December 10, 2025 • 42 mins
The end of the year is coming fast. While it’s full of festivities, it’s also the perfect time to get financially organized. From reviewing your goals to maximizing retirement contributions and planning your giving, there’s still time to finish the year well. On the next Faith & Finance Live, Rob West and Cole Pearson share some practical steps to prepare financially. Then, it’s your calls. That’s Faith and Finance live . . . biblical wisdom for your financial decisions. That’s weekdays at 4pm Eastern/3pm Central on Moody Radio.
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Episode Transcript
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S1 (00:08):
The end of the year is coming fast, and while
most of us are busy with family gatherings, travel and
holiday plans, it's also the perfect time to get financially organised. Hi,
I'm Rob West. From reviewing your goals to maximising retirement
contributions and planning your giving, there's still time to finish
the year well. Cole Pearson joins us today to share
(00:28):
some practical steps to prepare your finances for the year ahead.
Then it's on to your calls at 800 525 7000.
This is faith in finance. Live. Biblical wisdom for your
financial decisions. Well, it's always a pleasure to welcome back
our friend Cole Pearson, president of investment Solutions at One Ascent,
(00:49):
a family of companies committed to helping investors align their
portfolios with their biblical values. One ascent is also a
valued underwriter of this program. Cole, great to have you back.
S2 (01:00):
Thanks, Rob. Great to be with you.
S1 (01:02):
Cole, this time of year can feel pretty hectic. I mean,
we have family gatherings. Of course, there's the travel, all
the holiday plans, but it's also an ideal moment to
get our finances in order. So I'd love for you
to help us do that today. And where should we begin?
S2 (01:16):
Yeah, absolutely. Rob. As you mentioned, as the year winds down,
it's the perfect time to pause, make sure that our
financial life still reflects our actual life, our goals and values.
And so we always encourage investors to take some time
to sit down with the people that they make financial
decisions with, whether that be their spouse or other family members,
maybe even a financial advisor. And talk about what's most
(01:37):
important to you as a family. It's important that these times,
as we get to spend time with family to remind
ourselves of what's important. And so these conversations help ensure
that we're managing and investing money in a way that
aligns with the life we want to live and the
values we want to pass on. And so as we
start that process, as you're moving into the end of
the year, I want ascent. We've developed some tools to
help clients look at their finances through three key lenses.
(01:58):
One of those is perspectives, right? How do you think
and feel about money? Every day we get to interact
with money, and whether we're spending it, we're saving it,
we're investing it or giving it away. And as you've
often said, Rob, money is just a tool, right? No
one use of money is necessarily better or worse than another.
It's just a tool. But what's important is to understand
how God's wired us and which uses come naturally. So
(02:20):
that's perspectives. And another tool that we've developed is priorities.
So now that we understand our perspectives now let's clarify
what matters most to our family. What is this money for?
Why has God entrusted it to us to steward? Is
that leaving a legacy? Is it providing security? Is it
maybe giving generously or freeing up more time for relationships? Right.
Knowing those top priorities allows us to give the dollars
(02:42):
that we're stewarding a job, right. Those dollars have a
specific purpose that brings focus and direction to our plan.
And then finally is milestones identifying what's happening in our
life right now. At the end of the year, it's
a good time to take stock of what's happened. Has
there been a change in the family either loss or
new life. Maybe a grandchild or a child's been born.
Any changes in career health? Right. These transitions, they put
(03:06):
money in motion. And it can be a signal to
us that it's time to review our plan and make adjustments.
So together, these three lenses perspectives, priorities and milestones help
us ensure our goals, our plan, and our values are
all aligned.
S1 (03:18):
Oh, that's really well said and I love that you
start with the values really the why side of the equation.
I know you mentioned generosity and that's near and dear
to your heart and the team there at one ascent.
What steps can families take now to prepare financially for
the year ahead in this area of generosity?
S2 (03:33):
Yeah. With giving, making sure that it's intentional first and
then it's aligned right. The way we give should reflect
those same values that guide our investing decisions, our planning decisions.
And so for many families, that can mean looking at
generosity and how it fits into the broader goals. Generosity
can be both an act of worship and a reflection
of our values in action. And so whether you're investing
(03:54):
or giving, we think of both as investing God's resources.
How do we make sure that they're all pulling in
the same direction? Talking about that as a family, especially here,
as we move into the end of the year, it
creates unity, creates clarity, and it creates impact. It allows
our resources to tell a consistent story about what matters
most to us.
S1 (04:12):
We've got just 45 seconds left. Cole. You mentioned investing.
Perhaps this is the year in 2026 that some of
our listeners will say, I'm going all in on faith
based investing is a first step to screen your portfolio
and see where you're at.
S2 (04:27):
I think absolutely. When we think about faith based investing, first,
what are we invested in that may not align with
our faith, with God's principles and God's values. So screening
is a great place to start to get clear on
where we may have misalignment so that we can move
to alignment. Where do we need to repurpose dollars and
redeploy dollars back into companies that are bringing blessing and
(04:48):
align with God's principles?
S1 (04:50):
Well, it's so well said Cole. We're so thankful to
be partnered with One Ascent. Thanks for your sponsorship and
your friendship. We appreciate you.
S2 (04:57):
My pleasure. Thanks for having me.
S1 (04:58):
That's Cole Pearson with one ascent. They believe your investments
can reflect your values by directing your capital toward companies
that make a positive impact in the world. To explore
a new way of investing that aligns with your values,
visit one Uscentcom to get connected today. That's one uscentcom.
(05:21):
We'll be right back.
S3 (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 (05:59):
Thanks for joining us today on Faith and Finance Live.
I'm Rob West. Well, really looking forward to hearing from
you today. Taking your calls and questions on anything financial,
the number to call to get in on the conversation
800 525 7000. That's 800 525 7000. The Dow Jones
closed nearly 500 points higher after the fed cuts rates.
(06:23):
We'll get more information on that from Bob Dole in
our final segment today. But just by way of news update,
the US Federal Reserve voted to cut its benchmark interest
rate by 25 basis points, lowering the target range from
to three and a half, upwards of 3.75%. Uh, it
was widely expected, and this marks the central bank's third
(06:46):
consecutive reduction and its final policy decision of 2025. The
decision reflects a difficult balancing act. While inflation remains somewhat elevated,
officials are increasingly concerned about a cooling labor market, with
unemployment edging up to 4.4%. The move was further complicated
(07:06):
by a lack of recent economic data caused by the
recent government shutdown. Notably, the vote was highly divisive 9
to 3, highlighting internal conflict at the central bank. Looking ahead,
the fed signaled a cautious approach for 2026, projecting fewer
cuts as it navigates uncertain economic conditions, and the market
(07:31):
clearly liked what it saw. The Dow Jones up a
full 1%. We'll get Bob Dole's take on that in
our final segment today. We look forward to hearing from him.
But in the meantime, we've got plenty of room for
your calls and questions. So if you'd like to get
in on the conversation conversation today, go ahead and call
right now 800 525 7000. Let me once again put
(07:52):
out that call, which I'm going to do today, tomorrow
and Friday, but could really use your help if you
are a client of a certified Kingdom advisor. So you
have an advisor and that advisor is a Certified Kingdom advisor,
I could use your help with a research project we're
conducting nationwide studying the impact of a ka's advice. And
(08:13):
so if that's you, we could use your help. Just
head to faith. That's faith. It will take you about
ten minutes, but it'll be highly valuable to us here
as we study the impact of Certified Kingdom advisors. And
so if you've got ten minutes to spare and you
can go to Faith comm slash survey, I would certainly
(08:34):
be grateful. All right, let's head to the phones. We're
going to begin today in Georgia. Gregory. Go ahead.
S4 (08:43):
Gregory. Hey there. Gregory. Yeah, I'm here, I'm here. How
are you today?
S1 (08:47):
I'm doing great. How can I help you?
S4 (08:49):
Okay. Very good. Um, I was considering doing the reverse mortgage.
As a former kind of facilitate my retirement, I have
about $370,000 value on the house. I only owe about $105,000,
and so I didn't really have a good understanding of that.
(09:11):
So I was just trying to see if that would be, uh,
something that would help or facilitate, you know, going into
retirement and is now a good time to think about
doing something like that.
S1 (09:24):
Yes. Uh, and what did you say? Or maybe you
didn't mention, but what is your age?
S4 (09:29):
I'm 70 today.
S1 (09:32):
Okay. Got it. Hey, congratulations. Happy birthday. That's amazing. Um,
so delighted you called. I hope it's been a wonderful day.
And I'm thrilled to help you think through this. Uh,
you know, when we think about a home equity conversion mortgage,
which is really, uh, the reverse mortgages of today, it's
the only one I would consider. It really depends on
(09:52):
your goals and how long you plan to stay in
the home. So here's how you might want to think
about it. At age 70, you're absolutely eligible. Um, but
because you owe 140,000, uh, they would want to make
sure that you have at least 50% equity in that home.
So on a $340,000 home, I think that's what you said.
(10:14):
Or maybe 370. You clearly have at least 50% equity.
So given your age and the amount of equity that
you have, that means you are eligible for it, uh,
your payment would go away because the existing mortgage, whether
or not you took another dollar out of the reverse mortgage,
at the very least, if you just refinanced, essentially paid
(10:35):
off the existing forward mortgage with the reverse mortgage, you
would no longer have a monthly payment. It would be
optional at that point, which could help with retirement cash flow.
I suspect that's your biggest monthly expense. Now you'd have
to keep up the property taxes and the homeowner's insurance
and maintenance. Um, but it could be a great option
(10:56):
if you're strained for cashflow and you don't mind. You know,
that balance increasing with interest and fees over time. Now
your home is likely going to continue to appreciate. So
you may end up preserving, you know, most if not
all of the equity that you have in there just
by way of the home appreciating, but that balance would
(11:16):
be growing with it. But if that was the difference
between you being able to stay in your home and
balance your budget, then I think it is a great option,
one worth considering. The only other option might be selling
it and downsizing, but you know you're going to be
really challenged to find something. You know, if you were to.
What did you say the home was worth? Do you
think it's three 7370? Okay. Yeah. So if we take
(11:41):
away the 140,000 that you owe, so if you were
to sell it, that would give you 230,000 that you
could use, and then you'd have all the expenses associated
with it. So let's say you ended up with, you know, 215,000.
You know, you're going to struggle to find something, uh,
you know, that allows you to buy it with cash.
So the benefit of the reverse here would be you
(12:01):
stay in the home, you enjoy the house you have
right now, but you no longer have that payment. And
for many retirees, that's a game changer, where now all
of a sudden they can balance their budget. But give
me your thoughts on that and any follow up questions
you have.
S4 (12:16):
Okay. Uh, actually it's not 140. I only 0104.
S1 (12:21):
Ah. Got it. So that's even better. So that gives
you a little bit more equity. You could you could
pay off that mortgage with the reverse the payment goes away.
And then if you wanted to get more out you
could do that. Uh, and that would come in the
form of either a line of credit or a monthly check.
S4 (12:40):
Okay. So what kind of interest rate could I secure
for on that reverse mortgage? Because I'm paying 3.5 right now.
S1 (12:48):
Yeah. So it would it would definitely go up. Uh,
and typically these are variable rates, uh, you know, so,
you know, the adjustable interest rate right now, uh, right
now is in the ballpark of 6 to 7%. So
clearly it would be higher. Uh, you could get a
fixed rate hecm home equity conversion mortgage. But, you know,
(13:10):
those are often even a bit more 7 to 8.
So I'd probably stay in the adjustable rate. It would
come down as rates come down. Um, so that balance
would be growing and it, it would be more interest
over time versus what you have right now. But you know,
for folks that do this, they consider two factors. Number
(13:30):
one is their home is continuing to appreciate. So that's
helping to offset the effects of the interest. Number two
it's really the differentiator. Once they get rid of that
mortgage payment and being able to balance the budget and
stay in their current home. And that's really the key.
Does that make sense.
S4 (13:49):
That makes excellent sense. So the main thing I need
to look at is make sure I get the adjustable
rate and not the fixed rate.
S1 (13:56):
That's right. Yeah. And you want to get with a trusted, uh,
counselor who can help you walk through this. And first
of all, lead with education before even selling you anything, uh,
you can head to movement to connect with our friends
at Movement Mortgage. They specialize in this. Or if you
hold the line, our team can get your information and
get somebody in touch with you. Gregory, thanks for your
(14:17):
call today. We appreciate you being on the program. Lord
bless you. Well, the number 800 525 7000. I've got
some lines open. We'll be right back after this break.
Thanks for joining us today on Faith and Finance Live.
I'm Rob West where we're headed toward year end. You
(14:39):
know what that means. Ministries that rely on donor support. Uh,
this is a big time of year. And that's certainly
true for Moody Radio. That's also true for faith by
the ministry that brings you this program every day. And
we've got some big plans for next year. A new
product category, Faith five Field Guides, are going to help
you work through a single question like, how do I
(14:59):
prepare the next steward? How do I set a financial
finish line? How do I give intentionally? We're also coming
out with a brand new Faith V app, Faith V
5.0 The Intelligence, the new daily, weekly and monthly rhythms.
The integration of our Faith VI content. Think about it
like not only a money management system that's simple and
easy to use, but really a discipleship tool on your
(15:21):
phone to really help you cultivate the right rhythms and
the right understanding of God's Word as it relates to
your daily financial decisions right there on your smartphone. Those
and many more coming next year and all of that
as a result of your listener support. So if you
love the ministry and you want to support Faith VI
here at the end of the year, we'd be grateful. Uh,
(15:41):
every gift is doubled up to 175,000. We're not quite there. Uh,
so your gift will be doubled, gifts of any amount
and a gift of every amount. Really, any amount that
you give allows us as our. Thank you to send
you my new hardback beautiful devotional, Our Ultimate Treasure that
comes out in January. So just head to faith. Com.
(16:04):
That's faith.com/give. Alright. Uh. Headed to Tennessee. Mary. Go ahead.
S5 (16:10):
Hi. Thank you for taking my call. I would like
to set up a 529 savings for my new great grandson.
And can you give me information on this savings plan
and investing in his future?
S1 (16:27):
I'd be happy to. What is, uh. What did you
say his age is?
S5 (16:31):
He's just going to be born.
S1 (16:33):
Okay. All right. What a Christmas gift. That's great. I
love that you're thinking about this so early. You sound
like a wonderful, uh, future grandmother. And, uh, And this
is phenomenal. Yeah, I like the 529 college savings plan
a lot, Mary. It's a great way to help your new, uh,
(16:54):
great grandson prepare for future education costs. Uh, here's what
you need to know. It's tax free growth. So the
money grows, tax deferred, and withdrawals are tax free when
used for qualified education expenses. So think college, trade school,
grad school, even some K to 12 tuition. You stay
(17:14):
in control. You're the account owner. So you control the
money and how it's invested. And it's flexible. If the
child doesn't use it, you could change the beneficiary to
another family member. Uh, it even through new legislation with
Secure act 2.0, you can eventually roll it over up
to $35,000 into a Roth IRA, which could be a
great option to be able to seed a long term
(17:37):
retirement plan if he doesn't use it. And if he
gets scholarships and or grants, you can get the money
out on a pro rata basis based on those scholarships
and grants. Um, the 529 is opened at the state level.
Every state has one. And you're in the state of Tennessee. Um,
you know that it is a good plan. It offers
(17:57):
flexible contributions. They they have age based investments, which makes
it pretty simple because, you know, you just put in
the age of the child and it will automatically get
more conservative as the child gets closer to college. So
you don't have the, the volatility. Um, you know, it
doesn't offer a state income tax deduction or a credit
(18:18):
in Tennessee for 529 contributions, which some do. So that
may mean you could look elsewhere. And I'm going to
give you a website to go to. And what they
do is they're constantly rating the 529 plans based on
the features of the plan, but more importantly, the investment performance.
And you might find that another state's plan outperforms Tennessee.
(18:41):
And because Tennessee doesn't give you that in state income
tax deduction, there's really not any benefit to stay in
Tennessee because the money of any state's 529 can be
used at any college, you know, trade school, university in
the country, even some outside. Um, so I would head
to Savingforcollege.com. Savingforcollege.com. And you can run through, you know,
(19:06):
their online tool to determine the best state for you,
and then you'd open it up online. It'll take you
just a few minutes. And then typically people set up
a monthly contribution. But you can also put in a
lump sum as well. You may want to try to
stay under that annual gift limit, uh, which is $18,000
(19:27):
per person. You could go over that. You just have
to tell the IRS you did it, even though it
wouldn't be taxable. But what questions do you have on
all that? I know I threw a lot at you.
S5 (19:36):
Okay. You did well, I'm going to work with my, um,
my grandson to, to help me do this, because can
he can I make him the him and his wife
the beneficiary of this? Because I'm 86 and I have
my own things for them. But since I'm older, I mean,
I wanted to make a one time when he's born.
And then what about contributions for the other family members
(19:58):
besides myself? Does it just has to be myself?
S1 (20:01):
No, no. Others could contribute. There does need to be
one owner. And so your your son could be the
owner of the account. Your great grandson would be the beneficiary.
So it's for the benefit of the child. But your
your son could be the owner of it. And then
you and he and others could contribute to it.
S5 (20:20):
Okay. Well, it sounds like a lot to learn. So.
S1 (20:23):
Yeah, I mean, the bottom line is it's a really
tax advantaged vehicle. It's simple to set up. The only
real decision you need to make is what states 529
to put it in. And it could just be real simple.
You just go with Tennessee's plan if you want. But
if you wanted to do a little bit of homework
or maybe your, your, your son helps you do some
homework to see. Is there another state that might be
(20:46):
more favorable in terms of investment performance, specifically because Tennessee
offers very little resident benefit, uh, whereas some offer more.
So it makes it more, you know, uh, there's more
incentive to go to another state's plan. That's where this
website I've given you saving for college might help you
and your son decide whether another state's 529 is better,
(21:08):
but the the setting it up and funding it and
picking the investments, they make it very easy. So there's
nothing really to be concerned about.
S5 (21:16):
Okay. I really do thank you for that because I
think that's the best way that I can help them
get started for his future. And he knows he has
to save.
S1 (21:24):
Yes. Well, it'll be a real blessing to them and
to your great your future great grandson. So listen. Congratulations, Mary.
Merry Christmas. Thank you for calling today. Lord bless you.
S5 (21:35):
Thank you for your service. Bye bye.
S1 (21:37):
Alright. Alrighty. This is faith and finance. Live a break
just around the corner and back with more questions. We
do have four lines. Open 800 525 7000. Don't go anywhere.
We got a lot more to come. Hey, thanks for
(22:05):
joining us today on Faith and Finance Live. I'm Rob West.
Coming up in our final segment today, Bob Dole stops by.
Bob will weigh in on this decision we got today
from the US Federal Reserve. They voted to cut their
benchmark interest rate by 25 basis points, one quarter of 1%.
It was widely expected that will result in a continued
(22:26):
decline in interest rates. Not good for savers, but certainly
good for those loans, especially those kind of holding out,
waiting to buy a home, hoping for some lower interest rates.
There's not a 1 to 1 correlation there with the
central bank and mortgage rates, but the general trajectory is downward.
Even though the fed was pretty clear today that they're
(22:47):
going to take a cautious approach for 2026 because they're balancing,
you know, somewhat elevated inflation that's been a bit sticky
and a cooling labor market and a slowing economy. They're
trying to on one hand, kind of juice the economy.
And on the other hand, make sure that we don't
continue to see elevated inflation because there's a lot of
(23:09):
concern about prices. We'll get Bob Dole's take on that.
But the markets liked it closing up, at least on
the Dow Jones up more than or nearly 500 points today.
Let's head back to the phones. Buffalo Grove Illinois Kristie.
Go ahead.
S6 (23:24):
Hey, Rob. Thank you. Um, listen, my question is I
have a pretty sizable check coming to me from an
account that has closed, and I've been interviewing financial advisors,
but I want a holding place for the next maybe
a few weeks, maybe up to a couple months where
the money can earn some interest. But it's my understanding
(23:47):
that the money is only protected in these money market accounts.
Up to 250,000. And I'm wondering, um, do I have
to open multiple accounts in order to earn interest? Um,
to have that protection, or is there a way to
increase that dollar amount that is protected, um, in a
(24:12):
single account?
S1 (24:14):
Yeah, yeah, it's a great question. Um, do you mind
me asking how much total you have coming?
S6 (24:20):
Uh, it's it's, uh, it's a sizable amount.
S1 (24:26):
Okay.
S6 (24:26):
It's about a million. It's. Yeah, it's a sizable amount.
I'd have to open probably about five accounts.
S1 (24:33):
Yeah, yeah, yeah. So there's a couple of options here.
I mean, one would be use multiple banks so you
could can open accounts at different FDIC insured banks. So
each bank's $250,000 limit per account type applies. And so
you'd have 250,000 to bank A and 250,000 A bank B.
(24:53):
The other option at the same bank would be different
ownership categories. So and you can only go so far
with this. But if you had one in your name only,
that could have 250 if you were married and you
had another account at the same bank that was jointly held,
your name and your husband's name, you could get another
250,000 on that. So it's not only by institution, but
(25:17):
it's also by account type. Um, if you had a trust,
you could get another 250 on that. Uh, so that's
something to keep in mind. If that's not an option,
then the other, uh, you know, type of account is
something called a deposit sweep. So some banks or financial institutions, uh,
(25:38):
use programs that sweep or spread a large deposit among
multiple FDIC insured banks behind the scenes. So even a
large balance is split into chunks that fall under the
the $250,000 limit. And they kind of do the work
for you. Uh, so that would be an option for
(25:59):
you to look at as well. Are you familiar with
that idea?
S6 (26:02):
Uh, no, I've not heard of that until you just
said it.
S1 (26:05):
Okay. Yeah. So, I mean, I think that would be
the simplest. And, you know, you could go. I mean,
many local banks do this, so you'd want to, uh,
you know, just ask the bank whether they have a sweep, uh,
account option, uh, larger banks and brokerages often, you know,
will offer this as well. So think like a Fidelity
(26:28):
or Merrill Lynch or Charles Schwab or some of the
big national banks like Bank of America and others. Uh,
you know, they'll do the, uh, the cash sweep as well.
So you're just going to want to ask about that.
And you just simply say, do you offer an insured
cash sweep or equivalent service for large balances? That'd be
(26:48):
the question you'd want to ask. And then, you know,
once you do, uh, you find one that you're comfortable with,
then essentially, you know, they would, uh, would do that
work for you.
S6 (27:00):
And do they put it into a money market account
or where do they is it it's an interest bearing
account then that they're spreading the money along. Okay.
S1 (27:12):
Yeah. Exactly. So you you would be getting the, uh,
you know, the interest on each of the accounts with
the sweep and, you know, you're going to, um, you know,
want the, uh, consolidated statement. So you're going to want
one statement showing everything. But, you know, it's a pretty
popular service. And, you know, obviously, because it's multiple banks, um,
(27:36):
you know, the interest rates. You know, typically you're earning
the interest at the rate set by the primary bank. Um,
you know, that's typically the way it works. But that
would be one of the questions to ask for sure.
S6 (27:50):
Okay. Thank you so much for all that you do
I appreciate it.
S1 (27:54):
Absolutely. Christie, thanks for your call today. Lord bless you. Uh, Miami, Florida. Veronica,
how can I help?
S7 (28:00):
Yes. Hi. I would like to know, um, um, I
give my when I give my tithe and offering throughout
the year, and I get that statement back if I
file that statement with my taxes, is that taking the
money back from God, or would that hinder me somehow
in my taxes? Or maybe I'm just not understanding how
(28:21):
money works.
S1 (28:22):
Yeah, well, I love this question, Veronica, because clearly you
want to honor the Lord with what you're managing, what
he's entrusted to you. And that's great. That's the right posture. Uh,
I would just say simply no. Taking a tax deduction
for your tithe is not taking anything back from God.
Here's why. When you give to your church, the gift
is already given to the Lord. That's what we see
(28:44):
in second Corinthians nine seven. I mean, it says pretty
plainly each one has must give what he has decided
in his heart, not reluctantly or under compulsion. For God
loves a cheerful giver. So when we give, we're giving
as unto the Lord. A tax deduction doesn't reduce or
reverse any of that generosity. It simply recognizes that under
(29:07):
the law that charitable giving serves the common good. So
you're not being paid back. You're being allowed to keep
a little bit more of your income so you can
steward it wisely. So think of a deduction as good stewardship,
not reclaiming your offering. And if the government allows you
to reduce your tax burden because you give to God's work, well,
(29:28):
you can joyfully receive that benefit and then redirect those resources,
those tax savings toward further generosity and caring for your
family or savings, whatever you choose. So I think, you know,
at the end of the day, when it comes to giving,
as Christ's followers, especially the way I read the New Testament,
your heart is what matters most. And the fact that
(29:49):
you're concerned about honoring God already, I think, shows a
beautiful posture of worship. And if anything, a deduction can
be another opportunity for you to just say, Lord, you've
given some of this back through tax savings. Now, how
can I use it in service to you for your kingdom?
Does that make sense?
S7 (30:08):
Thank you. Yes, thank you very much. It makes plenty sense.
S1 (30:11):
Okay, Veronica, I appreciate your call today. Lord bless you.
Call any time. We're going to take a quick break here.
When we come back, uh, Bob Dole will join us
and we'll get his take on this, uh, fed rate cut. Uh,
clearly the market liked it, but what does that mean
for the future? And perhaps even more than the rate cut,
what was it that the fed said about 2026 and
(30:34):
their posture toward additional rate cuts. Monetary policy. Inflation, the
job market. All of it. We'll get Bob's take on
that just around the corner. We'll also try to get
to a few more phone calls. I know Mary's calling
from Missouri, and she's concerned that the dollar is failing
and want to know if she should move to gold.
We'll tackle that. Stay with us. Well, the Federal Reserve
(31:03):
has spoken. We got another quarter point cut today after
the fed meeting. The all important fed comments will tell
you what they said about the economy, the job market,
more rate cuts in 2026. Straight ahead. Bob Dole is here.
Bob is CEO and CIO of Crossmark Global Investments. He's
our go to guy on the markets and the economy.
(31:24):
It's a good day for him to be here so
we can get his reaction to all this. Clearly the
market liked it. But before we talk about the fed
cuts while Bob is here, Mary had a question in Missouri.
I thought this would be a great one for Bob
to answer. Mary, you're on with Rob West and Bob Dole.
Go ahead.
S8 (31:40):
Okay. I keep hearing this. I've talked to my financial
advisor a couple of times, but he doesn't recommend doing it.
So I need to know the dollar is the dollar failing?
Do we need to invest some money in gold?
S1 (31:57):
Yeah. Great question Bob. What are your thoughts?
S9 (32:00):
Yeah. So the dollar has had some weakness this year.
Probably has some more weakness in the years to come,
but it's still the strongest currency in the world in
terms of being broad and deep. And therefore it's the
reserve currency of the world. So it doesn't go up
all the time. Uh, as we've established this year, I
think gold is a hedge against dollar weakness. It's a
(32:23):
better hedge against inflation. So having some gold in your portfolio,
I'm fine with that. Uh, in a limited way as
that hedge, uh, primarily against inflation. Secondarily the dollar. What
I would argue is if you think there's more dollar
weakness to come, think about supplementing your domestic, your US
stock positions with some international ones. Find a good mutual fund, uh,
(32:47):
with international stocks. Those stocks have done well because a
lot cheaper than the US. And there are many economies
around the world that are slowly improving.
S1 (32:56):
Yeah. I mean I think that's really well said Mary.
You know, just to summarize, I mean, what Bob is
saying is exactly right. I mean, you look in the
rear view mirror, despite our challenges, there really isn't a
close second in terms of a reserve currency and just
the size and breadth. And, uh, you know, uh, performance
of the US economy and despite our challenges, rising debt
(33:19):
and monetary and fiscal policy, uh, the US is still
the place to be. But, uh, to his point, you
talking to your advisor about do we have some international exposure?
You know, is the right thing. And precious metals. Let's
not get Overweighted, Bob, would you say? You know, somewhere
between five and max, 10% on gold?
S9 (33:37):
Exactly. A single digit percentage makes sense in this environment.
S1 (33:41):
Yeah. Mary, thanks for your call today. I hope that helps. Bob,
you know, when we're looking at these interest rates, obviously
the rate cut is important. The market was expecting it
and clearly liked what it saw. But what's perhaps more
important is what the fed says after they cut about
the forward looking, uh, thoughts. You know, give us a
summary of that.
S9 (34:01):
Yeah. As pretty much as expected they cut. But they
also said not so sure about going forward. They're going
to be, quote, data dependent as they always are. So
people looked at this as as the so-called hawkish cut
that is they cut. But they said, ah, be careful
about how many more we're going to do. Uh, but
(34:21):
they left enough room if there is economic weakness to
cut some more. And that's what the markets liked.
S1 (34:29):
Yeah. Uh, obviously for savers out there, they're hearing this
and they're saying, wait a minute. Those high yield savings
rates that I've become accustomed to are going to be
headed down. You know, could we settle in to something
you think you know, in the high threes, low fours
throughout next year, or do you think it's coming down
more than that.
S9 (34:47):
I think it will come down some rob but not
a whole lot. Um, we still have an inflation that is, um,
running closer to 3% than two. And that's going to
prevent the fed from cutting significantly unless we have a
lot more economic weakness, uh, than, than than the numbers
are showing now and the fed believes so. A little
(35:09):
more to come, but not a lot.
S1 (35:10):
Did they comment specifically on the economy or the job market?
S9 (35:14):
They did. Uh, they said the economy is doing okay. Um,
you know, it's not it's not going to win any awards,
but it's doing just fine. Thank you. In terms of jobs, um,
you know, they said the job market is is good,
but slowly weakening a bit. And that's among the reasons
the cut rates 25 today.
S1 (35:35):
One big beautiful bill kicks in next year. We locked
in the tax cuts. You know we've got deregulation. We've
also got some tariffs. Any comments just about President Trump's
policy which will be in full effect in 2026.
S9 (35:48):
It will. And all the things you just mentioned are
generally tailwinds for the economy. Um, individuals we pay in
lower tax rates, uh, corporations will have the ability to expense, um,
some of their capital moves, which is a positive. Um, uh,
we've got, uh, a number of things that provide further
(36:11):
tailwinds to the economy, which is another reason why the
Fed's got to be careful how much they think about
lowering rates.
S1 (36:18):
Yeah. Very good. Bob. Last question. What about mortgage rates?
Those who have been sitting on the sideline, you know,
perhaps this is the time to go ahead and make
that purchase if they're ready. Is that right?
S9 (36:29):
Yeah, I think that look, as interest rates come down, um,
mortgage rates come down too. Um, so a little bit
more decline in mortgage rates, but not a whole lot, uh,
barring a recession.
S1 (36:42):
Excellent, Bob. Thanks for your time, sir.
S9 (36:44):
Have a great week.
S1 (36:45):
All right. That's Bob Dole, he's CEO and CIO at
Crossmark Global Investments. You can learn more at Crossmark global.
All right. Back to the phones. Chicago, Illinois. D go ahead.
S6 (36:59):
Hi.
S1 (37:00):
Hi, there. How can I help you?
S10 (37:02):
Well, um, I am about 10 or 12 years from
retirement and I will retire with a pension. I own
a couple of properties, and I was wondering, um, how
I should start, um, preparing for my retirement. Um, should
I sell those properties and, um, kind of take the
(37:26):
proceeds and Invest in a condo or move into a,
you know, a senior community or 55 and older community or, um,
I would like to retire early if that was possible
at all. That would be great. But even with that,
(37:46):
if I wanted to do that. But what do you
suggest that I do as far as, um, I have
these two properties. One is probably has a market value
of about 270, and I owe $80,000 on it. Okay.
The other one has a market value of about close
(38:06):
to half a million. Um, so it's like 489 or
maybe 490 somewhere around there. But that one, um, I
purchased within the last five years. So of course I
owe about maybe um, by now two, maybe 2.99 on that.
S1 (38:23):
Yeah. Very good. Yeah. I mean, I think this really
comes down to cashflow, maintenance and lifestyle. As you approach retirement.
So with ten years to go, two properties in hand,
you know, clearly selling and downsizing can be a wise move,
but only if it strengthens your financial position. So I
think we're selling and downsizing makes sense is where, you know,
(38:46):
selling one or both properties eliminates mortgages, reduces taxes and insurance,
and frees up equity that you can invest for retirement. Uh,
you know, lower maintenance could make sense as well. I mean,
a condo, uh, or a 55 plus community often means,
you know, a lower upkeep, which is huge as you
(39:07):
move into retirement. Uh, you know, that that could be helpful.
It simplifies your finances. Owning two properties can not only
be expensive, but also unpredictable. So that creates some stability.
Fewer surprises get you out of the landlord business, which
has its own challenges. And you know, if you have
a pension plus lower Are expenses, you know, that can
(39:27):
really equal a stronger plan because you're pairing a steady
pension with lower living costs. And that could create a
very secure retirement picture, especially if you take this, you know,
the proceeds from these properties and invest it with an advisor,
you know, who could have a conservative portfolio that generates
some income, where you've got access to the capital, it's
(39:48):
no longer illiquid like it is in the real estate.
It's more liquid, but it's income generating and has some
potential for growth. I mean, I think the the you know,
on the flip side, when you might want to stay
put would be if the properties are generating significant rental
income or they're appreciating rapidly or you'd have a large
capital gains tax, um, you know, or if you plan
(40:11):
to retire in a different location, uh, entirely, um, you know,
with regard to the condo versus the 55 plus, the
condo is often cheaper. Uh, the 55 plus is going
to have more amenities, you know, in a built in
social setting, but the fees are undoubtedly, you know, going
to be higher. So that's just a lot of thoughts there.
(40:32):
But I'd be happy to entertain any follow up questions
you have?
S10 (40:36):
Um, no, I just wanted to give kind of a
general idea of how I should go about setting up,
setting myself up for retirement. Um, because again, I really
I would love to retire early. Um, but, you know, again,
it's it's a it's the cash flow. I want to
make sure that I have a strong cash flow, um,
(40:57):
for my years of retirement. And, I mean, other than
having these properties, I'm debt free. I don't have any debt. Um,
and so that that's it. I'm trying to.
S1 (41:09):
Yeah. And that's what's nice about selling is you get
rid of you reduce your living, you know, your lifestyle
spending and the debt service because those mortgages go away,
which just dramatically reduces your budget. And then this pension
is guaranteed income and then you take the proceeds, the
net profit after the taxes are paid and the realtors
(41:30):
fees and the mortgages are paid off and you invest it.
And that's just going to not only get rid of
all that debt service, but now it could throw off a,
you know, an additional monthly income that gets added to
your pension. And, you know, that feels like, uh, gives
you a lot of stability and less upkeep and work
with regard to just the, you know, the active, uh,
(41:51):
effort that goes into being a landlord and maintaining those properties.
So I think you're on to something there. I think
it really comes down to timing. I hope that helps.
Thanks for your call, D. We appreciate you being on
the program. Well, that's going to do it for us today, folks. Uh,
really delighted to have you along with us. Want to
say thanks to my team, Josh, on our phones today
to hear a Haynes producing today. Uh, Omar Mendoza, our engineer,
(42:12):
the amazing Taylor Standridge, uh, providing great research. He's our
production manager here at Finance Lives, a partnership between Moody
Radio and Faith five. We'll see you tomorrow. Bye bye.
The end of the year is coming fast, and while
most of us are busy with family gatherings, travel and
holiday plans, it's also the perfect time to get financially organised. Hi,
I'm Rob West. From reviewing your goals to maximising retirement
contributions and planning your giving, there's still time to finish
the year well. Cole Pearson joins us today to share
(00:28):
some practical steps to prepare your finances for the year ahead.
Then it's on to your calls at 800 525 7000.
This is faith in finance. Live. Biblical wisdom for your
financial decisions. Well, it's always a pleasure to welcome back
our friend Cole Pearson, president of investment Solutions at One Ascent,
(00:49):
a family of companies committed to helping investors align their
portfolios with their biblical values. One ascent is also a
valued underwriter of this program. Cole, great to have you back.
S2 (01:00):
Thanks, Rob. Great to be with you.
S1 (01:02):
Cole, this time of year can feel pretty hectic. I mean,
we have family gatherings. Of course, there's the travel, all
the holiday plans, but it's also an ideal moment to
get our finances in order. So I'd love for you
to help us do that today. And where should we begin?
S2 (01:16):
Yeah, absolutely. Rob. As you mentioned, as the year winds down,
it's the perfect time to pause, make sure that our
financial life still reflects our actual life, our goals and values.
And so we always encourage investors to take some time
to sit down with the people that they make financial
decisions with, whether that be their spouse or other family members,
maybe even a financial advisor. And talk about what's most
(01:37):
important to you as a family. It's important that these times,
as we get to spend time with family to remind
ourselves of what's important. And so these conversations help ensure
that we're managing and investing money in a way that
aligns with the life we want to live and the
values we want to pass on. And so as we
start that process, as you're moving into the end of
the year, I want ascent. We've developed some tools to
help clients look at their finances through three key lenses.
(01:58):
One of those is perspectives, right? How do you think
and feel about money? Every day we get to interact
with money, and whether we're spending it, we're saving it,
we're investing it or giving it away. And as you've
often said, Rob, money is just a tool, right? No
one use of money is necessarily better or worse than another.
It's just a tool. But what's important is to understand
how God's wired us and which uses come naturally. So
(02:20):
that's perspectives. And another tool that we've developed is priorities.
So now that we understand our perspectives now let's clarify
what matters most to our family. What is this money for?
Why has God entrusted it to us to steward? Is
that leaving a legacy? Is it providing security? Is it
maybe giving generously or freeing up more time for relationships? Right.
Knowing those top priorities allows us to give the dollars
(02:42):
that we're stewarding a job, right. Those dollars have a
specific purpose that brings focus and direction to our plan.
And then finally is milestones identifying what's happening in our
life right now. At the end of the year, it's
a good time to take stock of what's happened. Has
there been a change in the family either loss or
new life. Maybe a grandchild or a child's been born.
Any changes in career health? Right. These transitions, they put
(03:06):
money in motion. And it can be a signal to
us that it's time to review our plan and make adjustments.
So together, these three lenses perspectives, priorities and milestones help
us ensure our goals, our plan, and our values are
all aligned.
S1 (03:18):
Oh, that's really well said and I love that you
start with the values really the why side of the equation.
I know you mentioned generosity and that's near and dear
to your heart and the team there at one ascent.
What steps can families take now to prepare financially for
the year ahead in this area of generosity?
S2 (03:33):
Yeah. With giving, making sure that it's intentional first and
then it's aligned right. The way we give should reflect
those same values that guide our investing decisions, our planning decisions.
And so for many families, that can mean looking at
generosity and how it fits into the broader goals. Generosity
can be both an act of worship and a reflection
of our values in action. And so whether you're investing
(03:54):
or giving, we think of both as investing God's resources.
How do we make sure that they're all pulling in
the same direction? Talking about that as a family, especially here,
as we move into the end of the year, it
creates unity, creates clarity, and it creates impact. It allows
our resources to tell a consistent story about what matters
most to us.
S1 (04:12):
We've got just 45 seconds left. Cole. You mentioned investing.
Perhaps this is the year in 2026 that some of
our listeners will say, I'm going all in on faith
based investing is a first step to screen your portfolio
and see where you're at.
S2 (04:27):
I think absolutely. When we think about faith based investing, first,
what are we invested in that may not align with
our faith, with God's principles and God's values. So screening
is a great place to start to get clear on
where we may have misalignment so that we can move
to alignment. Where do we need to repurpose dollars and
redeploy dollars back into companies that are bringing blessing and
(04:48):
align with God's principles?
S1 (04:50):
Well, it's so well said Cole. We're so thankful to
be partnered with One Ascent. Thanks for your sponsorship and
your friendship. We appreciate you.
S2 (04:57):
My pleasure. Thanks for having me.
S1 (04:58):
That's Cole Pearson with one ascent. They believe your investments
can reflect your values by directing your capital toward companies
that make a positive impact in the world. To explore
a new way of investing that aligns with your values,
visit one Uscentcom to get connected today. That's one uscentcom.
(05:21):
We'll be right back.
S3 (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 (05:59):
Thanks for joining us today on Faith and Finance Live.
I'm Rob West. Well, really looking forward to hearing from
you today. Taking your calls and questions on anything financial,
the number to call to get in on the conversation
800 525 7000. That's 800 525 7000. The Dow Jones
closed nearly 500 points higher after the fed cuts rates.
(06:23):
We'll get more information on that from Bob Dole in
our final segment today. But just by way of news update,
the US Federal Reserve voted to cut its benchmark interest
rate by 25 basis points, lowering the target range from
to three and a half, upwards of 3.75%. Uh, it
was widely expected, and this marks the central bank's third
(06:46):
consecutive reduction and its final policy decision of 2025. The
decision reflects a difficult balancing act. While inflation remains somewhat elevated,
officials are increasingly concerned about a cooling labor market, with
unemployment edging up to 4.4%. The move was further complicated
(07:06):
by a lack of recent economic data caused by the
recent government shutdown. Notably, the vote was highly divisive 9
to 3, highlighting internal conflict at the central bank. Looking ahead,
the fed signaled a cautious approach for 2026, projecting fewer
cuts as it navigates uncertain economic conditions, and the market
(07:31):
clearly liked what it saw. The Dow Jones up a
full 1%. We'll get Bob Dole's take on that in
our final segment today. We look forward to hearing from him.
But in the meantime, we've got plenty of room for
your calls and questions. So if you'd like to get
in on the conversation conversation today, go ahead and call
right now 800 525 7000. Let me once again put
(07:52):
out that call, which I'm going to do today, tomorrow
and Friday, but could really use your help if you
are a client of a certified Kingdom advisor. So you
have an advisor and that advisor is a Certified Kingdom advisor,
I could use your help with a research project we're
conducting nationwide studying the impact of a ka's advice. And
(08:13):
so if that's you, we could use your help. Just
head to faith. That's faith. It will take you about
ten minutes, but it'll be highly valuable to us here
as we study the impact of Certified Kingdom advisors. And
so if you've got ten minutes to spare and you
can go to Faith comm slash survey, I would certainly
(08:34):
be grateful. All right, let's head to the phones. We're
going to begin today in Georgia. Gregory. Go ahead.
S4 (08:43):
Gregory. Hey there. Gregory. Yeah, I'm here, I'm here. How
are you today?
S1 (08:47):
I'm doing great. How can I help you?
S4 (08:49):
Okay. Very good. Um, I was considering doing the reverse mortgage.
As a former kind of facilitate my retirement, I have
about $370,000 value on the house. I only owe about $105,000,
and so I didn't really have a good understanding of that.
(09:11):
So I was just trying to see if that would be, uh,
something that would help or facilitate, you know, going into
retirement and is now a good time to think about
doing something like that.
S1 (09:24):
Yes. Uh, and what did you say? Or maybe you
didn't mention, but what is your age?
S4 (09:29):
I'm 70 today.
S1 (09:32):
Okay. Got it. Hey, congratulations. Happy birthday. That's amazing. Um,
so delighted you called. I hope it's been a wonderful day.
And I'm thrilled to help you think through this. Uh,
you know, when we think about a home equity conversion mortgage,
which is really, uh, the reverse mortgages of today, it's
the only one I would consider. It really depends on
(09:52):
your goals and how long you plan to stay in
the home. So here's how you might want to think
about it. At age 70, you're absolutely eligible. Um, but
because you owe 140,000, uh, they would want to make
sure that you have at least 50% equity in that home.
So on a $340,000 home, I think that's what you said.
(10:14):
Or maybe 370. You clearly have at least 50% equity.
So given your age and the amount of equity that
you have, that means you are eligible for it, uh,
your payment would go away because the existing mortgage, whether
or not you took another dollar out of the reverse mortgage,
at the very least, if you just refinanced, essentially paid
(10:35):
off the existing forward mortgage with the reverse mortgage, you
would no longer have a monthly payment. It would be
optional at that point, which could help with retirement cash flow.
I suspect that's your biggest monthly expense. Now you'd have
to keep up the property taxes and the homeowner's insurance
and maintenance. Um, but it could be a great option
(10:56):
if you're strained for cashflow and you don't mind. You know,
that balance increasing with interest and fees over time. Now
your home is likely going to continue to appreciate. So
you may end up preserving, you know, most if not
all of the equity that you have in there just
by way of the home appreciating, but that balance would
(11:16):
be growing with it. But if that was the difference
between you being able to stay in your home and
balance your budget, then I think it is a great option,
one worth considering. The only other option might be selling
it and downsizing, but you know you're going to be
really challenged to find something. You know, if you were to.
What did you say the home was worth? Do you
think it's three 7370? Okay. Yeah. So if we take
(11:41):
away the 140,000 that you owe, so if you were
to sell it, that would give you 230,000 that you
could use, and then you'd have all the expenses associated
with it. So let's say you ended up with, you know, 215,000.
You know, you're going to struggle to find something, uh,
you know, that allows you to buy it with cash.
So the benefit of the reverse here would be you
(12:01):
stay in the home, you enjoy the house you have
right now, but you no longer have that payment. And
for many retirees, that's a game changer, where now all
of a sudden they can balance their budget. But give
me your thoughts on that and any follow up questions
you have.
S4 (12:16):
Okay. Uh, actually it's not 140. I only 0104.
S1 (12:21):
Ah. Got it. So that's even better. So that gives
you a little bit more equity. You could you could
pay off that mortgage with the reverse the payment goes away.
And then if you wanted to get more out you
could do that. Uh, and that would come in the
form of either a line of credit or a monthly check.
S4 (12:40):
Okay. So what kind of interest rate could I secure
for on that reverse mortgage? Because I'm paying 3.5 right now.
S1 (12:48):
Yeah. So it would it would definitely go up. Uh,
and typically these are variable rates, uh, you know, so,
you know, the adjustable interest rate right now, uh, right
now is in the ballpark of 6 to 7%. So
clearly it would be higher. Uh, you could get a
fixed rate hecm home equity conversion mortgage. But, you know,
(13:10):
those are often even a bit more 7 to 8.
So I'd probably stay in the adjustable rate. It would
come down as rates come down. Um, so that balance
would be growing and it, it would be more interest
over time versus what you have right now. But you know,
for folks that do this, they consider two factors. Number
(13:30):
one is their home is continuing to appreciate. So that's
helping to offset the effects of the interest. Number two
it's really the differentiator. Once they get rid of that
mortgage payment and being able to balance the budget and
stay in their current home. And that's really the key.
Does that make sense.
S4 (13:49):
That makes excellent sense. So the main thing I need
to look at is make sure I get the adjustable
rate and not the fixed rate.
S1 (13:56):
That's right. Yeah. And you want to get with a trusted, uh,
counselor who can help you walk through this. And first
of all, lead with education before even selling you anything, uh,
you can head to movement to connect with our friends
at Movement Mortgage. They specialize in this. Or if you
hold the line, our team can get your information and
get somebody in touch with you. Gregory, thanks for your
(14:17):
call today. We appreciate you being on the program. Lord
bless you. Well, the number 800 525 7000. I've got
some lines open. We'll be right back after this break.
Thanks for joining us today on Faith and Finance Live.
I'm Rob West where we're headed toward year end. You
(14:39):
know what that means. Ministries that rely on donor support. Uh,
this is a big time of year. And that's certainly
true for Moody Radio. That's also true for faith by
the ministry that brings you this program every day. And
we've got some big plans for next year. A new
product category, Faith five Field Guides, are going to help
you work through a single question like, how do I
(14:59):
prepare the next steward? How do I set a financial
finish line? How do I give intentionally? We're also coming
out with a brand new Faith V app, Faith V
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(15:21):
phone to really help you cultivate the right rhythms and
the right understanding of God's Word as it relates to
your daily financial decisions right there on your smartphone. Those
and many more coming next year and all of that
as a result of your listener support. So if you
love the ministry and you want to support Faith VI
here at the end of the year, we'd be grateful. Uh,
(15:41):
every gift is doubled up to 175,000. We're not quite there. Uh,
so your gift will be doubled, gifts of any amount
and a gift of every amount. Really, any amount that
you give allows us as our. Thank you to send
you my new hardback beautiful devotional, Our Ultimate Treasure that
comes out in January. So just head to faith. Com.
(16:04):
That's faith.com/give. Alright. Uh. Headed to Tennessee. Mary. Go ahead.
S5 (16:10):
Hi. Thank you for taking my call. I would like
to set up a 529 savings for my new great grandson.
And can you give me information on this savings plan
and investing in his future?
S1 (16:27):
I'd be happy to. What is, uh. What did you
say his age is?
S5 (16:31):
He's just going to be born.
S1 (16:33):
Okay. All right. What a Christmas gift. That's great. I
love that you're thinking about this so early. You sound
like a wonderful, uh, future grandmother. And, uh, And this
is phenomenal. Yeah, I like the 529 college savings plan
a lot, Mary. It's a great way to help your new, uh,
(16:54):
great grandson prepare for future education costs. Uh, here's what
you need to know. It's tax free growth. So the
money grows, tax deferred, and withdrawals are tax free when
used for qualified education expenses. So think college, trade school,
grad school, even some K to 12 tuition. You stay
(17:14):
in control. You're the account owner. So you control the
money and how it's invested. And it's flexible. If the
child doesn't use it, you could change the beneficiary to
another family member. Uh, it even through new legislation with
Secure act 2.0, you can eventually roll it over up
to $35,000 into a Roth IRA, which could be a
great option to be able to seed a long term
(17:37):
retirement plan if he doesn't use it. And if he
gets scholarships and or grants, you can get the money
out on a pro rata basis based on those scholarships
and grants. Um, the 529 is opened at the state level.
Every state has one. And you're in the state of Tennessee. Um,
you know that it is a good plan. It offers
(17:57):
flexible contributions. They they have age based investments, which makes
it pretty simple because, you know, you just put in
the age of the child and it will automatically get
more conservative as the child gets closer to college. So
you don't have the, the volatility. Um, you know, it
doesn't offer a state income tax deduction or a credit
(18:18):
in Tennessee for 529 contributions, which some do. So that
may mean you could look elsewhere. And I'm going to
give you a website to go to. And what they
do is they're constantly rating the 529 plans based on
the features of the plan, but more importantly, the investment performance.
And you might find that another state's plan outperforms Tennessee.
(18:41):
And because Tennessee doesn't give you that in state income
tax deduction, there's really not any benefit to stay in
Tennessee because the money of any state's 529 can be
used at any college, you know, trade school, university in
the country, even some outside. Um, so I would head
to Savingforcollege.com. Savingforcollege.com. And you can run through, you know,
(19:06):
their online tool to determine the best state for you,
and then you'd open it up online. It'll take you
just a few minutes. And then typically people set up
a monthly contribution. But you can also put in a
lump sum as well. You may want to try to
stay under that annual gift limit, uh, which is $18,000
(19:27):
per person. You could go over that. You just have
to tell the IRS you did it, even though it
wouldn't be taxable. But what questions do you have on
all that? I know I threw a lot at you.
S5 (19:36):
Okay. You did well, I'm going to work with my, um,
my grandson to, to help me do this, because can
he can I make him the him and his wife
the beneficiary of this? Because I'm 86 and I have
my own things for them. But since I'm older, I mean,
I wanted to make a one time when he's born.
And then what about contributions for the other family members
(19:58):
besides myself? Does it just has to be myself?
S1 (20:01):
No, no. Others could contribute. There does need to be
one owner. And so your your son could be the
owner of the account. Your great grandson would be the beneficiary.
So it's for the benefit of the child. But your
your son could be the owner of it. And then
you and he and others could contribute to it.
S5 (20:20):
Okay. Well, it sounds like a lot to learn. So.
S1 (20:23):
Yeah, I mean, the bottom line is it's a really
tax advantaged vehicle. It's simple to set up. The only
real decision you need to make is what states 529
to put it in. And it could just be real simple.
You just go with Tennessee's plan if you want. But
if you wanted to do a little bit of homework
or maybe your, your, your son helps you do some
homework to see. Is there another state that might be
(20:46):
more favorable in terms of investment performance, specifically because Tennessee
offers very little resident benefit, uh, whereas some offer more.
So it makes it more, you know, uh, there's more
incentive to go to another state's plan. That's where this
website I've given you saving for college might help you
and your son decide whether another state's 529 is better,
(21:08):
but the the setting it up and funding it and
picking the investments, they make it very easy. So there's
nothing really to be concerned about.
S5 (21:16):
Okay. I really do thank you for that because I
think that's the best way that I can help them
get started for his future. And he knows he has
to save.
S1 (21:24):
Yes. Well, it'll be a real blessing to them and
to your great your future great grandson. So listen. Congratulations, Mary.
Merry Christmas. Thank you for calling today. Lord bless you.
S5 (21:35):
Thank you for your service. Bye bye.
S1 (21:37):
Alright. Alrighty. This is faith and finance. Live a break
just around the corner and back with more questions. We
do have four lines. Open 800 525 7000. Don't go anywhere.
We got a lot more to come. Hey, thanks for
(22:05):
joining us today on Faith and Finance Live. I'm Rob West.
Coming up in our final segment today, Bob Dole stops by.
Bob will weigh in on this decision we got today
from the US Federal Reserve. They voted to cut their
benchmark interest rate by 25 basis points, one quarter of 1%.
It was widely expected that will result in a continued
(22:26):
decline in interest rates. Not good for savers, but certainly
good for those loans, especially those kind of holding out,
waiting to buy a home, hoping for some lower interest rates.
There's not a 1 to 1 correlation there with the
central bank and mortgage rates, but the general trajectory is downward.
Even though the fed was pretty clear today that they're
(22:47):
going to take a cautious approach for 2026 because they're balancing,
you know, somewhat elevated inflation that's been a bit sticky
and a cooling labor market and a slowing economy. They're
trying to on one hand, kind of juice the economy.
And on the other hand, make sure that we don't
continue to see elevated inflation because there's a lot of
(23:09):
concern about prices. We'll get Bob Dole's take on that.
But the markets liked it closing up, at least on
the Dow Jones up more than or nearly 500 points today.
Let's head back to the phones. Buffalo Grove Illinois Kristie.
Go ahead.
S6 (23:24):
Hey, Rob. Thank you. Um, listen, my question is I
have a pretty sizable check coming to me from an
account that has closed, and I've been interviewing financial advisors,
but I want a holding place for the next maybe
a few weeks, maybe up to a couple months where
the money can earn some interest. But it's my understanding
(23:47):
that the money is only protected in these money market accounts.
Up to 250,000. And I'm wondering, um, do I have
to open multiple accounts in order to earn interest? Um,
to have that protection, or is there a way to
increase that dollar amount that is protected, um, in a
(24:12):
single account?
S1 (24:14):
Yeah, yeah, it's a great question. Um, do you mind
me asking how much total you have coming?
S6 (24:20):
Uh, it's it's, uh, it's a sizable amount.
S1 (24:26):
Okay.
S6 (24:26):
It's about a million. It's. Yeah, it's a sizable amount.
I'd have to open probably about five accounts.
S1 (24:33):
Yeah, yeah, yeah. So there's a couple of options here.
I mean, one would be use multiple banks so you
could can open accounts at different FDIC insured banks. So
each bank's $250,000 limit per account type applies. And so
you'd have 250,000 to bank A and 250,000 A bank B.
(24:53):
The other option at the same bank would be different
ownership categories. So and you can only go so far
with this. But if you had one in your name only,
that could have 250 if you were married and you
had another account at the same bank that was jointly held,
your name and your husband's name, you could get another
250,000 on that. So it's not only by institution, but
(25:17):
it's also by account type. Um, if you had a trust,
you could get another 250 on that. Uh, so that's
something to keep in mind. If that's not an option,
then the other, uh, you know, type of account is
something called a deposit sweep. So some banks or financial institutions, uh,
(25:38):
use programs that sweep or spread a large deposit among
multiple FDIC insured banks behind the scenes. So even a
large balance is split into chunks that fall under the
the $250,000 limit. And they kind of do the work
for you. Uh, so that would be an option for
(25:59):
you to look at as well. Are you familiar with
that idea?
S6 (26:02):
Uh, no, I've not heard of that until you just
said it.
S1 (26:05):
Okay. Yeah. So, I mean, I think that would be
the simplest. And, you know, you could go. I mean,
many local banks do this, so you'd want to, uh,
you know, just ask the bank whether they have a sweep, uh,
account option, uh, larger banks and brokerages often, you know,
will offer this as well. So think like a Fidelity
(26:28):
or Merrill Lynch or Charles Schwab or some of the
big national banks like Bank of America and others. Uh,
you know, they'll do the, uh, the cash sweep as well.
So you're just going to want to ask about that.
And you just simply say, do you offer an insured
cash sweep or equivalent service for large balances? That'd be
(26:48):
the question you'd want to ask. And then, you know,
once you do, uh, you find one that you're comfortable with,
then essentially, you know, they would, uh, would do that
work for you.
S6 (27:00):
And do they put it into a money market account
or where do they is it it's an interest bearing
account then that they're spreading the money along. Okay.
S1 (27:12):
Yeah. Exactly. So you you would be getting the, uh,
you know, the interest on each of the accounts with
the sweep and, you know, you're going to, um, you know,
want the, uh, consolidated statement. So you're going to want
one statement showing everything. But, you know, it's a pretty
popular service. And, you know, obviously, because it's multiple banks, um,
(27:36):
you know, the interest rates. You know, typically you're earning
the interest at the rate set by the primary bank. Um,
you know, that's typically the way it works. But that
would be one of the questions to ask for sure.
S6 (27:50):
Okay. Thank you so much for all that you do
I appreciate it.
S1 (27:54):
Absolutely. Christie, thanks for your call today. Lord bless you. Uh, Miami, Florida. Veronica,
how can I help?
S7 (28:00):
Yes. Hi. I would like to know, um, um, I
give my when I give my tithe and offering throughout
the year, and I get that statement back if I
file that statement with my taxes, is that taking the
money back from God, or would that hinder me somehow
in my taxes? Or maybe I'm just not understanding how
(28:21):
money works.
S1 (28:22):
Yeah, well, I love this question, Veronica, because clearly you
want to honor the Lord with what you're managing, what
he's entrusted to you. And that's great. That's the right posture. Uh,
I would just say simply no. Taking a tax deduction
for your tithe is not taking anything back from God.
Here's why. When you give to your church, the gift
is already given to the Lord. That's what we see
(28:44):
in second Corinthians nine seven. I mean, it says pretty
plainly each one has must give what he has decided
in his heart, not reluctantly or under compulsion. For God
loves a cheerful giver. So when we give, we're giving
as unto the Lord. A tax deduction doesn't reduce or
reverse any of that generosity. It simply recognizes that under
(29:07):
the law that charitable giving serves the common good. So
you're not being paid back. You're being allowed to keep
a little bit more of your income so you can
steward it wisely. So think of a deduction as good stewardship,
not reclaiming your offering. And if the government allows you
to reduce your tax burden because you give to God's work, well,
(29:28):
you can joyfully receive that benefit and then redirect those resources,
those tax savings toward further generosity and caring for your
family or savings, whatever you choose. So I think, you know,
at the end of the day, when it comes to giving,
as Christ's followers, especially the way I read the New Testament,
your heart is what matters most. And the fact that
(29:49):
you're concerned about honoring God already, I think, shows a
beautiful posture of worship. And if anything, a deduction can
be another opportunity for you to just say, Lord, you've
given some of this back through tax savings. Now, how
can I use it in service to you for your kingdom?
Does that make sense?
S7 (30:08):
Thank you. Yes, thank you very much. It makes plenty sense.
S1 (30:11):
Okay, Veronica, I appreciate your call today. Lord bless you.
Call any time. We're going to take a quick break here.
When we come back, uh, Bob Dole will join us
and we'll get his take on this, uh, fed rate cut. Uh,
clearly the market liked it, but what does that mean
for the future? And perhaps even more than the rate cut,
what was it that the fed said about 2026 and
(30:34):
their posture toward additional rate cuts. Monetary policy. Inflation, the
job market. All of it. We'll get Bob's take on
that just around the corner. We'll also try to get
to a few more phone calls. I know Mary's calling
from Missouri, and she's concerned that the dollar is failing
and want to know if she should move to gold.
We'll tackle that. Stay with us. Well, the Federal Reserve
(31:03):
has spoken. We got another quarter point cut today after
the fed meeting. The all important fed comments will tell
you what they said about the economy, the job market,
more rate cuts in 2026. Straight ahead. Bob Dole is here.
Bob is CEO and CIO of Crossmark Global Investments. He's
our go to guy on the markets and the economy.
(31:24):
It's a good day for him to be here so
we can get his reaction to all this. Clearly the
market liked it. But before we talk about the fed
cuts while Bob is here, Mary had a question in Missouri.
I thought this would be a great one for Bob
to answer. Mary, you're on with Rob West and Bob Dole.
Go ahead.
S8 (31:40):
Okay. I keep hearing this. I've talked to my financial
advisor a couple of times, but he doesn't recommend doing it.
So I need to know the dollar is the dollar failing?
Do we need to invest some money in gold?
S1 (31:57):
Yeah. Great question Bob. What are your thoughts?
S9 (32:00):
Yeah. So the dollar has had some weakness this year.
Probably has some more weakness in the years to come,
but it's still the strongest currency in the world in
terms of being broad and deep. And therefore it's the
reserve currency of the world. So it doesn't go up
all the time. Uh, as we've established this year, I
think gold is a hedge against dollar weakness. It's a
(32:23):
better hedge against inflation. So having some gold in your portfolio,
I'm fine with that. Uh, in a limited way as
that hedge, uh, primarily against inflation. Secondarily the dollar. What
I would argue is if you think there's more dollar
weakness to come, think about supplementing your domestic, your US
stock positions with some international ones. Find a good mutual fund, uh,
(32:47):
with international stocks. Those stocks have done well because a
lot cheaper than the US. And there are many economies
around the world that are slowly improving.
S1 (32:56):
Yeah. I mean I think that's really well said Mary.
You know, just to summarize, I mean, what Bob is
saying is exactly right. I mean, you look in the
rear view mirror, despite our challenges, there really isn't a
close second in terms of a reserve currency and just
the size and breadth. And, uh, you know, uh, performance
of the US economy and despite our challenges, rising debt
(33:19):
and monetary and fiscal policy, uh, the US is still
the place to be. But, uh, to his point, you
talking to your advisor about do we have some international exposure?
You know, is the right thing. And precious metals. Let's
not get Overweighted, Bob, would you say? You know, somewhere
between five and max, 10% on gold?
S9 (33:37):
Exactly. A single digit percentage makes sense in this environment.
S1 (33:41):
Yeah. Mary, thanks for your call today. I hope that helps. Bob,
you know, when we're looking at these interest rates, obviously
the rate cut is important. The market was expecting it
and clearly liked what it saw. But what's perhaps more
important is what the fed says after they cut about
the forward looking, uh, thoughts. You know, give us a
summary of that.
S9 (34:01):
Yeah. As pretty much as expected they cut. But they
also said not so sure about going forward. They're going
to be, quote, data dependent as they always are. So
people looked at this as as the so-called hawkish cut
that is they cut. But they said, ah, be careful
about how many more we're going to do. Uh, but
(34:21):
they left enough room if there is economic weakness to
cut some more. And that's what the markets liked.
S1 (34:29):
Yeah. Uh, obviously for savers out there, they're hearing this
and they're saying, wait a minute. Those high yield savings
rates that I've become accustomed to are going to be
headed down. You know, could we settle in to something
you think you know, in the high threes, low fours
throughout next year, or do you think it's coming down
more than that.
S9 (34:47):
I think it will come down some rob but not
a whole lot. Um, we still have an inflation that is, um,
running closer to 3% than two. And that's going to
prevent the fed from cutting significantly unless we have a
lot more economic weakness, uh, than, than than the numbers
are showing now and the fed believes so. A little
(35:09):
more to come, but not a lot.
S1 (35:10):
Did they comment specifically on the economy or the job market?
S9 (35:14):
They did. Uh, they said the economy is doing okay. Um,
you know, it's not it's not going to win any awards,
but it's doing just fine. Thank you. In terms of jobs, um,
you know, they said the job market is is good,
but slowly weakening a bit. And that's among the reasons
the cut rates 25 today.
S1 (35:35):
One big beautiful bill kicks in next year. We locked
in the tax cuts. You know we've got deregulation. We've
also got some tariffs. Any comments just about President Trump's
policy which will be in full effect in 2026.
S9 (35:48):
It will. And all the things you just mentioned are
generally tailwinds for the economy. Um, individuals we pay in
lower tax rates, uh, corporations will have the ability to expense, um,
some of their capital moves, which is a positive. Um, uh,
we've got, uh, a number of things that provide further
(36:11):
tailwinds to the economy, which is another reason why the
Fed's got to be careful how much they think about
lowering rates.
S1 (36:18):
Yeah. Very good. Bob. Last question. What about mortgage rates?
Those who have been sitting on the sideline, you know,
perhaps this is the time to go ahead and make
that purchase if they're ready. Is that right?
S9 (36:29):
Yeah, I think that look, as interest rates come down, um,
mortgage rates come down too. Um, so a little bit
more decline in mortgage rates, but not a whole lot, uh,
barring a recession.
S1 (36:42):
Excellent, Bob. Thanks for your time, sir.
S9 (36:44):
Have a great week.
S1 (36:45):
All right. That's Bob Dole, he's CEO and CIO at
Crossmark Global Investments. You can learn more at Crossmark global.
All right. Back to the phones. Chicago, Illinois. D go ahead.
S6 (36:59):
Hi.
S1 (37:00):
Hi, there. How can I help you?
S10 (37:02):
Well, um, I am about 10 or 12 years from
retirement and I will retire with a pension. I own
a couple of properties, and I was wondering, um, how
I should start, um, preparing for my retirement. Um, should
I sell those properties and, um, kind of take the
(37:26):
proceeds and Invest in a condo or move into a,
you know, a senior community or 55 and older community or, um,
I would like to retire early if that was possible
at all. That would be great. But even with that,
(37:46):
if I wanted to do that. But what do you
suggest that I do as far as, um, I have
these two properties. One is probably has a market value
of about 270, and I owe $80,000 on it. Okay.
The other one has a market value of about close
(38:06):
to half a million. Um, so it's like 489 or
maybe 490 somewhere around there. But that one, um, I
purchased within the last five years. So of course I
owe about maybe um, by now two, maybe 2.99 on that.
S1 (38:23):
Yeah. Very good. Yeah. I mean, I think this really
comes down to cashflow, maintenance and lifestyle. As you approach retirement.
So with ten years to go, two properties in hand,
you know, clearly selling and downsizing can be a wise move,
but only if it strengthens your financial position. So I
think we're selling and downsizing makes sense is where, you know,
(38:46):
selling one or both properties eliminates mortgages, reduces taxes and insurance,
and frees up equity that you can invest for retirement. Uh,
you know, lower maintenance could make sense as well. I mean,
a condo, uh, or a 55 plus community often means,
you know, a lower upkeep, which is huge as you
(39:07):
move into retirement. Uh, you know, that that could be helpful.
It simplifies your finances. Owning two properties can not only
be expensive, but also unpredictable. So that creates some stability.
Fewer surprises get you out of the landlord business, which
has its own challenges. And you know, if you have
a pension plus lower Are expenses, you know, that can
(39:27):
really equal a stronger plan because you're pairing a steady
pension with lower living costs. And that could create a
very secure retirement picture, especially if you take this, you know,
the proceeds from these properties and invest it with an advisor,
you know, who could have a conservative portfolio that generates
some income, where you've got access to the capital, it's
(39:48):
no longer illiquid like it is in the real estate.
It's more liquid, but it's income generating and has some
potential for growth. I mean, I think the the you know,
on the flip side, when you might want to stay
put would be if the properties are generating significant rental
income or they're appreciating rapidly or you'd have a large
capital gains tax, um, you know, or if you plan
(40:11):
to retire in a different location, uh, entirely, um, you know,
with regard to the condo versus the 55 plus, the
condo is often cheaper. Uh, the 55 plus is going
to have more amenities, you know, in a built in
social setting, but the fees are undoubtedly, you know, going
to be higher. So that's just a lot of thoughts there.
(40:32):
But I'd be happy to entertain any follow up questions
you have?
S10 (40:36):
Um, no, I just wanted to give kind of a
general idea of how I should go about setting up,
setting myself up for retirement. Um, because again, I really
I would love to retire early. Um, but, you know, again,
it's it's a it's the cash flow. I want to
make sure that I have a strong cash flow, um,
(40:57):
for my years of retirement. And, I mean, other than
having these properties, I'm debt free. I don't have any debt. Um,
and so that that's it. I'm trying to.
S1 (41:09):
Yeah. And that's what's nice about selling is you get
rid of you reduce your living, you know, your lifestyle
spending and the debt service because those mortgages go away,
which just dramatically reduces your budget. And then this pension
is guaranteed income and then you take the proceeds, the
net profit after the taxes are paid and the realtors
(41:30):
fees and the mortgages are paid off and you invest it.
And that's just going to not only get rid of
all that debt service, but now it could throw off a,
you know, an additional monthly income that gets added to
your pension. And, you know, that feels like, uh, gives
you a lot of stability and less upkeep and work
with regard to just the, you know, the active, uh,
(41:51):
effort that goes into being a landlord and maintaining those properties.
So I think you're on to something there. I think
it really comes down to timing. I hope that helps.
Thanks for your call, D. We appreciate you being on
the program. Well, that's going to do it for us today, folks. Uh,
really delighted to have you along with us. Want to
say thanks to my team, Josh, on our phones today
to hear a Haynes producing today. Uh, Omar Mendoza, our engineer,
(42:12):
the amazing Taylor Standridge, uh, providing great research. He's our
production manager here at Finance Lives, a partnership between Moody
Radio and Faith five. We'll see you tomorrow. Bye bye.
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