How Big Are Your Barns?

One of my favorite passages is in Luke 12, the parable of the rich fool. Do we still need to be concerned about the size of our barns today? I am Rob West.

Actually, yes. Not many of us have barns these days, so we'll just use barns as a metaphor. Jesus' message in that parable is every bit as important for us today. I'll talk about that first, then it's on to your calls at 800-525-7000.

That's 800-525-7000. This is Faith and Finance Live, biblical wisdom for your financial journey. Okay, so let's look at the first part of the parable, Luke 12, 16 through 19. That's where Jesus says, the land of a rich man produced plentifully and he thought to himself, what shall I do? For I have nowhere to store my crops.

And he said, I will do this. I will tear down my barns and build larger ones. And there I will store all my grain and my goods. And I will say to my soul, soul, you have ample goods laid up for many years.

Relax, eat, drink and be merry. Now, a lot of people might read that and think, hey, that sounds like a solid practical solution. You've got too much stuff coming in. Your barns aren't big enough.

You need bigger barns. What's wrong with that? Well, the rich man finds out what's wrong in the next two verses. They read, But God said to him, Fool, this night your soul is required of you, and the things you have prepared, whose will they be? So is the one who lays up treasure for himself and is not rich toward God.

If that theme sounds familiar to you, there's a good reason. Charles Dickens no doubt borrowed it when he wrote A Christmas Carol. Of course, there Ebenezer Scrooge takes on the role of the rich fool, obsessed with money and possessions. But unlike the rich fool, old Ebenezer gets a second chance.

And so do we. Our second chance starts with understanding what rich toward God means. It's an unusual phrase, and God's word doesn't elaborate on it.

But we can get an idea of its meaning by contrast. It's the opposite of building bigger barns or laying up earthly treasure for yourself. Being rich toward God is acknowledging that we're made for him, not our own pleasure or possessions, that our abundance is in God, not our bank accounts. Rich toward God means counting him as greater riches than anything on earth. And it means using earthly riches to show how much we value God.

How do we do that? By giving generously to his kingdom. Had the rich fool done that, he might have heard these words from Matthew 25. Come, you who are blessed by my Father, inherit the kingdom prepared for you from the foundation of the world. For I was hungry and you gave me food. I was thirsty and you gave me drink. I was a stranger and you welcomed me. I was naked and you clothed me. I was sick and you visited me.

I was in prison and you came to me. As you did it to one of the least of these my brothers, you did it to me. But the rich fool did none of that. He thought only of himself and when he died, he left his earthly treasure behind. Now, Jesus is not saying that our works save us, but he is saying that not doing the good works we were designed for will hurt our relationship with God. Jesus is teaching that money and possessions are dangerous because they can lure us out of love for God and keep us from treasuring him. Because of that, some might think that money is bad, but it's not.

It's really a powerful tool that can be used for good or bad. While the proper use of money can store up treasures in heaven for you, the improper use of money can be hazardous to your spiritual health, as it was in the case of the rich fool. The problem wasn't that he became rich. The rich are no less godly than the poor. The problem was that the rich fool ceased to view God as his supreme treasure. If God had been his treasure, what would he have done differently? Well, instead of saying soul, you have ample goods laid up for many years, relax, eat, drink, and be merry, he might have said something like this, God, this is all yours. You have made my fields prosper. Show me how to express with my riches that you are my treasure and that riches are not.

I already have enough. I don't need more luxury and leisure. Then he might have gone on to say, I do indeed want to make merry, but not with self-indulgent peers. I want to share your blessings and make merry with the people who have been helped by my generosity.

I want the fullest blessing of giving while giving all glory to you. Had he said that, the rich man wouldn't have been a fool at all. He would have been a very wise man who was rich toward God.

He would have discovered that as Jesus is quoted in Acts 20, 35, it is more blessed to give than to receive. The rich fool learned that the hard way, but we don't have to, we can learn from his mistake and strive to be rich toward God. I hope that's an encouragement to you. All right, your calls are next, 800-525-7000. We'll be right back. Great to have you with us today on Faith and Finance Live.

I'm Rob West. We're taking your calls and questions now on anything financial. The number to call is 800-525-7000. We've got some lines open today. We'd love to tackle whatever you're thinking about here on the program. 800-525-7000. Let's begin today in Georgia. Sharon, you'll be our first caller. Go ahead.

Hi, thanks for taking my call. My parents want to put their house in my name and we want to get it all taken care of before anything majorly happens. They even paid off all my debt to make my credit good where they can do this. How do we go about doing it? What is it they're trying to accomplish, Sharon? Just put the house in my name and not theirs. Yeah, and why is that though? They're leaving the house to me.

Okay. Yeah, it would actually be better if you inherited this house as opposed to receiving it as a gift. They could very easily quit claim deed the home over to you while they're still alive. They would fill out a quitclaim deed and you can find them online.

Better yet I'd go to a real estate attorney and have someone do that and then that would be recorded in the county where the home is and your name would be placed on the deed and they would fill out a gift tax form because that would be a gift. There wouldn't be any taxes on it but they would have essentially gifted it to you so you're now the owner of the property. The problem with that is that when you receive a property as a gift, you're going to keep their cost basis which just is the purchase price that they paid for it. If you were to turn around and sell it down the road, you would pay capital gains tax on the profit between your selling price and their original purchase price. If you receive it from them as an inheritance, you enjoy what's called a stepped up cost basis. At that point, the basis to the property increases to the market value as of the date of death. And then if you were to turn around and sell it right away, you wouldn't have any capital gains because you would be selling it for essentially the same price as the cost basis was, which again was reset or stepped up as of the date of death.

So that would be a reason that they would want to give it to you either through a will, a trust, or what's called a transfer on death deed, which is a way they can transfer it to you outside of the probate court, again at death, but to do it very efficiently. You're in the state of Georgia, is that right? Yes, sir. Okay. And is that where the property is located? Yes, sir. We've had the property for almost 52 years. Okay.

Yeah. So this would be really important here because their cost basis is going to be very low. And if you turn around and sell it, you're going to have a pretty significant profit between your selling price and their original cost basis that would be taxable. If you receive it through inheritance, that's not going to be the case. In Georgia, there's something called a TOD deed, which stands for transfer on death. It's also known as a beneficiary deed. Essentially, once this is put in place, this allows the property owner, your parents, to designate you as the beneficiary and you would automatically inherit the property upon their death and it would avoid probate, which slows it down and adds additional expense. And you would also receive that stepped up cost basis at the same time. So you'd have no tax, no capital gain tax if you turn around and sold it.

Okay. So a TOD deed? It's called a TOD deed, which stands for transfer on death. It's also known as a beneficiary deed. I would contact a real estate attorney in your area there and they can very easily craft one of these and tell you how you need to file it in the county so that it's on record and then when your parents pass away, the second one of the two pass away, the property would automatically come to you outside of probate. Yeah, that's what we were scared of, but I never plan on selling it.

I was born there, raised there, still am there. I don't ever plan on selling it. We were just scared on how to do it because we were scared if both of them passed away that it would automatically be turned over and I wouldn't be able to get it.

Yeah. Well, as long as they had a will, it would come to you. It would just take a little time to work its way through the probate court. This TOD deed or the beneficiary deed would ensure that it automatically passes to you outside of probate.

So it's efficient, it's quick, it's private. It's not happening as a part of the public record, but it's also allowing you to get that stepped up cost basis. So I think that's what you're looking for, Sharon.

And I would give a real estate attorney a call there in your area. God bless you. Thanks for being on the program today. We appreciate it. To Kansas. Hey, Joe, thanks for calling, sir. Go ahead.

Yes, sir. Well, my situation is I'm a retired public servant. I draw a pension from the state of Missouri. I got bad tax information from my tax preparer who assumed that my tax burden would also be the same in Kansas. So about five years ago I bought a house in Kansas or seven years ago. And then three years later I got a note from the state of Kansas saying that they do not exempt my tax from state income tax or my pension from state income tax. So I've been paying state income tax all this time. Right now I've got a 2.87 percent interest rate at home and I'm kind of looking okay. At what point am I better off to go ahead and sell and move back to Missouri to keep from having to pay that income tax?

Yeah. Well, I think you need to get a CPA, perhaps not the one that gave you the bad advice, but another one. Just look at your situation and do an analysis on how much more are you actually paying and whether or not, you know, what the financial benefit would be to you establishing residence in another state and then determine you're going to have to weigh that financial expense against where you want to live, which is not all financial in nature. I mean, it has to do with who you're near and work situations and just the lifestyle you want to lead and so forth. So but I think having that data on the actual cost annually for you to live in a state with income tax, state income tax versus another gives you the information you need to then pray through and decide, you know, where you want to live ultimately. Right. My son, actually, they've moved from Kansas. They lived with us for a while there.

They moved to Missouri, which we are in Kansas City. So it's like, you know, I can be in Missouri and basically be in the same geographical area. The big thing is the to me is right now the interest rates. If I could, I'll have to buy a home and have a mortgage. Fortunately, this because of the cost. So that's that's kind of I appreciate that.

I have tried to put a price on what this is going to cost. And just at this point, I think it's it's just there's some point I should probably go ahead and move, I guess. Yeah, potentially. I mean, I think it'd be interesting for you to have that data and just to do some tax planning to see what is this actually costing me and to make sure that you do actually owe what you think you owe. I mean, if you were paying income tax in another state, you wouldn't be liable for income tax in two different states.

So you need to make sure you understand that. But then secondly, what is the actual cost going forward to you residing in Kansas? And I think once you have that planning done, then you can make a decision as to ultimately where you might want to live. Now, if you need help with a godly CPA, you can contact a certified kingdom adviser in your area. Do a search for a CKA on our website at faithfi.com. That's faithfi.com.

Just click find a CKA. Thanks for your call, Joe. Back with more of your questions just around the corner.

800-525-7000. Great to have you with us today on Faith and Finance Live. You know, we opened the program today by talking about the parable of the rich fool and really this idea that we're to be rich toward God, handling our money in such a way that it makes it clear that God is our true treasure and not our things. You know, my friend John Cortenez and his Greg Balmer, one of his co-workers and trusted advisors, wrote a book called God and Money and in it they share a modern day twist on that rich fool parable. Let me share it with you. I've always enjoyed this. Again, this is a modern day twist on the rich fool parable.

Take a listen. Someone in the crowd said to him, teacher, tell my boss to pay the full year-end performance bonus he promised me. But he said to him, man, who made you a judge or arbiter over? And he said to them, take care and be on your guard against all covetousness for one's life does not consist in the abundance of his possessions. And he told them a parable saying, the stock options belonging to a manager vested after a major run up in share price. And he thought to himself, what shall I do for I already have enough saved to send my kids to college. My house is paid off and I already max out my 401k every year.

And he said, I'll do this. I'll open an income account and create a passive income portfolio and I'll exercise my options and put the money there. And I will say to my soul, soul, you have a big enough portfolio to be financially independent, retire early, plan some vacations, play golf. But God said to him, fool, this night, your soul is required of you and the portfolio you've built, what use will it be then? So is the one who endlessly builds his net worth and is not rich toward God. Now, this is a, of course, a modern day twist on that rich fool parable. And perhaps for some of you, maybe push back a little bit saying, wait a minute, Rob, don't talk about my golf game.

And here's the reality. There's nothing wrong with golf. There's nothing wrong with wealth. As long as we're not anchored to it, as long as our trust isn't in it, as long as we're not seeking wealth as a means of providing us with significance or purpose in a, in a way that it was never intended to you see money as a tool. And when we maintain an eternal perspective and say, God, I want you to be my true treasure. I want to handle the things that have been entrusted to me, the resources that have been entrusted to me in such a way that it's clear that, Lord, you are my ultimate treasure. Well, then we can be conformed into the image of Christ and be using God's money as a tool to accomplish his purposes.

That's the ultimate objective here as we read God's word and we consider how we might need to think about our role as stewards or managers of God's resources. I hope that's helpful to you today. And let's head back to the phones. We've got a few lines open. We'd love to hear from you.

The number to call is 800-525-7000. Let's go to Ohio next. Hi, Linda. Go ahead. Hi.

Hi, Rob. Thank you for being there for us with your wise advice. Well, thank you.

Yes, and I live with the Scriptures, seek ye first the kingdom of God and his righteousness and all these things will be added to you, which I have, and I thank Jesus for blessing me. My question is, I am 72 years old. I am. I was a retired school teacher, so I have a teacher's retirement system. I made sure I had a good retirement. I have a nice annuity and savings money market.

Anyhow, the Lord blessed me. But my question is, I inherited my parents' home, and it's a big house, first floor, second floor attic and basement, and I'd like to get a ranch and first floor laundry. So I would like to purchase a home, and should I use savings to pay the 20% down, and then when I sell my home, put that back, and then use my annuity for a great part of the mortgage, or should I finance? Yeah, so let me make sure I'm clear here. So you inherited the property from your parents, their home. What's the value of that property? It's an old home.

I don't know. In my neighborhood, some homes are going 100, you know, it's because it's an old neighborhood. Some are going one house, sold 140.

My house is nice. I wouldn't skin anybody, so because of the age, and I would probably ask maybe 110, under 110. Okay, let's say it's worth 100,000.

Because I've had a break all my life, but you know. Let's say it was 100,000. Are you planning to sell it, Linda?

Yes. Okay, and how much do you want to pay for your next home? Well, with everything I would like, I think probably minimum 189.

The way homes are selling, I want first floor laundry, three bedrooms. I have stuff. I'm sorry to say that, but. No problem. I understand.

Let me ask you this. What is the home that you live in? So. Sure. What's the home that you live in today?

What do you think that is worth? That's where I'm living, in my parents' home. Oh, you're living in the home you inherited. Okay. Yeah, because. Very good. Yeah. I had sick parents and I moved home to help them, and so I helped them all their life.

I never married. Okay. And so. And what do you have in savings today?

I have over 50,000. Okay. All right.

And. Liquid money. Liquid money. And then what are you covering your bills with? The annuity plus social security?

No, no. My retirement. I get it. I have a nice retirement.

Okay. So you're not working and that's enough to pay your bills? I got my 4,000 a month retirement.

I'm sorry? And that's enough to pay your bills, the retirement? Oh my, yeah. My bills only come to probably 500 a month.

Gas, electric, water. Okay. Very good.

Yeah. So I think you're in a position here to go ahead and put that 20% down out of cash. You've got plenty of surplus. And then as soon as you sell the property, I would pay it off and then you'll be in a great position there. If you couldn't pay it off, maybe you keep a small mortgage until it's paid off. But you've got plenty of liquid assets here.

I wouldn't draw it down to zero. I'd keep several months worth of expenses, but you'd have enough to put your 20% down, get your mortgage and then put that full proceeds of your parent's home toward this property when you're done. You're still going to have quite a bit of surplus on a monthly basis and be in a really great position. So that would be my best advice on where you go from here.

I know mortgage rates are high, but the good news is you're not going to have this mortgage that long. So you'll be in a really great spot. Thanks for your call today, Linda. God bless you. We'll be right back. Great to have you with us today on Faith and Finance Live.

I'm Rob West. Hey, Faith and Finance Live is listener supported, which means we rely on your financial support for this ministry to do what we do on the air each day and with our counselors and through our app and on our website at faithfi.com. And if you'd like to support our work with a gift of any amount, we'd certainly be grateful. You can support the ministry at faithfi.com. That's faithfi.com. Just click the give button.

Thanks in advance. To Chicago we go. Hi, Kathy. Go right ahead. Hi.

Thank you, Rob. I have a question about retirement investments and fees. I have about 370,000 that I just moved from Tia and fidelity to Edward Jones. And tomorrow I have a meeting with the new financial advisor to set up my portfolio. I requested information about fees, and I've been trying to understand what was provided to me. It appears to me like on the one hand, there's an IRA brokerage account option where the financial advisor will receive commissions. And then on the other hand, there's what might be the only type of account, but the fees don't look small.

I wonder if you have any thoughts on these different types of things and how I could go about better understanding which is best for me. Sure. Yeah, I'd be happy to. I generally like with this size portfolio and actively managed approach, and that would typically be an annual fee, which is a percentage based on the assets under management. And at 370,000 in investable assets, which is not an insignificant amount, it's a substantial portfolio, I would expect somewhere between one and one and a half percent a year, probably one and a quarter percent a year would be average.

And for that 375,000, that'd be about $4,600 a year, which is a lot of money, and yet that would be normal and customary. And for that, the advisor would take discretion, which basically means he or she would develop the investment strategy as they spend a lot of time with you doing discovery, getting to know you and your goals and objectives, what your income needs are in retirement from this portfolio, how this relates to other assets that you have, what your risk tolerance is, and then he or she would deploy that portfolio and then actively manage it, not necessarily making day training or anything like that, but making changes as appropriate over time, and it would be under their responsibility, and for that you'd pay an ongoing percentage of the assets under management. I think that's a better approach than them selling you a product that earns a commission, and then they have to buy another investment product in order to generate another commission. I think the active management assets under management percentage is a better model. Does it say if they were to do that fee only approach that you described what that management fee would be? If I'm recalling, it's one and a half percent, and then there are a few other fees as well.

Okay. And that would be typical, although they should be very small. I mean, it might be a transaction fee every time something's purchased. If they're buying mutual funds, there may be a fee inside of that, but it shouldn't amount to a whole lot. Now, how did you find this advisor? Is this somebody that's personally known to you?

I met her in a Bible study at church. I don't know her super well, but I made a very impulsive move and then started worrying about fees. My money's been sitting for years with Tia and Fidelity, and I'm still working, so I have an account.

I'm still saving for retirement, but in a completely different account in power. So I just moved the two. I'd always thought, well, I need to combine these.

I need to put them together. I thought it might be nice to have somebody to meet with and talk to, you know, about it. And so, you know, I just I did it. And then after the fact, I started worrying about fees, you know. Yeah, I wouldn't be terribly concerned about it.

I mean, I think what I'm hearing from you is perfectly in line with industry norms. So it's not like she's charging you more than you would expect. I think the biggest thing is, do you find a good rapport with this person as you, you know, spend time with her? Is she really spending time getting to know you and kind of what your needs and desires and goals are?

Is there ample discovery there? How is she going to communicate with you? And does that fit with what you're comfortable with in terms of the frequency and the mode of communication? How do you fit among her other clients? Are you on kind of the smaller end of the range of the investment portfolio she manages? Is she going to hand this off to another advisor in the office? Or are you going to be one of her core clients?

I mean, I would want to explore all of these kinds of things and make sure you feel like you have a really good comfort level. I also don't think it would be inappropriate for you to interview one or two other advisors and find the one that you feel like is the best fit. And if you wanted to entertain some other advisors, I would reach out to some certified kingdom advisors there in Chicago. There's plenty of them.

And you could do that search on our website at faithfi.com. But to the point about the fees, I would do the fee only option if it were me. And I think what you're describing is perfectly in line with industry norms. Okay, thank you so much. I appreciate your your insight. Absolutely. Kathy, thanks for your call.

Let us know if you have any questions and we can help you after you have that meeting. Let's head to Indianapolis. Hey, Matthew, go right ahead.

Hey, Rob. I recently got married and my wife has a loan on her car. And I know you typically say the cheapest car is the one you have currently.

But I was just trying to maybe throw it by you and ask what your opinion was, maybe trying to sell it. It's worth more than what she owes on it. And so I was thinking maybe if we could get a cheaper car. Yeah, it's a 2017 Honda Fit.

We owe I believe 9000 and it's worth probably about 15 or 14. So I was thinking if we could get the five grand and buy a $5,000 car. Yeah.

And who would be driving this car? She was hers. Okay. Yeah.

And do you all have kids or is it just the two of you? Nope. Not yet. All right. And is she working or is she at home?

At the moment, she's at home. Yeah. Okay.

Yeah. I mean, the only thing I would say is, sure, if you're looking to downsize, especially if this is kind of outside of what works with your budget, you know, I think it's worth considering the challenges of $5,000 automobile is, you know, going to have it's gonna be pretty high mileage. And, you know, it may require some repairs. And, you know, if this is your wife's car, and she's out and about, and all of a sudden, she's breaking down on the side of the road. I mean, you know, it doesn't mean it's not like you're saying, Rob, we've got a, you know, $60,000 automobile with a $40,000 note on it.

And so I think you would just need to really spend some time before you do this doing some research on what might you replace it with? And what is the age and mileage on that car that you'd be able to get with that budget? And are you comfortable with that just in terms of reliability? Not only that, but just the ongoing maintenance, especially since it would be a probably a high mileage car. And those would have been miles that were driven by somebody else.

So you don't know how it was maintained and cared for. Obviously, you could get a review, you know, you could have an independent mechanic take a look at it and give you an honest assessment. But I just be slow, especially with used car prices still elevated right now. Obviously, you're going to benefit from that on the sale, but you're going to pay top dollar for the next car you're going into, you know, as you try to replace it.

And, you know, for your wife to be the one driving that high mileage older car that's less reliable, I would just have some concerns about that in terms of, you know, her getting stuck somewhere. So I guess my question, my answer to you was, let's start with the budget, figure out what you guys can afford. And then secondly, before you sell this thing, do a lot of research and make sure you're comfortable with it.

Otherwise, I might stick with what you got. Thanks for your call. We'll be right back. Hey, it's great to have you with us today on Faith and Finance Live. I'm Rob West, your host.

Here in our final segment, we have room for maybe one more question. 800-525-7000. Back to the phones we go to Tennessee. Hey, Gary, thanks for your call. Go right ahead. Rob, thanks for taking my call.

Your program and your newsletter are a great blessing. Oh, thank you. This is related to the first or second call that you had today regarding property being donated from parents before they deceased. I have a friend that has already done that, and my question is, can they deed it back to their parents and then do what you recommended with a transfer on death beneficiary deed going forward, or are they stuck with the cost basis of when it was given to them the first time?

No, you actually can do that. So essentially, they would give the property back to their parents, which would involve another gift tax form that would chip away at their annual lifetime exemption of $12 million. So they bequeath it or they gift it back to the parents and then the parents turn around and bequeath it to the child or children in their will, thereby providing the stepped up basis. So it essentially gives them a do over.

Never a bad idea to check with your CPA or real estate attorney for more information on this around this specific situation. But generally speaking, the concept that, you know, you're describing is right. Fantastic. I appreciate the information. You have a blessed day. All right, Gary, and thanks for your kind remarks about the program. I appreciate it very much.

1-800-525-7000. We've got room for one more question to Illinois. Hi, Kay.

Go ahead. Hi, I have a I think it's just a simple question. We're moving our investments. We have about 400,000. Part of it is annuity. We already have an annuity.

So there's several reasons we want to move this. And we're looking at two different firms. And one is offering what they what how they work as a with that amount, it would be four and a half or 5% load fund. And they showed us a chart going over I think it was about a 30 year period, how your money would grow faster and larger with about a one or one and a half percent yearly or annual fee. But we are 70 and 74.

We don't have 30 years. So I always thought you shouldn't shouldn't go with a load fee load fund. Yeah, I probably wouldn't. You know that not only is there a big upfront cost or expense to you, but there's less incentive for them to oversee it and actively manage it because they've already been paid. So I would prefer you to transfer that 400,000 to somebody who's going to charge you 100,000 or excuse me, 1% a year on the 400,000. But they're actively managing it, making decisions as necessary to, you know, modify or make adjustments in the portfolio as things change in the economy and the markets with your goals and objectives in mind, including your age and income needs and risk tolerance.

But that's my preferred approach for managing a portfolio of this size that that 1% annual fee versus this upfront load mutual fund. Okay, thank you very much. I just started. I really like the people.

I mean, everything everything seemed to be good, except I just didn't feel a good thought in my spirit about that. I remembered about load funds. And so I just wanted to check with you. I'm very happy to get your call. And I love your program. I've learned so much. Well, you're very sweet. Hey, listen. Yeah, God bless you. We appreciate you checking in with us. If we can help you further along the way.

Don't hesitate to reach out to Maywood, Illinois. Ricardo, go right ahead. Hello. How you doing, Chris? Good. This is Rob West.

How can I help you? Oh, Rob was I'm sorry. That's okay. I've talked to you a few times in the last couple of years. My wife and I, I'm 75.

She's 72. And we I'm in investment real estate. And I have a pretty substantial commission coming. It may take a while to get it, but it's going to be Oh, six, seven figures at any rate. I have about a half a minute, little over half a million dollars in equity in my two buildings that I own have no debt on them. And I'm, I'm wondering about selling them. And because one of my inherited tax on that one, but putting in most of it on this other money I got coming into a new day, I know I've heard you say many times, you're not too, you're not too favorable for annuities, but I know that right now my bank, Huntington, they're given like five and a quarter percent on annuity they have. And that's pretty decent. It's not, not great, but there's no risk.

Yes. And I, I'm just, I thought about taking the buildings and putting them in my sister's name because I don't know if we'll ever have to go into a nursing home or assisted living or independent living situation. But I do know that if you have over $4,800 in equity, I mean, in assets, you won't qualify and you can't, you can't, you have to five years, a lot of five years now, if I were to do this today, it would, they would prorate it if it was two years, three years around whatever, but after five years, and then it just totally relies on my Medicare and Medicaid, they won't touch any, any of my assets that I moved. So I don't know exactly what to do.

Yeah, well, to your point, you know, there are assets that are non countable or exempt from Medicaid, and that would include your personal belongings, household furnishings and automobile, irrevocable burial trusts, your primary income, and then IRAs and 401ks are exempt if they're in a payout status. I'm not a fan of what you're talking about. I think it's, you're, you're attempting to kind of find a loophole here.

And I realized there's only a five year look back on the, you know, the, the rules and regs. But at the same time, these really are not assets you're actually giving away, you're just kind of transferring them to get around that. What I would prefer to see you do Ricardo in this situation is take out a long term care insurance policy, so that if you needed assistance, you needed long term care and 70% of Americans 55 and older will, for some period of time, usually on average, a couple of years, you would have a policy that would kick in if you know, you weren't able to do a certain number of those activities of daily living, and pay out a daily benefit. And you could have an inflation rider on that and you know, and so forth. And, you know, it sounds like you have the assets to be able to pay for a policy like that. And that way, you know, you could keep everything in your name. But have this to kick in and cover those expenses in this season of life if you need them. Does that make sense?

Yeah, it does. And we've investigated the long term care insurance. It's not cheap. It's going to cost us about right now per month.

It's about a little over $500 for close to $600 each per month. That's what it would cost us. Yeah, yeah. And that's just because you're up in age. And so I get that. And so it's obviously more expensive than, you know, typically you buy it between ages 55 and 65. And you might spend, you know, at 55, you might spend a $1,500 a year as a 55 year old man and you know, $2,000 a year as a 55 year old woman. In this case, you're 75 years old, but it's just me and my own convictions. And that's all I can share with you. Ultimately, you need to pray through this and make your own decision.

I wouldn't be looking to move assets purely for the purpose of, you know, having them to be excluded or not counted toward Medicaid eligibility, even if you're able to get beyond that five year look back. I just wouldn't feel comfortable with that. Yeah, I'm a Christian. And I've talked to my pastor about it. And yeah, you're right.

You're right. And, and I'm not, you know, the Lord said, render unto what is Caesar, Caesar and what is God is God. So I get it.

Okay. Well, the good news is the Lord has blessed you, Ricardo. It sounds like you're sitting on quite a bit of assets. I think, you know, you've obviously got this massive commission check coming on a probably a commercial real estate sale that you were involved in. So the Lord has blessed you. And I think at this point, it's just a matter of being a good steward of what you have, managing it wisely, reducing debt, living within your means, saving appropriately for the future and trusting the Lord for the rest, because ultimately he's our provider, no one else.

And he can be trusted. So if I take this money and park about four or $500,000 in an annuity, that gives me 25, 40, $30,000 a year. I could, I could definitely, I don't spend that much in a year, but that would help me fall.

We have to go into a home, I guess. It would. Absolutely. And if that gives you the peace of mind to know that that's guaranteed, you certainly could do that. I guess my only caveat to that would just be to say, if you're willing to entrust it to an advisor that you have a good fit with who can generate the same kind of income for you, but allow you to maintain the principle so you could get to the money if you needed it for a major medical expense out of the lump sum principle. If you, if you outlive it, it doesn't go away like it would with the insurance product. You can actually leave the principle as an inheritance or give it to a ministry or charity. That would be the only thing to consider. But I do understand what you're saying about you would be taking some risk and you like the idea of knowing that you're transferring that risk to an insurance company in exchange for a very reasonable and appropriate rate of return.

And I, I can't fault you for that. The downside is just you lose access to the money without penalties and surrender charges. And ultimately you don't have the same asset to pass on. So I would just pray through it. Ultimately, you're the steward Ricardo, so it's between you and the Lord.

And if you'd feel most comfortable having an annuity that would provide a guaranteed income stream for the rest of your life that would cover these costs that I'd say, go for it. Otherwise you may want to connect with an advisor on our website faithfi.com. God bless you, my friend. Thanks for calling today. That's going to do it for us folks. Faith and finance live is a partnership between Moody radio and faith five. Thank you to Tahira, Jim. We're grateful for their service today. We'll be, uh, we'll see you next time. Bye bye.