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3 Money Moves of Solomon

Faith And Finance / Rob West
The Truth Network Radio
June 6, 2024 5:03 pm

3 Money Moves of Solomon

Faith And Finance / Rob West

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June 6, 2024 5:03 pm

Many think that Solomon was the wisest man who ever lived and much of his God-given wisdom is about managing money. On today's Faith & Finance Live, John Putnam will join Rob West to talk about the 3 Money Moves of Solomon—so you can be just as wise. Then, Rob will answer your calls on various financial topics. 

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Many think Solomon was the 23,000 and you can call that 24-7. This is Faith & Finance Live, biblical wisdom for your financial journey. Well, our guest today is my friend John Putnam. John is a strategic stewardship coach, a certified Kingdom advisor, and founder of Money Made Faithful, a financial discipleship marketplace ministry. John, great to have you back. Rob, always good to be with you. John, Scripture makes it clear that King Solomon was wise, but I think we sometimes forget just how wise he truly was. Would you agree with that?

No question, Rob. I mean, Solomon prayed for wisdom, and in 1 Kings 4, it talks about what he actually received. It was incredible. And God gave Solomon wisdom and understanding beyond measure and breadth of mind like the sand on the seashore. So Solomon's wisdom surpassed the wisdom of all the people of the east and all the wisdom of Egypt, for he was wiser than all other men. Yeah, I wouldn't want to match wits with King Solomon, but getting to the topic at hand today, John, what financial moves, money moves did Solomon have in mind?

Yes, sir. Hey, Solomon didn't have our shortcomings, Rob. He was a smart, wise guy. The first move is to be disciplined. I love Proverbs 13 11 that reads, wealth gained hastily will dwindle, but whoever gathers little by little will increase it. Rob, so often we hear the word discipline and images come to mind of doing the same thing over and over again and how it gets boring and mundane. But what it really does in this context is guide you to master the discipline of making little wise money choices that compound over long periods of time that lead to much larger long-term stewardship success.

And there is no doubt that is a key to financial success. All right, John, what about move number two? It's be denied, Rob. This one is not real popular to deny yourself.

I mean, seriously, who wants to do that with all the conveniences around us as well? It's so easy to fall into the mindset of, I want what I want and I want it now. But one of the core behaviors around wise and faithful money stewardship is about the practice of denying yourself today. Proverbs 21 20 reads, precious treasure and oil are in a wise man's dwelling, but a foolish man devours it.

Rob, when you deny yourself, not only does it help you to be better prepared for tomorrow for the curve balls and what life throws at you, but it also protects you today and helps you be more present today and available and focused on God and the ministry opportunities that he will put in your path. Oh, that's so true, John. All right, so we're to be disciplined, we're to be denied, and now on to King Solomon's final money move. Yeah, such good wisdom here to be determined. Proverbs 10 four or five reads, a slack hand causes poverty, but the hand of the diligent makes rich. He who gathers in summer is a prudent son, but he who sleeps in harvest is the son who brings shame. Rob, I've said many times in my coaching, you will never drift to a destination of your own choosing.

That's right. Each of us, we need a vision for where we're going. We need a mission for how we're going to get there. And we need the values to define who you want to be on the journey. When you create that level of determination and focus, Rob, you just naturally position yourself for wise and faithful stewardship that not only will impact your life, but will send ripple effects through eternity, brother. John, this is so good. We're about out of time.

Tie a bow on this for us. Yeah, look, the beauty of these moves, they apply to so much more than our money and you never age out of these moves, Rob. They're as true when you're 20 and 30 as they are when you're 60 and 70. And the best part about traits of wisdom is that it ages very, very well.

So keep sharing it with others. Wow, John, we just scratched the surface. We're going to have to have you back real soon, but really appreciate you stopping by today.

Great being with you, Rob. That's John Putnam, folks, founder of Money Made Faithful. Now, if you want to find out more about Money Made Faithful, just go to their website, Money Made Faithful dot com. Tune into the weekly Money Made Faithful podcast or follow at Money Made Faithful on Instagram and Facebook.

All right. Your calls are next. The number 800-525-7000.

That's 800-525-7000. I'm Rob West and this is Faith and Finance Live, biblical wisdom for your financial journey. Stick around. The opinions offered during this program represent the personal or professional opinions of the participants given for informational purposes only.

Any information provided is not intended to replace advice from a financial, medical, legal or other professional who understands your specific situation. Great to have you with us today on Faith and Finance Live. I'm Rob West. Here in just a moment, we'll begin taking your calls and questions today. The number to call is 800-525-7000.

Again that's 800-525-7000. The calls are coming in quickly, but this moment we've still got room for you. We'd love to hear your question today. You know, I love where we started today with my friend John Putnam talking about the wisdom of Solomon, discipline, denial and determined are three big ideas there. Discipline is so important. You know, if we're going to have margin in our financial lives, which is the key to every financial success, we have to have discipline. Denial is really about self-control. And here's one of the truths, the principles that my mentor and the popular author Ron Blue says, he said this, well, this is as long as I've known him, he said, among other things, financial maturity is being able to give up today's desires for future benefits.

Boy, isn't that true. Financial maturity is being able to give up today's desires for future benefits. And being determined is really, I think, you know, embedded in that is this idea that we need to be good planners, that the longer term our perspective, the better the decision we're going to make today. And so as we employ and implement these principles, this wisdom from King Solomon found in the Old Testament, may we bring that into our financial lives, recognizing that as we work out our money decisions, boy, there are real spiritual issues and values, belief systems at play underneath those decisions that have so much to do with ultimately the decisions we will make. And that's why money issues are hard issues. And Jesus said, you cannot serve God and money. And he said, where your treasure is there, your heart will be also. And he said that what's going to choke out the word from bearing a 30, 60, 100 full return in your life is the deceitfulness of riches and the desires of other things and the cares of this world. So we can't get caught up in the comparison trap. Well, I'll stop there before I start preaching today, but I hope that's an encouragement to you. I know it is to me.

Easier said than done. But together, and that's why we do this program every day, together we can counteract the messages of this world and really lean into God's word, knowing that God is our ultimate treasure and that if we maintain an eternal perspective and give generously and see our role as stewards, wow, money can become a powerful tool for good. All right, we're going to begin to take your calls today here on Moody Radio. We've got lines open. We're ready for you.

Eight hundred five, two, five, seven thousand is the number to call. I've got an all star team supporting me today and we're ready to go. Let's dive in.

Geneva, Illinois. Hi, Jill. Go ahead. Yes.

Hi. I have a question. The difference between an irrevocable and revocable trust and my parents, I believe, have a revocable one, but I just wanted to clarify that. They are 87 and they are both each other's trustee on that trust. What are the pros and cons of them transferring that to my brother, who would be their executor or the main, you know, person on the trust when they pass?

Yes. Well, typically people will have revocable trusts as opposed to irrevocable trusts. And the reason is, first of all, the main benefit of a revocable trust is that it's easily amended. And so the grand tour, which is your parents who set it up, can quickly and easily move assets in and out of the trust, retitling them, changing the structure of the trust if decisions change over time about how they want their assets distributed.

So that's the main difference. An irrevocable trust cannot be changed. So it can't be canceled without all the approval of all the beneficiaries and the grand tour.

And it makes it really difficult to do. And the only reason why somebody would do a revocable or an irrevocable trust, which cannot be changed because the assets are no longer controlled or owned by the grand tour, is because they may want to be minimizing estate taxes. So that's the primary issue related to irrevocable trusts. Now, estate taxes, at least today, don't kick in at a federal level until you get to an estate more than 13 million dollars.

And even after the Tax Cuts and Jobs Act expires at the end of 25, the Trump tax cuts, which they're scheduled to do unless he's reelected or something else changes. And then estates under five million dollars will not have any estate taxes. So for most folks, you know, they don't need an irrevocable trust to minimize estate taxes. And so a revocable trust giving them more flexibility is usually what they do.

It's also less money to set up. The other benefits of a trust, it allows for the assets to be passed outside of probate. So it doesn't go through the probate court. It preserves privacy.

So it's not a part of the public record. And it can manage the assets in the trust prior to death in the event of incapacitation. So that's where, you know, with a will, it only goes into effect at death. You know, with a trust, if they're incapacitated, even while living, the trustee could step in and manage the assets.

Now, the only other distinction is shielding from creditors. A revocable trust does not offer that shielding, whereas in some cases, an irrevocable trust does provide creditor asset protection. In terms of your brother, you know, typically what would happen is your parents would each be trustees and then the successor trustee, if either of them are not available, either they pass away or they're incapacitated, would then be the one to step in and take charge. The role of the trustee is to manage and distribute the assets of the trust according to the wishes of the grantor, which is outlined in the trust document. So trustees actually have a legal authority and a fiduciary duty to act in the best interest of the beneficiaries. And so they manage the finances, they manage the assets, they provide a communication role, keeping in touch with the beneficiaries.

So they're the equivalent of the executor of an estate, you just in the case of a trust, you call it a trustee. But I've thrown a lot at you there. Let me know what questions you have. Yes. No, I appreciate that. So if they become incapacitated, let's say, you know, they are not able to make those decisions because my brother is a successor trustee, then he would have that power without going to court for that power? Yes. Yes, exactly right.

So a successor trustee is the person that steps in immediately and manages a living trust's property after the original trustee dies or becomes incapacitated. OK. All right. Great. Thank you so much. I really appreciate it. You're welcome. Let me just say, if you do have specific questions related to your trust, always seek legal counsel.

But generally, that's how all of this works. Thanks for calling, Jill. God bless you. We appreciate you being on the program today. Well, folks, we're already up to our first break here.

It'll be a quick one, though. And then when we come back, Linda, we'll tackle your question about long-term care. And I know Tyler's in St. Louis wanting to talk about buying an investment property or a first home.

And then we'll head all the way out to Spokane, Washington, talk to Leo. We've got two lines open, it looks like, 800-525-7000. Hey, let me mention to you the end of the fiscal year at FaithFi is coming up June the 30th. So if you count on this ministry, this is a really important time for us to hear from you with a gift of any size, big or small, right now, Just click Give.

Just click Give. We'll be right back with much more. Stay with us. Well, thanks for joining us today on Faith in Finance Live here on Moody Radio. I'm Rob West. Looks like all the lines are full, so I won't give the number, we'll just head right back to the phones.

Let's go to Chicago. Hi, Linda. Go right ahead. Hi, Rob. I enjoyed the program. Well, I'm so glad.

How can I help you today? Yes. I'm calling about your views, what's your opinion on long-term care insurance versus long-term care annuity. And the reason why I'm asking, because I've been looking into long-term care insurance for a while, I'm 66 years old, and it's my opinion that it's very expensive. And I've been told if you can't, if you don't think you'll be able to pay it on a long-term basis, there's no sense of starting it if you can't pay it because you lose the money. So I've looked into annuities also, so I want to know what is your opinion on long-term care annuity versus long-term care insurance.

Yeah, that's a great question. You know, I would agree with your latter point there about long-term care insurance. It has become very expensive, and if you're stretching to afford it today, you're likely not going to be able to afford it in the future because we've seen some pretty rapid increases and in some cases significant, even though they can't happen on an individual basis, it has to happen in the aggregate based on all the policies in a particular state. Because health care costs have been going up so dramatically, the premiums on these long-term care insurance policies have been going up. And if at some point down the road you can no longer afford it because the premiums have increased too dramatically, then you're right, it's of no value to you.

And so you lose it. Now at that point, there are some options. Typically you might take a reduction in benefits.

Maybe you extend the waiting period. So if it were kicked in after 60 days, maybe now it's 180 days, and if you're getting X dollars a day, maybe you drop that and it provides a lower benefit. And so even if it doesn't cover everything, you get some offset of the cost. Now a long-term care annuity is a special type of annuity designed to help people pay for the costs associated with long-term care. And so people typically buy them to protect their retirement savings since, you know, to your point, long-term care can be costly and they work in various ways, but most commonly the insurer pays a fixed amount to you each month. The amount that you're paid each month though is based on how much you paid into the annuity. So this means depending on how much care you require, your long-term care annuity may not be able to cover the full amount of your care.

And so I think, you know, that's just what you have to understand. You know, the drawbacks to the annuity are they typically require a large upfront payment that people can't afford. And the annuity payments are considered taxable income if they aren't used to pay for costs associated with long-term care. But they are both a great way if you can afford them to help finance the cost of long-term care. And, you know, 70% of Americans 65 and older will need some form of long-term care for some period of time.

Another option would be to look at the short-term care because what we find is that most folks when they need that type of assistance because they can't perform, you know, the certain number of daily activities of daily living, their need for that type of skilled care doesn't last very long. And so that can kind of cover the early days of, you know, what is needed and, you know, that may be enough. So yes, I like annuities, but typically, you know, because they require that upfront payment, usually that's the, you know, the drawback for most people. Does that make sense though?

It does. And when you say, what's average, when you say upfront payment, what's average, do you know what an average is for my area, for Chicago, Illinois? It really just depends on how much coverage, you know, you're looking for, you know, when you start, need to start to collect. What do you have in the way of retirement assets today? Okay.

I have a total, maybe let's say 500,000. Okay. Yeah. Okay.

Yeah. You know, so you're certainly in the ballpark there of, you know, where somebody would benefit from long-term care insurance, because I generally say if you have assets between, you know, 200,000 and 2 million, you know, that's probably where you want it because you could run through that and spend it, you know, down or away completely, but you don't quite have enough to self-insure just given, you know, how much it could end up costing you. Here's what I would do. Do you have an advisor who could kind of help you work through this and do some planning for you? Yes, I do.

Yes, I did. I met with my advisor last week, but I'm going, I wanted to have another opinion also. I'm meeting with him today. Okay.

Good. Well, I would, I would look at that. The other option is, you know, you can get life insurance with a long-term care rider. And so that way your premiums aren't wasted if you ever need long-term care. So that would be another option to ask him about, which is what's called a hybrid policy and the rates are guaranteed to remain the same unlike the traditional long-term care insurance policies. So I might ask him to show you a long-term care insurance policy illustration, a long-term care annuity and ask him how much you'd have to put in on the front end. And then the third option would be a hybrid policy, a long-term or a life insurance policy with a long-term care rider. A fourth option could be a reverse mortgage, which if you own your home and you needed, you know, care and you were going to hang on to the home, in particular, if you needed in-home care, you could get a reverse mortgage and, you know, pull the equity out of the house to fund it. I mean, as kind of a last resort. So I think there are options. The key is just based on your situation, Linda, kind of working through each of these with your advisor.

But I'm not opposed to the annuity of the long-term care annuity for the reasons you mentioned if you can make the numbers work. Hey, thanks for calling today. We appreciate you being on the program.

May the Lord bless you. Well, folks, we're just halfway through the program. We've got a lot more to cover. We'll head to St. Louis after this break and then Chattanooga. I know there's a lot of lines holding as well. So stay right there.

I'll try to move a little quicker when we get back and see if I can get to as many questions as we certainly can. You know, folks, as we think about managing God's money, the big idea first, lordship. God owns it all. The second, stewardship. We're managers of God's resources. I think close behind that is the idea of generosity. We're to give generously. It breaks the grip of money over our lives. Perhaps following that contentment, we're to recognize that we're to live within God's provision.

Some big ideas as it comes to God's way of managing money. Stay with us. Great to have you with us today on Faith and Finance Live. I'm Rob West. Let's head right back to the phones. We've got a lot of questions coming up here. We'll go to St. Louis, Missouri. Hi, Tyler.

How can I help? Hey, Rob. Thank you for your call. I really appreciate your time. Absolutely.

Yeah. So, just real quick, so me and my wife have a, she actually has a Franklin Templeton Fidelity account with just a little over 100,000 grand in it. And we are deciding, trying to decide whether or not we should use that money to buy our first home or to use it as, to get an investment property to fix and flip and try to make a profit off of it. Because right now we're not currently, we have a little bit of rent.

We currently live with my parents right now, so money's not an issue for us right now, but we're just trying to be faithful with what we got and just kind of want you to see if you could weigh in on that and see where we should kind of go with that. Yeah, I appreciate it. I mean, I assume you don't have any experience in the renovation and flipping, is that right? So I'm actually a carpenter full-time, so I do have a lot of experience with like construction. And then I work a second job, it's a sales job for a real estate investment company.

So that's what I'm planning on getting into eventually. But we're just, we have a little bit of money aside that we wanted to use either for a first home or an investment property. So we're kind of in a pickle with making a decision on that. Yeah.

No, I can certainly understand that. What do you have that you could use toward a down payment? So in the account, we have roughly under, I think it was like $103,000. We weren't going to use all of that for a down payment. We were kind of hoping to maybe go no more than $60,000 for a down payment.

$60,000. All right. So the rest of that would be considered your emergency fund.

Is that right? Yeah. Okay. And if you were to buy a fixer-upper, have you started looking around? I mean, do you have a sense of what you'd need to spend to get the kind of place you're looking for to begin doing some work?

Yeah. So I actually, my boss who owns the real estate investment company, he can help me get fine deals off market. So we're trying to hopefully go off market rather than on market to try to save some money there too with closing costs and everything. But anything within like $50,000 was kind of the idea we were hoping to shoot for, for the price of a fixer-upper.

Okay. So you're looking to pay cash for something? Did you say $50,000? Yeah. If anything under $50,000 would probably be the ballpark range.

That way we could have enough money to be able to use for renovations and stuff. Yeah. I mean, what's out there, Tyler, for $50,000 or less?

I mean, do you have some examples you've looked at? Yeah. So I live in Franklin County, Missouri. It's about a little like an hour outside of St. Louis. So it's pretty rural. And there's a lot of like this beat up homes that are, there's a lot of them under $50,000 actually, a lot of two bed, you know, one bath or three bed, one bath.

They're kind of older and they probably need a lot of work done, but they have. Yeah. And then what would you do? Would you take out a loan, a cash out loan to renovate it or what are you thinking? Yeah.

So that's what I was thinking was using the Fidelity account money to buy the house and then using the loan to fix it was kind of the idea. Okay. And how much time do you have? I mean, basically you're talking about starting a business here, right?

Kind of in a way, yeah. I know I work five-eighths right now as a carpenter and then I pretty much just go straight home and make cold calls for the investment company and stuff like that until I get trained further into sales. Okay. And that usually ends anywhere from like five o'clock. Yeah. And so you've got a full time, I mean, when you put it both together, are you working 40 hours a week or more? Probably more. Yeah. Yeah. Okay. So more like 50, 60. Right.

Yeah. I think it just sounds like to me, I mean, even though you've got the skills and I like real estate a lot, don't get me wrong and I agree you're in a unique position right now where you're living with somebody else and so you keep an expenses low. How did your wife feel about all this? I mean, what is her energy level around getting into a place of your own or is she just as excited about this opportunity? She's very excited about it either way, kind of whatever I decide she's kind of cool with.

She knows that I've been doing a lot of research and stuff and finding out a lot about this stuff. Actually, the boss that I have for the real estate investment company is flipping a house right now. So he would kind of partner with me on it and show me the ropes a little bit so I wouldn't be going into it alone on the business side of things. But yeah, in the real estate investing, I planned on doing full-time eventually when timing's right, so I could always wait to start flipping a house when I do that full-time because then I won't be making hourly wages. I won't have to work 40 hours a week and so on. That was kind of like a decision if I should just wait to invest in real estate whenever I do that job full-time. And last question, where are you guys living right now? We are living in Washington, Missouri right now with my parents.

With your parents. Okay. Yeah, so here's my take on it.

I think this is going to be great, but not right now. I mean, obviously it's hard for me to give you, I can't give you a definitive decision. You guys are going to have to seek the Lord on this and I appreciate your seeking counsel.

And so my counsel would be, it's just too early. I love the fact that you all have been able to stay lean and mean living with mom and dad. I love the fact you put up $103,000. I love that she's saying, hey honey, if this is something you want to do, go get them and I'll support you. That's all great and it sounds like you have a real passion for this. It sounds like you're taking the right steps, working hard, positioning yourself to get into a career that you ultimately want to be in, that you think you have a skill set for, you have some interest in, and you're kind of working your way up. I think this will probably be a big part of your future.

It's just probably not today. So if it were me, I would say, let's take that money we've been kind of building up. Let's get into our own place that we can kind of start a life on our own.

Maybe you do some work to build, fix that up and then you guys sell it and you move to your next place. But I would say, my concern is that you're going to get out of balance here, especially as a young married guy. I mean, you've already got two jobs, you've got a wife at home and that's great that she's being supportive, but I mean, you need to have time for her and you guys and there's going to be plenty of time for you to hustle down the road, but it just feels like it's too early and it's going to take too much time away from your family and your relationship with the Lord and investing in your marriage in these early days. And I feel like you guys getting out on your own is the best next step. And just know that you're not wasting those skills that God's given you. There'll be plenty of time within the right balance and rhythm of work and rest and family and your walk with Jesus to be able to do some of that kind of stuff.

I just don't get the sense that it's right now either financially or time-wise or where you are in your career or even perhaps more, you know, just as important, the fact that you guys are still living at home with mom and dad. Does that all that make sense though? Yeah, absolutely, I really appreciate that. I know I've kind of seeked a lot of counsel from different Christian men at my church and everything, and they've all kind of said roughly about the same thing that you said. And you know, I kind of think that the Lord's been showing me pretty clearly the answer to my question. So I really appreciate you.

Absolutely. Man, I'm thrilled. I think there's no doubt in my mind God's going to do some amazing things with you and your wife. But focus on getting out on your own right now, taking that money that you worked hard to save up, and you guys find a place that's a starter home that doesn't get you overextended and see what God has next for you.

And I suspect there'll be some real estate investments at some point in the future. Hey, God bless you, Tyler. Thanks for calling today. Back with a few more calls right after this. Stay with us.

Hey, glad to have you with us today on Faith and Finance Live. I'm Rob West. Let's head right back to the phones.

Chattanooga, Tennessee. Hunter, thanks for your patience. Go ahead. Hey, Rob. Thank you so much for having me, man. Yeah, sure.

So yeah. So 2016, 17, and 18, before I came to Faith in Christ, I had a small woodworking business, and I never did taxes on any of that. I don't know, you know, I know I owe taxes. I just don't know to who, you know, city, county, state, federal, obviously. I've got the numbers on what I grossed every single year. Few questions I've got. What taxes do I owe?

Who do I talk to? And then without having any receipts from any of my raw materials, is there any way to write off any of that stuff? Like is there like a base amount that I could write off for each year?

What am I looking at? Yeah. Yeah. I mean, I think the starting point is just to, you know, complete the state and the federal taxes.

So you're there in Tennessee. So I'd get a CPA and I mean, this is fairly simple to do. And basically they'll, you know, they probably won't be able to e-file it, but they'll be able to, you know, fill it out and print it out and file that paper return and give you all the information that you need to file those back taxes. You'll owe some penalties and interest, but you know, if you can't write the check for it then, you know, they'll get you on a payment plan. And I would find a CPA that, you know, specializes in what are called offers and compromises. And you know, depending on your financial situation currently, you know, you may be able to end up, you know, getting a compromise for less than you owe.

If you have the financial means to pay it in full, either right now or over time through a payment plan, then you'll probably end up paying the full amount plus the penalties and interest. But that would be kind of the starting point. And then that CPA can also help you chase down whether there's anything else. But those are the big items.

It's just going to be the city and the state, I mean the state and the federal taxes. Do you still operate this business or have you shut it down? No. Yeah, no, I shut it down. I looked over everything and early 2018 was the last time I did anything.

Okay. And do you still have an active corporation in the state of Tennessee? Yes. So that's how a lot of this is funny, how the Lord kind of brought it back to my memory is I started getting letters telling me that I still owed money on my small business license. So when I went to close that, they were like, well, you never paid taxes on this.

And so that's where I started chasing all this down. Yeah. Okay. Yeah. So the CPA can help you with that.

If you've got somebody there, that's great. If not, I've got somebody that specializes in this kind of thing with back taxes and offers and compromises. And you're welcome to give your information to our producer here today, Tahira, and we can get somebody in touch with you.

But I think the key is kind of start with the federal and the state and then that tax professional can help you chase down anything else you owe. And what you want to do is, you know, is it an S corp? Is that what you have?

I have no idea what that is. Okay. All right. Yeah. So did you, but you opened a corporation with the state of Tennessee? Yeah. Did you?

Hamilton County, Tennessee. Gotcha. Okay.

Yeah. So you'll just, once all those taxes are filed, you'll want to shut that down and, you know, kind of close that down so they don't continue to ping you for fees for the business since you're not operating it anymore. And if you owe anything at that point, then that'll become clear as well.

But you know, I think the federal and state are the starting place. So hang on the line. Our team will get your information if you want us to put you in touch with somebody, but you can get this done. It won't be that painful.

And you know, even if you don't have the funds, you can get on a payment plan to get it taken care of. Thanks for your call, Hunter. We appreciate it. Thank you.

Columbia, South Carolina. Hi, Susan. How can I help?

Hi. I was wondering how to leave money to a child that's irresponsible. They have mental health issues.

I don't know if it's a will, a trust, or there's some other avenue I should search. Sure. Yeah. So the way you would typically want to do that is through a special needs trust. And basically, you know, assuming there are, you know, so did you say there are cognitive issues or what is it in particular? It's mental health dealing with issues there.

Okay. So he may or may not qualify for a special needs trust. But essentially, because those are usually, you know, reserved for folks that have particular health-related issues or disabilities. And so if not, then a trust would be what you're looking for, a revocable trust. So the benefit of the trust is that it could be distributed to the heir at certain ages or even milestones. And so that could be done, you know, for instance, a trust could say when the heir graduates, the beneficiary graduates from college or, you know, give X amount of 20 and X amount of 25 and X amount of 30, you know, so there are ways to essentially set that up to distribute that over time at certain triggering events. Do you think there's an ability kind of at this point to kind of lean into that and begin to try to help foster some money management skills in the meantime?

Or kind of what is the current status of that? Well, they're totally dependent on me right now, but we are working on that. Okay. Yeah. But it's slow going. Yeah.

No, I certainly get that. So I think the next step, Susan, is to get with an estate planning attorney. And it sounds like just a revocable trust would be what you'd want. And that way, you would have some confidence to know that, okay, if something happened to me and the Lord called me home, that I've got provisions in place, so X amount of dollars doesn't just drop into the child's lap, whether it's a minor or adult, when they're not ready for it, which could propel them in the wrong direction, because money provides fuel. And if they're headed in a wrong direction, either in terms of financial, spiritual, or otherwise maturity, it could accelerate them away from the Lord and into poor decision making. And that's where the trust would allow you to know that, okay, I've thought through this, and it's only going to be distributed over time. It could even offer a modest income every month for the rest of his or her life.

So if you don't have an attorney, a certified kingdom advisor there in Columbia could make a referral to you to a godly estate attorney, and they can help you get all of that in place. We appreciate your call today. Thanks for being on the program. Let's head out to Spokane. Hi, Leo. Go ahead. Yeah. Hello. Hi.

How can I help you? Yeah. I have a couple questions about my home. If we were to sell it, and we've got a large amount of equity built up, but we want to tithe on that. We see it as an increase, like an investment.

But to do that, could we subtract improvements we made over time that increase the value of the home? Yeah. Yeah.

Yeah, absolutely. So the idea behind the tithe, Leo, is that it's on the increase, which you correctly pointed out. So the question is, what is my increase? And so with an asset, and a home would certainly fall into that category, you would take the selling price, because you haven't realized anything while you're still living in it. It's a paper gain, and that can change with time.

It can go up or down. But once you sell it, you realize it, and so then you take the selling price, you subtract the original purchase price, and you would subtract, you know, typically not maintenance, but improvements that enhance the value, and you mentioned that as well. You would subtract that as well. And then what you're left with is truly your increase. And so if you wanted to give a tithe off of that increase to the Lord, that would be the amount that you do it on.

Okay. The other question, if we left the home to my daughter, how could we encourage her to tithe on that gift? Is there a way to do it in the will, perhaps? No, I think the only way to really do that would be to instill that understanding of giving and generosity into her prior to your passing, and then decide as your last stewardship decision in the wealth transfer process, what you wanted to give, you know, to ministry or charity, and what you want to give to your heirs. But once you've, you know, passed it to them, they're now the next steward.

And you know, hopefully not only are they chosen, but they're prepared to do that. But ultimately trying to control that, I think with whatever portion that you give to them after you're gone, is difficult and I think ill-advised. What I would do is try to focus on what can we do now to instill these values in her, and perhaps that's, you know, taking a portion of your estate right now and giving it to let's say what's called a donor advised fund, where maybe you get her involved in giving it away and allow her to experience the joy of giving and generosity. And then think about, okay, with whatever God has entrusted to us, we don't necessarily automatically have to leave all that to the kids. And so the Lord may lead us to give a portion of it away to God's kingdom, you know, aligned with our passions and what's on the heart of God in Scripture, and then a portion to her.

But you know, I don't think you can force a tithe on the portion that she would receive as an inheritance after your life. I see. Okay.

Yeah. All right. Thank you very much.

Okay, Leo. God bless you. Thank you for calling today. We appreciate you being on the program.

Unfortunately, we're out of time. Kevin in Washington State, I know you've been holding there very patiently for a while. Why don't you hang on the line and let me see if I can tackle your question right after the program.

I'll stick around for another minute because I know you've been waiting there. And for those of you holding that didn't get on today, we would love for you to call back and be on a future broadcast. You know, as I think about all the questions that came into the broadcast today, I'm just reminded of this responsibility, this opportunity we have to be found faithful as money managers of the King of Kings resources. That's a high calling and something we ought to take seriously. And I know each of you do, and just like me, we're not going to get it right all the time, but we're just going to do our best, seek wise counsel, study the scriptures, and just try to be found faithful and honor the Lord with what he's given us because, wow, he has given us so much before the first dollar, we have an abundance. Let me say a big thanks to my team today. I certainly couldn't do this without them. Lisa, so thankful for you today handling our phones, Lynn, sitting in the broadcast studio today as well as Tahira and Dan pushing all the buttons, making it happen. Also providing great research today, Jim Henry, faith that finance lives a partnership between Mooney radio and faith. We'll see you next time.
Whisper: medium.en / 2024-06-06 22:34:54 / 2024-06-06 22:52:35 / 18

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