Rob West: One of the simplest ways to stay out of credit card debt is to save up for major purchases before you make them. Hi, I'm Rob West. When you plan ahead for expenses you know are coming, you can pay with money you already have instead of borrowing from tomorrow's income. Today we'll look at a simple way to do that. And then it's on to your calls at 800-525-7000. This is Faith & Finance on American Family Radio. Biblical wisdom for your financial journey.
Now, you may be thinking, isn't that what my emergency fund is for? Not exactly. Your emergency fund is there for the unexpected—the transmission that suddenly goes out, an unplanned medical bill, or a temporary loss of income. What we're talking about today is different. It's intentionally setting money aside for a larger expense you can reasonably anticipate: replacing a roof, buying your next vehicle, taking a vacation, or making a major home repair.
You'll sometimes hear this called a sinking fund. But whatever you call it, the principle is simple: save a little at a time now so you don't have to borrow later. That takes patience. And in a culture built around instant gratification, patience can be a powerful financial habit.
It can also be an important part of faithful stewardship. Proverbs 21:20 says, "Precious treasure and oil are in a wise man's dwelling, but a foolish man devours it." Wisdom doesn't require us to spend everything available to us today. Sometimes wisdom means looking ahead, preparing patiently, and allowing time to work in our favor.
So, how do you get started? Well, first, you need to define the goal. Let's say you expect to need a new roof and estimate the cost at $7,500. Now you have a specific target. Next, determine how much you can realistically save each month. If you can set aside $500, you'll reach $7,500 in 15 months. If $500 isn't realistic, that's okay. Maybe you start with $100 or $200 and look for opportunities to increase it over time. The important thing is to begin.
You might redirect money from another spending category, put part of a bonus or tax refund toward the goal, or send some of the savings from a canceled subscription into the account. Small amounts add up when you consistently give them time. Each deposit represents progress toward greater financial freedom. Instead of wondering how you'll pay for a major expense when it arrives, you're gradually preparing for it. That can reduce financial stress and give you more flexibility when the time comes to make the purchase.
Next, keep this money separate. Consider opening a dedicated savings account rather than mixing the money with your everyday checking, emergency savings, or other financial goals. When the dollars have a clearly defined purpose, you're less likely to spend them somewhere else.
Then, automate the process if you can. You might schedule a transfer every payday or once a month. That turns saving from something you have to remember into part of your normal financial rhythm.
And remember, your emergency fund and retirement accounts have different jobs. Using retirement money for a purchase today can trigger taxes and, depending on your age and circumstances, possibly penalties—not to mention the loss of future growth. Your retirement savings are meant to provide for a future season, so whenever possible, let them keep doing that job.
As you plan, it can also help you make your goal SMART: Specific, Measurable, Attainable, Relevant, and Timely. Be specific about what you're saving for and how much you'll need. Make it measurable by tracking your progress. Keep it attainable so you don't become discouraged. Make sure the purchase is truly relevant to your priorities, and give yourself a reasonable target date. If you miss the date, that doesn't mean you've failed; adjust the plan and keep going.
The larger lesson is that good stewardship often happens long before the purchase itself. It happens when we patiently prepare, exercise self-control, and make intentional decisions with what God has entrusted to us.
And if you're looking for a place to save toward those future expenses, AdelFi Christian Banking is our recommended banking partner here at Faith & Finance. Along with checking, savings, and credit card options, AdelFi offers a high-yield money market account with an exceptional rate of 4% on balances up to $100,000 for the first year. It's another opportunity to consider not only how you manage your money, but also the financial institutions you choose to work with. You can learn more at faithfi.com/banking.
As you consider whether AdelFi is right for you, here's what you need to know: Membership eligibility is required, and while this institution is not federally insured, each account is privately insured up to $250,000 with American Share Insurance. If you want to learn more, go to faithfi.com/banking. We'll be right back.
SEGMENT 2
Rob West: Thanks for joining us today on Faith and Finance here at American Family Radio. I'm Rob West, and just a moment, we're going to begin taking your calls and questions. The number to get in on the conversation is 800-525-7000. Again, that's 800-525-7000. The calls have already started coming in, but we do have room for you at the moment. Pat in, taking your calls today, and so thankful for our team, Michael and Adam and everyone that makes this possible on a daily basis. But we're thankful for you as well and want to help you think about aligning your financial decisions with God's word, with a biblical worldview. We do that each day as we work through the questions that you're wrestling with in your own life. Whether you are giving, saving, or spending, you're probably doing all three, but there's one that's top of mind today, and we'd love to help you process that through the lens of biblical wisdom. So call right now. We'll begin diving into those questions here in just a moment: 800-525-7000.
In the news today, Congress has approved the bipartisan clergy act, legislation that would give certain pastors and other religious workers a second chance to participate in Social Security. The Senate passed the measure unanimously on September 30th, following a 350-to-5 House vote in April. The bill now awaits President Trump's signature. Under current law, ministers who receive an exemption from Social Security and Medicare taxes on ministerial earnings generally cannot reverse that decision. The clergy act would establish a one-time opportunity to revoke the exemption, with coverage beginning in 2029 or 2030. Participating ministers would begin paying applicable self-employment taxes and could earn credits toward future Social Security and Medicare benefits, subject to eligibility requirements. Guidestone and other Christian organizations have welcomed the legislation, saying it could strengthen retirement security for ministers who opted out earlier in their careers. The IRS would provide additional guidance if the legislation becomes law. This is a really important piece of legislation affecting pastors, will certainly keep you updated along the way.
All right, we're ready to dive into your questions today. Again, that phone number: 800-525-7000. You can call right now. Let's begin. We're going to start in Louisiana today. Kyle, go ahead.
Kyle: How you doing?
Rob West: Doing great. Thanks for your call.
Kyle: I just wanted to see, uh, I wanted to ask a question. Me and my wife are in our mid-20s, and, um, she just went out on maternity leave because we just had a baby. And, uh, so she's right now we're just getting by with my income, and, uh, we're doing all right, but I just wanted to ask you how would be the best way to pay off the debt that we have, uh, with, like, because that's our goal is to be within like 10 or 20 years be completely debt free so that we can start to bless others.
Rob West: Yeah. Well, I love that, Kyle, that you and your wife are thinking that way, both strengthening your financial foundation, but with a goal in mind, not just so you can have more lifestyle spending, but so that you can give. And that's amazing. I think that's, uh, that's really aligning your priorities with the heart of God that we certainly see in scripture.
Um, you know, I think this idea that you would aggressively pay down debt is great. I think first, though, if you haven't already, we really need to stabilize cash flow. So, you know, my priority order, again, some of this may have already been addressed, but let's just talk through it. Um, I would say, you know, let's really base spending on your income alone until she returns to work, um, and then prioritize, of course, housing, utilities, groceries, transportation, insurance, childcare, the essentials. Um, now, you can ask the hospitals, uh, for itemized bills, you can ask them for interest-free payment plans. Medical bills can often be negotiated, so I would say, you know, don't consider putting—and I'm not hearing this from you, but just want to make sure I say this—don't think about putting anything on a credit card.
Um, you're going to want to prioritize the high-interest debt. So, we make minimum payments on all the debts, but then directly apply any extra money toward that high interest or those high-interest balances, again, especially credit cards. And then prepare for childcare costs, you know, before she returns to work. You're really going to need to think through how much additional income you'll actually bring home after childcare and transportation and other work-related expenses. And then we also want to make sure that you've got, uh, a fully funded emergency fund. If not, let's work toward getting those three to six months of essential expenses in emergency savings. And then review your insurance as well. We want to make sure the baby has health coverage, and then think about now an affordable term life policy for both of you in the event, you know, the Lord were to call one of you home. Obviously, there are expenses that would be born as a result of that income going away, and that's where I think an affordable term life insurance policy to get you, you know, enough coverage, plenty of coverage to offset that income so it could be invested and and generate the income that would be lost, is obviously critical. But let me stop there and just get your thoughts on all that.
Kyle: Yeah, that, well, I was actually fortunate enough to marry a wife that actually made me better with money than worse with money. And so I'm actually, you know, before that, I was actually wasting a lot of money on, uh, just, you know, just a lot of dumb stuff that single men do sometimes, and. Sure. But, uh, so, but, you know, we're actually doing pretty good, and she, you know, she knows more about, her parents taught her more about money than I did and everything, so I was blessed with that. And, um, but, uh, we have we do have life insurance, we have, um, health insurance for it's only me, me and our son are on my, uh, health insurance for our job, or for for my job. And then she is going, she's going to go back to work, um, in the next couple months, and so she'll just get health insurance on that from there. And, um, but, yeah, I mean, I think I just wanted to, I guess, ask like what, you know, what we should focus on. I know the quick easy answer is the highest interest, uh, focus on paying that off first, but, you know, if there are any other.
Rob West: Yeah, totally. No, I think you're right on track there and I appreciate that extra context because, you know, you've you've got the life insurance and the health insurance covered. What about emergency savings? Do you guys have a nice cushion equal to as much as six months of expenses?
Kyle: Yeah, we actually have, um, I think we have about 10,000 in savings right now. And, uh, which which would cover, I think, our our house note for about, uh, let's see, for about, I think, four or five months. Okay. Yeah. Maybe even six, I think. I don't, something like that. Yeah. But.
Rob West: Yeah, ideally what you would do is you and I suspect you all have a budget or at least, you know, you have one that perhaps works now. We need to think about what is that budget look like where she's gone back to work, which means income goes up, but also expenses go up, too, as you now have childcare unless there's a family member or friend that's stepping in there. But let's get that budget dialed in for what life is going to look like to the best of your knowledge once she goes back to work. And then whatever that monthly spending is, that times three to six is really the goal there for the emergency savings so that if something unexpected happened, there was a loss of income or a major unexpected expense, you all would have the ability to cover that. Um, but apart from that, let's talk about the debt. What specifically do you have? How much and what type of debt?
Kyle: Uh, we owe on my truck, we owe, um, because I have I have a truck and she has a car. Her car is paid off. She she paid her car off before we got married, but, um, I owe about, or we we we owe about 13,000 on my truck right now. Okay. And then, uh, I think 8,000 is her student loans that we have left.
Rob West: Okay. Great. And then do you have medical debt as well?
Kyle: Yeah, our son was in the NICU for a few days after he was born, and I think that was about 80,000 after all that was finished.
Rob West: Okay, good. Let's talk about that right after the break. Kyle, it sounds like you guys are in great shape. I love the direction you're headed. Let's, uh, let's talk just a bit more, and we appreciate your call today. Stay right there. We'll be right back.
SEGMENT 3
Rob West: Thanks to have you with us today on Faith and Finance here at American Family Radio. I'm Rob West. We're taking your calls and questions today. We've got some lines open: 800-525-7000. Any financial question today, call right now. Coming up in our final segment, Bob Doll stops by. We'll get Bob's take on what's moving the markets today. But first, before the break, we were talking to Kyle in Louisiana.
He's working full time, he's 25, his wife is still on maternity leave, but going to be returning to work in the next couple of months following the birth of their son. Wondering about just the priority order of paying off what they have in front of them. They really are focused on getting to a place where they're living within their means, they're making wise decisions, they want to get out of debt completely as quickly as they can, and they want to be able to increase their giving over time, which is just incredible.
In terms of the priority order, I know you mentioned before the break, Kyle, that you all could have a NICU bill for as much as 80,000. However, you're anticipating that her insurance coverage, the COBRA coverage, was active and would apply retroactively to the baby's birth and the NICU stay. And so, Lord willing, most of that, as you're expecting, will be covered. But I think we need to wait for insurance to process those claims before really making any moves there or agreeing to any kind of payment plan because we need to figure out ultimately what's your responsibility, if anything.
I think in the meantime, let's, you know, focus on building that emergency savings to three to six months worth of total expenses. I would say the the truck loan is probably the least of my concerns. It's a reasonable interest rate of 5.3. The the student loans, I know you didn't know the interest rate, they're probably around between 7 and 9%. That's probably your highest interest loan. I know it's only 8,000, so it'd be great to get that knocked out when you can. So I think your priorities at this point are, let's let's find um let's wait for the medical bills to be processed. Let's build emergency savings, and if you're going to focus on anything, let's focus on knocking out the student loans.
And then, let's also make sure you're contributing to retirement accounts, at least and as much as what will give you any kind of match, either you or she has available to you. But I would say overall you're you're in really great shape, Kyle, and heading in the right direction.
Kyle: Well, thank you. I appreciate that, and I'm sorry if I if I took up too much time.
Rob West: No, this this was great. This is what we do, and, uh, it was a delight to talk to you today. If I can help you at any point along the way, uh, don't hesitate to reach out. Hey, stay on the line. I'm going to send you a copy of Money and Marriage God's Way. I think it'll be a blessing just to build on what you guys have already done. You've done a great job, and I know you said her parents equipped her well to really handle money wisely, and that's been a great influence on you. But I think perhaps this could even take it to the next level, and I'd be happy to send it as our gift. Again, it's called Money and Marriage God's Way by Howard Dayton. We'll put it in the mail, and Kyle, call anytime. Thanks for being on the program today.
Let's go out to Texas. Hi, George. Go ahead.
George: Good morning, Rob.
Rob West: How are you, sir?
George: Oh, I'm doing quite well. How can I help you? My question concerns a letter I received from the IRS. Since you just read the first couple letters, starting 2027, the savers match replaces the savers credit contributions made your retirement plan for IRA. If you qualify, the federal government matches up to 50% of what you contribute to your retirement account each tax year. Now, I'm currently, uh, drawing social security. I'm 70 years old and I am still working. Uh, so would I qualify for that or do I not?
Rob West: Yeah, it's a great question, and this is a change that's coming. You may certainly qualify for the new saver's match, even though you're 70, collecting social security, and still working. Age doesn't disqualify you. Collecting social security doesn't disqualify you, and you certainly can qualify while employed. Your income is one of the biggest factors in determining eligibility. So you have to contribute to an eligible retirement account, like a 401(k) or an IRA. It kicks off, uh, with contributions made in 2027, not 2026. Uh, if you're married filing jointly, your income is going to need to be below 71,000. And so these, that limit uses a special modified adjusted gross income calculation, and your the taxable portion of your social security benefits would count toward that income along with your wages. Um, do you think you may go over that limit?
George: Uh, probably not, but possibly.
Rob West: Okay. Yeah. So that would be the thing to look at. But essentially, I think you described it well. The old credit through 2026 was a tax credit that reduced income taxes owed when you contribute to a retirement account. This new saver's match, the federal government will actually contribute up to $1,000 annually directly into an eligible retirement account like an IRA, uh, or 401(k), and then basically they're matching up to 50% of the first 2,000, so a total of 1,000. And the first matches are expected to hit in 2028 based on your 2027 contributions. But again, it's ultimately going to come down for you to whether you are, you know, under the the income limit. And if you don't know, you could do some estimates with a CPA or have somebody kind of help you think through that. But essentially it would be your wages plus the taxable portion of your social security.
Does that make sense?
George: Uh, yes. One last question. If I do, uh, qualify and everything, how long after I make those contributions do I have to wait before I can draw any out and obtain all of that?
Rob West: Yeah. So, when when could you draw out the match?
George: Well, uh, when will I be able to draw out anything from, uh, the account? Would I would I lose the match?
Rob West: Oh, I see. Yeah, no, it it's essentially, um, you know, it it's based on the contributions for that year. And so as long as you make the the contributions up to 2,000 in that year, then you would get it in 2028, and there would be no limit on when, uh, you could take that out in terms of a timeframe. George, I hope that helps. God bless you, my friend. Thanks for calling. We'll be right back.
SEGMENT 4
Rob West: Great to have you with us today on Faith and Finance here at American Family Radio. I'm Rob West. We do have some lines open today; we're taking your questions. Perhaps you're thinking about paying off some debt, maybe you want to save for the future, perhaps you're wondering how to navigate the market or you want to increase your giving. Maybe for you, it's preparing the next steward. Whatever's on your mind today, we'd love to chat about it with you. Lines are open, our team is standing by, and we'd love to help you process your financial question through the lens of biblical wisdom. The number to call today: 800-525-7000. That's 800-525-7000.
By the way, when it comes to preparing the next steward, our next field guide, How Do I Prepare the Next Steward, is due out in the next two weeks. We are so excited to be able to bring you this incredible tool, building on our first field guide, How Much Money Is Enough, helping you set very practically and biblically enough for your lifestyle and your what we call lifetime accumulation. So how do you set a monthly cap, a finish line for your spending monthly, and then how do you set a lifetime cap for your total accumulation?
Well, field guide number two is all about How Do I Prepare the Next Steward? How do I pass on faith and virtues and relationships and money with the idea that we want to pass wisdom before wealth? There is a variety of types of wealth. A lot of times we think about wealth exclusively around financial wealth, but before that, we need to transfer spiritual wealth. We need to transfer character wealth. We need to transfer relational wealth. How do we do that with intentionality so that when our heirs receive the financial wealth, they're ready for it?
You know, financial wealth requires more than a conversation. It really requires thoughtful preparation and I would say professional guidance. That's why we talk so much about the Certified Kingdom Advisor designation and, of course, properly prepared legal documents. And so we took the time to put together the exercises related to all four types of wealth and then when it gets to the financial wealth, to be able to give you the exercises to shape your intentions before meeting with your financial advisor, your estate planning attorney, your Certified Kingdom Advisor. And it all centers on this idea that money is a tool and not a treasure.
Because before deciding how much to transfer or when to transfer it, we need to begin by defining what we hope that tool, money, will accomplish. And if our next steward is a person—which you might say, well, what else could it be? Well, it could be a ministry or maybe it's both. But if it's a person, we want them to practice with real financial decisions before transferring significant responsibility and then reflect together. And that can show up in giving, saving, and spending. So we start by giving together. Maybe we pray about a need and select an organization and trust them with part of the family's giving budget. Help them to see and celebrate the impact of the gift. You're watching and providing counsel along the way.
Maybe you save together. Choose a goal and save a portion of every dollar received. You can explore how patience and different savings tools can prepare them for a future need and opportunity. And maybe you research investments that align with your values or discuss how investing isn't just about ownership and returns, but can also promote human flourishing and create capital to serve communities. Maybe you spend together as well. Provide a real budget for a purchase—maybe it's a family activity, a home project, or an education expense—and then let them own it and compare the options and make the trade-offs and practice wise limits. So these are the kinds of ideas that we share in this tool about giving together and saving together and spending together, all with the goal of letting the next steward practice financial decisions before all of a sudden, at our passing, maybe there's a six- or seven-figure sum that's transferred to this heir. We want to make sure they're ready to handle it. That's what this new tool is all about: How Do I Prepare the Next Steward. We can't wait to get it in your hands, and, uh, it will be out very, very soon. More details coming in the next few days.
All right, let's head back to the phones. By the way, Bob Doll stops by in the next segment. The market, well, mixed today. We'll go into detail in just a moment. First, let's go out to Dallas. Hi, Lucas, how can I help?
Lucas: Hi, yes, sir. Good aft- or good morning. Thank you for your ministry. I, uh, I listen daily, and, uh, I can't tell you how much, uh, I've learned listening to your show every day. Um, my questions pertains to so, my—my wife and I have both been married before. Um, I'm about to turn 50, she's 46. Um, she has her own job, I have my own job, and we both want to honor the Lord with our finances. Um, we are candidly having some challenges knowing how to combine finances when we both lived very independent lives, um, now bringing those finances together to pay what would have been her bills and my bills that are now our bills, um, and how just I'm just looking for direction or maybe even a—a book resource and just some general guidelines on how to have that conversation when we both had bad experiences in the past with our spouses not being good stewards.
Rob West: Mhm, yeah, yeah. Have you all talked through that just in terms of, you know, what went wrong in the past and kind of each how you're wired uniquely and—and how that affects how you handle money today? Have you all spent some time talking through all of this?
Lucas: We have. Yeah, and we've—we've got a tad bit different viewpoint on—on how to spend money, invest money, allocate money, etc. Um, and, you know, we're both very open um, to doing it the right way and making sure that it's God-centered, um, that it's transparent, and, you know, that we're—we're giving our first fruits as—as we're supposed to. But at the same time, just looking for a point of reference if there is even, whether it be, I know that there's references in the Bible, but at the same time, if there is a book or some sort of a resource that you would recommend so that she and I could look at it, not based on my opinion and her opinion, but a third-party opinion that you might be able to, uh, you know, to to recommend?
Rob West: Yeah, totally. And—and I do have some thoughts on that, and I will share a resource with you. Let me just say, first of all, thanks for listening regularly. I'm delighted the program's been a blessing to you. And I love that you and your wife are approaching this with the desire to honor the Lord, Lucas.
Marriage is, of course, a picture of unity. And Genesis 2:24 reminds us that a husband and wife become one flesh. And that oneness extends to how we approach our finances. Now, that doesn't necessarily mean you have to combine every account immediately, especially in a second marriage. There may be children and existing obligations or estate planning considerations that require some additional conversation and thought and even planning that may or may not involve, you know, legal mechanisms. But I would encourage you to move toward—and this is the big idea—a shared financial vision, even if some of the accounts remain separate.
Now, this idea that you've each come to the marriage relationship with different wirings and different temperaments and different experiences with money, that's perfectly normal. A lot of times, most of the time, I would say, you know, in the marriage relationship, you know, one's a spender, one's a saver, and, uh, you know, so much of the way we handle money today as adults was formed not just in a prior marriage, like in your situation, when we were children. You know, how our mom and dad modeled money management and, you know, a lot of those habits are instilled by the age of nine, the data says.
So we're bringing different personalities, different bends to their marriage relationship. That can be a source of conflict unless we have understanding about where each other is coming from, and we actually use that as a blessing and a benefit to move us toward, I think, a more complete picture of what God desires. We want to start though with grace, not control, and recognize we're different people, and we have experiences from the prior marriages. We want to agree on a shared biblical vision. We have to practice complete financial transparency, and then we need to work toward one household spending plan that drives toward unity. Stay on the line, let's talk a bit more. We'll be right back.
SEGMENT 5
Rob West: Thanks for joining us today on Faith and Finance here at American Family Radio. Coming up in just a moment, Bob Doll stops by. We'll get Bob's take on what's moving the markets as we start a new trading week, never a shortage of data and news to process. Bob will weigh in on all of it straight ahead. But first, before the break, we were talking to Lucas in Dallas. He and his wife were each married previously—this is a second marriage. They want to honor the Lord with their finances. They're coming with different experiences, naturally, uh, even some negative experiences related to money from their prior marriages, and they're struggling with how do we put that together in a way that honors the Lord and allows us to move forward. And, you know, I was sharing before the break just about this biblical picture of marriage that starts with this idea of one flesh from Genesis 2:24. It doesn't mean we combine everything immediately, but we do have honest conversations to say, what does it look like to move forward with a shared financial vision?
And I think that starts with grace, not control, acknowledging those differences. You agree on a shared biblical vision and maybe the question that's on the table is, what does honoring the Lord with our money look like in our marriage? And that's where, you know, as we bring our differences to the table, it's actually a beautiful picture, I think, of a more complete representation of, of Christ and what we see in God's word because we can, you know, I think leverage those differences in a way that's God-honoring as we talk about generosity and debt and saving and lifestyle.
We practice complete financial transparency every step of the way, and it really starts with that one household spending plan, Lucas. And I think that really is the beginning point as you come together and agree on giving and saving and bills and discretionary spending and, you know, maybe each of you has an agreed-upon amount of personal spending money without needing approval for every purchase, and that's just part of the freedom and flexibility, but it's a part of the plan. And so we're counting on it, and I think if you could get that one piece in place, that could drive over time toward even more financial unity as you start putting everything together.
And that's also where I think a certified kingdom advisor could be helpful, somebody who could help you think about, you know, financial planning and retirement planning and the estate side of it as well, but who also understands the heart of God in scripture and could provide that, you know, kind of guidance at the same time. Keep in mind Philippians 2:3 and 4, that we're to put each other's interests ahead of our own and that wise counsel is going to help us succeed in the end of the day at the end of the day.
So, hopefully that at least gives you some just encouragement on where to go from here. And then I'll put, uh, a couple of copies of Howard Dayton's Money and Marriage God's Way in the mail to you as our gift, and I think that could be a great resource for you. Does that all make sense though?
Lucas: Yes, sir, very much, and I really appreciate the time and the call and the advice, very much. Thank you.
Rob West: Absolutely, Lucas. Lord bless you. Thanks for being a faithful listener. Hang on the line, and, uh, we will, uh, we'll get those resources in the mail to you. We'll get your information.
All right, Bob Doll is here. Bob, as, uh, as we start a new trading week, uh, boy, the Middle East back in the news today as, um, we see some attacks in Saudi Arabia that's causing some disruptions, uh, with air travel. But, uh, what do you, what's your take? What are you watching as we start this week?
Bob Doll: Yeah, you certainly can't dismiss the, uh, Middle East and the, uh, the spreading, if I can use that term. Uh, thankfully, oil prices are reasonably well-behaved. Um, we'll watch that carefully, but we don't need this, um, ugly, um, set of circumstances to spread, Rob, as you know. Uh, what are we watching? Well, we are at the front end of, uh, uh, a very vicious pace of earnings releases here over the next three, four weeks, and expectations are high, and let's hope we can meet them. I suspect in large part we will.
Rob West: Yeah, and despite our challenges, Bob, I know your key, number one takeaway for this week's Doll's Deliberations was just the how solid and strong our economy is overall, right?
Bob Doll: It really is. You see that in lots of different places: consumer spending, the manufacturing sector, um, in business investment, capital expenditures. Uh, these are all, um, reasonably strong, Rob, and, uh, so this, uh, hope, um, that, uh, it would slow down so inflation could slow down, not so much, not today.
Rob West: Yeah, no doubt about it. Uh, Bob, uh, you know, at some point, we will see this cycle roll over and we'll have an economic slowdown; um, you know, what is your base case just in terms of, you know, when we might see that happen?
Bob Doll: Yeah, not anytime soon. However, as you point out, at some point, uh, and and the issues that the, uh, those are concerned about the strength of the economy: higher oil prices, the fact that central banks around the world are tightening, interest rates have moved up out the curve, um, these things, um, argue for at some point a slowdown. My guess is we'll see see it sometime in the next, uh, couple of quarters, but unlikely a recession because, uh, consumer net worth is pretty strong, um, business formation is high, productivity growth is improving, credit conditions reasonably good. You put all these things together and you say, uh, we're just going to keep at worst muddling through.
Rob West: Yeah, no doubt. Bob, obviously front and center is always monetary policy, and, uh, that's of course a big question. We got that, uh, recent rate cut. Where do you think we go from here?
Bob Doll: So, so, um, a lot of people say, "Oh, my goodness, the Fed's raised rates, isn't it going to encumber the economy?" Well, interest rates relative to history are still pretty low, Rob. They just got so low and stayed low for so long, we think when you have a five handle on, uh, 10-year Treasury, that that that's, uh, high, not necessarily. Look, are higher interest rates slowing down housing and the mortgage market? Absolutely. What does it put a crimp on, uh, valuations in the stock market? Not really.
Rob West: Yeah. Bob, what about bonds? Obviously, the 10-year getting a lot of attention just because even though maybe it's it's not that high if we look over the long haul, um, you know, it's—it's much higher than it has been, and we've had a rapid ascent here, but what do you take on the, uh, bond market right now?
Bob Doll: Bond market, a lot more interesting than it's been in some time. Um, one of the things we look at is the PE ratio of the stock market, which is 19 times. If you look at that from an earnings yield standpoint, meaning reverse the numerator and denominator, that's 5.26%. That's virtually identical to the yield on a 10-year Treasury. We have not seen that in yield in years. So those that are tempted by, uh, bonds, buying a few, I think is just fine.
Rob West: Yeah, very good. Bob, what sectors are you adding to your portfolio that perhaps have not been present, you know, in the recent past that, uh, look attractive to you?
Bob Doll: Uh, we've been, uh, all year long and continue to add to energy stocks, uh, particularly on weakness, which we haven't had a lot of of late. Uh, we backed off the financial sector some as they did so well, but they corrected in the middle of the year and are far more interesting, so we're adding to those, um, and of course still, uh, owning, uh, a bunch of technology, the oscillation between software and semiconductors keeps us busy.
Rob West: Last question, Bob, give me your take on just where we find ourselves. What's the state of play right now in faith-based investing, specifically?
Bob Doll: Oh, my goodness, um, um, how many hours do I have? Clearly improving, but a long way to go. I was just looking at it, the the amount of money in faith-based compared to all money under management is still less than one half of 1%, but double where it was 10 years ago, which means it's growing fast from a low base. As more and more individuals, more and more financial advisors, more and more institutions are saying, we want to align everything in our life, including our investments, with our faith, with, with our values, and that's causing more and more people to, um, waddle into this space. A lot of them do it slowly, some are just jumping in with both feet and just enjoying it.
Rob West: Well, I think it's only a matter of time, Bob, before this is just normal. It's just how Christians invest. I think we're headed to that place, and clearly, uh, grateful for your leadership in this space.
Bob Doll: Couldn't agree more, like all of life, uh, we, we need to live by the book.
Rob West: That's exactly right. Lord bless you, my friend. Thanks for your time today.
Bob Doll: Thank you.
Rob West: All right. That's Bob Doll, he's CEO and CIO at Crossmark Global Investments. Uh, you can learn more at crossmarkglobal.com. While you're there, be sure to check out, uh, Doll's Deliberations, that's his weekly investment commentary, and, um, I rely on that weekly. It's a great free resource delivered to your inbox, uh, each Monday, and we'll really just give you a nice overview of where do we find ourselves in the market, in the economy, the various sectors, what are the headlines, and then what are Bob's key takeaways, uh, at that moment. Again, crossmarkglobal.com is the place to go.
All right, as we, uh, near the end of the broadcast, let me just say a couple of things. First, thank you. Thank you for being here every day for your kind remarks about the program. What a privilege it is to be invited into your stories through your questions, to be able to help you think about the decisions you're making in your financial life as we line those up, as Bob said, with our values. Here's what we know: at its core, God owns it all, we are stewards—that's a high calling. And here's the question about money: is it a tool, or is it a treasure? If it's a treasure, we're replacing, uh, God with something that is created. Money is good, but it's not a God, and it can't dethrone God. And so when God is in his rightful seat in our lives, as, uh, as creator, as Lord over our lives, and then money takes its rightful place as tool, wow, it's a powerful force for good. Our, our hope and our prayer every day is that we'd be able to instill that big idea while at the same time helping you make practical decisions to move forward in your financial life. Secondly, we don't do this show without you. We're listener-supported, and so if you love the program, I would invite you to be a supporter of the ministry. We're slightly behind a couple of months into our new fiscal year, and so if you'd like to make a one-time gift, that'd be incredible. Just go to faithfi.com/give. That's faithfi.com/give. Also, another enormous way for you to support our work if you love the ministry is to become a partner. We rely on monthly partners to do what we do. It provides a much-needed source of ongoing, uh, support. You can learn more about our partner program when you go to faithfi.com/give. Partners receive every one of our resources as they roll out, our studies, our devotionals, four issues of our magazine, pro access to the app, and a quarterly ministry update. Again, faithfi.com/give.
Big thanks to Adam, Pat, Devin, Michael, and everybody here at Faithfi. Come back and join us tomorrow. We'll see you then. Bye-bye.
Rob West: One of the simplest ways to stay out of credit card debt is to save up for major purchases before you make them. Hi, I'm Rob West. When you plan ahead for expenses you know are coming, you can pay with money you already have instead of borrowing from tomorrow's income. Today we'll look at a simple way to do that. And then it's on to your calls at 800-525-7000. This is Faith & Finance on American Family Radio. Biblical wisdom for your financial journey.
Now, you may be thinking, isn't that what my emergency fund is for? Not exactly. Your emergency fund is there for the unexpected—the transmission that suddenly goes out, an unplanned medical bill, or a temporary loss of income. What we're talking about today is different. It's intentionally setting money aside for a larger expense you can reasonably anticipate: replacing a roof, buying your next vehicle, taking a vacation, or making a major home repair.
You'll sometimes hear this called a sinking fund. But whatever you call it, the principle is simple: save a little at a time now so you don't have to borrow later. That takes patience. And in a culture built around instant gratification, patience can be a powerful financial habit.
It can also be an important part of faithful stewardship. Proverbs 21:20 says, "Precious treasure and oil are in a wise man's dwelling, but a foolish man devours it." Wisdom doesn't require us to spend everything available to us today. Sometimes wisdom means looking ahead, preparing patiently, and allowing time to work in our favor.
So, how do you get started? Well, first, you need to define the goal. Let's say you expect to need a new roof and estimate the cost at $7,500. Now you have a specific target. Next, determine how much you can realistically save each month. If you can set aside $500, you'll reach $7,500 in 15 months. If $500 isn't realistic, that's okay. Maybe you start with $100 or $200 and look for opportunities to increase it over time. The important thing is to begin.
You might redirect money from another spending category, put part of a bonus or tax refund toward the goal, or send some of the savings from a canceled subscription into the account. Small amounts add up when you consistently give them time. Each deposit represents progress toward greater financial freedom. Instead of wondering how you'll pay for a major expense when it arrives, you're gradually preparing for it. That can reduce financial stress and give you more flexibility when the time comes to make the purchase.
Next, keep this money separate. Consider opening a dedicated savings account rather than mixing the money with your everyday checking, emergency savings, or other financial goals. When the dollars have a clearly defined purpose, you're less likely to spend them somewhere else.
Then, automate the process if you can. You might schedule a transfer every payday or once a month. That turns saving from something you have to remember into part of your normal financial rhythm.
And remember, your emergency fund and retirement accounts have different jobs. Using retirement money for a purchase today can trigger taxes and, depending on your age and circumstances, possibly penalties—not to mention the loss of future growth. Your retirement savings are meant to provide for a future season, so whenever possible, let them keep doing that job.
As you plan, it can also help you make your goal SMART: Specific, Measurable, Attainable, Relevant, and Timely. Be specific about what you're saving for and how much you'll need. Make it measurable by tracking your progress. Keep it attainable so you don't become discouraged. Make sure the purchase is truly relevant to your priorities, and give yourself a reasonable target date. If you miss the date, that doesn't mean you've failed; adjust the plan and keep going.
The larger lesson is that good stewardship often happens long before the purchase itself. It happens when we patiently prepare, exercise self-control, and make intentional decisions with what God has entrusted to us.
And if you're looking for a place to save toward those future expenses, AdelFi Christian Banking is our recommended banking partner here at Faith & Finance. Along with checking, savings, and credit card options, AdelFi offers a high-yield money market account with an exceptional rate of 4% on balances up to $100,000 for the first year. It's another opportunity to consider not only how you manage your money, but also the financial institutions you choose to work with. You can learn more at faithfi.com/banking.
As you consider whether AdelFi is right for you, here's what you need to know: Membership eligibility is required, and while this institution is not federally insured, each account is privately insured up to $250,000 with American Share Insurance. If you want to learn more, go to faithfi.com/banking. We'll be right back.
SEGMENT 2
Rob West: Thanks for joining us today on Faith and Finance here at American Family Radio. I'm Rob West, and just a moment, we're going to begin taking your calls and questions. The number to get in on the conversation is 800-525-7000. Again, that's 800-525-7000. The calls have already started coming in, but we do have room for you at the moment. Pat in, taking your calls today, and so thankful for our team, Michael and Adam and everyone that makes this possible on a daily basis. But we're thankful for you as well and want to help you think about aligning your financial decisions with God's word, with a biblical worldview. We do that each day as we work through the questions that you're wrestling with in your own life. Whether you are giving, saving, or spending, you're probably doing all three, but there's one that's top of mind today, and we'd love to help you process that through the lens of biblical wisdom. So call right now. We'll begin diving into those questions here in just a moment: 800-525-7000.
In the news today, Congress has approved the bipartisan clergy act, legislation that would give certain pastors and other religious workers a second chance to participate in Social Security. The Senate passed the measure unanimously on September 30th, following a 350-to-5 House vote in April. The bill now awaits President Trump's signature. Under current law, ministers who receive an exemption from Social Security and Medicare taxes on ministerial earnings generally cannot reverse that decision. The clergy act would establish a one-time opportunity to revoke the exemption, with coverage beginning in 2029 or 2030. Participating ministers would begin paying applicable self-employment taxes and could earn credits toward future Social Security and Medicare benefits, subject to eligibility requirements. Guidestone and other Christian organizations have welcomed the legislation, saying it could strengthen retirement security for ministers who opted out earlier in their careers. The IRS would provide additional guidance if the legislation becomes law. This is a really important piece of legislation affecting pastors, will certainly keep you updated along the way.
All right, we're ready to dive into your questions today. Again, that phone number: 800-525-7000. You can call right now. Let's begin. We're going to start in Louisiana today. Kyle, go ahead.
Kyle: How you doing?
Rob West: Doing great. Thanks for your call.
Kyle: I just wanted to see, uh, I wanted to ask a question. Me and my wife are in our mid-20s, and, um, she just went out on maternity leave because we just had a baby. And, uh, so she's right now we're just getting by with my income, and, uh, we're doing all right, but I just wanted to ask you how would be the best way to pay off the debt that we have, uh, with, like, because that's our goal is to be within like 10 or 20 years be completely debt free so that we can start to bless others.
Rob West: Yeah. Well, I love that, Kyle, that you and your wife are thinking that way, both strengthening your financial foundation, but with a goal in mind, not just so you can have more lifestyle spending, but so that you can give. And that's amazing. I think that's, uh, that's really aligning your priorities with the heart of God that we certainly see in scripture.
Um, you know, I think this idea that you would aggressively pay down debt is great. I think first, though, if you haven't already, we really need to stabilize cash flow. So, you know, my priority order, again, some of this may have already been addressed, but let's just talk through it. Um, I would say, you know, let's really base spending on your income alone until she returns to work, um, and then prioritize, of course, housing, utilities, groceries, transportation, insurance, childcare, the essentials. Um, now, you can ask the hospitals, uh, for itemized bills, you can ask them for interest-free payment plans. Medical bills can often be negotiated, so I would say, you know, don't consider putting—and I'm not hearing this from you, but just want to make sure I say this—don't think about putting anything on a credit card.
Um, you're going to want to prioritize the high-interest debt. So, we make minimum payments on all the debts, but then directly apply any extra money toward that high interest or those high-interest balances, again, especially credit cards. And then prepare for childcare costs, you know, before she returns to work. You're really going to need to think through how much additional income you'll actually bring home after childcare and transportation and other work-related expenses. And then we also want to make sure that you've got, uh, a fully funded emergency fund. If not, let's work toward getting those three to six months of essential expenses in emergency savings. And then review your insurance as well. We want to make sure the baby has health coverage, and then think about now an affordable term life policy for both of you in the event, you know, the Lord were to call one of you home. Obviously, there are expenses that would be born as a result of that income going away, and that's where I think an affordable term life insurance policy to get you, you know, enough coverage, plenty of coverage to offset that income so it could be invested and and generate the income that would be lost, is obviously critical. But let me stop there and just get your thoughts on all that.
Kyle: Yeah, that, well, I was actually fortunate enough to marry a wife that actually made me better with money than worse with money. And so I'm actually, you know, before that, I was actually wasting a lot of money on, uh, just, you know, just a lot of dumb stuff that single men do sometimes, and. Sure. But, uh, so, but, you know, we're actually doing pretty good, and she, you know, she knows more about, her parents taught her more about money than I did and everything, so I was blessed with that. And, um, but, uh, we have we do have life insurance, we have, um, health insurance for it's only me, me and our son are on my, uh, health insurance for our job, or for for my job. And then she is going, she's going to go back to work, um, in the next couple months, and so she'll just get health insurance on that from there. And, um, but, yeah, I mean, I think I just wanted to, I guess, ask like what, you know, what we should focus on. I know the quick easy answer is the highest interest, uh, focus on paying that off first, but, you know, if there are any other.
Rob West: Yeah, totally. No, I think you're right on track there and I appreciate that extra context because, you know, you've you've got the life insurance and the health insurance covered. What about emergency savings? Do you guys have a nice cushion equal to as much as six months of expenses?
Kyle: Yeah, we actually have, um, I think we have about 10,000 in savings right now. And, uh, which which would cover, I think, our our house note for about, uh, let's see, for about, I think, four or five months. Okay. Yeah. Maybe even six, I think. I don't, something like that. Yeah. But.
Rob West: Yeah, ideally what you would do is you and I suspect you all have a budget or at least, you know, you have one that perhaps works now. We need to think about what is that budget look like where she's gone back to work, which means income goes up, but also expenses go up, too, as you now have childcare unless there's a family member or friend that's stepping in there. But let's get that budget dialed in for what life is going to look like to the best of your knowledge once she goes back to work. And then whatever that monthly spending is, that times three to six is really the goal there for the emergency savings so that if something unexpected happened, there was a loss of income or a major unexpected expense, you all would have the ability to cover that. Um, but apart from that, let's talk about the debt. What specifically do you have? How much and what type of debt?
Kyle: Uh, we owe on my truck, we owe, um, because I have I have a truck and she has a car. Her car is paid off. She she paid her car off before we got married, but, um, I owe about, or we we we owe about 13,000 on my truck right now. Okay. And then, uh, I think 8,000 is her student loans that we have left.
Rob West: Okay. Great. And then do you have medical debt as well?
Kyle: Yeah, our son was in the NICU for a few days after he was born, and I think that was about 80,000 after all that was finished.
Rob West: Okay, good. Let's talk about that right after the break. Kyle, it sounds like you guys are in great shape. I love the direction you're headed. Let's, uh, let's talk just a bit more, and we appreciate your call today. Stay right there. We'll be right back.
SEGMENT 3
Rob West: Thanks to have you with us today on Faith and Finance here at American Family Radio. I'm Rob West. We're taking your calls and questions today. We've got some lines open: 800-525-7000. Any financial question today, call right now. Coming up in our final segment, Bob Doll stops by. We'll get Bob's take on what's moving the markets today. But first, before the break, we were talking to Kyle in Louisiana.
He's working full time, he's 25, his wife is still on maternity leave, but going to be returning to work in the next couple of months following the birth of their son. Wondering about just the priority order of paying off what they have in front of them. They really are focused on getting to a place where they're living within their means, they're making wise decisions, they want to get out of debt completely as quickly as they can, and they want to be able to increase their giving over time, which is just incredible.
In terms of the priority order, I know you mentioned before the break, Kyle, that you all could have a NICU bill for as much as 80,000. However, you're anticipating that her insurance coverage, the COBRA coverage, was active and would apply retroactively to the baby's birth and the NICU stay. And so, Lord willing, most of that, as you're expecting, will be covered. But I think we need to wait for insurance to process those claims before really making any moves there or agreeing to any kind of payment plan because we need to figure out ultimately what's your responsibility, if anything.
I think in the meantime, let's, you know, focus on building that emergency savings to three to six months worth of total expenses. I would say the the truck loan is probably the least of my concerns. It's a reasonable interest rate of 5.3. The the student loans, I know you didn't know the interest rate, they're probably around between 7 and 9%. That's probably your highest interest loan. I know it's only 8,000, so it'd be great to get that knocked out when you can. So I think your priorities at this point are, let's let's find um let's wait for the medical bills to be processed. Let's build emergency savings, and if you're going to focus on anything, let's focus on knocking out the student loans.
And then, let's also make sure you're contributing to retirement accounts, at least and as much as what will give you any kind of match, either you or she has available to you. But I would say overall you're you're in really great shape, Kyle, and heading in the right direction.
Kyle: Well, thank you. I appreciate that, and I'm sorry if I if I took up too much time.
Rob West: No, this this was great. This is what we do, and, uh, it was a delight to talk to you today. If I can help you at any point along the way, uh, don't hesitate to reach out. Hey, stay on the line. I'm going to send you a copy of Money and Marriage God's Way. I think it'll be a blessing just to build on what you guys have already done. You've done a great job, and I know you said her parents equipped her well to really handle money wisely, and that's been a great influence on you. But I think perhaps this could even take it to the next level, and I'd be happy to send it as our gift. Again, it's called Money and Marriage God's Way by Howard Dayton. We'll put it in the mail, and Kyle, call anytime. Thanks for being on the program today.
Let's go out to Texas. Hi, George. Go ahead.
George: Good morning, Rob.
Rob West: How are you, sir?
George: Oh, I'm doing quite well. How can I help you? My question concerns a letter I received from the IRS. Since you just read the first couple letters, starting 2027, the savers match replaces the savers credit contributions made your retirement plan for IRA. If you qualify, the federal government matches up to 50% of what you contribute to your retirement account each tax year. Now, I'm currently, uh, drawing social security. I'm 70 years old and I am still working. Uh, so would I qualify for that or do I not?
Rob West: Yeah, it's a great question, and this is a change that's coming. You may certainly qualify for the new saver's match, even though you're 70, collecting social security, and still working. Age doesn't disqualify you. Collecting social security doesn't disqualify you, and you certainly can qualify while employed. Your income is one of the biggest factors in determining eligibility. So you have to contribute to an eligible retirement account, like a 401(k) or an IRA. It kicks off, uh, with contributions made in 2027, not 2026. Uh, if you're married filing jointly, your income is going to need to be below 71,000. And so these, that limit uses a special modified adjusted gross income calculation, and your the taxable portion of your social security benefits would count toward that income along with your wages. Um, do you think you may go over that limit?
George: Uh, probably not, but possibly.
Rob West: Okay. Yeah. So that would be the thing to look at. But essentially, I think you described it well. The old credit through 2026 was a tax credit that reduced income taxes owed when you contribute to a retirement account. This new saver's match, the federal government will actually contribute up to $1,000 annually directly into an eligible retirement account like an IRA, uh, or 401(k), and then basically they're matching up to 50% of the first 2,000, so a total of 1,000. And the first matches are expected to hit in 2028 based on your 2027 contributions. But again, it's ultimately going to come down for you to whether you are, you know, under the the income limit. And if you don't know, you could do some estimates with a CPA or have somebody kind of help you think through that. But essentially it would be your wages plus the taxable portion of your social security.
Does that make sense?
George: Uh, yes. One last question. If I do, uh, qualify and everything, how long after I make those contributions do I have to wait before I can draw any out and obtain all of that?
Rob West: Yeah. So, when when could you draw out the match?
George: Well, uh, when will I be able to draw out anything from, uh, the account? Would I would I lose the match?
Rob West: Oh, I see. Yeah, no, it it's essentially, um, you know, it it's based on the contributions for that year. And so as long as you make the the contributions up to 2,000 in that year, then you would get it in 2028, and there would be no limit on when, uh, you could take that out in terms of a timeframe. George, I hope that helps. God bless you, my friend. Thanks for calling. We'll be right back.
SEGMENT 4
Rob West: Great to have you with us today on Faith and Finance here at American Family Radio. I'm Rob West. We do have some lines open today; we're taking your questions. Perhaps you're thinking about paying off some debt, maybe you want to save for the future, perhaps you're wondering how to navigate the market or you want to increase your giving. Maybe for you, it's preparing the next steward. Whatever's on your mind today, we'd love to chat about it with you. Lines are open, our team is standing by, and we'd love to help you process your financial question through the lens of biblical wisdom. The number to call today: 800-525-7000. That's 800-525-7000.
By the way, when it comes to preparing the next steward, our next field guide, How Do I Prepare the Next Steward, is due out in the next two weeks. We are so excited to be able to bring you this incredible tool, building on our first field guide, How Much Money Is Enough, helping you set very practically and biblically enough for your lifestyle and your what we call lifetime accumulation. So how do you set a monthly cap, a finish line for your spending monthly, and then how do you set a lifetime cap for your total accumulation?
Well, field guide number two is all about How Do I Prepare the Next Steward? How do I pass on faith and virtues and relationships and money with the idea that we want to pass wisdom before wealth? There is a variety of types of wealth. A lot of times we think about wealth exclusively around financial wealth, but before that, we need to transfer spiritual wealth. We need to transfer character wealth. We need to transfer relational wealth. How do we do that with intentionality so that when our heirs receive the financial wealth, they're ready for it?
You know, financial wealth requires more than a conversation. It really requires thoughtful preparation and I would say professional guidance. That's why we talk so much about the Certified Kingdom Advisor designation and, of course, properly prepared legal documents. And so we took the time to put together the exercises related to all four types of wealth and then when it gets to the financial wealth, to be able to give you the exercises to shape your intentions before meeting with your financial advisor, your estate planning attorney, your Certified Kingdom Advisor. And it all centers on this idea that money is a tool and not a treasure.
Because before deciding how much to transfer or when to transfer it, we need to begin by defining what we hope that tool, money, will accomplish. And if our next steward is a person—which you might say, well, what else could it be? Well, it could be a ministry or maybe it's both. But if it's a person, we want them to practice with real financial decisions before transferring significant responsibility and then reflect together. And that can show up in giving, saving, and spending. So we start by giving together. Maybe we pray about a need and select an organization and trust them with part of the family's giving budget. Help them to see and celebrate the impact of the gift. You're watching and providing counsel along the way.
Maybe you save together. Choose a goal and save a portion of every dollar received. You can explore how patience and different savings tools can prepare them for a future need and opportunity. And maybe you research investments that align with your values or discuss how investing isn't just about ownership and returns, but can also promote human flourishing and create capital to serve communities. Maybe you spend together as well. Provide a real budget for a purchase—maybe it's a family activity, a home project, or an education expense—and then let them own it and compare the options and make the trade-offs and practice wise limits. So these are the kinds of ideas that we share in this tool about giving together and saving together and spending together, all with the goal of letting the next steward practice financial decisions before all of a sudden, at our passing, maybe there's a six- or seven-figure sum that's transferred to this heir. We want to make sure they're ready to handle it. That's what this new tool is all about: How Do I Prepare the Next Steward. We can't wait to get it in your hands, and, uh, it will be out very, very soon. More details coming in the next few days.
All right, let's head back to the phones. By the way, Bob Doll stops by in the next segment. The market, well, mixed today. We'll go into detail in just a moment. First, let's go out to Dallas. Hi, Lucas, how can I help?
Lucas: Hi, yes, sir. Good aft- or good morning. Thank you for your ministry. I, uh, I listen daily, and, uh, I can't tell you how much, uh, I've learned listening to your show every day. Um, my questions pertains to so, my—my wife and I have both been married before. Um, I'm about to turn 50, she's 46. Um, she has her own job, I have my own job, and we both want to honor the Lord with our finances. Um, we are candidly having some challenges knowing how to combine finances when we both lived very independent lives, um, now bringing those finances together to pay what would have been her bills and my bills that are now our bills, um, and how just I'm just looking for direction or maybe even a—a book resource and just some general guidelines on how to have that conversation when we both had bad experiences in the past with our spouses not being good stewards.
Rob West: Mhm, yeah, yeah. Have you all talked through that just in terms of, you know, what went wrong in the past and kind of each how you're wired uniquely and—and how that affects how you handle money today? Have you all spent some time talking through all of this?
Lucas: We have. Yeah, and we've—we've got a tad bit different viewpoint on—on how to spend money, invest money, allocate money, etc. Um, and, you know, we're both very open um, to doing it the right way and making sure that it's God-centered, um, that it's transparent, and, you know, that we're—we're giving our first fruits as—as we're supposed to. But at the same time, just looking for a point of reference if there is even, whether it be, I know that there's references in the Bible, but at the same time, if there is a book or some sort of a resource that you would recommend so that she and I could look at it, not based on my opinion and her opinion, but a third-party opinion that you might be able to, uh, you know, to to recommend?
Rob West: Yeah, totally. And—and I do have some thoughts on that, and I will share a resource with you. Let me just say, first of all, thanks for listening regularly. I'm delighted the program's been a blessing to you. And I love that you and your wife are approaching this with the desire to honor the Lord, Lucas.
Marriage is, of course, a picture of unity. And Genesis 2:24 reminds us that a husband and wife become one flesh. And that oneness extends to how we approach our finances. Now, that doesn't necessarily mean you have to combine every account immediately, especially in a second marriage. There may be children and existing obligations or estate planning considerations that require some additional conversation and thought and even planning that may or may not involve, you know, legal mechanisms. But I would encourage you to move toward—and this is the big idea—a shared financial vision, even if some of the accounts remain separate.
Now, this idea that you've each come to the marriage relationship with different wirings and different temperaments and different experiences with money, that's perfectly normal. A lot of times, most of the time, I would say, you know, in the marriage relationship, you know, one's a spender, one's a saver, and, uh, you know, so much of the way we handle money today as adults was formed not just in a prior marriage, like in your situation, when we were children. You know, how our mom and dad modeled money management and, you know, a lot of those habits are instilled by the age of nine, the data says.
So we're bringing different personalities, different bends to their marriage relationship. That can be a source of conflict unless we have understanding about where each other is coming from, and we actually use that as a blessing and a benefit to move us toward, I think, a more complete picture of what God desires. We want to start though with grace, not control, and recognize we're different people, and we have experiences from the prior marriages. We want to agree on a shared biblical vision. We have to practice complete financial transparency, and then we need to work toward one household spending plan that drives toward unity. Stay on the line, let's talk a bit more. We'll be right back.
SEGMENT 5
Rob West: Thanks for joining us today on Faith and Finance here at American Family Radio. Coming up in just a moment, Bob Doll stops by. We'll get Bob's take on what's moving the markets as we start a new trading week, never a shortage of data and news to process. Bob will weigh in on all of it straight ahead. But first, before the break, we were talking to Lucas in Dallas. He and his wife were each married previously—this is a second marriage. They want to honor the Lord with their finances. They're coming with different experiences, naturally, uh, even some negative experiences related to money from their prior marriages, and they're struggling with how do we put that together in a way that honors the Lord and allows us to move forward. And, you know, I was sharing before the break just about this biblical picture of marriage that starts with this idea of one flesh from Genesis 2:24. It doesn't mean we combine everything immediately, but we do have honest conversations to say, what does it look like to move forward with a shared financial vision?
And I think that starts with grace, not control, acknowledging those differences. You agree on a shared biblical vision and maybe the question that's on the table is, what does honoring the Lord with our money look like in our marriage? And that's where, you know, as we bring our differences to the table, it's actually a beautiful picture, I think, of a more complete representation of, of Christ and what we see in God's word because we can, you know, I think leverage those differences in a way that's God-honoring as we talk about generosity and debt and saving and lifestyle.
We practice complete financial transparency every step of the way, and it really starts with that one household spending plan, Lucas. And I think that really is the beginning point as you come together and agree on giving and saving and bills and discretionary spending and, you know, maybe each of you has an agreed-upon amount of personal spending money without needing approval for every purchase, and that's just part of the freedom and flexibility, but it's a part of the plan. And so we're counting on it, and I think if you could get that one piece in place, that could drive over time toward even more financial unity as you start putting everything together.
And that's also where I think a certified kingdom advisor could be helpful, somebody who could help you think about, you know, financial planning and retirement planning and the estate side of it as well, but who also understands the heart of God in scripture and could provide that, you know, kind of guidance at the same time. Keep in mind Philippians 2:3 and 4, that we're to put each other's interests ahead of our own and that wise counsel is going to help us succeed in the end of the day at the end of the day.
So, hopefully that at least gives you some just encouragement on where to go from here. And then I'll put, uh, a couple of copies of Howard Dayton's Money and Marriage God's Way in the mail to you as our gift, and I think that could be a great resource for you. Does that all make sense though?
Lucas: Yes, sir, very much, and I really appreciate the time and the call and the advice, very much. Thank you.
Rob West: Absolutely, Lucas. Lord bless you. Thanks for being a faithful listener. Hang on the line, and, uh, we will, uh, we'll get those resources in the mail to you. We'll get your information.
All right, Bob Doll is here. Bob, as, uh, as we start a new trading week, uh, boy, the Middle East back in the news today as, um, we see some attacks in Saudi Arabia that's causing some disruptions, uh, with air travel. But, uh, what do you, what's your take? What are you watching as we start this week?
Bob Doll: Yeah, you certainly can't dismiss the, uh, Middle East and the, uh, the spreading, if I can use that term. Uh, thankfully, oil prices are reasonably well-behaved. Um, we'll watch that carefully, but we don't need this, um, ugly, um, set of circumstances to spread, Rob, as you know. Uh, what are we watching? Well, we are at the front end of, uh, uh, a very vicious pace of earnings releases here over the next three, four weeks, and expectations are high, and let's hope we can meet them. I suspect in large part we will.
Rob West: Yeah, and despite our challenges, Bob, I know your key, number one takeaway for this week's Doll's Deliberations was just the how solid and strong our economy is overall, right?
Bob Doll: It really is. You see that in lots of different places: consumer spending, the manufacturing sector, um, in business investment, capital expenditures. Uh, these are all, um, reasonably strong, Rob, and, uh, so this, uh, hope, um, that, uh, it would slow down so inflation could slow down, not so much, not today.
Rob West: Yeah, no doubt about it. Uh, Bob, uh, you know, at some point, we will see this cycle roll over and we'll have an economic slowdown; um, you know, what is your base case just in terms of, you know, when we might see that happen?
Bob Doll: Yeah, not anytime soon. However, as you point out, at some point, uh, and and the issues that the, uh, those are concerned about the strength of the economy: higher oil prices, the fact that central banks around the world are tightening, interest rates have moved up out the curve, um, these things, um, argue for at some point a slowdown. My guess is we'll see see it sometime in the next, uh, couple of quarters, but unlikely a recession because, uh, consumer net worth is pretty strong, um, business formation is high, productivity growth is improving, credit conditions reasonably good. You put all these things together and you say, uh, we're just going to keep at worst muddling through.
Rob West: Yeah, no doubt. Bob, obviously front and center is always monetary policy, and, uh, that's of course a big question. We got that, uh, recent rate cut. Where do you think we go from here?
Bob Doll: So, so, um, a lot of people say, "Oh, my goodness, the Fed's raised rates, isn't it going to encumber the economy?" Well, interest rates relative to history are still pretty low, Rob. They just got so low and stayed low for so long, we think when you have a five handle on, uh, 10-year Treasury, that that that's, uh, high, not necessarily. Look, are higher interest rates slowing down housing and the mortgage market? Absolutely. What does it put a crimp on, uh, valuations in the stock market? Not really.
Rob West: Yeah. Bob, what about bonds? Obviously, the 10-year getting a lot of attention just because even though maybe it's it's not that high if we look over the long haul, um, you know, it's—it's much higher than it has been, and we've had a rapid ascent here, but what do you take on the, uh, bond market right now?
Bob Doll: Bond market, a lot more interesting than it's been in some time. Um, one of the things we look at is the PE ratio of the stock market, which is 19 times. If you look at that from an earnings yield standpoint, meaning reverse the numerator and denominator, that's 5.26%. That's virtually identical to the yield on a 10-year Treasury. We have not seen that in yield in years. So those that are tempted by, uh, bonds, buying a few, I think is just fine.
Rob West: Yeah, very good. Bob, what sectors are you adding to your portfolio that perhaps have not been present, you know, in the recent past that, uh, look attractive to you?
Bob Doll: Uh, we've been, uh, all year long and continue to add to energy stocks, uh, particularly on weakness, which we haven't had a lot of of late. Uh, we backed off the financial sector some as they did so well, but they corrected in the middle of the year and are far more interesting, so we're adding to those, um, and of course still, uh, owning, uh, a bunch of technology, the oscillation between software and semiconductors keeps us busy.
Rob West: Last question, Bob, give me your take on just where we find ourselves. What's the state of play right now in faith-based investing, specifically?
Bob Doll: Oh, my goodness, um, um, how many hours do I have? Clearly improving, but a long way to go. I was just looking at it, the the amount of money in faith-based compared to all money under management is still less than one half of 1%, but double where it was 10 years ago, which means it's growing fast from a low base. As more and more individuals, more and more financial advisors, more and more institutions are saying, we want to align everything in our life, including our investments, with our faith, with, with our values, and that's causing more and more people to, um, waddle into this space. A lot of them do it slowly, some are just jumping in with both feet and just enjoying it.
Rob West: Well, I think it's only a matter of time, Bob, before this is just normal. It's just how Christians invest. I think we're headed to that place, and clearly, uh, grateful for your leadership in this space.
Bob Doll: Couldn't agree more, like all of life, uh, we, we need to live by the book.
Rob West: That's exactly right. Lord bless you, my friend. Thanks for your time today.
Bob Doll: Thank you.
Rob West: All right. That's Bob Doll, he's CEO and CIO at Crossmark Global Investments. Uh, you can learn more at crossmarkglobal.com. While you're there, be sure to check out, uh, Doll's Deliberations, that's his weekly investment commentary, and, um, I rely on that weekly. It's a great free resource delivered to your inbox, uh, each Monday, and we'll really just give you a nice overview of where do we find ourselves in the market, in the economy, the various sectors, what are the headlines, and then what are Bob's key takeaways, uh, at that moment. Again, crossmarkglobal.com is the place to go.
All right, as we, uh, near the end of the broadcast, let me just say a couple of things. First, thank you. Thank you for being here every day for your kind remarks about the program. What a privilege it is to be invited into your stories through your questions, to be able to help you think about the decisions you're making in your financial life as we line those up, as Bob said, with our values. Here's what we know: at its core, God owns it all, we are stewards—that's a high calling. And here's the question about money: is it a tool, or is it a treasure? If it's a treasure, we're replacing, uh, God with something that is created. Money is good, but it's not a God, and it can't dethrone God. And so when God is in his rightful seat in our lives, as, uh, as creator, as Lord over our lives, and then money takes its rightful place as tool, wow, it's a powerful force for good. Our, our hope and our prayer every day is that we'd be able to instill that big idea while at the same time helping you make practical decisions to move forward in your financial life. Secondly, we don't do this show without you. We're listener-supported, and so if you love the program, I would invite you to be a supporter of the ministry. We're slightly behind a couple of months into our new fiscal year, and so if you'd like to make a one-time gift, that'd be incredible. Just go to faithfi.com/give. That's faithfi.com/give. Also, another enormous way for you to support our work if you love the ministry is to become a partner. We rely on monthly partners to do what we do. It provides a much-needed source of ongoing, uh, support. You can learn more about our partner program when you go to faithfi.com/give. Partners receive every one of our resources as they roll out, our studies, our devotionals, four issues of our magazine, pro access to the app, and a quarterly ministry update. Again, faithfi.com/give.
Big thanks to Adam, Pat, Devin, Michael, and everybody here at Faithfi. Come back and join us tomorrow. We'll see you then. Bye-bye.
One of the simplest ways to stay out of credit card debt is to save up for major purchases before you make them. When you plan ahead for expenses you know are coming, you can pay with money you already have instead of borrowing from tomorrow’s income. On this Faith & Finance on AFR, Rob West will look at a simple way to do that. Then it’s on to calls.
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