September 30, 2025 • 43 mins
Proxy voting is one way to make your voice count for God’s Kingdom. If you have a 401(k) or an IRA, you may not realize that proxy voting gives you a voice in the companies you own—and it can be a way to live out your faith. As stewards, we’re called to reflect our Christian values, even in how our investments influence the marketplace. But what does that look like in practice? On the next Faith & Finance Live, Rob West and Will Lofland explain. Then, it’s on to your calls. That’s Faith & Finance Live—biblical wisdom for your financial journey. 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 (00:04):
The following program was pre-recorded so our phone lines are
not open.
S2 (00:08):
If you have a 401 K or an IRA, you
may not realize that proxy voting gives you a voice
in the companies you own. And it can be a
way to live out your faith. Hi, I'm Rob West.
As stewards, we're called to reflect our Christian values even
in how our investments influence the marketplace. But what does
that look like in practice? Will Loughlin joins us today
(00:30):
to explain. Then we have some great calls lined up.
But please don't call in today because this program is prerecorded.
This is faith and finance. Live. Biblical wisdom for your
financial decisions. Well, our guest today is my friend Will Lofland,
managing director of Investments distribution at Guidestone, an underwriter of
(00:53):
this program. Well, great to have you back with us.
S3 (00:56):
Well thanks, Rob. Glad to be back with you and
discuss great topics for your audience.
S2 (01:00):
Well, it really is an important topic. But before we
go deeper, help us understand exactly what is proxy voting
and how does it affect regular investors?
S3 (01:10):
Yeah, absolutely. Rob. Well, it's probably a pretty obscure topic
that most investors have never really even looked at before
or wanted to care about. But proxy voting is really
just the basic concept of if you own stock in
a company, uh, you have some partial ownership and you
get rights with that, which is voting on key corporate issues. Um,
(01:32):
and even the opportunity to put forward ballots where you
can try to promote a particular topic with a company.
S2 (01:38):
Yeah. And that's a big deal because you're getting influence
with the biggest companies in America. Now, if most of
our money is in mutual funds, or let's say retirement
accounts will do, we actually still have a say when
it comes to voting?
S3 (01:52):
Yeah. So retirement accounts are where most Americans do have
most of their investments today. And so a lot of
that is through things like mutual funds. Um, so if
you have a mutual fund, you, the investor yourself in
the mutual fund don't have the vote. The vote sits
with the fund company that you invest with. Um, and
so that's the way it works for most people. So
(02:14):
in the case of someone like Guidestone or other fund companies, um,
it is our policy, uh, that chooses to vote how
those shares are voted.
S2 (02:24):
Well, and this is why it's so important that you
engage with and understand the faith based investing providers out
there like Guidestone. So we'll share Guidestones approach on this.
How do you manage proxy voting at the firm?
S3 (02:38):
Yeah, absolutely. So for us, we chose in 2023 to
bring proxy voting in-house at Guidestone. And that was the
opportunity for us to use our biblical worldview, uh, and
allow Scripture to shape how we voted those shares, um,
because we thought biblical principles should be what we put
forward and the reason that we chose to do that
(02:59):
had to do with the the government basically changing the
kind of proposals that got put forward by individual shareholders.
And it wasn't these traditional very in the weeds business
issues that were there. You were starting to see a
prevalence of social issues that were really non-biblical, that were
being forced on companies. And we wanted to be able
(03:20):
to not only combat that, but to positively put forward
our biblical values on behalf of our investors.
S2 (03:26):
I know it's been incredibly effective, will give us a
real world example of how proxy voting has allowed you
to speak up on these issues.
S3 (03:34):
Yeah, absolutely. So, um, when I think of one of
the critical areas that was there was the concept of debunking, um,
you actually saw some large banks, JP Morgan Chase, Bank
of America, um, who were found to have issues where
they debunked Christian entities. Um, and so for us as
a shareholder in both of those Banks. We had the
(03:56):
opportunity to work with a coalition of shareholders to to
try to put forward resolutions and gain commitments from those
organizations to strengthen their policies, to make sure that Christians
and conservatives weren't being debunked for their particular views. Um,
and ultimately were successful with both of those companies to
get them to change their policies, um, to, to explicitly
(04:20):
allow Christian organizations to have services and that their viewpoints
were not going to get services denied.
S2 (04:27):
What a powerful example. Well, we've got about 30s left
for Christians who might be listening today and wondering, does
their vote really make a difference? What would you say?
S3 (04:38):
Yeah, I would say 100%. Their vote does make a difference.
We are very committed to this idea that the world
can be transformed by Christian, uh, investing. And one of
the ways you do that is by using all available
tools as an investor to promote your Christian worldview, and
that's what we're committed to by voting with a Christian perspective.
S2 (04:59):
I love it. Well, we're so honored to be partnered
with you, Will. Thanks for your time today.
S3 (05:03):
All right. Thanks, Rob. I appreciate being here.
S2 (05:05):
Folks. As followers of Christ, we're called to shine his
light in every area of life. And that includes the
boardroom and proxy voting is one of those ways. Our
guest has been Will Laughlin with Guidestone Financial Resources. You
can learn more at Guidestone funds. That's Guidestone. We'll be
(05:26):
right back. Great to have you with us today on
Faith and Finance Live. I'm Rob West. Our team is
away from the studio today. We're not here, so don't
call in. But we lined up some great questions in
advance and we'll get to those in just a moment. First,
(05:46):
you know, as I look at the scriptures, one of
the big ideas that literally jumps off the page when
you look at this area of finance in light of
a biblical worldview, is the idea of contentment. We should
foster an attitude of contentment. And I think that's the
first understanding, is that it is, in fact, an attitude.
Matthew 633 says, but seek first the kingdom of God
(06:08):
and his righteousness, and all these things will be added
to you. If our aim is the kingdom, then that
changes our perspective. It makes it focused on the eternal,
not the temporal. And that's a game changer. Well then,
from an attitude, we learn that contentment is in fact
learned by the apostle. Paul said it this way, not
(06:29):
that I'm speaking of being in need, for I have
learned in whatever situation I am to be content. That's
Philippians 411. So it's a learned behavior. It's also a choice.
You know, I can choose to be content in every
circumstance rich or poor, happy or sad, easy or difficult.
Because as Christ followers. Well, our position in Christ never changes,
(06:53):
and I think that's an important reminder for us today.
And perhaps it could change your whole approach to your money.
All right. Let's get to our calls today that we've
lined up for you. We'll begin in Illinois today. Hi, May.
Go ahead.
S4 (07:06):
Thank you for taking my call. I have a credit
card with a company with a balance of about $9,300.
And they calculate the interest rate based on an average
daily balance. And there's a different rate for cash advances,
which is about 3% higher than the rate on purchases. Yes.
(07:29):
And even when there are no cash advances, I'm still
being charged interest. My question is, how can I pay
this off in a short period of time and avoid
these high, difficult to understand interest charges?
S2 (07:45):
Yeah, yeah. Very good. Uh, it is not uncommon, for
you to have two different credit cards issuers. So in
your case, Capital One C cash advances as riskier than purchases.
And you know, the credit scoring data will show that
card users who take out cash advances typically carry higher
(08:08):
what are called debt to income ratios. So the amount
of debt you have versus your income tends to be higher.
They use a larger portion of their credit limit. They're
often late on payments at least more often. And so,
you know, they also recognize that they collect what are
called merchant fees for purchases. So they charge the merchant
(08:33):
where you're, you know, using your credit card to make
a purchase. The merchant is taking a portion of that
and sending it to the issuer, in your case, Capital One.
And as a result of that, you know, that's one
of the ways that they make money. Well, with a
cash advance, they can't do that. There's no merchant to
charge that back to. And so part of the way
(08:56):
they make up for that just in terms of their
own profit, uh, is in fact by charging a higher
interest rate. So what you're experiencing there is pretty typical.
You know, I think the key for you May is
really to dial back your lifestyle spending, try to get
out of debt as quick as you can. Uh, did
you say the total amount of debt that you have is, um,
(09:17):
is right at 9000? Is that right?
S4 (09:20):
Yes, 9300.
S2 (09:22):
Okay. And how does that break down? Uh, you know,
between the cash advance versus the charges?
S4 (09:29):
Well, for in this particular case this month, with the
$9,300 balance, there were no cash advances.
S2 (09:38):
Okay.
S4 (09:38):
But of course, I'm being charged the interest rate on
my previous cash advances.
S2 (09:43):
Yes. Uh, and how does that break down? Just in
terms of the balance you're carrying, how much of it
is as a result of cash advances you did in
the past versus charges?
S4 (09:55):
Um, it's about 8200 in purchases and 1160, uh, in
cash advances.
S2 (10:03):
Okay. Got it. Yep. Um, have you looked at, uh,
what's called a credit counseling program? Have you heard me
talk about that in the past?
S4 (10:12):
Yes, I have.
S2 (10:13):
Okay. Yeah. I mean, that would be one thing to consider. Now,
you can pay off the cash advance portion of your
credit card balance, and and I would do that as
soon as you can. So any payment you make, uh,
according to the credit card Act going back to 2009,
any payment you make above the minimum required has to
(10:35):
be applied to the balance with the highest interest rates first.
And since that cash advance is typically going to be
the case, you know that, uh, it's really important for
you to be able to send beyond just that minimum
scheduled payment so we can get that cash advance portion down.
The other option would be to, you know, move the
(10:57):
whole account over into a debt management program, where we're
going to see a pretty significant reduction in the interest
rate that you're paying. And, you know, that will allow
you to get out of debt much quicker. Um, however,
the card does have to be closed at least while
it's in the program, so you would not be able
to use it. Um, which sounds like the better option
(11:19):
for you.
S4 (11:20):
I think, um, maybe just pay above the minimum payment.
S2 (11:26):
Yeah, yeah, you certainly could do that. I mean, obviously
you're still paying that higher interest rate on whatever portion
each month is subject to the prevailing rate, and you'd
pay a lot less if you if you did it
through credit counseling. But at the very least, I would
just really try to limit your lifestyle spending and and
(11:47):
get that, you know, extra going toward the reduction of principal,
which again is going to first be applied to the
cash advance portion.
S4 (11:57):
Okay. Now is it going to affect my credit if
I move it to a a debt management program?
S2 (12:04):
Yeah, it's an interesting question. Um, the fact that you're
in debt management. So when you enroll in the program
that is not factored into the credit scoring algorithm. So
that in and of itself does not affect your credit score.
What will affect your score is the fact that you
have that account has been closed. And so, you know,
(12:25):
it should be fairly minimal. You know, as far as
I'm concerned, I'm far more interested in you getting out
of debt and paying as little interest as possible along
the way than I am. Whether or not your score,
you know, sees a temporary Reduction because you've got a
card that's been closed. Um, especially if you're not out
(12:47):
looking to buy a house or a car anytime soon.
That credit score is really, you know, not very important.
Doesn't mean we don't want to try to keep it
as high as we can, but you getting out of
debt is far more important. So I think the answer
is yes. It does affect the score, but not just
by virtue of going into the program. It would just
be like your score would be affected if you closed
(13:09):
any account, regardless of whether or not you're in credit counseling.
S4 (13:13):
Sure I understand.
S2 (13:15):
Got it. So the next step, if you wanted to
go that route or at least explore it, would be
to head to our friends at Christian Credit Counselors. Uh,
that's Christian credit counselors. Dot. Uh, you could also call
them they have a toll free number, uh, that you
could reach out to them on 800 557 1985. Um,
(13:39):
but they're wonderful. They're all believers, and they'd be delighted
to serve you.
S4 (13:43):
Okay. Thank you.
S2 (13:44):
Okay. Thanks for your call, May. Call anytime. Hey, before
we head to this break, just a quick reminder. Our
team is away from the studio today, so don't call in.
We did line up some great questions in advance, and
when we come back from this break, we'll have an
opportunity to hear some of those questions. Let me also
remind you that if you have a question, you'd like
to get in front of us and get an answer to.
(14:05):
You can always send it in electronically. That's right. The
way to send an electronic question is just to head
to Moody Radio.com. You'll see the form there on that
page where you can submit your question. We try to
get to a few of those each week on the air. Again,
Moody Radio.com. Back with more on Faith and finance. Live
(14:27):
right after this. Stick around.
S5 (14:37):
This is faith and finance. Live with Rob West. Hey,
if you hear a phone number mentioned today, please ignore
that number and don't call us because today's broadcast was
previously recorded. But we think the upcoming information will help
you and make you a wise steward of what God's
given you. So please stay tuned.
S2 (14:56):
Uh, before we head to the phones in the news,
Fico is reporting that for only the second time in
a decade, the national average credit score has fallen. The
average Fico score now stands at 715. That's a one
point drop from January and a full two points below
the average score a year ago. That still leaves the
(15:18):
nation's average credit score in Fico's so-called good range. But
borrowers with that, uh, low a score will likely face
higher interest rates and may need to put more money
down before securing a loan to get the lowest interest
rates and greatest chance for approval. Borrowers generally need a
Fico score of at least 760. Fico says two key
(15:43):
factors contributed to the score drop number one was resumption
of student loan reporting. So after a multiyear pause under
the CARES act, as of February, federal student loan delinquencies
are once again being reported on credit files. And then secondly,
higher interest rates leading to a rise in delinquencies. The
(16:05):
share of borrowers with a 90 plus day delinquency on
the books increased to 8.3% in February. That's the first
time this figure surpassed pre-pandemic levels. Here's what I would say.
If you're struggling to keep up payments on consumer debt, uh,
I would urge you to, uh, seek out some counsel
for that. Um, we just talked to me about this
(16:28):
a moment ago, but my preferred approach to get out
of credit card debt once and for all, especially if
that balance is north of, say, $4,000. dollars is really
a Christian. Credit counselors. Debt management is the best way
different than debt consolidation, where you take out a new
loan and roll it all up into one new loan with,
(16:50):
you know, a lower interest rate. My experience is that
doesn't lead to long term success. It often extends the
payback term, and even with the lower rate, it takes
the pressure off, which often doesn't involve the borrower solving
the problem that got them into debt in the first place,
and therefore the credit card debt ends up coming back.
(17:11):
But now they've got a consolidation loan on top of it.
The other often referred to approach to paying off debt
would be debt settlement. I don't like that at all.
That's where you stop paying. You get into a past
due status, even collections, and then the debt settlement company
will come behind you in that situation and try to
(17:32):
negotiate a payoff. It trashes your credit. It could you
put you in a legal, uh, you know, spot where they,
you know, go after you and attempt to sue you
in the process? It's just not something you want to
be a part of. So that leaves debt management. That's
where you go into an existing program. But you have
to use a nonprofit credit counseling agency. They drop the
interest rates, uh, often to somewhere between 0 and 10%.
(17:56):
And you make one monthly payment to the credit counseling agency.
They pass it on to your creditors. Combination of that level,
monthly payment, the lower interest rate is going to help
you pay it off 80% faster. Uh, our preferred partner there,
and they have been for decades is Christian credit counselors.
They're a not for profit. They're all believers, and they'd
(18:17):
love to serve you. You'll find them at Christian credit counselors.
All right, let's, uh, dive into some more questions here today.
Let's go to Ohio. Diana, how can I help?
S6 (18:27):
Hello. Uh, I'm calling for a friend. Um, they have
a will. Her and her husband. They both signed a will.
And now he is the beneficiary. If something happens to
her and vice versa on her him. She is not
(18:49):
happy with the will now because he is going to
give all of the money she worked hard for to
his children. She has no children. She wants her money
to be given to her brother. Does she have? Can
(19:11):
she go ahead and get a new will without him
signing off on the old will?
S2 (19:16):
Mm.
S6 (19:16):
Help me out. I'm not sure.
S2 (19:18):
Yeah. I mean, at the end of the day, Diana boy,
there's a lot of issues going on here. There's. There's
both the legal side of this as well as, you know,
just the marital side of this in terms of open
and honest communication. Um, Um, and so they have children that, uh,
or at least he does that were from a prior marriage.
(19:39):
Is that right?
S6 (19:41):
That's right.
S2 (19:42):
Okay. Yeah. And has she talked to or does she
plan to talk to him about her desire or. She's
wanting to do this in secret?
S6 (19:51):
Well, she tried last night and he went off, she said,
and I just walked away. So he at this point,
she wants to keep it secret, I guess. She she
said she cannot talk to him.
S2 (20:06):
Yeah. Yeah. I mean.
S7 (20:08):
She's wanting a way out and I don't.
S6 (20:10):
Know.
S2 (20:10):
Yeah. Yeah. Well, yeah, I mean, I would say, you know,
I mean, at the end of the day, these are
financial issues and legal issues, but they're, they're bigger than
that because there are obviously other underlying issues here that
need to be addressed. And I realize how challenging this
can be. Uh, I mean, a lot of it has
to come down to from a legal standpoint, the state
(20:33):
in which she lives. And you know, how that state
approaches marital property. And then beyond that, there's just, you know,
this idea of them working through it ideally, um, you know,
with open and honest communication, with trust at the core.
And if there's not that trust, then obviously that's where
things are breaking down. And so I think the you know,
(20:54):
the question is how do we approach that? I think,
number one, making it a matter of prayer. Number two,
could there be someone else brought into the the conversation,
whether it's a pastor or a counselor who could kind
of help them work through this, or even a financial
advisor who's a godly advisor, like a certified Kingdom advisor
that could help, you know, navigate this because it's not uncommon. Um,
(21:16):
you know, even though I'm, I think, uh, prenuptial agreements
are problematic, they can create disunity and a lack of trust.
And so I would say generally I discourage them. But
when you're bringing kids into a second marriage. It's not uncommon,
even in a God honoring marriage, with open and honest
communication built on trust, to say, listen, there are assets
(21:39):
that are accumulated prior to our marriage. And, you know,
I want to make sure that, you know, my those
go to my kids, even though we're going to take
everything that comes in from the day we marry forward
and we're going to treat it as marital property. And,
you know, we're going to distribute it according to both
of our wishes. Let's do this. Stay on the line.
We'll finish up after the break. We'll be right back.
S5 (22:07):
You're listening to Faith and finance live, and you can
find us online at Faith. However, today we are not live.
So if you hear that phone number, please don't call.
But do stay with us. There's lots of good information ahead.
S8 (22:23):
Before the break, we were talking.
S2 (22:25):
To Diana in Ohio. She's calling for a friend. Her
friend and her husband have a will. They both executed it. Uh,
they have left each other as their primary beneficiary. But
her friend is not happy with how they made that decision.
It's a second marriage. She has kids from, uh, a
prior marriage, and she's wanting to leave, uh, a portion
(22:48):
of the estate. Perhaps the portion she accumulated even prior
to the marriage to her, uh, brother, uh, as a
beneficiary instead of her husband. And, you know, I was saying, Diana,
there there are legal ramifications to this with respect to
just marital property. And, you know, you would need to
(23:08):
talk to an attorney or they would, uh, about that
to understand in the state in which they live, how
that would be approached. Um, you know, it is possible,
but it also, you know, could be that you'll find that,
you know, there are at least half of it, uh,
if not more, you know, could be considered marital property
and just automatically go to him if she were to.
(23:30):
To pass away before him. I think with respect to
just the, you know, being a taking a God honoring approach, um,
you know, I think it really does start with number
one prayer. Uh, just asking God to be in the
conversation that's rooted in truth and grace and stewardship. And
I think they need to or she needs when she
(23:52):
approaches it to start with shared values. You know, I
want to talk about something that's important to me and
how we can approach this together with unity and wisdom.
And then, I think, clarify her intentions. Uh, this isn't
just about the money. It's, you know, being, uh, honoring relationships. And,
you know, here's my desire with, you know, whatever portion
it is, maybe it's the portion she had accumulated prior
(24:14):
to the second marriage. Uh, I think invite collaboration rather than,
you know, demanding an agreement. Um, and say, hey, can
we pray and talk about a way to structure our
state that reflects, you know, our love for each other.
And you know, my love for, you know, my kids or,
you know, family members, whatever it is. And then, I think,
(24:36):
work through those practical options together. Now to your point.
Perhaps she's tried this. Maybe it was in that kind
of style of grace and truth. Maybe it wasn't. But
regardless of how it went down, she felt like he
was not willing to entertain that. And so at this point,
I think, again, remember, it's more important than the money.
God wants our hearts. He wants unity in this marriage.
(24:59):
And so I think it's worth, you know, continuing to
lean into it and see if he'd be willing to
invite somebody else into the conversation. You know, at the
end of the day, I just don't think it's wise
for her to try to go behind his back. I
just don't think that's God honoring in a marriage. I think,
you know, she needs to do the hard work in
(25:20):
trying to, uh, you know, open up and foster communication,
built on trust. And to the extent he refuses. You know,
I think she needs to try to get somebody else
involved if he's willing to go there. Does that all
make sense, though?
S6 (25:35):
Yes.
S2 (25:36):
Of course, there's not an easy solution to this, and
I'm not pretending there is. But it is, I think,
both legal and relational. And when it comes to a
marriage under Christ, I think, you know, we need to
pursue God's heart when it comes to anything in marriage,
even those difficult conversations. And to the extent there's something
(25:58):
underlying the the financial side of this, which there often
is because money is just symptomatic money decisions are symptomatic
of heart issues. And maybe there's a misplaced trust or,
you know, there's a lack of unity. That's obviously what
needs to be solved first and foremost and is far
more important than the money after her passing. So, um,
(26:20):
let's just ask the Lord to give you wisdom as
you walk alongside her. And then, you know, to intervene
in that conversation and perhaps soften his heart, give her
the ability to communicate, you know, with grace and truth
and to the extent there needs to be, you know,
a repair in the marriage of the marital relationship and
(26:41):
unity that that's, you know, the primary outcome that we
focus on here. And, and that may involve counseling or
a pastor or someone else to get involved. But I
hope that's at least giving you some things to think about.
I know these are tough issues, and I'm delighted your
friend has you to walk alongside her, seeking the Lord's
wisdom here. Uh, thank you for your call today.
S8 (27:01):
Hey, before we.
S2 (27:01):
Head back to the phones, I want to answer one
of your emails. By the way, we received these emails
all the time at ask rob@faith.com. Feel free to send
your question along to be read on the air again.
Ask rob@faith.com. That's faith fi.com. This one comes to us
from Christy. She writes. Hi Rob, I love listening to
your show. I'm in my 20s and I'm saving up
(27:24):
for a house. I'm not sure about the best way
to invest my current savings. Should I buy a CD
or invest in the stock market? I'd appreciate any advice.
Thanks so much. You know, I think, Kristi, the key
here is your time horizon. So if you're planning on
buying this house, let's say in less than five years,
then I don't want you investing in the stock market.
(27:45):
We really need a five plus year time horizon. So
I love that you're saving. And I realize it may
take some time, but you're likely going to want to
save that in a high yield savings account. If you
have some money already put aside, you could lock it
up in a 15 or 18 month CD and get
a little bit more interest. But you don't want to
invest it because the key is to have that money
(28:07):
available when you're ready to make the purchase. The problem
with investing in the stock market is those stocks may
be down. At the time. We just don't know what
would be going on at that moment, and you may
have to sell them at a loss. By the way,
make your savings target 20% for a down payment at
a minimum. And then let's make sure that mortgage payment,
including taxes and insurance, is no more than 25% of
(28:31):
your take home pay. That's going to ensure that you
have enough left for everything else. But you can do this.
Stay at it, save diligently, and you will be ready
to make that purchase in no time. And again, don't
buy too much house even though these prices are still
pretty high. All right, let's go back to the calls
we've lined up for today. Let's go out to Virginia. Hi, Richard.
(28:53):
Go ahead.
S9 (28:54):
Hi. I've just got a question. I'm trying to balance
out biblical priorities. Um, we have always paid our tithes
on the gross, and we, um, got out of debt,
saved for another primary home. Um, but we ended up
having to get into a small mortgage to get that
(29:17):
primary home. So we've been in it for a little while, and, um,
it's got some repairs that we have to get done
to maintain the home. Yeah. And it just it just
dawned on me, I'm wondering when we sold the other
home and bought this home. There was, uh, profit. It's
(29:39):
not taxable, but I'm wondering, uh, if we should be
paying a tithe on that. Um, I'm trying to balance
that with stewardship of maintaining the home, because these repairs
have to be done. And, you know, like I said,
we still have a small mortgage. So I'm also balancing
that with the priority of paying off debt. And I'm
(30:00):
just wondering with those three things, is it necessary to
pay a tithe on that?
S2 (30:04):
The two homes are unrelated when it comes to a tithe.
So I love the fact that you've been consistent. Tither. Uh.
That's great. A tithe is on the increase. The word
tithe means a 10th, even though in the Old Testament
there was multiple tithes, in fact, three of them. Um,
but if you want to honor the Old Testament tithe,
and I like that as a starting point for your
(30:25):
giving giving systematic on the increase, it really wouldn't affect
that new home purchase. You would simply look at that
prior home and you would say, what was the increase?
And the true increase would be the selling price, minus
any improvements that increase the value of the home minus
the selling price. Um, or excuse me, minus the original
(30:47):
purchase price. So sale price minus improvements over the life
of the home, minus the original purchase price, that's going
to be your increase. And if you wanted to tithe
on it, that's what you would give on. We'll be
right back. Stay on the line. Delighted to have you
with us today on Faith and Finance Live. We're not
(31:07):
here today. Our team is away from the studio. This
is pre-recorded, so don't call in. But we've got some
great questions we lined up in advance before we go
to the phones. let me remind you, Faith, Fi and
Faith and Finance Live is listener supported. If you'd like
to be a financial partner, you can do that at Faith.
Com just click give thanks in advance. All right. Let's
head back to the phones. Arkansas is where we're going next. Hi, Eddie.
(31:30):
Go ahead.
S10 (31:31):
Hey I've got a my wife and I was married
for 40 years, and I lost her about three years ago.
And while within our marriage, she had two kids before
we married. And then we had one together. And then
we had to our house burnt, and then we had
(31:51):
to buy another house and some land. Now, since he
has passed away, I've remarried a few months ago, and
I was wondering if I pass away. Uh, will. And
then the the the house and land is still under
loan and it's in our name. Mine. And my late
wife's name is. If I pass away. Is there any way? Uh,
(32:16):
her two kids, her two previous kids, or our kid
together can boot my wife out now with me now.
Married to now? Or is that what I need to
do to get where they can't kick her out?
S2 (32:31):
Yeah. Uh, what what would be your ultimate objective there?
What is it that you and your your current wife
want to have happen when you pass away? If you
were to predecease her?
S10 (32:42):
Well, it would go to her, you know, it would
go to her. And that way it would just stay
with her until something happens to her or, you know, uh, I,
I don't want to kick her out, you know?
S2 (32:53):
No. Exactly. Right. Yeah. So basically, I would check with
an estate attorney. Uh, there's a couple of options here, uh,
where you could do what's called, uh, a life estate
with remainder to children or a traditional life estate deed.
And that would give your wife a lifetime right to
(33:14):
live in the property. And the heirs couldn't force a sale.
And then when she passes, the heirs would then, you know,
take full ownership and control of the property. Um, you know,
the other option is you could, um, you know, just
go ahead and put her name on it. And, uh,
you know, you all could own it together and then
it would be left to your full estate, um, and
(33:38):
pass according to you or and your wife's wishes, uh,
at that point. But if you're wanting this particular asset
because of your prior marriage to go to your kids
from your previous wife who passed, then that's where that
life estate could be a great option to give your
your current wife the ability to live in it for
the remainder of her life and then, uh, allow your
(34:00):
heirs to take ownership and control the property at her passing.
S10 (34:04):
Okay. Now she has three kids from a previous marriage also.
So if I let's just say if I passed and
she passed, it would go to her kids and my
one kid her her previous her, my late wife's previous
kids would have any grounds for it, would he?
S2 (34:23):
Well, it's totally up to what you all want. Um,
so I think that it needs to start with you
all having a conversation. And, you know, there's a couple
of approaches here. One approach is to say, listen, um,
you know, two become one flesh in marriage. And so
we're going to treat everything regardless of when we, you know,
when the Lord gave it to us, uh, we're going
(34:44):
to treat everything as marital property. And so we're going
to co-own everything. And that means you and or she
will get to enjoy it during your lives, regardless of
who the Lord takes home first. And then you decide
as a couple how you want that distributed. Once you
both pass away how much to heirs and maybe it
gets split evenly, maybe it doesn't, and how much to
(35:07):
to ministry. I mean, those are really the two only
two places you can go. Sometimes when it's a second marriage,
you know, we will come into this conversation and say, hey,
there are certain assets that were accumulated prior to the
second marriage, and because we have kids from a previous marriage,
we want to take some of those assets that were
accumulated before the new marriage and make sure they go directly, uh, to,
(35:32):
you know, my kids or her kids. And that can
be done as well. You all just need to talk
through that with grace and trust and openness, decide what
you want to do. And then an estate attorney can
draft the documents to make any of that happen. Uh,
you know, based on the conversation you have. Does that
make sense?
S10 (35:52):
Yes. Yeah. Yeah it does. More planning than what it
was before and everything. So. But, uh, me and her
planning on. So we ain't worried about it.
S2 (36:01):
Okay. Very good. Yeah. So I think the next step
is to visit with a godly estate attorney. Talk through
your wishes, make sure you guys are clear and on
the same page before you get there, but as long
as you are. Share your wishes. And then that attorney can,
you know, draft the legal documents to make all of that. Uh,
so that, uh, you've got all the plans in place
(36:21):
and there's no more guessing involved. Hey, thanks for your
call today. Eddie, let's go to Louisiana. Hi, Barbara. Thank
you for holding. How can I serve you today?
S11 (36:30):
Thank you. Thank you for taking my call. Yes, ma'am.
I'm soon to be 92. Wow. And I don't intend to, uh,
buy another house or a new car or anything like that.
And I'm wondering if I should put a hold on
my credit score, freeze my credit scores.
S2 (36:52):
Yes, ma'am. Well, uh, happy early 92nd birthday, Barbara. Thank you.
Thank you for calling today. Yes, ma'am. I think that, uh,
putting that freeze would make a lot of sense, because
to your point, you're not looking to make any transactions
or borrow any money anytime soon. And really, although it's minimal,
(37:13):
that's probably the only downside to the freeze is just
the hassle factor of you having to unfreeze or thaw
your credit for the purpose of seeking a loan. But
if you're not doing that, there's no reason why you
wouldn't want to freeze it. That's just going to stop
somebody in their tracks if they were to somehow come, uh,
you know, to access your personal information and then try
(37:36):
to impersonate you and open an account in your name,
they would not be able to do so with that
freeze in place. So I like that a lot. I
think that's probably your best deterrent, other than the options
that I mentioned a moment ago. And that is just
really be on your guard, no matter how convincing somebody
is that calls you or threatens you over the phone, um,
(37:58):
or send you an email that looks legitimate. Just don't
give the information through any of those means.
S11 (38:05):
Okay, I have another question.
S2 (38:06):
Yes, ma'am.
S11 (38:07):
I used a credit card that has a $3,000 limit
when I buy things that I charge over the phone,
like from Amazon. Yes. And would it be better, safer
for me to use PayPal or something like that rather
(38:27):
than use my credit card?
S2 (38:29):
No, ma'am, I don't think so, because the nice thing
about the credit card is that there are protections there.
Number one, they are very adept at identifying fraudulent activity.
You know that example I mentioned a moment ago about
the text message from the Florida SunPass in that situation,
(38:50):
as soon as that card was added to the Apple Pay,
the credit card company happened to be Wells Fargo, immediately
identified it, shut it down, and was in touch with
the the cardholder. And so you get that added protection there.
You also get the guarantees in that if somebody was
to gain access to your information and charge it, as
(39:13):
long as you identify it in a reasonable period of time, usually,
you know, within 30 to 60 days and you report it,
you are not responsible for one bit of it. And
so you have that added protection. I think, uh, on the, uh,
the credit card, uh, even more so than than the PayPal,
in my view.
S11 (39:33):
Thank you so much.
S12 (39:34):
All right. You're very welcome.
S11 (39:36):
About knowing that.
S12 (39:37):
Thank you. Very good.
S2 (39:38):
Barbara, call anytime if I can help you. Thanks for
being on the program today. Uh, let's go to Kentucky. Hi, Elijah.
How can I help.
S13 (39:47):
In on you, Rob.
S2 (39:49):
Uh, say that again, sir.
S13 (39:51):
God blessing on you.
S12 (39:52):
Rob.
S2 (39:52):
Well, thank you. I'll take that. I appreciate that, Elijah.
How can I help you today, sir?
S13 (39:58):
Uh, I'm calling on behalf of my friend. She's a
senior citizen. And she's renting an apartment. She has a
lease and she does not have a cell phone or
a computer. The landlord decided to bring internet to the
entire property, and they want to increase her rent by
(40:19):
$70 for the internet. Can they do that?
S12 (40:23):
Mhm.
S2 (40:24):
Yeah. It's a good question. Um, you know I think
the first question would just be, uh, whether or not
they can change the rules or raise the rent mid,
mid lease without the tenant's consent. Um, so in terms
of the rent increases and rule changes, typically, you know,
(40:44):
they can raise the rent at the end of the
lease term, not during an active lease. Uh, for year
long leases, at least 30 days notice is required before
the lease ends. And for month to month, uh, that
30 days is also required. But, you know, typically the
changes to the lease terms, including rules, require mutual agreement
(41:08):
from both the landlord and the tenant. So, um, you know,
I would perhaps challenge that if, in fact, you know,
she's Middle East with regard to, you know, what they're
saying in terms of an additional expense that was not
disclosed or a part of the initial lease when she
signed it?
S13 (41:26):
I see. So when leases expire, they can add the
$70 to her new lease. Even she does not have
a cell phone or an internet.
S12 (41:39):
Absolutely.
S2 (41:40):
Yeah. Because they're able to determine, you know, what they
roll into that in terms of features and utilities and expenses.
Whether or not somebody wants to take advantage of it,
they certainly can put it in as long as they
disclose it. But if it's Middle East, I would have
her push back on that and see if she can
at least delay it before she has to make a
decision on renewing. Thanks for your call, Elijah. Well, we're
(42:03):
about out of time today. Before we go, let me
remind us why we do what we do here on
this program. Every day we gather for faith and finance
live because we recognize we all have a high calling.
We're money managers for the King of kings, which means
we're to be found faithful as we manage God's resources, faithfulness,
(42:23):
obedience over a long period of time, applying the wisdom
of God's Word to every area of our lives. And
that includes our finances. So thanks for being here today.
Thanks for calling and for writing and for your emails.
We love to do what we do in serving you
to be wise stewards of God's money. Want to say
thanks to my team today Clara, Deb, Amy and Jim
(42:44):
couldn't do it without them. Faith and finance live as
a partnership between Faith Fi and Moody Radio. We'll see
you next time. God bless you. Bye bye.
The following program was pre-recorded so our phone lines are
not open.
S2 (00:08):
If you have a 401 K or an IRA, you
may not realize that proxy voting gives you a voice
in the companies you own. And it can be a
way to live out your faith. Hi, I'm Rob West.
As stewards, we're called to reflect our Christian values even
in how our investments influence the marketplace. But what does
that look like in practice? Will Loughlin joins us today
(00:30):
to explain. Then we have some great calls lined up.
But please don't call in today because this program is prerecorded.
This is faith and finance. Live. Biblical wisdom for your
financial decisions. Well, our guest today is my friend Will Lofland,
managing director of Investments distribution at Guidestone, an underwriter of
(00:53):
this program. Well, great to have you back with us.
S3 (00:56):
Well thanks, Rob. Glad to be back with you and
discuss great topics for your audience.
S2 (01:00):
Well, it really is an important topic. But before we
go deeper, help us understand exactly what is proxy voting
and how does it affect regular investors?
S3 (01:10):
Yeah, absolutely. Rob. Well, it's probably a pretty obscure topic
that most investors have never really even looked at before
or wanted to care about. But proxy voting is really
just the basic concept of if you own stock in
a company, uh, you have some partial ownership and you
get rights with that, which is voting on key corporate issues. Um,
(01:32):
and even the opportunity to put forward ballots where you
can try to promote a particular topic with a company.
S2 (01:38):
Yeah. And that's a big deal because you're getting influence
with the biggest companies in America. Now, if most of
our money is in mutual funds, or let's say retirement
accounts will do, we actually still have a say when
it comes to voting?
S3 (01:52):
Yeah. So retirement accounts are where most Americans do have
most of their investments today. And so a lot of
that is through things like mutual funds. Um, so if
you have a mutual fund, you, the investor yourself in
the mutual fund don't have the vote. The vote sits
with the fund company that you invest with. Um, and
so that's the way it works for most people. So
(02:14):
in the case of someone like Guidestone or other fund companies, um,
it is our policy, uh, that chooses to vote how
those shares are voted.
S2 (02:24):
Well, and this is why it's so important that you
engage with and understand the faith based investing providers out
there like Guidestone. So we'll share Guidestones approach on this.
How do you manage proxy voting at the firm?
S3 (02:38):
Yeah, absolutely. So for us, we chose in 2023 to
bring proxy voting in-house at Guidestone. And that was the
opportunity for us to use our biblical worldview, uh, and
allow Scripture to shape how we voted those shares, um,
because we thought biblical principles should be what we put
forward and the reason that we chose to do that
(02:59):
had to do with the the government basically changing the
kind of proposals that got put forward by individual shareholders.
And it wasn't these traditional very in the weeds business
issues that were there. You were starting to see a
prevalence of social issues that were really non-biblical, that were
being forced on companies. And we wanted to be able
(03:20):
to not only combat that, but to positively put forward
our biblical values on behalf of our investors.
S2 (03:26):
I know it's been incredibly effective, will give us a
real world example of how proxy voting has allowed you
to speak up on these issues.
S3 (03:34):
Yeah, absolutely. So, um, when I think of one of
the critical areas that was there was the concept of debunking, um,
you actually saw some large banks, JP Morgan Chase, Bank
of America, um, who were found to have issues where
they debunked Christian entities. Um, and so for us as
a shareholder in both of those Banks. We had the
(03:56):
opportunity to work with a coalition of shareholders to to
try to put forward resolutions and gain commitments from those
organizations to strengthen their policies, to make sure that Christians
and conservatives weren't being debunked for their particular views. Um,
and ultimately were successful with both of those companies to
get them to change their policies, um, to, to explicitly
(04:20):
allow Christian organizations to have services and that their viewpoints
were not going to get services denied.
S2 (04:27):
What a powerful example. Well, we've got about 30s left
for Christians who might be listening today and wondering, does
their vote really make a difference? What would you say?
S3 (04:38):
Yeah, I would say 100%. Their vote does make a difference.
We are very committed to this idea that the world
can be transformed by Christian, uh, investing. And one of
the ways you do that is by using all available
tools as an investor to promote your Christian worldview, and
that's what we're committed to by voting with a Christian perspective.
S2 (04:59):
I love it. Well, we're so honored to be partnered
with you, Will. Thanks for your time today.
S3 (05:03):
All right. Thanks, Rob. I appreciate being here.
S2 (05:05):
Folks. As followers of Christ, we're called to shine his
light in every area of life. And that includes the
boardroom and proxy voting is one of those ways. Our
guest has been Will Laughlin with Guidestone Financial Resources. You
can learn more at Guidestone funds. That's Guidestone. We'll be
(05:26):
right back. Great to have you with us today on
Faith and Finance Live. I'm Rob West. Our team is
away from the studio today. We're not here, so don't
call in. But we lined up some great questions in
advance and we'll get to those in just a moment. First,
(05:46):
you know, as I look at the scriptures, one of
the big ideas that literally jumps off the page when
you look at this area of finance in light of
a biblical worldview, is the idea of contentment. We should
foster an attitude of contentment. And I think that's the
first understanding, is that it is, in fact, an attitude.
Matthew 633 says, but seek first the kingdom of God
(06:08):
and his righteousness, and all these things will be added
to you. If our aim is the kingdom, then that
changes our perspective. It makes it focused on the eternal,
not the temporal. And that's a game changer. Well then,
from an attitude, we learn that contentment is in fact
learned by the apostle. Paul said it this way, not
(06:29):
that I'm speaking of being in need, for I have
learned in whatever situation I am to be content. That's
Philippians 411. So it's a learned behavior. It's also a choice.
You know, I can choose to be content in every
circumstance rich or poor, happy or sad, easy or difficult.
Because as Christ followers. Well, our position in Christ never changes,
(06:53):
and I think that's an important reminder for us today.
And perhaps it could change your whole approach to your money.
All right. Let's get to our calls today that we've
lined up for you. We'll begin in Illinois today. Hi, May.
Go ahead.
S4 (07:06):
Thank you for taking my call. I have a credit
card with a company with a balance of about $9,300.
And they calculate the interest rate based on an average
daily balance. And there's a different rate for cash advances,
which is about 3% higher than the rate on purchases. Yes.
(07:29):
And even when there are no cash advances, I'm still
being charged interest. My question is, how can I pay
this off in a short period of time and avoid
these high, difficult to understand interest charges?
S2 (07:45):
Yeah, yeah. Very good. Uh, it is not uncommon, for
you to have two different credit cards issuers. So in
your case, Capital One C cash advances as riskier than purchases.
And you know, the credit scoring data will show that
card users who take out cash advances typically carry higher
(08:08):
what are called debt to income ratios. So the amount
of debt you have versus your income tends to be higher.
They use a larger portion of their credit limit. They're
often late on payments at least more often. And so,
you know, they also recognize that they collect what are
called merchant fees for purchases. So they charge the merchant
(08:33):
where you're, you know, using your credit card to make
a purchase. The merchant is taking a portion of that
and sending it to the issuer, in your case, Capital One.
And as a result of that, you know, that's one
of the ways that they make money. Well, with a
cash advance, they can't do that. There's no merchant to
charge that back to. And so part of the way
(08:56):
they make up for that just in terms of their
own profit, uh, is in fact by charging a higher
interest rate. So what you're experiencing there is pretty typical.
You know, I think the key for you May is
really to dial back your lifestyle spending, try to get
out of debt as quick as you can. Uh, did
you say the total amount of debt that you have is, um,
(09:17):
is right at 9000? Is that right?
S4 (09:20):
Yes, 9300.
S2 (09:22):
Okay. And how does that break down? Uh, you know,
between the cash advance versus the charges?
S4 (09:29):
Well, for in this particular case this month, with the
$9,300 balance, there were no cash advances.
S2 (09:38):
Okay.
S4 (09:38):
But of course, I'm being charged the interest rate on
my previous cash advances.
S2 (09:43):
Yes. Uh, and how does that break down? Just in
terms of the balance you're carrying, how much of it
is as a result of cash advances you did in
the past versus charges?
S4 (09:55):
Um, it's about 8200 in purchases and 1160, uh, in
cash advances.
S2 (10:03):
Okay. Got it. Yep. Um, have you looked at, uh,
what's called a credit counseling program? Have you heard me
talk about that in the past?
S4 (10:12):
Yes, I have.
S2 (10:13):
Okay. Yeah. I mean, that would be one thing to consider. Now,
you can pay off the cash advance portion of your
credit card balance, and and I would do that as
soon as you can. So any payment you make, uh,
according to the credit card Act going back to 2009,
any payment you make above the minimum required has to
(10:35):
be applied to the balance with the highest interest rates first.
And since that cash advance is typically going to be
the case, you know that, uh, it's really important for
you to be able to send beyond just that minimum
scheduled payment so we can get that cash advance portion down.
The other option would be to, you know, move the
(10:57):
whole account over into a debt management program, where we're
going to see a pretty significant reduction in the interest
rate that you're paying. And, you know, that will allow
you to get out of debt much quicker. Um, however,
the card does have to be closed at least while
it's in the program, so you would not be able
to use it. Um, which sounds like the better option
(11:19):
for you.
S4 (11:20):
I think, um, maybe just pay above the minimum payment.
S2 (11:26):
Yeah, yeah, you certainly could do that. I mean, obviously
you're still paying that higher interest rate on whatever portion
each month is subject to the prevailing rate, and you'd
pay a lot less if you if you did it
through credit counseling. But at the very least, I would
just really try to limit your lifestyle spending and and
(11:47):
get that, you know, extra going toward the reduction of principal,
which again is going to first be applied to the
cash advance portion.
S4 (11:57):
Okay. Now is it going to affect my credit if
I move it to a a debt management program?
S2 (12:04):
Yeah, it's an interesting question. Um, the fact that you're
in debt management. So when you enroll in the program
that is not factored into the credit scoring algorithm. So
that in and of itself does not affect your credit score.
What will affect your score is the fact that you
have that account has been closed. And so, you know,
(12:25):
it should be fairly minimal. You know, as far as
I'm concerned, I'm far more interested in you getting out
of debt and paying as little interest as possible along
the way than I am. Whether or not your score,
you know, sees a temporary Reduction because you've got a
card that's been closed. Um, especially if you're not out
(12:47):
looking to buy a house or a car anytime soon.
That credit score is really, you know, not very important.
Doesn't mean we don't want to try to keep it
as high as we can, but you getting out of
debt is far more important. So I think the answer
is yes. It does affect the score, but not just
by virtue of going into the program. It would just
be like your score would be affected if you closed
(13:09):
any account, regardless of whether or not you're in credit counseling.
S4 (13:13):
Sure I understand.
S2 (13:15):
Got it. So the next step, if you wanted to
go that route or at least explore it, would be
to head to our friends at Christian Credit Counselors. Uh,
that's Christian credit counselors. Dot. Uh, you could also call
them they have a toll free number, uh, that you
could reach out to them on 800 557 1985. Um,
(13:39):
but they're wonderful. They're all believers, and they'd be delighted
to serve you.
S4 (13:43):
Okay. Thank you.
S2 (13:44):
Okay. Thanks for your call, May. Call anytime. Hey, before
we head to this break, just a quick reminder. Our
team is away from the studio today, so don't call in.
We did line up some great questions in advance, and
when we come back from this break, we'll have an
opportunity to hear some of those questions. Let me also
remind you that if you have a question, you'd like
to get in front of us and get an answer to.
(14:05):
You can always send it in electronically. That's right. The
way to send an electronic question is just to head
to Moody Radio.com. You'll see the form there on that
page where you can submit your question. We try to
get to a few of those each week on the air. Again,
Moody Radio.com. Back with more on Faith and finance. Live
(14:27):
right after this. Stick around.
S5 (14:37):
This is faith and finance. Live with Rob West. Hey,
if you hear a phone number mentioned today, please ignore
that number and don't call us because today's broadcast was
previously recorded. But we think the upcoming information will help
you and make you a wise steward of what God's
given you. So please stay tuned.
S2 (14:56):
Uh, before we head to the phones in the news,
Fico is reporting that for only the second time in
a decade, the national average credit score has fallen. The
average Fico score now stands at 715. That's a one
point drop from January and a full two points below
the average score a year ago. That still leaves the
(15:18):
nation's average credit score in Fico's so-called good range. But
borrowers with that, uh, low a score will likely face
higher interest rates and may need to put more money
down before securing a loan to get the lowest interest
rates and greatest chance for approval. Borrowers generally need a
Fico score of at least 760. Fico says two key
(15:43):
factors contributed to the score drop number one was resumption
of student loan reporting. So after a multiyear pause under
the CARES act, as of February, federal student loan delinquencies
are once again being reported on credit files. And then secondly,
higher interest rates leading to a rise in delinquencies. The
(16:05):
share of borrowers with a 90 plus day delinquency on
the books increased to 8.3% in February. That's the first
time this figure surpassed pre-pandemic levels. Here's what I would say.
If you're struggling to keep up payments on consumer debt, uh,
I would urge you to, uh, seek out some counsel
for that. Um, we just talked to me about this
(16:28):
a moment ago, but my preferred approach to get out
of credit card debt once and for all, especially if
that balance is north of, say, $4,000. dollars is really
a Christian. Credit counselors. Debt management is the best way
different than debt consolidation, where you take out a new
loan and roll it all up into one new loan with,
(16:50):
you know, a lower interest rate. My experience is that
doesn't lead to long term success. It often extends the
payback term, and even with the lower rate, it takes
the pressure off, which often doesn't involve the borrower solving
the problem that got them into debt in the first place,
and therefore the credit card debt ends up coming back.
(17:11):
But now they've got a consolidation loan on top of it.
The other often referred to approach to paying off debt
would be debt settlement. I don't like that at all.
That's where you stop paying. You get into a past
due status, even collections, and then the debt settlement company
will come behind you in that situation and try to
(17:32):
negotiate a payoff. It trashes your credit. It could you
put you in a legal, uh, you know, spot where they,
you know, go after you and attempt to sue you
in the process? It's just not something you want to
be a part of. So that leaves debt management. That's
where you go into an existing program. But you have
to use a nonprofit credit counseling agency. They drop the
interest rates, uh, often to somewhere between 0 and 10%.
(17:56):
And you make one monthly payment to the credit counseling agency.
They pass it on to your creditors. Combination of that level,
monthly payment, the lower interest rate is going to help
you pay it off 80% faster. Uh, our preferred partner there,
and they have been for decades is Christian credit counselors.
They're a not for profit. They're all believers, and they'd
(18:17):
love to serve you. You'll find them at Christian credit counselors.
All right, let's, uh, dive into some more questions here today.
Let's go to Ohio. Diana, how can I help?
S6 (18:27):
Hello. Uh, I'm calling for a friend. Um, they have
a will. Her and her husband. They both signed a will.
And now he is the beneficiary. If something happens to
her and vice versa on her him. She is not
(18:49):
happy with the will now because he is going to
give all of the money she worked hard for to
his children. She has no children. She wants her money
to be given to her brother. Does she have? Can
(19:11):
she go ahead and get a new will without him
signing off on the old will?
S2 (19:16):
Mm.
S6 (19:16):
Help me out. I'm not sure.
S2 (19:18):
Yeah. I mean, at the end of the day, Diana boy,
there's a lot of issues going on here. There's. There's
both the legal side of this as well as, you know,
just the marital side of this in terms of open
and honest communication. Um, Um, and so they have children that, uh,
or at least he does that were from a prior marriage.
(19:39):
Is that right?
S6 (19:41):
That's right.
S2 (19:42):
Okay. Yeah. And has she talked to or does she
plan to talk to him about her desire or. She's
wanting to do this in secret?
S6 (19:51):
Well, she tried last night and he went off, she said,
and I just walked away. So he at this point,
she wants to keep it secret, I guess. She she
said she cannot talk to him.
S2 (20:06):
Yeah. Yeah. I mean.
S7 (20:08):
She's wanting a way out and I don't.
S6 (20:10):
Know.
S2 (20:10):
Yeah. Yeah. Well, yeah, I mean, I would say, you know,
I mean, at the end of the day, these are
financial issues and legal issues, but they're, they're bigger than
that because there are obviously other underlying issues here that
need to be addressed. And I realize how challenging this
can be. Uh, I mean, a lot of it has
to come down to from a legal standpoint, the state
(20:33):
in which she lives. And you know, how that state
approaches marital property. And then beyond that, there's just, you know,
this idea of them working through it ideally, um, you know,
with open and honest communication, with trust at the core.
And if there's not that trust, then obviously that's where
things are breaking down. And so I think the you know,
(20:54):
the question is how do we approach that? I think,
number one, making it a matter of prayer. Number two,
could there be someone else brought into the the conversation,
whether it's a pastor or a counselor who could kind
of help them work through this, or even a financial
advisor who's a godly advisor, like a certified Kingdom advisor
that could help, you know, navigate this because it's not uncommon. Um,
(21:16):
you know, even though I'm, I think, uh, prenuptial agreements
are problematic, they can create disunity and a lack of trust.
And so I would say generally I discourage them. But
when you're bringing kids into a second marriage. It's not uncommon,
even in a God honoring marriage, with open and honest
communication built on trust, to say, listen, there are assets
(21:39):
that are accumulated prior to our marriage. And, you know,
I want to make sure that, you know, my those
go to my kids, even though we're going to take
everything that comes in from the day we marry forward
and we're going to treat it as marital property. And,
you know, we're going to distribute it according to both
of our wishes. Let's do this. Stay on the line.
We'll finish up after the break. We'll be right back.
S5 (22:07):
You're listening to Faith and finance live, and you can
find us online at Faith. However, today we are not live.
So if you hear that phone number, please don't call.
But do stay with us. There's lots of good information ahead.
S8 (22:23):
Before the break, we were talking.
S2 (22:25):
To Diana in Ohio. She's calling for a friend. Her
friend and her husband have a will. They both executed it. Uh,
they have left each other as their primary beneficiary. But
her friend is not happy with how they made that decision.
It's a second marriage. She has kids from, uh, a
prior marriage, and she's wanting to leave, uh, a portion
(22:48):
of the estate. Perhaps the portion she accumulated even prior
to the marriage to her, uh, brother, uh, as a
beneficiary instead of her husband. And, you know, I was saying, Diana,
there there are legal ramifications to this with respect to
just marital property. And, you know, you would need to
(23:08):
talk to an attorney or they would, uh, about that
to understand in the state in which they live, how
that would be approached. Um, you know, it is possible,
but it also, you know, could be that you'll find that,
you know, there are at least half of it, uh,
if not more, you know, could be considered marital property
and just automatically go to him if she were to.
(23:30):
To pass away before him. I think with respect to
just the, you know, being a taking a God honoring approach, um,
you know, I think it really does start with number
one prayer. Uh, just asking God to be in the
conversation that's rooted in truth and grace and stewardship. And
I think they need to or she needs when she
(23:52):
approaches it to start with shared values. You know, I
want to talk about something that's important to me and
how we can approach this together with unity and wisdom.
And then, I think, clarify her intentions. Uh, this isn't
just about the money. It's, you know, being, uh, honoring relationships. And,
you know, here's my desire with, you know, whatever portion
it is, maybe it's the portion she had accumulated prior
(24:14):
to the second marriage. Uh, I think invite collaboration rather than,
you know, demanding an agreement. Um, and say, hey, can
we pray and talk about a way to structure our
state that reflects, you know, our love for each other.
And you know, my love for, you know, my kids or,
you know, family members, whatever it is. And then, I think,
(24:36):
work through those practical options together. Now to your point.
Perhaps she's tried this. Maybe it was in that kind
of style of grace and truth. Maybe it wasn't. But
regardless of how it went down, she felt like he
was not willing to entertain that. And so at this point,
I think, again, remember, it's more important than the money.
God wants our hearts. He wants unity in this marriage.
(24:59):
And so I think it's worth, you know, continuing to
lean into it and see if he'd be willing to
invite somebody else into the conversation. You know, at the
end of the day, I just don't think it's wise
for her to try to go behind his back. I
just don't think that's God honoring in a marriage. I think,
you know, she needs to do the hard work in
(25:20):
trying to, uh, you know, open up and foster communication,
built on trust. And to the extent he refuses. You know,
I think she needs to try to get somebody else
involved if he's willing to go there. Does that all
make sense, though?
S6 (25:35):
Yes.
S2 (25:36):
Of course, there's not an easy solution to this, and
I'm not pretending there is. But it is, I think,
both legal and relational. And when it comes to a
marriage under Christ, I think, you know, we need to
pursue God's heart when it comes to anything in marriage,
even those difficult conversations. And to the extent there's something
(25:58):
underlying the the financial side of this, which there often
is because money is just symptomatic money decisions are symptomatic
of heart issues. And maybe there's a misplaced trust or,
you know, there's a lack of unity. That's obviously what
needs to be solved first and foremost and is far
more important than the money after her passing. So, um,
(26:20):
let's just ask the Lord to give you wisdom as
you walk alongside her. And then, you know, to intervene
in that conversation and perhaps soften his heart, give her
the ability to communicate, you know, with grace and truth
and to the extent there needs to be, you know,
a repair in the marriage of the marital relationship and
(26:41):
unity that that's, you know, the primary outcome that we
focus on here. And, and that may involve counseling or
a pastor or someone else to get involved. But I
hope that's at least giving you some things to think about.
I know these are tough issues, and I'm delighted your
friend has you to walk alongside her, seeking the Lord's
wisdom here. Uh, thank you for your call today.
S8 (27:01):
Hey, before we.
S2 (27:01):
Head back to the phones, I want to answer one
of your emails. By the way, we received these emails
all the time at ask rob@faith.com. Feel free to send
your question along to be read on the air again.
Ask rob@faith.com. That's faith fi.com. This one comes to us
from Christy. She writes. Hi Rob, I love listening to
your show. I'm in my 20s and I'm saving up
(27:24):
for a house. I'm not sure about the best way
to invest my current savings. Should I buy a CD
or invest in the stock market? I'd appreciate any advice.
Thanks so much. You know, I think, Kristi, the key
here is your time horizon. So if you're planning on
buying this house, let's say in less than five years,
then I don't want you investing in the stock market.
(27:45):
We really need a five plus year time horizon. So
I love that you're saving. And I realize it may
take some time, but you're likely going to want to
save that in a high yield savings account. If you
have some money already put aside, you could lock it
up in a 15 or 18 month CD and get
a little bit more interest. But you don't want to
invest it because the key is to have that money
(28:07):
available when you're ready to make the purchase. The problem
with investing in the stock market is those stocks may
be down. At the time. We just don't know what
would be going on at that moment, and you may
have to sell them at a loss. By the way,
make your savings target 20% for a down payment at
a minimum. And then let's make sure that mortgage payment,
including taxes and insurance, is no more than 25% of
(28:31):
your take home pay. That's going to ensure that you
have enough left for everything else. But you can do this.
Stay at it, save diligently, and you will be ready
to make that purchase in no time. And again, don't
buy too much house even though these prices are still
pretty high. All right, let's go back to the calls
we've lined up for today. Let's go out to Virginia. Hi, Richard.
(28:53):
Go ahead.
S9 (28:54):
Hi. I've just got a question. I'm trying to balance
out biblical priorities. Um, we have always paid our tithes
on the gross, and we, um, got out of debt,
saved for another primary home. Um, but we ended up
having to get into a small mortgage to get that
(29:17):
primary home. So we've been in it for a little while, and, um,
it's got some repairs that we have to get done
to maintain the home. Yeah. And it just it just
dawned on me, I'm wondering when we sold the other
home and bought this home. There was, uh, profit. It's
(29:39):
not taxable, but I'm wondering, uh, if we should be
paying a tithe on that. Um, I'm trying to balance
that with stewardship of maintaining the home, because these repairs
have to be done. And, you know, like I said,
we still have a small mortgage. So I'm also balancing
that with the priority of paying off debt. And I'm
(30:00):
just wondering with those three things, is it necessary to
pay a tithe on that?
S2 (30:04):
The two homes are unrelated when it comes to a tithe.
So I love the fact that you've been consistent. Tither. Uh.
That's great. A tithe is on the increase. The word
tithe means a 10th, even though in the Old Testament
there was multiple tithes, in fact, three of them. Um,
but if you want to honor the Old Testament tithe,
and I like that as a starting point for your
(30:25):
giving giving systematic on the increase, it really wouldn't affect
that new home purchase. You would simply look at that
prior home and you would say, what was the increase?
And the true increase would be the selling price, minus
any improvements that increase the value of the home minus
the selling price. Um, or excuse me, minus the original
(30:47):
purchase price. So sale price minus improvements over the life
of the home, minus the original purchase price, that's going
to be your increase. And if you wanted to tithe
on it, that's what you would give on. We'll be
right back. Stay on the line. Delighted to have you
with us today on Faith and Finance Live. We're not
(31:07):
here today. Our team is away from the studio. This
is pre-recorded, so don't call in. But we've got some
great questions we lined up in advance before we go
to the phones. let me remind you, Faith, Fi and
Faith and Finance Live is listener supported. If you'd like
to be a financial partner, you can do that at Faith.
Com just click give thanks in advance. All right. Let's
head back to the phones. Arkansas is where we're going next. Hi, Eddie.
(31:30):
Go ahead.
S10 (31:31):
Hey I've got a my wife and I was married
for 40 years, and I lost her about three years ago.
And while within our marriage, she had two kids before
we married. And then we had one together. And then
we had to our house burnt, and then we had
(31:51):
to buy another house and some land. Now, since he
has passed away, I've remarried a few months ago, and
I was wondering if I pass away. Uh, will. And
then the the the house and land is still under
loan and it's in our name. Mine. And my late
wife's name is. If I pass away. Is there any way? Uh,
(32:16):
her two kids, her two previous kids, or our kid
together can boot my wife out now with me now.
Married to now? Or is that what I need to
do to get where they can't kick her out?
S2 (32:31):
Yeah. Uh, what what would be your ultimate objective there?
What is it that you and your your current wife
want to have happen when you pass away? If you
were to predecease her?
S10 (32:42):
Well, it would go to her, you know, it would
go to her. And that way it would just stay
with her until something happens to her or, you know, uh, I,
I don't want to kick her out, you know?
S2 (32:53):
No. Exactly. Right. Yeah. So basically, I would check with
an estate attorney. Uh, there's a couple of options here, uh,
where you could do what's called, uh, a life estate
with remainder to children or a traditional life estate deed.
And that would give your wife a lifetime right to
(33:14):
live in the property. And the heirs couldn't force a sale.
And then when she passes, the heirs would then, you know,
take full ownership and control of the property. Um, you know,
the other option is you could, um, you know, just
go ahead and put her name on it. And, uh,
you know, you all could own it together and then
it would be left to your full estate, um, and
(33:38):
pass according to you or and your wife's wishes, uh,
at that point. But if you're wanting this particular asset
because of your prior marriage to go to your kids
from your previous wife who passed, then that's where that
life estate could be a great option to give your
your current wife the ability to live in it for
the remainder of her life and then, uh, allow your
(34:00):
heirs to take ownership and control the property at her passing.
S10 (34:04):
Okay. Now she has three kids from a previous marriage also.
So if I let's just say if I passed and
she passed, it would go to her kids and my
one kid her her previous her, my late wife's previous
kids would have any grounds for it, would he?
S2 (34:23):
Well, it's totally up to what you all want. Um,
so I think that it needs to start with you
all having a conversation. And, you know, there's a couple
of approaches here. One approach is to say, listen, um,
you know, two become one flesh in marriage. And so
we're going to treat everything regardless of when we, you know,
when the Lord gave it to us, uh, we're going
(34:44):
to treat everything as marital property. And so we're going
to co-own everything. And that means you and or she
will get to enjoy it during your lives, regardless of
who the Lord takes home first. And then you decide
as a couple how you want that distributed. Once you
both pass away how much to heirs and maybe it
gets split evenly, maybe it doesn't, and how much to
(35:07):
to ministry. I mean, those are really the two only
two places you can go. Sometimes when it's a second marriage,
you know, we will come into this conversation and say, hey,
there are certain assets that were accumulated prior to the
second marriage, and because we have kids from a previous marriage,
we want to take some of those assets that were
accumulated before the new marriage and make sure they go directly, uh, to,
(35:32):
you know, my kids or her kids. And that can
be done as well. You all just need to talk
through that with grace and trust and openness, decide what
you want to do. And then an estate attorney can
draft the documents to make any of that happen. Uh,
you know, based on the conversation you have. Does that
make sense?
S10 (35:52):
Yes. Yeah. Yeah it does. More planning than what it
was before and everything. So. But, uh, me and her
planning on. So we ain't worried about it.
S2 (36:01):
Okay. Very good. Yeah. So I think the next step
is to visit with a godly estate attorney. Talk through
your wishes, make sure you guys are clear and on
the same page before you get there, but as long
as you are. Share your wishes. And then that attorney can,
you know, draft the legal documents to make all of that. Uh,
so that, uh, you've got all the plans in place
(36:21):
and there's no more guessing involved. Hey, thanks for your
call today. Eddie, let's go to Louisiana. Hi, Barbara. Thank
you for holding. How can I serve you today?
S11 (36:30):
Thank you. Thank you for taking my call. Yes, ma'am.
I'm soon to be 92. Wow. And I don't intend to, uh,
buy another house or a new car or anything like that.
And I'm wondering if I should put a hold on
my credit score, freeze my credit scores.
S2 (36:52):
Yes, ma'am. Well, uh, happy early 92nd birthday, Barbara. Thank you.
Thank you for calling today. Yes, ma'am. I think that, uh,
putting that freeze would make a lot of sense, because
to your point, you're not looking to make any transactions
or borrow any money anytime soon. And really, although it's minimal,
(37:13):
that's probably the only downside to the freeze is just
the hassle factor of you having to unfreeze or thaw
your credit for the purpose of seeking a loan. But
if you're not doing that, there's no reason why you
wouldn't want to freeze it. That's just going to stop
somebody in their tracks if they were to somehow come, uh,
you know, to access your personal information and then try
(37:36):
to impersonate you and open an account in your name,
they would not be able to do so with that
freeze in place. So I like that a lot. I
think that's probably your best deterrent, other than the options
that I mentioned a moment ago. And that is just
really be on your guard, no matter how convincing somebody
is that calls you or threatens you over the phone, um,
(37:58):
or send you an email that looks legitimate. Just don't
give the information through any of those means.
S11 (38:05):
Okay, I have another question.
S2 (38:06):
Yes, ma'am.
S11 (38:07):
I used a credit card that has a $3,000 limit
when I buy things that I charge over the phone,
like from Amazon. Yes. And would it be better, safer
for me to use PayPal or something like that rather
(38:27):
than use my credit card?
S2 (38:29):
No, ma'am, I don't think so, because the nice thing
about the credit card is that there are protections there.
Number one, they are very adept at identifying fraudulent activity.
You know that example I mentioned a moment ago about
the text message from the Florida SunPass in that situation,
(38:50):
as soon as that card was added to the Apple Pay,
the credit card company happened to be Wells Fargo, immediately
identified it, shut it down, and was in touch with
the the cardholder. And so you get that added protection there.
You also get the guarantees in that if somebody was
to gain access to your information and charge it, as
(39:13):
long as you identify it in a reasonable period of time, usually,
you know, within 30 to 60 days and you report it,
you are not responsible for one bit of it. And
so you have that added protection. I think, uh, on the, uh,
the credit card, uh, even more so than than the PayPal,
in my view.
S11 (39:33):
Thank you so much.
S12 (39:34):
All right. You're very welcome.
S11 (39:36):
About knowing that.
S12 (39:37):
Thank you. Very good.
S2 (39:38):
Barbara, call anytime if I can help you. Thanks for
being on the program today. Uh, let's go to Kentucky. Hi, Elijah.
How can I help.
S13 (39:47):
In on you, Rob.
S2 (39:49):
Uh, say that again, sir.
S13 (39:51):
God blessing on you.
S12 (39:52):
Rob.
S2 (39:52):
Well, thank you. I'll take that. I appreciate that, Elijah.
How can I help you today, sir?
S13 (39:58):
Uh, I'm calling on behalf of my friend. She's a
senior citizen. And she's renting an apartment. She has a
lease and she does not have a cell phone or
a computer. The landlord decided to bring internet to the
entire property, and they want to increase her rent by
(40:19):
$70 for the internet. Can they do that?
S12 (40:23):
Mhm.
S2 (40:24):
Yeah. It's a good question. Um, you know I think
the first question would just be, uh, whether or not
they can change the rules or raise the rent mid,
mid lease without the tenant's consent. Um, so in terms
of the rent increases and rule changes, typically, you know,
(40:44):
they can raise the rent at the end of the
lease term, not during an active lease. Uh, for year
long leases, at least 30 days notice is required before
the lease ends. And for month to month, uh, that
30 days is also required. But, you know, typically the
changes to the lease terms, including rules, require mutual agreement
(41:08):
from both the landlord and the tenant. So, um, you know,
I would perhaps challenge that if, in fact, you know,
she's Middle East with regard to, you know, what they're
saying in terms of an additional expense that was not
disclosed or a part of the initial lease when she
signed it?
S13 (41:26):
I see. So when leases expire, they can add the
$70 to her new lease. Even she does not have
a cell phone or an internet.
S12 (41:39):
Absolutely.
S2 (41:40):
Yeah. Because they're able to determine, you know, what they
roll into that in terms of features and utilities and expenses.
Whether or not somebody wants to take advantage of it,
they certainly can put it in as long as they
disclose it. But if it's Middle East, I would have
her push back on that and see if she can
at least delay it before she has to make a
decision on renewing. Thanks for your call, Elijah. Well, we're
(42:03):
about out of time today. Before we go, let me
remind us why we do what we do here on
this program. Every day we gather for faith and finance
live because we recognize we all have a high calling.
We're money managers for the King of kings, which means
we're to be found faithful as we manage God's resources, faithfulness,
(42:23):
obedience over a long period of time, applying the wisdom
of God's Word to every area of our lives. And
that includes our finances. So thanks for being here today.
Thanks for calling and for writing and for your emails.
We love to do what we do in serving you
to be wise stewards of God's money. Want to say
thanks to my team today Clara, Deb, Amy and Jim
(42:44):
couldn't do it without them. Faith and finance live as
a partnership between Faith Fi and Moody Radio. We'll see
you next time. God bless you. Bye bye.
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Does hearing about a true crime case always leave you scouring the internet for the truth behind the story? Dive into your next mystery with Crime Junkie. Every Monday, join your host Ashley Flowers as she unravels all the details of infamous and underreported true crime cases with her best friend Brit Prawat. From cold cases to missing persons and heroes in our community who seek justice, Crime Junkie is your destination for theories and stories you won’t hear anywhere else. Whether you're a seasoned true crime enthusiast or new to the genre, you'll find yourself on the edge of your seat awaiting a new episode every Monday. If you can never get enough true crime... Congratulations, you’ve found your people. Follow to join a community of Crime Junkies! Crime Junkie is presented by audiochuck Media Company.
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If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.