Larry Burkett once said, Today, I'll give you seven marks of a good steward, and 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. Now, when Christians hear the word stewardship, we tend to think of money or tithing, and obviously those things are important, but stewardship involves much more than that. Jesus entrusted us with the gospel and gave us his immeasurable love by dying on the cross. As stewards of those priceless gifts, we're to share them with the world, so keep in mind that stewardship isn't just about money. So what are the marks or characteristics of good stewards?
Well, I've already mentioned the first. They acknowledge that everything belongs to God. They possess resources only temporarily to serve his purposes. They don't hoard or covet more. They understand that even the skills they possess to earn a living are a gift. Deuteronomy 8 18 reads, You shall remember the Lord your God, for it is he who gives you the power to get wealth. And 1 Peter 4 10, as each has received a gift, use it to serve one another as good stewards of God's varied grace. Next, good stewards fully understand the mission they've been given and how important it is. God has graciously given them a role to play in his plan, and they take that role seriously, but with humility. They take comfort in Proverbs 16 3, which reads, commit your work to the Lord and your plans will be established. A third trade of good stewards is that they are faithful. Now, of course, this means they are faithful in following God's financial principles, earning, saving, investing, and most important, giving.
They are persistent and persevering. That means they're also faithful in their calling as stewards of the gospel and they're not afraid to share it. 1 Thessalonians 2 4 reads, Just as we have been approved by God to be entrusted with the gospel, so we speak, not to please man, but to please God who tests our hearts.
Romans 1 16 reads, I am not ashamed of the gospel, for it is the power of God for salvation to everyone who believes. A fourth characteristic of good stewards is that they are trustworthy. They're truthful and honest in all they say and do. Proverbs 12 22 warns, Lying lips are an abomination to the Lord, but those who act faithfully are his delight. Titus 1 7 follows that up with, An overseer, as God's steward, must be above reproach. He must not be arrogant or quick tempered, or a drunkard or violent or greedy for gain. Next, good stewards are diligent. They don't waste time watching mindless programs on television or staring at their phones monitoring social media.
They develop good habits for eating and exercise. 1 Corinthians 15 38 teaches, Therefore, my beloved brothers, be steadfast, immovable, always abounding in the work of the Lord, knowing that in the Lord your labor is not in vain. And Proverbs 13 4, The soul of the sluggard craves and gets nothing, while the soul of the diligent is richly supplied. And the sixth trait of good stewards is that they spend time in prayer, seeking God's will and his wisdom. James 1 5 reads, If any of you lacks wisdom, let him ask God, who gives generously to all without reproach, and it will be given him. Good stewards do not waste time worrying because they know that God will provide. Philippians 4 6 teaches, Do not be anxious about anything, but in everything by prayer and supplication, with thanksgiving, let your requests be made known to God. And the final characteristic of good stewards is that they act when they feel the Spirit leading them to. 1 Peter 1 13 says, Therefore, preparing your minds for action and being sober minded, set your hope fully on the grace that will be brought to you at the revelation of Jesus Christ. So folks, those are the seven characteristics of a good steward. They of course set the bar pretty high and none of us can expect to exhibit them all of the time, but we must always try.
The goal? Faithfulness. We need to be obedient, and God's Word says those who have been given a trust must prove faithful. All right, we're going to take your calls next. The number is 800-525-7000. By the way, you can call that number 24-7, 800-525-7000. I'm Rob Lastin. This is Faith and Finance, biblical wisdom for your financial journey.
We'll be right back. It's available on desktop or mobile. Simply go to faithfi.com and click app to get started. We are grateful for support from one ascent investments on the faith and finance program. They manage a comprehensive suite of value based investment strategies designed to help Christian investors live aligned with what they value most. One ascent believes that if your values inspire the way you live, they should also inspire the way you invest.
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How are you using God's resources? We're talking about it, and the lines are open to take your calls and questions. 800-525-7000 is the number to call. To Indiana we go. Denise, thank you for calling. Go ahead.
Hi. I just had kind of a general question. My husband and I, we own a nice house with farm ground, quite a bit of farm ground. I mean, not quite a bit, but we're looking eventually to go to a condo, and if we sold our house, we do owe a little bit, but we would have enough left over to purchase a condo and hopefully have a little bit left over from that. How do the capital gains work with that? Yes. So this is your primary residence for the two out of the last five years, is that right?
Yes. So you would be able to exclude, as a married couple, up to a half a million dollars in gains on this property, and you don't have any requirement as to what you do with it. This is not like a 1031 exchange where you have to reinvest it in another property. You just automatically get to exclude that gain of up to a half a million from capital gains taxes, and then you can do with it as you see fit. Buy a condo, put it in savings, invest it, whatever you'd like. Okay, great. So we can exclude up to a half a million dollars. That's right.
If this is your primary residence, you'd have up to a half a million dollars that you could exclude from capital gains tax if you've lived there two out of the last five years. Okay, great. Thank you so much. Okay, thank you for your call, Denise. We appreciate it. All right, let's head to Nashville. Fay, go right ahead.
Yes, I have a question. I'm fixing to turn 68, and I retired two and a half years ago, and my husband had 10,000, no, I think it was 10,000, invested in a credit union, and he's getting 4.25 on that, and he's invested four months. Well, he was taking a look at my 401k, and he's thinking about taking a total of 25,000 out, and of course 5,000 will be the 20% penalty for the taxes, and then he's going to invest 20,000 in the credit union for two years at 4.25. Well, the only problem with that I see is that that will only be $1,800 in two years. I call it a loan and paying it back.
And so in two years, you would have $1,800, and then it's going to take almost six years to pay that 5,000 back. Yeah. Were you actually thinking of taking it, Fay, as a loan against the 401k or a withdrawal, a distribution? Withdrawal.
Withdrawal. Okay, yeah. So you actually wouldn't be able to put it back in? Well, I'm just saying, you know, like, it's in there, but if I take the 20% and pay that off, you know, pay that tax, I've got 20,000 to deal with. Yeah, I see.
Okay. And so then you turn around at 73, it's either going to be 72 or 73, and you're going to have to take 27.4% out and pay taxes on that. And it looks like to me, I may be wrong, but it looks like to me, you have 5,000 in there, and you know that's guaranteed.
It's getting like 33.2%, which is not a lot, but it's not bad. And so, but if you take that 5,000 to pay to get that out of the taxes, and then it's got, you know, every year you're, for me, you've got to break even. And so it's going to take over five years to get that. Yeah, yeah.
I would agree with you, Fay. Here's the reality. I mean, these rates right now are very attractive because we haven't seen interest rates like this in a long, long time. And so the idea that we can get a guaranteed with FDIC insurance, 5, 5.5%, you know, through a high yield savings or locking it up for 12 or 24 months and getting that out of a CD is very appealing. And for someone who's in your season of life, especially given how long it's been since we've seen interest rates like this, I can appreciate why your husband is saying, well, why would we pass that up? That's just too good. And yet we have to look at the bigger picture because let's say, I mean, you said you all are 68.
Let's say the Lord tarries, you're in good health. We need this money, at least from a planning standpoint, to last another three decades. So what is the best long term strategy for your retirement slash investment assets to be able to last through age 100, if that's what we're going to plan to?
And because we take that perspective, I would agree with you. It's not wise, in my view, to be pulling money out of your retirement plan, paying the tax on it, when you have the ability to let that continue to grow in a tax deferred environment until such time as you have to take it out as a required minimum. But that's getting further and further down the road and you still only have to take a small portion out and you could pull it out as a qualified distribution and replace current cash giving that you were doing as a separate strategy. But this only works as long as you're invested.
I wouldn't want you sitting on the sideline. Now, typically, if somebody called me and said, Rob, I'm 70 years old, I'm trying to preserve what I have, but I want it to be an income generator, what would be the right mix of stocks and bonds? Well, I would say as long as you've got at least six months, maybe a year in cash, and that's up to you, then I would say the right mix of stocks and bonds at age 70 is 40% in stocks and 60% in bonds. And by the way, bonds are going to do very well as the interest rates start heading down next year. And if they said, ah, that seems a little too aggressive, I'd say, OK, well, then let's go 30% stocks and 70% bonds. But I'd have at least 30% in stocks.
Why? Because that's what's going to give you the growth component to the portfolio so we can overcome inflation because these high interest rates are probably temporary. These rates are going to start heading back down. And now all of a sudden you've got money outside of the retirement plan, which means everything you're investing it in is taxable now as opposed to tax deferred. And you're no longer getting the five and five and a half percent rates because rates have fallen.
And I'd rather that money be in this investment account, invested in an appropriate mix of stocks and bonds that's appropriate for your age and risk tolerance and goals and objectives, but has the ability to grow because we've got that 10, 20, 30 year time horizon on it. Does that make sense? Yeah, it does. But I'm going to tell you this. It's been like, well, anyway, it's fixed 3.32%.
OK, yeah. And it's fixed. And so, but... Is that, are you all, do you have a conviction of staying in the guaranteed portion of that retirement plan? Yes, because we're afraid, you know, something will bottom out and all this stuff. And it ain't no great thing.
I mean, I worked all my life, but there was a break in time in there. And so, but it is what it is. And, but no, that's fixed. OK, but see, I guess what I would say is what I would prefer, and you're the steward, so you and he need to feel absolutely have a peace of mind about this. What I would prefer is you have an advisor that helps you manage this and you get it out of that 3.3 and you put it in 60 or 70% in bonds, which you're paying 4% and they'll grow as the interest rates come down.
And then you have a small portion in stocks and that gives you a much greater growth potential as well. Let's do this. I've got to take a break, but I want to finish this conversation on the other side. So you stay right there.
We'll be right back. Because of my past health history, finding affordable health care was nearly impossible. But then I found CHM where costs are not adjusted based on medical history. Christian Health Care Ministries even provides the freedom to choose my own providers. And the best part CHM members pray for me. Too good to be true?
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Eight hundred, five, two, five, seven thousand. Before the break, we were talking to Faye in Nashville. She and her husband are in their late 60s.
They are retired. They've got some money in a retirement account and a guaranteed investment at three point three percent. And then Faye's husband has some money that he's placed in a higher yielding banking product that's guaranteed getting five percent plus. And he's wanting to pull a portion of that money out of the 401k to drop it into that five percent plus fixed investment there at the bank.
And she and I are saying I'd rather not do that, rather not pay the taxes on it, maybe for slightly different reasons, but the same big idea. And that is, I think the opportunity you have, Faye, is to keep that money as long as possible in that tax deferred environment and then pick from the investments that you want in there. Now, one option is you could roll that 401k out to an IRA and then you've got complete discretion over it.
It could stay right there in the IRA and you could still buy CDs and get four or five percent with the whole thing and not pay the tax on it. What I'm saying is I'd like for you to consider taking a longer term perspective. Keep in mind, in this country, when you reach age 65 as a male, your life expectancy is 82.
As a woman, your life expectancy is 85. Now, none of us know the day or the hour the Lord will call us home, so we don't want to presume upon the future. And yet you still have a long term perspective or you should with this money. And that's why when we recognize, OK, even at 70, I need to think in terms of having this money around for decades. That's why I'm saying it makes sense to take at least a portion of it and move it into some fixed income type bonds or even a very small portion and put it into stocks. But I think the big idea, whether you do that or not, is I'd rather see you keep this money as long as you've got enough liquid cash for your reserves.
Keep as much, if not all of it inside that retirement plan. Amen. Amen.
And that's what I was thinking. And I mean, I said I just couldn't. I had to get some advice because I was trying to get somebody to see my way. I don't I don't think that's a good idea.
And then turn around at 73 and have to do it for real. Yes, ma'am. Well, don't tell him I'm picking sides, but hopefully that helps. And if I can assist you all further down the road, give me a call. God bless you, Faye. Thanks for being on the program today. We appreciate it.
Let's head to Chicago. Hi, Louis. How can I help you? Hi.
Good afternoon and thanks for taking my call. I was explaining that I it's about a 401k that I am participating in my employment with my with my job. And so my my employment is going to end. My assignment is going to end on March of 2024. So I do have my 401k with a balance of about one hundred and two thousand dollars in it.
And this small amount alone that I is still outstanding. So when that when that date comes to know what would be your recommendation for me to what action should I be taking into literacy until I find employment? Hoping that my next employer, you know, offers 401k. I've been hearing a lot about a broad higher rate.
What do you think about it? Yes. And so when are you planning to separate from employment?
It's March 2024. OK. Yeah. And so currently you owe about one hundred thousand on that loan. Yeah.
No, no, no. It's what I have in my in my 401k. That's it. The loan I think is about fifteen hundred dollars loan outstanding on that 401k loan I took against it. OK. Got it.
Yeah. So you'll have to pay that back. If you leave your job for any reason and you still have a balance, you have to repay the loan in full or it will be reported as a distribution. There is a limited number of cases where they'll let you pay that off in installments, but typically it's immediately needs to be repaid when you leave.
And if you don't repay it, then it would be considered a distribution, which would be added to your taxable income. Then for what remains in your 401k, you can either roll it to your new 401k, assuming you have a new employer that also has a 401k that would allow you to roll that in. And the only reason you'd want to do that is just it's simpler because now you don't have a second account or you could roll it to an IRA. And obviously you've got a substantial balance in there and there's probably a good case for rolling it to an IRA.
But you'd want to select an adviser, in my opinion, ahead of time, somebody who can manage that money for you, because as soon as you get it out of the 401k with a limited menu of investment options, now all of a sudden you have basically unlimited investment choices and I would love for you to have, since you've spent so much time building this nest egg up, I'd love for you to have somebody that could manage it for you, oversee it, protect it, grow it at a reasonable rate and allow it to continue to work for you while you're still in your working years. Okay. Is there any financial institution that you would recommend that you would see a thing that would help me with it?
Sure, yeah. I'd reach out to a certified Kingdom advisor there in Chicago, Louis. So CKA is the only industry designation in financial services that's widely accepted for biblically wise professional financial advice. So these are men and women, about 1400 of them across the country that have met high standards and character and competence. And they've met experience requirements and they've signed a statement of faith and a pastor and client reference. And they've been trained to bring a biblical worldview of money management. So I'd interview two or three CKAs in Chicago and then find one that you feel like is the best fit. And then that person could open the IRA. And then when you separate from service, you'll roll that 401k into your new IRA. And that money manager, that advisor would take over the management based on your goals and objectives.
And you'd do extensive discovery before that happens. The way to find a CKA there in Chicago is just to head to our website, faithfi.com. That's faithfi.com.
And just click find a CKA. Okay? Awesome. Thanks, Rob.
Thanks for your help. Yes, sir, Louis. And God bless you as well. To Wisconsin.
Hi, Catherine. Go ahead. Hi, I'm just wondering, I saw an article about gold IRAs and wondering, I'm wondering what you think of them.
Yeah. Well, you know, that's just a way to buy gold inside the IRA structure, which makes it tax deferred and allows it to grow tax deferred. You know, I think the key question is how much, what percent of your total investable assets should you have in gold?
And I would say that really shouldn't be more than 10 percent. Usually folks that are looking at gold IRAs are going to be more highly concentrated. And I would just say, Catherine, based on the historical performance and given the fact that gold doesn't generate an income, it's more volatile.
It performs less. I'd rather you have the bulk of your money, 90 percent in stocks and bonds and keep the gold to no more than 10 percent. So I don't have any problem with the gold IRA. I think it's just what does that gold IRA represent in total in terms of your total investable assets?
And for me, I'd keep that at 10 percent or less. Well, once again, our time went by way too fast, but tune in next time and we'll do it all over again. 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.
