August 6, 2025 • 43 mins
On Faith & Finance Live, it’s the start of a new three-part series called, “Why We Give.” Over the next few weeks, Rob West explores common but harmful motivations for giving—reasons that might sound spiritual on the surface but actually miss the mark of biblical generosity. The topic this week: guilt. Rob explains why giving should come from joy, freedom, and a desire to partner with God’s Kingdom work. Then, he addresses your financial 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 (00:04):
The following programme was pre-recorded so our phone lines are
not open.
S2 (00:08):
Have you ever felt like giving to your church is
more of a burden than a joy? Hi, I'm Rob West.
Today we're starting a new three part series called Why
We Give. Over the next few weeks, we'll explore three
common but harmful motivations for giving reasons that might sound
spiritual on the surface, but actually miss the mark of
biblical generosity. Today's topic guilt. Then we have some great
(00:31):
calls lined up. But we won't be taking your live
calls today because we're pre-recorded. This is faith at finance live.
Biblical wisdom for your financial journey. God loves a cheerful giver.
That second Corinthians nine seven. But let's not miss the
first part of that verse. Paul writes. Each of you
(00:53):
should give what you have decided in your heart to give,
not reluctantly or under compulsion. Those words are important, not
reluctantly and not under compulsion. In other words, giving shouldn't
come from guilt. It should come from joy, freedom, and
a desire to partner with God's kingdom work. Now I
get it. Guilt is a powerful motivator. Maybe you've felt
(01:15):
it sitting in church as the offering plate passes, or
a giving campaign launches and your heart sinks. Thoughts? Race.
I haven't given enough. I'm failing God. That kind of
giving isn't rooted in grace. It's rooted in fear. And
that's a problem. You see, guilt driven generosity misses the
heart of the gospel. Romans eight one reminds us there
(01:36):
is no condemnation for those who are in Christ Jesus.
If that's true and it is, then we need to
be very cautious about any teaching or impulse that leads
us to give because we feel condemned. Christ didn't go
to the cross so we could live under spiritual guilt trips.
He went to the cross to free us from them.
If you're in Christ, your guilt has been dealt with
(01:57):
once and for all, and that includes any guilt you
feel about what you did or didn't put in the
offering plate. Now let's make an important distinction here. There's
a difference between guilt and conviction. Guilt is a tool
of the enemy. It isolates us. It whispers, you'll never
be good enough. But conviction. Well, that's the work of
the Holy Spirit, lovingly inviting us into deeper trust in him.
(02:21):
He says, come, be transformed. Let me shape your heart.
John 16 eight says, The Holy Spirit convicts us not
to shame, but to lead us into truth. So if
you feel stirred to give not out of fear, but
to reflect God's heart, that's not guilt, it's growth. Here's
a helpful way to tell the difference. Guilt says I
(02:41):
must give, or else Grace says, I get to give
because of all I've received in Christ. There's a powerful
passage in Hebrews nine that explains how the blood of
Christ cleanses us so we can serve God with a
clear conscience. Verse 14 says this how much more then
will the blood of Christ cleanse our consciences from acts
(03:02):
that lead to death, so that we may serve the
living God? Notice that it's only when our consciences are
cleansed that we're truly free to serve. The same is
true with giving. We can't give faithfully while carrying guilt.
We need to be reminded of the gospel of grace.
Here's the irony. Giving out of guilt actually blocks the
transformation that generosity is meant to bring. When we give cheerfully,
(03:25):
we're reminded that all we have is from God. That
we're stewards, not owners. That reshapes us from the inside out.
Let me say it this way. When we give out
of guilt, we're missing out on walking in the freedom
of the gospel. But when we give with joy, we're
declaring that Jesus is enough. We don't give to earn
God's love. We already have it. We don't give to
(03:46):
cover up shame. Jesus already took that. We give because
we've been invited to participate in something beautiful. God's kingdom
work in the world. So what if you realize that
guilt has been shaping your giving? Well, first bring that
to the Lord. Don't run from it. Confess it and
ask him to renew your heart. Second, reflect on how
(04:06):
God has provided. Gratitude is the seedbed of generosity. When
we remember what God has already done, we stop giving
to earn his favor and start giving because we already
have it. And finally ask, what does joyful giving look
like in this season? Not compared to others, but in
light of your own journey with God. Because God isn't
after your money, he's after your heart. And when he
(04:29):
has your heart, generosity will follow not from guilt but
from grace. By the way, you can explore more on
this topic for the right reasons. In the latest issue
of Faithful Steward or Quarterly Magazine for Faithful Partners, when
you give $35 a month or a one time gift
of $400 or more per year, you'll join a community
(04:50):
committed to spreading biblical financial wisdom. You can become a
partner today or learn more at Faith. That's faith. And
by the way, as a listener supported ministry, partners are
critical to the work we do so we can equip
millions to be wise and faithful stewards. Now, next week,
(05:13):
we'll continue this series by looking at another harmful motivation
for giving control. You won't want to miss it. Just
a quick reminder we're not here today, so don't call in.
But we're going to head to a break and much
more coming just after this. Stay with us. I'm so
(05:35):
thankful you're joining us today on Faith and Finance Live
I'm Rob West. Hey, just a quick reminder. Our team
is away from the studio today, so don't call in.
But in just a few moments, we're going to get
to some questions that we lined up in advance that
I know you'll find very interesting, but let me take
a moment just to invite you first to be a
supporter of this ministry here at Faith fi. You know,
(05:56):
we bring you this broadcast every day as a listener
supported ministry only because of your generous support. So maybe
you listen regularly. Perhaps you count on this program. Maybe
you've been able to apply some of the wisdom from
God's Word that you've heard in your financial life, or
it's just help you to be that wise and faithful steward,
(06:17):
and you'd like to be a part of our team. Well,
one way you can do that is by investing in
this work through a one time gift, or even by
becoming a faith life partner. I just invite you to
join us on this journey. When you head to faith.com
and click give, a gift of any amount would be
a big help. Again, that's faith. And just click give
(06:38):
and let me say thank you in advance. Your gift
will make a huge difference. Now we're going to dive
in here in just a moment. We'll begin with Michael
in Ohio. But first in the news starting in In 2026.
Children born between 2025 and 2028 will receive a $1,000
federal deposit into a new Trump account. That's right. It's
(07:02):
called the Trump account. It's a tax advantaged savings vehicle
designed to jump start long term investing. Parents and employers
can contribute up to $5,000 in $2,500 annually, respectively, with
funds invested in a low cost US stock index. Now,
while the intent is to build wealth early through compound growth,
(07:25):
there are significant limitations. Trump accounts operate like traditional IRAs.
They grow tax deferred, but early withdrawals before 59.5 face
a 10% penalty. Even though funds become accessible at age 18,
qualified early withdrawals, such as for education or a first
(07:45):
time home purchase, may be allowed but remain partially taxable,
experts note the account lacks key advantages of Roth or
529 plans, offering neither tax free withdrawals nor flexible investment options,
compared to 529 plans which allow higher contributions. Diversified investments
(08:07):
and tax free education withdrawals Trump accounts may offer less
flexibility for college savings. Still, the $1,000 seed makes the
account attractive for eligible families. Wealthier families may pair Trump
accounts with 520 nines to diversify future savings, but most
Americans aren't maxing out, either. While additional IRS guidance is needed,
(08:32):
financial planners agree that Trump accounts are best viewed as
a long term retirement tool for children rather than a
primary savings vehicle for college. But nevertheless, it's in play
as a part of the new legislation, the Trump account
is coming your way. And so, uh, well, I think
it's a great thing to incent long term savings. We'll
(08:54):
keep you posted as more details come out. All right.
Let's dive into your questions today. Let's go to Ohio.
Michael go ahead sir.
S3 (09:01):
Thank you for taking my call.
S2 (09:02):
Of course.
S3 (09:03):
Rob, I'm getting ready to solidify an investment opportunity. A
one acre lot in Strongsville. I've been told by the
city they're $20,000 is a fair and equitable offer. I'm
considering taking a home equity loan on my condo for
the $20,000. The condo is currently valued at $138,000 by
(09:24):
the bank. The interest rate for a 20 year payment
would be 7.290, and my payments would be one 5856
a month. My current living expenses are just under $2,400
a month, not including vehicle repairs and food. I currently
earn between two full time employers between 75 and $85,000
a year. I plan on putting a ranch on the
(09:46):
property either 25,000 or 30,000ft² and giving the property to
my niece and nephew.
S2 (09:53):
I love that, yeah. So you're just wondering whether this
home equity loan makes sense.
S3 (09:58):
If the home equity loan makes sense? I've heard it
on your radio broadcast this past couple of weeks. You
anticipate that interest rates are going to drop in the
next six months to a year, or bases on only
$158.56 a month. I could pay off the loan in
three years like I did my condo in three years.
S2 (10:16):
Okay. Yeah. Very good. So you've got quite a bit
in surplus every month, and you're going to put that
toward paying down the loan, correct?
S3 (10:25):
Yes. You're paying the principal on the loan immediately within
three years.
S2 (10:29):
Yeah. Great. I love that. I mean, the only change
I might make here is for you to consider a
home equity line of credit. Uh, just because that will
give you that variable rate. So as rates do come down,
that interest rate will come down. Now typically while the
line is open. They only require interest only. But obviously
(10:49):
you're you're not going to follow suit. You're going to,
you know, really go after that principal, which would be great.
But I'd much rather you have that variable rate that
will come down with the fed funds rate, rather than
you locking in at that 7.5% rate. Does that make sense?
S3 (11:05):
That makes sense. I'll have to consider that when I
talk to the bank right now, I'm tweaking my trust
for that.
S2 (11:11):
Okay. Yeah. Very good. I think the other thing is
just look at, you know, you may want to get
2 or 3 bids because there are some banks out
there offering home equity lines of credit that are essentially
fee free, uh, where, you know, maybe they'll cover the
cost of the appraisal or, you know, there won't be
any kind of, uh, administrative or, you know, fees or
(11:33):
origination fees, things like that. And so they're not all
created equal. You need to look at what is the
interest rate. Often it might be prime plus one. Um,
you know, the the prime rate right now, uh, is
sitting at, uh, I believe it's sitting at 7.5%. So
if it's prime plus one, it might be 8% 8.5%.
(11:57):
But you may find one that's not only fee free,
but maybe it's prime plus zero. Uh, so I think
shopping it around and getting a few quotes, you know,
would be good. But overall, Michael, I love the plan.
I mean, you're living way below your means. Sounds like
you've got a good buy here. You're going to pay
it off in three years. You're looking to be generous
with it, uh, to leave it to or give it
(12:18):
to a family member. You know, I don't I don't
disagree with any of that.
S3 (12:22):
Uh, the bank told me that there is no administrative fee.
Just one cost of $41.50 for some kind of paper
fee or something of that appraisal or something. Just $41.50.
S2 (12:33):
Okay. Yeah. I mean, normally an appraisal might be 2
or $300. So yeah, you just want to make sure
that they give you the truth in lending. So you
can look at any fees both hidden and, you know
those that they mention. But I think if they're giving
you a pretty attractive offer there, I would check out
the opportunity to get that variable rate tied to the
home equity line of credit. The other thing that also
(12:54):
happens with the HELOC is as you pay that money back,
it becomes available to you. And so if you wanted
to use a portion of that for construction, or you
wanted to buy another property, you could, you wouldn't have to.
It'll just sit there. But it does continue to stay
available to you. Now, once you decide to build the dwelling,
you're probably going to want to limit, you know, any
(13:16):
kind of borrowing to that property itself rather than tying
it to your primary residence. I would rather you not
have your your primary residence encumbered and really just have
everything relegated to the the property where you're going to
be ultimately building. But overall, I think this is a
great plan. Michael, I'm on board.
S3 (13:35):
And three and a half years I'll file for the
Social Security. They don't kick me $3,000 a month.
S2 (13:40):
There you go.
S3 (13:41):
And in addition to the 75 to $85,000.
S2 (13:44):
Yeah, I love it, man. It sounds like you've really
thought this through. I love that you're living modestly. I
love that you're a generous guy. Sounds like you got
all your ducks in a row. Thanks for calling, my friend.
We appreciate you being on the program. Hey, stay on
the line. I want to send you a copy of
our magazine. Faithful steward. I think you'll enjoy it. Well, folks,
before we head to this break, let me remind you,
if you haven't checked out faith. Com. That's faith. Com.
(14:09):
I'd love for you to do that. You'll find the
best content in biblical finance there for you to grow
in your understanding of managing money God's way. You'll find
our community and the money management system. It's all there
at Faith comm. Now, again, a reminder we're not here today,
but more of your questions that we lined up after
the break. Great to have you with us today on
(14:35):
Faith and finance live. I'm Rob West. Our team is
away from the studio today. We're not here, so don't
call in. But we lined up some great questions in
advance and we'll get to those in just a moment first.
You know, as I look at the scriptures, one of
the big ideas that literally jumps off the page when
you look at this area of finance in light of
a biblical worldview, is the idea of contentment. We should
(14:58):
foster an attitude of contentment. And I think that's the
first understanding is that it is, in fact, an attitude.
Matthew 633 says, but seek first the kingdom of God
and his righteousness, and all these things will be added
to you. If our aim is the kingdom, then that
changes our perspective. It makes it focused on the eternal,
(15:19):
not the temporal. And that's a game changer. Well then,
from an attitude, we learn that contentment is in fact
learned by the apostle. Paul said it this way, not
that I'm speaking of being in need, for I have
learned in whatever situation I am to be content. That's
Philippians 411. So it's a learned behavior. It's also a choice.
(15:41):
You know, I can choose to be content in every circumstance.
Rich or poor, happy or sad, easy or difficult. Because
as Christ followers, well, our position in Christ never changes.
And I think that's an important reminder for us today.
And perhaps it could change your whole approach to your money.
All right, let's head back to the phones. Oklahoma is
(16:02):
where we're headed next, Bob. Go ahead. Sir.
S4 (16:04):
Yes, sir. Uh, I, uh, kind of bashful here a
little bit on the phone, but anyway.
S2 (16:12):
Hey, you're going to do great, Bob. I'm thrilled you
called today.
S4 (16:17):
Well, I, uh, I'm trying to. I'm getting close to retiring.
I'm 70. Going to be 73 this year, and I'm
looking at, uh, retiring, uh, probably in about a year. And, um,
I've got a 401 K that's got roughly about 120
or so K in it. And then, uh, my wife
(16:41):
has a little, uh. IRA, that's about 12,000. I don't know,
I've often thought that I needed to get it out
of where it's at. It's like Edward Jones, and I
don't think they're taking good care of it, really. But anyway, um, uh,
we've got a couple of houses, our residents, and then
(17:02):
a rental house and stuff. Um, and I'm also retired military,
so I'm not doing I think I'm going to be
okay by walking away, uh, from from my job, but
I'm a little bit nervous about it, and and I'm also, I,
(17:23):
I want to preserve as much of that, uh, that
120,000 in the, uh, 401 K as I can for
as long as I can, obviously, and maybe even give
some of it to my kids. Yeah. But, uh, anyway,
I'm just, uh. Well, uh, for one thing, uh, I
(17:46):
know that it's it's roughly. I'm not sure if I'm 40,
60 or it maybe even 70, 75, 25 as far
as stocks. Yeah. In there. And I've done really well
with it or fairly well anyway. I mean, yeah, you know,
we had some downturns and everything like that, but um, I,
(18:07):
I mean, I probably I was thinking about it the
other day and I probably only have roughly of actual
dollars that I've invested, maybe $60,000. So I've basically doubled
it since I've been doing it. But, um.
S2 (18:21):
That's great. Well, that's all really helpful background, Bob. You know,
I think the there's several things here. Uh, number one is,
you know, you you have planned. Well, it sounds like
you have lots of, of pieces here. Are you already
earning your military retirement plus collecting Social security?
S4 (18:40):
Yes, sir.
S2 (18:41):
Okay. And the combination of those two. Um, even before
your full time income, are those enough to meet your
bills every month?
S4 (18:50):
I think I think it's real close. If not. If not? Yes.
S2 (18:55):
So I think that's kind of the question you need
to solve for first and foremost. And perhaps it means
you need to take another look at that budget and
just kind of dial into what are our both fixed
and discretionary expenses fixed. The things we get a bill
for discretionary, the things we spend money on that we
don't get a bill for. But they they happen routinely,
(19:16):
maybe not every month but but regularly and get everything
into the budget to figure out what is it going
to take for us to fund our lifestyle. And the
question is going to be if Social Security plus the
military retirement, plus, you know, any rental income after expenses and,
you know, property taxes and insurance and anything you'd put
(19:37):
aside for repairs, um, you know, anything that you have
extra every month, uh, you know, when you put all
that together, if that's enough. Well, then, you know, you're
just kind of able to continue to work to bring
God glory. We were created to be workers. So I
love the fact that you're continuing to work and be productive.
I think that's part of God's design. But there may
come a time, sooner rather than later where you're going to,
(19:59):
you know, transition to something else that God has for
you and that may or may not involve pay. And
we're going to want to know, you know, are your
bills covered? And if so, that gives you then the
freedom to just let this roughly 130,000 continue to grow
like it has been. And you could either leave it there,
it sounds like you've done well. The 401 K makes
(20:19):
it pretty simple because you have that menu of investment
options or in general. This is what I recommend. When
you retire, you roll it out to an IRA and
you just have an advisor take over and manage it
for you. And and then that person can also help
you do some planning, you know, just to make sure
that your estate is in order that, you know, you've
you've addressed things like a living will and a health
(20:42):
care surrogate and a durable power of attorney. And you
know that you have thought about long term care and
what you're going to do if you need that and
give oversight to the investments with your goals and objectives
in mind. I think you're right. I think, you know,
at 70, we probably want somewhere around a 70, 30, uh,
portfolio with, you know, probably 30% in stocks, maybe 70% bonds.
(21:06):
If this is money you don't need and you're really
thinking beyond your life and your wife's toward the kids,
you know, maybe you even go 60, 40 with 40%
in stocks because, you know, even you at 72, you
need to be thinking about a couple of decades or
more in terms of this money lasting. And then beyond that,
you know, you're thinking about growing this for the kids
(21:27):
to benefit from. And so, you know, that may cause
you to say, maybe I'm going to keep a little
bit more in stocks than I would if this was
money I was drawing down every month because I was
living on it. If that makes sense. So let's do this.
I've got to hit a break, but you and I'll
finish up off the air. Bob, I want to see
if you have any follow up questions, and I'll be
sure to tackle those as we head to the break.
(21:48):
Let me remind you quickly, we're not here today. We're
away from the studio, so don't call in. But more
questions that we lined up in advance just around the corner.
Stick around. Grateful you tuned in to Faith and finance live.
I'm Rob West, your host. This is where we recognize
that God owns it all. You're a steward or a
(22:11):
manager of God's resources, and money is a tool to
accomplish God's purposes. Hey, we're away from the studio today,
so don't call in. But we lined up some great
questions in advance that I know you will enjoy. In fact,
let's go ahead and take one of those right now. Uh,
to Texas. We go. Hi, Gary. How can I help you, sir?
S5 (22:30):
Hey. I'm a first time home buyer. If this goes through.
I was wondering if you had any advice on what
to do. If it's a, uh. I assume a buyer's
market is, uh. The word I would be looking for
would be on my advantage. What do you think about that?
And before you before I got a second question, if
(22:53):
that's a possible.
S2 (22:54):
Yeah. Go ahead with that second question.
S5 (22:57):
Okay. Along with the, uh, house, a piece of land
is added to it. And I was thinking about putting. But,
I mean, uh, setting up, uh, eight RV spots on
that land.
S2 (23:13):
Okay.
S5 (23:14):
I like your opinion on this.
S2 (23:16):
Alrighty. Uh, yeah. Let's start with the first part of that, uh, question. Uh,
you know, I think first of all, when you're in
a buyer's market, uh, essentially you benefit from lower prices
because there's more supply and less demand, more negotiating power,
because buyers can often negotiate on price and closing costs
(23:37):
a little bit more significantly than if we're in a
seller's market. It's driven by the fact that there's more inventory.
So that's another benefit because you have more homes to
choose from and you've got less competition. Now the question is,
are we in a buyer's market right now? Um, I
would say in most areas across the US, this is
really still largely a seller's market, but it's starting to
(24:01):
shift in some regions. Um, you know, the, the high
mortgage rates that have been stickier than we expected, meaning,
you know, we thought they would have started to come
down by now. And they haven't because the fed has
kept interest rates steady. On the fear of inflation rising,
largely due to the tariffs and some of the uncertainty, um,
that has cooled buyer demand. Uh, inventory is still, uh,
(24:27):
you know, is slowly increasing, but it's still, uh, you know,
fairly low. Meaning we still have a shortage of homes
in this country. And then prices are stabilizing or dipping
in certain areas. So it really depends on where you live.
You know, real estate can be hyper local. Um, you know,
but at the end of the day, as a first
time homebuyer, you know, I think the keys are, first
(24:50):
of all, know what you can afford. And one of
the gauges for that would be, you know, do I
have at least a 20% down payment? And will my, uh,
you know, my mortgage payment be no more than 25 max, 30%, uh,
of your take home pay? Um, and then second would be,
you know, check your credit and get pre-approved. Um, so
(25:13):
the higher the credit score, the the better the loan terms.
And you don't want to just get pre-qualified. You want
to get pre-approved. This shows a seller that you're serious
and you're ready. You also want to not neglect to
plan for ongoing costs. So you need to be able
to budget for not only the principal interest, taxes and
insurance payment, the monthly payment, but you need to budget
(25:35):
for repairs and maintenance. You know, things like that, because
you know you're going to have those that come up
along the way. You know you're responsible, unlike when you
rent for the water heater, you know, going out and
you got to be ready for that. Um, and then
I would finally say, don't go it alone. I think
a trusted realtor who knows your area, who can negotiate
for you, who can walk through the process with you, uh,
(25:58):
is really key to you being able to do this? Well. Uh,
but let me stop there first and just see if
you have any questions on any of that.
S5 (26:06):
Well, it's going to be my cousin, so it's already
a done deal if I, you know, and he said,
since my aunt. Well, beside the point we took care
of my aunt, as you know, got older And he said,
you know, you did me a solid. I'm going to
(26:26):
do you a solid when it comes to selling it.
Selling this house to us. To me.
S2 (26:32):
Yeah. So now what do you what are you gauging
the price on? Um, did you do a comparative market
analysis or an appraisal?
S5 (26:43):
I sure didn't.
S2 (26:44):
Yeah. I would do that. And I'm not saying your
cousin's misleading you in any way, but I just think
it's also helpful to know what is this property actually worth?
Not what we think it's worth, but what it's actually
worth based on, you know, a real appraisal.
S5 (27:00):
Well, the, uh, we're going by what the county said
and what the homes around it cost. And, uh, I
know it's worth more than 190,000. That and the land.
S2 (27:14):
Okay. All right. Yeah. I mean, just as long as
you as as long as you've got good reason to
believe that, um, you know, where you're adjusting the comparables
around it for the features of this property, but it
sounds like if you're convinced, yeah, this is below market.
And he's, you know, doing you a favor. That's great. Um,
there may be some tax implications to that in terms of,
(27:35):
you know, him selling it below market, if that's truly
what's happening. The difference between what it's really worth and
what he sells it to you for would essentially be
considered a gift. Um, and so that just may be
something you want to mention to him. But apart from that, um,
I mean, that solves for a lot of things. Uh,
but you are going to want to have at least
a real estate attorney just kind of help you with
(27:56):
the closing and the real estate contract and just making
sure that everything is filed properly and done the way
it should be.
S5 (28:06):
Fantastic. I'm glad you said that.
S2 (28:09):
Yeah.
S5 (28:09):
Okay. What about the, uh, RV? Maybe a little. I'm
talking about an RV park. Maybe.
S2 (28:15):
All right. And this is a property. Um, this is
a property. A piece of land attached to the home
that you're buying.
S5 (28:23):
Yeah, it's right beside it.
S2 (28:25):
Okay. And give me a little bit of an overview
of what you're thinking about doing.
S5 (28:30):
Uh, setting up, uh, maybe eight, 6 to 8, uh, RVs.
And I know around that area, they go about $500
a month, give or take, you know, in that area.
So that's what I'm going by, maybe putting 6 to
8 in there and wondering what, what that would entail
(28:53):
as far as the income and then having to pay.
You can't do that as it like saying that's just
me doing this. I guess the government's going to want
their cut.
S2 (29:04):
Yeah. Yeah. I mean, I think, I mean, basically you're
starting a business here and so you've got to do
everything you would do when no matter what kind of
business you're starting, which is, first of all, the the government, uh,
zoning and permits, you've got to check with the county
or the city. Is the land zoned for RV use
or short term rentals. You're going to need permits and
(29:25):
a site plan and utility hookups that can be expensive.
You've got to understand the full startup costs. It's not
just the land. It could be costs for grading or
the pads or, you know, the utilities. Like I mentioned,
the amenities. You've got insurance and maintenance and possible management costs. Um,
you know, if the demand is strong, you could see
(29:46):
solid returns. Um, you know, but there's seasonal slowdowns. And
so you just need to, you know, understand that you're
getting into something that's going to require active management. You
could hire help, but that's going to eat into the profits.
But I just want to make sure that the zoning
allows it. The numbers make sense. And you've got a
really good plan for the startup costs before you go
(30:08):
into this and kind of get over your head or,
or get, you know, beyond your means and have to
take on some debt, uh, to see this through. Does
that make sense?
S5 (30:17):
Yeah, but but the deal is, is, uh, where I work,
I can get the equipment to do most of all the, uh,
water lines. Sewer lines, pads.
S2 (30:26):
Okay.
S5 (30:27):
Putting up, uh, like you said, the, uh, for the electricity.
S2 (30:32):
Yep. Yep. So that's great. And maybe that saves some cost,
but you just need to think about everything else. The
zoning and the permits, the insurance, the ongoing management of it. Sure,
there's income potential, but you just really need a full
business plan. So I would just make sure you look
at each aspect of that and have a plan for
it before you go ahead. Thanks for your call, Gary.
We'll be right back.
S6 (31:08):
You're listening to Faith and Finance Live, and you can
find us online at. However, today we are not live.
So if you hear that phone number, please don't call.
But do stay with us. There's lots of good information ahead.
S2 (31:24):
Let's go to Michigan. Hi, Carol. Thanks for your patience.
Go right ahead.
S7 (31:27):
Hi. Thanks for taking my call. I've called a couple times,
so I really appreciate it.
S2 (31:31):
Absolutely.
S7 (31:32):
I I'm 59 and disabled on disability. Um, and my
husband is 62 right now. He's having side effects from radiation,
which means he's off and only getting half his pay
from work. Um, I work as a childcare provider very
part time. I can only do that in my home
if I try to work outside the home. Um, too
(31:53):
hard on me. Anyway, our situation is a little bit complicated,
I guess. Um, we want to know if we should
rent or stay in our home, which has, it seems
like ongoing problems. We just had a surprise leak in
the house for close to 5 or $6000 with everything
said and done, plus other things that we didn't know about. Um,
(32:13):
we're in a we've only got about $25,000 savings, and
we both need new cars that are extremely old with
a lot of miles. Um, and the things of the
house keep happening. Um, and it's it's just it's very stressful.
We don't know if he should move into a, like
a rental. That's for 55 and up, which would be
about a thousand a month that a place we found
or stay in the house longer and keep putting money
(32:36):
into all these repairs? Yeah. It's like I said, very
stressful situation. And we're I'm just kind of wondering what
is the right way to go about this.
S2 (32:46):
Yeah. Well, I certainly understand that. And you've got a
heavy load on you. Um, just managing all of these
things and not the least of which is just your
husband's health status. Um, what is the value of the home, Carol?
Based on just a reasonable estimation.
S7 (33:03):
Okay. We had a realtor, a realtor, which is very helpful. Um,
tell us that he could sell it for about $265,000. Um,
and so then we'd get some money out of that.
But I also would have to pay some depreciation costs
on the childcare I've been running, which it looks like
would be about 4500 or 5000, which would come off that.
S2 (33:22):
Okay. And do you have a mortgage on it?
S7 (33:25):
No.
S2 (33:26):
Okay. Got it. And is it in both of your
names or just your husband's name?
S7 (33:32):
It's in my name because I lived here before he.
He and I got married.
S2 (33:36):
Okay. Yeah. Um, because one of the options I was
going to say you could look at, um, would be
a reverse mortgage where you essentially get the money out
of the house to do the repairs and stay there
without having a mortgage payment, which would not increase your
monthly expenses. But you do need to be 62 years
(33:57):
old and typically, uh, at a minimum. And you're 59.
Is that right?
S7 (34:03):
Yeah.
S2 (34:04):
Okay. Yeah. So that would probably not be an option. Um,
you know, it may be because I think I'm seeing
in my notes here, your husband is 63, so that
could be something to look at. But essentially you could
get a home equity conversion mortgage where they give you
a line of credit against the equity in your home,
up to 50% that you could use as you needed
(34:26):
for repairs. Things to, you know, keep the home up
and running and, um, and then you would not have
a monthly payment on that. And the amount that you
pull out would grow with interest and fees. And then
at your passing, you and your husband, once you're both
have passed away, then the home would be sold. And
then whatever mortgage balances there would be paid, and then
(34:47):
the rest would be available for heirs or giving to ministry,
whatever it is in your estate. Um, so that would
be one option. The second option certainly is. Yeah. You
you essentially sell that, uh, you know, if you, you know,
you get, uh, 260, 5000, uh, you know, let's say
after expenses, um, you know, you have And 50,000. Uh,
(35:11):
you know, you could put that to work. And if
we gave that to an advisor who invested it conservatively,
I think you could easily, you know, pull enough to cover.
I mean, if not 10,000 a year, I think you
could probably feel good about pulling a thousand a month
out of that, which would essentially cover your rent payment. Um,
(35:32):
and as long as you had enough other income to
cover all the other bills, food and gas in the
car and utilities and, you know, those types of things,
then that would be an option there. Um, did you
have something you needed to pay off when you sell
the home, or would 100% of the proceeds be available to,
you know, generate income?
S7 (35:54):
As of right now, we don't have anything we'd have
to pay off. But we both need we need new cars.
My husband's got 200 and some thousand on his car,
and I've got 140 some on mine. Yeah. And so yeah.
So those are the things. Yeah.
S2 (36:09):
Okay, so with the income you have coming in right now, uh,
are you all able to make ends meet, or are
you going underwater every month? Where are you at with that?
S7 (36:18):
Right now we're going underwater because of this, uh, these
expenses non-stop for this leak. It just keeps adding up.
We just had some concrete laid that we're trying to
get the water to run away from the house, and
they made a mistake on that. Um, so now we
have another problem. Um, and there's other things. So it's
it was only supposed to be 4200, but it's adding
up to 5200, 6200. And it's I'm not able to
(36:39):
work right now at all. He's only working half time
because he's off for illness. Um, so it's we're dipping
into savings right now for all this stuff. Yeah, but
as far as normal, we wouldn't.
S2 (36:52):
Yeah. Got it. Okay, well, I mean, it sounds like
you've got three options. Option one would be you. If
we feel like this is the place where you guys
could stay, you know, for the rest of your life,
as far as you know, um, you could look at
whether you could qualify for the reverse mortgage based on
your husband's age. That would give you access to the
funds to keep the house. You know, in good shape
and live the rest of your life out there. The
(37:15):
second option would be you sell it, and we take
the proceeds, and you invest it with an advisor, and
we use that money to cover the rent. And then
you guys no longer have these, you know, ongoing expenses
you have to pour into the house. And so now
you you construct your budget around the income you have now.
And hopefully that improves if your husband's health is restored
(37:37):
and he can go back even more to full time
work for the time being. But we need a good
long term plan beyond your all being able to work
for income to make sure you've got, you know, the
ability to cover your bills moving forward. Um, and then
the third option would be you sell this and you
take the proceeds and you buy something else, maybe a
little smaller, uh, but in in better shape. So you're
(37:58):
not going to going to have to continue to, you know,
put money into it. But I think the, the 55
and older, you know, place The with the rental you
know may be a great option. It reduces your burden
just in terms of upkeep and maintenance. Even if the
house is in good shape there. Still, as a homeowner,
as you know, plenty of things that have to be
done just on a regular basis. And if this could
(38:19):
get you out of some of that and help you
balance the budget, that sounds like a great option to me.
And it reduces just the stress of the upkeep that
you have in your life. So I think that could
be a good option. I'd probably connect with a certified
Kingdom advisor there in Michigan who can look over your situation.
Who could be the one when you sell the house
(38:40):
to manage the money for you, allowing you to pull
out 4 to 5% a year and hopefully maintain the
principal balance of that quarter of $1 million while you're
pulling out enough to cover the rent. And then, you know,
you just make sure you really dial in to the
rest of the budget, keeping your lifestyle as lean as
possible so that you guys, you know, don't continue to
(39:01):
pull out of savings. Does that make sense?
S7 (39:05):
Yeah it does. I just wonder about a certified Kingdom advisor,
how I would find one and could I talk to
one now, even though we're not selling right this second?
S2 (39:12):
You sure could. Yeah. So do you have access to
the internet?
S7 (39:16):
Yeah.
S2 (39:17):
Okay. Yeah. Just go to our website. Uh, which is
faith Philly.com, faith.com. And then, uh, you would click right
at the top of the page, find a professional, and
you'd put in your zip code and you could find
a list of Sikhs in your area. Reach out to them,
tell them what you're thinking and set up a meeting.
S7 (39:37):
Okay. Thanks.
S2 (39:38):
Appreciate it. All right. Absolutely. Carol, thanks for your call today. Uh,
quickly to Mississippi. Jeff. You'll be our final caller today.
Go ahead. Sir.
S8 (39:46):
Yes, sir. I'm asking, uh, concerned about regulations with, uh,
Social Security. I'm 65. My wife is a few months
older than me, and I was wanting to wait till
I was 67. Um, have a job driving a truck.
It pays percentage only, so some. Some weeks are different
than others. I also have retirement from the military and
(40:07):
the VA, and I was wondering what the regulation is
on the spousal benefit if she's only 66 years old.
S2 (40:16):
Yeah, it's a good question. So essentially, for a spouse
to receive 50%, which is the max they can earn
if they're not on their own work record, but getting
a spousal benefit to get the full 50% of your benefit,
she would have to wait until she's at least full
retirement age. So that's going to be typically between 66
(40:37):
and 67. And then you already have to be claiming
your benefit because you have to walk through the door first.
But as long as you're claiming it and she waits
until she's full retirement age, then she would be able
to get up to that full 50%, uh, you know, of, of, uh,
(40:57):
of her benefit. So are you already collecting Social Security?
S8 (41:02):
No, sir. I was wanting to wait until full retirement,
which would be 67 for me. Yeah, but, um, of
course you think about all the money I'm not getting
at age 65. Yeah, but, uh, I'm thinking, uh, the
way I read it, I understood it. The way you
explained it. She has to be full retirement age to
(41:22):
get the 50% of whatever I'm drawing. Is that correct?
If it's a spousal benefit?
S2 (41:28):
That is correct. And secondly, you have to be collecting.
So you've got to walk through the door first and
then she needs to be full retirement age. And if
you wait until your full retirement age to get your
full benefit, then you know that's going to delay her
collecting hers as a spousal benefit.
S8 (41:45):
Right? The other question real quickly is, uh, is am
I going to be penalized on my Social Security because
I have a military retirement?
S2 (41:53):
Um, well, so are you already collecting, uh, your military retirement?
S8 (41:58):
Yes, sir. I've been collecting since 2020. My military retirement.
S2 (42:03):
Yeah. So they're they're completely separate so they don't reduce
each other. Your military retirement is based on years of service.
Social security is based on your earnings record and payroll taxes,
and one does not affect the other.
S9 (42:17):
Well, I appreciate that. Thank you sir.
S2 (42:19):
All right. Hey, thank you for your service, my friend.
God bless you. Well, folks, it's been a joy to
be along with you today. Thanks for inviting us into
your story. What a joy it is to encourage you
with God's Word as you seek to be that wise
and faithful steward. Our goal that you'd see God.
S9 (42:36):
As your ultimate treasure. Uh, let me say thanks to
my team today. I couldn't do it without him. Amy, Dan,
Gabby T, and Jim Faith in finance live as a
partnership between Moody Radio and Faith Fi. Have a wonderful
day and come back and join us next time for
another edition of Faith and Finance live.
The following programme was pre-recorded so our phone lines are
not open.
S2 (00:08):
Have you ever felt like giving to your church is
more of a burden than a joy? Hi, I'm Rob West.
Today we're starting a new three part series called Why
We Give. Over the next few weeks, we'll explore three
common but harmful motivations for giving reasons that might sound
spiritual on the surface, but actually miss the mark of
biblical generosity. Today's topic guilt. Then we have some great
(00:31):
calls lined up. But we won't be taking your live
calls today because we're pre-recorded. This is faith at finance live.
Biblical wisdom for your financial journey. God loves a cheerful giver.
That second Corinthians nine seven. But let's not miss the
first part of that verse. Paul writes. Each of you
(00:53):
should give what you have decided in your heart to give,
not reluctantly or under compulsion. Those words are important, not
reluctantly and not under compulsion. In other words, giving shouldn't
come from guilt. It should come from joy, freedom, and
a desire to partner with God's kingdom work. Now I
get it. Guilt is a powerful motivator. Maybe you've felt
(01:15):
it sitting in church as the offering plate passes, or
a giving campaign launches and your heart sinks. Thoughts? Race.
I haven't given enough. I'm failing God. That kind of
giving isn't rooted in grace. It's rooted in fear. And
that's a problem. You see, guilt driven generosity misses the
heart of the gospel. Romans eight one reminds us there
(01:36):
is no condemnation for those who are in Christ Jesus.
If that's true and it is, then we need to
be very cautious about any teaching or impulse that leads
us to give because we feel condemned. Christ didn't go
to the cross so we could live under spiritual guilt trips.
He went to the cross to free us from them.
If you're in Christ, your guilt has been dealt with
(01:57):
once and for all, and that includes any guilt you
feel about what you did or didn't put in the
offering plate. Now let's make an important distinction here. There's
a difference between guilt and conviction. Guilt is a tool
of the enemy. It isolates us. It whispers, you'll never
be good enough. But conviction. Well, that's the work of
the Holy Spirit, lovingly inviting us into deeper trust in him.
(02:21):
He says, come, be transformed. Let me shape your heart.
John 16 eight says, The Holy Spirit convicts us not
to shame, but to lead us into truth. So if
you feel stirred to give not out of fear, but
to reflect God's heart, that's not guilt, it's growth. Here's
a helpful way to tell the difference. Guilt says I
(02:41):
must give, or else Grace says, I get to give
because of all I've received in Christ. There's a powerful
passage in Hebrews nine that explains how the blood of
Christ cleanses us so we can serve God with a
clear conscience. Verse 14 says this how much more then
will the blood of Christ cleanse our consciences from acts
(03:02):
that lead to death, so that we may serve the
living God? Notice that it's only when our consciences are
cleansed that we're truly free to serve. The same is
true with giving. We can't give faithfully while carrying guilt.
We need to be reminded of the gospel of grace.
Here's the irony. Giving out of guilt actually blocks the
transformation that generosity is meant to bring. When we give cheerfully,
(03:25):
we're reminded that all we have is from God. That
we're stewards, not owners. That reshapes us from the inside out.
Let me say it this way. When we give out
of guilt, we're missing out on walking in the freedom
of the gospel. But when we give with joy, we're
declaring that Jesus is enough. We don't give to earn
God's love. We already have it. We don't give to
(03:46):
cover up shame. Jesus already took that. We give because
we've been invited to participate in something beautiful. God's kingdom
work in the world. So what if you realize that
guilt has been shaping your giving? Well, first bring that
to the Lord. Don't run from it. Confess it and
ask him to renew your heart. Second, reflect on how
(04:06):
God has provided. Gratitude is the seedbed of generosity. When
we remember what God has already done, we stop giving
to earn his favor and start giving because we already
have it. And finally ask, what does joyful giving look
like in this season? Not compared to others, but in
light of your own journey with God. Because God isn't
after your money, he's after your heart. And when he
(04:29):
has your heart, generosity will follow not from guilt but
from grace. By the way, you can explore more on
this topic for the right reasons. In the latest issue
of Faithful Steward or Quarterly Magazine for Faithful Partners, when
you give $35 a month or a one time gift
of $400 or more per year, you'll join a community
(04:50):
committed to spreading biblical financial wisdom. You can become a
partner today or learn more at Faith. That's faith. And
by the way, as a listener supported ministry, partners are
critical to the work we do so we can equip
millions to be wise and faithful stewards. Now, next week,
(05:13):
we'll continue this series by looking at another harmful motivation
for giving control. You won't want to miss it. Just
a quick reminder we're not here today, so don't call in.
But we're going to head to a break and much
more coming just after this. Stay with us. I'm so
(05:35):
thankful you're joining us today on Faith and Finance Live
I'm Rob West. Hey, just a quick reminder. Our team
is away from the studio today, so don't call in.
But in just a few moments, we're going to get
to some questions that we lined up in advance that
I know you'll find very interesting, but let me take
a moment just to invite you first to be a
supporter of this ministry here at Faith fi. You know,
(05:56):
we bring you this broadcast every day as a listener
supported ministry only because of your generous support. So maybe
you listen regularly. Perhaps you count on this program. Maybe
you've been able to apply some of the wisdom from
God's Word that you've heard in your financial life, or
it's just help you to be that wise and faithful steward,
(06:17):
and you'd like to be a part of our team. Well,
one way you can do that is by investing in
this work through a one time gift, or even by
becoming a faith life partner. I just invite you to
join us on this journey. When you head to faith.com
and click give, a gift of any amount would be
a big help. Again, that's faith. And just click give
(06:38):
and let me say thank you in advance. Your gift
will make a huge difference. Now we're going to dive
in here in just a moment. We'll begin with Michael
in Ohio. But first in the news starting in In 2026.
Children born between 2025 and 2028 will receive a $1,000
federal deposit into a new Trump account. That's right. It's
(07:02):
called the Trump account. It's a tax advantaged savings vehicle
designed to jump start long term investing. Parents and employers
can contribute up to $5,000 in $2,500 annually, respectively, with
funds invested in a low cost US stock index. Now,
while the intent is to build wealth early through compound growth,
(07:25):
there are significant limitations. Trump accounts operate like traditional IRAs.
They grow tax deferred, but early withdrawals before 59.5 face
a 10% penalty. Even though funds become accessible at age 18,
qualified early withdrawals, such as for education or a first
(07:45):
time home purchase, may be allowed but remain partially taxable,
experts note the account lacks key advantages of Roth or
529 plans, offering neither tax free withdrawals nor flexible investment options,
compared to 529 plans which allow higher contributions. Diversified investments
(08:07):
and tax free education withdrawals Trump accounts may offer less
flexibility for college savings. Still, the $1,000 seed makes the
account attractive for eligible families. Wealthier families may pair Trump
accounts with 520 nines to diversify future savings, but most
Americans aren't maxing out, either. While additional IRS guidance is needed,
(08:32):
financial planners agree that Trump accounts are best viewed as
a long term retirement tool for children rather than a
primary savings vehicle for college. But nevertheless, it's in play
as a part of the new legislation, the Trump account
is coming your way. And so, uh, well, I think
it's a great thing to incent long term savings. We'll
(08:54):
keep you posted as more details come out. All right.
Let's dive into your questions today. Let's go to Ohio.
Michael go ahead sir.
S3 (09:01):
Thank you for taking my call.
S2 (09:02):
Of course.
S3 (09:03):
Rob, I'm getting ready to solidify an investment opportunity. A
one acre lot in Strongsville. I've been told by the
city they're $20,000 is a fair and equitable offer. I'm
considering taking a home equity loan on my condo for
the $20,000. The condo is currently valued at $138,000 by
(09:24):
the bank. The interest rate for a 20 year payment
would be 7.290, and my payments would be one 5856
a month. My current living expenses are just under $2,400
a month, not including vehicle repairs and food. I currently
earn between two full time employers between 75 and $85,000
a year. I plan on putting a ranch on the
(09:46):
property either 25,000 or 30,000ft² and giving the property to
my niece and nephew.
S2 (09:53):
I love that, yeah. So you're just wondering whether this
home equity loan makes sense.
S3 (09:58):
If the home equity loan makes sense? I've heard it
on your radio broadcast this past couple of weeks. You
anticipate that interest rates are going to drop in the
next six months to a year, or bases on only
$158.56 a month. I could pay off the loan in
three years like I did my condo in three years.
S2 (10:16):
Okay. Yeah. Very good. So you've got quite a bit
in surplus every month, and you're going to put that
toward paying down the loan, correct?
S3 (10:25):
Yes. You're paying the principal on the loan immediately within
three years.
S2 (10:29):
Yeah. Great. I love that. I mean, the only change
I might make here is for you to consider a
home equity line of credit. Uh, just because that will
give you that variable rate. So as rates do come down,
that interest rate will come down. Now typically while the
line is open. They only require interest only. But obviously
(10:49):
you're you're not going to follow suit. You're going to,
you know, really go after that principal, which would be great.
But I'd much rather you have that variable rate that
will come down with the fed funds rate, rather than
you locking in at that 7.5% rate. Does that make sense?
S3 (11:05):
That makes sense. I'll have to consider that when I
talk to the bank right now, I'm tweaking my trust
for that.
S2 (11:11):
Okay. Yeah. Very good. I think the other thing is
just look at, you know, you may want to get
2 or 3 bids because there are some banks out
there offering home equity lines of credit that are essentially
fee free, uh, where, you know, maybe they'll cover the
cost of the appraisal or, you know, there won't be
any kind of, uh, administrative or, you know, fees or
(11:33):
origination fees, things like that. And so they're not all
created equal. You need to look at what is the
interest rate. Often it might be prime plus one. Um,
you know, the the prime rate right now, uh, is
sitting at, uh, I believe it's sitting at 7.5%. So
if it's prime plus one, it might be 8% 8.5%.
(11:57):
But you may find one that's not only fee free,
but maybe it's prime plus zero. Uh, so I think
shopping it around and getting a few quotes, you know,
would be good. But overall, Michael, I love the plan.
I mean, you're living way below your means. Sounds like
you've got a good buy here. You're going to pay
it off in three years. You're looking to be generous
with it, uh, to leave it to or give it
(12:18):
to a family member. You know, I don't I don't
disagree with any of that.
S3 (12:22):
Uh, the bank told me that there is no administrative fee.
Just one cost of $41.50 for some kind of paper
fee or something of that appraisal or something. Just $41.50.
S2 (12:33):
Okay. Yeah. I mean, normally an appraisal might be 2
or $300. So yeah, you just want to make sure
that they give you the truth in lending. So you
can look at any fees both hidden and, you know
those that they mention. But I think if they're giving
you a pretty attractive offer there, I would check out
the opportunity to get that variable rate tied to the
home equity line of credit. The other thing that also
(12:54):
happens with the HELOC is as you pay that money back,
it becomes available to you. And so if you wanted
to use a portion of that for construction, or you
wanted to buy another property, you could, you wouldn't have to.
It'll just sit there. But it does continue to stay
available to you. Now, once you decide to build the dwelling,
you're probably going to want to limit, you know, any
(13:16):
kind of borrowing to that property itself rather than tying
it to your primary residence. I would rather you not
have your your primary residence encumbered and really just have
everything relegated to the the property where you're going to
be ultimately building. But overall, I think this is a
great plan. Michael, I'm on board.
S3 (13:35):
And three and a half years I'll file for the
Social Security. They don't kick me $3,000 a month.
S2 (13:40):
There you go.
S3 (13:41):
And in addition to the 75 to $85,000.
S2 (13:44):
Yeah, I love it, man. It sounds like you've really
thought this through. I love that you're living modestly. I
love that you're a generous guy. Sounds like you got
all your ducks in a row. Thanks for calling, my friend.
We appreciate you being on the program. Hey, stay on
the line. I want to send you a copy of
our magazine. Faithful steward. I think you'll enjoy it. Well, folks,
before we head to this break, let me remind you,
if you haven't checked out faith. Com. That's faith. Com.
(14:09):
I'd love for you to do that. You'll find the
best content in biblical finance there for you to grow
in your understanding of managing money God's way. You'll find
our community and the money management system. It's all there
at Faith comm. Now, again, a reminder we're not here today,
but more of your questions that we lined up after
the break. Great to have you with us today on
(14:35):
Faith and finance live. I'm Rob West. Our team is
away from the studio today. We're not here, so don't
call in. But we lined up some great questions in
advance and we'll get to those in just a moment first.
You know, as I look at the scriptures, one of
the big ideas that literally jumps off the page when
you look at this area of finance in light of
a biblical worldview, is the idea of contentment. We should
(14:58):
foster an attitude of contentment. And I think that's the
first understanding is that it is, in fact, an attitude.
Matthew 633 says, but seek first the kingdom of God
and his righteousness, and all these things will be added
to you. If our aim is the kingdom, then that
changes our perspective. It makes it focused on the eternal,
(15:19):
not the temporal. And that's a game changer. Well then,
from an attitude, we learn that contentment is in fact
learned by the apostle. Paul said it this way, not
that I'm speaking of being in need, for I have
learned in whatever situation I am to be content. That's
Philippians 411. So it's a learned behavior. It's also a choice.
(15:41):
You know, I can choose to be content in every circumstance.
Rich or poor, happy or sad, easy or difficult. Because
as Christ followers, well, our position in Christ never changes.
And I think that's an important reminder for us today.
And perhaps it could change your whole approach to your money.
All right, let's head back to the phones. Oklahoma is
(16:02):
where we're headed next, Bob. Go ahead. Sir.
S4 (16:04):
Yes, sir. Uh, I, uh, kind of bashful here a
little bit on the phone, but anyway.
S2 (16:12):
Hey, you're going to do great, Bob. I'm thrilled you
called today.
S4 (16:17):
Well, I, uh, I'm trying to. I'm getting close to retiring.
I'm 70. Going to be 73 this year, and I'm
looking at, uh, retiring, uh, probably in about a year. And, um,
I've got a 401 K that's got roughly about 120
or so K in it. And then, uh, my wife
(16:41):
has a little, uh. IRA, that's about 12,000. I don't know,
I've often thought that I needed to get it out
of where it's at. It's like Edward Jones, and I
don't think they're taking good care of it, really. But anyway, um, uh,
we've got a couple of houses, our residents, and then
(17:02):
a rental house and stuff. Um, and I'm also retired military,
so I'm not doing I think I'm going to be
okay by walking away, uh, from from my job, but
I'm a little bit nervous about it, and and I'm also, I,
(17:23):
I want to preserve as much of that, uh, that
120,000 in the, uh, 401 K as I can for
as long as I can, obviously, and maybe even give
some of it to my kids. Yeah. But, uh, anyway,
I'm just, uh. Well, uh, for one thing, uh, I
(17:46):
know that it's it's roughly. I'm not sure if I'm 40,
60 or it maybe even 70, 75, 25 as far
as stocks. Yeah. In there. And I've done really well
with it or fairly well anyway. I mean, yeah, you know,
we had some downturns and everything like that, but um, I,
(18:07):
I mean, I probably I was thinking about it the
other day and I probably only have roughly of actual
dollars that I've invested, maybe $60,000. So I've basically doubled
it since I've been doing it. But, um.
S2 (18:21):
That's great. Well, that's all really helpful background, Bob. You know,
I think the there's several things here. Uh, number one is,
you know, you you have planned. Well, it sounds like
you have lots of, of pieces here. Are you already
earning your military retirement plus collecting Social security?
S4 (18:40):
Yes, sir.
S2 (18:41):
Okay. And the combination of those two. Um, even before
your full time income, are those enough to meet your
bills every month?
S4 (18:50):
I think I think it's real close. If not. If not? Yes.
S2 (18:55):
So I think that's kind of the question you need
to solve for first and foremost. And perhaps it means
you need to take another look at that budget and
just kind of dial into what are our both fixed
and discretionary expenses fixed. The things we get a bill
for discretionary, the things we spend money on that we
don't get a bill for. But they they happen routinely,
(19:16):
maybe not every month but but regularly and get everything
into the budget to figure out what is it going
to take for us to fund our lifestyle. And the
question is going to be if Social Security plus the
military retirement, plus, you know, any rental income after expenses and,
you know, property taxes and insurance and anything you'd put
(19:37):
aside for repairs, um, you know, anything that you have
extra every month, uh, you know, when you put all
that together, if that's enough. Well, then, you know, you're
just kind of able to continue to work to bring
God glory. We were created to be workers. So I
love the fact that you're continuing to work and be productive.
I think that's part of God's design. But there may
come a time, sooner rather than later where you're going to,
(19:59):
you know, transition to something else that God has for
you and that may or may not involve pay. And
we're going to want to know, you know, are your
bills covered? And if so, that gives you then the
freedom to just let this roughly 130,000 continue to grow
like it has been. And you could either leave it there,
it sounds like you've done well. The 401 K makes
(20:19):
it pretty simple because you have that menu of investment
options or in general. This is what I recommend. When
you retire, you roll it out to an IRA and
you just have an advisor take over and manage it
for you. And and then that person can also help
you do some planning, you know, just to make sure
that your estate is in order that, you know, you've
you've addressed things like a living will and a health
(20:42):
care surrogate and a durable power of attorney. And you
know that you have thought about long term care and
what you're going to do if you need that and
give oversight to the investments with your goals and objectives
in mind. I think you're right. I think, you know,
at 70, we probably want somewhere around a 70, 30, uh,
portfolio with, you know, probably 30% in stocks, maybe 70% bonds.
(21:06):
If this is money you don't need and you're really
thinking beyond your life and your wife's toward the kids,
you know, maybe you even go 60, 40 with 40%
in stocks because, you know, even you at 72, you
need to be thinking about a couple of decades or
more in terms of this money lasting. And then beyond that,
you know, you're thinking about growing this for the kids
(21:27):
to benefit from. And so, you know, that may cause
you to say, maybe I'm going to keep a little
bit more in stocks than I would if this was
money I was drawing down every month because I was
living on it. If that makes sense. So let's do this.
I've got to hit a break, but you and I'll
finish up off the air. Bob, I want to see
if you have any follow up questions, and I'll be
sure to tackle those as we head to the break.
(21:48):
Let me remind you quickly, we're not here today. We're
away from the studio, so don't call in. But more
questions that we lined up in advance just around the corner.
Stick around. Grateful you tuned in to Faith and finance live.
I'm Rob West, your host. This is where we recognize
that God owns it all. You're a steward or a
(22:11):
manager of God's resources, and money is a tool to
accomplish God's purposes. Hey, we're away from the studio today,
so don't call in. But we lined up some great
questions in advance that I know you will enjoy. In fact,
let's go ahead and take one of those right now. Uh,
to Texas. We go. Hi, Gary. How can I help you, sir?
S5 (22:30):
Hey. I'm a first time home buyer. If this goes through.
I was wondering if you had any advice on what
to do. If it's a, uh. I assume a buyer's
market is, uh. The word I would be looking for
would be on my advantage. What do you think about that?
And before you before I got a second question, if
(22:53):
that's a possible.
S2 (22:54):
Yeah. Go ahead with that second question.
S5 (22:57):
Okay. Along with the, uh, house, a piece of land
is added to it. And I was thinking about putting. But,
I mean, uh, setting up, uh, eight RV spots on
that land.
S2 (23:13):
Okay.
S5 (23:14):
I like your opinion on this.
S2 (23:16):
Alrighty. Uh, yeah. Let's start with the first part of that, uh, question. Uh,
you know, I think first of all, when you're in
a buyer's market, uh, essentially you benefit from lower prices
because there's more supply and less demand, more negotiating power,
because buyers can often negotiate on price and closing costs
(23:37):
a little bit more significantly than if we're in a
seller's market. It's driven by the fact that there's more inventory.
So that's another benefit because you have more homes to
choose from and you've got less competition. Now the question is,
are we in a buyer's market right now? Um, I
would say in most areas across the US, this is
really still largely a seller's market, but it's starting to
(24:01):
shift in some regions. Um, you know, the, the high
mortgage rates that have been stickier than we expected, meaning,
you know, we thought they would have started to come
down by now. And they haven't because the fed has
kept interest rates steady. On the fear of inflation rising,
largely due to the tariffs and some of the uncertainty, um,
that has cooled buyer demand. Uh, inventory is still, uh,
(24:27):
you know, is slowly increasing, but it's still, uh, you know,
fairly low. Meaning we still have a shortage of homes
in this country. And then prices are stabilizing or dipping
in certain areas. So it really depends on where you live.
You know, real estate can be hyper local. Um, you know,
but at the end of the day, as a first
time homebuyer, you know, I think the keys are, first
(24:50):
of all, know what you can afford. And one of
the gauges for that would be, you know, do I
have at least a 20% down payment? And will my, uh,
you know, my mortgage payment be no more than 25 max, 30%, uh,
of your take home pay? Um, and then second would be,
you know, check your credit and get pre-approved. Um, so
(25:13):
the higher the credit score, the the better the loan terms.
And you don't want to just get pre-qualified. You want
to get pre-approved. This shows a seller that you're serious
and you're ready. You also want to not neglect to
plan for ongoing costs. So you need to be able
to budget for not only the principal interest, taxes and
insurance payment, the monthly payment, but you need to budget
(25:35):
for repairs and maintenance. You know, things like that, because
you know you're going to have those that come up
along the way. You know you're responsible, unlike when you
rent for the water heater, you know, going out and
you got to be ready for that. Um, and then
I would finally say, don't go it alone. I think
a trusted realtor who knows your area, who can negotiate
for you, who can walk through the process with you, uh,
(25:58):
is really key to you being able to do this? Well. Uh,
but let me stop there first and just see if
you have any questions on any of that.
S5 (26:06):
Well, it's going to be my cousin, so it's already
a done deal if I, you know, and he said,
since my aunt. Well, beside the point we took care
of my aunt, as you know, got older And he said,
you know, you did me a solid. I'm going to
(26:26):
do you a solid when it comes to selling it.
Selling this house to us. To me.
S2 (26:32):
Yeah. So now what do you what are you gauging
the price on? Um, did you do a comparative market
analysis or an appraisal?
S5 (26:43):
I sure didn't.
S2 (26:44):
Yeah. I would do that. And I'm not saying your
cousin's misleading you in any way, but I just think
it's also helpful to know what is this property actually worth?
Not what we think it's worth, but what it's actually
worth based on, you know, a real appraisal.
S5 (27:00):
Well, the, uh, we're going by what the county said
and what the homes around it cost. And, uh, I
know it's worth more than 190,000. That and the land.
S2 (27:14):
Okay. All right. Yeah. I mean, just as long as
you as as long as you've got good reason to
believe that, um, you know, where you're adjusting the comparables
around it for the features of this property, but it
sounds like if you're convinced, yeah, this is below market.
And he's, you know, doing you a favor. That's great. Um,
there may be some tax implications to that in terms of,
(27:35):
you know, him selling it below market, if that's truly
what's happening. The difference between what it's really worth and
what he sells it to you for would essentially be
considered a gift. Um, and so that just may be
something you want to mention to him. But apart from that, um,
I mean, that solves for a lot of things. Uh,
but you are going to want to have at least
a real estate attorney just kind of help you with
(27:56):
the closing and the real estate contract and just making
sure that everything is filed properly and done the way
it should be.
S5 (28:06):
Fantastic. I'm glad you said that.
S2 (28:09):
Yeah.
S5 (28:09):
Okay. What about the, uh, RV? Maybe a little. I'm
talking about an RV park. Maybe.
S2 (28:15):
All right. And this is a property. Um, this is
a property. A piece of land attached to the home
that you're buying.
S5 (28:23):
Yeah, it's right beside it.
S2 (28:25):
Okay. And give me a little bit of an overview
of what you're thinking about doing.
S5 (28:30):
Uh, setting up, uh, maybe eight, 6 to 8, uh, RVs.
And I know around that area, they go about $500
a month, give or take, you know, in that area.
So that's what I'm going by, maybe putting 6 to
8 in there and wondering what, what that would entail
(28:53):
as far as the income and then having to pay.
You can't do that as it like saying that's just
me doing this. I guess the government's going to want
their cut.
S2 (29:04):
Yeah. Yeah. I mean, I think, I mean, basically you're
starting a business here and so you've got to do
everything you would do when no matter what kind of
business you're starting, which is, first of all, the the government, uh,
zoning and permits, you've got to check with the county
or the city. Is the land zoned for RV use
or short term rentals. You're going to need permits and
(29:25):
a site plan and utility hookups that can be expensive.
You've got to understand the full startup costs. It's not
just the land. It could be costs for grading or
the pads or, you know, the utilities. Like I mentioned,
the amenities. You've got insurance and maintenance and possible management costs. Um,
you know, if the demand is strong, you could see
(29:46):
solid returns. Um, you know, but there's seasonal slowdowns. And
so you just need to, you know, understand that you're
getting into something that's going to require active management. You
could hire help, but that's going to eat into the profits.
But I just want to make sure that the zoning
allows it. The numbers make sense. And you've got a
really good plan for the startup costs before you go
(30:08):
into this and kind of get over your head or,
or get, you know, beyond your means and have to
take on some debt, uh, to see this through. Does
that make sense?
S5 (30:17):
Yeah, but but the deal is, is, uh, where I work,
I can get the equipment to do most of all the, uh,
water lines. Sewer lines, pads.
S2 (30:26):
Okay.
S5 (30:27):
Putting up, uh, like you said, the, uh, for the electricity.
S2 (30:32):
Yep. Yep. So that's great. And maybe that saves some cost,
but you just need to think about everything else. The
zoning and the permits, the insurance, the ongoing management of it. Sure,
there's income potential, but you just really need a full
business plan. So I would just make sure you look
at each aspect of that and have a plan for
it before you go ahead. Thanks for your call, Gary.
We'll be right back.
S6 (31:08):
You're listening to Faith and Finance Live, and you can
find us online at. However, today we are not live.
So if you hear that phone number, please don't call.
But do stay with us. There's lots of good information ahead.
S2 (31:24):
Let's go to Michigan. Hi, Carol. Thanks for your patience.
Go right ahead.
S7 (31:27):
Hi. Thanks for taking my call. I've called a couple times,
so I really appreciate it.
S2 (31:31):
Absolutely.
S7 (31:32):
I I'm 59 and disabled on disability. Um, and my
husband is 62 right now. He's having side effects from radiation,
which means he's off and only getting half his pay
from work. Um, I work as a childcare provider very
part time. I can only do that in my home
if I try to work outside the home. Um, too
(31:53):
hard on me. Anyway, our situation is a little bit complicated,
I guess. Um, we want to know if we should
rent or stay in our home, which has, it seems
like ongoing problems. We just had a surprise leak in
the house for close to 5 or $6000 with everything
said and done, plus other things that we didn't know about. Um,
(32:13):
we're in a we've only got about $25,000 savings, and
we both need new cars that are extremely old with
a lot of miles. Um, and the things of the
house keep happening. Um, and it's it's just it's very stressful.
We don't know if he should move into a, like
a rental. That's for 55 and up, which would be
about a thousand a month that a place we found
or stay in the house longer and keep putting money
(32:36):
into all these repairs? Yeah. It's like I said, very
stressful situation. And we're I'm just kind of wondering what
is the right way to go about this.
S2 (32:46):
Yeah. Well, I certainly understand that. And you've got a
heavy load on you. Um, just managing all of these
things and not the least of which is just your
husband's health status. Um, what is the value of the home, Carol?
Based on just a reasonable estimation.
S7 (33:03):
Okay. We had a realtor, a realtor, which is very helpful. Um,
tell us that he could sell it for about $265,000. Um,
and so then we'd get some money out of that.
But I also would have to pay some depreciation costs
on the childcare I've been running, which it looks like
would be about 4500 or 5000, which would come off that.
S2 (33:22):
Okay. And do you have a mortgage on it?
S7 (33:25):
No.
S2 (33:26):
Okay. Got it. And is it in both of your
names or just your husband's name?
S7 (33:32):
It's in my name because I lived here before he.
He and I got married.
S2 (33:36):
Okay. Yeah. Um, because one of the options I was
going to say you could look at, um, would be
a reverse mortgage where you essentially get the money out
of the house to do the repairs and stay there
without having a mortgage payment, which would not increase your
monthly expenses. But you do need to be 62 years
(33:57):
old and typically, uh, at a minimum. And you're 59.
Is that right?
S7 (34:03):
Yeah.
S2 (34:04):
Okay. Yeah. So that would probably not be an option. Um,
you know, it may be because I think I'm seeing
in my notes here, your husband is 63, so that
could be something to look at. But essentially you could
get a home equity conversion mortgage where they give you
a line of credit against the equity in your home,
up to 50% that you could use as you needed
(34:26):
for repairs. Things to, you know, keep the home up
and running and, um, and then you would not have
a monthly payment on that. And the amount that you
pull out would grow with interest and fees. And then
at your passing, you and your husband, once you're both
have passed away, then the home would be sold. And
then whatever mortgage balances there would be paid, and then
(34:47):
the rest would be available for heirs or giving to ministry,
whatever it is in your estate. Um, so that would
be one option. The second option certainly is. Yeah. You
you essentially sell that, uh, you know, if you, you know,
you get, uh, 260, 5000, uh, you know, let's say
after expenses, um, you know, you have And 50,000. Uh,
(35:11):
you know, you could put that to work. And if
we gave that to an advisor who invested it conservatively,
I think you could easily, you know, pull enough to cover.
I mean, if not 10,000 a year, I think you
could probably feel good about pulling a thousand a month
out of that, which would essentially cover your rent payment. Um,
(35:32):
and as long as you had enough other income to
cover all the other bills, food and gas in the
car and utilities and, you know, those types of things,
then that would be an option there. Um, did you
have something you needed to pay off when you sell
the home, or would 100% of the proceeds be available to,
you know, generate income?
S7 (35:54):
As of right now, we don't have anything we'd have
to pay off. But we both need we need new cars.
My husband's got 200 and some thousand on his car,
and I've got 140 some on mine. Yeah. And so yeah.
So those are the things. Yeah.
S2 (36:09):
Okay, so with the income you have coming in right now, uh,
are you all able to make ends meet, or are
you going underwater every month? Where are you at with that?
S7 (36:18):
Right now we're going underwater because of this, uh, these
expenses non-stop for this leak. It just keeps adding up.
We just had some concrete laid that we're trying to
get the water to run away from the house, and
they made a mistake on that. Um, so now we
have another problem. Um, and there's other things. So it's
it was only supposed to be 4200, but it's adding
up to 5200, 6200. And it's I'm not able to
(36:39):
work right now at all. He's only working half time
because he's off for illness. Um, so it's we're dipping
into savings right now for all this stuff. Yeah, but
as far as normal, we wouldn't.
S2 (36:52):
Yeah. Got it. Okay, well, I mean, it sounds like
you've got three options. Option one would be you. If
we feel like this is the place where you guys
could stay, you know, for the rest of your life,
as far as you know, um, you could look at
whether you could qualify for the reverse mortgage based on
your husband's age. That would give you access to the
funds to keep the house. You know, in good shape
and live the rest of your life out there. The
(37:15):
second option would be you sell it, and we take
the proceeds, and you invest it with an advisor, and
we use that money to cover the rent. And then
you guys no longer have these, you know, ongoing expenses
you have to pour into the house. And so now
you you construct your budget around the income you have now.
And hopefully that improves if your husband's health is restored
(37:37):
and he can go back even more to full time
work for the time being. But we need a good
long term plan beyond your all being able to work
for income to make sure you've got, you know, the
ability to cover your bills moving forward. Um, and then
the third option would be you sell this and you
take the proceeds and you buy something else, maybe a
little smaller, uh, but in in better shape. So you're
(37:58):
not going to going to have to continue to, you know,
put money into it. But I think the, the 55
and older, you know, place The with the rental you
know may be a great option. It reduces your burden
just in terms of upkeep and maintenance. Even if the
house is in good shape there. Still, as a homeowner,
as you know, plenty of things that have to be
done just on a regular basis. And if this could
(38:19):
get you out of some of that and help you
balance the budget, that sounds like a great option to me.
And it reduces just the stress of the upkeep that
you have in your life. So I think that could
be a good option. I'd probably connect with a certified
Kingdom advisor there in Michigan who can look over your situation.
Who could be the one when you sell the house
(38:40):
to manage the money for you, allowing you to pull
out 4 to 5% a year and hopefully maintain the
principal balance of that quarter of $1 million while you're
pulling out enough to cover the rent. And then, you know,
you just make sure you really dial in to the
rest of the budget, keeping your lifestyle as lean as
possible so that you guys, you know, don't continue to
(39:01):
pull out of savings. Does that make sense?
S7 (39:05):
Yeah it does. I just wonder about a certified Kingdom advisor,
how I would find one and could I talk to
one now, even though we're not selling right this second?
S2 (39:12):
You sure could. Yeah. So do you have access to
the internet?
S7 (39:16):
Yeah.
S2 (39:17):
Okay. Yeah. Just go to our website. Uh, which is
faith Philly.com, faith.com. And then, uh, you would click right
at the top of the page, find a professional, and
you'd put in your zip code and you could find
a list of Sikhs in your area. Reach out to them,
tell them what you're thinking and set up a meeting.
S7 (39:37):
Okay. Thanks.
S2 (39:38):
Appreciate it. All right. Absolutely. Carol, thanks for your call today. Uh,
quickly to Mississippi. Jeff. You'll be our final caller today.
Go ahead. Sir.
S8 (39:46):
Yes, sir. I'm asking, uh, concerned about regulations with, uh,
Social Security. I'm 65. My wife is a few months
older than me, and I was wanting to wait till
I was 67. Um, have a job driving a truck.
It pays percentage only, so some. Some weeks are different
than others. I also have retirement from the military and
(40:07):
the VA, and I was wondering what the regulation is
on the spousal benefit if she's only 66 years old.
S2 (40:16):
Yeah, it's a good question. So essentially, for a spouse
to receive 50%, which is the max they can earn
if they're not on their own work record, but getting
a spousal benefit to get the full 50% of your benefit,
she would have to wait until she's at least full
retirement age. So that's going to be typically between 66
(40:37):
and 67. And then you already have to be claiming
your benefit because you have to walk through the door first.
But as long as you're claiming it and she waits
until she's full retirement age, then she would be able
to get up to that full 50%, uh, you know, of, of, uh,
(40:57):
of her benefit. So are you already collecting Social Security?
S8 (41:02):
No, sir. I was wanting to wait until full retirement,
which would be 67 for me. Yeah, but, um, of
course you think about all the money I'm not getting
at age 65. Yeah, but, uh, I'm thinking, uh, the
way I read it, I understood it. The way you
explained it. She has to be full retirement age to
(41:22):
get the 50% of whatever I'm drawing. Is that correct?
If it's a spousal benefit?
S2 (41:28):
That is correct. And secondly, you have to be collecting.
So you've got to walk through the door first and
then she needs to be full retirement age. And if
you wait until your full retirement age to get your
full benefit, then you know that's going to delay her
collecting hers as a spousal benefit.
S8 (41:45):
Right? The other question real quickly is, uh, is am
I going to be penalized on my Social Security because
I have a military retirement?
S2 (41:53):
Um, well, so are you already collecting, uh, your military retirement?
S8 (41:58):
Yes, sir. I've been collecting since 2020. My military retirement.
S2 (42:03):
Yeah. So they're they're completely separate so they don't reduce
each other. Your military retirement is based on years of service.
Social security is based on your earnings record and payroll taxes,
and one does not affect the other.
S9 (42:17):
Well, I appreciate that. Thank you sir.
S2 (42:19):
All right. Hey, thank you for your service, my friend.
God bless you. Well, folks, it's been a joy to
be along with you today. Thanks for inviting us into
your story. What a joy it is to encourage you
with God's Word as you seek to be that wise
and faithful steward. Our goal that you'd see God.
S9 (42:36):
As your ultimate treasure. Uh, let me say thanks to
my team today. I couldn't do it without him. Amy, Dan,
Gabby T, and Jim Faith in finance live as a
partnership between Moody Radio and Faith Fi. Have a wonderful
day and come back and join us next time for
another edition of Faith and Finance live.
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