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, go to findaca.com. When you board a plane, you trust the pilot to get you to your destination safely.
Shouldn't you be just as careful about who's advising you on your financial future? Hi, I'm Rob West. Wise financial decisions don't happen in a vacuum. They require wise counsel, but how do you know if the person giving you advice shares your values and convictions? We'll talk about that today and then it's on to your calls at 800-525-7000.
This is Faith in Finance, biblical wisdom for your financial decisions. You know, biblical wisdom and financial guidance should go hand in hand because financial advice is never neutral. Every advisor brings their worldview into the conversation. That's why this choice is not just financial, it's spiritual. You're entrusting someone with influence over how you manage God's money, and that's a significant responsibility.
Too often, advisors operate with a cultural mindset that defines success in terms of accumulation. And while you certainly want your advisor to grow the wealth they are managing for you, biblical stewardship points even higher toward faithfulness, contentment, and generosity. When you work with an advisor who shares those convictions, their counsel can help you stay aligned with God's design and make financial decisions that reflect your values and trust in Him. Before you start looking, be clear about what you need. Are you seeking comprehensive planning covering retirement, taxes, insurance, estate planning, and generosity, or just investment management?
Do you want a one-time plan or an ongoing relationship? The clearer you are on your goals, the easier it will be to evaluate whether an advisor is a good fit for your situation.
Next, ask if your advisor is a fiduciary, legally required to put your interests first, because how they're compensated can shape their advice. Commission-based advisors earn money by selling products, which can create potential conflicts of interest. Fee-based advisors charge fees, but may also take commissions. Fee-only advisors are paid solely by their clients, helping ensure recommendations are truly in your best interest. Regardless of the model, insist on full transparency so you can make informed and confident decisions without any surprises.
Credentials are also vital as they demonstrate the training and licensing required by law to provide sound financial advice. but just as important, if not more, is character. As you evaluate potential advisors, consider three key areas: values. Do they share your biblical worldview and integrate it into their counsel? Competence.
Do they possess the necessary training and experience to serve families like yours effectively? And process. Can they clearly explain how they're compensated and how they build a financial plan or investment portfolio? Here's a practical process to find the right advisor. First, build a short list.
Ask trusted friends, family, or church leaders for recommendations. You can also explore advisors in your area who share your biblical values, like Certified Kingdom Advisors at findaceka.com.
Next, do a background check, verify licenses, review disclosure documents, and look for any disciplinary history. All of this is accessible in the CKA's profile at findaca.com. Third, interview at least three advisors. Treat it like a job interview. You're hiring for a critical role.
Next, request a written scope and fee schedule. Get everything in writing for clarity. And finally, pray and take your time. If someone pressures you to sign quickly, that's a signal to step back.
Now, when you sit down for those interviews, you'll want a few strong questions ready. Here are some to consider. First, how are you compensated? Please outline every fee and expense. Second, what role does faith play in your financial advice and how do you define success?
And third, what's your process for creating a financial plan or investment strategy? Remember, Proverbs 11:14 says, Where there is no guidance, a people falls, but in an abundance of counselors, there is safety. The right advisor offers that kind of wisdom, guidance grounded in competence, integrity, and a biblical perspective. That helps you avoid missteps and make decisions with confidence. A trusted advisor can help you avoid costly mistakes, manage taxes wisely, stay invested during periods of volatility, and design a generosity plan that reflects your unique desires.
Most importantly, the right advisor helps you keep your focus on faithfulness, not just finances, so your financial decisions reflect trust in God's provision and purposes.
So, are you looking for biblically wise financial advice? Certified kingdom advisors meet high standards of character, competence, and biblical training. Finding the right advisor doesn't have to be complicated. You can start your search for a CKA today at findaceka.com. That's findacka.com.
Back with your calls after this. 800-525-7000. Stick around. 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 findaceka.com.
That's findaca.com. 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. Investing involves risk, including potential loss of principal. Carefully consider the investment objectives, risks, charges, and expenses of Guidestone Funds before investing.
They're distributed by Forside Funds Distributors LLC, which is not an advisory affiliate, a registered investment advisor, nor do they provide investment advice. Great to have you with us today on Faith and Finance. I'm looking forward to taking your calls and questions today. Our lines are open. Our team is ready.
We only need you to call the number 800-525-7000. Again, lines are open. You can get right through at the moment with your financial question, 800-525-7000. We're going to go to Rochelle Driving in Ohio. Rochelle, go right ahead.
Hi. Thank you for taking my call. I appreciate it. ministry over the years. Thank you.
I have a question about the A possibility. looking at the possibility of dildo reverse mortgage. My husband and I have some credit cards, I think credit card three credit cards. I'm actively paying down one very purposefully um Um Down to about $2,000. And the other ones are coming.
Well, I have a second mortgage that is. 30,000, and then I have two credit cards other than the 2,000. I have two credit cards that come through about two. $12,000. And our mortgage payment is $2,000 a month.
We have a ton of equity in our house. But I don't know how a reverse mortgage works, and I don't know how it affects our credit because our credit. Scores are both like 740. And I don't want to mess anything up.
Okay, and we're both retired. We both have Pad 401k, so we have IRAs now that are over 230,000. And I have Effectively $30,000 in the bank, and that's just backup in case something goes wrong. And let's see, what else do you need to know? I can't think of anything else right now.
Mm-hmm. Yeah, no problem. But I mean I don't have any idea how that process works and if it'll ruin our credit or whatever. Yes, got it. Great questions.
And yeah, I think this could be an option for you all. As long as you're at least 62 and you have roughly 50% or more equity in your home, which it sounds like you are and you do, then this could be a way for you to go. The reverse mortgages of today, which are called a heckum, a home equity conversion mortgage, is the only kind of reverse mortgage I would consider. And it's a government insured reverse mortgage. And it doesn't directly affect your credit score.
Payments aren't reported monthly like a traditional mortgage since you don't make payments. You know, could there be an indirect effect as the lender does a financial assessment, including a credit report check? Yeah, but that's not a big deal and it would come right back up. It's often a soft pull in many cases, and that doesn't even lower your score. But again, because you don't have to make mortgage payments, there's nothing that's reported to you.
Your report. And basically, with this government-insured reverse mortgage, you do have an upfront 2% fee to the FHA based on the amount of the reverse mortgage. And that's going to ensure that you never owe more than the home is worth.
Now, in most cases, let's say you just refinanced the existing mortgage.
So, essentially, when you take out the reverse, it pays off your existing conventional mortgage that you're paying $2,000 a month on. And let's say you didn't take another dime. At the very least, that would eliminate that mortgage payment because as soon as you refinance the existing mortgage, You no longer have to make a payment ever again.
Now, that balance, whatever it is that was refinanced as reverse, would grow over time with fees and interest, and the interest would be variable and follow basically the prevailing rates. of today, maybe a quarter to a half point higher at the most. And then, whatever equity is left when you move or die, and you and your husband could stay there, regardless of who pre-deceases the other one, you could stay there for the rest of your life. And then, at your death, just like if you had a forward mortgage, your heirs would either have to sell the house and then they get the rest of the money, or they could refinance it, which they would have to do even if you had a forward mortgage and keep the house.
Now, the benefit of that FHA fee, though, that I mentioned is: let's say you not only refinanced it, but you also got a check for the rest of your life, which you could do. And let's say the home, instead of appreciating, which just about every house does, it went the other way and it depreciated and they ended up paying you more than the home is worth.
Well, the FHA is going to step in and make up that difference. See, this is non-recourse debt.
So, every other mortgage, you're personally guaranteeing that if the home doesn't satisfy the balance, you're liable for it, or your estate is. In this case, it's just the value of the home and any equities that's left will come to you or to your heirs.
Now, the three ways you can take the money is: number one, you could just do what I said: refinance the existing forward mortgage, which eliminates the payment, not the taxes and the insurance, but the principal and interest. The second option is you could take a line of credit, which basically says Here's a line of credit, and that line of credit will increase over time as your home appreciates. And you can use it if you want, and you can pay it back, but it's optional. You never are required to make a payment. And then the third option is a monthly check for the rest of your life, which you could do as well.
Most people take either refinancing their existing mortgage because that gets rid of their biggest payment every month so they have more disposable income to use in this fourth quarter of life, or they get a line of credit or a combination of the two. Does that all make sense though to you? Yeah. Yes. I do have a question though.
other expenses I already have. Does it make sense to wrap those into a second mortgage or the refinancing of this thing? It certainly could, yeah, because that way it would eliminate all of those things. And as long as you all are committed to kind of living within your income, which it would be a lot easier once that mortgage payment's gone moving forward, I wouldn't want you to get into a cycle of continuing to overspend and then pulling from reverse. But yeah, if you wanted to roll the existing mortgage and your other debts into that initial one, again, you'd never have a payment, but that total balance that you pulled out of the equity of your home to pay off those debts would be increasing with interest and fees.
And then at your death, the two of you, or when you sell, it would be repaid out of the proceeds of the sale of the home.
Okay, okay. Gotcha.
So that was my real question because, well, I didn't understand what a reverse mortgage was to start with, but the second part was. That I really wanted to get into a position where I was able to get rid of these because. We are financially okay. I mean, our income, Versus our outflow every month. I'm still putting money into a savings account every month.
So that is. Not an issue. It's the, you know, paying down these extracurricular. Plus, I really have some repair work and changes that I need to make to the house. My husband is in a wheelchair and I need to.
Do a bathroom remodel on the first floor so that he can more easily access. that area. And I could afford to do that. But I hate to take the cash out of a bank to do that. If I could Wrap it all together, then I could actually just pay for it.
You see what I'm saying? I have enough money then to just pay for it, and I don't have the worries. Yes. I think that's exactly right. And that's a very appropriate use of this.
Let's do this: two things. One is, I want to send you a book called Understanding Reverse: Simplifying the Reverse Mortgage that I think will be really helpful that you could read through, you and your husband. And then, second, our friends at Movement Mortgage really are the experts here. Harlan Akola joins me usually once a quarter on the program just because he loves Jesus and this is his thing. He's been doing it 30 years.
And if you want to connect with him, just go to movement.com. That's movementmortgage, movement.com/slash faith. F-A-I-T-H and fill out the information. Harlan will get in touch with you, and he can answer all your questions related to your specific situation.
Okay?
Okay. Thank you very much. I appreciate it, Todd. Hold the line, Rochelle. We'll get your info and get this book out to you.
Thanks for your call today. Folks, we have room for a few more questions before we round out the broadcast today. The number to call 800-525-7000. That's 800-525-7,000. Give us a call right now.
A quick break and back with much more right after this. Stay with us. Are you a financial professional looking to grow your practice while offering advice that aligns with your Christian values? By becoming a certified kingdom advisor, you'll gain the biblical wisdom and professional credibility to serve clients who are seeking faith-based financial guidance. Each year, more than 75,000 people search for a certified kingdom advisor.
Join our community and share your expertise with clients looking for someone who shares their faith and values. Start your journey today by going to kingdomadvisors.com/slash get certified. Faith in Finance is grateful for support from Sound Mind Investing. If you have money in an investment account, you know sometimes the stock market can seem like a roller coaster. But it's possible to enjoy both profit and peace of mind as a do-it-yourself investor.
no matter what's happening in the market. A short video webinar about that is available at soundmindinvesting.org. Financial Wisdom for Living Well.
Soundmindinvesting.org Helping you see God as your ultimate treasure. This is Faith in Finance. I'm Rob West. Hey, are you looking for an advisor who shares your values?
Someone who's met high standards and character and competence, including pastor and client reference, training in biblically wise financial advice, a regulatory review, at least 10 years of experience, annual CE requirements.
Well, that's the Certified Kingdom Advisor designation. It's the only financial services industry designation that's widely accepted across all the major firms. There's 1,800 CKAs throughout the U.S. and Canada. And if you'd like to find an advisor who shares your values, who can bring that technical expertise, but really with that foundation of biblical wisdom, you can search for a Certified Kingdom Advisor on our website.
Just go to faithfi.com. That's faithfi.com. Click find a professional at the top of the page. Let's go to Ohio. Hi, Samantha.
Go ahead. I I'm a single mom of three children and I I have limited income, but I was wondering how I could get my credit score up. Yeah. You know, Samantha, being a single parent is challenging, and I get that. I've counseled with hundreds of single families over the years, single moms and dads, and I know how difficult that can be.
And so I think the key is with regard to a credit score, ultimately what it comes down to is the very best thing you can do, and I know this is going to sound obvious, but I think it just goes without saying, is paying your bills on time.
So to the extent you can be an on time payer every month, that is by far the most important because payment history accounts for the largest percentage of your score, thirty five percent.
So, always make at least the minimum payments on any loans that you have. Second, and this is easier said than done, I get that, but just over time, try to reduce any credit card balances. And if you're carrying credit card debt beyond what you're paying off every month, you may want to check with our friends at ChristianCreditCounselors.org to try to get the interest rates down to get them paid off sooner. Because the credit utilization ratio, fancy term, for basically just how much of your available credit you're using, that's what that means, that makes up 30% of your score. And you'd really want to keep those balances under 30% of the available limit.
So, getting it down below 30% is really going to impact your score positively. I would say avoid closing older accounts.
So try to keep those older accounts in place because that shows a good, you know, long credit history and that boosts your score. Limit new credit applications.
So new credit inquiries, which constitute what's called a hard inquiry, where you've asked a lender to evaluate your credit for the purpose of extending you a loan, that accounts for 10% of your score. And then finally, and this was a little more challenging to do, and I certainly wouldn't want you to take on a loan and pay interest just for this purpose, but I'll mention it just so you know that it's a factor. That final factor is your credit mix. And so your credit scoring algorithm wants to see that you have a variety of credit types.
So credit cards would be one type, installment loans, like a car loan would be another type. A mortgage would be a third type. Having a nice credit mix positively impacts your score. But again, not worth taking on debt and paying. Paying interest just to boost your credit score.
I just wanted you to know that's a factor.
So I think those are the primary ones. Maybe one additional kind of bonus tip is make sure you're pulling your credit report at least three times a year at annualcreditreport.com. And the reason is you're going to want to look for inaccuracies or fraudulent activity from accounts that are not yours and dispute those to get those off if they're there, because those would obviously be pulling your score down. But is that helpful to you, Samantha? Yeah, what was the name of that place you mentioned that could help me with my debts?
Credit card sure. Yes. Christian Credit Counselors.org. Christian Credit Counselors.org. They've worked with literally thousands of our listeners, Samantha, over the years.
They're wonderful, godly folks that just want to help God's people get out of debt. And what will happen is if you have credit card debt, they're going to get that into a credit counseling program, which just basically means you're going to get those interest rates reduced because every creditor has a credit counseling rate predetermined.
So if you slide into a credit counseling program through Christian Credit Counselors, all of a sudden that interest rate is dropped. And now that one level monthly payment that you pay through them, a lot more is going to principal.
So you can get it paid off 80% faster. Hey, listen, you hang in there. Great to hear from you today. And if we can serve you in any other way in the future, don't hesitate to call. Let's go to Nashville.
David, how can I help?
Well, my uh, we got hit by a tornado. And the Small Business Association gave us a loan for a disaster loan, and it's 1.5%. We owe about one hundred and sixty thousand. I know it's about six. And I've been hearing you talk about paying off your mortgage.
But my uh globally spouse of 58 years is saying Well, at that low rate to use money, we should invest in something else. Yeah. This stuff. Uh what are your thoughts on that? I agree with your lovely spouse, save one caveat.
So let me explain. She's right. 1.5% interest is extremely low, far below what you could reasonably earn by investing this money. $600 a month is manageable compared to that debt size.
So the opportunity cost, which is the kind of the economics term we would use here. Is that if you pay off it, the money, the loan early, yeah, it frees up $600 a month, but you also give up the chance to grow that. that money more productively. And so I would say, you know, that she's right.
Now, I mentioned there was one caveat, and here's what it is. If you just feel a conviction from the Lord. Uh David, to be debt-free. Then I would say, you know, as long as you and she are on the same page about it, then pay it off and don't look back. And I've never gotten a call from anybody in all the years I've been doing this that said, you know, I paid off my mortgage and I woke up the next day and regretted it.
I just don't get that call.
So, I don't think there's anything wrong with you wanting to pay off your mortgage, especially if you feel like that's just something the Lord's leading you to do. But I think on paper, she is exactly correct. That is a wonderful. Incredible rate that's being offered to you, or has been offered to you, because of the situation with the tornado. And you absolutely could do you know, you could triple that return just in a high-yield savings, at least right now.
Do you have shit?
Okay, well let's That's kinda what I thought, but I just like to check with people who deal with this every day.
Okay, tell her she's on the right track and uh she has my my full support. God bless you, bud. Thanks for being on the program today.
Well, folks, that's going to do it for us.
So thankful that you were along with us today. It was. Fun to be able to tackle your questions and hopefully just bring you some encouragement from God's word around our role, our high calling of managing God's money as stewards, seeking to be found faithful. That's our goal. Let me say a big thanks to my team today.
I certainly couldn't do this without my producer, Devin Patrick. Handling our call screening today, Sandy Dickinson, and providing me great support and research, Mr. Taylor Standrich today. Also, thankful for everybody here at Faith Fi. Listen, if you want to check out more on Faith By or consider becoming a partner, we're listener supported, that'd be huge.
Just go to faithby.com/slash partner and we'll come back and see you tomorrow. God bless you. Bye-bye. Faith in Finance is provided by FaithFi and listeners like you.
