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And what is that exactly? Hi, I'm Ron West. It's not about how much or how little you have. Living a Christian lifestyle means you have the right attitude about money. Ron Blue joins us today to explore what the Bible says about it. Then it's on to your calls and questions at 800-525-7000.
That's 800-525-7000. This is faith and finance, biblical wisdom for your financial decisions. Well, it's always a privilege to welcome Ron Blue to the program. Ron's the co-founder of Kingdom Advisors and author of an armful of books on biblical finance. Ron, always great to have you with us. Yes, it is always great to be with you, Rob.
So thank you for inviting me. Well, we look forward to it, Ron, each time. And I'd love for you to weigh in on this. Ron, you'd think that something as fundamental as how a Christian should live with regard to money wouldn't be controversial. But perhaps it is for many.
Oh, there's no question, Rob. You know, you can have poverty on one end and you can have super luxury on the other end. And neither are right or wrong necessarily. It's one, however, that causes terrific controversy. And I think it also causes a lot of frustration in the lives of those who want to be obedient. So what does obedience mean when it comes to lifestyle? That's a big deal.
Yeah. Well, and we can look at scripture and see a whole range. I mean, we saw plenty of people in God's Word that had incredible wealth, people that really were pursuing the Lord and others.
And you might think of the widow's mite that lived very meagerly. In fact, she gave out of her poverty. So what can we take away from that?
Well, it's true. She did give out of her poverty, but it's kind of missing the point in that passage. And Jesus isn't saying that she was righteous because she was poor. But because she gave everything she had, it wouldn't matter if it were a little or a lot.
She gave it all. And that's the real point of that particular passage. It's not an amount and it's not a lifestyle. In her particular case, Jesus determined that it was her attitude and conviction. So that's what really did the issue is, what is my conviction when it comes to lifestyle?
Yeah. And obviously, at the other end of that spectrum is the prosperity gospel. That's not a biblical model as well, is it?
No, absolutely not. A lot of times people use Luke 638, giving who will be given to you, good measure, pressed down, and so forth. But that verse is not about money. It's about forgiveness. And so when you use that verse and equate it to money, you're missing the point. Because the verse right before it, Jesus says, Judge not, and you will not be judged. Condemn not, and you will not be condemned. Forgive, and you will be forgiven. And then you'd say, Okay, give. What? Give forgiveness, and it will be given to you.
So say misinterpret that, if you will, I think. Yeah, very helpful. All right, so then where do we look in Scripture and find the appropriate financial lifestyle for a believer? Well, I always go to 1 and 2 Timothy because Paul is about the only one that talks about lifestyle. And he says in the book of Philippians, I know what it is to have need and I know what it is to have plenty, but I can do all things through Christ who strengthens me. So it wasn't a lifestyle issue. It was, once again, an attitude and obedience issue. He said, Whatever God chooses to give me, I'll be content with that. And he learned how, whether it's a little bit, like when he was in jail, or whether it was a lot, like probably when he was working. So they misinterpret that verse also many, many times.
That's really helpful. All right, so then what are some of those characteristics of the Christian lifestyle? Well, if you take a look at 1 and 2 Timothy, I think you'll find three things. Number one is that you're commanded to provide for your family.
That's one. So what does provision mean? Secondly, it says God has given us all things to enjoy, but it ties it back to giving in that particular case also. And third is to ask yourself the question, Am I content? He says in Hebrews 13, 5, Be content with what you have. So to me, lifestyle revolves around providing for my family, enjoying what God gives me, and living in contentment. And that's, to me, the end of the summary of it all. Yeah, I think that's exactly right.
It would be helpful if he said, Live on 68.2% of your income. He doesn't do that, so we have to go to him in prayer, right Ron? That's exactly right, Ron. Thanks for having me. All right. Thanks for joining us today. That's Ron Blue.
We're talking the Christian lifestyle today. And we're going to continue on right after this break with your calls and questions on anything financial. Call right now, 800-525-7000.
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This is Faith and Finance. I'm Rob West. We're taking your calls today. 800-525-7000. That's 800-525-7000. By the way, you don't have to call, just send an email. AskRobatFaithFi.com.
That's AskRobatFaith, the letters F-I dot com. All right, let's dive in today. We're going to go to Rochester, New York. Raymond, you'll be our first caller, sir.
Go ahead. So I'm in a little predicament that I didn't realize that could happen. The other day, my brother was checking his credit score and I said, OK, well, I don't usually do that. So I checked my credit score and I found a AMEX American Express card on my credit report with a legit account info account number. And it shows the payment history and it says it was opened in 2017. And I had never had any relations with American Express.
I've never filled out an application or anything. Yeah. Yeah. Well, obviously, this is something you want to get taken care of right away. So here's a few steps I would take, Raymond, as you pursue this. Number one is, so you saw your credit file.
Do you know which of the bureaus you got that credit file from? Yes, sir. All three of them show it.
OK, they're all showing it. All right. So that was that's the first step. The next is to go ahead and call American Express. And, you know, you're going to want to let them know that the account needs to be closed and that it was opened, you know, fraudulently so that they can flag it and have it removed. Now, have you already reached out to AMEX?
Yes, I did. I gave them mail. They checked with my social security number, they checked with my name and everything, and they didn't find anything. Also, I gave them this account number that's on here and they don't have any recollection of the account number at all.
OK. All right. So it could just be, you know, something that was reported incorrectly. I mean, it's not uncommon for credit reports to have inaccurate information. And that leads us to step three, which is to dispute the account with each of the three credit bureaus. You can do this online, by phone or by mail. And basically, you know, you would let them know that it's not accurate, that it's not your account. And they're legally required to investigate your claim within 30 days. And then basically they have to either verify it or delete it or remove it. And so, you know, assuming it returns in your favor the credit bureau's investigation, then it would just automatically be taken off. I would probably do two things at that point. Number one is you can add a fraud alert to the credit report if you think identity theft was the cause and that there's a chance the thief could open more accounts. The additional step, and this is key, is to place what's called a freeze on each of your three credit reports, which is going to be make it a lot more difficult for any fraudulent accounts to be opened in your name, because that establishes a PIN number that would need to be provided anytime someone is wanting to open an account in your name, because the lender is going to want to pull a copy of your credit file.
They won't be able to do so without that PIN number to access it, and that could stop them in their tracks. So that would be the steps that I would follow. You've already pulled the reports. Next is to dispute. After that is to, and you could do this simultaneously, place the fraud alert and the freeze.
Does that all make sense, though? Yeah, it sounds, so how do I go about doing that? Is that free to do that credit alert or to do the freeze? Both of them are free, yes, absolutely, and each of the Bureau's websites would let you know exactly how to do that.
It's very simple to do, and you can do that online, over the phone, or through the mail. Also, the FTC, the Federal Trade Commission, has a helpful article about credit freezes and fraud alerts. If you just search in whatever search engine you use, FTC, what to know about credit freezes and fraud alerts, you'll see an article that's very helpful that'll pop up that explains all of these. But basically, you just initiate that with each of the three Bureaus, and there is no cost. Basically, the reason why I called you is because I mean, this is, so that's the best way in order to protect yourself so that if somebody tries to put something on your credit, they won't be able to do that without getting a hold of you first.
Yeah, that's right. So, in terms of something appearing on your credit, the only thing that appears on your credit is outstanding accounts that you have and the status of those accounts, apart from your personal information, your name and your address and your work history and things like that. So, the only way a new account would appear on your credit file apart from a mistake that the Bureaus made, which obviously all three Bureaus are reflecting this, so there's something else going on, is that somebody would be opening an account in your name with your social security number on a fraudulent basis. And that cannot be done without that lender first checking your credit file because they don't want to extend anyone credit without knowing whether you have your credit worthy. The only way to do that is for them to check your credit score and credit file and they wouldn't be able to do that with the fraud alert and or more specifically, the freeze.
So, that's why those are really key in a situation like this. So, you would recommend anybody to do the same thing, to put a freeze and to put a fraudulent thing on your credit report? Yes, certainly if you've had your account compromised, if you've ever been the victim of identity theft, if you've ever had any fraud, absolutely. If not, then you just have to decide whether it's worth the additional hassle because it does create an extra step anytime you try to open an account, open a new credit card, a new bank account, get a car loan, things like that. So, a lot of folks will opt to wait until they have reason to believe there's been some sort of nefarious activity. But absolutely, if you just want to be on the safe side, it's never a bad idea to do it because again, there's no cost to it. In this situation here, I didn't even know it was on there and my credit could have been ruined. Yeah, absolutely and that's why it's so important and I'm glad you raised this question. It's so important that we're pulling our credit files regularly.
The nice thing is that it's more accessible than ever. I mean, most credit cards now are offering free credit scores. You're probably getting emails and alerts all the time from anybody that you do business with offering you a free credit score. If not, Credit Karma offers free credit scores. You can get your credit bureau reports free at annualcreditreport.com.
So, I would say at least three times a year, you need to be pulling a copy of those credit reports from all three bureaus to look for exactly what you've identified, which would be an inaccurate or fraudulent account. Raymond, thanks for your call, sir. We're going to go to Sebring, Ohio. Mike, go ahead, sir. Let's take my call. My question is, I'm getting ready to retire probably like the end of March and my 401k right now, I have 5% being put into it. Should I increase that to 25%, 30% so that I can maximize it and get that money into that 401k at this time, or should I just keep it at a lower rate? I see. Yeah, so you're just wondering, should you front-load it for the year so you've got it working for you longer? Is that right?
Yes. Yeah, you certainly could do that. I mean, it's obviously got to go in through salary deferral, but you do have the option to work with your HR department, your controller, whoever that is, to adjust that percentage. And for 2024, you can put in $23,000 unless you're over the age of 50, and then you could put him in even more. And I would agree, all things being equal, I'd rather have it in sooner rather than later so it can be working for you over the balance of the year. So I'm on board with that strategy.
I think the key is look at what is the total I'm looking to put in for the year and just make sure that by the end of the year you have that much in. That's a good idea, Mike. Thanks for your call. We'll be right back. We'll be right back. Welcome back to Faith and Finance. I'm your host, Rob West. The number to call is 800-525-7000. Let's go to Illinois.
Hi, Megan. Go ahead. So I recently inherited an annuity. My mom passed, and it was a co-inheritance with my brother. And in the paperwork, it just gives two options, one lump sum with, of course, a tax penalty, and the other was a five-year plan with less of a penalty. But there was no option given to just leave the annuity in for the life of the term of the annuity. And I was wondering if that were an option, how would I go about being able to find that out with the company?
Yeah. Well, you really need to contact the company. Have you talked to them at all about your options? I haven't.
My brother has, but he's not gotten an answer. He asked that question about how much time was left and if we could leave it in. All right. Do you know if it was a qualified annuity or a non-qualified annuity? It's a non-qualified annuity contract. Okay.
Very good. Yeah. So typically what happens, and again, you're going to need to nail this down with the insurance company, and I would get your CPA involved in this as well. First of all, there are no inheritance taxes, but you're going to pay taxes on any of the gains as it comes out. But typically, with a non-qualified annuity, you would either follow what's called the five-year rule where it's distributed out over five years, or the life expectancy rule where you would take it out over your life expectancy, and they would want you to do one of the two.
Okay. Is there one that's preferable to another? Would the five-year plan make more sense so I could invest it in another option, or would it matter? Well, a lot of it is going to come down to what your current situation is and also your taxes because if you can spread it out over a longer period of time and you don't need the money, then it continues to grow and you're not going to add to your taxable income. But given that this is a non-qualified annuity, you're just going to pay income taxes on the earnings when they're withdrawn. So a lot of it is going to come down to how much is there in the way of earnings and then how quickly do you pull it out. Now, if you have either a need for the money or you want to redirect it and invest it elsewhere, then that would lean more toward you getting that money out and redeploying it somewhere else. But it really comes down to do you have a need for that income now and or do you want to redeploy it somewhere else? Do you have a better option for investing it that might perform better than what the annuity would bring? Does that make sense?
It does, yeah. I don't need the money. So I guess my next step would be to look to see if my brother and I just took the lump sum if it would benefit us because I don't think, it also meant that both of us have to agree to the same option, I believe. So I guess the next step would be to see if it would benefit us to invest the amount somewhere else versus just leaving it in.
Right. And a lot of it's going to come down to whether you have the option to do the five-year rule, which just means you have to get the entire balance out within five years of the owner's death or you have the ability to do the life expectancy option. But it sounds like in either case, you're probably going to get it out, if not in five years, much sooner than that. But given that you all have to agree, I think, yeah, it's a matter of sitting down and saying, what would we like to do and then getting with your CPA and the insurance company just to find out what your options are, what the tax implications are, and then put that plan in motion. So I know it can get complicated here, Megan, but it sounds like you're making the right steps here. We appreciate you listening to the program and calling in today. God bless you.
To Elgin, Illinois. Hi, Claire. Go right ahead.
Hey, Rob. I'm so excited to hear your thoughts on this. My father gave us a timeshare probably 20 or 25 years ago. We enjoyed it. We don't want it anymore. So once we paid like, I don't know, hundreds of dollars for a company to get rid of it, they didn't get rid of it. Another time we paid $5,000 guaranteed they will get rid of your timeshare or you will get your money back.
And they did neither. But they did refer us to a lawyer and the lawyer said, listen, you don't even have a mortgage on this thing. Just stop paying it. Just stop paying the maintenance fee, which we did.
And it doesn't feel good to me, but I don't know what else to do. Yeah. Well, Claire, this is a tough one. And I know you were excited about hearing one of my thoughts. Unfortunately, I don't have a whole lot of thoughts because it really does come down to contract law here.
And I really can't weigh in on that. You know, at the end of the day, I mean, you inherited this. You know, you wouldn't typically you can't be enforced to accept an inheritance, inherited timeshare. You could refuse to accept it. And the estate would have to pay any fees or penalties associated with stopping payments. But in this case, you know, you all have had it. You've been using it and paying on it for some time.
Given the way by which you came into this, given that it was through inheritance, I realize that's what makes this a bit of an unusual situation, despite the fact that you've had it, you've been using it and paying on it for some time. So now could you just walk away? Ultimately, that is a legal question.
And so I would, you know, you've obviously had a lawyer that's told you that you could stop paying the maintenance fee and there be no recourse. You know, there's the legal side of it. And then, you know, you raise just kind of the conviction side of it where you said it doesn't feel good. And at the end of the day, that's between you and the Lord. So, you know, I would kind of, you know, pray through this.
Number one, you and your husband talk about it, you get the counsel, the attorney, ultimately, you're going to need to make the call, both on the conviction side, as well as whether you have any legal responsibility on this whatsoever. But it's a bit of a difficult situation, just kind of given all the pieces and parts of how you came into it. You know, the other piece that I would say is, and I hate to hear that you've gone through this, but it just underscores what I've heard so many times. And let's let this be a warning to others who are listening today, that there is just so much fraud and folks taking advantage of others in this space, in the timeshare space. And that's why we've never found anyone that we would be comfortable referring our listeners to, to be able to exit a timeshare situation, just because I've never found anybody that can do it realistically. And there's a lot of unmet expectations and broken promises. You guys have experienced that firsthand twice.
I hate to hear that. But let's just let that be a good warning to others, just to really be careful before you go into any of these contracts that promise to do things that really they can't do because you're legally bound, you know, and obligated to these. So I wish I had more definitive advice for you, Claire. Unfortunately, I think you're doing the right things and you need to get the best counsel you can get legally.
And then you and your husband need to pray it through and make that decision. OK, thank you for your help. You're welcome, Claire. Thanks for calling today. We appreciate it. Well, once again, our time went by way too fast. I hope you'll make plans to join us again next time for another edition of Faith and Finance. Faith and Finance is provided by Faith Buy and listeners like you.
