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Now, let's dive into the podcast. When one listener's burden becomes another's calling, the body of Christ went to work. Hi, I'm Rob West. Every now and then we get to see what happens when God's people respond to very real struggles in extraordinary ways. Renee in North Carolina joins us today to share how a simple phone call led to a powerful act of generosity.
And then it's on to your phone calls at 800-525-7000. That's 800-525-7000. This is Faith in Finance, biblical wisdom for your financial journey. Yeah.
Okay, so a few months back, we heard from a widow in North Carolina who's raising her special needs grandchildren on a fixed income. She was carrying a heavy load, including mounting medical debt. That caller joins us now, Renee. We are so grateful you're back with us today. Great to have you.
Oh, thank you for having me, and thank you for everything you guys have been doing. It is our privilege. And I want you to take us back to that day you first called. What was life looking like at that moment, and what led you to pick up the phone? Basically, it seemed like I was running out of options.
There's a limited amount of money and the kids were beginning to need more and more intervention and I wasn't able to supply that. And yeah, it was disconcerting. Things were falling apart. You know, it was like um when you have a military spouse that is deployed, everything can go wrong, will. And that's sort of where I was at.
Mm.
Well, we were so grateful to get your call, and after you shared your story, a listener named Duane felt led to help. When you first heard that someone you had never met wanted to step in, take us into that. What went through your mind? Uh I'm still trying to process it. The first thing that I heard was that you were willing to help me find a counselor.
That was mind-blowing. And then I get a message, I think it was within the next 48 hours, that there was this person that wanted to help. And but why me? There certainly had to be more people deserving than me. But there was this opportunity, and this had to have come from God, because it was just a fluke that it all was transpiring.
And you don't turn him down. You don't turn God down. That's right.
So that's where we went from there. We absolutely believe this was God ordained, Renee. And for those that don't know, we partner with a ministry called Helping Hands. They walk through a careful process in each of these situations, reviewing documents and bills and conducting interviews. I know they met with you several times, Renee.
They confirmed the need, and then the bills were paid directly.
So, when you learned your case had been approved, I want you to talk us through the impact that had on you and then share the practical assistance that was provided. Mm.
I still don't quite understand the entire process. I know that there is now a pool of funds that was available to me and that they could help me with my mortgage, they could help me with food expenses. I had just started going to the food bank with the kids. doctor's appointments were interrupting being able to go to the food bank.
So as inflation was hitting and spiraling, getting help for groceries was amazing. Getting help for gas money as the gas prices were back up. It was just mind-boggling. Oh, I can only imagine. Unfortunately, we have just about a minute left.
What would you say, Renee, to Duane and the listeners that really prayed for you and supported you during this season? To the listeners first. Um you can feel the prayers that go out. It's palpable. And it doesn't just happen with the one incident.
A series of things happened following this that I knew people were out there actively praying. I'm on cloud nine most days, and I'm able to smile and give genuine hugs and devote my brain to my girls. And that is a God's gift. Yes, it is. That's huge.
to Dwayne. I am forever in your debt. I just found out your name last night. And I can now add it to my prayers. for you.
Your heart is huge. I don't know your situation, but God bless you. Just truly, God bless you, because you made a world of difference for me and my girls. A world of difference. And thank you.
Renee, incredible. Listen, Galatians 6:2, bear one another's burdens and so fulfill the law of Christ. That's what we're doing together. It's a picture of the body of Christ. God bless you.
You'll continue to be in our prayers, and thanks for joining us today. We'll be right back. 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. Faith in Finance is thankful for support from The Good Investor, a book by Robin John. In his book, Robin shares his journey from an immigrant child struggling in school to co-founder and CEO of Eventide Asset Management, a faith-based investment firm. This Faith and Work memoir seeks to inspire readers to view their work and investments as opportunities.
To honor God and bring blessing to the world. More information is available at goodinvestor.com. That's goodinvestor.com. 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. It'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. Let's go to Florida. Eric, how can I help you? My concern is credit repair.
So I'm just trying to give some advice on credit repair. Yeah, very good.
Well, here's the thing, Eric. You know, as we think about this topic, the good news is credit can improve at any age.
So, you know, somebody in their early 60s, and I see that on the screen here, that you're 62, working full-time. The focus really should be probably less on chasing a perfect score and more on what I can do to systematically improve that score over time. Usually, that comes in the form of focusing on the big factors that help credit. And they're pretty simple. Uh number one, pay every bill on time.
Number two, lower credit card balances because one of the key drivers of your credit score, which will over time repair your credit, is what's called credit utilization. And that's just a fancy term for. What percent of the balance Or what percent of the limit is the balance you're carrying?
So if you have a $10,000 limit. And you're carrying more than $3,000 month to month? That's going to start to pull your credit score down. You want to be between 10 and 30%. Ideally, we wouldn't be carrying anything, but even if you pay it off every month, if you do it after the end of the cycle, it's still going to be reported to the Bureau that your balance is over that 30% threshold.
So pay every bill on time, lower credit card balances, avoid opening too many new accounts because every new account you open requires an inquiry into your credit. That's built into the formula and it will pull it down temporarily. And then, four, keep older accounts open if possible. Because that history, that longevity of you having old credit relationships, especially ones that are in good standing, that's going to drive toward a better credit score over time.
So I think beyond that, I would also be pulling your three credit reports regularly, looking for errors or old issues that need to be disputed. But ultimately, it's not about a magic program. Anybody who's quote selling credit repair services, I'd be cautious about. Really, the most legitimate improvement comes from what you do on your own through time, consistency, and reducing debt, not costly programs. But let me stop there and get any follow-up questions you have.
Okay, so what about paying collections off? Yeah.
So it's important that you get those paid down to zero over time, whether that comes through you paying in full through maybe a payment plan or what's called a settlement. And it might be noted on the credit file that it was settled. But the key idea is: yes, those collections and those late payments are black marks. They are going to pull that score down. But as they become more and more distant and they're further into the past, They're going to affect you less.
And the key is getting that reported balance on an account that was at one point in collections down to zero. And so, the way to do that is to negotiate a settlement by getting on a payment plan. You can even ask for a pay-to-delete agreement. Not all collectors will do that, but that would be where they agree in writing that if you pay it in full, they're going to delete it. But typically, collections are going to stay on your credit report for about seven years from the original delinquency date.
And again, newer collections hurt more than older ones.
So time will help, but also getting it down to zero so it was either paid for or settled in full. Yeah, so look for the deletion letter. That'll even if you settle that'll report knocked off your credit, right? That's right.
Now, they may not be willing to do that. In many cases, they're not, and then you're just going to have to wait for the seven years for it to fall off. But remember, as it becomes older, it's going to impact you less.
Now, the other thing to remember is, and this is important: paying a collection doesn't always instantly raise the score. But lenders often prefer seeing paid rather than unpaid. And again, your best defense if you can't get it deleted is time. You just want that to be in the past, and you want all of your new credit relationships to reflect that you're an on-time payer. Hope that helps, Eric.
Thanks for your call. It was a great question. Let's go to Ohio. Dan, how can I help you? Yes, sir.
I have a question on C D's. I've got two grandchildren. One's uh seventeen and a half. And the other one is sixteen. Um they inherited some money from uh another relative and their mother had put the money in a couple of C D's It's only like $10,000.
those C D's are coming due and there's a ten day grace period when you can do something with it. My question is, should we allow it to roll over for another two years? It's getting like four percent interest. Yeah, very good.
You know, when we're dealing with a question like this, you know, it always starts with: what is the purpose of the money? And so if the money is going to be needed soon for college or trade school or a vehicle or early adult expenses, then keeping it safe and liquid makes a lot of sense. rolling it into another short term C D is reasonable if the rates are still attractive, and I would say north of four percent they are, and preserving principal is the priority. But because they're young and have time on their side, this also may be a moment to think longer term. Where you could actually put this to work in an investment, but it's all going to come down to the purpose of the money, which is going to drive the time horizon and the risk level that we're able to take.
So, give me a little bit more on how you see this money being used in the future.
Well, I believe that they will be set themselves for school, trade school. The money's not needed. You know, I just wondering whether there's a better investment to make more money for them or Allow them to get closer to twenty-one before they have access to it. Uh, I don't want them to have it now, obviously. Yeah, is it in a custodial account?
Is it titled with titled to the child and to their mother?
Okay, got it, which is my daughter. Yes, got it.
So I think that's key. If they don't need the money soon and it's already in custodial accounts until age 21, it really becomes more of a long-term growth decision. And again, at 16 and 17, they have something incredibly valuable, and that is time.
So, locking everything back into short-term CDs may be very safe, but it's going to limit long-term growth potential.
So, a balanced approach could be. To keep some safe if desired, but consider gradually moving part of it into diversified investments for longer-term growth. Because even relatively modest amounts invested young can compound significantly over time.
Now, at the age of majority, and sounds like it's 21 here, they're going to be able to do what they want with it, including liquidating whatever investments you have and spending it however they wish. You know, that's just the reality with a custodial account. But perhaps you getting it invested might encourage them to leave it alone.
So I'd probably think about opening maybe a robo-advisor account, either Fidelity Go or the Schwab Intelligent portfolios, and see if you could open a custodial account, move the money over, get it invested in some low-cost index funds with a bias toward stocks, less about bonds, and just let it grow, forget about it, and then let them revisit this in five or eight years when they need the money, or perhaps leave it right. Right there. Stay in the line, Dan. We'll talk a bit more. We'll be right back.
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Thanks for joining us today on Faith and Finance. 800-525-7000 is the number to call. Let's head to Texas. Ron, go ahead. Hello.
Yes, sir. Thanks for taking my call. My question is: I'm a sole proprietor. I've been working 47 years, and I'm still intending to. until the Lord chose me otherwise.
But my concern is how do I balance giving the to the family members, people that are in need, and I've always are ready and available to do that. but some have a problem with work. and they don't. And so now when emergency hits, they come and they have these needs and they give me this number that they need, and it's usually huge. And I tried to Do what's proper and not so.
But I just need to know, in your opinion, how did you balance? Where did you draw the line in this? Am I maybe? Am I really gifting as the Lord wants me to? Yeah.
Wow. That's a tough one, Ron. And it's where the rubber meets the road, and it's where a lot of discernment comes in. And I think it starts with a recognition that you are the steward. And so, this doesn't belong to you.
You're not deciding how much money of yours to give them. You're deciding how much of God's money that He's asked you to manage that you're to give them, which seems like a nuance, but it really does change the conversation a bit. It changes the approach because you're acting on behalf of the King of Kings. And I love the idea that you want to help your family. That's very generous, but the extent to which you're doing it in ways that enable idleness.
Or threaten your own stability, I don't think is biblical stewardship. And the tension is real here. It's one of the hardest parts of parenting adult children, and that is knowing when to step back. You know, over time, you know, we need to wrestle with: are we helping a child move forward or delaying lessons they need to learn? Are we offering support or carrying responsibilities that now belong to them?
And I think the idea here is that healthy support should encourage progress, not prolong immaturity. And that's an act of stewardship, not only of your resources, but of their formation. And the goal is not to eliminate every hardship because often what we recognize is that maturity takes root in the soil of challenge, of struggle. And so we want to think through that, pray through that, ask for wisdom, James 1:5, as we discern how to proceed. And so I think perhaps a framework for this, Ron, given that idea is that we start by deciding in advance, what can I afford to give, if anything, after taxes and business expenses and retirement needs and emergency savings, maybe you create a monthly giving category, maybe even one for family help.
And when it's gone, it's gone. And then the second is set those loving boundaries. I care about you, but I'm not able to keep giving money. I can help you make a budget. I can help you look for work.
I can connect you with local resources. That keeps the door open to support without becoming the source of ongoing dependence. Because I think scripture encourages. Both compassion and responsibility in these cases. Remember 2 Thessalonians 3:10: If anyone is not willing to work, let him not eat.
And then 1 Timothy 5:8, it also reminds us to care for our own household wisely.
So we've got to balance the tension between these two things: the stewardship God has asked you to exercise, the ultimate formation and what's happening in your adult child's life or family member's life, who's not willing to work hard as unto the Lord, which clearly is part of God's admonition. And thirdly, are you prolonging dependence on you and others rather than the maturing process that needs to occur there? And at the end of the day, there's not a right or wrong answer. It really is a discernment idea for you. Does that make sense, though?
Yes, sir, very much so.
Okay.
Well, you know, the last thing I'll say is maybe you look to tie the support to clear next steps. You know, maybe it's progress toward employment or, you know, pursuing education or training or contributing to household responsibilities when it's an adult child living at home, or, you know, working towards specific financial goals or matching the payoff of debt. In some cases, it's just completely abstaining and just saying, listen, I've given, but I feel like your next step is really to get out there and get that employment and just lovingly decline further assistance, knowing in your heart that that may be the very best thing you can do to put them back into a mode of taking personal responsibility and ultimately dependence on the Lord. Ron, we're grateful for your call today. To Palm City, Florida.
Kobe, how can I help? Thanks. I appreciate the program. Been listening back since the Larry Merquette days. Oh, cool.
Thanks. I've got a 401k through work and I believe it's pretty much invested in Like high-risk type things because when the market's good, it makes money hand over fist, but when it's not doing so good, it loses like big time. Through the company, it's called Empowered. It used to be Prudential. And in their literature, there's an area where it says if you need help investing.
But I'm just wondering your thoughts as far as investing through that company? Or I don't know if there's any other options as far as since I'm still working with the four hundred one K. Yeah, yeah, very good. Yeah, that's Empower is one of the largest retirement plan record keepers in the United States.
So they, you know, offer employer-sponsored retirement plans and the typical range of investment categories. You know, you've got your target date funds, which are kind of the simplest way to make sure that as you're getting closer and closer to retirement, the mix of investments is automatically shifting from aggressive to conservative. Then you've got your index funds, you know, which track the SP 500. And then there's actively managed funds, both on the bond and the stock side. And then kind of the run of other types of Categories, you know, large cap, mid-cap, small cap, domestic, international, that type of thing.
And then they do have managed account services where they will essentially manage your account for you. I wouldn't be able to say whether or not, you know, what that has added in terms of a historical performance and whether, you know, Empower can justify the fees that they're charging and give you a better rate of return. Because at the end of the day, that's what you'd be looking for: somebody to outperform the indexes or the managed accounts because you're going to have to pay for that service.
So perhaps you reach out to them and just find out what kind of data they can give you on how their performance has done versus the market. Apart from that, if you feel like you're being too aggressive, the target date fund could be a great option where essentially you're still kind of in the broad market, but you're ensuring that as you get closer and closer to retirement, you're not too concentrated in stocks and therefore too aggressive. Does that make sense? Sure. Is there like an average as far as percentage that they normally charge?
Yeah, I'm not familiar with them. I mean, I wouldn't be surprised if they're charging somewhere between one to one and a half percent a year if it's actively managed of the total investable assets. But that would be one of the first questions. I would want to know: kind of, can you give me some historical performance on how your managed account has performed versus the market and the other passive options? And what are your fees?
Kobe, I hope that helps. Thanks for your call. Thank you to Tahira, Amy, Omar, Taylor, and Rihanna. We'll see you next time. Bye-bye.
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