October 6, 2025 • 42 mins
Health insurance or health cost-sharing—which is the better fit for your family? With open enrollment upon us, it’s the perfect moment to explore your choices. On the next Faith & Finance Live, Rob West and Lauren Gajdek highlight the key differences between health insurance and health cost-sharing. Then, it’s on to your calls. That’s Faith & Finance Live—biblical wisdom for your financial decisions. That’s weekdays at 4pm Eastern/3pm Central on Moody Radio.
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Episode Transcript
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S1 (00:08):
Health insurance or health cost sharing, which is the better
fit for your family? Hi, I'm Rob West. With open
enrollment upon us, it's the perfect moment to explore your choices.
Joining me today is Lauren Guida to highlight the key
differences between health insurance and health cost sharing. And then
we'll take your calls at 800 525 7000. That's 800
(00:31):
525 7000. This is faith and finance. Live biblical wisdom
for your financial decisions. Lauren Jadick is the senior director
of external affairs at Christian Healthcare Ministries, the nation's longest
serving health cost sharing ministry and a longtime proud underwriter
(00:52):
of this program. Lauren, great to have you back with us.
S2 (00:55):
Oh, Rob, always good to be with you on the show.
Thanks for having me.
S1 (00:58):
Lauren. Give us a quick overview of how most traditional
health insurance plans operate.
S2 (01:05):
Sure. Well, as you mentioned in your intro, Rob, we're
coming up on the open enrollment season for health insurance,
which is November 1st through January 15th of 2026. And,
you know, health insurance, most people are familiar with it.
But there's some key characteristics. You know, it's usually that
you have to follow a provider network, you know, choose
(01:28):
providers in a list that's given to you. And, you know,
sometimes there's preauthorization or you have to get a referral
to see a doctor. Um, but on the cost side,
it's generally pretty high because, you know, insurance companies are
out to make a profit, which isn't necessarily a bad thing,
but that can conflict with, you know, patient care sometimes. Um,
(01:50):
and the premiums and deductibles can be quite expensive even
before insurance will even start to cover.
S1 (01:56):
Yeah, that's exactly right. Which really puts the squeeze on
the family budget. So then let's compare that to health
cost sharing. How does that work?
S2 (02:06):
Well, health cost sharing I like to say, is a
way of getting your medical bills taken care of. You know,
the end result is the same in that that happens. Um,
but we operate differently because we don't have provider networks. Uh,
our members can choose their own providers. Uh, you know,
they're not dealing with a big bureaucratic organization. You know,
(02:26):
we're a ministry, a nonprofit, uh, and members what they
do is they send in a monthly what we call
a monthly contribution, and it's a set amount of dollars
every month. We pool those resources and reimburse our members
for their medical bills. We call that sharing.
S1 (02:45):
Mhm. Yeah. And you've been doing it for a long time.
And I know more than $10 billion with a B
has gone out. Uh can you walk us through how
health cost sharing works in a real life situation, what
would it look like for a typical family, and how
exactly do the bills get paid?
S2 (03:02):
Yeah, absolutely. So what you would do, like I said earlier, is,
you know, you go to the healthcare provider of your
choice as long as the treatment falls within the Christian
Healthcare Ministries guidelines, you have a lot of freedom and
flexibility there. Um, and when you get your treatment, you
let them know that you're legally a self-pay patient. And
(03:23):
that actually gives you the opportunity to receive discounted rates.
Sometimes upwards of 40% is what we typically see. And
then c.h.m. Works with your healthcare providers as needed. Um,
you know, you set up a payment plan in the
meantime until CMN reimburses the cost of your care. So
it's very simple. Um, you know, easy to do. And
(03:45):
we're always here to help our members with questions they
have along the way.
S1 (03:48):
Well, and we even have some of our team members
here at Faith fi on the program, and they love it. Now, Lauren,
with open enrollment right around the corner, what should folks
keep in mind as they weigh their options?
S2 (04:00):
Yeah, there are a few different things. You know, we
just got done with the summer travel season. Um, people
might be thinking about vacation for next year, but I
think a lot of people don't realize that their insurance
does not always go with them. If they're getting treated
out of the country or even out of their own state.
It just depends on what kind of plan you have. Um,
with C.h.m. You know, you can take it just about anywhere.
(04:23):
It's very portable, flexible. Um, but also, again, going back
to the cost, that's a major deciding factor for people.
And you really have to think about not just how
much does my monthly premium cost, but how much am
I really paying out of pocket after deductibles and co-insurance
and stuff like that? So C.h.m. Does not have, uh,
(04:43):
co-insurance or copays or anything of the sort. We share 100%
of qualifying medical bills according to our guidelines.
S1 (04:51):
I love it, and it's biblical at its core, it's
a non-profit ministry, not an insurance company. Members pray for
one another and receive prayer support, and your monthly gift
is going directly to help another member in need. Lauren,
we're so honored to be partnered with you, and thanks
for stopping by today.
S2 (05:09):
Thanks so much, Rob. Always glad to be with you.
S1 (05:11):
Folks, check out at resources. That's. Where we'll be right back.
S3 (05:34):
The opinions offered during this program represent the personal or
professional opinions of the participants, given for informational purposes only.
Any information provided is not intended to replace advice from
a financial, medical, legal, or other professional who understands your
specific situation.
S1 (05:58):
So delighted to have you with us today on Faith
in finance live, I'm Rob West. We are looking forward
to taking your calls and questions today. The way to
get in on the conversation is by calling 800 525 7000. Again,
that's 800 525 7000. Whatever you're thinking about in your
financial life today, we would love to tackle it. Now,
(06:20):
before we dive into those calls and check in on
what's making headlines today, let me just take a moment
to say an enormous thank you to so many of
you listening right now who are a part of our
fall share event last week, especially so many of you,
Faith and Finance Live listeners that we heard from last week.
You are incredible, and we are just so grateful for
(06:41):
the way that you just supported the work of Moody Radio.
You were there to give generously and, um, we just
couldn't be any more grateful to partner with you, to
take God's Word to people in your communities and around
the globe. And in part, your support of Moody Radio
supports this program, because our partnership at Faith Fi and
(07:05):
Moody Radio is what brings you this broadcast each day.
So just know how thankful I am for you and
your incredible generosity. And I can't wait for, uh, another
year of incredible ministry together as we serve God's people.
So thank you from the bottom of our hearts. Alright, uh,
we're ready to take your questions today. We're ready to
(07:25):
get back to business and help you live as a
wise and faithful steward. So that number to call today
is 800 525 7000. Let's begin in Pembroke Pines, Florida. W.r.m. Gill,
go right ahead.
S4 (07:39):
Yes. Thank you for taking my call. Yeah, I have
a little over 100,000. I want to invest between the
S&P 500, the Nasdaq and the Dow And I'm not
sure if, uh. Too much risk there. Maybe, maybe if
I can put everything on the S&P 500 to take
less risk. And what what do you take on that?
S1 (07:59):
Yeah. You know, the only challenge with that, Gil, um,
is that you're going to be highly concentrated in, first
of all, all stocks, no bonds. But secondly, the the
three indexes you just mentioned are all comprised of basically
large and mega cap stocks. So the Dow Jones is
(08:19):
the 30, uh, you know, largest companies in the US.
The S&P 500 is the 500 largest companies. And then
the Nasdaq is just littered with mega tech, uh, mega cap,
if you will, meaning very large tech companies. So you're
very highly concentrated in the US and in the large
(08:40):
capitalization companies which have done well, uh, it doesn't mean
they won't continue to do well. It's just that you're
not going to be very well diversified, meaning you're not
going to have any other categorization of companies in there.
You're not going to have mid and small cap companies.
You're not going to have any international exposure. And then
(09:00):
when we move beyond the stocks, uh, you know, you're
not going to have any exposure to bonds and or
precious metals. Uh, I mean gold is up significantly now.
Will it keep going? Nobody knows. But it's a great
way to diversify. So let's back up just for a
moment and talk about how this 100,000 fits alongside the
(09:20):
other investments in assets that you have. Let me start
with your age, if you don't mind me asking.
S4 (09:26):
Uh, 76. Just 76.
S1 (09:29):
Got it. So typically for somebody who's 76, I would say,
you know, you might want to think about 30 to 40%
in stocks. Um, and then put the rest 60 to 70%
in bonds. Now do you have any other investments to
speak of.
S4 (09:48):
Yeah, I have a 170,000 on, uh, on the S&P.
I had them in I had them in the European
market with, with the uh, with the S&P. But the
European market didn't do no good. I didn't make a penny.
I only made, uh, the S&P, I made like 66,000
(10:10):
and change. So that's why I want to get out
of the European America, because I didn't do no good
at all. But I have those in, uh, an annuity
for five years with one year. One year. I got
four more years ago. But what I did, I was
I was able to, uh, change it to everything in
the S&P 500 because the European wasn't doing good and
the S&P 500 did good last year, had a 10%, 10% cap,
(10:34):
which I did good, I did good 10% cap.
S1 (10:38):
So you were in an insurance product. Is it like
an annuity?
S4 (10:42):
Yeah.
S1 (10:43):
Yeah okay. So that's where the cap comes in. But
with the 100,000, you're not looking to put it into
an annuity. You're going to invest it directly.
S4 (10:52):
I was thinking about what was the best thing to
do with us before the 1000.
S1 (10:58):
I'll tell you what I would recommend. Yeah, I think
that's the key is, you know, are you looking at
taking too much risk by putting, you know, 100% of
your investable assets in basically mega cap and large cap
US stocks. And although you're right, the European markets have
not done well, the US has been the place to
(11:18):
invest and we've seen dramatic increases. We're bumping up against
new all time highs every day on most of the
the US indexes. It doesn't mean that's always going to
be the case. In fact, many would argue that despite
the challenges we've got economically, you know, with a slowing
labor market, you know, we've got some inflation that's sticking around. Um,
(11:39):
you know, that on top of these rich valuations, meaning
stocks are priced very high right now that you are
taking a pretty significant amount of risk by putting 100%
of that in stocks, and especially in those specific category
of stocks. And so if the market was down 20
or 30%, the question is at 76, would you be
(12:01):
able to weather that or, you know, would that derail
your financial life in such a way that it would
be problematic? And if so, I would say, let's get
back to a normal diversification approach for you in terms
of asset allocation, where, you know, instead of 100% in stocks,
maybe you think about 30 to 40% in stocks and
(12:21):
put the rest in bonds. Better yet, Gil, I would
probably recommend you connect with an advisor who could look
at the 175 and the 100 and help you put
together a well thought out investment strategy that, you know,
balances risk with an appropriate rate of return. Your income
needs and your tax efficiency and manages the portfolio for you.
(12:46):
The challenge is when you try to do it yourself,
you could end up chasing returns and inadvertently be adding
a whole lot of risk, and then end up paying
the penalty for it. If this market turns down, which
it normally does in cycles, we haven't had one in
quite a while, but that could really hurt you financially.
(13:07):
Does that make sense?
S4 (13:09):
Yeah. Uh, the only thing is I can afford it to, uh,
whether whether you know it for six months or a
year or whatever, I can wait. I can wait till
the market comes down and wait till they come back
up again. Sure, I'm going to do that because, okay,
when I get from retirement, I can pay my bills.
And and plus I got some small investment that I can,
(13:33):
you know, I can move around. But but I like
when I'm listening to you what you talk. So when
you write the story. Tory, the Tory for 30 to 40%
in stock and the other one bonds? Yes. What kind
of bonds are government bonds?
S1 (13:48):
Oh, yeah. Basically, probably largely medium term and short term
government bonds. And then, you know, maybe through a bond
index fund or a managed bond fund. Um, so, you know,
if I were you, Gil, I would connect with a
certified Kingdom advisor there in Pembroke Pines and just have
somebody look over your whole strategy, build you a plan,
(14:11):
and then manage the money with the stocks and bonds,
maybe a little precious metals alongside it. So if I
were you, I'd head to our website, uh, at find
a find a Kdka.com. Thanks for your call. Lord bless you.
We'll be right back.
S5 (14:35):
Great to have you with us today on Faith and
Finance live. I'm Rob West.
S1 (14:38):
We're looking forward to taking your calls and questions here
in this segment. Coming up in our final segment today,
Bob Dole stops by. Bob will check in with us
and preview the markets for the week. Uh, the big
board's mix today. The Dow Jones off just slightly. The
S&P 500 and the Nasdaq at Fresh Records again pushed
(14:59):
up largely by AMD the chip maker. But uh fresh
highs on the S&P 500 and the Nasdaq will get
Bob's take on all of that straight ahead plus the
government shutdown. How might that affect the markets? We'll get
Bob's take on that straight ahead. In the meantime, uh,
Carolyn is in Saint Charles. Carolyn, how can I help?
S6 (15:20):
Yes, thanks. Um, I called before about Qcds, and you
explained them very well, but they still don't make sense
at age 70, which is what I'm able to take. Um,
you lose the interest or any earnings on that money
and you can't deduct it. The contribution to your taxes.
(15:42):
So why would anybody do a QCD at 70?
S1 (15:45):
Yeah, it's a good question. So you're right at 73
when you've got to take the required minimum, it's a
no brainer because you've got to take it out anyway.
So you might as well get it out without paying
the taxes. Here's why you do it at 70. If
you're already giving to a charity, most people do that
out of cash. So you might write a check to
(16:07):
a ministry or your church out of checking or savings.
And so what a lot of people will do is say,
wait a minute. Instead of writing that check out of
checking or savings after tax money, I'm going to give
the same amount from my IRA, and that's going to
allow me to get it out of there without paying
any tax on it, which there's no other way of
(16:29):
doing that. You see, that money went in without any
tax being paid because you got the deduction and then
every other way you get it out, whether it's you
taking it out or your heirs taking it out. When
you pass it down, they're going to add it to
their taxable income or you are. But the QCD offers
the only way to get the money out without it
(16:50):
ever being taxable to anybody. And so this is a
way to essentially take the money out of the IRA
bucket instead of the after tax bucket. Give the same
amount to the charity or the ministry but never pay
any tax on it. Does that make sense?
S6 (17:07):
Yes it does. Yes it does. Then it wouldn't make
sense to take it out of a Roth IRA, would it?
S1 (17:16):
Well, you certainly could. I mean, I think at the
end of the day it comes down to, you know,
if the Lord is leading you to to give generously
to whatever ministry you know, or church you're talking about. Um,
you know, so often we only think of our giving
in terms of the cash. But here's the reality 90%
of our wealth is held in non-cash assets, IRAs and
(17:40):
investments in our home and, you know, other type of
illiquid assets. Only 10% of our wealth is held in
the form of cash. And yet 90% of our giving
happens in the form of cash. So our greatest opportunity
for giving as the Lord leads is on our balance sheet.
And one of those assets sitting on your balance sheet
(18:01):
is your IRA. And so if you wanted to do some,
you know, some significant giving from your balance sheet, now
because you're 70.5 or older, you're able to do that
without having any tax liability added to it. So it's
a powerful giving vehicle, especially if you've over accumulated. I
talked to a lot of people on this program, Carolyn,
(18:23):
I'm not sure if you're in this situation or not,
but they have more than they'll ever need. You know,
they I talked to a lady a few weeks ago.
She said, Rob, I'm going to die at some point
when the Lord calls me home, and I'll probably have
north of $6 million in my trust, why am I
not giving hundreds of thousands of dollars away right now?
And I'll say, yeah, I agree. Why let it sit
(18:45):
there when it can get into the kingdom? And so
this is a way to do that. Um, now to
your question about the wrath. Either one can be great. Again,
the reason why you may want to prioritize the the
traditional IRA over the wrath is it's this unique opportunity
that you have of getting that money out without it
(19:06):
being taxable, which it would be for you or again,
your heirs, if it doesn't come out by way of
a QCD.
S6 (19:15):
Okay. Is there a certain level of tax, you know,
or what income level would it not make sense?
S1 (19:25):
Um, it really makes the it's really not a matter
of an income level. I mean, in, in 2025, you
could give $108,000, up from your IRA as a qualified
charitable distribution. Um, and, and you can even do some
of that into a charitable gift annuity if you wanted to.
(19:47):
But but basically you can do up to 108,000. Um,
and there are no phase outs on that in terms
of your income level. So I like this as a
way of getting that money out of that account and
getting it into kingdom building activities without it adding one
penny to your taxable income, which is a real plus.
S6 (20:09):
Okay. Okay. Thank you.
S1 (20:11):
Okay. All right. You're welcome. Thanks for your call. Lord
bless you. Hey, stay on the line. I'm going to
send you a copy of our magazine, just so you
can read through some of the articles in there. I
think you'll enjoy it. God bless you. Let's go to Lincoln, Nebraska. Pat.
Go ahead.
S7 (20:26):
Hi, Rob. Thanks for taking my call. I just have
a question about retirement. Yeah, I'll be retiring soon and
I'll get a teacher's pension. And then I'm also going
to be receiving Social Security, and I think I can
make $23,000 while I'm on Social Security. And I didn't
(20:46):
know if my teacher's pension would go towards that.
S1 (20:51):
Yeah. Good question. Um, so first of all, you are correct.
There is a limit on the amount that you can earn. Uh,
it's not exactly 23,000 close to it's $22,320. So, uh,
if you take Social Security before full retirement age, um,
(21:12):
and you continue to work for wages or self-employment income,
if you earn over 22,320, Social Security will withhold a
dollar in benefits for every $2 you earn above that
limit until the year that you turn full retirement age.
And then it jumps up. Um, so that's the limit. Now,
you will eventually get all that money back when you
(21:35):
reach full retirement age over a number of years in
the form of a higher check, but it will drop
it down. Now, uh, beyond that, to your second question,
your teacher's pension does not count toward that 22,320. That's
retirement income, not earned income. So hope that helps. Um,
I'll connect with you offline and see if you have
(21:56):
any follow up questions. Stay right there. We'll be right back. Hey,
thanks for joining us today on Faith and Finance Live.
Coming up in our next segment, Bob Dole stops by
fresh new highs in the market today, at least on
the S&P 500 and the Nasdaq the Dow Jones off
(22:19):
just 63 points. We'll get Bob's take on what's moving
the markets, including how this government shutdown, if it lingers,
will affect, uh, the stocks as well. We'll get Bob's
take on that. In the meantime, let's head back to
the phones. Indiana's where Ann is located and go right ahead.
S8 (22:39):
Hey, Rob. Um, I rely on I'm really grateful for
your biblical advice. Grounded in God's word. And that's why
I'm calling in.
S1 (22:48):
Well, I'm so delighted to hear that. Thank you. That's
very kind. How can I help you?
S8 (22:54):
Well, I'm reaching out because we have a new ministry
in our community, and we are probably only about 25% funded.
But we'd really like to get the ministry started biblically. Uh,
how should we handle that? Just as a leadership group
(23:19):
and going forward?
S1 (23:21):
Yeah. Uh, so talk to me about kind of what
are the start up costs course needed. And kind of
where do you stand today?
S8 (23:31):
There is a large portion that's just the start up cost. So, um,
I would say it's probably $6,000 a month that we
actually started up. And that's actually quite small compared to some.
But and then ongoing, we would need probably half of
that $3,000 to continue going, but we've probably only got
(23:56):
contributions to about $500 a month now.
S1 (24:01):
Okay. So you've got enough for 500 a month. And
you said, how much do you think you would need
per month?
S8 (24:10):
Um, after the initial 6000, probably 3000 a month.
S1 (24:18):
Okay. Yeah. So a shortfall of about 2500. Um, and
if we were to look at, you know, the next
24 months. Two years, you know, that's 60,000. Uh, one
year is obviously just 30,000. And then we're adding the
6000 in start up costs on top of it. Um,
you know, and that's just, I would imagine an estimate.
(24:39):
Not that it's not a good estimate. It's just that
anytime we're getting into a new endeavor, there's usually unexpected
expenses that either on the startup side or on the
ongoing side that, um, you know, you may not have
thought of things you're going to need that just kind
of come up. Um, and so is it just you
and your family that's starting it, or are there other
(25:00):
parties involved?
S8 (25:03):
Yeah, it is a whole board. And the board, um,
you know, we'd like to always be in agreement and, um,
some feel like we should wait and, uh, garner more
community and contributions, and some think we should take it
(25:24):
on faith.
S1 (25:25):
Yeah. And what would that look like if you took
it on faith? Are you talking about getting a loan
of some kind?
S8 (25:32):
Yeah, we would have to borrow.
S1 (25:35):
Okay. And is the board willing to contribute to this,
or do they have the ability to.
S8 (25:43):
They already are.
S1 (25:45):
Okay. Yeah. And so they're part of the 500 a month.
S8 (25:51):
It's probably at least half of that, if not more.
S1 (25:57):
Okay. All right. Yeah. I mean, I would be in
the camp that says, let's wait. Uh, and here's why.
You know, I think going into debt to start a
ministry is generally unwise. I mean, Proverbs 22 seven, the
borrower is the slave to the lender. So debt creates
pressure that can distract from the mission and the burden, uh,
(26:18):
you know, the future ministry efforts, it also assumes, upon
God's future provision, rather than waiting for his present supply.
And I think ministry really should flow from faith and
not financial presumption. So, you know, I think I would
use this as an indication of the need and the
(26:38):
support of God's people to fund the work. Um, and
I would say, you know, when that's evident by way
of provision, I mean, you know, the idea that you
need 6003 thousand a month and we're at 500, I
would say is at the very least just an indication
(26:58):
that perhaps a pause is necessary just to say, okay,
why is that? Is it that we haven't communicated the
vision clearly? Is there less need? Uh, you know, for
this ministry than we thought? Uh, is there is there
less people who are interested in supporting it than we thought?
Or do we just need to give it more time
and perhaps do a better job of communicating the heart
(27:21):
behind it. Um, but in any case, I would say,
you know, that that that's at least evidence of perhaps
we slow down and we and we wait and we
continue to pray and we continue to tell the story and,
you know, wait for people to step up because the
idea that you would take on that in the form
(27:42):
of debt, especially with the ongoing carrying costs of this
on a monthly basis that, you know, would would run
you 36,000 a year, and at best you've got 6000
of that committed. Um, you know, that's a pretty steep obligation.
And if the people who are going to be leading
it are not in a position to fund that, they
(28:04):
don't have the financial ability to do that, you know,
that that could spiral pretty quickly. And I would just
say I would have confidence in saying that, you know,
if this is where God is leading, then where he's leading,
he will provide. And let's, you know, trust him in
faith for that. But let's not get ahead of him
(28:24):
by taking on debt, especially just given the warnings in
Scripture around debt. Does that make sense?
S8 (28:31):
It sure does. Thank you.
S1 (28:34):
Yeah. Uh, but I don't want to in any way. Squelch. Yeah. What?
What you're believing God for. But let's believe him for it,
and then let's watch him provide and then move. And
so maybe this is an opportunity to start small and,
you know, scale resources as they come in. Maybe we're
building partnerships. Uh, you know, and looking for people to
(28:57):
invite into this. You know, maybe you phase it out. Uh,
or maybe it's just to pray and wait season and,
you know, let's see God provide even miraculously. And then
you're ready to move. But I don't think we should
get ahead of him in that. And I would say
we would be just based on what you're describing here
and the dollars that have been committed thus far. So
(29:19):
and I appreciate your call today. Thanks for your kind
remarks about the program. And if I can help further, uh,
don't hesitate to reach out. Lord bless you. Uh, Missouri
is where Glenn's located. Go ahead, sir.
S9 (29:30):
Hey, Ron.
S10 (29:31):
This calling from Missouri. Love your show. I listened to it,
and you guys help a lot of people. My question.
S9 (29:39):
Is, my stepfather passed away in 2021, and I took
over my mother's finances. She was 89. She's now 93.
They had accounts spread everywhere. They lived in the United
States because he was an airline pilot. Every time they moved,
they never closed their accounts. So when I took over
(30:02):
the finances, there were money markets and checking accounts and, like,
four different states. Yeah. And I've consolidated I've consolidated all
those into a money market account. My question is there is, um,
a small investment with Charles Schwab, and my mother has
an IRA with about $14,000 in it. What do I.
(30:26):
What should I do with that?
S1 (30:28):
Yeah. Good question. Uh, I appreciate that background. That's really helpful.
Let's do this. We're going to take a quick break.
When we come back, I'll give you my thoughts on
where you go from here with that. Uh, Bob Dole
will also stop by. We'll talk to Bob in the
next segment. Plus, editor in Ohio, unfortunately, has been the
victim of some online fraud and wondering what he can
(30:48):
do to, Lord willing, ensure this doesn't happen again. Those
questions and more. Plus Bob Dole just around the corner.
Stay with us. Great to have you with us today
on Faith and Finance Live. Coming up in just a moment,
(31:09):
Bob Dole stops by. We'll get Bob's take on the
markets with the S&P 500 and the Nasdaq had fresh
new records to start the week. Before the break, we
were talking to Glenn in Missouri. His stepfather passed away
in 2021. His mother is currently 93. He's had a
time pulling all the accounts together, various checking accounts and
(31:31):
money market accounts. He's also discovered an IRA. Just wondering
kind of how to proceed here, especially with this small
$14,000 IRA at Charles Schwab. Let me just confirm, Glenn,
your mom was, in fact, the beneficiary listed on that account.
Is that right?
S10 (31:48):
Yes.
S9 (31:49):
Because I had to convert. I had to convert all
the I had to close the account in my stepfather's
name and then reopen it in my mother's name.
S1 (31:58):
Yeah. Yeah. Which is obviously allowed as a spouse beneficiary
or spouse beneficiary. You know, she can roll it into
her own IRA rather than keeping it as an inherited IRA,
which just simply means that now the required minimums would
be based on her age, and she doesn't have to
worry about his required minimums or any kind of, you know,
(32:21):
ten year rule or anything like that. So at this
point now, this is her retirement account, $14,000. What should
she do with it? Well, uh, I think she should
look at it in light of all of the other
assets that she has, however much or little she has,
and manage it appropriately. So what is her age?
S9 (32:42):
Uh, 93.
S1 (32:44):
Okay. 93. Yeah. I mean, so, um, does she have
her income covered through, you know, Social Security or other sources?
S9 (32:53):
Yes, sir. She's got Social Security, and my stepfather was
retired military, so she's got a military spouse, uh, payment
that comes in.
S1 (33:04):
Yeah. Okay. Yeah. And so you wouldn't expect she would
need this? Um, I would imagine. Is that right? Or
do you have any kind of purpose that you would
use it for?
S9 (33:15):
Well, she's she's getting ready to go into assisted living.
And so basically she's got probably she's got long term
care insurance. Uh, but she's not got to the point
where it's going to kick in yet. So I'm going
to have to start using some of her savings to
pay for the assisted living until she gets to a
(33:38):
point where the long term care kicks in. And she's,
I mean, between the IRA, her savings and the $23,000
with Charles Schwab, she's probably got $280,000. So it's not
a it's not an urgent need right now. I just
don't know what to do with the IRA. And then
(33:58):
the Charles Schwab investment.
S1 (34:00):
Yeah, well, it sounds I mean, first of all, you probably, um,
you know, given the amount of assets she has, you
could get an advisor involved. So you could look for
a certified Kingdom advisor there in Missouri. Just go to
find a com. Um, apart from that, I would just
stay very conservative. I mean, really at this point, we're
just trying to preserve the assets that she has for
(34:23):
as long as she can or as long as you can,
helping her avoid the effects of inflation and keep these
funds protected and basically available when she needs them, uh,
you know, to pay for her care. And to your point,
if you've got a period of time where you're trying to,
you know, bridge from where she is now to, uh,
(34:43):
long term care kicking in, that would, uh, cover assisted living, then. Yeah.
That's why this money is there. And so you don't
want to take a lot of risk with it. So
I'd say, you know, inside that IRA, maybe some brokered, um,
you know, CDs, or you could leave it in money market,
you could put it in some short term treasuries. Um,
but really, it's a matter of just preservation of capital,
(35:05):
more even than the return on the investment. And you're
really trying to minimize risk at this point. So I
would say either just take that approach and how you
manage this to preserve it so you can use it
for the purposes you described or get it, you know,
connected with an advisor who could oversee all of it.
S9 (35:24):
Okay. Because, yeah, because that's what I was kind of
figuring with the IRA. Um, the Charles Schwab investment I
was looking at, um, I guess you would call it
cashing that out and just putting that into a CD.
S1 (35:39):
Yeah. Yeah. Is that a retirement account or just a
taxable account?
S9 (35:44):
It's it's just a it's just a taxable account that my,
my stepdad liked to play in the market, but he
never invested more than $20,000 at a time. So it
was just it was just a little. It was his hobby.
S1 (35:59):
Yeah. Yeah. Well, I mean, the other option is you can.
Schwab offers brokered CDs. So if you want to just
leave it right there, um, you know, these are CDs
issued by banks, but purchased through Schwab. Uh, they're still
FDIC insured. So you could compare those rates that they
might be offer offering to something you might be able
to get just on the open market with a credit
(36:21):
union or a bank. And that might save you a
few steps. Keep it all in one place. But, um,
you know, that's certainly an option, but I think you're
on the right track here with, uh, with what you're doing.
And thanks for checking in with us, Glenn. If we
can help further, don't hesitate to reach out. Uh, we're
going to head to Ed in Ohio here in a second.
But first, Bob Dole is here. Uh, Bob checks in
with us each Monday. Good afternoon to you, sir. New
(36:43):
highs on the S&P and the Nasdaq, huh?
S11 (36:46):
Yes. Greens better than red, as they say. Rob on.
Onward and upward.
S1 (36:51):
Yeah, that's exactly right, Bob. Uh, what do you make
of this market? I mean, I know you keep talking
about this thread, this needle, uh, you know, between the, uh,
these richly priced stocks and an economy that seems like
it's cruising along pretty well, but, uh, certainly some some
signs of weakness along with it.
S11 (37:09):
Exactly. I mean, at these valuations, things need to be
nearly perfect. Uh, one concern would be the economy is
too strong and inflation, which has been ticking up and
is higher than the fed would like to see, it
gets aggravated a bit more. And that event, uh, valuation
levels p e ratios would come down. That's not good.
(37:31):
The other extreme is the economy really is slowing as
some of the labor statistics show. And that would cause
earnings to fall short. And at these valuations that wouldn't
be good either. So this in between where we've been
thankfully living where growth is good but not so strong
as to stoke inflation has been the sweet spot and
(37:52):
the market has just climbed uh, unbelievable heights.
S1 (37:56):
Yeah, it sure has. Uh, Bob, would you expect that, uh,
there'd be any fallout in the markets related to the
government shutdown?
S11 (38:04):
Unlikely. Rob. The history is that shutdowns don't matter a
whole lot. Most of them don't last long. I mean,
if it goes, this goes on weeks and weeks. It
would do damage to the economy. But if it's the
normal quote unquote shutdown, which is a few days to
a couple of three weeks, we'll blink and move on.
S1 (38:25):
Yeah. What would be the primary indicator you think, that
the fed is looking for to proceed with this next
rate cut that everybody's anticipating?
S11 (38:34):
I think what they're going to see is that the
economy is the labor statistics are still a little on
the sloppy side. That's what concerns them. And of course
on the other side they want to make sure inflation's
not creeping higher. If it's not and growth is a
little on the weak side. They can they can cut
again certainly in December. Some are looking for here in
(38:57):
October and December.
S1 (38:59):
Bob we talk a lot about faith based investing and
just the exciting Uh, momentum right now in that space, uh,
for folks who are just brand new to this idea
and thinking, how much do I have to give up
in order to invest this way, what would you say
to them?
S11 (39:15):
I'd say wrong question. I mean, I shouldn't say it
that way. It is a good question, but the answer
is no. You don't have to give up anything. Um,
many studies now of empirical results show that, uh, a
faith based portfolio does not, uh, fall short in performance
terms of a broad based portfolio. And in most cases,
(39:37):
most of us are not excluding that much. We're excluding
companies that do bad, uh, that make products that hurt, um,
sometimes kill people. We don't want to own those. And conversely,
this is an important part. We give an extra kiss
to companies that are doing good, and companies that are
doing good tend to perform pretty well.
S1 (39:57):
Yeah, no doubt about it. Well, keep up the good work, sir.
We appreciate your time today.
S11 (40:02):
Thanks for the time as well.
S1 (40:04):
All right, that's Bob Dole. He's CEO at Crossmark Global Investments.
You can learn more at Crossmark global.com. All right two
Ohio Ed's been waiting patiently. How can I help you? Ed?
S12 (40:14):
Well hi, Rob. Good to talk to you again. It's
been a while. I'll just give you some background. I'm
a retired fed, originally from New York, and now I
live outside of Cleveland in Parma, Ohio. I have spoken
a couple of times in the past. Okay. I've been
a member of the Federal Credit Union since 1994, and
I've had, you know, checking accounts, savings accounts, CDs and
(40:36):
things like that. Uh, I, uh, I there is an
online process now, there wasn't 30 years ago, but there
is an online process where it's multifactor. So you have to,
you know, enter your username, password, they text you a code,
then you can log on. Okay. So here's the deal
out of the blue. And I very rarely use this
(40:57):
my checking account or anything to make any purchases or
anything like that. The only thing I use it for
is I pay my credit card bills and my health insurance.
You know what I mean? That the credit card bills.
I go in and I authorize a payment and my
health insurance, basically that that's set up for auto pay
on Friday. Out of the blue, they gave me a call.
(41:18):
Thank God there's somebody out there watching. They said, well, Mr. Gugliucci,
did you just throw out the rice? Two payments? Uh,
$1,000 each. One on Thursday and one on Friday to
a finance company in Ohio, in California called password. I mean,
something like that. I said, hell no. You know what
(41:38):
I mean? They said, well, okay, basically, so they lock
the accounts and I basically now have to change, you know,
I have to go open up another account. Uh, there's
a there's a dispute process where they're going to investigate it.
It's fraud, things like that. But how does something like
this happen and how can I keep it? I never
give my password out to anybody. I change it, you know,
(42:00):
routinely I, I go online at least twice a week
to check my accounts and see what's going on. But
this one just just hit out of the blue.
S1 (42:09):
Yeah. Well, you know, hackers can get in, and it's
not necessarily because you did anything wrong. I mean, it
could be data breaches. It could be, um, you know,
it could be a phishing scam or, you know, a
weak or reused password, but it could be that, uh,
your bank or credit union got hacked and your information
(42:32):
was stolen. The key is moving forward. You're doing the
right things. I mean, update passwords regularly, set up account alerts,
don't use public Wi-Fi. Uh, you know, freeze your credit,
check your credit reports, and, um, respond quickly when they
reach out to you. Those are the keys, and you're
doing it. Hey, thanks for your call. Unfortunately, I'm out
of time. Faith and finance live as a partnership between
(42:54):
Moody Radio and Faith fi. Come back and see us tomorrow.
Bye bye.
Health insurance or health cost sharing, which is the better
fit for your family? Hi, I'm Rob West. With open
enrollment upon us, it's the perfect moment to explore your choices.
Joining me today is Lauren Guida to highlight the key
differences between health insurance and health cost sharing. And then
we'll take your calls at 800 525 7000. That's 800
(00:31):
525 7000. This is faith and finance. Live biblical wisdom
for your financial decisions. Lauren Jadick is the senior director
of external affairs at Christian Healthcare Ministries, the nation's longest
serving health cost sharing ministry and a longtime proud underwriter
(00:52):
of this program. Lauren, great to have you back with us.
S2 (00:55):
Oh, Rob, always good to be with you on the show.
Thanks for having me.
S1 (00:58):
Lauren. Give us a quick overview of how most traditional
health insurance plans operate.
S2 (01:05):
Sure. Well, as you mentioned in your intro, Rob, we're
coming up on the open enrollment season for health insurance,
which is November 1st through January 15th of 2026. And,
you know, health insurance, most people are familiar with it.
But there's some key characteristics. You know, it's usually that
you have to follow a provider network, you know, choose
(01:28):
providers in a list that's given to you. And, you know,
sometimes there's preauthorization or you have to get a referral
to see a doctor. Um, but on the cost side,
it's generally pretty high because, you know, insurance companies are
out to make a profit, which isn't necessarily a bad thing,
but that can conflict with, you know, patient care sometimes. Um,
(01:50):
and the premiums and deductibles can be quite expensive even
before insurance will even start to cover.
S1 (01:56):
Yeah, that's exactly right. Which really puts the squeeze on
the family budget. So then let's compare that to health
cost sharing. How does that work?
S2 (02:06):
Well, health cost sharing I like to say, is a
way of getting your medical bills taken care of. You know,
the end result is the same in that that happens. Um,
but we operate differently because we don't have provider networks. Uh,
our members can choose their own providers. Uh, you know,
they're not dealing with a big bureaucratic organization. You know,
(02:26):
we're a ministry, a nonprofit, uh, and members what they
do is they send in a monthly what we call
a monthly contribution, and it's a set amount of dollars
every month. We pool those resources and reimburse our members
for their medical bills. We call that sharing.
S1 (02:45):
Mhm. Yeah. And you've been doing it for a long time.
And I know more than $10 billion with a B
has gone out. Uh can you walk us through how
health cost sharing works in a real life situation, what
would it look like for a typical family, and how
exactly do the bills get paid?
S2 (03:02):
Yeah, absolutely. So what you would do, like I said earlier, is,
you know, you go to the healthcare provider of your
choice as long as the treatment falls within the Christian
Healthcare Ministries guidelines, you have a lot of freedom and
flexibility there. Um, and when you get your treatment, you
let them know that you're legally a self-pay patient. And
(03:23):
that actually gives you the opportunity to receive discounted rates.
Sometimes upwards of 40% is what we typically see. And
then c.h.m. Works with your healthcare providers as needed. Um,
you know, you set up a payment plan in the
meantime until CMN reimburses the cost of your care. So
it's very simple. Um, you know, easy to do. And
(03:45):
we're always here to help our members with questions they
have along the way.
S1 (03:48):
Well, and we even have some of our team members
here at Faith fi on the program, and they love it. Now, Lauren,
with open enrollment right around the corner, what should folks
keep in mind as they weigh their options?
S2 (04:00):
Yeah, there are a few different things. You know, we
just got done with the summer travel season. Um, people
might be thinking about vacation for next year, but I
think a lot of people don't realize that their insurance
does not always go with them. If they're getting treated
out of the country or even out of their own state.
It just depends on what kind of plan you have. Um,
with C.h.m. You know, you can take it just about anywhere.
(04:23):
It's very portable, flexible. Um, but also, again, going back
to the cost, that's a major deciding factor for people.
And you really have to think about not just how
much does my monthly premium cost, but how much am
I really paying out of pocket after deductibles and co-insurance
and stuff like that? So C.h.m. Does not have, uh,
(04:43):
co-insurance or copays or anything of the sort. We share 100%
of qualifying medical bills according to our guidelines.
S1 (04:51):
I love it, and it's biblical at its core, it's
a non-profit ministry, not an insurance company. Members pray for
one another and receive prayer support, and your monthly gift
is going directly to help another member in need. Lauren,
we're so honored to be partnered with you, and thanks
for stopping by today.
S2 (05:09):
Thanks so much, Rob. Always glad to be with you.
S1 (05:11):
Folks, check out at resources. That's. Where we'll be right back.
S3 (05:34):
The opinions offered during this program represent the personal or
professional opinions of the participants, given for informational purposes only.
Any information provided is not intended to replace advice from
a financial, medical, legal, or other professional who understands your
specific situation.
S1 (05:58):
So delighted to have you with us today on Faith
in finance live, I'm Rob West. We are looking forward
to taking your calls and questions today. The way to
get in on the conversation is by calling 800 525 7000. Again,
that's 800 525 7000. Whatever you're thinking about in your
financial life today, we would love to tackle it. Now,
(06:20):
before we dive into those calls and check in on
what's making headlines today, let me just take a moment
to say an enormous thank you to so many of
you listening right now who are a part of our
fall share event last week, especially so many of you,
Faith and Finance Live listeners that we heard from last week.
You are incredible, and we are just so grateful for
(06:41):
the way that you just supported the work of Moody Radio.
You were there to give generously and, um, we just
couldn't be any more grateful to partner with you, to
take God's Word to people in your communities and around
the globe. And in part, your support of Moody Radio
supports this program, because our partnership at Faith Fi and
(07:05):
Moody Radio is what brings you this broadcast each day.
So just know how thankful I am for you and
your incredible generosity. And I can't wait for, uh, another
year of incredible ministry together as we serve God's people.
So thank you from the bottom of our hearts. Alright, uh,
we're ready to take your questions today. We're ready to
(07:25):
get back to business and help you live as a
wise and faithful steward. So that number to call today
is 800 525 7000. Let's begin in Pembroke Pines, Florida. W.r.m. Gill,
go right ahead.
S4 (07:39):
Yes. Thank you for taking my call. Yeah, I have
a little over 100,000. I want to invest between the
S&P 500, the Nasdaq and the Dow And I'm not
sure if, uh. Too much risk there. Maybe, maybe if
I can put everything on the S&P 500 to take
less risk. And what what do you take on that?
S1 (07:59):
Yeah. You know, the only challenge with that, Gil, um,
is that you're going to be highly concentrated in, first
of all, all stocks, no bonds. But secondly, the the
three indexes you just mentioned are all comprised of basically
large and mega cap stocks. So the Dow Jones is
(08:19):
the 30, uh, you know, largest companies in the US.
The S&P 500 is the 500 largest companies. And then
the Nasdaq is just littered with mega tech, uh, mega cap,
if you will, meaning very large tech companies. So you're
very highly concentrated in the US and in the large
(08:40):
capitalization companies which have done well, uh, it doesn't mean
they won't continue to do well. It's just that you're
not going to be very well diversified, meaning you're not
going to have any other categorization of companies in there.
You're not going to have mid and small cap companies.
You're not going to have any international exposure. And then
(09:00):
when we move beyond the stocks, uh, you know, you're
not going to have any exposure to bonds and or
precious metals. Uh, I mean gold is up significantly now.
Will it keep going? Nobody knows. But it's a great
way to diversify. So let's back up just for a
moment and talk about how this 100,000 fits alongside the
(09:20):
other investments in assets that you have. Let me start
with your age, if you don't mind me asking.
S4 (09:26):
Uh, 76. Just 76.
S1 (09:29):
Got it. So typically for somebody who's 76, I would say,
you know, you might want to think about 30 to 40%
in stocks. Um, and then put the rest 60 to 70%
in bonds. Now do you have any other investments to
speak of.
S4 (09:48):
Yeah, I have a 170,000 on, uh, on the S&P.
I had them in I had them in the European
market with, with the uh, with the S&P. But the
European market didn't do no good. I didn't make a penny.
I only made, uh, the S&P, I made like 66,000
(10:10):
and change. So that's why I want to get out
of the European America, because I didn't do no good
at all. But I have those in, uh, an annuity
for five years with one year. One year. I got
four more years ago. But what I did, I was
I was able to, uh, change it to everything in
the S&P 500 because the European wasn't doing good and
the S&P 500 did good last year, had a 10%, 10% cap,
(10:34):
which I did good, I did good 10% cap.
S1 (10:38):
So you were in an insurance product. Is it like
an annuity?
S4 (10:42):
Yeah.
S1 (10:43):
Yeah okay. So that's where the cap comes in. But
with the 100,000, you're not looking to put it into
an annuity. You're going to invest it directly.
S4 (10:52):
I was thinking about what was the best thing to
do with us before the 1000.
S1 (10:58):
I'll tell you what I would recommend. Yeah, I think
that's the key is, you know, are you looking at
taking too much risk by putting, you know, 100% of
your investable assets in basically mega cap and large cap
US stocks. And although you're right, the European markets have
not done well, the US has been the place to
(11:18):
invest and we've seen dramatic increases. We're bumping up against
new all time highs every day on most of the
the US indexes. It doesn't mean that's always going to
be the case. In fact, many would argue that despite
the challenges we've got economically, you know, with a slowing
labor market, you know, we've got some inflation that's sticking around. Um,
(11:39):
you know, that on top of these rich valuations, meaning
stocks are priced very high right now that you are
taking a pretty significant amount of risk by putting 100%
of that in stocks, and especially in those specific category
of stocks. And so if the market was down 20
or 30%, the question is at 76, would you be
(12:01):
able to weather that or, you know, would that derail
your financial life in such a way that it would
be problematic? And if so, I would say, let's get
back to a normal diversification approach for you in terms
of asset allocation, where, you know, instead of 100% in stocks,
maybe you think about 30 to 40% in stocks and
(12:21):
put the rest in bonds. Better yet, Gil, I would
probably recommend you connect with an advisor who could look
at the 175 and the 100 and help you put
together a well thought out investment strategy that, you know,
balances risk with an appropriate rate of return. Your income
needs and your tax efficiency and manages the portfolio for you.
(12:46):
The challenge is when you try to do it yourself,
you could end up chasing returns and inadvertently be adding
a whole lot of risk, and then end up paying
the penalty for it. If this market turns down, which
it normally does in cycles, we haven't had one in
quite a while, but that could really hurt you financially.
(13:07):
Does that make sense?
S4 (13:09):
Yeah. Uh, the only thing is I can afford it to, uh,
whether whether you know it for six months or a
year or whatever, I can wait. I can wait till
the market comes down and wait till they come back
up again. Sure, I'm going to do that because, okay,
when I get from retirement, I can pay my bills.
And and plus I got some small investment that I can,
(13:33):
you know, I can move around. But but I like
when I'm listening to you what you talk. So when
you write the story. Tory, the Tory for 30 to 40%
in stock and the other one bonds? Yes. What kind
of bonds are government bonds?
S1 (13:48):
Oh, yeah. Basically, probably largely medium term and short term
government bonds. And then, you know, maybe through a bond
index fund or a managed bond fund. Um, so, you know,
if I were you, Gil, I would connect with a
certified Kingdom advisor there in Pembroke Pines and just have
somebody look over your whole strategy, build you a plan,
(14:11):
and then manage the money with the stocks and bonds,
maybe a little precious metals alongside it. So if I
were you, I'd head to our website, uh, at find
a find a Kdka.com. Thanks for your call. Lord bless you.
We'll be right back.
S5 (14:35):
Great to have you with us today on Faith and
Finance live. I'm Rob West.
S1 (14:38):
We're looking forward to taking your calls and questions here
in this segment. Coming up in our final segment today,
Bob Dole stops by. Bob will check in with us
and preview the markets for the week. Uh, the big
board's mix today. The Dow Jones off just slightly. The
S&P 500 and the Nasdaq at Fresh Records again pushed
(14:59):
up largely by AMD the chip maker. But uh fresh
highs on the S&P 500 and the Nasdaq will get
Bob's take on all of that straight ahead plus the
government shutdown. How might that affect the markets? We'll get
Bob's take on that straight ahead. In the meantime, uh,
Carolyn is in Saint Charles. Carolyn, how can I help?
S6 (15:20):
Yes, thanks. Um, I called before about Qcds, and you
explained them very well, but they still don't make sense
at age 70, which is what I'm able to take. Um,
you lose the interest or any earnings on that money
and you can't deduct it. The contribution to your taxes.
(15:42):
So why would anybody do a QCD at 70?
S1 (15:45):
Yeah, it's a good question. So you're right at 73
when you've got to take the required minimum, it's a
no brainer because you've got to take it out anyway.
So you might as well get it out without paying
the taxes. Here's why you do it at 70. If
you're already giving to a charity, most people do that
out of cash. So you might write a check to
(16:07):
a ministry or your church out of checking or savings.
And so what a lot of people will do is say,
wait a minute. Instead of writing that check out of
checking or savings after tax money, I'm going to give
the same amount from my IRA, and that's going to
allow me to get it out of there without paying
any tax on it, which there's no other way of
(16:29):
doing that. You see, that money went in without any
tax being paid because you got the deduction and then
every other way you get it out, whether it's you
taking it out or your heirs taking it out. When
you pass it down, they're going to add it to
their taxable income or you are. But the QCD offers
the only way to get the money out without it
(16:50):
ever being taxable to anybody. And so this is a
way to essentially take the money out of the IRA
bucket instead of the after tax bucket. Give the same
amount to the charity or the ministry but never pay
any tax on it. Does that make sense?
S6 (17:07):
Yes it does. Yes it does. Then it wouldn't make
sense to take it out of a Roth IRA, would it?
S1 (17:16):
Well, you certainly could. I mean, I think at the
end of the day it comes down to, you know,
if the Lord is leading you to to give generously
to whatever ministry you know, or church you're talking about. Um,
you know, so often we only think of our giving
in terms of the cash. But here's the reality 90%
of our wealth is held in non-cash assets, IRAs and
(17:40):
investments in our home and, you know, other type of
illiquid assets. Only 10% of our wealth is held in
the form of cash. And yet 90% of our giving
happens in the form of cash. So our greatest opportunity
for giving as the Lord leads is on our balance sheet.
And one of those assets sitting on your balance sheet
(18:01):
is your IRA. And so if you wanted to do some,
you know, some significant giving from your balance sheet, now
because you're 70.5 or older, you're able to do that
without having any tax liability added to it. So it's
a powerful giving vehicle, especially if you've over accumulated. I
talked to a lot of people on this program, Carolyn,
(18:23):
I'm not sure if you're in this situation or not,
but they have more than they'll ever need. You know,
they I talked to a lady a few weeks ago.
She said, Rob, I'm going to die at some point
when the Lord calls me home, and I'll probably have
north of $6 million in my trust, why am I
not giving hundreds of thousands of dollars away right now?
And I'll say, yeah, I agree. Why let it sit
(18:45):
there when it can get into the kingdom? And so
this is a way to do that. Um, now to
your question about the wrath. Either one can be great. Again,
the reason why you may want to prioritize the the
traditional IRA over the wrath is it's this unique opportunity
that you have of getting that money out without it
(19:06):
being taxable, which it would be for you or again,
your heirs, if it doesn't come out by way of
a QCD.
S6 (19:15):
Okay. Is there a certain level of tax, you know,
or what income level would it not make sense?
S1 (19:25):
Um, it really makes the it's really not a matter
of an income level. I mean, in, in 2025, you
could give $108,000, up from your IRA as a qualified
charitable distribution. Um, and, and you can even do some
of that into a charitable gift annuity if you wanted to.
(19:47):
But but basically you can do up to 108,000. Um,
and there are no phase outs on that in terms
of your income level. So I like this as a
way of getting that money out of that account and
getting it into kingdom building activities without it adding one
penny to your taxable income, which is a real plus.
S6 (20:09):
Okay. Okay. Thank you.
S1 (20:11):
Okay. All right. You're welcome. Thanks for your call. Lord
bless you. Hey, stay on the line. I'm going to
send you a copy of our magazine, just so you
can read through some of the articles in there. I
think you'll enjoy it. God bless you. Let's go to Lincoln, Nebraska. Pat.
Go ahead.
S7 (20:26):
Hi, Rob. Thanks for taking my call. I just have
a question about retirement. Yeah, I'll be retiring soon and
I'll get a teacher's pension. And then I'm also going
to be receiving Social Security, and I think I can
make $23,000 while I'm on Social Security. And I didn't
(20:46):
know if my teacher's pension would go towards that.
S1 (20:51):
Yeah. Good question. Um, so first of all, you are correct.
There is a limit on the amount that you can earn. Uh,
it's not exactly 23,000 close to it's $22,320. So, uh,
if you take Social Security before full retirement age, um,
(21:12):
and you continue to work for wages or self-employment income,
if you earn over 22,320, Social Security will withhold a
dollar in benefits for every $2 you earn above that
limit until the year that you turn full retirement age.
And then it jumps up. Um, so that's the limit. Now,
you will eventually get all that money back when you
(21:35):
reach full retirement age over a number of years in
the form of a higher check, but it will drop
it down. Now, uh, beyond that, to your second question,
your teacher's pension does not count toward that 22,320. That's
retirement income, not earned income. So hope that helps. Um,
I'll connect with you offline and see if you have
(21:56):
any follow up questions. Stay right there. We'll be right back. Hey,
thanks for joining us today on Faith and Finance Live.
Coming up in our next segment, Bob Dole stops by
fresh new highs in the market today, at least on
the S&P 500 and the Nasdaq the Dow Jones off
(22:19):
just 63 points. We'll get Bob's take on what's moving
the markets, including how this government shutdown, if it lingers,
will affect, uh, the stocks as well. We'll get Bob's
take on that. In the meantime, let's head back to
the phones. Indiana's where Ann is located and go right ahead.
S8 (22:39):
Hey, Rob. Um, I rely on I'm really grateful for
your biblical advice. Grounded in God's word. And that's why
I'm calling in.
S1 (22:48):
Well, I'm so delighted to hear that. Thank you. That's
very kind. How can I help you?
S8 (22:54):
Well, I'm reaching out because we have a new ministry
in our community, and we are probably only about 25% funded.
But we'd really like to get the ministry started biblically. Uh,
how should we handle that? Just as a leadership group
(23:19):
and going forward?
S1 (23:21):
Yeah. Uh, so talk to me about kind of what
are the start up costs course needed. And kind of
where do you stand today?
S8 (23:31):
There is a large portion that's just the start up cost. So, um,
I would say it's probably $6,000 a month that we
actually started up. And that's actually quite small compared to some.
But and then ongoing, we would need probably half of
that $3,000 to continue going, but we've probably only got
(23:56):
contributions to about $500 a month now.
S1 (24:01):
Okay. So you've got enough for 500 a month. And
you said, how much do you think you would need
per month?
S8 (24:10):
Um, after the initial 6000, probably 3000 a month.
S1 (24:18):
Okay. Yeah. So a shortfall of about 2500. Um, and
if we were to look at, you know, the next
24 months. Two years, you know, that's 60,000. Uh, one
year is obviously just 30,000. And then we're adding the
6000 in start up costs on top of it. Um,
you know, and that's just, I would imagine an estimate.
(24:39):
Not that it's not a good estimate. It's just that
anytime we're getting into a new endeavor, there's usually unexpected
expenses that either on the startup side or on the
ongoing side that, um, you know, you may not have
thought of things you're going to need that just kind
of come up. Um, and so is it just you
and your family that's starting it, or are there other
(25:00):
parties involved?
S8 (25:03):
Yeah, it is a whole board. And the board, um,
you know, we'd like to always be in agreement and, um,
some feel like we should wait and, uh, garner more
community and contributions, and some think we should take it
(25:24):
on faith.
S1 (25:25):
Yeah. And what would that look like if you took
it on faith? Are you talking about getting a loan
of some kind?
S8 (25:32):
Yeah, we would have to borrow.
S1 (25:35):
Okay. And is the board willing to contribute to this,
or do they have the ability to.
S8 (25:43):
They already are.
S1 (25:45):
Okay. Yeah. And so they're part of the 500 a month.
S8 (25:51):
It's probably at least half of that, if not more.
S1 (25:57):
Okay. All right. Yeah. I mean, I would be in
the camp that says, let's wait. Uh, and here's why.
You know, I think going into debt to start a
ministry is generally unwise. I mean, Proverbs 22 seven, the
borrower is the slave to the lender. So debt creates
pressure that can distract from the mission and the burden, uh,
(26:18):
you know, the future ministry efforts, it also assumes, upon
God's future provision, rather than waiting for his present supply.
And I think ministry really should flow from faith and
not financial presumption. So, you know, I think I would
use this as an indication of the need and the
(26:38):
support of God's people to fund the work. Um, and
I would say, you know, when that's evident by way
of provision, I mean, you know, the idea that you
need 6003 thousand a month and we're at 500, I
would say is at the very least just an indication
(26:58):
that perhaps a pause is necessary just to say, okay,
why is that? Is it that we haven't communicated the
vision clearly? Is there less need? Uh, you know, for
this ministry than we thought? Uh, is there is there
less people who are interested in supporting it than we thought?
Or do we just need to give it more time
and perhaps do a better job of communicating the heart
(27:21):
behind it. Um, but in any case, I would say,
you know, that that that's at least evidence of perhaps
we slow down and we and we wait and we
continue to pray and we continue to tell the story and,
you know, wait for people to step up because the
idea that you would take on that in the form
(27:42):
of debt, especially with the ongoing carrying costs of this
on a monthly basis that, you know, would would run
you 36,000 a year, and at best you've got 6000
of that committed. Um, you know, that's a pretty steep obligation.
And if the people who are going to be leading
it are not in a position to fund that, they
(28:04):
don't have the financial ability to do that, you know,
that that could spiral pretty quickly. And I would just
say I would have confidence in saying that, you know,
if this is where God is leading, then where he's leading,
he will provide. And let's, you know, trust him in
faith for that. But let's not get ahead of him
(28:24):
by taking on debt, especially just given the warnings in
Scripture around debt. Does that make sense?
S8 (28:31):
It sure does. Thank you.
S1 (28:34):
Yeah. Uh, but I don't want to in any way. Squelch. Yeah. What?
What you're believing God for. But let's believe him for it,
and then let's watch him provide and then move. And
so maybe this is an opportunity to start small and,
you know, scale resources as they come in. Maybe we're
building partnerships. Uh, you know, and looking for people to
(28:57):
invite into this. You know, maybe you phase it out. Uh,
or maybe it's just to pray and wait season and,
you know, let's see God provide even miraculously. And then
you're ready to move. But I don't think we should
get ahead of him in that. And I would say
we would be just based on what you're describing here
and the dollars that have been committed thus far. So
(29:19):
and I appreciate your call today. Thanks for your kind
remarks about the program. And if I can help further, uh,
don't hesitate to reach out. Lord bless you. Uh, Missouri
is where Glenn's located. Go ahead, sir.
S9 (29:30):
Hey, Ron.
S10 (29:31):
This calling from Missouri. Love your show. I listened to it,
and you guys help a lot of people. My question.
S9 (29:39):
Is, my stepfather passed away in 2021, and I took
over my mother's finances. She was 89. She's now 93.
They had accounts spread everywhere. They lived in the United
States because he was an airline pilot. Every time they moved,
they never closed their accounts. So when I took over
(30:02):
the finances, there were money markets and checking accounts and, like,
four different states. Yeah. And I've consolidated I've consolidated all
those into a money market account. My question is there is, um,
a small investment with Charles Schwab, and my mother has
an IRA with about $14,000 in it. What do I.
(30:26):
What should I do with that?
S1 (30:28):
Yeah. Good question. Uh, I appreciate that background. That's really helpful.
Let's do this. We're going to take a quick break.
When we come back, I'll give you my thoughts on
where you go from here with that. Uh, Bob Dole
will also stop by. We'll talk to Bob in the
next segment. Plus, editor in Ohio, unfortunately, has been the
victim of some online fraud and wondering what he can
(30:48):
do to, Lord willing, ensure this doesn't happen again. Those
questions and more. Plus Bob Dole just around the corner.
Stay with us. Great to have you with us today
on Faith and Finance Live. Coming up in just a moment,
(31:09):
Bob Dole stops by. We'll get Bob's take on the
markets with the S&P 500 and the Nasdaq had fresh
new records to start the week. Before the break, we
were talking to Glenn in Missouri. His stepfather passed away
in 2021. His mother is currently 93. He's had a
time pulling all the accounts together, various checking accounts and
(31:31):
money market accounts. He's also discovered an IRA. Just wondering
kind of how to proceed here, especially with this small
$14,000 IRA at Charles Schwab. Let me just confirm, Glenn,
your mom was, in fact, the beneficiary listed on that account.
Is that right?
S10 (31:48):
Yes.
S9 (31:49):
Because I had to convert. I had to convert all
the I had to close the account in my stepfather's
name and then reopen it in my mother's name.
S1 (31:58):
Yeah. Yeah. Which is obviously allowed as a spouse beneficiary
or spouse beneficiary. You know, she can roll it into
her own IRA rather than keeping it as an inherited IRA,
which just simply means that now the required minimums would
be based on her age, and she doesn't have to
worry about his required minimums or any kind of, you know,
(32:21):
ten year rule or anything like that. So at this
point now, this is her retirement account, $14,000. What should
she do with it? Well, uh, I think she should
look at it in light of all of the other
assets that she has, however much or little she has,
and manage it appropriately. So what is her age?
S9 (32:42):
Uh, 93.
S1 (32:44):
Okay. 93. Yeah. I mean, so, um, does she have
her income covered through, you know, Social Security or other sources?
S9 (32:53):
Yes, sir. She's got Social Security, and my stepfather was
retired military, so she's got a military spouse, uh, payment
that comes in.
S1 (33:04):
Yeah. Okay. Yeah. And so you wouldn't expect she would
need this? Um, I would imagine. Is that right? Or
do you have any kind of purpose that you would
use it for?
S9 (33:15):
Well, she's she's getting ready to go into assisted living.
And so basically she's got probably she's got long term
care insurance. Uh, but she's not got to the point
where it's going to kick in yet. So I'm going
to have to start using some of her savings to
pay for the assisted living until she gets to a
(33:38):
point where the long term care kicks in. And she's,
I mean, between the IRA, her savings and the $23,000
with Charles Schwab, she's probably got $280,000. So it's not
a it's not an urgent need right now. I just
don't know what to do with the IRA. And then
(33:58):
the Charles Schwab investment.
S1 (34:00):
Yeah, well, it sounds I mean, first of all, you probably, um,
you know, given the amount of assets she has, you
could get an advisor involved. So you could look for
a certified Kingdom advisor there in Missouri. Just go to
find a com. Um, apart from that, I would just
stay very conservative. I mean, really at this point, we're
just trying to preserve the assets that she has for
(34:23):
as long as she can or as long as you can,
helping her avoid the effects of inflation and keep these
funds protected and basically available when she needs them, uh,
you know, to pay for her care. And to your point,
if you've got a period of time where you're trying to,
you know, bridge from where she is now to, uh,
(34:43):
long term care kicking in, that would, uh, cover assisted living, then. Yeah.
That's why this money is there. And so you don't
want to take a lot of risk with it. So
I'd say, you know, inside that IRA, maybe some brokered, um,
you know, CDs, or you could leave it in money market,
you could put it in some short term treasuries. Um,
but really, it's a matter of just preservation of capital,
(35:05):
more even than the return on the investment. And you're
really trying to minimize risk at this point. So I
would say either just take that approach and how you
manage this to preserve it so you can use it
for the purposes you described or get it, you know,
connected with an advisor who could oversee all of it.
S9 (35:24):
Okay. Because, yeah, because that's what I was kind of
figuring with the IRA. Um, the Charles Schwab investment I
was looking at, um, I guess you would call it
cashing that out and just putting that into a CD.
S1 (35:39):
Yeah. Yeah. Is that a retirement account or just a
taxable account?
S9 (35:44):
It's it's just a it's just a taxable account that my,
my stepdad liked to play in the market, but he
never invested more than $20,000 at a time. So it
was just it was just a little. It was his hobby.
S1 (35:59):
Yeah. Yeah. Well, I mean, the other option is you can.
Schwab offers brokered CDs. So if you want to just
leave it right there, um, you know, these are CDs
issued by banks, but purchased through Schwab. Uh, they're still
FDIC insured. So you could compare those rates that they
might be offer offering to something you might be able
to get just on the open market with a credit
(36:21):
union or a bank. And that might save you a
few steps. Keep it all in one place. But, um,
you know, that's certainly an option, but I think you're
on the right track here with, uh, with what you're doing.
And thanks for checking in with us, Glenn. If we
can help further, don't hesitate to reach out. Uh, we're
going to head to Ed in Ohio here in a second.
But first, Bob Dole is here. Uh, Bob checks in
with us each Monday. Good afternoon to you, sir. New
(36:43):
highs on the S&P and the Nasdaq, huh?
S11 (36:46):
Yes. Greens better than red, as they say. Rob on.
Onward and upward.
S1 (36:51):
Yeah, that's exactly right, Bob. Uh, what do you make
of this market? I mean, I know you keep talking
about this thread, this needle, uh, you know, between the, uh,
these richly priced stocks and an economy that seems like
it's cruising along pretty well, but, uh, certainly some some
signs of weakness along with it.
S11 (37:09):
Exactly. I mean, at these valuations, things need to be
nearly perfect. Uh, one concern would be the economy is
too strong and inflation, which has been ticking up and
is higher than the fed would like to see, it
gets aggravated a bit more. And that event, uh, valuation
levels p e ratios would come down. That's not good.
(37:31):
The other extreme is the economy really is slowing as
some of the labor statistics show. And that would cause
earnings to fall short. And at these valuations that wouldn't
be good either. So this in between where we've been
thankfully living where growth is good but not so strong
as to stoke inflation has been the sweet spot and
(37:52):
the market has just climbed uh, unbelievable heights.
S1 (37:56):
Yeah, it sure has. Uh, Bob, would you expect that, uh,
there'd be any fallout in the markets related to the
government shutdown?
S11 (38:04):
Unlikely. Rob. The history is that shutdowns don't matter a
whole lot. Most of them don't last long. I mean,
if it goes, this goes on weeks and weeks. It
would do damage to the economy. But if it's the
normal quote unquote shutdown, which is a few days to
a couple of three weeks, we'll blink and move on.
S1 (38:25):
Yeah. What would be the primary indicator you think, that
the fed is looking for to proceed with this next
rate cut that everybody's anticipating?
S11 (38:34):
I think what they're going to see is that the
economy is the labor statistics are still a little on
the sloppy side. That's what concerns them. And of course
on the other side they want to make sure inflation's
not creeping higher. If it's not and growth is a
little on the weak side. They can they can cut
again certainly in December. Some are looking for here in
(38:57):
October and December.
S1 (38:59):
Bob we talk a lot about faith based investing and
just the exciting Uh, momentum right now in that space, uh,
for folks who are just brand new to this idea
and thinking, how much do I have to give up
in order to invest this way, what would you say
to them?
S11 (39:15):
I'd say wrong question. I mean, I shouldn't say it
that way. It is a good question, but the answer
is no. You don't have to give up anything. Um,
many studies now of empirical results show that, uh, a
faith based portfolio does not, uh, fall short in performance
terms of a broad based portfolio. And in most cases,
(39:37):
most of us are not excluding that much. We're excluding
companies that do bad, uh, that make products that hurt, um,
sometimes kill people. We don't want to own those. And conversely,
this is an important part. We give an extra kiss
to companies that are doing good, and companies that are
doing good tend to perform pretty well.
S1 (39:57):
Yeah, no doubt about it. Well, keep up the good work, sir.
We appreciate your time today.
S11 (40:02):
Thanks for the time as well.
S1 (40:04):
All right, that's Bob Dole. He's CEO at Crossmark Global Investments.
You can learn more at Crossmark global.com. All right two
Ohio Ed's been waiting patiently. How can I help you? Ed?
S12 (40:14):
Well hi, Rob. Good to talk to you again. It's
been a while. I'll just give you some background. I'm
a retired fed, originally from New York, and now I
live outside of Cleveland in Parma, Ohio. I have spoken
a couple of times in the past. Okay. I've been
a member of the Federal Credit Union since 1994, and
I've had, you know, checking accounts, savings accounts, CDs and
(40:36):
things like that. Uh, I, uh, I there is an
online process now, there wasn't 30 years ago, but there
is an online process where it's multifactor. So you have to,
you know, enter your username, password, they text you a code,
then you can log on. Okay. So here's the deal
out of the blue. And I very rarely use this
(40:57):
my checking account or anything to make any purchases or
anything like that. The only thing I use it for
is I pay my credit card bills and my health insurance.
You know what I mean? That the credit card bills.
I go in and I authorize a payment and my
health insurance, basically that that's set up for auto pay
on Friday. Out of the blue, they gave me a call.
(41:18):
Thank God there's somebody out there watching. They said, well, Mr. Gugliucci,
did you just throw out the rice? Two payments? Uh,
$1,000 each. One on Thursday and one on Friday to
a finance company in Ohio, in California called password. I mean,
something like that. I said, hell no. You know what
(41:38):
I mean? They said, well, okay, basically, so they lock
the accounts and I basically now have to change, you know,
I have to go open up another account. Uh, there's
a there's a dispute process where they're going to investigate it.
It's fraud, things like that. But how does something like
this happen and how can I keep it? I never
give my password out to anybody. I change it, you know,
(42:00):
routinely I, I go online at least twice a week
to check my accounts and see what's going on. But
this one just just hit out of the blue.
S1 (42:09):
Yeah. Well, you know, hackers can get in, and it's
not necessarily because you did anything wrong. I mean, it
could be data breaches. It could be, um, you know,
it could be a phishing scam or, you know, a
weak or reused password, but it could be that, uh,
your bank or credit union got hacked and your information
(42:32):
was stolen. The key is moving forward. You're doing the
right things. I mean, update passwords regularly, set up account alerts,
don't use public Wi-Fi. Uh, you know, freeze your credit,
check your credit reports, and, um, respond quickly when they
reach out to you. Those are the keys, and you're
doing it. Hey, thanks for your call. Unfortunately, I'm out
of time. Faith and finance live as a partnership between
(42:54):
Moody Radio and Faith fi. Come back and see us tomorrow.
Bye bye.
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