This Faith in Finance podcast is underwritten in part by Movement Mortgage. Movement provides residential home loans in all 50 states. Founded in 2008, amidst one of the biggest financial meltdowns in American history, Movement set forth on a mission to create a movement of change in their industry and in communities. Learn more at movement.com/slash faith. Movement Mortgage LLC supports equal housing opportunity, NMLS number 39179.
For licensing information, please visit NMLSconsumerAccess.org. Could a reverse mortgage be a widow's best friend? Hi, I'm Rob West. Since women typically outlet men, many will one day carry the financial load alone. Today, Harlan Akola joins us to explain how reverse mortgages have changed and why they can offer widows stability, dignity, and confidence for the years ahead.
And 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 decisions.
Well, it's always a treat when Harlan Akola joins us because every time we walk away with fresh insight on reverse mortgages, Harlan is with Movement Mortgage, a proud underwriter of this program. And Harlan, it's great to have you back. Blessed to be here, Rob. Thank you. Harlan, you've often said a reverse mortgage can be a widow's best friend.
Explain what you mean by that.
Well, yeah, that's one of the reasons why I'm in the business. I heard that this was something that hurt widows. And so I was going to just make sure that I stayed away from it and learned as much as I could about it 20 years ago. And then I realized that it was actually something that helped thousands, literally millions of widows across the country because women almost always outlive their husbands. Even in studies where men and women live nearly identical lives, women still live longer.
That's just the way we're made. And that creates what we call in the business a longevity risk, the challenge of stretching resources to last for a longer life. And too often, couples plan their retirement as though they're going to be together until the end, not realizing that usually it's the wife with anywhere from two years, five years, ten years that is still there after her husband is gone and with decreased income. Yeah, I think that's well said. Harlan, you've also shared before that reverse mortgages look quite a bit different today than they did years ago, especially with new measures to protect widows.
So tell us more about that.
Well, the biggest change in the law, the FHA mortgage insurance, was about 10 years ago. Even though the protections were there before when Reagan put it in place in 1988, it still allowed people to decide whether or not they wanted to include their wives on title. And some foolish husbands took their wives off from title, and then when they died, their wives had to move out of the house or pay off the loan. And that meant that some widows actually lost their homes because they weren't even on the loan. But when that ruling changed in 2013, it required anybody that did a loan to make sure that their spouse was on the loan and protected by the loan and on the title of the house.
And that really is the biggest thing that has helped us shed our old reputation and made it completely safe. Wow. Yeah. Those are big changes. I know you care deeply about this, and I know it's actually personal for you.
So would you mind sharing a bit of your own story as it relates to these products?
Well, I remember when we got done closing in our reverse mortgage, my wife reached over and squeezed my hand and said, No, I'm going to be okay, even if something happens to you. You've been telling other people about this, and now it's real for us. And I just, you know, it instantly had a tear in my eye because, yes, that was always my plan, but all of a sudden it was reality. And she was always a stay-at-home mom and took care of our raised our four sons. And so her Social Security is very low, and she'll just have mine when I pass.
And so she can stay in the home as long as she wants. And it freed up money for life insurance and investments, which allows her to have more options after I'm gone. If I go first, which is, of course, likely, I'm three years older as well. And so I did it for my wife more so than any other purpose, even though it helps us with taxes and helps us with income. It's also something that's good for her.
And my sister, who's a widow, even used her reverse mortgage to fund alternative cancer treatments. And she's alive today because. She had that resource. And so it's something that has hit close to home. You know, as it relates to widows, we've got just about 45 seconds.
What tends to happen when the husband is the first to pass? And how does that relate to this? Almost always, income goes down by 40%. And the worst thing is, if there's still a mortgage payment, many widows simply can't afford to stay in their home, and it's often set up completely for a foreclosure or a forced sale, which is exactly one of the most secure things that is taken away at that time. And so, a reverse mortgage allows that surviving spouse to remain in that home that they love with dignity and security for as long as they wish to live there.
And that is what's so important to us. Yeah, it sure is.
Well, and I so appreciate how you and the team at Movement Mortgage lead with education.
So, folks, if you want to know more and how this might apply in your situation, head to movement.com/slash faith. Harlan, thanks for stopping by, my friend. Thank you. Have a great rest of the day. That's Harlan Akola with Movement Mortgage.
For many widows, a reverse mortgage can be a powerful way to provide in that season of life. Movement.com/slash faith to learn more. We'll be right back. We're grateful for support from Movement Mortgage, who provides residential home loans in all 50 states. Guided by a mission to love and value people and a goal to redefine the mortgage process, Movement seeks to help others achieve their financial goals.
You can find out more at movement.com/slash faith. Movement Mortgage LLC supports equal housing opportunity, NMLS number 39179. For licensing information, please visit NMLSconsumerAccess.org. We are grateful for support from Praxis Investment Management. Since 1994, Praxis has offered investment products designed to meet practical needs for everyday investors seeking to steward their assets consistent with their desire to promote positive social and environmental impacts.
Praxis aims to bring a faith-based approach to ETFs, mutual funds, multi-fund portfolio solutions, and money market accounts reflecting their 500-year-old Anabaptist Christian faith tradition. More information is available at PraxisInvest.com. Great to have you with us today on Faith and Finance from Rob West. Looking forward to taking your calls and questions today. Whatever's on your mind, give us a call: 800-525-7,000.
That's 800-525-7,000. We're looking forward to diving into whatever financial topics you're wrestling with, whether it's your spending plan, maybe it's paying down some debt, giving wisely, or even saving for the future. Again, lines are open. This is your time to call. They will fill up 800-525-7,000.
Let's begin in Mississippi today. Hi, John. Go ahead, sir. Hello. You mentioned a Christian savings and loan, and I was unable to get contact information.
Well, that's an easy one, John. I can absolutely. There's only one, in our view. We have a longtime partner called Christian Community Credit Union. And what we're finding is that increasingly, God's people are wanting to align their banking partner with their values to make sure that the companies they're doing business with are aligned with their values as believers.
And so, Christian Community Credit Union is just that: serving God's people as a trusted banking partner with deposits and loans, and finding compelling yields on their CDs and savings accounts, but also taking a portion of the profits and sharing with ministries, not only here in the United States, but around the globe, doing great work in the name of Jesus. And the best way to find Christian Community Credit Union is at joinchristiancommunity.com.
So that's just simply joinchristiancommunity.com. Is that what you're looking for? Yes, sir. All right. Very good.
Well, thanks for checking in with us today. Glad we could check something else off your to do list.
Now the next step is yours to reach out to those fine folks. But we appreciate you being on the program today. Florida is where we're headed next. Tony, go ahead. Yes, I was just saying to your producer that I have a few savings, but I don't feel if I were to be in a real emergency.
I don't think that would cover me, so that's been a concern. I work a full time and then I have a part time, but it feels like I'm just working to pay bills. I have a few savings, but It's just I feel like I'm stretching myself. Yeah. And I don't know what to do.
Yeah. In in addition to my student loan, which I'm trying to pay off. Yeah. Well, the first thing I would say to you, Tony, is You're not alone. There is a lot of people in this same position in their 50s who feel like they're behind.
And I would also say it's not too late to make progress with a focused plan. And so I think the steps forward are: first of all, you need to get a clear picture of your cash flow.
So, you need to write down all of your income, write down your expenses, and just like all of us, look for places to trim. Even the smallest amounts can free up money to save or pay down debt faster. And then second, you want to attack the debt strategically. The student loans may feel never-ending. But there are options.
If it's federal student loans, there's income-driven repayment options, there's possible forgiveness programs. At the very least, you can just stay current with the monthly payment, even if it's going to extend for a you know a considerable period of time. You want to stay on top of that. If you have the ability to reduce the payment through an income-driven option, great, take it, because that's going to free up resources that you can use for step three, which is to build a starter emergency fund. Even saving up to $250 or $500 is going to provide a cushion that's going to keep you from adding new debt when surprises come, and they will.
So, if you could get to a place once you write down your income and expenses and find a few places to trim small expenses, if you could even put away $25 or $50 a month. to get that savings account started, that's going to break that cycle of debt. And those are really the next steps. Here's what I'd like to do for you: I'd be happy to provide a certified Christian financial counselor. Who could walk alongside you?
We would pick up the cost for this just as our gift to you. But this is somebody who's trained, who works with God's people to help them with their budget, help them with creating a spending plan, a debt repayment plan, and answer questions. You all would meet together probably through a Zoom meeting or over the phone several times. Again, it wouldn't cost you anything. And perhaps as they pray for you and answer your questions and help you create that budget, maybe giving you some fresh ideas on ways you could cut back, perhaps that would be the missing piece to kind of get you pointed in the right direction and feel like you're making some progress.
But how does that sound? And that's Sounds good. I have I did start, I itemized my bills, so I did start doing that. My biggest thing right now is my student loan. I have been paying down on my credit card.
I did pay off two. And what I did, I kind of d like divide my paycheck and just kind of divide it up.
So that's how I was able to pay off the other two. But it it is a stretch. But yeah, um, that sounds good. Are these federal loans? Yeah, so I was also I taught before.
I recently went to my district and applied for the teacher loan forgiveness.
So I sent in that application.
So I'm hoping I'll be able to take some money off that, or they'll be able to take some money off that.
So, obviously, that would be a game changer. And so, I would certainly pursue that. You could look at income-driven repayment options.
So, depending on what your income is, you may be able to get those payments down.
Now, that's going to extend it out longer because the interest doesn't come down, just the payment does, but it may be the key to you being able to balance the budget and have a little bit more cushion.
So, both of those are options I would pursue. But if you would like one of our certified Christian financial counselors to work with you, we'd be happy to provide that. Yes. I love it.
Okay. All right, great.
Well, you stay on the line. We'll get your information and get somebody in touch with you. And listen, keep it up. It sounds like you're doing a great job. I love that you've made some progress on some of your debts.
You've got this. Remember, the Lord is your provider, but it's our job to be that faithful steward, which means we make the hard decisions. We're disciplined one step at a time, realizing this is a high calling because you and I are money managers for the Lord's resources. And that's a pretty important task we have. Thanks for your call today, Tony.
Let's go to Alabama. Hi, Mike. Go ahead. Hey, I called a while back and told you I was going to talk to my adviser. I told you I was thinking about separating because of Differences of moral issues with my work right now.
You'll be happy to know. You'll be happy to know that the only thing my advisor didn't say was. I listened to Rob, and I agree with Rob on everything he should have told me.
So it was like listening to you in the office.
So you two guys were 100% spot on. I love it.
That's great. It would be next time I go on vacation, maybe he's going to be the host. Uh maybe. I've got a 401, regular 401k with my employer and a hour and a Roth. All right.
is there when it comes time to retire and I move those out Do you have to take one before the other? Or is there a better option to take one before the other? You mean in terms of which one to to draw from first? Yes, yes. Do I have to draw from one or is there a better is it better to draw from a particular one than another one?
Yeah. No. I mean, the only requirement you're going to have is that the the traditional 401k is going to eventually, when you get to age 73, unless the law changes, is going to have a required minimum distribution each year, which the Roth never does.
So that one you never have to take anything out. But apart from that, it's gonna be completely up to you. And really, what it's gonna come down to is the tax environment. And so, what is your taxable income? What are tax rates?
And does it make more sense to pull from the tax-free, which is gonna be the Roth? versus the taxable You know, depending on what's going on at that time. And I think that will be a decision you'll probably make in real time with your CPA as you evaluate the situation. But you're not going to be forced to take one or the other apart from that required minimum from the traditional. We've got lines filling up.
We'll be back with your questions right after this break on faith and finance. Stick around. At FaithFi, we believe that money is a tool to advance God's kingdom. When you become a FaithPhy partner, you help more people discover the freedom of biblical stewardship and the joy of seeing God as their ultimate treasure. As a thank you, you'll get early access to our newest studies and devotionals, our quarterly Faithful Steward magazine, and the pro version of the Faith Phi app.
Become a Faith 5 partner with your gift of $35 a month. or $400 a year at faithfy.com slash partner. Faith in Finance is grateful for support from Sound Mind Investing. For more than 30 years, they've offered financial wisdom for living well. SMI provides step-by-step guidance for do-it-yourself investors.
from those just getting started to those getting ready for retirement. More information, including a short video webinar on profit and peace of mind no matter what's happening in the market, is available at soundmindinvesting.org. Great to have you with us today on Faith and Finance. Here in our final segment today, we're taking your calls and questions on anything financial. That number to call 800-525-7000.
That's 800-525-7000. I've got room for a couple of additional questions. We'll be headed to Texas in a moment.
Well, actually, both calls from Texas. Let's start with Jeff. Go ahead, Jeff. I have a 401k question. I I I switched jobs and I left my 401k at my previous.
Yeah. And um now they're closing. They're gonna close down. And I don't know that I'm going to stay where I'm at.
So I'm unsure about moving it here. what would you say where should I put that four hundred one K? Yeah, it's a great question. Once you separate from service, you have the option to roll it out. and you would want to roll it out to an IRA.
Now, keep in mind, just as a general practice, even when a company shuts down, your 401k money is safe. It's held by a planned custodian, not the employer, regardless of the reason they're shutting down. But you want to roll that out to an IRA. But prior to doing that, you really want to determine how you want to manage it. Is this something you're going to want to manage yourself and, let's say, pick amongst perhaps mutual funds or ETFs or both, you know, and make those selections on your own?
If so, you'd probably want to go to a Fidelity or a Schwab, you know, that would offer a wide range of investments, far more than you have access to inside your 401k, you know, with low costs and great websites and apps and so forth. Or if you want to have an advisor manage it, like you were going to connect with a Certified Kingdom Advisor or something like that, you'd want to select that advisor first and then have the advisor open the IRA wherever he or she custodies their client assets, and then they would handle the rollover from the 401k for you. Yeah. And so that's really the next decision for you is how you want to go about the management. Gotcha, gotcha.
I don't know a whole lot about all that. And as far as doing a schwab myself, should someone who Doesn't know much about it, do it? No, I mean, I think it's, yeah, I definitely like the wise counsel approach here. How much do you have in that 401k roughly? About 1.2 million.
Yeah, I mean, so this is a Big nest egg, you've spent your working years building that up into a really sizable account. The last thing you want to do is kind of put it on autopilot.
So, even though there's going to be a cost to that, I mean, perhaps you might have, I mean, let's say it's one and a quarter percent. Uh, you know, that would be 15,000 for the year. But the idea is that by having that active management, somebody that's you know overseeing this for you and making those decisions, you know, that is going to allow you to, first of all, protect what you've amassed, but grow it appropriately with a really well-thought-out investment strategy. And I think that's the right move for you. Um, you know, even though this in a really strong market, you know, it kind of begs a lot of folks think, well, the market just always goes up, so therefore, I really can't miss.
And that's just not the case. I mean, we could get into a recession, even with the Russell 2000 hitting new all-time highs. You know, there's still only 50% of stocks that are above their 200-day moving average.
So, you really do want somebody who's overseeing this who can build out the right investment strategy for you and stay on top of it and then not react emotionally, you know, when the market's up or down.
So, my recommendation, if you don't have somebody, would be to go to our website. Website faithfi.com. That's faithfi.com. Click find a professional. I'd interview two or three CKAs there in Texas and find one that's the best fit.
Alrighty, sir. I sure appreciate the information. Absolutely, Jeff. Thanks for your call, sir. Lord bless you.
Let's stay in Texas. Elizabeth, how can I help you? Yes, thank you for taking my call. I have a account investment. And it's a moderate growth.
Income with moderate growth.
Okay. And I want to take it out and I want to know: could you please tell me where would C D's be safe or I don't know where to I'm not satisfied with this.
Okay. Very good.
Yeah, if you're wanting to get more conservative, the options you'd want to look at would be: number one, you could do CDs, certificates of deposit. They are very safe because they're FDIC insured, so backed by the full faith and credit of the United States government. You could use treasury bonds. Which are very safe, and you'd buy them to. You'd buy them direct from the treasury or via a bank or a broker.
And then the third option you could look at if you're looking for safety would be what's called a fixed annuity.
Now these are a little more complicated. They're sold by insurance companies, but you could lock in a steady rate that would know transfer the risk over to the insurance company. As long as you select a highly rated insurance company, that should be very safe as well. I think any of those three could work very well for you.
Okay, okay. That's all I needed to know. Thank you so much, guys. All right, Elizabeth. Lord bless you.
Thanks for being on the program today. Let's see. Indiana is where we're headed next. Hi, Karen. Go right ahead.
I just have a question on guidance for health insurance. Where you can go if This is affordable and a limited income. If you've had a past health history, I'm afraid I'll be penalized for. Because I've been sick for a I don't know, about a year ago, I went through some major health issues and We're running out of our Resources. My husband's retired.
I'm on a limited income now. Is there anywhere you could direct me to and someone to talk to on this? Yeah, I mean, you've got a couple of options. You could go to the federal marketplace where you can compare plans and see if you qualify for subsidies.
So that's healthcare.gov, healthcare.gov. It's free, it's trustworthy, and you can look for a plan that fits your needs and budgets. You know, the top private health insurance comparison sites are eHealth Insurance. Another one would be health markets. And then I'll give you a third one, Health Sherpa, S-H-E-R-P-A.
Any of those could be an alternative to healthcare.gov. And what you're looking for is the plan type, the coverage breadth, the support level, any subsidy access if you qualify for it.
So those would be what I would be looking at in terms of the various options.
Okay, all right, thank you very much. All right, we appreciate your call today.
Well, folks, we covered a lot of ground today. Always a joy to be along with you. I'm grateful for the invitation you give us into your financial lives each day when you call and share your story and ask questions. It's a sure privilege to be able to walk alongside you, encourage you. And I hope that's one of the outcomes for today: you felt encouraged and uplifted.
That, you know, as we take on this large responsibility, it's massive-of being a money manager for the King of Kings, we want to be found faithful. That's our goal. We want to make God our ultimate treasure, not the things of this world. They don't last, they don't satisfy. God alone is our abundance.
But money is a good gift from God. We want to use it wisely. We want to spend it well, even enjoy it. Give it to be a part of God's activity, and when we do, we experience blessing that follows. May not be financial, but there certainly is blessing when we give generously.
Hey, let me mention: if you'd like to check out our FaithFi app, maybe you're having trouble staying on budget, you can download the app that Julie and I use to manage our finances called Faith Phi on our website, faithfi.com. Just click app, and again, if you'd like to support our work, just go to faithfy.com and click give. Hey, a big thanks to my team today, Jim Henry, Devin Patrick, Dr. Robert Youngblood. and the rest of the team here at Faith Fi.
Have a wonderful day and we'll see you tomorrow. Bye-bye. Faith in Finance is provided by Faith By and listeners like you.
