August 5, 2025 • 43 mins
Have you ever faced an upcoming surgery—not just anxious about the procedure itself, but also wondering how you’ll cover the cost? Imagine if someone stepped in to guide you through the process, coordinating the details and helping you navigate the expenses. On the next Faith & Finance Live, that kind of support is available. Lauren Gajdek and Rob West explain. Then, Rob takes your calls and questions. That’s Faith & Finance Live, where biblical wisdom meets today’s finances—weekdays at 4pm Eastern/3pm Central on Moody Radio.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
S1 (00:03):
Today's version of faith and finance live is actually not live,
so don't call in.
S2 (00:08):
Have you ever faced an upcoming surgery? Not just anxious
about the procedure itself, but also wondering how you'll cover
the cost. Hi, I'm Rob West. Imagine if someone stepped
in to guide you through the process, coordinating the details,
and helping you navigate the expenses. Good news. That kind
of support is available and Lauren Gedeck is here to
(00:30):
tell us about it. Then we have some great calls
lined up. But we won't be taking your live calls
today because we're pre-recorded. This is faith in finance. Live.
Biblical wisdom for your financial journey. Lauren Gedeck is the
senior director of external affairs at Christian Healthcare Ministries, the
(00:52):
nation's longest serving faith based health cost sharing ministry and
a proud underwriter of this program. Lauren, great to have
you back.
S3 (01:01):
Thank you so much for having me.
S2 (01:03):
I know you've got some exciting news to share about
your new program, The Complete Surgical Care Solution. But before
we get to that, for listeners who may not be
familiar with Christian Healthcare Ministries, can you give us just
a quick overview?
S3 (01:17):
Yes, I absolutely can do that. Christian Healthcare Ministries has
been around for over 40 years. We are a biblically based,
nonprofit health cost sharing organization, so we help Christian believers
all over the United States with their medical bills. And
we have satisfied over $12 billion. That's billion with a
(01:41):
B over our history.
S2 (01:44):
Yeah. Well, and as I said a moment ago, the
longest serving of all the faith based health cost sharing
ministries and that 12 billion number speaks for itself. Lauren,
I want to dig into this new service from C.H.
we're excited to hear more. Tell us how it works.
S3 (02:02):
Yes, I'd be glad to. So we've introduced something called
Complete Surgical Care Solution. And what it is, is a
program that is at no extra cost to our members.
So if you join, you don't have to pay anything
extra for it. And it helps guide our members through
the process of having a surgery or procedure. Um, so
(02:27):
it's really almost like a curated experience where it's designed
to kind of hold your hand every step of the
way as you are looking at, you know, where do
I go for surgery and what am I supposed to
be doing? And you know what? What information is needed
and can, you know, take care of my bills. And
(02:48):
it's just very turnkey and very easy to do. And
like I said, you don't have to pay anything extra
or do anything besides be a member of Christian Healthcare Ministries.
S2 (03:01):
Wow. It sounds like a concierge service at no extra cost.
That's amazing. And I know stories can really help bring
this to life. I heard a story of a teenage
girl who needed hip surgery, and her family said she
felt like family through the process. Can you unpack that
a bit for us?
S3 (03:19):
Sure. Well, there was a young lady named Chloe who
was a softball player and had recurring pain in her
legs and hips. And finally they got connected with our
complete surgical care solution, and CSM was able to connect
her with a very high quality surgeon so she could
get a hip replacement. In addition, we were able to
(03:44):
help pay the cost of some of her travel. And
so that's one of the advantages of the surgical care solution.
And additionally, what happens a lot of the time is
not only does BHM receive a better price and the
patient receives better care, but the member can also be
(04:04):
eligible for a $1,250 credit against their out-of-pocket expenses. So
it's really a win win situation for Christian healthcare ministries,
for the doctor and especially for the patient.
S2 (04:20):
Well, that's exactly right. And I know in that specific case,
after the discounts are shared, over $145,000 in eligible medical bills,
which is amazing. Now, Lauren, what do members need to
know to be eligible for this?
S3 (04:34):
All they need is to have had a diagnosis from
their healthcare provider and a recommendation to have surgery. And
then if the procedure qualifies for our program, they just
contact us and Ketcham will take care of all the details.
S2 (04:50):
That is amazing. Lauren, thanks for being with us today.
We always appreciate your time.
S3 (04:54):
Thank you so much. Have a great day.
S2 (04:56):
Folks, if you're looking for a faith based cost sharing
ministry to help cover your medical bills is the longest
serving of all of them. You can learn more at. That's.
(05:17):
All right. We're going to head to a break, so
don't go anywhere. Still a lot more to come, even
though we're not here to take your calls live today.
But we have plenty of calls that we lined up
in advance. And we'll get to those just around the corner.
So thankful to have you with us today on Faith
and Finance live. I'm Rob West, by the way. Our
(05:38):
team is not here today. We're away from the studio,
so don't call in. But we've got some great questions
that we lined up in advance. We'll get to those
in just a bit. You know, I'm reminded as we
think about the role of money in our lives that
we need to counteract the messages of this world. We
need to operate from a biblical worldview. And when we
look to Scripture, I think we really see three big
(06:00):
ideas around the role of money. The first is money
is a tool. Yeah, we use it to buy things
for ourselves and others, and we use it to accomplish
God's purposes. But it's also a tool in the sense
that God uses money in my life to teach me
to rely on him. It's a daily demonstration of my faith.
It reveals where I've placed my trust and what I value.
(06:22):
So it's a tool. It's also a test. You know,
having too much or not enough can be a test.
Are we going to live with contentment? Will we choose contentment?
Are we going to rely on money in place of God?
It's a test in our lives, but it's also a testimony,
especially our willingness to trust God when we have little
or perhaps to share generously when we have much that
(06:45):
provides witness to an unbelieving world, even our faith to
handle money God's way in the midst of uncertain times.
That itself can be a great testimony to the world.
So money is a tool. It's also a test, and
it's a testimony that God uses to both provide for
my needs, as well as to grow me up in
(07:06):
my faith and rely more heavily on him. I hope
that's an encouragement to you today. Uh, before we head
to the phones in the news, uh, if you're planning
to borrow for college, some big changes are coming that
could affect how much you can take out and how
long you'll be paying it back as a part of
the one big, beautiful bill, the federal government is placing
new limits on Parent Plus and Grad Plus loans. These
(07:28):
programs historically allowed families and grad students to borrow almost
unlimited amounts. Starting this fall, the loans will be capped
at $20,000 per year, with a lifetime limit of $65,000
per child for parent plus borrowers, which still seems like
an awful lot. The changes are a part of a
(07:48):
broader federal effort to reduce long term debt burdens and
curb over borrowing that often leads to years, sometimes even decades,
of repayment hardship. Several loan forgiveness pathways are also being
phased out, with some programs ending in July 2027. Now,
critics say the caps will limit access to education, but
(08:11):
supporters argue they'll help families make more sustainable choices. I
will say that I think one of the reasons that
we've seen college tuition inflation outpacing or excuse me, outpacing
inflation across the board is because of the unlimited borrowing.
You know, it doesn't incent colleges to be thoughtful about
(08:34):
where they price their education, when basically you can borrow
as much as you want. And so I think this
leads to not only smarter decisions, hopefully by families that
are more sustainable, but also hopefully not the kind of
runaway college tuition inflation that we've been seeing over the
last several decades. Now, whether you think this is a
drastic fix or not nearly enough, it's at least a
(08:58):
start to ending the misery of paying off student loans
well into your 40s and 50s. We say, first of all,
if you can avoid borrowing altogether, do it. Let's find
other ways. You know, taking those dual enrollment classes or
AP classes, working hard, making sure you're applying for all
the scholarships and grants, perhaps getting an on campus job.
I did that my junior and senior year, and was
(09:20):
a way to cover my room and board as a
resident assistant, I worked on campus and managed. You won't
be surprised. The Christian radio station on campus, you know
there's opportunities to work in the summer, perhaps a paid internship.
My son has a paid internship here in Atlanta this summer,
getting great compensation, getting incredible experience in his pursuit, his
(09:43):
field of choice. And you know, he's going to graduate
with a little bit of a nest egg that he
can use. You could use that to apply to college
expenses as well. So don't just assume because it's available,
you need to borrow everything. Let's look for every other opportunity.
Now if you do borrow, I'd say kind of as
a rule of thumb. First of all, make sure you
don't borrow any more than you would have the ability
(10:06):
to repay based on real world salaries that go along
with your field of choice. So let's make sure those
things aren't out of step. But secondly, I would use
ten years as a reasonable payback period. If it's going
to take you a good bit longer than ten years,
perhaps you ought to stop and pull back and think
about other options. So hopefully those are some thoughts to
(10:27):
help you out today as you think about managing God's money,
borrowing as little as possible. Remember, borrowing is not a sin.
But there are clear warnings in Scripture about it. So
we need to heed that wise counsel. All right. We're
ready to dive into some questions today. We're going to
begin in Alabama. And Renee, you can go right ahead.
S4 (10:45):
Hi. Thank you for taking my call. Yeah, um, my
dad passed away this year in January, and he left
a will, but it was in a trust. And, um,
the house that he lived in in Illinois is in
that trust. But he gave a living word.
S2 (11:06):
A life estate, maybe.
S4 (11:08):
Yeah, yeah. Life estate for his, uh, unwanted girlfriend. And
we really don't want to have to incur, uh, keeping
the place up and paying taxes and so forth. So
how could we get out of it without creating a
(11:28):
lot of issues for everybody?
S2 (11:31):
Yeah. Uh, it's a great question. And, you know, it
sounds like you and your siblings are navigating a, uh,
a complex situation with shared responsibilities. Uh, if the life
estate is held in a trust with you and your siblings.
And is that your understanding?
S4 (11:48):
Yes, sir.
S2 (11:49):
Okay. Um, yeah. If that's the case, then as trustees,
you're all legally responsible for managing the property in the
best interest of the trust's beneficiary, likely the person with
the life estate. Um, now, is your father still living?
S5 (12:05):
No. He passed away this year.
S4 (12:07):
January.
S2 (12:08):
Okay. Yeah. So when the life estate ends, you know,
when the usually when the life tenant passes away. So
in this case, it would be your father. The property
goes to the remainderman often named in a trust. So
now the trust is the legal owner of the house.
The trustee then manages the property according to the trust terms.
And the beneficiary, likely you and your brother. The beneficiaries
(12:32):
share in the ownership benefits such as rental income or
sale proceeds. Um, so the trustee who is the trustee
on this trust? Do you know.
S5 (12:43):
The trustee.
S4 (12:44):
Is the girlfriend's son and the life estate is for
the girlfriend? They were never married. And it's not his child.
That's who he set up in the will. Okay. Um,
she she's the one with the life estate, and he is, um,
I guess, over the trust. I'm assuming he's over everything.
S2 (13:06):
Yeah.
S4 (13:06):
Yeah.
S2 (13:07):
Um, and so what is your, uh. Are you one
of the beneficiaries of the trust?
S4 (13:12):
Yes, I am. Me and my brother and sister, all three, uh,
have been are beneficiaries of the trust. And the way
we understand it is that our names would go on
the house since it was dad's house. And we're over
the trust.
S2 (13:30):
Yeah. Okay. Uh, did you say that the life estate
is for the girlfriend, so she's going to continue to
live in it. Is that right?
S4 (13:37):
Yes, sir.
S2 (13:38):
Okay. Um. And now tell me about your brother and
what he's wanting to do here.
S4 (13:43):
They were floating around the idea of of getting a
a loan and then just defaulting on it on the house.
S2 (13:52):
Oh, boy.
S4 (13:52):
I don't think that's a viable idea, but.
S2 (13:57):
No. Definitely not.
S5 (13:59):
You know.
S4 (13:59):
It is what it is.
S2 (14:01):
Yeah. Okay. I think I got it now. There's a
lot of moving parts here. Let's do this. I'm going
to take a quick break. When we come back, I'll
give you my thoughts on on where we go from here. Uh,
it's a great question, Renee. You stay right there. A
lot more questions coming up. Russ. Lana. Betty. Coming your way.
Just a quick reminder. We're not here today, so don't
call in, but we're going to head to a break
and much more coming just after this. Stay with us.
S1 (14:34):
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. At.
S2 (14:46):
For the break, we were talking to Renee. Renee's got
a bit of a complicated situation. We're going to try
to navigate our way through it. Let me say, though,
at the outset, I'm not an attorney and these are
legal matters. So your best course of action, Renee, would
be to get legal counsel. But let's just talk generally
about your situation here. I mean, basically, Renee's father passed away.
He had a property. Um, he had a trust or
(15:10):
still does have a trust. His girlfriend, he was not
married to her, has a life estate on the property.
That just simply means she can live there for life.
Her son is the trustee. And the beneficiaries of this trust,
based on my understanding, are Renee or caller, her sister
and her brother. Um, so they are the future owners.
(15:30):
After the life estate ends and her siblings, Renee's siblings
want to take out a loan against the property, it
sounds like they have no intention of repaying it. Uh,
and Renee wants out. She basically disagrees with the risk. Um,
so first of all, Renee, I think it's important to
know that no loan should happen without trustee approval. So
the trustee, your dad's girlfriend son, must act in the
(15:53):
best interest of all the beneficiaries and follow the terms
of the trust. If the trust doesn't authorize loans, that's easy.
Or if it requires unanimous beneficiary approval, which would be
you and your siblings, then I would say, uh, the
trustee should not approve it because especially because there's no
plan to repay and or you would disagree with it. Um,
(16:14):
you know, you can't be forced into a loan you
don't agree with. Even if the other beneficiaries want to
borrow against the House, your share could be affected and
you have every right to object. You can also ask
for a formal trust accounting. Now, I realize this is
challenging because these are family members and that just always
complicates things. So I think one option would be you
could look at selling or your share, so you could
(16:38):
try to sell your beneficial interest to another party, including
your other siblings. Now they may say we don't have
the money or we don't have the interest in taking it.
You could ask the trustee or the court to divide
or sell the property. That would be the best option
because then you could get your interest out, they'd get
theirs and then go do with it what they want.
And then again, I'll come back to where I started here.
(17:00):
You really need legal help. If you believe the trustee
or your siblings are acting improperly, you need to consult
a trust or an estate attorney to protect your rights
and possibly block the loan. So those would be the
steps from here, if that makes sense to you.
S4 (17:17):
It does. And my final question is a friend of
mine found an insurance policy two years after their deceased
loved one. If that. Is that policy still viable?
S2 (17:29):
Uh, yes. I mean, those policies don't have a statute
of limitations. In fact, um, you know, they often you
can search for policies that are, you know, have been
sitting out there for a long time where they couldn't
find the beneficiary. And you can request to receive, uh, the,
the proceeds, um, from the, the insurance. So, yeah, I
(17:51):
would say she just needs to be able to prove, uh,
you know, who is entitled to that money and you
should be able to collect it.
S4 (17:58):
Awesome. I sure do appreciate your help. Thank you for
giving me all that information.
S2 (18:02):
You are very welcome. We appreciate your call today. God
bless you. Uh, let's go to Oregon. Hi, Betty. Go ahead.
S6 (18:08):
Thank you very much for taking my call. Yes, ma'am.
My situation is this I have a regular traditional IRA
with with stocks. And then I also have an IRA,
which with just precious metals, gold and silver. So when
they do the when they calculate the RMD. Uh, how
does that work? I don't want to have to sell
(18:31):
any of the precious metals to fulfill my RMD requirement.
I'd rather take what I have to pay from from
there out of my out of my stock IRA. I mean,
is that possible? How does that even get calculated? Do
you know?
S2 (18:45):
Yes I do. So basically a couple of moving parts here. Um,
with regard to the calculation, um, so the RMD is
applied to all traditional IRAs, including those holding the precious
metals like you've got. It's based on the total account
value as of December 31st of the previous year. And
(19:06):
then based on the IRA owner, you your life expectancy.
And that's found in the IRS tables. If the IRA
holds precious metals, the custodian generally provides that fair market
value of those metals as of December 31st. And that
usually comes from a third party pricing service based on
(19:26):
the spot prices as of that day. Um, and so
you'd have a couple of options, uh, you know, you
could sell the metals to medals to satisfy it. You
obviously don't want to do that. So the other option
is you can absolutely take the RMD from a different
IRA that holds stocks. As long as both are traditional IRAs,
you don't have to take them from their respective IRAs.
(19:49):
So that would allow you to calculate the RMD separately
for each account, but take the total required minimum from
just one. Or you could spread it across multiple accounts,
but you could avoid taking it from the the IRA
that holds the precious metals.
S6 (20:03):
Perfect. And they will determine what I owe each each IRA.
They'll determine say this is your this is your total.
You owe say 18 K in RMD.
S2 (20:16):
Well, yeah. But it's your responsibility to make sure that
you take out the proper amount. So typically they'll give
you the valuation. It's a little more difficult with precious
metals than it is with a stock portfolio. But nevertheless
they should be able to give you a valuation as
of December 31st. And then I would say you would want,
regardless of what they tell you, you'd want to either
(20:36):
yourself or your CPA to check and make sure based
on that valuation that you can document and the IRS
table that you're taking out the right amount for each IRA,
regardless of which IRA you ultimately pull it from.
S6 (20:52):
Okay. Okay. All right. All right. That's good. Okay. That's good.
That answers my question. Thank you so much for your help.
You guys are amazing.
S2 (20:59):
Thank you. Betty. Let me tell you though, don't miss
the charitable qualified charitable distribution. Are you aware of that?
S6 (21:06):
Yeah. You know what I'm doing? That I'm 70. This.
I'll be 71 in a month. But I did it
for the year last year, and I plan to continue
to do that just to try to mitigate the amount
that I'm going to pay in taxes.
S2 (21:21):
Yes, ma'am.
S6 (21:22):
So, yeah, thank you for reminding me.
S2 (21:24):
I love it. Well, it's one of my favorite tools.
So now that you're 70.5 or older, you have the
ability to not pay any tax on the amount that
you transfer directly to a charity and satisfy that required minimum. Betty,
thanks for your kind remarks about the program. We appreciate
your call. All right. We're going to head to a break,
so don't go anywhere. Still a lot more to come,
even though we're away from the studio today and you
(21:46):
shouldn't call in. We have some great questions that you're
really going to enjoy. As we continue to apply God's
wisdom to your financial decisions. We'll be right back. So
glad to have you with us today on Faith and
(22:06):
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
(22:29):
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 Faith. Com. All right.
Back to the phones we go. Wyoming is where Russ
(22:51):
is located. Go ahead sir.
S7 (22:53):
Hey, Rob, um, question for you here is that this
year we purchased two investment properties that we are thinking
about putting them into, uh, Airbnb, Vrbo type type situation
that we've never done before. Uh, my two questions is
this is should we kind of the risk, the concern
about liability. Should we have an LLC to do that? Um,
(23:16):
is there some liability insurance we should do just for,
you know, other people that are in your homes type situation,
then also to, um, to do a Vrbo, they want your,
Social Security number, I guess for tax reasons. Should we
do an Ein number as opposed to giving out the
Social Security number?
S2 (23:34):
Yeah. Great question. Um, so if you own the properties personally,
you can report the income under just your Social Security
number as a sole proprietor on schedule E of the
tax return. However, I would say it is smart to
get an Ein that's going to allow you to open
a business bank account, allow you to hire employees or contractors,
and then if you plan to form a business entity,
(23:56):
per your second question, like an LLC, you would need
that Ein. It's free and easy to get. Just go
to irs.gov. Now, what are the pros and cons of
an LLC? Well, it does provide that layer of liability protection.
If the LLC is properly maintained. It keeps your personal
assets separate from business assets, makes it easier to manage
(24:16):
the taxes and expenses and the ownership. There is some
setup in annual fees, uh, higher in some states than others.
You also need to carry adequate liability insurance. Um, to
your point, because LLCs aren't bulletproof. Uh, so that would
be important. And it doesn't reduce your taxes unless you're
taxed as a corporation, which would be pretty rare for
(24:38):
a rental property. But it does provide, you know, some
of those other benefits. So I would say, you know,
whether or not you form an LLC, make sure you
have a separate business bank account, keep really good records,
because we want to have clear separation between your personal
finances and the business, and then you're going to want
to carry strong short term rental insurance, you know, beyond
(25:00):
the homeowners insurance. Does that make sense?
S7 (25:02):
It does that that answers my question exactly. Thank you
very much. I really appreciate it.
S2 (25:07):
Absolutely, sir. We appreciate your call today. Uh, Lord bless you.
800 525 7000 is the number to call. Let's go
out to Arkansas. Hi, Lana. Go ahead.
S8 (25:16):
Yes. Um, I've got a couple of questions, but one
is we're thinking about adding on to our house. We've
already got the estimate, And the estimate is 94,000. Our
house is paid for. Everything's paid for. We have a
way to pay this off, which means pulling out of
an inherited IRA and pulling a $50,000 out of another
(25:39):
area that would also either one would have to pay
taxes on. So the question is, should we leave it
there and just borrow a home equity loan or take
that out? And that way we have no debt.
S2 (25:53):
Yeah. Yeah, it's a good question. Do you have just
a real conviction to be debt free, or are you
just trying to do what makes more sense on paper?
S8 (26:01):
I just don't like owing anything.
S2 (26:03):
Yeah. No, I get that.
S8 (26:05):
I hate owing anything. Uh, but. And this, this inherited
IRA that I am in is a stretch inherited RA.
So it's only depleted when it's gone. Um, and as
of right now, there's 92,000 in that. I was considering
pulling out 65. The other area my husband has is
(26:25):
a $50,000 that's invested, and he also has another $250,000
invested that we won't touch because he's retired, yet he's
still working. So we have retirement checks coming in plus,
so it's not. So we pulled the 50 and my 62.
We're going to pay taxes on that. But then we
come out not owing anything in the end. So I
(26:46):
don't know which is. There it is. There's that question.
S2 (26:48):
Well yeah it's a good one. And I think perhaps
there's something in the middle there that, you know, you
could look at, you could go ahead and get a
home equity line of credit. Remember, you're only going to
pay on what you owe for as long as you
owe it. And you reduce that line of credit by
paying back into it at any time. One thing you're
going to want to look at is just what are
the tax ramifications? You know, for instance, if you were
(27:10):
to take it all at once, it would undoubtedly push
at least a portion of that up into a higher bracket.
So I think you probably want to spread it out
at least over a couple of years, maybe even three.
And so I think that may make the case. And
I would work with your CPA on this to find
the sweet spot. But that may make the case. You
get the ire. Excuse me. You get the home equity
line of credit and the benefit there rather than the
(27:33):
home equity loan is, you know, once you pay it back,
it becomes available to you again if you needed it. Secondly,
it's a variable rate. And so as rates fall, your
home equity loan or excuse me, home equity line of
credit rate will come down with interest rates, which is
a good thing. Um, so what I would do is probably,
you know, maybe you pay for a third of it
(27:54):
out of out of one of these accounts. You know,
that you're going to take money out of anyway. Maybe
the inherited IRA, even though I realize you've got time
because it's a stretch. Um, but that way you don't
push it up into a higher bracket, and then maybe
you take it one year at a time, but perhaps
you reduce it by a third per year. Um, and
if you can fund, you know, a good bit of that, uh,
(28:16):
out of cash flow and minimize what you take out
of those investment accounts. That's even better. Does that make sense?
S8 (28:22):
Yeah. So the home equity line of credit. What is
that now how would I do that? Is that through
a bank. Is that what you're meaning?
S2 (28:28):
Yeah, absolutely. So there's really two types of home equity
loans where you're going in to pull cash out generally
for improvements. Um, and that's you know, generally what I
would recommend it for, I don't like it to pay
off debt and, you know, for lifestyle spending. But if
you're looking to improve the value of the home, that's
a good use of that equity. And a home equity
line of credit is essentially a line against the equity
(28:53):
in the house that becomes available to you. So at closing,
you wouldn't necessarily take any money out, but at any
point you could draw up to the line. So let's
say you get $100,000 line of credit against the house.
You know, it's it's prime plus, um, you know, maybe one. Um,
so that's the prime rate, you know, which right now
(29:13):
that prime rate is, is sitting at seven and a half.
So maybe it's at eight and a half. Um, and then,
you know, you could take two thirds of the, the 94,000, um,
you know, which would be, uh, 30, 60, 2000, maybe
a pull out of the line of credit. You take
a third of it from one of these, um, you know,
(29:33):
retirement accounts, and then, you know, you could pay it. Basically,
you just pay the interest, but you can prepay the
loan itself at any time if you want. And, um,
and then you would just eventually pay it all back.
S8 (29:45):
Okay, I got you. So. All right. So then the
other question I had forgot to tell the lady about
that I need to ask is I had talked with
the bank, the president of the bank that I bank with,
and I have a life insurance policy that is $350,000,
but it's in a cash value policy. I was never
crazy about it to begin with, but it is what
it is. And I've been in it for several years now.
It's got $12,000 in it, but I'm kind of like
(30:08):
the Dave Ramsey thought, I think I just need term
and that's it. And I've had breast cancer and I'm
out of it now for ten years. So do you
also recommend me getting out of that, getting a term
policy for another 1020 years?
S2 (30:24):
Well, what's the purpose of the insurance? Who's going to
be the beneficiary?
S8 (30:28):
The husband.
S2 (30:29):
Okay. And does he need it if you pass away?
Is there any kind of risk that's there for him?
He's not going to lose any income by you passing away,
is he?
S8 (30:38):
No. I mean, just my income. I do work, I'm
a hairstylist.
S2 (30:41):
Oh. You do?
S8 (30:42):
I do work, but.
S9 (30:43):
Okay.
S8 (30:44):
Yes. And he's 62. And fixing to work for another
four years. And I am 59, and I'll probably work
till I can't work.
S2 (30:52):
Got it. Okay, let's do this. I've got to take
a quick break. I'll give you my thoughts on the
other side. Stay there. We'll be right back. Great to
have you with us today on faith and finance live.
By the way, we're not live today. We're away from
the studio, so don't call in. But we have some
(31:12):
great questions that we lined up in advance, by the way,
this ministry is entirely listener supported. That means we rely
on your financial gifts and support to do what we
do on the air every day. If you consider a gift,
we'd certainly be grateful. Just head to our website. That's
faith.com and click the give button. Thanks in advance. All right,
(31:34):
let's head back to the phones. Uh, before the break,
we were talking to Lana. We were talking about a
home improvement project. Now she's asking, uh, as a second
question about some insurance. Essentially, she's got a $350,000, uh,
whole life insurance policy, cash value, whole life. She's been
in it for several years. She's got 12,000 built up
(31:55):
in cash value. She's had breast cancer, but has been
cancer free, I understand, for about ten years. She's 59,
works as a hairdresser and plans to continue to do
so as long as she can and brings people joy.
And I love that. I'm sure that's exactly what you do. Lana, um,
she's wondering if she should let that policy go, take
the cash value and replace it with a 10 or
(32:15):
20 year term policy. Um, you know, or perhaps, do
you know, hang on to it. And I would add
a third option. And that is do you need the
insurance at all? Because, you know, I think that the
questions are keep replace or drop. Um, you know, I
think the question as to do you still need life
insurance is a good one because, you know, the purpose
(32:36):
of life insurance is to provide for someone who's financially
dependent upon you. That could be a spouse or a child, probably,
you know, a spouse during our working years, uh, or
some people use it to leave a legacy. I'd rather
you not do that unless that's just really important to you.
I'm sure there's going to be plenty of assets for
(32:56):
you to leave behind. And I don't know that paying
for life insurance just for the purpose of leaving an
inheritance is necessarily a good thing. I mean, it's ultimately
your call. Other people will carry it specifically to pay
off certain debts or final expenses. But I would say
if no one relies on you financially. Then you don't
need the coverage necessarily. And basically what I'm saying there
(33:18):
is if you were to pass away, yes, your income
from your work as a hairdresser would go away. But
if that's not going to create a financial hardship for
your husband because he's got his retirement income, he's got
your assets, you know, your the lifestyle expenses related to you,
you know, are going away. And so I would suspect.
(33:39):
But tell me if I'm wrong. He would be just
fine if your income went away by you passing away.
And therefore he's not counting on life insurance to make
that up. Is that right?
S8 (33:51):
Yeah. Pretty much. I think that, you know, he's had
a friend for years that's just pushed life insurance and
the importance of it. So I think it's kind of
a hard thing to maybe convince that, yeah, it would
be me more if he passed away more than it
would be him with me.
S2 (34:06):
Right. And so what what policy does he have on
his life?
S8 (34:11):
His is a 250. Uh, I think he's got ten years.
S2 (34:15):
Okay. Ten years remaining. Yeah. Okay. Uh, so the idea
there would.
S8 (34:20):
We're going to have to renew that here soon. His
his is about to run out probably this end of year.
But he's had it and it's it is a term
is what I'm getting at.
S2 (34:28):
And what is his age?
S8 (34:31):
62.
S2 (34:33):
Okay. Yeah. I mean, so that's going to get pricey. Uh,
as you renew that ten year policy for a 62
year old male. But again, you know, it may be
that you're, you know, if you were to have a
plan that says, okay, ten years from now, based on
you continuing to work and put money away and the growth,
you know, the goal would be for you to get
to a place where this life insurance is no longer needed.
(34:55):
And I guess that's my question for you. Are we
already at that with regard to the policy on your life,
by the way, a $12,000 cash value is pretty modest
for a $350,000 face value policy, which likely means there's
high internal costs or its underperforming or its relatively new. Um, so,
you know, you could just stop paying it and let
(35:16):
it remain in force for a period of time. Or
you could go ahead and just pull the cash value
and drop it. But I think that's what I would
look at first. Now, if you just really feel like,
you know what, I want to have something on my life,
then I would say, just based on your age and
your health status, you're just going to have to count
the cost. Um, I would probably look at something no
(35:38):
more than ten years just because it's probably going to
be pretty cost prohibitive. And, you know, I would question
whether or not putting that same amount into a savings
account or an investment plan might ultimately be a better
option than what you give you all more flexibility to
be able to use that money down the road, as
opposed to you putting in a term policy that, again,
(35:59):
may not really be necessary and is probably going to
cost you, you know, 5 or $6000 a year or more.
S8 (36:08):
Right. And that's kind of what I was thinking. And yes,
it's not the cash value has not been paid because
just to pay for that insurance a year is $7,000
a year. And it's ridiculous. But it's supposed to build
cash value and it has not been funded that way. Yeah,
but so I was suggested to possibly look at more
putting money into an S&P 500 where the money builds
(36:29):
back more rather than into the life insurance.
S2 (36:32):
Well, I like that option better. I mean, ultimately, you're
the steward. You need to make the call, and you
and your husband need to talk through this and make
sure you've got a plan. You know, if you're gone.
But as long as you do. I like that better.
Where you'd put that money into something that can grow
and that you all can tap into, and you're not
paying the fees and the mortality expense. In this season
of life, especially since you have had cancer in the past.
S8 (36:54):
Yes. And that's what we were told is we're paying
fees and probably barely getting an interest. So. All right.
Thank you so much. You've helped me as much.
S2 (37:01):
You are so welcome. Thanks for calling today. Lord bless you. Uh.
Let's see. Let's head to, uh, Lewis in North Carolina.
Go right ahead.
S10 (37:09):
Hey. Thank you for taking my call. Uh, my question
has to do with the IRS. Um, I filed in
January 18th. They received it the 21st of January. And
to this date, I have not received a refund. And
(37:30):
I get the same answers, same runaround, that there's no
one I can talk to, that I probably made a
mistake on something, and they're reviewing it. Um, how much
is there to review when you're when you're claiming zero
and you're only claiming the standard deduction? It's really put
(37:52):
me in a bind and I don't know what to
do anymore.
S2 (37:56):
I'm so sorry, Louis. Um, did you file your taxes
electronically or a paper return electronically?
S10 (38:04):
Online? I've used the same company for the past ten
years and never had a problem.
S2 (38:11):
Yeah, yeah I understand. Um, have you used the. I
suspect you have, but just to be sure. Have you
used the tool on the IRS website called Where's My Refund?
S10 (38:22):
Yes. Where's my refund? Phone call. The ID me, the
government one. And I haven't received any other letters other
than this CP zero five and ID verification. I did
everything they told me to do and I can't get
no answers from nobody. First it's 60 days, then it's
(38:43):
90 days. Now it's 180 days. You're telling me I
got to wait till September? Wow. Meanwhile, I got my
mortgage company asking me what's going on, but how many
times can I explain it to these creditors? What's going on? My.
My wife's Social Security got suspended. You know, her social
security got suspended. I'm down to two days a week. Yeah.
S2 (39:08):
Yeah.
S10 (39:08):
And I'm just trying to stay above water.
S2 (39:11):
Yeah. No, I certainly understand. Um, have you reached out to.
There's something called a taxpayer advocate service. Have you heard
that term before?
S10 (39:21):
Um, no, I haven't.
S2 (39:23):
Okay. So if the delay, which it is, is creating
a financial hardship, um, you really should call the what's
called the Taxpayer Advocate Service. This is an independent arm
of the IRS that is for this purpose, to help
resolve serious issues. Um, they have local offices, um, and
(39:44):
they can intervene and push for a resolution if there's
a problem or a breakdown or they're unresponsive or just
not acting in your best interest. Again, if a hardship
is being created, which clearly there is. So I'd like
to give you that phone number and I'll give you
the website. But I would pursue that as your next option,
(40:06):
just because this will be somebody who will be on
your side of the table advocating for you. And, you know,
I think this is perhaps what is going to be
necessary to get this to resolution. Do you have a
pen handy?
S10 (40:19):
Yes. And I apologize for getting emotional.
S2 (40:22):
I totally understand the weight. That's that's on you. Louis
is not insignificant. And we're going to pray for you
here in just a moment. Here's the number for the
Taxpayer Advocate service. 87777774778. Let me say it again. (877)Â 777-4778.
(40:47):
And then the the website is taxpayer advocate.io.gov. Taxpayer advocate dot.
Dot gov.
S10 (41:02):
And, um.
S2 (41:03):
Yeah, that's that's where I would go next. Uh, to
be able to get in touch with somebody and perhaps
go into that local office there and, um, and there
will be one in your area that you can go
in and sit down with somebody face to face. And
they exist for this purpose, to make sure you get
fair treatment, to address system issues and to deal with
financial hardship. That's really why they're here. Uh, your tax
(41:27):
issue must fall into one of those three categories, and
clearly it does. Um, let me pray for you, uh, Lewis,
because I know you got a lot on you. Father, um,
we just lift up Lewis to you and his wife.
He's going through a lot right now. And, uh, Lord,
you are his provider. I just pray that you'd help
him to navigate this. Um. I pray that you'd connect
him with the right person. I pray that you would
(41:48):
help intervene and open doors to bring resolution. That he
could be made whole. And, Lord, that through your provision,
we would see you at work be able to give
you glory for that. But Lord, just be near to him.
I pray you encourage him today. Walk alongside him. Help
him to be reminded that you never leave us or
forsake us. And we're just going to leave him in
(42:10):
your hands. Lord, we tell you today we trust you
and we love you. We ask this in the matchless
name of Jesus. Amen. Hey, Lois, thanks for your call today.
We appreciate you being on the program, sir. Uh, keep
us posted on this. I'd love to know how this
turns out. And, uh, I'll continue to keep you in
my prayers, my friend. God bless you. Well, folks, it's
been a joy to be along with you today. Thanks
for inviting us into your story. What a joy it
(42:32):
is to encourage you with God's Word as you seek
to be that wise and faithful steward. Our goal that
you'd see God as your ultimate treasure. Let me say
thanks to my team today. I couldn't do it without him. Amy, Dan, Gabby, T,
and Jim. Faith and finance lives a partnership between Moody
Radio and Faith fi. Have a wonderful day and come
back and join us next time for another edition of
(42:54):
Faith and Finance live.
Today's version of faith and finance live is actually not live,
so don't call in.
S2 (00:08):
Have you ever faced an upcoming surgery? Not just anxious
about the procedure itself, but also wondering how you'll cover
the cost. Hi, I'm Rob West. Imagine if someone stepped
in to guide you through the process, coordinating the details,
and helping you navigate the expenses. Good news. That kind
of support is available and Lauren Gedeck is here to
(00:30):
tell us about it. Then we have some great calls
lined up. But we won't be taking your live calls
today because we're pre-recorded. This is faith in finance. Live.
Biblical wisdom for your financial journey. Lauren Gedeck is the
senior director of external affairs at Christian Healthcare Ministries, the
(00:52):
nation's longest serving faith based health cost sharing ministry and
a proud underwriter of this program. Lauren, great to have
you back.
S3 (01:01):
Thank you so much for having me.
S2 (01:03):
I know you've got some exciting news to share about
your new program, The Complete Surgical Care Solution. But before
we get to that, for listeners who may not be
familiar with Christian Healthcare Ministries, can you give us just
a quick overview?
S3 (01:17):
Yes, I absolutely can do that. Christian Healthcare Ministries has
been around for over 40 years. We are a biblically based,
nonprofit health cost sharing organization, so we help Christian believers
all over the United States with their medical bills. And
we have satisfied over $12 billion. That's billion with a
(01:41):
B over our history.
S2 (01:44):
Yeah. Well, and as I said a moment ago, the
longest serving of all the faith based health cost sharing
ministries and that 12 billion number speaks for itself. Lauren,
I want to dig into this new service from C.H.
we're excited to hear more. Tell us how it works.
S3 (02:02):
Yes, I'd be glad to. So we've introduced something called
Complete Surgical Care Solution. And what it is, is a
program that is at no extra cost to our members.
So if you join, you don't have to pay anything
extra for it. And it helps guide our members through
the process of having a surgery or procedure. Um, so
(02:27):
it's really almost like a curated experience where it's designed
to kind of hold your hand every step of the
way as you are looking at, you know, where do
I go for surgery and what am I supposed to
be doing? And you know what? What information is needed
and can, you know, take care of my bills. And
(02:48):
it's just very turnkey and very easy to do. And
like I said, you don't have to pay anything extra
or do anything besides be a member of Christian Healthcare Ministries.
S2 (03:01):
Wow. It sounds like a concierge service at no extra cost.
That's amazing. And I know stories can really help bring
this to life. I heard a story of a teenage
girl who needed hip surgery, and her family said she
felt like family through the process. Can you unpack that
a bit for us?
S3 (03:19):
Sure. Well, there was a young lady named Chloe who
was a softball player and had recurring pain in her
legs and hips. And finally they got connected with our
complete surgical care solution, and CSM was able to connect
her with a very high quality surgeon so she could
get a hip replacement. In addition, we were able to
(03:44):
help pay the cost of some of her travel. And
so that's one of the advantages of the surgical care solution.
And additionally, what happens a lot of the time is
not only does BHM receive a better price and the
patient receives better care, but the member can also be
(04:04):
eligible for a $1,250 credit against their out-of-pocket expenses. So
it's really a win win situation for Christian healthcare ministries,
for the doctor and especially for the patient.
S2 (04:20):
Well, that's exactly right. And I know in that specific case,
after the discounts are shared, over $145,000 in eligible medical bills,
which is amazing. Now, Lauren, what do members need to
know to be eligible for this?
S3 (04:34):
All they need is to have had a diagnosis from
their healthcare provider and a recommendation to have surgery. And
then if the procedure qualifies for our program, they just
contact us and Ketcham will take care of all the details.
S2 (04:50):
That is amazing. Lauren, thanks for being with us today.
We always appreciate your time.
S3 (04:54):
Thank you so much. Have a great day.
S2 (04:56):
Folks, if you're looking for a faith based cost sharing
ministry to help cover your medical bills is the longest
serving of all of them. You can learn more at. That's.
(05:17):
All right. We're going to head to a break, so
don't go anywhere. Still a lot more to come, even
though we're not here to take your calls live today.
But we have plenty of calls that we lined up
in advance. And we'll get to those just around the corner.
So thankful to have you with us today on Faith
and Finance live. I'm Rob West, by the way. Our
(05:38):
team is not here today. We're away from the studio,
so don't call in. But we've got some great questions
that we lined up in advance. We'll get to those
in just a bit. You know, I'm reminded as we
think about the role of money in our lives that
we need to counteract the messages of this world. We
need to operate from a biblical worldview. And when we
look to Scripture, I think we really see three big
(06:00):
ideas around the role of money. The first is money
is a tool. Yeah, we use it to buy things
for ourselves and others, and we use it to accomplish
God's purposes. But it's also a tool in the sense
that God uses money in my life to teach me
to rely on him. It's a daily demonstration of my faith.
It reveals where I've placed my trust and what I value.
(06:22):
So it's a tool. It's also a test. You know,
having too much or not enough can be a test.
Are we going to live with contentment? Will we choose contentment?
Are we going to rely on money in place of God?
It's a test in our lives, but it's also a testimony,
especially our willingness to trust God when we have little
or perhaps to share generously when we have much that
(06:45):
provides witness to an unbelieving world, even our faith to
handle money God's way in the midst of uncertain times.
That itself can be a great testimony to the world.
So money is a tool. It's also a test, and
it's a testimony that God uses to both provide for
my needs, as well as to grow me up in
(07:06):
my faith and rely more heavily on him. I hope
that's an encouragement to you today. Uh, before we head
to the phones in the news, uh, if you're planning
to borrow for college, some big changes are coming that
could affect how much you can take out and how
long you'll be paying it back as a part of
the one big, beautiful bill, the federal government is placing
new limits on Parent Plus and Grad Plus loans. These
(07:28):
programs historically allowed families and grad students to borrow almost
unlimited amounts. Starting this fall, the loans will be capped
at $20,000 per year, with a lifetime limit of $65,000
per child for parent plus borrowers, which still seems like
an awful lot. The changes are a part of a
(07:48):
broader federal effort to reduce long term debt burdens and
curb over borrowing that often leads to years, sometimes even decades,
of repayment hardship. Several loan forgiveness pathways are also being
phased out, with some programs ending in July 2027. Now,
critics say the caps will limit access to education, but
(08:11):
supporters argue they'll help families make more sustainable choices. I
will say that I think one of the reasons that
we've seen college tuition inflation outpacing or excuse me, outpacing
inflation across the board is because of the unlimited borrowing.
You know, it doesn't incent colleges to be thoughtful about
(08:34):
where they price their education, when basically you can borrow
as much as you want. And so I think this
leads to not only smarter decisions, hopefully by families that
are more sustainable, but also hopefully not the kind of
runaway college tuition inflation that we've been seeing over the
last several decades. Now, whether you think this is a
drastic fix or not nearly enough, it's at least a
(08:58):
start to ending the misery of paying off student loans
well into your 40s and 50s. We say, first of all,
if you can avoid borrowing altogether, do it. Let's find
other ways. You know, taking those dual enrollment classes or
AP classes, working hard, making sure you're applying for all
the scholarships and grants, perhaps getting an on campus job.
I did that my junior and senior year, and was
(09:20):
a way to cover my room and board as a
resident assistant, I worked on campus and managed. You won't
be surprised. The Christian radio station on campus, you know
there's opportunities to work in the summer, perhaps a paid internship.
My son has a paid internship here in Atlanta this summer,
getting great compensation, getting incredible experience in his pursuit, his
(09:43):
field of choice. And you know, he's going to graduate
with a little bit of a nest egg that he
can use. You could use that to apply to college
expenses as well. So don't just assume because it's available,
you need to borrow everything. Let's look for every other opportunity.
Now if you do borrow, I'd say kind of as
a rule of thumb. First of all, make sure you
don't borrow any more than you would have the ability
(10:06):
to repay based on real world salaries that go along
with your field of choice. So let's make sure those
things aren't out of step. But secondly, I would use
ten years as a reasonable payback period. If it's going
to take you a good bit longer than ten years,
perhaps you ought to stop and pull back and think
about other options. So hopefully those are some thoughts to
(10:27):
help you out today as you think about managing God's money,
borrowing as little as possible. Remember, borrowing is not a sin.
But there are clear warnings in Scripture about it. So
we need to heed that wise counsel. All right. We're
ready to dive into some questions today. We're going to
begin in Alabama. And Renee, you can go right ahead.
S4 (10:45):
Hi. Thank you for taking my call. Yeah, um, my
dad passed away this year in January, and he left
a will, but it was in a trust. And, um,
the house that he lived in in Illinois is in
that trust. But he gave a living word.
S2 (11:06):
A life estate, maybe.
S4 (11:08):
Yeah, yeah. Life estate for his, uh, unwanted girlfriend. And
we really don't want to have to incur, uh, keeping
the place up and paying taxes and so forth. So
how could we get out of it without creating a
(11:28):
lot of issues for everybody?
S2 (11:31):
Yeah. Uh, it's a great question. And, you know, it
sounds like you and your siblings are navigating a, uh,
a complex situation with shared responsibilities. Uh, if the life
estate is held in a trust with you and your siblings.
And is that your understanding?
S4 (11:48):
Yes, sir.
S2 (11:49):
Okay. Um, yeah. If that's the case, then as trustees,
you're all legally responsible for managing the property in the
best interest of the trust's beneficiary, likely the person with
the life estate. Um, now, is your father still living?
S5 (12:05):
No. He passed away this year.
S4 (12:07):
January.
S2 (12:08):
Okay. Yeah. So when the life estate ends, you know,
when the usually when the life tenant passes away. So
in this case, it would be your father. The property
goes to the remainderman often named in a trust. So
now the trust is the legal owner of the house.
The trustee then manages the property according to the trust terms.
And the beneficiary, likely you and your brother. The beneficiaries
(12:32):
share in the ownership benefits such as rental income or
sale proceeds. Um, so the trustee who is the trustee
on this trust? Do you know.
S5 (12:43):
The trustee.
S4 (12:44):
Is the girlfriend's son and the life estate is for
the girlfriend? They were never married. And it's not his child.
That's who he set up in the will. Okay. Um,
she she's the one with the life estate, and he is, um,
I guess, over the trust. I'm assuming he's over everything.
S2 (13:06):
Yeah.
S4 (13:06):
Yeah.
S2 (13:07):
Um, and so what is your, uh. Are you one
of the beneficiaries of the trust?
S4 (13:12):
Yes, I am. Me and my brother and sister, all three, uh,
have been are beneficiaries of the trust. And the way
we understand it is that our names would go on
the house since it was dad's house. And we're over
the trust.
S2 (13:30):
Yeah. Okay. Uh, did you say that the life estate
is for the girlfriend, so she's going to continue to
live in it. Is that right?
S4 (13:37):
Yes, sir.
S2 (13:38):
Okay. Um. And now tell me about your brother and
what he's wanting to do here.
S4 (13:43):
They were floating around the idea of of getting a
a loan and then just defaulting on it on the house.
S2 (13:52):
Oh, boy.
S4 (13:52):
I don't think that's a viable idea, but.
S2 (13:57):
No. Definitely not.
S5 (13:59):
You know.
S4 (13:59):
It is what it is.
S2 (14:01):
Yeah. Okay. I think I got it now. There's a
lot of moving parts here. Let's do this. I'm going
to take a quick break. When we come back, I'll
give you my thoughts on on where we go from here. Uh,
it's a great question, Renee. You stay right there. A
lot more questions coming up. Russ. Lana. Betty. Coming your way.
Just a quick reminder. We're not here today, so don't
call in, but we're going to head to a break
and much more coming just after this. Stay with us.
S1 (14:34):
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. At.
S2 (14:46):
For the break, we were talking to Renee. Renee's got
a bit of a complicated situation. We're going to try
to navigate our way through it. Let me say, though,
at the outset, I'm not an attorney and these are
legal matters. So your best course of action, Renee, would
be to get legal counsel. But let's just talk generally
about your situation here. I mean, basically, Renee's father passed away.
He had a property. Um, he had a trust or
(15:10):
still does have a trust. His girlfriend, he was not
married to her, has a life estate on the property.
That just simply means she can live there for life.
Her son is the trustee. And the beneficiaries of this trust,
based on my understanding, are Renee or caller, her sister
and her brother. Um, so they are the future owners.
(15:30):
After the life estate ends and her siblings, Renee's siblings
want to take out a loan against the property, it
sounds like they have no intention of repaying it. Uh,
and Renee wants out. She basically disagrees with the risk. Um,
so first of all, Renee, I think it's important to
know that no loan should happen without trustee approval. So
the trustee, your dad's girlfriend son, must act in the
(15:53):
best interest of all the beneficiaries and follow the terms
of the trust. If the trust doesn't authorize loans, that's easy.
Or if it requires unanimous beneficiary approval, which would be
you and your siblings, then I would say, uh, the
trustee should not approve it because especially because there's no
plan to repay and or you would disagree with it. Um,
(16:14):
you know, you can't be forced into a loan you
don't agree with. Even if the other beneficiaries want to
borrow against the House, your share could be affected and
you have every right to object. You can also ask
for a formal trust accounting. Now, I realize this is
challenging because these are family members and that just always
complicates things. So I think one option would be you
could look at selling or your share, so you could
(16:38):
try to sell your beneficial interest to another party, including
your other siblings. Now they may say we don't have
the money or we don't have the interest in taking it.
You could ask the trustee or the court to divide
or sell the property. That would be the best option
because then you could get your interest out, they'd get
theirs and then go do with it what they want.
And then again, I'll come back to where I started here.
(17:00):
You really need legal help. If you believe the trustee
or your siblings are acting improperly, you need to consult
a trust or an estate attorney to protect your rights
and possibly block the loan. So those would be the
steps from here, if that makes sense to you.
S4 (17:17):
It does. And my final question is a friend of
mine found an insurance policy two years after their deceased
loved one. If that. Is that policy still viable?
S2 (17:29):
Uh, yes. I mean, those policies don't have a statute
of limitations. In fact, um, you know, they often you
can search for policies that are, you know, have been
sitting out there for a long time where they couldn't
find the beneficiary. And you can request to receive, uh, the,
the proceeds, um, from the, the insurance. So, yeah, I
(17:51):
would say she just needs to be able to prove, uh,
you know, who is entitled to that money and you
should be able to collect it.
S4 (17:58):
Awesome. I sure do appreciate your help. Thank you for
giving me all that information.
S2 (18:02):
You are very welcome. We appreciate your call today. God
bless you. Uh, let's go to Oregon. Hi, Betty. Go ahead.
S6 (18:08):
Thank you very much for taking my call. Yes, ma'am.
My situation is this I have a regular traditional IRA
with with stocks. And then I also have an IRA,
which with just precious metals, gold and silver. So when
they do the when they calculate the RMD. Uh, how
does that work? I don't want to have to sell
(18:31):
any of the precious metals to fulfill my RMD requirement.
I'd rather take what I have to pay from from
there out of my out of my stock IRA. I mean,
is that possible? How does that even get calculated? Do
you know?
S2 (18:45):
Yes I do. So basically a couple of moving parts here. Um,
with regard to the calculation, um, so the RMD is
applied to all traditional IRAs, including those holding the precious
metals like you've got. It's based on the total account
value as of December 31st of the previous year. And
(19:06):
then based on the IRA owner, you your life expectancy.
And that's found in the IRS tables. If the IRA
holds precious metals, the custodian generally provides that fair market
value of those metals as of December 31st. And that
usually comes from a third party pricing service based on
(19:26):
the spot prices as of that day. Um, and so
you'd have a couple of options, uh, you know, you
could sell the metals to medals to satisfy it. You
obviously don't want to do that. So the other option
is you can absolutely take the RMD from a different
IRA that holds stocks. As long as both are traditional IRAs,
you don't have to take them from their respective IRAs.
(19:49):
So that would allow you to calculate the RMD separately
for each account, but take the total required minimum from
just one. Or you could spread it across multiple accounts,
but you could avoid taking it from the the IRA
that holds the precious metals.
S6 (20:03):
Perfect. And they will determine what I owe each each IRA.
They'll determine say this is your this is your total.
You owe say 18 K in RMD.
S2 (20:16):
Well, yeah. But it's your responsibility to make sure that
you take out the proper amount. So typically they'll give
you the valuation. It's a little more difficult with precious
metals than it is with a stock portfolio. But nevertheless
they should be able to give you a valuation as
of December 31st. And then I would say you would want,
regardless of what they tell you, you'd want to either
(20:36):
yourself or your CPA to check and make sure based
on that valuation that you can document and the IRS
table that you're taking out the right amount for each IRA,
regardless of which IRA you ultimately pull it from.
S6 (20:52):
Okay. Okay. All right. All right. That's good. Okay. That's good.
That answers my question. Thank you so much for your help.
You guys are amazing.
S2 (20:59):
Thank you. Betty. Let me tell you though, don't miss
the charitable qualified charitable distribution. Are you aware of that?
S6 (21:06):
Yeah. You know what I'm doing? That I'm 70. This.
I'll be 71 in a month. But I did it
for the year last year, and I plan to continue
to do that just to try to mitigate the amount
that I'm going to pay in taxes.
S2 (21:21):
Yes, ma'am.
S6 (21:22):
So, yeah, thank you for reminding me.
S2 (21:24):
I love it. Well, it's one of my favorite tools.
So now that you're 70.5 or older, you have the
ability to not pay any tax on the amount that
you transfer directly to a charity and satisfy that required minimum. Betty,
thanks for your kind remarks about the program. We appreciate
your call. All right. We're going to head to a break,
so don't go anywhere. Still a lot more to come,
even though we're away from the studio today and you
(21:46):
shouldn't call in. We have some great questions that you're
really going to enjoy. As we continue to apply God's
wisdom to your financial decisions. We'll be right back. So
glad to have you with us today on Faith and
(22:06):
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
(22:29):
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 Faith. Com. All right.
Back to the phones we go. Wyoming is where Russ
(22:51):
is located. Go ahead sir.
S7 (22:53):
Hey, Rob, um, question for you here is that this
year we purchased two investment properties that we are thinking
about putting them into, uh, Airbnb, Vrbo type type situation
that we've never done before. Uh, my two questions is
this is should we kind of the risk, the concern
about liability. Should we have an LLC to do that? Um,
(23:16):
is there some liability insurance we should do just for,
you know, other people that are in your homes type situation,
then also to, um, to do a Vrbo, they want your,
Social Security number, I guess for tax reasons. Should we
do an Ein number as opposed to giving out the
Social Security number?
S2 (23:34):
Yeah. Great question. Um, so if you own the properties personally,
you can report the income under just your Social Security
number as a sole proprietor on schedule E of the
tax return. However, I would say it is smart to
get an Ein that's going to allow you to open
a business bank account, allow you to hire employees or contractors,
and then if you plan to form a business entity,
(23:56):
per your second question, like an LLC, you would need
that Ein. It's free and easy to get. Just go
to irs.gov. Now, what are the pros and cons of
an LLC? Well, it does provide that layer of liability protection.
If the LLC is properly maintained. It keeps your personal
assets separate from business assets, makes it easier to manage
(24:16):
the taxes and expenses and the ownership. There is some
setup in annual fees, uh, higher in some states than others.
You also need to carry adequate liability insurance. Um, to
your point, because LLCs aren't bulletproof. Uh, so that would
be important. And it doesn't reduce your taxes unless you're
taxed as a corporation, which would be pretty rare for
(24:38):
a rental property. But it does provide, you know, some
of those other benefits. So I would say, you know,
whether or not you form an LLC, make sure you
have a separate business bank account, keep really good records,
because we want to have clear separation between your personal
finances and the business, and then you're going to want
to carry strong short term rental insurance, you know, beyond
(25:00):
the homeowners insurance. Does that make sense?
S7 (25:02):
It does that that answers my question exactly. Thank you
very much. I really appreciate it.
S2 (25:07):
Absolutely, sir. We appreciate your call today. Uh, Lord bless you.
800 525 7000 is the number to call. Let's go
out to Arkansas. Hi, Lana. Go ahead.
S8 (25:16):
Yes. Um, I've got a couple of questions, but one
is we're thinking about adding on to our house. We've
already got the estimate, And the estimate is 94,000. Our
house is paid for. Everything's paid for. We have a
way to pay this off, which means pulling out of
an inherited IRA and pulling a $50,000 out of another
(25:39):
area that would also either one would have to pay
taxes on. So the question is, should we leave it
there and just borrow a home equity loan or take
that out? And that way we have no debt.
S2 (25:53):
Yeah. Yeah, it's a good question. Do you have just
a real conviction to be debt free, or are you
just trying to do what makes more sense on paper?
S8 (26:01):
I just don't like owing anything.
S2 (26:03):
Yeah. No, I get that.
S8 (26:05):
I hate owing anything. Uh, but. And this, this inherited
IRA that I am in is a stretch inherited RA.
So it's only depleted when it's gone. Um, and as
of right now, there's 92,000 in that. I was considering
pulling out 65. The other area my husband has is
(26:25):
a $50,000 that's invested, and he also has another $250,000
invested that we won't touch because he's retired, yet he's
still working. So we have retirement checks coming in plus,
so it's not. So we pulled the 50 and my 62.
We're going to pay taxes on that. But then we
come out not owing anything in the end. So I
(26:46):
don't know which is. There it is. There's that question.
S2 (26:48):
Well yeah it's a good one. And I think perhaps
there's something in the middle there that, you know, you
could look at, you could go ahead and get a
home equity line of credit. Remember, you're only going to
pay on what you owe for as long as you
owe it. And you reduce that line of credit by
paying back into it at any time. One thing you're
going to want to look at is just what are
the tax ramifications? You know, for instance, if you were
(27:10):
to take it all at once, it would undoubtedly push
at least a portion of that up into a higher bracket.
So I think you probably want to spread it out
at least over a couple of years, maybe even three.
And so I think that may make the case. And
I would work with your CPA on this to find
the sweet spot. But that may make the case. You
get the ire. Excuse me. You get the home equity
line of credit and the benefit there rather than the
(27:33):
home equity loan is, you know, once you pay it back,
it becomes available to you again if you needed it. Secondly,
it's a variable rate. And so as rates fall, your
home equity loan or excuse me, home equity line of
credit rate will come down with interest rates, which is
a good thing. Um, so what I would do is probably,
you know, maybe you pay for a third of it
(27:54):
out of out of one of these accounts. You know,
that you're going to take money out of anyway. Maybe
the inherited IRA, even though I realize you've got time
because it's a stretch. Um, but that way you don't
push it up into a higher bracket, and then maybe
you take it one year at a time, but perhaps
you reduce it by a third per year. Um, and
if you can fund, you know, a good bit of that, uh,
(28:16):
out of cash flow and minimize what you take out
of those investment accounts. That's even better. Does that make sense?
S8 (28:22):
Yeah. So the home equity line of credit. What is
that now how would I do that? Is that through
a bank. Is that what you're meaning?
S2 (28:28):
Yeah, absolutely. So there's really two types of home equity
loans where you're going in to pull cash out generally
for improvements. Um, and that's you know, generally what I
would recommend it for, I don't like it to pay
off debt and, you know, for lifestyle spending. But if
you're looking to improve the value of the home, that's
a good use of that equity. And a home equity
line of credit is essentially a line against the equity
(28:53):
in the house that becomes available to you. So at closing,
you wouldn't necessarily take any money out, but at any
point you could draw up to the line. So let's
say you get $100,000 line of credit against the house.
You know, it's it's prime plus, um, you know, maybe one. Um,
so that's the prime rate, you know, which right now
(29:13):
that prime rate is, is sitting at seven and a half.
So maybe it's at eight and a half. Um, and then,
you know, you could take two thirds of the, the 94,000, um,
you know, which would be, uh, 30, 60, 2000, maybe
a pull out of the line of credit. You take
a third of it from one of these, um, you know,
(29:33):
retirement accounts, and then, you know, you could pay it. Basically,
you just pay the interest, but you can prepay the
loan itself at any time if you want. And, um,
and then you would just eventually pay it all back.
S8 (29:45):
Okay, I got you. So. All right. So then the
other question I had forgot to tell the lady about
that I need to ask is I had talked with
the bank, the president of the bank that I bank with,
and I have a life insurance policy that is $350,000,
but it's in a cash value policy. I was never
crazy about it to begin with, but it is what
it is. And I've been in it for several years now.
It's got $12,000 in it, but I'm kind of like
(30:08):
the Dave Ramsey thought, I think I just need term
and that's it. And I've had breast cancer and I'm
out of it now for ten years. So do you
also recommend me getting out of that, getting a term
policy for another 1020 years?
S2 (30:24):
Well, what's the purpose of the insurance? Who's going to
be the beneficiary?
S8 (30:28):
The husband.
S2 (30:29):
Okay. And does he need it if you pass away?
Is there any kind of risk that's there for him?
He's not going to lose any income by you passing away,
is he?
S8 (30:38):
No. I mean, just my income. I do work, I'm
a hairstylist.
S2 (30:41):
Oh. You do?
S8 (30:42):
I do work, but.
S9 (30:43):
Okay.
S8 (30:44):
Yes. And he's 62. And fixing to work for another
four years. And I am 59, and I'll probably work
till I can't work.
S2 (30:52):
Got it. Okay, let's do this. I've got to take
a quick break. I'll give you my thoughts on the
other side. Stay there. We'll be right back. Great to
have you with us today on faith and finance live.
By the way, we're not live today. We're away from
the studio, so don't call in. But we have some
(31:12):
great questions that we lined up in advance, by the way,
this ministry is entirely listener supported. That means we rely
on your financial gifts and support to do what we
do on the air every day. If you consider a gift,
we'd certainly be grateful. Just head to our website. That's
faith.com and click the give button. Thanks in advance. All right,
(31:34):
let's head back to the phones. Uh, before the break,
we were talking to Lana. We were talking about a
home improvement project. Now she's asking, uh, as a second
question about some insurance. Essentially, she's got a $350,000, uh,
whole life insurance policy, cash value, whole life. She's been
in it for several years. She's got 12,000 built up
(31:55):
in cash value. She's had breast cancer, but has been
cancer free, I understand, for about ten years. She's 59,
works as a hairdresser and plans to continue to do
so as long as she can and brings people joy.
And I love that. I'm sure that's exactly what you do. Lana, um,
she's wondering if she should let that policy go, take
the cash value and replace it with a 10 or
(32:15):
20 year term policy. Um, you know, or perhaps, do
you know, hang on to it. And I would add
a third option. And that is do you need the
insurance at all? Because, you know, I think that the
questions are keep replace or drop. Um, you know, I
think the question as to do you still need life
insurance is a good one because, you know, the purpose
(32:36):
of life insurance is to provide for someone who's financially
dependent upon you. That could be a spouse or a child, probably,
you know, a spouse during our working years, uh, or
some people use it to leave a legacy. I'd rather
you not do that unless that's just really important to you.
I'm sure there's going to be plenty of assets for
(32:56):
you to leave behind. And I don't know that paying
for life insurance just for the purpose of leaving an
inheritance is necessarily a good thing. I mean, it's ultimately
your call. Other people will carry it specifically to pay
off certain debts or final expenses. But I would say
if no one relies on you financially. Then you don't
need the coverage necessarily. And basically what I'm saying there
(33:18):
is if you were to pass away, yes, your income
from your work as a hairdresser would go away. But
if that's not going to create a financial hardship for
your husband because he's got his retirement income, he's got
your assets, you know, your the lifestyle expenses related to you,
you know, are going away. And so I would suspect.
(33:39):
But tell me if I'm wrong. He would be just
fine if your income went away by you passing away.
And therefore he's not counting on life insurance to make
that up. Is that right?
S8 (33:51):
Yeah. Pretty much. I think that, you know, he's had
a friend for years that's just pushed life insurance and
the importance of it. So I think it's kind of
a hard thing to maybe convince that, yeah, it would
be me more if he passed away more than it
would be him with me.
S2 (34:06):
Right. And so what what policy does he have on
his life?
S8 (34:11):
His is a 250. Uh, I think he's got ten years.
S2 (34:15):
Okay. Ten years remaining. Yeah. Okay. Uh, so the idea
there would.
S8 (34:20):
We're going to have to renew that here soon. His
his is about to run out probably this end of year.
But he's had it and it's it is a term
is what I'm getting at.
S2 (34:28):
And what is his age?
S8 (34:31):
62.
S2 (34:33):
Okay. Yeah. I mean, so that's going to get pricey. Uh,
as you renew that ten year policy for a 62
year old male. But again, you know, it may be
that you're, you know, if you were to have a
plan that says, okay, ten years from now, based on
you continuing to work and put money away and the growth,
you know, the goal would be for you to get
to a place where this life insurance is no longer needed.
(34:55):
And I guess that's my question for you. Are we
already at that with regard to the policy on your life,
by the way, a $12,000 cash value is pretty modest
for a $350,000 face value policy, which likely means there's
high internal costs or its underperforming or its relatively new. Um, so,
you know, you could just stop paying it and let
(35:16):
it remain in force for a period of time. Or
you could go ahead and just pull the cash value
and drop it. But I think that's what I would
look at first. Now, if you just really feel like,
you know what, I want to have something on my life,
then I would say, just based on your age and
your health status, you're just going to have to count
the cost. Um, I would probably look at something no
(35:38):
more than ten years just because it's probably going to
be pretty cost prohibitive. And, you know, I would question
whether or not putting that same amount into a savings
account or an investment plan might ultimately be a better
option than what you give you all more flexibility to
be able to use that money down the road, as
opposed to you putting in a term policy that, again,
(35:59):
may not really be necessary and is probably going to
cost you, you know, 5 or $6000 a year or more.
S8 (36:08):
Right. And that's kind of what I was thinking. And yes,
it's not the cash value has not been paid because
just to pay for that insurance a year is $7,000
a year. And it's ridiculous. But it's supposed to build
cash value and it has not been funded that way. Yeah,
but so I was suggested to possibly look at more
putting money into an S&P 500 where the money builds
(36:29):
back more rather than into the life insurance.
S2 (36:32):
Well, I like that option better. I mean, ultimately, you're
the steward. You need to make the call, and you
and your husband need to talk through this and make
sure you've got a plan. You know, if you're gone.
But as long as you do. I like that better.
Where you'd put that money into something that can grow
and that you all can tap into, and you're not
paying the fees and the mortality expense. In this season
of life, especially since you have had cancer in the past.
S8 (36:54):
Yes. And that's what we were told is we're paying
fees and probably barely getting an interest. So. All right.
Thank you so much. You've helped me as much.
S2 (37:01):
You are so welcome. Thanks for calling today. Lord bless you. Uh.
Let's see. Let's head to, uh, Lewis in North Carolina.
Go right ahead.
S10 (37:09):
Hey. Thank you for taking my call. Uh, my question
has to do with the IRS. Um, I filed in
January 18th. They received it the 21st of January. And
to this date, I have not received a refund. And
(37:30):
I get the same answers, same runaround, that there's no
one I can talk to, that I probably made a
mistake on something, and they're reviewing it. Um, how much
is there to review when you're when you're claiming zero
and you're only claiming the standard deduction? It's really put
(37:52):
me in a bind and I don't know what to
do anymore.
S2 (37:56):
I'm so sorry, Louis. Um, did you file your taxes
electronically or a paper return electronically?
S10 (38:04):
Online? I've used the same company for the past ten
years and never had a problem.
S2 (38:11):
Yeah, yeah I understand. Um, have you used the. I
suspect you have, but just to be sure. Have you
used the tool on the IRS website called Where's My Refund?
S10 (38:22):
Yes. Where's my refund? Phone call. The ID me, the
government one. And I haven't received any other letters other
than this CP zero five and ID verification. I did
everything they told me to do and I can't get
no answers from nobody. First it's 60 days, then it's
(38:43):
90 days. Now it's 180 days. You're telling me I
got to wait till September? Wow. Meanwhile, I got my
mortgage company asking me what's going on, but how many
times can I explain it to these creditors? What's going on? My.
My wife's Social Security got suspended. You know, her social
security got suspended. I'm down to two days a week. Yeah.
S2 (39:08):
Yeah.
S10 (39:08):
And I'm just trying to stay above water.
S2 (39:11):
Yeah. No, I certainly understand. Um, have you reached out to.
There's something called a taxpayer advocate service. Have you heard
that term before?
S10 (39:21):
Um, no, I haven't.
S2 (39:23):
Okay. So if the delay, which it is, is creating
a financial hardship, um, you really should call the what's
called the Taxpayer Advocate Service. This is an independent arm
of the IRS that is for this purpose, to help
resolve serious issues. Um, they have local offices, um, and
(39:44):
they can intervene and push for a resolution if there's
a problem or a breakdown or they're unresponsive or just
not acting in your best interest. Again, if a hardship
is being created, which clearly there is. So I'd like
to give you that phone number and I'll give you
the website. But I would pursue that as your next option,
(40:06):
just because this will be somebody who will be on
your side of the table advocating for you. And, you know,
I think this is perhaps what is going to be
necessary to get this to resolution. Do you have a
pen handy?
S10 (40:19):
Yes. And I apologize for getting emotional.
S2 (40:22):
I totally understand the weight. That's that's on you. Louis
is not insignificant. And we're going to pray for you
here in just a moment. Here's the number for the
Taxpayer Advocate service. 87777774778. Let me say it again. (877)Â 777-4778.
(40:47):
And then the the website is taxpayer advocate.io.gov. Taxpayer advocate dot.
Dot gov.
S10 (41:02):
And, um.
S2 (41:03):
Yeah, that's that's where I would go next. Uh, to
be able to get in touch with somebody and perhaps
go into that local office there and, um, and there
will be one in your area that you can go
in and sit down with somebody face to face. And
they exist for this purpose, to make sure you get
fair treatment, to address system issues and to deal with
financial hardship. That's really why they're here. Uh, your tax
(41:27):
issue must fall into one of those three categories, and
clearly it does. Um, let me pray for you, uh, Lewis,
because I know you got a lot on you. Father, um,
we just lift up Lewis to you and his wife.
He's going through a lot right now. And, uh, Lord,
you are his provider. I just pray that you'd help
him to navigate this. Um. I pray that you'd connect
him with the right person. I pray that you would
(41:48):
help intervene and open doors to bring resolution. That he
could be made whole. And, Lord, that through your provision,
we would see you at work be able to give
you glory for that. But Lord, just be near to him.
I pray you encourage him today. Walk alongside him. Help
him to be reminded that you never leave us or
forsake us. And we're just going to leave him in
(42:10):
your hands. Lord, we tell you today we trust you
and we love you. We ask this in the matchless
name of Jesus. Amen. Hey, Lois, thanks for your call today.
We appreciate you being on the program, sir. Uh, keep
us posted on this. I'd love to know how this
turns out. And, uh, I'll continue to keep you in
my prayers, my friend. God bless you. Well, folks, it's
been a joy to be along with you today. Thanks
for inviting us into your story. What a joy it
(42:32):
is to encourage you with God's Word as you seek
to be that wise and faithful steward. Our goal that
you'd see God as your ultimate treasure. Let me say
thanks to my team today. I couldn't do it without him. Amy, Dan, Gabby, T,
and Jim. Faith and finance lives a partnership between Moody
Radio and Faith fi. Have a wonderful day and come
back and join us next time for another edition of
(42:54):
Faith and Finance live.
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