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dot com slash cc. Or call eight hundred five five seven nineteen eighty five. In John sixteen, Jesus tells us where to find peace when life gets difficult. In the world, you will have tribulation, but take heart. I have overcome the world.
Hi, I'm Rob West. Jesus never promised us a life without trouble, but He does promise His presence and peace in the midst of it. Today, Howard Dayton joins us with a hopeful message about navigating life's difficulties with faith and wisdom. Then it's on to your calls at eight hundred five two five seven thousand. This is Faith and Finance: Biblical Wisdom for Your Financial Decisions.
Howard Dayton is the author, teacher, and founder of Compass Financial Ministry, and a familiar voice to many of you as the former host of this very program for decades. He's helped Christians understand and apply biblical wisdom to the way they manage money. Howard, what a pleasure to have you back with us. Just wonderful to be with you, Rob.
Well, it's a joy for us as well. And Howard, we're taking a look at a chapter in your book. Your money counts. One of our favorites, of course. It's called Crisis: The Storms of Life.
And you begin with a story that would be devastating to all parents. I certainly know, being a parent, how painful this would be. Tell us that story.
Well, Rob, we were in the process of adopting our our second newborn baby. His name was Andrew. He was just gorgeous. And when he was about two or three months old, we thought he might have trouble with his sight, so we took him to a friend, an ophthalmologist, to check him out. He told us that he was blind because the optical nerve was dead, and that we should take him to a pediatric neurologist because he sensed something wasn't just right.
The long and short of that was that he was only born with the stem of his brain. We discovered later that his birth mom had been taking hard narcotics during the pregnancy. Andrew lived to be seven. He was about two feet long, stiff as a board. He was becoming a hydrocephalic.
It was a really challenging time, and we just loved him like crazy. But it was an emotionally exhausting experience for us as a family. I can remember the time that my wife Bev got a phone call; it was for her, and she was so exhausted that she didn't know that she was home.
So it was a it was a challenging time. Oh, I can only imagine, Howard. It's a powerful reminder that difficulties can come at any time and take many different forms. Was that one of the lessons you took away from that season? We sure did.
You know, some challenges build slowly; they can be anticipated. Other challenges appear without warning.
Some are resolved quickly; others are chronic.
Some reflect the consequences of our Actions we make a dumb decision. Others are completely beyond our control. And when you think about it, Rob, some crises impact an entire nation. Others are isolated us as individuals. And Rob, as you well know, crises often involves money, where businesses and jobs are lost.
A major illness, death of a family member—I mean, the list goes on and on. Just these these difficult times really can exert major pressure on us and on our finances. Howard, I know, in just a moment after the break, you're going to take us into God's word and encourage us during a time of crisis. But you mentioned something about marriages and the stress that can be caused by challenging times on your marriage. What did you learn in that season as you journeyed with Bev that you might share with us today related to our marriage specifically?
I think communication is really so key. Set aside a period every single day that the two of you can talk, not to argue, not to fight each other, which can often happen when you're in the middle of a real crisis. But just to communicate with each other, express. How you're feeling, which is pretty tough for guys, as you know. Yes, but really, what's what's going on with you?
How can I best serve you? How can I be the best husband or the best wife that I could possibly be for you? That's our good friend Howard Dayton, former host of this radio program and the founder of Compass Financial Ministry. If you're just joining us, we're talking about the spiritual and practical principles that can help you manage money wisely, so you have more margin to spend, save, and give. I'm Rob West, and this is Faith and Finance.
We'll be right back with more right after this break. Stick around. At FaithFi, we believe that money is a tool to advance God's kingdom. When you become a FaithFi partner, you help more people discover the freedom of biblical stewardship and the joy of seeing God as their ultimate treasure. As a thank you, you'll get early access to our newest studies and devotionals, our quarterly Faithful Steward magazine, and the Pro version of the FaithFi app.
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To explore a new way of investing that aligns with your values, more information is available at faithfi.com/oneascent. We're so glad you could join us today on Faith and Finance. I'm Rob West, and we're continuing our conversation with author, teacher, and founder of Compass Financial Ministry, Howard Dayton. Many of you will remember Howard as the former host of this radio program. Howard, we're talking today about navigating a crisis, recognizing that the storms of life can come in all shapes and sizes.
What matters is how we respond. And how we lean into the Lord in those seasons.
So let's turn to God's Word. What do we need to understand about God's role and His presence when we find ourselves in the middle of a crisis?
Well, you don't face the crisis alone, Rob. Yes, you have to remember Jesus is with you every step of the way, even though they're painful steps. And really, it boils down to knowing God's role in a crisis. Nothing's more important than knowing who God is—His love, His care, even His control of every event that you're ever going to face—and really, only the Bible reveals the true extent of God's involvement in our challenges. If you or I have an inadequate or even a warped view of God, His purposes, then we won't fully learn from our challenges.
And what can even be worse is that we forfeit His peace, contentment, even joy that the Lord makes available to us during these times. And I love what John says: God is love, simple, to the point. God loves you. He's going to love you throughout your whole life. He remains intimately involved with you as an individual.
And in any crisis, it's just so important to remember God's unfailing love, His faithfulness, because it's so easy to become discouraged and even lose hope in those challenging times. It's it's easy to forget God's love, His care, especially when adversity first strikes, or it goes on and on for what feels like an eternity. I think Jeremiah. You know, sums it up really, really well. He he was in a bad, bad place.
He said, "In in Lamentations three, I remember my affliction, my wanderings, the bitterness of my soul is downcast within me." I mean, he was in a in a very dark place. Yes, but then he remembered the Lord, and he said, "But this I call to mind." Therefore, I have hope, because the Lord's great love were not consumed; for His compassions never fail. They're new every morning. Great is Your faithfulness. What a great reminder for us!
If that's the season we find ourselves in, and Howard, perhaps one of the most difficult things to understand and process is that God has a way of allowing experiences to shape us. Perhaps He's allowing us to go through something that's going to draw us closer to Him, or do a work in our life that, in the bigger picture, is so key to our development. I know you have a profound illustration that perhaps could help us understand that. Yeah, in nature, Rob, there's the sacropia moth, which emerges from its cocoon only after a very long, exhausting struggle to to free itself. And there's a story that one day a young boy discovered the cocoon, carefully slid it open to help the moth escape.
The moth came out. But its wings were shriveled; they just couldn't function. And what the little boy didn't realize was that the moss struggle to liberate itself of the cocoon was essential for developing its wings, its ability to fly. And I know from personal experience that adversity has a part to play in our lives as well. God uses those difficult.
You know, sometimes heartbreaking times to mature us in Christ, and I love what James one tells us: consider it pure joy, my brothers, whenever you face trials of many kinds, because you know that the testing of your faith produces perseverance. Perseverance must finish its work, so that you may be matured, complete, not lacking in anything. And I know Rob from, you know, the five-year journey of walking with my wife Bev when she had, you know, the breast cancer which spread to her bones, which is a very painful type of cancer. That I'm a different person. You know, after she went home, I had the opportunity to check, evaluate, so what happened in my life during those times, and I'm a much More committed follower of Christ, love people more than I did before that occurred.
Surely that can include financial trials too. Can God use financial difficulty to grow us, strengthen our faith, or even correct us at times? How would you think about that, Howard? No question about it. I mean, that's one of the most common challenges that people face.
And and I love what Romans eight tells us. You know, in all things, God works for the good of those who love Him. And again, He was twelve for those whom the Lord loves, He disciplines. All discipline for the moment seems not to be joyful, but sorrowful. Yet to those who have been trained by it, listen to this.
Afterwards, it yields the peaceful fruit of righteousness. You know, Lord doesn't make any mistakes. He knows exactly what He wants you to become, or me, or every one of our listeners, and He knows exactly what's necessary to produce that result in our lives. That's so helpful. We've only got a couple of minutes left, so let's make this practical for someone listening who's in the middle of a financial crisis.
We've talked about God's role, but what is their role? What should their next step be, and what do they need to keep in mind as they walk through it?
Well, I think the number one thing, Rob, is to trust in the Lord. Yeah, you know He loves you, cares for you, He wants the best for you. And then, second thing is to make sure that you know what God says about handling money, and then to do it. I mean, it's it's that simple. You know, knowing is only half of the equation.
You've got to apply what you've learned, and that's so incredibly important to God's people. Yes, to know what God's word says, to apply it, and really one of the Biggest things that you know that people tend to default to in the midst of a crisis is fear, which means that they tend to hold on to things more tightly. They they become less generous. And one of my favorite passages is Acts eleven. The prophet Agabus, through the Spirit, predicted that a severe famine would spread over the entire Roman world.
Disciples listen their response. Each according to his ability, decided to provide help for the brothers living in Judea. Yes, instead of holding on because they knew that famine was going to impact them, first thing they did was grab their checkbook for those living in Judea who knew the Lord. Wow! What a powerful testimony those disciples gave, even in the midst of such a difficult season.
Howard, you are always such an encouragement to us, my friend. We are so grateful that you stopped by today to share this message with us. Thank you, Bob. Love the time with you. Always great advice and great fellowship.
That's Howard Dayton. To learn more about his work, visit compassfinancialministry dot com. Hey, before we head to our break, let me remind you: there's a great wealth of resources waiting for you at faithfi dot com. You'll find more about the FaithFi app, which can help you manage your budget and stay on track. You'll find all of our great content, and you can search for a CKA in your area.
Again, it's all at faithfi dot com. That's faith. Five dot com. All right, we'll be back with your calls right after this. But if you have a question, call right now.
Eight hundred five two five seven thousand. That's eight hundred five two five seven thousand. Stick around. As the leading advocate for the Christian financial industry, Kingdom Advisors serves the public by promoting the integration of a biblical worldview across every aspect of the financial services industry. And we serve a growing network of thousands of Christian financial professionals, equipping and empowering them to carry biblical financial wisdom to their clients, peers, and community.
For more information, visit KingdomAdvisors dot com. That's KingdomAdvisors dot com. 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.
Their debt management program can help you pay off your debt 80 faster while honoring your commitments in full. Take the first step toward financial freedom today. Visit faithfi.com/ccc or call 800. Five five seven one nine eight five. Thanks for joining us today on Faith and Finance for taking your questions.
We'll get to as many as we can in this segment. Eight hundred five two five seven thousand. Let's go out to Texas. Al, how can I help you? Yes, Rob.
Thank you for taking my call. I'm sixty eight, still working full time. Do plan to retire. When I hit age seventy, right now I am under Medicare, and both my wife and myself, and we're hit with what is called Irma by Medicare, and we're spending like fourteen hundred dollars a month. And I know that even when I retire at age seventy, we're still going to be hit with that.
And I was hoping you might be able to give me some ideas as far as tax investments or other type of financial money moves that would help me with Irma. And I can hang up and let you respond.
Okay. Yeah, it's a great question, and I know this Irma, the additional premium that comes on your Medicare Part B and D as a result of having a greater amount of income, is really something a lot of people are looking to get you know out from under. And you know if that's really the goal, ultimately it comes down to your what's called your modified adjusted gross income.
So for Irma, that's your AGI. Your adjusted gross income plus any tax exempt interest and Medicare looks back two years.
So, really, some of the most useful money moves, if you will, would be to maximize pre tax retirement contributions while you're still working.
So, you know, if you're 68 working full time, you could increase traditional 401k or 403b contributions or traditional IRA contributions. That's going to reduce taxable income. Assuming your plan and circumstances allow it, you could be strategic about Roth conversions.
So Roth withdrawals can be, you know, extremely helpful later because qualified withdrawals don't increase your modified adjusted gross income, which is what affects Irma. But the conversion itself is taxable income and can trigger Irma in the corresponding lookback year.
So you don't want to blindly. Convert a large amount, but if you can, you know, do some along the way, it could potentially help down the road. Especially when you have required minimums, you'd also want to manage capital gains.
So avoid unnecessarily realizing large capital gains in, you know, perhaps a taxable brokerage account or with a piece of real estate, because if you're already close to that Irma threshold. You know, realizing a large capital gain is going to throw you over that threshold, and then again trigger that Irma two years later.
So a lot of people just don't factor in the capital gains, and and that is a factor. And so you just need to make sure you understand that if we have a brokerage account, a taxable brokerage account, you can do something called tax loss harvesting, which offsets realized capital gains.
So you. Essentially, sell a stock at a profit, and then you you know with your advisor or tax professional sell a stock at a loss and offset that. To make sure that you don't trigger that Irma, that's a strategy a lot of people use. You also want to watch investment income, so interest and dividends, and again realized gains all increase AGI, and so you want to be tax efficient in your investments. And then I would say once you're eligible at seventy and a half, you can use qualified charitable distributions.
So if you're charitably inclined, a QCD sends money directly from your IRA to eligible ministries or charities without including the qualifying distribution in your income, and you know that can count toward your RMDs when you are seventy three.
So that's particularly useful for controlling your modified adjusted gross income because once you have those required minimums, if you are right up against that Irma threshold, you know you could. Satisfy that RMD through giving, not increase your income at all, and stay below that Irma threshold.
So that's another you know strategy you can use as well. And then lastly, I would say there is something called a an Irma appeal.
So this is particularly relevant, you know, to a sixty eight year old who's retiring at seventy because if Medicare is using your higher working income after you retire. Work stoppage is a qualifying life changing event, and so you can ask Social Security to use your lower income now that you're retired through a particular form. It's SSA 44, rather than simply waiting for the two year look back to catch up.
Now, obviously, if they go ahead and adjust it down because you say I have a qualifying event, work stoppage, and your income was still elevated, well, they're going to get you know they're going to get that. From you eventually, but it is a great strategy for somebody who's transitioning from you know paid work to retirement because it could you know quickly adjust your your Medicare premiums and not require you to wait for them to see that two years later.
So anyway, I think at the end of the day, you know, I wouldn't necessarily contort your finances today because your salary is producing Irma. But if you retire at seventy and your income drops significantly, you may be able to. Have the surcharge recalculated based on the retirement-related income reduction.
So those are a few ideas. Hopefully that helps you as as you kind of think through you know the various options there. And and I appreciate your call. Hey, we're going to finish out today with Guy in Missouri. And Guy, understand you have a testimony of God's faithfulness in your life.
Tell us about it. Yes, this is probably the same story that a lot of your listeners have. But over the years, I've been a Christ follower for about forty years, and we always make a point to give whenever we received income.
Sometimes it would have been only ten percent.
Sometimes it would have been more. Occasionally, it might have been less. But we always tried to give. And over the years, there were times when we didn't have money for other things, and I wondered how are we going to have money for retirement and all that. But in the last couple years, God provided a way that we never thought possible, that has proved to be His faithfulness to us.
That we now have a an income stream that we never dreamed we would have.
So. Just wanted to share God's faithfulness in that regard for upon giving. You know it's amazing, guy, and I have heard this story a lot, and it's because it's just the way God's economy works. He's not a; it's not a cosmic vending machine. This is not about a prosperity gospel, but this is just about God's faithfulness, which can come in any form.
But when we make God our ultimate treasure and we hold His resources loosely and we give it generously, it's amazing to see what happens. And I think that's just the way God has, you know, wired us and. That's also just the way his economy works. Cranking through your calculator doesn't make sense, and yet you can't outgive God. And the joy that follows is incredible.
So, thanks, sir, for sharing your story today. I'm confident it's been encouragement to others. Lord bless you, folks. Thanks for being along with us. We'll look for you tomorrow.
Big thanks to my team today: Jim, Taylor, Devin, Sandy, and everybody here at Faith Five. Couldn't do it without them. We'll see you next time. Bye bye. Faith in finance is provided by Faith by and listeners like you.
