8 Habits of Wise Women Managing Money

In Matthew 6 21, Jesus says for where your treasure is there your heart will be also.

Hi, I'm Rob West. That teaching is true for everyone, and yet men and women have different perspectives on money. So how do wise women manage the resources God entrusts to them? Miriam Neff is here to talk about that today, and then it's on to your calls. 1-800-525-7000.

That's 800-525-7000. This is Faith and Finance Live, biblical wisdom for your financial decisions. Well, it's indeed a pleasure to have Miriam Neff back on the program. She's the founder and president of Widow Connection, a ministry dedicated to helping women overcome and thrive after the loss of a husband.

She's also co-author with her daughter Valerie Neff Hogan of Wise Women Managing Money. Miriam, a delight to have you with us today. It's good to be with you, Rob. What you're doing is so important. First of all, it's biblical wisdom, so it's sound. But the other thing is having the Q&A, people get to call in and address specific things. I mean, not only is it priceless, you pay big bucks to get this kind of really expert advice. Well, thank you.

You're one of our biggest fans, and we're grateful because we think it's so highly of you and Valerie and the work you're doing at Widow Connection, so I always look forward to having you on the program. You know, Miriam, your book is a great resource for women in general, but especially for those who may suddenly find themselves having to manage the household finances. And you've identified eight habits of wise women who've been thrust into that role. Now, these are habits that anyone can establish if they're willing to put in the time, right?

Oh, that's right. And just a little statistics. Most women in the United States are single. There are also a lot of single moms, widows, but every woman should know and understand finances. We oversee 51% of the wealth in the United States now, and that is growing, and we're talking about women here. So we are capable for sure, because God has created us. Whether He's entrusted us with a large amount or small, He has entrusted us, which means He's going to help us. The key, and it's most important, know your why, because it's all God's. I love that.

Know your why. I think that's great advice, and you're exactly right about this growing amount of wealth in the hands of women. We know that as this somewhere between $30 and $60 trillion changes hands between now and 2030, well, a large portion of that will be in the hands of women. We hear from them all the time, as you know, Miriam, on the broadcast, so I'm delighted we can give them some help and encouragement today.

I know we've got a lot of ground to cover, so let's dive in. What's the first habit of wise women managing money? Well, we acknowledge that all we have is God's on loan to us to steward. So some people listening may say, well, I have a 401k or I have an IRA. Is that what we're talking about, those investments? Well, the word is all we have. So in other words, our income, are we spending it wisely or is it a bunch of it going to credit card debt?

What about housing? Are we taking care of it, keeping it in good repair, car or transportation, making wise choices, even wardrobe? So we think of it's all God's, but let's realize that word all means everything, every bit of it. So it's the big stuff and the small stuff and everything in between.

You're exactly right. And that leads us to number two, which is around taking responsibility to know our finances. Why is that important for wise women managing money? Well, we pay attention to, you know, things that need repair. We pay attention to the things that we're lacking.

We need to get. We should spend more time than ever on knowing our finances. And I simplify the eight to four, know it, own it, like it, or change it. We write it down and Bob and I did paper and pencil.

My family members do spreadsheets in their marriages, but you keep a record of it. And we can't be distracted by saying, Oh, my teenagers need too much stuff. Or my parents didn't teach us this. It is our responsibility. We're going to stand before God alone. And the most important topic is love. How did we love others? But the second most important topic in the Bible is our stuff.

Yes, that's exactly right. Well, these are two key points to get us started on that second one around taking responsibility for our finances. You don't have to go it alone. We're here to help you at faith and finance. There's Widow Connection, your local church and so many other resources.

So get some help along the way. We're joined today by Miriam Neff. She's the founder and president of Widow Connection. We're talking about the eight habits of wise women managing money back with much more just around the corner.

Stick around. I'm so grateful to have you with us today on faith and finance live. It's a pleasure to welcome back to the broadcast today Miriam Neff. She's a frequent contributor here. She's the founder and president of Widow Connection, a ministry dedicated to helping women overcome and thrive after the loss of a husband. She's also the co-author with her daughter, Valerie Neff Hogan, of Wise Women Managing Money. And today we're talking about the eight habits of wise women who've been thrust into this role of managing money. As Miriam said just before the break, more than 50% of wealth in the hands of women today, and that number is clearly growing. She said habit number one is that we have to acknowledge all we have is God's on loan to us as a steward.

That's a high calling. And then secondly, it's important for wise women managing money to take responsibility for knowing their finances, even if they've not spent a lot of time in that area and they can get help. Miriam, what's the next habit of wise women managing money? The next one is we create a spending plan based on our income and values. And I just want to say, Rob, this is hard because our culture gets it backwards. They, so if you want it, own it, you want that bigger house stretch, get as big a mortgage as you can hope your income will go up to cover it and your bills will not go up. And just, if you want those extra items of clothing, put it on the credit card.

Maybe you'll be able to pay for it later. That's what the culture says. And that's based on comparisons and wanting more. Biblically, our contentment is in the Lord. That's where our value is. That's, we believe it's all His and we want to do it well.

So we do not let the culture push us to make foolish choices. That's so helpful because we've got to start with our income. But what's even bigger than that is the second piece that you talked about, and that is our values. What does it look like for wise women managing money to take a values inventory, Miriam, so that they know their values and they can apply that to their investment decisions?

Well, we have a chart for that in our book and we have a chart that shows what recommendations there are for percentages that go to housing and all of that kind of thing. But as Christ followers, the first big piece of that pie to go out is to give to God. It's not really giving to Him. It's just acknowledging and dedicating to biblical future.

I mean, eternity is forever. That's where we want to invest first. So that's where the values come in. So it's a good chart for you to look at in our book.

Yeah, very good. And that's well said. All right, this next habit speaks to the quote that Larry Burkett would often say, and that is that every spending decision is a spiritual decision. What do you want to tell us about our hearts related to money management? Well, you started with the scripture, where your treasure is, there will your heart be. What do you look at first thing in the morning?

Do you look at where the markets are? Do you look at Facebook or is our face in the Bible first? And if you want to know the status of one's heart, look at the calendar, the checkbook, the credit card.

It's staring right at us because that's our behavior. And that's where earlier I said, know it, own it, like it, or change it. If you don't like what's staring back at you, if you say, God isn't pleased with this, this has me burning up money with credit card debt, then you change it. And I'm not saying if it's big steps you need to take, you start out successfully right out of the gate, but you start with little steps and you get stewarding it responsibly. God notices and then he helps us.

When he sees you put your foot in the water, he knows how to part the waters. That is so good and so helpful. All right, I think we're up to habit number five, Miriam, and this one has to do with excuses. What do you have for us here?

Well, you can say, well, my spouse is a big spender or my teenagers need to have the same kind of smartphones as their friends. Or, oh, I wasn't feeling so good. I was discouraged, so I'm going to do a little retail therapy.

Hello? That's called retail sickness. Yes. Making excuses or saying it's somebody else or, I mean, it's really hard. And I'm talking to single parents and people who have some real struggles. It's really hard not to be pushed by emotion or fear like the Matthew 25 story that got one talent.

He was captivated by fear and didn't earn anything with that one talent. So getting the emotions in line, we have a chapter on that, but we want to make sure that we own it ourselves. It's about what we're doing with what's entrusted to us.

Yes, that's exactly right. And that really leads right into this sixth wise habit, which has to do with taking personal responsibility. Tell us about that. Well, here's some temptations. As a parent, we may decide, oh, we need to kind of hand out stuff to our kids, or especially in divorce situations to kind of earn favor of our kids.

Handing out to keep a relationship or hoarding something to fill a void. These are financial actions that we have to take personal responsibility. We can't say, well, our circumstances made us do that. No, we're Christ followers.

We know our why. We want to honor him, and he blesses us. And again, I can just promise anyone listening, when you take that first small step to say, God, I want to honor you with my finances, he steps in and does some amazing things.

Yes, he sure does. And I'm so glad you have this next one on the list of habits, because this is not about setting it and forgetting it, is it? Oh, absolutely not. Think of what's happening today with inflation. If you had a budget a year ago, today, it would be busted.

And I'm saying that from my location, but it's happening all over our country. And one of the principles is you have three to six months savings set aside available for emergencies. Well, any more, they say the only things you can count on are death and taxes. Well, now I'm thinking you can also count on change. And you can also count on something happening.

The car that breaks down the thermostat that doesn't work. I mean, these things are guaranteed to happen. We just don't know when. So that's why we have to keep revisiting.

With inflation, you pare down things so that you make sure you have that three to six month reserve. It's just vital. Yes, it sure is. Well, we've saved the best one for last.

We have about a minute left. I know this one is really near and dear to your heart. And it has to do with investing for kingdom purposes.

Tell us about the eighth habit. Well, I just have to say for me, it's personal. I invest in global projects and poor areas and widows learn available skill, and then they know that they were able to learn that because God loved this one woman. So that's an investment in eternity. Now, does everybody do it that way? No, and I'm not saying I'm a great example, but pick that thing that you know is going to be a blessing for kingdom purposes.

And that's the thing that makes it worth buying your sweats at Walmarts or at the resale shop. Have some accountability partners, not that you tell them all the details, but tell them your goals and help them encourage them. Our book has questions and discussion at the end of each chapter. Have a few friends meet together.

Hold each other accountable so you're not feeling you're kind of alone in the struggle. This is so good. We've of course just scratched the surface. So, folks, you're going to have to pick up a copy of this book because there's much more behind all of these. It's called Wise Women Managing Money, and it's from Miriam Neff and Valerie Neff-Hogan. Miriam, thanks for stopping by. We're going to have you back real soon. Thanks, Rob. Sure enjoyed it. God bless you.

God bless you as well. That's Miriam Neff, founder and president of Widow Connection. Your calls are next, 800-525-7000.

That's 800-525-7000. We'll be right back with much more. Stick around. The opinions offered during this program represent the personal or professional opinions of the participants given for informational purposes only.

Any information provided is not intended to replace advice from a financial, medical, legal, or other professional who understands your specific situation. Great to have you with us today on Faith and Finance Live. I'm Rob West. All right, it's time to take your calls and questions today.

800-525-7000. Boy, what a treat to have Miriam Neff by today to talk about Wise Women Managing Money. By the way, I really would encourage you to pick up a copy of that book. If you find yourself in that season of life, perhaps thrust in to managing money after the passing of a spouse, Miriam's been there. Her Ministry Widow Connection is designed around serving you in this season of life, and I know that book would be a real encouragement. Wise Women Managing Money.

You can buy it wherever you buy books. We do want to turn the corner, though, and take any financial question today. We'd love to hear from you at 800-525-7000. We've got lines open. Lynn standing by as our call screener today to speak with you, and again, you can get through right now. 800-525-7000. Let's dive in today.

We're going to begin in Cleveland, Ohio. Hi, Nicole. Thanks for calling. Go right ahead. Hi, Rob.

Thank you for taking my call. I wanted to know, what would you recommend if you had to start from scratch with investment and you're a mom who's single? How would you and what would you do different?

Something that I can also share with my teenage son so that he won't make some of the choices that I made? Yeah, well, I appreciate that question, Nicole, and, you know, it's never too late to begin, and so I think the key is to just start. Even if you're not, you know, putting away the amount that you'd ultimately like to put away, just start to develop that discipline, that habit of saving continually, and, you know, that will begin to put the compounding effect into place, which, obviously, if you invest systematically, it's something that we call dollar cost averaging, which just simply means if I'm putting a consistent amount into the stock market or the stock and bond market, let's say I'm buying at different points. I'm buying when the market's up. I'm buying less shares. I'm buying when the market's down. I'm buying more shares, but I'm putting in the same money, and over time, I'm averaging my cost, but the goal is to take that long-term perspective. Nicole, anytime we think about investing, we do want to put it in its proper context and make sure that we've dealt with other, more immediate concerns first.

Namely, I would say let's make sure we're giving systematically at some level. Secondly, we want to have that emergency fund in place. That's that three to six months worth of expenses in emergency savings that we can fall back on for the unexpected. Beyond that, I want to make sure I've paid off all my consumer debt, so I certainly don't want any credit cards hanging around. Maybe we have, you know, some student loans, but as long as we're on a plan to pay that back, let's say, over a 10-year period, you might have a car payment.

That's okay, but certainly let's get rid of that credit card debt. Once that's gone and we've got the emergency fund in place, now we're starting to think about investing for the long term. Usually we do that through a company-sponsored plan. So think 401k or 403b with a goal of 10 to 15 percent of your pay going into that plan. So with a 401k, let's say for 2024, you're going to be able to put away $23,000. So, you know, nearly $2,000 a month can go in. You certainly don't have to put that much, but, you know, it gives you quite a bit of room for contributions and usually employers will offer some sort of match.

So it might be typical to get a three percent match dollar for dollar. We certainly want to take full advantage of that because it's free money. The benefit of that, using either a company-sponsored plan or even an IRA, an individual retirement account, is that as long as that money is in fact earmarked for retirement, we have the option to let it grow on a tax deferred or a tax-free basis.

And that tax advantage allows the compounding effect to work even more pronounced because the taxes aren't creating a drag on the investments while it's growing. And then we either deal with that in retirement if it's a traditional or we pay it upfront if it's the Roth version. But let me start there and just see if you have any questions about that or if you want to share any other specifics about your situation. So I've transitioned since the pandemic going back to work.

Actually, I'm looking for work in a new position and I'm on that journey right now. I don't have any credit card debt. I am making car payments which is, I'm glad I don't have any additional credit card debt. But I do have a student, a son, who's going to be going into college this upcoming fall. So I just wanted to make sure that as I'm getting a fresh start, I'm positioning him so that he can look at finances differently. I know I've heard you mention the envelope system and that's all new to me. So I want to make sure that as I'm learning something new, he can also learn it.

Yeah, I love that. Well, I'd love to do a couple of things for you because this is a really key time for you. I'm delighted to hear that you're interested in learning, you know, these principles.

Obviously, you know, this is a situation where, you know, you're going to figure it out as you go and that's great. So seeking wise counsel is going to be important in really putting these key building blocks in place. I think for him, what's going to be important is that he not only have some reserves, some emergency savings, but that he defines any short or medium term goals.

So, for instance, the ability to get an apartment first, last in security and turn on utilities. Or if he needs to buy a car, he'll want to be saving in probably an online high yield savings account for those. And then something that's long term, a great option would be a Roth IRA. He could open a one with Charles Schwab and use the Schwab Intelligent portfolios or Betterment. But that would allow him to put away up to $7,000 for this year, as long as he has at least that much in earned income.

And that would be a great option as well. Here's what I'd like to do for you, Nicole, just as our gift to you. I want to connect you with a certified Christian financial counselor to help you get that budget set up, that envelope system, and talk to you about investing. Somebody just to maybe help you put all the pieces in place and gain some confidence on your plan.

So you stay on the line. We'll get your information and get somebody in touch with you at no cost. We'll be right back.

Stay with us. Helping you to see God as your ultimate treasure and money a tool. That's our goal here on this program each day.

I am Rob West. This is Faith and Finance Live on Moody Radio. We're taking your calls and questions today on anything financial, looking to the themes, the big ideas, the passages, and scripture to inform how we manage God's money, because that's ultimately our role. Stewards are managers of God's resources.

So as you think about living, giving, owing, and growing God's money, we want to apply those principles. But we also recognize you have practical decisions and choices you're making every day. We want to help you do that. Call right now.

We've got lines open. 800-525-7000. Again, that's 800-525-7000.

Let's go back to the phones to Plantation, Florida. Hi, Jordan. Go ahead. Okay, thank you. Let me interrupt you for one second, Jordan, and just ask if you'll turn down your radio. That'll help to avoid that echo there, and then you can go right ahead.

Okay, I want to know. I have two investments with Fidelity and with Vanguard. With Fidelity is a money market, and with Vanguard is a brokerage company. My question is, who is better, the brokerage company or the money market?

It's a good question, and if you'll maybe turn it down slightly just a bit more, that'd be helpful. You know, it's really comparing two different things. So Fidelity and Vanguard both can house your investment accounts, and both can do very well at it. Vanguard is a mutual fund company, but you could have an individual account there, meaning a taxable account. You can have an IRA, and then you'd typically put the Vanguard mutual funds inside it, and they have some good ones, and they're known for being low cost and have high quality funds. With Fidelity, very similar, although you're going to have access to more investment options. A brokerage firm where you can have any kind of account, basically, you want, and then you can put inside that account, you know, the investments that you select. You could use Vanguard funds inside of Fidelity or any other fund family stock or exchange traded fund. So it's not, Jordan, as much as one being better than another, as it is what type of investments are going to best suit your needs and who is selecting those. If you're doing the one selecting them, and if you're if you're happy using Vanguard investments, then there's no reason for you not to have an account with Vanguard. If you want more flexibility, more options, more investment choices, well then Fidelity would probably suit you better. Does that make sense?

There's no reason for you not to have an account with Vanguard. Let's do this. We're getting a lot of echo there. Hopefully that'll help you, Jordan, and if we can serve you in any way in the future, don't hesitate to call back. Thanks for your call today.

800-525-7002, Idaho. Hi, Cheryl Lynn. Go ahead. Hi, thank you for what you do. I've been listening to you ever since I discovered you, and it's wonderful. Oh, thank you. Yeah, it's wonderful. If a lot of questions get answered, I don't even have to call. That's the idea. Yeah, you're on to something there. That's good. Yeah, I can just listen.

If I listen to it every day, pretty sure you're going to answer. But I am recently, fairly recently widowed. I sold a house.

I bought a new house. I have a little chunk of money that I'm going to be putting to lower my mortgage payment because I won't be able to pay the mortgage payment otherwise real well. And I'll have a little bit of money left when I'm through, and I'm not sure what to do with it. I'll probably only have, like, after I leave a little liquid, like about 10 grand liquid for the house in case something happens, you know what I mean? But then I'll have about $5,000 to $8,000, maybe $10,000 left cash that I want to invest in something. I have a Schwab account now with one Schwab account that's done quite, that has $10,000 that I don't touch. Okay. And it's been doing quite well to stock.

But I don't know what to do with that small amount of money if I should get gold or if I should, I'm just not, my husband helped me a lot in this area and he's not here anymore, so. Oh, yes. Well, I'm so glad you called, and thanks for that helpful background. Let me just clarify something. So you're going to pay off the mortgage entirely, is that right? No, no, I'm just going to put about half down.

Okay. But that's not going to help you free up cash flow, because if it's an amortized mortgage, that payment stays the same unless you pay it off in full. No, I'm going to refinance it. No, I'm going to refinance it.

Oh, you are going to refinance. Okay. What is your, yeah, because it's not a good loan right now and it's not a good loan.

Okay. What, what do you, what makes it a bad loan? Is it the high interest rate or something? No, at the time my score was lower and my husband was worried about not getting the house because people were fighting over it.

Okay. And so we went with a credit union that didn't put the taxes in, didn't put the insurance in, which we were used to, and, um, was actually like way high. The rate was almost 6% during a whole, when everybody was down to two and 1%.

And then our, they said they'd raise it back down when the, when the interest rates, um, when our credit score went up back up, which it went back up within a month, it was just a little bleep, but, but they never did. And so I'm not real happy with them. Okay. Uh, what is the, uh, amount you're going to be borrowing with the new loan?

Um, about 190, maybe a little less between 185 and 190. Okay. And that's what you, that's what you owe today, or are you going to cash out a portion today? I owe three, three 77. Okay. And so you have enough cash to pay it down from three 77 to one 90 because I really need that lower payment because I don't have enough money to cover the little bit of savings I still have. I don't have enough.

It'll be gone. You know, I'm about $1,300 over what I bring in every month because of these, you know, the mortgage. Okay. So how much do you have in cash today before you do this refi? Oh, not much.

Well, you've got the proceeds of that home sale, right? Okay. Oh, I do.

I have 200. Okay. I've got, I've got the 190, a little over that actually, that I put in a three month CD at the bank because they are paying five, 4.5, which is pretty darn good for three months.

And then in March, when this horrible loan comes into this balloon payment that I didn't even realize we had, um, when all that happens, they wanted to re assess me because my husband passed during the loan. I told them, you know, I don't really want to go back through them, you know, and they were also trying to prepare me for a higher interest rate, but I already found a much better rate with my own bank. Okay.

Wells Fargo. Okay. And so that's okay. So you have a balloon payment coming up. Is that right? Yeah.

There's some kind of balloon thing I didn't even know about. Okay. All right.

That's helpful. The thing I was concerned about is, you know, you were going to take a 6% mortgage, which I realized you're not happy about for a variety of reasons. And you know, a 30 year rate right now is probably almost seven, you know, six and three quarters. I don't know what your bank's quoting you. So if your rate actually goes up and then the cost of the refinance is probably three, four, 5% of the loan value. Uh, I just want to make sure that this makes sense, but if you've got a balloon payment coming up, I get that. I also understand that you're trying to lower, lower your overall monthly expenses.

Uh, although you could take that, you know, 190,000 and invest it, but let's just say you go forward with your plan. Um, you know, what I would want you to keep in reserve is not based on just what your housing expenses are going to be, but really a function of your total monthly expenses. And I'd love for you to have three to six months worth of expenses set aside. Um, do you know how much you spend on a monthly basis total roughly?

Well, Bill, with my bills, I'm about $6,500 a month. Okay. All right, let's do this. Um, I, this has all been really helpful.

I've got to take a quick break. When we come back, let's get to some answers. I'll give you my thoughts on kind of where you go from here.

And I know you're looking for some investment advice as well. So stay right there. We'll be right back. Hey, great to have you with us today on faith and finance live. I'm Rob West. We've got lines open, maybe room for one or two more questions, 800-525-7000.

You can call right now. Now, before the break, we were talking to Sherilyn in Idaho. Uh, her husband has passed away. She's, uh, just looking to reposition her finances. She's got, uh, some money that she wants to set aside for savings. Uh, she's got a little bit of money. She believes that will be leftover beyond that. She's wondering about investing. She's got some stocks in a Schwab account. She's also having to refinance a loan that is about to come into a balloon. Um, she's happy with where she's going to head with that. And because of a home sale, she's going to be able to drastically reduce the, the mortgage balance to get her expenses in line with her income.

All of that's good, Sherilyn. I think the thing I'm wanting to make sure of is that you truly have five to 8,000 that makes sense to invest or whether that should actually just become a part of your emergency fund. And we would use your expenses to determine that.

You mentioned that you're spending a little over maybe 5,000 a month, but let me ask, once you're done repositioning yourself with this new mortgage, uh, what would your expenses then be without the mortgage payment? I think they're going to be, oh gosh, I have it here. I can't remember the exact number, but it was, I get, I have about 4,500 between my social security and his pension. Okay. Okay. So, um, so probably around that number.

Yeah, I'm thinking it's going to be pretty close with everything. Okay. All right, good.

Yeah. So what I would typically say is I'd love for you to have, let's call it 5,000 for round numbers. I'd love for you to have three to six months expenses. So that's a minimum of 15,000, a max of 30. So what I would say is I'd probably feel better with you in this season of life, especially with you kind of still settling into your rhythms on income and expenses and managing cash flow. I'd rather you not put five to 8,000 to work in the market. I'd hang on to every bit that you have. So, you know, that would get your, your emergency fund up to 18,000, which is probably about the right number.

I'd in fact like it to be a little bit more. So I would say my advice would be don't invest that. With regard, you mentioned 10,000 and I think Schwab, you mentioned a stock. Is it a single stock or is it a mutual fund? I think it's a single. It's McDonald's. I think.

Yeah. So that's not diversified and doesn't really matter what the company is. You know, putting all of your eggs in one basket, you know, is just giving you more risk than is you really need to take. So I'd probably, you know, you'd want to talk to your CPA or your advisor on this because you likely create a taxable event. But, you know, I'd like as long as you consider the tax consequences, you're probably better off to move that to a mutual fund where instead of owning one stock, maybe you own 50 or 100 or a couple of hundred stocks and then you're more diversified. So I would hang on to that money and put that all into a high yield savings account. You could use an online bank that you might select at bankrate.com. The last thing that I would say, Sherilyn, is even though you're happy with the offer that Wells Fargo gave you, I'd get at least three bids on that mortgage before you go ahead with it. This is the largest transaction you will ever have and often, and I'm not pointing my finger at you, we all do this, often we'll just get one bid. And, you know, you need to let people compete for this business and see if you can get better interest rate. Maybe it's the same interest rate, but, you know, you'll find somebody with lower fees. You can still go with a reputable company that offers the escrows, but I just wouldn't settle on one offer.

I'd get at least three before you make that final decision. Thanks for your call today. I hope that helps.

Hey, stay on the line. I want to send you a copy of the book that Miriam mentioned today, Wise Women Managing Money. I think it'll be helpful to you and a real encouragement to you in this season of life. May the Lord bless you, Sherilyn.

Let's go to Akron. Hi, Ann. Go ahead. Hello.

Hi, how can I help? Yes, hi. Yeah, I just have a quick question. We're in the market for a used car right now. We're driving in 2007 and I was wondering, I know there for a while used cars were very high, you know, very pricey. Is now a good time to buy a used car?

You know, it's better, I'll say, Ann. Used car prices are gradually falling. They were in 23.

This is continuing into 24. The only downside is the inventories are starting to decline as the prices get better because a lot of folks delayed purchases while the prices were sky high. So you're going to get a better deal now than a year ago, but you may have to look harder to find the car you want.

So I would be patient. Make sure you know what make and model you're looking for. Make sure it's going to be something that has a good reliability rating because you don't want to overpay and the key to that is you want to know the value of the car. You want to become an expert on whatever car you're looking to buy in the year that you want it. Get the value on kbb.com or edmunds.com and then shop, shop, shop. You know, the last used car I bought, I bought an airplane ticket and flew there three states away, spent the night, picked up the car and drove it home and saved three or four thousand dollars just because I was willing to wait a couple of months until I found the right deal and I was willing to travel to get it.

So, you know, that's another piece of it. Now, with a used car, we always recommend you get an independent mechanic to look it over for the inspection. You may need to pay them a couple of hundred dollars to do that, but it's worth it. Now, if you're buying it from a dealership that offers a guarantee, you may not need to do that, but you just need to understand what it is they're guaranteeing. But the bottom line to your question Anne is, yes, used car prices are coming down.

They're not great, but they're much better than a year ago. Okay, so if you buy a certified used car, that's probably better, right? It is, yeah. I mean, often you'll pay a premium for that, but oftentimes it's worth it because of the peace of mind. Is there one car that's more reliable on the market than another? You know, there are, and I would say, you know, just shop around for that. You could look at Consumer Reports, you could look at Edmunds, you could look at, you know, a lot of the reliability ratings online. That'd be a, you know, a great opportunity for you, or if you're not comfortable, a friend or a family member to help you spend some time on the internet with some reputable sources. You know, maybe you narrow it down to three makes and models and then, you know, compare them against each other in terms of safety ratings, reliability ratings, Consumer Reports.

I mean, there's a lot of options there. If you're not, you know, comfortable making those decisions, that information is available, but I would take your time before you narrow it down to the car. And then once you have the car, then you need to figure out what is the appropriate price for this year car I'm looking at with the, you know, the mileage you're looking for. And, you know, then once you know what you want to pay, now it's just a matter of being patient until you actually locate it. So you can do this, Ann, and I think this is a good time to do it.

Just make sure what you buy, you know, fits into your budget and take your time. Thanks for calling today. We appreciate it. Let's go to Indiana. Hi, Dora. Go ahead. Good afternoon. I have a question about a program that I heard on your program. It's to do with, I have a small IRA. I'd like to start streaming that to my church without touching because according to what you said before, if you, if I don't have hands-on, then I avoid any tax liability or that way.

Can you tell me what the name of that program? I'd be happy to, Dora. What is your age?

I'm going to be 72 in August. Okay, so you haven't started taking a required minimum out of this, correct? No, I have not.

Yeah, very good. Okay, yeah, it's called a qualified charitable distribution. Oftentimes you'll, you'll hear it referred to by the first letter of each of those words, a QCD, but that's a qualified charitable distribution.

And you're going to want to make two phone calls. One is to the company that holds the IRA for you. It's the company that sends you the statements every month or every quarter. Let them know that you want to do the qualified charitable distribution. They'll tell you how to do it, either an electronic or a paper form.

And then you're going to want to call your church and tell them that it's coming so that they're on the lookout for it and, and, you know, can be ready to receive it. But the bottom line is that gift will, you know, not be added to your taxable income. And once you get to the place where you have a required minimum, which is coming, that QCD can also satisfy your required minimum at that time. But you are correct.

It's a way for you to give without recognizing the distribution as income. Okay, that's, that's exactly what I was looking for. And I have been in contact with my church.

They just weren't familiar with the term either. And, okay, that's exactly what I needed to know. And I'm sorry, it's redone.

I know. Oh, it's fine. Yeah, no, I'm happy to mention that, you know, I'm glad you brought it up, Dora, because this is one that's often overlooked.

And we need to talk about it regularly because it's a powerful giving tool for somebody in your season of life. And so don't ever hesitate to ask questions. Thank you for your call today.

Let's stay in Indiana to Indianapolis. Jim, you'll be our final caller, sir. Go ahead.

Yes, sir. I just, I'm sure you've had this asked before, but I have got a, what I would consider a dead 401 from a past employer. It's, it's got a rather large sum in it. I'm now employed with a new employer. But the caveat in this is they don't have something for me to transfer into, into this 401. But in 18 months, I'm going to be also retiring from the Army Reserve. So I'm going to be growing a check from that. And I'm trying to figure out what the best plan to take this, this dead 401. Yeah, that I just put in an IRA or a Roth or Yeah, it's a great question, Jim. What is what's the amount roughly in there?

About 70. Okay, yeah. Yeah, you're going to be able to roll it out to a traditional IRA, not a Roth, because that would require you to convert it. And then it all adds to your taxable income for the year. And then you're probably going to want to engage with an advisor. If you don't have one, somebody who could manage that for you, I would if you are going to do that, I'd make that advisor selection before you touch the 401k, because the advisor will tell you or then they'll actually do it for you, they would open the IRA for you at whatever custodian they use.

So if they're in Merrill or Morgan, they'll open it there. If they're an independent, what's called a registered investment advisor, they may open it at Schwab or Fidelity. But if you are going to make that decision, and that way this person could actually make the investment selections for you.

I'd interview that person first. You can look for a certified kingdom advisor on our website at faithfi.com. Jim, hope that helps you serve. Thank you for your call today.

Faith and Finance Live is a partnership between Moody Radio and FaithFi. Grateful for my team, Lynn, Amy, Tahira, Jim, couldn't do it without them. Thank you for being here as well. We'll see you tomorrow. Bye-bye.