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If so, please consider becoming a monthly FaithPhi partner by visiting FaithPhi.com and clicking Give. That's faithfi.com and click Give. What if giving isn't losing at all, but investing in what lasts forever? I am Rob West. Jesus tells us to store up treasures in heaven, and that changes the way we think about money, possessions, and generosity.
Today, Randy Alcorn joins us to explain why wealth can be dangerous when it owns us, but deeply life-giving when it's surrendered to God. And then it's onto your calls at 800-525-7000. That's 800-525-7,000. This is Faith in Finance, biblical wisdom for your financial decisions.
Well, it's always a joy to have my friend Randy Alcorn with us. He's a best-selling author, the founder, and director of Eternal Perspective Ministries, and one of the most trusted voices helping Christians think biblically about money, possessions, generosity, and eternity. Randy, great to have you back. Hey, it's always good to be with you, Rob. Randy, at our recent Kingdom Advisors Conference, you spoke about both the life-taking dangers and the life-giving potential of wealth, which is such an important tension for God's people to understand.
So let's begin there. Why does money have such a powerful influence on our spiritual lives?
Well, money really reveals what's in our hearts. Where our treasures are, our hearts are going to be, and how we handle the money that God has entrusted to us shows us what we truly value. It's kind of an exact index to our character. It points out who or what we trust and prioritize. And money isn't neutral.
It's a power. It's going to either serve God or we're going to serve it, and it's going to get in the way of our walk with God.
So there's real spiritual warfare surrounding money just because of the power and influence. it has in our lives. I think that's well said. And that's where we begin to see the danger, don't we? Scripture gives us some very sobering warnings about the love of money, right?
Absolutely. Scripture's full of those warnings. I was just looking in 1 Timothy 6, where it's got the passages back in, oh, in verse 6, 7, all that, where it talks about those who desire to be rich fall into temptation, into a trap, into senseless and harmless desires that plunge people into ruin and destruction. The love of money is the root of all kinds of evil. And then also, many have wandered from the faith and pierced themselves with many pangs.
And that's like, does anyone want that? Nobody writes that. No, not at all.
So we have to be on our guard there. And what becomes really clear, Randy, is that money, a good gift from a good God that can be used to serve and love people and to be in. Enjoyed and to provide can all of a sudden become something that quickly competes with our affections for God, right? Yeah, absolutely.
So we just have to be really careful there. And left unchecked, it will pull us away from dependence on Him. But that's, of course, not the whole story. You remind us that wealth, when surrendered to God, Randy, can be used in deeply meaningful, even eternal ways, right? Absolutely.
And that's where we look at it. And instead of giving up, like money is this evil thing that is always going to just cause problems. It is going to be a source of temptation. It's going to be a challenge. We should not take it lightly, but it can be a powerful tool when it's surrendered to God.
It can advance the gospel. It can meet deep personal needs around the world. Think of the people being delivered from sex trafficking. Think of children who are now being able to drink clean water. Think of the Bible being translated into all of these languages where people are hearing the word of God for the first time.
All of these things involve money. And yes, God is the key to it, not money, but money is something God uses for his glory in the world. And that money is going to have to come through his people. We need to surrender it to him and ask him, okay, Lord, this all belongs to you.
Now, what do you want me to do with it that will make a difference for eternity? Yeah, and that's where we're going to pick up after the break because one of the books of many that you've written is on the treasure principle. We'll unpack what that says about our giving. We'll also talk about how our generosity can lead to incredible joy in our own lives in addition to blessing and loving others. Randy Alcorn here today.
He's helping us think biblically about the role of money in our lives. And we'll be back with much more right after this break. Stick around. 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 we can just amass more and more and more. We're figuring out how much do you really need? What are your priorities? What has God called you to?
And then how can we give it away? How can we be more generous? You can find an advisor like Bethany at findaca.com. Uh 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. Wealth is both a tool and a test. And when we surrender it to God, money loses its grip on our hearts and becomes an opportunity to participate in God's redemptive work. That's what we're talking about today with Randy Alcorn, the life-giving potential of wealth.
Randy is, of course, a best-selling author, the founder and director of Eternal Perspective Ministries, and a good friend and regular contributor here at Faith and Finance. And Randy, we were talking about both the life-giving ways that money can be a blessing to others when it flows through us and doesn't stop and get stored with us, but how it can also be dangerous when it competes with our affections for God, who should be our ultimate treasure. I want to talk a bit more about some of the ideas you've shared around giving. That really giving isn't losing, it's actually something far better. Jesus tells us in Matthew 6 to store up for yourselves treasures in heaven.
Is that what you mean when you say giving is really investing? Absolutely, because we're storing up. That's what, you know, if you buy up shares in a company, you have now a special interest in that company. You follow them, you read the reports, you see an article or a news program about them, and you're interested in them. That's how it works in the kingdom of God.
We put our money in the things of God, and then our heart follows it. Our heart follows our treasure. And so, if we want our treasure to be in a different place, in a better place, you know, we put our money there and our heart's going to follow.
So, we can then, when we consider what we can do for people all over the world, it's just this amazing thing and what we can do for our local church. There's people that say, hey, I wish I had more of a heart for my church. And go, well, there's Jesus told us how you can have more of a heart for your church. Give more to your church. How can you have a heart for homeless people?
Go out there, give your resources, including your resources.
Source of time to help the homeless and do these things, and your life will be transformed. Everyone comes out ahead when we give. The people we give to. God is glorified. The only person that doesn't count him out ahead in the whole thing is the devil.
Yeah, that's exactly right. You know, and this really reframes the way we think about generosity. In Acts 20, of course, Paul reminds the Ephesian elders of Jesus' words: it's more blessed to give than to receive. I'd love for you to unpack that a bit more. Is that saying that giving actually reshapes our hearts so we can experience that blessing?
Yes, it does. And the thing is, that Greek word makarios there that's translated blessed in most translations actually means happy making. And some translations do render it that way. And I wish more did, because that is the actual meaning of it. And that's that verse that is the only verse that Jesus speaks in the book of Acts that's nowhere in the gospels.
It's almost like Luke, the author of the Gospel and of Acts, saved it for the book of Acts, and here it is. And it's more happy making to give than to receive. And you think about Scrooge, you know, so around Christmas time, everybody's watching one of the probably 50 versions of that, you know, that movie and that story, the Christmas Carol. And it's just like, it's so powerful because he is so miserable. I mean, Miser.
Are miserable.
Okay. And so that's the word connection there. But then when he goes through that night, which is basically like a conversion story, when he sees himself as he really is and essentially repents, now he is giddy with happiness, going through the streets, giving things away, giving the huge, you know, turkey to the Cratchit family and all these things. And now it's not simply that he's doing good stuff and checking off the boxes and he's become a good person now. It's that he's full of joy.
Yes.
Well, our mutual friend Todd Harper says, I've never met an unhappy, generous person. I think that gets to this idea. I love this. It is more happy-making to give than to receive. Let's take that a step further because that connects to something every believer longs for, Randy, and that is real joy.
What does scripture show us about the relationship between generosity and joy?
Well, we're told God loves a cheerful giver, Giving really does produce joy, happiness in our lives, and it's very contagious. It aligns us with God's character and his own generosity. The word grace that is so important to us is it means giving. What is the grace of God? The grace of God is the giving of God and the givingness of his heart.
And it helps us experience what scripture calls in 1 Timothy 6, the life that is truly life. And what that's talking about is that there is a life that, you know, like people will talk about the good life. Oh, yeah, I'm living the good life. And what do they mean? That they're spending a lot of money and they're chasing their dreams and all kinds of different forms.
And a lot of the people who say they're living the good life are actually miserable. But God actually does want us to live the good life. But the good life is the life of generosity. Giving is the good life. And then that's what replaces our anxiety about money with purpose and freedom.
And we see God at work through what we give, and we are just happier people and far more pleasant to be around. It almost sounds like that should be the title of a book, Randy, Giving is the Good Life. That's one of Randy's books. Pick it up, folks. You will love it.
Randy, you also talk about the importance of defining enough. And setting a kind of a financial finish line. We talk about that often on this program. Why is that such an important step for faithful stewardship?
Well, because we get this from the world, but we just have this idea that when money comes our way, God's intention is for us to find something to spend it on. And it's like, why don't we get the fact that we already, most of us, have more than we need? A lot of us could do well with getting rid of some of what we have, but... We surely don't need to keep accumulating more. I used to take our daughters when they were young, would take them to a junkyard and would say, look, see all this stuff that people fight over and these were Christmas presents and now they're just scattered all over the place.
Doesn't mean that something's bad just because it wears out, but it does mean if that's where you put your hope and that's where you put your happiness, it's just not going to last.
So, what we need to do is to give in order to break the hold that money has on our hearts and have a margin for intentional, kingdom-focused giving. And the more we do that, the more we get captivated by it. It becomes a holy habit and really is transformative. Boy, that is so true. Folks, as Randy said, wealth is both a tool and a test.
And when we surrender it to God, money loses its grip on our hearts and becomes an opportunity to participate in God's redemptive work. Randy, so thankful for you, my friend. Thanks for stopping by today. Great to be with you. Folks, that's Randy Alcorn, the best-selling author.
By the way, other than the Bible, there is no book that had a more profound impact on my view of wealth. And God's word, then money, possessions, and eternity. Randy's classic. Pick it up wherever you buy books. And if you want an advisor that can help you think about giving in your financial plan, go to findacka.com.
Back with your questions after this. Stick around. Are you a financial professional looking to grow your practice while offering advice that aligns with your Christian values? By becoming a Certified Kingdom Advisor, you'll gain the biblical wisdom and professional credibility to serve clients who are seeking faith-based financial guidance. Each year, more than 75,000 people search for a certified kingdom advisor.
Join our community and share your expertise with clients looking for someone who shares their faith and values. Start your journey today by going to kingdomadvisors.com/slash get certified. FaithFi is grateful for support from One Ascent. OneAcent believes that your values inspire why you invest and how they can inspire how you invest. One Ascent'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 onacent.com and by clicking analyze my investments.
Well, each day on this program, we gather together to hopefully bring some hope and encouragement to you as you manage God's resources. Listen, we think this is a really high calling, and that's why we do this program every day, because money is a good gift from a good God. He's the author of delight and joy, and we're to use this to bring him glory. We can enjoy it. That's clear in God's word.
We provide with it, we give it away, we invest it all for God's glory, keeping eternity in view, not the things of this world, knowing God is our provider. We are stewards or managers of what he's entrusted to us, and we want to be found faithful. And we can do that together when we look to God's word and the principles we see in scripture.
So, that's our hope every day: to be able to direct you back to the truth we find in the scriptures and encourage you toward faithfulness as you manage God's resources. Every line is full here today with great questions. Let's go to New Hampshire. Denise, how can I help? Mm-hmm.
Hi there, how are you doing today? I'm great. Thank you. I hope you are as well. Yeah, I am.
I have a question about a reverse mortgage. On a manufactured home on leased land. And I was wondering if that was something that would qualify. Unfortunately, the answer is likely no, that it would not qualify. And here's the key issue: the leased land.
When you have a manufactured home, you typically own the home but lease the land, and that's the problem, is most reverse mortgage programs. like the FHA insured Heckams, Home Equity Conversion Mortgages, which are the only ones I would recommend, require that the home be real property, not just personal property, and the land ownership has to be included. And if that's not the case, you're typically not going to be allowed to do that. Yeah. I'm in a fifty-five plus community.
Um we have a a basement But all of the land Yeah. Is belongs to the owner of There's ninety one homes and yeah, we don't own the land. Yeah, unfortunately, I think that's going to put a stop to that option.
So, what could you do?
Well, you could sell the home in downsize. You know, you could consider a home equity loan, although I'd be really careful about that, depending on what you're using it for. But unfortunately, I don't think the home equity conversion mortgage, the type of reverse mortgage that's FHA insured, which is what I would want you to do if it made sense for you, is probably not going to be an option with you not owning that land.
So, I wish I had better news, Denise. Thanks for calling today. Let's go to Pennsylvania. Mary, how can I help you? Yes, a friend of mine gave me your information.
She listens to you in Illinois all the time. And what my question is, is if you have an IRA and a Roth IRA and you put them aside for your retirement and you haven't yet Retired Why are you required at seventy two or seventy three to start taking the RMDs? Yeah, yeah. The reason is, Mary, that the IRS gave you a benefit. You contributed pre-tax money and it grew tax deferred and now they're ready for their share.
So RMDs force the money to come out.
So it becomes taxable income.
Now, why does the fact that you're still working not change anything?
Well, traditional IRAs, and that's all this would apply to, because Roth IRAs do not have a required minimum at 73, but traditional IRAs are not tied to your employer. That I in IRA stands for individual retirement account. And so, because it's an individual retirement account not tied to your employer, the RMDs still apply even if you're working. But again, let me just be clear: only for the traditional IRA, not for the Roth.
Now, there is an important exception, and that is that if the money's in a traditional 401k or workplace plan and you're still working, you may be able to delay the RMD, but that does not apply to IRAs.
Okay. So a Roth RRA, you don't have to worry about taking any RMDs out when you hit? Seventy-two to seventy-three. That's right. There are no RMDs.
So you could leave that money in there. You could pass it on to your heirs and they would be able to pull it out without any tax.
So it's a beautiful thing. It's why I like Roths. And it's why a lot of people, and you could look at this, a lot of people do Roth conversions before their required minimum age.
So they're reducing their future required withdrawals, but that assumes that you would be able to go ahead and pay the tax from another source. Because I wouldn't want you, if you did Roth conversions, even for a portion of your traditional IRA money, I wouldn't want you to have to pull money out of the IRA to pay the tax. But if you could pay with other funds, then you could look at that. And we use a strategy often where you fill up the lower tax brackets. With the Roth conversion.
So let's say you're in the 12% bracket and you can afford to have 5,000 more before you'd go into the next one. You could do a $5,000 conversion and stay in that lower bracket, but push a little bit of your IRA, your traditional, over to Roth. And a lot of folks will do that before your RMD age.
Now, let me mention one other thing in addition to the conversion is what's called a qualified charitable distribution, which is a beautiful thing for traditional IRAs. And that is once you're 70 and a half, any giving that you would like to do that perhaps you were planning to do out of your checking or your savings account, what if instead you do the same giving from your traditional IRA, except it goes straight from the IRA custodian to the charity or your church, and that's called a qualified charitable distribution. And you don't have to pay any Tax on it. Which remember, when you put it in, you got the deduction, no tax. And if it comes out and goes straight to a charity, no tax, that means you avoided tax altogether and it satisfies your required minimum to the extent you give away through a qualified charitable distribution at least enough to cover that required minimum for the year.
Does that make sense? Yeah, well, here's another question that goes off that. How much Can you do through a qualified charitable deduction each year or total lifetime or whatever it is? Yes.
So it does change by year.
So for twenty twenty six, I'm just looking up the number. I believe it is one hundred eleven thousand dollars would be the max per person. Oh, okay, per person.
So, if you were married, each spouse could do their own QCD. If you had two traditional IRAs, you could do up to $222,000. Ah, joy. Do I have an okay My husband is older than I, and so I haven't yet got to that age, but he has. That's what I'm trying to figure out what we can do to save money.
Yeah. So I take if if either of you are 70 and a half, you ought to take full advantage of that qualified charitable distribution. And that number goes up every year, but this year it's 111,000. Oh, okay then. Thank you very much.
Really appreciate it. All right, thanks for calling. Call anytime.
Well, folks, thanks for tuning in today. We're so thankful for you inviting us into your story and asking your questions for your kind remarks about the program. I couldn't do this without the amazing team. We had Dan Anderson today, Amy Rios, Gabby T, and Jim Henry, plus the entire team here at Faith By that makes this happen every day. On behalf of them and so many more, I'm Rob West, and we'll see you next time.
Bye-bye. Faith in Finance is provided by FaithFi and listeners like you.
