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. What if the greatest gift you leave your children isn't your money, but your wisdom? Hi, I'm Rob West. As stewards, we often focus on managing God's resources well during our lifetime, but what happens after we're gone? How do we equip the next generation to carry on a legacy of faithful stewardship?
Today, Sharon Epps joins us to talk about that. Then it's on to your calls at 800-525-7000. That's 800-525-7000. This is Faith in Finance, biblical wisdom for your financial journey.
Well, I always look forward to welcoming Sharon Epps back to the program. She's president of Kingdom Advisors, the parent organization of Faith Phi, and a trusted voice on biblical stewardship. She's also a wife, a mom, and someone who's walked alongside countless families as they seek to honor God with their finances. And, Sharon, I'm really looking forward to diving into this topic. I am as well.
Thank you, Rob. Sharon, we often focus on being faithful stewards of what God has entrusted to us, but you'd like to ask a deeper question, which is: what about the next steward? Unpack that for us. We teach that God owns it all and that we are stewards, but rarely do we pause to think about who will manage what God has entrusted to us after we're gone. Yeah, but Proverbs 13:22 says, A good man leaves an inheritance to his children's children.
That inheritance can be a blessing, but without proper preparation, it can also be a source of conflict among heirs. That's just one reason why I believe we should focus on transferring wisdom before we transfer wealth. Yeah, I know Ron Blue has reminded us for decades the question: is the next steward chosen and prepared? And that's what we're getting at today. Sharon, you've said that passing on wisdom is a process that begins early.
So, in your mind, what does that look like in the everyday? I think a good first step is to recognize a child's giftedness. God created us to work, and part of stewardship is discovering how He's uniquely wired us. My daughters are a good example of how different that process can look. My youngest was teaching her dolls at three years old.
You could just see her gifting early on. My oldest explored several different paths before eventually turning her heart for young children into a preschool teaching career at the age of 30. Wow. As parents, our job is to walk alongside our children, help them try things, and ask God to reveal their strengths. Yeah, and they are each created uniquely.
That is for sure. What about those moments, Sharon, when kids make poor financial choices? That can be really hard to watch, and our desire is to intervene.
Well, it can be incredibly tough, but we need to let our kids experience the natural consequences of poor money choices. Our instinct is to rescue them. I remember when our son made a poor decision involving a bicycle. It was painful to watch him go through the disappointment of losing it when he left it unlocked. But my husband and I had to remind ourselves: we're not just parenting, we're preparing a future steward.
And lessons learned through real experience tend to stick. Oh, that is so true. We experienced that in my household. I had one that would always leave his backpack at home as a little guy, and I would always run it out to the car. And Julie said, one day we're going to have to just let him go to school without it.
And it was so painful. But once we did, he learned that lesson and never did it again. Absolutely. You're exactly right. All right.
So how can we give kids meaningful hands-on experience with managing money before they head out on their own?
Well, we need to give them real-world opportunities. An allowance can be a helpful start, but our goal was for our kids to be managing a full spending plan before leaving for college. We used a simple envelope system starting in preschool, give, save, and spend. And as they grew, we added more categories. Eventually, they were covering all their own expenses except housing and insurance.
Oh, I love that.
Now, I'm sure in our listening audience, there's somebody that's saying, perhaps many, I haven't started any of this yet. I feel like I'm way behind. Where do I begin? First, give yourself some grace. None of us get this perfect, but start small.
Maybe a conversation over dinner about what you've learned in your own money journey or invite your child to help plan the next family purchase. Just begin somewhere. This isn't about getting everything right. It's about being intentional and letting the Lord guide the process. Yeah.
Let's finish today with just a final challenge to our entire audience that is ready to start preparing their next steward.
Well, it is to pray. Ask God for wisdom and don't be afraid to ask for help from others, whether that's a friend, a mentor, or maybe a financial professional. You don't have to figure it out by yourself. And remember, this is a journey. There will be missteps, but each one is a learning opportunity.
Just keep going. Yeah, that is well said. And remember, more is caught than taught.
So we got to model this every step of the way. Sharon, thanks for your time today. I'd loved it. Thank you. That's Sharon Epps, President of Kingdom Advisors.
If you're looking for somebody to walk on this journey with you, someone Who shares your values? Perhaps you need a certified kingdom advisor. Just go to faithfy.com, click find a professional. Your calls are next. 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 faithfy.com.
Just click Find a Professional. Are you feeling overwhelmed by credit card debt? As followers of Christ, we are called to be good stewards of what God has given us. That's why our trusted partner, Christian Credit Counselors, is here to help. Their debt management program can help you pay off your debt 80% faster while honoring your commitments in full.
Take the first step toward financial freedom today. Visit ChristianCreditCounselors.org or call 800-557-1985. This is Faith and Finance. Looking forward to taking your calls and questions today, which we'll do here in just a moment.
So now's the time to call if you have a question, something going on in your financial life, 800-525-7000. Again, that number is 800-525-7000. Sandy standing by, you'll get right through today. We do have some lines open, but they probably will fill up quickly here.
So go ahead and call with a question on anything in your financial life: 800-525-7000. We're also going to get to a few of those emailed questions today. We try to tackle a few of these each week, and we're so grateful when you send them to us. Askrob at faithfi.com. Let's do that now.
Tara writes, I heard a past episode discussing ways to renovate a paid-off home. My father-in-law recently moved to assisted living, and we need to update the bathrooms before resale or renovation. Rental. What options besides a reverse mortgage are available to help seniors or veterans fund home improvement? And Tara, that's a great question.
It's wise to think carefully before tapping into the equity of a paid off home. I believe reverse mortgages do have a place as a tool, but they're not my first go-to, especially if you're paid off and want to stay that way. But they're not the only tool.
So if your father-in-law has other benefits, or if the goal is to prepare the home for resale or rental, here's a few options worth considering. I think first, VA grants for home improvements. If your father-in-law is a veteran and has a qualifying service-connected disability programs like the Specially Adapted Housing SAH or home improvements and structural alterations, those grants could be helpful here. These can be used to make the home more livable, especially for accessibility upgrades. There's, of course, just the traditional.
home equity line of credit. Since the home is paid off, a HELOC, as it's called for short, could provide that flexible and low cost way to fund renovations. It has a variable interest rate typically, although not always, but typically, which would allow you to Come down on that rate as the Fed funds rate declines, which we expect later this year. It's not tied to age or military service. And you'd usually be looking at maybe prime plus a half, maybe prime plus one.
Prime right now is at 7.5%.
So you're probably talking 8%, 8.5%. But there are some that offer incentives. In some cases, like for the first year, you could get maybe 150 basis points off. The interest rate. Also, there's a few of them right now.
I know Bank of America is one of them that are doing HELOCs fee-free. And so you don't have any initial costs associated with the home equity line of credit, which could be a good way to fund renovations.
Now, there is a lien on the home, but that allows you to source the funds without paying an arm and a leg, like with a personal loan, especially in this interest rate environment.
So, you know, the home equity line of credit is usually the go-to. The key is just make sure you're not just covering interest only, which is often an option, especially while that line is still open. I would be making sure that you could be paying it back with principal right out of the gate. Also, don't miss state and local assistance programs.
So, some states and counties offer home rehab grants or low-interest loans for seniors, veterans, and those updating homes specifically to meet safety standards.
So, you could check with your local housing authority or area agency on aging.
So, I would just say, at the end of the day, with a paid-off home, you've got options, and choosing the right one depends on your long-term plans for the property and your father-in-law's eligibility for veterans' benefits.
Now, if you find that he just doesn't have access to what he needs from his veterans' benefits, I will say that reverse mortgages got a bad rap for good reason, I think, in the past. And they're a different product today. The home equity conversion mortgage, you know, ensures that if you're married, you and your spouse could stay in the home until both of you die. It does not have to be repaid until you pass away, or both of you pass away, or the home is sold. It gives time for your heirs to get the estate settled, get it sold, and then whatever is owed on the balance of the mortgage gets paid out of the proceeds.
And then the balance is then given away to ministry or to your heirs according to your wishes. It's a great option for somebody where they haven't saved enough, they want to stay in their home, they're sitting on a bunch of equity, it's just illiquid. Being able to get that out either in the form of a monthly check or a line of credit without having to add that mortgage payment can really be a game changer for some in this fourth quarter of life to be able to maintain their lifestyle. By using that equity. And often the kids don't want the home anyway.
They're just going to sell it. They may not even need the money. And so they would often rather you enjoy it. If it's going to be the difference between you being able to, you know, cover your bills and have something left to maybe take a trip every now and then and just enjoy this season of service to the Lord versus you just struggling to make ends meet every month while you're sitting in a home that's paid off without being able to tap into it.
So don't miss that. And if you want to learn more about that opportunity, our friends at Movement Mortgage really love to educate about those products. Just go to movement.com/slash faith and connect with the team there. All right, let's head to the phones today. 800-525-7000 is the number to call if you have a financial question.
Let's talk to Jacob in Indiana. Go ahead, sir. Yes, sir. I had a question about um my pension.
So I let the I left an employer about five years ago and I had the pension in there. Yeah. Right now, I have an IRA, but my wife and I have been talking about pulling that pension since it's not. gaining anything really. whether to pull that and put it in my IRA.
and make some more money or to cash it out and Pay off some debts. Yeah, I like getting it out of there and rolling it to the IRA because that way you've got more control over it in terms of how it's invested. And you certainly want to make sure that it's growing appropriately without taking unnecessary risk, but has the opportunity to increase in value. As to the debt, what kind of debt are we talking about? What type of debt and how much?
So we have two vehicle pay or two vehicles, and those are a total of about fifty thousand. And then she has a school loan. Which is, it's technically $40,000, but half of that is through the school, and the other half is. Half is through a Sally Mae. All right.
Very good. And how much do you have in the IRA today? Uh Is about eighteen. All right, and how much is in how much would the cash value of the pension that you would roll over be? It'd be about 14.
Okay.
So we're talking about roughly $22,000 and you've got about $90,000 in debt between the two, right? Yeah. Yeah, now the school uh the school debt Um so my wife is now working technically for the the school I would say. And they're going to pay off. They're going to pay off that part of it.
Okay, good. Yeah. So he's working for them for like three years or four years, something like that. Perfect. Yeah, that's a great opportunity.
And what are your ages? Uh I'm thirty three and she's thirty.
Okay.
Yeah. So I wouldn't use this for debt repayment. I mean, that's going to be expensive money because you're going to add it to your taxable income and you're going to pay the 10% penalty on top of it.
So you could be paying 30% off the top of that money.
So what I would do is just roll that out to the IRA, get it invested properly, keep contributing to that IRA. Or if you have a company-sponsored plan that makes more sense, that's great too. And then let's just focus on paying down that debt, starting with whichever of those has the higher interest rate between the cars and the portion of the student loans that is not going to be paid by the school. And let's just pay the minimums on everything, but let's truly try to dial in our lifestyle spending and budget to free up cash flow and attack that one with the highest. uh interest rate.
Right. Right. Okay.
All right.
Hey, God bless you and thank you for calling the program today. Please call us anytime if you have another question.
Well, we're going to take a break when we come back. More of your questions today. The number 800-525-7000. Call right now. We'll be right back.
We chase money thinking it'll bring security. We seek success hoping it'll satisfy. But the book of Ecclesiastes exposes this truth. Lasting contentment isn't found in what we own, but in a personal relationship with Wisdom Himself. Jesus.
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More information is available at PraxisInvest.com. Hey, thanks for joining us today on Faith and Finance. We've got time for more questions today.
Something going on in your financial life you want to talk about? Give us a call. We'll help you process it through the lens of scripture, but help you make a practical decision. Whether it's your lifestyle and your spending plan, reining in your spending, balancing that budget, maybe it's investing for the future, given all the uncertainty. How do you save effectively, build up that emergency fund, pay off debt, improve that credit score?
Whatever it is, call right now: 800-525-7,000. We've got a few lines open to Tampa, Florida. Frank, thanks for waiting patiently. Go ahead. Hi, Rob.
God bless. Thank you. I've been very blessed by your program. learned a lot, but my question is, I'll be turning sixty two in the next couple of two weeks. Still working.
My wife's working, she's ten years younger. I make a pretty good income and she does as well. We're debt-free except our mortgage. My question is, should I take my Social Security benefits as sixty two? I'm thinking about maybe invest in it.
or paying off the mortgage. And that's kind of where I'm at right now.
So any advice would be really appreciated. I'd be happy to weigh in. What is your interest rate on your mortgage? Yeah. Okay.
Yeah. So it's not the 2% to 3% that we saw several years ago, but not the 7% that we're seeing right now. Could you do better than 5% after tax in the market? Not guaranteed, but you could do close to it.
So I think there's something to be said about that. The downside is, if you claim it's 62, your benefit is going to be permanently reduced by somewhere between 25 and 30%, versus if you wait until full retirement age, somewhere between age 66 and 67. And if you're still working, if you earn more than $22,320, they're going to withhold a dollar for every $2 you earn above that limit until you reach full retirement age.
So for the next four plus years.
Now, you'll eventually get that back, but you won't get it now to invest it. you're gonna have to wait and get it later.
So, you know, taking the benefits now means reduced benefits for life and temporary penalties.
So, in most cases, especially if you're still working and you're healthy, it's wise to wait because you'll lock in that bigger benefit for life and potentially for your spouse too. You know, if you were at 3% on the mortgage, it'd be a no-brainer. But even at 5%, I think, you know, delaying Social Security is going to pay off long term, especially if you live. You know, a while. And, you know, unless you just have a real conviction to be out of debt as soon as possible, you know, I'd probably stay the course, continue to pay down the mortgage and not lock in that lower benefit and risk having that reduction because you've earned over the limit, given that you're not full retirement age.
Does that make sense? Yes, it does. Yes, it does. I really appreciate it. And thank you for your time and your advice.
Thank you, Frank. Lord bless you, my friend. Let's see. We're going to finish up in Park Ridge, Illinois, Virginia. Go ahead.
Yes, hi. I have a single family home. With a maturity date of September 2045. What I owe on the mortgage now is approximately $125,000. I have that amount plus 15,000 plus.
in savings.
So my question is, should I pay that off now? Yeah. It's a great question. If you did, what would you have left in savings, Virginia?
Well, no, I would have this the fifteen thousand left in savings. But then I figured I would then the payment that I would have been making, I would just go into savings then immediately when I pay it off. Yeah. And did you say you have a what is your maybe you didn't what is your interest rate? Four point one two five Okay.
Yeah. Yeah, I mean, so here's the thing: if you pay it off, you've got a guaranteed interest rate equal to the mortgage. If you invest it, you've got to make enough to earn higher than that, at least 4.1, but you've got to actually earn more than that because you've got to be able to pay the taxes. Because even if it's in a high-yield savings at four and a quarter, you know, that interest is taxable.
So after you pay the taxes, you're probably going to have somewhere, unless you're investing it and you're taking some risk and trying to grow it, you're going to, with a get more of a guaranteed return or an ultra-conservative return after taxes, you're probably going to end up net net less than what you're paying in interest.
So I think that does make sense, especially if you really value the idea of being completely out of debt. Because, to your point, it's equal to a guaranteed 4.1% return after tax, which is what your interest rate is. You're still going to have enough emergency funds, I would imagine, to cover at least a couple of months' worth of expenses. And to your point, although you're still going to have the property taxes and the insurance, you could take 100% of what you were sending for principal and interest and put that in savings every month and build it right back up. To a goal of six months' worth of expenses in reserves.
And now you've got the peace of mind to go with it of being debt-free.
So I think if that's really your priority, I'm on board with it. Oh good. to say, I am a healthy, active 85-year-old.
Okay, I wanted to secure some money, more money, or whatever I can, you know, for my family. For yes, very good. That was Yeah, I think that's great. And it gives you the ability to have build up your savings again. I mean, the only downside, if there is one, is just your home is very illiquid.
So, you know, it's not easy to get that money out. I mean, you could take out a reverse mortgage. There are things you could do to tap into it. But right now, you're sitting on plenty of cash. And you know, you could probably earn somewhere close to what you're paying on the mortgage, which is a wash, but you're keeping the liquidity.
And if you needed long-term care or something, not now, because you said you're healthy, but if you needed it a few down the years down the road, you probably at that point, you know, would have to sell it and then you'd be able to use the money at that point.
So, something to think about, Virginia. Thanks for your call today. God bless you.
Well, that's going to do it for us today. I'm so thankful for your calls. What a privilege it is that you invite us into your stories each day as we guide you back to God's word and encourage you to apply the wisdom we find in scripture to your financial decisions and choices. And let me invite you to become a Faith Phi partner. These are men and women who help us reach more people with this life-changing message of God's wisdom related to stewardship.
Faith Phi partners support us monthly at $35 a month or more, or $400 a year. And we have the opportunity to make available some great Faith Phi partner benefits. Including exclusive quarterly ministry updates and early release copies of each of our Faith Phi studies and devotionals mailed right to your door. If you'd like to become a Faith Phi partner or give a gift of any amount, just head to our website, faithphi.com, and click give. That's faithfi.com and click give.
Well, folks, we hope you come back and join us next time on behalf of my entire team here at Faith Phi, including today's broadcast team, Taylor Stanrich, Amy Rios, and Chad Clark. I'm Rob West. Looking forward to having you back here next time as we apply God's wisdom to your financial decisions and choices here on Faith and Finance. Until then, may God bless you. Bye-bye.
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