Faith & Finance

Many of the changes brought on by COVID were temporary but some are here to say. That’s especially true in the workplace. We’ll talk about those likely permanent changes today on MoneyWise. Due to office shutdowns during the pandemic, employers bent over backwards to keep work flowing, giving employees much greater flexibility, including working from home, like never before. It was a trend already underway to a limited extent, but analysts say the pandemic catapulted the workplace years or decades into the future practically overnight. HERE TO STAY Organizational psychologist Anthony Klotz, the guy who coined the term the Great Resignation, now says many of those changes are here to stay. Klotz predicted a year ago this month that COVID would spark mass resignations. He sure got that one right. A record 48 million workers left their jobs in 2021, and the trend continues, with four and a half million of them saying I quit this past March alone. Employers are paying a lot more attention to the needs of employees in an effort to retain them and recruit new hires, instituting policies to help with physical, mental and financial health. Klotz says the result is a series of changes that might not have taken place for another 30 years, most notably job flexibility and expanded work-from-home opportunities. The result is that millions of workers have now learned they can do their jobs anywhere. WORKING REMOTELY It’s not a matter of keeping them down on the farm. Workers have proven they can be productive on a farm or anywhere else, like the kitchen table or even the local coffee shop. All they need is broadband Internet. Rather than returning to the office, millions of workers are moving to the suburbs and rural areas, keeping their jobs without having to commute. Or they’re looking for new opportunities that allow them to work remotely. For employees that must come into the office, employers have stepped up onsite changes, including things like a 4-day work week and greater flexibility with hours. It’s not like they have a choice. A study by CareerBuilder showed that job announcements giving employees work-from-home opportunities now draw seven times more applications than onsite positions. And they the gamut of fields, with managers, tutors and therapists being among the most popular with applicants looking for remote work opportunities. Applicants are insisting on flexibility and wellness like never before. A LinkedIn survey found that nearly two-thirds of job seekers now say that the chance to better balance work and home life is a top priority. Many other departing workers have cited low pay, a lack of advancement opportunity and employer disrespect as the chief reasons they quit. Another change sparked by COVID is the huge increase in the number of people leaving jobs to start their own businesses. The Census Bureau reports that applications to form new businesses hit 5.4 million in 2021. So by now you’re probably wondering just who are these companies offering perqs like work-from-home and hour flexibility? It’s no surprise at all that topping the list is Zoom Video Communications. Dell computers is also on the list, along with the travel app Hopper. Intuit is also in the mix, offering work from home for tax professionals, including attorneys and CPAs. The health field is well-represented. United Health, Trusted Health and BroadPath Health Solutions are all giving their employees the opportunity to work from home, among other benefits. That’s what’s happening in today’s workforce. We hope you can put some of that information to use. On today’s program, Rob also answers listener questions: ● What’s the difference between a standard financial advisor and a Kingdom Advisor? ● How do you recalculate Social Security benefits if you reenter the workforce after beginning to draw SS benefits? ● Is there a way to avoid capital gains tax on the sale of a rental property? ● If your employer doesn’t offer a 401k plan, where should you invest? ● What can you do about a late income tax refund? ● Should you hire a professional to handle your taxes or do it yourself using online software? Remember, you can call in to ask your questions most days at (800) 525-7000 or email them to [email protected]. Also, visit our website at MoneyWise.org where you can connect with a MoneyWise Coach, join the MoneyWise Community, and even download the free MoneyWise app. To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29

English philosopher and statesman Francis Bacon wrote, Money is a great servant but a bad master. Perhaps the greatest decision you’ll make about finances is will money serve you or will you serve money?To put it another way: Will money be a blessing to you or a curse? We’ll talk about that today on MoneyWise. IS MONEY A MASTER OR SERVANT? The First Commandment in Exodus 20:2 and 3 states, I am the Lord your God, who brought you out of the land of Egypt, out of the house of slavery. You shall have no other gods before me. Because money can so easily become an idol in our lives a false god there’s definitely a financial application for these verses. Money can become a lower case G god and master leading to spiritual destruction. In Matthew 6, Jesus warns, No one can serve two masters. Either you will hate the one and love the other, or you will be devoted to the one and despise the other. You cannot serve both God and money. Obviously, that passage is about greed, but at a more basic level, it’s also about idolatry. That’s because idolatry is the root cause of many sins and greed is certainly included. In Ephesians 5:5, the Apostle Paul says, No immoral, impure or greedy personsuch a person is an idolaterhas any inheritance in the kingdom of Christ and of God. And Paul makes an even more direct connection in 1 Timothy 6, Those who desire to be rich fall into temptation, into many senseless and harmful desires that plunge people into ruin and destruction. For the love of money is a root of all kinds of evils. It is through this craving that some have wandered away from the faith and pierced themselves with many pangs. So we see that money can, indeed, be a very bad master. THE POTENTIAL BLESSINGS But money is a double-edged sword. It can also be a great blessing. Remember, money itself is not evil. The LOVE OF MONEY is the problem. What we do with money can also be a spiritual barometer. Larry Burkett was fond of saying how you use money is an outward sign of an inward condition. And that’s an idea that we struggle with a lot in Western society. God has given us so much in wealth and material resources, and along with that comes the great temptation to hang on to as much of it as we can. HOW TO BREAK THE CURSE Fortunately for us, God has modeled exactly how to break money’s curse of greed and idolatry,and that’s with generosity. He gave us His only Son that we might spend eternity in heaven with Him. What could possibly be more generous than that? So we see that giving is the antidote for greed. The Lord doesn’t care how much money we have, but He’s keenly interested in how we use it. In Luke 21, Jesus praises the poor widow for giving her two mites, which was all she had. To God, that was far more generous than the temple offerings of the rich Pharisees and Sadducees. So we see that money can be a blessing when it’s used for good. It can provide clean drinking water for children around the world dying of disease. It can feed the poor and fund Bible translations for people starving for God’s Word. God gives us His wealth and His resources to glorify Him, not indulge ourselves. Of course it’s okay to enjoy some of what He’s given us, but within reason. And when we give to further His kingdom, money actually becomes a double blessing, not only to the recipient, but to the giver, as well. Randy Alcorn’s book Giving Is the Good Life is filled with stories of believers who once thought every penny they made belonged to them. But their testimonies reveal they were never satisfied thinking that way. It was only when they came to know the blessing of giving that they became truly happy, and experienced the good life. The point is that money only becomes a curse when we allow ourselves to love it more than we love God. But it becomes a blessing when we us it to show how much we love God. And generosity is the biggest tool the Lord has given us to accomplish that. On today’s program, Rob also answers listener questions: ● How do you advise a friend who is inheriting a large sum of money? ● Is it wise to buy a home right now? ● Is there a point at which you no longer need life insurance? RESOURCES MENTIONED: ● Find a Certified Kingdom Advisor Remember, you can call in to ask your questions most days at (800) 525-7000 or email them to [email protected]. Also, visit our website at MoneyWise.org where you can connect with a MoneyWise Coach, join the MoneyWise Community, and even download the free MoneyWise app. To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29

Brian Holtz, joins us again today. He is the Chief Operating Officer at Compass — Finances God’s Way. He’s also the author of Financial Discipleship for Families: Intentionally Raising Faithful Children.

HOW DO YOU RAISE FAITHFUL CHILDREN AS FINANCIAL DISCIPLES?

• A financial disciple learns and applies Jesus' teachings about money and possessions, and also shares this knowledge with others.
• Parents should instill in their children the understanding that everything belongs to God, as stated in 1 Chronicles 29:11 and Psalm 24:1.
• It's crucial to teach children about stewardship and faithful management of resources, following God's goals rather than personal ambitions.

WHAT ARE THE FIVE PILLARS OF FINANCIAL DISCIPLESHIP?

These pillars guide children in understanding their role as stewards of God's resources and making decisions that align with biblical teachings:

1. Ownership: Recognizing that everything is owned by God.1 Chronicles 29:11 tells us everything in the heavens and earth is His. And Psalm 24:1 says the earth is the Lord’s and all it contains.

2. Surrender: Understanding our role as stewards or managers of God's resources.

3. Choice: Making decisions to handle finances God's way, as exemplified in the Parable of the Wise and Foolish Builders (Matthew 7:24-27).

4. Multiplication: Sharing learned principles with others, in line with the Great Commission (Matthew 28:18-20).

5. Eternal Focus: Keeping in mind the eternal impact of our financial decisions on Earth.

HOW CAN PARENTS USE PRACTICAL OPPORTUNITIES TO TEACH FINANCIAL DISCIPLESHIP?

Brian emphasizes the importance of providing practical opportunities for children and grandchildren to apply God's financial principles. This includes teaching them about working, income, giving, spending, planning, budgeting, and accounting for finances.

• Teach children about earning and managing money, giving them responsibilities and rewarding their efforts.
• Educate them on the importance of planning and budgeting, helping them understand the long-term impact of financial decisions.
• Guide them in accounting for their finances, setting financial goals, and making wise choices.

ON TODAY’S PROGRAM, ROB ANSWERS LISTENER QUESTIONS:

• I'm 66 and planning to retire at 67 and a half with a mortgage of about $161,000. I have $127,000 in savings, which I plan to use to pay off the house. Should I split my contributions between paying off the house and saving, or focus on one?
• As a single mom and teacher planning to retire, I have $10,000 in credit card debt with an interest rate of 11%. Should I take a credit card offer or get a home equity line to manage this debt?
• I'm facing a company transition and have a 401k of about $140,000. Should I roll it over to the new company's 401k, to an IRA, or consider other options?
• I want to help my daughter buy a car by purchasing it myself and then letting her pay me back over time. Should I buy the car in my name and then transfer it to her, or structure it differently?
• I purchased a cemetery plot in the 80s and am now looking to sell it for more than I paid. Do I need to pay capital gains tax on the sale?

RESOURCES MENTIONED:

• Christian Credit Counselors
• Find a Certified Kingdom Advisor
  

Remember, you can call in to ask your questions most days at (800) 525-7000. Faith & Finance is also available on the Moody Radio Network as well as American Family Radio. Visit our website at FaithFi.comwhere you can join the FaithFi Community, and give as we expand our outreach.

Remember, you can call in to ask your questions most days at (800) 525-7000. Faith & Finance is also available on the Moody Radio Network and American Family Radio. Visit our website at FaithFi.com where you can join the FaithFi Community and give as we expand our outreach.

If you qualify for an HSA, you want to make the most of it. But they’re not right for everyone. We’ll talk about where they do the most good and where they’ll have little impact on your budget today on MoneyWise. HSAs can help greatly to save on medical expenses and reduce your tax liability. Money goes into the account tax-deferred, and you can use it tax-free for qualified medical expenses. That’s if you qualify. To be eligible for an HSA, you must have a high deductible health plan or HDHP. That means in 2022, your deductible for medical expenses, the point where your plan kicks in, must be at least $1,400 for an individual or $2,800 for a family. If that’s you, you want to take full advantage of an HSA. Many financial advisers will tell you it’s also a terrific way to save for retirement - for some folks. That’s because at age 65, the penalty for using the money for non-medical reasons goes away, while money used for medical bills is still tax-deferred. So they’re a real win-win, but again, only for some people. If you withdraw money from a retirement account after age 59 , you’re taxed on it, but you don’t pay a penalty. You can use the money for anything, but you do pay taxes on all of it, no matter what you use it for. With an HSA, after age 65, if you use the money for non-medical expenses you’re still taxed. However, at that age, you’ll probably have more medical expenses than you would earlier in life. When you use HSA money to meet those medical needs, it’s tax-free. So in that sense, it’s better than a conventional retirement plan. It’s a double dip. Now, who’s in that fortunate group? These are folks who don’t need to tap into their HSA funds all the time for short-term health care. They're in a position to stockpile that cash for retirement in addition to other qualified plans like a 401k. It’s such a good deal that some advisors will actually tell those individuals to pay medical bills out of pocket so they allow the money in their HSA to gain compound earnings for retirement. This group typically has low medical expenses and rarely reaches their health plan deductible. They’re usually young and have the opportunity to accumulate more money over a lifetime. So this group can maximize their HSA’s potential by investing the money in mutual funds or stocks and not spending it. HSAs are not like flexible spending accounts, so the money keeps rolling over from year to year with compound earnings. By the way, you can contribute to an HSA up to $3650 for an individual and $7,300 for a family in 2022, plus an additional $1,000 for people 55 or over. So that’s great for folks in that group. Young, healthy, and able to contribute the max to their HSA for years and years, but they’re in the minority. What about other folks? Well, most people who qualify for an HSA fall into a large middle group, and they still want to take full advantage of this opportunity. They’re folks who have to tap into the account to meet their medical expenses. In fact, more than half of HSA owners exhaust their total balance every year. But that’s okay, and it’s really what the HSA was designed for. They’re able to take advantage of the tax savings. The money they put in and use for medical expenses is tax-free, so it’s still a good deal, even if the account never builds retirement savings. Now, that still leaves one group who might be eligible for a health savings account, that is, they have a high deductible health plan but they’re still paying a lot out of pocket. For them, a health savings plan by itself won’t be much help. What they really need is to get on a plan with lower deductibles. If that’s you, it might mean paying more in premiums, but you can shop around for a plan that won’t nickel and dime you to death after meeting the deductible. Now, no matter what your medical costs are, you can also think outside the box, and contact our friends at Christian Healthcare Ministries. You’ll find them online at CHministries.org. They have medical sharing plans that could save you a bundle while meeting your healthcare needs. On today’s program, Rob also answers listener questions: ● How can you begin investing with an inheritance? ● Does it make sense to use retirement funds to pay off a mortgage early? ● Is it wise to do a cash-out refinance on a mortgage to pay off consumer debt? RESOURCES MENTIONED: ● Betterment ● Wealthfront ● Schwab Intelligent Portfolios Remember, you can call in to ask your questions most days at (800) 525-7000 or email them to [email protected]. Also, visit our website at MoneyWise.org where you can connect with a MoneyWise Coach, join the MoneyWise Community, and even download the free MoneyWise app. To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29

The future is coming at you fast and if you’re going to be financially prepared, it’s wise to take steps now. Just ahead, we’ll talk about growing your money to meet future needs. Whether you’re saving for a shorter-term purchase or something longer-term such as investing for retirement the best time to start is now. More on that just ahead. Well, we’re grateful to have you along this Monday. And, as you may know, on most Mondays, our first day of the broadcast week, we focus on first principles those underlying precepts that guide everything we talk about on this program. Each week, we talk about one of the five basic ways that we all interact with money. Here’s what they are: We can earn money, we can live on it, we can give it away, we can owe it to someone or to the government, and we can grow it for the future. Earn, live, give, owe, and grow. Today, let’s talk about the last of those five growing money. BATTLING INFLATION The level of inflation we have seen over the past year-and-a-half makes abundantly clear why growing money is so important. Money loses value over time. Let’s say you buried your savings in the backyard to keep them safe, and dug em up 20 years from now. That money would be worth much less than it is now. Its purchasing power would have diminished sharply. Growing your money is the way to stay even with inflation or you might even be able to get ahead of it. So you’re trying to maintain your purchasing power or perhaps even improve it so that you can afford in the future what you may not be able to afford now. The idea of saving for the future is not new, of course. King Solomon is credited with writing most of the Old Testament Book of Proverbs about 2,500 years ago. In one passage, he tells us what he has observed in nature. He writes that some creatures are small, yetextremely wise. He says ants are creatures of little strength, yet they store up their food in the summer. The ants are wise because they know there will come a time when food won’t be readily available, so during the summer, they set it aside they save for the future. In the New Testament, Jesus told two parables that employed the idea of putting money to work and generating a return. In each parable, servants are entrusted with a certain amount of money, and they are expected to take actions that will make it grow. Now, of course, Jesus isn’t just giving a lesson in personal finance or investing. His parables make larger points about stewardship and accountability. But I think we can conclude from the parables that putting money to work to earn a return in anticipation of the future is wise indeed. In fact, it is one aspect of responsible stewardship. Now, what should you do with your money to make it grow? Well, that depends on several factors. One of the most important is your time horizon that is, how long will it be before you need the money. Saving for a household project that you hope to start in 2025 is quite different from saving for a retirement that you expect to begin in 2055. For shorter-term needs, you can’t afford to take as much risk. That means, for most people, that the best options right now are going to be things like a savings account with an online bank online banks tend to pay higher rates or perhaps bank CDs, or certificates of deposit. A great option right now is the i-Bond, a U-S government bond that’s paying almost 10 percent far beyond any other savings vehicle. The downside is that you’ll have to tie up your money for a while and pay a penalty if you make an early withdrawal. For longer-term needs, such as retirement, the best option for many employees is their company retirement account. If you don’t have access to one of those, you can open an IRA an individual retirement account with a brokerage firm or a bank. As for what particular things to invest in, it’s probably best to stick with high-quality mutual funds because most are diversified they hold stocks from many companies. That helps protect your overall portfolio from the wild swings that occur with individual stocks. The advice of Ecclesiastes 11:2 is well worth heeding. It says: Divide your investments among many places, for you do not know what risks might lie ahead. Diversification is less critical when saving for shorter-term needs because the risk level is significantly less. Whether you’re saving for the shorter-term or the longer-term, or somewhere in between, here’s something that applies across the board: The best time to start is now. The longer you save, the better off you’re likely to be because time is a crucial factor in making money grow. Well, we’re out of time for this segment on growing your money. I trust it was helpful. On today’s program, Rob also answers listener questions: ● How should you balance paying off your mortgage with investing? ● When is it wise to refinance your mortgage? ● How do you deal with a family member who is making unwise financial decisions? Remember, you can call in to ask your q...