Are you looking for a financial professional who shares your Christian values and offers advice you can trust? Certified Kingdom Advisors are experienced financial, legal, and accounting professionals who have completed a rigorous certification program rooted in biblical financial wisdom. They meet high standards of integrity, competence, and stewardship, helping you honor God with all He's entrusted to you. To find a Certified Kingdom Advisor in your area, visit FaithFi.com and click Find a Professional. A joyful heart is good medicine, but a crushed spirit dries up the bones.
Proverbs 17:22. I am Rob West. As we wrap up our series on the temperaments and how they affect our financial decisions, we're turning the tables a bit. Today, Kathleen Edelman, who's been our guide through this journey, is taking the host seat to interview me about the yellow temperament. And then it's on to your calls and questions at 800-525-7000.
That's 800-525-7000. This is Faith in Finance, biblical wisdom for your financial journey. Kathleen Edelman is the author of I Said This, You Heard That, and the creator of a powerful video series and workbook designed to help people understand how their temperament shapes the way they communicate. Kathleen, I really appreciate you taking the time to actually do this entire series with us. Oh, it's been great.
It's been interesting, fun, right? We have to get all the temperaments in there, right? Exactly right. And I'm thrilled you're going to take the host role today. That's going to be a lot of fun.
So, before we hand over the reins to you, I'd love for you just to do what you've done for the last three episodes, and that is give us a quick overview of the four temperaments. Perhaps for anyone just joining us or needing a refresher.
Okay, so temperaments date all the way back to Hippocrates. It's understanding how we're wired to think, speak, and listen. Each of the four temperaments speaks its own language. The red coleric speaks the language of power and control. Mm.
It's an extrovert that's task-oriented. The blue melancholic speaks the language of perfection and order. An introvert that's task-oriented. The green phlegmatic speaks the language of calm and harmony. An introvert, believe it or not, that's people-oriented.
And the yellow, sanguine, speaks the language of people and fun, an extrovert that's people-oriented. And yours truly, right? And yours, truly, the yellow temperament. That's exactly right. All right.
Well, I guess this is where we switch roles and you get to ask the questions.
So let's dive into what it means to be a yellow, which is my temperament.
So, and I love this.
So, when you first took my assessment and you found out what you were. Tell me a little bit about what you thought about that. Yeah, I mean, I think honestly, it made me laugh a bit because it just nailed me. Julie, my wife says, I'm the how and he's the wow, which, you know, perfectly captures me. I think it made me a little uncomfortable, but in the best way, because it showed me I could grow.
I realized why I love being around people. You know, I'm always looking for the positive. I'm the glasses half full kind of guy, and I have a hard time slowing down. But I love the fact that it gave me language to talk about how I'm wired, not just with others, but even with my own team and even my family. I think at the end of the day, it gave me more self-awareness and a level of grace just to appreciate how God has uniquely wired me.
Yeah.
So most yellows, like you said, aren't surprised. You know, you've heard your whole life. You're so much fun. You have so much energy. You bring so much joy.
You're inspiring to others. You know, yellows thrive on that connection, laughter, being liked. And I know, Rob, you wear your heart on. Your sleeve. That's what yellows do.
And they often struggle to stay focused. They really struggle with interrupting, but the temperament frameworks helps yellows understand their joy as just one of their many strengths, just like you said, and that their weaknesses are something they can manage. That's right. They don't have to ignore them.
So here's something I want your listeners to know is tell us how the yellow temperament shows up and how you handle money. Yeah.
Well, as you know, yellows tend to be spontaneous.
So fun money isn't a category. It's a lifestyle. I love using money to create experiences and memories. I love giving, but sometimes I can find that I give more emotionally instead of strategically.
So I've had to learn that wisdom is a part of generosity. I've also had to put systems in place.
So automating savings, setting limits, using envelopes. It was really why I was so excited about our team building the FaithFy app because I needed a system to control money. Because again, I look at the money through the Lens of money is a tool and it's to be used to enjoy people and experiences and things. And I can do that by saying, well, sure, we can afford that without even checking the balance. Exactly.
And so you let me just summarize: like the yellows often view money. As a means of fun and connection. You know, and they tend, just like you said, to be generous, but they can be impulsive with their spending. Planning and restrain makes them feel limited.
So just a simple, flexible budget. with some accountability. With something to look forward to, just like you said, helps them stay on track without feeling that restriction. We're talking temperaments today, and I'm on the hot seat as a yellow Kathleen Edelman's here, and we've got much more just around the corner. Don't go anywhere.
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With me today, my friend Kathleen Edelman. She's the author of I Said This, You Heard That, and the creator of the powerful video series and workbook designed to help people understand how their temperament shapes the way they communicate and really love others well, right? Oh, absolutely. It changes every relationship. Yeah, we've been moving our way through each of the temperaments represented by colors.
There's the red, choleric, there's the blue, melancholic, the green, the phlegmatic. Today, the yellow, the sanguine temperament. That's me. I love people and fun, extroverted, people-oriented. I also love to use money as a tool to enjoy, to have experiences, and budgeting.
Well, you might be surprised to know it's not my favorite thing. As a money guy, most people just assume I love budgets, but my temperament would not have me to do that for. Sure. And, you know, I think one of the things I've come to appreciate is that, you know, financial stewardship isn't boring. It's actually the foundation that allows us to be more generous and glorify God in the process to use money the way God intended as a good gift, but within the boundaries.
Oh, and what I love about what you just said, I do not advocate positive. putting people in box or labeling them. And you are a perfect example. This yellow fun guy that's in finance, you know, any temperament can do anything. Yes.
So, being a yellow, how do you think that helps or hinders good financial management? Yeah, well, I think it does both. It depends on the day and whether Amazon is involved. But, you know, it can hinder things if I let my spontaneous, people-loving side drive all the decisions. I mean, a gift for everyone I've ever met, right?
But I think it can also help. I mean, we're, as you know, optimistic. That means us yellows believe that financial goals are possible. We bring energy to what could otherwise feel like a grind. Oh, yeah.
We're also highly relational.
So we connect finances to purpose.
So I love helping people. I love giving. I love making memories. If it's those things, I'm all in. I guess what I've learned, though, is that I need structure with joy baked in.
Yeah.
And I think that's the secret sauce. If the plan feels Lifeless, I'm going to bail. But if I know that the plan is leading to something that's ultimately going to bring celebration or generosity or vision, I'm willing to go on the journey. Yeah.
You know, yellows bring that energy and optimism to the table. You know, which makes them great motivators, but they may avoid details or delay tough decisions, right?
So they benefit from using flexible planning tools. For example, like you mentioned, the envelopes love it, especially if it's categorized. Hey, we're going to get a dinner with friends, is written right on the front of the envelope, right?
So yellows are uniquely wired to live in the moment.
So long-term goals can be almost abstract to them.
So framing financial wins in terms of freedom and short-term wins will absolutely keep them engaged. Right? Yeah, no doubt. I see that in my life.
So let's talk about the innate needs.
Okay. The yellow's innate needs are approval, being liked for who they are without needing to change, acceptance, being invited or included, attention, having your full focus, especially eye contact, and affection, being noticed or acknowledged.
So when these are met, that yellow is cheerful, connected, inspiring. They light up the room. They're fun to be with. Unmet, they can use charm and flattery in an unhealthy way. And we have to remember that a weakness is a weakness, but a strength taken too far can also become a weakness.
So how do you feel about that? When you hear these, do they sound familiar? Can you relate? Do they resonate you in the financial world? Yeah, I mean, this totally hit home for me because I thrive, as you said, on approval and acceptance, not in a shallow way, but in a tell me I matter to you kind of way.
I light up when I feel included and valued.
So whether it's in a conversation, a team, or just even being invited to lunch. Encouragement is like oxygen. To a yellow, you know, you say, I love how you bring joy into the room and we'll be floating for days.
So, you know, on the flip side, if I feel ignored or dismissed, it hits hard. And it's not just about attention, it's about connection. Exactly. So, I see that in my life too. And I think an understanding about myself in this way has helped me really to stop chasing those needs in unhealthy ways and instead build relationships and rhythms where they're met in life-giving ways.
Oh, yeah. And the yellows, you know, money choices that reflect their value, not just the moment. You know, this helps gain attention for the yellows' wisdom and not their impulsivity, which can happen. Naming the innate needs helps them pursue healthy connections. You know, yellows shine brightest when their joy isn't tied to spending, but being fully seen for who they are, right?
So it helps. Others understand their desire to bring joy isn't shallow. It's deeply wired in who they are. Oh, yeah. I mean, I certainly see that.
Yeah.
So, what happens, do you think, when you're in a money conversation? You know, how would you say the yellow temperament shows up for that? Yeah, I would say if the conversation's about dreams or goals or generosity, I'm all in. You know, I'll have 10 ideas before we finish the sentence. But if it turns into a spreadsheet review or a line-by-line budget breakdown, I'm suddenly thinking about planning a vacation in my head.
You know, I naturally want to keep things positive.
So, if there's tension or conflict, my instinct is to smooth it over or change the subject on occasion. And sometimes instead of dealing with the issue directly.
So, I've noticed, you know, I tend to avoid hard money talks. If I think someone might feel disappointed in me, that fear of disapproval can get in the way. But I've learned over time when I stay engaged. And bring my joy with structure to those money conversations, they actually become powerful moments for unity and clarity and shared vision.
So I try to prepare ahead of time and remind myself it's really ultimately about stewardship so that I'm present and grounded.
Well, you learned that skill of preparation because yellows aren't necessarily wired for that. You know, yellows tend to lighten the mood. Or change the subject, just like you said, when things get tense. They're great at vision casting. And being inspiring, but they have a problem sometimes diving into the details or especially follow-through.
So, using their strengths of energy and encouragement can focus on that shared goal you said. They thrive when the conversation is framed positively. You know, they don't like things to feel hopeless, just like you said.
So, when you speak to a yellow, we wanna refrain from ever starting a conversation in the negative. Right? That's well said. Right? So, do you think the yellow temperament?
of facts How do you interact with callers on your program? Oh, 100%. Yeah.
I mean, it definitely shapes how I show up on the show, and it's why I love doing it every day. I mean, I'm a natural encourager.
So when someone calls in, my instinct is to make them feel seen and heard and uplifted, especially if they're anxious or overwhelmed. I want people to leave the conversation with hope, not just answers.
So, what I hear you saying is you're really listening to your caller. Have you felt like you could implement the other temperaments? Like when you hear a caller, are you being able to identify their temperament and speak their language? And that's why your book and workbook has been a game changer for me because now I listen differently to how they're responding to me. And I'm starting to pick up by the end of the call their temperament.
And now I can color my language.
Now you can speak their language. Yeah, I can color my answers through that. That's awesome. It's a game changer.
So I love the fact that you're already applying it.
Well, it's been a game changer for me. Thank you, Kathleen, for your work on this and for taking the time to actually work through each of these temperaments together. Thank you. It's been fun. We're out of time today.
That's Kathleen Edelman. She's the author of the featured article on temperaments in the latest issue of the Faithful Steward magazine. If you'd like to receive a copy each quarter, become a partner when you go to faithfy.com/slash give. We're back with your questions on any financial topic after this. Stay with us.
Are you looking for a financial professional who shares your Christian values and offers advice you can trust? Certified Kingdom Advisors are experienced financial, legal, and accounting professionals who have completed a rigorous certification program rooted in biblical financial wisdom. They meet high standards of integrity, competence, and stewardship, helping you honor God with all He's entrusted to you. To find a Certified Kingdom Advisor in your area, visit FaithFi.com and click Find a Professional. We are grateful for support from Timothy Plan.
Since 1994, Timothy Plan has shared good news with investors and advisors by offering faith-honoring mutual funds and exchange-traded funds. More information is at TimothyPlan.com. The investment objectives, risks, charges, and expenses are contained in the prospectus and summary prospectus available at TimothyPlan.com. Mutual funds distributed by Timothy Partners Limited and ETFs. Distributed by Foreside Funds Services LLC.
Investing involves risks, including possible loss of principal. Great to have you with us today on Faith and Finance.
So glad you're along with us today. Looking forward to taking your calls and questions. Here's the number to call to get in on the conversation because the rest of the show is yours. 800-525-7,000. That's 800-525-7,000.
Perhaps there's something you're just struggling with in your financial life. Maybe you're looking to pay off some debt once and for all. You just can't make that budget balance. You feel like there's more month than money in most cases. I get it.
It's real. Let's talk about it. Maybe you're trying to figure out how to manage your investments and what is the proper approach in this market. Let's talk about whatever is on your mind today. Again, that number to call with any financial question.
Lines are open. 800-525-7,000. No waiting. You'll get right through 800-525-7,000. Let's go to Indiana.
Hi, Stephanie. Go right ahead. Hi. I am wondering, I'm about three and a half years from retirement, and I have probably more traditional IRA funds than I do Roth, and I'm wondering. If you would recommend taking the tax burden now and converting those traditional funds to ROS funds.
To avoid taxes in retirement? Yeah, it's a great question, and I think one worth looking at. You know, I would say it can be.
Sorry to not provide a definitive answer. It depends, though.
So it means, as you said, you will pay the taxes now as you convert, whatever amount you convert. If you're retiring in three years, you may not have enough time to recoup those taxes unless you'll be in the same or higher tax bracket in retirement. You can pay the conversion tax with cash outside the IRA.
So you would need to have that cash available. And then you plan to let that Roth grow long term, even in retirement. Most people earn less in retirement.
So therefore, you will drop down.
So the risk is, you know, you're at the peak of your earning potential right now. Let's say you are. We haven't talked about that. And you're paying all that conversion now while you're at a higher bracket. Only to drop down into a lower bracket when you hit retirement because you're no longer working.
And then, you know, you would have been able to slowly pull that out at a lower bracket.
So that's the one consideration. The other is: do you have the cash available? And then, thirdly, are you going to keep it invested in a way that would allow it to grow where you can take advantage of it? Does that all make sense? Yes, it does.
Thank you so much. All right.
Let me also mention there was a study done not too long ago by some researchers looking at thousands of situations of actual retirees. They came up with a rule of thumb: if you add 20 to your age, that's the amount you should have in traditional IRAs, the balance or 401ks, the balance in Roth.
So that would be another approach that you could consider. Thanks for your call, Stephanie. Let's go to Chicago. Hi, Nancy. Go ahead.
Hi, Rod. Thanks for taking my call.
So I am forty years old, and I have three 401 accounts from previous employers just kind of sitting there. And I've been talking to some financial advisors. A couple of them are saying that I can now combine them into one account. and my return would be like eight percent to ten percent. But another financial advisor is telling me that I can he can invest in like a hedge fund and I would be getting between fifteen percent to seventeen percent return.
Yeah.
The question is always with what amount of risk?
So, you know, is there something that could, you know, and has generated 15 to 17 percent? Yes, but hedge funds are high risk. And so that promise should raise a red flag, especially if they're offering any kind of guarantee or expectation that that should automatically be earned. Anytime an advisor is making bold claims like that, I would get a second opinion, especially with your retirement money. I'd want to know what the fund is, what it invests in, what the risks are.
And I'd make sure that this advisor is a fiduciary who's legally required to ask in your best interest. But bottom line is promised high returns beyond the norm, and I would say that's, you know, anything above just historical averages of 7% to 9%, should be a red flag, number one, and would typically mean. That you have a high-risk situation, and I'm just not sure that's the kind of situation you want to be in with your lifetime of savings from retirement. Yeah.
Okay. Thank you. I just wanted to get your input. Absolutely, Nancy. We appreciate your call.
Thanks for being on the program today. Nashville, Tennessee, is where we're headed next. Hi, Jeff. Go ahead. I appreciate the heart of your ministry.
And several years ago, my son and his wife needed some money to build a tiny house. They built it themselves. and we put about six thousand five hundred dollars into the project for them. And now they're selling it for a loss for their third parties buying it. He took a loan out and basically the money they received, they're paying us back for the loan that we gave them.
So it's a net loss of about three thousand.
So my two questions were one, is there any type of sales tax event that we need to pay anybody? on either end and the second is is there any personal tax ramification for my son, who's Giving us the money back, or for us receiving it, is it just an investment loss, or is it something different? Yeah, yeah, got it. No, there should not be any sales tax due on the property. It just that doesn't apply here unless it's classified as a vehicle.
You know, so if the tiny home is on wheels or titled as an RV or a trailer, the DMV could charge sales tax. But, you know, if it's on land and treated as real estate, then, you know, there's no sales tax in that typical sense. With regard to income tax, the only thing that could possibly be is capital gain. But in this case, we've got a $2,000 loss.
So there would be no tax due because it's a personal use property. He doesn't get to deduct that. But the bottom line is it doesn't sound like there'd be any tax due on this whatsoever. Awesome.
So tiny house, tiny loss. Yeah, unfortunately. Hopefully, it served its purpose, though, and maybe now they can move on to something better. Absolutely, they did. Yeah, thank you, Rob.
Well, and you as well, Jeff, and thanks for your kind remarks about the program, sir. God bless you.
Well, as we round out the broadcast today, let me remind you: if you're looking for a certified kingdom advisor, you can do that on our website at faith5.com. Just click find a professional.
Now, if you're unfamiliar with that term CKA, this is the only financial services industry designation for biblically wise financial advice. That's right, CKAs have met high standards in character and competence. They've had a pastor and client reference. They've had a regulatory review. They've met significant experience requirements as well.
And you can have confidence when you choose a CKA that you're choosing a financial professional that shares your values as a Christ follower. If you'd like to find a certified kingdom advisor in your area, just head to our website. Again, that's faithfi.com and click find a professional. You'll find CKAs in five disciplines: financial planning, investments, taxes, insurance, and estate planning attorneys. Faithfi.com, just click find a professional.
Well, that's going to do it for us today. A big thanks to my team: Taylor Stanrich, Amy Rios, and Tahira Haynes for the entire team. I'm Rob West, and we'll see you next time here on Faith and Finance. God bless you.
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