Rob West Your investments can do more than grow your portfolio; they can also create opportunities for generosity. Hi, I'm Rob West. As the end of the year approaches, you may be thinking about charitable giving. But have you considered giving directly from your investments? Today, Brian Mumbert joins us to explore how generosity can be part of your investment strategy. And then it's on to your calls at 800-525-7000. This is Faith and Finance on American Family Radio, biblical wisdom for your financial decisions.
Well, it's always a pleasure to welcome my friend Brian Mumbert back to the program. Brian is president and CEO of Timothy Plan, a pioneer in biblically responsible investing and an underwriter of this program. With nearly two decades of experience at the firm, he now leads its efforts to equip Christians to invest with both financial wisdom and biblical integrity. Brian, great to have you back.
Brian Mumbert Great to be here, Rob, thank you.
Rob West Brian, today we're exploring how to give from our investment gains. But before we get into the details, why should generosity be part of our approach to investing in the first place?
Brian Mumbert Well, Rob, as you know, Scripture reminds us that God owns everything and that we're stewards of all He entrusts to us. You know, in 1 Peter 4:10, "As each has received a gift, use it to serve one another, as good stewards of God's grace." And we know in faith-based investing, we look to invest as stewards of what God has entrusted us. We should hold what God has given us with an open hand and look for opportunities to use it for kingdom purposes.
Rob West Mm, yeah, I think that's right. Timothy Plan has put this into practice. I know you give a portion of your revenue to support ministry. What does that look like?
Brian Mumbert You know, from our early days in 1994, Timothy Plan wanted to honor God, not only in the way we invest, but also in the way we support ministries on the other sides of the screens that we do. And so we've supported organizations such as pregnancy centers, faith-based and family-friendly media, and efforts to develop biblical entrepreneurs. In fact, just this past week, we sponsored and attended a Walk for Life and a benefit dinner for two of the largest crisis pregnancy centers in Central Florida.
Rob West Cool.
Brian Mumbert And, uh, as our founder Art Ally always quotes from the Christian industrialist R.G. LeTourneau, who famously gave away 90% of his income—
Rob West Yeah.
Brian Mumbert —he said, "I shovel out the money, and God shovels it back, but God has a bigger shovel."
Rob West I love that. Brian, let's turn to the practical side. What are some of the ways investors can use their investments to support the causes and ministries they care about?
Brian Mumbert There's some really neat ways you can do this, Rob. I mean, you can donate appreciated stocks, mutual funds, or ETFs directly to a qualified charity rather than selling them first. That could potentially help avoid some capital gains tax. And if you're over 70 and a half, you can make a qualified charitable distribution, or QCD, directly from your traditional IRA to an eligible charity. And this QCD can also count towards your required minimum distribution, if you're subject to one.
Rob West Yeah. What a great way to give from your IRA. A lot of people don't realize that's an option. I'm glad you highlighted that. Brian, for someone hoping to give before year-end, what steps should they take now rather than waiting until December?
Brian Mumbert Rob, you really got to start early, especially if you're transferring appreciated securities rather than simply writing a check. And as with anything this important, you really want to work with a trusted CKA financial advisor to really make this plan work, because they understand how this all goes, and make sure the charity can receive this type of asset before you try to give it. I mean, sometimes we're very noble in our intentions, but we do things without checking first. And the tax benefits are helpful, but we really ought to remember the reason that we're giving this.
Rob West Yeah, that's right. Brian, before we let you go, I know Timothy Plan launched three new ETFs earlier this year. Tell us about those.
Brian Mumbert Yeah, Rob, we launched a pair of free cash flow ETFs, uh, tickers TPFC and TPFG. Uh, one focused on value, the other on growth. These ETFs look not only at trailing free cash flow, but also forward free cash flow, uh, which is typically an indicator of a very high-quality company. And then we launched, uh, fixed income ETF, TPFI, our very first actively managed ETF, um, that sits in the core plus fixed income category. And all three of these, of course, incorporate Timothy Plan's biblically responsible faith-based screening methodology.
Rob West Mm. Yeah. Folks, our investments may grow in value over time, but their greatest significance is in how we use them to love God and serve others. And Brian, I appreciate these reminders today.
Brian Mumbert Thanks for having me, Rob.
Rob West That's Brian Mumbert, president and CEO of Timothy Plan and underwriter of this program. Since 1994, Timothy Plan has been a pioneer in faith-based investing, helping Christians align their investment decisions with their biblical convictions. Learn about these ETFs and much more at timothyplan.com. That's timothyplan.com. We'll be right back.
SEGMENT 2
Rob West Grateful to have you with us today on Faith and Finance here on American Family Radio. I'm Rob West. We're taking your questions today; that means we need your phone calls. Here's the number: 800-525-7000. That's 800-525-7000. We would love to hear from you and help you process what you're considering in your financial life today. Again, that number: 800-525-7000.
In the news today, Medicare open enrollment is underway, and a new analysis suggests that people with Medicare Part D prescription drug coverage have a particularly good reason to shop around this year. Now, Part D helps cover the cost of prescription drugs. It can be purchased as a standalone drug program for people with original Medicare, while many Medicare Advantage plans include Part D coverage as part of your plan. Medigap policies supplement original Medicare, but generally don't include prescription drug coverage. Open enrollment runs from October 15th through December 7th, with coverage choices taking effect January 1st.
Now, here's the data. According to KFF, which is an independent health policy research organization, the average monthly premium for standalone Part D plans would rise from about $34 this year to $51 in 2027—that's a 50% increase if current enrollees simply stay in their existing plans. That doesn't mean every Part D enrollee will see that 50% increase. KFF estimates 76% of standalone plan enrollees who don't receive the low-income subsidy will pay a higher premium if they keep their current plan; about 2.4 million could see their monthly premium rise by more than $50—and again, that's monthly.
Premiums aren't the only thing changing. The standard Part D deductible rises from $615 in 2026 to $700 in 2027, and plans can also change formularies, cost-sharing requirements, and pharmacy networks.
Here's the good news: open enrollment gives you an opportunity to compare plans and possibly make a switch. Medicare's Plan Compare tool lets you enter your prescriptions and your pharmacies, and then you can compare estimated costs among available 2027 plans. You're just going to want to do a search for "Medicare's Plan Compare tool" to do that analysis.
What's the stewardship lesson? Well, don't put your Medicare on autopilot. Remember Proverbs 21: "The plans of the diligent lead surely to abundance." So, spend a little time reviewing your coverage before December 7th when open enrollment closes for the year. Even if you ultimately keep the same plan, you'll know you made that decision deliberately rather than simply accepting whatever costs arrive in January. I hope that's a helpful reminder to you today.
All right, we're ready to dive in. We've got time for your questions today before Bob Doll stops by in our final segment. Anything on your mind financially, call 800-525-7000 right now. Let's begin today in New York. Chloe, go right ahead.
Chloe Thank you for taking my call. I am 72 years old, and I am wondering what is the best way to divide my legacy—my funds legacy. I have two siblings; one has one son, and the other one has three kids. Do I split equally between my brother and my sister, or do I do equally among my three nieces and one nephew? That's the question. What is the wisdom behind where or to whom you are leaving your legacy? On Friday, you spoke about the value of the person to whom you are leaving your legacy, but this is more like how are you going to be fair about it?
Rob West It's a great question. When we're talking about the next steward, it's a really important conversation: Is the next steward chosen and prepared? There are a few principles we can apply here. One is that "fair" doesn't always mean "equal." The decision isn't necessarily whether every niece and nephew should receive the same dollar amount, but whether your distribution reflects biblical stewardship, wisdom, love, and intentionality.
You could start by asking: "What do I want this inheritance to accomplish in the lives of the people receiving it?" You could decide to divide your estate equally among the four individuals or equally between the two family branches (50% per family, where those with more children end up receiving less on a per-person basis). Neither approach is automatically more biblical.
One of the big ideas we like to discuss is not only intentionality in selecting the steward, but also what you are doing to pass spiritual and character capital before financial capital. What does it look like to allow them to demonstrate good stewardship before they receive the inheritance after you're gone? What would it look like for them to give part of it right now with your oversight, or spend part of it? It's a little easier with children versus nieces and nephews, but doing your giving while you're living so you know where it's going—as Ron Blue talks about—is a big idea. It allows you to be involved so you're shepherding and shaping along the way.
We also want to make sure the inheritance is a blessing and not a burden, which comes down to each recipient's maturity, financial responsibility, circumstances, and ability to manage an inheritance wisely.
Ron Blue, author of Splitting Heirs, recommends asking three questions:
1. What's the worst thing that could happen if I leave this person an inheritance?
2. How serious would that outcome be?
3. How likely is it?
That helps you determine whether equal distributions, different amounts, or additional safeguards would best serve each recipient. One niece may be a single parent or working in ministry, while another may be well-established with a thriving income. You can look at each situation and decide how to leave the money according to need, financial maturity, and spiritual maturity. Or, you may have the conviction to bless them equally, communicating that ahead of time alongside your desires for how they view it as God's money, your hopes for their giving, and their contentment.
Does any of that make sense or help?
Chloe Yes, it makes very good sense and it's helpful. But it's a very challenging task, I find.
Rob West You need wisdom from above. James 1:5 notes that if we lack wisdom, we should ask God, who gives generously. Make this a matter of prayer.
I'm going to send you two books: Splitting Heirs by Ron Blue, and our new field guide, How to Prepare the Next Steward. Work through these, and see if the Lord makes it clear to you. Hang on the line, and we'll get your information.
SEGMENT 3
Rob West Is the next steward chosen and prepared? A really key question as we think about managing God's money. It's not just about what God has entrusted to us right now; it's about who is ultimately going to be the next steward of what belongs to God. By the way, we will be heading to the phones here in just a moment. We have some lines open: 800-525-7000. Do you have a financial question today on any topic? 800-525-7000.
Chloe called before the break; she's trying to get her house in order in terms of her estate plan. She's got two siblings, one with one child, one with three. They're all in their 20s and 30s—her nieces and nephews—and she's just wondering, how do I divide the estate?
And, you know, just to make things really clear, I think one idea is just to say, "Okay, first of all, we need to recognize that, you know, God loves us equally, but He treats us uniquely." And so we don't need to feel like we have to divide everything a certain way just because one sibling has one child and the other has three.
So, we think about them individually: What are their needs? Are they financially responsible? Where are they headed in terms of their own walk with the Lord, and how might this inheritance bless them?
And then perhaps a couple of options would be:
• Option 1: Equal shares. We divide the estate four ways, giving each niece or nephew 25%. It's simple, it's straightforward.
• Option 2: By family branch. 50% to the sibling's only child and divide the other 50% among the three of the other sibling—a little more than 16% each. It treats the two family branches equally.
• Option 3 though is what I'm getting at here, which is where it's based on individual circumstances, considering financial needs, disabilities, their spiritual trajectory, other circumstances. Again, "fair" doesn't always mean "equal." You could ask: Are they financially secure? Do you want to provide for them directly?
And really think about stewardship along the way, and what could be done now in both your communication with them about your plan once you arrive at it, as well as getting them involved in stewarding some of the resources now, perhaps through giving. So maybe take a portion of what you're ultimately going to give them that you don't believe you need now because you've defined enough, put it into a donor-advised fund—one for each of the four—and get involved in helping them give it away. What a beautiful way for you to help them prepare to be stewards of what they will ultimately receive down the road.
So, hopefully, that gives you a few things to think about, Chloe. And again, our new field guide, which is now out and available, could be a great way for you to lean into this and get some further education. We're going to send one to Chloe, but if you'd like a copy, just head to faithfi.com/shop, and you can pick up one today.
All right, we're taking your questions today: 800-525-7000. Let's go to Arkansas. Teresa, how can I help?
Teresa Yes, I was wanting to find out if wills expire. I know trusts are best, but and what if it's left as it is? Here's the background: I've been married for 37 years, and shortly after my husband and I were married, he and a family member informed me that they were not going to put my name on the house. Now, later on, my name was put on a piece of property that's connected with the house.
And so, but the will stated—this is probably 30 more or less years old—that our kids, that I would get everything first, and then our kids, if something happened to both of us, would be taken care of by my parents. Well, my kids are adults, and my parents are deceased. But that's how the will still reads.
Rob West Okay. Well, let's deal with both of these issues separately.
So, no, wills don't generally expire simply because they're old. A properly executed will can remain valid legally for decades, provided it's not been revoked or replaced.
However, just because a will is still valid doesn't mean it reflects your wishes as they stand today, especially as circumstances change. So, I think if it's quite old and your children are now adults, then I would absolutely have it reviewed. You're going to want to look at whether you have different intentions now, you're going to want to look at the executor that was originally named—make sure that's still the best choice—look at assets, family relationships, financial circumstances. All of those may change, and you'd want to verify that the beneficiaries on other accounts, which are outside the will and inheritance instructions, still reflect your wishes.
So, generally, you want to look at that every, let's say, 3 to 5 years or following a major life change. So I think at the very least, taking a fresh look at that and updating it would be a good idea.
Tell me more about this idea that your name is not on the house, but it's on a property out in front. I mean, that's potentially more important than the age of the will. The will generally controls only assets that are legally part of the deceased person's probate estate. So if your name is not on the deed to the house, the will generally can't transfer ownership of that house unless you have some other legally recognized ownership interest, which could, depending on the state, in part, you know, that it's owned by a spouse and so, you know, that could transfer to you unless it's, you know, co-owned with another party. But tell me more about who legally owns the house.
Teresa Well, the house is in my husband's name and the lot that it's on, and then the lot in front is actually where the driveway is. They just felt more comfortable with me, shall I say, after we've been married a while, and they simply put my name on the lot that was deeded over to us. So, both our names are on that lot.
Rob West Who is "they"? The attorney?
Teresa His parents.
Rob West I see. Okay. All right.
Teresa Yeah, I call it marital politics.
Rob West Okay.
Teresa But and I was just naive and assumed that the will would take care of everything, so I didn't really argue with it, you know, I didn't understand if that would make any difference.
Rob West Yes. And and would you have you revisited that over time? Have you all had conversations about the status of that? Because this is not a matter of—this is not up to his parents to become one flesh when we—okay. And so why, you know, have you broached the subject of adding your name to this deed right now?
Teresa Yes, somewhat, and it's not happened yet.
Rob West Okay.
Teresa I don't think it's going to.
Rob West Okay.
Teresa But.
Rob West Well, you don't automatically become the outright owner when he passes away. A lot of that's going to have to do with Arkansas state law. Let's talk a bit more off the air, Teresa. I really appreciate your call. We'll be right back.
SEGMENT 4
Rob West Great to have you with us today on Faith and Finance here on American Family Radio. Coming up in the next segment, Bob Doll stops by. We'll get to Bob's take on what's moving the markets, which are starting off really strong this morning. The Dow Jones up 550 points, a little more than 1%, the S&P 500 up about the same, Nasdaq leading the way up 1 and 1/4%. Oil prices are tumbling here before the midterms, stocks like that, tech shares are rebounding. Obviously, all eyes focused on the midterms tomorrow, but the market responding pretty favorably ahead of all of that. We'll get Bob Doll's take on it in the next segment.
We do have room for maybe one or two more phone calls in addition to those holding. So if you've got a financial question today, call right now: 800-525-7000. That's 800-525-7000.
Let's go to Wyoming. Russ, go ahead.
Russ Hey Rob, happy Thanksgiving month. We have...
Rob West Hey, same to you, my friend. Thanks.
Russ Hey, my question for you today is this. I feel like it's a hard one. I'm in leadership at an independent Bible church, and we have two paid pastors, and one of them is on one of the healthcare Christian healthcare ministries for insurance and it's worked out well. But the other one has a number of pre-existing conditions. So, they used to be on insurance after the Obamacare thing skyrocketed, so they went to Obamacare. Now, Obamacare—their Obamacare they're on is going up. They just got word, $600 a month starting in January. We don't know what else to do. We've been doing homework. Are there any other options that you know of?
Rob West Yeah. Well, yeah, it's challenging. Obviously, the marketplace can't deny you coverage, but they can charge the higher premiums, and that's what you're experiencing, and they could also exclude treatment because of pre-existing conditions, but they're already on that plan. So, the second option would be a church-sponsored group insurance. Have you guys looked at that option?
Russ Well, that's what I was actually curious about. See, we are an independent Bible church. Are there ones that are available for—like, we're not part of the FPC or anything like that, we're just independent.
Rob West Yeah. Yes, absolutely. So, you know, that that certainly could be an option there as well. You know, with an independent church, you could look at, you know, I think church ministry health insurance programs. So, GuideStone would be a great one. You know, they specialize in, you know, financial services and benefits for pastors and churches, and my understanding is that independent non-denominational nature of the church still qualifies. You'd want to ask that question, but, you know, that could be a great option. Christian healthcare ministries, obviously, you know, you've got to talk through the pre-existing condition with them. Have you explored that option to see what would be possible there?
Russ Yeah, we actually have. That was one we were hoping for, that and Samaritans, and we tried like three, and we couldn't—yeah, none of the three could could help in this particular situation.
Rob West Okay. Yeah. All right. Yeah, I know normally, you know, after 90 days without testing or treatment, you know, they could bring it in, but, you know, but depending on the issue, obviously, in some cases that doesn't work. So, are you all willing to do, or are you able to do a church plan, you know, that would possibly cover him? I mean, I guess the second option would be, you know, maybe the church helps to pay the premiums. That may be one of the most practical solutions. And so, you know, if if you can't afford a traditional group health plan, you know, you could investigate a formal health reimbursement arrangement. And so that would allow, you know, as a small employer to reimburse employees tax-free for qualifying individual health insurance expenses, and so, you know, you could take a portion maybe of that increase and try to help offset it through a, you know, a properly established reimbursement arrangement. They have eligibility and tax rules, these arrangements, and they can affect subsidies if he's getting any through the marketplace, but I think this, you know, could be something you would want to take a look at, and probably get an independent health insurance agent who has some experience in this to kind of come in and help you look at what's possible here. I think, you know, with regard to the ACA, you know, the enhanced subsidies have expired at the end of 2025, but I would say before just accepting that $600 increase, just recheck projected 2027 household income and subsidy eligibility, compare all of the plans—bronze, silver, gold—before automatically renewing, and, you know, again, I think a licensed independent insurance broker could help compare not only the marketplace plans that are out there, but church-sponsored plans, and then maybe even advise you on kind of a reimbursement program that potentially could helps offset some of this. And I think between all of those options, you should be able to find a path forward here.
Russ Okay. Now, we'll look at that GuideStone, too. Where do you find an independent—like, is there a best place to find an independent broker?
Rob West Well, it's a good question and and there's not just kind of one place to go. I mean, I'd probably start in the church just to see if there's somebody who's a health insurance agent. You could call a certified Kingdom Advisor there in Wyoming and just ask for a referral. You know, there are some online searches that you could do, like the National Association of Benefits and Insurance Professionals, and you could do a zip code search, but basically what you're looking for is a broker who's independent, who specializes in small group health insurance. And if you don't have one in your church and, you know, there's a not a CKA in your area, then I'd probably go to an online search next.
Russ Okay. Well, that's more than I knew a minute ago. I really appreciate your help. I took a lot of notes.
Rob West Awesome. Well, yeah, I appreciate you, Russ, trying to look out for this employee. I know this can be disconcerting. I mean, that's a that's a huge jump, $7,200 a year. So, I think whatever you can do to try to help offset that. It's unfortunately a reality that a lot of folks are dealing with right now, but I love that you guys are leaning in. God bless you, my friend. Thanks for being on the program today.
Let's go to Ohio. David, go ahead.
David Good morning. How are you, Rob?
Rob West I'm doing great. Thanks for calling, sir.
David Good, good. Hey, I have a question about a 1031 exchange. So, I'm kind of in the middle of it right now, and I've done the—I sold the property already, and the money is with the qualified intermediary, and right now I'm still in my identification period of the 45 days, and I keep running into not really acceptable real estate. So, my question was, is there something else I could do to defer the tax gain without purchasing the real estate at this time?
Rob West Yeah. Yeah, not without a lot of complexity. Unfortunately, the IRS is pretty strict on that 45-day identification deadline. You can identify multiple replacement properties, so they'll generally allow you as an investor to identify up to three properties regardless of their value. Other rules may even allow you to do even more than three, and so that would allow you to, you know, have some potential properties that improve your chances of successfully completing the exchange. And so I think that's your best option. Beyond that, you know, maybe connecting with an advisor to look at something called a Delaware statutory trust, which, you know, acts as a replacement for the 1031 and allows you to purchase a fractional interest in a professionally managed investment real estate. The other is something called a qualified opportunity fund. Let's talk more offline.
SEGMENT 5
Rob West Well, big day tomorrow with the midterms. Ahead of all of that, the market, well, it's up, oil's coming down, tech's rebounding, the Dow Jones up 600 points, Nasdaq up—well, everything's up about 1%. Bob Doll is here, he's CEO and CIO at Crossmark Global Investments. Bob, why the move down on oil today?
Bob Doll Some rumors of maybe there's going to be a settlement.
Rob West And, yeah, have you heard those rumors before?
Bob Doll I have. It seems like it.
Rob West I laughed.
Bob Doll It seems so, too.
Rob West Yeah, whether they'll come to any kind of agreement is, obviously, in God's hands. But that's the—that's the noise today, which has gotten the market, having been oversold on the horrible, horrible day on Friday, it's—it's recovered, oh, depending on the stock in the industry, somewhere between a quarter and a third of what it lost on Friday.
Rob West Yeah, that would be quite a November surprise if the president pulled a deal out of that here on the heels of the—
Bob Doll Right, wouldn't it?
Rob West Unbelievable. Bob, obviously, a lot to come up tomorrow, do you trust the polls or not? I mean, I know you're still thinking at least one of these—either the House or the Senate—changes over to the Dems, right?
Bob Doll Yeah, the—the House, I think, will move from the Republicans to Democrats with high probability. I'm using a 90% probability. On the Senate, I think probably the same direction, less certain there. I'm using a 60% probability because a lot of the recent polls are moving in the Democrats' favor. A lot of that anti-Donald Trump vote.
Rob West Where do we go from here? I mean, obviously, tomorrow will come and go. We could end up with some gridlock. The president already saying I'm going to have that veto pen ready, and I may even need to pardon a few people, but, you know, does that—what happens to the market then?
Bob Doll Well, historically, the market has done very well post the midterm elections, as you know. We'll see if history repeats itself. It's often the case that during the midterm year before the midterm election, the market has some sort of a selling swoon so it can recover. So—so we'll see. Look, the election's important, don't get me wrong, but all the AI noise, and—and whether there is—whether there's some fire, where there's some smoke, a lot of that's dominating the market conversation, not so much the election, Rob.
Rob West Yeah. I know you had quite a bit of analysis in your market commentary this week on AI and just some of the volatility we've seen as of late. Give us the highlights.
Bob Doll Yeah, so I'd say that the—the questions that have to be asked are: one, our earnings expectations too high? As you know, Amazon and Google reported last week they were disappointing earnings, and the stocks got hit hard. Second question is, how are we going to finance all the AI capital expenditures? And most importantly, number three, how are these companies going to convert all the money they're spending in CapEx to cash, to free cash flow, which at the end of the day drives stocks? A lot of questions coming up about that. But interestingly, Rob, as you're—I'm sure aware, people aren't leaving technology and AI and exiting the market. They're re-earning that money elsewhere. For example, on Friday, when the market was very red, six of the 11 sectors were actually up on the day. There's a lot of rotation going on. That's an important point for investors.
Rob West Yeah, no doubt. I mean, Bob, should we use the B-word here: "bubble" for the entire tech sector?
Bob Doll Yeah, I mean, look, when—when stocks come down as much as they have, you have to look over your shoulder and say, "Yeah, I guess some sort of bubble formed." Now, this is nothing like the year 2000, the dot-com bubble when—when valuation levels were just crazy. Here they're far more sane, if I can use that word, Rob. So, uh, I think we'll have some turmoil, uh, some towing and froing, as I like to say, but I don't see huge downside in the technology sector.
Rob West Yeah. And despite, you know, what you said about the disappointments with Amazon and the like, overall, earnings are still coming in pretty good, right?
Bob Doll Yes, they are. Yes, they are. The—the target still is roughly a 30% gain, which is gargantuan in advance, and, uh, we're almost halfway through, and the 30% is still sticking.
Rob West Yeah, obviously, the Fed continues to be a big part of all of this, and you believe that we got a "skip," not a "hold" on the rate increases, right?
Bob Doll Correct. They—they obviously went a couple months ago, months ago last week, they had a meeting, they did not do anything. December, most are guessing we include that they'll probably raise rates again. The Fed's favorite indicator is the PCE, the personal consumption expenditure and the deflator, the inflation rate on that indicator, which came out last week, so shows inflation up 3.6% year-over-year. No, we're close to their two. They have more work to do.
Rob West Yeah, no doubt. Bob, what about bonds? Obviously, the 10-year continues to be kind of moving around, and what does all of that mean in terms of the current state of the bond market?
Bob Doll You know, the bond market is interesting, moving more with the AI trade than it is with oil, which it had been doing earlier. Uh, and so the days that the—you see the the technology stocks, AI get hit hard, that's usually a day when bonds do well, and—and vice versa. As—as we said, when—when the 10-year yield got up to 5.3% about a month ago, don't forget, you need a few bonds in your portfolio.
Rob West Ah, very good. Bob, we appreciate it as always, my friend.
Bob Doll All the best, bye-bye.
Rob West All right, bye-bye. That's Bob Doll, CEO and CIO at Crossmark Global Investments, you can learn more at crossmarkglobal.com. Sign up for his weekly investment commentary while you're there; it's free.
All right, let's try to round out the broadcast today. Steve has been waiting patiently in Texas. Go ahead, sir.
Steve Hello, I retired a couple years ago with a traditional 401(k), and when I was doing withdrawals, I had to take money out of all of my accounts in that were in there. And well, I recently transferred it to a traditional 401(k), and now I can pick where to withdraw my monthly expenses from. So I was wondering if you had any advice. I have like 60 stocks, 30 bond, 10 money market. Should I just withdraw from money market every month and then rebalance it a few times a year, or should I withdraw from funds that are doing really well every month?
Rob West Yeah, that's a great question. You're right, you do have a bit more flexibility now as you think about, you know, how you pull from these investments and what to draw from first. The general approach is this: first, you start with money market, the cash. You use that to provide your monthly retirement income, and you typically want to keep 12 to 12 months, in some cases even more, of planned withdrawals in cash or short-term investments, and that reduces the likelihood of having to sell stocks during a market downturn. Second would be the bonds. Bonds, you know, obviously can provide another source of funds when, you know, cash needs are replenishing, and if stocks have declined significantly, you may be able to use bonds rather than selling depressed stock investments, although they can, of course, decline in value as well. And then third, the stocks themselves, because of the long-term growth potential. I mean, we have—we need this money to last another three or more decades here. So, I think, you know, this isn't a rigid rule that cash always has to be exhausted first, but I think, you know, that is generally the, you know, the approach most people take. But give me your thoughts. What are you considering here?
Steve Yeah, I was—I think that makes sense, I just didn't know if I as my, uh, balances kind of tweaks over the year, I didn't know when it was a good time to look at that and replenish that cash, um, part of my portfolio. Yeah. You have a couple times a year or?
Rob West Yeah. So I would say, you know, you want to review quarterly and replenish annually is typically the way you go. So you establish a cash target, you know, again, 12 to 24 months of planned withdrawals. Um, so if you were taking 3,000 a month, your target could be, you know, somewhere between 35 and 70,000. And then establish a minimum cash balance. So if your cash falls below 12 months, you could consider replenishing it; don't wait till it's completely depleted. But then, you know, you would want to replenish from the investments that are overweight. So if stocks have appreciated and are up to 65% of your 60% target, then I'd sell some of the stocks to replenish the cash. If stocks have declined, that's when you'd probably use the bonds, particularly if they're above your target allocation. Um, so I wouldn't automatically just sell whichever investment has performed the best without considering that overall allocation. And then probably review quarterly and consider rebalancing when an allocation moves, let's say, 5 percentage points from its target, and at least annually evaluate whether the portfolio still reflects your retirement income needs and your risk tolerance.
Steve Makes a lot of sense, I appreciate it, and your show has been so valuable. So, thank you for all you do.
Rob West Oh, that's awesome. Thank you, Steve. I appreciate that. God bless you, my friend.
Well, that's going to do it for us today, folks. A big thanks to my team today; they're amazing: Patty, Pat, Devin, Taylor, Jim, Michael, Afton, and everybody here at FaithFi that makes this possible. I have the easy part; they do all the heavy lifting on a daily basis. And thanks to you, thanks for your calls, for your encouragement, and your gifts. FaithFi is listener-supported. That just means we bring you this broadcast every day because of your generous support. If you love the program, one of the best ways to ensure that we're here and can continue to serve you into the future is through our partner program. We have approaching a thousand partners that support us monthly at $35 or more or 400 a year, and these are the folks that make this possible. And so we send you four issues of our magazine, Faithful Steward, all of our new studies and devotionals, and our next one due out right at the first of the year is our brand-new devotional from Randy Alcorn. It's the first time he's doing a devotional on money. Thirty-one-day devotional. He's publishing it through FaithFi; it'll be his 70th book. We can't wait to get it out. It'll go into your hands if you're a partner. Just head to faithfi.com/give. Faithfi.com/give. Hey, don't forget, money is a tool. God owns it all. You and I, we're stewards. That's a really important calling. So let's lean in. Let's live contentedly. Let's give generously, and we'll see you tomorrow. Bye-bye.
Rob West Your investments can do more than grow your portfolio; they can also create opportunities for generosity. Hi, I'm Rob West. As the end of the year approaches, you may be thinking about charitable giving. But have you considered giving directly from your investments? Today, Brian Mumbert joins us to explore how generosity can be part of your investment strategy. And then it's on to your calls at 800-525-7000. This is Faith and Finance on American Family Radio, biblical wisdom for your financial decisions.
Well, it's always a pleasure to welcome my friend Brian Mumbert back to the program. Brian is president and CEO of Timothy Plan, a pioneer in biblically responsible investing and an underwriter of this program. With nearly two decades of experience at the firm, he now leads its efforts to equip Christians to invest with both financial wisdom and biblical integrity. Brian, great to have you back.
Brian Mumbert Great to be here, Rob, thank you.
Rob West Brian, today we're exploring how to give from our investment gains. But before we get into the details, why should generosity be part of our approach to investing in the first place?
Brian Mumbert Well, Rob, as you know, Scripture reminds us that God owns everything and that we're stewards of all He entrusts to us. You know, in 1 Peter 4:10, "As each has received a gift, use it to serve one another, as good stewards of God's grace." And we know in faith-based investing, we look to invest as stewards of what God has entrusted us. We should hold what God has given us with an open hand and look for opportunities to use it for kingdom purposes.
Rob West Mm, yeah, I think that's right. Timothy Plan has put this into practice. I know you give a portion of your revenue to support ministry. What does that look like?
Brian Mumbert You know, from our early days in 1994, Timothy Plan wanted to honor God, not only in the way we invest, but also in the way we support ministries on the other sides of the screens that we do. And so we've supported organizations such as pregnancy centers, faith-based and family-friendly media, and efforts to develop biblical entrepreneurs. In fact, just this past week, we sponsored and attended a Walk for Life and a benefit dinner for two of the largest crisis pregnancy centers in Central Florida.
Rob West Cool.
Brian Mumbert And, uh, as our founder Art Ally always quotes from the Christian industrialist R.G. LeTourneau, who famously gave away 90% of his income—
Rob West Yeah.
Brian Mumbert —he said, "I shovel out the money, and God shovels it back, but God has a bigger shovel."
Rob West I love that. Brian, let's turn to the practical side. What are some of the ways investors can use their investments to support the causes and ministries they care about?
Brian Mumbert There's some really neat ways you can do this, Rob. I mean, you can donate appreciated stocks, mutual funds, or ETFs directly to a qualified charity rather than selling them first. That could potentially help avoid some capital gains tax. And if you're over 70 and a half, you can make a qualified charitable distribution, or QCD, directly from your traditional IRA to an eligible charity. And this QCD can also count towards your required minimum distribution, if you're subject to one.
Rob West Yeah. What a great way to give from your IRA. A lot of people don't realize that's an option. I'm glad you highlighted that. Brian, for someone hoping to give before year-end, what steps should they take now rather than waiting until December?
Brian Mumbert Rob, you really got to start early, especially if you're transferring appreciated securities rather than simply writing a check. And as with anything this important, you really want to work with a trusted CKA financial advisor to really make this plan work, because they understand how this all goes, and make sure the charity can receive this type of asset before you try to give it. I mean, sometimes we're very noble in our intentions, but we do things without checking first. And the tax benefits are helpful, but we really ought to remember the reason that we're giving this.
Rob West Yeah, that's right. Brian, before we let you go, I know Timothy Plan launched three new ETFs earlier this year. Tell us about those.
Brian Mumbert Yeah, Rob, we launched a pair of free cash flow ETFs, uh, tickers TPFC and TPFG. Uh, one focused on value, the other on growth. These ETFs look not only at trailing free cash flow, but also forward free cash flow, uh, which is typically an indicator of a very high-quality company. And then we launched, uh, fixed income ETF, TPFI, our very first actively managed ETF, um, that sits in the core plus fixed income category. And all three of these, of course, incorporate Timothy Plan's biblically responsible faith-based screening methodology.
Rob West Mm. Yeah. Folks, our investments may grow in value over time, but their greatest significance is in how we use them to love God and serve others. And Brian, I appreciate these reminders today.
Brian Mumbert Thanks for having me, Rob.
Rob West That's Brian Mumbert, president and CEO of Timothy Plan and underwriter of this program. Since 1994, Timothy Plan has been a pioneer in faith-based investing, helping Christians align their investment decisions with their biblical convictions. Learn about these ETFs and much more at timothyplan.com. That's timothyplan.com. We'll be right back.
SEGMENT 2
Rob West Grateful to have you with us today on Faith and Finance here on American Family Radio. I'm Rob West. We're taking your questions today; that means we need your phone calls. Here's the number: 800-525-7000. That's 800-525-7000. We would love to hear from you and help you process what you're considering in your financial life today. Again, that number: 800-525-7000.
In the news today, Medicare open enrollment is underway, and a new analysis suggests that people with Medicare Part D prescription drug coverage have a particularly good reason to shop around this year. Now, Part D helps cover the cost of prescription drugs. It can be purchased as a standalone drug program for people with original Medicare, while many Medicare Advantage plans include Part D coverage as part of your plan. Medigap policies supplement original Medicare, but generally don't include prescription drug coverage. Open enrollment runs from October 15th through December 7th, with coverage choices taking effect January 1st.
Now, here's the data. According to KFF, which is an independent health policy research organization, the average monthly premium for standalone Part D plans would rise from about $34 this year to $51 in 2027—that's a 50% increase if current enrollees simply stay in their existing plans. That doesn't mean every Part D enrollee will see that 50% increase. KFF estimates 76% of standalone plan enrollees who don't receive the low-income subsidy will pay a higher premium if they keep their current plan; about 2.4 million could see their monthly premium rise by more than $50—and again, that's monthly.
Premiums aren't the only thing changing. The standard Part D deductible rises from $615 in 2026 to $700 in 2027, and plans can also change formularies, cost-sharing requirements, and pharmacy networks.
Here's the good news: open enrollment gives you an opportunity to compare plans and possibly make a switch. Medicare's Plan Compare tool lets you enter your prescriptions and your pharmacies, and then you can compare estimated costs among available 2027 plans. You're just going to want to do a search for "Medicare's Plan Compare tool" to do that analysis.
What's the stewardship lesson? Well, don't put your Medicare on autopilot. Remember Proverbs 21: "The plans of the diligent lead surely to abundance." So, spend a little time reviewing your coverage before December 7th when open enrollment closes for the year. Even if you ultimately keep the same plan, you'll know you made that decision deliberately rather than simply accepting whatever costs arrive in January. I hope that's a helpful reminder to you today.
All right, we're ready to dive in. We've got time for your questions today before Bob Doll stops by in our final segment. Anything on your mind financially, call 800-525-7000 right now. Let's begin today in New York. Chloe, go right ahead.
Chloe Thank you for taking my call. I am 72 years old, and I am wondering what is the best way to divide my legacy—my funds legacy. I have two siblings; one has one son, and the other one has three kids. Do I split equally between my brother and my sister, or do I do equally among my three nieces and one nephew? That's the question. What is the wisdom behind where or to whom you are leaving your legacy? On Friday, you spoke about the value of the person to whom you are leaving your legacy, but this is more like how are you going to be fair about it?
Rob West It's a great question. When we're talking about the next steward, it's a really important conversation: Is the next steward chosen and prepared? There are a few principles we can apply here. One is that "fair" doesn't always mean "equal." The decision isn't necessarily whether every niece and nephew should receive the same dollar amount, but whether your distribution reflects biblical stewardship, wisdom, love, and intentionality.
You could start by asking: "What do I want this inheritance to accomplish in the lives of the people receiving it?" You could decide to divide your estate equally among the four individuals or equally between the two family branches (50% per family, where those with more children end up receiving less on a per-person basis). Neither approach is automatically more biblical.
One of the big ideas we like to discuss is not only intentionality in selecting the steward, but also what you are doing to pass spiritual and character capital before financial capital. What does it look like to allow them to demonstrate good stewardship before they receive the inheritance after you're gone? What would it look like for them to give part of it right now with your oversight, or spend part of it? It's a little easier with children versus nieces and nephews, but doing your giving while you're living so you know where it's going—as Ron Blue talks about—is a big idea. It allows you to be involved so you're shepherding and shaping along the way.
We also want to make sure the inheritance is a blessing and not a burden, which comes down to each recipient's maturity, financial responsibility, circumstances, and ability to manage an inheritance wisely.
Ron Blue, author of Splitting Heirs, recommends asking three questions:
1. What's the worst thing that could happen if I leave this person an inheritance?
2. How serious would that outcome be?
3. How likely is it?
That helps you determine whether equal distributions, different amounts, or additional safeguards would best serve each recipient. One niece may be a single parent or working in ministry, while another may be well-established with a thriving income. You can look at each situation and decide how to leave the money according to need, financial maturity, and spiritual maturity. Or, you may have the conviction to bless them equally, communicating that ahead of time alongside your desires for how they view it as God's money, your hopes for their giving, and their contentment.
Does any of that make sense or help?
Chloe Yes, it makes very good sense and it's helpful. But it's a very challenging task, I find.
Rob West You need wisdom from above. James 1:5 notes that if we lack wisdom, we should ask God, who gives generously. Make this a matter of prayer.
I'm going to send you two books: Splitting Heirs by Ron Blue, and our new field guide, How to Prepare the Next Steward. Work through these, and see if the Lord makes it clear to you. Hang on the line, and we'll get your information.
SEGMENT 3
Rob West Is the next steward chosen and prepared? A really key question as we think about managing God's money. It's not just about what God has entrusted to us right now; it's about who is ultimately going to be the next steward of what belongs to God. By the way, we will be heading to the phones here in just a moment. We have some lines open: 800-525-7000. Do you have a financial question today on any topic? 800-525-7000.
Chloe called before the break; she's trying to get her house in order in terms of her estate plan. She's got two siblings, one with one child, one with three. They're all in their 20s and 30s—her nieces and nephews—and she's just wondering, how do I divide the estate?
And, you know, just to make things really clear, I think one idea is just to say, "Okay, first of all, we need to recognize that, you know, God loves us equally, but He treats us uniquely." And so we don't need to feel like we have to divide everything a certain way just because one sibling has one child and the other has three.
So, we think about them individually: What are their needs? Are they financially responsible? Where are they headed in terms of their own walk with the Lord, and how might this inheritance bless them?
And then perhaps a couple of options would be:
• Option 1: Equal shares. We divide the estate four ways, giving each niece or nephew 25%. It's simple, it's straightforward.
• Option 2: By family branch. 50% to the sibling's only child and divide the other 50% among the three of the other sibling—a little more than 16% each. It treats the two family branches equally.
• Option 3 though is what I'm getting at here, which is where it's based on individual circumstances, considering financial needs, disabilities, their spiritual trajectory, other circumstances. Again, "fair" doesn't always mean "equal." You could ask: Are they financially secure? Do you want to provide for them directly?
And really think about stewardship along the way, and what could be done now in both your communication with them about your plan once you arrive at it, as well as getting them involved in stewarding some of the resources now, perhaps through giving. So maybe take a portion of what you're ultimately going to give them that you don't believe you need now because you've defined enough, put it into a donor-advised fund—one for each of the four—and get involved in helping them give it away. What a beautiful way for you to help them prepare to be stewards of what they will ultimately receive down the road.
So, hopefully, that gives you a few things to think about, Chloe. And again, our new field guide, which is now out and available, could be a great way for you to lean into this and get some further education. We're going to send one to Chloe, but if you'd like a copy, just head to faithfi.com/shop, and you can pick up one today.
All right, we're taking your questions today: 800-525-7000. Let's go to Arkansas. Teresa, how can I help?
Teresa Yes, I was wanting to find out if wills expire. I know trusts are best, but and what if it's left as it is? Here's the background: I've been married for 37 years, and shortly after my husband and I were married, he and a family member informed me that they were not going to put my name on the house. Now, later on, my name was put on a piece of property that's connected with the house.
And so, but the will stated—this is probably 30 more or less years old—that our kids, that I would get everything first, and then our kids, if something happened to both of us, would be taken care of by my parents. Well, my kids are adults, and my parents are deceased. But that's how the will still reads.
Rob West Okay. Well, let's deal with both of these issues separately.
So, no, wills don't generally expire simply because they're old. A properly executed will can remain valid legally for decades, provided it's not been revoked or replaced.
However, just because a will is still valid doesn't mean it reflects your wishes as they stand today, especially as circumstances change. So, I think if it's quite old and your children are now adults, then I would absolutely have it reviewed. You're going to want to look at whether you have different intentions now, you're going to want to look at the executor that was originally named—make sure that's still the best choice—look at assets, family relationships, financial circumstances. All of those may change, and you'd want to verify that the beneficiaries on other accounts, which are outside the will and inheritance instructions, still reflect your wishes.
So, generally, you want to look at that every, let's say, 3 to 5 years or following a major life change. So I think at the very least, taking a fresh look at that and updating it would be a good idea.
Tell me more about this idea that your name is not on the house, but it's on a property out in front. I mean, that's potentially more important than the age of the will. The will generally controls only assets that are legally part of the deceased person's probate estate. So if your name is not on the deed to the house, the will generally can't transfer ownership of that house unless you have some other legally recognized ownership interest, which could, depending on the state, in part, you know, that it's owned by a spouse and so, you know, that could transfer to you unless it's, you know, co-owned with another party. But tell me more about who legally owns the house.
Teresa Well, the house is in my husband's name and the lot that it's on, and then the lot in front is actually where the driveway is. They just felt more comfortable with me, shall I say, after we've been married a while, and they simply put my name on the lot that was deeded over to us. So, both our names are on that lot.
Rob West Who is "they"? The attorney?
Teresa His parents.
Rob West I see. Okay. All right.
Teresa Yeah, I call it marital politics.
Rob West Okay.
Teresa But and I was just naive and assumed that the will would take care of everything, so I didn't really argue with it, you know, I didn't understand if that would make any difference.
Rob West Yes. And and would you have you revisited that over time? Have you all had conversations about the status of that? Because this is not a matter of—this is not up to his parents to become one flesh when we—okay. And so why, you know, have you broached the subject of adding your name to this deed right now?
Teresa Yes, somewhat, and it's not happened yet.
Rob West Okay.
Teresa I don't think it's going to.
Rob West Okay.
Teresa But.
Rob West Well, you don't automatically become the outright owner when he passes away. A lot of that's going to have to do with Arkansas state law. Let's talk a bit more off the air, Teresa. I really appreciate your call. We'll be right back.
SEGMENT 4
Rob West Great to have you with us today on Faith and Finance here on American Family Radio. Coming up in the next segment, Bob Doll stops by. We'll get to Bob's take on what's moving the markets, which are starting off really strong this morning. The Dow Jones up 550 points, a little more than 1%, the S&P 500 up about the same, Nasdaq leading the way up 1 and 1/4%. Oil prices are tumbling here before the midterms, stocks like that, tech shares are rebounding. Obviously, all eyes focused on the midterms tomorrow, but the market responding pretty favorably ahead of all of that. We'll get Bob Doll's take on it in the next segment.
We do have room for maybe one or two more phone calls in addition to those holding. So if you've got a financial question today, call right now: 800-525-7000. That's 800-525-7000.
Let's go to Wyoming. Russ, go ahead.
Russ Hey Rob, happy Thanksgiving month. We have...
Rob West Hey, same to you, my friend. Thanks.
Russ Hey, my question for you today is this. I feel like it's a hard one. I'm in leadership at an independent Bible church, and we have two paid pastors, and one of them is on one of the healthcare Christian healthcare ministries for insurance and it's worked out well. But the other one has a number of pre-existing conditions. So, they used to be on insurance after the Obamacare thing skyrocketed, so they went to Obamacare. Now, Obamacare—their Obamacare they're on is going up. They just got word, $600 a month starting in January. We don't know what else to do. We've been doing homework. Are there any other options that you know of?
Rob West Yeah. Well, yeah, it's challenging. Obviously, the marketplace can't deny you coverage, but they can charge the higher premiums, and that's what you're experiencing, and they could also exclude treatment because of pre-existing conditions, but they're already on that plan. So, the second option would be a church-sponsored group insurance. Have you guys looked at that option?
Russ Well, that's what I was actually curious about. See, we are an independent Bible church. Are there ones that are available for—like, we're not part of the FPC or anything like that, we're just independent.
Rob West Yeah. Yes, absolutely. So, you know, that that certainly could be an option there as well. You know, with an independent church, you could look at, you know, I think church ministry health insurance programs. So, GuideStone would be a great one. You know, they specialize in, you know, financial services and benefits for pastors and churches, and my understanding is that independent non-denominational nature of the church still qualifies. You'd want to ask that question, but, you know, that could be a great option. Christian healthcare ministries, obviously, you know, you've got to talk through the pre-existing condition with them. Have you explored that option to see what would be possible there?
Russ Yeah, we actually have. That was one we were hoping for, that and Samaritans, and we tried like three, and we couldn't—yeah, none of the three could could help in this particular situation.
Rob West Okay. Yeah. All right. Yeah, I know normally, you know, after 90 days without testing or treatment, you know, they could bring it in, but, you know, but depending on the issue, obviously, in some cases that doesn't work. So, are you all willing to do, or are you able to do a church plan, you know, that would possibly cover him? I mean, I guess the second option would be, you know, maybe the church helps to pay the premiums. That may be one of the most practical solutions. And so, you know, if if you can't afford a traditional group health plan, you know, you could investigate a formal health reimbursement arrangement. And so that would allow, you know, as a small employer to reimburse employees tax-free for qualifying individual health insurance expenses, and so, you know, you could take a portion maybe of that increase and try to help offset it through a, you know, a properly established reimbursement arrangement. They have eligibility and tax rules, these arrangements, and they can affect subsidies if he's getting any through the marketplace, but I think this, you know, could be something you would want to take a look at, and probably get an independent health insurance agent who has some experience in this to kind of come in and help you look at what's possible here. I think, you know, with regard to the ACA, you know, the enhanced subsidies have expired at the end of 2025, but I would say before just accepting that $600 increase, just recheck projected 2027 household income and subsidy eligibility, compare all of the plans—bronze, silver, gold—before automatically renewing, and, you know, again, I think a licensed independent insurance broker could help compare not only the marketplace plans that are out there, but church-sponsored plans, and then maybe even advise you on kind of a reimbursement program that potentially could helps offset some of this. And I think between all of those options, you should be able to find a path forward here.
Russ Okay. Now, we'll look at that GuideStone, too. Where do you find an independent—like, is there a best place to find an independent broker?
Rob West Well, it's a good question and and there's not just kind of one place to go. I mean, I'd probably start in the church just to see if there's somebody who's a health insurance agent. You could call a certified Kingdom Advisor there in Wyoming and just ask for a referral. You know, there are some online searches that you could do, like the National Association of Benefits and Insurance Professionals, and you could do a zip code search, but basically what you're looking for is a broker who's independent, who specializes in small group health insurance. And if you don't have one in your church and, you know, there's a not a CKA in your area, then I'd probably go to an online search next.
Russ Okay. Well, that's more than I knew a minute ago. I really appreciate your help. I took a lot of notes.
Rob West Awesome. Well, yeah, I appreciate you, Russ, trying to look out for this employee. I know this can be disconcerting. I mean, that's a that's a huge jump, $7,200 a year. So, I think whatever you can do to try to help offset that. It's unfortunately a reality that a lot of folks are dealing with right now, but I love that you guys are leaning in. God bless you, my friend. Thanks for being on the program today.
Let's go to Ohio. David, go ahead.
David Good morning. How are you, Rob?
Rob West I'm doing great. Thanks for calling, sir.
David Good, good. Hey, I have a question about a 1031 exchange. So, I'm kind of in the middle of it right now, and I've done the—I sold the property already, and the money is with the qualified intermediary, and right now I'm still in my identification period of the 45 days, and I keep running into not really acceptable real estate. So, my question was, is there something else I could do to defer the tax gain without purchasing the real estate at this time?
Rob West Yeah. Yeah, not without a lot of complexity. Unfortunately, the IRS is pretty strict on that 45-day identification deadline. You can identify multiple replacement properties, so they'll generally allow you as an investor to identify up to three properties regardless of their value. Other rules may even allow you to do even more than three, and so that would allow you to, you know, have some potential properties that improve your chances of successfully completing the exchange. And so I think that's your best option. Beyond that, you know, maybe connecting with an advisor to look at something called a Delaware statutory trust, which, you know, acts as a replacement for the 1031 and allows you to purchase a fractional interest in a professionally managed investment real estate. The other is something called a qualified opportunity fund. Let's talk more offline.
SEGMENT 5
Rob West Well, big day tomorrow with the midterms. Ahead of all of that, the market, well, it's up, oil's coming down, tech's rebounding, the Dow Jones up 600 points, Nasdaq up—well, everything's up about 1%. Bob Doll is here, he's CEO and CIO at Crossmark Global Investments. Bob, why the move down on oil today?
Bob Doll Some rumors of maybe there's going to be a settlement.
Rob West And, yeah, have you heard those rumors before?
Bob Doll I have. It seems like it.
Rob West I laughed.
Bob Doll It seems so, too.
Rob West Yeah, whether they'll come to any kind of agreement is, obviously, in God's hands. But that's the—that's the noise today, which has gotten the market, having been oversold on the horrible, horrible day on Friday, it's—it's recovered, oh, depending on the stock in the industry, somewhere between a quarter and a third of what it lost on Friday.
Rob West Yeah, that would be quite a November surprise if the president pulled a deal out of that here on the heels of the—
Bob Doll Right, wouldn't it?
Rob West Unbelievable. Bob, obviously, a lot to come up tomorrow, do you trust the polls or not? I mean, I know you're still thinking at least one of these—either the House or the Senate—changes over to the Dems, right?
Bob Doll Yeah, the—the House, I think, will move from the Republicans to Democrats with high probability. I'm using a 90% probability. On the Senate, I think probably the same direction, less certain there. I'm using a 60% probability because a lot of the recent polls are moving in the Democrats' favor. A lot of that anti-Donald Trump vote.
Rob West Where do we go from here? I mean, obviously, tomorrow will come and go. We could end up with some gridlock. The president already saying I'm going to have that veto pen ready, and I may even need to pardon a few people, but, you know, does that—what happens to the market then?
Bob Doll Well, historically, the market has done very well post the midterm elections, as you know. We'll see if history repeats itself. It's often the case that during the midterm year before the midterm election, the market has some sort of a selling swoon so it can recover. So—so we'll see. Look, the election's important, don't get me wrong, but all the AI noise, and—and whether there is—whether there's some fire, where there's some smoke, a lot of that's dominating the market conversation, not so much the election, Rob.
Rob West Yeah. I know you had quite a bit of analysis in your market commentary this week on AI and just some of the volatility we've seen as of late. Give us the highlights.
Bob Doll Yeah, so I'd say that the—the questions that have to be asked are: one, our earnings expectations too high? As you know, Amazon and Google reported last week they were disappointing earnings, and the stocks got hit hard. Second question is, how are we going to finance all the AI capital expenditures? And most importantly, number three, how are these companies going to convert all the money they're spending in CapEx to cash, to free cash flow, which at the end of the day drives stocks? A lot of questions coming up about that. But interestingly, Rob, as you're—I'm sure aware, people aren't leaving technology and AI and exiting the market. They're re-earning that money elsewhere. For example, on Friday, when the market was very red, six of the 11 sectors were actually up on the day. There's a lot of rotation going on. That's an important point for investors.
Rob West Yeah, no doubt. I mean, Bob, should we use the B-word here: "bubble" for the entire tech sector?
Bob Doll Yeah, I mean, look, when—when stocks come down as much as they have, you have to look over your shoulder and say, "Yeah, I guess some sort of bubble formed." Now, this is nothing like the year 2000, the dot-com bubble when—when valuation levels were just crazy. Here they're far more sane, if I can use that word, Rob. So, uh, I think we'll have some turmoil, uh, some towing and froing, as I like to say, but I don't see huge downside in the technology sector.
Rob West Yeah. And despite, you know, what you said about the disappointments with Amazon and the like, overall, earnings are still coming in pretty good, right?
Bob Doll Yes, they are. Yes, they are. The—the target still is roughly a 30% gain, which is gargantuan in advance, and, uh, we're almost halfway through, and the 30% is still sticking.
Rob West Yeah, obviously, the Fed continues to be a big part of all of this, and you believe that we got a "skip," not a "hold" on the rate increases, right?
Bob Doll Correct. They—they obviously went a couple months ago, months ago last week, they had a meeting, they did not do anything. December, most are guessing we include that they'll probably raise rates again. The Fed's favorite indicator is the PCE, the personal consumption expenditure and the deflator, the inflation rate on that indicator, which came out last week, so shows inflation up 3.6% year-over-year. No, we're close to their two. They have more work to do.
Rob West Yeah, no doubt. Bob, what about bonds? Obviously, the 10-year continues to be kind of moving around, and what does all of that mean in terms of the current state of the bond market?
Bob Doll You know, the bond market is interesting, moving more with the AI trade than it is with oil, which it had been doing earlier. Uh, and so the days that the—you see the the technology stocks, AI get hit hard, that's usually a day when bonds do well, and—and vice versa. As—as we said, when—when the 10-year yield got up to 5.3% about a month ago, don't forget, you need a few bonds in your portfolio.
Rob West Ah, very good. Bob, we appreciate it as always, my friend.
Bob Doll All the best, bye-bye.
Rob West All right, bye-bye. That's Bob Doll, CEO and CIO at Crossmark Global Investments, you can learn more at crossmarkglobal.com. Sign up for his weekly investment commentary while you're there; it's free.
All right, let's try to round out the broadcast today. Steve has been waiting patiently in Texas. Go ahead, sir.
Steve Hello, I retired a couple years ago with a traditional 401(k), and when I was doing withdrawals, I had to take money out of all of my accounts in that were in there. And well, I recently transferred it to a traditional 401(k), and now I can pick where to withdraw my monthly expenses from. So I was wondering if you had any advice. I have like 60 stocks, 30 bond, 10 money market. Should I just withdraw from money market every month and then rebalance it a few times a year, or should I withdraw from funds that are doing really well every month?
Rob West Yeah, that's a great question. You're right, you do have a bit more flexibility now as you think about, you know, how you pull from these investments and what to draw from first. The general approach is this: first, you start with money market, the cash. You use that to provide your monthly retirement income, and you typically want to keep 12 to 12 months, in some cases even more, of planned withdrawals in cash or short-term investments, and that reduces the likelihood of having to sell stocks during a market downturn. Second would be the bonds. Bonds, you know, obviously can provide another source of funds when, you know, cash needs are replenishing, and if stocks have declined significantly, you may be able to use bonds rather than selling depressed stock investments, although they can, of course, decline in value as well. And then third, the stocks themselves, because of the long-term growth potential. I mean, we have—we need this money to last another three or more decades here. So, I think, you know, this isn't a rigid rule that cash always has to be exhausted first, but I think, you know, that is generally the, you know, the approach most people take. But give me your thoughts. What are you considering here?
Steve Yeah, I was—I think that makes sense, I just didn't know if I as my, uh, balances kind of tweaks over the year, I didn't know when it was a good time to look at that and replenish that cash, um, part of my portfolio. Yeah. You have a couple times a year or?
Rob West Yeah. So I would say, you know, you want to review quarterly and replenish annually is typically the way you go. So you establish a cash target, you know, again, 12 to 24 months of planned withdrawals. Um, so if you were taking 3,000 a month, your target could be, you know, somewhere between 35 and 70,000. And then establish a minimum cash balance. So if your cash falls below 12 months, you could consider replenishing it; don't wait till it's completely depleted. But then, you know, you would want to replenish from the investments that are overweight. So if stocks have appreciated and are up to 65% of your 60% target, then I'd sell some of the stocks to replenish the cash. If stocks have declined, that's when you'd probably use the bonds, particularly if they're above your target allocation. Um, so I wouldn't automatically just sell whichever investment has performed the best without considering that overall allocation. And then probably review quarterly and consider rebalancing when an allocation moves, let's say, 5 percentage points from its target, and at least annually evaluate whether the portfolio still reflects your retirement income needs and your risk tolerance.
Steve Makes a lot of sense, I appreciate it, and your show has been so valuable. So, thank you for all you do.
Rob West Oh, that's awesome. Thank you, Steve. I appreciate that. God bless you, my friend.
Well, that's going to do it for us today, folks. A big thanks to my team today; they're amazing: Patty, Pat, Devin, Taylor, Jim, Michael, Afton, and everybody here at FaithFi that makes this possible. I have the easy part; they do all the heavy lifting on a daily basis. And thanks to you, thanks for your calls, for your encouragement, and your gifts. FaithFi is listener-supported. That just means we bring you this broadcast every day because of your generous support. If you love the program, one of the best ways to ensure that we're here and can continue to serve you into the future is through our partner program. We have approaching a thousand partners that support us monthly at $35 or more or 400 a year, and these are the folks that make this possible. And so we send you four issues of our magazine, Faithful Steward, all of our new studies and devotionals, and our next one due out right at the first of the year is our brand-new devotional from Randy Alcorn. It's the first time he's doing a devotional on money. Thirty-one-day devotional. He's publishing it through FaithFi; it'll be his 70th book. We can't wait to get it out. It'll go into your hands if you're a partner. Just head to faithfi.com/give. Faithfi.com/give. Hey, don't forget, money is a tool. God owns it all. You and I, we're stewards. That's a really important calling. So let's lean in. Let's live contentedly. Let's give generously, and we'll see you tomorrow. Bye-bye.
Your investments can do more than grow your portfolio. They can also create opportunities for generosity. As the end of the year approaches, you may be thinking about charitable giving. But have you considered giving directly from your investments? On this Faith & Finance on AFR, Rob West and Brian Mumbert explore how generosity can be part of your investment strategy. Then, it’s on to calls.
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