June 18, 2025 • 42 mins
God’s Word contains dozens of verses about repaying debt, but they are usually from the perspective of owing money to others. But what if someone owes us money? On today's Faith & Finance Live, Rob West will talk about the process you can use to reconcile unpaid debt when someone owes you money. Then Rob will answer your calls on various financial topics.
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Transcript
Episode Transcript
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S1 (00:08):
The wicked borrow, but do not pay back. But the
righteous is generous and gives. Psalm 3721. Hi, I'm Rob West.
When someone owes you money and doesn't repay it, it
can stir up all kinds of emotions frustration, hurt, even resentment.
Whether it's a friend, family member, or fellow believer, financial
conflict can strain even the closest relationships. So how should
(00:32):
we respond when that debt goes unpaid? We'll explore that today.
And then it's on to your calls at 800, 500,
25 7000. This is faith and finance. Live. Biblical wisdom
for your financial journey. When someone owes you money, it's
easy to assume the worst. But before jumping to conclusions,
(00:53):
Scripture invites us to lead with compassion. Proverbs 1429 says,
whoever is slow to anger, has great understanding. But he
who has a hasty temper. Exalts folly. The person who
owes you money may be facing unexpected hardships, such as
a job loss, medical expenses, or other financial difficulties. Ask
(01:14):
how they're doing and if they need support or flexibility.
You might agree on partial payments or a new timeline
to find a workable solution. A compassionate approach can lead
to honest dialogue and reflect Christ's love in action. And
before you reach out, make it an intention to pray.
Ask God to give you wisdom. Soften both your hearts
(01:35):
and bring peace to the situation. Your response can be
a witness, not just a reaction. If the person is
a fellow believer and continues to avoid the issue, Jesus
gives us a process in Matthew 18. First, speak with
him privately. If that doesn't work, bring along 1 or
2 other believers. If they still refuse to acknowledge the debt,
(01:55):
a final step is to involve church leadership. The goal
here is not shame. It's restoration. You're seeking what's right
while also guarding the relationship. You want to create a
path forward, not a wall between you. In first Corinthians six,
Paul discourages believers from taking one another to court over
civil disputes. His concern is our witness. He even says,
(02:19):
why not rather be wronged? In other words, preserving unity
and love within the church is more important than getting
every dollar back. That said, Paul's teaching isn't a blanket
rule against legal action in every situation. He was talking
about everyday disputes between believers, not serious wrongdoing or criminal behavior.
If the situation involves fraud, abuse or legal injustice, Scripture
(02:43):
gives you the freedom to seek justice through legal channels.
Romans 13 affirms that civil authorities exist to uphold justice.
Legal action is sometimes necessary to protect yourselves and others,
especially when someone remains unrepentant. For instance, if you're a
business owner and non-payment threatens your livelihood, legal recourse may
(03:04):
be warranted, but even then, your heart should be aligned
with fairness, not revenge. Regardless of the outcome, whether you're
paid back or not. Jesus calls us to forgive. Mark
1125 says, whenever you stand praying, forgive if you have
anything against anyone, so that your father also who is
in heaven, may forgive your trespasses. Forgiveness doesn't mean pretending
(03:28):
the debt never existed. It means choosing not to carry bitterness.
It's about releasing control and trusting God to handle the results.
Sometimes forgiving someone who hasn't repaid you is the very
small act that draws them back to repentance. Other times,
it's simply an act of obedience that frees you from
carrying the weight of resentment. At the end of the day,
(03:50):
unpaid debt is frustrating, but it's also temporary. Relationships, character
and witness last much longer than money ever will. So
when someone owes you money, ask not only how do
I get this back, but also how can I reflect
Christ in this situation? When we learn to see this
as an opportune passion and pursue peace, we reflect the
(04:12):
generosity of a Savior who forgave us when we had
nothing to offer him in return. That perspective may not
always result in getting your money back, but it will
always honor God, and that's worth far more. If you'd
like to go deeper on this topic, we've covered it
in detail in the second issue of our quarterly magazine,
(04:32):
Faithful Steward. It's filled with biblical wisdom and practical guidance
to help you navigate financial challenges like this one with
grace and integrity. You can receive faithful steward directly in
your mailbox each quarter by becoming a faithful partner. Just
give $35 a month or $400 a year to support
our mission at faith. That's faith. Effie. We'd love for
(04:59):
you to join us in equipping more believers to live
as wise and faithful stewards. All right. Your calls are next.
The number 800, 525, 7000. That's 800, 525, 7000. This
is faith in finance. Live biblical wisdom for your financial journey.
We're just getting started. Come right back.
S2 (05:33):
The opinions offered during this program represent the personal or
professional opinions of the participants, given for informational purposes only.
Any information provided is not intended to replace advice from
a financial, medical, legal, or other professional who understands your
specific civic situation.
S1 (05:57):
Hey, thanks for joining us today on Faith in Finance Live.
I'm Rob West. Looking forward to taking your calls and
questions today as we turn the corner to tackle anything financial.
The number to call today 800 525 7000. We've got
plenty of lines open. That probably won't be the case
for long, so now's the time to call. You'll get
right through 800 525 7000. We can tackle any question
(06:20):
that's on your mind today, help you process that through
the lens of Scripture. Our goal that you'd see God
as your ultimate treasure, living as a faithful steward, seeing
money as a good gift, something that can rival our hearts.
So we have to be on our guard. But it
is to be used for our enjoyment, for us to
give generously, for us to invest purposefully. We want to
(06:41):
help you do that each day on this program. Again,
that number 805, two five 7000. We'll dive into those
questions here in just a moment. But first in the
news today. A new savings plan for kids, nicknamed Trump accounts,
is reportedly now included in the Senate version of the
one big, beautiful bill that lawmakers are wrestling with on
Capitol Hill. If passed, it could open long term investment
(07:04):
opportunities for millions of young Americans. Here's how $1,000 seed
deposit from the federal government would be placed in each
eligible child's account at birth. Children must be U.S. citizens
born between January 1st, 2024 and December 31st, 2028. To qualify,
parents can contribute up to $5,000 a year in the account.
(07:27):
Funds would be invested in diversified stock index funds and
grow tax deferred. Here's how the withdrawals would work later.
At age 18, up to half of the funds for education,
home purchase or starting a business could be withdrawn. At
age 25, the child would have full access, but for
(07:48):
those specific reasons education, home purchase, starting a business. Then
at age 30, funds in the Trump accounts could be
used for any purpose. However, withdrawals for qualified uses that
I mentioned would be taxed at long term capital gains rates,
while non-qualified uses would be taxed at ordinary income rates.
And if parents don't open the account for the new child, well,
(08:11):
the Treasury Department will open one automatically. Now, while this
plan could spark early wealth building, it's no substitute for
biblical stewardship. So alongside this, we want to be teaching
both financial literacy, you know, the dangers of debt, the
importance of working hard, living within your means, saving for
the future, and also a biblical worldview that God owns
(08:33):
it all. And we're stewards and money is a tool
right on down the line. So hopefully this is something that, um,
would be helpful to you and you would take full
advantage of. We'll keep you posted as to whether or
not this is going to see the light of day
as it works its way through the Senate. All right,
let's take your questions today. Lines are filling up, but
we've got a few for you. 800 525 7000. You
(08:57):
can call right now. Speaking of just starting out in
the stock market, I think that's where Mary wants to
go in Marion, Ohio. Go right ahead.
S3 (09:05):
Hi, Rob. Um, I'm new to the show. I'm proud
to be on here. Thank you so much for having me.
S1 (09:12):
Yeah. Of course.
S3 (09:13):
Uh, so, first off, um, thank you for accepting my call. Um,
my question is around, uh, understanding basics of the stock
market and avoiding scams.
S1 (09:25):
Yeah. Very good. Is this for you or for someone else?
S3 (09:28):
For myself.
S1 (09:30):
Okay. Yeah. Very good. Well, I want to do the
first thing I'm going to do when we're done here
is you stay on the line. I'm going to send
you a resource. It's called the Sound Mind Investing Handbook,
and it's going to really get you started with some education,
both on just the blocking and tackling the mechanics of investing,
but also from a biblical worldview. Again, it's called the
(09:50):
Sound Mind Investing Handbook. The website Sound Mind Investing would
be helpful to you as well. They have just some
great articles and resources. Again, all from a biblical perspective
in terms of investing. You know, the key is to
understand that, first of all, investing is ownership. And so
I think you want to consider not only what is
the right mix of investments, because proper investing involves diversification.
(10:16):
It's the principle we see in the book of Ecclesiastes
in God's Word, where it says, you know, don't put
all your eggs in one basket. Essentially put your things
in in seven, even to eight. And so the idea
is you don't want to be highly concentrated in any
one investment. So when you're just getting started, the way
you diversify or spread out, that risk is you own
(10:37):
lots of different companies. And so that's where a mutual fund,
which is essentially a basket of stocks or bonds will
come into play, or an exchange traded fund, which is
essentially something that trades like a stock, but again, holds
lots of different investments. Mutual funds and ETFs, as they're called,
are a great way to diversify. But the key for
(10:58):
you is to pick, you know, how much you're going
to put in either a one time investment or better yet,
maybe a systematic investment, and then open an account at
one of the discount brokerages like Charles Schwab or Fidelity.
Very low cost, and basically give you unlimited investment options.
The type of account would come down to the time horizon.
(11:18):
If this is something that you're wanting to start and
you really don't plan to touch it until retirement, then
I would suggest perhaps a Roth Roth Roth IRA. So again,
going back, you'd open that account at Schwab or Fidelity,
you'd open a Roth IRA, and if you're under 50,
you could put in up to $7,000 for the year.
If you're over 50, you could put in $8,000. And
(11:41):
you can do that any time before you file your
2025 tax return, and then you're going to need to
pick the investments. And that's where sound mind investing could help. Um,
you know, you would essentially select those ETFs or mutual
funds that are appropriate for your age and risk tolerance,
giving you ownership and companies that would grow over time.
(12:01):
That would be the goal, might pay off some income
in the form of a dividend while you're waiting, and
then eventually down the road, you could sell them after
they've appreciated. And with the Roth IRA, you wouldn't pay
tax on any of that gain or the growth that
happens between now and when you need to start accessing
the funds. The key with investing is the power of compounding.
(12:22):
That systematic investment that you make is buying shares of
a stock or a mutual fund or an ETF. And
as it grows, it's compounding. So, uh, you know, it
grows faster over time as that money is working for you,
and then you'll end up with something that's meaningful that
you can access down the road to supplement Social Security
(12:43):
in terms of avoiding scams. Um, you know, I would
just say scams are on the rise, and so we
need to be on our guard. The most common would
be related to somebody, uh, doing a phishing scam where
maybe they send you a fraudulent email trying to impersonate
a reputable company. And when you click the link and
provide your information, either your account information that they would
(13:05):
then compromise, or your personal information that they would steal
and try to open accounts in your name again, fraudulently.
That's usually the biggest risk. And so I would just
be careful, um, you know, I wouldn't click on links
in emails to provide your information unless you've navigated on
the web directly to that reputable company. I wouldn't give
out information over the phone, uh, to anybody calling, even
(13:28):
if they say they're with a government agency or the
IRS or, you know, a reputable institution, I would just say, listen,
I don't give out information for unsolicited calls. And then
if you think it might be legitimate, you call them back,
but not with the number they gave you. You get
the number independently. Um, where you it's from a trusted
source like the company or the government agency's website, you
(13:52):
call them and then if they need information, you can
provide it at that time. So hopefully that helps you.
I know if there aren't a lot at you there, Mary, uh,
I think this book will help get you pointed in
the right direction. Give you some things to think about.
So you stay on the line, get your information, and
we're going to send you the Sound Mind Investing handbook.
And I, I think it'll be a great resource for you.
(14:12):
Thanks for calling today. We appreciate it. Well, folks, we're
going to take another break when we come back. Uh,
Deirdre is waiting in Florida. Plus, perhaps your question 800
525 7000. We'll be right back. Great to have you
(14:33):
with us today on Faith and finance live here on
Moody Radio. I'm Rob West. The lines are nearly full.
Looks like we've got one line open 800 525 7000
is the number to call. Let's go to Florida and
welcome Deirdre to the broadcast. Go ahead.
S4 (14:48):
Hi. Thank you for taking my call. Um, just wanted
to get your advice regarding buying precious metals like silver
or gold coins or bars, um, for passing on to
children and grandchildren. And how would they go about selling
them or redeeming them for the monetary value after.
S1 (15:04):
Yeah. Very good. Uh, here's what I recommend, Deirdre. I
wouldn't put more than 10% of your investable assets in gold. Uh,
just because gold typically is a little more volatile, it
doesn't have as much long term performance as stocks and bonds,
and it doesn't pay any income. And to the extent
you take physical gold, which I'm not against, but it
just you've got to store it. And, you know, you
(15:27):
have dealer markups when you buy and sell it. Um,
so for that reason, I'd limit it to 10% in
terms of how to think about that 10%. I kind
of like the idea of having a 5% forever allocation,
something similar to what you're describing, where you'd buy the
physical gold, whether that's bars or coins, and then you
would hold it for the rest of your life and
(15:49):
pass it down. And then if you wanted to go
up to a full 10%, perhaps with that second 5%,
that's where you could buy like a gold ETF and
add it to your investment portfolio. And that allows you
to fairly easily if you want to lower your exposure,
you can sell that like a stock as long as
the market's open pretty easily. You don't have to store
(16:11):
it or take possession of it or anything like that.
And so that would allow you between the two, the
physical and the ETF to get up to that full 10% allocation.
If that's what you decided to do in terms of
how to think about the the physical gold. You know,
it's it's really all about in terms of protecting its
security insurance and access. So a home safe that's fireproof and, uh,
(16:35):
you know, bolted down could offer quick access. Be sure
it's hidden and that you've updated your insurance to cover
the precious metals. You could use a bank safe deposit box.
Very secure, only accessible during banking hours. But banks typically
don't insure the contents, so you would need to have
a private policy for that. And then the third option
(16:55):
depending on how much. But you know, for larger amounts
people will use private vaults or depositories that specialize in
precious metals. And, you know, they offer high security full
insurance and some even offer audited storage. So, uh, you know,
I think any of those could work for you, depending
on what you're talking about. And then I just find
(17:17):
a reputable dealer. You could, um, you know, look at
some reviews online. Um, you know, we'd be happy to
connect you with somebody if you'd like. Um, but you'd
want to buy it from a reputable dealer. You will
have a markup on the purchase, and then when they
inherit it, they could turn around and sell it the
same way. You just want to look for a reputable
dealer you know that could facilitate the sale for you.
(17:40):
Does that make sense?
S4 (17:42):
Yes. Thank you so much for your help.
S1 (17:44):
Okay. God bless you. Deidra, thanks for calling today. Uh.
Let's see. Uh, Doreen, I think I've got that right.
Is in Glen Ellyn, Illinois. Go ahead.
S5 (17:55):
Hi, Rob. I just wanted to say thank you for
taking my call. And I just had a couple of
questions regarding one with, um, monies that I have sitting
in a credit union that's not earning anything, and I.
This call will be recorded. Um, sorry. I would like
to figure out a way where I can actually put
(18:18):
it somewhere where this call is no longer being recorded,
and it will earn a little bit more than what
I'm earning now. But I don't want to do something
that's too risky. And the second thing is, I was
just trying to figure out how I could put money
up for my kids for later. Like to make sure
(18:38):
that when I'm no longer here, that they kind of
have a little padded cushion.
S1 (18:43):
Yeah. All right. Very good. A couple of questions for you.
We've got some background noise, but we'll try to make
our way through this. What's the time horizon on this
money that's in the credit union? When do you think
you might need to have access? At the earliest point.
S5 (18:57):
Well, um, it's not really a time thing. I can
put it up and it can stay there for quite
some time, because money that's separate from the money that
I'm going to be using for bills and other regular
things that I need to take care.
S1 (19:12):
All right. And how much do you have that you
could invest?
S5 (19:17):
Um, well, I was typically looking at maybe about 40,000,
maybe 50, 50, 50 tops.
S1 (19:26):
Okay. Do you have a retirement account at work or
some type of retirement asset.
S5 (19:32):
No, I do not. And I was actually looking into
getting a Roth.
S1 (19:37):
Yeah. Okay.
S5 (19:38):
Very good. IRA. Yep.
S1 (19:40):
What is your age, Deidre? Excuse me.
S5 (19:43):
I'm. I'm 58.
S1 (19:46):
58. Okay. And you said you don't want to take
a lot of risks. Tell me about that. Are you
wanting to put it at the risk of the stock market,
even with a fairly conservative portfolio, or are you wanting more?
Something more guaranteed?
S5 (20:00):
Um, something more guaranteed.
S1 (20:03):
Okay. Yeah. So really, the, you know, the only options,
if you really want more of a guarantee and you're
not wanting to take market risk, um, would be either
to leave it where you're at in the credit union
and like, a high yield savings. Um, second option would
be to look at a CD. Either of those could
be offered where you're at. You could also look at
our friends at Christian Community Credit Union. Just go to
(20:24):
Faith banking to learn more. They're actually offering some really
nice interest rates right now, and the potential for up
to a $400 bonus just for Faith fi listeners if
you use the word Faith fi, but that could be
an option. You're in a very safe either savings account
or CD certificate of deposit, and those would essentially be
(20:45):
nothing's risk free, but they're very close to it. Um,
beyond that, you could buy some U.S. Treasury bonds. And,
you know, although the price on those can move around
if you hold them to maturity, whether you buy a,
you know, a one year or a ten year or
something longer, you know, you don't have to worry about
that because the US Treasury is guaranteeing the money. And
(21:06):
so you're going to get it back, plus all the interest. Um,
and you know, that could it's paying right now about 4%
a little higher. Those would be the options that I
would consider. Um, you know, you could do inside a
Roth IRA. Um, you know, you could buy treasuries. Um,
and so that would be an option there. You typically
wouldn't have a CD inside a Roth, but you know,
(21:29):
it is possible. And then you could use money market
as well. Um, so I'd probably consider staying with your
bank and looking at, uh, savings or a CD if
you want to open a Roth IRA. You could look
at Schwab or Fidelity, and you're probably wanting to stay
in the Treasury bonds or certificates of deposit. If you
want to stay on the most conservative end of the spectrum.
(21:52):
Hope that helps, Jeremy. Thanks for your call. We'll be
right back. So glad to have you with us today
on Faith and finance live here on Moody Radio. I'm
Rob West, taking your calls and questions. I've got two lines.
Open 800 525 7000. You can call right now. Let's
(22:16):
go to, uh, Birmingham, Alabama. Hi, David. Go ahead sir.
S6 (22:20):
Hey, Rob, thank you very much for taking my call. Uh,
my question has to do with I'm 62 years old.
I'm still working. I don't plan to retire until 65.
Or maybe 67. Our hospital has just started offering a
Roth 403 B plan. I was just kind of curious
at my age, would that be a. I would really
like to do that, to have a legacy for my son,
(22:41):
who's 25. Um, I was just wondering, would that be
a good idea at my age to begin a Roth
403 B basically at zero and start going now?
S1 (22:52):
Yeah, yeah. Very good. Uh, it's a good question. It
really comes down to, uh, you know, you've still got
some strong earnings years left if you're going to work
until full retirement age. If your income is high traditional,
the traditional 403 B would obviously help to reduce today's taxes. If,
though you can afford to pay the taxes now, the
(23:14):
Roth gives you more flexibility later because you don't have
to take it out with a required minimum. So, you know,
generally speaking, if you're in a high tax bracket now
and expect to be in a lower bracket in retirement.
The traditional gives you that tax break today and lets
you defer taxes until later. Uh, if you're in that
(23:35):
moderate or low tax bracket now, then the Roth may
be better because your money grows tax free and you'll
pay no taxes in withdrawals on withdrawals during retirement. Um,
the other approach to consider is, uh, there was a
study done by some University of Arizona researchers where they
were looking at whether, you know, what was the right
(23:56):
mix between traditional and Roth. And they were looking at
this idea of tax rates changing in the future and
just that being an unknown. And they studied this and
came up with a rule of thumb that in their
work produced near ideal results. And that rule of thumb
is simply to add 20 to your age and put
(24:17):
that percentage in a traditional. So in your case, that
would be call it 80% with the rest going into wrath. Um,
and they say that the common advice that older workers
should be funnelling most of their contributions into traditional accounts
doesn't consider the risks, uh, of of tax rates in
(24:37):
the future and that some of, uh, you know, investing
some of those contributions. In your case, it would be
a fairly small amount, uh, into Roth eliminates some of
that risk down the road. So, you know, I think
I would probably skew toward the traditional even if you
decided if you're at the peak of your earning years,
you just don't even want to bother with the hassle
(24:58):
of opening the Roth and just stick with the traditional.
But if you wanted to start to divert some of
it in their case, in the case of these University
of Arizona researchers, perhaps as much as 20 to 25%, uh,
you know, you certainly could do that. And then you'd
have both buckets to pull from down the road, uh,
you know, based on which one was better at the time.
Does that make sense?
S6 (25:18):
Right. It does. I appreciate that, thank you very much.
S1 (25:21):
All right. Thanks, David. We appreciate your call. Uh. Let's see. Bolingbrook, Illinois. Hi, Joanna.
Go ahead.
S7 (25:28):
Hi. Thank you so much for taking my call. Um, yes.
I just have, like, a couple of questions because, I
don't know, um, if this is the best time to
sell my house. I live in a a townhome. Um,
I'm 46 years old, and, um, if I put that
on the market, um, where should, uh, what is the
(25:50):
best investment for the equity that I'm getting? Because I'm
planning yet? Um, just to get an apartment for now
after I sell it.
S1 (26:00):
Yeah, yeah, I think the only question, Joanna, is just,
you know, whether you want to stay as a renter
long term. Because if you if you really want to
own something and get the appreciation that comes with it and,
and just the ownership where you can pay it off
over time and you're not continuing the cycle of renting,
then I wouldn't want you to invest that money only
(26:22):
to decide, let's say, in 2 or 3 or four years,
that you want to buy something. And then let's say
the market was down because we're in a recession. I
don't know whether we will be or not. Nobody does.
But the market or the economy works in cycles, and
we're kind of long overdue for a recession. So let's
just take the worst case scenario. Let's say three years
from now, the market's down 20 or 30%. Your investment,
(26:45):
the proceeds of your townhome sale, you know, that you
invested are down 20 or 30%, and you're wanting to
buy something. You know, you're going to have to sell
it at a loss. And now you don't have as
much to work with. And so I think you need
to kind of play this out a little bit longer
term and think about your long term housing situation and
(27:06):
make some decisions before you were to take this money
and invest it, because I wouldn't want you to invest
this money unless you felt like you had at least
a ten year time horizon on it. Does that make sense?
S7 (27:19):
Yeah. Yeah. So it's probably like, uh, I can stay
a little longer maybe. Or.
S1 (27:28):
Yeah. Or what about. I mean, what is what is
causing you to feel like you need to sell this
and rent? Is it, um, what's driving that decision?
S7 (27:37):
Right. Uh. Good question. Yeah. Well, I'm nearly. I feel
like I'm 46 already, and I don't have much, um,
savings on my own, and and, um, I feel like
I needed this so I can start investing more and
then and then put away some money for the emergency fund.
(28:02):
And with the situation with the townhomes, the association, um,
fee is getting, um, going up and up and up
almost every quarterly. Um, it's just getting tired of, uh. Uh,
some expenses that I have in the townhomes. Yeah, yeah.
S1 (28:22):
Okay, well, it may be that you need to really
consider whether this is the right property for you. I
totally get that. And, you know, with townhomes, you do
have some of these common area assessments and, you know,
homeowners type expenses that are out of your control. Um,
you know, it may be that you replace this with
a small starter home that doesn't have that, um, or,
(28:47):
you know, maybe you sell it and rent for a
period of time, but you don't necessarily invest it. Um,
you just put it away, earn some interest on it,
continue to save until you can buy something that fits
your budget, because the goal would be and this would
be true whether you're renting or you own, your goal
would be to get your monthly payment for your housing.
(29:09):
In the case of the rent, it would just be
the rent. In the case of the mortgage, it would
be principal interest, taxes and insurance. You'd want the goal
to be that to be no more than 25% of
your take home pay, and that's going to give you
enough left over so that you can not only cover
your bills, put food on the table, gas in the car,
pay the utilities and, you know, have some discretionary money
(29:31):
for clothes and entertainment and travel, things like that. But
you'd also have some surplus, something left at the end
of the month to accomplish your goals, beginning with building
up and fully funding over time, your emergency fund of
3 to 6 months expenses, and then maybe moving beyond
that into putting some money into a retirement account, either
at work or on your own, and something like a
(29:53):
Roth IRA. Um, but I don't know that, uh, if
you ultimately want to be a homeowner, it makes sense
for you to take the proceeds of your townhome sale,
even if it's the right thing to sell it, because
it continues. You know, it's it's too much expense for
your budget. I don't know that it makes sense to
invest that just because, you know, we may want to
(30:14):
use that for another purchase down the road, and if so,
we need to make sure the time horizon is right
on those investments. Does that make sense?
S7 (30:23):
Right, right. Yeah, yeah. Thank you. Thank you so much.
S8 (30:26):
All right.
S1 (30:27):
Yeah. So maybe the answer here is let's evaluate whether
or not this townhome is the right thing for you.
And if it's getting too costly, maybe you're absolutely right.
Let's sell it. But I think I'd take whatever equity
you have, put it in savings, maybe an online savings
account at an online bank, you could get 4% a
year on it. And let's then get into a rental
(30:47):
that actually fits your budget so you can save for
your next purchase and fund retirement. Thanks for your call.
We'll be right back. Great to have you with us
today on Faith and Finance Live. I'm Rob West. Let's
go right back to the phones here in the final segment.
We'll get to as many calls as we can. Indiana
(31:09):
is where we're headed next. Benjamin. Go ahead.
S9 (31:12):
Yeah, I have a loan in my name for a
friend of mine for home improvement. We're not able to
make the payments. My mom works in taxes, and I'm
wondering about debt forgiveness for the loan. Uh.
S1 (31:26):
Yeah. Uh, and so what are you looking to essentially
try to to just consider this bad debt?
S9 (31:33):
I'm trying to get out of it, if possible. I
just don't see myself paying for, uh, nine more years.
S1 (31:40):
Yeah. Okay. Yeah. I think the challenge is you obligated yourself.
Did you? You took this out in your name, is
that right?
S9 (31:47):
Correct.
S1 (31:48):
Okay. Um, yeah. I mean, so from the let's set
the taxes aside for a second. I mean, you know,
in terms of you taking out a loan in your
name for a friend, obviously the lender is going to
look to you for repayment on this, whether or not
your friend is able to make the payment, the extent
to which you don't pay it, uh, you know, the
they're going to, you know, that's going to reflect on
(32:10):
you poorly in terms of your commitment to do that.
Not only that, but also likely to trash your credit
in the process. Um, you know, I think, you know,
we started the program talking about this today. How do
you respond as a believer when somebody owes you money? And,
you know, that certainly applies here? I think you want to,
you know, come in initially with understanding, uh, with good communication.
(32:33):
Let them know that, you know, remind them of the agreement,
let them know that, uh, you know, find out if
they have a repayment plan in mind, offer potential solutions.
Maybe they can stretch it out and pay a little
bit less each month in a way that would fit
their budget. Um, you would obviously have to bear the
full amount, but anything you can do to recoup, recoup,
even some of it is going to help, you know, you, uh,
(32:57):
move this toward ultimately being paid back. If they won't
do it, then obviously God's Word, if this is a believer,
offers a a model for how you could approach this, uh,
in Matthew 18, in terms of getting the local church
involved in terms of just from a practical standpoint, um,
you know, if, uh, if you just come to the
conclusion they're not going to pay it and you don't
(33:18):
want to pursue it any longer, then, you know, you would, um,
you know, just probably have to pay it off yourself,
consider it a gift or perhaps a painful lesson, uh,
on on this situation and absorb that yourself from a
tax standpoint. Um, you know, if you loan someone money,
which is essentially what you've done, they haven't paid you back,
(33:38):
you can claim it as a non-business bad debt on
your taxes. You'd want to talk to your CPA about that,
because there is some strict rules that the IRS requires
with regard to clear evidence that it was a loan
and you tried to collect. And so that's why you'd
want to get a CPA involved. But I think there's
kind of two sides of this. Number one, how do
you want to navigate it relationally? And in terms of
(34:02):
whether you want to try to work with the person
to begin to, you know, get paid back, even if
it's over a longer payback period with clear communication and, and, um,
you know, real forthright conversation. And then the other side
is whether you're ready, willing and able to step in
and pay it off so it doesn't come back to
harm you. And then are there any potential tax implications
(34:24):
to you? You know, recouping some of this by way of, uh,
of a bad debt that you could claim on your taxes?
Does that make sense?
S9 (34:33):
Yes it does. Now, my mom's involved with taxes. So
she told me that there's a way to get debt forgiveness.
She sounds pretty sure about that. But we don't talk
about it too much because the payments were being made.
We have not missed a payment in a year and
a half. But the girl I've paid the last five months,
and she paid the other eight months prior to the
(34:54):
last five months. Um, but, you know, she lost her job,
she started a new job. And, um, you know, I've
been paying it, but like I said, my mom works
in taxes and mentioned there's a way for debt forgiveness.
Whether she's done this before. Some of the clients I'm
not sure. But she mentioned that maybe an option.
S1 (35:12):
Yeah, that's that's not something that's going to be readily
available to you. I mean, you know, you could go
the debt settlement route. The problem is that depending on,
you know, if this is a what type of loan
is this? It's just just like a signature loan from
a bank or what is it, a home?
S9 (35:28):
Home improvement for a furnace and air conditioner.
S1 (35:31):
Okay. Yeah. So you could contact the lender and let
them know the situation and tell them you want to
try to negotiate a payoff. Usually they're going to make
you get past due, and that's going to trash your
credit in the meantime. And then the forgiven amount is taxable. Uh,
student loans offer forgiveness through the student loan public service
loan forgiveness program. But this is not a government student loan. Uh,
(35:52):
medical debt can sometimes be negotiated down. Um, and mortgage debt.
Same thing through a modification, but that's rare. So I
don't think you're going to be able to find any
forgiveness options other than you just you stop paying. But
I would question that just with regard to, you know,
the commitment you made and the obligation you have to
(36:12):
pay it by way of you taking out this loan,
whether or not you know, you think that was a
good idea at this point or not. It's that's in
the past, and there's not really going to be any
forgiveness options available to you other than if this gets
severely past due. The lender may be willing to try
to negotiate a settlement, but that's after there's probably been
harm imposed on you through your credit report. So the
(36:35):
only thing that would then be available is if you
pay it off, consider it a bad debt and can
prove that to the IRS. Then there may be some
tax advantages for you, so hopefully that helps you. Benjamin,
I know this is not a great situation, but uh,
pray about it. Ask the Lord to give you wisdom. And, uh,
we appreciate your call today. Thanks for being on the program. Uh,
let's go to South Florida. Joanne. Go ahead.
S10 (36:57):
Yes. Hi, Rob. I just wanted to tell you and
your team. Thank you, thank you, thank you a million.
Thanks for the advice, for the information that you give.
It is absolutely freeing. If we had to go to
an outside advisor for this, I mean, we could not.
(37:18):
Most of us I think are just speaking could probably
not afford it. And the only regret that I have
is that I didn't start sooner. And I would implore. Yes,
and you've spoken to that, and you speak to that.
Anyone out there who's on the fence in terms of investing, please,
(37:39):
$10 a week, you know, ten, $12, that's about $50
a month. Just go to a brokerage, open it. I mean,
I'm with fidelity now. I have no interest with them.
So I'm not, you know. Sure. But it's they will
help you. They're so eager to help you, whether it's
$1 million or 500. And they will walk you through
(38:02):
the you know, the process, please. Because when I look
back and I see how much money that I have
left on the table, you know.
S1 (38:12):
Yeah.
S10 (38:12):
Uh, for not maybe starting when you're 40 or 50
and I would say, just sit down. Sit down with your,
your bills. Put pen and paper. I'm old. So put it,
you know, pen and paper and just list your monthly bills.
It sounds so trite. We say it all the time,
(38:32):
but do it for me. I need to be organized,
and I need it to kind of also do it
a little bit of my way in that I need
separate accounts for separate things. You know. Yes, ma'am. So
this whatever works for you? Yes. The information is out there,
but you have to let it work for you. You know,
(38:54):
so maybe put your bills in one account, put your
the your other spending food. you know your variables in
another account and just do it 50. When I look back,
I said, oh my God, you know, $50 a month.
I know for some of us it may be a
lot and I'm still tithing. I'm still able to give
to the children's, you know, fund. But thank you so much,
(39:18):
Rob your, your you and your team. What you've done,
it's just priceless. Invaluable. And I want to thank you.
The freedom that I have now and the stress, you know,
off the shoulders with the money, um, you know, put
some money in that in your, in your emergency account
(39:38):
and leave it there and then maybe start paying off
the credit cards if you have that. Because maybe if
you do it the opposite that's recommended and something happens,
you have to go back to the credit card. But again,
you know, adapt it to you, you know, to your
circumstance and what makes you comfortable. But please, you, your children.
(39:58):
Just let them start early. Because we say money. The
love of money is the root of all evil. But
the lack of money is just horrendous.
S1 (40:09):
Well, Joanne, that's incredible. First of all, thank you. Thank
you for your kind remarks. Um. So great. Grateful for
what you just shared. Incredibly encouraging to me. I appreciate
that you called out the team because you're exactly right.
This is certainly not about me. Uh, and I couldn't
do this without an amazing team around me. And so
thank you for saying that. I appreciate you saying you've
(40:32):
got to make it work for you. And so you've
got to find the right rhythms and mechanics for you.
It was having those separate accounts. I love that one
for your bills and one for other savings vehicles. I
love that you said just start somewhere and start early.
Even if it's ten, 20, $50 a month, start somewhere,
put it away, let it grow and you will be
(40:53):
glad you did. Your future self will thank you. I
love that you're a generous giver and you've made a
commitment to that along the way. So, Joanne, that was
a blessing and an encouragement to me. Thank you for
sharing that. May the Lord bless you. And next time
I go on vacation, you might be hosting the program. Joanne.
That was amazing. Listen, the Lord bless you and stay
on the line. I want to have my team send
(41:13):
you a copy of our most recent edition of our
Faithful Steward Magazine, just as our way of saying thanks
for being a big fan and of the program, and
hopefully some of the articles in it will be an
encouragement to you. God bless you. Well, Margaret, I apologize.
We're out of time today. I think just seeing your
question here about, um, you know, what, if I started somewhere,
(41:35):
I've got limited resources. I'm on SSDI, your daughter manages
your money, and after paying your bills, there's $300 left over.
And you're saying, should I take $100 a month and
invest that? And given what we just heard from Joanne,
I think that was a perfect testimony for you. Hopefully
that was an encouragement to you, Margaret. Yes. Start somewhere.
(41:56):
If you've got money built up in an emergency fund
that your daughter is handling, so that's covered, then? Yeah.
If you've got 300 totally discretionary unallocated, and you could
take 100 a month and put it away, you know,
whether that's in a high yield savings account or in
a high quality mutual fund at Fidelity or Schwab. I
(42:17):
know Joanne said she uses fidelity and they've been very helpful.
That's great. Open a brokerage account, get it invested, let
it grow. Make a systematic contribution. You will be glad
you did. Margaret. We're going to send you a copy
of the Sound Mind Investing Handbook. So you stay on
the line. Our team will mail that to you as
our gift. I apologize we didn't get you on the
air today, but I hope Joanne's testimony and what I
(42:39):
just shared is helpful to you. Hey, a big thanks
to that team. Joanne was talking about Amy, Jim, Omar,
Tara and everybody here at Faith by Faith and Finance
lives a partnership between Moody Radio and Faith fi. We'll
see you tomorrow. Bye bye.
The wicked borrow, but do not pay back. But the
righteous is generous and gives. Psalm 3721. Hi, I'm Rob West.
When someone owes you money and doesn't repay it, it
can stir up all kinds of emotions frustration, hurt, even resentment.
Whether it's a friend, family member, or fellow believer, financial
conflict can strain even the closest relationships. So how should
(00:32):
we respond when that debt goes unpaid? We'll explore that today.
And then it's on to your calls at 800, 500,
25 7000. This is faith and finance. Live. Biblical wisdom
for your financial journey. When someone owes you money, it's
easy to assume the worst. But before jumping to conclusions,
(00:53):
Scripture invites us to lead with compassion. Proverbs 1429 says,
whoever is slow to anger, has great understanding. But he
who has a hasty temper. Exalts folly. The person who
owes you money may be facing unexpected hardships, such as
a job loss, medical expenses, or other financial difficulties. Ask
(01:14):
how they're doing and if they need support or flexibility.
You might agree on partial payments or a new timeline
to find a workable solution. A compassionate approach can lead
to honest dialogue and reflect Christ's love in action. And
before you reach out, make it an intention to pray.
Ask God to give you wisdom. Soften both your hearts
(01:35):
and bring peace to the situation. Your response can be
a witness, not just a reaction. If the person is
a fellow believer and continues to avoid the issue, Jesus
gives us a process in Matthew 18. First, speak with
him privately. If that doesn't work, bring along 1 or
2 other believers. If they still refuse to acknowledge the debt,
(01:55):
a final step is to involve church leadership. The goal
here is not shame. It's restoration. You're seeking what's right
while also guarding the relationship. You want to create a
path forward, not a wall between you. In first Corinthians six,
Paul discourages believers from taking one another to court over
civil disputes. His concern is our witness. He even says,
(02:19):
why not rather be wronged? In other words, preserving unity
and love within the church is more important than getting
every dollar back. That said, Paul's teaching isn't a blanket
rule against legal action in every situation. He was talking
about everyday disputes between believers, not serious wrongdoing or criminal behavior.
If the situation involves fraud, abuse or legal injustice, Scripture
(02:43):
gives you the freedom to seek justice through legal channels.
Romans 13 affirms that civil authorities exist to uphold justice.
Legal action is sometimes necessary to protect yourselves and others,
especially when someone remains unrepentant. For instance, if you're a
business owner and non-payment threatens your livelihood, legal recourse may
(03:04):
be warranted, but even then, your heart should be aligned
with fairness, not revenge. Regardless of the outcome, whether you're
paid back or not. Jesus calls us to forgive. Mark
1125 says, whenever you stand praying, forgive if you have
anything against anyone, so that your father also who is
in heaven, may forgive your trespasses. Forgiveness doesn't mean pretending
(03:28):
the debt never existed. It means choosing not to carry bitterness.
It's about releasing control and trusting God to handle the results.
Sometimes forgiving someone who hasn't repaid you is the very
small act that draws them back to repentance. Other times,
it's simply an act of obedience that frees you from
carrying the weight of resentment. At the end of the day,
(03:50):
unpaid debt is frustrating, but it's also temporary. Relationships, character
and witness last much longer than money ever will. So
when someone owes you money, ask not only how do
I get this back, but also how can I reflect
Christ in this situation? When we learn to see this
as an opportune passion and pursue peace, we reflect the
(04:12):
generosity of a Savior who forgave us when we had
nothing to offer him in return. That perspective may not
always result in getting your money back, but it will
always honor God, and that's worth far more. If you'd
like to go deeper on this topic, we've covered it
in detail in the second issue of our quarterly magazine,
(04:32):
Faithful Steward. It's filled with biblical wisdom and practical guidance
to help you navigate financial challenges like this one with
grace and integrity. You can receive faithful steward directly in
your mailbox each quarter by becoming a faithful partner. Just
give $35 a month or $400 a year to support
our mission at faith. That's faith. Effie. We'd love for
(04:59):
you to join us in equipping more believers to live
as wise and faithful stewards. All right. Your calls are next.
The number 800, 525, 7000. That's 800, 525, 7000. This
is faith in finance. Live biblical wisdom for your financial journey.
We're just getting started. Come right back.
S2 (05:33):
The opinions offered during this program represent the personal or
professional opinions of the participants, given for informational purposes only.
Any information provided is not intended to replace advice from
a financial, medical, legal, or other professional who understands your
specific civic situation.
S1 (05:57):
Hey, thanks for joining us today on Faith in Finance Live.
I'm Rob West. Looking forward to taking your calls and
questions today as we turn the corner to tackle anything financial.
The number to call today 800 525 7000. We've got
plenty of lines open. That probably won't be the case
for long, so now's the time to call. You'll get
right through 800 525 7000. We can tackle any question
(06:20):
that's on your mind today, help you process that through
the lens of Scripture. Our goal that you'd see God
as your ultimate treasure, living as a faithful steward, seeing
money as a good gift, something that can rival our hearts.
So we have to be on our guard. But it
is to be used for our enjoyment, for us to
give generously, for us to invest purposefully. We want to
(06:41):
help you do that each day on this program. Again,
that number 805, two five 7000. We'll dive into those
questions here in just a moment. But first in the
news today. A new savings plan for kids, nicknamed Trump accounts,
is reportedly now included in the Senate version of the
one big, beautiful bill that lawmakers are wrestling with on
Capitol Hill. If passed, it could open long term investment
(07:04):
opportunities for millions of young Americans. Here's how $1,000 seed
deposit from the federal government would be placed in each
eligible child's account at birth. Children must be U.S. citizens
born between January 1st, 2024 and December 31st, 2028. To qualify,
parents can contribute up to $5,000 a year in the account.
(07:27):
Funds would be invested in diversified stock index funds and
grow tax deferred. Here's how the withdrawals would work later.
At age 18, up to half of the funds for education,
home purchase or starting a business could be withdrawn. At
age 25, the child would have full access, but for
(07:48):
those specific reasons education, home purchase, starting a business. Then
at age 30, funds in the Trump accounts could be
used for any purpose. However, withdrawals for qualified uses that
I mentioned would be taxed at long term capital gains rates,
while non-qualified uses would be taxed at ordinary income rates.
And if parents don't open the account for the new child, well,
(08:11):
the Treasury Department will open one automatically. Now, while this
plan could spark early wealth building, it's no substitute for
biblical stewardship. So alongside this, we want to be teaching
both financial literacy, you know, the dangers of debt, the
importance of working hard, living within your means, saving for
the future, and also a biblical worldview that God owns
(08:33):
it all. And we're stewards and money is a tool
right on down the line. So hopefully this is something that, um,
would be helpful to you and you would take full
advantage of. We'll keep you posted as to whether or
not this is going to see the light of day
as it works its way through the Senate. All right,
let's take your questions today. Lines are filling up, but
we've got a few for you. 800 525 7000. You
(08:57):
can call right now. Speaking of just starting out in
the stock market, I think that's where Mary wants to
go in Marion, Ohio. Go right ahead.
S3 (09:05):
Hi, Rob. Um, I'm new to the show. I'm proud
to be on here. Thank you so much for having me.
S1 (09:12):
Yeah. Of course.
S3 (09:13):
Uh, so, first off, um, thank you for accepting my call. Um,
my question is around, uh, understanding basics of the stock
market and avoiding scams.
S1 (09:25):
Yeah. Very good. Is this for you or for someone else?
S3 (09:28):
For myself.
S1 (09:30):
Okay. Yeah. Very good. Well, I want to do the
first thing I'm going to do when we're done here
is you stay on the line. I'm going to send
you a resource. It's called the Sound Mind Investing Handbook,
and it's going to really get you started with some education,
both on just the blocking and tackling the mechanics of investing,
but also from a biblical worldview. Again, it's called the
(09:50):
Sound Mind Investing Handbook. The website Sound Mind Investing would
be helpful to you as well. They have just some
great articles and resources. Again, all from a biblical perspective
in terms of investing. You know, the key is to
understand that, first of all, investing is ownership. And so
I think you want to consider not only what is
the right mix of investments, because proper investing involves diversification.
(10:16):
It's the principle we see in the book of Ecclesiastes
in God's Word, where it says, you know, don't put
all your eggs in one basket. Essentially put your things
in in seven, even to eight. And so the idea
is you don't want to be highly concentrated in any
one investment. So when you're just getting started, the way
you diversify or spread out, that risk is you own
(10:37):
lots of different companies. And so that's where a mutual fund,
which is essentially a basket of stocks or bonds will
come into play, or an exchange traded fund, which is
essentially something that trades like a stock, but again, holds
lots of different investments. Mutual funds and ETFs, as they're called,
are a great way to diversify. But the key for
(10:58):
you is to pick, you know, how much you're going
to put in either a one time investment or better yet,
maybe a systematic investment, and then open an account at
one of the discount brokerages like Charles Schwab or Fidelity.
Very low cost, and basically give you unlimited investment options.
The type of account would come down to the time horizon.
(11:18):
If this is something that you're wanting to start and
you really don't plan to touch it until retirement, then
I would suggest perhaps a Roth Roth Roth IRA. So again,
going back, you'd open that account at Schwab or Fidelity,
you'd open a Roth IRA, and if you're under 50,
you could put in up to $7,000 for the year.
If you're over 50, you could put in $8,000. And
(11:41):
you can do that any time before you file your
2025 tax return, and then you're going to need to
pick the investments. And that's where sound mind investing could help. Um,
you know, you would essentially select those ETFs or mutual
funds that are appropriate for your age and risk tolerance,
giving you ownership and companies that would grow over time.
(12:01):
That would be the goal, might pay off some income
in the form of a dividend while you're waiting, and
then eventually down the road, you could sell them after
they've appreciated. And with the Roth IRA, you wouldn't pay
tax on any of that gain or the growth that
happens between now and when you need to start accessing
the funds. The key with investing is the power of compounding.
(12:22):
That systematic investment that you make is buying shares of
a stock or a mutual fund or an ETF. And
as it grows, it's compounding. So, uh, you know, it
grows faster over time as that money is working for you,
and then you'll end up with something that's meaningful that
you can access down the road to supplement Social Security
(12:43):
in terms of avoiding scams. Um, you know, I would
just say scams are on the rise, and so we
need to be on our guard. The most common would
be related to somebody, uh, doing a phishing scam where
maybe they send you a fraudulent email trying to impersonate
a reputable company. And when you click the link and
provide your information, either your account information that they would
(13:05):
then compromise, or your personal information that they would steal
and try to open accounts in your name again, fraudulently.
That's usually the biggest risk. And so I would just
be careful, um, you know, I wouldn't click on links
in emails to provide your information unless you've navigated on
the web directly to that reputable company. I wouldn't give
out information over the phone, uh, to anybody calling, even
(13:28):
if they say they're with a government agency or the
IRS or, you know, a reputable institution, I would just say, listen,
I don't give out information for unsolicited calls. And then
if you think it might be legitimate, you call them back,
but not with the number they gave you. You get
the number independently. Um, where you it's from a trusted
source like the company or the government agency's website, you
(13:52):
call them and then if they need information, you can
provide it at that time. So hopefully that helps you.
I know if there aren't a lot at you there, Mary, uh,
I think this book will help get you pointed in
the right direction. Give you some things to think about.
So you stay on the line, get your information, and
we're going to send you the Sound Mind Investing handbook.
And I, I think it'll be a great resource for you.
(14:12):
Thanks for calling today. We appreciate it. Well, folks, we're
going to take another break when we come back. Uh,
Deirdre is waiting in Florida. Plus, perhaps your question 800
525 7000. We'll be right back. Great to have you
(14:33):
with us today on Faith and finance live here on
Moody Radio. I'm Rob West. The lines are nearly full.
Looks like we've got one line open 800 525 7000
is the number to call. Let's go to Florida and
welcome Deirdre to the broadcast. Go ahead.
S4 (14:48):
Hi. Thank you for taking my call. Um, just wanted
to get your advice regarding buying precious metals like silver
or gold coins or bars, um, for passing on to
children and grandchildren. And how would they go about selling
them or redeeming them for the monetary value after.
S1 (15:04):
Yeah. Very good. Uh, here's what I recommend, Deirdre. I
wouldn't put more than 10% of your investable assets in gold. Uh,
just because gold typically is a little more volatile, it
doesn't have as much long term performance as stocks and bonds,
and it doesn't pay any income. And to the extent
you take physical gold, which I'm not against, but it
just you've got to store it. And, you know, you
(15:27):
have dealer markups when you buy and sell it. Um,
so for that reason, I'd limit it to 10% in
terms of how to think about that 10%. I kind
of like the idea of having a 5% forever allocation,
something similar to what you're describing, where you'd buy the
physical gold, whether that's bars or coins, and then you
would hold it for the rest of your life and
(15:49):
pass it down. And then if you wanted to go
up to a full 10%, perhaps with that second 5%,
that's where you could buy like a gold ETF and
add it to your investment portfolio. And that allows you
to fairly easily if you want to lower your exposure,
you can sell that like a stock as long as
the market's open pretty easily. You don't have to store
(16:11):
it or take possession of it or anything like that.
And so that would allow you between the two, the
physical and the ETF to get up to that full 10% allocation.
If that's what you decided to do in terms of
how to think about the the physical gold. You know,
it's it's really all about in terms of protecting its
security insurance and access. So a home safe that's fireproof and, uh,
(16:35):
you know, bolted down could offer quick access. Be sure
it's hidden and that you've updated your insurance to cover
the precious metals. You could use a bank safe deposit box.
Very secure, only accessible during banking hours. But banks typically
don't insure the contents, so you would need to have
a private policy for that. And then the third option
(16:55):
depending on how much. But you know, for larger amounts
people will use private vaults or depositories that specialize in
precious metals. And, you know, they offer high security full
insurance and some even offer audited storage. So, uh, you know,
I think any of those could work for you, depending
on what you're talking about. And then I just find
(17:17):
a reputable dealer. You could, um, you know, look at
some reviews online. Um, you know, we'd be happy to
connect you with somebody if you'd like. Um, but you'd
want to buy it from a reputable dealer. You will
have a markup on the purchase, and then when they
inherit it, they could turn around and sell it the
same way. You just want to look for a reputable
dealer you know that could facilitate the sale for you.
(17:40):
Does that make sense?
S4 (17:42):
Yes. Thank you so much for your help.
S1 (17:44):
Okay. God bless you. Deidra, thanks for calling today. Uh.
Let's see. Uh, Doreen, I think I've got that right.
Is in Glen Ellyn, Illinois. Go ahead.
S5 (17:55):
Hi, Rob. I just wanted to say thank you for
taking my call. And I just had a couple of
questions regarding one with, um, monies that I have sitting
in a credit union that's not earning anything, and I.
This call will be recorded. Um, sorry. I would like
to figure out a way where I can actually put
(18:18):
it somewhere where this call is no longer being recorded,
and it will earn a little bit more than what
I'm earning now. But I don't want to do something
that's too risky. And the second thing is, I was
just trying to figure out how I could put money
up for my kids for later. Like to make sure
(18:38):
that when I'm no longer here, that they kind of
have a little padded cushion.
S1 (18:43):
Yeah. All right. Very good. A couple of questions for you.
We've got some background noise, but we'll try to make
our way through this. What's the time horizon on this
money that's in the credit union? When do you think
you might need to have access? At the earliest point.
S5 (18:57):
Well, um, it's not really a time thing. I can
put it up and it can stay there for quite
some time, because money that's separate from the money that
I'm going to be using for bills and other regular
things that I need to take care.
S1 (19:12):
All right. And how much do you have that you
could invest?
S5 (19:17):
Um, well, I was typically looking at maybe about 40,000,
maybe 50, 50, 50 tops.
S1 (19:26):
Okay. Do you have a retirement account at work or
some type of retirement asset.
S5 (19:32):
No, I do not. And I was actually looking into
getting a Roth.
S1 (19:37):
Yeah. Okay.
S5 (19:38):
Very good. IRA. Yep.
S1 (19:40):
What is your age, Deidre? Excuse me.
S5 (19:43):
I'm. I'm 58.
S1 (19:46):
58. Okay. And you said you don't want to take
a lot of risks. Tell me about that. Are you
wanting to put it at the risk of the stock market,
even with a fairly conservative portfolio, or are you wanting more?
Something more guaranteed?
S5 (20:00):
Um, something more guaranteed.
S1 (20:03):
Okay. Yeah. So really, the, you know, the only options,
if you really want more of a guarantee and you're
not wanting to take market risk, um, would be either
to leave it where you're at in the credit union
and like, a high yield savings. Um, second option would
be to look at a CD. Either of those could
be offered where you're at. You could also look at
our friends at Christian Community Credit Union. Just go to
(20:24):
Faith banking to learn more. They're actually offering some really
nice interest rates right now, and the potential for up
to a $400 bonus just for Faith fi listeners if
you use the word Faith fi, but that could be
an option. You're in a very safe either savings account
or CD certificate of deposit, and those would essentially be
(20:45):
nothing's risk free, but they're very close to it. Um,
beyond that, you could buy some U.S. Treasury bonds. And,
you know, although the price on those can move around
if you hold them to maturity, whether you buy a,
you know, a one year or a ten year or
something longer, you know, you don't have to worry about
that because the US Treasury is guaranteeing the money. And
(21:06):
so you're going to get it back, plus all the interest. Um,
and you know, that could it's paying right now about 4%
a little higher. Those would be the options that I
would consider. Um, you know, you could do inside a
Roth IRA. Um, you know, you could buy treasuries. Um,
and so that would be an option there. You typically
wouldn't have a CD inside a Roth, but you know,
(21:29):
it is possible. And then you could use money market
as well. Um, so I'd probably consider staying with your
bank and looking at, uh, savings or a CD if
you want to open a Roth IRA. You could look
at Schwab or Fidelity, and you're probably wanting to stay
in the Treasury bonds or certificates of deposit. If you
want to stay on the most conservative end of the spectrum.
(21:52):
Hope that helps, Jeremy. Thanks for your call. We'll be
right back. So glad to have you with us today
on Faith and finance live here on Moody Radio. I'm
Rob West, taking your calls and questions. I've got two lines.
Open 800 525 7000. You can call right now. Let's
(22:16):
go to, uh, Birmingham, Alabama. Hi, David. Go ahead sir.
S6 (22:20):
Hey, Rob, thank you very much for taking my call. Uh,
my question has to do with I'm 62 years old.
I'm still working. I don't plan to retire until 65.
Or maybe 67. Our hospital has just started offering a
Roth 403 B plan. I was just kind of curious
at my age, would that be a. I would really
like to do that, to have a legacy for my son,
(22:41):
who's 25. Um, I was just wondering, would that be
a good idea at my age to begin a Roth
403 B basically at zero and start going now?
S1 (22:52):
Yeah, yeah. Very good. Uh, it's a good question. It
really comes down to, uh, you know, you've still got
some strong earnings years left if you're going to work
until full retirement age. If your income is high traditional,
the traditional 403 B would obviously help to reduce today's taxes. If,
though you can afford to pay the taxes now, the
(23:14):
Roth gives you more flexibility later because you don't have
to take it out with a required minimum. So, you know,
generally speaking, if you're in a high tax bracket now
and expect to be in a lower bracket in retirement.
The traditional gives you that tax break today and lets
you defer taxes until later. Uh, if you're in that
(23:35):
moderate or low tax bracket now, then the Roth may
be better because your money grows tax free and you'll
pay no taxes in withdrawals on withdrawals during retirement. Um,
the other approach to consider is, uh, there was a
study done by some University of Arizona researchers where they
were looking at whether, you know, what was the right
(23:56):
mix between traditional and Roth. And they were looking at
this idea of tax rates changing in the future and
just that being an unknown. And they studied this and
came up with a rule of thumb that in their
work produced near ideal results. And that rule of thumb
is simply to add 20 to your age and put
(24:17):
that percentage in a traditional. So in your case, that
would be call it 80% with the rest going into wrath. Um,
and they say that the common advice that older workers
should be funnelling most of their contributions into traditional accounts
doesn't consider the risks, uh, of of tax rates in
(24:37):
the future and that some of, uh, you know, investing
some of those contributions. In your case, it would be
a fairly small amount, uh, into Roth eliminates some of
that risk down the road. So, you know, I think
I would probably skew toward the traditional even if you
decided if you're at the peak of your earning years,
you just don't even want to bother with the hassle
(24:58):
of opening the Roth and just stick with the traditional.
But if you wanted to start to divert some of
it in their case, in the case of these University
of Arizona researchers, perhaps as much as 20 to 25%, uh,
you know, you certainly could do that. And then you'd
have both buckets to pull from down the road, uh,
you know, based on which one was better at the time.
Does that make sense?
S6 (25:18):
Right. It does. I appreciate that, thank you very much.
S1 (25:21):
All right. Thanks, David. We appreciate your call. Uh. Let's see. Bolingbrook, Illinois. Hi, Joanna.
Go ahead.
S7 (25:28):
Hi. Thank you so much for taking my call. Um, yes.
I just have, like, a couple of questions because, I
don't know, um, if this is the best time to
sell my house. I live in a a townhome. Um,
I'm 46 years old, and, um, if I put that
on the market, um, where should, uh, what is the
(25:50):
best investment for the equity that I'm getting? Because I'm
planning yet? Um, just to get an apartment for now
after I sell it.
S1 (26:00):
Yeah, yeah, I think the only question, Joanna, is just,
you know, whether you want to stay as a renter
long term. Because if you if you really want to
own something and get the appreciation that comes with it and,
and just the ownership where you can pay it off
over time and you're not continuing the cycle of renting,
then I wouldn't want you to invest that money only
(26:22):
to decide, let's say, in 2 or 3 or four years,
that you want to buy something. And then let's say
the market was down because we're in a recession. I
don't know whether we will be or not. Nobody does.
But the market or the economy works in cycles, and
we're kind of long overdue for a recession. So let's
just take the worst case scenario. Let's say three years
from now, the market's down 20 or 30%. Your investment,
(26:45):
the proceeds of your townhome sale, you know, that you
invested are down 20 or 30%, and you're wanting to
buy something. You know, you're going to have to sell
it at a loss. And now you don't have as
much to work with. And so I think you need
to kind of play this out a little bit longer
term and think about your long term housing situation and
(27:06):
make some decisions before you were to take this money
and invest it, because I wouldn't want you to invest
this money unless you felt like you had at least
a ten year time horizon on it. Does that make sense?
S7 (27:19):
Yeah. Yeah. So it's probably like, uh, I can stay
a little longer maybe. Or.
S1 (27:28):
Yeah. Or what about. I mean, what is what is
causing you to feel like you need to sell this
and rent? Is it, um, what's driving that decision?
S7 (27:37):
Right. Uh. Good question. Yeah. Well, I'm nearly. I feel
like I'm 46 already, and I don't have much, um,
savings on my own, and and, um, I feel like
I needed this so I can start investing more and
then and then put away some money for the emergency fund.
(28:02):
And with the situation with the townhomes, the association, um,
fee is getting, um, going up and up and up
almost every quarterly. Um, it's just getting tired of, uh. Uh,
some expenses that I have in the townhomes. Yeah, yeah.
S1 (28:22):
Okay, well, it may be that you need to really
consider whether this is the right property for you. I
totally get that. And, you know, with townhomes, you do
have some of these common area assessments and, you know,
homeowners type expenses that are out of your control. Um,
you know, it may be that you replace this with
a small starter home that doesn't have that, um, or,
(28:47):
you know, maybe you sell it and rent for a
period of time, but you don't necessarily invest it. Um,
you just put it away, earn some interest on it,
continue to save until you can buy something that fits
your budget, because the goal would be and this would
be true whether you're renting or you own, your goal
would be to get your monthly payment for your housing.
(29:09):
In the case of the rent, it would just be
the rent. In the case of the mortgage, it would
be principal interest, taxes and insurance. You'd want the goal
to be that to be no more than 25% of
your take home pay, and that's going to give you
enough left over so that you can not only cover
your bills, put food on the table, gas in the car,
pay the utilities and, you know, have some discretionary money
(29:31):
for clothes and entertainment and travel, things like that. But
you'd also have some surplus, something left at the end
of the month to accomplish your goals, beginning with building
up and fully funding over time, your emergency fund of
3 to 6 months expenses, and then maybe moving beyond
that into putting some money into a retirement account, either
at work or on your own, and something like a
(29:53):
Roth IRA. Um, but I don't know that, uh, if
you ultimately want to be a homeowner, it makes sense
for you to take the proceeds of your townhome sale,
even if it's the right thing to sell it, because
it continues. You know, it's it's too much expense for
your budget. I don't know that it makes sense to
invest that just because, you know, we may want to
(30:14):
use that for another purchase down the road, and if so,
we need to make sure the time horizon is right
on those investments. Does that make sense?
S7 (30:23):
Right, right. Yeah, yeah. Thank you. Thank you so much.
S8 (30:26):
All right.
S1 (30:27):
Yeah. So maybe the answer here is let's evaluate whether
or not this townhome is the right thing for you.
And if it's getting too costly, maybe you're absolutely right.
Let's sell it. But I think I'd take whatever equity
you have, put it in savings, maybe an online savings
account at an online bank, you could get 4% a
year on it. And let's then get into a rental
(30:47):
that actually fits your budget so you can save for
your next purchase and fund retirement. Thanks for your call.
We'll be right back. Great to have you with us
today on Faith and Finance Live. I'm Rob West. Let's
go right back to the phones here in the final segment.
We'll get to as many calls as we can. Indiana
(31:09):
is where we're headed next. Benjamin. Go ahead.
S9 (31:12):
Yeah, I have a loan in my name for a
friend of mine for home improvement. We're not able to
make the payments. My mom works in taxes, and I'm
wondering about debt forgiveness for the loan. Uh.
S1 (31:26):
Yeah. Uh, and so what are you looking to essentially
try to to just consider this bad debt?
S9 (31:33):
I'm trying to get out of it, if possible. I
just don't see myself paying for, uh, nine more years.
S1 (31:40):
Yeah. Okay. Yeah. I think the challenge is you obligated yourself.
Did you? You took this out in your name, is
that right?
S9 (31:47):
Correct.
S1 (31:48):
Okay. Um, yeah. I mean, so from the let's set
the taxes aside for a second. I mean, you know,
in terms of you taking out a loan in your
name for a friend, obviously the lender is going to
look to you for repayment on this, whether or not
your friend is able to make the payment, the extent
to which you don't pay it, uh, you know, the
they're going to, you know, that's going to reflect on
(32:10):
you poorly in terms of your commitment to do that.
Not only that, but also likely to trash your credit
in the process. Um, you know, I think, you know,
we started the program talking about this today. How do
you respond as a believer when somebody owes you money? And,
you know, that certainly applies here? I think you want to,
you know, come in initially with understanding, uh, with good communication.
(32:33):
Let them know that, you know, remind them of the agreement,
let them know that, uh, you know, find out if
they have a repayment plan in mind, offer potential solutions.
Maybe they can stretch it out and pay a little
bit less each month in a way that would fit
their budget. Um, you would obviously have to bear the
full amount, but anything you can do to recoup, recoup,
even some of it is going to help, you know, you, uh,
(32:57):
move this toward ultimately being paid back. If they won't
do it, then obviously God's Word, if this is a believer,
offers a a model for how you could approach this, uh,
in Matthew 18, in terms of getting the local church
involved in terms of just from a practical standpoint, um,
you know, if, uh, if you just come to the
conclusion they're not going to pay it and you don't
(33:18):
want to pursue it any longer, then, you know, you would, um,
you know, just probably have to pay it off yourself,
consider it a gift or perhaps a painful lesson, uh,
on on this situation and absorb that yourself from a
tax standpoint. Um, you know, if you loan someone money,
which is essentially what you've done, they haven't paid you back,
(33:38):
you can claim it as a non-business bad debt on
your taxes. You'd want to talk to your CPA about that,
because there is some strict rules that the IRS requires
with regard to clear evidence that it was a loan
and you tried to collect. And so that's why you'd
want to get a CPA involved. But I think there's
kind of two sides of this. Number one, how do
you want to navigate it relationally? And in terms of
(34:02):
whether you want to try to work with the person
to begin to, you know, get paid back, even if
it's over a longer payback period with clear communication and, and, um,
you know, real forthright conversation. And then the other side
is whether you're ready, willing and able to step in
and pay it off so it doesn't come back to
harm you. And then are there any potential tax implications
(34:24):
to you? You know, recouping some of this by way of, uh,
of a bad debt that you could claim on your taxes?
Does that make sense?
S9 (34:33):
Yes it does. Now, my mom's involved with taxes. So
she told me that there's a way to get debt forgiveness.
She sounds pretty sure about that. But we don't talk
about it too much because the payments were being made.
We have not missed a payment in a year and
a half. But the girl I've paid the last five months,
and she paid the other eight months prior to the
(34:54):
last five months. Um, but, you know, she lost her job,
she started a new job. And, um, you know, I've
been paying it, but like I said, my mom works
in taxes and mentioned there's a way for debt forgiveness.
Whether she's done this before. Some of the clients I'm
not sure. But she mentioned that maybe an option.
S1 (35:12):
Yeah, that's that's not something that's going to be readily
available to you. I mean, you know, you could go
the debt settlement route. The problem is that depending on,
you know, if this is a what type of loan
is this? It's just just like a signature loan from
a bank or what is it, a home?
S9 (35:28):
Home improvement for a furnace and air conditioner.
S1 (35:31):
Okay. Yeah. So you could contact the lender and let
them know the situation and tell them you want to
try to negotiate a payoff. Usually they're going to make
you get past due, and that's going to trash your
credit in the meantime. And then the forgiven amount is taxable. Uh,
student loans offer forgiveness through the student loan public service
loan forgiveness program. But this is not a government student loan. Uh,
(35:52):
medical debt can sometimes be negotiated down. Um, and mortgage debt.
Same thing through a modification, but that's rare. So I
don't think you're going to be able to find any
forgiveness options other than you just you stop paying. But
I would question that just with regard to, you know,
the commitment you made and the obligation you have to
(36:12):
pay it by way of you taking out this loan,
whether or not you know, you think that was a
good idea at this point or not. It's that's in
the past, and there's not really going to be any
forgiveness options available to you other than if this gets
severely past due. The lender may be willing to try
to negotiate a settlement, but that's after there's probably been
harm imposed on you through your credit report. So the
(36:35):
only thing that would then be available is if you
pay it off, consider it a bad debt and can
prove that to the IRS. Then there may be some
tax advantages for you, so hopefully that helps you. Benjamin,
I know this is not a great situation, but uh,
pray about it. Ask the Lord to give you wisdom. And, uh,
we appreciate your call today. Thanks for being on the program. Uh,
let's go to South Florida. Joanne. Go ahead.
S10 (36:57):
Yes. Hi, Rob. I just wanted to tell you and
your team. Thank you, thank you, thank you a million.
Thanks for the advice, for the information that you give.
It is absolutely freeing. If we had to go to
an outside advisor for this, I mean, we could not.
(37:18):
Most of us I think are just speaking could probably
not afford it. And the only regret that I have
is that I didn't start sooner. And I would implore. Yes,
and you've spoken to that, and you speak to that.
Anyone out there who's on the fence in terms of investing, please,
(37:39):
$10 a week, you know, ten, $12, that's about $50
a month. Just go to a brokerage, open it. I mean,
I'm with fidelity now. I have no interest with them.
So I'm not, you know. Sure. But it's they will
help you. They're so eager to help you, whether it's
$1 million or 500. And they will walk you through
(38:02):
the you know, the process, please. Because when I look
back and I see how much money that I have
left on the table, you know.
S1 (38:12):
Yeah.
S10 (38:12):
Uh, for not maybe starting when you're 40 or 50
and I would say, just sit down. Sit down with your,
your bills. Put pen and paper. I'm old. So put it,
you know, pen and paper and just list your monthly bills.
It sounds so trite. We say it all the time,
(38:32):
but do it for me. I need to be organized,
and I need it to kind of also do it
a little bit of my way in that I need
separate accounts for separate things. You know. Yes, ma'am. So
this whatever works for you? Yes. The information is out there,
but you have to let it work for you. You know,
(38:54):
so maybe put your bills in one account, put your
the your other spending food. you know your variables in
another account and just do it 50. When I look back,
I said, oh my God, you know, $50 a month.
I know for some of us it may be a
lot and I'm still tithing. I'm still able to give
to the children's, you know, fund. But thank you so much,
(39:18):
Rob your, your you and your team. What you've done,
it's just priceless. Invaluable. And I want to thank you.
The freedom that I have now and the stress, you know,
off the shoulders with the money, um, you know, put
some money in that in your, in your emergency account
(39:38):
and leave it there and then maybe start paying off
the credit cards if you have that. Because maybe if
you do it the opposite that's recommended and something happens,
you have to go back to the credit card. But again,
you know, adapt it to you, you know, to your
circumstance and what makes you comfortable. But please, you, your children.
(39:58):
Just let them start early. Because we say money. The
love of money is the root of all evil. But
the lack of money is just horrendous.
S1 (40:09):
Well, Joanne, that's incredible. First of all, thank you. Thank
you for your kind remarks. Um. So great. Grateful for
what you just shared. Incredibly encouraging to me. I appreciate
that you called out the team because you're exactly right.
This is certainly not about me. Uh, and I couldn't
do this without an amazing team around me. And so
thank you for saying that. I appreciate you saying you've
(40:32):
got to make it work for you. And so you've
got to find the right rhythms and mechanics for you.
It was having those separate accounts. I love that one
for your bills and one for other savings vehicles. I
love that you said just start somewhere and start early.
Even if it's ten, 20, $50 a month, start somewhere,
put it away, let it grow and you will be
(40:53):
glad you did. Your future self will thank you. I
love that you're a generous giver and you've made a
commitment to that along the way. So, Joanne, that was
a blessing and an encouragement to me. Thank you for
sharing that. May the Lord bless you. And next time
I go on vacation, you might be hosting the program. Joanne.
That was amazing. Listen, the Lord bless you and stay
on the line. I want to have my team send
(41:13):
you a copy of our most recent edition of our
Faithful Steward Magazine, just as our way of saying thanks
for being a big fan and of the program, and
hopefully some of the articles in it will be an
encouragement to you. God bless you. Well, Margaret, I apologize.
We're out of time today. I think just seeing your
question here about, um, you know, what, if I started somewhere,
(41:35):
I've got limited resources. I'm on SSDI, your daughter manages
your money, and after paying your bills, there's $300 left over.
And you're saying, should I take $100 a month and
invest that? And given what we just heard from Joanne,
I think that was a perfect testimony for you. Hopefully
that was an encouragement to you, Margaret. Yes. Start somewhere.
(41:56):
If you've got money built up in an emergency fund
that your daughter is handling, so that's covered, then? Yeah.
If you've got 300 totally discretionary unallocated, and you could
take 100 a month and put it away, you know,
whether that's in a high yield savings account or in
a high quality mutual fund at Fidelity or Schwab. I
(42:17):
know Joanne said she uses fidelity and they've been very helpful.
That's great. Open a brokerage account, get it invested, let
it grow. Make a systematic contribution. You will be glad
you did. Margaret. We're going to send you a copy
of the Sound Mind Investing Handbook. So you stay on
the line. Our team will mail that to you as
our gift. I apologize we didn't get you on the
air today, but I hope Joanne's testimony and what I
(42:39):
just shared is helpful to you. Hey, a big thanks
to that team. Joanne was talking about Amy, Jim, Omar,
Tara and everybody here at Faith by Faith and Finance
lives a partnership between Moody Radio and Faith fi. We'll
see you tomorrow. Bye bye.
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