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What to Do with a Surplus

Faith And Finance / Rob West
The Truth Network Radio
June 17, 2024 6:22 pm

What to Do with a Surplus

Faith And Finance / Rob West

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June 17, 2024 6:22 pm

You’ve been a careful steward, working hard, saving your money, and spending wisely. You may have even reached a point where you can live comfortably and afford the things you need. So, now what? On today's Faith & Finance Live, host Rob West will talk about having a surplus—from a biblical perspective. Then he’ll answer your questions on various financial topics. 

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You've been a careful steward, working hard, saving your money and spending wisely.

Now what? I am Rob West. Being able to live comfortably and afford the things you need seems like a worthy goal. Today we'll look at having a surplus from a biblical perspective, and then we'll take your calls at 800-525-7000.

That's 800-525-7000. This is Faith and Finance Live, biblical wisdom for your financial journey. Well, maybe we don't do this enough. Speak directly to the faithful listeners who already follow God's principles and their finances. You've been living with integrity and making wise choices with your money for years and years.

Well, we're talking to you today. First of all, well done. Financial faithfulness is a big deal. It takes sacrifice, commitment and patience. You've paid off debts, worked hard at one or more jobs, invested wisely and built your savings. More importantly, you understand that everything belongs to God. Your responsibility is to faithfully and humbly take care of what He's provided. As a Christian, you know the future is in God's hands. Markets rise and fall, and your economic realities may change, but God is always faithful. You also know that following biblical financial principles is the wise thing to do, and now you find yourself with a surplus.

What's next? Now I can hear you thinking, I don't have a surplus. I'm just getting to where I can keep my head above water financially.

I get that. Let me clarify what we mean by a surplus. In effect, a surplus is any money God has provided above what you need to live.

The late Larry Burkett calls it prosperity. He goes on to say, God is not against prosperity. It's one of His blessings to those who love and obey Him. For one person, a surplus of money represents a trust from God that can be used for current and future needs.

For another, it represents a trap of Satan to lead him out of God's path. Scripture warns us that having a surplus is more dangerous than having a need. If your surplus leads you into desire for more, then it's become a spiritual trap for you.

1 Timothy 6, 9, and 10 explains it this way. Those who desire to be rich fall into temptation, into a snare, into many senseless and harmful desires that plunge people into ruin and destruction. You might think it's possible to focus on getting and keeping wealth and be devoted to God at the same time, but Jesus tells us in Matthew 6, 24, no one can serve two masters, for either he will hate the one and love the other, or he will be devoted to the one and despise the other.

You cannot serve God and money. If it's too dangerous to focus on getting rich and impossible to serve God and money at the same time, what's the godly alternative? Well, according to Jesus in Luke 12, 21, we're supposed to be rich toward God instead. When Jesus is what you value most, you're placing your trust in treasure that's eternal and imperishable. God's abundance offers so much more than worldly riches do, including power for living and peace in your heart. So what's God's perspective on financial surpluses? Well, in 1 Samuel 16, 7, we learn that the Lord sees not as man sees. Man looks on the outward appearance, but the Lord looks on the heart.

Two things come to mind with regard to how we manage a surplus. First, we are to be imitators of Christ. Ephesians 5, 1 and 2 says, Follow God's example, therefore as dearly loved children, and walk in the way of love, just as Christ loved us and gave himself up for us as a fragrant offering and a sacrifice to God. How we use our surplus should reflect the God we serve. God is a generous Father, faithful and sacrificial in his dealings with us.

We must be that way toward others. Second, we must be in the world but not of it, according to John 17, 11 and 16, in the way we handle our surplus. In the Sermon on the Mount, Jesus explains that God's power doesn't follow worldly priorities. True power is displayed through self-giving love. Through the power of generosity, we can participate in God's work in the world. When God blesses you with a surplus, it's important to see it for what it is, a physical blessing with a spiritual purpose. According to Larry Burkett, the important thing is to have a plan for the use of potential surpluses, planning before the money becomes available. Here's a final word from 1 Timothy 6, 17 through 19, As for the rich in this present age, charge them not to be haughty, nor to set their hopes on the uncertainty of riches, but on God, who richly provides us with everything to enjoy.

They are to do good, to be rich in good works, to be generous and ready to share, thus storing up treasure for themselves as a good foundation for the future, so that they may take hold of that which is truly life. Wow, that's powerful. All right, your calls are next, 800-525-7000. That's 800-525-7000. We'll be right back. 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. Well, it's great to be with you this afternoon on Faith and Finance Live. I'm Rob West and it's time to take your phone calls today.

We'd love to know what you're thinking about in your financial life so we can help you process it through the lens of Scripture. You can call right now with lines open. The number 800-525-7000. That's 800-525-7000.

You can call right now. You know, before we dive in today, as we think about dealing with financial matters through the lens of Scripture, I think we have to start with some big rocks, if you will. You remember that illustration with the jar and the sand and the rocks?

You have to put the big rocks in first or you'll never get the sand in. Those big rocks, as it relates to biblical money management, are first lordship. We have to surrender to the fact that God owns everything. Psalm 24-1 is clear, the earth is the Lord's and everything in it, the world and all who live within it. That second rock then is stewardship, using God's resources to fulfill his purposes.

Genesis 2-15, among other verses, remind us that the Lord God took the man and put him in the Garden of Eden to work and care for it. So we're to take God's creation and be productive, to order it, to improve upon it, and that is our responsibility. Well, that includes managing the physical resources that God entrusts to us. And then perhaps that third rock, among others, would be generosity. That sharing releases the world's grip on us. A fourth might be contentment, that we're to live within God's provision. And when we put these big rocks in, well, those are the foundation to the decisions that we make, and those come, we realize, are all around us.

You know, every day you're faced with financial decisions that you're looking to run through the lens of biblical wisdom. Well, we want to help you do that. So call today. The lines are filling up, but we've still got room for you. 800-525-7000. You can call right now. Let's dive in today. We're going to go out to Albuquerque to begin today, and Cody, you'll be our first caller, sir. Go ahead.

Hey there, Rob. Can you hear me okay? I sure can, yeah.

Awesome. So I guess my question was, I'm a newlywed, I'm only 26 years old, so I was looking to invest in something, whether it be real estate, but my main question was on the topic of cryptocurrency, and if you had any perspective on, you know, where it's going to go maybe in the future, like if it's, you know, when stocks first came out, everyone thought it was a big gamble and whatnot, but I mean, I know cryptocurrency is pretty new to the general public, but I mean, I don't know if you had any, you know, fresh perspectives that would fill my mind, you know, maybe if it's good, bad, you know, or if you're warm about it, kind of just asking about that, I guess. Yeah, makes sense, Cody. So some thoughts generally about crypto, and then we can get into your specific situation. First of all, I don't think it's going anywhere. I mean, this is a new form of computing technology. We're thinking about it most often these days in the form of a new digital financial system, but it will have far more applications than just that in terms of the technology behind it, and it's not going anywhere. Now, as it relates to a new form of money, you know, we most often think about Bitcoin, and that kicked off in 2008 with an anonymous white paper that, interestingly, was only nine pages long. Anyone can download it and read it, but the vision was a peer-to-peer currency outside the control of any government, and it checks all the boxes of functional money.

You know, you might have learned about these in economics class, durability, portability, fungibility, scarcity, divisibility, and recognizability are a few of them. And more importantly, and in direct contrast to the inflationary monetary policies we're seeing around the world today, Bitcoin was designed from the beginning to be sound money. So unlike government currencies, which are constantly being devalued, and by printing more, there's a fixed cap of Bitcoins at 21 million that can ever be produced. And so it has a lot of the same, quote, sound money appeals that have attracted people to gold, and that's why you'll often hear it called digital gold. Now, the value of Bitcoin raced ahead and at an astonishing pace, and it's had quite a bit of volatility along the way. But the big idea is that the technology which runs on something called blockchain, which is that record of transactions that are maintained on a decentralized network of computers, are pretty appealing. Because in this age right now where people are questioning, you know, the Federal Reserve and global health institutions and what they're telling us, and big tech companies that are deplatforming people, there's quite a bit of appeal here because it doesn't require this blind trust in an institution that's controlling the ledger.

And so with cryptos, it takes something we're already familiar with, currency, saving, lending, and so on, which normally requires us to interact with a big institution, and it redesigns that function using a computer code in a way that enables groups to accomplish it in a trustless, decentralized way. Now, as it relates, so that's the technology, but as it relates to an investment, it's still pretty speculative. And so because of where we are still very early in the development of cryptos, we're in that speculation phase, like you might have thought of the dot-coms in, you know, 99 and 2000.

AI is in a similar place now. And so there's a lot of volatility in crypto, and in particular because, you know, number one, we just don't know still today which cryptocurrencies are going to survive and which ones are going to end up worthless. We've already seen a few of them fail. And then secondly, we don't totally know how the governments around the world are going to react to Bitcoin and other cryptos as they threaten their stranglehold over money, frankly.

And so they, you know, governments get a lot of benefit from controlling their currencies and giving people a way to opt out of the official money via something like Bitcoin could ruffle some feathers and has been. So I think for those reasons, I would keep it in the most speculative category. And when we're dealing with speculative investments, we need to have all of our other boxes checked first. So I would want you to be out of consumer debt, namely credit cards. I would want you to have that emergency fund. I'd want you to be saving in your retirement account.

But if you had all of those pieces in place and you said, I wanted to take 5%, certainly no more than 10% of your portfolio and put it in something like Bitcoin, I would be okay with that as long as you understood the inherent risks along the lines of what I just described. Does that make sense though, Cody? Yeah, that makes complete sense. I guess it was just, I'm just trying to find something, I guess, along the lines of either like real estate or something just because I'm self-employed. So that's the kind of the reason that, cause I don't have, you know, I'm not accumulating any 401k or anything like that right now.

And just for the fact of, I guess I make more money doing, being my own boss, I guess, in a way, you know what I mean? Yeah. Do you have a SEP IRA, a SEP SEP IRA? I don't.

Okay. That might be something to look into because that's going to allow you to put away a lot more money than you would be able to in an IRA, for instance. So that the SEP IRA is going to allow you to put in $69,000 or 25% of your compensation. And then you could invest it in a crypto ETF, but I'd make that a very small portion and put the bulk of it in a properly diversified stock and bond portfolio.

And then when you're ready, I love real estate as well, but I think getting that money in a tax deferred environment in a SEP IRA would be a great next step for you. Cody, thanks for your call, my friend. God bless you. We'll be right back on Faith & Finance Live. Stay with us. Great to have you with us today on Faith & Finance Live. I'm Rob West. Hey, before we head back to the phones, let me mention we're just a couple of weeks away from the end of June.

Why is that significant? Well, it's the end of our fiscal year here at FaithFi, which means this is a really important time for us to hear from you with your listener support. So if you'd like to support our work here at Faith & Finance Live, we can only do it with listeners like you who say, you know what, we love this ministry and we want to see it continue and reach more people. Your gift of any amount between now and June the 30th would go a long way to helping us reach our goals. You can head to faithfi.com and click give.

That's faithfi.com and click give and we'll say thanks in advance for your generous support. Let's head back to the phones. We've got a few lines open, by the way, 800-525-7000. You can call right now.

Ifedayo in Indiana, go right ahead. Hi. Hi, Rob. How are you?

I'm very well, sir. Thank you for calling. Yeah, thank you for what you do. I listen to your program every day when I'm going from work from work to home every single day. Thank you for all you do.

Absolutely. Yeah, my question is I was able to get a second mortgage. So after moving from the old house to a new one and after like about two months, I was able to sell the old house. So my problem now is I'm looking into because of the interest rate is very high at this point. So I would like to refinance but unfortunately I don't know or nobody knows when the interest rate will be coming down and at the same time I don't know if I should wait to refinance or try to do a recast or put a lonesome amount of money down towards principal. So I don't know which of those three options that I can go for right now.

So what are the advantages of those and what do you think? Very good. Ifedayo, so you have two mortgages on the new property, is that right? No, I was able to sell the other one. So I only have one mortgage. Okay, so you have one mortgage on the new property and what is the value of that mortgage? What's the loan balance currently? The current right now is about I think it's around $45,000.

Say that again, how much? $645,000. $645,000. Is that the property value or the amount of the mortgage? The property value is about $700,000. Okay, so you borrowed $650,000 roughly and you think it's worth about $700,000?

Yes. Okay, and how much do you have available that you could put down on it if you wanted to pay down the principal? Yeah, I'm looking towards around $150,000. All right, you have $150,000 in savings from the sale of your other property, is that right? Yes, yes. Okay, and then do you have any other emergency savings separate from that or would that be included in the $150,000? I have up to at least seven months of emergency savings. Separate from the $150,000?

Yes. Okay, very good. And what is the interest rate on the mortgage that you have? It's about $6.8. Okay, and do you have any other debt? Except for student loan, I don't have. Okay, how much do you owe on student loans? I would say approximately $50,000. $50,000, and what are the interest rates there? About 6%.

About 6, okay. Yeah, I mean, I like you putting this money toward the house and paying it down. I wouldn't refinance right now.

You actually couldn't do any better than you have. You may go up, plus you've got the cost of the refinance and this is a pretty sizable loan, so you're going to be paying those jumbo interest rates, which are higher than the regular conventional rates, and then you've got the fees on top of it, which could run you three, four, five percent. I mean, it's $680,000. I mean, you could be talking $25,000 in fees, so I'd leave that mortgage right where it is. If it were me, I'd probably go ahead and pay off the student loans, unless, do you think you have any forgiveness coming?

Not that I know of. Okay, well, if you wanted to wait and just kind of see how that shook out, you could, but anything you don't pay toward the student loans, I'd put toward the house. You know, if that's what that money came from, if it was equity from your old home and you don't have any other debt other than the student loans, are you saving for retirement out of your paycheck?

Yes. All right, so I would focus on getting that mortgage balance down by just putting that money toward the mortgage. It's a guaranteed 6.8% return, which you're not going to get anywhere else equal to the interest rate you're eliminating by paying it down, and then when you can save one and a half percent at a minimum, so we're talking of an interest rate of around five or less, that would probably be the time to refinance. If, unless you wanted to wait and give it, you know, you probably, I'm guessing, and this is all it is, you could get around that 5% rate in the next 24 months.

Perhaps you could get down into the fours, you know, in the next three years. I think it's going to come down slowly, but somewhere in that four or five percent range is probably when you want to refinance, not until then. So in the meantime, I would put whatever you think you want to against the student loans that you're not going to get any forgiveness on, and then I'd put the rest toward the house. Okay, so you think recasting for the house would be better than putting towards the principal? Yeah, when you say recasting, are you looking for them to adjust your monthly payment?

Yes. Are you unable to afford the current payment? I'm unable to.

I mean, I don't have a problem. Okay, so I would just continue paying on it. I don't think you need a recast. I would just, yeah, because that'll involve them re-amortizing it, and so if you just leave it the way it is, continue paying your scheduled payment, but put, let's say, a hundred thousand on it because you want to pay off your student loans, that's just going to save you a bundle in interest. But avoiding the recast will allow you to pay it off even quicker versus trying to get that mortgage payment down.

So if you can continue to afford it, I'd probably just stick with it and just pay the principal. Oh, okay. All right. Thank you. Appreciate it. Thank you. All right. Ifadio, thank you for your call.

God bless you, my friend. This is Faith at Finance Live. I'm Rob West. We're taking your calls and questions.

Got a few lines open, 800-525-7000. Plus, Bob Dahl is going to stop by. It's been a couple of weeks since we talked to Bob. He'll give us an update on the market, an all-time high today in the S&P 500.

More on that straight ahead. Stay with us. So glad to have you with us today on Faith and Finance Live, where we apply biblical wisdom to your financial decisions and choices. You can call right now.

Just three lines open, 800-525-7000. Let's head back to the phones to southern Indiana. We go. Grant, you'll be next up, sir. Go ahead. Well, I'm 83 years of age. Yes, sir.

My mother, this would be 99 and I had an uncle, this would be 99, 11 months and two weeks of age. Wow. That's great. So I'm wondering, I just had some people buy my real estate from me. I had a couple of duplexes and a couple of houses. And I recently sold those to two investors for $670,000. Okay. And I'm setting up that fund now.

And really, I get so scary. I think that's $1,755 a month. And I'm kind of, I'm wondering what I should have missed. And I've got a couple of IRA accounts. One of them is actually an HR 10 that I put, I think it was close to $8,000 in it. Okay.

Probably 30 years ago. Yeah. And I just wonder what should I do with all that money that I don't need really. Yes, sir. Well, clearly longevity runs in your family.

And so you've got a still a long time horizon here to think about if the Lord tarries and you're in good health, we could need this money to last a couple of decades or more. Let me ask you, Grant, with the portion in the IRAs and so forth, do you have a financial advisor that's selecting those investments? Are you doing that yourself?

I've always done it myself. Okay, very good. And you're not drawing anything out of any of these investments. You're just living on the Social Security alone.

Is that right? Honestly, I haven't touched the Social Security probably in two years. I don't really need a home that's paid for. I have three children, two of them could use some financial help. Yes, sir. Very good. I've got other people trying to talk me into putting money into a nursery. One of them is trying to talk me into buying gold. Yeah.

Okay. What do you think about buying gold? Yeah, I like gold here. I just, you know, it's pretty expensive and it doesn't generate any income. So those would probably be the two biggest downsides. And then, you know, when we compare gold to a properly diversified stock and bond portfolio, it tends to be a little more volatile over the long haul and it hasn't done quite as well.

So I like, you know, staying with the pretty, you know, kind of the keep it simple method. And, you know, that would be, you know, at your age, probably a portfolio of certainly real estate has done well for you. I think you have to decide whether or not you want to continue to be a landlord.

You may not just because that involves quite a bit of work. Apart from that, I like fixed income, especially here. I mean, you could buy a 10-year treasury, you know, and get 4.3% and the government will, you know, guarantee a 4.3% if you hold to maturity and get your money back.

But as interest rates come down, these bonds will do well. Again, I think putting five as much as 10% in gold could make some sense. I'd probably start at five and then look to buy to add to it when the price of gold comes down.

It's pretty high right now. And then I think having 30% in stocks here makes sense because, again, we want to plan toward a 20-year time horizon. And so having a, you know, a nice portfolio of dividend paying stocks that are, you know, a good cross-section of the market makes sense to me. So I think if you were to put 20 to 30% in stocks of your total investable assets and put five to 10% in gold and put, you know, 60% to 70% in fixed income and then whatever portion you want to keep in real estate, whether that's through real estate investment trusts or direct ownership, I'd probably pull that out of the fixed income portion. But that would probably be the direction I'd go and keep you nice and liquid. It'd give you good diversification among various asset classes, real estate, precious metals, stocks, bonds, so you're properly diversified. And it gives you good liquidity because with the exception of the physical real estate, you know, everything's very, you know, you can liquidate if you need it because you want to help the kids or give it away or use it for yourself. So give me your thoughts on that though.

Well, I think diversification is a good idea. Yeah. I have been, I've been buying, I've made contributions to third banks and I'm at a grocery store right now getting ready to buy some vegetables and stuff that I can contribute to a food bank. I love that. That's great. I've been contributing $100 a week to the to the church that I go to.

Okay, very good. Well, let me make one other suggestion, Grant, just as you think and pray on all that I've shared is perhaps this is a season where you'd get an advisor to come alongside you, not someone who's going to try to sell you an insurance product, an annuity, if that's not what you want. I'm not saying there's never a place for those. It's just typically not my first approach, but to have somebody who could just take responsibility of this for you and make sure it's properly diversified with your goals and objectives in mind. And then you can just enjoy those kids and giving the money away. Now, if you enjoy it and you've obviously done well, go for it, continue to do it. But if you wanted a godly advisor, we recommend the Certified Kingdom Advisor designation and we'd be happy to have our team connect you with somebody there locally. But at the end of the day, you're doing a great job. You've been a wonderful steward of what God has entrusted to you. Sounds like you've done quite well. And I love that you're always thinking generosity, whether it's a local food bank or your own children or the local church.

All of those are important. So hopefully this has been helpful to you. But if we can serve you in any other way in the future, please don't hesitate to reach out. May the Lord bless you, Grant, and call back anytime.

Well, folks, we're going to take one more break here. When we come back, Bob Dahl will be with us today to share his update on the markets and the economy. We've got some inflation data out as of late, unemployment data. Also, what are the companies saying with regard to forward-looking guidance? Are they expecting increases in their profitability? Are they looking to pull back?

That tells us a lot about where this economy might be headed. We'll get Bob to weigh in on all of that. We'll try to get to a few more questions as well.

Cletus, Bonnie, Christine, I know you're waiting patiently. We'll do our best to get to those calls as well. Hey, before we head to this break, let me mention one more time as we head toward June the 30th, the end of our fiscal year here at Faithfi, a really crucial time for us to hear from you with your support for the ministry. A gift of $100, $1,000, or $10,000 would go a long way to helping us meet our goals. Faithfi.com, click Give.

Faithfi.com, and click Give. We'll be right back. Well, thanks for joining us today on Faith in Finance live here on Moody Radio. I'm Rob West.

With me in this segment, my friend Bob Doll. He's chief investment officer at Crossmark Global Investments. He joins us each Monday to check in on the markets and the economy.

And Bob, it's been a couple of weeks since we've spoken. New data out, I guess, suggests largely that this economy is, despite the strength we've seen, starting to slow. Is that what you would agree with? Agreed, and it's centered largely on the U.S. consumer that is struggling a bit.

The lower end, for sure. Now, in the last couple of weeks, middle-income Americans seem to be struggling, and so that causes the economy to be more mixed to the slowdown point you mentioned earlier. We also had weekly initial unemployment claims that come out every week. Rob, last week's number was the highest since last August. While still not at a high level, direction just points to some economic slowdown. Yeah, no question about it. So then you put that alongside today and the fact that we hit a new all-time high on the S&P 500. How do you reconcile those?

You don't. The path of least resistance for the stock market continues to be higher, and so we had a green day. It was mixed the first half of the day, and then the afternoon started going up, and we closed near the high, and some of the averages made a new all-time high again on the back of the big tech outperformance, the AI secular growth tailwind that's been driving things, and so that's enticing investors to come on in. Yeah, no question about it. Bob, is it still a pretty narrow group of stocks that are charging forward and leading these major indexes higher?

It is, sadly. I mean, most market observers, myself included, like to see healthy markets broaden where more and more stocks participate, not the opposite. In fact, last week, 17% of the stocks on the exchange hit a new three-month low. That's the highest number since the fall, so the average stock is not doing nearly as well as the market averages, because those mega cap stocks are carrying the day.

Yeah, no question. Bob, as we listen to the narrative around these company earnings reports, what are they saying about the forward-looking guidance? Mixed answers there. Some companies, good news. Some are struggling a little bit, I'd say to summarize, they're still seeing some cost pressures, some raw materials, some companies' labor. I hear lots of management say it's hard to find the specific labor that we're looking for, so that's a struggle. Corporate profit margins have done reasonably well, but on the other hand, you've got lots of companies starting to say, people don't want to pay the prices, we're asking.

You've seen some very visible restaurant stocks lower their prices in reaction to what I've just said. So again, a mixed bag, which is a confusing bag. We get into these periods where confusion goes up, uncertainty levels go up, and the election that's in front of us, the geopolitical uncertainties, it's pretty easy to become confused. Yeah, no question. Bob, we've had some calls from folks looking to refinance these mortgages, and obviously now is not the time to do it, but if they're in at around seven and they're saying, it doesn't make sense until I can get down in the fives, hopefully even sub-five, I mean, are you thinking that's a couple of years away? What would be your best guess at this point? No, I think to get back toward five is going to be a tall order.

A recession, Rob, if that ensues could get us there, but an okay economy, I don't think we're going to see those mortgage rates move from the current seven to five in a fraction anytime real soon. Interesting. All right, Bob, we always appreciate it, my friend. Thanks for stopping by. Have a great week. All right, that's Bob Dahl, chief investment officer at Crossmark Global Investments.

You can sign up for his weekly market commentary at crossmarkglobal.com. All right, back to the phones. We'll get to as many calls as we can here. Let's go to Plant City. Cletus, thanks for your patience. Go ahead. This is Cletus. Hi there.

Yes, this is Cletus. Go right ahead. Okay, me and my wife, I'm retired. I'm 89 years old and we have a little money in the bank and we just want to know a place to, what we should do to invest it in a CPA that's closest to us here in Plant City or Lakeland. Ah, okay. Yeah, when you say you want to invest it, Cletus, are you just looking to try to keep it very safe and try to get a little bit more return on it, more yield, or are you actually wanting it to put it at risk and put it in something like stocks and bonds?

No, I just get a little more yield. Okay, yeah, got it. It's only given us one percent now in the bank and we got about $25,000 there, so at least $15,000 right to start out with.

Yes, sir. And are you guys comfortable or could somebody, a family member, a friend, help you if you're not doing business online? Would you be interested in an online bank?

Well, my wife shakes her head no. I understand and I'm not making light of it, but you know, the online banks are where we will find the most yield. I mean, for instance, you can get, you know, four and a half percent right now with FDIC insurance, meaning backed by the full faith and credit of the United States government with a very highly rated online bank like Marcus, the retail bank of Goldman Sachs. You could get four and a half percent, which on 25,000, you know, would give you $1100 over the next 12 months.

But if you said, I'm just not comfortable with that, you and or your wife, I certainly understand that you are the stewards and I want you all to feel very comfortable with anything you do. The next best option, Cletus, would probably be to find a credit union in your area that you could, you know, has a brick and mortar location, but it's going to give you a little bit better rate of return than the one percent you're getting from your bank. So I think that's probably your next best option. And then beyond that, it's going to be, you know, to use an online bank to get up into the four, even five percent, which is available right now, but it's not going to be through a brick and mortar institution. Well, would you have any CPA?

Yeah, an advisor to talk to? Right. Sure.

Let's do this. I'm going to put you on hold and I'm going to have my team get your information because I don't want to just give you a website and tell you you have to go search because I feel like you'd probably better serve with somebody to call you and your wife and they can put in your zip code and help connect you with the Certified Kingdom Advisors there in Plant City or at least close by. So you stay on the line, Cletus, and my team will get your information and we'll get somebody from Kingdom Advisors in touch with you to make that connection. Hey, God bless you and your wife. Thank you for being on the program today. We appreciate it.

To St. Charles. Hi, Debbie. Go ahead. Hi. Real fast.

Thank you so much. People are talking about having cash at home now, and I wonder like about how much would you advise and then also how much would you advise if any in your safe deposit box is cash? Yeah, it's a good question. I mean, typically the rule of thumb, Debbie, that you'll hear from most advisors is thinking in terms of a couple of weeks worth of expenses. And so if there was a disruption in the banking system or, you know, you had a major, you know, natural disaster and you typically want to think in terms of how do I have a couple of weeks worth, at most, four weeks worth of cash at home. And I'd put that in a safe, a fireproof safe. In terms of a safe deposit box, I don't think there's really any need to have anything there. You may want to have important documents there if you don't want to keep it at home in a fireproof safe. But in terms of cash, I wouldn't keep cash in a safe deposit box.

I'd have your at-home cash and then I'd have your three to six months emergency fund in the bank that you could access online, you know, through an ATM or something like that. But the at-home cash of two, at the most four weeks, would be to, you know, deal with the natural disaster or that temporary hiccup in the banking system. Yeah, that doesn't sound like very much. You're not thinking like four or five thousand then, like a lot of people are stowing away.

Well, I mean, yeah, no, not really. I mean, it's a month's, at the most, a month's worth of expenses. So however much you normally would spend in over a month's time would be, you know, I mean, I just can't think of a scenario in the last 50 years where somebody needed more than a month at home. And, you know, you normally you'd be able to restore electricity or the banking hiccup would be resolved and you'd be able to get to an ATM and get the cash out. I just don't like the idea of having thousands and thousands of dollars at home unnecessarily. But at the end of the day, you know, think and pray through it.

But I think that that two to four week worth of expenses, Mark, is really my, probably where I would go. Okay. So, yeah. All right. So that's not quite as bad as I don't have an ATM or a debit card.

I just don't. So I would have to go to my bank and get cash. I see. Yeah. Now, I understand. Well, you could certainly factor that in or maybe are you uncomfortable having a debit card? No.

Okay. So maybe ask your bank for a debit card on your existing account. But, you know, maybe you make an appointment with them and talk through the different options. And that might give you a little bit more peace of mind that as long as you could get to an ATM, you could add to what you already have.

But hopefully that gives you some other things to think about. Debbie, Lord bless you. Thanks for calling today. We appreciate it. Quickly to South Florida. How you vet?

How can I help? Yes, I was calling because I want to diversify in precious metals and I have an IRA now. I want to know if I should roll it over to have them to put precious metals in my IRA or should I have it at home where I can get precious metal. I really want it silver rather than gold because gold is kind of expensive. Okay.

Yeah. You know, here's the way I think about that. I would think in terms of your total investable assets, you might want a five percent forever allocation that you actually take possession of the physical metal. So in your case, silver. Keep that at home in a safe, fireproof safe and then go another five percent in your IRA.

But you can buy that through one of the tracker ETFs without actually buying the physical metal. But I wouldn't go over 10 percent total. I hope that helps. Thanks for calling. That's going to do it for us. Faith and Finance Live is a partnership between Mooney Radio and Faith five. Big thanks to Dan, Lisa, Deb and Jim. Couldn't do it without it. We'll see you tomorrow.
Whisper: medium.en / 2024-06-17 20:13:02 / 2024-06-17 20:29:31 / 16

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