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April 5, 2021 8:03 am
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Then we take some calls from cross-country.
However, today's edition of the program is not lively, I'm Steve Moore. Wise live with Rob West is to ask Howard is whether he's ever purchased a lot of trouble maker are just more Howard welcome back to moneywise and also you only have to answer that if you want to know 11 Rob got a get rich quick problems, 21, five steady plodding brings prosperity, brings in the Bible how something so true you made that very clear.
Let's take level you think it's wrong Howard for state governments to even operate lotteries. Every time I go into a convenience store and people in line buying lottery ticket can't afford to waste their dollars by millions of dollars in state court, smiling, happy winners, you know, what about family that literally are being destroyed again.
True, it's a real sex so many and that's why I couldn't agree more with what you say some Howard will argue though that state lotteries generate revenue for very worthwhile programs. How do you reconcile that will in the education or something like that in reality it's just another way to tax people is one gambling in the lottery and in our country. Believe it or not. There are over six pathologically and describe a lot of low income people pay for submittal income down gambling is huge. What about the person on the receiving. Let's say you're taking a vantage of the scholarship or some other programs that's funded by a lotteries as a believer you think that's wrong.
Lottery tax people to provide services and remember not all of my dictation to general operating expenses so I think it's quite all right.
That's exactly right. Howard really when we look at the Council of Scripture we see the heart of God. You talked about the passage that clearly says we shouldn't strive to get rich click but we just have to understand that as a steward managing God's money. This is not the way he wants us to use his money right we need to we took no gamble today by contacting Howard Dayton to address the subject is an author, teacher, the former host of this radio program joins us by phone away from his home stomping grounds today, but as I mentioned, were able to get him with this and he's always a joy and a blessing to have a long providing and sharing his expertise.
Today's broadcast is recorded so we won't be taking any calls but we have some calls lined up in some great information coming your way.
This is moneywise not Steve Moore retired his cohost and Rob West needed a vacation. So this weekend's encore presentation.
Wise live. So what does the Bible say about gambling. Well, it says a little and it's not totally clear on the number of social issues that we might ask about today so we brought our good friend Howard Dayton, the founder of compass finance is God's way to share what he knows and believes about the subject of gambling that unfortunately is so prevalent in today's society or host of courses. Rob Westra, Howard. You made it very clear that this is not God's plan for God's best for his people. You took us to Proverbs 21. Hasty speculation brings poverty and clearly gambling would fit into the hasty speculation category. Let's flip the coin though and talk about those that perhaps do play the lottery and happen to when they might be thinking that if that was them.
It's happily ever after and from then on what you say that winning the lottery are little better than I know your backyard. Not much that many lottery winners finally experience just the opposite of happily ever after. A lot of them end up divorced or going to bankruptcy and really didn't have their character developed by learning to handle money wisely and watching it grow little by little money by handling smaller amounts of patient artwork not turning them into bigger some knowledge Rob instant lottery winners.
Often their lifestyle completely out of whack and when you think about it. Naturally successful people gambling.
They focus on the base, especially those who know Christ giving saving and investing getting out of debt. 16 over long period of time allows them to when it grows and grows into a larger stop while you're exactly right.
And that's very well said. I'm sure though Howard that there some listeners out there today asking themselves. Wealth doesn't investing didn't fit into that gambling category because I'm putting money into some type of investment. Hoping to get a return on it, hoping it rises in value. Draw the distinction between gambling and investing will make a lot of money and do it to wisely takes their time does their homework.
If counsel from people who understand what they're considering investing in a different the person to really praise for God's wisdom and direction counsel before making an investment. That's not gambling now investments may go up just part of the acquiring an investment. Certainly, a person is investing their homework seeks God's direction counsel that that's not gambling does come down to at least in part to the heart attitude you have about investing your money whether you hear me, we, as you already pointed out to some investing could be gambling if your motivation is to just hit it big. You don't do your homework, your methodology and your your heart attitude.
It's all about being the kingpin out there and and the living a non-moderate lifestyle would take on the ceiling in the approach of gambling fundamental thing to remember not God or to tell that's required in stewards that managers that one be found faithful God. Everything we have people want to be faithful to manage it way is a world of difference when we're focused on wanting to please Christ in terms of handling money simply wanting to get rich about the principle of diversification.
That's got to be key. 11.
To divide your course and you do not know what may occur upon their overhangs and one investment but to diversify does make sense from the perspective not to do that you draw the distinction there Howard because clearly when we look at Scripture, we see that a part of our role as steward is to put God's money to work, but there are principles we should do with a long time horizon, Stephen, you just said we should diversify how we should understand what were investing in.
We see this model, even in Jesus parables where often the investor was the good guy Jesus was affirming that, so this should be a part of how were handling God's money, but we should do it in a way that's prudent and not this hasty speculation that Proverbs warns us against hard Howard were getting short on time here summarize just a few reasons why God's people should never gambling any form, even though the Bible doesn't specifically call it out as a sin and why would we like gambling so many people and I know you counsel as a gambler and Madden is crushing to the marriage, but also to their children and you know you set on the table and seen the tears in her heart break for me that's the reason why I just committed. I will never gambling one penny because I don't want industry to have one penny that could harm people feel my we get this call quite a bit of the program welding multiple times a year. Certainly, how was the stock market, not gambling. And again, how do we approach that and do we believe that the stock market is not gambling. Even though people do lose money doing so well. I think there's a clear distinction there, stay between gambling and investing investing in the stock market. We have a proven strategy.
We said God given goals that were not just speculating, but we have a well thought out plan were seeking wise counsel were diversified. Again, this is not about a get-rich-quick strategy. This should be for investing a long-term play.
Plus, we're putting money in real companies that have real sales and earnings. This is not just taking a chance on the odds which by the way, is already pointed out, are not in your favor. Not even close. So it's completely different and we don't need to look at these things in the same category. We really need to focus on what God affirms, and clearly that's investing for the right reasons and in the right way. Never gambling. So if you ever see Howard Dayton standing in a gas station in a long line of people.
He's probably just trying to pay for his guests right, you heard it here.
Amanda gambling the rest of my life the way I do something like that holiday know is a blessing to have them with us today.
He is the founder of Compas finances God's way, author, teacher for host of this program.
What hasn't this man done sir. Thank you very much for being with us today. Thank you for listening to moneywise live today. We're not lives.
If you hear that phone number. Please don't call them to stick around.
Lots of good information is so don't try to call stay there because we have lots of interesting calls all lined up and dance and perhaps one of them is something that you can really understand and relate to. So let's begin by going out to South Dakota and Brenda which are what you question today for Rob call wearing my we have no and we have been tied for the purpose of buying our light rapidly things happen where and how much land and many available time talking about how long hold it in the bank or should we be doing something temporarily delicate Kennedy. I'm not really can it take two years to find what were looking for. What is the right thing to well I can certainly appreciate that. Obviously you all demonstrated that you are willing to live according to God's principles you're completely out of debt you save for the future.
You have a plan you've been saving for this purchase of this land for your next chapter of what God has for you, and I think the key here is recognizing that when we have money that has a specific purpose attached to it, and that purpose I would say Brendan is less than five years, then I'm okay not making a return, especially in an environment on this. You want to get the best return you can and rates happen to be moving up right now and that's a good thing.
So where is you might've been getting 1/2 of 1% in the high-yield savings account with FDIC insurance in the past.
Maybe you can get three quarters of a point or even a point before too long. But the key for that money is that it's available when you need it.
So it's about the return of your money, not the return on your money because you don't want to lose value and then all of a sudden that's when the perfect property comes your way and that you're selling at a loss and you know you're dealing with the regret of that decision. So we just need to always match the investment strategy with the time horizon and again. Anything less than five years, especially two years or two months tells me that we don't need to have this in something that has the potential for principal loss so I would just find highest paying high-yield savings account.
Marcus now why capital one 360. Those will move up with interest rates and even though you're gonna look at the statement every month and be like seriously, that's what we are and that's what it's okay because you know why you're doing it and when you're ready to move. You can have your money available at a moments notice and be ready to respond this make sense though out and why not just letting your local bank. Yes, now I would be careful with your local bank. Nothing against your local bank but you could do a lot better and an online bank regardless of what the rates are no penalties, no fees same FDIC insurance. You can link it to your current bank checking account, but you can do a lot better on the interest rate so I would consider that alongside your current bank. Brenda, thank you very much that's quickly moved to Tennessee and Duane about three minutes should it can. You can can you condense it for so we can weigh in for you sure are we old people HSA component and try to weigh our options on some of the earth.
They HSA and I understand that they attribute or on annual you can carry over any particular year old. I'm just trying to way if there are any long-term HSA that I not seeing or not weighing in to try to make sure that were very good points and I think it's a choice that each person needs to make and feel comfortable with. I'm not a big fan of the flexible savings account because, as you point out lower contribution amounts and the big one for me is that it doesn't carry over which the HSA does.
I love the vacuum rolled over year after year, and it can be a very effective retirement savings tool where I find that it's most effective if you're generally healthy.
Wayne and you're able to max out your contribution and therefore not use it up, especially if you don't have small children running to the doctor every few weeks for the sniffles.
You know that kind of thing then and HSA can be a very powerful tool especially if your company is willing to contribute to it because they're not having to know assuming they were paying for all or part of your typical lower deductible policy there saving money by you going to a high deductible HSA. Usually they'll take the amount that they would've been contributing and you give that to you in terms of a contribution. If you got something like that and you could add something to it. Max it out let it grow tax-free. Even invest the portion that you aren't using and caring over year to year and then over time allow that to grow so they can be taken out in retirement as a supplement to what other retirement asset you have. That's where an HSA can really shine. But if you have underlying health conditions.
You know, things like that. Small kids just doesn't make sense financially on paper based on the way your company is handling it, then you may be better off taking advantage of the lower deductible plan and I think perhaps your next step is to go back to the company and find out exactly how much they're going to contribute. That could be a key piece of this puzzle and if you have further questions, give us a call when we do appreciate that call. Thank you very much and you're listening to moneywise live please Rob West times more if you haven't checked us out online. You might want to do that. Lots of free resources all day moneywise live.com' going if you thought you heard Steve Moore say goodbye.
Last week you, but we're giving you one more week form of encore presentations moneywise live Murphy, North Carolina hello Ruth, what you situation how can we help bail out not eight dollars left and I don't like do it alone and mortgage might dictate it or do you know someone who could help me well when I would do first Ruth and then I realize that this can be a situation. I suspect it's a high interest rate. Is that right there going in with 16,000 you know, just sending the minimum every month and living on a fixed income of $1200 is not a lot of margin there. Clearly, it can be frustrating because I imagine you don't really see the balance going anywhere and you just wondered how my ever going to pay this off I would start with our friends at Christian credit counselors. If you connected with a credit counseling agency okay if you do use the Internet. You have a computer room now okay well for the benefit of our listeners, it's Christian credit counselors.org would be the easiest way but if you want to call them. You could certainly do that. I'll give you the number it's 800-557-1985, 800-557-1985 and their wonderful folks. Here's what they're going to do, Ruth. They're going to go over this with you there to look at the creditor that you have there to help review your budget, they'll pray with you and encourage you. But the main thing is there going to tell you what they could get that interest rate down to see there's pre-negotiated rates that if you enter a credit counseling program. The account will be closed and you'll pay through them. But at this reduced interest rate on average folks will get out of debt.
80% faster and pay the debt in full. That would be my preferred approach. I'd rather you not put this against the house because some happens and you can't make that payment then your house is at risk right now this is unsecured debt and home mortgages secured debt secured to your home.
So let's try to do it outside of any additional borrowing, but we want to get this balance coming down clearly and of the way to do that, at least initially.
If it'll work for you would be through debt management program to give Christian credit counselors a call if you have any questions after that. I don't hesitate to reach and Ruth, be sure to mention to them that you're listening to this program and will continue to pray and if you are a member of the local church. Obviously you want to share this with them and asked them to pray with you, maybe even provide some help and assistance if they're able to do that. But please let us know how things work out and good to hear from you today.
Thank you to Indianapolis hi Pam, what's what your situation.
And yeah Pam you know it's not as effective in clearly that the real benefit and beauty of the Roth is the tax-free growth that you can receive over a long period of time.
The other issue with IRAs in general is that you have to have earned income so when you enter that retirement season. If you don't have a earned income.
You won't even be able to contribute but in terms of the benefit of the Roth as your in this retirement season or nearing it using the Roth as a savings tool when you're probably gonna be more modest or conservative in your investment strategy. You're not gonna really experience the benefits is much certainly as you would 20 years before that.
If you have a long time for the money to grow and you're able to be a little bit more aggressive in terms of the investment selection.
So if you have earned income you want to continue to contribute toward retirement. I probably look to the traditional IRA you're probably guessing at the higher end of your earning years. You're here at the tail end of your working life and so that deduction that you would get going into the traditional IRA would be a benefit to you right now and then that money would grow on a tax-deferred basis until you need it at 72. You have to begin pulling it out as a required minimum distribution so that would probably might be my best advice just based on what I know right here okay Pam all right got bless you.
Thanks for calling.
Thank you, Pam an email or two. I have one here from Akira Lena she says hello my name is Carol Lena I have a 17-year-old son. I would like to start a credit card for him so that he can obtain a credit score.
What's the best option. I'm not sure I can trust him just yet to have a normal credit card. Are there any options yeah yeah well on a couple of things clearly number one we just open for our boys that their 15 and 16, capital one money account, which essentially is a checking account. It's a custodial account in my name, but for his benefit and I with that he gets a debit card that he's able to use this wonderful smart phone app where I can move money back and forth and see all the transactions and now that he's doing some working roofing games at the church on the weekends is able to deposit his paychecks through the app and then he's using the moneywise app to manage that money doing some saving and of course giving and then his spending.
You know you gotta put gas in the car with driving right but here's the thing you asked about building the credit score and that's really not gonna do the trick because often with a debit card that's not going to be reported. So if you're looking specifically to build credit you the best way to go.
There would be either a secured credit card with. There's an amount on deposit in his name, and there are secured credit cards that will allow you to do that in the name of the minor or adding him as an authorized user, which means as long as you have good credit and that good credit is being reported every month. I would check first to be sure they report the authorized user to their account as well. Most of them do, and that good credit that you have by him being authorized user would also be reported to his credit report. The opposite is true that which is where this can go awry and that is if you ever got into financial trouble and missed a payment, or were unable to make your payments timely that negative information would be reported to his report as well as an authorized user.
So that's a bit of a double-edged sword. You just have to be careful there so I'd say I look at the capital one money account in terms of teaching him how to manage money but in terms of building credit. I would look to either a secured credit card or adding him as an authorized user.
Okay, great question and great answer up thanks. Here's another one. It's from JDR. This question comes to us through the moneywise app. Hey Rob, what books would you recommend for me to get started in trying to get my finances in order. Well, I love this and let me just give some context for the moneywise app that is the community portion so inside the moneywise app is our digital envelope system.
The best one I've ever used or discovered Taber all the best and most compelling content from biblical finance flows into one place. You gotta check it out. But then there's our community where you can ask questions, encourage each other and I pop in there from time to time as well and JDR posted this question in the community today and let me to say JD I would look to run blues, master your money's classic biblical side and the practical all the areas of financial planning are covered.
It's called master your money and it's by Ron blue and by the way, I'll send a copy out to you. Just send an email to us and let us be right back.
This segment of the broadcast corded. Thanks so much for being with us today and we hope will stick around and join its moneywise live were really pleased as punch that you're out there today. Thank you so much for tuning in listening and telling others about us Spokane, Washington, Dolores, what you question for Rob charged me with good Christian company.
Okay, so he's just checking your door so he specifically said I want you to call Rob and Steve and find out what they think is that right is Kim if I should never mind. I did tell me a little bit more about what you're trying to do. So you're borrowing some money for what purpose all about borrowing money. I like to borrow $20,000 because I like to enlarge my house so I can my sister because she is drug world for about 20 years and now she had all kinds of disability and she's been straight to the last about 10 years but she's got all the great things that are going on.
Yes, it's a divorce. You could be doing some home improvements to prepare for her moving in. Is that right, but I'm going to a larger room on back like little living room and bathroom and my two grandsons are going to build it but it cost me about $20,000 hunting like that material and tell me about your cash flow Dolores in your ability to repay that loan. Once you take it you have some margin on a monthly basis that you can use the pay it back, that I don't really want to use that. But we do have a rather large account and get a good Christian group and we will just pay for it not be a problem for that. Okay I guess I'm wondering why borrow the money in the first place. If you have the ability just to pay for it out of your excess savings or investments because anything you borrow is obviously going to have an interest rate associated with it.
You take a home equity loan or line of credit that's going to cost you up somewhere around 5% or more time and your you may not even be earning that much on where some of that money is parked right now assuming you have some money available, and so it it seems to me that that the best option. Again, I don't know the totality of your financial situation, but the best option would just be to pay for this out of either your savings or your cash flow without taking a loan now one of the options as far as loans are concerned. Well you would mention a Christian company to borrow from and you know you could look at in a Christian bank or institution is something like ECC you you could look at the thriving financial there credit union if you wanted to work with an organization that serve specifically Christians but I think at the end of the day. The key for you unless you have a conviction about working with the company is primarily focused on serving believers is to look for. First of all, do I need to borrow the money and does that make sense financially and an MI on the same page with my husband and are we in agreement because I think that's one of the keys before you get into debt and then to what type of loan. Should I get one of the terms meaning.
How is it going to be repaid and then what is the interest rate and you want to make sure all those lineup and so for me I would soak in the first question is do I need to borrow the money I would stop right there and just make sure that borrowing for this actually makes sense because it sounds like to me you will have the money.
Is there a reason you wouldn't just pay for it. I cannot tell Kristin I love it how many years before years now. That's incredible okay now. If you are going to take a loan, and the question is what type of loans do you have a conviction, Dolores. You are your husband you want to work specifically with an institution that is because there are no suit, Christian companies right there Christians inside companies and then there's those companies who are either operated according to Christian values or companies where the owner or management are believers or their companies that are focused on serving Christians, do you have a conviction you want to use one of those, only well okay okay so then what I would do is I would probably call or look it up online thriving federal credit union.
The thriving bride PHR IV ENT.
Did you have a computer okay all right okay so I would check out thrive and you can find firstname.lastname@example.org and then mention one other to her. It's called ECC. You ECC you and yet stands for the evangelical Christian credit union. I think either of those could serve you well and I would start there and talk to them about what the best options are for you to seek alone okay okay will very good. Why would check out both of those find out which one can serve you best and those are both the organizations focused on serving Christians and I'm confident they'll take good care of Dolores.
We have to run, but thank you very much for calling me wish you guys the very best. You sound like a very very generous sister.
Thanks Tampa Florida. Karen you're on with Rob West hi Karen you with us. Hello Karen Karen in Tampa are you there okay will long to you there. Karen I will be 13 or doing compromise offer in compromise, but they have an online tool that I can use to see if I qualify for that but one of the question is about my retirement account. Not sure what it means because it says retirement equity is under income) retirement equity. My question is what is it could be looking to enter yeah just for the benefit of our listeners. An offer in compromise is an agreement between the taxpayer and the IRS that settles the taxpayer's tax liability for less than the full amount.
Think of it as a debt settlement except the lender is the press. Now there's a form you're filling out to figure this out through their online tool Isis impact and that's all it is. I probably call them to clarify, I suspect, with their wanting to know is what is your balance in retirement accounts. So think, 401(k), 403B, IRAs, 401(k)s and Roth IRAs want to know how much do you have in retirement equity, so this is an at any assets that you have in your name that are inside retirement accounts and that's just one of those considerations they want to know as they offer in compromise that is considered to some extent because now I know I know I just want to make sure I enter number okay yes you very good now.
All the best to you in that process and hopefully that'll get you paid off and on track to pay off your IRS dad and we can move beyond that.
Thanks for calling today. Thank you Karen, rubbery say we put a wrap on it today, but first we do an email. We haven't done one in a while okay okay I just comes to us from Jenny she says dear Rob and Steve how I balance my desire to become debt free and yet increase my giving yes this is the priority question and I love this question because here's the thing. Both of these ideas are supported in Scripture right. We should strive to become debt free. The Bible is clear that borrower is slave to the lender and so we want to be debt-free over time. It's can give us more flexibility, more freedom when we are unencumbered yet. We also want to be giving. We want to give generously and we should be striving to give more.
I believe over time we start with our giving systematically to the local church and we get beyond that sacrificial he but when you do if you both than most people do and I think you've got to prioritize this. First of all by praying and asking the Lord what he would have you to do. I would say if you have high interest credit card debt.
We certainly want to be systematically giving. That's a given.
I would do that right off the top. But before you increase your giving unless the Lord just as real clear to you that he want you to do more. If you have high interest credit card debt. I would really prioritize getting out from under that. I don't think that's a wise use of God's money to pay 15 1618% in the form of interest, but once that's paid off and we have some freedom and flexibility. I would be looking immediately. Not to increase lifestyle but to absolutely be moving your giving to higher levels. So I think it's about then I would start with your systematic giving. I would then focus on high interest consumer debt. But I'd be going right back to the giving very very quickly and becoming debt free.
Rob is that the be-all and end-all of our service to Christ. No, absolutely not. But clearly, when we're unencumbered. He gives us the freedom and flexibility to respond to the Holy Spirit.
I love it. The author Ron blue used to say put you in a position where you can live or die. Give her go and I think that's what we all should. I love it.
If you have a quick brief email question for Rob send it along. email@example.com.
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