Why Everyone Needs an Estate Plan

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Not licensed in Alaska, Hawaii, Georgia, Massachusetts, North Dakota, South Dakota, and Utah. What sort of legacy will you leave for your family? God tells us what he expects in Proverbs 20, verse 7. The righteous who walks in his integrity, blessed are his children after him.

Hi, I'm Rob West. The legacy you leave behind entails more than a will in the financial inheritance you leave your heirs. Today, David Wills from the National Christian Foundation joins us to talk about why we all need an estate plan. Then it's your calls at 800-525-7000.

800-525-7000. This is MoneyWise Live, where biblical wisdom meets today's financial decisions. Well, our guest today is David Wills, President Emeritus of the National Christian Foundation and a good friend. He's been walking alongside families on their giving journeys for many years, so he's the perfect guy to unpack why we all need an estate plan and what it means to leave a lasting legacy. David, great to have you with us today. Thanks, Rob.

It's great to be here. David, most people are aware of what's involved with a will, even though it's something they tend to put off as long as possible. But what exactly is an estate plan? Because it really is so much more than just drawing up a will. Well, some have said, Rob, that an estate plan is the process of taking one's wealth and seeing it turn into fees and commissions from advisors. But actually, an estate plan is really primarily a process to help us think through how we're going to pass on what it is that God has entrusted into us when we're gone. Yeah, yeah.

Well, that's exactly right. And that's why I'm so excited to dive into this topic. Now, many of our listeners may think they just don't need an estate plan or perhaps even think much about their legacy. But why is this really critical? Well, you know, legacy is one of the most common things that we talk about with families that we serve. It's top of mind to anyone that has been blessed with anything, frankly. But, you know, most people think about legacy with just the financial aspect in mind, but it's really far more than that. And as people get into the process of estate planning, they start to see that. And everybody wants to be remembered for having lived a generous life. And so legacy goes much deeper than just the financial aspect of things. Passing on things to others is not, at some point is not going to be an option for any of us. We are going to reach that day.

So it's a matter of kind of a framework that I use called who, what, and when. Who's going to benefit? What will they receive?

And when will they receive it? Yeah, really important. And as a believer, we realize this is the last stewardship decision we will make. And so we want to be well-planned and we certainly want to have intentionality. Now, you said it's much more than just the financial.

I want to talk about that. How should families and individuals, David, think about their legacy? If it's more than wealth, what are those other areas?

Yeah, and I'm going to back up just quickly and say that I think the process that comes with estate planning actually is just as important during life as it is when we pass away. Ecclesiastes 7, 11 through 12 says, Wisdom, like an inheritance, is a good thing and benefits those who see the sun. Wisdom is a shelter and money is a shelter. But the advantage of wisdom is this. Wisdom preserves the life of its possessor. So we want to pass on wisdom before we pass on wealth.

And the question that you're really asking me is the what question, the who, the what. What is it that we're passing on? And I tend to speak in terms of three different transferable capitals, if you will, things that we actually pass on. And I'll define them as a spiritual capital, character capital, and financial capital. It's usually the last one that we think about first, but we really ought to think about the other two first. Spiritual capital is just transferring the gospel to those that are going to come behind us, pure and simple.

Pure and simple. I often speak to grandparents. I don't know if there are any grandparents listening, but grandparents have a unique position to share their spiritual capital with their grandchildren, because their relationship is different than the parents, as we all know. And so I really encourage grandparents to make sure that all their grandkids know their story, their story of faith, because it will soak in to the grandkids.

I love it. Spiritual capital, character capital, and financial capital. We'll continue to walk through that and talk about how you can be intentional in leaving a legacy, as you think about not only the resources God has entrusted to you, but the life and the story that you want to pass down to generations. David Wills of the National Christian Foundation is our guest today.

Much more to come on why everyone needs an estate plan. Stay with us. We'll be right back. Welcome back to MoneyWise Live.

I'm Rob West. Today with me, David Wills and the National Christian Foundation. We're talking about leaving a legacy and estate plans. David, just before the break, you were talking about really thinking about our legacy in terms of transferable capital, spiritual capital, character capital, and financial capital. You made the point that so often we start with the financial, but really we need to begin with the spiritual capital.

Think about how we're passing down faith to the next generation. And you said story is really a big part of that. Talk about the importance of that and any additional insights on how folks can be intentional on passing down their family story.

Certainly Rob, most people, when they think about estate planning, they think transactional, they think mechanical, but really a really well done estate plan is really a story that you're telling to those that are coming behind you. And families, some do this much better than others, but it's the ability to wisely pass on material things kind of needs to be wrapped in a story. Recently, I was in a family meeting as an example, and this will kind of dovetail into the character capital side of things, where the patriarch for the first time explained to his, even his wife, but also his children and even some grandchildren, why he had the work ethic that he did.

They had never, ever heard the stories that he told of his childhood. And it became very emotional. And so that wrapped, that kind of cloaked all of the mechanical and transactional in a very personal light and was very meaningful. That's just an example.

Yeah, I love that. And it really can make a profound impact on the next generation as they then steward the resources that have been passed down and they understand how and why it was created and the work ethic behind that. Let's move on to character capital.

This perhaps is one of those capitals we'll transfer that we may not have thought of and yet is critical. Why is this so important? Yeah, I really encourage matriarchs, patriarchs, families to really think about what is the character of our family? When people look at our family, they see some character and what are the key ones that are really going to be important to our family?

Just for my own personal sake, my wife and I, we hope for three things that we repeatedly hope for with our kids. Number one, that they work diligently, live simply and give generously. So those are three character capital traits, being diligent, being frugal, being generous.

And so we've decided we want that to be an important part of our family story. So that's what character capital is all about. And then of course, financial capital is the third one. And it's third because I think it's in the third place of the capitals, but it's obviously very, very important. And money and our stuff is kind of like fire.

If you keep it in the fireplace, it works really well, but put it in your lap and it can really burn you. So it does take some real thought to process these things. And by the way, we pass on these capitals, both during life and after we pass away. So it's important to process this.

Well, that's exactly right. And we can model this. And when it comes to the next generation, that's critical. We can model diligent work. We can model a life of simplicity. We can also model generosity. And to the extent we're not just giving our financial resources as death, but we're doing it now, allows the kids to get involved in that process.

Right, David? Absolutely. That's a key part because you use the word process. That's a word close to story. So we are living a story. We're living a process. And I tell you, the first time that our children hear about these things, about our stuff, about our money, about our desires for them, it should not be after we're gone.

It should be while we're living. Yeah, that's exactly right. And David, I think this really does change the narrative for our listeners, because so often we think, well, a state plan, that's not something that applies to me. And yet, as you're describing the capital that we need to be intentional in transferring, this applies to everyone, doesn't it? Absolutely, it does.

And I want to make sure that in the process, I'm not diminishing the kind of the mechanical parts of an estate plan, because they're really, really important. But it's in context. Does that answer your question? It sure does, absolutely. Where have you seen this put into practice? Any other stories or examples come to mind? Well, there are lots of stories about people who do a good job in doing an estate plan and lots of stories about people that do a bad job of doing this.

And we often hear about them in the news. Just a couple of years ago, we heard about Aretha Franklin passing away, for example, and she had no estate plan, which is kind of hard to imagine. And if we were a part of her family, my guess is there is still chaos going on to this day, two plus years later, because she had no estate plan. And that's not a good... She wants to be remembered for being a generous person.

And it's not generous to not leave instructions like that. Another star who did the exact opposite is Paul Newman, who's one of my favorite... He's starred in my favorite movie. And he passed away over 10 years ago, and he did something that was kind of extraordinary. He left his company, Newman's Own, to a charity not to be sold, but to continue to generate capital to give away. So, I mean, his spouse is very old now, but he has lots of kids. And even to this day, they are still involved, very involved, in the legacy that he left behind the way he did it.

He's a great story. Yeah, well, that's exactly right. And I love that, you know, as we think about this, we want to think about what is our legacy? And what do we want to leave behind? And what are those values we want to pass down?

Because that's really going to frame this conversation, perhaps in an entirely different way that you and I than you ever considered. David, let's talk about the role of the National Christian Foundation and how NCF can come alongside families to help them think about their legacy and actually implement much of what you're describing. Talk about the role of NCF. Well, the National Christian Foundation, you know, we're primarily focused on the how of giving, of helping people create giving strategies to bring tools to bear that can help them be wise stewards. There's three questions that every giver asks. Why should I be generous?

How do I do that? Where should I give? So that how question that's in the middle, it so easily dovetails into the whole thing of family legacy and even estate planning.

It involves issues of finish lines and all of those things that come with leading a generous life and being a generous giver. David, where can folks go to explore more about crafting their legacy if what you're saying is resonating and they want to take a next step? Well, I would recommend that the first resource that they should consider is a like-minded financial advisor. Frankly, that's the best resource that you can have. And kingdom advisors can help with that side of things. And we really do need a guide through this process.

Very few people should do this alone. So that would be my first resource. And of course, the National Christian Foundation, we have a section on our website that's called the library.

It has resources and stories as well. People can watch stories of how people have processed this issue of legacy and their story, and also some information on some even mechanical ways to even think through, you know, lists of really good questions to process as they're going through this. Excellent. Well, David, I know you've helped our listeners today really think perhaps differently about their estate plan and really legacy, which is so key as we think about what we want to leave behind to the next generation. Thanks for stopping by today, my friend. Oh, it's been an honor. Great to be with you, Rob.

David Wills is president emeritus of the National Christian Foundation. You can learn more about NCF at ncfgiving.com slash money wise. Your calls are next 800-525-7000. We'll be right back. Welcome back to Money Wise Live.

So glad you're along with us today. We'll be taking your calls and questions in just a moment, applying the truth of God's word to your financial life today in whatever area you have in mind. We'd love to help you tackle it. Here's the number 800-525-7000.

That's 800-525-7000. Great to have my friend David Wills from the National Christian Foundation along with us today. If you'd like to contact the folks at NCF, you can do that at ncfgiving.com. You know, a well-planned, intentional strategy for your giving and your legacy.

Your estate plan can make all the difference. And at NCF, their heart is to help generous people like you create a giving strategy based on biblical principles so you can be more faithful, more generous, and give wisely. And they'd love to start that conversation with you today. Again, ncfgiving.com. And what you may not realize, for many of you who've been listening or who had previously listened to Larry Burkett many years ago, Larry was one of the founders of NCF, the National Christian Foundation, and they're doing incredible work in Jesus' name, and I know they'd love to serve you. All right, we're going to get to your calls next. Again, the number is 800-525-7000. That's 800-525-7000.

Let's start in Illinois. Karen, what's on your mind today? Oh, as I mentioned to the lady that answered the phone, I've just been dealing with it seems like we can't plan an estate or it can't be discussed because I feel like my husband thinks it's like, you know, thinking of someone dying or leaving, and he doesn't like to talk about it.

And I don't know how to talk to him about it. Or if I bring it up, oh, what do you think I'm going to die? You know, like, you know, stuff like that, even though he's very healthy, we're up in age, we're older, we're retired. And, you know, it's just, I don't know how to approach it.

Yes. Well, I can certainly understand that. And, you know, for many folks, this whole area of finance in general is one that people shy away from just because, you know, depending upon generations and how money was handled growing up, how your parents handled money, whether or not it was talked about. And oftentimes with the boomer generation and before that, this topic was off limits for many couples.

Certainly they didn't talk about money with the kids very often either. And so I think, you know, this is an area that can be really challenging. You know, I think a couple of things here. First of all, I would just, you know, in this whole area of money, really, as you begin to talk about God owning it all, and the fact that you all are stewards of God's resources, you know, that's the beginning point. And that realization and recognition can really be a game changer in my view, because it places you then in this responsibility of being found faithful in managing God's money and every stewardship decision. And keep in mind, Karen, the last stewardship decision you and your husband will make is where is this money going to go? What legacy are you leaving?

You know, there's only three places you can leave your money to the government, to heirs or whoever you might want to pass it on to and charity or ministry. And so being well planned in that decision is critical. And then along with that, are a whole host of other issues, including naming a healthcare surrogate, somebody who can make decisions on your or his behalf, if you're incapacitated, having a living will, having a durable power of attorney, you know, those types of things really are critical.

And yes, they can seem morbid and yet as stewards of God's resources, and somebody who just wants to be empowered to be able to make those decisions in advance, so that your wishes and his wishes can be carried out appropriately. You know, that really is the key. So I think in terms of how you approach this, number one, I pray ahead of time and ask the Lord to help him to be receptive to the conversation. I think timing is essential.

You certainly don't want to bring up sensitive subjects in the middle of a crisis. But I think beyond that, just beginning this conversation to say, you know what, as stewards of God's money, I want to be sure that we're well planned. And I want to be sure that our wishes are able to be carried out no matter what's going to happen, even though that may be decades down the road if the Lord tarries and we live a long time. So it's not about anybody's imminent death. It's just about being found faithful and responsible as a steward.

I think the other thing that can really help here, Karen, is a third party, whether that's a competent financial advisor, preferably somebody who understands God's wisdom and principles from his word in this area, or an estate planning attorney. But just having somebody there who can walk alongside you, prompting the various questions so you're not the one asking the questions, but this professional is, I think will really go a long way toward getting all of the issues on the table and doing it in a way that's productive. There's not any finger pointing and nobody's saying, you know, what are you thinking about? You know, why are you asking me this question? You know, it's a third party bringing these issues up, because at the end of the day, what we recognize is these are critical issues that I think we all need to be thinking about, even though we may not want to.

So I think I would approach it from a prayer standpoint, from a timing standpoint, and then from a perhaps a third party standpoint, in terms of somebody else coming to the table to help raise these issues so they can be addressed, and that you and he have peace of mind to know that no matter how long you live, and we don't know when our next breath is going to come, right? But you may live a long time, but you'll have the peace of mind to know that these issues have been addressed. Does that all make sense to you? Yes, it does.

At the top, I like the part of the third party. I think that would be a good idea that I haven't tried. Very good. Well, if you want to connect with a Certified Kingdom Advisor in your area, you could do that at our website, MoneyWiseLive.org. Just click, find a CKA. This will be a competent professional who also has been specially trained in biblically wise financial advice. You could also ask that professional for a referral to a godly estate planning attorney.

You could also call your local church and just say, can you give me a couple of names of church members who are estate planners? And start that way. But I think that could go a long way to perhaps helping you take a next step in this area. We appreciate your call today. May the Lord bless you.

We'd love to hear from you today with your questions. Is it estate planning? Perhaps it's debt, giving, investing, retirement, lifestyle, whatever's on your mind.

800-525-7000. More ahead on MoneyWise Live. At the intersection of faith and finance, this is MoneyWise Live, where we want to know God's part as it relates to managing his money. If we recognize God is the owner, therefore we're the manager or the steward of his resources, then money becomes a tool to accomplish his purposes.

And that changes everything. We hold it loosely and we give it generously. And I love what David Will said earlier in this broadcast, we should also live simply. And I think if we do those things, it aligns our hearts with God's because he's the ultimate giver. So when we're giving, we're calibrated, I believe, to the heart of the Father and everything then begins to fall in line. Now, does that mean you'll always have more than you need?

No, not necessarily. We're going to go through different seasons. Remember the Apostle Paul said, I've learned to be in times of need and times of plenty. I've learned what it means to be content.

So that's a learned behavior. And in the Christian life, we're on a journey. And at some points we're going to be down in the valley. And we're reminded every step of the way, especially at those times that God is our provider and we're to trust him. And he's faithful and his promises are true regardless of our circumstances.

And here's the reality, friends. We have an abundance without the first dollar. He's given us everything. He said he'll never leave us or forsake us. He's given us his son to pay the penalty for our sins so we could be reconciled to him by placing our trust in Jesus as our salvation and as our Savior.

You know, that alone is enough. But then beyond that, we're entrusted with this responsibility to be stewards, to be found faithful of God's resources. And that's what we want to do on this program each and every day. Take the Council of Scripture, the 2350 verses—yes, you heard me right—and apply them to what's going on in your financial life as you save and give and provide for your family and, yeah, pay off that debt you have and think about the future and get the kids through college.

We want to apply God's wisdom to all of that. Here's the number. We've got some lines open. 800-525-7000. It's 800-525-7000. Let's go back to the phone. Chicago, Illinois. Arlene, what's on your mind today?

Hi. I have one child and she's 35 years old. We have a pretty good relationship and I want to know, do I need—she knows everything that I have is hers and going towards her—would I still need to make an estate plan? Yeah, you know, I think it is important to probably meet with a godly estate planning attorney who will ask you a number of questions, perhaps some you haven't thought of. I mean, yes, your situation is simple, so probably a simple will will do, but you'd certainly need to have one in place and update it periodically as things change in your financial life.

They'll want to ask you whether you want to leave perhaps a part of what you have to your church or a charity in addition to your adult daughter. You know, whether or not you need a trust, probably not, but, you know, there's some things to consider there, what you can do to streamline the probate process. So again, even though your situation is quite simple, I think it is always beneficial to sit with somebody who understands the Council of Scripture, obviously is competent in this area of estate planning, and can make sure that everything is in order to reflect your wishes as you make this last stewardship decision on how you'll handle God's resources entrusted to you at your death. At the same time, Arlene, you could deal with the other issues that would also be under the purview of an estate planning attorney.

I'd mentioned them earlier. That would be things like a healthcare surrogate, someone to step in and make healthcare decisions if you're incapacitated, a living will where you're able to define your wishes at end of life, a durable power of attorney if somebody needs to make non-medical decisions on your behalf if you're incapacitated. Things like that that just make sure you're well planned as you think about handling God's resources in that season. So I think you could still benefit from visiting with an estate planning attorney who could walk you through those, ask you some simple questions, and then make sure everything is up to date. If you'd like to find a Godly estate planning attorney in your area, you can always connect with a certified Kingdom advisor at our website and ask for a referral.

Just go to moneywiselive.org moneywiselive.org and then click find a CKA and we appreciate your call. Let's go to Post Falls, Idaho. Janet, you're next on the program. Go ahead.

Hi. What I have done is I have designated my daughter as inheriting everything, but if she happened to be deceased, I also set it up. She'll selected three organizations and they said that each organization would get one third were she not to be there. Yes. Yes. And so this is done through a beneficiary's election on various accounts like bank accounts or retirement plans or so forth. Yeah.

Yeah. So the only thing you would need to do there, Janet, in addition to perhaps some of the other things that I mentioned, other documents and legal instruments you'd want perhaps to have in place, is to make sure that you have a will up to date because those beneficiary designations are good for those particular accounts where you've made those designations. But the will is going to catch everything else. And so you want to make sure you have a will that's up to date, that's in force, that can be there to govern through the probate process anything that falls outside of one of those accounts where you've elected the beneficiary. Sounds like you have certainly a great start.

You've thought through this as to how you want it handled, but I just make sure you have the other pieces in place as well that go along with it. We appreciate your call today. Pat, you're in Phoenix, Arizona. How can we help you today?

Well, thank you and bless you for your work. I'm 87 years old and I haven't filed taxes for the past 10 years. When my husband passed, our tax men said I didn't make enough on Social Security to have to file. And now my children are telling me maybe I'm supposed to be filing. So I make $2,800 a month in my Social Security. I get $5,800 a year from an annuity and I make about $6,000 to $8,000 in stock accounts.

Yeah. Well, I will just say at the outset, Pat, not everyone is required to file an income tax return each year. Generally, if your total income for the year doesn't exceed certain thresholds, then you don't need to file a federal tax return. The amount of income you can earn before being required to file depends on your type of income, your age, and your filing status. What I'm hearing though, based on what you just described, is that you would owe some tax.

Generally, if you're single and you earn less than the standard deduction, you don't need to file, but that's only $12,400. So what you're describing to me in terms of your Social Security benefits, plus these other income sources that you have, sound like to me that it's at least worth looking into. So what I do, Pat, is reach out to a competent CPA or accountant in your area. You could look for one who's a Certified Kingdom Advisor on our website.

You could ask a friend or family member, contact your church for a referral. But just let this professional look over your situation, understand what income sources you have. And if in fact you should have been filing previously, that can all be cleaned up and cleared up. And you'll want to do that sooner rather than later, because if there is an amount that was owed from prior years, you'll want to make sure that you get a payment plan set up or you at least get that caught up, because there's interest and penalties that would have been accruing. I'm not saying you automatically should have filed or there's tax due, but you at least want to know that.

And from what I'm hearing, there's reason to at least consider that. So I'd reach out to a CPA or an accountant in your area. Let's get a visit there, show them all the information, and they'll tell you exactly what you need to know. We appreciate you listening and calling today. This is MoneyWise Live, where we apply God's word to your financial advice. Hey, have you checked out the MoneyWise app? If not, it's the best digital envelope system out there, plus our MoneyWise Live community and our Discover tab with the best content in Christian finance.

You'll find it on your app store at the Apple App Store or Google Play. We'll be right back. Stay with us. Welcome back to MoneyWise Live.

I'm Rob West. So glad to have you along with us today. Well, the end of April is upon us, which means it's a great time for me to remind you that MoneyWise Media is listener supported, and it's your support that allows us to share God's financial wisdom every day. And as we approach month-end, we could certainly use your assistance to continue to do what we do as we push toward meeting our budget for April. So if you'd perfectly consider a gift, we'd certainly be grateful. Once you do, just head over to MoneyWiseLive.org, click the donate button. You can give one time. Perhaps you want to become a monthly partner, whatever that looks like. If this ministry has been a blessing to you, either through the app or on the web, our MoneyWise coaches or this broadcast, we'd be grateful for your financial partnership.

Again, MoneyWiseLive.org, just click the donate button. We have time for a few more calls, and we've got some lines open. Here's the number, 800-525-7000. I'm also going to stay after for just a few minutes today and can take a few extra calls. So don't hesitate to call right now, 800-525-7000. Let's go to Kent, Ohio.

Shirley, how can we assist you today? Hi, I'm calling about a funeral trust. Here in Ohio, we are allowed to put money into a funeral trust where the money goes directly to the funeral home at our demise. And I'm wondering if you think this is a good idea. Yeah, you know, it's essentially a pooled income fund that's set up by a funeral home where a person transfers property to cover future funeral and burial costs and allows you to pay those in advance. And it can certainly spare survivors a lot of difficult decisions in a very difficult season.

So I think from that standpoint, you know, that's a good thing. I think, you know, you need to understand what expenses would be covered. So, you know, it can include a whole host of expenses. And you want to understand that it allows one of the benefits is it allows for any relative or other person or even the funeral home, not just immediate family members to make funeral arrangements, if necessary.

And it can be a gift to the family. You know, the only downsides I would say is if it's, you know, purchased from a privately owned funeral home and that funeral home goes into bankruptcy or let's say some funds were mismanaged. I'm not saying they necessarily would, but would be. But that's certainly possible. Then, you know, money spent on prepaid funeral needs can be lost at that point.

And so, you know, that's one of the downsides. And they generally don't transfer from state to state. So if you purchase a funeral trust in one state but live in another, when you die, funds may not transfer between funeral homes. There's also some Medicaid and tax implications there that you need to understand.

So these are, you know, not frequently used in terms of a tool for planning. So I would just make sure you understand exactly what the you've purchased or you're considering purchasing, perhaps talk to your financial advisor about it before you make the decision. A great resource and website, Shirley, to get more information and do a bit more due diligence is Funerals.org. That's the Consumer Funeral Alliance. And they'll give you a number of alternatives for prepaying your funeral and some that you find there you may actually think are a bit more attractive.

So I would just do a bit more due diligence before you make the final decision. Again, Funerals.org can be a great resource for you. All right, let's head to Chicago, Illinois. Oscar, how can we assist you today, sir?

Yes, hi. The reason why I'm calling is that we own a small mom-and-pop shop kitchen. And due to COVID, we have suffered a lot of lack of business. And the reason why I'm calling also is because the company, which is a corporation, does not have debt because when I open the business, I use all my credit. But that is affecting me right now because of my personal income.

I don't have a personal income. So what I did, like three or four months after the pandemic started, I called the creditors and asked them to settle. And they told me that it has to be a process where you have to stop making the payments, which will affect your credit. And so it's a process.

So do you advise this practice? I don't know if there's a way where I could transfer all that because the company, it's under my name and at DBA. So I'd like to know what's the possibility of doing a settlement with all the creditors, if there's a way to transfer to probably a corporation's line of credit, how to open one. Yes. Well, so the debt that you have currently, Oscar, is personal in your name, correct?

It's not in the business name? Okay. Correct. Yeah.

So you're going to have to handle that personally. I mean, it doesn't mean you can't build business credit. It's going to take some time to build that. And just as with personal credit, strong business credit is obviously helpful in getting lower insurance premiums or interest rates. And it'll also help you get approved for a lease or a business loan or business line of credit. And so you'll want to start by checking your business credit, establish your credit, which again, can take some time, but by incorporating that would certainly help to ensure that your personal and business identities are separate. You want to get a federal employer ID number, open a business bank account if you don't have one, a dedicated business phone line. You could register with Dun & Bradstreet and get a DUNS number, which will help. And then even applying for a business credit card, all of these things.

And as of course, you work with your vendors that report payments and paying them on time or paying them early over time is going to establish your business credit. In the meantime, obviously, you need to take care of this. And I don't ever advise you stopping payments for the purposes of settlement, even though yes, you might be able to settle for much less, maybe 10 or 20, 30 cents on the dollar. It's going to destroy your credit in the process. And so I'd rather you work with these lenders to get this paid through the normal methods, you know, even if you have to go, you know, into a credit counseling program or something like that. So I would just continue to move directly toward them and try to negotiate either a payment plan that works for you or a settlement.

Let me ask you, have you looked into the, you know, payment protection program or payroll protection program, the PPP? I did. I only have $7,500 because it's a, it's a, it's a, it's a solid product. I see. Okay.

Yeah, very good. So you've taken full advantage of that. Well, I would, I would look at, is this held on credit cards or what type of debt is it? Yes, it credit, it is credit cards and this is a corporation.

The business is a corporation. Okay, great. But the credit card is in your name personally? Correct. Correct.

Okay. So I would look into credit counseling. Our friends at ChristianCreditCounselors.org could be a great resource for you, Oscar, as you look to get this paid back. You'll pay it back 80% faster. They'll get the interest rates down. That would at least keep you current so you don't go into default and trash your credit.

ChristianCreditCounselors.org and then I'd work on those steps that I mentioned to begin to build your business credit at the same time. We appreciate your call today, sir. Let's head to Bob in Manteno, Illinois. Bob, how can we assist you?

Good afternoon. Thanks for taking my call. I was hoping to get your opinion on LERPs, long-term investment retirement policy. I've got a really good friend ChristianGuide. It's an insurance salesman I've used for years. He talked me into this because of the whole zero tax bucket theology at the other end when it comes time to retire. But I also believe very much in Mr. Ramsey and I follow his, pretty much his saving program all the way to the point where you can be a great giver program to the end. And he says, run, run, run when it comes to LERPs. Run, run, run. That gets my attention.

Over the last few years or so, my wife and I have actually invested 25 or $30,000 into this LERP. I understand the whole premise on the other end, as far as not being tacked on my social security, if that even exists at that point. But I just want your opinion. I mean, those are two, these are two really smart guys, but they both say absolutely the opposite things. What is your opinion?

And should I just liquidate this LERP and buy myself a nice 15 year, 20 year term policy like Ramsey says, and just change my mind about the LERP? What is your opinion? Yeah, yeah. Well, I'm kind of somewhere in the middle. I love Dave.

He's actually a good personal friend. But the idea here behind the LERP is, which stands for a life insurance retirement plan, is that, you know, for folks who have too much income to contribute to a Roth, or they want to be able to put more away, there's no contribution limits. So if you buy it with a large enough death benefit, and this is going to get a little technical, and you make it, you know, not a modified endowment contract, they can be very effective for generating tax-free income. The reason I'm, you know, prefer, this is not my first choice by any means, is that they, you know, there are a lot of fees and commissions built into these things. And they're very complicated. And, you know, most people just don't understand them. And again, you're mixing insurance and investing. And Dave doesn't like that.

I'm not a big fan of that either. So, you know, you typically will do better by separating them. Now, depending upon your situation, they can be used very effectively. And I'm sure your buddy who's the insurance salesman can show you all kinds of illustrations as to why that is.

So I would just make sure that you understand exactly what you're getting into, what has to be done to maintain this contract in a proper way so that it will result in the intended outcome, which is that tax-free income, and that you know why you're doing it versus a more vanilla-flavored approach, which would be my typical advice and what you're saying Dave is recommending, which would be just get term insurance to cover your needs, get as much as you need to fully offset that risk for your loved ones, and then save, save, save, and things that you can understand and explain to your brother-in-law or your neighbor and do it for a long period of time. And you typically will come out well. But I wouldn't say no, never.

I probably wouldn't say run, run, run. In the right situation, it can be effective. So hopefully that's helpful to you, Bob. Hey, thanks for being along with us today. MoneyWise Live is a partnership between Moody Radio and MoneyWise Media. Let me say thank you to my team today, Amy Rios, Deb Solomon, Jim Henry, and Eric Tidwell. Come back and join us tomorrow as we apply God's truth to your financial life. God bless you.