Have you ever stopped to ask yourself this question, how much money is enough? Most of us never really define it. And when enough is unclear, it quietly becomes a moving target, shaping our decisions, fueling anxiety, and keeping us chasing more without ever finding rest. At FaithPhi, we believe God offers a better way. That's why we created our very first FaithPhi field guide, How Much Money is Enough?
an interactive scripture-centered resource designed to help believers explore this question through biblical wisdom, guided reflection, and real-life application. When you support our ministry by becoming a FaithFi partner, before May 31st, you'll receive this field guide as our way of saying thank you. Your gift of $35 a month or $400 a year helps equip believers to manage God's money God's way and find freedom rooted in contentment, not comparison. To become a partner today, visit faithfy.com/slash give. That's faithfy.com/slash give.
Mm-hmm. How much is enough? And why does it always seem just out of reach? Hi, I'm Rob West. We often think the answer is a number, a financial target that will finally bring peace.
But what if enough isn't something you reach, but something you define? Today we'll explore how Scripture reframes that question and why it matters for your contentment, your decisions, and your generosity. 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 journey.
When we turn to Scripture, we see that the question of enough doesn't begin with math, it begins with the heart. As we always say on this show, money issues are heart issues. They're tied to our fears, our desire for control, and ultimately, where we place our trust. That's why the writer of Hebrews tells us in Hebrews 13.5, Keep your life free from the love of money, and be content with what you have, for he has said, I will never leave you nor forsake you. Notice the connection.
Contentment isn't rooted in what we have, but in who we have.
So, if enough isn't about accumulation, what is it about?
Well, first, it's about trust. Physician Keelan Hobelman and his wife recognized this early. As his income began to increase, they knew they needed a way to tap the brakes on their lifestyle. You go into practice as a physician and your income can go up three, four, five times overnight. And so we were looking at all these potential jumps in the future, the first being me becoming a resident and actually having an income.
and wanted to find some way to protect ourselves from that lifestyle bump. We wanted to find some kind of a Limit or benchmark that could keep us on track so that as we went through these different stages of life, our lifestyle didn't just expand to fill up whatever there was to fill. Yeah. That leads to the second truth. Enough is about stewardship.
If God owns it all, then we're not owners. We're managers. And managers don't ask, how much can I keep? They ask, how does the owner want this used? And that changes everything, because now enough isn't about protecting your lifestyle.
It's about aligning your life with God's purposes. And here's the third truth. Enough is about contentment. In 1 Timothy 6, 6, and 7, Paul writes, Godliness with contentment is great gain, for we brought nothing into the world and we cannot take anything out of the world. That's a powerful reminder.
If we came in with nothing and leave with nothing, then enough can't be defined by what we accumulate along the way. It has to be defined by something deeper. And this is where it gets practical. If you never define enough, your lifestyle will slowly expand to consume everything you earn. But when you define it, you create margin, margin for generosity, margin for kingdom impact.
One simple way to do that is by setting a financial finish line, a level of spending you choose not to exceed even if your income grows. It's not about limiting your joy, it's about protecting it. Once that line is defined, everything beyond it has a purpose. Helen Schmidt, founder of My Strategy Mentor, experienced that shift first hand when her family made a decision that reduced their income but increased their dependence on God.
So our absolute dollars in gimming went down. We actually felt like God just continued to show up pretty radically when we decided to trust in Him and make some decisions that felt like, oh, this doesn't look right to the world. It looks like we're taking steps back, but we know we're glorifying Him and we know we're seeking His kingdom first. And it is so countercultural, but we feel like we're finally understanding this generosity mindset, which is this is all His. and we can take risks.
That's the shift. Enough stops being about what you need to feel secure and starts becoming a tool for how you live on mission. Instead of asking, how much more do I need? You begin asking, what has God already entrusted to me and how can I use it for his purposes? That's not restriction, that's freedom.
And that's really the heart behind our brand new Faith Phi field guide, How Much Money is Enough. It's designed to help you prayerfully walk through this question, not just in theory, but in your everyday life. With the technical expertise of trusted financial advisors and the biblical insight of theologians, this guide will help you align your finances with God's purposes so your money becomes a tool for impact, not just accumulation. We would love to send you a copy when you support this ministry by becoming a Faith Phi partner by May 31st at $35 a month or $400 a year. Just visit faithfi.com/slash partner.
That's faithfi.com/slash partner. Back with your questions after this. 800-525-7000. Stick around. FaithFi is grateful for support from One Ascent.
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Text the word faith to 98-7500. or visit faithfy.com slash Lebanon. Great to have you with us today on Faith and Finance. I'm Rob West. We're taking your calls and questions today.
That number 800-525-7000. That's 800-525-7000. We'd love to hear from you today. We do have some lines open. Our team is ready to take your call.
All right, we'll head to Indianapolis. Rusty, go ahead. Yes, sir. I was curious to know your opinion Would it be mathematically advantageous for one to take Social Security at sixty two? invested and draw from their IRA.
during that period of time from 62 to 65 or 7. until Social Security comes to full maturity? Or would it be better to wait till sixty five or sixty seven based on what your return on your investment from your IRA is? Yeah. You know, in many cases, waiting to take Social Security wins.
Because benefits grow at about eight percent per year, and that's guaranteed it's a risk-free increase.
So it's hard to beat that consistently with investing. There is nothing that's risk-free that offers that kind of guaranteed return.
Now, the idea of take it at 62 and invest it is you take it early, you're pulling from the IRA instead. And the way for that to win, you would need to have consistent returns higher than about 7% after tax. And you'd have to do that over many years without major losses early on. That's possible, but not guaranteed. But often, what drives this decision at the end of the day, Rusty, is not just math.
It's life expectancy, which is the biggest factor. We don't know, only the Lord knows. But are you healthy? Do you have longevity in your family? What is your need for income now?
And then looking at the IRA strategy, pulling down IRA money reduces future RMDs and creates tax planning opportunities. But I think at the end of the day, if you've got longevity, you're healthy, you don't need the income now, if you have the ability to wait, that's usually going to win out. But give me your thoughts or questions. Yes, I certainly appreciate your input there. And just kind of where my head was is that you had a diversified portfolio in the million dollar range and you were able to pull money out and you needed minimal money to live, and you're talking one hundred thousand dollars from sixty two thousand to sixty five and not having that magic of compound interest from the rest of the portfolio, which was the better investment.
And it sounds like that the waiting for the guaranteed money, in your opinion, is the better way to go than to have the risk. Yeah, exactly, because if you've got the million dollars and you don't need the income, Social Security becomes longevity insurance and a guaranteed return.
So, you know, the reasons why you might still want to wait, which is again often the better move, is you're essentially buying a bigger guaranteed check.
So delaying it. You know, get you that 8% increase risk-free. It's inflation-adjusted, meaning those cost of living adjustments are gonna be on that higher amount and it lasts for life. And it's hard to replicate that safety in the market.
So you're protecting against living a really long time. Whereas your portfolio is exposed to market risk and what's called sequence risk, which is the kind of how the returns parse out over the sequence of your retirement years. Whereas Social Security provides that guaranteed floor. The other issue is what's better for the spouse, and that if you're married, that higher benefit continues for the surviving spouse, which is a big deal in planning.
So I would say the reason why you might want to take it early in a situation like yours is if you want to draw down the IRAs early as a tax strategy, that might be the strongest argument for it. Or if you have health concerns or a family history with a shorter life expectancy, or you just value liquidity and flexibility and you prefer having that cash flow earlier. But I think where some people get it wrong is they think, well, I'll take it early and invest it. But I think the key question or comparison is delaying with the guaranteed 8% increase versus taking it early, investing it, and then you have market risk and taxes. Does that make sense?
Praise the Lord. I've got about seven years just starting the planning process now, and I certainly appreciate the sound advice. Absolutely, Rusty. Lord bless you, my friend. Thanks for calling.
Let's go down to Florida. Lori, go ahead. Yes, thank you so much for taking my call. I am a social worker in Florida, and I have a Florida license, and I'm certified down here in Florida. end of January, I just bought a home in South Carolina.
And right now Florida is my primary home. I'm trying to figure out if it's better for me to go ahead and deal with the Higher property price for the secondary home in Carolina until I'm able to transition over totally and be done with Florida. Right now, I'm using that money. I do get a retirement, Florida retirement, which is a little less than three thousand and so I can live off of that once I retire because I'm not at retirement age I'm I'm not sixty yet And, uh but I can live off of that. It's just me.
But I do have this other job with this this job I've been here in Florida with. And I can't work this job unless I have a Florida license because I have to drive. And If I move uh over to if I make Carolina my primary home, then I have to get switch the license over And then I won't be able to work in Florida. And I'm just trying to use the income here. to purchase things that I want there, like I want a couple of sheds.
You know, some different things I want done there, the property. I got 2.7 acres I want to lay down some trees. and do some things like that.
So um the house is paid for. But I do have one outstanding loan of $130,000, a little bit over $130,000, that once I sell the home in Florida, I can just pay that off anyway.
So I don't know really what to do. Right now, Florida is my primary home. And I know that the price goes up. If you have the ho a secondary home that's not your primary, they they charge you six percent or something. Instead of four percent.
On taxes. Yeah. So are you talking about on the sale, the capital gain that you'll pay? Uh, the property tax. Yeah, but what would I be yeah, property tax for the s home that's not primary?
Okay. Yeah, I don't know what to do here in this situation, really. I'm just kind of working and staying in Florida, but I'm going back and forth. But that home in Carolina that I just bought it in in January, I that's my sec that's my secondary, but they said I wanted to be my primary, I got to get my license changed over, I got to do everything. to make that my prime and then I won't have to pay the higher price for the taxes.
Yeah. Well, it sounds like, I mean, at this point, if I'm understanding correctly, you having a home base in Florida is pretty critical to your overall plan in terms of what you're trying to do between now and when you ultimately relocate to North Carolina, where you now have one residence, you're debt-free, and you're living off of your retirement. But it sounds like you want to make some capital investments. in the North Carolina property and your ability to continue to work in Florida is essential to making that happen. And so if there's a premium associated with your property taxes or insurance in North Carolina, it sounds like that's a pretty good trade-off, just given that everything is so dependent on you staying in Florida and continuing to work at least for a period of time.
Is that right? Yes, right. That's right.
Okay. So it doesn't sound like, you know, it's an either or. I think it's certainly, if I'm understanding everything correctly, yes, there's a premium you're paying, but we know why you're paying it. And there's a very good reason for that. And eventually this will all kind of get you into a place where you're going to be in a much better shape.
You're going to have your property built out. You'll be debt-free. You'll have a good solid income and you should be in good shape. Stay on the line. We'll talk a bit more off the air.
We'll be right back. What happens when we never define enough? It becomes a moving target, always pushing us toward more. For a limited time, when you become a FaithPhy partner, you'll receive our first ever FaithPhy field guide: How Much Money is Enough. Your gift of $35 a month or $400 a year helps equip believers to manage God's money God's way.
Become a FaithFi partner by May 31st to receive your field guide. Visit faithfi.com slash give. Feeling burdened by credit card debt? As faithful stewards, we are called to manage our finances wisely. Christian credit counselors can help with a debt management program that allows you to pay off debt up to 80% faster while honoring your commitments with integrity.
Don't let debt hold you back from the life God has planned for you. Take the first step toward peace and financial freedom today. Visit faithfy.com slash CCC or call 800-557-1985. Thanks for joining us today on Faith and Finance. Taking your calls and questions today at 800-525-7,000.
That's 800-525-7,000. All right, to Texas, Minerva, go ahead. Hi. My question is, I am on disability with Social Security, and I'm going to sell my home. And so when I sell my home and I buy a new home, will that affect my Disability?
Yeah, it's a great question.
So you're selling the house. What kind of are you on SSDI? I don't know. It's a disability. It's a disability.
I just know that.
Social Security disability. And I barely spot on it.
Okay, got it. Yeah. And so, you know, the good news is when you sell this house, and I assume this has been your primary residence, is that right? Yes, sir. That is correct.
Okay. Okay. Yeah. So the good news is that, you know, you shouldn't owe any tax on it because, you know, this is not taxable as income. And if it was your primary residence for two out of the last five years, you're not going to have any capital gains so long as your gain, not the selling price, but your gain is less than $250,000.
Now, in terms of your SSDI, there will be no impact. SSDI, Social Security Disability, is not means tested.
So, a home sale proceeds do not reduce benefits in any way. And the same would be true with Social Security as well. If you're on SSI, which I didn't hear you say that, supplemental security income, that is means tested. But if it's Social Security disability, that will have no impact on it whatsoever.
Okay, and then you said as long as it's not more than because my home is on this on acreage and I uh the home is not com finished and I invested into it myself. And I I think it's going to be a lot more than what I invested. You made what I put into it to make the ho the house. It's not even finished yet. I I live semirural and it's a long story.
But anyways, so if I make how much Um more than two hundred thousand, then it will be taxed. Yeah, are you talking about what you're going to do with the money? Are you talking about the place you're selling? The place that I'm selling. I live on 33 acres and I have a home that I've never.
Finished, and I want to just sell the property so that I can buy a regular home that's already finished.
So, what did you pay for it initially? I think I put nothing. I mean, is originally the the land was like seventy five thousand and I put let's say twenty five, thirty thousand into it.
Okay, and what are you selling it for? Uh I'll make, God willing, about 600. About 600,000. Yeah. Okay.
Yeah. This is something you're going to need to look at. You're going to need to get with a CPA on this. Are you married filing jointly or filing single? A single.
Okay. Yeah. So you have up to 250,000, but here's how the IRS looks at the acreage. What's normally covered is the house itself. And I realize that's a little challenging because you've been working on it, but it's not quite there yet.
And so that's going to play into this. But they normally look at the house and then about up to an acre of land surrounding it. for residential purposes.
So anything beyond that, the excess acreage beyond what's typical for a residence would probably be excluded and be seen as an investment. Um, and so that would be excluded from that 250,000 that you have as far as gain goes.
So, I suspect anything above that and perhaps even a little bit more, essentially, if we were to walk through this, we start with the raw gain.
Okay, so if you're selling this property for around 600,000, let's just say for round numbers, because I know you basically put very little into it, let's say you put 50,000 into it, so your gain in my example is 550,000. Then, as a single filer, you get up to 250,000 worth of an exclusion if you've lived there two out of the last five years as your primary residence. But the 33 acres means not all of the property qualifies as your home.
So with that much land, the IRS almost always requires the sale to be split. The residence portion, which would be the house plus the reasonable surrounding land that's eligible for the $250,000. And then the excess acreage is fully taxable. Um, and so, you know, a realistic allocation might be: you know, let's say the residence portion is 350,000 and the excess land is 250,000. Then you'd allocate your basis accordingly.
So you'd take, you know, your 50,000 basis and you'd apply some part of it to the residents. If it was mainly for, you know, construction and improvements and not buying the property, then you could allocate the majority of it to the home. And so let's say you put all 50,000 there. And in my example, if the portion allocated to the home was 350,000 out of the 600, then you'd have a gain of 300,000. And you could set aside 250 of that.
And then the rest would be taxable as a long-term capital gain. And the full amount of the portion that was considered just excess acreage would be fully long-term. Term capital gain as well. Does that make sense? Yes, sir.
Thank you. Absolutely. And in terms of the amount of that, it's either going to be 15 or 20%. And that's going to have to do with what your total gain is plus your other taxable income. But it doesn't sound like you have a whole lot of income, right?
No, nothing at all.
Okay. Yeah. So, you know, if we just look at the straight long-term capital gains rates, you know, filing single status, you would have up to $545,000 in taxable income that includes the gain itself, which again, we're going to have to calculate out of the $600,000 to figure out how much of that is gain and how much can be offset by the home exclusion. But it sounds like when you put it all together, you're still going to be in the 15% rate.
So whatever your CPA determines is actually a long-term capital gain, multiply that by 15%, and that's how much you'd have to send to the IRS.
Okay, perfect. And then I don't have to send it to SSI. I send it to. Zyrus. Yeah, when you file your taxes, that's when you'll pay the capital gain.
And again, because SSDI, if that's what you're on, Social Security Disability, is not means tested, it should have no bearing on that. You've got it.
Okay, thank you so much. I love it.
Okay. Program. Thank you. God forbid.
Well, thank you. And Lord bless you as well. Thanks for being on the program today.
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 its 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 Buy app. You can download it today and set up your spending plan. FaithBuy.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. We'll see you next time. Bye-bye. Faith in Finance is provided by Faith By and listeners like you.
