A Movement of Faithful Stewards With Chad Clark

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to further his kingdom. Chad Clark is with us today to talk about a movement of faithful stewards that you can join. Then it's on to your calls at 800-525-7000.

That's 800-525-7000. This is Faith and Finance, biblical wisdom for your financial journey. Well, it's always a pleasure to have Chad Clark on the program. He's the executive director here at Faithfi where he's always making sure we're on mission and have the tools to carry it out. Chad, great to have you back.

Happy to be back. So, a movement of faithful stewards. That's a big idea, Chad.

Tell us what that looks like, Chad, and what we're trying to do. Well, it really has been a movement over many years. We have a lot of listeners that go all the way back to Larry Burkett in the 80s and 90s, then over out to Howard Dayton and now to our very own Rob West. It's just been incredible to see how many people have committed to the stewardship journey. And we're seeing growing momentum of Christians who want to be good and faithful stewards of the resources God has entrusted to them. And that's one of the main reasons we rebranded the ministry from MoneyWise to FaithFi earlier this year.

You know, we recognize it's not just about being wise with money. It's about our faith influencing our money decisions. Here at FaithFi, our mission is to equip Christians to integrate, that's the key word, their faith and financial decisions for the glory of God. And that integration, like I said, is so critical because we're often tempted to separate the two.

We've got our Sunday morning faith, but then we go Monday through Saturday living as if God doesn't have any influence or any say in our lives. And here at FaithFi, we believe that the faith and the financial integration is absolutely critical. And that it's our faith that actually influences our financial decisions.

And that's really well said, Chad, and that's not always easy. Of course, among our listeners and users of the FaithFi app, there's a lot of questions out there. There's a growing sense of fear and anxiety with wars and rumors of wars, as well as economic and political uncertainty. Now, there's a lot of other financial resources out there trying to provide insights and solutions, but many of those are what we would call worldly advice. Yeah, I think, you know, understanding what worldly advice looks like is it's really focused on us with little to no regard for God. And that's really where FaithFi, where we differentiate ourselves, is we want to replace the lies of the world where it's really about just our comfort, our security. It really becomes self-centered and replace those empty promises with the truth of the gospel. Our vision is to redeem God's design for money and to see people come to view God as their ultimate treasure.

I'm going to just say that again because I just love this so much. Our vision here at FaithFi is that we redeem God's original design for money so that people would come to see God as their ultimate treasure. Because here's the key thing, Rob, when our heart treasures God above everything else, our financial decisions simply become an expression of who we are in Christ as we seek first His kingdom and His righteousness.

And you were talking about uncertainty. And it's through faith that we navigate that uncertainty, whether it's preparing for the future or the financial decisions that we make every day. And that's why FaithFi is here, is to help guide people with practical biblical wisdom and tools and resources to help you steward what God has entrusted to you. Yeah, and what's so exciting is we're seeing this incredible movement of faithful stewards that love God, they love their neighbor, and they're making wise decisions with the money God has entrusted to them. Now, I know that's an exciting vision for our listeners, and many of them want to get involved in that.

How can they do that? Rob, that's a great question. And here on Giving Tuesday, one of the best ways you can get involved is by supporting FaithFi financially. We're in our end of year fundraising campaign, and we're just really excited about what we're working on and getting ready to launch in 2024. We are getting ready to launch a brand new Bible study series in 2024 that's going to help cultivate your heart to be positioned to see God as your ultimate treasure. We're working on a brand new version of the FaithFi app to make it even easier to manage the resources God has entrusted to you, and we are looking to reach even more people with this incredible stewardship message. All you have to do is go to faithfi.com slash give and join us on this journey. That's awesome, Chad. Thanks for stopping by, my friend.

Thank you. Well, it's Giving Tuesday, folks. If you'd like to help us reach our end of year giving goal, it's 250,000.

You can help us do that by heading to faithfi.com and click give. All right, your calls are next. 800-525-7000.

800-525-7000. We'll be right back. 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? FaithFi is privileged to be on a remarkable journey with you, providing practical advice and biblical wisdom, helping individuals and families align their faith and finances. Our mission, equip Christians to integrate these decisions for the glory of God.

Would you consider supporting our expanding outreach to help others? Give your financial gift at faithfi.com, and we'll send you a copy of the new book entitled Leverage Using Temporal Wealth for Eternal Gain as our thank you. That's faithfi.com. Welcome back to Faith and Finance.

I'm Rob West. The number to call is 800-525-7000. Now, before we get to your calls, I want you to know that FaithFi is here to help guide you with practical biblical wisdom and tools. Every day, we share resources to help you steward what God has entrusted to you. From now through December 31, we're offering the new book entitled Leverage Using Temporal Wealth for Eternal Gain with a Gift of Any Amount. Give that gift right now by going to faithfi.com. That's faithfi.com. All right, back to the phones we go.

To Florida. Hi, Mary Ann. Thanks for your patience. Go ahead. Thank you, Rob, for taking my call. I do appreciate your ministry.

Well, thank you. I am retired and also have a will in place, and my children, my daughter was talking to her financial planner and telling me that possibly I should put a ladybird deed in my will, and I wanted to know what you thought about that. My home is worth quite a bit.

I live on an acre. It's worth probably over $500,000, and it is, of course, paid for. And I'd like your comments on that if you could.

Okay, yeah, very good. It's very similar to what we also call a transfer on death deed, also what's known as a life estate. Those are somewhat interchangeable. There's some differences with each of them, but essentially a ladybird deed allows what's called a life tenant to live in a property during their life, so that would probably be you in this case. And then upon the death of the life tenant, a second party, who's known as the remainderman or the beneficiary, and there could be more than one, inherits the property. So when the property is inherited through a ladybird deed, the beneficiaries receive what's called a stepped-up tax basis, which that's a benefit from a tax standpoint because your cost basis on that property is what you paid for it. And that, if you were to sell it, would determine how much capital gain you would pay. Now, because it's your primary residence, you may not have to pay any capital gain.

There are certain exclusions. But if somebody else were to be gifted this property, they would have your cost basis, and then they would pay taxes on it. But with the inheritance of the property through a ladybird deed or what's called a life estate, they would get the property, but they would get the stepped-up basis, so the basis for the property to determine taxes would be stepped up to the market value as of the date of death. The real objective here, why folks use these, is that they're trying to pass the property outside of probate, so it passes efficiently and effectively, so that there's not any delay on it or added costs, that kind of thing. It can be a very effective tool, and I think if you've decided who you want to receive the home, this type of ladybird deed or a life estate or what's often called a transfer on death deed, which is not available in every state, could be a great tool to make sure that this property is passed efficiently, but retaining all the tax benefits of inheriting a property. So I think your next step would be to visit with an estate attorney who could advise you on exactly which of these is best and then put it in place. You'd file that with the county records office, the new deed, and then that would be in place and it would be a great part of your overall estate plan. My only question to you is, after that, if I would put this in place, if I would decide to sell it and move, could I still do that? Yes, absolutely, and that's one of the benefits of the ladybird deed is that it does allow you as the life tenant to both revoke it at some point, take it back, and it allows you to get a mortgage on the property if you ever wanted to do that without the consent of the remainderman.

So yes, you'd be able to revoke that ladybird deed and then you could sell the property at that point. Well guess what, that sounds wonderful and marvelous, and thank you so much. And I think your ministry is fantastic, I listen every day. Well I'm so glad to hear that, that's a real privilege and an honor to hear you say that, Mary Ann.

It's our desire to be an encouragement, to be hopeful, but to point you back to the Scriptures as you think about this high calling you have of managing God's money. So thank you for that encouragement, it means a lot. Rob, thank you so much and God bless you, babe. And may the Lord bless you as well, have a wonderful weekend. Boy, that was delightful, she's sweet.

To Michigan, Dennis, go right ahead. Yes, Rob, I have bought three rare coins from the U.S. government, I'm wondering what you think of that as an investment. Yeah, you know, I mean there's plenty of folks that really like these, I mean investing in collectibles that can increase over value can provide significant gains in some cases, there's of course no guarantees, a lot depends on the price you pay when you purchase the coins and then the price you accept when you sell them. You have to know what you're doing and you need to have some people that you're buying from that will give you a fair price based on the numismatic value of these coins. Now it's quite different than just buying the precious metals because when you're buying the precious metal it just comes down to what is the spot price which is readily available and then what am I paying as a premium over that to make the purchase. With the rare coins it's completely different because it's not just the underlying value of the metal, it's the coin itself and how rare it is and what value is placed on it by a numismatist that could give you an appraised value for it. So it's not an area that I have expertise in so therefore I would never go into that but it's certainly something that you can learn a lot about, you could start small if it's something you enjoy and you find a trusted dealer who can help you buy and sell these and where you understand the appraised value and what you're getting into.

I don't have any problem with it, I think it's just one of those things where it takes some time and expertise in order to do it right so that you truly can buy something that you can appreciate over time. Does that make sense? Yes sir. Thank you very much. You're welcome.

I think at the end of the day I would probably keep this a relatively small portion of your overall investment strategy unless this is an area you really want to dedicate a lot of time and energy to. Dennis, thanks for calling today, we appreciate you being on the program. To Twin Lakes, hi Mike, go ahead. Hi, thanks for taking my call.

Sure. So I have about $30,000 currently in I-bonds. I don't have access to all of that until March of 2024. And with the percentage of I-bonds going down, I'm wondering if it would be a good idea to take those out, I'd be under the five years, to take those out and put those into CDs or any other avenue that you would suggest. My time horizon with that is we're looking to purchase a house but not until the summer of 2025.

Got it. Yeah, I like that a lot because think about it this way, on the portion where you're paying, and maybe it's all of it, the three month penalty, if you think about your rate for the year, you're getting the blended rate of 4.3 and 6.8 probably, so somewhere around five and a half, and then you're going to get back three months at the 4.3. I think it's still worth you getting that money out and then redeploying it in a CD. It's been a great investment while you held it, but now it's time to move to something that's going to give you a little bit more yield.

That rate's coming down even further as that composite rate reflects the work the Fed has done to bring down inflation. So yeah, I like the idea of you pulling that money out when you can, redeploying it. I think a CD, given the time horizon you're describing, makes sense. Thanks for your call.

We'll be right back. For more than 30 years, they've been helping Christians reach their financial goals with step-by-step guidance for investors at every stage, from those just getting started to those getting ready for retirement. Through scriptural principles and practical suggestions, SMI offers financial wisdom for living well. More information, including the short video webinar on profit and peace of mind no matter what's happening in the market, is available at soundmindinvesting.org. As the leading advocate for the Christian financial industry, Kingdom Advisors serves the public by promoting the integration of a biblical worldview across every aspect of the financial services industry. And we serve a growing network of thousands of Christian financial professionals, equipping and empowering them to carry biblical financial wisdom to their clients, peers, and community. For more information, visit kingdomadvisors.com. That's kingdomadvisors.com.

Welcome back to Faith and Finance. I'm Rob West, your host. In just a moment, we'll take your calls and questions on anything financial. We've got some lines open today, and we'd love to hear from you, whatever's on your mind.

Here's the number, 800-525-7000. We're going to Bloomingdale. Hi, Guy. Go right ahead.

Yes, I'd like to ask you a question. I'm 83 years old. I've been in the stock market for over 61 years. However, I do not trust the stock market anymore because of my age. I'd like to get into, which I am, get into the CDs, which are paying $535,000.

And I have $2.5 million in the stock and mutual funds, but is there a way I can get out of it, all of it, without paying any tax, or do I have to pay the tax? Now, if I was 20 years younger, I would be sitting tight. I would not do nothing. But since the CDs are paying $535,000, I'd like to get into the CDs. Can you give me your opinion? I'd be happy to.

Yeah, Guy, I appreciate that. What type of account is it? Is it a retirement account, or is it just what I call a taxable account?

Cash. Okay, so your stocks are not inside an IRA or something like that, correct? Correct. Okay, so every time you sell something for a profit, you pay taxes on it in the current year, is that right?

Oh, absolutely, yes. Okay, all right, very good. And what is it, give me a sense of what your allocation is currently. What percent do you think you have in stocks versus bonds and cash? Do you know? Well, I don't think I know.

I have 60, 70 percent in bonds and 30 percent in stocks. Okay, all right, yeah. And have you had more volatility than you would like in the last couple of years? Yes, I did. Okay, and are you pulling anything out of this to live on, Guy?

Yes, I am, I am. They're sending me a check every year, every month. How much, roughly? $4500 a month. Okay, so you're taking a very modest amount out.

Yeah, I mean, here's the reality. I mean, if you were to call me and say, Rob, what would you recommend as an allocation for an 80-year-old man with $2.5 million? Well, I'd say, first of all, we need to define how much is enough and look for opportunities, if you have more than you need, to accelerate your giving while you're living. One of my mentors, Ron Blue, says, do your giving while you're living so you're knowing where it's going. And it's just kind of a fun way of saying, you know, God's given you this wealth.

Part of it is to be able to bless others and to use it in line with your passions that align with God's word. Part of it is perhaps to save and maybe give as an inheritance and a portion of it to live on, which you're doing. But you're pulling out a very modest amount of this $2.5 million portfolio. So normally what I would say is it wouldn't be inappropriate for an 80-year-old person who's in good health to say, given the fact that I plan on passing it on, either giving it away to charity at my death or leaving it as an inheritance, I want to continue to grow it so I can avoid losing the purchasing power because of inflation. And one of the ways I would do that is to maintain maybe a 20 to 30 percent position in stocks, the growth component of the portfolio, and put the rest in bonds.

You've done that. Now, you just went through a period where bonds underperformed, and it was very unusual. We don't normally have 12 consecutive rate hikes by the Federal Reserve, and whenever rates are going up, bond prices are falling.

Well, we're at the end of that. We may have one or two more, but eventually they're going to start lowering rates probably next year because they're going to need to stimulate the economy because their whole goal is to slow down the economy, essentially is close to it, put us in a recession to overcome and fight inflation. Well, when that happens, the bond portion of your portfolio that's been underperforming will outperform. So that's the only downside to what you're talking about is you're going to give up a lot of that upside in those bonds as the interest rates start to fall. Now, because you have more than you need, and the only reason I say that is you're pulling a very modest amount. You're pulling about 2 percent of this portfolio out per year, and that's a very modest amount. So you don't need to take more risk than is necessary. And so to your point, if you could lock it up in a CD and have no risk and know that you're still getting a decent rate of return, well, if that helps you to sleep better at night and you feel like you're being a better steward, then that's fine. Go for it.

There's no problem there. I would just say think about the fact that these interest rates that we're seeing now with CDs are likely temporary, which is why you're going to get less in a five-year CD today than you are in a one-year, because the banks know that we're probably not going to see interest rates where they are today five years from now. They're going to be coming down to stimulate the economy. So you will have gotten out of your bond positions, you're going to miss the increase in the bonds as the interest rates fall, and you're going to be sitting here two years from now with $2.5 million, and you're not going to be able to get a 5.5 percent CD. So that's the only reason I might consider just maybe you take a portion of it and put it in CDs, but you leave a pretty significant portion in that bond allocation.

Two other things. One is you may want to consider an advisor who can help you manage all this and make these decisions. And if you choose a Certified Kingdom Advisor, they'll share your values. You could go to faithfi.com, click Find a CKA. That'll help you find a local Certified Kingdom Advisor to help you. The second is, before you sell any of those appreciated stocks and pay capital gains, think about giving them away to a donor-advised fund first, save the tax, and get more into ministry.

Thanks for calling today. Quickly to Park Rapids, Minnesota. Craig, I've got just about 45 seconds. How can I help you? Okay, I have $10,000 in an I-bond, and I can get a higher rate of interest in a CD from my credit union. I do.

I've got a nonprofit. I'm leaving for Thailand. I think I can transfer that out of the Treasury Direct online and move it into the CD. I think that's the correct decision.

Yeah, I like that option a lot. When they were at 9.6, it was great. Then they dropped down I-bonds to 6.8. Now we're at 4.3.

You're probably going to get somewhere in the middle. The aggregate rate, if you've held it for a year, between 4.3 and 6.8. You are going to lose, if you've held it less than five years, three months' worth of interest as a penalty.

But that's okay because I agree with you. Now's the time not to be invested in I-bonds moving forward because those rates, the composite rates are going to continue to drop. So taking advantage of the higher rates in CDs makes a lot of sense. If you want an institution that shares your values, check out joinchristiancommunity.com. That's the Christian Community Credit Union. Thanks for your call. 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.