June 27, 2025 • 42 mins
Ecclesiastes shows us how even good work can go wrong when we are driven by envy. What starts as diligence can quickly become a pursuit of status. Rob West looks at how chasing approval leaves us empty—and how God invites us into something much greater. Then, he addresses your calls on various financial topics. That’s on 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 (00:11):
Then I saw that all toil and all skill and
work come from a man's envy of his neighbor. This
also is vanity and a striving after wind. Ecclesiastes four four. Hi,
I'm Rob West. Ecclesiastes shows us how even good work
can go wrong when driven by envy. What starts as
diligence can quickly become a pursuit of status. Today we'll
(00:33):
look at how chasing approval leaves us empty and how
God invites us into something much greater. Then it's on
to your calls at 855 7000. This is faith and finance.
Live biblical wisdom for your financial journey. The Bible says
Ecclesiastes targets all the ways we try to build meaning
(00:56):
and purpose in life apart from God. It gives voice
to the preacher, who carefully exposes the emptiness of paths
like pleasure, wealth, and status. In recent weeks, we've looked
at the idols of pleasure and accumulation. Today we turn
to the idol of status. This one can be harder
to spot. The line between excellence and envy is thin.
(01:18):
Ecclesiastes four four says, then I saw that all toil
and all skill and work come from a man's envy
of his neighbor. That's a striking thought. Our motivation may
not be love of the work or calling. It's often
the quiet urge to compete, to keep up, to be seen.
That's what status does. It whispers you're not enough unless
(01:40):
others notice you. And without realizing it, our careers, spending,
and even our generosity can become ways of proving our worth.
Keeping up with the Joneses isn't just a saying, it's
a way of life for many. We compare houses, vacations, schools,
and the pressure to match others can lead to debt, burnout,
and dissatisfaction with what God has already provided in our
(02:04):
digital age. The pressures amplified. Social media showcases only the
highlight reel, not the debt, exhaustion or stress that often
accompany it. But we still scroll and wonder why not me?
Ecclesiastes answers that longing with honesty. In verse eight, the
preacher describes someone who works tirelessly, builds wealth, but has
(02:25):
no one to share it with. There is no end
to all his toil, and his eyes are never satisfied
with riches. It's a picture of success without joy, activity
without peace. A full schedule, but an empty soul. But
then he offers a better way. In verse six, we
read better is a handful of quietness than two hands
(02:46):
full of toil and a striving after wind. In other words,
it's better to have less with peace than more with anxiety.
That's not laziness, it's wisdom. A life lived with margin
grounded in God's provision. This is the invitation Ecclesiastes extends
not to give up on excellence, but to anchor it
in the right place. When our work flows from a
(03:08):
love for God and a desire to serve others, it
becomes a blessing, not a burden. It becomes worship. We
don't need applause. We need peace. And in Christ we
already have it. His approval is not based on performance.
It's based on grace that frees us from striving to
be seen and lets us rest in being known. Maybe
that's where you are tired, overextended, wondering what you're chasing.
(03:32):
Ecclesiastes invites you to step off the treadmill of comparison.
You don't have to strive for identity. You already have it.
In Jesus, we see examples of this all the time.
A professional sacrifices evenings and weekends to climb the corporate ladder,
only to feel lonely at the top. A family maxes
out their budget to project an image while tension quietly
(03:54):
builds at home. These aren't just stories, they're warnings. They
also echo Ecclesiastes caution about what we're trading in our
pursuit of more. Sometimes this isn't just about envy. It's
about fear. Fear of being unseen, of being left behind.
So we push harder, hoping success will quiet that fear.
But only God can give the peace we're looking for.
(04:17):
Contentment doesn't mean quitting. It means redefining success. It means
anchoring your worth in something that lasts. When you stop
striving in vain, your ambition gets reoriented. Your work becomes
more joyful. Your giving becomes more meaningful. So today, ask yourself,
who am I trying to impress? What am I really chasing?
(04:39):
If your hands are full but your heart is empty,
Ecclesiastes invites you to trade performance for peace. True success
isn't about being noticed or admired. It's about being faithful
with what God has given you. It's not something you
have to earn or achieve. In Christ, you have nothing
to prove, because in him you are deeply loved, fully known,
(04:59):
and eternally valued. And if you want to dig deeper
into these themes, we've created a new study just for you.
It's called Wisdom Over Wealth, and it explores what Scripture,
especially the book of Ecclesiastes, has to say about money, work,
and living for what really matters. This month, when you
give $35 or more to support the ministry, we'll send
(05:20):
it to you as our thanks. Just visit giphy.com. We'll
be right back.
S2 (05:35):
The opinions offered during this program represent the personal or
professional opinions of the participants, given for informational purposes only.
Any information provided is not intended to replace advice from
a financial, medical, legal or other professional who understands your
specific situation.
S1 (05:59):
Great to have you with us today on Faith and
finance live. I'm Rob West. Well, it's time to take
your calls and questions today. We'd love to tackle whatever
you're thinking about in your financial life. That number to
call today to get in on the conversation with lines
open is 800 525 7000. Again, that's 800 525 7000.
(06:19):
We'd love to consider whatever you're considering. Perhaps it's paying
off some debt. Maybe you're stuck in some high interest debt.
You just can't seem to shake it. Well, we can
give you some thoughts moving forward. Perhaps it's your credit score.
Maybe you want to try to get that up or
investing for the future. Maybe it's aligning your values to
your investments. You know, there's a growing movement of faith
(06:40):
based investing that is really exciting right now with some
world class products, not only in the mutual fund space,
but exchange traded funds as well, which makes these investments
more accessible than ever before. In fact, there's some really
new developments coming. I was on a part of a
meeting last week with a new startup around a robo
(07:03):
advisor for faith based investing. That's right. Robo advisors essentially
allow you to start with a very small amount. You
answer some questions. An algorithm essentially builds the portfolio for
you using often exchange traded funds. So you capture the
broad moves of the market over time. It's very low cost,
really efficient way, especially for new investors. But this solution
(07:26):
would basically do the same thing. Smartphone driven, beautiful website,
but only with faith based investments. So these these robo
advisor portfolios would consist of a mix of all of
the best asset managers in the faith based investing space.
You could get started with as little as $50 and
(07:46):
invest systematically. Well, that's just an example of the kind
of innovation that's happening in the space that I am
really excited about. So whatever you're thinking about in your
financial life today, our goal to help you be a
wise and faithful steward. So call right now with your
questions 800 525 7000. Before we head to the phones
(08:07):
in the news today, the soaring cost of college and
unclear degree pathways are pushing many students to skip or
drop out. According to a recent survey by Lotion, a
higher education technology provider. Here's a breakdown 59% of current
students have considered dropping out due to financial stress. That's
(08:29):
led to a significant drop in college enrollment. Only 62.8%
of 2024 high school grads enrolled in college. That's a
four point decline. Since 2019, 56% of non enrollees and 53%
of current students cited expense as the main deterrent. A
(08:51):
nearly 25% of respondents who had dropped out of college
say they won't return due to upfront costs and feel
they're too burdened by existing debt. With college debt these days,
it's a wonder that number isn't even higher. Students are
also looking for alternatives and are turning to vocational training
and certificates, but over half are still unaware of these options.
(09:14):
Here's what I would say. There are other options to
pay for college or a trade or vocational school other
than borrowing, so keep your borrowing as low as possible.
In fact, better yet, no borrowing would be my ideal
for you as you think about entering college. Get creative
scholarships and grants. You've got to be intentional and you've
(09:34):
got to be really thoughtful about it. But you can
earn scholarships and grants. Also working as an option on campus.
You know, it won't surprise you, but I manage the
Christian radio station at at my college the final year,
I was also an RA, a resident assistant and had
my room and board covered. My wife, well, she got
over $150,000 in scholarships. They were very intentional about it.
(09:58):
She applied probably for hundreds of scholarships. So there are
ways to pay for school. Don't just default automatically to those, uh,
those student loans, which I think in part has made college, uh,
unaffordable for so many, specifically because they've been able to
continue to raise the price of of the sticker price
(10:18):
of the tuition because they know that students are able
to basically borrow an unlimited amount, and that's allowed them
to far outpace, uh, regular inflation with regard to tuition inflation.
So some things to think about, especially as we get
prepared to, uh, send another crop of, uh, freshmen off
to begin their college experience. One of mine will be
(10:40):
included in that. My second oldest headed off to college
this fall and really excited for him. But hey, let's
turn our attention to your questions today. We'll be diving
into those in just a moment. The number to call
to get in on the conversation today is 800 525 7000.
Let's begin in chat. Chat about recently. Um is more
(11:05):
and more of our listeners are wanting to align their
values with their, uh, let's call it financial institutions. So
as you think about who you do business with, and
I was just talking about the opportunity for you to
align your faith with your investment decisions, uh, you know,
that can carry over into other aspects of your financial life.
(11:25):
It can go beyond that. But certainly in your financial life.
And what increasingly, some of our listeners are finding is that, uh,
they want to do that with their banking relationship, especially
with some of the bigger banks, perhaps giving money, part
of the profits they're earning from your account to things that, uh,
our listeners don't agree with or don't align with. And
(11:46):
one of those opportunities is to be able to use
a banking partner like Kcu consumer. Christian. Excuse me, Christian
Community Credit Union and what the team at Kcu has
done as of late is put a special incentive in
(12:06):
place that they're really excited about that has allowed specifically
Faith VI partners to earn a bonus when they open
a checking savings or visa cash back card. Kcu has
been providing Christian banking solutions to thousands of Christ followers
and ministries over the last 68 years. So they've been
at this a long time, and not only are they
(12:29):
there to serve believers, but a portion of every dollar
is given to Christian ministries. So if you'd like to
learn about this special offer, we would just encourage you
to head to faith banking. That's faith. And then when
you're there, be sure to enter the code faithfully, and
(12:49):
that will ensure that you get to take advantage of
this bonus again, faithfully. All right. Looks like John is ready,
but we're going to head to a break here in
just a second. We did have some technical issues, but
I think the team has been able to resolve those.
So John, if you stay on the line as soon
as we get back from this break, we will dive
into your question. I know Mary is holding as well
(13:12):
and we've got room for you. So if you'd like
to jump in on the conversation today, go ahead and
do that right now. When you call 800 525 7000.
You know here on Faith and Finance Live. Our goal
each day is that we would encourage you, equip you
to live as a wise and faithful steward, ultimately for
you to see God as your ultimate treasure. There is
(13:32):
nothing in this world that will satisfy you your longings
for connection and for fulfillment and your identity. All of
that is found in Christ money. Well, it's a tool
to accomplish God's purposes. So we want to help you
get in its proper place. This is faith in finance. Live.
I'm Rob West. A quick break and back with much
more after this. Stay with us.
S3 (14:03):
And great to have you with us today on faith
and finance live. I'm Rob West. Let's head right back
to the phones. Chatsworth, GA.
S1 (14:10):
That's Georgia, by the way. John, thanks for calling today.
Sorry we had some trouble getting you on. I think
we've got you there now. Go ahead. Sir.
S4 (14:17):
Yes, sir. I was going to. I'm 60 years old.
I'm disabled, and I'm wondering if money is so tight.
Is it worth my time and trouble investing a few
dollars a month in acorns?
S3 (14:32):
Hmm.
S1 (14:33):
Yeah.
S3 (14:33):
Uh, you know.
S1 (14:34):
I think it can be a great way. So, for
the benefit of our audience, it's essentially acorns is a
part of the fintech movement that is financial technology that's
largely app and web based. It's essentially a Micro-investing app.
That means small investments that add up over time. And
what they're best known for is they're what's called roundup,
(14:56):
where they round up your everyday purchases and invest spare change.
So essentially it's an automatic savings and investing approach. So
you spend you know, $1.72. And then they're going to
round it up to $2 and put $0.28 in your investment.
Or yeah, in your investment account. And the thing that
(15:17):
they're kind of driving at is you don't even really
feel it, but that over time these micro investments can
really add up. And I like the automatic nature of it.
I think especially when you're just getting started being automated
with your savings and your investments is always a good thing.
I like that it's a dollar cost averaging approach, meaning
you're investing, you know, no matter whether the market is
(15:39):
up or down, you're just consistently investing. That's a good strategy.
It's beginner friendly. Um, now it skews younger. Just because,
you know, the younger generations are more apt to use, uh,
apps and websites. But, um, it is, it's beginner friendly.
So there's a simple interface which makes it ideal for
new investors. Uh, they use ETFs, so it's plenty diversified,
(16:03):
which is a good thing. And then they try to
bring in some education along the way. Um, it can
be a little high on the price, especially for smaller
balances because you're going to pay, you know, maybe $5
a month, which, you know, if you only have $25 invested,
that's a lot of money percentage wise. But as you
build up the balance, you know that that fee becomes
(16:24):
pretty minimal. Um, you can't choose specific investments, but that's
not a bad thing as you're getting started and, um,
you know, I think as you become a larger investor
over time, there will be better options for you. So
that's a long answer to a short question if you're
just starting out. Yes, I like it. I think it
can add up over time. And the key is, you know,
(16:46):
you stay consistent, you smart, you start small and you'll
have something meaningful in due time. I would be looking
John along the way to see how can I do
even more. I mean, it's one thing to do rounding
up to the next dollar and investing a micro deposit.
It's another thing for you to go back to the
budget and say, what can I cut back so that
(17:06):
I can just automatically sweep, you know, $200 or $400
into my investments every month? You may not be able
to do that, but if you could, you know, obviously
that's going to be more meaningful over time. But at
the end of the day, I think it can be
a great way for you to get started. Does that
make sense?
S4 (17:22):
Thank you so much. Absolutely does.
S1 (17:25):
Alrighty. Thank you for your call today, John. We appreciate
you being on the program. Uh, 800 525 7000 to
Twin Lakes, Wisconsin. Hi, Mary. Go ahead.
S5 (17:36):
Hi. Um, I owe $15,000 to IRS due to capital
gain tax. I have $180,000 CD that's going to mature,
and I'm wondering if it's better to take that 100,
take 15 out of the 180, because the 180 was
(17:59):
going to be used to bring our, um, uh, our
mortgage down, or should I take the, um, or should
I take, uh, like a small loan from the IRS
and just pay off the $15,000 slower?
S1 (18:20):
Yeah. Well, you know, I want to get into some
of the details here, but I would just say right
up front, if you've got a $15,000 tax bill, that
should be your biggest priority because that the IRS is
the worst creditor, not mainly because of the financial implications,
because when you put the interest and the penalties together,
it can run you 30% a year. So that's even
(18:43):
more than a credit card. And so we want to
get that paid off. And I'd rather you do that
not by borrowing. Um, but if you've got the money
to do it, let's get it done. But let's talk
about this idea of you taking this CD money to
put into the house through a refi. What is your
house worth today based on everything you know.
S5 (19:05):
About 350.
S1 (19:07):
All right. What do you owe on it currently?
S5 (19:11):
Oh, we just bought in October, so we're still way
up there with what we owe.
S6 (19:16):
Okay. So what?
S5 (19:17):
Our mortgage is insanely high.
S6 (19:20):
Our mortgage is, like.
S5 (19:21):
26 right now. The rate is, um, I think, uh,
seven point, uh, 7.6, 7.7, I think.
S6 (19:37):
Okay.
S1 (19:38):
All right. And what were you saying your way up there?
What did you mean by that? You mean the balance
on the mortgage?
S5 (19:43):
Oh, yeah. The balance on the mortgage is huge. It's
over 300,000, but I don't I want to maybe reinvest
that money minus the 15,000. Um, so that I could
wait a little bit longer for the interest rates to
drop because I don't want to refinance now, but my
CD is coming to maturity now, so.
S6 (20:04):
I want to.
S5 (20:04):
Refinance in in time.
S1 (20:07):
Yeah. No, I think that's right. You really want to
save at least a point and a half, maybe two points.
So that means you'd want a rate of at least 6%
or less, preferably five and a half, because you've got,
you know, perhaps as much as 5% in just fees
and expenses and closing costs on that refinance, so on
(20:28):
a $300,000 loan. And I realize it might be less
than that if you put some of this 180 toward it, but,
you know, that's $15,000 in fees right up front. And
so you've got to be able to save a point
and a half to two points so that that savings
from the interest, as long as you're going to stay
there at least 5 to 7 years, you're going to
be paid back in the form of lower interest, um,
(20:51):
you know, by waiting. And then you'll enjoy that lower payment,
that lower interest rate for the rest of the mortgage.
So what I would say is you're absolutely right, now
is not the time to refinance until you can get
at least 6% or lower, preferably five and a half.
But I would when this CD comes due, go ahead
and take care of that IRS debt. And then depending
(21:12):
on your time horizon for that money, either roll it
over into another CD or keep it in high yield savings. Um,
but I would get that IRS debt paid and I'd
wait on refinancing. Thanks for your call, Mary. We'll be
right back on Faith and Finance Live. Hey, thanks for
(21:34):
being with us on Faith in finance. Live here on
Moody Radio. Let's head right back to the phones. By
the way, I do have a few lines open if
you have a question today. Something going on in your
financial life, call right now 805 257. And we welcome
Mark to the broadcast. Go ahead sir.
S7 (21:52):
Hi, Rob. I just wanted to find out from you
where would you place, uh, tax free municipal bonds in
a portfolio?
S1 (22:01):
Yeah, it's a good question, mark. I mean, basically, these
can be a smart fit for conservative portfolios or for
that conservative portion of the portfolio or specifically for the
income generating part of your portfolio, especially if you're in
a higher tax bracket because they offer steady income that's
usually exempt from federal and even sometimes state taxes. Uh,
(22:25):
as you probably know, they don't grow like stocks, but
they can help preserve the wealth and reduce your overall
tax bill. So this is a good option for retirees
or those needing lower risk, tax efficient income. So I
would say, you know, that's really kind of how you
want to think about it in that income generating or
the more conservative kind of portion of that portfolio. So,
(22:49):
you know, if we were, you know, if you're 70
years old, uh, you know, we might say, okay, we'd
want 40% somewhere between 30 and 40% to stay in,
in stocks. And then we'd want, uh, you know, 60%, um,
to be in, uh, bonds, uh, or maybe as much as,
(23:09):
as 70%, depending on how conservative you want to be.
And then for that bond portion, maybe you put somewhere
between 25 and 50% in munis, especially if you're in
a high tax bracket. Does that make sense?
S7 (23:23):
Yes it does. Thank you very much. I'm going to
give that some consideration. Thank you.
S1 (23:28):
All right Mark, thanks for your call today. Uh, Chicago
is where Lorraine is located. Hi, Lorraine. Go ahead.
S8 (23:33):
Uh, yes, I would like to ask the question about annuities. Um,
I was thinking of investing in annuity, um, 19,000 into
a fixed annuity. And it supposed to be an income
for life.
S1 (23:46):
Okay, yeah. So you're wondering about, uh, with fixed annuities, essentially, uh,
this is a type of investment that's going to give
you a guaranteed. Um, they are complex, though, in the
sense that, you know, they're not all created equal. They've
got a lot of fees and expenses. And, you know, they, um,
(24:06):
you are going to lose access to the money, at
least for a period of time. Um, are you looking
to just continue to grow this or are you wanting
to convert it to an income stream right now?
S8 (24:18):
No, I'm looking to grow it. But where it's at now,
it's not growing any interest. This is a 401 K
from an old job, so it's not growing anything. So
I want to move it.
S1 (24:29):
Yeah. Yeah. So you know the, the other option, which
would be more in line with where I would typically go,
is just to roll that old 401 into an investment account.
Well back up. Do you have an existing 401 with
a new employer or are you retired? What's your situation?
S8 (24:49):
No, I'm not retired and I don't plan on investing
in the company that I'm in because I'm planning on
getting back into the school system where my pension is
still sitting there.
S1 (25:00):
Ah. Got it. Okay. And what do you have in
this 401 K from the previous employer?
S8 (25:05):
Uh, 19,000.
S1 (25:07):
Okay. Got it. Yeah. And do you have an IRA
Roth or traditional?
S8 (25:15):
Um, I do have a no, I don't, because I
have a fidelity. Uh, I mean, Merrill Edge, something like that.
And it's not. It's doing pretty decent, but I don't.
S6 (25:29):
Know.
S1 (25:30):
What type of account is that. Is that an IRA.
S8 (25:34):
Is this IRA? Yes, that's what it says.
S1 (25:37):
All right. And what about moving? Just rolling this into
that IRA and investing it in the same things rather
than the fixed annuity? What is it that's drawing you
to the fixed annuity?
S8 (25:49):
Um, I'm a little confused because they had said, you know,
income for life, but you won't start collecting that income
for life until age 74. So that's why I don't
think I don't I'm not going to do that.
S1 (26:04):
Yeah. Okay. Well, essentially an annuity is an insurance contract
where you give them a lump sum of money and
then in return, they promise to pay you a fixed amount,
usually monthly, for a set period of time. Now you
don't have to annuitize right away. You can just earn
whatever rate they're providing until you're ready to annuitize. And
(26:26):
then essentially it becomes a personal pension. So just kind
of like your teachers pension, this would be a personal
pension where you're turning over a lump sum of money
that that again grows at a guaranteed interest rate. And
then you don't lose money when the market drops, but
you also won't see big gains. And then you could
convert that into an income stream. Now, it wouldn't be
(26:47):
very much with 19,000 in terms of an income stream,
but it does give you that guaranteed increase. The downside
is there's limited growth. I mean, it's going to be
pretty modest in terms of what amount they're guaranteeing per
year the the interest rate. And there's less less flexibility
because you don't have access to the money. And there's
typically high fees and surrender charges. So the other option
(27:09):
would be you roll that 401 K into your IRA
that you said is already doing well. It gives you
more investment choices. Maybe you just align that new money
from the 401 K into the same investment you've got,
which gives you the potential for higher returns. And then
you can control how conservative or aggressive you want to
(27:29):
be in whatever investments you pick, but you don't have
the money locked up like you will in the fixed annuity.
So I'm just not sure. You know, unless you're just
looking for ultimate safety and you're willing to give up
the upside of investing in the IRA and getting a return,
more like probably what you're already receiving in that IRA.
(27:51):
Unless that's your ultimate goal. I would probably say the
IRA is better because you still have access to the money.
You have much more in the way of investment choices.
You have the ability for higher returns, and you could
just grow it, you know, for for a supplement in
retirement down the road.
S9 (28:07):
All right.
S1 (28:08):
Is that helpful? Do you have any confusion around any
of that though?
S8 (28:12):
No. You you answered the question.
S6 (28:15):
Thank you.
S8 (28:15):
Very much.
S6 (28:16):
For taking. You're welcome.
S1 (28:17):
Absolutely, Lorraine. And call back any time if we can
help you further. Uh, let's go to South Florida. Hi, Paul.
Go ahead.
S10 (28:24):
Yes. Hi. I have a can you hear me? Okay.
S1 (28:27):
Oh, yeah. Sure can.
S10 (28:28):
Oh, yeah. Yeah. Okay. I have a interest rate right
now of 6.25% on $98,000 on my loan for my home.
I have $47,000 in investments that I want to liquidate.
And I want to throw on my mortgage. Is that
a good idea? I found out that I'm only getting
(28:49):
about 3% from the last year on that 47,000, and
I want to reduce my debt on my house.
S1 (28:58):
Yeah. Yeah. What type of account is that? That the
investments the 47,000 are in? Is that just a taxable
account or is it some sort of a retirement account?
S10 (29:08):
Has has a Roth in it. It has cash in
it and it has stocks in it.
S1 (29:12):
Okay. Well it wouldn't have a Roth in it. So
the question is first of all, is that 47 in
1 account or is it multiple accounts.
S10 (29:21):
It's multiple accounts.
S1 (29:22):
Okay. So break that down for me. So you have
a Roth. How much is in that?
S10 (29:28):
Uh, there's only about six, 6 or 8000. I think
there's $6,000 in that.
S1 (29:34):
Okay.
S10 (29:34):
And then a bunch of money in the stocks.
S1 (29:39):
And what? What is that account? What is the title
on that stock portion? Is that just in your name,
like a taxable brokerage account?
S10 (29:47):
Yes it is.
S1 (29:49):
Okay. And are there some gains in there or losses
or a mix of the two.
S10 (29:53):
There are not.
S1 (29:54):
Much.
S10 (29:54):
Uh, there's only $1,700 in gains. Okay. I just got, like,
major stocks, that's all.
S1 (30:00):
Got it, got it. Well, listen, I mean, if it's
not been doing well and your conviction is to pay off, uh,
you know, the house or pay it down as quick
as you can, then I'd say go for it and
don't look back. Uh, apart from that, we could consider
some other options. I've got to hit this break. Let's
talk a bit more off the air. We'll be right back.
Stay with us. This is faith in finance. Live. I'm
(30:25):
Rob West here in our final segment today. We've got
room for maybe a 1 to 2 more phone calls.
If you have a question, something going on in your
financial life, we'd love to hear from you. The number
to call today to get in on the conversation is
800 525. That's 805, two five 7000. I'm going to
give you those last four. 800 525 7000 to Saint Charles, Missouri. Hi, Andrew.
(30:48):
Go ahead sir.
S11 (30:49):
Hi, Rob. Thank you for your show. It's very helpful
information for many of us. So thank you.
S1 (30:55):
Thank you very much.
S11 (30:56):
I created an LLC with a rental property. I'm the
sole member manager. It was my understanding that the tax
filing could be a pass through as a disregarded entity.
And so I could just add it to my 1040
tax filing due every April 15th. So tax preparer is
stating that I'm going to owe a quarterly tax and
(31:18):
estimate tax. And I was hoping not to get into that. Um,
is it mandatory that I file that quarterly estimate tax.
S1 (31:27):
Yeah. So here's my understanding on that. I'm not a CPA,
but I've got a working knowledge of all this. If
you're a sole member LLC, the IRS treats you as
a sole proprietor for tax purposes, which means you are correct.
You can file your income and expenses on schedule C
with your 1040 each year. If you owe more than
$1,000 in taxes for the year, then the IRS does
(31:49):
expect you to make quarterly estimated payments. So yes, you
file the 1040 annually, but quarterly payments are still required
to avoid penalties. Now, it's easier than ever to just
jump on their website at irs.gov. You've got an account,
you know, do your ACH transfer and you're done. But
if you owe more than a thousand in taxes, they
(32:10):
are going to ding you if you don't get that
quarterly payment in.
S11 (32:14):
Okay. Well that's very good to know. So but that
answers my question. I appreciate your time.
S1 (32:22):
Well you're welcome sir. Thanks for your kind remarks about
the program. Call anytime. Uh, let's go to Alabama. Hi, Mike.
Go ahead.
S12 (32:29):
Hey. I am 62.5. 63in December. I'm looking to possibly
retire early. Um, I a company I work for right now.
I'll be there 25 years. Uh, come August, management and
my values are getting further and further behind. So that
is a emotional component to it. Since I have never
(32:52):
retired before, uh, I am looking at strictly at the
money and the insurance right now. And if I retire
in January, I'll be taking home 1835. Uh, Social Security,
I'm doing 2200, give or take, if we're on overtime
or not now. So that's a $500 difference. I can
make that up. I'm also self-employed. I'm speaking with a
(33:15):
financial planner tomorrow to run a bunch of numbers, to
see where we're at and what I can do. My
wife's working. Uh, she'll be the insurance provider. She's still working.
She's 65. So what I'm wondering is, uh, absent of
the emotional component of this. What am I missing? I'm sure.
I'm sure I'm missing something. Uh, something to look at. Because,
(33:38):
like I said, I've never retired before.
S1 (33:40):
Yeah. Um, well, here's the reality. I mean, you need
to consider is that, uh, taking, uh, Social Security early, uh,
your benefits are going to be reduced by about 8%
for every year you take them early. So are you
factoring that in when you look at your primary insurance amount? Uh,
(34:00):
at my ssa.gov.
S12 (34:03):
Yes. I actually talked with a representative, uh, at one
of our Social Security offices, uh, in, in the area. And, uh,
that's the number she gave because I was telling her
I was looking at 2000, uh, at 20, 27in January,
it'd be 1960, and June of 2027 would it'll be
2028 absent any cola. So.
S1 (34:26):
Yeah. Got it. Okay. Yeah. So I mean, as long
as you understand that. But that's permanent. So you know,
every year you could wait. And I realize it's not
just financial because you said your values are misaligned. You
may feel like, you know, I just need from a
conviction standpoint, I need to move out from under this company.
And I would say if that's true, then then you
do that. Um, and then the question is, is there
(34:48):
another way to solve for this income? You know, could
you somehow delay this and maybe move to another, more
full time job? Uh, is there a way to ramp
up what you're doing in your, your small business? Um,
but if not, and you really feel convicted that this
is the way to go, then you just need to
understand you are locking in that permanent reduction, and you've
(35:09):
also got the income limit of 22,320 $22,320 for 2025.
So that's the maximum you can earn from work, not
investments or pension, Engine, but work before triggering a penalty,
which is a dollar withheld for every $2 you earn
over that $22,000 limit. Now, eventually, once you reach full
(35:31):
retirement age, they're going to give that money back to
you incrementally by adding it to your monthly benefit until
you're caught up. Um, but you it will, you know,
reduce what you're getting in Social Security in the meantime.
But you may not be planning to earn that much,
so that may not be a factor.
S12 (35:50):
Well, I can, uh, what the lady told me was
that that, uh, that earning limit is since I'm self employed,
is is after expenses. So it's not gross. It's net
after expenses. So, um, you know, I could I could
ramp up the business and cover that. Uh, but what
I was looking for is, you know, from you and
(36:11):
you've explained it extremely well, like you always do the, uh,
the ins and outs of, you know, doing this, uh,
absent of the absent of the emotional, you know, component
of it. But yeah, I am done. Done. You understand?
S1 (36:27):
I sure do. Yeah. Yeah. So I think the only
question would just be kind of run these scenarios out
with this financial advisor. Um, where you say, okay, if
if we're going to count on, you know, basically a
little less than 1900 a month, uh, for the rest
of my life with the cost of living adjustments, um,
(36:47):
and my small business, what does that look like? And
and what other assets do I have? How long is
your wife going to work and begin to run some
of those cash flow projections out through, you know, age
90 or 95 and just kind of understand the implications
of all of that, uh, before you make that call.
But it sounds like you, you feel set that you
need to make the change, I get that. So the
(37:08):
question is, just how do we solve for that income?
Is it a combination of your business plus Social security early?
Find a way to delay Social security. Um, and let
that check continue to build, which will appreciate when we
get to that. Uh, you know that higher check. But
you may not be wanting to work as hard as
it would require for you to fully replace the income
(37:31):
that you've been receiving from your current job. And I
get that. So you just need to factor that into
the planning. But I think you're thinking through this. Well.
S12 (37:40):
Okay. Sounds good. I've got 165,000in a 401 K also,
and I'm I'm not planning on even touching that at all.
If I can do the Social Security with my personal
business and get up to the $22,400 a month mark,
because that's where I'm at now with virtually, you know,
we're virtually debt free, with the exception of our two automobiles,
(38:01):
which will be ones December and ones the next December.
And their interest is dirt cheap.
S6 (38:07):
So yeah.
S12 (38:08):
Excellent. And then after that will be after that will
be free.
S1 (38:11):
So okay. Great. Yeah. Now SSA is going to look
at your net business income after expenses. So you're good
on that. Um, so yeah, I like it. And I'm
glad you're meeting with an advisor to kind of review
all of this in detail. So, Mike, call anytime. Thanks
for being on the program today. Uh, let's go to Chicago. Hi, Nancy.
Go ahead.
S13 (38:29):
Hi, Rob. Thanks for taking my call. Sure. Um, so
I am 40 years old, and I have three 401
K accounts from previous employers just kind of sitting there. And, um,
I've been talking to some financial advisors. Um, a couple
of them are saying that I can now combine them
into one account and my return would be like 8
(38:50):
to 10%. But another financial advisor, um, is telling me
that I can, um, he can invest in, like, a
hedge fund. And I would be, um, getting between 15
to 17% return.
S6 (39:04):
Okay.
S1 (39:05):
Yeah. The question, uh, is always, uh, with what amount
of risk? Uh, so, you know, is there something that could,
you know, and has generated 15 to 17%? 14%. Uh, yes,
but hedge funds are high risk. Um, and so, you know,
the that promise should raise a red flag, especially if
(39:27):
they're offering any kind of guarantee or expectation that that
should automatically be earned. Uh, anytime an advisor is making
bold claims like that, I would get a second opinion,
especially with your retirement, uh, money. I'd want to know
what the fund is, what it invests in, what the
risks are. And I'd make sure that this advisor is
(39:47):
a fiduciary who's legally required to ask in your best interest.
But bottom line is, um, promised high returns beyond the norm.
And I would say that's, you know, anything above just
historical averages of 7 to 9%. Um, should be a
red flag number one and would typically mean, uh, that,
(40:10):
you know, you have a high risk situation. And I'm
just not sure that's the kind of situation you want
to be in with your, you know, lifetime of savings
from retirement.
S13 (40:20):
Yeah. Okay. Thank you. I just wanted to get your input.
S1 (40:24):
Absolutely. Nancy, we appreciate your call. Thanks for being on
the program today. Well, I'll tell you, uh, great opportunity
to be with you today. Some wonderful questions. We covered
a lot of ground today. And listen, our heart here
at Faith and finance is along with the entire team
that makes this possible each day, which, by the way,
today was Amy and Anthony and Omar and Jim and
everybody here at Faith. By making this possible, we want
(40:46):
to just be an encouragement to you, help you to
be a wise and faithful steward of God's money. We
believe you've been given a high calling as a money
manager of the King of Kings, and our goal is
that you can glorify God and use money as a
tool to accomplish his purposes, to enjoy it along the way,
but to honor the Lord in all we do. And
it's such a privilege to be able to, uh, take
(41:08):
this journey with you each afternoon, and we're grateful that
you invite us into your homes and your cars and
your place of work and into your story as you
call and share your questions each day. Let me also
just finish by inviting you to be a part of
our team, because as a listener supported ministry, this doesn't
happen without your generous support. The way for you to
(41:28):
invest in this work is by becoming a faithful partner.
We're actually looking for 25 more partners to reach our
goal by the end of our fiscal year. That's June
the 30th. So just five days from now, just go to.
Partners support us at $35 a month or more, and
we send to you as a thank you for issues
of Faithful Steward, our beautiful rich magazine full of great articles,
(41:53):
plus each new study and devotional two per year pro
access to the Faith by app and more including ministry updates.
We're looking for 25 more of you. Would you consider
getting on board today? We'd certainly be grateful. Go to
faithful Faith and finance a partnership between Moody Radio and Faith,
and we'll see you tomorrow. Bye bye.
Then I saw that all toil and all skill and
work come from a man's envy of his neighbor. This
also is vanity and a striving after wind. Ecclesiastes four four. Hi,
I'm Rob West. Ecclesiastes shows us how even good work
can go wrong when driven by envy. What starts as
diligence can quickly become a pursuit of status. Today we'll
(00:33):
look at how chasing approval leaves us empty and how
God invites us into something much greater. Then it's on
to your calls at 855 7000. This is faith and finance.
Live biblical wisdom for your financial journey. The Bible says
Ecclesiastes targets all the ways we try to build meaning
(00:56):
and purpose in life apart from God. It gives voice
to the preacher, who carefully exposes the emptiness of paths
like pleasure, wealth, and status. In recent weeks, we've looked
at the idols of pleasure and accumulation. Today we turn
to the idol of status. This one can be harder
to spot. The line between excellence and envy is thin.
(01:18):
Ecclesiastes four four says, then I saw that all toil
and all skill and work come from a man's envy
of his neighbor. That's a striking thought. Our motivation may
not be love of the work or calling. It's often
the quiet urge to compete, to keep up, to be seen.
That's what status does. It whispers you're not enough unless
(01:40):
others notice you. And without realizing it, our careers, spending,
and even our generosity can become ways of proving our worth.
Keeping up with the Joneses isn't just a saying, it's
a way of life for many. We compare houses, vacations, schools,
and the pressure to match others can lead to debt, burnout,
and dissatisfaction with what God has already provided in our
(02:04):
digital age. The pressures amplified. Social media showcases only the
highlight reel, not the debt, exhaustion or stress that often
accompany it. But we still scroll and wonder why not me?
Ecclesiastes answers that longing with honesty. In verse eight, the
preacher describes someone who works tirelessly, builds wealth, but has
(02:25):
no one to share it with. There is no end
to all his toil, and his eyes are never satisfied
with riches. It's a picture of success without joy, activity
without peace. A full schedule, but an empty soul. But
then he offers a better way. In verse six, we
read better is a handful of quietness than two hands
(02:46):
full of toil and a striving after wind. In other words,
it's better to have less with peace than more with anxiety.
That's not laziness, it's wisdom. A life lived with margin
grounded in God's provision. This is the invitation Ecclesiastes extends
not to give up on excellence, but to anchor it
in the right place. When our work flows from a
(03:08):
love for God and a desire to serve others, it
becomes a blessing, not a burden. It becomes worship. We
don't need applause. We need peace. And in Christ we
already have it. His approval is not based on performance.
It's based on grace that frees us from striving to
be seen and lets us rest in being known. Maybe
that's where you are tired, overextended, wondering what you're chasing.
(03:32):
Ecclesiastes invites you to step off the treadmill of comparison.
You don't have to strive for identity. You already have it.
In Jesus, we see examples of this all the time.
A professional sacrifices evenings and weekends to climb the corporate ladder,
only to feel lonely at the top. A family maxes
out their budget to project an image while tension quietly
(03:54):
builds at home. These aren't just stories, they're warnings. They
also echo Ecclesiastes caution about what we're trading in our
pursuit of more. Sometimes this isn't just about envy. It's
about fear. Fear of being unseen, of being left behind.
So we push harder, hoping success will quiet that fear.
But only God can give the peace we're looking for.
(04:17):
Contentment doesn't mean quitting. It means redefining success. It means
anchoring your worth in something that lasts. When you stop
striving in vain, your ambition gets reoriented. Your work becomes
more joyful. Your giving becomes more meaningful. So today, ask yourself,
who am I trying to impress? What am I really chasing?
(04:39):
If your hands are full but your heart is empty,
Ecclesiastes invites you to trade performance for peace. True success
isn't about being noticed or admired. It's about being faithful
with what God has given you. It's not something you
have to earn or achieve. In Christ, you have nothing
to prove, because in him you are deeply loved, fully known,
(04:59):
and eternally valued. And if you want to dig deeper
into these themes, we've created a new study just for you.
It's called Wisdom Over Wealth, and it explores what Scripture,
especially the book of Ecclesiastes, has to say about money, work,
and living for what really matters. This month, when you
give $35 or more to support the ministry, we'll send
(05:20):
it to you as our thanks. Just visit giphy.com. We'll
be right back.
S2 (05:35):
The opinions offered during this program represent the personal or
professional opinions of the participants, given for informational purposes only.
Any information provided is not intended to replace advice from
a financial, medical, legal or other professional who understands your
specific situation.
S1 (05:59):
Great to have you with us today on Faith and
finance live. I'm Rob West. Well, it's time to take
your calls and questions today. We'd love to tackle whatever
you're thinking about in your financial life. That number to
call today to get in on the conversation with lines
open is 800 525 7000. Again, that's 800 525 7000.
(06:19):
We'd love to consider whatever you're considering. Perhaps it's paying
off some debt. Maybe you're stuck in some high interest debt.
You just can't seem to shake it. Well, we can
give you some thoughts moving forward. Perhaps it's your credit score.
Maybe you want to try to get that up or
investing for the future. Maybe it's aligning your values to
your investments. You know, there's a growing movement of faith
(06:40):
based investing that is really exciting right now with some
world class products, not only in the mutual fund space,
but exchange traded funds as well, which makes these investments
more accessible than ever before. In fact, there's some really
new developments coming. I was on a part of a
meeting last week with a new startup around a robo
(07:03):
advisor for faith based investing. That's right. Robo advisors essentially
allow you to start with a very small amount. You
answer some questions. An algorithm essentially builds the portfolio for
you using often exchange traded funds. So you capture the
broad moves of the market over time. It's very low cost,
really efficient way, especially for new investors. But this solution
(07:26):
would basically do the same thing. Smartphone driven, beautiful website,
but only with faith based investments. So these these robo
advisor portfolios would consist of a mix of all of
the best asset managers in the faith based investing space.
You could get started with as little as $50 and
(07:46):
invest systematically. Well, that's just an example of the kind
of innovation that's happening in the space that I am
really excited about. So whatever you're thinking about in your
financial life today, our goal to help you be a
wise and faithful steward. So call right now with your
questions 800 525 7000. Before we head to the phones
(08:07):
in the news today, the soaring cost of college and
unclear degree pathways are pushing many students to skip or
drop out. According to a recent survey by Lotion, a
higher education technology provider. Here's a breakdown 59% of current
students have considered dropping out due to financial stress. That's
(08:29):
led to a significant drop in college enrollment. Only 62.8%
of 2024 high school grads enrolled in college. That's a
four point decline. Since 2019, 56% of non enrollees and 53%
of current students cited expense as the main deterrent. A
(08:51):
nearly 25% of respondents who had dropped out of college
say they won't return due to upfront costs and feel
they're too burdened by existing debt. With college debt these days,
it's a wonder that number isn't even higher. Students are
also looking for alternatives and are turning to vocational training
and certificates, but over half are still unaware of these options.
(09:14):
Here's what I would say. There are other options to
pay for college or a trade or vocational school other
than borrowing, so keep your borrowing as low as possible.
In fact, better yet, no borrowing would be my ideal
for you as you think about entering college. Get creative
scholarships and grants. You've got to be intentional and you've
(09:34):
got to be really thoughtful about it. But you can
earn scholarships and grants. Also working as an option on campus.
You know, it won't surprise you, but I manage the
Christian radio station at at my college the final year,
I was also an RA, a resident assistant and had
my room and board covered. My wife, well, she got
over $150,000 in scholarships. They were very intentional about it.
(09:58):
She applied probably for hundreds of scholarships. So there are
ways to pay for school. Don't just default automatically to those, uh,
those student loans, which I think in part has made college, uh,
unaffordable for so many, specifically because they've been able to
continue to raise the price of of the sticker price
(10:18):
of the tuition because they know that students are able
to basically borrow an unlimited amount, and that's allowed them
to far outpace, uh, regular inflation with regard to tuition inflation.
So some things to think about, especially as we get
prepared to, uh, send another crop of, uh, freshmen off
to begin their college experience. One of mine will be
(10:40):
included in that. My second oldest headed off to college
this fall and really excited for him. But hey, let's
turn our attention to your questions today. We'll be diving
into those in just a moment. The number to call
to get in on the conversation today is 800 525 7000.
Let's begin in chat. Chat about recently. Um is more
(11:05):
and more of our listeners are wanting to align their
values with their, uh, let's call it financial institutions. So
as you think about who you do business with, and
I was just talking about the opportunity for you to
align your faith with your investment decisions, uh, you know,
that can carry over into other aspects of your financial life.
(11:25):
It can go beyond that. But certainly in your financial life.
And what increasingly, some of our listeners are finding is that, uh,
they want to do that with their banking relationship, especially
with some of the bigger banks, perhaps giving money, part
of the profits they're earning from your account to things that, uh,
our listeners don't agree with or don't align with. And
(11:46):
one of those opportunities is to be able to use
a banking partner like Kcu consumer. Christian. Excuse me, Christian
Community Credit Union and what the team at Kcu has
done as of late is put a special incentive in
(12:06):
place that they're really excited about that has allowed specifically
Faith VI partners to earn a bonus when they open
a checking savings or visa cash back card. Kcu has
been providing Christian banking solutions to thousands of Christ followers
and ministries over the last 68 years. So they've been
at this a long time, and not only are they
(12:29):
there to serve believers, but a portion of every dollar
is given to Christian ministries. So if you'd like to
learn about this special offer, we would just encourage you
to head to faith banking. That's faith. And then when
you're there, be sure to enter the code faithfully, and
(12:49):
that will ensure that you get to take advantage of
this bonus again, faithfully. All right. Looks like John is ready,
but we're going to head to a break here in
just a second. We did have some technical issues, but
I think the team has been able to resolve those.
So John, if you stay on the line as soon
as we get back from this break, we will dive
into your question. I know Mary is holding as well
(13:12):
and we've got room for you. So if you'd like
to jump in on the conversation today, go ahead and
do that right now. When you call 800 525 7000.
You know here on Faith and Finance Live. Our goal
each day is that we would encourage you, equip you
to live as a wise and faithful steward, ultimately for
you to see God as your ultimate treasure. There is
(13:32):
nothing in this world that will satisfy you your longings
for connection and for fulfillment and your identity. All of
that is found in Christ money. Well, it's a tool
to accomplish God's purposes. So we want to help you
get in its proper place. This is faith in finance. Live.
I'm Rob West. A quick break and back with much
more after this. Stay with us.
S3 (14:03):
And great to have you with us today on faith
and finance live. I'm Rob West. Let's head right back
to the phones. Chatsworth, GA.
S1 (14:10):
That's Georgia, by the way. John, thanks for calling today.
Sorry we had some trouble getting you on. I think
we've got you there now. Go ahead. Sir.
S4 (14:17):
Yes, sir. I was going to. I'm 60 years old.
I'm disabled, and I'm wondering if money is so tight.
Is it worth my time and trouble investing a few
dollars a month in acorns?
S3 (14:32):
Hmm.
S1 (14:33):
Yeah.
S3 (14:33):
Uh, you know.
S1 (14:34):
I think it can be a great way. So, for
the benefit of our audience, it's essentially acorns is a
part of the fintech movement that is financial technology that's
largely app and web based. It's essentially a Micro-investing app.
That means small investments that add up over time. And
what they're best known for is they're what's called roundup,
(14:56):
where they round up your everyday purchases and invest spare change.
So essentially it's an automatic savings and investing approach. So
you spend you know, $1.72. And then they're going to
round it up to $2 and put $0.28 in your investment.
Or yeah, in your investment account. And the thing that
(15:17):
they're kind of driving at is you don't even really
feel it, but that over time these micro investments can
really add up. And I like the automatic nature of it.
I think especially when you're just getting started being automated
with your savings and your investments is always a good thing.
I like that it's a dollar cost averaging approach, meaning
you're investing, you know, no matter whether the market is
(15:39):
up or down, you're just consistently investing. That's a good strategy.
It's beginner friendly. Um, now it skews younger. Just because,
you know, the younger generations are more apt to use, uh,
apps and websites. But, um, it is, it's beginner friendly.
So there's a simple interface which makes it ideal for
new investors. Uh, they use ETFs, so it's plenty diversified,
(16:03):
which is a good thing. And then they try to
bring in some education along the way. Um, it can
be a little high on the price, especially for smaller
balances because you're going to pay, you know, maybe $5
a month, which, you know, if you only have $25 invested,
that's a lot of money percentage wise. But as you
build up the balance, you know that that fee becomes
(16:24):
pretty minimal. Um, you can't choose specific investments, but that's
not a bad thing as you're getting started and, um,
you know, I think as you become a larger investor
over time, there will be better options for you. So
that's a long answer to a short question if you're
just starting out. Yes, I like it. I think it
can add up over time. And the key is, you know,
(16:46):
you stay consistent, you smart, you start small and you'll
have something meaningful in due time. I would be looking
John along the way to see how can I do
even more. I mean, it's one thing to do rounding
up to the next dollar and investing a micro deposit.
It's another thing for you to go back to the
budget and say, what can I cut back so that
(17:06):
I can just automatically sweep, you know, $200 or $400
into my investments every month? You may not be able
to do that, but if you could, you know, obviously
that's going to be more meaningful over time. But at
the end of the day, I think it can be
a great way for you to get started. Does that
make sense?
S4 (17:22):
Thank you so much. Absolutely does.
S1 (17:25):
Alrighty. Thank you for your call today, John. We appreciate
you being on the program. Uh, 800 525 7000 to
Twin Lakes, Wisconsin. Hi, Mary. Go ahead.
S5 (17:36):
Hi. Um, I owe $15,000 to IRS due to capital
gain tax. I have $180,000 CD that's going to mature,
and I'm wondering if it's better to take that 100,
take 15 out of the 180, because the 180 was
(17:59):
going to be used to bring our, um, uh, our
mortgage down, or should I take the, um, or should
I take, uh, like a small loan from the IRS
and just pay off the $15,000 slower?
S1 (18:20):
Yeah. Well, you know, I want to get into some
of the details here, but I would just say right
up front, if you've got a $15,000 tax bill, that
should be your biggest priority because that the IRS is
the worst creditor, not mainly because of the financial implications,
because when you put the interest and the penalties together,
it can run you 30% a year. So that's even
(18:43):
more than a credit card. And so we want to
get that paid off. And I'd rather you do that
not by borrowing. Um, but if you've got the money
to do it, let's get it done. But let's talk
about this idea of you taking this CD money to
put into the house through a refi. What is your
house worth today based on everything you know.
S5 (19:05):
About 350.
S1 (19:07):
All right. What do you owe on it currently?
S5 (19:11):
Oh, we just bought in October, so we're still way
up there with what we owe.
S6 (19:16):
Okay. So what?
S5 (19:17):
Our mortgage is insanely high.
S6 (19:20):
Our mortgage is, like.
S5 (19:21):
26 right now. The rate is, um, I think, uh,
seven point, uh, 7.6, 7.7, I think.
S6 (19:37):
Okay.
S1 (19:38):
All right. And what were you saying your way up there?
What did you mean by that? You mean the balance
on the mortgage?
S5 (19:43):
Oh, yeah. The balance on the mortgage is huge. It's
over 300,000, but I don't I want to maybe reinvest
that money minus the 15,000. Um, so that I could
wait a little bit longer for the interest rates to
drop because I don't want to refinance now, but my
CD is coming to maturity now, so.
S6 (20:04):
I want to.
S5 (20:04):
Refinance in in time.
S1 (20:07):
Yeah. No, I think that's right. You really want to
save at least a point and a half, maybe two points.
So that means you'd want a rate of at least 6%
or less, preferably five and a half, because you've got,
you know, perhaps as much as 5% in just fees
and expenses and closing costs on that refinance, so on
(20:28):
a $300,000 loan. And I realize it might be less
than that if you put some of this 180 toward it, but,
you know, that's $15,000 in fees right up front. And
so you've got to be able to save a point
and a half to two points so that that savings
from the interest, as long as you're going to stay
there at least 5 to 7 years, you're going to
be paid back in the form of lower interest, um,
(20:51):
you know, by waiting. And then you'll enjoy that lower payment,
that lower interest rate for the rest of the mortgage.
So what I would say is you're absolutely right, now
is not the time to refinance until you can get
at least 6% or lower, preferably five and a half.
But I would when this CD comes due, go ahead
and take care of that IRS debt. And then depending
(21:12):
on your time horizon for that money, either roll it
over into another CD or keep it in high yield savings. Um,
but I would get that IRS debt paid and I'd
wait on refinancing. Thanks for your call, Mary. We'll be
right back on Faith and Finance Live. Hey, thanks for
(21:34):
being with us on Faith in finance. Live here on
Moody Radio. Let's head right back to the phones. By
the way, I do have a few lines open if
you have a question today. Something going on in your
financial life, call right now 805 257. And we welcome
Mark to the broadcast. Go ahead sir.
S7 (21:52):
Hi, Rob. I just wanted to find out from you
where would you place, uh, tax free municipal bonds in
a portfolio?
S1 (22:01):
Yeah, it's a good question, mark. I mean, basically, these
can be a smart fit for conservative portfolios or for
that conservative portion of the portfolio or specifically for the
income generating part of your portfolio, especially if you're in
a higher tax bracket because they offer steady income that's
usually exempt from federal and even sometimes state taxes. Uh,
(22:25):
as you probably know, they don't grow like stocks, but
they can help preserve the wealth and reduce your overall
tax bill. So this is a good option for retirees
or those needing lower risk, tax efficient income. So I
would say, you know, that's really kind of how you
want to think about it in that income generating or
the more conservative kind of portion of that portfolio. So,
(22:49):
you know, if we were, you know, if you're 70
years old, uh, you know, we might say, okay, we'd
want 40% somewhere between 30 and 40% to stay in,
in stocks. And then we'd want, uh, you know, 60%, um,
to be in, uh, bonds, uh, or maybe as much as,
(23:09):
as 70%, depending on how conservative you want to be.
And then for that bond portion, maybe you put somewhere
between 25 and 50% in munis, especially if you're in
a high tax bracket. Does that make sense?
S7 (23:23):
Yes it does. Thank you very much. I'm going to
give that some consideration. Thank you.
S1 (23:28):
All right Mark, thanks for your call today. Uh, Chicago
is where Lorraine is located. Hi, Lorraine. Go ahead.
S8 (23:33):
Uh, yes, I would like to ask the question about annuities. Um,
I was thinking of investing in annuity, um, 19,000 into
a fixed annuity. And it supposed to be an income
for life.
S1 (23:46):
Okay, yeah. So you're wondering about, uh, with fixed annuities, essentially, uh,
this is a type of investment that's going to give
you a guaranteed. Um, they are complex, though, in the
sense that, you know, they're not all created equal. They've
got a lot of fees and expenses. And, you know, they, um,
(24:06):
you are going to lose access to the money, at
least for a period of time. Um, are you looking
to just continue to grow this or are you wanting
to convert it to an income stream right now?
S8 (24:18):
No, I'm looking to grow it. But where it's at now,
it's not growing any interest. This is a 401 K
from an old job, so it's not growing anything. So
I want to move it.
S1 (24:29):
Yeah. Yeah. So you know the, the other option, which
would be more in line with where I would typically go,
is just to roll that old 401 into an investment account.
Well back up. Do you have an existing 401 with
a new employer or are you retired? What's your situation?
S8 (24:49):
No, I'm not retired and I don't plan on investing
in the company that I'm in because I'm planning on
getting back into the school system where my pension is
still sitting there.
S1 (25:00):
Ah. Got it. Okay. And what do you have in
this 401 K from the previous employer?
S8 (25:05):
Uh, 19,000.
S1 (25:07):
Okay. Got it. Yeah. And do you have an IRA
Roth or traditional?
S8 (25:15):
Um, I do have a no, I don't, because I
have a fidelity. Uh, I mean, Merrill Edge, something like that.
And it's not. It's doing pretty decent, but I don't.
S6 (25:29):
Know.
S1 (25:30):
What type of account is that. Is that an IRA.
S8 (25:34):
Is this IRA? Yes, that's what it says.
S1 (25:37):
All right. And what about moving? Just rolling this into
that IRA and investing it in the same things rather
than the fixed annuity? What is it that's drawing you
to the fixed annuity?
S8 (25:49):
Um, I'm a little confused because they had said, you know,
income for life, but you won't start collecting that income
for life until age 74. So that's why I don't
think I don't I'm not going to do that.
S1 (26:04):
Yeah. Okay. Well, essentially an annuity is an insurance contract
where you give them a lump sum of money and
then in return, they promise to pay you a fixed amount,
usually monthly, for a set period of time. Now you
don't have to annuitize right away. You can just earn
whatever rate they're providing until you're ready to annuitize. And
(26:26):
then essentially it becomes a personal pension. So just kind
of like your teachers pension, this would be a personal
pension where you're turning over a lump sum of money
that that again grows at a guaranteed interest rate. And
then you don't lose money when the market drops, but
you also won't see big gains. And then you could
convert that into an income stream. Now, it wouldn't be
(26:47):
very much with 19,000 in terms of an income stream,
but it does give you that guaranteed increase. The downside
is there's limited growth. I mean, it's going to be
pretty modest in terms of what amount they're guaranteeing per
year the the interest rate. And there's less less flexibility
because you don't have access to the money. And there's
typically high fees and surrender charges. So the other option
(27:09):
would be you roll that 401 K into your IRA
that you said is already doing well. It gives you
more investment choices. Maybe you just align that new money
from the 401 K into the same investment you've got,
which gives you the potential for higher returns. And then
you can control how conservative or aggressive you want to
(27:29):
be in whatever investments you pick, but you don't have
the money locked up like you will in the fixed annuity.
So I'm just not sure. You know, unless you're just
looking for ultimate safety and you're willing to give up
the upside of investing in the IRA and getting a return,
more like probably what you're already receiving in that IRA.
(27:51):
Unless that's your ultimate goal. I would probably say the
IRA is better because you still have access to the money.
You have much more in the way of investment choices.
You have the ability for higher returns, and you could
just grow it, you know, for for a supplement in
retirement down the road.
S9 (28:07):
All right.
S1 (28:08):
Is that helpful? Do you have any confusion around any
of that though?
S8 (28:12):
No. You you answered the question.
S6 (28:15):
Thank you.
S8 (28:15):
Very much.
S6 (28:16):
For taking. You're welcome.
S1 (28:17):
Absolutely, Lorraine. And call back any time if we can
help you further. Uh, let's go to South Florida. Hi, Paul.
Go ahead.
S10 (28:24):
Yes. Hi. I have a can you hear me? Okay.
S1 (28:27):
Oh, yeah. Sure can.
S10 (28:28):
Oh, yeah. Yeah. Okay. I have a interest rate right
now of 6.25% on $98,000 on my loan for my home.
I have $47,000 in investments that I want to liquidate.
And I want to throw on my mortgage. Is that
a good idea? I found out that I'm only getting
(28:49):
about 3% from the last year on that 47,000, and
I want to reduce my debt on my house.
S1 (28:58):
Yeah. Yeah. What type of account is that? That the
investments the 47,000 are in? Is that just a taxable
account or is it some sort of a retirement account?
S10 (29:08):
Has has a Roth in it. It has cash in
it and it has stocks in it.
S1 (29:12):
Okay. Well it wouldn't have a Roth in it. So
the question is first of all, is that 47 in
1 account or is it multiple accounts.
S10 (29:21):
It's multiple accounts.
S1 (29:22):
Okay. So break that down for me. So you have
a Roth. How much is in that?
S10 (29:28):
Uh, there's only about six, 6 or 8000. I think
there's $6,000 in that.
S1 (29:34):
Okay.
S10 (29:34):
And then a bunch of money in the stocks.
S1 (29:39):
And what? What is that account? What is the title
on that stock portion? Is that just in your name,
like a taxable brokerage account?
S10 (29:47):
Yes it is.
S1 (29:49):
Okay. And are there some gains in there or losses
or a mix of the two.
S10 (29:53):
There are not.
S1 (29:54):
Much.
S10 (29:54):
Uh, there's only $1,700 in gains. Okay. I just got, like,
major stocks, that's all.
S1 (30:00):
Got it, got it. Well, listen, I mean, if it's
not been doing well and your conviction is to pay off, uh,
you know, the house or pay it down as quick
as you can, then I'd say go for it and
don't look back. Uh, apart from that, we could consider
some other options. I've got to hit this break. Let's
talk a bit more off the air. We'll be right back.
Stay with us. This is faith in finance. Live. I'm
(30:25):
Rob West here in our final segment today. We've got
room for maybe a 1 to 2 more phone calls.
If you have a question, something going on in your
financial life, we'd love to hear from you. The number
to call today to get in on the conversation is
800 525. That's 805, two five 7000. I'm going to
give you those last four. 800 525 7000 to Saint Charles, Missouri. Hi, Andrew.
(30:48):
Go ahead sir.
S11 (30:49):
Hi, Rob. Thank you for your show. It's very helpful
information for many of us. So thank you.
S1 (30:55):
Thank you very much.
S11 (30:56):
I created an LLC with a rental property. I'm the
sole member manager. It was my understanding that the tax
filing could be a pass through as a disregarded entity.
And so I could just add it to my 1040
tax filing due every April 15th. So tax preparer is
stating that I'm going to owe a quarterly tax and
(31:18):
estimate tax. And I was hoping not to get into that. Um,
is it mandatory that I file that quarterly estimate tax.
S1 (31:27):
Yeah. So here's my understanding on that. I'm not a CPA,
but I've got a working knowledge of all this. If
you're a sole member LLC, the IRS treats you as
a sole proprietor for tax purposes, which means you are correct.
You can file your income and expenses on schedule C
with your 1040 each year. If you owe more than
$1,000 in taxes for the year, then the IRS does
(31:49):
expect you to make quarterly estimated payments. So yes, you
file the 1040 annually, but quarterly payments are still required
to avoid penalties. Now, it's easier than ever to just
jump on their website at irs.gov. You've got an account,
you know, do your ACH transfer and you're done. But
if you owe more than a thousand in taxes, they
(32:10):
are going to ding you if you don't get that
quarterly payment in.
S11 (32:14):
Okay. Well that's very good to know. So but that
answers my question. I appreciate your time.
S1 (32:22):
Well you're welcome sir. Thanks for your kind remarks about
the program. Call anytime. Uh, let's go to Alabama. Hi, Mike.
Go ahead.
S12 (32:29):
Hey. I am 62.5. 63in December. I'm looking to possibly
retire early. Um, I a company I work for right now.
I'll be there 25 years. Uh, come August, management and
my values are getting further and further behind. So that
is a emotional component to it. Since I have never
(32:52):
retired before, uh, I am looking at strictly at the
money and the insurance right now. And if I retire
in January, I'll be taking home 1835. Uh, Social Security,
I'm doing 2200, give or take, if we're on overtime
or not now. So that's a $500 difference. I can
make that up. I'm also self-employed. I'm speaking with a
(33:15):
financial planner tomorrow to run a bunch of numbers, to
see where we're at and what I can do. My
wife's working. Uh, she'll be the insurance provider. She's still working.
She's 65. So what I'm wondering is, uh, absent of
the emotional component of this. What am I missing? I'm sure.
I'm sure I'm missing something. Uh, something to look at. Because,
(33:38):
like I said, I've never retired before.
S1 (33:40):
Yeah. Um, well, here's the reality. I mean, you need
to consider is that, uh, taking, uh, Social Security early, uh,
your benefits are going to be reduced by about 8%
for every year you take them early. So are you
factoring that in when you look at your primary insurance amount? Uh,
(34:00):
at my ssa.gov.
S12 (34:03):
Yes. I actually talked with a representative, uh, at one
of our Social Security offices, uh, in, in the area. And, uh,
that's the number she gave because I was telling her
I was looking at 2000, uh, at 20, 27in January,
it'd be 1960, and June of 2027 would it'll be
2028 absent any cola. So.
S1 (34:26):
Yeah. Got it. Okay. Yeah. So I mean, as long
as you understand that. But that's permanent. So you know,
every year you could wait. And I realize it's not
just financial because you said your values are misaligned. You
may feel like, you know, I just need from a
conviction standpoint, I need to move out from under this company.
And I would say if that's true, then then you
do that. Um, and then the question is, is there
(34:48):
another way to solve for this income? You know, could
you somehow delay this and maybe move to another, more
full time job? Uh, is there a way to ramp
up what you're doing in your, your small business? Um,
but if not, and you really feel convicted that this
is the way to go, then you just need to
understand you are locking in that permanent reduction, and you've
(35:09):
also got the income limit of 22,320 $22,320 for 2025.
So that's the maximum you can earn from work, not
investments or pension, Engine, but work before triggering a penalty,
which is a dollar withheld for every $2 you earn
over that $22,000 limit. Now, eventually, once you reach full
(35:31):
retirement age, they're going to give that money back to
you incrementally by adding it to your monthly benefit until
you're caught up. Um, but you it will, you know,
reduce what you're getting in Social Security in the meantime.
But you may not be planning to earn that much,
so that may not be a factor.
S12 (35:50):
Well, I can, uh, what the lady told me was
that that, uh, that earning limit is since I'm self employed,
is is after expenses. So it's not gross. It's net
after expenses. So, um, you know, I could I could
ramp up the business and cover that. Uh, but what
I was looking for is, you know, from you and
(36:11):
you've explained it extremely well, like you always do the, uh,
the ins and outs of, you know, doing this, uh,
absent of the absent of the emotional, you know, component
of it. But yeah, I am done. Done. You understand?
S1 (36:27):
I sure do. Yeah. Yeah. So I think the only
question would just be kind of run these scenarios out
with this financial advisor. Um, where you say, okay, if
if we're going to count on, you know, basically a
little less than 1900 a month, uh, for the rest
of my life with the cost of living adjustments, um,
(36:47):
and my small business, what does that look like? And
and what other assets do I have? How long is
your wife going to work and begin to run some
of those cash flow projections out through, you know, age
90 or 95 and just kind of understand the implications
of all of that, uh, before you make that call.
But it sounds like you, you feel set that you
need to make the change, I get that. So the
(37:08):
question is, just how do we solve for that income?
Is it a combination of your business plus Social security early?
Find a way to delay Social security. Um, and let
that check continue to build, which will appreciate when we
get to that. Uh, you know that higher check. But
you may not be wanting to work as hard as
it would require for you to fully replace the income
(37:31):
that you've been receiving from your current job. And I
get that. So you just need to factor that into
the planning. But I think you're thinking through this. Well.
S12 (37:40):
Okay. Sounds good. I've got 165,000in a 401 K also,
and I'm I'm not planning on even touching that at all.
If I can do the Social Security with my personal
business and get up to the $22,400 a month mark,
because that's where I'm at now with virtually, you know,
we're virtually debt free, with the exception of our two automobiles,
(38:01):
which will be ones December and ones the next December.
And their interest is dirt cheap.
S6 (38:07):
So yeah.
S12 (38:08):
Excellent. And then after that will be after that will
be free.
S1 (38:11):
So okay. Great. Yeah. Now SSA is going to look
at your net business income after expenses. So you're good
on that. Um, so yeah, I like it. And I'm
glad you're meeting with an advisor to kind of review
all of this in detail. So, Mike, call anytime. Thanks
for being on the program today. Uh, let's go to Chicago. Hi, Nancy.
Go ahead.
S13 (38:29):
Hi, Rob. Thanks for taking my call. Sure. Um, so
I am 40 years old, and I have three 401
K accounts from previous employers just kind of sitting there. And, um,
I've been talking to some financial advisors. Um, a couple
of them are saying that I can now combine them
into one account and my return would be like 8
(38:50):
to 10%. But another financial advisor, um, is telling me
that I can, um, he can invest in, like, a
hedge fund. And I would be, um, getting between 15
to 17% return.
S6 (39:04):
Okay.
S1 (39:05):
Yeah. The question, uh, is always, uh, with what amount
of risk? Uh, so, you know, is there something that could,
you know, and has generated 15 to 17%? 14%. Uh, yes,
but hedge funds are high risk. Um, and so, you know,
the that promise should raise a red flag, especially if
(39:27):
they're offering any kind of guarantee or expectation that that
should automatically be earned. Uh, anytime an advisor is making
bold claims like that, I would get a second opinion,
especially with your retirement, uh, money. I'd want to know
what the fund is, what it invests in, what the
risks are. And I'd make sure that this advisor is
(39:47):
a fiduciary who's legally required to ask in your best interest.
But bottom line is, um, promised high returns beyond the norm.
And I would say that's, you know, anything above just
historical averages of 7 to 9%. Um, should be a
red flag number one and would typically mean, uh, that,
(40:10):
you know, you have a high risk situation. And I'm
just not sure that's the kind of situation you want
to be in with your, you know, lifetime of savings
from retirement.
S13 (40:20):
Yeah. Okay. Thank you. I just wanted to get your input.
S1 (40:24):
Absolutely. Nancy, we appreciate your call. Thanks for being on
the program today. Well, I'll tell you, uh, great opportunity
to be with you today. Some wonderful questions. We covered
a lot of ground today. And listen, our heart here
at Faith and finance is along with the entire team
that makes this possible each day, which, by the way,
today was Amy and Anthony and Omar and Jim and
everybody here at Faith. By making this possible, we want
(40:46):
to just be an encouragement to you, help you to
be a wise and faithful steward of God's money. We
believe you've been given a high calling as a money
manager of the King of Kings, and our goal is
that you can glorify God and use money as a
tool to accomplish his purposes, to enjoy it along the way,
but to honor the Lord in all we do. And
it's such a privilege to be able to, uh, take
(41:08):
this journey with you each afternoon, and we're grateful that
you invite us into your homes and your cars and
your place of work and into your story as you
call and share your questions each day. Let me also
just finish by inviting you to be a part of
our team, because as a listener supported ministry, this doesn't
happen without your generous support. The way for you to
(41:28):
invest in this work is by becoming a faithful partner.
We're actually looking for 25 more partners to reach our
goal by the end of our fiscal year. That's June
the 30th. So just five days from now, just go to.
Partners support us at $35 a month or more, and
we send to you as a thank you for issues
of Faithful Steward, our beautiful rich magazine full of great articles,
(41:53):
plus each new study and devotional two per year pro
access to the Faith by app and more including ministry updates.
We're looking for 25 more of you. Would you consider
getting on board today? We'd certainly be grateful. Go to
faithful Faith and finance a partnership between Moody Radio and Faith,
and we'll see you tomorrow. Bye bye.
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