This faith in finance podcast is underwritten in part by One Assent. If you believe God is the owner, then that makes you a steward. And as a steward of God's resources, shouldn't you consider aligning his assets with his principles by investing in companies that bless mankind instead of causing harm? Our trusted partner, One Ascent Investments, calls this values-based investing. One Ascent believes that if your values inspire the way you live, they should also inspire the way you invest.
To learn more about making a positive impact in the world through your portfolio, please visit investments.1ascent.com or speak with your financial advisor about OneAccent Investments today. The end of the year is coming fast, and while most of us are busy with family gatherings, travel, and holiday plans, it's also the perfect time to get financially organized. I'm Rob West. From reviewing your goals to maximizing retirement contributions and planning your giving, there's still time to finish the year well. Cole Pearson joins us today to share some practical steps to prepare your finances for the year ahead.
And then it's on to your calls at 800-525-7000. This is Faith in Finance, biblical wisdom for your financial decisions.
Well, it's always a pleasure to welcome back our friend Cole Pearson, president of investment solutions at One Ascent, a family of companies committed to helping investors align their portfolios with their biblical values. One Ascent is also a valued underwriter of this program. Cole, great to have you back. Thanks, Rob. Great to be with you.
Cole, this time of year can feel pretty hectic. I mean, we have family gatherings. Of course, there's the travel, all the holiday plans, but it's also an ideal moment to get our finances in order.
So I'd love for you to help us do that today. And where should we begin? Yeah, absolutely, Rob. As you mentioned, as the year winds down. It's the perfect time to pause, make sure that our financial life still reflects our actual life, our goals, and values.
And so we always encourage investors to take some time to sit down with the people that they make financial decisions with, whether that be their spouse, other family members, maybe even a financial advisor. And talk about what's most important to you as a family. It's important that these times we get to spend time with family to remind ourselves of what's important. And so these conversations help ensure that we're managing and investing money in a way that aligns with the life we wanna live and the values we wanna pass on. And so, as we start that process, as you're moving into the end of the year at One Ascent, we've developed some tools to help clients look at their finances through three key lenses.
One of those is perspectives. Right, how do you think and feel about money every day? We get to interact with money, and whether we're spending it, we're saving it or investing it or giving it away. And as you've often said, Rob, money is just a tool, right? No one use of money is necessarily better or worse than another, it's just a tool.
But what's important is to understand how God's wired us and which uses come naturally.
So that's perspectives. And another tool that we've developed is priorities.
So now that we understand our perspectives, now let's clarify what matters most to our family. What is this money for? Why has God entrusted it to us to steward? Is that leaving a legacy? Is it providing security?
Is it maybe giving generously or freeing up more time for relationships? Knowing those top priorities allows us to give the dollars that we're stewarding a job, right? Those dollars have a specific purpose that brings focus and direction to our plan. And then finally, as milestones, identifying what's happening in our life right now. At the end of the year, it's a good time to take stock of what's happened.
Has there been a change in the family? Either loss or new life, maybe a grandchild or a child's been born, any changes in career or health. Right, these transitions they put money in motion, and it can be a signal to us that it's time to review our plan and make adjustments.
So, together, these three lenses-perspectives, priorities, and milestones-help us ensure our goals, our plan, and our values are all aligned. Oh, that's really well said. And I love that you start with the values, really the why side of the equation. I know you mentioned generosity, and that's near and dear to your heart and the team there at One A Cent. What steps can families take now to prepare financially for the year ahead in this area of generosity?
Yeah, with giving, making sure that it's intentional first and that it's aligned. The way we give should reflect those same values that guide our investing decisions, our planning decisions. And so, for many families, that could mean looking at generosity and how it fits into the broader goals. Generosity can be both an act of worship. and a reflection of our values and action.
And so, whether you're investing or giving, we think of both as investing God's resources. How do we make sure that they're all pulling in the same direction? Talking about that as a family, especially here as we move into the end of the year, it creates unity, creates clarity, and it creates impact. It allows our resources to tell a consistent story about what matters most to us. We've got just forty five seconds left.
Cole, you mentioned investing. Perhaps this is the year in twenty twenty six that some of our listeners will say, I'm going all in on faith-based investing. Is a first step to screen your portfolio and see where you're at? I think absolutely. When we think about faith based investing, first, what are we invested in that may not align with our faith, with God's principles and God's values?
So screening is a great place to start to get clear on where we may have misalignment.
So that we can move to alignment? Where do we need to repurpose dollars and redeploy dollars back into companies that are bringing blessing and align with God's principles?
Well, it's so well said. Cole, we're so thankful to be partnered with One Assent. Thanks for your sponsorship and your friendship. We appreciate you. My pleasure.
Thanks for having me. That's Cole Pearson with One Assent. They believe your investments can reflect your values by directing your capital toward companies that make a positive impact in the world. To explore a new way of investing that aligns with your values, visit oneascent.com/slash faithfi to get connected today. That's oneascent.com/slash faithfi.
We'll be right back. What we do is very special and it's very unique. This is Bethany. She is a Certified Kingdom Advisor. I became a CKA because we're not building bigger barns and we're not trying to figure out how can we just amass more and more and more.
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So glad to have you with us today on Faith and Finance. We're looking forward to taking your questions today. If there's something happening in your financial life, this is the place to go today. 800-525-7000 is the number to call: 800-525-7000. We do have some lines open at the moment that will probably not last.
So, this is your chance to get right through. And again, that number: 800-525-7,000. We're going to begin in Ohio today. Bob, go ahead. Yes, I've been offered a settlement.
from a company Um And I've had no experience. It's not a huge amount of money or anything, but the law firm handling this is encouraging need to accept the offer. uh instead of pursuing prolonged litigation. Um And I realized probably the longer it would take, it's already been a few years they've been working on this. I'm probably not going to get a lot.
And the longer you drag it out, it's probably going to be a lot more in fees and whatnot. But I just thought since it's a very unusual situation that I find myself in, if you had any comments or thoughts Yeah. You whether or not I had to just accept the settlement and Oh, it width. Yeah.
Well, I appreciate that question. And it can feel like a big decision. And I love that you're really thinking through this thoughtfully. I would say kind of bottom line is Because I don't know the situation or the dollars or kind of what the issue is at the heart of this lawsuit. But I would just say at a high level, if the settlement amount is what you would consider fair and perhaps, and this is a big deal, provide some closure, I think it can make sense to take it.
You know, if it seems too low and they, you know, you have a strong case, it may be worth continuing, but only with sound legal counsel. But I think either way, you really should never sign a settlement agreement without an attorney reviewing it first. It sounds like there is an attorney involved. But, you know, I think at the end of the day, you really need to understand the strength of the case, the evidence, the cost, and stress of going to court. And I think an attorney can really give you a good understanding of what's a realistic court outcome and compare that to the settlement offer.
And then, as you said, you need to evaluate the legal fees and the other expenses that would be associated with this, both in money and time, to keep this moving. And I think at the end of the day, in your 70s, I would ask the question: do I have the time, the energy, the peace of mind to go through months or even years of legal process? And sometimes closure is worth more than a potentially larger number down the road.
So I don't know if that's helpful at all, but maybe a few other things to think about. Yeah, it's sort of the way I've been considering this. Uh it's very you're very much confirming my at least my feelings toward this. Um You know, and and the law firm did indicate that here I know that the fees are probably going to be enough, but I'll probably be lucky to come out with a half of what what the settlement is, but when it's all said and done. But you're right, that that way it's finished and They can move on with things.
Yeah, I think that's right. I think that's an appropriate way to think about it. But, you know, if you're still wrestling with it, I would really use your attorney as a good sounding board there just to think through the time, the commitment, you know, how long this could go on, the expense, what a realistic outcome might be, and then pray through it. Ask the Lord to give you wisdom. James 1:5, if we lack wisdom, we should ask the Lord and He'll give it to you.
And so let's just trust Him in that. But hopefully, it's given you at least a few more things to think about, Bob. Call anytime, sir, if we can be of help to you. Lord bless you. Let's go to Tennessee.
Hi, Valerie. Go ahead. Behind! First of all, I'd like to say thank you so much. My husband and I look forward to listening to your show, and we've learned so much from you guys.
And thank you.
Well, that's great. Thank you for saying that. Yes, my question today is on Social Security. I started drawing last year at the age of 65. I've been receiving emails saying that Donald Trump is going to be doing away with Social Security and increasing Social Security or retirement age to 70.
If he does, which I didn't call the Social Security office here in town, I'll back up for just a second and ask them about this. Honestly, they don't know. They don't have any answers.
So, you know, it's just, I don't know what to do. If I lose my Social Security now after retiring and then just working part-time, I just kind of want to know what you know about what's going on. Yeah.
Well, it's a great question, Valerie, and I can understand how it's weighing on you. And let me just kind of unpack each piece of this because it's a great question. And because at the, you know, the bottom line of all this, but I'll unpack it in more detail, because you are already receiving benefits, none of these changes that are being floated would reduce what you're currently receiving. But let's walk through it.
So once you file and begin Social Security benefits, your award is locked in, your benefits.
So your monthly benefit amount, you know, plus cost of living adjustments along the way. It doesn't retroactively get cut because of changes in the law.
So you might see some headlines or get a kind of a clickbait email that says, they're raising the retirement age. To age 70. And what they mean by that is they're talking about raising the full retirement age to age 70. But again, if that happened, and it's certainly only being discussed at best, it would only affect people in the future, not those already filing.
Now, what about the Social Security Trust Fund?
Well, the Social Security Trust Fund is expected to be exhausted in the next decade unless Congress acts.
So, some of the policy proposals, and by the way, even if it was at zero in 2034 or 2035, when it's projected to be, if nothing changes, they'd still be able to pay with current revenues at that time 80% of benefits.
So, it's not like everybody's Social Security goes away at that point, but they are discussing policy proposals. To shore it up so it doesn't run out. And I would say, just in my opinion, and that's all it is, I think that's what would happen. I can't imagine policymakers allowing anything like that to happen, even a reduction from 100% of benefits to 80%, just because that's too important for the voter base. They'd have to look their constituents in the eye and explain why they didn't make changes to shore up Social Security.
And I just think they're going to do that.
So, what are some of those proposals that are being floated?
Well, one of them is raising the full retirement age from 67, where it is today, to 69 or even 70 for younger workers. But Donald Trump has actually publicly stated he will not raise the retirement age or cut benefits for current or near retirees.
So, you would clearly fit into that category. You know, so I think at the end of the day, you know, you don't. Really, need to be concerned about this. Yes, changes will likely come between now and that point where it's going to run dry, but it will almost certainly only affect those that have not started collecting, if that makes sense, because you'd be grandfathered in under the rules in force when you filed. Great.
All right. Great answer. Thank you so much. You have put me at ease. All right.
Thanks for calling, Valerie. Lord bless you. And thanks for your kind remarks about the program. That means a lot. Folks, I hope today is an encouragement to you.
That's our goal: trying to help you see God's heart from scripture as it relates to money management and give you some wise principles that you can apply to your own situation. We'll take a quick break and then we'll come back with our final segment just around the corner. By the way, if you love the program, want to help support our work here, becoming a partner is a great way to do that. Just head to faithfy.com/slash partner to learn more. If you become a partner, we'll send you our magazine and studies and devotionals to your door.
We'll be right back. FaithFi is grateful for support from One Ascent. One Ascent believes that your values inspire why you invest and how they can inspire how you invest. OneAcent's goal is to provide solutions designed for every need and invest in businesses that bless the people and places God has made. They want to help investors do well by doing good, to explore a new way of investing that aligns with your values.
More information is available at onascent.com and by clicking Analyze My Investments. 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. We'd love to take your calls and questions 800-525-7000. Let's go to Mississippi. Hi, Miguel. Thanks for calling.
Go ahead. Thank you so much for your time and all you do for us. Thank you. Absolutely. I'm almost sixty two.
And I was thinking of go ahead and taking my Social Security. Yeah.
It'll be probably about $1,800. Instead of me waiting till sixty seven, which will be twenty four hundred dollars.
Somebody told me that the breakpoint even It's not worth me waiting. You're sixty seven. Can you explain why Yes, I'd be happy to. It's a great question. Go ahead, finish your thought, though.
Well, and I'm going to keep working and invest that money And so, how would that work? How would they come out of my Social Security? Yes. Yeah, it's a great question.
So you've asked something that's on the minds of a lot of people, and so I'm glad you raised it.
So let's just kind of unpack this one piece at a time. First, what happens if you take it early?
Well, if you take it at 62, to your point, your monthly check's going to be reduced permanently.
So, the reduction that happens, you will not get that back. You're locking that in, and it's typically going to be reduced by about 25 to 30 percent compared to what you'd get at full retirement age, which for you is probably going to be 67 or close to it.
Okay, so if you were gonna get 2,000 a month at 62, you might get 1450 a month for life. And that reduction doesn't go away. It's permanent. And since you're still working full time, you know, you're going to face that earnings test, which you mentioned.
Social Security is going to withhold from your check. $1 for every $2, you go over that limit. Until you reach your full retirement age.
So that permanent reduction because you took it early, that's locked in. And then you're going to get a further reduction of a dollar for $2 for every $2 you go over the limit, which kind of flies in the face of a part of your rationale here, which is, well, if I can take the money now, you know, I don't need it.
So I can invest it and get that growing for me.
Well, not really, because you're going to get that check cut down, which means you don't have the money to invest.
Now, that portion that's reduced, not the permanent reduction because you took it early, but the portion that is taken out because you earned over the limit, you will eventually get that back later. But it's not going to happen until you reach full retirement age. And then they're going to increase your check a little bit every month until you get paid back. But it might happen over 10 years, but you will be paid in full for the amount that was withheld because you earned more than the limit, if that makes sense.
So, what is the benefit of waiting?
Well, If you wait until full retirement age, you're going to get 100% of your benefit. And then if you wait even beyond that, you can get about 8% more per year. And the benefit there is that that guaranteed increase of about 8%. In the form of a reduction by taking it early, you're not gonna find an 8% guaranteed return anywhere. Even if you got 100% of the money and you could put it in the stock market, could you do better than 8%?
Yes, but would you get a guaranteed 8%? No, that doesn't exist. And so I think that's why it does make sense, especially if you don't need the money because you're continuing to work to go ahead and wait until full retirement age and get 100% of your benefit. It really, though, comes down to three things: your health and longevity, which only the Lord knows that.
Now, if you were in poor health, Or didn't expect a long retirement because of health considerations. Again, that's in the Lord's hands, but you could use your judgment and say, no, I'm going to go ahead and take it early. But if you're healthy, And you don't need the money because you've got income and you plan to continue to work full-time, which means you're going to get up above that earnings limit. It's going to be reduced anyway. Then I would absolutely wait.
Here's the reality: You know, once you reach age 65, Life expectancy, and that's all it is, we're talking averages here, for a 65-year-old American male is about 82. And that's about the break-even.
So, if you were to wait until age 70 to tick it and get a check about 25% higher than your full retirement age check, you'd need to earn that check for about 10 to 12 years to be paid back for all the money you didn't get between full retirement age and 70. But as long as you lived to at least age 82, then for the rest of your life, you'd have a check about 25% higher than you would have had, and you would have been paid back for everything you didn't get. Between 67 and 70.
So, boy, I've given you a lot of information there. I'll stop and just see what your thoughts are. No, that makes great sense, Rob. It really does. I mean, what I What I was thinking of, you know, maybe retiring and then just taking a small part part-time job.
And just to um For benefits only. and then just go ahead and take my social security.
So but, you know, I'm in great health. Thank God. And so I'm thinking of just Keep working, yeah. Just keep working and then just let the Lord handle it for me. Yeah, I think that's a great idea, and He will.
And keep in mind, and you know, I'm not saying that you need to stay in the same line of work, I don't even know what you do, but remember, you know, God's work story began before the fall. Adam and Eve were to cultivate and keep the garden. And if you look at the data on what happens to your health and your sense of purpose and engagement, not to mention how you can bless, you know, those with your wisdom and experience, I love you staying fully engaged in work.
Now, that work may change over time, and at some point it may involve quote work, you know, unto the Lord that doesn't involve pay. But this idea that our culture drives, that you know, we're supposed to get a gold watch and a check and just sit on a rocking chair at starting at 65, that is just not a part of God's plan. And I'm not saying that's what you're describing here. But I think when we disengage We are missing God's best because God's picture of that elder at the city gate pouring wisdom into the next generation and staying engaged and working with his or her hands as unto the Lord to bring about human flourishing. And just there's something hardwired into us by Creator God who was a worker.
With us being created in his image as a worker that gives us the opportunity to co-create with him to bring about his redemptive purposes in the world. And so, you know, in my view, we don't ever stop working. I mean, I don't fully, I don't intend to ever retire unless, you know, I have to. And even then, I'm going to continue to serve the Lord in a different capacity.
So, anyway, just think about that alongside the financial considerations, if you will, okay? I will, Rob. I will. That was perfect. Thank you so much.
God bless you, Miguel. I appreciate you, man. And thanks for calling today. Call anytime. You've been a lot of fun to talk to.
Hey, we couldn't do this without our team each day.
So grateful for my producer, Devin Patrick, for our call screener, Sandy Dickinson, and helping me with research today, Mr. Jim Henry, plus the entire team here at Faith Fi. I hope you have a great day. Lord willing, we'll be back to do it all over again tomorrow. We hope you'll join us then.
May God bless you. Bye-bye. Faith in Finance is provided by FaithFi and listeners like you. Yeah.
