1 00:00:08,640 --> 00:00:11,000 S1: To become like Christ is the only thing in the 2 00:00:11,000 --> 00:00:14,880 S1: world worth caring for. The thing before which every ambition 3 00:00:14,880 --> 00:00:18,520 S1: of man is folly and all lower achievement vain. Hi, 4 00:00:18,520 --> 00:00:22,119 S1: I'm Rob West. Those words from Henry Drummond cut straight 5 00:00:22,120 --> 00:00:25,240 S1: to the heart of how Scripture defines success in a 6 00:00:25,239 --> 00:00:29,840 S1: culture that measures achievement by accumulation and applause. Jesus offers 7 00:00:29,840 --> 00:00:34,760 S1: a very different scoreboard. Today, we're redefining success and exploring 8 00:00:34,760 --> 00:00:37,360 S1: what truly matters to God. And then it's on to 9 00:00:37,400 --> 00:00:42,640 S1: your calls at 800 525 7000. This is faith and finance. Live. 10 00:00:42,680 --> 00:00:48,960 S1: Biblical wisdom for your financial journey. It's easy to think 11 00:00:48,960 --> 00:00:51,440 S1: that if we could just reach a little higher, earn 12 00:00:51,440 --> 00:00:54,080 S1: a little more, or move a little faster than we'd 13 00:00:54,080 --> 00:00:57,400 S1: finally arrive. We see that impulse right at the beginning 14 00:00:57,400 --> 00:01:00,310 S1: of Scripture in the Garden of Eden. Adam and Eve 15 00:01:00,350 --> 00:01:04,069 S1: weren't lacking anything, but they believed there was something better, 16 00:01:04,069 --> 00:01:07,229 S1: something more. Something God was holding back. And later, at 17 00:01:07,230 --> 00:01:11,390 S1: the Tower of Babel, humanity declares in Genesis 11, let 18 00:01:11,390 --> 00:01:14,910 S1: us make a name for ourselves. Success in their minds 19 00:01:14,910 --> 00:01:19,069 S1: meant defining greatness on their own terms. That same impulse 20 00:01:19,110 --> 00:01:22,870 S1: is still very much alive today. We measure success by 21 00:01:22,870 --> 00:01:26,550 S1: paychecks and promotions, by titles, trophies, and the size of 22 00:01:26,550 --> 00:01:29,910 S1: our homes or portfolios. And in a world that equates 23 00:01:29,910 --> 00:01:33,630 S1: success with accumulation, it's hard not to ask am I 24 00:01:33,670 --> 00:01:38,910 S1: successful yet? Will more finally be enough? Jesus speaks directly 25 00:01:38,910 --> 00:01:42,709 S1: into that tension in Luke 1215. He says, take care. 26 00:01:42,750 --> 00:01:45,949 S1: Be on your guard against all covetousness, for one's life 27 00:01:45,950 --> 00:01:49,670 S1: does not consist in the abundance of his possessions. Then, 28 00:01:49,670 --> 00:01:52,470 S1: as he often does, he tells a story. A wealthy 29 00:01:52,470 --> 00:01:57,230 S1: man experiences an unusually abundant harvest. His land produces more 30 00:01:57,230 --> 00:02:00,020 S1: than he can store, so he makes a plan, tear 31 00:02:00,060 --> 00:02:03,180 S1: down the old barns and build bigger ones and settle 32 00:02:03,180 --> 00:02:06,540 S1: into a life of ease. He says to himself, soul, 33 00:02:06,580 --> 00:02:09,900 S1: you have ample goods laid up for many years. Relax, eat, 34 00:02:09,900 --> 00:02:14,140 S1: drink and be merry. On the surface, this sounds like success. 35 00:02:14,180 --> 00:02:17,100 S1: He planned ahead. He saved. He prepared for the future. 36 00:02:17,180 --> 00:02:20,340 S1: But Jesus calls him a fool. Why? Listen to the 37 00:02:20,340 --> 00:02:25,140 S1: man's language? My barns. Migraine, my goods, my soul. There's 38 00:02:25,139 --> 00:02:29,580 S1: no gratitude, no dependence on God, no concern for others. 39 00:02:29,580 --> 00:02:33,579 S1: His definition of success was accumulation, and his confidence was 40 00:02:33,580 --> 00:02:37,580 S1: rooted entirely in what he had stored up. God's response 41 00:02:37,580 --> 00:02:40,940 S1: is sobering. This night, your soul is required of you 42 00:02:40,940 --> 00:02:43,660 S1: and the things you have prepared. Whose will they be? 43 00:02:43,940 --> 00:02:47,340 S1: Jesus concludes, so is the one who lays up treasure 44 00:02:47,340 --> 00:02:51,260 S1: for himself and is not rich toward God. That story 45 00:02:51,260 --> 00:02:54,780 S1: is meant to shake us awake. It exposes how easily 46 00:02:54,780 --> 00:02:59,890 S1: we confuse preparation with control and wisdom with self-reliance. God 47 00:02:59,889 --> 00:03:03,410 S1: isn't measuring success by what we store. He's measuring it 48 00:03:03,410 --> 00:03:07,570 S1: by what we surrender. The Apostle Paul understood this well 49 00:03:07,610 --> 00:03:11,570 S1: by every cultural standard of his day. Paul had succeeded. 50 00:03:11,770 --> 00:03:14,930 S1: Yet he writes in Philippians three eight, I count everything 51 00:03:14,930 --> 00:03:17,889 S1: as loss because of the surpassing worth of knowing Christ 52 00:03:17,930 --> 00:03:21,930 S1: Jesus my Lord. Paul didn't lower the bar for success. 53 00:03:21,930 --> 00:03:26,329 S1: He replaced it. Scripture tells us God's goal for our lives. Plainly, 54 00:03:26,330 --> 00:03:29,770 S1: for those whom he foreknew, he also predestined to be 55 00:03:29,770 --> 00:03:34,290 S1: conformed to the image of His Son. Romans 829. That's 56 00:03:34,290 --> 00:03:39,130 S1: the metric not income, not influence, not recognition. Christ likeness. 57 00:03:39,410 --> 00:03:42,010 S1: So let me invite you to reflect for a moment 58 00:03:42,010 --> 00:03:45,650 S1: what scoreboard are you watching right now? Whose applause are 59 00:03:45,650 --> 00:03:49,170 S1: you chasing? If your goals are rooted in impressing others 60 00:03:49,170 --> 00:03:53,650 S1: or securing more for yourself, you'll never find true satisfaction. 61 00:03:53,650 --> 00:03:56,810 S1: But if your goals are rooted in becoming more like Christ, 62 00:03:56,850 --> 00:04:00,650 S1: you'll discover a kind of success that cannot be taken away. 63 00:04:01,090 --> 00:04:05,450 S1: Jesus invites us to measure progress differently. Instead of asking, 64 00:04:05,450 --> 00:04:08,370 S1: did I win today? We can ask, did I look 65 00:04:08,410 --> 00:04:11,970 S1: a little more like Jesus today? Success in God's economy 66 00:04:11,970 --> 00:04:16,890 S1: is measured by obedience, not accumulation, by faithfulness, not fame. 67 00:04:17,050 --> 00:04:20,770 S1: And God delights in what is done faithfully even when 68 00:04:20,770 --> 00:04:24,210 S1: no one else sees. Jesus puts it plainly in Matthew 69 00:04:24,250 --> 00:04:27,530 S1: 1626 for what will it profit a man if he 70 00:04:27,529 --> 00:04:31,089 S1: gains the whole world and forfeits his soul? When all 71 00:04:31,089 --> 00:04:33,850 S1: is said and done, it's not about bigger barns or 72 00:04:33,850 --> 00:04:38,210 S1: better resumes. Real success isn't what you gain, it's who 73 00:04:38,250 --> 00:04:41,930 S1: you become in Christ. This is precisely one of the 74 00:04:41,930 --> 00:04:45,529 S1: reasons why I wrote my new 21 day devotional, Our 75 00:04:45,529 --> 00:04:48,970 S1: Ultimate Treasure. Each day is designed to help you realign 76 00:04:49,010 --> 00:04:53,370 S1: your heart and your financial decisions with God's purposes. You 77 00:04:53,370 --> 00:04:55,930 S1: can order your copy or place a bulk order for 78 00:04:55,930 --> 00:05:04,000 S1: your church or small group at faith. That's faith. Alright, 79 00:05:04,000 --> 00:05:08,640 S1: your calls are next. The number 800 525 7000. That's 80 00:05:08,640 --> 00:05:13,720 S1: 800 525 7000. We look forward to encouraging you, equipping 81 00:05:13,720 --> 00:05:16,400 S1: you and pointing you back to Scripture as we answer 82 00:05:16,400 --> 00:05:19,640 S1: your financial questions today. I'm Rob West and this is 83 00:05:19,640 --> 00:05:22,080 S1: Faith and finance Live. We'll be right back. 84 00:05:35,440 --> 00:05:38,760 S2: The opinions offered during this program represent the personal or 85 00:05:38,760 --> 00:05:43,640 S2: professional opinions of the participants, given for informational purposes only. 86 00:05:43,880 --> 00:05:47,479 S2: Any information provided is not intended to replace advice from 87 00:05:47,480 --> 00:05:52,239 S2: a financial, medical, legal, or other professional who understands your 88 00:05:52,240 --> 00:05:53,680 S2: specific situation. 89 00:06:00,750 --> 00:06:02,630 S1: Delighted to have you with us today on Faith and 90 00:06:02,630 --> 00:06:05,550 S1: finance live. I'm Rob West. We're taking your calls and 91 00:06:05,550 --> 00:06:12,710 S1: questions today. The number 800 525 7000. That's 800 525 7000. 92 00:06:12,750 --> 00:06:15,350 S1: We'll look forward to hearing from you in the news today. 93 00:06:15,350 --> 00:06:18,870 S1: Experts are saying that even after the Supreme Court limited 94 00:06:18,910 --> 00:06:22,150 S1: a broad set of tariffs last week, don't expect to 95 00:06:22,150 --> 00:06:25,830 S1: see prices suddenly fall at the checkout line. At Goldman Sachs, 96 00:06:25,830 --> 00:06:29,390 S1: economists are cautioning that most companies aren't likely to roll 97 00:06:29,390 --> 00:06:33,790 S1: prices back. Once businesses raise prices, there's very little incentive 98 00:06:33,790 --> 00:06:38,310 S1: to reverse course, especially if consumers have already absorbed the increase. 99 00:06:38,310 --> 00:06:42,150 S1: And keep in mind, in many cases, the increase was 100 00:06:42,150 --> 00:06:48,029 S1: absorbed actually by the company itself. Um, recent inflation data 101 00:06:48,029 --> 00:06:51,750 S1: shows tariffs probably weren't the main driver of higher prices 102 00:06:51,750 --> 00:06:54,510 S1: in the first place. Much of what families are feeling 103 00:06:54,510 --> 00:06:57,900 S1: at the grocery store or the hardware aisle traces back 104 00:06:57,900 --> 00:07:02,659 S1: to broader inflation issues from prior years, not current trade 105 00:07:02,660 --> 00:07:06,979 S1: policy alone. Keep in mind, as well, the administration has 106 00:07:06,980 --> 00:07:10,460 S1: also pivoted, signaling it could rely on at least four 107 00:07:10,460 --> 00:07:15,780 S1: other statutory authorities to continue or reimpose tariffs in different forms. 108 00:07:15,900 --> 00:07:20,580 S1: That ongoing uncertainty makes retailers hesitant to lower prices, even 109 00:07:20,580 --> 00:07:24,500 S1: where tariffs are reduced or paused. Supply chains and pricing 110 00:07:24,500 --> 00:07:28,820 S1: structures don't adjust overnight. You've got contracts and shipping costs 111 00:07:28,820 --> 00:07:34,020 S1: and inventory cycles. Those all cause a lag in policy changes. 112 00:07:34,140 --> 00:07:36,060 S1: So what does this mean for you? Well, first, it's 113 00:07:36,060 --> 00:07:40,420 S1: a reminder not to pin your household budget on headline expectations. 114 00:07:40,620 --> 00:07:46,260 S1: Even when Washington shifts direction, prices tend to be sticky. Second, 115 00:07:46,260 --> 00:07:49,300 S1: if your monthly spending still feels tight, this may be 116 00:07:49,300 --> 00:07:54,290 S1: a good time to revisit discretionary categories, compare prices, or 117 00:07:54,450 --> 00:07:59,330 S1: renegotiate recurring expenses. I think the bigger takeaway is steadiness. 118 00:07:59,610 --> 00:08:04,250 S1: Policy changes fast. Your financial plan shouldn't. So build margin 119 00:08:04,250 --> 00:08:08,890 S1: where you can over. Avoid overreacting to short term headlines 120 00:08:08,890 --> 00:08:13,290 S1: and focus on what you can actually control inside your 121 00:08:13,290 --> 00:08:17,690 S1: own household budget. You can't control the GDP or inflation 122 00:08:17,690 --> 00:08:20,530 S1: or the Fed's next move on interest rates, but you 123 00:08:20,570 --> 00:08:24,490 S1: can control your mini economy. What God allows to pass 124 00:08:24,490 --> 00:08:29,050 S1: through your hands. The key is applying biblical wisdom, namely 125 00:08:29,090 --> 00:08:33,530 S1: God owning it all. Start with that fundamental game changing idea. 126 00:08:33,730 --> 00:08:37,209 S1: You and I were. Stewards were charged with faithfulness. The 127 00:08:37,210 --> 00:08:40,209 S1: principles we apply. Will they come right from God's Word? 128 00:08:40,210 --> 00:08:43,090 S1: Spend less than you earn. Avoid the use of debt. 129 00:08:43,170 --> 00:08:46,890 S1: Set long term goals. Have some margin or some liquidity 130 00:08:46,890 --> 00:08:50,770 S1: in your financial life and give generously. Those are the 131 00:08:50,770 --> 00:08:55,800 S1: key building blocks, if you will, to good wise money management. 132 00:08:55,800 --> 00:08:59,040 S1: And when we give and we save appropriately and we 133 00:08:59,040 --> 00:09:02,960 S1: trust God as provider, and we set a financial finish 134 00:09:02,960 --> 00:09:06,920 S1: line for our lifestyle and we invest diligently, we put 135 00:09:06,920 --> 00:09:10,120 S1: ourselves in a position to experience God's best. And each 136 00:09:10,120 --> 00:09:11,880 S1: day on this program, we want to help you do 137 00:09:11,920 --> 00:09:15,520 S1: just that. Now we realize you have very practical questions 138 00:09:15,520 --> 00:09:18,200 S1: that come up along the way. So give us a 139 00:09:18,200 --> 00:09:20,520 S1: call with whatever you're thinking about in your financial life. 140 00:09:20,520 --> 00:09:25,880 S1: Today we're taking those calls at 800 525 7000. Let's 141 00:09:25,880 --> 00:09:27,360 S1: do that right now. We're going to begin out in 142 00:09:27,360 --> 00:09:29,560 S1: California today and go right ahead. 143 00:09:30,160 --> 00:09:33,079 S3: Hi. Yeah. Good afternoon, Miss Hannah. Thank you for taking 144 00:09:33,080 --> 00:09:36,079 S3: my call. I was just wondering, um, if your company 145 00:09:36,120 --> 00:09:38,400 S3: is going to be merging, so we don't know. There's 146 00:09:38,400 --> 00:09:42,800 S3: a lot of, um, different talks about our 401 k, 147 00:09:43,760 --> 00:09:45,400 S3: so I just want to know if you have any 148 00:09:45,559 --> 00:09:50,000 S3: ideas of different investments or how to, you know, stay 149 00:09:50,000 --> 00:09:50,880 S3: on top of that. 150 00:09:51,400 --> 00:09:55,470 S1: Yes. Very good. Uh, this is not uncommon. I'm sorry. 151 00:09:55,510 --> 00:09:56,030 S1: Go ahead. 152 00:09:56,429 --> 00:09:58,589 S3: We don't have Social Security, you know. Not anymore. 153 00:09:58,630 --> 00:10:02,750 S1: Okay. All right. Um, and let's talk about that. Are 154 00:10:02,750 --> 00:10:05,150 S1: you not going to be eligible for Social Security? 155 00:10:06,270 --> 00:10:09,710 S3: Well, only my first employer. I did Social Security, but 156 00:10:09,710 --> 00:10:11,030 S3: now it's only for one. 157 00:10:11,750 --> 00:10:13,070 S1: Okay, well. Keep it. 158 00:10:13,790 --> 00:10:14,270 S3: Not enough. 159 00:10:14,309 --> 00:10:18,630 S1: Okay. All right, so as long as you paid in ten, uh, 160 00:10:18,750 --> 00:10:23,630 S1: you know, years or 40 quarters through your FICA taxes, 161 00:10:23,630 --> 00:10:27,590 S1: which would be held, withheld automatically. If you're a W-2 employee, 162 00:10:27,790 --> 00:10:30,589 S1: you'll have access to Social Security. It's not something that 163 00:10:30,590 --> 00:10:34,750 S1: your employer, uh, grants you, unless for some reason, you 164 00:10:34,750 --> 00:10:38,510 S1: weren't paying into Social Security because, you know, you had 165 00:10:38,550 --> 00:10:41,510 S1: a certain job where you were able to opt out, uh, 166 00:10:41,510 --> 00:10:44,030 S1: or it was replaced with a pension of some sort. 167 00:10:44,190 --> 00:10:47,630 S1: But do you know whether you'll have at least 40 168 00:10:47,670 --> 00:10:50,270 S1: quarters of FICA taxes paid in? 169 00:10:52,070 --> 00:10:55,469 S3: Yeah. I did not work for an employer more than 170 00:10:55,470 --> 00:10:58,470 S3: ten years and I already qualified for the 40 points. 171 00:10:58,470 --> 00:10:59,910 S3: But like I said, you know, when they send you 172 00:10:59,910 --> 00:11:00,870 S3: that yearly. 173 00:11:01,590 --> 00:11:02,150 S1: Yes. 174 00:11:02,550 --> 00:11:05,429 S3: Abbreviation. How much? It's not going to be enough to survive. 175 00:11:05,470 --> 00:11:08,030 S1: Of course I got it. Yes. And it was only 176 00:11:08,030 --> 00:11:12,030 S1: intended to cover about 30 to 40% of your pre-retirement income. 177 00:11:12,030 --> 00:11:14,390 S1: So that's where what used to be a pension, you know, 178 00:11:14,470 --> 00:11:16,270 S1: they'd give you a gold watch and a check for 179 00:11:16,270 --> 00:11:20,590 S1: life that was replaced with 401 s, which, you know, 180 00:11:20,630 --> 00:11:24,230 S1: puts the onus on you and me, the worker, to save. 181 00:11:24,270 --> 00:11:28,110 S1: Now there are tax advantages, but through salary deferral, we 182 00:11:28,110 --> 00:11:31,990 S1: have to commit our own funds. Um, does your current 183 00:11:31,990 --> 00:11:34,990 S1: employer match your contributions in any way? 184 00:11:36,590 --> 00:11:39,150 S3: Yes they do, they match it. But sometimes by the 185 00:11:39,150 --> 00:11:42,030 S3: end of the year, you're always losing. Like, you know, 186 00:11:42,070 --> 00:11:44,710 S3: for a while it does increase. And then all of 187 00:11:44,710 --> 00:11:49,830 S3: a sudden you see lost. So I want to make sure. 188 00:11:50,340 --> 00:11:52,179 S3: How do I get it? You know, to keep it 189 00:11:52,179 --> 00:11:52,940 S3: steady also. 190 00:11:53,380 --> 00:11:55,180 S1: Yeah. Very good. And that's going to come down to 191 00:11:55,220 --> 00:11:58,140 S1: the investment selections you make within the plan based on 192 00:11:58,179 --> 00:12:01,100 S1: that menu of options. The market has done well. So 193 00:12:01,100 --> 00:12:05,140 S1: your portfolio, your 401 K should have done well as well. 194 00:12:05,340 --> 00:12:07,580 S1: But it is going to come down to the individual 195 00:12:07,580 --> 00:12:10,700 S1: investments that you choose. So a couple of thoughts here. 196 00:12:10,940 --> 00:12:15,540 S1: Um in terms of the the path forward, um, that 197 00:12:15,580 --> 00:12:19,420 S1: each company takes, uh, as your plan moves into that 198 00:12:19,420 --> 00:12:24,620 S1: new 401 K, what normally happens is the balance transfers 199 00:12:24,780 --> 00:12:29,420 S1: into the new employer's plan. Your investment menu may change. 200 00:12:29,420 --> 00:12:32,579 S1: So that would give you new fund options and in 201 00:12:32,580 --> 00:12:36,900 S1: some cases new matching rules. And then you'll choose the 202 00:12:36,900 --> 00:12:40,500 S1: investments from the new lineup. Uh, so you may see 203 00:12:40,540 --> 00:12:44,540 S1: new index funds or a different fee structure or new 204 00:12:44,580 --> 00:12:47,340 S1: what are called target date funds, which is the simplest 205 00:12:47,340 --> 00:12:51,969 S1: approach where you just essentially select a target date fund 206 00:12:52,250 --> 00:12:56,530 S1: with the date, uh, equal to when you expect to retire, 207 00:12:56,690 --> 00:12:59,569 S1: and then it will automatically get more conservative as you 208 00:12:59,570 --> 00:13:02,730 S1: get closer and closer to that retirement date. So let's 209 00:13:02,730 --> 00:13:05,530 S1: say you were planning to retire ten years from now 210 00:13:05,570 --> 00:13:10,010 S1: and 2045, let's call it. You would pick a 2045 211 00:13:10,050 --> 00:13:13,970 S1: target date fund, and it would all automatically build the 212 00:13:13,970 --> 00:13:17,970 S1: the investment mix around somebody that's ten years out from retirement, 213 00:13:17,970 --> 00:13:20,890 S1: which makes it just really simple. And you don't have 214 00:13:20,890 --> 00:13:23,569 S1: to go in and change it. It'll automatically each year 215 00:13:23,770 --> 00:13:26,890 S1: get a little bit more conservative. Um, so I think, 216 00:13:26,929 --> 00:13:29,810 S1: you know, that's key. Now in some cases they let 217 00:13:29,850 --> 00:13:34,929 S1: both plans stay separate, at least temporarily, where your investments 218 00:13:34,929 --> 00:13:38,050 S1: in your current 401 K stay the same. And then 219 00:13:38,050 --> 00:13:41,570 S1: they later offer you what's called a transfer window. And 220 00:13:41,570 --> 00:13:44,610 S1: then at some point usually the old plan is terminated. 221 00:13:44,610 --> 00:13:47,210 S1: So I think you need to get some clarity around 222 00:13:47,370 --> 00:13:51,199 S1: what options you have, and then either connect with somebody 223 00:13:51,200 --> 00:13:55,200 S1: from the plan administrator to review the options with you, 224 00:13:55,400 --> 00:13:58,800 S1: and help you determine the right mix of investments based 225 00:13:58,800 --> 00:14:01,520 S1: on your age and risk tolerance. You know, according to 226 00:14:01,559 --> 00:14:04,560 S1: that menu of options you have now, and perhaps the 227 00:14:04,559 --> 00:14:07,920 S1: new menu that's going to become available in the new plan. 228 00:14:08,320 --> 00:14:10,480 S1: If you don't have that or you don't feel comfortable 229 00:14:10,480 --> 00:14:13,400 S1: with that option, you could also connect with a certified 230 00:14:13,400 --> 00:14:18,880 S1: Kingdom advisor there in California. Just go to find a comm. 231 00:14:19,760 --> 00:14:22,280 S1: These are men and women who share your values and 232 00:14:22,280 --> 00:14:26,920 S1: are professionally trained as advisors. Again, it's find a comm. 233 00:14:26,920 --> 00:14:38,080 S1: We'll be right back. Thanks for joining us today on 234 00:14:38,080 --> 00:14:40,960 S1: Faith and finance live here on Moody Radio. I'm Rob West. 235 00:14:40,960 --> 00:14:43,240 S1: We're taking your calls and questions. If you've got a 236 00:14:43,240 --> 00:14:45,840 S1: question we'd love to hear from you. Call right now. 237 00:14:45,840 --> 00:14:52,790 S1: 800 525 7000. Again, that's 800 525 7000. Whether you're 238 00:14:52,790 --> 00:14:55,910 S1: thinking about paying down some debt you want to give wisely. 239 00:14:56,030 --> 00:14:59,790 S1: Perhaps it's preparing the next steward, or choosing whether a 240 00:14:59,830 --> 00:15:02,790 S1: will or a trust is a better option for you. 241 00:15:02,790 --> 00:15:07,750 S1: Any of those questions and more. 800 525 7000. Let's 242 00:15:07,750 --> 00:15:10,070 S1: go back to the phones. We'll head out to Tennessee. Gabriel. 243 00:15:10,070 --> 00:15:10,630 S1: Go ahead. 244 00:15:11,670 --> 00:15:16,830 S4: Yeah. My question to you is I own three properties, 245 00:15:16,830 --> 00:15:21,830 S4: and they were purchased different times and in our lives 246 00:15:21,830 --> 00:15:26,590 S4: with my wife and and the properties that because I 247 00:15:26,590 --> 00:15:29,390 S4: owned them, two of them are rentals and one is 248 00:15:29,430 --> 00:15:35,390 S4: a resident residential property where we live. And, um, because 249 00:15:35,390 --> 00:15:38,870 S4: we own those three properties, and now that we're trying 250 00:15:38,870 --> 00:15:45,030 S4: to buy another property and it the loan, they're telling 251 00:15:45,030 --> 00:15:48,340 S4: us that we we we max out even those two 252 00:15:48,340 --> 00:15:51,620 S4: properties we're getting we're getting some income and they're kind 253 00:15:51,660 --> 00:15:55,820 S4: of paying off the mortgage. Um, but because they kind 254 00:15:55,820 --> 00:16:00,460 S4: of mentioned that because they're not they were not purchased um, 255 00:16:00,500 --> 00:16:06,100 S4: through like LLC, um, it kind of limited us right 256 00:16:06,100 --> 00:16:10,740 S4: now purchasing land or other properties. So what is your 257 00:16:10,740 --> 00:16:14,820 S4: advice on on how can we what can we do 258 00:16:14,820 --> 00:16:20,020 S4: to to maybe getting opportunities or approval to get more 259 00:16:20,180 --> 00:16:22,420 S4: loans to purchase other properties? 260 00:16:22,980 --> 00:16:24,940 S1: Yeah, it's a good question. And this comes up a 261 00:16:24,940 --> 00:16:28,100 S1: lot with real estate investors. Uh, the first thing though 262 00:16:28,100 --> 00:16:29,820 S1: that I would say, and this is really kind of 263 00:16:29,860 --> 00:16:33,380 S1: the big idea that is overriding here, is that moving 264 00:16:33,380 --> 00:16:39,220 S1: properties into an LLC is not mainly about buying more houses. 265 00:16:39,540 --> 00:16:46,930 S1: It's usually about liability protection and organization. So lending limits 266 00:16:46,930 --> 00:16:51,890 S1: typically come from the borrower's personal debt and underwriting, not 267 00:16:51,890 --> 00:16:55,970 S1: simply whether the property sits in a in an LLC. 268 00:16:56,530 --> 00:16:59,410 S1: A lot of people think by having an LLC that 269 00:16:59,410 --> 00:17:04,010 S1: equals more borrowing power, and that's just not simply true. Um, 270 00:17:04,369 --> 00:17:08,250 S1: you know, the the limitation is usually from your own 271 00:17:08,250 --> 00:17:12,810 S1: personal debt to income ratio or the number of financed 272 00:17:12,810 --> 00:17:17,050 S1: properties you have, because Fannie Mae and Freddie Mac have caps, 273 00:17:17,290 --> 00:17:20,129 S1: or because you've gotten to the end of the personal 274 00:17:20,130 --> 00:17:24,410 S1: guarantees they're willing to extend. So even if properties sit 275 00:17:24,410 --> 00:17:27,730 S1: in an LLC, lenders are often still going to look 276 00:17:27,730 --> 00:17:34,490 S1: at you personally unless you move fully into commercial lending. Um, 277 00:17:34,570 --> 00:17:37,850 S1: so it can help with liability to get an LLC, 278 00:17:38,170 --> 00:17:42,010 S1: but it's not generally going to expand your loan capacity 279 00:17:42,010 --> 00:17:44,730 S1: by itself. Does that make sense, though? 280 00:17:45,770 --> 00:17:47,930 S4: Yes. Yes. Okay. Makes sense. 281 00:17:48,210 --> 00:17:50,770 S1: Yeah. So I think that's what you're going to need 282 00:17:50,770 --> 00:17:55,250 S1: to look at next. Um, you know, you you certainly, um, 283 00:17:55,330 --> 00:17:59,730 S1: can keep the titles personally. A lot of people use 284 00:17:59,730 --> 00:18:05,890 S1: an LLC for operations. Um, you know, because it helps to, uh, 285 00:18:05,970 --> 00:18:09,850 S1: transfer some of the liability. Um, and in order to 286 00:18:09,890 --> 00:18:13,130 S1: do that, you'd do a deed transfer. Now, you've got 287 00:18:13,130 --> 00:18:16,490 S1: to be aware, though, that, um, a lot of mortgages 288 00:18:16,490 --> 00:18:20,970 S1: will have a due on sale clause. So that allows 289 00:18:20,970 --> 00:18:25,609 S1: the lender to call the loan due if ownership changes. Now, 290 00:18:25,650 --> 00:18:29,689 S1: many lenders will ignore a transfer into a single member LLC, 291 00:18:29,730 --> 00:18:33,370 S1: which is what you would likely create, but not always. 292 00:18:33,530 --> 00:18:35,450 S1: So you're going to want to talk to your lender 293 00:18:35,450 --> 00:18:40,649 S1: first before doing anything in terms of transferring the property 294 00:18:40,650 --> 00:18:44,280 S1: into an LLC. If you go in that direction, just 295 00:18:44,280 --> 00:18:47,720 S1: to be sure how they're going to respond to that. Um, 296 00:18:47,760 --> 00:18:52,320 S1: it also could mean higher interest rates and there's stricter 297 00:18:52,320 --> 00:18:57,560 S1: underwriting since, you know, they're typically considered commercial loans. There 298 00:18:57,560 --> 00:19:00,600 S1: also could be some additional fees and taxes as well. 299 00:19:00,600 --> 00:19:02,520 S1: So I just want to make sure you get with 300 00:19:02,520 --> 00:19:06,400 S1: the CPA and you talk to your mortgage lender and 301 00:19:06,400 --> 00:19:11,240 S1: understand all the implications. Um, but, uh, you know, moving 302 00:19:11,240 --> 00:19:14,320 S1: in that direction, I think, is a better long term 303 00:19:14,320 --> 00:19:19,000 S1: strategy for you because it's going to allow that liability 304 00:19:19,000 --> 00:19:23,600 S1: protection and allow you to have better organization of the 305 00:19:23,640 --> 00:19:25,880 S1: rental property business that you're running. 306 00:19:26,680 --> 00:19:30,199 S4: Right. And those two properties right now, one of the 307 00:19:30,200 --> 00:19:34,280 S4: things that we we like is that the interest rates 308 00:19:34,280 --> 00:19:37,840 S4: are 3.9 and 4.0. Um, yeah. 309 00:19:39,560 --> 00:19:42,720 S1: Which are phenomenal. Yeah. You're not going to get anywhere 310 00:19:42,720 --> 00:19:45,550 S1: close to that now. So I think you're probably going 311 00:19:45,590 --> 00:19:47,870 S1: to want to hang on to those as long as 312 00:19:47,869 --> 00:19:52,310 S1: you can. Um, because those rates are certainly going up 313 00:19:52,310 --> 00:19:55,950 S1: no matter what change you make, unless the lender is 314 00:19:55,950 --> 00:19:58,790 S1: going to allow you to just continue on with the 315 00:19:58,790 --> 00:20:03,310 S1: current mortgage, even though the ownership structure is going to change. 316 00:20:03,310 --> 00:20:05,230 S1: But I wouldn't risk that. That's why you'd want to 317 00:20:05,230 --> 00:20:08,110 S1: have a pretty lengthy conversation with them and and be 318 00:20:08,109 --> 00:20:11,230 S1: assured that you can continue with that mortgage even if 319 00:20:11,230 --> 00:20:14,270 S1: you move into the LLC. But I just want you 320 00:20:14,270 --> 00:20:17,030 S1: to consider the fact that it's probably not going to 321 00:20:17,070 --> 00:20:20,710 S1: open up more borrowing power. It could just simply be 322 00:20:20,710 --> 00:20:24,390 S1: because the lenders are looking at you as really the 323 00:20:24,390 --> 00:20:28,190 S1: personal guarantee for these, um, that you've gotten to the 324 00:20:28,190 --> 00:20:31,389 S1: end of what they're comfortable extending to you. You know, 325 00:20:31,430 --> 00:20:35,030 S1: until we move more into a commercial loan situation. So 326 00:20:35,430 --> 00:20:37,830 S1: I'd probably ride these out as long as you can. 327 00:20:37,869 --> 00:20:40,550 S1: Maybe you try to focus on, you know, taking all 328 00:20:40,590 --> 00:20:43,699 S1: that rental income that's being thrown off, and try to 329 00:20:43,700 --> 00:20:46,699 S1: get one of those paid off, uh, as quick as 330 00:20:46,700 --> 00:20:49,900 S1: you can. And then that might open up the possibility 331 00:20:49,900 --> 00:20:52,939 S1: of acquiring an additional property. I'd I'd certainly be more 332 00:20:52,940 --> 00:20:56,020 S1: comfortable with that approach as well. So, Gabriel, I hope 333 00:20:56,020 --> 00:20:57,780 S1: that gives you a few things to think about. We 334 00:20:57,780 --> 00:21:01,900 S1: appreciate you being on the program today. Call anytime. Well, folks, 335 00:21:01,900 --> 00:21:03,780 S1: we're going to take a quick break. We come back, 336 00:21:03,780 --> 00:21:05,980 S1: we're going to head to Illinois and talk to Lisa. 337 00:21:05,980 --> 00:21:12,060 S1: Perhaps your question as well. Call right now 800 525 7000. 338 00:21:12,100 --> 00:21:16,899 S1: That's 800 525 7000. We'll be right back on faith 339 00:21:16,900 --> 00:21:41,380 S1: and finance live. Stick around. Thanks for joining us today 340 00:21:41,450 --> 00:21:43,810 S1: on Faith and finance Live here on Moody Radio. I'm 341 00:21:43,810 --> 00:21:46,129 S1: Rob West. We're taking your calls and questions. We've got 342 00:21:46,130 --> 00:21:48,250 S1: a few lines open. If you have a question today, 343 00:21:48,250 --> 00:21:52,530 S1: call right now 800 525 7000. Bob Dole is going 344 00:21:52,530 --> 00:21:54,690 S1: to stop by in the next segment. Bob's our go 345 00:21:54,730 --> 00:21:57,729 S1: to guy on the markets a lot going on in 346 00:21:57,730 --> 00:22:03,130 S1: the markets today. The Dow Jones dropping 800 points on 347 00:22:03,170 --> 00:22:07,810 S1: AI disruption fears also as tariffs are weighing on the 348 00:22:07,810 --> 00:22:11,290 S1: markets yet again in the wake of the Supreme Court ruling. 349 00:22:11,290 --> 00:22:17,770 S1: And then the president's subsequent announcement about a 15% tariff globally, 350 00:22:18,210 --> 00:22:20,370 S1: a lot of that weighing on the markets as they 351 00:22:20,369 --> 00:22:23,530 S1: process the implications of all of that, all of that 352 00:22:23,530 --> 00:22:27,170 S1: has caused folks to rush into treasuries in the bond 353 00:22:27,170 --> 00:22:31,010 S1: market that's caused yields to drop, and that has pushed 354 00:22:31,050 --> 00:22:35,570 S1: mortgage rates below 6% for the first time. That's the 355 00:22:35,570 --> 00:22:41,960 S1: lowest level since 2022. We're down at To 5.99, so 356 00:22:41,960 --> 00:22:46,159 S1: a five handle on the 30 year fixed rate mortgage. Uh, 357 00:22:46,160 --> 00:22:51,320 S1: we're seeing mortgage applications at about a 130% of where 358 00:22:51,320 --> 00:22:55,680 S1: they were a year ago. So clearly up. And, um, 359 00:22:55,760 --> 00:23:00,240 S1: this visit to the high fives is more sustainable, uh, 360 00:23:00,280 --> 00:23:04,040 S1: on paper. And we'll certainly see, uh, what the implications 361 00:23:04,040 --> 00:23:06,840 S1: are of this, but welcome news for borrowers who've been 362 00:23:06,840 --> 00:23:09,320 S1: on the sideline, uh, kind of pushed out of the 363 00:23:09,320 --> 00:23:13,879 S1: housing market just because the affordability issue was so challenging. But, uh, 364 00:23:13,880 --> 00:23:16,600 S1: the market selling off today, we'll get Bob Dole's take 365 00:23:16,600 --> 00:23:19,520 S1: on all of that in the next segment. In the meantime, 366 00:23:19,560 --> 00:23:21,760 S1: taking your calls and questions, let's go right back to 367 00:23:21,800 --> 00:23:25,120 S1: the phones. Uh, out to Illinois. Lisa, go ahead. 368 00:23:26,720 --> 00:23:31,080 S5: Uh, yes. Hi. Um, I was just calling, um, in 369 00:23:31,080 --> 00:23:35,240 S5: reference to a gentleman that's 86 years old, and he 370 00:23:35,240 --> 00:23:41,830 S5: was told, um, probably years ago that he couldn't get 371 00:23:41,830 --> 00:23:46,710 S5: Social Security, and he worked for a company for years 372 00:23:46,710 --> 00:23:51,590 S5: and had, you know, a pension from them. And I 373 00:23:51,590 --> 00:23:54,150 S5: don't think that's true. And I just wanted your take 374 00:23:54,150 --> 00:23:54,830 S5: on that. 375 00:23:55,390 --> 00:23:59,310 S1: Hmm. Yeah. Uh, well, yeah. Let me just be clear. 376 00:23:59,310 --> 00:24:04,629 S1: So having a pension does not automatically disqualify someone from 377 00:24:04,630 --> 00:24:10,070 S1: Social Security. However, there are a few situations where benefits 378 00:24:10,310 --> 00:24:15,390 S1: can be reduced or sometimes are not payable. Uh, so 379 00:24:15,430 --> 00:24:18,470 S1: when someone with a pension might be told they can't 380 00:24:18,470 --> 00:24:23,550 S1: get Social Security, that would be related to, uh, whether 381 00:24:23,550 --> 00:24:27,790 S1: or not Social Security taxes were paid. So if someone 382 00:24:27,790 --> 00:24:32,670 S1: worked in a job that did not pay into Social Security, 383 00:24:33,150 --> 00:24:36,109 S1: then that would mean that there was no Social Security 384 00:24:36,109 --> 00:24:41,180 S1: payroll taxes taken out because, you know, they were in 385 00:24:41,180 --> 00:24:46,180 S1: a non-covered employment. So certain government jobs or railroad systems 386 00:24:46,180 --> 00:24:51,820 S1: or some older corporate pension structures resulted in no social 387 00:24:51,820 --> 00:24:55,419 S1: security taxes being paid or if Social Security taxes were 388 00:24:55,420 --> 00:24:59,500 S1: not paid long enough. So he's got to have what's 389 00:24:59,500 --> 00:25:02,580 S1: called 40 credits, and you get a credit for every 390 00:25:02,580 --> 00:25:06,220 S1: quarter that you pay in to through FICA taxes. So 391 00:25:06,220 --> 00:25:09,700 S1: that would be basically ten years. Um, if you don't 392 00:25:09,700 --> 00:25:15,540 S1: have ten years where you paid into Social Security, then 393 00:25:15,580 --> 00:25:18,179 S1: you would not be able to get Social Security benefits. 394 00:25:18,180 --> 00:25:21,699 S1: But it's not the pension that's blocking the benefits. It's 395 00:25:21,700 --> 00:25:25,580 S1: simply that you didn't pay in to Social Security long enough. 396 00:25:25,980 --> 00:25:30,580 S1: The other two situations are something called windfall elimination, which 397 00:25:30,580 --> 00:25:33,740 S1: is where, um, you know, you have a lower Social 398 00:25:33,740 --> 00:25:38,060 S1: Security benefit calculation because of a certain type of pension 399 00:25:38,340 --> 00:25:45,260 S1: or government pension offset. However, those were repealed. And so, um, 400 00:25:45,260 --> 00:25:48,899 S1: you know, because of the Social Security Fairness Act, which 401 00:25:48,900 --> 00:25:53,580 S1: went into law in January of 2025, that windfall elimination 402 00:25:53,580 --> 00:25:57,699 S1: and government pension offset, uh, no longer apply. And a 403 00:25:57,700 --> 00:26:02,900 S1: lot of folks are getting automatic, uh, increases in their 404 00:26:02,900 --> 00:26:07,540 S1: Social Security benefits and even retroactive payments as a result 405 00:26:07,540 --> 00:26:11,620 S1: of previously being subject to one of these, um, and 406 00:26:11,619 --> 00:26:14,660 S1: now those no longer being in effect. So I think 407 00:26:14,700 --> 00:26:18,340 S1: it ultimately comes down to just whether your friend ever 408 00:26:18,340 --> 00:26:22,139 S1: paid into Social Security, and if so, did he pay 409 00:26:22,140 --> 00:26:25,100 S1: in long enough? Meaning did he have ten years of 410 00:26:25,100 --> 00:26:28,540 S1: FICA taxes withheld? And the best way to determine that 411 00:26:28,540 --> 00:26:33,500 S1: is to go to my gov and log in online, 412 00:26:33,500 --> 00:26:36,700 S1: or have somebody help him do that. Maybe you, um, 413 00:26:36,780 --> 00:26:39,690 S1: and just pull up his benefit statement and find out 414 00:26:39,690 --> 00:26:43,050 S1: exactly what the situation is. Does that make sense? 415 00:26:44,250 --> 00:26:51,010 S5: Um, yeah. And that was my. S s a.gov. 416 00:26:51,210 --> 00:26:56,130 S1: Yeah. SSA standing for Social Security Administration. My SSA gov. 417 00:26:57,090 --> 00:27:02,050 S5: Okay. Okay. Thank you. So you're saying that this um, 418 00:27:02,530 --> 00:27:06,050 S5: this uh, if it was a government because a lot 419 00:27:06,050 --> 00:27:11,010 S5: of well, I know cat does a lot of government work, 420 00:27:11,010 --> 00:27:16,010 S5: but I don't know who who paid him. So if 421 00:27:16,010 --> 00:27:22,570 S5: it was that type of thing, sometimes it can be retroactive. 422 00:27:22,570 --> 00:27:25,730 S5: So it can go back to where he was. He 423 00:27:25,730 --> 00:27:26,730 S5: was 65. 424 00:27:27,730 --> 00:27:31,250 S1: Well, it really just all depends upon did he have 425 00:27:31,250 --> 00:27:35,010 S1: enough qualifying payments into Social Security? So if he was 426 00:27:35,010 --> 00:27:40,359 S1: a W2 employee. What happens is, as that money is 427 00:27:40,359 --> 00:27:44,320 S1: paid to him, the, um, you know, the employer would 428 00:27:44,320 --> 00:27:47,480 S1: have their portion of Social Security, half of it, and 429 00:27:47,480 --> 00:27:50,320 S1: then he would have his portion. And generally that comes 430 00:27:50,320 --> 00:27:54,000 S1: out automatically and gets paid into Social Security. As a 431 00:27:54,000 --> 00:27:56,800 S1: W2 employee if you're self-employed, which he was not because 432 00:27:56,800 --> 00:27:59,520 S1: he worked for caterpillar, then you would pay the whole 433 00:27:59,520 --> 00:28:05,119 S1: Social Security FICA taxes on your own. That 15 plus percent. Um, 434 00:28:05,480 --> 00:28:09,200 S1: but the key here would be, you know, did he 435 00:28:09,240 --> 00:28:13,000 S1: have those taxes withheld based on the type of pension 436 00:28:13,000 --> 00:28:15,840 S1: that was being offered to him? And that's where the 437 00:28:15,840 --> 00:28:20,720 S1: Social Security Administration pulling that benefit statement, um, would be 438 00:28:20,720 --> 00:28:24,040 S1: the place to find out exactly how many credits he 439 00:28:24,040 --> 00:28:27,880 S1: has by way of Social Security taxes being paid in. Uh, 440 00:28:27,880 --> 00:28:30,480 S1: let me also mention it looks like they changed that URL. 441 00:28:30,480 --> 00:28:35,160 S1: So if he just goes to ssa.gov and then clicks 442 00:28:35,270 --> 00:28:38,390 S1: on my account. That would be the place to go. 443 00:28:38,430 --> 00:28:40,750 S1: SSA gov okay. 444 00:28:40,950 --> 00:28:47,390 S5: SSA dot g o v. Um, you spawned another question 445 00:28:47,390 --> 00:28:54,910 S5: for me. Um, if the employer paid their part of 446 00:28:54,910 --> 00:28:59,870 S5: the Social Security and he paid his part and maybe 447 00:28:59,910 --> 00:29:03,590 S5: he paid lower because he didn't like, he wanted to 448 00:29:03,590 --> 00:29:07,110 S5: keep part of the money that he might have. I 449 00:29:07,110 --> 00:29:10,070 S5: don't know if he even has me with anything. 450 00:29:10,750 --> 00:29:13,550 S1: No. I mean, he would have been, uh, you know, 451 00:29:13,630 --> 00:29:16,469 S1: the IRS would have reached back out to him. Um, 452 00:29:17,190 --> 00:29:19,430 S1: you know, if he. Because generally the way that only 453 00:29:19,470 --> 00:29:23,110 S1: the only the way that happens is, um, you know, 454 00:29:23,150 --> 00:29:28,390 S1: when you're self-employed, but otherwise, uh, you know, both sides 455 00:29:28,430 --> 00:29:32,630 S1: pay in and, uh, and, you know, that's reported to 456 00:29:32,670 --> 00:29:36,060 S1: the IRS Arrests and it comes out of every paycheck. 457 00:29:36,060 --> 00:29:38,300 S1: So that would not be the case. The only the 458 00:29:38,300 --> 00:29:41,900 S1: only way that this would be possible is if he 459 00:29:41,900 --> 00:29:47,460 S1: was in an exempt situation where because of the pension, 460 00:29:47,500 --> 00:29:50,500 S1: there was not, you know, taxes paid into Social Security. 461 00:29:50,500 --> 00:29:53,340 S1: And if that's the case, then he wouldn't get the benefit. 462 00:29:53,340 --> 00:29:57,500 S1: So he just needs to go into Ssa.gov find out 463 00:29:57,540 --> 00:30:00,700 S1: on his benefit statement, exactly how many, how many credits 464 00:30:00,700 --> 00:30:03,700 S1: he has, and then that will tell him what he's 465 00:30:03,700 --> 00:30:07,860 S1: entitled to, if anything. So I think that's the next step. Lisa, 466 00:30:07,860 --> 00:30:09,940 S1: I appreciate your call today. If we can help further, 467 00:30:09,980 --> 00:30:12,620 S1: don't hesitate to reach out. All right, a quick break 468 00:30:12,620 --> 00:30:15,340 S1: and then back with Bob Dole and more of your 469 00:30:15,340 --> 00:30:18,580 S1: questions as well. Straight around the corner. This is faith 470 00:30:18,580 --> 00:30:21,780 S1: and finance live. I'm Rob West and we, uh, still 471 00:30:21,780 --> 00:30:40,450 S1: have quite a bit more to come. Don't go anywhere. Well, 472 00:30:40,450 --> 00:30:44,730 S1: the market's selling off today. AI still front and center 473 00:30:44,730 --> 00:30:48,610 S1: as well as some tariff woes as the market digests 474 00:30:48,610 --> 00:30:52,890 S1: the Supreme Court's action and the following, uh, announcement of 475 00:30:52,890 --> 00:30:56,370 S1: a new global tariff by the Trump administration. Bob Dole 476 00:30:56,370 --> 00:30:58,650 S1: is here to make sense of it all. Bob. Uh, 477 00:30:58,730 --> 00:31:00,530 S1: rough start to the trading week. What do you make 478 00:31:00,570 --> 00:31:00,930 S1: of it? 479 00:31:01,810 --> 00:31:07,170 S6: Uh, certainly was, um, Rob, uh, the AI and tariff issues, um, 480 00:31:07,250 --> 00:31:11,690 S6: one more time playing out IBM, uh, was the leader 481 00:31:11,690 --> 00:31:16,210 S6: on the downside affected the Dow was down 13%. Uh, 482 00:31:16,210 --> 00:31:18,650 S6: but a lot of software stocks were down. Some of 483 00:31:18,650 --> 00:31:22,850 S6: the financials got hit hard. All concerns about is AI 484 00:31:22,890 --> 00:31:27,810 S6: going to replace or dampen or maim um, some of 485 00:31:27,810 --> 00:31:32,450 S6: these areas. And so people were uh, selling now asking 486 00:31:32,520 --> 00:31:33,320 S6: questions later. 487 00:31:34,040 --> 00:31:36,960 S1: Bob, is it just this idea that maybe they've gotten 488 00:31:36,960 --> 00:31:40,520 S1: ahead of themselves or is there some earnings concerns? I mean, 489 00:31:40,560 --> 00:31:42,680 S1: what is driving this on the AI side? 490 00:31:43,160 --> 00:31:47,000 S6: Yeah, it's more the concern about what might happen. Um, 491 00:31:47,080 --> 00:31:51,160 S6: some reports came out, some research houses, uh, asking the 492 00:31:51,160 --> 00:31:56,960 S6: question will AI damage this area, will replace that area, etc.. 493 00:31:57,000 --> 00:32:00,880 S6: No earnings concerns yet. In fact, the earnings continue to 494 00:32:00,880 --> 00:32:03,320 S6: come through reasonably good as we've been talking all the 495 00:32:03,320 --> 00:32:03,880 S6: way along. 496 00:32:04,400 --> 00:32:08,320 S1: Yeah, Bob, obviously last week we were hit with some 497 00:32:08,320 --> 00:32:11,840 S1: GDP numbers that were really disappointing. What did you make 498 00:32:11,880 --> 00:32:14,440 S1: of that. And can we really just chalk that up 499 00:32:14,440 --> 00:32:17,200 S1: to uh, the government shutdown or do you believe there's 500 00:32:17,200 --> 00:32:18,160 S1: a bigger issue there? 501 00:32:19,000 --> 00:32:20,880 S6: Uh, look, you know, we think the economy has been 502 00:32:20,880 --> 00:32:25,000 S6: slowing somewhat, uh, but it's clear in the numbers reported 503 00:32:25,000 --> 00:32:28,440 S6: with the preliminary fourth quarter GDP. It had a lot 504 00:32:28,440 --> 00:32:31,880 S6: to do with, as you pointed out, the government shutdown. 505 00:32:32,200 --> 00:32:36,480 S6: Most estimates have the government taking nearly a percent away 506 00:32:36,520 --> 00:32:41,959 S6: from fourth quarter growth. So that's that's that's a big dampener. Uh, 507 00:32:41,960 --> 00:32:45,479 S6: consumer spending was reasonably good. And that's the one we 508 00:32:45,480 --> 00:32:46,760 S6: have to watch most carefully. 509 00:32:47,480 --> 00:32:51,320 S1: Bob. Uh, mortgage rates getting a lot of attention today as, uh, 510 00:32:51,320 --> 00:32:55,960 S1: folks moved, uh, into the bond market, Treasury yields dropping. And, uh, 511 00:32:56,000 --> 00:32:58,760 S1: we now have a five handle on 30 year rates. Um, 512 00:32:58,760 --> 00:33:00,960 S1: how significant of that is that? Do you think that 513 00:33:00,960 --> 00:33:01,760 S1: will continue? 514 00:33:02,400 --> 00:33:06,920 S6: Yeah. So certainly notable. Um, uh, and a great development 515 00:33:06,920 --> 00:33:10,160 S6: for anybody who needs or wants a mortgage. Uh, we 516 00:33:10,200 --> 00:33:12,680 S6: probably are going to see some more of that, particularly 517 00:33:12,680 --> 00:33:17,800 S6: if the economic slowdown thesis is accurate. Now, it's not just, uh, 518 00:33:18,160 --> 00:33:21,800 S6: economic growth, but also the inflation side, uh, that affects 519 00:33:21,800 --> 00:33:25,120 S6: interest rates and mortgage rates. And, you know, last week 520 00:33:25,120 --> 00:33:30,320 S6: we got the Fed's favorite inflation, uh, indicator. And that's 521 00:33:30,320 --> 00:33:36,070 S6: the personal consumption number. And that inflation number was was stubborn. 522 00:33:36,070 --> 00:33:39,470 S6: It was close to three. One more time. And that's 523 00:33:39,470 --> 00:33:42,030 S6: just not moving down toward two as they would like. 524 00:33:42,030 --> 00:33:44,750 S6: So um mortgage rates can come down some more. But 525 00:33:44,790 --> 00:33:47,229 S6: if inflation stays at three they won't come down a lot. 526 00:33:47,550 --> 00:33:52,110 S1: Yeah. Uh, Bob, what are the implications, uh, in your view, 527 00:33:52,110 --> 00:33:56,110 S1: to the decision last week from the Supreme Court? And 528 00:33:56,430 --> 00:33:59,270 S1: is it really kind of a non-issue if if the 529 00:33:59,310 --> 00:34:01,990 S1: Trump administration is going to find another lever to pull 530 00:34:02,030 --> 00:34:04,550 S1: to essentially maintain the status quo? 531 00:34:05,190 --> 00:34:08,509 S6: It's largely the latter, Rob. That is to say, um, 532 00:34:08,510 --> 00:34:12,069 S6: while the market was down today, the market certainly anticipated 533 00:34:12,070 --> 00:34:17,509 S6: that the Supreme Court would probably rule against the Trump tariffs. 534 00:34:18,190 --> 00:34:20,989 S6: But on the heels of that, that the Trump administration 535 00:34:20,989 --> 00:34:25,549 S6: had other measures, they could use other regulations to be 536 00:34:25,590 --> 00:34:28,310 S6: able to achieve that. And you see, they came out, um, 537 00:34:28,350 --> 00:34:32,980 S6: almost within the hour with exercising those things. So, uh, 538 00:34:33,060 --> 00:34:36,620 S6: it it'll it'll be watched, it'll be criticized. It just 539 00:34:36,620 --> 00:34:40,180 S6: creates uncertainty. And markets hate uncertainty. And that's that's part 540 00:34:40,180 --> 00:34:41,060 S6: of the story today. 541 00:34:41,460 --> 00:34:44,739 S1: Yeah. Very good. All right Bob. Well, we appreciate your, uh, 542 00:34:44,739 --> 00:34:48,100 S1: your time as always. Uh, keep your seat belt on 543 00:34:48,100 --> 00:34:50,580 S1: this week, and, uh, we'll see what the week brings. 544 00:34:51,260 --> 00:34:53,580 S6: Fast and smartly. You're absolutely right. 545 00:34:54,620 --> 00:34:58,100 S1: God bless you, my friend. That's Bob Dahl. He's CEO 546 00:34:58,100 --> 00:35:01,060 S1: and CIO at Crossmark Global Investments. You can learn more 547 00:35:01,100 --> 00:35:04,819 S1: at Crossmark global. Com. All right. Uh, let's head to, uh, 548 00:35:04,820 --> 00:35:07,660 S1: back to the phones here. We'll head out to, uh, Illinois. Nova, 549 00:35:07,660 --> 00:35:08,460 S1: thanks for calling. 550 00:35:08,820 --> 00:35:11,460 S7: Yeah. Thank you. I actually, uh, spoken to you before 551 00:35:11,500 --> 00:35:16,780 S7: in 2022 about struggling financially before my back surgeries. Uh, 552 00:35:16,780 --> 00:35:18,700 S7: because I don't have any family. And I reached out 553 00:35:18,700 --> 00:35:22,739 S7: to all of them. And you ended up getting me connected. Uh, 554 00:35:22,739 --> 00:35:26,580 S7: you and Moneywise, uh, to assistance. And I don't know 555 00:35:26,900 --> 00:35:29,770 S7: where I would be today without that assistance before those 556 00:35:29,770 --> 00:35:32,009 S7: back surgeries. So thank you for that. 557 00:35:32,050 --> 00:35:36,730 S1: Incredible. Yeah, so did listener. I'm trying I believe I remember, uh, 558 00:35:36,730 --> 00:35:40,850 S1: your your call uh, several years ago did listeners reach 559 00:35:40,850 --> 00:35:43,250 S1: out and end up helping assist you? 560 00:35:43,290 --> 00:35:46,850 S7: They did. Yes. I actually spoke with a lovely charity 561 00:35:46,850 --> 00:35:50,290 S7: that got in touch with me and provided more than 562 00:35:50,290 --> 00:35:54,290 S7: I could have even imagined in, in assistance to make 563 00:35:54,330 --> 00:35:56,730 S7: sure that I didn't become homeless and that I could 564 00:35:56,730 --> 00:35:59,850 S7: recover from my surgeries without having to worry. So. 565 00:36:00,370 --> 00:36:03,330 S1: Nova, that is amazing. Yeah, that would have been helping hands. 566 00:36:03,330 --> 00:36:06,610 S1: And now that you say that, I remember exactly, uh, 567 00:36:06,610 --> 00:36:09,649 S1: the situation. So I'm so thrilled to hear from you. 568 00:36:09,650 --> 00:36:11,610 S1: So you're doing better health wise. 569 00:36:12,290 --> 00:36:15,730 S7: I, I, you know, I'm in chronic pain, but praise 570 00:36:15,730 --> 00:36:18,690 S7: the Lord that the surgeries have allowed it so that 571 00:36:18,690 --> 00:36:22,370 S7: I can survive, you know, so and praise Michelle at 572 00:36:22,410 --> 00:36:25,730 S7: helping hands because you know, just everything. 573 00:36:25,730 --> 00:36:27,489 S1: But yeah. She's incredible. 574 00:36:27,560 --> 00:36:28,120 S7: Question. 575 00:36:28,160 --> 00:36:29,000 S1: Sure. Go ahead. 576 00:36:29,120 --> 00:36:33,200 S7: Seriously? So. So I'm doing a lot better today. My 577 00:36:33,200 --> 00:36:35,680 S7: question for you today is that I opened an LLC 578 00:36:35,719 --> 00:36:39,280 S7: 3 or 4 years ago, um, as a photography business, 579 00:36:39,280 --> 00:36:41,880 S7: and I never used it. And so I never filed 580 00:36:41,920 --> 00:36:45,799 S7: taxes on it. Um, and so now it's been dissolved 581 00:36:45,800 --> 00:36:50,040 S7: since January, and my focus has been starting my own nonprofit, 582 00:36:50,280 --> 00:36:54,000 S7: which I have successfully done, which is exciting. Um, but 583 00:36:54,000 --> 00:36:56,240 S7: now I just got married and we're hoping to start 584 00:36:56,239 --> 00:37:00,760 S7: some DBAs, but I just discovered my LLCs dissolved because 585 00:37:00,760 --> 00:37:03,480 S7: of the tax situation. So I know it would cost 586 00:37:03,480 --> 00:37:08,520 S7: the $75 filing fees for each year of the taxes 587 00:37:08,520 --> 00:37:11,240 S7: I was supposed to do, and then probably a reinstatement 588 00:37:11,239 --> 00:37:15,680 S7: fee to make the former LLC active. Um, and then 589 00:37:15,680 --> 00:37:18,640 S7: I think that cheaper route would just be to make 590 00:37:18,640 --> 00:37:21,879 S7: a new LLC and do the DBAs under there, but 591 00:37:21,880 --> 00:37:25,760 S7: then I'd lose that length of establishment of my business. 592 00:37:26,280 --> 00:37:30,350 S7: But my question is with my non-profit and the Dba's 593 00:37:30,390 --> 00:37:34,270 S7: under a new LLC, would the dissolved LLC haunt me 594 00:37:34,830 --> 00:37:35,470 S7: at all? 595 00:37:36,030 --> 00:37:39,870 S1: Yeah. So, you know, often when somebody does have an 596 00:37:39,870 --> 00:37:43,870 S1: LLC and they have operated under it and then they, 597 00:37:44,230 --> 00:37:47,830 S1: you know, haven't reported for a while by when it 598 00:37:47,830 --> 00:37:51,790 S1: gets dissolved, uh, if there is something owed, you know, 599 00:37:51,830 --> 00:37:54,190 S1: there was tax returns that were not filed that should 600 00:37:54,190 --> 00:37:57,310 S1: have been just by ignoring it. And starting a new 601 00:37:57,310 --> 00:38:00,189 S1: one doesn't make those go away. And so you need 602 00:38:00,190 --> 00:38:03,390 S1: to get in compliance and then decide, is it better 603 00:38:03,550 --> 00:38:07,150 S1: to just reinstate it and continue or to start something 604 00:38:07,150 --> 00:38:10,790 S1: new because something has materially changed with the business? Um, 605 00:38:10,790 --> 00:38:15,750 S1: but but it doesn't make those, you know, penalties go away. Now, 606 00:38:15,750 --> 00:38:19,110 S1: in your case, because it sounds like you really never 607 00:38:19,110 --> 00:38:24,030 S1: operated anything under that business. Um, you know, that changes 608 00:38:24,030 --> 00:38:28,100 S1: things quite a bit. Uh, and so in most cases, 609 00:38:28,260 --> 00:38:31,100 S1: you know, if you never operated the business, never made 610 00:38:31,100 --> 00:38:35,540 S1: any money, never really used the LLC, then you probably 611 00:38:35,540 --> 00:38:40,779 S1: didn't have a federal tax filing requirement at all. And 612 00:38:40,820 --> 00:38:45,580 S1: the LLC is essentially what's called disregarded for tax purposes. 613 00:38:45,780 --> 00:38:49,060 S1: And so then the state probably just dissolved it for 614 00:38:49,100 --> 00:38:54,060 S1: missing the annual registrations, not because of IRS taxes, although 615 00:38:54,060 --> 00:38:57,219 S1: you'll want to verify that. Um, so in terms of 616 00:38:57,219 --> 00:39:01,700 S1: what to do moving forward, since you never used it, uh, 617 00:39:01,739 --> 00:39:04,700 S1: you know, I think many advisors would lean toward starting 618 00:39:04,700 --> 00:39:09,299 S1: a new LLC if the old one, you know, if 619 00:39:09,300 --> 00:39:13,220 S1: there was nothing really associated with it. Uh, there's no brand, 620 00:39:13,219 --> 00:39:17,260 S1: there's no contracts, there's no ein history. It was never 621 00:39:17,260 --> 00:39:21,900 S1: funded or operational. It's often cheaper and cleaner just to 622 00:39:21,980 --> 00:39:24,540 S1: start a new one. Um, you know, I would think 623 00:39:24,580 --> 00:39:27,660 S1: the only reason you'd want to reinstate it would be 624 00:39:27,660 --> 00:39:31,660 S1: if you wanted the same business name, or the reinstatement 625 00:39:31,660 --> 00:39:37,020 S1: costs were minimal, or there's some legal reason to keep continuity. Otherwise, 626 00:39:37,020 --> 00:39:41,300 S1: there's really no advantage to reviving an unused entity. Um, 627 00:39:41,700 --> 00:39:43,900 S1: so did you ever get an Ein? 628 00:39:45,020 --> 00:39:46,020 S7: I did, yeah. 629 00:39:46,300 --> 00:39:49,060 S1: Okay. And did the IRS go ahead? 630 00:39:49,219 --> 00:39:52,859 S7: I'm sorry. Oh, I actually paid a third party to 631 00:39:52,900 --> 00:39:55,259 S7: set up the LLC because I didn't know it was 632 00:39:55,260 --> 00:39:59,660 S7: so easy to do on your own. Um, so they filed, like, 633 00:40:00,340 --> 00:40:01,900 S7: all this stuff for me. 634 00:40:02,500 --> 00:40:02,900 S1: Okay. 635 00:40:02,940 --> 00:40:04,060 S7: And then that was it. 636 00:40:04,260 --> 00:40:07,220 S1: Did the IRS send any filing notices? 637 00:40:08,380 --> 00:40:08,900 S7: No. 638 00:40:09,420 --> 00:40:13,020 S1: Okay. And you never really operated anything or made any 639 00:40:13,020 --> 00:40:14,660 S1: money under it. Is that right? 640 00:40:15,219 --> 00:40:16,180 S7: Yeah. That's right. 641 00:40:16,500 --> 00:40:20,620 S1: Okay. Um, so in that case, um, you know, I 642 00:40:20,620 --> 00:40:24,890 S1: think what you're facing here is, you know, if you 643 00:40:24,890 --> 00:40:28,490 S1: have an Ein, but never did business, never had any income, 644 00:40:28,530 --> 00:40:32,610 S1: haven't received any IRS filing notices, then it's likely just 645 00:40:32,610 --> 00:40:37,250 S1: a state compliance issue, not a federal tax issue whatsoever. Um, 646 00:40:37,650 --> 00:40:43,370 S1: and so the Ein by itself doesn't create a filing requirement. 647 00:40:43,410 --> 00:40:46,330 S1: What determines the IRS filings is whether or not you 648 00:40:46,330 --> 00:40:50,049 S1: elected an S Corp status. Um, but if there was 649 00:40:50,050 --> 00:40:53,530 S1: no activity, then there usually isn't any kind of separate 650 00:40:53,530 --> 00:40:57,330 S1: federal tax return required. So, you know, I would say, 651 00:40:57,330 --> 00:41:00,890 S1: given what you've said, in many cases, it's cleaner and 652 00:41:00,890 --> 00:41:04,690 S1: even cheaper just to start a brand new LLC instead 653 00:41:04,690 --> 00:41:07,969 S1: of paying any kind of state penalties to revive an 654 00:41:07,969 --> 00:41:08,850 S1: unused one. 655 00:41:09,690 --> 00:41:12,969 S7: Okay. Awesome. Thank you. And then I did have a 656 00:41:12,969 --> 00:41:14,650 S7: second question. If you had time. 657 00:41:14,969 --> 00:41:15,930 S1: Okay, sure. Go ahead. 658 00:41:16,770 --> 00:41:21,450 S7: So I did start a nonprofit, uh, care foundation. And 659 00:41:21,450 --> 00:41:24,360 S7: so it's just getting started. I'm plugged in with a 660 00:41:24,360 --> 00:41:28,799 S7: couple other non-profits in my area for networking purposes, but 661 00:41:28,840 --> 00:41:30,880 S7: I was wondering if you had like, a best route 662 00:41:30,880 --> 00:41:35,400 S7: to raise awareness and seek out grants to support the nonprofit? 663 00:41:36,160 --> 00:41:39,240 S1: Yeah. Uh, what what type of non-profit is it? 664 00:41:40,239 --> 00:41:44,440 S7: So it's called Fairfax Foundation. It'll be providing carefully curated 665 00:41:44,440 --> 00:41:48,359 S7: care packages to the unhoused of the greater Chicago area, 666 00:41:48,360 --> 00:41:51,000 S7: and eventually going to move it down to Tampa, most likely. 667 00:41:51,880 --> 00:41:55,160 S1: Okay. Got it. Um, yeah. You know, I think I 668 00:41:55,160 --> 00:41:58,319 S1: love the fact that you're networking with other non-profits. It 669 00:41:58,320 --> 00:42:01,359 S1: sounds like a great mission. Um, you know, I would 670 00:42:01,360 --> 00:42:04,239 S1: say the next step is to get that 500 1C3 671 00:42:04,280 --> 00:42:06,920 S1: approval letter from the IRS. Make sure you have a 672 00:42:06,920 --> 00:42:11,000 S1: clear mission statement, board of directors, a basic budget, and 673 00:42:11,000 --> 00:42:14,760 S1: an impact plan. Um, and and then I would say, 674 00:42:14,800 --> 00:42:16,880 S1: you know, at that point you could start looking for grants. 675 00:42:16,880 --> 00:42:18,879 S1: Stay on the line. We'll talk a bit more. Faith 676 00:42:18,880 --> 00:42:21,799 S1: and finance lives of partnership between Moody Radio and Faith five. 677 00:42:21,840 --> 00:42:22,520 S1: See you tomorrow.