1 00:00:08,400 --> 00:00:13,280 S1: What if your generosity could be multiplied without giving another dollar? Hi, 2 00:00:13,280 --> 00:00:18,080 S1: I'm Rob West. Corporate matching programs distribute billions each year, 3 00:00:18,079 --> 00:00:21,759 S1: yet many faith based ministries don't qualify for those funds. 4 00:00:21,880 --> 00:00:24,480 S1: What does that mean for believers who want their giving 5 00:00:24,520 --> 00:00:27,600 S1: to have a greater impact? Will Laughlin joins us to 6 00:00:27,640 --> 00:00:31,760 S1: explain how these programs work and why fairness matters. And 7 00:00:31,760 --> 00:00:35,680 S1: then it's on to your calls at 800 525 7000. 8 00:00:35,720 --> 00:00:40,600 S1: That's 800 525 7000. This is faith and finance. Live. 9 00:00:40,640 --> 00:00:46,640 S1: Biblical wisdom for your financial decisions. Well, we always gain 10 00:00:46,640 --> 00:00:49,839 S1: valuable insight. When Will Laughlin joins us? He's the managing 11 00:00:49,840 --> 00:00:53,760 S1: director of faith based investing at the Guidestone funds. One 12 00:00:53,760 --> 00:00:57,800 S1: of this program's longtime underwriters will. Great to have you back. 13 00:00:58,080 --> 00:00:59,920 S2: Thanks, Rob. It's good to be with you again. 14 00:00:59,920 --> 00:01:05,690 S1: Well, many companies offer charitable gift matching programs. How widespread 15 00:01:05,690 --> 00:01:08,090 S1: are those across corporate America today? 16 00:01:08,530 --> 00:01:11,450 S2: Well, Rob, uh, the data that we see shows that 17 00:01:11,450 --> 00:01:16,330 S2: it's pretty common. Uh, about 65% of fortune 500 companies 18 00:01:16,330 --> 00:01:22,130 S2: offer matching programs. Uh, that total about $2.86 billion a 19 00:01:22,130 --> 00:01:25,530 S2: year in giving. Um, but at the same time, you know, 20 00:01:25,569 --> 00:01:29,130 S2: there's about 4 to $7 billion annually that gets left 21 00:01:29,130 --> 00:01:32,290 S2: on the table because employees either don't know those benefits 22 00:01:32,290 --> 00:01:36,130 S2: exist or they don't complete the matching forms. 23 00:01:36,330 --> 00:01:38,370 S1: Oh, wow. Well, I'm glad we could shine a light 24 00:01:38,370 --> 00:01:42,810 S1: on it today, but unfortunately not every non-profit is eligible. 25 00:01:42,810 --> 00:01:46,850 S1: So what kinds of restrictions do some programs place on 26 00:01:46,850 --> 00:01:49,490 S1: specifically religious organizations? 27 00:01:49,690 --> 00:01:52,570 S2: Yeah, absolutely. Well, we see that a lot of these programs, 28 00:01:52,570 --> 00:01:55,010 S2: I mean, they're very well intentioned and a lot of 29 00:01:55,010 --> 00:01:58,610 S2: them have specific rules, uh, set up to guide how 30 00:01:58,610 --> 00:02:02,340 S2: those matches happen, and what we've started to see out 31 00:02:02,340 --> 00:02:06,500 S2: in the corporate world were some very stale policies that 32 00:02:06,500 --> 00:02:09,780 S2: did have some prohibitions or whoops, uh, that people would 33 00:02:09,780 --> 00:02:12,180 S2: have to jump through that disqualified a lot of religious 34 00:02:12,180 --> 00:02:16,060 S2: organizations from those matches. Um, you know, specifically, we found 35 00:02:16,060 --> 00:02:21,060 S2: an aerospace and defense company that prohibited gifts for religious 36 00:02:21,060 --> 00:02:26,100 S2: purposes or supporting religious activities. Um, so that excluded that, um, 37 00:02:26,100 --> 00:02:30,940 S2: UnitedHealthCare is one that has a list of religious organizations 38 00:02:30,940 --> 00:02:35,380 S2: that don't qualify. So there are a variety of things 39 00:02:35,380 --> 00:02:40,060 S2: that stand in the way of some Christian ministries being able, um, 40 00:02:40,419 --> 00:02:42,859 S2: to be recipients of matched gifts. 41 00:02:42,900 --> 00:02:46,740 S1: Yeah. And that, of course, then limits the ability to 42 00:02:46,780 --> 00:02:51,980 S1: get those funds to openly Christian organizations doing incredible work 43 00:02:52,180 --> 00:02:55,220 S1: in communities around the country and around the globe in 44 00:02:55,220 --> 00:02:57,620 S1: the name of Jesus. Now, you and the team at 45 00:02:57,620 --> 00:03:02,520 S1: the Guidestone funds have been actively engaging these kinds of policies. 46 00:03:02,520 --> 00:03:05,960 S1: So talk to us about what that work involves right now. 47 00:03:06,000 --> 00:03:08,200 S2: Yeah. Well, a lot of these companies, I mean, there 48 00:03:08,200 --> 00:03:10,360 S2: are companies we invest in within our funds, and there 49 00:03:10,360 --> 00:03:11,880 S2: are companies that we look at and say, these are 50 00:03:11,880 --> 00:03:15,240 S2: overall good businesses. They're run by people. People can, um, 51 00:03:15,320 --> 00:03:17,560 S2: make mistakes from time to time. So for us, it's 52 00:03:17,560 --> 00:03:20,760 S2: really just coming with a good Christian heart. Um, and 53 00:03:20,760 --> 00:03:23,200 S2: speaking to the companies and their leadership and trying to 54 00:03:23,200 --> 00:03:26,880 S2: understand what they're looking to accomplish with these gift programs, uh, 55 00:03:26,880 --> 00:03:29,079 S2: how it serves as a benefit to their employees and 56 00:03:29,080 --> 00:03:32,119 S2: help them get an understanding of some of the unintended 57 00:03:32,120 --> 00:03:36,360 S2: consequences of the rules around their programs. The example I 58 00:03:36,360 --> 00:03:39,200 S2: gave of the aerospace company that was actually Boeing, um, 59 00:03:39,200 --> 00:03:41,960 S2: and Boeing was someone we went into, we spoke our 60 00:03:41,960 --> 00:03:44,280 S2: heart on the issue and they were very understanding and 61 00:03:44,280 --> 00:03:47,880 S2: they were very collaborative. And, um, this year adjusted their 62 00:03:47,880 --> 00:03:53,200 S2: gift matching program to include religious organizations. And, um, that's 63 00:03:53,200 --> 00:03:55,880 S2: a company that matches a few hundred million dollars a 64 00:03:55,880 --> 00:03:59,010 S2: year in gifts. So wow, we're really trying to go 65 00:03:59,010 --> 00:04:03,610 S2: in and unlock a meaningful amount of capital for the 66 00:04:03,610 --> 00:04:07,890 S2: Christian community so that we can see expanded Kingdom reach 67 00:04:07,890 --> 00:04:10,450 S2: through these donation and gift match programs. 68 00:04:10,690 --> 00:04:14,930 S1: Boy, what a powerful illustration of how effective corporate engagement 69 00:04:14,930 --> 00:04:18,970 S1: can be and will if this continues. I mean, this 70 00:04:18,970 --> 00:04:22,409 S1: could have a major impact on churches and ministries, right? 71 00:04:22,930 --> 00:04:25,770 S2: Yeah. That's the, the end goal for this. And that's 72 00:04:25,810 --> 00:04:27,610 S2: kind of the heart of who we are and how 73 00:04:27,610 --> 00:04:31,930 S2: we've historically served ministry organizations. We want to see them supported. 74 00:04:31,930 --> 00:04:34,770 S2: We want to see them financially well and resilient. And 75 00:04:34,770 --> 00:04:39,930 S2: so it's an opportunity for the rank and file Christian 76 00:04:39,930 --> 00:04:44,409 S2: employee whose vocation is not specifically ministry, whose vocation might be, uh, 77 00:04:44,410 --> 00:04:48,050 S2: engineering or finance to put money back into ministries they 78 00:04:48,050 --> 00:04:48,770 S2: care about. 79 00:04:49,010 --> 00:04:51,210 S1: Wow. Well, I'm so glad you were here today. Will 80 00:04:51,250 --> 00:04:52,970 S1: to shine a light on this. And thanks for the 81 00:04:52,970 --> 00:04:56,650 S1: great work you're doing through the Guidestone funds to engage 82 00:04:56,650 --> 00:05:00,060 S1: with these companies so we can unlock this incredible wave 83 00:05:00,060 --> 00:05:03,179 S1: of generosity to Christian ministries. Thanks for your time, my friend. 84 00:05:03,580 --> 00:05:05,020 S2: Thanks, Rob, I appreciate it. 85 00:05:05,260 --> 00:05:08,140 S1: Our guest has been Will Laughlin with Guidestone Funds, an 86 00:05:08,140 --> 00:05:11,300 S1: underwriter of this program to learn more about Guidestones approach 87 00:05:11,300 --> 00:05:16,260 S1: to investing guided by biblical values, go to guidestone funds.com. 88 00:05:17,339 --> 00:05:22,500 S1: That's guidestone funds.com. We'll be right back. 89 00:05:33,220 --> 00:05:36,100 S3: The opinions offered during this program represent the personal or 90 00:05:36,100 --> 00:05:40,180 S3: professional opinions of the participants given for informational purposes only. 91 00:05:40,339 --> 00:05:43,580 S3: Any information provided is not intended to replace advice from 92 00:05:43,580 --> 00:05:47,420 S3: a financial, medical, legal, or other professional who understands your 93 00:05:47,420 --> 00:05:48,900 S3: specific situation. 94 00:05:57,150 --> 00:05:58,950 S1: Great to have you with us today on Faith and 95 00:05:58,950 --> 00:06:01,989 S1: Finance Live. I'm Rob West. Well, uh, just a moment. 96 00:06:01,990 --> 00:06:04,750 S1: We'll begin taking your calls and questions. So now is 97 00:06:04,750 --> 00:06:09,830 S1: a great time to call 800 525 7000 again. That 98 00:06:09,830 --> 00:06:14,869 S1: number is 800 525 7000. We'll dive into whatever's going 99 00:06:14,870 --> 00:06:18,190 S1: on in your financial life today, help you think about it, 100 00:06:18,190 --> 00:06:22,190 S1: process it, and make decisions in light of biblical wisdom. 101 00:06:22,230 --> 00:06:24,470 S1: That's not wisdom that comes from me. That's wisdom that 102 00:06:24,470 --> 00:06:27,310 S1: comes from God's Word. And we look to the counsel 103 00:06:27,310 --> 00:06:30,950 S1: of Scripture as our source, and pull out those principles 104 00:06:30,950 --> 00:06:34,310 S1: and help you apply those to the very specific questions 105 00:06:34,310 --> 00:06:37,470 S1: you're facing in your financial life today. So call right now, 106 00:06:37,470 --> 00:06:40,070 S1: we've got lines open. We'll be taking those calls beginning 107 00:06:40,070 --> 00:06:45,470 S1: in just a moment. Again, that number 800 525 7000. 108 00:06:45,550 --> 00:06:48,070 S1: Also coming up in our final segment today, Bob Dole 109 00:06:48,070 --> 00:06:51,750 S1: stops by. Bob is our go to guy on the markets. 110 00:06:52,110 --> 00:06:58,560 S1: The S&P 500 closing slightly higher today as oil prices 111 00:06:59,400 --> 00:07:06,200 S1: rebound from the Iran conflict. And we're we're watching that closely. 112 00:07:06,400 --> 00:07:10,080 S1: You know, this yo yo effect on oil prices up 113 00:07:10,080 --> 00:07:13,840 S1: above $100 a barrel, then below, and then back up 114 00:07:14,040 --> 00:07:17,160 S1: as this drags on. Obviously the risk to a global 115 00:07:17,160 --> 00:07:20,840 S1: recession goes up. And that's what the market is weighing. 116 00:07:20,880 --> 00:07:24,280 S1: After selling off the last week, we've seen at least 117 00:07:24,280 --> 00:07:27,480 S1: positive territory. The first two days of the trading week. 118 00:07:27,480 --> 00:07:29,560 S1: But where is it all headed? A lot of that's 119 00:07:29,560 --> 00:07:32,480 S1: going to do with how long this war drags on, 120 00:07:32,480 --> 00:07:36,360 S1: and ultimately how much disruption is in the energy markets. 121 00:07:36,360 --> 00:07:38,720 S1: Bob Dole will weigh in on all of that and 122 00:07:38,720 --> 00:07:41,520 S1: just the overall health of the economy. And our final 123 00:07:41,520 --> 00:07:44,800 S1: segment today, we will be taking your calls again in 124 00:07:44,800 --> 00:07:49,040 S1: just a moment. 800 525 7000. In the news today, 125 00:07:49,040 --> 00:07:52,640 S1: as Saint Patrick's Day is celebrated around the world today, 126 00:07:53,000 --> 00:07:57,260 S1: it's easy to focus on the festivities, parades and green attire. 127 00:07:57,300 --> 00:07:59,540 S1: I know I saw at least one of my girls 128 00:07:59,540 --> 00:08:02,420 S1: leave the house this morning with something green on. There's 129 00:08:02,420 --> 00:08:06,620 S1: also lots of cultural traditions, but Patrick's true legacy points 130 00:08:06,620 --> 00:08:09,340 S1: us to something far deeper, and that is a life 131 00:08:09,340 --> 00:08:13,900 S1: marked by extraordinary generosity. It captured and enslaved in Ireland 132 00:08:13,900 --> 00:08:18,020 S1: as a teenager, Patrick eventually escaped and returned home. Yet 133 00:08:18,060 --> 00:08:21,060 S1: years later, he felt called by God to go back. 134 00:08:21,260 --> 00:08:23,700 S1: It wasn't in anger. It was in love. He gave 135 00:08:23,700 --> 00:08:26,940 S1: his life to serving the very people who once held 136 00:08:26,940 --> 00:08:31,500 S1: him captive, sharing the hope of Christ with humility and perseverance. 137 00:08:31,700 --> 00:08:35,980 S1: It's a powerful reminder that generosity isn't about how much 138 00:08:35,980 --> 00:08:39,340 S1: we have. It's about how willing we are to give 139 00:08:39,580 --> 00:08:43,060 S1: what God has entrusted to us. Patrick, of course, offered 140 00:08:43,059 --> 00:08:46,100 S1: his time and his comfort and his very life and 141 00:08:46,100 --> 00:08:49,340 S1: faithful obedience. So I would just encourage us, and I'm 142 00:08:49,340 --> 00:08:52,739 S1: talking to myself as well. As we reflect on his story, 143 00:08:52,900 --> 00:08:56,510 S1: I think we're invited to consider our own stewardship. Are 144 00:08:56,510 --> 00:09:00,590 S1: we living open handedly? Are we using our resources, really 145 00:09:00,630 --> 00:09:04,430 S1: God's resources and the influence he's entrusted to us and 146 00:09:04,429 --> 00:09:08,350 S1: our time for his purposes? Like Patrick, we're called to 147 00:09:08,390 --> 00:09:12,870 S1: be faithful stewards, trusting that in giving, we reflect the 148 00:09:12,870 --> 00:09:17,670 S1: heart of Christ and invest in what truly lasts. You know, 149 00:09:17,710 --> 00:09:20,350 S1: when we think about giving, it should be a natural 150 00:09:20,390 --> 00:09:24,470 S1: byproduct of the grace that's been extended to us. We 151 00:09:24,470 --> 00:09:29,110 S1: should give because we have received so much. We don't 152 00:09:29,110 --> 00:09:33,030 S1: give to earn God's favor. We give because we know 153 00:09:33,429 --> 00:09:37,990 S1: God has already given so much to us. We're living 154 00:09:37,990 --> 00:09:41,670 S1: on a gift of grace and that changes everything. And 155 00:09:41,670 --> 00:09:45,470 S1: so as we think about our stewardship, you know, generosity 156 00:09:45,470 --> 00:09:48,189 S1: is a response to the grace and love we've been given. 157 00:09:48,590 --> 00:09:51,390 S1: We ought to think about it that way, that, you know, 158 00:09:51,429 --> 00:09:56,720 S1: as we make gifts. It moves from pressure, meaning something 159 00:09:56,720 --> 00:10:00,280 S1: we have to do to. Privilege, something I get to do. 160 00:10:00,559 --> 00:10:04,120 S1: And it's certainly not limited to. The financially wealthy. Every believer, 161 00:10:04,120 --> 00:10:08,640 S1: regardless of income, has received the riches of Christ. And 162 00:10:08,640 --> 00:10:11,439 S1: with that, we have something to offer. Now when it 163 00:10:11,440 --> 00:10:15,000 S1: comes to financial giving, we ought to think about those 164 00:10:15,000 --> 00:10:17,480 S1: barriers that are getting in the way of us being 165 00:10:17,480 --> 00:10:20,959 S1: able to be as generous as we might desire to be. 166 00:10:21,160 --> 00:10:25,120 S1: I think first, it's spiritual. It's not having a right 167 00:10:25,120 --> 00:10:30,840 S1: perspective of generosity. It's thinking about generosity in terms of 168 00:10:30,840 --> 00:10:33,920 S1: I have to not I get to. That's not the 169 00:10:33,920 --> 00:10:37,320 S1: way we see God's Word. Talk about generosity. If if 170 00:10:37,320 --> 00:10:39,600 S1: we see it as an overflow of the grace that's 171 00:10:39,600 --> 00:10:43,319 S1: been extended, extended to us, it changes everything. I think 172 00:10:43,320 --> 00:10:47,040 S1: second is financial. You know, we're not ordering our finances 173 00:10:47,040 --> 00:10:49,719 S1: in a way that allows us to be generous. That 174 00:10:49,720 --> 00:10:51,439 S1: means we've got to live within our means. We've got 175 00:10:51,480 --> 00:10:54,490 S1: to avoid debt because that mortgage is the future. We've 176 00:10:54,490 --> 00:10:57,170 S1: got to have margin. We've got to have long term goals. 177 00:10:57,450 --> 00:10:59,929 S1: And then we can give generously. We've got to have 178 00:10:59,929 --> 00:11:02,770 S1: a plan. We need to be intentional. Yes, there's a 179 00:11:02,770 --> 00:11:06,850 S1: place for spontaneous giving, but intentional giving has got to 180 00:11:06,850 --> 00:11:09,689 S1: be a part of our plan. What have I done today? 181 00:11:09,850 --> 00:11:11,290 S1: What did I do last year and where am I 182 00:11:11,330 --> 00:11:14,010 S1: going in the future? Really thinking through it. And keep 183 00:11:14,010 --> 00:11:17,650 S1: in mind, your greatest opportunity for giving sits over there 184 00:11:17,650 --> 00:11:22,689 S1: on your balance sheet. It's not even in your monthly income. Uh, 90% 185 00:11:22,690 --> 00:11:24,650 S1: of our wealth is held in the form of assets, 186 00:11:24,650 --> 00:11:27,410 S1: and yet only 10% of giving is done from our 187 00:11:27,410 --> 00:11:31,530 S1: balance sheet, from our assets. We're missing our biggest opportunity 188 00:11:31,530 --> 00:11:34,730 S1: when it comes to giving. I think it's also vision, 189 00:11:34,770 --> 00:11:36,770 S1: you know, do you have a vision for your giving 190 00:11:36,770 --> 00:11:39,010 S1: that connects back to those things that are on the 191 00:11:39,010 --> 00:11:42,610 S1: heart of God in Scripture? And then finally community. And 192 00:11:42,610 --> 00:11:46,090 S1: I love that this next generation is really interested in 193 00:11:46,090 --> 00:11:50,809 S1: giving in collaboration with others. The idea of giving circles 194 00:11:50,809 --> 00:11:53,870 S1: is really taking off, where folks who have a shared 195 00:11:53,870 --> 00:11:57,189 S1: interest or passion around meeting a need or solving a problem, 196 00:11:57,190 --> 00:12:00,390 S1: or coming together to do their giving with one another, 197 00:12:00,390 --> 00:12:03,750 S1: that's a great and beautiful picture of the body of Christ. 198 00:12:03,750 --> 00:12:06,270 S1: But if one of those barriers is standing in the way, 199 00:12:06,270 --> 00:12:08,750 S1: I would encourage you to think and pray about what 200 00:12:08,750 --> 00:12:11,350 S1: you might do to get beyond that, so you can 201 00:12:11,350 --> 00:12:14,470 S1: be the generous giver that God would have us to be, 202 00:12:14,470 --> 00:12:17,150 S1: not because he needs anything. It all belongs to him, 203 00:12:17,150 --> 00:12:21,069 S1: but because he wants to invite us into his redemptive purposes. 204 00:12:21,429 --> 00:12:24,430 S1: All right. Let's move to your phone calls today. We'll 205 00:12:24,429 --> 00:12:27,470 S1: head to begin to Indianapolis. Rusty. Go ahead. 206 00:12:28,190 --> 00:12:30,829 S4: Yes, sir. I was curious to know your opinion. Would 207 00:12:30,830 --> 00:12:34,990 S4: it be mathematically advantageous for one to take Social Security 208 00:12:35,030 --> 00:12:40,270 S4: at 62, invest it, and draw from their IRA during 209 00:12:40,270 --> 00:12:43,189 S4: that period of time from 62 to 60 5 or 7, 210 00:12:43,190 --> 00:12:46,550 S4: until Social Security comes to full maturity? Or would it 211 00:12:46,550 --> 00:12:50,910 S4: be better to wait till 65 or 67 based on 212 00:12:51,240 --> 00:12:53,640 S4: what your return on your investment from your IRA is? 213 00:12:53,679 --> 00:12:58,400 S1: Yeah. You know, in many cases, waiting to take Social 214 00:12:58,400 --> 00:13:03,679 S1: Security wins because benefits grow at about 8% per year, 215 00:13:03,920 --> 00:13:08,720 S1: and that's guaranteed. It's a risk free increase. So it's 216 00:13:08,720 --> 00:13:12,439 S1: hard to beat that consistently with investing. There is nothing 217 00:13:12,600 --> 00:13:16,880 S1: that's risk free that offers that kind of guaranteed return. 218 00:13:17,160 --> 00:13:20,880 S1: Now the idea of take it at 62 and invest 219 00:13:20,880 --> 00:13:24,120 S1: it is you take it early, you're pulling from the 220 00:13:24,120 --> 00:13:28,280 S1: IRA instead. And the way for that to win, you 221 00:13:28,280 --> 00:13:32,880 S1: would need to have consistent returns higher than about 7% 222 00:13:32,880 --> 00:13:35,720 S1: after tax. And you'd have to do that over many 223 00:13:35,720 --> 00:13:42,000 S1: years without major losses early on. That's possible, but not guaranteed. 224 00:13:42,000 --> 00:13:44,720 S1: But often what drives this decision? At the end of 225 00:13:44,720 --> 00:13:48,440 S1: the day, rusty is not just math. It's life expectancy, 226 00:13:48,440 --> 00:13:51,330 S1: which is the biggest factor. We don't know. Only the 227 00:13:51,330 --> 00:13:54,210 S1: Lord knows. But are you healthy? Do you have longevity 228 00:13:54,210 --> 00:13:57,410 S1: in your family? What is your need for income now? 229 00:13:58,050 --> 00:14:02,569 S1: And then looking at the IRA strategy, pulling down IRA 230 00:14:02,570 --> 00:14:08,130 S1: money review reduces future RMDs and creates tax planning opportunities. 231 00:14:08,130 --> 00:14:10,290 S1: But I think at the end of the day, if 232 00:14:10,330 --> 00:14:13,809 S1: you've got longevity, you're healthy, you don't need the income. Now, 233 00:14:14,090 --> 00:14:16,930 S1: if you, um, you know, have the ability to wait, 234 00:14:16,929 --> 00:14:19,290 S1: that's usually going to win out. I want to get 235 00:14:19,290 --> 00:14:20,970 S1: your thoughts on that. We'll do that after the break. 236 00:14:20,970 --> 00:14:29,930 S1: We'll be right back. Thanks for joining us today on 237 00:14:29,930 --> 00:14:32,010 S1: Faith and Finance Live. I'm Rob West. We do have 238 00:14:32,010 --> 00:14:35,010 S1: some lines open today. We're taking your calls and questions. 239 00:14:35,010 --> 00:14:37,450 S1: You've got something happening in your financial life. We'd love 240 00:14:37,450 --> 00:14:44,410 S1: to chat about it. 800 525 7000. That's 800 525 7000. Uh, 241 00:14:44,410 --> 00:14:47,210 S1: let's go back to Indianapolis. Rusty, I gave you my 242 00:14:47,210 --> 00:14:51,300 S1: thoughts on the take Social Security early and invest it 243 00:14:51,300 --> 00:14:54,820 S1: and then live off of your IRA versus waiting. But 244 00:14:54,820 --> 00:14:56,540 S1: give me your thoughts or questions. 245 00:14:58,020 --> 00:15:00,900 S4: Yeah, I certainly appreciate your input there. And just kind 246 00:15:00,900 --> 00:15:02,660 S4: of where my head was, is, is that if you 247 00:15:02,660 --> 00:15:06,500 S4: had a diversified portfolio, um, in the million dollar range 248 00:15:06,500 --> 00:15:08,660 S4: and you were able to pull money out and you 249 00:15:08,660 --> 00:15:13,060 S4: needed minimal money to live, um, and you're talking $100,000 250 00:15:13,060 --> 00:15:17,180 S4: from 62 to 65 and not having that magic of 251 00:15:17,220 --> 00:15:20,780 S4: compound interest from the rest of the portfolio, which was 252 00:15:20,780 --> 00:15:24,500 S4: the better investment. Um, and it sounds like that the, uh, 253 00:15:24,540 --> 00:15:27,580 S4: waiting for the guaranteed money, in your opinion, is the 254 00:15:27,580 --> 00:15:29,740 S4: better way to go than to have the risk. 255 00:15:29,780 --> 00:15:33,940 S1: Yeah. Yeah, exactly. Because if you've got the million dollars 256 00:15:33,940 --> 00:15:38,500 S1: and you don't need the income, Social Security becomes longevity 257 00:15:38,500 --> 00:15:42,700 S1: insurance and a guaranteed return. Um, so, you know, the 258 00:15:42,700 --> 00:15:45,740 S1: reasons why you might still want to wait, which is again, 259 00:15:45,740 --> 00:15:49,550 S1: often the better move is you're essentially buying a bigger 260 00:15:49,550 --> 00:15:54,070 S1: guaranteed check. So delaying it, you know, gets you that 8% 261 00:15:54,070 --> 00:15:57,910 S1: increase risk free. It's inflation adjusted, meaning those cost of 262 00:15:57,910 --> 00:16:00,510 S1: living adjustments are going to be on that higher amount. 263 00:16:00,510 --> 00:16:03,390 S1: And it lasts for life. And it's hard to replicate 264 00:16:03,550 --> 00:16:07,630 S1: that safety in the market. So you're protecting against living 265 00:16:07,630 --> 00:16:12,350 S1: a really long time, whereas your portfolio is exposed to 266 00:16:12,390 --> 00:16:15,870 S1: market risk and what's called sequence risk, which is the, 267 00:16:16,070 --> 00:16:19,510 S1: you know, kind of how the, the returns parse out 268 00:16:19,510 --> 00:16:23,910 S1: over the sequence of your retirement years, whereas Social Security 269 00:16:23,910 --> 00:16:27,510 S1: provides that guaranteed floor. The other issue is the, you know, 270 00:16:27,550 --> 00:16:30,670 S1: what's better for the spouse and that if you're married, 271 00:16:30,710 --> 00:16:34,550 S1: that higher benefit continues for the surviving spouse, which is 272 00:16:34,550 --> 00:16:37,470 S1: a big deal, you know, in planning. So I would 273 00:16:37,470 --> 00:16:40,190 S1: say the reason why you might want to take it early, 274 00:16:41,030 --> 00:16:43,630 S1: you know, in your situation like yours is if you 275 00:16:43,630 --> 00:16:47,950 S1: want to draw down the IRAs early as a tax strategy, 276 00:16:48,210 --> 00:16:50,770 S1: that might be the strongest argument for it. Or if 277 00:16:50,810 --> 00:16:54,290 S1: you have health concerns or a family history with a 278 00:16:54,290 --> 00:16:59,330 S1: shorter life expectancy, or you just value liquidity and flexibility 279 00:16:59,330 --> 00:17:03,170 S1: and you prefer having that cash flow earlier. Um, but 280 00:17:03,170 --> 00:17:06,330 S1: I think where some people get it wrong is they think, well, 281 00:17:06,330 --> 00:17:09,290 S1: I'll take it early and invest it. But I think the, 282 00:17:09,290 --> 00:17:14,250 S1: the key question or comparison is delaying with the guaranteed 8% 283 00:17:14,250 --> 00:17:17,770 S1: increase versus taking it early, investing it. And then you 284 00:17:17,770 --> 00:17:20,770 S1: have market risk and taxes. Does that make sense? 285 00:17:20,810 --> 00:17:22,970 S4: Oh, praise the Lord. I've got about seven years just 286 00:17:22,970 --> 00:17:25,810 S4: starting the planning process now. And I certainly appreciate the 287 00:17:25,810 --> 00:17:26,570 S4: sound advice. 288 00:17:27,050 --> 00:17:29,770 S1: Absolutely rusty. Lord bless you, my friend. Thanks for calling. 289 00:17:29,970 --> 00:17:31,850 S1: Let's go down to Florida. Lori. Go ahead. 290 00:17:32,290 --> 00:17:36,169 S5: Yes. Thank you so much for taking my call. I, um, 291 00:17:37,450 --> 00:17:42,290 S5: I am a social worker in Florida and I, um, 292 00:17:43,210 --> 00:17:46,290 S5: have a Florida license and I'm certified down here in Florida. 293 00:17:46,850 --> 00:17:50,700 S5: End of January. I just bought a home in South 294 00:17:50,700 --> 00:17:59,540 S5: Carolina and right now Florida is my primary home. Um, on, uh, 295 00:18:00,580 --> 00:18:04,340 S5: I'm trying to figure out if it's better for me to, 296 00:18:04,380 --> 00:18:08,460 S5: to go ahead and deal with the higher property price 297 00:18:08,460 --> 00:18:11,820 S5: for the secondary home in Carolina until I'm able to 298 00:18:11,859 --> 00:18:15,620 S5: transition over totally and be done with Florida. Right now, 299 00:18:15,619 --> 00:18:19,340 S5: I'm using that money. I do get a retirement, Florida retirement, uh, 300 00:18:19,380 --> 00:18:24,260 S5: which is a little less than 3000. Um, and I 301 00:18:24,300 --> 00:18:26,859 S5: want to, and so I can live off of that 302 00:18:26,859 --> 00:18:29,460 S5: once I retire because I'm not at retirement age. I'm 303 00:18:29,700 --> 00:18:32,820 S5: not 60 yet. And, uh, but I can live off 304 00:18:32,820 --> 00:18:35,780 S5: of that. It's just me. But I do have this 305 00:18:35,780 --> 00:18:38,340 S5: other job with this, this job I've been here in 306 00:18:38,340 --> 00:18:41,500 S5: Florida with, and I can't work this job unless I 307 00:18:41,500 --> 00:18:46,140 S5: have a Florida license because I have to drive. And 308 00:18:46,670 --> 00:18:50,429 S5: if I move over to if I make Carolina my 309 00:18:50,430 --> 00:18:53,830 S5: primary home, then I have to get switched a license 310 00:18:53,869 --> 00:18:57,990 S5: over and then I won't be able to work in Florida. 311 00:18:57,990 --> 00:19:01,110 S5: And I'm just trying to use the income here to 312 00:19:01,550 --> 00:19:04,510 S5: purchase things that I want there. Like I want a 313 00:19:04,510 --> 00:19:07,830 S5: couple of sheds. I, you know, some different things I 314 00:19:07,830 --> 00:19:11,149 S5: want done there. The property, I got 2.7 acres. I 315 00:19:11,150 --> 00:19:13,869 S5: want to lay down some trees and do some things 316 00:19:13,869 --> 00:19:18,030 S5: like that. So I want to use the money. Um, 317 00:19:18,070 --> 00:19:20,990 S5: the house is paid for, but I do have one 318 00:19:20,990 --> 00:19:27,270 S5: outstanding loan of 130,000. Look at over $130,000 that once 319 00:19:27,270 --> 00:19:28,790 S5: I sell the home in Florida, I can just pay 320 00:19:28,790 --> 00:19:33,950 S5: that off anyway. But so I don't know really what 321 00:19:33,990 --> 00:19:37,750 S5: to do. Um, right now Florida is my primary home 322 00:19:38,270 --> 00:19:40,830 S5: and I know that the price goes up. If you 323 00:19:40,830 --> 00:19:44,390 S5: have the secondary home, that's not your primary. They, they 324 00:19:44,390 --> 00:19:50,320 S5: charge you 6% or something instead of 4% on taxes. 325 00:19:51,119 --> 00:19:53,560 S1: Yeah. So are you talking about on the sale, the 326 00:19:53,560 --> 00:19:55,040 S1: capital gain that you'll pay? 327 00:19:56,760 --> 00:19:58,560 S5: Uh, the property tax? 328 00:19:59,400 --> 00:20:00,000 S6: Yeah. Okay. 329 00:20:00,200 --> 00:20:02,800 S5: What would I be? Yeah. Property tax for the home. 330 00:20:02,800 --> 00:20:04,159 S5: That's not primary. 331 00:20:04,840 --> 00:20:05,840 S6: Okay. Yeah. 332 00:20:06,280 --> 00:20:08,800 S5: Yeah. I don't know what to do here in this situation, really. 333 00:20:08,800 --> 00:20:10,760 S5: I'm just kind of working and staying in Florida, but 334 00:20:10,760 --> 00:20:13,800 S5: I'm going back and forth. But that home in Carolina 335 00:20:13,800 --> 00:20:16,240 S5: that I just bought it end of January. That's my 336 00:20:16,600 --> 00:20:18,719 S5: that's my secondary. But they said I wanted to be 337 00:20:18,720 --> 00:20:21,040 S5: my primary. I got to get my license changed over. 338 00:20:21,080 --> 00:20:23,960 S5: I got to do everything to make that my primary. 339 00:20:24,000 --> 00:20:26,240 S5: Then I won't have to pay the higher price for 340 00:20:26,240 --> 00:20:27,160 S5: the taxes. 341 00:20:27,560 --> 00:20:28,000 S6: Yeah. 342 00:20:28,400 --> 00:20:31,160 S1: Well, it sounds like. I mean, at this point, if 343 00:20:31,160 --> 00:20:34,760 S1: I'm understanding correctly, you having a home base in Florida 344 00:20:34,760 --> 00:20:38,639 S1: is pretty critical to your overall plan in terms of 345 00:20:38,640 --> 00:20:41,560 S1: what you're trying to do between now and when you 346 00:20:41,600 --> 00:20:45,690 S1: ultimately relocate to North Carolina, where you now have run 347 00:20:45,690 --> 00:20:48,010 S1: one residence, you're debt free and you're living off of 348 00:20:48,010 --> 00:20:50,490 S1: your retirement, but it sounds like you want to make 349 00:20:50,490 --> 00:20:55,090 S1: some capital investments in the North Carolina property, and your 350 00:20:55,090 --> 00:20:58,890 S1: ability to continue to work in Florida is essential to 351 00:20:58,930 --> 00:21:02,250 S1: making that happen. And so if the if there's a 352 00:21:02,250 --> 00:21:07,810 S1: premium associated with your property taxes or insurance in North Carolina, 353 00:21:07,850 --> 00:21:10,650 S1: sounds like that's a pretty good trade off, just given that, 354 00:21:10,690 --> 00:21:13,730 S1: you know, everything is so dependent on you staying in 355 00:21:13,730 --> 00:21:15,929 S1: Florida and continuing to work, at least for a period 356 00:21:15,930 --> 00:21:17,130 S1: of time. Is that right? 357 00:21:18,090 --> 00:21:19,650 S5: Yes. Right. That's right. 358 00:21:20,010 --> 00:21:22,730 S1: Okay. So it doesn't sound like, you know, it's an 359 00:21:22,730 --> 00:21:27,609 S1: either or. I think it's certainly if I'm understanding everything correctly, yes, 360 00:21:27,609 --> 00:21:30,570 S1: there's a premium you're paying, but we know why you're 361 00:21:30,570 --> 00:21:33,010 S1: paying it. And there's a very good reason for that. 362 00:21:33,210 --> 00:21:35,490 S1: And eventually this will all kind of get you into 363 00:21:35,490 --> 00:21:37,410 S1: a place where you're going to be in a much 364 00:21:37,410 --> 00:21:39,770 S1: better shape. You're going to have your property built out, 365 00:21:39,810 --> 00:21:42,650 S1: you'll be debt free, you'll have a good solid income, 366 00:21:42,650 --> 00:21:44,670 S1: and you should be in good shape. Stay on the line. 367 00:21:44,670 --> 00:21:46,270 S1: We'll talk a bit more off the air. We'll be 368 00:21:46,270 --> 00:21:55,630 S1: right back. We're so thankful you tune in each day. 369 00:21:55,630 --> 00:21:58,750 S1: We're thankful for your notes. We're thankful for your giving. 370 00:21:58,790 --> 00:22:01,350 S1: You know, as a listener supported ministry, we don't do 371 00:22:01,350 --> 00:22:03,910 S1: this without you. And if you love the program, I'd 372 00:22:03,910 --> 00:22:07,909 S1: love to invite you to consider becoming a Faith V partner. Now, 373 00:22:07,910 --> 00:22:12,030 S1: if you go to faith.com/give, you'll be able to read 374 00:22:12,030 --> 00:22:14,150 S1: all about it and what you're going to see. There 375 00:22:14,150 --> 00:22:18,270 S1: is something that we're about to release this summer. It's 376 00:22:18,270 --> 00:22:20,949 S1: a brand new product category here at Faith fi. So 377 00:22:20,950 --> 00:22:23,270 S1: we've got our devotionals. We just came out with our 378 00:22:23,270 --> 00:22:26,510 S1: new devotional, Our Ultimate Treasure. And a lot of people 379 00:22:26,510 --> 00:22:29,790 S1: are just really finding that God's using that in their lives. 380 00:22:29,790 --> 00:22:33,109 S1: And we're so thrilled to hear that we've got our studies, 381 00:22:33,109 --> 00:22:35,550 S1: like rich toward God. On the parable of the Rich fool. 382 00:22:35,630 --> 00:22:38,150 S1: We've got our magazine that comes out four times a year, 383 00:22:38,150 --> 00:22:42,630 S1: but we're introducing a new category called Faith by Field Guides. 384 00:22:42,630 --> 00:22:47,639 S1: So these are interactive, scripture anchored resources designed to help 385 00:22:47,640 --> 00:22:52,320 S1: God's people explore important financial questions through a biblical framework. 386 00:22:52,320 --> 00:22:55,919 S1: So each field guides has a single question that it addresses. 387 00:22:55,920 --> 00:22:57,800 S1: The first one is going to be how much money 388 00:22:57,800 --> 00:23:00,040 S1: is enough? What does it look like to set a 389 00:23:00,040 --> 00:23:02,600 S1: lifestyle cap? The second one is going to be how 390 00:23:02,600 --> 00:23:06,879 S1: do you prepare the next steward? An intentional process that's 391 00:23:06,880 --> 00:23:10,320 S1: biblically anchored on how you prepare the next steward. And 392 00:23:10,320 --> 00:23:11,920 S1: then we're going to move right on from there. We're 393 00:23:11,920 --> 00:23:14,479 S1: really excited about these new tools. They're going to be 394 00:23:14,480 --> 00:23:18,440 S1: the most practical of all the resources we create, and 395 00:23:18,440 --> 00:23:21,240 S1: faithful partners get all of them. Everything we come out with, 396 00:23:21,280 --> 00:23:24,240 S1: you receive it as soon as it releases at your door. 397 00:23:24,240 --> 00:23:28,760 S1: So head over to faith.com/give. And when you give today 398 00:23:28,760 --> 00:23:31,160 S1: and become a partner, it'll be a huge part of 399 00:23:31,160 --> 00:23:34,760 S1: helping to support the ministry. And we would certainly be grateful. Well, 400 00:23:34,760 --> 00:23:37,000 S1: we're taking your phone calls today. If you have a question, 401 00:23:37,000 --> 00:23:40,160 S1: we've got room for you. Uh, call right now 800 402 00:23:40,160 --> 00:23:44,570 S1: 525 7000. Any financial topic, we'd love to tackle it. 403 00:23:44,609 --> 00:23:47,850 S1: In fact, let's do that now. To Naperville. Steve. Go ahead. 404 00:23:47,890 --> 00:23:50,890 S7: Oh, yes, sir, I have a question. I'm a retired. 405 00:23:50,890 --> 00:23:56,250 S7: I have about $30,000 I could to invest. And I 406 00:23:56,290 --> 00:23:58,450 S7: heard that the investing in. How is it to invest 407 00:23:58,450 --> 00:24:01,970 S7: in the market with gold and silver compared to in. 408 00:24:02,450 --> 00:24:05,969 S7: I watched Trinity Broadcasting Network to Kirk Cameron. He says, 409 00:24:06,010 --> 00:24:09,570 S7: you can buy gold coins. Uh, which one is better 410 00:24:09,570 --> 00:24:10,090 S7: to do? 411 00:24:10,130 --> 00:24:10,610 S6: Yeah. 412 00:24:11,050 --> 00:24:15,410 S1: It's a great question. I like gold as an investment. Um, 413 00:24:15,730 --> 00:24:18,570 S1: but I don't want you to overweight there. And this 414 00:24:18,570 --> 00:24:23,490 S1: comes up a lot, especially during times of uncertainty and 415 00:24:23,490 --> 00:24:28,169 S1: where there's geopolitical tensions. Um, the big idea with regard 416 00:24:28,170 --> 00:24:31,610 S1: to gold and silver is, you know, they're less about 417 00:24:31,609 --> 00:24:37,010 S1: growth and more about stability and diversification. And here's why. 418 00:24:37,450 --> 00:24:40,889 S1: Number one, they don't produce any income. So there's no dividends, 419 00:24:40,890 --> 00:24:46,060 S1: there's no interest paid and the long term returns typically 420 00:24:46,060 --> 00:24:49,500 S1: lag the market, the overall stock market. Now you might say, well, 421 00:24:49,500 --> 00:24:51,180 S1: wait a minute, Rob, look at the last couple of years. 422 00:24:51,180 --> 00:24:53,140 S1: And I would say you're right. But when you look 423 00:24:53,140 --> 00:24:58,460 S1: over the last 20, 30, 50, 100 years, uh, historically, 424 00:24:58,460 --> 00:25:01,260 S1: gold and silver do not do as well long term 425 00:25:01,420 --> 00:25:04,980 S1: as the market. So what do they offer? Well, they're 426 00:25:05,020 --> 00:25:09,260 S1: what we would call a hedge against inflation, uh, because 427 00:25:09,260 --> 00:25:12,660 S1: it's a store of value. Uh, they hold their value 428 00:25:12,660 --> 00:25:17,699 S1: typically during times of crisis and they help to diversify you. 429 00:25:17,859 --> 00:25:21,220 S1: Like we read about in Ecclesiastes 11 two from King 430 00:25:21,220 --> 00:25:25,060 S1: Solomon is right now a good time. Uh, you know, 431 00:25:25,220 --> 00:25:29,340 S1: I wouldn't make this decision based on market timing. You know, 432 00:25:29,380 --> 00:25:33,580 S1: gold and silver often spike when fear is high. And 433 00:25:33,580 --> 00:25:37,100 S1: that can mean you're buying at or near the highs. Um, 434 00:25:37,100 --> 00:25:40,420 S1: so I think the better question is, do I have 435 00:25:40,420 --> 00:25:45,230 S1: the right allocation to gold more so than. Is this 436 00:25:45,230 --> 00:25:48,990 S1: the right moment to buy it now? How much should 437 00:25:49,030 --> 00:25:54,110 S1: someone have in their typical portfolio? I would say a 5% 438 00:25:54,109 --> 00:25:57,190 S1: allocation is right for most people. And I would buy 439 00:25:57,190 --> 00:26:01,030 S1: that in physical gold and silver. So, you know, you 440 00:26:01,030 --> 00:26:03,550 S1: might buy the coins or the bars. Maybe, you know, 441 00:26:03,590 --> 00:26:07,510 S1: the one ounce gold piece, you know, could be great. 442 00:26:07,510 --> 00:26:11,190 S1: You buy it, you store it securely, you keep it 443 00:26:11,190 --> 00:26:14,189 S1: forever and you pass it down. And then if you 444 00:26:14,190 --> 00:26:16,869 S1: want to go up to a full position, which I 445 00:26:16,869 --> 00:26:20,430 S1: would say is, is a full 10%, I'd probably use 446 00:26:20,430 --> 00:26:24,109 S1: that second 5%. And I might consider using one of 447 00:26:24,109 --> 00:26:28,990 S1: the gold ETFs like GLD or IAU, where you're essentially 448 00:26:28,990 --> 00:26:33,670 S1: buying a gold tracker that moves in lockstep with the 449 00:26:33,670 --> 00:26:36,470 S1: spot price of gold, but you don't have to take 450 00:26:36,470 --> 00:26:40,930 S1: an additional 5% of physical gold that involves you, you know, 451 00:26:40,970 --> 00:26:43,649 S1: buying it at a premium and storing it and just 452 00:26:43,650 --> 00:26:46,570 S1: all the. The insurance costs and you know, the other 453 00:26:46,570 --> 00:26:49,850 S1: things that come with you taking on gold. I think 454 00:26:49,850 --> 00:26:53,890 S1: the mistake to avoid is going too heavy. You know, 455 00:26:53,930 --> 00:26:58,090 S1: getting up above that 10% allocation, 20, 30%. I think 456 00:26:58,090 --> 00:27:00,050 S1: that would be a mistake. But let me stop there 457 00:27:00,050 --> 00:27:01,050 S1: and get your thoughts. 458 00:27:01,730 --> 00:27:06,090 S7: Oh, I'm just learning. I'm just listening. Yeah. I understand 459 00:27:06,090 --> 00:27:09,210 S7: what you're saying. Uh, what is the the gold tracker again? 460 00:27:09,530 --> 00:27:09,930 S6: Yeah. 461 00:27:09,930 --> 00:27:15,650 S1: So essentially a gold ETF, ETF is exchange traded fund. 462 00:27:15,850 --> 00:27:18,810 S1: And basically it's a way to invest in gold without 463 00:27:18,810 --> 00:27:22,369 S1: physically owning it. So the gold ETF is a fund 464 00:27:22,369 --> 00:27:26,250 S1: that tracks the price of gold. And it trades on 465 00:27:26,250 --> 00:27:29,649 S1: the stock market like a stock. So instead of buying 466 00:27:29,650 --> 00:27:34,730 S1: gold coins you're buying shares that represent gold value. So 467 00:27:34,730 --> 00:27:37,170 S1: you buy it in a brokerage account just like you 468 00:27:37,170 --> 00:27:40,899 S1: would a stock and the fund that you're buying. In 469 00:27:40,940 --> 00:27:43,899 S1: my example, GLD, which is the iShares the biggest one 470 00:27:43,900 --> 00:27:50,220 S1: or IAU with either of those, the fund owns the 471 00:27:50,220 --> 00:27:54,500 S1: physical gold and they store it securely in vaults. And 472 00:27:54,500 --> 00:27:58,540 S1: then the price of the investment, the fund moves up 473 00:27:58,540 --> 00:28:00,780 S1: and down with the price of gold. So if gold 474 00:28:00,780 --> 00:28:04,980 S1: goes up 5%, the ETF roughly goes up the same amount. 475 00:28:05,260 --> 00:28:08,139 S1: And they're easy to buy and sell. You can it's 476 00:28:08,180 --> 00:28:10,379 S1: you have ultimate liquidity because you can trade it. As 477 00:28:10,380 --> 00:28:12,860 S1: long as the market's open, you don't have the storage 478 00:28:12,859 --> 00:28:16,300 S1: and the security concern. So it's lower. It's a lower 479 00:28:16,300 --> 00:28:20,540 S1: cost option than buying coins. And it's very liquid. What's 480 00:28:20,540 --> 00:28:24,260 S1: the downside. The downside is you don't physically own the gold. 481 00:28:24,500 --> 00:28:27,300 S1: And there is a small annual fee that you have 482 00:28:27,300 --> 00:28:30,780 S1: to pay the fund company. And it's still subject to 483 00:28:30,820 --> 00:28:35,139 S1: market fluctuations. But it does have its place. Does that 484 00:28:35,140 --> 00:28:35,780 S1: make sense? 485 00:28:35,940 --> 00:28:37,620 S7: Yes sir. That's g d. 486 00:28:38,420 --> 00:28:40,750 S1: That would be one of them. And then the other 487 00:28:40,750 --> 00:28:45,550 S1: one is, is I a you would be the other ETF. 488 00:28:45,550 --> 00:28:50,270 S1: So the IAU is the iShares Gold Trust. And then GLD, 489 00:28:50,350 --> 00:28:54,790 S1: which is the largest is the Spider Gold Trust. And 490 00:28:54,790 --> 00:28:56,350 S1: that's the biggest one in the world. 491 00:28:57,350 --> 00:29:00,390 S7: Okay. I have one question. Do you think there's going 492 00:29:00,430 --> 00:29:02,070 S7: to be a recession soon? 493 00:29:03,150 --> 00:29:05,550 S1: You know, I have no idea. Um, here's what I 494 00:29:05,550 --> 00:29:08,790 S1: would say is, and actually Bob Dole will be on 495 00:29:08,790 --> 00:29:11,390 S1: in the next segment. Bob has been on Wall Street 496 00:29:11,390 --> 00:29:15,230 S1: for decades. He manages billions of dollars. He's a Christ follower. 497 00:29:15,230 --> 00:29:18,550 S1: You'll see him on CNBC and Fox business all the time. 498 00:29:18,870 --> 00:29:22,590 S1: Bob will tell you we're in a high risk bull market. 499 00:29:22,790 --> 00:29:25,830 S1: Number one, that there's a lot of reasons to be 500 00:29:25,990 --> 00:29:29,470 S1: happy about where we're headed economically because the one big, 501 00:29:29,470 --> 00:29:34,270 S1: beautiful bill is reducing, uh, you know, things that would 502 00:29:34,270 --> 00:29:40,640 S1: disrupt business, namely, it's deregulating, It's lowering taxes. That's a 503 00:29:40,640 --> 00:29:44,920 S1: good thing. It's creating an environment that's pro-business. And we're 504 00:29:44,920 --> 00:29:49,120 S1: seeing very strong corporate earnings still today. Uh, and their 505 00:29:49,120 --> 00:29:53,640 S1: future projections of their earnings are holding up very well. 506 00:29:53,880 --> 00:29:57,120 S1: What's working against us? Well, we're seeing some signs that 507 00:29:57,120 --> 00:29:59,960 S1: inflation is being a bit more stubborn than we would want, 508 00:30:00,000 --> 00:30:04,240 S1: number one. Number two, we've got geopolitical challenges, including a 509 00:30:04,240 --> 00:30:07,680 S1: war going on and oil that's sitting at a $100 510 00:30:07,680 --> 00:30:12,520 S1: a barrel. That's problematic if that continues. That's probably the 511 00:30:12,760 --> 00:30:16,600 S1: the factor that could result in the likelihood of a 512 00:30:16,600 --> 00:30:21,280 S1: recession increasing dramatically. If that's not a matter of weeks 513 00:30:21,280 --> 00:30:24,240 S1: and it becomes a matter of months. We're probably headed 514 00:30:24,240 --> 00:30:27,040 S1: toward a recession. But anytime you're investing, you need to 515 00:30:27,040 --> 00:30:29,560 S1: be looking out ten years plus. And if you are, 516 00:30:29,880 --> 00:30:31,560 S1: you don't have to worry about a recession in the 517 00:30:31,560 --> 00:30:34,320 S1: next year. Hope that helps, Steve. Thanks for your call. 518 00:30:34,320 --> 00:30:44,930 S1: We'll be right back. He's Bob Dahl. I'm Rob West. 519 00:30:44,930 --> 00:30:48,770 S1: It's time for our segment where we talk markets and Bob. 520 00:30:48,810 --> 00:30:51,970 S1: You know, the market was and the economy was chugging 521 00:30:51,970 --> 00:30:54,770 S1: along at a pretty good clip. I mean, you and 522 00:30:54,770 --> 00:30:57,330 S1: I have been talking about how these earnings, corporate earnings 523 00:30:57,330 --> 00:30:59,770 S1: have been coming in pretty strong. And you know we've 524 00:30:59,770 --> 00:31:02,690 S1: got the one big beautiful bill and some bigger tax refunds. 525 00:31:02,690 --> 00:31:04,970 S1: And all of a sudden we go to war. Oh 526 00:31:05,530 --> 00:31:07,250 S1: what do you think that's going to mean for the 527 00:31:07,250 --> 00:31:09,450 S1: global economy over the balance of the year. 528 00:31:10,130 --> 00:31:12,850 S8: Well there's no question those positives you just cited are 529 00:31:12,850 --> 00:31:15,970 S8: still there. The problem is we have some negatives to 530 00:31:15,970 --> 00:31:19,610 S8: offset them. For example, most say that rise in the 531 00:31:19,610 --> 00:31:24,130 S8: price of oil and what it means for consumers probably 532 00:31:24,170 --> 00:31:27,610 S8: negates a lot of the good news from the one big, 533 00:31:27,610 --> 00:31:31,770 S8: beautiful bill. Now, that assumes that oil stays at 100 534 00:31:31,810 --> 00:31:33,729 S8: for a while. We don't know what it's going to 535 00:31:33,770 --> 00:31:36,450 S8: what it's going to do. Rob, if oil does stay 536 00:31:36,450 --> 00:31:39,790 S8: at 100 for a bunch of months. Well, the next 537 00:31:39,790 --> 00:31:42,590 S8: word we'll be talking about is recession. But in the 538 00:31:42,590 --> 00:31:45,510 S8: more likely case, at least, the market is assuming this. 539 00:31:45,550 --> 00:31:49,070 S8: The oil comes back down, the Strait of Hormuz opens up, 540 00:31:49,070 --> 00:31:52,830 S8: and this just becomes a nick or a bump rather 541 00:31:52,830 --> 00:31:55,590 S8: than something that's going to last a lot longer. Well, 542 00:31:55,590 --> 00:31:58,270 S8: then the good things will start to matter again and 543 00:31:58,310 --> 00:31:59,590 S8: we'll be reasonably okay. 544 00:31:59,630 --> 00:32:02,790 S1: Yeah, yeah. Very good. That's helpful. Bob. Let's talk about 545 00:32:02,790 --> 00:32:05,870 S1: those corporate earnings. And maybe even more important than that, 546 00:32:05,910 --> 00:32:09,670 S1: what companies are saying about their expectations. Forward looking. 547 00:32:10,470 --> 00:32:13,830 S8: Yeah. So so the earnings estimates have been slowly moving 548 00:32:13,830 --> 00:32:16,670 S8: higher in the last few weeks. It's been the energy 549 00:32:16,670 --> 00:32:19,270 S8: companies earnings estimates have gone up as the price of 550 00:32:19,270 --> 00:32:22,230 S8: oil has gone up. And there aren't many companies that 551 00:32:22,230 --> 00:32:25,270 S8: are yet saying we know enough about what damage might 552 00:32:25,270 --> 00:32:28,910 S8: be done because of the rise in oil prices. For 553 00:32:28,910 --> 00:32:31,550 S8: any of those estimates to come down. So we're probably 554 00:32:31,590 --> 00:32:35,790 S8: going to see some reductions. Rob, how much again will 555 00:32:35,790 --> 00:32:38,880 S8: depend on how long does the price of oil stay 556 00:32:38,920 --> 00:32:43,000 S8: elevated like this? And only time will tell. But not. 557 00:32:43,000 --> 00:32:44,520 S8: Not too many estimate cuts yet. 558 00:32:44,560 --> 00:32:47,640 S1: Yeah. That's helpful Bob. Uh, you know, as we think 559 00:32:47,640 --> 00:32:51,400 S1: about where this is all headed so often, uh, you know, 560 00:32:51,440 --> 00:32:54,600 S1: as goes the fed, so goes the market. So where 561 00:32:54,600 --> 00:32:57,640 S1: do you think they're sitting today? Just giving, given these 562 00:32:57,640 --> 00:33:02,840 S1: cross currents of sticky inflation, but also softening job markets. 563 00:33:03,440 --> 00:33:06,320 S8: So, so at the moment, what has happened is the 564 00:33:06,320 --> 00:33:11,000 S8: expectations about a potential cut or two this calendar year 565 00:33:11,000 --> 00:33:13,640 S8: by the fed have been taken out of the market 566 00:33:13,640 --> 00:33:15,520 S8: because of the rise in the price of oil. And 567 00:33:15,520 --> 00:33:19,680 S8: the fear about inflation and the job concerns have taken 568 00:33:19,680 --> 00:33:22,480 S8: a back seat. We'll see how long that lasts. If 569 00:33:22,480 --> 00:33:25,880 S8: recession word comes in, you know that they'll be out 570 00:33:25,880 --> 00:33:29,200 S8: there cutting rates. But that's trying to anticipate things that 571 00:33:29,520 --> 00:33:32,880 S8: we can't figure out yet. So the fed is on hold. 572 00:33:33,080 --> 00:33:36,610 S8: Um and with earnings estimates going up and the fed 573 00:33:36,610 --> 00:33:41,370 S8: not hostile. That's generally okay for markets. Now the markets 574 00:33:41,410 --> 00:33:43,810 S8: as long as oil's where it is markets are not 575 00:33:43,810 --> 00:33:46,210 S8: going to go straight up. We're going to bounce around 576 00:33:46,210 --> 00:33:49,410 S8: frankly that we've done now really since about October 1st. 577 00:33:49,730 --> 00:33:53,250 S1: Sure. Bob are you in your portfolios lightning up on 578 00:33:53,250 --> 00:33:55,130 S1: your international exposure? 579 00:33:56,130 --> 00:33:59,130 S8: Uh, we have done some of that. Our, you know, 580 00:33:59,610 --> 00:34:03,410 S8: longer term, we think international will outperform the US stronger earnings, 581 00:34:03,410 --> 00:34:07,290 S8: much cheaper prices and a decline in the dollar. But 582 00:34:07,290 --> 00:34:11,170 S8: that's been significantly interrupted with what's gone on in the 583 00:34:11,170 --> 00:34:15,090 S8: Middle East. The dollar has had some increase. And and 584 00:34:15,730 --> 00:34:18,770 S8: Europe for example is more dependent on the price of 585 00:34:18,770 --> 00:34:21,729 S8: oil than the US is. They're more sensitive. So all 586 00:34:21,770 --> 00:34:24,250 S8: that favors having a little more money come back home. 587 00:34:24,690 --> 00:34:26,930 S1: Very good. All right, my friend, thanks for your time 588 00:34:26,930 --> 00:34:27,610 S1: as always. 589 00:34:28,130 --> 00:34:28,970 S8: Have a great week. 590 00:34:29,530 --> 00:34:33,250 S1: That's Bob Dahl. He's CEO and CIO at Crossmark Global Investments. 591 00:34:33,250 --> 00:34:36,140 S1: You can learn more. Check out his investment commentary. It'll 592 00:34:36,180 --> 00:34:40,540 S1: be delivered to your inbox weekly at crossmark global.com. Let's 593 00:34:40,540 --> 00:34:42,100 S1: head back to the phones. We'll try to get to 594 00:34:42,140 --> 00:34:43,779 S1: as many calls as we can before the end of 595 00:34:43,780 --> 00:34:47,140 S1: the broadcast here today. Danville, Illinois. Larry. Go ahead. 596 00:34:47,260 --> 00:34:50,700 S9: Hi. Um, I just had this question. Um, my wife 597 00:34:50,700 --> 00:34:54,020 S9: and I are both 62 years old. I am continuing 598 00:34:54,060 --> 00:34:57,820 S9: to work, and I plan to work till at least 65. 599 00:34:57,820 --> 00:35:01,220 S9: And depending on how my health is possibly longer. Um, 600 00:35:01,260 --> 00:35:05,340 S9: she stopped working in, uh, outside the home after we 601 00:35:05,380 --> 00:35:08,060 S9: had our children and we had four. And so she's 602 00:35:08,060 --> 00:35:10,939 S9: not been in the marketplace till, I mean, working since 603 00:35:10,940 --> 00:35:15,220 S9: she was for the last 28 years. My question is, um, 604 00:35:15,580 --> 00:35:20,700 S9: we're both 62. I have had previous health conditions, like 605 00:35:20,739 --> 00:35:24,299 S9: two heart stents put in a year ago and two 606 00:35:24,340 --> 00:35:27,459 S9: heart stents put in like five years ago. And I've 607 00:35:27,460 --> 00:35:32,819 S9: actually had reoccurring, um, cancer that's come back like three times. 608 00:35:33,739 --> 00:35:39,600 S9: My question is, should she start drawing her Social Security 609 00:35:40,239 --> 00:35:43,839 S9: and putting it away and investing it? Because if the 610 00:35:43,840 --> 00:35:49,360 S9: average male lives to 74 or 75 and the average woman, 611 00:35:49,360 --> 00:35:55,160 S9: let's say 78 to 79. My point is, um, if 612 00:35:55,200 --> 00:35:58,560 S9: as long as I am working, if something happens to me, 613 00:35:58,560 --> 00:36:01,480 S9: she's going to draw my Social Security, which is going 614 00:36:01,520 --> 00:36:07,520 S9: to be much higher than hers. And if we both wait, um, 615 00:36:08,040 --> 00:36:10,600 S9: would it not post potentially put her in a position 616 00:36:10,600 --> 00:36:13,680 S9: where she would never draw anything out of her Social Security? 617 00:36:14,080 --> 00:36:17,360 S1: Yeah, it's a great question. And that's an important nuance. 618 00:36:17,360 --> 00:36:21,320 S1: And the health factor does change things a bit. Um, 619 00:36:21,320 --> 00:36:25,120 S1: so she can't draw your Social Security while you're still 620 00:36:25,120 --> 00:36:27,640 S1: working unless you file for benefits. It sounds like you 621 00:36:27,640 --> 00:36:30,719 S1: know that, but if we factor in your health and 622 00:36:30,760 --> 00:36:32,719 S1: obviously we don't know the day or the hour, any 623 00:36:32,719 --> 00:36:35,649 S1: of us will be called home. Um, but you know, 624 00:36:35,690 --> 00:36:38,770 S1: the the delay as long as possible. Uh, you know, 625 00:36:38,810 --> 00:36:42,290 S1: may not apply here because if you pass away, she's 626 00:36:42,290 --> 00:36:47,370 S1: going to receive your benefit, the survivor benefit based on, uh, 627 00:36:47,370 --> 00:36:50,969 S1: what you were receiving or would be entitled to receive. 628 00:36:51,450 --> 00:36:55,649 S1: And so your decision matters most if you delay, that 629 00:36:55,650 --> 00:36:58,930 S1: means a larger survivor benefit for her. So you don't 630 00:36:58,930 --> 00:37:03,170 S1: want to take it earlier. Um, but in this case, 631 00:37:03,170 --> 00:37:06,170 S1: it probably makes sense for her to take her benefit 632 00:37:06,170 --> 00:37:10,370 S1: early because she can collect her own reduced benefit now 633 00:37:10,610 --> 00:37:15,490 S1: and then switch to your larger survivor benefit later. Her 634 00:37:15,489 --> 00:37:20,009 S1: early claim does not reduce her survivor benefit, so long 635 00:37:20,010 --> 00:37:23,210 S1: as she's at least full retirement age when she collects 636 00:37:23,330 --> 00:37:26,130 S1: or switches over to to your survivor or her survivor 637 00:37:26,130 --> 00:37:28,850 S1: benefit based on your record. Does that make sense? 638 00:37:29,690 --> 00:37:32,049 S9: Yeah. And basically, that's what I was thinking whenever you 639 00:37:32,050 --> 00:37:35,100 S9: talk to people, let's say the Social Security office, they're 640 00:37:35,100 --> 00:37:37,299 S9: always saying, oh, well, you should wait because you know 641 00:37:37,340 --> 00:37:39,859 S9: where you could be. And if we were both in 642 00:37:39,900 --> 00:37:43,379 S9: perfectly good health and, um, you know, it may make 643 00:37:43,380 --> 00:37:47,580 S9: sense because, you know, yeah. Um, maybe we'll live past 80, 644 00:37:47,860 --> 00:37:50,700 S9: in which case, you know, based on my basic math 645 00:37:50,700 --> 00:37:53,740 S9: and what I've seen on the numbers, um, you know, 646 00:37:54,060 --> 00:37:59,900 S9: it then would pay off to have, have waited, but um, given, um, 647 00:37:59,940 --> 00:38:03,500 S9: I'm just saying the metrics of where the average male 648 00:38:03,500 --> 00:38:08,219 S9: lives and given my previous health conditions, I'm thinking, I mean, 649 00:38:08,260 --> 00:38:10,940 S9: and you again, you mentioned it. Neither of us know 650 00:38:10,940 --> 00:38:13,859 S9: how long only God does. Um, but to me, it 651 00:38:13,860 --> 00:38:15,979 S9: would make more sense to take hers, let her start 652 00:38:15,980 --> 00:38:19,459 S9: investing it because she's going to get mine anyway. Um, 653 00:38:19,460 --> 00:38:22,060 S9: and what's the worst that happens? We both live to 654 00:38:22,100 --> 00:38:25,340 S9: like 80 or 81. Oh, we'll worry about that then. 655 00:38:25,700 --> 00:38:28,739 S1: Right, right. No, I certainly understand it. And I think 656 00:38:28,739 --> 00:38:31,460 S1: the key here is you're letting yours continue to grow, 657 00:38:31,830 --> 00:38:36,230 S1: which obviously you'll enjoy both of them. While you're both living. 658 00:38:36,230 --> 00:38:38,110 S1: And then at some point, you know, when the Lord 659 00:38:38,110 --> 00:38:40,750 S1: if you were to to pass away first, then she 660 00:38:40,750 --> 00:38:44,710 S1: has the opportunity to switch over to that survivor benefit, 661 00:38:44,710 --> 00:38:47,910 S1: which would be a higher benefit. And she was collecting 662 00:38:47,910 --> 00:38:50,710 S1: hers while she's waiting, you know, for that time to come. 663 00:38:50,710 --> 00:38:53,109 S1: So yeah, I'm on board with the way you're thinking here. 664 00:38:53,110 --> 00:38:54,910 S1: I think it makes a lot of sense. Larry, we 665 00:38:54,910 --> 00:38:58,150 S1: appreciate your call today, sir. Call anytime. Uh, shaman is 666 00:38:58,150 --> 00:38:59,470 S1: in South Carolina. Go ahead. 667 00:38:59,510 --> 00:39:03,430 S10: Hey, Rob, I appreciate your ministry so much. Uh, my 668 00:39:03,430 --> 00:39:08,029 S10: question has to do with converting from a traditional IRA 669 00:39:08,190 --> 00:39:11,469 S10: to a Roth, and I want to do that so 670 00:39:11,469 --> 00:39:15,549 S10: that I can avoid tax implications should I need to 671 00:39:15,550 --> 00:39:18,750 S10: get into that money and for my heirs so that 672 00:39:18,750 --> 00:39:22,070 S10: they don't have to pay taxes on it as well. Um, 673 00:39:22,110 --> 00:39:27,510 S10: I've got about 600,000 in a traditional IRA. Should I 674 00:39:27,510 --> 00:39:30,800 S10: go ahead, rip the band aid off, convert it Converted 675 00:39:30,800 --> 00:39:34,319 S10: all pay all the taxes up front. How should I 676 00:39:34,719 --> 00:39:39,880 S10: convert this incrementally over the next few years? Another piece 677 00:39:39,880 --> 00:39:43,640 S10: of this is I am not drawing Social Security yet, 678 00:39:43,680 --> 00:39:47,400 S10: even though I'm just about three weeks away from 69. 679 00:39:47,920 --> 00:39:51,480 S10: I delayed that. My husband has been drawing Social Security 680 00:39:51,640 --> 00:39:57,040 S10: for about six years, and I'm waiting until it is 100% 681 00:39:57,040 --> 00:39:59,920 S10: funded at 70 is my goal. 682 00:40:00,239 --> 00:40:02,839 S1: Yeah, good, I like that. Yeah. You know, the key 683 00:40:02,880 --> 00:40:06,799 S1: here is that Roth conversions are all about managing tax brackets, 684 00:40:06,840 --> 00:40:10,240 S1: not avoiding taxes. So the question isn't should I convert? 685 00:40:10,239 --> 00:40:12,920 S1: It's really how much should I convert each year without 686 00:40:12,920 --> 00:40:16,799 S1: jumping into a much higher tax bracket? Once you make 687 00:40:16,800 --> 00:40:20,560 S1: the decision, you want to convert. And that's where converting 688 00:40:20,560 --> 00:40:23,080 S1: all at once is really problematic. I mean, it could, 689 00:40:23,320 --> 00:40:25,680 S1: you know, push you into the highest brackets. You know, 690 00:40:25,719 --> 00:40:28,759 S1: the top end at 37%. Not only that, but it 691 00:40:28,760 --> 00:40:32,660 S1: could trigger or would trigger higher Medicare premiums through what's 692 00:40:32,660 --> 00:40:36,940 S1: called Irma and a higher percentage of your Social Security 693 00:40:36,940 --> 00:40:40,100 S1: being taxable up to 85%. So that would create a 694 00:40:40,100 --> 00:40:44,540 S1: massive one year tax bill unnecessarily. It's almost never the 695 00:40:44,540 --> 00:40:48,460 S1: best move. So the preferred strategy is in fact incremental. 696 00:40:48,460 --> 00:40:52,940 S1: You convert it in chunks over multiple years. You fill up. 697 00:40:53,460 --> 00:40:55,900 S1: You know, that's a term where you're kind of because 698 00:40:55,900 --> 00:40:59,900 S1: we're on a graduated tax system. Um, you fill up 699 00:40:59,900 --> 00:41:03,299 S1: the lower brackets each year, like the 12 and the 22, 700 00:41:03,340 --> 00:41:07,500 S1: maybe the 24. You stay below the the key thresholds 701 00:41:07,700 --> 00:41:11,420 S1: and that smooths it smooths out the taxes and keeps, 702 00:41:11,460 --> 00:41:14,380 S1: you know, more of your money in your pocket. And, 703 00:41:14,420 --> 00:41:17,859 S1: you know, this can work well for you. Uh, you're 704 00:41:17,860 --> 00:41:20,580 S1: in a prime window because you're in a lower taxable 705 00:41:20,580 --> 00:41:23,779 S1: income bracket. You haven't started Social Security, but I still 706 00:41:23,780 --> 00:41:26,460 S1: don't think you want to. You know, just rip off 707 00:41:26,460 --> 00:41:28,660 S1: the band aid and do it all at once because 708 00:41:28,660 --> 00:41:31,670 S1: you would push push it way up and end up 709 00:41:31,670 --> 00:41:35,230 S1: paying more in taxes unnecessarily. So. Yes, you should start 710 00:41:35,230 --> 00:41:37,670 S1: right now. If this is the way you want to go, 711 00:41:37,830 --> 00:41:41,110 S1: but I would still sequence it over over a number 712 00:41:41,110 --> 00:41:42,630 S1: of years, if that makes sense. 713 00:41:43,630 --> 00:41:47,870 S10: Makes perfect sense. One more question about Social Security. Can 714 00:41:47,910 --> 00:41:51,589 S10: you draw your Social Security and have it go directly 715 00:41:51,590 --> 00:41:52,590 S10: into the Roth? 716 00:41:53,950 --> 00:41:57,030 S1: Uh, no. You have to have earned income to fund 717 00:41:57,030 --> 00:41:59,710 S1: a Roth. And if you don't, you would not be 718 00:41:59,710 --> 00:42:01,750 S1: able to do that. The only other caveat I would 719 00:42:01,750 --> 00:42:04,109 S1: throw out there is for any giving you want to 720 00:42:04,110 --> 00:42:06,310 S1: do out of this, I would leave it in the 721 00:42:06,310 --> 00:42:09,910 S1: traditional IRA because you can give it straight to a 722 00:42:09,910 --> 00:42:13,589 S1: ministry as a qualified charitable distribution and never pay any 723 00:42:13,590 --> 00:42:16,070 S1: tax on it. Even if you want to switch from giving, 724 00:42:16,070 --> 00:42:18,390 S1: you were going to do out of savings. Let's talk 725 00:42:18,390 --> 00:42:19,989 S1: about that off the air. Stay on the line. I 726 00:42:19,989 --> 00:42:22,190 S1: want to make sure you understand that Faith and Finance 727 00:42:22,230 --> 00:42:24,830 S1: Live is a partnership between Moody Radio and Faith fi. 728 00:42:24,870 --> 00:42:26,629 S1: We'll see you tomorrow. Come back and join us then. 729 00:42:26,630 --> 00:42:27,070 S1: Bye bye.