Why Christians Don’t Give More

US Christians if they'd like to give more. The answer is always yes. So why don't I am Rob West Western civilizations concept of charity is actually based on Christian values. It didn't exist before the spread of the gospel what's holding us back today talk about that with Ron blue and Johnny are questions of 800-525-7000 800-525-7000.

This is moneywise live wisdom for your financial decisions. Friend and mentor Ron delighted to have you back in the studio that are good for you again Robin delighted to be here around you've often written and talked about obstacles to getting more that folks may not realize they can overcome today will talk about three of them. But first tell us that you came to this realization that people often have more giving power than they even realize you. Rob God showed me something with the very first client that I had and it has proven true to now for 40 some years to be consistent when I first set up shop as a financial planner. My first paying client was a man who in his wife. He said that their goal was to give $1 million and to retire as soon as possible in order to give their time to the mission field. Okay and they wanted to maintain their lifestyle, which was reasonable, it was not real fancy.

It was just a reasonable lifestyle they were giving 15% asking what is net worth was and he said about $350,000 and was income was and he said about $85,000 per year and that was in the early 1980s, and he and his wife wanted to give $1 million, which seems out of reach.

So that, were they able to do that yes they were.

I as I gathered their information. When I found was that they had a lot more assess what they thought okay which is pretty typical. Most people know what their income is, but they don't really know all that they own in all that they owe and I was able to call. He and his wife and say you better sit down because I think you can give million dollars and I showed him that if they gave away some of their property they would lower their taxes without lowering cash and lowering their taxes increased their cash that allow them to give more and when you ran out over five years. They were able to name, then that's important. They took a long range view yes and you ran out over five years. They were able to get 200000 Year Way and they still maintain her lifestyle and is a matter fact or net worth remain the same. Also pretty much what that really highlights these one of the three reasons were going to mention the Christians don't give more and that is that people aren't aware of what they have is you said they were even aware of the giving potential.

They had through their balance sheet.

Because of their assets, but the second is they're not aware of the wings to give talk about that well.

Many times they can your property. For example, that was one of the things they could've given stock that had appreciated in value in both of those things aboard the capital gains tax is probably one of the biggest mistakes that I think people make in their giving. They don't realize that they can give off their balance sheet certain things and is not limited to, real estate, and I have in stock and it could even be a business interest is somebody could give.

That's great. And we know that giving fund through a friend to the National Christian foundation what's otherwise known as a donor advised fund is one of the most powerful tools in all of this to accomplish what you're describing. Then there's the third reason though Ron and that is that they didn't have a plan and that's what you gave them that's exactly right.

And that's people. We found over time. Rob that people could give five times more than what they thought just by having a plan to give the most people are reactive vendor giving rather than proactive giving so they don't plan to given counseling today don't give what they could get in.

This is significant. Ron, you said in your experience, you found that folks throw plan could give five times what they were planning to give prior to the giving and that really is a game changer. Well folks, if you want a plan that can help you do what Ron is describing so you understand what you have and how you can give it away what the plan looks like to support it. Perhaps a certified kingdom advisor is what you need. You can find theck@moneywise.org just click the button that says find a CK a Ron really great to have you.

Thanks for stopping by. Thanks, Rob teacher and author Ron blue was with us today. Your calls or next.

800-525-7000 800-525-7000. This is moneywise live for God's word informs every financial decision much more just around the corner.

Wisdom for your financial decisions. Rob West euros take your calls and questions today on anything financial we love to hear from you. 800-525-7000 800-525-7000. We got lines open. Let's have right to the phones. Houston, Texas.

Tina your first color today, go right ahead and find my mind, and 403B and I'm trying to be a bit late but I do and I Carol a brokerage account that's already open that I want account and then I have just a regular account. So my question is can be transferred into the lot is the kind of where the taxes are taken that share price to put it in that were not there open up an IRA for them. 2000.

That's in the 43B, 72,000 and separate ones that would like to be believed wanted 12,000 and like 12,998 and then the other. Very good. And that's not the Roth version of the 43B correct. I have opened up at the brokerage account when it is not the Roth with no very good yet so since you're no longer with the school. It probably makes sense to go and roll that out to a traditional IRA, you do have the ability to convert that to a Roth. I wouldn't recommend it if you're still working and you really don't get the added benefit of the years of tax-free compounding that you get in the Roth so probably best to leave that in a tax-deferred environment which means you will pay tax on it as it comes out because it went into the 43B pretax. So simply want to roll that over Tina to the new IRA you can have two accounts you have one Roth with the existing funds that you opened the brokerage firm and then you have the traditional IRA which will receive the rollover funds from both for the three B's putting it all together in one place and then you would manage it that way and then in retirement. Depending on the tax code, and whether you're still working and so forth.

You could decide you want to pull from the pretax money of the from the traditional IRA or do I want to pull from the Roth bucket then you have both options and then the key would be getting those invested in a way that makes sense for your goals and objectives you could do that kind of on your own with some high-quality mutual funds or index funds.

You could use what's called a Robo advisor solution where essentially it manages it for you using an algorithm that builds a low-cost indexed approach to investing or you could hire an advisor to ask you take a more proactive approach approach to managing those funds, but in any case, you would still have the two accounts.

The traditional and the Roth. Does that make sense. Good yes I think that's your next step you just contact the plan administrator let them know once you open that new IRA you made the decision to manage it where they're going to be transferring it, you complete that paperwork and they'll get that rolled out so should be a fairly simple process.

Are you retiring are you to be working somewhere else just reach out with my chair last night, I would like to eventually get something part-time while I Sit with her very good and are you going to need to draw an income from either of these accounts or do you have your income covered with another solution well teacher retirement okay very good okay right now emergency.

Find like you recommend really gaining much interest do you reckon the online banking are what would you yes I do. Just because you're going to get a much better yield on your savings accounts of rent since Marcus right now, which is the retail operation Goldman Sachs their high yield savings. It's up to 1.7% and get to be continuing to have high-res rates at higher, and that's with no fees, no account maintenance fees and still all the protections of the brick-and-mortar bank, FDIC insurance, and so forth. So that's why I like them online banks because they're able to pass a lot of that savings on the form of no fees and higher yields on their savings in the bank products so you just said Marcus.com or capital one 360 or Ally Bank any of those three, I think would serve you well and you can link that right up to your checking account electronically so you're never more than a couple of days away from the money through electronic ACH transfer.

Thank you God bless you.

Thanks for going today.

800-525-7000 got a few lines open for you and send Miami Mark thinks were going to answer.

I all my call is question. All I want all my lot in one of the one of the click something while you quite like that a credit got up and thought a lot about credit card and you don't want to know about credit got that okay I owe and be better all you want but would like for you to get the credit card number, credit card, and later the credit card on that. My name… Called and I would like to know if I can cancel that credit card without it affecting my credit my credit yeah yeah that's really interesting. I mean, the key is, I would. I would call them right away and just let them know what happened there can have an online recording of that call because you would've had to authorize them verbally to pull your credit and they wouldn't have extended the credit card without pulling your credit the process of you authorizing a lender to pull your credit for the purposes of evaluating your credit worthiness is what's going to put a hard inquiry on your credit file which would cause your credit score to drop temporarily. It's just a function of the algorithm that determines what your score is.

It has a part of it that factors in the fact that you're out there looking for new credit.

The credit card itself is not to be a problem. It's actually can increase your overall credit limit and closing it is good to have a negligible impact that you will recover in a short period of time. What's the bigger issue is if you didn't authorize this than others will break down and going on there that you need to call attention to because they need to hopefully correct this with the credit reporting agencies and and cancel this in such a way that it was never issued to you. So I would not call them back right away and just let them know that you believe the credit card was extended to you without your approval and have them do the research on what transpired during that call again. There should be a recording of that information that they can reference and see if they can rectify that, both in terms of closing it out in such a way that it appears like it was never issued and then clearing that up to credit bureaus that make sense. You have a little trouble hearing your mark, but I think that will be your next step. If you have trouble once you contact them and you have a question feel free to give us a call back. You can also report this to the Federal Trade Commission so hopefully was just a simple error that can be resolved with Doug when reach out right away. Checking with Mrs. moneywise live biblical financial. This is more of your 525-7000 right back is five euros to your calls and questions today to hear from you back the phones to see Linda go right ahead on my own and yeah we can look at tax document showing that we did get out and go yeah.

Generally speaking, we would you would hear that you need to keep documents for at least three years. I would say a minimum of five years for general you'd want to keep donor records for a minimum of five years in order to comply with the IRS requirements, but yet they're not totally clear about you know how long you are required to keep them. I think it's just a good practice to hang onto those for at least five years and if you can store them securely.

That way you can always back go back and justify what you've done, but I feel like you know that probably is a reasonable time. For you to do so like anything like 2019 that yes that's right.

And I think that's the key is that if whatever documentation you have. I would certainly hang onto that if you are lacking some documentation and I don't know that for years ago I would go out and try to re-create that but I think whatever you've got. I would keep in a secure place. Hopefully have a fireproof safe.

You can keep these records for the appropriate amount of time and that way if you ever needed to defend what you've done in terms of your tax reporting that you would have the documentation to do so.

Thank you for calling Linda God bless you at the Charleston, South Carolina Jeff, thanks for going to head for you.

Glad Jeff got about half $1 million sitting in Cary's life actually in the market 6040.Jan earning a whole lot of course right now or whites retired up about to retire, trying to decide what to do with those funds as we own the retirement are our pensions and Social Security more than cover our expenses so I'm just trying to figure out what to do without very good. Both of us very conservative so Jeffrey, do you have somebody managing this are you handling this money yourself. No manager is okay and roughly how much do you have in this fully or portfolios about 500,000.

Okay, what would you say the breakdown is Jeff roughly between stocks and bonds, 6040 and 60 in bonds for sex okay. Yeah. And what kind of downside of you experienced this year in the market this year will later when we were down 18% now down about this week and you're not planning on touching this money time soon. It's going to be free to continue to grow as a right yeah this is intended to go enter okay yeah I think the one thing you could do given that you're trying to be more conservative with this would be to move toward you know, perhaps, as the market recovers over the balance of this year and into next year or if we were to see a recovery you know even that's temporary in the next couple of months, perhaps getting to what is a more palatable allocation for the longer term I think would be important. So if you guys feel like you know even at 6040. Given that 18% downside you experienced you'd like to limit that downside exposure.

You might want to move to more about 7030 type approach again as the portfolio recovers and then that put you in a position where you know we were to go through this again you feel better about how your position but you can still keep the long term in mind, because, given that your income is covered in this is money that can grow to be given away or left as an inheritance you want to outpace inflation because you're losing purchasing power. This money all the time so you wanted to grow but you also don't want to open those quarterlies for monthly statements and have some consternation. As a result of the volatility and so I think you know moving toward that 7030 model in concert with your conversations with your advisor probably would make some sense and give you a little bit more peace of mind. How does that sound 571 relative age. What would you think we should be yeah so I do know we typically use the hundred and 10 minus your age is because people are living longer, so at 65 to 45% allocation to stocks and 70 be a 40% allocation to stocks, which is where you are now the question is do you want to be on the more conservative end of that rule of thumb, it sounds like perhaps you do think, especially given the fact that you know your income is covered gives you an opportunity to just posture yourself in a little bit more conservative, which is gonna limit your downside even more. This is been unusual. Because as the interest rates been rising, the bond prices and falling with the stocks which just got was impacting it from both sides. So I think you're probably in a good range right now. You're certainly not. You know, out of bounds by any means, but I think getting a little bit more conservative moving forward probably serve you well.

Given the fact that you want to be conservative so that probably the place that I would go but I talk to your advisor about it is you make that final decision elicit all the best, you guys Jeff and this next season as you think about retirement and what God has for you next. Frankly, that's a great question coming up to your question 800-525-7000 gives a call moneywise moneywise line for your financial decisions.

100 525-7000 call right back to the phone.

Missing the playing field a little like a red I call my life insurance on my tax-free if I get that money and put it in the bank. If I decide what to delete that tax ID end of the year. I don't know that that's correct as the beneficiary of a life insurance policy.

Those life insurance proceeds Agnes are not included in your gross income. You don't have to report them and it is nontaxable.

I don't want to make my own. My will and jump from the front. I don't know how much I think that option on monthly payment to me like running so I cannot option. Yes, you need to check with them as to the options that are making available to you. You likely have the option to receive that as a monthly benefit for roll it out as a lump sum to an IRA and at that point you just need to go and open that IRA. You decide where you want that to be housed where your custodian will be when the largely that'll be driven by do you want to have an advisor is managing energy want to manage that and select the investments yourself to one satire is open and you would just have them issue that a rollover from the pension into the IRA, which is not a taxable event until you begin taking a portion of it out. You can also asked them about the option to receive a monthly check, but I'd probably opt for and I don't know all the details of what they would give you for either so you want to explore that and perhaps have an advisor look at that with you but I would you look at the option of rolling that over as a lump sum seal access to the full amount as opposed to just taking the monthly check. Although both options should be available to you.

Thank you so much. Okay. All right. Agnes God bless you. We appreciate your call today.

Let said that I will stay in Illinois W NBI Hoffman estate Kathy Goren had taken my call pretty good credit score 890 how to think about my credit now so you're looking for an increase in your credit limit for what type of credit, credit limit increase for credit cards or are you looking for some other type of loan LLC soon going to research what it ain't that with me. She was having a higher credit limit is to start yeah yeah the challenge is that the type of debt that you would be using and if it's a brand-new business.

You can have trouble getting some sort of line of credit to be able to use for the business exclusively if you're looking at relying on credit cards, you know, it's one thing to just fund the monthly cash flow needs.

As the build business grows and you're trying to build equipment or their take on equipment or other things you need for the business but you got a good steady income coming in. The challenge is no business is often that a new take longer than you anticipated to get up and running and can be more costly and so that's where I would just be very careful. But in terms of your business credit card or even a personal credit card, you could simply call and ask for a credit limit increase my concern though Kathy is just making sure use that really responsibly.

I thank you, Sarah help yeah sure go to your bike. I opening one for my niece old and that can I take it out. Maybe after two years the name of the eighth of stocks and bonds Fokker yes you can. So it would have to come out and in go into a similar titled account so essentially it would be a custodial account that you would open for her, it would. You would be the one opening the account, but in custody for her and then at the age of majority, that becomes her money. So if you opened a similar account with the same title custodial account for your niece and let's say a brokerage firm. Then you can essentially redeem the proceeds and then make a transfer into the other account that's like titled and then at that point you could do deployed and in stocks and bonds and welcome Kathy, thank you, thank you so much we appreciate your call today 800-525-7000 to Rome, Georgia Tim, your next of the program go answer the call. A question about a fixed index annuity for your program. Recommend them.

But this annuity is based on an index you get to choose from a mile from the company says that you don't get any downside can't lose money markets. You can course are based on whatever index what you're feeling though Matt yeah I think it's certainly a way to transfer the risk away from yourself to the insurance company and a lot of people do them because what you said the floor and on the downside is nice.

So what are you giving up all your giving up the upside, because you can get a portion of the upside based on how they calculate that you and I can get the full value of the increase of that index, which is in part how they mitigate the risk because they're using certain investment instruments to protect you from the downside so I think that the question is just in exchange for that downside.

Are you willing to give up some of the upside, and I think for most folks that are long-term investors there saying you listen I want to keep full access to my money because within annuity product. You have surrender charges and penalties if you need to tap the money and I'm willing to take the risk. On the downside to get the long term trend that I'm shooting for, which is you know the overall long-term performance of the stock market and whatever index is you're looking at, and I think you know for most folks.

I like that option better even though yes you have the ability to lose money you're getting the full value of the increase of the investments over time and still keeping access to your funds which I think is the real upside of staying out of an insurance product for your investing concern about five years I could withdraw up to 10%. That's it for year you're locking up her money and you got some fees and expenses built in the new got the fact that you're not realizing the full upside but for some folks who are really just real ultra concerned about the downside protection.

That's why these products are sold because there are a lot of folks that just gives them greater peace of mind. But for me I think if you got the right allocation, you got the right time horizon.

You know you're not overly anxious about this, you can kinda see the bigger picture. Even in a market like this where the markets down a thousand points in a given day you just kind of turn off the news and know that me I'm not in it for a week or a month or even a year a minute for five or 10 or 20 years.

In the long term trend is going to be up look historically and if I can do that get full benefit of that upside compounding overtime plus still have access to my funds than that's probably for most folks.

My recommendation to go that direction so that gives you some to think about as you ponder this one certainly not a right or wrong decision we make a decision that's most comfortable for you right here moneywise lively come back in her final segment more of your calls at 805 five 7000 W.

This is when we apply God's wisdom financial decisions.

Moneywise, lively apply God's wisdom to your financial decisions and choices back to the phones we go 800-525-7000 Tennessee Kathy, thanks for going to read you like steak or PLA.

I'm currently on her checking and savings account that we can transfer money from her savings account into checking to take care of retail 12 live 90 lowly savings account to a high-yield savings account that the company that I'm going to move it to think I already have an account there is going to make me primary in her secondary. I don't want to do that.

I wanted her to be the primary question. Is there any reason why I can't just put it in her name alone continued to transfer as needed into a checking account which needs to 90 from high-yielding happened yes well yeah, I think I'd be the only way you'd want to do it.

You don't want your name to be anywhere on the account so you would have the legal authority as the POA to manage their bank accounts or in this case your mom's accounts for her and so being able to execute documents and open and close and change accounts, but you don't want to be listed on there because then that becomes your impart an owner there and that's really not the objective here is what I kept saying I want her to be the primary term money and when she passed the wheel to take care of anything that sounds yes I think you're just initiating your opening an account in her name, but as the power of attorney you're the one executing the documents on her behalf, and now that's done every day and there's no reason why you can't do that. Okay Kathy thank you for calling.

We appreciated let's see Illinois remainder next on the program. Go ahead. Thank you for all you do an old educational IRA at about 22 years old and my and I are both on and education.

He went into the military you want to buy and help her time homeowner and I was reading something that you that first-time homeowner up to 10,000, and I think one time and because my name is on it. I was wondering if I can actually get him back in court, which is a little (10,000.

I don't know how that worked and would that be a one time 10,000 for me as well that work. Yeah that's a good question. So it was it's a custodial account. Essentially this education IRA for his benefit.

So you'd only be able to withdraw the 10,000 for one of you and essentially oriented for him. Any comes out. Penalty free.

You would still owe the taxes on it, but it would come out.

Penalty free up to 10,000 for a first time home purchase, which would be able to do that twice. Okay, okay, what about it that counts.

Second, now now his IRAs in his name only seven IRAs for one individual can be joint okay okay yeah all the best and make sure you set aside the taxes on that, even though there's not a penalty, is that money comes out, but all the best.

Intimacy looks toward buying his first home. That's very exciting I'm sure he's thrilled to be able to do that and I'm glad to hear he was able to get through college and still have some money left over, which is the great thing is well. We appreciate your call. I would stay there in Illinois, Chicago, Addie, go right ahead and make it really you brought it one, OR yes well.

The key here is you know I like the idea. If you have extra cards for you to go ahead and start closing them. I would just do it over time.

So how many cards do you have that you're looking to close their door really are you looking to seek new credit in the next six months buying a car or house or something now like that you don't want to do you you you said you do carry a balance on some of these are no non-now like I balance every month and no my and you know you make your credit card you know what like an extreme American sure sure the key here is because you're paying off everything at the end of the month matter which card you use and you're probably only using one or two of them closing these accounts you have. The biggest issue would be your credit utilization ratio, which means that as the accounts get closed. That limit comes out of your total available limit, which then pushes the available limit down and if you are carrying balances. Those balances are a larger percentage of the limit that you have and so that credit utilization ratio when it trips above 30% really gonna start to pull your score down.

That's really not an issue here. So really it's just going to create change your credit mix and maybe your credit history because some of those perhaps older cards are now out of the equation, but any decline Addie for you closing these is going to be minor edits can be temporary so you if you have an 800 credit score could you dip down to 780 sure, but the reality is if you're not out there get Ray to buy a house or car doesn't really matter because this is going to come back here because you're managing your money responsibly and again the main issue which is credit utilization isn't the factor for you.

So what I would typically recommend with five cards as you do three of them now and in six months you do the other two given that you're not out there seeking credit if you wanted to do all five. Now you could, I'd probably spread it out but I wouldn't be concerned about the impact any impact is gonna be small and it's going to come back over time will just will simplify your financial life you won't have to keep up with his many accounts and it's five less accounts that could be compromised and that you would have to deal with somebody fraudulently charging against them or something like that. So I buy like the idea of you getting rid of them. We appreciate your call Addie. Thanks so much to Akron, Ohio W CRF Charlotte your next on the program. Go ahead, thank you so much for taking my call. I really appreciate it had a question and I hear bold I went for a bit but now I'm working and free, but I guess I needed advice on my age going into a 401(k) like that, but what would be the wife.

Today, climate, light weight, you invest and save for retirement and future. While I'm also you know getting in doing all that yes do you have a company-sponsored retirement plan at work. Charlotte okay and are you contributing to a currently I am contributing to that old IRA and from a different company plan needed beneficiary account sure okay what percent of your income. Are you putting into your 401(k) or right now putting 10% okay very good so are you looking to put more aside because you feel like you're behind or what is it you're really trying to accomplish. I know earlier, up until this point I and I had to pull out a lot money that I had to kind of live on when I was unemployed and homeless for a while so I'm talking and I get down here have blood work. I just wanted to so I think two things. One is I try to bump that the contribution up to as much as you can so you can get. It was much going into that on a tax-deferred basis as possible so I'd bump that up to 15% or you can even ask what percent do I need to put in for me to build a max out my annual 401(k) contribution. I like that a lot.

And then secondly take another look at the investment options in there and just make sure you're allocated properly based on your age and risk tolerance, and if you just stay at that putting in the maximum every year with the you know a good mix of investments and you do that until you retire. I think that will certainly put you in a much better position moving forward. If you max it out you had the ability to do even more, you could look at your adding to a Roth IRA. In addition to that, you can put in 7000 this year. As someone who is over the age of 50. So I think both of those would be great and would get the more money working for your future.

Hopefully that helps you Charlotte. We appreciate your call today were just about out of time. Nancy and Spokane were not get to your call but I do see your question here, your husband passed away. You have a trust that you wanted to redo before he died.

You will never got to it. You're wondering if you can break that trust. You know you really need to check with your state attorney but just generally speaking, no living or revocable trust become your revocable. Upon the death of the trust maker or makers also can't be altered in any way.

Once the successor trustee takes over management. If it was your revocable then that would be the case right so obviously this stuff gets very complicated so I would check with the state attorney just to clarify all of this