September 22, 2025 • 42 mins
Wondering if “what’s yours is mine” should include your bank account? You’re not the only one. Marriage is about becoming one—but what does that mean for your money? Should couples combine accounts or keep them separate? On the next Faith & Finance Live, Rob West explores what Scripture says about financial unity in marriage—and why shared finances reflect shared lives. Then, it’s on to your calls. That’s Faith & Finance Live—biblical wisdom for your financial decisions. That’s weekdays at 4pm Eastern/3pm Central on Moody Radio.
Faith & Finance Live is a listener supported program on Moody Radio. To join our team of supporters, click here.
To support the ministry of FaithFi, click here.
To learn more about Rob West, click here.
To learn more about Faith & Finance Live, click here.
See omnystudio.com/listener for privacy information.
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
S1 (00:08):
Wondering if what's yours is mine should include your bank account.
You're not the only one. Hi, I'm Rob West. Marriage
is about becoming one. But what does that mean for
your money? Should couples combine accounts or keep them separate?
Today we'll explore what Scripture says about financial unity in
marriage and why shared finances reflect shared lives. And then
(00:28):
it's on to your calls at 800 525 7000. That's
800 525 7000. This is faith and finance. Live. Biblical
wisdom for your financial decisions. In Mark ten seven and eight,
Jesus gives us a powerful image of marriage. He says,
therefore a man shall leave his father and mother and
(00:50):
hold fast to his wife, and the two shall become
one flesh. That phrase, one flesh, describes a union that
is physical, emotional and spiritual. But does it also extend
to the practical, such as how we handle our finances?
The Bible doesn't speak directly to separate checking accounts, but
it offers timeless wisdom about unity, trust, and stewardship within marriage.
(01:14):
You see, God designed marriage not just as a romantic partnership,
but as a shared life. That includes how we set goals,
make decisions, and yes, how we steward his resources. Joint
accounts aren't a biblical requirement. However, they do offer a
clear path toward transparency and mutual accountability. Two things Scripture
(01:35):
commands us to pursue. Now, I want to be clear
that separate accounts aren't inherently sinful. In fact, there may
be practical reasons why some couples start with them, especially
in second marriages or when dealing with past debt. But
be cautious. Separate accounts can become symbolic of separate lives.
I remember a story of a friend of mine. He
(01:56):
was a banker at the time. One day a woman
came into the bank. Visibly shaken, she had just discovered
that her husband had a secret credit card. Not just that,
but he had racked up thousands of dollars in gambling debt.
The shock on her face wasn't just about the money,
it was about the betrayal. She thought they were building
a life together. But now she realized that he had
(02:17):
been hiding something major. Sadly, that marriage began to unravel
right there in the bank lobby. My friend watched it happen.
That's why financial infidelity. Yes, that's a real term, is
so devastating. It's not just about the dollars and cents.
It's really about broken trust. God calls us to something better.
(02:37):
Ephesians 521 says, submit to one another out of reverence
for Christ. That includes how we manage money. Marriage is
about mutual care, sacrificial love, and shared purpose. And your
finances are one of the most tangible ways that plays
out day to day. So what does financial oneness look
like in real life? Well, here are a few practical
(02:58):
steps you can take first. Hold regular money dates. Set
aside time each month to discuss your finances, your budget, giving,
and both short and long term goals. These don't have
to be long or stressful. In fact, they can become
a life giving rhythm in your marriage. You'll grow in
communication and unity simply by showing up consistently. Second, build
(03:21):
a shared emergency fund. Saving 3 to 6 months of
expenses together is a powerful way to prepare for the
unexpected and demonstrate mutual trust. You're saying we're in this
together come what may? Third, use tools that foster unity.
The Faith VI app is a great place to start.
It helps you build a budget, track your spending, and
(03:42):
see your finances clearly all in one place. And because
it's built on biblical principles, it's more than a tool.
It's a discipleship resource. Julie and I use it in
our financial lives every day and you can download it
free from your app store. Remember, financial unity isn't merely
about having one account. It's about sharing a vision, building trust,
(04:04):
and stewarding God's provision as one. At the end of
the day, this conversation isn't just about bank accounts, it's
about our hearts. When we pursue oneness in our finances,
we're doing more than creating peace in our homes. We're
offering the world a glimpse of the gospel our unity
espouses becomes a testimony of Christ's unshakable bond with his body,
(04:26):
a commitment marked by grace, mutual care, and faithful provision.
So whether you have joint accounts or just now starting
the conversation, ask yourself, are we truly walking as one?
Are our financial decisions marked by trust, transparency, and a
shared vision for honoring God? As you make decisions about
join or separate accounts, keep your eyes on the bigger picture.
(04:49):
Strive for oneness not just in your finances, but in
your hearts, your goals and your walk with God. And
when you do, your marriage will reflect the beauty of
the one who gave himself up for all of us.
If you want to explore this topic further, I want
to invite you to become a faith partner for just
$35 a month or $400 a year, you'll receive exclusive benefits,
(05:10):
including our quarterly printed magazine, Faithful Steward. It's full of
biblical wisdom and practical tools to help you grow as
a faithful steward. Just go to faithfully partner back with
your questions after this. Stick around.
S2 (05:34):
The opinions offered during this program represent the personal or
professional opinions of the participants, given for informational purposes only.
Any information provided is not intended to replace advice from
a financial, medical, legal, or other professional who understands your
specific situation.
S1 (05:58):
Thanks for joining us today on Faith and Finance Live,
where we started today, by talking about money and marriage.
Let's open it up to any financial topic now with
your phone calls. If you've got something on your mind
today you'd like to talk about, we'd love to help
you think about it in light of biblical wisdom you
can call right now we've got some lines. Open 800
525 7000. Again, that's 800 525 7000. We can dive
(06:23):
into your financial issues today. Whether it's your spending plan,
your debt repayment, maybe it's investing for the future, whatever
you're thinking about. Again, 800 525 7000. Uh, experts are
now expecting two more interest rate cuts before the end
of 2025. That's following the Fed's recent quarter point reduction
(06:45):
last week. Analysts are saying the central bank is trying
to balance slowing inflation with signs of economic cooling, which
means borrowing costs could continue to ease into 2026. While
the timing isn't certain, markets are already pricing in further moves.
And here's some of what we're seeing coming down the
(07:06):
pike as, uh, as these rate cuts unfold. First of all,
as it relates to mortgages and loans. If cuts continue,
mortgage rates and auto loans could gradually become more affordable.
That's welcome relief for buyers who've been on the sidelines.
Rates ticked up, uh, so slightly, uh, last week, despite
(07:26):
the cut. And a lot of times that happens, rates
had already moved down somewhat in anticipation of those cuts.
But clearly with home affordability being so challenging, that would
be a welcome sight for, uh, borrowers. Secondly, savings accounts
and CDs, because on the flip side, savers may see
yields shrink as banks adjust downward. So if you're considering
(07:50):
a certificate of deposit, now might be a good time
to lock in a rate before those rates start down
on investments. Lower rates generally support stock prices, especially in
rate sensitive sectors. So I would just say as an investor,
two things. One is investors should be mindful of valuations
and not get swept up into short term rallies, especially
(08:12):
when it requires that you overweight in a certain category
and abandon your diversification. But two, just generally speaking, you know, historically,
rate cuts in the midst of a bull market and
a fairly strong economy means the market is moving higher,
where rate cuts don't always result in markets moving higher,
(08:33):
at least historically speaking, is when those rate cuts happen
in the midst of a recession where the fed is
trying to pull us out, oftentimes, um, you know, we
see stock prices actually fall a bit more. So at
least this move coming in this environment typically means stocks
will continue that upward trajectory. But again, let's be disciplined.
(08:57):
Let's have a well thought out investment strategy. What does
this mean for your wallet. Well debt payoff is always attractive.
Uh but planning for lower savings returns I think is essential.
So don't rely too heavily on cash for long term growth.
Just remember wise planning, not guessing. The next Fed's move
(09:17):
is truly what brings financial health. The Bible certainly affirms that,
but hopefully this helps you think about what might be
coming in light of these rate cuts. Perhaps as many
as two more this year. All right. We're ready to
dive into your questions today. Again, that number to call
800 525 7000. That's 800 525 7000. Let's begin today
(09:39):
in North Canton, Ohio. Uh, Marty, thanks for calling. Go ahead.
S3 (09:46):
Hi, Rob. Thank you. Um, I would like your opinion on, uh,
leasing versus purchasing a car. Uh, the pros and cons
of both. I'm a 75 year old woman who drives
approximately 6 to 7000 miles per year.
S1 (10:03):
Okay. Got it. Yes. Um, so great question. You know,
this comes up from time to time, especially in a
situation like yours where you're saying, you know, you're not
going to drive, uh, a whole lot. Relatively speaking, I mean,
the pro of the lease, of course, is the lower
monthly payment. If you're unless you're going to buy with cash.
We'll talk about your financial situation in a moment. Um,
(10:24):
it's of course under warranty because it's going to be
a new vehicle. It's a good, better fit, I would say,
for lower mileage drivers, which would be you, because that
avoids the excess mileage penalties and then you don't have
a long term commitment. Um, the downside is you never
own it. It's more expensive than just buying in something
(10:44):
and keeping it. Uh, you know, for a much longer
period of time until it's kind of worn through its
useful life. Um, you know, it keeps the insurance levels
high because you pay more on insurance with that newer vehicle. Um,
and then at the end, you either have to start
over with a new lease or you return the car.
Whereas I think, you know, the the obvious benefits of
(11:07):
purchasing are you own it outright. Um, you know, so
you've got a lower cost of ownership beyond those first
few years where, you know, you've just got the most depreciation.
You can keep it as long as you like, which
is very cost efficient for low mileage drivers like yourself.
I mean, you can get a lot of use out
of a single car, you know, well into the future. Um,
(11:31):
and then, you know, you have the ability to be
without a monthly payment once you get to that point,
unless you're planning to buy, uh, for cash. Um, if
you're financing, of course, you've got that higher monthly payment
with that car purchase versus the lease. So you have
to be able to absorb that. And, you know, you're
of course responsible for repairs after the warranty expires. So
(11:51):
I think big picture, um, you know, with low mileage
and potentially keeping it for many years, I would say,
you know, buying often makes more sense financially. But if
you value having a new car and low maintenance, um,
you know, and you don't have to worry about those
extra fees for the, you know, over mileage, um, you know,
(12:14):
then leasing is an option. Um, but give me your
thoughts on all that.
S3 (12:20):
Okay. Um, I was just thinking, you know, at my age,
I figure, well, hey, if I get a car that
lasts me a couple of years. Um, my current car
is nine years old. It only has 50,000 miles. So
that's what I was kind of basing that on and
thinking that, yeah, maybe lease would be a good way
to go for somebody my age.
S1 (12:41):
Yeah. Are you. Would you be in a position to
be able to buy it outright?
S3 (12:46):
Yes.
S1 (12:48):
Okay. I mean, just given how how long you keep cars,
I think you just buying it and, you know, driving it, uh,
you know, for another nine years. Uh, I mean, you're
you're the ideal person that people want to buy cars from,
because now here you've got a nine year old car
with very low mileage, which is going to be very
attractive to someone. But I think, you know, given that
(13:11):
at least historically, you've not been someone who's, you know,
needing a new car every every couple of years, uh,
you're willing to buy them and drive them for a
long time, especially given how little mileage, you know, you
put on it, you know, it's going to pay financially
for you to just go ahead and buy something outright versus, uh,
(13:33):
leasing something and then having to start that over every
three years, which is has not been your pattern to
this point. Doesn't sound like.
S3 (13:40):
Correct. Yes. Yeah. Okay. Well, that's that's good information. We
just trying to figure out what would be the best
way to go.
S1 (13:47):
Yeah, I think for you I'd just buy it and, uh,
and try to plan to drive it for another nine years,
and I think you'll, uh, you'll be in good shape.
I mean, if you take care of it, it should
last well beyond that. So you could turn around and
sell it, which I suspect you'll be able to do
with this one. Sell it and get a good bit
out of it. Just because you just don't put many, uh,
many miles on it, so that's great. Well, hey, thanks
(14:08):
for your call today. We appreciate you being on the program.
Call anytime. We'll take a quick break. When we come back,
we'll head to Indiana and then out to Illinois. And
perhaps your question, that number to call today with your
financial questions. 800 525 7000. We'll be right back. So
(14:33):
glad to have you with us today on Faith and
finance live, helping you see God as your ultimate treasure
and money as a tool to accomplish God's purposes. We're
taking your phone calls today. We have a few lines open.
If you have a financial question, go ahead and call
right now 800 525 7000. Let's head to Highland, Indiana. Hi, Kathy.
Go ahead.
S4 (14:54):
Hi. Um, this year I was blessed with a little
bit of extra income. At the end of this year,
I'll have it. And I'm not sure if I need
to use that to pay off some debt that I have. Uh,
it's personal debt, so there's no interest on it. Or if,
because I was blessed with it, that I should give
it to a Christ centered charity that would, you know,
(15:16):
spread the Lord's word.
S1 (15:18):
Yeah. Well, I love this question. And I love that
you're you're wrestling with, uh, you know, how do you
best honor the Lord with what he's entrusted to you?
Which is a good idea. Anytime we're thinking about how
to handle God's money. Um, you know, I would say,
you know, I love both of these ideas, and I
don't think one is more biblical than the other. Certainly
(15:38):
we see affirmation in Scripture. Uh, to, you know, reduce debt. Uh,
you know, we're reminded in Proverbs 22, the borrower is
slave to the lender. And so I think paying off
debt frees you from future interest payments, reduces stress, and
puts you in a position to give even more in
the future. Um, you know, as you said, though, in
(15:59):
your case, you don't have the interest payments. And so
that's great. If it's a personal loan, somebody doing interest free.
But if that's a personal relationship, I think, you know,
anytime we can get out from under that because the
relationship has changed by you being a borrower and that
person being the lender. I'd love the idea, perhaps even
more than just the financial implications from somebody who has
(16:21):
interest accruing. I think, you know, if the reason this
was given to you interest free is because there's a
personal relationship, I would say that's even more reason to
go ahead and tackle that. But I love giving. I mean,
at the same time, giving Scripture calls us to be
generous as an act of worship. And I think giving
first acknowledges that everything we have belongs to him. So again,
(16:45):
there's not a right or wrong answer here, but what
if you do both? What if you prayerfully set aside
a portion to give right away and then use the
rest to accelerate? You know, that debt payoff, which allows
you to honor God immediately acknowledge you know his provision
here and take steps toward reducing, you know, your overall
(17:05):
debt level. Perhaps, you know, getting out from under that, uh,
you know, that debtor relationship with whoever loaned that to
you and then over time, increase your capacity for even
more joyful giving in the future as you no longer
have that debt payment. But give me your thoughts on
all that.
S4 (17:24):
No. And that's exactly what I've been praying for, is,
you know, to get some kind of, uh, clarity on
that about, you know, how much, uh, to pay off
the full debt, pay off half the debt, uh, you know,
and will I have the same amount of money the
following year? So know everything that you said is things
that I've been wrestling with. And I think the answer
(17:46):
is just keep praying. And, you know, I have till
the end of the year, and hopefully we'll have an
answer by then.
S1 (17:51):
Yeah, that sounds great. What if you don't mind me asking,
what is the amount you're expecting to receive? And then
what do you owe on the debt?
S4 (17:58):
Uh, so it's I owe 10,000, uh, 1 to 1 person,
14,000 to another person. And I should have exactly that.
S1 (18:09):
24.
S4 (18:09):
At the end. Yeah, at the end of the year.
S1 (18:12):
Yeah. Got it. Yeah. I mean, so I think, uh,
you know, how has that been relationally? How have you
kind of seen, even if that person doesn't treat you
any differently, is that something that's kind of weighing on you,
that these two personal loans that you have.
S4 (18:27):
Uh, they have done nothing. But yes, it is something
that is weighing on me personally. It's never brought up.
It's never spoken about, it's never even questioned. But it
is something that. And I feel like once I can
get that slate clean, then I can focus on all
of my giving back to where I want to go.
S1 (18:46):
I love that because again, there is a change in
the relationship, whether or not these people are kind of
holding that over your head, it sounds like they're not,
which is very gracious, but whether it's spoken or unspoken,
there's a change in the relationship when you're the borrower
lender relationship. And so, you know, I think it would
be very God honoring. I don't think you'd have to
feel guilty at all by saying, listen, God has provided this.
(19:09):
I'm going to take it to get out from under
this debt, completely honor my obligation back to these two individuals.
To your point, wiping the slate clean. You owe nothing.
And now you're free to do even more giving moving forward.
And if it took 100% of it to do that,
I think that's a wonderful and very God honoring way
to use that money, even if it didn't result in
(19:32):
any immediate giving and the giving was deferred. That's just
my take on it. Again, there's not a right or
wrong answer here, but I kind of like that idea.
S4 (19:40):
Yeah, I do as well. Thank you so much for
your time. Have a great day.
S5 (19:44):
All right Kathy. God bless.
S1 (19:45):
You. Thanks for calling today. 805 two five 7000 is
the number to call. Let's head to Chicago. Michael. Go ahead.
S6 (19:54):
Hi. Thank you for taking my call. Um, yeah, I'm
in my mid 50s. Uh, I'm married, and, uh, we're
looking to move, and, uh, I wanted to do a
trust and a will. I was wondering, should I wait
before until I move, or should I go ahead and
(20:14):
do it now while I'm in Illinois? We just don't
know where we're going to go. But our time frame
is between two to 2 to 5 years on our move.
S1 (20:25):
Yeah. Yeah. And you? Do you have neither of them
at this point?
S6 (20:31):
Is neither of them correct?
S1 (20:33):
Yeah, yeah I would. I mean, I like the way
you're thinking because the benefit of waiting is you could
save on some legal costs. And there are state specific
rules like probate shortcuts and homestead protections or state estate taxes,
you know, things like that, that might make a difference.
But I would say if the move, uh, you know,
(20:53):
is more than just a few months away, I'd go
ahead and set it up, because you just don't want
to take a chance that you don't have these things
spelled out, um, for your protection and to really honor
your wishes as to, you know, how these are handled
after your death. And none of us know the day
or the hour the Lord will call us home. Now,
if that move was imminent, as in, like, weeks, you know,
(21:17):
I would say maybe you go ahead and wait and
set it up in the new state. But, uh, given
that it could be a year or more. I would
go ahead and do it now and then amend it
when you get there.
S6 (21:28):
Thank you so much.
S1 (21:29):
All right, Michael, thanks for your call today. 800 525
7000 is the number to call. Bob Dole coming up
in our final segment, plus plenty more of your phone
calls today here on faith and finance. Live biblical wisdom
for your financial decisions. I'm Rob West. So glad you're
along with us today. Don't go anywhere. A lot more
to come just around the corner. Glad you're with us
(22:03):
today on Faith in Finance Live. We're taking your calls
and questions today on anything financial. Let's head right back
to the phones. Miami, Florida. Leslie. Go ahead.
S4 (22:13):
Okay.
S7 (22:14):
Can you hear me?
S1 (22:15):
I sure can. Yes, sir.
S7 (22:17):
Okay, listen, I drive. Uh, thank you for taking my call.
S8 (22:21):
First of all.
S7 (22:22):
I drive a tractor trailer for the post office, and
my employer has a thrift saving program.
S8 (22:31):
Yes.
S7 (22:32):
And I have $50,000 in debt. But when the terrorists
were first implicated, it began to drop. A lot of
people lost money. So I took it out and put
it in cash where it's not being invested anymore. And
I was wondering, is it a good time to reinvest
it into Thrift Savings Plan?
S1 (22:51):
Yes. So tell me a little bit more about that.
What were you invested in inside the Thrift Savings Plan
that that declined in value so much?
S8 (23:01):
Oh.
S7 (23:01):
Okay.
S8 (23:02):
That, you know, I'm.
S7 (23:04):
Not good at investing thing, but I invested 100% into
the plan that they had for me. And I was wondering,
you know, should I put it back or just wait?
S8 (23:16):
Yeah. Okay. I wasn't sure what the plan was.
S1 (23:19):
Yeah. And did you leave it in the Thrift Savings
and just move it to, you know, into, like, the, uh,
the G fund?
S7 (23:26):
Yes. That's it exactly.
S1 (23:29):
Okay. Yeah. Uh, I mean, the the challenge here is that,
you know, trying to time the market just really doesn't
work well. And I realize that's in hindsight, but I'm
just saying, moving forward, the key principle here is that
getting out when it falls and back in when it
rises almost always hurts, returns in the long run. You know,
(23:50):
the TSP is really designed for long term growth, not
short term trading. And so really what you need to
do is decide on a long term allocation, uh, you know,
that matches your age, uh, your goals, your risk tolerance. Uh,
so the, the mix generally of stocks and bonds, you know,
(24:11):
is what we're talking about there. Um, and then, you know,
beyond that, you want to put money into that allocation,
both the existing funds and new funds as you make
contributions moving forward. Um, and then you want to use
dollar cost averaging, which is basically by staying invested, even
when the market's down, it provides you a wonderful opportunity
(24:35):
to buy in at lower prices. Now, the great thing
about the TSP plan, Leslie, is that it's fairly simple.
I mean, they've got like five core funds other than
what are called their lifecycle funds. So they've got the G,
the F, the C, the S and the I. So
the G is probably where you're at now, which is
like the government securities fund. So very low risk but
(24:58):
not a whole lot of yield. Um, then you've got
the F fund, which is the fixed income fund that
tracks the bond index. Then you've got the C fund,
which is kind of like the S&P 500. You've got
the S fund which is the small caps. And then
the I which is the international. So what is your age, Leslie?
S7 (25:18):
I'm 62 years old. I'm still working, thank God.
S1 (25:21):
Okay. Yeah. So that's great. So, I mean, at your age,
I'd probably say you want maybe a 5050 portfolio, 50%
in the fixed income, which is the F fund, and
then the other 50%, I would put like two thirds
of it in the C fund. And then maybe the
balance of it in the s and the I. Um,
(25:43):
but the idea is you want about a 5050 split. Uh,
now if the market goes down, is this going to
go down? Yes. But the long term trends, you know,
are going to be up. And even at 62, you know,
you need to be thinking about this money lasting three
decades or more. And so what you don't want to
do is, you know, get jump in and out of
(26:05):
these funds. You want to pick that right allocation for
you and then get the money invested and then just
continue to contribute to it. And the only time you'd
make a change is, you know, when you know, as
you get older. Now, the other option is, you know,
you could use one of the life cycle funds, and
that's called a target date fund. And you, you make
(26:26):
that target based on, uh, your retirement date. So let's
say you were planning on working for another ten years. Okay.
You might pick the 2045 Life Cycle fund. And that's
automatically going to determine the mix between stocks and bonds
for you. But in either case, you know I wouldn't
be jumping in and jumping out. I would get it
(26:48):
invested and just let it grow. Recognizing there are going
to be ups and downs along the way. Does that
make sense?
S7 (26:55):
Yes, it makes a lot of sense.
S8 (26:57):
Okay.
S1 (26:58):
So I would say either the 2045 Life Cycle Fund
or take it about 50, 50, 50 in the F
and then the other 50 between the three stock funds,
I think would be probably the best way to go. Hey, Leslie,
thanks for your call today. We appreciate you being on
the program. Let's go to Georgia. Hi, Nadine. How can
(27:19):
I help you?
S9 (27:21):
Hi. How are you?
S1 (27:22):
Great. Thank you.
S9 (27:23):
Thanks for taking my call. Of course. I have in
a high yield savings account, $80,000. I have two cars,
but I'm trying to pay off stuff. Especially the car.
One car? I've gotten it down to call it $4,400.
I was trying to figure out if I need to
take the money from the $80,000 and just pay off
(27:47):
the car again. I've paid ahead in the car payment
so much where my next car payment is due in 2028,
right about May 2028, and my paying $0.57 or so
interest per day if I leave it there. And every
month I put like $5,600 for that car payment. So
(28:08):
I'll be my aim is to be finished with that
this year.
S1 (28:12):
Okay.
S9 (28:13):
So would you say I need to take the money
from the the $80,000 or. And I'm also trying to
figure out how can I make this $80,000 go a
little bit further for me. And I don't like taking
a lot of risk. I can tell you that much.
But I know I have to take some risk, but
not much because that's all I have.
S8 (28:32):
Yes, yes.
S9 (28:33):
That's all I have.
S1 (28:35):
Great. Well, I love that you are being really diligent
and you're getting you're very focused on getting out of debt.
That's great. You've accumulated a nice nest egg. That's great. Um,
the only question would just be to your final point
about how you get this working for you. Um, what
do you do for a living? And do you have
access to a retirement plan? Oh, unfortunately, I'm losing you there.
(29:00):
Are you back with me? Oh, there you are. Yeah.
No problem.
S8 (29:04):
Go ahead.
S9 (29:05):
I am on a 401 K, 401 k. Um, I'm
a manager. Um, for one, I have around $70,000.
S8 (29:15):
Okay.
S9 (29:15):
Can you hear.
S8 (29:16):
Me?
S1 (29:16):
I sure can, yes.
S9 (29:18):
Yes, $70,000. And it's so far, I continue to contribute
in 15% of my pay to that. Um, yeah.
S1 (29:28):
Okay, great. And then. Yeah. No, that's that's excellent. And
what is your age?
S9 (29:33):
I am 54. In the next couple of days on ten, ten.
S1 (29:37):
Okay, great. Well, happy early birthday to you. That's amazing. Um, well,
there is a catch up provision. Um, I love the 15%,
but if you feel like you're a little behind, and
I would say, you know, in your mid 50s having 70,000,
we probably do need, you know, to prioritize getting as
much into that as you can because you really want
(29:57):
it in that tax deferred environment. And the nice thing
is that once you're over 50, you can put in
in your contribution, not your employer match, but just the
employee contribution. 30,500. So I would max that out right
now and try to get as much of that 80,000,
shifting it from the taxable environment over to the tax
(30:19):
deferred environment, which is really where we want it for
long term. As far as that 80,000 goes, I'd set
aside six months expenses and just leave it in savings.
And if you're just going to continue to pay the
car out of current cash flow, I think we can
use the rest to boost that. Those retirement savings, even
if it brought your pay check down to low and
(30:40):
you had to draw from it. Think about it as
shifting it from taxable to tax deferred. Stay on the line.
We'll talk a bit more. We'll be right back. Well,
it just seems like every few days the market's bumping
up against new all time highs. And another record close
(31:02):
today with help from Nvidia. The the big chip maker,
Bob Dole is here to weigh in on the markets.
And Bob, you know, since we spoke last week, obviously
we had that, uh, interest rate, the fed funds rate cut. Uh,
we also had the commentary surrounding it. So just give
us your take on everything that happened last week.
S10 (31:21):
Well, the last week was the first in quite some time. Uh,
and forecast is, uh, more to come. And the fed
sort of hinted at that. I don't think it's going
to be long string that the futures market between here
and the end of next year is suggesting five more cuts.
I think it will be half that, Rob. Uh, which
could be disappointing if we actually cut five more times
(31:43):
than the next, um, 15 months. That probably means the
economy is really slow and we'll have earnings problems and
the market won't like that. But in the meantime the
fed cutting rates earnings doing fine. Stocks tend to go up.
S1 (31:56):
Yeah there's no question about it. And um you know
as we look at the economy Bob, um, you know
apart from interest rates and the strong earnings seasons that we,
that we just kind of went through. What is your
overall take on where we find ourselves?
S10 (32:12):
Uh, economy slowing. Um, now, we got a good number
in retail sales last week. But on the other hand,
we got information the University of Michigan consumer sentiment index,
it dropped. People are expecting conditions now in the future
to weaken. They're expecting more inflation. And this overdependence in
(32:34):
my view on high income Americans uh, is also expected
by folks. There aren't enough high American, high income Americans
to carry the whole load as low income workers are
curbing their spending. Rob.
S1 (32:49):
Yeah, talk about that for a moment. I know that
was a note in your deliberations this week about the,
you know, the approach of those two groups specifically as
it relates to consumer activity.
S10 (33:00):
Yeah. So high income Americans are spending money. Why? Because
the wealth effect from higher home prices and rising stock
portfolios is causing them to feel good about things. The
so-called wealth effect. Low income workers. They had a lot
of money through the pandemic and post that they've spent it,
and so they're in the process of curbing their spending.
S1 (33:23):
Yeah, Bob, as we look at just the breadth of
these gains, obviously, you know, we had a new Russell
2000 high, which was a sign that perhaps this isn't
just highly concentrated toward those mega cap companies, but what's
your overall assessment of just the breadth of this rally?
S10 (33:42):
Mixed. Rob. Um, one of the statistics that people look
at in the short term is what percentage of stocks
are selling above their 50 day moving average? When that's
kind of 70 and 80%, things are in gear and
people should feel good. It's 58% today. So it's not horrible,
but it's saying the breadth isn't good. I look at
my screen today. We actually outperform the averages today, but
(34:05):
I have more red on my screen than green, meaning
the average stock didn't do all that well.
S1 (34:10):
Yeah. Yeah. Interesting. Bob, what about, uh, mortgage rates? You know,
I think some people were surprised that, you know, we
actually ticked up last week. Perhaps that was just, you know,
that we had already seen the pullback in anticipation of
the rate cut. But where do you think mortgage rates
are headed over the next, let's say year?
S10 (34:29):
Probably flattish, maybe down a bit. The problem is, Rob,
is short term interest rates come down, i.e. the fed
lowers rates. That gives people concern about inflation which is
ticking higher. And that means the the longer end of
the Treasury yield curve to include mortgages probably doesn't come
(34:50):
down a whole lot in yield.
S1 (34:51):
Yeah. Interesting. All right. Bob. Well, as always, we appreciate
your time, sir.
S10 (34:56):
Have a great week.
S8 (34:56):
Thank you.
S1 (34:57):
That's Bob Dole, he's CEO and CIO at Crossmark Global Investments.
You can learn more at crossmark Global.com. All right, let's
head back to the phones here. We'll get to as
many calls as we can before we round out the
broadcast today down to Florida. Hi, Valerie. Go ahead.
S11 (35:14):
I was calling because I'm trying to figure out if
me and my husband are both self-employed and we need
to start saving for retirement kind of late in the game, but, um,
I was looking online at some different options, and it
looked like, you know, the Roth IRA is a traditional
way to go. But then I saw something come up
with an Sep IRA. Yeah. Can you let me know
(35:35):
what you think is better for us?
S1 (35:37):
Yeah, I love that. And I'd actually perhaps look at
doing both. I mean, the benefit of the Sep IRA
is that, you know, for those who have a small business, um,
you know, you have the ability to put away quite
a bit more of your income, uh, versus the Roth.
I love the Roth. And I think you should start
(35:58):
with the wrath, because that tax free growth is just amazing. Um,
but you're going to get capped out at either 7000
or 8000 a year per person if you're 50 and older. Um,
with the Sep, you can go up to 25% of
your net self-employment income. Um, and it maxes out at
(36:19):
not 8000 a year, but 69,000 a year. Uh, that
was actually last year. I think it's up to 76,000
this year. Um, now it acts like a traditional IRA.
So you get the tax deduction now, and then you
get the tax deferred growth. But for high earners wanting
to reduce taxable income and get money into a retirement
(36:41):
plan when you don't have access to one. Otherwise, as
somebody who's self-employed, that gives you quite a bit more
in the way of the, you know, contribution limit so
that you can shift income, you know, away from paying
tax on it now and get it into that tax
deferred growth environment. And so I like the idea, you know,
(37:01):
of you using these two great tools, uh, together, uh,
you know, to make sure you've got what you need
to working for you for the future.
S11 (37:12):
Okay. All right. Well, thank you. I appreciate your feedback.
S1 (37:15):
All right. Happy to do it. Thanks for your call today.
God bless you. 800 525 7000. Let's go. Uh, we'll
we'll stay in Florida. Joe. Go right ahead. Yes.
S8 (37:24):
I have.
S12 (37:25):
Uh, mother in law, that is, we've been caring for
for 20 years, but she's had to go into assisted living,
and they're telling me that, uh, she has $50,000 in
the bank, and that has to be transferred to my
wife's name because she's going. She's income does not support
the nursing home. They're going to have to go through Medicaid.
(37:49):
And if they transfer that money to my wife, Life.
Is she going to pay income tax on it?
S1 (37:58):
Well, it's a good question. Who is it that's actually
telling you to do this?
S12 (38:02):
The nursing home that's filling out the applications for the. Medicare.
S8 (38:12):
Medicaid?
S1 (38:13):
Yeah, I wouldn't do that without talking to an elder
care attorney and really getting professional guidance. I mean, the
reason this is probably being suggested is families are often
told to move assets out of a senior's name to
qualify for Medicaid coverage. Um, for that care. But first
of all, Medicaid has strict rules. They have what's called
(38:34):
a five year lookback period where any transfers or gifts,
which is what this would be. It'd be a gift
and it would not be taxable. Um, but any transfers
or gifts within five years of applying can cause you
penalties and delay benefits, and make her ineligible for care
coverage for months or even years because of the improper transfer.
(38:58):
And so you know that that is not something you
want to do. Not to mention just the the ethical
requirements or the ethical issues surrounding it. Um, if you're
wanting to do Medicaid planning, you might want to get
with an elder law attorney, somebody who specializes in this,
and they can advise you on an appropriate way to
spend down assets in approved ways, like for medical expenses and,
(39:22):
you know, home repairs and pre-paid funerals, or use a
trust or other planning tools to do this appropriately. But
just regardless of the fact that whether or not it
would be taxable to your wife, I would say, you know,
making that quote unquote gift just to get it out
of her name to allow her to qualify for Medicaid.
(39:42):
I would view as being unethical and also could result
in some pretty stiff penalties from Medicaid.
S12 (39:50):
Okay. All right. Well, I appreciate that advice. And I
will try to find one of the attorneys here, elder
law attorney and and get some answers. Thank you.
S1 (40:01):
Yeah. That's right. You're welcome. And it isn't. It's an
elder law. Attorney is the term. And if you don't
know one, you could do two things. One is call
your church, Joe and just say, you know, are there
any elder law attorneys here in the church? I need
to know about that? I'm reaching out to one second
is you could reach out to a certified Kingdom advisor
there in Florida, and they all have state attorneys that
they work with and could make a referral to a
(40:23):
godly elder law attorney. Just go to our website faith.
Com that's faith.com. Click find a professional and any one
of those certified Kingdom advisors could assist you with a referral.
We appreciate your call today. Um, unfortunately, we are out
of time here in just a moment. Terry, I don't
want to have to rush you. So let's see if
(40:43):
we can get you on the program tomorrow, and we'll
try to get you scheduled for that broadcast. Terry, thank
you for calling. Today, folks, as we round out the
broadcast today, let me just mention we are still on
our way toward our goal with our friends at Buckner.
Shoes for orphan souls. Um, here's our challenge this month.
(41:06):
The opportunity that we have. We've partnered with Buckner during
the back to school month of September to put shoes
not only on our kids and the kids that we
have under our care here in the US. But specifically,
these 1000 shoes are for children that desperately need shoes
in some part of the world where it's just not
(41:26):
a luxury item or a lifestyle thing. I mean, this
is the key to them protecting against food borne illness,
being able to get to school because they don't have
a pair of shoes. Obviously demonstrating their worth and God's
love and just the extension of this gift, but then
also the opportunity to share Jesus with them through the
shoe distribution. Every $15 given will pay for a pair,
(41:51):
a new pair of shoes, a pair of socks and
the cost to transport these shoes to the shoe distribution
somewhere in the world. We've got about 600 of our
1000 pairs of shoes already underwritten, and we'd love for
you to help us reach that full $1,000 1000 shoe goal.
(42:11):
We've got eight days to do it. The website is
give shoes today. That's give shoes today. Your faith. Fi
and Buckner shoes for orphan souls trying to impact 1000 children.
You can help us get there. Give shoes today. Well,
big thanks to my team today. Have an amazing group
of men and women that serve us each day, including
(42:33):
Omar and Tahira and Jim and our call screeners. Faith
and Finance Lives, a partnership between Moody Radio and Faith. Fi.
Have a wonderful day. Come back and join us tomorrow.
We'll see you then. Bye bye.
Wondering if what's yours is mine should include your bank account.
You're not the only one. Hi, I'm Rob West. Marriage
is about becoming one. But what does that mean for
your money? Should couples combine accounts or keep them separate?
Today we'll explore what Scripture says about financial unity in
marriage and why shared finances reflect shared lives. And then
(00:28):
it's on to your calls at 800 525 7000. That's
800 525 7000. This is faith and finance. Live. Biblical
wisdom for your financial decisions. In Mark ten seven and eight,
Jesus gives us a powerful image of marriage. He says,
therefore a man shall leave his father and mother and
(00:50):
hold fast to his wife, and the two shall become
one flesh. That phrase, one flesh, describes a union that
is physical, emotional and spiritual. But does it also extend
to the practical, such as how we handle our finances?
The Bible doesn't speak directly to separate checking accounts, but
it offers timeless wisdom about unity, trust, and stewardship within marriage.
(01:14):
You see, God designed marriage not just as a romantic partnership,
but as a shared life. That includes how we set goals,
make decisions, and yes, how we steward his resources. Joint
accounts aren't a biblical requirement. However, they do offer a
clear path toward transparency and mutual accountability. Two things Scripture
(01:35):
commands us to pursue. Now, I want to be clear
that separate accounts aren't inherently sinful. In fact, there may
be practical reasons why some couples start with them, especially
in second marriages or when dealing with past debt. But
be cautious. Separate accounts can become symbolic of separate lives.
I remember a story of a friend of mine. He
(01:56):
was a banker at the time. One day a woman
came into the bank. Visibly shaken, she had just discovered
that her husband had a secret credit card. Not just that,
but he had racked up thousands of dollars in gambling debt.
The shock on her face wasn't just about the money,
it was about the betrayal. She thought they were building
a life together. But now she realized that he had
(02:17):
been hiding something major. Sadly, that marriage began to unravel
right there in the bank lobby. My friend watched it happen.
That's why financial infidelity. Yes, that's a real term, is
so devastating. It's not just about the dollars and cents.
It's really about broken trust. God calls us to something better.
(02:37):
Ephesians 521 says, submit to one another out of reverence
for Christ. That includes how we manage money. Marriage is
about mutual care, sacrificial love, and shared purpose. And your
finances are one of the most tangible ways that plays
out day to day. So what does financial oneness look
like in real life? Well, here are a few practical
(02:58):
steps you can take first. Hold regular money dates. Set
aside time each month to discuss your finances, your budget, giving,
and both short and long term goals. These don't have
to be long or stressful. In fact, they can become
a life giving rhythm in your marriage. You'll grow in
communication and unity simply by showing up consistently. Second, build
(03:21):
a shared emergency fund. Saving 3 to 6 months of
expenses together is a powerful way to prepare for the
unexpected and demonstrate mutual trust. You're saying we're in this
together come what may? Third, use tools that foster unity.
The Faith VI app is a great place to start.
It helps you build a budget, track your spending, and
(03:42):
see your finances clearly all in one place. And because
it's built on biblical principles, it's more than a tool.
It's a discipleship resource. Julie and I use it in
our financial lives every day and you can download it
free from your app store. Remember, financial unity isn't merely
about having one account. It's about sharing a vision, building trust,
(04:04):
and stewarding God's provision as one. At the end of
the day, this conversation isn't just about bank accounts, it's
about our hearts. When we pursue oneness in our finances,
we're doing more than creating peace in our homes. We're
offering the world a glimpse of the gospel our unity
espouses becomes a testimony of Christ's unshakable bond with his body,
(04:26):
a commitment marked by grace, mutual care, and faithful provision.
So whether you have joint accounts or just now starting
the conversation, ask yourself, are we truly walking as one?
Are our financial decisions marked by trust, transparency, and a
shared vision for honoring God? As you make decisions about
join or separate accounts, keep your eyes on the bigger picture.
(04:49):
Strive for oneness not just in your finances, but in
your hearts, your goals and your walk with God. And
when you do, your marriage will reflect the beauty of
the one who gave himself up for all of us.
If you want to explore this topic further, I want
to invite you to become a faith partner for just
$35 a month or $400 a year, you'll receive exclusive benefits,
(05:10):
including our quarterly printed magazine, Faithful Steward. It's full of
biblical wisdom and practical tools to help you grow as
a faithful steward. Just go to faithfully partner back with
your questions after this. Stick around.
S2 (05:34):
The opinions offered during this program represent the personal or
professional opinions of the participants, given for informational purposes only.
Any information provided is not intended to replace advice from
a financial, medical, legal, or other professional who understands your
specific situation.
S1 (05:58):
Thanks for joining us today on Faith and Finance Live,
where we started today, by talking about money and marriage.
Let's open it up to any financial topic now with
your phone calls. If you've got something on your mind
today you'd like to talk about, we'd love to help
you think about it in light of biblical wisdom you
can call right now we've got some lines. Open 800
525 7000. Again, that's 800 525 7000. We can dive
(06:23):
into your financial issues today. Whether it's your spending plan,
your debt repayment, maybe it's investing for the future, whatever
you're thinking about. Again, 800 525 7000. Uh, experts are
now expecting two more interest rate cuts before the end
of 2025. That's following the Fed's recent quarter point reduction
(06:45):
last week. Analysts are saying the central bank is trying
to balance slowing inflation with signs of economic cooling, which
means borrowing costs could continue to ease into 2026. While
the timing isn't certain, markets are already pricing in further moves.
And here's some of what we're seeing coming down the
(07:06):
pike as, uh, as these rate cuts unfold. First of all,
as it relates to mortgages and loans. If cuts continue,
mortgage rates and auto loans could gradually become more affordable.
That's welcome relief for buyers who've been on the sidelines.
Rates ticked up, uh, so slightly, uh, last week, despite
(07:26):
the cut. And a lot of times that happens, rates
had already moved down somewhat in anticipation of those cuts.
But clearly with home affordability being so challenging, that would
be a welcome sight for, uh, borrowers. Secondly, savings accounts
and CDs, because on the flip side, savers may see
yields shrink as banks adjust downward. So if you're considering
(07:50):
a certificate of deposit, now might be a good time
to lock in a rate before those rates start down
on investments. Lower rates generally support stock prices, especially in
rate sensitive sectors. So I would just say as an investor,
two things. One is investors should be mindful of valuations
and not get swept up into short term rallies, especially
(08:12):
when it requires that you overweight in a certain category
and abandon your diversification. But two, just generally speaking, you know, historically,
rate cuts in the midst of a bull market and
a fairly strong economy means the market is moving higher,
where rate cuts don't always result in markets moving higher,
(08:33):
at least historically speaking, is when those rate cuts happen
in the midst of a recession where the fed is
trying to pull us out, oftentimes, um, you know, we
see stock prices actually fall a bit more. So at
least this move coming in this environment typically means stocks
will continue that upward trajectory. But again, let's be disciplined.
(08:57):
Let's have a well thought out investment strategy. What does
this mean for your wallet. Well debt payoff is always attractive.
Uh but planning for lower savings returns I think is essential.
So don't rely too heavily on cash for long term growth.
Just remember wise planning, not guessing. The next Fed's move
(09:17):
is truly what brings financial health. The Bible certainly affirms that,
but hopefully this helps you think about what might be
coming in light of these rate cuts. Perhaps as many
as two more this year. All right. We're ready to
dive into your questions today. Again, that number to call
800 525 7000. That's 800 525 7000. Let's begin today
(09:39):
in North Canton, Ohio. Uh, Marty, thanks for calling. Go ahead.
S3 (09:46):
Hi, Rob. Thank you. Um, I would like your opinion on, uh,
leasing versus purchasing a car. Uh, the pros and cons
of both. I'm a 75 year old woman who drives
approximately 6 to 7000 miles per year.
S1 (10:03):
Okay. Got it. Yes. Um, so great question. You know,
this comes up from time to time, especially in a
situation like yours where you're saying, you know, you're not
going to drive, uh, a whole lot. Relatively speaking, I mean,
the pro of the lease, of course, is the lower
monthly payment. If you're unless you're going to buy with cash.
We'll talk about your financial situation in a moment. Um,
(10:24):
it's of course under warranty because it's going to be
a new vehicle. It's a good, better fit, I would say,
for lower mileage drivers, which would be you, because that
avoids the excess mileage penalties and then you don't have
a long term commitment. Um, the downside is you never
own it. It's more expensive than just buying in something
(10:44):
and keeping it. Uh, you know, for a much longer
period of time until it's kind of worn through its
useful life. Um, you know, it keeps the insurance levels
high because you pay more on insurance with that newer vehicle. Um,
and then at the end, you either have to start
over with a new lease or you return the car.
Whereas I think, you know, the the obvious benefits of
(11:07):
purchasing are you own it outright. Um, you know, so
you've got a lower cost of ownership beyond those first
few years where, you know, you've just got the most depreciation.
You can keep it as long as you like, which
is very cost efficient for low mileage drivers like yourself.
I mean, you can get a lot of use out
of a single car, you know, well into the future. Um,
(11:31):
and then, you know, you have the ability to be
without a monthly payment once you get to that point,
unless you're planning to buy, uh, for cash. Um, if
you're financing, of course, you've got that higher monthly payment
with that car purchase versus the lease. So you have
to be able to absorb that. And, you know, you're
of course responsible for repairs after the warranty expires. So
(11:51):
I think big picture, um, you know, with low mileage
and potentially keeping it for many years, I would say,
you know, buying often makes more sense financially. But if
you value having a new car and low maintenance, um,
you know, and you don't have to worry about those
extra fees for the, you know, over mileage, um, you know,
(12:14):
then leasing is an option. Um, but give me your
thoughts on all that.
S3 (12:20):
Okay. Um, I was just thinking, you know, at my age,
I figure, well, hey, if I get a car that
lasts me a couple of years. Um, my current car
is nine years old. It only has 50,000 miles. So
that's what I was kind of basing that on and
thinking that, yeah, maybe lease would be a good way
to go for somebody my age.
S1 (12:41):
Yeah. Are you. Would you be in a position to
be able to buy it outright?
S3 (12:46):
Yes.
S1 (12:48):
Okay. I mean, just given how how long you keep cars,
I think you just buying it and, you know, driving it, uh,
you know, for another nine years. Uh, I mean, you're
you're the ideal person that people want to buy cars from,
because now here you've got a nine year old car
with very low mileage, which is going to be very
attractive to someone. But I think, you know, given that
(13:11):
at least historically, you've not been someone who's, you know,
needing a new car every every couple of years, uh,
you're willing to buy them and drive them for a
long time, especially given how little mileage, you know, you
put on it, you know, it's going to pay financially
for you to just go ahead and buy something outright versus, uh,
(13:33):
leasing something and then having to start that over every
three years, which is has not been your pattern to
this point. Doesn't sound like.
S3 (13:40):
Correct. Yes. Yeah. Okay. Well, that's that's good information. We
just trying to figure out what would be the best
way to go.
S1 (13:47):
Yeah, I think for you I'd just buy it and, uh,
and try to plan to drive it for another nine years,
and I think you'll, uh, you'll be in good shape.
I mean, if you take care of it, it should
last well beyond that. So you could turn around and
sell it, which I suspect you'll be able to do
with this one. Sell it and get a good bit
out of it. Just because you just don't put many, uh,
many miles on it, so that's great. Well, hey, thanks
(14:08):
for your call today. We appreciate you being on the program.
Call anytime. We'll take a quick break. When we come back,
we'll head to Indiana and then out to Illinois. And
perhaps your question, that number to call today with your
financial questions. 800 525 7000. We'll be right back. So
(14:33):
glad to have you with us today on Faith and
finance live, helping you see God as your ultimate treasure
and money as a tool to accomplish God's purposes. We're
taking your phone calls today. We have a few lines open.
If you have a financial question, go ahead and call
right now 800 525 7000. Let's head to Highland, Indiana. Hi, Kathy.
Go ahead.
S4 (14:54):
Hi. Um, this year I was blessed with a little
bit of extra income. At the end of this year,
I'll have it. And I'm not sure if I need
to use that to pay off some debt that I have. Uh,
it's personal debt, so there's no interest on it. Or if,
because I was blessed with it, that I should give
it to a Christ centered charity that would, you know,
(15:16):
spread the Lord's word.
S1 (15:18):
Yeah. Well, I love this question. And I love that
you're you're wrestling with, uh, you know, how do you
best honor the Lord with what he's entrusted to you?
Which is a good idea. Anytime we're thinking about how
to handle God's money. Um, you know, I would say,
you know, I love both of these ideas, and I
don't think one is more biblical than the other. Certainly
(15:38):
we see affirmation in Scripture. Uh, to, you know, reduce debt. Uh,
you know, we're reminded in Proverbs 22, the borrower is
slave to the lender. And so I think paying off
debt frees you from future interest payments, reduces stress, and
puts you in a position to give even more in
the future. Um, you know, as you said, though, in
(15:59):
your case, you don't have the interest payments. And so
that's great. If it's a personal loan, somebody doing interest free.
But if that's a personal relationship, I think, you know,
anytime we can get out from under that because the
relationship has changed by you being a borrower and that
person being the lender. I'd love the idea, perhaps even
more than just the financial implications from somebody who has
(16:21):
interest accruing. I think, you know, if the reason this
was given to you interest free is because there's a
personal relationship, I would say that's even more reason to
go ahead and tackle that. But I love giving. I mean,
at the same time, giving Scripture calls us to be
generous as an act of worship. And I think giving
first acknowledges that everything we have belongs to him. So again,
(16:45):
there's not a right or wrong answer here, but what
if you do both? What if you prayerfully set aside
a portion to give right away and then use the
rest to accelerate? You know, that debt payoff, which allows
you to honor God immediately acknowledge you know his provision
here and take steps toward reducing, you know, your overall
(17:05):
debt level. Perhaps, you know, getting out from under that, uh,
you know, that debtor relationship with whoever loaned that to
you and then over time, increase your capacity for even
more joyful giving in the future as you no longer
have that debt payment. But give me your thoughts on
all that.
S4 (17:24):
No. And that's exactly what I've been praying for, is,
you know, to get some kind of, uh, clarity on
that about, you know, how much, uh, to pay off
the full debt, pay off half the debt, uh, you know,
and will I have the same amount of money the
following year? So know everything that you said is things
that I've been wrestling with. And I think the answer
(17:46):
is just keep praying. And, you know, I have till
the end of the year, and hopefully we'll have an
answer by then.
S1 (17:51):
Yeah, that sounds great. What if you don't mind me asking,
what is the amount you're expecting to receive? And then
what do you owe on the debt?
S4 (17:58):
Uh, so it's I owe 10,000, uh, 1 to 1 person,
14,000 to another person. And I should have exactly that.
S1 (18:09):
24.
S4 (18:09):
At the end. Yeah, at the end of the year.
S1 (18:12):
Yeah. Got it. Yeah. I mean, so I think, uh,
you know, how has that been relationally? How have you
kind of seen, even if that person doesn't treat you
any differently, is that something that's kind of weighing on you,
that these two personal loans that you have.
S4 (18:27):
Uh, they have done nothing. But yes, it is something
that is weighing on me personally. It's never brought up.
It's never spoken about, it's never even questioned. But it
is something that. And I feel like once I can
get that slate clean, then I can focus on all
of my giving back to where I want to go.
S1 (18:46):
I love that because again, there is a change in
the relationship, whether or not these people are kind of
holding that over your head, it sounds like they're not,
which is very gracious, but whether it's spoken or unspoken,
there's a change in the relationship when you're the borrower
lender relationship. And so, you know, I think it would
be very God honoring. I don't think you'd have to
feel guilty at all by saying, listen, God has provided this.
(19:09):
I'm going to take it to get out from under
this debt, completely honor my obligation back to these two individuals.
To your point, wiping the slate clean. You owe nothing.
And now you're free to do even more giving moving forward.
And if it took 100% of it to do that,
I think that's a wonderful and very God honoring way
to use that money, even if it didn't result in
(19:32):
any immediate giving and the giving was deferred. That's just
my take on it. Again, there's not a right or
wrong answer here, but I kind of like that idea.
S4 (19:40):
Yeah, I do as well. Thank you so much for
your time. Have a great day.
S5 (19:44):
All right Kathy. God bless.
S1 (19:45):
You. Thanks for calling today. 805 two five 7000 is
the number to call. Let's head to Chicago. Michael. Go ahead.
S6 (19:54):
Hi. Thank you for taking my call. Um, yeah, I'm
in my mid 50s. Uh, I'm married, and, uh, we're
looking to move, and, uh, I wanted to do a
trust and a will. I was wondering, should I wait
before until I move, or should I go ahead and
(20:14):
do it now while I'm in Illinois? We just don't
know where we're going to go. But our time frame
is between two to 2 to 5 years on our move.
S1 (20:25):
Yeah. Yeah. And you? Do you have neither of them
at this point?
S6 (20:31):
Is neither of them correct?
S1 (20:33):
Yeah, yeah I would. I mean, I like the way
you're thinking because the benefit of waiting is you could
save on some legal costs. And there are state specific
rules like probate shortcuts and homestead protections or state estate taxes,
you know, things like that, that might make a difference.
But I would say if the move, uh, you know,
(20:53):
is more than just a few months away, I'd go
ahead and set it up, because you just don't want
to take a chance that you don't have these things
spelled out, um, for your protection and to really honor
your wishes as to, you know, how these are handled
after your death. And none of us know the day
or the hour the Lord will call us home. Now,
if that move was imminent, as in, like, weeks, you know,
(21:17):
I would say maybe you go ahead and wait and
set it up in the new state. But, uh, given
that it could be a year or more. I would
go ahead and do it now and then amend it
when you get there.
S6 (21:28):
Thank you so much.
S1 (21:29):
All right, Michael, thanks for your call today. 800 525
7000 is the number to call. Bob Dole coming up
in our final segment, plus plenty more of your phone
calls today here on faith and finance. Live biblical wisdom
for your financial decisions. I'm Rob West. So glad you're
along with us today. Don't go anywhere. A lot more
to come just around the corner. Glad you're with us
(22:03):
today on Faith in Finance Live. We're taking your calls
and questions today on anything financial. Let's head right back
to the phones. Miami, Florida. Leslie. Go ahead.
S4 (22:13):
Okay.
S7 (22:14):
Can you hear me?
S1 (22:15):
I sure can. Yes, sir.
S7 (22:17):
Okay, listen, I drive. Uh, thank you for taking my call.
S8 (22:21):
First of all.
S7 (22:22):
I drive a tractor trailer for the post office, and
my employer has a thrift saving program.
S8 (22:31):
Yes.
S7 (22:32):
And I have $50,000 in debt. But when the terrorists
were first implicated, it began to drop. A lot of
people lost money. So I took it out and put
it in cash where it's not being invested anymore. And
I was wondering, is it a good time to reinvest
it into Thrift Savings Plan?
S1 (22:51):
Yes. So tell me a little bit more about that.
What were you invested in inside the Thrift Savings Plan
that that declined in value so much?
S8 (23:01):
Oh.
S7 (23:01):
Okay.
S8 (23:02):
That, you know, I'm.
S7 (23:04):
Not good at investing thing, but I invested 100% into
the plan that they had for me. And I was wondering,
you know, should I put it back or just wait?
S8 (23:16):
Yeah. Okay. I wasn't sure what the plan was.
S1 (23:19):
Yeah. And did you leave it in the Thrift Savings
and just move it to, you know, into, like, the, uh,
the G fund?
S7 (23:26):
Yes. That's it exactly.
S1 (23:29):
Okay. Yeah. Uh, I mean, the the challenge here is that,
you know, trying to time the market just really doesn't
work well. And I realize that's in hindsight, but I'm
just saying, moving forward, the key principle here is that
getting out when it falls and back in when it
rises almost always hurts, returns in the long run. You know,
(23:50):
the TSP is really designed for long term growth, not
short term trading. And so really what you need to
do is decide on a long term allocation, uh, you know,
that matches your age, uh, your goals, your risk tolerance. Uh,
so the, the mix generally of stocks and bonds, you know,
(24:11):
is what we're talking about there. Um, and then, you know,
beyond that, you want to put money into that allocation,
both the existing funds and new funds as you make
contributions moving forward. Um, and then you want to use
dollar cost averaging, which is basically by staying invested, even
when the market's down, it provides you a wonderful opportunity
(24:35):
to buy in at lower prices. Now, the great thing
about the TSP plan, Leslie, is that it's fairly simple.
I mean, they've got like five core funds other than
what are called their lifecycle funds. So they've got the G,
the F, the C, the S and the I. So
the G is probably where you're at now, which is
like the government securities fund. So very low risk but
(24:58):
not a whole lot of yield. Um, then you've got
the F fund, which is the fixed income fund that
tracks the bond index. Then you've got the C fund,
which is kind of like the S&P 500. You've got
the S fund which is the small caps. And then
the I which is the international. So what is your age, Leslie?
S7 (25:18):
I'm 62 years old. I'm still working, thank God.
S1 (25:21):
Okay. Yeah. So that's great. So, I mean, at your age,
I'd probably say you want maybe a 5050 portfolio, 50%
in the fixed income, which is the F fund, and
then the other 50%, I would put like two thirds
of it in the C fund. And then maybe the
balance of it in the s and the I. Um,
(25:43):
but the idea is you want about a 5050 split. Uh,
now if the market goes down, is this going to
go down? Yes. But the long term trends, you know,
are going to be up. And even at 62, you know,
you need to be thinking about this money lasting three
decades or more. And so what you don't want to
do is, you know, get jump in and out of
(26:05):
these funds. You want to pick that right allocation for
you and then get the money invested and then just
continue to contribute to it. And the only time you'd
make a change is, you know, when you know, as
you get older. Now, the other option is, you know,
you could use one of the life cycle funds, and
that's called a target date fund. And you, you make
(26:26):
that target based on, uh, your retirement date. So let's
say you were planning on working for another ten years. Okay.
You might pick the 2045 Life Cycle fund. And that's
automatically going to determine the mix between stocks and bonds
for you. But in either case, you know I wouldn't
be jumping in and jumping out. I would get it
(26:48):
invested and just let it grow. Recognizing there are going
to be ups and downs along the way. Does that
make sense?
S7 (26:55):
Yes, it makes a lot of sense.
S8 (26:57):
Okay.
S1 (26:58):
So I would say either the 2045 Life Cycle Fund
or take it about 50, 50, 50 in the F
and then the other 50 between the three stock funds,
I think would be probably the best way to go. Hey, Leslie,
thanks for your call today. We appreciate you being on
the program. Let's go to Georgia. Hi, Nadine. How can
(27:19):
I help you?
S9 (27:21):
Hi. How are you?
S1 (27:22):
Great. Thank you.
S9 (27:23):
Thanks for taking my call. Of course. I have in
a high yield savings account, $80,000. I have two cars,
but I'm trying to pay off stuff. Especially the car.
One car? I've gotten it down to call it $4,400.
I was trying to figure out if I need to
take the money from the $80,000 and just pay off
(27:47):
the car again. I've paid ahead in the car payment
so much where my next car payment is due in 2028,
right about May 2028, and my paying $0.57 or so
interest per day if I leave it there. And every
month I put like $5,600 for that car payment. So
(28:08):
I'll be my aim is to be finished with that
this year.
S1 (28:12):
Okay.
S9 (28:13):
So would you say I need to take the money
from the the $80,000 or. And I'm also trying to
figure out how can I make this $80,000 go a
little bit further for me. And I don't like taking
a lot of risk. I can tell you that much.
But I know I have to take some risk, but
not much because that's all I have.
S8 (28:32):
Yes, yes.
S9 (28:33):
That's all I have.
S1 (28:35):
Great. Well, I love that you are being really diligent
and you're getting you're very focused on getting out of debt.
That's great. You've accumulated a nice nest egg. That's great. Um,
the only question would just be to your final point
about how you get this working for you. Um, what
do you do for a living? And do you have
access to a retirement plan? Oh, unfortunately, I'm losing you there.
(29:00):
Are you back with me? Oh, there you are. Yeah.
No problem.
S8 (29:04):
Go ahead.
S9 (29:05):
I am on a 401 K, 401 k. Um, I'm
a manager. Um, for one, I have around $70,000.
S8 (29:15):
Okay.
S9 (29:15):
Can you hear.
S8 (29:16):
Me?
S1 (29:16):
I sure can, yes.
S9 (29:18):
Yes, $70,000. And it's so far, I continue to contribute
in 15% of my pay to that. Um, yeah.
S1 (29:28):
Okay, great. And then. Yeah. No, that's that's excellent. And
what is your age?
S9 (29:33):
I am 54. In the next couple of days on ten, ten.
S1 (29:37):
Okay, great. Well, happy early birthday to you. That's amazing. Um, well,
there is a catch up provision. Um, I love the 15%,
but if you feel like you're a little behind, and
I would say, you know, in your mid 50s having 70,000,
we probably do need, you know, to prioritize getting as
much into that as you can because you really want
(29:57):
it in that tax deferred environment. And the nice thing
is that once you're over 50, you can put in
in your contribution, not your employer match, but just the
employee contribution. 30,500. So I would max that out right
now and try to get as much of that 80,000,
shifting it from the taxable environment over to the tax
(30:19):
deferred environment, which is really where we want it for
long term. As far as that 80,000 goes, I'd set
aside six months expenses and just leave it in savings.
And if you're just going to continue to pay the
car out of current cash flow, I think we can
use the rest to boost that. Those retirement savings, even
if it brought your pay check down to low and
(30:40):
you had to draw from it. Think about it as
shifting it from taxable to tax deferred. Stay on the line.
We'll talk a bit more. We'll be right back. Well,
it just seems like every few days the market's bumping
up against new all time highs. And another record close
(31:02):
today with help from Nvidia. The the big chip maker,
Bob Dole is here to weigh in on the markets.
And Bob, you know, since we spoke last week, obviously
we had that, uh, interest rate, the fed funds rate cut. Uh,
we also had the commentary surrounding it. So just give
us your take on everything that happened last week.
S10 (31:21):
Well, the last week was the first in quite some time. Uh,
and forecast is, uh, more to come. And the fed
sort of hinted at that. I don't think it's going
to be long string that the futures market between here
and the end of next year is suggesting five more cuts.
I think it will be half that, Rob. Uh, which
could be disappointing if we actually cut five more times
(31:43):
than the next, um, 15 months. That probably means the
economy is really slow and we'll have earnings problems and
the market won't like that. But in the meantime the
fed cutting rates earnings doing fine. Stocks tend to go up.
S1 (31:56):
Yeah there's no question about it. And um you know
as we look at the economy Bob, um, you know
apart from interest rates and the strong earnings seasons that we,
that we just kind of went through. What is your
overall take on where we find ourselves?
S10 (32:12):
Uh, economy slowing. Um, now, we got a good number
in retail sales last week. But on the other hand,
we got information the University of Michigan consumer sentiment index,
it dropped. People are expecting conditions now in the future
to weaken. They're expecting more inflation. And this overdependence in
(32:34):
my view on high income Americans uh, is also expected
by folks. There aren't enough high American, high income Americans
to carry the whole load as low income workers are
curbing their spending. Rob.
S1 (32:49):
Yeah, talk about that for a moment. I know that
was a note in your deliberations this week about the,
you know, the approach of those two groups specifically as
it relates to consumer activity.
S10 (33:00):
Yeah. So high income Americans are spending money. Why? Because
the wealth effect from higher home prices and rising stock
portfolios is causing them to feel good about things. The
so-called wealth effect. Low income workers. They had a lot
of money through the pandemic and post that they've spent it,
and so they're in the process of curbing their spending.
S1 (33:23):
Yeah, Bob, as we look at just the breadth of
these gains, obviously, you know, we had a new Russell
2000 high, which was a sign that perhaps this isn't
just highly concentrated toward those mega cap companies, but what's
your overall assessment of just the breadth of this rally?
S10 (33:42):
Mixed. Rob. Um, one of the statistics that people look
at in the short term is what percentage of stocks
are selling above their 50 day moving average? When that's
kind of 70 and 80%, things are in gear and
people should feel good. It's 58% today. So it's not horrible,
but it's saying the breadth isn't good. I look at
my screen today. We actually outperform the averages today, but
(34:05):
I have more red on my screen than green, meaning
the average stock didn't do all that well.
S1 (34:10):
Yeah. Yeah. Interesting. Bob, what about, uh, mortgage rates? You know,
I think some people were surprised that, you know, we
actually ticked up last week. Perhaps that was just, you know,
that we had already seen the pullback in anticipation of
the rate cut. But where do you think mortgage rates
are headed over the next, let's say year?
S10 (34:29):
Probably flattish, maybe down a bit. The problem is, Rob,
is short term interest rates come down, i.e. the fed
lowers rates. That gives people concern about inflation which is
ticking higher. And that means the the longer end of
the Treasury yield curve to include mortgages probably doesn't come
(34:50):
down a whole lot in yield.
S1 (34:51):
Yeah. Interesting. All right. Bob. Well, as always, we appreciate
your time, sir.
S10 (34:56):
Have a great week.
S8 (34:56):
Thank you.
S1 (34:57):
That's Bob Dole, he's CEO and CIO at Crossmark Global Investments.
You can learn more at crossmark Global.com. All right, let's
head back to the phones here. We'll get to as
many calls as we can before we round out the
broadcast today down to Florida. Hi, Valerie. Go ahead.
S11 (35:14):
I was calling because I'm trying to figure out if
me and my husband are both self-employed and we need
to start saving for retirement kind of late in the game, but, um,
I was looking online at some different options, and it
looked like, you know, the Roth IRA is a traditional
way to go. But then I saw something come up
with an Sep IRA. Yeah. Can you let me know
(35:35):
what you think is better for us?
S1 (35:37):
Yeah, I love that. And I'd actually perhaps look at
doing both. I mean, the benefit of the Sep IRA
is that, you know, for those who have a small business, um,
you know, you have the ability to put away quite
a bit more of your income, uh, versus the Roth.
I love the Roth. And I think you should start
(35:58):
with the wrath, because that tax free growth is just amazing. Um,
but you're going to get capped out at either 7000
or 8000 a year per person if you're 50 and older. Um,
with the Sep, you can go up to 25% of
your net self-employment income. Um, and it maxes out at
(36:19):
not 8000 a year, but 69,000 a year. Uh, that
was actually last year. I think it's up to 76,000
this year. Um, now it acts like a traditional IRA.
So you get the tax deduction now, and then you
get the tax deferred growth. But for high earners wanting
to reduce taxable income and get money into a retirement
(36:41):
plan when you don't have access to one. Otherwise, as
somebody who's self-employed, that gives you quite a bit more
in the way of the, you know, contribution limit so
that you can shift income, you know, away from paying
tax on it now and get it into that tax
deferred growth environment. And so I like the idea, you know,
(37:01):
of you using these two great tools, uh, together, uh,
you know, to make sure you've got what you need
to working for you for the future.
S11 (37:12):
Okay. All right. Well, thank you. I appreciate your feedback.
S1 (37:15):
All right. Happy to do it. Thanks for your call today.
God bless you. 800 525 7000. Let's go. Uh, we'll
we'll stay in Florida. Joe. Go right ahead. Yes.
S8 (37:24):
I have.
S12 (37:25):
Uh, mother in law, that is, we've been caring for
for 20 years, but she's had to go into assisted living,
and they're telling me that, uh, she has $50,000 in
the bank, and that has to be transferred to my
wife's name because she's going. She's income does not support
the nursing home. They're going to have to go through Medicaid.
(37:49):
And if they transfer that money to my wife, Life.
Is she going to pay income tax on it?
S1 (37:58):
Well, it's a good question. Who is it that's actually
telling you to do this?
S12 (38:02):
The nursing home that's filling out the applications for the. Medicare.
S8 (38:12):
Medicaid?
S1 (38:13):
Yeah, I wouldn't do that without talking to an elder
care attorney and really getting professional guidance. I mean, the
reason this is probably being suggested is families are often
told to move assets out of a senior's name to
qualify for Medicaid coverage. Um, for that care. But first
of all, Medicaid has strict rules. They have what's called
(38:34):
a five year lookback period where any transfers or gifts,
which is what this would be. It'd be a gift
and it would not be taxable. Um, but any transfers
or gifts within five years of applying can cause you
penalties and delay benefits, and make her ineligible for care
coverage for months or even years because of the improper transfer.
(38:58):
And so you know that that is not something you
want to do. Not to mention just the the ethical
requirements or the ethical issues surrounding it. Um, if you're
wanting to do Medicaid planning, you might want to get
with an elder law attorney, somebody who specializes in this,
and they can advise you on an appropriate way to
spend down assets in approved ways, like for medical expenses and,
(39:22):
you know, home repairs and pre-paid funerals, or use a
trust or other planning tools to do this appropriately. But
just regardless of the fact that whether or not it
would be taxable to your wife, I would say, you know,
making that quote unquote gift just to get it out
of her name to allow her to qualify for Medicaid.
(39:42):
I would view as being unethical and also could result
in some pretty stiff penalties from Medicaid.
S12 (39:50):
Okay. All right. Well, I appreciate that advice. And I
will try to find one of the attorneys here, elder
law attorney and and get some answers. Thank you.
S1 (40:01):
Yeah. That's right. You're welcome. And it isn't. It's an
elder law. Attorney is the term. And if you don't
know one, you could do two things. One is call
your church, Joe and just say, you know, are there
any elder law attorneys here in the church? I need
to know about that? I'm reaching out to one second
is you could reach out to a certified Kingdom advisor
there in Florida, and they all have state attorneys that
they work with and could make a referral to a
(40:23):
godly elder law attorney. Just go to our website faith.
Com that's faith.com. Click find a professional and any one
of those certified Kingdom advisors could assist you with a referral.
We appreciate your call today. Um, unfortunately, we are out
of time here in just a moment. Terry, I don't
want to have to rush you. So let's see if
(40:43):
we can get you on the program tomorrow, and we'll
try to get you scheduled for that broadcast. Terry, thank
you for calling. Today, folks, as we round out the
broadcast today, let me just mention we are still on
our way toward our goal with our friends at Buckner.
Shoes for orphan souls. Um, here's our challenge this month.
(41:06):
The opportunity that we have. We've partnered with Buckner during
the back to school month of September to put shoes
not only on our kids and the kids that we
have under our care here in the US. But specifically,
these 1000 shoes are for children that desperately need shoes
in some part of the world where it's just not
(41:26):
a luxury item or a lifestyle thing. I mean, this
is the key to them protecting against food borne illness,
being able to get to school because they don't have
a pair of shoes. Obviously demonstrating their worth and God's
love and just the extension of this gift, but then
also the opportunity to share Jesus with them through the
shoe distribution. Every $15 given will pay for a pair,
(41:51):
a new pair of shoes, a pair of socks and
the cost to transport these shoes to the shoe distribution
somewhere in the world. We've got about 600 of our
1000 pairs of shoes already underwritten, and we'd love for
you to help us reach that full $1,000 1000 shoe goal.
(42:11):
We've got eight days to do it. The website is
give shoes today. That's give shoes today. Your faith. Fi
and Buckner shoes for orphan souls trying to impact 1000 children.
You can help us get there. Give shoes today. Well,
big thanks to my team today. Have an amazing group
of men and women that serve us each day, including
(42:33):
Omar and Tahira and Jim and our call screeners. Faith
and Finance Lives, a partnership between Moody Radio and Faith. Fi.
Have a wonderful day. Come back and join us tomorrow.
We'll see you then. Bye bye.
Popular Podcasts
CrimeLess: Hillbilly Heist
It’s 1996 in rural North Carolina, and an oddball crew makes history when they pull off America’s third largest cash heist. But it’s all downhill from there. Join host Johnny Knoxville as he unspools a wild and woolly tale about a group of regular ‘ol folks who risked it all for a chance at a better life. CrimeLess: Hillbilly Heist answers the question: what would you do with 17.3 million dollars? The answer includes diamond rings, mansions, velvet Elvis paintings, plus a run for the border, murder-for-hire-plots, and FBI busts.
Crime Junkie
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.
Stuff You Should Know
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.