WEBVTT - Budgeting Tips for Faithful Stewardship 0:00:03.120 --> 0:00:07.000 Today's version of faith and finance live is actually not live. 0:00:07.000 --> 0:00:08.200 So don't call in. 0:00:08.640 --> 0:00:12.920 Proverbs 2723 says, know well the condition of your flocks 0:00:12.920 --> 0:00:16.120 and give attention to your herds. Hi, I'm Rob West. 0:00:16.320 --> 0:00:19.120 We may not be in an agrarian society, but that 0:00:19.120 --> 0:00:23.800 proverb still applies today. Faithful stewardship requires attention. If we 0:00:23.800 --> 0:00:26.160 don't know what we have and where it's going, we 0:00:26.160 --> 0:00:29.080 can't manage it with biblical wisdom. Today, we'll look at 0:00:29.080 --> 0:00:32.080 the best practices of budgeting and why. It's about far 0:00:32.080 --> 0:00:35.360 more than numbers. And we have some great calls lined up, 0:00:35.360 --> 0:00:39.080 but we won't be taking your calls today because we're pre-recorded. 0:00:39.280 --> 0:00:42.520 This is faith and finance. Live biblical wisdom for your 0:00:42.520 --> 0:00:48.279 financial journey. A budget is simply a plan for managing 0:00:48.320 --> 0:00:50.919 what God has entrusted to you. It's not meant to 0:00:50.920 --> 0:00:53.479 be a burden or a source of shame. It's a 0:00:53.479 --> 0:00:57.800 tool for faithfulness. As stewards, we recognize that everything belongs 0:00:57.800 --> 0:01:00.950 to the Lord. That means our income, our savings, our 0:01:00.950 --> 0:01:05.030 spending and our giving all fall under his care and purposes. 0:01:05.190 --> 0:01:09.070 So budgeting begins with a spiritual question before it becomes 0:01:09.069 --> 0:01:12.589 a financial one. Lord, how would you have me manage 0:01:12.590 --> 0:01:16.950 what you've provided? That question changes the purpose of a budget. 0:01:16.950 --> 0:01:19.990 We're not just trying to make the numbers work. We're 0:01:19.990 --> 0:01:24.030 asking whether our financial decisions reflect what we truly value. 0:01:24.350 --> 0:01:27.789 A budget helps reveal patterns. It shows whether our money 0:01:27.790 --> 0:01:32.110 is drifting toward impulse, comfort and accumulation, or whether it's 0:01:32.110 --> 0:01:38.069 being directed toward generosity, provision, responsibility, and contentment. So what 0:01:38.069 --> 0:01:42.310 are some best practices? Well, first, start with giving. Scripture 0:01:42.310 --> 0:01:46.870 never treats generosity as an afterthought. In second Corinthians nine seven, 0:01:46.870 --> 0:01:49.950 Paul writes, each one must give as he has decided 0:01:49.950 --> 0:01:53.670 in his heart, not reluctantly or under compulsion, for God 0:01:53.670 --> 0:01:56.590 loves a cheerful giver. A budget allows us to be 0:01:56.590 --> 0:02:01.020 intentional rather than reactive. Instead of giving only if something 0:02:01.020 --> 0:02:04.740 is left over, we prayerfully decide in advance how we 0:02:04.740 --> 0:02:09.500 want to participate in God's work. Second, know your true income. 0:02:09.620 --> 0:02:12.900 For someone with a fixed paycheck that may be fairly simple. 0:02:12.900 --> 0:02:16.380 You can build your monthly plan around predictable take home pay. 0:02:16.580 --> 0:02:21.420 But for those with variable income, business owners, commission workers, freelancers, 0:02:21.419 --> 0:02:25.619 seasonal workers, or hourly employees, the process takes a little 0:02:25.620 --> 0:02:29.340 more care. If your income changes month to month, build 0:02:29.340 --> 0:02:33.060 your budget around a conservative baseline. Look back over the 0:02:33.060 --> 0:02:37.420 last 6 to 12 months and identify your lower income months. 0:02:37.580 --> 0:02:40.780 Then build your core expenses around that number. Not your 0:02:40.780 --> 0:02:45.540 best month, but a realistic minimum. When higher income months come, 0:02:45.580 --> 0:02:49.900 intentionally allocate the extra dollars, build savings, pay down debt, 0:02:49.900 --> 0:02:54.820 catch up on future expenses, or increase generosity. Third, give 0:02:54.820 --> 0:02:58.900 every dollar a job. That doesn't mean every dollar is spent. 0:02:58.900 --> 0:03:01.780 Saving is a job. Giving is a job. Paying bills 0:03:01.780 --> 0:03:05.780 is a job. Preparing for future car repairs, insurance premiums, 0:03:05.780 --> 0:03:10.060 school expenses, medical needs, or. Christmas is a job. The 0:03:10.100 --> 0:03:14.620 goal is not restriction. The goal is direction. Fourth, plan 0:03:14.620 --> 0:03:19.579 for irregular expenses. Many budgets fail because they only include 0:03:19.580 --> 0:03:26.260 monthly bills, but life includes non-monthly expenses, car maintenance, home repairs, gifts, travel, 0:03:26.260 --> 0:03:30.540 school costs, medical needs, and annual renewals. These are not 0:03:30.540 --> 0:03:34.100 emergencies if we know they're coming. A wise budget sets 0:03:34.100 --> 0:03:38.340 aside small amounts over time so that predictable expenses don't 0:03:38.340 --> 0:03:43.700 become financial surprises. Fifth build margin. Margin is the space 0:03:43.700 --> 0:03:47.860 between income and outgo. Without it, even a small disruption 0:03:47.860 --> 0:03:52.060 can create stress. With it, we're better positioned to respond 0:03:52.060 --> 0:03:56.610 with wisdom when needs arise. Margin can also create room 0:03:56.610 --> 0:04:01.450 for generosity. Ephesians 428 says, we are to work honestly 0:04:01.450 --> 0:04:03.930 so that we may have something to share with anyone 0:04:03.930 --> 0:04:08.810 in need. Budgeting helps us live with that kind of readiness. Six. 0:04:08.850 --> 0:04:12.930 Review and adjust. A budget is not a one time document. 0:04:12.930 --> 0:04:16.170 It's a regular conversation with the Lord, with your spouse. 0:04:16.170 --> 0:04:20.130 If you're married and with reality. Some months need adjustment. 0:04:20.130 --> 0:04:24.250 Some categories may be unrealistic. The goal isn't perfection. The 0:04:24.290 --> 0:04:28.050 goal is faithfulness. And that's where budgeting becomes part of 0:04:28.050 --> 0:04:32.330 our spiritual formation. It teaches us to see continually how 0:04:32.330 --> 0:04:35.409 God has provided. It trains us to say no for 0:04:35.410 --> 0:04:38.450 the sake of a greater yes. It helps us practice 0:04:38.450 --> 0:04:42.570 contentment in a culture of constant comparison. It gives us 0:04:42.570 --> 0:04:47.610 a framework for generosity before money gets absorbed by lesser things. 0:04:47.770 --> 0:04:50.210 So if you're ready to take that next step, we'd 0:04:50.210 --> 0:04:53.050 love to help. The Faith Fi app is the leading 0:04:53.050 --> 0:04:58.080 Christian budgeting app that integrates your faith with practical financial management, 0:04:58.080 --> 0:05:01.440 helping you steward God's money God's way. It's more than 0:05:01.440 --> 0:05:05.600 a budgeting tool. It's a biblical stewardship ecosystem that addresses 0:05:05.600 --> 0:05:08.719 not only the numbers, but also the heart behind them. 0:05:08.839 --> 0:05:13.719 Join 80,000 believers pursuing faithful stewardship and start your 30 0:05:13.760 --> 0:05:21.239 day free trial today at faith fi.com/app. That's faith fi.com/app. 0:05:21.560 --> 0:05:24.119 Much more to come just around the corner. Stay with us. 0:05:35.000 --> 0:05:36.839 So glad to have you with us today on Faith 0:05:36.839 --> 0:05:40.200 and Finance live. Our team is away today, so don't 0:05:40.200 --> 0:05:43.080 call in. But we lined up some great questions in 0:05:43.080 --> 0:05:45.120 advance and we'll be going to those here in just 0:05:45.120 --> 0:05:47.760 a moment. Let me also remind you that the advice 0:05:47.760 --> 0:05:51.040 that I give each day on this program is general 0:05:51.040 --> 0:05:55.550 in nature. We offer principles and ideas that apply at 0:05:55.550 --> 0:05:58.750 a high level. They are not personalized, so that's why 0:05:58.750 --> 0:06:02.470 you should always seek professional financial advice. And if you'd 0:06:02.470 --> 0:06:05.430 like to find a professional who shares your values, we 0:06:05.430 --> 0:06:08.150 of course, here at Faith and Finance Live recommend the 0:06:08.150 --> 0:06:11.790 Certified Kingdom Advisor designation. These are men and women who've 0:06:11.790 --> 0:06:14.870 met high standards, and they've been trained to bring a 0:06:14.870 --> 0:06:19.070 biblical worldview of financial decision making. You can find 1@faith.com. 0:06:19.270 --> 0:06:21.750 Now let's head to the phone calls we have lined up. 0:06:22.070 --> 0:06:24.270 Let's go to Alabama. Brad, how can I help you? 0:06:24.990 --> 0:06:27.390 Yes, Rob, thank you for all your information. You seem 0:06:27.390 --> 0:06:29.630 to be on top of all the issues my wife 0:06:29.630 --> 0:06:33.790 and I were discussing. We're in our 70s and we 0:06:34.270 --> 0:06:36.830 had pensions set up, so we're basically able to live 0:06:36.830 --> 0:06:39.950 off of our pensions. So we've tried to keep this 0:06:39.990 --> 0:06:45.270 invested for the future, for God's work. And I was 0:06:45.270 --> 0:06:48.590 reading about Solomon, how to we've got about 80% of 0:06:48.589 --> 0:06:53.310 our portfolio in stocks and only 20% in bonds. I 0:06:53.350 --> 0:06:56.830 really don't like gold and silver. So how do you 0:06:56.830 --> 0:07:02.110 feel about putting 5% of our portfolio in classic cars? 0:07:03.190 --> 0:07:06.589 Yeah, that's a great question. Uh, you know, if you're 0:07:06.589 --> 0:07:10.030 asking whether classic cars should replace precious metals as a 0:07:10.030 --> 0:07:14.670 meaningful part of your investment portfolio, I'd be cautious. Classic 0:07:14.670 --> 0:07:17.470 cars can be fun, but I would view them as 0:07:17.470 --> 0:07:21.990 a passion investment, not a core retirement investment. Uh, you know, 0:07:22.030 --> 0:07:24.989 there are, of course, illiquid. Takes time to find a buyer. 0:07:25.030 --> 0:07:27.790 You've got to insure them and store them and maintain them. 0:07:27.790 --> 0:07:32.110 And you've got upkeep. And the values can be unpredictable. Uh, 0:07:32.110 --> 0:07:35.710 it's really collector demand. And there's no, of course, income 0:07:35.710 --> 0:07:39.430 stream like dividends or bond interest or rental income. But, 0:07:39.470 --> 0:07:42.750 you know, if you're a car enthusiast and you know, 0:07:42.790 --> 0:07:44.390 you have the ability to do that and you want 0:07:44.390 --> 0:07:48.390 to take 5% of your investable assets to do something 0:07:48.390 --> 0:07:51.580 you enjoy because you, love classic cars and you can 0:07:51.580 --> 0:07:54.260 afford to do that just given the state of your 0:07:54.260 --> 0:07:57.740 overall finances, then I would say go right ahead and 0:07:57.740 --> 0:08:00.860 enjoy that. But I wouldn't view that as a substitute 0:08:00.860 --> 0:08:04.180 for a well-diversified investment portfolio personally. 0:08:05.420 --> 0:08:09.500 What else would you recommend then if, uh, besides maybe 0:08:09.500 --> 0:08:11.380 another 5% of something else? 0:08:11.900 --> 0:08:16.220 Mhm. Yeah. Um, you know, if you don't like gold 0:08:16.220 --> 0:08:19.140 and silver, I think, you know, just the, the stocks 0:08:19.140 --> 0:08:22.500 and bonds would be probably the way to go. Uh, 0:08:22.500 --> 0:08:25.380 I mean, maybe you dial up your bond allocation a 0:08:25.380 --> 0:08:29.180 little bit to reduce portfolio volatility, you know, rather than 0:08:29.180 --> 0:08:33.300 chasing returns. Um, you know, it, uh, the other options 0:08:33.300 --> 0:08:37.699 would be cash and short term treasuries, real estate, although 0:08:37.700 --> 0:08:39.940 in your 70s, I wouldn't encourage you, you know, to 0:08:39.980 --> 0:08:42.940 take on the responsibilities of becoming a landlord unless it's 0:08:42.940 --> 0:08:47.220 something you really enjoy. Um, but I think a broadly 0:08:47.220 --> 0:08:51.210 diversified stock and bond portfolio, with exposure to the US 0:08:51.210 --> 0:08:53.970 and the international markets on the stock side. And, you know, 0:08:54.010 --> 0:08:57.250 short and medium term high quality bonds and treasuries is 0:08:57.250 --> 0:08:59.890 probably the way to go. Um, and if you don't 0:08:59.890 --> 0:09:03.810 want the precious metals, that's perfectly reasonable, but I wouldn't 0:09:03.809 --> 0:09:08.570 feel compelled to replace that with another quote alternative investment personally. 0:09:09.050 --> 0:09:10.250 Okay. Well thank you. 0:09:10.530 --> 0:09:13.449 Absolutely. Let me mention one other thing though, Brad. And 0:09:13.450 --> 0:09:17.890 that is you mentioned your passion to support God's kingdom. And, 0:09:17.929 --> 0:09:19.730 you know, I might think and I don't know what 0:09:19.730 --> 0:09:22.050 you're spending on a monthly basis. I don't know what 0:09:22.050 --> 0:09:24.410 your portfolio size is and I don't need to, but 0:09:24.410 --> 0:09:26.570 the only thing I would just throw out is, you know, 0:09:26.610 --> 0:09:28.370 I hear from a lot of people saying, Rob, I'm 0:09:28.370 --> 0:09:31.490 going to die with one, two, three, $5 million in 0:09:31.490 --> 0:09:34.050 my trust someday. And, you know, then I'll give it 0:09:34.050 --> 0:09:38.010 to God's work. Well, what about defining enough, whatever that 0:09:38.010 --> 0:09:41.370 might be, that's reasonable and allows for the uncertainties that 0:09:41.370 --> 0:09:44.330 might come down the road and accelerating some of that 0:09:44.330 --> 0:09:47.119 giving right now, you might have a blast doing that 0:09:47.120 --> 0:09:51.040 and get it into God's economy sooner, which never is 0:09:51.040 --> 0:09:54.360 a bad thing because there's real needs in the world. 0:09:54.360 --> 0:09:56.280 So that might be the only thing I'd leave you 0:09:56.280 --> 0:09:59.200 with is just think about, is there any portion of 0:09:59.200 --> 0:10:02.079 what God has entrusted to you on your balance sheet 0:10:02.240 --> 0:10:04.480 that you could go ahead and put into, uh, to 0:10:04.520 --> 0:10:06.959 work for the kingdom now, rather than waiting and doing 0:10:06.960 --> 0:10:09.200 all of your giving at death? Something to think about 0:10:09.200 --> 0:10:11.640 that may not apply here. Again, I don't know your details, 0:10:11.640 --> 0:10:13.959 but just something I want to throw out. Brad, thanks 0:10:13.960 --> 0:10:16.200 for your call. Lord bless you, my friend. Thanks for 0:10:16.200 --> 0:10:18.079 being a faithful listener. If I can help in any 0:10:18.080 --> 0:10:21.439 way in the future, give us a call, uh, to Ohio. Hi, John. 0:10:21.440 --> 0:10:22.200 How can I help? 0:10:22.640 --> 0:10:26.559 Yeah. Hi. I was asking a question about my thrift 0:10:26.559 --> 0:10:28.719 savings plan and rolling it over to IRA. 0:10:29.160 --> 0:10:29.679 Okay. 0:10:29.960 --> 0:10:32.160 Would it benefit me to do that? Now I'm getting 0:10:32.160 --> 0:10:35.800 ready to retire, uh, within the next five years. I'm 0:10:35.800 --> 0:10:40.760 eligible now. But, you know, life no retiring right now. But, um, 0:10:40.760 --> 0:10:43.000 so I was told that I could roll it over. 0:10:43.240 --> 0:10:46.589 It would stay fixed at that amount and could only 0:10:46.590 --> 0:10:49.670 go up in that my. I can still keep my 0:10:49.670 --> 0:10:53.429 thrift savings open and still contribute to that. Would that 0:10:53.429 --> 0:10:54.350 be a wise move? 0:10:54.590 --> 0:10:57.150 I like the idea of rolling the TSP out to 0:10:57.190 --> 0:11:00.750 an IRA, but I'd love to know more about it. Can't. 0:11:00.750 --> 0:11:02.830 It can only go up. What are you rolling it 0:11:02.830 --> 0:11:04.590 into like an insurance product? 0:11:05.309 --> 0:11:06.990 You know that. I'm not sure. I just was speaking 0:11:06.990 --> 0:11:09.990 with a guy last night and he was talking to 0:11:09.990 --> 0:11:12.670 me about it. I'm not sure that's what I was 0:11:12.710 --> 0:11:15.390 curious why I was calling you because I'm not quite 0:11:15.390 --> 0:11:18.550 fully understanding what he's talking about to how would that 0:11:18.550 --> 0:11:20.270 be guaranteed that it wouldn't go down? 0:11:20.429 --> 0:11:23.510 Yeah, it's probably an IRA annuity, which is a tax 0:11:23.510 --> 0:11:27.429 deferred annuity, which would not be my first choice. How 0:11:27.429 --> 0:11:29.870 much have you accumulated in that TSP, John? 0:11:30.350 --> 0:11:32.630 It's close to 300, I believe. 0:11:32.830 --> 0:11:36.390 Yeah. Okay. And, uh, how far off is retirement? I 0:11:36.390 --> 0:11:39.190 realize you said you're eligible to retire, but you need 0:11:39.190 --> 0:11:41.870 to continue, you know, to work for a season. How 0:11:41.870 --> 0:11:44.990 far off do you anticipate retiring, at least at this point. 0:11:45.590 --> 0:11:47.069 No more than five years. 0:11:47.309 --> 0:11:51.070 Okay. Got it. And what will you have in addition 0:11:51.070 --> 0:11:53.790 to this 300,000 and what it grows to over the 0:11:53.790 --> 0:11:56.790 next five years for retirement? Will you be eligible for 0:11:56.790 --> 0:11:57.790 Social Security? 0:11:58.390 --> 0:12:00.910 Yes, I'm 60. I'm 60 right now. 0:12:01.350 --> 0:12:04.030 Okay. And so do you have a sense of what 0:12:04.030 --> 0:12:06.870 that will be just based on your benefit statement? 0:12:07.429 --> 0:12:09.390 My my social security. 0:12:09.429 --> 0:12:09.990 Yes, sir. 0:12:10.550 --> 0:12:13.510 I think it's around 1100 or 1400 a month. Something 0:12:13.510 --> 0:12:14.069 like that. 0:12:14.230 --> 0:12:16.710 Okay. Got it. Yeah. So I mean, if let's say 0:12:16.710 --> 0:12:20.870 this grows to 350,000, I'd be comfortable with you pulling 4% 0:12:20.870 --> 0:12:23.790 a year just as a starting point. So that'd be 0:12:23.830 --> 0:12:25.870 a little more than a, you know, a thousand a month. 0:12:25.870 --> 0:12:27.630 So let's call it 1100 a month. If you add 0:12:27.630 --> 0:12:31.670 that to 1400 a month, we're talking about 2500 a month. 0:12:31.670 --> 0:12:34.390 I think the question would be, you know, is that enough? 0:12:34.390 --> 0:12:38.110 Do you have any other income sources in retirement, or 0:12:38.270 --> 0:12:40.750 would you be trying to make it just on Social 0:12:40.750 --> 0:12:42.670 Security plus your TSP? 0:12:43.580 --> 0:12:46.660 I'll have my retirement from the postal service also. 0:12:46.700 --> 0:12:49.620 Okay, great. Yeah. So could it be that between the 0:12:49.620 --> 0:12:53.300 Postal Service, retirement and Social Security, the goal might be 0:12:53.300 --> 0:12:56.260 that you don't even touch the 350,000, if that's what 0:12:56.260 --> 0:12:56.900 it grows to? 0:12:57.500 --> 0:12:58.500 That's my hopes. 0:12:58.660 --> 0:13:01.500 Yeah. Okay, good. Well, I think that puts you in 0:13:01.500 --> 0:13:04.780 a great position, because if you can limit your lifestyle 0:13:04.780 --> 0:13:08.740 live on your post-retirement plus Social Security, you know, that 0:13:08.740 --> 0:13:11.700 would be ideal. And then I'd be looking to roll 0:13:11.700 --> 0:13:14.459 that TSP over to an IRA and have an advisor 0:13:14.460 --> 0:13:17.140 manage it for you, rather than putting it in an 0:13:17.140 --> 0:13:21.780 insurance company. There is something nice by transferring the risk 0:13:21.980 --> 0:13:25.820 away from the markets to an insurance company in the 0:13:25.820 --> 0:13:28.860 form of an annuity type product, because there's a floor 0:13:28.860 --> 0:13:32.099 on it. To your point earlier, you can't lose money. 0:13:32.340 --> 0:13:36.220 The downside is in exchange for that floor, there's always 0:13:36.220 --> 0:13:38.980 a cost for it. And the cost is you're not 0:13:38.980 --> 0:13:41.890 going to get the full upside. And so, you know, 0:13:41.929 --> 0:13:45.090 the way we get the, the better, you know, annual 0:13:45.090 --> 0:13:48.210 average annual returns is we take the up with the 0:13:48.250 --> 0:13:53.530 down and we manage that risk through diversification and, and 0:13:53.530 --> 0:13:58.290 asset allocation. So, you know, if you're retiring at 65, 0:13:58.330 --> 0:14:02.330 let's say, you know, we might put 40 to 45% 0:14:02.330 --> 0:14:06.209 in stocks, 55 to 60% in bonds, maybe a small 0:14:06.210 --> 0:14:09.210 portion of precious metals. We try to smooth it out, 0:14:09.250 --> 0:14:11.890 get a nice yield coming in. But the real benefit 0:14:11.890 --> 0:14:14.490 is even though you're taking on some risk, you are 0:14:14.490 --> 0:14:18.050 getting 100% of the upside and you have access to 0:14:18.090 --> 0:14:20.650 the money if you needed it for long term care 0:14:20.650 --> 0:14:23.450 or some other event. So I like rolling it to 0:14:23.450 --> 0:14:26.810 an IRA and finding a certified Kingdom advisor to manage it. 0:14:26.810 --> 0:14:28.930 Let's finish up off the air. We'll be right back. 0:14:34.890 --> 0:14:37.410 You're listening to Faith and finance Live, and you can 0:14:37.410 --> 0:14:43.200 find us 5.com. However, today we are not live. So 0:14:43.200 --> 0:14:46.040 if you hear that phone number, please don't call, but 0:14:46.040 --> 0:14:49.119 do stay with us. There's lots of good information ahead. 0:14:50.080 --> 0:14:52.280 Let's go to Illinois. Hi, Carolyn. How can I help you? 0:14:52.840 --> 0:14:56.320 Hi. The reason for my call, it's. I guess it's 0:14:56.320 --> 0:14:58.560 sort of a two part question, but I also wanted 0:14:58.560 --> 0:15:01.240 to express. When I went to the bank, I was 0:15:01.240 --> 0:15:05.920 offered a opportunity to have a HELOC. I don't need it, 0:15:06.200 --> 0:15:09.240 but they have a promotion going and there are no 0:15:09.240 --> 0:15:11.960 fees and this and that. But one of the things 0:15:11.960 --> 0:15:14.000 that I want to point out is that when I 0:15:14.000 --> 0:15:17.800 was going through the paperwork, it was because of this 0:15:17.800 --> 0:15:22.240 program that I was able to understand much better what 0:15:22.240 --> 0:15:26.560 I was reading and go back today and ask questions. 0:15:26.560 --> 0:15:29.640 I was able to ask questions about, you know, the 0:15:29.680 --> 0:15:32.680 index in terms of, you know, what you're going to 0:15:32.720 --> 0:15:35.560 pay in interest, the index, and then the margin that 0:15:35.560 --> 0:15:38.280 they add on. And then the Apr and all those 0:15:38.400 --> 0:15:42.160 things were very clear to me in terms of being 0:15:42.160 --> 0:15:46.440 able to ask intelligent questions and understand what they were saying. 0:15:46.440 --> 0:15:48.280 So I just wanted to let you know that it 0:15:48.280 --> 0:15:50.680 was because I listened to this program that I was 0:15:50.680 --> 0:15:52.240 able to comprehend that. 0:15:52.520 --> 0:15:55.320 And I'm so glad to hear that. That's great. Well, 0:15:55.320 --> 0:15:55.880 I'm delighted. 0:15:55.880 --> 0:15:58.480 We could have been a resource for you. It's always 0:15:58.480 --> 0:16:00.680 helpful when you go in somewhere and you have a 0:16:00.760 --> 0:16:03.880 little bit of a knowledge base to build on and 0:16:03.880 --> 0:16:06.400 ask the right questions so that that thrills me to 0:16:06.440 --> 0:16:09.680 no end. Carolyn. Well, specifically related to that HELOC, what 0:16:09.680 --> 0:16:10.680 are you thinking about? 0:16:11.120 --> 0:16:14.040 Okay, well, I don't need the thing. And they were 0:16:14.320 --> 0:16:17.120 they were offering it. And if you have anything that 0:16:17.120 --> 0:16:19.840 you want to say about them, that's fine. The nature 0:16:19.840 --> 0:16:24.000 of my question was that I noticed with this HELOC, 0:16:24.000 --> 0:16:26.200 and I've noticed in the past, like for instance, if 0:16:26.200 --> 0:16:29.280 you're buying a car, when they do a hard check 0:16:29.280 --> 0:16:32.760 on your credit, what they come back with seems to 0:16:32.800 --> 0:16:38.310 be significantly different than what the consumer products offer. So, 0:16:38.310 --> 0:16:45.350 for example, I never fall below 800 when I'm checking online. 0:16:45.350 --> 0:16:52.070 But for example, today Equifax showed 780 when the information 0:16:52.070 --> 0:16:54.070 that I got in the mail from the bank. Now, 0:16:54.070 --> 0:16:57.550 when I go online with the consumer resources and I 0:16:57.550 --> 0:17:02.150 check Equifax, it says 804. And even if you do 0:17:02.150 --> 0:17:05.709 a hard check, generally, you know, it's not going to 0:17:05.710 --> 0:17:09.870 be a 20 plus spread difference and it wouldn't bounce 0:17:09.869 --> 0:17:14.310 back that quickly. So my initial question is, is why 0:17:14.310 --> 0:17:17.590 is this such a significant difference between what the consumer 0:17:17.590 --> 0:17:22.149 has access to versus the, you know, corporate or whatever? 0:17:22.190 --> 0:17:24.590 Yeah, it's a great question. And you're exactly right. They 0:17:24.590 --> 0:17:28.909 can vary pretty significantly. And it comes down to the 0:17:28.910 --> 0:17:35.429 difference between consumers and lenders using different formulas that weight 0:17:35.580 --> 0:17:40.700 information differently. So, for example, lenders may use different versions 0:17:40.700 --> 0:17:45.580 of a Fico score that's industry specific for certain types 0:17:45.580 --> 0:17:49.060 of loans. And so that means it's a different algorithm 0:17:49.180 --> 0:17:54.500 and it places weight on different factors versus the consumer 0:17:54.540 --> 0:17:57.580 version of that. That might use a completely different formula 0:17:57.580 --> 0:18:00.500 that results in a higher score. So they should be 0:18:00.500 --> 0:18:04.340 of course in the ballpark. Um, but it's not unusual 0:18:04.340 --> 0:18:06.700 for them to be different by any means. And that's 0:18:06.700 --> 0:18:09.220 why a lender is always going to want to pull 0:18:09.220 --> 0:18:11.619 their own credit report. Even if you were to say, hey, 0:18:11.619 --> 0:18:13.740 I just pulled this the other day, here it is. 0:18:14.060 --> 0:18:16.060 They're not going to accept it because they want to 0:18:16.060 --> 0:18:19.460 run it through their own formulas because they know that 0:18:19.460 --> 0:18:23.820 they're using certain, uh, you know, formulas with certain weightings 0:18:23.820 --> 0:18:26.900 for a specific type of loan that you're seeking. So 0:18:26.940 --> 0:18:30.580 that's usually the difference there with regard to that HELOC. 0:18:30.740 --> 0:18:32.979 You know, some folks will say, well, I ought to 0:18:32.980 --> 0:18:35.330 go ahead and get it, even if I'm not going 0:18:35.369 --> 0:18:37.050 to use it. Because what if I needed it in 0:18:37.050 --> 0:18:39.449 the future and I couldn't qualify for it? And as 0:18:39.450 --> 0:18:41.330 long as I don't borrow against it, I'm not having 0:18:41.330 --> 0:18:43.770 to pay anything. And I would just challenge that a 0:18:43.770 --> 0:18:47.530 little bit. Even if there's not upfront fees, which usually 0:18:47.530 --> 0:18:50.290 there are some costs, closing costs and so forth. But 0:18:50.290 --> 0:18:53.250 even if they're saying, listen, we won't charge any of that, 0:18:53.250 --> 0:18:56.290 then often there are other expenses. There might be an 0:18:56.290 --> 0:18:59.449 inactivity charge, there may be, you know, other kind of 0:18:59.490 --> 0:19:03.690 monthly charges that they impose upon you that you know, 0:19:03.730 --> 0:19:07.129 will cost you something over time. You also have the 0:19:07.130 --> 0:19:10.609 impact to your credit because that's another loan that's outstanding. 0:19:10.609 --> 0:19:13.930 Even if you're not using it, that's a credit that's 0:19:13.930 --> 0:19:16.850 available to you, which will be factored in. So I 0:19:16.850 --> 0:19:19.730 think I would just make sure you have a purpose 0:19:19.730 --> 0:19:22.649 for it. And if you don't, I'd probably be inclined 0:19:22.690 --> 0:19:25.290 not to. There might be some that would say, as 0:19:25.290 --> 0:19:27.410 long as there's no fees and you'd want to double 0:19:27.410 --> 0:19:30.129 check that, that it's worth getting just to have access 0:19:30.130 --> 0:19:32.330 to it if you needed it down the road, I 0:19:32.330 --> 0:19:35.850 would probably opt not to. The last reason is often 0:19:35.850 --> 0:19:38.930 there's a temptation to use it because it's there even 0:19:38.930 --> 0:19:41.610 when you don't really need it. So anyway, I hope 0:19:41.609 --> 0:19:43.970 those things are helpful. Thanks for your kind remarks about 0:19:43.970 --> 0:19:47.090 the program, Carolyn. We appreciate you being on today. We're 0:19:47.090 --> 0:19:49.530 going to head to Tennessee and talk to John. Go 0:19:49.570 --> 0:19:50.090 ahead sir. 0:19:50.810 --> 0:19:53.850 Hello, Rob. I've learned a lot from you over the years. 0:19:53.850 --> 0:19:54.490 Thank you. 0:19:54.930 --> 0:19:56.169 Absolutely. Thank you. 0:19:56.530 --> 0:20:01.690 You're welcome. I'm a retired pastor. I preach a lot 0:20:01.690 --> 0:20:06.129 of funerals and have extra income. And it seems like 0:20:06.130 --> 0:20:10.129 the tax law has changed about how much to report 0:20:10.130 --> 0:20:13.530 and when do we fall into self-employment and have to 0:20:13.530 --> 0:20:17.650 pay Social Security taxes and that sort of thing? Can 0:20:17.650 --> 0:20:18.330 you help me? 0:20:18.730 --> 0:20:21.250 Yeah, I'd be happy to. And I'm delighted to hear 0:20:21.250 --> 0:20:23.169 you're asking this question, because we certainly want to get 0:20:23.170 --> 0:20:26.290 this right. You know, the tax law hasn't changed, even 0:20:26.290 --> 0:20:29.170 though there's been a lot of changes as of late, 0:20:29.170 --> 0:20:32.200 largely because of the one big, beautiful bill and other 0:20:32.640 --> 0:20:37.600 changes recently the Secure act 2.0 and others. It hasn't 0:20:37.600 --> 0:20:43.480 changed in the sense that self-employment income has become exempt. Um, 0:20:43.480 --> 0:20:46.960 you know, if you're receiving compensation for performing funerals as 0:20:46.960 --> 0:20:50.440 a retired pastor, that income is going to be generally 0:20:50.440 --> 0:20:54.719 taxable and would likely be subject to self-employment tax depending 0:20:54.720 --> 0:20:57.960 on your situation. So the key points to understand are, 0:20:57.960 --> 0:21:01.720 first of all, all income is reportable regardless of the 0:21:01.720 --> 0:21:07.640 amount unless a specific exclusion applies self-employment tax. So that's 0:21:07.640 --> 0:21:12.160 Social Security. And Medicare generally applies once your net earnings 0:21:12.160 --> 0:21:17.560 from self-employment are $400 or more for the year and 0:21:17.560 --> 0:21:20.359 your age doesn't exempt you. So regardless of your age, 0:21:20.359 --> 0:21:24.560 these rules apply. Uh. There are a few special tax 0:21:24.560 --> 0:21:29.879 rules for clergy. If you've previously filed the form 4361 0:21:29.950 --> 0:21:34.430 and you receive that as an exemption from self-employment tax 0:21:34.430 --> 0:21:38.590 on ministerial earnings. That could change something. Um, so that 0:21:38.590 --> 0:21:40.670 would be one question that we could talk about. But 0:21:40.670 --> 0:21:45.030 other than that everything is generally reportable. And self-employment tax 0:21:45.030 --> 0:21:47.470 kicks in at $400 or more. I've got to hit 0:21:47.470 --> 0:21:49.350 this break John. But let me get your follow up 0:21:49.350 --> 0:21:53.149 questions after the break and we'll finish our conversation. Amy. Billy, 0:21:53.150 --> 0:21:54.830 coming your way as well. Stay with us. 0:22:04.830 --> 0:22:08.590 You're listening to Faith and finance live. This program is prerecorded, 0:22:08.590 --> 0:22:11.390 so we're not available to answer your calls, but you 0:22:11.390 --> 0:22:16.189 can email us your questions at ask rob@faith.com. 0:22:17.590 --> 0:22:21.230 Before the break, we were talking to John. He's 77, retired, 0:22:21.230 --> 0:22:24.590 wondering about self-employment income that needs to be reported to 0:22:24.630 --> 0:22:27.750 the IRS. He's a retired pastor, but he's preaching at 0:22:27.750 --> 0:22:31.540 some funerals, earning some extra income. Wondering if any recent 0:22:31.540 --> 0:22:34.780 tax law changes affect him. And as I had shared, 0:22:34.780 --> 0:22:37.260 although there have been a number of tax law changes, 0:22:37.500 --> 0:22:41.060 the tax law hasn't changed in the sense that self-employment 0:22:41.060 --> 0:22:44.859 income has become exempt in any way. All income generally 0:22:44.859 --> 0:22:50.899 reportable self-employment tax kicks in over $400 for the year, 0:22:50.900 --> 0:22:53.659 and you have to or legally required to file a 0:22:53.660 --> 0:22:57.100 tax return and report that income. And that would automatically 0:22:57.100 --> 0:23:00.980 trigger that $400 threshold. The requirement to pay self-employment tax, 0:23:00.980 --> 0:23:05.180 which covers Medicare and Social Security. And it applies to everyone. 0:23:05.180 --> 0:23:07.980 There is a carve out, though, for those that have, quote, 0:23:08.020 --> 0:23:11.660 opted out for ministerial reasons of Social Security. And John, 0:23:11.660 --> 0:23:13.180 you and I talked off the air and you said 0:23:13.180 --> 0:23:16.419 you have opted out. And so if that was done 0:23:16.420 --> 0:23:19.859 through the proper form and accepted by the IRS, then, 0:23:19.900 --> 0:23:21.900 you know, that would change things a bit. I would 0:23:21.900 --> 0:23:24.859 talk to your CPA about that because you would likely 0:23:24.859 --> 0:23:30.090 not owe self-employment tax, Social Security and Medicare on ministerial earnings, 0:23:30.090 --> 0:23:35.050 including those funerals, because you have you know, you're exempt 0:23:35.050 --> 0:23:37.929 and that's irrevocable. So you would still report the income 0:23:37.930 --> 0:23:41.250 for income tax purposes. But the exemption is from the 0:23:41.250 --> 0:23:45.010 self-employment tax. So any follow up thoughts on that though. 0:23:45.810 --> 0:23:53.370 Well, Rob, uh, my tax preparer mentioned a $2,000 figure, uh, 0:23:53.369 --> 0:23:57.050 and gave me the impression that other income other than 0:23:57.490 --> 0:24:06.210 Honorariums and 43, 61 income wasn't reportable until you reached $2,000. 0:24:06.450 --> 0:24:09.850 And I'm thinking there is other income at times from 0:24:09.850 --> 0:24:15.170 assisting but not preaching, uh, at a funeral home, uh, 0:24:15.290 --> 0:24:20.810 precinct voting worker, you know, there's some income there. Uh, 0:24:20.850 --> 0:24:23.490 do you see see how it seems complicated to me, 0:24:23.490 --> 0:24:24.450 and I'm not sure. 0:24:24.810 --> 0:24:25.850 I totally do. 0:24:25.890 --> 0:24:27.649 Yeah, I want to honor Christ. 0:24:28.010 --> 0:24:32.129 Of course. Yeah, absolutely. Uh, yeah. So there isn't a 0:24:32.130 --> 0:24:35.449 general rule that says, uh, that the first 2000 of 0:24:35.450 --> 0:24:39.890 self-employment income or other income isn't reportable. Um, you know, 0:24:39.930 --> 0:24:42.449 he may be referring to something else. Maybe it's a 0:24:42.450 --> 0:24:47.290 specific reporting threshold for a particular type of payment or, uh, 0:24:47.290 --> 0:24:51.090 a rule that applied to a particular credit. Um, so 0:24:51.130 --> 0:24:52.730 I might go back to him and just ask for 0:24:52.730 --> 0:24:55.530 clarification there. But, you know, I think at the end 0:24:55.530 --> 0:25:00.250 of the day, the income is reportable, the self-employment income. Uh, again, 0:25:00.250 --> 0:25:04.490 if you have the approved 43, 61 exemption, you know, 0:25:04.530 --> 0:25:07.930 that would not apply. But I'm not aware of any 0:25:07.930 --> 0:25:11.490 general rule around a $2,000 exemption. So you may just 0:25:11.490 --> 0:25:14.770 want to get some clarity on that from your CPA. John. 0:25:14.770 --> 0:25:17.889 I hope that helps. Appreciate your service to our Lord. And, uh, 0:25:17.890 --> 0:25:19.689 if I can help further along the way, don't hesitate 0:25:19.690 --> 0:25:21.890 to reach out. Let's go to Texas. Amy. How can 0:25:21.890 --> 0:25:22.369 I help? 0:25:23.730 --> 0:25:27.000 Hey, Rob, thanks so much for your ministry. We really 0:25:27.000 --> 0:25:31.320 appreciate it. Um, my husband and I have been blessed 0:25:31.320 --> 0:25:37.040 beyond measure. Um, I mean, we're not, uh, I guess 0:25:37.040 --> 0:25:40.000 from the world standard have a lot from a financial 0:25:40.000 --> 0:25:43.080 point of view, but we have more than we'll ever use. 0:25:43.320 --> 0:25:46.520 And we want to bless the Lord with that. And we, 0:25:46.840 --> 0:25:53.960 we stand to inherit from both sides of the family financially. 0:25:54.359 --> 0:25:57.360 And we want to do right by God. We are 0:25:57.359 --> 0:26:01.120 currently totally out of debt. Um, we have, throughout our 0:26:01.119 --> 0:26:03.960 marriage learned to live within our means as hard as 0:26:04.000 --> 0:26:07.640 that can be. We have two grown sons and one 0:26:07.640 --> 0:26:11.280 is married and we have two grandchildren. We tend to 0:26:11.320 --> 0:26:15.720 get paralysis in the analysis. We have been to several 0:26:15.720 --> 0:26:18.520 different classes. We know what we need to do. We 0:26:18.520 --> 0:26:21.720 just need somebody to come alongside of us and view 0:26:22.280 --> 0:26:25.989 where we are right now and what we want to 0:26:25.990 --> 0:26:29.990 do with it. In the name of Jesus. Yeah. Um, 0:26:30.390 --> 0:26:33.030 how can we get help with that? I know, you know, 0:26:33.070 --> 0:26:36.790 we've talked to different, we, we moved to Texas about 0:26:36.790 --> 0:26:39.590 ten years ago. So we're still getting, you know, somewhat 0:26:39.590 --> 0:26:42.830 the lay of the land. Um, my dad passed away 0:26:42.830 --> 0:26:47.070 in November and we have not fully received all of 0:26:47.109 --> 0:26:52.310 that inheritance. Um, and again, we want to know, you know, 0:26:52.350 --> 0:26:55.110 so often when people look at us, look at our 0:26:55.109 --> 0:26:57.590 financial numbers, you know, they want us to go straight 0:26:57.590 --> 0:27:01.310 to investing kind of thing. And we need to understand 0:27:01.310 --> 0:27:05.350 that part of it. But we also need to plan 0:27:05.350 --> 0:27:09.070 for our future and for our children and grandchildren's future. 0:27:09.190 --> 0:27:13.150 Yeah. Well, Amy, what an incredible place to be. I 0:27:13.190 --> 0:27:15.670 love this question because you start by saying, I want 0:27:15.710 --> 0:27:19.750 to just acknowledge God's faithfulness and his provision and his abundance, 0:27:20.109 --> 0:27:22.699 and we want to be good stewards. We want to 0:27:22.859 --> 0:27:25.659 be faithful in how we manage this for God's glory. 0:27:25.660 --> 0:27:28.820 And that can include giving that can including investing, which 0:27:28.820 --> 0:27:31.420 is a part of God's plan for, you know, human 0:27:31.420 --> 0:27:35.220 flourishing and for promoting the common good, even participating in 0:27:35.220 --> 0:27:38.580 God's redemptive purposes. We want to be well planned for 0:27:38.619 --> 0:27:40.979 the for the future and think about, you know, what 0:27:40.980 --> 0:27:43.540 might come down the road. And we want to surrender 0:27:43.540 --> 0:27:46.020 all of that to the Lord. And that's exactly the 0:27:46.020 --> 0:27:49.020 right posture, I think, for all of us. And you 0:27:49.020 --> 0:27:52.900 need a partner in that, somebody who understands the power 0:27:52.900 --> 0:27:56.180 of money as a tool to accomplish God's purposes, both 0:27:56.180 --> 0:28:00.260 in terms of for the future, but also to be, 0:28:00.300 --> 0:28:03.980 you know, given away and to be invested and held loosely, um, 0:28:04.020 --> 0:28:07.420 for God's purposes as well. And all nothing, you know, in, 0:28:07.420 --> 0:28:10.180 in any part of that, nothing is better than another. 0:28:10.180 --> 0:28:13.420 It's all a part of a virtuous cycle. I think 0:28:13.420 --> 0:28:17.380 of using God's money in a way that brings God glory. Um, 0:28:17.420 --> 0:28:20.659 where are you guys as you think and pray right now. 0:28:20.700 --> 0:28:23.660 Kind of. What is the thing that really trips you up? 0:28:23.700 --> 0:28:29.340 You mentioned analysis paralysis. Is it not understanding the investment 0:28:29.340 --> 0:28:32.940 markets and investment strategy? Is it how much you should 0:28:32.940 --> 0:28:35.379 keep versus how much you should give away? Is it 0:28:35.420 --> 0:28:37.820 where to give? Like, is it all of it? Like, 0:28:37.859 --> 0:28:40.660 what are the issues that typically trip you guys up 0:28:40.660 --> 0:28:41.940 for making decisions? 0:28:42.340 --> 0:28:47.500 I think it's the investment strategies. It's also like, as you, 0:28:47.540 --> 0:28:51.620 you age, um, when you take Medicare, Medicaid, should you 0:28:51.620 --> 0:28:54.340 do Social Security? When should you take that? So it's 0:28:54.340 --> 0:28:58.420 very much the investment strategies. And also when we, you know, 0:28:58.460 --> 0:29:02.660 when we, when we speak to people, you know, about it, 0:29:02.700 --> 0:29:05.740 it's kind of they're looking at the lump sums and 0:29:05.740 --> 0:29:10.900 they give good information. But um, my husband too, we're 0:29:10.900 --> 0:29:15.020 both very hands on. We love to serve. Um, so 0:29:15.060 --> 0:29:17.420 for us just to write the check, it kind of 0:29:17.460 --> 0:29:20.650 has to come with the serving alongside of it. Yeah, yeah. 0:29:20.690 --> 0:29:23.770 So in some ways that helps narrow down for us 0:29:23.770 --> 0:29:27.490 what ministries we want to give to. Yeah. Um. 0:29:28.130 --> 0:29:28.810 So it makes. 0:29:28.810 --> 0:29:31.250 Sense kind of, you know, being the hands on kind 0:29:31.290 --> 0:29:31.890 of thing. 0:29:31.970 --> 0:29:33.770 Um, yeah. Yeah. Excellent. 0:29:33.810 --> 0:29:36.090 It's a, it's a beautiful predicament. We like to. 0:29:36.130 --> 0:29:37.210 Yes, it sure. 0:29:37.210 --> 0:29:40.650 Is blessed to be a blessing. Yeah. Um, but you 0:29:40.650 --> 0:29:46.290 and I both know that as you increase in your wealth, 0:29:46.730 --> 0:29:50.170 somehow that word gets out there and people want you 0:29:50.170 --> 0:29:52.730 to give to their, their legitimate causes. 0:29:52.930 --> 0:29:54.250 Yeah. So it's also. 0:29:54.290 --> 0:29:58.770 A faith walk in, you know, okay, what direction can 0:29:58.810 --> 0:30:01.250 we go? You know, we're looking at, you know, how 0:30:01.250 --> 0:30:03.610 can we help our family at this point? We have 0:30:03.650 --> 0:30:07.130 one son married, one son, not, um, and they're around 0:30:07.130 --> 0:30:11.170 the same ages and, you know, trying to decipher, okay, 0:30:11.370 --> 0:30:14.290 what's best for either one of them at any given time. 0:30:14.530 --> 0:30:17.680 Yeah. This is so good. Well, this is perfect for 0:30:17.680 --> 0:30:19.960 a certified Kingdom advisor. And I don't know whether you've 0:30:19.960 --> 0:30:22.080 reached out to a c k in the past, but 0:30:22.080 --> 0:30:24.800 I'd love to personally connect you with somebody who can 0:30:24.800 --> 0:30:27.640 just walk alongside you, because what you need is the 0:30:27.640 --> 0:30:31.000 comprehensive financial planning, which would uncover, you know, how much 0:30:31.000 --> 0:30:34.040 you need for the future, how to invest it appropriately, 0:30:34.280 --> 0:30:37.640 how to plan for, you know, uh, long term care 0:30:37.640 --> 0:30:40.840 if you need it, inheritance, but also your giving. And 0:30:40.840 --> 0:30:44.000 an advisor who understands that in light of biblical wisdom 0:30:44.040 --> 0:30:46.360 could be just absolutely essential. I'm going to have my 0:30:46.360 --> 0:30:48.760 team get your information, and I'll personally connect you with 0:30:48.760 --> 0:30:50.880 a few people that could serve you really well. We'll 0:30:50.880 --> 0:30:51.560 be right back. 0:31:05.040 --> 0:31:07.560 This is our final segment of a faith and finance 0:31:07.560 --> 0:31:10.920 live program that we previously recorded. Thanks so much for 0:31:10.920 --> 0:31:13.160 being with us today, and we hope you'll stick around 0:31:13.160 --> 0:31:15.280 and enjoy the rest of the program. 0:31:16.550 --> 0:31:19.270 Boy, what a treat to talk to the previous caller. 0:31:19.310 --> 0:31:22.270 You know, I think, um, you know, as Amy was describing, 0:31:22.270 --> 0:31:24.790 they want to be found faithful. And one of the 0:31:24.790 --> 0:31:28.150 consistent themes in Scripture is that wisdom is not something 0:31:28.150 --> 0:31:31.630 we're meant to pursue alone. You know, from Genesis to Revelation, 0:31:31.630 --> 0:31:36.150 God repeatedly reminds us as his people that clarity and 0:31:36.150 --> 0:31:39.670 protection and faithfulness are often found through the counsel of others, 0:31:39.670 --> 0:31:43.710 especially counsel rooted in reverence for him. You know, Proverbs 0:31:43.710 --> 0:31:46.590 1114 comes to mind where there is no guidance, a 0:31:46.590 --> 0:31:50.630 people falls, but in an abundance of counselors there is safety. 0:31:50.630 --> 0:31:53.550 And that's why we did this study of certified Kingdom 0:31:53.550 --> 0:31:57.670 advisors and their clients versus traditional advisors and their clients. 0:31:57.670 --> 0:32:02.310 And the data was just remarkable as we uncovered really 0:32:02.310 --> 0:32:04.790 the benefits of working with an advisor who's been trained 0:32:04.790 --> 0:32:08.670 to bring biblical wisdom and to walk alongside you and 0:32:08.670 --> 0:32:12.070 help you express your values through your investments, through your giving, 0:32:12.070 --> 0:32:15.390 through your financial management. Here's some of the data that 0:32:15.390 --> 0:32:20.950 came out of it. 64% of general clients that the 0:32:20.990 --> 0:32:25.310 top reason they selected their advisor was investment returns. That 0:32:25.310 --> 0:32:28.430 was the top reason at 64%. The top reason for 0:32:28.470 --> 0:32:32.830 the clients was that they wanted shared beliefs and values. 0:32:32.830 --> 0:32:35.470 So clearly, right out of the gate, you know, the 0:32:35.470 --> 0:32:37.710 clients of the C, K A are choosing the C, 0:32:37.710 --> 0:32:41.630 k a because they want those shared values. They understand 0:32:41.950 --> 0:32:47.510 the biblical emphasis on aligned counsel isn't just theoretical. You know, 0:32:47.550 --> 0:32:52.870 we see that shared values profoundly shape trust and clarity 0:32:53.030 --> 0:32:56.750 and long term faithfulness in relationships. And that's why. And 0:32:56.750 --> 0:32:59.510 here's the second data point I'll highlight is that as 0:32:59.510 --> 0:33:05.430 we looked at the retention rate of the CKAS, the 0:33:05.470 --> 0:33:10.550 c k clients reported a 98% retention rate. That was 0:33:10.550 --> 0:33:14.660 extraordinary trust and stability in the relationship over the three 0:33:14.660 --> 0:33:19.100 years prior to the survey. Whereas the general advisers were 0:33:19.100 --> 0:33:22.459 at 75%. So still good, but not anywhere close to 0:33:22.500 --> 0:33:27.420 a 98% retention rate. They also had, if you're familiar 0:33:27.420 --> 0:33:30.980 with the term Net Promoter score, which is essentially it's 0:33:30.980 --> 0:33:35.300 a very common customer service metric that's used across all businesses. 0:33:35.340 --> 0:33:38.380 It's called Net Promoter Score. And it's essentially answering the question, 0:33:38.380 --> 0:33:42.340 how likely are you to refer this product or service? 0:33:42.540 --> 0:33:46.700 And the clients had an almost unheard of Net promoter 0:33:46.700 --> 0:33:51.940 score of 83 versus 58. For general advisors, anything over 0:33:51.940 --> 0:33:56.060 75 is considered world class. And they were at 83, 0:33:56.060 --> 0:34:01.020 which is just amazing. 81% of Kaia's reported helping clients 0:34:01.020 --> 0:34:05.060 incorporate faith based or values based investing, which was amazing. 0:34:05.060 --> 0:34:08.739 We love to see that. And then on the generosity front, 0:34:08.739 --> 0:34:13.770 that was incredible as well. We were seeing that K 0:34:13.810 --> 0:34:18.450 clients were twice as likely to say my my giving has, quote, 0:34:18.489 --> 0:34:23.850 significantly increased since working with my certified Kingdom advisor. So, 0:34:24.170 --> 0:34:25.930 you know, there's a ton of data, as you might 0:34:25.969 --> 0:34:28.850 imagine from a comprehensive study like this, but we were 0:34:28.850 --> 0:34:33.489 just really encouraged by the data coming out, just affirming 0:34:33.489 --> 0:34:35.810 this idea that when you work with somebody that has 0:34:35.810 --> 0:34:39.090 shared values at the heart of your relationship, it's a 0:34:39.090 --> 0:34:41.410 game changer. If you want to find a certified Kingdom 0:34:41.410 --> 0:34:45.250 advisor in your city, we've just crossed 2000 KAS in 0:34:45.250 --> 0:34:47.489 the US and Canada. Pretty big milestone for us here 0:34:47.489 --> 0:34:51.969 at Kingdom Advisors. Just go to find ack.com. All right. 0:34:51.969 --> 0:34:53.850 Let's go to Oklahoma. Billy go ahead. How can I 0:34:53.890 --> 0:34:54.330 help you? 0:34:54.930 --> 0:34:58.969 My question is, um, I am just selling a house. Um, 0:34:59.210 --> 0:35:02.250 and I've been wanting to open a coin shop. I'm 0:35:02.250 --> 0:35:05.610 in the numismatics, um, gold and silver and some of 0:35:05.610 --> 0:35:10.319 the other precious metals. Um, but what's going on is, um, 0:35:10.600 --> 0:35:14.720 my house is in closing. Um, it's supposed to probably be, 0:35:14.760 --> 0:35:17.440 I would say within the next couple of weeks. Um, 0:35:17.480 --> 0:35:20.239 I'm working with the, she's a real estate agent, but 0:35:20.239 --> 0:35:23.399 she's buying the house herself, so there's no commission on 0:35:23.400 --> 0:35:27.480 her part. Um, what do I need to do to, 0:35:27.760 --> 0:35:30.600 you know, put that money toward this business on opening, 0:35:30.600 --> 0:35:33.719 I got a little bit of a business plan. Um, 0:35:33.920 --> 0:35:37.239 I've done some research in marketing and everything. Now, this 0:35:37.239 --> 0:35:41.080 area I'm at in Oklahoma is the next, um, biggest 0:35:41.080 --> 0:35:44.000 town over is Fort Smith, Arkansas, which is approximately 30 0:35:44.000 --> 0:35:48.719 miles away. So I've researched the geographical area, you know, um, 0:35:48.800 --> 0:35:53.840 population here is about 10,000. Um Fort Smith is around 100,000. 0:35:54.040 --> 0:35:56.040 So what would be your take on that. 0:35:56.280 --> 0:36:00.520 Yeah. A couple of questions for you. First of all, congratulations, uh, 0:36:00.520 --> 0:36:03.600 on this idea. You know, owning a business can be 0:36:03.600 --> 0:36:07.200 a wonderful opportunity. Um, but you want to go into 0:36:07.200 --> 0:36:09.270 it with your eyes wide open. So I'm glad you're 0:36:09.270 --> 0:36:11.870 asking a lot of questions. I'm glad you have put 0:36:11.870 --> 0:36:15.030 a business plan together. That's key. Uh, first would be, 0:36:15.110 --> 0:36:18.990 is this going to replace your full time income, Billy, 0:36:18.989 --> 0:36:21.790 or will you continue working while you build the business? 0:36:22.630 --> 0:36:26.509 No, no, I'll continue working full time. Um, at my 0:36:26.510 --> 0:36:31.069 job right now, um, I work it's, uh, it's a 0:36:31.070 --> 0:36:34.549 transportation in, um, I've been there for about eight years, 0:36:34.550 --> 0:36:36.910 so I got a pretty good retirement. Retirement? It's a 0:36:36.910 --> 0:36:40.390 403 B um, they match it up to 10%, which 0:36:40.390 --> 0:36:44.630 is really good. Um, so yeah, I'll be here. Um, 0:36:44.670 --> 0:36:47.830 at least, uh, you know, working that part time also. 0:36:48.270 --> 0:36:51.430 Great. Yeah, I love that. That's, that's really good. And 0:36:51.430 --> 0:36:55.630 how much do you expect the shop to need before 0:36:55.630 --> 0:36:58.029 it becomes cash flow positive? I mean, what is your 0:36:58.030 --> 0:36:59.190 business plan say? 0:37:00.590 --> 0:37:04.109 Well, right now, um, the ratio is probably I'm going 0:37:04.150 --> 0:37:08.080 to have to put, um, I would say 100 to 0:37:08.080 --> 0:37:10.750 120,000 in it. Um, because I'm going to, you know, 0:37:10.790 --> 0:37:12.390 from the ground up, it's going to be brick and 0:37:12.390 --> 0:37:15.950 mortar store. And that brings another point. You know, where 0:37:16.190 --> 0:37:18.710 I've talked to some people about the negative side, you know, 0:37:18.750 --> 0:37:21.509 they said there, um, there's a lot more businesses and 0:37:21.510 --> 0:37:25.790 stuff leaning toward the internet, you know, um, buying coins, 0:37:25.790 --> 0:37:31.550 selling coins and stuff like on eBay, Amazon, um, whatnot. So, um, 0:37:31.590 --> 0:37:33.390 that's kind of what I'm looking at right now. So 0:37:33.390 --> 0:37:36.230 if I sell this house for what I'm selling it, 0:37:36.230 --> 0:37:38.430 I'm going to probably need a little bit of a, 0:37:38.630 --> 0:37:41.109 I would say a business loan. I wouldn't think a 0:37:41.110 --> 0:37:44.790 whole lot. I would assume maybe 30, 35,000. 0:37:45.150 --> 0:37:49.390 Yeah. Got it. Okay. That's really helpful. Um, and I'm, 0:37:49.469 --> 0:37:53.109 that's encouraging about the opportunity because you're reducing a lot 0:37:53.110 --> 0:37:56.230 of the startup risk here, uh, because you're keeping your 0:37:56.230 --> 0:37:58.790 full time job. So you're not relying on the coin 0:37:58.790 --> 0:38:01.549 shop to feed your family on day one. Uh, and 0:38:01.550 --> 0:38:03.629 that's a huge advantage. And so I think the key 0:38:03.630 --> 0:38:06.620 is to keep contributing to that 403 B Be especially 0:38:06.620 --> 0:38:09.420 with that 10% match. Don't give up that free retirement 0:38:09.420 --> 0:38:12.900 money to fund the business. Um, be careful with the 0:38:12.900 --> 0:38:15.739 business loan. I would say only borrow truly what you need. 0:38:15.780 --> 0:38:18.460 Debt can help a business grow, but it can create 0:38:18.460 --> 0:38:21.419 pressure if sales take longer than expected. I would say 0:38:21.420 --> 0:38:24.460 don't ignore the internet. You know, these people that are discouraging. 0:38:24.460 --> 0:38:27.100 You do have a point that many coins are bought 0:38:27.100 --> 0:38:29.660 and sold online today. And so rather than viewing that 0:38:29.660 --> 0:38:32.580 as competition, I'd make it a part of your business model. 0:38:32.580 --> 0:38:34.660 If you're not already, you could use the storefront to 0:38:34.700 --> 0:38:39.339 build relationships and trust, but expand your business online. I 0:38:39.340 --> 0:38:41.820 would say also, you know, with any business, but certainly 0:38:41.820 --> 0:38:45.460 with a coin shop, it's important to differentiate yourself because 0:38:45.500 --> 0:38:50.379 a successful coin shop wins on expertise and trust and 0:38:50.380 --> 0:38:53.980 appraisals and estate collections and, you know, maybe Boolean if 0:38:53.980 --> 0:38:57.500 you're going to go there, but certainly relationships, not just 0:38:57.500 --> 0:39:00.460 selling coins from a display case. Um, and then I 0:39:00.460 --> 0:39:03.339 would say, you know, it's important to preserve some liquidity 0:39:03.340 --> 0:39:06.170 as well. Don't put every dollar from the home sale 0:39:06.450 --> 0:39:10.930 into inventory. You know that cash gives you flexibility when, uh, 0:39:10.930 --> 0:39:15.370 when opportunities arise. So, you know, I would always start 0:39:15.370 --> 0:39:18.450 with the question, what's going to make me different? You know, when, 0:39:18.489 --> 0:39:21.969 what's going to make someone drive past another coin shop 0:39:21.969 --> 0:39:25.850 or buy from you instead of eBay? What is your 0:39:25.850 --> 0:39:30.090 unique value proposition? Your answer, you know, to that question 0:39:30.090 --> 0:39:33.130 is really a key question that every small business owner 0:39:33.290 --> 0:39:35.410 has to make. Does that make does that make sense? 0:39:36.450 --> 0:39:39.370 It sure does. Yes. You're on point. 0:39:39.410 --> 0:39:43.250 Yeah. So, uh, you know, I'd encourage you with Proverbs 215, 0:39:43.290 --> 0:39:45.810 the plans of the diligent lead surely to abundance. But 0:39:45.810 --> 0:39:48.609 everyone who is hasty comes only to poverty. And so 0:39:48.610 --> 0:39:51.330 I think the big idea here is thoughtful planning and 0:39:51.330 --> 0:39:55.530 adequate capital. And keeping your stable income while that business 0:39:55.530 --> 0:39:57.810 grows is going to give you a much better chance 0:39:57.810 --> 0:40:01.489 of long term success. Um, and obviously you're in a 0:40:01.489 --> 0:40:04.400 small town, but whoever you can learn from, whether that's 0:40:04.400 --> 0:40:07.560 in person or, you know, a virtual mentor of somebody 0:40:07.560 --> 0:40:09.960 who's been down this road before, you just, you know, 0:40:10.000 --> 0:40:13.239 do your due diligence. And, um, but, but I, I 0:40:13.400 --> 0:40:16.919 don't disagree with the direction you're headed here. And, um, 0:40:16.920 --> 0:40:18.919 I would just say, make sure you keep, keep some 0:40:18.920 --> 0:40:22.200 working capital and don't, don't get to, uh, to lean 0:40:22.239 --> 0:40:24.760 on that, uh, liquidity, if that makes sense. 0:40:25.560 --> 0:40:28.600 Yes, sir. It sure does. Thank you for all your input. 0:40:28.920 --> 0:40:33.359 Absolutely. God bless you, Billy. Congrats on becoming a numismatist. Yeah, 0:40:33.400 --> 0:40:38.719 I was I struggle with that. Numismatic coins is a numismatist, 0:40:38.719 --> 0:40:41.320 I believe is how you say it. Hey, thanks for 0:40:41.320 --> 0:40:44.320 being on the program today. Uh, call anytime. Well, folks, 0:40:44.400 --> 0:40:46.360 we're about out of time today. What a treat to 0:40:46.360 --> 0:40:48.160 have you along with us. Here's our goal, and our 0:40:48.160 --> 0:40:49.960 heart on this program is that you would see God 0:40:49.960 --> 0:40:53.080 as your ultimate treasure. You know what the rich fool 0:40:53.120 --> 0:40:56.520 got wrong in God's Word in Luke 12 is he 0:40:56.520 --> 0:40:59.080 thought it was all his own doing and he was 0:40:59.080 --> 0:41:02.520 not rich toward God. Uh, when his life was demanded 0:41:02.520 --> 0:41:05.239 of him. That was what, uh, what was said in 0:41:05.239 --> 0:41:07.239 God's word. He was not rich toward God. What does 0:41:07.239 --> 0:41:10.080 that mean? Well, I think living rich toward God means 0:41:10.080 --> 0:41:15.160 seeing God as the riches above everything else, and then 0:41:15.160 --> 0:41:17.319 it puts everything in its proper place. I think the 0:41:17.320 --> 0:41:19.719 other issue that the rich fool had is he saw 0:41:19.719 --> 0:41:23.080 it all as his. And from his own making I 0:41:23.080 --> 0:41:27.160 think he used I and my like nine times in 0:41:27.200 --> 0:41:30.799 two verses. Look what I did with my hands. Look 0:41:30.800 --> 0:41:34.520 what I've created. No, it all comes from God. It's 0:41:34.520 --> 0:41:38.480 from his hand. The I is. I am a steward, 0:41:38.520 --> 0:41:41.160 a manager of God's resources. That's our hope and prayer 0:41:41.160 --> 0:41:43.160 for you is that you would see yourself in that 0:41:43.160 --> 0:41:46.680 role each day. It's a high calling. It's a big deal, 0:41:46.680 --> 0:41:49.359 and money is something we should enjoy. It shouldn't be 0:41:49.360 --> 0:41:52.480 a source of frustration. If we handle it properly and 0:41:52.480 --> 0:41:54.759 we live within our means and we avoid debt, and 0:41:54.760 --> 0:41:57.080 we give generously and we set long term goals and 0:41:57.080 --> 0:42:00.200 we have some liquidity or some margin, we understand God 0:42:00.200 --> 0:42:02.790 owns it all. Wow, what a gift to be able 0:42:02.790 --> 0:42:05.350 to use money to serve and love others. To bring 0:42:05.350 --> 0:42:09.510 about God's redemptive purposes, to grow and create businesses and 0:42:09.510 --> 0:42:12.350 employ people that get paid and then give to the 0:42:12.350 --> 0:42:15.790 local church and fund missions around the world. It's a 0:42:15.790 --> 0:42:21.190 virtuous cycle of God's providence and provision and ultimately of 0:42:21.190 --> 0:42:24.989 wealth creation, but it all comes from him. Well, folks, 0:42:24.989 --> 0:42:26.830 it's been a joy to be along with you today. 0:42:26.830 --> 0:42:30.669 Thanks for inviting us into your story. What a joy 0:42:30.670 --> 0:42:33.310 it is to encourage you with God's Word as you 0:42:33.350 --> 0:42:36.510 seek to be that wise and faithful steward. Our goal 0:42:36.510 --> 0:42:39.910 that you'd see God as your ultimate treasure. Let me 0:42:39.950 --> 0:42:41.790 say thanks to my team today. I couldn't do it 0:42:41.790 --> 0:42:45.150 without him. Amy. Dan. To hear a Taylor and Omar 0:42:45.190 --> 0:42:47.990 faith in Finance Live is a partnership between Moody Radio 0:42:47.989 --> 0:42:50.989 and Faith VI. Have a wonderful day and come back 0:42:50.989 --> 0:42:53.590 and join us next time for another edition of Faith 0:42:53.590 --> 0:42:54.670 and Finance Live.