1 00:00:08,520 --> 00:00:11,520 S1: Why do we give? Is it simply because Scripture tells 2 00:00:11,520 --> 00:00:15,760 S1: us to? Or is something deeper meant to shape our generosity? Hi, 3 00:00:15,760 --> 00:00:19,079 S1: I'm Rob West. For many of us, giving can quietly 4 00:00:19,079 --> 00:00:23,200 S1: become a calculation, an obligation, or even a source of pressure. 5 00:00:23,320 --> 00:00:26,360 S1: But the Bible tells a far better story, one where 6 00:00:26,400 --> 00:00:30,440 S1: generosity flows not from guilt or fear, but from grace. 7 00:00:30,640 --> 00:00:34,360 S1: Today we'll explore why Christians give and how the gospel 8 00:00:34,360 --> 00:00:37,839 S1: reshapes generosity from the inside out. And then it's on 9 00:00:37,840 --> 00:00:42,400 S1: to your calls at 800 525 7000. This is faith 10 00:00:42,400 --> 00:00:50,040 S1: and finance. Live. Biblical wisdom for your financial decisions. We 11 00:00:50,040 --> 00:00:53,080 S1: all want to be generous. Very few people would say, 12 00:00:53,080 --> 00:00:56,280 S1: I don't want to give. Most of us genuinely desire 13 00:00:56,280 --> 00:00:58,959 S1: to live with open hands and a willing heart. But 14 00:00:58,960 --> 00:01:03,370 S1: if we're honest, generosity doesn't always come easily. We run 15 00:01:03,370 --> 00:01:06,569 S1: the numbers. We think about what's coming next. We worry 16 00:01:06,569 --> 00:01:10,250 S1: about whether our gift will really make a difference. Sometimes 17 00:01:10,250 --> 00:01:14,090 S1: we even reduce generosity to a math problem, something we'll 18 00:01:14,090 --> 00:01:17,690 S1: do once everything else feels secure. And beneath all of 19 00:01:17,690 --> 00:01:20,850 S1: those questions is a deeper one. Why do we give 20 00:01:20,850 --> 00:01:24,970 S1: in the first place? If giving feels like just another obligation, 21 00:01:24,970 --> 00:01:28,770 S1: it will always feel heavy. But Scripture starts the conversation 22 00:01:28,770 --> 00:01:32,250 S1: about giving somewhere much deeper than our budgets. It begins 23 00:01:32,250 --> 00:01:36,130 S1: with our identity. Paul writes in Ephesians two eight, for 24 00:01:36,130 --> 00:01:38,850 S1: by grace you have been saved through faith, and this 25 00:01:38,850 --> 00:01:41,730 S1: is not your own doing. It is the gift of God. 26 00:01:42,050 --> 00:01:45,330 S1: Before you ever give a dollar, before you ever decide 27 00:01:45,330 --> 00:01:48,809 S1: how much or how often, remember this truth. You are 28 00:01:48,810 --> 00:01:52,490 S1: already living on a gift. You've been given mercy when 29 00:01:52,490 --> 00:01:56,930 S1: you deserved judgment, forgiveness when you were guilty. Adoption when 30 00:01:56,930 --> 00:02:00,350 S1: you were far from God. Daily bread, new life, a 31 00:02:00,350 --> 00:02:03,870 S1: future secured in Christ. Everything about your life as a 32 00:02:03,870 --> 00:02:09,549 S1: believer begins with grace. And when grace takes root, generosity follows, 33 00:02:09,550 --> 00:02:14,750 S1: because ultimately giving is an overflow of grace. Paul expands 34 00:02:14,750 --> 00:02:17,190 S1: on this in one of the most beautiful summaries of 35 00:02:17,190 --> 00:02:20,070 S1: the gospel when he writes, you know the grace of 36 00:02:20,070 --> 00:02:23,110 S1: our Lord Jesus Christ, that though he was rich, yet 37 00:02:23,110 --> 00:02:26,149 S1: for your sake he became poor, so that you by 38 00:02:26,150 --> 00:02:30,950 S1: his poverty might become rich. That's not just poetic language. 39 00:02:30,950 --> 00:02:35,070 S1: That's the pattern of Christian generosity. Jesus didn't cling to 40 00:02:35,110 --> 00:02:39,150 S1: his position, his comfort, or his glory. Philippians two seven 41 00:02:39,150 --> 00:02:45,710 S1: tells us, he emptied himself. He stepped into our poverty spiritually, relationally, eternally, 42 00:02:45,710 --> 00:02:49,269 S1: so that we could share in his riches. The gospel 43 00:02:49,270 --> 00:02:53,630 S1: isn't just about forgiveness from sin. It's about transformation into 44 00:02:53,669 --> 00:02:56,520 S1: a people who reflect the heart of the giver. That 45 00:02:56,520 --> 00:02:59,840 S1: means our giving is never about earning God's favor. It's 46 00:02:59,840 --> 00:03:03,200 S1: never a way to prove our faith or secure his blessing. 47 00:03:03,240 --> 00:03:07,480 S1: Scripture is clear. We love because he first loved us. 48 00:03:07,800 --> 00:03:11,160 S1: And the same is true with generosity. We give because 49 00:03:11,160 --> 00:03:14,600 S1: he first gave. That's why Paul can say in second 50 00:03:14,600 --> 00:03:17,720 S1: Corinthians nine seven, each one must give, as he has 51 00:03:17,720 --> 00:03:21,720 S1: decided in his heart, not reluctantly or under compulsion, for 52 00:03:21,720 --> 00:03:26,360 S1: God loves a cheerful giver. Grace changes the tone of generosity. 53 00:03:26,400 --> 00:03:29,840 S1: It moves, giving from a place of pressure to privilege. 54 00:03:29,919 --> 00:03:33,520 S1: From I have to to, I get to. When grace 55 00:03:33,520 --> 00:03:36,960 S1: is the motivation. Giving is no longer about fear. Fear 56 00:03:36,960 --> 00:03:41,520 S1: of not having enough. Fear of the future, fear of loss. Instead, 57 00:03:41,520 --> 00:03:45,760 S1: generosity becomes an act of trust. It becomes a declaration 58 00:03:45,760 --> 00:03:48,880 S1: that God is our provider, not our bank account. That 59 00:03:48,880 --> 00:03:52,520 S1: our security is anchored in Christ, not in our margins. 60 00:03:52,720 --> 00:03:55,820 S1: And this kind of generosity isn't limited to people with 61 00:03:55,820 --> 00:04:01,060 S1: large incomes or substantial assets. Every believer, regardless of their 62 00:04:01,060 --> 00:04:05,780 S1: financial situation, has received the riches of Christ, which means 63 00:04:05,780 --> 00:04:09,900 S1: every believer has something to give. Generosity can look like 64 00:04:09,900 --> 00:04:13,380 S1: a shared meal, a word of encouragement. An open door. 65 00:04:13,580 --> 00:04:17,700 S1: Time invested in someone else. A financial gift that stretches 66 00:04:17,700 --> 00:04:21,220 S1: us a bit. A quiet sacrifice no one else sees. 67 00:04:21,339 --> 00:04:25,779 S1: When grace takes root, open hands follow. And that's the key. 68 00:04:25,980 --> 00:04:29,700 S1: We don't give to become generous people. We give because 69 00:04:29,740 --> 00:04:34,140 S1: God has already been generous with us. Generosity doesn't begin 70 00:04:34,140 --> 00:04:37,540 S1: with what we give. It begins with what we've received. 71 00:04:37,540 --> 00:04:41,339 S1: When grace becomes the foundation, giving stops feeling like pressure 72 00:04:41,339 --> 00:04:45,140 S1: and starts becoming a joy. That's really the heartbeat behind 73 00:04:45,180 --> 00:04:48,780 S1: our ultimate treasure, the 21 day devotional I wrote to 74 00:04:48,820 --> 00:04:53,669 S1: help you connect the gospel to everyday financial decisions, especially 75 00:04:53,670 --> 00:04:56,750 S1: when it comes to generosity. It's designed to help you 76 00:04:56,790 --> 00:05:00,350 S1: slow down, reflect on God's grace, and let that grace 77 00:05:00,350 --> 00:05:05,070 S1: reshape how you manage money, time, and resources. It comes 78 00:05:05,070 --> 00:05:07,030 S1: out in a few weeks, but you can go ahead 79 00:05:07,029 --> 00:05:11,150 S1: and pre-order your copy today at Faith. Com just click 80 00:05:11,150 --> 00:05:14,750 S1: shop or receive it automatically when you become a Faith 81 00:05:14,750 --> 00:05:19,110 S1: five partner. You can head to faith. Com to learn more. 82 00:05:19,310 --> 00:05:20,310 S1: We'll be right back. 83 00:05:33,870 --> 00:05:36,909 S2: The opinions offered during this program represent the personal or 84 00:05:36,910 --> 00:05:41,430 S2: professional opinions of the participants, given for informational purposes only. 85 00:05:41,550 --> 00:05:44,950 S2: Any information provided is not intended to replace advice from 86 00:05:44,950 --> 00:05:49,429 S2: a financial, medical, legal, or other professional who understands your 87 00:05:49,430 --> 00:05:50,950 S2: specific situation. 88 00:05:57,920 --> 00:05:59,599 S1: Well. So glad to have you with us today on 89 00:05:59,600 --> 00:06:02,760 S1: Faith and finance live, I'm Rob West. Well, just a 90 00:06:02,760 --> 00:06:05,839 S1: few moments. We'll begin taking your calls and questions today. 91 00:06:05,839 --> 00:06:08,440 S1: So if you'd like to get in on the conversation, 92 00:06:08,440 --> 00:06:12,920 S1: we'd love to have you just call 800 525 7000. 93 00:06:12,960 --> 00:06:15,320 S1: We've got some lines open today. Looking forward to hearing 94 00:06:15,320 --> 00:06:19,960 S1: your questions. Anything financial in play, living, giving, owing or 95 00:06:20,000 --> 00:06:23,919 S1: growing God's money? Uh, and anything around those big ideas 96 00:06:23,920 --> 00:06:26,839 S1: which are really the only uses of money, uh, call 97 00:06:26,839 --> 00:06:31,920 S1: right now. Again, that number 800 525 7000. And we'll 98 00:06:31,920 --> 00:06:34,159 S1: dive into those here in just a moment. Uh, first 99 00:06:34,160 --> 00:06:36,920 S1: in the news today, as tax season kicks off, families 100 00:06:36,920 --> 00:06:40,760 S1: with minor children can elect to open Trump accounts on 101 00:06:40,760 --> 00:06:47,200 S1: their 2025 tax returns created under President Donald Trump's recent legislation. 102 00:06:47,200 --> 00:06:51,540 S1: These accounts are meant to jumpstart wealth building for children 103 00:06:51,540 --> 00:06:56,860 S1: born between 2025 and 2028 with a one time $1,000 104 00:06:56,860 --> 00:07:01,100 S1: Treasury deposit. That's the Department of the Treasury. This is 105 00:07:01,100 --> 00:07:06,739 S1: the first window to claim, but starting mid 2026, families 106 00:07:06,740 --> 00:07:10,740 S1: can also apply online at Trump accounts. Dot gov, which 107 00:07:10,780 --> 00:07:13,820 S1: by the way is a great website that explains what 108 00:07:13,820 --> 00:07:17,220 S1: these are and they'll add more information over time. Now 109 00:07:17,260 --> 00:07:24,140 S1: additional matching funds may later be available from participating employers, 110 00:07:24,380 --> 00:07:29,340 S1: and some families who don't qualify for Treasury contributions may 111 00:07:29,340 --> 00:07:33,740 S1: receive smaller grants from private philanthropies. We've heard Michael Dell 112 00:07:33,780 --> 00:07:36,260 S1: and others say they're going to get in on the mix, 113 00:07:36,260 --> 00:07:40,660 S1: perhaps even for those that were born before the period 114 00:07:40,660 --> 00:07:44,220 S1: where this applies. Now, to claim in 2025, parents can 115 00:07:44,220 --> 00:07:51,750 S1: submit IRS form 4547 as in president uh 45 and 47. 116 00:07:51,750 --> 00:07:55,430 S1: When filing their return. The Treasury will then follow up 117 00:07:55,430 --> 00:07:59,790 S1: to authenticate and activate the account. Advisers warn that skipping 118 00:07:59,790 --> 00:08:03,110 S1: that form could mean missing out on free money, especially 119 00:08:03,110 --> 00:08:08,070 S1: for lower income families who may not file. So again. Uh, 120 00:08:08,070 --> 00:08:12,710 S1: the form is 4547. This is to open your account. 121 00:08:12,710 --> 00:08:16,910 S1: You'll fill that out with your 2025 return. And all 122 00:08:16,910 --> 00:08:21,190 S1: of these kick off in January of 2026 this summer. 123 00:08:21,430 --> 00:08:26,150 S1: Again more information available. Trump accounts.gov. Check that out when 124 00:08:26,150 --> 00:08:28,910 S1: you have time. All right let's dive into your questions today. 125 00:08:28,910 --> 00:08:31,390 S1: We've got some calls coming in but still lines open. 126 00:08:31,390 --> 00:08:33,670 S1: So if you have a financial question today go ahead 127 00:08:33,670 --> 00:08:38,189 S1: and call right now. Again that number 800 525 7000. 128 00:08:38,230 --> 00:08:43,030 S1: That's 800 525 7000. Let's dive in today. We'll begin 129 00:08:43,030 --> 00:08:44,309 S1: with Becky. Go right ahead. 130 00:08:45,510 --> 00:08:48,560 S3: Hi. Thank you so much for taking my call. Of course. 131 00:08:49,080 --> 00:08:52,480 S3: Just truly blessed by all the information you provide us. 132 00:08:52,520 --> 00:08:57,200 S3: It's amazing. Thank you so qcds. I learned a lot 133 00:08:57,200 --> 00:09:01,400 S3: about Qcds through you and I'm wondering, does any 501 134 00:09:01,400 --> 00:09:03,040 S3: C qualify for a QCD? 135 00:09:04,040 --> 00:09:06,640 S1: Ah yeah. Great question. Yeah. So it's a if it's 136 00:09:06,640 --> 00:09:10,760 S1: a 500 and 1C3 it should qualify now. Um you 137 00:09:10,760 --> 00:09:13,720 S1: will not be able I mean certain rules apply here, 138 00:09:13,720 --> 00:09:18,000 S1: but essentially uh if it's got the IRS determination on 139 00:09:18,000 --> 00:09:20,240 S1: 500 1C3, you should be in the clear. 140 00:09:20,840 --> 00:09:25,280 S3: Okay. Perfect. And then also, I'm really thrilled to know 141 00:09:25,280 --> 00:09:30,679 S3: that the qcds will count towards my RMD when that 142 00:09:30,679 --> 00:09:34,560 S3: time comes. So just what is the best way to 143 00:09:34,600 --> 00:09:38,439 S3: estimate my upcoming RMD? It will be 3 or 4 144 00:09:38,440 --> 00:09:41,240 S3: years from now. Well two years from now. But just wondering. 145 00:09:41,640 --> 00:09:45,780 S1: Yeah. And so what's the question specifically about that required requirement. 146 00:09:46,059 --> 00:09:48,620 S3: What's the best? What's the best way to estimate my 147 00:09:48,660 --> 00:09:49,700 S3: upcoming RMB? 148 00:09:50,140 --> 00:09:53,380 S1: Yes. Very good. So if you could determine what you 149 00:09:53,380 --> 00:09:56,780 S1: expect the balance to be, uh, and then use the 150 00:09:56,780 --> 00:10:03,020 S1: IRS uniform lifetime table, which is available at irs.gov. What 151 00:10:03,020 --> 00:10:06,540 S1: they will do is they will give you the required minimum, 152 00:10:06,580 --> 00:10:10,620 S1: what they call factor. So at age 73 this year 153 00:10:10,620 --> 00:10:14,780 S1: the factor is 26.5. So if you were to take 154 00:10:14,780 --> 00:10:17,980 S1: the balance that you estimate the account to be worth 155 00:10:18,179 --> 00:10:22,220 S1: as of December 31st of the year, you turn 73. 156 00:10:22,220 --> 00:10:24,380 S1: And obviously you're not going to know exactly what it is, 157 00:10:24,380 --> 00:10:27,420 S1: but you can take a guess and then divide that 158 00:10:27,420 --> 00:10:31,780 S1: number by 26.5, at least this year's number. And that 159 00:10:31,780 --> 00:10:34,980 S1: that factor changes every year. But but slightly. That's going 160 00:10:35,020 --> 00:10:37,660 S1: to give you a rough idea of what that required 161 00:10:37,660 --> 00:10:41,060 S1: minimum will be for that year when that comes. And again, 162 00:10:41,059 --> 00:10:45,110 S1: to your point, because you'll be over 70.5. You would 163 00:10:45,110 --> 00:10:50,350 S1: then qualify for that, um, qualified charitable distribution, which goes 164 00:10:50,350 --> 00:10:54,070 S1: to a 501 public charity. And, um, you know, you 165 00:10:54,070 --> 00:10:57,150 S1: could satisfy the required minimum and give the money direct 166 00:10:57,150 --> 00:11:00,750 S1: to charity and nothing gets added to your taxable income, 167 00:11:00,750 --> 00:11:04,430 S1: which is really the only case where that's possible. Every 168 00:11:04,429 --> 00:11:06,990 S1: other means by which you would get money out of 169 00:11:06,990 --> 00:11:10,030 S1: an IRA would require that you add it to your 170 00:11:10,030 --> 00:11:11,510 S1: taxable income for the year. 171 00:11:12,150 --> 00:11:17,750 S3: Oh, yeah. This that information just unbelievably helpful, just helped 172 00:11:17,750 --> 00:11:20,950 S3: us so much with saving on taxes. Plus we can 173 00:11:20,950 --> 00:11:24,110 S3: support the ministries that we want to support anyway. Yeah. 174 00:11:24,150 --> 00:11:25,510 S3: Including faith. 175 00:11:26,350 --> 00:11:28,670 S1: Awesome. We'll take it. Yeah yeah. 176 00:11:28,790 --> 00:11:31,790 S3: Yeah. There it is. And then, uh, just another question 177 00:11:31,790 --> 00:11:37,110 S3: I had concerning IRAs. Um, so for tax purposes, we 178 00:11:37,110 --> 00:11:40,350 S3: probably will have to do an IRA this year for 179 00:11:40,350 --> 00:11:43,610 S3: my husband. I have two already, but we want to 180 00:11:43,610 --> 00:11:47,170 S3: set up one for him. Where's the best place to 181 00:11:47,210 --> 00:11:51,130 S3: set up an IRA? That would only be the $8,000 182 00:11:51,130 --> 00:11:52,770 S3: that the max that we can put in. 183 00:11:53,010 --> 00:11:56,850 S1: Yeah. How would you expect to invest that money once 184 00:11:56,850 --> 00:11:59,210 S1: it goes in? Would you just pick some mutual funds 185 00:11:59,210 --> 00:12:01,929 S1: or exchange traded funds, or are you looking for a 186 00:12:01,929 --> 00:12:03,530 S1: more automated solution? 187 00:12:04,330 --> 00:12:10,810 S3: Probably more automated. I, I wish I really understood the market. And, 188 00:12:10,970 --> 00:12:13,810 S3: you know, most of my teaching has come from you. 189 00:12:14,250 --> 00:12:17,530 S3: So thank you for RFD qmc for. 190 00:12:18,370 --> 00:12:20,730 S1: All those alphabet soup, right? 191 00:12:20,730 --> 00:12:25,850 S3: Yeah, yeah. Big time. But basically it's just really for 192 00:12:25,890 --> 00:12:31,250 S3: to eliminate the possibility of paying additional taxes is why 193 00:12:31,250 --> 00:12:36,089 S3: we're doing it. Not necessarily looking for, you know, a 194 00:12:36,130 --> 00:12:39,210 S3: huge return. We have a small one set up for 195 00:12:39,210 --> 00:12:42,900 S3: him at a bank, but it's paying like no interest 196 00:12:42,900 --> 00:12:46,020 S3: at all. And I'm like, I don't know if that's 197 00:12:46,020 --> 00:12:47,020 S3: the best choice. 198 00:12:47,059 --> 00:12:49,780 S1: Yeah, yeah. I like the idea of you all dropping 199 00:12:49,780 --> 00:12:53,900 S1: that into either maybe a balanced mutual fund. Balanced meaning 200 00:12:53,900 --> 00:12:57,339 S1: a balance between stocks and bonds. And you could use 201 00:12:57,340 --> 00:12:59,780 S1: a robo advisor. And if you did that, you might 202 00:12:59,780 --> 00:13:04,580 S1: want to open an account at the Schwab Intelligent Portfolios. Uh, 203 00:13:04,580 --> 00:13:09,100 S1: it's Charles Schwab, so it's a large national firm. Good reputation, 204 00:13:09,100 --> 00:13:13,540 S1: low cost. And the intelligent portfolios is the division of Schwab, 205 00:13:13,540 --> 00:13:16,460 S1: where they do the the robo solution, which is basically 206 00:13:16,460 --> 00:13:19,980 S1: means on a very low cost basis, they're going to 207 00:13:20,020 --> 00:13:23,420 S1: ask you a bunch of questions through the website, and 208 00:13:23,420 --> 00:13:28,100 S1: then they'll build a portfolio using just a basket of, 209 00:13:28,100 --> 00:13:31,660 S1: of investments called exchange traded funds. But you'd capture the 210 00:13:31,660 --> 00:13:34,380 S1: broad moves of the market with that. And that can 211 00:13:34,380 --> 00:13:37,340 S1: be a great way to get started with a small IRA. 212 00:13:37,700 --> 00:13:41,790 S1: So the Schwab Intelligent portfolios. Another approach would be you'd 213 00:13:41,790 --> 00:13:44,990 S1: open just a straight IRA at Charles Schwab outside of 214 00:13:44,990 --> 00:13:48,230 S1: the intelligent portfolios. And then if you wanted to use 215 00:13:48,230 --> 00:13:52,069 S1: only faith based mutual funds or exchange traded funds, then 216 00:13:52,070 --> 00:13:55,429 S1: you could go to our website, click on the show 217 00:13:55,630 --> 00:13:57,829 S1: and you'll see a list of of those faith based 218 00:13:57,830 --> 00:14:01,910 S1: investing providers. In either case, I think the idea is 219 00:14:01,910 --> 00:14:04,710 S1: just to get that money working for you in a 220 00:14:04,710 --> 00:14:06,790 S1: way that's, you know, going to allow it to begin 221 00:14:06,790 --> 00:14:10,070 S1: compounding and growing. And either Schwab or Fidelity would be 222 00:14:10,070 --> 00:14:13,350 S1: a great place to get started. So hopefully that helps. Hey, 223 00:14:13,350 --> 00:14:15,630 S1: let's do this, Becky. Stay on the line. I want 224 00:14:15,670 --> 00:14:18,910 S1: to send you a copy of the Sound Mind Investing Handbook. 225 00:14:19,150 --> 00:14:21,590 S1: I think that'll just help to familiarize you with a 226 00:14:21,590 --> 00:14:23,790 S1: few more of these terms. Get you pointed in the 227 00:14:23,790 --> 00:14:33,070 S1: right direction. Stay on the line. We'll be right back. Hey, 228 00:14:33,070 --> 00:14:35,550 S1: great to have you with us today on faith in finance. 229 00:14:35,590 --> 00:14:37,970 S1: I'm Rob West. We're taking your calls and questions. We've 230 00:14:37,970 --> 00:14:40,250 S1: got a few lines open, so if there's something you've 231 00:14:40,250 --> 00:14:42,690 S1: been wrestling with in your financial life, you'd like to 232 00:14:42,690 --> 00:14:45,530 S1: get a second or third or fourth opinion, we're here. 233 00:14:45,530 --> 00:14:47,330 S1: We'll help you think about it through the lens of 234 00:14:47,330 --> 00:14:50,570 S1: biblical wisdom and give you some practical advice. Call right now. 235 00:14:50,570 --> 00:14:53,090 S1: The team is standing by. They're ready for you. 800 236 00:14:53,250 --> 00:15:00,730 S1: 525 7000 your financial questions today. 800 525 7000. Coming up, uh, 237 00:15:00,730 --> 00:15:03,810 S1: in the final segment today, Bob Dole stops by. Bob 238 00:15:03,810 --> 00:15:07,530 S1: is our go to market. Guy manages billions in the market. 239 00:15:07,570 --> 00:15:12,770 S1: He's a regular guest on CNBC and Fox Business. He's 240 00:15:12,770 --> 00:15:16,650 S1: a Christ follower. He is a leader in faith based investing. 241 00:15:16,650 --> 00:15:19,010 S1: And he joins us at the beginning of each week 242 00:15:19,010 --> 00:15:22,210 S1: just to tell us what's moving the markets, the Dow Jones, 243 00:15:22,250 --> 00:15:27,130 S1: the S&P 500, the Nasdaq all closing higher today. Earnings 244 00:15:27,130 --> 00:15:31,530 S1: out particularly in the tech sector. Meta and Apple uh 245 00:15:31,570 --> 00:15:35,890 S1: rising ahead of their earnings reports. We'll see what those 246 00:15:36,020 --> 00:15:39,740 S1: numbers come out to be. But um earnings are what 247 00:15:39,820 --> 00:15:42,780 S1: move markets and markets liking what it's seeing. At least 248 00:15:42,780 --> 00:15:45,620 S1: today we'll get Bob's take on all of that coming 249 00:15:45,620 --> 00:15:47,860 S1: up in our final segment. In the meantime, let's get 250 00:15:47,860 --> 00:15:50,820 S1: back to the phones here. We'll head out to California. Jamie, 251 00:15:50,820 --> 00:15:52,020 S1: thanks for calling. Go ahead. 252 00:15:53,300 --> 00:15:57,700 S4: Uh, yes. Uh, I have a quick question. Uh, I 253 00:15:57,740 --> 00:16:03,740 S4: owe like, 35,000 in credit cards, and I was wondering 254 00:16:03,740 --> 00:16:06,260 S4: if it would be best for me to do the 255 00:16:06,900 --> 00:16:13,220 S4: HELOC on my home or, um, the Trinity, uh, counseling. 256 00:16:13,740 --> 00:16:17,180 S4: I've called both of them, so, uh, I just, I 257 00:16:17,220 --> 00:16:20,260 S4: don't know which is the best route to go. 258 00:16:20,740 --> 00:16:23,380 S1: Yeah. I appreciate you asking that question. You know, I'm 259 00:16:23,420 --> 00:16:26,820 S1: not a fan, Jamie, of you taking this unsecured credit 260 00:16:26,820 --> 00:16:31,180 S1: card debt and putting it onto a HELOC, where your 261 00:16:31,180 --> 00:16:35,400 S1: home becomes the collateral. Primary reason being, you know what 262 00:16:35,400 --> 00:16:38,600 S1: is unsecured. Meaning if you don't pay the bill. Because, 263 00:16:38,880 --> 00:16:40,840 S1: you know, you find yourself in a position where you're 264 00:16:40,840 --> 00:16:43,560 S1: just unable to. You have a loss of income, or 265 00:16:43,560 --> 00:16:45,960 S1: you have, you know, a major medical event and you're 266 00:16:45,960 --> 00:16:48,520 S1: not able to pay your credit cards. Although those credit 267 00:16:48,520 --> 00:16:51,600 S1: card companies have recourse, meaning they could take out a 268 00:16:51,640 --> 00:16:54,280 S1: judgment against you at the end of the day, they 269 00:16:54,280 --> 00:16:57,240 S1: can't attach your home as soon as you put that 270 00:16:57,240 --> 00:16:59,640 S1: on your house, if you're unable to pay for any 271 00:16:59,680 --> 00:17:02,480 S1: unforeseen reason. Now all of a sudden, your home is 272 00:17:02,480 --> 00:17:05,040 S1: at risk. The other issue is that even though that 273 00:17:05,040 --> 00:17:08,840 S1: interest rate comes down often, we spread those payments out 274 00:17:08,840 --> 00:17:11,680 S1: over a longer payback period. It might be 20 or 275 00:17:11,680 --> 00:17:14,680 S1: more years. And so even with that lower interest rate, 276 00:17:14,680 --> 00:17:17,680 S1: we may pay the same or more interest, even at 277 00:17:17,680 --> 00:17:20,800 S1: a lower rate. Um, it also takes the pressure off. 278 00:17:20,840 --> 00:17:22,919 S1: You know, I tend to see that, you know, when 279 00:17:22,920 --> 00:17:25,719 S1: somebody takes that credit card debt and in one fell swoop, 280 00:17:25,720 --> 00:17:28,280 S1: they move it over to a HELOC, they kind of 281 00:17:28,320 --> 00:17:31,680 S1: take a deep breath, take the pressure off, don't change 282 00:17:31,680 --> 00:17:34,129 S1: the problem that got themselves into the debt in the 283 00:17:34,130 --> 00:17:38,170 S1: first place, meaning that they're overspending beyond their means. And 284 00:17:38,170 --> 00:17:40,570 S1: then they call me back six months later and say, okay, Rob, 285 00:17:40,570 --> 00:17:42,889 S1: now I've got the HELOC and guess what? The credit 286 00:17:42,890 --> 00:17:45,570 S1: card debt is back. So all that to say, my 287 00:17:45,570 --> 00:17:49,850 S1: preferred approach would be that you use a debt management program, 288 00:17:49,850 --> 00:17:53,170 S1: what we call credit counseling. Trinity has a great long 289 00:17:53,210 --> 00:17:55,570 S1: term relationship with Moody. I think that would be a 290 00:17:55,570 --> 00:17:59,330 S1: great option. Um, we work with a similar organization here 291 00:17:59,330 --> 00:18:02,130 S1: at Faith fi that has been a partner of ours 292 00:18:02,130 --> 00:18:05,609 S1: for many years called Christian Credit Counselors. You'll find them 293 00:18:05,609 --> 00:18:09,129 S1: at Christian Credit Counselors. Org. Either one I would be 294 00:18:09,130 --> 00:18:11,930 S1: comfortable with. They're both going to offer a similar program 295 00:18:11,930 --> 00:18:16,490 S1: where you slide the programs into the credit counseling program. 296 00:18:16,690 --> 00:18:21,450 S1: The cards are temporarily closed or suspended, the interest rate 297 00:18:21,450 --> 00:18:23,970 S1: is dropped, and it's going to depend on which creditors 298 00:18:23,970 --> 00:18:28,370 S1: you have, typically between 0 and 10% right now, you're 299 00:18:28,369 --> 00:18:32,460 S1: probably 22 to 28%. So that's going to be meaningful. 300 00:18:32,580 --> 00:18:35,300 S1: And then they're going to set one level monthly payment. 301 00:18:35,300 --> 00:18:39,100 S1: That doesn't change until it's paid off. That's key because 302 00:18:39,100 --> 00:18:42,900 S1: remember a typical minimum payment for a credit card comes 303 00:18:42,900 --> 00:18:45,980 S1: down as the balance comes down because it's a percentage 304 00:18:45,980 --> 00:18:49,419 S1: of the balance. So every month you're paying a smaller 305 00:18:49,420 --> 00:18:51,859 S1: and smaller amount. Well I want you to find a 306 00:18:51,859 --> 00:18:54,780 S1: number that fits in your budget and then stay at 307 00:18:54,820 --> 00:18:57,740 S1: that so that as that balance comes down, now we're 308 00:18:57,740 --> 00:19:01,619 S1: sending a larger and larger percentage every month. When you 309 00:19:01,619 --> 00:19:05,699 S1: put all that together, the lower interest rate, the level 310 00:19:05,700 --> 00:19:09,700 S1: monthly payment, we find that folks who enter these programs 311 00:19:09,700 --> 00:19:14,740 S1: pay their debt off, on average, 80% faster. And because 312 00:19:14,740 --> 00:19:17,580 S1: you're building this into your budget and hopefully kind of 313 00:19:17,619 --> 00:19:20,580 S1: rightsizing your budget in the process because these accounts have 314 00:19:20,580 --> 00:19:23,660 S1: been closed during the payback period, I find you come 315 00:19:23,660 --> 00:19:26,780 S1: out the other end ready to never go back into 316 00:19:26,780 --> 00:19:29,380 S1: credit card debt again. But I threw a lot at 317 00:19:29,380 --> 00:19:31,200 S1: you there. Give me your thoughts on all that. 318 00:19:31,800 --> 00:19:35,960 S4: Oh, yeah, I, I I'm ready to cut those credit 319 00:19:35,960 --> 00:19:36,840 S4: cards up. 320 00:19:37,200 --> 00:19:37,840 S1: Okay. 321 00:19:38,560 --> 00:19:45,120 S4: Yeah. Uh, you know, uh, it's, uh, I'm 74 and, uh, 322 00:19:45,840 --> 00:19:49,160 S4: I want I really didn't I've been they've been trying 323 00:19:49,160 --> 00:19:54,200 S4: to get me to do another, uh, a mortgage on 324 00:19:54,200 --> 00:19:57,760 S4: my home, the place I went through. But I've refused 325 00:19:57,760 --> 00:20:01,440 S4: that because I'm trying to get it paid off before 326 00:20:01,640 --> 00:20:06,920 S4: something happens to me. Because I have a disabled son. Okay. So, yeah, 327 00:20:06,960 --> 00:20:11,199 S4: I was thinking that it's probably, probably would be best 328 00:20:11,200 --> 00:20:16,600 S4: for me to go with the Trinity because, uh, the 329 00:20:16,600 --> 00:20:20,160 S4: the payments would be much. Right now, I'm paying like 330 00:20:20,200 --> 00:20:25,560 S4: 12 to $1300 a month on my cards, and they 331 00:20:25,560 --> 00:20:30,649 S4: can get it down to 805, I think she told me. Okay, 332 00:20:30,730 --> 00:20:34,970 S4: well like whereas like the HELOC, then I'm going to 333 00:20:34,970 --> 00:20:38,369 S4: be putting more money on my house. And I really 334 00:20:38,369 --> 00:20:40,010 S4: didn't want to do that either. 335 00:20:40,330 --> 00:20:42,770 S1: I would concur wholeheartedly. So I think you're on the 336 00:20:42,770 --> 00:20:46,450 S1: right path here. I would affirm that direction over the HELOC. 337 00:20:46,609 --> 00:20:47,970 S1: That's the way I would go. Jamie. 338 00:20:48,650 --> 00:20:51,570 S4: Yeah. Okay, honey, thank you very much. 339 00:20:51,609 --> 00:20:54,729 S1: You're welcome. Call anytime. Thanks for being on the program today. Uh, 340 00:20:54,730 --> 00:20:57,570 S1: let's see, let's head to, uh, Mississippi Lee. Go ahead. 341 00:20:59,290 --> 00:21:01,770 S5: Thank you for taking my call. Of course, I have 342 00:21:01,770 --> 00:21:04,370 S5: the age old question of do I retire early or 343 00:21:04,369 --> 00:21:08,170 S5: do I wait to retirement age? Currently 65, having taken 344 00:21:08,170 --> 00:21:14,730 S5: Medicare this month as I turned 65, I am seeking, uh, 345 00:21:14,890 --> 00:21:19,490 S5: you know what my position should be currently on on 346 00:21:19,530 --> 00:21:23,610 S5: retirement early versus waiting two more years. Okay. 347 00:21:25,010 --> 00:21:28,020 S1: Yeah. When you're talking about taking retirement. You're talking about 348 00:21:28,020 --> 00:21:32,500 S1: specifically taking Social Security two years early, or are you 349 00:21:33,020 --> 00:21:34,740 S1: wrestling with other things as well? 350 00:21:36,260 --> 00:21:37,859 S5: Social security? Exactly. 351 00:21:38,180 --> 00:21:40,899 S1: Okay. Very good. All right. Let's do this. Lee, I'd 352 00:21:40,900 --> 00:21:43,500 S1: love to talk through this with you. And, um, you know, 353 00:21:43,540 --> 00:21:46,460 S1: it's a it's an important decision, and it has some 354 00:21:46,460 --> 00:21:49,060 S1: pretty significant implications because you're going to lock in that 355 00:21:49,060 --> 00:21:51,940 S1: reduced payment if you take it early. So we'll talk 356 00:21:51,940 --> 00:21:54,620 S1: about that right after the break. Lines are open 800 357 00:21:54,619 --> 00:22:05,260 S1: 525 7000. Stay with us. Great to have you with 358 00:22:05,260 --> 00:22:07,820 S1: us today on Faith and finance live. I'm Rob West. 359 00:22:07,820 --> 00:22:12,180 S1: We're taking your calls and questions. Uh, 800 525 7000. 360 00:22:12,220 --> 00:22:14,939 S1: We've got some lines open today you can call right now. Uh, 361 00:22:14,940 --> 00:22:18,180 S1: before the break, we were talking to Lee and Mississippi. 362 00:22:18,220 --> 00:22:23,100 S1: He's 65, thinking about retiring early, currently on Medicare, wondering 363 00:22:23,100 --> 00:22:25,800 S1: specifically about whether it's a good idea to take Social 364 00:22:25,800 --> 00:22:29,080 S1: Security a couple of years early. He has no debt. 365 00:22:29,119 --> 00:22:32,560 S1: House is paid off worth about 700,000. He's got several 366 00:22:32,560 --> 00:22:36,920 S1: Roth IRAs and some gold. Expecting an inheritance later this 367 00:22:36,920 --> 00:22:41,439 S1: month of about 100,000. And he's got an emergency fund. Um, 368 00:22:41,440 --> 00:22:44,360 S1: if you were to go ahead and take early retirement 369 00:22:44,359 --> 00:22:47,480 S1: right now, how would you pay your bills? Lee, if 370 00:22:47,480 --> 00:22:50,399 S1: you didn't take Social Security, would that mean you'd have 371 00:22:50,400 --> 00:22:53,359 S1: to begin drawing from your IRAs? 372 00:22:54,960 --> 00:22:57,479 S5: That would be correct. That's what we would have to do. 373 00:22:57,760 --> 00:23:00,680 S1: Okay. And so let's say, you know, the gold obviously 374 00:23:00,680 --> 00:23:03,119 S1: is illiquid. But let's say we were to take the 375 00:23:03,119 --> 00:23:06,399 S1: Roths plus the inheritance. So what you would have to 376 00:23:06,440 --> 00:23:09,320 S1: pull from would only be about 200,000. Correct. 377 00:23:10,520 --> 00:23:11,679 S5: That would be right. Yes. 378 00:23:11,720 --> 00:23:14,520 S1: Okay. And what do you all need per month? 379 00:23:16,440 --> 00:23:19,800 S5: Um, projected, uh, 4 to 5 is what we currently 380 00:23:19,800 --> 00:23:22,240 S5: are at. But, you know, obviously we could, you know, 381 00:23:23,280 --> 00:23:24,050 S5: lower that. 382 00:23:24,170 --> 00:23:27,410 S1: Yeah. And if you decided to wait. Would there be 383 00:23:27,410 --> 00:23:31,169 S1: an option of continuing to work or working part time, 384 00:23:31,170 --> 00:23:34,450 S1: or have you decided you're going to stop working? Either way, 385 00:23:34,690 --> 00:23:37,530 S1: you're just wondering whether or not to take Social Security. 386 00:23:39,690 --> 00:23:42,409 S5: Uh, no. To work is certainly an option, you know, 387 00:23:42,450 --> 00:23:44,690 S5: to continue working. And I know that I can make 388 00:23:44,690 --> 00:23:46,890 S5: a certain amount each year without penalty. 389 00:23:47,290 --> 00:23:50,610 S1: Okay. Yeah. Yeah, you sure can. Um, yeah. You know, 390 00:23:50,650 --> 00:23:52,970 S1: I think the idea here is that, you know, the 391 00:23:52,970 --> 00:23:56,810 S1: biggest risk you have is, well, among the risks in 392 00:23:56,810 --> 00:24:00,090 S1: this season of life is something called longevity risk, which 393 00:24:00,090 --> 00:24:02,810 S1: is the idea that, you know, people are living longer. 394 00:24:03,010 --> 00:24:06,250 S1: I mean, you need this money to last three decades 395 00:24:06,450 --> 00:24:10,370 S1: or more and potentially. And because none of us know 396 00:24:10,369 --> 00:24:12,370 S1: the day or the hour, the Lord would call us home. 397 00:24:12,369 --> 00:24:14,970 S1: But if you're in good health, I mean, the likelihood 398 00:24:14,970 --> 00:24:17,090 S1: that you'll live well into your 80s and beyond is 399 00:24:17,090 --> 00:24:21,050 S1: pretty high. And so given that, you know, we're talking 400 00:24:21,050 --> 00:24:22,909 S1: at when you put it all together, you're going to 401 00:24:22,910 --> 00:24:25,990 S1: have about 325,000. You are sitting on a paid off 402 00:24:25,990 --> 00:24:28,469 S1: home and that's great. That's going to keep your expenses 403 00:24:28,470 --> 00:24:30,990 S1: fairly low. And I love that you've got that six 404 00:24:30,990 --> 00:24:34,070 S1: months of emergency funds. But even if we were to, 405 00:24:34,109 --> 00:24:36,230 S1: you know, put the gold in the mix and let's 406 00:24:36,230 --> 00:24:38,550 S1: say you were to, you know, invest that a different 407 00:24:38,550 --> 00:24:42,189 S1: way where it could be more liquid. Um, you know, 4% 408 00:24:42,190 --> 00:24:46,230 S1: a year is 14,000. Um, you know, so that's only 409 00:24:46,230 --> 00:24:49,750 S1: about $1,100 a month. So if we take that plus 410 00:24:49,750 --> 00:24:54,270 S1: Social Security, we're still probably not there. I mean, perhaps 411 00:24:54,270 --> 00:24:56,550 S1: with you and your wife, if she's on a spousal 412 00:24:56,550 --> 00:24:59,149 S1: or she's got her own work record, maybe you get 413 00:24:59,150 --> 00:25:01,350 S1: to the 4000 that you're talking about, but it's going 414 00:25:01,390 --> 00:25:04,510 S1: to be close. And so I think the opportunity for 415 00:25:04,510 --> 00:25:08,109 S1: you to get that monthly check up, the Social Security check, 416 00:25:08,109 --> 00:25:10,910 S1: I mean, as high as you can so that it's 417 00:25:10,910 --> 00:25:14,149 S1: locked in and you're not taking this permanent reduction, I 418 00:25:14,150 --> 00:25:17,310 S1: think is pretty key, just given that we're talking about 419 00:25:17,350 --> 00:25:21,160 S1: a retirement nest egg of about 350,000. So I would 420 00:25:21,160 --> 00:25:23,239 S1: just probably say, and obviously I don't know all the 421 00:25:23,240 --> 00:25:27,320 S1: factors that are playing into you considering retiring at 65, 422 00:25:27,560 --> 00:25:30,760 S1: but I would just say, you know, your ability to 423 00:25:30,800 --> 00:25:34,360 S1: continue to work, get that, you know, that monthly benefit 424 00:25:34,359 --> 00:25:38,800 S1: check up, there's better inflation protection with that because that 425 00:25:38,800 --> 00:25:42,240 S1: means the the cost of living adjustments are going to 426 00:25:42,280 --> 00:25:45,679 S1: apply to the higher base benefit, which is going to 427 00:25:45,680 --> 00:25:50,600 S1: help with rising costs and allow you to continue to 428 00:25:50,640 --> 00:25:54,840 S1: let these resources grow without you having to begin to 429 00:25:54,880 --> 00:25:57,919 S1: tap into them, I think would be great. Um, you know, 430 00:25:57,960 --> 00:26:00,120 S1: obviously you have the ability to wait to age 70, 431 00:26:00,160 --> 00:26:03,520 S1: but at the very least just waiting in full until 432 00:26:03,520 --> 00:26:06,719 S1: full retirement age. I would feel a lot better about 433 00:26:06,760 --> 00:26:08,400 S1: if you said, listen, I've got a couple of million 434 00:26:08,400 --> 00:26:13,200 S1: dollars in retirement assets, then I think you'd have more flexibility. But, 435 00:26:13,240 --> 00:26:16,080 S1: you know, if you could hold off, continue to work, 436 00:26:16,080 --> 00:26:19,890 S1: cover your bills, let your retirement assets grow and let 437 00:26:19,890 --> 00:26:24,090 S1: that guaranteed income in the form of that benefit check 438 00:26:24,090 --> 00:26:27,330 S1: continue to grow with it before you lock it in. 439 00:26:27,609 --> 00:26:30,770 S1: I would just feel a lot better just given the unknowns, 440 00:26:30,930 --> 00:26:32,810 S1: you know, of this fourth quarter of life. But give 441 00:26:32,850 --> 00:26:33,850 S1: me your thoughts on that. 442 00:26:35,570 --> 00:26:39,090 S5: Well, some of my thoughts would be this, um, even 443 00:26:39,090 --> 00:26:42,609 S5: if I drew upon our investments, uh, say a couple 444 00:26:42,650 --> 00:26:46,770 S5: thousand dollars, then I'm probably looking at 50 grand to 445 00:26:46,810 --> 00:26:50,129 S5: pay myself, essentially. You know, if I'm comfortable with that 446 00:26:50,130 --> 00:26:54,010 S5: for the next two years, um, versus waiting two more 447 00:26:54,010 --> 00:26:58,369 S5: years to make an extra 300 on my Social Security check, which, 448 00:26:58,369 --> 00:27:02,090 S5: all in all, really bounces out to almost equal zero. 449 00:27:02,650 --> 00:27:06,050 S5: And and yeah, the thing I've looked at is the 450 00:27:06,050 --> 00:27:09,010 S5: average age of in Mississippi anyway, compared to the rest 451 00:27:09,010 --> 00:27:13,689 S5: of the world. And uh, it's essentially 80, 81, um, 452 00:27:13,810 --> 00:27:16,450 S5: that I see. And that has been true to my 453 00:27:16,450 --> 00:27:20,190 S5: mom and dad as well on their ages. So when 454 00:27:20,190 --> 00:27:23,270 S5: I look at those numbers, you know, I'm more of 455 00:27:23,270 --> 00:27:26,950 S5: a secure kind of guy than I am, um, taking risk. 456 00:27:27,190 --> 00:27:31,070 S5: So yeah, I think I wouldn't be comfortable drawing down 457 00:27:31,070 --> 00:27:34,310 S5: the assets, um, so much I would worry about it, 458 00:27:34,350 --> 00:27:38,310 S5: you know, seeing the totals drop. Yeah. Um, versus, uh, 459 00:27:38,310 --> 00:27:43,510 S5: them staying put. But, uh, I'm also have worked a 460 00:27:43,710 --> 00:27:46,909 S5: quite a long time, and I'm really ready to retire. But, 461 00:27:46,950 --> 00:27:49,910 S5: you know, I do enjoy working and don't plan to quit. 462 00:27:49,910 --> 00:27:55,030 S5: I think people go downhill that way. So, um, I'm 463 00:27:55,070 --> 00:27:57,630 S5: that's why I'm asking the question. You know, with where 464 00:27:57,630 --> 00:28:00,910 S5: we're at, our assets. And chances are we do want 465 00:28:00,910 --> 00:28:04,550 S5: to downsize and sell our property, uh, in the near 466 00:28:04,550 --> 00:28:07,110 S5: future because of where we're at and what's going on 467 00:28:07,109 --> 00:28:10,950 S5: around us and so forth, industries and so forth. Um, 468 00:28:11,109 --> 00:28:15,510 S5: and then we would have more money to invest, obviously. And, and, uh, 469 00:28:15,550 --> 00:28:18,880 S5: actually start over, perhaps with a new house, you know, 470 00:28:18,920 --> 00:28:21,720 S5: to finish out the tenure of our life. So with 471 00:28:21,720 --> 00:28:24,160 S5: those things in mind, that's what I'm thinking. 472 00:28:24,400 --> 00:28:26,600 S1: Yeah. No, I appreciate that. And I get where you're 473 00:28:26,600 --> 00:28:29,040 S1: coming from. If you've done the math and basically by 474 00:28:29,040 --> 00:28:31,080 S1: you waiting in full until full retirement age, you get 475 00:28:31,080 --> 00:28:34,960 S1: an extra 300 a month or 3600 a year. And 476 00:28:34,960 --> 00:28:36,879 S1: then if we were to take that, you know, and 477 00:28:36,880 --> 00:28:40,400 S1: run that out 16 years to your, uh, scenario of 478 00:28:40,400 --> 00:28:45,320 S1: age 81. Yeah, we're talking 57,600 that you would bring 479 00:28:45,320 --> 00:28:48,600 S1: in an extra funds versus what you're saying you'd need 480 00:28:48,600 --> 00:28:52,240 S1: to pull out over that same time period of your accounts. 481 00:28:52,240 --> 00:28:55,720 S1: But there's also the opportunity cost, meaning if you don't 482 00:28:55,720 --> 00:28:59,360 S1: have to pull that 50,000 out over 16 years, it 483 00:28:59,360 --> 00:29:01,920 S1: also has the ability to continue to grow and work 484 00:29:01,920 --> 00:29:04,720 S1: for you. And so you just need to to acknowledge 485 00:29:04,720 --> 00:29:08,200 S1: that as a part of this equation. Plus, if you 486 00:29:08,200 --> 00:29:11,360 S1: in fact live longer, and I realize we're talking about 487 00:29:11,360 --> 00:29:15,580 S1: bucking the trend of family history and so forth. Um, 488 00:29:15,660 --> 00:29:19,460 S1: but that's where this does become problematic, just because of 489 00:29:19,460 --> 00:29:22,100 S1: the rising cost of health care and just, you know, 490 00:29:22,140 --> 00:29:26,340 S1: not having the assets to support additional costs. If you live, 491 00:29:26,500 --> 00:29:29,740 S1: you know, into your late 80s and even your 90s, um, 492 00:29:30,020 --> 00:29:32,700 S1: you know, which is very possible, but I certainly get 493 00:29:32,740 --> 00:29:35,180 S1: what you're saying. Maybe the the right answer there is, 494 00:29:35,220 --> 00:29:38,260 S1: is a balance between the two. Where to your point, 495 00:29:38,300 --> 00:29:40,459 S1: God created us to be workers. I think we're to 496 00:29:40,460 --> 00:29:44,380 S1: be productive in service to the Lord throughout our entire lives. 497 00:29:44,380 --> 00:29:47,340 S1: That's going to look different at different seasons. And you 498 00:29:47,380 --> 00:29:50,020 S1: slowing down. There's nothing wrong with that. And maybe you 499 00:29:50,020 --> 00:29:52,660 S1: engage in service to the Lord in other ways that 500 00:29:52,660 --> 00:29:55,340 S1: may or may not involve pay, but the idea that 501 00:29:55,340 --> 00:29:59,300 S1: you would continue to work in some fashion that would 502 00:29:59,300 --> 00:30:02,459 S1: help to offset, if not fully, your monthly expenses, at 503 00:30:02,500 --> 00:30:05,620 S1: least part of it, just to lower that withdrawal rate. 504 00:30:05,620 --> 00:30:08,580 S1: Keep more of that working for you, and maybe, you know, 505 00:30:08,620 --> 00:30:11,500 S1: at least push that Social Security out, if not two years, 506 00:30:11,500 --> 00:30:14,830 S1: maybe at least one year. Maybe there's a happy middle here, 507 00:30:14,830 --> 00:30:15,870 S1: if that makes sense. 508 00:30:16,950 --> 00:30:20,830 S5: Yes. What would be, if I may ask, a reasonable 509 00:30:20,830 --> 00:30:24,750 S5: drawdown rate on against the investments. Is it still around 510 00:30:24,750 --> 00:30:25,990 S5: 3 to 4% or. 511 00:30:26,190 --> 00:30:28,870 S1: Yeah, I would say 4%. If you've got a typical 512 00:30:28,870 --> 00:30:34,310 S1: 60 over 40 portfolio, 60% fixed income, 40% stocks, I 513 00:30:34,310 --> 00:30:39,670 S1: would say 4%. So that's about 14,000 on 350,000. Recognizing 514 00:30:39,670 --> 00:30:42,070 S1: a portion of that is illiquid. But your gold is 515 00:30:42,070 --> 00:30:45,190 S1: obviously done very well the last couple of years in particular. 516 00:30:45,190 --> 00:30:48,990 S1: But yeah, I would use that 4% five at the most. Hey, 517 00:30:48,990 --> 00:30:50,630 S1: I hope that helps. Lee. Hey, stay on the line. 518 00:30:50,630 --> 00:30:53,630 S1: I want to send you a book, uh, for your retirement. 519 00:30:53,630 --> 00:31:03,230 S1: We'll be right back. Stay with us. Hey, thanks for 520 00:31:03,230 --> 00:31:05,590 S1: joining us today on Faith and Finance Live. I'm Rob 521 00:31:05,590 --> 00:31:08,590 S1: West with us today in this segment. Bob Dahl, he's 522 00:31:08,630 --> 00:31:12,880 S1: a CEO and CIO of Crossmark Global Investments. He joins 523 00:31:12,880 --> 00:31:16,080 S1: us each Monday with his investment commentary. All right, Bob. 524 00:31:16,120 --> 00:31:19,680 S1: Another week off to the races here. Maybe the, uh, 525 00:31:19,720 --> 00:31:23,240 S1: the trade and tariff, uh, talk is going to simmer 526 00:31:23,240 --> 00:31:25,479 S1: down a bit. I don't know, we'll see. But, uh, 527 00:31:25,480 --> 00:31:28,840 S1: earnings front and center once again, especially in the tech sector. Huh. 528 00:31:29,400 --> 00:31:33,800 S6: For sure. Um, I think, uh, as much as half 529 00:31:33,800 --> 00:31:37,400 S6: the S&P 500 reports this week and next. So two 530 00:31:37,440 --> 00:31:41,040 S6: big weeks and yesterday. Let's let let's hope all the 531 00:31:41,040 --> 00:31:42,840 S6: noise of the last couple of weeks on all those 532 00:31:42,840 --> 00:31:45,880 S6: other things just disappears for a while. What a mess. 533 00:31:46,080 --> 00:31:49,479 S1: Yeah. Sure is. What are you expecting, Bob? Uh, you know, 534 00:31:49,520 --> 00:31:52,480 S1: we're I think we get, uh, meta today, and maybe Apple. 535 00:31:52,480 --> 00:31:53,240 S1: Is that right? 536 00:31:53,400 --> 00:31:57,240 S6: Correct. Um, we're expecting the news to continue to be 537 00:31:57,240 --> 00:32:01,000 S6: pretty good. Uh, it's been that case so far in 538 00:32:01,000 --> 00:32:04,360 S6: earnings season, even though we're only a little more than 10% 539 00:32:04,360 --> 00:32:09,080 S6: of the way through. Uh, and reasonably forward comments by 540 00:32:09,080 --> 00:32:13,340 S6: company management's constructive as the economy, as you and I 541 00:32:13,340 --> 00:32:17,300 S6: have talked, is doing pretty well. So corporate America is 542 00:32:17,340 --> 00:32:20,780 S6: enjoying the environment and making making some profits. 543 00:32:21,260 --> 00:32:24,060 S1: Yeah. Um, where does where do we sit with the 544 00:32:24,060 --> 00:32:27,180 S1: fed in terms of the data that you're seeing and 545 00:32:27,180 --> 00:32:29,500 S1: whether that might encourage them to keep going with rate 546 00:32:29,500 --> 00:32:31,180 S1: cuts or whether we're done for a bit? 547 00:32:31,860 --> 00:32:35,180 S6: I think we're probably done for a bit, as you know, 548 00:32:35,260 --> 00:32:38,500 S6: with the economy doing a bit better. Um, and the 549 00:32:38,500 --> 00:32:42,140 S6: fed having cut the last few times, I think they'll 550 00:32:42,180 --> 00:32:45,620 S6: probably watch for a while. Of course, we have the 551 00:32:45,620 --> 00:32:50,620 S6: appointment of a new fed chair, perhaps announced this week. Uh, 552 00:32:50,620 --> 00:32:54,500 S6: and the polls on that have bounced all over the place. Um, 553 00:32:54,500 --> 00:32:57,300 S6: so it'll be interesting to watch and see what the, uh, 554 00:32:58,060 --> 00:33:01,020 S6: both the jockeying for position and the politics of it 555 00:33:01,020 --> 00:33:02,980 S6: all look like. But I think the fed is going 556 00:33:03,020 --> 00:33:05,580 S6: to be, um, on hold for a bit here. 557 00:33:05,980 --> 00:33:10,070 S1: All right. Uh, Bob, what about just the consumer and 558 00:33:10,070 --> 00:33:12,110 S1: the latest data you're seeing about the health of the 559 00:33:12,110 --> 00:33:13,550 S1: American consumer right now? 560 00:33:14,830 --> 00:33:19,630 S6: Again, pretty good, Rob. It's not uniform. Um, the higher 561 00:33:19,670 --> 00:33:25,550 S6: the income level, the more uniformly consumers have done better, uh, 562 00:33:25,550 --> 00:33:29,430 S6: down income levels. There's been some struggle as their costs 563 00:33:29,430 --> 00:33:32,470 S6: continue to move up as fast, if not faster, than 564 00:33:32,470 --> 00:33:35,350 S6: their wages. So we've got to watch that very carefully. 565 00:33:35,350 --> 00:33:40,510 S6: But jobless claims last week were less than expected and 566 00:33:40,550 --> 00:33:45,710 S6: consumer spending continues pretty good. Um, as the economy improves 567 00:33:45,710 --> 00:33:49,070 S6: and the, uh, one big beautiful bill, which is, um, 568 00:33:49,070 --> 00:33:51,110 S6: you know, in center right now is going to make 569 00:33:51,150 --> 00:33:53,870 S6: a difference for lots of consumers. 570 00:33:54,150 --> 00:33:57,070 S1: Yeah, there's a lot of talk by the Treasury secretary 571 00:33:57,070 --> 00:34:00,710 S1: in Davos about growth. And I think that's going to 572 00:34:00,710 --> 00:34:03,430 S1: be a consistent theme from this administration this year in 573 00:34:03,430 --> 00:34:06,750 S1: addition to getting prices down. But uh, you know they're 574 00:34:06,850 --> 00:34:09,810 S1: expecting big numbers out of this economy going forward. Do 575 00:34:09,810 --> 00:34:13,210 S1: you feel like those expectations are a bit high? 576 00:34:13,810 --> 00:34:17,170 S6: Yeah, they're they're stretching a bit. But certainly in the 577 00:34:17,170 --> 00:34:20,489 S6: first half with the tailwind of the bill, things could 578 00:34:20,489 --> 00:34:22,569 S6: be quite good. As you know, one of our predictions 579 00:34:22,570 --> 00:34:26,890 S6: is that growth this year is 50 basis points higher 580 00:34:26,890 --> 00:34:29,610 S6: than last year. And last year was pretty good. So 581 00:34:29,890 --> 00:34:32,210 S6: the good economy continues. It's amazing. 582 00:34:32,610 --> 00:34:35,210 S1: Yeah, it really is. Bob, there was some talk about 583 00:34:35,210 --> 00:34:39,770 S1: capping credit card interest rates. That deadline that the president 584 00:34:39,810 --> 00:34:42,770 S1: tossed out there has come and gone. Anything that you 585 00:34:42,770 --> 00:34:44,690 S1: think might materialize there? 586 00:34:45,489 --> 00:34:48,210 S6: I don't think so. It was a scare. Like so 587 00:34:48,210 --> 00:34:52,450 S6: many things the president puts out there or just an awareness. Um, 588 00:34:52,450 --> 00:34:56,490 S6: but the probability that happens, uh, given that he can't 589 00:34:56,489 --> 00:35:00,050 S6: do it unilaterally is probably pretty low. So the credit 590 00:35:00,050 --> 00:35:02,770 S6: card companies have struggled for a bit, but they're coming back. 591 00:35:03,170 --> 00:35:05,940 S1: All right. Very good. Bob. Last question. You know, faith 592 00:35:05,980 --> 00:35:09,060 S1: based investing continues to accelerate. What are you most excited 593 00:35:09,060 --> 00:35:10,540 S1: about there across Mark right now? 594 00:35:11,219 --> 00:35:14,860 S6: Just the number of people who are asking the question, 595 00:35:14,860 --> 00:35:17,819 S6: how do I do this? Whether it's an individual to 596 00:35:17,860 --> 00:35:23,500 S6: an adviser or an advisor to another advisor or institutions? Uh, 597 00:35:23,500 --> 00:35:27,660 S6: it's just great to see the curiosity and the beginning 598 00:35:27,700 --> 00:35:30,460 S6: of what's been already an acceleration. 599 00:35:31,020 --> 00:35:33,380 S1: We appreciate your time. As always, thanks for being here. 600 00:35:33,820 --> 00:35:34,420 S6: God bless. 601 00:35:34,620 --> 00:35:37,259 S1: All right. That's Bob Dole. He's CEO and CIO at 602 00:35:37,260 --> 00:35:41,339 S1: Crossmark Global Investments. You can learn more at Crossmark global. Com. 603 00:35:41,380 --> 00:35:43,299 S1: All right. Let's get to as many calls as we 604 00:35:43,300 --> 00:35:46,620 S1: can here. We've got a few more minutes remaining. Uh, Indiana. 605 00:35:46,620 --> 00:35:47,540 S1: James go ahead. 606 00:35:48,900 --> 00:35:52,820 S7: Hi. Thanks for taking my call. Sure. Um, I'm 56 607 00:35:52,820 --> 00:35:56,700 S7: years old, and I have a good majority. Maybe 60% 608 00:35:56,700 --> 00:36:01,580 S7: of my retirement is in an IRA, and it's in 609 00:36:01,580 --> 00:36:05,669 S7: Amazon stock. And, um, so you can kind of tell 610 00:36:05,710 --> 00:36:09,790 S7: probably where this is going. I'm not diversified. And the 611 00:36:09,790 --> 00:36:14,070 S7: rest of my, the other 40% is in 403 B 612 00:36:14,110 --> 00:36:17,469 S7: and a 457 plan and with all with my employer. 613 00:36:17,790 --> 00:36:20,670 S7: And that was is invested in I can only invest 614 00:36:20,670 --> 00:36:23,590 S7: in mutual funds, but my mutual fund of choice was 615 00:36:23,830 --> 00:36:27,029 S7: something like it's not q-q-q, but it's the equivalent of that. 616 00:36:27,030 --> 00:36:31,950 S7: So that's all in the Nasdaq 100 index. And um, 617 00:36:32,390 --> 00:36:36,029 S7: I'm aware that I'm not very diverse. My stock I 618 00:36:36,030 --> 00:36:38,950 S7: bought the Amazon stock a long time ago, at least 619 00:36:38,950 --> 00:36:42,710 S7: for me, and got kind of spooked and sold it 620 00:36:42,750 --> 00:36:46,549 S7: and rebought it again. And uh, and I've had it 621 00:36:46,550 --> 00:36:51,270 S7: for so long that that's my quandary is how long 622 00:36:51,310 --> 00:36:54,230 S7: to hold something like that? And or is it, it 623 00:36:54,230 --> 00:36:56,950 S7: could go down 30% and I would still be way 624 00:36:56,950 --> 00:37:00,190 S7: up from where it was. Or should I think about 625 00:37:00,469 --> 00:37:03,770 S7: diversifying more? Should I keep. I know you can't really 626 00:37:03,770 --> 00:37:06,250 S7: tell me whether or not to sell Amazon, but how 627 00:37:06,250 --> 00:37:08,850 S7: do I diversify in a way that still allows me 628 00:37:08,850 --> 00:37:11,450 S7: to to hold on to a large portion of that? 629 00:37:11,810 --> 00:37:14,410 S1: Yeah, it's a great question. And I think you're right. 630 00:37:14,450 --> 00:37:17,890 S1: I mean, it's what we call concentration risk. And that's 631 00:37:17,890 --> 00:37:20,170 S1: kind of where you're at. What you don't want to 632 00:37:20,170 --> 00:37:23,609 S1: do is, you know, take the approach. Well, I'm just 633 00:37:23,610 --> 00:37:26,090 S1: going to keep riding it because it got me here. 634 00:37:26,290 --> 00:37:28,210 S1: You know, we want to avoid that. We also want 635 00:37:28,250 --> 00:37:33,969 S1: to avoid assuming that past returns will repeat. We also 636 00:37:34,010 --> 00:37:37,450 S1: want to avoid waiting for the perfect time to sell. 637 00:37:37,770 --> 00:37:41,290 S1: And we want to avoid ignoring the taxes. So how 638 00:37:41,290 --> 00:37:43,770 S1: do we approach this? Well, I think the first thing 639 00:37:43,770 --> 00:37:48,810 S1: is just to say, okay, yeah, uh, a 70% position 640 00:37:48,930 --> 00:37:52,170 S1: concentrated in a single stock. And that's basically what this 641 00:37:52,170 --> 00:37:55,569 S1: is given the, the 1.1 million plus the half a million, 642 00:37:55,610 --> 00:37:59,210 S1: the 403 B and and 401 K and other retirement accounts, 643 00:37:59,210 --> 00:38:03,500 S1: 1.6 6 million. It's about 70% in a single stock. 644 00:38:03,700 --> 00:38:06,700 S1: And that's just, you know, not only aggressive, it kind 645 00:38:06,700 --> 00:38:10,299 S1: of puts you in a fragile situation here. Um, and 646 00:38:10,300 --> 00:38:14,100 S1: so I think moving forward, how do you approach this? Well, 647 00:38:14,100 --> 00:38:17,700 S1: we want to identify what your ultimate stock exposure target 648 00:38:17,700 --> 00:38:19,860 S1: should be. And even if we might take quite a 649 00:38:19,860 --> 00:38:22,100 S1: bit of time to get there, you know, that at 650 00:38:22,140 --> 00:38:24,939 S1: least tells you eventually where you're going. And I would 651 00:38:24,940 --> 00:38:28,620 S1: say you generally don't want more than 10% of your 652 00:38:28,620 --> 00:38:33,300 S1: total investable assets in a single stock. You know, 1,520% 653 00:38:33,300 --> 00:38:38,300 S1: is considered high. 70 again, is is extreme concentration. So 654 00:38:38,340 --> 00:38:41,339 S1: what does it look like to get that 70% down 655 00:38:41,340 --> 00:38:43,899 S1: to 10 to 15. Well, you know, I think you'd 656 00:38:43,900 --> 00:38:47,820 S1: want to gradually diversify. So you could sell portions over 657 00:38:47,820 --> 00:38:51,060 S1: time that we're talking even months or years. You could 658 00:38:51,060 --> 00:38:54,380 S1: avoid the all at once, uh, timing risk. And I 659 00:38:54,380 --> 00:38:57,460 S1: think you need to align it with not only tax planning, 660 00:38:57,460 --> 00:39:02,070 S1: but market conditions and any income needs that you have. Um, 661 00:39:02,070 --> 00:39:04,390 S1: I'm assuming this is all in a taxable account. Is 662 00:39:04,390 --> 00:39:04,990 S1: that right? 663 00:39:06,150 --> 00:39:10,790 S7: Um, it's in a, uh, an IRA. It's in what 664 00:39:10,790 --> 00:39:12,110 S7: they call a retail IRA. 665 00:39:12,469 --> 00:39:15,629 S1: Oh, the the 1.1 million in the Amazon is in 666 00:39:15,630 --> 00:39:16,150 S1: an IRA. 667 00:39:17,230 --> 00:39:20,310 S7: It is. I, I worked for an employer who allowed 668 00:39:20,310 --> 00:39:23,910 S7: me to. I asked specifically, can I somehow have it 669 00:39:23,910 --> 00:39:25,629 S7: taken out of my check? And instead of going into 670 00:39:25,630 --> 00:39:28,310 S7: all these mutual funds, can I have it at TD Ameritrade. 671 00:39:28,350 --> 00:39:32,150 S7: And it was years ago. Very unusual circumstance. And they 672 00:39:32,150 --> 00:39:33,509 S7: allowed me to do it. And that's. 673 00:39:33,510 --> 00:39:33,670 S1: Oh. 674 00:39:33,670 --> 00:39:34,310 S7: That's great. 675 00:39:34,910 --> 00:39:38,070 S1: Well that's incredible because that means there's essentially no tax 676 00:39:38,070 --> 00:39:40,109 S1: friction here. And so then it's just a matter of 677 00:39:40,110 --> 00:39:42,710 S1: saying okay what is that target. And then you want 678 00:39:42,710 --> 00:39:45,950 S1: to reinvest with purpose. So we want to identify what 679 00:39:45,950 --> 00:39:50,069 S1: is that ultimate, uh, you know, allocation between, you know, 680 00:39:50,110 --> 00:39:54,590 S1: various asset classes, fixed income stocks, you know, precious metals. 681 00:39:54,590 --> 00:39:57,890 S1: If you want any other asset classes like real estate 682 00:39:57,890 --> 00:40:01,090 S1: or even, you know, crypto, things like that. What is 683 00:40:01,130 --> 00:40:04,210 S1: your your ultimate target? And then who are going to 684 00:40:04,250 --> 00:40:06,810 S1: who's going to make those selections for you? If you're 685 00:40:06,810 --> 00:40:09,729 S1: comfortable doing that, great. If you're not, I think going 686 00:40:09,730 --> 00:40:12,049 S1: ahead and getting with an advisor, perhaps reaching out to 687 00:40:12,090 --> 00:40:16,610 S1: a certified Kingdom advisor, interviewing 2 or 3. But once 688 00:40:16,610 --> 00:40:19,290 S1: you select that advisor, assuming you don't want to do 689 00:40:19,290 --> 00:40:21,810 S1: this yourself and you kind of work through the discovery 690 00:40:21,810 --> 00:40:25,649 S1: and together you all land on that asset allocation, then 691 00:40:25,650 --> 00:40:28,609 S1: there's really nothing that should hold you back. Given that 692 00:40:28,610 --> 00:40:32,970 S1: this is a tax deferred account of beginning to to move, uh, 693 00:40:33,010 --> 00:40:36,529 S1: you know, toward that target allocation sooner rather than later. 694 00:40:38,090 --> 00:40:40,890 S7: Okay. I think I understand what you're saying. I appreciate it. 695 00:40:41,090 --> 00:40:44,010 S7: So you would not necessarily do this all at once, 696 00:40:44,010 --> 00:40:48,730 S7: but over time. And, um, I talked with the financial planner, um, 697 00:40:49,290 --> 00:40:51,209 S7: what I was choking on a little bit. Always having 698 00:40:51,210 --> 00:40:55,330 S7: done it myself. Um, was the, the 1% of my 699 00:40:55,370 --> 00:40:58,220 S7: assets and. Yeah. Uh, but. 700 00:40:58,780 --> 00:41:01,100 S1: Yeah. No, I get that. I think the key here 701 00:41:01,100 --> 00:41:04,660 S1: is you've built a lifetime, you know, accumulating this nest egg. 702 00:41:05,020 --> 00:41:09,860 S1: And although $16,000 on 1.6 million is a lot. Um, 703 00:41:09,900 --> 00:41:12,859 S1: I get that. I think the reality is, you know, 704 00:41:12,900 --> 00:41:15,899 S1: that advisor should, in terms of what he or she's 705 00:41:15,940 --> 00:41:18,859 S1: able to do to to protect what you've got and 706 00:41:18,860 --> 00:41:21,100 S1: then to grow it modestly, they should be able to 707 00:41:21,140 --> 00:41:25,420 S1: at least add, you know, greater than 1%, uh, a 708 00:41:25,540 --> 00:41:29,580 S1: year of value in terms of real returns that would 709 00:41:29,620 --> 00:41:33,020 S1: offset that and hopefully help you, you know, manage the 710 00:41:33,020 --> 00:41:36,980 S1: tax implications and the other financial planning considerations that you 711 00:41:36,980 --> 00:41:40,020 S1: have in this new season of life. So, you know, 712 00:41:40,060 --> 00:41:42,660 S1: just in terms of being strategic about how you withdraw 713 00:41:42,660 --> 00:41:47,140 S1: that using, you know, mixing in your charitable planning strategy, 714 00:41:47,180 --> 00:41:49,260 S1: you know, even talking to you about things like estate 715 00:41:49,260 --> 00:41:53,100 S1: planning tools and just making sure you're well planned, hopefully 716 00:41:53,100 --> 00:41:55,400 S1: that's going to be rolled into some of these fees 717 00:41:55,400 --> 00:41:57,800 S1: as well. And I think at the end of the day, 718 00:41:57,840 --> 00:42:01,080 S1: knowing that this doesn't all sit on your shoulders in 719 00:42:01,080 --> 00:42:04,480 S1: terms of the responsibility of selecting the investments, but you've 720 00:42:04,480 --> 00:42:07,959 S1: got somebody who can take a rules based non-emotional approach 721 00:42:08,120 --> 00:42:11,440 S1: and bring other investment options to the table that you 722 00:42:11,440 --> 00:42:14,319 S1: might not consider. You put all that together, and it's 723 00:42:14,360 --> 00:42:16,240 S1: worth a lot more than 1% a year. 724 00:42:17,560 --> 00:42:20,080 S7: Yeah, that's a good way of putting it I appreciate that. Yeah, 725 00:42:20,080 --> 00:42:21,200 S7: it helps me reframe it. 726 00:42:21,600 --> 00:42:24,520 S1: Good. Well, if you don't have an advisor, you can 727 00:42:24,520 --> 00:42:29,799 S1: head to find a.com, do a zip code, search for Indiana. 728 00:42:29,800 --> 00:42:31,520 S1: And there's some great ones there. It sounds like you 729 00:42:31,520 --> 00:42:33,799 S1: have at least one person you've talked to that may 730 00:42:33,840 --> 00:42:35,719 S1: be the person to go with, but I think at 731 00:42:35,719 --> 00:42:38,160 S1: the end of the day, going ahead and finding that person, 732 00:42:38,320 --> 00:42:41,640 S1: getting that IRA open, rolling this over and starting to 733 00:42:41,680 --> 00:42:44,719 S1: diversify out sooner rather than later is pretty important. Thanks 734 00:42:44,719 --> 00:42:48,520 S1: for your call today, Josh Taylor Tyra Omar serving us today. 735 00:42:48,560 --> 00:42:51,160 S1: Faith and Finance Live is a partnership between Moody Radio 736 00:42:51,160 --> 00:42:52,880 S1: and Faith fi. We'll see you tomorrow.