May 19, 2025 • 42 mins
Some exciting things are happening that will give you more ways to help those who Scripture calls “the least of these” in God’s Kingdom. On today's Faith & Finance Live, Brian Holtz will join Rob West to share details about how we can all have the greatest impact in helping those in need. Then Rob will answer your financial questions.
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Episode Transcript
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S1 (00:08):
The King will reply, truly I tell you, whatever you
did for the least of these brothers and sisters of mine,
you did for me. Matthew 2540. Hi, I'm Rob West.
Some exciting things are happening that will give you more
ways to help the least of these in God's kingdom.
Brian Holtz joins us today with details about how we
can all have the greatest impact in helping those in need.
(00:32):
And then we'll take your phone calls at 800, 500,
25 7000. This is faith and finance. Live biblical wisdom
for your financial journey. Well, it's great to have Brian
Holtz with us again. Brian is the CEO of Compass
Financial Ministry. He's a great friend and partner. And Brian,
great to have you back.
S2 (00:52):
It's my pleasure. Rob.
S1 (00:54):
When you were on the show a few months back, Brian,
you introduced a powerful new resource, a small group video
study called Making Ends Meet. Created to help struggling families
move toward financial stability. You also shared some insights into
the real challenges these families are facing. It's been a while,
so could you remind us of what compass set out
(01:14):
to accomplish with this project and how you approach the problem?
S2 (01:18):
Yeah, we and other ministries have generally focused on middle
and upper income levels, largely because we're all a little
puzzled when we work with someone who truly doesn't have
the financial margin they need. Not just that they're prioritizing poorly,
but that they just don't have the income to meet
their basic expenses. But the team at compass felt God
pushing us to address this, so we partnered with several
(01:40):
organizations who specialize in this area of helping struggling families,
and we learned what unique issues we needed to address
from a biblical perspective.
S1 (01:49):
Well, I'm so glad you did. This is such a
vital conversation, so how can we truly help those in need?
Is it as simple as giving money, or is there
a more effective, perhaps lasting way to serve them well?
S2 (02:01):
That certainly is the question. And during the project we
learned some things that were both surprising and some things
that were not surprising at all. To begin, I'll plant
my flag firmly on what doesn't create lasting change, and
that's just giving money to poor people and poor communities. Now,
that doesn't mean you shouldn't do it. In fact, the
passage you opened with today encourages us to provide physically
(02:22):
for the poor. It just means we shouldn't expect deep
life transformation as a result of only financial assistance. It
may provide relief, but it will almost always be temporary.
Study after study, both from faith based and secular research,
continues to disprove the idea that simply injecting money into
poverty solves the problem, or even provides any lasting change
(02:44):
at all.
S1 (02:44):
Yeah, so clearly we've uncovered what doesn't work here, but
what are some better ways to respond?
S2 (02:51):
Better option is actually quite obvious. You provide not only
financial assistance, but also relational assistance along with it. Think
about it this way. Jesus didn't just go around helping
people out of a jam and then leaving. He would
invite them to follow him to have their lives changed
at a deeper level, far beyond physical relief. When we
invest relationally in people, the change is more impactful and
(03:15):
longer lasting.
S1 (03:17):
Yeah. You're right. I mean, when you put it like that,
it does seem pretty clear. By walking alongside them on
the journey to stability. You're really engaging in discipleship, aren't you?
S2 (03:27):
Absolutely. Because you've stepped up financially. You have stronger relational credibility.
And because you have stronger relational credibility, you're able to
help them better use the financial gift, not as a
mandate of I'll only give you money if. But from
a heart of truly wanting what's best for them.
S1 (03:45):
Well, that's powerful, but I'm guessing there's a reason we
don't turn to that right away.
S2 (03:49):
There is. One of the biggest reasons is that poor
communities are extremely interdependent like we see in the church
of acts. These communities share their resources and belongings, and
it's their community's culture to care for one another. That,
of course, is a great thing. But when someone in
that community has the opportunity to get out of poverty,
it actually carries with it a lot of anxiety. Think
(04:11):
about it this way if all of a sudden I
have money and my friends still don't. Will they accept
me anymore if I lose my community, where will I
fit in? These are real issues and if we're trying
to help someone navigate through them, we've got to be
committed with our time and prayers for the long run.
S1 (04:27):
Yeah, that makes sense, Brian. All right, we're about out
of time. But before we go, how can listeners learn more.
S2 (04:32):
About the making ends meet folks who are already investing
in their communities and easy to follow plan? Visit us
at Compass Financial. Org to learn more.
S1 (04:43):
Folks, this is such an important study. It can help
you serve those in your community that are in this
place of need. It's called making ends meet. The study
is available at Compass Financial. Org. That's Compass Financial ministry. Brian,
thanks for your time today.
S2 (05:02):
Thanks for having me, Rob.
S1 (05:03):
We've got to take a quick break, but much more
just around the corner. If you have a question today,
call right now. 800 525 7000. That's 800, 525, 7000.
I'm Rob West and this is Faith in finance live.
We'll be right back.
S3 (05:31):
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 (05:56):
Thanks for joining us today on Faith in Finance live
I'm Rob West. Glad to be back in the studio today.
Last week I was off on vacation. It was the
only week of the summer that all six of us,
Julie and I and our four kids were going to
be available to travel together. It's a busy summer. We
have kids that are growing up. I've got one that
(06:16):
just graduated high school, one in college, two still in
high school. So the four of them all going different directions.
So we were able to get away and go visit
some family down in South Florida. But great to be back.
Always enjoy time away, but enjoy coming back to the
the work that God has called me to. I love
what I do every day, love serving you and coming
(06:36):
alongside you in your journey to be a wise and
faithful steward of God's resources. So I'm sure you've got
some questions today. I'd love to hear them. If there's
anything on your mind, financially speaking, now's the time to call.
We've got lines open, but they will fill quickly. So call.
Right now 800 525 7000 with your financial questions today
again that number 800 525 7000. Our team is standing by.
(07:02):
We'll dive into those questions here in just a moment.
Also a little later Bob doll stops by. The market
was able to squeak out a up day just barely,
though the S&P 500 up less than one tenth of 1%,
shrugging off the US credit downgrade. We'll get Bob's thoughts
(07:25):
on that moody downgrade. Uh, straight ahead, uh, in the
final segment today. But, uh, we'll dive into your questions
here in just a moment. In the news today, a
new report by the US Department of Health and Human
Services reveals that taking a more hands on approach to
long term care planning can make a huge difference when
it comes to costs. Here's what experts recommend. First, start early.
(07:49):
You won't be surprised to hear that it's never too
soon to begin planning. Talk to your family about long
term care needs and finances before the situation becomes urgent. Second,
consider family help. Think about who and your family might
help with care. Could they offer financial support as well?
Start those conversations now. Make your home ready. That's number three.
(08:10):
If you want to stay in your home, now is
the time to make sure it's set up for the future.
Small adjustments. We're talking about removing stairs or widening doorways.
Those can make a huge difference. Next, prepare financially. Look
into long term care insurance. Having a plan in place
will help to keep you from scrambling later on. By
the way, it's a good idea to get that long
(08:31):
term care insurance policy if you are going to get
one in your 50s, certainly before 65. That will help
to keep the premiums lower. Keep in mind, you know,
there's about 5 or 6 major players in this space.
There was a lot more in the early days. It's
kind of been reduced to a few key players that
are committed to long term care in the insurance space.
(08:53):
You're going to want to shop around, you know, depending
on your health status. Some companies look more favorably on
certain medical conditions than others. That's why an independent life
insurance or excuse me, long term care insurance agent will
be key to help you sort that out. Determine the
policy that's the best for you. Now keep in mind
these policies are not inexpensive, so you need to make
(09:15):
sure it fits in your budget, but you need to
make sure it fits today, but also be able to
absorb future premium increases. They can increase not on an
individual basis, but on an aggregate basis. And they have
dramatically because, well, the cost of health care and medical
care is rising dramatically. And so these policies are getting
(09:38):
more expensive. Here's the key though. 70% of 65 year
olds and older will need long term care at some
point in their lives, usually between 18 months and three years.
Nursing care if you need full nursing care, it could
run over $100,000 a year. Easy. That's probably your biggest
risk in terms of eroding the assets that you've accumulated
(10:00):
during your working years. So considering long term care insurance,
I think makes a lot of sense. Again, it's got
to be able to fit into the budget. But if
you've got assets somewhere between 200,000 and 2 million, which
is obviously where a lot of people are, I think
it's worth looking at. You certainly don't want to be
in a situation where you have to spend everything down
and then rely on a medicaid approved facility, unless you
(10:21):
absolutely have to. So certainly worth looking into, but something
just to consider as you're planning for that season of life.
All right. Let's dive into your questions today. Again the
number is 800 525 7000. You can call right now.
We're going to begin in Saint Louis today. Hi Michael.
Go ahead sir.
S4 (10:41):
Thank you. Uh, so kind of a two part question
on mortgages. Uh, the first one, uh, what exactly should
you try and look at to compare mortgages besides the
annual percentage rate? And then, uh, the, uh, what what
is there an average cost, uh, for, uh, origination fees
(11:04):
and for closing costs? How how do you judge what
what is right with that?
S1 (11:09):
Yeah. It's great question. Uh, so first of all, uh,
you know, beyond the rates and obviously that would be key.
You'd want to check those origination and closing costs. That
would be a second big one. Uh, the Apr is
going to include the total cost. And so that will
be an important consideration. You can look at the April,
or you can look directly at those costs and determine
(11:33):
what percent they are of the mortgage. Um, you'll of
course want to consider the various loan terms, the lender's reputation.
I would just do a quick search on them on
a site like Bankrate. You'd want to consider the various
loan options, of course, and incentives like cash back. I
would say always get three bids. You know, the average
(11:54):
person for this, what is the largest transaction for most
people in their lives? Often we'll just go with one lender.
In terms of quoting it, I would say getting three
to compare, you know, would be key. So those would
be the primary issues. You'd be looking at fees, Apr,
loan terms, lender reputation and then, you know, consider the
(12:17):
the various loan options in terms of the the average cost.
I would say, you know, expect somewhere between a half
a percent and 1% for origination. So that's 1500 to
3000 on a $300,000 loan. And that would roll into
what would often be 3 to 5% in terms of
total closing costs. So those would be kind of the
(12:39):
general ranges if you're kind of way outside of that
on either of those, then I would say that would
be a red flag. Is that helpful though?
S4 (12:48):
Yeah. So you're saying five total including the origination fees.
S1 (12:52):
That's right.
S4 (12:53):
Yeah. Was I okay?
S1 (12:55):
Okay. Exactly right. Yep. So you're talking about a $300,000 loan.
You know, you're looking at it could run you upwards
of 15 grand.
S4 (13:04):
Okay. No, that's that's. I'm getting bids this time around. And, uh,
so I was trying to make sure I'm comparing and
looking for, you know, who is close to being where
they need to be versus their way out of range.
Very helpful.
S1 (13:20):
Absolutely. Our friends at Movement Mortgage could be a great
option for you. At least one in the mix. You
could just go to movement.com to learn more. They're a
top ten lender, uh, owned and run by believers. Uh,
top ten, meaning in the top ten largest in the
United States and cover the entire country, but, uh. Glad
to hear you're doing your homework on this, Michael. That'll
(13:41):
pay off. And, uh, hopefully that's giving you a few
things to think about today. Thanks for being on the program, sir.
May the Lord bless you. Well, we're going to take
a break here. When we come back in our next segment,
we'll dive into some more phone calls. Ken is calling
from Kansas City. We'll jump into his question and then
talk to Brian again. Coming up a little later in
the broadcast, Bob doll stops by. We'll get Bob to
(14:02):
weigh in on the US credit downgrade that came from
Moody's late last week on Friday. Much more ahead on
Faith and finance live here on Moody Radio. I'm Rob West.
Our goal here today to be an encouragement to you,
to help you be a wise and faithful steward of
God's resources. Stay with us. Thanks for joining us today
(14:29):
on Faith and finance. Live. I'm Rob West back in
the studio today live taking your calls and questions. We've
got lines open. We're ready for you at 800 525 7000.
That's 800 525 7000. You can call right now. Let's
head to Kansas City. Ken, thanks for your patience, sir.
Go ahead.
S5 (14:49):
Hey, thanks so much for taking my call. I really
enjoy your show. My question is really somewhat in general. Uh,
but I've got a friend who is almost ready to retire,
who is a union electrician. And when the tariffs came
in and took a tank, he had a really big
complaint that that $100,000 he lost would never be replaced.
(15:12):
And I said, well, sure it will. You know, once
the markets go back up, whether it's this year or
next year, whatever, that, you'll get that back. And I
just didn't know how to explain that to him. But
I'm I'm right with that ain't I?
S1 (15:26):
No. Totally. Yeah. Exactly. Right. So you know, here's the reality.
I mean, a few thoughts. One is the money he
quote lost in the recent market dip due to the
tariffs is absolutely not gone forever. I think you need
to distinguish between what are called unrealized losses versus realized losses. Remember,
an unrealized loss is an investment dropping in value on paper.
(15:51):
But until you sell, you sell. No actual loss is
locked in. So that's the first reality. Secondly, uh, historically
markets recover from corrections like this. So for example, the
S&P 500 took about four months. Uh, you know, on
average to bounce back from a 10 to 20% correction
(16:12):
over time and even bear markets where you've got a
20 plus percent drop on average, recover in 1 to
2 years. And that would be true of 2008, the
financial crisis as well as the 2020 Covid crash. So
I would say the recent tariff driven plunge, Lunge. Uh,
you know, saw the S&P 500, uh, drop 10.5% about.
(16:37):
But it's already showing signs of stabilizing. We've recovered, uh,
you know, most of that. And again, on average, uh,
you know, it takes about four months to bounce back
from a correction like we saw. Uh, the other silver
lining is assuming he's still making contributions. Um, you know,
you're able to buy when the market pulls back. Let's
(16:59):
say you're making a a consistent, uh, you know, contribution
to a retirement plan. You're able to buy more shares
at lower prices for the same monthly, uh, contribution coming
out of the paycheck. And that sets you up for
bigger gains when the market rebounds. Because, again, if you're buying,
(17:20):
you know, you're putting in the same amount out of
every paycheck. But stocks are cheaper because the market has
pulled back. You're buying more shares of the same mutual
funds or, you know, whatever he's buying. And then as
that market recovers, he stands to benefit. So, you know,
I think, uh, you know, those are the kinds of
things I would be talking to him about. Does that
(17:40):
make sense?
S5 (17:42):
Yeah. And you've answered my question perfectly as to what
I kind of thought it would be. Uh, and this
just helps support my, uh, when I go back and
chat with him again as to the direction he's that
he's going to be. Okay.
S1 (17:56):
Yeah. Exactly. Right. And the other piece I would throw
out there not to throw too much at you, but,
you know, keep in mind, even once he hits retirement,
let's say at 65, maybe it's not. But if it is,
I mean, he still needs to take a long term perspective.
So even though you get more conservative as you get
close to retirement, I would say the typical retiree, you know,
(18:18):
should still have somewhere between 40 and 50% in stocks. Uh,
because remember, you know, we need to take I mean,
if he lives, you know, into his 90s, he's still
got three decades for this money to grow or to
at the very least, you know, have a portion of
it that's growing in stocks to offset perhaps what he's
(18:38):
pulling out to supplement his income. So even at retirement,
we're still able to take a long term perspective. And
I think that's really key to being able to appreciate
that time is on his side. He doesn't need to
get anxious. He doesn't need to be too aggressive. But
the market will recover in time.
S5 (18:55):
I certainly agree with you and you've answered it perfectly.
I really appreciate your time.
S1 (19:01):
Hey, everybody needs a brother in law like you. Ken.
We appreciate your call today. Thanks for walking alongside your
brother in law. We appreciate it. Let's go to Ohio. Hey, Brian.
How can I help?
S6 (19:11):
Hey, how's it going? It's going good. Good.
S1 (19:14):
Thanks.
S6 (19:14):
Um, yeah, I got a question about, um, rolling, uh,
traditional IRA into a Roth IRA. It was a rollover
account from a previous job, And um, so I've got
currently I've got 55,000 in the Roth and 37,000 in
(19:35):
the traditional.
S1 (19:37):
Okay. So say that breakdown again. What do you what
do you have right now?
S6 (19:42):
55,000 in the Roth IRA and 37,000 in the traditional.
S1 (19:47):
Okay. Yeah. Uh. Got it. And so you've got, in
addition to that, another, uh, account that would be coming
into the traditional or are you looking to, to move
the 37?
S6 (20:02):
Um, we put in I put in $200 a month
into the, into the Roth, um, and, um, so it
would just be an extra amount of that 37 into
the Roth.
S1 (20:18):
Got it.
S6 (20:19):
Yeah. A good idea?
S1 (20:20):
Yeah. You know, how far out are you from retirement
at this point?
S6 (20:25):
Um, 30 years.
S1 (20:27):
Okay. Yeah. You got some time on your side? Yeah.
I mean, I like the Roth a lot, especially at
your age. Um, because, you know, the real benefit of
the Roth IRA is you get that tax free growth,
and you're never going to pay any tax on the
gains when you pull it out in retirement. You also
don't have the required minimum. So if you were to
over accumulate or you find you don't need some of this,
(20:49):
you could pass it, you know, on to the kids or,
you know, to heirs and you know, they wouldn't pay
any tax on it as it comes out either, which
is just a huge benefit. They also don't require you
to take anything out in a required minimum distribution with Roth,
whereas they do with the the traditional. So if you
were a little closer to retirement, I'd say keep both buckets.
(21:10):
But with you being that far away, I'd say if
you have the cash flow to absorb the tax bite,
which all that 37,000 or whatever portion you convert would
be added to your taxable income in the year of
the conversion, so you need to be ready to pay
that without taking anything out of the account. So you
need to have the surplus to do that. Then I
(21:31):
would say, you know, getting close to 100 K in
Roths to grow for the future makes a lot of sense.
So I like that a lot. Let's do this. Brian, um,
I know you have a second part to your question.
I've got to take a break. So stay right there
and we'll tackle it on the other side. We'll be
right back. Great to have you with us today on
(21:56):
Faith in finance live I'm Rob West. We're taking your
calls and questions today. Lines are open 800 525 7000.
Again that's 800 525 7000. You can call right now.
Before the break, we were talking to Brian. He was
wondering about, uh, rolling some traditional IRA money into an
existing Roth IRA. And he's got 30 years on his side.
(22:17):
And so if he's got the money to do it. Brian,
I was saying that's not a bad idea. Any follow
up on that? And I know you had a second question,
so go ahead.
S6 (22:26):
Yeah, I had talked with our tax CPA and he
was staying and looked at the numbers and thought we
could transfer like 3500 a year, um, from the traditional
into the Roth without any tax implications there.
S1 (22:42):
Uh, okay. Yeah. So he's saying, uh, you would have
gotten a refund, but we can, you know, basically chew
up the refund that you have and come out even.
Is that right?
S6 (22:51):
Yeah.
S1 (22:52):
Yeah, yeah. Okay. Yeah, I like that plan.
S6 (22:56):
All right. And then I have a taxable investment account
with about 160,000 in it. And, uh, we've we've lived
frugally up to this point, but with three kids, young kids,
we'd like to take them on vacations. And I was
wondering if it would be suggestible to use that account for,
for some of those trips.
S1 (23:15):
Yeah, I think so. I mean, money is a good
gift from God. We have to be careful about the
seduction of wealth, but it doesn't change the fact that
it was a good gift. Or it is, and that's
to share and to provide. But I think also to enjoy.
And I think, uh, God smiles when we use his
resources in the context of a plan, living within our means,
you know, holding it loosely, giving it generously. But when
(23:37):
we use it to enjoy and build relationships and especially
memories with your family, I love that. And I think
that's a perfect use of God's money. Uh, where to
pull that from? I think, you know, if you can
pull it from certainly an after tax account, that makes
a lot of sense. Uh, would it be coming from
a cash portion of that account, like a money market,
or would you have to sell some investments?
S6 (24:00):
We'd probably have to sell some investments. Um, depending on
on the amount. I've got about 3000 in the cash
part of it, so.
S1 (24:08):
Okay. And then are you managing that yourself or is
somebody else managing it for you?
S6 (24:13):
No. We have an advisor that's managing it for us okay.
S1 (24:17):
Yeah. So I would just say, you know, talk to
your advisor about that. And he or she could determine
which investments are the best to sell. Perhaps there's one
they're wanting to take some profits on. Or maybe they
want to lock in a loss and use that to
offset some profits that you would have otherwise paid at
the end of the year. Uh, you know, in terms
of capital gains. So I think your advisor could determine
the most tax efficient way to do that. But in
(24:39):
terms of, you know, tapping some of this money, if
you feel like you're on track for retirement, you want
to use a portion of this, you know, taxable account
to enjoy. I love that, you know, I don't know
the rest of your financial plan. I assume you don't
have a lot of, uh, high interest consumer debt, and
you've got an emergency fund that's not invested. But assuming
all that's true, I'd say use it and enjoy it.
S6 (25:02):
Yeah. Yep, yep. We got 4500 left on the mortgage
and 18,000in emergency funds, so we're, uh, we're ready to
go here.
S1 (25:12):
That's incredible. Brian. Well done, my friend. I'm on board.
S6 (25:16):
All right. Thank you very much. Thanks for the call.
S1 (25:18):
Absolutely. We appreciate your calling today. Uh, let's go to Nebraska. Hi, Sherry.
How can I help?
S7 (25:24):
Hi. Thank you for taking my call. Um, I'm interested
in determining how to choose between financial advisors. We want
to make sure we're good stewards of what we have. Um,
there are two advisors. One we've had for 30 years.
He's a friend of the family. We've been with him
a lot, but his fees are $4,000 a year higher,
(25:46):
which is a significant amount. And the approach of the
two advisors is different. One is bonds and one's accumulated annuities.
And I just don't know do I just need to
do the the hard work and dive down into all
the data and see what the returns are and versus
each one? Or how do you choose?
S1 (26:06):
You know, it's a great question, Sherry. And, you know,
at the end of the day, I mean, I think, uh,
there's there's the financial side of it, kind of. How
have they performed for you versus what you've asked them
to do in terms of the investment strategy you agreed on?
Given your age and risk tolerance and and with that
investment strategy, how have they performed against the respective benchmarks
(26:31):
that would go along with that investment strategy? So that's
a factor. But it's not the only factor. Uh, you know,
if I were interviewing an advisor, I'd talk about things like,
what role does faith play in your financial advice? Do
they really, you know, bring in biblical wisdom. Second, you know,
what is their definition of financial success? I would also
(26:52):
want to know, you know, what their fees are. I mean,
you know, clearly, I think it's very appropriate for you
to evaluate what are you being charged and is it
normal and customary. And then I think, you know, their
experience and how they've performed for you is another factor. Um,
you know, is it wrong to have a couple of
advisors working on your behalf? Certainly not. I mean, I
(27:14):
would say unless you have significant wealth and even then, uh,
you know, having one advisor might make more sense just
because you've got that trusted relationship. You don't have, you know,
duplication of investments where they're not kind of looking, you know,
at at each other's portfolios. And so that could create
a situation where you have more in one particular strategy,
(27:36):
you know, than you should. Um, just because they're not coordinating, uh,
you know, with one another. And so having one advisor,
you know, looking over all of it, I think can
make some sense. You want somebody you have a good
rapport with, and, you know, it's easy to communicate and
works on your communication rhythms, so communicates in the way
and in the frequency that you want. So you know
(27:59):
some of that you'll just know intuitively after working with
both of these advisors for some time. And so I would,
you know, factor that into the decision. But to your point,
it may require some investigation to determine specifically how do
their fees stack up against what's normal and customary. And
then second, how have they performed? Um, you know, over time,
(28:22):
based on the type of portfolio they've been managing for you,
and you know, what the the corresponding benchmarks have done? Uh,
does that make sense, though? I know I've thrown a
lot at you there.
S7 (28:33):
No, that really does make sense, because the emotional side
is the side that I'm having the most difficulty with.
And so that's really, really helpful.
S1 (28:43):
Meaning you have the the advisor is a friend and
you don't want to have to kind of fire that
person from their job. Is that the issue?
S7 (28:51):
Yeah. He's a friend of the family. He's managed my
dad's portfolio. My mom's, my sisters. You know, everybody in
my family are a bit higher, but we are really
comfortable with him, too. But this new one seems to have,
you know, a different approach. And it's hard to change.
It's kind of like a marriage after 30 years, you know? Yeah.
(29:13):
You're really used to how that person thinks.
S1 (29:16):
Yes. And what is it you're liking about the advisor
who's that's newer on the team here?
S7 (29:24):
Um, he's got some. Well, his fees are less. Okay.
And his, um, approach is a team oriented approach, which
we like. Which the other one is as well. Um,
that's probably the main difference is the fees.
S1 (29:40):
Okay. And has the advisor.
S8 (29:42):
That's been.
S1 (29:43):
With you for some time, do you feel like you
have a good handle on the returns, or would that
take a little bit of work to determine how he's
actually performed?
S7 (29:52):
Um, I think he's performed adequately. Maybe not. Um, stellar. Um,
this has been a rough market the past couple of years,
so that needs to be taken into account as well.
S1 (30:04):
Sure. Well, I think it's perfectly appropriate to have this conversation.
I don't think it's something you need to feel bad about.
I mean, advisors are used to this conversation, so I
would just be transparent. I'd say, listen, I appreciate what
you've done. We're considering, you know, who the right advisor
is to service for this next season. And I'd love
to know, can you give me a deeper dive into
(30:25):
your fees? And secondly, can you give me a report
on just how we've done versus the market? But I
would say that there's more to it than just the expense.
And if this is somebody you have a good rapport
with and he served you well and he's performed well,
you may decide to stick with him, but I don't
think you should shrink away from the conversation. Hang on
the line. We'll finish off the air. Great to have
(30:54):
you with us on Faith and finance live here today.
I'm Rob West. You know, I mentioned when you're interviewing
an advisor and you're trying to find out, is this
person the right one for me? What are those key questions?
I mean, there's there's a number of them, but here's
a few of them. You heard me say to Sherry,
one of those key questions is what role does faith
play in your financial advice? You know, their answer, I think,
(31:17):
can help you determine if this advisor truly integrates biblical truth.
The goal is to find someone who doesn't just respect
your values, but hopefully shares them. There's a big difference
between an advisor who's a Christian and one who actively
discusses financial decision making from a biblical lens, and I
think it's critical. And that's why you hear us talk
(31:37):
so much about the Certified Kingdom Advisor designation on this program. Uh,
another insightful question would be, what's your definition of financial success?
You may want to listen for whether they're only looking
for returns, or considering how they might encourage your stewardship
and generosity and faithfulness. They understand that money is a tool,
(31:58):
not a goal, and that biblical alignment brings clarity and
peace to the planning process. Um, you want to make sure?
Of course. They're technically competent. So you could ask, do
you have the industry? Uh, do you have industry designations? Um,
and what are they? And do you have experience serving
clients like me? I think that would be another key question.
(32:20):
You could say. Tell me about clients who you serve,
who are similar to me, and how you've served them.
And without, of course, naming names, they should be able
to share some stories of of a similar client. And
then you of course, want to know their process and
their compensation. So asking a question like what's your process
(32:40):
for creating a financial plan? And, uh, can you talk
me through your fees and commissions for a client like me?
And not only are they required to disclose this, I
think excellent advisors want to make sure that you understand
and that you're clear on the process, but also the fees.
So hopefully that gives you a few things to think
(33:01):
about as you interview a prospective advisor. And again, if
you'd like to find a CA Certified Kingdom Advisor in
your area, just head to com and click Find a Professional.
All right, back to the phones. We go to Indiana. Hi, Sharon.
How can I help?
S9 (33:17):
Oh well, I have a question. Of course. Um, if
you put a parent into a nursing home, do they
pay the first month and then you pick it up
after that, or does Medicare pay any of that?
S1 (33:33):
Mm. Yeah. So Medicare covers skilled nursing care I believe,
for up to 100 days, uh, per benefit period, but
only if it's medically necessary. So that would be like
a after a hospital stay for rehab, not long term
custodial care. Um, that would, uh, you know, be something different. Um,
(33:56):
so I think, you know, Medicaid, not Medicare is, you know,
has assets and an income limit eligibility. Um, and so
you do need to understand that. But but ultimately, um,
you know, that the, uh, the first 30 or first
hundred days would be, um, where the skilled nursing care
(34:18):
is covered.
S9 (34:19):
And also, I know that Medicare would limit what you
could spend, and they kind of monitor your bank accounts
and assets. Uh, can the children get any money after
that if you have to put them in permanently? Or
(34:42):
is all that money froze that they have invested or.
S1 (34:48):
Uh, yeah. So are you talking about the the person
in the nursing home giving gifts to the children or
coming the other direction?
S9 (34:57):
Gifts to the children?
S1 (34:59):
Yeah.
S8 (34:59):
So you could.
S1 (35:02):
Yeah. So the Medicaid does have what's called a five
year look back. And so they would count those gifts
as assets. So it could, you know, delay Medicaid eligibility
if they were making gifts, uh, to the kids because
those would be considered assets of the Medicaid recipient and
(35:23):
would be factored into those asset limits.
S9 (35:27):
Okay. But as far as they haven't done that, but
if they put them in the nursing home, then all
them would be frozen so that the kids couldn't take
any of them the money out of the assets at all.
I know the government gets their share, which I agree
(35:50):
it should be that way. But but the kids would
not be able to to have any of the assets.
That's correct.
S1 (35:58):
That's right. Yeah. I mean, I think at the end
of the day, you need to get some counsel from
an elder care attorney. I'm not an attorney, but just
generally speaking, that is correct. Medicaid, uh, does have what's
called a clawback. And so they have the ability to
recover assets that they've paid out through Medicaid. Um, but
the kids, unless they're on the account, have some legal
(36:21):
title to the assets, would not be able to get
the assets unless they were receiving them as a part
of an estate distribution after death.
S9 (36:31):
Okay. Thank you for your information.
S1 (36:34):
All right, Sharon, God bless you. Thanks for being on
the program today. We appreciate it. Hey, it's, uh, it's
a Monday. And here in our final segment, Bob doll
stops by to weigh in on the markets. And, uh,
although the, uh, the markets, it seemed like it, uh,
eked out a winning day. Bob. Uh, not a lot
of excitement, although, given the downgrade of the US credit, uh,
(36:54):
late last week, perhaps this was a win, huh?
S10 (36:57):
I think that's probably right. As you know, Rob, we
opened up this morning down quite a bit on the
downgrade of the US debt, and the market fought its
way back almost all day.
S1 (37:09):
Yeah. Interesting. So what do you make of that Moody's.
And by the way, we're on Moody Radio. So let's
be clear. Moody Bible Institute very different than the rating service.
But Moody's downgraded the US. That was the third of
the other two that had already done the same. But
any any noteworthy elements of that.
S10 (37:30):
You summarize it correctly. That is to repeat, Moody's lowered
from the highest to the next highest rating, which the
other rating agencies had already done. Uh, so it was, uh,
you know, a me too kind of thing. Having said
that one more time, it accentuates the debt and the
deficits and the interest expense of the United States government that, uh,
(37:51):
we've gotten away with for years. And we won't forever,
as these numbers just keep getting bigger. Uh.
S1 (37:57):
Yeah. Uh, Bob, what do you make of just kind
of the the rest of the overall health of the economy?
Every week we get new data pouring in or you
continuing to see weakness or you. Have you been pleasantly
surprised at the resiliency of the U.S. economy?
S10 (38:11):
I think if you told me January 1st, we'd be
where we are today. I'd say, well, that's a fair
amount of resilience, uh, for our economy. We are seeing
a lot of weakness in what's called the soft data,
which are surveys of consumers and businesses and kind of
how they're feeling about things. The hard data is how
much money did they actually spend on this, that and
(38:32):
the other thing. And so far, that hard data has
held up pretty well. But historically, as you know, Rob,
soft data points generally migrate over to hard data points.
So some weakness in our future is likely.
S1 (38:47):
Yeah. Very good Bob. I'm reading comments that came out
from Jamie Dimon, of course, the CEO of the the
biggest bank in the US by assets. He's saying we're
underappreciating the effect of these huge deficits, what he calls
a complacent central bank, and the fact that, you know,
we really haven't seen the full effect of these tariffs.
(39:10):
The market came down ten. We're back up ten. And
you know, perhaps there's still another shoe to drop here
in terms of the impact of all of this economy,
I know that parallels a lot of what you've been
saying this year. Would you agree with that overall sentiment?
S10 (39:25):
Yes. The decline was quick. It was actually closer to 20%.
And the recovery has been similar. So both were surprises
as to the magnitude. But I would agree with what
JPMorgan is saying, that we're likely to see some economic weakness,
which probably means some more earnings estimate cuts, which probably
(39:46):
means stocks are going to have trouble moving significantly higher
after it's had such a run in the last month
and a half.
S1 (39:54):
Yeah. Very good Bob. Obviously some movement over the weekend.
A lot of work to be done still, though. On
the tax cuts. How big a factor is that in
all of this?
S10 (40:03):
It's a huge factor. Rob, as you know, I've described
this as between a rock and a hard place. The
rock is we pass a bill that is close to
what's being proposed by the Republicans in the House, which
is another deficit busting bill, or we don't do anything.
And we have the most significant tax increase in U.S.
(40:25):
history on December 31st. Neither alternative is great. My hope
and belief is that the Republicans will do some modification
of the bill that is in front of them now,
and that they will get something passed, hopefully by the
August recess of the of the Congress.
S1 (40:43):
Yeah. Last thing, Bob, obviously we're hearing about all the
investment coming into the US president. Obviously over in the
Middle East last week. Um, but, you know, how long
does it take for those commitments to begin to show
up into economic activity? I mean, is that something that
could affect us in the near term?
S10 (41:05):
Yeah. Great question, Rob. First of all, some of the
numbers are already pledged. So it's a repeat, some is
new money and some will be well, maybe when we
get out in time. So I don't want to discount
any of the hard work of the administration, but it's
going to take time for this money to be invested
(41:25):
and see, see a return on capital and beef up
our economy. But it's a it's a step in the
right direction for sure.
S1 (41:33):
All right, Bob, we always appreciate your time. Thanks for
being here.
S10 (41:36):
God bless.
S1 (41:38):
All right. That's Bob Dole. He's CEO of Crossmark Global Investments.
You can sign up for his weekly investment commentary at
Crossmark global. Com. All right. Let's round out the broadcast
today with your questions. We'll head to Illinois. Hi, Lee.
Go ahead.
S11 (41:53):
Hi, there. Thank you for your program. Um, quick question.
I'm turning 65 this year. Uh, in five or in,
like six months. Um, but I'm I'm a teacher, and
I'm working for three more years. And so I have insurance.
I think I understand that I have to still sign
(42:14):
up for Medicare. I'm just wondering if I have to
sign up for Medicare A or Medicare A and B?
S1 (42:22):
Yeah. Good question. Uh, let's do this. I, uh, was
not paying attention to the clock, so I'm out of time.
But I want to get to your question, so hang
on the line. We'll, uh, we'll talk off the air here.
I'll be right with you folks. Thanks for being with
us today. Faith and finance. Lives of partnership between Moody
Radio and Faith fi. Big thanks to Lisa, Jim, Dan
and Darina. We'll see you tomorrow. Bye bye.
The King will reply, truly I tell you, whatever you
did for the least of these brothers and sisters of mine,
you did for me. Matthew 2540. Hi, I'm Rob West.
Some exciting things are happening that will give you more
ways to help the least of these in God's kingdom.
Brian Holtz joins us today with details about how we
can all have the greatest impact in helping those in need.
(00:32):
And then we'll take your phone calls at 800, 500,
25 7000. This is faith and finance. Live biblical wisdom
for your financial journey. Well, it's great to have Brian
Holtz with us again. Brian is the CEO of Compass
Financial Ministry. He's a great friend and partner. And Brian,
great to have you back.
S2 (00:52):
It's my pleasure. Rob.
S1 (00:54):
When you were on the show a few months back, Brian,
you introduced a powerful new resource, a small group video
study called Making Ends Meet. Created to help struggling families
move toward financial stability. You also shared some insights into
the real challenges these families are facing. It's been a while,
so could you remind us of what compass set out
(01:14):
to accomplish with this project and how you approach the problem?
S2 (01:18):
Yeah, we and other ministries have generally focused on middle
and upper income levels, largely because we're all a little
puzzled when we work with someone who truly doesn't have
the financial margin they need. Not just that they're prioritizing poorly,
but that they just don't have the income to meet
their basic expenses. But the team at compass felt God
pushing us to address this, so we partnered with several
(01:40):
organizations who specialize in this area of helping struggling families,
and we learned what unique issues we needed to address
from a biblical perspective.
S1 (01:49):
Well, I'm so glad you did. This is such a
vital conversation, so how can we truly help those in need?
Is it as simple as giving money, or is there
a more effective, perhaps lasting way to serve them well?
S2 (02:01):
That certainly is the question. And during the project we
learned some things that were both surprising and some things
that were not surprising at all. To begin, I'll plant
my flag firmly on what doesn't create lasting change, and
that's just giving money to poor people and poor communities. Now,
that doesn't mean you shouldn't do it. In fact, the
passage you opened with today encourages us to provide physically
(02:22):
for the poor. It just means we shouldn't expect deep
life transformation as a result of only financial assistance. It
may provide relief, but it will almost always be temporary.
Study after study, both from faith based and secular research,
continues to disprove the idea that simply injecting money into
poverty solves the problem, or even provides any lasting change
(02:44):
at all.
S1 (02:44):
Yeah, so clearly we've uncovered what doesn't work here, but
what are some better ways to respond?
S2 (02:51):
Better option is actually quite obvious. You provide not only
financial assistance, but also relational assistance along with it. Think
about it this way. Jesus didn't just go around helping
people out of a jam and then leaving. He would
invite them to follow him to have their lives changed
at a deeper level, far beyond physical relief. When we
invest relationally in people, the change is more impactful and
(03:15):
longer lasting.
S1 (03:17):
Yeah. You're right. I mean, when you put it like that,
it does seem pretty clear. By walking alongside them on
the journey to stability. You're really engaging in discipleship, aren't you?
S2 (03:27):
Absolutely. Because you've stepped up financially. You have stronger relational credibility.
And because you have stronger relational credibility, you're able to
help them better use the financial gift, not as a
mandate of I'll only give you money if. But from
a heart of truly wanting what's best for them.
S1 (03:45):
Well, that's powerful, but I'm guessing there's a reason we
don't turn to that right away.
S2 (03:49):
There is. One of the biggest reasons is that poor
communities are extremely interdependent like we see in the church
of acts. These communities share their resources and belongings, and
it's their community's culture to care for one another. That,
of course, is a great thing. But when someone in
that community has the opportunity to get out of poverty,
it actually carries with it a lot of anxiety. Think
(04:11):
about it this way if all of a sudden I
have money and my friends still don't. Will they accept
me anymore if I lose my community, where will I
fit in? These are real issues and if we're trying
to help someone navigate through them, we've got to be
committed with our time and prayers for the long run.
S1 (04:27):
Yeah, that makes sense, Brian. All right, we're about out
of time. But before we go, how can listeners learn more.
S2 (04:32):
About the making ends meet folks who are already investing
in their communities and easy to follow plan? Visit us
at Compass Financial. Org to learn more.
S1 (04:43):
Folks, this is such an important study. It can help
you serve those in your community that are in this
place of need. It's called making ends meet. The study
is available at Compass Financial. Org. That's Compass Financial ministry. Brian,
thanks for your time today.
S2 (05:02):
Thanks for having me, Rob.
S1 (05:03):
We've got to take a quick break, but much more
just around the corner. If you have a question today,
call right now. 800 525 7000. That's 800, 525, 7000.
I'm Rob West and this is Faith in finance live.
We'll be right back.
S3 (05:31):
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 (05:56):
Thanks for joining us today on Faith in Finance live
I'm Rob West. Glad to be back in the studio today.
Last week I was off on vacation. It was the
only week of the summer that all six of us,
Julie and I and our four kids were going to
be available to travel together. It's a busy summer. We
have kids that are growing up. I've got one that
(06:16):
just graduated high school, one in college, two still in
high school. So the four of them all going different directions.
So we were able to get away and go visit
some family down in South Florida. But great to be back.
Always enjoy time away, but enjoy coming back to the
the work that God has called me to. I love
what I do every day, love serving you and coming
(06:36):
alongside you in your journey to be a wise and
faithful steward of God's resources. So I'm sure you've got
some questions today. I'd love to hear them. If there's
anything on your mind, financially speaking, now's the time to call.
We've got lines open, but they will fill quickly. So call.
Right now 800 525 7000 with your financial questions today
again that number 800 525 7000. Our team is standing by.
(07:02):
We'll dive into those questions here in just a moment.
Also a little later Bob doll stops by. The market
was able to squeak out a up day just barely,
though the S&P 500 up less than one tenth of 1%,
shrugging off the US credit downgrade. We'll get Bob's thoughts
(07:25):
on that moody downgrade. Uh, straight ahead, uh, in the
final segment today. But, uh, we'll dive into your questions
here in just a moment. In the news today, a
new report by the US Department of Health and Human
Services reveals that taking a more hands on approach to
long term care planning can make a huge difference when
it comes to costs. Here's what experts recommend. First, start early.
(07:49):
You won't be surprised to hear that it's never too
soon to begin planning. Talk to your family about long
term care needs and finances before the situation becomes urgent. Second,
consider family help. Think about who and your family might
help with care. Could they offer financial support as well?
Start those conversations now. Make your home ready. That's number three.
(08:10):
If you want to stay in your home, now is
the time to make sure it's set up for the future.
Small adjustments. We're talking about removing stairs or widening doorways.
Those can make a huge difference. Next, prepare financially. Look
into long term care insurance. Having a plan in place
will help to keep you from scrambling later on. By
the way, it's a good idea to get that long
(08:31):
term care insurance policy if you are going to get
one in your 50s, certainly before 65. That will help
to keep the premiums lower. Keep in mind, you know,
there's about 5 or 6 major players in this space.
There was a lot more in the early days. It's
kind of been reduced to a few key players that
are committed to long term care in the insurance space.
(08:53):
You're going to want to shop around, you know, depending
on your health status. Some companies look more favorably on
certain medical conditions than others. That's why an independent life
insurance or excuse me, long term care insurance agent will
be key to help you sort that out. Determine the
policy that's the best for you. Now keep in mind
these policies are not inexpensive, so you need to make
(09:15):
sure it fits in your budget, but you need to
make sure it fits today, but also be able to
absorb future premium increases. They can increase not on an
individual basis, but on an aggregate basis. And they have
dramatically because, well, the cost of health care and medical
care is rising dramatically. And so these policies are getting
(09:38):
more expensive. Here's the key though. 70% of 65 year
olds and older will need long term care at some
point in their lives, usually between 18 months and three years.
Nursing care if you need full nursing care, it could
run over $100,000 a year. Easy. That's probably your biggest
risk in terms of eroding the assets that you've accumulated
(10:00):
during your working years. So considering long term care insurance,
I think makes a lot of sense. Again, it's got
to be able to fit into the budget. But if
you've got assets somewhere between 200,000 and 2 million, which
is obviously where a lot of people are, I think
it's worth looking at. You certainly don't want to be
in a situation where you have to spend everything down
and then rely on a medicaid approved facility, unless you
(10:21):
absolutely have to. So certainly worth looking into, but something
just to consider as you're planning for that season of life.
All right. Let's dive into your questions today. Again the
number is 800 525 7000. You can call right now.
We're going to begin in Saint Louis today. Hi Michael.
Go ahead sir.
S4 (10:41):
Thank you. Uh, so kind of a two part question
on mortgages. Uh, the first one, uh, what exactly should
you try and look at to compare mortgages besides the
annual percentage rate? And then, uh, the, uh, what what
is there an average cost, uh, for, uh, origination fees
(11:04):
and for closing costs? How how do you judge what
what is right with that?
S1 (11:09):
Yeah. It's great question. Uh, so first of all, uh,
you know, beyond the rates and obviously that would be key.
You'd want to check those origination and closing costs. That
would be a second big one. Uh, the Apr is
going to include the total cost. And so that will
be an important consideration. You can look at the April,
or you can look directly at those costs and determine
(11:33):
what percent they are of the mortgage. Um, you'll of
course want to consider the various loan terms, the lender's reputation.
I would just do a quick search on them on
a site like Bankrate. You'd want to consider the various
loan options, of course, and incentives like cash back. I
would say always get three bids. You know, the average
(11:54):
person for this, what is the largest transaction for most
people in their lives? Often we'll just go with one lender.
In terms of quoting it, I would say getting three
to compare, you know, would be key. So those would
be the primary issues. You'd be looking at fees, Apr,
loan terms, lender reputation and then, you know, consider the
(12:17):
the various loan options in terms of the the average cost.
I would say, you know, expect somewhere between a half
a percent and 1% for origination. So that's 1500 to
3000 on a $300,000 loan. And that would roll into
what would often be 3 to 5% in terms of
total closing costs. So those would be kind of the
(12:39):
general ranges if you're kind of way outside of that
on either of those, then I would say that would
be a red flag. Is that helpful though?
S4 (12:48):
Yeah. So you're saying five total including the origination fees.
S1 (12:52):
That's right.
S4 (12:53):
Yeah. Was I okay?
S1 (12:55):
Okay. Exactly right. Yep. So you're talking about a $300,000 loan.
You know, you're looking at it could run you upwards
of 15 grand.
S4 (13:04):
Okay. No, that's that's. I'm getting bids this time around. And, uh,
so I was trying to make sure I'm comparing and
looking for, you know, who is close to being where
they need to be versus their way out of range.
Very helpful.
S1 (13:20):
Absolutely. Our friends at Movement Mortgage could be a great
option for you. At least one in the mix. You
could just go to movement.com to learn more. They're a
top ten lender, uh, owned and run by believers. Uh,
top ten, meaning in the top ten largest in the
United States and cover the entire country, but, uh. Glad
to hear you're doing your homework on this, Michael. That'll
(13:41):
pay off. And, uh, hopefully that's giving you a few
things to think about today. Thanks for being on the program, sir.
May the Lord bless you. Well, we're going to take
a break here. When we come back in our next segment,
we'll dive into some more phone calls. Ken is calling
from Kansas City. We'll jump into his question and then
talk to Brian again. Coming up a little later in
the broadcast, Bob doll stops by. We'll get Bob to
(14:02):
weigh in on the US credit downgrade that came from
Moody's late last week on Friday. Much more ahead on
Faith and finance live here on Moody Radio. I'm Rob West.
Our goal here today to be an encouragement to you,
to help you be a wise and faithful steward of
God's resources. Stay with us. Thanks for joining us today
(14:29):
on Faith and finance. Live. I'm Rob West back in
the studio today live taking your calls and questions. We've
got lines open. We're ready for you at 800 525 7000.
That's 800 525 7000. You can call right now. Let's
head to Kansas City. Ken, thanks for your patience, sir.
Go ahead.
S5 (14:49):
Hey, thanks so much for taking my call. I really
enjoy your show. My question is really somewhat in general. Uh,
but I've got a friend who is almost ready to retire,
who is a union electrician. And when the tariffs came
in and took a tank, he had a really big
complaint that that $100,000 he lost would never be replaced.
(15:12):
And I said, well, sure it will. You know, once
the markets go back up, whether it's this year or
next year, whatever, that, you'll get that back. And I
just didn't know how to explain that to him. But
I'm I'm right with that ain't I?
S1 (15:26):
No. Totally. Yeah. Exactly. Right. So you know, here's the reality.
I mean, a few thoughts. One is the money he
quote lost in the recent market dip due to the
tariffs is absolutely not gone forever. I think you need
to distinguish between what are called unrealized losses versus realized losses. Remember,
an unrealized loss is an investment dropping in value on paper.
(15:51):
But until you sell, you sell. No actual loss is
locked in. So that's the first reality. Secondly, uh, historically
markets recover from corrections like this. So for example, the
S&P 500 took about four months. Uh, you know, on
average to bounce back from a 10 to 20% correction
(16:12):
over time and even bear markets where you've got a
20 plus percent drop on average, recover in 1 to
2 years. And that would be true of 2008, the
financial crisis as well as the 2020 Covid crash. So
I would say the recent tariff driven plunge, Lunge. Uh,
you know, saw the S&P 500, uh, drop 10.5% about.
(16:37):
But it's already showing signs of stabilizing. We've recovered, uh,
you know, most of that. And again, on average, uh,
you know, it takes about four months to bounce back
from a correction like we saw. Uh, the other silver
lining is assuming he's still making contributions. Um, you know,
you're able to buy when the market pulls back. Let's
(16:59):
say you're making a a consistent, uh, you know, contribution
to a retirement plan. You're able to buy more shares
at lower prices for the same monthly, uh, contribution coming
out of the paycheck. And that sets you up for
bigger gains when the market rebounds. Because, again, if you're buying,
(17:20):
you know, you're putting in the same amount out of
every paycheck. But stocks are cheaper because the market has
pulled back. You're buying more shares of the same mutual
funds or, you know, whatever he's buying. And then as
that market recovers, he stands to benefit. So, you know,
I think, uh, you know, those are the kinds of
things I would be talking to him about. Does that
(17:40):
make sense?
S5 (17:42):
Yeah. And you've answered my question perfectly as to what
I kind of thought it would be. Uh, and this
just helps support my, uh, when I go back and
chat with him again as to the direction he's that
he's going to be. Okay.
S1 (17:56):
Yeah. Exactly. Right. And the other piece I would throw
out there not to throw too much at you, but,
you know, keep in mind, even once he hits retirement,
let's say at 65, maybe it's not. But if it is,
I mean, he still needs to take a long term perspective.
So even though you get more conservative as you get
close to retirement, I would say the typical retiree, you know,
(18:18):
should still have somewhere between 40 and 50% in stocks. Uh,
because remember, you know, we need to take I mean,
if he lives, you know, into his 90s, he's still
got three decades for this money to grow or to
at the very least, you know, have a portion of
it that's growing in stocks to offset perhaps what he's
(18:38):
pulling out to supplement his income. So even at retirement,
we're still able to take a long term perspective. And
I think that's really key to being able to appreciate
that time is on his side. He doesn't need to
get anxious. He doesn't need to be too aggressive. But
the market will recover in time.
S5 (18:55):
I certainly agree with you and you've answered it perfectly.
I really appreciate your time.
S1 (19:01):
Hey, everybody needs a brother in law like you. Ken.
We appreciate your call today. Thanks for walking alongside your
brother in law. We appreciate it. Let's go to Ohio. Hey, Brian.
How can I help?
S6 (19:11):
Hey, how's it going? It's going good. Good.
S1 (19:14):
Thanks.
S6 (19:14):
Um, yeah, I got a question about, um, rolling, uh,
traditional IRA into a Roth IRA. It was a rollover
account from a previous job, And um, so I've got
currently I've got 55,000 in the Roth and 37,000 in
(19:35):
the traditional.
S1 (19:37):
Okay. So say that breakdown again. What do you what
do you have right now?
S6 (19:42):
55,000 in the Roth IRA and 37,000 in the traditional.
S1 (19:47):
Okay. Yeah. Uh. Got it. And so you've got, in
addition to that, another, uh, account that would be coming
into the traditional or are you looking to, to move
the 37?
S6 (20:02):
Um, we put in I put in $200 a month
into the, into the Roth, um, and, um, so it
would just be an extra amount of that 37 into
the Roth.
S1 (20:18):
Got it.
S6 (20:19):
Yeah. A good idea?
S1 (20:20):
Yeah. You know, how far out are you from retirement
at this point?
S6 (20:25):
Um, 30 years.
S1 (20:27):
Okay. Yeah. You got some time on your side? Yeah.
I mean, I like the Roth a lot, especially at
your age. Um, because, you know, the real benefit of
the Roth IRA is you get that tax free growth,
and you're never going to pay any tax on the
gains when you pull it out in retirement. You also
don't have the required minimum. So if you were to
over accumulate or you find you don't need some of this,
(20:49):
you could pass it, you know, on to the kids or,
you know, to heirs and you know, they wouldn't pay
any tax on it as it comes out either, which
is just a huge benefit. They also don't require you
to take anything out in a required minimum distribution with Roth,
whereas they do with the the traditional. So if you
were a little closer to retirement, I'd say keep both buckets.
(21:10):
But with you being that far away, I'd say if
you have the cash flow to absorb the tax bite,
which all that 37,000 or whatever portion you convert would
be added to your taxable income in the year of
the conversion, so you need to be ready to pay
that without taking anything out of the account. So you
need to have the surplus to do that. Then I
(21:31):
would say, you know, getting close to 100 K in
Roths to grow for the future makes a lot of sense.
So I like that a lot. Let's do this. Brian, um,
I know you have a second part to your question.
I've got to take a break. So stay right there
and we'll tackle it on the other side. We'll be
right back. Great to have you with us today on
(21:56):
Faith in finance live I'm Rob West. We're taking your
calls and questions today. Lines are open 800 525 7000.
Again that's 800 525 7000. You can call right now.
Before the break, we were talking to Brian. He was
wondering about, uh, rolling some traditional IRA money into an
existing Roth IRA. And he's got 30 years on his side.
(22:17):
And so if he's got the money to do it. Brian,
I was saying that's not a bad idea. Any follow
up on that? And I know you had a second question,
so go ahead.
S6 (22:26):
Yeah, I had talked with our tax CPA and he
was staying and looked at the numbers and thought we
could transfer like 3500 a year, um, from the traditional
into the Roth without any tax implications there.
S1 (22:42):
Uh, okay. Yeah. So he's saying, uh, you would have
gotten a refund, but we can, you know, basically chew
up the refund that you have and come out even.
Is that right?
S6 (22:51):
Yeah.
S1 (22:52):
Yeah, yeah. Okay. Yeah, I like that plan.
S6 (22:56):
All right. And then I have a taxable investment account
with about 160,000 in it. And, uh, we've we've lived
frugally up to this point, but with three kids, young kids,
we'd like to take them on vacations. And I was
wondering if it would be suggestible to use that account for,
for some of those trips.
S1 (23:15):
Yeah, I think so. I mean, money is a good
gift from God. We have to be careful about the
seduction of wealth, but it doesn't change the fact that
it was a good gift. Or it is, and that's
to share and to provide. But I think also to enjoy.
And I think, uh, God smiles when we use his
resources in the context of a plan, living within our means,
you know, holding it loosely, giving it generously. But when
(23:37):
we use it to enjoy and build relationships and especially
memories with your family, I love that. And I think
that's a perfect use of God's money. Uh, where to
pull that from? I think, you know, if you can
pull it from certainly an after tax account, that makes
a lot of sense. Uh, would it be coming from
a cash portion of that account, like a money market,
or would you have to sell some investments?
S6 (24:00):
We'd probably have to sell some investments. Um, depending on
on the amount. I've got about 3000 in the cash
part of it, so.
S1 (24:08):
Okay. And then are you managing that yourself or is
somebody else managing it for you?
S6 (24:13):
No. We have an advisor that's managing it for us okay.
S1 (24:17):
Yeah. So I would just say, you know, talk to
your advisor about that. And he or she could determine
which investments are the best to sell. Perhaps there's one
they're wanting to take some profits on. Or maybe they
want to lock in a loss and use that to
offset some profits that you would have otherwise paid at
the end of the year. Uh, you know, in terms
of capital gains. So I think your advisor could determine
the most tax efficient way to do that. But in
(24:39):
terms of, you know, tapping some of this money, if
you feel like you're on track for retirement, you want
to use a portion of this, you know, taxable account
to enjoy. I love that, you know, I don't know
the rest of your financial plan. I assume you don't
have a lot of, uh, high interest consumer debt, and
you've got an emergency fund that's not invested. But assuming
all that's true, I'd say use it and enjoy it.
S6 (25:02):
Yeah. Yep, yep. We got 4500 left on the mortgage
and 18,000in emergency funds, so we're, uh, we're ready to
go here.
S1 (25:12):
That's incredible. Brian. Well done, my friend. I'm on board.
S6 (25:16):
All right. Thank you very much. Thanks for the call.
S1 (25:18):
Absolutely. We appreciate your calling today. Uh, let's go to Nebraska. Hi, Sherry.
How can I help?
S7 (25:24):
Hi. Thank you for taking my call. Um, I'm interested
in determining how to choose between financial advisors. We want
to make sure we're good stewards of what we have. Um,
there are two advisors. One we've had for 30 years.
He's a friend of the family. We've been with him
a lot, but his fees are $4,000 a year higher,
(25:46):
which is a significant amount. And the approach of the
two advisors is different. One is bonds and one's accumulated annuities.
And I just don't know do I just need to
do the the hard work and dive down into all
the data and see what the returns are and versus
each one? Or how do you choose?
S1 (26:06):
You know, it's a great question, Sherry. And, you know,
at the end of the day, I mean, I think, uh,
there's there's the financial side of it, kind of. How
have they performed for you versus what you've asked them
to do in terms of the investment strategy you agreed on?
Given your age and risk tolerance and and with that
investment strategy, how have they performed against the respective benchmarks
(26:31):
that would go along with that investment strategy? So that's
a factor. But it's not the only factor. Uh, you know,
if I were interviewing an advisor, I'd talk about things like,
what role does faith play in your financial advice? Do
they really, you know, bring in biblical wisdom. Second, you know,
what is their definition of financial success? I would also
(26:52):
want to know, you know, what their fees are. I mean,
you know, clearly, I think it's very appropriate for you
to evaluate what are you being charged and is it
normal and customary. And then I think, you know, their
experience and how they've performed for you is another factor. Um,
you know, is it wrong to have a couple of
advisors working on your behalf? Certainly not. I mean, I
(27:14):
would say unless you have significant wealth and even then, uh,
you know, having one advisor might make more sense just
because you've got that trusted relationship. You don't have, you know,
duplication of investments where they're not kind of looking, you know,
at at each other's portfolios. And so that could create
a situation where you have more in one particular strategy,
(27:36):
you know, than you should. Um, just because they're not coordinating, uh,
you know, with one another. And so having one advisor,
you know, looking over all of it, I think can
make some sense. You want somebody you have a good
rapport with, and, you know, it's easy to communicate and
works on your communication rhythms, so communicates in the way
and in the frequency that you want. So you know
(27:59):
some of that you'll just know intuitively after working with
both of these advisors for some time. And so I would,
you know, factor that into the decision. But to your point,
it may require some investigation to determine specifically how do
their fees stack up against what's normal and customary. And
then second, how have they performed? Um, you know, over time,
(28:22):
based on the type of portfolio they've been managing for you,
and you know, what the the corresponding benchmarks have done? Uh,
does that make sense, though? I know I've thrown a
lot at you there.
S7 (28:33):
No, that really does make sense, because the emotional side
is the side that I'm having the most difficulty with.
And so that's really, really helpful.
S1 (28:43):
Meaning you have the the advisor is a friend and
you don't want to have to kind of fire that
person from their job. Is that the issue?
S7 (28:51):
Yeah. He's a friend of the family. He's managed my
dad's portfolio. My mom's, my sisters. You know, everybody in
my family are a bit higher, but we are really
comfortable with him, too. But this new one seems to have,
you know, a different approach. And it's hard to change.
It's kind of like a marriage after 30 years, you know? Yeah.
(29:13):
You're really used to how that person thinks.
S1 (29:16):
Yes. And what is it you're liking about the advisor
who's that's newer on the team here?
S7 (29:24):
Um, he's got some. Well, his fees are less. Okay.
And his, um, approach is a team oriented approach, which
we like. Which the other one is as well. Um,
that's probably the main difference is the fees.
S1 (29:40):
Okay. And has the advisor.
S8 (29:42):
That's been.
S1 (29:43):
With you for some time, do you feel like you
have a good handle on the returns, or would that
take a little bit of work to determine how he's
actually performed?
S7 (29:52):
Um, I think he's performed adequately. Maybe not. Um, stellar. Um,
this has been a rough market the past couple of years,
so that needs to be taken into account as well.
S1 (30:04):
Sure. Well, I think it's perfectly appropriate to have this conversation.
I don't think it's something you need to feel bad about.
I mean, advisors are used to this conversation, so I
would just be transparent. I'd say, listen, I appreciate what
you've done. We're considering, you know, who the right advisor
is to service for this next season. And I'd love
to know, can you give me a deeper dive into
(30:25):
your fees? And secondly, can you give me a report
on just how we've done versus the market? But I
would say that there's more to it than just the expense.
And if this is somebody you have a good rapport
with and he served you well and he's performed well,
you may decide to stick with him, but I don't
think you should shrink away from the conversation. Hang on
the line. We'll finish off the air. Great to have
(30:54):
you with us on Faith and finance live here today.
I'm Rob West. You know, I mentioned when you're interviewing
an advisor and you're trying to find out, is this
person the right one for me? What are those key questions?
I mean, there's there's a number of them, but here's
a few of them. You heard me say to Sherry,
one of those key questions is what role does faith
play in your financial advice? You know, their answer, I think,
(31:17):
can help you determine if this advisor truly integrates biblical truth.
The goal is to find someone who doesn't just respect
your values, but hopefully shares them. There's a big difference
between an advisor who's a Christian and one who actively
discusses financial decision making from a biblical lens, and I
think it's critical. And that's why you hear us talk
(31:37):
so much about the Certified Kingdom Advisor designation on this program. Uh,
another insightful question would be, what's your definition of financial success?
You may want to listen for whether they're only looking
for returns, or considering how they might encourage your stewardship
and generosity and faithfulness. They understand that money is a tool,
(31:58):
not a goal, and that biblical alignment brings clarity and
peace to the planning process. Um, you want to make sure?
Of course. They're technically competent. So you could ask, do
you have the industry? Uh, do you have industry designations? Um,
and what are they? And do you have experience serving
clients like me? I think that would be another key question.
(32:20):
You could say. Tell me about clients who you serve,
who are similar to me, and how you've served them.
And without, of course, naming names, they should be able
to share some stories of of a similar client. And
then you of course, want to know their process and
their compensation. So asking a question like what's your process
(32:40):
for creating a financial plan? And, uh, can you talk
me through your fees and commissions for a client like me?
And not only are they required to disclose this, I
think excellent advisors want to make sure that you understand
and that you're clear on the process, but also the fees.
So hopefully that gives you a few things to think
(33:01):
about as you interview a prospective advisor. And again, if
you'd like to find a CA Certified Kingdom Advisor in
your area, just head to com and click Find a Professional.
All right, back to the phones. We go to Indiana. Hi, Sharon.
How can I help?
S9 (33:17):
Oh well, I have a question. Of course. Um, if
you put a parent into a nursing home, do they
pay the first month and then you pick it up
after that, or does Medicare pay any of that?
S1 (33:33):
Mm. Yeah. So Medicare covers skilled nursing care I believe,
for up to 100 days, uh, per benefit period, but
only if it's medically necessary. So that would be like
a after a hospital stay for rehab, not long term
custodial care. Um, that would, uh, you know, be something different. Um,
(33:56):
so I think, you know, Medicaid, not Medicare is, you know,
has assets and an income limit eligibility. Um, and so
you do need to understand that. But but ultimately, um,
you know, that the, uh, the first 30 or first
hundred days would be, um, where the skilled nursing care
(34:18):
is covered.
S9 (34:19):
And also, I know that Medicare would limit what you
could spend, and they kind of monitor your bank accounts
and assets. Uh, can the children get any money after
that if you have to put them in permanently? Or
(34:42):
is all that money froze that they have invested or.
S1 (34:48):
Uh, yeah. So are you talking about the the person
in the nursing home giving gifts to the children or
coming the other direction?
S9 (34:57):
Gifts to the children?
S1 (34:59):
Yeah.
S8 (34:59):
So you could.
S1 (35:02):
Yeah. So the Medicaid does have what's called a five
year look back. And so they would count those gifts
as assets. So it could, you know, delay Medicaid eligibility
if they were making gifts, uh, to the kids because
those would be considered assets of the Medicaid recipient and
(35:23):
would be factored into those asset limits.
S9 (35:27):
Okay. But as far as they haven't done that, but
if they put them in the nursing home, then all
them would be frozen so that the kids couldn't take
any of them the money out of the assets at all.
I know the government gets their share, which I agree
(35:50):
it should be that way. But but the kids would
not be able to to have any of the assets.
That's correct.
S1 (35:58):
That's right. Yeah. I mean, I think at the end
of the day, you need to get some counsel from
an elder care attorney. I'm not an attorney, but just
generally speaking, that is correct. Medicaid, uh, does have what's
called a clawback. And so they have the ability to
recover assets that they've paid out through Medicaid. Um, but
the kids, unless they're on the account, have some legal
(36:21):
title to the assets, would not be able to get
the assets unless they were receiving them as a part
of an estate distribution after death.
S9 (36:31):
Okay. Thank you for your information.
S1 (36:34):
All right, Sharon, God bless you. Thanks for being on
the program today. We appreciate it. Hey, it's, uh, it's
a Monday. And here in our final segment, Bob doll
stops by to weigh in on the markets. And, uh,
although the, uh, the markets, it seemed like it, uh,
eked out a winning day. Bob. Uh, not a lot
of excitement, although, given the downgrade of the US credit, uh,
(36:54):
late last week, perhaps this was a win, huh?
S10 (36:57):
I think that's probably right. As you know, Rob, we
opened up this morning down quite a bit on the
downgrade of the US debt, and the market fought its
way back almost all day.
S1 (37:09):
Yeah. Interesting. So what do you make of that Moody's.
And by the way, we're on Moody Radio. So let's
be clear. Moody Bible Institute very different than the rating service.
But Moody's downgraded the US. That was the third of
the other two that had already done the same. But
any any noteworthy elements of that.
S10 (37:30):
You summarize it correctly. That is to repeat, Moody's lowered
from the highest to the next highest rating, which the
other rating agencies had already done. Uh, so it was, uh,
you know, a me too kind of thing. Having said
that one more time, it accentuates the debt and the
deficits and the interest expense of the United States government that, uh,
(37:51):
we've gotten away with for years. And we won't forever,
as these numbers just keep getting bigger. Uh.
S1 (37:57):
Yeah. Uh, Bob, what do you make of just kind
of the the rest of the overall health of the economy?
Every week we get new data pouring in or you
continuing to see weakness or you. Have you been pleasantly
surprised at the resiliency of the U.S. economy?
S10 (38:11):
I think if you told me January 1st, we'd be
where we are today. I'd say, well, that's a fair
amount of resilience, uh, for our economy. We are seeing
a lot of weakness in what's called the soft data,
which are surveys of consumers and businesses and kind of
how they're feeling about things. The hard data is how
much money did they actually spend on this, that and
(38:32):
the other thing. And so far, that hard data has
held up pretty well. But historically, as you know, Rob,
soft data points generally migrate over to hard data points.
So some weakness in our future is likely.
S1 (38:47):
Yeah. Very good Bob. I'm reading comments that came out
from Jamie Dimon, of course, the CEO of the the
biggest bank in the US by assets. He's saying we're
underappreciating the effect of these huge deficits, what he calls
a complacent central bank, and the fact that, you know,
we really haven't seen the full effect of these tariffs.
(39:10):
The market came down ten. We're back up ten. And
you know, perhaps there's still another shoe to drop here
in terms of the impact of all of this economy,
I know that parallels a lot of what you've been
saying this year. Would you agree with that overall sentiment?
S10 (39:25):
Yes. The decline was quick. It was actually closer to 20%.
And the recovery has been similar. So both were surprises
as to the magnitude. But I would agree with what
JPMorgan is saying, that we're likely to see some economic weakness,
which probably means some more earnings estimate cuts, which probably
(39:46):
means stocks are going to have trouble moving significantly higher
after it's had such a run in the last month
and a half.
S1 (39:54):
Yeah. Very good Bob. Obviously some movement over the weekend.
A lot of work to be done still, though. On
the tax cuts. How big a factor is that in
all of this?
S10 (40:03):
It's a huge factor. Rob, as you know, I've described
this as between a rock and a hard place. The
rock is we pass a bill that is close to
what's being proposed by the Republicans in the House, which
is another deficit busting bill, or we don't do anything.
And we have the most significant tax increase in U.S.
(40:25):
history on December 31st. Neither alternative is great. My hope
and belief is that the Republicans will do some modification
of the bill that is in front of them now,
and that they will get something passed, hopefully by the
August recess of the of the Congress.
S1 (40:43):
Yeah. Last thing, Bob, obviously we're hearing about all the
investment coming into the US president. Obviously over in the
Middle East last week. Um, but, you know, how long
does it take for those commitments to begin to show
up into economic activity? I mean, is that something that
could affect us in the near term?
S10 (41:05):
Yeah. Great question, Rob. First of all, some of the
numbers are already pledged. So it's a repeat, some is
new money and some will be well, maybe when we
get out in time. So I don't want to discount
any of the hard work of the administration, but it's
going to take time for this money to be invested
(41:25):
and see, see a return on capital and beef up
our economy. But it's a it's a step in the
right direction for sure.
S1 (41:33):
All right, Bob, we always appreciate your time. Thanks for
being here.
S10 (41:36):
God bless.
S1 (41:38):
All right. That's Bob Dole. He's CEO of Crossmark Global Investments.
You can sign up for his weekly investment commentary at
Crossmark global. Com. All right. Let's round out the broadcast
today with your questions. We'll head to Illinois. Hi, Lee.
Go ahead.
S11 (41:53):
Hi, there. Thank you for your program. Um, quick question.
I'm turning 65 this year. Uh, in five or in,
like six months. Um, but I'm I'm a teacher, and
I'm working for three more years. And so I have insurance.
I think I understand that I have to still sign
(42:14):
up for Medicare. I'm just wondering if I have to
sign up for Medicare A or Medicare A and B?
S1 (42:22):
Yeah. Good question. Uh, let's do this. I, uh, was
not paying attention to the clock, so I'm out of time.
But I want to get to your question, so hang
on the line. We'll, uh, we'll talk off the air here.
I'll be right with you folks. Thanks for being with
us today. Faith and finance. Lives of partnership between Moody
Radio and Faith fi. Big thanks to Lisa, Jim, Dan
and Darina. We'll see you tomorrow. Bye bye.
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