Big Questions About Faith-Based Investing

ADM bringing over face to investing hinge to rub a lot of questions should investing for Christians look different than those for the rest of the world.

Does God care about the kinds of companies we invest and how do we reconcile her faith convictions with learning more money today host Rob West welcomes Jason Meyer of Eventide to answer those questions and more that will take your calls on any financial topic at 800-525-7000 800-525-7000 times more questions about faith investing that's next on moneywise line initializes in faith-based investing and the financial underwriter of this program. Our guest Jason Meyer spends his time helping audiences understand the importance of faith and values when we invest well and nobody explains it better. Jason the real delight to have you back on the program with us. Thank you, Jason.

Some listeners may not be familiar with faith-based investing despite a growing discourse in this country in the investing world so want to begin today with the definition so for a moment. Well conducting employee company ownership will be about our money will go to mall ownership in any of the financial return will come from the activity that we out now if we think about that. I think that we can understand that the stewardship and that they can be thought of as two-sided coin 15 according about getting a good return.

The other side of the coin is about how that return earned the company on the product but the fact that people are generating a profit, and both are important right arm without sacrificing one of the other returns are important and so are the kinds of companies that we out and faith-based and Gothic giveaway return by investing in companies that are a good collection of our faith convictions in our belief value will commitment the life truly helpful.

Jason C.

Question is why does state based investing matter. What makes it so different from traditional investing problem with traditional investing have today become all about the numbers focused on the return now by connection in the activity that will let me. And I think that a few years ago pending a large conference and I was listening to a payment portfolio manager talk about that. I pride myself on not knowing what's in our portfolio. The portfolio manager's job to accompany for his portfolio client for the now anything that you consider that a point of pride not even know the name of the companies you think will be well. You might've got a number the quantitative investor looking at a stock and evaluating it the right combination of numbers and metric will hate the portfolio and pointed out that She removed the name of the company from the user can just focus on numbers.

I think that we can appreciate the level of the one that you have here but I think something right were nothing that other side of the coin. We kept the return lost by the importance of the kinds of companies that were investing info you know if we think about investing is just the numbers of the chart and the facts and figures.

I think faith-based investing is to make a lot of, but if we could get behind the numbers.

And remember that adopting of company ownership. I think faith-based phone think the world right. One of the companies that we out here money coming from one of the products and services that are generating a profit that are finding my future and from faith perspective how you feel about all have to remember that the wide world have a lot of product services and activities on offer and not all of them are good reflection of our faith right so think about tobacco workforce and knowingly traditional as on the Jason Meyer of Eventide is with us today more buying a home is the largest most nerve-racking perches. Most of us ever make. It doesn't help that you're entering a maze of unfamiliar words and confusing options that can leave you intimidated frustrated and afraid you been taken advantage of navigating the mortgage amazed by Dale Vermillion helps you clear up the confusion on rack your nerves and make the best mortgage decisions possible with confidence navigating the mortgage made available when you click the start button moneywise live.org for 30 years and sound mind investing has been helping Christians reach their financial goals. Step-by-step guidance for investors at every stage from those just getting started, those getting ready for retirement through scriptural principles and practical suggestions. SMI offers financial wisdom for living well. More information in the short via webinar on profit and peace of mind, no matter what's happening in is available at sound mind investing.change.

Thanks, let's get to the car because we have to think that girl just gave me an extra dollar change now that yeah but it's not ours. What if someone saw you drop a dollar bill is doing the right thing and that's exactly what we did mind ma'am excuse me, but I think you gave me too much change here. It doesn't matter. God no.

26 through eight says similarly encourage the young man to be so in everything send them an example doing what is good in your teaching show integrity, seriousness and soundness of cannot be condemned so that those who oppose they have nothing bad to say. And if that is robbing you of freedom and peace of mind. Christian credit counselors can help where a nationwide nonprofit counseling organization has helped over 3000 individuals in the last 27 years get out of credit card debt percent faster well during that phone to learn how Christian credit counselors can help you visit Christian credit counselors.org Christian credit counselors.org or call 800-557-1985 and ended and explained it.

That's exactly where we are right now where I'm excited that we get to explore this topic. Periodically because, frankly, so many of our listeners are unaware that their values can be reflected in the companies they own in the word alone is key because as you said before the break. Jason stock investing is ownership its ownership in real companies, albeit in small percentages so as summarize for us again as we continue to unpack this why that matters.

Yeah helpful for me to every dollar my wallet or it might take account my IRA my 401(k) not the dollar dollar 40 story about how that dollar earned, and I think they got here about the dollar, but I think that he also cared about the story story about how the dollar earned, and I think that he wanted to be a good story right worry about business activity that help my neighbor improve the lives of other left others that brought about a measure of joy think the world and faith-based conducting a way for me and for you to pursue good story behind the dollar that were burning in our investment account. Not two dollars and felt silly talk today about the impact that it can make in our lives knowing that we're involved in these companies since we can have alignment with our values.

But what about the impact in the world does faith-based investing actually make a difference in the world.

Yeah, I think a lot of people are capital about my tiny IRA. I have a small amount of money and what different possibly make me forget about that all the other people who are bringing their tiny IRA and tiny 401(k). I think there's an asset manager taking our tiny irate 401(k) and cooling with hundreds of thousands of other investors and my company. We manage no more than 6 billion that were often a top shareholder in the company that we invest have to remember not just me faith-based conducting your adjoining bath coalition of other investors who are quickly allocating their capital alongside of you will have a tremendous impact on reshaping the world. Dr. Henry cloud based on your program before illustration. Looking in and carrying the wind finally bring a fan lock in there. All the other who are bringing their and together they build large and help with remarkable patient and complexity like that with investing my money I might amount to a great fan but then we lock in their all of the other doctors and collectively were building something remarkable. I think changing the world.

The process I love that illustration here working together, our investments can change the world's aspect to this. Though we talked about it recently on the program I want to get your take on it and that is the idea of shareholder engagement engaging companies directly and using your position as an owner in the company to affect change. Talk about your view on shareholder engagement and what's happening in this space yeah yeah company ownership.

We talked about that and ownership come with a government power company as an owner, you have a boy company owner you can change the board to change the yeah change the mission statement and Christian you government power to affect major world change in history, but let me give you an amazing example that we go back to the early 1970, Christians were very concerned about our thought that maybe Bobby on the history of apartheid. The word South African language that need separation translated literally.

Apartheid work to keep separate and ride the fictionalized racial segregation of the black population in the white population.Africa day and I think that with the black population was treated inferior Christians were very concerned about that, and government pressure what the working of the South African government had already ignored multiple United nation patient and target you do. You're a Christian, you care about this issue well group of Christians decided to take up the power of inducting to change the world using the shareholder engagement so a group of people and doctors decided to file with all the shareholder revolution with General Motors, the automotive company, General Motors had operation in South Africa and doctors that he were owner, GM.

Let's ask GM to change their way and they lifted the help of the name Leon Sullivan black Baptist minister is someone who was also passionate about this, and they came up with were called old incredible proposal for General Motors that would benefit by the vector conference with things like equal pay for equal work and working conditions for black and white integrating restroom and work on both were separate at the time think like that.

General Motors said will do it. In fact, maybe they bring Leon Sullivan Baptist minister on the board of General Motors and then got what happened in Goodyear to other automotive companies that had operation. Africa will do it for you and one by one like dominant culture began to change in history. Remember that one of the key instrument of apartheid not be key.

Actually, that Dr. pressure.

By the way, the investor they had a .004% interest in General Motors and yet the world they came alive with millions the black population in South Africa for the story, but I think we have time for one last question and I think it's a big one. If you don't mind, but can we still pursue a competitive return through faith-based investing.

I believe the question is yes go in early pioneering day.

Think I will admit that it was much harder. There were a lot fewer choices but half were higher in the last decade.

In particular, faith-based investing has evolved now into a global movement where there are now hundreds of billions of dollars flowing toward the approach and the landscape changed that option now. Talk to come down to market competition performance of got better faith-based investing funds have often times one award and recognition from secular Wall Street on the basis of performance alone. Now I got a court Performance is no guarantee of future return nothing about possible a lot of our money, but I think that faith-based investing has matured that that we can now pursue our faith conviction in the way that we about while at the same time pursuing attractive and competitive rate of return. Well, it's an exciting time to be alive. Jason because you're right, we can reflect our values and our decisions related to our financial planning but also in our investments and you've given us examples today about how not only we can make a difference in the world, but how we can change corporate America through even our fractional ownership. Jason always a joy to have you with us, my friend. We always learn a lot. Thanks for being here happening and to learn more about faith-based investing in Jason Meyer and their organization. Visit their website. Investing eventide.com your calls next at 800-525-7000 800-525-7000 nine Steve Moore will be right back after this a wrong turn when it comes to money. We all clear financial potholes magazine is all about helping you make money when my Articles to steer you in the right direction where free magazines.

Inspection is waiting for you. #2X the purpose three purposes. I want to share with you unification number to words he knows trying to claim the land that God had given them when they divided given the banner and they set the thing down because it – and we are laying claim to this land parcel was also possession usually is not just laying claim to the property was laying claim to the property for patient on your reading professional teams get one when they been praying God's agreement to you more about our money than most of us imagine Jesus is more about our money and possessions and about anything else, including both heaven and hell and managing God's money on the radio and breaks it all down in a simple, easy to follow format that makes it the perfect reference to if you're interested in gaining a solid biblical understanding of money, possessions and eternity managing God's money is available moneywise live.org hello this Friday here moneywise live so good to have you out there today know if we can help you with anything financial. After all, the name of this program is moneywise we apply some wisdom to your money that would come from God's word. But what your question involves saving or giving your investing or what God wants you to do or to build or buy yourself. Let's chat about those things. 800-525-7000 Rob West you're taking your calls and questions on any topic. 800-525-7000 and Rob are you doing today son and in different anything new, unique and fun going on in your life's are, let's see all kinds of things all season is upon us so got to my boys playing games tonight and were headed out of town tomorrow. Headed to Boone, North Carolina ration for Thanksgiving to be beautiful up there so yeah lots going on that's very cool. Not Boone is named after Daniel Boone. Would you know that I wouldn't know that, but I know there's a Daniel Boone and that we love to eat it over there so many go out on a limb and say yes I will say though in the shoebox season because you know it's operation Christmas child season actually believe this is collection week. If I'm not yet taken Boone is the home of Samaritans purse have actually toured the shoebox factory where they put everything together and assemble everything Capuchin point.

It's amazing doing really well, yeah, and it was just a few weeks ago that we had a representative from that organization and my wife and I have been that will in the earlier years refilled shoeboxes. We've done that ourselves in a while, but we certainly help support them financially and it's a wonderful ministry and I'm not sure if there's still time to get involved, but you could you could check them out online Samaritans person sure is easy to find diverse set.org is the place to go and actually you can assemble your box online this year are socially distanced, so you check that out. I will say also, Jim Henry our incredible researcher today did in fact Steve confirm that all moon is named after Daniel Boone. He actually camped in the area, number of times and maybe even carved his name in a tree, but knowing no knowing Jim, he probably hung out with the and they're both about to see how Mike 800 fax or abet 800-525-7000 Patricia in Chicago. What you question how can we help question about my market. When everything anything black and one point but I want to refinance from 30 mortgage lender given me only got .75 only refinance and I don't know what I'm going 15 to 30 years and my market will be going up $200 a month claim by the question concerned that I have my mortgage loan amount.

Go up $6000 more working out where I The closing fee. Everything going to have to come with $2000 cash for closing cost $6000. What can be added to the loan, but I will go from FHA to conventional.

I will get that mortgage insurance which is $73 .0 so that 20 question yeah well it's a great question and I have a few questions for you. So I like the fact you're going from FHA to conventional because yet you will drop that PMI which does nothing for you, other than to provide a monthly expense that sell for the benefit entirely of the lender. Beyond that, the what is your current rate and what grade is he quoting you for this new 15 year 3.50.

Accordingly, I'm getting 2.75 okay, what's the total amount of the mortgage right now to 214,500 and would be going up at the end of the loan 220,300 okay and what did you say the total costs are going to be the closing costs while coming with $2000. I will be getting back about $900 and I wouldn't pay much. Cambridge January so that the free market so the $2000. I would initially be getting back okay where's the 6000 or so that's being added to the mortgage. Where is that coming from share, but their fee instead of coming with a lump-sum of closing, working at the market. Here's the thing you really need to understand exactly what's going into that it did.

Perhaps some of it could be a prepaid escrows in anticipation of the mortgage company paying your tax bill for property taxes when that comes due next year. It's Artie been paid for this year homeowners insurance. Of course the appraisal and there and some taxes but you want to understand exactly what's in there. It's not just a matter of how much am I gonna have to come with and how much gets rolled in. You want to make sure that the numbers work in their ordinary because you know I wouldn't expect you to spend more than 1% on the cost of the refinance a 1% on a $220,000 loans $2200 all in, perhaps beyond that you even 2%, maybe 4000 but certainly not more than that. If you're bringing 2000 the table and were increasing the mortgage by 6000 others, $8000 worth of something that's going into that that I really want to understand what that is also likely to get a few more estimates your bottom line is you can turn a 30 year mortgage and with 15 year mortgage without refinancing just by sending more every month so it needs to make sense in terms of the actual amount you saved in interest every month over the life of the loan. So I want you to do a bit more analysis and the wind will talk about how you do that all fear as we head into this break and we appreciate your call.

Thank you Pat this moneywise live. Investing is more than just return it's an expression of who you are and what you value is the way you invest your money like your identity as a Christian that eventide design investments for performance and a better world so you can invest with confidence to reach your financial goals while remaining truly are Christian values and commitments. We call this investing makes the world rejoice more is available eventide.com invest eventide.com Christian healthcare ministries enables believers to meet their healthcare costs affordably and compassionately is not insurance but a voluntary cost-sharing ministry based on the biblical example of Christians sharing each other's needs and members are defined under the law for not having health Christian healthcare ministries might be your health cost solution call 800-791-6225 or visit CH ministries.org by my name is Ryan Koch youth ministry major verse in Galatians 220 I have been crucified with Christ is no longer I live, but Christ lives in the life I now live in gave himself for me is our online to let you know about all things outside of the radios free monthly newsletter delivered straight to your exclusive stories, helpful articles and updates on what's happening and we just really energized. Now there's even more to discover. Subscribe today to my radio.my radio. Do you know if you have enough money of house. Do you know how much is enough. If not, one blue can help with this book.

Mastering your money a step-by-step plan for experiencing financial contentment. Learn how to save and invest wisely create a long-term financial plan and how to get out of debt. Find it all. Mastering your money by Ron blue available when you click the start button moneywise live with answer Agnew in Washington has issued regulations that could lower the price Americans pay for many prescription drugs. The administration's rule to apply what Medicare pays for prescription medications to the lowest price paid globally by advanced countries is termed most favored nations approach and half weeks since election day present from pleasure to concede the election to former VP Joe Biden White House Press Secretary Kaylee McInerney says there's a legitimate reason for the absence of the concession, namely lot? About the way some of the ballots counted in various states.

White House coronavirus task force member and CDC Dir. Dr. Robert Redfield said today he thinks a decision to close some schools based more on motion and not on the data, noting that high schools are simply not a source of the problem when it comes to cover 19 this is answer Agnew's right neck moneywise live where we start numbering. All we can help you ace you manage it all.

Call right now toll-free 800-525-7000 to speak with Rob West 800-525-7000 Chicago being what your situation with your credit cards and a lot of credit card and credit, but I would like to thank you both are knowledgeable in the word, with what you doing I thank you for always helping your so sleepy. I appreciate that you know it's really not a function of the number of cards that you have outstanding as to whether or not you go to see a real impact on your credit score. It has more to do with number one. What types of lenders are you working with the working with top tier lenders are you working with finance companies, number two has to do with your debt to limit ratio so the total amount by card in terms of what's balance are you carrying versus what's available to you so there's a $10,000 limit you would want to carry more than 3000. Now I'd like for that number to be zero right pay it off in full every month but in terms of your credit score anything about that 30% threshold is going to impact you negatively and that holds true for the full amount as well. The total of all of your accounts in terms of available limit versus the balances that are owed in the aggregate. That's also going to impact the main reason be that we encourage folks to limit the number of cards that they have is any open accounts have the ability to be compromised fraudulently so somebody gets a hold of your account number in your information and they're able to use that online fraudulently because that's so prevalent these days. We need with all of our accounts, checking savings, but certainly those credit cards we need to be checking those accounts every month at a minimum, to make sure there's not any erroneous transactions on their because that would be a great red flag that somebody's compromised our account is using it to charge things without our permission.

And so I think given that it's in our best interest to limit the number of active accounts that we have so there's less chance for accounts to be compromised, but number two it's just less incentive to go out and charge something on a credit card that perhaps is beyond what's in your spending plan because remember we only want to use credit cards for budgeted items so I recommend this is what I do is I have a debit card. I have one credit card that I use in my wife uses for our budgeted items every month and we've selected that card carefully, and it does change periodically based on who has the best cashback offers and that I have a business card that I use for business expenses and that's it and it keeps it really simple. Those are the only three have to track every month and if you have additional cards may be store card you open to get a discount or something that you've had in the past that you're no longer using.

I would encourage you to close those over time, maybe not go through. For once, but maybe one or two. Now, in one or two. Six months from now so you can simplify your financial life and spirit back to something more manageable. Does it make sense to get a grant now. Yeah, I mean that there's not an exact science.

To that, but the idea that you stagger that does have some merit in terms of how the algorithms are created and so I think if you took that approach that would work very well for you be thank you very much. Have you ever heard of anyone who decided what cards to keep based on color knowledge, but if you do that. I never arrived.

I suspect Stephen we put out that out there. There would be somebody that calls that I will say the Apple credit card is made it's cut out of some sort of metal and I saw one the other day. I don't have one I saw in the other day.

It is very cool if you get one with it, would you share that with us if you get one is not the number but maybe just hold it aid you know what you shouldn't call us with advice like that you shouldn't, but if you have to. Here's the number 800-525-7000. We love to hear from you of Fort Payne, Alabama hey Jessica, what's your story what your situation, how can we help our fellow and we are currently writing. I think I bailed my claim that we could be pretty cool. Maybe getting a little interest. Well first of all Jessica I love that you not heard of more and more people do you think somebody that I work with here at Kingdom advisors and moneywise media did the exact same thing. Their kids are grown out of the house. They sold their home. They bought a camper they've downsized. Got rid of a lot of stuff drastically simplified their lives and that they love that. Now they may not do it forever, and as you and your husband have already said this is a temporary move for you, but I think there's a real trend and not only smaller homes. These tiny homes were hearing a lot about, but just trying to simplify things and there's something to be said about that now, as you all prepare perhaps save and get ready for building on this property, which sounds fabulous as well. I love the idea that you're thinking about maximizing that savings. So here's what I would say I would use an online savings account because you can get a higher interest rate but it's still good to be an FDIC insured bank you could go to bank rate.com and look at several options to compare them. I'll tell you of the three that I like the most right now our ally capital one 360 and Marcus. All three of those been around a long time there major institutions known for their customer service. Marcus is backed by Goldman Sachs. It's the retail arm capital once the biggest financial institutions in the world and an ally is an online bank newer to the space but very strong and are known for their customer service with with all three of those you can get about .6% so little more than 1/2 a percent so not a ton, but it's something right and there's no fees or expenses on a monthly basis to maintain a savings account.

You can link your write up your checking and move money electronically and it's FDIC insured so you have the full faith and credit of the United States government backing it so that would be the kind of the holding place for that money.

Jessica and the money you'll add to it. Between now and when you start construction that doesn't make sense, like where I wake creature can yeah and I actually love that approach. Jessica exhibits got out of sight out of mind. It's automatic. It happens every month is not the temptation with the checking account. That's a little inflated to go out and spend it, you know, you don't even see it just goes right in there. I think that's exactly the way to go Jessica I have to ask you if you don't mind. How big is the camper you guys moved into okay as it is you and your husband Jessica we love you guys you doing stand the line if you would mind. We just want to get information from you. This is moneywise live many of us in The financial wealth you leave behind could be the best thing that ever happened to your loved ones or the worst in splitting hairs, giving your money and things to your children without ruining their lives. Ron blue explains why it's important to make these decisions now, instead of forcing your heirs to do it later. Splitting hairs will foster a real appreciation for the precious resources that God has entrusted to you, and it's available. Click the start button moneywise live.org hi I'm very tired. I'm here to help you understand the urgency and how much fun it is to share your faith in the eyes of a layman. If you think you can change your depleting. You for all the wrong reasons. Apart from God is all but impossible to have a good day at work, but with God the worse it gets. The closer we get to the sound of the trumpet in the rapture of the church. The book of Revelation says that this is the time to encourage each other as second Peter tells us now is the time to be diligence of God when he returns will find is fully engaged in reconciling the loss with him. What we can change his internal destination of all our friends and loved ones and synergy John 5011 tells us that when we bear fruit is your rain where this hard jewelry day no matter what that there's nothing more exciting than knowing God is using you to move people closer to join his nightmare.com I was sitting in my hotel room recently line close my eyes so my wife's face wasn't online anymore any time. It that you picture someone left you just flood your body is supposed to with God. Can we actually get good question why he sent his son Jesus. What God looks like. Jesus, God became man God who love the unlovable God who suffered and died for me. You in the very beginning, he said, left a polite and the walls. It's the same God who wants to shine the light of knowing in the face of Jesus Christ in a minute.

We held line. We feel Google paddle different lives. Jesus money and life run on the same track. Unfortunately, sometimes it seems like your money is heading in a different direction from your goal, and never enough three keys to financial contentment.

Author Ron blue helps you to break down all your financial options to a basic floor and then shows you how to keep it all chugging along in the right direction on the same track never enough three keys to financial contentment available when you click the store button moneywise live.org moneywise live as last time Steve Moore here's her phone number jotted down there in the fridge. What it's like in the old days I was around for part of the people did step up stuff up in the fridge and now they do. So I'm not sure what happened at some point in time, something changed. I have my crack Information guy Jim Henry look into that for us. When did the refrigerator become more of a major part of the family friendly approach to living Jim Chuck Greenfield told Indiana W GNR and Jean. We know you been holding thanks so much. How can we help my mortgage which I took 23.30 I could no escrow I paid insurance and I paid 13 12 year what I would help with a reduction -363 point during 2031 be paid off in 2035 yeah, it certainly does appreciate all that background, I love what you're trying to do here so you're saying one extra full payment per year.

Is that right only yes ma'am very good you know typically what we would see it. It does very just based on a number of factors that balance the interest rate support, but typically if you're making an extra full payment here and you do that for the life of the mortgage. That'll take a 30 year mortgage and cut about four years off of it, depending upon the interest rate that alone in it and it does obviously have a greater impact you as you go.

So I think the key here. Do you are you comfortable using the Internet okay okay no problem, that's fine. What you could do a couple of things. Number one is you could call your mortgage company are you looking for a certain period of time that you wanted paid off by like you try to figure out how much do I need to send to have it paid off by this year or you just asking more generally, generally okay because they be happy to help you with that. You could call your mortgage servicer, whoever you send your monthly check to and you could say run me and it's called an amortization schedule run me an amortization schedule based on me sending one extra payment a year so I can see exactly when it will be paid off and then maybe as a second option you could ask them to say, send me a schedule showing it paid off by this year by December of this year and else okay in order, paid off by December this year.

You need to send this much extra per year or more per month and they can run those schedules for you.

The other option Jean would be to connect with one of our moneywise coaches and if you wanted to do that I could have my producer. Take your information, we could have somebody call you. These are trained volunteers, godly men and women who just this is their ministry to help folks with their budgets and their spending and debt repayment plans, but in this case they be happy to help you get to a what's called a mortgage calculator on their computer and put in your information and help you run some scenarios, so you know exactly what you're looking at either of those options. Calling your mortgage servicer or connecting with one of our coaches to work with you over the phone would be available to you.

Which would you prefer great okay so let's do this Jean you hang on the line my producer Deb is going to capture your information working to get in touch with you.

Somebody will reach out to you tomorrow by phone and I connect you with one of our coaches. It may take a week or two before somebody's available, but they'll walk with you through this process and get you the information that you're looking for.

Okay.

All right.

You're welcome. You're so sweet to call and think of us, and will look forward to talking you again real soon. God bless Jean Bless you, thank you very much quickly.

A Fort Lauderdale Lucy, what you question for for Rob last Lucy be happy to help. I want to clarify what I'm hearing I heard annuity did you mention a specific type of annuity okay I'm not following that deferred annuity okay I think that's what I'm here yeah and then what was the alternative, what else are you looking all fixed deferred annuity okay very good yeah. The key here is that you need to understand is that with the deferred annuity. All annuities are deferred.

The question is just how does the accumulation happen. So you put in a lump sum of money with an insurance company. They give you an insurance contract. There's some sort of death benefit attached to that, and in addition to that there some sort of savings component is a part of this and with an annuity.

You either have a what's called a fixed annuity that's growing at a stated interest rate over time equivalent to how long you can leave it in there and what the prevailing rates are at the time, or you have a variable annuity which is where there's an investment component typically inside of it. Think of mutual funds, like a 401(k) and you capture some or all of the upside of those mutual funds and in some cases and this gets a little complicated. There's even a floor in terms of they say you're guaranteed not to lose anything and will give you a portion of the upside, so you get a little bit of growth and you don't have any of the losses that's that's the difference between the variable annuity and the fixed annuity and then after it accumulates during what's called the accumulation phase, then you have a choice as to how you're going to take that money out.

Are you going to take it out as a lump sum after it's grown down the road. Or you can take it as a monthly income stream. Like a pension or Social Security something that comes every month throughout your life or your life.

Plus your spouse's life, something like that and that's called the annuitization phase, so hopefully that gives you some help. If you use a computer. Lucy investor PDF nerd wallet would be to great options for you to do some reading about annuities to get some more information. Lucy, thank you very much. We hope that helps you today. Let's quickly go to Cleveland Ohio KCl your final caller today will have to make it quick so what's on your mind and you had mentioned earlier on their credit card how you a hard time credit card yeah no problem kitties I love this question. Here's the reality that you know there be a lot of folks it would say you just need to stay away from credit cards altogether. We had our friend Dave Ramsey on the program actually earlier this week and they would be one of those that would say never use a credit card.

Steve and I don't take that approach, but what we do say is only use credit cards for budgeted items and you have to know whether you're disciplined enough to even use them at all because some people having access to unsecured debt, meaning the ability to live beyond God's provision is a recipe for disaster. If that's you, and you know that you then you should stay away. I'd yell perhaps the first month you can't pay it off in full or if it happens two months in a row.

You cut it up and go to only debit or cash, but if you have the discipline to say I'm going to use a credit card for budget item budgeted items in many use the convenience that comes with being able to shop online or stored in my smart phone.

I'm going to make sure that that with a credit card.

I'm choosing one that has no fees, no annual fee and I'm getting maybe 2% cash back so there's a benefit to that. I think there are some upsides to credit cards but I think the key is Steve Cotter had that spending plan at the foundation of everything so you got it. If you don't have a spending plan today.

I would recommend you track your money for at least 60 days to see where it's going. What what recurring expenses you have or you get a bill in the mail.

What discretionary spending, like eating outdoor you know, clothes shopping, things that you know you don't get a bill for.

And then what nonrecurring expenses do you have like quarterly insurance payments are a semiannual ghetto homeowners Association something like that. Once you get it all in there and you massage the numbers and make sure that it balances then you ask yourself the hard questions. Does this reflect my values, my priorities if it's important to me to be a systematic giver in my doing that or do I need to make some changes in my saving for my short-term and long-term goals. But then at the end of the day. The budget is set and then how you administer that budget meeting the control of the flow of money in and out, plus the way in which you actually pay for things, credit card, debit card cash. I think that really is a nonissue because it's all in line with the budget that's been established in advance that the last thing 06 were about a time here. Katie is our money wise app could be a great help for you here. It's our brand-new app it's based on a digital envelope system.

You cannot only build your spending plan, but you could connect your debit cards, credit card, savings, checking, and use that to download all the transactions to make sure you stay on budget and you stay online are a producer will get your information will give you six months free as a pro user so you can get all that worked out just as our way of saying thanks for calling today. We will and D Katie God bless you stay on the line will get your contact information. Thank you very very much and Rob, thank you. Hope you and your family have a great weekend. Sir will come back and talk on Monday I write dark secret money wise live is a partnership between Moody radio and money wise media and you're in there as well. Thank you for your prayers and your generous financial support that helps us come to you each day on this radio station and radio network. If you'd like to send an email to Rob it's questions@moneywise.org have a great weekend. Join us again on Monday