Banking That Builds God’s Kingdom with Aaron Caid

Hey everyone, Rob West here. You've heard me talk about faith and finances for years and a common question I get is, how can I align my faith values with my banking decisions? Well, we recommend our friends at Christian Community Credit Union who've been serving Christians for over 67 years. Visit JoinChristianCommunity.com to learn more. That's JoinChristianCommunity.com. Hi, I'm Rob West. At first glance, banks and credit unions can seem pretty similar as they both offer valuable financial services. But dig a little deeper and you'll find that credit unions can be a powerful partner for managing money. Aaron Cade joins us to explain why and then we'll take your calls at 800-525-7000.

That's 800-525-7000. This is faith and finance, biblical wisdom for your financial decisions. Aaron, great to have you back. Thank you, Rob.

It's great to be back with you. Aaron, banks play a key role in our economy, no doubt. But what sets credit unions like CCCU apart and gives them a unique place in the financial world?

Well, first and foremost, credit unions are not for profit cooperatives owned by their members. So the focus is on long term member relationships and services preeminent. At CCCU, our mission is rooted in striving to serve and love others like Christ.

Yeah, and that really is a differentiator, no doubt. We, of course, get a lot of questions from listeners who want to do their banking with a financial institution that aligns with their Christian values. Talk about why that's so important. Well, I think Jesus said it best in Matthew 621, for where your treasure is, there your heart will be also. So how you use your money reflects your values and shapes your heart, where you choose to bank should as well. At CCCU, we try to help you align your finances with your biblical worldview. For example, we provide affordable financing to build new churches and to help Christ centered ministries grow. Thus, we aim to ensure that your money doesn't just earn you a great rate, it also helps expand God's kingdom. Yeah, and I love that about your work at CCCU.

You know that you're working with an institution aligned with your values, but you also know a portion of every dollar is going to some incredible kingdom building work. Now, Aaron, many people assume credit unions can't match banks when it comes to rates. Is that actually true?

No, not really. In fact, the opposite is often true. We don't exist to make profits for shareholders. The profits we earn are returned to members in the form of better rates and lower fees. And at CCCU, we donate a portion of earnings to Christian ministries. So we take biblical stewardship seriously.

Thus, our products are designed to help members honor God with their finances. Yeah, and in practical terms, Aaron, what are some of the products then that CCCU offers to individuals? And perhaps you can even give us some of the rates that you offer as well.

Sure. I mean, rates can change with market conditions, but I'll speak to today's rates. Our Harvest checking account offers a high yield of 4% APY on deposits up to $5,000. And there are no maintenance fees. The Harvest high yield savings account pays 5% APY on deposits up to $5,000. And the Welcome CD, which is a great introductory vehicle for new members, offers five and 10 month terms that pay between four and a half and 4.75% APY. And we offer the only credit card I'm aware of that not only earns you one and a half percent cash back on every purchase, but also gives to Christian causes with every swipe. In addition, we offer vehicle loans, mortgages, and HELOCs at competitive rates. And all of this comes with full service digital banking and 24 seven member support. And importantly, we also offer resources from trusted partners, including FaithFi and Compass Financial Ministry that help members grow in their financial discipleship. Hmm.

Yeah, I love that. And boy, a lot of our listeners right now may be surprised to hear how competitive those rates are alongside the great support and the alignment with a Christian ministry. Now, let's talk about that support of ministries for a moment.

How does that actually work at CCCU? Well, we specialize in ministry lending and banking. We offer property loans, equipment loans, operating accounts, and even high yield savings for reserve funds. With 68 years of experience and over a billion dollars in ministry loans funded, we understand the financial needs of ministry. So we're not just funding projects. We're partnering in gospel advancement. Our giving supports ministries that spread the gospel, combat human trafficking, protect vulnerable children, and provide disaster relief. In fact, we've given over six and a half million dollars to date back to Christian causes. Incredible.

Just a few seconds left. Aaron, how does somebody become a member of CCCU? Well, membership is open to Christians and Christian ministries nationwide. You can join through your affiliation with your church, ministry, or school, or you can join via our partner charity, Christian Alliance for Orphans, or even via a family member. With our new streamlined application process, it's never been easier to become a member of the Christian Community Credit Union family.

All you have to do is visit joinchristiancommunity.com to get started. Awesome. That's Aaron Cade. Aaron, we appreciate your time today. Thanks for stopping by.

Thank you so much, Rob. The website, folks, joinchristiancommunity.com. Discover how to overcome financial anxiety with faith. Visit faithbuy.com slash sparrows and begin your journey with look at the sparrows today.

Have you ever wondered where your money goes when you deposit it in a bank? Christian Community Credit Union believes in helping advance God's kingdom through everyday financial transactions. For over 67 years, they have provided values-aligned banking solutions to thousands of Christians and ministries. Consider Christian Community Credit Union as your banking institution by visiting joinchristiancommunity.com. Membership eligibility required. Each account is insured up to $250,000.

This institution is not federally insured. Thanks for joining us today on Faith and Finance. Hey, let me take a moment just to mention our Faith Buy partner program.

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First up is Jaquina in Chicago. Go right ahead. Hi. Thank you for taking my call. You're welcome. Thank you for calling. I was calling because I have a 401k that I have at somewhere.

I used to work about 15 years ago, actually at the University of Chicago. It's about, I want to say the last time I checked, about $15,000 in there, but I have not been at that job for over 15 years and I just left it there to grow. And I want to know, is it a good idea just to move it? I should move it to like currently I'm working and I have a 401k. Should I combine them or should I just leave it there?

It was actually kind of different because it's a third system. I think that stands for state and university retirement system. I think it's the same thing as a 401k. So I just left it there.

Should I move it to what I have or just let it grow there? Yeah. So your new job, you have a 401k there, correct? Yes. Okay.

Yeah. You know, I generally recommend that, especially with the kind of balance we're talking about. Not that that is insignificant, $15,000. It's a lot of money, but it's not, you know, 150,000 where you might get an advisor to manage that separately. So I think rolling that into your new 401k creates just a little bit more simplicity.

It's not another count to keep up with. You know, you can unify the investments. So whatever investments you've selected in your 401k, this new money would automatically go into that. And then when you get closer to retirement, you separate from your employer to whatever God has for you in that season of life, then you could consider rolling it to an IRA and having someone manage it for you, which is what I would recommend. Now, what you may find though, Jacqueanna, is that depending on exactly what type of account it is, it's probably a pre-tax retirement account, but it may or may not be a 401k. And therefore it may or may not be able to be rolled in to your existing 401k.

So your first question would be to your plan administrator with your current 401k, providing them the details on exactly what you have with your previous employer and asking that question. They will be able to quickly tell you yes or no. If the answer is yes, that's the direction I would go. Okay. Okay. Thank you very much. You are so welcome. Thank you for calling. Call anytime. Let's see. We're going to go to Illinois. Kathleen, you're next up on the program. Go ahead.

Thanks for your program. I have a stock in my portfolio that is like, it's like I have like a between 40 and 47% loss and it's got an F rating and it's a large part of my portfolio. So it's like holding it is not a good idea. I want to sell it, but I want to know what to do with it after I do that.

I have it in Schwab, so I don't know if it's like a fund that I could put it in that is better. You know, I don't know because I've got a lot sitting in there. Yeah.

Well, first of all, Kathleen, let me just affirm what you're saying. And that is, you know, regardless of how that stock is done, and I understand it's done very poorly, you have what's called a highly concentrated position. And that's not advisable because we're taking an inordinate amount of risk.

We have too much riding on one company. And so I like the fact that you're thinking about repositioning your portfolio, but in doing so, you really need some wise counsel in that because first of all, you want to make sure you take full tax advantage of the loss. And then secondly, you want to think about where is the best place for you to be invested moving forward based on your goals and objectives and risk tolerance and age and income needs. And I think that's really where an advisor will shine. Unfortunately, I can't give you those specific recommendations over the radio. We don't do that, but I wouldn't want to even if I could because I don't know all the other pieces of your financial life, and that's where an advisor will come in. So I'm going to encourage you to check with a certified kingdom advisor there in Illinois who can look at your overall situation and then perhaps actually help you manage that money.

You can find a CK on our website at faithfi.com. Thanks for your call today, Kathleen. Johnny is in Miami. Johnny, go ahead.

Yes, I appreciate you taking my call. I'm contributing to a employer 457B plan. I have those funds going into a Roth plan and I'm contributing the maximum amount.

I'm married, over 50. I'd like to know on top of that, can I also open up a personal Roth IRA and a traditional Roth IRA? You can, yes. So alongside a company-sponsored plan like a 457, 401K or 403B, you can also have an IRA and you can have both a Roth and a traditional. The key would be you cannot contribute more than the contribution limit for the year among all of the IRAs that you have. So for 2025, what is your age?

Sixty-three. Okay, so you would be able to use the catch-up provision over the age of 50, which would allow you to put in a total of 8,000. So in addition to whatever you're putting in the 457, you'd be able to put in up to 8,000 across any number of IRAs. So if you wanted to put 4,000 in a traditional and 4,000 in a Roth, you could do that.

You want to put 8,001, nothing in the other. The key is across all the IRAs that you have, a Roth or traditional, you can't put more than $8,000 as somebody who's 50 or older in the year 2025. Okay, so this 8,000 does not include in my 457 Roth. Right, the 457 Roth is completely different. That's a company-sponsored retirement plan or a government-sponsored plan, but it's different. It's just the Roth variety, but it's different from an individual retirement account Roth, and so you can have both, yes. Okay, right, so the personal Roth IRA and a traditional combined can only be up to 8,000 for the personal. Yes, for the IRA, which I stands for individual, yes, so that's not the company's plan. The IRA, individual retirement account, the total for the year this year happens to be 8,000 if you're 50 or older.

And the key there would be you've got to have a modified adjusted gross income under 150,000 in order to be eligible to put it into the Roth IRA. Okay, thank you very much. Appreciate it.

All right, absolutely, sir. Thanks for your call today. Back with your questions on any financial topic after this.

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Let's go to Fort Lauderdale, my hometown. Mary, how can I help? Hi, Rob.

This is Mary, just like you said. You have such a pleasant voice. My question is, I have a piece of land that I would like to sell, but I would like to sell it to more of a developer, maybe like someone that would be developing a spa or hotel or something along those lines. So I wanted to find out or know, where can I go to access that or look for developers that would be interested in purchasing some land to do some better development?

Sure. Yeah, it's a great question. And you know, this is not obviously your typical real estate transaction. And so I think, obviously, this is something that's going to take a little bit of legwork. You know, I think the first issue is just, you know, what is your land's potential? Developers are going to, of course, look for land with certain attributes, you know, location, but also the zoning and the size, their development potential. And so I think understanding, you know, what makes your land appealing will help you target the right developers. You know, I think you could certainly start researching potential developers, they're not all the same, some focus on residential, others commercial, and so forth.

I would work with a professional. And you know, I think that can really help you streamline the process, connect you with buyers and maximize the sale price. So I would be looking to hire a realtor who specializes in raw land or development sales, they'll have a network of developer clients. And so that really, I think would be a key next step for you.

As you make you know, the next steps here. You know, you could also connect with an attorney, a real estate attorney, you know, who can help you review offers and contracts, but your real estate agent should help with that. If you have a larger or a trickier parcel, you know, a consultant could advise you on boosting the value. But I think again, that agent could be the starting point, the realtor, as long as that somebody who specializes in these types of sales, I think would be would be really important.

So that would be where I would go next. And you know, may take a bit to call around and find out who are those realtors that specialize in this area. Obviously, Fort Lauderdale is a hot real estate market. And there's some some incredible developers down there doing a lot of great work.

And they're not making any more Fort Lauderdale real estate right there near the ocean. So if you have a unique parcel that's suited for a developer, I suspect you'll have a lot of interest. But given that this is something that, you know, you're not accustomed to, you've not done it before, I think that's where having some wise counsel walking alongside you could be key. Okay, and then do you think I would need to convert, make a company set up a company? Yeah, you certainly may, it's going to come down to how you actually structure the deal.

You know, there's a number of ways that you can go about that, in terms of, you know, ultimately how that is sold. You know, in some cases, you'd make just an unconditional sale, where it's a quick cash sale at the current value, no strings attached. You know, in other cases, it would be a conditional sale. There may be an option agreement, it could even be a joint venture.

You know, where you're sharing in the profits once the project's built, higher risk there, but you get a higher reward. So ultimately, that's going to come down to, you know, what you ultimately do. If it's just a straight sale, you know, you may not need to worry about that. One thing to consider would be if you want to do any charitable giving, as a result of the proceeds, you might want to give a portion of the property equal to the giving you're planning to do to a donor advised fund at the National Christian Foundation prior to the sale, and then that portion wouldn't have any capital gains tax.

But apart from that, you know, you once you have a, you know, you know, you're going to proceed in this direction, you could check with a CPA, you know, who could advise you on the best tax structure and legal structure. Okay, thank you so very much for that. It has been very helpful. Good. I'm so glad. Thanks for your call today and all the best to you, Mary. Let's go to Lake Bluff, Illinois. Hi, Maureen.

How can I help? Hi, my husband died an excruciating death two years ago, and he was ill probably from 2016 on until he died. So his 401k converted to with Inspira into a IRA. And I don't know what the first question is.

I don't know what a cash sweep option is. The second is they only had three beneficiaries. I have four kids, so I crossed out the line.

I made the fourth one an equal distribution in the event of my death, which would be 25% each. And the last question, probably the most important is, unfortunately, my husband didn't file taxes from 2016 to 2022. And so the last question says, is there an IRS withholding? And technically there is because of having to try to get everything done with his, you know, with the business, but notices have come to both me and my deceased husband. Obviously with increased penalties and interest and everything else, it's really a mess. And we've lost three accountants, two that couldn't handle it and one through death. So we still haven't secured an accountant. Do I have to list the fact that there is a withholding because I was on the IRS notices myself? Somebody told me I didn't have to do that because I didn't have an income.

It was all his income. Yeah, yeah. Well, a lot of questions there.

And I think, and I'm so sorry to hear about your husband's death. Yeah, I mean, there's just a lot of pieces here, far more than I'd want to try to advise you on with our short time here together on the radio. Just given the complexity. It's not that I don't want to help you. I just want you to have somebody who can look at this.

And I know you've tried and others have passed and I can understand just due to the complexity of this. But I think you need to find that trusted advisor who can walk through this with you on everything from the withholding to making sure that the final tax return is filed and how you need to handle that as you're now going to be filing single. And we've got the non-filing. Did you all file separately? So you did file, but he did not.

Is that the way that it worked? No, he filed jointly always. Okay.

So the two of you didn't file returns from 2016 to 2022? Correct. Yeah.

Yeah. And then the person that did my thing last year, basically, was what we try to secure what his income was and everything else. But basically, I asked her if there's a deadline. And she said, because all I get is Social Security now.

She said, I didn't have to file. Okay. Yeah. So let's do this. I'm going to have you hold the line and I'm going to personally get you connected with a CPA that could walk alongside you who's a Christ follower who could potentially help you just kind of navigate all this, especially given the significant number of years there where you were not filing, perhaps to get all this, you know, corrected and on track and could advise you on these issues that you're asking about. So let's do this. If you'll hold the line, Maureen, I'll have my team get your information and we'll get you in touch with the CPA. Okay. Thank you so much. I really appreciate it.

Yes, ma'am. Lord bless you. We appreciate your call today. Well, if you want to support our work here at Faith and Finance, becoming a FaithFi partner would be the way to do that. There's already eight that have become partners just today. And as a thank you, we send you four copies of our magazine, Faithful Steward, all of our studies and devotionals.

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