S1: Then I saw that all toil and all skill and
S1: work come from a man's envy of his neighbor. This
S1: also is vanity and a striving after wind. Ecclesiastes four four. Hi,
S1: I'm Rob West. Ecclesiastes shows us how even good work
S1: can go wrong when driven by envy. What starts as
S1: diligence can quickly become a pursuit of status. Today we'll
S1: look at how chasing approval leaves us empty and how
S1: God invites us into something much greater. Then it's on
S1: to your calls at 855 7000. This is faith and finance.
S1: Live biblical wisdom for your financial journey. The Bible says
S1: Ecclesiastes targets all the ways we try to build meaning
S1: and purpose in life apart from God. It gives voice
S1: to the preacher, who carefully exposes the emptiness of paths
S1: like pleasure, wealth, and status. In recent weeks, we've looked
S1: at the idols of pleasure and accumulation. Today we turn
S1: to the idol of status. This one can be harder
S1: to spot. The line between excellence and envy is thin.
S1: Ecclesiastes four four says, then I saw that all toil
S1: and all skill and work come from a man's envy
S1: of his neighbor. That's a striking thought. Our motivation may
S1: not be love of the work or calling. It's often
S1: the quiet urge to compete, to keep up, to be seen.
S1: That's what status does. It whispers you're not enough unless
S1: others notice you. And without realizing it, our careers, spending,
S1: and even our generosity can become ways of proving our worth.
S1: Keeping up with the Joneses isn't just a saying, it's
S1: a way of life for many. We compare houses, vacations, schools,
S1: and the pressure to match others can lead to debt, burnout,
S1: and dissatisfaction with what God has already provided in our
S1: digital age. The pressures amplified. Social media showcases only the
S1: highlight reel, not the debt, exhaustion or stress that often
S1: accompany it. But we still scroll and wonder why not me?
S1: Ecclesiastes answers that longing with honesty. In verse eight, the
S1: preacher describes someone who works tirelessly, builds wealth, but has
S1: no one to share it with. There is no end
S1: to all his toil, and his eyes are never satisfied
S1: with riches. It's a picture of success without joy, activity
S1: without peace. A full schedule, but an empty soul. But
S1: then he offers a better way. In verse six, we
S1: read better is a handful of quietness than two hands
S1: full of toil and a striving after wind. In other words,
S1: it's better to have less with peace than more with anxiety.
S1: That's not laziness, it's wisdom. A life lived with margin
S1: grounded in God's provision. This is the invitation Ecclesiastes extends
S1: not to give up on excellence, but to anchor it
S1: in the right place. When our work flows from a
S1: love for God and a desire to serve others, it
S1: becomes a blessing, not a burden. It becomes worship. We
S1: don't need applause. We need peace. And in Christ we
S1: already have it. His approval is not based on performance.
S1: It's based on grace that frees us from striving to
S1: be seen and lets us rest in being known. Maybe
S1: that's where you are tired, overextended, wondering what you're chasing.
S1: Ecclesiastes invites you to step off the treadmill of comparison.
S1: You don't have to strive for identity. You already have it.
S1: In Jesus, we see examples of this all the time.
S1: A professional sacrifices evenings and weekends to climb the corporate ladder,
S1: only to feel lonely at the top. A family maxes
S1: out their budget to project an image while tension quietly
S1: builds at home. These aren't just stories, they're warnings. They
S1: also echo Ecclesiastes caution about what we're trading in our
S1: pursuit of more. Sometimes this isn't just about envy. It's
S1: about fear. Fear of being unseen, of being left behind.
S1: So we push harder, hoping success will quiet that fear.
S1: But only God can give the peace we're looking for.
S1: Contentment doesn't mean quitting. It means redefining success. It means
S1: anchoring your worth in something that lasts. When you stop
S1: striving in vain, your ambition gets reoriented. Your work becomes
S1: more joyful. Your giving becomes more meaningful. So today, ask yourself,
S1: who am I trying to impress? What am I really chasing?
S1: If your hands are full but your heart is empty,
S1: Ecclesiastes invites you to trade performance for peace. True success
S1: isn't about being noticed or admired. It's about being faithful
S1: with what God has given you. It's not something you
S1: have to earn or achieve. In Christ, you have nothing
S1: to prove, because in him you are deeply loved, fully known,
S1: and eternally valued. And if you want to dig deeper
S1: into these themes, we've created a new study just for you.
S1: It's called Wisdom Over Wealth, and it explores what Scripture,
S1: especially the book of Ecclesiastes, has to say about money, work,
S1: and living for what really matters. This month, when you
S1: give $35 or more to support the ministry, we'll send
S1: it to you as our thanks. Just visit giphy.com. We'll
S1: be right back.
S2: The opinions offered during this program represent the personal or
S2: professional opinions of the participants, given for informational purposes only.
S2: Any information provided is not intended to replace advice from
S2: a financial, medical, legal or other professional who understands your
S2: specific situation.
S1: Great to have you with us today on Faith and
S1: finance live. I'm Rob West. Well, it's time to take
S1: your calls and questions today. We'd love to tackle whatever
S1: you're thinking about in your financial life. That number to
S1: call today to get in on the conversation with lines
S1: open is 800 525 7000. Again, that's 800 525 7000.
S1: We'd love to consider whatever you're considering. Perhaps it's paying
S1: off some debt. Maybe you're stuck in some high interest debt.
S1: You just can't seem to shake it. Well, we can
S1: give you some thoughts moving forward. Perhaps it's your credit score.
S1: Maybe you want to try to get that up or
S1: investing for the future. Maybe it's aligning your values to
S1: your investments. You know, there's a growing movement of faith
S1: based investing that is really exciting right now with some
S1: world class products, not only in the mutual fund space,
S1: but exchange traded funds as well, which makes these investments
S1: more accessible than ever before. In fact, there's some really
S1: new developments coming. I was on a part of a
S1: meeting last week with a new startup around a robo
S1: advisor for faith based investing. That's right. Robo advisors essentially
S1: allow you to start with a very small amount. You
S1: answer some questions. An algorithm essentially builds the portfolio for
S1: you using often exchange traded funds. So you capture the
S1: broad moves of the market over time. It's very low cost,
S1: really efficient way, especially for new investors. But this solution
S1: would basically do the same thing. Smartphone driven, beautiful website,
S1: but only with faith based investments. So these these robo
S1: advisor portfolios would consist of a mix of all of
S1: the best asset managers in the faith based investing space.
S1: You could get started with as little as $50 and
S1: invest systematically. Well, that's just an example of the kind
S1: of innovation that's happening in the space that I am
S1: really excited about. So whatever you're thinking about in your
S1: financial life today, our goal to help you be a
S1: wise and faithful steward. So call right now with your
S1: questions 800 525 7000. Before we head to the phones
S1: in the news today, the soaring cost of college and
S1: unclear degree pathways are pushing many students to skip or
S1: drop out. According to a recent survey by Lotion, a
S1: higher education technology provider. Here's a breakdown 59% of current
S1: students have considered dropping out due to financial stress. That's
S1: led to a significant drop in college enrollment. Only 62.8%
S1: of 2024 high school grads enrolled in college. That's a
S1: four point decline. Since 2019, 56% of non enrollees and 53%
S1: of current students cited expense as the main deterrent. A
S1: nearly 25% of respondents who had dropped out of college
S1: say they won't return due to upfront costs and feel
S1: they're too burdened by existing debt. With college debt these days,
S1: it's a wonder that number isn't even higher. Students are
S1: also looking for alternatives and are turning to vocational training
S1: and certificates, but over half are still unaware of these options.
S1: Here's what I would say. There are other options to
S1: pay for college or a trade or vocational school other
S1: than borrowing, so keep your borrowing as low as possible.
S1: In fact, better yet, no borrowing would be my ideal
S1: for you as you think about entering college. Get creative
S1: scholarships and grants. You've got to be intentional and you've
S1: got to be really thoughtful about it. But you can
S1: earn scholarships and grants. Also working as an option on campus.
S1: You know, it won't surprise you, but I manage the
S1: Christian radio station at at my college the final year,
S1: I was also an RA, a resident assistant and had
S1: my room and board covered. My wife, well, she got
S1: over $150,000 in scholarships. They were very intentional about it.
S1: She applied probably for hundreds of scholarships. So there are
S1: ways to pay for school. Don't just default automatically to those, uh,
S1: those student loans, which I think in part has made college, uh,
S1: unaffordable for so many, specifically because they've been able to
S1: continue to raise the price of of the sticker price
S1: of the tuition because they know that students are able
S1: to basically borrow an unlimited amount, and that's allowed them
S1: to far outpace, uh, regular inflation with regard to tuition inflation.
S1: So some things to think about, especially as we get
S1: prepared to, uh, send another crop of, uh, freshmen off
S1: to begin their college experience. One of mine will be
S1: included in that. My second oldest headed off to college
S1: this fall and really excited for him. But hey, let's
S1: turn our attention to your questions today. We'll be diving
S1: into those in just a moment. The number to call
S1: to get in on the conversation today is 800 525 7000.
S1: Let's begin in chat. Chat about recently. Um is more
S1: and more of our listeners are wanting to align their
S1: values with their, uh, let's call it financial institutions. So
S1: as you think about who you do business with, and
S1: I was just talking about the opportunity for you to
S1: align your faith with your investment decisions, uh, you know,
S1: that can carry over into other aspects of your financial life.
S1: It can go beyond that. But certainly in your financial life.
S1: And what increasingly, some of our listeners are finding is that, uh,
S1: they want to do that with their banking relationship, especially
S1: with some of the bigger banks, perhaps giving money, part
S1: of the profits they're earning from your account to things that, uh,
S1: our listeners don't agree with or don't align with. And
S1: one of those opportunities is to be able to use
S1: a banking partner like Kcu consumer. Christian. Excuse me, Christian
S1: Community Credit Union and what the team at Kcu has
S1: done as of late is put a special incentive in
S1: place that they're really excited about that has allowed specifically
S1: Faith VI partners to earn a bonus when they open
S1: a checking savings or visa cash back card. Kcu has
S1: been providing Christian banking solutions to thousands of Christ followers
S1: and ministries over the last 68 years. So they've been
S1: at this a long time, and not only are they
S1: there to serve believers, but a portion of every dollar
S1: is given to Christian ministries. So if you'd like to
S1: learn about this special offer, we would just encourage you
S1: to head to faith banking. That's faith. And then when
S1: you're there, be sure to enter the code faithfully, and
S1: that will ensure that you get to take advantage of
S1: this bonus again, faithfully. All right. Looks like John is ready,
S1: but we're going to head to a break here in
S1: just a second. We did have some technical issues, but
S1: I think the team has been able to resolve those.
S1: So John, if you stay on the line as soon
S1: as we get back from this break, we will dive
S1: into your question. I know Mary is holding as well
S1: and we've got room for you. So if you'd like
S1: to jump in on the conversation today, go ahead and
S1: do that right now. When you call 800 525 7000.
S1: You know here on Faith and Finance Live. Our goal
S1: each day is that we would encourage you, equip you
S1: to live as a wise and faithful steward, ultimately for
S1: you to see God as your ultimate treasure. There is
S1: nothing in this world that will satisfy you your longings
S1: for connection and for fulfillment and your identity. All of
S1: that is found in Christ money. Well, it's a tool
S1: to accomplish God's purposes. So we want to help you
S1: get in its proper place. This is faith in finance. Live.
S1: I'm Rob West. A quick break and back with much
S1: more after this. Stay with us.
S3: And great to have you with us today on faith
S3: and finance live. I'm Rob West. Let's head right back
S3: to the phones. Chatsworth, GA.
S1: That's Georgia, by the way. John, thanks for calling today.
S1: Sorry we had some trouble getting you on. I think
S1: we've got you there now. Go ahead. Sir.
S4: Yes, sir. I was going to. I'm 60 years old.
S4: I'm disabled, and I'm wondering if money is so tight.
S4: Is it worth my time and trouble investing a few
S4: dollars a month in acorns?
S3: Hmm.
S1: Yeah.
S3: Uh, you know.
S1: I think it can be a great way. So, for
S1: the benefit of our audience, it's essentially acorns is a
S1: part of the fintech movement that is financial technology that's
S1: largely app and web based. It's essentially a Micro-investing app.
S1: That means small investments that add up over time. And
S1: what they're best known for is they're what's called roundup,
S1: where they round up your everyday purchases and invest spare change.
S1: So essentially it's an automatic savings and investing approach. So
S1: you spend you know, $1.72. And then they're going to
S1: round it up to $2 and put $0.28 in your investment.
S1: Or yeah, in your investment account. And the thing that
S1: they're kind of driving at is you don't even really
S1: feel it, but that over time these micro investments can
S1: really add up. And I like the automatic nature of it.
S1: I think especially when you're just getting started being automated
S1: with your savings and your investments is always a good thing.
S1: I like that it's a dollar cost averaging approach, meaning
S1: you're investing, you know, no matter whether the market is
S1: up or down, you're just consistently investing. That's a good strategy.
S1: It's beginner friendly. Um, now it skews younger. Just because,
S1: you know, the younger generations are more apt to use, uh,
S1: apps and websites. But, um, it is, it's beginner friendly.
S1: So there's a simple interface which makes it ideal for
S1: new investors. Uh, they use ETFs, so it's plenty diversified,
S1: which is a good thing. And then they try to
S1: bring in some education along the way. Um, it can
S1: be a little high on the price, especially for smaller
S1: balances because you're going to pay, you know, maybe $5
S1: a month, which, you know, if you only have $25 invested,
S1: that's a lot of money percentage wise. But as you
S1: build up the balance, you know that that fee becomes
S1: pretty minimal. Um, you can't choose specific investments, but that's
S1: not a bad thing as you're getting started and, um,
S1: you know, I think as you become a larger investor
S1: over time, there will be better options for you. So
S1: that's a long answer to a short question if you're
S1: just starting out. Yes, I like it. I think it
S1: can add up over time. And the key is, you know,
S1: you stay consistent, you smart, you start small and you'll
S1: have something meaningful in due time. I would be looking
S1: John along the way to see how can I do
S1: even more. I mean, it's one thing to do rounding
S1: up to the next dollar and investing a micro deposit.
S1: It's another thing for you to go back to the
S1: budget and say, what can I cut back so that
S1: I can just automatically sweep, you know, $200 or $400
S1: into my investments every month? You may not be able
S1: to do that, but if you could, you know, obviously
S1: that's going to be more meaningful over time. But at
S1: the end of the day, I think it can be
S1: a great way for you to get started. Does that
S1: make sense?
S4: Thank you so much. Absolutely does.
S1: Alrighty. Thank you for your call today, John. We appreciate
S1: you being on the program. Uh, 800 525 7000 to
S1: Twin Lakes, Wisconsin. Hi, Mary. Go ahead.
S5: Hi. Um, I owe $15,000 to IRS due to capital
S5: gain tax. I have $180,000 CD that's going to mature,
S5: and I'm wondering if it's better to take that 100,
S5: take 15 out of the 180, because the 180 was
S5: going to be used to bring our, um, uh, our
S5: mortgage down, or should I take the, um, or should
S5: I take, uh, like a small loan from the IRS
S5: and just pay off the $15,000 slower?
S1: Yeah. Well, you know, I want to get into some
S1: of the details here, but I would just say right
S1: up front, if you've got a $15,000 tax bill, that
S1: should be your biggest priority because that the IRS is
S1: the worst creditor, not mainly because of the financial implications,
S1: because when you put the interest and the penalties together,
S1: it can run you 30% a year. So that's even
S1: more than a credit card. And so we want to
S1: get that paid off. And I'd rather you do that
S1: not by borrowing. Um, but if you've got the money
S1: to do it, let's get it done. But let's talk
S1: about this idea of you taking this CD money to
S1: put into the house through a refi. What is your
S1: house worth today based on everything you know.
S5: About 350.
S1: All right. What do you owe on it currently?
S5: Oh, we just bought in October, so we're still way
S5: up there with what we owe.
S6: Okay. So what?
S5: Our mortgage is insanely high.
S6: Our mortgage is, like.
S5: 26 right now. The rate is, um, I think, uh,
S5: seven point, uh, 7.6, 7.7, I think.
S6: Okay.
S1: All right. And what were you saying your way up there?
S1: What did you mean by that? You mean the balance
S1: on the mortgage?
S5: Oh, yeah. The balance on the mortgage is huge. It's
S5: over 300,000, but I don't I want to maybe reinvest
S5: that money minus the 15,000. Um, so that I could
S5: wait a little bit longer for the interest rates to
S5: drop because I don't want to refinance now, but my
S5: CD is coming to maturity now, so.
S6: I want to.
S5: Refinance in in time.
S1: Yeah. No, I think that's right. You really want to
S1: save at least a point and a half, maybe two points.
S1: So that means you'd want a rate of at least 6%
S1: or less, preferably five and a half, because you've got,
S1: you know, perhaps as much as 5% in just fees
S1: and expenses and closing costs on that refinance, so on
S1: a $300,000 loan. And I realize it might be less
S1: than that if you put some of this 180 toward it, but,
S1: you know, that's $15,000 in fees right up front. And
S1: so you've got to be able to save a point
S1: and a half to two points so that that savings
S1: from the interest, as long as you're going to stay
S1: there at least 5 to 7 years, you're going to
S1: be paid back in the form of lower interest, um,
S1: you know, by waiting. And then you'll enjoy that lower payment,
S1: that lower interest rate for the rest of the mortgage.
S1: So what I would say is you're absolutely right, now
S1: is not the time to refinance until you can get
S1: at least 6% or lower, preferably five and a half.
S1: But I would when this CD comes due, go ahead
S1: and take care of that IRS debt. And then depending
S1: on your time horizon for that money, either roll it
S1: over into another CD or keep it in high yield savings. Um,
S1: but I would get that IRS debt paid and I'd
S1: wait on refinancing. Thanks for your call, Mary. We'll be
S1: right back on Faith and Finance Live. Hey, thanks for
S1: being with us on Faith in finance. Live here on
S1: Moody Radio. Let's head right back to the phones. By
S1: the way, I do have a few lines open if
S1: you have a question today. Something going on in your
S1: financial life, call right now 805 257. And we welcome
S1: Mark to the broadcast. Go ahead sir.
S7: Hi, Rob. I just wanted to find out from you
S7: where would you place, uh, tax free municipal bonds in
S7: a portfolio?
S1: Yeah, it's a good question, mark. I mean, basically, these
S1: can be a smart fit for conservative portfolios or for
S1: that conservative portion of the portfolio or specifically for the
S1: income generating part of your portfolio, especially if you're in
S1: a higher tax bracket because they offer steady income that's
S1: usually exempt from federal and even sometimes state taxes. Uh,
S1: as you probably know, they don't grow like stocks, but
S1: they can help preserve the wealth and reduce your overall
S1: tax bill. So this is a good option for retirees
S1: or those needing lower risk, tax efficient income. So I
S1: would say, you know, that's really kind of how you
S1: want to think about it in that income generating or
S1: the more conservative kind of portion of that portfolio. So,
S1: you know, if we were, you know, if you're 70
S1: years old, uh, you know, we might say, okay, we'd
S1: want 40% somewhere between 30 and 40% to stay in,
S1: in stocks. And then we'd want, uh, you know, 60%, um,
S1: to be in, uh, bonds, uh, or maybe as much as,
S1: as 70%, depending on how conservative you want to be.
S1: And then for that bond portion, maybe you put somewhere
S1: between 25 and 50% in munis, especially if you're in
S1: a high tax bracket. Does that make sense?
S7: Yes it does. Thank you very much. I'm going to
S7: give that some consideration. Thank you.
S1: All right Mark, thanks for your call today. Uh, Chicago
S1: is where Lorraine is located. Hi, Lorraine. Go ahead.
S8: Uh, yes, I would like to ask the question about annuities. Um,
S8: I was thinking of investing in annuity, um, 19,000 into
S8: a fixed annuity. And it supposed to be an income
S8: for life.
S1: Okay, yeah. So you're wondering about, uh, with fixed annuities, essentially, uh,
S1: this is a type of investment that's going to give
S1: you a guaranteed. Um, they are complex, though, in the
S1: sense that, you know, they're not all created equal. They've
S1: got a lot of fees and expenses. And, you know, they, um,
S1: you are going to lose access to the money, at
S1: least for a period of time. Um, are you looking
S1: to just continue to grow this or are you wanting
S1: to convert it to an income stream right now?
S8: No, I'm looking to grow it. But where it's at now,
S8: it's not growing any interest. This is a 401 K
S8: from an old job, so it's not growing anything. So
S8: I want to move it.
S1: Yeah. Yeah. So you know the, the other option, which
S1: would be more in line with where I would typically go,
S1: is just to roll that old 401 into an investment account.
S1: Well back up. Do you have an existing 401 with
S1: a new employer or are you retired? What's your situation?
S8: No, I'm not retired and I don't plan on investing
S8: in the company that I'm in because I'm planning on
S8: getting back into the school system where my pension is
S8: still sitting there.
S1: Ah. Got it. Okay. And what do you have in
S1: this 401 K from the previous employer?
S8: Uh, 19,000.
S1: Okay. Got it. Yeah. And do you have an IRA
S1: Roth or traditional?
S8: Um, I do have a no, I don't, because I
S8: have a fidelity. Uh, I mean, Merrill Edge, something like that.
S8: And it's not. It's doing pretty decent, but I don't.
S6: Know.
S1: What type of account is that. Is that an IRA.
S8: Is this IRA? Yes, that's what it says.
S1: All right. And what about moving? Just rolling this into
S1: that IRA and investing it in the same things rather
S1: than the fixed annuity? What is it that's drawing you
S1: to the fixed annuity?
S8: Um, I'm a little confused because they had said, you know,
S8: income for life, but you won't start collecting that income
S8: for life until age 74. So that's why I don't
S8: think I don't I'm not going to do that.
S1: Yeah. Okay. Well, essentially an annuity is an insurance contract
S1: where you give them a lump sum of money and
S1: then in return, they promise to pay you a fixed amount,
S1: usually monthly, for a set period of time. Now you
S1: don't have to annuitize right away. You can just earn
S1: whatever rate they're providing until you're ready to annuitize. And
S1: then essentially it becomes a personal pension. So just kind
S1: of like your teachers pension, this would be a personal
S1: pension where you're turning over a lump sum of money
S1: that that again grows at a guaranteed interest rate. And
S1: then you don't lose money when the market drops, but
S1: you also won't see big gains. And then you could
S1: convert that into an income stream. Now, it wouldn't be
S1: very much with 19,000 in terms of an income stream,
S1: but it does give you that guaranteed increase. The downside
S1: is there's limited growth. I mean, it's going to be
S1: pretty modest in terms of what amount they're guaranteeing per
S1: year the the interest rate. And there's less less flexibility
S1: because you don't have access to the money. And there's
S1: typically high fees and surrender charges. So the other option
S1: would be you roll that 401 K into your IRA
S1: that you said is already doing well. It gives you
S1: more investment choices. Maybe you just align that new money
S1: from the 401 K into the same investment you've got,
S1: which gives you the potential for higher returns. And then
S1: you can control how conservative or aggressive you want to
S1: be in whatever investments you pick, but you don't have
S1: the money locked up like you will in the fixed annuity.
S1: So I'm just not sure. You know, unless you're just
S1: looking for ultimate safety and you're willing to give up
S1: the upside of investing in the IRA and getting a return,
S1: more like probably what you're already receiving in that IRA.
S1: Unless that's your ultimate goal. I would probably say the
S1: IRA is better because you still have access to the money.
S1: You have much more in the way of investment choices.
S1: You have the ability for higher returns, and you could
S1: just grow it, you know, for for a supplement in
S1: retirement down the road.
S9: All right.
S1: Is that helpful? Do you have any confusion around any
S1: of that though?
S8: No. You you answered the question.
S6: Thank you.
S8: Very much.
S6: For taking. You're welcome.
S1: Absolutely, Lorraine. And call back any time if we can
S1: help you further. Uh, let's go to South Florida. Hi, Paul.
S1: Go ahead.
S10: Yes. Hi. I have a can you hear me? Okay.
S1: Oh, yeah. Sure can.
S10: Oh, yeah. Yeah. Okay. I have a interest rate right
S10: now of 6.25% on $98,000 on my loan for my home.
S10: I have $47,000 in investments that I want to liquidate.
S10: And I want to throw on my mortgage. Is that
S10: a good idea? I found out that I'm only getting
S10: about 3% from the last year on that 47,000, and
S10: I want to reduce my debt on my house.
S1: Yeah. Yeah. What type of account is that? That the
S1: investments the 47,000 are in? Is that just a taxable
S1: account or is it some sort of a retirement account?
S10: Has has a Roth in it. It has cash in
S10: it and it has stocks in it.
S1: Okay. Well it wouldn't have a Roth in it. So
S1: the question is first of all, is that 47 in
S1: 1 account or is it multiple accounts.
S10: It's multiple accounts.
S1: Okay. So break that down for me. So you have
S1: a Roth. How much is in that?
S10: Uh, there's only about six, 6 or 8000. I think
S10: there's $6,000 in that.
S1: Okay.
S10: And then a bunch of money in the stocks.
S1: And what? What is that account? What is the title
S1: on that stock portion? Is that just in your name,
S1: like a taxable brokerage account?
S10: Yes it is.
S1: Okay. And are there some gains in there or losses
S1: or a mix of the two.
S10: There are not.
S1: Much.
S10: Uh, there's only $1,700 in gains. Okay. I just got, like,
S10: major stocks, that's all.
S1: Got it, got it. Well, listen, I mean, if it's
S1: not been doing well and your conviction is to pay off, uh,
S1: you know, the house or pay it down as quick
S1: as you can, then I'd say go for it and
S1: don't look back. Uh, apart from that, we could consider
S1: some other options. I've got to hit this break. Let's
S1: talk a bit more off the air. We'll be right back.
S1: Stay with us. This is faith in finance. Live. I'm
S1: Rob West here in our final segment today. We've got
S1: room for maybe a 1 to 2 more phone calls.
S1: If you have a question, something going on in your
S1: financial life, we'd love to hear from you. The number
S1: to call today to get in on the conversation is
S1: 800 525. That's 805, two five 7000. I'm going to
S1: give you those last four. 800 525 7000 to Saint Charles, Missouri. Hi, Andrew.
S1: Go ahead sir.
S11: Hi, Rob. Thank you for your show. It's very helpful
S11: information for many of us. So thank you.
S1: Thank you very much.
S11: I created an LLC with a rental property. I'm the
S11: sole member manager. It was my understanding that the tax
S11: filing could be a pass through as a disregarded entity.
S11: And so I could just add it to my 1040
S11: tax filing due every April 15th. So tax preparer is
S11: stating that I'm going to owe a quarterly tax and
S11: estimate tax. And I was hoping not to get into that. Um,
S11: is it mandatory that I file that quarterly estimate tax.
S1: Yeah. So here's my understanding on that. I'm not a CPA,
S1: but I've got a working knowledge of all this. If
S1: you're a sole member LLC, the IRS treats you as
S1: a sole proprietor for tax purposes, which means you are correct.
S1: You can file your income and expenses on schedule C
S1: with your 1040 each year. If you owe more than
S1: $1,000 in taxes for the year, then the IRS does
S1: expect you to make quarterly estimated payments. So yes, you
S1: file the 1040 annually, but quarterly payments are still required
S1: to avoid penalties. Now, it's easier than ever to just
S1: jump on their website at irs.gov. You've got an account,
S1: you know, do your ACH transfer and you're done. But
S1: if you owe more than a thousand in taxes, they
S1: are going to ding you if you don't get that
S1: quarterly payment in.
S11: Okay. Well that's very good to know. So but that
S11: answers my question. I appreciate your time.
S1: Well you're welcome sir. Thanks for your kind remarks about
S1: the program. Call anytime. Uh, let's go to Alabama. Hi, Mike.
S1: Go ahead.
S12: Hey. I am 62.5. 63in December. I'm looking to possibly
S12: retire early. Um, I a company I work for right now.
S12: I'll be there 25 years. Uh, come August, management and
S12: my values are getting further and further behind. So that
S12: is a emotional component to it. Since I have never
S12: retired before, uh, I am looking at strictly at the
S12: money and the insurance right now. And if I retire
S12: in January, I'll be taking home 1835. Uh, Social Security,
S12: I'm doing 2200, give or take, if we're on overtime
S12: or not now. So that's a $500 difference. I can
S12: make that up. I'm also self-employed. I'm speaking with a
S12: financial planner tomorrow to run a bunch of numbers, to
S12: see where we're at and what I can do. My
S12: wife's working. Uh, she'll be the insurance provider. She's still working.
S12: She's 65. So what I'm wondering is, uh, absent of
S12: the emotional component of this. What am I missing? I'm sure.
S12: I'm sure I'm missing something. Uh, something to look at. Because,
S12: like I said, I've never retired before.
S1: Yeah. Um, well, here's the reality. I mean, you need
S1: to consider is that, uh, taking, uh, Social Security early, uh,
S1: your benefits are going to be reduced by about 8%
S1: for every year you take them early. So are you
S1: factoring that in when you look at your primary insurance amount? Uh,
S1: at my ssa.gov.
S12: Yes. I actually talked with a representative, uh, at one
S12: of our Social Security offices, uh, in, in the area. And, uh,
S12: that's the number she gave because I was telling her
S12: I was looking at 2000, uh, at 20, 27in January,
S12: it'd be 1960, and June of 2027 would it'll be
S12: 2028 absent any cola. So.
S1: Yeah. Got it. Okay. Yeah. So I mean, as long
S1: as you understand that. But that's permanent. So you know,
S1: every year you could wait. And I realize it's not
S1: just financial because you said your values are misaligned. You
S1: may feel like, you know, I just need from a
S1: conviction standpoint, I need to move out from under this company.
S1: And I would say if that's true, then then you
S1: do that. Um, and then the question is, is there
S1: another way to solve for this income? You know, could
S1: you somehow delay this and maybe move to another, more
S1: full time job? Uh, is there a way to ramp
S1: up what you're doing in your, your small business? Um,
S1: but if not, and you really feel convicted that this
S1: is the way to go, then you just need to
S1: understand you are locking in that permanent reduction, and you've
S1: also got the income limit of 22,320 $22,320 for 2025.
S1: So that's the maximum you can earn from work, not
S1: investments or pension, Engine, but work before triggering a penalty,
S1: which is a dollar withheld for every $2 you earn
S1: over that $22,000 limit. Now, eventually, once you reach full
S1: retirement age, they're going to give that money back to
S1: you incrementally by adding it to your monthly benefit until
S1: you're caught up. Um, but you it will, you know,
S1: reduce what you're getting in Social Security in the meantime.
S1: But you may not be planning to earn that much,
S1: so that may not be a factor.
S12: Well, I can, uh, what the lady told me was
S12: that that, uh, that earning limit is since I'm self employed,
S12: is is after expenses. So it's not gross. It's net
S12: after expenses. So, um, you know, I could I could
S12: ramp up the business and cover that. Uh, but what
S12: I was looking for is, you know, from you and
S12: you've explained it extremely well, like you always do the, uh,
S12: the ins and outs of, you know, doing this, uh,
S12: absent of the absent of the emotional, you know, component
S12: of it. But yeah, I am done. Done. You understand?
S1: I sure do. Yeah. Yeah. So I think the only
S1: question would just be kind of run these scenarios out
S1: with this financial advisor. Um, where you say, okay, if
S1: if we're going to count on, you know, basically a
S1: little less than 1900 a month, uh, for the rest
S1: of my life with the cost of living adjustments, um,
S1: and my small business, what does that look like? And
S1: and what other assets do I have? How long is
S1: your wife going to work and begin to run some
S1: of those cash flow projections out through, you know, age
S1: 90 or 95 and just kind of understand the implications
S1: of all of that, uh, before you make that call.
S1: But it sounds like you, you feel set that you
S1: need to make the change, I get that. So the
S1: question is, just how do we solve for that income?
S1: Is it a combination of your business plus Social security early?
S1: Find a way to delay Social security. Um, and let
S1: that check continue to build, which will appreciate when we
S1: get to that. Uh, you know that higher check. But
S1: you may not be wanting to work as hard as
S1: it would require for you to fully replace the income
S1: that you've been receiving from your current job. And I
S1: get that. So you just need to factor that into
S1: the planning. But I think you're thinking through this. Well.
S12: Okay. Sounds good. I've got 165,000in a 401 K also,
S12: and I'm I'm not planning on even touching that at all.
S12: If I can do the Social Security with my personal
S12: business and get up to the $22,400 a month mark,
S12: because that's where I'm at now with virtually, you know,
S12: we're virtually debt free, with the exception of our two automobiles,
S12: which will be ones December and ones the next December.
S12: And their interest is dirt cheap.
S6: So yeah.
S12: Excellent. And then after that will be after that will
S12: be free.
S1: So okay. Great. Yeah. Now SSA is going to look
S1: at your net business income after expenses. So you're good
S1: on that. Um, so yeah, I like it. And I'm
S1: glad you're meeting with an advisor to kind of review
S1: all of this in detail. So, Mike, call anytime. Thanks
S1: for being on the program today. Uh, let's go to Chicago. Hi, Nancy.
S1: Go ahead.
S13: Hi, Rob. Thanks for taking my call. Sure. Um, so
S13: I am 40 years old, and I have three 401
S13: K accounts from previous employers just kind of sitting there. And, um,
S13: I've been talking to some financial advisors. Um, a couple
S13: of them are saying that I can now combine them
S13: into one account and my return would be like 8
S13: to 10%. But another financial advisor, um, is telling me
S13: that I can, um, he can invest in, like, a
S13: hedge fund. And I would be, um, getting between 15
S13: to 17% return.
S6: Okay.
S1: Yeah. The question, uh, is always, uh, with what amount
S1: of risk? Uh, so, you know, is there something that could,
S1: you know, and has generated 15 to 17%? 14%. Uh, yes,
S1: but hedge funds are high risk. Um, and so, you know,
S1: the that promise should raise a red flag, especially if
S1: they're offering any kind of guarantee or expectation that that
S1: should automatically be earned. Uh, anytime an advisor is making
S1: bold claims like that, I would get a second opinion,
S1: especially with your retirement, uh, money. I'd want to know
S1: what the fund is, what it invests in, what the
S1: risks are. And I'd make sure that this advisor is
S1: a fiduciary who's legally required to ask in your best interest.
S1: But bottom line is, um, promised high returns beyond the norm.
S1: And I would say that's, you know, anything above just
S1: historical averages of 7 to 9%. Um, should be a
S1: red flag number one and would typically mean, uh, that,
S1: you know, you have a high risk situation. And I'm
S1: just not sure that's the kind of situation you want
S1: to be in with your, you know, lifetime of savings
S1: from retirement.
S13: Yeah. Okay. Thank you. I just wanted to get your input.
S1: Absolutely. Nancy, we appreciate your call. Thanks for being on
S1: the program today. Well, I'll tell you, uh, great opportunity
S1: to be with you today. Some wonderful questions. We covered
S1: a lot of ground today. And listen, our heart here
S1: at Faith and finance is along with the entire team
S1: that makes this possible each day, which, by the way,
S1: today was Amy and Anthony and Omar and Jim and
S1: everybody here at Faith. By making this possible, we want
S1: to just be an encouragement to you, help you to
S1: be a wise and faithful steward of God's money. We
S1: believe you've been given a high calling as a money
S1: manager of the King of Kings, and our goal is
S1: that you can glorify God and use money as a
S1: tool to accomplish his purposes, to enjoy it along the way,
S1: but to honor the Lord in all we do. And
S1: it's such a privilege to be able to, uh, take
S1: this journey with you each afternoon, and we're grateful that
S1: you invite us into your homes and your cars and
S1: your place of work and into your story as you
S1: call and share your questions each day. Let me also
S1: just finish by inviting you to be a part of
S1: our team, because as a listener supported ministry, this doesn't
S1: happen without your generous support. The way for you to
S1: invest in this work is by becoming a faithful partner.
S1: We're actually looking for 25 more partners to reach our
S1: goal by the end of our fiscal year. That's June
S1: the 30th. So just five days from now, just go to.
S1: Partners support us at $35 a month or more, and
S1: we send to you as a thank you for issues
S1: of Faithful Steward, our beautiful rich magazine full of great articles,
S1: plus each new study and devotional two per year pro
S1: access to the Faith by app and more including ministry updates.
S1: We're looking for 25 more of you. Would you consider
S1: getting on board today? We'd certainly be grateful. Go to
S1: faithful Faith and finance a partnership between Moody Radio and Faith,
S1: and we'll see you tomorrow. Bye bye.