This faith and finance podcast is underwritten in part by Christian Healthcare Ministries. If your health insurance rates are the same as your rent or mortgage, something has to change. Christian Healthcare Ministries is your low-cost, faith-based alternative. You can save hundreds every month with more freedom to make healthcare decisions on your terms. And unlike health insurance companies, CHM isn't raising prices for 2027, so you get assurance that stays affordable in the new year.
If you're single, growing your family, retired, or starting a business, they've got something for you. Programs start as low as $115 a month, with optional protection for catastrophic medical events. Start off 2027 the right way by visiting faithfi.com/chm. It's almost health insurance open enrollment time again, but what if you could skip it? I'm Rob West.
For many, this is the time of year to sort through health plans, premiums, deductibles, and coverage for the year ahead. But there are alternatives to traditional health insurance that don't limit enrollment to a few weeks each year. Lauren Guidic joins us today to explain one of them, and then it's on to your calls at eight hundred. Hundred five two five seven thousand. This is faith in finance: biblical wisdom for your financial decisions.
Lauren Guidex serves as senior director of external affairs for Christian Healthcare Ministries, the nation's longest-serving health cost-sharing ministry, and a valued underwriter of this program. CHM provides a biblical, voluntary approach to healthcare where members share one another's eligible medical expenses. Lauren, welcome back. Thank you, Rob. I appreciate being back on the show with you.
Well, we always look forward to it, Lauren. Open enrollment can feel overwhelming for families trying to choose the right health care. What are you hearing from people as they sort through their options?
Well, you know, there's a lot of things for people to think about, and it's very easy to feel overwhelmed this time of the year. In fact, there was a recent survey done by KFS, which is a healthcare policy organization, and they found that among people who enrolled on the healthcare marketplace. Sixty-three percent said looking at their options made them feel worried. You know, fifty-two percent said angry, and forty-six percent said confused.
So there is a lot of negative emotions surrounding this this time of year in terms of healthcare choices.
So. You know, Christians though we have a different alternative. There's an approach to medical costs that reflects our faith and values, and cuts through the confusion. And that is Christian Healthcare Ministries.
Well, that's exactly right. And with CHM, unlike traditional health insurance, there's no limited open enrollment period.
So, what does that mean for someone considering membership? This is the time of year when people are thinking about maybe changing their health insurance or their healthcare plan. You know that's very normal. But with CHM, the conversation doesn't have to happen just during open enrollment time.
So because we're not an insurance company, we're a health cost sharing ministry where Christians help each other with their medical expenses. You know they can join CHM anytime that's right for them. Instead of having to fit into a predefined window like open Yeah, that's really helpful, and I know CHM is in the midst of some pretty remarkable growth right now. What do you think is behind that? That's a great question.
You know, we have seen just in our second quarter more than six thousand six hundred new applications. Through our marketing efforts, which is an eight percent increase year over year, so it appears that people are just looking for you know obviously affordability because healthcare has become so expensive in recent years, but also peace of mind, and we like to call it assurance instead of insurance with CHM. Yeah, that's great, and I know one of the exciting things is that more than eighty percent of the people visiting CHM's website are brand new. What does that tell you about the level of interest you're seeing right now? I think we're reaching a larger portion of the Christian population because, like I said, people are looking for an alternative to their expensive health plan.
So people who've never really thought about health cost sharing before are jumping on board, and they want to know what choices that they have. Yes, and traditional insurance is not their only option.
So CHM's been around for over forty years, and and we've been able to offer help with medical costs that are rooted in community. Community and stewardship, and believers helping carry one another's burdens. If you want to learn more, go to faithfind dot com slash chm. Lauren, just about thirty seconds left. Give me just one quick summary for somebody who's just hearing about this for the first time.
What is CHM? It's an alternative to health insurance whereby Christians all over the country contribute each month. In order to help share each other's medical costs, and what I like to tell people is, it's not health insurance, but the ultimate destination is the same because your medical bills end up being taken care of. It's just the journey to get there is a little bit different, and it's worth looking into. It sure is.
We have some of our team members that use CHM; they love it.
So many of our listeners have made the switch to CHM, and when it comes to managing healthcare costs, Christians have. Choices and with CHM, you don't have to wait for open enrollment to explore another option. Lauren, so thankful for your time today. Oh, thank you for having me. That's Lauren Guidak with Christian Healthcare Ministries.
To learn more about how CHM works, explore membership options, and see whether health cost sharing might be right for your family, visit faithfi. dot com slash chm. That's faithfi. dot com slash chm. We'll be right back with your questions.
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Start your free 30-day trial today to lock in 25% savings. For a limited time at faithfi. dot com slash app. If your health insurance rates are going up in twenty twenty seven, we have a solution for you. Christian Healthcare Ministries is an affordable, faith based alternative.
Now you don't have to put off seeing your doctor for budget reasons. Programs start at $115 a month, with more freedom to make healthcare decisions on your terms. Plus, CHM isn't raising prices for 2027, so you get assurance that stays affordable in the new year. Learn more at faithfi.com/chm. That's faithfi.com/chm.
So glad to have you with us today on Faith and Finance. Really looking forward to hearing from you today at eight hundred five two five seven thousand. The calls have started to come in, but we've still got room for you at the moment.
So if you have a question today, go ahead and call right now. Again, that number eight hundred five two five seven thousand. Let's head to Ashland, Ohio. Barb, how can I help you? Yes, Rob.
Thank you for doing what you do and helping people out the way that you do. You are a blessing to many. My husband and I have been wondering. We had our son and daughter-in-law open up the Trump accounts for our two grandchildren, and they also opened the five twenty-nine up at the same time, not knowing. Which one was better?
Okay, our thoughts are. This is where we would like your advice. Our thoughts are right now that the Trump account may be a better way for, as far as what we contribute along the way, to put it into as that way. If they don't go to choose to go to college, or if they would like to save it for a down payment on a house, or then if they want to roll it over into, I believe a four hundred one k or a Roth down the road and carry it on, add to it for their retirement, that they would have that option. The ages are eleven and seven at this point.
So the parents kind of wanted to go more conservative with that Trump account, and I guess they can market how they want the earnings to be in there or whatever the investments. Excuse me. And so they kind of marked it as safe as could be. And my husband and I kind of thought, I don't know that that's probably what the best strategy would be.
So, want a little bit of guidance because. Far from, I mean, we don't know who to ask. There are, as you know, very relatively new to the market, and so we're just trying to get educated a little bit more. Yeah, and so you and your husband think they should make it a little more aggressive, just given their ages and so forth. Yeah, yeah, yeah.
So that's helpful. I think there's a couple of questions here. One is which account better fits your goals, and then second, how much investment risk is appropriate. You know, I wouldn't assume putting the majority in the Trump accounts is better simply because they're more flexible than five twenty nines.
So let's let's deal with that. First part first. You know the point about the flexibility is valid, but there is a catch.
So the five twenty nine is primarily designed for education, although it's more flexible than it used to be. Qualified educational withdrawals are tax free, and then you can also roll up to thirty five thousand into a Roth IRA, and you can get money out on a pro rata basis for scholarships and grants. The Trump Account isn't restricted to education.
However, they generally can't withdraw the money at all during the growth period before eighteen, and after that period, the traditional IRA type rules apply, which just means early withdrawals can potentially face tax and a and a ten percent additional tax until you know, unless exceptions apply, such as certain higher education or first home expenses.
So the five twenty nine is. The better tax treatment when the money ultimately goes toward qualified education, Trump account potentially broader long long term purpose, but not simply a penalty free account. The child can spend on anything in terms of the investment risk. You know, I think the idea that you would want to be a little more aggressive, I think, is the right one. You know, especially if this is longer term money.
Because you know we we have quite a bit of a time horizon here, and you know I think the opportunity is to see this grow in a meaningful way. You just need to recognize that if we got into a recession, you know, and the market was down twenty five or thirty percent, which it certainly could be, that you'd be willing to wait that out and let it come back. But if you guys are willing to absorb that downside in kind of a not a worst case scenario, but a Typical recessionary environment and waiting for it to recover. Then I think I certainly would agree with you that it's better to take a longer term approach and let's get this money working for them and and trying to grow it in a meaningful way. But let me stop there and get your your thoughts or questions.
Um. Yeah. I mean, we just didn't really know which way to go. And I'm kind of one of those that I like the aggressive, but yet I don't want to take too much. I want aggressive, but not too much.
And as obviously we have done with our own, you know, along the way. But I just, you know, want to make. I guess I want to. We are a little late in getting started with this for various reasons, but. I figure at least we got started in trying to you know to do this, and so I guess I'm just trying to contribute as much as we can, but then to be conservative, but yet not too conservative.
I guess that's where I'm thinking. Don't be too shy. I guess kind of.
So that would be. I think you answered pretty much what we were after. We just wanted. We just wanted your expert opinion because you do deal with this on a daily basis, and we didn't know who to ask. You know, that would be we can trust.
Sure.
Well, I appreciate that. Here, I mean, here's the bottom line: is that you know, for the money in the Trump account, where you say, you know, we want a little more flexibility and we want to take a much longer term time horizon, then you know, that's where the Trump account can be effective. The the money in the Trump account is going to be invested in stock market index funds, and so you know, right now, new contributions initially go into the the State Street Spider, which is just an S and P 500. ETF, and then your grandchild would effectively own tiny pieces of hundreds of large U.S. companies.
U.S. Treasuries also selected an additional broad market ETF or a few of them that you'll be able to choose among the Vanguard Total Stock Market, the iShares Core S and P. There's a few others, but they're all very similar.
So it would be you know in those large stock funds, and you know would be subject to market. Movements there, so you know. I mean, that's what you're going to have to use inside that Trump account. Which, again, as long as we're taking a long time horizon, I'm not necessarily opposed to that. Right.
Okay.
Well, thank you so much for your input. We really appreciate it.
Well, happy to do it, Barb. And I love the fact that you guys are thinking about how to to seed these accounts for the future. These these kids will benefit greatly from that, and you know, I know it'll be a blessing to them down the road. And hey, if I can help further along the way, don't hesitate to reach out. Thanks for your call today.
By the way, we do have a few lines open still today. We are taking your calls and questions on anything financial. Eight hundred. Five two five seven thousand. Let me take this opportunity before we hit that next break to remind you that you know one of the most common questions we're getting right now is from folks saying, "I just can't make the budget work." In fact, what our coaches are telling us, we have certified Christian financial counselors that are a part of our team that work with a lot of our listeners free of charge, just as a part of our ministry, and they're telling us they're even seeing a rise in the number of families that are buying.
Together, because of the dramatic rise in housing prices, that's the only way they can make the numbers work. They're actually going in saying, "We'll, we'll divide. You know, we'll use the kitchen together. Maybe we'll take the top floor. You take the bottom floor, and let's go." You know, it's just really difficult out there right now.
Well, one of the ways to stay on budget if you're struggling is to have a spending plan and a system to control the flow of money. I would recommend that you check out. The Faithfy app—you'll find it at faithfy.com. It's based on the tried and true envelope system, but in a modern, beautiful, simple expression, right there on your smartphone. Julie and I use it every day, and there's no way we'd know what was left in eating out or in my girls' clothing fund without the Faithfy app.
So, download it today from your app store. Just search for Faithfy. We'll be right back. Right now, more people than ever are looking for biblical wisdom to navigate their finances, and you can help meet that need. When you become a FaithFi partner, you're equipping believers to trust God, steward His resources well, and live with kingdom purpose.
Partners receive early access to our newest resources, our quarterly Faithful Steward magazine, and the Pro version of the FaithFi app. Become a FaithFi partner with your gift of thirty-five dollars a month or four hundred dollars a year at faithfi.com/partner. Faith in Finance is grateful for support from Eventide Investments, a faith-based asset manager pursuing investing that makes the world rejoice. Eventide invests from a biblical worldview. Helping values-aligned investors pursue integrity, impact, and performance through their portfolios.
More information is available about how you can align your faith with your investments at faithfi.com/eventide. That's faithfi.com/eventide. Delighted to have you with us today on Faith and Finance. We're taking your phone calls, applying that wisdom from the Bible to what you're tackling today in your financial life as you give, save, and spend. And so, if you've got a question, we'd love for you to call right now.
We do have some lines open at eight hundred five two five seven thousand. The team is standing by. Again, that number eight hundred five two five seven thousand. Call right now. Let's go to Georgia.
Wm. Bw Becky, go ahead. Hey Rob, thank you so much.
Okay, so I'm I'm almost seventy one, and I've owned my home, and I'm looking to move to my home county where taxes are far less, and there's not going to be a bunch of data centers. But anyway, how do I best fund? I want to buy the home first because I have. Cats and dogs. A dog, and it's going to be too hard to try to find an interim place.
So, how do I mean? You know, I have enough in stock funds that I could liquidate stock and and pull money to buy the home, and then replace it when I sell mine. But is that going to cause a big taxable event? Because that's going to be shown as income.
So should I just pay the fees and get a mortgage instead, and then pay it off in like six months? Yeah, is that money you said stock funds? Is that a retirement account of some kind? It's not in a no. It's not in a qualified account, but it funds my retirement.
You know the dividends do in the Jiffy Fund and something else, but but no, it's not a qualified account. No.
Okay, got it. Yeah, I mean, so that that's certainly an option. But you're right; there there certainly will be a taxable event there, because even though it's not going to be counted as income, you are going to have any capital gains.
So, for example, if you sold, you know, a couple hundred thousand dollars of stock that cost you originally a hundred and fifty thousand, the potential taxable gain, what's called a capital gain, is fifty thousand, not. Two hundred. If you've held the investments for more than a year, then that generally receives the long-term capital gains treatment. Which for most people, when the total gain plus of all of your income is less than about six hundred thousand dollars, it's going to be at fifteen percent.
So whatever that gain is, you would have a fifteen percent.
Now you could be strategic at what you sell because you could offset some gains with some capital losses, and there is a strategy there that would allow you. To do that, but that money not only creates a taxable event, but it also you know requires that you be out of the market for a period of time, and so there's the opportunity cost on that as well. Apart from that, you know, generally, what I would say is, you know, it really comes down to whether you can qualify for a mortgage on the new house while still owning the old house.
So you could buy the new home with a mortgage, move yourself, the animals, and. Then list the old home, and when the old home sells, you could use, of course, the proceeds to make a large principal payment on the new mortgage, or potentially pay it off entirely. The downside of that is you've got to carry both mortgages, and it may take longer to sell than you think. And you need to not put yourself in financial jeopardy. The other issue is if you're not able to pay that loan off entirely, and you just pay it down with the proceeds.
Of that home sale, well, then you still have that you know that higher mortgage payment than you might want, and so you just need to be able to absorb that into your budget. The other option is you can ask the lender about a bridge loan or borrowing against the equity in the current house.
So that's generally worth investigating when someone has substantial home equity but needs that equity before the old home sells. And then I think that third option would be that that taxable account, the non-qualified investments, and you just want to be strategic about what you sell and when, and any potential taxable event you're creating. But obviously, that gets you out of having to pay any interest. It also gets you out of the potential that you know you you have to carry this longer than you think, and it creates problems from a cash flow standpoint. But if You're living off of those retirement assets, and you know you're pulling that out.
Obviously, you're going to have to factor that in as well. But what do you think about all that, Becky?
Well, that makes sense.
Now, I don't know anything on my home; I own it outright.
Okay.
So, and and I'm going to buy a home most likely that costs more than than my home. I think I could get I don't know two hundred and ten, two hundred and twenty for mine, maybe.
Okay, so that's a good thing in the sense that you know that allows you to only take on one mortgage. You need to count the cost, make sure it fits in the budget. But then, as soon as that other home sells that you're currently in, you could pay it off, and you're back into a situation where you're free and clear. The key is just really looking at okay, what is that mortgage going to be, especially with interest rates higher, and make sure it doesn't create a financial hardship for you. I hope that helps.
We appreciate your call. Let's quickly go to Ohio, Alyssa. I have just a moment left, about a minute. Go ahead. Hi.
So my husband and I live with my father in law, and we need some repairs done on the house. And he offered to loan us the money, like because we're going to start paying for all the costs of the house. And he offered to loan us the money from his own retirement account. He's seventy years old, but the concern was. If we have to pay back taxes because he makes about fourteen thousand a year from like retirement and or social security, and he said if he takes out like thirty grand, then we would have to help him with the taxes on that.
If that makes sense. It does because there is no loans from IRAs, and so he would have to take a distribution, which means every bit that he takes out would be added to his taxable income. And so what he's saying is, because I'm going to have a bigger tax bill because I pulled this money out and gave it to you, I need you to help me pay the taxes. Yeah. So, is that going to be a better rate than like getting like a loan to pay for the repairs that we need?
It just depends on how long the payback period is. The problem is, I mean, let's say it's twenty percent in taxes.
So, let's say we spread that twenty percent out over a five-year payback. How how long are you planning to pay it back over? What period? I definitely would not want to do longer than five years. Hopefully, less than that.
All right. And is he going to charge any interest? I don't believe so.
Okay.
So you'd have a big bill on the front end, but it would be better over time because if you spread that twenty percent worth of taxes, you know, out over five years, it's it's going to be likely below the prevailing interest rate you would pay on the amount that you borrowed.
So you know, you. You'll pay probably let's say seven percent a year, five years.
So you're going to end up paying seven percent every year for five years, so thirty five percent, and then you know versus let's say twenty percent or less for him.
So I think it's going to end up coming out better on paper. I think the other side of this is just it's going to change the relationship because now he's your lender, you're the borrower. The Bible describes that as a master slave relationship.
So what if something goes sideways? And you're not able to pay it back despite your best efforts, is that going to damage the relationship?
So, I think it's it's going to be better for you on paper, even with that upfront bill, as long as you can cover it. But you've got to think about the implications on the relationship if something unexpected happens. Does that make sense? Yes. Thank you for mentioning that.
Yeah. Okay.
All right. God bless you, Alyssa. Thanks for calling today, folks. Thanks for being with us today. Thanks to my team today, Devin, Robert.
And Taylor, we'll see you tomorrow. Faith in finance is provided by FaithFi and listeners like you.
