Share This Episode
Faith And Finance Rob West Logo

Financial Discipleship for Families

Faith And Finance / Rob West
The Truth Network Radio
June 19, 2024 5:56 pm

Financial Discipleship for Families

Faith And Finance / Rob West

On-Demand Podcasts NEW!

This broadcaster has 418 podcast archives available on-demand.

June 19, 2024 5:56 pm

There’s a well-known verse in Proverbs 22 that urges us to train up our children in the way they should go. And it applies to managing money as much as anything else. But how should Christian parents train up their children to be good stewards? On today's Faith & Finance Live, host Rob West will share some great insights on financial discipleship for families from Brian Holtz. Then, Rob will answer your calls on various financial topics. 

See for privacy information.

Rob West and Steve Moore
Rob West and Steve Moore
Faith And Finance
Rob West
Rob West and Steve Moore
Rob West and Steve Moore
Rob West and Steve Moore

Train up a child in the way he should go.

Even when he is old, he will not depart from it. Proverbs 22, 6. Hi, I'm Rob West. That verse applies to managing money as much as anything else, but how should Christian parents train up their children? We'll hear some great insights on that today from Brian Holtz, and then it's on to your calls at 800-525-7000.

That's 800-525-7000. This is Faith and Finance Live, biblical wisdom for your financial journey. Brian Holtz is the Chief Executive Officer at Compass, well-versed in finances. Brian had some great teaching for us at the Kingdom Advisors Conference in Orlando about financial discipleship for families, and we thought we'd share just a bit of that with you right now. We're going to introduce a concept that's foundational. So Howard Dayton came up with this acronym, and it's really catchy.

The idea behind it is not all that new. You'll find it in any sort of educational theory, but we call it MVP parenting. MVP parenting consists of three things. You're going to provide modeling, meaning you're going to do it in a way they can see, and so the important thing here is that they have to be able to see it, right? If you want your child to learn how to pray, but you only pray in your prayer closet, all they know is that you're in the closet.

You got it? As parents, we know that our kids are always watching, aren't they? Especially when you don't want them watching. They are constantly absorbing it and soaking it in, and that's what modeling is, and whether we think we're modeling or not, we are modeling. They are learning our behavior. They're either learning how intentional we are with money or how we handle it kind of haphazardly, right? Either way, they're learning, so we want to model the right behavior and model it in a way that they can see.

Second, we want to provide verbal instruction, which is explain it in a way they can understand. So, all right, I'm praying after I've done my Bible reading. I now want to say to my kids, now that I've reflected on God's word, I'm now praying because, because otherwise they're going to guess. They're going to fill in the blank, right? Imagine how many explanations my four-year-old daughter could come up with for why I put money in the plate at church. Do I have to rent the seat? Is this like a pay it forward thing?

And if I get to heaven and I haven't paid enough, they're going to kick me out and take my shoe. These are the kinds of things my daughter thinks about, right? And so I can close that gap by actually telling them why I do it. I explain the what and I explain the why. Third, we provide practical opportunities, which is inviting them in a way that they will try. We want them to actually engage in this, right? It's not enough that they've seen us do it and they know what and why.

We want to give them opportunities under our supervision where they can actually give it a try in a way that's appropriate for their age group. All right, now let's get into how we have these conversations. What is your experience? Document your experience.

This is a little bit of the modeling part, right? What have you done to prepare this wealth that is now in front of us? How can you have this MVP experience with the next generation? Now, these work, by the way, with adult children at work, with little children, it doesn't matter what their age is, modeling verbal explanation and inviting practical experiences are all very effective ways to help anyone. I've done this in the corporate world at work, right? I've got to make a presentation to the board, and so I bring my junior member along and I say, here's how this went down and here's why. Now, next time I'm going to have you do 30 seconds of presentation, or I say, you're going to pretend to do a board meeting. What am I doing? I'm raising up the next generation and this is a grown being, right?

This is an adult in the workplace. We can do the same thing with our kids, but it starts with the family vision. It starts with why are we doing this? Why do we exist? Why has this wealth been entrusted to us and why do we make the decisions that we do, right?

If we don't have core values and a family vision, it's all going to fall apart. Good depends on purpose, doesn't it? If I ask you if my book is good, I know you're all going to say yes, but if you're a person who likes to read biographies, then it's not a good book to you, is it? But if you want to learn how to teach your kids biblical financial principles, it's a very good book.

But whether or not it's good depends on its purpose. And so if our family is going to be good stewards, we have to define what that means. What has our family been called to do? That was Brian Holt, CEO of Compass, well-versed in finances at the Kingdom Advisors Conference in Orlando. His new book is titled Financial Discipleship for Families, Intentionally Raising Faithful Children.

You can buy it wherever you get your books. 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. 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. Great to have you with us today on Faith and Finance Live. I'm Rob West. Well, it's time to take your calls and questions today. The number 800-525-7000. That's 800-525-7000.

That's 800-525-7000. We've got lines open and we'd love to hear from you today. As we begin to dive in here in just a moment, we'd love for you to know our desire is to be an encouragement to you, to take you into God's Word, help you process those practical decisions and choices you make every day in your financial life in light of God's truth. So let's do that now. We're going to begin in Lancaster, PA and welcome Jane to the broadcast.

Go right ahead. Well, thank you so much, Rob. I'm an old timer. I've appreciated your program since the days of Larry Burkett. Wow. That's great.

Yeah, it's really a blessing and I've learned a lot. But my question today has to do with tithing. I have a long-term type investment comprised of stocks and bonds.

And sometimes in a year, they may show a slight increase over the principal, but on other years, there's a loss in the principal. Now, I really didn't count on giving a tithe until I totally cash out that holding. But now I am thinking about cashing out a portion of it because I have some home repairs coming up. And so, of course, my question is, how do I determine my tithe when I'm not cashing out the whole thing?

Yeah, that's a good question. So, Jane, is this in a taxable account or is it in a retirement account, pre-tax? No, it's a taxable account.

Okay, very good. Yeah, so whenever you liquidate a position, whether it's a portion of a holding or the entire holding, you will generate a long-term or a short-term capital gain or capital loss. And that capital gain or loss for tax purposes is essentially your increase or your decrease in the case of a loss. And so, what you would be able to do is say over a period of time, and it might be most effective to do this at tax time and look at the prior 12 months, is you'd take all of the realized gains and losses for the year, those positions that you sold, not the gains where you held on to the stock because that might, you know, turn the corner and head back down. But those positions where you've sold and you'd total up all the gains, you'd total up all the losses, you'd subtract them from one another. And for that period of time, in my example, 12 months, and you could do this on a shorter period if you wanted to, you would come up with the net gain or loss for that period, and then you'd take a tenth of that and make that your tithe. And so, it really comes down to what is my increase over a period of time, and it can only be based on realized increases because, again, if it's unrealized, that means you still hold the investment and you don't know whether or not you will ultimately have a gain or loss until it's sold. But does that make sense to you?

Well, it does. So let me just see if I'm totally understanding what you're saying. So you're saying, for example, if I take out the amount of money I need to take out in a year, then at the end of the year, I'll know what the gain or loss might be and go from there?

I would need to determine that for tax purposes. It's really not as much, Jane, about how much you took out. Because remember, you know, you might put in 100,000 and you could take 20,000 out. Well, you don't have an increase at that point if the value is what's remaining in the account is 80,000.

You've just taken money and moved it around. So really, the increase comes down to you making an investment in the case of stocks and that investment growing and then you selling it and realizing a profit or a gain. And so what you would have to do is not look at the total amount of withdrawals for that period of time. You would have to look at each individual holding that you sold and say, what was my cost basis?

What did I buy it for? And then you would factor in what you sold it for. So you take your selling price of each individual investment minus your purchase price. And then you determine on the number of shares that I sold, did I have a gain or a loss? And if you had multiple investments that you sold during the year, some of them you may have sold at a profit, others you may have sold at a loss. And so you'd have to determine across all of the sales for the years, not the withdrawals, not the withdrawals, but the sells. Did I have a net profit or a loss?

And then that would be the amount that would help you determine what your tithe would be. Okay. Okay. It just needs a little bit of work on my end.

It does. And it's work you're going to have to do anyway for tax purposes, Jane, because anytime you sell an investment at a profit, the IRS is going to want, assuming you are in the right tax bracket where there is a capital gain, they're going to want to know what was the cost basis and would you sell it for? And the difference is either a gain or a loss and it may or may not be taxable. So you're going to need to go through that exercise to determine for each of those sales, did I sell it at a profit or a loss? And then you can total them all up for the year and determine whether you actually came out ahead.

And if you did, not the amount you took out, but the gain is what would be used to determine the tithe. Okay. Okay. All right.

Yeah, I think, I think I'm understanding what you're saying. Yeah. So, okay. All right. Thank you very much.

You are so welcome. And I appreciate you mentioning the late Larry Burkett. You know, Lancaster has always been a wonderful market, going all the way back to Money Matters when Larry was on the air, just so many folks. And Larry would visit that part of the country often and, and speak in churches.

And he was always just so fond of that part of the world. Now, do I see here that, that you have a second question? Well, I did if you, if you have time for it.

Yes ma'am, go right ahead. And, and what it has to do, it has to do with picking an online bank. I've been very interested in an online savings type bank. And I, and I've explored it, as you said, But I guess what I'm wondering is, how do I know what the rating of that particular bank is? Because I have, I have noticed that some of the ones that really pay the top rates have only been around less than a year.

Yeah, very good. Well, here's what I would say. As long as they have at least a four and a half star rating from Bankrate, and that's an independent review, you'll see that for everyone listed at, four and a half to five stars, then I would feel very comfortable. And ultimately, what you're looking for is that FDIC insurance.

But with FDIC insurance and a four and a half or five star rating, you should be in good shape. Thanks, Jane. We'll be right back. Thanks for joining us today on Faith and Finance Live.

I'm Rob West. We've got some lines open today. We're ready for your phone calls. The number to call is 800-525-7000.

Again, that's 800-525-7000. You can call right now. Let's head right back to the phones.

We'll go to Bradley, Florida. Hi, John. Thanks for calling. Go ahead. Hi, Rob. Thank you for taking my call.

Yes, sir. Yeah, I'm a disabled veteran, and I get disability from the VA, and I get disability from Social Security. But my Social Security will become a retirement in two years, and I don't know if the VA will also become a retirement. But will I pay taxes on both when I turn 67 in two years? Or will I not pay taxes on the VA? Yeah, your VA disability payments are not taxable and would not be included in your reported gross income. Your Social Security benefits may be taxable. If they're less than $25,000, you would owe nothing between $25,000 and $32,000, up to 50%. And so now, I would check, do you normally use a CPA, or do you do your taxes yourself? My daughter doesn't afford me. She has a turbo tax.

Okay, got it. Yeah, I mean, so that should pick it up. But the tax-exempt portion of the VA benefits is included in the combined income formula used to determine the taxable portion of Social Security benefits. So that could increase your tax liability, because depending upon what your combined income is determines what percent of your Social Security is taxed. And so it could be up to 50%, could be up to 85%. So although your VA disability benefits are never taxable, the combined income is what drives how much tax you pay and on what portion of the Social Security.

So that's where you just want to be aware of that. And she'll need to factor that in as she's completing her taxes. And if you need a second opinion, you could reach out to a CPA.

But bottom line is, your VA benefits will not be taxable, but your Social Security may be. And it's really going to come down to your total combined income. Can I give you my total income?

Yeah, I wouldn't be able to get into the kind of the numbers of it per se. But I would just say, you know, at the end of the day, just recognize that the total of that combined income will ultimately determine, you know, how much you pay and you could find that those schedules pretty quickly depending upon which tax year we're talking about and, and so forth. So you could you could find all that information online. But we appreciate you calling today, John, and thank you for your service to our country, sir. We're very, very grateful.

Let's head along to Indiana and welcome another John to the broadcast. Go ahead. Good afternoon, sir. And I am also retired military myself. Great. Well, thank you for your service as well.

Go ahead. The big question. My wife passed away in March. And the insurance, like, I never dealt with this before. Obviously, is the insurance money at the end of the year taxable? You're talking about the death benefit? Yeah, no. Life insurance, death benefit is generally not taxable. No.

And I'm so sorry to hear about her passing, but that that is the case. Okay, so in doing that, I've been able to pay off the house, I pay off the car loan we had, funeral expenses are taken care of. So the biggest thing I have now are credit cards, and a home equity loan we had because the house is 20 years old, and you're starting to have to make a whole bunch of repairs. Yeah. So do I take some of that money and try to pay off as much of that debt or invested in say, like, CDs, or money market fund to get a little bit of extra income to help pay it off more?

Yeah, it's a good question, John. So what did you receive in the form of the life insurance proceeds? Total was 125. Right now I'm looking at 80,000 still possible. All right, 80,000. And give me just kind of a rundown of the debts that you have. The home equity is a little over 33,002.

The three cards, one is 5800 8700, and one is 18,000. Okay, all right. And I haven't, I haven't, I don't get to start doing the RMD. I just turned 72.

So I don't know when next year, the RMD would come into effect. And I'm also and I'm also working part time. So crazy. Yeah, you got a lot going on. So we've got 32,000 on the home equity cards all in or about 32 five. What other assets do you have both savings and retirement assets? Savings are just over five. I've had one IRA just under 27.

And another one just over 13,000. But like I said, I haven't started taking the RMDs off of that yet. So Okay, so about 40,000 in in retirement assets. All right, and in savings, you have 5000 liquid. Yeah.

Okay. And what are your sources of income now? You said you're still working?

Is that right? Yeah, my military retirement is just under 3000 a month. Social Security is just under 15. And I just had that change to be able to taking out taxes on that.

So it's not so much of a hit at the end of the year. So you got about 4500 a month coming in on that less the taxes. Some military and Social Security. Yeah. Yeah.

Paying off a house in the car freed up $1,100 a month. Yeah. Okay. On the budget.

Very good. And how much are you making on the the the amount that you're making from your job? It varies if it's part time, it's sometimes paychecks have been like 400. Sometimes they've been almost twice that just a number of hours in a two week period.

Yeah, got it. Okay, so somewhere between four and $800 a month, or every two weeks. And how much do you typically have left over at the end of the month?

You know, does it? Are you able to save all or you know, most of the the work pay? I've just recently since everything since all the accounts have finally cleared. I've just now been able to start looking at the numbers to see how much. All right, stay right there. I'll give you my thoughts on after this break. We'll be right back. So glad to have you with us today on faith and finance live. I'm Rob West. We've got some lines open today.

We've got room for several more questions. If you've got a financial question day, we'd love to tackle it with you. The number to call is 800-525-7000. That's 800-525-7000.

You can call right now. Before the break, we were talking to John in Indiana and John's wife passed away recently. He received some life insurance proceeds that he used to take care of a few items, but he's got a couple of remaining debts, namely a home equity line of credit at about $33,000 and then three credit cards totaling roughly another $33,000. And so all together he's got debt of about $65,000. He's wondering with the $80,000 he has remaining from the life insurance proceeds. Should he go ahead and pay off that debt or a portion of it?

And I think a couple of thoughts here, John. I would say, you know, given your military retirement plus social security, you're bringing in about $4,500 a month less in taxes, and then you're making another roughly $1,000 to $2,000 a month through some part-time work. I would want you to hang on to as close to six months expenses as possible, but I think you can do that and pay off both of these debts because if you eliminated the home equity line of credit and all the credit cards, that would still leave you about, you know, I'm guessing about $20,000 liquid because you've already got $5,000. You'd still have $15,000 remaining from the life insurance proceeds, so that's $20,000 that you would have in savings, but now your monthly expenses have gone down because you've eliminated the home equity line of credit and all the minimum payments on the credit cards, and so I'm guessing that your expenses might be somewhere around $3,500 a month, which would put us very close to you having six months worth of expenses in the bank, and you're not going to get a guaranteed 7%, which is probably what that home equity line of credit's at or more, the interest rate that you're paying on that. When you pay it off, you get a guaranteed return equal to that.

You're certainly not going to get a guaranteed return in the market equal to what you're paying on those credit cards, which is probably, you know, somewhere between 15 and 22%, so I think paying those off is going to save you a lot in interest and reduce your overall lifestyle expenses, still get you close to six months in the bank with that $20,000 that you'd put in high-yield savings, not investing it, very liquid, and then the goal would be to take every penny you have left over from your military and Social Security and part-time work every month and put that away to continue building up that savings account, and I think you'd be in pretty good shape at that point, but how does that sound? You know, I was just trying to figure out whether I know the interest on the accounts, except for like the home equity is like 8.5, but depending on what the prime is doing. Right. So I know that any kind of return on a CD or anything like that is definitely less than the double-digit interest on the cards. Right, right. Yeah, so that's the direction I would go. That's my best advice.

Pay them off, try to save as much as you can, and still still have, even the day you pay it off, you're still going to have five to six months worth of expenses in savings, so I think you'll be in good shape. Thanks for your call, sir, and again, thank you for your service to our nation. Let's go to Miami. Hi, AB.

How can I help? Hello. Hi, good afternoon, Rob. How are you? Very well, thank you.

Rob, I have a question. I'm looking forward to start a business, and I'm kind of having a little bit of a mind whether to open it as an LLC or an S-Corp. It's a new, I mean, it's kind of a small business.

Yeah, yeah. S-Corps and LLCs differ in terms of taxation. S-Corps are pass-through entities, which means the business itself doesn't pay income, federal income tax.

Instead, the individual shareholders report the income and deductions and credits. An LLC is also a pass-through by default. However, you can choose how they're taxed, the members of the LLC, and can instead elect to be taxed as a corporation if it's more advantageous to the members, so you have a little bit more flexibility there.

An S-Corp offers limited liability protection to owners and shareholders, and it has some stricter ownership eligibility than LLCs, so you can't have more than 100 shareholders, and they have to be individuals, usually U.S. citizens. And, you know, I would say that forming an LLC does establish your business as a separate legal entity from yourself as the owner, so you are not responsible for the debts and liabilities of the business, which is one of the main benefits. So I would say, generally, in your case, the LLC is that business structure that's going to combine the limited liability protection of a corporation with the flexibility and simplicity of the sole proprietorship or partnership, primarily from a tax standpoint. So I would say, for most people, the LLC is the way to go, but I think, you know, it's never a bad idea to check with a CPA and an attorney just because you're going to need them anyway, a CPA to help you get your books set up and make sure you keep good separation between your personal finances and the business for your deductibility purposes. You're going to want to be able to show what was clearly a business expense versus a personal expense to the IRS, and then the attorney to get your articles of incorporation filed, help you set up your books, make sure you've got a good rhythm in terms of keeping the business, you know, compliant with annual filings and so forth. And when you're dealing with those two professionals, they could look at your specific situation and advise you on the best business structure. But I would say for most people, the LLC makes a lot of sense.

If you don't have an attorney or a CPA AB, you could head to our website,, click find a CKA, and any of those certified kingdom advisors could make a referral to you. But hopefully that helps you, sir, gives you a few things to think about. We appreciate your call today.

Let's go up to Indiana and welcome David to the broadcast. Go ahead. Yeah, how you doing? Thanks for having me. Yeah, absolutely.

Hey, so I have an opportunity. Our companies are changing management companies, which I could take my 401k and possibly roll it into the new management company's 401k. But I've been thinking about possibly taking that money out, rolling it over into something else like an RA that I could manage as opposed to keeping it in the company RA or the company 401k because I just feel like I'm not making the money from that account that I should.

It's already invested 100% in stock. So I was just curious if I should like take that money, roll it over into like an E-Trade account and then at the same time just start up again my work 401k as a separate account. Yeah, you know, there's really no difference, David, in the two accounts, the IRA and the 401k from a tax standpoint.

They're both essentially identical. The big question for both of them is what are you ultimately going to invest them in? Now, as soon as you get into that new 401k, if it's with a new plan administrator, you're likely going to have a whole new menu of investment options and some may be great, maybe even better than what you've had. I think the question is are you in the right investments that are appropriate for your age and risk tolerance? The benefit of the IRA is you have unlimited investment options there, but I think it's just going to come down to who's ultimately going to select those investments. What do you have roughly as a balance in this 401k we're talking about? About 50k. All right, and do you have a sense of if you went into the IRA and you took the blinders off and you you can invest in anything, where you'd go with it, what you'd put it in?

Well, obviously right now AI is pretty hot, so that's probably where I would focus on. Yeah, the challenge is you're going to be really highly concentrated at that point and if it turns over and we realize that it's way overvalued, then all of a sudden, you know, you're going to have to weigh overvalued, then all of a sudden, you know, you're going to see some pretty significant declines. Stay on the line. We'll talk a bit more off the air.

We'll be right back. So glad to have you with us today on Faith and Finance live here on Moody Radio. We'll be headed back to the phones here in just a moment, but you know, there's more than one way to get your questions in the mix on the broadcast and you can certainly call, but the other is to send it to us electronically.

When you go to slash finance, there's a form there for you to submit questions and we receive questions all the time and each Wednesday we set aside a few moments to tackle a few of those and to help me do that is my producer Amy Rios. Hi Amy. Hello, how are you? I'm good. I'm glad you're back from vacation. We missed you and looking forward to getting into some great questions.

Yes, we have some good ones today. So first off, Mickey writes, I have full coverage auto insurance, but the premiums have gone up recently. Could it make sense to drop the full coverage and just limit it to the liability?

Yeah, you know, I love a good rule of thumb and there is one for this and it's the 10% rule and here's what it says. When the annual cost of the collision and comprehensive coverage exceeds 10% of the car's value. So the annual cost of the collision and comprehensive coverage is more than 10% of the car's value. It's time to drop the full coverage. You also need to be saving for the purchase of your next vehicle at this point and I would start as soon as that car is paid off, but bottom line is yes, there is a point where it no longer makes sense specifically for that full coverage. Well and I tell you, insurance coverage has just gone up so extremely high. I'm just absolutely trying to figure out our insurance right now, so we'll keep that in mind too. Okay, next up there's a couple named Rob and Kathy. They've written, we want to set up a trust for our children, but we're not sure how to begin.

Do you have any suggestions? Yeah, I think the first question is just why you want the trust. I'm not saying it's not the right choice, but just make sure that it is necessary. Typically folks that put a trust in place are trying to avoid probate, so they're wanting to pass outside of probate and or they want to keep the transfer of their estate and assets private. A trust will do that, a will won't. A trust also allows you to set up the procedures for the dispersal of your assets that a will may not accomplish, namely if you want a trustee to control the assets prior to your death, if you're incapacitated or, and this is often the case, if you want assets distributed at certain triggering events, let's say the graduation from college for an heir or you know over time as they reach certain ages, that type of thing. Apart from that, a will can handle the estate distribution, so I'd recommend you hire an estate attorney to talk through this and determine whether or not a trust makes sense and if you decide that's what you want to do and you don't have one, you could reach a certified kingdom advisor for a referral to a godly estate attorney at our website, Okay, so the next, Deanna writes, I recently acquired $35,000 and I'm wondering how I could invest in a way where I could access it quickly in case of an emergency.

Yeah, absolutely. So a great way to set up that emergency fund, which I would say is a target, try to look for three to six months worth of living expenses, is to use an online savings account and that would be where you put it into the savings. Right now they're paying close to five percent with FDIC insurance. I'd go to to find the one that's right for you, but the key is we don't want to invest emergency savings because when you say I want to be able to get to it quickly in case of an emergency, that means our time horizon is potentially very far from it, potentially very short and we put emergency funds not in stocks and bonds and precious metals but savings accounts. Okay, and then finally today Christine says, I want to start saving some money for my five-year-old grandchild. Where would be a good place to put the money so that it will grow? Yeah, I like as long as you're willing to earmark it for college, the 529 education savings. It's a great place to invest money for those little ones. It's very flexible, there's tax think of it like a Roth IRA but for college related expenses and you know you can put away as much money essentially as you want. I would check out to determine which states 529 is best for you. It may not be the one in the state you live in and these plans just got better because of secure act 2.0.

If you don't use it, not only can you get it back pro rata for any scholarships and grants but if there's money left over, as long as it's been in there 15 years, you'll be able to get in over time up to 35,000 into a Roth IRA for the child that he or she can use in retirement you know for anything that was left in the account which was not available previously. So that would be my best advice. Okay, thanks Rob. It looks like we've got a couple more calls to go so let's get back to them. Very good, thank you Amy. Let's head to Cincinnati. Hi Lisa, let's take your question next.

Go right ahead. Well you partially answered it with the last question. Okay. I was calling about, I was calling about online savings accounts. We have about oh I don't know 50,000 in the bank right now and earning like zero interest.

Okay. And we're wondering if you know that would be a place to park that money. It really could be. I mean you know I'm looking right now at and I'm seeing you know four and five star rated FDIC insured banks paying 4.4. I'm seeing one at five, one at 5.05 percent. No minimum balance, no fees and you know so on $50,000 I mean we're talking over the next 12 months you could bring in an extra $2,500. Now that would be taxable but that's a whole lot better than virtually nothing. So that would be the way I would go.

You'd open one of those accounts with one of these online banks again with FDIC insurance so backed by the full faith and credit of the United States government and then you'd link it up electronically to your checking account and then you could just move money back and forth as you need to through their website or smartphone app. You know through the ACH system and that would just ensure that you can have the peace of mind but also get a much better rate of return. Okay and let me ask you too we are I am almost 68 my husband 69 we have like $30,000 for a emergency fund but at this point we're we're debt-free you know the house the cars everything. So is do you and then we have life insurance as well do you think that $30,000 is still necessary? You know I mean I think the question is just what else would you do with it? I mean you could put it at the risk of the stock market and invest it. You know I often will think in terms of how many months worth of expenses you need for the unexpected and so typically we would say three to six months expenses in this season of life a lot of times folks will want six to twelve months worth of expenses. So you know given the $30,000 especially with the $50,000 on top of that if you've got $80,000 you've got quite a bit more than that. So at that point we're thinking about okay we need a little bit of a nest egg for you know if you guys were to need some long-term care for a period of time and that was fairly expensive you know you just want to have that available. So anything beyond you know certainly six months worth of expenses I would say you could start thinking about putting it to work for you. Yes you'd be taking some risk with it but you have the potential to grow it a bit more maybe that's through you know high-yield corporate bonds or government bonds. Now if you said listen we just aren't comfortable taking any risk then that's where CDs and high-yield savings accounts still make sense but if you are willing to take some portion of it and put it you know to work for you you know I think that's certainly an option. Okay and can I ask one more question?

Sure. We are trying to figure out whether like I said we're you know pushing 70 here. We've got the house is paid for but it needs a bit of remodeling. We're thinking at this point maybe it would be up towards 100,000 to remodel but the house is paid for and we're wondering whether I mean this market this you know do we sell do we remodel? We are just up in the air as far as that goes. Yeah you know it's just really challenging I mean I think the question is why are we remodeling if it's to you know be able to get it out someday you're probably not going to get back 100 the whole 100,000 you know if it's for enjoyment then it comes down to there's nothing wrong with that can we afford to do it and where would that money come from and if we're going to have to borrow to do it we've got high interest rates right now and so the cost of the funds is pretty high and especially if you don't have the money to pay for it out of cash so you know I think it I mean it's a challenging environment right now.

Now you could get top dollar arguably coming out of this property if you were to sell it but you're going to have to find something that you would you know be happy with going into and maybe you find something that's smaller that's a little newer that doesn't need the work and you could you know just kind of swap one for the other that would be ideal but obviously buying and selling real estate is not insignificant in terms of the fees I mean you know you could have tens of thousands of dollars spent just in the transaction cost so I think you've got to define what are our goals is our goal to reduce our lifestyle expenses is our goal just to enjoy the property we have and then if it is can we really afford it and just kind of work through a decision-making tree if you will looking at each of those things and making sure that it makes sense financially and that it ultimately you know allows you to accomplish your goals does that make sense though at all? It sure does it sure does and I appreciate your time thank you so much. Absolutely Lisa thank you for your call today we appreciate it. Jay I apologize that we're not going to get to your call today I just don't want to cut you off too quickly but I would love to get you on perhaps first tomorrow so Jay if you stay right there our team will pick up the phone and see if we can get you scheduled to be up first on tomorrow's broadcast. Folks really appreciate you listening today we covered a lot of ground and always grateful to be invited into your stories let me take just a moment and mention before we round out the broadcast today just the importance of this time of year for us here at Faith and Finance Live you know we're headed toward June the 30th just 11 days away why is that significant well it's the end of our fiscal year it's the very end of the year here at FaithFi and as a listener supported ministry it's a really important time for us to hear from listeners with their support so we can reach our goals we're about fifty thousand dollars away from reaching that year end goal we believe we'll do it we're confident in the Lord's provision he's been really good to us this year but if you have benefited from the program and you count on this broadcast regularly maybe it provides some encouragement or practical help for you and you'd be willing to support the ministry we'd certainly be grateful a gift of any amount before June the 30th would go a long way to helping us reach our goals just go to and click give and click give big thanks to my team today Amy and Dan and Jim Faith and Finance Live's a partnership between Mooney Radio and FaithFi we'll see you tomorrow. God bless you.
Whisper: medium.en / 2024-06-19 23:41:12 / 2024-06-19 23:57:28 / 16

Get The Truth Mobile App and Listen to your Favorite Station Anytime