Advantages of Online Banking

Have you heard about the change happening across the US? Learn more at JoinChristianCommunity.com. That's JoinChristianCommunity.com. Membership eligibility required. Each account is insured up to $250,000. This institution is not federally insured. Once upon a time, going to the bank was a regular part of life in America, but online banking has made most trips to your local branch unnecessary. By the way, there's a difference between online banking and online banks. Online banking is something you can do these days with almost any brick and mortar bank or credit union, although features and services will certainly vary from one financial institution to the other. Online banks, of course, have no brick and mortar branches. They're online only, and with the exception of the ATM networks they use, all transactions with them are online. Okay, that's the difference between online banks and online banking, but the reality is that difference is getting smaller and smaller. The online features of brick and mortar banks really do rival anything that online only banks have. Still, some folks are wondering if we simply won't need brick and mortar banks someday.

We're probably a long way from that. People still need services that only brick and mortar banks can provide, like businesses that have to deposit coins and currency. You can't do that online. There are still 77,500 bank branches in the U.S. That sounds like a lot, but it's actually 12,500 fewer than five years ago. As more and more people do their banking online, traditional banks find they need fewer and fewer branches.

You've probably noticed some of them closing in your area. We'll probably always need brick and mortar banks, just fewer of them. So with both online banks and online banking, it doesn't matter where your bank is, and it also doesn't matter where you are. You can do almost everything that needs doing on your computer or smartphone. Now that's convenience. Just don't ever use public wi-fi for your banking or any financial transaction.

It's just too easy for hackers to steal your personal information. Now there's another huge advantage of online banking that few people really think about. If it doesn't matter where the financial institution is, you have the opportunity to select any bank or credit union for your banking needs. You may have chosen a certain bank because they have many branches or even one branch conveniently located along your way home from work. Direct deposit long ago removed the need to stop and deposit a paycheck, but now you can deposit any check with your smartphone. You might ask then, is there really much of a difference between banks? Aren't they all pretty much the same?

Actually, no. Wouldn't it be great to know that your financial institution is supporting Christian values and making a positive change in the world, in addition to providing great service? Wouldn't you want to put people over profit?

Not that profit is bad, but it can't be the only priority. Stewardship is about 100% of what God gives us, not just the 10% in the offering plate. What if you could find and support institutions that are faith-based, whose mission is to help Christ followers live and give more abundantly? Online banking can give you faith-aligned options once you choose an institution that aligns with your values. There are a number of great faith-aligned banks and credit unions available today. One example is Christian Community Credit Union, an underwriter of this program. CCCU offers online banking so they can be accessed from anywhere in the country, and they're just a great example of how our banking decisions can make a positive impact for the Kingdom. CCCU has donated over $6 million to ministry and mission projects in the U.S. and around the world, and they're using banking to leverage the money their members deposit with them to help construct new church buildings, expand ministries, and help Christian business owners thrive. So if you're looking for a faith-based banking solution that aligns with your beliefs and values, I'd encourage you to consider Christian Community Credit Union.

Plus, each account is insured up to $250,000 by ASI. You can find out more at joinchristiancommunity.com. That's joinchristiancommunity.com. By the way, you can find institutions that align with your values in other financial areas as well. In fact, if you'd like to align your values with your investment decisions, we have a whole host of organizations that are underwriters of faith and finance that you can find on our website at faithfi.com.

Just click on the show. That's faithfi.com. All right, your calls are next, 800-525-7000.

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Visit joinchristiancommunity.com. Membership eligibility required. Each account is insured up to $250,000.

This institution is not federally insured. Thank you for joining us today on Faith and Finance. We're taking your calls and questions today on anything financial. The number to call is 800-525-7000. We've got lines open and we're ready for you today. 800-525-7000. You can call right now.

Those lines will fill, but we want to make sure that you get in the queue now so we can get your question on the air. Paul David Tripp says this about money. He says, money is one of God's good creations, but this good thing becomes a bad thing for you when it becomes a ruling thing.

Think about that. When money takes a place that it was never intended to take in terms of competing with first position in our lives for our devotion, well, it was taken out of God's original context at that point. And our goal is to make sure that money stays in its proper context as a tool to accomplish God's purposes. Well, here on this program every day, we want to help you do that as we look through the lens of Scripture at the practical decisions and choices you're making every day.

And so whether those are related to your lifestyle, maybe it's your giving and giving more wisely, maybe it's your debt repayment and how you can become debt-free over your lifetime and even tackle perhaps some credit card debt that's gotten out of control in light of high inflation, or maybe it's your investments, whatever it might be today. Let's talk about it. The number, 800-525-7000. You can call right now. Let's begin in Texas today. Katha, thank you for calling. Go right ahead. Yes, Rob.

Thank you for taking my call. My daughter recently was in an accident which resulted in a lawsuit in which she is going to be granted $250,000. She is 50 years old. She has no savings plan, and she is at a quandary. She's supposed to meet with the lawyers next week, and she's been told they're going to instruct her to take this money in the form of an annuity, which we know nothing about. So how would you instruct her to go forward?

Yeah. Well, there's potentially a lot of commissions to be paid out on that annuity, so you need to really make sure you're seeking counsel from somebody who has no vested interest in this. I think the opportunity here is to obviously have this money managed wisely.

An annuity certainly is one option where there would be either a guaranteed fixed rate of return on it or a variable rate of return depending on the underlying performance of the investment. So those are kind of the two paths for annuities, and then it would grow either on a fixed basis or a variable basis, and then at some point down the road, perhaps in retirement, she could convert that into an income stream for her life or her life plus a spouse, let's say. And the benefit there is it takes away any downside risk. The thing that I would consider here more so than eliminating downside risk is just the fact that she's young. And so she's got time on her side, even at age 50, where she would be able to let this grow for a considerable period of time and have the potential to have more earning power outside of an insurance product because in exchange for that downside protection, she's going to give up some of the upside potential. Now with that, she's going to assume the risk that comes with it. So for instance, as an alternative to an annuity, she could hire an advisor who would understand her goals and objectives, what God is doing in her life, what her values are also, you know, what her needs are now and in the future, and then together establish kind of an investment philosophy, and then actually be the one the advisor to make the investment decisions with, of course, her, you know, clear oversight and communication. And then, you know, she would get the full upside of any growth. The other benefit to that is she'd have full access to the money if she ever needed it. Whereas inside that annuity product, there are going to be some restrictions and perhaps even some penalties if she wants to get to it early.

So I think as an alternative, my preference here would be for her to, you know, interview two or three advisors, you know, find the one that's the good fit, get that money out in a lump sum, not put it in an insurance product, have it managed and invested, but you know, not have some of the limitations and extra fees and constraints that come with an insurance product. Does that make sense? It does, and I do have a question. Do you have a number of where she could fund a trustworthy advisor? I do.

Yeah, it's not a phone number. I direct you to our website. So here's what we recommend, Katha. We don't have in our ministry any advisors that work for us, but what we recommend is the only industry designation in the financial services industry that has to do with biblically wise financial advice. It's called the CKA designation, Certified Kingdom Advisor.

So there's 1,500 of these men and women across the U.S. and Canada. They've met character requirements, statement of faith, experience requirements, they've been trained to bring a biblical worldview, pastor and client references, and then an annual continuing education and recertification process. I would have her go to our website, faithfi.com, click Find a Professional, and she can do a zip code search. I'd interview two or three before she makes a decision.

Faithfi.com and click Find a Professional. Let's go to Chicagoland. Hi, Megan, go ahead. Hi, Rob. Thanks for taking my call.

My mom passed away in 2021. She left money in a trust to each of her children, but she made me the trustee of the trust, and one of my brothers has always struggled financially, and so his is left with special considerations to be given annually no more than a certain amount so that it will last in case he needs it desperately throughout his lifetime. It's created some pretty significant relational stress because he continues to ask. I'm paying his mortgage right now with that trust money, which is more than the annual amount, but I feel like it's going into something that's earning equity for them and has good results for that money continuing to be around for them, but he's also stopped speaking to me because I've said no to the additional requests, and I know I can turn it over to a banker. I'm nervous to do that just because it would reduce the flexibility in case he does need it. I don't want him to be without a home, so that's kind of my dilemma is, will that be better for the relationship, or do I honor my mom and keep trying to just maintain that trust in my own trust and the financial stability for him?

Yeah, I totally get it, Megan, and I think you've laid it out really well. I think you're really thinking through this wisely, and it really comes down to a discernment issue. I mean, I would just, and I'm sure you've already done this, I just make this a matter of prayer. I mean, in terms of the mechanical part, absolutely, you can resign trusteeship whenever you wish. Since your mom's passed away, you'd have to consult the trust instructions to see what the procedure is for changing trustees, and then if there's not one, you'd have to file a petition with the probate court. You'd want to select someone who's obviously very trustworthy, has experience in acting as a trustee to replace you, or you could put a corporate trustee in place, a bank official or an attorney, even another relative.

If it's a professional trustee, you're going to have to add a fee generally one to two percent a year on the assets of the trust. But I think you've got to weigh this damage that it's causing in your relationship with your brother, which certainly nobody wants, with your obligation, if you feel one, to your mom, because she selected you as the next steward. And that, ultimately, there's not a right or wrong decision there. I think you need to pray through that, trust that your mom would understand. She chose you because I believe she believed in your judgment.

And so I think you can have some confidence in that, that if you decide it's best for you to let it go, that she'd be supportive of that, just because the relationship is paramount. But at the end of the day, I think that's the question you need to be praying about. Folks, you know, as we think about our role in managing God's money, it's a high calling. Think about this. You and I, we're money managers for the King of Kings. So we want to get it right.

It doesn't need to be scary, or we didn't have any anxiety around it. We just need to look to God's word, the source of truth. We'll be back with much more just around the corner.

Stick around. Every day, we hear life-changing stories from listeners just like you who see money and possessions as tools to invite more people into God's kingdom. Instead of chasing wealth, you've chosen to embrace God as your source of love and provision. At Faithfi, we're passionate about meeting people where they live and work through our national radio program, app, resources, and website to influence widespread positive change in our culture. Please consider becoming a monthly partner at faithfi.com slash give. We are grateful for support from Soundmind investing in the faith and finance program.

If you have money in a retirement account or just a general investing account, you know the stock market can sometimes seem like a roller coaster, but it is possible to enjoy both profit and peace of mind in investing no matter what's happening in the market. You can see a short video webinar on that topic at soundmindinvesting.org. Since 1990, Soundmind investing has sought to offer financial wisdom for living well. Soundmindinvesting.org. Welcome back.

This is Faith and Finance. I'm Rob West. We're taking your calls today, 800-525-7000.

That's 800-525-7000. All right, back to the phones. Let's round out the broadcast with as many questions as we can get to today.

Let's go to Texas. Bernardo, thanks for your patience, sir. Go ahead. My wife is a self-employer, so she is 51 years old, and she's wondering if it is not too late to get some retirement and which company do you recommend? Yeah, very good.

Very good. What do you think you all could put away each year in total if you had the ability to put as much as you want into a retirement account? I think she could put away maybe like a 2,000.

2,000 a month or a year? A year. So do you think it's too late? No, you know, it's never too late, Bernardo.

Here's the reality. I mean, I get you're sitting there like, wait a minute, we're 51 years old. We'd like to be able to retire someday. We feel like we're behind.

And I certainly understand that. I think the key is just to start now. Wherever you are, start today. And the key to being able to fund a retirement account, we'll talk about what type of account and where to open in a moment, is to dial back your lifestyle. Spend less than you earn. The only way we can fund our long-term goals is out of something called margin. So we have to have something left over at the end of the month. And I realized running a small business is no small feat because she's got to keep it up and running and she's got to market it and she's got to deal with her customers and she's got to pay extra on the way of taxes because she's covering both sides of the self-employment tax.

And then to have something left over is not easy. And yet her ability to do that and your ability to control costs both in her business and in your personal life is really essential to you being able to have something left over at the end of the month. Now, if you can do that, and you're saying you could put away maybe a couple of thousand a year, so let's say she were to put a 200 a month, because of the amount we're talking about, I just use a Roth IRA. So unless she needs the tax deduction, and you could talk to your CPA about that, but either a traditional or a Roth IRA would allow her to put in 8,000 a year, up to 8,000 a year into that account because she's 50 or older. And so I'd open a Roth or a traditional, depending on whether you want to put in after-tax dollars and get tax-free growth, that's the Roth. If you'd rather have the tax deduction now, because you guys are paying a lot in taxes because she's a small business owner, then she put it into the traditional IRA. And then let's say she put in 2,000 this year for 2024, that 2,000 would be excluded from her taxable income for 2024, and then you'd pay tax on it when she pulls it out in retirement. And then I'd open an IRA at Fidelity or Schwab probably, and then you just want to put it in some high-quality mutual funds, either faith-based investing funds, or you could use one of the robo advisors like the Schwab Intelligent Portfolios, and that would be a very low-cost, automated approach to investing that would use what are called index funds that just capture the broad moves of the stock and bond market over time. Does that all make sense, though?

Yes, sir. Now, how much do I need to put to start? Do I need to put a Bitcoin in it or just to start with 100? No, you can start with basically as little as you want. So if you could start with 100 a month, that's enough. And especially with those robo advisors, you don't have typically a minimum investment. So even with $100, you could get started.

And then every time you add 100 to it or 200 to it, it would automatically reinvest it, and it would do it on a very low-cost basis. Okay, so do you have the numbers for those companies? I don't. Are you comfortable on the internet? Yes, I'm comfortable on the internet. Okay, good.

So just type in your search engine, Schwab Intelligent Portfolios, and it'll walk you through all the steps to get started. All right, sir. Thank you so much for you.

You're welcome, Bernardo. Hey, stay on the line. I want to send you a gift. I want to send you a book called The Sound Mind Investing Handbook. I think it'll be an encouragement to you.

It'll give you a little bit more insight on investing from a biblical perspective, The Sound Mind Investing Handbook. Stay right there. We're going to send it to you.

Let's go to Alabama. Hi, John, how can I help, sir? My father is 88 in very good health.

My mom died four months ago. And so my father is wanting to protect his home, which may be $350,000 to $400,000 to give it as an inheritance to my two siblings and me. He has about $250,000 in liquid assets.

And so anyway, the question is, did he go in nursing home in years to come? He's wanting to find out how to protect really both all three kids and he are on the liquid assets, but only he and my deceased mother is on the deed of the home. His main concern is the inheritance on the home. But so my question is about trust. You know, what kind of trust could we do?

And what's the timeframe? Is it five years to be protected if he's in a nursing home? That's my question.

Yeah, that's a great question. So I think the first part of this is really an ethical decision. I think you just need to think through if in fact the state, you know, the government is paying through Medicaid his medical expenses because he's depleted his assets below that $2,000 threshold. You know, the purpose of Medicaid recovery estate recovery is to get paid back.

And all of these strategies would involve you kind of moving these out sets outside of that. And so I think that's just a conviction you need to come to on your own and, and really pray through that. Beyond that, yes, there are opportunities through what's called an irrevocable trust that would allow your father to qualify for Medicaid while preserving assets for heirs.

It's where he actually loses control, which is why it's irrevocable. And I would get with a godly estate planning attorney who specializes in elder care to talk about the options. There is a five year look back period where any money transferred into a trust five years before a person applies for Medicaid will delay benefits kicking in.

So you need to understand that. And that's where the elder care attorney could be helpful. So if you don't have one reach out to a CKA in your city, just go to faithfi.com and click find a professional they could give you a referral quickly to Danville. Brandon, I know you've been waiting patiently. Go ahead, sir.

Hey, thanks for taking my call. My wife and I have a five seven and really an 18 month old as well. And I've broken what I would call generational cycles of poverty. And we are doing well for ourselves. We've got a footing under us. A lot of that knowledge I've come into later in life. So we are trying to be intentional about helping our boys create a foundation that they can build off of financial knowledge and management of money for saving and giving and spending. But we're kind of spinning our wheels and going back and forth on the best way to do that.

Didn't know if you'd have any recommendations. Yeah. You know, a couple of thoughts here. Number one is, you know, more is caught than taught. I mean, Howard Dayton, a former host of this program, talks about being an MVP parent. And for him, that means modeling. What are we modeling? Are we modeling living on a budget? Are we modeling giving generously? Because the way we view money is largely determined by the age of nine.

And so it's a product of our environment. V is verbal communication. What are we talking about with our kids?

And then the P is practical examples. We gave our kids the eating out portion of our budget one month and just watch them realize how quickly the money went. And as they negotiated through where we were going to eat out that month, it was a great learning experience.

So I would start there. Secondly, I want to send you a book. It's called Trusted. It's from our friend Matt Bell, preparing your kids for a lifetime of God honoring money management. We'll send it to you as our gift.

You sound like a great dad, Brandon. Thanks for calling today. God bless you. A big thanks to my team today, Taylor, Devin and Pat. And we'll see you next time right here on Faith and Finance. Faith and Finance is provided by Faith Buy and listeners like you.