4 Commandments for Money

We all know the Ten Commandments. They're listed clearly in Exodus 20 and Deuteronomy 5. But did you know that there are at least four more commandments about managing money? Okay, so maybe they're not spelled out one, two, three, four, but they're definitely in God's Word. Today host Rob West talks with financial expert Ron Ballou to find out just where to find them and why we need to follow them.

Then it's your calls at 800-525-7000, 800-525-7000. I'm Steve Moore. Four commandments for money, next on MoneyWise Live. Rob, our friend Ron Ballou is a much sought after speaker and author on biblical financial principles.

He's co-founder of Kingdom Advisors and CEO of the Ron Ballou Institute, which provides much needed biblical teaching materials for today's students who'll become tomorrow's leaders. Well, Steve, I couldn't have said it better myself. And Ron, always a treat to have you back on the program as we unpack these profound truths from God's Word. Well, thank you for asking me.

I always look forward to this. Ron, we pulled out an article that you wrote some time ago about the biblical priority for using money God's way. The good news is you've always taught us that biblical financial principles are always right, always relevant, and they're never going to change.

So I suspect they're still as true today as they were when you wrote this article. But I'd like for you to begin by just unpacking this a bit. Well, I think it was all prompted by a question that I was asked by the leader of a major ministry. And he said, what does a million-dollar giver look like? I had just done a financial plan for a client who gave a million dollars to that particular ministry. And my response was, well, if they look like they can give a million, they probably can't. You can tell by the lifestyle that they've chosen whether or not they have the likelihood of giving. And, you know, just a few years after I made that statement, there was a book that was written by a man here in Atlanta called The Millionaire Next Door.

And basically his research proved that, that the person who has the million, they have the million because they haven't spent it. Well, it's such a key point, and it really all comes down to lifestyle. And you've taught us for years that lifestyle is one of the biggest detriments to financial freedom and success, isn't it?

Well, it is. Lifestyle is typically the first choice that people make with their money. They have things that they want and like, and houses and vacations and so forth. And the problem with it, or not the problem, but the reality of it is this, that when you spend money on your lifestyle, you're always doing it with after-tax and after-tax dollars.

So if you were trying to fund a $50,000 lifestyle, for example, you would have to earn perhaps as much as $80,000, $90,000 to pay your taxes, pay your tithe, to have $50,000 left. And the problem is people spend it and they don't have that kind of income and therefore they get into borrowing and debt is always paid back with after-tax dollars also. So it's a vicious circle and lifestyle is maybe the biggest barrier to, I think, handling money well because we don't think of it that way. We have wants and desires and needs that we think are needs. So lifestyle is a big, big deal. And when you choose lifestyle first, it's going to be very costly. Well, and that's where contentment comes in, which is another big idea we see in Scripture, which is this willingness to live within God's provision, even though the culture, our world, the society allows you to live beyond it through debt. Oh, no question.

And you know, over the years as I've thought about it and talked to people and helped them build financial plans, you can calculate how much money it takes to be financially independent, but you can't feel financially independent. It's just a number. You can feel contentment. And so God wants us to be content because He provides everything that we need. And so no matter what I have, that is what I should be content with. And that's a commandment in Scripture also.

Be content with what you have. Absolutely. Well, I want to dive deep into Scripture just after the break and really unpack this. Are we to take a vow of poverty?

How do we reconcile having God's provision, enjoying it, providing for our families, and yet still being able to give? And then we'll look at these four biblical commandments as well. That's all right around the corner. That's right. You're listening to MoneyWise Live. Your host is Rob West. I'm Steve Moore and our special guest today. He's a special guy indeed, author and teacher Ron Blue. Our discussion today centering around four biblical commandments about money.

We'll be back with more after this. The financial wealth you leave behind could be the best thing that ever happened to your loved ones, or the worst. In Splitting Heirs, giving your money and things to your children without ruining their lives, Ron Blue explains why it's important to make these decisions now instead of forcing your heirs to do it later. Splitting Heirs will foster a real appreciation for the precious resources that God has entrusted to you.

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Well, certainly, the man replied. And Mr. Moody went on to tell this man about Jesus. You know, it's so easy to shrug off an opportunity to tell people about Jesus, but one of the things that 2 Timothy 4 and 5 tells us is that we should all be doing the work of an evangelist.

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That's christiancreditcounselors.org, or call 800-557-1985. Welcome back to MoneyWise Live. Our guest today is author and teacher, Ron Blue. Rob West, your host, of course, and we're discussing four commandments about managing money in addition to the ten that we're well aware of.

Rob? Well, Ron, just before the break, we were talking about lifestyle being one of the biggest barriers to financial success and freedom when we live outside of God's provision, often funding our lifestyle, our spending with debt. Let's now dive into scripture to see what God has for us as we try to understand what he's called us to in this area. Clearly, one of these ideas is that the Bible teaches that we're to enjoy God's blessing. Isaiah 44 reads, For I will pour water on the thirsty land and streams on the dry ground. I will pour my spirit upon your offspring and my blessing on your descendants. So we're not talking about taking a vow of poverty in this area of lifestyle, are we?

No, not at all. What we're talking about is God is the one that provides our income, and that's the primary truth to remember. You know, I did a lot of traveling to Africa many years ago and worked with missionaries over there, and they worked really, really hard and didn't make a lot of money.

And then I come back to America and do a financial plan for a heart surgeon who worked, he worked hard too, but he made many, many more times. If they were both following God's calling, then they were earning what God intended them to earn. And that's why it's important to say, be content with what you have and say, God, you've called me to do this. Therefore, there's an income associated with what you've called me to do.

And that is sufficient. And when we start looking at moving towards what can I do to make more money, we really put ourselves at risk in terms of being content with what God provides. But how do we reconcile some of these inequities that we see? So you describe the physician who perhaps may work several days a week and make 20 times what a missionary working many more hours makes. Well, we reconcile it with the fact that it is God who provides my income. And I counseled a lot of people who said, you know, a teacher, for example, there's another illustration of people who work really hard, have great impact, pastors many times. So there's a lot of people who are in ministry or ministry-like activities that they don't have the income. And that's okay. I am earning what God provides, doing what God called me to do, and I'm content.

That's helpful. That really sets up these four biblical commandments for money that we were talking about today and that you outlined in your article. These form really the basis for using the income God provides to the individual or the family. So let's dive into number one.

Okay. Well, there's several commandments in Scripture. And one of them says, give as God has prospered you. First Corinthians 16, two, it says, honor the Lord from your wealth and from the first of all of your produce in Proverbs chapter three.

So there we're commanded to give and we're commanded to give really the best and first. And I tell people that if I look at your tax return over years and your income's going up, I should be seeing an increase in your giving, not in dollar amounts, but in percentage amounts also. I think that's a real sign of a person who understands God's ownership and God's provision is that God gives you things to give. And a lot of people, as they approached late or near retirement or whatever, they already paid off all their debts. They've sent their kids to college and they have extra money. It may very well be because God wants them to use that money to give to further his kingdom. Yeah.

I know you've said God prospers us not to necessarily raise our standard of living, but to raise our standard of giving. And that's a key point here. All right.

The second one has to do with a word we don't like to talk about, right? Right. That's taxes.

And Jesus said, render under Caesar what is Caesar's. And people do not like to talk about taxes. They do not like to pay taxes. But I have a different perspective on taxes. And my belief is this, living in America now, we only pay taxes when we have income.

Okay. So the best way to reduce your taxes is to reduce your income. And you know, nobody wants to do that.

Nobody wants to do that. My belief is this, and I practice this on, I pay tax estimates. So on those dates, I literally get on my knees and thank God that he's given me the income that I have to pay taxes on and that I have the ability to pay those taxes right now. Because taxes are a symptom of God's provision.

Wow. What a different perspective than we often approach our taxes with. They are symptomatic and really evidence of God's provision in our lives. And so therefore we should be thankful. I appreciate that, Ron. All right. So we should give, we should pay our taxes. What's the third commandment? Let me back up just a second.

All right. Taxes. And the reason I want to back up is because we do a lot of teaching in high schools. And what we found is when we're teaching a high school student, they have no idea what taxes are for. Teachers are using that in some cases as an opportunity to say, you're living in a country that has a military, it has police, it has roads, it has water, clean water.

It has a lot of things that taxes go for. So it's not like you're being robbed. It's that you're paying your fair share, if you will, of the things that are provided.

The other one is the wicked man borrows and does not repay. So that's debt. So we're talking about giving. That's one use of money. Taxes are a use of money and the wicked man borrows and does not repay. So taxes are a priority and debt repayment is a priority also. And debt is a lot like taxes in that when I borrow money, I get it all at once. Let's say I borrowed some $10,000 from the bank.

I got $10,000 in my hands. But when I have to repay it, I repay it with after tax dollars. So I have to earn enough to pay my taxes, to pay my tithe, to pay off that debt. That's why when I'm talking to students, for example, the average student debt is 37,000.

But that take — with no interest, that would take an income of $50,000, $60,000 to repay the 37,000 that I borrowed. So it's really for our protection. When the wicked man borrows and does not repay, it limits our borrowing. Yeah.

So that's very helpful. We've got just about a minute remaining. So we're to give, we're to pay our debts, we're to pay our taxes. And then what's the final commandment? Well, the final commandment is in 1 Timothy, chapter 5, and that is this, that a man is worse than an infidel that doesn't provide for his family. So provision for my family is what is required. And I'll never forget Larry Burkett's teaching on this years and years ago.

And Steve will remember it well, too. The question is, what is provision? And the Bible doesn't say what provision is. And Larry and myself would say this, that God wants me to live by faith. So I have to go to him and say, Lord, what is the right standard of living that I should be living with? And if the Bible said you should live on 37.6% of your after-tax income, that's what we would do. But it's a matter of faith to determine what my proper lifestyle should be. Yeah, that's really helpful.

At that point, then, it's all about priorities, and we can find those in God's Word as well. Ron, thanks for joining us. Thanks for having me. And you can read more from Ron Blue. His book is called Master Your Money, a step-by-step plan for experiencing financial contentment, available at MoneyWiseLive.org.

Your call is next, 800-525-7000. Stick around. Would you like your life to be infused with joy? Would you like to interject an eternal dimension into even the most ordinary day? Author Randy Alcorn says you can when you discover the Treasure Principle. In a concise, power-packed style, this newly revised and updated book offers a six-step plan to finding the immediate pleasure and eternal rewards of the Treasure Principle. And once you discover it, life will never look the same.

The Treasure Principle is available when you click the Store button at MoneyWiseLive.org. Hebrews 4-12 says, For the Word of God is quick and powerful and sharper than any two-edged sword. Here's Beth Moore with a quick word. We cannot base our view of God and even the concept of election on half of Romans Chapter 9. I believe the Word of God is inspired, God-breathed.

It is true. But it's not all there is. And we cannot take one half of a chapter and determine that's how God does things and let the rest of the whole counsel of the Word of God fall somehow into the ditch. Any time we see a concept of Scripture, we want to then go, study it alongside the whole counsel of God.

If we're studying theology and we are going to study principles of the Word, principles are things in the Word of God that are consistent across the board. Because there are many things that shed insight and light on this that bring a broader understanding or maybe a broader muddying. Sometimes a good lesson clears the waters and sometimes a good lesson muddies the waters. Sometimes we're just so sure of what we know something to mean. Sometimes good study is that we lift up our head and we're not as sure as we were.

And we bow down the sovereignty of God as Tozer said and say to him, oh Lord, thou knowest. You've been listening to A Quick Word with Beth Moore. Join Beth for the online experience releasing September 15th at BethMoore.org.

And thanks for listening to A Quick Word with Beth Moore. Money and life run on the same track. But unfortunately, sometimes it seems like your money is heading in a different direction from your goals. In Never Enough, Three Keys to Financial Contentment, author Ron Blue helps you to break down all your financial options to a basic four and then shows you how to keep it all chugging along in the right direction on the same track. Never Enough, Three Keys to Financial Contentment, available when you click the store button at MoneyWiseLive.org. Hey, welcome back to MoneyWise Live.

A real joy and a pleasure to have you with us today. After all, what's a call-in program if there are no callers? So here's the phone number again, 800-525-7000.

And we have, oh, at least a half a dozen open lines. So this would be a great time to call in whether you have a question or a comment or a concern. Give us a call. Let's chat about it. We'll see what the Bible has to say about it. That's where we start always. 800-525-7000. Rob, let's begin by going to Alabama.

And Ken, thanks for holding, sir. What's on your mind? Well, I'm a school principal at a very small Christian school. And I realized that anyone can gift an individual, I believe it's $15,000 each year without there being any tax obligation or consequence to either parties. But we have recently set up a teacher fund because one of our donors was concerned at the low salaries our teacher make and or the low salary that our teachers make. Anyway, he sent a check for $10,000 to establish this fund. And he said, you know, it would really be nice if you would evenly distribute whatever amount of money is in the fund around Christmas time as a Christmas gift. And you know, with these GoFundMe pages where individuals fund a particular event or individual, I believe that money is distributed tax-free to those individuals.

And I was just wondering if we could kind of act like a clearinghouse and whatever money is distributed to our teachers, if it could be kind of on that basis where they wouldn't be taxed, you know, as income tax. Yeah, yeah. Well, interesting.

Yeah. What you're describing here and I certainly appreciate the heart behind it. You know, the real question is just whether or not it's going to be tax deductible to on the part of the donor or for the benefit of the donor. And here's the distinction there. And I would check with the CPA or tax prepare for the school just to run all of this by a professional. Make sure to be sure everything you're doing is, in fact, in line with the IRS rules and regulations. But the general premise behind this, Ken, is that designated gifts to organizations for specific projects or needs are generally tax deductible. The key is it can't be for the benefit of a specific individual. And ultimately, control has to be on the part of the receiving qualifying charitable organization. And so the donor could specify or designate a particular fund or project that they're given and giving it to telling the organization how they want that to be used, but which differs from an unrestricted gift where the organization could use it however they like.

The key, though, is it can't be directed to a specific individual. And ultimately, the school has to decide, even though they may take the recommendation of the donor, ultimately, the school is in control of how, how much, when and to whom the money is used and when it's passed on. If it's coming from the school, it's going to be seen as compensation.

And so the school would have to handle that appropriately. Now, with GoFundMe, you're right. The donations that are made through a personal GoFundMe fundraiser are generally considered to be personal gifts, but they're not necessarily tax deductible because they are going to an individual. And so I think that's where you've got to work through ultimately what the donor or donors are trying to accomplish. If they want to be able to make a tax deductible gift to the school because the school is a not for profit organization, that's great. And they can make that designated to this particular bonus fund or Christmas fund. But ultimately, the school is going to have control over how that money is dispersed, when and to whom, even though recommendations may be made alongside the gift. So that's kind of generally the way this works. But again, I would always run the specifics of what you're trying to do by the tax professional just to make sure everything is in line. Does that make sense though?

Well, it does. And I failed to mention that, of course, we would offer a receipt, but it would be clearly stated upfront that any gifts to this teacher fund would be they would not be tax deductible because they would be, you know, a gift from that individual. We would be kind of acting just like a clearinghouse. But like I said, I want to make sure it was ethical and legal as well.

Yeah. And I think that's where you need to get some tax advice there. Just on this distinction between if it's a non-deductible gift, can you just pass it through and it not be taxable to the teacher or in the event it is deductible. So you issue a tax deductible receipt. It's made, again, not to an individual but designated to a particular fund.

And then it is paid out as compensation. I think you could explore both options. But I love the spirit and the heart behind what you're trying to accomplish.

And I'm confident there's a way that you can do it to honor everybody's intentions and desires and yet still be fully in compliance with the IRS rules and regs. Ken, thank you very much for your call. Nice to hear from you, sir. We wish you and your school the very best. God bless you. 800-525-7000.

Let's go to Indiana. Sarita, did I pronounce your name correctly? Sarita? Yes, that's correct.

That's a beautiful name. Thank you for calling us today. What's on your mind? My question is, as far as life insurance and like a death benefit goes, would we... I know that Ron, I think, was talking about like on the increase, you tithe. So that was kind of my question. Like, would I tithe on that? And then that was just basically my question.

That's a great question. And if you're trying to honor the principle of the tithe, which would be giving from your increase and keep in mind the word tithe means a tenth, then you would give based on that increase and I would include life insurance proceeds as a part of that. It's essentially a replacement for lost future income or provision and which you would tithe on as increase as well.

I think perhaps an exception there. And again, none of this is intended to be legalistic or checking a box. It should all be done as a cheerful giver, giving proportionately as an act of worship and obedience to the Lord. But obviously, if you're trying to give your first tenth off of the increase and you want to know how to apply the tithe, I would say, yeah, see that as God's provision, part of God's increase and give right off the top. And I think certainly the Lord would be honored there. The one exception though I would make is perhaps with an insurance settlement. So you have a loss like a home that's damaged or a car and then the insurance settlement or proceeds is essentially to replace the value of what was lost. Well, there's not really an increase there.

But in this case, with life insurance proceeds, I would see it as replacement of future income and for that, I would tithe on the money. But we appreciate that question. It's a good one.

Yeah. God bless, Sarita. We do appreciate your call today. Thank you. When we come back, we'll be speaking with Ella, Janet and Sidney.

Oh, let me try Cindy. We'll be right back. How should we as Christians think about investing? What if we could invest our money in a way that aligns with what we believe? At Eventide, we believe it is possible to love God and love our neighbor in the very practice of investing. We design investments for performance and a better world so you can invest for the future with a sense of wholeness and purpose. We call this investing that makes the world rejoice.

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Hi, my name is Lyle and I'm a worship and media arts major at the Moody Bible Institute. The Moody Radio Verse of the week is found in Psalm 127 verses one through two. Unless the Lord builds the house, those who build it labor in vain.

Unless the Lord watches over the city, the watchman stays awake in vain. It is in vain that you rise up early and go late to rest, for he gives to his beloved sleep. And that is Psalm 127 verses one through two, the Moody Radio Verse of the week. We all long for something good, true and secure. There's a hunger for a hope that goes beyond politics and entertainment and reaches deep into our souls. That hunger can only be satisfied by Jesus. For more than 90 years, Moody Radio has faithfully delivered that message of hope to millions so they can take the next step in their walk with Christ.

Call 1-800-DL-MOODY or visit moodyradio.org. Do you know if you have enough? Enough money? Enough house?

Do you know how much is enough? If not, Ron Blue can help with his book, Master Your Money, a step-by-step plan for experiencing financial contentment. Learn how to save, invest, and give wisely, how to create a long-term financial plan, and how to get out of debt.

You'll find it all in Master Your Money by Ron Blue, available when you click the Store button at MoneyWiseLive.org. With SRN News, I'm John Scott. As thunderstorms threaten, President Trump sped through a VJD speech during a visit to Wilmington, North Carolina. The President trumpeted American strength and appeared before a World War II era battleship to declare the port city of Wilmington a World War II heritage city.

He honored war veterans, including 97-year-old Herschel Williams, the sole surviving Marine from the war to receive the Medal of Honor. The federal budget deficit is projected to hit a record $3.3 trillion, as huge government expenditures to fight the coronavirus and to prop up the economy have added more than $2 trillion to the federal ledger. United Airlines says it plans to furlough 16,370 employees in October. That's down from an earlier target of 36,000. On Wall Street, the Dow picked up 454 points today, the Nasdaq ahead 116. This is SRN News. Welcome back to MoneyWise Live, where your checkbook and God's book meet to have an impact on your life and the lives around you. And we have a brand new resource that we also think might have an impact on your life in a great way. Rob, you want to tell them about it? Well, I'd be happy to. We revealed yesterday something we've been working on for eight months.

That's right. It's the brand new MoneyWise app, and it's available right now for you to download at no cost. It's in the Apple App Store or the Google Play Store.

Just go wherever you get apps. Search for MoneyWise Biblical Finance. You can download it, and it will help you to manage your spending plan. You can even connect it to your institutions if you have a pro account.

But there's no charge to manually populate all of your envelopes and put your income in there and see all your transactions. You can even develop your budget inside of it. You can listen to our broadcast, the live stream of the Moody MoneyWise Live broadcast each day, as well as all of our broadcast archives. You can even connect with the MoneyWise community. Post a question. I'm active in there, would love to respond to you, and search for a Certified Kingdom Advisor.

It's all there in the MoneyWise app. Go get it today. Rob, you mentioned we've been working on this for eight months. Why has it taken us eight months? Was someone specifically dragging their feet?

Do we have some people that need to be dealt with, Rob? Well, next time you develop an app, you'll figure out how long it takes. But it takes a long time. And we've gone through the alpha stage and the beta stage, so you've got to do all the testing and squash all the bugs, but it's ready for primetime. And that means, I think, Steve, you can probably navigate this app too. Thank you very much. Thank you.

I appreciate that. Even if you're an analog guy, you're going to love this digital app. And as we mentioned yesterday, it's in color, all the colors of the rainbow. And you're going to love it.

And yes, even I am able to work my way around it and through it and use it. And you are going to love it. Let's continue on here.

Hickory Hills, Illinois. Hello, Ella. You're on with Rob. Hi, how are you? Great. Thanks.

Hi. I have a question about what to do with some money that I have in the bank. So I don't want to make it a long story, but I became a widow at a really young age. And my younger son is ending his benefits now.

So I was receiving benefits for two of my boys, but both of them are ending for me and for them. And I have some money. I recently became debt-free, so I don't owe any money anywhere. But I have a chunk of money in the bank, and I don't really know if I should invest it or just keep it in the bank.

So that's my question. Well, Ella, I'm delighted to hear that you've managed God's money well. You've obviously purposed yourself to live within your means. You've gotten to a place where you're completely debt-free. I'm sure that feels really good. Being a single parent, I know how challenging that can be.

I've counseled with and walked alongside hundreds over the years and know how difficult that is. So congratulations for really a job well done and stewarding God's resources. As we look at this money that you've amassed, I think we've got to really look at it in light of the priorities moving forward that God has given you, and look at those in light of your values. What is God doing in your life, and what goals do you have, and how can we allocate God's money in such a way that it's there for you now in the form of emergency savings and when the unexpected comes, and it will, and for the future, major expenses down the road, maybe paying for college or even longer term than that when it comes to retirement, when you're no longer able to work, having assets that have been built up to supplement retirement and provide income to you.

So let's talk about those things. You've made it very simple because you don't have any debt. So tell me, beyond this nest egg, and by the way, tell me how much it is you put aside to start with. $70,000.

Okay, great. $70,000. And do you have any other liquid assets other than this $70,000? Do you have a separate savings account or anything like that?

No. Just like that check. Okay, great. In that, obviously, you've got money that comes in. You use that for your budgeted expenses. Do you operate on a budget?

I try. Okay, so that might be the next thing to do is to have a written budget. I'd take 30 days and track all of your spending, and I want you to get into that budget, Ella, not only the things you get a bill for, but those non-recurring or those discretionary expenses, those things that you spend money on that is part of your lifestyle, could be eating out, even those non-recurring bills, things that don't come every month. I want you to try to get all that in there and either get that on paper or go download our MoneyWise app and use that to track it. Whatever it is, you need a spending plan. And I'd love for you to get to the place where you have a little bit left over each month. Do you usually have some left over in your checking account at the end of each month?

Yes. Look, I'm horrible. I think I manage money really bad. It's all thanks to God that I'm debt-free. But yeah, I believe that I have money because I don't spend that much. Okay. Well, the plan is really going to help you make sure that you're spending money in a way that aligns with your priorities. And so we want to know not only what are your budget expenses, but how much can you count on as margin or surplus every month?

All right. What would you expect, and this is going to be a rough estimate, the total of your expenses are on a monthly basis, $2,000, $3,000, $4,000, how much? Maybe like $1,500. $1,500 a month.

Okay. So if we were to put six months' expenses aside, you'd need to have $9,000. So that might be a good starting point is to say, of this $70,000, we want to put $9,000 in your emergency savings account. If you wanted to do less than that, you could. For instance, if you wanted to put three months aside, you'd need $4,500.

But somewhere between $4,500 and $9,000, I'd move to a separate savings account, probably an online bank like Marcus or Ally or Capital One 360, where it's linked to your checking and it's there for emergencies. Beyond that, do you have any kind of medium-term goals that you're saving for, buying a new car, college, things like that? No, not really. Okay. All right. What about retirement? Are you saving for retirement in a company-sponsored retirement plan or an IRA or not anything like that currently?

Well, from what I know that at the age, I think, of 55, I qualify for widow benefits. Okay. All right.

And that would be for Social Security. But are you working right now? Yes. Okay. And do you have access to a retirement plan at work? No. Okay.

All right. So what we probably want to do is think about where you can be saving on a tax-advantaged basis. At the very least, you probably want to be putting in $6,000 a year into an IRA. And you can go open a traditional IRA at Vanguard or Charles Schwab. One of the discount brokerages where you could begin putting that money in, you'd get a deduction on what goes in and then it grow tax-deferred. Then when you pull it out in retirement, you would have that money and you'd pay tax on it. So I want to get as much of this growing on a tax-deferred basis as possible. The rest of it, as long as you have a time horizon of 10 years or more, you certainly could invest it. I would consider having an investment professional though advise you on that.

You could do it yourself. Our friends at soundmindinvesting.org would be a great resource. But I would probably recommend you connect with a certified King Kingdom advisor there in Illinois to make sure you've got the right insurance, make sure you've got a good plan for how much you need in retirement to fund your lifestyle, and what to do with this roughly $70,000 minus the amount you're going to set aside for emergency savings. So I think that's really where you need to be focused moving forward. Set up the budget, open the savings account, put in between $4,500 and $9,000, and then connect with an investment professional to get the rest of it working for you. Ella, we're glad that you called today and we hope that information helps you.

Thanks so much. This is MoneyWise Live with your host, Rob West. God cares a great deal more about our money than most of us imagine. In fact, Jesus says more about our use of money and possessions than about anything else, including both heaven and hell. In Managing God's Money, author Randy Alcorn breaks it all down in a simple, easy-to-follow format that makes it the perfect reference tool if you're interested in gaining a solid biblical understanding of money, possessions, and eternity. Managing God's Money is available when you click the Store button at MoneyWiseLive.org.

Hi, I'm Barry Maguire. I'm here to help you understand how urgent and how fun it is to share your faith at every opportunity through the eyes of a layman. This may come as a shock to you, but you're already in full-time ministry. If people know you're a Christian, Matthew 5-14 explains, you're like a city on top of the hill that cannot be hidden. You're representing God and everything you do and say is leading everyone watching you closer or further away from God.

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And as we order, my kids and I think we need the gotta have it size and my wife says, come on, do you really need it? It got me thinking though about my relationship with God's son. Do I like him? Do I love him or have I gotta have him?

And maybe that's where you are right now. Your relationship with Jesus is just that, it's your relationship. Have you been holding back and just tasting Jesus or do you want to find out more by stepping out and saying, I've gotta have you. To find out more about the life that Jesus has for you, call 888-NEED-HIM. That's 888-NEED-HIM.

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Navigating the Mortgage Maze, available when you click the store button at MoneyWiseLive.org. Hey, here's a great verse on giving and generosity. And if I give all my possessions to feed the poor, and if I deliver my body to be burned, but do not have love, it profits me nothing.

1 Corinthians 13, 3. Warrenville, Illinois. Rob, let's talk about 529 plans with Janet. All right, Janet, we're so glad you called today.

You're on MoneyWise Live. Go right ahead. Thank you, gentlemen.

Good afternoon. I'm calling because my son—we've had a 529 for him, and it's had many hiccups and changes. And unfortunately, the last firm has poorly managed and it's actually lost money the last three and a half years. And so I'm in the process of transitioning to self-directed. He is a freshman in college, and I have some money that I need to invest. And I'm wondering, does it make sense to go ahead and put that money in the 529?

There is a tax penny here in Illinois if I do that. But if so, what strategy would you recommend, understanding that he's in college, he's 19, we want the money to grow and not lose ground? Yeah, so the money that you're putting in would be used for your son who's already in college, is that right? Correct. Yes. Okay. And so really, you're not looking necessarily for the money to grow because it's going to be—need to be managed very conservatively. You're mainly doing it because you want the tax deduction for the state of Illinois? Well, I guess I'm looking both for the tax benefit and also for the opportunity to grow it some to try and rebound what the other firm lost, if possible.

Sure. You know, because— Yeah, the challenge that I've got here, Janet, is that the time horizon is just not right. You know, typically you would want to—any money that you'd be invested in the stock market, you'd want at least a five—at the very minimum of a five-year time horizon, preferably more like 10. And so you're counting on a short-term move in the market, which in any, you know, short-term period, the market can go any number of directions. Really what we want is the long-term play in the stock market.

And so I would say, given that he's already in school and this is money that's going to be used in the next couple of years, it really is not the time to be investing necessarily because you're consuming too much risk and you potentially, when you need it, may have to sell at a loss. I mean, we saw a major selloff this year that was event-driven because of COVID-19. We've seen a massive recovery in this back half of the year thus far. And who knows what's going to happen next year. We've got a presidential election coming that could go a couple of different ways.

We've got just all kinds of things, not to mention we still haven't seen the full effect of, you know, some of the ramifications in the economy from the pandemic. But I think given that, as much as I don't like the fact that you've lost some money, I realize, you know, that's a reality anytime we invest. And I'd probably, I mean, unless it makes sense for the tax benefit to put it in the 529 and just keep it in one of the stable accounts, I wouldn't be trying to be overly aggressive at this point to, quote unquote, recapture your losses because you just don't have time on your side. And that's taking a bit more risk than I would be comfortable taking at this point. All right.

So, all right. So I need to go conservative versus moderate because I wouldn't do aggressive. Yes, I wouldn't just because the time horizon isn't right. So make sure that it still makes sense for you to do it through the tax benefit.

But if it does, then go ahead and do that and then just keep it in the in the more stable investment options. Great question, though, Janet. Thank you very much. We wish you the best with that.

Cleveland, Ohio. Cindy, you are experiencing quite a conundrum here. Let's talk about it.

And how can we help you? OK, thank you for taking my phone call. Sure.

Yeah. Still trying to figure out what the message here. But my August was full of calamity in my home, which is about 60 years old. The air conditioner went, the washer went, the sewer backed up. And I had the money to pay for all of that. But then on Friday, there was a storm and lightning hit my house and all my major, not all, but a lot of my major appliances were affected. I do have insurance, but there's like one thousand sixty eight dollar deductible. I have a colleague that has we're both believers in Jesus.

And we are just that's where we connect at work is just on our love for the Lord. She said, listen, I somebody just fixed my car for free. I wasn't expecting that. I want to pay for your deductible. I don't want you to even worry about it. I have never accepted a gift like that before and I'm uncomfortable doing it.

I would have to rob from Peter to pay Paul to to cover that deductible. And I just I don't know what the Bible says. I don't know.

I don't know where I should go on this. Yeah. Well, Cindy, I can appreciate what you've been through. And yet I know that it can be difficult to receive. That's just a reality, especially if that's not something you're accustomed to. Perhaps you've been more on the giving in than the receiving in.

But it doesn't mean that it's not something you should perhaps see as an area that you can. The Lord is stretching you in because, frankly, this is the body of Christ coming together. It's a design that's been there going all the way back to the the New Testament church and acts. And even before that, where Christians bear one another's burdens and to to some that have more than they need, they're in a position to help others who don't have the same amount and are in a difficult period. And I think being willing to say, you know what, even though this is slightly uncomfortable for me, I'm going to see this as part of God's provision to me. And if that's what he's leading you to do, assuming this is a believer, then I want to accept that and know you let you know how grateful I am and proceed.

You know, unless there's just some other extenuating circumstance here, I think perhaps this is an area where the Lord may be asking you to do something that's uncomfortable. And yet this is going to be a blessing for that person who's now able to experience the joy that comes with generosity. So I might push back just a little bit on you and say I would think and pray hard about perhaps being willing to receive this gift out of the generosity in which it's being given and not allow that individual to miss out on the blessing that will come from that.

But tell me your thoughts. Yeah, I have a hard time. I'm a single mom and didn't get any child support, so I'm kind of used to, you know, carrying the burden. Well, perhaps seeing it as, you know what, number one, this is God's provision to me. And number two, I don't want to rob this individual of what they may receive in the form of a blessing by giving it to me. Not that there's this cosmic vending machine and if we get, we're going to give, we're going to get. I'm not saying that at all, but we know that when we give, there's incredible joy that comes from that. There's blessing that we experience by just being able to help somebody in need. And I would see this perhaps as a way for you to allow this person to experience that as they give to you.

Now, at the end of the day, if you're just uncomfortable with it, I'm sure the Lord perhaps will provide some other way. But I would just say before you push back, think and pray about maybe receiving this gift in the manner in which it was presented to you. After all, Cindy, you already told us that your colleague received the gift of having her car repaired for free, and that probably caught her off guard.

And yet she was able to accept it. So perhaps you with the same spirit in Christ could see your way through to accepting her gift to you. And I'm sure God will probably give you an opportunity to pay it forward one of these days. We're going to have to let you go. We're almost out of time, but Cindy will be praying for you and your family. And we'll ask all of our MoneyWise live listeners to do the same. And we're glad you called. Please keep us posted. Let us know how things work out.

Orlando, Florida. Around we have just a little bit of time. What's what's your situation? Hey, how's it going? Great. Hi, Ron. All right. Thank you guys for taking my call.

Hey, real quick. So I've been affected by the pandemic and COVID here recently. And just considering, you know, with all that's going on and things like that, making a withdrawal from my 401k in light of the CARES Act.

I know that, you know, there won't be any penalties, but there will be taxes, of course, and things like that. My question to you is because on that same 401k account, I have an outstanding loan that needs to be paid. I was thinking and considering of making a withdrawal and taking care of that loan possibly and also taking a little bit out just as a little cushion per se, not knowing what's ahead of me, as far as the jobs going, things like that. I've got a big night size family. So, you know, like, I really take thought into what you know, the decisions I make, you know, with the money and things like that.

So Yeah, I can appreciate that. We're short on time. Let me give you my thoughts. You know, I would see, Ron, this is some of the most expensive money you have access to.

And the reason is primarily twofold. Number one, it will be taxable to you. So you're going to, you know, take right off the top, let's say, for the sake of argument, 20% hit on this money right out of the gate, number one. Number two, this money is then no longer available for your future.

You know, it was there, obviously, to grow and to have down the road. So I would say, you know, assuming you have the provision you need, and I realize perhaps there's some question about what that's going to look like moving forward. Yes, this is an asset that's there, but I would see it as a last resort. And just because there's the provision in the CARES Act allowing you to miss out on the penalty doesn't mean I would be quick to pull money out of this 401k. So I would say, what can I do to continue to honor my obligations and provide for my family moving forward within God's provision without tapping into this asset? And perhaps one way to do that moving forward is to dial back or temporarily suspend new contributions to the 401k.

But I would try to avoid, if at all possible, pulling money out and paying the tax on it right now. Ryan, thank you very much. Glad you called today. We appreciate that.

And with that, we're going to have to kind of put a bow on it for today. Rob, thanks. Always a pleasure.

We'll come back tomorrow and try it again. All right. I look forward to it, Steve. Thanks.

All right. Thanks. And again, I want to thank my technical crew who are always here bailing me out. That would be Amy and Deb.

And today it's Gabby T, Jim Henry, always here, of course. And thank you for listening. MoneyWiseLive is a partnership between Moody Radio and MoneyWise Media. If you like the program, do us a favor and let a friend know. Visit our website MoneyWiseLive.org and have a great evening. Drive safe. Join us again tomorrow for MoneyWise Live.