Kingdom Advisors equips Christian financial advisors to bring their faith into their practice with the industry-recognized Certified Kingdom Advisor designation. We bring those advisors together with other industry leaders to form a vibrant network. And through that network, we give them the resources, tools, and encouragement they need to serve clients like you, helping you align your values with your financial decisions and investments. To learn more, visit kingdomadvisors.com. What if the most important factor in choosing a financial advisor isn't performance, but alignment?
Hi, I'm Rob West. New research shows that when your financial advice aligns with your values, it doesn't just impact your portfolio, it reshapes how you think about money altogether. Sharon Epps joins us today to unpack what that means for you. 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, we always enjoy our conversations with Sharon Epps. She's president of Kingdom Advisors and a valuable contributor to Faith and Finance. Sharon, great to have you back. Glad to be here, Rob. Sharon, Kingdom Advisors recently partnered with Pingston Research on a study focused on advisors and their clients.
I'd love to begin today by stepping back. Will you give us the big picture? What were we hoping to learn here?
Well, we know that God's ways always work, but we wanted some data to show us the true difference with faith-driven clients and faith-driven advisors. And so, we wanted to compare that to more traditional approaches.
So, we surveyed certified kingdom advisors and other advisors along with their clients to see what they do and what they say they do and make sure that those things lined up. And we found that it was pretty consistent when values line up, the whole financial experience changes. Yeah, that's right. It was so exciting to see what the study revealed about the role shared values play in the advisor-client relationship. Unpack that for us.
Well, that was one of the clearest findings. Trust builds faster when there's a shared belief and purpose. In fact, 70% of CKA clients said that shared values mattered most when choosing an advisor. And the general public, 64%, said returns was what was important. And that alignment creates what we call a trust dividend.
Clients feel understood and not just managed. And the result is stronger, more loyal relationships built on that trust. Yes, it was really exciting to see that clients of CK's are coming for an entirely different reason, the most significant of which is values.
Now some listeners may be wondering, Sharon, does prioritizing values come at the expense of performance? Oh, that's certainly a fair question, but it doesn't play out that way. Values-based investing has been studied quite a bit and it's shown to perform competitively over time. The key is still a wise and disciplined strategy, and alignment doesn't replace good planning, it actually strengthens it.
So, it's not a choice between faith and performance, you can pursue both with confidence.
Now, when someone meets with a certified kingdom advisor, how would you describe what sets that conversation apart?
Well, this is my favorite thing. The conversation goes beyond numbers. CKA advisors are asking about your goals, your family, your sense of calling. In fact, 87% of those CKA clients say that they talk about hopes and dreams compared to only 47% with general advisors. And 85% of CKA clients discuss family relationships versus just 32% with the general advisors.
At the same time, there's really no drop-off in technical excellence. 88% of CKAs address things like taxes and debt compared to 59% of general advisors. It becomes more complete planning, one that connects your financial life with the rest of your life. Yeah, that's whole life planning, and that is a game changer.
Now, let's talk about the impact of all of this. Sharon, as people begin to view money through a stewardship lens, what changes follow over time, according to the research?
Well, there's a shift from ownership to stewardship. People start to see everything they have is entrusted to them by God. In fact, in this study, 63% of the CK clients said they were motivated by a desire to be a faithful steward. And then that often shows up in real action. 47% said they had significantly increased their giving compared to only 23% of general clients.
And as Jesus teaches us in Matthew 6, where your treasure is, your heart will be also.
So when finances line up with faith, it reshapes our priorities in a lasting way. Wow, that is powerful. And it sounds like this relationship between CKA and client is a fundamentally different kind of relationship, one that allows you to line your values up with your financial decisions. Sharon, thanks for shedding some light on all this today. Thank you, Rob.
Always good to be here. That's Sharon Epps, president of Kingdom Advisors. If you'd like to find an advisor who shares your values, go to findacka.com. Just answer a few simple questions, and you'll be connected with CKAs in your area. Again, that website, findacka.com.
Back with your calls after this. Stick around. As the leading advocate for the Christian financial industry, Kingdom Advisors serves the public by promoting the integration of a biblical worldview across every aspect of the financial services industry. And we serve a growing network of thousands of Christian financial professionals, equipping and empowering them to carry biblical financial wisdom to their clients, peers, and community. For more information, visit kingdomadvisors.com.
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Accounts are privately insured up to $250,000. This institution is not federally insured. Uh Great to have you with us today on Faith and Finance. We're taking your phone calls now for the remainder of the program. We've got room for you.
If you have a financial question, call right now, 800-525-7000. That's 800-525-7000. Let's dive in. We're going to begin in North Carolina. Kathy, how can I serve you today?
Well, hi. I am deep in debt. I have $37,000 in credit card debt. Not that I like to shop a lot. I'm 72 years old.
I've been widowed for over 20 years. And I um disable. And the sad part is that I don't have Disability insurance.
So anytime I have been injured or very ill. I've had to just languish about the house and live on credit cards. And I'm having trouble paying off that debt. Yeah. Yeah.
What do you have besides the thirty seven thousand in credit card debt?
Well, on the plus side, I paid cash for my car 20 years ago, and that old Honda is still running great. And I paid, yeah, it is. And I paid cash. For my townhouse, when I moved to North Carolina, using the proceeds from the sale of my former home. But Uh I can't qualify for a HELOC.
Because at this time I am unemployed. I lost my job a year and a half ago. And sincerely, I am bumping into Disability discrimination and age discrimination. I walk with a cane. I walk a little bit.
Slowly, you know. And um I'm trying to give a fair evaluation of the circumstances. Many of these jobs, I think that I am very qualified to work. And I have a good work history.
So, the only thing I can come up with is it must be age discrimination. There have even been times. When I go to a job interview and people will look at me and go, oh, well, why would you want to work at this age? This is the fun time for retirement. Yes, ma'am.
I'm not exactly having fun. Yeah, well, I know this is a heavy weight that you're carrying. And the good news is, God is your provider and we're going to trust him for the provision that you need. I'm glad you haven't gone down the route of a home equity loan because as much as I don't want this credit card balance to continue to grow, we need to get that going the other direction. You know, that can't be the lever that we pull to fund your expenses on a daily basis.
I certainly don't want that going against your home because if you're unable to pay, I mean, there is recourse with unsecured debt like credit cards, but it's not like you losing your townhouse. And so I wouldn't want that to go against your primary residence.
So, you know, obviously the key here is for you. To try to dial spending down as much as possible. Are you bringing Social Security in? Oh, yeah. And it's almost to the penny what I get in Social Security after they deduct.
Part D for the prescriptions or Part B, you know, to pay doctors. After all those d uh uh deductions, I probably have fifty or sixty dollars left over after paying the credit card bills. And that's just not enough. I mean, the HOA dues alone are two thirty five. The water and sewage is on a separate bill from electric.
I could go on and on. When you say reduced spending, the past year and a half, I've been living uh by the grace of God off of food Donated by churches. You know, there really is, in my opinion, no excess spending happening in my life. And the reason I can't get the credit card bills to go down. is because once I make the monthly payment, Any credit that is made available to me, and I'm at the top of the limit on each one of the credit cards, but the credit that is then made available to me, I have to use that.
Yeah. Bills just basically lose. Yeah. Well, I hear you, and I know this is challenging.
So I think we've got to just take it one step at a time here. You know, first is let's make sure you're maximizing government and nonprofit assistance. I'm delighted to hear the body of Christ is rallying around you. That's great. That's the way it should be.
You know, there is food assistance through programs like SNAP, where you could get a monthly benefit for groceries. You know, you even if you own a home, you can still qualify. There's utility assistance from low-income home energy assistance programs. There's even a Medicare savings program that could help as well, and an extra, perhaps even a subsidy for Part D.
So I think you need to look into each of those. You probably want to call 211 just to see if there's any government programs that you're not taking advantage of because they can help you navigate the medical aid, the housing, the utility, and the local food. And so that would be key. I think continue to the extent you're able. You know, the good news is we are still in a pretty solid and robust job market.
Unemployment is very low. I realize you've got some things working against you, but let's just trust the Lord that He's got something in mind. Maybe it's something you're able to do from your home. You know, more work remote options exist now than ever post-COVID. And so perhaps there's an option there that would allow you to stay right at home and bring in some more income.
I also want you to reach out to our friends in addition to 211 for the government assistance. Reach out to our friends at Christian Credit Counselors. Let's see if they can help you get that monthly payment down. But more important than that, get those interest rates down on those credit cards so we could get that actually going somewhere so that you're not just basically covering the interest every month and treading water. We're actually making progress on those credit cards.
And if we can get some income going, get some more assistance to take some of the pressure off, some of the spending, and then get those interest rates dropped on the credit card. Cards with our friends at Christian Credit Counselors. Let's just see if we can't get this moving in the right direction. The number to call is 800-557-1985. That's Christian Credit Counselors, 800-557-1985.
Kathy, I'm going to ask the Faith and Finance community to be praying for you. I'll certainly do that and keep us posted along the way. Thanks for your call today. To Virginia, we go. Hi, Vicki.
How can I help? Hi, thank you for taking my call. We have a HELOC, and it matures about two years after our mortgage will be paid off. And we had to recently use it and the people at the bank said, best case scenario is to always hold on open a HELOC at least after you pay off your house. And that will be a red flag in case someone tries to use your house or get a loan off of your house in a fraudulent situation.
Would you recommend that? Or do you agree with that? Or is it just the bank trying to make us spend more money? Yeah. You know, I wouldn't leave a HELOC open for that reason.
I mean, if you're concerned about a fraudulent title transfer, which we're hearing more about lately, just because there's companies that offer, quote, title lock insurance, even though it's a misnomer, there is no such thing as insurance against fraud. And so what I would say is if you're concerned about that, I'd call your county records office and see if you can put an alert on your title that would allow them to notify you if there was any changes or any request for changes. But with regard to that HELOC, if it's paid off and you're not planning on using it, I don't see any reason to keep that open. It's probably just sitting there as an enticement for you all to spend money, which I wouldn't want you to do. Unless you'd really thought through it and prayed through how you're going to use it.
So I would say if you're ready to close that down because you don't have a use for it, I would do it without looking back. And I certainly wouldn't leave it open just because it will, you know, prevent somebody from trying to steal your title.
Okay, okay. Thank you so much. All right, Vicki, thanks for your call today. Hey, we're going to take a quick break and then be back with much more. Stick around.
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We're taking your calls at 800-525-7000. Let's go to Fort Lauderdale. Hi, Marie. Go ahead. Yes, hi.
How are you today? I'm doing great. Thanks for your call. Yes.
So my daughter is thirty six, and she wants to know should she keep one thousand dollars in her emergency fund? Or should she save three to nine months of emergency fund income? Yeah, it's a good question. I love that she's thinking about an emergency fund because it really is one of the building blocks to a sound financial plan. You know, I would say as the starting point, you know, $1,000 is a great beginning point.
I wouldn't end there unless she has credit card debt where she's carrying a balance.
Now, if she's charging some bills on a credit card that are budgeted items and then she's paying them off at the end of the month, that's not what I'm talking about. I'm talking about where she's carrying a balance that she can't pay off. And she's paying high interest rates, there'd be no reason to leave a lot of money in savings. Because you know, when you're paying 20 or 23 percent in interest, I'd rather her pay that off.
So, if she's got any high interest consumer debt, I'd stop at $1,000 and focus all of her surplus on getting out of debt. But if she doesn't have that, then absolutely I'd continue going up from $1,000 until she gets to that three to six months worth of expenses. As a 30-year-old, 36-year-old, she probably doesn't need more than six months worth of expenses. At that point, I'd be focused on is there additional giving opportunities or does she want to bump up what she's putting into a retirement account? Because she's got a great opportunity for the next 30 years to see that money compound and grow in an IRA or a 401k.
And she probably wants to try to get up to 10 to 15% going into a retirement plan. And that would be perhaps the next thing after a fully funded emergency fund. Does that make sense? Yes, a lot of sense. Thank you so much.
All right. Hey, let's do this. I want to send you a book. Howard Dayton has written the classic book, Your Money Counts, that I think will be helpful to her. It's kind of a primer on biblical money management that's very practical but rooted in scripture.
We'll send it to you. You pass it along to her as a gift from us. Hang on the line, Marie. We'll get your information and get you your money counts in the mail, just as a way to say thanks for calling today. Let's go to Missouri.
Guy, go ahead. Um Calling about Getting pre-needed. uh things in place. for me and my wife to have for our children later. Um I've been exploring through a local funeral home.
Their pre-needs, and it sounds like they're based into an insurance product. Do you suggest that? Or do you suggest Just socking that money away somewhere in a invest you know, a high market. Savings or whatever, yeah, to just set aside, you know, for our kids to have when the time gets here. Yeah, I like that second option.
I think it's a practical middle ground guy, where instead of fully prepaying, you pre-plan the service details.
So, you, you know, any preferences or choices you have, those are written down. You set aside funds in a simple savings account or a POD account payable on death account.
So, it you know is readily available to whoever would be, you know, making those decisions and paying for any expenses related to the funeral. Uh, you would name a trusted person to carry out that plan so it gives clarity for the family, flexibility for you, and access to the cash if needs change. Because, you know, the only downside of prepaying is you lose some flexibility. It may be hard or costly to change if you decided you wanted to. If you move to a different city or state, that complicates it.
It ties up the cash, and there's provider risk, you know. If a funeral home closes or changes ownership, that can be messy, and that does happen. Periodically.
So it's not always the best financial move. And so I feel like that kind of covers both sides, keeps you flexible and access to the cash, but it takes the pressure off your family, which is what you're most concerned about in what would already be a difficult situation.
So since we have an irrevocable trust set up with our Son is the executor. that would take the place of actually naming who would carry out the plans, is that right? Yeah, that is right. I mean, you know, the irrevocable trust has Nahim named as the successor trustee, but that really is with regard to the assets inside the trust.
So you would just want to make sure that you've, you know, made it known to him that he's the one to carry it out. And then, separate from the trust, make sure that you give him those instructions and he understands what your wishes are. But yeah, he would be the likely person.
Okay, very good, appreciate it. All right. God bless you, guy. Thanks for being on the program today. Let's head to Texas.
Norma, how can I help you? Yes, thank you for taking my call. Of course. I bought a house back in 2003, paid $129,000 for it. lived in it until two thousand six, rented it out in two thousand eight until twenty twenty two when I moved back into it.
So I lived there for almost three years, and then I sold it this past June for $250,000. I'm wondering if I'm going to have to pay income tax on that Roughly $130,000 that I've made or $120,000 that I made profit on it. Yeah. It's a good question, Norma. And you definitely wouldn't pay any income tax.
If you had tax, you'd have to pay. It would be capital gains tax on the profit. But it doesn't sound like, based on your description, you'll have that either. And the reason is you will likely qualify for the home sale exclusion because as long as you lived in that home as your primary residence from the date of sale, going backwards, as long as you live there as your primary residence two out of the last five years, and it doesn't have to be consecutive, then you qualify for the home sale exclusion, which will give you, as a single filer, up to $250,000 in gain, not the selling price, up to $250,000 in gain that would be tax-free.
Okay, all right.
Well, I appreciate your input then. I'm 81 years old and on a Social Security only income other than what I made on the house.
So I was just wondering if I would have to pay. A lot of income tax on that. But I appreciate your help. Yeah, you should be in great shape. You can take 100% of that and put that into your savings and get that working for you.
By the way, our friends at Christian Community Credit Union have a wonderful option right now for FaithFi listeners. They're paying 4% on their money market. It's the largest and oldest Christian credit union in the country, which a lot of listeners are taking advantage of. And if you use the keyword FaithFi, they'll put up to $400 in your account when you open it.
So a lot of folks are taking advantage of that. FaithFi.com/slash banking. But Norma, well done. It sounds like you're in great shape here and you shouldn't have any taxes. I would work with a CPA.
If you normally file your own taxes, this is probably the year to do it because you just want to make sure you document that correctly on the fact that you qualify for that home sale exclusion. Lord bless you, Norma. Thanks for being on the program today. Well, that's going to do it for us. Really appreciate you being along with us today.
I hope you found something helpful. Hopeful and encouraging. Here's our heart and our goal to help you live as a faithful steward so you can hear well done, good and faithful servant. Big thanks to my team today: Devin, Taylor, Patty, and everybody here at FaithFi. Hey, check out the new FaithFi app at faithby.com/slash app, and then come back and join us tomorrow.
We'll be here to do it all over again. Until then, may God bless you. Bye-bye. Faith in Finance is provided by Faith Buy and listeners like you.
