December 5, 2025 • 42 mins
We check the markets often—but how often do we check our hearts? Most of us approach investing with calculators, but do we also consider character? What if God wants to shape both? On the next Faith & Finance Live, Tim Macready joins Rob West to show how believers can approach investing as a spiritual practice, aligning our portfolios—and our hearts—with God’s purposes. Then it’s your calls. That’s Faith and 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
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
S1 (00:08):
We've checked the markets often, but how often do we
check our hearts? Hi, I'm Rob West. Most of us
approach investing with calculators, not character. But what if God
wants us to shape both? Today, Tim McCreadie joins us
to show how believers can approach investing as a spiritual practice,
aligning our portfolios and our hearts with God's purposes. Then
(00:30):
it's on to your calls at 800 525 7000. That's
800 525 7000. This is faith in finance. Live. Biblical
wisdom for your financial journey. Well, it's always a pleasure
to have my friend Tim McCready on the program. He's
head of global advisory at Bright Light, part of the
(00:52):
Eversource Wealth Advisors team. Tim, great to have you back.
S2 (00:56):
Always good to be with you, Rob.
S1 (00:57):
Tim, you've been helping us both at Kingdom Advisors and
here at Faith five. Build a theological framework for how
believers can develop a biblical worldview of investing. And the
article you wrote recently that flows out of that larger project,
it really jumped out at me. I want to unpack
that a bit today. Why do you think it's so
critical that we approach investing from a spiritual perspective?
S2 (01:21):
Well, Jesus said in Matthew six that our hearts follow
our treasure. Um, I think this means that where and
how we invest matters spiritually, not just because it's a
reflection of faithfulness, but because it's actually those investment decisions
are shaping who we're becoming as we seek to be
like Jesus. And so because of that, spiritual practices around
our investments can help to align our hearts with God,
(01:43):
not just our financial goals, but who he is. It
invites God into our portfolios, which helps us to grow
as stewards and disciples. Um, and ultimately, investing even becomes
a form of worship. Um, as we let it and
the decisions that we make shape our hearts towards him.
S1 (01:59):
Mhm. Yeah. That's well said. Uh you begin your article
by introducing the Ignatian prayer of examine uh, practice believers
have used for centuries. Tim. How does that help shape
the way we think about investing today?
S2 (02:15):
Yeah. So Saint Ignatius of Loyola, um, centuries ago, kind
of developed this daily examine as a practice of reflecting
prayerfully on our day, uh, repenting of sin, being aware
of God's presence, looking forward to his gifts and presence
with us tomorrow. One of the things that I and
others have been looking at is what it might look
like to apply some of these disciplines, uh, into our
(02:37):
everyday lives, but also into our investment portfolios. Uh, and
this this prayer of examine from an investor's perspective helps
us to move from just analysis to discernment, from control
to surrender. Uh, it invites God into that part of
our life, just the same way as closing our day
with a reflection of God's presence with us during the
day can help us to be very conscious of him
(02:58):
as we fall asleep.
S1 (02:59):
Tim, this is powerful. I mean, spiritual practices and disciplines
related to our investing. I mean, this is a brand
new idea for most believers and yet so powerful. And
I want to unpack it a bit more because you
begin that process with gratitude. What does that look like
for an investor in your view?
S2 (03:18):
Yeah. So for an investor gratitude, it quiets our hearts.
It helps us remember that investing is part of God's
generosity to us, his blessing to us. Uh, like the
daily examine, uh, when we look at and examine from
an investor's perspective, we start with gratitude. It helps us
notice God's provision before we look at any performance. It
reminds us that we're stewards of what he's entrusted to us.
(03:40):
It also reminds us, Rob, I think that true riches
are found in relationship as much as we might be
thankful for our portfolios. Yeah, here's what this might sound like. Rob. Uh, okay.
Heavenly father, thank you for your many gifts to me.
I recognize that my investment portfolio is one of those
gifts from you. You have entrusted these assets to my stewardship.
(04:00):
I invite you to speak to me now about my stewardship,
to encourage me, to challenge me, to remind me of
your goodness and steadfast faithfulness that I might draw closer
to you.
S1 (04:10):
Wow. Well, if we started with that prayer, Tim, I
suspect that would lead us down an entirely different path
when it comes to choosing our investments from that point forward,
wouldn't it?
S2 (04:23):
I think so, Rob. Yeah.
S1 (04:24):
Yeah. After gratitude, you moved to the next step. And
that is review. What does that mean for an investor
who's trying to discern God's presence in their portfolio?
S2 (04:34):
Yeah. So in the Daily Examine review is about looking
back through the day, remembering what we were doing and
how we felt, and sensing God's presence with us. For
an investor, I encourage investors to look at each line
of their portfolio with gratitude, with reflection, with thoughtfulness, just
pausing to look back and recognize where God has been
at work through our investments. This helps us to see
(04:55):
beyond numbers to the people, communities, the purposes that our
investment portfolios touch. And we might find both joy and conviction.
Places where God is pleased and where he is inviting
us towards change. Wow.
S1 (05:09):
This is incredible. We're going to continue the conversation with
Tim McCreadie, Head of Global Advisory at Bright Light, just
around the corner. How spiritual practices can transform your investing.
Stay with us. We'll be right back. Have you ever
(05:34):
thought about how spiritual practices could transform your investing? That's
what we're talking about today with my friend Tim McCreadie.
He's head of global advisory at Bright Light. Part of
the Eversource Wealth Advisors team. Tim has been spearheading a
project for us here at Kingdom Advisors and Faith fi
to build out a theological framework for how believers, including advisors,
(05:57):
can develop a biblical worldview of investing and apply it
to this daily practice. And you know, Tim, we're going
to jump back into this. This is so rich. But
at its core, I think we need to understand that
the purpose of investing is to supply capital to business,
which is to produce goods and services that should be
good and serve people. Right.
S2 (06:18):
Amen. Rob, I think investing is part of God's plan
for flourishing. It takes money that would otherwise not be
doing anything, and places it with businesses and companies that
can use it for flourishing.
S1 (06:28):
Yeah, that's exactly right. And you've really led the way
in so many ways around this whole emerging space of
faith based investing, which is just exploding right now. And
that's so exciting. Well, we're unpacking these spiritual principles set
this up for us. If somebody's just joining us and
perhaps take us back to the Ignatian prayer of examine.
S2 (06:49):
Yeah. So as a reminder, the Ignatian daily Examen is
this idea that at the end of the day, we
we pause and we reflect on God's presence with us
through the day. Uh, we express gratefulness and gratitude. Uh,
we reflect on where we've fallen short. We invite his
presence with us for the next day as we fall asleep.
And we've been thinking about what it might look like
as investors to adopt a similar practice around our portfolio.
S1 (07:11):
Well, we talked before the break about gratitude, a powerful
place to start. And then we talked about reviewing, uh,
but let's move into the next phase of this and
you move into repentance and renewal, which is a significant shift.
How might that sound in prayer for an investor?
S2 (07:29):
So perhaps as we review our portfolio, we sense conviction.
Maybe something feels like it's misaligned with God's desires. Perhaps
we realize as we rejoice over our portfolio, that we
have placed our security and our trust in it. Perhaps
we've made it an idol, taking God's place as our provider.
Perhaps we even realize that God might be asking us
to give more of it away. Repentance reminds us that
(07:51):
as believers, our trust is in God, not the market. Um,
that our ultimate source of security is him. And then
repentance doesn't stand alone. We we receive forgiveness and renewal.
And that points us towards joy and trust in God's
ongoing provision for us. We might pray something like, uh,
gracious Heavenly Provider, I invite you once again to rule
(08:12):
over all of my life, including the investment portfolio you
have entrusted to me. I'm sorry for where I have
allowed it to take your place in my life. Give
me the courage to take action where you have invited
me to do so. Give me confidence in and thankfulness
for your provision. Give me joy in following your plan
for my life and my portfolio. Confident that you are
(08:33):
always wiser and better than anything I could design on
my own. Help me be generous. Help me to trust you.
S1 (08:39):
Um. Wow. I love that. Now, once we've done the
inward reflection, Tim, you turn to the outward disciplines. And
that really begins with community, also with accountability. Why are
those so essential for Christian investors?
S2 (08:55):
So, I mean, the Great Commission invites us to to go,
to build community, to train, to disciple, to follow Jesus. Uh,
we aren't meant to do this alone. We're meant to
do this in community. We grow best in community. And
even though many of the spiritual practices we learn like this, uh,
investors examine might be done alone, we could also think
(09:16):
about how to live them out in community. Uh, and
certainly to take the learnings as we listen to God
into community, trusted friends can help us discern where money
may have too much hold on us. Um, if you
haven't shared your budget or your portfolio with a trusted friend, uh,
I'd encourage you to do so. It's confronting, but it invites, uh,
other voices into our into our lives. Tells us where
(09:37):
we might be going wrong. Small groups, classes, the faith community.
These can create safe spaces for these stewardship conversations.
S1 (09:45):
Um, Mhm. Yeah. Uh, Tim, this is undoubtedly one of
those areas we try to keep behind the curtain, so
to speak. What's the benefit. What's the promise for somebody
who's willing to be transparent in this area in your view.
S2 (09:59):
So the first thing is if I'm going to show
my budget or my portfolio to a friend, you can
bet that I've looked through it closely to find anything
that maybe my conscience is being pricked a little on
whether that really should be in there. Um, but the
second is we're inviting an independent voice, a voice that
can ask us, look, Tim, do you really need to
spend $20 a month on streaming apps? We want someone
(10:22):
who loves us, who cares for us, but who's willing
to give us that? That question. Uh, nothing wrong with
streaming apps, but maybe if I'm spending $200 a month
showing that to a friend might make me realize that
that's not the way that most people live. Uh, that accountability,
we need it in all of our lives. But anywhere
where we have a threat of an idol, we need
that accountability even more.
S1 (10:43):
Yeah. Boy. That's great. Tim, you also introduced something you
call fasting from market noise. Share that with us.
S2 (10:51):
So again, Rob, as we as we think about the
various spiritual disciplines that Jesus gives us prayer, fasting, contemplation, reflection,
time with God, Christian community. We wanted to think about
this fasting one. Um, we are surrounded by constant market data.
I don't know about you, but my 401, which I
hope to not need for at least another 25 years,
gives me a daily update on my balance. My stock
(11:14):
portfolio might update by the minute. All of this information
gives me the illusion of control, but really it's just
feeding and driving my anxiety. If I'm up, I have
a good day. If I'm down, I have a bad
day for money that I don't need for 25 years.
Taking a break from all of this information helps us
remind us that God is in control, and instead of
chasing security through information, we can rest in God's provision. Again,
(11:37):
kind of Matthew six Luke 12. Who of you by
worrying can add a single hair to your head? Uh,
who of you by worrying about your investment portfolio can
add a single cent to its balance. Now, of course,
we need to make wise decisions with the help of
our financial advisors. I just think a lot of the time,
we don't need this daily market noise that that drives
a lot of our anxiety.
S1 (11:57):
Yeah. I couldn't agree more. What an opportunity to turn
down the noise of this world and turn up God's
voice in our life. Tim, finally, uh, you highlight service,
turning our perspective from what we possess to how we
can serve and bless others. What can that look like
for an investor?
S2 (12:15):
So as an investor, we we have the privilege of
a portfolio to invest. And often that gives us experience
that might help equip others, uh, teaching a budgeting class, uh,
mentoring younger people on how to think about money, uh,
serving on a church finance committee. These, uh, activities that
can often feel mundane can be very profound. Rob, I
(12:35):
for several years had the privilege of teaching, uh, in
a gap year program at one of the seminaries in Sydney.
And it astounded me how ill equipped many of these
students were when it came to basic budgeting or understanding
things like credit cards or payday loans and things like that.
For investors who understand some of this, it can be
a real way to serve. It brings this heart of
wisdom and generosity that God wants us to have with
(12:58):
our investment portfolio, and helps us to equip others. And
I think that when we serve, this stewardship idea becomes contagious.
It transforms our investing from something that we just do
for ourselves to something that equips us to serve others.
This is where faith meets action in community.
S1 (13:15):
Wow. That's powerful. Just about 45 seconds left. Tim. Tie
a bow on this for us. How can these spiritual
practices form a holistic way of investing that honors the Lord?
S2 (13:26):
So together, I think when we bring these ideas like
examine Prayerfulness fasting, it forms this rhythm of worship through
our financial eyes, pointing us towards Jesus Christ as the
true provider and owner of all things. And as we
do this, it transforms us. Because investing is faithfulness. It's
a way we're faithful. It's also a way in which
we grow as disciples. I'm convinced from Jesus words and
(13:49):
almost 25 years of working in this field, that faithfulness
in investing is deeply formative for our whole lives as
followers of Jesus.
S1 (13:57):
That was incredible, Tim. What a great reminder that a
biblical approach to investing isn't measured only by returns, but
by spiritual formation. Thanks for being here, my friend.
S3 (14:08):
Great to be with you, Rob.
S1 (14:09):
Our guest today has been Tim McCready, head of global
advisory at Bright Light, part of the Eversource Wealth Advisors team.
All right. Your calls are next. The number 800 525 7000.
We'll be right back.
S4 (14:34):
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 (14:57):
So thankful to have you with us today on Faith
and finance. Live. I'm Rob West. All right. I got
a favor to ask of you. If you're a client
of a certified Kingdom advisor, you've been listening for years
and you reached out to connected with have a relationship
with a seeker. We need your help. We're doing a
national research project to really have the empirical data that says,
(15:19):
here's the outcomes you can expect when you work with
a certified Kingdom advisor. By evaluating clients through a survey,
those who are both non clients, clients of advisors who
don't have the designation versus those who are with a seeker. Well,
all the ones who are with a non-k. We've got
all that we need. But we're 200 surveys away from
(15:42):
having what we need. For those who do have a
c k. So if that's you, I need your help.
If you've got ten minutes, I'd love for you to
go to Faith B-complex and be a part of this
research study. All of the information will be in the aggregate.
Your information will be held anonymously. It won't be shared
with your advisor. But if you have a certified Kingdom
(16:05):
Advisor that you work with, you're a client and you'd
be willing to take this survey, we'd be grateful. We're
looking for 200 more faith. Com is the place to go.
And thanks in advance. I know you probably get asked
to do surveys all the time, including those political ones,
but this one's a little different, and I promise it'll
be worth it. All right. In the news today, gasoline
(16:27):
prices in the US have fallen to their lowest level
since 2021, offering a bit of relief just as winter
and holiday spending begin. The national average of regular gas
hit about $2.95 a gallon. That's as of December 30th.
Excuse me. December 1st. That's according to data from GasBuddy.
(16:48):
That marks the cheapest rates Americans have seen in more
than four years. Several factors are behind the drop. Crude
oil production has increased, and there's been fewer disruptions at
Gulf Coast refineries, a relief after recent years of volatile prices.
As a result, this downward pressure on fuel costs may
(17:08):
slow or even reverse sharp increases in grocery and retail
prices that often follow when transportation and shipping costs rise. Now,
what does this mean for your budget? Well, first, lower
pump prices of course, give households immediate breathing room more
cash for groceries, bills, holiday expenses or debt payoff. Second,
(17:30):
over the next few weeks, stable or falling fuel costs
could help moderate inflation, pressure on broader goods and services,
especially groceries. And then thirdly, for families and retirees on
fixed income or tight budgets, this could mean extra margin
useful for building savings or handling unexpected costs. In short,
(17:53):
while the economy still faces challenges, this drop in gas
prices offers a little financial relief. That's, of course, good
news for anyone juggling bills or retirement planning, or just
general household budgets. Stress. Still, these times of inflation call
for us to be extra mindful of our budgets and
prepare for uncertainty. Remember, Proverbs six reminds us of that
(18:16):
aunt who considers her ways and is wise without having
any chief or officer or ruler. She prepares her bread
in the summer and gathers her food in the harvest.
We should take note of that wise approach. All right.
We'll begin taking your calls and questions here in just
a moment. We do have some lines open. So if
you've got a financial question today. Today's a great day
(18:37):
for you to call 800 525 7000. Again that's 800
525 7000. Let's go to Indianapolis, Indiana. Gary. Go ahead.
S5 (18:48):
Hey, Rob. Um, first off, I wanted to thank you
for doing what you're doing. There's a lot of us
out here, um, you know, young and old, that we
just rely on everybody else to take care of our
financial stuff, and we don't have a clue. Um. I
don't have a clue. I was you mentioned the. And
I've been a grasshopper all my life, and, um, these,
(19:10):
these last, you know, but my kids had. We had
a good life, I can't complain. Um, but the last
few years, um, I finally found the Lord, and things
have really changed dramatically. Um, which is no surprise. Um, but,
you know, I've got a couple, um, um, old 401
(19:33):
that I needed to roll over for a long time,
and I haven't done it. Well, the last two years.
The first time in my life I've been able to
squirrel away a bunch of money. Um, you know, I've
gotten such a position. I don't owe anything. I don't
owe anybody anything. Um, except a car insurance and, you know,
a few little, you know, normal things. Um, but, you know,
(19:54):
I'm I'm I'm. I can save $3,000 a month now.
I've never been able to do that. Yeah. Um, but
this 400 1KI went to the bank and I said, hey,
I need to roll these over. What do I do?
And he gave me a few, 2 or 3 options. Um,
you know, all of them were, you know, okay. Um,
one of them was seemed a lot better, but the
one that was a lot better was an American balanced fund.
(20:17):
You ever heard of that?
S1 (20:19):
I sure have.
S5 (20:19):
An American balanced fund, um, through capital Group. And it
was like a 3.5% upfront boom. One time fee. Yeah,
that's a chunk of change. Yeah. And then it was
like a one or a 1.5% per year. Um, you know,
management fee. And I thought, man, that sounds kind of counterintuitive.
You know, um, I can only put so much I
(20:41):
can roll over everything on these two checks because it's
a rollover. But I still got a bunch of money
in the bank that I want to add to it.
But you said, you know, in January you can put
16,000 in there because of your age. You can you
can make those contributions. Um, so I wouldn't have to
pay that 3.5% on the 16,000. But what I'm rolling over,
(21:03):
I mean, those normal fees, I've never seen a fee
like that on my 401 K statements.
S1 (21:09):
Yeah. No you wouldn't. So these are load fees for, um,
you know, a particular class of mutual fund that has
a front end load. Uh, those can go as high as,
you know, almost 6%. Uh, the American Funds is probably
an A share, which is that up front load. And,
you know, you may have invested enough to get a
(21:30):
reduced break point. Let's do this. I want to kind
of break down the various options for you in terms
of how you should think about investing going forward, because
it has a lot to do with who's making the
decisions and then how you get charged or how they
get paid for their work. And there's a variety of approaches,
and I want to make sure you have a good
feel for for what those are. So Gary, stay right there.
(21:52):
We'll pick it up on the other side of the break.
We'll be right back on Faith and finance live. Great
to have you with us today on Faith and finance live.
I'm Rob West. We're taking your calls and questions today.
That number 800 525 7000. That's 800 525 7000. We'd
(22:17):
love to hear from you today. We do have some
lines open. Uh, our team is ready to take your call. Uh,
before the break, we were talking to Gary in Indianapolis.
Gary got a later start with his retirement savings and
but he's been as of late able with quite a
bit of margin surplus each month to sock away a
good bit into his retirement account. And he was surprised
(22:39):
to see, you know, the various approaches to how he
was having to pay for these investments. One was a
$450 upfront flat fee and then a 1% a year.
Another one, an American's Fund balanced mutual fund, quoted him
an upfront charge of of 3.5%, which is a front
(22:59):
end load. Gary, let me unpack the various ways. You know,
you can be charged in terms of how you invest.
And I'll break these down into two categories. The first
is when you work with a financial advisor, and the
second is when you do it yourself. So when you
work with a financial advisor, there's three main ways advisors
get paid for helping you invest. The first is what's
(23:20):
called an AUM fee. Assets under management. So it's a
percentage of the assets. This is most common today. That
wasn't the case, you know, a couple of decades ago.
It is the norm today. And basically how it works
is you pay a percentage of your investments each year,
usually around 1%. It can go higher than that if
(23:42):
you have a smaller account. It typically goes lower than
that as you get up into, you know, beyond $1 million,
you might come down below 1%, but somewhere between three
quarters of a point and 1.5% a year is probably
what you're going to be paying, and you get ongoing guidance.
Often they will roll the retirement planning into that. They'll
(24:04):
certainly take discretion over the investment management. You have someone
to call, you know, when life changes, it's easy to understand.
And your advisor is incented because they only get a
raise when your account grows and it eliminates all the
upfront commissions. The second is in fact a commission based
advisor who either gets a front end load, like you mentioned,
(24:26):
that 3.5%, which was probably discounted. A lot of times
it's it's higher than that 5% or more or a
back end load where there's no upfront fee. You pay
a declining sales charge if you sell within 6 or
7 years. And basically they get paid if you leave early,
but it's on the back end. And then there's what's
(24:48):
called a level load where it's not up front or
back end, but it's, you know, embedded in the fund
every year. It's kind of a pay as you go.
That might be that 1% charge you were talking about.
And that's usually with the C shares. There's A shares
B shares and and C shares. The benefit of the
Commission might be for a smaller account without that ongoing
(25:10):
advisor bill. The downside is and it's not my favorite approach,
it can be expensive. The fund choices are limited, and
the advisor is paid by getting you to make a
new transaction, which doesn't necessarily, you know, put the emphasis
on just serving you at the very best product. And
then the third approach is a flat fee or hourly
(25:32):
planning that's typically for, you know, just the straight advice
without the asset management. Now when you do it yourself
without an advisor, you typically would use something called a
no load mutual fund, which are most index funds today
where there's no commissions, no no front end, no back end,
no nothing. Uh, and then you just have an expense
(25:54):
ratio built in. And that's usually, you know, the Fidelitys
and the Schwab's. That's the lowest cost option. You could
also have a robo advisor where it's basically a computer
algorithm that's helping to build the portfolio for you based
on the questions you answer. And then there's what's called self-directed,
where you're essentially buying and selling yourself stocks bonds, mutual funds.
(26:17):
So those are kind of the the various approaches. And
if you're with an advisor, I would say a better approach,
especially as you build more and more wealth, would not
be the commissioned approach that it sounds like you've been in,
but probably moving to that percentage of assets under management approach,
which would be what most advisors do today. But give
(26:39):
me your thoughts on all that.
S5 (26:42):
Um, so if they're if they're the one I picked
was the one he he said was going to be,
you know, the I want to say it was around 3.5%
up front, flat fee and then 1% per year. That's
the one I chose because it, it you know, at
my age I probably shouldn't go aggressive, but I'm going
(27:04):
a little more aggressive than probably I should. Um, I
really got a good feel about the AI and some
of this other stuff. Do I like what AI does? No,
but I think it's going to make some money. Um, um,
you know, the the, the 3.5% up front and a 1%.
I just thought that was a bit much, but I
liked I liked the return, I liked, um, you know,
(27:27):
the vehicles that was using, um, but, you know, that's
why I'm calling you is because I don't know if if,
you know, there's there's something out else out there that
I'm not experienced in this. Uh, like I said, I
know how to spend money. I don't know how to
save it. Just saving stuff is new to me.
S1 (27:44):
Well, I don't really like the what you're describing. I mean,
if you would have called me before you bought it
and said, Rob, should I get into a mutual fund
where I'm going to pay a 3.5% upfront load, and
then I'm going to pay 1% a year, and I
don't have an advisor who's overseeing this. Basically, he's just
kind of said, yeah, I like this, but I'm making
the decisions. I would say that's a very expensive mutual fund.
(28:04):
You could find other funds, either mutual funds or exchange
traded funds that give you the exposure to the, you know,
asset classes and sectors that you want. If you want
to be tech heavy, even AI, you can recreate that
in a much less expensive approach with exchange traded funds
and and other low load or no load mutual funds. Um, my.
(28:29):
So that wouldn't have been the way I would go.
I would have said, let's do that another way. But
I think to your latter point about, hey, I don't
really know what I'm doing at this point and, you know,
this is not my expertise. Um, that's where most people
are at, which is why I would say, go get
a certified Kingdom advisor who can sit with you, do
the discovery, understand your income needs, your your risk tolerance,
(28:53):
your age, your goals and objectives, where God is taking you,
how much you no longer. You're planning to work all
those things and then let that advisor build and manage
on an ongoing basis the investment portfolio. I would say,
you know, that would be the approach I would rather
you take, rather than you making the buy and sell
decisions and paying these high loads.
S5 (29:16):
Yeah. Well, the good news is I haven't signed anything yet.
I'm still waiting. They. He directed me to call my,
you know, the, you know, core bridge and these other
people that have my money and have them, um, do
a rollover, cut me the check or cut them the
check in care of whoever with me as the, um,
(29:38):
in my in care of myself. And then they give
me some kind of special envelopes, and I don't understand
all that either. But then I mail those checks, and
then he does all the work, and then I go sign.
So I haven't done anything yet. Yeah, I haven't got
the text. So yeah, I can well, you know.
S1 (29:53):
And I wouldn't even, I wouldn't even like you to
do that. I mean, what I would do is I'd
pick the adviser that you want to work with and
then let the adviser, you know, have you fill out
the paperwork so that the assets go directly from where
they are now, directly into your new account that the
adviser is managing? You don't want to touch it because
(30:14):
you don't want to take a chance that it's somehow,
you know, seen as a distribution to you, which is taxable.
You want it to go right from where it is
today in the 401 K to your new IRA, wherever
your new advisor custodies his or her assets. It never
comes to you. It's a direct rollover, and therefore there's
(30:34):
never any question about whether there's a taxable event that
has occurred. And then from that point forward, you've already
done the discovery meetings and the advisors off to the races,
you know, to to manage the money. Let's do this.
I want to send you a book. I also want
to make sure you don't have any other questions. So
stay on the line. We'll talk a bit more off
the air. We'll be right back with Faith and Finance Live. Hey,
(31:03):
thanks for joining us today on Faith and Finance Live.
Big thanks to Gary for calling in. Gary. I didn't
get a chance to tell you. I'm so appreciative of
just your kind remarks about the program and really grateful
to be able to visit with you today. Thanks for
your call to Pennsylvania, Diane. Go ahead.
S6 (31:20):
Hi. Thank you so much for taking my call. Uh,
my story is I'm 71 years old, never married, worked
my entire life, and I rented all throughout life. And
in 2020 4th October, I had the opportunity to buy
into a retirement community here in Lancaster. So I did not,
(31:45):
of course, have a house to sell or anything like that.
So I withdrew from my IRA where I put all
my money. And so now, um, two weeks ago, I
got a notice from Social Security. My new rates for
next year is based on the modified adjusted gross income
(32:06):
of $183,692. And that blew me away, because usually I
have 17 or 18,000, and my Social Security payments up
for next year have gone down $340.40 a month, compared, um,
(32:26):
to to, and it'll total like $4,084 a year for
the year. And it's like, I can't believe this because,
you know, it's like it's so upsetting. I don't know
how I'm going to make it.
S1 (32:41):
Yeah, well, the good news this is is only temporary,
but I realize that it's a big deal. And you're
trying to live on a fixed income. And and this
has put a real strain on that. And I wish
I would have been able to talk to you before
you took the withdrawal so we could have spread it out.
But I certainly understand, you know, you didn't under understand
what the implications were. Uh, what happened is tax and
(33:03):
Medicare cap calculations kicked in because of the large IRA withdrawal.
So the The 118,000 IRA withdrawal is fully taxable. You
normally have about 17 or 18,000 in income, but that
particular year of the withdrawal, your income jumped to 183,000
(33:25):
because you used to your IRA to pay the retirement
community buy in. And that big increase pushed you into
the highest tier for both taxation of your Social Security
and what's called a Medicare Irma charge, an income related
Medicare premium. So together they those can easily take 3
(33:49):
to 400 a month from your Social Security check. So
that $340 reduction is almost certainly higher Medicare premiums being
withheld plus the higher tax withholding. So you're not losing benefits.
You're just losing the the net cash flow because your
income spiked. This is a one year problem only. It was,
(34:12):
you know, caused by that IRA withdrawal. Once your income
goes back down, your Medicare and your tax withholding should
also go back down. But usually with a one year
lag because Medicare looks at income from two years prior.
So high income in 2024 means higher Medicare premiums in 2026.
(34:34):
So once your income drops again, then the premium should
return to normal. Now, what you can do is because
the income spike was one time a life changing event,
you can file a form, uh, and request a reduction
in your Medicare premium. Uh, qualifying life changing events include
(34:55):
a retirement, a loss of income, a change in pension,
and a large one time withdrawal will often qualify when
it's tied to a move or a long term care situation.
Appeals are very common and often approved. So I would consider, uh,
you know, doing that and, and reaching out to the
(35:16):
Social Security Administration in that regard. Okay.
S6 (35:20):
Now, um, to I should have mentioned, I did um,
I received this Saturday two weeks ago. Monday morning I
did go to the Social Security office, and they told
me they gave me paperwork on life changing events, which
this does not qualify. So they said, I've just got
to get through the year. And I even went to the, um,
(35:42):
House of Representatives here in Lancaster and, um, met with
them too. And they're basically saying the same thing. But, um,
the representative did send a letter back to me today
stating that he has it under review with Social Security again. So.
S1 (36:00):
Okay. Well that's good. I mean, let's let's make that
a matter of prayer. Uh, the good news is, Diane,
regardless of how this comes out and let's say, you know,
maybe they review it in your favor and it happens
right away, even if it doesn't eventually, you know, once
we get through this, this one year of this, they're
going to see that your income went right back to
(36:21):
what it was. And, you know, this was a one
time spike. And then everything will reset. I realize you're
going to have to make it until that point. And
so let's let's hope and pray that this additional, uh,
review that's happening will result in a decision in your favor. But, uh,
this is temporary. And and so maybe you need to
reach out to your church, see if they could help or, um,
(36:43):
you know, some other mechanism. But that's essentially the explanation
for why it's happening. Uh, all the best to you, Diane.
I appreciate your call today. And if we can help
further along the way, don't hesitate to reach out. God
bless you. Uh. Nashville, Tennessee. Derek, how can I help?
S7 (36:59):
Hey, there. Thank you, by the way, so much for
what you do. We are very grateful for that. Just
wanted to mention that.
S1 (37:04):
Yeah, I appreciate that.
S7 (37:06):
Um, my question for you is, uh, we inherited a
time share, and we are not using it, and so
we've been paying our taxes on it, but we've been
defaulting on the fees because we're not utilizing it, so
it's gone into foreclosure on purpose. We are kind of
purposely letting it go because in our, you know, lack
(37:28):
of information of how this whole process goes with timeshares,
because we don't know much about them is the value
of it seems to be anywhere between maybe only like
1000 to $3000, but these fees are around $2,600. So
in essence, it wouldn't make sense for us to hold
on to it to pay these fees if we're not
(37:48):
utilizing it. So we're thinking the best thing to do
is have it go in foreclosure. But my concern is
as far as getting a loan in the future, does
that foreclosure on our record, uh, have any bearing in underwriting?
S1 (38:05):
Yeah, I mean that that really can hurt your credit.
So even though it's quote just a time share, the
lender reports it the same way they would report a
home foreclosure or repossession or a major delinquency. Um, you know,
a foreclosure typically stays on your credit report for seven years,
and it's going to make it harder to qualify for
a mortgage or get good interest rates or refinance later. So, yes,
(38:29):
letting it foreclose will absolutely affect your credit when buying
real estate. Um, you know, in terms of the paths
forward and I realize they're not any that are real
simple because I wouldn't use an exit company. I think
there's just a lot of, uh, you know, really difficult
situations out there where, you know, there's a lot of fraudsters,
a lot of people charge you a lot of high
(38:50):
fees and really don't do anything for you. I mean,
the best option, but it's they're hard to come by
is where you call the timeshare company and ask for
what's called the deed back program. Many companies now have
a deed back or a surrender program where you can
return it voluntarily. There's no foreclosure, no impact on your credit.
It's cleaner and faster. You'd want to start there. If
(39:12):
they don't have that, then you could try to sell
it or give it away. Even selling it for a dollar.
I mean, there are marketplaces where, you know, you can,
as an owner, list a timeshare for free. Uh, one
of them is the timeshare Users group. That's probably the
biggest one. Uh, and it's tug two. Tug the number 2.com. Um,
(39:38):
and they provide resale options and guides for owners trying
to exit without harming their credit. Um, you know, the
third option is negotiate a settlement to avoid foreclosure. So
if you're already behind, sometimes you can negotiate with the
lender to settle the debt for a lesser amount and
then close the account as paid slash settled. And that
(40:01):
again avoids the foreclosure notation, which is not ideal, but
better than a full foreclosure. On your credit, you'd only
want to allow foreclosure as an absolute last resort.
S7 (40:13):
Okay. My question on that, though, is from because I
just got off the phone with the foreclosure company and
they said that this doesn't the foreclosure does not go
on our record or credit one bit because it does
not have a loan against it. This is something that's
paid off that doesn't have any, you know, that's not attached.
(40:33):
So it's my understanding from what they told me, is
our credit would not be affected if it goes into
foreclosure since it doesn't have a loan attached to it.
S1 (40:44):
Hmm. Interesting. Yeah. Um, I mean, obviously I would have
them give that to you in writing just to make
sure that's not somebody who's ill informed. Um, because you
want to make sure that you're getting good counsel there. Uh,
but even then, I would just see what you can
do to avoid the classification being a foreclosure. I just
(41:07):
don't like that. Uh, you know, I would rather there
be some sort of arrangement that they would be willing
to give to you in writing that, um, you know,
they're willing to let this go. And, you know, maybe
you pay a certain amount to do that or something. But, uh,
the idea that they're calling it a foreclosure just doesn't
really sit well with me.
S7 (41:29):
That sounds. I agree with you. I don't like to
sound foreclosures either, so. Yeah.
S1 (41:34):
Uh, yeah. But at the end of the day, I mean,
they're going to have to you're going to have to
trust their counsel. I mean, you could always get an
attorney involved and just have somebody that is representing you, um,
and look it over just to, to verify and knows
the questions to ask. But, um, you know, if they are,
you know, giving you that promise, then, uh, you know,
I think the other approach is to say, great, can
(41:55):
I get that in writing? And, uh, you know, that's
always a better option. Listen, all the best to you, Derrick.
We appreciate your call today. And, uh, hopefully you can
get out of this quickly and without any harm to your, uh,
your credit. Thanks for your call today and for your
kind remarks about the program. Well, folks, that's going to
do it for us. Two next steps for you, if
you don't mind, before you start your weekend. One again,
(42:18):
we're doing a national research project. We're doing a survey
of Certified Kingdom Advisor clients. So if you're a client
of a and you're willing to give me ten minutes,
go to faith B-complex that's faith. And also just a
quick reminder, we're not quite yet. Faith is not funded
(42:38):
here at the end of the year, every gift wftv.com/give.
And we'll send you a copy in my new devotional
early next year for every gift. Thanks in advance. Faith
in finance is a partnership between Moody Radio and Faith vie.
To hear a Taylor, Josh and Dan today. We'll see
you next time.
We've checked the markets often, but how often do we
check our hearts? Hi, I'm Rob West. Most of us
approach investing with calculators, not character. But what if God
wants us to shape both? Today, Tim McCreadie joins us
to show how believers can approach investing as a spiritual practice,
aligning our portfolios and our hearts with God's purposes. Then
(00:30):
it's on to your calls at 800 525 7000. That's
800 525 7000. This is faith in finance. Live. Biblical
wisdom for your financial journey. Well, it's always a pleasure
to have my friend Tim McCready on the program. He's
head of global advisory at Bright Light, part of the
(00:52):
Eversource Wealth Advisors team. Tim, great to have you back.
S2 (00:56):
Always good to be with you, Rob.
S1 (00:57):
Tim, you've been helping us both at Kingdom Advisors and
here at Faith five. Build a theological framework for how
believers can develop a biblical worldview of investing. And the
article you wrote recently that flows out of that larger project,
it really jumped out at me. I want to unpack
that a bit today. Why do you think it's so
critical that we approach investing from a spiritual perspective?
S2 (01:21):
Well, Jesus said in Matthew six that our hearts follow
our treasure. Um, I think this means that where and
how we invest matters spiritually, not just because it's a
reflection of faithfulness, but because it's actually those investment decisions
are shaping who we're becoming as we seek to be
like Jesus. And so because of that, spiritual practices around
our investments can help to align our hearts with God,
(01:43):
not just our financial goals, but who he is. It
invites God into our portfolios, which helps us to grow
as stewards and disciples. Um, and ultimately, investing even becomes
a form of worship. Um, as we let it and
the decisions that we make shape our hearts towards him.
S1 (01:59):
Mhm. Yeah. That's well said. Uh you begin your article
by introducing the Ignatian prayer of examine uh, practice believers
have used for centuries. Tim. How does that help shape
the way we think about investing today?
S2 (02:15):
Yeah. So Saint Ignatius of Loyola, um, centuries ago, kind
of developed this daily examine as a practice of reflecting
prayerfully on our day, uh, repenting of sin, being aware
of God's presence, looking forward to his gifts and presence
with us tomorrow. One of the things that I and
others have been looking at is what it might look
like to apply some of these disciplines, uh, into our
(02:37):
everyday lives, but also into our investment portfolios. Uh, and
this this prayer of examine from an investor's perspective helps
us to move from just analysis to discernment, from control
to surrender. Uh, it invites God into that part of
our life, just the same way as closing our day
with a reflection of God's presence with us during the
day can help us to be very conscious of him
(02:58):
as we fall asleep.
S1 (02:59):
Tim, this is powerful. I mean, spiritual practices and disciplines
related to our investing. I mean, this is a brand
new idea for most believers and yet so powerful. And
I want to unpack it a bit more because you
begin that process with gratitude. What does that look like
for an investor in your view?
S2 (03:18):
Yeah. So for an investor gratitude, it quiets our hearts.
It helps us remember that investing is part of God's
generosity to us, his blessing to us. Uh, like the
daily examine, uh, when we look at and examine from
an investor's perspective, we start with gratitude. It helps us
notice God's provision before we look at any performance. It
reminds us that we're stewards of what he's entrusted to us.
(03:40):
It also reminds us, Rob, I think that true riches
are found in relationship as much as we might be
thankful for our portfolios. Yeah, here's what this might sound like. Rob. Uh, okay.
Heavenly father, thank you for your many gifts to me.
I recognize that my investment portfolio is one of those
gifts from you. You have entrusted these assets to my stewardship.
(04:00):
I invite you to speak to me now about my stewardship,
to encourage me, to challenge me, to remind me of
your goodness and steadfast faithfulness that I might draw closer
to you.
S1 (04:10):
Wow. Well, if we started with that prayer, Tim, I
suspect that would lead us down an entirely different path
when it comes to choosing our investments from that point forward,
wouldn't it?
S2 (04:23):
I think so, Rob. Yeah.
S1 (04:24):
Yeah. After gratitude, you moved to the next step. And
that is review. What does that mean for an investor
who's trying to discern God's presence in their portfolio?
S2 (04:34):
Yeah. So in the Daily Examine review is about looking
back through the day, remembering what we were doing and
how we felt, and sensing God's presence with us. For
an investor, I encourage investors to look at each line
of their portfolio with gratitude, with reflection, with thoughtfulness, just
pausing to look back and recognize where God has been
at work through our investments. This helps us to see
(04:55):
beyond numbers to the people, communities, the purposes that our
investment portfolios touch. And we might find both joy and conviction.
Places where God is pleased and where he is inviting
us towards change. Wow.
S1 (05:09):
This is incredible. We're going to continue the conversation with
Tim McCreadie, Head of Global Advisory at Bright Light, just
around the corner. How spiritual practices can transform your investing.
Stay with us. We'll be right back. Have you ever
(05:34):
thought about how spiritual practices could transform your investing? That's
what we're talking about today with my friend Tim McCreadie.
He's head of global advisory at Bright Light. Part of
the Eversource Wealth Advisors team. Tim has been spearheading a
project for us here at Kingdom Advisors and Faith fi
to build out a theological framework for how believers, including advisors,
(05:57):
can develop a biblical worldview of investing and apply it
to this daily practice. And you know, Tim, we're going
to jump back into this. This is so rich. But
at its core, I think we need to understand that
the purpose of investing is to supply capital to business,
which is to produce goods and services that should be
good and serve people. Right.
S2 (06:18):
Amen. Rob, I think investing is part of God's plan
for flourishing. It takes money that would otherwise not be
doing anything, and places it with businesses and companies that
can use it for flourishing.
S1 (06:28):
Yeah, that's exactly right. And you've really led the way
in so many ways around this whole emerging space of
faith based investing, which is just exploding right now. And
that's so exciting. Well, we're unpacking these spiritual principles set
this up for us. If somebody's just joining us and
perhaps take us back to the Ignatian prayer of examine.
S2 (06:49):
Yeah. So as a reminder, the Ignatian daily Examen is
this idea that at the end of the day, we
we pause and we reflect on God's presence with us
through the day. Uh, we express gratefulness and gratitude. Uh,
we reflect on where we've fallen short. We invite his
presence with us for the next day as we fall asleep.
And we've been thinking about what it might look like
as investors to adopt a similar practice around our portfolio.
S1 (07:11):
Well, we talked before the break about gratitude, a powerful
place to start. And then we talked about reviewing, uh,
but let's move into the next phase of this and
you move into repentance and renewal, which is a significant shift.
How might that sound in prayer for an investor?
S2 (07:29):
So perhaps as we review our portfolio, we sense conviction.
Maybe something feels like it's misaligned with God's desires. Perhaps
we realize as we rejoice over our portfolio, that we
have placed our security and our trust in it. Perhaps
we've made it an idol, taking God's place as our provider.
Perhaps we even realize that God might be asking us
to give more of it away. Repentance reminds us that
(07:51):
as believers, our trust is in God, not the market. Um,
that our ultimate source of security is him. And then
repentance doesn't stand alone. We we receive forgiveness and renewal.
And that points us towards joy and trust in God's
ongoing provision for us. We might pray something like, uh,
gracious Heavenly Provider, I invite you once again to rule
(08:12):
over all of my life, including the investment portfolio you
have entrusted to me. I'm sorry for where I have
allowed it to take your place in my life. Give
me the courage to take action where you have invited
me to do so. Give me confidence in and thankfulness
for your provision. Give me joy in following your plan
for my life and my portfolio. Confident that you are
(08:33):
always wiser and better than anything I could design on
my own. Help me be generous. Help me to trust you.
S1 (08:39):
Um. Wow. I love that. Now, once we've done the
inward reflection, Tim, you turn to the outward disciplines. And
that really begins with community, also with accountability. Why are
those so essential for Christian investors?
S2 (08:55):
So, I mean, the Great Commission invites us to to go,
to build community, to train, to disciple, to follow Jesus. Uh,
we aren't meant to do this alone. We're meant to
do this in community. We grow best in community. And
even though many of the spiritual practices we learn like this, uh,
investors examine might be done alone, we could also think
(09:16):
about how to live them out in community. Uh, and
certainly to take the learnings as we listen to God
into community, trusted friends can help us discern where money
may have too much hold on us. Um, if you
haven't shared your budget or your portfolio with a trusted friend, uh,
I'd encourage you to do so. It's confronting, but it invites, uh,
other voices into our into our lives. Tells us where
(09:37):
we might be going wrong. Small groups, classes, the faith community.
These can create safe spaces for these stewardship conversations.
S1 (09:45):
Um, Mhm. Yeah. Uh, Tim, this is undoubtedly one of
those areas we try to keep behind the curtain, so
to speak. What's the benefit. What's the promise for somebody
who's willing to be transparent in this area in your view.
S2 (09:59):
So the first thing is if I'm going to show
my budget or my portfolio to a friend, you can
bet that I've looked through it closely to find anything
that maybe my conscience is being pricked a little on
whether that really should be in there. Um, but the
second is we're inviting an independent voice, a voice that
can ask us, look, Tim, do you really need to
spend $20 a month on streaming apps? We want someone
(10:22):
who loves us, who cares for us, but who's willing
to give us that? That question. Uh, nothing wrong with
streaming apps, but maybe if I'm spending $200 a month
showing that to a friend might make me realize that
that's not the way that most people live. Uh, that accountability,
we need it in all of our lives. But anywhere
where we have a threat of an idol, we need
that accountability even more.
S1 (10:43):
Yeah. Boy. That's great. Tim, you also introduced something you
call fasting from market noise. Share that with us.
S2 (10:51):
So again, Rob, as we as we think about the
various spiritual disciplines that Jesus gives us prayer, fasting, contemplation, reflection,
time with God, Christian community. We wanted to think about
this fasting one. Um, we are surrounded by constant market data.
I don't know about you, but my 401, which I
hope to not need for at least another 25 years,
gives me a daily update on my balance. My stock
(11:14):
portfolio might update by the minute. All of this information
gives me the illusion of control, but really it's just
feeding and driving my anxiety. If I'm up, I have
a good day. If I'm down, I have a bad
day for money that I don't need for 25 years.
Taking a break from all of this information helps us
remind us that God is in control, and instead of
chasing security through information, we can rest in God's provision. Again,
(11:37):
kind of Matthew six Luke 12. Who of you by
worrying can add a single hair to your head? Uh,
who of you by worrying about your investment portfolio can
add a single cent to its balance. Now, of course,
we need to make wise decisions with the help of
our financial advisors. I just think a lot of the time,
we don't need this daily market noise that that drives
a lot of our anxiety.
S1 (11:57):
Yeah. I couldn't agree more. What an opportunity to turn
down the noise of this world and turn up God's
voice in our life. Tim, finally, uh, you highlight service,
turning our perspective from what we possess to how we
can serve and bless others. What can that look like
for an investor?
S2 (12:15):
So as an investor, we we have the privilege of
a portfolio to invest. And often that gives us experience
that might help equip others, uh, teaching a budgeting class, uh,
mentoring younger people on how to think about money, uh,
serving on a church finance committee. These, uh, activities that
can often feel mundane can be very profound. Rob, I
(12:35):
for several years had the privilege of teaching, uh, in
a gap year program at one of the seminaries in Sydney.
And it astounded me how ill equipped many of these
students were when it came to basic budgeting or understanding
things like credit cards or payday loans and things like that.
For investors who understand some of this, it can be
a real way to serve. It brings this heart of
wisdom and generosity that God wants us to have with
(12:58):
our investment portfolio, and helps us to equip others. And
I think that when we serve, this stewardship idea becomes contagious.
It transforms our investing from something that we just do
for ourselves to something that equips us to serve others.
This is where faith meets action in community.
S1 (13:15):
Wow. That's powerful. Just about 45 seconds left. Tim. Tie
a bow on this for us. How can these spiritual
practices form a holistic way of investing that honors the Lord?
S2 (13:26):
So together, I think when we bring these ideas like
examine Prayerfulness fasting, it forms this rhythm of worship through
our financial eyes, pointing us towards Jesus Christ as the
true provider and owner of all things. And as we
do this, it transforms us. Because investing is faithfulness. It's
a way we're faithful. It's also a way in which
we grow as disciples. I'm convinced from Jesus words and
(13:49):
almost 25 years of working in this field, that faithfulness
in investing is deeply formative for our whole lives as
followers of Jesus.
S1 (13:57):
That was incredible, Tim. What a great reminder that a
biblical approach to investing isn't measured only by returns, but
by spiritual formation. Thanks for being here, my friend.
S3 (14:08):
Great to be with you, Rob.
S1 (14:09):
Our guest today has been Tim McCready, head of global
advisory at Bright Light, part of the Eversource Wealth Advisors team.
All right. Your calls are next. The number 800 525 7000.
We'll be right back.
S4 (14:34):
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 (14:57):
So thankful to have you with us today on Faith
and finance. Live. I'm Rob West. All right. I got
a favor to ask of you. If you're a client
of a certified Kingdom advisor, you've been listening for years
and you reached out to connected with have a relationship
with a seeker. We need your help. We're doing a
national research project to really have the empirical data that says,
(15:19):
here's the outcomes you can expect when you work with
a certified Kingdom advisor. By evaluating clients through a survey,
those who are both non clients, clients of advisors who
don't have the designation versus those who are with a seeker. Well,
all the ones who are with a non-k. We've got
all that we need. But we're 200 surveys away from
(15:42):
having what we need. For those who do have a
c k. So if that's you, I need your help.
If you've got ten minutes, I'd love for you to
go to Faith B-complex and be a part of this
research study. All of the information will be in the aggregate.
Your information will be held anonymously. It won't be shared
with your advisor. But if you have a certified Kingdom
(16:05):
Advisor that you work with, you're a client and you'd
be willing to take this survey, we'd be grateful. We're
looking for 200 more faith. Com is the place to go.
And thanks in advance. I know you probably get asked
to do surveys all the time, including those political ones,
but this one's a little different, and I promise it'll
be worth it. All right. In the news today, gasoline
(16:27):
prices in the US have fallen to their lowest level
since 2021, offering a bit of relief just as winter
and holiday spending begin. The national average of regular gas
hit about $2.95 a gallon. That's as of December 30th.
Excuse me. December 1st. That's according to data from GasBuddy.
(16:48):
That marks the cheapest rates Americans have seen in more
than four years. Several factors are behind the drop. Crude
oil production has increased, and there's been fewer disruptions at
Gulf Coast refineries, a relief after recent years of volatile prices.
As a result, this downward pressure on fuel costs may
(17:08):
slow or even reverse sharp increases in grocery and retail
prices that often follow when transportation and shipping costs rise. Now,
what does this mean for your budget? Well, first, lower
pump prices of course, give households immediate breathing room more
cash for groceries, bills, holiday expenses or debt payoff. Second,
(17:30):
over the next few weeks, stable or falling fuel costs
could help moderate inflation, pressure on broader goods and services,
especially groceries. And then thirdly, for families and retirees on
fixed income or tight budgets, this could mean extra margin
useful for building savings or handling unexpected costs. In short,
(17:53):
while the economy still faces challenges, this drop in gas
prices offers a little financial relief. That's, of course, good
news for anyone juggling bills or retirement planning, or just
general household budgets. Stress. Still, these times of inflation call
for us to be extra mindful of our budgets and
prepare for uncertainty. Remember, Proverbs six reminds us of that
(18:16):
aunt who considers her ways and is wise without having
any chief or officer or ruler. She prepares her bread
in the summer and gathers her food in the harvest.
We should take note of that wise approach. All right.
We'll begin taking your calls and questions here in just
a moment. We do have some lines open. So if
you've got a financial question today. Today's a great day
(18:37):
for you to call 800 525 7000. Again that's 800
525 7000. Let's go to Indianapolis, Indiana. Gary. Go ahead.
S5 (18:48):
Hey, Rob. Um, first off, I wanted to thank you
for doing what you're doing. There's a lot of us
out here, um, you know, young and old, that we
just rely on everybody else to take care of our
financial stuff, and we don't have a clue. Um. I
don't have a clue. I was you mentioned the. And
I've been a grasshopper all my life, and, um, these,
(19:10):
these last, you know, but my kids had. We had
a good life, I can't complain. Um, but the last
few years, um, I finally found the Lord, and things
have really changed dramatically. Um, which is no surprise. Um, but,
you know, I've got a couple, um, um, old 401
(19:33):
that I needed to roll over for a long time,
and I haven't done it. Well, the last two years.
The first time in my life I've been able to
squirrel away a bunch of money. Um, you know, I've
gotten such a position. I don't owe anything. I don't
owe anybody anything. Um, except a car insurance and, you know,
a few little, you know, normal things. Um, but, you know,
(19:54):
I'm I'm I'm. I can save $3,000 a month now.
I've never been able to do that. Yeah. Um, but
this 400 1KI went to the bank and I said, hey,
I need to roll these over. What do I do?
And he gave me a few, 2 or 3 options. Um,
you know, all of them were, you know, okay. Um,
one of them was seemed a lot better, but the
one that was a lot better was an American balanced fund.
(20:17):
You ever heard of that?
S1 (20:19):
I sure have.
S5 (20:19):
An American balanced fund, um, through capital Group. And it
was like a 3.5% upfront boom. One time fee. Yeah,
that's a chunk of change. Yeah. And then it was
like a one or a 1.5% per year. Um, you know,
management fee. And I thought, man, that sounds kind of counterintuitive.
You know, um, I can only put so much I
(20:41):
can roll over everything on these two checks because it's
a rollover. But I still got a bunch of money
in the bank that I want to add to it.
But you said, you know, in January you can put
16,000 in there because of your age. You can you
can make those contributions. Um, so I wouldn't have to
pay that 3.5% on the 16,000. But what I'm rolling over,
(21:03):
I mean, those normal fees, I've never seen a fee
like that on my 401 K statements.
S1 (21:09):
Yeah. No you wouldn't. So these are load fees for, um,
you know, a particular class of mutual fund that has
a front end load. Uh, those can go as high as,
you know, almost 6%. Uh, the American Funds is probably
an A share, which is that up front load. And,
you know, you may have invested enough to get a
(21:30):
reduced break point. Let's do this. I want to kind
of break down the various options for you in terms
of how you should think about investing going forward, because
it has a lot to do with who's making the
decisions and then how you get charged or how they
get paid for their work. And there's a variety of approaches,
and I want to make sure you have a good
feel for for what those are. So Gary, stay right there.
(21:52):
We'll pick it up on the other side of the break.
We'll be right back on Faith and finance live. Great
to have you with us today on Faith and finance live.
I'm Rob West. We're taking your calls and questions today.
That number 800 525 7000. That's 800 525 7000. We'd
(22:17):
love to hear from you today. We do have some
lines open. Uh, our team is ready to take your call. Uh,
before the break, we were talking to Gary in Indianapolis.
Gary got a later start with his retirement savings and
but he's been as of late able with quite a
bit of margin surplus each month to sock away a
good bit into his retirement account. And he was surprised
(22:39):
to see, you know, the various approaches to how he
was having to pay for these investments. One was a
$450 upfront flat fee and then a 1% a year.
Another one, an American's Fund balanced mutual fund, quoted him
an upfront charge of of 3.5%, which is a front
(22:59):
end load. Gary, let me unpack the various ways. You know,
you can be charged in terms of how you invest.
And I'll break these down into two categories. The first
is when you work with a financial advisor, and the
second is when you do it yourself. So when you
work with a financial advisor, there's three main ways advisors
get paid for helping you invest. The first is what's
(23:20):
called an AUM fee. Assets under management. So it's a
percentage of the assets. This is most common today. That
wasn't the case, you know, a couple of decades ago.
It is the norm today. And basically how it works
is you pay a percentage of your investments each year,
usually around 1%. It can go higher than that if
(23:42):
you have a smaller account. It typically goes lower than
that as you get up into, you know, beyond $1 million,
you might come down below 1%, but somewhere between three
quarters of a point and 1.5% a year is probably
what you're going to be paying, and you get ongoing guidance.
Often they will roll the retirement planning into that. They'll
(24:04):
certainly take discretion over the investment management. You have someone
to call, you know, when life changes, it's easy to understand.
And your advisor is incented because they only get a
raise when your account grows and it eliminates all the
upfront commissions. The second is in fact a commission based
advisor who either gets a front end load, like you mentioned,
(24:26):
that 3.5%, which was probably discounted. A lot of times
it's it's higher than that 5% or more or a
back end load where there's no upfront fee. You pay
a declining sales charge if you sell within 6 or
7 years. And basically they get paid if you leave early,
but it's on the back end. And then there's what's
(24:48):
called a level load where it's not up front or
back end, but it's, you know, embedded in the fund
every year. It's kind of a pay as you go.
That might be that 1% charge you were talking about.
And that's usually with the C shares. There's A shares
B shares and and C shares. The benefit of the
Commission might be for a smaller account without that ongoing
(25:10):
advisor bill. The downside is and it's not my favorite approach,
it can be expensive. The fund choices are limited, and
the advisor is paid by getting you to make a
new transaction, which doesn't necessarily, you know, put the emphasis
on just serving you at the very best product. And
then the third approach is a flat fee or hourly
(25:32):
planning that's typically for, you know, just the straight advice
without the asset management. Now when you do it yourself
without an advisor, you typically would use something called a
no load mutual fund, which are most index funds today
where there's no commissions, no no front end, no back end,
no nothing. Uh, and then you just have an expense
(25:54):
ratio built in. And that's usually, you know, the Fidelitys
and the Schwab's. That's the lowest cost option. You could
also have a robo advisor where it's basically a computer
algorithm that's helping to build the portfolio for you based
on the questions you answer. And then there's what's called self-directed,
where you're essentially buying and selling yourself stocks bonds, mutual funds.
(26:17):
So those are kind of the the various approaches. And
if you're with an advisor, I would say a better approach,
especially as you build more and more wealth, would not
be the commissioned approach that it sounds like you've been in,
but probably moving to that percentage of assets under management approach,
which would be what most advisors do today. But give
(26:39):
me your thoughts on all that.
S5 (26:42):
Um, so if they're if they're the one I picked
was the one he he said was going to be,
you know, the I want to say it was around 3.5%
up front, flat fee and then 1% per year. That's
the one I chose because it, it you know, at
my age I probably shouldn't go aggressive, but I'm going
(27:04):
a little more aggressive than probably I should. Um, I
really got a good feel about the AI and some
of this other stuff. Do I like what AI does? No,
but I think it's going to make some money. Um, um,
you know, the the, the 3.5% up front and a 1%.
I just thought that was a bit much, but I
liked I liked the return, I liked, um, you know,
(27:27):
the vehicles that was using, um, but, you know, that's
why I'm calling you is because I don't know if if,
you know, there's there's something out else out there that
I'm not experienced in this. Uh, like I said, I
know how to spend money. I don't know how to
save it. Just saving stuff is new to me.
S1 (27:44):
Well, I don't really like the what you're describing. I mean,
if you would have called me before you bought it
and said, Rob, should I get into a mutual fund
where I'm going to pay a 3.5% upfront load, and
then I'm going to pay 1% a year, and I
don't have an advisor who's overseeing this. Basically, he's just
kind of said, yeah, I like this, but I'm making
the decisions. I would say that's a very expensive mutual fund.
(28:04):
You could find other funds, either mutual funds or exchange
traded funds that give you the exposure to the, you know,
asset classes and sectors that you want. If you want
to be tech heavy, even AI, you can recreate that
in a much less expensive approach with exchange traded funds
and and other low load or no load mutual funds. Um, my.
(28:29):
So that wouldn't have been the way I would go.
I would have said, let's do that another way. But
I think to your latter point about, hey, I don't
really know what I'm doing at this point and, you know,
this is not my expertise. Um, that's where most people
are at, which is why I would say, go get
a certified Kingdom advisor who can sit with you, do
the discovery, understand your income needs, your your risk tolerance,
(28:53):
your age, your goals and objectives, where God is taking you,
how much you no longer. You're planning to work all
those things and then let that advisor build and manage
on an ongoing basis the investment portfolio. I would say,
you know, that would be the approach I would rather
you take, rather than you making the buy and sell
decisions and paying these high loads.
S5 (29:16):
Yeah. Well, the good news is I haven't signed anything yet.
I'm still waiting. They. He directed me to call my,
you know, the, you know, core bridge and these other
people that have my money and have them, um, do
a rollover, cut me the check or cut them the
check in care of whoever with me as the, um,
(29:38):
in my in care of myself. And then they give
me some kind of special envelopes, and I don't understand
all that either. But then I mail those checks, and
then he does all the work, and then I go sign.
So I haven't done anything yet. Yeah, I haven't got
the text. So yeah, I can well, you know.
S1 (29:53):
And I wouldn't even, I wouldn't even like you to
do that. I mean, what I would do is I'd
pick the adviser that you want to work with and
then let the adviser, you know, have you fill out
the paperwork so that the assets go directly from where
they are now, directly into your new account that the
adviser is managing? You don't want to touch it because
(30:14):
you don't want to take a chance that it's somehow,
you know, seen as a distribution to you, which is taxable.
You want it to go right from where it is
today in the 401 K to your new IRA, wherever
your new advisor custodies his or her assets. It never
comes to you. It's a direct rollover, and therefore there's
(30:34):
never any question about whether there's a taxable event that
has occurred. And then from that point forward, you've already
done the discovery meetings and the advisors off to the races,
you know, to to manage the money. Let's do this.
I want to send you a book. I also want
to make sure you don't have any other questions. So
stay on the line. We'll talk a bit more off
the air. We'll be right back with Faith and Finance Live. Hey,
(31:03):
thanks for joining us today on Faith and Finance Live.
Big thanks to Gary for calling in. Gary. I didn't
get a chance to tell you. I'm so appreciative of
just your kind remarks about the program and really grateful
to be able to visit with you today. Thanks for
your call to Pennsylvania, Diane. Go ahead.
S6 (31:20):
Hi. Thank you so much for taking my call. Uh,
my story is I'm 71 years old, never married, worked
my entire life, and I rented all throughout life. And
in 2020 4th October, I had the opportunity to buy
into a retirement community here in Lancaster. So I did not,
(31:45):
of course, have a house to sell or anything like that.
So I withdrew from my IRA where I put all
my money. And so now, um, two weeks ago, I
got a notice from Social Security. My new rates for
next year is based on the modified adjusted gross income
(32:06):
of $183,692. And that blew me away, because usually I
have 17 or 18,000, and my Social Security payments up
for next year have gone down $340.40 a month, compared, um,
(32:26):
to to, and it'll total like $4,084 a year for
the year. And it's like, I can't believe this because,
you know, it's like it's so upsetting. I don't know
how I'm going to make it.
S1 (32:41):
Yeah, well, the good news this is is only temporary,
but I realize that it's a big deal. And you're
trying to live on a fixed income. And and this
has put a real strain on that. And I wish
I would have been able to talk to you before
you took the withdrawal so we could have spread it out.
But I certainly understand, you know, you didn't under understand
what the implications were. Uh, what happened is tax and
(33:03):
Medicare cap calculations kicked in because of the large IRA withdrawal.
So the The 118,000 IRA withdrawal is fully taxable. You
normally have about 17 or 18,000 in income, but that
particular year of the withdrawal, your income jumped to 183,000
(33:25):
because you used to your IRA to pay the retirement
community buy in. And that big increase pushed you into
the highest tier for both taxation of your Social Security
and what's called a Medicare Irma charge, an income related
Medicare premium. So together they those can easily take 3
(33:49):
to 400 a month from your Social Security check. So
that $340 reduction is almost certainly higher Medicare premiums being
withheld plus the higher tax withholding. So you're not losing benefits.
You're just losing the the net cash flow because your
income spiked. This is a one year problem only. It was,
(34:12):
you know, caused by that IRA withdrawal. Once your income
goes back down, your Medicare and your tax withholding should
also go back down. But usually with a one year
lag because Medicare looks at income from two years prior.
So high income in 2024 means higher Medicare premiums in 2026.
(34:34):
So once your income drops again, then the premium should
return to normal. Now, what you can do is because
the income spike was one time a life changing event,
you can file a form, uh, and request a reduction
in your Medicare premium. Uh, qualifying life changing events include
(34:55):
a retirement, a loss of income, a change in pension,
and a large one time withdrawal will often qualify when
it's tied to a move or a long term care situation.
Appeals are very common and often approved. So I would consider, uh,
you know, doing that and, and reaching out to the
(35:16):
Social Security Administration in that regard. Okay.
S6 (35:20):
Now, um, to I should have mentioned, I did um,
I received this Saturday two weeks ago. Monday morning I
did go to the Social Security office, and they told
me they gave me paperwork on life changing events, which
this does not qualify. So they said, I've just got
to get through the year. And I even went to the, um,
(35:42):
House of Representatives here in Lancaster and, um, met with
them too. And they're basically saying the same thing. But, um,
the representative did send a letter back to me today
stating that he has it under review with Social Security again. So.
S1 (36:00):
Okay. Well that's good. I mean, let's let's make that
a matter of prayer. Uh, the good news is, Diane,
regardless of how this comes out and let's say, you know,
maybe they review it in your favor and it happens
right away, even if it doesn't eventually, you know, once
we get through this, this one year of this, they're
going to see that your income went right back to
(36:21):
what it was. And, you know, this was a one
time spike. And then everything will reset. I realize you're
going to have to make it until that point. And
so let's let's hope and pray that this additional, uh,
review that's happening will result in a decision in your favor. But, uh,
this is temporary. And and so maybe you need to
reach out to your church, see if they could help or, um,
(36:43):
you know, some other mechanism. But that's essentially the explanation
for why it's happening. Uh, all the best to you, Diane.
I appreciate your call today. And if we can help
further along the way, don't hesitate to reach out. God
bless you. Uh. Nashville, Tennessee. Derek, how can I help?
S7 (36:59):
Hey, there. Thank you, by the way, so much for
what you do. We are very grateful for that. Just
wanted to mention that.
S1 (37:04):
Yeah, I appreciate that.
S7 (37:06):
Um, my question for you is, uh, we inherited a
time share, and we are not using it, and so
we've been paying our taxes on it, but we've been
defaulting on the fees because we're not utilizing it, so
it's gone into foreclosure on purpose. We are kind of
purposely letting it go because in our, you know, lack
(37:28):
of information of how this whole process goes with timeshares,
because we don't know much about them is the value
of it seems to be anywhere between maybe only like
1000 to $3000, but these fees are around $2,600. So
in essence, it wouldn't make sense for us to hold
on to it to pay these fees if we're not
(37:48):
utilizing it. So we're thinking the best thing to do
is have it go in foreclosure. But my concern is
as far as getting a loan in the future, does
that foreclosure on our record, uh, have any bearing in underwriting?
S1 (38:05):
Yeah, I mean that that really can hurt your credit.
So even though it's quote just a time share, the
lender reports it the same way they would report a
home foreclosure or repossession or a major delinquency. Um, you know,
a foreclosure typically stays on your credit report for seven years,
and it's going to make it harder to qualify for
a mortgage or get good interest rates or refinance later. So, yes,
(38:29):
letting it foreclose will absolutely affect your credit when buying
real estate. Um, you know, in terms of the paths
forward and I realize they're not any that are real
simple because I wouldn't use an exit company. I think
there's just a lot of, uh, you know, really difficult
situations out there where, you know, there's a lot of fraudsters,
a lot of people charge you a lot of high
(38:50):
fees and really don't do anything for you. I mean,
the best option, but it's they're hard to come by
is where you call the timeshare company and ask for
what's called the deed back program. Many companies now have
a deed back or a surrender program where you can
return it voluntarily. There's no foreclosure, no impact on your credit.
It's cleaner and faster. You'd want to start there. If
(39:12):
they don't have that, then you could try to sell
it or give it away. Even selling it for a dollar.
I mean, there are marketplaces where, you know, you can,
as an owner, list a timeshare for free. Uh, one
of them is the timeshare Users group. That's probably the
biggest one. Uh, and it's tug two. Tug the number 2.com. Um,
(39:38):
and they provide resale options and guides for owners trying
to exit without harming their credit. Um, you know, the
third option is negotiate a settlement to avoid foreclosure. So
if you're already behind, sometimes you can negotiate with the
lender to settle the debt for a lesser amount and
then close the account as paid slash settled. And that
(40:01):
again avoids the foreclosure notation, which is not ideal, but
better than a full foreclosure. On your credit, you'd only
want to allow foreclosure as an absolute last resort.
S7 (40:13):
Okay. My question on that, though, is from because I
just got off the phone with the foreclosure company and
they said that this doesn't the foreclosure does not go
on our record or credit one bit because it does
not have a loan against it. This is something that's
paid off that doesn't have any, you know, that's not attached.
(40:33):
So it's my understanding from what they told me, is
our credit would not be affected if it goes into
foreclosure since it doesn't have a loan attached to it.
S1 (40:44):
Hmm. Interesting. Yeah. Um, I mean, obviously I would have
them give that to you in writing just to make
sure that's not somebody who's ill informed. Um, because you
want to make sure that you're getting good counsel there. Uh,
but even then, I would just see what you can
do to avoid the classification being a foreclosure. I just
(41:07):
don't like that. Uh, you know, I would rather there
be some sort of arrangement that they would be willing
to give to you in writing that, um, you know,
they're willing to let this go. And, you know, maybe
you pay a certain amount to do that or something. But, uh,
the idea that they're calling it a foreclosure just doesn't
really sit well with me.
S7 (41:29):
That sounds. I agree with you. I don't like to
sound foreclosures either, so. Yeah.
S1 (41:34):
Uh, yeah. But at the end of the day, I mean,
they're going to have to you're going to have to
trust their counsel. I mean, you could always get an
attorney involved and just have somebody that is representing you, um,
and look it over just to, to verify and knows
the questions to ask. But, um, you know, if they are,
you know, giving you that promise, then, uh, you know,
I think the other approach is to say, great, can
(41:55):
I get that in writing? And, uh, you know, that's
always a better option. Listen, all the best to you, Derrick.
We appreciate your call today. And, uh, hopefully you can
get out of this quickly and without any harm to your, uh,
your credit. Thanks for your call today and for your
kind remarks about the program. Well, folks, that's going to
do it for us. Two next steps for you, if
you don't mind, before you start your weekend. One again,
(42:18):
we're doing a national research project. We're doing a survey
of Certified Kingdom Advisor clients. So if you're a client
of a and you're willing to give me ten minutes,
go to faith B-complex that's faith. And also just a
quick reminder, we're not quite yet. Faith is not funded
(42:38):
here at the end of the year, every gift wftv.com/give.
And we'll send you a copy in my new devotional
early next year for every gift. Thanks in advance. Faith
in finance is a partnership between Moody Radio and Faith vie.
To hear a Taylor, Josh and Dan today. We'll see
you next time.
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