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September 5, 2022 5:30 pm
The Great Commission Jesus gave to His disciples in Matthew 28 should be a constant reminder for us to support mission work, especially if we’re not the ones going. On today's MoneyWise Live, Rob West will talk about some ways you can support the missionaries you know. Then he’ll answer your calls on various financial topics.
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If you felt discouraged, worn down, or are thirsting for. You need rest and renewal high and important post to be coming out and I want to invite you to join the new women's conference for a time of deep encouragement and challenging you hear from me. Author Heather Bowman and so many more wise and wonderful women learn more and sign up for renewal, 20, 22, including events or today's version of money was lost to our phone lines would not go therefore and make disciples of all relationships, baptizing them in the name of the father, Solomon built the Holy Spirit fibroblast Jesus, giving the great commission to his disciples in Matthew 28 should be a constant reminder to support mission work, especially if you're not the one going all talk about some ways you can do that yesterday. We have some great calls lined up but please don't call him today because we're recording this is moneywise live biblical wisdom for your financial decisions will buy the Gospel coalition about how those of us left behind can best support mission work in the field and I want to go over several of them. Interestingly, not included in the list is sending short-term teams like the church might put together over a spring or summer break.
The article points out that while the short-term team spring from a sincere desire to help and most certainly do. No question about that, but they need to be carefully coordinated with the folks in the field so as to not distract them from ongoing ministry just hosting a church team may put a strain on missionaries with limited resources.
So what should we do then to help our missionaries well obviously first is regular prayer and letting your missionaries know that you're praying for them and their work in the missionary sends you a prayer request by email.
Make sure you read it carefully and follow up with prayer during service. Let the request be known in your regular church email to members also.
Next comes financial support, and while the occasional single donation is always appreciated in churches and individuals need to commit to regular and consistent financial support for their missionaries. This is crucial for eliminating the worry that missionaries often have about maintaining their support and whether they'll be sent home to raise funds, something that most missionaries dread having to do their work isn't easy. On a good day without having to worry about future funding.
They face daily cultural and linguistic differences resistance, even persecution, and often harsh living conditions. We can take away at least one of their concerns with regular funding and keep in mind that financial support blesses you as well as your missionaries okay. Next on the list is doing something about homesickness that often plagues missionaries the article recommend sending an occasional care package to your missionaries first asked them if there's anything they need or miss from home. This could range from sermon development materials to food, spices, toys and games back them up and send those packages overseas to bless your missionaries the next way to help them as during their furloughs or home assignments. Often these are particularly restful times were missionaries. They have to cope with cultural transition and all of the logistical problems of returning home. Well you can help your missionaries cope with the stress of returning home in any number of ways, like donating frequent flyer miles. Picking them up at the airport, setting up housing for them. Finding a car they can borrow while their home or help with childcare.
If they have to make rounds to several supporting churches.
You may have a professional skill you can provide at no cost, like medical or legal assistance. In short, make their needs known to your church and encourage members to volunteer their time and other resources.
Now if you really want to visit a missionary overseas making a vision trip where you try to acquaint yourself with the area and work it's underway. You can then return home and share that vision with your fellow church members to encourage more and faithful support. If you are planning a short-term team visit don't go into it with any preconceived notions about the kind of help that's needed. Be sure to consult with your missionary about what kind of work will really be helpful and if a monsoon hits while you're there. Well be ready to scrap your plans and help mop up what a catastrophic earthquake hit Haiti in 2010, George or missionaries who thought they'd be helping with building projects found themselves helping medical missionaries treat victims. The next item on the list is being or sending a medium-term missionary. This may be something for retirees to consider if they're financially able to spend one or two years in the field. That's enough time to learn the language to make a significant contribution. Medium-term missionaries are able to afford full relationships with locals that will help sustain the ministry in the long run. Just the ability to teach English to local served by the ministry could be of help. So you see there are ways you can support missionaries. Hebrews 1316 tells us do not neglect to do good and to share what you have, for such sacrifices are pleasing to God because for a break. We come back much more on the program so don't go anywhere. Thanks for joining us today and moneywise live biblical wisdom for your financial decisions.
We apply God's word to what you're dealing with financially. As we try to live within our means, only dad have some margin or flexibility live with contentment give generously.
These are all principles we find in God's word. We can apply to how we manage his money. Our team is off today were taking some time away from the studio, so don't call him but we got some great questions.
We lined up in advance so let's head back to the phones will head to Mississippi Elaine thank you for your patience. Karen I love you and thank you for taking Max out here. Well thank the Lord that marked on a dad and he laughed like plate back and he laughed all year 401(k) investment type thing may vary.
Dolly Parton ever trot that out. The problem is a daughter that's why he had it now like that but he did not like a whale okay laughed at their late disaster situation 18 Her Way 401(k) over court had you now it is just really complicated how they got it day and her mom thanked that she should have 100 and back not. You can't do the government want a lap. What are the think things out that you have one person in eight person per year. Do you have any idea it's driving me distraught light on my relationship with my precious granddaughter practically right any broken heart. What can I am so sorry to hear about your son's passing and the challenges that these finances are creating in the relationship.
That's the last thing we want here.
What is the concern on the part of your granddaughter, it's that she just doesn't understand what you can give her more money now or is there something else back now. Anything want any of her mother's side of the family and any other people who know little bit about a very critical of me.
I will do you understand now. I totally do yeah certainly I think the first thing is really clear communication Elaine and you can't control what she receives out of the communication. You can make sure you are consistently and continually communicating very clearly about your intentions, which is my desire is for you to have this money. Now I need to do that within the bounds of the law with the IRS is going to allow me to do, but my intentions are very clear.
So that's the first thing is to make sure there's clear communication.
The second thing is that how do we practically go about that now. With the money that's outside of the retirement accounts. It's a lot easier, you reference the annual exclusion which for this year 2022 is $16,000. That means that you can give 16,000 without filing a gift tax return.
Based on that annual exclusion, but you can actually get quite a bit more than that because then there is a lifetime exclusion of $12.06 million that you can give to someone without paying any gift tax know you'll still have to file that gift tax return. When you go above the 16,000 you can do annually but it's not gonna trigger any tax until you get above the lifetime exemption of $12 million, which most people are going to get. So for that reason you couldn't really give again outside of the retirement accounts is much as you want as long as you are filing appropriately. The gift tax return to reported to the IRS for any gifts beyond 16,000. Then there's the issue of the retirement accounts which is not quite as simple because you're going to generate taxable events as you pull the money out and I think that's where you need to do some planning, perhaps allaying the other step you could take is to put a trust in place basically where you would allow the trust to talk about the purpose of the money and how it's to be used and distributed over time to your granddaughter.
You could talk to an estate attorney about that.
I think obviously you want to make sure that you have her named as the beneficiary on those accounts and there are specific rules as to how you have to pull that money out anyway. Of those inherited. Let's say IRAs. For instance, with an inherited IRA as a nonspouse you a couple of different methods by which you have to pull that money out even either over your life expectancy, or over a 10 year. You want to talk to your CPA or tax preparer about that, but as that money comes out in a tax efficient way and according to the IRS rules. Then again, going back to that lifetime exclusion on gifting to anyone. Frankly, you have the ability to give her as much as you want right now.
As long as you're just reporting it.
Does that make sense about the lifetime will carry will back all destroyed. Not situation that you know her more and report HTML know it has nothing to do with that you have the ability to essentially up to the annual exclusion and then beyond that, up to the lifetime exclusion give as much money as you want away and that the gifting of that money as long as you reported is going to have no bearing on your tax situation. Either your your benefits from Social Security or the tax that you will pay or in ordinary income. The taxable events are going to occur for you prior to you giving this money to her because as that money comes out of the retirement accounts that's going to create taxable income. You can want to allow for that tax that's due, to be held back because that is something that you're going to have to recognize each year as the money comes out of those qualified accounts and then the net amount amount that you will have available after tax you can give that away as much as you like and that's not can have any bearing on you. So I think the key is for you to have a relationship with the CPA who can help you determine the taxes due.
As the money comes out of the retirement accounts you can hold that back and then per pass 100% of the net proceeds onto her and again, you just need to report that any gift tax report to the IRS beyond 16,000 finish up off here right back on moneywise day with thanks for joining us today on moneywise live this way for the studios were not here. Don't call in, but we got some great questions.
We lined up in advance will go there in just a moment but first let me remind you moneywise is a partnership between Moody radio and moneywise immediately rely on your support to do what we do on the airwaves each day and enter Alpine on the web's if you consider a gift would certainly be grateful to set moneywise.org and click donate your just before the break we were talking to Elaine and we were talking about how to get this money to her granddaughter that was left to her by her son and this really raises a couple of issues that I think we really need to be thinking about number one is we need to have the right instrument in place to pass our resources to the next steward in a way that's thoughtful. We need to have the next steward chosen and prepared.
Now the legal instrument to do that is most commonly a will.
The challenges that Gallup's latest polling finds the test slightly less than half of adults, 46% have a will that describes how they would like their money in a state to be handled after their death. That's a problem we need to solve that folks we need to have a will. We don't want the probate court deciding where are things go. But then the other side of this is is the next steward not only chosen but prepared and I think as a part of that preparedness. We need to be communicating.
Here's our intentions. This is who I'm leaving it to here's here's why am leaving it to you.
I'm not leaving it to him giving it away and here's what I am doing that there's a communication element, there's also a training element as well because we recognize first we need to pass spiritual capital that's preeminent that we need to pass character capital.
Then we passed financial capital when it's ready, because the last thing we want to do is pass a significant amount of money to someone who's ill prepared to handle it or where it could actually derail their spiritual journey it could be a hindrance toward them growing in their relationship with Christ. In this case. Poor lame. It's wreaking havoc in her relationships with her granddaughter and with others, and that's because of a lack of communication prior to this passing that resulted in this inheritance and that not effective planning lanes. Also concerned just about her granddaughter's readiness for this and that's a real concern which is where planning comes in things like trusts that can allow the money to distributed be distributed only after certain conditions and triggering events are met. So this is really a critical topic that I think we as believers and Americans need to do a better job with, let me recommend a resource if you want to think more about this topic. I would encourage you to pick up a copy of Ron blue's books, splitting errors e.g. IRS splitting errors. I think it's the best book out there on the political perspective of wealth transfer. Really, the decisions the principles you need to be thinking about not necessarily the mechanics of the legal instruments but really all the decisions that will lead to which legal instruments you select and how much is given to either charity or ministry or your errors because other than the government. Those are really the only two places it can go so I would pick up a copy of that book. If you're at all thinking about this and if you don't have a will. Let me just say very clearly today is the day reach out to the godly attorney and get one in place. I step off of my soapbox here I will head back to the fold gems in Tennessee and Jim you been waiting patiently governance or IQ. I am calling about thinking about you try to pay off your dad and his possible and I would maybe help me write off my mortgage and about 60,000 left on in maybe 20 years at 378% interest rate would you recommend maybe paying off the mortgage with my 401(k) money which is not a huge amount of maybe Ron one 2140 was already I'm 69 working and not started Social Security plan to start that turn 70 and working for you more know what you retirement age.
You probably realize that you can make as much money as one that you have no bearing on your Social Security and by waiting until €70 check is likely to be know as much is 24 to 32% more because it's growing by 8% a year so that's great. Are you trying to continue to work just as long as you can. Jim you much okay yeah you know I like the idea of getting that mortgage paid off.
You got 60,000 you said the runway on that the remaining term is what about 20 years long. Okay. But here's what I would do rather than pull it out of the 401(k) which is to create a taxable event and the lid slightly down right now with the market right so now's not a great time to mentally create the tax but to realize and lock in those losses. So what I do is leave the 401(k) there. Let that rebound and continue to grow and then pay down the mortgage accelerated out of current cash flow. In addition to that as you start collecting Social Security if you're still working. I suspect that's gonna be all surplus that you have available, and so at that point I would take 100% of that and start putting it toward the mortgage as well. So unless you have just a real conviction from the Lord to be debt-free absolutely soon as possible.
I would say I'd stick with that mortgage, but just look for every way you can to accelerate the payoff and let's kind of resist this urge which is just natural that as income rises and you're about to have a significant rise in income is Social Security kicks in. Let's not allow lifestyle creep to chew that up. Let's take 100% of that imported toward the mortgage and maybe we get that 20 year pay back down to 10 or less as I make sense paying on the more extra comes out of the tail end of the no sir you want to make sure that goes to principal right away and with the unamortized mortgage you're paying interest on the interest so every dollar you reduce that principle by his money that you're not gonna be paying interest on for the remaining term of the mortgage. So you're gonna want to talk to your loan servicer about how they want you to make the payment. If you pay online you want to check that box it says add to principal or if you pay by the mail. You may have a coupon that allows you to do that most of them are equipped to handle that. You just want to make sure it's applied appropriately which is reducing the principal immediately as they receive that you have the funds beyond the scheduled monthly payment for Greg.
I appreciate your your good work will appreciate that you have a quick follow-up on Social Security. My wife and 66 she's not started her Social Security either and they shall have different rules from because of her age being a little younger than than mine, but I'll think about it. Okay, it is not an RF playing another 8% of Highway 70 is accountable. Why it is right now but see that's temporary and I think were looking at really a temporary situation here.
I don't think were going back to the Fed's target of 2% anytime soon to be an elevated inflation.
Here for quite a while, but I think we are headed back. Probably closer to 4%. So if you're still working.
You don't need the money. Your good health. I wait as long as you cannot guarantee the percentage really nice.
Jim, thanks for your call to pause for a quick break again were not here today taking some time off to go: more questions just around the corner. This is money wise biblical wisdom for your financial decision.
Some Rob Weston will be right back don't go anywhere. This is moneywise live with Rob Weston. If you hear a phone number mentioned today. Please ignore that number and don't call us because today's broadcast is a reprise edition but we think the upcoming information will help you and make you a wise steward of what God's given so please stay tuned, but said back to the foods Tennessee David, thank you for your closer read military guy work about five. I have moved most on you know let allocation will now I was wondering about 40 ratio effectively so you statement right lot know a little over 7000 order safety or that he.
Your strategy would be better and yet the current financial stability yeah well it's a great question David. First of all, is retired military grateful for your services are you know is is a challenging question, especially if you're right on top of retirement because you know a typical allocation know where he might be 6040 stock and bonds as we head into retirement. We might flip that angle 40 stock 60 bonds are even less toward stocks with bond prices falling as interest rates rise. On top of the pretty significant pullback we saw in the have seen the stock market. A lot of folks is really struggling to kind of figure out what I do with all of this in light of that, let me ask you a couple questions.
What you have in this TSP right now okay and when do you plan to retire probably will only go make sure that's great delighted to hear that that's what you think about it, so you said you're 55 now so you got somewhere between seven and in 10 years you will probably never know what is your allocation right now just a breakdown between GC and S but it's about 6040 okay so you're really 100% in stock so okay yeah just for the benefit of her audience here when we throw in these terms TSP GC NSU Pro like what is that the TSP is the retirement plan. Your government employee or is in the armed services and the GC and as have to do with the various fund types that they have inside the plan G is the government securities fund. The sea is the common stock fund and the asses. The small-cap stock funds of these are smaller companies that are more growth oriented. So because your hundred percent stocks and given that you got stilled 7 to 10 years. I would say if it were me I would not make that allocation change right now.
You still got time on your side and if everything goes according to plan your to be working. Beyond that, so you probably won't have to touch this. I'd let this recover, but then after it recovers and I'm thinking sometime next year. I think were going to the market will recover.
Probably six months before the economy were probably in a recession now. I think it will be mild based on the economists I talked to and even though longer term, we have some challenges ahead of us and I think were probably to be in a sideways market here for little while. I think it will recover and we still for all intents and purposes are the strongest and biggest economy in the world and through innovation, and a whole host of other things. Again, despite our dead challenges and some policy challenges in energy and a whole host of others. I think the market will be the very best place to build wealth and overcome the effects of inflation.
So, in light of that, David. I would probably let this recover and then I would begin to shift more toward a balanced approach. You could either use that the L funds in the TSP which is the lifestyle funds were would automatically get more conservative as you get closer to retirement age.
Or you could just start to do that yourself as you move into the F the fixed income investment fund and then probably once you reach retirement were probably look in at your wanting 60% in fixed income 40% in stocks.
If you're continuing to work or if you want to draw on income you probably are as much is 70% fixed income and 30% stocks that would probably also be the time to look at rolling into an IRA and having an advisor manage it for you with your goals in mind. Begin your thoughts on that. So good. Back back like the L 2030. Yes, you have some in the G fund. Now I thought you said the G fund was at 0% allocation by over, you know on all yes you missed a lot of that downside then correct. Oh that's great yeah yeah so I think this is a great time.
Then I apologize. I miss that so I think this is a great time. Given that were down in the market. And yes, we could be done more for sure, but given where we are today for you to start to move toward your longer-term allocation that makes sense in light of your age and proximity to retirement your answer.
I told they'll fund this can be a great way to go there. I think that gives you an automatic rebalancing as you get closer to retirement, I write a daily God bless you and again thank you for your service or I listen to Kansas. Don, thanks for going to the government had yeah Don and I have a question about my 401(k). I am 73 and I have 401(k) with my work here. I am still working with fidelity and I recently I've lost quite a bit.
Of course I and I am I got to think about maybe at 73 I'll never see much of a rebound. So when I went to Nana and I moved 80% of my value into a phone call Putman stable value funds that hadn't lost anything, but don't gain very much bond investments. Right then I move the other 20% in the Pioneer straight Inc. fed US bond and that and I was and I got seven fed DMI DH I don't know what on this rate. Not my sheet, but do you think I unwinds bipolar II can always go back and put it back into the stock market, but I thought well at 73. If this can at least wait till after the election. After the first year and see what happens. I might not be live long enough to say this rebound is what you have in this 401(k) right now down how much 84,000 basically and are you living on any portion of this people in income from this or is this just out there. Now I'm not, not: the I actually kinda did what your other solution your prior I waited till I 70 to draw my Social Security.
My wife did the same thing about she works part-time and I worked on full-time so I don't need this money yes are very good/think in light of that, I essentially in the stable value fund, you're in a cash or cash equivalents uses cash alternatives and wrapped accounts to essentially maintain a stable or a level return with some sort of yield on it so the other. This is about protecting the capital so you're essentially in a cash equivalent to the question you're asking. Should I go back into the market. I mean I think you know, given where we are today and the fact that you missed the downside or good bit of it. I realize you have some concerns about the policy decisions. Where were heading as a nation, even economically, and I would agree with a good bit of that. I think you know the very best way for you to grow this portfolio is to have a balanced account so I would have probably a 20% maybe 30% allocation to stocks in an account like this. Even at your age of 73. Just because I think over time that's good to be the very best way to you have this return be better than what you would get in a cash type account which is losing purchasing power every day, and I realize there is risk with that. But, especially as we peek out on interest rates then you can have the lion share in a bond strategy were at least you're getting, you know, a decent yield with high quality government and corporate bonds. So I think over the balance of this year.
If it were me, I'd probably begin to move back in systematically to the market with the right allocation of stocks. It probably 20 to 30% in fixed income at 60 to 70% and do that systematically between now and the end of the year so that as the market recovers and we could all debate whether that's can happen and in what time. You'll have the benefit of taking advantage of that. The other option. Don would be to connect with an advisor who could really take responsibility for this and make these decisions on your behalf that that was something you wanted them to do and you can roll it out to an IRA which gives you ultimate flexibility on the types of investments.
I got just about 30 seconds left in your thoughts.
While I appreciate that. Thank you very much. Yeah, I'll look into that and appreciate your advice.
Thank you very much, well, we appreciate your call today sir and may God bless you. Well folks that's going to do it for us today so thankful that you stop by as we together in community try to find God's heart for managing his money know we think about our role is Stewart. It's a high calling, where money managers for the King of Kings getting bigger than that. So we want to be found faithful and we want to go back to his word, so we understand how to go well.
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