April 21, 2025 • 42 mins
Proverbs 13:22—“A good man leaves an inheritance to his children's children…” a verse that teaches a life of faithful stewardship will enable you to leave something of great value to your heirs. But how you do that can impact future generations. On today's Faith & Finance Live, Rob West will welcome Jeanne McMains to talk about “the intentional inheritance.” Then Rob will answer your financial questions.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
S1 (00:08):
A good man leaves an inheritance to his children's children.
Proverbs 1322. Hi, I'm Rob West. That verse teaches that
a life of faithful stewardship will enable you to leave
something of great value to your heirs. How you do
it can impact future generations. Jean Mcmains joins us today
to talk about the intentional inheritance. And then it's on
(00:30):
to your calls at 800, 500, 25 7000. That's 800, 500, 25, 7000.
This is faith in finance. Live biblical wisdom for your
financial decisions. Well, our guest, Jean Mcmains, is executive vice
president of offerings and marketing at the National Christian Foundation.
(00:52):
A great partner of ours here at Faith and finance
for a long, long time, it's Jean's passion to help
families leave a faithful legacy for future generations. Gene, what
a treat to have you back.
S2 (01:04):
Thank you Rob. It is always a pleasure to explore
this topic with you.
S1 (01:07):
Gene, as you know, you have an incredible article in
the latest issue of our magazine, Faithful Steward, called Intentional
Inheritance Crafting a Faithful Legacy for Future Generations. And I
was so delighted for our readers to be able to
take this in, because I think this is such an
important topic that just impacts so many of our listeners.
(01:29):
I'd love for you to start by just describing what
we mean by an intentional inheritance.
S2 (01:36):
Well, Rob, some of the most significant and lasting stewardship
decisions we make are concerning this inheritance we're going to
leave behind for our loved ones for generations to come.
And so leaving a meaningful legacy goes way beyond the
mere transfer of financial resources. It's going to encompass the
how we do this with prayerful intentionality. So the inheritances
(01:58):
will actually build values and faith and Christ centered purpose.
That's foundational for why stewardship?
S1 (02:05):
Yeah, that's exactly right. We want to transfer wisdom before wealth.
We want to leave a legacy of righteousness. And I
love this idea that our the values and our faith
needs to go first, even before the financial inheritance. Or
it could actually create some challenges, and we'll certainly get
into that. But, Jean, how do we begin that process
you just described?
S2 (02:25):
Oh, it's so critical to start with introspection, uh, asking
ourselves what role does wealth play in our lives? And Rob,
what I'm talking about wealth, right? It's all of the
resources that are entrusted to our care, no matter the size.
It's a stewardship entrustment that the Lord gives to us.
And so the question really needs to start with our
own view of our financial resources, not as an end
(02:49):
of themselves, but as a means to help us pursue
God's purposes in and through us.
S1 (02:55):
Mhm. Yeah. And we've got a lead with that. We
of course have to model that and live that out
so that we're equipping heirs for what they will ultimately receive.
And that requires not only that introspection you're talking about. Jean,
a lot of thought, but a lot of prayer too,
doesn't it?
S2 (03:13):
It absolutely does, because financial resources can sometimes weave into
that sense of identity and security. That is really this
central place where only Christ should reign. And it's not
a one and done kind of laying it at the cross.
It's for many of us, it's a daily seasonal reputting
our attitudes about wealth and what our role is in
(03:36):
relationship with them at the foot of the cross, and
asking the Lord to make sure our identity and security
are firmly grounded in him. Yes. And these resources that
we want to take care of during our lifetime and
leave to our loved ones are just that catalyst to
be used by us to carry out his purposes.
S1 (03:53):
That's really helpful. Gene. And I know you share a
couple of questions that can help to shape our thinking
in this. And before the first break, I'd love for
you to share that first question that folks can start with.
S2 (04:04):
Absolutely. Each error is created by God with unique strengths
and challenges. And so intentional inheritance design starts with asking,
how can this inheritance support God's ongoing work in their lives?
Instead of equal distribution, I encourage people to aim for
purposeful allocation that supports their loved ones pursuit of their
(04:26):
God given potential. Um, Rob, I go back to, uh,
the study of Henry Blackaby experiencing God all those decades ago. And,
you know, let's see where God's working and at work
in their lives and design an inheritance that's going to
join him there. I think that's the best place to start.
S1 (04:42):
Yeah, I couldn't agree more. And I think it goes
back to what you said a moment ago, and that
is that money, God's provision to us is a means
to an end, not an end. And so it's this,
as you said, this support of where God is taking us.
And if we see that, then it gives a whole
different perspective, I think, to the inheritance we're leaving, as
(05:03):
we prayerfully consider how much and to whom, and perhaps
more importantly, how are we preparing them to steward that wealth?
When we come back, we'll continue to unpack this. How
do you make those inheritance decisions? Jean McMahon is with
us today. She's executive vice president of offerings and marketing
at NCF. Stay with us. I'm so glad you're with
(05:34):
us today on Faith and Finance live. I'm Rob West
with me today. My friend Jean McMahon. She's executive vice
president of offerings and marketing at the National Christian Foundation,
helping you be a wise giver as you are entrusted
with much thinking about how do you give it away?
But today we're talking about an intentional inheritance. How do
(05:56):
you leave something of great value to your heirs, and
perhaps think about the impact that that money can have
on future generations? And Jean, before the break, you were
sharing with us that, you know, really that first question
is how can this inheritance support God's ongoing work in
their lives? Recognizing that this inheritance is really the fuel
(06:17):
in the engine that's going to continue to propel them
toward wherever they're already going, which can be a good thing,
or it can be concerning. And I think that's one
of the reasons we need to give great thought and
prayer to this. But I'd love for you to share
some advice for making these inheritance decisions. How do you
do that?
S2 (06:36):
Oh, yeah. Um, it's always good to break it down
into pieces and parts, because it can be very overwhelming
when we're looking at it through decades of time. And
so looking at again, how the Lord's working in their
lives right now is the most excellent starting point. And
what I found over the years, Rob, is that helping
families think in terms of three types of inheritances can
(06:58):
help expand their thinking. And the first one would be
the idea of an inheritance to spend, so to speak.
Resources to provide the training and opportunities, experience and possessions
that will help our loved ones live productive and content lives.
S1 (07:15):
Mhm. Yeah, I love that. And I love the experiences
part of that which can be done. You know, before
we pass away in terms of leveraging resources to build
into the heirs. But obviously that can happen after as well.
And you know we want them to live those productive
lives which recognizes Gene that depending upon their spiritual or
(07:36):
financial maturity, we may determine they're not ready to handle that,
to spend that wisely. How do we approach that?
S2 (07:43):
Well, it's a great question. I mean, there's a lot
of excellent estate planning trusts and wills and structures we
can put in place. But rather than just handing over resources,
providing them in a way that encourages whether it was
different types of classes or youth camps or different types
of travel, I often say experiences are the soil with
which character and learning and wisdom grow. And so being
(08:06):
really thoughtful about the types of experiences that could be meaningful,
to allow your loved one to intersect with God and
the world in accordance with the gifts that he's wired
within them.
S1 (08:18):
Yeah. And that really leads us to this second type
of inheritance that you call an inheritance to shape. What
do you mean by that?
S2 (08:25):
Yes. Second, inheritance is one to shape. So the first
inheritance to spend is again, more your traditional thinking. What
are the financial resources they're going to need to be
launched in the world? An inheritance to shape is really
what we were just speaking about providing, whether it's mission
trips or family retreats or service projects, or I even
(08:46):
worked with a the family one year who had a
family value of lifelong learning, and they designed a trust
that would allow each beneficiary to go pursue an area
of learning each year. And they would just celebrate that
whether it was learn a new language or learn how
to cook or learn how to do AI with greater proficiency. Wow.
So it's really comes alive. This idea of estate planning
(09:07):
and inheritance planning comes alive when we can look at
these resources as a way to help our family members
flourish in character and values.
S1 (09:16):
Oh, that is so good, Gene. And it just comes
back to this idea of intentionality. We can't take a
cookie cutter approach, but if we lean into this, perhaps
we can do something really unique and special. Take us
to that third type of inheritance.
S2 (09:30):
Absolutely. So we have inheritance to spend and inheritance to shape,
and an inheritance to share. We've heard it say, Rob,
that we're blessed to be a blessing, but it's really true.
The Lord gives us resources for us to be his
hands and feet to point a world to him, his
love and his glory. And so this idea of an
inheritance to share, that's set aside and funded to help
(09:53):
loved ones pursue charitable endeavors, whether it's charitable giving and
or service, um, mission trips and volunteerism. Um, that's how
I've designed my own estate plan, actually write an inheritance
for my children to have to to spend, but also
a giving fund, a donor advised fund for them to
go share their blessings with the world in need in
(10:14):
accordance with their passions.
S1 (10:15):
Yeah, I like that. That's well said. So it's this
idea that we can really foster spiritual growth, family culture
and also a commitment to bless and serve others in
our plans through our estate planning and wealth transfer. All right, Jean,
we've got just about three minutes left. Let's start to
put this into action. And I'd love for you to
(10:36):
unpack some of the really practical steps to crafting an
intentional inheritance.
S2 (10:41):
Absolutely. Rob, I tell folks there's four key kind of
steps to help us, you know, successfully pursue this, this goal.
And one is engage in open dialogue. Be sure we're
initiating conversations with family members about values and the desired
purposes for stewarding shared family resources. If we're not addressing
those heart conditions on what's our role with wealth and
(11:04):
what's our opportunity to go serve others, leaving financial resources
through a will or a trust without that firm foundation
is not an intentional inheritance. Rob.
S1 (11:17):
Yeah, that's exactly right. And when you talk about open dialogue, Gene,
often folks will immediately think, well, how much do I share? Like,
do I actually give them the numbers? And what if
they're not happy with some of the decisions I've made?
How do you counsel givers in that? Gene.
S2 (11:31):
Absolutely. Well, first of all, we need to acknowledge it's
going to be different for every family, right? It just
genuinely is. But I try to relieve the pressure. You
don't have to share the dollars and zeros that are
involved in how much it's more the purpose of the
why and the and the attitude with which we want
to receive and steward these blessings. So I tried to
(11:51):
take that pressure off folks. It might not be the
detail on on how much is coming and when, but
what the opportunities are once received and what we need
to do to prepare for those. And, you know, your advisors.
I think a second point is you're having faith aligned
advisors is critical. I have been an estate attorney for
almost three decades now, and it really matters when you're
(12:15):
working with clients and clients are working with with advisors
that share their biblical worldview, and that these types of
important decisions make sense to them, and they're supportive of that.
So seeking help from financial and legal professionals to ensure
that your plan aligns with your Christian worldview is important.
S1 (12:31):
Yeah, no doubt about that. All right. Two steps remaining. Jean,
take us into those.
S2 (12:36):
Uh, third, we really need to prepare our heirs. And
so providing our beneficiaries with financial literacy, education and even
right sized activities during their lifetime to allow them to learn, stumble,
pick up the pieces and learn. I mean, no matter
what we do, we need an opportunity to live that
out and learn the skills during lifetime before we receive
(12:58):
this inheritance. And then finally, I think it's important to
use strategic giving and estate planning vehicles. You can wisely
use wills and trusts. All these concepts Rob transfer in
the terms of the provisions you put in those legal documents.
Donor advised funds, charitable trusts all of these things can
help facilitate ongoing generosity that reflect our commitment to generous
(13:20):
living and giving.
S1 (13:22):
Wow. That's incredible. Well, Jean, we're so thankful for this
counsel today. Folks, you need to check out NCF giving.com.
Over $21 billion has been granted out to charities since 1982.
They have offices nationwide and they just want to come
alongside you, to encourage you to be intentional in your
giving and your inheritances, and also to help you build
(13:45):
that strategy that's right for your family again. NCF giving
Jean thanks for being here today.
S2 (13:51):
Thank you Rob. It's been fun.
S1 (13:53):
That's Jean Mcmains with the National Christian Foundation, by the way,
if you want to read this article in Faithful Steward,
become a Faith fi partner at Faith Philly.com. That's. All right.
Your calls are next. The number 800 525 7000. That's
800 525 7000. I'm Rob West, and this is faith
(14:16):
in finance. Live biblical wisdom for your financial decisions. We'll
be right back.
S3 (14:30):
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 (14:54):
Hey, thanks for joining us today on Faith and finance
Live here on Moody Radio. I'm Rob West. Boy, great
to have Jean Mcmains with us today. What an important conversation,
by the way. Uh, that's one of the featured articles
along many in the current issue of Faithful Steward. The
next issue is due out next month, which is just
a week or so away. So this is a great
(15:16):
time to get on board as a Faith VI partner.
If you do that before the end of April, you'll
get the current resources for partners. So issue one of
the Faithful Steward Magazine and our current devotional look at
the sparrows, a 21 day devotional on financial fear based
on the sermon on the Mount beginning in May. Those
(15:38):
will no longer be available if you become a partner
past May. You'll then begin receiving the new resources, which
is issue two of the magazine, and our new study
called Wisdom Over Wealth a deep dive into the Book
of Ecclesiastes. But if you get on board now, you'll
get all of it. So make sure you check in
with us. Become a Faith V partner at Faith Philly.com.
(16:01):
If you love the ministry you've participated, maybe here on
the air, you've certainly been a beneficiary of the broadcast
and something you heard, or you just want to help
us reach more people. Faith v partner is the way
to do that. Just head to Faith Philly.com, click give
and you can learn more there. All right. We're ready
to dive into your questions today here in just a moment.
(16:22):
So now's the time to call 800 525 7000. Again.
That's 800 525 7000. We'll look forward to tackling whatever's
on your mind today, but lines are open. This is
the time to call 800 525 7000. Before we head
to the phones today in the news, savings rates, uh,
(16:43):
are still pretty impressive today in many online banks, even
though time may be running out. Uh, some online banks
are still offering apys at or near 5%, uh, which
is well above the current 2.4% inflation rate as of
the last, uh, reading. Of course, those rates may require
keeping a balance as high as $5,000. That can be
(17:06):
a requirement. Some financial institutions have started trimming their rates
by 10 to 15 basis points. That's about one tenth
of 1%. 100 basis points is 1%. Uh, that's signaling
a possible downward trend. Why does this matter? Well, because
many savers still have funds parked in accounts yielding less
(17:26):
than 1%. So moving to a high yield account could
add hundreds, if not thousands of dollars in interest over
a year to your savings with no added risk, especially
if you're keeping a fully funded emergency fund of 3
to 6 months expenses. So what should you do? Well,
check your current APY. That's annual percentage yield. If it's
under 4%, consider shopping around for a better rate. Watch
(17:50):
for those requirements or caps. Some accounts come at least
the top tier ones, with balance limits or monthly activity requirements.
Bankrate.com can help you locate those high yields and evaluate
the additional requirements. I will say more and more of
our listeners here at Faith and Finance Live are interested
in a banking partner that shares their Christian values. If
(18:12):
that's you, check out Christian Community Credit Union. You can
do that at Join Christian Community Comm. They have those
competitive rates, but with an institution built for Christians. So
you know that everything they're supporting with a part of
the profits are toward Christian ministries is aligned with your values. Again,
you can learn more at join Christian community.com. All right
(18:35):
let's head to the phones here. Today we're going to
dive in. We've got lines open. You can call right
now any financial question today 800 525 7000. Let's go
to Oklahoma. Hi Ryan. How can I help?
S4 (18:48):
I'm just going to deal with it. There's these ones
that have, like, connectors.
S1 (18:51):
Oh. All right, let's do this. I think Ryan had
to take another call. So we're going to see if
we can get him ready to go. And then we'll
dive into that question today. Again lines are open. We're
ready for you today. 800 525 7000. Uh, you know,
we started today by talking about, um, inheritances and what
it will look like to, uh, pass on wisdom before. Well,
(19:14):
thinking about really how important inheritances are. You know, uh,
you've you've got to recognize that when it comes to, uh,
choosing the next steward, crafting that faithful legacy is really essential. And, uh,
hopefully Gene McMahon's gave you some great tips today to
think about. Take those to heart. They're really important as
(19:35):
you consider how you might be able to leave what
God has entrusted to you. All right. I think Ryan's ready.
We'll go to Oklahoma. How can I help you, sir?
S5 (19:43):
Yes, I just heard last week you were talking about trust.
And they'll protect you. It's like. And I'm just curious.
My dad has a trust, and he has a couple
haunted houses. And I know how to protect the assets from, like,
nursing home or something like that. Or. Or if that
wouldn't work, I don't know.
S1 (20:04):
Yeah, it's a great question. Uh, you know, it's, um,
largely to do with what's called the Medicare spend down requirements.
And a trust may protect you. It depends on the
kind of trust, how it's structured. And, of course, Medicare's rules, uh,
Medicaid often covers long term nursing home cares for those
(20:26):
who To qualify, but it does require low income and assets,
so typically under $2,000 for an individual. Excluding certain exempt assets,
that would be a primary home up to a value cap.
And then you need to typically spend down those assets,
prompting the question of whether or not then the trust
(20:47):
can shield them. Let's talk about the various types of trusts.
And ultimately you'll need to connect with an attorney. But
we'll just talk generally here for a second. The most
common kind of trust folks will have is a revocable trust,
where you can make changes over time. They're normally used
for avoiding probate and estate planning, but not asset protection.
(21:08):
And as such, there would not be protection with a
revocable living trust for for your assets or your dad's
assets from nursing home costs or the Medicaid spend down. Now,
you may be able to get that, though, with a
Irrevocable trust. If it's structured correctly, you have to relinquish,
(21:30):
or he would have to relinquish control and and access
to the trust's assets. Uh, so Medicaid would not be
able to count those in a properly designed, irrevocable trust.
The downside is, though, he would be given that up. Uh,
let's talk a bit more about that after the break.
Stay right there. We'll continue to unpack this. We'll be
(21:51):
right back. Great to have you with us today on
Faith and finance live. I'm Rob West. We're taking your
calls and questions. We've got lines. Open the number 800
525 7000. You can call right now. Before the break.
We were talking to Ryan in Oklahoma. Uh, he's wondering
(22:14):
about various types of trusts that might protect his father's assets.
His dad's 78 years old and may need nursing home care.
And really, this at the end of the day, Ryan,
is something you need to get with an attorney on.
Bottom line is it really is going to depend on
the type of trust that you have. So a revocable trust,
(22:37):
definitely no protection, an irrevocable trust that's established more than
five years before needing the care may provide that protection.
And that would most often be either just an irrevocable
trust where the assets are relinquished and access to the
trust assets are relinquished. Um, given the name irrevocable. And
(23:02):
as again, as long as you get past that five
year look back period, it may in fact protect those assets. Um,
another type of trust that's very similar is what's called
a medicaid asset protection trust. That's just a specific type
of irrevocable trust designed for this purpose to shield assets
from Medicaid while you retain some benefits so you could
(23:24):
get an income from the trust, though that may count
toward the Medicaid income limits. So I think your next
step is to to visit with an estate attorney, specifically
an elder law specialist, who can walk you through all
of these things and help you understand kind of how
to approach this. The only other thing I would just
throw out, um, you know, would be just the biblical
(23:48):
perspective on this, whether protecting assets through a legal means,
you know, is something that you could feel good about
just in terms of your own convictions about it. I think,
you know, the idea behind Medicaid is for it to
kick in once assets are depleted. And so I think
you just need to kind of think and pray through
(24:09):
the ethical side of this, in addition to the legal
or the mechanical side, if that makes sense.
S5 (24:14):
Yeah.
S1 (24:15):
Okay, good. Uh, if you need an estate attorney there
in Oklahoma, Ryan, you don't have one. You can could
reach out to a certified Kingdom advisor on our website.
They'll all have a godly estate planning attorney that they
work with, and you'd want to again reach out to
somebody specifically who has elder law experience and ask about
an irrevocable trust, and perhaps more specifically, a medicaid asset
(24:39):
protection trust. And they can talk you through the the
details on it. Thank you for your call, sir. I
hope that helps. We appreciate you being on the program. Uh,
Lane is in Chicagoland. Go ahead.
S6 (24:50):
Hi. We have an adult child that we've secured Social
Security disability for, and she's been getting it for years.
And we just filed our taxes, and our sica had asked, oh,
are you reporting the monthly Social Security benefit as rent
or a gift? And we've never reported it as either
(25:13):
one of those things, because we use that money because
she lives with us. We use that money to support her. Now,
we don't always use the full amount, you know, but, um,
for everything. So I'm just wondering, are we required to
do that, or should we think about reporting it as rent,
or is it a gift? I don't even know.
S1 (25:32):
It's a good question, and it really depends on the situation.
Do you normally prepare your own tax return, or do
you have somebody do that for you?
S6 (25:40):
Someone does it for us.
S1 (25:41):
Okay. So this would be a conversation to happen with
that have with that person who could help you uh,
kind of wade through it at the end of the day. Well,
let me ask, do you claim her as a dependent
on your taxes?
S6 (25:54):
Yes.
S1 (25:54):
Okay. Yeah. So if you provide over half of her
support and she meets the IRS criteria, uh, then you
likely do. That strengthens the case for, uh, you know,
treating these payments as shared expenses, not gifts or rent.
The IRS is less likely to view intrafamily, you know,
contributions as taxable income when she's claimed as a dependent
(26:17):
for the reasons that you mentioned, uh, you know, ultimately, um,
you know, if somebody is doing, uh, a predictable amount
where there's an agreement in place and they cover, you know,
a specific amount every month that, you know, basically is
a monthly amount for a room, utilities or food. It
(26:37):
can be considered as, uh, rental income that would then
need to be reported where there's an expectation or an
understanding that this is a regular amount being paid for
her housing, where it's a gift, is when typically when
it's voluntary, it's not tied to a specific obligation. Um,
and it's coming in, you know, there's no formal agreement
(26:59):
for her to pay. It's irregular. That's where, you know,
it would be often considered a gift, uh, if it's
just a, her portion of a shared household expense. So
a proportional amount, let's say a third of the utilities,
if there's three people living there, There's no profit motive.
You know, typically that would not be reported as income
(27:21):
and seen as kind of mutual support within a a
family household. And I think, again, because she's claimed as
a dependent that would further strengthen that case. But at
the end of the day, kind of deciding exactly how
to handle this, which is likely exactly the way you've
been doing it, you would really want to talk to
your CPA about it.
S6 (27:41):
I appreciate it. Thank you very much.
S1 (27:44):
All right, Lane, we appreciate your call. Call anytime. 800
525 7000 is the number to call. Uh, let's go
to Cleveland, Ohio. Hi, Mary. How can I help you?
S7 (27:54):
Hi, Rob. Thanks for taking my call. Um, I so
funny that you're talking about special needs because I have
a special needs person question, too. Um, so my daughter
is 25 years old, and she, you know, I'm 54,
so I kind of want to put something away in
regards to a trust or what have you. I'm not
quite sure what all is really out there and which
(28:15):
is the most beneficial for a kid. Because I have
two regular typical children as well. There are 22 and 23. Um,
my question basically is I know that there's special needs trusts.
I've heard something about an able account or whatever. I
just don't know the best route to go to best
protect her, because we do have some annuities. Um, that,
(28:37):
of course, the three of them are the beneficiaries for.
So I.
S8 (28:42):
Don't know. Absolutely. Yeah. Well, I appreciate that.
S1 (28:46):
And, yeah, you could, uh, use perhaps both of them together.
And we actually did a program on this not too
long ago. Um, I'll have my team get your information
and we'll send you a link to it. But essentially,
the the special needs trust and the able account, uh,
offer a way to manage finances. And the key is
they preserve eligibility for government benefits. So, like Supplemental Security
(29:09):
Income and Medicaid. Uh, essentially the Essentially, the special needs
trust holds assets for the benefit of the person with disabilities. Uh, again,
without disqualifying them from the government benefits. It funds the
supplemental needs. It gives flexible funding so it can be
funded with family money or inheritance or even life insurance proceeds. Um,
(29:33):
and then it can provide lifetime support. It can even
be tailored to their unique needs in terms of how
the funds should be used. And you can have some,
you know, say in constructing that and putting all of
that in place. And then the trustee administers it. Uh,
the able account is similar. You can't put as much
in there. Only up to $100,000 is exempt from the
(29:57):
Social Security, uh, asset limit. Um, but that provides tax
free growth. Uh, it's easy to manage, and it has
an even wider range of uses. So it can cover
not only housing but food without impacting the SSI and
the Medicaid. And that's why a lot of people use
(30:18):
both of them. The special needs for large sums like
inheritances or long term planning, the able account for smaller
everyday savings because you can use it for more purposes.
So putting them together can be really powerful. Um, what
I would do is, is find an estate planning attorney
who has some expertise in this area to set them up.
(30:39):
But I think at the end of the day, having
one or perhaps both of them in place so that,
you know, you've got the assets there and it doesn't
affect government assistance, is going to be really helpful. Stay
on the line. We'll be right back.
S8 (30:59):
Great to have you with us today on.
S1 (31:00):
Faith and Finance Live. We're here in our final segment today.
Let's head right back to the phones. Cleveland, Ohio. Hi, Mary.
How excuse me. We just talked to Mary a moment ago.
Let's go to Florida. And, Lauren, thank you for your patience.
Go ahead.
S5 (31:15):
Hello.
S8 (31:16):
Hi, there.
S1 (31:16):
How can I help?
S8 (31:17):
Hi.
S9 (31:18):
So, um, I'm a teacher in Florida, and when I
started teaching, they had two options. You could either do
the full pension or you could do the investment plan.
But in order to do the pension, you had to
stay with the state for within the state for eight years.
So at the time, I didn't plan to stay here.
I was going to move. So I went into the investment. Um,
but now I'm 19 years in and I'm thinking that,
(31:39):
you know, maybe I made a poor choice, and I
need to I should probably switch over to the pension.
So there's a deficit in the pension. Um, however, I
do have an IRA, um, that has some money in
it that I could roll over to buy into the pension. Um,
and there still would be a little bit of deficit
that I'd have to, um, pay for myself. So I'm
(32:02):
just not really sure if, if that's a smart idea
to do that or to just leave the money in
the investment plan, but whatever it's invested in doesn't seem
to be getting a very good return. Even before the
market kind of started going down. But I know that, like,
what it invests in is like some kind of funds,
but I can I know I can take control of
(32:22):
that and kind of change what the things that are
is being invested in so that maybe try to, I guess,
gain back some of the loss. So I just I'm
not really sure what the best option is.
S1 (32:33):
Yeah. Well, I'll give you some thoughts. I mean, it
may be helpful just to have an advisor look at
all the options that are available in the investment plan
and just help you look at historical performance and maybe
run some scenarios for you to play out. You staying
and getting, you know, a more reasonable rate of return,
perhaps by repositioning some of those investments moving forward and
(32:55):
projecting what you would have at retirement versus the pension plan,
you know, a lot of, uh, you're going to have
to work with your specific retirement plan. To determine, you know,
whether they'll let you move over. And to your point,
it sounds like you've already investigated that a bit. And
they will usually you have like a one time option. Um,
(33:18):
and you need to really think through what the implications
are would be of taking that option and you know,
the costs that will come with it. Um, you know,
the benefit of staying with the investment plan is you
get to choose how you invest. Now, you know, depending
on which investments you've selected that may or may not,
you know, work out for you. And I wouldn't want
(33:39):
you to try to be, you know, ultra aggressive to
kind of, quote, make up for lost time. Uh, I'd
want you to have an appropriate investment mix for your
age and time horizon. But it also could be that
you were maybe too conservative. And so you do need
to be repositioned. Um, you know, a lot of times
there's portability. You have the potential for higher returns, and
(34:02):
unused funds can be passed to heirs, which is typically
not the case with the pension. And you get the
obviously the tax advantages. The benefit of the pension plan
is you've got a fixed monthly payment for life. You
don't have the market risk. So a lot of people
get more peace of mind by just knowing that they're
not having to bear that full risk. And then a
(34:23):
lot of times they include cost of living adjustments along
the way to to make sure that it keeps up
with inflation. And then usually if you're married, you'll get
a survivor's option there as well. So I think the
key to determining whether or not it makes sense to
stick with what you've got, even if you were to
to reposition some of the assets versus moving over would
(34:43):
ultimately be, you know, younger teachers under 40, typically the
investment plan is better if you're, you know, over 50.
Usually the pension is the better option because it's that
guaranteed income that reduces risk closer to retirement. If you're
between 40 and 50, it could kind of go either way,
depending upon just kind of your risk tolerance and what
(35:06):
you're feeling about, you know, what would give you the
most peace of mind? Um, you know, usually years of
service is a big factor. But as you said, uh,
you know, you're approaching 19 or maybe you're already at 19,
so you're getting to that place where, you know, that
pension could be pretty attractive. Again, assuming you understand the
full amount of what it would take for you to
(35:28):
actually get into it. And then you'd have to really
compare what your guaranteed monthly income would stream stream would
be in the pension versus what your need is. And
make sure that it, you know, it does fit into
your overall financial plan in terms of what you think
your budget will look like in that season. So I
think going back to where I started, an advisor could
(35:49):
help you first evaluate, you know, where are you at
in terms of the the investment mix in that investment plan? And,
you know, could you just stay where you're at and
make some changes versus you actually buying into the pension
option and then running some scenarios on what will it
actually look like to fund your lifestyle in retirement and
(36:11):
what will that pension, you know, produce. And does that
cover the gap? And if so, you may be thrilled
with that. To know that you you've eliminated the market
risk and you've, you know, covered what you need to
on a monthly basis, which will give you, you know,
more peace of mind. And then, you know, I think
once you see those scenarios put in front of you,
(36:31):
perhaps it'll become more clear. You know what the better
option is for you, given where you're at today? Does
that make sense? I know I threw a lot at
you there.
S9 (36:40):
Yeah. It's just it's just making that decision. That's hard
because like I said, I have this big chunk of
money in the IRA that I'd have to pay into
the pension. So it's like it's. I don't know if
it makes sense to do that or just leave them
separate and keep kind of going as it's going. So
like you said.
S1 (36:57):
And that's why I think, yeah, you're never going to
be able to, I think, have complete peace of mind
until you really see those scenarios played out over time.
And so that's where an advisor can run some illustrations
to say, okay, let's say you're we leave your IRA
where it is. And let's say we run that out
with just a reasonable annual growth rate to determine what
(37:19):
will ultimately have in the IRA if you if you
leave it alone. And then if we reposition your investment
plan with the state, here's what that could look like.
And then based on those projections, here's what we think
that might be able to, you know, you might be
able to pull out on a monthly basis and keep
that for the rest of your life, which, by the way,
(37:40):
you would be able to leave to your heirs, which
is a nice feature, versus giving up the investment plan
and all or the majority of the IRA in exchange
for a monthly check. And what that would mean, you know,
for you and or your spouse. But it goes away
at death. Um, and then I think once you see
those real numbers in front of you, uh, you know,
(38:02):
I think it'll become clear which is the better option,
but it's not something you want to guess at. You
really do want a professional to help you kind of
run those scenarios out. Because I think once you see
it in In plain sight, it'll be pretty clear.
S9 (38:16):
Yeah. Well, thank you for your help, I appreciate it.
S1 (38:19):
You're welcome. I would head to our website. If you
don't have an advisor. Com click find a professional. Any
one of those in Florida would be able to just.
You could pay them for their time. They could run
those scenarios. And you'd have a much better idea on
what you need to do at that point. We appreciate
your call today. Uh, hey, in the final segment here today,
we're joined by Bob Dole each Monday and a great
(38:42):
day to hear Bob's thoughts, because a market down significantly today,
about a thousand points on the Dow, 2.5% about the
same for the S&P and the Nasdaq. Uh, let's find
out what's weighing on the markets. Hi, Bob. Great to
have you.
S10 (38:56):
Howdy. The good news is it was down 1250 earlier,
so we've had a 300 point rally here in the
last month. Hey, an hour of trading?
S1 (39:04):
Yeah, we'll take that. Right.
S10 (39:06):
We'll take it right.
S1 (39:07):
Bob. What I mean, is it same song, second verse.
What's weighing on the markets today?
S10 (39:12):
Yeah. The big excuse today is, um, uh, President Trump
attacking the fed and, uh, wanting to interfere with its independence.
You know, foreigners in particular. But Americans don't like it either. Uh,
the foreigner, uh, show up was in the dollar decline,
a pretty big decline today. Um, so we got to
(39:33):
keep our system intact, uh, in order for this market
to to grab hold.
S1 (39:39):
Bob, we've heard a lot of talk about, uh, bond yields.
We've also heard about weakness in the US dollar. Anything
to be concerned about there? Or do you think that's
just temporary while we wait for the trade deals?
S10 (39:51):
Well, the dollar has had a lot of strength in
recent years, as you know. the trade deals, if we
get them, could bring some dollar strength back. But there
are a growing number of people that are saying, look,
the U.S. has benefited from the way the world has
been set up. That is, we are able to sell
our goods overseas because we have cheap labor overseas. And
(40:15):
that has accrued to the profits of U.S. companies. And
now we're starting to fiddle around with that. And maybe
that advantage goes away. Maybe the dollar has to go
down some. I'm not saying I'm in that camp, but
that's part of why the dollar is selling off.
S1 (40:28):
Yeah. Bob, what about just the implications of all this
for those listening today? I mean, if we have time
on our side, we can wait out this market turbulence.
And you know what? If we're honest, we've had some
pretty good years and even some good decades leading up
to this point. So perhaps we have a little bit
of room there. But in terms of inflation, in terms
of what we're going to feel over the balance of
(40:50):
this year as consumers, how do you feel like this
year is going to play out?
S10 (40:55):
You know, so we're probably going to see a little
more inflation because of the tariffs. We're going to see
a little less growth because of the uncertainty that's created.
The concern about the strength of the economy probably some
more job losses. Rob I haven't used the word recession,
but it could happen. And markets will, you know, march
(41:17):
to that drumbeat, which probably means more volatility but in
both directions. It's not going to be a one way
street down.
S1 (41:23):
Last question.
S10 (41:24):
Bob.
S1 (41:25):
Yeah.
S10 (41:25):
And you mentioned sorry. And you mentioned the long term
at the front end of your question. Yes. For goodness sake,
if you're investing for the long term, which everybody that's
in the stock market should be for the long term. Relax.
We've seen these things before. They're not fun to live through. But, um,
we will grow again.
S1 (41:42):
Yeah. Bob, if we've been holding on for 2025, perhaps
waiting to buy that house, thinking this is the year
that rates are going to start coming down, we really
haven't seen it yet. In fact, they've ticked back up recently.
Where do you think we go with interest rates from here?
S10 (41:57):
Yeah. Great question. A lot of crosscurrents. They're typically economic
weakness brings lower interest rates because it's usually associated with
lower inflation. We're not getting that. So interest rates are
probably going to stay stubborn here for a while. Unless
we have a recession then they'll come down.
S1 (42:12):
Okay. That makes sense. Bob. We appreciate your time as always.
S11 (42:17):
Have a great week.
S1 (42:18):
All right. That's Bob, a Bob doll. Uh, there's a
lot of Bob's. That's Bob doll. He's CEO and chief
investment officer at Crossmark Global Investments. You can sign up
for his weekly dolls deliberations. Crossmark global. Com. I read
it every week. It's a great read. Uh, big thanks
to my team today. Deb, Jim, Dan, Darina certain couldn't
(42:38):
certainly couldn't do this without them. And the entire team
here at Faith by Faith and Finance Live is a
partnership between Moody Radio and Faith fi. And we'll see
you tomorrow. God bless you. Buh bye.
A good man leaves an inheritance to his children's children.
Proverbs 1322. Hi, I'm Rob West. That verse teaches that
a life of faithful stewardship will enable you to leave
something of great value to your heirs. How you do
it can impact future generations. Jean Mcmains joins us today
to talk about the intentional inheritance. And then it's on
(00:30):
to your calls at 800, 500, 25 7000. That's 800, 500, 25, 7000.
This is faith in finance. Live biblical wisdom for your
financial decisions. Well, our guest, Jean Mcmains, is executive vice
president of offerings and marketing at the National Christian Foundation.
(00:52):
A great partner of ours here at Faith and finance
for a long, long time, it's Jean's passion to help
families leave a faithful legacy for future generations. Gene, what
a treat to have you back.
S2 (01:04):
Thank you Rob. It is always a pleasure to explore
this topic with you.
S1 (01:07):
Gene, as you know, you have an incredible article in
the latest issue of our magazine, Faithful Steward, called Intentional
Inheritance Crafting a Faithful Legacy for Future Generations. And I
was so delighted for our readers to be able to
take this in, because I think this is such an
important topic that just impacts so many of our listeners.
(01:29):
I'd love for you to start by just describing what
we mean by an intentional inheritance.
S2 (01:36):
Well, Rob, some of the most significant and lasting stewardship
decisions we make are concerning this inheritance we're going to
leave behind for our loved ones for generations to come.
And so leaving a meaningful legacy goes way beyond the
mere transfer of financial resources. It's going to encompass the
how we do this with prayerful intentionality. So the inheritances
(01:58):
will actually build values and faith and Christ centered purpose.
That's foundational for why stewardship?
S1 (02:05):
Yeah, that's exactly right. We want to transfer wisdom before wealth.
We want to leave a legacy of righteousness. And I
love this idea that our the values and our faith
needs to go first, even before the financial inheritance. Or
it could actually create some challenges, and we'll certainly get
into that. But, Jean, how do we begin that process
you just described?
S2 (02:25):
Oh, it's so critical to start with introspection, uh, asking
ourselves what role does wealth play in our lives? And Rob,
what I'm talking about wealth, right? It's all of the
resources that are entrusted to our care, no matter the size.
It's a stewardship entrustment that the Lord gives to us.
And so the question really needs to start with our
own view of our financial resources, not as an end
(02:49):
of themselves, but as a means to help us pursue
God's purposes in and through us.
S1 (02:55):
Mhm. Yeah. And we've got a lead with that. We
of course have to model that and live that out
so that we're equipping heirs for what they will ultimately receive.
And that requires not only that introspection you're talking about. Jean,
a lot of thought, but a lot of prayer too,
doesn't it?
S2 (03:13):
It absolutely does, because financial resources can sometimes weave into
that sense of identity and security. That is really this
central place where only Christ should reign. And it's not
a one and done kind of laying it at the cross.
It's for many of us, it's a daily seasonal reputting
our attitudes about wealth and what our role is in
(03:36):
relationship with them at the foot of the cross, and
asking the Lord to make sure our identity and security
are firmly grounded in him. Yes. And these resources that
we want to take care of during our lifetime and
leave to our loved ones are just that catalyst to
be used by us to carry out his purposes.
S1 (03:53):
That's really helpful. Gene. And I know you share a
couple of questions that can help to shape our thinking
in this. And before the first break, I'd love for
you to share that first question that folks can start with.
S2 (04:04):
Absolutely. Each error is created by God with unique strengths
and challenges. And so intentional inheritance design starts with asking,
how can this inheritance support God's ongoing work in their lives?
Instead of equal distribution, I encourage people to aim for
purposeful allocation that supports their loved ones pursuit of their
(04:26):
God given potential. Um, Rob, I go back to, uh,
the study of Henry Blackaby experiencing God all those decades ago. And,
you know, let's see where God's working and at work
in their lives and design an inheritance that's going to
join him there. I think that's the best place to start.
S1 (04:42):
Yeah, I couldn't agree more. And I think it goes
back to what you said a moment ago, and that
is that money, God's provision to us is a means
to an end, not an end. And so it's this,
as you said, this support of where God is taking us.
And if we see that, then it gives a whole
different perspective, I think, to the inheritance we're leaving, as
(05:03):
we prayerfully consider how much and to whom, and perhaps
more importantly, how are we preparing them to steward that wealth?
When we come back, we'll continue to unpack this. How
do you make those inheritance decisions? Jean McMahon is with
us today. She's executive vice president of offerings and marketing
at NCF. Stay with us. I'm so glad you're with
(05:34):
us today on Faith and Finance live. I'm Rob West
with me today. My friend Jean McMahon. She's executive vice
president of offerings and marketing at the National Christian Foundation,
helping you be a wise giver as you are entrusted
with much thinking about how do you give it away?
But today we're talking about an intentional inheritance. How do
(05:56):
you leave something of great value to your heirs, and
perhaps think about the impact that that money can have
on future generations? And Jean, before the break, you were
sharing with us that, you know, really that first question
is how can this inheritance support God's ongoing work in
their lives? Recognizing that this inheritance is really the fuel
(06:17):
in the engine that's going to continue to propel them
toward wherever they're already going, which can be a good thing,
or it can be concerning. And I think that's one
of the reasons we need to give great thought and
prayer to this. But I'd love for you to share
some advice for making these inheritance decisions. How do you
do that?
S2 (06:36):
Oh, yeah. Um, it's always good to break it down
into pieces and parts, because it can be very overwhelming
when we're looking at it through decades of time. And
so looking at again, how the Lord's working in their
lives right now is the most excellent starting point. And
what I found over the years, Rob, is that helping
families think in terms of three types of inheritances can
(06:58):
help expand their thinking. And the first one would be
the idea of an inheritance to spend, so to speak.
Resources to provide the training and opportunities, experience and possessions
that will help our loved ones live productive and content lives.
S1 (07:15):
Mhm. Yeah, I love that. And I love the experiences
part of that which can be done. You know, before
we pass away in terms of leveraging resources to build
into the heirs. But obviously that can happen after as well.
And you know we want them to live those productive
lives which recognizes Gene that depending upon their spiritual or
(07:36):
financial maturity, we may determine they're not ready to handle that,
to spend that wisely. How do we approach that?
S2 (07:43):
Well, it's a great question. I mean, there's a lot
of excellent estate planning trusts and wills and structures we
can put in place. But rather than just handing over resources,
providing them in a way that encourages whether it was
different types of classes or youth camps or different types
of travel, I often say experiences are the soil with
which character and learning and wisdom grow. And so being
(08:06):
really thoughtful about the types of experiences that could be meaningful,
to allow your loved one to intersect with God and
the world in accordance with the gifts that he's wired
within them.
S1 (08:18):
Yeah. And that really leads us to this second type
of inheritance that you call an inheritance to shape. What
do you mean by that?
S2 (08:25):
Yes. Second, inheritance is one to shape. So the first
inheritance to spend is again, more your traditional thinking. What
are the financial resources they're going to need to be
launched in the world? An inheritance to shape is really
what we were just speaking about providing, whether it's mission
trips or family retreats or service projects, or I even
(08:46):
worked with a the family one year who had a
family value of lifelong learning, and they designed a trust
that would allow each beneficiary to go pursue an area
of learning each year. And they would just celebrate that
whether it was learn a new language or learn how
to cook or learn how to do AI with greater proficiency. Wow.
So it's really comes alive. This idea of estate planning
(09:07):
and inheritance planning comes alive when we can look at
these resources as a way to help our family members
flourish in character and values.
S1 (09:16):
Oh, that is so good, Gene. And it just comes
back to this idea of intentionality. We can't take a
cookie cutter approach, but if we lean into this, perhaps
we can do something really unique and special. Take us
to that third type of inheritance.
S2 (09:30):
Absolutely. So we have inheritance to spend and inheritance to shape,
and an inheritance to share. We've heard it say, Rob,
that we're blessed to be a blessing, but it's really true.
The Lord gives us resources for us to be his
hands and feet to point a world to him, his
love and his glory. And so this idea of an
inheritance to share, that's set aside and funded to help
(09:53):
loved ones pursue charitable endeavors, whether it's charitable giving and
or service, um, mission trips and volunteerism. Um, that's how
I've designed my own estate plan, actually write an inheritance
for my children to have to to spend, but also
a giving fund, a donor advised fund for them to
go share their blessings with the world in need in
(10:14):
accordance with their passions.
S1 (10:15):
Yeah, I like that. That's well said. So it's this
idea that we can really foster spiritual growth, family culture
and also a commitment to bless and serve others in
our plans through our estate planning and wealth transfer. All right, Jean,
we've got just about three minutes left. Let's start to
put this into action. And I'd love for you to
(10:36):
unpack some of the really practical steps to crafting an
intentional inheritance.
S2 (10:41):
Absolutely. Rob, I tell folks there's four key kind of
steps to help us, you know, successfully pursue this, this goal.
And one is engage in open dialogue. Be sure we're
initiating conversations with family members about values and the desired
purposes for stewarding shared family resources. If we're not addressing
those heart conditions on what's our role with wealth and
(11:04):
what's our opportunity to go serve others, leaving financial resources
through a will or a trust without that firm foundation
is not an intentional inheritance. Rob.
S1 (11:17):
Yeah, that's exactly right. And when you talk about open dialogue, Gene,
often folks will immediately think, well, how much do I share? Like,
do I actually give them the numbers? And what if
they're not happy with some of the decisions I've made?
How do you counsel givers in that? Gene.
S2 (11:31):
Absolutely. Well, first of all, we need to acknowledge it's
going to be different for every family, right? It just
genuinely is. But I try to relieve the pressure. You
don't have to share the dollars and zeros that are
involved in how much it's more the purpose of the
why and the and the attitude with which we want
to receive and steward these blessings. So I tried to
(11:51):
take that pressure off folks. It might not be the
detail on on how much is coming and when, but
what the opportunities are once received and what we need
to do to prepare for those. And, you know, your advisors.
I think a second point is you're having faith aligned
advisors is critical. I have been an estate attorney for
almost three decades now, and it really matters when you're
(12:15):
working with clients and clients are working with with advisors
that share their biblical worldview, and that these types of
important decisions make sense to them, and they're supportive of that.
So seeking help from financial and legal professionals to ensure
that your plan aligns with your Christian worldview is important.
S1 (12:31):
Yeah, no doubt about that. All right. Two steps remaining. Jean,
take us into those.
S2 (12:36):
Uh, third, we really need to prepare our heirs. And
so providing our beneficiaries with financial literacy, education and even
right sized activities during their lifetime to allow them to learn, stumble,
pick up the pieces and learn. I mean, no matter
what we do, we need an opportunity to live that
out and learn the skills during lifetime before we receive
(12:58):
this inheritance. And then finally, I think it's important to
use strategic giving and estate planning vehicles. You can wisely
use wills and trusts. All these concepts Rob transfer in
the terms of the provisions you put in those legal documents.
Donor advised funds, charitable trusts all of these things can
help facilitate ongoing generosity that reflect our commitment to generous
(13:20):
living and giving.
S1 (13:22):
Wow. That's incredible. Well, Jean, we're so thankful for this
counsel today. Folks, you need to check out NCF giving.com.
Over $21 billion has been granted out to charities since 1982.
They have offices nationwide and they just want to come
alongside you, to encourage you to be intentional in your
giving and your inheritances, and also to help you build
(13:45):
that strategy that's right for your family again. NCF giving
Jean thanks for being here today.
S2 (13:51):
Thank you Rob. It's been fun.
S1 (13:53):
That's Jean Mcmains with the National Christian Foundation, by the way,
if you want to read this article in Faithful Steward,
become a Faith fi partner at Faith Philly.com. That's. All right.
Your calls are next. The number 800 525 7000. That's
800 525 7000. I'm Rob West, and this is faith
(14:16):
in finance. Live biblical wisdom for your financial decisions. We'll
be right back.
S3 (14:30):
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 (14:54):
Hey, thanks for joining us today on Faith and finance
Live here on Moody Radio. I'm Rob West. Boy, great
to have Jean Mcmains with us today. What an important conversation,
by the way. Uh, that's one of the featured articles
along many in the current issue of Faithful Steward. The
next issue is due out next month, which is just
a week or so away. So this is a great
(15:16):
time to get on board as a Faith VI partner.
If you do that before the end of April, you'll
get the current resources for partners. So issue one of
the Faithful Steward Magazine and our current devotional look at
the sparrows, a 21 day devotional on financial fear based
on the sermon on the Mount beginning in May. Those
(15:38):
will no longer be available if you become a partner
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is issue two of the magazine, and our new study
called Wisdom Over Wealth a deep dive into the Book
of Ecclesiastes. But if you get on board now, you'll
get all of it. So make sure you check in
with us. Become a Faith V partner at Faith Philly.com.
(16:01):
If you love the ministry you've participated, maybe here on
the air, you've certainly been a beneficiary of the broadcast
and something you heard, or you just want to help
us reach more people. Faith v partner is the way
to do that. Just head to Faith Philly.com, click give
and you can learn more there. All right. We're ready
to dive into your questions today here in just a moment.
(16:22):
So now's the time to call 800 525 7000. Again.
That's 800 525 7000. We'll look forward to tackling whatever's
on your mind today, but lines are open. This is
the time to call 800 525 7000. Before we head
to the phones today in the news, savings rates, uh,
(16:43):
are still pretty impressive today in many online banks, even
though time may be running out. Uh, some online banks
are still offering apys at or near 5%, uh, which
is well above the current 2.4% inflation rate as of
the last, uh, reading. Of course, those rates may require
keeping a balance as high as $5,000. That can be
(17:06):
a requirement. Some financial institutions have started trimming their rates
by 10 to 15 basis points. That's about one tenth
of 1%. 100 basis points is 1%. Uh, that's signaling
a possible downward trend. Why does this matter? Well, because
many savers still have funds parked in accounts yielding less
(17:26):
than 1%. So moving to a high yield account could
add hundreds, if not thousands of dollars in interest over
a year to your savings with no added risk, especially
if you're keeping a fully funded emergency fund of 3
to 6 months expenses. So what should you do? Well,
check your current APY. That's annual percentage yield. If it's
under 4%, consider shopping around for a better rate. Watch
(17:50):
for those requirements or caps. Some accounts come at least
the top tier ones, with balance limits or monthly activity requirements.
Bankrate.com can help you locate those high yields and evaluate
the additional requirements. I will say more and more of
our listeners here at Faith and Finance Live are interested
in a banking partner that shares their Christian values. If
(18:12):
that's you, check out Christian Community Credit Union. You can
do that at Join Christian Community Comm. They have those
competitive rates, but with an institution built for Christians. So
you know that everything they're supporting with a part of
the profits are toward Christian ministries is aligned with your values. Again,
you can learn more at join Christian community.com. All right
(18:35):
let's head to the phones here. Today we're going to
dive in. We've got lines open. You can call right
now any financial question today 800 525 7000. Let's go
to Oklahoma. Hi Ryan. How can I help?
S4 (18:48):
I'm just going to deal with it. There's these ones
that have, like, connectors.
S1 (18:51):
Oh. All right, let's do this. I think Ryan had
to take another call. So we're going to see if
we can get him ready to go. And then we'll
dive into that question today. Again lines are open. We're
ready for you today. 800 525 7000. Uh, you know,
we started today by talking about, um, inheritances and what
it will look like to, uh, pass on wisdom before. Well,
(19:14):
thinking about really how important inheritances are. You know, uh,
you've you've got to recognize that when it comes to, uh,
choosing the next steward, crafting that faithful legacy is really essential. And, uh,
hopefully Gene McMahon's gave you some great tips today to
think about. Take those to heart. They're really important as
(19:35):
you consider how you might be able to leave what
God has entrusted to you. All right. I think Ryan's ready.
We'll go to Oklahoma. How can I help you, sir?
S5 (19:43):
Yes, I just heard last week you were talking about trust.
And they'll protect you. It's like. And I'm just curious.
My dad has a trust, and he has a couple
haunted houses. And I know how to protect the assets from, like,
nursing home or something like that. Or. Or if that
wouldn't work, I don't know.
S1 (20:04):
Yeah, it's a great question. Uh, you know, it's, um,
largely to do with what's called the Medicare spend down requirements.
And a trust may protect you. It depends on the
kind of trust, how it's structured. And, of course, Medicare's rules, uh,
Medicaid often covers long term nursing home cares for those
(20:26):
who To qualify, but it does require low income and assets,
so typically under $2,000 for an individual. Excluding certain exempt assets,
that would be a primary home up to a value cap.
And then you need to typically spend down those assets,
prompting the question of whether or not then the trust
(20:47):
can shield them. Let's talk about the various types of trusts.
And ultimately you'll need to connect with an attorney. But
we'll just talk generally here for a second. The most
common kind of trust folks will have is a revocable trust,
where you can make changes over time. They're normally used
for avoiding probate and estate planning, but not asset protection.
(21:08):
And as such, there would not be protection with a
revocable living trust for for your assets or your dad's
assets from nursing home costs or the Medicaid spend down. Now,
you may be able to get that, though, with a
Irrevocable trust. If it's structured correctly, you have to relinquish,
(21:30):
or he would have to relinquish control and and access
to the trust's assets. Uh, so Medicaid would not be
able to count those in a properly designed, irrevocable trust.
The downside is, though, he would be given that up. Uh,
let's talk a bit more about that after the break.
Stay right there. We'll continue to unpack this. We'll be
(21:51):
right back. Great to have you with us today on
Faith and finance live. I'm Rob West. We're taking your
calls and questions. We've got lines. Open the number 800
525 7000. You can call right now. Before the break.
We were talking to Ryan in Oklahoma. Uh, he's wondering
(22:14):
about various types of trusts that might protect his father's assets.
His dad's 78 years old and may need nursing home care.
And really, this at the end of the day, Ryan,
is something you need to get with an attorney on.
Bottom line is it really is going to depend on
the type of trust that you have. So a revocable trust,
(22:37):
definitely no protection, an irrevocable trust that's established more than
five years before needing the care may provide that protection.
And that would most often be either just an irrevocable
trust where the assets are relinquished and access to the
trust assets are relinquished. Um, given the name irrevocable. And
(23:02):
as again, as long as you get past that five
year look back period, it may in fact protect those assets. Um,
another type of trust that's very similar is what's called
a medicaid asset protection trust. That's just a specific type
of irrevocable trust designed for this purpose to shield assets
from Medicaid while you retain some benefits so you could
(23:24):
get an income from the trust, though that may count
toward the Medicaid income limits. So I think your next
step is to to visit with an estate attorney, specifically
an elder law specialist, who can walk you through all
of these things and help you understand kind of how
to approach this. The only other thing I would just
throw out, um, you know, would be just the biblical
(23:48):
perspective on this, whether protecting assets through a legal means,
you know, is something that you could feel good about
just in terms of your own convictions about it. I think,
you know, the idea behind Medicaid is for it to
kick in once assets are depleted. And so I think
you just need to kind of think and pray through
(24:09):
the ethical side of this, in addition to the legal
or the mechanical side, if that makes sense.
S5 (24:14):
Yeah.
S1 (24:15):
Okay, good. Uh, if you need an estate attorney there
in Oklahoma, Ryan, you don't have one. You can could
reach out to a certified Kingdom advisor on our website.
They'll all have a godly estate planning attorney that they
work with, and you'd want to again reach out to
somebody specifically who has elder law experience and ask about
an irrevocable trust, and perhaps more specifically, a medicaid asset
(24:39):
protection trust. And they can talk you through the the
details on it. Thank you for your call, sir. I
hope that helps. We appreciate you being on the program. Uh,
Lane is in Chicagoland. Go ahead.
S6 (24:50):
Hi. We have an adult child that we've secured Social
Security disability for, and she's been getting it for years.
And we just filed our taxes, and our sica had asked, oh,
are you reporting the monthly Social Security benefit as rent
or a gift? And we've never reported it as either
(25:13):
one of those things, because we use that money because
she lives with us. We use that money to support her. Now,
we don't always use the full amount, you know, but, um,
for everything. So I'm just wondering, are we required to
do that, or should we think about reporting it as rent,
or is it a gift? I don't even know.
S1 (25:32):
It's a good question, and it really depends on the situation.
Do you normally prepare your own tax return, or do
you have somebody do that for you?
S6 (25:40):
Someone does it for us.
S1 (25:41):
Okay. So this would be a conversation to happen with
that have with that person who could help you uh,
kind of wade through it at the end of the day. Well,
let me ask, do you claim her as a dependent
on your taxes?
S6 (25:54):
Yes.
S1 (25:54):
Okay. Yeah. So if you provide over half of her
support and she meets the IRS criteria, uh, then you
likely do. That strengthens the case for, uh, you know,
treating these payments as shared expenses, not gifts or rent.
The IRS is less likely to view intrafamily, you know,
contributions as taxable income when she's claimed as a dependent
(26:17):
for the reasons that you mentioned, uh, you know, ultimately, um,
you know, if somebody is doing, uh, a predictable amount
where there's an agreement in place and they cover, you know,
a specific amount every month that, you know, basically is
a monthly amount for a room, utilities or food. It
(26:37):
can be considered as, uh, rental income that would then
need to be reported where there's an expectation or an
understanding that this is a regular amount being paid for
her housing, where it's a gift, is when typically when
it's voluntary, it's not tied to a specific obligation. Um,
and it's coming in, you know, there's no formal agreement
(26:59):
for her to pay. It's irregular. That's where, you know,
it would be often considered a gift, uh, if it's
just a, her portion of a shared household expense. So
a proportional amount, let's say a third of the utilities,
if there's three people living there, There's no profit motive.
You know, typically that would not be reported as income
(27:21):
and seen as kind of mutual support within a a
family household. And I think, again, because she's claimed as
a dependent that would further strengthen that case. But at
the end of the day, kind of deciding exactly how
to handle this, which is likely exactly the way you've
been doing it, you would really want to talk to
your CPA about it.
S6 (27:41):
I appreciate it. Thank you very much.
S1 (27:44):
All right, Lane, we appreciate your call. Call anytime. 800
525 7000 is the number to call. Uh, let's go
to Cleveland, Ohio. Hi, Mary. How can I help you?
S7 (27:54):
Hi, Rob. Thanks for taking my call. Um, I so
funny that you're talking about special needs because I have
a special needs person question, too. Um, so my daughter
is 25 years old, and she, you know, I'm 54,
so I kind of want to put something away in
regards to a trust or what have you. I'm not
quite sure what all is really out there and which
(28:15):
is the most beneficial for a kid. Because I have
two regular typical children as well. There are 22 and 23. Um,
my question basically is I know that there's special needs trusts.
I've heard something about an able account or whatever. I
just don't know the best route to go to best
protect her, because we do have some annuities. Um, that,
(28:37):
of course, the three of them are the beneficiaries for.
So I.
S8 (28:42):
Don't know. Absolutely. Yeah. Well, I appreciate that.
S1 (28:46):
And, yeah, you could, uh, use perhaps both of them together.
And we actually did a program on this not too
long ago. Um, I'll have my team get your information
and we'll send you a link to it. But essentially,
the the special needs trust and the able account, uh,
offer a way to manage finances. And the key is
they preserve eligibility for government benefits. So, like Supplemental Security
(29:09):
Income and Medicaid. Uh, essentially the Essentially, the special needs
trust holds assets for the benefit of the person with disabilities. Uh, again,
without disqualifying them from the government benefits. It funds the
supplemental needs. It gives flexible funding so it can be
funded with family money or inheritance or even life insurance proceeds. Um,
(29:33):
and then it can provide lifetime support. It can even
be tailored to their unique needs in terms of how
the funds should be used. And you can have some,
you know, say in constructing that and putting all of
that in place. And then the trustee administers it. Uh,
the able account is similar. You can't put as much
in there. Only up to $100,000 is exempt from the
(29:57):
Social Security, uh, asset limit. Um, but that provides tax
free growth. Uh, it's easy to manage, and it has
an even wider range of uses. So it can cover
not only housing but food without impacting the SSI and
the Medicaid. And that's why a lot of people use
(30:18):
both of them. The special needs for large sums like
inheritances or long term planning, the able account for smaller
everyday savings because you can use it for more purposes.
So putting them together can be really powerful. Um, what
I would do is, is find an estate planning attorney
who has some expertise in this area to set them up.
(30:39):
But I think at the end of the day, having
one or perhaps both of them in place so that,
you know, you've got the assets there and it doesn't
affect government assistance, is going to be really helpful. Stay
on the line. We'll be right back.
S8 (30:59):
Great to have you with us today on.
S1 (31:00):
Faith and Finance Live. We're here in our final segment today.
Let's head right back to the phones. Cleveland, Ohio. Hi, Mary.
How excuse me. We just talked to Mary a moment ago.
Let's go to Florida. And, Lauren, thank you for your patience.
Go ahead.
S5 (31:15):
Hello.
S8 (31:16):
Hi, there.
S1 (31:16):
How can I help?
S8 (31:17):
Hi.
S9 (31:18):
So, um, I'm a teacher in Florida, and when I
started teaching, they had two options. You could either do
the full pension or you could do the investment plan.
But in order to do the pension, you had to
stay with the state for within the state for eight years.
So at the time, I didn't plan to stay here.
I was going to move. So I went into the investment. Um,
but now I'm 19 years in and I'm thinking that,
(31:39):
you know, maybe I made a poor choice, and I
need to I should probably switch over to the pension.
So there's a deficit in the pension. Um, however, I
do have an IRA, um, that has some money in
it that I could roll over to buy into the pension. Um,
and there still would be a little bit of deficit
that I'd have to, um, pay for myself. So I'm
(32:02):
just not really sure if, if that's a smart idea
to do that or to just leave the money in
the investment plan, but whatever it's invested in doesn't seem
to be getting a very good return. Even before the
market kind of started going down. But I know that, like,
what it invests in is like some kind of funds,
but I can I know I can take control of
(32:22):
that and kind of change what the things that are
is being invested in so that maybe try to, I guess,
gain back some of the loss. So I just I'm
not really sure what the best option is.
S1 (32:33):
Yeah. Well, I'll give you some thoughts. I mean, it
may be helpful just to have an advisor look at
all the options that are available in the investment plan
and just help you look at historical performance and maybe
run some scenarios for you to play out. You staying
and getting, you know, a more reasonable rate of return,
perhaps by repositioning some of those investments moving forward and
(32:55):
projecting what you would have at retirement versus the pension plan,
you know, a lot of, uh, you're going to have
to work with your specific retirement plan. To determine, you know,
whether they'll let you move over. And to your point,
it sounds like you've already investigated that a bit. And
they will usually you have like a one time option. Um,
(33:18):
and you need to really think through what the implications
are would be of taking that option and you know,
the costs that will come with it. Um, you know,
the benefit of staying with the investment plan is you
get to choose how you invest. Now, you know, depending
on which investments you've selected that may or may not,
you know, work out for you. And I wouldn't want
(33:39):
you to try to be, you know, ultra aggressive to
kind of, quote, make up for lost time. Uh, I'd
want you to have an appropriate investment mix for your
age and time horizon. But it also could be that
you were maybe too conservative. And so you do need
to be repositioned. Um, you know, a lot of times
there's portability. You have the potential for higher returns, and
(34:02):
unused funds can be passed to heirs, which is typically
not the case with the pension. And you get the
obviously the tax advantages. The benefit of the pension plan
is you've got a fixed monthly payment for life. You
don't have the market risk. So a lot of people
get more peace of mind by just knowing that they're
not having to bear that full risk. And then a
(34:23):
lot of times they include cost of living adjustments along
the way to to make sure that it keeps up
with inflation. And then usually if you're married, you'll get
a survivor's option there as well. So I think the
key to determining whether or not it makes sense to
stick with what you've got, even if you were to
to reposition some of the assets versus moving over would
(34:43):
ultimately be, you know, younger teachers under 40, typically the
investment plan is better if you're, you know, over 50.
Usually the pension is the better option because it's that
guaranteed income that reduces risk closer to retirement. If you're
between 40 and 50, it could kind of go either way,
depending upon just kind of your risk tolerance and what
(35:06):
you're feeling about, you know, what would give you the
most peace of mind? Um, you know, usually years of
service is a big factor. But as you said, uh,
you know, you're approaching 19 or maybe you're already at 19,
so you're getting to that place where, you know, that
pension could be pretty attractive. Again, assuming you understand the
full amount of what it would take for you to
(35:28):
actually get into it. And then you'd have to really
compare what your guaranteed monthly income would stream stream would
be in the pension versus what your need is. And
make sure that it, you know, it does fit into
your overall financial plan in terms of what you think
your budget will look like in that season. So I
think going back to where I started, an advisor could
(35:49):
help you first evaluate, you know, where are you at
in terms of the the investment mix in that investment plan? And,
you know, could you just stay where you're at and
make some changes versus you actually buying into the pension
option and then running some scenarios on what will it
actually look like to fund your lifestyle in retirement and
(36:11):
what will that pension, you know, produce. And does that
cover the gap? And if so, you may be thrilled
with that. To know that you you've eliminated the market
risk and you've, you know, covered what you need to
on a monthly basis, which will give you, you know,
more peace of mind. And then, you know, I think
once you see those scenarios put in front of you,
(36:31):
perhaps it'll become more clear. You know what the better
option is for you, given where you're at today? Does
that make sense? I know I threw a lot at
you there.
S9 (36:40):
Yeah. It's just it's just making that decision. That's hard
because like I said, I have this big chunk of
money in the IRA that I'd have to pay into
the pension. So it's like it's. I don't know if
it makes sense to do that or just leave them
separate and keep kind of going as it's going. So
like you said.
S1 (36:57):
And that's why I think, yeah, you're never going to
be able to, I think, have complete peace of mind
until you really see those scenarios played out over time.
And so that's where an advisor can run some illustrations
to say, okay, let's say you're we leave your IRA
where it is. And let's say we run that out
with just a reasonable annual growth rate to determine what
(37:19):
will ultimately have in the IRA if you if you
leave it alone. And then if we reposition your investment
plan with the state, here's what that could look like.
And then based on those projections, here's what we think
that might be able to, you know, you might be
able to pull out on a monthly basis and keep
that for the rest of your life, which, by the way,
(37:40):
you would be able to leave to your heirs, which
is a nice feature, versus giving up the investment plan
and all or the majority of the IRA in exchange
for a monthly check. And what that would mean, you know,
for you and or your spouse. But it goes away
at death. Um, and then I think once you see
those real numbers in front of you, uh, you know,
(38:02):
I think it'll become clear which is the better option,
but it's not something you want to guess at. You
really do want a professional to help you kind of
run those scenarios out. Because I think once you see
it in In plain sight, it'll be pretty clear.
S9 (38:16):
Yeah. Well, thank you for your help, I appreciate it.
S1 (38:19):
You're welcome. I would head to our website. If you
don't have an advisor. Com click find a professional. Any
one of those in Florida would be able to just.
You could pay them for their time. They could run
those scenarios. And you'd have a much better idea on
what you need to do at that point. We appreciate
your call today. Uh, hey, in the final segment here today,
we're joined by Bob Dole each Monday and a great
(38:42):
day to hear Bob's thoughts, because a market down significantly today,
about a thousand points on the Dow, 2.5% about the
same for the S&P and the Nasdaq. Uh, let's find
out what's weighing on the markets. Hi, Bob. Great to
have you.
S10 (38:56):
Howdy. The good news is it was down 1250 earlier,
so we've had a 300 point rally here in the
last month. Hey, an hour of trading?
S1 (39:04):
Yeah, we'll take that. Right.
S10 (39:06):
We'll take it right.
S1 (39:07):
Bob. What I mean, is it same song, second verse.
What's weighing on the markets today?
S10 (39:12):
Yeah. The big excuse today is, um, uh, President Trump
attacking the fed and, uh, wanting to interfere with its independence.
You know, foreigners in particular. But Americans don't like it either. Uh,
the foreigner, uh, show up was in the dollar decline,
a pretty big decline today. Um, so we got to
(39:33):
keep our system intact, uh, in order for this market
to to grab hold.
S1 (39:39):
Bob, we've heard a lot of talk about, uh, bond yields.
We've also heard about weakness in the US dollar. Anything
to be concerned about there? Or do you think that's
just temporary while we wait for the trade deals?
S10 (39:51):
Well, the dollar has had a lot of strength in
recent years, as you know. the trade deals, if we
get them, could bring some dollar strength back. But there
are a growing number of people that are saying, look,
the U.S. has benefited from the way the world has
been set up. That is, we are able to sell
our goods overseas because we have cheap labor overseas. And
(40:15):
that has accrued to the profits of U.S. companies. And
now we're starting to fiddle around with that. And maybe
that advantage goes away. Maybe the dollar has to go
down some. I'm not saying I'm in that camp, but
that's part of why the dollar is selling off.
S1 (40:28):
Yeah. Bob, what about just the implications of all this
for those listening today? I mean, if we have time
on our side, we can wait out this market turbulence.
And you know what? If we're honest, we've had some
pretty good years and even some good decades leading up
to this point. So perhaps we have a little bit
of room there. But in terms of inflation, in terms
of what we're going to feel over the balance of
(40:50):
this year as consumers, how do you feel like this
year is going to play out?
S10 (40:55):
You know, so we're probably going to see a little
more inflation because of the tariffs. We're going to see
a little less growth because of the uncertainty that's created.
The concern about the strength of the economy probably some
more job losses. Rob I haven't used the word recession,
but it could happen. And markets will, you know, march
(41:17):
to that drumbeat, which probably means more volatility but in
both directions. It's not going to be a one way
street down.
S1 (41:23):
Last question.
S10 (41:24):
Bob.
S1 (41:25):
Yeah.
S10 (41:25):
And you mentioned sorry. And you mentioned the long term
at the front end of your question. Yes. For goodness sake,
if you're investing for the long term, which everybody that's
in the stock market should be for the long term. Relax.
We've seen these things before. They're not fun to live through. But, um,
we will grow again.
S1 (41:42):
Yeah. Bob, if we've been holding on for 2025, perhaps
waiting to buy that house, thinking this is the year
that rates are going to start coming down, we really
haven't seen it yet. In fact, they've ticked back up recently.
Where do you think we go with interest rates from here?
S10 (41:57):
Yeah. Great question. A lot of crosscurrents. They're typically economic
weakness brings lower interest rates because it's usually associated with
lower inflation. We're not getting that. So interest rates are
probably going to stay stubborn here for a while. Unless
we have a recession then they'll come down.
S1 (42:12):
Okay. That makes sense. Bob. We appreciate your time as always.
S11 (42:17):
Have a great week.
S1 (42:18):
All right. That's Bob, a Bob doll. Uh, there's a
lot of Bob's. That's Bob doll. He's CEO and chief
investment officer at Crossmark Global Investments. You can sign up
for his weekly dolls deliberations. Crossmark global. Com. I read
it every week. It's a great read. Uh, big thanks
to my team today. Deb, Jim, Dan, Darina certain couldn't
(42:38):
certainly couldn't do this without them. And the entire team
here at Faith by Faith and Finance Live is a
partnership between Moody Radio and Faith fi. And we'll see
you tomorrow. God bless you. Buh bye.
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On Purpose with Jay Shetty
I’m Jay Shetty host of On Purpose the worlds #1 Mental Health podcast and I’m so grateful you found us. I started this podcast 5 years ago to invite you into conversations and workshops that are designed to help make you happier, healthier and more healed. I believe that when you (yes you) feel seen, heard and understood you’re able to deal with relationship struggles, work challenges and life’s ups and downs with more ease and grace. I interview experts, celebrities, thought leaders and athletes so that we can grow our mindset, build better habits and uncover a side of them we’ve never seen before. New episodes every Monday and Friday. Your support means the world to me and I don’t take it for granted — click the follow button and leave a review to help us spread the love with On Purpose. I can’t wait for you to listen to your first or 500th episode!