July 29, 2025 • 42 mins
We are constantly bombarded by the message, “You just need a little more.” But what if real peace isn’t found in having more, but in learning to need less? For some, the word, “wealth” means freedom. For others, it brings anxiety and pressure. On the next Faith & Finance Live, Jeff Manion visits Rob West to explore how we can cultivate contentment in a culture where more is often sought and desired. Then, Rob takes your calls and questions. That’s Faith & Finance Live, where biblical wisdom meets today’s finances—weekdays at 4pm Eastern/3pm Central on Moody Radio.
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Episode Transcript
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S1 (00:08):
The world constantly tells us you need just a little
bit more. But what if real peace isn't found in
having more, but in learning to need less? I am
Rob West. What comes to mind when you hear the
word wealth? For some it means freedom. For others, it
brings anxiety and pressure. Today, Jeff Manion joins us to
explore how we can cultivate contentment in a culture that
(00:31):
always craves more. And then it's on to your calls
at 805 two, five 7000. That's 805, two five 7000.
This is faith in finance. Live. Biblical wisdom for your
financial journey. Well, Jeff Manion is a good friend. He's
the teaching pastor of Ada Bible Church in Grand Rapids, Michigan,
(00:53):
and the author of several books, including Satisfied Discovering Contentment
in a World of Consumption. And that's our focus today.
And Jeff, we are so glad that you're with us.
S2 (01:03):
Rob, it's such a joy to be with you today.
S1 (01:06):
Thanks for making the time, Jeff. Early in your book, satisfied,
you write this wealth confuses me. I want to start there.
Why do you think that's an important place to start
this conversation and your writing?
S2 (01:19):
Oh my goodness, Rob, it's just such a moving target.
I mean, Chris and I started out in ministry when
we were 21, tiny little church at 25 people. And
by the way, if you're looking for a fast track
to financial freedom, do not take a church of 25
people that refuses to get off the ground. I mean,
Ada Bible Church is sizable today, but it took seven
(01:42):
years to get up to 100 people consistently. And so
we lived simply out of necessity. I mean, it was
just always barely enough. But the fast forward the tape
decades and, uh, the church is now sizable. We did
so many of the right things, set up an emergency fund,
studiously avoided debt, and yet still I wrestle with this
(02:09):
issue of contentment and sufficiency. And you would think, you know,
now that we're out of those days of shortage. Dude,
you must have nailed it. And I'm going. It is
an ongoing struggle. Learning contentment in, uh, financial status of
sufficiency is radically different than learning contentment in a season
of shortage.
S1 (02:29):
Yeah. But the common denominator for both is learning. And
we can learn in different environments. And one of those
environments you learned in you called the Desert Classroom. Share
that with our listeners.
S2 (02:41):
Yeah. And, uh, the Desert classroom, it refers to the Israelites.
They were enslaved for generations in Egypt. Right. And then
under the leadership of Moses, they go out into the
desert and they have this 40 year detour in the desert.
And that's why every day with this food substance called
manna and basically kept them alive in the desert. But, Rob,
(03:04):
then there's this fascinating for me, chilling and jarring conversation
that takes place just when they're ready to leave the desert.
And it's like Deuteronomy chapter eight. It's like when you
get into the land of promise, the promised Land, which
was often called the land flowing with milk and honey. Right?
I mean, they're going to trade in the desert for
(03:24):
rushing streams and growing grain and flourishing grapevines and pomegranates
and figs. And there's this warning. Don't forget the Lord
your God who brought you out of Egypt. And you think, well,
it would be automatic that their hearts would be drawn
to worship once they get into this season of sufficiency.
(03:46):
My friend, it's not. And it's like you're going to
get into the land of promise. You're going to get
into a nice house, your flocks and herds are going
to increase, and you're going to say, you know, I
think I did this. Yes. My strength did this for me.
And it's like, do not forget the Lord your God.
He is the one who even gives you the ability
to grow wealth. And so again, that's part of the
(04:06):
wealth confuses me thing. And just the the shifting target
is that when a financial status stabilizes, you've done the
right things. Debts paid off, the student loans are gone.
You know, maybe paying off your mortgage, given consistently to
your retirement fund. It's kind of like, okay, right there,
(04:27):
right there. That is a dangerous moment. And you need
to just double down on the journey of trust and
just remember, you know, I know where my stuff comes from.
S1 (04:38):
Yes. Wow. That is so powerful. Yeah. I'm thinking about
those Israelites about to face their most significant challenge prosperity.
What is it about prosperity that makes it so difficult
for us to understand the source of it and to
navigate it? Well, we're talking today with Jeff Manion about contentment.
(04:58):
It's a learned behavior, and we're going to try to
help you with some of that learning today. Jeff is
teaching pastor of Ada Bible Church in Grand Rapids, Michigan.
The book is called Satisfied Discovering Contentment in a World
of Consumption will continue to unpack it. Just around the corner.
And then your questions at 800 525 7000. Don't go anywhere.
(05:20):
We're just getting started. We're talking the secret to a
satisfied life. This is faith in finance. Live. I'm Rob
West with me today. My guest, Jeff Manion. He's teaching
(05:41):
pastor of Ada Bible Church in Grand Rapids, Michigan. And
I'm so thrilled to dive deep into his book today,
Satisfied discovering in a world of consumption. And, Jeff, before
the break, you were talking about what that looks like
And the journey of learning that and drawing from Scripture
and the Israelites. And, you know, in the book you
(06:03):
also share about your personal journey of decluttering. And I'm
sure that's a topic that resonates with a lot of
our listening audience. Why was that season so impactful for
you and what did you learn?
S2 (06:16):
Well, I think what happens is stuff, Rob stuff grows. Yes.
It's like it multiplies and reproduces and suddenly our lives
are filled with all this stuff. And I don't even
remember where some of this stuff came from. And so
I went through this seven week exercise where I gave
away five items a day for seven weeks is like
(06:37):
210 items. When I say when I say gave away,
I don't mean generosity. This was getting rid of three
dozen CDs. I didn't listen to CDs anymore. And there
they were, hibernating, you know, in a box in my basement, right?
A 40 piece dish set that we Donate it to
a housing center that we hadn't used in like 2
(06:58):
or 3 years and draw a t shirts. It's like
they followed me home from five-k races and conferences and events.
You know, it's village. And so, uh, 210 items later,
the experience I had was just number one coming in
contact with the stuff that inadvertently surrounded myself with. But, um,
(07:18):
just I felt 210 items lighter. I, I felt richer
for having less.
S1 (07:27):
Right. We can all really great reminder. All right, Jeff,
let's begin to dive into this idea of contentment a
little deeper. I know in the book you reference Paul's
words to Timothy Gain. Uh, what does that look like
in our lives today?
S2 (07:43):
Yeah. Uh, I think the the words that we are, um,
seduced by are the words there and then that is,
I will only be at peace there and then. I
will only be fully alive there. And then, when we're
able to break away from this monotonous routine and go
on vacation there. And then when you're able to get
out of this apartment and get into a house, when
(08:06):
we're able to renovate this outdated kitchen and get into,
you know, a different kitchen there, and then that's where
life is. That's where we can be fully alive. And
I think contentment is learning to be fully alive to God,
fully alive to the people around us here and now,
not there. And then I think a critical word is before, uh,
(08:27):
the more fully alive I am to God and people
while I am in the apartment, the more it is
likely that I'll be fully alive when we get in
the house, the more fully alive I am here now,
with imperfect people in an imperfect place, the more likely
I will be fully alive when we go on vacation
for a week. Uh, the more fully alive I am
(08:49):
without the renovation, the more fully alive will be after
the renovation. This renovation will not fix me. Yes, and
there is not a mountain of Amazon boxes large enough
waiting for me on my front porch to fill the
empty space that is in me. And so I call
it the School of Contentment, because in another place I
(09:11):
would say I have learned to be content. Yeah, I
think that's pivotal. It's not just that some people have
the contentment DNA and others don't. I've learned to be content,
whatever the circumstances. And by the way, those words were
written by an inmate. Yes. He was not where he
wanted to be. It's during a house arrest, imprisonment. And
he goes, I had to learn to be content, whatever
the circumstance is. And so I think when we're in.
(09:35):
So contentment is not gained by getting what we want, contentment.
We arrive at contentment through having this joy and peace
and being alive even when we don't get what we want.
And I think it positions us to have extreme joy
if the day comes and when the day comes, when
we do get what we want. I think it's a powerful,
powerful force.
S1 (09:54):
It sure is. Boy, we could finish right there. And
we've learned everything we need here and now. Not there
and then. But we're going to keep going. Jeff, let's
talk about the comparison trap. You talk about comparison as
a major barrier to contentment. Why is comparison in particular
so spiritually damaging? And why do you think we struggle
with it so much?
S2 (10:15):
Yeah. You know, Teddy Roosevelt, I don't know if he
actually said it, but he's credited as saying comparison is
a thief of joy. I don't know whether Teddy Roosevelt
said it, but I believe it's true because, uh, Rob,
there's always someone with a bigger boat. Yes, a better
landscaped yard. Right. Uh, a longer, uh, five star vacation.
(10:38):
And what comparison does is it causes my heart to
focus on what is being withheld, rather than focusing on
the blessings that are bombarding my life day after day
after day. And by the way, if this was a
problem 30 years ago. Yeah, multiply that by ten now.
S1 (10:56):
That's right.
S2 (10:57):
Because of social media? Yes. Because during my life, to
somebody else, I'm comparing my life to somebody, not reality
to my impression of their reality. And it can shrivel
the heart and it can kill generosity, because generosity comes
from the sense of abundance that I am given. Much abundance,
(11:18):
meaning more than enough. I have more than enough. That's
the fountain from which generosity flows. And so when I
am looking around at my life and I go, not enough,
not enough, not enough, uh, it will cripple generosity and
it'll cripple joy.
S1 (11:32):
Uh. So good. Let's go there next. Because you're right. Giving,
we say, often breaks money's grip over our lives and
over our hearts. Why is that so powerful?
S2 (11:43):
Well, it's interesting that that famous passage, I just it's
my key passage on, uh, how to deal with my
wealth in an appropriate way. First Timothy where Paul writes
to the younger pastor. Command those who are rich in
this present world not to be arrogant or to put
their hope in wealth which is so uncertain, but to
(12:03):
put their hope in God, who richly provides us with
everything for our enjoyment, and then rob right after that,
command them to do good, to be rich in good deeds,
to be generous and willing to give. And I think
that be generous and willing to give. What Paul is
pointing at there is that when we open our hands,
it is a reflection of the generosity of God, the
(12:24):
God who was generous first in creation and in Christ.
And as we begin to reflect his generosity, wealth can
begin to lose its stranglehold as the source of joy
and identity in my life.
S1 (12:39):
Mhm. Wow. Well, Jeff, no doubt we want this for ourselves.
We also want this for our kids. We have just
a minute left. How do we begin to pass this down?
This deeper Legacy of living a truly satisfied life.
S2 (12:53):
You know, I thought this was an important as a dad,
and now I, you know, a couple, you know, we have,
you know, five grandchildren now. And I think it's what's
court values are court. And I just hope that my
children and grandchildren observe that, Chris and I, that our
greatest joy is not new and better stuff. That's just
a story too small. Yeah. And I hope they can
(13:14):
see the source of the lives of generosity that we pursue,
and that is that it just imitates the generosity of
God for us when we are generous. It's like it's
reflecting the DNA of Christ that's been implanted within us.
S1 (13:27):
Oh, Jeff, man. Incredible stuff. Well, listen, folks, uh, I'm
sure you've picked up on it, and we've only scratched
the surface. You need to read. Satisfied discovering contentment in
a world of consumption. It will be a game changer,
my friend. Thanks for being with us today.
S2 (13:44):
So grateful for these moments.
S1 (13:47):
That's Pastor Jeff Manion again. The book is called Satisfied
Discovering Contentment in a World of Consumption, available wherever you
Buy books. Back with your calls at 800 525 7000.
This is faith and finance. Biblical wisdom for your financial journey.
Stick around.
S3 (14:14):
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 (14:35):
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. That number. Yeah you know it by now.
800 525 7000. Any financial question? 805 257. Oh, boy.
What a treat to have my friend Jeff Manion from
Ada Bible Church in today. If you've not read this far,
(14:56):
pick it up wherever you buy books. It's a game changer.
You know, this idea of contentment is one of God's
big ideas around money that we need to really understand.
And as the Apostle Paul reminds us, we don't. We
don't have contentment. Naturally, it is a learned behavior. And
it's for the reasons that that Pastor Jeff talked about today.
You know, we have got to understand how difficult the
(15:21):
comparison trap is and how it will pull us in,
and how we can always find somebody with a little
bit justify why we continue to strive and without, you know,
without even realizing it, find our value and our worth
and our security and the things of this world, our
bank accounts and our 401 s, and we strive after
the next luxury item. And there's nothing wrong with enjoyment. Remember,
(15:45):
one of God's good gifts is money. He created it.
He created delight and joy. And we are to take
what he's entrusted to us and we are to enjoy it.
And that includes giving it away. But it also includes
celebrating and investing in our family and providing. Those are
good things. But we've got to live within God's provision.
And this idea that Pastor Jeff shared about here and now,
(16:07):
not there, and then that we need to be fully
present here and now and not saying no, I'll be happy.
I'll be satisfied when I reach that or when I
get this, or when I get to that next home,
then everything will be okay. No, you're always going to
be striving after that next thing. So what if you're
fully present and content right where God has you today,
(16:29):
and then when he blesses and you're faithful and a little,
you'll be faithful in much. But if we can't be
satisfied and content where God has us today, we will
never be satisfied. No matter what God gives us. Think about,
meditate on, pray about what you heard from Pastor Jeff today.
I know I will be all right. Let's take your
phone calls today. The lines are filling up, but we
do have room for you at the moment. 800 525 7000.
(16:54):
Any financial question today you can call right now. Let's
go to Rome, Georgia. Hi, Greg. Go ahead.
S4 (17:00):
Okay. Uh, I have two questions concerning Roth. Uh, I
won't retire next year. I'm either going to work, like,
three months or six months, and what I the first
question is, will I still be able to contribute to
Roth after I retire?
S1 (17:18):
Yes, sir. You can, so long as you have earned income.
And Social Security is not earned income. So earned income
is wages, self-employment consulting. So if you have any earned
income for the year up to the limit for the year,
which if you're over the age of 50, you could
(17:39):
put in $8,000 for 2025. So as long as you
have $8,000 for 2025, you can make that Roth contribution
as long as you have earned income up to the limit,
and that will continue to be in the future. What
doesn't count toward earned income? I already mentioned Social Security.
Also pension income, uh, investment income, you know, so if
(18:02):
you're fully retired without earned income, then you cannot contribute.
But if you're still working part time or running a
small business, then you're good to go. Or if you
worked part of the year and you brought in enough
income before you retired, um, that you would, you know,
be able to fund up to the limit, then you
would be able to do that as well.
S4 (18:23):
So how much income would I have to to make to,
to qualify for that?
S1 (18:29):
Only up to the limit of what you can put
into a Roth IRA for the year. So for the
year 2025, the most you can put in as a
person who's 50 or older is $8,000. So if you
have at least 8000 and earned income for the year,
then you can fully fund the wrath for this year.
S4 (18:48):
But once I've retired and don't have any income other
than I'll have company pensions and social security, but that
that won't count, right?
S1 (18:58):
That's correct. For Social Security and pension are not earned income.
S4 (19:03):
Okay. And the last question is when I start drawing
it out, will I have to pay any taxes?
S1 (19:09):
No, sir. If it's a Roth IRA, you've already paid
the tax. And as long as that account's been open
at least five years, and as long as you're over 59.5,
you can pull that money out. Your original contributions and
all the gain without any tax whatsoever.
S4 (19:26):
Okay. That'll do it then. And thank you a lot.
And you have a blessed day.
S1 (19:30):
Well. And you too, Greg. Call anytime, sir. Saint Louis,
Missouri is where we're headed next. James. Go ahead.
S5 (19:36):
Yeah. Hi. Thanks for your, uh, your, um, faithful work there.
I have a lot of credit card debt, and I
wondered if I thought about calling some of these, like
National Debt Relief or Trinity or somebody. You know, I
don't want to do anything unbiblical where I don't pay
my obligations, but at the same time, I need some assistance.
S1 (20:00):
Yeah. Uh, absolutely. You know, I like these programs a lot.
In fact, James, this is my preferred way to get
out of debt. And my rule of thumb is, if
you've got more than 4000 in credit card debt, then
debt management is the way to go. Uh, Trinity is
certainly one of them. An underwriter at, um, you know,
our long time partner here at Faith fi is Christian
(20:21):
Credit Counselors. They've worked with thousands of our listeners, both
very reputable, non non-profit, faith based organizations that are good
for people with more than 4000 in debt. Here's why
I like debt management. Uh, number one, the debt stays
right where it is. You're not putting a new loan
in place to roll up old debt or close out loans.
(20:42):
By refinancing, it stays right where it is. The interest
rate drops, the rate's going to go down to between
0 and 12%, not 20 to 22 or higher where
it is now. They'll give you one level monthly payment.
It doesn't decline as the balance is decline. And the
combination of that level payment, plus the reduction in interest
(21:03):
will allow you to pay that off 80% faster on average.
I think it's the only way to go now. The
card will be closed. Any cards in the program will
be closed while they're in the program. But I'll tell you,
the testimonies we hear from these organizations are phenomenal. They're
all believers. They'll pray with you. They'll help you create
your budget. They'll get you set up. So if you
(21:23):
want to connect with Christian credit counselors, go to Christian
Credit counselors.org. Just promise me you'll call me once you
pay it off. God bless you, James. We'll be right back.
Helping you see God is your ultimate treasure. This is
(21:44):
faith and finance here on Moody Radio. We're so glad
you're with us today. We've got four lines open. Any
financial question today? 800 525 7000. Let's head to North Carolina. Hi, Joy.
How can I help?
S6 (21:57):
Yeah. Um, I have $4,000 in savings in a discover bank.
And I'm just wondering, I have a Vanguard account, and
I'm wondering if I should switch it over to the
Vanguard account. And, um, you know, they're both. They're both
about the same in terms of interest, I think, um,
and I'm is is the discover Vanguard says it's high
(22:22):
yield savings. I'm wondering if discover is in that same category. Um.
S1 (22:29):
Discover is certainly known for having high interest rates, typically,
although any one could be higher or lower than another
in any given time. Uh, what is the rate you're
earning right now? Do you know?
S6 (22:41):
I think it's 3.5.
S1 (22:44):
Okay. Yeah, you can do better than that. I mean,
you could certainly look at Vanguard at one of their
money markets. You may be able to get upwards of 5%,
perhaps even more. You know, another option would be, um,
our friends at Christian Community Credit Union, up to $5,000.
They have, uh, their high yield. They call it their harvest,
(23:04):
high yield checking. So this would be a banking partner
that would be aligned with your values. They are a
credit union for Christians, and they're offering 5% right now
on that high yield savings, which means it's fully liquid.
It's insured. And you'd have access to it with the
click of a button by transferring it back to your
checking account at any time. And they're doing that specifically
(23:27):
for Faith fi listeners with the keyword Faith fi. You'd
get up to $400 added to it when you open it,
so that would be another option. I think you could
certainly look at moving it to Vanguard. You could also
look at Christian Community Credit Union, but you clearly can
do better, you know, than three and a half. I
think you should be able to get upwards of 5%.
If you wanted to check out Keikyu, just go to Faith.
(23:52):
That's faith. But there are higher rates available that are
very safe and highly liquid.
S6 (24:00):
Okay. And, uh, I had another question about my money
that's in the settlement fund in Vanguard. Is that a
good place for money? Because it sounds like it's not
doing anything. It's just there.
S1 (24:12):
Yeah. Tell me more about that account.
S6 (24:15):
I don't know, I don't. Every time I hear the
word settlement, it sounds like it's not really actively invested.
It's just there.
S1 (24:25):
Yeah, yeah. Basically what happens is that's other firms call
that a sweep account. But basically what they're probably talking
about is that, you know, money sits there temporarily when
you sell investments or transfer cash into the account. and
it's usually there, you know, at Vanguard it would be
there Vanguard Money Market Fund and it is paying some interest. Um,
(24:50):
you know, so it's just kind of how all these
brokerage firms work, um, you know, and it's a temporary
holding vehicle that's very safe. And it's just because money's
moving in and out of the investments, and when it
hits the account, because you make a deposit or you
liquidate an investment, it lands in that settlement fund. And,
(25:12):
you know, that's probably earning, you know, north of 4%. Um,
and so I think that that's completely fine.
S6 (25:20):
Okay. All right. Well, I thank you very much for
answering these questions. They've been bothering me.
S1 (25:26):
Okay.
S6 (25:27):
I will check that out. Bye bye.
S1 (25:29):
Sounds great. Call anytime. Joy. God bless you. Let's go
to Tennessee. Hi, Kim. Go ahead.
S7 (25:34):
Hello. Um, I received my husband's social security after he
passed away. And next year I'll be receiving his pension. Uh,
will the pension payment lower the Social Security benefit?
S1 (25:49):
No, it should not. Uh, you know, receiving a pension
does not reduce your Social Security survivor's benefits. As long
as the pension is from a job where your husband
paid into Social Security. Now, even that has changed with,
you know, them doing government pension offset. But was he
a government employee?
S7 (26:09):
No.
S1 (26:09):
Okay. Yeah. So as long as he is getting benefit
or was getting benefits as a result of paying in
to Social Security, you're now receiving those benefits as survivor's benefits.
Basically what he was receiving pension income has no bearing
on that whatsoever.
S7 (26:27):
Thank you. That takes a load off.
S1 (26:29):
I'm so glad. All the best to you. Kim, thanks
for your calling. And, uh, I'm so sorry to hear
about your husband's passing call anytime. Well, folks, uh, we're
taking your calls and questions today, helping you navigate, uh,
managing God's money. We realize that there could be a
lot of times just all the decisions. Finance seems complex,
and we want to try to make it simple, dealing
(26:50):
with both the heart side of money, how it can
rival our hearts for first position in our lives, and
the how to's, you know, the practical decisions. It's it's
kind of like an iceberg, you know, think about an
iceberg for a second. Only about 10% of the mass
of the iceberg is above the water line. That's the
how of financial decision making, the money market funds and
(27:11):
the CDs and the investments. And, you know, do I
use a debt management program? Again, that's probably only about 10%
the the biggest mass of the iceberg, the other 90%
you can't see because it's below the water line. And
that really is the why of financial decision making. It's
your values. It's understanding the heart of God. It's understanding
(27:31):
that God owns it all and we're stewards. It's understanding
that money is a good gift. I mean, all of
these things really play into ultimately the decisions we make
above that water line. But we've got to start there
and really understand God's intent for the money that he
has entrusted to us. I hope we help you each
day with that on this program, both the why and
(27:52):
the how. Let's deal with Pauline's question in Illinois. Pauline.
Go ahead.
S8 (27:57):
Hi. My question is I recently refinanced my home and
what I did, I paid off all the house. And
now what I want to find out, is it better
to pay the mortgage once a month or twice a month?
S1 (28:14):
Yes.
S8 (28:14):
Paying extra on it. So you know what I'm saying.
So since we since it's new, I'm just trying to
figure out which way to go about paying it and
paying it off. Yes. You know, sooner than year.
S1 (28:27):
Are they offering you something called a biweekly plan, or
are you just asking about something that you would do
on your own?
S8 (28:34):
Oh no, they they're offering it so you can pay
it once a month. You can pay biweekly or you
can pay it every two weeks. So that's that's an
offer that they have.
S1 (28:44):
Yeah. Yeah. Well the bi weekly payment actually can, can
be very effective. And here's how that works. You see,
if you pay every two weeks instead of once a
month or splitting the payment and playing, you know, half
twice a month, if you instead pay a half a
payment every two weeks, you will end up making 13
(29:07):
full payments because there's, uh, you will make a half
an extra payment every 26 weeks. And then over a
year you'll make a full payment. And so that 13
full payments instead of 12 can cut years off your loan.
I mean, it can just one extra payment a year.
Going to principal can take you from a 30 year
(29:27):
mortgage to a 26, and you'll save tens of thousands
in interest. But if it's really just cutting the payment
in two and sending it twice a month. There's really
no benefit unless the creditor credits the payment right away.
So if they credit the half payment and then they
don't charge you interest on it for the next two
(29:49):
weeks until you make the next payment. Over time, that
can result in you paying a lot less. But if
they're going to apply it all at the end of
the month, it's really no different. So I would say
either just pay once a month or if you can
do the every two week bi weekly payment and end
up paying an extra half payment a year or every
(30:10):
six months, a total of one full payment a year,
that can go a long way to helping you get
this paid off. Bottom line though. Anytime you send extra,
it's going right to principal and that's going to serve
you very well. Pauline, thanks for your call. Congrats on
that new home purchase. We'll be right back. Great to
(30:36):
have you with us today on Faith and finance live
here in our last segment today. Let's head right back
to the phones. Uh, Illinois is where Linda is located. Linda,
go right ahead.
S9 (30:45):
Hello, Rob, and thank you very much for taking my call.
And I really do appreciate your show. Thank you. My
question is real quick. Uh, if I have a living
will and I should when I die. And if what? What?
My assets have to still go through probate because I
have this living will or not.
S1 (31:04):
Yeah, well, it really depends on what you mean by that.
So a living will doesn't avoid probate. That outlines your
medical wishes. If you're incapacitated, do you by chance mean
a living trust.
S9 (31:19):
Or.
S1 (31:20):
Or just a last will and testament?
S9 (31:23):
Yeah, it's a living will. It's not a living trust.
S1 (31:26):
Okay. But a living will is. Go ahead.
S9 (31:30):
I'm sorry, but in the language it does says all
assets would go to upon my death would go to
my beneficiary, which is my son. And he's my only
my only child.
S1 (31:42):
Got it? Yes. Okay, so let me just draw a
little distinction here. And it's it's just one little word,
but it's important just to make sure you're clear. So
a living will says what medical care you want. If
you can't speak for yourself, it has to do with
life support and feeding tubes and end of life decisions. Uh,
a will without the word living in front of it.
(32:04):
Just a will. What's often called a last will and
testament that says who gets your stuff when you die?
Your property, your money, guardianship for kids, and so forth. Now,
with a will versus a trust, let's say, um, your
personal property and the money. And, you know, the other
(32:26):
decisions will even though you've said it all goes to
your son, it will go through probate. Uh, unless there's
a beneficiary designation. So for instance, you might have a
401 or an IRA or an investment account and you've
named your trust or excuse me, you've named your son
as the beneficiary. That will go directly to your son.
(32:46):
But anything that does not have a beneficiary, then your
will is what determines where it goes. But with a will,
it does through go through probate, which just simply means
there's going to be probate costs involved and there's going
to take time. While the probate court works with the
executor to distribute the assets. It's not going to happen
(33:08):
right away, which is why often people will put a
living trust in place because they don't want to go
through probate. Does that answer your question, though?
S9 (33:19):
Yeah it does. So but again, I want to just go.
You said if everything I have I have a beneficiary
and most of most of what I have is liquid. So, uh,
my son is the beneficiary on all of these vehicles
that I have as far as my Roth, my IRA
(33:40):
and I have a couple of annuities.
S1 (33:43):
Yes. And so if those which they do, if those
have up to date beneficiaries and your son is named
as beneficiaries, all those investment accounts you just mentioned and
perhaps life insurance, things like that, that would go outside
of probate directly to your son. The big one that
that is going to go through probate, which is going
to take some time unless you have a will or
(34:06):
some other mechanism in place, is your home. Your home
would pass according to your will, and that would have
to run through probate before your before your son had
access to it.
S9 (34:18):
Okay, well I rent. Matter of fact, I rent from
my son. He owns property, so.
S1 (34:23):
Well, there you go. So it doesn't sound like as
much of an issue there.
S9 (34:26):
Right. Okay. All right, well, I appreciate you taking the
time to answer my question. God bless and have a
nice day.
S1 (34:31):
Yes, ma'am. You two call anytime. Let's go to Miami, Florida. Hi, Angela.
Go ahead.
S10 (34:37):
Oh, thank you so much, Rob, for taking my call.
I have a question here. I have a long term policy.
I've had it since 2018, and the premiums are like
12,000 a year. I'm paying into it. And the last
time I talked to my advisor, they told me I
have 400 and like 400,000. Ballpark figure. But what I
(34:59):
didn't know, she's telling me it doesn't go in effect
until after I'm six months sick, which I think is
a long time. So I'm trying to see if I
should get rid of this policy and another policy. Or
is that the normal for most long term care policy?
S1 (35:14):
Yes. Well, what you're describing is pretty customary, but it
is on the longer end of what's called the elimination period.
So that six month wait is what's called an elimination period.
And basically it's like a deductible. So it's a waiting
period before the benefits kick in. And that waiting period
(35:37):
is usually between 30 and 180 days. And in your
case it's 180. Um, which again is on the kind
of the, the, the longer end of that typical range.
So during that time you have to pay for your
care out of pocket, even though you're eligible for $400,000
in benefits, you can't get to it until you get
(35:58):
past essentially your deductible, which is that six month waiting period. Now,
the reason why you want that, perhaps, is because that
helps to keep your premiums the lower, because if you
have a much smaller waiting period where it kicks in
much sooner, you're probably going to have much higher premiums, uh,
(36:19):
right now while you're paying into this policy. So the
key for you with a longer waiting period is to
make sure you have the staying power in other assets.
So let's say full nursing care, which is probably the
most extreme situation that in terms of cost, let's say
it's going to run you $100,000 a year in round numbers.
(36:40):
So you're going to have to be able to wait
six months, which could cost you 50 grand. But if
you've already got that in investments or in a savings
account or you know somewhere else and you could fund
that out of pocket, and then all of a sudden
your policy kicks in and it'll pay for years. And
until the Lord calls you home up to $400,000, well,
(37:01):
that's not bad. Especially if it allows you to keep
this policy in force because the premiums are not cost prohibitive. Which,
by the way, premiums on long term care policies have
been increasing as the cost of health care increases. And
so a lot of people are having to drop them
because they can't afford them anymore. And perhaps this longer
waiting period is what's making yours able to, you know,
(37:24):
something you can continue to afford, if that makes sense.
S10 (37:28):
Yeah. Yeah. It makes sense. And I know that most
of them are, like, from 30 to 180 days, though. Oh, okay.
And if I go get a 30 day one that
kicks in, I'm probably paying a higher premium.
S1 (37:40):
Well that's right. Plus you're older now. How old are you? Uh.
S10 (37:44):
I am 67, and I have three quarter.
S1 (37:47):
Yeah. And when did you get this policy?
S10 (37:50):
In 2018.
S1 (37:51):
Yeah. See, so you typically want to get it between
55 and 65. And you're beyond that now. So you'd
kind of have a double whammy in the sense that
you'd be shortening the elimination period. And you know, now
you're seven years older. And so the premium would be
quite a bit higher to the point where you might say,
either it's not worth it or I can't afford it.
S11 (38:16):
All right. Well, thank you so much. I guess I
end up.
S10 (38:19):
Keeping it then. All right.
S11 (38:20):
Yeah.
S1 (38:20):
Yeah. And I think the key is just plan on
the fact that you're going to need to fund that
first six months so you don't get caught off guard
on that. And that's going to come by way of
your savings or your investments. Angela, thanks for your call today.
Let's go to Fort Myers. Scott. Go ahead.
S4 (38:36):
Yes. Rob, I.
S12 (38:37):
Had a quick question for you. Um, I'm on SSDI. Um,
I've been on it for about 5 or 6 years.
I've had a ton of health problems. My question is,
can I fund a IRA or contribute to my IRA
even though I'm on SSDI?
S1 (38:52):
Uh, do you have any earned income?
S12 (38:56):
Uh, I have a part time job. I make around
$1,400 a month. Yes, sir.
S1 (39:01):
Yeah. So if you you can use that earned income, uh,
in the sense that. So the SSDI does not count
as earned income, but wages from a part time job do.
So if you earn, at least, um, you know, $7,000
if you're under 50 or 8000 if you're 50 or older,
then you could use that to fund a Roth IRA
(39:23):
up to the limit for the year.
S12 (39:25):
Okay, I'm 52, so I could fund it up to 8000.
Is that correct?
S1 (39:29):
Yes. The only question would just be, you know, and
I assume you're you're tapped into this, but you need
to make sure your part time earnings don't jeopardize your
SSDI eligibility with what they call substantial gainful activity, which
I think is around 1500, 1600 a month, something like that.
S12 (39:46):
Yeah, yeah, it goes up a little bit every year. Yeah,
I'm familiar with that. One other question. When I had
my when I had my really good job and made
good money, my, my financial advisor wanted me to open
up a not a I think he had me in
an IRA. Then he had me open up a Roth
IRA because of some different law. And I don't remember
why he did that. Would you have a reason why?
(40:07):
That's why he probably did that.
S1 (40:09):
Yeah, it's probably what's called a backdoor IRA. Do you
remember that term?
S12 (40:13):
I think that does ring a bell. Yes, sir.
S1 (40:16):
Yeah. So what happens is when you earn over the limit,
there's a there's a cap, uh, you know, in terms
of your max income that you can afford, uh, to
be able to be eligible to contribute to a Roth IRA.
So for this year, you know, that, uh, upper end
cap is, I believe, you know, if you're married, filing jointly,
(40:39):
like 236,000, if you're single or head of household, 150,000.
When you get over that, you're no longer eligible to
fund a Roth IRA. But there is something that's in
the tax code that's fully legitimate. It's a little bit
of a loophole where you can fund, you can make
a nondeductible IRA traditional IRA contribution, and then you can
(41:02):
convert it to a Roth. And so it's essentially a
back door way to get money into a Roth to
grow tax free, even though you don't meet the eligibility
because you earn, uh, you know, too much money.
S12 (41:15):
No, that's probably what it was. I was making really
good money, and he did it as an advantage for me. So. Yeah. Yeah. Hey,
I really appreciate the clarification, Rob. Thanks a lot.
S1 (41:22):
All right. Absolutely. Scott, we appreciate your call today. Hey, folks. Uh,
so glad to have you along with us today. Let
me take just a moment and invite you to, uh,
be a supporter here at Faith. Fi, you know, this
ministry that we bring to you every day through this
radio broadcast and our studies and devotionals and our app
and on the new faith comm coming this fall with
(41:42):
all of our new beautiful content that's just rich theologically
and will help you, uh, explore your money journey according
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(42:06):
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serving us today. We'll see you tomorrow.
The world constantly tells us you need just a little
bit more. But what if real peace isn't found in
having more, but in learning to need less? I am
Rob West. What comes to mind when you hear the
word wealth? For some it means freedom. For others, it
brings anxiety and pressure. Today, Jeff Manion joins us to
explore how we can cultivate contentment in a culture that
(00:31):
always craves more. And then it's on to your calls
at 805 two, five 7000. That's 805, two five 7000.
This is faith in finance. Live. Biblical wisdom for your
financial journey. Well, Jeff Manion is a good friend. He's
the teaching pastor of Ada Bible Church in Grand Rapids, Michigan,
(00:53):
and the author of several books, including Satisfied Discovering Contentment
in a World of Consumption. And that's our focus today.
And Jeff, we are so glad that you're with us.
S2 (01:03):
Rob, it's such a joy to be with you today.
S1 (01:06):
Thanks for making the time, Jeff. Early in your book, satisfied,
you write this wealth confuses me. I want to start there.
Why do you think that's an important place to start
this conversation and your writing?
S2 (01:19):
Oh my goodness, Rob, it's just such a moving target.
I mean, Chris and I started out in ministry when
we were 21, tiny little church at 25 people. And
by the way, if you're looking for a fast track
to financial freedom, do not take a church of 25
people that refuses to get off the ground. I mean,
Ada Bible Church is sizable today, but it took seven
(01:42):
years to get up to 100 people consistently. And so
we lived simply out of necessity. I mean, it was
just always barely enough. But the fast forward the tape
decades and, uh, the church is now sizable. We did
so many of the right things, set up an emergency fund,
studiously avoided debt, and yet still I wrestle with this
(02:09):
issue of contentment and sufficiency. And you would think, you know,
now that we're out of those days of shortage. Dude,
you must have nailed it. And I'm going. It is
an ongoing struggle. Learning contentment in, uh, financial status of
sufficiency is radically different than learning contentment in a season
of shortage.
S1 (02:29):
Yeah. But the common denominator for both is learning. And
we can learn in different environments. And one of those
environments you learned in you called the Desert Classroom. Share
that with our listeners.
S2 (02:41):
Yeah. And, uh, the Desert classroom, it refers to the Israelites.
They were enslaved for generations in Egypt. Right. And then
under the leadership of Moses, they go out into the
desert and they have this 40 year detour in the desert.
And that's why every day with this food substance called
manna and basically kept them alive in the desert. But, Rob,
(03:04):
then there's this fascinating for me, chilling and jarring conversation
that takes place just when they're ready to leave the desert.
And it's like Deuteronomy chapter eight. It's like when you
get into the land of promise, the promised Land, which
was often called the land flowing with milk and honey. Right?
I mean, they're going to trade in the desert for
(03:24):
rushing streams and growing grain and flourishing grapevines and pomegranates
and figs. And there's this warning. Don't forget the Lord
your God who brought you out of Egypt. And you think, well,
it would be automatic that their hearts would be drawn
to worship once they get into this season of sufficiency.
(03:46):
My friend, it's not. And it's like you're going to
get into the land of promise. You're going to get
into a nice house, your flocks and herds are going
to increase, and you're going to say, you know, I
think I did this. Yes. My strength did this for me.
And it's like, do not forget the Lord your God.
He is the one who even gives you the ability
to grow wealth. And so again, that's part of the
(04:06):
wealth confuses me thing. And just the the shifting target
is that when a financial status stabilizes, you've done the
right things. Debts paid off, the student loans are gone.
You know, maybe paying off your mortgage, given consistently to
your retirement fund. It's kind of like, okay, right there,
(04:27):
right there. That is a dangerous moment. And you need
to just double down on the journey of trust and
just remember, you know, I know where my stuff comes from.
S1 (04:38):
Yes. Wow. That is so powerful. Yeah. I'm thinking about
those Israelites about to face their most significant challenge prosperity.
What is it about prosperity that makes it so difficult
for us to understand the source of it and to
navigate it? Well, we're talking today with Jeff Manion about contentment.
(04:58):
It's a learned behavior, and we're going to try to
help you with some of that learning today. Jeff is
teaching pastor of Ada Bible Church in Grand Rapids, Michigan.
The book is called Satisfied Discovering Contentment in a World
of Consumption will continue to unpack it. Just around the corner.
And then your questions at 800 525 7000. Don't go anywhere.
(05:20):
We're just getting started. We're talking the secret to a
satisfied life. This is faith in finance. Live. I'm Rob
West with me today. My guest, Jeff Manion. He's teaching
(05:41):
pastor of Ada Bible Church in Grand Rapids, Michigan. And
I'm so thrilled to dive deep into his book today,
Satisfied discovering in a world of consumption. And, Jeff, before
the break, you were talking about what that looks like
And the journey of learning that and drawing from Scripture
and the Israelites. And, you know, in the book you
(06:03):
also share about your personal journey of decluttering. And I'm
sure that's a topic that resonates with a lot of
our listening audience. Why was that season so impactful for
you and what did you learn?
S2 (06:16):
Well, I think what happens is stuff, Rob stuff grows. Yes.
It's like it multiplies and reproduces and suddenly our lives
are filled with all this stuff. And I don't even
remember where some of this stuff came from. And so
I went through this seven week exercise where I gave
away five items a day for seven weeks is like
(06:37):
210 items. When I say when I say gave away,
I don't mean generosity. This was getting rid of three
dozen CDs. I didn't listen to CDs anymore. And there
they were, hibernating, you know, in a box in my basement, right?
A 40 piece dish set that we Donate it to
a housing center that we hadn't used in like 2
(06:58):
or 3 years and draw a t shirts. It's like
they followed me home from five-k races and conferences and events.
You know, it's village. And so, uh, 210 items later,
the experience I had was just number one coming in
contact with the stuff that inadvertently surrounded myself with. But, um,
(07:18):
just I felt 210 items lighter. I, I felt richer
for having less.
S1 (07:27):
Right. We can all really great reminder. All right, Jeff,
let's begin to dive into this idea of contentment a
little deeper. I know in the book you reference Paul's
words to Timothy Gain. Uh, what does that look like
in our lives today?
S2 (07:43):
Yeah. Uh, I think the the words that we are, um,
seduced by are the words there and then that is,
I will only be at peace there and then. I
will only be fully alive there. And then, when we're
able to break away from this monotonous routine and go
on vacation there. And then when you're able to get
out of this apartment and get into a house, when
(08:06):
we're able to renovate this outdated kitchen and get into,
you know, a different kitchen there, and then that's where
life is. That's where we can be fully alive. And
I think contentment is learning to be fully alive to God,
fully alive to the people around us here and now,
not there. And then I think a critical word is before, uh,
(08:27):
the more fully alive I am to God and people
while I am in the apartment, the more it is
likely that I'll be fully alive when we get in
the house, the more fully alive I am here now,
with imperfect people in an imperfect place, the more likely
I will be fully alive when we go on vacation
for a week. Uh, the more fully alive I am
(08:49):
without the renovation, the more fully alive will be after
the renovation. This renovation will not fix me. Yes, and
there is not a mountain of Amazon boxes large enough
waiting for me on my front porch to fill the
empty space that is in me. And so I call
it the School of Contentment, because in another place I
(09:11):
would say I have learned to be content. Yeah, I
think that's pivotal. It's not just that some people have
the contentment DNA and others don't. I've learned to be content,
whatever the circumstances. And by the way, those words were
written by an inmate. Yes. He was not where he
wanted to be. It's during a house arrest, imprisonment. And
he goes, I had to learn to be content, whatever
the circumstance is. And so I think when we're in.
(09:35):
So contentment is not gained by getting what we want, contentment.
We arrive at contentment through having this joy and peace
and being alive even when we don't get what we want.
And I think it positions us to have extreme joy
if the day comes and when the day comes, when
we do get what we want. I think it's a powerful,
powerful force.
S1 (09:54):
It sure is. Boy, we could finish right there. And
we've learned everything we need here and now. Not there
and then. But we're going to keep going. Jeff, let's
talk about the comparison trap. You talk about comparison as
a major barrier to contentment. Why is comparison in particular
so spiritually damaging? And why do you think we struggle
with it so much?
S2 (10:15):
Yeah. You know, Teddy Roosevelt, I don't know if he
actually said it, but he's credited as saying comparison is
a thief of joy. I don't know whether Teddy Roosevelt
said it, but I believe it's true because, uh, Rob,
there's always someone with a bigger boat. Yes, a better
landscaped yard. Right. Uh, a longer, uh, five star vacation.
(10:38):
And what comparison does is it causes my heart to
focus on what is being withheld, rather than focusing on
the blessings that are bombarding my life day after day
after day. And by the way, if this was a
problem 30 years ago. Yeah, multiply that by ten now.
S1 (10:56):
That's right.
S2 (10:57):
Because of social media? Yes. Because during my life, to
somebody else, I'm comparing my life to somebody, not reality
to my impression of their reality. And it can shrivel
the heart and it can kill generosity, because generosity comes
from the sense of abundance that I am given. Much abundance,
(11:18):
meaning more than enough. I have more than enough. That's
the fountain from which generosity flows. And so when I
am looking around at my life and I go, not enough,
not enough, not enough, uh, it will cripple generosity and
it'll cripple joy.
S1 (11:32):
Uh. So good. Let's go there next. Because you're right. Giving,
we say, often breaks money's grip over our lives and
over our hearts. Why is that so powerful?
S2 (11:43):
Well, it's interesting that that famous passage, I just it's
my key passage on, uh, how to deal with my
wealth in an appropriate way. First Timothy where Paul writes
to the younger pastor. Command those who are rich in
this present world not to be arrogant or to put
their hope in wealth which is so uncertain, but to
(12:03):
put their hope in God, who richly provides us with
everything for our enjoyment, and then rob right after that,
command them to do good, to be rich in good deeds,
to be generous and willing to give. And I think
that be generous and willing to give. What Paul is
pointing at there is that when we open our hands,
it is a reflection of the generosity of God, the
(12:24):
God who was generous first in creation and in Christ.
And as we begin to reflect his generosity, wealth can
begin to lose its stranglehold as the source of joy
and identity in my life.
S1 (12:39):
Mhm. Wow. Well, Jeff, no doubt we want this for ourselves.
We also want this for our kids. We have just
a minute left. How do we begin to pass this down?
This deeper Legacy of living a truly satisfied life.
S2 (12:53):
You know, I thought this was an important as a dad,
and now I, you know, a couple, you know, we have,
you know, five grandchildren now. And I think it's what's
court values are court. And I just hope that my
children and grandchildren observe that, Chris and I, that our
greatest joy is not new and better stuff. That's just
a story too small. Yeah. And I hope they can
(13:14):
see the source of the lives of generosity that we pursue,
and that is that it just imitates the generosity of
God for us when we are generous. It's like it's
reflecting the DNA of Christ that's been implanted within us.
S1 (13:27):
Oh, Jeff, man. Incredible stuff. Well, listen, folks, uh, I'm
sure you've picked up on it, and we've only scratched
the surface. You need to read. Satisfied discovering contentment in
a world of consumption. It will be a game changer,
my friend. Thanks for being with us today.
S2 (13:44):
So grateful for these moments.
S1 (13:47):
That's Pastor Jeff Manion again. The book is called Satisfied
Discovering Contentment in a World of Consumption, available wherever you
Buy books. Back with your calls at 800 525 7000.
This is faith and finance. Biblical wisdom for your financial journey.
Stick around.
S3 (14:14):
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 (14:35):
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. That number. Yeah you know it by now.
800 525 7000. Any financial question? 805 257. Oh, boy.
What a treat to have my friend Jeff Manion from
Ada Bible Church in today. If you've not read this far,
(14:56):
pick it up wherever you buy books. It's a game changer.
You know, this idea of contentment is one of God's
big ideas around money that we need to really understand.
And as the Apostle Paul reminds us, we don't. We
don't have contentment. Naturally, it is a learned behavior. And
it's for the reasons that that Pastor Jeff talked about today.
You know, we have got to understand how difficult the
(15:21):
comparison trap is and how it will pull us in,
and how we can always find somebody with a little
bit justify why we continue to strive and without, you know,
without even realizing it, find our value and our worth
and our security and the things of this world, our
bank accounts and our 401 s, and we strive after
the next luxury item. And there's nothing wrong with enjoyment. Remember,
(15:45):
one of God's good gifts is money. He created it.
He created delight and joy. And we are to take
what he's entrusted to us and we are to enjoy it.
And that includes giving it away. But it also includes
celebrating and investing in our family and providing. Those are
good things. But we've got to live within God's provision.
And this idea that Pastor Jeff shared about here and now,
(16:07):
not there, and then that we need to be fully
present here and now and not saying no, I'll be happy.
I'll be satisfied when I reach that or when I
get this, or when I get to that next home,
then everything will be okay. No, you're always going to
be striving after that next thing. So what if you're
fully present and content right where God has you today,
(16:29):
and then when he blesses and you're faithful and a little,
you'll be faithful in much. But if we can't be
satisfied and content where God has us today, we will
never be satisfied. No matter what God gives us. Think about,
meditate on, pray about what you heard from Pastor Jeff today.
I know I will be all right. Let's take your
phone calls today. The lines are filling up, but we
do have room for you at the moment. 800 525 7000.
(16:54):
Any financial question today you can call right now. Let's
go to Rome, Georgia. Hi, Greg. Go ahead.
S4 (17:00):
Okay. Uh, I have two questions concerning Roth. Uh, I
won't retire next year. I'm either going to work, like,
three months or six months, and what I the first
question is, will I still be able to contribute to
Roth after I retire?
S1 (17:18):
Yes, sir. You can, so long as you have earned income.
And Social Security is not earned income. So earned income
is wages, self-employment consulting. So if you have any earned
income for the year up to the limit for the year,
which if you're over the age of 50, you could
(17:39):
put in $8,000 for 2025. So as long as you
have $8,000 for 2025, you can make that Roth contribution
as long as you have earned income up to the limit,
and that will continue to be in the future. What
doesn't count toward earned income? I already mentioned Social Security.
Also pension income, uh, investment income, you know, so if
(18:02):
you're fully retired without earned income, then you cannot contribute.
But if you're still working part time or running a
small business, then you're good to go. Or if you
worked part of the year and you brought in enough
income before you retired, um, that you would, you know,
be able to fund up to the limit, then you
would be able to do that as well.
S4 (18:23):
So how much income would I have to to make to,
to qualify for that?
S1 (18:29):
Only up to the limit of what you can put
into a Roth IRA for the year. So for the
year 2025, the most you can put in as a
person who's 50 or older is $8,000. So if you
have at least 8000 and earned income for the year,
then you can fully fund the wrath for this year.
S4 (18:48):
But once I've retired and don't have any income other
than I'll have company pensions and social security, but that
that won't count, right?
S1 (18:58):
That's correct. For Social Security and pension are not earned income.
S4 (19:03):
Okay. And the last question is when I start drawing
it out, will I have to pay any taxes?
S1 (19:09):
No, sir. If it's a Roth IRA, you've already paid
the tax. And as long as that account's been open
at least five years, and as long as you're over 59.5,
you can pull that money out. Your original contributions and
all the gain without any tax whatsoever.
S4 (19:26):
Okay. That'll do it then. And thank you a lot.
And you have a blessed day.
S1 (19:30):
Well. And you too, Greg. Call anytime, sir. Saint Louis,
Missouri is where we're headed next. James. Go ahead.
S5 (19:36):
Yeah. Hi. Thanks for your, uh, your, um, faithful work there.
I have a lot of credit card debt, and I
wondered if I thought about calling some of these, like
National Debt Relief or Trinity or somebody. You know, I
don't want to do anything unbiblical where I don't pay
my obligations, but at the same time, I need some assistance.
S1 (20:00):
Yeah. Uh, absolutely. You know, I like these programs a lot.
In fact, James, this is my preferred way to get
out of debt. And my rule of thumb is, if
you've got more than 4000 in credit card debt, then
debt management is the way to go. Uh, Trinity is
certainly one of them. An underwriter at, um, you know,
our long time partner here at Faith fi is Christian
(20:21):
Credit Counselors. They've worked with thousands of our listeners, both
very reputable, non non-profit, faith based organizations that are good
for people with more than 4000 in debt. Here's why
I like debt management. Uh, number one, the debt stays
right where it is. You're not putting a new loan
in place to roll up old debt or close out loans.
(20:42):
By refinancing, it stays right where it is. The interest
rate drops, the rate's going to go down to between
0 and 12%, not 20 to 22 or higher where
it is now. They'll give you one level monthly payment.
It doesn't decline as the balance is decline. And the
combination of that level payment, plus the reduction in interest
(21:03):
will allow you to pay that off 80% faster on average.
I think it's the only way to go now. The
card will be closed. Any cards in the program will
be closed while they're in the program. But I'll tell you,
the testimonies we hear from these organizations are phenomenal. They're
all believers. They'll pray with you. They'll help you create
your budget. They'll get you set up. So if you
(21:23):
want to connect with Christian credit counselors, go to Christian
Credit counselors.org. Just promise me you'll call me once you
pay it off. God bless you, James. We'll be right back.
Helping you see God is your ultimate treasure. This is
(21:44):
faith and finance here on Moody Radio. We're so glad
you're with us today. We've got four lines open. Any
financial question today? 800 525 7000. Let's head to North Carolina. Hi, Joy.
How can I help?
S6 (21:57):
Yeah. Um, I have $4,000 in savings in a discover bank.
And I'm just wondering, I have a Vanguard account, and
I'm wondering if I should switch it over to the
Vanguard account. And, um, you know, they're both. They're both
about the same in terms of interest, I think, um,
and I'm is is the discover Vanguard says it's high
(22:22):
yield savings. I'm wondering if discover is in that same category. Um.
S1 (22:29):
Discover is certainly known for having high interest rates, typically,
although any one could be higher or lower than another
in any given time. Uh, what is the rate you're
earning right now? Do you know?
S6 (22:41):
I think it's 3.5.
S1 (22:44):
Okay. Yeah, you can do better than that. I mean,
you could certainly look at Vanguard at one of their
money markets. You may be able to get upwards of 5%,
perhaps even more. You know, another option would be, um,
our friends at Christian Community Credit Union, up to $5,000.
They have, uh, their high yield. They call it their harvest,
(23:04):
high yield checking. So this would be a banking partner
that would be aligned with your values. They are a
credit union for Christians, and they're offering 5% right now
on that high yield savings, which means it's fully liquid.
It's insured. And you'd have access to it with the
click of a button by transferring it back to your
checking account at any time. And they're doing that specifically
(23:27):
for Faith fi listeners with the keyword Faith fi. You'd
get up to $400 added to it when you open it,
so that would be another option. I think you could
certainly look at moving it to Vanguard. You could also
look at Christian Community Credit Union, but you clearly can
do better, you know, than three and a half. I
think you should be able to get upwards of 5%.
If you wanted to check out Keikyu, just go to Faith.
(23:52):
That's faith. But there are higher rates available that are
very safe and highly liquid.
S6 (24:00):
Okay. And, uh, I had another question about my money
that's in the settlement fund in Vanguard. Is that a
good place for money? Because it sounds like it's not
doing anything. It's just there.
S1 (24:12):
Yeah. Tell me more about that account.
S6 (24:15):
I don't know, I don't. Every time I hear the
word settlement, it sounds like it's not really actively invested.
It's just there.
S1 (24:25):
Yeah, yeah. Basically what happens is that's other firms call
that a sweep account. But basically what they're probably talking
about is that, you know, money sits there temporarily when
you sell investments or transfer cash into the account. and
it's usually there, you know, at Vanguard it would be
there Vanguard Money Market Fund and it is paying some interest. Um,
(24:50):
you know, so it's just kind of how all these
brokerage firms work, um, you know, and it's a temporary
holding vehicle that's very safe. And it's just because money's
moving in and out of the investments, and when it
hits the account, because you make a deposit or you
liquidate an investment, it lands in that settlement fund. And,
(25:12):
you know, that's probably earning, you know, north of 4%. Um,
and so I think that that's completely fine.
S6 (25:20):
Okay. All right. Well, I thank you very much for
answering these questions. They've been bothering me.
S1 (25:26):
Okay.
S6 (25:27):
I will check that out. Bye bye.
S1 (25:29):
Sounds great. Call anytime. Joy. God bless you. Let's go
to Tennessee. Hi, Kim. Go ahead.
S7 (25:34):
Hello. Um, I received my husband's social security after he
passed away. And next year I'll be receiving his pension. Uh,
will the pension payment lower the Social Security benefit?
S1 (25:49):
No, it should not. Uh, you know, receiving a pension
does not reduce your Social Security survivor's benefits. As long
as the pension is from a job where your husband
paid into Social Security. Now, even that has changed with,
you know, them doing government pension offset. But was he
a government employee?
S7 (26:09):
No.
S1 (26:09):
Okay. Yeah. So as long as he is getting benefit
or was getting benefits as a result of paying in
to Social Security, you're now receiving those benefits as survivor's benefits.
Basically what he was receiving pension income has no bearing
on that whatsoever.
S7 (26:27):
Thank you. That takes a load off.
S1 (26:29):
I'm so glad. All the best to you. Kim, thanks
for your calling. And, uh, I'm so sorry to hear
about your husband's passing call anytime. Well, folks, uh, we're
taking your calls and questions today, helping you navigate, uh,
managing God's money. We realize that there could be a
lot of times just all the decisions. Finance seems complex,
and we want to try to make it simple, dealing
(26:50):
with both the heart side of money, how it can
rival our hearts for first position in our lives, and
the how to's, you know, the practical decisions. It's it's
kind of like an iceberg, you know, think about an
iceberg for a second. Only about 10% of the mass
of the iceberg is above the water line. That's the
how of financial decision making, the money market funds and
(27:11):
the CDs and the investments. And, you know, do I
use a debt management program? Again, that's probably only about 10%
the the biggest mass of the iceberg, the other 90%
you can't see because it's below the water line. And
that really is the why of financial decision making. It's
your values. It's understanding the heart of God. It's understanding
(27:31):
that God owns it all and we're stewards. It's understanding
that money is a good gift. I mean, all of
these things really play into ultimately the decisions we make
above that water line. But we've got to start there
and really understand God's intent for the money that he
has entrusted to us. I hope we help you each
day with that on this program, both the why and
(27:52):
the how. Let's deal with Pauline's question in Illinois. Pauline.
Go ahead.
S8 (27:57):
Hi. My question is I recently refinanced my home and
what I did, I paid off all the house. And
now what I want to find out, is it better
to pay the mortgage once a month or twice a month?
S1 (28:14):
Yes.
S8 (28:14):
Paying extra on it. So you know what I'm saying.
So since we since it's new, I'm just trying to
figure out which way to go about paying it and
paying it off. Yes. You know, sooner than year.
S1 (28:27):
Are they offering you something called a biweekly plan, or
are you just asking about something that you would do
on your own?
S8 (28:34):
Oh no, they they're offering it so you can pay
it once a month. You can pay biweekly or you
can pay it every two weeks. So that's that's an
offer that they have.
S1 (28:44):
Yeah. Yeah. Well the bi weekly payment actually can, can
be very effective. And here's how that works. You see,
if you pay every two weeks instead of once a
month or splitting the payment and playing, you know, half
twice a month, if you instead pay a half a
payment every two weeks, you will end up making 13
(29:07):
full payments because there's, uh, you will make a half
an extra payment every 26 weeks. And then over a
year you'll make a full payment. And so that 13
full payments instead of 12 can cut years off your loan.
I mean, it can just one extra payment a year.
Going to principal can take you from a 30 year
(29:27):
mortgage to a 26, and you'll save tens of thousands
in interest. But if it's really just cutting the payment
in two and sending it twice a month. There's really
no benefit unless the creditor credits the payment right away.
So if they credit the half payment and then they
don't charge you interest on it for the next two
(29:49):
weeks until you make the next payment. Over time, that
can result in you paying a lot less. But if
they're going to apply it all at the end of
the month, it's really no different. So I would say
either just pay once a month or if you can
do the every two week bi weekly payment and end
up paying an extra half payment a year or every
(30:10):
six months, a total of one full payment a year,
that can go a long way to helping you get
this paid off. Bottom line though. Anytime you send extra,
it's going right to principal and that's going to serve
you very well. Pauline, thanks for your call. Congrats on
that new home purchase. We'll be right back. Great to
(30:36):
have you with us today on Faith and finance live
here in our last segment today. Let's head right back
to the phones. Uh, Illinois is where Linda is located. Linda,
go right ahead.
S9 (30:45):
Hello, Rob, and thank you very much for taking my call.
And I really do appreciate your show. Thank you. My
question is real quick. Uh, if I have a living
will and I should when I die. And if what? What?
My assets have to still go through probate because I
have this living will or not.
S1 (31:04):
Yeah, well, it really depends on what you mean by that.
So a living will doesn't avoid probate. That outlines your
medical wishes. If you're incapacitated, do you by chance mean
a living trust.
S9 (31:19):
Or.
S1 (31:20):
Or just a last will and testament?
S9 (31:23):
Yeah, it's a living will. It's not a living trust.
S1 (31:26):
Okay. But a living will is. Go ahead.
S9 (31:30):
I'm sorry, but in the language it does says all
assets would go to upon my death would go to
my beneficiary, which is my son. And he's my only
my only child.
S1 (31:42):
Got it? Yes. Okay, so let me just draw a
little distinction here. And it's it's just one little word,
but it's important just to make sure you're clear. So
a living will says what medical care you want. If
you can't speak for yourself, it has to do with
life support and feeding tubes and end of life decisions. Uh,
a will without the word living in front of it.
(32:04):
Just a will. What's often called a last will and
testament that says who gets your stuff when you die?
Your property, your money, guardianship for kids, and so forth. Now,
with a will versus a trust, let's say, um, your
personal property and the money. And, you know, the other
(32:26):
decisions will even though you've said it all goes to
your son, it will go through probate. Uh, unless there's
a beneficiary designation. So for instance, you might have a
401 or an IRA or an investment account and you've
named your trust or excuse me, you've named your son
as the beneficiary. That will go directly to your son.
(32:46):
But anything that does not have a beneficiary, then your
will is what determines where it goes. But with a will,
it does through go through probate, which just simply means
there's going to be probate costs involved and there's going
to take time. While the probate court works with the
executor to distribute the assets. It's not going to happen
(33:08):
right away, which is why often people will put a
living trust in place because they don't want to go
through probate. Does that answer your question, though?
S9 (33:19):
Yeah it does. So but again, I want to just go.
You said if everything I have I have a beneficiary
and most of most of what I have is liquid. So, uh,
my son is the beneficiary on all of these vehicles
that I have as far as my Roth, my IRA
(33:40):
and I have a couple of annuities.
S1 (33:43):
Yes. And so if those which they do, if those
have up to date beneficiaries and your son is named
as beneficiaries, all those investment accounts you just mentioned and
perhaps life insurance, things like that, that would go outside
of probate directly to your son. The big one that
that is going to go through probate, which is going
to take some time unless you have a will or
(34:06):
some other mechanism in place, is your home. Your home
would pass according to your will, and that would have
to run through probate before your before your son had
access to it.
S9 (34:18):
Okay, well I rent. Matter of fact, I rent from
my son. He owns property, so.
S1 (34:23):
Well, there you go. So it doesn't sound like as
much of an issue there.
S9 (34:26):
Right. Okay. All right, well, I appreciate you taking the
time to answer my question. God bless and have a
nice day.
S1 (34:31):
Yes, ma'am. You two call anytime. Let's go to Miami, Florida. Hi, Angela.
Go ahead.
S10 (34:37):
Oh, thank you so much, Rob, for taking my call.
I have a question here. I have a long term policy.
I've had it since 2018, and the premiums are like
12,000 a year. I'm paying into it. And the last
time I talked to my advisor, they told me I
have 400 and like 400,000. Ballpark figure. But what I
(34:59):
didn't know, she's telling me it doesn't go in effect
until after I'm six months sick, which I think is
a long time. So I'm trying to see if I
should get rid of this policy and another policy. Or
is that the normal for most long term care policy?
S1 (35:14):
Yes. Well, what you're describing is pretty customary, but it
is on the longer end of what's called the elimination period.
So that six month wait is what's called an elimination period.
And basically it's like a deductible. So it's a waiting
period before the benefits kick in. And that waiting period
(35:37):
is usually between 30 and 180 days. And in your
case it's 180. Um, which again is on the kind
of the, the, the longer end of that typical range.
So during that time you have to pay for your
care out of pocket, even though you're eligible for $400,000
in benefits, you can't get to it until you get
(35:58):
past essentially your deductible, which is that six month waiting period. Now,
the reason why you want that, perhaps, is because that
helps to keep your premiums the lower, because if you
have a much smaller waiting period where it kicks in
much sooner, you're probably going to have much higher premiums, uh,
(36:19):
right now while you're paying into this policy. So the
key for you with a longer waiting period is to
make sure you have the staying power in other assets.
So let's say full nursing care, which is probably the
most extreme situation that in terms of cost, let's say
it's going to run you $100,000 a year in round numbers.
(36:40):
So you're going to have to be able to wait
six months, which could cost you 50 grand. But if
you've already got that in investments or in a savings
account or you know somewhere else and you could fund
that out of pocket, and then all of a sudden
your policy kicks in and it'll pay for years. And
until the Lord calls you home up to $400,000, well,
(37:01):
that's not bad. Especially if it allows you to keep
this policy in force because the premiums are not cost prohibitive. Which,
by the way, premiums on long term care policies have
been increasing as the cost of health care increases. And
so a lot of people are having to drop them
because they can't afford them anymore. And perhaps this longer
waiting period is what's making yours able to, you know,
(37:24):
something you can continue to afford, if that makes sense.
S10 (37:28):
Yeah. Yeah. It makes sense. And I know that most
of them are, like, from 30 to 180 days, though. Oh, okay.
And if I go get a 30 day one that
kicks in, I'm probably paying a higher premium.
S1 (37:40):
Well that's right. Plus you're older now. How old are you? Uh.
S10 (37:44):
I am 67, and I have three quarter.
S1 (37:47):
Yeah. And when did you get this policy?
S10 (37:50):
In 2018.
S1 (37:51):
Yeah. See, so you typically want to get it between
55 and 65. And you're beyond that now. So you'd
kind of have a double whammy in the sense that
you'd be shortening the elimination period. And you know, now
you're seven years older. And so the premium would be
quite a bit higher to the point where you might say,
either it's not worth it or I can't afford it.
S11 (38:16):
All right. Well, thank you so much. I guess I
end up.
S10 (38:19):
Keeping it then. All right.
S11 (38:20):
Yeah.
S1 (38:20):
Yeah. And I think the key is just plan on
the fact that you're going to need to fund that
first six months so you don't get caught off guard
on that. And that's going to come by way of
your savings or your investments. Angela, thanks for your call today.
Let's go to Fort Myers. Scott. Go ahead.
S4 (38:36):
Yes. Rob, I.
S12 (38:37):
Had a quick question for you. Um, I'm on SSDI. Um,
I've been on it for about 5 or 6 years.
I've had a ton of health problems. My question is,
can I fund a IRA or contribute to my IRA
even though I'm on SSDI?
S1 (38:52):
Uh, do you have any earned income?
S12 (38:56):
Uh, I have a part time job. I make around
$1,400 a month. Yes, sir.
S1 (39:01):
Yeah. So if you you can use that earned income, uh,
in the sense that. So the SSDI does not count
as earned income, but wages from a part time job do.
So if you earn, at least, um, you know, $7,000
if you're under 50 or 8000 if you're 50 or older,
then you could use that to fund a Roth IRA
(39:23):
up to the limit for the year.
S12 (39:25):
Okay, I'm 52, so I could fund it up to 8000.
Is that correct?
S1 (39:29):
Yes. The only question would just be, you know, and
I assume you're you're tapped into this, but you need
to make sure your part time earnings don't jeopardize your
SSDI eligibility with what they call substantial gainful activity, which
I think is around 1500, 1600 a month, something like that.
S12 (39:46):
Yeah, yeah, it goes up a little bit every year. Yeah,
I'm familiar with that. One other question. When I had
my when I had my really good job and made
good money, my, my financial advisor wanted me to open
up a not a I think he had me in
an IRA. Then he had me open up a Roth
IRA because of some different law. And I don't remember
why he did that. Would you have a reason why?
(40:07):
That's why he probably did that.
S1 (40:09):
Yeah, it's probably what's called a backdoor IRA. Do you
remember that term?
S12 (40:13):
I think that does ring a bell. Yes, sir.
S1 (40:16):
Yeah. So what happens is when you earn over the limit,
there's a there's a cap, uh, you know, in terms
of your max income that you can afford, uh, to
be able to be eligible to contribute to a Roth IRA.
So for this year, you know, that, uh, upper end
cap is, I believe, you know, if you're married, filing jointly,
(40:39):
like 236,000, if you're single or head of household, 150,000.
When you get over that, you're no longer eligible to
fund a Roth IRA. But there is something that's in
the tax code that's fully legitimate. It's a little bit
of a loophole where you can fund, you can make
a nondeductible IRA traditional IRA contribution, and then you can
(41:02):
convert it to a Roth. And so it's essentially a
back door way to get money into a Roth to
grow tax free, even though you don't meet the eligibility
because you earn, uh, you know, too much money.
S12 (41:15):
No, that's probably what it was. I was making really
good money, and he did it as an advantage for me. So. Yeah. Yeah. Hey,
I really appreciate the clarification, Rob. Thanks a lot.
S1 (41:22):
All right. Absolutely. Scott, we appreciate your call today. Hey, folks. Uh,
so glad to have you along with us today. Let
me take just a moment and invite you to, uh,
be a supporter here at Faith. Fi, you know, this
ministry that we bring to you every day through this
radio broadcast and our studies and devotionals and our app
and on the new faith comm coming this fall with
(41:42):
all of our new beautiful content that's just rich theologically
and will help you, uh, explore your money journey according
to biblical wisdom. All of that is made possible through
listener support. We're a not for profit ministry. We count
on your support, and one of the ways you can
become a supporter of this ministry is through our partner program,
$35 a month or more, or $400 a year. And
(42:06):
as a thank you, we'll send you four issues of
Faithful Steward, every new study or devotional mailed to your house,
and pro access to the Faith fi app. Just check
it out at. Faith at Finance Lives, a partnership between
Moody Radio and Faith fi, Tahera, Omar, Rihanna and Taylor
serving us today. We'll see you tomorrow.
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Does hearing about a true crime case always leave you scouring the internet for the truth behind the story? Dive into your next mystery with Crime Junkie. Every Monday, join your host Ashley Flowers as she unravels all the details of infamous and underreported true crime cases with her best friend Brit Prawat. From cold cases to missing persons and heroes in our community who seek justice, Crime Junkie is your destination for theories and stories you won’t hear anywhere else. Whether you're a seasoned true crime enthusiast or new to the genre, you'll find yourself on the edge of your seat awaiting a new episode every Monday. If you can never get enough true crime... Congratulations, you’ve found your people. Follow to join a community of Crime Junkies! Crime Junkie is presented by audiochuck Media Company.
The Breakfast Club
The World's Most Dangerous Morning Show, The Breakfast Club, With DJ Envy, Jess Hilarious, And Charlamagne Tha God!