Why Choose Faith-Based Financial Solutions?

This faith and finance podcast is underwritten in part by Christian Credit Counselors.

If you're struggling with credit card debt but don't know where to start, our trusted partner Christian Credit Counselors offers a debt management program that can get you out of credit card debt 80% faster while honoring your debt in full. Contact them to get out of debt today at christiancreditcounselors.org If then you have not been faithful in the unrighteous wealth, who will entrust to you the true riches? Luke 16 11.

Well, there's no question that each and every one of us wants to hear those words in Matthew 25 23 well done good and faithful servant you have been faithful over a little I will set you over much enter into the joy of your master. Many Christians believe that verse is about tithing or perhaps even sacrificial giving and that's certainly true but not just about giving back 10% to God's Kingdom. It's also about how we manage the other 90% that God has given us Deuteronomy 8 1 tells us that God provides every penny we have it reads beware lest you say in your heart my power and the might of my hand have gotten me this wealth. You shall remember the Lord your God for it is he who gives you the power to get wealth God created all things and therefore he owns all things including us Psalm 50 10 and 11 states for every beast of the forest is mine the cattle on a thousand Hills. I know all the birds of the hills and all that moves in the field is mine. God is worthy of honor and glory in all things Revelation 4 11 states worthy are you our Lord and God to receive glory and honor and power for you created all things and by your will they existed and were created and first Corinthians 10 31 teaches that there is nothing to mundane that we should not honor God in its practice.

It reads. So whether you eat or drink or whatever you do do all to the glory of God and Colossians 3 17 teaches whatever you do and word or deed do everything in the name of the Lord Jesus giving thanks to God the father through him. So if God provides all things to us are we honoring him in all things with every financial decision we make are we choosing faith-based financial solutions does glorifying the Lord enter our minds when we decide where to shop invest and even where to keep our checking and savings accounts.

We can certainly avoid shopping in stores or ordering online from vendors with ungodly corporate practices and policies that's easy enough. We can also choose investments that honor God and make the world a better place. That's much easier these days because there are many financial institutions in the faith-based space that can guide us to God honoring investments that don't sacrifice principles for performance.

But what about banking actually that may be the easiest of all a one-time move to an institution that honors God in all of its policies. If that's been on your mind, you're not alone Christian Community Credit Union and underwriter of this program recently conducted a nationwide survey of 1300 professed Christians. It found a strong belief that banking should be faith-based just as much as investing over 30% of respondents considered switching banks in the last 12 months alignment with Christian values was in the top three reasons. Why 60% care deeply about managing their finances biblically to honor God and over 50% said it's more important than ever that their bank reflects aligns and supports their Christian values.

CCCU has taken this a step further and completed another survey where over 250 devoted Christians shared their insights and perspectives on Stewardship. 90% of the respondents said they think about whether their finances reflect what God wants. Still more research shows folks have a strong desire to align their bank with their values.

They just don't know what options are available. The bottom line is that Stewardship is important to most Christians. They take 1 Corinthians 4-2 very seriously and it reads, Moreover, it is required of stewards that they be found faithful. So I would say to you if you're looking for faith-based financial and banking solutions that align with your beliefs and values, consider Christian Community Credit Union. You can find out more at JoinChristianCommunity.com. Again, that's JoinChristianCommunity.com or by calling 800-347-CCCU. All right, your calls are next. 800-525-7000.

That's 800-525-7000. You know, folks, as we think about how you can relate and interact with this program here, there's a couple of ways. Beyond even calling, you can always send us an email, AskRob at FaithFi.com. You can also jump into our community when you visit FaithFi.com. Post a question, answer somebody else's question, and join a community of faithful stewards.

We'll be right back. Have you downloaded the FaithFi app yet? You need to do that today because this is going to make your life easier. Yes, you can manage your money through the in-app envelope feature, but also plan out future goals. I want to buy a house in five years and I'm on track to do that.

Here's also what I like. You can connect with people around the country. It's like social media, but better. Ask a question, get an answer, and share what you're learning about money and investing. So why don't you grab your phone right now and download the FaithFi app? Welcome back to Faith and Finance. I'm Rob West.

All right. We're going to take your calls and questions in this segment. We've got room for several more lines are open. Gabby T. answering our calls today.

She's standing by. The number to call with your financial questions today, 800-525-7000. You can call right now.

Let's go to Mount Dora, Florida. Hi, Linda. Go right ahead.

Hi. Thank you for taking my call. I was speaking with my financial advisor today. I've been trying to live on my Social Security and it's just not possible.

And so I'm going to start. I have an annuity. I'm going to start cashing out. But he recommended this other annuity that would, if I put three hundred sixty thousand cash out my mutual fund and add some cash to it, I would get a six percent interest. I'd get income for life.

Something around trying to figure this out, something around twenty eight thousand dollars a year. Does that sound like a good plan? And it can go up to thirty eight thousand. OK. Yeah.

It certainly could be. I mean, you know, I like the six percent guaranteed. Obviously, you know, we want to match your investment plan with your needs, not taking any unnecessary risk, but also making sure you are provided for and that you have enough income. What is your shortfall per month just based on your other guaranteed income sources? How much do you really need on a monthly basis? Well, I've just been trying to live on my Social Security and I'm not making it. I probably need another two thousand a month. I do have I have some money in the bank and then I have another annuity I could cash out. I have this money market funds, but, you know, they go up and down.

And so I'm not I want something a little bit more stable. Sure. OK. So you said you need another couple of thousand a month. What are you bringing in right now? Just Social Security?

Yes. How much is. OK. And how much are you getting per month there? Well, after they take out the tax and the other medical, it's about twenty five hundred.

And you need about forty five hundred. Well, I think with all the bills and repairs that have been coming up, I do. OK. Yeah.

No, that's fine. I want you to have a good understanding of that. And perhaps, you know, you doing a deeper dive into your spending plan would be a good idea. Now, tell me what assets you have today. What investable assets do you have in total? What do you mean, investable assets? So you said you mentioned an annuity, you mentioned money market.

Give me a kind of a rundown of what you have. I have annuity. I have this money market with two hundred sixty thousand. I have a couple IRAs.

They don't have a lot of money. And let me see what else. What's the value of the annuity? The annuity that I have, let me check. Actually, I have two. One, the value right now is twenty seven thousand. But the other one is, let me see.

And just roughly would be fine, too. Yeah, I'm sorry. I'm just trying to find the total.

Oh, one hundred seventeen thousand. Okay. All right. And how much are you are you pulling any income from either of those? Are you making up that shortfall every month right now out of the money market? I've been just paying out of my savings account. And is savings separate from the money market or are those the same thing? Yes, what I have in the bank. I have a savings account and a checking account. So I've been paying out of that.

Yeah. And how much do you have in savings? A hundred thousand and checking. Got it. And another hundred.

Okay, excellent. Well, I mean, if we put all of this together, you've got about one hundred and fifty thousand in the annuities. You've got another two hundred and fifty thousand. So that's five hundred right there. Excuse me, four hundred thousand between the money market and the annuity and then two hundred thousand on top of that. So you've got about six hundred thousand all in. You know, so if we were to take that six hundred thousand and pull out six months worth of expenses. So let's say your expenses are forty five hundred. And so let's just say you need fifty thousand for six months. So you'd have, you know, let's say you put that in savings. So you've got fifty thousand savings and you were to take that five hundred and fifty that remains and invest it. You know, that should throw off that two thousand a month that you need, where over time you don't have any decrease. Now, in any given month or quarter or even year, you may have a decline. But the idea would be that over time, as long as you're pulling out no more than four percent, which is four percent of five hundred fifty thousand is twenty two thousand.

So that's not quite two thousand a month, but it's close. You know, that should be able to be maintained where you could maintain the principal balance and pull out the income that you need. Which means you still have your five hundred fifty thousand available if you need it down the road.

That's one of the downsides to the annuity is although, yes, they have a place and it is a way for you to transfer the risk from yourself and the stock market to an insurance company for a guaranteed return. You're losing access to the money without surrender charges and penalties. And so I guess what I'm saying is I want you to have plenty of liquidity. So that's why I'm saying let's let's at a minimum put six months worth of your expenses, the total expenses in savings so that you've got that there. But the idea is that it's just an emergency fund.

You're not touching it unless you have something truly unexpected. And then you take the roughly five hundred fifty thousand and I'm I'm totaling up checking and savings and annuity and annuity and money market and IRAs. And we invest that in, you know, probably what did you say your age was?

Seventy one. OK, so at 71, I mean, typically and this is not is just a rule of thumb, you'd probably have maybe 40 percent, 30 to 40 percent in stocks or maybe 30 percent stocks, 10 percent in gold and then the rest in bonds. And that, you know, more conservative portfolio would have some growth factor could allow you to pull out that four percent a year and still at least maintain, if not grow the balance a little bit. And you'd hire an adviser to build and oversee that portfolio for you. Now, you are at the risk of the stock and bond market. You can lose value.

So you'd have to be OK with that. But I'm just saying that's another alternative where you're not locking up the majority of your money into an insurance product where you can't get to it, even though there are benefits and you name the primary one, which is that guaranteed rate of return. So I might just get a second or a third opinion before you make the decision. We recommend, of course, the Certified Kingdom Advisor designation.

You could connect with two or three CKAs there in Florida on our Web site, FaithFi.com. Just click find a CKA and talk about the other scenarios. And you may decide that the annuity is the very best thing for you.

I just want to make sure you know that there's other options. Does that all make sense, though? Yeah. So by putting all this in, I'm not leaving $100,000 out in cash that I would have by putting $100,000 in.

I'd be leaving $100,000 out in cash that I would still have and the rest would be tied up in the annuity. OK. Right.

Yeah. So you'd still have $100,000 in cash, which is good. I think the key is I want to make sure that we're solving for what you really need, which is $2,500 a month. And I want to do that in a way, if possible, where you can still have access to your capital, both what you have aside for emergencies and beyond that. Let's say you needed long term care and that was going to be $10,000 a month or something like that, where you could get to the money if you need it. So certainly I'm not opposed to what you're talking about.

Not all annuities are created equal. So that's why I'd get a second or a third opinion from a Certified Kingdom advisor. I hope that helps, Linda. Thanks for your call.

Back with much more right after this. Stick around. At Sound Mind Investing dot org. Since 1990, Sound Mind Investing has sought to offer financial wisdom for living well.

Sound Mind Investing dot org. If the heavy burden of debt is robbing you of freedom and peace of mind, Christian credit counselors can help. We're a nationwide nonprofit credit counseling organization that has helped over 300000 individuals in the last 27 years get out of credit card debt 80 percent faster while honoring that debt in full. To learn how Christian credit counselors can help you visit Christian credit counselors dot org.

That's Christian credit counselors dot org or call 800-557-1985. Welcome back to faith and finance. I'm Rob West. All right. Back to the phones.

We go to Florida. Hi, Bob. How can I help? Yeah. Thank you, Rob, for taking my call.

I really appreciate your program. Thank you. A friend has been told that she has only about three to five months yet to live due to medical problems. She also told me that she was planning because of that to put her son on the deed to her mobile home in order to make things easier for him to sell it after she dies. And that way I wouldn't have to go through probate.

I remember a previous program where you said that it might not be the best thing to do, but I don't recall details for your reasons. I think it had to do with taxes and the increase in value of the property. Yeah, that's right, Bob. It has to do with what's called a step up in basis that occurs when you inherit the property. The challenge with her just transferring it to her son, which would be a gift, whether it's half or all of the property. Let's say she does a quick claim deed to her son.

She then make a gift to him. That's not taxable because you can do up to 13 million dollars this year over your lifetime. So let's take that off the table. But the real issue is that he now inherits her cost basis. So what determines whether or not there's a capital gain at the sale is the cost basis, which through the quick claim deed, if she gifts it to him, he'll have to go back to what she originally paid for it to determine capital gains. Although if he inherits this, then he would get that step up in basis. So the cost basis is not what she bought it for, but it's the market value as of the date of death. And then he essentially would have no cost base or no capital gain if he turned around and sold it. So there's a real benefit there from a tax standpoint, especially if she's owned it for a long time.

So what's the way around that? Well, there is no TOD deed, which we were talking about with the previous caller in Florida, but they do have something called a ladybird deed, which functions similar in a similar way that would allow it to be transferred outside of probate. So does she have a valid will? And if so, I'd have her reach out to that attorney to talk about, you know, if she doesn't want it to pass through a probate, why? And if that's the case, what could be done? And they may want to consider this ladybird deed.

Okay. And what would be the ladybird deed that is a, I'm not sure if I followed what... Yeah, it's a life estate deed that allows her to maintain control of the property. But when she dies, the property automatically transfers to the beneficiary without going through probate. And you still get the step up in basis. So you get the benefit of the step up in basis, but you don't have to wait for the, you know, probate process for the home to transfer.

Okay. Yeah, that sounds maybe better. I just remember that it wasn't what seemed logical to be part of the deed and it would be deeded over. She thought she'd put both names on the deed, have both names on the deed. But if you put or on there and she died, it wouldn't be a problem.

But I don't know if that really makes sense or not. Yeah, I would get legal counsel on that. But anything he receives by way of gift, which if she owns 100 percent of the property, any portion that's transferred to him prior to her death would be a gift.

He's not going to get the step up in basis on that. So that's why it's best. And again, this is all best discussed with an attorney.

But just in general, it's best if he inherits this property and there are ways for him to inherit it in a more efficient manner if she's concerned about the probate process. Okay. I appreciate it. Very good, Bob. Thanks for your call today. To Lorraine, Ohio. Hi, Frank.

How can I help? Oh, great. Thanks for taking my call. I inherited seventy two thousand dollars. I'm trying to figure out what I should do with that. I owe like twenty five thousand dollars on my house. All my cars are old. I have to probably replace one.

And then I have a daughter, Scott, probably another three years of college that I have to pay for. Yeah, very good. So you said seventy two thousand is the inheritance? Yes.

Okay. And what is the interest rate on the mortgage? It sounds like it's probably pretty low. Yeah, it is. It's like four. I think it's about four percent.

Yeah. So, I mean, I would start with those things that would result in if you had to borrow for them a higher interest rate. So obviously, if you went out and bought a car and you couldn't pay with cash, you know, apart from using some of the inheritance money, that interest rate is going to be at least, you know, probably close to double what your home interest rate is. The same would be true, obviously, with the college if you had to borrow. Now, the nice thing about you being so close on the house is, you know, it's one thing to put money against the house and you don't quite pay it off. So you still have the same mortgage payment. The benefit you have here is if you knock out that twenty five thousand now, whatever that payment was, you free that up every month. So you're now putting more in savings every month. But I would probably start by just kind of, you know, praying through what are our values and our priorities?

You know, do we have any giving goals out of this? And then beyond that, I would look at what would result in the highest interest rates, probably going to be making sure you get the college paid for. So you could, you know, look for maybe we go ahead and set aside a year's worth and then we set aside a portion to buy the next car. And then the rest, you know, if we can pay off the mortgage, that's great, because then, you know, we could take that and begin using that to fund college. If not, we may want to hold off on the house because it's the lowest interest rate, you know, and maybe we're setting aside a couple of years or of the of the college or even the whole thing. And then the car on top of it and then just keep paying the mortgage out of current cash flow. And when you ever you know, when you have surplus, maybe you're making an extra payment or something just to accelerate it.

But I think if you're going to have to borrow for either of those two other goals, college and the car, then those are probably priority. Does that make sense? Yeah, that makes perfect sense. Thanks for your call today. We appreciate it. To Alabama, Anniston. Hi, Penny.

Go ahead. My sister and I jointly own a Florida Times share. She wants to buy my half.

Will I owe tax and how much? Yeah. So she wants to buy it. So it is a personal capital asset. And so the sale is reported on Schedule D with your capital gains and losses. And then the gain would be income.

So you'd want to look at, you know, what is the gain that you would have on that, you know, when you sell it? And then that would be reported on Schedule D. So what I would do is connect with a CPA there in Anniston. Penny, anytime you have something out of the ordinary like this, you just want to make sure you get good professional counsel. And we certainly wouldn't want a tax liability to catch you by surprise.

So I'd reach out to a CPA there in Anniston and go over the details. Thanks for your call. Well, once again, our time went by way too fast. But tune in next time and we'll do it all over again. Before we go, I'd like to thank our incredible production team, Amy, Devin, Jim, Robert, Brandi, Rob and Ben. Couldn't do it without them. Have a great rest of your day and I'll see you again next time for another edition of Faith and Finance. Faith and Finance is provided by FaithFi and listeners like you.