This Faith and Finance podcast is underwritten in part by Christian Healthcare Ministries. Are you finding it increasingly challenging to find affordable healthcare? Christian Healthcare Ministries is a budget-friendly, biblical, and compassionate healthcare cost-sharing alternative that aligns with your Christian values. And it's available in all 50 states and around the world. Learn more at chministries.org/slash/faithby.
Health insurance or health cost sharing? Which is the better fit for your family? Hi, I'm Rob West. With open enrollment upon us, it's the perfect moment to explore your choices. Joining me today is Lauren Guide to highlight the key differences between health insurance and health cost sharing.
And then we'll take your calls at 800-525-7000. That's 800-525-7000. This is Faith and Finance, biblical wisdom for your financial decisions. Lauren Guideck is the Senior Director of External Affairs at Christian Healthcare Ministries, the nation's longest-serving health cost-sharing ministry, and a longtime proud underwriter of this program. Lauren, great to have you back with us.
Oh, Rob, always good to be with you on the show. Thanks for having me. Lauren, give us a quick overview of how most traditional health insurance plans operate. Sure.
Well, as you mentioned in your intro, Rob, we're coming up on the open enrollment season for health insurance, which is November 1st through January 15th of 2026. And health insurance, most people are familiar with it, but there's some key characteristics. Usually that you have to follow. a provider network, you know, choose providers. in a list that's given to you.
And you know Sometimes there's pre-authorizations or you have to get a referral to see a doctor. But on the cost side, it's generally pretty high because insurance companies are out to make a profit, which isn't necessarily a bad thing, but that can conflict with patient care sometimes. And the premiums and deductibles can be quite expensive even before insurance will even start to cover. Yeah, that's exactly right, which really puts the squeeze on the family budget.
So, then let's compare that to health cost sharing. How does that work?
Well health costs sharing I like to say is a way of getting your medical bills taken care of. You know, the end result is the same in that that happens. But we operate differently because we don't have provider networks. Our members can choose their own providers. You know, they're not dealing with a big bureaucratic organization.
You know, we're a ministry, a nonprofit. And members, what they do is they send in a monthly, what we call a monthly contribution. And it's a set amount of dollars every month. We pool those resources and reimburse our members. For their medical bills.
We call that sharing. Yeah, and you've been doing it for a long time, and I know more than $10 billion with a B has gone out. Can you walk us through how health cost sharing works in a real life situation? What would it look like for a typical family, and how exactly do the bills get paid? Yeah, absolutely.
So what you would do, like I said earlier, is you go to the healthcare provider of your choice. As long as the treatment falls within the Christian Healthcare Ministry's guidelines, you have a lot of freedom and flexibility there. And when you get your treatment, You let them know that you're legally a self-pay patient. And that actually gives you the opportunity to receive discounted rates, sometimes upwards of 40%. is what we typically see.
And then CHM works with your healthcare providers as needed. You set up a payment plan in the meantime until CHM reimburses the cost of your care.
So it's very simple, easy to do, and we're always here to help our members with questions they have along the way.
Well, and we even have some of our team members here at Faith Vi on CHM's program, and they love it.
Now, Lauren, with open enrollment right around the corner, what should folks keep in mind as they weigh their options? Yeah, there are a few different things. You know, we just got done with the summer travel season. People might be thinking about vacation for next year, but I think a lot of people don't realize that their insurance does not always go with them if they're getting treated out of the country or even out of their own state. It just depends on what kind of plan you have.
With CHM, you can take it just about anywhere. It's very portable, flexible. But also, again, going back to the cost, that's a major deciding factor for people. And you really have to think about not just how much does my monthly premium cost. but how much am I really paying out of pocket after deductibles and co-insurance and stuff like that.
So CHM does not have. coinsurance or co-pays or anything of the sort. We share 100%. of qualifying medical bills according to our guidelines. I love it, and it's biblical at its core.
It's a non-profit ministry, not an insurance company. Members pray for one another and receive prayer support, and your monthly gift is going directly to help another member in need. Lauren, we're so honored to be partnered with you, and thanks for stopping by today. Thanks so much, Rob. Always glad to be with you.
Folks, check out CHM at chministries.org slash faith5. That's chministries.org slash faith. FI, we'll be right back. 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 Four Side Funds Distributors LLC, which is not an advisory affiliate, a registered investment advisor, nor do they provide investment advice. Healthcare is complicated. It doesn't have to be.
If you don't love how your health insurance works, maybe it's time to leave traditional health insurance behind. Take charge of your healthcare with Christian Healthcare Ministries. CHM offers you flexibility. Enroll anytime. Choose your own provider and select the program that fits your needs and budget.
CHM is the original faith-based way of taking care of your medical bill costs. Learn more at chministries.org/slash faithfy. I'm so glad you're with us today on Faith and Finance. As you navigate your financial journey, we want to come alongside you, encourage you, point you back to God's word, but give you some practical advice as well.
So, if you have a question today, you can join Jimmy and Frank, who are already waiting in the queue to ask a question today. Just call 800-525-7000. We'll be taking those questions here in just a moment. Lines are open, but not for long.
So, call 800-525-7000 with your financial questions. We'll head to those phones here in just a moment. But first, in the news today, if you're in your late 40s or early 50s, the latest Federal Reserve numbers may sound discouraging. Most Americans in this age group have less than $90,000 saved for retirement. But don't lose heart.
These are still prime years to make meaningful progress, and small steps now can add up to big changes later. Mm-hmm. Here are a few takeaways. First, the typical savings amounts. Households headed by someone aged 45 to 54 have a median retirement balance under 90K.
That means half have more, but half have less.
So if you feel behind, you're not alone.
Now, why does this matter?
Well, these are the years when expenses like college tuition or caring for aging parents often collide with the need to accelerate retirement savings. It's a financial pinch point, if you will. What can we do?
Well, there are 401k catch-up provisions.
So for 2025, if you're over the age of 50, the IRS allows catch-up contributions. That means an extra $7,500 each year going into your 401k or 403B. That's on top of the regular limit of $23,000 in 2025, allowing you to put away a full $30,500. There's an IRA catch-up as well, which can exist alongside of 401k. It's not in lieu of.
And that one is if you're 50 or older, you can add an extra $1,000.
So that means a total of $8,000 going into an IRA, and that's across all your IRAs. You cannot put in more than $8,000 for the year. That's, of course, subject to income and compensation rules. Other strategies, freeing up cash by paying down high interest debt, trimming lifestyle expenses, or redirecting bonuses and raises into retirement accounts, can add up in a hurry. The bottom line is this: don't let averages discourage you.
Instead, let them motivate you. A focused plan, especially in these critical years, can dramatically change your retirement outlook. Hopefully that's an encouragement for you today. All right, let's dive into those questions. We've got a few lines open.
You can call right now, 800-525-7000 with anything financial. We're going to begin in beautiful Vermont today. Jimmy, go ahead. Hey, Robin. I appreciate you taking my call today.
I listen to your show when I can, and I always like the advice you have. Thank you. We're in the process of refinancing our home and We don't know whether it makes sense to roll those closing costs. into the cost of the into the loan itself and in our minds, that's incurring debt. You know, the Bible says to not incur any unnecessary debt.
Or should I take the money out of our investment accounts and all? and and pay for the closing costs. Out of savings, so to speak. Yeah, yeah, it's a great question. And I realize why you're asking it.
Where would those funds come from specifically? Is it a retirement account? And if so, what type? Um well, it probably would come from a uh A retirement account. We have several IRAs and we have some Roth IRAs.
I'd probably take it out of the Roth. But I mean, I would, you know, I would ask my, once I decide to take it, I would, you know, I would ask my financial advisor, you know, where's the best. place to take it at this point in our retirement. Yeah. But part of me says, why not just added to the the cost of the you know, the loan itself.
And then it's going to lower our payment by like $328 a month.
So in my brain, it's only like 16 months or so to actually truly pay the closing costs back to us. Mm-hmm. But I would use that. $328 a month to pay off some existing debt. Yeah, so what you're saying on that 328 is when you refinance, the total payment is coming down $328 from what your current mortgage payment is?
Correct. Yeah, yeah. Yeah, you know, I mean, my general recommendation is to do what you just said: it's to roll it into the mortgage if. The place you have to take it from is a retirement account because I would rather you preserve those retirement funds that can continue to grow in that tax-deferred environment, especially if you're pulling it from a traditional. You did mention you have the Roth option, which is better because that doesn't have the immediate, you know, that doesn't trigger the immediate taxes.
You'd be able to pull that out and not pay any taxes, but it does reduce your long-term retirement income. And so, you know, I like that option more. I mean, if you were to roll, let's say, and maybe it's probably more than this, but if it's $5,000 at costs of it 6% over 30 years, that's going to add 30 bucks a month to the payment that could cost you, you know, $10,000, almost $11,000 in interest.
So, I mean, that's not insignificant, but it happens over time as opposed to this one-time hit coming out of your retirement plan. And then you've got the opportunity cost of what that could grow to continuing to work for you in that tax-deferred environment.
So, you know, my general recommendation is that pulling from retirement isn't often the wise choice. It shrinks that nest egg.
So, rolling it into the loan does mean you'll pay interest on the costs, but it spreads them out and preserves the retirement savings, which I'm generally a fan of. Yeah, I mean, I appreciate that because our investments are making a minimum of 8% a month. And my mortgage loan is going to be 5.25.
So, to me, I'm losing money by taking it out of my account. Yeah, that's right. Are you getting a 15-year-old? I I'm going to go with the thirty just to 'Cause I don't expect to keep the house more than five more years. Yeah.
Okay. I wanted to have the lowest payment I could get right now. uh to pay down other other debts that uh We're close to having paid off, but they're not.
So the three twenty eight, I can throw at those. And before the five years when we really would like to move, is up, we'll be debt free other than this mortgage. Yeah, well, that's another reason. What you just said there, right at the tail end, is another reason why I would encourage you to go ahead and roll it in because you're not talking about paying interest on this extra five or eight or ten thousand in closing costs over 30 years, which is where that interest will really mount. We're talking about just paying the interest on that extra amount for five years, and then you're going to end up paying that mortgage off when you sell the house to relocate.
So, I think that further underscores the benefits of just rolling it in. All right, I appreciate it. Thanks so much. Absolutely, Jimmy. Thanks for your call, sir.
Lord bless you. 800-525-7000 is the number to call. We'd love to tackle what's on your mind today and encourage you from God's word, help you lean into that role that you have of being a wise and faithful steward, but do it with confidence. Because, you know, as we think about our financial lives, there is just a seemingly unending number of decisions that we have to make every day. And we have limited resources.
I don't have to tell you that you're reminded of that every month, where there's, you know, in some cases, more month than money and expenses. are up across the board. And I understand you just want to be found faithful, honor the Lord and what he's entrusted to you. And our goal each day on this program is just to come alongside you and say, you got this and point you back to scripture where we find wise counsel. It starts with the idea that God needs to be our ultimate treasure, not our things.
We need to lift our sights and maintain an eternal perspective, not be fixated on the here and now, the temporal, the circumstances of the day. Trust God as our provider. Lean into our role as steward. And realize we have a high calling, but there's help, God's Word, and this program to join with you in that. Back with you more questions after this.
Stay with us. If you love what you hear on this program, there's even more waiting for you at FaithFi.com. Explore podcasts, videos, articles, Bible studies, and devotionals, all designed to help you see God as your ultimate treasure and money as a tool to advance his kingdom. Pursue wisdom, practice generosity, and steward God's resources in a community with others who share your faith. Visit FaithFi.com to take the next step in your faith and financial journey today.
That's faithfi.com. Faith in Finance is thankful for support from The Good Investor, a book by Robin John. In his book, Robin shares his journey from an immigrant child struggling in school to co-founder and CEO of Eventide Asset Management, a faith-based investment firm. This Faith and Work memoir seeks to inspire readers to view their work and investments as opportunities to honor God and bring blessing to the world. More information is available at goodinvestor.com.
That's goodinvestor.com. Great to have you with us today on Faith and Finance. We're taking your calls at 800-525-7000. Let's head back to the phones. Frank has been waiting patiently in Kentucky.
Go ahead, sir. I'm gonna tell you about taking getting a reverse mortgage. I just wanna ho to clear out the present mortgage. What is that? the person borrowed money to take care of that Where does the the where does the loan come from?
So when you take out a reverse mortgage, which the reverse mortgages we're talking about are called a hecum, a home equity conversion mortgage, which provides that FHA insurance, so it's government guaranteed. Meaning you'll never owe more than the house is worth. And if the loan never grows to the value of the house, that home remains yours and the equity is yours.
So after the loan is paid off, when you move or pass away, the equity belongs to your estate to give to your heirs or give to ministry.
Now, to your point, often a reverse mortgage is used to. To pay off an existing conventional mortgage.
So, what we might call a forward mortgage, where you have the typical payments.
So, what happens is the reverse mortgage lender, just like a traditional mortgage, is the source of the funds. And so, what they do is the lender will pay to you a specific dollar amount that is then used to pay off. That existing forward mortgage or conventional mortgage. except that with the reverse mortgage, you never have a payment.
So, the payments are optional, which just means that by way of paying off that forward mortgage, that's gone.
Now, you have a new mortgage that's a reverse, and the payment becomes optional, which for a lot of retirees is a game changer in this season of life because getting rid of that mortgage expense, which is their largest expense, often means now they can balance the budget. But, the short answer is it comes from the reverse mortgage lender.
So it's the FHA m uh mortgage, right? It is FHA guaranteed.
So the lender when you close on that home equity conversion mortgage, there will be a 2% fee that goes to the Federal Housing Administration, and that's what makes this a non-recourse loan.
So, with a typical forward conventional mortgage, you're personally guaranteeing it. Yes, you're putting your home up for collateral, but if for some reason your home lost value and it was not enough to, you know, when it was sold to cover the balance on the loan, you're personally responsible. That is not true with a home equity conversion mortgage. And that's why you pay that 2% fee. The Federal Housing Administration is guaranteeing that the home.
You know, is the only collateral, you're not personally liable for it. And yes, it would be FHA guaranteed.
So actually, you actually keep the the deed that was a person. you know, the first person own the property, right? That's correct. Just like a forward mortgage, you remain the owner. Uh there's just a lien on the property and instead of it being the lien from the current lender, it's a lien from the new reverse mortgage lender.
And so, therefore, that lien has to be satisfied before the funds are available at closing or upon the sale at your death for your estate. Right, so yeah, I'm gonna I'm gonna ask this one more time, nice.
So the um The deed, you keep the deed, it's still your property, right? That's correct. Yes, sir.
Okay. I was trying to get It's kind of confusing sometimes, so that's what I don't like to say. No, it does get confusing. I certainly understand. If you'd like to run some numbers on your property, if you stay on the line, our team will get your information and get somebody in touch with you and help answer your questions.
I'll also send you a book, Frank, called Understanding Reverse that I think will give you a lot of the ins and outs and perhaps help you to digest exactly what it is, okay? Thank you in Jesus' name. Yeah. Oh, thank you, Frank. And he loves you too, my friend.
Hold the line. We'll get your information, get somebody in touch with you, and get you a copy of this book. Lord bless you, sir. Let's go to Philadelphia. Hi, John.
How can I help? Yes. Hello, this is an IRS question and an IRA question. My wife has an IRA, and we take out required minimum distributions each year. Last year, among the fifteen or twenty that we took out, one went to our church.
And initially Our church did not want to receipt for a required minimum distribution. We went back to the church and said, well, we would need a letter saying the the the church was a five hundred one C three, we got that And then we sent the check to them again, and the church came back a second time stating. In all capital letters, They acknowledged receipt. required minimum distribution. But they would not accept it.
as a tax deductible contribution And it could not be reported on the tax form. And all of the other 501c3s either either receded it or receded it as being received from a required minimum distribution. What's the tax law, actually? Hmm. Yeah, interesting.
I'm not sure why they're saying that because they with the so was this a qualified charitable distribution? Is that what it is? Yes. Okay. Yeah, here's what they might be referring to: is see, the idea behind the qualified charitable distribution is you don't get to double dip.
So, the benefit here is that the amount coming out of the IRA and going to the charity is excluded from your taxable income, which every other distribution from an IRA is included in your taxable income for the year, except a qualified charitable distribution.
So, the benefit to you is you get to exclude it. And not add it to your taxable income from the year. You do not, though, get to also take it as a charitable deduction. And so that's probably what your church is referring to: they're just, and this is ultimately not between you and them, it's between you and the IRS.
So they really don't have a say in this. But what they're probably trying to do is just make sure you're clear that as that money comes out, you already got the benefit by it not being added to your taxable income for the year, which hopefully allowed you to give more because you didn't have to worry about the tax liability, but you do not then get to add on top of that a charitable deduction against income, federal income tax. Does that make sense? Yes, it does. And I appreciate you taking your time.
And I do appreciate your show. And the Lord bless you.
Okay, God bless you, John. I love the idea of the qualified charitable distribution. I think you were right on to do it. And again, it's the only way to get that money out of that IRA. And not have any tax liability associated with it.
But yeah, at that point, though, it does not qualify as a charitable contribution for a further. Tax deduction. We appreciate your call. Call anytime.
Well, folks, that's going to do it for us, man. We covered a lot of ground today.
So appreciate you being a part of the broadcast, listening, calling, engaging with us, and for your kind remarks, too. We always enjoy hearing how the program has blessed you. In fact, if it has blessed you, let me invite you to consider becoming a Faith Phi partner. These are those folks who really value the ministry here at Faith Phi and are a part of the team that makes this happen. Faith Phi partners give $35 a month or more to the ministry, and we invite you into the family.
One of the ways we do that is to make sure you get pre-release copies of all of our studies and devotions. Just go to faithphy.com/slash give to learn more. Thank you to Gabby, Amy, Dan, and Jim. We'll see you tomorrow. Faith in Finance is provided by FaithFi and listeners like you.
