December 1, 2025 • 42 mins
The holidays are meant to be a season of joy—but for many families, they also bring financial stress. Our desire to bless others often leads to spending more than we planned. On the next Faith & Finance Live, Rob West and Neile Simon share how we can give meaningfully, stay within our means and refocus on the true meaning of Christmas. Then, it’s on to calls. That’s Faith & Finance Live, biblical wisdom for your financial journey. That’s weekdays at 4pm Eastern/3pm Central on Moody Radio.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
S1 (00:08):
The holidays are meant to be a season of joy,
but for many families, they also bring financial stress that
lasts long after the decorations come down. Hi, I'm Rob West.
Our desire to bless others often leads to spending more
than we planned, but it doesn't have to be that way. Today,
Neil Simon joins us to share how you can give meaningfully.
(00:29):
Stay within your means and refocus on what Christmas is
truly about. And then it's on to your calls at
800 525 7000. This is faith and finance. Live. Biblical
wisdom for your financial decisions. Well, it's always a pleasure
to welcome back Neil Simon, certified credit counselor and director
(00:50):
of strategic partnerships at Christian Credit Counselors, one of our
longtime valued underwriters here at Faith by Neil. Really great
to have you back.
S2 (00:59):
Thank you. Rob, it's great to be here.
S1 (01:01):
Neely. As you well know, many people overspend at Christmas
with the best of intentions. They genuinely want to bless
others and make them happy. But where do you see
that good intention starting to go off the rails for
so many families.
S2 (01:14):
So we really do start from a good place. We
want to show love and be generous, but sometimes that
turns into thinking that we have to spend more to
show how much we care. And then you mix in
all the holiday sales, the credit card offers at the register,
and then those tempting buy now, pay later deals on
(01:35):
top of all the social media. And before you know it,
spending can get out of hand. And the tough part is,
the stress from all that shopping time and overspending tends
to stick around long after the decorations come down.
S1 (01:51):
Yeah, no doubt about it. So the heart's in the
right place, but the habits may need a little more
course correction. So how can families, Neely create a realistic plan.
Before the holiday season really kicks into gear.
S2 (02:03):
So you start by deciding what you can truly afford.
Make sure that you encompass everything that the holiday brings.
So it's gift giving, food, entertaining and travel. And then
set a total budget for your holiday spending. I also
tell people to use cash or a debit card whenever possible,
because when the money's gone, you're done and that's okay.
(02:26):
If you use credit cards, treat them as a tool,
not the enemy. They can help you track spending when
used wisely. And then just remember, at the end of
the day, a budget isn't about restriction. It's about peace
of mind. It gives you the freedom to enjoy the
season without the stress that can follow in January.
S1 (02:46):
I love that perspective, seeing budgeting as a path to
freedom rather than restriction. So when it comes to giving,
how can families keep it meaningful while still staying within
the healthy limits?
S2 (02:58):
So the best gifts are personal. They don't have to
be pricey. Handwritten notes are always something that's well received.
You can do baked goods, and what's important, really is
that you're having wonderful shared experiences. In our family, we
keep it simple and fun by setting a spending limit
and doing the white elephant exchange. Instead of having to
(03:21):
buy something for everyone, it takes the pressure off and
turns gift giving into a shared experience full of laughter
and memories. So focus on the togetherness over things. That's
what people really remember.
S1 (03:36):
There's no doubt about that. So nealy for families already
dealing with debt, what encouragement would you offer to help
them celebrate Christmas without adding to that burden?
S2 (03:46):
Give within your means, even if that means scaling back.
Because when you give responsibly, you protect your finances and
your peace. Think of it this way a relaxed, stress
free January is way better than stressing out after overspending
in December. And remember, you're also setting a good example.
(04:09):
Modeling stewardship and faith for your children.
S1 (04:14):
Neely, I'd love for you to finish today by just
refocusing us on the true meaning of Christmas amid all
the spending and celebration.
S2 (04:22):
Christmas is a celebration of Jesus, the greatest gift ever given.
When we center our hearts on him, love and grace
becomes the focus. Giving within our means allows us to
enjoy the season with joy and gratitude.
S1 (04:38):
Yeah, that's well said. You know, folks, when we spend
within our means and focus on Christ the greatest gift,
we find true peace and joy that lasts long after
the season ends. Neely, great to have you here.
S2 (04:49):
Thank you so much.
S1 (04:51):
Our guest today has been Neely Simon, certified credit counselor
and director of strategic partnerships at Christian Credit Counselors. Councillors. Folks,
if you feel weighed down by credit card or consumer debt,
Christian credit counselors can help. As a non-profit ministry, they
specialize in debt management, not consolidation, working directly with your
creditors to reduce interest rates and clear the path toward freedom.
(05:13):
Just go to Christian credit counselors. Christian counselors. We'll be
right back.
S3 (05:33):
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.
S1 (05:57):
Well, it's so great to have you with us today
on Faith and finance live. I'm Rob West, and I
trust you had a wonderful Thanksgiving and took an opportunity
to enjoy family and friends, to slow down, to recognize
all that we have, the abundance that we have beginning
with our identity in Christ, and the fact that he
has allowed us to be reconciled to God the Father
(06:20):
through what he did for us on the cross. And
when we place our trust in him for salvation, um,
we can enjoy that and that right relationship with God.
And then from that point forward, we're stewards, uh, we
have the opportunity to manage all that God has entrusted
to us, which includes, among other things, the financial resources
he's given us and so on. This program, we want
(06:42):
to help you think through how to manage money God's way.
And clearly, God has a lot to say about this
topic when we look to the scriptures. And so we
want to help you mind that, think it through and
apply it to your specific financial decisions and choices. So
with the things you have going on in your financial
life today, you can call right now. We'll begin taking
those calls here in just a few moments. That number
(07:05):
is 800 525 7000. That's 800 525 7000. Uh, before
we head to the phones today, though, let's build on
what Nealey shared in the first segment today, because in
the news, one of the more concerning trends this holiday
season is the growing pressure Americans feel to take on
(07:26):
new debt and in some cases, to solve short term
problems with risky long term moves. A recent MarketWatch story
highlighted a military retiree with more than $1 million in
retirement savings, who's considering raiding those accounts to wipe out
credit card debt. Now, it's an extreme example, but I
think it reflects the financial stress many families are feeling
(07:49):
right now. Holiday spending is colliding with high interest debt,
and many households are already burdened by credit card balances,
are finding it harder to avoid adding more during the
gift giving season. Nearly certainly weighed in on that today.
Beyond that, tapping retirement accounts is becoming a temptation. You know,
when cash flow is tight, withdrawing from IRAs or 401
(08:13):
S can seem like a quick fix, especially for large debts.
But it creates taxes, penalties in some cases and long
term setbacks. Also, short term pressure is overshadowing long term saving.
And so we need to take a look at that
long and hard. Because when budgets feel squeezed, it's easy
(08:33):
to focus on immediate relief and ignore the compounding damage
to future retirement income. Also, financial stress is emotional. Debt
can create fear and urgency that push people toward decisions
they'd never normally consider. So what is the better approach? Well,
it's to step back, take stock of the whole picture,
(08:56):
and create a plan that addresses debt without derailing long,
long term stability. And that's why a wise counselor, or
even our friends at Christian Credit Counselors can be a
great resource. Because if you find yourself in a position
where you've got some credit card debt, we don't want
to provide a quick fix. Here's what often happens. Often
(09:18):
you have the quick fix that takes the pressure off,
but we don't fix the underlying issues that cause the
debt in the first place. This doesn't apply in every situation,
but I've seen it more times than not. And so ultimately,
unless we do the hard work to right the issue,
which normally is living beyond our means, it's lifestyle spending
(09:40):
beyond our income. And unless we say no, we're going
to dial things back. We're going to get to a
place where that budget balances and we've not only got
enough to cover our expenses, we've got some margin at
the end of the month, and we're going to use
that margin at the at the beginning to go ahead
and build up that emergency fund, starting with one month
(10:01):
and then two and three all the way up to
six months worth of expenses. And by the way, that
emergency fund should truly be for emergencies, things that are unforeseen.
So we're talking an interruption in a job. So these
government employees that were furloughed back, uh, you know, uh,
a few weeks ago when we had the government shutdown,
that we couldn't have anticipated that if you've got a
(10:23):
car that's in perfectly good working order and all of
a sudden you lose a a transmission and it's perfectly
within its useful life. I mean, that would be unforeseen.
What shouldn't go out of that emergency fund are things
that we know are coming. We know tires are going
to have to be replaced on the car. We know
that eventually, you know, the appliances have a useful life
(10:45):
and things are going to need repair around the house.
So we've got to build in all of those things
into our regular budget so that we've got enough going
into savings separate from the emergency fund for the routine maintenance,
the wear and tear, and then keep that emergency fund
for things that are truly emergencies really essential. But once
(11:06):
you've done that, you know you're now on a path
to actually paying off that credit card debt and not
ever going back there again. But if you don't do
that hard work, that temporary fix, when you take out
of the retirement account and end up paying the taxes
on it, which you know is going to add another
20 to 30% on top of that, you might even
have a penalty if you're under 59.5. That's expensive money.
(11:31):
So we've got to do the hard work to get
your financial foundation in place, and that begins with spending
within your means. Now, what is the method by which,
once we do that hard work to pay off that
credit card debt? Well, that's where I really believe in
debt management, credit counseling. It really is the the best way,
in my view, for you to get on a path
(11:53):
toward paying that off. And the reason is you're not
taking out a new loan. It's not like debt consolidation
where you go and you you try to qualify for
a personal loan at the bank, or you take a
home equity loan, which then is going to secure the
debt to the house. I don't like that at all. No.
With credit counseling, the debt stays right where it is.
And the key is really two factors. One, the interest
(12:16):
rate is going to be dropped. So you're going to
go from an average of 22%, maybe somewhere approaching 30
all the way down to between 0 and 10%. That's
a game changer because now that same monthly payment, a
lot more is going to principal. The other big factor
with credit counseling is that you're going to have a
level payment. You see that minimum payment on the credit
(12:38):
card is tied to the balance. It's usually 3% of
the balance, which means it's going to get smaller every month.
And so if you only pay the minimum, well, that
declining payment is going to really string out that repayment
over a very long time. But if instead we set
a level monthly payment, then as that balance comes down,
(12:59):
because remember that interest rate was reduced. Now we're sending
a larger percentage of the remaining balance every month. The
combination of those two factors is going to help you
to pay it off 80% faster. So I would just
pause before you make any drastic decisions and let's make
the changes we need to to get on a better
(13:20):
financial footing, avoid taking on any new credit card debt,
and then get on a plan that's going to help
you pay it off once and for all. I hope
that helps. Hey, we're going to begin taking your calls
and questions after the break. And I know we're in
different rhythms this time of year. Some of you may be,
you know, working different hours. Maybe if, uh, you know,
you're home from school or college, uh, maybe you went
(13:43):
back today, and that's not till next week. But we
may have a little extra room for you today. So
if you have a financial question, today's the day to call.
Right after this break, we're going to begin taking those calls.
That number is 800 525 7000. Again that's 800 525 7000.
Whatever is on your mind today, we'd love to help
(14:04):
you tackle it when you call right now this is
faith and finance live. I'm Rob West. It's all biblical
wisdom for your financial decisions. And we've got a lot
more to come, so don't go anywhere. We'll be back
after this break. Stay with us. Hey, great to have
(14:32):
you with us today on Faith and Finance live. I'm
Rob West. We're taking your calls and questions. That number
800 525 7000. You can call right now. Let's go
down to Miami. Lillian, thanks for calling. Go ahead.
S4 (14:45):
Hi. Um, I have been retired for one year. I
received social security, GDP and pension. I understand that the
paying taxes, the deductions on Social Security are not mandatory
or voluntary. And I have been and I asked them
to deduct 12%, which I believe is average. Now I
(15:07):
would like to make some changes for next year. Should
I continue paying? Do you pay taxes on Social Security
and pension?
S1 (15:15):
Hmm. Yeah. Uh, you know, it really just comes down
to how much you earn. So the taxes are not voluntary.
If your income is high enough because you have a pension,
an IRA, withdrawals and investment income, the IRS requires you
to pay taxes on a portion of your Social Security benefits. Um,
(15:36):
up to 50% can be taxable. For some people. It
can go as high as 85%, uh, of your, um,
your tax Social Security benefits may be taxable. Um, so
it really depends on that total income. So what are
your income sources?
S4 (15:56):
Well, my Social Security and my pension before deductions. Of course,
before before they deduct the Medicare is about 3300.
S1 (16:06):
Okay. Got it. All right. So the only income you
have is the pension other than the Social Security benefits.
Is that right?
S4 (16:14):
Correct. Correct. Correct. Okay.
S1 (16:16):
Yeah. Um, and so you what you want to do
is you want to take your estimated amount for the year.
And so essentially, uh, if you receive that pension, all
of your all of that combined is what determines the
total amount that you're going to pay. So what will
(16:36):
you receive for 2026 in pension income?
S4 (16:42):
Well, 33 1012 over 36,000.
S1 (16:47):
Okay, 3300 a month. Is that what you're getting?
S4 (16:51):
Yes. Okay. Probably close to 40,000.
S1 (16:55):
Okay. Got it. Yeah. And so with 40,000, I'm just
going to look at the the brackets here for a second. Um,
it looks like that you will be paying, uh, I'm
trying to get 20, 25 up here, and I'm having
a little challenge getting the data. Here we go. Um, yeah.
(17:15):
So do you. Are you married, filing jointly, or do
you file single?
S4 (17:20):
I'm divorced. Single.
S1 (17:21):
Okay. Okay. Yeah. So if you're, um, you know, if
you have, let's say 40,000 in pension income and, uh,
you know, half of your Social Security benefits gets added
to that. So you're at 50,000 right there. So it
looks like about 85% of your Social Security will be taxable. Uh,
(17:43):
you're not taxed 85%, but 85% of your benefit Fit
gets added to your taxable income. Okay. So you would
basically take the 40,000 and then add 85% of your
Social Security benefit to that amount. And then that total
amount of the two would be what you would pay
(18:04):
taxes on for the year. Um, when you withheld 12%
for this year, um, or the prior year, was that enough?
Did you receive a refund or or did you owe something?
S4 (18:17):
No, because last year I, I worked until, until November.
So I had a salary. Social security started paying me
in February. I had a large income, even though I
pay ahead and everything. No, I owe. I owe under $500.
S1 (18:38):
Yeah, yeah. Okay. But, uh.
S4 (18:40):
Had a good salary. Have a good salary? I mean,
I'm sorry, salary and no pension, of course, but Social
Security is collecting it since last February. I mean.
S1 (18:51):
Okay.
S4 (18:52):
2024.
S1 (18:53):
Yeah, I would say that that should be enough. I mean,
typically 12% would be fine because with a $40,000 pension
and 85% of your Social Security, um, you know, being taxable,
let's say you got 20,000 a year. So that would
be 17,000 of that would be taxable. So you add
17,000 to your 40,000 pension. Your total taxable income is 57,000.
(19:19):
And then after the standard deduction you know you may
have 42,000. That's actually taxable. So for most retirees that
would mean that you're in the 12% federal tax bracket.
So I think that should be enough moving forward in
my estimation. If you wanted to know for sure, you
could get with a CPA to actually run the numbers
(19:39):
for you. But I think that's probably in the ballpark.
S4 (19:43):
Let me let me clarify something. I don't have a
$40,000 is no pension. 40,000 is combined social security and pension.
S1 (19:53):
Oh, okay. So it's even less. Yeah, that makes sense.
All right, so whatever your pension is, the total of that. Plus, um,
you know, somewhere between 50 and 85% of your Social
Security is the amount that you're going to be taxed on,
and then you get to take the deduction, the standard
deduction off of that. And so that's why I think
that 12% um is probably going to be just fine.
S4 (20:19):
So I should I should keep the 12%.
S1 (20:22):
I would yes. Just to make sure that you have
enough uh withheld. And you may find that you get
to the end of the year and you get a
refund and you could dial it back. The other thing
you could do would be to get with a CPA
to actually run the numbers based on your situation. But
I would, uh, you know, I think that the safe
thing to do would just be to keep the 12% going. Um,
(20:43):
and that should, you know, cover, up all the tax
that you owe and you're likely going to get something back,
but maybe not a whole lot.
S4 (20:52):
Yeah, my pension is 13, almost 1400. So we're talking
about over 12,000 a year.
S1 (21:00):
Okay. Uh, yeah. So that that's quite a bit less. Um,
so when you put all that together, um, you know,
that changes the picture. Uh, so you probably aren't going
to need that much because your Social Security becomes taxable
when your combined income crosses the $25,000 mark. And that's
(21:21):
going to be, you know, your pension plus half of
your Social Security. So let's say your Social Security is 20,000. Uh,
half of that's ten. You add that to your pension and, uh,
you may not need to have any withheld. Stay on
the line. We'll talk a bit more off the air,
but knowing that the pension was only half that, it
changes the picture quite a bit. So let me rerun
(21:43):
the numbers during the break here and we'll see if
maybe you don't need to have anything withheld. Stay right there, Lillian.
More calls right after this. Stay with us. Great to
have you with us today on faith and finance live.
We've got some lines open. If you have a financial question,
(22:05):
call right now 800 525 7000. That's 800 525 7000.
Let's go to Florida. Hi, Deborah. How can I help?
S5 (22:14):
Hi. Yes, I, uh, I'm a patient, a terminal patient. And, uh,
what my question was, I've had five surgeries within the
last three and a half years. Two was mistakes at
the hospital did. They shouldn't have done. And it led
to more serious what the question was. While I was
in the hospital with this last surgery two years ago,
(22:35):
the credit card company and the medical company, they teamed
up together and garnishes. What might I have left in
my pension? So that left me having to have to
borrow money from people to make it. And what I
did was sold the house that I had, and I
bought me a vehicle because I hadn't had 1 in
(22:57):
19 years. But anyway. Well, my question is, is that
with this last surgery I had, I lost 3.5ft of
my small intestines. So I got a terminal problem I'm
going to have with my bowels. I go to the
doctor at least every twice every week. I got five
doctors I don't want them to try to garnish here. Uh,
(23:20):
my little CD, I do have left because sometimes when
I can, when it's open, I'll pinch off of it
to help pay the doctors my copayments and stuff. My
medical is astronomical because when they when they went to
court the last time to do that, I couldn't respond
because I was on life support. After I got off
life support, they pushed me into a coma. So I
(23:41):
had nurses 24 seven when I did come home. And
when I found out about it, it was three months later.
So I said, let me present this because this is
all I got. It's a CD. It's very small. And
I'm wondering if I could take that and put it,
like in a trust, or what can I do to
protect that?
S1 (24:00):
Yeah. Yeah. Well, uh, I'm so sorry to hear about
what you've been through. I know you've been through a lot,
and it continues. And your medical, uh, challenges, not to
mention the cost associated with that. So I realize that's
a lot. And that's weighing on you. Uh, I wish
I had a better answer here. Um, you know, at
the end of the day, you really can't, quote, unquote,
(24:22):
hide money from creditors. Um, you know, moving money to
keep credit card companies from reaching it is a fraudulent transfer,
and that would make your situation much worse. Um, there
are places that creditors can't touch generally, and I'm not
an attorney. Ultimately, these are legal matters. And you could
get the advice of an attorney. Um, generally speaking, Social
(24:45):
Security is protected. So if your income is Social Security,
they can't garnish that except the IRS or for child
support or federal debts. A credit card company could not
garnish your Social Security. Um, and when it's deposited directly
into your bank account, it would be protected. Retirement accounts
are also protected funds in an IRA or a 401 K,
(25:07):
or a pension that's shielded from credit card companies. Um,
but bank accounts are not protected. And that would be
what the CD is considered. Uh, you know, even though
their funds are locked for a period of time, legally,
it's a deposit account, just like a checking or savings.
And so that, you know, that interest that you're earning, um,
(25:31):
you know, would be available to be frozen or garnished, um,
if there's a judgment against you. So the only things
that can protect you would be Social Security, retirement, some
disability benefits, certain things like that. Does that make sense though?
S5 (25:49):
Yeah, but I try to make payment arrangements with them,
but they don't want to take what I have. You know,
I told them I'll pay so much. They didn't they
didn't threaten me or anything, but I'm saying they got
their money from before. But what I'm saying now, I,
you know, I tried to work, you know, like when
I could part time and then, uh, what little money
(26:14):
I did make. I tried to pay off what I
could pay off. But the interest rate, they had so
much interest. Yeah. You know, even the hospital, like, if
you say, okay, I'll pay you twin, I'll pay this 120. So,
you know, that'll be like $200 a month. Yeah. They
don't want to do that.
S1 (26:32):
Yeah.
S5 (26:32):
So what do you do?
S1 (26:34):
Yeah, I totally understand. So it really depends on the
status of these accounts. I mean, normally if it's still
with the original creditor or collector, Elector, you would talk
to the recovery department, and they usually have in the
recovery department more flexibility to reduce the interest or settle
for less. You could also reach out to our friends
at Christian Credit Counselors. Um, you know, if they won't
(26:58):
work with you directly, they may work with a nonprofit
credit counseling agency that would allow the accounts to be
reimaged to get the interest rates down. And if you're
comfortable on the internet, you could go to Christian credit
counselors and see if they could help you, uh, roll
these into a credit counseling program. Um, you know, you
(27:19):
could ask for written verification. If the debt is old,
they have to be able to prove that it's valid
and collectible. Sometimes they can't. The debt becomes unenforceable. Um,
if they're threatening lawsuits, then you could talk to a
bankruptcy attorney for protection. But ultimately, what you don't want
to do is ignore it, because that just leads to
(27:40):
bigger problems. So I'd kind of lean in and see
if either a by getting to the recovery department or
getting involved with Christian credit counselors, or getting an attorney
to advise you if there's a judgment pending or being threatened,
you know, that would be the next step. So, Deborah,
I know this is challenging. We're going to ask our community,
be praying for you. I know you're going through a lot,
(28:01):
and if we can assist further along the way, don't
hesitate to reach out. Lord bless you. Uh, let's stay
in Florida. Bob. Go ahead.
S6 (28:08):
Hi. Uh, I am, uh, a retired federal agent. I
had a pension. My question really is based on. I
got a gift of. How would I say it? A
friend of mine died and left me his house. I
find that to be a gift, so I basically plan
on selling it. I'm probably net 160 out of it.
(28:28):
My my wife and I have been trying to get
debt free for a long time. So here's the deal.
We want to take phase 160. We want to pay
80 and 80. We don't want to throw it on
the mortgage, which is very small, 65,000 5000 at probably 3.5%.
So it doesn't hurt us at all. We don't want
to put it there. We want to put the 8080
on the credit cards, which is probably about 82 of all,
(28:49):
and on the equity line, which is probably like 90 something,
which is scary. We want to get rid of those two.
Number one by we got a letter today telling us
by November 26th that damn equity line is coming due.
It must have been three or 4 or 5 years,
I guess. I didn't even have not read it. Make
a long story short, I'm concerned they're planning on pulling
(29:09):
it by the end of the year, so I better
get that thing paid down. You know what I'm saying?
S1 (29:13):
Um, yeah. Yeah. So they're going to essentially close the line.
They're going to call the whole thing due, or they're
just going to close the line, and then it's an
amortized payment from there.
S6 (29:23):
That letter started. So it will become due and payable.
I mean that the whole amount whatever out there. So $95,000.
So I want to get rid of that thing. So
I put 80 on that and 80 on the other
on the uh um, the credit cards. And then uh, oh.
In the 80s, and I, we just want to burn them.
(29:44):
That's that was the biggest, uh, horrible thing I ever did.
But I did a lot of money. I sunk it
to this house that had to be renovated. And I'm
hoping for the best in the the the, uh, the
economy so bad that who knows what it'll sell quickly.
So I really put all my cash into that house.
You know what I'm saying?
S1 (30:02):
Yeah, yeah. Got it. Okay, well, at the end of
the day, when a HELOC comes due, the lender wants
the balance paid either all at once or over a
shorter repayment period. So I think using the the inheritance
to pay that down, uh, would, would avoid you having
to refinance. That's important. And then obviously we want to
get rid of those credit cards because those are at
(30:22):
a much higher interest rate. So I'm on board with
this plan. I'd love for you to hang on to
a little bit, but hopefully, uh, now with these gone,
you'll be able to put more in savings. We'll be
right back. Thanks for your call, Bob. Thanks for joining
us today on Faith and Finance Live I'm Rob West.
(30:43):
Well the market's selling off today. The Dow Jones closed
down nearly 1%. The S&P 500 off a half a point.
The Nasdaq down a little less than that. What's moving
the markets today. Well we'll find out. Bob Dole is here.
He's CIO and CEO at Crossmark Global Investments, a frequent
contributor on Fox business. And CNBC joins us each week
(31:06):
with his market commentary. Bob, what do you make of
the markets today?
S7 (31:10):
Uh, a little profit taking. As you know, we had
five days in a row. And, uh, that's a pretty
significant streak. And I think the market just said, uh,
had our Thanksgiving weekend. I'm a little tired. I'm going
to take a little rest. What's interesting, Rob, is what
went up the most technology, uh, etc. uh, went down
the least today. It was everything else that went down more.
(31:33):
So we'll be watching that as time goes by. But
the the faith in those As technology leaders continues.
S1 (31:41):
Yeah. Interesting. Uh, president, uh, the Treasury secretary is is
out today saying there's a quote, very good chance that
President Trump names a new fed chair before Christmas. Now,
Fed Chairman Powell's term goes through May. Right. So what's
involved here? Why is he doing this.
S7 (32:00):
Well it's I don't I don't like my current fed chair.
Let me name the new one long before he is
in control. Uh, so focus moves away from the guy.
Don't want in the chair to the guy. Do want
in the chair. That's what this is all about. And
we'll move from, uh, a guy who's pretty much center
of the road, uh, in, in our current fed chair
(32:20):
to someone who's far more dovish. And there's a lot
of people concerned. Uh, thankfully, there are other voting members
on the fed, as you know, Rob. And, uh, hopefully
they'll keep things on the straight and narrow.
S1 (32:33):
Bob, if you had to take a make a prediction
about what will happen this month when the fed meets.
Where do you think they'll land?
S7 (32:41):
Oh, boy. Um, as I've pointed out before, in the
last couple of weeks, the futures have been below 30%
for a cut to above 80% for a cut there
toward that higher end. Now. And, uh, so if the
vote gets held today, uh, they may they more likely
will cut than not. But if they don't, that wouldn't
surprise me because inflation is still running higher than they
(33:03):
would like. So they've got to do that delicate balancing act.
And uh, having lowered rates last month, might they take
a pass? I wish they would, but we'll see.
S1 (33:12):
Yeah. Very good. Bob, I know you, uh, in your
commentary this week, it was really insightful. And by the way, folks,
if you you don't receive, uh, Bob's commentary, Dole's deliberations weekly,
you should. It's available free. Just head to Crossmark Global.com
to sign up. But I know you've been thinking real
long term here, really looking at some of the the
global economic factors that will shape the next decade, you
(33:35):
want to just give us a kind of a flyover
of some of the themes you're watching.
S7 (33:39):
Yeah, China is a major player in the world, and
they're struggling a bit. I think they're going to struggle
some more. Um, the, uh, private sector has been deleveraging
that is paying down debt. That's probably going to end.
Uh deglobalization. All this talk about trade and tariffs and
so on means less trading with each other. That's deglobalization. Uh,
(34:04):
here in the US, we lead the way, but a
lot of other countries too, elevated government debt. Uh, that
is going to bite us at some point in time.
And the fifth inning with a positive artificial intelligence, lots
of good stuff happening there. Let's just hope we don't
get ahead of our skis in the market. On the
developments in that good space.
S1 (34:23):
Yeah, Bob, what about inflation kind of alongside all of
that that you just mentioned.
S7 (34:29):
Yeah. So you know we've been of the view. We
say it in our commentary, uh, at least once a month,
the probability of the United States inflation rate getting down
to the Fed's target of 2% absent a recession is
nearly zero. It's just not going to go there. So
many other forces now you might say is, you know, 2.8,
2.7 a big deal versus two. The fed wants two.
(34:52):
The market is discounting two. So if the stocks were
not so expensive I'd be less concerned about it. But
I think inflation is going to remain sticky.
S1 (35:00):
Yeah. So given those themes you just articulated, uh, does
that mean you believe that, uh, returns annualized returns will
be more tempered than what we've seen over the previous
decade or two?
S7 (35:13):
Yes. Even without the concern about inflation, the starting valuation
and the starting profit margins for corporate America, tell me
a lot of good stuff has happened in our returns
in recent years, and we're just going to have more
pedestrian returns. Doesn't mean we can't make money in the
stock market, Rob. It just means we're going to be
more careful and more patient.
S1 (35:34):
Yeah. Very good. All right, Bob, we appreciate you as always.
S7 (35:37):
Have a great week.
S1 (35:39):
Thanks for being here. That's Bob Dole. He's CEO and
CIO at Crossmark Global Investments. Joins us each week with
his market commentary. All right. Back to the phones, Chattanooga.
And how can I help?
S8 (35:51):
Well, I have a question about, uh, no penalty CDs.
I've heard you talk a lot about the, uh, high
yield savings and had decided to put some money in that.
And then I listened to you regularly, but recently have
not been able to listen to you. And but I've
started hearing about the no penalty CDs, so I don't
(36:14):
know if you've talked about those or not, but, uh,
is do I understand that correctly, that you buy the
CD for X number of months and your rate cannot
go down during that time, but I assume it cannot
go up during that time either. So is that, uh
(36:35):
is that? How does that compare with the, uh, high
yield savings as a place to.
S1 (36:43):
Yeah.
S8 (36:44):
Very good.
S1 (36:45):
It's a great question. And, um. Yeah, I mean, it
depends on the type of the CD. So no penalty
CDs typically have a fixed rate. And so once you
open a no penalty CD, the rate is locked in
for the entire term. So it doesn't go up or
down even if the market changes. So that's one of
the benefits is you get a guaranteed rate, but you
(37:08):
can still take the money out at any time, which is,
you know, one of the primary, uh, features, uh, right now,
you know, they're paying around 4% or so. You still
get the FDIC insurance. You would often get a higher
rate than most savings account, uh, most savings accounts. But
(37:29):
you've got the flexibility because you're not locked in for
6 or 12 months. So it's great for emergency funds
or short term savings because you don't have, you know,
that typical early withdrawal penalty, you typically have to keep
the money in for seven days, but after that you
can withdraw any time without any fee. Um, so, you know,
(37:50):
you could look around a lot of times people will say,
you know, because they're giving up a little bit of
yield in order to get that no penalty CD. They'd rather,
you know, get the higher rate and go ahead and
lock it up for a period of time and then
ladder it. Um, but if you really need that flexibility
and you can find a no penalty CD at like
(38:12):
ally Bank or Marcus or synchrony Bank, you could go
to Bankrate.com and do a search there. You know, it
is a nice feature. If you can beat the the
high yield savings and keep your liquidity. Does that make sense?
S8 (38:27):
Yes it does. Yes. And that was what I wanted
to be sure that it was clear about that. Yeah, well.
S1 (38:36):
I think it could be a good option. And, you know,
at the at the end of the day, the penalty
CDs usually pay a higher interest rate. So that's what
you're going to have to look at. And they're better
for long term savings. And people generally don't break the
CD as long as you plan properly. And maybe you
stagger them. You could do six months and 12 months
(38:57):
and then two years and then, you know, or 18
months and two years. So that way every six months
you've got a new tranche coming due. But if you
can plan well and get that yield up a little
bit higher, a lot of people say, I'm willing to
lock it up for a period of time for this reason,
but if you really need the access to it and
you can find one that's better than the savings, you
(39:18):
know that may be your best option because then you
can get to it at any time.
S8 (39:23):
Right? Yes, I do have some CDs that are laddered and, uh,
taking care of that, but, uh, this, this money, I
kind of want to keep more.
S1 (39:35):
Yes.
S8 (39:37):
More accessible.
S1 (39:39):
Yeah, I totally understand. So I would, I would shop around.
A great resource is Bankrate.com to find out who has
the best CD and savings rates and do some comparisons.
You could also go to Nerdwallet.com is another one. Um,
but I'm confident you can find something that's a good
fit for you that'll give you the safety you're looking
(39:59):
for and get you, you know, hopefully locked into these
rates before they head down even further. Uh, and thanks
for your call today. I appreciate you being on the
program and for being a regular listener. Lord bless you. Uh, Lisa,
in Chicago, unfortunately, we're not going to have time to
get to your question because I don't want to cut
you off. But let's see, maybe we can get you
scheduled for tomorrow's broadcast. I'd be delighted to chat with you.
(40:22):
The team. We'll see if we can get you scheduled
to be first up. Well, folks, we've covered a lot
of ground today. Let me just say thanks for being
on the program today. Thanks for listening and tuning in.
Also for those that called in, I also want to
say a big thanks to those of you who, here
at the end of the year, have been a part
of those that are funding Faith fi. You know, we're
(40:42):
listener supported and we're headed toward year end, and we
set a two month giving goal for November and December
of $175,000 to be able to close out our year
on budget. And some generous friends stepped up and said,
we'll match everything that comes in. So up to 175,000
(41:03):
for the months of November and December. Uh, every dollar
is matched. Well, the good news is, um, we've had
a great response. So in November, which just ended already,
80,000 of the 175 is in, which is really exciting.
That means a 95,000 to go. And we've got the
entire month of December to do it. So if you
(41:24):
love the program, maybe you listen regularly. Let me encourage
you head over to Faith. You can track our progress
throughout the month, and you can perhaps consider your own
contribution to the ministry. Again, every gift is doubled. Gifts
of every amount. And whenever you give any amount, you
(41:44):
will ensure that my new devotional, coming out early next
year will be mailed to your door. It's just one
of the ways that we'll say thank you again. The
website faithfully. That's faith. Com. Well, big thanks to my
team today Josh, Jim, Tyra, Omar and everybody here at
Faith by Faith in finance Live is a partnership between
(42:06):
Moody Radio and Faith. I hope you'll come back and
join us tomorrow. We'll do it all over again as
we try to provide biblical counsel for your financial decisions,
knowing you and I well, as stewards of God's money.
We have a high calling. We want to journey with
you and encourage you along the way. Come back and
join us and we'll see you. Bye bye.
The holidays are meant to be a season of joy,
but for many families, they also bring financial stress that
lasts long after the decorations come down. Hi, I'm Rob West.
Our desire to bless others often leads to spending more
than we planned, but it doesn't have to be that way. Today,
Neil Simon joins us to share how you can give meaningfully.
(00:29):
Stay within your means and refocus on what Christmas is
truly about. And then it's on to your calls at
800 525 7000. This is faith and finance. Live. Biblical
wisdom for your financial decisions. Well, it's always a pleasure
to welcome back Neil Simon, certified credit counselor and director
(00:50):
of strategic partnerships at Christian Credit Counselors, one of our
longtime valued underwriters here at Faith by Neil. Really great
to have you back.
S2 (00:59):
Thank you. Rob, it's great to be here.
S1 (01:01):
Neely. As you well know, many people overspend at Christmas
with the best of intentions. They genuinely want to bless
others and make them happy. But where do you see
that good intention starting to go off the rails for
so many families.
S2 (01:14):
So we really do start from a good place. We
want to show love and be generous, but sometimes that
turns into thinking that we have to spend more to
show how much we care. And then you mix in
all the holiday sales, the credit card offers at the register,
and then those tempting buy now, pay later deals on
(01:35):
top of all the social media. And before you know it,
spending can get out of hand. And the tough part is,
the stress from all that shopping time and overspending tends
to stick around long after the decorations come down.
S1 (01:51):
Yeah, no doubt about it. So the heart's in the
right place, but the habits may need a little more
course correction. So how can families, Neely create a realistic plan.
Before the holiday season really kicks into gear.
S2 (02:03):
So you start by deciding what you can truly afford.
Make sure that you encompass everything that the holiday brings.
So it's gift giving, food, entertaining and travel. And then
set a total budget for your holiday spending. I also
tell people to use cash or a debit card whenever possible,
because when the money's gone, you're done and that's okay.
(02:26):
If you use credit cards, treat them as a tool,
not the enemy. They can help you track spending when
used wisely. And then just remember, at the end of
the day, a budget isn't about restriction. It's about peace
of mind. It gives you the freedom to enjoy the
season without the stress that can follow in January.
S1 (02:46):
I love that perspective, seeing budgeting as a path to
freedom rather than restriction. So when it comes to giving,
how can families keep it meaningful while still staying within
the healthy limits?
S2 (02:58):
So the best gifts are personal. They don't have to
be pricey. Handwritten notes are always something that's well received.
You can do baked goods, and what's important, really is
that you're having wonderful shared experiences. In our family, we
keep it simple and fun by setting a spending limit
and doing the white elephant exchange. Instead of having to
(03:21):
buy something for everyone, it takes the pressure off and
turns gift giving into a shared experience full of laughter
and memories. So focus on the togetherness over things. That's
what people really remember.
S1 (03:36):
There's no doubt about that. So nealy for families already
dealing with debt, what encouragement would you offer to help
them celebrate Christmas without adding to that burden?
S2 (03:46):
Give within your means, even if that means scaling back.
Because when you give responsibly, you protect your finances and
your peace. Think of it this way a relaxed, stress
free January is way better than stressing out after overspending
in December. And remember, you're also setting a good example.
(04:09):
Modeling stewardship and faith for your children.
S1 (04:14):
Neely, I'd love for you to finish today by just
refocusing us on the true meaning of Christmas amid all
the spending and celebration.
S2 (04:22):
Christmas is a celebration of Jesus, the greatest gift ever given.
When we center our hearts on him, love and grace
becomes the focus. Giving within our means allows us to
enjoy the season with joy and gratitude.
S1 (04:38):
Yeah, that's well said. You know, folks, when we spend
within our means and focus on Christ the greatest gift,
we find true peace and joy that lasts long after
the season ends. Neely, great to have you here.
S2 (04:49):
Thank you so much.
S1 (04:51):
Our guest today has been Neely Simon, certified credit counselor
and director of strategic partnerships at Christian Credit Counselors. Councillors. Folks,
if you feel weighed down by credit card or consumer debt,
Christian credit counselors can help. As a non-profit ministry, they
specialize in debt management, not consolidation, working directly with your
creditors to reduce interest rates and clear the path toward freedom.
(05:13):
Just go to Christian credit counselors. Christian counselors. We'll be
right back.
S3 (05:33):
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.
S1 (05:57):
Well, it's so great to have you with us today
on Faith and finance live. I'm Rob West, and I
trust you had a wonderful Thanksgiving and took an opportunity
to enjoy family and friends, to slow down, to recognize
all that we have, the abundance that we have beginning
with our identity in Christ, and the fact that he
has allowed us to be reconciled to God the Father
(06:20):
through what he did for us on the cross. And
when we place our trust in him for salvation, um,
we can enjoy that and that right relationship with God.
And then from that point forward, we're stewards, uh, we
have the opportunity to manage all that God has entrusted
to us, which includes, among other things, the financial resources
he's given us and so on. This program, we want
(06:42):
to help you think through how to manage money God's way.
And clearly, God has a lot to say about this
topic when we look to the scriptures. And so we
want to help you mind that, think it through and
apply it to your specific financial decisions and choices. So
with the things you have going on in your financial
life today, you can call right now. We'll begin taking
those calls here in just a few moments. That number
(07:05):
is 800 525 7000. That's 800 525 7000. Uh, before
we head to the phones today, though, let's build on
what Nealey shared in the first segment today, because in
the news, one of the more concerning trends this holiday
season is the growing pressure Americans feel to take on
(07:26):
new debt and in some cases, to solve short term
problems with risky long term moves. A recent MarketWatch story
highlighted a military retiree with more than $1 million in
retirement savings, who's considering raiding those accounts to wipe out
credit card debt. Now, it's an extreme example, but I
think it reflects the financial stress many families are feeling
(07:49):
right now. Holiday spending is colliding with high interest debt,
and many households are already burdened by credit card balances,
are finding it harder to avoid adding more during the
gift giving season. Nearly certainly weighed in on that today.
Beyond that, tapping retirement accounts is becoming a temptation. You know,
when cash flow is tight, withdrawing from IRAs or 401
(08:13):
S can seem like a quick fix, especially for large debts.
But it creates taxes, penalties in some cases and long
term setbacks. Also, short term pressure is overshadowing long term saving.
And so we need to take a look at that
long and hard. Because when budgets feel squeezed, it's easy
(08:33):
to focus on immediate relief and ignore the compounding damage
to future retirement income. Also, financial stress is emotional. Debt
can create fear and urgency that push people toward decisions
they'd never normally consider. So what is the better approach? Well,
it's to step back, take stock of the whole picture,
(08:56):
and create a plan that addresses debt without derailing long,
long term stability. And that's why a wise counselor, or
even our friends at Christian Credit Counselors can be a
great resource. Because if you find yourself in a position
where you've got some credit card debt, we don't want
to provide a quick fix. Here's what often happens. Often
(09:18):
you have the quick fix that takes the pressure off,
but we don't fix the underlying issues that cause the
debt in the first place. This doesn't apply in every situation,
but I've seen it more times than not. And so ultimately,
unless we do the hard work to right the issue,
which normally is living beyond our means, it's lifestyle spending
(09:40):
beyond our income. And unless we say no, we're going
to dial things back. We're going to get to a
place where that budget balances and we've not only got
enough to cover our expenses, we've got some margin at
the end of the month, and we're going to use
that margin at the at the beginning to go ahead
and build up that emergency fund, starting with one month
(10:01):
and then two and three all the way up to
six months worth of expenses. And by the way, that
emergency fund should truly be for emergencies, things that are unforeseen.
So we're talking an interruption in a job. So these
government employees that were furloughed back, uh, you know, uh,
a few weeks ago when we had the government shutdown,
that we couldn't have anticipated that if you've got a
(10:23):
car that's in perfectly good working order and all of
a sudden you lose a a transmission and it's perfectly
within its useful life. I mean, that would be unforeseen.
What shouldn't go out of that emergency fund are things
that we know are coming. We know tires are going
to have to be replaced on the car. We know
that eventually, you know, the appliances have a useful life
(10:45):
and things are going to need repair around the house.
So we've got to build in all of those things
into our regular budget so that we've got enough going
into savings separate from the emergency fund for the routine maintenance,
the wear and tear, and then keep that emergency fund
for things that are truly emergencies really essential. But once
(11:06):
you've done that, you know you're now on a path
to actually paying off that credit card debt and not
ever going back there again. But if you don't do
that hard work, that temporary fix, when you take out
of the retirement account and end up paying the taxes
on it, which you know is going to add another
20 to 30% on top of that, you might even
have a penalty if you're under 59.5. That's expensive money.
(11:31):
So we've got to do the hard work to get
your financial foundation in place, and that begins with spending
within your means. Now, what is the method by which,
once we do that hard work to pay off that
credit card debt? Well, that's where I really believe in
debt management, credit counseling. It really is the the best way,
in my view, for you to get on a path
(11:53):
toward paying that off. And the reason is you're not
taking out a new loan. It's not like debt consolidation
where you go and you you try to qualify for
a personal loan at the bank, or you take a
home equity loan, which then is going to secure the
debt to the house. I don't like that at all. No.
With credit counseling, the debt stays right where it is.
And the key is really two factors. One, the interest
(12:16):
rate is going to be dropped. So you're going to
go from an average of 22%, maybe somewhere approaching 30
all the way down to between 0 and 10%. That's
a game changer because now that same monthly payment, a
lot more is going to principal. The other big factor
with credit counseling is that you're going to have a
level payment. You see that minimum payment on the credit
(12:38):
card is tied to the balance. It's usually 3% of
the balance, which means it's going to get smaller every month.
And so if you only pay the minimum, well, that
declining payment is going to really string out that repayment
over a very long time. But if instead we set
a level monthly payment, then as that balance comes down,
(12:59):
because remember that interest rate was reduced. Now we're sending
a larger percentage of the remaining balance every month. The
combination of those two factors is going to help you
to pay it off 80% faster. So I would just
pause before you make any drastic decisions and let's make
the changes we need to to get on a better
(13:20):
financial footing, avoid taking on any new credit card debt,
and then get on a plan that's going to help
you pay it off once and for all. I hope
that helps. Hey, we're going to begin taking your calls
and questions after the break. And I know we're in
different rhythms this time of year. Some of you may be,
you know, working different hours. Maybe if, uh, you know,
you're home from school or college, uh, maybe you went
(13:43):
back today, and that's not till next week. But we
may have a little extra room for you today. So
if you have a financial question, today's the day to call.
Right after this break, we're going to begin taking those calls.
That number is 800 525 7000. Again that's 800 525 7000.
Whatever is on your mind today, we'd love to help
(14:04):
you tackle it when you call right now this is
faith and finance live. I'm Rob West. It's all biblical
wisdom for your financial decisions. And we've got a lot
more to come, so don't go anywhere. We'll be back
after this break. Stay with us. Hey, great to have
(14:32):
you with us today on Faith and Finance live. I'm
Rob West. We're taking your calls and questions. That number
800 525 7000. You can call right now. Let's go
down to Miami. Lillian, thanks for calling. Go ahead.
S4 (14:45):
Hi. Um, I have been retired for one year. I
received social security, GDP and pension. I understand that the
paying taxes, the deductions on Social Security are not mandatory
or voluntary. And I have been and I asked them
to deduct 12%, which I believe is average. Now I
(15:07):
would like to make some changes for next year. Should
I continue paying? Do you pay taxes on Social Security
and pension?
S1 (15:15):
Hmm. Yeah. Uh, you know, it really just comes down
to how much you earn. So the taxes are not voluntary.
If your income is high enough because you have a pension,
an IRA, withdrawals and investment income, the IRS requires you
to pay taxes on a portion of your Social Security benefits. Um,
(15:36):
up to 50% can be taxable. For some people. It
can go as high as 85%, uh, of your, um,
your tax Social Security benefits may be taxable. Um, so
it really depends on that total income. So what are
your income sources?
S4 (15:56):
Well, my Social Security and my pension before deductions. Of course,
before before they deduct the Medicare is about 3300.
S1 (16:06):
Okay. Got it. All right. So the only income you
have is the pension other than the Social Security benefits.
Is that right?
S4 (16:14):
Correct. Correct. Correct. Okay.
S1 (16:16):
Yeah. Um, and so you what you want to do
is you want to take your estimated amount for the year.
And so essentially, uh, if you receive that pension, all
of your all of that combined is what determines the
total amount that you're going to pay. So what will
(16:36):
you receive for 2026 in pension income?
S4 (16:42):
Well, 33 1012 over 36,000.
S1 (16:47):
Okay, 3300 a month. Is that what you're getting?
S4 (16:51):
Yes. Okay. Probably close to 40,000.
S1 (16:55):
Okay. Got it. Yeah. And so with 40,000, I'm just
going to look at the the brackets here for a second. Um,
it looks like that you will be paying, uh, I'm
trying to get 20, 25 up here, and I'm having
a little challenge getting the data. Here we go. Um, yeah.
(17:15):
So do you. Are you married, filing jointly, or do
you file single?
S4 (17:20):
I'm divorced. Single.
S1 (17:21):
Okay. Okay. Yeah. So if you're, um, you know, if
you have, let's say 40,000 in pension income and, uh,
you know, half of your Social Security benefits gets added
to that. So you're at 50,000 right there. So it
looks like about 85% of your Social Security will be taxable. Uh,
(17:43):
you're not taxed 85%, but 85% of your benefit Fit
gets added to your taxable income. Okay. So you would
basically take the 40,000 and then add 85% of your
Social Security benefit to that amount. And then that total
amount of the two would be what you would pay
(18:04):
taxes on for the year. Um, when you withheld 12%
for this year, um, or the prior year, was that enough?
Did you receive a refund or or did you owe something?
S4 (18:17):
No, because last year I, I worked until, until November.
So I had a salary. Social security started paying me
in February. I had a large income, even though I
pay ahead and everything. No, I owe. I owe under $500.
S1 (18:38):
Yeah, yeah. Okay. But, uh.
S4 (18:40):
Had a good salary. Have a good salary? I mean,
I'm sorry, salary and no pension, of course, but Social
Security is collecting it since last February. I mean.
S1 (18:51):
Okay.
S4 (18:52):
2024.
S1 (18:53):
Yeah, I would say that that should be enough. I mean,
typically 12% would be fine because with a $40,000 pension
and 85% of your Social Security, um, you know, being taxable,
let's say you got 20,000 a year. So that would
be 17,000 of that would be taxable. So you add
17,000 to your 40,000 pension. Your total taxable income is 57,000.
(19:19):
And then after the standard deduction you know you may
have 42,000. That's actually taxable. So for most retirees that
would mean that you're in the 12% federal tax bracket.
So I think that should be enough moving forward in
my estimation. If you wanted to know for sure, you
could get with a CPA to actually run the numbers
(19:39):
for you. But I think that's probably in the ballpark.
S4 (19:43):
Let me let me clarify something. I don't have a
$40,000 is no pension. 40,000 is combined social security and pension.
S1 (19:53):
Oh, okay. So it's even less. Yeah, that makes sense.
All right, so whatever your pension is, the total of that. Plus, um,
you know, somewhere between 50 and 85% of your Social
Security is the amount that you're going to be taxed on,
and then you get to take the deduction, the standard
deduction off of that. And so that's why I think
that 12% um is probably going to be just fine.
S4 (20:19):
So I should I should keep the 12%.
S1 (20:22):
I would yes. Just to make sure that you have
enough uh withheld. And you may find that you get
to the end of the year and you get a
refund and you could dial it back. The other thing
you could do would be to get with a CPA
to actually run the numbers based on your situation. But
I would, uh, you know, I think that the safe
thing to do would just be to keep the 12% going. Um,
(20:43):
and that should, you know, cover, up all the tax
that you owe and you're likely going to get something back,
but maybe not a whole lot.
S4 (20:52):
Yeah, my pension is 13, almost 1400. So we're talking
about over 12,000 a year.
S1 (21:00):
Okay. Uh, yeah. So that that's quite a bit less. Um,
so when you put all that together, um, you know,
that changes the picture. Uh, so you probably aren't going
to need that much because your Social Security becomes taxable
when your combined income crosses the $25,000 mark. And that's
(21:21):
going to be, you know, your pension plus half of
your Social Security. So let's say your Social Security is 20,000. Uh,
half of that's ten. You add that to your pension and, uh,
you may not need to have any withheld. Stay on
the line. We'll talk a bit more off the air,
but knowing that the pension was only half that, it
changes the picture quite a bit. So let me rerun
(21:43):
the numbers during the break here and we'll see if
maybe you don't need to have anything withheld. Stay right there, Lillian.
More calls right after this. Stay with us. Great to
have you with us today on faith and finance live.
We've got some lines open. If you have a financial question,
(22:05):
call right now 800 525 7000. That's 800 525 7000.
Let's go to Florida. Hi, Deborah. How can I help?
S5 (22:14):
Hi. Yes, I, uh, I'm a patient, a terminal patient. And, uh,
what my question was, I've had five surgeries within the
last three and a half years. Two was mistakes at
the hospital did. They shouldn't have done. And it led
to more serious what the question was. While I was
in the hospital with this last surgery two years ago,
(22:35):
the credit card company and the medical company, they teamed
up together and garnishes. What might I have left in
my pension? So that left me having to have to
borrow money from people to make it. And what I
did was sold the house that I had, and I
bought me a vehicle because I hadn't had 1 in
(22:57):
19 years. But anyway. Well, my question is, is that
with this last surgery I had, I lost 3.5ft of
my small intestines. So I got a terminal problem I'm
going to have with my bowels. I go to the
doctor at least every twice every week. I got five
doctors I don't want them to try to garnish here. Uh,
(23:20):
my little CD, I do have left because sometimes when
I can, when it's open, I'll pinch off of it
to help pay the doctors my copayments and stuff. My
medical is astronomical because when they when they went to
court the last time to do that, I couldn't respond
because I was on life support. After I got off
life support, they pushed me into a coma. So I
(23:41):
had nurses 24 seven when I did come home. And
when I found out about it, it was three months later.
So I said, let me present this because this is
all I got. It's a CD. It's very small. And
I'm wondering if I could take that and put it,
like in a trust, or what can I do to
protect that?
S1 (24:00):
Yeah. Yeah. Well, uh, I'm so sorry to hear about
what you've been through. I know you've been through a lot,
and it continues. And your medical, uh, challenges, not to
mention the cost associated with that. So I realize that's
a lot. And that's weighing on you. Uh, I wish
I had a better answer here. Um, you know, at
the end of the day, you really can't, quote, unquote,
(24:22):
hide money from creditors. Um, you know, moving money to
keep credit card companies from reaching it is a fraudulent transfer,
and that would make your situation much worse. Um, there
are places that creditors can't touch generally, and I'm not
an attorney. Ultimately, these are legal matters. And you could
get the advice of an attorney. Um, generally speaking, Social
(24:45):
Security is protected. So if your income is Social Security,
they can't garnish that except the IRS or for child
support or federal debts. A credit card company could not
garnish your Social Security. Um, and when it's deposited directly
into your bank account, it would be protected. Retirement accounts
are also protected funds in an IRA or a 401 K,
(25:07):
or a pension that's shielded from credit card companies. Um,
but bank accounts are not protected. And that would be
what the CD is considered. Uh, you know, even though
their funds are locked for a period of time, legally,
it's a deposit account, just like a checking or savings.
And so that, you know, that interest that you're earning, um,
(25:31):
you know, would be available to be frozen or garnished, um,
if there's a judgment against you. So the only things
that can protect you would be Social Security, retirement, some
disability benefits, certain things like that. Does that make sense though?
S5 (25:49):
Yeah, but I try to make payment arrangements with them,
but they don't want to take what I have. You know,
I told them I'll pay so much. They didn't they
didn't threaten me or anything, but I'm saying they got
their money from before. But what I'm saying now, I,
you know, I tried to work, you know, like when
I could part time and then, uh, what little money
(26:14):
I did make. I tried to pay off what I
could pay off. But the interest rate, they had so
much interest. Yeah. You know, even the hospital, like, if
you say, okay, I'll pay you twin, I'll pay this 120. So,
you know, that'll be like $200 a month. Yeah. They
don't want to do that.
S1 (26:32):
Yeah.
S5 (26:32):
So what do you do?
S1 (26:34):
Yeah, I totally understand. So it really depends on the
status of these accounts. I mean, normally if it's still
with the original creditor or collector, Elector, you would talk
to the recovery department, and they usually have in the
recovery department more flexibility to reduce the interest or settle
for less. You could also reach out to our friends
at Christian Credit Counselors. Um, you know, if they won't
(26:58):
work with you directly, they may work with a nonprofit
credit counseling agency that would allow the accounts to be
reimaged to get the interest rates down. And if you're
comfortable on the internet, you could go to Christian credit
counselors and see if they could help you, uh, roll
these into a credit counseling program. Um, you know, you
(27:19):
could ask for written verification. If the debt is old,
they have to be able to prove that it's valid
and collectible. Sometimes they can't. The debt becomes unenforceable. Um,
if they're threatening lawsuits, then you could talk to a
bankruptcy attorney for protection. But ultimately, what you don't want
to do is ignore it, because that just leads to
(27:40):
bigger problems. So I'd kind of lean in and see
if either a by getting to the recovery department or
getting involved with Christian credit counselors, or getting an attorney
to advise you if there's a judgment pending or being threatened,
you know, that would be the next step. So, Deborah,
I know this is challenging. We're going to ask our community,
be praying for you. I know you're going through a lot,
(28:01):
and if we can assist further along the way, don't
hesitate to reach out. Lord bless you. Uh, let's stay
in Florida. Bob. Go ahead.
S6 (28:08):
Hi. Uh, I am, uh, a retired federal agent. I
had a pension. My question really is based on. I
got a gift of. How would I say it? A
friend of mine died and left me his house. I
find that to be a gift, so I basically plan
on selling it. I'm probably net 160 out of it.
(28:28):
My my wife and I have been trying to get
debt free for a long time. So here's the deal.
We want to take phase 160. We want to pay
80 and 80. We don't want to throw it on
the mortgage, which is very small, 65,000 5000 at probably 3.5%.
So it doesn't hurt us at all. We don't want
to put it there. We want to put the 8080
on the credit cards, which is probably about 82 of all,
(28:49):
and on the equity line, which is probably like 90 something,
which is scary. We want to get rid of those two.
Number one by we got a letter today telling us
by November 26th that damn equity line is coming due.
It must have been three or 4 or 5 years,
I guess. I didn't even have not read it. Make
a long story short, I'm concerned they're planning on pulling
(29:09):
it by the end of the year, so I better
get that thing paid down. You know what I'm saying?
S1 (29:13):
Um, yeah. Yeah. So they're going to essentially close the line.
They're going to call the whole thing due, or they're
just going to close the line, and then it's an
amortized payment from there.
S6 (29:23):
That letter started. So it will become due and payable.
I mean that the whole amount whatever out there. So $95,000.
So I want to get rid of that thing. So
I put 80 on that and 80 on the other
on the uh um, the credit cards. And then uh, oh.
In the 80s, and I, we just want to burn them.
(29:44):
That's that was the biggest, uh, horrible thing I ever did.
But I did a lot of money. I sunk it
to this house that had to be renovated. And I'm
hoping for the best in the the the, uh, the
economy so bad that who knows what it'll sell quickly.
So I really put all my cash into that house.
You know what I'm saying?
S1 (30:02):
Yeah, yeah. Got it. Okay, well, at the end of
the day, when a HELOC comes due, the lender wants
the balance paid either all at once or over a
shorter repayment period. So I think using the the inheritance
to pay that down, uh, would, would avoid you having
to refinance. That's important. And then obviously we want to
get rid of those credit cards because those are at
(30:22):
a much higher interest rate. So I'm on board with
this plan. I'd love for you to hang on to
a little bit, but hopefully, uh, now with these gone,
you'll be able to put more in savings. We'll be
right back. Thanks for your call, Bob. Thanks for joining
us today on Faith and Finance Live I'm Rob West.
(30:43):
Well the market's selling off today. The Dow Jones closed
down nearly 1%. The S&P 500 off a half a point.
The Nasdaq down a little less than that. What's moving
the markets today. Well we'll find out. Bob Dole is here.
He's CIO and CEO at Crossmark Global Investments, a frequent
contributor on Fox business. And CNBC joins us each week
(31:06):
with his market commentary. Bob, what do you make of
the markets today?
S7 (31:10):
Uh, a little profit taking. As you know, we had
five days in a row. And, uh, that's a pretty
significant streak. And I think the market just said, uh,
had our Thanksgiving weekend. I'm a little tired. I'm going
to take a little rest. What's interesting, Rob, is what
went up the most technology, uh, etc. uh, went down
the least today. It was everything else that went down more.
(31:33):
So we'll be watching that as time goes by. But
the the faith in those As technology leaders continues.
S1 (31:41):
Yeah. Interesting. Uh, president, uh, the Treasury secretary is is
out today saying there's a quote, very good chance that
President Trump names a new fed chair before Christmas. Now,
Fed Chairman Powell's term goes through May. Right. So what's
involved here? Why is he doing this.
S7 (32:00):
Well it's I don't I don't like my current fed chair.
Let me name the new one long before he is
in control. Uh, so focus moves away from the guy.
Don't want in the chair to the guy. Do want
in the chair. That's what this is all about. And
we'll move from, uh, a guy who's pretty much center
of the road, uh, in, in our current fed chair
(32:20):
to someone who's far more dovish. And there's a lot
of people concerned. Uh, thankfully, there are other voting members
on the fed, as you know, Rob. And, uh, hopefully
they'll keep things on the straight and narrow.
S1 (32:33):
Bob, if you had to take a make a prediction
about what will happen this month when the fed meets.
Where do you think they'll land?
S7 (32:41):
Oh, boy. Um, as I've pointed out before, in the
last couple of weeks, the futures have been below 30%
for a cut to above 80% for a cut there
toward that higher end. Now. And, uh, so if the
vote gets held today, uh, they may they more likely
will cut than not. But if they don't, that wouldn't
surprise me because inflation is still running higher than they
(33:03):
would like. So they've got to do that delicate balancing act.
And uh, having lowered rates last month, might they take
a pass? I wish they would, but we'll see.
S1 (33:12):
Yeah. Very good. Bob, I know you, uh, in your
commentary this week, it was really insightful. And by the way, folks,
if you you don't receive, uh, Bob's commentary, Dole's deliberations weekly,
you should. It's available free. Just head to Crossmark Global.com
to sign up. But I know you've been thinking real
long term here, really looking at some of the the
global economic factors that will shape the next decade, you
(33:35):
want to just give us a kind of a flyover
of some of the themes you're watching.
S7 (33:39):
Yeah, China is a major player in the world, and
they're struggling a bit. I think they're going to struggle
some more. Um, the, uh, private sector has been deleveraging
that is paying down debt. That's probably going to end.
Uh deglobalization. All this talk about trade and tariffs and
so on means less trading with each other. That's deglobalization. Uh,
(34:04):
here in the US, we lead the way, but a
lot of other countries too, elevated government debt. Uh, that
is going to bite us at some point in time.
And the fifth inning with a positive artificial intelligence, lots
of good stuff happening there. Let's just hope we don't
get ahead of our skis in the market. On the
developments in that good space.
S1 (34:23):
Yeah, Bob, what about inflation kind of alongside all of
that that you just mentioned.
S7 (34:29):
Yeah. So you know we've been of the view. We
say it in our commentary, uh, at least once a month,
the probability of the United States inflation rate getting down
to the Fed's target of 2% absent a recession is
nearly zero. It's just not going to go there. So
many other forces now you might say is, you know, 2.8,
2.7 a big deal versus two. The fed wants two.
(34:52):
The market is discounting two. So if the stocks were
not so expensive I'd be less concerned about it. But
I think inflation is going to remain sticky.
S1 (35:00):
Yeah. So given those themes you just articulated, uh, does
that mean you believe that, uh, returns annualized returns will
be more tempered than what we've seen over the previous
decade or two?
S7 (35:13):
Yes. Even without the concern about inflation, the starting valuation
and the starting profit margins for corporate America, tell me
a lot of good stuff has happened in our returns
in recent years, and we're just going to have more
pedestrian returns. Doesn't mean we can't make money in the
stock market, Rob. It just means we're going to be
more careful and more patient.
S1 (35:34):
Yeah. Very good. All right, Bob, we appreciate you as always.
S7 (35:37):
Have a great week.
S1 (35:39):
Thanks for being here. That's Bob Dole. He's CEO and
CIO at Crossmark Global Investments. Joins us each week with
his market commentary. All right. Back to the phones, Chattanooga.
And how can I help?
S8 (35:51):
Well, I have a question about, uh, no penalty CDs.
I've heard you talk a lot about the, uh, high
yield savings and had decided to put some money in that.
And then I listened to you regularly, but recently have
not been able to listen to you. And but I've
started hearing about the no penalty CDs, so I don't
(36:14):
know if you've talked about those or not, but, uh,
is do I understand that correctly, that you buy the
CD for X number of months and your rate cannot
go down during that time, but I assume it cannot
go up during that time either. So is that, uh
(36:35):
is that? How does that compare with the, uh, high
yield savings as a place to.
S1 (36:43):
Yeah.
S8 (36:44):
Very good.
S1 (36:45):
It's a great question. And, um. Yeah, I mean, it
depends on the type of the CD. So no penalty
CDs typically have a fixed rate. And so once you
open a no penalty CD, the rate is locked in
for the entire term. So it doesn't go up or
down even if the market changes. So that's one of
the benefits is you get a guaranteed rate, but you
(37:08):
can still take the money out at any time, which is,
you know, one of the primary, uh, features, uh, right now,
you know, they're paying around 4% or so. You still
get the FDIC insurance. You would often get a higher
rate than most savings account, uh, most savings accounts. But
(37:29):
you've got the flexibility because you're not locked in for
6 or 12 months. So it's great for emergency funds
or short term savings because you don't have, you know,
that typical early withdrawal penalty, you typically have to keep
the money in for seven days, but after that you
can withdraw any time without any fee. Um, so, you know,
(37:50):
you could look around a lot of times people will say,
you know, because they're giving up a little bit of
yield in order to get that no penalty CD. They'd rather,
you know, get the higher rate and go ahead and
lock it up for a period of time and then
ladder it. Um, but if you really need that flexibility
and you can find a no penalty CD at like
(38:12):
ally Bank or Marcus or synchrony Bank, you could go
to Bankrate.com and do a search there. You know, it
is a nice feature. If you can beat the the
high yield savings and keep your liquidity. Does that make sense?
S8 (38:27):
Yes it does. Yes. And that was what I wanted
to be sure that it was clear about that. Yeah, well.
S1 (38:36):
I think it could be a good option. And, you know,
at the at the end of the day, the penalty
CDs usually pay a higher interest rate. So that's what
you're going to have to look at. And they're better
for long term savings. And people generally don't break the
CD as long as you plan properly. And maybe you
stagger them. You could do six months and 12 months
(38:57):
and then two years and then, you know, or 18
months and two years. So that way every six months
you've got a new tranche coming due. But if you
can plan well and get that yield up a little
bit higher, a lot of people say, I'm willing to
lock it up for a period of time for this reason,
but if you really need the access to it and
you can find one that's better than the savings, you
(39:18):
know that may be your best option because then you
can get to it at any time.
S8 (39:23):
Right? Yes, I do have some CDs that are laddered and, uh,
taking care of that, but, uh, this, this money, I
kind of want to keep more.
S1 (39:35):
Yes.
S8 (39:37):
More accessible.
S1 (39:39):
Yeah, I totally understand. So I would, I would shop around.
A great resource is Bankrate.com to find out who has
the best CD and savings rates and do some comparisons.
You could also go to Nerdwallet.com is another one. Um,
but I'm confident you can find something that's a good
fit for you that'll give you the safety you're looking
(39:59):
for and get you, you know, hopefully locked into these
rates before they head down even further. Uh, and thanks
for your call today. I appreciate you being on the
program and for being a regular listener. Lord bless you. Uh, Lisa,
in Chicago, unfortunately, we're not going to have time to
get to your question because I don't want to cut
you off. But let's see, maybe we can get you
scheduled for tomorrow's broadcast. I'd be delighted to chat with you.
(40:22):
The team. We'll see if we can get you scheduled
to be first up. Well, folks, we've covered a lot
of ground today. Let me just say thanks for being
on the program today. Thanks for listening and tuning in.
Also for those that called in, I also want to
say a big thanks to those of you who, here
at the end of the year, have been a part
of those that are funding Faith fi. You know, we're
(40:42):
listener supported and we're headed toward year end, and we
set a two month giving goal for November and December
of $175,000 to be able to close out our year
on budget. And some generous friends stepped up and said,
we'll match everything that comes in. So up to 175,000
(41:03):
for the months of November and December. Uh, every dollar
is matched. Well, the good news is, um, we've had
a great response. So in November, which just ended already,
80,000 of the 175 is in, which is really exciting.
That means a 95,000 to go. And we've got the
entire month of December to do it. So if you
(41:24):
love the program, maybe you listen regularly. Let me encourage
you head over to Faith. You can track our progress
throughout the month, and you can perhaps consider your own
contribution to the ministry. Again, every gift is doubled. Gifts
of every amount. And whenever you give any amount, you
(41:44):
will ensure that my new devotional, coming out early next
year will be mailed to your door. It's just one
of the ways that we'll say thank you again. The
website faithfully. That's faith. Com. Well, big thanks to my
team today Josh, Jim, Tyra, Omar and everybody here at
Faith by Faith in finance Live is a partnership between
(42:06):
Moody Radio and Faith. I hope you'll come back and
join us tomorrow. We'll do it all over again as
we try to provide biblical counsel for your financial decisions,
knowing you and I well, as stewards of God's money.
We have a high calling. We want to journey with
you and encourage you along the way. Come back and
join us and we'll see you. Bye bye.
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