December 2, 2025 • 42 mins
Giving Tuesday serves as a wonderful reminder of how God calls us to live generously. But what if this day could also inspire a lifestyle of intentional giving all year long? On the next Faith & Finance Live, Al Mueller joins Rob West to talk about how to give with impact, evaluate ministries well, and experience the joy of stewardship. Then, it’s on to your calls. That’s Faith and Finance Live—biblical wisdom for your financial decisions, weekdays at 4pm Eastern/3pm Central on Moody Radio.
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Episode Transcript
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S1 (00:08):
Giving Tuesday is a wonderful reminder of how God calls
us to live generously. But what if this day could
also inspire a lifestyle of intentional giving all year long? Hi,
I'm Rob West. Today we'll talk about how to approach
generosity with both heart and wisdom. So our giving reflects
God's purposes, not just the moment. Al Mueller joins the
(00:29):
show today to share how to give with impact, evaluate
ministries well, and experience the joy of stewardship. And then
it's on to your calls at 800 525 7000. That's
800 525 7000. This is faith and finance. Live. Biblical
wisdom for your financial decisions. Joining us today is Al Mueller,
(00:53):
founder and CEO of Excellence in Giving and a former
executive with Morgan Stanley and UBS. Yes, al. Great to
have you back with us.
S2 (01:01):
A pleasure to be here with you, Rob.
S1 (01:03):
Al, let's start here. What does Giving Tuesday mean to you,
and how can believers approach it with a heart of stewardship,
rather than simply giving on impulse?
S2 (01:12):
Well, Giving Tuesday is a great opportunity to begin acting
on generosity, but it's also a moment to pause and
align with God's purposes. Stewardship asks not just what we give,
but why and where. Uh, second Corinthians nine seven reminds
us that each one must give, as he's decided in
his heart, not reluctantly or under compulsion. For God loves
(01:34):
a cheerful giver, and it's a chance to be intentional.
We can link our gifts to ministries that are both
high impact and faithful, and we get a chance to
be prayerful and strategic. And generosity then becomes part of
our worship. So it's less about a single day and
more about cultivating a lifestyle of generosity.
S1 (01:52):
Yeah, thanks for that distinction giving. That's not only spontaneous,
but also intentional. So let's then get practical for a minute.
What does that look like in practice?
S2 (02:02):
Well, I think God gave us both a head and
a heart. He didn't say pick one. So we need
to look at the different opportunities with both the head
and the heart and say, well, what sort of kingdom
outcomes do I want to see? And stewardship is really
about impact. God is a God of measurement, and he
loves seeing the fruit of transformed lives. And so should we.
(02:23):
So Giving Tuesday can be that starting point for the
year long posture of generosity. And we want to encourage
sort of a both end approach to giving not an
either or approach. And some will be planned and some
will be spontaneous.
S1 (02:36):
Yeah I love that. Head and heart. Now, al, you
lead Excellence in Giving, which equips families and foundations to
give wisely. So let's talk about how your team helps
donors bring greater excellence and purpose to their generosity.
S2 (02:51):
We're essentially serving these families as a foundation staff would,
and we want them to have more information so they
can give more effectively. We provide research, due diligence and
accountability for the ministries that they fund. And our goal
is to have clients go from being a reactive giver
to more proactive givers. They want to be, uh, the
(03:13):
spirit led, but they also want to engage with facts
and information. And ultimately, our mission would be to help
the clients experience the joy of generosity. And they get
that by making high impact gifts and get, uh, really
high quality reports back that they can use to celebrate.
S1 (03:32):
I know you and your team are world class in
what you do. We're going to share some ideas today
that will be helpful for anybody. But who is your
typical giver client? What do they look like in terms
of a profile?
S2 (03:43):
Our clients are in what we would probably consider ultra
high capacity. They have the ability and desire to give
away $1 million or more each year, and out of
a source of income or or sale of assets, and
they have a huge variety of things that they want
to support both domestically and internationally. And the main common
denominator they want to give to things that work.
S1 (04:06):
Yeah. Well, and obviously you do that with great care.
And as you said, you provide really exciting reports for
them to celebrate. It's all around intentionality, but you don't
have to give at that level to give intentionally, do you, al?
S2 (04:19):
Not at all. Not at all. Everyone you know can
do their own homework. Um, there's a lot of reasons
why that there's a lot of resources to look at
different ministries, how they perform. You want to ask certain
questions and and everyone should do their own homework. I mean,
I think that, you know, as a former person served
on Wall Street, served a lot of very high net
(04:41):
worth families and organizations. I, I would I would have
probably been fired if I told them I was getting
my information by things that just came to me in
the mail. Right. You have you have to do your
homework and, everyone can do some homework.
S1 (04:54):
Yeah, that's exactly right. Well, we're going to continue to
talk about giving wisely and intentionally just around the corner
with Al Mueller. We'll talk about how do you evaluate ministries.
We'll talk about some red flags that might make you
think twice before giving. We'll also talk about something called
collaborative giving. Al Mueller is with us today. He's the
founder and CEO of Excellence in Giving. And a lot
(05:17):
more to come just around the corner. Stay with us.
It's Giving Tuesday and we're talking about giving wisely and
(05:37):
intentionally to help us do that. Today is my good
friend Al Mueller, founder and CEO of Excellence in Giving.
They come alongside high capacity givers to make sure they're
giving strategically and intentionally with some incredible due diligence and
reporting after the gifts so they can see the real impact.
And al, even though you all serve high capacity givers,
(06:00):
you know, the principles and ideas we're talking about today
really apply at any level of giving. It's really just
about being strategic and intentional. And one piece of that
is evaluating ministries. So what key things should listeners consider
when deciding where to give?
S2 (06:16):
I think the starting point would be to ask the
ministries what problem they're trying to solve and what they
think the root cause of that problem is, and what
their results have been when they've tried to solve that problem.
We should look for fruit and measurable outcomes that would
demonstrate most cases life change. And we would want to
(06:38):
review their leadership stability, their donor retention, their staff turnovers.
And ministries will provide honest, timely reporting that helps you
build transparency and accountability. They, the ministries, really should communicate
clearly how the gifts are being used and a strong
ministry will welcome that. They'll welcome your questions, and they'll
(07:01):
want to see accountability as part of their discipleship and
part of their stewardship.
S1 (07:05):
Yeah, that's really helpful. And on the other side, what
are some red flags that might make you think twice
before giving?
S2 (07:12):
Well, I think that the vagueness or vision without a
plan sometimes refer to that as a ministry hallucination. They
it would be similar to someone walking in and saying,
I'd like money to build a house, but I but
I don't have any blueprints or any plans or any
cost estimates. I think you'd be pretty reluctant to start
having someone build your home without blueprints or plans or
(07:34):
cost estimates, but I think a ministry that has an
overemphasis on emotion or urgency, and instead of results, they
sometimes will lack reporting or they're unwilling to share outcomes.
Sometimes they'll overspiritualize it and say, you really can't measure
what God does. And there's also a concern sometimes that
there'll be an overdependence on a single donor. Um, and
(07:58):
that there's a constant appeal for, for more money usually
indicates that they're in financial trouble.
S1 (08:04):
Al, would you encourage givers to ask what percent of
every dollar gets to the actual cause or issue versus
administrative costs?
S2 (08:12):
I would I think that looking at the how much
ministry comes out on the other side is probably even
more important than how much they're cost to do ministry,
because ministry has different seasons. They might have just hired
a new development director, and that person that him or her,
has not had time to start developing or cultivating relationships.
(08:33):
So they may have some sort of peaks and valleys.
I think you want to look at it over time,
not just any one single year.
S1 (08:39):
Yeah. That's helpful. Now, I know there's a newer trend
in giving around collaborative giving, and I know you really
like that. How does that work in practice? And why
is it so impactful?
S2 (08:50):
Well, I think there is a trend towards that, that
collaborative giving pools are putting like minded donors together for
greater impact. I think that ministries can get larger strategic
grants rather than individual. I would say piecemeal funding. Yeah.
If a ministry tried to get $1 million and they
were trying to go to large Christian foundations or individual donors,
(09:11):
they'd have to ask a lot of different donors if
they can go to one single pool of capital that
has a similar vision and convince them and lay out
their plans and start working together strategically. Then it avoids
duplication and saves the ministry quite a bit of time.
And I think also it's a great model of unity
in the body of Christ for the donors to work
(09:33):
together with a ministry to accomplish something bigger.
S1 (09:36):
Yeah, I love that. How do you strike the right
balance between trust and accountability? Because I know some donors
are concerned about crossing the line into micromanagement, and nobody
likes that.
S2 (09:47):
No, I think it goes back a little bit to
the our president, Ronald Reagan, who said trust but verify.
And I think the idea of accountability isn't necessarily a
request for control. It's really a request for clarity and information.
And I think that donors would like to understand the
(10:07):
executable plans and measure results and that, you know, healthy
relationships are information given and not not control driven. I've
encouraged some industry leaders to think about reporting and change
the word to blessing. I think almost every ministry leader
would like to bless his donors. And I think good reporting,
good information is really a key way to bless the donors.
S1 (10:31):
I love that idea. Now let's turn our attention to
the next generation. There's a lot of studies that are
have recently been completed or are underway right now. Just
looking at this next generation of givers, What are you
seeing in terms of trends around how younger givers are
approaching generosity differently than their parents?
S2 (10:50):
Well, this generation is definitely more international than their parents.
They understand things going on around the world almost in
real time. They are much more results oriented. They want
to see what happens before the gift and then after
the gift. They're experiential. They want to do site visits.
They want to have direct engagement. They give from conviction,
(11:11):
not just obligation. And it's exciting to see the young
donors develop their own version of their financial discipleship and stewardship.
They have a passion for transparency and impact, and I
think they're going to reshape the the future of Christian philanthropy.
S1 (11:26):
Yeah. What about just the actual dollars given? Is there
any indication that we're going to see an uptick in
giving as this new generation begins to be the drivers?
S2 (11:36):
I don't know if it might be a little too
early to tell on that, Rob. I think that they
are more willing to give up. I don't know what
the dollars will look like. I think there's going to
be a big wealth transfer from parents to the children.
And I would hope that a lot of that transfer
will be come in the form of philanthropic capital, or
at least capital that could be used for kingdom purposes.
(11:59):
So I think they'll they'll be inheritors that will have
an opportunity to do that, put significant dollars to work.
S1 (12:06):
Well, I love that they want to attach meaning to money,
and I think that is going to result in some
significant giving. But I think the trends you've highlighted here
are really significant. Al, you've said that there's an important
distinction between being generous and being a steward. Unpack that
for us.
S2 (12:22):
Well, the stewardship I mean, if you went back to
the first century, the steward was someone who was in
charge of the family, the finances and the fields. And
they were they were very carefully selected. I mean, if
a noble person was going to hire somebody to be
a steward, there was a lot of responsibility that went
along with that. And the steward had to know what
was in the heart and mind of the master and
(12:43):
execute accordingly. So I think a steward is someone who
has to do their homework, and they have to give
with discernment. And I think that's just a higher calling
than someone who is generous. I think the steward has
to know the master and what the master wants done.
And if we believe that all the resources we have
in our control are really ultimately the belong to the master,
(13:06):
belong to the Lord, then we have to find out
from the Lord what he wants done with his resources.
And that will be the the goal or the finish
line for us to hear that. Well done, good and
faithful servant.
S1 (13:17):
I love that. Now we're just about out of time.
Where can folks go to learn more about excellence in giving?
S2 (13:22):
Our website is W-w-w Excellence in Giving. Com and we
have lots of examples and research summaries. And we also
have a monthly e-newsletter that comes out and has a
lot of interesting topics and philanthropy. We'll be happy to
see some snapshots of the ministries. Some stories of the
way our clients have given us some results from those gifts.
(13:44):
And it'll be a great opportunity to to start a discussion.
So excellence in giving would be where you'll find most
of our material.
S1 (13:53):
Al, thanks for joining us today. It's been a pleasure.
S2 (13:56):
Thank you Rob. Enjoyed it.
S1 (13:57):
That's Al Mueller, founder and CEO of Excellence in Giving.
By the way, speaking of giving, if you'd like to
partner with us here at Faith fi, you can consider
becoming a faith fi partner when you go to faith partner.
All right. Your calls are next. The number 800 525 7000.
That's 800 525 7000. I'm Rob West, and this is
(14:19):
Faith and finance. We'll be right back.
S3 (14:32):
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 (14:56):
Well, it's Giving Tuesday. We're glad you're along with us today.
Great to have my friend Al Mueller today. I know
you've taken some thoughts and ideas away about how you
can give wisely and strategically, and I love today that
we turn the corner from Black Friday and Cyber Monday,
and where the focus is all about consumerism. And we
move toward thinking about how do we give, how do
(15:18):
we bless others, how do we hold what God has
entrusted to us loosely and give as an overflow of
the grace extended to us? Out of gratitude to God
for what he has done on our behalf through the
shed blood of Jesus. And we give as unto the Lord.
We give to meet needs. We give to participate in
God's activities. Hopefully today give you a few things to
(15:40):
think about in terms of giving wisely. Now, if you're
looking for somewhere to give, you're looking for the ministry
on the heart of God. Uh, there's all kinds of
things you can see in Scripture around that. But in
terms of the practical tools, uh, one of the tools
to consider as you do your giving, uh, during this
giving season is a donor advised fund, uh, the National
(16:04):
Christian Foundation, our friends call it a giving fund, but
you can open one quickly and easily. It will allow
you to give not only cash directly into the fund.
That becomes a charitable checking account of sorts, but also
appreciated assets. And that's key, because when you give them
away before they're sold, you don't pay the capital gain.
(16:24):
That means for an asset, either in full or in
part that you want to give away anyway, you might
as well give it to a donor advised fund, then
sell it. that funds the donor advised fund, and then
you can grant it out with the click of a
button at your leisure. You can decide and wait and
pray and think about where you want to give it.
And then over time, whether that's days, weeks, months or
(16:46):
even over a couple of years, you could give it
away as the Lord leads. We recommend the National Christian
Foundation to open a donor advised fund if you head
to faith. That's faith. I don't know. Excuse me. Faith.
I know that's where you want to go. That will
(17:06):
help you open that donor advised fund quickly. It'll take
you less than five minutes, and you will find that
it's quickly becomes one of your favorite giving tools. Well,
we're going to be taking your calls and questions today.
We've got some lines open. So if you have a
question call right now 800 525 7000. Again that's 800
525 7000. Let's dive in. We're going to begin in
(17:29):
Pennsylvania today. Steve go ahead.
S4 (17:32):
Hi, Rob. Thank you for taking my call. I'm a
longtime listener. I used to listen back when Larry Burkett
started the show. So, um.
S1 (17:42):
Cool.
S4 (17:43):
Really, really loved his advice. And I love your godly wisdom, too.
S1 (17:48):
Um, well, thank you. I appreciate you mentioning Larry Burkett.
S4 (17:52):
Absolutely. Um, so my question is, uh, I have an
emergency fund, uh, set up, and I've had it in
a savings account, had it there for a little while,
wasn't collecting much interest. Tried a CD for a couple months.
Same thing. Um, not able to get to it, you know,
(18:13):
it had to be matured and whatnot. Just wanted to
know what your thoughts were on putting, uh, the emerging
my emergency fund into a money market. Mutual fund?
S1 (18:28):
Hmm. Yeah. Yeah. The only downside is the the money
market mutual fund. While it pays a higher rate of
interest typically than a traditional savings account, it's not FDIC insured,
so the value can technically fluctuate slightly, although it's extremely
rare and withdrawals can take a day or two. It's
(18:50):
not instant like the bank, so while very safe, doesn't
have the guarantee of a bank account. So for some folks,
that's a that's a deal killer. For others, they say, no,
it's such a, you know, a modest amount of additional risk.
I would rather, you know, get that higher yield. That
really is my primary objective. And I think if that's
(19:12):
the case, then I would say, yeah, you know, the
fidelity government money market or the Schwab Value Advantage money
market or even a, a Vanguard federal money market fund,
those can be great. Give you a little bit more yield.
You just need to understand that you you don't have
that FDIC insurance. Um, and you don't have immediate access
(19:33):
to the money like you do with a bank product?
S4 (19:38):
I see. Okay. All right. Um, yeah. My risk aversion.
I'm okay with the FDIC. Um, but if I needed
it right away. You're saying it would be a day
or two?
S1 (19:55):
Typically, yeah. Because you've got to wait for the, uh,
the transaction to settle and and clear, and then, you know,
you could take a withdrawal at that point. So it's
just not immediate like it would be with a savings account. Uh,
you know, in terms of the funds, um, you know,
having a problem, they call it breaking the buck. Because
basically what happens is the idea behind a money market
(20:17):
fund is it always is priced at a dollar per share. Uh,
it's only happened once that I can think of. You know,
there was one, uh, in 2008, where it fell to $0.97.
You know, after Lehman Brothers, um, you know, they held
Lehman Brothers commercial paper during the financial crisis and that,
(20:39):
you know, event shook the industry and it triggered some reforms.
Since then, they've made, uh, funds much safer. The SEC
has strengthened the rules around higher credit quality, more liquidity.
But the bottom line is it can happen and it
has happened. And so you just need to understand that.
But again, I would underscore the idea that it's extremely rare.
S4 (21:02):
Okay. Okay. Well thank you very much. And, uh, God
bless you.
S1 (21:08):
All right. Thank you as well. We appreciate you, Steve,
and thanks for mentioning, uh, the late Larry Briquet. I, uh,
walk in the shoes of some giants. Uh, Larry Briquet originally,
then Howard Dayton, one of my mentors, uh, hosted the program.
After Larry passed away in 2003. Uh, Howard, uh, passed
it on to me, uh, in 2017. And we have
(21:30):
an amazing team. Boy, what a privilege to come alongside
you listeners each day to encourage you out of God's
Word in your role as a steward, to give you
some practical advice. And we'll continue to do that right
after the break. So if you have a financial question,
now's a great time to call. The number is 800
525 7000. That's 800 525 7000. Stick around. Well it's
(22:02):
a giving Tuesday here on faith and finance. We're so
glad you're along with us today. We've got, uh, looks
like one line open 800 525 7000. Speaking of giving.
Giving Tuesday. Uh, faith and finances. Listener supported. This is
a big month for us as we head toward year
end trying to close the gap. We've had a two
month goal of 5000 to finish out our listener support
(22:26):
for the year, and we're making some great progress. We're
incredibly thankful for so many of you who have already responded.
We've already seen, just over this first month of this
two month period, a little more than $80,000 in giving
come in, which means we're about 95,000 away from our goal.
We've got about 30 days to do it. So if
(22:47):
you love the program, maybe you've taken something away that's
been helpful for you, or you've just been encouraged by
the biblical wisdom and counsel, we'd love to invite you
to support the ministry here. At year end, every gift
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And with every gift of any amount, we'll be able
to send you a copy as a thank you of
(23:09):
our new devotional, Our Ultimate Treasure, that comes out right
after the first of the year. Just head to faith.
Com that's faith. Com slash give. All right, let's head
back to the phones. Tennessee. Sharon. How can I help?
S5 (23:24):
Yes. Good afternoon. Rob. My son was looking to buy
a home. Are you there?
S6 (23:31):
Yes, ma'am. Hello.
S5 (23:32):
Oh. I'm sorry. Um, my son was looking to buy
a home, and he found a place. But it isn't
eligible for a mortgage because of the condition of the home.
So the owners have offered to let him do a
rent to own contract where he works on the house
and gets it to a condition that he could then
(23:53):
hopefully get a mortgage on it. My concern is what
are the pitfalls of that and how can he, if
he's in a contract to rent to own, will he
still be able to get a mortgage or other restrictions
on that? Because he's going to be putting a lot
of work because the House is in, you know, in
a lot of disrepair. There's a lot of work during
(24:13):
this time.
S6 (24:14):
Yeah.
S1 (24:15):
Well, this situation has a lot of red flags, there's
no doubt about it. And so your son does need
to proceed with caution. Rent to own can work, but
only if the contract protects him. So right now the
risk is on him and the benefit is on the seller. Uh, so,
first of all, can he get a mortgage later if
he signs a rent to own contract now? Yes. For sure. Uh,
(24:39):
you know, being in a rent to own agreement doesn't
prevent him from getting a mortgage later. The lenders don't
really care about the lease itself, but he won't be
able to get a mortgage on a home unless the
property is legally his or the contract gives him the
legal right to purchase. He also can't get a mortgage
if the house isn't livable or has people still occupying.
(25:00):
It has to be safe. It has to be lender approved.
It has to be vacant. It's got to meet the
FHA and conventional guidelines. So it's going to have to
be repaired before the lender will issue the loan, which
means the contract has to protect him if he does
repairs up front. Uh, second, I would say, you know,
(25:21):
the the dangers signs are he's doing repairs on a
home he doesn't own. So if the seller changes their
mind or sells it to someone else, your son could
potentially lose everything he's put in. Um, you know, and
at the end of the day, um, if the house
never becomes livable enough for a mortgage, he may be,
(25:45):
you know, stuck in this situation, continuing to rent without
the ability to get a mortgage on the home because
it's going to have to meet that condition, being being
put on it by, by the lender. Um, I would
also say, you know, if the seller has debt or
liens or any kind of legal problems, your son's investment
(26:06):
of the repairs could disappear as well. And so that's, uh, that's,
you know, really challenging. So I would think, you know,
the way to do this, which again, it certainly has risk,
but he wouldn't want to sign anything without a real
estate attorney reviewing it. And make sure that the purchase
option has a clear price and timeline, and what counts
(26:28):
as livable condition and a locked in price that can't
be changed later. And it probably needs a clause giving
him credit for repairs. So, you know, every dollar he
invests in renovation should be counted as either rent credit
or maybe a purchase price credit. And then there needs
(26:48):
to be a refund clause because if the seller backs out,
he needs to be reimbursed for the repair costs. Does
that all make sense?
S5 (26:58):
It does. Um, so he needs what the best way
to do that was to have a real estate attorney
look over a contract, because they're going to go to
an attorney, but it's her attorney and do a contract. And, um,
I just want to make sure that he's protected. I
don't want him to put all that work into it,
you know, and then maybe couldn't get a mortgage. And
(27:18):
what if they're, you know, maybe there's something they can
in that, you know, agreement. That's my big concern. But
so a real estate attorney and make sure that in
this contract they have a price and a timeline, a
locked in price credit for repairs. I was trying to
make notes really fast.
S6 (27:36):
Yeah.
S1 (27:37):
And then, you know, I think also that the proof
that the seller actually owns the home free and clear
would be important. Um, you know, and yeah, so, I mean,
those are the big things that I would want in there.
And then a refund clause, which, you know, if the
seller backs out, he gets reimbursed for the repair costs.
I would also say he really needs his own real
(27:59):
estate attorney that is paid by him. That can represent
his interest. So whatever rent to own agreement is created
by the seller's attorney should be reviewed by an attorney
that he retains, and it's not going to take a
whole lot of time. It time. It shouldn't be terribly expensive,
but I. I want somebody who's, you know, obligated to
(28:19):
him to protect his interests in this.
S5 (28:23):
Yeah, that's what I want. That's exactly what I want.
I don't want to see him put all this into this.
And then something happened. And it's just because he wasn't aware. He,
you know, because he thought maybe he was safe. Because
they sat in front of attorney.
S6 (28:35):
Yeah, exactly.
S1 (28:38):
So I think you're on the right track here. And
it shouldn't be hard to find a real estate attorney
that he could engage for the purpose of just reviewing
the contract and, you know, redlining the agreement to say, no,
we need to change this, or we need to add
that and and make sure that his interests are protected. But, Sharon,
I appreciate your call today. Thanks for being on the program.
Lord bless you. Uh, 800 525 7000 is the number
(29:00):
to call. Let's go to, uh, Chicago. Lisa. Go ahead.
S7 (29:04):
Hi, Rob. Thank you for taking my call. Sure. Um,
my husband and I, we're, uh, blended marriage. Uh, we
have adult children, and we're working on our estate planning,
and we were introduced to a trust AB trust for.
Are you familiar with the AB trust?
S6 (29:24):
I am, yes.
S7 (29:25):
Okay. So I'm just wondering, um, what kind of pros
and cons on that and if it's something that might
not benefit either one of us. Um, what would there
be comparable to that, that would, um, kind of have
security in our children getting their inheritance?
S6 (29:45):
Yeah.
S1 (29:46):
Yeah, it's a great question. And I'm not an attorney.
You do need an attorney to kind of help you
walk through the various options here. I mean, essentially the
AB trust, uh, in the most basic terms is the, the,
a part of the trust is the survivor's trust. So
the surviving spouse controls that portion. And the B portion
(30:08):
of the trust is the bypass trust where it's locked
in for the deceased spouse's beneficiaries, often their children. So
the surviving spouse can access income and sometimes principal, but
can't change the beneficiaries. So it protects the kids inheritance
even if remarriage happens and if long term care is
(30:31):
needed or, you know, family dynamics. So that's not the
only way to handle this, but it is certainly a
way to handle it. But you need, I would say,
an estate planning attorney who really specializes in blended families
and asset protection. I hope that helps. Thanks for your
call today. Stay on the line. We'll talk a bit more.
We'll be right back. Great to have you with us
(31:00):
today on Faith and Finance live. I'm Rob West. We're
taking your calls and questions. Let's head right back to
the phones. K.S. Florida. Cindy. Go ahead.
S8 (31:09):
Hi, Rob. Um, I am 68 years old, in fairly
good health. My landlady is 82 and she just recently
started declining. She has two children that live out of state.
Don't want the house that I would come with. You know,
I live in. There's a separate two houses on her
property and I'm in one of them. And so my
(31:33):
son said, well, maybe you should take some of your money.
And I know this sounds awful, and I'm not bragging. Please.
I got plenty of money. Um, I don't have any
bills except for that. You know, that rent and, um,
I've provided for my kids, you know, and grands and
all that stuff, but he said you need to start
looking out for yourself. And if she dies, you don't
(31:55):
have a guarantee. It's not written in her contract that
I have a place to live. And he's suggesting that
I buy my own house. Am I too old for that?
S1 (32:06):
You know, uh, it really comes down to, I think,
preparing for housing stability in retirement, not necessarily trying to
guess what your landlord might do in the future. So,
you know, at 68, a housing security, security is is
an important financial consideration. And so I wouldn't be able
(32:28):
you know, I wouldn't assume that you'll automatically be able
to buy her home. Um, you know, even if it
she wants to sell it to you, the home may
go to heirs, or they may want to sell it
on the open market. Um, the house could be sold
quickly to investors. I mean, there's a number of things
that could play out here. So I wouldn't count on that.
(32:49):
I would say, you know. Yes, you should start saving now.
And I would say, um, you know, think about the
future down payment and the moving costs and so forth. Um, and,
you know, should you invest the money instead? I think,
you know, as long as you have enough set aside
to buy that home. Whenever you decide it's time, you
(33:11):
know to move on. And and if that time comes
and buy something of your own, I wouldn't want to
have all that money locked up in the market where,
let's say, two years from now, there's a recession and
the market's down 20 or 30%, and you're having to
sell it at a loss. I want I would want
to make sure that we carved out maybe bucket one,
which is your housing fund, where you've got enough for
(33:34):
the down payment and the moving expenses in the first month,
and the deposit and a cushion. And then bucket two
becomes your long term investments, uh, beyond the housing cushion, where,
you know, you don't have to have to be concerned
about pulling that money out prematurely. Does that make sense?
S8 (33:53):
It does. It does. So should I also be putting
and I heard you talk about this on the show before.
Insurance for an old folks home. A nursing home, um,
you know, is that a wise investment again at 68? And,
you know, we're not promise our health or our.
S1 (34:12):
Right. Sure. Uh, what are your. If you don't mind
me asking, what are your total investable assets?
S8 (34:20):
You mean, how much do I get a month?
S1 (34:22):
No. How much do you have in in, uh, on
your balance sheet. So investment accounts, retirement accounts all together?
S8 (34:29):
Oh, probably around 100,000.
S1 (34:32):
Okay. Yeah. You know, I think the challenge is that
these policies are so expensive and there's no guarantee that,
in fact, most of them increase regularly. And a lot
of people that have bought them years ago are having
to drop them because they've seen dramatic premium increases for
the long term care insurance, and they just can't afford
(34:53):
them anymore. And I think in your situation, you know,
with 100,000 in assets, uh, you know, you're going to
need to probably, you know, because if you need full
nursing care, that could run you $100,000 easy. And you know,
I think the premium on that long term care insurance
policy is going to be really cost prohibitive. Um, and
(35:15):
so as a result, I would probably just plan to,
you know, keep what you've got invested. And if you
ever needed it, you would just go to a medicaid
approved facility. I mean, you could look into it, but
you'd need to have, you know, five, six, $700 a
month to put toward a policy like this.
S8 (35:32):
Oh, no. No, that. Yeah, that's I didn't realize it
was that wild. Okay, well, thank you so much for
your help. This is, um, you know, I'm encouraged, very encouraged.
So I'm going to start stuffing money aside and, um,
get me a house here shortly.
S1 (35:50):
All right. Thank you. Cindy. Lord bless you. We appreciate
you being on the program. Uh, Bloomington, Illinois. Maggie. Go ahead.
S9 (35:57):
Hey, Rob, thank you so much for taking my call. Um,
we have a question. We inherited some money from a
family member and the trust took out the first RMD,
and we understand we have ten years to spend the
rest of it. Are we able to do that? Qualified
(36:18):
charitable gift or are we not able to do that
because we're not 70 years old?
S1 (36:23):
Yeah you do. The qualified charitable distribution is only available
for somebody who's at least 70.5, regardless of whether these
are inherited IRA funds. Um, so it would not be
available until you get to that point. So as you
pull it out and you're right, you've got that ten
year window as a non-spouse, it is going to be
(36:45):
recognized as income, and it's generally why you want to
do it, you know, a little bit each year. So
you don't create, you know, a massive tax liability in higher, um,
you know, tax brackets in that final year.
S9 (37:02):
Even though in that final year we'll probably be retired
and be in a lower tax bracket.
S1 (37:07):
Yeah. I mean, it's a good question that the unknown
is I mean, how far off is that? Is this
nine plus years away?
S9 (37:14):
Um, no, it's probably closer to five or even less.
S1 (37:17):
Okay. Yeah. I mean, the challenge is we don't know
what the tax structure will look like. I mean, we've
we've made these tax cuts permanent so long as another
administration and Congress doesn't undo that. So, um, you're right.
I mean, it would be worth looking at with a
CPA and doing some planning to say, okay, if the
(37:38):
tax brackets remain the same and we just play out
what you expect your income to be each year, the
CPA or accountant could run some estimates on kind of
what that most effective strategy is. But I think just
given the some of the unknowns, you may be better
off at least taking a portion of it between now
(37:59):
and year ten. Um, if you wanted to wait. Because
to your point, your income is going to fall pretty dramatically.
It may work out and allow you to keep it
in a tax deferred environment and continue to grow it
for the next 5 or 6 years, but you're going
to want to get more conservative as you approach that
ten year mark anyway. Um, because you have to take
(38:19):
it out and then, you know, pay the tax on it.
S9 (38:23):
Okay. Thank you. So I hear you saying we're not, um,
able until age 70 to do the charitable. And then
we just need to work with an accountant to determine
when would be the right time to take more than
the required minimum.
S1 (38:37):
Yeah. That's right. And if any. And to your point,
because you'd be entering retirement at that point, the CPA
may say you're free to leave it there for the
full five plus years, whenever that ten year mark comes. Uh,
but that would come out of the planning. So I
think that's wise. And yes, the QCD, you do have
to be 70.5 regardless of this being inherited.
S9 (39:01):
Thank you so much for clarifying.
S1 (39:03):
Okay, we appreciate your call. God bless you. Let's finish
up today in Austin, Texas. Paul go ahead.
S10 (39:10):
Yes. Good afternoon Rob. May God continue to bless your ministry.
S1 (39:14):
Thank you very much.
S10 (39:16):
I'm, uh I'm 65, and I continue I'm going to
continue to work, Lord willing, as long as I can. Uh,
I've got approximately 20,000 in savings, and I want to
see what you would recommend to grow that towards retirement.
S1 (39:31):
Yeah. So, uh, and I appreciate, uh, what your kind
remarks about the program. Uh, so the 20,000, um, is
that the extent of your savings, or do you have other, uh,
you know, buckets of money in addition to that?
S10 (39:47):
That's pretty much it.
S1 (39:48):
Okay. And what are you spending on a monthly basis typically?
S10 (39:53):
Uh, let's see to. I would estimate probably about. Probably
about four okay. 4000.
S1 (40:05):
Yeah. So I mean I would really love for you
to have six months worth of expenses, which that 20,000
is not quite that. So I would say as much
as I want agree with you, it'd be great to
get something into a retirement account that could be growing
for the future. You know, I just wouldn't want you
to get that invested. And then all of a sudden
you need it for something unexpected. And so I would
(40:29):
kind of call this your emergency fund, almost a fully
funded emergency fund, and move it into a high yield
savings account or a money market account and try to
get as much yield as you can where it's stable,
it's liquid, but it, you know, is going to give you,
you know, a decent rate of return. And then I
would say beyond that, whatever you can carve out each month, uh,
(40:53):
you know, beyond your living expenses. And maybe it's time
to relook at the budget and just see what you
can do to cut back. So you've got more margin
on a monthly basis. That's what I would be looking
to systematically invest into a retirement account. And I'd probably do, um,
you know, it really depends on whether you'd benefit more
from the current deduction now. And if so, I'd use
(41:15):
a traditional IRA. And if not, if you're, you're, you know,
you're not, uh, in the higher brackets and you want
to go ahead and put it in a Roth IRA,
I think that would be fine, too. Uh, what is
your age?
S10 (41:29):
65.
S1 (41:30):
Okay. Yeah. So you have the ability to do the, uh,
the catch up, um, for, uh, you know, if you're
over 50 years old. So that would allow you to
put away, uh, a full $8,000 for 2025, which you
can do all the way up until you file your
2025 return early next year. And then you could immediately
(41:53):
start funding 2026.
S10 (41:56):
Okay. So you recommend a traditional IRA or a money market?
S1 (42:02):
Well, I would use the money market or a high
yield savings for the 20,000 and leave that there. I
would not invest that because we're going to consider that
your emergency fund. And then I would put new contributions
over in that traditional IRA starting right now if you can,
if you have a little bit left over at the
end of the month and just fund that systematically every month,
(42:25):
you'll be able to do up to 8000 for this year.
And then next year you can put in a total
of 8600 being somebody who's over 50 years old.
S10 (42:36):
All right.
S1 (42:37):
Thank you. Thanks for your call. Yep. Lord bless you.
Big thanks to my team today. Taylor, Tahira, Omar and
everybody here at Faith by Faith and Finance Live is
a partnership between Moody Radio and Faith five. We'll see
you tomorrow.
Giving Tuesday is a wonderful reminder of how God calls
us to live generously. But what if this day could
also inspire a lifestyle of intentional giving all year long? Hi,
I'm Rob West. Today we'll talk about how to approach
generosity with both heart and wisdom. So our giving reflects
God's purposes, not just the moment. Al Mueller joins the
(00:29):
show today to share how to give with impact, evaluate
ministries well, and experience the joy of stewardship. And then
it's on to your calls at 800 525 7000. That's
800 525 7000. This is faith and finance. Live. Biblical
wisdom for your financial decisions. Joining us today is Al Mueller,
(00:53):
founder and CEO of Excellence in Giving and a former
executive with Morgan Stanley and UBS. Yes, al. Great to
have you back with us.
S2 (01:01):
A pleasure to be here with you, Rob.
S1 (01:03):
Al, let's start here. What does Giving Tuesday mean to you,
and how can believers approach it with a heart of stewardship,
rather than simply giving on impulse?
S2 (01:12):
Well, Giving Tuesday is a great opportunity to begin acting
on generosity, but it's also a moment to pause and
align with God's purposes. Stewardship asks not just what we give,
but why and where. Uh, second Corinthians nine seven reminds
us that each one must give, as he's decided in
his heart, not reluctantly or under compulsion. For God loves
(01:34):
a cheerful giver, and it's a chance to be intentional.
We can link our gifts to ministries that are both
high impact and faithful, and we get a chance to
be prayerful and strategic. And generosity then becomes part of
our worship. So it's less about a single day and
more about cultivating a lifestyle of generosity.
S1 (01:52):
Yeah, thanks for that distinction giving. That's not only spontaneous,
but also intentional. So let's then get practical for a minute.
What does that look like in practice?
S2 (02:02):
Well, I think God gave us both a head and
a heart. He didn't say pick one. So we need
to look at the different opportunities with both the head
and the heart and say, well, what sort of kingdom
outcomes do I want to see? And stewardship is really
about impact. God is a God of measurement, and he
loves seeing the fruit of transformed lives. And so should we.
(02:23):
So Giving Tuesday can be that starting point for the
year long posture of generosity. And we want to encourage
sort of a both end approach to giving not an
either or approach. And some will be planned and some
will be spontaneous.
S1 (02:36):
Yeah I love that. Head and heart. Now, al, you
lead Excellence in Giving, which equips families and foundations to
give wisely. So let's talk about how your team helps
donors bring greater excellence and purpose to their generosity.
S2 (02:51):
We're essentially serving these families as a foundation staff would,
and we want them to have more information so they
can give more effectively. We provide research, due diligence and
accountability for the ministries that they fund. And our goal
is to have clients go from being a reactive giver
to more proactive givers. They want to be, uh, the
(03:13):
spirit led, but they also want to engage with facts
and information. And ultimately, our mission would be to help
the clients experience the joy of generosity. And they get
that by making high impact gifts and get, uh, really
high quality reports back that they can use to celebrate.
S1 (03:32):
I know you and your team are world class in
what you do. We're going to share some ideas today
that will be helpful for anybody. But who is your
typical giver client? What do they look like in terms
of a profile?
S2 (03:43):
Our clients are in what we would probably consider ultra
high capacity. They have the ability and desire to give
away $1 million or more each year, and out of
a source of income or or sale of assets, and
they have a huge variety of things that they want
to support both domestically and internationally. And the main common
denominator they want to give to things that work.
S1 (04:06):
Yeah. Well, and obviously you do that with great care.
And as you said, you provide really exciting reports for
them to celebrate. It's all around intentionality, but you don't
have to give at that level to give intentionally, do you, al?
S2 (04:19):
Not at all. Not at all. Everyone you know can
do their own homework. Um, there's a lot of reasons
why that there's a lot of resources to look at
different ministries, how they perform. You want to ask certain
questions and and everyone should do their own homework. I mean,
I think that, you know, as a former person served
on Wall Street, served a lot of very high net
(04:41):
worth families and organizations. I, I would I would have
probably been fired if I told them I was getting
my information by things that just came to me in
the mail. Right. You have you have to do your
homework and, everyone can do some homework.
S1 (04:54):
Yeah, that's exactly right. Well, we're going to continue to
talk about giving wisely and intentionally just around the corner
with Al Mueller. We'll talk about how do you evaluate ministries.
We'll talk about some red flags that might make you
think twice before giving. We'll also talk about something called
collaborative giving. Al Mueller is with us today. He's the
founder and CEO of Excellence in Giving. And a lot
(05:17):
more to come just around the corner. Stay with us.
It's Giving Tuesday and we're talking about giving wisely and
(05:37):
intentionally to help us do that. Today is my good
friend Al Mueller, founder and CEO of Excellence in Giving.
They come alongside high capacity givers to make sure they're
giving strategically and intentionally with some incredible due diligence and
reporting after the gifts so they can see the real impact.
And al, even though you all serve high capacity givers,
(06:00):
you know, the principles and ideas we're talking about today
really apply at any level of giving. It's really just
about being strategic and intentional. And one piece of that
is evaluating ministries. So what key things should listeners consider
when deciding where to give?
S2 (06:16):
I think the starting point would be to ask the
ministries what problem they're trying to solve and what they
think the root cause of that problem is, and what
their results have been when they've tried to solve that problem.
We should look for fruit and measurable outcomes that would
demonstrate most cases life change. And we would want to
(06:38):
review their leadership stability, their donor retention, their staff turnovers.
And ministries will provide honest, timely reporting that helps you
build transparency and accountability. They, the ministries, really should communicate
clearly how the gifts are being used and a strong
ministry will welcome that. They'll welcome your questions, and they'll
(07:01):
want to see accountability as part of their discipleship and
part of their stewardship.
S1 (07:05):
Yeah, that's really helpful. And on the other side, what
are some red flags that might make you think twice
before giving?
S2 (07:12):
Well, I think that the vagueness or vision without a
plan sometimes refer to that as a ministry hallucination. They
it would be similar to someone walking in and saying,
I'd like money to build a house, but I but
I don't have any blueprints or any plans or any
cost estimates. I think you'd be pretty reluctant to start
having someone build your home without blueprints or plans or
(07:34):
cost estimates, but I think a ministry that has an
overemphasis on emotion or urgency, and instead of results, they
sometimes will lack reporting or they're unwilling to share outcomes.
Sometimes they'll overspiritualize it and say, you really can't measure
what God does. And there's also a concern sometimes that
there'll be an overdependence on a single donor. Um, and
(07:58):
that there's a constant appeal for, for more money usually
indicates that they're in financial trouble.
S1 (08:04):
Al, would you encourage givers to ask what percent of
every dollar gets to the actual cause or issue versus
administrative costs?
S2 (08:12):
I would I think that looking at the how much
ministry comes out on the other side is probably even
more important than how much they're cost to do ministry,
because ministry has different seasons. They might have just hired
a new development director, and that person that him or her,
has not had time to start developing or cultivating relationships.
(08:33):
So they may have some sort of peaks and valleys.
I think you want to look at it over time,
not just any one single year.
S1 (08:39):
Yeah. That's helpful. Now, I know there's a newer trend
in giving around collaborative giving, and I know you really
like that. How does that work in practice? And why
is it so impactful?
S2 (08:50):
Well, I think there is a trend towards that, that
collaborative giving pools are putting like minded donors together for
greater impact. I think that ministries can get larger strategic
grants rather than individual. I would say piecemeal funding. Yeah.
If a ministry tried to get $1 million and they
were trying to go to large Christian foundations or individual donors,
(09:11):
they'd have to ask a lot of different donors if
they can go to one single pool of capital that
has a similar vision and convince them and lay out
their plans and start working together strategically. Then it avoids
duplication and saves the ministry quite a bit of time.
And I think also it's a great model of unity
in the body of Christ for the donors to work
(09:33):
together with a ministry to accomplish something bigger.
S1 (09:36):
Yeah, I love that. How do you strike the right
balance between trust and accountability? Because I know some donors
are concerned about crossing the line into micromanagement, and nobody
likes that.
S2 (09:47):
No, I think it goes back a little bit to
the our president, Ronald Reagan, who said trust but verify.
And I think the idea of accountability isn't necessarily a
request for control. It's really a request for clarity and information.
And I think that donors would like to understand the
(10:07):
executable plans and measure results and that, you know, healthy
relationships are information given and not not control driven. I've
encouraged some industry leaders to think about reporting and change
the word to blessing. I think almost every ministry leader
would like to bless his donors. And I think good reporting,
good information is really a key way to bless the donors.
S1 (10:31):
I love that idea. Now let's turn our attention to
the next generation. There's a lot of studies that are
have recently been completed or are underway right now. Just
looking at this next generation of givers, What are you
seeing in terms of trends around how younger givers are
approaching generosity differently than their parents?
S2 (10:50):
Well, this generation is definitely more international than their parents.
They understand things going on around the world almost in
real time. They are much more results oriented. They want
to see what happens before the gift and then after
the gift. They're experiential. They want to do site visits.
They want to have direct engagement. They give from conviction,
(11:11):
not just obligation. And it's exciting to see the young
donors develop their own version of their financial discipleship and stewardship.
They have a passion for transparency and impact, and I
think they're going to reshape the the future of Christian philanthropy.
S1 (11:26):
Yeah. What about just the actual dollars given? Is there
any indication that we're going to see an uptick in
giving as this new generation begins to be the drivers?
S2 (11:36):
I don't know if it might be a little too
early to tell on that, Rob. I think that they
are more willing to give up. I don't know what
the dollars will look like. I think there's going to
be a big wealth transfer from parents to the children.
And I would hope that a lot of that transfer
will be come in the form of philanthropic capital, or
at least capital that could be used for kingdom purposes.
(11:59):
So I think they'll they'll be inheritors that will have
an opportunity to do that, put significant dollars to work.
S1 (12:06):
Well, I love that they want to attach meaning to money,
and I think that is going to result in some
significant giving. But I think the trends you've highlighted here
are really significant. Al, you've said that there's an important
distinction between being generous and being a steward. Unpack that
for us.
S2 (12:22):
Well, the stewardship I mean, if you went back to
the first century, the steward was someone who was in
charge of the family, the finances and the fields. And
they were they were very carefully selected. I mean, if
a noble person was going to hire somebody to be
a steward, there was a lot of responsibility that went
along with that. And the steward had to know what
was in the heart and mind of the master and
(12:43):
execute accordingly. So I think a steward is someone who
has to do their homework, and they have to give
with discernment. And I think that's just a higher calling
than someone who is generous. I think the steward has
to know the master and what the master wants done.
And if we believe that all the resources we have
in our control are really ultimately the belong to the master,
(13:06):
belong to the Lord, then we have to find out
from the Lord what he wants done with his resources.
And that will be the the goal or the finish
line for us to hear that. Well done, good and
faithful servant.
S1 (13:17):
I love that. Now we're just about out of time.
Where can folks go to learn more about excellence in giving?
S2 (13:22):
Our website is W-w-w Excellence in Giving. Com and we
have lots of examples and research summaries. And we also
have a monthly e-newsletter that comes out and has a
lot of interesting topics and philanthropy. We'll be happy to
see some snapshots of the ministries. Some stories of the
way our clients have given us some results from those gifts.
(13:44):
And it'll be a great opportunity to to start a discussion.
So excellence in giving would be where you'll find most
of our material.
S1 (13:53):
Al, thanks for joining us today. It's been a pleasure.
S2 (13:56):
Thank you Rob. Enjoyed it.
S1 (13:57):
That's Al Mueller, founder and CEO of Excellence in Giving.
By the way, speaking of giving, if you'd like to
partner with us here at Faith fi, you can consider
becoming a faith fi partner when you go to faith partner.
All right. Your calls are next. The number 800 525 7000.
That's 800 525 7000. I'm Rob West, and this is
(14:19):
Faith and finance. We'll be right back.
S3 (14:32):
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 (14:56):
Well, it's Giving Tuesday. We're glad you're along with us today.
Great to have my friend Al Mueller today. I know
you've taken some thoughts and ideas away about how you
can give wisely and strategically, and I love today that
we turn the corner from Black Friday and Cyber Monday,
and where the focus is all about consumerism. And we
move toward thinking about how do we give, how do
(15:18):
we bless others, how do we hold what God has
entrusted to us loosely and give as an overflow of
the grace extended to us? Out of gratitude to God
for what he has done on our behalf through the
shed blood of Jesus. And we give as unto the Lord.
We give to meet needs. We give to participate in
God's activities. Hopefully today give you a few things to
(15:40):
think about in terms of giving wisely. Now, if you're
looking for somewhere to give, you're looking for the ministry
on the heart of God. Uh, there's all kinds of
things you can see in Scripture around that. But in
terms of the practical tools, uh, one of the tools
to consider as you do your giving, uh, during this
giving season is a donor advised fund, uh, the National
(16:04):
Christian Foundation, our friends call it a giving fund, but
you can open one quickly and easily. It will allow
you to give not only cash directly into the fund.
That becomes a charitable checking account of sorts, but also
appreciated assets. And that's key, because when you give them
away before they're sold, you don't pay the capital gain.
(16:24):
That means for an asset, either in full or in
part that you want to give away anyway, you might
as well give it to a donor advised fund, then
sell it. that funds the donor advised fund, and then
you can grant it out with the click of a
button at your leisure. You can decide and wait and
pray and think about where you want to give it.
And then over time, whether that's days, weeks, months or
(16:46):
even over a couple of years, you could give it
away as the Lord leads. We recommend the National Christian
Foundation to open a donor advised fund if you head
to faith. That's faith. I don't know. Excuse me. Faith.
I know that's where you want to go. That will
(17:06):
help you open that donor advised fund quickly. It'll take
you less than five minutes, and you will find that
it's quickly becomes one of your favorite giving tools. Well,
we're going to be taking your calls and questions today.
We've got some lines open. So if you have a
question call right now 800 525 7000. Again that's 800
525 7000. Let's dive in. We're going to begin in
(17:29):
Pennsylvania today. Steve go ahead.
S4 (17:32):
Hi, Rob. Thank you for taking my call. I'm a
longtime listener. I used to listen back when Larry Burkett
started the show. So, um.
S1 (17:42):
Cool.
S4 (17:43):
Really, really loved his advice. And I love your godly wisdom, too.
S1 (17:48):
Um, well, thank you. I appreciate you mentioning Larry Burkett.
S4 (17:52):
Absolutely. Um, so my question is, uh, I have an
emergency fund, uh, set up, and I've had it in
a savings account, had it there for a little while,
wasn't collecting much interest. Tried a CD for a couple months.
Same thing. Um, not able to get to it, you know,
(18:13):
it had to be matured and whatnot. Just wanted to
know what your thoughts were on putting, uh, the emerging
my emergency fund into a money market. Mutual fund?
S1 (18:28):
Hmm. Yeah. Yeah. The only downside is the the money
market mutual fund. While it pays a higher rate of
interest typically than a traditional savings account, it's not FDIC insured,
so the value can technically fluctuate slightly, although it's extremely
rare and withdrawals can take a day or two. It's
(18:50):
not instant like the bank, so while very safe, doesn't
have the guarantee of a bank account. So for some folks,
that's a that's a deal killer. For others, they say, no,
it's such a, you know, a modest amount of additional risk.
I would rather, you know, get that higher yield. That
really is my primary objective. And I think if that's
(19:12):
the case, then I would say, yeah, you know, the
fidelity government money market or the Schwab Value Advantage money
market or even a, a Vanguard federal money market fund,
those can be great. Give you a little bit more yield.
You just need to understand that you you don't have
that FDIC insurance. Um, and you don't have immediate access
(19:33):
to the money like you do with a bank product?
S4 (19:38):
I see. Okay. All right. Um, yeah. My risk aversion.
I'm okay with the FDIC. Um, but if I needed
it right away. You're saying it would be a day
or two?
S1 (19:55):
Typically, yeah. Because you've got to wait for the, uh,
the transaction to settle and and clear, and then, you know,
you could take a withdrawal at that point. So it's
just not immediate like it would be with a savings account. Uh,
you know, in terms of the funds, um, you know,
having a problem, they call it breaking the buck. Because
basically what happens is the idea behind a money market
(20:17):
fund is it always is priced at a dollar per share. Uh,
it's only happened once that I can think of. You know,
there was one, uh, in 2008, where it fell to $0.97.
You know, after Lehman Brothers, um, you know, they held
Lehman Brothers commercial paper during the financial crisis and that,
(20:39):
you know, event shook the industry and it triggered some reforms.
Since then, they've made, uh, funds much safer. The SEC
has strengthened the rules around higher credit quality, more liquidity.
But the bottom line is it can happen and it
has happened. And so you just need to understand that.
But again, I would underscore the idea that it's extremely rare.
S4 (21:02):
Okay. Okay. Well thank you very much. And, uh, God
bless you.
S1 (21:08):
All right. Thank you as well. We appreciate you, Steve,
and thanks for mentioning, uh, the late Larry Briquet. I, uh,
walk in the shoes of some giants. Uh, Larry Briquet originally,
then Howard Dayton, one of my mentors, uh, hosted the program.
After Larry passed away in 2003. Uh, Howard, uh, passed
it on to me, uh, in 2017. And we have
(21:30):
an amazing team. Boy, what a privilege to come alongside
you listeners each day to encourage you out of God's
Word in your role as a steward, to give you
some practical advice. And we'll continue to do that right
after the break. So if you have a financial question,
now's a great time to call. The number is 800
525 7000. That's 800 525 7000. Stick around. Well it's
(22:02):
a giving Tuesday here on faith and finance. We're so
glad you're along with us today. We've got, uh, looks
like one line open 800 525 7000. Speaking of giving.
Giving Tuesday. Uh, faith and finances. Listener supported. This is
a big month for us as we head toward year
end trying to close the gap. We've had a two
month goal of 5000 to finish out our listener support
(22:26):
for the year, and we're making some great progress. We're
incredibly thankful for so many of you who have already responded.
We've already seen, just over this first month of this
two month period, a little more than $80,000 in giving
come in, which means we're about 95,000 away from our goal.
We've got about 30 days to do it. So if
(22:47):
you love the program, maybe you've taken something away that's
been helpful for you, or you've just been encouraged by
the biblical wisdom and counsel, we'd love to invite you
to support the ministry here. At year end, every gift
is doubled because of some generous friends up to $175,000.
And with every gift of any amount, we'll be able
to send you a copy as a thank you of
(23:09):
our new devotional, Our Ultimate Treasure, that comes out right
after the first of the year. Just head to faith.
Com that's faith. Com slash give. All right, let's head
back to the phones. Tennessee. Sharon. How can I help?
S5 (23:24):
Yes. Good afternoon. Rob. My son was looking to buy
a home. Are you there?
S6 (23:31):
Yes, ma'am. Hello.
S5 (23:32):
Oh. I'm sorry. Um, my son was looking to buy
a home, and he found a place. But it isn't
eligible for a mortgage because of the condition of the home.
So the owners have offered to let him do a
rent to own contract where he works on the house
and gets it to a condition that he could then
(23:53):
hopefully get a mortgage on it. My concern is what
are the pitfalls of that and how can he, if
he's in a contract to rent to own, will he
still be able to get a mortgage or other restrictions
on that? Because he's going to be putting a lot
of work because the House is in, you know, in
a lot of disrepair. There's a lot of work during
(24:13):
this time.
S6 (24:14):
Yeah.
S1 (24:15):
Well, this situation has a lot of red flags, there's
no doubt about it. And so your son does need
to proceed with caution. Rent to own can work, but
only if the contract protects him. So right now the
risk is on him and the benefit is on the seller. Uh, so,
first of all, can he get a mortgage later if
he signs a rent to own contract now? Yes. For sure. Uh,
(24:39):
you know, being in a rent to own agreement doesn't
prevent him from getting a mortgage later. The lenders don't
really care about the lease itself, but he won't be
able to get a mortgage on a home unless the
property is legally his or the contract gives him the
legal right to purchase. He also can't get a mortgage
if the house isn't livable or has people still occupying.
(25:00):
It has to be safe. It has to be lender approved.
It has to be vacant. It's got to meet the
FHA and conventional guidelines. So it's going to have to
be repaired before the lender will issue the loan, which
means the contract has to protect him if he does
repairs up front. Uh, second, I would say, you know,
(25:21):
the the dangers signs are he's doing repairs on a
home he doesn't own. So if the seller changes their
mind or sells it to someone else, your son could
potentially lose everything he's put in. Um, you know, and
at the end of the day, um, if the house
never becomes livable enough for a mortgage, he may be,
(25:45):
you know, stuck in this situation, continuing to rent without
the ability to get a mortgage on the home because
it's going to have to meet that condition, being being
put on it by, by the lender. Um, I would
also say, you know, if the seller has debt or
liens or any kind of legal problems, your son's investment
(26:06):
of the repairs could disappear as well. And so that's, uh, that's,
you know, really challenging. So I would think, you know,
the way to do this, which again, it certainly has risk,
but he wouldn't want to sign anything without a real
estate attorney reviewing it. And make sure that the purchase
option has a clear price and timeline, and what counts
(26:28):
as livable condition and a locked in price that can't
be changed later. And it probably needs a clause giving
him credit for repairs. So, you know, every dollar he
invests in renovation should be counted as either rent credit
or maybe a purchase price credit. And then there needs
(26:48):
to be a refund clause because if the seller backs out,
he needs to be reimbursed for the repair costs. Does
that all make sense?
S5 (26:58):
It does. Um, so he needs what the best way
to do that was to have a real estate attorney
look over a contract, because they're going to go to
an attorney, but it's her attorney and do a contract. And, um,
I just want to make sure that he's protected. I
don't want him to put all that work into it,
you know, and then maybe couldn't get a mortgage. And
(27:18):
what if they're, you know, maybe there's something they can
in that, you know, agreement. That's my big concern. But
so a real estate attorney and make sure that in
this contract they have a price and a timeline, a
locked in price credit for repairs. I was trying to
make notes really fast.
S6 (27:36):
Yeah.
S1 (27:37):
And then, you know, I think also that the proof
that the seller actually owns the home free and clear
would be important. Um, you know, and yeah, so, I mean,
those are the big things that I would want in there.
And then a refund clause, which, you know, if the
seller backs out, he gets reimbursed for the repair costs.
I would also say he really needs his own real
(27:59):
estate attorney that is paid by him. That can represent
his interest. So whatever rent to own agreement is created
by the seller's attorney should be reviewed by an attorney
that he retains, and it's not going to take a
whole lot of time. It time. It shouldn't be terribly expensive,
but I. I want somebody who's, you know, obligated to
(28:19):
him to protect his interests in this.
S5 (28:23):
Yeah, that's what I want. That's exactly what I want.
I don't want to see him put all this into this.
And then something happened. And it's just because he wasn't aware. He,
you know, because he thought maybe he was safe. Because
they sat in front of attorney.
S6 (28:35):
Yeah, exactly.
S1 (28:38):
So I think you're on the right track here. And
it shouldn't be hard to find a real estate attorney
that he could engage for the purpose of just reviewing
the contract and, you know, redlining the agreement to say, no,
we need to change this, or we need to add
that and and make sure that his interests are protected. But, Sharon,
I appreciate your call today. Thanks for being on the program.
Lord bless you. Uh, 800 525 7000 is the number
(29:00):
to call. Let's go to, uh, Chicago. Lisa. Go ahead.
S7 (29:04):
Hi, Rob. Thank you for taking my call. Sure. Um,
my husband and I, we're, uh, blended marriage. Uh, we
have adult children, and we're working on our estate planning,
and we were introduced to a trust AB trust for.
Are you familiar with the AB trust?
S6 (29:24):
I am, yes.
S7 (29:25):
Okay. So I'm just wondering, um, what kind of pros
and cons on that and if it's something that might
not benefit either one of us. Um, what would there
be comparable to that, that would, um, kind of have
security in our children getting their inheritance?
S6 (29:45):
Yeah.
S1 (29:46):
Yeah, it's a great question. And I'm not an attorney.
You do need an attorney to kind of help you
walk through the various options here. I mean, essentially the
AB trust, uh, in the most basic terms is the, the,
a part of the trust is the survivor's trust. So
the surviving spouse controls that portion. And the B portion
(30:08):
of the trust is the bypass trust where it's locked
in for the deceased spouse's beneficiaries, often their children. So
the surviving spouse can access income and sometimes principal, but
can't change the beneficiaries. So it protects the kids inheritance
even if remarriage happens and if long term care is
(30:31):
needed or, you know, family dynamics. So that's not the
only way to handle this, but it is certainly a
way to handle it. But you need, I would say,
an estate planning attorney who really specializes in blended families
and asset protection. I hope that helps. Thanks for your
call today. Stay on the line. We'll talk a bit more.
We'll be right back. Great to have you with us
(31:00):
today on Faith and Finance live. I'm Rob West. We're
taking your calls and questions. Let's head right back to
the phones. K.S. Florida. Cindy. Go ahead.
S8 (31:09):
Hi, Rob. Um, I am 68 years old, in fairly
good health. My landlady is 82 and she just recently
started declining. She has two children that live out of state.
Don't want the house that I would come with. You know,
I live in. There's a separate two houses on her
property and I'm in one of them. And so my
(31:33):
son said, well, maybe you should take some of your money.
And I know this sounds awful, and I'm not bragging. Please.
I got plenty of money. Um, I don't have any
bills except for that. You know, that rent and, um,
I've provided for my kids, you know, and grands and
all that stuff, but he said you need to start
looking out for yourself. And if she dies, you don't
(31:55):
have a guarantee. It's not written in her contract that
I have a place to live. And he's suggesting that
I buy my own house. Am I too old for that?
S1 (32:06):
You know, uh, it really comes down to, I think,
preparing for housing stability in retirement, not necessarily trying to
guess what your landlord might do in the future. So,
you know, at 68, a housing security, security is is
an important financial consideration. And so I wouldn't be able
(32:28):
you know, I wouldn't assume that you'll automatically be able
to buy her home. Um, you know, even if it
she wants to sell it to you, the home may
go to heirs, or they may want to sell it
on the open market. Um, the house could be sold
quickly to investors. I mean, there's a number of things
that could play out here. So I wouldn't count on that.
(32:49):
I would say, you know. Yes, you should start saving now.
And I would say, um, you know, think about the
future down payment and the moving costs and so forth. Um, and,
you know, should you invest the money instead? I think,
you know, as long as you have enough set aside
to buy that home. Whenever you decide it's time, you
(33:11):
know to move on. And and if that time comes
and buy something of your own, I wouldn't want to
have all that money locked up in the market where,
let's say, two years from now, there's a recession and
the market's down 20 or 30%, and you're having to
sell it at a loss. I want I would want
to make sure that we carved out maybe bucket one,
which is your housing fund, where you've got enough for
(33:34):
the down payment and the moving expenses in the first month,
and the deposit and a cushion. And then bucket two
becomes your long term investments, uh, beyond the housing cushion, where,
you know, you don't have to have to be concerned
about pulling that money out prematurely. Does that make sense?
S8 (33:53):
It does. It does. So should I also be putting
and I heard you talk about this on the show before.
Insurance for an old folks home. A nursing home, um,
you know, is that a wise investment again at 68? And,
you know, we're not promise our health or our.
S1 (34:12):
Right. Sure. Uh, what are your. If you don't mind
me asking, what are your total investable assets?
S8 (34:20):
You mean, how much do I get a month?
S1 (34:22):
No. How much do you have in in, uh, on
your balance sheet. So investment accounts, retirement accounts all together?
S8 (34:29):
Oh, probably around 100,000.
S1 (34:32):
Okay. Yeah. You know, I think the challenge is that
these policies are so expensive and there's no guarantee that,
in fact, most of them increase regularly. And a lot
of people that have bought them years ago are having
to drop them because they've seen dramatic premium increases for
the long term care insurance, and they just can't afford
(34:53):
them anymore. And I think in your situation, you know,
with 100,000 in assets, uh, you know, you're going to
need to probably, you know, because if you need full
nursing care, that could run you $100,000 easy. And you know,
I think the premium on that long term care insurance
policy is going to be really cost prohibitive. Um, and
(35:15):
so as a result, I would probably just plan to,
you know, keep what you've got invested. And if you
ever needed it, you would just go to a medicaid
approved facility. I mean, you could look into it, but
you'd need to have, you know, five, six, $700 a
month to put toward a policy like this.
S8 (35:32):
Oh, no. No, that. Yeah, that's I didn't realize it
was that wild. Okay, well, thank you so much for
your help. This is, um, you know, I'm encouraged, very encouraged.
So I'm going to start stuffing money aside and, um,
get me a house here shortly.
S1 (35:50):
All right. Thank you. Cindy. Lord bless you. We appreciate
you being on the program. Uh, Bloomington, Illinois. Maggie. Go ahead.
S9 (35:57):
Hey, Rob, thank you so much for taking my call. Um,
we have a question. We inherited some money from a
family member and the trust took out the first RMD,
and we understand we have ten years to spend the
rest of it. Are we able to do that? Qualified
(36:18):
charitable gift or are we not able to do that
because we're not 70 years old?
S1 (36:23):
Yeah you do. The qualified charitable distribution is only available
for somebody who's at least 70.5, regardless of whether these
are inherited IRA funds. Um, so it would not be
available until you get to that point. So as you
pull it out and you're right, you've got that ten
year window as a non-spouse, it is going to be
(36:45):
recognized as income, and it's generally why you want to
do it, you know, a little bit each year. So
you don't create, you know, a massive tax liability in higher, um,
you know, tax brackets in that final year.
S9 (37:02):
Even though in that final year we'll probably be retired
and be in a lower tax bracket.
S1 (37:07):
Yeah. I mean, it's a good question that the unknown
is I mean, how far off is that? Is this
nine plus years away?
S9 (37:14):
Um, no, it's probably closer to five or even less.
S1 (37:17):
Okay. Yeah. I mean, the challenge is we don't know
what the tax structure will look like. I mean, we've
we've made these tax cuts permanent so long as another
administration and Congress doesn't undo that. So, um, you're right.
I mean, it would be worth looking at with a
CPA and doing some planning to say, okay, if the
(37:38):
tax brackets remain the same and we just play out
what you expect your income to be each year, the
CPA or accountant could run some estimates on kind of
what that most effective strategy is. But I think just
given the some of the unknowns, you may be better
off at least taking a portion of it between now
(37:59):
and year ten. Um, if you wanted to wait. Because
to your point, your income is going to fall pretty dramatically.
It may work out and allow you to keep it
in a tax deferred environment and continue to grow it
for the next 5 or 6 years, but you're going
to want to get more conservative as you approach that
ten year mark anyway. Um, because you have to take
(38:19):
it out and then, you know, pay the tax on it.
S9 (38:23):
Okay. Thank you. So I hear you saying we're not, um,
able until age 70 to do the charitable. And then
we just need to work with an accountant to determine
when would be the right time to take more than
the required minimum.
S1 (38:37):
Yeah. That's right. And if any. And to your point,
because you'd be entering retirement at that point, the CPA
may say you're free to leave it there for the
full five plus years, whenever that ten year mark comes. Uh,
but that would come out of the planning. So I
think that's wise. And yes, the QCD, you do have
to be 70.5 regardless of this being inherited.
S9 (39:01):
Thank you so much for clarifying.
S1 (39:03):
Okay, we appreciate your call. God bless you. Let's finish
up today in Austin, Texas. Paul go ahead.
S10 (39:10):
Yes. Good afternoon Rob. May God continue to bless your ministry.
S1 (39:14):
Thank you very much.
S10 (39:16):
I'm, uh I'm 65, and I continue I'm going to
continue to work, Lord willing, as long as I can. Uh,
I've got approximately 20,000 in savings, and I want to
see what you would recommend to grow that towards retirement.
S1 (39:31):
Yeah. So, uh, and I appreciate, uh, what your kind
remarks about the program. Uh, so the 20,000, um, is
that the extent of your savings, or do you have other, uh,
you know, buckets of money in addition to that?
S10 (39:47):
That's pretty much it.
S1 (39:48):
Okay. And what are you spending on a monthly basis typically?
S10 (39:53):
Uh, let's see to. I would estimate probably about. Probably
about four okay. 4000.
S1 (40:05):
Yeah. So I mean I would really love for you
to have six months worth of expenses, which that 20,000
is not quite that. So I would say as much
as I want agree with you, it'd be great to
get something into a retirement account that could be growing
for the future. You know, I just wouldn't want you
to get that invested. And then all of a sudden
you need it for something unexpected. And so I would
(40:29):
kind of call this your emergency fund, almost a fully
funded emergency fund, and move it into a high yield
savings account or a money market account and try to
get as much yield as you can where it's stable,
it's liquid, but it, you know, is going to give you,
you know, a decent rate of return. And then I
would say beyond that, whatever you can carve out each month, uh,
(40:53):
you know, beyond your living expenses. And maybe it's time
to relook at the budget and just see what you
can do to cut back. So you've got more margin
on a monthly basis. That's what I would be looking
to systematically invest into a retirement account. And I'd probably do, um,
you know, it really depends on whether you'd benefit more
from the current deduction now. And if so, I'd use
(41:15):
a traditional IRA. And if not, if you're, you're, you know,
you're not, uh, in the higher brackets and you want
to go ahead and put it in a Roth IRA,
I think that would be fine, too. Uh, what is
your age?
S10 (41:29):
65.
S1 (41:30):
Okay. Yeah. So you have the ability to do the, uh,
the catch up, um, for, uh, you know, if you're
over 50 years old. So that would allow you to
put away, uh, a full $8,000 for 2025, which you
can do all the way up until you file your
2025 return early next year. And then you could immediately
(41:53):
start funding 2026.
S10 (41:56):
Okay. So you recommend a traditional IRA or a money market?
S1 (42:02):
Well, I would use the money market or a high
yield savings for the 20,000 and leave that there. I
would not invest that because we're going to consider that
your emergency fund. And then I would put new contributions
over in that traditional IRA starting right now if you can,
if you have a little bit left over at the
end of the month and just fund that systematically every month,
(42:25):
you'll be able to do up to 8000 for this year.
And then next year you can put in a total
of 8600 being somebody who's over 50 years old.
S10 (42:36):
All right.
S1 (42:37):
Thank you. Thanks for your call. Yep. Lord bless you.
Big thanks to my team today. Taylor, Tahira, Omar and
everybody here at Faith by Faith and Finance Live is
a partnership between Moody Radio and Faith five. We'll see
you tomorrow.
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