Hospitality as Generosity

Christians know the Bible tells them to be generous. What some may not realize is that God's Word also tells us to be hospitable. Hi, I'm Rob West.

Still others might not realize that there's a connection between the two, hospitality and generosity. Fortunately, Sharon Epps is here today to explain this to us. Then it's on to your calls and questions at 800-525-7000.

That's 800-525-7000. This is Faith and Finance Live, biblical wisdom for your financial decisions. Well, it's always great to have Sharon Epps with us on the program. Sharon is President of Kingdom Advisors and Sharon, it's great to have you back.

Wonderful to be back. Hospitality may be on your mind these days, Sharon, I'm guessing, because as you know, we just hosted and you led the team in hosting 2200 financial professionals at the Kingdom Advisors Conference, redeeming money in Orlando. And so this is obviously right there at the top of your mind, isn't it?

It absolutely is. And I think there's a perception that hospitality involves entertaining with big formal invitations or maybe complicated events like the Kingdom Advisors Conference. It might mean crystal in China and a spotlessly clean home.

And I just want to ask who does that these days? I haven't been invited to a China dinner in quite a while. But I've been challenged recently to study hospitality from a biblical perspective. We're given the instruction in Romans 12-13 that we're to share with the Lord's people who are in need. In fact, it reads, contribute to the needs of the saints and seek to show hospitality. We're actually commanded to show hospitality.

So I've given a lot of thought to what that might mean in today's culture. And one of the things I always do is go to the dictionary and see what it says about hospitality. And it says that hospitality is the friendly reception and treatment of guests or strangers, the quality or disposition of receiving and treating guests and strangers in a warm, friendly, generous way.

I love that. I also believe that hospitality is that act of generosity. And that's why we should care about it. It's a pathway to fulfill God's role for us as his ambassadors. And it also allows us to be generous, to make others lives easier. I have a quick story about that myself.

I actually had a season in my life where I was just having a lot of challenges. And I had some friends that literally invited me to their home, open door any night for dinner so that I didn't have to worry about going home to make dinner myself. Talk about hospitality. It was amazing.

Yeah, it sure is. And it really helps us to understand how to put feet to that idea. Now, you and I have been impacted by Will Gadara's book recently, Unreasonable Hospitality.

You challenged me to read it as we were thinking about our leadership at Kingdom Advisors, which I did, and I loved it. And he, of course, tells this story of transformation of an average New York cafe into literally the world's best restaurant in 2017. So talk about how that concept of unreasonable hospitality fits here. Well, he actually received that award, best restaurant, and it was because of his unreasonable hospitality. He believed that he needed to provide his guests with a fantastic experience. In fact, he calls it stretching the limits of what seems sensible. And he wanted to give them unique and tailor made service that made each and every one feel like a VIP and exceed expectations.

Now, are we back to that concept of finding it in China? I don't really think so. It's more a mindset of celebrating others. And it's celebrating those smallest details that can make someone feel really special.

Oh, that's exactly right. And I'd love to dig into that a bit more. So what do you see as some of the outcomes of unreasonable hospitality, if you will? Well, I think first of all, it just shows love in ways that each guest can recognize and feel. It also in us foster selflessness and helps us to be more generous. It also provides a safe place in this culture. It's rare that we have a place where we could just feel calm and safe and be ourselves.

It deepens fellowship and it helps fill us with joy because God's wired us that way. Yeah, he sure has. Well, we've got just about 30 seconds left. Tie a bow on this, Sharon. What would you leave us with here? Well, I'd really like to give us a challenge as we think about this idea of unreasonable hospitality. What gift has God given you that you might be able to share with others that might uniquely fit their needs?

Is it a child that might need to learn to cook? Is it a friend that's got an interest you share? Let's look at how we can share today. Yeah, it's such a great word.

And I love that we connect this back to generosity because our hospitality is really an extension of our generosity, right? It is. Well, we're just getting started here today. Sharon's going to stick around and we're going to answer your questions on anything financial. So call right now. The number 800-525-7000.

That's 800-525-7000. This is Faith and Finance Live. We'll be right back. 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. We're so thankful to have you with us today on Faith and Finance Live here on Moody Radio. I'm Rob West. With me in the studio today is Sharon Epps, President of Kingdom Advisors. We're taking your calls and questions. We've got lines open. The calls will come in quickly. So now's a great time to get in the queue with your financial question today.

800-525-7000. We want to help you make God your ultimate treasure, seeing money as a tool to accomplish God's purposes, money being one of God's good creations, as long as it doesn't become a ruling thing in our lives, as long as we use it to provide and enjoy, as God's Word says, but also to give. And that's where we started today, talking about our generosity, a particular aspect of our generosity, perhaps one you hadn't considered, and that is hospitality being a form of generosity. And Sharon, I love the idea of thinking about our giving, and certainly we see this in the New Testament, as not something we do under compulsion, but really out of an overflow of worship to the Lord, but also just gratitude for what God has done for us. And when we do it that way, being hospitable, even lavishly, is probably not something unexpected. Well, it's not. He was the first and most generous giver. We could never out-give him. And so having this opportunity to share what he's given us with others can bring us really great joy.

Yeah, there's no doubt about it. All right, folks, we're ready to dive into your questions today on any topic, living, giving, owing or growing. Give us a call right now at 800-525-7000.

The lines are open. Gabby T. is answering our calls today. So you're in for a treat when you call. You can say hello to Gabby and then we'll get you on the air quickly.

Again, 800-525-7000. Sharon and I are ready. Let's dive in.

We're going to begin in Georgia. Hi, Penny. Go right ahead.

Hi. I have a question about the Rule 55, pulling from your work, 401k. My husband plans to leave his employer at the age of 55 here in July. And he has a pension and we have a lot of other assets, but we find we're probably going to be about a thousand dollars short a month without him going back to work. So that Rule 55 be something to think about or totally stay away from it? Oh, Penny, yes, it can be. The Rule 55 means that if you separate from your employer in the year that you're 55, then you can withdraw from your 401k without that normal 10 percent penalty. Now, you will still pay taxes on it, so it won't be tax free, but you won't have that penalty to deal with if you do that. Yeah, I think the only thing to consider, Penny, is just, you know, we'd love for you to be able to leave this money in there, let it continue to grow.

And is there another way to solve for that? Could you downsize your lifestyle? Could he take on a part time job or continue to work? Now, it's there. You've saved it.

And so perfectly appropriate for you to think about using it, especially with, as Sharon said, the ability to miss that penalty. But are there other options for you to consider? We don't want to get you in a binary trap where it's either take the money or not.

Maybe there's other alternatives. How much have you saved in that? We and our total assets for retirement is just a little over a million dollars. Okay. And what portion of that is in this 401k?

That is two to two to two to 200,000. Yeah. Okay. So you'd be pulling from this one, you said about how much per month?

We would need about a thousand. Okay. And that depends on his pension if we do the lump sum or if we do a survivor benefit and take just the monthly payment. Yeah.

And obviously, it's an important thing to think through and consider in light of your overall objectives. I love the idea of you having the survivor benefit, because then if something happens to him and you outlive him, like most of our wives will as men, then you have that money to fall back on as well, even though you're giving up something. How long would you need to pull from that 401k in particular? I guess until he gets to 59 and a half, or what are you thinking?

Oh, no. We would set it up just taking that amount indefinitely. And if not needing it, it would just go into our regular savings. Gotcha. And then are you working now as well?

I just work part-time. Okay. Very good. And so what you're saying is- And we don't spend my income- I'm sorry, go ahead.

Okay, very good. And we don't spend my income. My income's all going for my retirement. Oh, I see.

So perhaps what you could do would be to start drawing a portion of that. Now, it's kind of taking it out of one or the other, because with you putting it in salary deferred in your retirement, that's being excluded from your taxable income. And so for him to pull it from his without that penalty is probably a wash, because now you are going to add that to your taxable income there. If you were to stop working, how much would you all need to cover your lifestyle expenses? We need, without my income at all, we need $4,500 a month. Okay.

Yeah. So the good news is with about a million dollars in investable assets, and I assume that means pre-Social Security, you're a little higher than what I would like to be. I mean, we'd love for you to be around 4%, which is $40,000 a year, which is less than what you're looking for at $45,000. But obviously, when you all get to that age where you start taking Social Security, that changes things quite a bit. So although you'd be a bit high, you're still under 5%, which is good, because that means you're in a reasonable range there. So I think this sounds good.

I mean, except for him perhaps finding some work just to offset this so you can take as little as possible, I think at face value, there's nothing wrong with this overall plan. Now, do you all have an advisor that's managing the total assets? Some of our assets, yes, are at a financial institution.

Okay. And are they giving you financial planning advice in addition to asset management? Yeah, we sat down with them. They did their computer-generated thing that if you work to this age, to that age, and all of that. We haven't sat down with them because we didn't know about our health insurance at the time, which we will have that through the employer until contract. And then we got to wait.

Once contract is negotiated, we'll find out if he will still have it in retirement or not. Good. Yeah. Well, I love the idea of you having a sounding board as you transition into this season of life.

Maybe that's this person. If you want somebody who shares your values, you could look for a certified kingdom advisor at faithfi.com. Let me also mention a resource we talked about yesterday on the broadcast. If you go to soundmindinvesting.org, they've just produced their what they call their pre-retirement checklist. And it's a great resource that will actually walk you through all of the things you need to consider as you head toward retirement.

I think that comprehensive list will be very helpful to you. Penny, we appreciate your call today. Sharon, any other thoughts? Just I mean, so many considerations as you head into this season of life. I would just emphasize the help of a certified kingdom advisor could help you sort through because there's a lot of parties you're trying to balance. And I think someone just a third party to help look at lay everything on the table could help you order those priorities.

Yeah, that's exactly right. Tax considerations. What about long term care insurance?

I mean, between 55 and 65. That's the time to consider that. That's probably your biggest risk for those who have less than two million in assets. Certainly something to look at, even though it can be expensive. It could be a huge benefit if you need long term care for an extended period of time.

All of those issues, including Medicare, when that time comes and an advantage plan or a Medigap, an advisor could help you think through all of that. A CKA is available to you at our website, faithfi.com. That's faithfi.com. Just click find a professional at the top of the page. All right, folks, so we're just getting started.

A lot more to come. Sharon Epps here today taking your calls and questions. The number 800-525-7000. Call right now and we'll be right back. Well, welcome back to Faith and Finance Live on Media Radio. I'm Sharon Epps sitting in the studio today across from Rob West and we're having a great time taking your questions. Let's go right to our callers.

Mary Ann from Ohio. How can we help you today? I'm pending a retirement decision on how to take my pension and I have the option of either taking a monthly annuity for life from my company or taking a lump sum amount and doing something different like buying a private annuity and I'm struggling with what the right decision is. Certainly the math would say take the company annuity, but there's some questions on, okay, how secure is that pension? Companies can change it.

The leadership is questionable. So just looking for any advice or insights. Well, thank you, Mary Ann.

It's always great to seek counsel and get a number of godly counselors to weigh in. Let me just share a couple of things. First of all, do you have other retirement monies or is this the sole source of your retirement income? I would have other. I am social security eligible and I have a 401k plan. Okay, so you do have multiple streams of income that could be coming in.

That helps. Talk to me a little bit about the annuity itself. Are you thinking that if you rolled out, it would be important to go into an annuity and what are some of the motivations there? For rolling out of the company annuity? Basically, the big concern is the leadership of the company.

They have made some really bad decisions. The pension fund is funded at 100.4% based on the 2022 funding letter. So it looks like it is funded, but of course there's the caveat that they can opt to change or amend the plan at any point in time. So the big concern is, and many companies have done this, I mean LTV, Seal, GM. And so the question becomes, are you better off? Many people have the view of you're better off taking your money running and then you've got control of it versus what could happen with the company. Yeah, I think generally that would be our recommendation as well. It just gives you control and flexibility and you can adapt as you need to. I guess my next question would be, I think typically we don't recommend annuities because they're complicated, they're hard to understand.

And really one of the main attractions to them is just if you feel like you need a level amount no matter what, and you don't want to have to think about it. So I guess my question would be, would you consider alternatives to that annuity if you did roll it out? And the answer is yes, because especially now reading IRS code with RMDs, it seems like other options would give you the ability to do some variability to try and manage where you end up having to pay your taxes at. Yeah, yeah, that's right.

I mean, I think Sharon brings up some great points. I think the key is, are you just looking for that guaranteed income stream that you can't outlive? Or do you want a little more flexibility? And with that, you're willing to assume some risk. And I think there's risk on the other side, even though, you know, there's guarantees and protections from the government.

You know, if the if the company were to fail, obviously, you'd rather not have to go through something like that. What are they willing to pay you as a monthly income stream? $8,400. All right. And is that for your life or you plus your husband?

No, I'm single. So it would be for my life. Okay, very good. And what is the amount they would give you as a lump sum? Somewhere around a million. Okay.

All right. So I mean, obviously, you're getting quite a bit more per month, because we would recommend you only take out $40,000 a year. And in your case, you know, you're taking $8,400 a month, which is about $100,000 a year.

So you're getting quite a bit more for the rest of your life than we'd advise you to take. The downside is, you can't tap that money to be able to, you know, pull large sums out if you needed to pay for long term care, you had some major unexpected expense. Now, how does that roughly million dollars factor into the rest of your retirement assets? What do you have outside of that? Not counting Social Security, but you mentioned, I think, a 401k?

Right, I've got a 401k. And how much is in there? Quite a bit. Okay, so substantially more. Yeah. Okay, great.

Yeah. And so what is your lifestyle lifestyle spending monthly today? Probably without tax implications somewhere about 6000 a month.

Okay. So obviously, if you take the monthly payout from your employer, then you've got that covered for the rest of your life, no matter what the market does. And then you've got substantially more than that outside of it. If you needed to tap into it with your assets, you probably don't need to think about long term care insurance because you'd self insure. So I think, you know, if that gives you some peace of mind to know that no matter what happens, I've got this check for life, my bills are paid, and then I got other assets to tap into, that's great. If you'd rather have all of it available to you out from under your company's plan, and have an advisor that can manage it, mitigate risk through the investment strategy and diversification, and know that you've got 100% of it available to you, well, that's a great option as well. I think the nice thing is you're not having your all egg, all of your eggs in one basket, you can almost have the best of both worlds.

If you really liked having that monthly guaranteed income stream. Yep. Okay. Yeah. Very good. Yeah. So I think at the end of the day, we're saying you could go either way. And the good news is you're gonna have Social Security on top of all of it, Marianne.

So you're in really good shape. Hey, thanks for your call today. We appreciate it. By the way, I'd love to send you a copy of our friend Jeff Hainan's book, An Uncommon Guide to Retirement, just as our gift to you. You know, he really tackles some important topics for this season of life on listening to God's voice for your calling in retirement, rethinking work in retirement, even taking a sabbatical rest in some of those early years of retirement. So stay on the line, Marianne, we'll get your information and get that right out to you. Thanks for your call today. Sharon, before we head into this break, you know, transitioning into this season of life comes with just a lot of questions. And the preparation we do for that I think really pays off.

It does. And obviously, she's very financially prepared. And I'm excited for her to have an opportunity to make sure she's prepared for how she spends her time as well.

That's exactly right. So often we prioritize the financial. It's important, but we leave out the non-financial.

It's equally as important. All right, Rob West and Sharon Epps with you today. We're going to take a quick break.

All the lines are filling up. So we've got a lot of great questions coming your way just around the corner. Stick around. So glad to have you with us today on Faith and Finance Live. I'm Rob West, Sharon Epps here today. We're taking your questions on anything financial.

Two lines open, 800-525-7000. Hey, before we head back to the phones, let me remind you, our brand new study is out. Now, you might say, what is that? Well, it's the first in our FaithFi study series. It's a study, four-week study on the parable of the rich fool.

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Well, as he so often did, he turned the tables and told a parable that really got to the heart of the issue. And it addresses heart issues that we have still today around where is true abundance found? And what does it mean to live rich toward God?

And what about pride and prosperity that can creep in? What about the uncertainty of tomorrow? If you're looking for a great study that's practical and rooted in God's Word for individual study or maybe your small group at church or in your neighborhood, check it out today. You'll find it at faithfi.com. Just click shop. That's faithfi.com.

Just click shop. All right, Sharon, let's head back to the phones. Well, let's welcome Diane from Wisconsin.

Diane, how can we help you today? Well, here's the deal. I have repairs going on in my house. And so what I did was I'm in the process of trying to secure a loan and it's a fixed home equity loan.

And it's 6.99. And right now the debt to my ratio income is 30 point something. And anyway, the bid for my house came in lower. So I can do three thousand or 35,000 if I want to, but then my interest went up to 7.31. And I wondered if it would be good to secure the 50,000 to do other repairs, remodel type of stuff on the house. And like, or if you've got car problems, you know how stuff happens with the older house.

And also, you can do up to 30 year and the payment would be like $332 a month. Okay. Well, first of all, let me make sure this is I'm clear on this. Do you have a mortgage underneath that or would this be the only loan against your house? Yeah, the house is paid for. Yep. Okay.

That's wonderful. Well, I think in general, I would never recommend that you borrow more than you need. You never know when you might have an economic condition where it's harder to repay that. I think the 15,000 sounds like what you need for now. I guess the question would be, have you budgeted the extra expenses?

Are they just, I might have them or are they things that, you know, for sure need to be done to the home? Well, and that's a good, you know, that's just like probably like maybe eventually getting the house fixed. Like, you know, like if you do like more handicap type things or like people put in stuff ahead of time, even if they don't need it, like, so if you break your knee or something, then you can get into the shower or whatever and have it already fixed for you because I plan to stay in the house longer. But one thing I do have is like an online savings, which is like 4.30 type of thing. And I could put some of it in there.

They didn't care where I put the money. So you would have, you could get a little interest off of that, which it would be, you know, take the 6.99 down, and you can pay it off as fast as you want to. Well, I think that I think it's excellent always to pay things off as fast as you want to. But basically, what you would be doing is paying them a difference of about 3% for the privilege of holding their money that you don't need. So I think in general, we prefer that you only borrow what you need, have a plan to pay it back and then think in terms of perhaps adding to your savings, that same amount of your payment so that when it is time for you to do those extra repairs, you actually have the money already in savings, you don't have to go to an outside lender.

Yeah, I think that's great advice. How quickly can you pay this down, Diane, just out of current cash flow? Do you have an idea of your payback rate? Yeah, that rate and well, right now, just if that helps the liquid cash is like $24,000. That's kind of my emergency fund technically. And you know, some living expenses in there. And then like monthly income is about 3000 because I am self-employed, you know, it's a flower shop. So, you know, we have our ups and downs with holidays and everything. But and I think I'd like that, you know, but the 7.31 interest, that probably still would save if you just got less because the bid came in lower. I don't know if I said that.

Yeah, yeah, no, that makes sense. So how much do you have surplus that you could send beyond the scheduled monthly payment? Well, I could probably, you know, I'm sure I could do double, you know, like it's for the 50,000.

It was 332. But if you did a 30 loan 30 year loan on the 35,000, it would be like 222. So I could probably triple that. Yeah, well, that'd be great. And then you could pay it off much quicker.

I like that option. And then if you needed to borrow more down the road, hopefully you'd be doing it a much lower interest rate. You know, the Fed, the Federal Reserve met today, they reemphasize the fact that rates are going to be coming down.

That's why the stock market is up so big today. And so it's likely that let's say a year from now, you found some other things you needed to do around the house, you could borrow money at much less, maybe even a couple of points less than you could today. And you won't have the temptation to spend that money prematurely or unnecessarily, if that makes sense.

Like kind of just rip everything out of the house and redo that, gut it and do it. I understand. And that does make sense, you know, because I am pretty conservative when it comes to like, oh, wait. Yeah, well, let's take as little as we need. Let's do that work. Let's get it paid off as quick as you can. And then we can take the next project when it comes and hopefully pay less in interest. Hey, thanks for your call today. Let's go to Indiana. Hi, Kent.

Go ahead. Hi, my question is, how are 401k and IRAs protected against cyber theft? Yeah, well, usually the company will step in and make you whole.

This is a thing actually, you know, cyber theft is up across the board. That includes a whole host of could be IRS related where they get your refund, but it also could be retirement plan related where I read an article in Forbes where somebody realized their direct deposit never showed up, called the company, realized that the bank had been changed. It's not his bank. It was done fraudulently and somebody else was getting it. Well, what happened? Well, they made him whole and got it corrected and realized they had done it to several other accounts in the same institution.

How does it happen? Well, usually through phishing emails. That's with a ph where they capture your log in information. It can be through the paper mail as well, which is even more difficult to overcome.

They could fill out a form and send it in. And, you know, what I would do is call your company and just say, what protections do I have or alerts that could be generated if there's ever a change? Number one. And then beyond that is just kind of the general precautions you can take.

And what are some of your favorites, Sharon? Well, definitely when you have the opportunity to have two factor authentication so that someone can't has to have two ways to get in. And I think one of the other ones is just stay on top of your balances.

So make sure every quarter at least, and perhaps even every month, you check your accounts and make sure nothing crazy is going on, because the sooner you've found something out, that's one of the best preventions of it being a big breach. Yeah. Does that help? Okay. Yes.

Yes, it is. I had a scare a while back where I tried to get into account and I was locked out of it. And yeah, for many calls, they told me someone tried to get in. Yeah, fortunately, the good news is it worked, right?

Because they locked it down. And then hopefully, that's where you know, you calling will unlock it, you change your password, and you're off to the races. Unfortunately, this is just something we all have to live with.

So using those best practices, multi factor authentication, no public Wi Fi, using strong passwords, changing them regularly, putting alerts on your accounts are probably the best way to go. Hey, thanks for your call today. We appreciate it. Folks, we're going to take a quick break. By the way, if you want to support our work here at faith and finance live, just go to faithfi.com and click Give.

We'll be right back. We're so thankful to have you with us today on faith and finance live. I'm Rob West Sharon Epps here today. Hey, if you're looking for an advisor who shares your values, we recommend the certified kingdom advisor designation. These are men and women now 1500 of them and growing that have met high standards and character and competence.

They've been trained to bring a biblical worldview of financial decision making and could be just what you're looking for if you'd like to invest or plan God's money aligned with your values as a believer just said to our website, faithfi.com and just click Find a professional at the top of the page. All right, we're going to head back to the phone. Sharon and I taking your calls today. Let's go to floral city, Florida.

Sounds like a beautiful place. Hi, Kenya. Thanks for calling. Go ahead. Hi.

Thank you for taking my call. I have a question about the 1099 R and qualified distributions to the church. Yes, I did that in 2023. And on line one of my 10 1099. It shows the amount of the distribution, then on line two, a it has taxable amount. And it's that whole amount is on there.

Yeah. So a lot of people had this question this time of year, Kenya, you know, when you receive that 1099 are your IRA administrator just reports the amount of money that was distributed from your IRA and doesn't specify whether it was withdrawal, or a tax free transfer to a charity, which you can do after 70 and a half is what you're calling a QCD, a qualified charitable distribution. But this isn't included in your adjusted gross income, because when you fill out that form, and you file your 1040 online online for B, you're going to enter the QCD portion of that, which could be the whole thing or a portion of it that was actually given straight to the charity, and then you'd have your charitable contribution received to back that up. Does that make sense?

It does. But I can I use tax layer online to do my taxes. And I don't know how to pail up that 1040 to put that information in there. Yeah, it's a good question.

I wouldn't know specifically, I know it uses more of a question and answer type approach. And so hopefully, you're going to get to a screen that says was any portion of this distribution, a qualified charitable distribution, you'll input the number there, and then it'll put that on the proper form. If you don't find that or you're uncertain, you have questions, this would be a great opportunity for you to connect with a CPA who could really make sure that you're taking full advantage of any tax credits or in this case, exclusions from your adjusted gross income as possible.

I know this is a challenging one, we want you to get it right. Hopefully it becomes clear. But if not, I think a CPA could be really helpful.

Thanks for your call today. Let's go to Coeur d'Alene, Ohio. Hi, Dean, go ahead. Hi, my question is, is I have some property, and I just want to transfer it over to my son. And I'm wondering if a quitclaim deed is okay, or if there's a better option than that. Will he be living in the property or selling the property?

What is the plan, Dean? No, no, he's just, it's just, I just want to transfer it over to him, but he won't be living on the property. Okay, so the quitclaim deed often is used among family members, and it's basically a gift. I think that the benefit of that is that he will have the basis that he received from you in the property, the cost that he has put into the property.

So if he's gonna, if he's, or that you put into the property, if he may be better off to sell it pretty quickly, and that way the cost basis will not be as much of a factor. Yeah, I think that's the only consideration there is with the quitclaim deed, to Sharon's point, he's going to inherit your cost basis. Whereas if he inherits this as a true inheritance after your death, so through your will, or through a trust, now the cost basis is reset.

It's called stepped up, which means it's stepped up to the market value as of the date of death. And so if he were to turn around and sell it after you die by inheriting it, then he wouldn't have any capital gains. In this case, because you would potentially use a quitclaim deed, he keeps your cost basis, so now when he sells it, let's say at your death, he'd have to pay all of the gain from your original purchase price, and then he'd have capital gains on it.

Which is why folks, you know, why we generally advise not to use the quitclaim deed. What are you trying to accomplish in giving this to him now versus him inheriting it at your death? Well, I just, I'm getting older and I just thought it would be a good idea to just turn it over to him. Yeah. And you don't think he would, do you think he would keep it or do you think he'd sell it?

I'm sure he would keep it. Okay. Yeah. Yeah. I mean, I think the only thing is other than just knowing that it's done, and I realize there can be some peace of mind in that, Dean, just knowing that, okay, I've given it to him.

I don't have to think about it again. It's just not the best way to do it from a tax standpoint, because he doesn't get that reset or stepped up cost basis that ultimately will affect how much tax he pays when it's sold, even if he sells it much further down the road. So I think that's potentially the case for either putting it in a trust, which that would cost you a couple of thousand dollars to put that together, or just naming him in your will to inherit it.

Unfortunately, you don't have in the state of Idaho the the T.O.D. deed, the transfer on death deed, which could have been another way to do this. So it's going to have to be there through a trust or a will unless you're comfortable with him just keeping your original cost basis.

And then that's where the quitclaim deed is the simplest. Oh, okay. Okay. Does that make sense?

It does. And I appreciate the advice and taking my call. Absolutely. Hey, by the way, you know, when you do this, whatever you do, I'd get a real estate attorney involved just to make sure it's done properly. It's probably also a good idea to talk to, you know, your attorney around estate plans just to deal with all the issues related to estate planning.

This is where a wise counsel is really, really important. All right. Let's go to Minnesota, seeing cloud to be specific. Hi, Jeanette. Go ahead. Hi, Rob. Thanks for taking my call.

Sure. I've heard you talk about long term care insurance and I've been thinking about shopping for that. And the two insurance agents that I've asked about that either don't know what it is or don't deal with it. Do you have any advice on how or where to shop for long term care insurance?

Well, definitely. You don't want to work with them if they're not quite sure about it. Really, I would just start with searching for long term care insurance on the Internet and look for reliable companies and then do some price comparisons and benefit comparisons. And it's very important with the insurance companies to look at what we call their best ratings because that will give you it's like a grade in school.

It gives the grade and helps you assess their financial viability and their reputation as well. Yeah, I think the only other option that I would throw out and ensure makes a great point. You can do a lot of research online is perhaps contact a certified kingdom advisor in your area, Jeanette, and ask for a referral to a long term care insurance specialist. You know, there are insurance agents that specialize in long term care. Why would you want one of those? Well, these are customized policies.

I mean, they have some nuances to them. You need to think through what daily benefit do I want? Do I get that inflation rider? You know, do I want to think about any other factors? What about my health? One company may look at one health condition different than another and rate you differently, which means a different premium. And so a life insurance or excuse me, a long term care insurance agent who understands that works in this space could be really helpful there.

So to find a CKA that could make a referral to a long term care insurance specialist, just go to our website, faithfi.com and click find a professional. All right, quickly to Indiana, Kimberly, you'll be our final caller. Go ahead. Hi, I just wanted to know if I should get a home equity loan or refinance to pull out bonds for home repair and to invest in a franchise.

All right, a couple of questions. How much is your home worth? Well, they have to do an appraisal, but on paper right now, like 400,000. Okay, and what do you owe on that first mortgage, Kimberly?

Like 190 or so. Okay, and what are you looking to pull out for the franchise? Well, they were talking like 100,000. All right, you know, I mean, you know, anytime you're thinking about pulling out that much money, you know, I would, you probably would want to refight. But in this case, I wouldn't.

And here's why. Number one, it's not a good time. Rates are really high. Number two, I just don't like you pulling money out of your home equity to go into a franchise. I mean, number one, it's very costly. Number two, do you have any experience in this area? Do they have a proven track record? Do you have the financial wherewithal to stay in it long enough to make it turn a profit? And the fact that you're having to borrow from your home equity to even get in it just gives me a lot of concerns and says, perhaps you don't have that working capital.

They can make these sound really good on the front end. And they're just so much more difficult to actually make profitable. Any thoughts, Sharon? I would agree. I think it would be helpful to just seek some counsel, not from the the franchisors, but from otherwise business people and entrepreneurs on what whether there's some alternative ways you could get into the business without risking your home equity.

Yeah, I think that's right. I think I would stay away from that home equity, Kimberly, and let's save on the side, as Sharon said, maybe find a business mentor, somebody who can walk alongside you. And maybe you have a lot of experience in this area.

But I think the fact that we're having to look to home equity to get into it is just that red flag that says, let's slow down here and take our time and not put ourselves in a position where if this business doesn't materialize, and I hate to say it, but 70 plus percent of new small businesses fail. If that's the case, I just don't want and neither would Sharon want you to lose your house over this. And so I would stay away from that altogether. Hey, we appreciate your call today. That may have not have been the information you were wanting to hear. And I realize that.

So just make this a matter of prayer, seek some wise counsel and and then take it from there. We appreciate your call today. Well, Sharon, we covered a lot of ground, you know, just to bring it full circle today on generosity. You know, when we think about our role in managing God's money, what leaps off the page in Scripture is that we're to be generous, but it means in order to do that, we've got to hold our finances loosely. We also have to be intentional about how we manage it so that we have something to give away. We do.

And I think the benefit of living below our means and having margin gives us that opportunity. No doubt about it. All right. Grateful to have you here today. Great to be here.

All right. That's Sharon Epps. She's president here at Kingdom Advisors, and we always love when she stops by. Well, folks, thanks for tuning in today. We're so thankful for you inviting us into your story. And asking your questions for your kind remarks about the program. Faith and Finance Live is a partnership between Moody Radio and Faith Buy. I couldn't do this without the amazing team. We had Dan Anderson today, Amy Rios, Gabby T, and Jim Henry, plus the entire team here at Faith Buy that makes this happen every day. On behalf of them and so many more, I'm Rob West, and we'll see you next time. Bye bye.