April 2, 2025 • 42 mins
Scripture calls us to put God’s Kingdom first in every aspect of our lives—including our investments—trusting that He will provide and use our efforts to advance His purposes. On today's Faith & Finance Live, Will Lofland will join Rob West to explain about an investment strategy that is designed to support Kingdom causes. Then Rob will tackle your financial questions.
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Episode Transcript
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S1 (00:08):
But seek first the kingdom of God and His righteousness,
and all these things will be provided for you. Matthew 633.
I am Rob West. This verse calls us to put
God's kingdom first in every aspect of our lives, including
our investments, trusting that he will provide and use our
efforts to advance his purposes. Today, Will Loughlin joins us
(00:30):
to share how that's happening right now. And then it's
on to your calls at 800, 500, 25 7000. That's 800, 500, 25, 7000.
This is faith and finance. Live biblical wisdom for your
financial decisions. Well, our guest today is my friend Will Loughlin.
(00:51):
He's managing director of investments distribution at Guidestone, an underwriter
of this program. Will, great to have you back.
S2 (00:58):
Well thanks, Rob. I appreciate the opportunity to join you. And,
you know, we're thankful for the work that Faith fi does.
And we're really happy to work alongside y'all. Uh, especially
as Guidestone works to see all servants of Christ finish. Well,
I can't think of another organization that really embodies that
same philosophy the way Faith fi does.
S1 (01:17):
Well, I couldn't agree more. And, uh, Guidestone has been
a great partner for a long time, and we're continuing
to deepen that relationship. We'll talk about that a bit
more later in our program today. But, uh, you have
some really exciting things underway with your Kingdom Causes program. Uh,
some of our listeners may not be familiar, though, with
(01:37):
Guidestone financial resources. So why don't you begin, will, by
just sharing a bit about the services you provide for
people in ministry?
S2 (01:45):
Well thanks, Rob. Absolutely. So Guidestone itself is a ministry organization.
We are focused on serving other ministries, uh, in all
financial aspects of what they A seek to do in
their ministries. And so we primarily focus on financial solutions
for ministries like retirement and insurance solutions. We offer the
(02:07):
nation's largest Christian screened fund family, as well as wealth
management services for like minded Christians.
S1 (02:15):
Yeah. And so how does providing those services help advance
God's kingdom?
S2 (02:19):
So ministries, you know, when you think about their purpose
and they're trying to advance the kingdom in whatever way
their ministry is focused on, um, financial resilience and security
is really key to the people that serve those ministries
and then being able to fulfill their functions. And so
we look to come alongside them and serve them in
that capacity, uh, to remove some of those potential worries
(02:42):
or anxieties that might be there so that they can
truly focus on spreading the gospel. Um, the other area
that that I think about, um, with how Guidestone is
trying to advance the kingdom really comes through the Guidestone
fund's complex. Uh, you know, we think about the Lord
really asking us to honor him with all of our possessions.
You all talk about that concept of stewardship. That's right.
(03:05):
And and if we really are stewards and we're thinking
about managing those resources, we want to do it in
a God honoring way. And so that Christian lens is
what we're applying to the how in how we think
about investing. Uh, and that's through the Christian values screening,
but also through corporate engagement and impact investing.
S1 (03:23):
Yeah. And as you mentioned, you all are a leader
in this space. In fact, the largest of the fund
families offering values aligned investments for Christians. I know you
have a number of funds that anyone can invest in, Will,
and two of them are what you call impact funds.
I want to drill down on those a bit more.
What are the impact funds?
S2 (03:43):
Yeah, absolutely. So the impact funds were born out of
the concept just before 2020. Uh, the idea that we
were primarily doing the Christian values screening, and we were
doing the corporate engagement piece within the funds. But was
there an idea that we could do something more through
our investments? And that's where impact, uh, grew out of.
(04:04):
It was the idea that we could proactively invest in
either companies or, uh, causes or issues that provided a
unique benefit or impact. Um, and so when I think
about something like the the Impact Bond Fund, which is
one of those two strategies, you know, it's going through
and supporting unique things like infrastructure projects, whether that's things
(04:27):
like clean water infrastructure, uh, affordable housing projects. Uh, we
even invest in unique things like Christian focused senior living complexes, um,
all things that have some sort of unique underlying benefit
to the people or project that they're funding. And that
(04:48):
was really something that was important for us. If we could, uh,
to do something different.
S1 (04:52):
Well, I'm looking forward to continuing to unpack this because
there are limits to the impact that listed securities can have.
And that's where your Kingdom Causes program comes in. So
we're going to unpack that, talk about the ministries that
you're supporting through that and the work that's being done
in the name of Jesus. Will Laughlin here today. Wills,
managing director of investments distribution at Guidestone, an underwriter of
(05:16):
this program. Much more just around the corner. Stay with us. Hey,
great to have you with us today on Faith and
Finance Live. I'm Rob West, your host, with me today,
(05:36):
my friend Will Laughlin. He's managing director of investments distribution
at Guidestone, an underwriter of this program. Guidestone is a
leader in faith based investing and financial services. They've really pioneered,
in many ways the faith based investing space, and they
are the largest of the asset managers fund families offering
(05:58):
values aligned investments for Christians. And Will, we were talking
before the break about your impact funds and specifically the
Kingdom Causes program. Now I know you donate 20% of
the management fee revenue you take in from the impact funds,
and that's almost $400,000 now. So share with us a
(06:20):
bit about how you choose the ministries you support through
this initiative.
S2 (06:24):
Yeah, Rob. Well, the Kingdom Causes program is something that
at Guidestone were were very passionate about. The Kingdom Causes
program was born out of our impact funds. And with
that we have the commitment with the impact funds that
we donate 20% of our advisory revenue. But we do
have other ways that we fund the Kingdom causes programs.
(06:46):
So to date, since 2020, we've donated nearly three quarters
of $1 million through the Kingdom Causes program, and one
of the key elements with Kingdom Causes and how we
think about who we donate money to, was one of
the core pillars of our impact funds, which is the
sanctity of life and spreading the gospel. So those are
the two areas that we're focused on when we think
(07:08):
about ministries and where we're giving. So we look at
organizations that are local, we look at ones that are
national and ones that are international as well. When we
think about where we give.
S1 (07:19):
Yeah. So one of those examples of a local ministry,
because you all are in the Dallas area, would be
the the funding that you've provided to the Prestonwood Pregnancy Center,
which clearly aligns with that priority around the value of
human life. Why is this a priority for Guidestones giving?
S2 (07:37):
Well, uh, the sanctity of life is is one of
the most core beliefs of of Christians and the value
of each and every individual life. And when we thought
about the opportunity to work with Prestonwood, which is one
of the nation's largest churches. It was a church with
infrastructure and resources to be able to stand up a
really strong pregnancy center and serve women in need that
(08:01):
are out there trying to find real, honest care and
information to support them through their pregnancy and and Prestonwood
Pregnancy Center was a natural example of that. Um, to
go beyond that, though, we actually work on a national level.
One of the other organizations we support is the Psalm
139 project. That's a national organization that provides ultrasound machines,
(08:25):
but also, um, planning and, uh, really a variety of
sources to stand up pregnancy centers across the nation. And
so that's our opportunity to kind of reach beyond the
local level and at the national level, still try to
provide and grow those same types of great pregnancy centers.
S1 (08:44):
Mm. Yeah. And I know not only is Guidestone contributing 20%
of the Impact Fund's revenue to these ministries, but I
think it's also important to point out that anyone who
invests in those funds is also supporting them by way
of your participation in these impact funds. Now, I know
you're wanting to meet physical needs in the name of Jesus.
(09:05):
And one way you're doing that is through the organizations
send relief, and I'd love for you to share a
bit about that with our listeners.
S2 (09:13):
Yeah. So Send Relief is is a really cool opportunity.
It is a joint venture between the International Mission Board
and the North American Mission Board, and those are two
of the large legacy Southern Baptist mission sending organizations. So
they're really well established. They've got great footprints across North
America and the greater world. And what they do is
(09:34):
they look for specific projects, specific needs in markets where
they've served for a long time. And an example of
one of those was a medical mission Opportunity in Venezuela.
Venezuela has a lot of needs, largely occurring from the
government that they've had in place for a while. And
so there are resources. They're very short on pharmaceutical and
(09:58):
medical needs there. And so Send Relief went in and
provides medical services and projects. And they're ministering to those
people as they're going through and providing basic medical needs
for people in Venezuela. Um, and then other things like
entrepreneurial projects for widows in Africa. Um, helping people support themselves,
(10:20):
their children when they become widowed, but at the same
time evangelizing to these women that they're serving and educating
and evangelizing their children as well.
S1 (10:30):
Interesting. Well, I love this work, and I love some
of the projects that you're supporting that perhaps some of
our listeners may not know about, but there's a real
need for one of those that really caught my eye
was minnow. that's in the Christian entertainment category for kids.
Tell our listeners about that.
S2 (10:47):
Yeah. Well, you know, you think about the way people
consume entertainment and information today, and so much of it
is electronic. So much of it is streaming. And, you know,
as a parent myself, you know, I think about what
my kids have access to and good streaming services today.
They have gating for content. So a way for parents
to quasi control what their kids are getting. Um, but
(11:07):
even with age gating, you still wonder, what are my
kids actually consuming? And minnow is is out there trying
to meet this really good need of providing families, uh,
Christ centered content for children. You don't have to worry
about what your kids are consuming, and they're consuming good,
wholesome entertainment. So minnow is really, you know, if you
want to think about it in its most simple terms,
(11:28):
it's YouTube kids, but with Christian content. Uh, so they're
looking to provide a really great, excellent digital experience, really
good content, but fulfilling content and things that are also, um,
really strong and on message for the Lord.
S1 (11:44):
Yeah. Now, I know several of the ministries Guidestone supports
will are actively involved in gospel work. Spreading the gospel
to the ends of the earth. Uh, talk about a
few of those and how you selected them.
S2 (11:56):
Yeah. So prison fellowship and prison Seminaries Foundation, those are
two that I think are really critical. If we think
about what are we called to do if we care
about the Great Commission reaching people, creating disciples, you know,
where are there people in need? Uh, right. The prison
(12:17):
system in the United States is full of people that
are broken and lost, and there is the opportunity to
to minister to those people. They're not forgotten people. Uh,
they can be reached for the Lord. And so not
only can you make disciples through something like Prison Fellowship,
but Prison Seminary's foundation in particular is focused on training
(12:39):
inmates who have 15 plus year sentences that are going
to be in the prison system for a long time.
And it's done in partnership with Baylor University and their
seminary program, and it's providing a four year seminary education
to allow these individuals to become ministers in prisons and
(12:59):
reach people for the Lord through their time in the
prison system. And there are some really great not only
statistics about the conversions there, but ultimately how it can
bring down violence level in prisons and just the true
benefits of that.
S1 (13:17):
Hmm. Well, it, uh, folks may not have realized is
they can invest in such a way that not only
are they seeking an appropriate risk adjusted return for their portfolio,
but they're also supporting some incredible kingdom causes, not only
here in the States, but abroad. Well, we're just about
out of time, but how can our listeners learn more?
S2 (13:38):
Yeah, if they want to learn more about us there,
there are two really great places to do that. The
first is Guidestone. That's going to be the Ministry information
and then Guidestone funds.com to learn about the specific funds.
S1 (13:50):
Excellent. Well we so appreciate you and everything that Guidestone
is doing for faith based investing.
S2 (13:57):
Thanks, Rob I appreciate it.
S1 (13:58):
That's Will Laughlin with Guidestone Financial Resources, an underwriter of
this program. The website again Guidestone. That's Guidestone. All right.
Right after this break, it will be time for your
calls and questions. So call right now the number 800
525 7000. I'm Rob West and this is Faith and
(14:20):
finance live. We'll be right back.
S3 (14:29):
The opinions offered during this program represent the personal or
professional opinions of the participants, given for informational purposes only.
Any information provided is not intended to replace advice from
a financial, medical, legal or other professional who understands your
specific situation.
S1 (14:52):
Well, great to have you with us today on Faith
and Finance live. I'm Rob West, looking forward to taking
your calls and questions today. We've got lines open. We're
ready for you at 800 525 7000. That's 800 525 7000.
We'd love to dive into those questions today. Whatever you
have on your mind, whether it's giving, perhaps you're looking
(15:13):
for ways to give more wisely. Or maybe you want
to talk about just kind of giving in light of
biblical wisdom, how should we think about our giving and
the motivations behind it? Maybe it's your spending plan. You
find yourself really struggling to make ends meet, living below
your means. Let's talk about that. If it's long term investing,
we can tackle that. Or perhaps it's paying down some debt.
(15:34):
Whatever you've got going on in your financial life today,
you can call right now 800 525 7000. Our goal
to be encouraging to you, to take you into God's
Word and ultimately to direct you toward seeing God as
your ultimate treasure. Uh, today in the news this afternoon,
it's Liberation Day. That's at least what President Trump is
(15:55):
calling the sweeping tariffs that he is announcing at this
moment in the Rose garden. The president has called these
tariffs reciprocal. They'll be aimed at countries where the U.S.
has the largest trade deficits. This will include, among others,
South Korea, Brazil and India. And of course, the European Union.
Many of those countries have imposed high tariffs on American
(16:17):
goods for years. Of course, opponents of the policy might
be calling it Inflation Day, amid fears that tariffs will
increase prices on a wide array of items coming into
the U.S. and potentially be a drag on US exports
to other countries if they retaliate. Supporters of the president's plan, however,
say that any short term economic pain will be worth
(16:38):
it to try to achieve not just free trade, but
fair trade as well. Coming up on Friday, Jerry Bowyer
will stop by. We'll get his analysis on these reciprocal
tariffs as President Trump is bringing more clarity to that
even as we speak right now. The markets as they
looked and toward these actually responded positively. The Dow Jones
(17:02):
closed up more than 200 points, just more than one
half of 1%. The S&P 500 up a little better
than that at 0.6%. The Nasdaq up the most at
nearly 1%. So the market at least pointing higher as
we wait for the full understanding of this tariff rollout.
And obviously we'll have more analysis in the days ahead.
(17:24):
All right. Let's dive into those questions today. We're going
to begin in Spokane, Washington. Denise, we appreciate your call.
How can we help?
S4 (17:31):
Well, thank you so much for taking my call. Can
you hear me? Okay.
S1 (17:34):
Yes, ma'am, I sure can.
S4 (17:36):
Thank you. So, um, my husband and I are getting older,
like all of us are. And right now, we're in
a small home on 26 acre farm, about half of
which is actually timber. And we're looking at if we
tried to move, what would we do? And right now,
house prices are so high that our farm barely gets
(17:56):
us 40 to 60 year old house on less than
a quarter of an acre.
S1 (18:01):
Wow. Yeah.
S4 (18:02):
So, um, my husband's. The question is, do land prices
follow house prices? If the house price bubble were to
go down in the next couple of years? Does land
fall at the same rate or differently?
S1 (18:18):
Yeah. I mean.
S4 (18:19):
It's.
S1 (18:19):
A great question. Sure. And generally speaking, I would say yes,
because when we talk about, uh, housing prices, a property's
value is the sum of the land value and the
improvement value or or the building. So when people talk
about home prices falling, they're usually referring to the combined
market value. And kind of the most commonly referred to
(18:42):
index that measures. This is what's called the Case-Shiller Home
Price index or the median sales data. Now land prices
clearly are influenced by location specific demand. So that might
be proximity to jobs and schools or amenities. While the
structure's value would be more tied toward construction costs and
(19:03):
depreciation and maintenance. But typically during a housing downturn, both
will decline, although the dynamics would be different. So, for example,
during the 2008 financial crisis, home prices in the US
dropped sharply by about 33% nationally from peak to trough.
In overbuilt areas like Las Vegas or parts of Florida,
(19:25):
land values really plummeted because the supply outstripped the demand
and vacant lots lost value alongside homes. However, in the
dense areas like, you know, urban areas like San Francisco
or New York, land retained more relative value to the
structure because of the scarcity and the long term desirability
(19:47):
of those locations, even as the overall property prices fell. So,
you know, here's what I would say at the end
of the day is, I think, generally speaking, unless, you know,
you have land that's in a particularly desirable place overall.
We think about these two moving together, you know, up
or down. Um, the good news is home prices, to
(20:08):
your point, have done well. You know, we've had average
annual growth rates of, you know, over the last five years,
you know, 8 to 10% a year, which has been phenomenal.
The last ten years. It's been about, you know, 7
to 7.5% a year. And then 20 years, about 4
to 4.5%, which would be, you know, more typical. Most
(20:30):
economists aren't expecting a significant pullback in housing prices moving forward.
At least, you know, not in the near term. The
consensus would be around continued growth, even though perhaps it's
a slowing of the rate of increase versus any kind
of contraction. So I know that's a lot of information.
Is that helpful to you?
S4 (20:50):
Well, that's very helpful. And the fact that it doesn't
look like it's going to be there's going to be
a major correction like there was in 2008. That's good
to know too.
S1 (20:58):
Yeah, that's exactly right. I think we're going to see
a slowing. But the supply demand imbalance keeps the floor
solid because the reality is there's still a shortage of
homes in this country, even though some areas can get
overbuilt again, parts of Florida, maybe some of the pandemic
boom towns like Austin. But overall we still need more
(21:20):
homes in this country. We just don't have enough supply.
And that's always going to push prices up at the
end of the day. Supply and demand economics 101. It
drives markets. So hopefully that helps you. Denise we appreciate
you checking in with us today. Call back anytime. May
the Lord bless you. Folks we're going to take a
quick break. When we come back, more of your questions.
We've got lines open. You can call right now 800
(21:43):
525 7000. Stay with us. Thanks for joining us today
on Faith and finance live here on Moody Radio. I'm
Rob West. Delighted you're listening in today. We'd love for
you to get in on the conversation by calling 800
(22:05):
525 7000. Again, that's 800 525 7000. You know, there's
another way to engage with us here at Faith fi.
And it is really for those of you who listen
to this program regularly, perhaps you've found some benefit in
what we've been able to share. Maybe it's changed your
perspective on what it looks like to live as a
faithful steward, to hold God's resources loosely and align your
(22:28):
hearts with his, valuing him above everything in this world. Well,
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(22:52):
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(23:14):
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(23:36):
All right let's head back to the phones. We've got
some lines open. 800 525 7000. You can call right
now to Chattanooga. Hi, Sarah. Go ahead.
S5 (23:46):
Hi. Um, yes, I have a pretty stable, um, budget.
My question is, should I, um, do and I do
monthly donation to a charity, and I have been paying
extra on my principal. But my question is, should I
do those, uh, items before I build my emergency savings?
S1 (24:13):
Yeah, it's a great question. And, you know, you're talking
about the priority use of God's resources. And there's, you know,
competing priorities that we have. I mean, once we recognize
our role as stewards and we begin to think about
our values and our priorities, what will emerge is having
that that liquidity or that emergency reserve for the unexpected.
(24:34):
We see that affirmed in Scripture clearly were to be generous.
We should be givers. We should allow a portion of
what God entrusts to us to flow through us into
the local church and other causes that are on the
heart of God, even loving our neighbor. Those who might
be in a in a season of need. Uh. Beyond that,
we want to minimize the use of debt and eliminate
high interest credit card debt and consumer debt, and even
(24:57):
find our way toward paying off a mortgage eventually. And
so we have to wrestle through the priority order of
these things. Uh, first of all, I would say being
a generous giver right up off the top is key.
And the amount is really between you and the Lord.
That's of less concern to me. What's most of interest
(25:18):
to me is you beginning to establish that regular rhythm
of giving and generosity. And I heard you reference that.
And so I would say building that right in up front,
it kind of calibrates your hearts to the Lord's. And
I think it's that tangible demonstration of surrender and trust
in him as your provider. So I would say continue
doing that. And, you know, you work out the amount, uh,
(25:41):
you know, in, in prayer with the Lord in terms
of where you go from there. Um, what do you
have in your emergency fund today?
S5 (25:50):
Today I have about, um, 3000 in my emergency fund.
S1 (25:56):
Okay. And what are you spending on a monthly basis?
Roughly all your expenses.
S5 (26:01):
Okay. On a monthly basis, my expenses are like 2500.
S1 (26:07):
Okay, great. So you have a little more than one
month's expenses. That's excellent. On your way to 3 to
6 months, did you mention you have a little bit
of credit card debt though.
S5 (26:17):
I have 500 in credit card debt.
S1 (26:20):
Okay. And is that just monthly expenses that you'll pay off,
or are you carrying that balance month to month?
S5 (26:27):
Well, I'm able to pay it off with, um, because
my monthly income is about 4300 and my expenses monthly
are about 2500. So I can just pay it off.
S1 (26:47):
Okay. Yeah. Great. Now, where has the excess been going?
Because you've got quite a bit of surplus there. I mean, about,
you know, $1,800 a month.
S5 (26:57):
Um, the excess was going to, um, paying out credit
card debt and also, um, doing extra on my, uh, principal.
S6 (27:08):
On the mortgage.
S5 (27:09):
I spent some on the. Yeah. On the mortgage. Like,
I'll pay three extra principals at one time.
S6 (27:16):
Got it.
S5 (27:16):
After my regular monthly and then also a little bit for, um, like, uh,
when I a plane ticket for to my grandson's graduation.
S6 (27:27):
Just stuff.
S5 (27:28):
Like that.
S1 (27:29):
That makes sense. Sure. Well, a couple of thoughts here.
Number one is since you've it sounds like you've reigned
in your spending. And whatever led to that credit card
debt in the past is a thing of the past.
That's good. I'd go ahead and finish off that last 500.
No reason to pay the interest that you're likely paying
on that $500. So let's go ahead and pay that
off as step one. I would probably, if it were me,
(27:51):
go ahead and build up that emergency fund from one
month's worth of expenses to at least three. And so
maybe you set a goal of $7,500 and I'd probably
hold off on. Again, neither of these things are bad.
It's just, you know, we've got to make a choice.
I'd probably hold off on additional, um, you know, principal
payments on the mortgage until you get up to that
(28:13):
three months expenses, just so you've got something to fall
back on. If for some reason you're, you know, you
had an unexpected expense come out of left field, we
would rather you not have to go back into credit
card debt in order to cover that. And then if
you wanted to take the excess and divide and divide
it between additional emergency savings to get up to 6%,
(28:33):
and then take the other half and send it toward
the mortgage, you know, I would be completely fine with
that because I love the idea of you eventually being
debt free. So I think that would probably be my
path forward. Focus entirely on the credit card debt and
the emergency fund until you get up to three months
and then split the excess between the principal and the
mortgage and the emergency fund until you get to six months.
S5 (28:58):
Okay. Thank you.
S1 (28:59):
All right. You're welcome. We appreciate your call today. May
the Lord bless you. Uh, let's go to Michigan. Hi, Dean.
Go ahead. Sir.
S7 (29:06):
Yeah, Rob, thanks for taking my call. Sure. Got got
a got a question? Um, my wife and I and
another couple, uh, got together and we, uh, donated, uh,
$12,000 to our home church with the intention that we
would use this, uh, to, to be distributed for individuals
going on mission trips. And we were focusing on, uh,
(29:32):
kids between the ages of eighth grade and 25 going
on their first mission trip. We made up, uh, other
basic rules about, you know, being a Christ follower. Uh,
they're local and regular church attenders anyway. Uh, we've made
that donation, and then we, you know, passed those kind
of basic rules along to our deacons who have put
(29:55):
it into the the general fund. And then as people
would come in and fill out a form, we had
a form that they would fill out and we would say, hey,
we would like, uh, we'd like to give $1,000 to Rob.
He's gone on this mission trip. So anyway, we we
also want to stay anonymous. And, uh, you know, so it's, uh,
(30:16):
we're just. And it's become a little cumbersome because, uh,
the deacons are using the rules that we kind of
made up to go along, uh, to say. Yeah, well,
he went earlier on a mission trip, but we'd like,
you know, uh, we want to be able to just
give that money away through them. Obviously, they got it.
(30:37):
It's the church's money. So.
S1 (30:39):
Yeah. No, it makes total sense. I've got to take
a quick break. I want to hear the rest of
the question. I'll give you my thoughts on the other side. Dean.
Stay right there. We'll be right back. Thanks for joining
us today on Faith and Finance Live here on Moody Radio.
I'm Rob West. Uh, looking forward to taking your calls
and questions here in our final segment. We've got room
(31:01):
for you. Actually, some lines open right now. So if
you have a financial question today, this would be a
great time to call 800 525 7000. Again, that number
is 800 525 7000. I may be able to get
to as many more as three additional phone calls. When
you call right now 800 525 7000 with your financial questions.
(31:25):
Before the break, we were talking to Dean in Michigan. Uh,
Dean and a few others made a gift to their
church to be used for church mission trips, essentially a
designated gift where they could make more money available to
those who were going on mission trips. It's essentially a
a restricted or designated gift, and now they're wanting to
(31:47):
allow a little bit more flexibility on how the funds
are distributed. So, Dean, pick up where you left off. And, um,
you said that, you know, funds are going out, but
you'd like ultimately to be able to expand the use
of that money. Is that right?
S7 (32:02):
Well, it would it would stay within you know, the,
you know, the framework of our church membership. And also,
it would be just a matter of, uh, just previously
we had had a designated it for a mission trip
that we take twice a year to Guatemala. Well, as
I said before, we now have we now have a
(32:23):
connection with hurricane rescue in Tennessee. So we have a
group from our church leaving in a couple of weeks
that we would love to be able to, uh, donate
a couple thousand dollars for their work. That's going to
be done down there. So it's, you know, I guess
the question is, and we've we've given the money and
this was QCD money as well. So it went into
(32:45):
the church tax free on our behalf as a gift. Um, so,
you know, what restrictions should we have seen coming as
far as how the church distributes that money that we've
designated for missions?
S1 (32:59):
Yeah, it's a great question. So you do have the
ability as the donor or donors to perhaps ask the
church within kind of their policies and procedures, to broaden
the use of the funds of the designated gift. So
you'd go back to them and say, listen, we originally
said it needs to be given, you know, for these
(33:20):
types of trips. And we'd we'd like for you to
expand that. Where the problem comes in is if at
any point you're trying to direct as the donor, the
ultimate individual, that would receive the gift. So the IRS
wants you to have or for the nonprofit to maintain
a disinterested control over the funds. So the moment you
(33:43):
begin to decide as the donor who gets the scholarships,
that's going to be a problem. Um, so although you
could tweak the purposes of the funds, ultimately you need
to have other individuals, whether that's a selection committee or
the finance committee of the church or some sort of
scholarship committee. They need to be the ones picking the recipients,
(34:05):
not the donors, in order to stay compliant. And so
to the extent you want to be able to name individuals.
That really isn't going to work.
S7 (34:14):
Huh? Okay. Yeah. All right. So we need to, uh. Yeah.
Rethink that then. Obviously.
S1 (34:22):
I think so. And the goal would be to say, listen,
we want to get more people going, you know, to Guatemala,
and we're going to trust the church is going to
make that decision on who and how much receives that. Um,
or even you help to set the parameters on how
much per individual. But, you know, the moment you begin
to name the people that are ultimately going to get
the checks, the IRS is going to have a problem
(34:43):
with that. So, yeah, I think you need to perhaps
rethink just kind of what are we ultimately trying to
accomplish here? And if it's getting more people, uh, you know,
on the mission field, that's great. But from that point forward,
we're going to have to let the church make the call.
I hope that helps, though. Dean, we appreciate your call,
and I appreciate you trying to get more people involved
in missions. That's amazing. Uh. To Florida. Hi, Phyllis. How
(35:03):
can I help?
S8 (35:05):
Hi, there. Thank you so much for taking my call. Sure.
I hope you can hear me. Okay.
S1 (35:10):
I sure can.
S8 (35:12):
Um, I just got a question about annuities. Um, it's funny,
because every time I come home from work, I listen
to you constantly. And thank you so much for being
on the air. And, uh, you know, you're always saying annuities, annuities.
And then I come home and I tell my husband
he's like, no, no, no, no, no. So, um, we
talked to somebody yesterday and they talked to us about
an annuity. Um, boy, if I don't know if I'm
(35:35):
going to say this right, but, uh, it's locked into
some kind of, um, um, I guess it's called Athena,
and it's, um, uh, locked into some kind of, um, like,
care that if you need it for long term care type,
insurance type thing. Um, we sounded really interested in that,
and I just didn't know a whole lot about it,
(35:57):
and I just wondered, you know, being in our early 60s,
is it too late? And, um, maybe is it a
good idea? Is it not a good idea? Help me out.
S1 (36:07):
Yeah. Very good. Well, let me just back up and
clarify a little bit. I mean, we do talk about
annuities a lot here, mainly because we get a lot
of questions about them. But I'm pretty consistent in saying,
although I'm not someone who says avoid annuities at all costs,
I'm also quick to say they're really not my favorite tool,
and I generally don't recommend them for most people because
(36:31):
even though they have their place, they tend to have
high fees. They limit your liquidity, meaning once you commit
the money, it's hard to get it out early, which
just limits your options. They're complex. So they're, you know,
lots of fine print and, you know, they they are
tied to what are called sub accounts that fluctuate depending
on the type of annuity. And, you know, the fine
(36:52):
print is often, you know, not understood fully by the annuitant. Um, and,
you know, there's a loss of control. There's even inflation
risk because the annuity may not keep up with the
rising costs over time. Now, where they have a place
is for somebody who says, I just want to transfer
the risk away from the market, the stock market, to
(37:13):
an insurance company. I'm risk averse. These certainly do fit
that bill. Um, and you can get some tax deferred
growth and then ultimately some guaranteed income. But again, these
are not my first choice. Now, what you're talking about
essentially is a combination of an annuity that has long
term care features. And I think long term care is
(37:37):
something to think about, where, you know, you are able
to consider that your biggest risk in this season of
life is just the dramatic, rising costs of long term care.
And we know that 70% of Americans 65 and older
will need long term care for some amount of time,
usually 2 to 3 years, and it can run 10,000
(37:57):
a month if you need nursing care. And that's today's prices.
It's only going up from here. And so essentially an
annuity product with a rider for long term care would
kick in. If you need long term care and you
can't perform what they call the daily, you know, activities,
daily living activities, or you suffer a, a cognitive issue.
(38:19):
And then that rider could take the normal income that
the annuity was providing and double your income payments or
provide a a higher withdrawal amount. Um, I don't know
about that particular one you mentioned. Um, but if you
were interested in the various options for long term care,
I would visit with a certified Kingdom advisor there in
Florida to look at all of your options, because you
(38:41):
may be better off buying a straight, long term care
insurance policy. You could look at a whole life policy
with a long term care option, or you could look
at an annuity with a long term care option and
depending on your situation, 1st May be better than another.
So I know that's a lot of information, Phyllis, but
is that helpful at all right.
S8 (39:00):
Yeah, yeah it is. Um, I would like to, uh,
kind of research that a little bit more. I mean,
both of us are really healthy. Um, you know, his
mom is 87, and she's in an independent living. So, um,
and she's got the money to be able to pay
for that herself. But I don't think that could ever
happen for us. And, you know, it just we you
(39:22):
never know. So, um, I just want to be prepared. So.
S1 (39:26):
Yeah. No, I certainly get that. And I think that's
wise to be thinking that way. Phyllis. And to your point,
I mean, you've got longevity on your side. You're in
good health. You know, you may decide you want to
essentially self-insure, but, you know, obviously, the extent to which
you want to offset that risk and you've got the
cash flow to do it, you know, it may be
(39:47):
worth looking at a long term care insurance policy. They
are expensive. And, you know, you've got to be able
to not only absorb the premium today, but you've got
to be able to absorb the future premium increases, which
has been a consistent theme with these policies. So I
think that's why you need to do this in the
context of some really well thought out comprehensive financial planning.
(40:07):
And then perhaps that financial planner could bring in a
long term care insurance agent who really specializes in that area.
So here's what I'd recommend. Go to our website, Faith Philly.com.
Click find a professional. Connect with a certified Kingdom advisor
there in Florida and just ask about, you know, some
planning around how you will pay for long term care
(40:29):
insurance should you need it down the road. And be
sure to check back with us if you have further questions.
May the Lord bless you. Uh. Let's see. We're going
to go to Illinois. Kathleen, you're next up on the program.
Go ahead.
S9 (40:40):
Um, anyway, thanks for your program. Um, I have a
stock in my portfolio that is, is like, it's like
I have like a between 40 and 47% loss and
it's got an F rating and it's a large part
of my portfolio. So it's like holding it is not
a good idea. I want to sell it, but I
(41:02):
want to know what to do with it after I
do that. I have it in Schwab, so I don't
know if it's like a fund that I could put
it in. That is better. You know, I don't know
because I've got a lot sitting in there.
S1 (41:16):
Yeah. Well, first of all, Kathleen, let me just affirm
what you're saying. And that is, you know, regardless of
how that stock is done and I understand it's done
very poorly. Uh, you have what's called a highly concentrated position.
And that's not advisable because we're taking an inordinate amount
of risk. We have too much riding on one company. Um,
and so I like the fact that you're thinking about
(41:37):
repositioning your portfolio, but in doing so, you really need
some wise counsel in that. Because first of all, you
want to make sure you take full tax advantage of
the loss. And then secondly, you want to think about
where is the best place for you to be invested
moving forward based on your goals and objectives and risk
tolerance and age and income needs? And I think that's
(42:00):
really where an advisor will shine. Unfortunately, I can't give
you those specific recommendations over the radio. We don't do that.
But I wouldn't want to even if I could, because
I don't know all the other pieces of your financial life.
And that's where an advisor will come in. So I'm
going to encourage you to check with the Certified Kingdom
advisor there in Illinois who can look at your overall
(42:20):
situation and then perhaps actually help you manage that money.
You can find us on our website at giphy.com. Thanks
for your call today, Kathleen. Again, folks, if you want
to check us out and learn how you can become
a faith by partner, it'd be a blessing to us.
Go to faith.com and click give. Big thanks to Amy, Jim, Dan,
and Anthony. Faith and Finance Live is a partnership between
(42:41):
Moody Radio and Faith fi. Come back and join us tomorrow.
We'll see you then. Bye bye.
But seek first the kingdom of God and His righteousness,
and all these things will be provided for you. Matthew 633.
I am Rob West. This verse calls us to put
God's kingdom first in every aspect of our lives, including
our investments, trusting that he will provide and use our
efforts to advance his purposes. Today, Will Loughlin joins us
(00:30):
to share how that's happening right now. And then it's
on to your calls at 800, 500, 25 7000. That's 800, 500, 25, 7000.
This is faith and finance. Live biblical wisdom for your
financial decisions. Well, our guest today is my friend Will Loughlin.
(00:51):
He's managing director of investments distribution at Guidestone, an underwriter
of this program. Will, great to have you back.
S2 (00:58):
Well thanks, Rob. I appreciate the opportunity to join you. And,
you know, we're thankful for the work that Faith fi does.
And we're really happy to work alongside y'all. Uh, especially
as Guidestone works to see all servants of Christ finish. Well,
I can't think of another organization that really embodies that
same philosophy the way Faith fi does.
S1 (01:17):
Well, I couldn't agree more. And, uh, Guidestone has been
a great partner for a long time, and we're continuing
to deepen that relationship. We'll talk about that a bit
more later in our program today. But, uh, you have
some really exciting things underway with your Kingdom Causes program. Uh,
some of our listeners may not be familiar, though, with
(01:37):
Guidestone financial resources. So why don't you begin, will, by
just sharing a bit about the services you provide for
people in ministry?
S2 (01:45):
Well thanks, Rob. Absolutely. So Guidestone itself is a ministry organization.
We are focused on serving other ministries, uh, in all
financial aspects of what they A seek to do in
their ministries. And so we primarily focus on financial solutions
for ministries like retirement and insurance solutions. We offer the
(02:07):
nation's largest Christian screened fund family, as well as wealth
management services for like minded Christians.
S1 (02:15):
Yeah. And so how does providing those services help advance
God's kingdom?
S2 (02:19):
So ministries, you know, when you think about their purpose
and they're trying to advance the kingdom in whatever way
their ministry is focused on, um, financial resilience and security
is really key to the people that serve those ministries
and then being able to fulfill their functions. And so
we look to come alongside them and serve them in
that capacity, uh, to remove some of those potential worries
(02:42):
or anxieties that might be there so that they can
truly focus on spreading the gospel. Um, the other area
that that I think about, um, with how Guidestone is
trying to advance the kingdom really comes through the Guidestone
fund's complex. Uh, you know, we think about the Lord
really asking us to honor him with all of our possessions.
You all talk about that concept of stewardship. That's right.
(03:05):
And and if we really are stewards and we're thinking
about managing those resources, we want to do it in
a God honoring way. And so that Christian lens is
what we're applying to the how in how we think
about investing. Uh, and that's through the Christian values screening,
but also through corporate engagement and impact investing.
S1 (03:23):
Yeah. And as you mentioned, you all are a leader
in this space. In fact, the largest of the fund
families offering values aligned investments for Christians. I know you
have a number of funds that anyone can invest in, Will,
and two of them are what you call impact funds.
I want to drill down on those a bit more.
What are the impact funds?
S2 (03:43):
Yeah, absolutely. So the impact funds were born out of
the concept just before 2020. Uh, the idea that we
were primarily doing the Christian values screening, and we were
doing the corporate engagement piece within the funds. But was
there an idea that we could do something more through
our investments? And that's where impact, uh, grew out of.
(04:04):
It was the idea that we could proactively invest in
either companies or, uh, causes or issues that provided a
unique benefit or impact. Um, and so when I think
about something like the the Impact Bond Fund, which is
one of those two strategies, you know, it's going through
and supporting unique things like infrastructure projects, whether that's things
(04:27):
like clean water infrastructure, uh, affordable housing projects. Uh, we
even invest in unique things like Christian focused senior living complexes, um,
all things that have some sort of unique underlying benefit
to the people or project that they're funding. And that
(04:48):
was really something that was important for us. If we could, uh,
to do something different.
S1 (04:52):
Well, I'm looking forward to continuing to unpack this because
there are limits to the impact that listed securities can have.
And that's where your Kingdom Causes program comes in. So
we're going to unpack that, talk about the ministries that
you're supporting through that and the work that's being done
in the name of Jesus. Will Laughlin here today. Wills,
managing director of investments distribution at Guidestone, an underwriter of
(05:16):
this program. Much more just around the corner. Stay with us. Hey,
great to have you with us today on Faith and
Finance Live. I'm Rob West, your host, with me today,
(05:36):
my friend Will Laughlin. He's managing director of investments distribution
at Guidestone, an underwriter of this program. Guidestone is a
leader in faith based investing and financial services. They've really pioneered,
in many ways the faith based investing space, and they
are the largest of the asset managers fund families offering
(05:58):
values aligned investments for Christians. And Will, we were talking
before the break about your impact funds and specifically the
Kingdom Causes program. Now I know you donate 20% of
the management fee revenue you take in from the impact funds,
and that's almost $400,000 now. So share with us a
(06:20):
bit about how you choose the ministries you support through
this initiative.
S2 (06:24):
Yeah, Rob. Well, the Kingdom Causes program is something that
at Guidestone were were very passionate about. The Kingdom Causes
program was born out of our impact funds. And with
that we have the commitment with the impact funds that
we donate 20% of our advisory revenue. But we do
have other ways that we fund the Kingdom causes programs.
(06:46):
So to date, since 2020, we've donated nearly three quarters
of $1 million through the Kingdom Causes program, and one
of the key elements with Kingdom Causes and how we
think about who we donate money to, was one of
the core pillars of our impact funds, which is the
sanctity of life and spreading the gospel. So those are
the two areas that we're focused on when we think
(07:08):
about ministries and where we're giving. So we look at
organizations that are local, we look at ones that are
national and ones that are international as well. When we
think about where we give.
S1 (07:19):
Yeah. So one of those examples of a local ministry,
because you all are in the Dallas area, would be
the the funding that you've provided to the Prestonwood Pregnancy Center,
which clearly aligns with that priority around the value of
human life. Why is this a priority for Guidestones giving?
S2 (07:37):
Well, uh, the sanctity of life is is one of
the most core beliefs of of Christians and the value
of each and every individual life. And when we thought
about the opportunity to work with Prestonwood, which is one
of the nation's largest churches. It was a church with
infrastructure and resources to be able to stand up a
really strong pregnancy center and serve women in need that
(08:01):
are out there trying to find real, honest care and
information to support them through their pregnancy and and Prestonwood
Pregnancy Center was a natural example of that. Um, to
go beyond that, though, we actually work on a national level.
One of the other organizations we support is the Psalm
139 project. That's a national organization that provides ultrasound machines,
(08:25):
but also, um, planning and, uh, really a variety of
sources to stand up pregnancy centers across the nation. And
so that's our opportunity to kind of reach beyond the
local level and at the national level, still try to
provide and grow those same types of great pregnancy centers.
S1 (08:44):
Mm. Yeah. And I know not only is Guidestone contributing 20%
of the Impact Fund's revenue to these ministries, but I
think it's also important to point out that anyone who
invests in those funds is also supporting them by way
of your participation in these impact funds. Now, I know
you're wanting to meet physical needs in the name of Jesus.
(09:05):
And one way you're doing that is through the organizations
send relief, and I'd love for you to share a
bit about that with our listeners.
S2 (09:13):
Yeah. So Send Relief is is a really cool opportunity.
It is a joint venture between the International Mission Board
and the North American Mission Board, and those are two
of the large legacy Southern Baptist mission sending organizations. So
they're really well established. They've got great footprints across North
America and the greater world. And what they do is
(09:34):
they look for specific projects, specific needs in markets where
they've served for a long time. And an example of
one of those was a medical mission Opportunity in Venezuela.
Venezuela has a lot of needs, largely occurring from the
government that they've had in place for a while. And
so there are resources. They're very short on pharmaceutical and
(09:58):
medical needs there. And so Send Relief went in and
provides medical services and projects. And they're ministering to those
people as they're going through and providing basic medical needs
for people in Venezuela. Um, and then other things like
entrepreneurial projects for widows in Africa. Um, helping people support themselves,
(10:20):
their children when they become widowed, but at the same
time evangelizing to these women that they're serving and educating
and evangelizing their children as well.
S1 (10:30):
Interesting. Well, I love this work, and I love some
of the projects that you're supporting that perhaps some of
our listeners may not know about, but there's a real
need for one of those that really caught my eye
was minnow. that's in the Christian entertainment category for kids.
Tell our listeners about that.
S2 (10:47):
Yeah. Well, you know, you think about the way people
consume entertainment and information today, and so much of it
is electronic. So much of it is streaming. And, you know,
as a parent myself, you know, I think about what
my kids have access to and good streaming services today.
They have gating for content. So a way for parents
to quasi control what their kids are getting. Um, but
(11:07):
even with age gating, you still wonder, what are my
kids actually consuming? And minnow is is out there trying
to meet this really good need of providing families, uh,
Christ centered content for children. You don't have to worry
about what your kids are consuming, and they're consuming good,
wholesome entertainment. So minnow is really, you know, if you
want to think about it in its most simple terms,
(11:28):
it's YouTube kids, but with Christian content. Uh, so they're
looking to provide a really great, excellent digital experience, really
good content, but fulfilling content and things that are also, um,
really strong and on message for the Lord.
S1 (11:44):
Yeah. Now, I know several of the ministries Guidestone supports
will are actively involved in gospel work. Spreading the gospel
to the ends of the earth. Uh, talk about a
few of those and how you selected them.
S2 (11:56):
Yeah. So prison fellowship and prison Seminaries Foundation, those are
two that I think are really critical. If we think
about what are we called to do if we care
about the Great Commission reaching people, creating disciples, you know,
where are there people in need? Uh, right. The prison
(12:17):
system in the United States is full of people that
are broken and lost, and there is the opportunity to
to minister to those people. They're not forgotten people. Uh,
they can be reached for the Lord. And so not
only can you make disciples through something like Prison Fellowship,
but Prison Seminary's foundation in particular is focused on training
(12:39):
inmates who have 15 plus year sentences that are going
to be in the prison system for a long time.
And it's done in partnership with Baylor University and their
seminary program, and it's providing a four year seminary education
to allow these individuals to become ministers in prisons and
(12:59):
reach people for the Lord through their time in the
prison system. And there are some really great not only
statistics about the conversions there, but ultimately how it can
bring down violence level in prisons and just the true
benefits of that.
S1 (13:17):
Hmm. Well, it, uh, folks may not have realized is
they can invest in such a way that not only
are they seeking an appropriate risk adjusted return for their portfolio,
but they're also supporting some incredible kingdom causes, not only
here in the States, but abroad. Well, we're just about
out of time, but how can our listeners learn more?
S2 (13:38):
Yeah, if they want to learn more about us there,
there are two really great places to do that. The
first is Guidestone. That's going to be the Ministry information
and then Guidestone funds.com to learn about the specific funds.
S1 (13:50):
Excellent. Well we so appreciate you and everything that Guidestone
is doing for faith based investing.
S2 (13:57):
Thanks, Rob I appreciate it.
S1 (13:58):
That's Will Laughlin with Guidestone Financial Resources, an underwriter of
this program. The website again Guidestone. That's Guidestone. All right.
Right after this break, it will be time for your
calls and questions. So call right now the number 800
525 7000. I'm Rob West and this is Faith and
(14:20):
finance live. We'll be right back.
S3 (14:29):
The opinions offered during this program represent the personal or
professional opinions of the participants, given for informational purposes only.
Any information provided is not intended to replace advice from
a financial, medical, legal or other professional who understands your
specific situation.
S1 (14:52):
Well, great to have you with us today on Faith
and Finance live. I'm Rob West, looking forward to taking
your calls and questions today. We've got lines open. We're
ready for you at 800 525 7000. That's 800 525 7000.
We'd love to dive into those questions today. Whatever you
have on your mind, whether it's giving, perhaps you're looking
(15:13):
for ways to give more wisely. Or maybe you want
to talk about just kind of giving in light of
biblical wisdom, how should we think about our giving and
the motivations behind it? Maybe it's your spending plan. You
find yourself really struggling to make ends meet, living below
your means. Let's talk about that. If it's long term investing,
we can tackle that. Or perhaps it's paying down some debt.
(15:34):
Whatever you've got going on in your financial life today,
you can call right now 800 525 7000. Our goal
to be encouraging to you, to take you into God's
Word and ultimately to direct you toward seeing God as
your ultimate treasure. Uh, today in the news this afternoon,
it's Liberation Day. That's at least what President Trump is
(15:55):
calling the sweeping tariffs that he is announcing at this
moment in the Rose garden. The president has called these
tariffs reciprocal. They'll be aimed at countries where the U.S.
has the largest trade deficits. This will include, among others,
South Korea, Brazil and India. And of course, the European Union.
Many of those countries have imposed high tariffs on American
(16:17):
goods for years. Of course, opponents of the policy might
be calling it Inflation Day, amid fears that tariffs will
increase prices on a wide array of items coming into
the U.S. and potentially be a drag on US exports
to other countries if they retaliate. Supporters of the president's plan, however,
say that any short term economic pain will be worth
(16:38):
it to try to achieve not just free trade, but
fair trade as well. Coming up on Friday, Jerry Bowyer
will stop by. We'll get his analysis on these reciprocal
tariffs as President Trump is bringing more clarity to that
even as we speak right now. The markets as they
looked and toward these actually responded positively. The Dow Jones
(17:02):
closed up more than 200 points, just more than one
half of 1%. The S&P 500 up a little better
than that at 0.6%. The Nasdaq up the most at
nearly 1%. So the market at least pointing higher as
we wait for the full understanding of this tariff rollout.
And obviously we'll have more analysis in the days ahead.
(17:24):
All right. Let's dive into those questions today. We're going
to begin in Spokane, Washington. Denise, we appreciate your call.
How can we help?
S4 (17:31):
Well, thank you so much for taking my call. Can
you hear me? Okay.
S1 (17:34):
Yes, ma'am, I sure can.
S4 (17:36):
Thank you. So, um, my husband and I are getting older,
like all of us are. And right now, we're in
a small home on 26 acre farm, about half of
which is actually timber. And we're looking at if we
tried to move, what would we do? And right now,
house prices are so high that our farm barely gets
(17:56):
us 40 to 60 year old house on less than
a quarter of an acre.
S1 (18:01):
Wow. Yeah.
S4 (18:02):
So, um, my husband's. The question is, do land prices
follow house prices? If the house price bubble were to
go down in the next couple of years? Does land
fall at the same rate or differently?
S1 (18:18):
Yeah. I mean.
S4 (18:19):
It's.
S1 (18:19):
A great question. Sure. And generally speaking, I would say yes,
because when we talk about, uh, housing prices, a property's
value is the sum of the land value and the
improvement value or or the building. So when people talk
about home prices falling, they're usually referring to the combined
market value. And kind of the most commonly referred to
(18:42):
index that measures. This is what's called the Case-Shiller Home
Price index or the median sales data. Now land prices
clearly are influenced by location specific demand. So that might
be proximity to jobs and schools or amenities. While the
structure's value would be more tied toward construction costs and
(19:03):
depreciation and maintenance. But typically during a housing downturn, both
will decline, although the dynamics would be different. So, for example,
during the 2008 financial crisis, home prices in the US
dropped sharply by about 33% nationally from peak to trough.
In overbuilt areas like Las Vegas or parts of Florida,
(19:25):
land values really plummeted because the supply outstripped the demand
and vacant lots lost value alongside homes. However, in the
dense areas like, you know, urban areas like San Francisco
or New York, land retained more relative value to the
structure because of the scarcity and the long term desirability
(19:47):
of those locations, even as the overall property prices fell. So,
you know, here's what I would say at the end
of the day is, I think, generally speaking, unless, you know,
you have land that's in a particularly desirable place overall.
We think about these two moving together, you know, up
or down. Um, the good news is home prices, to
(20:08):
your point, have done well. You know, we've had average
annual growth rates of, you know, over the last five years,
you know, 8 to 10% a year, which has been phenomenal.
The last ten years. It's been about, you know, 7
to 7.5% a year. And then 20 years, about 4
to 4.5%, which would be, you know, more typical. Most
(20:30):
economists aren't expecting a significant pullback in housing prices moving forward.
At least, you know, not in the near term. The
consensus would be around continued growth, even though perhaps it's
a slowing of the rate of increase versus any kind
of contraction. So I know that's a lot of information.
Is that helpful to you?
S4 (20:50):
Well, that's very helpful. And the fact that it doesn't
look like it's going to be there's going to be
a major correction like there was in 2008. That's good
to know too.
S1 (20:58):
Yeah, that's exactly right. I think we're going to see
a slowing. But the supply demand imbalance keeps the floor
solid because the reality is there's still a shortage of
homes in this country, even though some areas can get
overbuilt again, parts of Florida, maybe some of the pandemic
boom towns like Austin. But overall we still need more
(21:20):
homes in this country. We just don't have enough supply.
And that's always going to push prices up at the
end of the day. Supply and demand economics 101. It
drives markets. So hopefully that helps you. Denise we appreciate
you checking in with us today. Call back anytime. May
the Lord bless you. Folks we're going to take a
quick break. When we come back, more of your questions.
We've got lines open. You can call right now 800
(21:43):
525 7000. Stay with us. Thanks for joining us today
on Faith and finance live here on Moody Radio. I'm
Rob West. Delighted you're listening in today. We'd love for
you to get in on the conversation by calling 800
(22:05):
525 7000. Again, that's 800 525 7000. You know, there's
another way to engage with us here at Faith fi.
And it is really for those of you who listen
to this program regularly, perhaps you've found some benefit in
what we've been able to share. Maybe it's changed your
perspective on what it looks like to live as a
faithful steward, to hold God's resources loosely and align your
(22:28):
hearts with his, valuing him above everything in this world. Well,
partners are those that come alongside the ministry to help
us reach more people and to support our work. Faithful
is listener supported, and our partner program is those who
support the ministry at $35 a month or more. And
as our way of saying thank you, we send you
four copies for issues over the year of our magazine,
(22:52):
Faithful Steward. And anytime we release a study or a devotional,
you receive that pre-release as well. We're also going to
be rolling in our app into that as well. You'll
have a Pro subscription to the app as a faithful partner,
and so we're so delighted for you to be able
to join us in that way and support our work.
And it's a great time, because the next issue of
(23:14):
Faithful Steward is due out in May alongside our brand
new study called Wisdom Over Wealth 12 lessons on money
from the Book of Ecclesiastes. If you'd like to become
a partner. It's quick and easy. At our website, just
go to faith. Dot com and click give there at
the top of the page. That's faith. Dot com and
click give and we'd love to welcome you on board.
(23:36):
All right let's head back to the phones. We've got
some lines open. 800 525 7000. You can call right
now to Chattanooga. Hi, Sarah. Go ahead.
S5 (23:46):
Hi. Um, yes, I have a pretty stable, um, budget.
My question is, should I, um, do and I do
monthly donation to a charity, and I have been paying
extra on my principal. But my question is, should I
do those, uh, items before I build my emergency savings?
S1 (24:13):
Yeah, it's a great question. And, you know, you're talking
about the priority use of God's resources. And there's, you know,
competing priorities that we have. I mean, once we recognize
our role as stewards and we begin to think about
our values and our priorities, what will emerge is having
that that liquidity or that emergency reserve for the unexpected.
(24:34):
We see that affirmed in Scripture clearly were to be generous.
We should be givers. We should allow a portion of
what God entrusts to us to flow through us into
the local church and other causes that are on the
heart of God, even loving our neighbor. Those who might
be in a in a season of need. Uh. Beyond that,
we want to minimize the use of debt and eliminate
high interest credit card debt and consumer debt, and even
(24:57):
find our way toward paying off a mortgage eventually. And
so we have to wrestle through the priority order of
these things. Uh, first of all, I would say being
a generous giver right up off the top is key.
And the amount is really between you and the Lord.
That's of less concern to me. What's most of interest
(25:18):
to me is you beginning to establish that regular rhythm
of giving and generosity. And I heard you reference that.
And so I would say building that right in up front,
it kind of calibrates your hearts to the Lord's. And
I think it's that tangible demonstration of surrender and trust
in him as your provider. So I would say continue
doing that. And, you know, you work out the amount, uh,
(25:41):
you know, in, in prayer with the Lord in terms
of where you go from there. Um, what do you
have in your emergency fund today?
S5 (25:50):
Today I have about, um, 3000 in my emergency fund.
S1 (25:56):
Okay. And what are you spending on a monthly basis?
Roughly all your expenses.
S5 (26:01):
Okay. On a monthly basis, my expenses are like 2500.
S1 (26:07):
Okay, great. So you have a little more than one
month's expenses. That's excellent. On your way to 3 to
6 months, did you mention you have a little bit
of credit card debt though.
S5 (26:17):
I have 500 in credit card debt.
S1 (26:20):
Okay. And is that just monthly expenses that you'll pay off,
or are you carrying that balance month to month?
S5 (26:27):
Well, I'm able to pay it off with, um, because
my monthly income is about 4300 and my expenses monthly
are about 2500. So I can just pay it off.
S1 (26:47):
Okay. Yeah. Great. Now, where has the excess been going?
Because you've got quite a bit of surplus there. I mean, about,
you know, $1,800 a month.
S5 (26:57):
Um, the excess was going to, um, paying out credit
card debt and also, um, doing extra on my, uh, principal.
S6 (27:08):
On the mortgage.
S5 (27:09):
I spent some on the. Yeah. On the mortgage. Like,
I'll pay three extra principals at one time.
S6 (27:16):
Got it.
S5 (27:16):
After my regular monthly and then also a little bit for, um, like, uh,
when I a plane ticket for to my grandson's graduation.
S6 (27:27):
Just stuff.
S5 (27:28):
Like that.
S1 (27:29):
That makes sense. Sure. Well, a couple of thoughts here.
Number one is since you've it sounds like you've reigned
in your spending. And whatever led to that credit card
debt in the past is a thing of the past.
That's good. I'd go ahead and finish off that last 500.
No reason to pay the interest that you're likely paying
on that $500. So let's go ahead and pay that
off as step one. I would probably, if it were me,
(27:51):
go ahead and build up that emergency fund from one
month's worth of expenses to at least three. And so
maybe you set a goal of $7,500 and I'd probably
hold off on. Again, neither of these things are bad.
It's just, you know, we've got to make a choice.
I'd probably hold off on additional, um, you know, principal
payments on the mortgage until you get up to that
(28:13):
three months expenses, just so you've got something to fall
back on. If for some reason you're, you know, you
had an unexpected expense come out of left field, we
would rather you not have to go back into credit
card debt in order to cover that. And then if
you wanted to take the excess and divide and divide
it between additional emergency savings to get up to 6%,
(28:33):
and then take the other half and send it toward
the mortgage, you know, I would be completely fine with
that because I love the idea of you eventually being
debt free. So I think that would probably be my
path forward. Focus entirely on the credit card debt and
the emergency fund until you get up to three months
and then split the excess between the principal and the
mortgage and the emergency fund until you get to six months.
S5 (28:58):
Okay. Thank you.
S1 (28:59):
All right. You're welcome. We appreciate your call today. May
the Lord bless you. Uh, let's go to Michigan. Hi, Dean.
Go ahead. Sir.
S7 (29:06):
Yeah, Rob, thanks for taking my call. Sure. Got got
a got a question? Um, my wife and I and
another couple, uh, got together and we, uh, donated, uh,
$12,000 to our home church with the intention that we
would use this, uh, to, to be distributed for individuals
going on mission trips. And we were focusing on, uh,
(29:32):
kids between the ages of eighth grade and 25 going
on their first mission trip. We made up, uh, other
basic rules about, you know, being a Christ follower. Uh,
they're local and regular church attenders anyway. Uh, we've made
that donation, and then we, you know, passed those kind
of basic rules along to our deacons who have put
(29:55):
it into the the general fund. And then as people
would come in and fill out a form, we had
a form that they would fill out and we would say, hey,
we would like, uh, we'd like to give $1,000 to Rob.
He's gone on this mission trip. So anyway, we we
also want to stay anonymous. And, uh, you know, so it's, uh,
(30:16):
we're just. And it's become a little cumbersome because, uh,
the deacons are using the rules that we kind of
made up to go along, uh, to say. Yeah, well,
he went earlier on a mission trip, but we'd like,
you know, uh, we want to be able to just
give that money away through them. Obviously, they got it.
(30:37):
It's the church's money. So.
S1 (30:39):
Yeah. No, it makes total sense. I've got to take
a quick break. I want to hear the rest of
the question. I'll give you my thoughts on the other side. Dean.
Stay right there. We'll be right back. Thanks for joining
us today on Faith and Finance Live here on Moody Radio.
I'm Rob West. Uh, looking forward to taking your calls
and questions here in our final segment. We've got room
(31:01):
for you. Actually, some lines open right now. So if
you have a financial question today, this would be a
great time to call 800 525 7000. Again, that number
is 800 525 7000. I may be able to get
to as many more as three additional phone calls. When
you call right now 800 525 7000 with your financial questions.
(31:25):
Before the break, we were talking to Dean in Michigan. Uh,
Dean and a few others made a gift to their
church to be used for church mission trips, essentially a
designated gift where they could make more money available to
those who were going on mission trips. It's essentially a
a restricted or designated gift, and now they're wanting to
(31:47):
allow a little bit more flexibility on how the funds
are distributed. So, Dean, pick up where you left off. And, um,
you said that, you know, funds are going out, but
you'd like ultimately to be able to expand the use
of that money. Is that right?
S7 (32:02):
Well, it would it would stay within you know, the,
you know, the framework of our church membership. And also,
it would be just a matter of, uh, just previously
we had had a designated it for a mission trip
that we take twice a year to Guatemala. Well, as
I said before, we now have we now have a
(32:23):
connection with hurricane rescue in Tennessee. So we have a
group from our church leaving in a couple of weeks
that we would love to be able to, uh, donate
a couple thousand dollars for their work. That's going to
be done down there. So it's, you know, I guess
the question is, and we've we've given the money and
this was QCD money as well. So it went into
(32:45):
the church tax free on our behalf as a gift. Um, so,
you know, what restrictions should we have seen coming as
far as how the church distributes that money that we've
designated for missions?
S1 (32:59):
Yeah, it's a great question. So you do have the
ability as the donor or donors to perhaps ask the
church within kind of their policies and procedures, to broaden
the use of the funds of the designated gift. So
you'd go back to them and say, listen, we originally
said it needs to be given, you know, for these
(33:20):
types of trips. And we'd we'd like for you to
expand that. Where the problem comes in is if at
any point you're trying to direct as the donor, the
ultimate individual, that would receive the gift. So the IRS
wants you to have or for the nonprofit to maintain
a disinterested control over the funds. So the moment you
(33:43):
begin to decide as the donor who gets the scholarships,
that's going to be a problem. Um, so although you
could tweak the purposes of the funds, ultimately you need
to have other individuals, whether that's a selection committee or
the finance committee of the church or some sort of
scholarship committee. They need to be the ones picking the recipients,
(34:05):
not the donors, in order to stay compliant. And so
to the extent you want to be able to name individuals.
That really isn't going to work.
S7 (34:14):
Huh? Okay. Yeah. All right. So we need to, uh. Yeah.
Rethink that then. Obviously.
S1 (34:22):
I think so. And the goal would be to say, listen,
we want to get more people going, you know, to Guatemala,
and we're going to trust the church is going to
make that decision on who and how much receives that. Um,
or even you help to set the parameters on how
much per individual. But, you know, the moment you begin
to name the people that are ultimately going to get
the checks, the IRS is going to have a problem
(34:43):
with that. So, yeah, I think you need to perhaps
rethink just kind of what are we ultimately trying to
accomplish here? And if it's getting more people, uh, you know,
on the mission field, that's great. But from that point forward,
we're going to have to let the church make the call.
I hope that helps, though. Dean, we appreciate your call,
and I appreciate you trying to get more people involved
in missions. That's amazing. Uh. To Florida. Hi, Phyllis. How
(35:03):
can I help?
S8 (35:05):
Hi, there. Thank you so much for taking my call. Sure.
I hope you can hear me. Okay.
S1 (35:10):
I sure can.
S8 (35:12):
Um, I just got a question about annuities. Um, it's funny,
because every time I come home from work, I listen
to you constantly. And thank you so much for being
on the air. And, uh, you know, you're always saying annuities, annuities.
And then I come home and I tell my husband
he's like, no, no, no, no, no. So, um, we
talked to somebody yesterday and they talked to us about
an annuity. Um, boy, if I don't know if I'm
(35:35):
going to say this right, but, uh, it's locked into
some kind of, um, um, I guess it's called Athena,
and it's, um, uh, locked into some kind of, um, like,
care that if you need it for long term care type,
insurance type thing. Um, we sounded really interested in that,
and I just didn't know a whole lot about it,
(35:57):
and I just wondered, you know, being in our early 60s,
is it too late? And, um, maybe is it a
good idea? Is it not a good idea? Help me out.
S1 (36:07):
Yeah. Very good. Well, let me just back up and
clarify a little bit. I mean, we do talk about
annuities a lot here, mainly because we get a lot
of questions about them. But I'm pretty consistent in saying,
although I'm not someone who says avoid annuities at all costs,
I'm also quick to say they're really not my favorite tool,
and I generally don't recommend them for most people because
(36:31):
even though they have their place, they tend to have
high fees. They limit your liquidity, meaning once you commit
the money, it's hard to get it out early, which
just limits your options. They're complex. So they're, you know,
lots of fine print and, you know, they they are
tied to what are called sub accounts that fluctuate depending
on the type of annuity. And, you know, the fine
(36:52):
print is often, you know, not understood fully by the annuitant. Um, and,
you know, there's a loss of control. There's even inflation
risk because the annuity may not keep up with the
rising costs over time. Now, where they have a place
is for somebody who says, I just want to transfer
the risk away from the market, the stock market, to
(37:13):
an insurance company. I'm risk averse. These certainly do fit
that bill. Um, and you can get some tax deferred
growth and then ultimately some guaranteed income. But again, these
are not my first choice. Now, what you're talking about
essentially is a combination of an annuity that has long
term care features. And I think long term care is
(37:37):
something to think about, where, you know, you are able
to consider that your biggest risk in this season of
life is just the dramatic, rising costs of long term care.
And we know that 70% of Americans 65 and older
will need long term care for some amount of time,
usually 2 to 3 years, and it can run 10,000
(37:57):
a month if you need nursing care. And that's today's prices.
It's only going up from here. And so essentially an
annuity product with a rider for long term care would
kick in. If you need long term care and you
can't perform what they call the daily, you know, activities,
daily living activities, or you suffer a, a cognitive issue.
(38:19):
And then that rider could take the normal income that
the annuity was providing and double your income payments or
provide a a higher withdrawal amount. Um, I don't know
about that particular one you mentioned. Um, but if you
were interested in the various options for long term care,
I would visit with a certified Kingdom advisor there in
Florida to look at all of your options, because you
(38:41):
may be better off buying a straight, long term care
insurance policy. You could look at a whole life policy
with a long term care option, or you could look
at an annuity with a long term care option and
depending on your situation, 1st May be better than another.
So I know that's a lot of information, Phyllis, but
is that helpful at all right.
S8 (39:00):
Yeah, yeah it is. Um, I would like to, uh,
kind of research that a little bit more. I mean,
both of us are really healthy. Um, you know, his
mom is 87, and she's in an independent living. So, um,
and she's got the money to be able to pay
for that herself. But I don't think that could ever
happen for us. And, you know, it just we you
(39:22):
never know. So, um, I just want to be prepared. So.
S1 (39:26):
Yeah. No, I certainly get that. And I think that's
wise to be thinking that way. Phyllis. And to your point,
I mean, you've got longevity on your side. You're in
good health. You know, you may decide you want to
essentially self-insure, but, you know, obviously, the extent to which
you want to offset that risk and you've got the
cash flow to do it, you know, it may be
(39:47):
worth looking at a long term care insurance policy. They
are expensive. And, you know, you've got to be able
to not only absorb the premium today, but you've got
to be able to absorb the future premium increases, which
has been a consistent theme with these policies. So I
think that's why you need to do this in the
context of some really well thought out comprehensive financial planning.
(40:07):
And then perhaps that financial planner could bring in a
long term care insurance agent who really specializes in that area.
So here's what I'd recommend. Go to our website, Faith Philly.com.
Click find a professional. Connect with a certified Kingdom advisor
there in Florida and just ask about, you know, some
planning around how you will pay for long term care
(40:29):
insurance should you need it down the road. And be
sure to check back with us if you have further questions.
May the Lord bless you. Uh. Let's see. We're going
to go to Illinois. Kathleen, you're next up on the program.
Go ahead.
S9 (40:40):
Um, anyway, thanks for your program. Um, I have a
stock in my portfolio that is, is like, it's like
I have like a between 40 and 47% loss and
it's got an F rating and it's a large part
of my portfolio. So it's like holding it is not
a good idea. I want to sell it, but I
(41:02):
want to know what to do with it after I
do that. I have it in Schwab, so I don't
know if it's like a fund that I could put
it in. That is better. You know, I don't know
because I've got a lot sitting in there.
S1 (41:16):
Yeah. Well, first of all, Kathleen, let me just affirm
what you're saying. And that is, you know, regardless of
how that stock is done and I understand it's done
very poorly. Uh, you have what's called a highly concentrated position.
And that's not advisable because we're taking an inordinate amount
of risk. We have too much riding on one company. Um,
and so I like the fact that you're thinking about
(41:37):
repositioning your portfolio, but in doing so, you really need
some wise counsel in that. Because first of all, you
want to make sure you take full tax advantage of
the loss. And then secondly, you want to think about
where is the best place for you to be invested
moving forward based on your goals and objectives and risk
tolerance and age and income needs? And I think that's
(42:00):
really where an advisor will shine. Unfortunately, I can't give
you those specific recommendations over the radio. We don't do that.
But I wouldn't want to even if I could, because
I don't know all the other pieces of your financial life.
And that's where an advisor will come in. So I'm
going to encourage you to check with the Certified Kingdom
advisor there in Illinois who can look at your overall
(42:20):
situation and then perhaps actually help you manage that money.
You can find us on our website at giphy.com. Thanks
for your call today, Kathleen. Again, folks, if you want
to check us out and learn how you can become
a faith by partner, it'd be a blessing to us.
Go to faith.com and click give. Big thanks to Amy, Jim, Dan,
and Anthony. Faith and Finance Live is a partnership between
(42:41):
Moody Radio and Faith fi. Come back and join us tomorrow.
We'll see you then. Bye bye.
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