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Faith & Finance

Christian talk radio with Rob West

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Broadcast Episode

August 16, 2023

Still a Seller’s Market

Despite the Federal Reserve raising interest rates, home prices rose in 7 out of 10 metro markets in the first quarter of 2023. This is due to prospective buyers getting used to the higher rates and staying in the hunt, while prospective sellers are shying away from listing their properties. To buy a home in this market without breaking the budget, it is important to get pre-approved for a mortgage, be flexible with must-haves, and not attempt to lowball a seller. It may also be wise to wait for the market to moderate further, and save up for a 20% downpayment to avoid private mortgage insurance.

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About Faith & Finance

How does your faith in Jesus influence your daily financial decisions? As believers, our faith must be the foundation of our financial stewardship, which is why we're excited to announce that the MoneyWise radio show is now Faith & Finance. Join Rob West and special guests as they address today’s financial questions with biblical answers. To be a part of the broadcast, call 1 (800) 525-7000 or you can email your questions to: [email protected]

More from Faith & Finance

Broadcast Episode

Today

Giving Appreciated Stocks

Stock markets have seen record highs in the past couple of months. Is it a good time to take profits? Well, it certainly can be a good time to take profits if you’ve seen your investments go through the roof recently. And today, I want to tell you about a way to realize those gains for God’s Kingdom. Why Donate Appreciated Stocks? With recent historic highs in the markets, now is an excellent time to consider donating appreciated stocks to your church or other ministries. Donating stock instead of cash can significantly benefit both the donor and recipient, primarily due to its tax advantages. The Benefits of Donating StocksDonating appreciated stocks to a ministry typically gets a higher tax deduction and avoids capital gains taxes. This means you can give more than you might if you donate cash. Here’s why: Tax Deductible: The total value of the stock is deductible. Avoid Capital Gains Taxes: There is no need to pay taxes on the appreciated value. If the stock value has appreciated, donating it directly to a church or charity is usually the best option. However, if the stock has lost value, it’s better to sell it, take the deductible loss, and then donate the cash proceeds. Understanding the Tax BenefitsThe tax benefits of donating stocks depend on the type of organization you’re giving to and your adjusted gross income. Donating appreciated stocks allows you to use their fair market value as an itemized deduction if you’ve held the stock for over a year. Let’s say you bought 50 shares of Mock Industries at $20 each, totaling $1, 000. Those shares are worth $40 each, making your investment worth $2, 000. If you sell the shares and donate the after-tax proceeds, you’d have to pay 20% capital gains taxes on the $1, 000 profit, leaving you with $1, 800 to donate. However, donating the stock directly means the church receives $2, 000, which you can deduct from your taxes. Some ministries may not be set up to accept stock donations and might ask you to sell the stock first. This is less efficient due to the capital gains taxes involved. Using Third-Party OrganizationsOrganizations like the National Christian Foundation (NCF) can handle stock donations for you. By setting up a donor-advised fund or a Giving Fund, you can donate cash, stocks, or other assets, which NCF will liquidate and distribute to your chosen ministries. This method also offers flexibility in managing your taxes. One significant advantage of using a Giving Fund at NCF is the ability to "bundle" your deductions. For instance, if you typically tithe $12, 000 annually, you're still below the standard deduction of $14, 600 for single taxpayers or $29, 200 for married taxpayers filing jointly. However, if you donate $36, 000 worth of stock into your Giving Fund, you can take the full deduction in one year, which can exceed the standard deduction, then spread out your actual donations over the following years. Donating appreciated stocks is a powerful way to increase your giving while reaping significant tax benefits. By leveraging tools like donor-advised funds from organizations like the National Christian Foundation, you can maximize your impact on God’s Kingdom while minimizing your tax burden. On Today’s Program, Rob Answers Listener Questions: Is there a statute of limitations for a collection agency to collect credit card debt? What is the best way to move multiple 401(k)’s from past employers to one account? About $750, 000 was invested with my investment manager across a few investments. I'm being charged 1% in fees, which I understand is standard, but another company mentioned most of my investments are in just 6 ETFs, so there is little active management involved, and I should be charged closer to 0. 8%. Given the passive nature of the strategy, I would like a second opinion on if 1% seems too high. I also have about $50, 000 left on my mortgage with a rate of 2. 75%, and I can pay it off this year. I'm figuring out whether I should pay it off early. Resources Mentioned: National Christian Foundation (NCF)Consumer Financial Protection BureauRich Toward God: A Study on the Parable of the Rich FoolFind a Certified Kingdom Advisor (CKA) or Certified Christian Financial Counselor (CertCFC)FaithFi App

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Broadcast Episode

Today

Giving Appreciated Stocks

Stock markets have seen record highs in the past couple of months. Is it a good time to take profits? Well, it certainly can be a good time to take profits if you’ve seen your investments go through the roof recently. And today, I want to tell you about a way to realize those gains for God’s Kingdom. Why Donate Appreciated Stocks? With recent historic highs in the markets, now is an excellent time to consider donating appreciated stocks to your church or other ministries. Donating stock instead of cash can significantly benefit both the donor and recipient, primarily due to its tax advantages. The Benefits of Donating StocksDonating appreciated stocks to a ministry typically gets a higher tax deduction and avoids capital gains taxes. This means you can give more than you might if you donate cash. Here’s why: Tax Deductible: The total value of the stock is deductible. Avoid Capital Gains Taxes: There is no need to pay taxes on the appreciated value. If the stock value has appreciated, donating it directly to a church or charity is usually the best option. However, if the stock has lost value, it’s better to sell it, take the deductible loss, and then donate the cash proceeds. Understanding the Tax BenefitsThe tax benefits of donating stocks depend on the type of organization you’re giving to and your adjusted gross income. Donating appreciated stocks allows you to use their fair market value as an itemized deduction if you’ve held the stock for over a year. Let’s say you bought 50 shares of Mock Industries at $20 each, totaling $1, 000. Those shares are worth $40 each, making your investment worth $2, 000. If you sell the shares and donate the after-tax proceeds, you’d have to pay 20% capital gains taxes on the $1, 000 profit, leaving you with $1, 800 to donate. However, donating the stock directly means the church receives $2, 000, which you can deduct from your taxes. Some ministries may not be set up to accept stock donations and might ask you to sell the stock first. This is less efficient due to the capital gains taxes involved. Using Third-Party OrganizationsOrganizations like the National Christian Foundation (NCF) can handle stock donations for you. By setting up a donor-advised fund or a Giving Fund, you can donate cash, stocks, or other assets, which NCF will liquidate and distribute to your chosen ministries. This method also offers flexibility in managing your taxes. One significant advantage of using a Giving Fund at NCF is the ability to "bundle" your deductions. For instance, if you typically tithe $12, 000 annually, you're still below the standard deduction of $14, 600 for single taxpayers or $29, 200 for married taxpayers filing jointly. However, if you donate $36, 000 worth of stock into your Giving Fund, you can take the full deduction in one year, which can exceed the standard deduction, then spread out your actual donations over the following years. Donating appreciated stocks is a powerful way to increase your giving while reaping significant tax benefits. By leveraging tools like donor-advised funds from organizations like the National Christian Foundation, you can maximize your impact on God’s Kingdom while minimizing your tax burden. On Today’s Program, Rob Answers Listener Questions: Is there a statute of limitations for a collection agency to collect credit card debt? What is the best way to move multiple 401(k)’s from past employers to one account? About $750, 000 was invested with my investment manager across a few investments. I'm being charged 1% in fees, which I understand is standard, but another company mentioned most of my investments are in just 6 ETFs, so there is little active management involved, and I should be charged closer to 0. 8%. Given the passive nature of the strategy, I would like a second opinion on if 1% seems too high. I also have about $50, 000 left on my mortgage with a rate of 2. 75%, and I can pay it off this year. I'm figuring out whether I should pay it off early. Resources Mentioned: National Christian Foundation (NCF)Consumer Financial Protection BureauRich Toward God: A Study on the Parable of the Rich FoolFind a Certified Kingdom Advisor (CKA) or Certified Christian Financial Counselor (CertCFC)FaithFi App

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Broadcast Episode

Friday, July 19

Giving To Children and Grandchildren with Ron Blue

“A good man leaves an inheritance to his children's children, but the sinner's wealth is laid up for the righteous. ” - Proverbs 13: 22That verse seems pretty straightforward … but it leaves several questions unanswered. What should we leave to our kids…how much…, and when? Ron Blue joins us today with the answers. Ron Blue is the Co-Founder of Kingdom Advisors and the author of many books on biblical finance, including Splitting Heirs: Giving Your Money and Things to Your Children Without Ruining Their Lives. When To Leave Money to Your Kids and When Not ToMany people wonder if Proverbs 13: 22 means they must leave money to their children and grandchildren. This verse should be seen as a principle rather than a command. In biblical times, wealth stayed within the family because no charitable organizations existed. Today, leaving a financial inheritance is a personal decision, not a mandate. If you believe God owns everything, the final decision you make as a steward is who receives His resources. If you think your heirs might misuse or squander the inheritance, it’s worth reconsidering. Money can be harmful without wisdom, whereas wisdom can create and sustain wealth. The fundamental principle is to impart wisdom before leaving money. If your children and grandchildren still need to gain the wisdom to manage resources responsibly, leaving them money can do more harm than good. Wisdom should always precede financial inheritance. When making decisions regarding wealth transfer, asking the right questions is crucial. A good question is, “If we leave this money to this child, what's the worst thing that can happen? " This question can help anticipate potential consequences and make informed decisions based on the likely outcomes. Treating Heirs Uniquely It's essential to understand that treating your children equally doesn't mean giving them the same financial inheritance. Each child is unique, and their needs and circumstances vary. Just as God treats us uniquely according to what’s best for us, parents should consider each child's needs and potential consequences when deciding on wealth transfer. The goal is to ensure that any financial inheritance supports and enhances the lives of your heirs rather than causing harm. By asking the right questions and understanding the unique needs of each child, you can make decisions that honor God's resources and benefit your family in the long term. Ron Blue’s book, "Splitting Heirs: Giving Your Money and Things to Your Children Without Ruining Their Lives, " is a must-read for those navigating this complex topic, offering detailed guidance and thoughtful advice. On Today’s Program, Rob Answers Listener Questions: I need help managing my finances throughout my career, including multiple jobs and retirement accounts. Can you advise me on getting a financial advisor or someone to help me keep track of everything? I want to ask about cashing in several Savings Bonds I purchased in 1998. Since then, I have moved several times and cannot locate the bonds. Can I cash them in without having the physical bonds, or am I out of luck? Is it too late for me to buy a home? I am 58 years old and earn $98, 000 per year. Home prices are costly right now, so I wanted advice on whether I should still pursue buying a home or if I am too old. I want to make a biblically sound decision. Is it biblical for my husband to have complete control over our finances and not allow me to use any money other than what he gives me for groceries each week? He reviews the grocery receipts to ensure I haven't purchased anything else. I shouldn't have to ask permission for every purchase since I am an adult, but he thinks this is the proper way to handle our finances. Resources Mentioned: Splitting Heirs: Giving Your Money and Things to Your Children Without Ruining Their Lives by Ron BlueTreasuryDirect. govRich Toward God: A Study on the Parable of the Rich FoolFind a Certified Kingdom Advisor (CKA) or Certified Christian Financial Counselor (CertCFC)FaithFi App

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Broadcast Episode

Friday, July 19

Giving To Children and Grandchildren with Ron Blue

“A good man leaves an inheritance to his children's children, but the sinner's wealth is laid up for the righteous. ” - Proverbs 13: 22That verse seems pretty straightforward … but it leaves several questions unanswered. What should we leave to our kids…how much…, and when? Ron Blue joins us today with the answers. Ron Blue is the Co-Founder of Kingdom Advisors and the author of many books on biblical finance, including Splitting Heirs: Giving Your Money and Things to Your Children Without Ruining Their Lives. When To Leave Money to Your Kids and When Not ToMany people wonder if Proverbs 13: 22 means they must leave money to their children and grandchildren. This verse should be seen as a principle rather than a command. In biblical times, wealth stayed within the family because no charitable organizations existed. Today, leaving a financial inheritance is a personal decision, not a mandate. If you believe God owns everything, the final decision you make as a steward is who receives His resources. If you think your heirs might misuse or squander the inheritance, it’s worth reconsidering. Money can be harmful without wisdom, whereas wisdom can create and sustain wealth. The fundamental principle is to impart wisdom before leaving money. If your children and grandchildren still need to gain the wisdom to manage resources responsibly, leaving them money can do more harm than good. Wisdom should always precede financial inheritance. When making decisions regarding wealth transfer, asking the right questions is crucial. A good question is, “If we leave this money to this child, what's the worst thing that can happen? " This question can help anticipate potential consequences and make informed decisions based on the likely outcomes. Treating Heirs Uniquely It's essential to understand that treating your children equally doesn't mean giving them the same financial inheritance. Each child is unique, and their needs and circumstances vary. Just as God treats us uniquely according to what’s best for us, parents should consider each child's needs and potential consequences when deciding on wealth transfer. The goal is to ensure that any financial inheritance supports and enhances the lives of your heirs rather than causing harm. By asking the right questions and understanding the unique needs of each child, you can make decisions that honor God's resources and benefit your family in the long term. Ron Blue’s book, "Splitting Heirs: Giving Your Money and Things to Your Children Without Ruining Their Lives, " is a must-read for those navigating this complex topic, offering detailed guidance and thoughtful advice. On Today’s Program, Rob Answers Listener Questions: I need help managing my finances throughout my career, including multiple jobs and retirement accounts. Can you advise me on getting a financial advisor or someone to help me keep track of everything? I want to ask about cashing in several Savings Bonds I purchased in 1998. Since then, I have moved several times and cannot locate the bonds. Can I cash them in without having the physical bonds, or am I out of luck? Is it too late for me to buy a home? I am 58 years old and earn $98, 000 per year. Home prices are costly right now, so I wanted advice on whether I should still pursue buying a home or if I am too old. I want to make a biblically sound decision. Is it biblical for my husband to have complete control over our finances and not allow me to use any money other than what he gives me for groceries each week? He reviews the grocery receipts to ensure I haven't purchased anything else. I shouldn't have to ask permission for every purchase since I am an adult, but he thinks this is the proper way to handle our finances. Resources Mentioned: Splitting Heirs: Giving Your Money and Things to Your Children Without Ruining Their Lives by Ron BlueTreasuryDirect. govRich Toward God: A Study on the Parable of the Rich FoolFind a Certified Kingdom Advisor (CKA) or Certified Christian Financial Counselor (CertCFC)FaithFi App

Loading the player...

Broadcast Episode

Friday, July 19

Giving To Children and Grandchildren with Ron Blue

“A good man leaves an inheritance to his children's children, but the sinner's wealth is laid up for the righteous. ” - Proverbs 13: 22That verse seems pretty straightforward … but it leaves several questions unanswered. What should we leave to our kids…how much…, and when? Ron Blue joins us today with the answers. Ron Blue is the Co-Founder of Kingdom Advisors and the author of many books on biblical finance, including Splitting Heirs: Giving Your Money and Things to Your Children Without Ruining Their Lives. When To Leave Money to Your Kids and When Not ToMany people wonder if Proverbs 13: 22 means they must leave money to their children and grandchildren. This verse should be seen as a principle rather than a command. In biblical times, wealth stayed within the family because no charitable organizations existed. Today, leaving a financial inheritance is a personal decision, not a mandate. If you believe God owns everything, the final decision you make as a steward is who receives His resources. If you think your heirs might misuse or squander the inheritance, it’s worth reconsidering. Money can be harmful without wisdom, whereas wisdom can create and sustain wealth. The fundamental principle is to impart wisdom before leaving money. If your children and grandchildren still need to gain the wisdom to manage resources responsibly, leaving them money can do more harm than good. Wisdom should always precede financial inheritance. When making decisions regarding wealth transfer, asking the right questions is crucial. A good question is, “If we leave this money to this child, what's the worst thing that can happen? " This question can help anticipate potential consequences and make informed decisions based on the likely outcomes. Treating Heirs Uniquely It's essential to understand that treating your children equally doesn't mean giving them the same financial inheritance. Each child is unique, and their needs and circumstances vary. Just as God treats us uniquely according to what’s best for us, parents should consider each child's needs and potential consequences when deciding on wealth transfer. The goal is to ensure that any financial inheritance supports and enhances the lives of your heirs rather than causing harm. By asking the right questions and understanding the unique needs of each child, you can make decisions that honor God's resources and benefit your family in the long term. Ron Blue’s book, "Splitting Heirs: Giving Your Money and Things to Your Children Without Ruining Their Lives, " is a must-read for those navigating this complex topic, offering detailed guidance and thoughtful advice. On Today’s Program, Rob Answers Listener Questions: I need help managing my finances throughout my career, including multiple jobs and retirement accounts. Can you advise me on getting a financial advisor or someone to help me keep track of everything? I want to ask about cashing in several Savings Bonds I purchased in 1998. Since then, I have moved several times and cannot locate the bonds. Can I cash them in without having the physical bonds, or am I out of luck? Is it too late for me to buy a home? I am 58 years old and earn $98, 000 per year. Home prices are costly right now, so I wanted advice on whether I should still pursue buying a home or if I am too old. I want to make a biblically sound decision. Is it biblical for my husband to have complete control over our finances and not allow me to use any money other than what he gives me for groceries each week? He reviews the grocery receipts to ensure I haven't purchased anything else. I shouldn't have to ask permission for every purchase since I am an adult, but he thinks this is the proper way to handle our finances. Resources Mentioned: Splitting Heirs: Giving Your Money and Things to Your Children Without Ruining Their Lives by Ron BlueTreasuryDirect. govRich Toward God: A Study on the Parable of the Rich FoolFind a Certified Kingdom Advisor (CKA) or Certified Christian Financial Counselor (CertCFC)FaithFi App

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