1 00:00:08,480 --> 00:00:11,559 S1: Servant leadership isn't a soft skill and may be one 2 00:00:11,560 --> 00:00:15,440 S1: of the most important indicators of long term business health. Hi, 3 00:00:15,480 --> 00:00:19,640 S1: I'm Rob West. When investors evaluate companies, they often focus 4 00:00:19,640 --> 00:00:23,600 S1: on numbers. But behind every enduring business is a leadership 5 00:00:23,600 --> 00:00:28,600 S1: team shaping culture, risk and resilience. Dolores Bamford joins us 6 00:00:28,600 --> 00:00:32,280 S1: today to explore why the character of a company's leaders 7 00:00:32,280 --> 00:00:35,360 S1: can matter as much as its financial performance. And then 8 00:00:35,360 --> 00:00:39,479 S1: it's on to your phone calls at 800 525 7000. 9 00:00:39,680 --> 00:00:43,040 S1: This is faith and finance. Live. Biblical wisdom for your 10 00:00:43,040 --> 00:00:51,280 S1: financial decisions. Well, Dolores Bamford serves as co-chief investment officer 11 00:00:51,280 --> 00:00:55,480 S1: and senior portfolio manager at Eventide Asset Management, a valued 12 00:00:55,480 --> 00:00:58,280 S1: underwriter of this program. Dolores, it is a treat to 13 00:00:58,280 --> 00:00:59,480 S1: have you back with us today. 14 00:00:59,830 --> 00:01:01,310 S2: Hi, Rob. Thanks for having me. 15 00:01:01,550 --> 00:01:06,270 S1: Of course. And, Dolores, you've spent decades in investment management, 16 00:01:06,270 --> 00:01:09,229 S1: including time at many of the major firms, and now 17 00:01:09,230 --> 00:01:13,550 S1: serve in a faith aligned investing role at Eventide. I'd 18 00:01:13,550 --> 00:01:16,390 S1: love for you to start today by just sharing how 19 00:01:16,390 --> 00:01:20,710 S1: your professional journey has shaped the way you approach leadership 20 00:01:20,709 --> 00:01:21,910 S1: and investing today. 21 00:01:22,350 --> 00:01:26,630 S2: I'd love to. I have 30 years of experience working 22 00:01:26,630 --> 00:01:31,509 S2: in investment management, including starting my career at fidelity, working 23 00:01:31,510 --> 00:01:35,870 S2: at Putnam, Goldman Sachs, and now at Eventide Asset Management. 24 00:01:35,990 --> 00:01:41,230 S2: I spent over two decades focusing on managing directly portfolios 25 00:01:41,230 --> 00:01:44,509 S2: and being a portfolio manager. And what I want to 26 00:01:44,550 --> 00:01:47,630 S2: focus and what I want to highlight with you is 27 00:01:47,630 --> 00:01:54,310 S2: that I've been increasingly focused on quality, resilience, the long term, 28 00:01:54,310 --> 00:01:58,900 S2: and investing for human flourishing. And I think the most 29 00:01:58,900 --> 00:02:04,780 S2: important aspect of my career is focusing on leadership and 30 00:02:04,780 --> 00:02:09,740 S2: leadership quality as essential for a lasting business success. 31 00:02:10,139 --> 00:02:12,299 S1: Yeah, it's a key part of value creation, and we're 32 00:02:12,300 --> 00:02:15,220 S1: going to unpack that today. I want to take just 33 00:02:15,220 --> 00:02:17,820 S1: a minute more, though, and talk about some of your training, 34 00:02:17,820 --> 00:02:22,580 S1: because you actually have formal theological training alongside your long 35 00:02:22,620 --> 00:02:25,900 S1: term finance career. And I'd love for you just to share, 36 00:02:25,900 --> 00:02:29,820 S1: how does that blend of deep investment experience and theological 37 00:02:29,820 --> 00:02:32,859 S1: study shaped the way you approach your work there at Eventide? 38 00:02:33,220 --> 00:02:36,380 S2: That's right. After Goldman Sachs, I went back to seminary, 39 00:02:36,820 --> 00:02:40,340 S2: studied and got a master's in theology church history. Also 40 00:02:40,380 --> 00:02:43,900 S2: working on a doctorate for ethical leadership. And I thought 41 00:02:43,900 --> 00:02:47,820 S2: that it was a wonderful addition to my career in 42 00:02:47,860 --> 00:02:54,340 S2: focusing on the biblical grounding of integrity and humility, stewardship 43 00:02:54,340 --> 00:02:57,810 S2: and servant leadership as part of a successful business and 44 00:02:57,810 --> 00:03:01,610 S2: successful investing. And I believe that it gave me a 45 00:03:01,610 --> 00:03:07,530 S2: clearer lens to evaluate faith and values and purpose in business. 46 00:03:08,290 --> 00:03:10,850 S2: And I really came out of seminary really focused in 47 00:03:10,889 --> 00:03:15,130 S2: having conviction that faith in finance really belong together and 48 00:03:15,130 --> 00:03:17,370 S2: enabling to create a successful business. 49 00:03:17,650 --> 00:03:18,530 S3: I love that. 50 00:03:18,889 --> 00:03:20,970 S1: You made a comment just a moment ago, that you 51 00:03:20,970 --> 00:03:25,370 S1: have a growing conviction that leadership quality is essential to 52 00:03:25,410 --> 00:03:29,090 S1: lasting business success. I'd love for you to unpack that 53 00:03:29,090 --> 00:03:32,369 S1: a bit more. Why does leadership carry such weight? 54 00:03:32,610 --> 00:03:36,490 S2: Leadership carries so much weight because it guides and shapes 55 00:03:36,810 --> 00:03:41,570 S2: a company's culture, its product development, as you said, its financials. 56 00:03:42,010 --> 00:03:46,570 S2: It's the people they hire and the growth of it 57 00:03:46,570 --> 00:03:51,490 S2: longer term. It's the way that management behaves and how 58 00:03:51,490 --> 00:03:56,120 S2: it directly affects everything about a business its risk, its resilience, 59 00:03:56,120 --> 00:04:01,280 S2: its growth, its future. Strong products really can't compensate for 60 00:04:01,320 --> 00:04:06,160 S2: poor leadership. And over time, the outcomes that are driven 61 00:04:06,160 --> 00:04:11,040 S2: by people, not numbers, not just numbers, really drive the 62 00:04:11,040 --> 00:04:13,200 S2: performance of a company longer term. 63 00:04:13,560 --> 00:04:13,920 S3: Mhm. 64 00:04:14,320 --> 00:04:18,160 S1: Dolores, do you believe this element of evaluating a company 65 00:04:18,200 --> 00:04:21,800 S1: has been overlooked by many when they're evaluating companies in 66 00:04:21,800 --> 00:04:22,479 S1: your seat? 67 00:04:22,760 --> 00:04:26,120 S2: I do. I believe that this is an important attribute 68 00:04:26,120 --> 00:04:29,520 S2: that's being overlooked by other investment managers. 69 00:04:30,440 --> 00:04:32,640 S1: Yeah. Well, I love that you all are going in. 70 00:04:32,640 --> 00:04:35,360 S1: I know you have a process called business 360 where 71 00:04:35,360 --> 00:04:38,839 S1: you look at the entire company, not only its leadership, 72 00:04:38,839 --> 00:04:42,920 S1: but how it cares for and thinks about its impact 73 00:04:42,920 --> 00:04:47,760 S1: on its all of its stakeholders, from suppliers to communities, 74 00:04:47,760 --> 00:04:52,000 S1: of course, customers and employees. And we'll continue to unpack this. 75 00:04:52,040 --> 00:04:54,510 S1: In fact, we'll dig a little bit deeper into some 76 00:04:54,510 --> 00:04:59,869 S1: of these leadership characteristics of strong management teams and what 77 00:04:59,870 --> 00:05:02,990 S1: that actually looks like in day to day practice and 78 00:05:03,150 --> 00:05:07,110 S1: how that comes into the investment analysis done by Dolores 79 00:05:07,110 --> 00:05:10,469 S1: and her team. We're joined today by Dolores Bamford with 80 00:05:10,510 --> 00:05:14,510 S1: Eventide Asset Management, a valued underwriter of this program, and 81 00:05:14,510 --> 00:05:17,430 S1: will continue to talk about investing in the people behind 82 00:05:17,430 --> 00:05:36,109 S1: the profits. Right after this. Stay with us. Great to 83 00:05:36,110 --> 00:05:38,589 S1: have you with us today on Faith and Finance Live. 84 00:05:38,750 --> 00:05:42,190 S1: You know, investing isn't just about returns. It's about the 85 00:05:42,190 --> 00:05:47,030 S1: kind of world our capital helps to build. And every day, 86 00:05:47,070 --> 00:05:51,070 S1: Eventide Asset management and underwriter of this program is evaluating 87 00:05:51,070 --> 00:05:56,779 S1: companies not only to provide returns, but to invest in 88 00:05:56,779 --> 00:05:59,380 S1: companies that make the world rejoice. Because if we think 89 00:05:59,380 --> 00:06:03,100 S1: about it, our investment is capital being supplied to businesses 90 00:06:03,100 --> 00:06:06,860 S1: that should be creating goods and services that are good 91 00:06:06,860 --> 00:06:10,700 S1: and serve people. Part of that analysis is looking at 92 00:06:10,700 --> 00:06:14,380 S1: the actual companies and their leadership, and we're joined today 93 00:06:14,380 --> 00:06:19,300 S1: by Dolores Bamford. She's co CIO and senior portfolio manager 94 00:06:19,300 --> 00:06:23,060 S1: at Eventide Asset Management and underwriter of this program. Dolores, 95 00:06:23,060 --> 00:06:26,779 S1: before the break, we were talking about the role of leadership. 96 00:06:26,820 --> 00:06:31,300 S1: And you've used terms like integrity, humility and servant leadership 97 00:06:31,300 --> 00:06:34,300 S1: to describe strong management teams. But I'd love for you 98 00:06:34,300 --> 00:06:37,620 S1: to describe what that looks like in day to day practice. 99 00:06:37,940 --> 00:06:39,659 S2: I'd love to. Rob. And I just wanted to tell 100 00:06:39,660 --> 00:06:43,020 S2: you how important servant leadership is that I've seen throughout 101 00:06:43,020 --> 00:06:47,340 S2: my career, as well as in my theological study. But 102 00:06:47,339 --> 00:06:53,570 S2: servant leadership really is about being passionate and committed to 103 00:06:53,610 --> 00:06:57,330 S2: the well-being and success of others. So we look for 104 00:06:57,330 --> 00:07:02,529 S2: leaders who generally care about their employees and encourage them 105 00:07:02,890 --> 00:07:05,570 S2: to perform their best, and those that really care about 106 00:07:05,570 --> 00:07:09,930 S2: their customers and wanting them to thrive and succeed in 107 00:07:09,930 --> 00:07:15,490 S2: the world. So leaders who are intentional about building a healthy, 108 00:07:15,490 --> 00:07:21,130 S2: positive culture. Managers who are have humility and values that 109 00:07:21,130 --> 00:07:25,250 S2: are paired with real excellence can be operational or financial, 110 00:07:25,250 --> 00:07:29,250 S2: as well as an expertise. They can use innovation and 111 00:07:29,250 --> 00:07:34,050 S2: technology not recklessly, but very responsibly and in a purpose 112 00:07:34,050 --> 00:07:38,890 S2: driven way to help others. And they have a long term, 113 00:07:38,890 --> 00:07:43,330 S2: mission driven mindset that can enable them to really focus 114 00:07:43,330 --> 00:07:46,850 S2: on long term enduring success as opposed to chasing short 115 00:07:46,890 --> 00:07:47,890 S2: term gains. 116 00:07:48,130 --> 00:07:51,440 S1: Yeah, that's really helpful. Dolores, before the break, we said 117 00:07:51,440 --> 00:07:56,320 S1: that this idea of focusing on quality leadership as companies 118 00:07:56,320 --> 00:08:01,200 S1: are evaluated is often overlooked. Why do you think that is? 119 00:08:01,200 --> 00:08:04,520 S1: Why is that rare and does that pose a risk? 120 00:08:05,040 --> 00:08:08,040 S2: It is rare and it can be a risk if 121 00:08:08,040 --> 00:08:11,800 S2: it's not pursued. I believe that the stock market or 122 00:08:11,800 --> 00:08:15,400 S2: the behavior of the market can cause a constant pressure 123 00:08:15,400 --> 00:08:19,600 S2: for managers to focus on short term profitability and have 124 00:08:19,640 --> 00:08:24,280 S2: sort of a transactional view of people and of their 125 00:08:24,280 --> 00:08:28,840 S2: business and value creation. And there are also cultural incentives 126 00:08:28,840 --> 00:08:34,360 S2: that often reward managers for selfishness, arrogance over humility and 127 00:08:34,360 --> 00:08:40,200 S2: selflessness and serving others well. And technology by itself can 128 00:08:40,200 --> 00:08:44,760 S2: amplify good or bad. But what's really important is how 129 00:08:44,920 --> 00:08:47,320 S2: leaders use it. Good and bad leaders use in those 130 00:08:47,320 --> 00:08:49,910 S2: decisions around technology that make a difference? 131 00:08:50,230 --> 00:08:50,670 S1: Yeah. 132 00:08:50,870 --> 00:08:55,910 S2: So the risk is that poor leaders can tend to 133 00:08:56,150 --> 00:09:00,390 S2: focus on short term gain and practices that can ultimately 134 00:09:00,390 --> 00:09:05,429 S2: harm people. And for good leaders, good leadership can produce 135 00:09:05,429 --> 00:09:10,750 S2: a stable, healthy, adaptable and growing business for the long term. 136 00:09:11,510 --> 00:09:14,949 S1: So let's talk about what this looks like in practice. 137 00:09:14,950 --> 00:09:18,270 S1: How does the team that you and others lead there 138 00:09:18,270 --> 00:09:22,350 S1: at Eventide evaluate management teams when you're deciding whether a 139 00:09:22,350 --> 00:09:24,110 S1: company belongs in your portfolio? 140 00:09:24,630 --> 00:09:28,750 S2: Our approach is really a blend of qualitative insight as 141 00:09:28,750 --> 00:09:33,230 S2: well as more quantitative analysis. We spent time with the 142 00:09:33,230 --> 00:09:37,710 S2: leadership of companies in interviews and getting to know them. 143 00:09:38,390 --> 00:09:43,309 S2: We try to understand their purpose, their priorities, their character, 144 00:09:43,510 --> 00:09:45,990 S2: how much they know about the business and the industry. 145 00:09:46,429 --> 00:09:50,540 S2: We assess the culture and the values and the credibility 146 00:09:50,740 --> 00:09:54,059 S2: of the organization and the business that they run. And 147 00:09:54,059 --> 00:09:58,260 S2: we also get confirming insights from others, either internally or externally, 148 00:09:58,260 --> 00:10:02,020 S2: to confirm the quality of the leadership in the management team. 149 00:10:02,380 --> 00:10:06,699 S1: So clearly, this is more than simply analyzing the numbers. Dolores, 150 00:10:06,740 --> 00:10:09,980 S1: why is it important to evaluate both what a company 151 00:10:09,980 --> 00:10:14,620 S1: produces and how it operates when assessing its leadership? 152 00:10:14,980 --> 00:10:20,260 S2: It's really important to first understand the management's purpose and strategy, 153 00:10:20,500 --> 00:10:24,340 S2: because that will also influence the product and practices and 154 00:10:24,380 --> 00:10:29,100 S2: eventually the products and practices that actually impact society or 155 00:10:29,100 --> 00:10:33,220 S2: their customers. That's really where the impact is on the world. 156 00:10:33,220 --> 00:10:37,860 S2: And so it's really important to also understand the products 157 00:10:37,860 --> 00:10:41,620 S2: and to see how they're adding value to others and 158 00:10:41,620 --> 00:10:45,850 S2: the practices in terms of how they're being delivered. And 159 00:10:46,130 --> 00:10:50,970 S2: when there's a misalignment with management's purpose and the products 160 00:10:50,970 --> 00:10:55,050 S2: and practices, it can really have a negative effect on society. 161 00:10:55,290 --> 00:10:58,930 S2: And so we're really focused on those that can add 162 00:10:58,929 --> 00:11:03,010 S2: value to their customers or to the world and well-being 163 00:11:03,010 --> 00:11:07,290 S2: and being consistent with their stated purpose and their behavior 164 00:11:07,290 --> 00:11:11,170 S2: and how that impacts how the company is pursuing those 165 00:11:11,170 --> 00:11:12,450 S2: products and practices. 166 00:11:12,770 --> 00:11:16,130 S1: Yeah. That's fascinating. We're talking today with Dolores Bamford with 167 00:11:16,170 --> 00:11:19,050 S1: Eventide Asset Management. If you want to learn more, just 168 00:11:19,050 --> 00:11:23,690 S1: head to Eventide investments.com. Dolores, I want to unpack this 169 00:11:23,690 --> 00:11:26,890 S1: just a bit more. What are you looking for in 170 00:11:26,929 --> 00:11:29,810 S1: terms of signs of a good leadership team? And then 171 00:11:29,809 --> 00:11:32,010 S1: maybe on the flip side, what are some of those 172 00:11:32,010 --> 00:11:35,130 S1: signs of a poor leadership team that you'd stay away from? 173 00:11:35,530 --> 00:11:39,410 S2: There are many commonalities in good leaders that we see, 174 00:11:39,730 --> 00:11:41,770 S2: and particularly that I've seen over the course of my 175 00:11:41,770 --> 00:11:46,760 S2: 30 years. And they're consistent with, you know, Christ's teachings. 176 00:11:47,200 --> 00:11:50,760 S2: And it very much involves servant leadership, as we said before. 177 00:11:51,280 --> 00:11:55,760 S2: And that can include a sense of humility, integrity, a 178 00:11:55,760 --> 00:12:00,839 S2: sense of, of transparency and the willingness to recognize that 179 00:12:00,840 --> 00:12:04,880 S2: you make mistakes and willingness to learn. It also reflects 180 00:12:04,920 --> 00:12:07,800 S2: a discipline and an excellence about the way they approach 181 00:12:07,800 --> 00:12:13,800 S2: their business. Consistent communication as well and the focus on 182 00:12:13,800 --> 00:12:18,440 S2: serving others well. Poor leaders we've seen are marked with 183 00:12:18,880 --> 00:12:25,800 S2: greed and arrogance. This self-orientation and this excessive focus on 184 00:12:25,800 --> 00:12:30,280 S2: near-term profits. And we can see that also in a 185 00:12:30,280 --> 00:12:34,200 S2: history of poor treatment of employees or customers, and eventually 186 00:12:34,200 --> 00:12:36,800 S2: develop products and practices that harm people. 187 00:12:37,040 --> 00:12:40,360 S1: Yeah. Well, it's powerful work and I know it's making 188 00:12:40,360 --> 00:12:42,870 S1: a difference. I'd love for you to finish today by 189 00:12:42,870 --> 00:12:46,990 S1: just sharing what you personally find most rewarding and fulfilling 190 00:12:46,990 --> 00:12:51,030 S1: about partnering with companies led by teams like you just described. 191 00:12:51,470 --> 00:12:55,830 S2: It's so fulfilling and inspiring to watch companies that are 192 00:12:55,830 --> 00:13:01,950 S2: succeeding by serving others well. Seeing companies change for the better, 193 00:13:02,350 --> 00:13:08,150 S2: for customers thriving in an environment because of the businesses 194 00:13:08,150 --> 00:13:11,710 S2: in their help, seeing the excellence through good times and bad, 195 00:13:11,710 --> 00:13:16,470 S2: and seeing that resilience and ultimately seeing great leaders have 196 00:13:16,510 --> 00:13:20,190 S2: great alignment between excellence and purpose and doing the right thing. 197 00:13:20,429 --> 00:13:22,870 S1: Well, that is powerful. Well, we're so honored to be 198 00:13:22,870 --> 00:13:25,830 S1: partnered with you to be able to share this good work. 199 00:13:25,830 --> 00:13:27,750 S1: And I know you and the team wake up every 200 00:13:27,790 --> 00:13:31,670 S1: day thinking about investing in companies that make the world rejoice. 201 00:13:31,830 --> 00:13:34,910 S1: And that's, uh, that's worth giving your life to, isn't it? 202 00:13:34,910 --> 00:13:37,070 S2: Absolutely. Thank you so much. 203 00:13:37,270 --> 00:13:41,500 S1: Absolutely. Our guest today has been Dolores Bamford with Eventide 204 00:13:41,540 --> 00:13:45,340 S1: Asset Management, a valued underwriter of this program. Remember folks, 205 00:13:45,420 --> 00:13:49,940 S1: great companies start with great leaders, and servant leadership helps 206 00:13:49,940 --> 00:13:52,860 S1: create lasting value. Hey, if you want to learn more 207 00:13:52,860 --> 00:13:56,699 S1: about investing in companies that promote the global common good, 208 00:13:56,740 --> 00:14:03,500 S1: you can do that at Eventide investments.com. That's Eventide investments.com. 209 00:14:03,820 --> 00:14:06,500 S1: All right. Your phone calls are next. The number 800 210 00:14:06,500 --> 00:14:13,059 S1: 525 7000. That's 800 525 7000. Or if you'd prefer 211 00:14:13,059 --> 00:14:17,380 S1: to email your questions, send it to us at ask robert.com. 212 00:14:17,420 --> 00:14:20,580 S1: I'm Rob Westin, you're listening to Faith and Finance Live 213 00:14:20,820 --> 00:14:24,620 S1: Biblical Wisdom for your financial decisions. We'll be right back 214 00:14:24,620 --> 00:14:25,580 S1: after this break. 215 00:14:35,140 --> 00:14:38,380 S4: The opinions offered during this program represent the personal or 216 00:14:38,380 --> 00:14:42,810 S4: professional opinions of the participants given for informational purposes only. 217 00:14:43,130 --> 00:14:46,570 S4: Any information provided is not intended to replace advice from 218 00:14:46,570 --> 00:14:50,810 S4: a financial, medical, legal or other professional who understands your 219 00:14:50,810 --> 00:14:52,290 S4: specific situation. 220 00:14:58,050 --> 00:14:59,650 S1: Great to have you with us today on Faith and 221 00:14:59,650 --> 00:15:02,090 S1: Finance Live. I'm Rob Westwell. In just a moment, we're 222 00:15:02,090 --> 00:15:04,610 S1: going to begin taking your calls and questions. So now 223 00:15:04,610 --> 00:15:07,250 S1: is the time to call. We'd love to hear from you. 224 00:15:07,250 --> 00:15:13,770 S1: 800 525 7000 again, that number 800 525 7000. Our 225 00:15:13,770 --> 00:15:15,410 S1: team is standing by and we will get to as 226 00:15:15,410 --> 00:15:18,610 S1: many calls as we can today. You know, just another 227 00:15:18,610 --> 00:15:21,730 S1: word on where we started today with Dolores Bamford. So 228 00:15:21,730 --> 00:15:26,170 S1: thankful for the long standing relationship we have with Eventide 229 00:15:26,250 --> 00:15:30,290 S1: Asset Management investments that make the world rejoice. You know, 230 00:15:30,690 --> 00:15:33,530 S1: what we talked about today, I think is so key 231 00:15:33,530 --> 00:15:38,880 S1: to our understanding of the opportunity before us as investors. 232 00:15:38,920 --> 00:15:42,200 S1: You know, keep in mind, for many believers especially, I 233 00:15:42,200 --> 00:15:46,960 S1: would say investing feels like a purely financial task, something 234 00:15:46,960 --> 00:15:50,800 S1: that belongs in spreadsheets rather than in scripture. But stock 235 00:15:50,800 --> 00:15:54,960 S1: portfolios and, and mutual funds, this is not the way 236 00:15:55,000 --> 00:16:00,160 S1: God intended it. Perhaps wise and purposeful investing should in 237 00:16:00,160 --> 00:16:03,800 S1: fact serve others and reflect God's kingdom. You know, from 238 00:16:03,800 --> 00:16:07,720 S1: the beginning, God designed his people to participate in cultivating 239 00:16:07,720 --> 00:16:11,320 S1: his world in Genesis one and two. We're called to 240 00:16:11,360 --> 00:16:14,120 S1: be fruitful, to multiply, to steward creation. And I would 241 00:16:14,120 --> 00:16:17,600 S1: say investing at its best is one of the modern 242 00:16:17,600 --> 00:16:21,000 S1: avenues by which that happens. It's the process of channeling 243 00:16:21,000 --> 00:16:25,480 S1: resources into productive ventures that can bless and serve others. 244 00:16:25,640 --> 00:16:28,680 S1: You see, as we look at God's design for economics 245 00:16:28,680 --> 00:16:34,040 S1: and wealth creation, remember business is what ultimately funds the 246 00:16:34,320 --> 00:16:38,870 S1: revenues that ultimately become giving to your local church and 247 00:16:38,910 --> 00:16:41,870 S1: to your local hospital and tax revenues. It's all a 248 00:16:41,870 --> 00:16:45,030 S1: function of business. And so when we invest in a company, 249 00:16:45,030 --> 00:16:48,430 S1: even on the secondary market through a stock exchange, we're 250 00:16:48,430 --> 00:16:51,790 S1: investing as a part owner of a real company that 251 00:16:51,790 --> 00:16:54,830 S1: has sales and earnings, that should be providing goods and 252 00:16:54,830 --> 00:16:59,070 S1: services that bless and serve people, mankind, and promote human flourishing, 253 00:16:59,070 --> 00:17:02,630 S1: and take the latent potential in God's creation and put 254 00:17:02,630 --> 00:17:07,189 S1: it to productive purposes for improving it and ordering it. 255 00:17:07,190 --> 00:17:10,590 S1: That's just part of God's design. And so it's not gambling. 256 00:17:10,790 --> 00:17:13,670 S1: It's really taking and putting to work what God has 257 00:17:13,670 --> 00:17:16,870 S1: placed in our hands. He's still the owner, we're the manager. 258 00:17:16,869 --> 00:17:20,189 S1: But the extent to which we can deploy that capital 259 00:17:20,190 --> 00:17:25,470 S1: into companies that are God honoring, that are promoting human flourishing, 260 00:17:25,470 --> 00:17:28,949 S1: that are solving real problems, certainly not harming people in 261 00:17:28,950 --> 00:17:32,150 S1: any way. We should avoid those companies, but those companies 262 00:17:32,150 --> 00:17:37,260 S1: where we embrace them because they're loving their neighbors, their customers, 263 00:17:37,260 --> 00:17:40,619 S1: their shareholders, their stakeholders, even the community and the environment 264 00:17:40,619 --> 00:17:43,300 S1: in which they are located. Those are the kinds of 265 00:17:43,300 --> 00:17:48,020 S1: companies we want to be invested in. And increasingly, you're 266 00:17:48,020 --> 00:17:50,660 S1: able to invest in a way that aligns with your 267 00:17:50,660 --> 00:17:54,060 S1: Christian values through faith based investing that did not exist 268 00:17:54,060 --> 00:17:57,020 S1: in the way that it does today. Even five years ago. 269 00:17:57,020 --> 00:18:00,379 S1: And so if you'd like to evaluate your portfolio through 270 00:18:00,380 --> 00:18:04,180 S1: the lens of your Christian values, perhaps you would reach 271 00:18:04,180 --> 00:18:08,379 S1: out to a certified Kingdom advisor who offers faith based investing. 272 00:18:08,380 --> 00:18:13,100 S1: And you can search for one specifically at find a.com, 273 00:18:13,100 --> 00:18:17,380 S1: that's find a k.com. There's also some wonderful faith based 274 00:18:17,380 --> 00:18:21,660 S1: investing asset managers like Eventide and others that you'll find 275 00:18:21,660 --> 00:18:26,700 S1: at our website, faith.com. Just click the show and you'd 276 00:18:26,740 --> 00:18:29,180 S1: be able to see those underwriters that we have some 277 00:18:29,180 --> 00:18:34,100 S1: amazing organizations creating world class investment offerings in a God 278 00:18:34,210 --> 00:18:36,570 S1: honoring way. This is really one of the most exciting 279 00:18:36,570 --> 00:18:41,170 S1: developments in in personal finance and investments, uh, as far 280 00:18:41,170 --> 00:18:45,170 S1: as I've ever seen, just because now we can invest 281 00:18:45,170 --> 00:18:47,169 S1: in a way that aligns with our values in a 282 00:18:47,170 --> 00:18:50,010 S1: way that we never have been able to before. And frankly, 283 00:18:50,010 --> 00:18:52,970 S1: it's really exciting. All right, let's, uh, turn the corner 284 00:18:52,970 --> 00:18:55,530 S1: and tackle whatever is on your mind today. Uh, the 285 00:18:55,530 --> 00:18:59,250 S1: number to call 800 525 7000. We'd love to hear 286 00:18:59,250 --> 00:19:02,530 S1: from you. Let's begin in Illinois and we'll start with Robin. 287 00:19:02,530 --> 00:19:03,050 S1: Go ahead. 288 00:19:03,930 --> 00:19:06,770 S5: Hi. Thank you for taking my call. And I just 289 00:19:06,770 --> 00:19:10,010 S5: had a question. I'm going to be 73 this year. 290 00:19:10,170 --> 00:19:14,810 S5: And the institution that holds my I am my IRA, uh, 291 00:19:14,810 --> 00:19:18,090 S5: for my RMD that I need to take out so 292 00:19:18,090 --> 00:19:21,209 S5: that they could send the check directly to me. I 293 00:19:21,250 --> 00:19:25,410 S5: give to various charitable organizations and, but everything I hear 294 00:19:25,410 --> 00:19:28,290 S5: on your program says that the checks should be sent 295 00:19:28,290 --> 00:19:29,370 S5: to the charity. 296 00:19:30,010 --> 00:19:35,119 S1: Yes. Yeah, it's exactly right. Because you are over 70.5. 297 00:19:35,480 --> 00:19:39,200 S1: You have the opportunity to do what's called a qualified 298 00:19:39,200 --> 00:19:43,360 S1: charitable distribution, which the only way for that to be 299 00:19:43,400 --> 00:19:48,200 S1: a qualified charitable distribution to satisfy your required minimum, but 300 00:19:48,200 --> 00:19:51,520 S1: not have it added to your taxable income is when 301 00:19:51,520 --> 00:19:55,080 S1: it doesn't come to you first, like an RMD normally would, 302 00:19:55,440 --> 00:19:59,080 S1: but it goes directly to the charity. So what you 303 00:19:59,080 --> 00:20:01,680 S1: would want to do is just call the brokerage firm 304 00:20:01,720 --> 00:20:05,080 S1: or the custodian of your account, whoever sends you your 305 00:20:05,080 --> 00:20:09,199 S1: statements and just say, I want to take my RMD 306 00:20:09,520 --> 00:20:13,080 S1: by way of a qualified charitable distribution, and I want 307 00:20:13,080 --> 00:20:17,200 S1: you to send the check directly to that ministry. And 308 00:20:17,200 --> 00:20:21,120 S1: when they do that and you get the appropriate documentation, 309 00:20:21,119 --> 00:20:24,320 S1: you'll just acknowledge that on your tax return that it's 310 00:20:24,320 --> 00:20:27,359 S1: not taxable because it did not come to you first. 311 00:20:27,359 --> 00:20:30,280 S1: It went straight to the charity. And again, as long 312 00:20:30,280 --> 00:20:34,190 S1: as you give enough to get above your required minimum, 313 00:20:34,190 --> 00:20:36,710 S1: or at least meet it. You will satisfy the required 314 00:20:36,710 --> 00:20:39,350 S1: minimum for the for the year and you will not 315 00:20:39,350 --> 00:20:42,270 S1: have anything added to your taxable income. And the QCD 316 00:20:42,310 --> 00:20:43,870 S1: is the only way to do that. 317 00:20:44,550 --> 00:20:47,949 S5: Yes, and that's what I understood. But when I called 318 00:20:47,950 --> 00:20:51,550 S5: my my IRA broker, he told me that they could 319 00:20:51,590 --> 00:20:53,750 S5: send the check directly to me. And I said, oh, 320 00:20:53,790 --> 00:20:57,830 S5: you can. And they said yes. And so that's why. 321 00:20:57,869 --> 00:21:00,429 S5: But I've heard you say numerous times, it has to 322 00:21:00,430 --> 00:21:03,310 S5: be sent directly to the charity. So that's what I 323 00:21:03,310 --> 00:21:06,310 S5: was confirming. So you just confirmed it that it does 324 00:21:06,310 --> 00:21:07,870 S5: need to go to the charity. 325 00:21:08,270 --> 00:21:13,030 S1: So yeah, that's exactly right. That is really a critical piece. Uh, 326 00:21:13,270 --> 00:21:18,310 S1: because you don't want that check made payable directly to you. 327 00:21:18,550 --> 00:21:21,990 S1: If that happens that way, it will not be considered 328 00:21:21,990 --> 00:21:26,030 S1: a qualified charitable distribution. So I would just say, respectfully, 329 00:21:26,390 --> 00:21:29,030 S1: I can't have that check made out to me and 330 00:21:29,030 --> 00:21:32,170 S1: then donate it in order to have it treated as 331 00:21:32,170 --> 00:21:35,209 S1: a qualified charitable distribution. So I want it made out 332 00:21:35,250 --> 00:21:37,650 S1: directly to the charity. And then you can provide the 333 00:21:37,650 --> 00:21:41,250 S1: appropriate information that the charity or your church will provide 334 00:21:41,250 --> 00:21:43,850 S1: you to give to your broker. So I'm glad you 335 00:21:43,850 --> 00:21:46,730 S1: checked on that. Robyn, you are exactly right. Thanks for 336 00:21:46,730 --> 00:21:49,570 S1: being on the program today. We're grateful to have you folks. 337 00:21:49,570 --> 00:21:51,010 S1: We're going to take a break. When we come back. 338 00:21:51,010 --> 00:21:53,330 S1: We've got a lot more questions, some really good ones. 339 00:21:53,330 --> 00:21:57,169 S1: If you have one call right now, 800 525 7000. 340 00:22:06,730 --> 00:22:08,370 S1: Great to have you with us today on Faith and 341 00:22:08,369 --> 00:22:11,649 S1: Finance Live. I'm Rob West. We're taking your calls and questions. 342 00:22:11,650 --> 00:22:14,090 S1: All the lines nearly full. So let's head right back 343 00:22:14,090 --> 00:22:17,209 S1: to the phones. Ohio's where Shane is located. Go ahead sir. 344 00:22:19,410 --> 00:22:21,730 S6: Hi, Rob. Thank you for your ministry, I appreciate that. 345 00:22:21,970 --> 00:22:22,450 S1: Sure. 346 00:22:22,850 --> 00:22:26,770 S6: Um, so my son, he is, uh, he works full 347 00:22:26,810 --> 00:22:30,280 S6: time in the ministry And he doesn't get paid very 348 00:22:30,280 --> 00:22:32,760 S6: much money and he is struggling to make ends meet 349 00:22:32,760 --> 00:22:38,000 S6: every month. Um, they're living pretty lean. And so he 350 00:22:38,000 --> 00:22:40,520 S6: had come to me and wanted to know if, if 351 00:22:40,520 --> 00:22:43,120 S6: it would be worth it if he pulled money out 352 00:22:43,119 --> 00:22:47,000 S6: of his, his kind of long term investment. Um, it's 353 00:22:47,000 --> 00:22:49,320 S6: not a 401 K or an IRA, just a regular 354 00:22:49,320 --> 00:22:52,560 S6: taxable investment. And he was wondering if he should pull 355 00:22:52,560 --> 00:22:54,800 S6: that out and pay off his mortgage so that he 356 00:22:54,800 --> 00:22:59,520 S6: could have some, um, you know, some more margin throughout 357 00:22:59,520 --> 00:23:02,680 S6: each month. Now the problem is he makes way more, 358 00:23:02,680 --> 00:23:04,840 S6: he has a pretty low interest rate. And I told 359 00:23:04,840 --> 00:23:08,000 S6: him that you're kind of losing money if you, if 360 00:23:08,080 --> 00:23:10,280 S6: you take it out of the investment making more than 361 00:23:10,280 --> 00:23:12,960 S6: what you the interest that you're paying. And I'm curious 362 00:23:13,000 --> 00:23:14,360 S6: what you thought about that. 363 00:23:14,840 --> 00:23:17,640 S1: Yeah. Well, I mean, you're certainly right. And I think 364 00:23:17,640 --> 00:23:19,399 S1: we need to look at this and start with the 365 00:23:19,400 --> 00:23:21,560 S1: heart of the issue. It's, you know, it's a cash 366 00:23:21,560 --> 00:23:25,080 S1: flow problem because he can't make ends meet right now. 367 00:23:25,359 --> 00:23:28,310 S1: And so, you know, before touching the long term investments, 368 00:23:28,310 --> 00:23:32,110 S1: we need to understand is this a temporary strain or 369 00:23:32,150 --> 00:23:35,950 S1: a structural issue? And it sounds like just given the 370 00:23:36,109 --> 00:23:39,590 S1: salary he's at, you know, his budget just doesn't balance. 371 00:23:39,590 --> 00:23:42,390 S1: So really the only options would be, you know, pay 372 00:23:42,390 --> 00:23:45,590 S1: it off and yes, forego that additional money he'd be 373 00:23:45,590 --> 00:23:48,669 S1: giving up long term. And we'll talk about that a 374 00:23:48,670 --> 00:23:52,109 S1: bit more. So the opportunity cost of what this money 375 00:23:52,109 --> 00:23:56,830 S1: is doing, working for him, sell the home and downsize or, 376 00:23:56,869 --> 00:23:59,110 S1: you know, find a way to get income up or 377 00:23:59,150 --> 00:24:02,270 S1: cut expenses in other areas. But, you know, the three 378 00:24:02,270 --> 00:24:08,149 S1: big budget busters are generally housing, transportation, and food. Food 379 00:24:08,150 --> 00:24:12,030 S1: is a little easier to rightsize how transportation after that, 380 00:24:12,030 --> 00:24:16,510 S1: housing is the most challenging because it's so costly to 381 00:24:16,550 --> 00:24:19,070 S1: buy and sell homes, not to mention the just the 382 00:24:19,070 --> 00:24:23,629 S1: expense and time that goes into to moving. And especially 383 00:24:23,630 --> 00:24:25,859 S1: if he's going from a low interest rate mortgage to 384 00:24:25,900 --> 00:24:29,820 S1: a higher interest rate mortgage. You know, even downsizing may 385 00:24:29,820 --> 00:24:32,740 S1: not help to to right the ship, so to speak, 386 00:24:32,740 --> 00:24:34,820 S1: because that payment's going to go up as a result 387 00:24:34,820 --> 00:24:39,500 S1: of that, that higher interest rate. So, you know, obviously 388 00:24:39,500 --> 00:24:41,260 S1: he can't get in a position where he's going to 389 00:24:41,260 --> 00:24:44,379 S1: put his house at risk or cause other things to 390 00:24:44,420 --> 00:24:46,460 S1: fall behind. So we're going to have to deal with 391 00:24:46,460 --> 00:24:49,620 S1: the cash flow issue. And, you know, unless there's an 392 00:24:49,619 --> 00:24:52,939 S1: opportunity to cut expenses in other places to make the 393 00:24:52,980 --> 00:24:57,500 S1: budget balance, you know, this is one way he could go. 394 00:24:57,540 --> 00:24:59,740 S1: I mean, if you had said it was a retirement account, 395 00:25:00,060 --> 00:25:03,020 S1: which you said it's not, that would be concerning because 396 00:25:03,020 --> 00:25:06,379 S1: the tax hit. So now it's really just the opportunity cost. 397 00:25:06,380 --> 00:25:08,740 S1: But we need to make sure that even once he 398 00:25:08,740 --> 00:25:12,020 S1: liquidates this, that he's still on a solid financial footing, 399 00:25:12,020 --> 00:25:16,340 S1: meaning does it truly rightsize the budget number one, does 400 00:25:16,340 --> 00:25:19,260 S1: he have an emergency fund remaining when this is done 401 00:25:19,260 --> 00:25:21,220 S1: and he's paid it off to get rid of the 402 00:25:21,380 --> 00:25:24,890 S1: the mortgage payment? Um, will he be on that be 403 00:25:24,930 --> 00:25:27,770 S1: able to fund retirement? You know, with a goal of 404 00:25:27,810 --> 00:25:29,889 S1: even if he's not there today, over time, getting up 405 00:25:29,890 --> 00:25:34,609 S1: to 10 to 15% of his pay. Because if not, then, 406 00:25:34,650 --> 00:25:37,290 S1: you know, we may need to deal with the bigger issue, 407 00:25:37,330 --> 00:25:40,810 S1: which is maybe there's just too much house here. And 408 00:25:40,810 --> 00:25:42,810 S1: I realize these are not easy, but what are your 409 00:25:42,810 --> 00:25:43,649 S1: thoughts on that? 410 00:25:45,930 --> 00:25:48,570 S6: Yeah, I do agree with you. I know that, um, 411 00:25:49,609 --> 00:25:52,530 S6: he has a pretty good I mean, it's a, he 412 00:25:52,570 --> 00:25:56,050 S6: has a growing family. So it seems like the house is, 413 00:25:56,050 --> 00:26:00,850 S6: it's not too big for him. Um, and he's doing 414 00:26:00,850 --> 00:26:02,649 S6: all the little things that he can to get to 415 00:26:02,650 --> 00:26:06,330 S6: get extra money. Um, but it always seems to come 416 00:26:06,330 --> 00:26:09,570 S6: up a little short. Um, you know, the rising inflation 417 00:26:09,570 --> 00:26:12,210 S6: just costs are going up and stuff like that. 418 00:26:12,810 --> 00:26:16,250 S1: Yeah, yeah, no, I certainly understand that, you know, so 419 00:26:16,250 --> 00:26:18,730 S1: I think where it might make sense because there's no 420 00:26:18,730 --> 00:26:21,090 S1: tax impact, although he does need to look at if 421 00:26:21,090 --> 00:26:24,119 S1: it's been doing well he could have capital gains, so 422 00:26:24,119 --> 00:26:26,719 S1: he's going to have to factor that in. But again, 423 00:26:26,720 --> 00:26:30,080 S1: as long as he's not completely depleting himself of investments, 424 00:26:30,080 --> 00:26:32,600 S1: hopefully he has been funding retirement accounts or he has 425 00:26:32,600 --> 00:26:37,040 S1: the ability to um and that this is truly solvable 426 00:26:37,040 --> 00:26:40,240 S1: by getting rid of this mortgage such that again, emergency 427 00:26:40,240 --> 00:26:44,400 S1: fund living below his means with some margin and, you know, 428 00:26:44,440 --> 00:26:49,400 S1: putting money toward, uh, long term investments, you know, primarily 429 00:26:49,400 --> 00:26:52,560 S1: in tax deferred environments. I mean, those are all key. 430 00:26:52,880 --> 00:26:55,160 S1: And if not, we need to perhaps deal with the, 431 00:26:55,160 --> 00:26:58,040 S1: the bigger structural issues before he were to make a 432 00:26:58,040 --> 00:27:00,920 S1: move as major as this where he's, you know, depleting 433 00:27:00,920 --> 00:27:03,880 S1: a lot of his liquidity. Um, so perhaps we do this. 434 00:27:03,920 --> 00:27:06,400 S1: I don't know if he'd be interested in, in meeting 435 00:27:06,400 --> 00:27:09,360 S1: with one of our certified financial counselors, but this would 436 00:27:09,359 --> 00:27:12,360 S1: be somebody who's trained to deal with budgets and spending 437 00:27:12,359 --> 00:27:15,760 S1: plans and, you know, debt repayment and, you know, perhaps 438 00:27:15,760 --> 00:27:17,960 S1: could be an arm's length, not a family member, but 439 00:27:17,960 --> 00:27:21,669 S1: somebody just to give objective counsel to help look at 440 00:27:21,710 --> 00:27:25,189 S1: the entire picture. We'll cover the cost for it so 441 00:27:25,190 --> 00:27:27,990 S1: it won't cost him anything. They could have several meetings 442 00:27:27,990 --> 00:27:31,710 S1: and maybe develop a path forward looking, you know, beyond 443 00:27:31,710 --> 00:27:33,629 S1: just what you and I have a couple of minutes 444 00:27:33,630 --> 00:27:35,510 S1: to talk about here, but kind of getting into all 445 00:27:35,510 --> 00:27:38,030 S1: the numbers, would that do you think that would interest him? 446 00:27:38,990 --> 00:27:39,629 S6: Yes I do. 447 00:27:40,109 --> 00:27:43,310 S1: Okay, let's do that, Shane. So we'll make that available 448 00:27:43,310 --> 00:27:45,670 S1: to you. If you hold the line, we'll get your information, 449 00:27:45,670 --> 00:27:48,310 S1: get you connected. You can pass it on to him again. 450 00:27:48,310 --> 00:27:50,430 S1: There won't be any cost for it. It's just our 451 00:27:50,430 --> 00:27:54,030 S1: gift to you. And let's just pray that together, they 452 00:27:54,030 --> 00:27:55,870 S1: can come up with a plan that makes sense. That 453 00:27:55,869 --> 00:27:59,149 S1: may involve just what he's suggesting, but I'd want them 454 00:27:59,150 --> 00:28:02,230 S1: to believe that and see on paper how this works 455 00:28:02,230 --> 00:28:05,870 S1: longer term, assuming they do in fact pay off this mortgage. 456 00:28:06,869 --> 00:28:09,150 S6: Okay. Thank you so much, Rob. I appreciate your advice. 457 00:28:09,430 --> 00:28:12,229 S1: Absolutely, Shane. Lord bless you, bud. Take care. Let's go 458 00:28:12,230 --> 00:28:15,670 S1: to New York. Rebecca, how can I help you? 459 00:28:16,630 --> 00:28:19,980 S7: Hi, Rob. Thank you so much for your show. And 460 00:28:20,220 --> 00:28:23,300 S7: we learned a lot. And we're thankful. But I'm calling 461 00:28:23,300 --> 00:28:30,060 S7: because we've kept our emergency fund money in, um, the 462 00:28:30,060 --> 00:28:32,900 S7: government money market. So it's like government bonds. 463 00:28:33,140 --> 00:28:33,540 S1: Yeah. 464 00:28:33,580 --> 00:28:37,180 S7: And I was just reviewing our finances the other day 465 00:28:37,180 --> 00:28:41,340 S7: and noticed that it's not FDIC insured. And so I'm wondering, 466 00:28:41,340 --> 00:28:44,219 S7: is that probably not the best place to keep our 467 00:28:44,220 --> 00:28:47,100 S7: emergency fund, or should I move it into a regular 468 00:28:47,140 --> 00:28:49,300 S7: bank account? What are your thoughts? 469 00:28:49,820 --> 00:28:52,340 S1: Yeah. Great question. Where do you have that? Is it 470 00:28:52,340 --> 00:28:53,980 S1: at a bank or a brokerage firm? 471 00:28:55,220 --> 00:28:58,460 S7: It's with fidelity. It's their s p a x x 472 00:28:58,500 --> 00:28:59,020 S7: I think. 473 00:28:59,500 --> 00:29:04,820 S1: Got it. Okay. Yeah. So you're right. It's not FDIC insured. Um, 474 00:29:04,820 --> 00:29:07,940 S1: but what we're talking about here, if it's a government 475 00:29:07,940 --> 00:29:12,700 S1: money market, uh, it's backed by, you know, government bills, 476 00:29:12,700 --> 00:29:16,620 S1: bonds and notes. So that means this is very safe 477 00:29:16,620 --> 00:29:22,050 S1: either way because you're invested in government securities. Um, so, 478 00:29:22,090 --> 00:29:25,570 S1: you know, I wouldn't have any concern about, uh, you know, 479 00:29:25,610 --> 00:29:29,490 S1: the safety of this, again, even though it's not FDIC insured, 480 00:29:29,490 --> 00:29:32,650 S1: what it's invested in is very safe underneath it. So 481 00:29:32,690 --> 00:29:34,170 S1: I think at the end of the day, what you 482 00:29:34,170 --> 00:29:37,290 S1: would want to look at is, you know, safety. And 483 00:29:37,290 --> 00:29:40,050 S1: we've already said that's that's good liquidity. Do you get 484 00:29:40,050 --> 00:29:44,010 S1: easy access? And then what kind of yield are you getting? 485 00:29:44,010 --> 00:29:48,650 S1: Are you getting a competitive yield on this versus other options. 486 00:29:48,730 --> 00:29:52,170 S1: So how does it compare to a high yield savings account, uh, 487 00:29:52,170 --> 00:29:55,970 S1: or direct treasury bills that you could get through, you know, 488 00:29:56,010 --> 00:30:01,330 S1: directly from the US government@treasurydirect.gov or a money market account 489 00:30:01,330 --> 00:30:04,969 S1: that does have FDIC insurance. Are you satisfied with the 490 00:30:04,970 --> 00:30:05,810 S1: yield on it? 491 00:30:06,770 --> 00:30:10,370 S7: I am it's comparable to, if not a tiny bit 492 00:30:10,370 --> 00:30:14,250 S7: better than our high yield savings account. So it's it's 493 00:30:14,250 --> 00:30:15,010 S7: pretty good. 494 00:30:15,650 --> 00:30:18,840 S1: Okay. Yeah. Very good. So, you know, I would say 495 00:30:19,240 --> 00:30:22,520 S1: that if your primary concern because the yields okay, it's 496 00:30:22,520 --> 00:30:25,960 S1: with an institution you're already with and you know you've 497 00:30:25,960 --> 00:30:29,720 S1: got ready liquidity. Then in terms of safety, a government 498 00:30:29,720 --> 00:30:33,960 S1: money market fund that's not FDIC insured is still in 499 00:30:34,000 --> 00:30:38,160 S1: the very safe category just because of of what it's 500 00:30:38,160 --> 00:30:40,840 S1: invested in. They're backed by the full faith and credit 501 00:30:40,840 --> 00:30:43,480 S1: of the United States government. So I would feel pretty 502 00:30:43,480 --> 00:30:45,560 S1: good about that. So I think you can stay right 503 00:30:45,560 --> 00:30:47,959 S1: where you are, Rebecca. But it's a great question. I 504 00:30:47,960 --> 00:30:50,800 S1: appreciate you asking and thanks for listening to the program 505 00:30:50,800 --> 00:30:53,280 S1: call anytime. We'll be right back with more faith and 506 00:30:53,280 --> 00:31:05,960 S1: finance live after this. Stay with us. Great to have 507 00:31:05,960 --> 00:31:07,959 S1: you with us today on Faith and Finance Live. Hey, 508 00:31:08,000 --> 00:31:10,000 S1: if you love the program, you'd like to help us 509 00:31:10,000 --> 00:31:13,160 S1: reach more people as a listener supported ministry, one of 510 00:31:13,160 --> 00:31:16,910 S1: the key ways listeners do that is by coming partners 511 00:31:16,910 --> 00:31:19,790 S1: of Faith fi. That's right. Partners support the ministry at 512 00:31:19,790 --> 00:31:22,990 S1: $35 a month or more. And as a thank you, 513 00:31:23,030 --> 00:31:25,870 S1: we send you all of our resources. So for issues 514 00:31:25,870 --> 00:31:28,910 S1: of our magazine faithful steward, every time we come out 515 00:31:28,910 --> 00:31:31,230 S1: with a new study or devotional, it's mailed to your 516 00:31:31,230 --> 00:31:35,950 S1: door a quarterly ministry update from me and our brand 517 00:31:35,950 --> 00:31:39,110 S1: new field guides, which launched this summer. You'll receive the 518 00:31:39,110 --> 00:31:42,710 S1: very first one on How Much Is Enough. It's a 519 00:31:42,710 --> 00:31:45,550 S1: phenomenal program and we also give you access to the 520 00:31:45,550 --> 00:31:47,790 S1: Faith V app. So if you'd like to learn more, 521 00:31:47,790 --> 00:31:53,150 S1: you can just head to Faith viktorwrites.com. That's faith fi.com. 522 00:31:54,590 --> 00:31:57,230 S1: And thanks in advance. Let's head back to the phones. 523 00:31:57,230 --> 00:31:59,870 S1: We're going to head to Dublin, Georgia. Randy. Go ahead. 524 00:32:01,430 --> 00:32:03,430 S8: Hey there. Thank you so much. I know this is 525 00:32:03,430 --> 00:32:06,190 S8: a God thing to get Ahold of you. Hey, uh, 526 00:32:06,270 --> 00:32:10,430 S8: my wife and I are raising four granddaughters, two of 527 00:32:10,430 --> 00:32:13,310 S8: them in college and two of them at home. And 528 00:32:13,310 --> 00:32:19,060 S8: we're looking at ways to save money. She's retired. I'm 529 00:32:19,060 --> 00:32:22,700 S8: still working at 50%. One area we were looking at. 530 00:32:23,140 --> 00:32:25,660 S8: My wife has an insurance policy, which has a cash 531 00:32:25,660 --> 00:32:31,820 S8: value of about $103,000, and she has, uh, life insurance 532 00:32:31,820 --> 00:32:35,820 S8: policies on eight grandchildren, each of them. The cash value 533 00:32:35,860 --> 00:32:41,260 S8: is about 4000. The combination of those is it costs 534 00:32:41,260 --> 00:32:45,380 S8: us $1,000 a month. We were wondering if it would 535 00:32:45,420 --> 00:32:48,860 S8: be wise to cash those in and put them into 536 00:32:48,860 --> 00:32:50,660 S8: the investment accounts that we have. 537 00:32:51,260 --> 00:32:54,740 S1: Yes. It's a great question, Randy. I appreciate you asking. 538 00:32:54,740 --> 00:32:56,660 S1: So let me just clarify a couple of things. First 539 00:32:56,660 --> 00:32:59,260 S1: of all, starting with the big picture, a thousand a 540 00:32:59,260 --> 00:33:03,380 S1: month in premiums on a limited income is significant 12,000 541 00:33:03,420 --> 00:33:05,820 S1: a year. So we want to make sure that money 542 00:33:05,820 --> 00:33:09,420 S1: is doing the most important job for you right now. 543 00:33:09,420 --> 00:33:13,570 S1: So let's break these down. You said your policy. Is 544 00:33:13,570 --> 00:33:17,050 S1: it on your wife's life? Payable to you as a 545 00:33:17,050 --> 00:33:17,970 S1: death benefit? 546 00:33:19,570 --> 00:33:20,170 S8: Yes. 547 00:33:20,610 --> 00:33:23,650 S1: Okay. And what is the death benefit? And then also, 548 00:33:23,690 --> 00:33:25,170 S1: what is the cash value? 549 00:33:26,530 --> 00:33:32,650 S8: Yes, it's a $300,000, uh, whole universal whole life. And 550 00:33:32,690 --> 00:33:35,930 S8: the as of now, the cash value is 103,000. 551 00:33:36,370 --> 00:33:38,810 S1: Okay. Got it. All right, so you guys have been 552 00:33:38,810 --> 00:33:40,410 S1: paying on that a long time, huh? 553 00:33:41,770 --> 00:33:42,370 S8: Yes, sir. 554 00:33:42,730 --> 00:33:45,969 S1: Yeah. Okay, great. And so, I mean, I think the 555 00:33:45,970 --> 00:33:48,850 S1: key there is, you know, what could you do with 556 00:33:48,850 --> 00:33:53,209 S1: that 100,000 invested where you'd have access to the money 557 00:33:53,250 --> 00:33:55,890 S1: during your life if you need it? Uh, it's going 558 00:33:55,930 --> 00:33:59,930 S1: to be increasingly more expensive over time is likely the case, 559 00:33:59,930 --> 00:34:03,370 S1: which could at the very least just chip into that 560 00:34:03,370 --> 00:34:07,530 S1: cash value that's there. And, you know, I like the 561 00:34:07,530 --> 00:34:11,919 S1: idea of you all perhaps looking at reinvesting that with 562 00:34:11,920 --> 00:34:13,839 S1: an advisor. I'd want you to have a plan on 563 00:34:13,840 --> 00:34:16,600 S1: what you're going to do with it before you, you know, 564 00:34:16,640 --> 00:34:19,759 S1: collapse that policy and pull the cash value out. But 565 00:34:19,760 --> 00:34:23,080 S1: I might strongly consider that. I would have an advisor 566 00:34:23,080 --> 00:34:27,600 S1: evaluate that in light of your overall financial picture, in 567 00:34:27,600 --> 00:34:31,240 S1: terms of the policies on the grandchildren, you know, life 568 00:34:31,239 --> 00:34:35,960 S1: insurance on grandchildren is usually not a great idea. Um, 569 00:34:35,960 --> 00:34:38,440 S1: you know, they don't have income to replace, which is 570 00:34:38,440 --> 00:34:41,919 S1: the primary purpose of life insurance. There's a very low 571 00:34:41,920 --> 00:34:47,080 S1: probability of a need. Uh, there's a high, long term cost. Now, 572 00:34:47,080 --> 00:34:49,560 S1: we didn't talk about how much of that 1000 a 573 00:34:49,560 --> 00:34:52,720 S1: month goes to these policies, but you know, that money 574 00:34:52,719 --> 00:34:57,120 S1: could be redirected into a savings account or an investment 575 00:34:57,120 --> 00:34:59,719 S1: that could be used for their education, could be used 576 00:34:59,719 --> 00:35:02,400 S1: for gifts, could be used as a, you know, a 577 00:35:02,440 --> 00:35:04,520 S1: gift that you give to them all at one time 578 00:35:04,520 --> 00:35:06,560 S1: when they, you know, get out of college or start 579 00:35:06,600 --> 00:35:11,230 S1: on their own. Um, I mean, the only benefit to 580 00:35:11,270 --> 00:35:14,670 S1: a policy is to a child is really that it 581 00:35:14,710 --> 00:35:19,790 S1: locks in insurability. Um, in the event they become uninsurable, 582 00:35:19,790 --> 00:35:22,870 S1: which again is very low and it can build some 583 00:35:22,870 --> 00:35:26,910 S1: small cash value. But again, I'd rather you redirect the money, 584 00:35:26,910 --> 00:35:30,709 S1: whatever it is that's going to these grandchildren policies, I'd 585 00:35:30,710 --> 00:35:33,669 S1: rather you redirect that into, you know, just a five, 586 00:35:33,710 --> 00:35:37,549 S1: 29 college savings or a straight investment account that you 587 00:35:37,550 --> 00:35:40,830 S1: could systematically invest every month in a good, high quality, 588 00:35:40,870 --> 00:35:43,629 S1: low cost mutual fund. I just think that would give 589 00:35:43,630 --> 00:35:46,750 S1: you a lot more to show for it down the road, 590 00:35:46,750 --> 00:35:49,190 S1: and could be a real blessing to the grandkids. But 591 00:35:49,190 --> 00:35:50,630 S1: give me your thoughts on all that. 592 00:35:50,790 --> 00:35:55,510 S8: Oh, I totally agree. That's kind of what I was. 593 00:35:58,150 --> 00:36:01,469 S8: You know, uh, but I feel exactly like you do. 594 00:36:01,469 --> 00:36:04,069 S8: So thank you so much. That's that's what we would 595 00:36:04,070 --> 00:36:04,710 S8: like to do. 596 00:36:05,150 --> 00:36:07,470 S1: All right. If you want to connect with an advisor 597 00:36:07,469 --> 00:36:11,700 S1: there in Georgia, Randy, to evaluate that whole life policy 598 00:36:11,700 --> 00:36:13,739 S1: that you have. You know, we only have a few 599 00:36:13,739 --> 00:36:16,459 S1: minutes here together on the radio, and that's a pretty 600 00:36:16,460 --> 00:36:20,299 S1: big decision to collapse that $300,000 policy. So I'd want 601 00:36:20,340 --> 00:36:23,820 S1: an advisor to talk to you about your wife's health status, 602 00:36:24,020 --> 00:36:28,220 S1: your overall financial picture, and help you make a decision on, okay, 603 00:36:28,260 --> 00:36:31,140 S1: if we collapse the policy and she's in good health 604 00:36:31,300 --> 00:36:34,660 S1: and we lose that $300,000 death benefit, what would we 605 00:36:34,660 --> 00:36:37,540 S1: do with it? And based on a reasonable growth rate, 606 00:36:37,540 --> 00:36:39,740 S1: how long would it take for us to grow that, 607 00:36:39,900 --> 00:36:45,980 S1: you know, to 300,000 versus the ongoing costs associated with 608 00:36:46,020 --> 00:36:49,819 S1: keeping that policy in force and really run that analysis 609 00:36:49,820 --> 00:36:53,140 S1: for you all to make a really well-informed decision. Um, 610 00:36:53,140 --> 00:36:56,860 S1: but I think the, the grandchildren that those policies, that's 611 00:36:56,860 --> 00:37:00,180 S1: pretty easy in my mind to say. We could probably 612 00:37:00,180 --> 00:37:04,060 S1: repurpose that money in a better way even without you 613 00:37:04,100 --> 00:37:05,980 S1: connecting with an advisor. But if you want to find 614 00:37:05,980 --> 00:37:10,770 S1: somebody in your area, you can go to find a.com 615 00:37:11,010 --> 00:37:14,170 S1: or if you'd prefer. You can hold the line and 616 00:37:14,489 --> 00:37:16,489 S1: our team can help you get connected with somebody who 617 00:37:16,489 --> 00:37:18,890 S1: could do that search for you. Randy, you sound like 618 00:37:18,890 --> 00:37:21,690 S1: a great grandfather. We appreciate your call today. And if 619 00:37:21,690 --> 00:37:23,690 S1: I can help further along the way, just give me 620 00:37:23,690 --> 00:37:26,530 S1: a call. Let's go to Michigan. Hi, Marsha. Go ahead. 621 00:37:27,370 --> 00:37:27,690 S7: Hi. 622 00:37:28,370 --> 00:37:32,770 S9: Thank you for taking my call. Um, just this last year, 623 00:37:32,770 --> 00:37:36,410 S9: I've been getting calls, I guess, from I the internal 624 00:37:36,410 --> 00:37:43,090 S9: revenue system. About that. I'm delinquent with my taxes. Well, 625 00:37:43,250 --> 00:37:47,370 S9: I didn't know you had to pay taxes on Social Security. 626 00:37:47,370 --> 00:37:51,570 S9: And I've been retired for ten years. So I've got 627 00:37:51,570 --> 00:37:56,010 S9: ten years of taxes that have piled up and I'm 628 00:37:56,050 --> 00:38:00,290 S9: not sure. Um, she said there was some tax relief, um, 629 00:38:00,770 --> 00:38:05,170 S9: benefits going on, but I don't know quite how to 630 00:38:05,210 --> 00:38:07,200 S9: approach this? Yes, I. 631 00:38:07,200 --> 00:38:09,839 S1: Think. Well, I'm so glad you called. And the first 632 00:38:09,840 --> 00:38:12,680 S1: thing I would say, Marsha, is don't panic, but let's 633 00:38:12,680 --> 00:38:15,640 S1: not ignore it. Um, you know, the IRS will work 634 00:38:15,640 --> 00:38:19,160 S1: with people who respond, but problems grow if they're ignored. Now, 635 00:38:19,320 --> 00:38:23,000 S1: the biggest thing I'm wondering is let's verify that you 636 00:38:23,000 --> 00:38:26,799 S1: do actually owe taxes. There is a lot of fraud 637 00:38:26,800 --> 00:38:30,600 S1: and scams. And the fact that somebody called you is 638 00:38:30,600 --> 00:38:34,359 S1: that is the first suspicion in my mind versus you 639 00:38:34,360 --> 00:38:38,200 S1: getting a letter from the IRS. So are you saying 640 00:38:38,200 --> 00:38:41,040 S1: that somebody called you and said you owe taxes? 641 00:38:41,239 --> 00:38:45,239 S9: A lot of people. I got a lot of calls 642 00:38:46,000 --> 00:38:48,520 S9: and they left their number, and I don't know how 643 00:38:48,520 --> 00:38:51,040 S9: to trust them. I don't know. 644 00:38:51,680 --> 00:38:55,600 S1: Yeah. So I would say that's probably not legitimate. If 645 00:38:55,640 --> 00:38:58,760 S1: you're getting a phone call, the IRS does not call you. 646 00:38:58,920 --> 00:39:02,080 S1: The IRS will always send you a notice through the mail. 647 00:39:02,120 --> 00:39:04,790 S1: Have you received anything from the IRS. 648 00:39:05,790 --> 00:39:07,670 S9: No, no I haven't. 649 00:39:07,870 --> 00:39:10,149 S1: All right. And let me ask you, all these years 650 00:39:10,150 --> 00:39:13,910 S1: you've been collecting Social Security. Did you have additional income 651 00:39:13,910 --> 00:39:18,390 S1: beyond the Social Security? Nope. Okay. If if all you 652 00:39:18,390 --> 00:39:22,109 S1: had was Social Security income and no other income, you 653 00:39:22,110 --> 00:39:23,430 S1: don't owe any taxes. 654 00:39:23,989 --> 00:39:24,910 S9: Really? 655 00:39:25,230 --> 00:39:27,710 S1: I'm going to tell you. Yeah. So this is a 656 00:39:27,870 --> 00:39:32,350 S1: scam or somebody who's trying to get your personal information. 657 00:39:32,390 --> 00:39:35,590 S1: Have you provided any information to them over the phone 658 00:39:35,590 --> 00:39:36,590 S1: or in any other way? 659 00:39:36,630 --> 00:39:39,989 S9: No, I haven't called any of them back because I 660 00:39:40,030 --> 00:39:43,790 S9: don't know if they're for real or I don't trust them. Yeah, 661 00:39:43,830 --> 00:39:45,989 S9: I didn't know. I didn't know what to do, but 662 00:39:45,989 --> 00:39:49,110 S9: taxes are coming up. So I was going to even 663 00:39:49,110 --> 00:39:53,589 S9: this week try and find somebody to do my taxes with. 664 00:39:53,630 --> 00:39:55,070 S9: But you say I don't have to. 665 00:39:55,430 --> 00:39:59,790 S1: Yeah. If you if Social Security is your only income 666 00:40:00,150 --> 00:40:04,259 S1: and you don't have a pension or IRA withdrawals or 667 00:40:04,260 --> 00:40:08,620 S1: wages or investment income. You typically do not owe federal 668 00:40:08,620 --> 00:40:13,580 S1: income taxes, and the fact that you have never received 669 00:40:13,580 --> 00:40:15,939 S1: anything from the IRS through the mail, and you've only 670 00:40:15,940 --> 00:40:19,100 S1: gotten phone calls from people claiming to be from any 671 00:40:19,100 --> 00:40:22,219 S1: number of places, including the IRS. That is not a 672 00:40:22,219 --> 00:40:25,100 S1: legitimate inquiry. That's not the IRS. 673 00:40:25,300 --> 00:40:29,980 S9: Oh, boy, what a relief. I really appreciate your help. 674 00:40:30,940 --> 00:40:31,259 S1: Well you're. 675 00:40:31,260 --> 00:40:31,620 S9: Welcome. 676 00:40:32,700 --> 00:40:34,940 S1: Well I'm glad. Now, if you if you want to 677 00:40:34,980 --> 00:40:37,339 S1: get with somebody who can go over your situation just 678 00:40:37,340 --> 00:40:40,540 S1: to confirm that there's nothing else there that maybe you 679 00:40:40,540 --> 00:40:43,980 S1: haven't thought of that you know, could generate a tax 680 00:40:43,980 --> 00:40:47,540 S1: beyond just the Social Security. You could connect with a CPA, 681 00:40:47,780 --> 00:40:50,180 S1: but the fact that you've been getting phone calls tells 682 00:40:50,180 --> 00:40:54,020 S1: me you don't need to worry about that. Um, and 683 00:40:54,060 --> 00:40:56,900 S1: you know, I would definitely not ever return any calls. 684 00:40:56,900 --> 00:41:00,140 S1: Definitely don't give any information over the phone, even if 685 00:41:00,140 --> 00:41:03,609 S1: they say they're from the IRS and they threaten, you know, 686 00:41:03,650 --> 00:41:07,169 S1: legal action or arrest or anything like that. You just 687 00:41:07,170 --> 00:41:10,370 S1: need to know the IRS does never call you. They 688 00:41:10,370 --> 00:41:13,810 S1: will always mail you directly through the US Postal Service. 689 00:41:14,730 --> 00:41:18,290 S9: I so appreciate your advice. Thank you so much. 690 00:41:18,489 --> 00:41:20,770 S1: You're welcome. God bless you. Marcia, thanks for being on 691 00:41:20,770 --> 00:41:24,250 S1: the program today. I'm so thrilled you called. Uh, well, uh, 692 00:41:24,250 --> 00:41:27,370 S1: let's see, we are, unfortunately, out of time. Uh, Diane 693 00:41:27,370 --> 00:41:29,089 S1: there in Georgia. Let's see if we can get you 694 00:41:29,130 --> 00:41:33,049 S1: scheduled for tomorrow's broadcast, folks. So thankful to have you 695 00:41:33,050 --> 00:41:35,170 S1: along with us today. You know, here's our goal on 696 00:41:35,170 --> 00:41:37,770 S1: this program each day, just to be an encouragement to you, 697 00:41:37,770 --> 00:41:40,290 S1: to point you to God as your ultimate treasure, to 698 00:41:40,330 --> 00:41:43,570 S1: help you see money as a tool to accomplish God's purposes. 699 00:41:43,570 --> 00:41:46,609 S1: This is not something that should be fearful. It should 700 00:41:46,610 --> 00:41:50,529 S1: not be overwhelming. Uh, there's help out there. We're here 701 00:41:50,530 --> 00:41:53,650 S1: to provide it through our certified Christian Financial counselor, Certified 702 00:41:53,650 --> 00:41:56,370 S1: Kingdom Advisors. But at the end of the day, we 703 00:41:56,370 --> 00:41:58,890 S1: can look to God's Word. We can look to those 704 00:41:58,890 --> 00:42:03,880 S1: that he's allowed to come alongside us and find direction, hope, 705 00:42:04,200 --> 00:42:07,400 S1: and ultimately that God is our provider. And so we 706 00:42:07,400 --> 00:42:10,359 S1: can rest and trust in that. Listen, if you want 707 00:42:10,400 --> 00:42:12,680 S1: to find a, C, k, a in your area, again, 708 00:42:12,680 --> 00:42:16,440 S1: that website is find a c.com. These are men and 709 00:42:16,440 --> 00:42:20,560 S1: women that have been trained who are professional financial advisors 710 00:42:20,560 --> 00:42:24,080 S1: and investment advisors, but they met high standards and character 711 00:42:24,080 --> 00:42:27,280 S1: and competence. They've been trained to bring a biblical worldview. 712 00:42:27,320 --> 00:42:30,200 S1: There's more than 2000 of them in the US and Canada. Again, 713 00:42:30,200 --> 00:42:34,240 S1: that website find a c.com. If you'd like to support 714 00:42:34,239 --> 00:42:38,000 S1: faith fi, just go to faith.com/give. We say thanks to 715 00:42:38,000 --> 00:42:43,680 S1: my amazing team team today, uh, Jim, Henry, Taylor, Tahera, Josh, Dan, 716 00:42:43,680 --> 00:42:46,720 S1: and everybody here at faith fi that makes this possible. 717 00:42:46,760 --> 00:42:49,319 S1: Faith and finance lives a partnership between Moody Radio and 718 00:42:49,320 --> 00:42:51,319 S1: Faith fi. Come back and join us tomorrow. We'll see 719 00:42:51,320 --> 00:42:52,120 S1: you then. Bye bye.