WEBVTT - Finding the Right Financial Advisor 0:00:02.960 --> 0:00:06.680 Today's faith and finance live is actually not live, so 0:00:06.680 --> 0:00:08.520 our phone lines are not open. 0:00:08.520 --> 0:00:10.920 Plans fail for the lack of counsel, but with many 0:00:10.920 --> 0:00:16.439 advisers they succeed. Proverbs 1522. Hi, I'm Rob West. When 0:00:16.440 --> 0:00:18.840 it comes to managing money wisely, many of us could 0:00:18.840 --> 0:00:21.280 use some help. But how do you know you've found 0:00:21.280 --> 0:00:25.120 the right financial advisor? Today we'll explore a few key 0:00:25.120 --> 0:00:28.480 questions you should ask when hiring someone to help with 0:00:28.480 --> 0:00:31.920 your financial decisions. Sharon Epps is here to help us 0:00:31.920 --> 0:00:35.559 navigate that process, and we have some great calls lined up. 0:00:35.560 --> 0:00:39.479 But we won't be taking your calls today because we're prerecorded. 0:00:39.479 --> 0:00:42.760 This is faith in finance. Live. Biblical wisdom for your 0:00:42.760 --> 0:00:47.560 financial decisions. Well, Sharon Epps is with us again today. 0:00:47.560 --> 0:00:50.960 She's president of Kingdom Advisors and a regular contributor here 0:00:50.960 --> 0:00:53.199 on the program. Sharon, great to have you back. 0:00:53.200 --> 0:00:54.480 It's really good to be here. 0:00:54.520 --> 0:00:58.560 You know, it may seem overwhelming to find a financial advisor, Sharon, 0:00:58.560 --> 0:01:01.550 that's a good fit for you. Yet when you're prepared 0:01:01.550 --> 0:01:05.270 to ask the right questions, the decision becomes much clearer. 0:01:05.270 --> 0:01:08.750 So you are suggesting that we think in terms of 0:01:08.790 --> 0:01:11.789 categories of questions. I'd love for you to dive into that. 0:01:11.830 --> 0:01:15.550 Well, it won't surprise you. Our first category is values alignment, 0:01:15.550 --> 0:01:18.589 and we'll cover three categories in total today. But this 0:01:18.590 --> 0:01:21.429 one is the top because it means that my advisor 0:01:21.430 --> 0:01:24.950 shares my worldview and can integrate it into his or 0:01:24.950 --> 0:01:27.950 her counsel, and I can be more confident in the 0:01:27.950 --> 0:01:31.069 advice they give me. So a key question here is 0:01:31.069 --> 0:01:35.470 what role does faith play in your financial advice? Their 0:01:35.470 --> 0:01:39.830 answer can help determine if the advisor truly integrates biblical truth. 0:01:39.950 --> 0:01:42.670 The goal is to find someone who doesn't just respect 0:01:42.670 --> 0:01:45.990 your values but shares them. There's a big difference between 0:01:45.990 --> 0:01:49.630 an advisor who's a Christian and one who actively discusses 0:01:49.630 --> 0:01:52.190 financial decision making with a biblical lens. 0:01:52.510 --> 0:01:55.150 Yeah, that is really helpful, and I would totally agree. 0:01:55.150 --> 0:01:58.420 That is the first question you want to ask. All right. 0:01:58.420 --> 0:02:02.740 What's another insightful question someone can ask to better understand 0:02:02.740 --> 0:02:03.860 values alignment? 0:02:03.860 --> 0:02:08.139 Well, ask the advisor their definition of financial success. You 0:02:08.139 --> 0:02:11.380 want to listen for whether they're looking only for returns, 0:02:11.380 --> 0:02:15.020 or if they're considering how they might encourage your stewardship, generosity, 0:02:15.020 --> 0:02:18.260 and faithfulness. They should understand that money is a tool 0:02:18.260 --> 0:02:21.739 and not a goal, and that biblical alignment brings clarity 0:02:21.740 --> 0:02:23.980 and peace in the planning process. 0:02:23.980 --> 0:02:26.900 That's so good. And of course, it's good stewardship to 0:02:26.940 --> 0:02:31.660 consider performance. So let's shift to competency. Is that another 0:02:31.660 --> 0:02:32.739 major category? 0:02:32.780 --> 0:02:35.260 Absolutely. That's the second one. We want to be sure 0:02:35.260 --> 0:02:39.180 that our prospective advisor is technically competent. And we want 0:02:39.220 --> 0:02:43.260 to know that they've got industry designations and experience serving 0:02:43.260 --> 0:02:46.780 clients like you. So as you ask them about their 0:02:46.780 --> 0:02:51.180 certification and years of experience, consider a key question like, 0:02:51.380 --> 0:02:54.220 tell me about clients that you serve who are similar 0:02:54.220 --> 0:02:57.980 to me and how you've served them. And without naming names, 0:02:57.980 --> 0:03:00.820 those advisors should be able to share stories of impact 0:03:00.820 --> 0:03:02.060 with similar clients. 0:03:02.300 --> 0:03:04.180 I love that this is so helpful. All right, what's 0:03:04.180 --> 0:03:05.260 the third category? 0:03:05.380 --> 0:03:08.940 Well, the third category is process and compensation. The advisor 0:03:08.980 --> 0:03:14.020 should clearly explain the ways they're compensated confidently. Ask them, hey, 0:03:14.020 --> 0:03:15.500 I want to be sure I'm clear on the ways 0:03:15.500 --> 0:03:17.900 you make money. Could you walk me through the fees 0:03:17.900 --> 0:03:21.180 and commissions for a client like me? Not only are 0:03:21.180 --> 0:03:24.780 advisors required to disclose this, excellent advisors want to make 0:03:24.820 --> 0:03:27.580 sure that you really understand. You also want to be 0:03:27.580 --> 0:03:30.980 clear on their process. So the key question is what's 0:03:30.980 --> 0:03:34.220 your process for creating a financial plan. And they should 0:03:34.220 --> 0:03:36.620 be able to outline a clear step by step approach 0:03:36.620 --> 0:03:39.860 with the timeline and information required and the fees. 0:03:39.900 --> 0:03:41.980 Yeah. And I think kind of the overriding theme here 0:03:41.980 --> 0:03:44.380 is you want an advisor with the heart of a 0:03:44.380 --> 0:03:48.380 teacher who wants to lead with making sure you're understanding 0:03:48.380 --> 0:03:49.500 everything it is. 0:03:49.540 --> 0:03:50.020 Yes. 0:03:50.180 --> 0:03:53.340 So if listeners, Sharon, want to find someone who meets 0:03:53.340 --> 0:03:56.610 these standards and perhaps a few more. Where do they go? 0:03:56.650 --> 0:04:00.370 Well, we would encourage you to go to faith.com and 0:04:00.370 --> 0:04:04.330 click on Find a Professional. You'll find Certified Kingdom advisors 0:04:04.330 --> 0:04:07.890 who have been vetted for integrity, technical excellence and their 0:04:07.890 --> 0:04:11.010 biblical worldview. We just talked about. You'll also find a 0:04:11.050 --> 0:04:15.530 downloadable PDF that has some ideas for advisor interview questions. 0:04:15.530 --> 0:04:19.450 Whether you're getting started or you're actually looking to reevaluate 0:04:19.450 --> 0:04:23.089 the advisor you have. You can rehire your advisor every year, 0:04:23.089 --> 0:04:25.570 by the way. It's a great place to begin. 0:04:25.610 --> 0:04:28.330 That is so good. Again, faith com just click find 0:04:28.330 --> 0:04:31.730 a professional and Sharon they'll be able to find that 0:04:31.730 --> 0:04:35.610 really cover the gamut in terms of the financial decision 0:04:35.650 --> 0:04:36.810 making categories. 0:04:36.850 --> 0:04:39.810 Yes they look at different types of financial professionals as 0:04:39.810 --> 0:04:41.890 well as those that are located close to you. 0:04:41.930 --> 0:04:45.170 Sharon, as you think about and you walk alongside so 0:04:45.170 --> 0:04:48.410 many of these advisors, what's the big change that they 0:04:48.410 --> 0:04:51.330 go through as they explore God's Word in the training? 0:04:51.370 --> 0:04:53.730 Well, the biggest thing is they begin to feel the 0:04:53.839 --> 0:04:58.760 weight of stewardship of their responsibility, of what God's given them, 0:04:58.760 --> 0:05:01.560 and even what the clients have, and helping guide them 0:05:01.560 --> 0:05:03.039 to make an eternal impact. 0:05:03.040 --> 0:05:06.839 It makes all the difference, folks. Find a C in 0:05:06.839 --> 0:05:11.440 your area when you go to faith. That's faith. Com 0:05:11.440 --> 0:05:13.800 and just click Find a Professional at the top of 0:05:13.800 --> 0:05:15.560 the page. Sharon, thanks for stopping by. 0:05:15.600 --> 0:05:16.440 Great to be here. 0:05:16.800 --> 0:05:18.320 Well folks, we're going to head to a break. But 0:05:18.320 --> 0:05:21.040 let me remind you, we're out of the studio today. 0:05:21.080 --> 0:05:23.760 Our team is not here, so don't call in. But 0:05:23.760 --> 0:05:26.320 much more to come just around the corner on faith 0:05:26.320 --> 0:05:36.000 and finance live. Stick around. Thanks for joining us today 0:05:36.000 --> 0:05:38.560 on Faith in Finance live. I'm Rob West. We're so 0:05:38.560 --> 0:05:41.080 glad you're along with us today. Now we're away from 0:05:41.080 --> 0:05:43.120 the studio, so don't call in. But in just a 0:05:43.120 --> 0:05:46.279 moment we'll be taking some questions that we lined up 0:05:46.279 --> 0:05:48.920 in advance. You won't want to miss those, but first, 0:05:48.960 --> 0:05:51.280 let's tackle a couple of emails. These come into us 0:05:51.279 --> 0:05:57.830 regularly at Moody Radio.com. This first question comes to us 0:05:57.830 --> 0:06:00.750 by way of Hannah. She writes, we recently sold our 0:06:00.750 --> 0:06:03.270 house for a good profit and we're wondering how to 0:06:03.310 --> 0:06:05.669 tithe on it. Do we tithe on the full amount 0:06:05.670 --> 0:06:09.390 we received or only what goes above the initial price 0:06:09.550 --> 0:06:12.950 and interest we paid? You would tithe on the difference 0:06:12.950 --> 0:06:17.790 between the sale price, Hannah, and the initial purchase price. 0:06:18.350 --> 0:06:22.430 So you don't have to look at anything else other 0:06:22.430 --> 0:06:26.349 than what is that true increase in the value of 0:06:26.350 --> 0:06:29.270 the property. Because when we're giving a tithe, it is 0:06:29.270 --> 0:06:32.670 based on the increase, the profit. So no matter what 0:06:32.710 --> 0:06:34.990 asset it is, whether it's a stock or a piece 0:06:34.990 --> 0:06:37.910 of real estate, it's simply the difference between the sale 0:06:37.910 --> 0:06:42.150 price and the original purchase price. That increase, then you 0:06:42.150 --> 0:06:44.710 would apply a 10% tithe and then give that to 0:06:44.750 --> 0:06:47.470 your local church. I think that's a great idea. This 0:06:47.470 --> 0:06:49.750 next one comes to us from Karen. She writes, I 0:06:49.750 --> 0:06:52.510 have a 401 K and I'm wondering how I can 0:06:52.510 --> 0:06:55.310 invest according to my values with the options that are 0:06:55.310 --> 0:06:57.990 available in it. It seems like the only options are 0:06:57.990 --> 0:07:01.110 big companies that I'd rather not be invested in. Do 0:07:01.110 --> 0:07:05.029 you have any suggestions? Well, yeah. If you don't find 0:07:05.070 --> 0:07:08.550 one of the faith based investing fund families in your 0:07:08.589 --> 0:07:12.750 401 K, now I would contact your 401 K custodian 0:07:12.750 --> 0:07:17.350 and tell them that you're interested in values aligned investing 0:07:17.550 --> 0:07:21.110 and that you'd like to suggest the addition of some 0:07:21.110 --> 0:07:25.350 of these fund families like Praxis, like Timothy plan like 0:07:25.390 --> 0:07:30.190 Eventide like one ascent or Guidestone. It may not happen 0:07:30.190 --> 0:07:33.470 right away, but as they start to hear from more 0:07:33.470 --> 0:07:37.750 and more of their 401 K account holders, they're eventually 0:07:37.750 --> 0:07:41.710 going to add those, and they're always reevaluating what new 0:07:41.710 --> 0:07:43.670 funds need to be in the plan. So just because 0:07:43.670 --> 0:07:46.150 they're not in there now doesn't mean they won't be 0:07:46.150 --> 0:07:50.460 in there next year. And so I would reach out first. Second. 0:07:50.460 --> 0:07:53.380 You can also see if you have something called a 0:07:53.380 --> 0:07:57.100 brokerage window. That's just simply the opportunity for you to 0:07:57.140 --> 0:08:01.420 invest beyond the menu of choices in your 401 K. 0:08:01.740 --> 0:08:06.380 In anything that's available through that custodian. And odds are 0:08:06.420 --> 0:08:08.540 if it's a Fidelity or Schwab or one of the 0:08:08.540 --> 0:08:11.260 big brokerage firms, you'd be able to get access to 0:08:11.300 --> 0:08:14.580 one of the faith based investing companies. The third option 0:08:14.580 --> 0:08:18.060 just put enough in your 401 K to get the match, 0:08:18.300 --> 0:08:21.420 and then put the rest up to the annual contribution 0:08:21.420 --> 0:08:24.620 limit in a Roth IRA or a traditional IRA. And 0:08:24.620 --> 0:08:27.500 then you most certainly could invest in the faith based 0:08:27.500 --> 0:08:30.780 investing fund families when you do that. All right. Let's 0:08:30.780 --> 0:08:33.380 get to those phone calls that we lined up in 0:08:33.380 --> 0:08:36.820 advance right now. We're going to begin in Florida today. Hi, Chris. 0:08:36.860 --> 0:08:37.420 Go ahead. 0:08:37.740 --> 0:08:42.020 My question, Rob, is I'm retired, living on Social Security. 0:08:42.020 --> 0:08:46.380 I have no debt. My all my expenses are paid 0:08:46.380 --> 0:08:53.050 off whenever I have a significant project that I'm only 0:08:53.090 --> 0:08:57.090 pulling in about 1900 a month on Social Security. So 0:08:57.090 --> 0:09:01.450 whenever I have a project for the house or whatever, 0:09:01.490 --> 0:09:04.730 I pull it out of my. Um, I believe it's 0:09:04.730 --> 0:09:10.090 an IRA that that my broker has set up for me. And, uh, 0:09:10.290 --> 0:09:15.410 what I'm wondering from your expertise is, is that, um, 0:09:15.450 --> 0:09:19.210 is that the best way to go about financing these 0:09:19.210 --> 0:09:21.690 projects so that I can remain debt free and I 0:09:21.690 --> 0:09:26.689 don't have to finance anything and incur any interest? 0:09:27.090 --> 0:09:29.850 Yeah, it's a great question. And let me just say, 0:09:29.890 --> 0:09:32.089 first of all, Chris, kudos to you. You're in a 0:09:32.090 --> 0:09:35.970 strong position being debt free. You know that IRA is 0:09:35.970 --> 0:09:39.130 obviously money you worked hard to set aside during your 0:09:39.130 --> 0:09:43.609 working years. Now you're retired 69, living on Social Security. 0:09:43.610 --> 0:09:45.650 So that's what it's there for. The the only thing 0:09:45.650 --> 0:09:47.400 we're going to want to keep an eye on is 0:09:47.400 --> 0:09:51.400 just what that withdrawal rate looks like. To ensure that 0:09:51.400 --> 0:09:54.640 we can keep this IRA around for as long as possible, 0:09:54.679 --> 0:09:58.439 to the extent that Social Security alone is not enough 0:09:58.760 --> 0:10:02.480 to cover your living expenses, especially as some of those 0:10:02.480 --> 0:10:05.800 expenses can grow in the future, namely around long term 0:10:05.800 --> 0:10:10.280 care and medical related expenses. So what what is your 0:10:10.280 --> 0:10:13.880 balance roughly on that IRA? And then if you look 0:10:13.880 --> 0:10:16.280 at the last 12 months, how much have you pulled out? 0:10:17.000 --> 0:10:21.240 Um, in the last 12 months, uh, just I have 0:10:21.240 --> 0:10:26.920 not I took a recent distribution of a taxed distribution 0:10:26.960 --> 0:10:33.480 of 25,000 out, and that was it for this current 0:10:33.480 --> 0:10:40.000 calendar year. Um, before that, I've still got, uh, half. 0:10:40.080 --> 0:10:44.880 I've still got about 5000 in a savings account. That 0:10:44.880 --> 0:10:49.590 is a remnant of the 10,000 I withdrew in 2024. 0:10:50.030 --> 0:10:54.350 So I'm very frugal with my money, and I kept 0:10:54.350 --> 0:11:00.070 that distribution from 2024 around in case I came up 0:11:00.070 --> 0:11:04.709 short or got hit with any unbudgeted expenses that would 0:11:05.870 --> 0:11:08.710 put me over the over the ability to pay with 0:11:08.750 --> 0:11:11.470 the 1900 a month Social Security. 0:11:11.710 --> 0:11:14.309 Got it. Yeah. That's great. Glad you're you're doing that. 0:11:14.309 --> 0:11:16.510 It sounds like you're being really judicious about how you're 0:11:16.510 --> 0:11:19.990 using that money. The 25,000 that you mentioned. Is that 0:11:20.030 --> 0:11:22.190 what's needed but you haven't taken, or have you already 0:11:22.230 --> 0:11:23.230 taken that as well? 0:11:23.830 --> 0:11:27.510 I took that out, uh, about a month ago, and 0:11:27.510 --> 0:11:31.350 that was taxed. Whenever my broker sends me the money, 0:11:31.390 --> 0:11:36.310 he withdraws 10% in tax off of that right off 0:11:36.309 --> 0:11:36.990 the top. 0:11:37.110 --> 0:11:39.670 Sure. Yeah, that's a good practice that way. That's a 0:11:39.710 --> 0:11:42.230 head start on what you'll ultimately owe. Even if that's 0:11:42.230 --> 0:11:45.270 not enough, at least you've got something that you know 0:11:45.309 --> 0:11:48.590 is offsetting that tax liability. What is the balance on 0:11:48.630 --> 0:11:49.750 that IRA roughly. 0:11:50.429 --> 0:11:54.670 Before all this market turmoil started up? I think it 0:11:54.670 --> 0:11:57.710 was right around the beginning of the year. It was 0:11:57.710 --> 0:12:01.870 about 1,000,002. And honestly, Rob, I hate to sound like 0:12:01.870 --> 0:12:05.830 a chicken, but after my broker called me to congratulate 0:12:05.830 --> 0:12:10.150 me with going over the million mark, I. Lately I 0:12:10.190 --> 0:12:13.870 have not looked at the account. It was down slightly 0:12:13.870 --> 0:12:18.990 in the first quarter, but I haven't actually looked at it. 0:12:18.990 --> 0:12:21.390 Probably in several weeks. 0:12:21.870 --> 0:12:24.550 Yeah. Good. Well, that's probably a good thing, because the 0:12:24.550 --> 0:12:26.189 last thing you'd want to do would be to react 0:12:26.190 --> 0:12:28.350 emotionally and call him and say, hey, let's get out 0:12:28.350 --> 0:12:31.150 of the market. And so I'm glad you have an 0:12:31.150 --> 0:12:33.830 advisor overseeing it, because that, you know, makes sure that 0:12:33.830 --> 0:12:37.270 we're not acting on an emotional basis. We've got hopefully 0:12:37.270 --> 0:12:40.990 a rules based, you know, approach to investment management. Sounds 0:12:40.990 --> 0:12:43.020 like he's doing a good job at grew you know, 0:12:43.059 --> 0:12:45.980 from that $1 million mark to now 1.2. I'm sure 0:12:45.980 --> 0:12:48.380 it's down. You know, it may be back close to 0:12:48.380 --> 0:12:50.580 the million, depending on kind of what your allocation is, 0:12:50.580 --> 0:12:52.700 but I'm okay with that. You know, I think just 0:12:52.700 --> 0:12:54.900 in terms of a rule of thumb, if you were 0:12:54.900 --> 0:12:57.860 to think about limiting and you've, you've, you know, gone 0:12:57.860 --> 0:13:01.020 far under this, which is great limiting to your annual 0:13:01.020 --> 0:13:04.579 distributions to, you know, no more than 4% a year, 0:13:04.580 --> 0:13:08.100 which would be on your case, 48,000 on the 1.2, 0:13:08.140 --> 0:13:10.460 obviously a little less than that if the balance has 0:13:10.460 --> 0:13:12.780 come down. But as long as you're staying under that, 0:13:12.780 --> 0:13:15.540 that's why this money is there. I think you're taking 0:13:15.540 --> 0:13:18.500 out an appropriate amount. So it should continue to grow 0:13:18.500 --> 0:13:21.900 despite these withdrawals. And the last thing we'd want to 0:13:21.900 --> 0:13:25.020 do is take on debt, you know, and pay interest 0:13:25.020 --> 0:13:27.860 when you've got this money sitting there for this purpose. So, 0:13:28.059 --> 0:13:29.860 you know, I think you're in great shape. I'd say 0:13:29.860 --> 0:13:32.740 continue to do this. And given how little you're pulling out, 0:13:32.740 --> 0:13:34.660 I think you've got, you know, even a bit more 0:13:34.660 --> 0:13:38.580 room there, um, for you to do other things, you know, 0:13:38.620 --> 0:13:40.500 if you wanted to do some work on the house 0:13:40.500 --> 0:13:42.450 or take a trip or something like that. 0:13:43.050 --> 0:13:45.090 You nailed it, Rob. I was going to ask you 0:13:45.090 --> 0:13:50.930 about that because that after the current project is done with, um, 0:13:50.929 --> 0:13:55.290 I had planned on getting back on track with home renovation, 0:13:55.570 --> 0:13:58.450 and I'm very judicious with that. A lot of people 0:13:58.730 --> 0:14:01.770 from my church, we have a lot of, uh, craft 0:14:01.809 --> 0:14:07.810 type people, carpenters and and builders stuff. So they normally, uh, 0:14:07.809 --> 0:14:08.850 are my go to. 0:14:09.090 --> 0:14:11.770 I love it. One other thing. Once you're 70.5, I 0:14:11.770 --> 0:14:14.130 understand you're not there yet. That'll be the time for 0:14:14.130 --> 0:14:17.370 you to look at doing qualified charitable distributions. Any giving 0:14:17.370 --> 0:14:20.250 you're doing at a cash you ought to replace with 0:14:20.250 --> 0:14:23.530 qualified charitable distributions. And then you can get that money 0:14:23.530 --> 0:14:26.410 out without paying any tax on it. Uh, hang on 0:14:26.450 --> 0:14:27.930 the line. I want to send you a copy of 0:14:27.930 --> 0:14:35.850 our magazine. We'll be right back. So thankful to have 0:14:35.850 --> 0:14:37.930 you with us today on faith and finance live. I'm 0:14:37.930 --> 0:14:40.640 Rob West, your host. Now our team is away from 0:14:40.640 --> 0:14:43.720 the studio today, so don't call in. But we lined 0:14:43.720 --> 0:14:46.200 up some questions in advance that I know will be 0:14:46.200 --> 0:14:48.600 helpful to you. Had a great call there just a 0:14:48.600 --> 0:14:50.960 moment ago, and we were able to finish up off 0:14:50.960 --> 0:14:54.360 the air a bit more as we talked with the 0:14:54.360 --> 0:14:57.440 previous caller, just about, you know, how we can manage 0:14:57.440 --> 0:15:01.880 the money that we have in that retirement season of life. Uh, 0:15:01.880 --> 0:15:04.240 you know, as we as we chatted with Chris, I mean, 0:15:04.240 --> 0:15:07.480 he's in a really strong position, really being judicious about 0:15:07.480 --> 0:15:09.720 what he takes out of his IRA. But that's what 0:15:09.720 --> 0:15:12.120 that money is there for. Now, I hit on something 0:15:12.120 --> 0:15:13.720 right there at the tail end that I want to 0:15:13.720 --> 0:15:15.920 make sure to circle back on, because I think a 0:15:15.960 --> 0:15:19.120 lot of people miss this, and that's the opportunity once 0:15:19.120 --> 0:15:23.920 you're 70.5, to do what's called a qualified charitable distribution, 0:15:24.080 --> 0:15:26.760 this is specifically money coming out of an IRA. Can't 0:15:26.760 --> 0:15:28.760 be a 401 K. It's got to be an individual 0:15:28.760 --> 0:15:32.680 retirement account in a traditional, um, but you can take 0:15:32.680 --> 0:15:35.240 money out of that, which normally, you know, the money 0:15:35.240 --> 0:15:38.920 goes into that traditional IRA either by way of rollover 0:15:38.960 --> 0:15:42.920 or direct contributions pre-tax. So you remember, the money that 0:15:42.920 --> 0:15:46.200 went into that account was excluded from your federal and 0:15:46.200 --> 0:15:49.520 state taxes. So you got the deduction on it. And 0:15:49.520 --> 0:15:52.960 then normally you pay tax on it as income when 0:15:52.960 --> 0:15:55.360 it comes out. The only way to get the money 0:15:55.360 --> 0:15:58.080 out tax free, which means it went in without paying 0:15:58.080 --> 0:16:00.520 any tax on it. It's also coming out without any 0:16:00.520 --> 0:16:04.800 tax is when it goes direct to charity or your church. 0:16:05.160 --> 0:16:09.520 And when you use that qualified charitable distribution, you're getting 0:16:09.520 --> 0:16:12.840 that money out of that IRA and you're never paying tax, 0:16:12.840 --> 0:16:16.800 which means you get to satisfy your required minimum if 0:16:16.800 --> 0:16:19.400 you have it. Or at the very least, you get 0:16:19.400 --> 0:16:22.480 to hang on to cash you've already paid tax on 0:16:22.480 --> 0:16:25.440 in your checking or savings account and just have that 0:16:25.440 --> 0:16:29.640 money go straight from your IRA to that ministry or charity. 0:16:29.880 --> 0:16:33.320 And it's a huge opportunity because now you've got more 0:16:33.320 --> 0:16:35.800 going into the kingdom because there was never any tax 0:16:35.840 --> 0:16:38.510 paid on it, which is just an enormous blessing. And 0:16:38.510 --> 0:16:40.990 so a lot of folks will just say, you know what? 0:16:40.990 --> 0:16:44.390 I'm giving X amount for my checking account every month 0:16:44.390 --> 0:16:47.030 to my church, or I might be sending a systematic 0:16:47.030 --> 0:16:50.110 contribution here to Faith Fi, but instead I'm going to 0:16:50.110 --> 0:16:53.350 have that money instead of going out of after tax accounts, 0:16:53.350 --> 0:16:56.110 I'm going to come out of a pre-tax account through 0:16:56.110 --> 0:17:00.150 the qualified charitable distribution and go straight to that ministry 0:17:00.670 --> 0:17:03.310 and never pay any tax on it. What an opportunity. 0:17:03.310 --> 0:17:06.189 So don't miss that. If you're 70.5, you can do 0:17:06.230 --> 0:17:10.390 up to $105,000 out of an IRA through a qualified 0:17:10.390 --> 0:17:14.950 charitable distribution. You just call your broker or your broker dealer, 0:17:14.950 --> 0:17:18.510 like Schwab or Fidelity or Edward Jones or Merrill Lynch, 0:17:18.510 --> 0:17:21.510 whoever you have your IRA with, and just say, I 0:17:21.510 --> 0:17:24.030 want to do a qualified charitable distribution. They'll send a 0:17:24.030 --> 0:17:28.070 check straight to the ministry. Let them ministry know it's coming, 0:17:28.190 --> 0:17:31.190 and then you can report that on your 1040 that yes, 0:17:31.190 --> 0:17:33.950 it was a withdrawal, but it gets offset on the 0:17:33.950 --> 0:17:37.340 line below it because it was a qualified charitable distribution. 0:17:37.340 --> 0:17:40.740 And so no tax is paid even though the withdrawal occurred. 0:17:40.740 --> 0:17:44.900 So don't miss that. It's a phenomenal opportunity for you 0:17:45.020 --> 0:17:47.899 that are in that fourth quarter of life. You've got 0:17:47.940 --> 0:17:51.500 IRA money and you want to give generously. All right. 0:17:51.500 --> 0:17:54.500 Let's get back to the phones. Let's go to Maryland. Hi, Ingrid. 0:17:54.500 --> 0:17:56.260 Thanks for your patience. How can I help you? 0:17:56.940 --> 0:18:02.300 Oh, yes. I would like to know, um, I have, um, 0:18:03.500 --> 0:18:08.900 a backup guard is, um, from a store here in Frederick, Maryland, 0:18:10.020 --> 0:18:17.859 and it's like seven 700, close to a 800. And 0:18:17.900 --> 0:18:21.300 I also have to pay all the bills. Like my 0:18:21.859 --> 0:18:24.100 cell phone on cricket. 0:18:24.380 --> 0:18:24.979 Yes, ma'am. 0:18:26.020 --> 0:18:33.179 And, um, I also have to pay, um, Xfinity for 0:18:33.220 --> 0:18:36.169 for my, um. Um. 0:18:36.890 --> 0:18:38.970 Yeah. For your cable or your internet. 0:18:39.890 --> 0:18:45.050 For the internet, for the internet. And I also have 0:18:45.210 --> 0:18:53.689 other bills like the Potomac Edison. I'm very behind on that. Um. 0:18:54.609 --> 0:18:55.090 Okay. 0:18:55.290 --> 0:19:00.130 I have to pay $172.60. 0:19:00.369 --> 0:19:01.010 Yes, ma'am. 0:19:02.050 --> 0:19:06.090 And I have a water bill that is outstanding, too. 0:19:06.170 --> 0:19:10.810 And it's $246.28. 0:19:11.090 --> 0:19:13.889 And, Ingrid, are you just having trouble kind of making 0:19:13.890 --> 0:19:16.530 all of that work with the limited income that you have? 0:19:17.650 --> 0:19:18.290 Yes. 0:19:18.410 --> 0:19:19.609 Yeah. Very good. 0:19:19.650 --> 0:19:25.050 Because I only have I only have Social Security SSI. Uh, 0:19:25.050 --> 0:19:29.770 and that is $967 per month. Per month? 0:19:30.010 --> 0:19:34.449 Yes, ma'am. Okay. Yeah, Listen, I know that can be 0:19:34.450 --> 0:19:37.010 a real challenge. And I appreciate your call today, and 0:19:37.050 --> 0:19:40.010 I'd like to help with this. Um, here's what I'd 0:19:40.010 --> 0:19:42.730 like to do if you'd be willing to get on 0:19:42.730 --> 0:19:48.250 the phone, um, with one of our certified Christian financial counselors. 0:19:48.450 --> 0:19:50.850 These are men and women who have been trained to 0:19:50.890 --> 0:19:55.290 come alongside God's people and help them, uh, to manage 0:19:55.290 --> 0:19:59.690 God's money. And they're very adept at situations like this 0:19:59.690 --> 0:20:02.650 where there's limited resources and you're just trying to to 0:20:02.690 --> 0:20:05.850 balance it all. And perhaps if, if you'd be willing, 0:20:05.850 --> 0:20:08.169 they could help you look at all the look at 0:20:08.170 --> 0:20:10.530 the income you have, look at the bills you have 0:20:10.530 --> 0:20:13.770 and develop a plan for how you cover each of 0:20:13.770 --> 0:20:16.810 these bills throughout the month. Now, the extent to which 0:20:16.970 --> 0:20:19.290 there's just not enough money there to make it go around, 0:20:19.290 --> 0:20:21.929 we're either going to need to try to cut back 0:20:22.170 --> 0:20:25.369 or eliminate some of those expenses, or find a way 0:20:25.369 --> 0:20:27.929 to get some additional income. That may not be possible, 0:20:27.930 --> 0:20:30.770 but it's it's the other side of the equation. But 0:20:30.810 --> 0:20:33.360 in either case, they can be an encouragement to you, 0:20:33.359 --> 0:20:36.480 pray with you, and just look at the overall situation 0:20:36.480 --> 0:20:39.560 and help you figure out how to manage it. So, uh, 0:20:39.560 --> 0:20:41.640 would that be helpful for me to have somebody give 0:20:41.640 --> 0:20:44.560 you a call that could help you navigate all of this? 0:20:45.480 --> 0:20:46.560 Yes, please. 0:20:46.800 --> 0:20:49.080 All right. Very good. Listen, Ingrid, there's not going to 0:20:49.080 --> 0:20:51.800 be any cost to you. We're going to pay for 0:20:51.800 --> 0:20:54.640 it here at Faith VI, just as our gift to you. 0:20:54.960 --> 0:20:57.800 And we'll cover, you know, two or 3 or 4 sessions, 0:20:57.800 --> 0:21:02.359 whatever you need, uh, from the certified Christian financial counselor. And, uh, 0:21:02.359 --> 0:21:05.000 they'll just be available to you to serve you. So 0:21:05.160 --> 0:21:07.440 you stay on the line. Our team will get your 0:21:07.440 --> 0:21:10.560 phone number. And then one of our certified Christian financial 0:21:10.560 --> 0:21:13.679 counselors will reach out to you. We'll pay for it, 0:21:13.680 --> 0:21:17.159 but I'm confident they'll be a blessing to you. And 0:21:17.200 --> 0:21:19.280 I'm going to ask the faith and finance community to 0:21:19.280 --> 0:21:22.800 be praying for you as well as you steward God's resources. 0:21:22.800 --> 0:21:24.760 Sounds like you're doing a great job. I realize it's 0:21:24.760 --> 0:21:27.359 not easy, but, uh, we want to help you along 0:21:27.359 --> 0:21:29.280 the way. So stay that right there and we'll get 0:21:29.280 --> 0:21:31.750 somebody in touch with you. Well, folks, before we head 0:21:31.750 --> 0:21:33.629 to this break, let me remind you, if you haven't 0:21:33.630 --> 0:21:38.189 checked out faith. Com. That's faith. Philly.com. I'd love for 0:21:38.190 --> 0:21:40.510 you to do that. You'll find the best content in 0:21:40.510 --> 0:21:44.030 biblical finance there for you to grow in your understanding 0:21:44.030 --> 0:21:48.389 of managing money God's way. You'll find our community and 0:21:48.750 --> 0:21:52.150 the money management system. It's all there at Faith. Philly.com. Now, again, 0:21:52.150 --> 0:21:54.990 a reminder we're not here today, but more of your 0:21:54.990 --> 0:22:05.389 questions that we lined up after the break. Great to 0:22:05.390 --> 0:22:07.790 have you with us today on faith and finance live. 0:22:07.830 --> 0:22:10.230 By the way, we're not live today. We're away from 0:22:10.230 --> 0:22:12.710 the studio, so don't call in. But we have some 0:22:12.710 --> 0:22:16.110 great questions that we lined up in advance. By the way, 0:22:16.350 --> 0:22:20.550 this ministry is entirely listener supported. That means we rely 0:22:20.550 --> 0:22:23.350 on your financial gifts and support to do what we 0:22:23.350 --> 0:22:26.030 do on the air every day. If you consider a gift, 0:22:26.070 --> 0:22:29.740 we'd certainly be grateful. Just head to our website. faith Philly.com. 0:22:29.740 --> 0:22:33.379 That's faith. Dot com and click the give button. Thanks 0:22:33.380 --> 0:22:37.300 in advance. You know, periodically we hear from folks that, uh, 0:22:37.300 --> 0:22:40.620 write into us via email and we try to tackle 0:22:40.619 --> 0:22:43.900 a few of these questions, uh, whenever we're able to. 0:22:43.940 --> 0:22:46.620 Let's do a couple of those right now. Uh, this 0:22:46.619 --> 0:22:49.420 first one comes from Lori. She writes, I will be 0:22:49.420 --> 0:22:52.580 full retirement age in August. I'm still working, so my 0:22:52.580 --> 0:22:55.580 Social Security will be a surplus that I want to 0:22:55.700 --> 0:22:59.300 put toward my home. I still owe $82,000 on it, 0:22:59.300 --> 0:23:02.100 but I also know that it needs a lot of repairs. 0:23:02.100 --> 0:23:05.020 Does it make more sense to put this extra cash 0:23:05.020 --> 0:23:09.580 flow for repairs, paying down the mortgage, or a little 0:23:09.619 --> 0:23:12.540 bit of both? And I would just say, Lori, first 0:23:12.540 --> 0:23:17.060 of all, if your home does need repairs, um, let's determine, 0:23:17.100 --> 0:23:19.820 you know, first of all, are they imminent or are they, 0:23:19.859 --> 0:23:23.260 you know, more renovations? If they really are truly repairs, 0:23:23.300 --> 0:23:25.900 we probably want to go ahead and get those done. Uh, 0:23:25.900 --> 0:23:28.290 just so we don't cause any damage to the home. 0:23:28.290 --> 0:23:31.330 So I would say this surplus income is a great 0:23:31.330 --> 0:23:35.810 opportunity for you to do that. I would start there now. Obviously, 0:23:35.810 --> 0:23:39.689 the ability to fund any of that, you know, out of, uh, 0:23:39.690 --> 0:23:43.010 you know, any other cash flow is great. But I 0:23:43.010 --> 0:23:45.650 would see all of the surplus that you have, including 0:23:45.650 --> 0:23:48.730 the Social Security, as a way to fund those repairs 0:23:48.730 --> 0:23:52.050 without taking on debt. Um, so I think that's absolutely 0:23:52.050 --> 0:23:55.810 the priority use of that. Um, I would say after that, 0:23:55.810 --> 0:23:59.770 let's make sure we've got a fully funded emergency fund. Um, 0:23:59.810 --> 0:24:01.570 you know, as you head into retirement, I'd love for 0:24:01.570 --> 0:24:04.770 you to have a good six months living expenses, if 0:24:04.770 --> 0:24:07.410 not a little bit more in that season of life. 0:24:07.490 --> 0:24:10.609 And then once those two goals are met, um, you know, 0:24:10.650 --> 0:24:13.250 I would say the home repairs are fully funded and 0:24:13.250 --> 0:24:16.370 you're back up in kind of working order. Um, you've 0:24:16.369 --> 0:24:20.170 got your fully funded emergency fund. Then let's take that 0:24:20.170 --> 0:24:22.890 money and put it toward the mortgage principal. That will, 0:24:22.930 --> 0:24:26.130 of course, reduce future interest costs and give you more 0:24:26.130 --> 0:24:29.210 cash in retirement. Once you can pay off that house 0:24:29.330 --> 0:24:33.209 and reclaim what is probably your largest expense. Uh, the 0:24:33.210 --> 0:24:35.770 second one is a question that we've got here is 0:24:35.770 --> 0:24:39.650 from Mikisha. Here's what Mikisha writes. What's the difference between 0:24:39.650 --> 0:24:45.650 getting a debt consolidation loan or working with a debt counselor? Well, 0:24:45.810 --> 0:24:47.770 this is a great question, and it's one that comes 0:24:47.770 --> 0:24:51.690 up a lot. Um, debt consolidation versus what I'll call 0:24:51.690 --> 0:24:57.129 debt management. So debt consolidation is a loan. It essentially 0:24:57.130 --> 0:25:01.370 is where you roll multiple debts into a single new loan. 0:25:01.810 --> 0:25:04.850 Typically with a lower interest rate. Now you're still fully 0:25:04.850 --> 0:25:08.290 responsible for repayment. And you'll need good credit to qualify 0:25:08.330 --> 0:25:12.690 for favorable terms. It's also dangerous, though, because what I 0:25:12.810 --> 0:25:17.770 experience is that most folks who get a debt consolidation loan, uh, 0:25:17.770 --> 0:25:21.250 end up doing so to take the pressure off without 0:25:21.290 --> 0:25:25.600 actually changing the habits that led to the debt in 0:25:25.600 --> 0:25:28.640 the first place. And so you've got to identify what 0:25:28.640 --> 0:25:31.640 was the root cause. Am I just treating a symptom? 0:25:31.920 --> 0:25:35.320 The debt because of lifestyle spending beyond my means? Or 0:25:35.359 --> 0:25:38.920 am I truly, you know, resolving the situation? I've already 0:25:38.960 --> 0:25:42.159 handled the habits, and now I'm just looking to, you know, 0:25:42.200 --> 0:25:44.880 eliminate the debt as quickly as possible with as little 0:25:44.880 --> 0:25:49.280 interest as possible. Typically, this is just my experience. Typically, 0:25:49.280 --> 0:25:51.840 what I find is most people that get a consolidation 0:25:51.840 --> 0:25:55.400 loan haven't done the hard work to change the habits 0:25:55.560 --> 0:25:57.480 that led to the debt in the first place. So 0:25:57.480 --> 0:25:59.440 then they call me back six months later and say, 0:25:59.440 --> 0:26:02.280 all right, Rob, now I've got the consolidation loan. And 0:26:02.280 --> 0:26:04.960 guess what? The credit card debt is back. So I 0:26:05.000 --> 0:26:08.400 want to avoid that. Um, now when it comes to 0:26:08.440 --> 0:26:12.600 debt management, that is my preferred way, without a doubt, 0:26:12.600 --> 0:26:14.840 for you to get this paid off once and for all. 0:26:15.000 --> 0:26:18.399 Keep in mind, when we do the debt consolidation, roll 0:26:18.400 --> 0:26:22.160 everything together, even if there's a lower interest rate, typically 0:26:22.560 --> 0:26:25.590 we have a longer payback period. So what that just 0:26:25.590 --> 0:26:28.190 simply means is if we have a lower rate but 0:26:28.190 --> 0:26:31.149 we pay back over a longer runway, you know, we're 0:26:31.150 --> 0:26:33.310 probably going to end up paying the same amount anyway. 0:26:33.350 --> 0:26:35.630 And that's one other reason I don't like it. With 0:26:35.630 --> 0:26:38.390 debt management, the debt stays right where it is. If 0:26:38.390 --> 0:26:40.790 you're with Capital One on a credit card, you're going 0:26:40.830 --> 0:26:42.790 to stay with Capital One. You're at Citi, you're going 0:26:42.830 --> 0:26:45.550 to stay with Citi. But what happens is each of 0:26:45.550 --> 0:26:50.550 these credit card companies have a department they call credit counseling. 0:26:50.550 --> 0:26:52.990 And they all have an approved interest rate. And it's 0:26:52.990 --> 0:26:56.710 always lower than the prevailing rate typically. Keep in mind, 0:26:56.710 --> 0:27:00.510 the average interest rate right now is about 23%. Typically 0:27:00.510 --> 0:27:04.720 credit counseling rates are between 0 and 10%, often between 0:27:04.720 --> 0:27:08.229 0 and 8. So a dramatic reduction, you know, in 0:27:08.230 --> 0:27:12.750 many cases 50% less or more. Um, and so that's 0:27:12.750 --> 0:27:15.390 great because that just means now I've got a larger 0:27:15.390 --> 0:27:18.950 percentage every month with the same payment going to principal 0:27:18.950 --> 0:27:21.820 reduction with that lower interest rate. The other key is 0:27:21.820 --> 0:27:25.699 you have accountability because you're paying through Christian credit counselors. Thirdly, 0:27:25.700 --> 0:27:27.700 they're going to help you do a budget that's great. 0:27:27.700 --> 0:27:30.460 That's just an added benefit. And then fourth, and this 0:27:30.460 --> 0:27:32.740 is a big one. Don't miss this. You know what 0:27:32.740 --> 0:27:36.420 happens with credit counseling is you have a level monthly payment. 0:27:36.780 --> 0:27:39.220 See if you've ever been paying back credit card debt. 0:27:39.220 --> 0:27:42.260 You've probably noticed that as the balance comes down, the 0:27:42.260 --> 0:27:46.020 minimum payment comes down because it's a percentage of the balance. Well, 0:27:46.020 --> 0:27:48.780 what's your, you know, likely response to that? Well, I'm 0:27:48.780 --> 0:27:50.580 just going to pay as little as possible because I 0:27:50.580 --> 0:27:53.179 don't see myself getting out of this debt anytime soon. 0:27:53.180 --> 0:27:54.940 So I might as well put that money to other 0:27:54.940 --> 0:27:58.659 good use. Well, that just extends the repayment period. But 0:27:58.660 --> 0:28:01.220 with credit counseling, you have a level monthly payment that 0:28:01.220 --> 0:28:04.300 fits into your budget. And because that payment doesn't come 0:28:04.300 --> 0:28:08.379 down with the balance every month, it's a larger percentage 0:28:08.380 --> 0:28:12.100 of the overall debt that was owed, which is great. 0:28:12.220 --> 0:28:14.940 And you put those two things together, the fact that 0:28:14.980 --> 0:28:18.300 we've got a dramatically lower interest rate and the fact 0:28:18.300 --> 0:28:21.100 that we've got a level monthly payment, All of that 0:28:21.100 --> 0:28:26.300 together results in, on average, you paying that debt back 80% faster. 0:28:26.340 --> 0:28:29.700 That's a game changer. And so this is absolutely my 0:28:29.700 --> 0:28:33.580 preferred way. Now keep in mind there's many credit counseling 0:28:33.580 --> 0:28:36.899 agencies out there. They're all non-profit. They have to be. 0:28:36.900 --> 0:28:38.820 But the one that we've worked with for a long, 0:28:38.820 --> 0:28:43.060 long time, and they've worked with literally thousands of our listeners, 0:28:43.260 --> 0:28:46.220 is Christian credit counselors. You'll find them on the web 0:28:46.220 --> 0:28:51.260 at Christian Credit Counselors. So Mikisha long answer to a 0:28:51.260 --> 0:28:54.540 short question, but I would stay away from debt consolidation. 0:28:54.660 --> 0:28:58.180 I would absolutely do debt management or what's called credit counseling. 0:28:58.300 --> 0:29:00.860 And I would use Christian credit counselors. Now, let me 0:29:00.860 --> 0:29:04.020 take just a moment and mention one other option that 0:29:04.020 --> 0:29:06.860 I don't like, but folks will often use. And it's 0:29:06.860 --> 0:29:10.340 not debt consolidation. It's not debt management. It's a third option. 0:29:10.340 --> 0:29:13.580 It's called debt settlement. Now here's what happens there. With 0:29:13.580 --> 0:29:16.220 debt settlement, you will find a company. And by the way, 0:29:16.220 --> 0:29:18.260 there's a lot of bad actors in this space. So 0:29:18.260 --> 0:29:21.090 this is just another reason to stay away from it. 0:29:21.090 --> 0:29:23.610 But with debt settlement, they will ask you to stop 0:29:23.610 --> 0:29:27.330 paying your creditors. I know it's crazy. Uh, they're going 0:29:27.370 --> 0:29:29.170 to tell you that. Well, if you stop paying, they're 0:29:29.170 --> 0:29:31.210 going to get into collections, and that's going to create 0:29:31.210 --> 0:29:33.890 the environment where we can come in behind you and 0:29:33.890 --> 0:29:36.970 negotiate a reduced settlement. But guess what? Number one, you're 0:29:36.970 --> 0:29:39.730 not honoring your obligation. And I think as Christ followers, 0:29:39.730 --> 0:29:43.330 we need to. Number two, uh, you know, you are 0:29:43.330 --> 0:29:45.250 putting yourself in a position where you're going to trash 0:29:45.250 --> 0:29:48.370 your credit because you're stopping payment. So you're going to 0:29:48.370 --> 0:29:51.370 get into collections. You know, it could be charged off. 0:29:51.370 --> 0:29:54.170 There could be a judgment that's legal, a legal judgment 0:29:54.170 --> 0:29:56.610 against you. All of that's going to hit your credit 0:29:56.610 --> 0:30:00.090 report just creates a real mess. So that is not 0:30:00.130 --> 0:30:02.530 what you want to do. So bottom line, these are 0:30:02.530 --> 0:30:06.370 the three kind of most common ways people pay back 0:30:06.370 --> 0:30:11.570 debt debt consolidation, debt settlement and debt management. My preferred 0:30:11.570 --> 0:30:15.250 approach again, debt management and our friends at Christian Credit 0:30:15.250 --> 0:30:18.400 counselors.org and help. By the way, if you have less 0:30:18.400 --> 0:30:21.960 than 4000, you probably don't need it. Just snowball it. 0:30:22.000 --> 0:30:25.040 Smallest to largest balance. Free up as much as you 0:30:25.040 --> 0:30:27.760 can in your budget. Put as much toward principal every 0:30:27.760 --> 0:30:30.960 month as you can. Got over 4000. That's where debt 0:30:31.000 --> 0:30:34.000 management really shines. Well, folks, we're going to take one 0:30:34.000 --> 0:30:36.880 more quick break and then back with our final segment today. 0:30:36.880 --> 0:30:40.880 But if you need assistance from a financial or legal professional, 0:30:41.040 --> 0:30:44.120 we'd love for you to visit Faith Philly.com and click 0:30:44.120 --> 0:30:49.240 find A.K.A. again, that's Faith Philly.com and click find A.K.A. 0:30:49.280 --> 0:30:53.680 that stands for Certified Kingdom Advisor. Our preferred designation for 0:30:53.680 --> 0:30:57.040 financial advice from a biblical worldview. We're back with much 0:30:57.040 --> 0:30:59.120 more just around the corner. Stick around. 0:31:08.040 --> 0:31:11.320 This is faith in finance. Live with Rob West. Hey, 0:31:11.320 --> 0:31:14.200 if you hear a phone number mentioned today, please ignore 0:31:14.200 --> 0:31:17.710 that number and don't call us because today's broadcast was 0:31:17.710 --> 0:31:21.390 previously recorded, but we think the upcoming information will help 0:31:21.390 --> 0:31:23.709 you and make you a wise steward of what God's 0:31:23.710 --> 0:31:26.310 given you. So please stay tuned. 0:31:28.710 --> 0:31:30.830 Let me take just a moment and tell you about 0:31:30.830 --> 0:31:32.790 what it means to become a faith life partner, and 0:31:32.790 --> 0:31:36.510 then we'll head to the phones. Anthony's holding patiently in Wisconsin. 0:31:36.870 --> 0:31:40.470 Faith VI partners are those that support the listener supported 0:31:40.470 --> 0:31:43.670 work of Faith VI. They come alongside us each month 0:31:43.670 --> 0:31:46.630 with a gift of $35 or more, which is huge 0:31:46.630 --> 0:31:49.390 because as a listener supported ministry, the only way we 0:31:49.390 --> 0:31:53.150 can bring you this broadcast is through your listener support. 0:31:53.270 --> 0:31:55.270 And so these are the men and women that say, 0:31:55.270 --> 0:31:57.830 I love the program, I've benefited from it. I want 0:31:57.830 --> 0:32:00.230 more people to get this message. I'm not getting this 0:32:00.230 --> 0:32:02.870 anywhere else. And they say, I'll be in the boat 0:32:02.870 --> 0:32:05.710 with you to the tune of $35 a month or 0:32:05.710 --> 0:32:08.630 more now, as a way of saying thank you. And 0:32:08.670 --> 0:32:11.630 because we know that if you're a faithful partner, you 0:32:11.630 --> 0:32:14.390 want to be a good steward of God's resources. We 0:32:14.470 --> 0:32:17.270 produce some world class resources that we send out to 0:32:17.310 --> 0:32:21.630 our partners. But you would get four copies of our beautiful, 0:32:21.950 --> 0:32:27.270 really thoughtful, magazine faithful steward. It's gorgeous and really incredible content. 0:32:27.470 --> 0:32:29.790 You get four issues a year mailed to your door. Plus, 0:32:29.790 --> 0:32:31.750 every time we come out with a study or devotional, 0:32:31.750 --> 0:32:34.430 which is typically twice a year, you'll get that mailed 0:32:34.430 --> 0:32:36.470 to you as well. So if you want to become 0:32:36.470 --> 0:32:39.430 a partner, just head to our website. Com click give 0:32:39.470 --> 0:32:41.630 at the top of the page and you'll find all 0:32:41.630 --> 0:32:44.310 of the details. All right let's round out the broadcast 0:32:44.350 --> 0:32:47.750 today as many calls as we can. Anthony thanks for 0:32:47.750 --> 0:32:50.030 waiting patiently there in Wisconsin, sir. Go ahead. 0:32:50.470 --> 0:32:53.350 Yes. Yes, sir. Uh, first off, I want to thank 0:32:53.350 --> 0:32:56.590 you for your program. I try to listen to it daily. Awesome. 0:32:56.630 --> 0:33:00.790 Just the the financial, the financial, uh, advice from a 0:33:00.790 --> 0:33:05.590 Christian perspective is invaluable. But, uh, my question is, my 0:33:05.590 --> 0:33:07.830 wife and I are going to be purchasing a home, 0:33:07.830 --> 0:33:13.020 hopefully this year. We have a purchase agreement already lined up. Um, Uh, 0:33:13.380 --> 0:33:17.180 the homeowners right now, actually, they're looking for a new house, 0:33:17.180 --> 0:33:19.540 and they have a home equity line of credit that 0:33:19.540 --> 0:33:21.860 they're going to use to purchase their home from the 0:33:21.900 --> 0:33:23.740 from the sale of the home that they're living in. 0:33:24.740 --> 0:33:29.660 And my question is, uh, the credit union that we're 0:33:29.660 --> 0:33:32.260 going through, they're offering us the, you know, the standard 0:33:32.260 --> 0:33:35.940 30 year mortgage with one monthly payment. Yeah. But, uh, 0:33:36.420 --> 0:33:38.540 my wife and I, we we try to do extra 0:33:38.540 --> 0:33:41.500 payments at least once a month, maybe once every two months. 0:33:41.820 --> 0:33:45.580 And the loan officer said that they offer a biweekly 0:33:45.580 --> 0:33:48.580 payment plan. And I just wanted to get some of 0:33:48.580 --> 0:33:51.180 your insight on that. What would be better? Which one 0:33:51.180 --> 0:33:53.380 would be best? You know the pros and cons of both. 0:33:53.620 --> 0:33:57.380 Yeah. Well, it's a great question, Anthony. And I love 0:33:57.380 --> 0:34:01.420 you sending extra to the principal because that's really going 0:34:01.460 --> 0:34:03.740 to pay off. I mean, if you just send the 0:34:03.740 --> 0:34:06.580 equivalent of one extra payment a year, it'll take a 0:34:06.580 --> 0:34:09.220 30 year mortgage and make it like 26 years, depending 0:34:09.219 --> 0:34:11.299 on the interest rate. Uh, but it's going to cut 0:34:11.489 --> 0:34:14.930 years off, which is awesome. And you know, that's a 0:34:14.930 --> 0:34:18.570 that's a real savings in interest. Now here's the thing. 0:34:18.570 --> 0:34:21.529 I like the biweekly payment option. And I'll explain for 0:34:21.530 --> 0:34:23.609 the rest of our listeners what that is in just 0:34:23.610 --> 0:34:26.610 a moment. Um, the only thing I don't like is 0:34:26.810 --> 0:34:29.770 if in doing that, by setting it up through the 0:34:29.770 --> 0:34:32.410 credit union, if they're going to charge you a fee, 0:34:32.690 --> 0:34:35.290 you don't need to do that because you can essentially 0:34:35.290 --> 0:34:38.489 do this on your own. Now, if they're willing to 0:34:38.489 --> 0:34:41.009 do it and not charge anything, that's great. The other 0:34:41.010 --> 0:34:43.730 thing is you don't want to have to do it. 0:34:43.730 --> 0:34:47.089 You want it to be an optional thing. Because if forever, 0:34:47.090 --> 0:34:50.370 if for any reason you ever needed to just go 0:34:50.370 --> 0:34:53.690 back to the the one standard payment a year instead 0:34:53.690 --> 0:34:57.609 of the the half payment every, uh, you know, two weeks, 0:34:57.890 --> 0:35:00.089 you would want that option. You don't want to have 0:35:00.090 --> 0:35:03.969 to be forced into doing the biweekly payment. Does that 0:35:03.969 --> 0:35:04.650 make sense? 0:35:05.489 --> 0:35:06.010 Yes, sir. 0:35:06.210 --> 0:35:08.969 Okay. But essentially you can do this on your own. Now, 0:35:08.969 --> 0:35:10.840 let me explain how this works for the benefit of 0:35:10.880 --> 0:35:13.600 the rest of our listeners. So think about this. When 0:35:13.600 --> 0:35:17.360 you make a mortgage payment, you make one payment each month. 0:35:17.520 --> 0:35:19.960 So you make 12 per year. And that's just the 0:35:19.960 --> 0:35:24.280 way most people pay their mortgage with the biweekly mortgage payment. 0:35:24.280 --> 0:35:28.080 Or some people call bi monthly. Essentially, you make a 0:35:28.120 --> 0:35:32.879 half payment every two weeks. Okay. Now when you make 0:35:32.880 --> 0:35:38.440 a half payment every two weeks, there are 26, uh, 0:35:38.600 --> 0:35:42.400 you know, two week periods in a year, which means 0:35:42.400 --> 0:35:47.680 you're making 13 monthly payments. You're making an extra payment 0:35:47.680 --> 0:35:50.560 every year. And so by getting into that, you know, 0:35:50.600 --> 0:35:55.600 biweekly option where you send a half payment every two weeks, essentially, 0:35:55.600 --> 0:35:58.040 if you can get into that rhythm you're going to 0:35:58.080 --> 0:36:00.400 every six months, you're going to send an extra half payment. 0:36:00.400 --> 0:36:03.000 Every year. You're going to send an extra the equivalent 0:36:03.000 --> 0:36:06.319 of one full payment. That's great because again, that one 0:36:06.320 --> 0:36:08.799 extra payment a year makes a dramatic difference in the 0:36:08.950 --> 0:36:11.670 total payback of that mortgage. The key is I don't 0:36:11.670 --> 0:36:13.710 want to pay for the option to do that because 0:36:13.710 --> 0:36:15.430 it shouldn't cost you anything, and I don't want to 0:36:15.430 --> 0:36:17.870 be required to do that. But apart from that, I 0:36:17.870 --> 0:36:19.630 really like it. Is that helpful, though? 0:36:20.510 --> 0:36:21.710 Yes, sir. It makes sense. 0:36:22.469 --> 0:36:25.270 Awesome. Well, Anthony, all the best to you and your 0:36:25.270 --> 0:36:27.830 bride on purchasing that home. That's going to be a 0:36:27.870 --> 0:36:32.229 real blessing. Just make sure you don't get stuck with 0:36:32.230 --> 0:36:35.069 a home that you you can't afford. I realize homeownership 0:36:35.070 --> 0:36:39.549 is really challenging right now, and, um, you know, you 0:36:39.590 --> 0:36:41.510 don't want to stretch and buy a house that's beyond 0:36:41.510 --> 0:36:43.630 your means, but as long as you keep it within 0:36:43.630 --> 0:36:47.109 your means, typically that means around 25% of your take 0:36:47.150 --> 0:36:50.870 home pay for principal interest, taxes, and insurance with a 20% 0:36:50.870 --> 0:36:53.630 down payment, then it'll be a real blessing to you. Hey, 0:36:53.630 --> 0:36:56.469 thanks for calling today. Call anytime. We appreciate you being 0:36:56.469 --> 0:36:57.790 on the program, by the way. Stay on the line. 0:36:57.790 --> 0:36:59.950 I'm going to send you a copy of Faithful Steward. 0:36:59.950 --> 0:37:02.469 I think it'll be an encouragement to you. Uh, let's 0:37:02.469 --> 0:37:04.550 go to Texas. Hi, Lizette. How can I help? 0:37:05.469 --> 0:37:08.550 Hi, Mr. West. Uh, I have a question. My husband 0:37:08.550 --> 0:37:11.790 and I, we have a whole life insurance policy, and 0:37:11.790 --> 0:37:14.310 we've been paying it for about ten years, and we 0:37:14.310 --> 0:37:19.069 only have 19,000. We should have 24,000. But that's what 0:37:19.070 --> 0:37:22.910 it shows. I and we we were thinking if we 0:37:22.910 --> 0:37:26.630 should cancel it, they would only get 16,000. 0:37:28.030 --> 0:37:30.910 Yes. Okay. What is the death benefit on that list? 0:37:30.910 --> 0:37:31.550 Do you know? 0:37:32.590 --> 0:37:35.190 I believe it's 150,000. 0:37:35.350 --> 0:37:39.069 Okay. And do you all need that death benefit? I mean, 0:37:39.110 --> 0:37:41.910 if something. Well, first of all, who who is it? 0:37:41.950 --> 0:37:44.989 Who's life is insured? Is it your husband. 0:37:45.070 --> 0:37:45.470 Or. 0:37:45.989 --> 0:37:47.110 My husband? 0:37:47.150 --> 0:37:48.630 Okay. Payable to you? 0:37:50.150 --> 0:37:53.070 Yeah. And we have two children, so we're all in there. 0:37:53.830 --> 0:37:56.989 Okay. But the. But you're the beneficiary. So if he 0:37:56.989 --> 0:38:00.070 passed away, the 150,000 would come to you, right? 0:38:00.670 --> 0:38:01.310 Yes. 0:38:01.350 --> 0:38:04.589 Okay. And if he passed away, would that create a 0:38:04.590 --> 0:38:07.819 hardship for you? because you lose income. 0:38:09.620 --> 0:38:13.820 Um. Uh, yeah. He's the one that provides mostly for 0:38:13.820 --> 0:38:15.940 our home. Yeah, I work part time. 0:38:16.180 --> 0:38:19.140 Got it. Yeah. So that's the real purpose of this 0:38:19.140 --> 0:38:21.939 and that. You know, I would prefer you see this 0:38:21.940 --> 0:38:26.180 life insurance as offsetting that risk that exists that if 0:38:26.180 --> 0:38:28.460 he were to be called home by the Lord and 0:38:28.460 --> 0:38:31.580 he passes away, that would be a, you know, create 0:38:31.620 --> 0:38:34.819 a challenge for you because his income is gone. But 0:38:34.820 --> 0:38:37.860 the most cost effective way to get that life insurance 0:38:37.860 --> 0:38:40.140 is not through a whole life policy where it's combined 0:38:40.140 --> 0:38:43.820 with a savings vehicle. It's through what's called term insurance, 0:38:44.060 --> 0:38:47.220 which is pure insurance. You're simply paying the cost every 0:38:47.219 --> 0:38:51.379 month for the mortality expense, what it actually costs, based 0:38:51.380 --> 0:38:55.299 on the actuarial tables, to insure his life for a 0:38:55.300 --> 0:38:57.739 set period of time, based on his health and the 0:38:57.739 --> 0:39:01.219 amount of coverage that you want. But I suspect that 0:39:01.219 --> 0:39:05.210 150,000 wouldn't be enough. But the nice thing about term 0:39:05.210 --> 0:39:07.450 insurance is, you know, maybe you get a ten year 0:39:07.450 --> 0:39:11.250 policy on his life. So that between now and when 0:39:11.250 --> 0:39:14.969 you all retire, where at that point, hopefully you've got 0:39:14.969 --> 0:39:17.330 enough in the way of assets and income sources like 0:39:17.330 --> 0:39:21.569 Social Security, where you no longer need his income. Uh, 0:39:21.610 --> 0:39:24.330 he wouldn't have it anyway if he's retired. And then 0:39:24.330 --> 0:39:27.250 you don't need that insurance anymore, you drop it. But 0:39:27.250 --> 0:39:30.489 while he's still working, you've got plenty of insurance so 0:39:30.489 --> 0:39:33.450 that if he passes away, you've got enough to be 0:39:33.489 --> 0:39:36.130 able to, you know, fund your lifestyle for the rest 0:39:36.130 --> 0:39:39.089 of your life. Well, the the most cost effective way 0:39:39.090 --> 0:39:42.529 for that insurance is term insurance. So here's what I 0:39:42.530 --> 0:39:45.370 would consider doing. And you know, remember we only have 0:39:45.370 --> 0:39:47.489 a couple of minutes together on the air here. So 0:39:47.489 --> 0:39:49.290 if you want to get an advisor to get in 0:39:49.290 --> 0:39:52.490 the middle of this, that would always be the better option. 0:39:52.489 --> 0:39:55.730 But just my kind of high level thoughts are let's 0:39:55.730 --> 0:39:58.649 determine how much insurance you need. You know, what would 0:39:58.650 --> 0:40:02.810 it take for you to replace his income, at least 0:40:02.810 --> 0:40:05.279 between now and when, you know he was planning to 0:40:05.280 --> 0:40:08.469 retire instead of 150, you may decide that's 3 or 0:40:08.469 --> 0:40:12.359 4 or $500,000, and then let's go see what it 0:40:12.360 --> 0:40:15.479 would cost to get a ten year term policy for 0:40:15.480 --> 0:40:19.280 that amount on his life payable to you. And then 0:40:19.280 --> 0:40:21.759 I suspect it's going to be perhaps less than the 0:40:21.760 --> 0:40:25.000 policy you're already paying. And once it's in force. And 0:40:25.000 --> 0:40:26.799 that's the key, we wouldn't want to do anything until 0:40:26.800 --> 0:40:29.560 that policy is in force. But at that point, then 0:40:29.560 --> 0:40:33.520 you could cancel the whole life, reclaim the 19,000, maybe 0:40:33.520 --> 0:40:36.359 use that to shore up your emergency fund. And now 0:40:36.400 --> 0:40:39.399 you're no longer paying for the whole life policy. You've 0:40:39.400 --> 0:40:42.200 got the cash value to do something else with, and 0:40:42.200 --> 0:40:45.279 you have more life insurance for the next decade so 0:40:45.280 --> 0:40:48.239 that if something happens to him, you're good. And then 0:40:48.239 --> 0:40:50.359 once you all get to retirement, you don't need that 0:40:50.360 --> 0:40:53.040 policy anyway, and you drop it. Does that make sense? 0:40:53.800 --> 0:40:56.799 It does. Thank you. Thank you so much for your advice. 0:40:57.600 --> 0:41:00.279 All right. You're welcome. Lisa, thanks for calling today. We 0:41:00.280 --> 0:41:03.920 appreciate you very much. Well, folks, I hope today's broadcast 0:41:03.920 --> 0:41:05.879 has been a blessing to you. I hope it's helped 0:41:05.880 --> 0:41:08.200 you to think about your role as a steward in 0:41:08.200 --> 0:41:10.560 managing God's money, that were to hold it loosely and 0:41:10.560 --> 0:41:14.200 give it generously. By the way, speaking of giving generously, 0:41:14.239 --> 0:41:17.760 each quarter we spotlight a ministry that we just love 0:41:17.760 --> 0:41:20.000 the work they're doing in the name of Jesus. And 0:41:20.000 --> 0:41:24.560 this quarter, it's the ministry heart for Lebanon. And, you know, 0:41:24.600 --> 0:41:26.560 let me take you to Psalm 82 as we wrap 0:41:26.560 --> 0:41:29.160 up here today. Verses three and four give justice to 0:41:29.200 --> 0:41:32.040 the weak and the fatherless, uphold the rights of the 0:41:32.040 --> 0:41:35.720 afflicted and the destitute. You know, as stewards of God's resources, 0:41:35.719 --> 0:41:39.280 we're called to invest in what matters for eternity. And 0:41:39.280 --> 0:41:42.480 an urgent need right now exists in the country of Lebanon, 0:41:42.480 --> 0:41:46.800 where girls face exploitation and early marriage and a future 0:41:46.800 --> 0:41:49.840 shaped by fear instead of hope and our partners. Hartford, 0:41:49.840 --> 0:41:53.480 Lebanon is a Christ centered ministry that is meeting the 0:41:53.480 --> 0:41:56.399 needs of these young women, sharing the hope and love 0:41:56.400 --> 0:42:00.279 of Jesus, building up their identity which is preventing a 0:42:00.350 --> 0:42:04.270 lot of these tragedies that are involving exploitation. If you'd 0:42:04.270 --> 0:42:06.950 like to be a part of, uh, sharing Jesus with 0:42:06.950 --> 0:42:10.069 three girls, you can do that when you go to faith. Com. 0:42:13.910 --> 0:42:21.430 Or text the word faith to 98656. That's faith to 98656. Well, folks, 0:42:21.430 --> 0:42:23.270 it's been a joy to be along with you today. 0:42:23.270 --> 0:42:27.149 Thanks for inviting us into your story. What a joy 0:42:27.150 --> 0:42:29.790 it is to encourage you with God's Word as you 0:42:29.790 --> 0:42:32.990 seek to be that wise and faithful steward. Our goal 0:42:32.989 --> 0:42:36.310 that you'd see God as your ultimate treasure. Let me 0:42:36.350 --> 0:42:38.270 say thanks to my team today. I couldn't do it 0:42:38.270 --> 0:42:41.589 without him. Amy, Dan, Gabby, T, and Jim. Faith and 0:42:41.590 --> 0:42:44.910 finance lives a partnership between Moody Radio and Faith fi. 0:42:45.030 --> 0:42:47.549 Have a wonderful day and come back and join us 0:42:47.550 --> 0:42:50.750 next time for another edition of Faith and Finance live.