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 findacka.com. Wise counsel is a gift, especially when it helps us steward money with clarity and purpose.
Hi I'm Rob West. Scripture tells us that safety and wisdom are found not in going it alone, but in listening well. Today, Sharon Epps joins us to talk about why wise counsel matters, how to discern the right voices, and what it looks like to seek help with humility and faith. And then it's on to your calls at 800-525-7000. This is Faith and Finance, biblical wisdom for your financial decisions.
Well, our guest today is Sharon Epps, president of Kingdom Advisors and a frequent voice here at Faith Phi. Sharon, great to have you in the studio.
Well, thank you, Rob. Sharon, Proverbs 11, 14 says that where there is no guidance, a people falls, but in an abundance of counselors, there is safety.
So why is godly counsel such a safeguard for believers as they navigate financial decisions?
Well, there's so many instances in scripture where God uses his people to give wise counsel. And so certainly scripture is the ultimate truth. But when we talk to wise counselors who speak from the power of the Holy Spirit in scripture, we can learn what God might have from us. It also protects us from blind spots and emotional decision making. As you know, that's one of the reasons we believe that you need a financial advisor, a third party that can help you with your decision making.
And it helps us to hear God in a new way, not just from our own lenses. But from the lenses of others who are deeply steeped in God's word. And then, of course, finally, humility: it humbles us to seek wisdom from others. I completely agree.
Now, many people feel pressure to figure everything out on their own.
So, what would you say to someone who's hesitant to ask for help because it might feel like a sign of weakness?
Well, let me be transparent here. That's me. I like to figure things out myself. Yes. But what I've really learned is that's rooted in pride.
It is thinking that I know everything or that I can figure out things. And we actually act in faith when we ask for help. And quite frankly, we give a blessing to other people to allow them to use what God's given them to help us. And so that's why trusted voices are so helpful in our life to help us avoid missed opportunities or missed steps. That's exactly right.
Now, I love when we can look to God's word to see this on display. The story of Rehoboam in 1 Kings 12 shows the danger of listening to the wrong voices.
So what lessons can we pull out of this story on how we make financial? Decisions.
Well, it certainly is easy to listen for people that agree with us. And that's exactly what Rehoboam did. He listened to voices that affirmed what he wanted instead of offering the truth. And just a little side note: the more power that you have, the more likely people are going to give you what they think you want to know. And so it's important to be sure that that power dynamic is considered when you're thinking about counsel or wise advice.
And so we need to prioritize godly and seasoned voices over peers who might just say what we want to hear. It keeps us aligned with God's purposes and even needs to challenge us. Yeah. Let's get really practical.
So, what does seeking wise counsel actually look like in everyday financial decisions?
Well, I mentioned it earlier. I think a professional advisor is a key who can help you integrate that biblical wisdom into planning, which is certainly a certified kingdom advisor. I think we need mentors who have walked ahead of us that can help us navigate new seasons of. Life. And then I think peer friends who will speak with integrity, honesty, be willing to call us out when we might be out of line.
And I think sometimes we need conversation over coffee-like conversation. And other times we need deep spiritual counsel and ask the Lord for wisdom what you need. Let's put this in practice right now, Sharon, and allow you to be that wise counsel for someone who's overwhelmed right now by a financial decision they need to make. What would you offer to them?
Well, the first thing I would say is don't go alone. I think Satan likes to isolate us, and then the problem just grows bigger and bigger and bigger. And so invite trusted spiritual friends into the process. And if you don't have them, go to your pastor, another spiritual leader, and ask them to help connect you to someone who can guide you wisely. And of course, take it to the Lord.
He is our best counselor. No doubt. That reminds me of James 1:5. If any of you lacks wisdom, let him ask God who gives generously to all. All without reproach.
Sharon, thank you for your wise counsel today and for being here. Always a pleasure. Thank you. That's Sharon Epps, president of Kingdom Advisors.
Now, if you're looking for wise financial counsel, consider working with a certified Kingdom Advisor, a financial professional trained to integrate biblical wisdom with sound financial planning and investing. You can find one in your area at findaca.com. That's findacka.com. Back with your questions after this. Stick around.
I was in ministry full-time and I was always looking for a way to integrate my faith with this new industry around money and finances. This is Mark. He is a Certified Kingdom Advisor. As a CKA, one of the best things I offer my clients is trust in knowing that they're working with a professional that understands their values. And I think in all of the different challenges that clients go through, if we can go back to trusting in God, then He'll make the path straight.
You can find an advisor like Mark at findaceka.com. Are you feeling overwhelmed by credit card debt? As followers of Christ, we are called to be good stewards of what God has given us. That's why our trusted partner, Christian Credit Counselors, is here to help. Their debt management program can help you pay off your debt 80% faster while honoring your commitments in full.
Take the first step toward financial freedom today. Visit ChristianCreditCounselors.org or call 800-557-1985. I'm so glad you joined us today on Faith and Finance. Whatever your questions are today, anything in your financial life, we've got lines open. You can call right now, 800-525-7000.
That's 800-525-7000. Our team is standing by. Let's begin today. We're going to head to Virginia. Melody, go ahead.
Hi, Rob. Thank you so much for having me. Absolutely, thanks for your call. It's a new year and my husband and I have not always been on the same page on finances and I'm determined for to do a better job this year in doing that somehow. I don't know how.
I believe you can do it. Maybe this is the start to that.
So one of the things is we moved We bought another house about a year ago that we've moved into and the house that we moved from, we're going to make a rental because there's like nothing for rent in that area and there would be enough money off of that mortgage rent to pay both of the mortgages monthly. and cover, you know, taxes, whatever. I'm trying to figure out so my my husband would rather like pay off that house or pay everything into that house. than to do than to pay the mortgages, which would create you know, other income to either invest or save or do whatever. But So the interest rate, I will tell you.
On that. house that's going to be PMA rental is like less than four percent.
So it's a really low interest rate. The new house is almost seven percent. Yeah. And he's wanting to prioritize the rental. Yeah.
Okay.
Well, I don't like to pick sides, so I won't. Let me talk about kind of both sides of this because there is a math equation here, but it's bigger than that. It's not just math, right? There's a peace of mind decision here as well. And I don't think there's a right or wrong decision, but let's start with just kind of the financial implications of this.
First of all, you're in a really good position.
So that's great. You have a rental mortgage that's less than 4%. That property is cash flow positive. That's good. You've got a primary home that is 7% plus.
That's pretty typical these days. Not ideal, but it is what it is. You're both still working, headed toward retirement. I mean, I think from a purely financial standpoint, and that's all it is, I wouldn't rush to eliminate a 4% loan on a rental that covers its own costs. That's historically cheap money, if you will.
It's, to your point, likely earning more than it costs over time, just in terms of the appreciation of that property, not to mention the cash flow. And it offers you some diversification outside of retirement accounts. We haven't talked about what else you have by way of investments, but this is obviously a way for you to diversify.
So paying that off early is usually not the best financial move.
Now, there's more to it than that. I would say, you know, secondly, that 7% debt deserves attention first.
So if you have surplus cash, I'd direct it toward the 7% primary residence. That's a guaranteed risk-free 7% return with every dollar of principal you pay off. It's going to improve monthly cash flow going into retirement if you can eliminate it. And it honors the desire to just reduce. Overall debt, if that's your husband's ultimate objective, but just in a smarter order from a financial standpoint.
Now, the rental income is really a retirement stabilizer. I mean, if you're able to keep the rental property as long as it's not onerous on you from just a time and a you know an attention standpoint, it provides inflation-resistant income because it's going to increase over time and the property will continue to appreciate as well. And it reduces pressure on Social Security and investments. But I think the emotional side of this matters. And so, if the instinct of your husband is debt feels risky as we age, I want simplicity.
I think a good compromise is to keep the rental as long as it cash flows, reevaluate it full retirement. Set clear benchmarks, but prioritize that 7% mortgage first. But, Melody, give me your thoughts, and I think you were going to explain further about your husband's thinking. Right.
So he actually is already retired. And I mean, we even considered pulling money out of our retirement accounts to pay off that mortgage completely so it would be free and clear. And then trying to do the the figures of That over time because there's like 25 years left on the rental mortgage, and we just bought the other house on a 30-year mortgage.
So, I mean, that. That mortgage might outlive us. Yeah. Yeah. I mean, the thing is, those assets you would be pulling from, are they in retirement accounts?
Yeah. Okay.
And they're currently invested and doing well? Yeah. Okay.
Uh yeah, yeah, yeah, yeah.
So, I mean, I think, you know, if you have a real conviction, he does, or you together do, and I would encourage you all to continue to talk and pray about this together as a couple. But if there's a real conviction there to be debt-free, I would say, let's do it and not look back. I mean, if you feel like that's where or he does, and you all together decide that's where the Lord is leading us, we just need to be out of debt as soon as possible. Then I say, go for it. But apart from that, I would say this is a wise use of debt.
This is an appreciating asset. It's not like we're using this for consumer spending. We've got a low cost of funds, so we've got a low interest rate. And the extent to which you all have some surplus cash because he's drawing Social Security, let's say, you've got some retirement assets, you're cash flowing positive on the rental. I kind of like the idea of just accelerating the mortgage payoff, again, focused on that 7% loan and just recognize that, hey, because the rental income is servicing the debt and it's a low cost of funds, and the funds we would use to pay it off are undoubtedly growing faster at a better rate of return.
Than the equal to the savings of the 4% interest rate, which is fairly low, we're comfortable just letting that debt ride. That would be my preference. Again, apart from you all together coming to the conclusion that the Lord's just telling us to get out of debt, and then that changes things. Right.
So so what I think I hear you saying is Hey, the seven percent mortgage like it's a fifteen year mortgage.
Well, that'd be great. Yeah, because I mean, that's an ideal scenario because if something changed in your financial life, which at this point is largely going to be unanticipated expenses that go up, like medically related or something else, you'd have the ability to drop back down to the 30-year payment. But yeah, if you could essentially say, let's amortize this like it's a 15 and just send an additional amount to principal, that would be ideal. It's helping you accelerate your debt payoff, but you're prioritizing a loan that is going to give you a guaranteed 7% risk-free return with every dollar you pay off, and that's better than the four. True.
So I think that's where I'd go with it and just kind of talk through it together and tell them, listen, I appreciate your desire to get out of debt. I share it. Let's just do it in a way that makes sense. And rather than pulling all this money and creating a large taxable event from our retirement accounts, especially since they're growing and doing well, let's let those ride. And what if we just really try to prioritize excess cash flow going to principal reduction?
And your idea of paying it like a 15 is a good one. Great. Thank you. That really helped. That was actually not something I considered before.
Awesome.
Well, listen, I appreciate your call today. If we can help further, let us know and make sure you let him know. I'm not picking sides here. I like his idea of paying off the debt. I'm just throwing out some other scenarios on how we might think about it.
Lord bless you, Melody. Call anytime.
Well, folks, we're just getting started here today. We've got some great questions coming up. We do have a few lines still remaining open.
So if you have a financial question, you want to get in on the conversation, this would be a great time to do it. Call right now, 800-525-7000. You know, our goal in this program each day to be an encouragement to you, to be hopeful and wise, also to be reverent to God's word. We believe stewardship of God's resources is a high calling. We want you to get that right.
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Hey, great to have you with us today. If you'd like to find an advisor, a financial professional, somebody to help you with financial planning or wealth management, But to ensure that they operate from a biblical worldview, they share your values as a Christ follower. They've met significant standards, character, and integrity, and experience, pastor reference, and client reference.
Well, that's the Certified Kingdom Advisor designation. It's the only financial services industry designation that is around and offers financial advisors who can bring a biblical perspective of financial decision making. And you can find a CKA in your area. Just head to findaceka.com. Can't be any easier than that.
Findacka.com. You can put in your zip code and see all the professionals in your area. All right, let's head back to the phones to Mississippi. Hi, Marie. Go ahead.
My question is. I'm a 57-year-old retirer. Didn't want to, but for health reason I had to. I have a six-year-old grandson. And I need some information on where I can invest a little something for his.
Future. You know, that I could invest in. It stays there. It can't be touched until something happens to me or he's a certain age.
Okay, got it. But you am I hearing that you want this not exclusively committed for college? No, just for him.
Okay, got it. So, what you would want to do is, you'd want to stay away from what's called a custodial account. because he would legally gain full unsupervised access to that money the day he turns the age of majority in your state. Usually that's 18. In some cases, it's 21.
But if he's not headed in the right direction, and let's pray that he is, but either financially he doesn't have the maturity or the spiritually, you know, you would not be able to avoid him getting access to the funds.
So, the best way to do that typically is to keep those funds in your name. and just set him aside, maybe in a separate account that you know is earmarked for him, but it gives you full control over the account to make sure that you're transferring the funds at the time and place of your choosing. and and for whatever purpose you want. And at some point, you'll say, I feel like the time is right. He's ready for it.
He's going to use it in a way that's productive. And I'm ready to hand it off, but your hand won't be forced in that.
So that means you would open probably either an individual or if you're married, a joint account in your name or you're in your husband's name. And then just know that those funds, whatever you put in there and whatever you add to it, are set aside for your grandson for the future. And then given his age and the time horizon we're talking here, I'd probably get those invested.
Now, you could do a couple of things. I'll give you two options. One would be open an account at Charles Schwab.
So you go to schwab.com and you're looking for their Schwab intelligent portfolios. And this is what's known as a robo-advisor. It's a very low-cost way to invest. It's going to use indexes, meaning you're just going to capture the broad moves of the market, but it's going to be built in a way that's appropriate for the time horizon of this money.
So as you're setting up the account, they're going to ask a lot of questions. And one of those answers will be, I probably want to use this money in the next 10 to 15 years because I would suspect you would imagine he, you'd be handing this off to him.
Somewhere between 16 and 20 years old. And so that's 10 to 15 years from now. And then the portfolio that's built. through the robo advisor, through the algorithm, is going to be appropriate for that 10 to 15 year time horizon.
So that's option one. Option two is you open that same account at Schwab, but instead of using the Schwab intelligent portfolios, you check out our friends at soundmindinvesting.org. And they have a strategy they call just the basics. It's diversified, it's beginner-friendly, it's very low cost, it's very easy to use. And again, the website is soundmindinvesting.org.
But I think you're on the right track. I love the idea. Thanks for calling. Let's go to Arkansas. We'll round out the broadcast in, let's see.
Yeah, Arkansas. Glenn, go ahead. Rob, how you doing? I'm doing great. Thanks for calling Appreciate your program very much.
Thank you. I have a son who's 26 and he's Looking to purchase his first home, and I'm not sure what his finances are. And I've discussed things with him, and he's Sometimes he doesn't want to listen t to me.
So I'm trying to figure out the best way of approaching uh you know about it uh He's he's um He's had some some of his friends buy homes, and so he I think he feels like he's kind of left out, you know, if he doesn't buy a home. And yes, sir. And uh, I'm just trying to find out the best way I can approach him. And he's kind of a He's kind of hard-hitter, like his father.
Sometimes. I certainly understand that. But he's a great son, you know, and he's. Currently not married, but he does have a girlfriend and he he just has one that one income that he has, which is, you know, he's making money. Uh And I don't really know how much money he has saved for a down payment.
I've tried to tell him, you know, about at least 7, 30%. You know, getting a home inspector and making sure the condition has, you know, because I've purchased a couple of homes and I've been in the. Yeah, when real estate comes in and passes through our business, we have a pest control business where we throw a lot of clearances on houses and things like that. Sure.
Well, let me give you a couple of thoughts. Unfortunately, I'm about to run out of time and I don't want to get cut short here. I certainly appreciate what you're trying to do with your son. I would say the first thing is don't react emotionally. You know, he wants to think long-term, not buying a house just because his buddies are.
And so, he, you know, especially in this environment where home affordability is very challenging, costs are up, interest rates are up. You know, we just don't want him to rush into that because that could really cause him some challenges down the road. Number two, make sure he's financially ready. He needs an emergency fund of three to six months' expenses after closing that's still available. He needs a down payment.
I would aim for 20% plus. You mentioned 30%, that'd be even better, but that's challenging in this environment.
So I would say at least 20% down, no high-interest debt, credit cards at zero, and stable, predictable income. I would encourage him to choose the location over the size as he picks the home. I would have him get pre-approved for the mortgage, and I would want to make sure that that mortgage. In terms of the principal interest taxes and insurance payment, is no more than 25% of his take-home pay.
So he has enough left for everything else. definitely no more than 30% of his take-home pay. Beyond that, I love your idea. Don't skip the inspection. And, you know, I think the bottom line is don't rush this thing.
If he's not ready, it'd be better to wait and save and pay down debt and shore up his financial foundation. Glenn, you sound like a great dad, and I appreciate your call today. If we can help further, don't hesitate to reach out. Lord bless you, sir. Call anytime.
Well, folks, that's going to do it for us. We covered a lot of ground today. I'm so thankful for the opportunity to come alongside you to talk about our role as stewards, to look to God's word, to encourage one another and realize that as we see God as our ultimate and true treasure, well, money changes. It's an entire focus. It becomes a means to an end to accomplish God's purposes.
And that's what we want to encourage you in as we gather together on this program each day. Hey, check out the Faith Fi app. You can download it today and set up your spending plan. FaithFi.com. Just click app on behalf of my team, Jim Henry, Devin Patrick, Robert Youngblood.
I'm Rob. West. This has been Faith and Finance. Come back and join us tomorrow. We'll see you then.
Bye-bye. Faith in Finance is provided by FaithFy and listeners like you.
