S1: Today's version of faith and finance live is actually not live.
S1: So don't call in.
S2: Proverbs 2723 says, know well the condition of your flocks
S2: and give attention to your herds. Hi, I'm Rob West.
S2: We may not be in an agrarian society, but that
S2: proverb still applies today. Faithful stewardship requires attention. If we
S2: don't know what we have and where it's going, we
S2: can't manage it with biblical wisdom. Today, we'll look at
S2: the best practices of budgeting and why. It's about far
S2: more than numbers. And we have some great calls lined up,
S2: but we won't be taking your calls today because we're pre-recorded.
S2: This is faith and finance. Live biblical wisdom for your
S2: financial journey. A budget is simply a plan for managing
S2: what God has entrusted to you. It's not meant to
S2: be a burden or a source of shame. It's a
S2: tool for faithfulness. As stewards, we recognize that everything belongs
S2: to the Lord. That means our income, our savings, our
S2: spending and our giving all fall under his care and purposes.
S2: So budgeting begins with a spiritual question before it becomes
S2: a financial one. Lord, how would you have me manage
S2: what you've provided? That question changes the purpose of a budget.
S2: We're not just trying to make the numbers work. We're
S2: asking whether our financial decisions reflect what we truly value.
S2: A budget helps reveal patterns. It shows whether our money
S2: is drifting toward impulse, comfort and accumulation, or whether it's
S2: being directed toward generosity, provision, responsibility, and contentment. So what
S2: are some best practices? Well, first, start with giving. Scripture
S2: never treats generosity as an afterthought. In second Corinthians nine seven,
S2: Paul writes, each one must give as he has decided
S2: in his heart, not reluctantly or under compulsion, for God
S2: loves a cheerful giver. A budget allows us to be
S2: intentional rather than reactive. Instead of giving only if something
S2: is left over, we prayerfully decide in advance how we
S2: want to participate in God's work. Second, know your true income.
S2: For someone with a fixed paycheck that may be fairly simple.
S2: You can build your monthly plan around predictable take home pay.
S2: But for those with variable income, business owners, commission workers, freelancers,
S2: seasonal workers, or hourly employees, the process takes a little
S2: more care. If your income changes month to month, build
S2: your budget around a conservative baseline. Look back over the
S2: last 6 to 12 months and identify your lower income months.
S2: Then build your core expenses around that number. Not your
S2: best month, but a realistic minimum. When higher income months come,
S2: intentionally allocate the extra dollars, build savings, pay down debt,
S2: catch up on future expenses, or increase generosity. Third, give
S2: every dollar a job. That doesn't mean every dollar is spent.
S2: Saving is a job. Giving is a job. Paying bills
S2: is a job. Preparing for future car repairs, insurance premiums,
S2: school expenses, medical needs, or. Christmas is a job. The
S2: goal is not restriction. The goal is direction. Fourth, plan
S2: for irregular expenses. Many budgets fail because they only include
S2: monthly bills, but life includes non-monthly expenses, car maintenance, home repairs, gifts, travel,
S2: school costs, medical needs, and annual renewals. These are not
S2: emergencies if we know they're coming. A wise budget sets
S2: aside small amounts over time so that predictable expenses don't
S2: become financial surprises. Fifth build margin. Margin is the space
S2: between income and outgo. Without it, even a small disruption
S2: can create stress. With it, we're better positioned to respond
S2: with wisdom when needs arise. Margin can also create room
S2: for generosity. Ephesians 428 says, we are to work honestly
S2: so that we may have something to share with anyone
S2: in need. Budgeting helps us live with that kind of readiness. Six.
S2: Review and adjust. A budget is not a one time document.
S2: It's a regular conversation with the Lord, with your spouse.
S2: If you're married and with reality. Some months need adjustment.
S2: Some categories may be unrealistic. The goal isn't perfection. The
S2: goal is faithfulness. And that's where budgeting becomes part of
S2: our spiritual formation. It teaches us to see continually how
S2: God has provided. It trains us to say no for
S2: the sake of a greater yes. It helps us practice
S2: contentment in a culture of constant comparison. It gives us
S2: a framework for generosity before money gets absorbed by lesser things.
S2: So if you're ready to take that next step, we'd
S2: love to help. The Faith Fi app is the leading
S2: Christian budgeting app that integrates your faith with practical financial management,
S2: helping you steward God's money God's way. It's more than
S2: a budgeting tool. It's a biblical stewardship ecosystem that addresses
S2: not only the numbers, but also the heart behind them.
S2: Join 80,000 believers pursuing faithful stewardship and start your 30
S2: day free trial today at faith fi.com/app. That's faith fi.com/app.
S2: Much more to come just around the corner. Stay with us.
S2: So glad to have you with us today on Faith
S2: and Finance live. Our team is away today, so don't
S2: call in. But we lined up some great questions in
S2: advance and we'll be going to those here in just
S2: a moment. Let me also remind you that the advice
S2: that I give each day on this program is general
S2: in nature. We offer principles and ideas that apply at
S2: a high level. They are not personalized, so that's why
S2: you should always seek professional financial advice. And if you'd
S2: like to find a professional who shares your values, we
S2: of course, here at Faith and Finance Live recommend the
S2: Certified Kingdom Advisor designation. These are men and women who've
S2: met high standards, and they've been trained to bring a
S2: biblical worldview of financial decision making. You can find 1@faith.com.
S2: Now let's head to the phone calls we have lined up.
S2: Let's go to Alabama. Brad, how can I help you?
S3: Yes, Rob, thank you for all your information. You seem
S3: to be on top of all the issues my wife
S3: and I were discussing. We're in our 70s and we
S3: had pensions set up, so we're basically able to live
S3: off of our pensions. So we've tried to keep this
S3: invested for the future, for God's work. And I was
S3: reading about Solomon, how to we've got about 80% of
S3: our portfolio in stocks and only 20% in bonds. I
S3: really don't like gold and silver. So how do you
S3: feel about putting 5% of our portfolio in classic cars?
S2: Yeah, that's a great question. Uh, you know, if you're
S2: asking whether classic cars should replace precious metals as a
S2: meaningful part of your investment portfolio, I'd be cautious. Classic
S2: cars can be fun, but I would view them as
S2: a passion investment, not a core retirement investment. Uh, you know,
S2: there are, of course, illiquid. Takes time to find a buyer.
S2: You've got to insure them and store them and maintain them.
S2: And you've got upkeep. And the values can be unpredictable. Uh,
S2: it's really collector demand. And there's no, of course, income
S2: stream like dividends or bond interest or rental income. But,
S2: you know, if you're a car enthusiast and you know,
S2: you have the ability to do that and you want
S2: to take 5% of your investable assets to do something
S2: you enjoy because you, love classic cars and you can
S2: afford to do that just given the state of your
S2: overall finances, then I would say go right ahead and
S2: enjoy that. But I wouldn't view that as a substitute
S2: for a well-diversified investment portfolio personally.
S3: What else would you recommend then if, uh, besides maybe
S3: another 5% of something else?
S2: Mhm. Yeah. Um, you know, if you don't like gold
S2: and silver, I think, you know, just the, the stocks
S2: and bonds would be probably the way to go. Uh,
S2: I mean, maybe you dial up your bond allocation a
S2: little bit to reduce portfolio volatility, you know, rather than
S2: chasing returns. Um, you know, it, uh, the other options
S2: would be cash and short term treasuries, real estate, although
S2: in your 70s, I wouldn't encourage you, you know, to
S2: take on the responsibilities of becoming a landlord unless it's
S2: something you really enjoy. Um, but I think a broadly
S2: diversified stock and bond portfolio, with exposure to the US
S2: and the international markets on the stock side. And, you know,
S2: short and medium term high quality bonds and treasuries is
S2: probably the way to go. Um, and if you don't
S2: want the precious metals, that's perfectly reasonable, but I wouldn't
S2: feel compelled to replace that with another quote alternative investment personally.
S3: Okay. Well thank you.
S2: Absolutely. Let me mention one other thing though, Brad. And
S2: that is you mentioned your passion to support God's kingdom. And,
S2: you know, I might think and I don't know what
S2: you're spending on a monthly basis. I don't know what
S2: your portfolio size is and I don't need to, but
S2: the only thing I would just throw out is, you know,
S2: I hear from a lot of people saying, Rob, I'm
S2: going to die with one, two, three, $5 million in
S2: my trust someday. And, you know, then I'll give it
S2: to God's work. Well, what about defining enough, whatever that
S2: might be, that's reasonable and allows for the uncertainties that
S2: might come down the road and accelerating some of that
S2: giving right now, you might have a blast doing that
S2: and get it into God's economy sooner, which never is
S2: a bad thing because there's real needs in the world.
S2: So that might be the only thing I'd leave you
S2: with is just think about, is there any portion of
S2: what God has entrusted to you on your balance sheet
S2: that you could go ahead and put into, uh, to
S2: work for the kingdom now, rather than waiting and doing
S2: all of your giving at death? Something to think about
S2: that may not apply here. Again, I don't know your details,
S2: but just something I want to throw out. Brad, thanks
S2: for your call. Lord bless you, my friend. Thanks for
S2: being a faithful listener. If I can help in any
S2: way in the future, give us a call, uh, to Ohio. Hi, John.
S2: How can I help?
S4: Yeah. Hi. I was asking a question about my thrift
S4: savings plan and rolling it over to IRA.
S2: Okay.
S4: Would it benefit me to do that? Now I'm getting
S4: ready to retire, uh, within the next five years. I'm
S4: eligible now. But, you know, life no retiring right now. But, um,
S4: so I was told that I could roll it over.
S4: It would stay fixed at that amount and could only
S4: go up in that my. I can still keep my
S4: thrift savings open and still contribute to that. Would that
S4: be a wise move?
S2: I like the idea of rolling the TSP out to
S2: an IRA, but I'd love to know more about it. Can't.
S2: It can only go up. What are you rolling it
S2: into like an insurance product?
S4: You know that. I'm not sure. I just was speaking
S4: with a guy last night and he was talking to
S4: me about it. I'm not sure that's what I was
S4: curious why I was calling you because I'm not quite
S4: fully understanding what he's talking about to how would that
S4: be guaranteed that it wouldn't go down?
S2: Yeah, it's probably an IRA annuity, which is a tax
S2: deferred annuity, which would not be my first choice. How
S2: much have you accumulated in that TSP, John?
S4: It's close to 300, I believe.
S2: Yeah. Okay. And, uh, how far off is retirement? I
S2: realize you said you're eligible to retire, but you need
S2: to continue, you know, to work for a season. How
S2: far off do you anticipate retiring, at least at this point.
S4: No more than five years.
S2: Okay. Got it. And what will you have in addition
S2: to this 300,000 and what it grows to over the
S2: next five years for retirement? Will you be eligible for
S2: Social Security?
S4: Yes, I'm 60. I'm 60 right now.
S2: Okay. And so do you have a sense of what
S2: that will be just based on your benefit statement?
S4: My my social security.
S2: Yes, sir.
S4: I think it's around 1100 or 1400 a month. Something
S4: like that.
S2: Okay. Got it. Yeah. So I mean, if let's say
S2: this grows to 350,000, I'd be comfortable with you pulling 4%
S2: a year just as a starting point. So that'd be
S2: a little more than a, you know, a thousand a month.
S2: So let's call it 1100 a month. If you add
S2: that to 1400 a month, we're talking about 2500 a month.
S2: I think the question would be, you know, is that enough?
S2: Do you have any other income sources in retirement, or
S2: would you be trying to make it just on Social
S2: Security plus your TSP?
S4: I'll have my retirement from the postal service also.
S2: Okay, great. Yeah. So could it be that between the
S2: Postal Service, retirement and Social Security, the goal might be
S2: that you don't even touch the 350,000, if that's what
S2: it grows to?
S4: That's my hopes.
S2: Yeah. Okay, good. Well, I think that puts you in
S2: a great position, because if you can limit your lifestyle
S2: live on your post-retirement plus Social Security, you know, that
S2: would be ideal. And then I'd be looking to roll
S2: that TSP over to an IRA and have an advisor
S2: manage it for you, rather than putting it in an
S2: insurance company. There is something nice by transferring the risk
S2: away from the markets to an insurance company in the
S2: form of an annuity type product, because there's a floor
S2: on it. To your point earlier, you can't lose money.
S2: The downside is in exchange for that floor, there's always
S2: a cost for it. And the cost is you're not
S2: going to get the full upside. And so, you know,
S2: the way we get the, the better, you know, annual
S2: average annual returns is we take the up with the
S2: down and we manage that risk through diversification and, and
S2: asset allocation. So, you know, if you're retiring at 65,
S2: let's say, you know, we might put 40 to 45%
S2: in stocks, 55 to 60% in bonds, maybe a small
S2: portion of precious metals. We try to smooth it out,
S2: get a nice yield coming in. But the real benefit
S2: is even though you're taking on some risk, you are
S2: getting 100% of the upside and you have access to
S2: the money if you needed it for long term care
S2: or some other event. So I like rolling it to
S2: an IRA and finding a certified Kingdom advisor to manage it.
S2: Let's finish up off the air. We'll be right back.
S1: You're listening to Faith and finance Live, and you can
S1: find us 5.com. However, today we are not live. So
S1: if you hear that phone number, please don't call, but
S1: do stay with us. There's lots of good information ahead.
S2: Let's go to Illinois. Hi, Carolyn. How can I help you?
S5: Hi. The reason for my call, it's. I guess it's
S5: sort of a two part question, but I also wanted
S5: to express. When I went to the bank, I was
S5: offered a opportunity to have a HELOC. I don't need it,
S5: but they have a promotion going and there are no
S5: fees and this and that. But one of the things
S5: that I want to point out is that when I
S5: was going through the paperwork, it was because of this
S5: program that I was able to understand much better what
S5: I was reading and go back today and ask questions.
S5: I was able to ask questions about, you know, the
S5: index in terms of, you know, what you're going to
S5: pay in interest, the index, and then the margin that
S5: they add on. And then the Apr and all those
S5: things were very clear to me in terms of being
S5: able to ask intelligent questions and understand what they were saying.
S5: So I just wanted to let you know that it
S5: was because I listened to this program that I was
S5: able to comprehend that.
S6: And I'm so glad to hear that. That's great. Well,
S6: I'm delighted.
S2: We could have been a resource for you. It's always
S2: helpful when you go in somewhere and you have a
S2: little bit of a knowledge base to build on and
S2: ask the right questions so that that thrills me to
S2: no end. Carolyn. Well, specifically related to that HELOC, what
S2: are you thinking about?
S5: Okay, well, I don't need the thing. And they were
S5: they were offering it. And if you have anything that
S5: you want to say about them, that's fine. The nature
S5: of my question was that I noticed with this HELOC,
S5: and I've noticed in the past, like for instance, if
S5: you're buying a car, when they do a hard check
S5: on your credit, what they come back with seems to
S5: be significantly different than what the consumer products offer. So,
S5: for example, I never fall below 800 when I'm checking online.
S5: But for example, today Equifax showed 780 when the information
S5: that I got in the mail from the bank. Now,
S5: when I go online with the consumer resources and I
S5: check Equifax, it says 804. And even if you do
S5: a hard check, generally, you know, it's not going to
S5: be a 20 plus spread difference and it wouldn't bounce
S5: back that quickly. So my initial question is, is why
S5: is this such a significant difference between what the consumer
S5: has access to versus the, you know, corporate or whatever?
S2: Yeah, it's a great question. And you're exactly right. They
S2: can vary pretty significantly. And it comes down to the
S2: difference between consumers and lenders using different formulas that weight
S2: information differently. So, for example, lenders may use different versions
S2: of a Fico score that's industry specific for certain types
S2: of loans. And so that means it's a different algorithm
S2: and it places weight on different factors versus the consumer
S2: version of that. That might use a completely different formula
S2: that results in a higher score. So they should be
S2: of course in the ballpark. Um, but it's not unusual
S2: for them to be different by any means. And that's
S2: why a lender is always going to want to pull
S2: their own credit report. Even if you were to say, hey,
S2: I just pulled this the other day, here it is.
S2: They're not going to accept it because they want to
S2: run it through their own formulas because they know that
S2: they're using certain, uh, you know, formulas with certain weightings
S2: for a specific type of loan that you're seeking. So
S2: that's usually the difference there with regard to that HELOC.
S2: You know, some folks will say, well, I ought to
S2: go ahead and get it, even if I'm not going
S2: to use it. Because what if I needed it in
S2: the future and I couldn't qualify for it? And as
S2: long as I don't borrow against it, I'm not having
S2: to pay anything. And I would just challenge that a
S2: little bit. Even if there's not upfront fees, which usually
S2: there are some costs, closing costs and so forth. But
S2: even if they're saying, listen, we won't charge any of that,
S2: then often there are other expenses. There might be an
S2: inactivity charge, there may be, you know, other kind of
S2: monthly charges that they impose upon you that you know,
S2: will cost you something over time. You also have the
S2: impact to your credit because that's another loan that's outstanding.
S2: Even if you're not using it, that's a credit that's
S2: available to you, which will be factored in. So I
S2: think I would just make sure you have a purpose
S2: for it. And if you don't, I'd probably be inclined
S2: not to. There might be some that would say, as
S2: long as there's no fees and you'd want to double
S2: check that, that it's worth getting just to have access
S2: to it if you needed it down the road, I
S2: would probably opt not to. The last reason is often
S2: there's a temptation to use it because it's there even
S2: when you don't really need it. So anyway, I hope
S2: those things are helpful. Thanks for your kind remarks about
S2: the program, Carolyn. We appreciate you being on today. We're
S2: going to head to Tennessee and talk to John. Go
S2: ahead sir.
S7: Hello, Rob. I've learned a lot from you over the years.
S7: Thank you.
S2: Absolutely. Thank you.
S7: You're welcome. I'm a retired pastor. I preach a lot
S7: of funerals and have extra income. And it seems like
S7: the tax law has changed about how much to report
S7: and when do we fall into self-employment and have to
S7: pay Social Security taxes and that sort of thing? Can
S7: you help me?
S2: Yeah, I'd be happy to. And I'm delighted to hear
S2: you're asking this question, because we certainly want to get
S2: this right. You know, the tax law hasn't changed, even
S2: though there's been a lot of changes as of late,
S2: largely because of the one big, beautiful bill and other
S2: changes recently the Secure act 2.0 and others. It hasn't
S2: changed in the sense that self-employment income has become exempt. Um,
S2: you know, if you're receiving compensation for performing funerals as
S2: a retired pastor, that income is going to be generally
S2: taxable and would likely be subject to self-employment tax depending
S2: on your situation. So the key points to understand are,
S2: first of all, all income is reportable regardless of the
S2: amount unless a specific exclusion applies self-employment tax. So that's
S2: Social Security. And Medicare generally applies once your net earnings
S2: from self-employment are $400 or more for the year and
S2: your age doesn't exempt you. So regardless of your age,
S2: these rules apply. Uh. There are a few special tax
S2: rules for clergy. If you've previously filed the form 4361
S2: and you receive that as an exemption from self-employment tax
S2: on ministerial earnings. That could change something. Um, so that
S2: would be one question that we could talk about. But
S2: other than that everything is generally reportable. And self-employment tax
S2: kicks in at $400 or more. I've got to hit
S2: this break John. But let me get your follow up
S2: questions after the break and we'll finish our conversation. Amy. Billy,
S2: coming your way as well. Stay with us.
S1: You're listening to Faith and finance live. This program is prerecorded,
S1: so we're not available to answer your calls, but you
S1: can email us your questions at ask rob@faith.com.
S2: Before the break, we were talking to John. He's 77, retired,
S2: wondering about self-employment income that needs to be reported to
S2: the IRS. He's a retired pastor, but he's preaching at
S2: some funerals, earning some extra income. Wondering if any recent
S2: tax law changes affect him. And as I had shared,
S2: although there have been a number of tax law changes,
S2: the tax law hasn't changed in the sense that self-employment
S2: income has become exempt in any way. All income generally
S2: reportable self-employment tax kicks in over $400 for the year,
S2: and you have to or legally required to file a
S2: tax return and report that income. And that would automatically
S2: trigger that $400 threshold. The requirement to pay self-employment tax,
S2: which covers Medicare and Social Security. And it applies to everyone.
S2: There is a carve out, though, for those that have, quote,
S2: opted out for ministerial reasons of Social Security. And John,
S2: you and I talked off the air and you said
S2: you have opted out. And so if that was done
S2: through the proper form and accepted by the IRS, then,
S2: you know, that would change things a bit. I would
S2: talk to your CPA about that because you would likely
S2: not owe self-employment tax, Social Security and Medicare on ministerial earnings,
S2: including those funerals, because you have you know, you're exempt
S2: and that's irrevocable. So you would still report the income
S2: for income tax purposes. But the exemption is from the
S2: self-employment tax. So any follow up thoughts on that though.
S7: Well, Rob, uh, my tax preparer mentioned a $2,000 figure, uh,
S7: and gave me the impression that other income other than
S7: Honorariums and 43, 61 income wasn't reportable until you reached $2,000.
S7: And I'm thinking there is other income at times from
S7: assisting but not preaching, uh, at a funeral home, uh,
S7: precinct voting worker, you know, there's some income there. Uh,
S7: do you see see how it seems complicated to me,
S7: and I'm not sure.
S2: I totally do.
S7: Yeah, I want to honor Christ.
S2: Of course. Yeah, absolutely. Uh, yeah. So there isn't a
S2: general rule that says, uh, that the first 2000 of
S2: self-employment income or other income isn't reportable. Um, you know,
S2: he may be referring to something else. Maybe it's a
S2: specific reporting threshold for a particular type of payment or, uh,
S2: a rule that applied to a particular credit. Um, so
S2: I might go back to him and just ask for
S2: clarification there. But, you know, I think at the end
S2: of the day, the income is reportable, the self-employment income. Uh, again,
S2: if you have the approved 43, 61 exemption, you know,
S2: that would not apply. But I'm not aware of any
S2: general rule around a $2,000 exemption. So you may just
S2: want to get some clarity on that from your CPA. John.
S2: I hope that helps. Appreciate your service to our Lord. And, uh,
S2: if I can help further along the way, don't hesitate
S2: to reach out. Let's go to Texas. Amy. How can
S2: I help?
S8: Hey, Rob, thanks so much for your ministry. We really
S8: appreciate it. Um, my husband and I have been blessed
S8: beyond measure. Um, I mean, we're not, uh, I guess
S8: from the world standard have a lot from a financial
S8: point of view, but we have more than we'll ever use.
S8: And we want to bless the Lord with that. And we,
S8: we stand to inherit from both sides of the family financially.
S8: And we want to do right by God. We are
S8: currently totally out of debt. Um, we have, throughout our
S8: marriage learned to live within our means as hard as
S8: that can be. We have two grown sons and one
S8: is married and we have two grandchildren. We tend to
S8: get paralysis in the analysis. We have been to several
S8: different classes. We know what we need to do. We
S8: just need somebody to come alongside of us and view
S8: where we are right now and what we want to
S8: do with it. In the name of Jesus. Yeah. Um,
S8: how can we get help with that? I know, you know,
S8: we've talked to different, we, we moved to Texas about
S8: ten years ago. So we're still getting, you know, somewhat
S8: the lay of the land. Um, my dad passed away
S8: in November and we have not fully received all of
S8: that inheritance. Um, and again, we want to know, you know,
S8: so often when people look at us, look at our
S8: financial numbers, you know, they want us to go straight
S8: to investing kind of thing. And we need to understand
S8: that part of it. But we also need to plan
S8: for our future and for our children and grandchildren's future.
S2: Yeah. Well, Amy, what an incredible place to be. I
S2: love this question because you start by saying, I want
S2: to just acknowledge God's faithfulness and his provision and his abundance,
S2: and we want to be good stewards. We want to
S2: be faithful in how we manage this for God's glory.
S2: And that can include giving that can including investing, which
S2: is a part of God's plan for, you know, human
S2: flourishing and for promoting the common good, even participating in
S2: God's redemptive purposes. We want to be well planned for
S2: the for the future and think about, you know, what
S2: might come down the road. And we want to surrender
S2: all of that to the Lord. And that's exactly the
S2: right posture, I think, for all of us. And you
S2: need a partner in that, somebody who understands the power
S2: of money as a tool to accomplish God's purposes, both
S2: in terms of for the future, but also to be,
S2: you know, given away and to be invested and held loosely, um,
S2: for God's purposes as well. And all nothing, you know, in,
S2: in any part of that, nothing is better than another.
S2: It's all a part of a virtuous cycle. I think
S2: of using God's money in a way that brings God glory. Um,
S2: where are you guys as you think and pray right now.
S2: Kind of. What is the thing that really trips you up?
S2: You mentioned analysis paralysis. Is it not understanding the investment
S2: markets and investment strategy? Is it how much you should
S2: keep versus how much you should give away? Is it
S2: where to give? Like, is it all of it? Like,
S2: what are the issues that typically trip you guys up
S2: for making decisions?
S8: I think it's the investment strategies. It's also like, as you,
S8: you age, um, when you take Medicare, Medicaid, should you
S8: do Social Security? When should you take that? So it's
S8: very much the investment strategies. And also when we, you know,
S8: when we, when we speak to people, you know, about it,
S8: it's kind of they're looking at the lump sums and
S8: they give good information. But um, my husband too, we're
S8: both very hands on. We love to serve. Um, so
S8: for us just to write the check, it kind of
S8: has to come with the serving alongside of it. Yeah, yeah.
S8: So in some ways that helps narrow down for us
S8: what ministries we want to give to. Yeah. Um.
S2: So it makes.
S8: Sense kind of, you know, being the hands on kind
S8: of thing.
S2: Um, yeah. Yeah. Excellent.
S8: It's a, it's a beautiful predicament. We like to.
S2: Yes, it sure.
S8: Is blessed to be a blessing. Yeah. Um, but you
S8: and I both know that as you increase in your wealth,
S8: somehow that word gets out there and people want you
S8: to give to their, their legitimate causes.
S2: Yeah. So it's also.
S8: A faith walk in, you know, okay, what direction can
S8: we go? You know, we're looking at, you know, how
S8: can we help our family at this point? We have
S8: one son married, one son, not, um, and they're around
S8: the same ages and, you know, trying to decipher, okay,
S8: what's best for either one of them at any given time.
S2: Yeah. This is so good. Well, this is perfect for
S2: a certified Kingdom advisor. And I don't know whether you've
S2: reached out to a c k in the past, but
S2: I'd love to personally connect you with somebody who can
S2: just walk alongside you, because what you need is the
S2: comprehensive financial planning, which would uncover, you know, how much
S2: you need for the future, how to invest it appropriately,
S2: how to plan for, you know, uh, long term care
S2: if you need it, inheritance, but also your giving. And
S2: an advisor who understands that in light of biblical wisdom
S2: could be just absolutely essential. I'm going to have my
S2: team get your information, and I'll personally connect you with
S2: a few people that could serve you really well. We'll
S2: be right back.
S1: This is our final segment of a faith and finance
S1: live program that we previously recorded. Thanks so much for
S1: being with us today, and we hope you'll stick around
S1: and enjoy the rest of the program.
S2: Boy, what a treat to talk to the previous caller.
S2: You know, I think, um, you know, as Amy was describing,
S2: they want to be found faithful. And one of the
S2: consistent themes in Scripture is that wisdom is not something
S2: we're meant to pursue alone. You know, from Genesis to Revelation,
S2: God repeatedly reminds us as his people that clarity and
S2: protection and faithfulness are often found through the counsel of others,
S2: especially counsel rooted in reverence for him. You know, Proverbs
S2: 1114 comes to mind where there is no guidance, a
S2: people falls, but in an abundance of counselors there is safety.
S2: And that's why we did this study of certified Kingdom
S2: advisors and their clients versus traditional advisors and their clients.
S2: And the data was just remarkable as we uncovered really
S2: the benefits of working with an advisor who's been trained
S2: to bring biblical wisdom and to walk alongside you and
S2: help you express your values through your investments, through your giving,
S2: through your financial management. Here's some of the data that
S2: came out of it. 64% of general clients that the
S2: top reason they selected their advisor was investment returns. That
S2: was the top reason at 64%. The top reason for
S2: the clients was that they wanted shared beliefs and values.
S2: So clearly, right out of the gate, you know, the
S2: clients of the C, K A are choosing the C,
S2: k a because they want those shared values. They understand
S2: the biblical emphasis on aligned counsel isn't just theoretical. You know,
S2: we see that shared values profoundly shape trust and clarity
S2: and long term faithfulness in relationships. And that's why. And
S2: here's the second data point I'll highlight is that as
S2: we looked at the retention rate of the CKAS, the
S2: c k clients reported a 98% retention rate. That was
S2: extraordinary trust and stability in the relationship over the three
S2: years prior to the survey. Whereas the general advisers were
S2: at 75%. So still good, but not anywhere close to
S2: a 98% retention rate. They also had, if you're familiar
S2: with the term Net Promoter score, which is essentially it's
S2: a very common customer service metric that's used across all businesses.
S2: It's called Net Promoter Score. And it's essentially answering the question,
S2: how likely are you to refer this product or service?
S2: And the clients had an almost unheard of Net promoter
S2: score of 83 versus 58. For general advisors, anything over
S2: 75 is considered world class. And they were at 83,
S2: which is just amazing. 81% of Kaia's reported helping clients
S2: incorporate faith based or values based investing, which was amazing.
S2: We love to see that. And then on the generosity front,
S2: that was incredible as well. We were seeing that K
S2: clients were twice as likely to say my my giving has, quote,
S2: significantly increased since working with my certified Kingdom advisor. So,
S2: you know, there's a ton of data, as you might
S2: imagine from a comprehensive study like this, but we were
S2: just really encouraged by the data coming out, just affirming
S2: this idea that when you work with somebody that has
S2: shared values at the heart of your relationship, it's a
S2: game changer. If you want to find a certified Kingdom
S2: advisor in your city, we've just crossed 2000 KAS in
S2: the US and Canada. Pretty big milestone for us here
S2: at Kingdom Advisors. Just go to find ack.com. All right.
S2: Let's go to Oklahoma. Billy go ahead. How can I
S2: help you?
S9: My question is, um, I am just selling a house. Um,
S9: and I've been wanting to open a coin shop. I'm
S9: in the numismatics, um, gold and silver and some of
S9: the other precious metals. Um, but what's going on is, um,
S9: my house is in closing. Um, it's supposed to probably be,
S9: I would say within the next couple of weeks. Um,
S9: I'm working with the, she's a real estate agent, but
S9: she's buying the house herself, so there's no commission on
S9: her part. Um, what do I need to do to,
S9: you know, put that money toward this business on opening,
S9: I got a little bit of a business plan. Um,
S9: I've done some research in marketing and everything. Now, this
S9: area I'm at in Oklahoma is the next, um, biggest
S9: town over is Fort Smith, Arkansas, which is approximately 30
S9: miles away. So I've researched the geographical area, you know, um,
S9: population here is about 10,000. Um Fort Smith is around 100,000.
S9: So what would be your take on that.
S2: Yeah. A couple of questions for you. First of all, congratulations, uh,
S2: on this idea. You know, owning a business can be
S2: a wonderful opportunity. Um, but you want to go into
S2: it with your eyes wide open. So I'm glad you're
S2: asking a lot of questions. I'm glad you have put
S2: a business plan together. That's key. Uh, first would be,
S2: is this going to replace your full time income, Billy,
S2: or will you continue working while you build the business?
S9: No, no, I'll continue working full time. Um, at my
S9: job right now, um, I work it's, uh, it's a
S9: transportation in, um, I've been there for about eight years,
S9: so I got a pretty good retirement. Retirement? It's a
S9: 403 B um, they match it up to 10%, which
S9: is really good. Um, so yeah, I'll be here. Um,
S9: at least, uh, you know, working that part time also.
S2: Great. Yeah, I love that. That's, that's really good. And
S2: how much do you expect the shop to need before
S2: it becomes cash flow positive? I mean, what is your
S2: business plan say?
S9: Well, right now, um, the ratio is probably I'm going
S9: to have to put, um, I would say 100 to
S9: 120,000 in it. Um, because I'm going to, you know,
S9: from the ground up, it's going to be brick and
S9: mortar store. And that brings another point. You know, where
S9: I've talked to some people about the negative side, you know,
S9: they said there, um, there's a lot more businesses and
S9: stuff leaning toward the internet, you know, um, buying coins,
S9: selling coins and stuff like on eBay, Amazon, um, whatnot. So, um,
S9: that's kind of what I'm looking at right now. So
S9: if I sell this house for what I'm selling it,
S9: I'm going to probably need a little bit of a,
S9: I would say a business loan. I wouldn't think a
S9: whole lot. I would assume maybe 30, 35,000.
S2: Yeah. Got it. Okay. That's really helpful. Um, and I'm,
S2: that's encouraging about the opportunity because you're reducing a lot
S2: of the startup risk here, uh, because you're keeping your
S2: full time job. So you're not relying on the coin
S2: shop to feed your family on day one. Uh, and
S2: that's a huge advantage. And so I think the key
S2: is to keep contributing to that 403 B Be especially
S2: with that 10% match. Don't give up that free retirement
S2: money to fund the business. Um, be careful with the
S2: business loan. I would say only borrow truly what you need.
S2: Debt can help a business grow, but it can create
S2: pressure if sales take longer than expected. I would say
S2: don't ignore the internet. You know, these people that are discouraging.
S2: You do have a point that many coins are bought
S2: and sold online today. And so rather than viewing that
S2: as competition, I'd make it a part of your business model.
S2: If you're not already, you could use the storefront to
S2: build relationships and trust, but expand your business online. I
S2: would say also, you know, with any business, but certainly
S2: with a coin shop, it's important to differentiate yourself because
S2: a successful coin shop wins on expertise and trust and
S2: appraisals and estate collections and, you know, maybe Boolean if
S2: you're going to go there, but certainly relationships, not just
S2: selling coins from a display case. Um, and then I
S2: would say, you know, it's important to preserve some liquidity
S2: as well. Don't put every dollar from the home sale
S2: into inventory. You know that cash gives you flexibility when, uh,
S2: when opportunities arise. So, you know, I would always start
S2: with the question, what's going to make me different? You know, when,
S2: what's going to make someone drive past another coin shop
S2: or buy from you instead of eBay? What is your
S2: unique value proposition? Your answer, you know, to that question
S2: is really a key question that every small business owner
S2: has to make. Does that make does that make sense?
S9: It sure does. Yes. You're on point.
S2: Yeah. So, uh, you know, I'd encourage you with Proverbs 215,
S2: the plans of the diligent lead surely to abundance. But
S2: everyone who is hasty comes only to poverty. And so
S2: I think the big idea here is thoughtful planning and
S2: adequate capital. And keeping your stable income while that business
S2: grows is going to give you a much better chance
S2: of long term success. Um, and obviously you're in a
S2: small town, but whoever you can learn from, whether that's
S2: in person or, you know, a virtual mentor of somebody
S2: who's been down this road before, you just, you know,
S2: do your due diligence. And, um, but, but I, I
S2: don't disagree with the direction you're headed here. And, um,
S2: I would just say, make sure you keep, keep some
S2: working capital and don't, don't get to, uh, to lean
S2: on that, uh, liquidity, if that makes sense.
S9: Yes, sir. It sure does. Thank you for all your input.
S2: Absolutely. God bless you, Billy. Congrats on becoming a numismatist. Yeah,
S2: I was I struggle with that. Numismatic coins is a numismatist,
S2: I believe is how you say it. Hey, thanks for
S2: being on the program today. Uh, call anytime. Well, folks,
S2: we're about out of time today. What a treat to
S2: have you along with us. Here's our goal, and our
S2: heart on this program is that you would see God
S2: as your ultimate treasure. You know what the rich fool
S2: got wrong in God's Word in Luke 12 is he
S2: thought it was all his own doing and he was
S2: not rich toward God. Uh, when his life was demanded
S2: of him. That was what, uh, what was said in
S2: God's word. He was not rich toward God. What does
S2: that mean? Well, I think living rich toward God means
S2: seeing God as the riches above everything else, and then
S2: it puts everything in its proper place. I think the
S2: other issue that the rich fool had is he saw
S2: it all as his. And from his own making I
S2: think he used I and my like nine times in
S2: two verses. Look what I did with my hands. Look
S2: what I've created. No, it all comes from God. It's
S2: from his hand. The I is. I am a steward,
S2: a manager of God's resources. That's our hope and prayer
S2: for you is that you would see yourself in that
S2: role each day. It's a high calling. It's a big deal,
S2: and money is something we should enjoy. It shouldn't be
S2: a source of frustration. If we handle it properly and
S2: we live within our means and we avoid debt, and
S2: we give generously and we set long term goals and
S2: we have some liquidity or some margin, we understand God
S2: owns it all. Wow, what a gift to be able
S2: to use money to serve and love others. To bring
S2: about God's redemptive purposes, to grow and create businesses and
S2: employ people that get paid and then give to the
S2: local church and fund missions around the world. It's a
S2: virtuous cycle of God's providence and provision and ultimately of
S2: wealth creation, but it all comes from him. Well, folks,
S2: it's been a joy to be along with you today.
S2: Thanks for inviting us into your story. What a joy
S2: it is to encourage you with God's Word as you
S2: seek to be that wise and faithful steward. Our goal
S2: that you'd see God as your ultimate treasure. Let me
S2: say thanks to my team today. I couldn't do it
S2: without him. Amy. Dan. To hear a Taylor and Omar
S2: faith in Finance Live is a partnership between Moody Radio
S2: and Faith VI. Have a wonderful day and come back
S2: and join us next time for another edition of Faith
S2: and Finance Live.