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Now on to the podcast. Yours, Lord, is the greatness and the power and the glory and the majesty and the splendor. Everything in heaven and earth is yours. 1 Chronicles 29, 11. Hi, I'm Rob West.
If God owns it all, what does that mean for the way we manage money? Brian Holtz is here to unpack the five pillars of financial discipleship, principles that, when embraced by families, bring freedom and joy to their finances. And then we'll take your calls at 800-525-7000. That's 800-525-7,000. This is Faith in Finance, biblical wisdom for your financial decisions.
Brian Holtz serves as the CEO of Compass Financial Ministry and is the author of Financial Discipleship for Families. Brian, as always, great to have you back with us. Thanks, Rob. It's great to be with you again. Brian, I want to dive right in.
Let's begin with the first pillar of financial discipleship, and that is clearly ownership. It's that verse we started with today. What does it truly mean to acknowledge that God owns everything? Absolutely, Rob. Scripture is clear on this.
God made it all and he continues to own it all. We see it in Psalm 24:1, Haggai 2:8, 1 Chronicles 29, 11, just to name a few, but we could go on. And this is that mindset shift from mine. To his, as we recognize his role as owner and our role as manager or steward. And the clarity that this brings is a double-edged sword.
It's a relief to know that I don't have to do it all, but it's also challenging to know that I don't get to do it all. Yes, I think that's right. It brings both hope and humility to the equation when we understand God's ownership. All right. The second pillar is just as important and it's surrender.
What does that look like to put into practice in everyday life? Luke 14, 33 makes it very clear that we have to yield everything back to God in our hearts, not just our heads. It's not good enough to just know God as the owner. It means that we actually have to surrender to him. And this includes trusting God's plan over our own, not just in our giving decisions, but also in our saving and spending.
Well, I think that's exactly right. And that leads to the third pillar, which is this idea of choice. We can only serve one master, God or money. And right after that comes multiplication. Talk about how these two principles connect with one another.
Yeah, we all know this verse, Matthew 6:24, where we're presented the choice with we have to choose God or money, one or the other, not both. In every spending, saving, giving decision, it shows who we serve. And choosing God means aligning our daily habits with His Word, even when it's difficult. If Isaiah was right that God's ways are different than ours, but also much better than ours, we have to choose God over money, even when it doesn't make sense. And one of those choices is the choice of multiplication.
The parable of the talents teaches us that one of those tough choices we have to make is whether we keep what we've learned to ourselves or do we share it with others to grow God's kingdom. Yeah, that's exactly right. And clearly, we are to be multiplying to create disciples. And part of that has to do with financial stewardship. All right.
Well, the fifth and final pillar is eternal focus. And this is so central to living out a biblical worldview. But, Brian, how does viewing life through that biblical lens change things? We see in Matthew 6:19 through 21, Jesus encourages us to store up treasures in heaven, not on earth. But the treasure Jesus is talking about isn't money or gold or stuff.
It's a relationship with him. We've got to keep our eyes on the eternal prize and not get distracted by the temporary stuff all around us. Yeah. Brian, as you've taught and written extensively on this idea of financial discipleship, what's at the core of this that's different than just financial freedom or financial peace of mind? I mean, financial discipleship is a different idea.
How is it different? Yeah, it's easy to misunderstand financial stewardship. as only the responsible accumulation and consumption of resources. But financial discipleship is really about helping others learn, apply, and multiply everything for God's glory rather than for our own. How can Compass Financial Ministry help people become financial disciples, Brian?
We help people learn, apply, and multiply what the Bible truly says about money in their communities so that we can be free from the love of money and serve God more fully.
Well, and you're doing a great job at it. It's an honor to partner with you, Brian. I'm so thankful for your time today as well. Thanks for stopping by. Thank you, Rob.
Our guest today has been Brian Holt, CEO of Compass Financial Ministry. To learn more and get your copy of his book, Financial Discipleship for Families, head to compassfinancialministry.org. All right, back with your questions after this: 800-525-7000. I'm Rob West, and we're just getting started. Don't go anywhere.
As the leading advocate for the Christian financial industry, Kingdom Advisors serves the public by promoting the integration of a biblical worldview across every aspect of the financial services industry. And we serve a growing network of thousands of Christian financial professionals, equipping and empowering them to carry biblical financial wisdom to their clients, peers, and community. For more information, visit kingdomadvisors.com. That's kingdomadvisors.com. Millions of children throughout the world lack one simple item: shoes.
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Looking forward to taking your calls and questions today. We've got lines open. The number to call is 800-525-7000. Again, that's 800-525-7000. You can call with your questions at any point, but right now is a great time because we do have some lines open and we're ready for you today.
Again, that number 800-525-7000. We're going to begin today in Illinois. CJ, go ahead. Hi, Rob. I appreciate your program.
program. I am getting ready to receive money from a relative trust. And I was thinking about putting it into a high-yield money market for several reasons, but I don't know how to find one. And I don't know whether to look online and then how to know what the those banks I've never heard of any of those banks to know what they're you know are about. Yes.
Well, the first question is: you know, you're saying money market, and that's certainly an option. There's also high-yield savings.
So essentially, a high-yield savings account is offered by a bank or a credit union. It would be often either privately insured or FDIC or NCUA, meaning your money's guaranteed or backed up to $250,000 per deposit or per bank. The bank then sets the interest rate, which can change at any time. Your money is very liquid and very safe. I think the key is, and what you're probably describing is an online bank where often we haven't heard of the names quite as readily, but they take the savings of not having the brick and mortar operations and pass it back on in the form of higher yields.
Then there's a money market account, you know, and or a money market fund, two entirely different things. Yeah, I don't want to do a fund. I want to just have it. fairly liquid for a while.
Okay, yeah.
So a money market account is a bank deposit product like a savings account, but often it comes with check writing privileges, again, FDIC insured, and you know, high yield.
So if you're looking for a bank or a credit union, if you want an offering that aligns with your values, you could. Start with the Christian Community Credit Union. They're about to merge with Adelphi. They're the biggest in the country, and they really are for believers. And a portion of every dollar goes to fund Christian ministries.
They're paying now 5% on the first 5,000. It drops a little bit after that. And then there's a bonus available for FaithFi listeners. You can learn more at faithfy.com/slash banking. If really you're just wanting to look for the highest yield, the other option is to go to bankrate.com.
You know, if you click on high-yield savings, you'll see the Barry's best offering right now is about 4.25%. And you'll see plenty of those with five-star ratings. And if you found something with FDIC insurance that was four and a half to five stars rating, I would feel comfortable with that because you got the backing of the FDIC or something similar. You'd get a nice yield. And what you'd probably do is open that online account and then link it back to your brick and mortar checking account.
And then you could just move money electronically. Um, but I would say bank rate is a good option there, or if you want a Christian solution, again, faithfy.com/slash banking. But is that helpful? It is very helpful. Thank you because I get so confused.
Everybody calls these accounts something different, and yet some of them mean the same and some of them don't.
So I just need clarification. Yeah. I mean, the other option is you could look at a money market, you know, which if you're one of the big brokerage firms, you know, they're paying around four to four and a quarter as well, like a Fidelity or Schwab. But if you really wanted at a bank, I would say, you know, those options I gave you would get you pointed in the right direction.
Now, that interest rate is going to come down over time as interest rates fall, but it would give you something safe and liquid, you know, and on 30,000, I mean, if you're, let's say you get 4% over the next year, that's $1,200. And that's not insignificant.
So I think hopefully that'll get you pointed in the right direction. Thanks for your call today, CJ, and your kind remarks about the program. Tampa Bay is where we're headed next. Christina, go right ahead. Hello, how are you, Rob?
Thanks for taking my call. Absolutely. Thank you.
So my question today is, I'm probably on the opposite spectrum from a lot of people that call you. I'm 47. I just started my career after being a stay-at-home mom. That was my number one job, and I'm grateful to God that I was able to do that. um got my dream job, um, went back to school, got my bachelor's degree.
I'm making okay money. I they offer at my job, they offer a four hundred three B for retirement. I don't have any retirement, never have had retirement. because I didn't have a career, didn't have a job. Um my question is this.
They will start matching three percent. They have two options. One is like a pre-tax and the other one is a ROP. I think that's post tax Um They will match up to 3% after one year. Should I start putting money into that right now, or should I wait until they start matching?
I'm not sure what to do, and I'm not exactly sure how much. I should start putting in that account. We're still trying to get out of debt and stuff. and catch up.
Okay, yeah, very good.
Well, first of all, you did have a job and an amazing one at that.
So I'm delighted to hear that. But now that you're transitioning to this next chapter and you've got a different type of work that you're excited about, I'm thrilled for you in that as well. And yeah, this is a great opportunity for you to start putting some money away. I'm not terribly concerned about the fact that there's not matching for the first year, especially with it.
Sounds like your company gives you the option of a Roth 403B. That's great. That means you can put in the after-tax money and then it'll grow tax-free. And then you'll get that bonus, that kicker in 12 months where they're going to start to match it. But I think the key for you right now is to get something going into retirement savings.
And the Roth 401k is a great option, and you have a lot more room to put in more money than you do with the IRA. And you wouldn't get any matching on that either.
So you might as well just keep it in the 403B. I think the only question is, based on what you said right there at the tail end, if you have high-interest consumer debt, I would wait until that's paid off before you start putting money into the 403B because that's probably at a much higher interest rate than you would expect to earn reasonably on this 403B account.
So, what type of debt are you all still working on? Is it credit cards or something else? Yeah, we have credit card debt. We still have our mortgage, and we have.
Some used cards. We didn't want to buy brand new after dealing with some stuff and doing having just really bad luck with deals. Um we have very small like car payments with lower I mean They're not super low, but our balances are not ex extraordinarily high like they would be with a brand new car.
So, the goal is to try to pay those off and get out of some of that debt. And then, of course, the credit card debt. It's not astronomical, but it's enough where we probably should. Pay that stuff off first. Yeah, I would totally agree with that.
Not necessarily the cars. I mean, if you have a conviction about that, go ahead. But a lot of times, you know, as long as you didn't buy too much car and it sounds like you guys were really thoughtful about what you did there, I just work that into your spending plan. And I would take advantage of this opportunity to get that compounding working for you in that 403B. But I would prioritize the credit card debt first because if that's at an interest rate north of 20%, we want to get rid of that as quickly as we can.
So if you delaying the 403B contributions means you can get out from under that credit card debt quicker, great, let's do it. The second thing is, I'd love for you to have at least one month's worth of emergency funds in there before you start the 403B. And then let's start the 403B contributions.
So long as you've got at least something going into that emergency fund every month.
So even if it's slow, we're getting on our way to the three to six months expenses you really want. Ultimately, I'd love for you to be putting 10 to 15% of your pay. In that 403B, but if you need to delay that, Because you're still working on the credit cards, or because you're still working on the emergency fund, then that's fine. But as soon as you can, I get that money going in the 403B even before. The matching kicks in.
Awesome. Thank you so much, Rob. I appreciate it. Absolutely, thanks for your call today. If you'd like to call, the number is 800-525-7000.
A short break and then back with much more after this. Stay with us. Imagine having biblical financial wisdom delivered to your inbox every week, helping you integrate your faith and financial decisions for the glory of God. At FaithFi.com, you can join a community of over 70,000 people who are already receiving our weekly wisdom email, filled with articles, videos, podcasts, and exclusive offers on resources that will deepen your understanding of biblical stewardship. Start your journey today by creating your FaithFi account at FaithFi.com.
Just click sign up. Wondering who Faith and Finance recommends as a banking partner that aligns with Christian values? It's Christian Community Credit Union. When you open a high-yield checking, savings, or Visa cash back card, you'll help advance the gospel when making everyday transactions. Visit faithfy.com slash banking and use code FAITHFY when you sign up.
That's faithfy.com slash banking with code FAITHFI. Membership eligibility required. Each account is insured up to $250,000. This institution is not federally insured. Great to have you with us today on Faith and Finance.
All right, let's head back to the phones as we round out the broadcast today to Chicago Heights, Illinois. Hi, Nina. How can I help you? Hi Ron, how are you? I'm doing great.
Thanks for your call. Good. I just have a quick question.
So I'm a newlywood. And we're expecting our first child. And we have been looking to do the whole house hunting situation. I just wanted to do your opinion on what would you recommend, either a mortgage broker or going through like a bank. Yeah, it's a good question.
I mean, I like using a mortgage broker. You could also compare what you're getting from a mortgage broker to some of just the online tools. You could also check with your local bank. I think the big mistake people make, Nina, is they just, you know, get one quote from one lender and take it. And with this being the largest transaction that you and I will ever have, and that's the same for just about everybody, we should chop around and make sure we're getting the very best rates in terms.
You're probably going to want to look for a conventional loan. They require a good credit score and a stable income and a down payment somewhere between 3% and 20%. And I like for you to be at the 20% area. There's a flexibility in terms. And as long as you have at least 20% down, you could avoid that private mortgage insurance, which, you know, that's going to be a requirement if you get an FHA loan.
And that's going to be about 1% of the mortgage value annually. And it doesn't. Do anything for you. It's all for the lender.
So if you can avoid that by having that 20% down on a conventional loan, that's going to be your best option.
So to answer your question, though, I would seek out a mortgage broker, but you could also go online and or check with your bank. You may also want to check with our friends at Movement Mortgage. They're a nationwide lender. They're an underwriter of this program and they're believers and really are focused on not only serving God's people with wonderful loans, but building the kingdom at the same time. You can learn more on that at movement.com slash faith.
But is that helpful to you? Yes, wow, that really helped a lot. Yes, so you do recommend shopping around though? Because we did we've gone through like one mortgage brokery did like a soft pull. We weren't ready to do a hard pull yet just because I don't know, like he's persuading us to just go with him.
He's the best one we can get, but You know, there are a lot of other Options out there.
So maybe we'll look more into that. Conventional is what we're leaning towards as well.
So that's probably better for us rather than the F. H's. Um but and then one more question. We need help with like budgeting. Like, is there any advice or wisdom you can give us through?
Just like starting, obviously, you know, having a baby and, you know, all that stuff that all comes with budgeting and with this economy, it's obviously crazy. Sure, sure. Yeah, I certainly can. I think a starting point would be to download the FaithFi app. We just came out with the brand new FaithFi 4.0, and that's amazing.
You'd be able to set up your budget in there, be able to connect all of your checking and savings accounts, your credit card accounts securely using the third-party aggregator plaid, which is the biggest in the world. And you could use the envelope system, but in a really beautiful, simple interface on your smartphone, you and your husband would both have logins, so you could see at any point what's left in each of your envelopes so you can stay on budget. And I'd be happy to give you a six-month pro subscription just as our thank you for being on the program today. My wife, Julie, and I use it. We're in our FaithFi app every day.
And here's the key: once you take the time to set up your budget and then you connect all of your accounts, then all your transactions flow in automatically. And so at any point in the month, you see what's left in each of your envelopes just by opening the smartphone. You can say, hey, Honey, we've only got a little bit left in the eating out. I guess we're eating at home tonight. Or, you know what, our gift category is getting a little lean.
Maybe we need to wait until next month, or you know, whatever it is. But having the real-time information I think is really key, Nina, in terms of you not waiting until the end of the month to look back and see where you went over, but actually making course corrections along the way. You can find it in your app store if you just go to either Google Play or Apple and search for FaithFi. And if you hang on the line, we'll get your information and get you that six-month pro subscription, okay? That's huge.
Thank you so much. I really appreciate you. You're welcome. I also want to send you one other thing because you guys are newlyweds and you're just trying to figure out how to manage money God's way. I'd love to send you Howard Dayton's book.
It's called Money in Marriage God's Way, and it'll be our gift to you.
So here's what we're going to do: we're going to give you a six-month in the Faith Vi app, and we're going to send you that book, Money in Marriage God's Way, from Howard Dayton. And you guys, just seek the Lord and lean into this area of having really good, open, and honest communication and invite God into your financial life through prayer. And let's see what He does. I can't wait to hear the rest of the story. Call back anytime.
Thanks for being on the program today. All right, let's move right along. By the way, we have some lines open at 800. 52570000. You can call right now.
Let's go to Chicago. Hi, Mike. Go ahead. Hello, how are you? I really enjoy the program.
Very helpful. Quick question.
So on my four hundred one, the traditional four hundred one, I can actually view the amount that it's it's being recorded as a ROT account. And I do have a certain amount of money there. I wonder if that Part of the 401 account. I can get out As soon as I retire, which is going to be in a few months probably, and do I have to pay taxes for that or not, since I think it's that's that's paid already. As long as that's been open at least five years and you're over fifty nine and a half, you can pull out uh the contributions and the gains without any taxes on a Roth 401k.
Oh, that's fantastic. Very helpful. Thank you so much. Okay, no problem. We appreciate your call.
Anything else I can help you with? That was a quick one. No, that that will do. Thank you.
I appreciate that very much.
Okay, have a nice one. Really enjoy your program. Bye-bye. Absolutely. Thank you very much.
I appreciate that. We're getting close to the end. Ken's been waiting patiently in Virginia. Ken, how can I help you? Yes, sir.
Thank you for you taking my call. I bought a R V and a camping spot. five years ago in 2020. Yeah. Yeah.
Now my wife is not doing well, so we had to sell it last week. And when I went to do the closing, the the lady at the title agency gave me a 1099 that I didn't quite understand what I needed to do. I sold it for $40,000. And like I said, I bought it for $30,000. Got it.
Yeah. So it's a capital asset. The property, the land, and the RV used personally as a capital asset. Since it wasn't a primary residence, there's no exclusion. And so that's going to be a capital gain in your.
Simple explanation there of 13,000. It may be slightly lower than that if you have some expenses to put against it. But if you owned it more than a year, it'd be a long-term capital gain, which should be either zero, 15%, or 20%. And then, because of the 1099S, the IRS is going to expect to see it on the return. And so you'll report that sale.
And I would get a CPA to help you with that if you haven't done that before. But you will have to pay some capital gain. That is long-term capital gain more than a year. I hope that helps, Ken. We appreciate your call today.
Well, folks, that's going to do it for us. We covered a lot of ground today. Really appreciate you being along with us. Hey, if we can do anything to serve you, don't hesitate to reach out at faithby.com. You can download the app.
And while you're there, if you'd like to support our work, we'd certainly be grateful as a listener-supported ministry. Just click give. Thank you to Dan, Amy, Chris, Peter, and Taylor. We'll see you next time. Bye-bye.
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