December 4, 2025 • 42 mins
When two faith-based credit unions come together, the goal isn’t just greater size—it’s greater Kingdom impact. That’s the story behind the newly rebranded AdelFi Christian Banking. On the next Faith & Finance Live, Rob West and Aaron Caid share how this merger came together, what the new brand represents, and how it strengthens Christian banking. Then, it’s your calls. That’s Faith & Finance Live, where biblical wisdom meets today’s finances, 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):
A new name often marks a new season. And that's
exactly what's happening at Adelphi Christian Banking. Hi, I'm Rob West.
When two faith based credit unions come together, the goal
isn't just greater size, it's greater kingdom impact. That's the
story behind the newly rebranded Adelphi Christian Banking. Erin Kaye
joins us to share how this merger came together, what
(00:31):
the new brand represents and how it will strengthen Christian
banking for years to come. Then it's on to your
calls at 800 525 7000. This is faith and finance. Live.
Biblical wisdom for your financial decisions. Well, it's always a
conversation about faith as much as finance. When Aaron Kaye
(00:51):
joins us, he's the chief marketing officer at Adelphi Christian Banking,
still a not for profit financial institution and a proud
underwriter of this program. Aaron, great to have you back.
S2 (01:02):
It's great to be back. Rob.
S1 (01:04):
Aaron, this is a significant moment for both organizations with
the rollout of a new name and brand. So introduce
us to Adelphi Christian Banking. How did this new identity
come together and what does it represent?
S2 (01:18):
Well, our new name and identity are a visual representation
of what we desire to accomplish with the merger of
Adelphi and Christian Community Credit Union. It represents a union
of the best of both credit unions and honors the
legacy and members of both. The root of our name
is Adelphos, which is used over 300 times in the
New Testament to refer to brothers and sisters in Christ.
(01:39):
And the staff of both credit unions, truly and our members,
our brothers and sisters in Christ, coming together to build
a financial institution that is centered on Christ and dedicated
to advancing God's kingdom. And the moniker Christian banking is
a bold declaration of who we serve. As for timing,
we completed the merger on December 1st. For the next
(01:59):
few months, you'll see both brands in the marketplace. The
rollout of Adelphi Christian Banking will take place over the
course of 2026, with notable milestones including the launch of
a new website in Q2 and an enhanced digital banking
experience in Q3.
S1 (02:14):
Wow, this is really exciting. So, Adelphi and Christian Community
Credit Union coming together as Adelphi Christian Banking now, Aaron.
Every merger, of course, brings unique strengths to the table.
What stands out to you about each organization and how
will bringing them together create something really special and even stronger?
S2 (02:34):
Well, both Christian Community Credit Union and Adelphi are Christ
centered financial institutions with shared values, complementary strengths, and together
we bring over 125 years of ministry focused experience. Wow.
Adelphi tithes 10% of its earnings to Christian charities and
mission sending agencies, for its part, gives a portion of
(02:57):
every swipe on its credit and debit cards to Christian
ministries over $6.5 million to date. Together, we will amplify
our giving increasing kingdom impact. Yeah. And with our union,
we will form the nation's largest Christian credit union, creating
a digital forward Christian banking experience that honors God and
meets members wherever they are in their financial journey. And
(03:18):
this merger also expands our lending capacity for churches, ministries
and Christian businesses and opens new opportunities to support gospel
centered causes and fuel Kingdom growth.
S1 (03:28):
Wow. Yeah, it just seems like putting these two organizations
together means so much for not only the kingdom, but
also for those that will be using this as a
banking institution. Now, you've said this moment is significant for
the broader Christian banking community. So how do you see
this merger strengthening the industry and its influence in the
(03:50):
years ahead?
S2 (03:51):
Well, Christian banking is a fairly small industry, And to
be frank, most Americans don't even know that a Christian
banking solution exists. Yeah. Thus, by merging, we're aligning our
resources to create more opportunity for awareness, growth, and kingdom impact.
Adelphi Christian Banking is now the clear leader in this space,
and we're just getting started. So we desire to be
(04:13):
the go to financial solution for Christ followers who seek
to align their finances with their faith and steward God's
resources to his glory.
S1 (04:21):
That's really helpful. Aaron Christian banking isn't something you come
across every day. Would you say it's a bit countercultural?
S2 (04:29):
Well, yeah. We've seen a major market shift among Christians
who are just plain fed up with how their secular
banks use their funds and the causes they support. They
instead want the resources God has entrusted with them to
be stewarded well and to honor him. So we're boldly
stating that there's a quality option to unite your Christian
faith with your finances, a place where your funds are
(04:49):
stewarded for kingdom impact and gospel expansion. These principles contrast
greatly with the worldly priorities of our culture. So therefore,
banking with your Christian values could be considered countercultural.
S1 (04:59):
Yeah, that's well said. Aaron, really excited about this merger.
Thanks for sharing the big news.
S2 (05:04):
Thank you. Thanks for having me, Rob.
S1 (05:06):
Our guest has been Aaron Cade with Adelphi Christian Banking.
It's clear this new identity reflects a unified vision. And
what an opportunity for you. To learn more, go to
faith banking. That's faith. We'll be right back.
S3 (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 situation.
S1 (05:58):
Great to have you with us today on Faith and
Finance Live. Again, that website is faith.com/banking. If you want
to learn more about the combination of Christian Community Credit
Union and Adelphi as the new significantly by a lot largest, uh,
Christian banking solution in the country. Adelphi Christian banking. All right.
(06:21):
I've got a favor to ask before we dive into
the questions today. And by the way, uh, now's a
good time to call. So if you do have a question,
call 800 525 7000. That's 800 525 7000. All right.
To that favor. If you, uh, are a client of
a certified Kingdom advisor. So I know a lot of
you listen to this program, uh, over the years have said, yeah,
(06:44):
I want an advisor who shares my values and has
been trained to bring advice rooted in a biblical worldview
that is professional and competent, but aligns with the heart
of God in Scripture. Uh, you've reached out to and
connected with a certified Kingdom advisor. We hear from you
all the time. You say, I'm so thankful that I
found a CX in my area. Well, we are doing
(07:06):
a national research project, and we're studying the impact of
advice from a traditional advisor versus advice given by a
certified Kingdom advisor. And we're doing that both with advisors.
So we're surveying through this national research project. We're surveying
(07:26):
advisors who are not sikayet. And then we're doing the
same survey with the Kas. And we're going to compare
and contrast the outcomes and the fulfillment and really just
how it's impacting their work and their life and their
planning outcomes and the topics they deal with and the
intergenerational communication, all those issues. But we're also conducting a
(07:47):
survey directly with clients. And so we're surveying those who
are currently with a certified Kingdom advisor and those who
are not. Now for the non the clients of of
an advisor who is not a CX, we have reached
all that we need for that, but we are still
looking for some folks, a couple of hundred, uh, over
(08:10):
the next month, uh, to complete the survey, if you
are a client of a certified Kingdom advisor. So if
that's you, you're like, yeah, I've got one of those,
and you'd be willing to give us ten minutes of
your time for this anonymous survey that will not be
shared with us individually, and it will not be shared
with your advisor individually. It's all anonymous. Then I've got
a link for you. I need you to go to faith.
(08:35):
That's faith. Again, it'll take you 10 to 12 minutes.
And if you are an active client of a certified
Kingdom advisor and you'd be willing to complete it. I'm
so excited about what we're going to uncover just as
we further study. I mean, we know anecdotally the impact
of you being with a certified Kingdom advisor, but we
(08:56):
want to look at that in the aggregate and really
have some, uh, some data that we can trust that, uh,
you know, with a research project, uh, you know, that
that really meets all the standards, uh, for a really thoughtful, uh, project.
So that's what we're doing, the website again, faithfully. And
if you would, uh, join that, we would be very,
(09:18):
very grateful. All right. We're going to begin taking your
calls here in just a moment. That number 800 525
7000 again. That's 800 525 7000. We'd love to hear
from you today. Uh, in the news today, uh, there's
a lot being talked about related to the Trump accounts.
You might say. Wait a minute. What is that? Well,
(09:39):
I'll get to that. But first, what's, uh, what's making
news this week? Is that tech CEO Michael Dell and
his wife, Susan. So think Dell computer. Yeah, that Michael Dell,
he just pledged $6.25 billion with a B on giving
Tuesday to help jump start these new children's savings account.
(10:01):
Now their gift could enable about 25 million kids here
in the United States, ages ten and under, that were
born before January 1st, 2025, and living in moderate income
ZIP codes to receive a $250 deposit to begin saving
for the future. Now, these Trump accounts function like long
(10:24):
term investment IRAs for kids starting July 4th, 2026. You
know what that date is? Families can contribute up to
$5,000 a year, and newborns from 2025 to 2028 will
automatically get a $1,000 government deposit. Now the money grows
(10:45):
tax deferred and can later be used for education. But
it goes beyond that job training, a first home, even
starting a business. So the Trump accounts. And by the way,
if you want to learn more you can go to
Trump accounts. Gov to read up on this. What is
already in place is the children that are born between
January 1st, 2025 through the year 2028. They're going to
(11:09):
get that government funded Trump account with a one time
$1,000 deposit. And then beginning July 4th, 2026, that's where
families can begin adding to that $5,000 a year, what
Michael Dell has enabled and you'll see it Trump accounts.gov.
They're actually asking for other business owners like Dell. Those
(11:30):
who are very well off. Mr. Dell would be in
that category uh to pledge like he has to actually
expand this beyond newborns to those ten and younger. Uh, that, uh,
that were born prior to January 1st, 2025. Now they're
not going to get a thousand like those born after
(11:51):
January 1st, 2025, but they are going to get 250,
but it's going to create the account and then allow
mom and dad and grandparents to come in and continue
to fund it. So a lot we're learning about this.
This is just remarkable. I mean, can you imagine a
$6 billion gift to be able to fund these accounts
for these children, go to Trump accounts.gov. We're also hearing
(12:14):
one other thing. And this is just phenomenal, is that
donor advised funds are going to be permitted to contribute
to these accounts. And this is just unheard of. Uh,
you know, donor advised funds. We talk about those often.
It's one of my favorite giving tools where you put
money or assets in, you get the immediate deduction and
then you can recommend grants out of it. Well, normally
(12:36):
that can only go to a 501 C3, including your
church or another ministry. But what we're hearing is that
the legislation is going to allow contributions out of a
donor advised fund, and one of those approved entities beyond
a 501, C three is a Trump account. And so
they'll be able to be funded up to 5000 a
year through 2028 out of a donor advised fund. Incredible. Um,
(13:01):
there'll be a lot more on this in the days ahead.
We'll be covering it between now and July 4th, 2026.
But just something to have on your radar, because undoubtedly
it's going to affect a lot of our listeners and
you're going to want to know about it again, that
website Trump accounts.org. Uh, let me just wrap this up.
And by the way, after the break, we will be
(13:21):
taking your calls and questions. So if you have one
800 525 7000. If you want to open a donor
advised fund, the place to do it in my view,
is the National Christian Foundation. And here's why. The money
gets granted out by you to the the 501 C3
at your direction. The IRS says as long as their
(13:44):
501 C3 they qualify, but the donor advised fund sponsor
could shut it down if for some reason they had
a list of ministries that they didn't agree with. Doesn't
happen often. Could it happen? Absolutely. So that's why I
think being aligned with the donor advised fund sponsor who
understands your Christian values is really important. And that's why
(14:05):
the National Christian Foundation is a place to go. So
if you want to open a giving fund here in December,
just head to faith. Com. All right. We're going to
take a break. I know I had a lot for
you in that segment. So we'll dive into your questions
after this. 800 525 7000. We'll be right back. Great
(14:32):
to have you with us today on faith and finance. Live. Well.
The calls are coming in. We've got three lines open
800 525 7000. Let's go to Florida. Peter. Go ahead.
S4 (14:42):
Steve. Good afternoon. Rob. Thanks for taking my call.
S1 (14:46):
Of course sir.
S4 (14:47):
Just want to let you know that you and your team,
it's a great thing you do. I've listened to you
a few times on the road, and, um, the people
that you help out and, uh, it's just, uh, it's
definitely a good ministry. So thank you for that, man.
S1 (15:05):
Well, thank you for saying that, Peter. I appreciate that
a lot. And I would second the idea that my
team is what makes all this happen. They are amazing.
But how can I help you today?
S4 (15:14):
Well, I've been super blessed. And, uh, my wife and I, and, uh,
you know, God, God is. He can do things in
a few years that some people work a lot of
years to do. Um, but anyway, I got a business partner,
and we started a company ten years ago, and and, uh,
about five years into it, we started doing really good
(15:36):
and it's construction and, um, you know, we've been able
to build the church in Haiti and multiple construction projects and, uh,
Honduras and El Salvador. And so it's been it's been
an incredible ride. And, and we've saved a lot of money.
My wife and I are pretty, we're super frugal and
(15:59):
we don't do extravagant things. And, uh, so we didn't
really have a retirement. We've been saving up these dividend checks, and, well,
we put we put some in an account, uh, like 250,000,
in an account with a LPL financial. And I'm not
sure if Kyle's a certified Kingdom advisor. I'm going to
find out.
S1 (16:20):
Okay.
S4 (16:20):
He does love Jesus, and he does care about helping
us to do well with some retirement.
S1 (16:26):
But yeah, well, let me just say, when you do
have that conversation, tell him that if he's not, he
can become one. And there's a huge and growing community
of CCAs inside LPL right now, and they have a
community where they meet monthly on, you know, on electronically
with a national conference call, and they get together at
(16:47):
our conference every year. So not only can he get
the designation, but he can plug into a community of
other believing advisors within LPL, which is really cool.
S4 (16:56):
All right. I will definitely mention that to him and
find out. So anyway, we put some money in an
account and we talked about a retirement plan and, uh,
you know, hey, this is what we'd like to do.
And so. Okay, we'll see how we can get you there. Well,
then I, uh, I got this letter from Oxford Communique, and, and, uh,
(17:20):
I signed up and got some stock tips, and a
friend of mine's wife works at, uh, Edward Jones. So
I said, hey, will you purchase these stocks? I think
they're going to do good. One of them was Berkshire
Hathaway about five years, six years ago. Man, it's done. Amazing.
And a couple other ones have done good. And and
so I've got this account with like 250 grand in it.
(17:41):
And I've got, uh, with the stocks and then I've
got this one with, uh, LPL that's like 400 now.
And I just wonder if it would be smarter to
combine those. Take the stock money and put it in
the LPL so it would grow quicker and maybe consolidate it. And,
and I just was hoping you would give me some
(18:03):
good advice on that because you have some wisdom.
S1 (18:05):
Well, I appreciate that and I will certainly try. You know,
I like that a lot. I mean, obviously you pick
the stock and you picked a good one. I love
Berkshire Hathaway and, uh, you know, it has obviously done very,
very well. But I think one of the benefits of
you moving that over to your LPL account is not
only having everything in one under one roof can often
(18:27):
reduce fees, because usually there's price breaks when you get
over a certain amount, maybe at 250. And then if
you get over 500,000, maybe you get a price break there.
It simplifies the paperwork because now you're just getting tax
documents from one, you know, custodian instead of two. You're
not getting monthly statements from both, but it allows you
(18:48):
to make the investment strategy more consistent and have one person,
ideally a fiduciary, which is probably what your LPL advisor is,
where he or she is legally bound to put your
interests above their own, and you can avoid duplication or
conflicting strategies with the various investments in the accounts. And so,
(19:10):
you know, you've had a stock that's been a big winner,
but you're probably more highly concentrated in that one investment.
When you look at how much you have in that
one investment versus your total investable assets of about 650,000
such that, you know, it would be good, I think,
even though it may continue to do well. And maybe
(19:31):
you keep it. You know, I would say in one
particular investment like that, I wouldn't want more than 10%.
So that'd be 65,000 of your 650. Um, but it
would allow you to take a good bit of that,
including all the profits that you've got, uh, because it
was a winner, and move it into a more diversified
(19:52):
position so that you're just not unnecessarily concentrated, you know,
beyond what I would say would be, you know, a
max of 10%. Does that make sense?
S4 (20:02):
Yes it does. Okay. Yeah. So. Well there is that's
just one stock that I did. It was good. Some
of them didn't do so good. I probably have about
25 in the in the portfolio thing. You know I'm
not super educated. But like I said man, God's been
super good to us. And and you know as well
as I do you cannot give them.
S1 (20:23):
That's exactly right. Well a couple of thoughts there. Number
one is, I mean, you know, the bottom line is
you having this money, which is a significant sum of
money that the Lord has entrusted to you with an advisor,
regardless of whether you know you're good or you know
or not at picking investments, having somebody who can take
a rules based approach where it's, you know, their responsibility
(20:46):
can make sure you're properly diversified, not make emotional buy
and sell decisions when something goes up or goes down.
I think it's just always the better approach. So when
we're talking about a a sum of that amount, I
much prefer you having that with an advisor, unless you
just have a unique skill set and the time, you know,
to manage it yourself, and you can do it in
a way that doesn't, uh, you know, cause you to
(21:09):
react emotionally. But let me also just affirm what you
said there, because I love what you're doing. God has
obviously blessed your business. I love what you're doing with
these churches around the world. You know, money is meant
for kingdom impact. I mean, everything you've earned, saved, built
or invested Did flows from God and is intended to
serve people and glorify him. He's the giver. Money is
(21:31):
a tool, and as we like to say, you can't
serve God and money, but you can serve God with money.
And you're doing that, my friend. And your testimony today,
I'm confident, has been an encouragement to many of our listeners.
So thanks for calling. God bless you, my friend. Take care.
We'll be right back on faith and finance live. So
(22:01):
glad you're with us today on Faith and finance live.
I'm Rob West. We're taking your calls and questions. We
do have a few lines open, so if you have
a financial question. We've got half the program remaining and
a few lines ready for you. 800 525 7000. Let's
head out to Idaho. Cara. Go ahead.
S5 (22:18):
Yes. Hi. Thanks for taking my call. First time. Of course.
Doing this. Um. Oh. That's great. I do try to
listen to your show regularly. So I really appreciate all
your great advice and.
S1 (22:28):
Well, thank.
S5 (22:28):
You. Just your biblical perspective here. So, um, question, um,
when using a loan and and we did get a HELOC, um,
at roughly, you know, 7% and we do have some
credit cards, um, that are, that we need to take
(22:49):
care of. So it's roughly about 80 K. And so
I guess I'm wondering, does it make sense to switch
to the lower rate and use the loan? We do
have some house projects as well. Um, okay. So I'm
just wondering what makes sense here.
S1 (23:09):
Yeah, it's a good question. And I can see how
it might look attractive because at face value we say, well,
wait a minute, why would I, you know, not swap 24%
or whatever that credit card interest rate is for seven
and maybe it's falling because as rates come down, that
HELOC probably has a variable rate. The problem is really twofold.
(23:30):
Number one, you're making unsecured debt secured. And so now
your home is on the line. So I realized we
might say well I don't plan on defaulting. I mean
I'm going to keep this thing current. And and I
would say, well, that's great. But what if the unknown,
the unexpected comes. There's a disruption in income, a loss
of a job. Now all of a sudden, instead of
(23:52):
risking a judgment against you for an unsecured debt, you're
putting your home at risk. So that's the first issue.
The second issue is, you know, often when we come
in and wipe out the credit card debt, and I
don't know what led to the debt in your situation,
maybe it was a single event or a medical issue,
but if it was like most people and it was
just lifestyle spending beyond your means, and I'm not pointing fingers,
(24:15):
it's easy to do. We've all been there, um, often
when we come in and wipe it out and we
take that pressure off and we take the deep breath.
And you know, we know we got that interest rate down.
We just kind of take our foot off the gas
a little bit in terms of our, you know, being
diligent around dialing back spending, living within our means, being
(24:36):
content with what you know, we have in terms of
income and trying to make the hard choices to balance
the budget so that you, you know, not only can
get through the month, but also have something a little
surplus left at the end of the month. And so
my preferred approach, rather than a HELOC for credit card debt,
is to leave it right where it is and slide
(24:58):
it into a credit counseling program with our friends at
Christian Credit Counselors. When you do that, the interest rates
will drop. It depends on the creditor, but usually somewhere
between 0 and 10%. And you'll have a level monthly payment,
let's say 3% of the balance, except as the balance
is coming down, especially with that lower interest rate, That
(25:20):
level payment means you're sending a higher and higher percentage
of the balance every month. The combination of those two
things will help you pay it off 80% faster. And
then the goal is to, you know, continue to do
the hard work to dial back spending so that once
the debt is paid off, we don't ever go back
there again. So that would be my preferred approach. And
(25:41):
then use the help only for those things that are
truly going to add value to the home. Uh, you know,
which is, I think, a proper use for a home
equity line of credit. But give me your thoughts on that.
S5 (25:53):
Mhm. Yeah. No I, I agree with all of that
for sure. Um I do kind of have um, a
second part that's a little bit unrelated to the first question,
but I definitely agree that, um, just swapping the loans,
you know, just for the interest rate is definitely risky,
(26:14):
but it it is attractive because obviously with the rate
being so much lower. Um, so, um, like I said,
a little bit unrelated, but, um, for our retirement, we,
we basically we have a couple rentals. One of them
is not making any, um, you know, any gains for us.
(26:36):
We're just kind of just it's just a wash. Um,
and so I'm wondering, um, and we each, my husband
and I, we each have, um, you know, a little,
a small, little, um, nest egg in an IRA, you know, 100, um,
K and then a 200 K. Um, but and but
(26:57):
I've always kind of thought, well, our rentals will be
kind of really for our retirement, but we don't have
an emergency fund. So I guess I'm wondering, um, is
the best thing to do would be to, like, say,
sell it this spring, sell the one that's not making
us any money, and then invest that money in, say
like mutual funds or what would be the best approach
(27:19):
to get us set up a little better, um, for retirement?
S1 (27:24):
Yeah, it's a good question. And, you know, the emergency
fund is really something that we wouldn't invest. I mean,
that's for the unexpected. So that would be liquid savings
personally of 3 to 6 months expenses. And then I
would say, if you're going to be a landlord and
you already are, you would want 3 to 6 months
of rental expenses in addition to that. And so I
(27:48):
would say, you know, that would be your primary goal.
So if you did end up selling one and even
though it's not generating any income right now, I mean,
if at the very least it's covering all the expenses,
the debt service, the, you know, the insurance, the taxes,
the the maintenance, the marketing, you know, improvements. I mean,
at least you're, you know, you're building wealth by way of,
(28:11):
you know, they're helping you pay the mortgage and it's
hopefully appreciating such that you're going to have an asset
either to liquidate and invest in retirement to generate income,
or just to hold and throw off cash flow that
could supplement Social Security and investments. So I like that.
And obviously there's expenses involved in selling it. But I
(28:32):
think the key is to your point, if you don't
have an emergency fund, starting with that personal emergency fund,
we are in a bit of a risky situation where,
especially with the existing credit card debt, if something comes
out of left field, you know you don't have the
ability to handle it apart from adding to the credit
card debt. So in that case, it may make sense
(28:52):
to go ahead and sell the one that's not throwing
off any income. But if you did that, I would
shore up the 3 to 6 months of emergency expenses
not in the market, but in a high yield savings account.
And then, you know, maybe fully fund your your rental
emergency fund. And then at that point we're looking at, okay,
(29:13):
do we start saving for the purchase of another property,
or do we just start piling any surplus, especially once
the credit card debts gone into further investable assets in
like a stock and bond retirement account? Does that make sense?
S5 (29:29):
Yeah. Do you think it's pressing to kind of get
on this like, you know, in the next whatever six
months to, to actually because in my mind I'm thinking, yeah,
you're correct. It doesn't feel like we're in a very, um,
good situation. If anything were to happen either to our
renters or whatnot. Um, it's going to. Yeah. Be we're
(29:52):
going to get hit really hard. So if we sell it,
you know, um, we have approximately 200 K equity in there.
So we could use that to pay off debt and, um, yeah.
And do an emergency fund and I guess, Um, yeah,
(30:13):
I guess we're just trying to figure.
S1 (30:15):
Well, I think that would be good, because you could
pay off the debt again as long as you're committed to,
you know, getting that budget in place and not taking
any more debt on because I wouldn't want you to
pay it off. You take a deep breath and you
call me six months later and say, guess what, Rob?
The debt's back. I'd want you to really have a
plan that gives you confidence you're not going to go
back there. You could shore up the emergency fund, but
(30:36):
you'd obviously have some left over quite a bit. So
then at that point, we'd want to evaluate, okay, do
we have retirement plans we could put that into or
do we want to put it right back into a
future real estate fund? Let's talk about that after the break.
Stay right there, Kara. We'll be right back. Great to
(30:59):
have you with us today on Faith and finance live
in our final segment today. We'll get to as many
calls as we can. Before the break, we were talking
to Kara in Ohio. That was a combination of Idaho
and Ohio. Cara in Idaho, and she has several rentals. Uh,
they don't have an emergency fund. One of the rentals, uh,
they are not really generating any income on. It's basically
(31:21):
just breaking even. And she's wondering, with some credit card
debt and the fact that they don't have an emergency fund,
should they, uh, sell that particular property among their various
rentals and shore up the emergency fund, pay off the debt? Uh,
and then perhaps what is the best thing to do
with what remains? So, Cara, just go back over the
(31:43):
access to retirement accounts that you have. What what retirement
vehicles do you have already in place?
S5 (31:49):
Uh, we each have an IRA Roth.
S1 (31:53):
Okay. And what is your age?
S5 (31:56):
Uh, we're both in our 50s.
S1 (31:58):
Okay, so you could each put $8,000 into the Roth
this year. Are you on track to fully fund that currently?
S5 (32:06):
No. Okay. No, no.
S1 (32:08):
You You. You have. Until you file your 2025 return
to contribute for 2025. So you could go all the
way to April of 26 and still be contributing to 2025.
Let's say you were to sell the you know, the
that home. And I'm not saying you necessarily should. I'm
just saying if you did you'd have the ability to
(32:28):
do that. Do you have access to any other retirement accounts.
Do you or your husband have one at work or
anything like that?
S5 (32:35):
No, no we don't we just we we pretty much
depleted the savings and bought bought the rentals.
S1 (32:43):
Got it. And are you all W-2 employees or either
of you or are you self-employed?
S5 (32:49):
Um, my husband is self-employed. I work just a little bit.
Part time W-2.
S1 (32:54):
Okay. Yeah, but you don't have access to a 401 K?
S5 (32:58):
No.
S1 (32:59):
Okay. Well, with him being self-employed and with you all
being landlords and being the rental business, you could open
what's called a Sep IRA that would allow you to
put away up to 25% of compensation, so you could
put away quite a bit more if you wanted to
start investing. You know, you've already got the real estate,
and let's say you were to sell one, pay off
the debt, shore up the emergency fund and say to
(33:21):
diversify ourselves, we're going to fully fund the two Roths,
and then we're going to start contributing, you know, to
a Sep IRA. So that way we've got the stock
and bond portfolios, the three accounts growing. And then we
have the real estate growing. And the combination of all
of it, you know, is what's ultimately going to be
available for retirement. The other option is we pay, we
(33:43):
sell the home, we shore up the emergency fund, we
pay off the debt, we take whatever's left, put it
in a high yield savings account, and then keep adding
to it, and then look to buy another rental property.
But now we're in a much stronger position in terms
of your financial foundation. Does that make sense?
S5 (34:01):
Yeah. Yeah. I'm not familiar with the Sep. Is that
something that, um. What does that stand for?
S6 (34:08):
Yeah, it's self-employed pension.
S1 (34:11):
Um, and so it's basically for people like you who
don't have access to a 401 K. And so rather
than just being limited to the 8000 a year or 7000,
if you're not 50 in the IRA, it allows you
to put away quite a bit more. The contribution limits,
for instance, for this year are 25% of your compensation
(34:34):
or $69,000, whatever is, you know, the lesser of the two. Um,
and so it allows you to put away, you know,
quite a bit more because you don't have access to
another type of plan.
S5 (34:47):
Oh, okay. Okay.
S6 (34:49):
All right. And is.
S5 (34:51):
Okay. Is that something that you have to do with
an advisor or just. We can just do it on
our own.
S1 (34:56):
You can do it on your own. The only downside
to that is then you're also on your own going
to have to pick the investments. So where the advisor
comes in is not necessarily because it's overly complex to
set up a Sep. That's very simple. It's just that
at the end of the day, if all of a
sudden you have, you know, 50, 75,000 in there and growing,
you know, you're going to have to make the buy
(35:17):
and sell decisions yourself. And an advisor could help choose
those for you.
S6 (35:22):
Okay, okay. All right. Thanks for your call, Cara.
S1 (35:25):
We covered a lot of ground today. Uh, glad you called, though.
Call anytime. Let's go out to Oklahoma. Stan. Go ahead.
S7 (35:33):
Yes. I was just wondering. I've got my 401 K. Um,
I put 10% pre-tax, 5% post-tax. The 5% is maxed out.
But I was wondering, with the way that they've changed
the laws for the overtime, you know, it being tax free,
(35:54):
up to 25,000. I was just wondering, is it actually
benefit me one way or the other, you know, to
like keep it 5% or should I take in? Just
roll it over and put instead of 10% 15%?
S1 (36:12):
Yeah. Okay. So is this a 401 K that you're
putting the money into?
S7 (36:17):
Yes.
S1 (36:18):
Okay. Um, yeah. I mean, there was a study done
on this, um, where they looked at literally thousands of
accounts and basically tried to determine what is the optimal strategy,
because keep in mind we've got some unknowns here. And
in particular, the main unknown is what is what are
the tax laws going to look like, the various tax
(36:40):
brackets during retirement in the future for you. And we
just that's that's an unknown. And so we have to
balance the benefit of the, the pre-tax contribution today where
you get the deduction with the after tax contribution where
you don't get the deduction today and potentially during your
peak earning years, but you get tax free withdrawals later,
(37:05):
and perhaps at a higher tax bracket just because, not
necessarily your earning a lot because you'd be in retirement
at that point, but because, you know, there's a new
administration and a new Congress and they're raising rates on taxes.
And that is a likely outcome in the future. So
they studied thousands of of retirement accounts and basically determined that,
(37:30):
at least based on the ones they evaluated, the optimal
formula was you take your age, you add 20 to it,
and that's how much you put in pre-tax. And then
you put the balance in the after tax. So if
you're 50, you'd put 70% in the pre-tax and you'd
put 30% in in the after tax. Doesn't mean that's foolproof,
(37:52):
but at least based on their studies, that was what produced,
you know, the most optimal outcomes. Does that make sense?
S7 (38:01):
Yes.
S1 (38:02):
Okay. So, you know, you may want to look at
your percentages and just see based on the total dollars
going in, how much is of that is going into
a pre-tax environment. How much is going to an after
tax environment. And if you wanted to apply this age
plus 20 into pre-tax, then you could evaluate whether you
(38:24):
need to bump that up or down accordingly.
S7 (38:28):
Okay.
S1 (38:29):
Okay.
S7 (38:30):
I appreciate it. I was just wondering, I wasn't sure
if necessarily with them changing the laws for the overtime,
if that would actually really affect anything. Um, because I
do cover the 25,000 with the overtime and I, I
(38:53):
haven't actually maxed out my 401 K per year, But
I'm right there at the cusp of maxing it out.
S1 (39:04):
Yeah, yeah. I mean, the overtime law changes really don't
affect whether you would use Pretax or Roth. Um, I mean,
that really is dependent upon taxes and whether you get
more benefit now from the deduction at a higher earning,
you know, period, versus, you know, getting the tax free
(39:24):
growth later and paying the taxes now. Um, you know,
I don't really see any necessarily any connection to the
overtime changes that would affect that one way or the other.
It's really just, you know, given the unknowns and given
where you're at in terms of what you're earning right now,
just trying to find that optimal mix between the pre-tax
(39:46):
and Roth, I like you having both buckets growing for
the future, because then you could choose down the road
when you're ready to start taking withdrawals to supplement your income.
Which bucket is more effective given the environment that we're
in at that point, which we don't know today. Um,
so I think going back to that percentage, or at
least that formula of your age plus 20 into pre-tax
(40:08):
is about as good as you're going to find in
terms of where you go from here. So hopefully that helps.
We appreciate your call today. Lord bless you. Quickly to Florida. Hamilton,
how can I help?
S8 (40:18):
Yes, I have a relative who have siblings. They inherited
property and they're getting calls from people from out of
town wanting to help them sell the property. And I
was curious, would there be a good CTA that could
be helping them?
S1 (40:37):
Yeah. Um, in terms of a real estate professional or
an attorney, what do you thinking?
S8 (40:45):
Um, since it's real estate, I would think. Real estate attorney.
S1 (40:50):
Yeah, yeah. Um, yeah. I mean, I think having somebody
who can walk alongside them just to make sure. What
is the title, how is it structured, who you know,
what is the ownership structure? And making sure that, uh,
you know, ultimately that's handled properly? Uh, just given that
it's an inheritance and there's several properties, uh, and you're
(41:10):
going to want to make sure everything's free and clear,
and then you're going to want, you know, the executor
should be able to help you understand, you know, if
it was left, if any of the properties were left
to multiple errors, kind of what is that ownership structure
now and what portion belongs to each person? You got
to sort all that out. And then ultimately you're going
to need a real estate professional that's, you know, really
(41:33):
skilled in not only real estate, uh, transactions, but also
has some expertise in the particular locale of where these
properties are. That's where you're going to be able to
maximize the value. I think all of that could be
a referral from a certified Kingdom advisor there in Florida,
because any C.K. would have not only an estate planning
(41:54):
attorney that they would work with regularly, or a couple
of them, but probably have a real estate professional that
they could refer you to. So I would head to
find a. Com and then reach out to those individuals,
let them know you listen to this program and just
ask for a referral, and they should be able to
help you. Okay.
S9 (42:13):
Thank you for taking my call.
S1 (42:14):
Absolutely. Hamilton. Lord bless you, sir. Well, as we wrap
up here today, just a quick reminder. If you are
a client of a certified Kingdom advisor, I need your
help to take a survey that's going to be a
part of a national research project we're doing, if you'll
go to. That would be a big help. If you
want to support our work between now and the end
of the year, every gift doubled. At least give big
(42:38):
thanks to Tahira, Taylor, Omar and Josh. Faith and Finance
Lives a partnership between Moody Radio and Faith fi. Come
back and join us tomorrow. We'll see you then. Bye bye.
A new name often marks a new season. And that's
exactly what's happening at Adelphi Christian Banking. Hi, I'm Rob West.
When two faith based credit unions come together, the goal
isn't just greater size, it's greater kingdom impact. That's the
story behind the newly rebranded Adelphi Christian Banking. Erin Kaye
joins us to share how this merger came together, what
(00:31):
the new brand represents and how it will strengthen Christian
banking for years to come. Then it's on to your
calls at 800 525 7000. This is faith and finance. Live.
Biblical wisdom for your financial decisions. Well, it's always a
conversation about faith as much as finance. When Aaron Kaye
(00:51):
joins us, he's the chief marketing officer at Adelphi Christian Banking,
still a not for profit financial institution and a proud
underwriter of this program. Aaron, great to have you back.
S2 (01:02):
It's great to be back. Rob.
S1 (01:04):
Aaron, this is a significant moment for both organizations with
the rollout of a new name and brand. So introduce
us to Adelphi Christian Banking. How did this new identity
come together and what does it represent?
S2 (01:18):
Well, our new name and identity are a visual representation
of what we desire to accomplish with the merger of
Adelphi and Christian Community Credit Union. It represents a union
of the best of both credit unions and honors the
legacy and members of both. The root of our name
is Adelphos, which is used over 300 times in the
New Testament to refer to brothers and sisters in Christ.
(01:39):
And the staff of both credit unions, truly and our members,
our brothers and sisters in Christ, coming together to build
a financial institution that is centered on Christ and dedicated
to advancing God's kingdom. And the moniker Christian banking is
a bold declaration of who we serve. As for timing,
we completed the merger on December 1st. For the next
(01:59):
few months, you'll see both brands in the marketplace. The
rollout of Adelphi Christian Banking will take place over the
course of 2026, with notable milestones including the launch of
a new website in Q2 and an enhanced digital banking
experience in Q3.
S1 (02:14):
Wow, this is really exciting. So, Adelphi and Christian Community
Credit Union coming together as Adelphi Christian Banking now, Aaron.
Every merger, of course, brings unique strengths to the table.
What stands out to you about each organization and how
will bringing them together create something really special and even stronger?
S2 (02:34):
Well, both Christian Community Credit Union and Adelphi are Christ
centered financial institutions with shared values, complementary strengths, and together
we bring over 125 years of ministry focused experience. Wow.
Adelphi tithes 10% of its earnings to Christian charities and
mission sending agencies, for its part, gives a portion of
(02:57):
every swipe on its credit and debit cards to Christian
ministries over $6.5 million to date. Together, we will amplify
our giving increasing kingdom impact. Yeah. And with our union,
we will form the nation's largest Christian credit union, creating
a digital forward Christian banking experience that honors God and
meets members wherever they are in their financial journey. And
(03:18):
this merger also expands our lending capacity for churches, ministries
and Christian businesses and opens new opportunities to support gospel
centered causes and fuel Kingdom growth.
S1 (03:28):
Wow. Yeah, it just seems like putting these two organizations
together means so much for not only the kingdom, but
also for those that will be using this as a
banking institution. Now, you've said this moment is significant for
the broader Christian banking community. So how do you see
this merger strengthening the industry and its influence in the
(03:50):
years ahead?
S2 (03:51):
Well, Christian banking is a fairly small industry, And to
be frank, most Americans don't even know that a Christian
banking solution exists. Yeah. Thus, by merging, we're aligning our
resources to create more opportunity for awareness, growth, and kingdom impact.
Adelphi Christian Banking is now the clear leader in this space,
and we're just getting started. So we desire to be
(04:13):
the go to financial solution for Christ followers who seek
to align their finances with their faith and steward God's
resources to his glory.
S1 (04:21):
That's really helpful. Aaron Christian banking isn't something you come
across every day. Would you say it's a bit countercultural?
S2 (04:29):
Well, yeah. We've seen a major market shift among Christians
who are just plain fed up with how their secular
banks use their funds and the causes they support. They
instead want the resources God has entrusted with them to
be stewarded well and to honor him. So we're boldly
stating that there's a quality option to unite your Christian
faith with your finances, a place where your funds are
(04:49):
stewarded for kingdom impact and gospel expansion. These principles contrast
greatly with the worldly priorities of our culture. So therefore,
banking with your Christian values could be considered countercultural.
S1 (04:59):
Yeah, that's well said. Aaron, really excited about this merger.
Thanks for sharing the big news.
S2 (05:04):
Thank you. Thanks for having me, Rob.
S1 (05:06):
Our guest has been Aaron Cade with Adelphi Christian Banking.
It's clear this new identity reflects a unified vision. And
what an opportunity for you. To learn more, go to
faith banking. That's faith. We'll be right back.
S3 (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 situation.
S1 (05:58):
Great to have you with us today on Faith and
Finance Live. Again, that website is faith.com/banking. If you want
to learn more about the combination of Christian Community Credit
Union and Adelphi as the new significantly by a lot largest, uh,
Christian banking solution in the country. Adelphi Christian banking. All right.
(06:21):
I've got a favor to ask before we dive into
the questions today. And by the way, uh, now's a
good time to call. So if you do have a question,
call 800 525 7000. That's 800 525 7000. All right.
To that favor. If you, uh, are a client of
a certified Kingdom advisor. So I know a lot of
you listen to this program, uh, over the years have said, yeah,
(06:44):
I want an advisor who shares my values and has
been trained to bring advice rooted in a biblical worldview
that is professional and competent, but aligns with the heart
of God in Scripture. Uh, you've reached out to and
connected with a certified Kingdom advisor. We hear from you
all the time. You say, I'm so thankful that I
found a CX in my area. Well, we are doing
(07:06):
a national research project, and we're studying the impact of
advice from a traditional advisor versus advice given by a
certified Kingdom advisor. And we're doing that both with advisors.
So we're surveying through this national research project. We're surveying
(07:26):
advisors who are not sikayet. And then we're doing the
same survey with the Kas. And we're going to compare
and contrast the outcomes and the fulfillment and really just
how it's impacting their work and their life and their
planning outcomes and the topics they deal with and the
intergenerational communication, all those issues. But we're also conducting a
(07:47):
survey directly with clients. And so we're surveying those who
are currently with a certified Kingdom advisor and those who
are not. Now for the non the clients of of
an advisor who is not a CX, we have reached
all that we need for that, but we are still
looking for some folks, a couple of hundred, uh, over
(08:10):
the next month, uh, to complete the survey, if you
are a client of a certified Kingdom advisor. So if
that's you, you're like, yeah, I've got one of those,
and you'd be willing to give us ten minutes of
your time for this anonymous survey that will not be
shared with us individually, and it will not be shared
with your advisor individually. It's all anonymous. Then I've got
a link for you. I need you to go to faith.
(08:35):
That's faith. Again, it'll take you 10 to 12 minutes.
And if you are an active client of a certified
Kingdom advisor and you'd be willing to complete it. I'm
so excited about what we're going to uncover just as
we further study. I mean, we know anecdotally the impact
of you being with a certified Kingdom advisor, but we
(08:56):
want to look at that in the aggregate and really
have some, uh, some data that we can trust that, uh,
you know, with a research project, uh, you know, that
that really meets all the standards, uh, for a really thoughtful, uh, project.
So that's what we're doing, the website again, faithfully. And
if you would, uh, join that, we would be very,
(09:18):
very grateful. All right. We're going to begin taking your
calls here in just a moment. That number 800 525
7000 again. That's 800 525 7000. We'd love to hear
from you today. Uh, in the news today, uh, there's
a lot being talked about related to the Trump accounts.
You might say. Wait a minute. What is that? Well,
(09:39):
I'll get to that. But first, what's, uh, what's making
news this week? Is that tech CEO Michael Dell and
his wife, Susan. So think Dell computer. Yeah, that Michael Dell,
he just pledged $6.25 billion with a B on giving
Tuesday to help jump start these new children's savings account.
(10:01):
Now their gift could enable about 25 million kids here
in the United States, ages ten and under, that were
born before January 1st, 2025, and living in moderate income
ZIP codes to receive a $250 deposit to begin saving
for the future. Now, these Trump accounts function like long
(10:24):
term investment IRAs for kids starting July 4th, 2026. You
know what that date is? Families can contribute up to
$5,000 a year, and newborns from 2025 to 2028 will
automatically get a $1,000 government deposit. Now the money grows
(10:45):
tax deferred and can later be used for education. But
it goes beyond that job training, a first home, even
starting a business. So the Trump accounts. And by the way,
if you want to learn more you can go to
Trump accounts. Gov to read up on this. What is
already in place is the children that are born between
January 1st, 2025 through the year 2028. They're going to
(11:09):
get that government funded Trump account with a one time
$1,000 deposit. And then beginning July 4th, 2026, that's where
families can begin adding to that $5,000 a year, what
Michael Dell has enabled and you'll see it Trump accounts.gov.
They're actually asking for other business owners like Dell. Those
(11:30):
who are very well off. Mr. Dell would be in
that category uh to pledge like he has to actually
expand this beyond newborns to those ten and younger. Uh, that, uh,
that were born prior to January 1st, 2025. Now they're
not going to get a thousand like those born after
(11:51):
January 1st, 2025, but they are going to get 250,
but it's going to create the account and then allow
mom and dad and grandparents to come in and continue
to fund it. So a lot we're learning about this.
This is just remarkable. I mean, can you imagine a
$6 billion gift to be able to fund these accounts
for these children, go to Trump accounts.gov. We're also hearing
(12:14):
one other thing. And this is just phenomenal, is that
donor advised funds are going to be permitted to contribute
to these accounts. And this is just unheard of. Uh,
you know, donor advised funds. We talk about those often.
It's one of my favorite giving tools where you put
money or assets in, you get the immediate deduction and
then you can recommend grants out of it. Well, normally
(12:36):
that can only go to a 501 C3, including your
church or another ministry. But what we're hearing is that
the legislation is going to allow contributions out of a
donor advised fund, and one of those approved entities beyond
a 501, C three is a Trump account. And so
they'll be able to be funded up to 5000 a
year through 2028 out of a donor advised fund. Incredible. Um,
(13:01):
there'll be a lot more on this in the days ahead.
We'll be covering it between now and July 4th, 2026.
But just something to have on your radar, because undoubtedly
it's going to affect a lot of our listeners and
you're going to want to know about it again, that
website Trump accounts.org. Uh, let me just wrap this up.
And by the way, after the break, we will be
(13:21):
taking your calls and questions. So if you have one
800 525 7000. If you want to open a donor
advised fund, the place to do it in my view,
is the National Christian Foundation. And here's why. The money
gets granted out by you to the the 501 C3
at your direction. The IRS says as long as their
(13:44):
501 C3 they qualify, but the donor advised fund sponsor
could shut it down if for some reason they had
a list of ministries that they didn't agree with. Doesn't
happen often. Could it happen? Absolutely. So that's why I
think being aligned with the donor advised fund sponsor who
understands your Christian values is really important. And that's why
(14:05):
the National Christian Foundation is a place to go. So
if you want to open a giving fund here in December,
just head to faith. Com. All right. We're going to
take a break. I know I had a lot for
you in that segment. So we'll dive into your questions
after this. 800 525 7000. We'll be right back. Great
(14:32):
to have you with us today on faith and finance. Live. Well.
The calls are coming in. We've got three lines open
800 525 7000. Let's go to Florida. Peter. Go ahead.
S4 (14:42):
Steve. Good afternoon. Rob. Thanks for taking my call.
S1 (14:46):
Of course sir.
S4 (14:47):
Just want to let you know that you and your team,
it's a great thing you do. I've listened to you
a few times on the road, and, um, the people
that you help out and, uh, it's just, uh, it's
definitely a good ministry. So thank you for that, man.
S1 (15:05):
Well, thank you for saying that, Peter. I appreciate that
a lot. And I would second the idea that my
team is what makes all this happen. They are amazing.
But how can I help you today?
S4 (15:14):
Well, I've been super blessed. And, uh, my wife and I, and, uh,
you know, God, God is. He can do things in
a few years that some people work a lot of
years to do. Um, but anyway, I got a business partner,
and we started a company ten years ago, and and, uh,
about five years into it, we started doing really good
(15:36):
and it's construction and, um, you know, we've been able
to build the church in Haiti and multiple construction projects and, uh,
Honduras and El Salvador. And so it's been it's been
an incredible ride. And, and we've saved a lot of money.
My wife and I are pretty, we're super frugal and
(15:59):
we don't do extravagant things. And, uh, so we didn't
really have a retirement. We've been saving up these dividend checks, and, well,
we put we put some in an account, uh, like 250,000,
in an account with a LPL financial. And I'm not
sure if Kyle's a certified Kingdom advisor. I'm going to
find out.
S1 (16:20):
Okay.
S4 (16:20):
He does love Jesus, and he does care about helping
us to do well with some retirement.
S1 (16:26):
But yeah, well, let me just say, when you do
have that conversation, tell him that if he's not, he
can become one. And there's a huge and growing community
of CCAs inside LPL right now, and they have a
community where they meet monthly on, you know, on electronically
with a national conference call, and they get together at
(16:47):
our conference every year. So not only can he get
the designation, but he can plug into a community of
other believing advisors within LPL, which is really cool.
S4 (16:56):
All right. I will definitely mention that to him and
find out. So anyway, we put some money in an
account and we talked about a retirement plan and, uh,
you know, hey, this is what we'd like to do.
And so. Okay, we'll see how we can get you there. Well,
then I, uh, I got this letter from Oxford Communique, and, and, uh,
(17:20):
I signed up and got some stock tips, and a
friend of mine's wife works at, uh, Edward Jones. So
I said, hey, will you purchase these stocks? I think
they're going to do good. One of them was Berkshire
Hathaway about five years, six years ago. Man, it's done. Amazing.
And a couple other ones have done good. And and
so I've got this account with like 250 grand in it.
(17:41):
And I've got, uh, with the stocks and then I've
got this one with, uh, LPL that's like 400 now.
And I just wonder if it would be smarter to
combine those. Take the stock money and put it in
the LPL so it would grow quicker and maybe consolidate it. And,
and I just was hoping you would give me some
(18:03):
good advice on that because you have some wisdom.
S1 (18:05):
Well, I appreciate that and I will certainly try. You know,
I like that a lot. I mean, obviously you pick
the stock and you picked a good one. I love
Berkshire Hathaway and, uh, you know, it has obviously done very,
very well. But I think one of the benefits of
you moving that over to your LPL account is not
only having everything in one under one roof can often
(18:27):
reduce fees, because usually there's price breaks when you get
over a certain amount, maybe at 250. And then if
you get over 500,000, maybe you get a price break there.
It simplifies the paperwork because now you're just getting tax
documents from one, you know, custodian instead of two. You're
not getting monthly statements from both, but it allows you
(18:48):
to make the investment strategy more consistent and have one person,
ideally a fiduciary, which is probably what your LPL advisor is,
where he or she is legally bound to put your
interests above their own, and you can avoid duplication or
conflicting strategies with the various investments in the accounts. And so,
(19:10):
you know, you've had a stock that's been a big winner,
but you're probably more highly concentrated in that one investment.
When you look at how much you have in that
one investment versus your total investable assets of about 650,000
such that, you know, it would be good, I think,
even though it may continue to do well. And maybe
(19:31):
you keep it. You know, I would say in one
particular investment like that, I wouldn't want more than 10%.
So that'd be 65,000 of your 650. Um, but it
would allow you to take a good bit of that,
including all the profits that you've got, uh, because it
was a winner, and move it into a more diversified
(19:52):
position so that you're just not unnecessarily concentrated, you know,
beyond what I would say would be, you know, a
max of 10%. Does that make sense?
S4 (20:02):
Yes it does. Okay. Yeah. So. Well there is that's
just one stock that I did. It was good. Some
of them didn't do so good. I probably have about
25 in the in the portfolio thing. You know I'm
not super educated. But like I said man, God's been
super good to us. And and you know as well
as I do you cannot give them.
S1 (20:23):
That's exactly right. Well a couple of thoughts there. Number
one is, I mean, you know, the bottom line is
you having this money, which is a significant sum of
money that the Lord has entrusted to you with an advisor,
regardless of whether you know you're good or you know
or not at picking investments, having somebody who can take
a rules based approach where it's, you know, their responsibility
(20:46):
can make sure you're properly diversified, not make emotional buy
and sell decisions when something goes up or goes down.
I think it's just always the better approach. So when
we're talking about a a sum of that amount, I
much prefer you having that with an advisor, unless you
just have a unique skill set and the time, you know,
to manage it yourself, and you can do it in
a way that doesn't, uh, you know, cause you to
(21:09):
react emotionally. But let me also just affirm what you
said there, because I love what you're doing. God has
obviously blessed your business. I love what you're doing with
these churches around the world. You know, money is meant
for kingdom impact. I mean, everything you've earned, saved, built
or invested Did flows from God and is intended to
serve people and glorify him. He's the giver. Money is
(21:31):
a tool, and as we like to say, you can't
serve God and money, but you can serve God with money.
And you're doing that, my friend. And your testimony today,
I'm confident, has been an encouragement to many of our listeners.
So thanks for calling. God bless you, my friend. Take care.
We'll be right back on faith and finance live. So
(22:01):
glad you're with us today on Faith and finance live.
I'm Rob West. We're taking your calls and questions. We
do have a few lines open, so if you have
a financial question. We've got half the program remaining and
a few lines ready for you. 800 525 7000. Let's
head out to Idaho. Cara. Go ahead.
S5 (22:18):
Yes. Hi. Thanks for taking my call. First time. Of course.
Doing this. Um. Oh. That's great. I do try to
listen to your show regularly. So I really appreciate all
your great advice and.
S1 (22:28):
Well, thank.
S5 (22:28):
You. Just your biblical perspective here. So, um, question, um,
when using a loan and and we did get a HELOC, um,
at roughly, you know, 7% and we do have some
credit cards, um, that are, that we need to take
(22:49):
care of. So it's roughly about 80 K. And so
I guess I'm wondering, does it make sense to switch
to the lower rate and use the loan? We do
have some house projects as well. Um, okay. So I'm
just wondering what makes sense here.
S1 (23:09):
Yeah, it's a good question. And I can see how
it might look attractive because at face value we say, well,
wait a minute, why would I, you know, not swap 24%
or whatever that credit card interest rate is for seven
and maybe it's falling because as rates come down, that
HELOC probably has a variable rate. The problem is really twofold.
(23:30):
Number one, you're making unsecured debt secured. And so now
your home is on the line. So I realized we
might say well I don't plan on defaulting. I mean
I'm going to keep this thing current. And and I
would say, well, that's great. But what if the unknown,
the unexpected comes. There's a disruption in income, a loss
of a job. Now all of a sudden, instead of
(23:52):
risking a judgment against you for an unsecured debt, you're
putting your home at risk. So that's the first issue.
The second issue is, you know, often when we come
in and wipe out the credit card debt, and I
don't know what led to the debt in your situation,
maybe it was a single event or a medical issue,
but if it was like most people and it was
just lifestyle spending beyond your means, and I'm not pointing fingers,
(24:15):
it's easy to do. We've all been there, um, often
when we come in and wipe it out and we
take that pressure off and we take the deep breath.
And you know, we know we got that interest rate down.
We just kind of take our foot off the gas
a little bit in terms of our, you know, being
diligent around dialing back spending, living within our means, being
(24:36):
content with what you know, we have in terms of
income and trying to make the hard choices to balance
the budget so that you, you know, not only can
get through the month, but also have something a little
surplus left at the end of the month. And so
my preferred approach, rather than a HELOC for credit card debt,
is to leave it right where it is and slide
(24:58):
it into a credit counseling program with our friends at
Christian Credit Counselors. When you do that, the interest rates
will drop. It depends on the creditor, but usually somewhere
between 0 and 10%. And you'll have a level monthly payment,
let's say 3% of the balance, except as the balance
is coming down, especially with that lower interest rate, That
(25:20):
level payment means you're sending a higher and higher percentage
of the balance every month. The combination of those two
things will help you pay it off 80% faster. And
then the goal is to, you know, continue to do
the hard work to dial back spending so that once
the debt is paid off, we don't ever go back
there again. So that would be my preferred approach. And
(25:41):
then use the help only for those things that are
truly going to add value to the home. Uh, you know,
which is, I think, a proper use for a home
equity line of credit. But give me your thoughts on that.
S5 (25:53):
Mhm. Yeah. No I, I agree with all of that
for sure. Um I do kind of have um, a
second part that's a little bit unrelated to the first question,
but I definitely agree that, um, just swapping the loans,
you know, just for the interest rate is definitely risky,
(26:14):
but it it is attractive because obviously with the rate
being so much lower. Um, so, um, like I said,
a little bit unrelated, but, um, for our retirement, we,
we basically we have a couple rentals. One of them
is not making any, um, you know, any gains for us.
(26:36):
We're just kind of just it's just a wash. Um,
and so I'm wondering, um, and we each, my husband
and I, we each have, um, you know, a little,
a small, little, um, nest egg in an IRA, you know, 100, um,
K and then a 200 K. Um, but and but
(26:57):
I've always kind of thought, well, our rentals will be
kind of really for our retirement, but we don't have
an emergency fund. So I guess I'm wondering, um, is
the best thing to do would be to, like, say,
sell it this spring, sell the one that's not making
us any money, and then invest that money in, say
like mutual funds or what would be the best approach
(27:19):
to get us set up a little better, um, for retirement?
S1 (27:24):
Yeah, it's a good question. And, you know, the emergency
fund is really something that we wouldn't invest. I mean,
that's for the unexpected. So that would be liquid savings
personally of 3 to 6 months expenses. And then I
would say, if you're going to be a landlord and
you already are, you would want 3 to 6 months
of rental expenses in addition to that. And so I
(27:48):
would say, you know, that would be your primary goal.
So if you did end up selling one and even
though it's not generating any income right now, I mean,
if at the very least it's covering all the expenses,
the debt service, the, you know, the insurance, the taxes,
the the maintenance, the marketing, you know, improvements. I mean,
at least you're, you know, you're building wealth by way of,
(28:11):
you know, they're helping you pay the mortgage and it's
hopefully appreciating such that you're going to have an asset
either to liquidate and invest in retirement to generate income,
or just to hold and throw off cash flow that
could supplement Social Security and investments. So I like that.
And obviously there's expenses involved in selling it. But I
(28:32):
think the key is to your point, if you don't
have an emergency fund, starting with that personal emergency fund,
we are in a bit of a risky situation where,
especially with the existing credit card debt, if something comes
out of left field, you know you don't have the
ability to handle it apart from adding to the credit
card debt. So in that case, it may make sense
(28:52):
to go ahead and sell the one that's not throwing
off any income. But if you did that, I would
shore up the 3 to 6 months of emergency expenses
not in the market, but in a high yield savings account.
And then, you know, maybe fully fund your your rental
emergency fund. And then at that point we're looking at, okay,
(29:13):
do we start saving for the purchase of another property,
or do we just start piling any surplus, especially once
the credit card debts gone into further investable assets in
like a stock and bond retirement account? Does that make sense?
S5 (29:29):
Yeah. Do you think it's pressing to kind of get
on this like, you know, in the next whatever six
months to, to actually because in my mind I'm thinking, yeah,
you're correct. It doesn't feel like we're in a very, um,
good situation. If anything were to happen either to our
renters or whatnot. Um, it's going to. Yeah. Be we're
(29:52):
going to get hit really hard. So if we sell it,
you know, um, we have approximately 200 K equity in there.
So we could use that to pay off debt and, um, yeah.
And do an emergency fund and I guess, Um, yeah,
(30:13):
I guess we're just trying to figure.
S1 (30:15):
Well, I think that would be good, because you could
pay off the debt again as long as you're committed to,
you know, getting that budget in place and not taking
any more debt on because I wouldn't want you to
pay it off. You take a deep breath and you
call me six months later and say, guess what, Rob?
The debt's back. I'd want you to really have a
plan that gives you confidence you're not going to go
back there. You could shore up the emergency fund, but
(30:36):
you'd obviously have some left over quite a bit. So
then at that point, we'd want to evaluate, okay, do
we have retirement plans we could put that into or
do we want to put it right back into a
future real estate fund? Let's talk about that after the break.
Stay right there, Kara. We'll be right back. Great to
(30:59):
have you with us today on Faith and finance live
in our final segment today. We'll get to as many
calls as we can. Before the break, we were talking
to Kara in Ohio. That was a combination of Idaho
and Ohio. Cara in Idaho, and she has several rentals. Uh,
they don't have an emergency fund. One of the rentals, uh,
they are not really generating any income on. It's basically
(31:21):
just breaking even. And she's wondering, with some credit card
debt and the fact that they don't have an emergency fund,
should they, uh, sell that particular property among their various
rentals and shore up the emergency fund, pay off the debt? Uh,
and then perhaps what is the best thing to do
with what remains? So, Cara, just go back over the
(31:43):
access to retirement accounts that you have. What what retirement
vehicles do you have already in place?
S5 (31:49):
Uh, we each have an IRA Roth.
S1 (31:53):
Okay. And what is your age?
S5 (31:56):
Uh, we're both in our 50s.
S1 (31:58):
Okay, so you could each put $8,000 into the Roth
this year. Are you on track to fully fund that currently?
S5 (32:06):
No. Okay. No, no.
S1 (32:08):
You You. You have. Until you file your 2025 return
to contribute for 2025. So you could go all the
way to April of 26 and still be contributing to 2025.
Let's say you were to sell the you know, the
that home. And I'm not saying you necessarily should. I'm
just saying if you did you'd have the ability to
(32:28):
do that. Do you have access to any other retirement accounts.
Do you or your husband have one at work or
anything like that?
S5 (32:35):
No, no we don't we just we we pretty much
depleted the savings and bought bought the rentals.
S1 (32:43):
Got it. And are you all W-2 employees or either
of you or are you self-employed?
S5 (32:49):
Um, my husband is self-employed. I work just a little bit.
Part time W-2.
S1 (32:54):
Okay. Yeah, but you don't have access to a 401 K?
S5 (32:58):
No.
S1 (32:59):
Okay. Well, with him being self-employed and with you all
being landlords and being the rental business, you could open
what's called a Sep IRA that would allow you to
put away up to 25% of compensation, so you could
put away quite a bit more if you wanted to
start investing. You know, you've already got the real estate,
and let's say you were to sell one, pay off
the debt, shore up the emergency fund and say to
(33:21):
diversify ourselves, we're going to fully fund the two Roths,
and then we're going to start contributing, you know, to
a Sep IRA. So that way we've got the stock
and bond portfolios, the three accounts growing. And then we
have the real estate growing. And the combination of all
of it, you know, is what's ultimately going to be
available for retirement. The other option is we pay, we
(33:43):
sell the home, we shore up the emergency fund, we
pay off the debt, we take whatever's left, put it
in a high yield savings account, and then keep adding
to it, and then look to buy another rental property.
But now we're in a much stronger position in terms
of your financial foundation. Does that make sense?
S5 (34:01):
Yeah. Yeah. I'm not familiar with the Sep. Is that
something that, um. What does that stand for?
S6 (34:08):
Yeah, it's self-employed pension.
S1 (34:11):
Um, and so it's basically for people like you who
don't have access to a 401 K. And so rather
than just being limited to the 8000 a year or 7000,
if you're not 50 in the IRA, it allows you
to put away quite a bit more. The contribution limits,
for instance, for this year are 25% of your compensation
(34:34):
or $69,000, whatever is, you know, the lesser of the two. Um,
and so it allows you to put away, you know,
quite a bit more because you don't have access to
another type of plan.
S5 (34:47):
Oh, okay. Okay.
S6 (34:49):
All right. And is.
S5 (34:51):
Okay. Is that something that you have to do with
an advisor or just. We can just do it on
our own.
S1 (34:56):
You can do it on your own. The only downside
to that is then you're also on your own going
to have to pick the investments. So where the advisor
comes in is not necessarily because it's overly complex to
set up a Sep. That's very simple. It's just that
at the end of the day, if all of a
sudden you have, you know, 50, 75,000 in there and growing,
you know, you're going to have to make the buy
(35:17):
and sell decisions yourself. And an advisor could help choose
those for you.
S6 (35:22):
Okay, okay. All right. Thanks for your call, Cara.
S1 (35:25):
We covered a lot of ground today. Uh, glad you called, though.
Call anytime. Let's go out to Oklahoma. Stan. Go ahead.
S7 (35:33):
Yes. I was just wondering. I've got my 401 K. Um,
I put 10% pre-tax, 5% post-tax. The 5% is maxed out.
But I was wondering, with the way that they've changed
the laws for the overtime, you know, it being tax free,
(35:54):
up to 25,000. I was just wondering, is it actually
benefit me one way or the other, you know, to
like keep it 5% or should I take in? Just
roll it over and put instead of 10% 15%?
S1 (36:12):
Yeah. Okay. So is this a 401 K that you're
putting the money into?
S7 (36:17):
Yes.
S1 (36:18):
Okay. Um, yeah. I mean, there was a study done
on this, um, where they looked at literally thousands of
accounts and basically tried to determine what is the optimal strategy,
because keep in mind we've got some unknowns here. And
in particular, the main unknown is what is what are
the tax laws going to look like, the various tax
(36:40):
brackets during retirement in the future for you. And we
just that's that's an unknown. And so we have to
balance the benefit of the, the pre-tax contribution today where
you get the deduction with the after tax contribution where
you don't get the deduction today and potentially during your
peak earning years, but you get tax free withdrawals later,
(37:05):
and perhaps at a higher tax bracket just because, not
necessarily your earning a lot because you'd be in retirement
at that point, but because, you know, there's a new
administration and a new Congress and they're raising rates on taxes.
And that is a likely outcome in the future. So
they studied thousands of of retirement accounts and basically determined that,
(37:30):
at least based on the ones they evaluated, the optimal
formula was you take your age, you add 20 to it,
and that's how much you put in pre-tax. And then
you put the balance in the after tax. So if
you're 50, you'd put 70% in the pre-tax and you'd
put 30% in in the after tax. Doesn't mean that's foolproof,
(37:52):
but at least based on their studies, that was what produced,
you know, the most optimal outcomes. Does that make sense?
S7 (38:01):
Yes.
S1 (38:02):
Okay. So, you know, you may want to look at
your percentages and just see based on the total dollars
going in, how much is of that is going into
a pre-tax environment. How much is going to an after
tax environment. And if you wanted to apply this age
plus 20 into pre-tax, then you could evaluate whether you
(38:24):
need to bump that up or down accordingly.
S7 (38:28):
Okay.
S1 (38:29):
Okay.
S7 (38:30):
I appreciate it. I was just wondering, I wasn't sure
if necessarily with them changing the laws for the overtime,
if that would actually really affect anything. Um, because I
do cover the 25,000 with the overtime and I, I
(38:53):
haven't actually maxed out my 401 K per year, But
I'm right there at the cusp of maxing it out.
S1 (39:04):
Yeah, yeah. I mean, the overtime law changes really don't
affect whether you would use Pretax or Roth. Um, I mean,
that really is dependent upon taxes and whether you get
more benefit now from the deduction at a higher earning,
you know, period, versus, you know, getting the tax free
(39:24):
growth later and paying the taxes now. Um, you know,
I don't really see any necessarily any connection to the
overtime changes that would affect that one way or the other.
It's really just, you know, given the unknowns and given
where you're at in terms of what you're earning right now,
just trying to find that optimal mix between the pre-tax
(39:46):
and Roth, I like you having both buckets growing for
the future, because then you could choose down the road
when you're ready to start taking withdrawals to supplement your income.
Which bucket is more effective given the environment that we're
in at that point, which we don't know today. Um,
so I think going back to that percentage, or at
least that formula of your age plus 20 into pre-tax
(40:08):
is about as good as you're going to find in
terms of where you go from here. So hopefully that helps.
We appreciate your call today. Lord bless you. Quickly to Florida. Hamilton,
how can I help?
S8 (40:18):
Yes, I have a relative who have siblings. They inherited
property and they're getting calls from people from out of
town wanting to help them sell the property. And I
was curious, would there be a good CTA that could
be helping them?
S1 (40:37):
Yeah. Um, in terms of a real estate professional or
an attorney, what do you thinking?
S8 (40:45):
Um, since it's real estate, I would think. Real estate attorney.
S1 (40:50):
Yeah, yeah. Um, yeah. I mean, I think having somebody
who can walk alongside them just to make sure. What
is the title, how is it structured, who you know,
what is the ownership structure? And making sure that, uh,
you know, ultimately that's handled properly? Uh, just given that
it's an inheritance and there's several properties, uh, and you're
(41:10):
going to want to make sure everything's free and clear,
and then you're going to want, you know, the executor
should be able to help you understand, you know, if
it was left, if any of the properties were left
to multiple errors, kind of what is that ownership structure
now and what portion belongs to each person? You got
to sort all that out. And then ultimately you're going
to need a real estate professional that's, you know, really
(41:33):
skilled in not only real estate, uh, transactions, but also
has some expertise in the particular locale of where these
properties are. That's where you're going to be able to
maximize the value. I think all of that could be
a referral from a certified Kingdom advisor there in Florida,
because any C.K. would have not only an estate planning
(41:54):
attorney that they would work with regularly, or a couple
of them, but probably have a real estate professional that
they could refer you to. So I would head to
find a. Com and then reach out to those individuals,
let them know you listen to this program and just
ask for a referral, and they should be able to
help you. Okay.
S9 (42:13):
Thank you for taking my call.
S1 (42:14):
Absolutely. Hamilton. Lord bless you, sir. Well, as we wrap
up here today, just a quick reminder. If you are
a client of a certified Kingdom advisor, I need your
help to take a survey that's going to be a
part of a national research project we're doing, if you'll
go to. That would be a big help. If you
want to support our work between now and the end
of the year, every gift doubled. At least give big
(42:38):
thanks to Tahira, Taylor, Omar and Josh. Faith and Finance
Lives a partnership between Moody Radio and Faith fi. Come
back and join us tomorrow. We'll see you then. Bye bye.
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