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When to File an Insurance Claim

MoneyWise / Rob West and Steve Moore
The Truth Network Radio
October 8, 2021 1:04 pm

When to File an Insurance Claim

MoneyWise / Rob West and Steve Moore

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October 8, 2021 1:04 pm

Insurance is a great way to protect yourself from unexpected losses.  But knowing when to file a claim and when not to can protect you from unintended consequences. On today's MoneyWise Live, host Rob West will share a secret strategy for keeping the cost of your various insurance premiums low. Then he’ll answer some caller questions on various financial topics. 

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This is Damon Baxter and I serve as business development director for MIDI radio. The only reason were able to spread the gospel of Jesus Christ on the radio is because of financial support from listeners like you. We also have businesses support us to like United States mortgage faith in family is at their core, it's why they choose to be such a close partner with our station is why they specifically advertise on Christian radio stations across the country. It's wife, father and son, John and Ryan still lead the company to this day. Check out United faith mortgage and their direct lender thanks to you and to United faith mortgage for supporting beauty radio United faith mortgage is a DBA of United mortgage Corp. 25 Belleville Park Rd., Melville, NY license mortgage backer for licensing information, go to an MLS consumer corporate MLS number 1330. Equal housing lender not licensed in Alaska, Hawaii, Georgia, Massachusetts, North Dakota, South Dakota and Utah. This is Damon Baxter and I serve as business development director for MIDI radio.

The only reason were able to spread the gospel of Jesus Christ on the radio is because of financial support from listeners like you. We also have businesses support us to like United States mortgage faith in family is at their core, it's why they choose to be such a close partner with our station is why they specifically advertise on Christian radio stations across the country. It's wife, father and son, John and Ryan still lead the company to this day. Check out United faith mortgage and their direct lender thanks to you and to United faith mortgage for supporting beauty radio United faith mortgage is a DBA of United mortgage Corp. 25 Belleville Park Rd., Melville, NY license mortgage backer for licensing information, go to an MLS consumer corporate MLS number 1330. Equal housing lender not licensed in Alaska, Hawaii, Georgia, Massachusetts, North Dakota, South Dakota and Utah is version of moneywise. Life is pretty withholding so our phone lines are not insurance is a great way to protect yourself from unexpected losses. But knowing when to file a claim and when not to. Well that can protect you from unintended consequences by Rob West, it's prudent to have life, health, auto and home insurance. It's also wise to keep the cost of your dreams will tell you the secret for doing that today we have some great goals lined up taking your life calls today because we're free recorded.

This is moneywise live God's financial principles guide at least insurance is in specific. In the Bible, but God's word does tell us that we should be prudent and wise. Proverbs 812 says I wisdom dwell with prudence and I find knowledge and discretion in Ecclesiastes 712 tells us for the protection of wisdom is like the protection of money and the advantage of knowledge is that wisdom preserves the life of him who has it that having insurance is wise, but knowing when to file a claim and went not to requires wisdom as well.

Sometimes the payout just isn't worth the cost down the road to you personally and to consumers as a whole. Let's look at roof damage from hailstorms. As an example, have you noticed roofing companies showing up in your neighborhood after a storm.

Now, for the most part roofers are honest people, but to a few bad apples can spoil the reputation of the bunch.

Sometimes those bad apples will try to convince you that a hailstorm has damaged your roof when it has it that they'll tell you that your insurance company will pay for a brand-new roof and it won't cost you anything, except maybe your deductible. But the truth is an insurance claim will always cost somebody something, and it won't be the insurance company. Those costs are always passed on to the consumer raising premium rates for everyone that you may also find that your premiums go up the next time you have to renew just because you made a claim. So when should you file a claim. Well, there's a good rule of thumb for home and auto insurance. Only file a claim if the damage comes to $500 or more on top of your deductible. So if you have $1000 deductible, file a claim only if the repair bill comes to more than 1500. Try to think of home and auto more like catastrophic health insurance but use it only for the big things not to nickel and dime the insurance company whenever you didn't defend or lose a shingle in a windstorm you're better off paying for those things out of pocket filing multiple claims with an insurance company is a sure way to get your premiums raised or worse. You could find that when your policies up the company declined your renewal and if you think that you will just go to another insurance company that you're probably in for an unpleasant surprise.

They talk to each other in a manner speaking, no pun intended that you probably never heard of it but the insurance company has a secret weapon that it uses to weed out frequent filers. It's a shared database called the comprehensive loss underwriting exchange or clue. If ever there was an appropriate acronym. So here's how it works. When you file a claim it's noted on an industry ledger of sorts, called your clue report on how many times and how frequently you file claims to many claims in your clue report and insurers may refuse to give you coverage and that.

Could last up to three years. And even if another company does decide to ensure you, you'll probably find yourself paying higher premiums so you don't want to file a claim unless you're facing significant out-of-pocket losses. But there's a way you can avoid even the temptation of filing the next time your policies up for renewal. Raise your deductible to the highest amount the insurance company allows.

Let's say that amount is $2000. Next you want to make sure you have that 2000 in your emergency fund, plus another 500 or thousand with that accomplished.

You're now insuring yourself against minor losses. This will not only avoid the temptation to file the high deductible will also help lower your premiums which will save you a lot of money over time.

So, to recap, file an insurance claim.

Only when you losses at least $500 more than your deductible when it's time to renew up your deductible to the highest amount the insurance company allows and finally keep that amount your deductible plus at least $500 in your emergency savings do all that you'll save yourself a lot of money and grief down the road when we say make sure your self-insured.

Therefore, you have your deductible $2000, plus at least 500 more. That's on top of your 3 to 6 months expenses.

We need that there is your reserve for any unexpected expense but if you do this you have the margin in the foundation under you to be a great steward of God's resources.

This is a reminder that were not alive today, but we do have lots of great information coming up and the rest of the program. So please stick around.

It's great to have you with us on moneywise live today but unfortunately today were not live for free recorded and therefore won't be taking your call. However, we've lined up some calls in advance that we think you'll find helpful. So stay tuned and enjoy the rest of the program unit we began today by talking about when to file an insurance claim, and often we talk about insurance. The question comes up is insurance really biblical.

Shouldn't we trust the Lord and absolutely we should. I think the idea behind having insurance is to be sure that we recognize we want to do our part. Yes, our trust should be in the Lord. But what is our role in terms of providing an offsetting risk and I think ill as we think about our stewardship responsibility to care for our families to manage the resources that God has entrusted to us and to look out for our neighbor enough we were in an accident and we caused me of something medically or damaged piece of property or an automobile. We want the ability to make that person whole and I believe that's where insurance really comes into play.

It's not a lack of trust. I believe it's just a stewardship responsibility. So when it comes to having the proper amount of insurance, whether it's for property and casualty, or even to provide for families through life insurance. It's important that we have sufficient coverage, it has to fit well within the budget but we need to make sure were properly insured. You know so often when it comes to this area of life insurance. In particular, the people that I've counseled over the years are underinsured. They simply just don't have enough in the way of resources to adequately provide for their families if they were to be called home if the Lord were to take them home. They were to pass away their income goes away, especially during those working years. They wouldn't necessarily have the ability to continue to provide for their families after death. Well, that's where I believe having a proper amount of term insurance which is pure insurance, which means it's the least expensive approach that you can have allows you to have that proper amount of coverage so I would encourage you to really take a look at that perhaps get an independent agent that can come alongside you to make sure you have the proper coverage be up for property and casualty or life insurance or in the later season of life. Even considering long-term care insurance if that fits into the budget. So think about that. Pray about it and then find somebody who can walk alongside you to give competent counsel were going to begin today in Port St. Lucie, Florida ~thank you for calling today. How can I help you talk a lot about like four years ago and we paid about $26,000 for rent and now we have a potential buyer friend.

We would probably be selling for 80,002 we have to pay capital gains tax on that and like much, but that yes will because it's not your primary residence, so you have an exclusion if it's a primary residence in the definition of that is you've lived in a two out of the last five years not going to be the case with a lot that you bought as an investment.

So with a property like this that was bought for an investment. It's gone up in value. You're going to be looking to pay capital gains on the gain which is simply the amount of profit you have the proceeds from the sale minus the original purchase price, and then you'll subtract any transaction costs or any improvements that you made to the lot itself, and then the difference is really your game now for most folks other than a pale long-term capital gain of 15%. If you make under around 450,000 a year in income that has nothing to do with the amount of gain. That's purely your income so that typically are to be looking at 15% you want to plan for that Hilda because you don't want to get caught off guard with that and not pay that in on a timely basis and then you have a tax bill that you're not ready to pay good news is you're going to keep the lion share of that that you can use to reinvest elsewhere whether that's another piece of property are paying down debt or maybe one invested for the long-term and the stock market. Does that help them or time, and you are yeah I typically would think, as you realize that again it's a good idea could be that the amount is just not enough to trigger any kind of the additional liability if you don't pay it sooner then your tax filing date so you could check with your tax preparer on that, but it's not a bad idea.

Once you know what that tax liability is just to go ahead and make that estimated payment in advance. That way the monies are you there based on a calculation that your tax preparer would provide and then you could recognize that the payment that's been made when you file your tax return so there's not anything additional owed and if you overpaid you get something back. At that point, but always a good idea to going get that in and not wait and that way you wouldn't have any, interest accrued as a make sense all right will I not a lot we would like to build a home that we do have a home here that will probably have it finished paid off in the next year I'm sending with any extra money every month and also I think 15 year mortgage and going on the eighth year will probably have it done by next year and my husband and I am 65, 1967 and also to build a house like for our like my son and I like is from that one lot that the light will be like to say that free time will you know that the house that we have now that I was thinking of giving back to him and using the trophy as a down payment just to make sure I follow suit. Another piece of property you're looking to gift the property to him prior to the sale. Is that right will be the better we have to build homes so probably beyond our name for the mortgage. No yeah so what is the question you're trying to answer related to this property. Thinking right I'm out in my 60s and my husband to you, like I wanted to do this, should I do this I like him. Once we finish paying our home here.

You know it the next like $2000 that happen every month every month towards the market that will be paying anymore. The thousand dollars to help out pay that mortgage yes well I like the idea. What you pay off your mortgage. If you have surplus income you have some extra cash flows long as you're giving at the level you feel good about in all of your debt is paid off, you're on track and saving for the future. Continuing to reduce debt on this other property makes a lot of sense to me if you can be debt free and unencumbered. You can get a lot of peace of mind. As a result of that, and then as you get into that retirement season Hilda, it'll keep your lifestyle and expenses as low as possible, so I appreciate your call today. Thank you for the questions you hadn't, will look forward to talking to you again real soon.

Before we head into our next break. Let me remind you to check out our new moneywise website.

There are a number of resources there for you to take advantage of beginning with all of our content that's right were aggregating content from the leading voices and Christian money management. There are podcast videos and articles that are practical biblical I know the be an encouragement to you can also jump into our moneywise community perhaps post a question and get an answer from a coach and maybe even find some encouragement from others stewards on their journey that all of this is accessible with your free moneywise account which you can create when you get there. Just click sign up again.

The website is moneywise Our team is taking some time off today so were prerecorded. Don't call him after we come back from this break we recalls lined up for joint statement is back to moneywise live on West this is where God's word intersects with your financial life with us today. Their team is taking some time off to programs pre-recorded so don't: today we too were live in the studio but we do have some great calls all lined up ready for you today.

I'm sure you'll enjoy them. Let's take an email question. We haven't done one in a few days. If you have a question.

By the way, and you'd rather send it in.

You can send that to and we try to read as many of them on the air as we can. This comes from Lee and Heather in Albuquerque New Mexico and Lee and Heather want to know should we pay down credit card debt or build our emergency savings first and we and Heather.

This is a great question. I'm to say do both.

But here's my approach you if you don't have anything in your emergency savings and you got some credit card debt. Let's start with the emergency savings.

Let's pay at least the minimum on those credit cards keep them paid in full every month, or at least the minimum so you're on time payer, let's establish that with any margin that you have and by the way to get that margin or surplus up as high as you can.

Let's be sure using a spending plan dial into that spending plan while you have credit card debt. We need to be looking for every opportunity to cut because everything you eliminate from that budget and by the way, you need to be tracking it. That's more money you can apply to debt reduction, but let's pay the minimums on the credit cards. Let's take every bit of surplus you have and let's sock that away in an online savings account until you get to $1500 asking to be my target for you.

Once you reach $1500 in emergency savings, then let's pair that back to the credit cards and use the snowball method to pay the minimums. All of them but let's attack with every available dollar over and above your expenses that smallest balance until it's paid off, and then move right down the line. Once those credit cards are paid off. The were to go back to the emergency fund and try to get that to 3 to 6 months expenses. Why 1500. Well, I want you to have something so we can break the cycle of using the credit cards to fund your lifestyle. The unexpected will come if we don't have anything you can rely on those credit cards that $1500 is going to give you the buffer until we can get the credit card debt paid off and get that emergency fund to its proper level. I hope that helps. Again, if you want to send a question to us. We'd love to hear from you back to the phones. Tampa, Florida Robert, thank you for your patience, or how can I help you last week. If you are married and your wife remarries she had not remarried. I stated she could collect security on the company. Yes, that's true, but that has no bearing on your Social Security Robert so that does not decrease your benefit whatsoever, any payments by Social Security to a family member including an ex-spouse doesn't affect your retirement benefit, but they are eligible to collect spousal benefits as long as the marriage lasted 10 years. They haven't remarried there at least 62 and you are entitled to collect Social Security than they can collect as a spouse that's not going to affect your benefit whatsoever. Does that make sense for you. Thank you very much.

Yes sir, thank you for calling today to Pennsylvania. Scott, thanks for your call today.

How can I help user I decided on where to buy out.

I want to live in the country, but it got enough money I couldn't afford a 15 year loan in the country.

I could tell just wondering if it bit better to postpone the link to the country and it does cost money to telehealth and relocate or it would be good idea to check. Try to be conservative in my purchase but you do that for the 30 year loan now. Yes. So what is your age. Scott, 47, 47 are so you're looking to move from from in town to more out into a rural area, you look into accumulate a little bit more land.

Is that why it's more expensive yes actually I'm moving from my yes I would like that little land right okay yeah very good and the rest of your financial life. Do you have an emergency fund. Do you have any credit card, then have you been saving for the longer term beyond the down payment for this property little bit of an emergency fund because we just sold our house I wanted. I like to rent out that I have pretty clear other than mortgage okay very good and what would you have left over after the 10,000 is carved out for emergencies that you could use for this additional purchase around 75 or 80 okay and where are you living now that you sold the house of you closed on the sale tomorrow okay and what is your plan at that point or you will get a rent there in your current location.

We have a short-term solution that can last pretty much as long as you want it.

Not ideal, but it'll work until we can find something that works for okay so let's say you to make the move. How much would you be expecting to spend for the property you're looking for Pennsylvania, probably around 300 okay so you put 80,000 down on that you have about a $220,000 mortgage.

I think the question is the awareness that payment fit into your overall budget in terms of the income that you're relying on. As a rule of thumb, I'd like to see that payment Scott be no more than 25% of your take-home pay, including principal, interest, taxes and insurance which would leave 75% for the rest of your lifestyle and expenses, beginning with your giving and then all of your fixed and discretionary expenses. It could be that you're going to need to go with a 30 year mortgage in order to get that down low enough, which I would certainly be comfortable with.

Given that you're putting down well over 20% on this property. So I think you just need to look at party committed to the sale.

It's happening tomorrow.

You have the proceeds you know you want to make this move. So where you going from here and I think the idea that you would gladly make that move lines as opposed to buying something else locally and then making a move down the road is going to save you money, but you don't want to get overextended. That's where using that 25% rule of thumb and then actually flushing out your budget to make sure it works I think is the right way to go if that needs to be a 25 or 30 year mortgage and I would do that. It sounds like a good plan and I think you're right on track. Let us know pause for a brief break, much more common moneywise live just around the corner. Stay with us right thanks for tuning in the moneywise live on plaster hose with us today. Our team is taking some time off today so I know it's here so don't call it, but we lined up some questions in advance that I know joy before you get to those questions. They let me just remind you that moneywise media is in fact listener supported. That's right.

What we do on the air each day is only because of your generous support. Would you consider a gift which are we'd certainly be grateful to set over to our website moneywise and click the donate button and would be grateful to have you checked out the new moneywise app.

If not, it's available and ready for download. You can use our digital envelope system. You can ask questions of the moneywise community and get answers from our moneywise coaches and others as well as our discomfort that we can get the best content in Christian finance from all the leading voices. It's all in one place and you'll find it in the moneywise after search for moneywise biblical finance. When you visit your app store today hurried back to the phones we have 501(c)(3) lines open 800-525-7000 at the Naples Florida Edison.

Thank you for your call today sir, how can I help you think you're all we a question about art. We want to be able to set them up for the future and we went from zero kids to four in a year and 1/2 well and so you know.

And yes, from going from the elders being seven years old junk being you would delete two weeks so you know we are trying to see will all be the best way that we can see you are a blessed man, Edison Alex thinks thinking. I thought you we went to see we had four in four years. We did that because our our boys the first two were 18 months apart, and then a couple years later we had twins and so we had four and four years for any year and 1/2 and I realize that involves adopting as well as natural birth but that's exciting. You're going to have a busy household.

So when you say set up accounts for your kids.

Tell me what you're thinking. Are you wanting to begin to fund college accounts did you have something else in mind what I'm thinking but I mean I don't know what the best option will be coming out on those like you staying or setting thumb cannot, for them that you whichever you whatever you think that it will become. I get the most beneficial to them and you know will also be able to be something that we can actually do yeah make sense. Well, I think the key here. Edison is your expenses are to go up as you have these four precious children in your home. So you're really focusing on that first to make sure you're doing what you need to do to take care of your family before you even set aside something for them for the longer term. You know, a fund you can give them to make a first car purchase or get into an apartment or pay for college. I want to be sure you guys are doing the giving.

You want to do and that you don't have any consumer dad and that you have an emergency fund that's funded at 3 to 6 months expenses and that you're taking advantage of the power of compounding to save for retirement so putting in. You know, upwards of 10 to 15% of your pay and some sort of tax-deferred retirement plan, preferably a company-sponsored plan was to matching those are kind of the key building blocks if you will of your financial life. It's going to give you a solid foundation to get a navigate and journey. Whatever the Lord has for you in the days ahead that once those pieces are in place. Again, you're getting emergency fund living on a euro less than you earn in your spending plan in your saving for retirement, then I think you know the next step is to start think about thinking about some medium-term savings goals which could be in a down payment or your money toward a bigger home because you obviously have more people in your home now and so if that's something you're looking to do. You might want to be saving to put some money towards that additional or larger home. Another goal would be to begin to systematically fund and account for the kids. I like the idea of you about putting money aside in a college fund and my preferred choice would be a 529 college savings plan there in Florida. You have both the prepaid plan as well as the 529 education savings. I like the 529 education savings plan better not you can make systematic contributions of whatever amount you want to you want to build it into the budget and again make sure you taking care of those other things. First, but then you'd have four accounts.

Let's say one in each of the kids names that would money would grow on a tax-deferred basis in all the games you would have when you're ready to use it for college would be tax-free. As long as it's used for qualified educational expenses. If those children anyone of them got scholarships or grants you could pull the money out on a pro rata basis with no tax impact.

And if one didn't need it, you could transfer any portion of one account to another child and it could also be used up to a certain limitation 10,000 4K to 12 education as well so I think that would be perhaps the best approach and if you started it early. You could really have a meaningful amount when they're ready to go off to college. So again it's a 529 education savings plan and I think that would be what you're looking for.

Does that help. Thank you think that we do we put out to save it and I do have 401(k) and a pension, how to job, so I you like that I get them from bolting I do, I do match I don't not the Mac. Not that I can. They can match.

Not much you that great so we do, how old are set up so specific, company that we should go with you that the state all how do we get it yeah I would look at that would be to go to a website saving for now because you're in the state of Florida and there's no state income tax you're not gonna receive any kind of benefit for using the Florida plan when it comes the education saving so you can pretty much choose from any states plan and the reason you may want to go outside of Florida is big rate. These plans every year.

They all use different fund families you know inside the plans, which means different investments and some have better historical performance than others. So I go to saving for and run some calculators based on the number of kids you have the ages that they are what your savings goals are and it'll actually recommend the best 529 plan for you and then now you can perhaps take their recommendation and an open the account online so hopefully that helps. God bless you Edison you and your wife in these exciting days. As you bring four kids in your home.

A year and 1/2, that's phenomenal. We appreciate your call. Let's see, to Illinois and that we welcome Miriam Garrett program and learned a lot. Thank you. So I do property rental. I don't handling mortgage anymore by the rental property. My question is that I've been trying to but my own money.

I just don't know have five purposes cannot or just you know is that dangerous right that's pretty low down you like to the 3% on each property well you know you said we could talk to your CPA about the Miriam to determine exactly what benefit you are receiving by being able to deduct certain expenses because this is a business enterprise.

I think this is a permissible use of debt because these are for appreciating properties that are income generating think the only aside to that would be if you have a conviction about being out of debt. You just want to be completely unencumbered. I actually think that outweighs the tax benefit you receive just a have these properties, free and clear. I have no problem continuing with a low interest mortgage on these if you're realizing benefits financially through being able to check with your CPA, then pray about it make a decision.

Thanks for your call will be right back with much more money was thanks returning in the moneywise live on Rob last year host delighted to have you with us today. Our team is taking some time off today were not here so don't call in, but we got some great questions lined up in advance and will get to them. Just a moment but first we got the number of emails that have come in recently and I'd like to tackle a couple of them today beginning with this first when it comes from Karen. Karen writes to us, we are refinancing our mortgage.

What tips do you have to limit or reduce closing costs and Karen I'm glad you're thinking about this because when we refinanced the cost of the refinance itself. The transaction eats into the potential savings were looking for, which is the whole point of the refinance through generally reduction in the interest rate and a minimum, matching the remaining term.

We certainly don't want to increase that because that would further limit the benefit to you because even at a lower interest rate.

If you have a longer term than what you currently have on your existing mortgage that additional time, even at a lower rate may cause you to not have the savings you were intending. Let's talk about those closing costs generally as a rule of thumb I like for you to think about spending in terms of the cost of the refinance no more than 2%.

At the very most 3% of the value of the mortgage so they could terms of a $200,000 mortgage were looking to spend no more than $4000 6000 at the most.

Now you're going to need to shop around. What's interesting is that most people only get one bed when they go to refinance well and we might shop around for something that just cost 20 or $30 let alone the largest transaction we will ever have. So let's get at least three if you want one of them to come from your existing lender or bank, that's fine. I make sure at least two of them.

There were from online lenders I go to bank see who has the best rates and loan programs.

Right now, through an online bank.

It changes depending on how much money they have available to lend and then get bids from those folks. Often times, the way that cost runs up as they charge you. What are called discount points. It looks like a great rate but you're actually buying it down on the front end.

I would avoid doing that.

That may make sense in some cases, but generally speaking, let's just try to get the most competitive rate possible with the lowest cost possible and that 2% number should be your target right so get three beds, compare them closely. Check out all the fees and expenses and make sure you keep those expenses in line. Our next is an email from Pam.

She rides my husband and I want to buy a house that we will rent out as an investment is that ever a bad idea. Our goal is to earn income and have the house appreciate in the future I would just say I like real estate as an asset class I would start with your stock and bond retirement portfolio. First make sure you're putting in 10% to a retirement account through stocks and bonds.

If you have the ability then to add another asset class and in the way of real estate.

I think that's a great opportunity. Make sure you go into it without taking on too much debt, though that's one of the biggest mistakes folks make, is the debt services hi and therefore if it's not rented out for a period of time or they get into a financial challenge. Personally, it can really create some problems with the big mortgage so I would say is a goal try to go in with at least 50% loan to value on the front end. That's number one number two. Make sure you go in with your eyes wide open as to the time commitment who's going to take care of the maintenance no routine maintenance when you get a call in the middle of the night. Are you when somebody moves out, and they've damage the property feel who's going to be handling all that he was gonna market it to make sure there somebody in there again. It can be a great thing. But you just want to allocate the appropriate amount of time for that.

And then, and in addition to looking at that and thinking about the debt service. I just want to make sure that you've really planned in your budget for contingencies.

If there's a period of time where it's not rented. Lastly, think about the market right now we are at a very high point in terms of the housing market. It's a sellers market for sure. So that would be my only other caution. Pam, are you paying a premium for this house that's can eat into some of the potential cash flow and should you wait until the market. Perhaps dips down that obligor in a bubble situation, but I think we should could see a cooling in the housing market that could work to your advantage if you wait and buy down the road.

But if you consider those things and you still get thumbs up across the board than I like this idea. We appreciate you sending that email today and let's get back to the phones will take as many questions as we can over the next several minutes to Indiana Rob, thank you for your patience. How can I help you sir yeah I have recently retired end of May and that having finished up a life of building up our savings and obviously our charitable giving, typing, and so forth.

Now were on the withdrawal side and got just looking for some guidance and some thoughts on how do we handle our charitable giving and things in a period of time now where we're going to have less in common were just really taking from our reserves in savings now yes yes well Rob I appreciate you thinking about this and you know as stewards of God's resources. Clearly we should be thinking about holding what we have. Loosely, however much or however little, I realize cash flow is down in this season of life and you want to still found faithful in your getting and I believe God will honor that.

You know, if we take the approach of starting with the tide.

The principle of the tie that we see throughout Scripture giving 1/10 based on their increasing beginning with God's plan a the local church and then moving beyond that in giving sacrificially if we focus in on the tie they think you know it's interesting in this season of life. Because if you've been a tither and you been giving based on your gross income and you've taken and put up a portion of that aside and that's been growing.

Obviously there's a good bit of this money that you're now living on as you take withdrawals from let's say a 401(k) that's been rolled over to an IRA is good bit of that the Geordie typed on so I think you got a couple of approaches.

Your number one is you just say listen as I take income out. I recognize a portion of this is again a portion is my original investment. I'm just gonna see it is my increase and I'm going to just tithe on what I received as if it's just income because it's all provision from the Lord of the other approaches to say no I actually want to calculate the gain each year. The increase the realized increase in the portfolio and that I want to give based on that amount.

However, your approach that I think is certainly something that you need to take into account pray through and get comfortable with you in terms of other income sources, namely Social Security again. I think you could look at the same thing. Clearly a portion of that although be very difficult to account for calculate how much is a return of what you paid into the Social Security system, but you know again it's all God's provision and so I would say just build your budget based on the increase the income that you have here. Whether or not you do it on the full amount or you know on a portion of it, just recognizing the increase versus the original contribution and then give give with that with great joy and open handedly and then I think a look at your balance sheet for additional giving opportunities down the road because you may find that you know you've accumulated more than you need and so you might say you don't Lord we want to give a portion of this to you know out of appreciated stock or you know just straight out of other assets. I think the other opportunity for you Rob and this season is when you get to the place we need to do a takeout required minimum distributions is to look at the qualified charitable distribution where you give directly from one of these accounts, like an IRA to a church or ministry and satisfy that RMD. But where no taxes paid, and therefore you get a better, bigger deduction in the charity or ministry gets a larger amount to put into God's service so that would be something to consider, and perhaps you could use that to offset money, you would have been giving just a regular cash flow this and help those that bring up any other questions in your mind yet.

I think that's that's helpful. I'm also thinking obviously we don't know how long will going to live God But neither my wife or I know what our days fault] partly healthy and your expect to live a long and healthy life. But, and so I'm looking towards that and we made arrangements for the end of our time with that whenever that a comet To children. Start got started. You obviously provide what whatever's left at whatever point time that it is to them, but we also within. I get kind were looking at a three way in one for one child one third for another child and then one third for God's work. So how do we I guess I'm just asking the question, how do we know how much we should plant to give at the end yeah yes is it just whatever's left. Yeah well it's a great question.

I think it's one that you need to approach with obviously a lot of prayer in terms of thinking through where is each child that in their own spiritual walk.

With this money be a hindrance to them based on the lifestyle they have in the decisions they are making or would it be something to be a blessing because they're managing money well making good decisions and secondly you know what you want to do is your last stewardship decision with regard to putting money into circulation in God's economy. I think there's something real to that and do you want to do some giving now and perhaps get the kids involved.

Perhaps you puts money that you would give away a death in a donor advised fund and get them involved in giving it away now and you use that as a way to model some incredible generosity. I want to send your book that I'd like for you to read Rob that I think will help to unpack this. It's a book by her friend Ron blue and it's called splitting hairs, not hairs, but splitting errors it's the best book on a biblical approach to inheritance and wealth transfer to unpack all the principles including the one that a lot of people struggle with. If you love your kids equally treat them uniquely was just simply says we don't necessarily have to treat them all the same and you impacts that as well as a number of other principles so you stand one will get that book right out to you. It's called splitting hairs. Ron blue what you really call us back will talk about what you learned well that's good for us today want to say thank you to my team today. Dan dad was a thank you, Rich Roswell as well and thank you for listening moneywise.

Life is a partnership between you and moneywise media come back and join us tomorrow as we apply God's word to your financial decisions. Hope you will be Lord bless

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