1 00:00:08,440 --> 00:00:11,479 S1: The simple believe everything but the prudent. Give thought to 2 00:00:11,520 --> 00:00:16,119 S1: their steps. Proverbs 1415. Hi, I'm Rob West. In a 3 00:00:16,120 --> 00:00:20,160 S1: world where scams are increasingly clever, Scripture reminds us that 4 00:00:20,160 --> 00:00:23,919 S1: precaution is a form of stewardship. Today, we're talking about 5 00:00:23,920 --> 00:00:28,640 S1: something that isn't just practical. It's spiritual. Protecting the resources 6 00:00:28,640 --> 00:00:31,040 S1: God has entrusted to us. And then it's on to 7 00:00:31,080 --> 00:00:36,599 S1: your calls at 800 525 7000. This is faith and finance. Live. 8 00:00:36,800 --> 00:00:43,199 S1: Biblical wisdom for your financial decisions. These days, scams show 9 00:00:43,200 --> 00:00:47,080 S1: up just about everywhere by phone, email, text, social media, 10 00:00:47,080 --> 00:00:50,440 S1: and even by impersonating people you trust. But as followers 11 00:00:50,440 --> 00:00:52,640 S1: of Christ were not called to live in fear. We're 12 00:00:52,640 --> 00:00:55,320 S1: called to walk in wisdom. So how do we do 13 00:00:55,320 --> 00:00:58,880 S1: that when it comes to guarding our finances? Well, first 14 00:00:58,880 --> 00:01:03,660 S1: pause before you respond. Scammers thrive on urgency. If someone 15 00:01:03,660 --> 00:01:06,740 S1: pressures you to act immediately, whether it's a phone call 16 00:01:06,740 --> 00:01:09,819 S1: claiming to be your bank or a text message saying 17 00:01:09,819 --> 00:01:14,500 S1: your account's been compromised, slow down. Verify the source. Hang 18 00:01:14,540 --> 00:01:17,419 S1: up and call the official number on your card. Check 19 00:01:17,420 --> 00:01:22,900 S1: the sender's email address and remember, pressure is a red flag. Second, 20 00:01:22,940 --> 00:01:26,020 S1: never send money via wire transfer or gift cards or 21 00:01:26,020 --> 00:01:29,220 S1: payment apps like Zelle or Venmo to someone you don't 22 00:01:29,220 --> 00:01:33,940 S1: know personally. No legitimate organization requests payment this way. If 23 00:01:33,940 --> 00:01:37,780 S1: someone insists, just walk away. When shopping online, use a 24 00:01:37,780 --> 00:01:41,100 S1: credit card rather than a debit card. Credit cards typically 25 00:01:41,100 --> 00:01:45,059 S1: offer stronger fraud protection and limit your liability if something 26 00:01:45,060 --> 00:01:50,940 S1: goes wrong. Next, enable two factor authentication on all financial accounts. 27 00:01:50,940 --> 00:01:54,220 S1: It's like adding a deadbolt to your digital front door. 28 00:01:54,420 --> 00:01:57,140 S1: Even if a thief steals your password, they can't get 29 00:01:57,140 --> 00:02:01,850 S1: in without the second key. Ideally, use an authenticator app 30 00:02:01,850 --> 00:02:05,170 S1: to generate this code, which is much safer than receiving 31 00:02:05,170 --> 00:02:09,490 S1: a text message. Speaking of passwords, don't reuse them. Use 32 00:02:09,490 --> 00:02:14,489 S1: a password manager like Bitwarden or Nordpass to generate and 33 00:02:14,490 --> 00:02:19,770 S1: store strong, unique passwords. Both offer free, secure options to 34 00:02:19,810 --> 00:02:24,250 S1: help you stay protected. Also monitor your accounts regularly. Most 35 00:02:24,250 --> 00:02:27,690 S1: banks let you set up alerts for large transactions, logins, 36 00:02:27,690 --> 00:02:33,050 S1: or unusual activity. These alerts act like a financial alarm system, 37 00:02:33,050 --> 00:02:37,690 S1: helping you catch suspicious activity early before real damage is done. 38 00:02:37,970 --> 00:02:41,210 S1: Another crucial step freeze your credit. It's one of the 39 00:02:41,210 --> 00:02:45,370 S1: most effective defenses against identity theft. It's free to do 40 00:02:45,370 --> 00:02:48,970 S1: with all three major credit bureaus and can be temporarily 41 00:02:48,970 --> 00:02:52,090 S1: lifted when needed. Think of it as putting a padlock 42 00:02:52,090 --> 00:02:56,370 S1: on your credit file. Be especially cautious with public Wi-Fi 43 00:02:56,370 --> 00:02:59,830 S1: at coffee shops or Airports if you must bank on 44 00:02:59,830 --> 00:03:04,109 S1: public Wi-Fi. Always use a VPN app to scramble your 45 00:03:04,110 --> 00:03:07,790 S1: data so thieves can't read it. Otherwise, wait until you're 46 00:03:07,790 --> 00:03:12,110 S1: on a private home network. The same goes for borrowed devices. 47 00:03:12,110 --> 00:03:15,950 S1: Only check accounts from your own phone or computer. And 48 00:03:15,950 --> 00:03:20,910 S1: don't forget about social media over sharing personal details like birthdays, 49 00:03:20,910 --> 00:03:25,470 S1: family members or recent purchases can give scammers clues to 50 00:03:25,630 --> 00:03:30,269 S1: your passwords or security questions. Set your profiles to friends 51 00:03:30,270 --> 00:03:34,750 S1: only and think twice before posting personal information. Here's a 52 00:03:34,750 --> 00:03:39,670 S1: classic but still essential tip shred sensitive documents, bank statements, 53 00:03:39,670 --> 00:03:44,590 S1: medical records, tax forms anything with your personal financial information 54 00:03:44,590 --> 00:03:48,470 S1: should be shredded before going in the trash. Identity thieves 55 00:03:48,470 --> 00:03:51,670 S1: will dig through garbage if they think there's something valuable 56 00:03:51,670 --> 00:03:55,830 S1: in there. Also, never click on suspicious links, even if 57 00:03:55,830 --> 00:03:58,980 S1: they appear to come from someone you know. Hackers can 58 00:03:58,980 --> 00:04:03,540 S1: take over accounts and send phishing messages that look perfectly normal. 59 00:04:03,700 --> 00:04:06,860 S1: If something seems off, reach out to the person directly 60 00:04:06,860 --> 00:04:11,340 S1: before clicking it. And finally, educate those around you. Scammers 61 00:04:11,340 --> 00:04:16,500 S1: often target the most vulnerable, particularly older adults and teenagers. 62 00:04:16,500 --> 00:04:20,219 S1: Make this a family conversation. Talk with your kids, your parents, 63 00:04:20,220 --> 00:04:23,020 S1: your friends. Share what you've learned and keep each other 64 00:04:23,020 --> 00:04:26,700 S1: informed about the latest scams. If a company offers you 65 00:04:26,700 --> 00:04:31,020 S1: identity theft protection after a data breach, take advantage of it, 66 00:04:31,020 --> 00:04:34,860 S1: but verify first. Don't trust links or numbers in the 67 00:04:34,860 --> 00:04:38,940 S1: letter or email. Instead, contact the company directly through their 68 00:04:38,940 --> 00:04:42,700 S1: official website or customer service number to confirm the offer 69 00:04:42,700 --> 00:04:46,700 S1: is legitimate. There's no question that in today's world, financial 70 00:04:46,700 --> 00:04:51,780 S1: faithfulness includes digital awareness. Guarding your data, protecting your family, 71 00:04:51,779 --> 00:04:55,300 S1: and staying alert to fraud are essential parts of stewardship. 72 00:04:55,460 --> 00:04:58,800 S1: But don't let that lead to fear or discouragement. With 73 00:04:58,800 --> 00:05:02,160 S1: a few intentional steps, you can safeguard what he's entrusted 74 00:05:02,160 --> 00:05:05,520 S1: to you and live with peace, not panic. By the way, 75 00:05:05,520 --> 00:05:08,080 S1: another great way to manage your money wisely and grow 76 00:05:08,080 --> 00:05:11,359 S1: in financial stewardship is to download and use the Faith 77 00:05:11,360 --> 00:05:15,280 S1: VI app. You'll find it at faith fi.com. That's faith 78 00:05:15,440 --> 00:05:20,880 S1: f i.com. Alright, your calls are next, 800 525 7000. 79 00:05:20,920 --> 00:05:21,799 S1: We'll be right back. 80 00:05:33,760 --> 00:05:37,000 S2: The opinions offered during this program represent the personal or 81 00:05:37,000 --> 00:05:41,400 S2: professional opinions of the participants given for informational purposes only. 82 00:05:41,720 --> 00:05:45,120 S2: Any information provided is not intended to replace advice from 83 00:05:45,120 --> 00:05:49,440 S2: a financial, medical, legal or other professional who understands your 84 00:05:49,440 --> 00:05:50,920 S2: specific situation. 85 00:05:58,950 --> 00:06:00,590 S1: Great to have you with us today on Faith and 86 00:06:00,589 --> 00:06:03,030 S1: Finance Live. I'm Rob Westwell. In just a moment we're 87 00:06:03,029 --> 00:06:05,750 S1: going to be taking your calls and questions today. So 88 00:06:05,790 --> 00:06:07,870 S1: now is the time to call. While the lines are 89 00:06:07,870 --> 00:06:10,109 S1: filling up, we've still got room for you at the moment. 90 00:06:10,150 --> 00:06:16,190 S1: 800 525 7000. That's 800 525 7000. You know, we 91 00:06:16,470 --> 00:06:19,990 S1: started today by talking about those scams that seem to 92 00:06:19,990 --> 00:06:23,230 S1: be growing all the time. And hopefully that gave you 93 00:06:23,230 --> 00:06:25,510 S1: some best practices to think about. If you want to 94 00:06:25,550 --> 00:06:28,750 S1: talk about that related to your situation or anything else, 95 00:06:28,750 --> 00:06:31,670 S1: we'd love to hear from you again. That number 800 96 00:06:31,710 --> 00:06:36,910 S1: 525 7000. You can call right now in the news today, 97 00:06:36,910 --> 00:06:41,109 S1: a new national longitudinal study is raising important questions about 98 00:06:41,110 --> 00:06:46,310 S1: how families approach inheritance. Researchers found that 41% of errors 99 00:06:46,350 --> 00:06:49,270 S1: saw their net worth fall back to or below pre 100 00:06:49,270 --> 00:06:53,830 S1: inheritance levels within just one year. Even more surprising, this 101 00:06:53,830 --> 00:06:57,650 S1: pattern wasn't limited to younger generations. The study focused on 102 00:06:57,650 --> 00:07:02,289 S1: individuals ages 50 and older, suggesting the issue isn't simply 103 00:07:02,330 --> 00:07:08,250 S1: financial immaturity. Instead, experts point to a deeper explanation inherited 104 00:07:08,250 --> 00:07:11,690 S1: wealth is often emotionally tied to the death of a 105 00:07:11,690 --> 00:07:17,330 S1: loved one. Researchers described this as a mortality salience, the 106 00:07:17,370 --> 00:07:22,450 S1: psychological discomfort that comes from being reminded of death. In response, 107 00:07:22,450 --> 00:07:25,530 S1: many errors either spend the money quickly to distance themselves 108 00:07:25,530 --> 00:07:30,250 S1: from that reminder or avoid using it altogether, preserving it 109 00:07:30,370 --> 00:07:33,730 S1: as a symbol of legacy. As a result, behavior tends 110 00:07:33,730 --> 00:07:37,530 S1: to be extreme. Most heirs either spend everything or save everything, 111 00:07:37,570 --> 00:07:42,970 S1: and few strike a balanced approach. The findings challenge a 112 00:07:42,970 --> 00:07:46,770 S1: common assumption in financial planning that money is neutral and 113 00:07:46,770 --> 00:07:50,970 S1: will be handled rationally in reality. How wealth is transferred 114 00:07:50,970 --> 00:07:54,080 S1: may matter just as much as how it's given. The 115 00:07:54,080 --> 00:07:57,680 S1: reality is that inheritance is more than a financial transfer. 116 00:07:57,720 --> 00:08:02,120 S1: It's really a spiritual opportunity. Faithful stewardship means preparing not 117 00:08:02,120 --> 00:08:06,280 S1: only the resources we pass down, the strategies, the tools, 118 00:08:06,280 --> 00:08:09,840 S1: the taxation, but also the hearts that will receive them, 119 00:08:09,840 --> 00:08:12,640 S1: the next steward. So that wealth becomes a tool for 120 00:08:12,640 --> 00:08:16,280 S1: God's purposes rather than a burden to carry. We're going 121 00:08:16,320 --> 00:08:17,880 S1: to try to help with this. We have a brand 122 00:08:17,920 --> 00:08:21,520 S1: new resource, actually a new product category at Faith fi 123 00:08:21,560 --> 00:08:25,440 S1: that's launching in addition to our magazine studies and devotionals. 124 00:08:25,440 --> 00:08:28,720 S1: This new category we called Field Guides, they're really meant 125 00:08:28,720 --> 00:08:34,480 S1: to allow you to tackle one specific top question in 126 00:08:34,480 --> 00:08:38,199 S1: light of biblical wisdom, but with really practical worksheets and 127 00:08:38,200 --> 00:08:41,240 S1: application for you to work through the particular issue, and 128 00:08:41,240 --> 00:08:43,800 S1: then read stories of people who have done it well 129 00:08:44,000 --> 00:08:46,160 S1: in a God honoring way. We're going to start with 130 00:08:46,160 --> 00:08:48,880 S1: the first field guide. How much money is enough? How 131 00:08:48,880 --> 00:08:52,080 S1: do you set a financial finish line for your lifestyle? 132 00:08:52,080 --> 00:08:53,860 S1: This is going to walk you through all of it. 133 00:08:53,900 --> 00:08:56,140 S1: It comes out in June, but then the second one 134 00:08:56,140 --> 00:08:58,860 S1: directly relates to this topic. And that is how do 135 00:08:58,860 --> 00:09:01,940 S1: you prepare the next steward? I can't wait to get 136 00:09:01,940 --> 00:09:03,980 S1: that one out. We're going to give you some really 137 00:09:03,980 --> 00:09:07,460 S1: practical ways to think about with intentionality. How do I 138 00:09:07,460 --> 00:09:10,500 S1: prepare this next steward for the money so that I 139 00:09:10,540 --> 00:09:13,500 S1: pass wisdom before wealth? If you want to learn more 140 00:09:13,620 --> 00:09:16,020 S1: or become a partner to ensure you get all of 141 00:09:16,020 --> 00:09:20,700 S1: them when they're released, just head over to faith.com/give. That's 142 00:09:20,700 --> 00:09:24,700 S1: faith f i.com/give. It's a great way to support the ministry, 143 00:09:24,740 --> 00:09:27,740 S1: help us reach more people and ensure that we send 144 00:09:27,740 --> 00:09:31,940 S1: you every new resource magazine, even a pro subscription to 145 00:09:31,940 --> 00:09:36,420 S1: the faith app. It's yours as a partner faith fi.com/give. 146 00:09:36,580 --> 00:09:38,380 S1: All right, let's dive in. Today we're going to begin 147 00:09:38,380 --> 00:09:39,820 S1: in Florida. Steve go ahead sir. 148 00:09:40,380 --> 00:09:43,860 S3: Hey. Good afternoon. Um, we recently had a credit card 149 00:09:43,860 --> 00:09:47,900 S3: application denied. And on the report they sent us has 150 00:09:47,940 --> 00:09:52,370 S3: a range of credit scores from 316 up to 850. 151 00:09:53,090 --> 00:09:57,330 S3: So he called the credit agencies and they all have 152 00:09:57,330 --> 00:10:01,530 S3: listings for us of over 700. And yet that 316 153 00:10:01,530 --> 00:10:05,130 S3: shows up someplace. We're wondering if there's another step we 154 00:10:05,130 --> 00:10:08,290 S3: can take to find out where that 316 is coming from. 155 00:10:09,450 --> 00:10:14,090 S1: Yeah. Well, it's a great question. And you know, that's 156 00:10:14,090 --> 00:10:16,410 S1: a big red flag. The good news is it's almost 157 00:10:16,410 --> 00:10:21,290 S1: always fixable. Uh, so something is wrong on that report 158 00:10:21,570 --> 00:10:25,210 S1: that has that score tied to it. Have you taken 159 00:10:25,210 --> 00:10:28,610 S1: the step of pulling all three credit reports, which would 160 00:10:28,610 --> 00:10:33,330 S1: be free to you, Steve, at Annualcreditreport.com, because the three 161 00:10:33,330 --> 00:10:38,250 S1: bureaus that matter are the Experian report, the Equifax report 162 00:10:38,250 --> 00:10:41,490 S1: and the TransUnion report. And we need to find out 163 00:10:41,490 --> 00:10:46,050 S1: which one has the most likely issues, which is going 164 00:10:46,090 --> 00:10:49,370 S1: to be either a collection or charge off or missed 165 00:10:49,370 --> 00:10:53,750 S1: payment or payments. An account in default or some sort 166 00:10:53,750 --> 00:10:57,390 S1: of mixed file. Like you have someone else's data because 167 00:10:57,390 --> 00:11:00,950 S1: there's a problem or there's been identity theft. One of 168 00:11:00,950 --> 00:11:03,910 S1: those or more of those things are going on with 169 00:11:03,910 --> 00:11:07,190 S1: respect to one of those three bureau reports. Have you 170 00:11:07,190 --> 00:11:08,070 S1: pulled all three? 171 00:11:08,790 --> 00:11:12,830 S3: Yes. Yeah. And also there's one listed for check systems also. 172 00:11:13,190 --> 00:11:16,790 S3: We did four of them. Okay. The three main ones Experian, 173 00:11:16,790 --> 00:11:19,949 S3: TransUnion and Equifax, we all did. And they all list 174 00:11:19,950 --> 00:11:23,590 S3: above 700 on the credit report. We didn't actually talk 175 00:11:23,590 --> 00:11:24,150 S3: to them. 176 00:11:25,550 --> 00:11:29,550 S1: Okay. Yeah. So that checks your banking behavior check systems. 177 00:11:29,550 --> 00:11:32,550 S1: It's not credit cards. It reports things like overdrafts that 178 00:11:32,550 --> 00:11:38,230 S1: weren't paid or closed, accounts with negative balances or suspected fraud. 179 00:11:38,350 --> 00:11:41,550 S1: It doesn't affect your credit score directly. So that would 180 00:11:41,550 --> 00:11:45,309 S1: not cause this lower score. What's going into the check systems. 181 00:11:45,429 --> 00:11:48,710 S1: So have you been able to identify, uh, you know 182 00:11:48,790 --> 00:11:52,380 S1: where this 316 is showing up. Where did you get 183 00:11:52,380 --> 00:11:53,420 S1: that information. 184 00:11:55,220 --> 00:11:58,820 S3: On the the report that they denied the credit card. 185 00:11:58,860 --> 00:12:03,300 S3: It says your score is 794 on that date. Scores 186 00:12:03,340 --> 00:12:07,140 S3: range from a low of 316 to a high of 850. 187 00:12:07,940 --> 00:12:10,900 S3: So I was told that at 316 showed up on 188 00:12:10,900 --> 00:12:12,740 S3: one of their reports someplace. 189 00:12:13,260 --> 00:12:15,699 S1: Yeah. Um. Interesting. 190 00:12:15,860 --> 00:12:19,660 S3: At 794, our credit score is listed at 794, but 191 00:12:19,700 --> 00:12:21,780 S3: it still has that 316 in there. 192 00:12:22,340 --> 00:12:26,420 S1: Okay. And, uh, were you denied credit as a result 193 00:12:26,420 --> 00:12:26,980 S1: of this? 194 00:12:28,059 --> 00:12:30,180 S3: Yeah. This credit card was denied. Yes. 195 00:12:30,220 --> 00:12:35,699 S1: Okay. So this, this is going to be, uh, a non-standard, uh, score. 196 00:12:35,700 --> 00:12:38,580 S1: So this is probably not from the Fico score, which 197 00:12:38,580 --> 00:12:41,860 S1: is the, what you're seeing, uh, on those bureau reports 198 00:12:41,860 --> 00:12:45,460 S1: you pulled yourself, this lender may be using a different 199 00:12:45,460 --> 00:12:48,100 S1: scoring model and it could be a vantage score or 200 00:12:48,140 --> 00:12:53,080 S1: an internal score. Maybe it's even a specialty score. But 201 00:12:53,120 --> 00:12:57,520 S1: you know, the essentially, if if the bureau has little 202 00:12:57,520 --> 00:13:01,440 S1: or no data. Um, you know, or it just is 203 00:13:01,440 --> 00:13:05,000 S1: defaulting to a lower score. It could be a mixed 204 00:13:05,000 --> 00:13:08,880 S1: file issue. Um, so we need to try to get 205 00:13:08,880 --> 00:13:12,400 S1: to the source of, of where this is coming from. 206 00:13:12,400 --> 00:13:16,000 S1: So I would ask the, the lender or in this case, 207 00:13:16,000 --> 00:13:20,640 S1: the dealer, um, for the exact bureau that was used, 208 00:13:20,920 --> 00:13:25,400 S1: the scoring model and the reason codes, uh, they should 209 00:13:25,400 --> 00:13:28,360 S1: be able to provide that. And then that would allow 210 00:13:28,360 --> 00:13:30,640 S1: you to kind of dial in to the one bureau 211 00:13:30,679 --> 00:13:33,760 S1: that has the issue and try to figure out what's 212 00:13:33,760 --> 00:13:37,880 S1: going on here. Um, if you're seeing, you know, all 213 00:13:37,880 --> 00:13:42,160 S1: three major bureaus with, with 700 plus, you should be 214 00:13:42,160 --> 00:13:44,960 S1: in pretty good shape, but we need to find out 215 00:13:44,960 --> 00:13:48,390 S1: which bureau perhaps has the thin data on you or 216 00:13:48,429 --> 00:13:52,390 S1: even incorrect data. So I'd go back and especially because 217 00:13:52,390 --> 00:13:54,750 S1: you were denied, they're required by law to give you 218 00:13:54,950 --> 00:13:59,310 S1: that credit file. I would ask them which bureau, which 219 00:13:59,350 --> 00:14:02,750 S1: scoring model. And you know, what were the reasons for 220 00:14:02,750 --> 00:14:05,670 S1: the denial. And let's see if we can chase this down. 221 00:14:05,670 --> 00:14:08,030 S1: And what you may need to do is dispute negative 222 00:14:08,030 --> 00:14:11,630 S1: or inaccurate information that that is not yours. So I'd 223 00:14:11,630 --> 00:14:13,589 S1: do a little more digging here, Steve, but I think 224 00:14:13,630 --> 00:14:15,630 S1: you'll get to the bottom of it of it. And 225 00:14:15,630 --> 00:14:17,950 S1: if we can help along the way, don't hesitate to 226 00:14:17,990 --> 00:14:20,950 S1: reach out again. Thanks for your call. More questions after 227 00:14:20,950 --> 00:14:32,670 S1: this on faith and Finance live. Stick around. Great to 228 00:14:32,670 --> 00:14:34,590 S1: have you with us today on Faith and Finance Live. 229 00:14:34,590 --> 00:14:37,550 S1: We've got lots of calls here waiting, but still three 230 00:14:37,590 --> 00:14:39,870 S1: lines remaining. So if you've got a question we'll we'll 231 00:14:39,870 --> 00:14:41,990 S1: get to as many as we can today. Call right 232 00:14:41,990 --> 00:14:48,890 S1: now 800 525 7000. That's 800 525 7000. Let's head 233 00:14:48,890 --> 00:14:50,730 S1: to Oklahoma. James. Go ahead sir. 234 00:14:50,770 --> 00:14:54,650 S4: Hi, Rob. I wanted to ask about charitable gift annuities. 235 00:14:54,650 --> 00:14:59,250 S4: I'm single and the ones that I have gotten information 236 00:14:59,450 --> 00:15:02,570 S4: about thus far have been only that you're able to 237 00:15:02,570 --> 00:15:05,450 S4: connect your spouse to it. And I was wondering if 238 00:15:05,450 --> 00:15:08,610 S4: there are any out there that you can connect family 239 00:15:08,610 --> 00:15:14,570 S4: members or friends, and I'm looking for a $10,000 amount. 240 00:15:14,890 --> 00:15:18,690 S4: I saw on the National Christian Foundation website that they 241 00:15:19,010 --> 00:15:22,610 S4: begin on 25,000 is what I saw. So do you 242 00:15:22,610 --> 00:15:24,770 S4: have any advice on looking for that? 243 00:15:24,810 --> 00:15:28,570 S1: Yeah, yeah. Good question. So charitable gift annuity can be 244 00:15:28,610 --> 00:15:32,050 S1: a really fabulous tool. You absolutely do not have to 245 00:15:32,050 --> 00:15:35,330 S1: be married. They can be set up for a single individual. 246 00:15:35,330 --> 00:15:39,090 S1: In fact that's the most common. Um, yes, you can 247 00:15:39,090 --> 00:15:42,330 S1: do them for two people. But but single is most 248 00:15:42,330 --> 00:15:45,610 S1: typical and it's completely fine. Uh, can you do it 249 00:15:45,610 --> 00:15:49,350 S1: for 10,000? It just totally depends on the charity. Now, 250 00:15:49,390 --> 00:15:53,910 S1: many charities have minimums of 5 to 10,000. Um, and 251 00:15:53,910 --> 00:15:56,750 S1: so 10,000 is enough. You just need to find the 252 00:15:56,750 --> 00:16:02,390 S1: right organization that aligns with, you know, your specific criteria 253 00:16:02,390 --> 00:16:04,830 S1: and the amount you're looking to get the CGA for. 254 00:16:04,990 --> 00:16:07,790 S1: And then obviously, you know, one that you would be 255 00:16:07,790 --> 00:16:12,310 S1: excited about leaving whatever is remaining at your death. Um, 256 00:16:12,310 --> 00:16:15,870 S1: so you certainly can do that. Um, I would probably 257 00:16:15,870 --> 00:16:20,350 S1: start with the, the team there at, uh, at Moody stewardship. Um, 258 00:16:20,390 --> 00:16:24,030 S1: because Moody Bible Institute offers cGAS, I don't know right 259 00:16:24,070 --> 00:16:27,190 S1: off hand what the minimum is. Um, and so if 260 00:16:27,190 --> 00:16:29,390 S1: that doesn't work out, I have a couple of other 261 00:16:29,390 --> 00:16:32,150 S1: options and my team could get your information and I 262 00:16:32,150 --> 00:16:34,870 S1: could direct you accordingly. But, um, you know, this is 263 00:16:34,870 --> 00:16:37,470 S1: going to give you a contract with a charity. You 264 00:16:37,510 --> 00:16:39,950 S1: give them the money, they pay you a fixed income 265 00:16:39,950 --> 00:16:42,830 S1: for life, you get a partial tax deduction up front. 266 00:16:42,830 --> 00:16:45,380 S1: And then when you pass away, the remaining the remaining 267 00:16:45,420 --> 00:16:49,100 S1: amount goes to the charity. So you certainly can do it. 268 00:16:49,100 --> 00:16:51,140 S1: And I think it's just a matter of finding the 269 00:16:51,140 --> 00:16:52,180 S1: right charity at this point. 270 00:16:52,220 --> 00:16:56,380 S4: Yeah, I'm mostly interested in being able to connect another 271 00:16:56,380 --> 00:17:00,900 S4: person to that family member or us as a second 272 00:17:00,900 --> 00:17:02,540 S4: person as well. 273 00:17:02,860 --> 00:17:06,620 S1: Okay. Uh, in terms of receiving the income or what 274 00:17:06,619 --> 00:17:07,420 S1: are you thinking there? 275 00:17:07,460 --> 00:17:10,700 S4: Yeah. I would receive the income as I understand it, 276 00:17:10,700 --> 00:17:13,660 S4: until I pass. And then the second person would then 277 00:17:13,660 --> 00:17:15,700 S4: receive income until they pass. 278 00:17:15,740 --> 00:17:16,140 S1: Yeah. 279 00:17:16,580 --> 00:17:18,860 S4: Sound like that? How's how's that works? 280 00:17:19,020 --> 00:17:22,140 S1: Yes. You're what you're thinking of is a two life 281 00:17:22,140 --> 00:17:25,899 S1: charitable gift annuity. And it's absolutely possible. So instead of 282 00:17:25,900 --> 00:17:28,220 S1: just one person, you set it up for two people. 283 00:17:28,220 --> 00:17:30,900 S1: It doesn't have to be a spouse. Payments go to 284 00:17:30,940 --> 00:17:34,300 S1: person one, which would be you, the primary annuitant, and 285 00:17:34,300 --> 00:17:39,340 S1: then continue to person two after the first passes and 286 00:17:39,380 --> 00:17:43,619 S1: income continues until the second person dies. Um, so it 287 00:17:43,619 --> 00:17:47,320 S1: could be a sibling, a child, a friend, no marriage requirement. 288 00:17:47,480 --> 00:17:50,159 S1: You would get a lower payout rate because they're paying 289 00:17:50,160 --> 00:17:53,199 S1: for two lifetimes, not just one. So it'll be a 290 00:17:53,200 --> 00:17:57,400 S1: lower amount than a single life CGA. And the minimum 291 00:17:57,400 --> 00:18:01,320 S1: amount could be higher. But, uh, you know, I think 292 00:18:01,680 --> 00:18:05,160 S1: you still very well could find one. Um, I will 293 00:18:05,160 --> 00:18:08,449 S1: say for a two life and CGA often it's 20 294 00:18:08,450 --> 00:18:12,200 S1: to 25,000. But again it still could work. You just 295 00:18:12,200 --> 00:18:13,720 S1: need to do your due diligence. 296 00:18:13,760 --> 00:18:15,760 S4: Okay, I appreciate that help. 297 00:18:15,800 --> 00:18:17,840 S1: All right. Thanks for your call today. We appreciate you 298 00:18:17,840 --> 00:18:19,920 S1: very much. Uh, if you want to stay on the line, 299 00:18:19,920 --> 00:18:21,640 S1: our team will get your information. And I can give 300 00:18:21,640 --> 00:18:24,520 S1: you a couple of options to check with. If, in fact, 301 00:18:24,560 --> 00:18:27,040 S1: the moody option doesn't work out for you. Let's go 302 00:18:27,040 --> 00:18:29,119 S1: to Michigan. Uh, Hilda, how can I help? 303 00:18:29,800 --> 00:18:32,880 S5: Hi, Rob. Thanks for taking my call. Um, my husband 304 00:18:32,880 --> 00:18:37,840 S5: and I recently were introduced to the starfish program. Wondering 305 00:18:37,840 --> 00:18:40,160 S5: if you're familiar with that and what your thoughts are 306 00:18:40,160 --> 00:18:40,840 S5: on that. 307 00:18:41,440 --> 00:18:46,389 S1: HMM. Yeah. Um, in terms of, uh, I've heard a 308 00:18:46,390 --> 00:18:48,430 S1: little bit about it. I can't say that I know 309 00:18:48,430 --> 00:18:52,710 S1: a ton. Um, but essentially, um, you know, what, what 310 00:18:52,710 --> 00:18:54,830 S1: I'm aware of is that this is something you need 311 00:18:54,830 --> 00:18:59,870 S1: to stay, you know, really far from, um, and essentially 312 00:19:00,310 --> 00:19:04,470 S1: it can sound appealing because they promise instant cash back, 313 00:19:04,670 --> 00:19:07,470 S1: but they typically charge, if I'm thinking about the right thing, 314 00:19:07,510 --> 00:19:11,190 S1: an annual membership fee, meaning you start in the hole. 315 00:19:11,550 --> 00:19:15,230 S1: So basically, you know, you load money into the app 316 00:19:15,510 --> 00:19:18,910 S1: at checkout, you buy a gift card instantly, you use 317 00:19:18,910 --> 00:19:21,909 S1: that gift card to pay and you get cash back. 318 00:19:21,950 --> 00:19:24,790 S1: You know what are referred to as perks credited to 319 00:19:24,790 --> 00:19:28,429 S1: your account. Um, it sounds appealing because you get cash 320 00:19:28,470 --> 00:19:31,270 S1: back on everyday spending and you can kind of stack 321 00:19:31,310 --> 00:19:35,869 S1: the savings on other reward programs and encourages paying with, quote, 322 00:19:35,910 --> 00:19:40,670 S1: a cash like fund option. The trade off is it 323 00:19:40,670 --> 00:19:43,409 S1: adds friction to the spending because you've got to you 324 00:19:43,450 --> 00:19:45,770 S1: got to load the money ahead of time. You've got 325 00:19:45,770 --> 00:19:48,689 S1: to buy the gift cards at checkout. So it's not 326 00:19:48,690 --> 00:19:53,290 S1: seamless like a normal card. You're pre-funding purchases. So your 327 00:19:53,290 --> 00:19:55,730 S1: money sits in their system, not in your bank. So 328 00:19:55,770 --> 00:20:00,530 S1: that introduces liquidity and access risk. And then there's this 329 00:20:00,530 --> 00:20:03,410 S1: point I mentioned a moment ago, and that is they 330 00:20:03,410 --> 00:20:07,250 S1: often require a paid membership, which could run you $60 331 00:20:07,250 --> 00:20:08,890 S1: a year or more. So you need to be able 332 00:20:08,890 --> 00:20:13,610 S1: to justify the cost. And I think just from that standpoint, um, 333 00:20:13,690 --> 00:20:16,930 S1: you know, I would it introduces a lot of complexity 334 00:20:16,930 --> 00:20:19,210 S1: and I would just ask, is it really worth it? 335 00:20:19,250 --> 00:20:21,770 S1: I think the other thing is, you know, is it 336 00:20:21,770 --> 00:20:27,609 S1: driving over spending? Because if you're saving 5% on spending, 337 00:20:27,609 --> 00:20:31,210 S1: you didn't need, at the end of the day, you're 338 00:20:31,210 --> 00:20:34,050 S1: spending more just to earn rewards. So you've got to 339 00:20:34,050 --> 00:20:37,570 S1: be really disciplined with your spending, and you've got to 340 00:20:37,570 --> 00:20:39,969 S1: be willing to deal with the extra steps. Does that 341 00:20:39,970 --> 00:20:40,850 S1: all make sense though? 342 00:20:40,890 --> 00:20:44,800 S5: Yes it does. And we were kind of reluctant about 343 00:20:44,800 --> 00:20:47,240 S5: it anyway, because you're right, there is a membership fee 344 00:20:47,240 --> 00:20:51,760 S5: of 139 to get in, and then it's $60 a month, 345 00:20:51,760 --> 00:20:57,199 S5: which they're very vague about explaining that when they explain 346 00:20:57,200 --> 00:20:58,440 S5: the program to you. 347 00:20:58,760 --> 00:21:01,160 S1: Well, just based on hearing that, I would run for 348 00:21:01,160 --> 00:21:03,600 S1: the hills on that one. Yeah, that's not going to 349 00:21:03,600 --> 00:21:05,720 S1: make sense at all. That's just way too much in 350 00:21:05,720 --> 00:21:10,840 S1: the way of fees for a minimal benefit. And again, 351 00:21:10,880 --> 00:21:14,040 S1: it might end up driving spending that you wouldn't otherwise do, 352 00:21:14,080 --> 00:21:16,520 S1: which we don't want. So let's keep it simple. If 353 00:21:16,520 --> 00:21:20,480 S1: you're disciplined, get a cash back rewards card, you know, 354 00:21:20,520 --> 00:21:24,400 S1: like the Wells Fargo, uh, card or one of the others. 355 00:21:24,400 --> 00:21:28,080 S1: That's 2% on every purchase. Pay it in full every month. 356 00:21:28,080 --> 00:21:30,520 S1: Only use it for budgeted items. And I'd feel a 357 00:21:30,520 --> 00:21:33,080 S1: lot better about that. Hilda, thanks for your call today. 358 00:21:33,080 --> 00:21:35,080 S1: God bless you. We're going to take a break. We'll 359 00:21:35,080 --> 00:21:37,040 S1: be back with more of your questions. Still got a 360 00:21:37,080 --> 00:21:48,219 S1: lot of room 800 525 7000. Well, each day on 361 00:21:48,220 --> 00:21:51,300 S1: this program, we gather together to hopefully bring some hope 362 00:21:51,300 --> 00:21:55,700 S1: and encouragement to you as you manage God's resources. Listen, 363 00:21:55,700 --> 00:21:57,620 S1: we think this is a really high calling, and that's 364 00:21:57,619 --> 00:22:00,300 S1: why we do this program every day, because money is 365 00:22:00,300 --> 00:22:02,820 S1: a good gift from a good God. He's the author 366 00:22:02,820 --> 00:22:05,659 S1: of delight and joy and where to use this to 367 00:22:05,700 --> 00:22:08,340 S1: bring him glory. We can enjoy it. That's clear in 368 00:22:08,340 --> 00:22:10,660 S1: God's Word. We provide with it. We give it away. 369 00:22:10,660 --> 00:22:14,540 S1: We invest it all for God's glory, keeping eternity in view, 370 00:22:14,540 --> 00:22:17,860 S1: not the things of this world. Knowing God is our provider. 371 00:22:18,020 --> 00:22:21,020 S1: We are stewards or managers of what he's entrusted to us, 372 00:22:21,020 --> 00:22:23,780 S1: and we want to be found faithful. And we can 373 00:22:23,780 --> 00:22:25,900 S1: do that together. When we look to God's Word and 374 00:22:25,900 --> 00:22:28,820 S1: the principles we see in Scripture. So that's our hope 375 00:22:28,820 --> 00:22:30,940 S1: every day, is to be able to direct you back 376 00:22:30,940 --> 00:22:34,340 S1: to the truth we find in the scriptures, and encourage 377 00:22:34,340 --> 00:22:38,740 S1: you toward faithfulness as you manage God's resources. Every line 378 00:22:38,740 --> 00:22:40,930 S1: is full here today with great questions. So we're going 379 00:22:40,970 --> 00:22:42,450 S1: to dive back in. We'll get to as many as 380 00:22:42,450 --> 00:22:44,169 S1: we can between now and the top of the hour. 381 00:22:44,210 --> 00:22:46,970 S1: Let's go to New Hampshire. Denise, how can I help? 382 00:22:48,570 --> 00:22:50,410 S6: Hi there. How are you doing today? 383 00:22:50,810 --> 00:22:52,970 S1: I'm great, thank you. I hope you are as well. 384 00:22:54,330 --> 00:22:58,370 S6: I am. Well, um, I have a question about a 385 00:22:58,369 --> 00:23:04,610 S6: reverse mortgage on a manufactured home on leased land, and 386 00:23:04,609 --> 00:23:07,490 S6: I was wondering if that was something that would qualify. 387 00:23:08,330 --> 00:23:12,889 S1: Unfortunately, the answer is likely no, that it would not qualify. 388 00:23:12,890 --> 00:23:16,530 S1: And here's the key issue. The leased land. When you 389 00:23:16,530 --> 00:23:20,210 S1: have a max or a manufactured home, you typically own 390 00:23:20,250 --> 00:23:22,850 S1: the home, but lease the land. And that's the problem 391 00:23:22,850 --> 00:23:28,770 S1: is most reverse mortgage programs like the FHA insured home 392 00:23:28,770 --> 00:23:32,090 S1: equity conversion mortgages, which are the only ones I would recommend, 393 00:23:32,250 --> 00:23:37,170 S1: require that the home be real property, not just personal 394 00:23:37,170 --> 00:23:41,750 S1: property and the land ownership has to be included. And 395 00:23:41,750 --> 00:23:44,869 S1: if that's not the case, you are typically not going 396 00:23:44,869 --> 00:23:46,230 S1: to be allowed to do that. 397 00:23:46,790 --> 00:23:52,270 S6: Ah, I'm in a 55 plus community. We have a basement, 398 00:23:52,470 --> 00:23:57,270 S6: but all of the land. Yeah. Is belongs to the 399 00:23:57,270 --> 00:24:00,910 S6: owner of there's 41 homes and yeah, we don't own 400 00:24:00,950 --> 00:24:01,510 S6: the land. 401 00:24:01,910 --> 00:24:04,830 S1: Yeah. Unfortunately I think that's going to put a stop 402 00:24:04,830 --> 00:24:07,350 S1: to that option. So what could you do. Well you 403 00:24:07,350 --> 00:24:10,430 S1: could sell the home and downsize. Uh, you know, you 404 00:24:10,430 --> 00:24:13,830 S1: could consider a home equity loan, although I'd be really 405 00:24:13,830 --> 00:24:16,869 S1: careful about that depending on what you're using it for. Um, 406 00:24:17,190 --> 00:24:19,909 S1: but unfortunately, I don't think the, uh, the home equity 407 00:24:19,910 --> 00:24:24,230 S1: conversion mortgage, the type of reverse mortgage that's FHA insured, 408 00:24:24,230 --> 00:24:25,990 S1: which is what I would want you to do if, 409 00:24:26,030 --> 00:24:29,030 S1: if it made sense for you, um, is probably not 410 00:24:29,030 --> 00:24:31,669 S1: going to be an option with you not owning that land. 411 00:24:31,670 --> 00:24:33,950 S1: So I wish I had better news. Denise, thanks for 412 00:24:33,950 --> 00:24:36,710 S1: calling today. Let's go to Pennsylvania. Mary, how can I 413 00:24:36,750 --> 00:24:37,430 S1: help you? 414 00:24:37,500 --> 00:24:40,859 S7: Yes. Um, a friend of mine gave me your information. 415 00:24:40,859 --> 00:24:44,300 S7: She listens to you in Illinois all the time. And 416 00:24:44,300 --> 00:24:47,580 S7: what my question is, is if you have an IRA 417 00:24:47,580 --> 00:24:50,580 S7: and a Roth IRA and you put them aside for 418 00:24:50,580 --> 00:24:54,780 S7: your retirement and you haven't yet retired, why are you 419 00:24:54,780 --> 00:24:59,740 S7: required at 72 or 73 to start taking the RMDs? 420 00:25:00,300 --> 00:25:05,139 S1: Yeah, yeah. Uh, the reason is, Mary, that the IRS 421 00:25:05,140 --> 00:25:08,780 S1: gave you a benefit. You contributed pre-tax money, and it 422 00:25:08,780 --> 00:25:12,340 S1: grew tax deferred, and now they're ready for their share. 423 00:25:12,580 --> 00:25:15,180 S1: So RMDs force the money to come out so it 424 00:25:15,180 --> 00:25:19,420 S1: becomes taxable income. Now, why does the fact that you're 425 00:25:19,420 --> 00:25:24,300 S1: still working not change anything? Well, traditional IRAs and that's 426 00:25:24,300 --> 00:25:27,820 S1: all this would apply to because Roth IRAs do not 427 00:25:27,820 --> 00:25:31,860 S1: have a required minimum. It's 73. But traditional IRAs are 428 00:25:31,859 --> 00:25:36,220 S1: not tied to your employer. That that I in IRA 429 00:25:36,260 --> 00:25:41,000 S1: stands for Individual Retirement Account. And so because it's an 430 00:25:41,000 --> 00:25:44,680 S1: individual retirement account not tied to your employer, the RMDs 431 00:25:44,680 --> 00:25:47,199 S1: still apply even if you're working. But again, let me 432 00:25:47,200 --> 00:25:50,560 S1: just be clear only for the traditional IRA, not for 433 00:25:50,560 --> 00:25:54,520 S1: the Roth. Now, there is an important exception, and that 434 00:25:54,520 --> 00:25:57,600 S1: is that if the money is in a traditional 401 435 00:25:57,600 --> 00:26:02,160 S1: K or workplace plan and you're still working, you may 436 00:26:02,200 --> 00:26:05,560 S1: be able to delay the RMD, but that does not 437 00:26:05,560 --> 00:26:06,919 S1: apply to IRAs. 438 00:26:06,960 --> 00:26:11,000 S7: Okay, so Roth IRA, you don't have to worry about 439 00:26:11,000 --> 00:26:15,400 S7: taking any RMDs out when you hit 7273. 440 00:26:15,800 --> 00:26:18,280 S1: That's right. There are no RMDs, so you could leave 441 00:26:18,280 --> 00:26:20,359 S1: that money in there. You could pass it on to 442 00:26:20,359 --> 00:26:22,359 S1: your heirs and they would be able to pull it 443 00:26:22,359 --> 00:26:25,160 S1: out without any tax. So it's a it's a beautiful thing. 444 00:26:25,160 --> 00:26:27,200 S1: It's why I like Roths and it's why a lot 445 00:26:27,200 --> 00:26:29,560 S1: of people and you could look at this, a lot 446 00:26:29,560 --> 00:26:34,440 S1: of people do Roth conversions before they're required minimum age. 447 00:26:34,680 --> 00:26:39,190 S1: So they're reducing their future required withdrawals, but that assumes 448 00:26:39,190 --> 00:26:41,629 S1: that you would be able to go ahead and pay 449 00:26:41,630 --> 00:26:44,670 S1: the tax from another source, because I wouldn't want you 450 00:26:44,670 --> 00:26:47,429 S1: if you did. Roth conversions, even for a portion of 451 00:26:47,430 --> 00:26:50,070 S1: your traditional IRA money, I wouldn't want you to have 452 00:26:50,070 --> 00:26:52,270 S1: to pull money out of the IRA to pay the tax, 453 00:26:52,270 --> 00:26:55,430 S1: but if you could pay with other funds, then you 454 00:26:55,430 --> 00:26:58,390 S1: could look at that. And we use a strategy often 455 00:26:58,390 --> 00:27:03,030 S1: where you fill up the lower tax brackets with the 456 00:27:03,030 --> 00:27:06,629 S1: Roth conversion. So let's say, you know, you're in the 12% 457 00:27:06,630 --> 00:27:10,869 S1: bracket and you can afford to have 5000 more before 458 00:27:10,869 --> 00:27:12,989 S1: you go into the next one. You could do a 459 00:27:12,990 --> 00:27:17,429 S1: $5,000 conversion and, and stay in that lower bracket, but 460 00:27:17,430 --> 00:27:20,030 S1: push a little bit of your IRA, your traditional over 461 00:27:20,070 --> 00:27:22,390 S1: to Roth. And a lot of folks will do that 462 00:27:22,390 --> 00:27:25,950 S1: before your RMD age. Now let me mention one other 463 00:27:25,950 --> 00:27:28,669 S1: thing in addition to the conversion is what's called a 464 00:27:28,670 --> 00:27:33,910 S1: qualified charitable distribution, which is a beautiful thing for traditional IRAs. 465 00:27:33,910 --> 00:27:38,169 S1: And that is once you're 70.5, any giving that you 466 00:27:38,170 --> 00:27:40,290 S1: would like to do that perhaps you were planning to 467 00:27:40,290 --> 00:27:43,649 S1: do out of your checking or your savings account? What 468 00:27:43,650 --> 00:27:47,889 S1: if instead you do the same giving from your traditional IRA, 469 00:27:48,330 --> 00:27:51,889 S1: except it goes straight from the IRA custodian to the 470 00:27:51,890 --> 00:27:56,890 S1: charity or your church, and that's called a qualified charitable distribution. 471 00:27:56,890 --> 00:27:59,970 S1: And you don't have to pay any tax on it. 472 00:28:00,010 --> 00:28:02,649 S1: Which remember when you put it in, you got the deduction, 473 00:28:02,650 --> 00:28:04,890 S1: no tax. And if it comes out and goes straight 474 00:28:04,890 --> 00:28:07,730 S1: to a charity, no tax, that means you avoided tax 475 00:28:07,730 --> 00:28:11,890 S1: altogether and it satisfies your required minimum to the extent 476 00:28:11,890 --> 00:28:15,650 S1: you give away through a qualified charitable distribution, at least 477 00:28:15,650 --> 00:28:19,170 S1: enough to cover that required minimum for the year. Does 478 00:28:19,170 --> 00:28:19,850 S1: that make sense? 479 00:28:19,890 --> 00:28:23,810 S7: Yeah. Well, here's another question that goes off of that. Um, 480 00:28:24,609 --> 00:28:29,850 S7: how much can you do through a qualified charitable deduction 481 00:28:29,850 --> 00:28:30,650 S7: each year? 482 00:28:30,930 --> 00:28:32,090 S1: Yeah. Uh. 483 00:28:32,450 --> 00:28:34,550 S7: Total lifetime or whatever it is. 484 00:28:35,390 --> 00:28:41,230 S1: Yes. So it does change by year. Uh, so for 2026, 485 00:28:41,270 --> 00:28:44,190 S1: I'm just looking up the number. I believe it is, uh, 486 00:28:44,190 --> 00:28:48,750 S1: $111,000 would be the max per person. 487 00:28:48,910 --> 00:28:50,430 S7: Okay. Per person. 488 00:28:51,510 --> 00:28:53,750 S1: So if you were married, each spouse could do their 489 00:28:53,750 --> 00:28:57,110 S1: own QC. If you had two traditional IRAs, you could 490 00:28:57,110 --> 00:28:59,230 S1: do up to 222,000. 491 00:28:59,350 --> 00:29:05,430 S7: Uh, 2000. Okay. My husband is older than I and 492 00:29:05,430 --> 00:29:08,310 S7: so I haven't yet got to that age, but he has. 493 00:29:08,310 --> 00:29:12,550 S7: So that's what I'm trying to figure out what we 494 00:29:12,550 --> 00:29:15,070 S7: can do to save money. Yeah. 495 00:29:15,110 --> 00:29:17,590 S1: So but so I'd take it if either of you 496 00:29:17,630 --> 00:29:20,190 S1: are 70.5, you ought to take full advantage of that 497 00:29:20,190 --> 00:29:23,910 S1: qualified charitable distribution. And and that number goes up every year. 498 00:29:23,910 --> 00:29:26,190 S1: But this year it's 111,000. 499 00:29:26,430 --> 00:29:29,350 S7: Oh okay then. Thank you very much. Really appreciate it. 500 00:29:29,630 --> 00:29:33,140 S1: All right. Thanks for calling. Call anytime. Uh, let's see, uh, 501 00:29:33,140 --> 00:29:37,540 S1: 800 525 7000 is the number to call. That's 800 502 00:29:37,580 --> 00:29:41,979 S1: 525 7000. We're up against our final break of the, uh, 503 00:29:41,980 --> 00:29:44,460 S1: the program, but when we come back, we'll head right 504 00:29:44,460 --> 00:29:47,580 S1: back to the phones. Mark is in Illinois, and he's 505 00:29:47,580 --> 00:29:51,060 S1: wanting to talk about qualified charitable distributions, which I'm thrilled 506 00:29:51,060 --> 00:29:53,620 S1: to do because I love that strategy. What a great 507 00:29:53,620 --> 00:29:56,940 S1: way to get more money into God's kingdom and avoid 508 00:29:56,940 --> 00:30:00,860 S1: the tax all together. Uh, not enough people are taking 509 00:30:00,860 --> 00:30:03,980 S1: advantage of that, and too many people are leaving more 510 00:30:03,980 --> 00:30:07,580 S1: money than they need in their retirement accounts and waiting 511 00:30:07,620 --> 00:30:10,420 S1: to give it away until they die. Let's do as 512 00:30:10,420 --> 00:30:12,860 S1: Ron Blue says. Do your giving while you're living so 513 00:30:12,860 --> 00:30:15,460 S1: you're knowing where it's going. I think that's a good strategy. 514 00:30:15,580 --> 00:30:18,220 S1: I'm Rob West, this is Faith and Finance Live. We'll 515 00:30:18,220 --> 00:30:20,860 S1: be right back after this break to take a few 516 00:30:20,860 --> 00:30:23,700 S1: more phone calls and help you live as a faithful steward. 517 00:30:23,700 --> 00:30:37,280 S1: Stay with us. Great to have you with us today 518 00:30:37,280 --> 00:30:39,640 S1: on Faith and Finance Live. I'm Rob West. This is 519 00:30:39,640 --> 00:30:41,760 S1: our final segment. We'll try to get to as many 520 00:30:41,760 --> 00:30:44,760 S1: calls as we can here to Illinois. Mark, go ahead 521 00:30:44,760 --> 00:30:45,640 S1: with your question. 522 00:30:46,840 --> 00:30:52,400 S8: Yes. Um, I inherited from my parents a beneficiary IRA. 523 00:30:52,440 --> 00:30:55,440 S8: They were both over 70.5 when they when they got it. 524 00:30:55,440 --> 00:30:58,080 S8: So I have to take out the RMD each year. 525 00:30:58,080 --> 00:31:01,520 S8: I'm only 64. Can I still do a qualified charitable 526 00:31:01,520 --> 00:31:05,160 S8: distribution even though I am not 71 or 70.5? 527 00:31:05,640 --> 00:31:10,520 S1: Yeah. Unfortunately not. There's a strict rule for qcds that 528 00:31:10,520 --> 00:31:13,760 S1: you must be 70.5 or older. So even though you 529 00:31:13,760 --> 00:31:18,040 S1: have an inherited IRA and you're probably on that ten year, uh, 530 00:31:18,040 --> 00:31:23,200 S1: withdrawal schedule and you're under 70.5, even though you're taking 531 00:31:23,200 --> 00:31:26,360 S1: required minimums, you are not able to leverage the qualified 532 00:31:26,360 --> 00:31:29,920 S1: charitable distribution. So what can you do? Well, number one 533 00:31:29,920 --> 00:31:32,870 S1: would be you could give the cash after the distribution. 534 00:31:32,870 --> 00:31:35,790 S1: So you take the distribution. And then you give it away. 535 00:31:35,830 --> 00:31:38,670 S1: Now you would have to be able to itemize deductions 536 00:31:38,670 --> 00:31:41,550 S1: to offset the income. So the second option would be 537 00:31:41,790 --> 00:31:46,230 S1: you could use what's called a bunching strategy where if 538 00:31:46,270 --> 00:31:49,750 S1: you don't itemize every year, maybe you could combine multiple 539 00:31:49,750 --> 00:31:54,030 S1: years of giving into one year and exceed the standard 540 00:31:54,030 --> 00:31:57,910 S1: deduction for that year and get a bigger tax benefit. Um, 541 00:31:58,430 --> 00:32:02,310 S1: you could also take, uh, taxable distribution and put it 542 00:32:02,310 --> 00:32:05,990 S1: in a donor advised fund and, you know, give, give 543 00:32:05,990 --> 00:32:09,310 S1: it over time. But the reality is none of this 544 00:32:09,310 --> 00:32:11,790 S1: is going to be as tax efficient as a QCD. 545 00:32:11,910 --> 00:32:14,630 S1: And fortunately, that's just not going to apply here. 546 00:32:14,670 --> 00:32:17,550 S8: Okay. That's all I wanted to know. Um, because it 547 00:32:17,590 --> 00:32:19,230 S8: sounds like I got to take it anyway. Why could 548 00:32:19,230 --> 00:32:19,590 S8: I do it? 549 00:32:19,630 --> 00:32:22,750 S1: Yeah. Yeah, I hear you. I appreciate your call, sir. 550 00:32:22,790 --> 00:32:25,430 S1: Call anytime. Uh, we're going to stay in Illinois. Irene. 551 00:32:25,430 --> 00:32:26,310 S1: How can I help? 552 00:32:26,310 --> 00:32:29,310 S9: Hey, Rob. Love your love. Your answers to all your questions. 553 00:32:29,310 --> 00:32:32,050 S9: You're so concise. Um. Thank you. We have a 22 554 00:32:32,050 --> 00:32:36,209 S9: year old and a 25 year old. Uh, finished college 555 00:32:36,210 --> 00:32:40,090 S9: holding jobs. Um, set up their IRAs with their companies 556 00:32:40,090 --> 00:32:44,650 S9: for four, sorry. 401k and, um, they opened up credit 557 00:32:44,650 --> 00:32:48,770 S9: cards on their own. We're not, uh, subsidizing them at all. 558 00:32:49,090 --> 00:32:52,730 S9: And it's through the bank, uh, collateral through the bank 559 00:32:52,770 --> 00:32:56,130 S9: was they put aside $8,000 if they don't pay their 560 00:32:56,130 --> 00:32:59,850 S9: credit card, of which they're paying off, uh, directly through 561 00:32:59,850 --> 00:33:03,170 S9: their checking account. Um, then they, you know, get a 562 00:33:03,170 --> 00:33:06,970 S9: bad score. They've done perfect. They both have great scores. 563 00:33:07,010 --> 00:33:10,250 S9: As a result, they're getting solicited from a lot of 564 00:33:10,250 --> 00:33:13,410 S9: credit card companies to open a second account. And some 565 00:33:13,410 --> 00:33:15,370 S9: people have said, oh, don't do it. And other people 566 00:33:15,370 --> 00:33:17,570 S9: have said, do it because it helps your credit score, 567 00:33:17,610 --> 00:33:20,210 S9: because your kids are not overspending and they're living within 568 00:33:20,210 --> 00:33:23,010 S9: their means, and they're a good risk for these cards. 569 00:33:23,170 --> 00:33:25,810 S9: Do you think it helps them get a loan for 570 00:33:25,810 --> 00:33:27,850 S9: a house in 3 to 5 years, or do you 571 00:33:27,850 --> 00:33:29,720 S9: think they should just stick with the one bank card 572 00:33:29,720 --> 00:33:32,200 S9: where they're getting they're getting no perks with this card. 573 00:33:32,240 --> 00:33:34,000 S1: Yeah. Are they paying an annual fee? 574 00:33:34,400 --> 00:33:34,880 S9: No. 575 00:33:35,360 --> 00:33:38,240 S1: Okay, great. Yeah. I don't think they necessarily need one 576 00:33:38,240 --> 00:33:41,120 S1: right now. I love that they're doing so well. They're 577 00:33:41,160 --> 00:33:44,440 S1: out of school. They've got jobs. They're trying to be responsive. Well, 578 00:33:44,440 --> 00:33:48,000 S1: they are being responsible in managing God's money. That's amazing. 579 00:33:48,000 --> 00:33:50,320 S1: So one credit card is enough to build a strong 580 00:33:50,320 --> 00:33:53,840 S1: credit history and establish a good score over time. The 581 00:33:53,840 --> 00:33:57,760 S1: key is the usage, not the quantity. Um, so what 582 00:33:57,800 --> 00:34:02,280 S1: actually builds their score is on time payments and then 583 00:34:02,280 --> 00:34:04,840 S1: keeping balances low, which you said they're using it for 584 00:34:04,840 --> 00:34:08,319 S1: budgeted items, paying it off in full. Um, and then 585 00:34:08,320 --> 00:34:11,360 S1: letting the accounts age over time. And you don't need 586 00:34:11,800 --> 00:34:16,799 S1: multiple accounts to do that. Well, now, after 12 months 587 00:34:16,800 --> 00:34:19,560 S1: of good history, would it make sense to increase the 588 00:34:19,560 --> 00:34:23,080 S1: total credit limit? Um, you know, and build a thicker 589 00:34:23,080 --> 00:34:27,239 S1: credit file. It could, I think what might be better 590 00:34:27,520 --> 00:34:30,899 S1: is either one of two things. One is called a 591 00:34:30,940 --> 00:34:36,339 S1: credit builder loan. Um, and this is basically where, you know, 592 00:34:36,380 --> 00:34:40,140 S1: you put a small amount on deposit in an account, 593 00:34:40,140 --> 00:34:42,540 S1: you make monthly payments, you get the money back at 594 00:34:42,540 --> 00:34:47,300 S1: the end. It's designed purely to build credit history. Um, 595 00:34:47,739 --> 00:34:50,740 S1: and you know, essentially it gives you a different type 596 00:34:50,739 --> 00:34:53,980 S1: of credits because this would be an installment loan versus 597 00:34:54,020 --> 00:34:56,540 S1: a revolving account, which is what a credit card is. 598 00:34:56,900 --> 00:35:00,340 S1: And you know, that's going to play into that portion 599 00:35:00,340 --> 00:35:02,500 S1: of the score that has to do with what's called 600 00:35:02,500 --> 00:35:08,020 S1: your credit mix. The credit scoring algorithm rewards different types 601 00:35:08,020 --> 00:35:10,980 S1: of credit being used responsibly. And and that's what this 602 00:35:10,980 --> 00:35:14,060 S1: credit builder loan would do. Uh, the other option would be, 603 00:35:14,100 --> 00:35:15,900 S1: and you've got to be careful with this, although you 604 00:35:15,980 --> 00:35:18,219 S1: made one key statement and that is the kids are 605 00:35:18,219 --> 00:35:23,140 S1: really responsible. Some parents will take one of their well 606 00:35:23,219 --> 00:35:26,540 S1: managed cards and that's key. You've got to have a, 607 00:35:26,580 --> 00:35:30,250 S1: you know, a very low utilization, meaning balance to limit 608 00:35:30,250 --> 00:35:32,129 S1: and you've got to be an on time payer every month. 609 00:35:32,130 --> 00:35:34,370 S1: Because if, if you miss a payment, it's not only 610 00:35:34,370 --> 00:35:36,009 S1: going to hurt you, it's going to hurt them, but 611 00:35:36,010 --> 00:35:39,170 S1: you could make them an authorized user. And if you 612 00:35:39,170 --> 00:35:42,090 S1: do that right, don't even give them the card. Your 613 00:35:42,090 --> 00:35:44,730 S1: good credit history would flow to their reports. That would 614 00:35:44,730 --> 00:35:45,930 S1: be another way you could go. 615 00:35:45,969 --> 00:35:48,609 S9: Okay. And how how long would you say that time? 616 00:35:48,650 --> 00:35:50,890 S9: Like they've had these cards now for about a year 617 00:35:50,890 --> 00:35:54,609 S9: and a half. Um, okay. Almost two years. And like 618 00:35:54,610 --> 00:35:57,690 S9: I said, it's auto pays and they do their groceries 619 00:35:57,690 --> 00:36:01,009 S9: or gas and it's pretty much the same amount every month. Both. 620 00:36:01,050 --> 00:36:03,410 S9: Both child independent of all of us. 621 00:36:04,130 --> 00:36:04,610 S1: Okay. 622 00:36:04,810 --> 00:36:05,690 S9: Independent. Yeah. 623 00:36:05,730 --> 00:36:07,370 S1: And, and so what's the question? 624 00:36:08,130 --> 00:36:11,290 S9: So how many months would you say? So they're two 625 00:36:11,290 --> 00:36:14,290 S9: years into this credit card. Should we start doing this 626 00:36:14,290 --> 00:36:16,570 S9: better credit builder now? 627 00:36:16,730 --> 00:36:18,569 S1: Yeah. I mean they'd be in a well you've got 628 00:36:18,570 --> 00:36:20,129 S1: a couple of options. They would be in a great 629 00:36:20,130 --> 00:36:22,969 S1: position to add a second card. The reason they're getting 630 00:36:23,130 --> 00:36:26,790 S1: all these solicitations is they've got two years of perfect use. 631 00:36:26,790 --> 00:36:29,790 S1: So they've built an important foundation. So at this point, 632 00:36:29,790 --> 00:36:33,270 S1: the second card would increase the total available credit and 633 00:36:33,270 --> 00:36:36,710 S1: build a thicker file. And basically what they'd probably want 634 00:36:36,750 --> 00:36:40,350 S1: to do is do one recurring charge on that second card. 635 00:36:41,110 --> 00:36:43,350 S1: You know that they pay in full, but I wouldn't 636 00:36:43,350 --> 00:36:45,310 S1: do any more than that. And make sure there's no 637 00:36:45,310 --> 00:36:47,989 S1: annual fee because there's no reason to spend money to 638 00:36:48,030 --> 00:36:51,590 S1: do this, but just put a recurring expense on it 639 00:36:51,590 --> 00:36:54,230 S1: and pay it off in full every month. But but 640 00:36:54,230 --> 00:36:56,230 S1: I wouldn't go beyond that. If you wanted to do 641 00:36:56,230 --> 00:36:58,710 S1: the credit builder loan. You know, this would be the 642 00:36:58,710 --> 00:37:01,310 S1: time to do that as well. Um, you know, where 643 00:37:01,310 --> 00:37:03,630 S1: you add a different type of credit. And then the 644 00:37:03,630 --> 00:37:06,390 S1: third option would be the, uh, the authorization. 645 00:37:06,670 --> 00:37:09,350 S9: Perfect. Thank you so much. Have a blessed Easter. And 646 00:37:09,350 --> 00:37:13,390 S9: we're so we're great to have your talent and thank you. 647 00:37:13,430 --> 00:37:16,790 S1: I appreciate that, Irene. And Lord bless you. And yes, 648 00:37:16,830 --> 00:37:19,750 S1: happy Easter. He is risen. Uh, let's talk to Ed 649 00:37:19,750 --> 00:37:21,110 S1: in Florida. Ed go ahead. Sir. 650 00:37:21,710 --> 00:37:24,589 S10: Uh, yes. Rob. Um, I've got a little bit of 651 00:37:24,590 --> 00:37:28,180 S10: money that I got from an IRA. When I got laid, 652 00:37:28,180 --> 00:37:31,700 S10: I laid off and you had a certain amount of 653 00:37:31,700 --> 00:37:36,820 S10: time to roll it over. I really didn't know how 654 00:37:36,820 --> 00:37:41,020 S10: to go about it. Um, I also wanted to put 655 00:37:41,020 --> 00:37:45,780 S10: it in something where it's not very risky and earn 656 00:37:46,420 --> 00:37:49,940 S10: more than what you would have in a savings account 657 00:37:50,060 --> 00:37:53,740 S10: or a CD. It's not a lot of money, but 658 00:37:53,739 --> 00:37:57,779 S10: I like to at least what, what what would you advise? 659 00:37:58,260 --> 00:38:01,020 S1: So it wasn't a 401 K. Now it's in an IRA. 660 00:38:02,300 --> 00:38:04,700 S10: No, it's it's on a tech. 661 00:38:05,739 --> 00:38:09,220 S1: Oh. So you have just, uh, money. That's uh, what 662 00:38:09,219 --> 00:38:11,540 S1: was the source of the funds? Where did this come from? 663 00:38:12,700 --> 00:38:16,859 S10: It came from, uh, either I don't remember exact either 664 00:38:16,860 --> 00:38:19,500 S10: 401 K or IRA. So. 665 00:38:19,540 --> 00:38:20,140 S1: Oh, okay. 666 00:38:20,380 --> 00:38:26,680 S10: They they give you that money once you got laid off. 667 00:38:27,600 --> 00:38:31,680 S10: And so, um, I was trying to figure out how 668 00:38:31,680 --> 00:38:35,640 S10: to roll it over, but then the time expired, they 669 00:38:35,640 --> 00:38:38,359 S10: send me a check and they took taxes. 670 00:38:39,200 --> 00:38:42,600 S1: Yeah. Uh, how long ago did you get that check? 671 00:38:44,480 --> 00:38:50,680 S10: Uh, probably. Let me see here about maybe six months ago. 672 00:38:50,960 --> 00:38:54,879 S1: Oh, yeah. Okay. So that's unfortunately a distribution. There's nothing 673 00:38:54,880 --> 00:38:57,200 S1: you can do about that. So you've already you've already 674 00:38:57,200 --> 00:38:58,719 S1: paid the tax on it. You're going to need to 675 00:38:58,719 --> 00:39:01,720 S1: report it on last year's tax return. Maybe you've already 676 00:39:01,719 --> 00:39:04,120 S1: done that. But that is going to be taxable to you. 677 00:39:04,120 --> 00:39:06,920 S1: So now that money the tax has been paid you 678 00:39:06,920 --> 00:39:08,600 S1: can do whatever you want with it. You can't get 679 00:39:08,600 --> 00:39:11,680 S1: it back in, uh, the retirement account without making a 680 00:39:11,680 --> 00:39:14,239 S1: new contribution, which you may want to do. But let 681 00:39:14,239 --> 00:39:17,080 S1: me ask you, do you have an emergency fund of 682 00:39:17,080 --> 00:39:19,759 S1: 3 to 6 months expenses in liquid savings? 683 00:39:20,800 --> 00:39:24,830 S10: No, I don't, that's exactly Okay. What am I thinking 684 00:39:24,830 --> 00:39:25,630 S10: to do? Yes. 685 00:39:25,670 --> 00:39:27,910 S1: Yeah. Okay. So if you had called me before and 686 00:39:27,910 --> 00:39:30,469 S1: said I've got this IRA or 41K, I would have said, 687 00:39:30,469 --> 00:39:33,150 S1: let's roll it to an IRA. Um, but now that 688 00:39:33,150 --> 00:39:36,069 S1: you've already taken the distribution, let's just put this in 689 00:39:36,070 --> 00:39:39,510 S1: high yield savings and add this to whatever other savings 690 00:39:39,510 --> 00:39:41,750 S1: you have. And you know, you could do that at 691 00:39:41,750 --> 00:39:46,830 S1: your current bank. Our friends at, uh, Adelphi Christian banking, um, 692 00:39:46,830 --> 00:39:50,870 S1: you know, are wonderful Christian Credit Union, the largest in 693 00:39:50,910 --> 00:39:55,710 S1: the country. You could go to faith.com/banking. They're paying 4% 694 00:39:55,710 --> 00:39:59,270 S1: on their money market up to 100,000 and a bonus 695 00:39:59,270 --> 00:40:02,350 S1: of up to $400 for faith by listeners. So, you know, 696 00:40:02,390 --> 00:40:05,830 S1: that would be an option. But really anything that has insurance, 697 00:40:05,830 --> 00:40:09,150 S1: either private or FDIC, where you're getting a good yield, 698 00:40:09,150 --> 00:40:13,030 S1: which right now is probably around 4% and just let it, 699 00:40:13,030 --> 00:40:16,350 S1: let it grow. And, you know, don't use it unless 700 00:40:16,350 --> 00:40:19,310 S1: you need it for an emergency. Something truly unexpected. 701 00:40:19,630 --> 00:40:22,850 S10: Right, right, right. Okay. Thank you very much, Rob. That was. 702 00:40:22,850 --> 00:40:24,650 S1: Good. All right. You're welcome. 703 00:40:24,690 --> 00:40:25,169 S10: Thank you. 704 00:40:25,410 --> 00:40:28,489 S1: Yes, sir. Appreciate your call very much. Well, folks, we 705 00:40:28,530 --> 00:40:31,010 S1: are about out of time today. But I so appreciate 706 00:40:31,010 --> 00:40:34,250 S1: your encouragement, your great questions, and for you being along 707 00:40:34,250 --> 00:40:36,370 S1: with us today. Let me circle back to one thing 708 00:40:36,370 --> 00:40:39,689 S1: I said a bit ago, and that is that we're 709 00:40:39,690 --> 00:40:41,930 S1: coming out with some new resources here at Faith fi. 710 00:40:41,930 --> 00:40:45,170 S1: We have some incredible things for this year that are planned. 711 00:40:45,170 --> 00:40:48,049 S1: A new devotional with somebody, I'll be able to tell 712 00:40:48,050 --> 00:40:50,090 S1: you about it in the next couple of months, but 713 00:40:50,090 --> 00:40:53,050 S1: really excited about some of the new products we're creating 714 00:40:53,050 --> 00:40:56,609 S1: here at Faith fi, including our new field guides and 715 00:40:56,610 --> 00:40:59,250 S1: that first field guide. How much Money is Enough is 716 00:40:59,250 --> 00:41:02,450 S1: coming out this summer, and this is something I've never 717 00:41:02,450 --> 00:41:05,009 S1: seen before. We've always wanted it. But how do you 718 00:41:05,010 --> 00:41:08,370 S1: tackle these really pressing questions that have so much to 719 00:41:08,410 --> 00:41:12,089 S1: do with our faith and our money in a way 720 00:41:12,090 --> 00:41:16,049 S1: that's biblical? So we need that biblical framing, but that's actionable. 721 00:41:16,050 --> 00:41:18,930 S1: So we actually give you the worksheets to, to actually 722 00:41:18,930 --> 00:41:22,560 S1: build your plan around that particular issue, and then some 723 00:41:22,560 --> 00:41:25,399 S1: success stories of godly people who have gone before you 724 00:41:25,400 --> 00:41:28,000 S1: that you can learn from. All in a very easy 725 00:41:28,000 --> 00:41:31,799 S1: to read, beautiful field guide. The first one coming out 726 00:41:31,800 --> 00:41:33,879 S1: this summer. How much money is enough? Then how do 727 00:41:33,880 --> 00:41:37,280 S1: I prepare the next steward? Then how do I give intentionally? 728 00:41:37,440 --> 00:41:41,000 S1: We'll also be doing one um next year on how 729 00:41:41,000 --> 00:41:43,919 S1: much inheritance is right for the kids. So we're going 730 00:41:43,960 --> 00:41:46,600 S1: to tackle really these important questions and do it in 731 00:41:46,600 --> 00:41:48,920 S1: a way that I think you're really going to enjoy. 732 00:41:49,000 --> 00:41:50,600 S1: If you want to be sure you get every one 733 00:41:50,600 --> 00:41:53,000 S1: of these resources and you love the show and want 734 00:41:53,040 --> 00:41:55,799 S1: to support our work, becoming a partner is the way 735 00:41:55,800 --> 00:41:58,319 S1: to do that. I'll send you a quarterly newsletter from 736 00:41:58,320 --> 00:42:01,640 S1: me and you'll get access to the the Pro subscription 737 00:42:01,640 --> 00:42:03,960 S1: and the Faith VI app, plus every resource mailed to 738 00:42:03,960 --> 00:42:10,000 S1: your door. Just go to faith.com/faith i.com/give faith and finance 739 00:42:10,040 --> 00:42:12,560 S1: live is a partnership between Moody Radio and Faith fi. 740 00:42:12,880 --> 00:42:15,880 S1: Thanks to my team today Josh Taylor, T Hira, Omar 741 00:42:15,880 --> 00:42:18,080 S1: and everybody here at Faith fi. We'll see you tomorrow.