Make S.M.A.R.T. Financial Resolutions

Today's version of Faith in Finance Live is prerecorded so our phone lines are not open. According to the Chamber of Commerce, the most popular New Year's resolutions include eating healthier, being more active, and managing money better. Unfortunately, statistics also show that most resolutions will bite the dust within a month.

Hi, I'm Rob West. If you've made a resolution to manage your money better this year, how can you be sure to keep it for the long haul? Today we'll help you avoid the pitfalls of resolution failure. Then we have some great questions lined up for you. But don't call in today because we're prerecorded.

This is Faith in Finance Live, biblical wisdom for your financial journey. Well, no matter when you make them, resolutions are hard to keep. Why is that? Well, statistics show the most common excuses for giving up on our resolutions are lack of willpower, forgetfulness, and plain old laziness. God knows we all struggle with these things from time to time, especially when the going gets tough. So if you're trying to get out of debt or stick to a new spending plan or save more cash, the going will get tough at some point. The key is to break old habits and develop new good habits.

Easier said than done, right? Part of the problem may be that you're making resolutions without a clear plan. Financial resolutions are almost always guaranteed to fail if you don't set up a budget.

Having a spending plan will put your resolutions on autopilot, and before you know it, you'll be developing those good financial habits. Another important element we sometimes forget when making life changes is accountability. Don't go it alone. Invite a friend to check in with you periodically to make sure you're staying on track. If you're trying to eat out less or save more each week, make it a shared family challenge. Don't give up when you make mistakes, and reward yourself when you reach important milestones in your plan. Share your victories and your struggles with others. Okay, what if you have a plan and still struggle to keep your resolutions?

It may be because you're trying to do it all in your own strength. We need to lean on the Lord. As Isaiah 40 verse 28 says, that's where the power is. The Lord is the everlasting God, the Creator of the ends of the earth. He does not faint or grow weary.

His understanding is unsearchable. He gives power to the faint, and to Him who has no might, He increases strength. So, here's a new way to approach your New Year's resolutions. First, pray. Ask God to show you His will for your life. Acknowledge His sovereignty in your life and submit all your plans to His direction. If you're married, pray together about your finances and ask the Lord to give you unity in Christ. As with any goals, your financial resolutions need to be SMART.

That's S for specific, M for measurable, A for achievable, R for realistic, and T for timely. Let's start with specific. The more detailed and clear your plans are, the easier they'll be to follow. That's where a spending plan comes in. By the way, we can help you with that.

Just download the FaithFi app to get started. A SMART financial plan will also be measurable. Your detailed budget will allow you to keep track of where your money's going. You'll be able to measure your progress as you repay your debts and save for the future.

Success breeds success. Third, your financial plan should be achievable. Don't expect to pay off all your debt at once or build up your emergency fund in just a couple of months.

Be patient with the process and give yourself time to see results. Smaller steps will be easier to manage, and you won't get discouraged. You also want your financial goals to be realistic. It's okay to dream, but your spending plan needs to reflect your real income and your real expenses. Be careful not to use debt to pay for things you really can't afford now. Finally, your financial plans need to be timely. If you're saving for something or paying down debt, give yourself a reasonable timeline and stick to it. Set up your spending plan and track it weekly or even daily so you always know where you stand.

Make adjustments as needed and keep going. With God's help and a specific, measurable, achievable, realistic, and timely financial plan, you can avoid resolution failure this year. By the way, if you need help with a spending plan or getting out of debt or saving for the future, I hope you'll download the Faithfi app from your app store. You can also visit us online at faithfi.com. That's faithfi.com. Be sure to join our online community and get your questions answered or email your questions to askrob at faithfi.com. We hope to see you in the app. Again, it's faithfi.com.

Just click app. All right, we're going to head to a break, but let me remind you, we're out of the studio today. Our team is not here, so don't call in, but much more to come just around the corner on Faith and Finance Live. Stick around. You're listening to Faith and Finance Live. This program is prerecorded, so we're not available to answer your calls, but you can email us your questions at askrob at faithfi.com. Let's dive in today.

We're going to begin in Pennsylvania with Wesley. Go ahead, sir. Hi, Rob.

Thank you for taking my call. I am an independent, self-published author. I'm a retired teacher, and after I retired, I've published four novels. And in this year, I've spent over $10,000 publishing, marketing. And so my question is, how do I go about claiming these expenses when I file my 2023 tax return? My wife thinks I need to get an LLC, but I didn't know if there was another way, so I thought I'd call the experts.

Very good. Well, you're right. Your tax-deductible business expenses would include anything you spent on marketing, the books, the artists, publishing packages, other expenses. So if you're a sole proprietor, basically what you would do is you'd list your income and your expenses on Schedule C of your 1040, and then you'd be able to deduct those. Now, the IRS safe harbor rule is typically that if you've turned a profit in three out of the last five years, then the IRS will presume that you're engaged in it for a profit, not as a hobby.

And so you're going to have to just factor that in at some point here. But basically, you have the ability to deduct those expenses against any income you're earning. And you're right, it may make sense just for protection, to separate the business from you personally and for a few other reasons to form that LLC. It's not critical, but it's probably time if you're thinking about this continuing to be a part of what you're working on for you to get things in order, both legally and from a tax standpoint. So I think, you know, getting every deduction available to you now is important. Do you have a CPA that you've worked with in the past or an accountant?

No, I'm not at this time. Like I talked, I never really had a lot of money. And then since I'm tired, I don't have a lot of money. So I've never had a CPA. Okay, yeah, this is the time to do it just to make sure you get the book set up properly. I'd love for you to, you know, have a good delineation between what's personal and what's business so that you can truly deduct every expense related to the business and it doesn't get mixed. So you'd have a challenge defending that to the IRS. And so having that separate set of books and clearly, you know, having business expenses and personal expenses, for instance, I'd perhaps use a different checking account and you could, you know, use a business credit card and just keep everything separate. And that way, it's a little easier to document. But I think this is probably the time, Wesley, for you to go and get that CPA, not only get those books set up to make sure you're filing the taxes properly and taking advantage of every deduction, including, let's say, a portion of your home that you're using, you know, specifically for the business, you know, maybe you have a place where you do your writing, that kind of thing. You want to take be able to take full advantage of any deductions there. And then at that time, you can also talk about whether it makes sense to put a legal structure in place for a corporation, an LLC or a subject or as one of those. Thank you, Rob, that that opens up more doors for me to look into. So I greatly appreciate what you guys are doing there. Faith and finance.

Absolutely. Wesley, listen, if you need a suggestion for a CPA, if you don't have one, I'd reach out to a certified kingdom advisor there in Pennsylvania. Just go to our website, faithfi.com. That's faithfi.com.

Click find to CKA. And any one of those certified kingdom advisors in your area could refer you to a godly CPA who can help you get all of this set up. Listen, all the best to you. And we appreciate you calling today. Check in with us anytime if you have other questions. Thanks for your call today. Let's head to Georgia. Hi, Clarence. Go ahead, sir. It's me again. I'm glad you called.

Yeah. Listen, guys have been good to me. Back in February, I bought my first new car ever. Bought a new Subaru.

And I love it. But I got it financed at 8% interest. And I'm periodically getting offers through emails and various sources wanting to refinance it at a lower rate.

And then I listen to you basically every day that I can, which is almost every day. And yeah, I hear you talk about a recession coming and possibly the interest rates going down more. What would be your advice on getting it refinanced? Should I?

Should I wait? Yeah, you know, you're really going to want to wait until interest rates drop before it's going to be cost effective for you to refinance. At this point, rates have been continuing to climb.

And so you'll likely end up with a rate that's, you know, even higher than what you have right now. So you're going to want to wait that out. We're probably looking not even 2024. It's probably going to be into 2025 before we see enough of a reduction. I mean, it remains to be seen.

So we'll watch it next year. But you're going to need to be able to save at least a point and a half, preferably two percentage points before it will make sense for you to spend the money to actually refinance this. But when the time comes and you see rates have dropped, as long as you're not upside down on that car, you got some equity in it, you know, there is a good case for you to go ahead and refinance. Did you have a good credit score, Clarence, when you got this current loan? Yeah, it's about 740. It's down 704 right now.

I don't understand why it dropped. But, you know, two years ago, I had a zero credit score. Oh, wow.

Okay. And God, like I said, God's really been good to me. I started a checking account, you know, put up the money and not checking but a credit card, put up the money and everything.

Bought a lawnmower, had a co-signer. And, you know, it just God's been good. Yes, he sure has.

Well, it sounds like it. I appreciate your testimony of his faithfulness in your life. You know, it's never a bad idea to, you know, check rates and always be watching again, as long as there's no expenses attached to that or very low. When you have the option to get a lower rate, I'd say take it, especially if your credit score was lower and it's been on the rise. I think the key is to make sure you have positive equity in that car.

Hopefully you do. And did you put something down when you bought it? Yeah, I put $5,000 down on it. Okay, great. The offers that I'm getting now says I can reduce the payment now by $120 a month. Okay. But what about that interest rate? Because what I'm most concerned is the total amount of interest you pay over the life of the loan. Yeah.

Yeah. So unless you really need that car payment to come down, because you can't afford it, then I would love for you to keep that payment right where it is. Let's send as much as we can each month. And so really the key is, you know, you want to look for an opportunity to reduce that interest rate. But even if they let you pay something less and, you know, I suspect your loan will be lower, especially if now it's a smaller balance because you've been paying on it. And if you were able to lower the interest rate, I'd love for you to continue to send the same payment you're sending right now, which is going to help you pay that off even quicker. And then if you keep making that payment to a savings account, you know, you'll have something for the next automobile once you kind of run this one into the ground. So it's a good idea. Clarence, I think you're on the right track.

The key is just wait until you can get that lower rate and then let's let's try to keep that same monthly payment, even if you're sending a little bit extra than is required. Hey, thanks for being a faithful listener to the program, sir. And we appreciate you calling today. God bless you.

We're going to head to break here in just a moment. But, you know, we hear from a lot of folks who are victims of identity theft. That's right. The Federal Trade Commission estimates that nine million Americans have their identity stolen each year, including children, interestingly. One out of every 10 of us has been directly affected by identity fraud. If you're an active social media user, your chance of having your I.D.

stolen is actually 30 percent higher. So what do you do about that? How do you stay safe online?

Well, I'm going to give you some strategies that fit into three categories, deter, detect and defend and help you stay safe as you navigate the Web and conduct business online. Now, again, a reminder, we're not here today, but more of your questions that we lined up after the break. So glad to have you with us today on Faith and Finance Live.

Our team is away today, so don't call in. But we lined up some great questions in advance and we'll be going to those here in just a moment. Let me also remind you that the advice that I give each day on this program is general in nature. We offer principles and ideas that apply at a high level.

They are not personalized. So that's why you should always seek professional financial advice. And if you'd like to find a professional who shares your values, we, of course, here at Faith and Finance Live recommend the Certified Kingdom Advisor designation. These are men and women who've met high standards and they've been trained to bring a biblical worldview of financial decision making.

You can find one at faithfi.com. All right, before we head back to the phones, I mentioned that identity theft is on the rise. Nine million plus Americans have their identities stolen each year.

So what can you do about it? Well, three, I think, categories of ways you can defend yourself and protect your identity fall into these categories of deterring, detecting and defending. Let's talk about how you deter identity theft. First, protect your personal information as if it were cash. I mean, really just be vigilant in terms of protecting your personal information.

So don't carry your Social Security card. I would memorize the number and leave the card at home. Don't give your personal information to anyone unless you initiate the contact. And that would include through an email.

Even if you see the logo at the top of the email from a company that you do business with, they may be impersonating both in terms of the name on the sender as well as the the logo on the email. So don't ever click a link and type in your personal information unless you initiate that contact. I would say never let doctors or other providers use your Social Security number as an account number.

Ask for an alternate number and then, of course, shred your personal mail before throwing it away. And most folks recommend that cross cutter, which is actually going to cut it two ways. And it makes it certainly a lot safer. The second category is detecting. And how do you detect? Well, the key opportunity here is related to your credit report. So you're going to want to check that regularly at annual credit report dot com. The federal law allows you to get that for credit report free from the three reporting companies, Experian, Equifax and TransUnion. And again, that's annual credit report dot com.

So make sure you're checking that regularly. You're going to want to look for charged accounts that you didn't open because obviously those were open fraudulently in your name. You'll want to challenge those and then be aware that your identity has been compromised. You won't know that somebody stealing your identity in most cases unless you check your credit report. And that's why it's really important that you do so.

And then finally, defend. Well, if you lose your wallet or personal information is stolen or you detect fraud on your credit report, you need to act immediately. I would call the local police to report the crime, get a copy of that report, since this will help you prove that the crime has actually happened. You'll, of course, want to cancel credit cards and close accounts if necessary. You'll want to call the credit agencies and add a fraud alert on your credit bureau files with TransUnion, Equifax and Experian. You'll want to freeze your credit as well, adding that PIN number, which you can do whether your identity has been compromised or not.

That's going to put a four digit PIN number to access your credit file, which will stop fraudsters in their tracks if they try to impersonate you and open an account in your name. And then you'll want to follow up with letters to your affected creditors asking for resolution in writing. You can find a lot more information online and how to deal with it at FTC dot gov. That's the Federal Trade Commission, FTC dot gov slash ID theft.

Or you can call 877 ID theft. So listen, folks, we want you to be able to defend yourself from identity theft. And the most important thing is to protect your Social Security number and then stay on top of those credit reports. We don't want to be you to be one of those nine million folks that face this.

It is a huge headache and it can be a lot worse than even that if we don't stay on top of it. So hopefully that gives you some some good best practices as it relates to ID theft. Now, beyond that, what I would also say is don't conduct financial transactions or log into sensitive accounts from public Wi-Fi. So in this case, we would be talking about not going to a coffee shop and logging into your bank. Do that at home.

And then one other thing, make sure you're changing those passwords regularly and use a pretty secure password that has at least 12 characters. All right. Let's head back to the phones. Let's head to South Carolina. Hi, Amy. How can I help you? Hi. I'm wondering if paying a health share, paying your monthly health share to go to another individual can be paid out of a health savings account legitimately.

It's a great question, Amy. Unfortunately, no, you cannot use your health savings account to make the payments tax free payments to a medical sharing plan. So you can still use your HSA for qualified expenses. So anything that qualifies as a medically related expense and you could find the list of those online.

But those sharing payments to, you know, for instance, Christian Health Care Ministries or one of the other ones cannot come out of an HSA. OK. All right. That's what I needed. OK, very good, Amy.

Appreciate your call today. I am a big fan of these health cost sharing ministries. Our friends at Christian Health Care Ministries have been serving our listeners for a long, long time. And especially with the medical expenses on the rise, it is becoming more and more challenging to have a solution to be able to cover the high cost of medical expenses. And an alternative to health insurance is health cost sharing as Christians share one another's medical bills through one of these ministries. CHM is the oldest and biggest. They've shared nearly 10 billion dollars with a B to their members over the life of the ministry.

And might be worth you checking out today, especially if you've got a kind of a squeeze on that budget. You're trying to make everything balance. You can learn more at CHMinistries.org. Well, folks, before we head to this break, let me remind you, if you haven't checked out faithfi.com, that's faithfi.com.

I'd love for you to do that. You'll find the best content in biblical finance there for you to grow in your understanding of managing money God's way. You'll find our community and the money management system.

It's all there at faithfi.com. Now, again, a reminder, we're not here today, but more of your questions that we lined up after the break. This is Faith in Finance Live with Rob West. Hey, if you hear a phone number mentioned today, please ignore that number and don't call us because today's broadcast was previously recorded. But we think the upcoming information will help you and make you a wise steward of what God's given you.

So please stay tuned. Let's head to Kentucky. Hi, David. Thanks for calling.

Go ahead. Rob, I'm so glad I got through. Hey, I'm retired and I've got health insurance through Blue Cross Blue Shield. I've been on there for 15 years, I guess. But now the rates have gone up so drastically for my health insurance with Blue Cross and that type of thing. And my friend told me about Aetna. They've got an Advantage Plus plan. They call it a hybrid or advanced Medicare plan. It's called Advantage PPO. And it sounds too good to be true because I tell you what, there's no deductible. You don't need referrals and you get a big rebate on your Medicare B. Do you know anything about this? Is Aetna the only one that does this hybrid Advantage plan?

Yeah, I'm not familiar with that one specifically. And so you certainly need to do your homework. A lot of folks will find the downside to the Advantage plan is that they have a limited number of doctors on the plan. So it restricts you, which can limit your care options. They can change the list of covered doctors. If you need a lot of medical care, it could result in high costs because you don't have the same type of coverage. And you, in many cases, have to get pre-approval.

Now, if some of those things have been taken away by this particular product, that would obviously change things. The Medigap policies are generally what we recommend just because even though it results in more out-of-pocket costs, you can essentially use it with any doctor and make sure you get the coverage you need. Now, you still want to check with your doctors to make sure they accept the exact insurance and Medigap policy you're considering.

But the coverage is far more expansive. And it also covers healthcare needs when you're traveling abroad and it may help with long-term care. And it eliminates most of your Parts A and B out-of-pocket costs. So especially if you are going to need some more skilled care and that type of thing, it does become certainly more helpful there. So I think you just want to explore this in a bit more detail and make sure that your doctors are on the plan, understand what your out-of-pocket costs would be, especially if you have needs beyond just routine care. But the specifics of this policy I wouldn't be able to weigh in on, unfortunately.

Okay, I'm with you. The only two things that I failed to mention is they said you can go to any doctor that takes Medicare. There's no network other than your doctor has to be accepting Medicare and you don't need any referrals.

So I can go see my ophthalmologist or my pediatrician without having to go back to the primary. So it just really sounds like too good to be true. But I guess you just have to dig into it like you say.

Yeah, that's right. And I think you can find some good reviews online. For instance, I know NerdWallet, which is kind of a funny name but it's a great website for this kind of thing. NerdWallet.com, they do reviews on all of these plans so you'd be able to go there and look at the pros and cons of what folks are saying who have these types of plans. So I'd encourage you to do that.

They'll talk about the premiums, they'll talk about the satisfaction of the customers that are using it, how the availability is, those types of things. So I'd probably do a little bit more digging online before you make your final decision. Okay, thank you so much, Rob. All right, David. I enjoyed listening to you. Thank you, sir. We appreciate you being on today. Appreciate your call. Let's head back to the phones to South Carolina. Shara, thank you for calling. Go ahead.

Hi. So I have a question that I want to start an event venue and I need startup funds for that. And I'm thinking is it best for me to get the funds from my 401K or shall I go to a credit union or a regular bank when I'm considering the interest rate and paying back the life of the loan or what do you suggest? Yeah. Tell me what it is you're doing. Are you buying a piece of property or you just have other startup costs? So I'm looking at some buildings that would have to be reconstructed or remodeled to my taste and style that I want the venue to be. And so I'll be leasing it out. And right now what I'm looking at is probably about 2,000 square footage and lease and rent is going to roughly around maybe $2,500 a month. So I have to work out those details later, but just to get the money to kind of start it up, I just kind of want to know what's the best route to go.

Shall I withdraw it from 401K or? Yeah. No, I certainly understand that. So you don't own the property.

You'd be leasing it and then you're having to pay for the build out. Is that right? Correct. Okay. And how much do you think you're going to need for this? I'm thinking maybe about $50,000 to at least pay for six months of the rent and do any minor remodeling of the building. Okay.

Yeah, very good. Yeah, I would encourage you not to go to the 401K. If you separated from your employer for any reason, that would all become a taxable event. And if you're under 59 and a half, you'd have a 10% penalty on top of the taxable event. So that'd be pretty expensive money.

Plus, the market's obviously down. So I'd love for that money to stay in there for the purpose you put it in for so that it can continue to grow. And as soon as you borrow it, although the interest is being paid to yourself, the money's not in there to recover with the market and grow.

And we've got this potential downside of this all being a taxable event if for some reason you separated from your employer. So what I'd probably prefer you do is look at like an SBA loan, Small Business Administration loan, something like that that you could get through your local bank. The challenge is it's going to be also expensive money because a lot of times these loans will be at prime plus three maybe or more. So prime right now is eight and a half, so you could be looking at somewhere between 11 and a half and as much as 15% on these rates.

But this is what it's for. And so the government backstops these banks, and these are for small businesses to cover startup costs, working capital, expansion, real estate purposes, that type of thing. And when you apply for a loan through one of the lending institutions like a bank or a credit union, the lender then applies to the SBA for a loan guarantee, which means if you default on it, the government pays the lender the guaranteed amount. But they generally require an unconditional personal guarantee from everyone with at least 20% in the company. So this means that you and your personal assets are on the hook for the payment if your business can't make them. But it reduces the risk for the lender because of that government backstop. But that would be generally what I would be looking for in the amount that you're talking about, which would allow you to get one of the SBA express loans, which can happen quicker, up to half a million dollars. So before I pulled out of the 401k or certainly consider borrowing from your house or something like that, I'd probably talk to your bank about that.

And see if that would be an option. I think the other big idea here, Shara, is just make sure you've got the working capital you need because it always takes longer and it's more expensive than we expect. Make sure you have a good, solid business plan and you've done your homework. But I'm excited for you. I'm sure this will be an exciting new business for you.

The key is just to make sure you're well planned. Thanks for your call today. We'll be right back. I'm so thankful you've tuned in to Faith and Finance live here on Moody Radio. Just a quick reminder, we're away from the studio today with our families, so don't call in.

But we did line up some great questions in advance. I know you'll enjoy them. Hey, before we head back to the phones, let me just remind you here as we approach the end of the year, this is a critical time for us to hear from you with your financial support. As a listener supported ministry, we can't equip God's people to be wise and faithful stewards without you. So if you'd consider a gift before December 31st of any amount, it would go a long way to helping us reach our $250,000 listener support goal by 12-31. So just head to faithfi.com and click Give. That's faithfi.com and click Give.

You can see the status, our progress toward our year-end goal, and make your gift right there. By the way, for our previous caller, if you're thinking about an SBA loan, there's a couple of ways you can go about that. You can look at just contacting your bank directly. You can go to sba.gov or NerdWallet, actually. And I mentioned them earlier, a great resource to find reviews on banking partners and lending institutions, compare rates for everything from credit cards to mortgages. But they also have an option to apply free for an SBA loan, and they tap into a network of lenders to get you the most competitive rates. It's a great resource. I know billions of dollars have been extended through their service. It's free, and it doesn't put a hard inquiry on your credit file, so it allows you to basically do some checking on what the options would be for you without affecting your credit score and without costing anything.

So just do a Google search or an internet search for SBA loan NerdWallet, and you'll see their application for an SBA loan, which again, there is no cost for them. Hope that's helpful. Well, one more thing I want to mention before we head back to the phones. If you don't have a spending plan, maybe you've tried and it's failed, or it's just been a long time since you used a budget, but you know now is the time for it because expenses are so high. I can't believe what I spent at the grocery store last night for just a few items. Let me recommend the FaithFi app. We'd love to help you set up that spending plan, use the digital envelope system to manage your cash flow and stay on budget. The great thing is you and your spouse can log in and look at it any time of the day, see what's left in each digital envelope, like eating out or entertainment or clothing, and when money's gone, it's gone.

In the next paycheck, it'll automatically refund those envelopes, and it'll help you to stay the course and make sure you're giving every dollar a job. So check it out. Download it today. It's the FaithFi app. You'll find it on our website, faithfi.com.

Just click app. All right, back to the phones we go. Here in the final segment, we'll take as many calls as we can. Let's go to North Carolina.

Hi, Fred. Go ahead, sir. Listen to your show quite frequently, and I picked up some good pointers financially, so I appreciate what you do.

Well, thank you. The question I have is my car was involved in an accident last week, and they were going to repair it, but then the insurance company sent me a notice saying no, they were just going to total it and they were going to pay me a settlement out of it. But I also understand I have an option. I'd like to keep the car, but the money that I'm going to get out of it is going to be about a $2,000 difference. They're offering me 34 total, just totaling the car out and them keeping it, but I only get like 1,200 if I'd like to keep it and repair it or do whatever myself. And I'm not sure. It seemed to be yays and nays both ways, but I'm confused.

Yeah, very good. Well, a car is totaled when the damage exceeds generally 65 to 70% of the market value, and they calculate that by looking at the model and the year, the mileage and condition, and then the damage for the car in your area and the resale value of the parts. So you can keep the car after being totaled where the insurance or the insurer will pay you the car's cash value minus any deductible due in the amount that the car would have been sold for to a salvage yard or at the auction. So I think the key is negotiating the highest payout or settlement for that total car's vehicle or total car's value. Have you told them that that's your intention and they've given you a final offer? Is that right? Yeah, they've given me a final offer.

I tried to get them to come up a little bit, but they wouldn't. They said everything is based on the values of the car and depreciation and the damage. I said it's pretty cut and dry and there's no room for negotiation is what they told me. What they gave me was basically the most I can get for it.

Yeah. Well, if you can obviously get some use out of it, even for a year, I think paying that $800 difference would probably be worth it. But you should have the option, especially if you can justify the difference and that might be your next step is to go back and look for the opportunity to convince them that they should be paying more. You'd need to show them evidence to prove that your car is worth more than they originally estimated and any upgrades you made to the car could increase its value. So you can try to negotiate out that settlement. It won't be easy to convince them to pay more, but it's possible.

So you would need to try to gather that evidence that you have. If you do, if you don't, then I think it's just a matter of trying to decide, is it better to take the amount that they'll give you or move on or do you try to continue to drive and repair it? What would it take to actually get it repaired? The repair shop estimated at first they were saying $3,400 to repair it, but then when they got it in the shop and started tearing apart and looking at it, they bunged it up to like $4,100. And that's when the insurance company came back and said, no, that's a no go.

It's a deal breaker. The else I'm looking at is the car, even though it was in a wreck, it's still very drivable. The main problem is mostly cosmetic damages on it.

The passenger door won't quite open all the way, but you can still open it up to get in and out. That's the main problem from the wreck. It still drives good.

There's no problems with that. But I had trouble last month trying to get it to pass the safety inspection because of the emission control. The safety features were great. It's just the emission control. And they're telling me it may cost $1,000 to get that fixed.

Yeah. Well, I think, again, going back to this option that you have, if they decide to total it, they will pay you the cash value of the vehicle minus your deductible and the amount that your car would have been sold for at the salvage yard. And then it'll be up to you to arrange those repairs. So perhaps that's what you need to try to solve for is the opportunity to get as much as you can out of it so that you can get it to be able to pass inspection and then you could keep driving it from here. So I'd probably go back and see if you can dig up online any justification for getting that number up. Maybe get a second opinion from another repair shop and see if you can get them to come out of pocket a little bit more.

Maybe even meet you in the middle by challenging that settlement offer. But I certainly understand where you're coming from here, Fred, and wish you the best in working this out with your insurance company. Thanks for being on the program today, sir. May the Lord bless you. Let's go to Mississippi.

Hi, Beth. Go ahead. Yes. I retired about three years ago and I had a statement and I was wondering what I had it transferred from from where I worked to my bank. And I'm wondering, is there in a way that I can still add money to that? Yes.

Yeah. So did it was it in a 401k or a 403b, Beth, before you moved it to the bank? No, it was just in a retirement plan. I can't remember the name of it right now, but it was a retirement plan that I had on my job. OK. Yeah, it's probably a 401k.

But regardless, did you roll it? It was not a 401k. OK, but it was probably put in pre-tax, whatever it was. Did it come out of your paycheck? Yes. It came out of my paycheck. It was 50-50.

I paid so much and my job paid so much. Yeah. OK, very good. And then did you roll it? I know you sent it to the bank, but did it go into an IRA, an Individual Retirement Account? Yes. I rolled it over into an IRA from where it was. Right.

OK. Yeah. So you can absolutely add money to it at this point. You'd be able to for this calendar year, 2023, and actually for any time before you file your 2023 taxes next year, you can make a contribution to that up to $6,500.

If you're over the age of 70, you can put in up to $7,000 for this year and then you'd be able to turn around and fund it again next year. So, yes, you can add money to it. So what do I need to tell my bank? I just need to tell them I want to start adding money to it?

Yes, ma'am. You just tell them you want to make a contribution and they'll tell you where to send the trek to deposit the money. OK. Because I was told that you couldn't add any. Someone was telling me that you could not add any money to it after you retired. No, that's not true. As long as you have earned income, do you still have earned income? No, I do not.

I just hire men. OK. I didn't realize that.

My apologies. No, so that would change things. In order to be able to contribute to an IRA, you have to have earned income. So that would be income from employment, wages, salaries, tips, other taxable employee compensation. So you would only be able to put in up to seventy five hundred over the age of 50, but only as much as earned income as you have. If you don't have earned income for 2023, then you would not be able to make a contribution. So contributions are permitted after you roll it out of that retirement plan to an IRA, but only to the extent you have earned income to to go along with it.

So unfortunately, I think at this point, if you don't have earned income, it's just a matter of getting that position to grow at a reasonable rate from this point forward. Thanks for your call today, Beth. May the Lord bless you. Well, that's going to do it for us today. Faith and Finance Live is a partnership between Moody Radio and Faith Five. I hope you have a great rest of your day and we'll see you next time on Faith and Finance Live.