We chase money thinking it'll bring security. We seek success hoping it'll satisfy. But Ecclesiastes exposes the truth. Wealth alone never delivers. Lasting contentment isn't found in what we own, but in a personal relationship with wisdom himself.
Jesus. FaithFi study wisdom over wealth will help you break free from empty pursuits and discover what truly lasts. Purchase your copy today or place a bulk order at faithfy.com/slash shop. He who has ears, let him hear. Matthew thirteen, nine.
I am Rob West. Those were Jesus' closing words after telling the parable of the sower, a story that invites us to listen carefully, not just with our ears, but with our hearts. Today we'll look at this story and what it reveals about the heart behind our finances, especially the warning about the deceitfulness of riches. Then it's on to your calls at 800-525-7000. That's 800-525-7,000.
This is Faith in Finance, biblical wisdom for your financial journey. While the parable of the sower appears in Matthew 13, Mark 4, and Luke 8, it begins with a farmer scattering seed which falls on four types of soil. Jesus later explains that the seed is the word of God and the soils represent different heart conditions.
Some hearts are hard, others shallow, some are fertile and ready. But one soil in particular draws our attention today, the seed that fell among thorns. In Matthew 13, 22, Jesus says, As for what was sown among thorns, this is the one who hears the word, but the cares of the world and the deceitfulness of riches choke the word and prove it unfruitful. Let's break that down. First, Jesus points to the cares of the world, the daily anxieties and distractions that can crowd out our trust in God.
Then he adds, the deceitfulness of riches. It's not wealth itself that's the issue, it's the lie wealth tells us that more Money will bring more peace, that possessions equal security, and that success means significance. The Bible consistently warns us about that lie. Proverbs 11:28 says, Whoever trusts in his riches will fall, but the righteous will flourish like a green leaf. And Paul reminds Timothy in 1 Timothy 6:17, Command those who are rich in this present world not to be arrogant or to put their hope in wealth, which is so uncertain, but to put their hope in God.
Wealth deceives us by offering the illusion of control and independence. It tempts us to believe we're self-sufficient. And when we buy that lie, we slowly stop depending upon God. Like thorns in a garden, worldly cares and the lure of wealth take root in our hearts, slowly crowding out our affection for God. The space once reserved for trust and obedience becomes overrun with distraction and self-reliance.
It's like C.S. Lewis put it: prosperity knits a man to the world. Feels like he is finding his place in it, while really it's finding its place in him. You might be saving diligently, investing wisely, and even giving regularly. But if you're trusting in your portfolio more than God's promises, or if your finances have become a source of anxiety, then it may be time to do a heart check.
What kind of soil are you cultivating? When unexpected expenses hit, what comes first? Prayer or panic? When you think about the future, is your hope grounded in your retirement account or in the one who holds all things together? Jesus said, the seed among thorns becomes unfruitful.
The word doesn't lose its power, but when wealth and worry take over our hearts, we stop responding to it. Outwardly, we may look fruitful, but inwardly, our love for him is being choked out.
So, how do we respond?
Well, Jesus points to the solution just a few verses later. In Matthew 13:23, he says, The good soil is the one who hears the word and understands it. He indeed bears fruit. fruit and yields. But receiving God's word deeply isn't a one-time event.
It's a lifelong process of cultivating the soil of our hearts. It means creating space where God's truth can take root, thrive, and grow without being overtaken by competing desires. That's how fruitfulness begins and continues.
So, with that being said, here are three simple practices to help you cultivate good soil in your finances. First, prioritize your giving. Start with generosity, not as an afterthought, but as an act of worship. Giving reminds us that money is not our master and that we trust God to provide for us. Second, check your emotional temperature.
If your peace rises and falls with your financial circumstances, that's a signal to lean into God's word more than your wallet. And number three, rethink your financial goals. Ask yourself, what am I building and why? Is your financial plan aligned with kingdom purposes, or is it just chasing comfort or status? As Dallas will.
Billard said, the main thing God gets out of your life is the person you become. That includes how you handle money. Generosity, peace, and contentment are fruits of a life rooted in Christ, not one choked out by wealth. At the end of the day, remember that the condition of your heart matters more than the condition of your accounts. If you want to be fruitful in your finances and faithful in your walk with God, start by asking, What am I trusting in?
Let the answer lead you back to Christ because only in Him will your life bear lasting fruit. All right, your questions are next: 800-525-7000. We'll be right back. What matters most to you when selecting a financial advisor?
Someone who shares your biblical values? How about someone who will take the time to explain your financial options clearly? Certified Kingdom Advisors meet high standards of competence, integrity, and biblical training, equipping them to offer financial advice grounded in God's Word. No more wondering if your advisor truly understands what's important to you. Find a certified kingdom advisor near you at faithfi.com.
Just click Find a Professional. Faith in Finance is grateful for support from Sound Mind Investing. For more than 30 years, they've offered financial wisdom for living well. SMI provides step-by-step guidance for do-it-yourself investors, from those just getting started to those getting ready for retirement. More information, including a short video webinar on profit and peace of mind no matter what's happening in the market, is available at soundmindinvesting.org.
Great to have you with us today on Faith and Financed. We're so glad you're along with us today. Looking forward to taking your calls and questions today. The number 800-525-7000. We've got lines open today.
That's 800-525-7000. We're going to begin in Chicago today. Hi, Bernie. Go ahead. Yeah, my question is I I have a two-flat apartment building I'm going to sell for $650.
I have one that I'm interested in buying for $640. But I'm wondering what else would I have to pay Other than the you know, the purchase price, like To buy and sell at the same time. What am I looking at as far as taxes or anything? Sure. Are you doing a 1031 exchange on this, Bernie, where you push any capital gains forward to the second property?
Uh I didn't know about that. The campaign. Yeah, I didn't even know that. Yeah, that's probably something to think about because when you sell a property, if it's appreciated and this is not your primary residence, this is an investment property. You have the ability to push that forward through what's called a 1031 exchange.
You'd need to meet the IRS rules and deadlines. You have to identify it in a certain period of time, and then you have to close on it within 180 days of the sale of the other property. But if it's a similar type of property, you would essentially be able to take any capital gains that you owe where you've had an increase in the first property, which would normally be subject to capital gains because it's not your primary residence, and you can essentially roll that over into the next property. You will have to pay it at some point, but the nice thing is that it gives you more of your capital to move into that next property because it's a similar type of property.
So that would be something to look into. On the selling side, I mean, you'd have the The real estate fees and the commissions, usually 5% to 6%. Closing costs, you're going to have escrow fees, transfer taxes, recording fees, any mortgage payoff fees, although those aren't very common. And then when you're buying, you've got any loan origination, usually 1% to 2% of the new loan amount, appraisals and inspections, title insurance and legal fees, any environmental or zoning reviews, which are sometimes required for older buildings, and then escrow reserves.
So those would be the general kind of list on the selling and the purchase side. I think the key for you is to perhaps look into that 1031 so you could get more of your capital rolled into that next property without having to pay any taxes. Oh, I see. 'Cause it the property was left to uh my brother and myself from by our mom, and there's no mortgage on it. Got it.
Okay. Yeah.
So there's probably not any capital gains there to speak of then because did she pass away recently? Uh it's been fifteen years now.
Okay. So you've held it since she passed? Yeah, we've been living there, my brother and I. We lived there our whole life and we just stayed in the property. He lives upstairs, I live downstairs.
Ah, okay. Yeah, so this is your primary residence. And then so on the sale, you would check with your CPA. You should be able to take each on your own portion, you know, the equivalent of your own exclusion there. Because when you sell your primary residence, as long as you've lived there two out of the last five years, you'd have between $250,000 and $500,000, depending on whether you file single or married filing jointly, of gain that you could exclude from any capital gains taxes.
And so it could be that you don't have any capital gains, and therefore the 1031 is unnecessary. Oh, okay. And this is usually one and two percent is what the real estate takes for selling and buying. Is that usually, no, usually five to six percent for the real estate commissions. And the question would just be whether you know you pay uh all of it uh as the seller or whether the buyer's agent pays a portion of it.
Uh, but usually that all-in fee is five to six percent, you know, for the sale. And then when you're buying, uh, if you're not using a mortgage, then you wouldn't have that, but you'd have uh you know the expr appraisal and inspection, the title insurance, and and legal, and then any escrow reserves. Oh, I see. And then that closing costs, is that what that would be? Yes, sir.
Yeah.
So if you don't, those would all be a part of the closing costs. The only additional thing you would have is if you didn't have enough equity to roll in to your next purchase and you had to take out a mortgage, then you'd have the loan origination fee. But that's generally the list of expenses that are related to closing costs.
So hopefully that helps. All the best to you in this sale and eventual purchase of your next property. We appreciate your call today and call anytime. Let's go to Tennessee. Hi, Kevin.
Go ahead, sir. Yeah, hi Rob, a question about values investing. I um before I had this um kind of epiphany, I I was invested in some uh some index funds and mutual funds, which I found out later are invested in some companies that sponsor things I don't agree with. I'm not reinvesting in these funds. Am I ethically okay keeping the money there if I don't reinvest the dividends or anything like that?
Do you understand what I'm trying to say? Yeah, I do. And I think this is a personal conviction matter. I mean, that's my perspective on it is that, you know, this is a Romans 14 issue. Let each one be fully convinced in his own mind.
So the question at hand is, you know, when you're investing, you're investing through the secondary market.
So you're buying shares of a company. You're a partial owner. And, you know, it's different than you walking into a name any company and buying their products and services. And there's some believers that have the conviction that, hey, if I'm deploying my capital, meaning I'm a percentage owner of this company, I want to make sure, regardless of what impact my purchase of those shares on the secondary market from somebody else, regardless of what impact that has on the company directly, I just don't want to be a part owner of anything that conflicts with my values, either their primary business activity or what they'd use their corporate profits for. And the good news is you have that option now.
To invest in faith-based investments that are screening companies out that would be misaligned with Christian values, screening companies in that are particularly promoting human flourishing, even doing corporate engagement where possible, all around the idea of still creating value for the shareholders so that you can get a reasonable rate of return at or better than what you might expect anywhere else. And that's possible today. But I think that decision as to whether or not you would invest in what I'll call a traditional sense, where you just buy based on long-term value creation and not looking necessarily at values alignment versus a specifically stated faith-based investing approach where you're either avoiding or embracing or even engaging companies aligned with your values, I think that's ultimately a personal conviction issue between you and the Lord. Yes, no, I hear you. But I'm wondering about and that's what I'm that's the approach I'm going to take in the future.
But like I'm wondering about shared like in the QQQ, they invest in some tech companies, which do some things I don't agree with. But since I've already invested the money, Am I actually supporting those same causes now? I mean, this, I realized this after the fact.
So, like 10 years ago, I invested in the Q's. And so I'm wondering if that money is actually being used to like promote Abortion and, you know, religious. No, I mean, you holding their shares now that you've already bought them is not doing anything for the company. You're collecting the dividends.
So you're the beneficiary of the company's earnings. And so ultimately, I, again, I would go back to this as a conviction matter. Do you have a conviction that accepting dividends, meaning parts of the profits of this company that's being paid out from a company you don't disagree you disagree with? Are you comfortable with that? I'm not saying you should be or you shouldn't be.
I think that's between you and the Lord. Is there a direct benefit to the company of you continuing to hold the shares? I can't think of one. There may be one that I'm not thinking about, but I can't think of one. But as to whether you should continue in that direction, I think that's between you and the Lord.
Does that make sense? Absolutely. Thanks so much, Rob. All right. God bless you.
Hey, one more segment. Your calls on anything financial right now at 800-525-7000. Stick around. We're grateful for support from Guidestone, whose diversified suite of investment solutions align with Christian values to create positive change in the world. More information is available at guidestonefunds.com/slash faith.
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Or visit faithfi.com forward slash Lebanon. I'm so glad you're with us today on Faith and Finance. I'm Rob West. We're taking your calls and questions today on anything financial. If you have a question, something you're wrestling with in your financial life, go ahead and call right now.
We've got some lines open. You'll get right through. The number 800-525-7000. Let's go back to the phones, Akron, Ohio. Hi, Constance.
Go ahead. Oh, hi. Yes. I have an IRA, but it's also in an annuity. I'm wondering if there are any benefits to having it into an annuity?
Because I thought I was going to change it from an IRA into an annuity, but he says that it's good both, so I don't know. And are there any benefits in that? Yeah, not everyone needs to move their IRA into an annuity. Here's the benefits of doing that and why someone might consider it. First of all, guaranteed income.
So you can convert your IRA into a reliable monthly check for life. And that's what a lot of people are looking for. Second would be protection from market losses. That is the stock market and the bond market.
So with a fixed or a fixed indexed annuity, by putting your IRA in there, your principal then is shielded from market downturns, which you would not have if you had an IRA outside of an annuity. And then the third would be what you might call longevity insurance.
So some annuities offer lifetime payouts, even if your IRA balance runs out.
So what are the downsides?
Well, you've got redundant tax benefits.
So an IRA is already growing tax deferred.
So putting it into an annuity doesn't add any extra tax advantage. The other downsides are the fees. They come with higher fees than traditional IRAs, especially the variable annuities, and then less flexibility because you usually can't access the full balance like you can with an IRA if you needed to without penalties. And once you annuitize it, if you convert it to an income stream, you certainly can't access the full balance.
So, those would be the reasons that folks wouldn't do it. Bottom line is: if you're looking for predictable income or you have a fear of outliving your money, or you want to lock in some security, that's where the IRA annuity comes in. But if you really prefer control or flexibility, growth potential, the ability to access your money in larger sums, then you'd want to keep your IRA outside of an annuity and then just invest it directly into mutual funds or ETFs, that type of thing. Does that make sense? Yes, it does.
Mm-hmm. But okay, well, that acts as growth in my annual income. Do I have to declare that on my income tax for 2025? If you take it out, when the money comes out, it is taxable. It's tax deferred while it's inside the IRA or the IRA annuity.
But when it comes out, then it's taxable.
Now, you still have to take required minimums with an IRA that's in an annuity starting at 73 or 75 if you were born at 1960 or later. But how they're handled depends on how the annuity is set up. If you haven't turned the annuity into income yet, therefore it's still growing, then you'll take the required minimums based on the account value, just like an IRA. You would have to withdraw separately to meet the minimum. If it's already paying out, if you've done what's called annuitization and you've converted it to a lifetime income stream, then those payments usually count toward your RMD as long as you meet the minimum required amount.
But not all annuities automatically satisfy those RMD rules.
So it's important to work with your advisor or. Insurance company has that money in order to make sure you're at least reaching that minimum. And it's taxed as ordinary income, just like regular withdrawals from an IRA. It went in tax-deferred, meaning you didn't pay tax on it.
So now the IRS wants its share when you pull it out. Harry, thank you, sir.
Okay, Constance, thanks for your call today. Lord bless you. 800-525-7000. We've got some lines open today. Go ahead and call right now.
You can get right through. We've got several lines open, in fact. 800-525-7000 to Florida. Hi, Nick. Go ahead.
Thank you for taking my call. I had a monster box of silver eagles that. are that I bought in 2015, and you know, never opened. You know, the boxes factory band had never been circulated. And I'm wondering if I'm better off.
Just letting that stuff sit and collect dust? Or should I be better off selling it, taking the money, and investing it in either putting it in a higher yield? Like a these 4% or so savings accounts or investing and opening a personal investment account, like a investing the money. Yeah.
Let me ask you, what is this the total value of it, if you know? And I realize it's just been sitting there, so you may not have priced it lately, but how does that fit into your overall total investable assets? What percent? Totally well, I ha I already have a 401k. I guess if I had to value it, I think I'm probably around it's probably doubled since I bought it.
So I think I paid about eight or nine grand and But investable, like I said, I already have a 401k, and this is really the only other money I have that I'm going to invest. That's it. Yeah, very good.
Well, you know, I think bottom line is, yeah, it has done well. I think I'm just looking it up in 2015. You probably bought it when silver was about $15 an ounce. You know, it's sitting here at about $36, $37.
So that's pretty. Pretty good in terms of the overall return. You know, you're looking at about 130, 135%. You know, when we stack that up against the SP 500, you know, it's done a little better and quite a bit better, actually. SP 500, if you include dividends, I'm just looking for that same period, about 10 years, 2015 to 2025, is up about 230%.
So it's outperformed silver in both growth and total return, especially when you include more dividends. And silver is more volatile. It has sharp swings and longer stagnation periods, and it doesn't have any income.
So overall, I like a properly diversified stock and bond portfolio better. And bottom line is, if you would have had that same money in the SP 500 or some broad market index, you would have performed better for sure when you put the total return in place. Is it bad to have some pressure? Precious metals. I prefer gold to silver, but you know, it sounds like this is a relatively small portion of your total investable assets when you factor in your 401k.
So I'd be okay with that. I'd say, you know, I like a 5% allocation to precious metals. Again, my preference is gold, but you'd take the physical gold, kind of like you did with these, you know, Silver Eagles, and keep it for life and pass it down. And then if you wanted to do another 5%, I'd use probably an exchange-traded fund. But at the end of the day, I think you would probably do better long-term in stocks and bonds.
And so if you're not looking to keep this and pass it down, I'd probably sell it and get that money invested.
Okay, and then as far as doing that, doing the latter, I can get on your website and find one of the Kingdom Advisors and help me with that? You know, not really, because most of them don't. You know, you really need a reputable gold or precious metal dealer, somebody who could get that sold for you. The CKs could help you redeploy any of your investments. No, I'm an actor.
Oh, got it. Yes, sir. Absolutely. Just go to faithfy.com, click find a professional, and I'd interview two or three CKs there in Florida, and you can find the one that's the best fit. Hey, Nick, thanks for your call, sir.
God bless you. We appreciate you being on the program. Thanks to Devin, Sandy, Taylor, and everybody here at FaithFi. We'll see you next time. Bye-bye.
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