Many people are using the FaithFi app to help provide the wisdom, community, and money management to stay on track, financially speaking. To date, over 37,000 members are using its digital envelope system, participating in our community forums, and engaging in virtual workshops. And one of the most convenient features is the ability to keep all your accounts in one place for an easy-at-a-glance view.
You can choose from one of three options, depending on your management style, and it's available on desktop or mobile. Go to faithfi.com and click app to get started. Carolyn Kolupka joins us today for a peek inside, and then we go to the phones for your questions at 800-525-7000.
That's 800-525-7000. This is Faith and Finance, biblical wisdom for your financial journey. Well, it's a pleasure to welcome Carolyn Kolupka to the program.
She was a longtime senior producer at Crown Financial Ministries, where she worked closely with Larry Burkett for many years. She's now a frequent contributor here at Faith and Finance and the author of our new four-week study, Rich Toward God, a study on the parable of the rich fool. Carolyn, welcome to this side of the microphone. Rob, thank you. I'm glad to be here. Carolyn, the historical context of the parable of the rich fool is fascinating, and I appreciated how you pulled this out so well in the Rich Toward God study.
I'd love for you to set that stage for us. Well, Rob, the year is 33 A.D. It is the third year of Jesus' ministry. It's an intense time, both politically and spiritually. Rome still has Judea under its thumb.
There's an undercurrent of unrest. At this time, Jesus is walking to Jerusalem for the last time, and he's probably the only one who knows this. He's got a crowd of thousands following him at this point, because he's been teaching with an authority that the scribes and Pharisees just don't have. So people are impressed by his miracles. They've been fed spiritually and physically, and he's been warning them about judgment to come and what to do about that. And then out of nowhere, so to speak, someone steps out of the crowd and asks him to solve a family fight about inheritance. Well, it makes this particular conversation pretty poignant, and I know we're going to unpack all that's going on here.
That's helpful, though, as background. So let me read this passage, and then I'm going to ask you to unpack it a bit for us. This, of course, comes from Luke 12, verses 13 to 21. Someone in the crowd said to him, And he said, I'll tear down my barns and build bigger ones, and there I will store all of my grain and my goods. And I will say to my soul, Soul, you have ample goods laid up for many years. Relax, eat, drink, be merry. But God said to him, Fool, this night your soul is required of you, and the things you have prepared, whose will they be?
So is the one who lays up treasure for himself and is not rich toward God. Now Carolyn, why is this passage just as important for us today as it was 2000 years ago? Rob, Jesus' teaching is timeless because he always goes to the heart of the issues, and the heart of man has not changed since the beginning of time. So we need the answer to our heart problems as much now as they did then. Just like the rich man in the parable, we try to satisfy ourselves with material things. We accumulate, we protect our stuff with bigger houses, bigger storage units, bigger IRAs. So we just need to fix our own hearts just the way they did then.
Yeah, that's exactly right. I'm afraid we can actually redeem greed if we're not careful in the name of the American dream, and that was clearly not God's intent. Now, all of this leads to this big question at the end of that passage, Carolyn, that you addressed so well in the study. What does it mean to be rich toward God?
Give us some of your thoughts on that. Well, ultimately, it means to make God my treasure. So unlike the rich fool, we are supposed to desire God ahead of money, possessions, influence, success, those things which we choose to love, because those things don't last.
They are perishable. The rich fool didn't recognize God's authority or give him credit for his blessings, and he suffered the consequences. But when God is my treasure, I'm free to use his resources to serve others instead of myself. That's very well said.
We've got just about 20 seconds left. How can this study be helpful in encouraging God's people? Well, the study offers questions that lead us down the road to answering the question, what satisfies my deepest needs? Where can I find abundance? Am I rich toward God? And if you're not rich toward God, it leads you to how you can get there.
Yeah, it sure does. Well, Carolyn, thank you for your efforts on this and the incredible work you did and being its author. We'll have you back again real soon. Thanks.
I look forward to it. That's Carolyn Kolupka, author of the new FaithFi study, Rich Toward God, a study on the parable of the rich fool. You can find it at faithfi.com. That's faithfi.com.
We'll be right back. What's most important to you when it comes to choosing your financial advisor? Someone who's aligned with your biblical values?
How about someone who will take the time to explain your options? Certified Kingdom Advisors are professionals who meet high standards in competence and integrity and have been trained to offer biblical financial advice. To find a Certified Kingdom Advisor in your area, visit faithfi.com and click Find a CKA. If you enjoy this radio program, you're going to love all of the many different resources waiting for you at faithfi.com and the FaithFi app. You'll find powerful wisdom, free podcasts, articles, videos, and more from leading voices such as Randy Alcorn, Howard Dayton, Ron Blue, and our own Rob West.
Grow in wisdom and knowledge by connecting with a community of thousands of Christians driving to be good and faithful stewards at faithfi.com or by downloading the FaithFi app. Welcome back to Faith and Finance. I'm Rob West. All right, it's time to take your calls and questions today on anything financial. The number to call with lines open is 800-525-7000. That's right, you can call right now, 800-525-7000.
Hey, before we dive into your questions today, this makes some headlines today. Can you handle an unexpected financial emergency of $1000? Well, a new bank rate survey shows that only 44% of Americans could meet that financial hurdle without borrowing. And even though that's a one-point improvement over last year's survey results, a majority of respondents still would go into debt to meet that crisis. Two-thirds of the 1000 people surveyed said they worry about covering monthly expenses if the primary breadwinner was laid off. Now, why aren't folks saving more? Well, 63% blamed high inflation for their inability to put money in the bank. And bank rate is recommending a three-step process to prepare for a financial crisis.
These are things we've been talking about a long time, but they really are the building blocks of financial stability. Number one, calculate how much emergency savings you need. We often talk about three to six months of expenses being ideal.
If you don't know what you're spending over a month's time, you've got to start there. Second, open that account specifically for emergency use. I would set up an automatic transfer to that account, and I generally recommend we use an online savings account. That way you can get at least a reasonable rate of return right now. You can get up to 5% on high-yield savings with FDIC insurance and then link it to your checking account. That automatic transfer every month is going to allow you to budget that into your plan so you can start building up that emergency fund and don't spend that on other things. So, this is really important.
We need to be able to cover the unexpected. And by the way, if you don't know what you're spending on a month's basis, well, download the Faithfi app. Our track-only option is the kind of least amount of work on your part because you can automatically download all your transactions.
It'll automatically categorize them, and at least you can see what you're spending on a monthly basis so you can start to work into your spending plan and your budget. You can download the Faithfi app in your app store. Just search for Faithfi, or you can get it on our website at faithfi.com and just click on the app button. All right, we're going to head to the phones. We've got some lines open. We're ready for you. Whatever your financial question is today, give us a call at 800-525-7000. You can call right now. All right, let's go to Boca Raton. Hi, Marilyn.
How can I help? Hi, I'm inquiring about a reverse mortgage. I don't know the details. I had been told by a friend that you had to have a certain value in the home before they would do it. My home is around $200,000. Okay, and do you owe anything on the home? No.
Okay. Yeah, it's really about the minimum equity that you have to have. So generally it's 50% equity to qualify for a reverse mortgage, meaning if your home was worth $200,000, you couldn't owe more than $100,000 on it, and you have to be at least 62 years old. What is your age? I'm older.
Okay, very good. So yeah, you would qualify then because you've got 100% equity because you own your home free and clear, and you're at least 62 years old. Now, I would consider a reverse mortgage a planning tool, which means it can be used in some cases very effectively, in other cases not so much.
You're obviously completely debt-free. That's a good thing, and a lot of our listeners, and I would certainly affirm this, really have a conviction to get out of debt and stay there. A reverse mortgage would allow you to systematically pull that equity back out, either as a line of credit, so you could tap on it if you needed it. Let's say you needed long-term care down the road and you didn't have the money to pay for it. Well, at that point, if you sold the house, then it wouldn't be an option, but if you kept it, you'd have the ability to pull out some expenses for maybe in-home care or something like that. Other folks will take a monthly income from the reverse mortgage, so a check every month, and that's going to systematically pull the equity out of the house. You'll, of course, pay interest on it and fees, but it's a way to create some income because often in this season of life, and this may be where you find yourself, Marilyn, we're really cash poor, but we're sitting on this major asset that is our home.
We want to stay there. As long as you have the ability to pay the taxes and the insurance, you plan to keep it, then it's a way to systematically pull that equity back out, which allows you to have some cash flow, some income that, alongside Social Security, may help you meet your obligations and have a better quality of life. The nice thing about the reverse mortgage, and this is one of the key differences with a reverse mortgage or what's often called a home equity conversion mortgage, that makes it different from a traditional or conventional mortgage, is that you're not personally guaranteeing it. The government is, and so with a reverse mortgage, the collateral for the loan is never going to be, or the balance is never going to be more than the home will satisfy. What I mean by that is you can't pull more out than you have the ability to pay back through the sale of your home, either when you sell it or it's sold by your estate after your death. If it ever grows beyond what your home is worth, the government would step in and pay that. That's not the case with a conventional mortgage. Normally, you're personally guaranteeing it, so if there's a balance left over after the home is sold, you are then responsible for that. So that's a big difference, but give me just a quick understanding, Marilyn, of why you're considering a reverse mortgage and how you think it might help. Because I'm just living off of a little income in my Social Security. What's this about the government if I didn't quite understand that part?
Yeah, let me try to make that a little simpler. So with a conventional mortgage, so a typical mortgage, you're personally guaranteeing the loan, which means if the house, when it's sold, doesn't sell for enough to cover the balance on the mortgage, then you're personally responsible. With a reverse mortgage, that's not the case. The only collateral that is there for the loan is the home itself. So for instance, let's say they pay you a monthly check through the reverse mortgage and you live to $140, and they pay you more than your home is worth when it's sold. You're not responsible for that. The government is.
So you don't ever have to worry about owing more to the reverse mortgage company than the value of your home when it's sold. Are you comfortable in the internet, Marilyn? No. Okay, all right.
Let's do this. You stay on the line, we'll get your information, and I'll get somebody in touch with you to maybe give you a little bit more explanation and help you understand exactly what you need to know. It could be a great tool, again, for those folks who can keep their property insurance and homeowner's insurance paid. They want to stay in their home. They need a little bit of extra income.
This is certainly a way to accommodate that without you having to sell it or go out and get a part-time job in this season of life, as you said. So, Marilyn, stay on the line. Our team will get your information, and I'll get somebody in touch with you.
To Fort Lauderdale. Hi, Mary, go ahead. Thank you for taking my call.
My question is, is there any way I can put an alert on my inherited property? Yeah, let's do this, Mary. Unfortunately, your line, we can't hear you clearly, but I want to hear your question.
I think you're asking about an alert for a piece of property related to your title, but let's do this. Our team is going to make sure we get that line cleared up so we can hear you nice and clear. We're going to take a quick break when we come back. We'll come right back to you and get your question answered.
And then, Jody, coming your way, Kara, you as well. Plus, we have three of our ten lines open right now at 800-525-7000. If you have a financial question today, we'd love to hear from you. Folks, we want to help you see God as your true treasure and money as a tool. We'll do that next right after this break.
Stay with us. their clients, peers and community. For more information, visit Kingdom Advisors dot com.
That's Kingdom Advisors dot com. What if your everyday purchases could support biblical causes with the all new cash rewards visa card from Christian Community Credit Union? A portion of every purchase goes to ministries that spread the gospel, combat human trafficking and protect vulnerable children. Plus, earn unlimited one point five percent cash back. Visit Join Christian Community dot com. Membership eligibility required. Each account is insured up to two hundred and fifty thousand dollars.
This institution is not federally insured. Great to have you with us today on faith and finance. Unfortunately, we were not able to get Mary's line cleaned up. Well, or maybe so. Let's see. Mary, do we have you there?
I am here. OK, that sounds better. All right.
Go ahead with your question. OK. The question is, is there any way I can place an alert on inherited property, which is land, if someone tries to sell it or if they're trying to use it for some type of comatose? Yeah.
Yeah, it's a great question. You know, we hear more and more about this, especially with these products that claim they can protect you if someone tries to file a fraudulent deed on your property. We don't recommend the that title insurance or that, you know, that claims to lock your deed. You know, typically what I would recommend is that you contact the county deed office where your property is located.
For more information, you might be able to do that online and ask them if they have an alert system that's free, because that would be the first option that I would look for. And more and more counties are offering that service where if there's any kind of change to the deed, you are alerted. Now, they may not, especially if it's in a rural area. The worst case scenarios is if someone were to file a false deed and take out a loan on the property, no lender could foreclose because it's a fraudulent deed and the foreclosure wouldn't stand up in court.
It's still fraud at the end of the day. So the lender would be on the hook for the money, not you. So in my mind, the likelihood that that would create even a hassle for you is low enough that it's just not worth paying somebody to, quote unquote, monitor the status of your deed.
But again, I would contact the county deed office and just see if there's any option that they might offer as a courtesy to provide an alert to you. Does that make sense? Yes, it does. Thank you so very much. All right, Mary, thanks for your call today. Glad we got you on.
Eight hundred five two five seven thousand. We've got two lines open. Let's talk to Jody in Chicago.
Go right ahead. I have a account at Fidelity and it's a cash status now because I lost so much money years ago during a pandemic. So it's just sitting in cash. I will be 71 March 31st. And I want to know when is the RMD that I have to take yearly? What is that about?
Yes. So you will need to take your first required minimum distribution, Jody, in the year you turn 73 since you reached the age you are now after or since you'll reach 71 after December 31st of 2022 because you're turning 71 this year. So what would typically happen is your plan administrator or custodian would notify you in writing of the amount you need to take out. And you want to make sure that you do because the penalty is pretty high. It's 25 percent of the amount you needed to withdraw.
So you want to make sure you do it. You have for the first year of an RMD, you have until April the first of the following year. But then it'd be December 31st of each year. And the IRS publishes a table that basically says the amount you need to take. And it's a function of your age and your balance on the account that will determine the required minimum. But because you're turning 71 this year in March, you won't have to take it until you're 73.
And you can take it as late as April of the following year. This money was in an IRA account and I took it out and just sitting in cash because so much money was lost. So that's pertaining to also the money that's sitting in cash right now. Yeah, it really doesn't matter what investments it's in. So it could be in stocks, bonds or cash. As long as it's inside either a 401k or an IRA or another pre-tax retirement vehicle, it's going to be subject to those required minimums.
Okay. And this is something as a minimum that has to be taken yearly. It has to be taken. And they would notify me how much based on what's in the account that has to be taken down. That's typically the way it works. But I would make sure that you are proactive on this.
Don't wait for somebody to tell you. And when you turn 73, it's going to be due up until April 1st of that following year and then December 31st each year. But make sure you work with your CPA. If you use a tax preparer to calculate that amount, get it out of the account on time because you don't want to pay that penalty. The other thing you may want to look at is if you don't need that money and you're doing some giving to your church or other favorite ministries or charities and you're doing that out of cash, you could do your giving out of the IRA. But it would also satisfy that required minimum.
It's called a qualified charitable distribution. So that might be something to look at as well when that time comes. Okay? Okay. Thank you so much. You're welcome. Thank you, Jody. Appreciate your call to Alabama. Hi, Kara. Go ahead. Hi.
Thank you so much for taking my call. So I'm a newlywed. I'm 22 and my husband and I are debt free. But the way we are debt free is we built a tiny house.
And he's in his last year of college. So we have that expense too. But currently, we don't have a mortgage, no car payments, no student loan.
But we are wanting to start looking at saving more for a house to grow our family in the next year or two. And we're both from families. You know, my mom did her best with financial literacy, but still, you know, we both watched our parents struggle growing up.
And so we're just kind of scratching our heads trying to figure out the best steps to take, I guess. Yeah, boy, I love what you're talking about here, Kara. And you know, you all are doing it right. I mean, you're debt free, you're living modestly.
And that's just really critical. You know, as you look at your finances, obviously, your ability to save for that house is going to come out of margin. So we take a step back, we look at our values and our goals. And we talk about where God is taking us and how money can be a tool to accomplish that. And then we set up a spending plan around whatever lifestyle we believe God has called us to, of course, living within our means.
But our ability to live under that, meaning having some margin or some cushion leftover is vital, because that's what funds our goals, whether that's saving for a house or getting out of debt or, you know, increasing our giving. So do you all have any margin at the end of the month just based on your current budget? We have about $500 to $600 each month left over.
Okay, $500 to $600. Yeah, so I mean, the key there is I think just set up a separate savings account and just start putting that aside. As long as you've got that emergency fund of three to six months expenses, then the next goal is just to save for that down payment.
And so set up an automatic transfer to a separate savings account just for that home down payment. Let's talk a bit more off the air, Kara. That's going to do it for us. Grateful for my team.
Lynn, Amy, Tahira, Jim, couldn't do it without them. Thank you for being here as well. We'll see you tomorrow. Bye bye.
