520 --> 00:25:23,400 S2: They've worked with tens of thousands of our listeners, and 495 00:25:23,400 --> 00:25:27,310 S2: we always get great reviews. Christian Credit Counselors is the 496 00:25:27,310 --> 00:25:27,950 S2: place to go. 497 00:25:29,109 --> 00:25:32,310 S9: Well, I've got the money in the IRA account and 498 00:25:32,310 --> 00:25:35,430 S9: I just as soon wipe it out, the payment all 499 00:25:35,430 --> 00:25:39,270 S9: in one fell swoop as opposed to, you know, getting 500 00:25:39,270 --> 00:25:43,949 S9: into a payoff system. And I'm just wondering, would they 501 00:25:43,990 --> 00:25:48,869 S9: be able to do that intercession and talk the creditor down, 502 00:25:48,910 --> 00:25:50,910 S9: or should I just try and do that myself? 503 00:25:51,470 --> 00:25:51,950 S5: Yeah. 504 00:25:51,990 --> 00:25:54,590 S2: In terms of trying to get a reduced payoff. 505 00:25:55,550 --> 00:25:56,190 S9: Right. 506 00:25:56,270 --> 00:25:58,990 S2: Right now they wouldn't you'd have to go to a 507 00:25:58,990 --> 00:26:02,550 S2: debt settlement company. And I wouldn't recommend that because here's 508 00:26:02,550 --> 00:26:03,949 S2: what they're going to do. They're going to tell you 509 00:26:03,950 --> 00:26:07,070 S2: to stop paying it and get it into collections. And 510 00:26:07,070 --> 00:26:08,590 S2: then they're going to try to come in behind you 511 00:26:08,590 --> 00:26:11,790 S2: and negotiate it. And that's a disaster because it just 512 00:26:11,830 --> 00:26:15,389 S2: wreaks havoc on your your credit. And it's just not 513 00:26:15,390 --> 00:26:18,750 S2: a good approach. And they're not going to negotiate a 514 00:26:18,750 --> 00:26:21,750 S2: reduced payoff, even if you're paying it all in a 515 00:26:21,750 --> 00:26:25,380 S2: lump sum. That's just not the way they operate these 516 00:26:25,380 --> 00:26:28,580 S2: credit card companies. And anybody who tells you otherwise, you know, 517 00:26:28,619 --> 00:26:30,940 S2: has something up their sleeve or is going to try 518 00:26:30,940 --> 00:26:34,820 S2: to get you into a a significantly delinquent status before 519 00:26:34,820 --> 00:26:38,540 S2: they do it. So if you're wanting to pay it off, uh, 520 00:26:38,540 --> 00:26:41,740 S2: you know, in full and you know that money's coming 521 00:26:41,740 --> 00:26:43,619 S2: from the IRA, you're going to need to set aside 522 00:26:43,619 --> 00:26:46,740 S2: the taxes. Um, but there's not going to be any 523 00:26:46,780 --> 00:26:49,580 S2: kind of, uh, you know, paid and full discount from 524 00:26:49,580 --> 00:26:50,340 S2: the creditor. 525 00:26:51,220 --> 00:26:54,179 S9: Okay, now, I'm going to confess to you I haven't 526 00:26:54,180 --> 00:26:58,940 S9: paid taxes for the past four years. Um, I'm just 527 00:26:58,940 --> 00:27:03,420 S9: collecting my pension and Social Security. Okay. Um. 528 00:27:03,740 --> 00:27:04,020 S5: Yeah. 529 00:27:04,100 --> 00:27:06,139 S9: Do I need to pay taxes still? 530 00:27:06,180 --> 00:27:08,900 S2: Well, not necessarily. I mean, just everything you take out 531 00:27:08,900 --> 00:27:11,620 S2: is going to be added to your taxable income. So 532 00:27:11,660 --> 00:27:14,740 S2: if it pushes you over the threshold by having an 533 00:27:14,740 --> 00:27:19,180 S2: additional $12,000 in taxable income for the year, whereby some 534 00:27:19,180 --> 00:27:22,970 S2: of your Social Security is now taxable, that wasn't or 535 00:27:23,130 --> 00:27:26,610 S2: it gets you above the standard deduction. Um, you know, 536 00:27:26,650 --> 00:27:29,210 S2: you may end up paying some tax on your Social 537 00:27:29,210 --> 00:27:33,850 S2: Security or this withdrawal, the distribution where you haven't in 538 00:27:33,850 --> 00:27:36,170 S2: the past because you've been under those limits. 539 00:27:37,050 --> 00:27:41,290 S9: All right. All right. Well, good. Well, I appreciate the information. 540 00:27:41,450 --> 00:27:43,330 S2: All right Ken. God bless you, my friend. Thanks for 541 00:27:43,330 --> 00:27:47,050 S2: being on the program today. 800 525 7000 is the 542 00:27:47,050 --> 00:27:50,370 S2: number to call. Let's go to Texas. Kathy, how can 543 00:27:50,369 --> 00:27:50,970 S2: I help you? 544 00:27:52,050 --> 00:27:58,130 S10: Hi. I'm a former teacher in Texas, um, in Texas, 545 00:27:58,130 --> 00:28:02,810 S10: and I taught at a prison. And in the prison system. Uh, 546 00:28:02,850 --> 00:28:06,649 S10: the vocational trades we taught was to. The intention was 547 00:28:06,650 --> 00:28:09,489 S10: to get out and work and make money and be 548 00:28:09,530 --> 00:28:13,450 S10: able to get a job here in the Houston area, uh, 549 00:28:13,570 --> 00:28:16,770 S10: where I live. The Texas Workforce Commission is telling the 550 00:28:17,609 --> 00:28:23,520 S10: the felons that the Ex-felons. Ex-convicts that they cannot get 551 00:28:23,520 --> 00:28:29,360 S10: a job until seven years after after they are off probation. 552 00:28:30,480 --> 00:28:34,280 S10: And that's the law. So I guess my question to 553 00:28:34,280 --> 00:28:39,240 S10: you is one, is that the law? And how is 554 00:28:39,240 --> 00:28:43,160 S10: a person able to financially take care of themselves if 555 00:28:43,160 --> 00:28:47,320 S10: they're not able to work anywhere? We got it recorded. 556 00:28:48,560 --> 00:28:49,040 S2: Yeah. 557 00:28:49,080 --> 00:28:51,720 S10: He said they told them that they couldn't work anywhere. 558 00:28:52,400 --> 00:28:54,800 S10: And that's the law until after seven years. 559 00:28:55,480 --> 00:28:58,880 S2: Yeah. Well, here's what I would say. First of all, 560 00:28:58,880 --> 00:29:01,400 S2: I'm not an attorney. Second of all, it is, you know, 561 00:29:01,440 --> 00:29:04,720 S2: state law you're talking about. And I'm certainly not versed 562 00:29:04,720 --> 00:29:07,040 S2: in Texas state law. I will tell you, my team 563 00:29:07,640 --> 00:29:10,480 S2: saw this question. And did you know, just some quick 564 00:29:10,480 --> 00:29:15,320 S2: research and we're not seeing any kind of Texas law. 565 00:29:15,480 --> 00:29:20,630 S2: That's kind of a blanket state statewide statute. Um, you 566 00:29:20,630 --> 00:29:26,229 S2: know that, uh, that prohibits ex-offenders post parole from working? Uh, 567 00:29:26,230 --> 00:29:29,190 S2: there is there's no specific law that we can find 568 00:29:29,190 --> 00:29:32,470 S2: that says an inmate cannot work for seven years after parole. Now, 569 00:29:32,630 --> 00:29:37,630 S2: of course, many licensing agencies could deny or, you know, just, 570 00:29:37,670 --> 00:29:40,310 S2: you know, suspend or revoke a license if somebody's been 571 00:29:40,310 --> 00:29:44,190 S2: in prison. There could be job restrictions for people on parole, 572 00:29:44,190 --> 00:29:49,550 S2: especially if it involves, you know, vulnerable populations or handling cash. Um, 573 00:29:49,870 --> 00:29:52,750 S2: you know, but I would say, you know, as far 574 00:29:52,750 --> 00:29:55,670 S2: as we're concerned, we're not seeing anything that would be 575 00:29:55,670 --> 00:29:59,190 S2: a general blanket. So that would be pretty surprising. Um, 576 00:29:59,830 --> 00:30:02,750 S2: so I would obviously, if you want to dig further, 577 00:30:02,790 --> 00:30:06,150 S2: you know, contact somebody who is an attorney there and 578 00:30:06,150 --> 00:30:09,630 S2: can look up the specific, uh, rules and regs and 579 00:30:09,630 --> 00:30:12,270 S2: statutes related to Texas, but we're not seeing anything. 580 00:30:13,590 --> 00:30:14,590 S10: Thank you for your time. 581 00:30:15,110 --> 00:30:17,830 S2: Absolutely. And thanks for your call today. Hey, before we 582 00:30:17,870 --> 00:30:19,870 S2: head to this break, just a quick reminder. Our team 583 00:30:19,870 --> 00:30:22,270 S2: is away from the studio today, so don't call in. 584 00:30:22,310 --> 00:30:24,990 S2: We did line up some great questions in advance, and 585 00:30:25,030 --> 00:30:26,590 S2: when we come back from this break, we'll have an 586 00:30:26,590 --> 00:30:30,310 S2: opportunity to hear some of those questions. Let me also 587 00:30:30,310 --> 00:30:32,830 S2: remind you that if you have a question you'd like 588 00:30:32,830 --> 00:30:35,670 S2: to get in front of us and get an answer to. 589 00:30:35,710 --> 00:30:38,790 S2: You can always send it in electronically. That's right. The 590 00:30:38,790 --> 00:30:41,510 S2: way to send an electronic question is just to head 591 00:30:41,510 --> 00:30:46,390 S2: to Moody Radio.com. You'll see the form there on that 592 00:30:46,390 --> 00:30:49,630 S2: page where you can submit your question. We try to 593 00:30:49,670 --> 00:30:51,750 S2: get to a few of those each week on the 594 00:30:51,750 --> 00:30:57,550 S2: air again. Moody Radio.com. Back with more on Faith and finance. 595 00:30:57,590 --> 00:31:06,710 S2: Live right after this. Stick around. We're so glad you've 596 00:31:06,710 --> 00:31:09,550 S2: joined us for Faith and Finance Live today here in 597 00:31:09,550 --> 00:31:12,030 S2: our final segment, let me remind you not to call 598 00:31:12,030 --> 00:31:14,550 S2: in because we're not live today, but we'd love for 599 00:31:14,550 --> 00:31:17,780 S2: you to stick around and enjoy the rest of the program. 600 00:31:17,940 --> 00:31:19,620 S2: Let's go to Texas, David. Go ahead. 601 00:31:19,900 --> 00:31:23,180 S11: Yes. Thank you for taking my call. Uh, my wife 602 00:31:23,180 --> 00:31:26,100 S11: and I have been married going on 42 years. We've 603 00:31:26,100 --> 00:31:30,660 S11: always been strong. And tithing and beyond tithing, trying to 604 00:31:30,660 --> 00:31:34,260 S11: be very generous in our giving. We are now in 605 00:31:34,260 --> 00:31:40,020 S11: a season where, um, inheritances from parents who are passing 606 00:31:40,020 --> 00:31:44,180 S11: are beginning to come our way, and we find ourselves 607 00:31:44,220 --> 00:31:47,500 S11: kind of at two different ends of the spectrum or 608 00:31:47,540 --> 00:31:51,500 S11: not extreme ends. But my question is this as we 609 00:31:51,500 --> 00:31:55,060 S11: look at inheritance, I see it as this is a 610 00:31:55,100 --> 00:31:58,820 S11: gift from our parents. Just like if our parents gave 611 00:31:58,820 --> 00:32:02,940 S11: us a gift of $500 at Christmas, we don't we 612 00:32:02,980 --> 00:32:05,940 S11: don't look at that and say we need to tithe 613 00:32:05,940 --> 00:32:09,380 S11: on it. We can always be generous and say, let's 614 00:32:09,380 --> 00:32:12,740 S11: give some of this to the Lord to work. But, um, 615 00:32:12,780 --> 00:32:17,130 S11: that's a gift Um, I see inheritance as the same 616 00:32:17,130 --> 00:32:20,610 S11: way that this is a gift from our parents. Money. 617 00:32:20,610 --> 00:32:25,810 S11: They've made. Money they've tithed on or so forth. And 618 00:32:26,250 --> 00:32:29,969 S11: my point is, we let's be generous and ask the 619 00:32:29,970 --> 00:32:32,810 S11: Lord if he would have us to share some of 620 00:32:32,810 --> 00:32:36,330 S11: this for his kingdom work. But I don't feel impelled 621 00:32:36,330 --> 00:32:40,130 S11: that we need to say any inheritance that comes, we 622 00:32:40,130 --> 00:32:44,570 S11: need to automatically give 10% of that. So I just 623 00:32:44,570 --> 00:32:49,130 S11: wanted to get your insight and how you would teach 624 00:32:49,170 --> 00:32:55,130 S11: or approach the whole aspect of tithing from family inheritance. 625 00:32:55,170 --> 00:32:58,610 S2: Yeah. That's great David. Boy, a really phenomenal question, and 626 00:32:58,610 --> 00:33:01,090 S2: I appreciate that. It comes from a place of wanting 627 00:33:01,090 --> 00:33:03,530 S2: to honor the Lord. You know, Scripture calls us to 628 00:33:03,570 --> 00:33:06,810 S2: give our first fruits back to the Lord, acknowledging that 629 00:33:06,810 --> 00:33:10,010 S2: everything we receive ultimately comes from him. And I would 630 00:33:10,010 --> 00:33:12,730 S2: say an inheritance is no exception. You know, we didn't 631 00:33:12,730 --> 00:33:15,600 S2: earn it through work, but it's still an increase. And 632 00:33:15,600 --> 00:33:18,640 S2: that's really the idea of the principle that tithe is 633 00:33:18,640 --> 00:33:22,600 S2: based on an increase, which is a blessing entrusted to 634 00:33:22,640 --> 00:33:25,440 S2: each of us. Um, you know, for many believers, tithing 635 00:33:25,440 --> 00:33:28,800 S2: on an inheritance, I would say, becomes a meaningful act 636 00:33:28,800 --> 00:33:31,560 S2: of gratitude for God's provision and a way to honor 637 00:33:31,600 --> 00:33:35,200 S2: the legacy of the one who passed it on. That said, 638 00:33:35,400 --> 00:33:39,960 S2: the Bible doesn't give a specific command about tithing on 639 00:33:39,960 --> 00:33:42,400 S2: an inheritance. I would say this is an area of 640 00:33:42,440 --> 00:33:46,880 S2: personal conviction and joyful generosity, not legalism. Some choose to 641 00:33:46,920 --> 00:33:50,280 S2: tithe on the full amount, others tithe only on what 642 00:33:50,280 --> 00:33:54,000 S2: they keep after settling expenses and if there's any taxes 643 00:33:54,000 --> 00:33:57,800 S2: or dividing the estate. Others give beyond the tithe because 644 00:33:57,800 --> 00:34:01,520 S2: the gift feels especially significant. I think the key is 645 00:34:01,520 --> 00:34:04,160 S2: your heart and you want to approach it prayerfully. I 646 00:34:04,160 --> 00:34:07,480 S2: think with a desire to worship God through your giving. 647 00:34:07,520 --> 00:34:09,279 S2: You know, as we look at the the idea of 648 00:34:09,280 --> 00:34:12,430 S2: the tithe in Scripture, I mean, we see the word 649 00:34:12,430 --> 00:34:18,190 S2: 49 times. But interestingly, as we look in the New Testament, 650 00:34:18,310 --> 00:34:21,989 S2: you know, there's basically 21 chapters in Scripture that have 651 00:34:21,989 --> 00:34:26,310 S2: the most rich, convicting teachings on money by Jesus and 652 00:34:26,310 --> 00:34:29,710 S2: John and Matthew and Paul and and James. And when 653 00:34:29,710 --> 00:34:33,230 S2: you look at these passages, you know, the tithe was 654 00:34:33,230 --> 00:34:37,830 S2: mentioned absolutely zero times. Now it's there four times in 655 00:34:37,830 --> 00:34:40,230 S2: the New Testament, but each time it's a side note 656 00:34:40,230 --> 00:34:43,069 S2: in a conversation about something else. And that may be 657 00:34:43,070 --> 00:34:46,350 S2: surprising to some people, just given that stewardship teaching in 658 00:34:46,350 --> 00:34:49,310 S2: the church today is often centered on tithing. But I 659 00:34:49,310 --> 00:34:51,549 S2: would also say that despite the fact that I don't 660 00:34:51,550 --> 00:34:55,190 S2: think it's it's there, you know, as the a minimum 661 00:34:55,190 --> 00:34:58,870 S2: standard for giving in the New Testament, I would say 662 00:34:58,989 --> 00:35:01,750 S2: the tithe giving a 10th on the increase is still 663 00:35:01,750 --> 00:35:07,350 S2: a helpful way to step into faithful, consistent generosity. Because really, 664 00:35:07,350 --> 00:35:11,030 S2: there is much more to the picture of New Testament stewardship. 665 00:35:11,070 --> 00:35:13,710 S2: I mean, it it really encourages us to evaluate our 666 00:35:13,710 --> 00:35:18,270 S2: heart posture rather than a specific set of rules. And 667 00:35:18,270 --> 00:35:19,870 S2: I would say those of us who have seen what 668 00:35:19,910 --> 00:35:23,030 S2: Jesus has done on our behalf on the cross should be, 669 00:35:23,390 --> 00:35:25,150 S2: you know, willing to give even more. And that's why 670 00:35:25,150 --> 00:35:28,150 S2: I think Randy Alcorn calls the tithe the training wheels 671 00:35:28,150 --> 00:35:30,069 S2: of giving. So, you know, if we're going to give 672 00:35:30,070 --> 00:35:34,669 S2: systematically and proportionately and even sacrificially, you know, I would 673 00:35:34,670 --> 00:35:39,230 S2: say as God provides, we then out of gratitude for 674 00:35:39,230 --> 00:35:41,589 S2: what he's done and the grace he's extended to us, 675 00:35:41,590 --> 00:35:43,989 S2: we give. And I think the tithe is a great 676 00:35:43,989 --> 00:35:46,950 S2: place to start. But again, I don't think, you know, 677 00:35:46,989 --> 00:35:50,350 S2: it's out of a check the box legalism approach. It's 678 00:35:50,350 --> 00:35:53,270 S2: really out of a, you know, an approach that says, 679 00:35:53,590 --> 00:35:56,630 S2: I want to give as unto the Lord as God 680 00:35:56,630 --> 00:36:01,390 S2: prospers me. And you know, all of your increase would be, 681 00:36:01,430 --> 00:36:05,190 S2: you know, in play for that, including the inheritance. But ultimately, 682 00:36:05,190 --> 00:36:06,790 S2: I think it's between you and your wife and the 683 00:36:06,790 --> 00:36:08,980 S2: Lord to kind of pray through it and decide how 684 00:36:08,980 --> 00:36:11,140 S2: you want to approach it. Does that make sense at all? 685 00:36:11,739 --> 00:36:14,980 S11: It does, and that's very helpful. And, um, you know, 686 00:36:15,140 --> 00:36:18,700 S11: where I'm wrestling is, we've always tried to go above 687 00:36:18,700 --> 00:36:22,140 S11: and beyond. So we want to maintain a heart of 688 00:36:22,219 --> 00:36:26,739 S11: gratitude and generosity. It's caused me to wrestle a little 689 00:36:26,780 --> 00:36:30,460 S11: bit with just a quick example. Well, what if I'm 690 00:36:30,460 --> 00:36:33,020 S11: just making it up? What if my mother passes away 691 00:36:33,300 --> 00:36:37,979 S11: and she leaves me her vehicle? That's worth $25,000, just 692 00:36:37,980 --> 00:36:41,340 S11: as an example. Well, normally I wouldn't be thinking, okay, 693 00:36:41,380 --> 00:36:44,900 S11: that's an increase, so I need to tie that car's value. 694 00:36:44,940 --> 00:36:48,540 S11: Maybe I should. And so I've just been trying to 695 00:36:48,580 --> 00:36:52,180 S11: think through, you know, there's gifts that we receive that 696 00:36:52,180 --> 00:36:56,900 S11: aren't money, but they're still worth value. And. Yeah. So 697 00:36:56,900 --> 00:37:00,500 S11: I've just been kind of trying to wrestle through. But 698 00:37:00,540 --> 00:37:03,980 S11: your perspective, that's where my wife's coming from. And so 699 00:37:04,500 --> 00:37:08,969 S11: that's helpful. Just reinforcing that understand them so well. 700 00:37:08,969 --> 00:37:10,810 S2: But what I would say to that point, which is 701 00:37:10,810 --> 00:37:14,210 S2: a great example about the illiquid car, meaning you have 702 00:37:14,210 --> 00:37:18,250 S2: an asset, is it an increase? Yes. But is it converted, 703 00:37:18,290 --> 00:37:21,530 S2: you know, convertible to cash? Well, not unless it's sold. 704 00:37:21,530 --> 00:37:25,530 S2: But I think that's again, where if we view the 10% 705 00:37:25,530 --> 00:37:31,009 S2: tithe as a historic benchmark of generosity, not as a 706 00:37:31,010 --> 00:37:34,370 S2: legal requirement, you know, then we can say, okay, the 707 00:37:34,370 --> 00:37:39,009 S2: practice still offers guidance today. But again, it's not about 708 00:37:39,050 --> 00:37:42,690 S2: a legal minimum standard. Um, because we don't want to 709 00:37:42,730 --> 00:37:46,609 S2: tip into a legalism mentality. We want to stay out of, uh, 710 00:37:46,650 --> 00:37:49,850 S2: you know, a posture of gratitude. And we give as 711 00:37:49,850 --> 00:37:53,649 S2: an overflow of our gratitude to God, not because, you know, 712 00:37:53,690 --> 00:37:56,290 S2: God is an accountant and he's, you know, he's looking 713 00:37:56,290 --> 00:38:00,170 S2: at every, uh, you know, gift and, you know, determining 714 00:38:00,170 --> 00:38:02,450 S2: whether or not we've given on it. So I think 715 00:38:02,450 --> 00:38:04,290 S2: the car is a great example where you might say, 716 00:38:04,330 --> 00:38:07,080 S2: you know what? When we convert this asset to cash, 717 00:38:07,600 --> 00:38:09,320 S2: you know we're going to give on it. But ultimately 718 00:38:09,320 --> 00:38:10,720 S2: that's between you and the Lord. 719 00:38:11,200 --> 00:38:14,239 S11: Right? Hey. Thank you. This has been very helpful. What 720 00:38:14,239 --> 00:38:17,520 S11: I needed to hear. And I appreciate your, um, your 721 00:38:17,560 --> 00:38:18,680 S11: wisdom and input. 722 00:38:18,960 --> 00:38:22,040 S2: Absolutely. David, thanks for your call. Anytime. Let's, uh, talk 723 00:38:22,040 --> 00:38:24,120 S2: to another David in Ohio. Go ahead. Sir. 724 00:38:24,920 --> 00:38:27,399 S12: Yes, sir. Thank you for your ministry and everything you 725 00:38:27,400 --> 00:38:28,560 S12: do and the advice you have. 726 00:38:28,760 --> 00:38:30,920 S2: Yes, sir. Thank you for that. Go right ahead. 727 00:38:31,600 --> 00:38:35,279 S12: Um, yeah, I have a, uh, pre-tax IRA that was 728 00:38:35,280 --> 00:38:39,040 S12: rolled over from 401 K and I have two qualified 729 00:38:39,080 --> 00:38:41,120 S12: charities in there, and one of them is a is 730 00:38:41,200 --> 00:38:45,120 S12: a mission. And I want to send them, uh, some 731 00:38:45,120 --> 00:38:49,040 S12: money for a special project. And I can either send 732 00:38:49,040 --> 00:38:51,479 S12: it out of my checking account or I can send 733 00:38:51,480 --> 00:38:53,800 S12: it from. And my thought is, send it from the 734 00:38:54,920 --> 00:38:58,200 S12: IRA and take the money from my checking account and 735 00:38:58,200 --> 00:39:01,000 S12: put it into a Roth IRA. Does that make sense? 736 00:39:01,640 --> 00:39:05,430 S2: Yeah. So you would use the qualified charitable Uh, deduction 737 00:39:05,430 --> 00:39:08,110 S2: or contribution? Qualified charitable contribution? 738 00:39:09,030 --> 00:39:09,510 S12: Yes. 739 00:39:09,590 --> 00:39:11,030 S2: Are you familiar with that term? 740 00:39:11,469 --> 00:39:15,390 S12: Yes. I have two set up there. Um, and I 741 00:39:15,390 --> 00:39:17,350 S12: have one that goes to the church, and I have 742 00:39:17,350 --> 00:39:19,350 S12: a mission set up in there. Okay. 743 00:39:19,390 --> 00:39:20,069 S2: And I would. 744 00:39:20,150 --> 00:39:22,310 S12: I would send the money from that. I thought I 745 00:39:22,310 --> 00:39:25,509 S12: would send the money, you know, with no tax, and 746 00:39:25,510 --> 00:39:28,189 S12: then take the money out of my checking account and 747 00:39:28,190 --> 00:39:30,150 S12: move that into a Roth IRA. 748 00:39:30,630 --> 00:39:33,190 S2: Yeah, I like that a lot, because that qualified charitable 749 00:39:33,190 --> 00:39:34,989 S2: distribution is going to allow you to get that money 750 00:39:34,989 --> 00:39:37,670 S2: straight to the charity. You're not you won't recognize it 751 00:39:37,670 --> 00:39:39,390 S2: as income, which is the only way to get it 752 00:39:39,390 --> 00:39:43,430 S2: out without paying tax on it. Uh, the only, uh, 753 00:39:43,430 --> 00:39:46,270 S2: issue about the Roth I love you back filling out 754 00:39:46,270 --> 00:39:49,150 S2: of your checking the same amount and getting it back 755 00:39:49,150 --> 00:39:52,870 S2: into a tax free environment. The only question would just 756 00:39:52,870 --> 00:39:54,709 S2: be whether you have earned income. 757 00:39:55,270 --> 00:39:57,350 S12: No. I'm retired. Social security. 758 00:39:57,710 --> 00:39:59,549 S2: Yeah. So you would not be able to make a 759 00:39:59,550 --> 00:40:03,780 S2: contribution to a Roth without earned income. So that's money 760 00:40:03,780 --> 00:40:06,500 S2: you receive by working has to come from a job 761 00:40:06,500 --> 00:40:11,700 S2: or running a business. Wages. Salaries. Commissions. Bonuses. Self-Employment. Income. 762 00:40:12,060 --> 00:40:15,899 S2: Social security. Pensions. Investment. Earnings. Those do not count as 763 00:40:15,900 --> 00:40:18,420 S2: earned income. So you wouldn't be able to make a 764 00:40:18,420 --> 00:40:21,700 S2: new Roth IRA contribution without earned income. 765 00:40:22,340 --> 00:40:25,219 S12: That's great information. And that solves my dilemma. 766 00:40:25,580 --> 00:40:29,060 S2: Okay. Appreciate your call, David. Glad we could be of 767 00:40:29,060 --> 00:40:32,100 S2: help to you today. Lord bless you. Let's go to Virginia. Donna. 768 00:40:32,140 --> 00:40:32,700 S2: Go ahead. 769 00:40:33,940 --> 00:40:36,860 S13: Hi. Uh, I have not heard you talk about an 770 00:40:36,860 --> 00:40:41,660 S13: asset protection trust, and I'm wondering if you could speak 771 00:40:41,700 --> 00:40:44,900 S13: about that and what the advantages are. We have a 772 00:40:44,900 --> 00:40:49,380 S13: revocable living trust, and my husband's been diagnosed in 2022 773 00:40:49,420 --> 00:40:53,180 S13: with Alzheimer's. So, you know, I'm concerned about protecting our 774 00:40:53,180 --> 00:40:54,739 S13: assets for the future. 775 00:40:55,060 --> 00:40:59,820 S2: Yeah. Very good. Um, so sorry to hear about his diagnosis. Um, 776 00:41:00,060 --> 00:41:03,460 S2: the asset protection trust is really designed to shield assets 777 00:41:03,460 --> 00:41:08,940 S2: from future creditors, lawsuits or long term care spend down rules, 778 00:41:08,940 --> 00:41:11,219 S2: and that's probably what you're getting at here. So it's 779 00:41:11,260 --> 00:41:14,460 S2: a a legal boundary, if you will, around your estate. 780 00:41:14,580 --> 00:41:17,779 S2: It's not for hiding assets. You can't move money into 781 00:41:17,780 --> 00:41:20,219 S2: a trust after you know you're being sued or going 782 00:41:20,219 --> 00:41:23,060 S2: into a nursing home. The courts look back several years. 783 00:41:23,340 --> 00:41:26,380 S2: So it's really a proactive planning tool, not a last 784 00:41:26,380 --> 00:41:29,940 S2: minute tool. Um, and you usually give up control. So 785 00:41:29,940 --> 00:41:33,420 S2: to get strong protection it has to be irrevocable, meaning 786 00:41:33,420 --> 00:41:36,900 S2: you give up ownership and can't easily change it. And 787 00:41:36,900 --> 00:41:40,940 S2: that's often the biggest sticking point for people. Why does it, 788 00:41:40,980 --> 00:41:43,219 S2: you know, who does it help? Well, it can make 789 00:41:43,219 --> 00:41:45,979 S2: sense if you have significant wealth or you're concerned about 790 00:41:45,980 --> 00:41:51,300 S2: future creditors, or if you're doing Medicaid planning years in advance. 791 00:41:51,420 --> 00:41:54,460 S2: You know, for the average person, I would say a simple, 792 00:41:54,460 --> 00:41:58,819 S2: revocable living trust and good insurance often provides all the 793 00:41:58,820 --> 00:42:02,609 S2: protection you need. Um, so I think it would just 794 00:42:02,610 --> 00:42:06,450 S2: be a matter of you, uh, getting with an estate attorney, 795 00:42:06,489 --> 00:42:10,010 S2: perhaps someone who's an elder care specialist. An elder care 796 00:42:10,010 --> 00:42:13,370 S2: attorney who can just walk through your situation and see, 797 00:42:13,410 --> 00:42:16,810 S2: given where you are in this stage of life, with 798 00:42:16,810 --> 00:42:21,089 S2: the diagnosis already in hand and the estate that you have, 799 00:42:21,370 --> 00:42:25,450 S2: what can be done for Medicaid, you know, planning and 800 00:42:25,450 --> 00:42:29,049 S2: protection at this point that, you know, would pass all 801 00:42:29,090 --> 00:42:31,609 S2: of the tests with regard to the lookback periods and 802 00:42:31,610 --> 00:42:35,810 S2: so forth. So essentially, that's what it is. Um, you know, 803 00:42:35,850 --> 00:42:39,730 S2: it's a bit complicated, can be expensive, but for the 804 00:42:39,730 --> 00:42:42,810 S2: right situation, it is a very legitimate planning tool. And 805 00:42:42,810 --> 00:42:45,050 S2: I think ultimately you just need to get some legal 806 00:42:45,050 --> 00:42:47,569 S2: counsel on it. I hope that helps. Thanks for being 807 00:42:47,570 --> 00:42:50,290 S2: on the program today. Hey, faith in Finance Live is 808 00:42:50,290 --> 00:42:53,330 S2: a ministry of Faith, Fi and Moody Radio. Thanks to 809 00:42:53,330 --> 00:42:55,690 S2: my team today and we'll see you tomorrow. Come back 810 00:42:55,690 --> 00:42:56,850 S2: and join us then. Bye bye.