Rob West: In the first century BC, Roman historian Sallust said, "Prosperity tries the souls, even of the wise."
I am Rob West. Most people would choose financial prosperity despite its temptations, but what if you're living with financial adversity? Today we'll talk about how to be wise in good times and bad.
And we have lots of great listener questions ahead, but we won't be taking your live calls today because this program is pre-recorded. This is Faith & Finance on American Family Radio. Biblical wisdom for your financial decisions.
When things are going well financially, it's tempting to take credit for your success. This can lead to sins like pride and greed. Adversity has its own set of temptations: self-pity, bitterness, and envy are a few typical responses to hard times, and these aren't godly attitudes either.
There is a better way, of course. Christians are called to live with integrity, no matter the circumstances we face. But how do we do that consistently? Well, according to the Bible, the key to godly living in both good times and bad is wisdom.
Proverbs 1:7 says, "The fear of the Lord is the beginning of knowledge, but fools despise wisdom and discipline." Fear of the Lord isn't about living in dread of punishment; it's about recognizing that He is God and we are not. It means living with deep reverence for His holiness, wisdom, and authority.
When we choose to go our own way apart from Him, it ultimately leads us down a path that brings harm and heartache, not because God is cruel, but because we're stepping outside the life-giving boundaries He's lovingly put in place. Just as good parents set rules to protect their children, God gives us His commands not to restrict us, but to lead us into freedom, peace, and flourishing.
When we understand that God's "no" is always rooted in His love, we begin to see that fearing Him is not about being scared; it's about growing in love, trust, and joyful obedience to the One who created us and knows what's best for us.
Wisdom isn't reserved for the successful or the strong—it's available to anyone who humbly listens to God and trusts His Word. And when we walk in His wisdom, we begin to see its fruit:
· Discernment: Proverbs 2:9 says the wise will "understand what is right and just and fair."
· Guidance: Proverbs 3:6 reminds us that "in all your ways acknowledge him, and he will make your paths straight."
· Blessing: In Proverbs 3:13, we read that "blessed is the man who finds wisdom."
· Good Reputation: In Proverbs 3:35, "the wise inherit honor."
· Protection: Proverbs 16:6 says, "through the fear of the Lord a man avoids evil."
Those are some of the fruits of walking in God's wisdom, and they can take root in your life no matter what financial season you're in.
But what about those who choose to live apart from God's wisdom? Scripture refers to them as fools—not as an insult, but as a sober warning. Proverbs 12:15 says, "The way of fools seems right to them, but the wise listen to advice." In the Bible, a fool is someone who rejects God's wisdom and tries to define good and evil on their own. That path leads to confusion and brokenness.
God's warnings are loving invitations to return to Him. When we follow His wisdom in our finances and in our life, we walk a path that leads to peace, purpose, and lasting joy.
So, how can you follow a path of wisdom in your day-to-day financial decisions?
1. See money and possessions through God's eyes. Scripture reminds us that everything belongs to Him and we're simply stewards of what He has placed in our care. So, the goal isn't to build a certain bank balance; it's to have a heart that is fully surrendered to God. Ask the Holy Spirit to shape your desires, guide your decisions, and help you use His resources in ways that honor Him.
2. Financial wisdom means putting biblical principles into practice. God's Word should shape not only what we do with money, but how we treat people along the way. That means walking in honesty and integrity, dealing fairly with others, and allowing the Holy Spirit to cultivate generosity, humility, and a concern for others in our financial decisions.
3. Pursue contentment. Contentment grows as we trust God with what we have, what we need, and what lies ahead. As we invite Him into our financial lives and learn to depend on His provision, the Holy Spirit helps loosen our grip on comparison and the desire for more. That's why 1 Timothy 6 reminds us that "godliness with contentment is great gain."
Whether you find yourself walking through adversity or enjoying a season of prosperity, you can be confident in God's love, faithfulness, and provision. True financial wisdom isn't determined by your circumstances, but by your willingness to follow God faithfully in every season.
As I said, we're off today, so don't call in. But we've got some great calls lined up in advance, so we'll go to those just around the corner. I'm Rob West, and we'll be right back.
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Rob West: Delighted to have you with us today on Faith and Finance here on American Family Radio. I'm Rob West, your host. Hey, as we think about applying God's wisdom to our financial decisions, you know, one of the key issues that we have to consider is that season of life in retirement. You know, the world would offer a definition, an idea of retirement that I believe really is not in line with the scriptural perspective on retirement. You know, this idea of retiring at 65 and getting a check and retiring to a life of leisure is a fairly modern concept. You know, we really don't see that modeled in scripture except in a very narrow instance around the Levitical priests. God's Word really does not support the idea of retirement that we would see today.
So as we think about it, here's a few perhaps retirement myths that I think you need to be aware of as you consider how you approach this season of life, recognizing that while we all need to be honoring God's call on our life throughout the whole of our life, it doesn't have an expiration, which would mean that we would retire to something and not from something.
First of all, it's this idea, in terms of a retirement myth, that we should never stop being a part of God's workforce. We just change assignments as we age and our circumstances change. However, we have to still plan carefully for that time when our income may be reduced or fixed because we can no longer work.
Another myth is that retirement is all about us. As believers, it's never all about us. Life, including how we live after we retire, is all about Christ and our service to Him.
A third misunderstanding about retirement is that you have to accumulate as big a nest egg as possible. In fact, what's more important is to decide how much is enough, and save for that, and no more.
Another retirement myth is that retirement planning is only for rich people. In fact, everyone should plan for the future. Psalm 90:12 says, "Teach us to number our days, that we may gain a heart of wisdom." Well, wisdom includes prudent planning and saving so that we're out of debt and free to serve the Lord as He calls us in our later years.
And then a final retirement myth is that you can determine your future. Yes, you can make plans, but be careful not to presume, which means you say, "I'll retire at such-and-such a date with this amount of money, my spouse and I will move here and do this or that." Well, James 4 warns against this. It says, "You don't even know what will happen tomorrow. Instead, we ought to say, 'If it's the Lord's will, we will live and do this or that.'"
You know, retirement may not be a big topic in the Bible, but we can still plan wisely for our later years. So whether you're getting ready to retire or still working and raising a family, make your plans. Be on your knees before the Lord, asking Him for wisdom as we submit everything that we have for His use and for His glory as well. Hopefully, that's an encouragement to you today.
Let's dive in. We're going to begin in Oklahoma today. Julie, go right ahead.
Julie: Hi. Yeah, I was just wondering, you said to set aside 3 to 6 months' worth of my income and everything. I'm just trying to figure out like how to build that—whether it's, you know, setting aside 10% of my paycheck or like $100 a month or what do you suggest?
Rob West: Yeah, that's a great question. And, you know, that's where the rubber meets the road, Julie. Because once you have a goal, you know, you could use a percentage approach, but I think what matters more than the exact percentage is really consistency.
So for somebody just starting, I think whether that's an automatic fixed amount from every payday, that's probably what's most important. And how you arrive at that number can be a function of what you have available to get started with, or maybe it is a percentage where you try to solve for a percentage and you dial back your spending in order to do that. But I think whichever method you use to determine the number, the most important key points are: automate that fixed amount every payday, so it's like a bill coming out every time; keep it in a separate savings account; and then build it in stages.
So, for example, maybe if you're just starting out, your first goal is $1,000. And once you get there, celebrate in some modest way, and then let's go toward 1 month of expenses, and then eventually 3 to 6 months of expenses. And don't get discouraged by the final number. If you need $3,000 a month to live, a full 6-month fund is $18,000. That can sound overwhelming, and so I think you want to focus on: what is my next milestone?
Even saving $50 or $100 automated out of every paycheck is a great step in that direction. And if you can, you know, maybe as you see yourself doing that every month, maybe you get excited about trying to get that higher. And that's where we're having to go into the budget and figure out where you're going to have to cut back to do that. But I think the key is, whatever that starting point is, let me go ahead and automate it and treat it like a bill. Does that make sense?
Julie: Okay. That does make sense. I appreciate that.
Rob West: Absolutely, Julie. Thanks for calling today. You know, by the way, I will say, as we talked about this, I got a call from a listener—it's been over a year now—and here's what she said. She said, "Rob, when I started listening to the show, I heard this idea of an emergency fund. I was living paycheck to paycheck, I didn't have any savings." She said, "You know what, I'm going to do this." And it took me a while, it took me the better part of a year to do it, but would you know that to the month I reached my 6-month emergency fund goal, I lost my job. And she said, "That came out of left field. I was not expecting it."
Now, that wasn't the end of the story. Here's what she went on to say. She said, "Rob, because I had that 6 months, I didn't have to immediately go replace the income to keep the lights on and gas in the car and food on the table. I was able to stop and listen to the Lord and discern what was next. And would you know that the Holy Spirit started to do a work in my life, something I had been thinking about for years, but I was able to really pray through it in that season. And I just want you to know that next week, I leave to become a full-time missionary." And she said, "Rob, if I didn't have the ability to listen to the leading of the Lord because my bills were covered with that 6-month emergency fund, I don't think I'd be going." But she said, "I'm now with a sending agency. I'm leaving next week to go start my training, and I will be in another part of the world sharing Jesus full-time." She said, "I just wanted to give testimony to how this is important."
And, you know, that's just one great example. It's not just about being able to keep out of credit card debt, although that's critical. It really is about having the margin to just follow the leading of the Lord, and that's why I think this emergency fund idea is so key.
Now, let me go to Indianapolis. Scott, go right ahead.
Scott: Hi, I've got a question about mortgages. I just got out of a 2.62% mortgage, which is kind of like they're giving you free money.
Rob West: Yeah.
Scott: And now I've moved to Indianapolis, and it looks like I'll be having to take a mortgage for between 6 and 7%. So, I'm 59 years old, I'm probably going to work three or four more years. Does it make sense for me to try to really pay down that mortgage, like with a 15-year mortgage? I'm thinking about cash flow, especially once I retire, or would it be better to just put it on a 30 and, you know, eventually I'll have to sell—I'm not planning on moving. Yeah, so I'm just trying to figure out pluses and minuses of that.
Rob West: Yeah. Well, you're asking the right question, and I can understand how painful it is to give up that 2.62% interest rate, because, you know, that was phenomenal when those were to be had. Unfortunately, we're in a different environment today.
Let's do this. I'm up against a break, Scott, but I want to walk you through this because, you know, I think approaching this, there's a couple of ways to go. One of them is the 30-year where you pay it like a 15, and that can make a lot of sense because even though you're going to have a slightly higher interest rate, you have the ability to pay it like it's a 15 and get all that savings in interest. But if something came that was a little, you know, maybe you had an unexpected event or a loss of a job, you'd have the ability to drop down to that lower 30-year amortized payment if you need to. We'll unpack that right after the break. We'll be right back.
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Rob West: So thankful to have you with us today on Faith and Finance on American Family Radio. I'm Rob West. Why is this an important topic? Why dedicate an hour each day to talking about managing money? Is it so we can enrich ourselves? No, it's because this is a high calling that you and I have been given as managers of the King of Kings' resources. It all belongs to God, and so every program we offer here on American Family Radio is about how you can live with a biblical worldview with confidence, being salt and light in our culture, and being a wise and faithful steward of everything God has entrusted to us: our relationships, and His Word, and our time, and our gifts and talents, and yes, the money that He has entrusted to us. So we want to take you back each day to God's Word to pull out the principles, the big ideas and themes in scripture, and help you apply those to the daily financial decisions you're making.
So before the break, we were talking to Scott in Indianapolis. He had a phenomenal 2.62% interest rate on his home. He's just recently moved to Indianapolis from Louisiana, and so, therefore, he's having to take out another mortgage of around $200,000 for his new house. He's wondering for the best type of mortgage for his age based on the length of time and the interest rate. And what I was saying before the break, Scott, is a lot of times folks, you know, will take out that 30-year mortgage, but pay it like it's a 15, which gives you the flexibility if you ever need to drop down to the lower payment. So therefore, you're voluntarily making those extra principal payments. And if all goes according to plan, you know, and you pay it off aggressively like a 15-year mortgage, you know, that would allow you to build quite a bit of equity and save a bundle in interest.
Now, what cost does that come at? Well, right now, the average mortgage rates, you know, for a 30-year are sitting at around 6.3 to 6 1/2; 15-year, 5.7 to 5.9. So that spread of 0.5 to 0.7% would be what you would have to pay in the form of that, um, you know, that 30-year mortgage versus the 15. And so, you know, again, you're a slightly higher rate, more interest over time, in exchange for a much lower required payment if life changes. And I think, you know, that just gives a lot of people peace of mind to know that they're not locked in at that 15-year payment; they can drop down if they need to. But give me your thoughts on all that.
Scott: Uh, that's a good reminder. I like that idea. Uh, think I'll look into that.
Rob West: Okay. Yeah, and, you know, I mean, I think at the end of the day, you have to decide, you know, if as a disciplined borrower, that flexibility can be worth the extra interest cost. Others say, "No, I'm committed to the 15. I, you know, I can I can keep it in my budget and still, despite the higher interest rate and and so forth, I can still keep it in that 25 to 30% of my take-home pay, and I don't like having to pay that, you know, half point or higher premium." And I think that's just at the end of the day, you know, you're going to have to decide which is more important. But at least that gives you a few things to consider as you're looking for this new loan. Hey, thanks for your call today, Scott. We appreciate you being on the program.
To Susan in Tennessee, go right ahead.
Susan: Um, hi, Rob. Um, I have just, um, inherited, um, a sizable amount of money from, um, my father, um, and, um, received it in January. It is now invested in some, a stock portfolio. Um, I have no debt, which I'm thankful for, um, but I want to I want to tithe out of this. Um, I want to, um, um, just handle it, be a good steward of this money. Um, I've got, you know, gosh, a million a million things I could, you know, I always think about spending it on, but, um, my first question is I have two two basic questions. My first one is, um, to tithe out of this, uh, inheritance, do I just take 10% off the top and give it straight to my church? Or am I, which we are my husband and I currently tithe out of his, um, salary, um, his work, but, um, which is our only, um, basically our only income right now, um, and so what is tithing? I mean, basically, is is that just everything goes to my church, or where at what point can I filter that off to other ministries that I am passionate about? And then, um, we've talked about donor-advised funds and either setting one up for ourselves or going through a foundation or whatever, and that's already set up and doing a donor-advised fund that way. What are the advantages of that, or what are other options do I have to steward this money well?
Rob West: Yeah. Well, these are great questions, Susan. I love that you and your husband are thinking this way as you honor the Lord, not with your—not only with your proportionate giving on your income, which is clearly your increase, but now with this lump-sum inheritance increase, which I would say if if we're giving based on the principle of the tithe, that is based on the increase, and the inheritance would certainly fall into that.
You know, what can we learn from the Old Testament tithes where we see this come in in Genesis and Leviticus and Numbers and Deuteronomy and, you know, many different places? In fact, it it appears the the idea of tithing 15 times, um, in scripture, the word itself was nearly 50 times. Uh, ultimately, there was three types of tithes that were in the Mosaic law: the Levitical tithe, the festival tithe, and the charity tithe. And so we see these different types of giving, and clearly it was, um, you know, we saw it even before the Mosaic law, uh, with a remarkable picture of a God-honoring, you know, holistic stewardship as well.
And, you know, based on these different tithes, you know, we see some things that we can take away: that we give to honor Christ, we give to the local church (that was clearly a part of the Levitical tithe), we give, uh, actually in the, uh, festival tithe for celebrations, um, and we give generously to the poor and the vulnerable.
So, you know, I think although we can the Old Testament clearly points to the tithe, it doesn't offer, I think, for us as New Testament believers a neat, kind of modern-day percentage for believers to follow. But I do think we're to be generous people, because the New Testament clearly teaches giving is to be a response to God's grace. We give freely and joyfully and consistently, and directed to causes that honor God.
So I think you're on the right track here, but I don't think, you know, it's something that needs to be legalistic. I think you and your husband can pray through it and give joyfully as the Lord leads. After the break, I'll give you maybe a framework to think about how to do that. Stay right there; we'll be right back.
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Rob West: It's great to have you with us today on Faith and Finance here on American Family Radio. I'm Rob West. Before the break, we were talking to Susan in Tennessee. She's got a substantial inheritance; it's in a stock portfolio right now—it's a sizable amount. And she'd like to tithe. She and her husband are regular tithers off of her husband's income, giving proportionally to what he receives, and they're wanting to apply that same idea to this inheritance and wondering the best way to do it.
And I think, at the end of the day, biblical generosity, Susan, is more than rules or percentages. And yet, I love the idea of the principle of the tithe as a beginning point for our giving. Randy Alcorn calls it the "training wheels of giving." And clearly that should be, I think as a starting point, directed to the local church, although I will say a fuller understanding of the tithe included other tithes as well. And so I think as long as our giving is a response to God's grace, and it's freely and joyfully given, it's proportionate to our financial status, and directed toward causes that honor God—clearly the local church being one of those—then I think you're free to decide how much, and when, and where you're ultimately going to give.
In terms of the mechanics of it, certainly, you know, one opportunity to get the most money into the kingdom the soonest would be just to say, "Yeah, we're going to give a tenth"—which is what the word tithe means—right off the top. And so, you know, what I would probably do, although you likely got a step-up in basis on the stock portfolio, assuming it's outside of a retirement plan, and so the market value of your cost basis would be equal to the value of those stocks as of the date of death. So you may not have a whole lot in the way of capital gains, but if you decided you wanted to just take 10% of that full inheritance and give it away, giving the stocks themselves equal to a tenth to a donor-advised fund, or to your church, or whatever ministries you'd like, is a great way to do it because if there has been any appreciation in the value of those stocks since the date of death, then you would not have any capital gains tax, and you'd get the full amount of the deduction, or at least the charitable contribution, on what you gave away.
Now, in terms of how to go about that, you could either just send it directly to the ministry or your church and not involve a donor-advised fund. And if you were just doing a single gift to your church, I'd probably do that; the donor-advised fund would be an unnecessary step. But if you decided, "We would like to tithe, and maybe our church is one recipient, but we're going to direct a portion of this to other places," then I would say that's where the donor-advised fund could be a really great tool, because you could transfer the stock shares equal to a tenth of the inheritance into your donor-advised fund, and then with a couple of clicks of a button, you could then direct out from the donor-advised fund sponsor whatever amounts and in whatever timing you want, very simply. And, you know, it makes it really convenient. You get one charitable contribution receipt when the money goes in the donor-advised fund, and then you could grant it out immediately or over time, and it wouldn't matter. And so I would say if you're going to do more than one charity or ministry, and especially if you would like to do it over time and not all at once, then I think that's where the donor-advised fund can be really helpful. But let me stop there and get your thoughts.
Susan: Well, two questions. Thank you for all of that, very helpful. Would it be—is there an advantage of me setting up my own donor-advised fund with an attorney or going through a foundation—Generosity Trust comes to my mind, I know there are a lot, a plethora out there? Is there an advantage to one or the other?
Rob West: Yeah, you don't want to do a foundation that an attorney would create for you. There's a lot of complexity and cost that's just unnecessary. So given what you're talking about, I would set up a donor-advised fund with a donor-advised fund sponsor. So Generosity Trust could be a great one, National Christian Foundation is another one. Either of those I would feel very comfortable with. You can open them in just a matter of minutes online, and there's not really any cost or any time that would be unnecessarily spent. And then once the money hits the account, or once the stocks shares hit the donor-advised fund and are sold, then you could just start directing that money out as quickly as you want it.
Susan: And so if I just transfer the stock, whatever percentage of stock, into the donor-advised fund, if I don't distribute it all in this year, it could still be gaining interest, couldn't it, or would it not?
Rob West: That's exactly right. No, it absolutely would. So as soon as the shares hit the account, you would get the charitable contribution receipt for the total amount, because you've technically given the money away to the donor-advised fund sponsor. But by virtue of it being donor-advised, they don't decide where they want to give it; they wait for you as the advisor to direct it. So you get the full charitable contribution immediately, and then the money would sit there and earn interest. It could even be invested inside the donor-advised fund so that it could grow over time and even give you more money to give away, although I would say the goal is not to grow it, the goal is to get it into God's kingdom, so I wouldn't leave it there simply for the sake of investing it, but that is an option.
Susan: Okay, thank you. Thank you so much. Any other options that you can think of besides a donor-advised fund or a direct payment with one lump sum?
Rob West: Yeah, the only thing would be for some folks looking for income in the fourth quarter of life—and I don't know what your age is—but a charitable gift annuity could be a way where you give a certain amount, and then you get an income stream for life. So some people looking for income and a partial charitable deduction like charitable giving annuities for that reason, but apart from that, I think either the direct gift or the donor-advised fund is going to be the two best options.
Susan: Thank you so much, I really appreciate your advice.
Rob West: Absolutely. Call anytime, Susan. Lord bless you. Let's go to Illinois. Anastasia, how can I help?
Anastasia: Hi, thank you for taking my call.
Rob West: Of course, thanks for calling.
Anastasia: Thanks. I'm 55. I'm fully funded for emergency funds. I'm currently working. I have $265,000 in my 401(k) right now, and probably about maybe $15,000 in my Roth IRA. I have $5,000, and I'm trying to figure out where I can put this.
Rob West: Okay. Yeah, have you thought about adding that to your Roth as a new contribution for this year?
Anastasia: No, I hadn't thought about that.
Rob West: Okay. Yeah, that might be good, because if you feel like you're on track with your 401(k)—meaning, and let me go ahead and ask, I know you said you have roughly $265,000 in there, are you actively putting in through salary deferral additional money?
Anastasia: Yes, definitely.
Rob West: Okay, yeah, great. So if you're on track with what you're putting in your 401(k), and I'm glad you called out that emergency fund fully funded, that's great. I love the fact that you have the Roth IRA, because what we find is that it's best to have both the tax-free and the tax-deferred retirement contributions or plans working for you, because in retirement you'll be able to choose which one makes the most sense depending on your tax structure. And the money in the 401(k)—or excuse me, the Roth—will never be subject to a required minimum.
So I would say if your emergency fund is funded, you don't have any high-interest debt, and you're on track with your 401(k) and taking advantage of any matching, I'd take that $5,000 and put it into the Roth. And then the only other question is just, is it invested in a way that makes sense for your age and risk tolerance, and is it properly diversified? And so perhaps you revisit that with whoever is selecting those investments. But I think the Roth would be a great option for you, Anastasia. Thanks for calling today, we appreciate you being on the program.
We're going to head to a break here in just a moment, but let me remind you, our team is away from the studios today, so don't call in, but we have lined up some great questions in advance. So when we come back, we'll dive into those as we apply God's wisdom to your financial decisions and choices. More calls just around the corner on Faith and Finance—stick around.
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Rob West: Thanks for joining us today on Faith & Finance here on American Family Radio. I'm Rob West. All right, let's head back to the phones to Chicago. Maria, go ahead.
Maria: Rob, thank you for taking my call. Um, I have a question. I want your thoughts. I have right now like 270 in annuities. Um, I just retired last year from teaching. So, and then I have an extra 130. I was thinking of taking 30 out as my emergency, and then I'd have that 100,000 free to do something with. And I wanted to know what you think of um S&P 500s versus like a CD or if there's another investment vehicle that you would, you know, have me look into that you think might be a good option?
Rob West: Yeah, I mean at 61 with your emergency fund, with retirement income from teaching, with $270,000 in an annuity, uh you have a meaningful amount of stability and and a nice amount of guaranteed income built into the plan. So, you know, I think the key question here is, do you need more safety, or do you need more growth? I think it sounds like you're looking for some growth, but perhaps you don't want to put 100% of the risk of the stock market, which is what you'd be doing if you put it all in, let's say, an SP—SPY, the S&P 500 ETF. So, I'd probably opt for maybe a robo-advisor that's going to give you more of a balanced approach. Still use indexes like the S&P 500, but for that stock portion, you know, it wouldn't just be large-cap, which is what you're getting in the S&P 500. It would also include some small-cap, small and medium-cap stocks, which, by the way, have outperformed uh this year, or over the last 12 months, large-cap. Um, and so something like the Russell 1000 would be brought in with a robo-advisor. You'd also get a little bit of international exposure, and international has been performing well and will probably outperform the US just given the incredible run-up we have have seen. And then it would also bring in a bond portion, just because you're nearing or or at retirement, and so there's going to be a bond allocation there, which, as interest rates come down in the next few years, bonds will do well. So, I think rather than just putting it in the 500 large-cap companies here domestically, I like a more balanced, diversified approach that you get from either the Schwab Intelligent Portfolios or maybe the Fidelity Go. Either of those would take a robo, kind of automated approach to building a more diversified portfolio for you, but still very low-cost. And I think that would serve you pretty well for this 100,000. The other option is you go ahead and hire an advisor—somebody who can manage this for you. And if you wanted a Certified Kingdom Advisor there in Chicago, you could go to findac k a.com. It's just ultimately whether you want a more automated, do-it-yourself approach or you want to delegate to an advisor who'd make those decisions for you.
Maria: Okay. All right. Yeah, cuz for I do have Fidelity, so um they were talking to me about a mutual fund for the S S&P 500. And I got a little I understand it. I just with everything going on, I'm like, oh, is this a good idea or should I just do the, you know, the safe way and do a CD or if there's something else. That's all.
Rob West: Well, I think that's where the the robo with—so if you want to stay at Fidelity, their Fidelity Go is their digital robo-advisor. You just answer a few questions and then it builds a strategy. But here's what you could be assured of, is that, you know, at 61, approaching retirement, it's going to incorporate a portfolio, undoubtedly, that would be less risky than you just putting it all in the S&P 500, because it's going to have that bond allocation, perhaps as much as half of the portfolio would be in fixed income. That's going to take some of the volatility out. It's going to include not just the large-cap, but as I said, the small-cap. It's going to include some international. So, you wouldn't be putting all of your eggs in one basket into one type of stock. You would be much more diversified, including that portion that's far more conservative on the fixed income side. So, I would say if you want kind of a do-it-yourself approach and you're at Fidelity, I'd use the Fidelity Go account to uh to allocate that 100k.
Maria: Okay. Thank you. Thank you for your help. Appreciate it.
Rob West: Absolutely. Thanks for your call today. Uh let's uh head to Chicago. Jose, go right ahead.
Jose: Hey. So, I got some questions. Um, I'm in my late 50s. Uh, we have a 14-year-old who's going to private high school, a Christian high school. We have a a younger 10-year-old who's also in Christian high school, but I was um given the news that my employment would be uh eliminated, and I'm trying to figure out some ways or just to get some good advice on on how to move forward. Um, I have a a CD that I've had in uh in the in the bank account forever since a job that I I had 20 years ago that I've never done anything with and don't know how to start to move that or to use that. Uh, we have uh a savings, um like an emergency savings of uh $15,000, and a home that's probably worth 300,000 that we owe 100,000 on. And so, yeah, we just were trying to come up with some good ideas and and some help on what to do.
Rob West: Yeah. Yeah, very good. Well, listen, I'm so sorry to hear that your job's been eliminated. I mean, I think at this point, I'm glad to hear that you've got a little bit of emergency savings. You've also got that that CD that's just sitting there in the bank. I think right now, while you're looking for another job, the best thing to do is just kind of hunker down. You know, I wouldn't do anything with that money. Let's try to preserve as much liquidity as you can, and let's, you know, create a transition budget um and see how long we can keep let this savings last, you know, take advantage of any severance or unemployment, make sure you keep your healthcare coverage in place, and figure out how quickly new employment can happen, and kind of go to a payday budget where, you know, we got the big four: we keep the roof, you know, the house paid, the utilities on, the gas in the car so you can go find another job, and food on the table, and kind of everything else is negotiable. I mean, we want to keep the kids in school and so forth, but uh right now, your full-time job needs to be finding that next one. And I would just kind of preserve whatever cash you have or things that can be converted to cash, like the CD, and let's sit tight. Now, once you restore the income, now it's a matter of saying, "Okay, how do we build up the savings from 15,000 to whatever is equal to three months expenses? You know, do we have any any debt we need to take care of? And then can we start participating in a retirement plan at work?" But that's assuming we get the budget to balance, we've got some margin, you know, and before we do any of that, where you can keep the kids in school and just keep the bills paid. So, I think that's the focus at this point, not, you know, what do we do with that money. I'd leave it right there, and when the CD comes due, move it to savings and just keep yourself as liquid as possible, and let's see how quickly we can replace that income and keep everything else, you know, current at the same time. Uh Chicago, Ephraim, go right ahead.
Ephraim: Yes. Thank you so much, uh Rob. I wanted to ask you about um I don't know, I think I have two questions. One is about digital assets, right? Like I think let's talk about that a little bit. Digital assets, as you know, Bitcoin came in, uh you know, it was the first, you know, ever cryptocurrency we heard of, and it came in. Now, it has about what, six 1.60 trillion in market cap, and Right. it's like it's a new technology. I have very understanding of it, and, you know, it could have good or bad, you know, reputation when it comes to to it, but the numbers don't lie. People really actually put some money down on it, you know? So, starting from zero, now it's selling about what, I'm not I'm not sure about today's price, but yeah, it's 79,000 per coin. So, I want to ask you about, okay, Bitcoin, is it worth Is it still worth investing on, first and foremost, right? And then the second one is like, okay, it's a new cryptocurrency that came—it's not new. It's been there, but it's different than Bitcoin, cause Bitcoin is like a digital gold, right? Like you could reserve values, assets, and then you can move it, you know, instantly, like, you know? Uh I know you can probably elaborate a lot more about um Yes. how much it takes like to move millions, let's say like hundreds or tens of millions from one account to another, like or across the country. It takes a lot of time, right? I I'm pretty sure you probably could elaborate. I would love to if you can elaborate on that one. And but when it comes to digital assets, like for example, XRP, you can move hundreds of millions in just a seconds with so much less money or fees, because it's just directly peer-to-peer. Like it's just you send it to whoever wants to receive it or whoever you have a business with.
Rob West: Sure. So, let me give you some thoughts. Yes, you are right in the sense that, uh you know, Bitcoin has reached, I would say, a mainstream status, um and we've seen institutional players come in. There was big questions about the regulators and how they would deal with Bitcoin, but we've gotten past all that. We now have ETFs based on Bitcoin. Uh we've got uh central banks of the world that are are buying Bitcoin. So, it's here to stay, and I think there's Bitcoin and everything else, and X XRP would fit into the everything else category uh in terms of its even more speculative, volatile. There's big questions about its sustainability. Um but I think Bitcoin is here to stay, including the the blockchain technology underneath it. A lot of people talk about Bitcoin being digital gold because it has a lot of the same attributes that gold does: a store of value, and which protects your purchasing power, and there's a fixed 21 million Bitcoins that will ever be produced. So, it has scarcity built into its DNA. And all that sounds good, and for a long time, we talked about taking a portion of your gold allocation, which we would say no more than 10% in gold, and taking a portion of that and putting it in Bitcoin, maybe up to 3%, but not any more than that because it's still highly speculative and volatile. The problem is, it has not acted like gold. There has been a massive dis- divergence in 2026. I mean, I think we're down, you know, over 20% on the year, while gold has done well, Bitcoin has been selling off. And so it really is not correlated in its price action. And I think what it's looking like is more of a speculative new technology, which is really disconnected from any other major asset class, including gold. So, for that reason, uh you know, I would be very cautious. I think for the average investor, I'd stay away completely. For somebody who's more sophisticated, I would go no more than 3%. And I certainly wouldn't touch anything other than Bitcoin, because again, I think you're moving beyond investing into speculation. Uh XRP is really about, you know, blockchain, but it's also about cross-border payments and bank-to-bank transaction systems. Will that last? Possibly. Uh both have existed for years and have large followings, but nobody can guarantee their long-term role, include especially XRP, because governments, banks, and regulators still have heavy influence, and, you know, there's a lot more that we that we need to know about them. So, I would say in terms of an investment, XRP, no. Bitcoin, possibly, but no more than 3% and only if you can stomach the extreme volatility. Well, we're so grateful for you being here today. Thanks to Sandy, Jim, and Devin. We'll see you tomorrow. Bye-bye.
Announcer: The views and opinions expressed in this broadcast may not necessarily reflect those of the American Family Association or American Family Radio.
Rob West: In the first century BC, Roman historian Sallust said, "Prosperity tries the souls, even of the wise."
I am Rob West. Most people would choose financial prosperity despite its temptations, but what if you're living with financial adversity? Today we'll talk about how to be wise in good times and bad.
And we have lots of great listener questions ahead, but we won't be taking your live calls today because this program is pre-recorded. This is Faith & Finance on American Family Radio. Biblical wisdom for your financial decisions.
When things are going well financially, it's tempting to take credit for your success. This can lead to sins like pride and greed. Adversity has its own set of temptations: self-pity, bitterness, and envy are a few typical responses to hard times, and these aren't godly attitudes either.
There is a better way, of course. Christians are called to live with integrity, no matter the circumstances we face. But how do we do that consistently? Well, according to the Bible, the key to godly living in both good times and bad is wisdom.
Proverbs 1:7 says, "The fear of the Lord is the beginning of knowledge, but fools despise wisdom and discipline." Fear of the Lord isn't about living in dread of punishment; it's about recognizing that He is God and we are not. It means living with deep reverence for His holiness, wisdom, and authority.
When we choose to go our own way apart from Him, it ultimately leads us down a path that brings harm and heartache, not because God is cruel, but because we're stepping outside the life-giving boundaries He's lovingly put in place. Just as good parents set rules to protect their children, God gives us His commands not to restrict us, but to lead us into freedom, peace, and flourishing.
When we understand that God's "no" is always rooted in His love, we begin to see that fearing Him is not about being scared; it's about growing in love, trust, and joyful obedience to the One who created us and knows what's best for us.
Wisdom isn't reserved for the successful or the strong—it's available to anyone who humbly listens to God and trusts His Word. And when we walk in His wisdom, we begin to see its fruit:
· Discernment: Proverbs 2:9 says the wise will "understand what is right and just and fair."
· Guidance: Proverbs 3:6 reminds us that "in all your ways acknowledge him, and he will make your paths straight."
· Blessing: In Proverbs 3:13, we read that "blessed is the man who finds wisdom."
· Good Reputation: In Proverbs 3:35, "the wise inherit honor."
· Protection: Proverbs 16:6 says, "through the fear of the Lord a man avoids evil."
Those are some of the fruits of walking in God's wisdom, and they can take root in your life no matter what financial season you're in.
But what about those who choose to live apart from God's wisdom? Scripture refers to them as fools—not as an insult, but as a sober warning. Proverbs 12:15 says, "The way of fools seems right to them, but the wise listen to advice." In the Bible, a fool is someone who rejects God's wisdom and tries to define good and evil on their own. That path leads to confusion and brokenness.
God's warnings are loving invitations to return to Him. When we follow His wisdom in our finances and in our life, we walk a path that leads to peace, purpose, and lasting joy.
So, how can you follow a path of wisdom in your day-to-day financial decisions?
1. See money and possessions through God's eyes. Scripture reminds us that everything belongs to Him and we're simply stewards of what He has placed in our care. So, the goal isn't to build a certain bank balance; it's to have a heart that is fully surrendered to God. Ask the Holy Spirit to shape your desires, guide your decisions, and help you use His resources in ways that honor Him.
2. Financial wisdom means putting biblical principles into practice. God's Word should shape not only what we do with money, but how we treat people along the way. That means walking in honesty and integrity, dealing fairly with others, and allowing the Holy Spirit to cultivate generosity, humility, and a concern for others in our financial decisions.
3. Pursue contentment. Contentment grows as we trust God with what we have, what we need, and what lies ahead. As we invite Him into our financial lives and learn to depend on His provision, the Holy Spirit helps loosen our grip on comparison and the desire for more. That's why 1 Timothy 6 reminds us that "godliness with contentment is great gain."
Whether you find yourself walking through adversity or enjoying a season of prosperity, you can be confident in God's love, faithfulness, and provision. True financial wisdom isn't determined by your circumstances, but by your willingness to follow God faithfully in every season.
As I said, we're off today, so don't call in. But we've got some great calls lined up in advance, so we'll go to those just around the corner. I'm Rob West, and we'll be right back.
David Wollen: For your walk with Jesus, I'm David Wollen with Haven Today, inviting you to anchor your day in God's word. "Do not be afraid." These words show up over and over throughout the Bible, Old and New Testament. In every generation, God continues speaking these words over His people: "Do not be afraid." It's not hard to understand why repetition is necessary. We are so prone to fear. People fear for their health, their finances, their children, their jobs, the future in general. But biblically, there is only one fear worth your time, and that's the fear of the Lord. If you fear Him, every other fear can be laid to rest. As the Psalm says, "The Lord is on my side; I will not fear. What can man do to me?" Get more daily encouragement for your walk with Jesus at haventoday.org.
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Rob West: Delighted to have you with us today on Faith and Finance here on American Family Radio. I'm Rob West, your host. Hey, as we think about applying God's wisdom to our financial decisions, you know, one of the key issues that we have to consider is that season of life in retirement. You know, the world would offer a definition, an idea of retirement that I believe really is not in line with the scriptural perspective on retirement. You know, this idea of retiring at 65 and getting a check and retiring to a life of leisure is a fairly modern concept. You know, we really don't see that modeled in scripture except in a very narrow instance around the Levitical priests. God's Word really does not support the idea of retirement that we would see today.
So as we think about it, here's a few perhaps retirement myths that I think you need to be aware of as you consider how you approach this season of life, recognizing that while we all need to be honoring God's call on our life throughout the whole of our life, it doesn't have an expiration, which would mean that we would retire to something and not from something.
First of all, it's this idea, in terms of a retirement myth, that we should never stop being a part of God's workforce. We just change assignments as we age and our circumstances change. However, we have to still plan carefully for that time when our income may be reduced or fixed because we can no longer work.
Another myth is that retirement is all about us. As believers, it's never all about us. Life, including how we live after we retire, is all about Christ and our service to Him.
A third misunderstanding about retirement is that you have to accumulate as big a nest egg as possible. In fact, what's more important is to decide how much is enough, and save for that, and no more.
Another retirement myth is that retirement planning is only for rich people. In fact, everyone should plan for the future. Psalm 90:12 says, "Teach us to number our days, that we may gain a heart of wisdom." Well, wisdom includes prudent planning and saving so that we're out of debt and free to serve the Lord as He calls us in our later years.
And then a final retirement myth is that you can determine your future. Yes, you can make plans, but be careful not to presume, which means you say, "I'll retire at such-and-such a date with this amount of money, my spouse and I will move here and do this or that." Well, James 4 warns against this. It says, "You don't even know what will happen tomorrow. Instead, we ought to say, 'If it's the Lord's will, we will live and do this or that.'"
You know, retirement may not be a big topic in the Bible, but we can still plan wisely for our later years. So whether you're getting ready to retire or still working and raising a family, make your plans. Be on your knees before the Lord, asking Him for wisdom as we submit everything that we have for His use and for His glory as well. Hopefully, that's an encouragement to you today.
Let's dive in. We're going to begin in Oklahoma today. Julie, go right ahead.
Julie: Hi. Yeah, I was just wondering, you said to set aside 3 to 6 months' worth of my income and everything. I'm just trying to figure out like how to build that—whether it's, you know, setting aside 10% of my paycheck or like $100 a month or what do you suggest?
Rob West: Yeah, that's a great question. And, you know, that's where the rubber meets the road, Julie. Because once you have a goal, you know, you could use a percentage approach, but I think what matters more than the exact percentage is really consistency.
So for somebody just starting, I think whether that's an automatic fixed amount from every payday, that's probably what's most important. And how you arrive at that number can be a function of what you have available to get started with, or maybe it is a percentage where you try to solve for a percentage and you dial back your spending in order to do that. But I think whichever method you use to determine the number, the most important key points are: automate that fixed amount every payday, so it's like a bill coming out every time; keep it in a separate savings account; and then build it in stages.
So, for example, maybe if you're just starting out, your first goal is $1,000. And once you get there, celebrate in some modest way, and then let's go toward 1 month of expenses, and then eventually 3 to 6 months of expenses. And don't get discouraged by the final number. If you need $3,000 a month to live, a full 6-month fund is $18,000. That can sound overwhelming, and so I think you want to focus on: what is my next milestone?
Even saving $50 or $100 automated out of every paycheck is a great step in that direction. And if you can, you know, maybe as you see yourself doing that every month, maybe you get excited about trying to get that higher. And that's where we're having to go into the budget and figure out where you're going to have to cut back to do that. But I think the key is, whatever that starting point is, let me go ahead and automate it and treat it like a bill. Does that make sense?
Julie: Okay. That does make sense. I appreciate that.
Rob West: Absolutely, Julie. Thanks for calling today. You know, by the way, I will say, as we talked about this, I got a call from a listener—it's been over a year now—and here's what she said. She said, "Rob, when I started listening to the show, I heard this idea of an emergency fund. I was living paycheck to paycheck, I didn't have any savings." She said, "You know what, I'm going to do this." And it took me a while, it took me the better part of a year to do it, but would you know that to the month I reached my 6-month emergency fund goal, I lost my job. And she said, "That came out of left field. I was not expecting it."
Now, that wasn't the end of the story. Here's what she went on to say. She said, "Rob, because I had that 6 months, I didn't have to immediately go replace the income to keep the lights on and gas in the car and food on the table. I was able to stop and listen to the Lord and discern what was next. And would you know that the Holy Spirit started to do a work in my life, something I had been thinking about for years, but I was able to really pray through it in that season. And I just want you to know that next week, I leave to become a full-time missionary." And she said, "Rob, if I didn't have the ability to listen to the leading of the Lord because my bills were covered with that 6-month emergency fund, I don't think I'd be going." But she said, "I'm now with a sending agency. I'm leaving next week to go start my training, and I will be in another part of the world sharing Jesus full-time." She said, "I just wanted to give testimony to how this is important."
And, you know, that's just one great example. It's not just about being able to keep out of credit card debt, although that's critical. It really is about having the margin to just follow the leading of the Lord, and that's why I think this emergency fund idea is so key.
Now, let me go to Indianapolis. Scott, go right ahead.
Scott: Hi, I've got a question about mortgages. I just got out of a 2.62% mortgage, which is kind of like they're giving you free money.
Rob West: Yeah.
Scott: And now I've moved to Indianapolis, and it looks like I'll be having to take a mortgage for between 6 and 7%. So, I'm 59 years old, I'm probably going to work three or four more years. Does it make sense for me to try to really pay down that mortgage, like with a 15-year mortgage? I'm thinking about cash flow, especially once I retire, or would it be better to just put it on a 30 and, you know, eventually I'll have to sell—I'm not planning on moving. Yeah, so I'm just trying to figure out pluses and minuses of that.
Rob West: Yeah. Well, you're asking the right question, and I can understand how painful it is to give up that 2.62% interest rate, because, you know, that was phenomenal when those were to be had. Unfortunately, we're in a different environment today.
Let's do this. I'm up against a break, Scott, but I want to walk you through this because, you know, I think approaching this, there's a couple of ways to go. One of them is the 30-year where you pay it like a 15, and that can make a lot of sense because even though you're going to have a slightly higher interest rate, you have the ability to pay it like it's a 15 and get all that savings in interest. But if something came that was a little, you know, maybe you had an unexpected event or a loss of a job, you'd have the ability to drop down to that lower 30-year amortized payment if you need to. We'll unpack that right after the break. We'll be right back.
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Rob West: So thankful to have you with us today on Faith and Finance on American Family Radio. I'm Rob West. Why is this an important topic? Why dedicate an hour each day to talking about managing money? Is it so we can enrich ourselves? No, it's because this is a high calling that you and I have been given as managers of the King of Kings' resources. It all belongs to God, and so every program we offer here on American Family Radio is about how you can live with a biblical worldview with confidence, being salt and light in our culture, and being a wise and faithful steward of everything God has entrusted to us: our relationships, and His Word, and our time, and our gifts and talents, and yes, the money that He has entrusted to us. So we want to take you back each day to God's Word to pull out the principles, the big ideas and themes in scripture, and help you apply those to the daily financial decisions you're making.
So before the break, we were talking to Scott in Indianapolis. He had a phenomenal 2.62% interest rate on his home. He's just recently moved to Indianapolis from Louisiana, and so, therefore, he's having to take out another mortgage of around $200,000 for his new house. He's wondering for the best type of mortgage for his age based on the length of time and the interest rate. And what I was saying before the break, Scott, is a lot of times folks, you know, will take out that 30-year mortgage, but pay it like it's a 15, which gives you the flexibility if you ever need to drop down to the lower payment. So therefore, you're voluntarily making those extra principal payments. And if all goes according to plan, you know, and you pay it off aggressively like a 15-year mortgage, you know, that would allow you to build quite a bit of equity and save a bundle in interest.
Now, what cost does that come at? Well, right now, the average mortgage rates, you know, for a 30-year are sitting at around 6.3 to 6 1/2; 15-year, 5.7 to 5.9. So that spread of 0.5 to 0.7% would be what you would have to pay in the form of that, um, you know, that 30-year mortgage versus the 15. And so, you know, again, you're a slightly higher rate, more interest over time, in exchange for a much lower required payment if life changes. And I think, you know, that just gives a lot of people peace of mind to know that they're not locked in at that 15-year payment; they can drop down if they need to. But give me your thoughts on all that.
Scott: Uh, that's a good reminder. I like that idea. Uh, think I'll look into that.
Rob West: Okay. Yeah, and, you know, I mean, I think at the end of the day, you have to decide, you know, if as a disciplined borrower, that flexibility can be worth the extra interest cost. Others say, "No, I'm committed to the 15. I, you know, I can I can keep it in my budget and still, despite the higher interest rate and and so forth, I can still keep it in that 25 to 30% of my take-home pay, and I don't like having to pay that, you know, half point or higher premium." And I think that's just at the end of the day, you know, you're going to have to decide which is more important. But at least that gives you a few things to consider as you're looking for this new loan. Hey, thanks for your call today, Scott. We appreciate you being on the program.
To Susan in Tennessee, go right ahead.
Susan: Um, hi, Rob. Um, I have just, um, inherited, um, a sizable amount of money from, um, my father, um, and, um, received it in January. It is now invested in some, a stock portfolio. Um, I have no debt, which I'm thankful for, um, but I want to I want to tithe out of this. Um, I want to, um, um, just handle it, be a good steward of this money. Um, I've got, you know, gosh, a million a million things I could, you know, I always think about spending it on, but, um, my first question is I have two two basic questions. My first one is, um, to tithe out of this, uh, inheritance, do I just take 10% off the top and give it straight to my church? Or am I, which we are my husband and I currently tithe out of his, um, salary, um, his work, but, um, which is our only, um, basically our only income right now, um, and so what is tithing? I mean, basically, is is that just everything goes to my church, or where at what point can I filter that off to other ministries that I am passionate about? And then, um, we've talked about donor-advised funds and either setting one up for ourselves or going through a foundation or whatever, and that's already set up and doing a donor-advised fund that way. What are the advantages of that, or what are other options do I have to steward this money well?
Rob West: Yeah. Well, these are great questions, Susan. I love that you and your husband are thinking this way as you honor the Lord, not with your—not only with your proportionate giving on your income, which is clearly your increase, but now with this lump-sum inheritance increase, which I would say if if we're giving based on the principle of the tithe, that is based on the increase, and the inheritance would certainly fall into that.
You know, what can we learn from the Old Testament tithes where we see this come in in Genesis and Leviticus and Numbers and Deuteronomy and, you know, many different places? In fact, it it appears the the idea of tithing 15 times, um, in scripture, the word itself was nearly 50 times. Uh, ultimately, there was three types of tithes that were in the Mosaic law: the Levitical tithe, the festival tithe, and the charity tithe. And so we see these different types of giving, and clearly it was, um, you know, we saw it even before the Mosaic law, uh, with a remarkable picture of a God-honoring, you know, holistic stewardship as well.
And, you know, based on these different tithes, you know, we see some things that we can take away: that we give to honor Christ, we give to the local church (that was clearly a part of the Levitical tithe), we give, uh, actually in the, uh, festival tithe for celebrations, um, and we give generously to the poor and the vulnerable.
So, you know, I think although we can the Old Testament clearly points to the tithe, it doesn't offer, I think, for us as New Testament believers a neat, kind of modern-day percentage for believers to follow. But I do think we're to be generous people, because the New Testament clearly teaches giving is to be a response to God's grace. We give freely and joyfully and consistently, and directed to causes that honor God.
So I think you're on the right track here, but I don't think, you know, it's something that needs to be legalistic. I think you and your husband can pray through it and give joyfully as the Lord leads. After the break, I'll give you maybe a framework to think about how to do that. Stay right there; we'll be right back.
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Rob West: It's great to have you with us today on Faith and Finance here on American Family Radio. I'm Rob West. Before the break, we were talking to Susan in Tennessee. She's got a substantial inheritance; it's in a stock portfolio right now—it's a sizable amount. And she'd like to tithe. She and her husband are regular tithers off of her husband's income, giving proportionally to what he receives, and they're wanting to apply that same idea to this inheritance and wondering the best way to do it.
And I think, at the end of the day, biblical generosity, Susan, is more than rules or percentages. And yet, I love the idea of the principle of the tithe as a beginning point for our giving. Randy Alcorn calls it the "training wheels of giving." And clearly that should be, I think as a starting point, directed to the local church, although I will say a fuller understanding of the tithe included other tithes as well. And so I think as long as our giving is a response to God's grace, and it's freely and joyfully given, it's proportionate to our financial status, and directed toward causes that honor God—clearly the local church being one of those—then I think you're free to decide how much, and when, and where you're ultimately going to give.
In terms of the mechanics of it, certainly, you know, one opportunity to get the most money into the kingdom the soonest would be just to say, "Yeah, we're going to give a tenth"—which is what the word tithe means—right off the top. And so, you know, what I would probably do, although you likely got a step-up in basis on the stock portfolio, assuming it's outside of a retirement plan, and so the market value of your cost basis would be equal to the value of those stocks as of the date of death. So you may not have a whole lot in the way of capital gains, but if you decided you wanted to just take 10% of that full inheritance and give it away, giving the stocks themselves equal to a tenth to a donor-advised fund, or to your church, or whatever ministries you'd like, is a great way to do it because if there has been any appreciation in the value of those stocks since the date of death, then you would not have any capital gains tax, and you'd get the full amount of the deduction, or at least the charitable contribution, on what you gave away.
Now, in terms of how to go about that, you could either just send it directly to the ministry or your church and not involve a donor-advised fund. And if you were just doing a single gift to your church, I'd probably do that; the donor-advised fund would be an unnecessary step. But if you decided, "We would like to tithe, and maybe our church is one recipient, but we're going to direct a portion of this to other places," then I would say that's where the donor-advised fund could be a really great tool, because you could transfer the stock shares equal to a tenth of the inheritance into your donor-advised fund, and then with a couple of clicks of a button, you could then direct out from the donor-advised fund sponsor whatever amounts and in whatever timing you want, very simply. And, you know, it makes it really convenient. You get one charitable contribution receipt when the money goes in the donor-advised fund, and then you could grant it out immediately or over time, and it wouldn't matter. And so I would say if you're going to do more than one charity or ministry, and especially if you would like to do it over time and not all at once, then I think that's where the donor-advised fund can be really helpful. But let me stop there and get your thoughts.
Susan: Well, two questions. Thank you for all of that, very helpful. Would it be—is there an advantage of me setting up my own donor-advised fund with an attorney or going through a foundation—Generosity Trust comes to my mind, I know there are a lot, a plethora out there? Is there an advantage to one or the other?
Rob West: Yeah, you don't want to do a foundation that an attorney would create for you. There's a lot of complexity and cost that's just unnecessary. So given what you're talking about, I would set up a donor-advised fund with a donor-advised fund sponsor. So Generosity Trust could be a great one, National Christian Foundation is another one. Either of those I would feel very comfortable with. You can open them in just a matter of minutes online, and there's not really any cost or any time that would be unnecessarily spent. And then once the money hits the account, or once the stocks shares hit the donor-advised fund and are sold, then you could just start directing that money out as quickly as you want it.
Susan: And so if I just transfer the stock, whatever percentage of stock, into the donor-advised fund, if I don't distribute it all in this year, it could still be gaining interest, couldn't it, or would it not?
Rob West: That's exactly right. No, it absolutely would. So as soon as the shares hit the account, you would get the charitable contribution receipt for the total amount, because you've technically given the money away to the donor-advised fund sponsor. But by virtue of it being donor-advised, they don't decide where they want to give it; they wait for you as the advisor to direct it. So you get the full charitable contribution immediately, and then the money would sit there and earn interest. It could even be invested inside the donor-advised fund so that it could grow over time and even give you more money to give away, although I would say the goal is not to grow it, the goal is to get it into God's kingdom, so I wouldn't leave it there simply for the sake of investing it, but that is an option.
Susan: Okay, thank you. Thank you so much. Any other options that you can think of besides a donor-advised fund or a direct payment with one lump sum?
Rob West: Yeah, the only thing would be for some folks looking for income in the fourth quarter of life—and I don't know what your age is—but a charitable gift annuity could be a way where you give a certain amount, and then you get an income stream for life. So some people looking for income and a partial charitable deduction like charitable giving annuities for that reason, but apart from that, I think either the direct gift or the donor-advised fund is going to be the two best options.
Susan: Thank you so much, I really appreciate your advice.
Rob West: Absolutely. Call anytime, Susan. Lord bless you. Let's go to Illinois. Anastasia, how can I help?
Anastasia: Hi, thank you for taking my call.
Rob West: Of course, thanks for calling.
Anastasia: Thanks. I'm 55. I'm fully funded for emergency funds. I'm currently working. I have $265,000 in my 401(k) right now, and probably about maybe $15,000 in my Roth IRA. I have $5,000, and I'm trying to figure out where I can put this.
Rob West: Okay. Yeah, have you thought about adding that to your Roth as a new contribution for this year?
Anastasia: No, I hadn't thought about that.
Rob West: Okay. Yeah, that might be good, because if you feel like you're on track with your 401(k)—meaning, and let me go ahead and ask, I know you said you have roughly $265,000 in there, are you actively putting in through salary deferral additional money?
Anastasia: Yes, definitely.
Rob West: Okay, yeah, great. So if you're on track with what you're putting in your 401(k), and I'm glad you called out that emergency fund fully funded, that's great. I love the fact that you have the Roth IRA, because what we find is that it's best to have both the tax-free and the tax-deferred retirement contributions or plans working for you, because in retirement you'll be able to choose which one makes the most sense depending on your tax structure. And the money in the 401(k)—or excuse me, the Roth—will never be subject to a required minimum.
So I would say if your emergency fund is funded, you don't have any high-interest debt, and you're on track with your 401(k) and taking advantage of any matching, I'd take that $5,000 and put it into the Roth. And then the only other question is just, is it invested in a way that makes sense for your age and risk tolerance, and is it properly diversified? And so perhaps you revisit that with whoever is selecting those investments. But I think the Roth would be a great option for you, Anastasia. Thanks for calling today, we appreciate you being on the program.
We're going to head to a break here in just a moment, but let me remind you, our team is away from the studios today, so don't call in, but we have lined up some great questions in advance. So when we come back, we'll dive into those as we apply God's wisdom to your financial decisions and choices. More calls just around the corner on Faith and Finance—stick around.
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Rob West: Thanks for joining us today on Faith & Finance here on American Family Radio. I'm Rob West. All right, let's head back to the phones to Chicago. Maria, go ahead.
Maria: Rob, thank you for taking my call. Um, I have a question. I want your thoughts. I have right now like 270 in annuities. Um, I just retired last year from teaching. So, and then I have an extra 130. I was thinking of taking 30 out as my emergency, and then I'd have that 100,000 free to do something with. And I wanted to know what you think of um S&P 500s versus like a CD or if there's another investment vehicle that you would, you know, have me look into that you think might be a good option?
Rob West: Yeah, I mean at 61 with your emergency fund, with retirement income from teaching, with $270,000 in an annuity, uh you have a meaningful amount of stability and and a nice amount of guaranteed income built into the plan. So, you know, I think the key question here is, do you need more safety, or do you need more growth? I think it sounds like you're looking for some growth, but perhaps you don't want to put 100% of the risk of the stock market, which is what you'd be doing if you put it all in, let's say, an SP—SPY, the S&P 500 ETF. So, I'd probably opt for maybe a robo-advisor that's going to give you more of a balanced approach. Still use indexes like the S&P 500, but for that stock portion, you know, it wouldn't just be large-cap, which is what you're getting in the S&P 500. It would also include some small-cap, small and medium-cap stocks, which, by the way, have outperformed uh this year, or over the last 12 months, large-cap. Um, and so something like the Russell 1000 would be brought in with a robo-advisor. You'd also get a little bit of international exposure, and international has been performing well and will probably outperform the US just given the incredible run-up we have have seen. And then it would also bring in a bond portion, just because you're nearing or or at retirement, and so there's going to be a bond allocation there, which, as interest rates come down in the next few years, bonds will do well. So, I think rather than just putting it in the 500 large-cap companies here domestically, I like a more balanced, diversified approach that you get from either the Schwab Intelligent Portfolios or maybe the Fidelity Go. Either of those would take a robo, kind of automated approach to building a more diversified portfolio for you, but still very low-cost. And I think that would serve you pretty well for this 100,000. The other option is you go ahead and hire an advisor—somebody who can manage this for you. And if you wanted a Certified Kingdom Advisor there in Chicago, you could go to findac k a.com. It's just ultimately whether you want a more automated, do-it-yourself approach or you want to delegate to an advisor who'd make those decisions for you.
Maria: Okay. All right. Yeah, cuz for I do have Fidelity, so um they were talking to me about a mutual fund for the S S&P 500. And I got a little I understand it. I just with everything going on, I'm like, oh, is this a good idea or should I just do the, you know, the safe way and do a CD or if there's something else. That's all.
Rob West: Well, I think that's where the the robo with—so if you want to stay at Fidelity, their Fidelity Go is their digital robo-advisor. You just answer a few questions and then it builds a strategy. But here's what you could be assured of, is that, you know, at 61, approaching retirement, it's going to incorporate a portfolio, undoubtedly, that would be less risky than you just putting it all in the S&P 500, because it's going to have that bond allocation, perhaps as much as half of the portfolio would be in fixed income. That's going to take some of the volatility out. It's going to include not just the large-cap, but as I said, the small-cap. It's going to include some international. So, you wouldn't be putting all of your eggs in one basket into one type of stock. You would be much more diversified, including that portion that's far more conservative on the fixed income side. So, I would say if you want kind of a do-it-yourself approach and you're at Fidelity, I'd use the Fidelity Go account to uh to allocate that 100k.
Maria: Okay. Thank you. Thank you for your help. Appreciate it.
Rob West: Absolutely. Thanks for your call today. Uh let's uh head to Chicago. Jose, go right ahead.
Jose: Hey. So, I got some questions. Um, I'm in my late 50s. Uh, we have a 14-year-old who's going to private high school, a Christian high school. We have a a younger 10-year-old who's also in Christian high school, but I was um given the news that my employment would be uh eliminated, and I'm trying to figure out some ways or just to get some good advice on on how to move forward. Um, I have a a CD that I've had in uh in the in the bank account forever since a job that I I had 20 years ago that I've never done anything with and don't know how to start to move that or to use that. Uh, we have uh a savings, um like an emergency savings of uh $15,000, and a home that's probably worth 300,000 that we owe 100,000 on. And so, yeah, we just were trying to come up with some good ideas and and some help on what to do.
Rob West: Yeah. Yeah, very good. Well, listen, I'm so sorry to hear that your job's been eliminated. I mean, I think at this point, I'm glad to hear that you've got a little bit of emergency savings. You've also got that that CD that's just sitting there in the bank. I think right now, while you're looking for another job, the best thing to do is just kind of hunker down. You know, I wouldn't do anything with that money. Let's try to preserve as much liquidity as you can, and let's, you know, create a transition budget um and see how long we can keep let this savings last, you know, take advantage of any severance or unemployment, make sure you keep your healthcare coverage in place, and figure out how quickly new employment can happen, and kind of go to a payday budget where, you know, we got the big four: we keep the roof, you know, the house paid, the utilities on, the gas in the car so you can go find another job, and food on the table, and kind of everything else is negotiable. I mean, we want to keep the kids in school and so forth, but uh right now, your full-time job needs to be finding that next one. And I would just kind of preserve whatever cash you have or things that can be converted to cash, like the CD, and let's sit tight. Now, once you restore the income, now it's a matter of saying, "Okay, how do we build up the savings from 15,000 to whatever is equal to three months expenses? You know, do we have any any debt we need to take care of? And then can we start participating in a retirement plan at work?" But that's assuming we get the budget to balance, we've got some margin, you know, and before we do any of that, where you can keep the kids in school and just keep the bills paid. So, I think that's the focus at this point, not, you know, what do we do with that money. I'd leave it right there, and when the CD comes due, move it to savings and just keep yourself as liquid as possible, and let's see how quickly we can replace that income and keep everything else, you know, current at the same time. Uh Chicago, Ephraim, go right ahead.
Ephraim: Yes. Thank you so much, uh Rob. I wanted to ask you about um I don't know, I think I have two questions. One is about digital assets, right? Like I think let's talk about that a little bit. Digital assets, as you know, Bitcoin came in, uh you know, it was the first, you know, ever cryptocurrency we heard of, and it came in. Now, it has about what, six 1.60 trillion in market cap, and Right. it's like it's a new technology. I have very understanding of it, and, you know, it could have good or bad, you know, reputation when it comes to to it, but the numbers don't lie. People really actually put some money down on it, you know? So, starting from zero, now it's selling about what, I'm not I'm not sure about today's price, but yeah, it's 79,000 per coin. So, I want to ask you about, okay, Bitcoin, is it worth Is it still worth investing on, first and foremost, right? And then the second one is like, okay, it's a new cryptocurrency that came—it's not new. It's been there, but it's different than Bitcoin, cause Bitcoin is like a digital gold, right? Like you could reserve values, assets, and then you can move it, you know, instantly, like, you know? Uh I know you can probably elaborate a lot more about um Yes. how much it takes like to move millions, let's say like hundreds or tens of millions from one account to another, like or across the country. It takes a lot of time, right? I I'm pretty sure you probably could elaborate. I would love to if you can elaborate on that one. And but when it comes to digital assets, like for example, XRP, you can move hundreds of millions in just a seconds with so much less money or fees, because it's just directly peer-to-peer. Like it's just you send it to whoever wants to receive it or whoever you have a business with.
Rob West: Sure. So, let me give you some thoughts. Yes, you are right in the sense that, uh you know, Bitcoin has reached, I would say, a mainstream status, um and we've seen institutional players come in. There was big questions about the regulators and how they would deal with Bitcoin, but we've gotten past all that. We now have ETFs based on Bitcoin. Uh we've got uh central banks of the world that are are buying Bitcoin. So, it's here to stay, and I think there's Bitcoin and everything else, and X XRP would fit into the everything else category uh in terms of its even more speculative, volatile. There's big questions about its sustainability. Um but I think Bitcoin is here to stay, including the the blockchain technology underneath it. A lot of people talk about Bitcoin being digital gold because it has a lot of the same attributes that gold does: a store of value, and which protects your purchasing power, and there's a fixed 21 million Bitcoins that will ever be produced. So, it has scarcity built into its DNA. And all that sounds good, and for a long time, we talked about taking a portion of your gold allocation, which we would say no more than 10% in gold, and taking a portion of that and putting it in Bitcoin, maybe up to 3%, but not any more than that because it's still highly speculative and volatile. The problem is, it has not acted like gold. There has been a massive dis- divergence in 2026. I mean, I think we're down, you know, over 20% on the year, while gold has done well, Bitcoin has been selling off. And so it really is not correlated in its price action. And I think what it's looking like is more of a speculative new technology, which is really disconnected from any other major asset class, including gold. So, for that reason, uh you know, I would be very cautious. I think for the average investor, I'd stay away completely. For somebody who's more sophisticated, I would go no more than 3%. And I certainly wouldn't touch anything other than Bitcoin, because again, I think you're moving beyond investing into speculation. Uh XRP is really about, you know, blockchain, but it's also about cross-border payments and bank-to-bank transaction systems. Will that last? Possibly. Uh both have existed for years and have large followings, but nobody can guarantee their long-term role, include especially XRP, because governments, banks, and regulators still have heavy influence, and, you know, there's a lot more that we that we need to know about them. So, I would say in terms of an investment, XRP, no. Bitcoin, possibly, but no more than 3% and only if you can stomach the extreme volatility. Well, we're so grateful for you being here today. Thanks to Sandy, Jim, and Devin. We'll see you tomorrow. Bye-bye.
Announcer: The views and opinions expressed in this broadcast may not necessarily reflect those of the American Family Association or American Family Radio.
In the First Century B.C., Roman historian Sallust said, “Prosperity tries the souls, even of the wise.” Most people would choose financial prosperity despite its temptations. But what if you’re living with financial adversity? On this Faith & Finance on AFR, Rob West will talk about how to be wise in good times and bad. Then, it's on to calls.
(00:00) Rob West talks about following Jesus in every financial season
(11:48) Caller Julie: How to build an emergency savings
(15:36) Caller Scott: Balancing mortgage payoff and cash flow
(21:29) Continue conversation with Scott on whether to take out 15 or 30 year mortgage
(23:55) Caller Susan: Managing how to tithe on a sizeable inheritance that is in investments
(31:20) Continue conversation with Susan about her sizable inheritance and how to give tithe from it
(37:49) Caller Anastacia: Has retirement accounts, trying to decide best place to put $5,000
(42:20) Caller Maria: Investing in S&P 500 vs a CD
(46:27) Caller Jose: Developing a family financial plan since his job is being eliminated
(49:25) Caller Ephraim: Bitcoin and blockchain technology
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