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Some of the earliest financial supporters of Jesus' ministry were women. Hi, I'm Rob West. Luke 8 tells us that Mary Magdalene, Joanna, Susanna, and many others followed Jesus and supported his ministry from their own resources. Today, Sharon Epps joins us to explore what their example teaches us about grace, generosity, and using our influence for God's purposes. And then it's on to your calls at 800-525-7000.
This is Faith and Finance, biblical wisdom for your financial decisions.
Well, we always look forward to Sharon Epps stopping by. Sharon is president of Kingdom Advisors and one of the founders of Women Doing Well, a ministry that helps women grow as faithful, generous stewards. And with women poised to play such a significant role in the great wealth transfer we talk about so often, that work is especially timely. Sharon, welcome back. Thank you, Rob.
And as you know, this is one of my favorite topics. I sure do. And that's why I'm so excited to dive in. And I'm also thrilled about this article you have in the latest issue of Faithful Stewart magazine called The Women Who Followed and Funded Jesus' Ministry. You highlight several women who not only followed Jesus, but also supported his ministry financially.
This is an important detail in God's word we might often overlook.
So, Sharon, who were these women and what makes their story so significant?
Well, you'll find their story in Luke 8:1 through 3, and you mentioned several of them: Mary Magdalene, Joanna, Susanna, and many others. And I was so excited when I found this scripture and realized the great role that they had to play in the fulfillment of the gospel. These women actually received from Jesus, and that experience moved them to give.
Some had been healed of evil spirits and infirmities, and Mary Magdalene, in particular, had had seven demons removed from her. In a culture where women rarely held financial agency, they used their own means to underwrite the ministry that changed the world. Their generosity flowed out of the healing and grace that they had already received. That's right. Their generosity began with what they had first received from Jesus.
Sharon, how should that shape the way we understand and practice generosity today? It's really a significant truth because God always pours into us first. Think about it. Our breath, our skills, our life, and our resources are all gifts from him. And when we remember that everything we have is grace, generosity becomes the natural overflow.
And just like those first century women, modern daughters of the king can see their money, time, and talents as tools that God entrusts to them so his love can reach others. The Latin phrase incurvatus in se, meaning curved in on oneself, describes our tendency to turn inward and make life about ourselves. Cher, why is that such a danger, especially when it comes to money? And how can generosity help turn our hearts outward? You know, I think our fast-paced world causes us to really turn to self-care.
In fact, I ran across this made-up word: we become exhaust overwhelmulated, and that means exhausted, overwhelmed, and overstimulated. And in that case, we just turn instinctively inward for relief. But yet, when we can breathe in God's care, we can resist the self-focus and actually flow outward, let His generosity flow through us, even when life feels heavy. Oh, that's so good. These women didn't simply give financially, they also used their influence to serve Jesus' ministry.
What might that kind of faithful influence look like for women today?
Well, we can use our economic resources, our investing practices, and even our daily work to help promote human flourishing by supporting the local ministry, stewarding a business ethically, or investing in projects that restore what evil has taken. We can use our positions and relationships as part of God's work of restoration. We sure can.
So for the woman who wants to live generously but already feels stretched thin, what's one simple step she can take today? Start by remembering your identity. You are a daughter of the king. Pause long enough to breathe in his love and acknowledge that he's our ultimate provider. Then look for just one small, concrete way you can share.
Maybe it's meeting a need that you just noticed today. And those small acts of generosity can become a way of life. Boy, that's such great advice. Generosity begins with receiving God's grace and then faithfully turning what he's entrusted to us outward for the good of others. Sharon, thanks so much for stopping by.
My pleasure, Rob. That's Sharon Epps, president of Kingdom Advisors. This month, we're releasing our first ever special edition of Faithful Steward magazine focused on women and wealth. You can check it out today when you become a partner at faithfy.com/slash give. We'll be right back.
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For licensing information, visit nmlsconsumeraccess.org. Hey, great to have you with us today on Faith and Finance.
Well, we're going to dive into your calls here in just a moment as we talk about whatever's happening in your financial life today, help you navigate that through the lens of biblical wisdom. You want to call, you can do that right now. Our team is ready and we only need you. 800-525-7,000. The lines are filling up.
Still a couple of lines open at the moment. 800-525-7,000. And let's begin in Pennsylvania today. Ralph, great to have you, sir. Go ahead.
Well, thank you. I have invested in some properties I got at really good rates because they were dilapidated properties, and now I'm at the point I don't know what to do. I'm retired. I wanted to leave them to my kids, but I'm worried the kids won't take care of them and be able to upkeep them, so I'm wondering if I should sell them and invest. I'm not sure where to go.
Got it. What is the status of these properties? You said you got a good deal because they were dilapidated. Did you go in and renovate them? I completely renovated them.
Everything is completely new, wiring, windows, doors, everything. Most of the houses are valued anywhere from one hundred to three hundred thousand dollars.
Okay, got it. Yeah, that's really important a distinction there.
So here's what I would say to that. You know, the issue is less about taxes, more about whether or not these properties would be a blessing or a burden to the kids. The properties are now renovated. I would imagine they're producing income. Is that right?
Yes.
Okay. And I think a big question is: do the kids want to be landlords? You know, if they have no interest in managing the 10 to 12 rentals, inheriting them could be an administrative burden, even if they're valuable.
Now, professional management could solve much of that problem. A good property manager could handle the leasing and the maintenance and the rent collection and any tenant issues. That would make the portfolio more passive. And if you kept it until death, under the current law, the heirs, your kids, would receive that step-up in basis, which could eliminate capital gains on the appreciation if they have significantly appreciated beyond what you've put in it, which automatically increases the cost basis. If the children would rather have the cash than the rental properties, then you could sell all or some of them during your life.
You just need to be aware of the tax consequences and then leave instructions for the executor or trustee. You could also have the estate sell the properties after your death if that better aligns with family wishes. Just generally speaking, how to evaluate whether or not it's time to sell, I would just always start with: do the properties still serve their purpose? Are they producing good cash flow after expenses? Is the management becoming burdensome?
Are major repairs or capital expenditures looming? Doesn't sound like it because it sounds like you said they're basically all new with the work you've done. You've got to know the tax costs. Of selling, capital gains, depreciation recapture, potential state income tax, and then look at your reinvestment options. You know, do you want to pay the tax and diversify and put it into a portfolio of stocks and bonds?
And then you also need to think about estate planning. You know, do you hold them to death, get the step up in basis, and then have them sold? Or do you talk to the kids about hiring a property management company and keeping them? I think those are all considerations. Or if they don't want the properties and would rather have the cash, so to speak, would it be better to hold them and then have your trust or trustee sell them after death to avoid the capital gains?
Or do we go ahead and sell them now and move it to a more passive investment strategy? And there would be some considerations on that. But give me your thoughts on all that, Ralph. Yeah, that's my question. Do I uh put all my houses in a trust and leave them that way.
And then, you know, my wife would have them, of course, when I passed, and then just leave them to my children. But my biggest concern is they're not going to be able to keep them up. Yeah, and I'm not sure what to do. And I don't want them getting stuck with big capital gains on the properties and things like that. I haven't paid a lot for, you know, $6,000, $7,000, you know.
Yes.
And then I refurbished them also. Yeah, and you get credit for all that improvements there and the cost basis. But yeah, this is really a question that comes down to a trust, meaning a revocable trust, or sell. And, you know, if the goal is to pass them to your wife first, because most of us guys will pre-decease our wives and then to your kids, that's where a revocable living trust could be an excellent tool. It avoids probate, allows your wife to continue to own or manage the properties after your death, or having a property management company do it, and then pass to your children according to your wishes and preserve the step-up and basis at death because the assets remain a part of your estate.
I think the decision to sell really should be based on investment and lifestyle considerations, though, where you'd say, you know, do you still want to own 10 to 12 rentals? It sounds like from your perspective, you're happy continuing. The decisions really come down to the estate question. Is that right? Yes, sir.
Okay. Yeah, because I'm still planning on fixing properties up.
So, you know. Exactly. And I think, you know, that's a key distinction as you think about that. You know, so I would look toward keeping the properties, assuming the numbers still work. You're comfortable managing them.
You've renovated them. You have more to do. It's generating good rental income.
Sounds like you don't need the proceeds for living expenses.
So I don't see a compelling reason to sell just because of estate planning, but I would place them in, and you'd want to talk to an estate planning attorney about this. It sounds to me like a revocable living trust would be a great option because that allows you to pass efficiently to your surviving spouse if you pre-decease her and ultimately the kids. And then you could place instructions in there that the properties are to be sold at your passing, depending on whether your wife would like that to happen. And certainly, if that's what the kids want, but you'd get the benefit of the tax benefit. Oh, okay.
Yeah, I'm just concerned about my children, you know. I don't want them to, you know, just walk away with the cash and then once the cash is gone they have nothing. Yeah. Yeah. Yeah.
I think that's right. And, you know, if the main concern is, you know, that they won't maintain the properties, you don't have to make today's investment decision based on what the kids might do years from now. You know, if they're producing good income, you're happy to manage them. You can continue to own them. And I think really the next step is to work with that estate planning attorney to create a plan that gives your wife first priority and provides flexibility for the kids.
They don't have to become lifetime landlords. And these could be sold at your passing. And it sounds like that would be what would accomplish everything you're looking for here. And it sounds like you're probably getting some enjoyment out of continuing to own these.
So I think we can do both things at once.
Okay. Well, thank you very much. All right, Ralph.
Sounds like you have a meeting with an estate planning attorney in your future.
So that's probably where I would head next. God bless you, my friend. If we can help further along the way, give us a call. Ohio, Michael, go ahead, sir. Rob, I underpaid on my taxes.
I retired this year. in uh I didn't withhold enough And I just wondered if is the IRS lenient on payments or Will I get uh big ding on uh penalties and stuff? Yeah, you know, it's not terrible, but you do want to get that paid as quickly as you can to avoid penalties and interest.
So I would say, you know, you've already filed, that's critical because there's a failure to file penalty that's larger, so you don't have that. You could contact the IRS about a payment plan, and you typically easily qualify under $50,000, and that stops, you know, any kind of collections actions. But if you've got the money available, you're certainly going to do better pulling from the CD in terms of the cost because the interest and penalties can run 8% to 10%. And that's going to be more than what you're earning on the CD.
So I would say if you've got the money available, I'd get that taken care of. You'll do better at the end of the day breaking that CD and getting that paid in terms of the total cost to you. And then just make sure you fix those estimated payments moving forward.
Okay. Okay, thanks. All right, Lord bless you. All right, a quick break and back with. Much more, including your questions.
Call right now with a financial question: 800-525-7000. 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. 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.
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This is Faith and Finance. By the way, if you'd like to find a certified kingdom advisor in your area, a financial professional who shares your values, has been trained to bring a biblical worldview to their advice and counsel. They've also met high standards in character, competence, and integrity and experience. There's more than 2,000 certified kingdom advisors in the U.S. and Canada.
You can find one in your city. Just head to faith5.com and click find a CKA or go straight there, findacka.com. That's findaca.com. Let's go to Mississippi Wilson. Go ahead.
Hello, sir, this is Wilson. My question. is I have a grandbaby who lives with my wife and I and my daughter. Uh Her dad isn't in her life, so I'm basically both. the only male figure in the life.
I have an IRA that I'm putting together for her for when she's older. have money available to her. for school for a car or whatever. I have a a I'm Hoping to have anywhere between $25,000 and $30,000 when I quit working. I'm 68 now.
So it's through my job that I contribute to it. Every two weeks. My wife and my daughter both know that this money belongs to my granddaughter. But Should I put it? in her own IRA or what should I do to let it continue to make money and uh And for it to be for her, should I just Is either the way it is throughout or just a change up?
It's a great question. I love that you're thinking about it this way. What a gift. Yeah, so one way to approach it would be to keep your wife as the primary beneficiary and then think carefully. How to protect your granddaughter if you were to both pass away.
But with your wife as the primary beneficiary, then as a surviving spouse, if you pass away first, she would have the most flexibility. She could roll it over to her own IRA or just leave it there and continue to let it grow. And, you know, if your wife pre-deceases you or after you both are gone, because your granddaughter's only five years old, you wouldn't want to leave it directly to her.
So you'd name perhaps your daughter as a custodian or the trustee for the granddaughter. You know, if you have complete confidence, she'll honor your wishes. Or you could work with an estate planning attorney to establish a trust for the granddaughter's benefit. The problem is that's going to be a little bit more costly. And I think given the size of the account, I'd rather all that money go to, you know, get the money that you can give to your granddaughter rather than spending several thousand dollars on it.
On a trust. But I think what we want to do, given her age, is make sure you've got a clear pathway so that if you pass away first, it gets to your granddaughter at the appropriate age. The other option is you kind of freeze the money that you've got right here. You keep it invested, but you put new contributions into another vehicle that's a little easier to manage. Maybe it's a custodial account where it automatically becomes her money at 18.
Or, you know, perhaps you put it into a 529 plan to the extent you want it specifically to be for educational purposes. The 529 is really a very powerful tool that would allow it to grow and be available for qualified educational expenses. And maybe the 529 alongside the IRA could be a nice kind of one-two of support for her down the road. But give me your thoughts on all that. That five hundred twenty nine, I really didn't think about that.
But I want to make sure that she has a little bit of money to buy a car. She needs a way to get To and from school. Right now, I'm contributing to it through my job. Uh, my 401k, I contribute to, and I'm contributing money to this, uh, uh, to this. IRA.
When I leave when I decide to retire. Is there an option to keep the money in the IRA for my wife and my daughter to be the custodians of, as you would say? Yeah, you absolutely can keep it in the IRA. They're not going to be the custodian.
So, just kind of to get the terminology straight.
So, essentially, the IRA is yours, I mean individual. It has to be in one person's name, and you can only contribute up to the taxable earned income you have for the year, subject to the maximum contribution limits, which, if you're 50 or older, is $8,600 this year. And then a spouse can contribute to their own IRA as the spouse of a working spouse.
Now, when you leave your job, you can move that IRA wherever you want, but it's still yours.
Now, what an IRA has, though, is what's called a beneficiary or a beneficiary and a contingent beneficiary. And that's ultimately who. Who becomes the owner of the account at your death? It does not go through your estate. It goes directly to the beneficiary.
And if you and the beneficiary pass away at the same time, it would go to the contingent beneficiary. The only challenge is that if your granddaughter inherits this as the contingent beneficiary and she's still a minor, it's just going to create a little more complexity here just because she would have to go into essentially a guardianship type situation or a custodial situation until she was old enough to be able to access the funds.
So that's why I was saying perhaps you'd want to make your wife the beneficiary, your daughter the contingent beneficiary, and then just make sure it's clear to your daughter that this is to be used for the benefit of your granddaughter. But ultimately, she would have to honor that because from a legal standpoint, it's her money once you pass away. Away and your wife does. Yes.
She would honor it, no problem.
So, I am going to cap it then at about $25,000 at start on a. 529 fund. Yeah, that could be great. And you could be the owner of that. Your granddaughter's the beneficiary.
That helps her in the sense that if she ever was able to qualify for need-based aid, this would be an asset of you and not her, which doesn't count against her as much. And it would be there and available for you to use.
Now, you can go to any state to take advantage of a 529. You don't have to use the one in Mississippi unless there's a benefit because of a state income tax deduction. There's no federal tax deduction, but there are often state income tax deductions. But if your state offers no benefit, you could look at who has the best rated plan. It changes currently.
I looked at this just the other day. It's Utah and Alaska and Pennsylvania, I think, are the highest rated. But you could go to savingforcollege.com and they could help you determine where to go next and educate you on what 529s are and how they work. M Thank you so very much for your information. You are a godsend to us.
Thank you so very much.
Well, that's very kind, Wilson. Lord bless you, my friend. We appreciate you being on the program today. Hey, big thanks to my team today. They're amazing.
I couldn't do this without them. Devin Patrick, my producer, Patty Pumphrey handling our phones today. Taylor Stanrich on research today. He's our production manager here at Faith By, plus the entire team that makes this possible on a daily basis. Two actions for you today.
If you'd like to find a CKA in your area, go to findaceka.com. And if you'd like to support FaithFi, learn more about becoming a partner when you go to faithfi.com slash give. Then come back and join us tomorrow. We'll see you then. Bye-bye.
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