WEBVTT - Wisdom Over Wealth: Idolizing Status 0:00:11.760 --> 0:00:14.560 Then I saw that all toil and all skill and 0:00:14.560 --> 0:00:17.720 work come from a man's envy of his neighbor. This 0:00:17.720 --> 0:00:22.680 also is vanity and a striving after wind. Ecclesiastes four four. Hi, 0:00:22.720 --> 0:00:26.760 I'm Rob West. Ecclesiastes shows us how even good work 0:00:26.760 --> 0:00:30.040 can go wrong when driven by envy. What starts as 0:00:30.040 --> 0:00:33.840 diligence can quickly become a pursuit of status. Today we'll 0:00:33.840 --> 0:00:36.960 look at how chasing approval leaves us empty and how 0:00:36.960 --> 0:00:40.120 God invites us into something much greater. Then it's on 0:00:40.120 --> 0:00:45.200 to your calls at 855 7000. This is faith and finance. 0:00:45.240 --> 0:00:52.280 Live biblical wisdom for your financial journey. The Bible says 0:00:52.280 --> 0:00:56.040 Ecclesiastes targets all the ways we try to build meaning 0:00:56.040 --> 0:00:59.240 and purpose in life apart from God. It gives voice 0:00:59.240 --> 0:01:03.550 to the preacher, who carefully exposes the emptiness of paths 0:01:03.550 --> 0:01:07.509 like pleasure, wealth, and status. In recent weeks, we've looked 0:01:07.510 --> 0:01:11.390 at the idols of pleasure and accumulation. Today we turn 0:01:11.390 --> 0:01:14.550 to the idol of status. This one can be harder 0:01:14.550 --> 0:01:18.670 to spot. The line between excellence and envy is thin. 0:01:18.709 --> 0:01:22.550 Ecclesiastes four four says, then I saw that all toil 0:01:22.550 --> 0:01:25.230 and all skill and work come from a man's envy 0:01:25.230 --> 0:01:28.990 of his neighbor. That's a striking thought. Our motivation may 0:01:28.990 --> 0:01:32.550 not be love of the work or calling. It's often 0:01:32.550 --> 0:01:36.270 the quiet urge to compete, to keep up, to be seen. 0:01:36.590 --> 0:01:40.830 That's what status does. It whispers you're not enough unless 0:01:40.830 --> 0:01:44.830 others notice you. And without realizing it, our careers, spending, 0:01:44.830 --> 0:01:48.790 and even our generosity can become ways of proving our worth. 0:01:48.950 --> 0:01:52.190 Keeping up with the Joneses isn't just a saying, it's 0:01:52.190 --> 0:01:56.470 a way of life for many. We compare houses, vacations, schools, 0:01:56.470 --> 0:02:00.310 and the pressure to match others can lead to debt, burnout, 0:02:00.310 --> 0:02:04.430 and dissatisfaction with what God has already provided in our 0:02:04.430 --> 0:02:09.390 digital age. The pressures amplified. Social media showcases only the 0:02:09.389 --> 0:02:13.310 highlight reel, not the debt, exhaustion or stress that often 0:02:13.310 --> 0:02:17.270 accompany it. But we still scroll and wonder why not me? 0:02:17.510 --> 0:02:22.070 Ecclesiastes answers that longing with honesty. In verse eight, the 0:02:22.070 --> 0:02:25.790 preacher describes someone who works tirelessly, builds wealth, but has 0:02:25.790 --> 0:02:28.430 no one to share it with. There is no end 0:02:28.430 --> 0:02:31.589 to all his toil, and his eyes are never satisfied 0:02:31.590 --> 0:02:36.230 with riches. It's a picture of success without joy, activity 0:02:36.230 --> 0:02:40.190 without peace. A full schedule, but an empty soul. But 0:02:40.190 --> 0:02:42.709 then he offers a better way. In verse six, we 0:02:42.710 --> 0:02:46.390 read better is a handful of quietness than two hands 0:02:46.389 --> 0:02:49.990 full of toil and a striving after wind. In other words, 0:02:49.990 --> 0:02:53.510 it's better to have less with peace than more with anxiety. 0:02:53.630 --> 0:02:57.390 That's not laziness, it's wisdom. A life lived with margin 0:02:57.540 --> 0:03:02.740 grounded in God's provision. This is the invitation Ecclesiastes extends 0:03:02.780 --> 0:03:05.540 not to give up on excellence, but to anchor it 0:03:05.540 --> 0:03:08.540 in the right place. When our work flows from a 0:03:08.540 --> 0:03:11.380 love for God and a desire to serve others, it 0:03:11.380 --> 0:03:15.140 becomes a blessing, not a burden. It becomes worship. We 0:03:15.180 --> 0:03:18.180 don't need applause. We need peace. And in Christ we 0:03:18.180 --> 0:03:21.660 already have it. His approval is not based on performance. 0:03:21.660 --> 0:03:25.100 It's based on grace that frees us from striving to 0:03:25.100 --> 0:03:28.419 be seen and lets us rest in being known. Maybe 0:03:28.419 --> 0:03:32.940 that's where you are tired, overextended, wondering what you're chasing. 0:03:32.980 --> 0:03:37.140 Ecclesiastes invites you to step off the treadmill of comparison. 0:03:37.180 --> 0:03:39.940 You don't have to strive for identity. You already have it. 0:03:39.940 --> 0:03:43.380 In Jesus, we see examples of this all the time. 0:03:43.420 --> 0:03:48.180 A professional sacrifices evenings and weekends to climb the corporate ladder, 0:03:48.180 --> 0:03:51.420 only to feel lonely at the top. A family maxes 0:03:51.420 --> 0:03:54.780 out their budget to project an image while tension quietly 0:03:54.780 --> 0:03:58.450 builds at home. These aren't just stories, they're warnings. They 0:03:58.450 --> 0:04:02.530 also echo Ecclesiastes caution about what we're trading in our 0:04:02.530 --> 0:04:06.650 pursuit of more. Sometimes this isn't just about envy. It's 0:04:06.650 --> 0:04:10.770 about fear. Fear of being unseen, of being left behind. 0:04:10.770 --> 0:04:14.250 So we push harder, hoping success will quiet that fear. 0:04:14.370 --> 0:04:16.969 But only God can give the peace we're looking for. 0:04:17.330 --> 0:04:22.049 Contentment doesn't mean quitting. It means redefining success. It means 0:04:22.089 --> 0:04:25.729 anchoring your worth in something that lasts. When you stop 0:04:25.730 --> 0:04:29.969 striving in vain, your ambition gets reoriented. Your work becomes 0:04:29.970 --> 0:04:35.330 more joyful. Your giving becomes more meaningful. So today, ask yourself, 0:04:35.330 --> 0:04:38.770 who am I trying to impress? What am I really chasing? 0:04:39.010 --> 0:04:41.610 If your hands are full but your heart is empty, 0:04:41.650 --> 0:04:46.089 Ecclesiastes invites you to trade performance for peace. True success 0:04:46.130 --> 0:04:49.529 isn't about being noticed or admired. It's about being faithful 0:04:49.529 --> 0:04:52.450 with what God has given you. It's not something you 0:04:52.450 --> 0:04:55.850 have to earn or achieve. In Christ, you have nothing 0:04:55.890 --> 0:04:59.890 to prove, because in him you are deeply loved, fully known, 0:04:59.890 --> 0:05:02.890 and eternally valued. And if you want to dig deeper 0:05:02.890 --> 0:05:06.130 into these themes, we've created a new study just for you. 0:05:06.130 --> 0:05:10.530 It's called Wisdom Over Wealth, and it explores what Scripture, 0:05:10.570 --> 0:05:14.409 especially the book of Ecclesiastes, has to say about money, work, 0:05:14.610 --> 0:05:17.410 and living for what really matters. This month, when you 0:05:17.410 --> 0:05:20.770 give $35 or more to support the ministry, we'll send 0:05:20.770 --> 0:05:25.370 it to you as our thanks. Just visit giphy.com. We'll 0:05:25.370 --> 0:05:26.089 be right back. 0:05:35.010 --> 0:05:38.450 The opinions offered during this program represent the personal or 0:05:38.450 --> 0:05:43.330 professional opinions of the participants, given for informational purposes only. 0:05:43.490 --> 0:05:47.050 Any information provided is not intended to replace advice from 0:05:47.050 --> 0:05:51.850 a financial, medical, legal or other professional who understands your 0:05:51.850 --> 0:05:53.330 specific situation. 0:05:59.120 --> 0:06:00.840 Great to have you with us today on Faith and 0:06:00.839 --> 0:06:03.720 finance live. I'm Rob West. Well, it's time to take 0:06:03.720 --> 0:06:06.760 your calls and questions today. We'd love to tackle whatever 0:06:06.760 --> 0:06:09.200 you're thinking about in your financial life. That number to 0:06:09.240 --> 0:06:12.400 call today to get in on the conversation with lines 0:06:12.400 --> 0:06:19.360 open is 800 525 7000. Again, that's 800 525 7000. 0:06:19.400 --> 0:06:23.160 We'd love to consider whatever you're considering. Perhaps it's paying 0:06:23.160 --> 0:06:26.520 off some debt. Maybe you're stuck in some high interest debt. 0:06:26.520 --> 0:06:28.800 You just can't seem to shake it. Well, we can 0:06:28.800 --> 0:06:31.919 give you some thoughts moving forward. Perhaps it's your credit score. 0:06:31.960 --> 0:06:33.960 Maybe you want to try to get that up or 0:06:33.960 --> 0:06:37.320 investing for the future. Maybe it's aligning your values to 0:06:37.360 --> 0:06:40.640 your investments. You know, there's a growing movement of faith 0:06:40.680 --> 0:06:44.080 based investing that is really exciting right now with some 0:06:44.080 --> 0:06:47.440 world class products, not only in the mutual fund space, 0:06:47.440 --> 0:06:52.400 but exchange traded funds as well, which makes these investments 0:06:52.400 --> 0:06:56.150 more accessible than ever before. In fact, there's some really 0:06:56.150 --> 0:06:58.790 new developments coming. I was on a part of a 0:06:58.790 --> 0:07:03.029 meeting last week with a new startup around a robo 0:07:03.029 --> 0:07:07.349 advisor for faith based investing. That's right. Robo advisors essentially 0:07:07.350 --> 0:07:09.830 allow you to start with a very small amount. You 0:07:09.830 --> 0:07:14.270 answer some questions. An algorithm essentially builds the portfolio for 0:07:14.270 --> 0:07:17.910 you using often exchange traded funds. So you capture the 0:07:17.910 --> 0:07:21.790 broad moves of the market over time. It's very low cost, 0:07:22.190 --> 0:07:26.270 really efficient way, especially for new investors. But this solution 0:07:26.270 --> 0:07:31.030 would basically do the same thing. Smartphone driven, beautiful website, 0:07:31.030 --> 0:07:34.950 but only with faith based investments. So these these robo 0:07:34.990 --> 0:07:39.470 advisor portfolios would consist of a mix of all of 0:07:39.470 --> 0:07:43.430 the best asset managers in the faith based investing space. 0:07:43.790 --> 0:07:46.510 You could get started with as little as $50 and 0:07:46.830 --> 0:07:50.390 invest systematically. Well, that's just an example of the kind 0:07:50.390 --> 0:07:54.030 of innovation that's happening in the space that I am 0:07:54.030 --> 0:07:57.310 really excited about. So whatever you're thinking about in your 0:07:57.310 --> 0:07:59.750 financial life today, our goal to help you be a 0:07:59.790 --> 0:08:02.790 wise and faithful steward. So call right now with your 0:08:02.790 --> 0:08:07.470 questions 800 525 7000. Before we head to the phones 0:08:07.470 --> 0:08:10.750 in the news today, the soaring cost of college and 0:08:10.750 --> 0:08:15.190 unclear degree pathways are pushing many students to skip or 0:08:15.190 --> 0:08:19.270 drop out. According to a recent survey by Lotion, a 0:08:19.270 --> 0:08:25.110 higher education technology provider. Here's a breakdown 59% of current 0:08:25.110 --> 0:08:29.470 students have considered dropping out due to financial stress. That's 0:08:29.470 --> 0:08:34.710 led to a significant drop in college enrollment. Only 62.8% 0:08:34.710 --> 0:08:39.350 of 2024 high school grads enrolled in college. That's a 0:08:39.350 --> 0:08:47.230 four point decline. Since 2019, 56% of non enrollees and 53% 0:08:47.230 --> 0:08:51.420 of current students cited expense as the main deterrent. A 0:08:51.420 --> 0:08:54.540 nearly 25% of respondents who had dropped out of college 0:08:54.580 --> 0:08:57.740 say they won't return due to upfront costs and feel 0:08:58.100 --> 0:09:02.220 they're too burdened by existing debt. With college debt these days, 0:09:02.220 --> 0:09:05.620 it's a wonder that number isn't even higher. Students are 0:09:05.620 --> 0:09:09.620 also looking for alternatives and are turning to vocational training 0:09:09.620 --> 0:09:14.340 and certificates, but over half are still unaware of these options. 0:09:14.420 --> 0:09:17.020 Here's what I would say. There are other options to 0:09:17.059 --> 0:09:20.740 pay for college or a trade or vocational school other 0:09:20.740 --> 0:09:24.500 than borrowing, so keep your borrowing as low as possible. 0:09:24.500 --> 0:09:28.579 In fact, better yet, no borrowing would be my ideal 0:09:28.580 --> 0:09:32.020 for you as you think about entering college. Get creative 0:09:32.059 --> 0:09:34.939 scholarships and grants. You've got to be intentional and you've 0:09:34.940 --> 0:09:37.940 got to be really thoughtful about it. But you can 0:09:37.940 --> 0:09:41.700 earn scholarships and grants. Also working as an option on campus. 0:09:41.740 --> 0:09:44.059 You know, it won't surprise you, but I manage the 0:09:44.059 --> 0:09:47.820 Christian radio station at at my college the final year, 0:09:47.820 --> 0:09:50.650 I was also an RA, a resident assistant and had 0:09:50.650 --> 0:09:53.969 my room and board covered. My wife, well, she got 0:09:53.970 --> 0:09:58.010 over $150,000 in scholarships. They were very intentional about it. 0:09:58.010 --> 0:10:01.930 She applied probably for hundreds of scholarships. So there are 0:10:01.929 --> 0:10:07.370 ways to pay for school. Don't just default automatically to those, uh, 0:10:07.610 --> 0:10:11.770 those student loans, which I think in part has made college, uh, 0:10:11.770 --> 0:10:15.530 unaffordable for so many, specifically because they've been able to 0:10:15.570 --> 0:10:18.610 continue to raise the price of of the sticker price 0:10:18.610 --> 0:10:22.170 of the tuition because they know that students are able 0:10:22.170 --> 0:10:25.890 to basically borrow an unlimited amount, and that's allowed them 0:10:25.890 --> 0:10:31.690 to far outpace, uh, regular inflation with regard to tuition inflation. 0:10:31.690 --> 0:10:34.130 So some things to think about, especially as we get 0:10:34.130 --> 0:10:38.330 prepared to, uh, send another crop of, uh, freshmen off 0:10:38.450 --> 0:10:40.810 to begin their college experience. One of mine will be 0:10:40.809 --> 0:10:44.770 included in that. My second oldest headed off to college 0:10:44.770 --> 0:10:47.690 this fall and really excited for him. But hey, let's 0:10:47.690 --> 0:10:50.410 turn our attention to your questions today. We'll be diving 0:10:50.410 --> 0:10:52.650 into those in just a moment. The number to call 0:10:52.690 --> 0:10:57.970 to get in on the conversation today is 800 525 7000. 0:10:58.210 --> 0:11:05.250 Let's begin in chat. Chat about recently. Um is more 0:11:05.250 --> 0:11:08.370 and more of our listeners are wanting to align their 0:11:08.370 --> 0:11:13.890 values with their, uh, let's call it financial institutions. So 0:11:13.929 --> 0:11:15.929 as you think about who you do business with, and 0:11:15.929 --> 0:11:18.490 I was just talking about the opportunity for you to 0:11:18.530 --> 0:11:21.890 align your faith with your investment decisions, uh, you know, 0:11:21.929 --> 0:11:25.370 that can carry over into other aspects of your financial life. 0:11:25.370 --> 0:11:28.130 It can go beyond that. But certainly in your financial life. 0:11:28.250 --> 0:11:32.209 And what increasingly, some of our listeners are finding is that, uh, 0:11:32.210 --> 0:11:35.250 they want to do that with their banking relationship, especially 0:11:35.250 --> 0:11:38.410 with some of the bigger banks, perhaps giving money, part 0:11:38.410 --> 0:11:42.330 of the profits they're earning from your account to things that, uh, 0:11:42.330 --> 0:11:45.850 our listeners don't agree with or don't align with. And 0:11:46.090 --> 0:11:51.439 one of those opportunities is to be able to use 0:11:51.559 --> 0:11:57.559 a banking partner like Kcu consumer. Christian. Excuse me, Christian 0:11:57.559 --> 0:12:01.280 Community Credit Union and what the team at Kcu has 0:12:01.280 --> 0:12:06.920 done as of late is put a special incentive in 0:12:06.920 --> 0:12:10.720 place that they're really excited about that has allowed specifically 0:12:10.720 --> 0:12:13.800 Faith VI partners to earn a bonus when they open 0:12:13.800 --> 0:12:17.800 a checking savings or visa cash back card. Kcu has 0:12:17.800 --> 0:12:21.960 been providing Christian banking solutions to thousands of Christ followers 0:12:21.960 --> 0:12:26.400 and ministries over the last 68 years. So they've been 0:12:26.400 --> 0:12:28.880 at this a long time, and not only are they 0:12:29.040 --> 0:12:31.480 there to serve believers, but a portion of every dollar 0:12:31.480 --> 0:12:34.440 is given to Christian ministries. So if you'd like to 0:12:34.440 --> 0:12:36.960 learn about this special offer, we would just encourage you 0:12:37.320 --> 0:12:44.480 to head to faith banking. That's faith. And then when 0:12:44.480 --> 0:12:49.200 you're there, be sure to enter the code faithfully, and 0:12:49.200 --> 0:12:51.720 that will ensure that you get to take advantage of 0:12:51.720 --> 0:12:57.600 this bonus again, faithfully. All right. Looks like John is ready, 0:12:57.600 --> 0:12:59.280 but we're going to head to a break here in 0:12:59.280 --> 0:13:01.800 just a second. We did have some technical issues, but 0:13:01.800 --> 0:13:04.280 I think the team has been able to resolve those. 0:13:04.280 --> 0:13:06.400 So John, if you stay on the line as soon 0:13:06.400 --> 0:13:09.160 as we get back from this break, we will dive 0:13:09.160 --> 0:13:12.280 into your question. I know Mary is holding as well 0:13:12.280 --> 0:13:14.480 and we've got room for you. So if you'd like 0:13:14.480 --> 0:13:16.920 to jump in on the conversation today, go ahead and 0:13:16.920 --> 0:13:21.280 do that right now. When you call 800 525 7000. 0:13:21.320 --> 0:13:23.520 You know here on Faith and Finance Live. Our goal 0:13:23.520 --> 0:13:26.280 each day is that we would encourage you, equip you 0:13:26.280 --> 0:13:29.520 to live as a wise and faithful steward, ultimately for 0:13:29.520 --> 0:13:32.559 you to see God as your ultimate treasure. There is 0:13:32.559 --> 0:13:36.760 nothing in this world that will satisfy you your longings 0:13:36.760 --> 0:13:41.080 for connection and for fulfillment and your identity. All of 0:13:41.120 --> 0:13:43.600 that is found in Christ money. Well, it's a tool 0:13:43.640 --> 0:13:46.350 to accomplish God's purposes. So we want to help you 0:13:46.390 --> 0:13:49.750 get in its proper place. This is faith in finance. Live. 0:13:49.750 --> 0:13:51.829 I'm Rob West. A quick break and back with much 0:13:51.830 --> 0:13:53.309 more after this. Stay with us. 0:14:03.710 --> 0:14:05.190 And great to have you with us today on faith 0:14:05.190 --> 0:14:07.750 and finance live. I'm Rob West. Let's head right back 0:14:07.750 --> 0:14:09.790 to the phones. Chatsworth, GA. 0:14:10.110 --> 0:14:13.390 That's Georgia, by the way. John, thanks for calling today. 0:14:13.390 --> 0:14:15.110 Sorry we had some trouble getting you on. I think 0:14:15.110 --> 0:14:16.830 we've got you there now. Go ahead. Sir. 0:14:17.670 --> 0:14:21.110 Yes, sir. I was going to. I'm 60 years old. 0:14:21.110 --> 0:14:25.710 I'm disabled, and I'm wondering if money is so tight. 0:14:25.750 --> 0:14:29.230 Is it worth my time and trouble investing a few 0:14:29.230 --> 0:14:31.910 dollars a month in acorns? 0:14:32.670 --> 0:14:33.030 Hmm. 0:14:33.070 --> 0:14:33.510 Yeah. 0:14:33.830 --> 0:14:34.630 Uh, you know. 0:14:34.830 --> 0:14:36.910 I think it can be a great way. So, for 0:14:36.910 --> 0:14:40.350 the benefit of our audience, it's essentially acorns is a 0:14:40.350 --> 0:14:44.150 part of the fintech movement that is financial technology that's 0:14:44.150 --> 0:14:49.260 largely app and web based. It's essentially a Micro-investing app. 0:14:49.740 --> 0:14:53.300 That means small investments that add up over time. And 0:14:53.300 --> 0:14:56.500 what they're best known for is they're what's called roundup, 0:14:56.500 --> 0:15:01.380 where they round up your everyday purchases and invest spare change. 0:15:01.580 --> 0:15:06.860 So essentially it's an automatic savings and investing approach. So 0:15:06.860 --> 0:15:10.780 you spend you know, $1.72. And then they're going to 0:15:10.820 --> 0:15:14.580 round it up to $2 and put $0.28 in your investment. 0:15:14.620 --> 0:15:17.420 Or yeah, in your investment account. And the thing that 0:15:17.420 --> 0:15:19.260 they're kind of driving at is you don't even really 0:15:19.260 --> 0:15:22.980 feel it, but that over time these micro investments can 0:15:22.980 --> 0:15:26.860 really add up. And I like the automatic nature of it. 0:15:26.860 --> 0:15:30.100 I think especially when you're just getting started being automated 0:15:30.100 --> 0:15:32.940 with your savings and your investments is always a good thing. 0:15:33.140 --> 0:15:36.180 I like that it's a dollar cost averaging approach, meaning 0:15:36.300 --> 0:15:39.740 you're investing, you know, no matter whether the market is 0:15:39.740 --> 0:15:43.540 up or down, you're just consistently investing. That's a good strategy. 0:15:43.860 --> 0:15:48.220 It's beginner friendly. Um, now it skews younger. Just because, 0:15:48.260 --> 0:15:51.860 you know, the younger generations are more apt to use, uh, 0:15:51.900 --> 0:15:56.620 apps and websites. But, um, it is, it's beginner friendly. 0:15:56.620 --> 0:15:59.140 So there's a simple interface which makes it ideal for 0:15:59.140 --> 0:16:03.740 new investors. Uh, they use ETFs, so it's plenty diversified, 0:16:03.740 --> 0:16:05.700 which is a good thing. And then they try to 0:16:05.700 --> 0:16:09.220 bring in some education along the way. Um, it can 0:16:09.220 --> 0:16:12.020 be a little high on the price, especially for smaller 0:16:12.020 --> 0:16:15.060 balances because you're going to pay, you know, maybe $5 0:16:15.060 --> 0:16:17.980 a month, which, you know, if you only have $25 invested, 0:16:17.980 --> 0:16:21.100 that's a lot of money percentage wise. But as you 0:16:21.100 --> 0:16:24.140 build up the balance, you know that that fee becomes 0:16:24.180 --> 0:16:28.940 pretty minimal. Um, you can't choose specific investments, but that's 0:16:28.940 --> 0:16:31.860 not a bad thing as you're getting started and, um, 0:16:31.900 --> 0:16:34.500 you know, I think as you become a larger investor 0:16:34.540 --> 0:16:37.620 over time, there will be better options for you. So 0:16:37.620 --> 0:16:39.940 that's a long answer to a short question if you're 0:16:39.940 --> 0:16:43.290 just starting out. Yes, I like it. I think it 0:16:43.290 --> 0:16:46.250 can add up over time. And the key is, you know, 0:16:46.290 --> 0:16:49.890 you stay consistent, you smart, you start small and you'll 0:16:49.890 --> 0:16:53.410 have something meaningful in due time. I would be looking 0:16:53.410 --> 0:16:56.130 John along the way to see how can I do 0:16:56.130 --> 0:16:58.250 even more. I mean, it's one thing to do rounding 0:16:58.250 --> 0:17:02.410 up to the next dollar and investing a micro deposit. 0:17:02.410 --> 0:17:04.409 It's another thing for you to go back to the 0:17:04.450 --> 0:17:06.810 budget and say, what can I cut back so that 0:17:06.810 --> 0:17:11.050 I can just automatically sweep, you know, $200 or $400 0:17:11.050 --> 0:17:13.410 into my investments every month? You may not be able 0:17:13.410 --> 0:17:15.610 to do that, but if you could, you know, obviously 0:17:15.609 --> 0:17:18.370 that's going to be more meaningful over time. But at 0:17:18.369 --> 0:17:19.609 the end of the day, I think it can be 0:17:19.609 --> 0:17:21.570 a great way for you to get started. Does that 0:17:21.570 --> 0:17:22.170 make sense? 0:17:22.810 --> 0:17:25.210 Thank you so much. Absolutely does. 0:17:25.650 --> 0:17:28.209 Alrighty. Thank you for your call today, John. We appreciate 0:17:28.210 --> 0:17:32.210 you being on the program. Uh, 800 525 7000 to 0:17:32.210 --> 0:17:34.850 Twin Lakes, Wisconsin. Hi, Mary. Go ahead. 0:17:36.410 --> 0:17:43.080 Hi. Um, I owe $15,000 to IRS due to capital 0:17:43.080 --> 0:17:49.680 gain tax. I have $180,000 CD that's going to mature, 0:17:50.080 --> 0:17:54.320 and I'm wondering if it's better to take that 100, 0:17:54.359 --> 0:17:59.560 take 15 out of the 180, because the 180 was 0:17:59.560 --> 0:18:04.280 going to be used to bring our, um, uh, our 0:18:05.160 --> 0:18:10.080 mortgage down, or should I take the, um, or should 0:18:10.080 --> 0:18:15.280 I take, uh, like a small loan from the IRS 0:18:15.480 --> 0:18:20.080 and just pay off the $15,000 slower? 0:18:20.720 --> 0:18:23.400 Yeah. Well, you know, I want to get into some 0:18:23.400 --> 0:18:25.040 of the details here, but I would just say right 0:18:25.040 --> 0:18:28.720 up front, if you've got a $15,000 tax bill, that 0:18:28.720 --> 0:18:32.560 should be your biggest priority because that the IRS is 0:18:32.560 --> 0:18:37.200 the worst creditor, not mainly because of the financial implications, 0:18:37.200 --> 0:18:40.159 because when you put the interest and the penalties together, 0:18:40.160 --> 0:18:43.000 it can run you 30% a year. So that's even 0:18:43.000 --> 0:18:46.600 more than a credit card. And so we want to 0:18:46.600 --> 0:18:49.000 get that paid off. And I'd rather you do that 0:18:49.000 --> 0:18:52.440 not by borrowing. Um, but if you've got the money 0:18:52.440 --> 0:18:54.880 to do it, let's get it done. But let's talk 0:18:54.880 --> 0:18:57.199 about this idea of you taking this CD money to 0:18:57.240 --> 0:19:00.760 put into the house through a refi. What is your 0:19:00.760 --> 0:19:03.040 house worth today based on everything you know. 0:19:05.320 --> 0:19:07.280 About 350. 0:19:07.640 --> 0:19:09.439 All right. What do you owe on it currently? 0:19:11.240 --> 0:19:14.440 Oh, we just bought in October, so we're still way 0:19:14.440 --> 0:19:15.800 up there with what we owe. 0:19:16.440 --> 0:19:17.240 Okay. So what? 0:19:17.240 --> 0:19:19.680 Our mortgage is insanely high. 0:19:20.040 --> 0:19:21.120 Our mortgage is, like. 0:19:21.119 --> 0:19:28.679 26 right now. The rate is, um, I think, uh, 0:19:29.440 --> 0:19:37.320 seven point, uh, 7.6, 7.7, I think. 0:19:37.359 --> 0:19:37.800 Okay. 0:19:38.119 --> 0:19:40.190 All right. And what were you saying your way up there? 0:19:40.190 --> 0:19:41.950 What did you mean by that? You mean the balance 0:19:41.950 --> 0:19:42.710 on the mortgage? 0:19:43.470 --> 0:19:46.150 Oh, yeah. The balance on the mortgage is huge. It's 0:19:46.150 --> 0:19:50.550 over 300,000, but I don't I want to maybe reinvest 0:19:50.550 --> 0:19:55.350 that money minus the 15,000. Um, so that I could 0:19:55.350 --> 0:19:58.430 wait a little bit longer for the interest rates to 0:19:58.470 --> 0:20:01.710 drop because I don't want to refinance now, but my 0:20:01.750 --> 0:20:04.070 CD is coming to maturity now, so. 0:20:04.109 --> 0:20:04.750 I want to. 0:20:04.790 --> 0:20:07.030 Refinance in in time. 0:20:07.390 --> 0:20:09.750 Yeah. No, I think that's right. You really want to 0:20:09.830 --> 0:20:13.510 save at least a point and a half, maybe two points. 0:20:13.510 --> 0:20:17.350 So that means you'd want a rate of at least 6% 0:20:17.350 --> 0:20:20.950 or less, preferably five and a half, because you've got, 0:20:21.310 --> 0:20:24.550 you know, perhaps as much as 5% in just fees 0:20:24.550 --> 0:20:28.710 and expenses and closing costs on that refinance, so on 0:20:28.710 --> 0:20:31.670 a $300,000 loan. And I realize it might be less 0:20:31.670 --> 0:20:34.270 than that if you put some of this 180 toward it, but, 0:20:34.310 --> 0:20:38.460 you know, that's $15,000 in fees right up front. And 0:20:38.460 --> 0:20:40.420 so you've got to be able to save a point 0:20:40.420 --> 0:20:43.300 and a half to two points so that that savings 0:20:43.300 --> 0:20:45.180 from the interest, as long as you're going to stay 0:20:45.180 --> 0:20:47.580 there at least 5 to 7 years, you're going to 0:20:47.580 --> 0:20:51.540 be paid back in the form of lower interest, um, 0:20:51.660 --> 0:20:56.220 you know, by waiting. And then you'll enjoy that lower payment, 0:20:56.220 --> 0:20:58.460 that lower interest rate for the rest of the mortgage. 0:20:58.460 --> 0:21:00.700 So what I would say is you're absolutely right, now 0:21:00.700 --> 0:21:03.340 is not the time to refinance until you can get 0:21:03.380 --> 0:21:07.180 at least 6% or lower, preferably five and a half. 0:21:07.220 --> 0:21:09.780 But I would when this CD comes due, go ahead 0:21:09.780 --> 0:21:12.860 and take care of that IRS debt. And then depending 0:21:12.859 --> 0:21:15.500 on your time horizon for that money, either roll it 0:21:15.500 --> 0:21:18.939 over into another CD or keep it in high yield savings. Um, 0:21:18.940 --> 0:21:21.060 but I would get that IRS debt paid and I'd 0:21:21.100 --> 0:21:23.939 wait on refinancing. Thanks for your call, Mary. We'll be 0:21:23.940 --> 0:21:34.500 right back on Faith and Finance Live. Hey, thanks for 0:21:34.500 --> 0:21:36.580 being with us on Faith in finance. Live here on 0:21:36.580 --> 0:21:39.700 Moody Radio. Let's head right back to the phones. By 0:21:39.700 --> 0:21:41.180 the way, I do have a few lines open if 0:21:41.180 --> 0:21:43.660 you have a question today. Something going on in your 0:21:43.660 --> 0:21:49.179 financial life, call right now 805 257. And we welcome 0:21:49.180 --> 0:21:50.780 Mark to the broadcast. Go ahead sir. 0:21:52.220 --> 0:21:54.780 Hi, Rob. I just wanted to find out from you 0:21:54.820 --> 0:21:59.380 where would you place, uh, tax free municipal bonds in 0:21:59.380 --> 0:22:00.340 a portfolio? 0:22:01.660 --> 0:22:05.300 Yeah, it's a good question, mark. I mean, basically, these 0:22:05.300 --> 0:22:09.540 can be a smart fit for conservative portfolios or for 0:22:09.580 --> 0:22:14.020 that conservative portion of the portfolio or specifically for the 0:22:14.060 --> 0:22:17.379 income generating part of your portfolio, especially if you're in 0:22:17.380 --> 0:22:21.500 a higher tax bracket because they offer steady income that's 0:22:21.500 --> 0:22:25.500 usually exempt from federal and even sometimes state taxes. Uh, 0:22:25.500 --> 0:22:27.859 as you probably know, they don't grow like stocks, but 0:22:27.859 --> 0:22:31.300 they can help preserve the wealth and reduce your overall 0:22:31.300 --> 0:22:34.740 tax bill. So this is a good option for retirees 0:22:34.740 --> 0:22:39.649 or those needing lower risk, tax efficient income. So I 0:22:39.650 --> 0:22:42.090 would say, you know, that's really kind of how you 0:22:42.090 --> 0:22:45.170 want to think about it in that income generating or 0:22:45.170 --> 0:22:49.010 the more conservative kind of portion of that portfolio. So, 0:22:49.210 --> 0:22:52.649 you know, if we were, you know, if you're 70 0:22:52.650 --> 0:22:55.889 years old, uh, you know, we might say, okay, we'd 0:22:55.890 --> 0:23:00.250 want 40% somewhere between 30 and 40% to stay in, 0:23:00.290 --> 0:23:05.210 in stocks. And then we'd want, uh, you know, 60%, um, 0:23:05.210 --> 0:23:09.649 to be in, uh, bonds, uh, or maybe as much as, 0:23:09.690 --> 0:23:12.650 as 70%, depending on how conservative you want to be. 0:23:12.690 --> 0:23:16.090 And then for that bond portion, maybe you put somewhere 0:23:16.090 --> 0:23:20.050 between 25 and 50% in munis, especially if you're in 0:23:20.090 --> 0:23:22.450 a high tax bracket. Does that make sense? 0:23:23.730 --> 0:23:25.770 Yes it does. Thank you very much. I'm going to 0:23:25.770 --> 0:23:27.930 give that some consideration. Thank you. 0:23:28.170 --> 0:23:30.810 All right Mark, thanks for your call today. Uh, Chicago 0:23:30.850 --> 0:23:33.090 is where Lorraine is located. Hi, Lorraine. Go ahead. 0:23:33.930 --> 0:23:37.879 Uh, yes, I would like to ask the question about annuities. Um, 0:23:37.880 --> 0:23:42.160 I was thinking of investing in annuity, um, 19,000 into 0:23:42.200 --> 0:23:45.000 a fixed annuity. And it supposed to be an income 0:23:45.000 --> 0:23:45.680 for life. 0:23:46.440 --> 0:23:53.040 Okay, yeah. So you're wondering about, uh, with fixed annuities, essentially, uh, 0:23:53.160 --> 0:23:55.360 this is a type of investment that's going to give 0:23:55.359 --> 0:23:59.199 you a guaranteed. Um, they are complex, though, in the 0:23:59.200 --> 0:24:01.840 sense that, you know, they're not all created equal. They've 0:24:01.840 --> 0:24:06.600 got a lot of fees and expenses. And, you know, they, um, 0:24:06.640 --> 0:24:08.639 you are going to lose access to the money, at 0:24:08.680 --> 0:24:12.119 least for a period of time. Um, are you looking 0:24:12.320 --> 0:24:14.760 to just continue to grow this or are you wanting 0:24:14.760 --> 0:24:17.720 to convert it to an income stream right now? 0:24:18.680 --> 0:24:21.760 No, I'm looking to grow it. But where it's at now, 0:24:21.760 --> 0:24:24.920 it's not growing any interest. This is a 401 K 0:24:24.960 --> 0:24:27.959 from an old job, so it's not growing anything. So 0:24:27.960 --> 0:24:29.160 I want to move it. 0:24:29.680 --> 0:24:35.000 Yeah. Yeah. So you know the, the other option, which 0:24:35.000 --> 0:24:37.840 would be more in line with where I would typically go, 0:24:38.240 --> 0:24:42.760 is just to roll that old 401 into an investment account. 0:24:43.400 --> 0:24:46.160 Well back up. Do you have an existing 401 with 0:24:46.160 --> 0:24:49.040 a new employer or are you retired? What's your situation? 0:24:49.320 --> 0:24:53.080 No, I'm not retired and I don't plan on investing 0:24:53.080 --> 0:24:55.720 in the company that I'm in because I'm planning on 0:24:55.720 --> 0:24:58.720 getting back into the school system where my pension is 0:24:58.720 --> 0:24:59.800 still sitting there. 0:25:00.119 --> 0:25:02.199 Ah. Got it. Okay. And what do you have in 0:25:02.200 --> 0:25:04.560 this 401 K from the previous employer? 0:25:05.359 --> 0:25:06.840 Uh, 19,000. 0:25:07.560 --> 0:25:11.520 Okay. Got it. Yeah. And do you have an IRA 0:25:12.160 --> 0:25:13.480 Roth or traditional? 0:25:15.119 --> 0:25:20.080 Um, I do have a no, I don't, because I 0:25:20.119 --> 0:25:25.400 have a fidelity. Uh, I mean, Merrill Edge, something like that. 0:25:25.600 --> 0:25:29.400 And it's not. It's doing pretty decent, but I don't. 0:25:29.400 --> 0:25:29.760 Know. 0:25:30.040 --> 0:25:32.830 What type of account is that. Is that an IRA. 0:25:34.230 --> 0:25:37.070 Is this IRA? Yes, that's what it says. 0:25:37.390 --> 0:25:41.109 All right. And what about moving? Just rolling this into 0:25:41.109 --> 0:25:44.990 that IRA and investing it in the same things rather 0:25:44.990 --> 0:25:46.990 than the fixed annuity? What is it that's drawing you 0:25:46.990 --> 0:25:48.109 to the fixed annuity? 0:25:49.190 --> 0:25:53.470 Um, I'm a little confused because they had said, you know, 0:25:53.510 --> 0:25:56.910 income for life, but you won't start collecting that income 0:25:56.910 --> 0:26:02.230 for life until age 74. So that's why I don't 0:26:02.230 --> 0:26:04.270 think I don't I'm not going to do that. 0:26:04.670 --> 0:26:09.030 Yeah. Okay. Well, essentially an annuity is an insurance contract 0:26:09.030 --> 0:26:11.670 where you give them a lump sum of money and 0:26:11.670 --> 0:26:14.870 then in return, they promise to pay you a fixed amount, 0:26:14.869 --> 0:26:18.430 usually monthly, for a set period of time. Now you 0:26:18.430 --> 0:26:21.429 don't have to annuitize right away. You can just earn 0:26:21.430 --> 0:26:26.110 whatever rate they're providing until you're ready to annuitize. And 0:26:26.109 --> 0:26:29.310 then essentially it becomes a personal pension. So just kind 0:26:29.350 --> 0:26:32.060 of like your teachers pension, this would be a personal 0:26:32.060 --> 0:26:34.780 pension where you're turning over a lump sum of money 0:26:34.780 --> 0:26:38.460 that that again grows at a guaranteed interest rate. And 0:26:38.460 --> 0:26:41.020 then you don't lose money when the market drops, but 0:26:41.020 --> 0:26:44.060 you also won't see big gains. And then you could 0:26:44.060 --> 0:26:47.060 convert that into an income stream. Now, it wouldn't be 0:26:47.060 --> 0:26:50.139 very much with 19,000 in terms of an income stream, 0:26:50.140 --> 0:26:54.060 but it does give you that guaranteed increase. The downside 0:26:54.060 --> 0:26:55.980 is there's limited growth. I mean, it's going to be 0:26:55.980 --> 0:26:59.740 pretty modest in terms of what amount they're guaranteeing per 0:26:59.740 --> 0:27:03.540 year the the interest rate. And there's less less flexibility 0:27:03.540 --> 0:27:05.940 because you don't have access to the money. And there's 0:27:05.940 --> 0:27:09.380 typically high fees and surrender charges. So the other option 0:27:09.540 --> 0:27:13.340 would be you roll that 401 K into your IRA 0:27:13.580 --> 0:27:16.100 that you said is already doing well. It gives you 0:27:16.100 --> 0:27:19.379 more investment choices. Maybe you just align that new money 0:27:19.380 --> 0:27:22.980 from the 401 K into the same investment you've got, 0:27:23.020 --> 0:27:26.620 which gives you the potential for higher returns. And then 0:27:26.619 --> 0:27:29.780 you can control how conservative or aggressive you want to 0:27:29.780 --> 0:27:33.860 be in whatever investments you pick, but you don't have 0:27:33.859 --> 0:27:36.940 the money locked up like you will in the fixed annuity. 0:27:36.940 --> 0:27:39.500 So I'm just not sure. You know, unless you're just 0:27:39.500 --> 0:27:42.940 looking for ultimate safety and you're willing to give up 0:27:42.940 --> 0:27:47.540 the upside of investing in the IRA and getting a return, 0:27:47.540 --> 0:27:50.580 more like probably what you're already receiving in that IRA. 0:27:51.140 --> 0:27:54.140 Unless that's your ultimate goal. I would probably say the 0:27:54.140 --> 0:27:57.419 IRA is better because you still have access to the money. 0:27:57.420 --> 0:28:00.300 You have much more in the way of investment choices. 0:28:00.300 --> 0:28:03.340 You have the ability for higher returns, and you could 0:28:03.340 --> 0:28:06.140 just grow it, you know, for for a supplement in 0:28:06.140 --> 0:28:07.500 retirement down the road. 0:28:07.940 --> 0:28:08.500 All right. 0:28:08.940 --> 0:28:11.660 Is that helpful? Do you have any confusion around any 0:28:11.660 --> 0:28:12.260 of that though? 0:28:12.300 --> 0:28:15.060 No. You you answered the question. 0:28:15.460 --> 0:28:15.820 Thank you. 0:28:15.859 --> 0:28:16.300 Very much. 0:28:16.340 --> 0:28:17.500 For taking. You're welcome. 0:28:17.540 --> 0:28:20.180 Absolutely, Lorraine. And call back any time if we can 0:28:20.180 --> 0:28:22.620 help you further. Uh, let's go to South Florida. Hi, Paul. 0:28:22.660 --> 0:28:23.179 Go ahead. 0:28:24.340 --> 0:28:27.620 Yes. Hi. I have a can you hear me? Okay. 0:28:27.780 --> 0:28:28.659 Oh, yeah. Sure can. 0:28:28.770 --> 0:28:33.330 Oh, yeah. Yeah. Okay. I have a interest rate right 0:28:33.330 --> 0:28:39.090 now of 6.25% on $98,000 on my loan for my home. 0:28:39.130 --> 0:28:43.209 I have $47,000 in investments that I want to liquidate. 0:28:43.210 --> 0:28:46.570 And I want to throw on my mortgage. Is that 0:28:46.570 --> 0:28:49.210 a good idea? I found out that I'm only getting 0:28:49.210 --> 0:28:54.370 about 3% from the last year on that 47,000, and 0:28:54.370 --> 0:28:57.730 I want to reduce my debt on my house. 0:28:58.330 --> 0:29:01.650 Yeah. Yeah. What type of account is that? That the 0:29:01.650 --> 0:29:04.770 investments the 47,000 are in? Is that just a taxable 0:29:04.770 --> 0:29:07.610 account or is it some sort of a retirement account? 0:29:08.170 --> 0:29:10.690 Has has a Roth in it. It has cash in 0:29:10.690 --> 0:29:12.130 it and it has stocks in it. 0:29:12.610 --> 0:29:15.330 Okay. Well it wouldn't have a Roth in it. So 0:29:15.370 --> 0:29:18.490 the question is first of all, is that 47 in 0:29:18.490 --> 0:29:20.650 1 account or is it multiple accounts. 0:29:21.250 --> 0:29:22.610 It's multiple accounts. 0:29:22.810 --> 0:29:25.690 Okay. So break that down for me. So you have 0:29:25.690 --> 0:29:27.250 a Roth. How much is in that? 0:29:28.480 --> 0:29:32.520 Uh, there's only about six, 6 or 8000. I think 0:29:32.520 --> 0:29:34.120 there's $6,000 in that. 0:29:34.360 --> 0:29:34.880 Okay. 0:29:34.920 --> 0:29:38.360 And then a bunch of money in the stocks. 0:29:39.240 --> 0:29:42.280 And what? What is that account? What is the title 0:29:42.320 --> 0:29:45.400 on that stock portion? Is that just in your name, 0:29:45.400 --> 0:29:47.280 like a taxable brokerage account? 0:29:47.960 --> 0:29:48.800 Yes it is. 0:29:49.040 --> 0:29:52.000 Okay. And are there some gains in there or losses 0:29:52.000 --> 0:29:53.080 or a mix of the two. 0:29:53.160 --> 0:29:54.080 There are not. 0:29:54.080 --> 0:29:54.520 Much. 0:29:54.640 --> 0:29:58.600 Uh, there's only $1,700 in gains. Okay. I just got, like, 0:29:58.640 --> 0:30:00.400 major stocks, that's all. 0:30:00.440 --> 0:30:02.680 Got it, got it. Well, listen, I mean, if it's 0:30:02.680 --> 0:30:06.520 not been doing well and your conviction is to pay off, uh, 0:30:06.600 --> 0:30:08.200 you know, the house or pay it down as quick 0:30:08.200 --> 0:30:10.840 as you can, then I'd say go for it and 0:30:10.840 --> 0:30:13.720 don't look back. Uh, apart from that, we could consider 0:30:13.720 --> 0:30:16.280 some other options. I've got to hit this break. Let's 0:30:16.320 --> 0:30:18.360 talk a bit more off the air. We'll be right back. 0:30:18.400 --> 0:30:25.480 Stay with us. This is faith in finance. Live. I'm 0:30:25.480 --> 0:30:27.640 Rob West here in our final segment today. We've got 0:30:27.680 --> 0:30:30.080 room for maybe a 1 to 2 more phone calls. 0:30:30.120 --> 0:30:33.000 If you have a question, something going on in your 0:30:33.000 --> 0:30:35.480 financial life, we'd love to hear from you. The number 0:30:35.480 --> 0:30:37.720 to call today to get in on the conversation is 0:30:37.720 --> 0:30:42.880 800 525. That's 805, two five 7000. I'm going to 0:30:42.880 --> 0:30:48.440 give you those last four. 800 525 7000 to Saint Charles, Missouri. Hi, Andrew. 0:30:48.480 --> 0:30:49.200 Go ahead sir. 0:30:49.800 --> 0:30:52.960 Hi, Rob. Thank you for your show. It's very helpful 0:30:52.960 --> 0:30:55.160 information for many of us. So thank you. 0:30:55.400 --> 0:30:56.440 Thank you very much. 0:30:56.480 --> 0:31:00.000 I created an LLC with a rental property. I'm the 0:31:00.000 --> 0:31:04.320 sole member manager. It was my understanding that the tax 0:31:04.320 --> 0:31:08.160 filing could be a pass through as a disregarded entity. 0:31:08.720 --> 0:31:11.360 And so I could just add it to my 1040 0:31:11.400 --> 0:31:15.920 tax filing due every April 15th. So tax preparer is 0:31:15.920 --> 0:31:18.760 stating that I'm going to owe a quarterly tax and 0:31:18.760 --> 0:31:23.040 estimate tax. And I was hoping not to get into that. Um, 0:31:23.080 --> 0:31:26.630 is it mandatory that I file that quarterly estimate tax. 0:31:27.070 --> 0:31:29.710 Yeah. So here's my understanding on that. I'm not a CPA, 0:31:29.710 --> 0:31:32.590 but I've got a working knowledge of all this. If 0:31:32.630 --> 0:31:35.430 you're a sole member LLC, the IRS treats you as 0:31:35.430 --> 0:31:39.310 a sole proprietor for tax purposes, which means you are correct. 0:31:39.310 --> 0:31:42.430 You can file your income and expenses on schedule C 0:31:42.430 --> 0:31:45.750 with your 1040 each year. If you owe more than 0:31:45.750 --> 0:31:49.750 $1,000 in taxes for the year, then the IRS does 0:31:49.750 --> 0:31:53.870 expect you to make quarterly estimated payments. So yes, you 0:31:53.910 --> 0:31:58.430 file the 1040 annually, but quarterly payments are still required 0:31:58.430 --> 0:32:01.350 to avoid penalties. Now, it's easier than ever to just 0:32:01.350 --> 0:32:04.670 jump on their website at irs.gov. You've got an account, 0:32:04.870 --> 0:32:08.190 you know, do your ACH transfer and you're done. But 0:32:08.190 --> 0:32:10.550 if you owe more than a thousand in taxes, they 0:32:10.550 --> 0:32:12.270 are going to ding you if you don't get that 0:32:12.270 --> 0:32:13.469 quarterly payment in. 0:32:14.750 --> 0:32:19.710 Okay. Well that's very good to know. So but that 0:32:19.710 --> 0:32:21.990 answers my question. I appreciate your time. 0:32:22.150 --> 0:32:24.430 Well you're welcome sir. Thanks for your kind remarks about 0:32:24.430 --> 0:32:28.070 the program. Call anytime. Uh, let's go to Alabama. Hi, Mike. 0:32:28.070 --> 0:32:28.630 Go ahead. 0:32:29.910 --> 0:32:35.830 Hey. I am 62.5. 63in December. I'm looking to possibly 0:32:35.830 --> 0:32:41.550 retire early. Um, I a company I work for right now. 0:32:41.590 --> 0:32:45.710 I'll be there 25 years. Uh, come August, management and 0:32:45.710 --> 0:32:48.750 my values are getting further and further behind. So that 0:32:48.750 --> 0:32:52.510 is a emotional component to it. Since I have never 0:32:52.510 --> 0:32:56.550 retired before, uh, I am looking at strictly at the 0:32:56.550 --> 0:33:00.310 money and the insurance right now. And if I retire 0:33:00.310 --> 0:33:04.670 in January, I'll be taking home 1835. Uh, Social Security, 0:33:05.590 --> 0:33:08.750 I'm doing 2200, give or take, if we're on overtime 0:33:08.750 --> 0:33:11.870 or not now. So that's a $500 difference. I can 0:33:11.870 --> 0:33:15.750 make that up. I'm also self-employed. I'm speaking with a 0:33:15.750 --> 0:33:18.950 financial planner tomorrow to run a bunch of numbers, to 0:33:18.950 --> 0:33:20.710 see where we're at and what I can do. My 0:33:20.710 --> 0:33:25.020 wife's working. Uh, she'll be the insurance provider. She's still working. 0:33:25.020 --> 0:33:29.620 She's 65. So what I'm wondering is, uh, absent of 0:33:29.620 --> 0:33:34.540 the emotional component of this. What am I missing? I'm sure. 0:33:34.580 --> 0:33:38.260 I'm sure I'm missing something. Uh, something to look at. Because, 0:33:38.260 --> 0:33:39.900 like I said, I've never retired before. 0:33:40.380 --> 0:33:44.620 Yeah. Um, well, here's the reality. I mean, you need 0:33:44.620 --> 0:33:50.459 to consider is that, uh, taking, uh, Social Security early, uh, 0:33:50.460 --> 0:33:53.100 your benefits are going to be reduced by about 8% 0:33:53.100 --> 0:33:55.300 for every year you take them early. So are you 0:33:55.340 --> 0:34:00.780 factoring that in when you look at your primary insurance amount? Uh, 0:34:00.780 --> 0:34:02.300 at my ssa.gov. 0:34:03.540 --> 0:34:07.660 Yes. I actually talked with a representative, uh, at one 0:34:07.660 --> 0:34:12.540 of our Social Security offices, uh, in, in the area. And, uh, 0:34:12.700 --> 0:34:14.660 that's the number she gave because I was telling her 0:34:14.660 --> 0:34:18.940 I was looking at 2000, uh, at 20, 27in January, 0:34:18.980 --> 0:34:23.170 it'd be 1960, and June of 2027 would it'll be 0:34:23.170 --> 0:34:25.810 2028 absent any cola. So. 0:34:26.170 --> 0:34:28.730 Yeah. Got it. Okay. Yeah. So I mean, as long 0:34:28.730 --> 0:34:31.330 as you understand that. But that's permanent. So you know, 0:34:31.370 --> 0:34:33.730 every year you could wait. And I realize it's not 0:34:33.730 --> 0:34:37.089 just financial because you said your values are misaligned. You 0:34:37.090 --> 0:34:39.650 may feel like, you know, I just need from a 0:34:39.650 --> 0:34:42.810 conviction standpoint, I need to move out from under this company. 0:34:42.810 --> 0:34:44.770 And I would say if that's true, then then you 0:34:44.770 --> 0:34:48.169 do that. Um, and then the question is, is there 0:34:48.170 --> 0:34:51.370 another way to solve for this income? You know, could 0:34:51.370 --> 0:34:55.330 you somehow delay this and maybe move to another, more 0:34:55.330 --> 0:34:58.330 full time job? Uh, is there a way to ramp 0:34:58.330 --> 0:35:01.810 up what you're doing in your, your small business? Um, 0:35:01.810 --> 0:35:04.210 but if not, and you really feel convicted that this 0:35:04.210 --> 0:35:05.969 is the way to go, then you just need to 0:35:05.969 --> 0:35:09.570 understand you are locking in that permanent reduction, and you've 0:35:09.570 --> 0:35:16.730 also got the income limit of 22,320 $22,320 for 2025. 0:35:16.730 --> 0:35:20.089 So that's the maximum you can earn from work, not 0:35:20.090 --> 0:35:24.410 investments or pension, Engine, but work before triggering a penalty, 0:35:24.410 --> 0:35:27.770 which is a dollar withheld for every $2 you earn 0:35:27.969 --> 0:35:31.930 over that $22,000 limit. Now, eventually, once you reach full 0:35:31.930 --> 0:35:34.690 retirement age, they're going to give that money back to 0:35:34.690 --> 0:35:38.450 you incrementally by adding it to your monthly benefit until 0:35:38.450 --> 0:35:42.609 you're caught up. Um, but you it will, you know, 0:35:42.650 --> 0:35:45.210 reduce what you're getting in Social Security in the meantime. 0:35:45.210 --> 0:35:47.610 But you may not be planning to earn that much, 0:35:47.610 --> 0:35:49.130 so that may not be a factor. 0:35:50.410 --> 0:35:53.730 Well, I can, uh, what the lady told me was 0:35:53.730 --> 0:35:58.130 that that, uh, that earning limit is since I'm self employed, 0:35:58.130 --> 0:36:01.930 is is after expenses. So it's not gross. It's net 0:36:01.930 --> 0:36:04.810 after expenses. So, um, you know, I could I could 0:36:04.810 --> 0:36:08.450 ramp up the business and cover that. Uh, but what 0:36:08.450 --> 0:36:11.129 I was looking for is, you know, from you and 0:36:11.130 --> 0:36:14.810 you've explained it extremely well, like you always do the, uh, 0:36:15.090 --> 0:36:18.170 the ins and outs of, you know, doing this, uh, 0:36:18.170 --> 0:36:22.840 absent of the absent of the emotional, you know, component 0:36:22.840 --> 0:36:27.000 of it. But yeah, I am done. Done. You understand? 0:36:27.320 --> 0:36:30.239 I sure do. Yeah. Yeah. So I think the only 0:36:30.239 --> 0:36:32.799 question would just be kind of run these scenarios out 0:36:32.800 --> 0:36:37.400 with this financial advisor. Um, where you say, okay, if 0:36:37.400 --> 0:36:40.440 if we're going to count on, you know, basically a 0:36:40.440 --> 0:36:43.479 little less than 1900 a month, uh, for the rest 0:36:43.480 --> 0:36:47.320 of my life with the cost of living adjustments, um, 0:36:47.400 --> 0:36:50.320 and my small business, what does that look like? And 0:36:50.480 --> 0:36:52.440 and what other assets do I have? How long is 0:36:52.440 --> 0:36:54.279 your wife going to work and begin to run some 0:36:54.280 --> 0:36:57.680 of those cash flow projections out through, you know, age 0:36:57.680 --> 0:37:01.480 90 or 95 and just kind of understand the implications 0:37:01.480 --> 0:37:04.040 of all of that, uh, before you make that call. 0:37:04.040 --> 0:37:06.200 But it sounds like you, you feel set that you 0:37:06.200 --> 0:37:08.480 need to make the change, I get that. So the 0:37:08.480 --> 0:37:10.839 question is, just how do we solve for that income? 0:37:11.080 --> 0:37:15.040 Is it a combination of your business plus Social security early? 0:37:15.360 --> 0:37:18.960 Find a way to delay Social security. Um, and let 0:37:18.960 --> 0:37:21.989 that check continue to build, which will appreciate when we 0:37:21.989 --> 0:37:25.110 get to that. Uh, you know that higher check. But 0:37:25.110 --> 0:37:27.669 you may not be wanting to work as hard as 0:37:27.670 --> 0:37:30.950 it would require for you to fully replace the income 0:37:31.110 --> 0:37:33.509 that you've been receiving from your current job. And I 0:37:33.510 --> 0:37:35.669 get that. So you just need to factor that into 0:37:35.670 --> 0:37:38.590 the planning. But I think you're thinking through this. Well. 0:37:40.030 --> 0:37:44.350 Okay. Sounds good. I've got 165,000in a 401 K also, 0:37:44.350 --> 0:37:47.630 and I'm I'm not planning on even touching that at all. 0:37:47.630 --> 0:37:51.390 If I can do the Social Security with my personal 0:37:51.430 --> 0:37:55.669 business and get up to the $22,400 a month mark, 0:37:55.670 --> 0:37:58.509 because that's where I'm at now with virtually, you know, 0:37:58.550 --> 0:38:01.670 we're virtually debt free, with the exception of our two automobiles, 0:38:01.910 --> 0:38:04.910 which will be ones December and ones the next December. 0:38:04.910 --> 0:38:07.430 And their interest is dirt cheap. 0:38:07.430 --> 0:38:08.550 So yeah. 0:38:08.590 --> 0:38:10.950 Excellent. And then after that will be after that will 0:38:10.950 --> 0:38:11.350 be free. 0:38:11.350 --> 0:38:14.670 So okay. Great. Yeah. Now SSA is going to look 0:38:14.670 --> 0:38:17.509 at your net business income after expenses. So you're good 0:38:17.510 --> 0:38:20.190 on that. Um, so yeah, I like it. And I'm 0:38:20.190 --> 0:38:22.110 glad you're meeting with an advisor to kind of review 0:38:22.110 --> 0:38:24.790 all of this in detail. So, Mike, call anytime. Thanks 0:38:24.790 --> 0:38:28.030 for being on the program today. Uh, let's go to Chicago. Hi, Nancy. 0:38:28.030 --> 0:38:28.670 Go ahead. 0:38:29.750 --> 0:38:32.790 Hi, Rob. Thanks for taking my call. Sure. Um, so 0:38:32.830 --> 0:38:36.790 I am 40 years old, and I have three 401 0:38:36.790 --> 0:38:41.390 K accounts from previous employers just kind of sitting there. And, um, 0:38:41.390 --> 0:38:44.230 I've been talking to some financial advisors. Um, a couple 0:38:44.230 --> 0:38:46.390 of them are saying that I can now combine them 0:38:46.390 --> 0:38:50.239 into one account and my return would be like 8 0:38:50.239 --> 0:38:54.470 to 10%. But another financial advisor, um, is telling me 0:38:54.469 --> 0:38:57.310 that I can, um, he can invest in, like, a 0:38:57.310 --> 0:39:02.029 hedge fund. And I would be, um, getting between 15 0:39:02.030 --> 0:39:03.870 to 17% return. 0:39:04.670 --> 0:39:05.030 Okay. 0:39:05.230 --> 0:39:09.750 Yeah. The question, uh, is always, uh, with what amount 0:39:09.750 --> 0:39:14.110 of risk? Uh, so, you know, is there something that could, 0:39:14.150 --> 0:39:18.540 you know, and has generated 15 to 17%? 14%. Uh, yes, 0:39:19.020 --> 0:39:23.340 but hedge funds are high risk. Um, and so, you know, 0:39:23.380 --> 0:39:27.020 the that promise should raise a red flag, especially if 0:39:27.020 --> 0:39:32.020 they're offering any kind of guarantee or expectation that that 0:39:32.020 --> 0:39:36.380 should automatically be earned. Uh, anytime an advisor is making 0:39:36.380 --> 0:39:38.780 bold claims like that, I would get a second opinion, 0:39:38.780 --> 0:39:42.620 especially with your retirement, uh, money. I'd want to know 0:39:42.620 --> 0:39:45.100 what the fund is, what it invests in, what the 0:39:45.100 --> 0:39:47.980 risks are. And I'd make sure that this advisor is 0:39:47.980 --> 0:39:52.219 a fiduciary who's legally required to ask in your best interest. 0:39:52.219 --> 0:39:57.580 But bottom line is, um, promised high returns beyond the norm. 0:39:57.580 --> 0:40:00.460 And I would say that's, you know, anything above just 0:40:00.460 --> 0:40:05.580 historical averages of 7 to 9%. Um, should be a 0:40:05.580 --> 0:40:10.660 red flag number one and would typically mean, uh, that, 0:40:10.700 --> 0:40:13.700 you know, you have a high risk situation. And I'm 0:40:13.700 --> 0:40:15.779 just not sure that's the kind of situation you want 0:40:15.820 --> 0:40:19.010 to be in with your, you know, lifetime of savings 0:40:19.010 --> 0:40:20.009 from retirement. 0:40:20.850 --> 0:40:24.170 Yeah. Okay. Thank you. I just wanted to get your input. 0:40:24.370 --> 0:40:26.890 Absolutely. Nancy, we appreciate your call. Thanks for being on 0:40:26.890 --> 0:40:30.930 the program today. Well, I'll tell you, uh, great opportunity 0:40:30.930 --> 0:40:33.650 to be with you today. Some wonderful questions. We covered 0:40:33.650 --> 0:40:36.330 a lot of ground today. And listen, our heart here 0:40:36.330 --> 0:40:39.129 at Faith and finance is along with the entire team 0:40:39.130 --> 0:40:41.370 that makes this possible each day, which, by the way, 0:40:41.410 --> 0:40:44.370 today was Amy and Anthony and Omar and Jim and 0:40:44.370 --> 0:40:46.930 everybody here at Faith. By making this possible, we want 0:40:46.969 --> 0:40:48.730 to just be an encouragement to you, help you to 0:40:48.730 --> 0:40:51.489 be a wise and faithful steward of God's money. We 0:40:51.489 --> 0:40:53.730 believe you've been given a high calling as a money 0:40:53.730 --> 0:40:56.569 manager of the King of Kings, and our goal is 0:40:56.570 --> 0:40:59.130 that you can glorify God and use money as a 0:40:59.130 --> 0:41:03.130 tool to accomplish his purposes, to enjoy it along the way, 0:41:03.410 --> 0:41:05.890 but to honor the Lord in all we do. And 0:41:06.170 --> 0:41:08.089 it's such a privilege to be able to, uh, take 0:41:08.090 --> 0:41:10.650 this journey with you each afternoon, and we're grateful that 0:41:10.650 --> 0:41:14.129 you invite us into your homes and your cars and 0:41:14.130 --> 0:41:16.529 your place of work and into your story as you 0:41:16.570 --> 0:41:19.410 call and share your questions each day. Let me also 0:41:19.410 --> 0:41:22.410 just finish by inviting you to be a part of 0:41:22.410 --> 0:41:25.770 our team, because as a listener supported ministry, this doesn't 0:41:25.770 --> 0:41:28.770 happen without your generous support. The way for you to 0:41:28.810 --> 0:41:31.650 invest in this work is by becoming a faithful partner. 0:41:31.650 --> 0:41:35.370 We're actually looking for 25 more partners to reach our 0:41:35.370 --> 0:41:37.530 goal by the end of our fiscal year. That's June 0:41:37.530 --> 0:41:40.410 the 30th. So just five days from now, just go to. 0:41:42.450 --> 0:41:45.850 Partners support us at $35 a month or more, and 0:41:45.850 --> 0:41:48.370 we send to you as a thank you for issues 0:41:48.370 --> 0:41:53.410 of Faithful Steward, our beautiful rich magazine full of great articles, 0:41:53.410 --> 0:41:57.010 plus each new study and devotional two per year pro 0:41:57.010 --> 0:42:00.609 access to the Faith by app and more including ministry updates. 0:42:00.650 --> 0:42:02.810 We're looking for 25 more of you. Would you consider 0:42:02.810 --> 0:42:05.130 getting on board today? We'd certainly be grateful. Go to 0:42:05.170 --> 0:42:09.970 faithful Faith and finance a partnership between Moody Radio and Faith, 0:42:10.290 --> 0:42:11.890 and we'll see you tomorrow. Bye bye.