1 00:00:04,200 --> 00:00:07,080 S1: The following program was pre-recorded so our phone lines are 2 00:00:07,080 --> 00:00:07,880 S1: not open. 3 00:00:08,520 --> 00:00:11,400 S2: Are you feeling the pressure to buy just one more thing? 4 00:00:11,440 --> 00:00:14,920 S2: As Christmas draws near or worry the season won't feel 5 00:00:14,920 --> 00:00:18,720 S2: special unless you spend more. Hi, I'm Rob West with 6 00:00:18,720 --> 00:00:23,760 S2: tight deadlines, emotional expectations, and last minute sales everywhere. This 7 00:00:23,760 --> 00:00:28,040 S2: is when impulse spending can quietly take over, but Scripture 8 00:00:28,040 --> 00:00:31,600 S2: offers a wiser, more freeing way to approach giving, one 9 00:00:31,600 --> 00:00:35,160 S2: rooted in love rather than pressure. Today we're talking about 10 00:00:35,159 --> 00:00:38,400 S2: emotional buying and how to stay intentional. Then we have 11 00:00:38,400 --> 00:00:40,960 S2: some great calls lined up. But we won't be taking 12 00:00:40,960 --> 00:00:45,239 S2: your calls today because we're pre-recorded. This is faith and finance. 13 00:00:45,280 --> 00:00:57,000 S2: Live biblical wisdom for your financial journey. Christmas brings out 14 00:00:57,000 --> 00:01:00,230 S2: many good desires. We want our homes to feel warm, 15 00:01:00,270 --> 00:01:04,190 S2: our families to feel loved, and our gatherings to feel joyful. 16 00:01:04,430 --> 00:01:08,750 S2: But emotional spending happens when those good desires turn into pressure, 17 00:01:08,750 --> 00:01:13,789 S2: internal or external. Suddenly we're asking, what if this isn't enough? 18 00:01:13,870 --> 00:01:16,350 S2: What will they think if I don't get something big? 19 00:01:16,510 --> 00:01:19,750 S2: Everyone else is giving more, should I? If I don't hurry, 20 00:01:19,790 --> 00:01:24,069 S2: Christmas won't feel complete. Emotional buying peaks in these final 21 00:01:24,069 --> 00:01:28,950 S2: days before Christmas. Not because we're unwise, but because we're human. 22 00:01:28,990 --> 00:01:32,470 S2: We feel the weight of expectations, the excitement of the season, 23 00:01:32,470 --> 00:01:35,789 S2: and the fear of missing out on that perfect moment. 24 00:01:35,790 --> 00:01:40,510 S2: But perfect moments aren't purchased. They're created with simple, meaningful 25 00:01:40,510 --> 00:01:45,350 S2: time together, not merely expensive gifts. Scripture grounds us in 26 00:01:45,350 --> 00:01:48,750 S2: a different rhythm. Jesus said, it is more blessed to 27 00:01:48,790 --> 00:01:52,990 S2: give than to receive. And he wasn't talking about frantic shopping. 28 00:01:52,990 --> 00:01:58,540 S2: He was talking about generosity. Joyful, intentional, heart shaped Generosity. 29 00:01:58,780 --> 00:02:02,540 S2: Paul reminds us in Colossians three two, set your minds 30 00:02:02,540 --> 00:02:06,780 S2: on things above, not on earthly things. Christmas giving becomes 31 00:02:06,780 --> 00:02:10,299 S2: a spiritual act when it flows from love, gratitude, and 32 00:02:10,300 --> 00:02:14,660 S2: thoughtfulness rather than pressure or panic. And here's the truth 33 00:02:14,780 --> 00:02:18,500 S2: many of the most meaningful gifts can't be boxed or wrapped. 34 00:02:18,620 --> 00:02:22,500 S2: Whether it's a handwritten letter, a shared meal, a family tradition, 35 00:02:22,540 --> 00:02:25,820 S2: a long walk with an aging parent, or even prayer 36 00:02:25,860 --> 00:02:29,620 S2: spoken over someone you love, these are gifts that last 37 00:02:29,660 --> 00:02:33,740 S2: gifts that shape hearts, not clutter. Closets. In these last 38 00:02:33,740 --> 00:02:38,220 S2: days before Christmas, urgency speaks louder than wisdom. The sale 39 00:02:38,220 --> 00:02:41,180 S2: might be ending. The shelves are emptying, the shipment won't 40 00:02:41,180 --> 00:02:44,300 S2: arrive on time. And suddenly our gifts come more from 41 00:02:44,300 --> 00:02:48,019 S2: a place of fear than love. But Proverbs 21 five 42 00:02:48,020 --> 00:02:51,940 S2: warns us the plans of the diligent lead surely to abundance. 43 00:02:51,940 --> 00:02:55,700 S2: But everyone who is hasty comes only to poverty. Hasty 44 00:02:55,740 --> 00:02:59,260 S2: choices don't only lead to financial strain, they lead to 45 00:02:59,300 --> 00:03:02,540 S2: emotional strain. They rob us of peace. They shift our 46 00:03:02,540 --> 00:03:06,700 S2: focus from Christ to consumption. You don't have to sprint 47 00:03:06,700 --> 00:03:10,180 S2: your way into Christmas. You can choose a different pace. 48 00:03:10,340 --> 00:03:14,260 S2: Let me offer four practical ways to avoid emotional buying 49 00:03:14,300 --> 00:03:18,500 S2: in these last days before Christmas. First, pause before you 50 00:03:18,500 --> 00:03:23,740 S2: purchase even a 32nd pause can interrupt an emotional decision. 51 00:03:23,780 --> 00:03:28,019 S2: Ask is this coming from love or from pressure? Second, 52 00:03:28,180 --> 00:03:31,780 S2: let your values set the tone, not your emotions. A 53 00:03:31,780 --> 00:03:36,180 S2: healthy budget isn't restrictive, it's clarifying. It helps your spending 54 00:03:36,180 --> 00:03:40,860 S2: reflect what matters most. Third, remember that generosity is more 55 00:03:40,900 --> 00:03:46,180 S2: than money, time, words, service, and being present. These are 56 00:03:46,260 --> 00:03:51,500 S2: gifts money can't replicate. And fourth, let Christ, not culture, 57 00:03:51,540 --> 00:03:56,130 S2: define Christmas. Before you buy something, ask, Will this help 58 00:03:56,130 --> 00:04:00,570 S2: us celebrate Jesus or simply ease a momentary fear? When 59 00:04:00,570 --> 00:04:04,050 S2: you're giving aligns with your faith rather than your fears, 60 00:04:04,050 --> 00:04:08,690 S2: Christmas becomes more meaningful, not less. Mother Teresa captured this 61 00:04:08,690 --> 00:04:11,970 S2: beautifully when she wrote, it's not how much we give, 62 00:04:12,010 --> 00:04:14,890 S2: but how much love we put into giving. What a 63 00:04:14,890 --> 00:04:19,650 S2: freeing perspective. You're not responsible for funding a flawless Christmas. 64 00:04:19,770 --> 00:04:22,450 S2: You're responsible for loving the people God has put in 65 00:04:22,450 --> 00:04:26,890 S2: your life. And love doesn't require overspending. When love leads 66 00:04:26,890 --> 00:04:31,250 S2: the way, even small gifts have great value. Simple gatherings 67 00:04:31,250 --> 00:04:36,130 S2: become sacred, and the pressure to keep up loses its power. Folks, 68 00:04:36,130 --> 00:04:40,050 S2: Christmas isn't a test of your financial ability. It's a 69 00:04:40,050 --> 00:04:44,770 S2: celebration of God's generosity toward us. The angel didn't announce, 70 00:04:44,770 --> 00:04:48,570 S2: I bring you great deals of consumer joy. He said, 71 00:04:48,570 --> 00:04:51,690 S2: I bring you good news of great joy. A Savior 72 00:04:51,690 --> 00:04:55,280 S2: has been born to you. That's the center of Christmas. 73 00:04:55,400 --> 00:04:58,560 S2: That's the peace we long for. And that's the foundation 74 00:04:58,560 --> 00:05:02,080 S2: of intentional giving. Before we close, I want to invite 75 00:05:02,080 --> 00:05:05,279 S2: you not out of pressure, but with the same intentionality 76 00:05:05,320 --> 00:05:09,080 S2: we've talked about today, to prayerfully consider partnering with us 77 00:05:09,080 --> 00:05:11,960 S2: here at Faith by a gift of $35 a month 78 00:05:11,960 --> 00:05:15,080 S2: or $400 a year, makes you a faith buy partner 79 00:05:15,080 --> 00:05:18,400 S2: and helps you equip others to be faithful stewards. A 80 00:05:18,440 --> 00:05:21,840 S2: gift of any amount will be doubled before December 31st, 81 00:05:21,839 --> 00:05:25,839 S2: and you'll receive my new devotional, Our Ultimate Treasure. Just 82 00:05:25,839 --> 00:05:29,320 S2: go to Faithfully Give. We'll be right back. 83 00:05:38,600 --> 00:05:41,800 S3: This is faith and finance. Live with Rob West. Hey, 84 00:05:41,800 --> 00:05:44,680 S3: if you hear a phone number mentioned today, please ignore 85 00:05:44,720 --> 00:05:48,080 S3: that number and don't call us because today's broadcast was 86 00:05:48,080 --> 00:05:51,839 S3: previously recorded. But we think the upcoming information will help 87 00:05:51,839 --> 00:05:54,150 S3: you and make you a wise steward of what God 88 00:05:54,150 --> 00:05:56,710 S3: has given you. So please stay tuned. 89 00:05:57,950 --> 00:06:02,190 S2: 2300 Verses in God's Word about money and possessions. Why? 90 00:06:02,310 --> 00:06:04,550 S2: Is it because God needs our money? No, it all 91 00:06:04,550 --> 00:06:07,990 S2: belongs to him. It's because he owns everything and we 92 00:06:07,990 --> 00:06:10,830 S2: need to be reminded of that. We're stewards. It's because 93 00:06:10,830 --> 00:06:15,630 S2: money reveals the heart. It really tells us what we 94 00:06:15,630 --> 00:06:20,190 S2: value most. Our financial decisions expose the true priorities of 95 00:06:20,190 --> 00:06:23,030 S2: our heart, whether we trust in God or in wealth. 96 00:06:23,029 --> 00:06:26,950 S2: And then thirdly, well, faithful stewardship leads to flourishing for 97 00:06:26,950 --> 00:06:30,710 S2: others and for eternity. You see, when we manage God's 98 00:06:30,710 --> 00:06:34,550 S2: money his way through diligent work and generous giving and 99 00:06:34,550 --> 00:06:39,230 S2: strategic faith aligned investing and wise planning, well, we experience 100 00:06:39,230 --> 00:06:43,710 S2: spiritual fruitfulness and we participate in his Kingdom purposes. That's 101 00:06:43,710 --> 00:06:46,630 S2: why we do what we do every day on this program. 102 00:06:46,630 --> 00:06:48,830 S2: Not so you can squeak out a little bit more 103 00:06:49,110 --> 00:06:52,270 S2: in the way of returns or, you know, enrich yourselves 104 00:06:52,270 --> 00:06:54,550 S2: just a little bit more so you can be fully 105 00:06:54,550 --> 00:06:59,150 S2: formed as a mature Christ follower, ready to handle God's money, 106 00:06:59,190 --> 00:07:03,150 S2: God's way. And when you do, boy, there are wonderful benefits. Now, 107 00:07:03,150 --> 00:07:05,390 S2: it doesn't mean you'll be free from challenges. We will 108 00:07:05,390 --> 00:07:09,550 S2: all struggle. We will all have our difficult seasons. Remember, 109 00:07:09,590 --> 00:07:12,310 S2: God didn't redeem us and save us for a life 110 00:07:12,310 --> 00:07:15,670 S2: of comfort. He redeemed us and saved us. For us 111 00:07:15,670 --> 00:07:18,270 S2: to find our identity in him and to live the 112 00:07:18,270 --> 00:07:21,070 S2: abundant life in him, with God as our ultimate treasure. 113 00:07:21,070 --> 00:07:24,310 S2: To use money as a tool to accomplish his purposes 114 00:07:24,310 --> 00:07:28,630 S2: and bring him glory. The goal is intimacy with the Lord. 115 00:07:28,830 --> 00:07:32,670 S2: And then we have the privilege of enjoying and stewarding and, 116 00:07:33,270 --> 00:07:37,110 S2: you know, giving and investing his resources his way. And 117 00:07:37,110 --> 00:07:38,430 S2: that's what we want to help you do each day 118 00:07:38,430 --> 00:07:41,270 S2: on this program. Now we're away from the studio today, 119 00:07:41,270 --> 00:07:43,430 S2: so don't call in. But we lined up some great 120 00:07:43,430 --> 00:07:46,430 S2: questions in advance, beginning in Kentucky here in just a moment. 121 00:07:46,430 --> 00:07:49,110 S2: But first, in the news today, a troubling trend is 122 00:07:49,110 --> 00:07:52,420 S2: emerging in the auto market, one that's putting more pressure 123 00:07:52,420 --> 00:07:56,340 S2: on household budgets. According to a new report from vehicle 124 00:07:56,340 --> 00:08:00,940 S2: pricing company Edmunds, more Americans than ever are finding themselves 125 00:08:00,980 --> 00:08:04,140 S2: upside down on their car loans. That means they owe 126 00:08:04,180 --> 00:08:07,900 S2: more than their vehicles are worth. Here's what the data shows. 127 00:08:08,140 --> 00:08:11,420 S2: More than 25% of car buyers with trade ins are 128 00:08:11,420 --> 00:08:16,220 S2: underwater on their loans. That's the highest level in four years. Second, 129 00:08:16,500 --> 00:08:22,660 S2: the average negative equity reached $6,755 in the second quarter. 130 00:08:22,700 --> 00:08:26,340 S2: That's how much you're underwater with your loan versus what 131 00:08:26,340 --> 00:08:29,620 S2: the car's worth. That's up nearly $500 from last year. 132 00:08:30,020 --> 00:08:32,540 S2: Nearly a quarter of all these borrowers are upside down 133 00:08:32,540 --> 00:08:37,540 S2: by $10,000 or more. And around 19% of consumers now 134 00:08:37,540 --> 00:08:41,459 S2: pay over. Are you ready for this? $1,000 a month 135 00:08:41,620 --> 00:08:45,060 S2: for a car loan? That's right. The average is north 136 00:08:45,059 --> 00:08:49,250 S2: of 700, but nearly 20% over a thousand a month 137 00:08:49,410 --> 00:08:54,890 S2: longer terms, some stretching even to seven years. Plus rolling 138 00:08:54,890 --> 00:08:57,969 S2: in old debt. Well, that's fueling the crisis. You know, 139 00:08:58,010 --> 00:08:59,689 S2: it's always a good idea to save as much as 140 00:08:59,690 --> 00:09:02,010 S2: you can for a down payment, whether you're buying a 141 00:09:02,010 --> 00:09:05,330 S2: house or a car. And that certainly applies here. If 142 00:09:05,330 --> 00:09:07,650 S2: you do have to borrow when the loan is paid off, 143 00:09:07,690 --> 00:09:11,330 S2: what about keeping those payments going into a savings account 144 00:09:11,330 --> 00:09:14,610 S2: to yourself? So now you'll have a substantial down payment. 145 00:09:14,610 --> 00:09:17,410 S2: Or better yet, be ready to buy with cash when 146 00:09:17,410 --> 00:09:19,450 S2: you buy that next one. Because remember, you're going to 147 00:09:19,450 --> 00:09:22,969 S2: drive it till the wheels fall off. My last minivan 148 00:09:22,970 --> 00:09:25,890 S2: that Julie and I basically turned in when we got 149 00:09:25,890 --> 00:09:30,689 S2: our next car, um, had 230,000 miles on it. I mean, 150 00:09:30,730 --> 00:09:32,730 S2: that thing had some wear on it, but that's how 151 00:09:32,730 --> 00:09:35,770 S2: you get the most value out of these vehicles, and 152 00:09:35,770 --> 00:09:37,890 S2: I think even allows you to buy new because you're 153 00:09:37,890 --> 00:09:40,170 S2: going to plan on driving it, you know, as long 154 00:09:40,170 --> 00:09:42,810 S2: as you can. So anyway, something to, uh, be careful 155 00:09:42,809 --> 00:09:44,970 S2: there on, you know, as we think about the big 156 00:09:44,970 --> 00:09:48,160 S2: budget busters, uh, there's three of them. Uh, you won't 157 00:09:48,160 --> 00:09:52,240 S2: be surprised. I'll give them in order of easiest to 158 00:09:52,280 --> 00:09:56,440 S2: rectify to most difficult. Biggest number one. What do you 159 00:09:56,440 --> 00:10:00,440 S2: think it is? It's food. Yeah. I mean, especially now, uh, 160 00:10:00,440 --> 00:10:02,959 S2: eating out, you know, prices are up. Prices are up 161 00:10:02,960 --> 00:10:06,240 S2: at the grocery store. They've certainly leveled off from the, uh, 162 00:10:06,240 --> 00:10:09,800 S2: the Biden era inflation that we saw. But, um, you know, 163 00:10:09,840 --> 00:10:13,320 S2: still very challenging. That can be fixed. The second big 164 00:10:13,320 --> 00:10:16,960 S2: budget buster is this one here, transportation. So we've got 165 00:10:16,960 --> 00:10:19,920 S2: to get to a place where we can afford what 166 00:10:19,920 --> 00:10:23,040 S2: we're buying. I realized more challenging car prices are up, 167 00:10:23,040 --> 00:10:26,000 S2: but we've got to make sure it fits in the budget. Thirdly. Yeah, 168 00:10:26,000 --> 00:10:28,400 S2: this one's the most difficult. It's housing. It's buying too 169 00:10:28,400 --> 00:10:31,640 S2: much house. So food, transportation, housing. Those are the big 170 00:10:31,640 --> 00:10:34,680 S2: three budget busters. If you get those in line, everything 171 00:10:34,679 --> 00:10:38,200 S2: else kind of falls into place. Uh, really important to, uh, 172 00:10:38,200 --> 00:10:40,400 S2: to work on that. All right. Let's dive into those 173 00:10:40,400 --> 00:10:43,160 S2: questions today. Uh, we're going to begin in Kentucky with John. 174 00:10:43,160 --> 00:10:43,880 S2: Go ahead sir. 175 00:10:44,640 --> 00:10:47,270 S4: Hey, Rob, thank you very much for taking my call. 176 00:10:48,030 --> 00:10:50,830 S4: I had a question for you about my 41K. Um, 177 00:10:50,990 --> 00:10:55,670 S4: I am, uh, I work for a fortune 100 company. Um, 178 00:10:55,670 --> 00:10:59,429 S4: been there for a long time. 52 years old. Have a, uh, 179 00:10:59,630 --> 00:11:04,429 S4: have A41K and and over the years, I have invested, um, 180 00:11:04,790 --> 00:11:07,790 S4: in my 401 k within my, my own company stock. 181 00:11:07,790 --> 00:11:11,950 S4: I have about 70. I have about 71% of my 182 00:11:11,990 --> 00:11:17,189 S4: 401 K invested in my company stock. Um, and that 183 00:11:17,190 --> 00:11:21,590 S4: has that has been over the past few years, generating 184 00:11:21,630 --> 00:11:26,550 S4: a between a 30 and a 36% return for me. Um, 185 00:11:26,910 --> 00:11:30,870 S4: so it has it has grown exponentially. It's it's great. 186 00:11:30,870 --> 00:11:35,630 S4: But my question is this, um, I didn't know, uh, 187 00:11:35,670 --> 00:11:38,030 S4: like I said, I'm 52, so I didn't know exactly 188 00:11:38,030 --> 00:11:42,790 S4: when I needed to start, uh, diversifying that a little 189 00:11:42,790 --> 00:11:49,829 S4: bit more, putting it into something a little more safe. Um, to, uh. Well, 190 00:11:49,870 --> 00:11:52,710 S4: basically just to to make sure that I didn't lose it. 191 00:11:52,710 --> 00:11:55,670 S4: I know stocks can be risky. I have super amount 192 00:11:55,670 --> 00:11:59,949 S4: of confidence in my company. Um, and they're, they're projected 193 00:11:59,950 --> 00:12:03,550 S4: to grow another, you know, 20% this year. So, um, 194 00:12:03,590 --> 00:12:05,910 S4: on one hand, I kind of want to gamble and, 195 00:12:05,950 --> 00:12:08,630 S4: you know, keep it there and let it grow and 196 00:12:08,630 --> 00:12:10,750 S4: make sure that I've got enough for retirement. But at 197 00:12:10,750 --> 00:12:12,510 S4: the same time, I want to be I want to 198 00:12:12,510 --> 00:12:15,550 S4: be safe about it and, uh, and make sure that I, 199 00:12:15,550 --> 00:12:18,870 S4: that I'm doing, uh, well, that's it, just to be 200 00:12:18,870 --> 00:12:21,069 S4: safe about it. Yeah. What are you what are your thoughts? 201 00:12:21,110 --> 00:12:24,390 S2: Well, I have some thoughts, as you might imagine. And, uh. Yeah, 202 00:12:24,390 --> 00:12:27,870 S2: I think that's the key is you are introducing elevated 203 00:12:27,870 --> 00:12:31,470 S2: risk here by being so highly concentrated. And the classic 204 00:12:31,470 --> 00:12:34,829 S2: example and I realize, you know, this is not your 205 00:12:34,830 --> 00:12:39,429 S2: typical everyday event. And yet it's real and it's possible. 206 00:12:39,429 --> 00:12:43,940 S2: And I think it just underscores the risk. And it's Enron. Uh, 207 00:12:43,940 --> 00:12:46,420 S2: you know what happened with Enron? Well, you probably remember 208 00:12:46,420 --> 00:12:50,699 S2: in the early 2000, it was a high flying energy company. Uh, 209 00:12:50,700 --> 00:12:53,340 S2: the the employees were in love with the prospects of 210 00:12:53,340 --> 00:12:56,979 S2: the company. Many had most or all of their 401 211 00:12:56,980 --> 00:13:01,540 S2: K invested in Enron stock. And when the company collapsed 212 00:13:01,540 --> 00:13:05,900 S2: due to accounting fraud, employees lost both their jobs and 213 00:13:05,900 --> 00:13:09,620 S2: their retirement savings overnight. You know, some lost hundreds of 214 00:13:09,620 --> 00:13:13,459 S2: thousands of dollars with little time to recover before retirement. 215 00:13:13,460 --> 00:13:16,300 S2: And so I think the the takeaway here is, you know, 216 00:13:16,340 --> 00:13:20,700 S2: heeding the counsel of Scripture, particularly in the book of Ecclesiastes, 217 00:13:20,740 --> 00:13:24,380 S2: around diversification, don't put all your eggs in one basket, 218 00:13:24,380 --> 00:13:27,900 S2: spread the risk. Because no matter how great your company is, 219 00:13:28,059 --> 00:13:32,420 S2: concentrated stock is risky. And so a healthy 401 K 220 00:13:32,460 --> 00:13:37,460 S2: is diversified across sectors and companies to protect your future. 221 00:13:37,500 --> 00:13:41,260 S2: Even if your company has done well for you and 222 00:13:41,410 --> 00:13:44,370 S2: has a bright future ahead of it. So, you know, 223 00:13:44,450 --> 00:13:48,530 S2: we're we're with the lack of diversification, we're introducing more risk. 224 00:13:48,530 --> 00:13:51,490 S2: And at 52, you're getting closer to retirement. You've still 225 00:13:51,530 --> 00:13:54,010 S2: got time on your side. But I think now is 226 00:13:54,010 --> 00:13:57,250 S2: the time to begin to diversify. Now, could you keep 227 00:13:57,330 --> 00:14:00,890 S2: an elevated position beyond what we would typically have, which 228 00:14:00,890 --> 00:14:04,890 S2: would be no more than 10% sure, but 71% of 229 00:14:04,890 --> 00:14:08,329 S2: your 401 K, I think is just unnecessarily risky. Does 230 00:14:08,330 --> 00:14:09,050 S2: that make sense? 231 00:14:09,730 --> 00:14:11,770 S4: It does. So you think that I should go ahead 232 00:14:11,770 --> 00:14:16,210 S4: and start like just diversifying it or starting now? 233 00:14:16,610 --> 00:14:19,690 S2: I would I'd start doing it over time and maybe 234 00:14:19,690 --> 00:14:22,650 S2: get down to a target 20%. Stay on the line. 235 00:14:22,650 --> 00:14:35,930 S2: We'll be right back. So glad to have you with 236 00:14:35,930 --> 00:14:39,010 S2: us today on Faith and Finance Live. Our team is 237 00:14:39,010 --> 00:14:41,920 S2: away today, so don't call in. But we lined up 238 00:14:41,920 --> 00:14:44,120 S2: some great questions in advance and we'll be going to 239 00:14:44,120 --> 00:14:46,880 S2: those here in just a moment. Let me also remind 240 00:14:46,880 --> 00:14:49,000 S2: you that the advice that I give each day on 241 00:14:49,000 --> 00:14:54,000 S2: this program is general in nature. We offer principles and 242 00:14:54,040 --> 00:14:57,760 S2: ideas that apply at a high level. They are not personalized. 243 00:14:57,760 --> 00:15:01,640 S2: So that's why you should always seek professional financial advice. 244 00:15:01,640 --> 00:15:04,400 S2: And if you'd like to find a professional who shares 245 00:15:04,400 --> 00:15:07,240 S2: your values, we of course, here at Faith and Finance 246 00:15:07,280 --> 00:15:11,200 S2: Live recommend the Certified Kingdom Advisor designation. These are men 247 00:15:11,200 --> 00:15:14,320 S2: and women who've met high standards, and they've been trained 248 00:15:14,320 --> 00:15:17,200 S2: to bring a biblical worldview of financial decision making. You 249 00:15:17,200 --> 00:15:19,880 S2: can find one at Faith comm. All right, let's head 250 00:15:19,880 --> 00:15:22,200 S2: back to the phones. Let's head to Virginia. Hi, Michelle. 251 00:15:22,240 --> 00:15:22,840 S2: Go ahead. 252 00:15:23,120 --> 00:15:28,040 S5: So my husband turned 62 last December, and I'm 58. 253 00:15:28,600 --> 00:15:31,360 S5: So I know we have the option to start collecting 254 00:15:31,400 --> 00:15:35,720 S5: Social Security now. Um, my question is whether or not 255 00:15:35,720 --> 00:15:38,640 S5: we should. We do have a business of our own. 256 00:15:39,400 --> 00:15:42,640 S5: So we are still earning an income between that and 257 00:15:42,640 --> 00:15:47,400 S5: a small retirement that I'm getting every month. Um, one 258 00:15:47,400 --> 00:15:50,360 S5: thing that concerns me is if we start collecting Social 259 00:15:50,360 --> 00:15:53,120 S5: Security now, does that mean we have to start collecting 260 00:15:53,160 --> 00:15:54,680 S5: or start paying for Medicare? 261 00:15:55,080 --> 00:15:58,360 S2: No, no you don't. Those two are separate. But I 262 00:15:58,360 --> 00:16:01,400 S2: think there are some considerations here as you think about this. 263 00:16:01,400 --> 00:16:04,960 S2: Because remember, if he takes it at at 62, he's 264 00:16:04,960 --> 00:16:08,840 S2: going to take a permanent, uh, you know, cut at 62, 265 00:16:08,880 --> 00:16:13,200 S2: probably around 30% less than he would have received at 266 00:16:13,200 --> 00:16:17,240 S2: full retirement age. So those benefits, um, you know, are 267 00:16:17,280 --> 00:16:21,480 S2: going to be, you know, pretty significantly reduced. And he 268 00:16:21,480 --> 00:16:25,200 S2: also has the opportunity to earn more than his, uh, 269 00:16:25,360 --> 00:16:27,640 S2: benefit that he would expect to get at full retirement 270 00:16:27,640 --> 00:16:30,760 S2: age if you all wait until age 70. So rather 271 00:16:30,760 --> 00:16:33,680 S2: than waiting until full retirement age, you could wait beyond that. 272 00:16:33,680 --> 00:16:38,270 S2: So what are the factors to consider as you decide this, 273 00:16:38,670 --> 00:16:40,990 S2: as you make this decision. Well, the first is health 274 00:16:40,990 --> 00:16:43,870 S2: and longevity. So if you're both in good health, you 275 00:16:43,870 --> 00:16:47,390 S2: have a family history of living longer. I think waiting 276 00:16:47,390 --> 00:16:50,310 S2: can really pay off. Um, you know, at least a 277 00:16:50,310 --> 00:16:53,430 S2: full retirement age. So you get the full benefit, um, 278 00:16:53,470 --> 00:16:56,550 S2: if not until age 70. And by the way, you know, 279 00:16:56,590 --> 00:16:59,270 S2: if you gave up, uh, you know, the what you 280 00:16:59,270 --> 00:17:01,910 S2: would have been receiving between full retirement age, let's call 281 00:17:01,910 --> 00:17:05,750 S2: it 67 and age 73 years of benefits. It'll take 282 00:17:05,750 --> 00:17:09,070 S2: you 12 years with that check you'd get at age, 283 00:17:09,070 --> 00:17:12,790 S2: starting at age 70. That's about 25% higher. It'd take 284 00:17:12,830 --> 00:17:16,190 S2: you about 12 years to age 82 to get paid 285 00:17:16,190 --> 00:17:19,270 S2: back for everything. You gave up between 67 and 70. 286 00:17:19,430 --> 00:17:22,389 S2: But then from 82 until the Lord calls you home, 287 00:17:22,390 --> 00:17:26,510 S2: you'd have that higher check, uh, by about 25%, which, 288 00:17:26,550 --> 00:17:29,189 S2: you know, can be a game changer. Uh, the second 289 00:17:29,190 --> 00:17:32,630 S2: factor is income needs. If you need the income now 290 00:17:32,630 --> 00:17:36,020 S2: to make ends meet, then starting early may be necessary, 291 00:17:36,020 --> 00:17:38,660 S2: but in your case, you all have a business. It's 292 00:17:38,660 --> 00:17:41,820 S2: providing income. And I think given the fact that you 293 00:17:41,820 --> 00:17:45,340 S2: really don't need the money. Delaying even just a few 294 00:17:45,380 --> 00:17:49,420 S2: years will give you that monthly check that's significantly higher 295 00:17:49,420 --> 00:17:52,460 S2: for the rest of your life. Um, in terms of 296 00:17:52,500 --> 00:17:56,220 S2: a spousal benefit strategy, um, you know, I think that's 297 00:17:56,220 --> 00:17:59,740 S2: another issue is, um, you know, because he's 62 and 298 00:17:59,740 --> 00:18:02,820 S2: has no retirement savings, it may be wise for him 299 00:18:02,820 --> 00:18:06,100 S2: to wait to claim so his benefit grows, and that 300 00:18:06,100 --> 00:18:11,340 S2: would then provide a higher survivor's benefit if he passes 301 00:18:11,340 --> 00:18:15,540 S2: first and then finally his tax considerations. So taking benefits 302 00:18:15,540 --> 00:18:18,420 S2: while he's still working is going to result in benefits 303 00:18:18,420 --> 00:18:22,699 S2: being taxed, uh, or reduced if your income is over 304 00:18:22,740 --> 00:18:26,660 S2: certain thresholds. Um, and so that's where I think waiting 305 00:18:26,820 --> 00:18:30,300 S2: could ensure that you pay as little as tax as possible. Uh, 306 00:18:30,300 --> 00:18:32,180 S2: and you don't have those benefits withheld. 307 00:18:32,780 --> 00:18:35,770 S5: Okay. Tell me again about the taxes. Can you explain 308 00:18:35,770 --> 00:18:36,210 S5: that one? 309 00:18:36,250 --> 00:18:39,850 S2: I'd be happy to. So the Social Security is taxable 310 00:18:40,090 --> 00:18:46,010 S2: based on your total, uh, combined income. Uh, so, you know, 311 00:18:46,050 --> 00:18:49,490 S2: by you working and you all having a business that's 312 00:18:49,490 --> 00:18:53,330 S2: paying you income, that's going to raise your overall income. 313 00:18:53,330 --> 00:18:57,010 S2: And now then, if he adds Social Security to that, 314 00:18:57,369 --> 00:19:00,330 S2: the amount of tax that is going to be paid 315 00:19:00,330 --> 00:19:03,530 S2: on the Social Security is going to be higher. And 316 00:19:03,530 --> 00:19:05,929 S2: so if you wait and take it when you all 317 00:19:05,930 --> 00:19:08,609 S2: are no longer working, because maybe you've sold the business 318 00:19:08,730 --> 00:19:11,650 S2: and therefore your taxable income is lower, you may not 319 00:19:11,650 --> 00:19:14,770 S2: have to pay, you know, tax on Social Security at all. 320 00:19:15,050 --> 00:19:17,810 S2: And that's where you know, that, um, you know, can 321 00:19:17,810 --> 00:19:19,730 S2: really be helpful, if that makes sense. 322 00:19:20,330 --> 00:19:24,609 S5: Okay. Right. Um, couple other quick things. Do you think 323 00:19:24,609 --> 00:19:27,689 S5: the fact that we're considering buying a home to restore 324 00:19:27,690 --> 00:19:30,489 S5: it or rent it out, uh, to, to restore it 325 00:19:30,490 --> 00:19:33,930 S5: and then either rent it out or sell it. So 326 00:19:33,970 --> 00:19:36,050 S5: in other words, that's another way we want to invest 327 00:19:36,050 --> 00:19:40,930 S5: our money. Will that have any effect on whether we 328 00:19:40,970 --> 00:19:43,209 S5: collect Social Security now or not? I mean, what if 329 00:19:43,210 --> 00:19:45,730 S5: we were to take that money that we're getting now 330 00:19:45,730 --> 00:19:49,129 S5: that we don't need and just reinvesting it in something else, 331 00:19:49,410 --> 00:19:52,170 S5: whether it be that or mutual funds or whatever? 332 00:19:52,410 --> 00:19:56,450 S2: Yes. Yeah. You know, I think the difference though here 333 00:19:56,450 --> 00:19:58,250 S2: is that, you know, if we just look at the 334 00:19:58,250 --> 00:20:01,090 S2: Social Security by itself and then we'll talk about, you know, 335 00:20:01,130 --> 00:20:04,369 S2: you all getting into a home restoration business, which is 336 00:20:04,369 --> 00:20:09,450 S2: basically another business. Um, you're going to get a guaranteed 8% 337 00:20:09,450 --> 00:20:13,129 S2: increase on that Social Security every year. You wait, you're 338 00:20:13,130 --> 00:20:16,050 S2: not going. There is no guaranteed 8% increase in the 339 00:20:16,050 --> 00:20:19,010 S2: stock market. You may get 8% a year. You may 340 00:20:19,010 --> 00:20:21,929 S2: do better, but you also may do worse. And so 341 00:20:22,090 --> 00:20:25,449 S2: this idea that every year you wait to get closer 342 00:20:25,450 --> 00:20:28,850 S2: to Social Security, the fact that that monthly check from 343 00:20:28,850 --> 00:20:31,920 S2: Social Security is going to go up by 8% on 344 00:20:31,920 --> 00:20:35,520 S2: a guaranteed basis is something that I think could really 345 00:20:35,520 --> 00:20:38,280 S2: be beneficial down the road, especially if you all aren't 346 00:20:38,280 --> 00:20:42,040 S2: sitting on a ton of retirement savings. That monthly income 347 00:20:42,040 --> 00:20:45,080 S2: from Social Security is going to be pretty important in 348 00:20:45,119 --> 00:20:47,640 S2: terms of you all being able to have consistent income 349 00:20:47,640 --> 00:20:50,920 S2: to cover your lifestyle. So I would think especially in 350 00:20:50,920 --> 00:20:54,400 S2: this season, while you don't need it, letting that continue 351 00:20:54,400 --> 00:20:57,840 S2: to grow so it provides a really solid base of 352 00:20:57,840 --> 00:21:01,359 S2: income in retirement is pretty key. Now, if you're saying, listen, 353 00:21:01,560 --> 00:21:05,560 S2: our ability to do some of these other investments, whether that's, 354 00:21:05,720 --> 00:21:08,800 S2: you know, the stock market or, you know, um, you know, 355 00:21:08,840 --> 00:21:11,560 S2: restoring homes and selling them at a profit, you know, 356 00:21:11,600 --> 00:21:14,240 S2: we believe we could take that Social Security money today 357 00:21:14,240 --> 00:21:17,119 S2: and turn it into something much bigger. Uh, just because 358 00:21:17,119 --> 00:21:19,760 S2: we have a skill set here or we see an opportunity, 359 00:21:19,800 --> 00:21:21,119 S2: you know, you're just going to have to make a 360 00:21:21,119 --> 00:21:23,480 S2: judgment call on that. I would not be able to 361 00:21:23,520 --> 00:21:26,160 S2: comment on that. I would just say I would be 362 00:21:26,160 --> 00:21:31,189 S2: really thoughtful about giving up that guaranteed increase by waiting, um, 363 00:21:31,190 --> 00:21:33,310 S2: you know, to, to get that higher check from Social 364 00:21:33,310 --> 00:21:36,390 S2: Security and have a lot of confidence that you could 365 00:21:36,390 --> 00:21:39,030 S2: do better by getting that money now and doing something 366 00:21:39,030 --> 00:21:42,469 S2: with it than relying on that guaranteed 8% from the 367 00:21:42,470 --> 00:21:45,710 S2: Social Security Administration. So anyway, hopefully that gives you a 368 00:21:45,710 --> 00:21:48,109 S2: few things to think about. Michelle, I realize that's a 369 00:21:48,109 --> 00:21:51,270 S2: a tough question to answer. Perhaps getting with an advisor 370 00:21:51,270 --> 00:21:53,229 S2: to talk all this through would be helpful. You can 371 00:21:53,230 --> 00:21:57,870 S2: find a certified Kingdom advisor on our website. Com we'll 372 00:21:57,869 --> 00:22:05,470 S2: be right back. Delighted to have you with us today 373 00:22:05,470 --> 00:22:08,430 S2: on Faith and Finance Live. We're not here today. Our 374 00:22:08,430 --> 00:22:11,150 S2: team is away from the studio. This is pre-recorded, so 375 00:22:11,150 --> 00:22:13,470 S2: don't call in. But we've got some great questions we 376 00:22:13,510 --> 00:22:15,909 S2: lined up in advance before we go to the phones, 377 00:22:15,910 --> 00:22:18,790 S2: let me remind you, faith and faith in finance live 378 00:22:18,790 --> 00:22:21,510 S2: is listener supported. If you'd like to be a financial partner, 379 00:22:21,510 --> 00:22:25,109 S2: you can do that at Faith. Com just click give 380 00:22:25,150 --> 00:22:29,179 S2: thanks in advance. All right. Let's go to Indiana. Hi, Gloria. 381 00:22:29,220 --> 00:22:29,740 S2: Go ahead. 382 00:22:30,060 --> 00:22:35,580 S6: My father is 97 years old. I am his guardian. Um, 383 00:22:35,740 --> 00:22:39,780 S6: he does receive Medicaid at this point to help with 384 00:22:39,780 --> 00:22:46,580 S6: his nursing home care. Um, I did recently sell his property. 385 00:22:46,820 --> 00:22:50,060 S6: There will be a spin down that will be necessary. 386 00:22:50,340 --> 00:22:54,420 S6: My dad has already paid for his cremation. Didn't want 387 00:22:54,420 --> 00:22:57,100 S6: to have anything more than that. Doesn't mean that I 388 00:22:57,100 --> 00:23:00,900 S6: won't do it. But anyway, um. So my question is, 389 00:23:01,820 --> 00:23:07,540 S6: after the spin down to cover any of his remaining expenses. Um, 390 00:23:07,540 --> 00:23:10,020 S6: where should I direct his money? 391 00:23:10,580 --> 00:23:11,020 S3: Hmm. 392 00:23:11,140 --> 00:23:14,740 S2: Yeah. Well, uh, to your point, uh, if he's on 393 00:23:14,740 --> 00:23:17,700 S2: Medicaid and a property was sold, then those account as 394 00:23:17,700 --> 00:23:21,260 S2: available assets. And so that's why that spin down is 395 00:23:21,260 --> 00:23:25,380 S2: occurring before Medicaid continues to pay for his care. So 396 00:23:25,380 --> 00:23:29,690 S2: you report the sale, a new asset value to the state, 397 00:23:30,290 --> 00:23:35,369 S2: then is created, and then you use the funds for 398 00:23:35,369 --> 00:23:37,889 S2: his direct benefit. So that can be nursing home and 399 00:23:37,890 --> 00:23:42,890 S2: private care costs, medical needs not covered by Medicaid, personal items, 400 00:23:42,890 --> 00:23:48,370 S2: clothing and you know, things like that. Prepaid funeral arrangements. Um, 401 00:23:48,450 --> 00:23:50,970 S2: you know, in some states, uh, you don't want to 402 00:23:50,970 --> 00:23:54,530 S2: gift the money because that could violate medicaid's rules and 403 00:23:54,530 --> 00:23:57,410 S2: then trigger a penalty. So, you know, you just have 404 00:23:57,450 --> 00:24:00,770 S2: as the fiduciary or the Guardian responsibility to use the 405 00:24:00,770 --> 00:24:04,130 S2: money only for your father's benefit and in accordance with 406 00:24:04,130 --> 00:24:07,770 S2: the Medicaid rules. And then once it's spent down, then 407 00:24:07,810 --> 00:24:10,810 S2: at that point you have the ability, um, you know, 408 00:24:10,850 --> 00:24:13,930 S2: then to resume Medicaid. But was there something other than 409 00:24:13,930 --> 00:24:15,370 S2: that that you were looking for? 410 00:24:15,850 --> 00:24:20,010 S6: I'm very interested in making sure that my father is 411 00:24:20,010 --> 00:24:23,810 S6: able to use his remaining money to pay for his 412 00:24:23,810 --> 00:24:28,369 S6: care at the nursing facility, and some family members feel 413 00:24:28,369 --> 00:24:32,369 S6: like that. That's the wrong way to spend his money. Um, 414 00:24:32,650 --> 00:24:36,290 S6: for me and my value system and my father's has 415 00:24:36,290 --> 00:24:40,050 S6: been we pay our own way as long as we can. 416 00:24:40,330 --> 00:24:44,210 S6: And then if we can't, then that's different. Um, he's 417 00:24:44,210 --> 00:24:46,690 S6: been in the facility where he's at right now for 418 00:24:46,690 --> 00:24:50,010 S6: just three months, and he was allowed to do that 419 00:24:50,010 --> 00:24:54,609 S6: through Medicare. The 90 day deal. But now we need 420 00:24:54,609 --> 00:24:59,690 S6: the Medicaid, um, in order to be able to continue, 421 00:25:00,170 --> 00:25:04,570 S6: you know, with him being able to stay where he's at. And, um, 422 00:25:04,570 --> 00:25:06,530 S6: I don't know if that makes any sense to you, 423 00:25:06,530 --> 00:25:09,570 S6: but now we have that little bit of money. 424 00:25:09,770 --> 00:25:13,450 S2: Yeah. So is that a medicaid approved facility that he's 425 00:25:13,450 --> 00:25:14,410 S2: in currently? 426 00:25:14,570 --> 00:25:17,130 S6: Yes. And I want to keep him there. 427 00:25:17,290 --> 00:25:20,450 S2: Sure. And I would completely concur with what you and 428 00:25:20,450 --> 00:25:24,090 S2: your dad are experiencing. And that is it's understandable. And 429 00:25:24,090 --> 00:25:27,440 S2: I think God honoring to use your own money for 430 00:25:27,440 --> 00:25:30,960 S2: your care. And that's actually how Medicaid is designed to work. 431 00:25:31,200 --> 00:25:34,679 S2: I mean, Medicaid is a last resort. It's for people 432 00:25:34,680 --> 00:25:37,960 S2: who can't afford care on their own. And so I 433 00:25:37,960 --> 00:25:41,280 S2: think if if your father has assets or new income, 434 00:25:41,280 --> 00:25:44,760 S2: like from a home sale, then he's expected to spend 435 00:25:44,760 --> 00:25:48,200 S2: that on his own care first. And then once those 436 00:25:48,240 --> 00:25:52,560 S2: funds are used appropriately, then he can reapply for Medicaid 437 00:25:52,680 --> 00:25:56,360 S2: to resume coverage. Um, you know, so I think using 438 00:25:56,359 --> 00:26:00,440 S2: funds for his care is completely appropriate and avoids potential 439 00:26:00,440 --> 00:26:03,520 S2: legal or ethical issues, not to mention just what we 440 00:26:03,520 --> 00:26:06,760 S2: should do as Christ followers. And so I think the 441 00:26:06,760 --> 00:26:09,160 S2: approach you and your father want to take on this 442 00:26:09,160 --> 00:26:10,520 S2: is exactly the right one. 443 00:26:11,960 --> 00:26:14,520 S6: Okay. Thank you. I do appreciate that we do have 444 00:26:14,520 --> 00:26:18,120 S6: an elder attorney because we had family issues, and I 445 00:26:18,119 --> 00:26:21,440 S6: just wanted to make sure that I covered the bases 446 00:26:21,440 --> 00:26:24,990 S6: and that I had everything recorded with the court system. 447 00:26:25,230 --> 00:26:28,790 S6: And so that is into place. And I just felt 448 00:26:28,790 --> 00:26:31,389 S6: like that no matter what, my dad's money needs to 449 00:26:31,430 --> 00:26:34,950 S6: follow him. Not anybody else or anything else. 450 00:26:35,430 --> 00:26:39,590 S2: Yes. Well, that's exactly right. And that's really the purpose 451 00:26:39,590 --> 00:26:43,790 S2: of it. And that's how Medicaid was designed to work. Now, 452 00:26:43,830 --> 00:26:47,590 S2: with an elder care attorney, there are, you know, certain, uh, 453 00:26:47,590 --> 00:26:53,149 S2: strategies they can use, uh, where they can protect assets legally. And, 454 00:26:53,190 --> 00:26:55,790 S2: you know, they can help to clarify Medicaid rules because 455 00:26:55,790 --> 00:26:58,230 S2: they do vary by state. And make sure, you know, 456 00:26:58,270 --> 00:27:02,550 S2: you avoid penalties and create family peace when siblings disagree. 457 00:27:02,550 --> 00:27:03,990 S2: But I think at the end of the day, I 458 00:27:03,990 --> 00:27:06,270 S2: would align with the way you and your father are 459 00:27:06,270 --> 00:27:08,910 S2: looking at it, as God has provided these resources to 460 00:27:08,910 --> 00:27:12,909 S2: your dad, regardless of how they were generated, it all 461 00:27:12,910 --> 00:27:16,909 S2: belongs to God entrusted to him, including the proceeds of 462 00:27:16,910 --> 00:27:19,030 S2: the sale of this home. It's to be used for 463 00:27:19,030 --> 00:27:21,859 S2: his benefit and his care, and at which point he 464 00:27:21,859 --> 00:27:25,020 S2: no longer has those. What a blessing that there is 465 00:27:25,020 --> 00:27:27,780 S2: a government safety net in the form of Medicaid that 466 00:27:27,780 --> 00:27:29,940 S2: will step in. So I think you're on the right 467 00:27:29,980 --> 00:27:33,420 S2: track here, Gloria, and hopefully that was an encouragement to 468 00:27:33,420 --> 00:27:35,939 S2: you and we appreciate your call today. Thanks for loving 469 00:27:35,940 --> 00:27:37,940 S2: and caring for your dad so well in this season 470 00:27:37,980 --> 00:27:40,859 S2: of life that honors the Lord, for sure. Let's go 471 00:27:40,859 --> 00:27:43,699 S2: to Tennessee. Gerald, you've been waiting very patiently, sir. Go ahead. 472 00:27:44,100 --> 00:27:48,300 S7: Yeah. Thank you. Rob. Um, we are in the process 473 00:27:48,300 --> 00:27:54,060 S7: of a signed contract. Closure expected. Um. Uh, we sold 474 00:27:54,060 --> 00:27:58,580 S7: the house for 225,000. We bought the house at about 475 00:27:58,580 --> 00:28:03,459 S7: one 3132 somewhere in there. So the question really, at 476 00:28:03,460 --> 00:28:06,460 S7: this point is, what do we do about taxes? 477 00:28:07,180 --> 00:28:10,220 S2: Yeah. Well, you shouldn't have any because the the rule 478 00:28:10,220 --> 00:28:13,020 S2: is this if you owned and lived in the home 479 00:28:13,020 --> 00:28:16,780 S2: as your principal residence for at least two of the 480 00:28:16,780 --> 00:28:22,179 S2: five years, going back from the date of the sale backwards. Uh, 481 00:28:22,180 --> 00:28:25,740 S2: then you if you are filing as a married couple, 482 00:28:25,740 --> 00:28:30,220 S2: filing jointly, you can exclude a half $1 million in 483 00:28:30,220 --> 00:28:34,020 S2: capital gains from any capital gains tax, and you can 484 00:28:34,020 --> 00:28:35,859 S2: do up to a quarter of $1 million as a 485 00:28:35,859 --> 00:28:38,260 S2: single filer. So as long as you lived, you know, 486 00:28:38,300 --> 00:28:40,020 S2: from the date of the sale, going back, if you 487 00:28:40,060 --> 00:28:43,100 S2: lived in the home as your principal residence, uh, for 488 00:28:43,100 --> 00:28:44,980 S2: two out of the last five years, and you've not 489 00:28:44,980 --> 00:28:49,300 S2: used this exclusion on another home in the past two years, then, 490 00:28:49,340 --> 00:28:54,460 S2: you know, having, uh, this capital gains exclusion would allow 100% 491 00:28:54,460 --> 00:28:57,740 S2: of that money to be free from capital gains whatsoever. 492 00:28:58,220 --> 00:29:01,620 S7: Okay. And I guess there's forms for that particular thing. 493 00:29:02,540 --> 00:29:06,020 S2: Uh, yeah. I mean, basically on your tax return, uh, 494 00:29:06,020 --> 00:29:08,980 S2: you will be able to acknowledge that that was the situation. 495 00:29:09,540 --> 00:29:13,140 S7: Okay. Yeah, we've lived in it 25 years. Okay. Two 496 00:29:13,620 --> 00:29:21,850 S7: two short questions. One is tithing. Um, okay. Do we 497 00:29:22,210 --> 00:29:27,410 S7: biblically pies the full amount of the sale or the 498 00:29:27,410 --> 00:29:29,050 S7: profit amount of the sale? 499 00:29:29,570 --> 00:29:32,290 S2: Yeah, yeah, it's a good question. You know, the the 500 00:29:32,330 --> 00:29:34,330 S2: principle of the tithe here, which I think is a 501 00:29:34,330 --> 00:29:36,570 S2: good one because I think, you know, we're no longer 502 00:29:36,570 --> 00:29:40,210 S2: under the law of Moses. Um, but we though in 503 00:29:40,210 --> 00:29:42,530 S2: the New Testament, under the law of Christ, have seen 504 00:29:42,530 --> 00:29:45,250 S2: what Christ has done on our behalf. And I think 505 00:29:45,250 --> 00:29:47,690 S2: it's an opportunity to even go above and beyond in 506 00:29:47,690 --> 00:29:50,450 S2: many cases, uh, New Testament giving the way I read 507 00:29:50,450 --> 00:29:54,530 S2: Scripture should be given freely. It should be given proportionately. 508 00:29:54,530 --> 00:29:56,530 S2: So that's where I think the principle of the tithe 509 00:29:56,530 --> 00:29:59,290 S2: comes in. I think we should give sacrificially. You know, 510 00:29:59,330 --> 00:30:02,690 S2: Jesus celebrated the widow that gave out of her poverty. 511 00:30:02,730 --> 00:30:05,690 S2: I mean, she that was the ultimate sacrificial gift. And 512 00:30:05,690 --> 00:30:08,450 S2: he was looking at the heart. So we should give sacrificially. 513 00:30:08,730 --> 00:30:12,130 S2: I think we should prioritize the local church and give off, 514 00:30:12,370 --> 00:30:14,650 S2: you know, the first fruits. So if you're applying the 515 00:30:14,650 --> 00:30:18,440 S2: principle of the tithe here to the proceeds of the 516 00:30:18,440 --> 00:30:22,680 S2: home sale, it would absolutely be on the gain. Uh, 517 00:30:22,680 --> 00:30:27,240 S2: because that's your increase. Uh, anything else is money you 518 00:30:27,280 --> 00:30:29,280 S2: likely would have already tithed on, because you would have 519 00:30:29,280 --> 00:30:31,960 S2: received it as income or in some other way. You've 520 00:30:31,960 --> 00:30:35,360 S2: invested it in the home. So the increase related to 521 00:30:35,400 --> 00:30:39,760 S2: your home sale is equal to the amount that it, uh, 522 00:30:39,760 --> 00:30:43,080 S2: increased beyond the original purchase price. And you could even 523 00:30:43,080 --> 00:30:46,040 S2: take away from that any major improvements you made. Does 524 00:30:46,040 --> 00:30:46,720 S2: that make sense? 525 00:30:47,080 --> 00:30:49,360 S7: Yes. And my wife and I have been trying to 526 00:30:49,360 --> 00:30:50,280 S7: discuss that. 527 00:30:50,680 --> 00:30:52,760 S2: Great. Stay on the line. We'll talk a bit more. 528 00:30:52,760 --> 00:31:07,240 S2: We'll be right back. Helping you see God is your 529 00:31:07,240 --> 00:31:10,680 S2: ultimate treasure. Money is a tool to accomplish God's purposes. 530 00:31:10,680 --> 00:31:13,120 S2: This is faith and finance. I'm Rob West. Each day 531 00:31:13,120 --> 00:31:16,390 S2: we gather to encourage you in your journey to manage 532 00:31:16,390 --> 00:31:19,510 S2: the resources God has entrusted to you, and we hope 533 00:31:19,510 --> 00:31:22,510 S2: we do that in a way that's encouraging, that is biblical, 534 00:31:22,510 --> 00:31:25,230 S2: that takes you back to God's Word. And it's also 535 00:31:25,270 --> 00:31:28,590 S2: wise and practical. And we do that by answering your questions. 536 00:31:28,590 --> 00:31:30,550 S2: We'll be headed to Tennessee here in just a moment 537 00:31:30,550 --> 00:31:32,709 S2: to talk to David. But first, before the break, we 538 00:31:32,750 --> 00:31:35,790 S2: were talking to Gerald. He and his wife are selling 539 00:31:35,790 --> 00:31:38,670 S2: a home they've lived in for the last 25 years. 540 00:31:38,670 --> 00:31:40,590 S2: And we were talking about the fact that they would 541 00:31:40,590 --> 00:31:43,150 S2: not have capital gains because they have lived in it 542 00:31:43,150 --> 00:31:46,270 S2: for at least two out of the last five years. But, Gerald, 543 00:31:46,270 --> 00:31:48,470 S2: I believe you had a follow up question related to 544 00:31:48,510 --> 00:31:50,270 S2: investing the proceeds. Go ahead. 545 00:31:50,870 --> 00:31:53,430 S7: Yes, but let me just clarify one thing. You did 546 00:31:53,430 --> 00:31:57,990 S7: say a half million write off for a married couple. 547 00:31:58,030 --> 00:32:01,190 S2: That's exactly right. Up to a half a million in gains. 548 00:32:01,190 --> 00:32:04,070 S2: So that's not the selling price. That's the gain. If 549 00:32:04,110 --> 00:32:08,150 S2: you're filing jointly, you get up to $500,000 that you 550 00:32:08,190 --> 00:32:11,270 S2: can exclude from capital gains tax. 551 00:32:11,790 --> 00:32:16,190 S7: Okay. Thank you. Um, the question was the follow up 552 00:32:16,190 --> 00:32:19,790 S7: was concerning wealth front. I think it's called. 553 00:32:19,830 --> 00:32:20,230 S2: Yes. 554 00:32:20,270 --> 00:32:23,310 S7: And is that a good place to invest? And how 555 00:32:23,310 --> 00:32:25,870 S7: much do you think would be a wise investment for 556 00:32:25,910 --> 00:32:26,709 S7: that area? 557 00:32:26,870 --> 00:32:29,510 S2: Yeah. What are you going to have to put to work? 558 00:32:29,550 --> 00:32:31,830 S2: I mean, after you put some in savings or pay 559 00:32:31,830 --> 00:32:34,270 S2: off some debt or take a trip, I mean giving, 560 00:32:34,470 --> 00:32:36,830 S2: what do you have that you would think about investing 561 00:32:37,030 --> 00:32:38,470 S2: when this is all said and done. 562 00:32:38,510 --> 00:32:43,190 S7: I would roughly say 200,000, maybe more, but 200,000. 563 00:32:43,230 --> 00:32:45,270 S2: Okay. And then do you and your wife have other 564 00:32:45,270 --> 00:32:47,030 S2: investable assets currently? 565 00:32:47,510 --> 00:32:51,150 S7: Uh, we have some stocks. Um, not much. We have 566 00:32:51,150 --> 00:32:54,790 S7: some stocks, and we've got a couple, uh, I bonds, I. 567 00:32:55,030 --> 00:32:57,510 S2: Okay, yeah, but you've managed all that yourself. 568 00:32:57,630 --> 00:32:58,270 S7: Yes. 569 00:32:58,310 --> 00:33:01,590 S2: Got it. Okay. Yeah. So Wealthfront is one of these 570 00:33:01,590 --> 00:33:05,070 S2: newer fintech type companies. It's what you would hear referred 571 00:33:05,070 --> 00:33:09,030 S2: to as a robo advisor. And basically what that just 572 00:33:09,030 --> 00:33:11,950 S2: simply means is it's a great choice for what I 573 00:33:11,950 --> 00:33:15,660 S2: would consider to be a hands off investor who's looking 574 00:33:15,660 --> 00:33:18,660 S2: for a low cost approach. Nothing wrong with that. But 575 00:33:18,660 --> 00:33:24,180 S2: where it's automated, it's essentially automated portfolio management. And so 576 00:33:24,460 --> 00:33:28,220 S2: essentially what happens is you answer a series of questions. 577 00:33:28,980 --> 00:33:33,300 S2: You know, they their algorithm then would, you know, take 578 00:33:33,340 --> 00:33:37,260 S2: your age and risk tolerance and the questions you answered 579 00:33:37,260 --> 00:33:40,460 S2: about your goals and objectives. And it would build a 580 00:33:40,460 --> 00:33:45,100 S2: portfolio for you using what are called index funds, which 581 00:33:45,100 --> 00:33:49,820 S2: are just basically broad market indexes. There's index funds for. Well, 582 00:33:49,820 --> 00:33:51,740 S2: the most well known is probably either the Dow Jones 583 00:33:51,740 --> 00:33:54,860 S2: and the S&P, you know, the 30 biggest companies or 584 00:33:54,860 --> 00:33:57,740 S2: the 500 biggest companies in the US. But there's index 585 00:33:57,740 --> 00:34:00,420 S2: funds for the Russell 3000, which is a much bigger 586 00:34:00,420 --> 00:34:03,500 S2: swath of the market. There's index funds for the bond 587 00:34:03,540 --> 00:34:07,380 S2: market and even precious metals. And so what this algorithm 588 00:34:07,380 --> 00:34:11,970 S2: would do is say, okay, for somebody who's, you know, between, uh, 589 00:34:12,170 --> 00:34:15,530 S2: you know, 70 and 80 years old. Here's what percent 590 00:34:15,530 --> 00:34:17,690 S2: we should have in stocks. Here's what percent we should 591 00:34:17,690 --> 00:34:19,770 S2: have in bonds. Here's what percent we should have in 592 00:34:19,810 --> 00:34:23,130 S2: in gold. And then it would essentially allocate it among 593 00:34:23,130 --> 00:34:27,330 S2: these indexes. So you would just capture the broad moves 594 00:34:27,330 --> 00:34:29,690 S2: of the stock and the bond and the precious metals 595 00:34:29,690 --> 00:34:33,770 S2: market in your portfolio. And anytime you added money to it, 596 00:34:33,810 --> 00:34:36,890 S2: it would automatically reinvest it. And if you ever needed money, 597 00:34:36,890 --> 00:34:40,089 S2: it would run a tax analysis to to try to 598 00:34:40,130 --> 00:34:44,050 S2: be tax efficient in what's being sold. And it's a very, 599 00:34:44,090 --> 00:34:48,050 S2: you know, helpful website and smartphone app. So is that 600 00:34:48,050 --> 00:34:51,730 S2: a plausible solution for you on this season of life? Sure. Uh, 601 00:34:51,730 --> 00:34:56,850 S2: typically Wealthfront and Betterment and Charles Schwab Intelligent Portfolios, I'd 602 00:34:56,850 --> 00:34:59,489 S2: put all those in the same category. Typically those are 603 00:34:59,489 --> 00:35:02,930 S2: used for smaller investors. I would say for somebody at, 604 00:35:02,969 --> 00:35:04,650 S2: you know, your stage of life and the amount of 605 00:35:04,650 --> 00:35:07,370 S2: money you're looking to invest, I'd probably want a more 606 00:35:07,370 --> 00:35:11,480 S2: actively managed strategy, which would mean connecting with an advisor 607 00:35:11,480 --> 00:35:14,600 S2: that you'd build a relationship with. And that person would 608 00:35:14,600 --> 00:35:17,680 S2: make the buy and sell decisions, but also could provide 609 00:35:17,680 --> 00:35:20,520 S2: some financial planning and tax planning and make sure you 610 00:35:20,520 --> 00:35:23,359 S2: have all your estate in order. That would be my 611 00:35:23,360 --> 00:35:26,680 S2: preferred way, but that's going to be a little more expensive. 612 00:35:26,840 --> 00:35:29,399 S2: And if you really are looking for an automated kind 613 00:35:29,400 --> 00:35:32,680 S2: of hands off, low cost approach, there's nothing wrong with 614 00:35:32,680 --> 00:35:36,960 S2: Wealthfront and a lot of people, including Warren Buffett and others, 615 00:35:37,000 --> 00:35:40,560 S2: you know, are big fans of index investing. And that's 616 00:35:40,560 --> 00:35:41,320 S2: what this is. 617 00:35:41,600 --> 00:35:44,960 S7: Okay. Thank you. Rob. Um, I can't think of anything 618 00:35:44,960 --> 00:35:48,440 S7: that might follow up to that, but. Okay. Um, oh, 619 00:35:48,480 --> 00:35:51,440 S7: except one thing. What would be like 50,000 would be 620 00:35:51,440 --> 00:35:53,800 S7: the Wealthfront. Typical. We're 80. 621 00:35:54,000 --> 00:35:57,160 S2: Yeah, I think that's probably right. Uh, in terms of, 622 00:35:57,200 --> 00:35:59,479 S2: you know, it would probably be someone who's just starting out. 623 00:35:59,480 --> 00:36:03,080 S2: You can open an account at Wealthfront with $500, you know, 624 00:36:03,120 --> 00:36:05,440 S2: so it's, uh, I mean, it's for people from the 625 00:36:05,440 --> 00:36:09,149 S2: very beginning who are just getting started all the way 626 00:36:09,150 --> 00:36:11,830 S2: up to people that have hundreds of thousands of dollars. 627 00:36:11,830 --> 00:36:15,870 S2: But you don't have any access to human financial advisors. 628 00:36:15,870 --> 00:36:20,509 S2: This is a digital only strategy. Um, and I would 629 00:36:20,510 --> 00:36:22,589 S2: say people who typically have a quarter of a million, 630 00:36:22,630 --> 00:36:25,390 S2: you know, a couple hundred thousand dollars or more typically 631 00:36:25,390 --> 00:36:28,669 S2: use advisors more so than they use these automated kind 632 00:36:28,670 --> 00:36:32,230 S2: of tech driven solutions. But to my other point, though, 633 00:36:32,230 --> 00:36:35,150 S2: and we'll finish here, it is less expensive. So just 634 00:36:35,150 --> 00:36:37,390 S2: so you have a kind of a rough idea, you know, 635 00:36:37,430 --> 00:36:41,430 S2: you might pay, uh, with 200,000, you might pay one 636 00:36:41,430 --> 00:36:46,990 S2: quarter of 1%. Um, you know, at Wealthfront, uh, which, 637 00:36:47,030 --> 00:36:52,670 S2: you know, is $500 versus, you know, you might pay 1%, uh, 638 00:36:52,750 --> 00:36:56,470 S2: with an advisor, which would be a couple of thousand dollars. So, 639 00:36:56,510 --> 00:36:58,390 S2: you know, a little bit more expensive. But I think 640 00:36:58,390 --> 00:37:00,469 S2: with that, you know, you get a lot of other services. 641 00:37:00,469 --> 00:37:02,950 S2: Somebody you can look at, you know, in the face 642 00:37:02,950 --> 00:37:06,109 S2: and meet with and talk about the performance and, you know, 643 00:37:06,150 --> 00:37:08,870 S2: deal with some other financial planning issues, that kind of thing. 644 00:37:08,870 --> 00:37:10,230 S2: So you get what you pay for. 645 00:37:10,510 --> 00:37:12,070 S7: Okay. Appreciate it. 646 00:37:12,110 --> 00:37:12,469 S2: All right. 647 00:37:12,510 --> 00:37:15,910 S7: I don't have anything else, but that's been helpful. Thank you. 648 00:37:15,950 --> 00:37:17,989 S2: Excellent, Gerald, thanks for calling. Hey, stay on the line. 649 00:37:17,989 --> 00:37:19,590 S2: I want to send you a copy of our magazine. 650 00:37:19,590 --> 00:37:22,029 S2: I think you'll enjoy it. And just a way of 651 00:37:22,030 --> 00:37:24,069 S2: saying thanks for being on the program today. Let's go 652 00:37:24,070 --> 00:37:25,630 S2: to Maryland. Marshall. Go ahead. 653 00:37:26,350 --> 00:37:29,510 S8: Okay, I got a quick question. It's on the topic 654 00:37:29,510 --> 00:37:33,510 S8: of timeshares. Yes. And I bet you have a grand. 655 00:37:33,550 --> 00:37:35,310 S8: I bet you have a grin on your face as 656 00:37:35,310 --> 00:37:36,110 S8: I say that. 657 00:37:37,070 --> 00:37:39,350 S2: Yeah, I mean, I could I could take a question 658 00:37:39,350 --> 00:37:41,750 S2: on timeshares on every episode if I wanted to. 659 00:37:41,950 --> 00:37:42,830 S9: I bet you could. 660 00:37:42,830 --> 00:37:44,950 S8: Well, my wife and I own one. We've owned it 661 00:37:44,950 --> 00:37:49,469 S8: for years. And if we. My point is, maintenance fees 662 00:37:50,030 --> 00:37:53,710 S8: and there are other options for vacationing. Um, I just 663 00:37:53,710 --> 00:37:55,469 S8: think it's a bad idea. I think we need to 664 00:37:55,469 --> 00:37:58,230 S8: get rid of it. It's going to cost us $2,000 665 00:37:58,670 --> 00:38:01,430 S8: to get rid of it, and she really likes it, 666 00:38:01,430 --> 00:38:03,190 S8: but we can do other things. So. 667 00:38:03,390 --> 00:38:04,470 S9: Yeah. Um, yeah. 668 00:38:04,790 --> 00:38:07,060 S8: I don't know what else to do. I don't want 669 00:38:07,060 --> 00:38:09,060 S8: to hurt her feelings. I love her, but I don't 670 00:38:09,060 --> 00:38:10,380 S8: think it's a good move. 671 00:38:11,180 --> 00:38:13,420 S2: Yeah. You know, I mean, I would tend to align 672 00:38:13,420 --> 00:38:17,260 S2: with you now. I'm sure in an audience this size. Marshall. 673 00:38:17,300 --> 00:38:19,860 S2: There's people out there listening right now that have a timeshare, 674 00:38:19,860 --> 00:38:23,300 S2: and they absolutely love it. And they have a guaranteed 675 00:38:23,300 --> 00:38:26,540 S2: vacation spot every year. And they can, you know, trade 676 00:38:26,540 --> 00:38:31,180 S2: locations and they like the resort style amenities. Um, you know, 677 00:38:31,219 --> 00:38:33,820 S2: and they're not buying a second home or anything like that. 678 00:38:33,820 --> 00:38:36,899 S2: And that can sound appealing. But I think the reality is, 679 00:38:36,900 --> 00:38:42,140 S2: number one, typically timeshares are sold, not bought, meaning people 680 00:38:42,140 --> 00:38:45,500 S2: don't go out looking for timeshares. They typically either got 681 00:38:45,500 --> 00:38:47,739 S2: a free weekend or they happen to be somewhere and 682 00:38:47,739 --> 00:38:49,939 S2: they're like, hey, you know, if you take a couple 683 00:38:49,980 --> 00:38:51,739 S2: of hours, we'll give you free tickets to the, you know, 684 00:38:51,780 --> 00:38:54,739 S2: amusement park or whatever. And so typically they're sold to 685 00:38:54,820 --> 00:38:57,900 S2: people and often with a kind of a high pressure 686 00:38:57,940 --> 00:39:01,020 S2: sales strategy, which is the first red flag for me. 687 00:39:01,180 --> 00:39:03,820 S2: The second concern I would have is just the number 688 00:39:03,820 --> 00:39:06,529 S2: of people. I don't get many people calling now. Maybe 689 00:39:06,570 --> 00:39:08,049 S2: we'll get a flood of them now, but I don't 690 00:39:08,050 --> 00:39:09,730 S2: get many people calling saying, hey, can I tell you 691 00:39:09,730 --> 00:39:12,090 S2: how much I love my timeshare? But I get a 692 00:39:12,090 --> 00:39:15,770 S2: ton of calls, Marshall, from people saying, how in the 693 00:39:15,770 --> 00:39:19,850 S2: world do I unload this timeshare? And here's why. Number one, 694 00:39:19,850 --> 00:39:23,210 S2: and you pointed out there are high ongoing maintenance costs. 695 00:39:23,210 --> 00:39:26,649 S2: So you'll pay annual maintenance fees, which often rise even 696 00:39:26,650 --> 00:39:30,850 S2: if you don't use it. Number two are vacation preferences 697 00:39:30,850 --> 00:39:34,730 S2: tend to change over time. You know, we we vacation 698 00:39:34,730 --> 00:39:37,930 S2: differently when we have kids versus, you know, when we're 699 00:39:37,969 --> 00:39:41,490 S2: on our own as empty nesters or when we have grandkids. And, 700 00:39:41,530 --> 00:39:44,050 S2: you know, we have different needs and so forth where 701 00:39:44,050 --> 00:39:47,969 S2: we want a vacation changes. Also, the heyday of timeshares 702 00:39:47,969 --> 00:39:50,370 S2: was back in the age where, you know, it was 703 00:39:50,370 --> 00:39:55,330 S2: either a timeshare or, you know, a hotel. And now 704 00:39:55,330 --> 00:39:58,730 S2: we've got Vrbo and Airbnb and I mean, you can 705 00:39:58,770 --> 00:40:02,570 S2: you have tons of flexibility as to how and where 706 00:40:02,850 --> 00:40:05,520 S2: you vacation and the kind of place you want, and 707 00:40:05,520 --> 00:40:07,799 S2: it can feel like your own. You're not having to 708 00:40:07,800 --> 00:40:11,160 S2: deal with elevators and lobbies and, you know, just being 709 00:40:11,160 --> 00:40:13,279 S2: stuck in a room looking at four walls. You can 710 00:40:13,280 --> 00:40:16,360 S2: actually be in a a house on a river or 711 00:40:16,400 --> 00:40:19,600 S2: a lake or a beach or in the mountains. And, 712 00:40:19,640 --> 00:40:22,879 S2: you know, you've just got so much flexibility that I 713 00:40:22,880 --> 00:40:26,080 S2: think not getting locked into something that you're constantly going 714 00:40:26,120 --> 00:40:30,040 S2: to have to, to service and maintain. Um, you know, 715 00:40:30,080 --> 00:40:33,520 S2: if your preferences change down the road, I think is, uh, 716 00:40:33,520 --> 00:40:36,200 S2: is something a lot of people like. Does that make sense, though? 717 00:40:36,640 --> 00:40:41,000 S8: It really does. So they said to $2,400 and they'll 718 00:40:41,000 --> 00:40:42,640 S8: they'll take it back. We have to pay them to 719 00:40:42,680 --> 00:40:43,640 S8: take it back. So. 720 00:40:43,960 --> 00:40:47,319 S2: Yeah. Yeah. Exactly. So I just think there's so many 721 00:40:47,320 --> 00:40:50,719 S2: more options when you don't get locked into something. And, uh, 722 00:40:50,719 --> 00:40:52,279 S2: I think you guys will be glad you did it. 723 00:40:52,280 --> 00:40:54,720 S2: I hate that I'm, you know, just kind of piling 724 00:40:54,719 --> 00:40:56,920 S2: on because, you know, if your wife is listening or 725 00:40:56,920 --> 00:40:58,439 S2: you share this with her, she might be like, yeah, 726 00:40:58,440 --> 00:41:00,799 S2: but I really want it, and I get that. But 727 00:41:00,800 --> 00:41:06,200 S2: I just think having flexibility, having options, not obligating yourself 728 00:41:06,200 --> 00:41:09,440 S2: to an ongoing expense in the future. I think you 729 00:41:09,440 --> 00:41:12,359 S2: guys will just be glad perhaps two, three, four, five 730 00:41:12,360 --> 00:41:15,640 S2: years from now, and you basically have control over how 731 00:41:15,680 --> 00:41:18,319 S2: and when and where you want to vacation. That's just 732 00:41:18,320 --> 00:41:20,799 S2: my opinion. You guys think about it, pray about it, 733 00:41:20,800 --> 00:41:24,160 S2: and I'm confident you'll make a great decision. Marshall, we 734 00:41:24,160 --> 00:41:27,160 S2: appreciate your call today. Thanks for being on the program, sir. Hey, 735 00:41:27,160 --> 00:41:29,800 S2: before we round out the broadcast today, a quick email. 736 00:41:29,800 --> 00:41:34,920 S2: These come in to us at Moody radio.org/robin writes I'm 58. 737 00:41:34,960 --> 00:41:38,319 S2: I earn $98,000 a year. I'm currently renting, but it's 738 00:41:38,320 --> 00:41:40,920 S2: very expensive. I want to buy a home, but I'm 739 00:41:40,920 --> 00:41:43,000 S2: wondering if I'm too old at this point. What do 740 00:41:43,000 --> 00:41:46,360 S2: you think? I want to make a biblically sound decision, Robin. 741 00:41:46,360 --> 00:41:48,920 S2: First of all, you are not too old to buy 742 00:41:48,920 --> 00:41:52,319 S2: a home. Uh, however, I would count the cost. And 743 00:41:52,320 --> 00:41:54,960 S2: so we say, when purchasing a home, you want to 744 00:41:54,960 --> 00:41:57,600 S2: make sure you have 20% down, and you want to 745 00:41:57,600 --> 00:42:00,990 S2: make sure that your principal interest, taxes and insurance Payment 746 00:42:00,989 --> 00:42:04,510 S2: is no more than 25% of your take home pay. Now, 747 00:42:04,510 --> 00:42:06,069 S2: if you have the money to put in for the 748 00:42:06,110 --> 00:42:10,790 S2: down payment and you're inside that range of 25% or 749 00:42:10,790 --> 00:42:13,430 S2: perhaps equal to what you're already spending for rent, the 750 00:42:13,430 --> 00:42:15,669 S2: only thing you want to factor in is are there 751 00:42:15,670 --> 00:42:19,470 S2: additional costs from being a homeowner? Now I've got maintenance. 752 00:42:19,510 --> 00:42:21,710 S2: Now I've got to think, of course, about property taxes 753 00:42:21,710 --> 00:42:25,390 S2: and homeowner's insurance. But there are other costs there, so 754 00:42:25,430 --> 00:42:27,870 S2: you just need to factor that in before you make 755 00:42:27,870 --> 00:42:29,469 S2: that decision. But at the end of the day, if 756 00:42:29,469 --> 00:42:32,149 S2: all that works, then I'm on board. I think that 757 00:42:32,150 --> 00:42:34,029 S2: would be a great idea. Hey, let me say a 758 00:42:34,030 --> 00:42:36,990 S2: big thanks to my team today, Amy, and to here. 759 00:42:37,030 --> 00:42:39,830 S2: And Dan and Jim couldn't do it without him. Thank 760 00:42:39,830 --> 00:42:42,230 S2: you for being along with us. Faith and Finance Live 761 00:42:42,230 --> 00:42:45,830 S2: is a partnership between Moody Radio and Faith five. By 762 00:42:45,830 --> 00:42:46,989 S2: the way, if you want to check us out on 763 00:42:46,989 --> 00:42:49,550 S2: the web, you can do that at Faith five. Com. 764 00:42:49,590 --> 00:42:52,390 S2: Download the app while you're there. It's great to use 765 00:42:52,390 --> 00:42:54,390 S2: for your budget. In the meantime, may the Lord bless 766 00:42:54,390 --> 00:42:56,229 S2: you and we'll see you next time. Bye bye.