WEBVTT - Life Planning 0:00:04.360 --> 0:00:07.320 The following program was prerecorded. So our phone lines are 0:00:07.320 --> 0:00:08.119 not open. 0:00:08.480 --> 0:00:13.080 Psychologist and educator Fitzhugh Dodson wrote, without goals and plans 0:00:13.080 --> 0:00:15.600 to reach them, you're like a ship that has set 0:00:15.600 --> 0:00:19.440 sail with no destination. Hi, I'm Rob West. Of course, 0:00:19.480 --> 0:00:21.880 goals don't amount to much unless you have a plan 0:00:21.880 --> 0:00:25.280 to reach them. That planning should involve more than building 0:00:25.280 --> 0:00:29.080 your net worth. Ron Anderson joins us today to discuss 0:00:29.080 --> 0:00:31.680 life planning, what it is, how to do it, and 0:00:31.680 --> 0:00:34.560 why you should. Then we have some great questions lined 0:00:34.560 --> 0:00:38.080 up for you. But don't call in today because we're prerecorded. 0:00:38.200 --> 0:00:41.520 This is faith and finance. Live biblical wisdom for your 0:00:41.520 --> 0:00:49.600 financial journey. Well, my friend Ron Anderson is a certified 0:00:49.600 --> 0:00:53.479 Kingdom advisor. He has 30 years experience helping folks across 0:00:53.479 --> 0:00:57.600 the country plan and set goals for financial affairs. He's 0:00:57.600 --> 0:01:01.430 the founder and president of plan A wealth management based 0:01:01.430 --> 0:01:04.110 in Lincoln, Nebraska. Ron, great to have you here. 0:01:04.270 --> 0:01:06.069 Hey. Thanks, Rob. It's great to be here. 0:01:06.430 --> 0:01:09.870 Ron, you've been a successful financial planner for a long time. 0:01:09.870 --> 0:01:12.510 You've helped a lot of folks, but it seems lately 0:01:12.510 --> 0:01:15.270 that the Lord has really burdened you with an additional 0:01:15.270 --> 0:01:19.950 passion that I'll call life planning. Now, that sounds self-explanatory, 0:01:19.950 --> 0:01:22.470 but I suspect there's more to it, isn't there? 0:01:22.630 --> 0:01:25.110 Yeah, I would say the more to. It is really 0:01:25.110 --> 0:01:27.190 thinking about what is your purpose? How are you going 0:01:27.190 --> 0:01:29.510 to make a contribution? You need to know what your 0:01:29.510 --> 0:01:32.910 financial goals are. But why do you want to be successful? 0:01:32.910 --> 0:01:34.350 What are you going to do with your time and 0:01:34.350 --> 0:01:37.110 your life? If you're on track financially to make that 0:01:37.110 --> 0:01:39.550 bigger contribution that God put you here for? 0:01:39.790 --> 0:01:43.110 Yeah, I love that it's this big why? Let's build 0:01:43.110 --> 0:01:45.509 on that. So then what is really the purpose of 0:01:45.510 --> 0:01:46.429 life planning? 0:01:46.670 --> 0:01:49.270 I think the purpose is to ask yourself some really 0:01:49.270 --> 0:01:52.270 tough questions. You know, why do you want to be successful? 0:01:52.270 --> 0:01:54.390 Why do you want to reach your goals? And if 0:01:54.390 --> 0:01:56.950 God allows you to do that, what are you going 0:01:56.950 --> 0:01:58.940 to do with your time? how are you going to 0:01:58.940 --> 0:02:02.660 fulfill that unique purpose and contribution that God put you 0:02:02.700 --> 0:02:05.580 here to make? How do you figure that out? What 0:02:05.580 --> 0:02:09.100 questions do you want to ask yourself to determine and 0:02:09.100 --> 0:02:12.179 narrow down what makes me special and unique, and how 0:02:12.180 --> 0:02:14.339 can I use that to further God's kingdom? 0:02:14.460 --> 0:02:17.419 Yeah, it makes me think about that iceberg illustration that 0:02:17.419 --> 0:02:20.820 our friend Ron Blue talks about. That 10% above the 0:02:20.820 --> 0:02:24.540 waterline is the financial decisions, but it's the 90% below 0:02:24.580 --> 0:02:28.660 the why and your values and your faith that really matter. 0:02:28.660 --> 0:02:32.620 So Ron, how then can a financial planner help with 0:02:32.620 --> 0:02:33.460 life planning? 0:02:33.940 --> 0:02:37.020 I think a financial planner can really help someone set 0:02:37.060 --> 0:02:40.500 a reasonable lifestyle so that they know how much they 0:02:40.500 --> 0:02:44.820 can spend, helping them save enough for their future, which 0:02:44.820 --> 0:02:47.580 really frees them up. If God nudges their heart to 0:02:47.620 --> 0:02:51.100 do something different with their time or with their energy 0:02:51.100 --> 0:02:54.300 or occupation, they have the margin in their lives to 0:02:54.340 --> 0:02:57.300 be able to say, yes, Lord, I will follow as 0:02:57.300 --> 0:03:00.179 opposed to I can't afford to do this. So it 0:03:00.180 --> 0:03:03.020 also gives you another person to think your confusion out 0:03:03.020 --> 0:03:05.700 loud with. As you're talking about your goals, you can 0:03:05.700 --> 0:03:08.619 also talk about, well, I feel like this is something 0:03:08.620 --> 0:03:11.500 I maybe am supposed to be a part of, and 0:03:11.500 --> 0:03:14.420 it gives you somebody to bounce those ideas off. I 0:03:14.419 --> 0:03:17.660 think you actually figure out a lot by talking to 0:03:17.700 --> 0:03:20.660 somebody about what you're thinking. You thinking it out loud 0:03:20.660 --> 0:03:22.260 helps clarify it in your mind. 0:03:22.620 --> 0:03:25.540 Oh, well. And perhaps even challenging you along the way. 0:03:25.540 --> 0:03:28.020 I love that you mentioned the reasonable lifestyle because I 0:03:28.020 --> 0:03:29.500 know one of the things you do is help your 0:03:29.500 --> 0:03:33.100 clients define enough so that they have the capacity to 0:03:33.139 --> 0:03:34.980 respond to the leading of the Lord, right? 0:03:35.420 --> 0:03:39.900 Absolutely. And be able to give generously along the journey. 0:03:40.260 --> 0:03:43.580 Ron, take us into Scripture. What does Scripture say about 0:03:43.580 --> 0:03:44.460 life planning? 0:03:44.980 --> 0:03:47.700 You know, one of the favorite scriptures I have related 0:03:47.700 --> 0:03:52.180 to life planning is Ephesians chapter five, and it basically says, 0:03:52.220 --> 0:03:55.260 be careful how you live. Don't live like a fool, 0:03:55.330 --> 0:03:58.770 But like someone who's wise. Make the most of every opportunity. 0:03:59.050 --> 0:04:02.610 Don't act thoughtlessly, but understand what God wants you to do. 0:04:02.810 --> 0:04:05.130 And how do you understand what God wants you to do? 0:04:05.170 --> 0:04:08.890 You spend time with God, you think. You ask questions 0:04:09.290 --> 0:04:11.530 and you try to listen to God's voice. 0:04:11.970 --> 0:04:14.930 Mhm. That's great. Ron, what have you seen play out 0:04:14.930 --> 0:04:17.570 in the lives of your clients as you've taken them 0:04:17.570 --> 0:04:18.730 through this process? 0:04:19.370 --> 0:04:22.770 Uh, one I can think of in particular, you know, 0:04:22.810 --> 0:04:25.450 they gave away a large gift and they actually went 0:04:25.450 --> 0:04:30.890 overseas and translated the Bible under cover in Eastern Europe, 0:04:30.890 --> 0:04:33.210 and they were able to do that and fund their 0:04:33.210 --> 0:04:35.570 own ministry doing it that way. Then they came back 0:04:35.850 --> 0:04:38.770 to the States after they were done, and they bought 0:04:38.770 --> 0:04:42.770 a place to give others rest in Colorado. So they 0:04:42.770 --> 0:04:45.010 used the money that God had blessed them with. And 0:04:45.010 --> 0:04:47.130 now they're using that as a blessing to people that 0:04:47.130 --> 0:04:50.050 are in ministry to give them rest because so many 0:04:50.050 --> 0:04:52.130 people are going so fast today. 0:04:52.450 --> 0:04:57.359 Wow. Well, that's far more than the typical financial planning engagement. 0:04:57.360 --> 0:05:01.599 Those are life changing, kingdom building outcomes, I love it. Ron, 0:05:01.600 --> 0:05:03.360 thanks for stopping by today, my friend. 0:05:03.640 --> 0:05:05.520 Hey, thanks, Rob. Great talking to you. 0:05:05.839 --> 0:05:08.280 If you want to learn more about Ron and plan A, 0:05:08.320 --> 0:05:16.680 you can head to plan a.com. Again, that website plan aww.com. 0:05:16.880 --> 0:05:19.600 Hey folks, we're going to pause now for a brief break, 0:05:19.600 --> 0:05:22.440 but we'll be back with much more on today's faith 0:05:22.440 --> 0:05:35.200 and finance live. Grateful you've tuned in to Faith and 0:05:35.200 --> 0:05:37.800 Finance live. I'm Rob West, your host. This is where 0:05:37.800 --> 0:05:40.880 we recognize that God owns it all. You're a steward 0:05:40.880 --> 0:05:43.680 or a manager of God's resources, and money is a 0:05:43.680 --> 0:05:46.800 tool to accomplish God's purposes. Hey, we're away from the 0:05:46.800 --> 0:05:49.320 studio today, so don't call in. But we lined up 0:05:49.320 --> 0:05:53.470 some great questions in advance that I know you will enjoy. 0:05:53.510 --> 0:05:55.990 In fact, let's go ahead and take one of those 0:05:55.990 --> 0:05:58.750 right now. Let's begin in Missouri today. Dennis, how can 0:05:58.750 --> 0:05:59.390 I help you, sir? 0:06:00.070 --> 0:06:03.150 Well, blessings to you all. I hope I can explain this. 0:06:03.430 --> 0:06:07.710 I'm 75 and I took out a loan a while 0:06:07.710 --> 0:06:13.469 back to help my daughter, and, uh, she's paying it off. And, uh, 0:06:13.710 --> 0:06:15.990 I recently bought her a car that I'm going to 0:06:15.990 --> 0:06:20.270 be paying off, and I have about 5000 available every month, 0:06:20.790 --> 0:06:23.750 so I'll be. I hope to have the car paid 0:06:23.750 --> 0:06:30.190 off like in seven months, approximately. My question is, once 0:06:30.510 --> 0:06:33.190 the car is paid off and I was just going 0:06:33.230 --> 0:06:36.229 to take the 5000 that I have available each month 0:06:36.589 --> 0:06:39.229 and just throw it into savings rather than go into 0:06:39.270 --> 0:06:42.830 investing and all that stuff. Because I'm not, I'm legally blind, 0:06:42.870 --> 0:06:45.950 so I'm not very good on seeing some of this stuff. 0:06:46.310 --> 0:06:49.830 Yes, yes. And you're wondering, Dennis, whether that's a good 0:06:49.830 --> 0:06:52.950 idea or is there some other question related to that? 0:06:54.150 --> 0:06:58.150 That's the main thing is, yeah, of course. I was 0:06:58.150 --> 0:07:01.870 just going to throw that $5,000 in savings and leave it. 0:07:02.029 --> 0:07:04.110 Yeah. Dennis, I love this. First of all, you sound 0:07:04.110 --> 0:07:07.589 like a really generous father. I love that. And do 0:07:07.589 --> 0:07:10.710 you have anything in savings currently, or would this be 0:07:10.710 --> 0:07:12.470 the beginning of your savings account? 0:07:13.310 --> 0:07:15.870 Well, I have 10,000 savings right now. 0:07:16.070 --> 0:07:18.790 Okay. And how much are you spending in a typical month? 0:07:18.790 --> 0:07:20.070 What are your expenses? 0:07:21.030 --> 0:07:25.390 Well, that's kind of hard to explain. I'm a disabled vet, 0:07:25.390 --> 0:07:28.550 so I get a VA pension. Okay. And the VA 0:07:28.550 --> 0:07:33.270 pension takes care of my of all my needs. I 0:07:33.270 --> 0:07:38.710 see from a financial standpoint. Yeah. So there's 5400 is free. 0:07:39.150 --> 0:07:42.950 There's nothing there's nothing really attached to it that I 0:07:42.950 --> 0:07:45.429 have to be concerned. It takes care of all my debt. 0:07:45.950 --> 0:07:48.910 Excellent. Well, here's what I would do. You know, I 0:07:48.950 --> 0:07:52.420 like this idea of you putting this into savings. I 0:07:52.420 --> 0:07:55.660 would say, you know, at least for the next 12 months, Dennis, 0:07:55.660 --> 0:07:58.700 I'd be just piling this into savings and just let 0:07:58.700 --> 0:08:01.380 it accumulate and put it in a high yield savings account. 0:08:01.380 --> 0:08:04.860 Whether you head to our local credit union or maybe 0:08:04.860 --> 0:08:07.460 you open an account or have your granddaughter help you 0:08:07.460 --> 0:08:10.140 open an account with Adelphi Christian Banking, they're a long 0:08:10.180 --> 0:08:13.580 time underwriter here of this program, the biggest Christian credit 0:08:13.580 --> 0:08:16.540 union in the nation. Uh, you can learn more at 0:08:16.540 --> 0:08:21.300 faith fi.com/banking. The reason I mention them is they're, they're Christians. 0:08:21.300 --> 0:08:23.980 So you know that you're working with a, a credit 0:08:23.980 --> 0:08:26.500 union that shares your values as a Christ follower and 0:08:26.500 --> 0:08:29.740 supports Christian ministries out of their profits, but also they 0:08:29.740 --> 0:08:32.220 have phenomenal rates. So they're offering right now for faith 0:08:32.220 --> 0:08:38.420 by listeners up to $100,000. 4% for the next 12 months. And, 0:08:38.460 --> 0:08:41.140 you know, they have a bonus of up to $400 0:08:41.140 --> 0:08:43.620 when you open an account by using the code faith Fi. 0:08:43.660 --> 0:08:47.260 But that would be an example of the kind of, 0:08:47.260 --> 0:08:49.969 of thing I would do. And let's just let that accumulate. 0:08:49.970 --> 0:08:52.610 I mean, you'd you'd have 60,000 at the end of 0:08:52.610 --> 0:08:55.809 the year. But that's great because here's the reality. Yes, 0:08:55.809 --> 0:08:58.290 your bills are covered by that VA pension. And thank 0:08:58.290 --> 0:09:01.930 you for your service. That's awesome. But if you had 0:09:01.929 --> 0:09:05.490 a major need or you needed long term care, you know, 0:09:05.530 --> 0:09:08.810 we need additional funds there for you to be able 0:09:08.809 --> 0:09:12.730 to cover whatever happens along the way. And so I 0:09:12.730 --> 0:09:15.090 think it's really key for you to be able to 0:09:15.410 --> 0:09:18.850 go ahead and sock that money away between now and then. 0:09:18.850 --> 0:09:21.810 So I'm going to suggest that that be your next step, 0:09:21.809 --> 0:09:23.690 that you go ahead and start putting that money away 0:09:23.690 --> 0:09:26.330 in a high yield savings. Again, if you wanted to 0:09:26.330 --> 0:09:29.330 learn more about Adelphi Christian Banking, you could go to 0:09:29.370 --> 0:09:33.210 faith fi.com/banking if you don't use the internet. And I 0:09:33.210 --> 0:09:37.090 know you said you're legally blind, perhaps, um, get your 0:09:37.090 --> 0:09:39.570 daughter to help you, uh, do that, or you can 0:09:39.570 --> 0:09:48.960 call them up. And, um, that phone number is And 2228. Um, 0:09:48.960 --> 0:09:50.920 and if you hold the line, our team can give 0:09:50.920 --> 0:09:56.280 you that number. Uh (800) 347-2228. And you can write that 0:09:56.280 --> 0:09:58.720 down and give them a call. But either way I 0:09:58.720 --> 0:10:01.120 think you're on the right track here. Dennis. Thanks for 0:10:01.120 --> 0:10:04.080 your call. God bless you. Uh, let's go to Oklahoma. Conroy, 0:10:04.120 --> 0:10:05.800 you're next on the program, sir. Go ahead. 0:10:06.520 --> 0:10:09.400 I am calling on behalf of my brother. He has 0:10:09.400 --> 0:10:12.920 credit card debt, about $40,000 in credit card debt with 0:10:12.920 --> 0:10:17.040 a 30% interest rate. All right. And, um, he makes 0:10:17.040 --> 0:10:21.959 about $900 a week. And his payments just minimum payments 0:10:21.960 --> 0:10:25.440 is about $1,350 a month. Do you have any suggestions 0:10:25.440 --> 0:10:29.880 on how he could, um, pay this down? He's looked at, uh, 0:10:29.920 --> 0:10:34.120 bankruptcy or national debt relief program, different things like that. 0:10:34.160 --> 0:10:37.319 Yeah. Is he able? And I realize this is a 0:10:37.320 --> 0:10:40.560 huge challenge just because given the high proportion, this payment 0:10:40.559 --> 0:10:44.200 is to his overall income, because, you know, even if 0:10:44.200 --> 0:10:47.150 he's taken that 900 a week. And, you know, in 0:10:47.190 --> 0:10:49.150 the months where he gets an extra payment, if he's 0:10:49.150 --> 0:10:52.350 saving that to try to normalize that, he's got about 0:10:52.350 --> 0:10:56.069 4000 a month coming in. And as you said, he's 0:10:56.070 --> 0:11:01.350 spending about 1350 of that, uh, on his credit cards. 0:11:01.350 --> 0:11:04.950 Is he able to make that happen and live within 0:11:04.950 --> 0:11:10.070 his means just by eliminating every other unnecessary expense? Or 0:11:10.070 --> 0:11:11.910 is he going underwater every month? 0:11:12.550 --> 0:11:14.949 He has been going underwater. He has not been able 0:11:14.950 --> 0:11:18.190 to do it in the last 20 years. So. 0:11:18.950 --> 0:11:22.470 Okay. Do you think that it's possible? I mean, could 0:11:22.470 --> 0:11:24.750 he make a dramatic change? So let me ask a 0:11:24.750 --> 0:11:27.430 couple of questions. First is, is he married or single? 0:11:28.429 --> 0:11:30.470 He's married and he has four children. 0:11:30.710 --> 0:11:34.189 Okay. All right. And, um, yeah, I mean, so this 0:11:34.190 --> 0:11:36.470 is really challenging. I mean, the way I would typically 0:11:36.470 --> 0:11:38.830 recommend you handle this is you get into credit counseling 0:11:38.830 --> 0:11:41.870 program where the interest rates drop. And now all of 0:11:41.870 --> 0:11:45.150 a sudden through one level monthly payment without taking on 0:11:45.150 --> 0:11:48.510 new loans to replace the debt or consolidate it. We're 0:11:48.510 --> 0:11:52.910 actually making meaningful progress toward the debt reduction, but that's 0:11:52.910 --> 0:11:55.990 going to be a minimum of 3%. So, you know, 0:11:56.030 --> 0:11:59.069 you said it was I think you said was 40,000. 0:11:59.470 --> 0:12:02.430 So at 3%, I mean, possibly that payment comes down 0:12:02.429 --> 0:12:05.830 to 1200 a month. But, you know, that's obviously a 0:12:05.830 --> 0:12:07.910 real challenge. Now, if he can find a way to 0:12:07.950 --> 0:12:10.030 do that, if, you know, he and his wife are 0:12:10.030 --> 0:12:13.190 on board and they're literally saying, okay, for the next 0:12:13.190 --> 0:12:15.950 several years, we're just going to double down and, and 0:12:15.950 --> 0:12:20.670 make this happen either by eliminating every unnecessary expense, which 0:12:20.670 --> 0:12:22.910 is not going to be easy, but it can be done. Or, 0:12:23.390 --> 0:12:25.870 you know, maybe he's out getting a second job or 0:12:26.070 --> 0:12:30.709 she's working if she's not already or he's getting additional hours, 0:12:30.750 --> 0:12:33.790 you know, on his current job. I mean, getting really creative. 0:12:34.030 --> 0:12:35.790 That would be the best way to go to avoid 0:12:35.790 --> 0:12:39.949 bankruptcy because now he's actually making some meaningful progress. And 0:12:39.950 --> 0:12:42.390 so I, I would recommend he connect with our friends 0:12:42.390 --> 0:12:46.660 at Christian credit counselors.org. If he's unable or unwilling to 0:12:46.660 --> 0:12:49.140 do that, then I think, you know, at some point 0:12:49.140 --> 0:12:52.819 we're going to be in a bankruptcy situation because he 0:12:52.820 --> 0:12:55.740 may be forced into that just because of the the 0:12:55.780 --> 0:12:59.820 judgments that would likely be coming down the road against him, 0:12:59.820 --> 0:13:02.619 that could end up, you know, resulting in some garnishment 0:13:02.620 --> 0:13:06.100 and things like that when a court gets involved. Because eventually, 0:13:06.100 --> 0:13:08.740 if he's going underwater every month, the credit cards are 0:13:08.780 --> 0:13:10.939 he's going to reach the limits if he hasn't already, 0:13:10.940 --> 0:13:13.420 and he's going to be cut off and then things 0:13:13.420 --> 0:13:15.700 are going to go into arrears if they're not already, 0:13:15.700 --> 0:13:18.020 and then turned over to collection. And then kind of 0:13:18.059 --> 0:13:20.179 the process rolls from there. And there's not only the 0:13:20.179 --> 0:13:23.420 financial toll, but the emotional toll that comes from that 0:13:23.420 --> 0:13:27.780 as he begins to get hounded by those collection folks. And, 0:13:27.820 --> 0:13:31.900 you know, some of their tactics are less than scrupulous. So, uh, 0:13:31.940 --> 0:13:35.340 you know, I would recommend he, you know, really has 0:13:35.340 --> 0:13:37.500 a heart to heart, he and his wife and just say, 0:13:37.540 --> 0:13:41.140 you know, are we willing to double down and really 0:13:41.250 --> 0:13:45.090 attack this. And if they are either through cut cutting spending, 0:13:45.090 --> 0:13:48.810 getting more income coming in or both, you know, then 0:13:48.809 --> 0:13:50.929 I would head to Christian credit counselors.org. 0:13:51.929 --> 0:13:55.250 Okay. Can they handle this on their own? As far 0:13:55.250 --> 0:13:59.170 as being able to hold the creditors and cut interest 0:13:59.210 --> 0:14:01.130 rates just to make principal payments? 0:14:01.250 --> 0:14:04.050 No. They can't. I mean, in the sense that they 0:14:04.050 --> 0:14:06.809 would have to get behind and then try to go 0:14:06.809 --> 0:14:10.809 in and negotiate settlements. It's far easier to work through 0:14:10.809 --> 0:14:13.970 a credit counseling agency because these lower interest rates are 0:14:13.970 --> 0:14:17.010 already set. If you're willing to work through a nonprofit 0:14:17.010 --> 0:14:20.970 credit counseling agency like Christian Credit counselors, there's no negotiations 0:14:20.970 --> 0:14:23.450 involved and you don't have to get past due. Hey, 0:14:23.450 --> 0:14:25.570 thanks for your call, Conroy. We appreciate it. We'll be 0:14:25.570 --> 0:14:36.330 right back. So glad to have you with us today 0:14:36.330 --> 0:14:39.770 on Faith and Finance Live. Our team is away today, 0:14:39.840 --> 0:14:42.400 so don't call in. But we lined up some great 0:14:42.400 --> 0:14:44.680 questions in advance and we'll be going to those here 0:14:44.680 --> 0:14:47.280 in just a moment. Let me also remind you that 0:14:47.280 --> 0:14:49.880 the advice that I give each day on this program 0:14:49.880 --> 0:14:54.800 is general in nature. We offer principles and ideas that 0:14:54.800 --> 0:14:58.160 apply at a high level. They are not personalized. So 0:14:58.280 --> 0:15:02.040 that's why you should always seek professional financial advice. And 0:15:02.080 --> 0:15:05.240 if you'd like to find a professional who shares your values, 0:15:05.240 --> 0:15:08.040 we of course, here at Faith and Finance Live recommend 0:15:08.040 --> 0:15:11.560 the Certified Kingdom Advisor designation. These are men and women 0:15:11.560 --> 0:15:14.720 who've met high standards, and they've been trained to bring 0:15:14.720 --> 0:15:19.040 a biblical worldview of financial decision making. You can find 1@faith.com. 0:15:19.600 --> 0:15:21.800 Let's go to Georgia. Ed, how can I help you? 0:15:22.280 --> 0:15:26.800 Yes. Uh, what my question is, is I have been 0:15:26.800 --> 0:15:32.160 having a phone call from this collector. I, I, I'm assuming, uh, 0:15:32.200 --> 0:15:37.880 collecting agent for a bill that a medical bill back to, uh, 0:15:37.920 --> 0:15:43.920 13 to 15 years ago, and I retired now in 2016, 0:15:43.960 --> 0:15:49.200 and I have not received or heard anything about that bill. 0:15:49.320 --> 0:15:52.360 And I asked them to send me a copy of 0:15:52.360 --> 0:15:56.160 the bill and where I see it, and they have 0:15:56.160 --> 0:15:59.560 not sent me no copy. And that was last year 0:15:59.560 --> 0:16:04.040 when I requested it. And this year I requested again, 0:16:04.040 --> 0:16:05.760 and they called me back. 0:16:06.080 --> 0:16:09.360 Mhm. Yeah. So are you wondering just whether they have 0:16:09.360 --> 0:16:11.440 the right to do that or whether this is a 0:16:11.440 --> 0:16:13.320 scam or what is your main question? 0:16:13.800 --> 0:16:16.200 Yeah. If I owe it, I pay it, you know. 0:16:16.240 --> 0:16:17.360 Yes. Yes, sir. 0:16:17.760 --> 0:16:21.000 But, uh. Well, there are two things, I guess. One, 0:16:21.440 --> 0:16:25.160 how far back can they go back on a medical 0:16:25.160 --> 0:16:29.800 thing to collect the money and then can they garnish 0:16:29.840 --> 0:16:33.400 Social Security check. Oh, that's all I'm making now is 0:16:33.400 --> 0:16:36.520 just Social Security since I'm being retired. 0:16:37.150 --> 0:16:40.510 Yes. Okay. Yeah. Great question here. So a couple of 0:16:40.510 --> 0:16:43.350 thoughts on this. Um, you know, I think a 13 0:16:43.390 --> 0:16:47.750 year old medical bill definitely deserves a healthy dose of skepticism. 0:16:47.990 --> 0:16:51.230 Doesn't necessarily mean it's a scam, but I would say 0:16:51.550 --> 0:16:55.070 don't send any money, you know, until they provide proof. 0:16:55.070 --> 0:17:00.230 So you've done the right thing by asking for written validation, uh, 0:17:00.230 --> 0:17:04.390 showing that who was the original medical provider, the amount 0:17:04.390 --> 0:17:08.709 owed an itemization of the debt and why they believe 0:17:08.750 --> 0:17:12.630 you still owe it. Uh, federal law requires debt collectors 0:17:12.630 --> 0:17:17.470 to provide valid information. And if they're refusing to provide documentation, 0:17:17.470 --> 0:17:20.070 that's a warning sign. Now, if they're just saying, yeah, 0:17:20.070 --> 0:17:21.470 we can do that, it's just going to take a 0:17:21.470 --> 0:17:25.149 little time. Well, that's not to be unexpected. Um, but 0:17:25.150 --> 0:17:27.229 they do need to demonstrate if they are not the 0:17:27.230 --> 0:17:29.950 original medical provider. And it sounds like they're a collection 0:17:29.950 --> 0:17:33.830 agency that they can document how they have, you know, 0:17:33.869 --> 0:17:36.620 purchased the debt or now, you know, they're the one 0:17:36.619 --> 0:17:40.340 that owned the debt and therefore you would pay them. 0:17:40.820 --> 0:17:43.620 A debt can exist for many years. Every state has 0:17:43.619 --> 0:17:46.780 a statute of limitations that limits how long a collector 0:17:46.980 --> 0:17:50.180 can sue you to collect. In many states, that's somewhere 0:17:50.180 --> 0:17:53.580 between 3 and 6 years. But it does vary by 0:17:53.580 --> 0:17:55.580 the type of debt. They can ask you to pay 0:17:55.580 --> 0:17:59.940 an old debt. And you know, to your point, you 0:17:59.940 --> 0:18:02.180 want to make good on the obligation. If it is 0:18:02.180 --> 0:18:05.020 in fact yours, that's great. I would agree with that. 0:18:05.020 --> 0:18:09.060 But I think the key is making sure you validate 0:18:09.380 --> 0:18:12.460 that it is, in fact, theirs and that this is 0:18:12.460 --> 0:18:18.220 a legitimate organization debt collector. Um, in terms of your 0:18:18.220 --> 0:18:21.780 Social Security, uh, you know, if this is simply an 0:18:21.780 --> 0:18:25.460 old medical debt collected by a private debt collector, your 0:18:25.460 --> 0:18:30.419 Social Security retirement benefits are generally protected from garnishment. The 0:18:30.420 --> 0:18:34.139 only exceptions to that would be federal tax debts. Federal 0:18:34.250 --> 0:18:39.930 student loans, child support and alimony or court ordered restitution. Um, 0:18:39.930 --> 0:18:46.930 so private creditors generally cannot garnish garnish your Social Security benefits. So, um, 0:18:46.930 --> 0:18:49.409 you know, there may be a caveat to that in, 0:18:49.410 --> 0:18:52.450 in the sense that, um, you know, if it's deposited 0:18:52.450 --> 0:18:57.050 to your bank account, uh, banks automatically protect two months 0:18:57.050 --> 0:19:00.889 worth of directly deposited benefits. Um, but if you've mixed 0:19:00.890 --> 0:19:03.890 those with other money or allowed them to accumulate beyond that, 0:19:03.890 --> 0:19:06.370 it can become more complicated. But I would just say, 0:19:06.609 --> 0:19:08.490 you know, if this is a 13 year old debt, 0:19:08.490 --> 0:19:11.409 I would wait for that validation and then proceed from there. 0:19:12.090 --> 0:19:15.890 Okay, I appreciate it. You know, I want to pay 0:19:15.890 --> 0:19:19.129 my bills and pay it. You know, I, I went 0:19:19.130 --> 0:19:23.889 to the hospital and checked with them, the financial department. 0:19:24.130 --> 0:19:28.930 And from 2000 up to now, I owe nothing to them. 0:19:29.490 --> 0:19:33.250 You know, there is no debt outstanding with them. So 0:19:33.770 --> 0:19:38.290 I'm assuming they had to sell the debt to somebody else. 0:19:38.609 --> 0:19:41.850 I don't know. There's so much scam out there. I 0:19:41.850 --> 0:19:43.130 just want to make sure. 0:19:43.530 --> 0:19:47.290 Absolutely. And you're doing the right thing here, Ed, because again, 0:19:47.290 --> 0:19:50.050 if the, uh, if the medical provider is saying that 0:19:50.050 --> 0:19:52.610 account was paid in full or there's a zero balance, 0:19:52.770 --> 0:19:55.490 I would proceed with a lot of caution before you 0:19:55.490 --> 0:19:59.250 do anything. Don't admit, you know, to owing it. And, uh, 0:19:59.250 --> 0:20:02.130 let's make sure they can provide some documentation that you 0:20:02.130 --> 0:20:06.890 could also verify with that, uh, original medical provider. And 0:20:06.890 --> 0:20:10.050 until that time, I just kind of sit on that. Hey, 0:20:10.050 --> 0:20:13.090 we appreciate your call today. God bless you. Uh, Lucille 0:20:13.090 --> 0:20:14.530 is in Illinois. Go right ahead. 0:20:15.330 --> 0:20:18.330 Thank you so much for taking my call. I have 0:20:18.330 --> 0:20:21.970 an opportunity to do a three year special catch up. Yes. 0:20:22.090 --> 0:20:24.850 So I'm going to be able to contribute, like double 0:20:25.170 --> 0:20:29.890 what you contribute. I'm 58, and I was wondering, what 0:20:29.890 --> 0:20:33.120 should I be considering? Should I just do it all 0:20:33.160 --> 0:20:38.400 as 457 or because within the 457 I have an 0:20:38.400 --> 0:20:42.240 opportunity to invest some of that as Roth. I don't 0:20:42.240 --> 0:20:44.920 have a lot of balance on my Roth account. What 0:20:44.920 --> 0:20:48.040 should I be considering to split it? Or am I 0:20:48.080 --> 0:20:50.879 better off doing all of it as deferred? 0:20:51.080 --> 0:20:54.120 Yeah. Yeah. You know, I've mentioned before there was a 0:20:54.119 --> 0:20:57.439 study done by some researchers that looked at thousands of 0:20:57.760 --> 0:21:02.120 actual retirees to determine what is the optimal mix between 0:21:02.280 --> 0:21:07.840 tax free and tax deferred retirement accounts. Once they got 0:21:07.840 --> 0:21:10.440 to retirement and started drawing it down. And what they 0:21:10.440 --> 0:21:12.959 found is and this was just based on the study 0:21:12.960 --> 0:21:17.359 they did, that the optimal scenario was if you take 0:21:17.359 --> 0:21:21.119 your age and you add 20 to it, so you're 58, 0:21:21.160 --> 0:21:24.320 add 20 to it, that's 78 that that would be 0:21:24.320 --> 0:21:26.919 the portion you should put in traditional. And then you 0:21:26.920 --> 0:21:29.920 put the rest in the Roth. And the idea was 0:21:30.030 --> 0:21:32.550 that you're probably at the peak of your earnings years, 0:21:32.550 --> 0:21:35.270 so you could really benefit from the deduction. But the 0:21:35.270 --> 0:21:37.390 fact that we don't know what tax rates are going 0:21:37.430 --> 0:21:39.750 to be in the future, you at least want something 0:21:39.750 --> 0:21:42.590 going into Roth. So whether you do 80 to traditional 0:21:42.790 --> 0:21:46.709 or 70, you know, I think somewhere between 70 and 0:21:46.710 --> 0:21:50.109 80 to the traditional and 20 to 30 to the 0:21:50.109 --> 0:21:53.149 Roth is probably at least based on this study, an 0:21:53.190 --> 0:21:56.350 optimal scenario for you? I hope that helps. Lucille, thanks 0:21:56.350 --> 0:22:05.030 for your call back after this. Stay with us. I'm 0:22:05.030 --> 0:22:07.950 so thankful you're joining us today on Faith and Finance Live. 0:22:07.950 --> 0:22:10.630 I'm Rob West. Hey, just a quick reminder, our team 0:22:10.630 --> 0:22:13.390 is away from the studio today, so don't call in. 0:22:13.390 --> 0:22:15.630 But in just a few moments, we're going to get 0:22:15.630 --> 0:22:18.110 to some questions that we lined up in advance that 0:22:18.109 --> 0:22:21.270 I know you'll find very interesting. But let me take 0:22:21.270 --> 0:22:24.189 a moment just to invite you first to be a 0:22:24.190 --> 0:22:26.949 supporter of this ministry here at Faith VI. You know, 0:22:26.990 --> 0:22:29.780 we bring you this broadcast every day as a listener, 0:22:29.780 --> 0:22:34.619 supported ministry only because of your generous support. So maybe 0:22:34.619 --> 0:22:38.220 you listen regularly. Perhaps you count on this program. Maybe 0:22:38.220 --> 0:22:40.420 you've been able to apply some of the wisdom from 0:22:40.420 --> 0:22:43.859 God's Word that you've heard in your financial life, or 0:22:43.980 --> 0:22:47.220 it's just help you to be that wise and faithful steward, 0:22:47.220 --> 0:22:49.740 and you'd like to be a part of our team. Well, 0:22:49.740 --> 0:22:52.260 one way you can do that is by investing in 0:22:52.260 --> 0:22:54.980 this work through a one time gift, or even by 0:22:54.980 --> 0:22:58.780 becoming a faithful partner. I just invite you to join 0:22:58.780 --> 0:23:02.140 us on this journey. When you head to faithful.com and 0:23:02.140 --> 0:23:04.500 click give, a gift of any amount would be a 0:23:04.500 --> 0:23:08.139 big help. Again, that's faith v.com and just click give 0:23:08.140 --> 0:23:11.140 and let me say thank you in advance. Your gift 0:23:11.140 --> 0:23:14.300 will make a huge difference. Now let's head back to 0:23:14.340 --> 0:23:17.660 the phone calls we have lined up. Let's head to Mississippi. Roy, 0:23:17.700 --> 0:23:18.500 how can I help? 0:23:19.220 --> 0:23:22.260 Yes. Uh, I listen to you guys a lot. I 0:23:22.260 --> 0:23:26.810 have a goofy kind of question. My son has Um, 0:23:27.010 --> 0:23:33.970 started a plan through his own efforts, uh, with the, um, 0:23:34.250 --> 0:23:39.250 various securities out there, uh, that he's been involved with 0:23:39.290 --> 0:23:43.170 for several years. And he was giving me a list 0:23:43.170 --> 0:23:47.650 of some of the stocks, Amazon and, uh, oh, Cisco, 0:23:47.650 --> 0:23:51.490 all kinds of, uh, tech stuff. And he's garnered about 0:23:51.490 --> 0:23:54.490 $1 million doing this, but he's asking me if I'm 0:23:54.490 --> 0:23:59.090 interested in joining and throwing the money I have into 0:23:59.130 --> 0:24:04.409 his plan. And, uh, he jokingly, he says, I want 0:24:04.410 --> 0:24:10.130 people that like to not spend money. And, uh, I'm, 0:24:10.170 --> 0:24:13.650 I'm kind of throwing that around in my mind. The 0:24:13.650 --> 0:24:17.170 thing that concerns me or one thing anyway, is, uh, 0:24:17.930 --> 0:24:23.050 he's not a real strong Christian. And, uh, the other 0:24:23.050 --> 0:24:26.610 is what might be the plus and minuses of putting 0:24:26.609 --> 0:24:30.330 my money in a joint account with him and other 0:24:30.330 --> 0:24:33.450 friends of his, and like his son and his daughter 0:24:33.450 --> 0:24:37.370 and and that kind of thing. And he's curious if 0:24:37.369 --> 0:24:40.730 I want to throw my 401 in there, and I 0:24:40.730 --> 0:24:43.450 know there's going to be penalties if I do that. 0:24:43.450 --> 0:24:45.609 So what what might the penalties be? 0:24:46.170 --> 0:24:49.810 Yeah. Well, yeah, a lot there. Um, let's, let's kind 0:24:49.850 --> 0:24:52.490 of walk through this. There wouldn't be any early withdrawal penalties, 0:24:52.490 --> 0:24:56.649 but you could trigger a massive tax consequence by pulling 0:24:56.650 --> 0:24:58.850 that money out of the 401 K, because it would 0:24:58.850 --> 0:25:01.490 all be added to your taxable income in the year 0:25:01.490 --> 0:25:04.729 that you would draw it as ordinary income. And so, 0:25:04.770 --> 0:25:06.810 you know, that could certainly push you up into a 0:25:06.810 --> 0:25:09.889 higher tax bracket. It means a pretty big, you know, 0:25:09.930 --> 0:25:14.090 bill and you lose that tax deferred growth moving forward. 0:25:14.090 --> 0:25:18.690 So I wouldn't I wouldn't recommend that. I also want 0:25:18.730 --> 0:25:21.489 to just encourage you to be cautious here. You know, 0:25:21.530 --> 0:25:25.840 whenever family and investments intersect, I think at the very 0:25:25.840 --> 0:25:28.720 least it's it's wise just to proceed with caution and 0:25:28.720 --> 0:25:32.359 slow down because, you know, you certainly want to understand 0:25:32.359 --> 0:25:36.200 the risks, the liquidity, meaning if you change your mind, 0:25:36.200 --> 0:25:39.400 can you get out the fees, uh, you know, and 0:25:39.400 --> 0:25:42.440 whether this investment is appropriate for your stage of life. 0:25:42.440 --> 0:25:45.320 The last thing we would want is for this to, 0:25:45.560 --> 0:25:48.640 you know, go a direction other than what you expect 0:25:48.640 --> 0:25:50.879 or he expects. I'm not saying he's trying to do 0:25:50.880 --> 0:25:54.480 anything disingenuous here, but when it comes to investments, it's 0:25:54.480 --> 0:25:58.240 going to be beyond his control, the ultimate outcome. And 0:25:58.359 --> 0:26:00.280 I think, you know, the last thing we would want 0:26:00.280 --> 0:26:04.639 is some sort of relational collateral damage here. Um, or 0:26:04.800 --> 0:26:06.879 for you to be in a position where you have 0:26:06.880 --> 0:26:10.600 harmed yourself financially, you know, moving forward, given that this 0:26:10.600 --> 0:26:13.840 is your nest egg, I appreciate your desire to be 0:26:13.840 --> 0:26:17.040 supportive and, and, uh, you know, not turn him down. 0:26:17.040 --> 0:26:19.040 And yet at the same time, you know, this is 0:26:19.040 --> 0:26:23.109 a pretty significant decision with real tax implications and real, 0:26:23.470 --> 0:26:27.869 you know, sustainability, because your biggest risk in this season 0:26:27.910 --> 0:26:30.670 of life is what's called longevity risk that you could 0:26:30.710 --> 0:26:34.630 outlive your money, especially if you know, you take more 0:26:34.869 --> 0:26:38.710 risk than is appropriate and you lose some of it. Um, 0:26:38.750 --> 0:26:41.389 do you know what type of investment this is? It 0:26:41.430 --> 0:26:43.989 is a, is it a private investment or is it 0:26:43.990 --> 0:26:46.790 something that's publicly traded on the stock market? 0:26:47.270 --> 0:26:51.550 It's it's private. He doesn't trust anyone else out there. 0:26:51.550 --> 0:26:55.950 So it's all money. He's invested over the years. And 0:26:56.190 --> 0:26:58.550 we were with the S&P for a while. But he 0:26:58.550 --> 0:27:00.790 got out of that. And of course he's regretted doing 0:27:00.790 --> 0:27:02.270 that now. But um. 0:27:02.430 --> 0:27:02.870 Yeah. 0:27:02.910 --> 0:27:08.550 Yeah. It's it's mainly just a private, uh, individual kind 0:27:08.550 --> 0:27:11.950 of thing. He's created himself, you know. 0:27:12.230 --> 0:27:16.629 Yeah. And that just adds more risk. Not again, not 0:27:16.630 --> 0:27:20.389 that he's not skilled as a, as an investment selection, 0:27:20.430 --> 0:27:24.939 you know, person A as a stock picker, so to speak. Um, 0:27:25.020 --> 0:27:28.220 but whenever you go into a private investment, there is 0:27:28.220 --> 0:27:33.300 less regulation. Uh, often, you know, these private investments, uh, 0:27:33.300 --> 0:27:37.300 lack any liquidity. Um, and so, you know, your ability 0:27:37.300 --> 0:27:42.300 to get out of it is going to be significantly less. Um, so, 0:27:42.340 --> 0:27:44.020 you know, I would stay away from this. I mean, 0:27:44.020 --> 0:27:47.140 if you wanted to go into it again, um, I'd 0:27:47.180 --> 0:27:51.420 want to try to keep it inside the, uh, retirement structure, 0:27:51.460 --> 0:27:54.940 the pre-tax structure, which would mean that you could use a, 0:27:54.980 --> 0:27:59.020 what's called a self-directed IRA. You could do a search 0:27:59.020 --> 0:28:03.540 on that. You'd have to find a self-directed IRA custodian. Um, and, 0:28:03.540 --> 0:28:06.419 and they would often allow you to invest, but I 0:28:06.420 --> 0:28:10.619 would keep it probably no more than 5% of my investment. Um, 0:28:10.900 --> 0:28:13.859 just because again, this is not the season of life 0:28:13.859 --> 0:28:18.540 for you to both mix family and money and especially 0:28:18.540 --> 0:28:22.379 in a private investment, Um, you know, the ownership structure, 0:28:22.380 --> 0:28:25.940 the liquidity, the creditor risk, uh, you know, just all 0:28:25.980 --> 0:28:30.540 of these things, potential family conflict are a big downside, uh, 0:28:30.540 --> 0:28:34.940 in terms of a, you know, a joint tenancy situation. Um, 0:28:34.940 --> 0:28:37.100 you know, I would stay away from that as well. 0:28:37.100 --> 0:28:42.020 That's going to create gift tax considerations, estate planning issues. Um, 0:28:42.060 --> 0:28:46.580 it just adds a whole lot of complexity unnecessarily. Um, 0:28:46.580 --> 0:28:49.060 so I would just keep everything in your name alone. 0:28:49.260 --> 0:28:52.620 I would probably encourage you just to avoid this altogether. 0:28:52.620 --> 0:28:55.380 But if you did do it, I would do it only, 0:28:55.420 --> 0:28:57.580 you know, no more than 5%. And I would use 0:28:57.580 --> 0:29:01.260 a self-directed IRA to keep it in that tax deferred environment. 0:29:02.620 --> 0:29:05.820 Okay, fine. Thank you so much. I just wanted to 0:29:05.820 --> 0:29:09.500 get your your position on that kind of thing. I 0:29:09.500 --> 0:29:13.100 know the difficulties with family. Uh, you never think anything 0:29:13.140 --> 0:29:16.380 is going to crop up, and yet it always seems 0:29:16.380 --> 0:29:19.970 to rear its ugly head at some point. But thank 0:29:19.970 --> 0:29:20.290 you again. 0:29:20.330 --> 0:29:22.930 Unfortunately it does, but I appreciate you. Roy, thanks for 0:29:22.930 --> 0:29:24.570 calling today. Let us know if we can help further 0:29:24.570 --> 0:29:27.850 along the way. Let's go to let's see. We'll head 0:29:27.850 --> 0:29:30.050 down to Louisiana and how can I help? 0:29:30.930 --> 0:29:33.930 I, um, I have a problem that I've been trying 0:29:33.930 --> 0:29:37.690 to look into. Um, I needed some more social security 0:29:37.730 --> 0:29:41.090 quarters to start withdrawing my social security. I need 12 0:29:41.090 --> 0:29:44.530 more quarters. So I got a little job as a 0:29:44.530 --> 0:29:50.050 household manager. Now, my problem is I'm trying to figure out, 0:29:50.050 --> 0:29:55.250 should I be hired as an hourly employee, a household employee, 0:29:55.250 --> 0:29:59.290 or an independent contractor with hourly pay? Mhm. And I 0:29:59.290 --> 0:30:02.610 know there are such thing as nanny taxes. And how 0:30:02.610 --> 0:30:06.810 would the IRS look at this position and what should 0:30:06.810 --> 0:30:07.210 I do? 0:30:07.650 --> 0:30:11.490 Yeah. Great question. Uh, yeah. So as you look at this, 0:30:11.530 --> 0:30:15.090 you know, the key issue is that the job classification 0:30:15.250 --> 0:30:20.240 should reflect the actual working relationship. Not which choice produces 0:30:20.240 --> 0:30:22.680 more Social Security credits. So if your goal is to 0:30:22.720 --> 0:30:26.000 earn credits, you need to make sure your wages are 0:30:26.000 --> 0:30:31.000 properly reported and that Social Security and Medicare taxes are paid, 0:30:31.000 --> 0:30:34.640 whether you're an employee or an independent contractor. Really depends 0:30:34.640 --> 0:30:37.680 on the nature of the job, not necessarily which one 0:30:37.680 --> 0:30:40.760 you'd prefer, but in either case, you can achieve those 0:30:40.760 --> 0:30:44.480 credits as long as it's reported and taxes are paid properly. 0:30:44.520 --> 0:30:46.400 Hang on the line. We'll talk a bit more. Just 0:30:46.400 --> 0:30:49.240 a quick reminder, we're not here today, so don't call in. 0:30:49.240 --> 0:30:51.080 But we're going to head to a break and much 0:30:51.080 --> 0:31:05.160 more coming just after this. Stay with us. Thanks for 0:31:05.160 --> 0:31:07.600 joining us today on Faith and finance live here in 0:31:07.600 --> 0:31:10.480 our final segment of the broadcast today, let me remind you, 0:31:10.480 --> 0:31:12.800 our team is not here, so don't call in. But 0:31:12.800 --> 0:31:15.320 we lined up some great questions in advance. We'll get 0:31:15.320 --> 0:31:18.750 to those in just a moment. Before we do, let 0:31:18.750 --> 0:31:22.150 me remind you, if you haven't downloaded the Faith Fi app, 0:31:22.150 --> 0:31:24.550 we'd love for you to check it out. It's got 0:31:24.550 --> 0:31:27.150 three sections in it. The first is the money management 0:31:27.150 --> 0:31:31.670 system based on Larry Burkett's digital envelope system. It helps 0:31:31.670 --> 0:31:33.590 you manage God's money in a way where you know 0:31:33.590 --> 0:31:37.350 exactly what's left in each envelope at any point during 0:31:37.350 --> 0:31:40.030 the month. There's also our learn tab, where you can 0:31:40.030 --> 0:31:43.550 access the best content in biblical finance to grow in 0:31:43.550 --> 0:31:46.550 your understanding of God's way of handling money and our 0:31:46.550 --> 0:31:50.190 community where you can post questions, get comments and ideas 0:31:50.190 --> 0:31:53.710 from other stewards on the journey. So download it today 0:31:53.710 --> 0:31:58.550 on our website Faith fi.com. Just click app. Before the break, 0:31:58.550 --> 0:32:01.390 we were talking to Anne and Louisiana. She's looking to 0:32:01.430 --> 0:32:05.670 achieve the number of credits necessary to be entitled to 0:32:05.710 --> 0:32:09.470 a Social Security benefit. She's not quite there yet, and 0:32:09.470 --> 0:32:14.790 she has recently engaged as a household manager or is 0:32:14.790 --> 0:32:18.670 about to. Is wondering how should she structure that? To 0:32:18.710 --> 0:32:21.350 be sure that she earns Social Security credits. And I 0:32:21.350 --> 0:32:25.750 was saying, uh, before the break and that really, uh, the, the, 0:32:25.950 --> 0:32:30.830 the relationship between you and this person, uh, who's asking 0:32:30.830 --> 0:32:35.430 you to become a household manager is not as much about, uh, 0:32:35.470 --> 0:32:38.710 getting the credits and really more about what is the 0:32:38.710 --> 0:32:45.229 right job classification that reflects the actual working relationship. So, uh, 0:32:45.270 --> 0:32:48.470 you know, if you are, you know, just working for 0:32:48.590 --> 0:32:54.070 one employer and they're controlling what work is done and 0:32:54.070 --> 0:32:57.550 how it's done, then that's going to be a household employee. 0:32:57.870 --> 0:33:00.310 They would need to withhold and pay the Social Security 0:33:00.310 --> 0:33:04.110 and Medicare, and those wages would count. If you're truly 0:33:04.110 --> 0:33:07.990 operating independently and you set your own methods, you serve 0:33:07.990 --> 0:33:11.430 multiple clients, you're controlling how the work is performed. Well, 0:33:11.430 --> 0:33:15.460 then that would be in line with an independent contractor relationship, 0:33:15.460 --> 0:33:19.020 but you'd have to pay the self-employment tax. But that 0:33:19.020 --> 0:33:22.020 would then also earn Social Security credits. So, you know, 0:33:22.060 --> 0:33:26.220 the relationship you have and some of those key factors, 0:33:26.460 --> 0:33:31.459 you know, like one or multiple, you know, relationships and 0:33:32.020 --> 0:33:34.460 whether you control what you do and your hours and 0:33:34.460 --> 0:33:37.380 so forth or they do is ultimately what's going to 0:33:37.380 --> 0:33:40.260 determine the, the relationship that you have. But does that 0:33:40.260 --> 0:33:41.020 all make sense? 0:33:42.620 --> 0:33:45.900 Uh, yes. Um, the thing is, I will only have 0:33:45.940 --> 0:33:48.700 I want to work as an independent contractor, but I 0:33:48.700 --> 0:33:53.260 only have one client, but that's catapult me into the 0:33:53.260 --> 0:33:55.220 employee category. 0:33:55.980 --> 0:33:58.700 Yeah. So that's, that's going to be a challenge there 0:33:58.700 --> 0:34:01.459 because I, I certainly understand that you want to be 0:34:01.460 --> 0:34:04.100 independent because then you can take advantage of the deductions 0:34:04.100 --> 0:34:07.900 and so forth of being self-employed, although you would have 0:34:07.900 --> 0:34:12.690 both sides of Social security. Um, one client doesn't automatically 0:34:13.650 --> 0:34:17.250 disqualify you. I would just say, you know, you can 0:34:17.250 --> 0:34:20.650 have one client and still be an independent contractor, but 0:34:20.650 --> 0:34:23.650 the IRS is primarily going to look at who controls 0:34:23.650 --> 0:34:27.090 the work. So if you decide how the work is done, 0:34:27.090 --> 0:34:30.250 you provide your own tools, you set your own schedule, 0:34:30.410 --> 0:34:35.690 you operate independently. You may qualify as an independent contractor. If, 0:34:35.690 --> 0:34:39.009 on the other hand, the family directs your work and 0:34:39.010 --> 0:34:43.650 your hours and your methods, you're more likely a household employee. 0:34:44.050 --> 0:34:47.410 So I would, uh, you know, get with a CPA 0:34:47.730 --> 0:34:52.010 who can really just evaluate your situation here and advise 0:34:52.010 --> 0:34:54.010 you on how to set it up if you decide 0:34:54.010 --> 0:34:57.690 to go. Um, and the CPA believes you can be 0:34:57.690 --> 0:35:02.410 recognized as an independent contractor based on your working relationship, 0:35:02.530 --> 0:35:04.370 then you're going to want to make sure you keep 0:35:04.370 --> 0:35:07.569 separate books and that there's a clear line between your 0:35:07.570 --> 0:35:11.560 personal finances and your business. that's going to ensure that 0:35:11.560 --> 0:35:15.880 you are able to deduct business expenses without being challenged 0:35:15.880 --> 0:35:18.080 by the IRS. But you've got to be able to 0:35:18.120 --> 0:35:22.240 document things separately between your personal and your business activities. 0:35:22.880 --> 0:35:26.280 Okay. Well, that sounds good. Do you know any maybe 0:35:26.320 --> 0:35:29.640 off the air, you all can recommend us a certified 0:35:29.640 --> 0:35:33.000 Kingdom advisor here in the Louisiana area for me. 0:35:33.040 --> 0:35:37.080 Yeah. If you go to find acka.com, you could find 0:35:37.080 --> 0:35:40.239 a certified Kingdom advisor, and then you could ask for 0:35:40.239 --> 0:35:43.839 a referral to a small business accountant or CPA. They 0:35:43.840 --> 0:35:46.080 would all have one that they typically work with. So 0:35:46.080 --> 0:35:49.600 just go to find acka.com. You can do a zip 0:35:49.600 --> 0:35:52.839 code search. And thanks for your call today. Lord bless you. Uh, 0:35:52.840 --> 0:35:55.080 let's go to Philadelphia. Hi, John. How can I help? 0:35:55.640 --> 0:35:59.760 Yes, hello. Uh, this is an IRS question, and and 0:35:59.800 --> 0:36:04.680 IRA question. My wife has an IRA, and, uh, we 0:36:04.680 --> 0:36:09.310 take out required minimum distributions each year. Uh, last year. 0:36:09.469 --> 0:36:13.550 Among the 15 or 20 that we took out, one 0:36:13.550 --> 0:36:18.070 went to our church, and initially our church did not 0:36:18.070 --> 0:36:23.430 want a receipt for a required minimum distribution. We went 0:36:23.430 --> 0:36:25.989 back to the church and said, well, we would need 0:36:25.989 --> 0:36:30.149 a letter saying the church was a 501 C three. 0:36:30.230 --> 0:36:33.310 We got that and then we sent the check to 0:36:33.350 --> 0:36:36.630 them again, and the church came back a second time 0:36:36.630 --> 0:36:41.830 stating in all capital letters. They acknowledged receipt of the 0:36:42.030 --> 0:36:47.510 required minimum distribution, but they would not accept it as 0:36:47.510 --> 0:36:53.350 a tax deductible contribution. And it and it could not 0:36:53.350 --> 0:36:57.270 be reported on the tax form. And, you know, all 0:36:57.310 --> 0:37:01.910 of the other 501 C3S either either receded it or 0:37:01.910 --> 0:37:06.310 receded it as being received from a required minimum distribution. 0:37:06.590 --> 0:37:08.629 What's the tax law, actually? 0:37:08.910 --> 0:37:12.549 Mhm. Yeah. Interesting. Uh, I'm not sure why they're saying that. 0:37:12.550 --> 0:37:16.870 Because the with the. So was this a qualified charitable distribution? 0:37:16.870 --> 0:37:17.750 Is that what it is? 0:37:18.190 --> 0:37:18.830 Yes. 0:37:18.870 --> 0:37:22.750 Okay. Yeah. Here's what they might be referring to is 0:37:23.030 --> 0:37:26.509 see the the idea behind the qualified charitable distribution is 0:37:26.510 --> 0:37:30.350 you don't get to double dip. So the benefit here 0:37:30.350 --> 0:37:33.709 is that the amount coming out of the IRA and 0:37:33.710 --> 0:37:39.470 going to the charity is excluded from your taxable income, 0:37:39.469 --> 0:37:43.750 which every other distribution from an IRA is included in 0:37:43.750 --> 0:37:47.950 your taxable income for the year except a qualified charitable distribution. 0:37:47.950 --> 0:37:52.149 So the benefit to you is you get to exclude 0:37:52.150 --> 0:37:55.310 it and not add it to your taxable income from 0:37:55.310 --> 0:37:59.910 the year. You do not, though, get to also take 0:37:59.910 --> 0:38:02.790 it as a charitable deduction. And so that's probably what 0:38:02.790 --> 0:38:05.989 your church is referring to is they're just. And this 0:38:06.100 --> 0:38:08.460 is ultimately not between you and them. It's between you 0:38:08.460 --> 0:38:10.859 and the IRS. So they really don't have a say 0:38:10.860 --> 0:38:13.100 in this. But what they're probably trying to do is 0:38:13.100 --> 0:38:17.460 just make sure you're clear that as that money comes out, 0:38:17.500 --> 0:38:20.060 you already got the benefit by it not being added 0:38:20.060 --> 0:38:22.540 to your taxable income for the year, which hopefully allowed 0:38:22.540 --> 0:38:25.299 you to give more because you didn't have to worry 0:38:25.300 --> 0:38:28.180 about the tax liability, but you do not. Then to 0:38:28.219 --> 0:38:30.340 get get to add on top of that, a a 0:38:30.420 --> 0:38:35.660 charitable deduction against income, federal income tax. Does that make sense? 0:38:36.340 --> 0:38:40.140 Uh, yes it does. And I appreciate you taking your time. 0:38:40.140 --> 0:38:44.140 And I do appreciate your show and the Lord bless you. 0:38:44.620 --> 0:38:47.940 Okay. God bless you, John. Uh, I love the idea 0:38:47.940 --> 0:38:50.460 of the qualified charitable distribution. I think you were right 0:38:50.500 --> 0:38:52.700 on to do it. And again, it's the only way 0:38:52.700 --> 0:38:55.860 to get that money out of that IRA and not 0:38:55.860 --> 0:39:00.140 have any tax liability associated with it. But yeah, at 0:39:00.180 --> 0:39:02.819 that point, though, it is not it does not qualify 0:39:02.820 --> 0:39:07.770 as a charitable Contribution for a further tax deduction. We 0:39:07.770 --> 0:39:11.530 appreciate your call. Call any time. We'll go out to Texas. Virginia. 0:39:11.530 --> 0:39:12.250 How can I help? 0:39:12.930 --> 0:39:15.770 Hi. Thank you so much for taking my call. You're 0:39:15.770 --> 0:39:20.450 such a wonderful blessing. Thank you. Um, I have a 0:39:20.489 --> 0:39:25.450 student loan that I did not pay on for a while, 0:39:25.450 --> 0:39:30.410 so it has has some unpaid interest and, but I have, um, 0:39:30.810 --> 0:39:33.649 now been making payments and I've been putting squirreling money 0:39:33.650 --> 0:39:36.810 away and I'm able to pay off that interest, the 0:39:36.810 --> 0:39:40.489 outstanding interest so that because I need to do that 0:39:40.489 --> 0:39:43.610 right before I can, it'll even my payments will even 0:39:43.610 --> 0:39:45.410 touch the principal. Is that correct? 0:39:46.170 --> 0:39:48.690 Yeah. I mean, so, you know, if you have the 0:39:48.690 --> 0:39:52.690 opportunity to pay down accrued interest, that can definitely be 0:39:52.690 --> 0:39:55.810 a wise move because it reduces the amount of interest 0:39:56.130 --> 0:40:00.370 that may continue to accumulate. Um, I would say, you know, 0:40:00.410 --> 0:40:03.250 that's a generally a good idea. Are these federal or 0:40:03.320 --> 0:40:04.520 private student loans? 0:40:05.440 --> 0:40:06.080 Federal. 0:40:06.400 --> 0:40:10.080 Okay. All right. Um, yeah. And so is your plan 0:40:10.080 --> 0:40:12.680 to pay off the accumulated interest and then just keep 0:40:12.680 --> 0:40:15.400 paying on them, you know, monthly or what do you 0:40:15.400 --> 0:40:16.240 think in moving forward? 0:40:16.280 --> 0:40:21.520 Yes. Yes. So now that um the deferments have been 0:40:21.960 --> 0:40:24.440 been lifted, the I mean I was going to make 0:40:24.440 --> 0:40:29.120 payments anyway but definitely start making payments. Um continue to 0:40:29.120 --> 0:40:32.160 make payments monthly. But I noticed when I called them also, 0:40:32.560 --> 0:40:36.919 um they had said that, you know, if I just 0:40:36.920 --> 0:40:40.520 make say $200 a month, it's not really going to 0:40:40.719 --> 0:40:43.680 because I have so much interest accrued, it's not even 0:40:43.680 --> 0:40:46.000 going to bring down any of the principal. I'm really 0:40:46.000 --> 0:40:49.000 just paying off the interest because that's where when I 0:40:49.040 --> 0:40:52.120 send in a payment, they first send it to the interest. 0:40:52.400 --> 0:40:56.000 Yes, yes. And that's why you want, uh, that's why 0:40:56.000 --> 0:40:58.319 you want to do this. And so I think going 0:40:58.360 --> 0:41:01.399 ahead and paying off that accrued interest. Well done on 0:41:01.400 --> 0:41:04.400 putting that money aside and having the ability to do that. 0:41:04.400 --> 0:41:06.560 And now I think from here, you know, once you 0:41:06.560 --> 0:41:08.880 get that down, obviously if you can send a little 0:41:08.880 --> 0:41:12.399 extra every month, great. But at the very least, let's 0:41:12.400 --> 0:41:14.719 get that accrued interest from the deferment out of the 0:41:14.719 --> 0:41:16.960 way and then get you, you know, paying on a 0:41:16.960 --> 0:41:20.640 monthly basis. And again, if we can add something to it, 0:41:20.640 --> 0:41:21.920 that would be excellent. 0:41:22.880 --> 0:41:26.520 Okay. And then one other quick question. Someone had told 0:41:26.520 --> 0:41:30.280 me that they, what they did for with their child 0:41:30.320 --> 0:41:34.760 had a student loan is they refinanced it through a, 0:41:34.880 --> 0:41:40.600 through SoFi as a personal loan. Um, and they were 0:41:40.600 --> 0:41:43.240 telling me that I should do that, but I don't, 0:41:43.239 --> 0:41:45.920 I feel safer to have it as a federal, I 0:41:45.920 --> 0:41:49.360 don't know, just kind of feel like it's just to 0:41:49.400 --> 0:41:52.680 keep it as a federal loan there at six and 7%, 0:41:52.719 --> 0:41:56.560 because I have two different loans that have been federal 0:41:56.560 --> 0:42:00.350 loans that are consolidated. So one's at 6% and 6% 0:42:00.350 --> 0:42:02.630 wins at seven. And then when I went on to 0:42:02.630 --> 0:42:05.069 the sofa just to check it out, they don't even 0:42:05.070 --> 0:42:07.230 let you see any sort of percentages. You have to 0:42:07.230 --> 0:42:09.629 give them all your information, date of birth and all that. 0:42:09.630 --> 0:42:10.790 And I didn't want to do that. 0:42:10.790 --> 0:42:14.350 So yeah, well, here's the thing. I'd be very cautious 0:42:14.350 --> 0:42:16.710 about that because, you know, you're going to give up 0:42:16.710 --> 0:42:20.310 those valuable federal benefits if you need them down the road, 0:42:20.310 --> 0:42:24.630 like income driven repayment for deferment, forbearance. You've already taken 0:42:24.630 --> 0:42:27.069 advantage of it. If you needed it again in the future, 0:42:27.190 --> 0:42:30.430 you'd lose that. And you're likely not going to get 0:42:30.469 --> 0:42:34.350 a meaningfully lower interest rate on a personal loan without 0:42:34.350 --> 0:42:37.710 any kind of collateral that would justify it. So I 0:42:37.710 --> 0:42:39.509 would just stick tight with what you've got on the 0:42:39.510 --> 0:42:40.310 federal side. 0:42:40.550 --> 0:42:42.910 Thank you. Get the confirmation. God bless you, Rob. 0:42:42.950 --> 0:42:45.590 All right. Thank you, Virginia, I appreciate it. Hey, faith 0:42:45.590 --> 0:42:48.350 in Finance Live is a Ministry of Faith Fi and 0:42:48.350 --> 0:42:50.989 Moody Radio. Thanks to my team today. And we'll see 0:42:50.989 --> 0:42:52.990 you tomorrow. Come back and join us then. Bye bye.