1 00:00:04,680 --> 00:00:07,600 S1: The following program was pre-recorded so our phone lines are 2 00:00:07,600 --> 00:00:08,440 S1: not open. 3 00:00:08,680 --> 00:00:10,840 S2: We live in a world that pushes us right to 4 00:00:10,880 --> 00:00:15,840 S2: the edge of our time, our capacity, and especially our finances. Hi, 5 00:00:15,840 --> 00:00:19,880 S2: I'm Rob West. Every hour gets scheduled, every dollar gets 6 00:00:19,880 --> 00:00:22,880 S2: spoken for, and before we know it, we're living without 7 00:00:22,880 --> 00:00:27,280 S2: space to breathe. Today we're talking about living with margin. Why? 8 00:00:27,280 --> 00:00:30,360 S2: It's essential for wise stewardship. Then we have some great 9 00:00:30,360 --> 00:00:33,040 S2: calls lined up. But we won't be taking your live 10 00:00:33,040 --> 00:00:36,720 S2: calls today because we're pre-recorded. This is faith and finance. 11 00:00:36,720 --> 00:00:45,080 S2: Live biblical wisdom for your financial decisions. Margin is simply 12 00:00:45,080 --> 00:00:48,600 S2: the cushion between our limits and our load, the space 13 00:00:48,600 --> 00:00:52,080 S2: between what we could do and what we actually do. 14 00:00:52,120 --> 00:00:57,560 S2: And Scripture presents margin as wisdom, not luxury. Proverbs 2120 15 00:00:57,600 --> 00:01:00,430 S2: tells us precious treasure and oil are in a wise 16 00:01:00,430 --> 00:01:04,470 S2: man's dwelling, but a foolish man devours it. In other words, 17 00:01:04,470 --> 00:01:08,750 S2: wise people don't consume everything they have. They leave space. 18 00:01:08,750 --> 00:01:12,550 S2: They build reserves. They plan ahead. The foolish run to 19 00:01:12,590 --> 00:01:16,150 S2: the edges, spending everything as fast as it comes in. 20 00:01:16,350 --> 00:01:19,950 S2: And one of the most beautiful biblical images of margin 21 00:01:19,950 --> 00:01:24,270 S2: comes from the book of Ruth in Leviticus 2322, God 22 00:01:24,270 --> 00:01:27,910 S2: instructs his people not to harvest their fields to the edges. 23 00:01:28,110 --> 00:01:31,310 S2: They were to leave grain behind for the poor, the widow, 24 00:01:31,310 --> 00:01:35,910 S2: and the foreigner. Boaz obeyed that command. He left space. 25 00:01:35,910 --> 00:01:39,670 S2: He didn't maximize every inch of profit. And because of that, 26 00:01:39,670 --> 00:01:44,229 S2: Ruth and Naomi survived. That simple act of obedience set 27 00:01:44,230 --> 00:01:47,510 S2: in motion a story of redemption that led not only 28 00:01:47,510 --> 00:01:50,950 S2: to Ruth's marriage to Boaz, but also to the lineage 29 00:01:50,950 --> 00:01:55,790 S2: of King David and ultimately to Jesus Christ. Margin makes 30 00:01:55,790 --> 00:01:59,420 S2: room for God to work. But maybe the simplest example 31 00:01:59,420 --> 00:02:02,060 S2: of margin is found not in a field, but in 32 00:02:02,060 --> 00:02:05,900 S2: a book. Think about a beautifully designed page. The words 33 00:02:05,900 --> 00:02:09,620 S2: don't run from edge to edge. They don't overwhelm the eye. 34 00:02:09,860 --> 00:02:13,780 S2: They're space around them. Room that allows the page to breathe. 35 00:02:13,980 --> 00:02:18,019 S2: Without that space, the text would feel chaotic, stressful, and 36 00:02:18,060 --> 00:02:22,500 S2: impossible to absorb. Our lives are just like that. When 37 00:02:22,500 --> 00:02:25,540 S2: we fill every minute of our schedule, every dollar of 38 00:02:25,540 --> 00:02:29,700 S2: our budget, every ounce of our emotional energy, life becomes 39 00:02:29,700 --> 00:02:33,740 S2: hard to navigate. We can't think clearly. We can't rest. 40 00:02:33,740 --> 00:02:37,820 S2: We can't respond to God's promptings because we're crowding every 41 00:02:37,820 --> 00:02:41,380 S2: corner of our existence. And that applies to our finances 42 00:02:41,380 --> 00:02:45,260 S2: as well. When we spend everything, we earn even minor 43 00:02:45,260 --> 00:02:48,620 S2: disruptions like a car repair or a medical bill or 44 00:02:48,660 --> 00:02:52,299 S2: a shift in income become crises. But when we build 45 00:02:52,300 --> 00:02:57,180 S2: margin into our finances, those disruptions become manageable. they no 46 00:02:57,180 --> 00:03:00,860 S2: longer derail us. So what does margin actually do in 47 00:03:00,860 --> 00:03:03,660 S2: your life? A lot more than you might think. When 48 00:03:03,660 --> 00:03:07,860 S2: you create space in your finances. Three powerful shifts begin 49 00:03:07,860 --> 00:03:11,860 S2: to happen. Margin creates space for rest. When we're not 50 00:03:11,860 --> 00:03:16,580 S2: bound to every financial obligation we can breathe, we can Sabbath. 51 00:03:16,620 --> 00:03:20,260 S2: We can stop and enjoy God's presence without guilt or pressure. 52 00:03:20,620 --> 00:03:24,900 S2: Margin creates space for faith. When we don't consume every dollar, 53 00:03:24,940 --> 00:03:28,060 S2: we begin to trust that we are not our provider. 54 00:03:28,100 --> 00:03:31,020 S2: God is. And when we leave space, we give him 55 00:03:31,020 --> 00:03:35,140 S2: room to show up. Margin also creates space for generosity. 56 00:03:35,460 --> 00:03:38,060 S2: We can say yes when God prompts us to give. 57 00:03:38,180 --> 00:03:40,620 S2: When we live at the edge of our means, we 58 00:03:40,620 --> 00:03:44,740 S2: lose the capacity to respond to the needs of others. Ultimately, 59 00:03:44,860 --> 00:03:49,420 S2: margin is a spiritual discipline. It's not just about saving money, 60 00:03:49,420 --> 00:03:53,060 S2: it's about creating room for God's provision, God's pace, and 61 00:03:53,060 --> 00:03:56,730 S2: God's purposes in your life. It changes the way you give, 62 00:03:56,770 --> 00:03:59,570 S2: the way you think and the way you live. So 63 00:03:59,570 --> 00:04:02,570 S2: how do we begin creating margin? Well, it starts with 64 00:04:02,570 --> 00:04:06,770 S2: one foundational step. Spend less than you earn. That's simple 65 00:04:06,770 --> 00:04:11,250 S2: to understand, but very challenging to practice. It means building 66 00:04:11,250 --> 00:04:14,410 S2: a budget with breathing room. It might require saying no 67 00:04:14,410 --> 00:04:17,890 S2: to good things so you can say yes to better things. 68 00:04:18,130 --> 00:04:22,490 S2: Margin doesn't just appear, though. It's created when you intentionally 69 00:04:22,490 --> 00:04:25,770 S2: choose to live below your means. That space is what 70 00:04:25,770 --> 00:04:29,130 S2: allows you to give, to save, and to trust God 71 00:04:29,130 --> 00:04:32,410 S2: with the difference. If you want to go deeper into this, 72 00:04:32,450 --> 00:04:35,370 S2: I actually wrote about this in my new devotional, Our 73 00:04:35,370 --> 00:04:39,850 S2: Ultimate Treasure A 21 Day Journey to Faithful Stewardship. It 74 00:04:39,850 --> 00:04:42,810 S2: comes out next month, and you can pre-order your copy 75 00:04:42,810 --> 00:04:47,330 S2: or place a bulk order by visiting Buy.com and clicking shop. 76 00:04:47,570 --> 00:04:50,170 S2: And if you want to start reading the digital version, 77 00:04:50,170 --> 00:04:53,089 S2: it'll be available in the Faith fi app later this month. 78 00:04:53,210 --> 00:04:55,080 S2: You can do that when you become a phase five 79 00:04:55,120 --> 00:05:01,320 S2: partner at Faith five. Boaz probably never imagined that leaving 80 00:05:01,320 --> 00:05:04,479 S2: a little grain behind would shape the family line of 81 00:05:04,480 --> 00:05:09,640 S2: the Messiah. Yet God used his obedience to accomplish something eternal. 82 00:05:09,680 --> 00:05:12,600 S2: The same is true for us. When we live with margin, 83 00:05:12,600 --> 00:05:16,120 S2: we discover that it's not just about saving for the future, 84 00:05:16,240 --> 00:05:19,840 S2: it's about creating space for God to write his story 85 00:05:19,839 --> 00:05:22,840 S2: through us. Much more to come just around the corner. 86 00:05:22,880 --> 00:05:36,280 S2: Stick around. So glad to have you with us today 87 00:05:36,279 --> 00:05:39,760 S2: on Faith and Finance Live. Our team is away today, 88 00:05:39,760 --> 00:05:42,320 S2: so don't call in. But we lined up some great 89 00:05:42,320 --> 00:05:44,559 S2: questions in advance and we'll be going to those here 90 00:05:44,560 --> 00:05:47,240 S2: in just a moment. Let me also remind you that 91 00:05:47,240 --> 00:05:49,880 S2: the advice that I give each day on this program 92 00:05:49,880 --> 00:05:54,870 S2: is general in nature. We offer principles and ideas that 93 00:05:54,870 --> 00:05:58,230 S2: apply at a high level. They are not personalized, so 94 00:05:58,270 --> 00:06:01,990 S2: that's why you should always seek professional financial advice. And 95 00:06:02,029 --> 00:06:05,230 S2: if you'd like to find a professional who shares your values, 96 00:06:05,230 --> 00:06:07,950 S2: we of course, here at Faith and Finance Live recommend 97 00:06:07,990 --> 00:06:11,550 S2: the Certified Kingdom Advisor designation. These are men and women 98 00:06:11,550 --> 00:06:14,710 S2: who've met high standards, and they've been trained to bring 99 00:06:14,710 --> 00:06:17,550 S2: a biblical worldview of financial decision making. You can find 100 00:06:17,550 --> 00:06:19,950 S2: one at Faith comm. All right, let's dive in. We're 101 00:06:19,950 --> 00:06:22,510 S2: going to begin in Mississippi today. Hi, Bessie. Go ahead. 102 00:06:22,990 --> 00:06:27,710 S3: Yes. My question is, um, I have a life insurance policy. 103 00:06:27,710 --> 00:06:30,750 S3: It's a family policy. And I've had it ever since 104 00:06:30,750 --> 00:06:35,390 S3: my kids was like, you know, in their teens or before, 105 00:06:35,630 --> 00:06:37,950 S3: and now they're all grown and have their own family. 106 00:06:37,950 --> 00:06:40,910 S3: And I've been thinking about maybe just dropping theirs or 107 00:06:40,910 --> 00:06:44,229 S3: canceling it, or because it goes up a little bit 108 00:06:44,270 --> 00:06:45,190 S3: every year. 109 00:06:45,670 --> 00:06:46,150 S2: Yes. 110 00:06:46,190 --> 00:06:48,430 S3: And how would I go about it? Would I say 111 00:06:48,470 --> 00:06:50,750 S3: cancel the policy, or is there a different than cash 112 00:06:50,790 --> 00:06:52,350 S3: up But how would I do that? 113 00:06:52,390 --> 00:06:56,310 S2: Yeah. Uh, I totally agree with the direction you're headed here. 114 00:06:56,350 --> 00:06:58,710 S2: You know, if the if the policy was mainly to 115 00:06:58,750 --> 00:07:03,510 S2: protect minor children, uh, then once the kids are grown 116 00:07:03,510 --> 00:07:07,830 S2: financially independent, that original need goes away. And so I 117 00:07:07,830 --> 00:07:11,710 S2: would say it can often make sense to cancel the policy. 118 00:07:11,710 --> 00:07:15,070 S2: Is this a term policy? Uh, or do you know 119 00:07:15,110 --> 00:07:17,190 S2: if it's permanent life policy? 120 00:07:18,030 --> 00:07:19,630 S3: It's a permanent life policy. 121 00:07:19,630 --> 00:07:23,310 S2: I'm thinking, okay, so is there a cash value associated 122 00:07:23,310 --> 00:07:23,990 S2: with this? 123 00:07:26,270 --> 00:07:29,430 S3: Uh, I'm not for sure. I'm I, I think I'm 124 00:07:29,430 --> 00:07:30,310 S3: not for sure. 125 00:07:30,630 --> 00:07:35,110 S2: Okay. Uh, well, I think, you know, that's probably the first, uh, 126 00:07:35,110 --> 00:07:38,350 S2: you know, uh, call you need to make is to understand, 127 00:07:38,390 --> 00:07:42,550 S2: is there any kind of cash value associated with this? Because, uh, 128 00:07:42,550 --> 00:07:45,870 S2: if so, when you collapse that policy, uh, that would 129 00:07:45,870 --> 00:07:51,020 S2: be coming your way. And so you want to, you know, uh, ultimately, 130 00:07:51,020 --> 00:07:53,540 S2: if you cash it out and surrender it, you're going 131 00:07:53,580 --> 00:07:57,420 S2: to owe ordinary income tax on every dollar of profit 132 00:07:57,420 --> 00:08:01,060 S2: above what you paid in premiums. And so you just 133 00:08:01,060 --> 00:08:04,540 S2: need to understand that one option would be, you know, 134 00:08:04,620 --> 00:08:08,340 S2: you could transfer the policy's cash value into another type 135 00:08:08,340 --> 00:08:11,500 S2: of policy. Uh, but you also could just collapse the 136 00:08:11,500 --> 00:08:14,940 S2: policy if that death benefit is no longer needed. Um, 137 00:08:15,020 --> 00:08:17,060 S2: and then, you know, use that. You just want to 138 00:08:17,100 --> 00:08:20,220 S2: make sure that, uh, you know, you have set aside 139 00:08:20,220 --> 00:08:23,740 S2: any taxes that would be due on that, uh, just 140 00:08:23,740 --> 00:08:26,700 S2: so you, uh, could ultimately, uh, you know, not be 141 00:08:26,700 --> 00:08:29,820 S2: surprised by that when tax time comes. Does that make sense? 142 00:08:30,060 --> 00:08:33,220 S3: No, I don't file taxes now since I'm retired. 143 00:08:33,260 --> 00:08:35,460 S2: Okay. All right. So you just need to take a 144 00:08:35,460 --> 00:08:37,620 S2: look at that. Depending on what that cash value is 145 00:08:37,620 --> 00:08:39,380 S2: to make sure that that wouldn't put you in a 146 00:08:39,380 --> 00:08:43,100 S2: situation where you did now owe some taxes. So that 147 00:08:43,100 --> 00:08:45,460 S2: would be worth taking a look at. But at the 148 00:08:45,460 --> 00:08:47,500 S2: end of the day, there's no reason to continue to 149 00:08:47,540 --> 00:08:50,330 S2: pay for this policy now? Is it paid up or 150 00:08:50,370 --> 00:08:52,530 S2: are you still making premium payments? 151 00:08:52,570 --> 00:08:57,210 S3: I just make monthly premiums every month. And, uh, yeah, 152 00:08:57,250 --> 00:09:00,250 S3: I just make, uh, monthly premiums every month on it. 153 00:09:00,490 --> 00:09:03,210 S3: And so the last time I had talked to them 154 00:09:03,210 --> 00:09:05,570 S3: about that, I said maybe I didn't ask the question, right, 155 00:09:05,770 --> 00:09:07,890 S3: because I, I told them I wanted to see about 156 00:09:07,890 --> 00:09:11,090 S3: canceling it, but it wasn't like, you know, but just, uh, 157 00:09:11,250 --> 00:09:14,850 S3: wasn't even like $100 that you would get back, okay, 158 00:09:14,890 --> 00:09:16,970 S3: from all those years that you paid in. 159 00:09:17,170 --> 00:09:19,810 S2: Yeah, exactly. And so it's a it was probably a 160 00:09:19,809 --> 00:09:23,250 S2: fairly small policy with a small death benefit for, you know, 161 00:09:23,290 --> 00:09:26,650 S2: burial expenses or something. If for some reason a child 162 00:09:26,650 --> 00:09:30,250 S2: passed away, um, you know, generally that's why people get it. 163 00:09:30,250 --> 00:09:33,770 S2: I am of the opinion that, uh, you know, child 164 00:09:33,770 --> 00:09:37,770 S2: life insurance policies are rarely necessary. Insurance is really meant 165 00:09:37,770 --> 00:09:41,290 S2: to replace income. Children don't have income to replace, so 166 00:09:41,290 --> 00:09:45,130 S2: there's no financial loss to insure their an inefficient way 167 00:09:45,130 --> 00:09:49,200 S2: to save. So child whole life policies are kind of 168 00:09:49,240 --> 00:09:53,199 S2: billed as forced savings. But the returns to your point 169 00:09:53,200 --> 00:09:57,320 S2: there are very low compared to other options. And then 170 00:09:57,360 --> 00:10:00,600 S2: affordable coverage already exists. I mean, if you wanted to, 171 00:10:00,640 --> 00:10:03,080 S2: you could add a child rider to your own life 172 00:10:03,080 --> 00:10:06,080 S2: insurance for very little cost. So I think the next 173 00:10:06,080 --> 00:10:08,240 S2: step is to get out from under having to make 174 00:10:08,240 --> 00:10:11,680 S2: this premium payment every month, collapse that policy, get whatever 175 00:10:11,679 --> 00:10:14,680 S2: little cash value is there, and be done with it. Betsy, 176 00:10:14,679 --> 00:10:17,559 S2: I appreciate your call today. Thanks for being on the program. Uh, 177 00:10:17,559 --> 00:10:19,680 S2: let's see, we're going to head to, uh, Texas. Jody, 178 00:10:19,679 --> 00:10:22,320 S2: I understand you have a testimony of God working in 179 00:10:22,320 --> 00:10:23,760 S2: your financial life. Go ahead. 180 00:10:24,800 --> 00:10:25,520 S4: Yeah. Hi. 181 00:10:25,800 --> 00:10:26,120 S2: Hi. 182 00:10:26,440 --> 00:10:29,360 S4: Uh, yeah. I just wanted to call in because, uh, 183 00:10:29,360 --> 00:10:32,720 S4: your message today really, um, struck a chord kind of 184 00:10:32,760 --> 00:10:37,280 S4: in my life. And what I've kind of went through. And, um, 185 00:10:37,640 --> 00:10:42,120 S4: the Lord has, uh, put generosity on my heart from, uh, 186 00:10:42,320 --> 00:10:45,990 S4: you know, early on. And, um, one of the things 187 00:10:45,990 --> 00:10:50,110 S4: that you first run into is that it's, you know, 188 00:10:50,150 --> 00:10:52,950 S4: when when you feel the Lord is, uh, asking you 189 00:10:52,950 --> 00:10:56,550 S4: to give or asking you to do for a person 190 00:10:56,790 --> 00:10:59,510 S4: at a cost to yourself, which it normally always is. 191 00:11:00,110 --> 00:11:02,590 S4: There's going to be lots of people in your life 192 00:11:03,550 --> 00:11:07,829 S4: that are going to not be supportive of that. Yeah. And, um, 193 00:11:07,870 --> 00:11:12,589 S4: so if you stay true to your calling, though, and 194 00:11:12,590 --> 00:11:15,270 S4: you go out on that limb and you say, Lord, 195 00:11:15,270 --> 00:11:19,070 S4: I'm going to trust you, and you go ahead and, um, 196 00:11:19,110 --> 00:11:22,510 S4: do whatever you feel the Lord is asking you to do, um, 197 00:11:22,550 --> 00:11:27,110 S4: with the finances that you have. Then when you do that, 198 00:11:27,150 --> 00:11:32,270 S4: then the Lord you proved you faithful. So basically, somehow 199 00:11:32,270 --> 00:11:35,990 S4: you manage to pay your bills somehow, um, things end 200 00:11:36,030 --> 00:11:40,150 S4: up being okay. Um, you know, for whatever reason, or 201 00:11:40,190 --> 00:11:43,030 S4: sometimes it is a pinch and, and you go through 202 00:11:43,030 --> 00:11:46,310 S4: a season where you have to kind of pinch the 203 00:11:46,350 --> 00:11:48,870 S4: budget a little bit to just do what the Lord 204 00:11:48,870 --> 00:11:53,830 S4: is asking you to do. But either way, the what 205 00:11:53,830 --> 00:11:57,310 S4: I've learned through the years and as I've went through 206 00:11:57,309 --> 00:11:59,790 S4: times of not having enough money to pay my bills 207 00:11:59,790 --> 00:12:03,470 S4: and not having enough money to eat, um, to times 208 00:12:03,470 --> 00:12:07,110 S4: of having more money and more excess, is that the 209 00:12:07,110 --> 00:12:11,590 S4: lessons are really the same, no matter the level that 210 00:12:11,630 --> 00:12:16,150 S4: the that the feeling of when you give that I 211 00:12:16,150 --> 00:12:19,990 S4: believe to me, I believe Satan tries to get in 212 00:12:20,030 --> 00:12:23,710 S4: there and just fill you with fear and keep you 213 00:12:23,710 --> 00:12:27,030 S4: from doing the will of God by saying, oh no, 214 00:12:27,030 --> 00:12:30,470 S4: you have to have all these things stored for your 215 00:12:30,470 --> 00:12:34,949 S4: own protection. But it's a lie, because the truth of 216 00:12:34,950 --> 00:12:38,829 S4: the matter is, is that all it takes is one disaster. 217 00:12:39,110 --> 00:12:41,870 S4: All it takes is one illness. All it takes is 218 00:12:41,870 --> 00:12:45,740 S4: something you can't control. Yeah, and it's all gone. Yeah, 219 00:12:45,780 --> 00:12:48,179 S4: because it was never yours to begin with. 220 00:12:48,340 --> 00:12:48,860 S2: Yes. 221 00:12:48,900 --> 00:12:50,660 S4: It's all God's finances. 222 00:12:50,940 --> 00:12:52,780 S2: Yes, it's all God's property. 223 00:12:52,820 --> 00:12:56,819 S4: It's all God's land. And the more that you start 224 00:12:56,860 --> 00:13:01,260 S4: being comfortable with that idea that it's okay to just 225 00:13:01,300 --> 00:13:03,540 S4: go ahead. If the Lord leads you to do something, 226 00:13:03,860 --> 00:13:08,540 S4: trust him. Give do that thing, then really, the more 227 00:13:08,540 --> 00:13:13,900 S4: freedom you start having inside yourself. You're almost uncomfortable with 228 00:13:13,900 --> 00:13:17,740 S4: shame that the world has given you a fear that 229 00:13:17,740 --> 00:13:21,220 S4: you have to be able to provide for yourself for 230 00:13:21,260 --> 00:13:24,860 S4: 100 years. Yes, and I'm not saying to be frivolous, 231 00:13:24,860 --> 00:13:27,140 S4: and I'm not saying to go out and, you know, 232 00:13:27,179 --> 00:13:30,860 S4: do things that aren't good stewards of God's money or resources. 233 00:13:31,140 --> 00:13:34,740 S4: But I'm just saying, don't be afraid. Yeah, be afraid 234 00:13:34,780 --> 00:13:38,220 S4: and just go and follow his leadings and and be 235 00:13:38,220 --> 00:13:41,570 S4: generous and do what he's asking, because the blessings are tremendous, 236 00:13:41,610 --> 00:13:44,689 S4: and the freedom in that is just unbelievable. 237 00:13:45,090 --> 00:13:47,650 S2: Oh, I love it. Well, Jody, it's music to my 238 00:13:47,650 --> 00:13:51,410 S2: ears and a great reminder of God's faithfulness and the 239 00:13:51,450 --> 00:13:55,170 S2: role and responsibility we have of the King of Kings. 240 00:13:55,210 --> 00:14:00,170 S2: Resources as managers. Philippians 419. My God will supply every 241 00:14:00,170 --> 00:14:02,610 S2: need of yours according to his riches in glory in 242 00:14:02,610 --> 00:14:06,209 S2: Christ Jesus. You know, that verse wasn't written to wealthy patrons, 243 00:14:06,410 --> 00:14:10,090 S2: but to a generous church that gave sacrificially. And the 244 00:14:10,090 --> 00:14:13,730 S2: Apostle Paul was assuring them that God's supply isn't limited 245 00:14:13,730 --> 00:14:17,929 S2: by our resources. It flows from his glory, not our 246 00:14:17,929 --> 00:14:20,890 S2: bank accounts. And you've reminded us today that God is 247 00:14:20,890 --> 00:14:23,730 S2: the source of all that we have. God bless you. 248 00:14:23,730 --> 00:14:26,770 S2: Thanks for that. This is faith and finance live and 249 00:14:26,770 --> 00:14:36,610 S2: we'll be right back. I'm so thankful you've joined us 250 00:14:36,610 --> 00:14:39,330 S2: today on Faith and Finance Live, where we apply the 251 00:14:39,330 --> 00:14:43,560 S2: wisdom from God's Word to your financial decisions and choices. Now, 252 00:14:43,560 --> 00:14:46,280 S2: our team is not here today, so don't call in. 253 00:14:46,280 --> 00:14:49,480 S2: But we did line up some great questions in advance 254 00:14:49,480 --> 00:14:52,120 S2: that I know you'll enjoy. Uh, let's head back to 255 00:14:52,160 --> 00:14:54,520 S2: the phones. Mississippi. Miguel. Go ahead. 256 00:14:55,040 --> 00:14:58,080 S5: Hey, Rob. How you doing? Thank you for taking my call. 257 00:14:58,560 --> 00:15:02,400 S5: Of course. I'm 60 years old. I'm debt free. Except 258 00:15:02,400 --> 00:15:05,400 S5: for my home. I won a refinance from a 30 259 00:15:05,400 --> 00:15:10,600 S5: year to 15 year. You know, I owe like, $120,000. 260 00:15:11,000 --> 00:15:14,960 S5: Right now, I have a 5.8 interest rate. What can 261 00:15:15,000 --> 00:15:17,800 S5: I interest rate do I need to get for me 262 00:15:17,800 --> 00:15:22,120 S5: to be worth the fees in refinancing my home to 263 00:15:22,160 --> 00:15:23,280 S5: a 15 year? 264 00:15:23,800 --> 00:15:27,720 S2: Yeah. Uh, it's a great question. And so you have 265 00:15:27,720 --> 00:15:30,120 S2: a 30 year mortgage right now. How many years into 266 00:15:30,120 --> 00:15:30,880 S2: it are you? 267 00:15:31,240 --> 00:15:32,680 S5: Almost four years. 268 00:15:33,040 --> 00:15:38,120 S2: Okay, yeah. So you've got 26 years left at 5.7%. 269 00:15:38,240 --> 00:15:40,960 S2: you're clearly not going to get, uh, you know, anywhere 270 00:15:40,960 --> 00:15:43,800 S2: close to that. Um, I'd really like for you to 271 00:15:43,840 --> 00:15:48,000 S2: get at least 1% lower, uh, in the form of 272 00:15:48,000 --> 00:15:50,360 S2: a rate, preferably one and a half. Now, the good 273 00:15:50,360 --> 00:15:53,360 S2: news is you're going to 15 year rates are lower 274 00:15:53,360 --> 00:15:56,160 S2: than 30 year rates, but even then, you're still not 275 00:15:56,160 --> 00:15:59,880 S2: going to get down to, you know, the 4.5% roughly 276 00:15:59,880 --> 00:16:01,600 S2: that I'd like for you to be at for this 277 00:16:01,600 --> 00:16:04,880 S2: to make sense, because, you know, the only reason you'd 278 00:16:04,920 --> 00:16:06,960 S2: want to do this is if it's going to result 279 00:16:06,960 --> 00:16:11,560 S2: in you paying off the home faster and, you know, 280 00:16:11,760 --> 00:16:16,440 S2: with you paying the cost associated with that refinance, which, 281 00:16:16,560 --> 00:16:19,280 S2: you know, can run 3 or 4% in some cases, 282 00:16:19,280 --> 00:16:22,720 S2: even five. So did you say you owe about 120,000? 283 00:16:23,880 --> 00:16:24,960 S5: Yes, sir. That's right. 284 00:16:25,000 --> 00:16:29,280 S2: Okay. Yeah. So at 120,000, I mean, we're looking at, uh, 285 00:16:29,280 --> 00:16:32,800 S2: you know, if it's 3%, we're looking at around $3,600. 286 00:16:33,040 --> 00:16:36,920 S2: It could be as much as $6,000 just in refinance costs. 287 00:16:37,270 --> 00:16:39,590 S2: And so you've got to look at, first of all, 288 00:16:39,590 --> 00:16:41,590 S2: how long am I planning on staying in this home 289 00:16:41,830 --> 00:16:44,910 S2: based on everything you know today, how long do you 290 00:16:44,910 --> 00:16:46,670 S2: think you're going to be there? Most people only end 291 00:16:46,710 --> 00:16:48,950 S2: up staying in a home about an average of seven years. 292 00:16:48,950 --> 00:16:52,470 S2: Although you may have a full, you know, expectation, you're 293 00:16:52,470 --> 00:16:54,510 S2: going to stay there until it's fully paid off. 294 00:16:55,070 --> 00:16:57,670 S5: Right? I do, I do I mean, it's, you know, 295 00:16:57,670 --> 00:16:59,950 S5: I did my will and all that and giving it 296 00:16:59,950 --> 00:17:02,430 S5: to my kids. So I want to make sure, you know, 297 00:17:02,470 --> 00:17:05,109 S5: it's it's paid for. And I want to make, you know, 298 00:17:05,150 --> 00:17:06,910 S5: I'm going to be there for a long time. I mean, 299 00:17:06,950 --> 00:17:08,510 S5: I love my home. Okay. 300 00:17:08,710 --> 00:17:11,030 S2: Yeah. So what I would do, I mean, so that 301 00:17:11,030 --> 00:17:14,270 S2: helps because you've got time on your side and, you know, 302 00:17:14,310 --> 00:17:16,390 S2: if you can get that interest rate down and you 303 00:17:16,390 --> 00:17:19,109 S2: can cover that higher payment, which you're going to have 304 00:17:19,109 --> 00:17:23,190 S2: probably at a 15 year instead of a 30, um, 305 00:17:23,510 --> 00:17:26,350 S2: you know, you're, uh, you're going to save some money. 306 00:17:26,390 --> 00:17:29,950 S2: I mean, one option would be while you're waiting for 307 00:17:29,950 --> 00:17:32,910 S2: the rates to come down to get to that, uh, 308 00:17:32,910 --> 00:17:36,739 S2: you know, 4.5%, which would be my target, and we 309 00:17:36,740 --> 00:17:39,659 S2: probably are still a ways off from you. Seeing a 310 00:17:39,660 --> 00:17:42,100 S2: rate like that would be just to go ahead and 311 00:17:42,100 --> 00:17:45,140 S2: pay it like a 15 year. And so basically what 312 00:17:45,140 --> 00:17:48,020 S2: you could do is, is go online to a mortgage calculator, 313 00:17:48,020 --> 00:17:50,540 S2: or you could call your mortgage company and say, hey, 314 00:17:50,540 --> 00:17:53,700 S2: would you run me an amortization schedule? That's what the 315 00:17:53,700 --> 00:17:57,340 S2: term you would use for a 15 year payoff. And 316 00:17:57,340 --> 00:17:59,980 S2: they'd say, yeah, instead of sending, you know, whatever you're 317 00:17:59,980 --> 00:18:02,980 S2: sending right now, you need to send this amount. And, 318 00:18:03,300 --> 00:18:06,420 S2: you know, that would essentially treat it like a 15 year, 319 00:18:07,260 --> 00:18:10,740 S2: but you'd keep your 5.7% rate, which you wouldn't be 320 00:18:10,780 --> 00:18:13,100 S2: able to get today even at a 15 year. 321 00:18:13,660 --> 00:18:14,180 S5: Okay. 322 00:18:14,540 --> 00:18:17,460 S2: Yeah. Um, so I think that's going to be your 323 00:18:17,460 --> 00:18:20,460 S2: best option. Is, is pay it like a 15 as 324 00:18:20,460 --> 00:18:23,780 S2: an extra principle payment. And then if you ever need 325 00:18:23,780 --> 00:18:26,700 S2: to because your income changed, you could stop or reduce 326 00:18:26,700 --> 00:18:30,020 S2: those extra payments. And then once you see a rate 327 00:18:30,020 --> 00:18:32,219 S2: and it could be a couple of years, you know, 328 00:18:32,260 --> 00:18:34,369 S2: anywhere close to four and a half, now all of 329 00:18:34,369 --> 00:18:37,050 S2: a sudden it might make sense to refinance. 330 00:18:38,130 --> 00:18:41,010 S5: Right? And the reason I was asking is, you know, 331 00:18:41,050 --> 00:18:45,250 S5: I'm 60. Um, I've been working 70 hours a week 332 00:18:45,250 --> 00:18:49,010 S5: for the past six years. Wow. And, uh, two jobs. 333 00:18:49,010 --> 00:18:51,490 S5: Two jobs. And, um, I'm going to take my Social 334 00:18:51,490 --> 00:18:55,970 S5: Security at 62, which would be about $2,000 a month. Okay. 335 00:18:56,450 --> 00:18:59,409 S5: And keep one job. Keep one job. So if I 336 00:18:59,410 --> 00:19:03,170 S5: don't need that money, can I, you know, pay the 337 00:19:03,210 --> 00:19:08,530 S5: house with that Social Security money and pay up, refinance 338 00:19:08,530 --> 00:19:11,410 S5: and just, you know, pay it off quicker with my 339 00:19:11,410 --> 00:19:14,090 S5: Social Security money. If I don't need it. 340 00:19:14,130 --> 00:19:17,730 S2: You know, that wouldn't be my first choice. Uh, and 341 00:19:17,730 --> 00:19:21,730 S2: here's why. You know, if you delay that Social Security, 342 00:19:21,770 --> 00:19:24,010 S2: you're going to get about 8% a year in the 343 00:19:24,010 --> 00:19:25,969 S2: form of a higher check that's going to last the 344 00:19:25,970 --> 00:19:29,290 S2: rest of your life. And, you know, given the fact 345 00:19:29,290 --> 00:19:30,889 S2: that you don't have a lot in the in the 346 00:19:30,890 --> 00:19:34,050 S2: way of other retirement assets, I think it's in your 347 00:19:34,050 --> 00:19:36,810 S2: best interest to get that Social Security check up as 348 00:19:36,810 --> 00:19:39,930 S2: high as you can. If you take it at 62, 349 00:19:39,970 --> 00:19:43,330 S2: you're going to take about a 30% haircut off what 350 00:19:43,330 --> 00:19:46,890 S2: you would have received at age at full retirement age, 351 00:19:46,930 --> 00:19:52,410 S2: which is probably around 67. Um, so if you're telling me, listen, Rob, 352 00:19:52,450 --> 00:19:54,929 S2: my body just isn't going to hold out. I can't 353 00:19:54,930 --> 00:19:57,810 S2: continue at this pace, and I've got to drop one 354 00:19:57,810 --> 00:19:59,610 S2: of these jobs, and the only way I can do 355 00:19:59,609 --> 00:20:02,570 S2: that is by taking Social Security early. And that's going 356 00:20:02,609 --> 00:20:04,770 S2: to allow me to pay my bills. Well, that's that's 357 00:20:04,770 --> 00:20:08,050 S2: different than I'm taking it early and I'm just going 358 00:20:08,090 --> 00:20:10,410 S2: to take it and use it to prepay the mortgage. 359 00:20:10,530 --> 00:20:13,290 S2: If it's just to prepay the mortgage, I'd rather you 360 00:20:13,410 --> 00:20:18,130 S2: just continue to pay at the 5.7% rate and let 361 00:20:18,130 --> 00:20:21,689 S2: that Social Security check grow, because not only are you 362 00:20:21,690 --> 00:20:23,770 S2: going to get more than 5.7, you're going to get 363 00:20:23,770 --> 00:20:26,730 S2: about 8% a year in the form of a higher check. 364 00:20:26,970 --> 00:20:28,810 S2: But you're going to get that higher amount for the 365 00:20:28,810 --> 00:20:33,399 S2: rest of your life and future cost of living increases 366 00:20:33,400 --> 00:20:35,600 S2: are going to be based on the higher amount, not 367 00:20:35,600 --> 00:20:37,760 S2: the lower amount that you would lock in by taking 368 00:20:37,760 --> 00:20:38,880 S2: it at 62. 369 00:20:39,320 --> 00:20:42,440 S5: Okay. And I do work. I do work for the 370 00:20:42,440 --> 00:20:48,080 S5: state of Mississippi. So and I'll be vested this December 2026. 371 00:20:48,119 --> 00:20:48,760 S2: All right. 372 00:20:49,040 --> 00:20:52,480 S5: With a nice nice retirement. So I was hoping to 373 00:20:52,520 --> 00:20:56,359 S5: also use that money, you know, for living expenses. 374 00:20:56,680 --> 00:20:59,920 S2: Yeah. Well, that's great, but I still think, I mean, 375 00:20:59,920 --> 00:21:02,480 S2: just given how long people are living these days. I mean, 376 00:21:02,520 --> 00:21:06,160 S2: your biggest risk is what's called longevity risk, which is 377 00:21:06,160 --> 00:21:09,360 S2: the idea that you could live into your 90s or beyond. 378 00:21:09,640 --> 00:21:11,640 S2: And if you did, you need to make sure you've 379 00:21:11,640 --> 00:21:14,120 S2: got a guaranteed income source that's going to meet your 380 00:21:14,119 --> 00:21:17,040 S2: needs not only now, but in the future. And so 381 00:21:17,600 --> 00:21:20,600 S2: it's nice that you've got that state retirement. That's great. 382 00:21:20,760 --> 00:21:23,399 S2: But I love the idea of you delaying that Social 383 00:21:23,400 --> 00:21:25,840 S2: Security as long as you can, just so that check 384 00:21:25,840 --> 00:21:28,400 S2: gets up as high as it can so that the 385 00:21:28,400 --> 00:21:31,350 S2: two of those coming in are going to, you know, 386 00:21:31,390 --> 00:21:34,510 S2: be available for you to meet your current needs, but also, 387 00:21:34,790 --> 00:21:37,230 S2: you know, additional needs down the road that may involve 388 00:21:37,270 --> 00:21:39,510 S2: long term care or other situations. 389 00:21:40,190 --> 00:21:42,670 S6: Right, okay. Makes a lot of sense. Okay. 390 00:21:42,869 --> 00:21:45,629 S2: All right. Miguel. Lord bless you, my friend. Thanks for 391 00:21:45,630 --> 00:21:48,550 S2: being on the program today. Call anytime. Just a quick reminder. 392 00:21:48,550 --> 00:21:50,950 S2: We're not here today, so don't call in. But we're 393 00:21:50,950 --> 00:21:53,190 S2: going to head to a break and much more coming 394 00:21:53,190 --> 00:22:05,550 S2: just after this. Stay with us. Great to have you 395 00:22:05,550 --> 00:22:08,230 S2: with us on Faith and finance live. I'm Rob West. 396 00:22:08,230 --> 00:22:10,750 S2: Let me remind you that we're not live today, so 397 00:22:10,750 --> 00:22:14,230 S2: don't call in. But we have great information lined up 398 00:22:14,230 --> 00:22:18,389 S2: ahead in the program. Coming your way. Uh, let's go to, uh, Mississippi. Hi, Linda. 399 00:22:18,390 --> 00:22:19,030 S2: Go ahead. 400 00:22:20,150 --> 00:22:20,550 S4: Hi. 401 00:22:21,390 --> 00:22:22,590 S2: Hi, there. Thanks for calling. 402 00:22:24,190 --> 00:22:29,700 S7: Okay. Um, I'm 66, and I draw Social Security of 403 00:22:29,700 --> 00:22:35,899 S7: 11.96 and by the time I pay all my insurances, utilities, TV, 404 00:22:35,940 --> 00:22:44,300 S7: Wi-Fi and a consolidated loan, I have $35. Now I 405 00:22:44,340 --> 00:22:48,980 S7: pet sit, so I have that income that provides for 406 00:22:48,980 --> 00:22:55,700 S7: my food and my my gas and other expenses. Yeah, but, um, 407 00:22:55,740 --> 00:22:57,940 S7: I have a house that's paid for. The good thing 408 00:22:57,980 --> 00:23:01,060 S7: the good news is my house is paid for. My vehicle. 409 00:23:01,420 --> 00:23:06,379 S7: I have a 2020 vehicle that's paid for, and I'm 410 00:23:06,380 --> 00:23:10,300 S7: engaged to be married. So. And I have a mother 411 00:23:10,300 --> 00:23:13,820 S7: that lives nearby. So I'm thinking about and wanted to 412 00:23:13,820 --> 00:23:18,580 S7: get your input and suggestions about selling my home. It's 413 00:23:18,580 --> 00:23:27,689 S7: worth about 150 and investing that living with my mom 414 00:23:27,730 --> 00:23:33,290 S7: or get married, live with my my then husband and 415 00:23:33,890 --> 00:23:38,650 S7: still have that as a backup because my fiance is 416 00:23:39,010 --> 00:23:41,050 S7: he's a retired cop, so he doesn't really have a 417 00:23:41,090 --> 00:23:44,530 S7: lot of income, but he's a good guy, so. 418 00:23:44,810 --> 00:23:49,850 S2: Yeah, well, congratulations. That's all very exciting. And, uh, I'm 419 00:23:49,850 --> 00:23:53,250 S2: thrilled to hear about your your upcoming marriage. Um, yeah. 420 00:23:53,290 --> 00:23:55,850 S2: I mean, obviously there's there's a lot of changes coming, 421 00:23:55,850 --> 00:23:58,530 S2: and so we need to factor that in. What is 422 00:23:58,530 --> 00:24:01,970 S2: your plan as you and your fiance talk about what's 423 00:24:02,210 --> 00:24:05,369 S2: going to happen after marriage? Uh, are you moving into 424 00:24:05,410 --> 00:24:08,250 S2: his current home? Are you all thinking about getting a 425 00:24:08,250 --> 00:24:10,570 S2: new place together? What? What are your thoughts? 426 00:24:12,130 --> 00:24:15,410 S7: Well, we've we've talked about doing both. You know, we've 427 00:24:15,450 --> 00:24:19,770 S7: talked about both things. Not doing both at the same time, but. Yes, um, 428 00:24:20,050 --> 00:24:24,690 S7: moving in where he's at and then, uh, he doesn't. 429 00:24:24,730 --> 00:24:29,890 S7: He lives about an hour away. And, uh. But I 430 00:24:29,890 --> 00:24:33,330 S7: have an elderly mother and two disabled brothers that live 431 00:24:33,330 --> 00:24:37,170 S7: here where I live, five miles from me. And so 432 00:24:37,170 --> 00:24:41,330 S7: I'm here. I don't really need to leave until she 433 00:24:41,330 --> 00:24:45,850 S7: transitions to heaven. Yes. So. And I may be the 434 00:24:45,850 --> 00:24:48,450 S7: one that takes care of my two disabled brothers. 435 00:24:48,609 --> 00:24:49,609 S8: I see. Okay. 436 00:24:49,650 --> 00:24:52,369 S2: And they're in the same vicinity as your mom and you. 437 00:24:53,609 --> 00:24:54,090 S7: Yes. 438 00:24:54,330 --> 00:24:54,810 S8: Okay. 439 00:24:55,170 --> 00:24:59,409 S2: Uh, have you all considered. Okay. Got it. Uh, yeah. 440 00:24:59,410 --> 00:25:02,330 S2: So that's a big responsibility. And proximity to them is 441 00:25:02,330 --> 00:25:05,649 S2: going to be really important. Uh, have you all considered 442 00:25:05,650 --> 00:25:10,570 S2: your husband to be, uh, since he's retired? Relocating, at 443 00:25:10,609 --> 00:25:13,410 S2: least for a season to your current place? 444 00:25:14,570 --> 00:25:18,530 S7: We did, but he is the opposite. He has a 445 00:25:18,530 --> 00:25:23,210 S7: mortgage and he doesn't have much equity. And so, like, 446 00:25:23,210 --> 00:25:29,280 S7: maybe $25,000 equity at most. So, um, but he's kind 447 00:25:29,280 --> 00:25:32,879 S7: of anchored where he is, is a small town. He's 448 00:25:32,880 --> 00:25:35,000 S7: a retired cop of 20 years. It's kind of like 449 00:25:35,040 --> 00:25:36,680 S7: taking Andy out of Mayberry. 450 00:25:37,119 --> 00:25:40,440 S2: I get it. Yeah, but related to the home, if 451 00:25:40,440 --> 00:25:42,560 S2: it were to be sold, then the mortgage could be 452 00:25:42,560 --> 00:25:44,800 S2: paid off, and he'd still have a little bit left. Right. 453 00:25:44,800 --> 00:25:46,879 S2: If he'd be willing to move to your area. I 454 00:25:46,880 --> 00:25:51,280 S2: realize he's anchored there. You all, uh, you know, have, uh, 455 00:25:51,640 --> 00:25:53,960 S2: you know, you've been in your respective communities for a 456 00:25:53,960 --> 00:25:57,439 S2: long time, and he may not want to leave. I 457 00:25:57,440 --> 00:25:59,240 S2: think you all need to really think and pray through 458 00:25:59,240 --> 00:26:02,639 S2: that together as you plan for this next season of life. 459 00:26:02,640 --> 00:26:07,280 S2: But are you saying you've considered that? And and he's really, uh, 460 00:26:07,400 --> 00:26:10,280 S2: you know, not wanting to leave that that existing community. 461 00:26:11,560 --> 00:26:12,080 S7: Right? 462 00:26:12,280 --> 00:26:12,680 S2: Okay. 463 00:26:12,720 --> 00:26:17,840 S7: Um, we talk about halfway, you know, but still, I 464 00:26:17,840 --> 00:26:20,080 S7: really need to be. I told him I really don't 465 00:26:20,080 --> 00:26:25,270 S7: need to move until. Until my mom transitions. But at 466 00:26:25,270 --> 00:26:30,470 S7: the same time, um, the reality is I've got $35 467 00:26:30,470 --> 00:26:34,350 S7: a month left over. Yeah, yeah, for my expenses, I've 468 00:26:34,390 --> 00:26:38,429 S7: got a consolidated loan. That's part of that expense. Got it. 469 00:26:38,470 --> 00:26:42,909 S7: I don't I live frugal, so I just don't, uh. 470 00:26:43,790 --> 00:26:47,870 S2: Yeah. Well, I mean, there's there's two issues going on here, 471 00:26:47,910 --> 00:26:50,149 S2: and Linda and I appreciate all this background. I mean, 472 00:26:50,190 --> 00:26:55,590 S2: the first is how do you rightsize your financial life currently? 473 00:26:55,990 --> 00:26:57,990 S2: And you're right. I mean, given that you're going to 474 00:26:58,030 --> 00:27:01,430 S2: care for your mom and your brothers anyway, uh, if 475 00:27:01,470 --> 00:27:04,630 S2: you had the opportunity to sell your place, uh, and 476 00:27:04,630 --> 00:27:09,230 S2: invest it conservatively and just expect to generate about 4% 477 00:27:09,230 --> 00:27:12,950 S2: a year, that would add about 500 a month, 6000 478 00:27:12,990 --> 00:27:15,670 S2: a year that you could pull out of that account, 479 00:27:15,670 --> 00:27:19,550 S2: those investments with the expectation that you would maintain that 480 00:27:20,619 --> 00:27:24,820 S2: Thousand dollars that you wouldn't have to draw it down 481 00:27:24,820 --> 00:27:26,980 S2: over time, because you should be able to make that 482 00:27:26,980 --> 00:27:31,460 S2: up in the market again, very conservatively. Um, and then 483 00:27:31,580 --> 00:27:34,700 S2: you would be physically located where they are, and you'd 484 00:27:34,740 --> 00:27:38,420 S2: be able to provide care as they continue to age. And, 485 00:27:38,460 --> 00:27:40,820 S2: you know, that would obviously put you in a much 486 00:27:40,820 --> 00:27:43,659 S2: stronger position, allow you to rebuild some savings, get out 487 00:27:43,660 --> 00:27:46,780 S2: from under that consolidation loan, and then think about the 488 00:27:46,780 --> 00:27:49,260 S2: next season of life beyond that, once the Lord calls 489 00:27:49,260 --> 00:27:53,220 S2: your mom home, um, obviously your marriage, you know, complicates 490 00:27:53,220 --> 00:27:56,340 S2: that a bit. Um, and so I think this is where, 491 00:27:56,500 --> 00:27:59,419 S2: as an engaged couple, you all really need to, to 492 00:27:59,460 --> 00:28:02,460 S2: kind of flesh this out and make sure you're on 493 00:28:02,460 --> 00:28:04,899 S2: the same page with regard to what is this next 494 00:28:04,900 --> 00:28:09,460 S2: season look like, given him being anchored to that small 495 00:28:09,460 --> 00:28:13,860 S2: community there, you having this responsibility that you've taken on 496 00:28:13,859 --> 00:28:16,220 S2: that he, uh, you know, clearly needs to know full 497 00:28:16,220 --> 00:28:18,980 S2: well about and I'm sure he does with your mom 498 00:28:18,980 --> 00:28:21,540 S2: and your brothers and come up with a plan that 499 00:28:21,540 --> 00:28:25,820 S2: makes sense that that really matches, uh, the locale you 500 00:28:25,820 --> 00:28:28,700 S2: need to be in so that it's not onerous on 501 00:28:28,740 --> 00:28:31,659 S2: you to care for them, you know, living in another 502 00:28:31,859 --> 00:28:35,780 S2: place an hour away, that just doesn't seem practical and 503 00:28:36,020 --> 00:28:39,380 S2: that acknowledges the financial resources that you all are each 504 00:28:39,380 --> 00:28:42,540 S2: bringing to the table, both income and assets and debt, 505 00:28:43,020 --> 00:28:45,900 S2: and work on a plan together. And maybe that is 506 00:28:45,900 --> 00:28:49,220 S2: going to involve some premarital counseling if you haven't done that. Uh, 507 00:28:49,220 --> 00:28:51,300 S2: but it's certainly going to involve a lot of just 508 00:28:51,300 --> 00:28:54,340 S2: open and honest communication. But I think you all need 509 00:28:54,340 --> 00:28:56,420 S2: to have a meeting of the minds, because we could 510 00:28:56,460 --> 00:29:00,700 S2: solve for your financial situation right now. But it's not 511 00:29:00,700 --> 00:29:03,660 S2: just about you. It's about you as one flesh now 512 00:29:03,660 --> 00:29:06,700 S2: a married couple. And that, you know, is going to 513 00:29:06,700 --> 00:29:08,700 S2: mean that you need both of you to come together 514 00:29:08,700 --> 00:29:11,300 S2: and work on that plan. Uh, here's what I'd be 515 00:29:11,300 --> 00:29:14,740 S2: able to do. I'd be willing, Linda, to provide one 516 00:29:14,740 --> 00:29:18,700 S2: of our certified Christian financial counselors to help you all 517 00:29:18,810 --> 00:29:21,930 S2: put that plan together wouldn't cost you anything. We'd be 518 00:29:21,970 --> 00:29:23,890 S2: happy to pick up the cost for that, just as 519 00:29:23,890 --> 00:29:27,530 S2: our gift to you, and provide a third party that 520 00:29:27,530 --> 00:29:31,370 S2: could help you work on a new married spending plan. 521 00:29:31,530 --> 00:29:34,650 S2: Look at all of your income sources. Ultimately, you all 522 00:29:34,650 --> 00:29:36,729 S2: are going to have to decide where you're going to live, 523 00:29:36,730 --> 00:29:39,770 S2: whether that's his place, your place, or a new place 524 00:29:39,770 --> 00:29:43,770 S2: that you'd rent or buy together. Um, but you're going 525 00:29:43,810 --> 00:29:46,970 S2: to have to, you know, put that plan together. And 526 00:29:47,010 --> 00:29:49,690 S2: it's not just about you anymore. It's, you know, if 527 00:29:49,850 --> 00:29:52,050 S2: the Lord is leading you to marry, then you are 528 00:29:52,050 --> 00:29:54,770 S2: going to have to have that, uh, those jointly set goals. 529 00:29:54,810 --> 00:29:55,810 S2: Does that make sense? 530 00:29:56,290 --> 00:29:59,890 S7: Yeah. It does. Yeah. Thank you for putting it so well. 531 00:30:00,290 --> 00:30:04,290 S2: All right. Would you be interested in, uh, taking advantage 532 00:30:04,290 --> 00:30:06,490 S2: of one of our financial counselors? 533 00:30:07,130 --> 00:30:08,130 S7: Absolutely. 534 00:30:08,250 --> 00:30:10,690 S2: Okay, great. Yeah. Happy to do it. All right, let's 535 00:30:10,690 --> 00:30:14,290 S2: do this. You hold the line, and, um, we will 536 00:30:14,290 --> 00:30:16,729 S2: get your information, and then we'll get one of our 537 00:30:16,730 --> 00:30:20,840 S2: certified Christian financial counselors in touch with you. Uh, and 538 00:30:20,880 --> 00:30:23,680 S2: they'll work with you on, you know, 3 or 4 meetings. 539 00:30:23,680 --> 00:30:25,960 S2: We'll pick up the cost of it as a part 540 00:30:25,960 --> 00:30:28,120 S2: of that. They'll help you think through what are the 541 00:30:28,120 --> 00:30:31,600 S2: questions we need to answer with regard to our living situation, 542 00:30:31,600 --> 00:30:34,840 S2: with how we're going to merge our finances, what about 543 00:30:34,840 --> 00:30:37,920 S2: our new spending plan, and how do we work all 544 00:30:37,960 --> 00:30:40,640 S2: of that out? Just given the realities of the season 545 00:30:40,680 --> 00:30:44,760 S2: of life he's in as a retired police officer, your 546 00:30:44,760 --> 00:30:49,400 S2: season of life as somebody who's caring for family members and, uh, 547 00:30:49,400 --> 00:30:51,280 S2: let's see what God's plan is in the middle of 548 00:30:51,280 --> 00:30:53,720 S2: all of that. God bless you, Linda. Hold on the line. 549 00:30:53,720 --> 00:30:55,880 S2: We'll be back with our final segment and more calls 550 00:30:55,880 --> 00:31:07,400 S2: right after this. We're so glad you've joined us for 551 00:31:07,400 --> 00:31:10,400 S2: Faith and Finance Live today here in our final segment, 552 00:31:10,400 --> 00:31:12,720 S2: let me remind you not to call in because we're 553 00:31:12,720 --> 00:31:15,120 S2: not live today, but we'd love for you to stick 554 00:31:15,120 --> 00:31:18,270 S2: around and enjoy the rest of the program. Hey, before 555 00:31:18,270 --> 00:31:20,110 S2: we head back to the phones, I want to answer 556 00:31:20,110 --> 00:31:22,350 S2: one of your emails. By the way, we receive these 557 00:31:22,390 --> 00:31:26,550 S2: emails all the time at Ask Robert. Com feel free 558 00:31:26,550 --> 00:31:29,190 S2: to send your question along to be read on the air. Again, 559 00:31:29,230 --> 00:31:34,550 S2: ask Rob at faith. Com that's faith fi.com. This one 560 00:31:34,550 --> 00:31:37,270 S2: comes to us from Christy. She writes hi Rob, I 561 00:31:37,270 --> 00:31:39,950 S2: love listening to your show. I'm in my 20s and 562 00:31:39,950 --> 00:31:42,710 S2: I'm saving up for a house. I'm not sure about 563 00:31:42,710 --> 00:31:46,190 S2: the best way to invest my current savings. Should I 564 00:31:46,230 --> 00:31:48,990 S2: buy a CD or invest in the stock market? I'd 565 00:31:49,030 --> 00:31:52,550 S2: appreciate any advice. Thanks so much. You know, I think, Christy, 566 00:31:52,590 --> 00:31:55,430 S2: the key here is your time horizon. So if you're 567 00:31:55,430 --> 00:31:58,230 S2: planning on buying this house, let's say in less than 568 00:31:58,230 --> 00:32:01,350 S2: five years, then I don't want you investing in the 569 00:32:01,350 --> 00:32:05,230 S2: stock market. We really need a five plus year time horizon. 570 00:32:05,230 --> 00:32:07,830 S2: So I love that you're saving. And I realize it 571 00:32:07,830 --> 00:32:10,510 S2: may take some time, but you're likely going to want 572 00:32:10,550 --> 00:32:13,430 S2: to save that in a high yield savings account if 573 00:32:13,430 --> 00:32:16,430 S2: you have some money already put aside, you could lock 574 00:32:16,430 --> 00:32:19,070 S2: it up in a 15 or 18 month CD and 575 00:32:19,070 --> 00:32:21,310 S2: get a little bit more interest, but you don't want 576 00:32:21,350 --> 00:32:23,830 S2: to invest it because the key is to have that 577 00:32:23,830 --> 00:32:27,110 S2: money available when you're ready to make the purchase. The 578 00:32:27,110 --> 00:32:29,790 S2: problem with investing in the stock market is those stocks 579 00:32:29,790 --> 00:32:31,550 S2: may be down. At the time. We just don't know 580 00:32:31,550 --> 00:32:34,310 S2: what would be going on at that moment, and you 581 00:32:34,310 --> 00:32:36,510 S2: may have to sell them at a loss. By the way, 582 00:32:36,510 --> 00:32:40,430 S2: make your savings target 20% for a down payment at 583 00:32:40,430 --> 00:32:43,110 S2: a minimum. And then let's make sure that mortgage payment, 584 00:32:43,110 --> 00:32:47,590 S2: including taxes and insurance, is no more than 25% of 585 00:32:47,590 --> 00:32:49,750 S2: your take home pay. That's going to ensure that you 586 00:32:49,750 --> 00:32:54,070 S2: have enough left for everything else. But you can do this. 587 00:32:54,070 --> 00:32:57,350 S2: Stay at it, save diligently, and you will be ready 588 00:32:57,350 --> 00:33:00,790 S2: to make that purchase in no time. And again, don't 589 00:33:00,790 --> 00:33:03,350 S2: buy too much house even though these prices are still 590 00:33:03,390 --> 00:33:06,070 S2: pretty high. All right, let's go back to the calls 591 00:33:06,070 --> 00:33:09,550 S2: we've lined up for today. Let's go out to New Mexico. Jorge. 592 00:33:09,550 --> 00:33:10,150 S2: Go ahead. 593 00:33:11,590 --> 00:33:15,460 S9: Yeah. Hello, Rob. Thank you for taking my call. Yes, sir. 594 00:33:15,500 --> 00:33:20,140 S9: I have a simple question. Um, I my portfolio just 595 00:33:20,140 --> 00:33:24,380 S9: keeps showing red every time I turn on the computer. And, uh, 596 00:33:24,380 --> 00:33:28,100 S9: I'm wondering, uh, of course, I know we've gone through 597 00:33:28,140 --> 00:33:33,380 S9: an inflation, uh, cycle. Is there a possibility that we're 598 00:33:33,380 --> 00:33:40,340 S9: going through a deflation, uh, equalization, uh, situation? 599 00:33:41,060 --> 00:33:43,460 S2: Uh, you know, there there really isn't. And I certainly 600 00:33:43,460 --> 00:33:45,460 S2: appreciate the question. And I want to kind of get 601 00:33:45,460 --> 00:33:48,060 S2: to the heart of this in terms of your portfolio 602 00:33:48,060 --> 00:33:50,820 S2: here in a second, but just to to respond to 603 00:33:50,860 --> 00:33:54,580 S2: what you're suggesting here about deflation, uh, we're really not 604 00:33:54,620 --> 00:33:58,180 S2: I mean, the US is not currently in deflation, basically. 605 00:33:58,180 --> 00:34:02,460 S2: That means that would be a period where prices are 606 00:34:02,460 --> 00:34:07,140 S2: falling over time. It's also what's referred to as negative inflation. 607 00:34:07,420 --> 00:34:11,020 S2: And the latest inflation data and forecasts show prices are 608 00:34:11,020 --> 00:34:17,250 S2: still increasing. They're just increasing more slowly than in recent years. 609 00:34:17,489 --> 00:34:22,210 S2: That's called disinflation, not deflation. Uh, so when we look 610 00:34:22,210 --> 00:34:26,770 S2: at the inflation measures like CPI and and others, they're 611 00:34:26,770 --> 00:34:30,370 S2: still positive, which means that prices overall are climbing year 612 00:34:30,370 --> 00:34:35,730 S2: over year. And economists expect inflation to moderate, uh, more 613 00:34:35,730 --> 00:34:39,290 S2: closely toward the Federal Reserve's target. Although I will say 614 00:34:39,290 --> 00:34:41,689 S2: the fed is looking for 2%. I don't think we'll 615 00:34:41,690 --> 00:34:43,969 S2: get there. And most economists I trust don't think we 616 00:34:43,969 --> 00:34:47,130 S2: will either. We're probably going to land at a in 617 00:34:47,170 --> 00:34:49,850 S2: a range of somewhere between two and a half and 3%, 618 00:34:49,850 --> 00:34:52,529 S2: which is not ideal, but it's better than nine, where 619 00:34:52,530 --> 00:34:55,890 S2: we were, you know, during the last administration. So, uh, 620 00:34:55,890 --> 00:34:59,210 S2: you know, I think we're not in a period of deflation, uh, 621 00:34:59,210 --> 00:35:02,330 S2: that's for sure. And that wouldn't necessarily be a good 622 00:35:02,330 --> 00:35:06,770 S2: thing because, you know, that tends to show, uh, weak 623 00:35:06,770 --> 00:35:12,080 S2: economic conditions and it discourages, um, spending. Now, why are 624 00:35:12,080 --> 00:35:15,720 S2: you seeing red in your portfolio, especially with the market, 625 00:35:15,719 --> 00:35:19,520 S2: the stock market, most of the major market indexes are 626 00:35:19,560 --> 00:35:22,960 S2: bumping up against new all time highs just about every 627 00:35:23,320 --> 00:35:26,880 S2: few weeks over the last year. Uh, so the market 628 00:35:26,880 --> 00:35:29,839 S2: is doing well. And so I think there's reason for 629 00:35:29,840 --> 00:35:32,719 S2: you to look into why is that not translating to 630 00:35:32,760 --> 00:35:35,440 S2: my portfolio? One of the reasons that may be the 631 00:35:35,440 --> 00:35:38,920 S2: case is because you're in the retirement season of life, 632 00:35:39,400 --> 00:35:43,880 S2: is that you're largely in bonds, and bonds have not 633 00:35:43,880 --> 00:35:46,799 S2: done well, stocks have done well. Bonds have not done 634 00:35:46,800 --> 00:35:49,839 S2: as well. Do you have an advisor, George, that you 635 00:35:49,840 --> 00:35:51,839 S2: work with or do you manage this yourself? 636 00:35:53,160 --> 00:35:57,360 S9: No, I've just been trying to manage it myself. But, uh, 637 00:35:57,360 --> 00:36:01,600 S9: actually let's see. Okay. So I'm I'm ahead of where 638 00:36:01,600 --> 00:36:03,279 S9: I was last year. 639 00:36:03,400 --> 00:36:03,880 S2: Okay. 640 00:36:03,920 --> 00:36:08,879 S9: Uh, let me look here. I'm $6,000 ahead of where 641 00:36:08,989 --> 00:36:10,790 S9: I was last year. 642 00:36:10,790 --> 00:36:13,550 S2: And how much is in the portfolio? What's the total amount? 643 00:36:14,270 --> 00:36:22,310 S9: Uh, cost basis 300 and. Well, to see, it's worth 276,000. Uh, 644 00:36:22,310 --> 00:36:29,190 S9: my cost basis is 329,000. Okay. So I'm down like 16%. 645 00:36:29,469 --> 00:36:29,950 S2: Yeah. 646 00:36:30,150 --> 00:36:30,550 S9: Uh. 647 00:36:30,830 --> 00:36:32,270 S2: Over what period of time? 648 00:36:32,710 --> 00:36:35,830 S9: Well, just a couple of months, but, uh, like three 649 00:36:35,830 --> 00:36:38,950 S9: months ago, I had a lot of green. 650 00:36:39,190 --> 00:36:42,669 S2: Yeah, yeah. Well, it's really less about kind of what's 651 00:36:42,670 --> 00:36:44,989 S2: happening on a day to day basis. But you do 652 00:36:44,989 --> 00:36:46,870 S2: need to look at those long term trends. I mean, 653 00:36:46,910 --> 00:36:49,910 S2: for instance, you know, the S&P 500 was up over, 654 00:36:49,950 --> 00:36:53,509 S2: you know, 20% last year, 25% plus. So you know, 655 00:36:53,510 --> 00:36:58,670 S2: that'd be $70,000 on 276,000. So what would make sense 656 00:36:58,670 --> 00:37:00,630 S2: to me is for you to connect with a certified 657 00:37:00,630 --> 00:37:03,910 S2: Kingdom advisor. Just to look over the portfolio. It doesn't 658 00:37:03,910 --> 00:37:06,270 S2: mean you have to hire the advisor to manage it 659 00:37:06,270 --> 00:37:09,149 S2: for you, but it would be, I think, important for 660 00:37:09,150 --> 00:37:12,470 S2: somebody to look at the holdings in the portfolio. Help 661 00:37:12,469 --> 00:37:14,870 S2: you do an analysis of how this how is this 662 00:37:14,870 --> 00:37:18,830 S2: portfolio performed over the last one, 3 or 5 years, 663 00:37:18,830 --> 00:37:22,109 S2: not months or days or weeks, but years. And then 664 00:37:22,110 --> 00:37:25,350 S2: look at how it's allocated. How much do you have 665 00:37:25,350 --> 00:37:27,270 S2: in stocks? How much do you have in bonds? Are 666 00:37:27,270 --> 00:37:30,589 S2: you largely international or domestic? And make sure that the 667 00:37:30,590 --> 00:37:34,950 S2: portfolio is positioned in a way that's appropriate for your 668 00:37:34,950 --> 00:37:38,150 S2: age and risk tolerance? But I think it would work. 669 00:37:38,190 --> 00:37:40,469 S2: It would be worth you connecting with an advisor there 670 00:37:40,469 --> 00:37:41,750 S2: in New Mexico. Jorge. 671 00:37:43,270 --> 00:37:46,950 S9: Okay. Alrighty. Well, thank you very much. I do appreciate 672 00:37:46,950 --> 00:37:50,670 S9: your your views on this. I just, uh, a little 673 00:37:50,710 --> 00:37:55,910 S9: bit confused as to why, uh, my, my portfolio is 674 00:37:55,910 --> 00:37:58,549 S9: acting this way. You know, when I, when I hear 675 00:37:58,550 --> 00:38:00,950 S9: about all the good news, right? 676 00:38:00,989 --> 00:38:02,950 S2: Yeah. No, I hear you. And I think it's worth 677 00:38:02,950 --> 00:38:05,870 S2: looking into. And there's probably a logical example that has 678 00:38:05,870 --> 00:38:08,859 S2: to do with what you're actually invested in, but it 679 00:38:08,860 --> 00:38:11,060 S2: would be good for you to check that out. Are 680 00:38:11,060 --> 00:38:13,339 S2: you comfortable on the internet, George, or would you like 681 00:38:13,340 --> 00:38:14,980 S2: one of our team members to help you? 682 00:38:15,660 --> 00:38:19,820 S9: Uh, yeah. Yes and yes. Probably. 683 00:38:20,020 --> 00:38:22,900 S2: Okay. Well, I'll give you both. And what I'm talking 684 00:38:22,900 --> 00:38:24,660 S2: about is if you did want to connect with a 685 00:38:24,660 --> 00:38:27,419 S2: certified Kingdom advisor there in New Mexico, there's two ways 686 00:38:27,420 --> 00:38:30,300 S2: to do it. Uh, option one is you go online 687 00:38:30,300 --> 00:38:36,420 S2: and go to find a com that's find a C, 688 00:38:37,620 --> 00:38:41,060 S2: c k stands for Certified Kingdom Advisor. You'll put in 689 00:38:41,060 --> 00:38:43,540 S2: your zip code. You'll get a list of cars in 690 00:38:43,540 --> 00:38:46,339 S2: your area. You can call 2 or 3 and find 691 00:38:46,340 --> 00:38:47,940 S2: the one that you think is the best fit to 692 00:38:47,980 --> 00:38:50,980 S2: schedule a meeting with. The second option and in order 693 00:38:50,980 --> 00:38:52,380 S2: to take advantage of this, I'm going to ask you 694 00:38:52,380 --> 00:38:55,299 S2: to hold the line is our team will get your information, 695 00:38:55,300 --> 00:38:57,620 S2: and I can have somebody give you a call and 696 00:38:57,620 --> 00:39:00,460 S2: help you find an advisor in your area, if that's 697 00:39:00,460 --> 00:39:01,860 S2: easier for you. Okay. 698 00:39:03,340 --> 00:39:05,969 S9: Okay. That's that's a good idea. 699 00:39:06,010 --> 00:39:08,410 S2: All right. Very good. You hold the line. Thanks for calling. 700 00:39:08,410 --> 00:39:11,370 S2: You're welcome. Lord bless you, my friend. Let's go to Arkansas. 701 00:39:11,370 --> 00:39:15,050 S2: We'll round out the broadcast and, uh. Let's see. Yeah. Arkansas. Glenn. 702 00:39:15,050 --> 00:39:15,690 S2: Go ahead. 703 00:39:17,250 --> 00:39:18,290 S10: Rob, how are you doing? 704 00:39:18,290 --> 00:39:19,810 S2: I'm doing great. Thanks for your call. 705 00:39:20,330 --> 00:39:21,930 S10: Appreciate your program very much. 706 00:39:22,130 --> 00:39:22,690 S2: Thank you. 707 00:39:22,850 --> 00:39:26,850 S10: Uh, I have a son who's 26, and he's looking 708 00:39:26,850 --> 00:39:30,330 S10: to purchase his first home, and, uh, I'm not sure 709 00:39:30,330 --> 00:39:32,969 S10: what his finances are. And, you know, I've discussed things 710 00:39:32,969 --> 00:39:38,089 S10: with him, and he's kind of, uh, uh, sometimes he 711 00:39:38,090 --> 00:39:41,330 S10: doesn't want to listen to me. So I'm trying to 712 00:39:41,930 --> 00:39:44,450 S10: figure out the best way to approach him. Uh, you 713 00:39:44,450 --> 00:39:48,770 S10: know about it? Uh, he's he's, uh, he's had some 714 00:39:48,969 --> 00:39:51,330 S10: some of his friends buy homes, and so he I 715 00:39:51,370 --> 00:39:53,650 S10: think he feels like he's kind of left out, you know, 716 00:39:53,650 --> 00:39:56,170 S10: he doesn't buy a home, and. Yes, sir. And, uh, 717 00:39:56,530 --> 00:39:58,330 S10: I'm just trying to find out the best way I 718 00:39:58,330 --> 00:40:02,609 S10: can approach him. And, uh, he's kind of, uh, he's 719 00:40:02,610 --> 00:40:05,200 S10: kind of hard headed, like his father's sometimes. 720 00:40:05,480 --> 00:40:08,000 S2: So I certainly understand that. 721 00:40:08,040 --> 00:40:10,120 S10: But he's a great son, you know. And he's, uh, 722 00:40:10,560 --> 00:40:13,320 S10: currently not married. But he does have a girlfriend, and 723 00:40:13,440 --> 00:40:15,959 S10: he just has one that one income that he has, 724 00:40:16,000 --> 00:40:19,839 S10: which is, you know, he's making money. Um, and I 725 00:40:19,840 --> 00:40:21,880 S10: don't really know how much money he has saved up 726 00:40:21,880 --> 00:40:23,600 S10: for a down payment. I tried to tell him, you know, 727 00:40:23,640 --> 00:40:27,239 S10: about at least seven, 30% and, uh, you know, getting 728 00:40:27,280 --> 00:40:30,719 S10: a home inspector and make sure the condition is, you know, 729 00:40:30,760 --> 00:40:33,560 S10: because I've. I've purchased a couple of homes and I've 730 00:40:33,560 --> 00:40:35,960 S10: been in the debt with real estate companies in the 731 00:40:35,960 --> 00:40:38,560 S10: past through our business with a pest control business where 732 00:40:38,560 --> 00:40:40,800 S10: we brought a lot of clearances on houses and things 733 00:40:40,800 --> 00:40:41,480 S10: like that. 734 00:40:41,640 --> 00:40:44,160 S2: Sure. Well, let me give you a couple of thoughts. Unfortunately, 735 00:40:44,160 --> 00:40:45,560 S2: I'm about to run out of time and I don't 736 00:40:45,560 --> 00:40:47,880 S2: want to get cut short here. I certainly appreciate what 737 00:40:47,880 --> 00:40:49,960 S2: you're trying to do with your son. I would say 738 00:40:49,960 --> 00:40:53,759 S2: the first thing is don't react emotionally. Uh, you know, 739 00:40:53,800 --> 00:40:56,839 S2: he wants to think long term, not buying a house 740 00:40:56,840 --> 00:40:59,440 S2: just because his buddies are. And so he, you know, 741 00:40:59,480 --> 00:41:03,799 S2: especially in this environment where home affordability is very challenging. 742 00:41:03,800 --> 00:41:07,080 S2: Costs are up, interest rates are up. Uh, you know, 743 00:41:07,120 --> 00:41:08,960 S2: we just don't want him to rush into that because 744 00:41:08,960 --> 00:41:11,640 S2: that could really cause him some challenges down the road. 745 00:41:11,640 --> 00:41:14,600 S2: Number two, make sure he's financially ready. He needs an 746 00:41:14,800 --> 00:41:19,040 S2: emergency fund of 3 to 6 months expenses after closing. 747 00:41:19,239 --> 00:41:22,279 S2: That's still available. He needs a down payment. I would 748 00:41:22,280 --> 00:41:26,600 S2: aim for 20% plus. You mentioned 30. That'd be even better. 749 00:41:26,600 --> 00:41:28,920 S2: But that's challenging in this environment. So I would say 750 00:41:28,960 --> 00:41:33,520 S2: at least 20% down, no high interest debt, credit cards 751 00:41:33,520 --> 00:41:37,839 S2: at zero and stable, predictable income. I would encourage him 752 00:41:37,840 --> 00:41:41,280 S2: to choose the location over the size as he picks 753 00:41:41,280 --> 00:41:45,080 S2: the home. I would have him get pre-approved for the mortgage, 754 00:41:45,080 --> 00:41:47,440 S2: and I would want to make sure that that mortgage, 755 00:41:47,960 --> 00:41:52,280 S2: in terms of the principal interest, taxes and insurance payment 756 00:41:52,280 --> 00:41:55,920 S2: is no more than 25% of his take home pay, 757 00:41:56,239 --> 00:41:59,680 S2: so he has enough left for everything else. Definitely no 758 00:41:59,680 --> 00:42:03,150 S2: more than 30% of his take home pay. Beyond that, 759 00:42:03,150 --> 00:42:06,830 S2: I love your idea. Don't skip the inspection. And you know, 760 00:42:06,870 --> 00:42:09,430 S2: I think the bottom line is, don't rush this thing. 761 00:42:09,430 --> 00:42:11,670 S2: If he's not ready, it'd be better to wait and 762 00:42:11,670 --> 00:42:15,910 S2: save and pay down debt and shore up his financial foundation. Glenn, 763 00:42:15,950 --> 00:42:18,189 S2: you sound like a great dad, and I appreciate your 764 00:42:18,190 --> 00:42:20,549 S2: call today. If we can help further, don't hesitate to 765 00:42:20,590 --> 00:42:23,509 S2: reach out. Lord bless you, sir. Call anytime. Well, folks, 766 00:42:23,510 --> 00:42:25,350 S2: it's been a joy to be along with you today. 767 00:42:25,350 --> 00:42:29,189 S2: Thanks for inviting us into your story. What a joy 768 00:42:29,190 --> 00:42:31,830 S2: it is to encourage you with God's Word as you 769 00:42:31,870 --> 00:42:35,030 S2: seek to be that wise and faithful steward. Our goal 770 00:42:35,030 --> 00:42:38,430 S2: that you'd see God as your ultimate treasure. Let me 771 00:42:38,469 --> 00:42:40,310 S2: say thanks to my team today. I couldn't do it 772 00:42:40,310 --> 00:42:43,670 S2: without them. Amy, Dan, Gabby, Tee, and Jim. Faith and 773 00:42:43,670 --> 00:42:46,950 S2: Finance Live is a partnership between Moody Radio and Faith fi. 774 00:42:47,070 --> 00:42:49,589 S2: Have a wonderful day and come back and join us 775 00:42:49,590 --> 00:42:52,750 S2: next time for another edition of Faith and Finance live.