What Is A “Safe” Home? with Harlan Accola

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Movement provides residential home loans in all 50 states. Founded in 2008, amidst one of the biggest financial meltdowns in American history, Movement set forth on a mission to create a movement of change in their industry, in corporate cultures, and in communities. So that a portion of their profit creates a long term positive impact in communities, both close to home and around the globe through the Movement Foundation and Movement Schools. It all comes back to their mission to love and value people. Learn more at movement.com slash faith.

dot org. Many rules come with exceptions. Perhaps that's nowhere more true than with financial decisions. Hi, I'm Rob West.

In most situations, paying off the mortgage and becoming debt free is the right decision. But it may not be possible for everyone. Harlan Akkala joins us today to talk about red doors and exceptions to the rule. We'll explore that today and then it's on to your calls at 800-525-7000. This is faith and finance, biblical wisdom for your financial decisions. Well, once again, our guest is Harlan Akkala with Movement Mortgage and underwriter of this program. Harlan, great to have you back. Good to be here, Rob. Thank you. Now we say that it's always educational when you join us, Harlan, and I'm sure that will be the case today because we're talking about red doors and reverse mortgages.

What in the world do those have to do with each other? Well, I ran across the history of red doors. Folks at one time or another may have painted their front door red without knowing its significance.

You go back to the Children of Israel and the blood on the doorpost, which saved everybody inside when the death angel passed by. And then to modern day in Scotland, it was a custom that paint the door red when the house had no mortgage and kind of an outward show of pride for accomplishment. And then in early American tradition, a red front door indicated to weary travelers that the home was a welcoming place to rest.

This practice allowed the travelers and horseback or and buggies to quickly identify homes where they could find hospitality and shelter for the night. Well, okay, I'm following you here. So red doors signify a place of safety. And that's a good thing, right?

Well, it is. But we also have to look at what safety means. Where do we get our safety from which may differ for different people? I think we often place too much significance on our house being paid off rather than being a place where our needs are met and memories are made.

Yeah, exactly right. There's more to it than deadbolts in an alarm system, right? Well, there is most people feel it's safe to pay off their home and have it free and clear.

That's repeated often. But we have to really ask, well, what is safety, being able to live in your home and invite friends, family and even sometimes strangers to share in your blessings. And food would also be considered safety, being able to live in your home without fear of being forced to sell or to be foreclosed on is more important, the older we get and could certainly be considered safety in my age group. Yeah, no doubt about it. But for most people being free and clear with their home is a significant milestone. And, of course, gives them a chance to worship God and in Thanksgiving for his years of provision. That's a good thing.

Well, it is, of course. However, we must also be concerned about safety, efficiency and good stewardship of our money, especially in retirement. Many don't think just as God has provided for them to pay their house off, they also don't think this investment could be a continuous source of God's provision for them through a reverse mortgage.

Should they need it? And as you know, from talking with callers daily, many people have paid off their mortgages, but are struggling to make ends meet in some cases, and people that are still making mortgage payments in retirement are having a tougher time. But if they took out a reverse mortgage to either eliminate their payments or to let them draw income from an asset and still stay in their houses, while having their needs provided for safely.

That's why having a diverse definition of safety is so important. So while having a paid off house is a wonderful blessing, it shouldn't prevent us from making the best stewardship decision possible for our unique situation. For some that looks like going with a reverse mortgage, so their needs can be met.

Okay, yeah, this makes sense to me. And you know, of course, we talked to a lot of folks who are in that position where they haven't been able to save enough, they don't have the income they need to cover their expenses. And that's why we talk about a reverse mortgage as a tool.

They may not realize they have at their disposal in this season of life, right? Well, yes, this past month, the home equity of seniors over 62 across $13 trillion, the largest asset class in the history of any country in the world. It's also the largest pool of wealth that is the majority being controlled by Christians. And a reverse mortgage can really answer many questions that seniors face. It can be a need or a want depending upon tax issues and so on. But it can certainly be an answer to prayer if someone is concerned about how will they cover their bills and help their families in this season of life that can be very uncertain.

Yeah, no doubt about it. So it's a good thing to pay off your mortgage. But we should also consider depending upon what assets you have access to whether or not a reverse mortgage may be the right tool for you in this season of life. And Harlan just real quick before we run out of time, the reverse mortgages today, what you call the heckum are different from those we've heard about in decades past, right? Absolutely.

They're the safe ones, the ones that cannot kick you out of the house as long as you pay taxes and insurance all the way up to age 150, which is very different than some of the old products that were actually preyed on seniors and hurt them. There is such a dramatic difference and many people don't know what that difference is. Well, we're gonna have to leave it there for today. But always appreciate your insights, my friend. If folks want to learn if a reverse mortgage works in their situation, where can they go to learn more? Just have them come to movement.com slash faith and we'll be happy to help them. Folks again movement.com slash faith is where you can go to learn more back with your questions after this 805257 thousand. We're grateful for support from movement mortgage who provides residential home loans in all 50 states guided by a mission to love and value people and a goal to redefine the mortgage process movement seeks to help others achieve their financial goals.

You can find out more at movement.com slash faith movement mortgage LLC supports equal housing opportunity and MLS number 39179 for licensing information, please visit in MLS consumer access.org. Do you feel like your hands are tied with debt preventing you from serving God. If you have credit card debt Christian credit counselors can help through our debt management program we can get you out of credit card debt about 80% faster while honoring your debt in full. For more information on how Christian credit counselors can help visit Christian credit counselors.org that's Christian credit counselors.org or call 800-557-1985 800-557-1985 grateful to have you with us today on faith and finance from Rob West. All right, we're ready to dive into your questions here in just a few moments that number to call today 800-525-7000. That's 800-525-7000. Our goal each day is to be an encouragement to you to be hopeful to be Reverend as we approach God's Word to give you wise counsel, not because it comes from me wise because it comes from Scripture and to really help you understand the heart of God as it relates to your role as a steward and managing God's money, you know, I've talked to thousands and thousands of listeners.

We I think tallied it up the other day. It's more than 3,000 questions that I answer each year among the various broadcasts and you know, what I've seen firsthand is that money can serve as both a blessing and a burden no matter how much or how little you have and the reason is because it's not about the money at all. It's about a heart attitude. You see money is a good gift from God, but that good thing can become a bad thing when it becomes a ruling thing and we were created with a longing for abundance and life that only God can satisfy in the world will tell you that money can provide the fulfillment significance and protection. You're searching for it's a lie. The deceitfulness of riches will choke out the word from bearing fruit in our lives.

If we allow it to become the object of our affection and our devotion. However, when we recognize that our role is that of steward of God's resources or manager you might say and that the role of money is a tool to accomplish God's purpose as well that changes everything because money then becomes a powerful force for good for us to enjoy and to use to provide for our loved ones and to give to those in need and even to fund the Great Commission and invest in ways that promote human flourishing. That's the opportunity that we have and so we want to be a place each day that we can just encourage you in that journey to help kind of counteract the messages of this world and help you lean into a biblical worldview all that God has for you in this area biblical money management. So we realize in light of that you have some very practical decisions and choices you're making in your financial life and so we'd like to help you tackle those the way you can get in on the conversation today is by calling 800-525-7000.

That's 800-525-7000. We've got some lines open. All right, let's get going today. We're going to begin in Texas. Lupe, thank you for calling.

Go ahead. So I am 61 years old and I want to file for Social Security at 62, but I have so much credit card debt and loan debt. I'm thinking about filing bankruptcy and I just wonder what your take is on that. I looked up your credit counseling thing, but they don't take care of one of my loans, so I didn't go any further with them.

Isn't it, Kennedy? The one that we're most familiar with at Faith and Finance is Christian Credit Counselors. We just have a long-standing relationship, both wonderful organizations. You can't go wrong, so you could certainly reach out as an alternative to christiancreditcounselors.org. That's Christian Credit Counselors. Social Security benefits are considered exempt assets.

Typically, I'm not an attorney, so you'd want to check with an attorney, but just generally speaking, they're protected from creditors during bankruptcy. So if you were forced into bankruptcy, for whatever reason, you won't find that word in the Bible. What you do find is that we need to have an absolute commitment to repayment within what has been provided to you. And I realized, despite the decisions that have been made leading up to this point, the question is how can you manage what God has entrusted to you, the assets that you have and the income you have, and how do you use that to both satisfy the obligations you have as well as meet your basic needs? You know, keep food on the table, gas in the car, the utilities paid, and a roof over your head.

I mean, once we get past those big four, then everything else should be negotiable as you try to honor your obligations and give to the Lord and balance your budget. So what I would do, Lupe, is reach out to ChristianCreditCounselors.org just as an alternative. Perhaps they could help you work up a budget and think about how you can begin to get on a path to pay back those credit cards over time. The benefit of a debt management program is those interest rates are dropped. You send one level monthly payment. They'll work with you to make sure it fits into your budget or they won't put you in the program. But if it does, then at least every month now you're making more meaningful progress toward paying it back because of the lower interest rates. Apart from that, you could visit with a certified Christian Financial Counselor.

We have some of them available on our website. You could also visit with a Godly bankruptcy attorney just to see whether that is necessary just from a legal standpoint. But does that make sense? What do you mean by a Godly bankruptcy attorney? I mean an attorney who specializes in bankruptcy who's a Christ follower. And you certainly can find attorneys. And again, you won't find bankruptcy in the Bible. It's a modern legal term that was created and many Christ followers find themselves, because of any number of circumstances, whether it was lifestyle spending, poor choices or just unforeseen events out of their control, where they're forced into bankruptcy for protection, but they often will go on to come up with a plan to repay those obligations after the fact. And you're not precluded from doing that. But that's all I mean is just a Christ follower who shares your values and priorities as a believer, who is an attorney and who has skills and competencies in the area of bankruptcy. Perhaps you could reach out to your church and see if there's one in your local fellowship.

So hopefully that helps you, Lupe. Again, that website Christiancreditcounselors.org. And we appreciate you being a part of the program today. Let's go to North Carolina. Hi, Peggy.

Go ahead. Hi, my question is we sold a property and owner financed the property. When do we report the taxes on it? And is it a long term capital gain? I had it for 15 years. Lived in it some, but it wasn't our primary residence.

Yes, yes. Yeah, owner financing is considered an installment sale. So you are allowed to report the capital gains in proportion to the payments you receive each year rather than reporting the entire gain in the year of the sale.

So it's calculated, the gain is calculated based on the difference between the selling price and your adjusted basis in the property, which is just your purchase price, you know, plus any improvements that you made. And then it can be spread out over the period of the loan. Now, you do have to report the interest income that you receive. So that portion of the loan payments that's interest, that's subject to ordinary income taxes, not capital gains. But the portion that is just the payment for the purchase, that portion can be spread out, you know, as you realize the capital gain over time through those payments as they come in. So what I would recommend here, Peggy, is that you consult with a tax professional on this because, you know, they can help you tailor this to your specific situation. But the good news is you don't have to report all of the capital gains this year. You're able to spread that out.

But I think a CPA would be really helpful to you to kind of make all this happen. Does that make sense? Yes, it does. Thank you.

Let me ask you one more question. What is the difference in reporting a long term capital gain and a short term capital gain? Is there any break at all for having owned all that period of time? Well, if you own if you've owned the property for more than a year, it's going to be a long term capital gain.

So that's the difference. If it's less than a year, it's a short term long term capital gain that has a long term capital gain rate, which for most people is either zero or 15%. And if it's short term capital gain, it's going to be treated as income. So, again, I think this is a time for you to reach out to that tax professional. If you need one, you can find a CPA who's a tax professional at faithfi.com.

Just click find a professional. Thanks for calling, Peggy. A quick break and back with more questions after this. We're grateful for support from Guidestone, whose diversified suite of investment solutions align with Christian values to create positive change in the world. More information is available at Guidestone funds dot com slash faith.

Investing involves risk, including potential loss of principal. Carefully consider the investment objectives, risks, charges and expenses of Guidestone funds before investing. They're distributed by Four Side Funds Distributors LLC, which is not an advisory affiliate, a registered investment advisor, nor do they provide investment advice. As the leading advocate for the Christian financial industry, Kingdom Advisors serves the public by promoting the integration of a biblical world view 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 Kingdom Advisors dot com.

That's Kingdom Advisors dot com. Great to have you with us today on faith and finance for taking your calls and questions. Hey, before we head back to the phones, as a listener supported ministry, we rely on your gifts to bring you this program and all the great resources we have here at faith by the studies and devotions are new publication coming out next year. Faith by app and all the content at faith by dot com. If you'd like to bless the ministry, perhaps help others hear the message of biblical financial stewardship, a gift at faith by dot com would go a long way to helping us reach our goals. Just head to faith f i dot com and click give at the top of the page. You can make a one time gift or consider becoming a faith by partner. Those are the monthly supporters that we send all of our studies and devotions to pre release. You'll get a copy of our new publication starting in the new year, plus discounts on our pro subscriptions and ordering of materials.

That's all on our website faith by dot com. Just click give. All right, back to the phones. Let's go to Tennessee. Hi, Larry.

How can I serve you? I was asking about bonds, Israel bonds, what interest rate they're paying now. And if there's a broker last hour, you can only buy them through a website. I believe he had.

It's quite involved. And I'm sure he don't know much about computers and just a number I can call. Yes, I'm down about them.

Yes, sir. You can only buy bonds from Treasury Direct. That's that website you're referring to a treasury direct dot gov.

They do have a phone number that I could give you. It's just challenging to get through. I'm not a big fan of bonds right here just because the Fed is so focused on getting inflation down. And as you probably know, a core component of that composite index is the inflation rate. And so I bonds were very attractive a couple of years ago, up over 9%.

Now they're sitting at 4.28. And that's probably going to continue to drop. You can do better than that in just a high yield savings account right now. You know, I mean, you can get high yield savings right now with FDIC insurance, meaning it's backed by the full faith and credit of the United States government. And you can get, you know, 5% right now on your money. And so that's perhaps a better option in terms of an advisor who could help you kind of navigate all of this and think about what to do.

Let's do this. I'm going to ask you to hold the line, Larry. And rather than giving you a website, which I can understand, you're not terribly comfortable using that as your source of information. I'm going to have one of our team members call you and they can help you get connected to an advisor there in Tennessee that is a godly person who's signed our statement of faith and been vetted and has earned the certified kingdom advisor designation and do that all over the phone. Would that be helpful to you? Well, you've answered my question.

If there are only four point something, I'm already getting five to five point two. And I have a good advisor, a Christian man. And you just answered the question so quickly. I appreciate it. Absolutely, Larry. Thank you for calling, sir. It sounds like you're all set. Let's go to Kentucky. Hi, Tracy. Go ahead.

Thank you for your show, Rob. And my question is, my husband and I tied. We have always because we believe everything we have is God's. But we just really struggle with where we're at in church with some of their financial decisions. And we feel like we're the only two. We sit in business meetings and we think, are we the only two that disagree with this? And so writing out that tied check, it's just really difficult when we really don't agree with what they're investing money in. We pray, are we wrong?

Is the church wrong? God, everything we have is yours. We don't want to withhold. We don't use it as an excuse not to give. But we just feel like the money could be spent in much better ways.

Yeah, yeah. Well, it's a great question, Tracy. And I think the big idea here, number one is that we absolutely need to be involved in and you guys are so I'm not saying you're not, but we need to be involved in an active in the local church. You know, that's God's plan A, you know, we need to be there serving and growing in a community of believers in a Bible believing church.

That's number one. I think this matter of the tithe is kind of a secondary issue in the sense that we need to decide first where has God planted you. And if you then have concerns about any part of what's going on at the church, I think you take those concerns to the elders or the governing body of your church, because you want to be able to talk it through and pray for wisdom and discernment in that conversation. And is it possible that this is just a disagreement that reasonable people may have?

Or is there something else there? You know, I think you could also raise the issue of your church as a membership meeting. I wouldn't in any way gossip about the issue or cast dispersion, but I think in a way that's respectful and in the channels that are that already exist, I would I would raise the issue and ask for further clarification. Perhaps you want to consider serving on your church finance committee, if there is one.

I've done that in the past. And that's a way not for you to just kind of impose your desires necessarily, but for somebody who's willing to say, Listen, I want to get in the boat with you and help provide, you know, some of that wisdom and leadership and, you know, seeking the Lord through prayer for discernment around how the church should conduct its finances. But ultimately, I think if you feel your leadership refuses to practice faithful stewardship with the church finances, then ultimately, you'd have a bigger question, not necessarily about your tithe. But really, is that the right church for you? And because you have to be a faithful steward of the resources God has given you. Have you ever raised these concerns with anybody on the church leadership?

No, no, we haven't. Okay. And it could be that if you were to do that, you know, you could get some clarification that might, you know, help you understand why decisions are being made the way they are. It's often difficult kind of sitting in the pews to understand the full perspective of why things are being done. I'm not saying everything necessarily is being done exactly the way it should.

They may or may not be. But apart from you asking some questions, again, in the right heart posture with the right approach to say, listen, I love this church and, you know, we're here and we're committed and we're faithful givers. But just from where I sit, there are some questions I have that I'd love to be able to dig a little deeper on and see if somebody can help walk you through that. I would imagine they would welcome that conversation. So I always did when I was the chairman of the finance committee at the churches I've been a part of in the past, because otherwise you don't have an opportunity to explain the rationale and the decision making that's going on. So I would encourage you perhaps as a next step to maybe take a few days for you and your husband just to kind of pray through it. Lord, give us wisdom as to how we should approach this.

And if you legitimately have some questions or concerns, you know, take that, you know, to the elders or, you know, perhaps you, you know, ask your pastor what's the best channel to explore this and see where that goes. Does that make sense? Yeah, it does. Yes.

Thank you. Okay, absolutely. Listen, I appreciate you raising this question because, you know, we should be givers and I believe that should start with our local church. I think that's very clear in scripture. And yet there are going to be from time to time questions or concerns. Now, at the end of the day, if this is where God has planted you and you feel like, you know, this is your church home.

I think there's some element of just saying, hey, we're going to trust the the authorities that God has put in place, but that doesn't mean we can't ask some questions along the way. God bless you. Big thanks to my team today. Taylor Standridge, Amy Rio, Stan Anderson. We're also grateful for Gabby T. Clark. Faith and Finance is provided by Faithfi and listeners like you.