Rob West: Our financial lives stand or fall on the foundation we choose. I am Rob West. Jesus said the wise man built his house on the rock so it could stand when the storm came. The same is true of our financial lives. John Cortines joins us today to show us how to build a financial house on the wisdom of God's Word, and then we'll take your calls at 800-525-7000. That's 800-525-7000. This is Faith and Finance on American Family Radio. Biblical wisdom for your financial journey.
Well, we always enjoy having my friend John Cortines on the program. John is a family office advisor with Blue Trust and a regular FaithFi contributor. He's also the co-author of both God and Money and True Riches. John, great to have you back.
John Cortines: So good to be with you, Rob. Thank you.
Rob West: So John, your article in the latest issue of Faithful Steward magazine is titled "Building Your Financial House on God's Word," and boy, I just love this article and how it gives us such a beautiful picture of God's design for finances in our lives. And you begin with Jesus' parable of the wise and foolish builders in Matthew 7. So let's start there and share why that's such a fitting picture for how we approach money.
John Cortines: Absolutely. Well, you know, Rob, Jesus wanted us to understand in that parable that storms will hit everyone. Think of a job loss, or swings in the market, or medical bills. The foundation we're on matters. And if Jesus calls Himself the rock, that's true for all of our life, then of course it's got to be true for our finances as well. And so when we think of our financial life, if Christ is the base, the entire structure is going to stand firm.
Rob West: Yeah, that's exactly right. So let's build that out and start with that foundation. So in your mind, John, what does it look like to make Christ, not money, the bedrock of our financial lives?
John Cortines: Well, Jesus said directly that we cannot serve both God and mammon, or the spirit of wealth, right? So we have to make something the ultimate bedrock of our life. And First Timothy 6 describes the problem with trusting in mammon; it leads to ruin and destruction. So first of all, we remember that everything we have comes from God and ultimately belongs to Him. I think of Haggai 2:8. So if we belong to God, and if our money is His, then that makes us a money manager for Him, and that is a very different mindset than thinking that it's all us. So a steward's mindset says, "My money is here to serve His purposes, and my trust and my life is in Him."
Rob West: Yeah. So God owns everything. Our role then: faithful steward. What is the next faithful decision, knowing we don't own it, but we are ultimately responsible for its management? Now, let's continue to build this house. We've got the foundation in place. Now, you describe these four walls that help protect our financial house, beginning with gratitude, which is such a key idea in biblical money management. So John, how does gratitude guard our hearts against pride?
John Cortines: Well, that's right. And in this article, we talk about how these walls, they're not like the decisions we make on a daily basis. They're actually attitudes of the heart. And pride is such a threat, and a wall of gratitude in our financial house will guard against it, because pride whispers to each of us, "I earned this, and I deserve it." But gratitude answers, "No, no, God provided it." Pride will close our heart, and gratitude will open it up. And so what gratitude does is crowd out self-centeredness and remind us that every blessing we have comes from God. And I think of Deuteronomy 8:18 as a great scripture on this.
Rob West: Yeah. Boy, it's incredible. And I can think in my own life, John, of seasons where I've really leaned into this idea of gratitude, others maybe not so much. What does that look like for you to develop that rhythm of gratitude? Any thoughts?
John Cortines: Yeah. Well, you know, it is such a personal thing, but I think of how in the seasons of my life where I do start to get a little bit proud of what I've accomplished and say, "Hey, look at my resume, look at what I've done," it's such an unhealthy place to be as a believer. But when we step back and again remember God gave us the opportunity, He let us be born in the year we were born in, and of course our salvation in Christ comes from Him, it just really sets us free from thinking everything comes from us and we built it ourselves to: "No, no, this came from God, and I owe it all back to Him."
Rob West: Yeah, I think that's well said, John. And certainly gratitude is one of the key ways we kind of bust down that pride that can so easily creep up in our lives. Well, when we come back after this break, we're going to continue to unpack this and talk about a financial life built on Christ, but that is strengthened by gratitude that we just talked about, also contentment and trust and love, and how those virtues really shape every decision we make as we manage the resources God has entrusted to us. We're talking with John Cortines today about building your financial house on God's Word. John is a family office advisor with Blue Trust and a regular contributor here at FaithFi, and we've got much more coming just around the corner. Stick around.
David Wollen: For your walk with Jesus, I'm David Wollen with Haven Today, inviting you to anchor your day in God's Word. What is grace? When grace comes from God, it's simply the goodness of God toward someone who doesn't deserve it, namely you and me. The Apostle Paul knew this well. He said, "I was shown mercy because I acted in ignorance and unbelief. The grace of our Lord was poured out on me abundantly." Recognizing God's grace in your life is the only lasting motivation to extend that grace to others. Like when a coworker takes credit for your work, a customer is rude, a racist joke cuts more deeply than anyone knows. The strength it takes to give grace like that can feel staggering, which is why we're dependent. We need His grace for grace. Get more daily encouragement for your walk at HavenToday.org.
Announcer: Are you a financial professional looking to grow your practice while offering advice that aligns with your Christian values? By becoming a Certified Kingdom Advisor, you'll gain the biblical wisdom and professional credibility to serve clients who are seeking faith-based financial guidance. Each year, more than 75,000 people search for a Certified Kingdom Advisor. Join our community and share your expertise with clients looking for someone who shares their faith and values. Start your journey today by going to KingdomAdvisors.com/getcertified.
Announcer: If we do all of those other things, but the gospel is not being proclaimed, we will continue to see the erosion of our nation from the inside. Religion informs politics. Politics touches every aspect of our lives. And as the Scripture discusses that the Lord has made His people to be living epistles, what story are we a part of? Join Abraham Hamilton III on The Hamilton Corner, weekdays at 5:00 PM Central on American Family Radio.
Announcer: We are grateful for support from GuideStone, whose diversified suite of investment solutions align with Christian values to create positive change in the world. More information is available at FaithFi.com/GuideStone. Investing involves risk, including potential loss of principal. Carefully consider the investment objectives, risks, charges, and expenses of GuideStone Funds before investing. They are distributed by Foreside Funds Distributors LLC, which is not an advisor affiliate, a registered investment advisor, nor do they provide investment advice.
Announcer: Rising health insurance rates are pricing millions out of the market, and Christian Healthcare Ministries is here to help. CHM is affordable assurance, allowing believers to share the burden of medical bills together. You get simple, low-cost pricing regardless of health history or location. Plus, you can enroll at any time with no contracts. Break free from the huge costs and hidden fees of traditional health insurance. Learn more at FaithFi.com/CHM.
Rob West: Great to have you with us today on Faith and Finance on American Family Radio. We're talking today about building your financial house on God's Word. Joining me today, my friend John Cortines. He's a family office advisor with Blue Trust and a regular contributor here at FaithFi, and his article in our latest edition of Faithful Steward is titled "Building Your Financial House on God's Word." Before the break, John was talking to us about our foundation built on Christ. We understand we can't serve God and mammon, so God needs to be our ultimate treasure, money a tool to accomplish God's purposes. And then as we think about this house that's being erected, these four walls really the heart postures: first, one of gratitude that guards our heart against pride. John, I know the second wall is that of contentment, one of God's big ideas that we see in Scripture around money management. Talk to us about contentment and how it protects our hearts from coveting, comparing ourselves to others.
John Cortines: Yeah. Well, coveting is just a restless appetite for more, and it's such a big deal that it makes it into the Ten Commandments. It is the tenth commandment: not to covet. And in Proverbs, it says that envy makes the bones rot. But biblical contentment brings peace in plenty or in lean times as well. You know, I think of Philippians 4:12 and 13. And when Paul famously said, "I can do all things through Christ who strengthens me," he wasn't talking about accomplishing something, you know, like a hard goal he had set. No, he was talking about being content in challenging economic circumstances. And so when we lean on Christ, that lets us be satisfied no matter what the balance sheet says. And if we're content with where God has placed us, that will protect us from coveting what others have.
Rob West: John, you and I have a friend, Jeff Manion from Ada Bible Church. I think he has such a fabulous book on this topic of contentment called Satisfied. And I love when he talks about, you know, we get so focused on "there and then," thinking that when we get there and we have that, then we'll be content. And he says, "No, we need to focus on the 'here and now' and be fully present and be grateful for what God has provided in this season." Have you experienced that in your life? How have you seen that play out?
John Cortines: Yeah. Well, you know, it is so true. And one of the greatest conversations, I remember somebody challenged a group to think back on some of the happiest times in your life early on, and how much did you have back then? And so often in—all of our stories are different, but for many of us, we think back to early in our life, times where we had so much joy and peace, and realize, "Wow, I had so much less financially back then." So clearly the money is not the driver of peace or joy. It's relationships and peace in Christ.
Rob West: Yeah, that is so true and well said. All right, John, we're continuing to construct this house here. The third wall is trust. Talk to us about how trusting God helps quiet the financial anxiety that so many listening today are experiencing about the future.
John Cortines: Well, anxiety grows when we think that our provision rests on us alone. And many people who are savers out there like me will know what I mean by this. You know, maybe you toss and turn at night: "Am I saving enough? Am I going to be okay? What if this happens? What if that happens?" Jesus reminds us in Luke 12 that the Father already knows our needs. And I would encourage anybody wrestling with that to go read that chapter, Luke chapter 12. If we have a posture of trust, it frees us to chase His kingdom first. And there's two levels to that. First of all, we trust that He knows what we need and He'll be our provider. But our even greater level of trust is in our eternal salvation. And so Rob, even if you or I die today, we each trust in Christ. We know death has been defeated, and we're going straight into eternity with Him. And so if we remember that, that gives us a peaceful heart free from financial worry in our day-to-day.
Rob West: That's right. The fourth wall, John, is of course love. And, you know, this is not something we think about often as it relates to money. So how should love shape the way we view and even use money?
John Cortines: Oh, I love this topic here, and I would argue that the opposite of love is not hate, but indifference. And it's so easy as we're managing money and living our lives to just kind of think about our own little world and be not concerned at all with what others need or with how God may be inviting us to partner in His purposes. But as we all know as believers, God is inviting us to a higher calling and to a life of love. This starts when we remember what Christ has done for us. We can look at Second Corinthians 8 and 9 on this, two amazing chapters on money. But Christ is the one who became poor and poured Himself out out of His love for us, and our joyful response is true love for others. And we can truly grow as disciples to the point where we want desperately to share our lives, share our money, share our abilities to build up the church. And that is fully living in our financial lives in alignment with His purposes, is when we want to use it all for His glory in love for others.
Rob West: Mm. What an exciting vision for our handling of money and the opportunity we have to participate in God's redemptive work in the world. Now, resting on those four walls, John, is of course the roof, and you call that our financial identity. And we've talked a moment ago about our role being that of a steward. So what changes when we see ourselves not as owners, but as stewards of what God has entrusted to us?
John Cortines: That's right. Well, there's two extremes we could go to. You know, as you said, one is ownership, and it's "mine, this financial house is mine, I'll do what I want with it." The other end of the spectrum would be a victim mentality that says, "I have no control. You know, life just happens. I can't get ahead." But a steward's mindset says, again, "All of this is God's, and I manage what He's provided for His glory." And if we see ourselves as a manager, that starts to steer our decisions towards His purposes, but it's also freeing for us, because we know that He is actually a generous and good master. If money is our master, if we're the owner, if we're the driver, that's going to leave us all spun up. But He is a good master for us to serve, and changing that identity mindset is a big deal.
Rob West: Yeah, I think that's exactly right. Now, as we continue to build this house, you tell us in the article that we furnish the house with wise financial choices. So let's talk about those everyday practices that Scripture encourages us to put in place. What would you highlight?
John Cortines: Yeah, well, these are the, like you said, the internal furnishings of our financial house. The attitudes come first, the biblical mindset. But this is the biblical wisdom that listeners hear you teach on every single day, and so no surprises here. But as we work diligently, as we spend with purpose, as we're careful with debt and even try to have none, save steadily for long-term goals, invest patiently with diversification—that's even a biblical idea to diversify our investments—to practice eager and joyful generosity and hospitality, all of this is rooted in God's Word. It's all throughout Scripture, and it represents a life of financial peace. So once we get the attitudes right, then we start making these daily decisions faithfully that lead us to God's plans for our money.
Rob West: Yeah, I think that's right. And I think we can try to jump to those decisions because, you know, those decisions are the ones staring us in the face that we're making day in and day out. But I want to circle back, just as we begin to wrap up here today, why is it so important to be sure the walls of our financial house are secure and really dealing with those inner foundations first?
John Cortines: Sure. Well, I think we can trick ourselves into a decision very easily. You know, we're so good at self-deception or justifying what we really want to do. But personally, I love to use these four checks, these four walls on my financial motivations. Let's say I have a big purchase coming up, and I want to ask, "Is this something God has for me?" First of all, I'm going to pray about it. But I'm also going to ask, "Am I approaching this from pride or from gratitude? From coveting or from contentment? From anxiety or from trust? And from indifference or from love?" And I think that is a huge mindset check of how am I approaching a decision or a major money move, and I've had that test guide me away from some things I thought I should do and actually give a green light for other things that I felt God's peace in.
Rob West: Wow, this is so good. Folks, a financial life built on Christ is strengthened by gratitude, contentment, trust, and love. This is a game changer. John, thanks.
John Cortines: Great to be with you, Rob. Thank you.
Rob West: That's John Cortines with Blue Trust. Back with your questions after this. Stick around.
Announcer: Every day, AFA offers biblical insight on issues that others aren't willing to touch in the hopes that you'll become a world-changer. That's why we're offering an in-depth worldview training course called Activate. 13 different professors teaching 18 sessions, all available online, including a printed workbook to help you apply what you've learned, and one-year access to AFA streaming content to give you even more resources. Find out more about Activate and sign up today at activate.afa.net.
Announcer: Faith and Finance is grateful for support from Eventide Investments, a faith-based asset manager pursuing investing that makes the world rejoice. Eventide invests from a biblical worldview, helping values-aligned investors pursue integrity, impact, and performance through their portfolios. More information is available about how you can align your faith with your investments at faithfi.com/eventide. That's faithfi.com/eventide.
Announcer: AFA Action takes attacks on the family seriously. The enemies of the family constantly employ new tactics to try to sneak past our radar. They know if we stand together, their evil plans will fail. Your gift to AFA Action allows us to stay vigilant against their onslaught. And if you give this month, you'll receive access to the Cultural Institute video, "When Your Faith Is Illegal" by Frank Harbor, on AFA Stream as our thanks. You can make your gift today at afaaction.net.
Announcer: We are grateful for support from Timothy Plan. Since 1994, Timothy Plan has shared good news with investors and advisors by offering faith-honoring mutual funds and exchange-traded funds. More information is at timothyplan.com. The investment objectives, risks, charges, and expenses are contained in the prospectus and summary prospectus available at timothyplan.com. Mutual funds distributed by Timothy Partners, Ltd. and ETFs distributed by Foresight Fund Services, LLC. Investing involves risks, including possible loss of principal.
Announcer: For over 40 years, American Family Association has stood for righteousness and God's truth in our nation. American Family Association Executive Vice President, Ed Vitagliano. One important way you can join us in the battle is through a charitable gift annuity with the AFA Foundation. The charitable gift annuity benefits you and it benefits the culture-transforming work of American Family Association. Phone 800-326-4543, extension 345.
Announcer: We are grateful for support from Movement Mortgage, who provides residential home loans and reverse mortgage options in all 50 states. Guided by a mission to love and value people, Movement seeks to help individuals and families make informed financial decisions, from buying a home to planning for retirement. More information is available at faithfi.com/movement. Movement Mortgage, LLC supports equal housing opportunity. NMLS number 39179. For licensing information, visit nmlsconsumeraccess.org.
Rob West: I'm so glad you're with us today on Faith and Finance here on American Family Radio. I'm Rob West. You know our goal on this program each day: to help you see God as your ultimate treasure, to understand that God owns everything, you and I are stewards, and that money is a tool to accomplish really powerful and good things, including enjoying it, including providing for our families, but yes, loving our neighbor and protecting the vulnerable and advancing the gospel. That's the privilege we have as money managers of the King of Kings.
But we also understand that along your journey, there are going to be challenges and struggles and mistakes that we all make. And then we're going to face questions as we give, save, and spend. And that's why we show up each day: to remind you of truth. And that's what we started today with as our friend John Cortines joined us to give us, you know, the foundation and the walls of this house that we're building as we go back to God's Word and we say, "What is true about how we should view money and possessions and the role we have as stewards?"
And then once that foundation is in place, we can build on that with the practical decisions that you and I have to make every day. And so that's what we want to do today is come alongside you and deal with your questions related to debt repayment. I mean, let's get real. Let's talk about how you balance that budget. Let's talk about how you invest for the future. Let's talk about how you think about protecting your identity as you navigate a digital, instantaneous world. Let's help you think about what it looks like to prepare the next steward and everything in between.
So with those questions today, no question too big or too small, as long as they're in that financial lane, we'd love to hear from you today when you call 800-525-7000. Pat Collins is standing by to take our calls today, and the team is ready to get you on the air quickly. Again, that number: 800-525-7000. We will dive into those questions here in just a moment.
In the news today, although budgeting is widely viewed as an important financial habit, many people struggle to follow the plans they create. According to Investopedia, nearly 86% of people say they use a budget regularly, but fewer than 25% actually stick to it. Sound familiar? Financial experts point to several common obstacles including overspending, rising living costs—we're all well aware of that; I had to fill up my car at the gas station this morning, I was certainly reminded of that—existing debt, unrealistic savings or spending goals make this challenging as well.
This can make it difficult, of course, for households then to stay within planned limits, especially when unexpected expenses arise. Budgeting habits can also vary across different groups. Factors like age and income and race may influence whether someone creates a budget and how consistently they're able to maintain it. The findings highlight a gap between financial planning and everyday behavior. While many consumers understand the value of budgeting, keeping spending aligned with financial goals remains a significant challenge for millions seeking greater control over their finances and continued economic pressure.
It's one of the reasons we're here each day to try to help you wrestle through those questions. Whatever's tripping you up, let's talk about it today, and hopefully we can help you get on a plan that sticks. Perhaps the budgeting app from FaithFi could help you do that as we allow you to download your transactions automatically inside the app—not moving money, but inside the app—allocating what you have in checking and savings to your envelopes. This is the system Larry Burkett created back in the '70s and '80s that I think is really still tried and true today, but we just modernized it and simplified it in the FaithFi app, which you can check out at faithfi.com.
Nevertheless, let's dive into your questions today. The lines are filling up; we still have a few open at the moment. 800-525-7000. That's 800-525-7000, you can call right now. Let's begin today in New Hampshire. Mike, thanks for your patience, sir. Go ahead.
Mike: Good morning. Thank you for taking my call, Rob.
Rob West: Yes.
Mike: My question revolves around an annuity I took out. I want to know whether it was a wise decision based on my overall plan for this annuity or not. Currently I'm 73. I took out the annuity at about 53, and at that time—by the way, this annuity will can never go negative. It can go to zero, but it can never go negative. At the time I took it out, they gave me 8%—I'm going to call it a bonus or whatever—which amounted to roughly about $25,000 additional money added to it. At about 12 years into the annuity, I changed it, I transferred it to another one, and at that time, they gave me an additional 22% of what I had in there, which amounted to about $110,000. And now, if I wait another three and a half years, I can transfer it to yet another annuity and they will give me—I believe it's 45% or close to half a million added to that annuity. Now, this annuity will never be cashed in by me. It will go to my heirs—my children and grandchildren. So, that means that all of this additional money is not going to be removed as if I were to have taken that money to live on. I will never need this to live on. Did I make a proper decision based on this fact that I will never access this money myself?
Rob West: Yeah. Yeah, very good. Really great overview there. And I think just for the benefit of our listeners, I think, you know, understand what this word "bonus" that Mike's using actually means. It means, you know, if you don't need it for retirement income and you're primarily using it as an inheritance vehicle, you know, I would evaluate it based on what your heirs are actually guaranteed to receive, not the bonus percentages. Because an 8 or a 22 or a 45% bonus doesn't necessarily mean a 45% return or that another half a million dollars becomes freely available cash. Typically, that just means that's an income benefit base, so it's a bookkeeping value used to calculate future income, often not withdrawable cash, and the amount the beneficiaries may receive when you pass away may be a different number altogether. Let's talk about that and a few other things right after this break. Mike, stay with us. We'll be right back.
Announcer: Feeling burdened by credit card debt? As faithful stewards, we are called to manage our finances wisely. Christian Credit Counselors can help with a debt management program that allows you to pay off debt up to 80% faster while honoring your commitments with integrity. Don't let debt hold you back from the life God has planned for you. Take the first step toward peace and financial freedom today. Visit faithfi.com/ccc or call 800-557-1985.
Announcer: Let's think about what God has done. I would wager that his top news story is still that the free salvation through the blood of Jesus Christ is available to all. I wager that will be the top news story until that salvation is no longer available. You will have made your decision for eternity. He doesn't ask us to do anything he won't, and then he does above what we can possibly do. Hear Todd Herman on A Disciple's View, weekdays 12:00 PM Central on AFR.
Announcer: Faith Fi is grateful for support from Sound Mind Investing. For more than 30 years, they've offered financial wisdom for living well. SMI provides step-by-step guidance for do-it-yourself investors, from those just getting started to those getting ready for retirement. More information, including the short video webinar on profit and peace of mind no matter what's happening in the market, is available at soundmindinvesting.org.
Announcer: Money always seems to ask for more. More income, more savings, more security. But what if the better question is, how much is enough? This Faith Fi Field Guide isn't just a book to read, it's a practical guide that helps you prayerfully answer that question for your own life, one step at a time. Order your copy of How Much Money Is Enough? today at faithfi.com/shop. That's faithfi.com/shop.
Announcer: At Wesley Biblical Seminary, we believe God is raising up a movement across our nation and around the world who hold fast to the inerrancy of Scripture and the hope of holiness. We do this through bachelor's, master's, and doctoral degrees, certificate programs, and even training for laypeople. So whatever your next step is in being equipped for ministry, we're here for you. And if you believe these are the kind of pastors we need leading churches in the future, we invite you to think about giving to Wesley Biblical Seminary. Learn more about us at wbs.edu.
Announcer: Every day, thousands of women face an unexpected pregnancy—scared, alone, and unsure where to turn. Faith Fi is partnering with Preborn and you to bring the hope of Jesus to these mothers through free ultrasounds at pregnancy centers across America. When a mother sees her baby's heartbeat, everything changes. Your gift of just $28 saves a life and shares the love of Christ. Give today at faithfi.com/preborn. That's faithfi.com/preborn.
Announcer: This is American Family Radio, a listener-supported ministry of the American Family Association.
Rob West: Thanks for joining us today on Faith and Finance here on American Family Radio. I'm Rob West. Before the break, we were talking to Mike in New Hampshire. Mike is 73 years old, has an annuity he began at age 53. They gave him an 8% bonus at the beginning, later a 22%. His initial investment and none of the gains, he understands, will be reduced as long as he keeps it until death. He's wondering if he made a good investment. By his understanding, it should be worth $3 or $4 million at the end of his life, and he doesn't plan to use any of it. He has other income and assets to cover his expenses for the rest of his life. And he's wondering if, you know, then passing it on at that point makes sense. He also has an opportunity to do yet another transfer and get what he's hearing would be up to a 45% bonus, or a half million dollars, that he would have access to.
And I was saying before the break, Mike, just that you need to be careful with this word "bonus" and just understand there's a difference between the bonus and how it affects the income base that they use to determine what income stream you'll get, which you're saying you're not going to use, versus the death benefit value, the amount your beneficiaries would receive when you pass away while the contract is in force. And that's why I would want to know exactly which value is receiving that 45%, because the Securities and Exchange Commission has warned that annuity bonuses, you know, can be offset by higher fees and longer surrender periods and restrictions, and some bonuses are even forfeited under certain circumstances.
So, you know, is it a good investment? Possibly. You know, if you've held it for 20 years, you've received valuable guarantees, you don't need the liquidity, the contract provides substantial guaranteed death benefit, then it could have accomplished exactly what you're looking for. But I would just check on this idea, or clarify, you know, this expected $3 to $4 million that you're thinking it'll be worth at death. I would probably ask to the company, "Is the $3 to $4 million the guaranteed death benefit showed in the contract, or is that a projected value based on assumptions?" Because those are very different.
I'd also want to know, you know, whether withdrawals would reduce the death benefit. And then I would—I would be really cautious about transferring it again for this, you know, really high bonus. I'd investigate that. I'm not saying you shouldn't, but, you know, if someone at 73 looking to do an exchange for an existing annuity for another annuity because of this bonus, don't make it purely on the bonus. You're going to want to know, you know, does this start a new surrender period? It likely does. Does it introduce higher fees? Could you lose guarantees that you had under the old contract? So you're going to probably want to see a side-by-side comparison, just so you understand, you know, in writing, the difference between keeping the current annuity versus taking the new 45% bonus with the exchange, and get the current cash value, you know, the current account value, the guaranteed death benefit, the projected death benefit, the cost basis, the annual fees, and then look at those things side by side. Now, I know I've thrown a lot at you, so let me stop there and just get your thoughts.
Mike: Uh, I agree with you that if there is a—there's a surrender value if I were to start taking any monies out. But I am told by my financial person that even if I were to pass away a week after I did this additional transfer and got the—the 45%, my overall death benefit would include that total sum to be paid to my heirs. But if I were to take any of that, like you say, ahead of time, then there are a lot of things, uh, that I would lose. But that's not my plan at all.
Rob West: Yeah. No, that—that makes sense. You know, I think I would just, probably given the significance of this, um, you know, I would probably ask for that in writing. Um, you know, it—it could be true that this particular product provides an enhanced death benefit base that becomes effective immediately, um, but I would want to know that because that's an important claim. And, you know, I would want to verify it directly in the new annuity contract before proceeding, just to make sure that there's no, you know, misunderstandings there. Um, you know, annuities can have riders specifically designed to provide enhanced death benefits, but the terms vary dramatically between contracts. So I would just say, you know, "This—this all sounds great. Can you show me an actual contract where it says that if I die, uh, you know, immediately after the exchange, my beneficiaries receive the entire 45% bonus in addition to the amount transferred, with no vesting period, no reduction, no clawback, no waiting period?" Um, and—and I'd want the insurer to confirm that in writing.
Mike: Good point. I will do that.
Rob West: Okay. Otherwise, yeah, I mean, I think you're on the right track here just in terms of what you're planning for, and, um, you know, this could be a—a great, an incredible blessing for your heirs. And then the next step is just to make sure you're passing wisdom before wealth. And, uh, this fall we've got a new field guide coming out called How Do I Prepare the Next Steward? that really helps you think about what it looks like to be intentional to pass spiritual capital and character capital and relational capital before the financial capital. And I think, you know, that's another piece of this as well. But other than that, Mike, sounds like you're on the right track.
Mike: Thank you very much. I appreciate your confirmation on that.
Rob West: All right. Lord bless you, my friend. Call anytime. Let's go to North Carolina. Hi, Miles. How can I help?
Miles: Hey, good morning, Rob. Uh, my wife has quit working several years ago, but now that she's turning 55, has the opportunity to take a retirement from her previous job, uh, $440 a month or a lump sum of $58,000. I just want to get your thoughts on that.
Rob West: Hm. Yeah. So I'd want to find out exactly what kind of account it is. It could be a 403(b), could be a pension annuity, could—could be another qualified retirement plan. That's going to determine what distribution choices you have and how they're taxed. Um, so what is the main question you're—you have at this point, just related to this account?
Miles: Yeah, uh, it's—it's a pension plan, and I'm just curious, uh, you know, with the—if the, you know, if the math makes sense to take that lump sum, or if it makes sense to take the, uh, monthly payment.
Rob West: Ah, yes. Do you have an—a good understanding of what either option provides?
Miles: No, I don't guess I do.
Rob West: Okay. Yeah, so that—that's probably what you're going to want to look for and—and ask for, because this is a classic decision that—that most people, you know, have to make. Um, and so you want to do the comparison between the lump sum and the monthly pension. Neither is automatically better. The math depends heavily on the monthly amount offered. And so, you know, you would want to ask the pension administrator for the exact numbers. So if the lump sum's 58, what is the monthly single life pension—X amount, uh, you know, dollars per month for life? And then what is the monthly joint and survivor pension, so it'll be a different number for life when it's on two lives, you and your survivor? And then, you know, the amount you would receive if she dies first. And then you're going to want to know whether the monthly benefit has an inflation adjustment or a cost-of-living adjustment.
And then you can simply calculate the break-even age. So for example, um, suppose you can choose between 58,000 as a lump sum or 500 a month for life. Well, 58,000 divided by 500 is 116 months, so that's almost 10 years. So if you live longer than roughly 10 years after starting the payments, you know, she would have received more than 58,000 in nominal pension payments. Um, so I think, you know, that's one of the ways that—that we can handle this and calculate that break-even. Let's do this: I want to see if you have any other questions. We'll do that during the break here, so stay right there, Miles. We'll chat a bit more. We'll be right back.
Announcer: The Book of Revelation is filled with dramatic events—from God's judgments to Satan's demonic attacks and the rise of the Antichrist. But this week on Pathway to Victory, Dr. Robert Jeffress builds up to the most important event in human history: the return of Jesus Christ. Join us for a study in Revelation called Final Conquest, this week on Pathway to Victory. Weekday mornings at 6:00 Central on American Family Radio.
Announcer: You can hear amazing things on American Family Radio. Doug Cobb’s Finishing Fund is working to bring the gospel to those remaining tribes and tongues and people who haven't yet reached the gospel. How close are we to that goal? We are within a handful of people groups, as he described them, all over the world. So literally, within a matter of months or very few years... That clip shows just how close we may be to Christ's second coming, and it also highlights the importance of ministries like AFA and AFR. Thank you for listening.
Announcer: As the leading advocate for the Christian financial industry, Kingdom Advisors serves the public by promoting the integration of a biblical worldview across every aspect of the financial services industry. And we serve a growing network of thousands of Christian financial professionals, equipping and empowering them to carry biblical financial wisdom to their clients, peers, and community. For more information, visit KingdomAdvisors.com. That's KingdomAdvisors.com.
Announcer: Wondering who Faith and Finance recommends as a banking partner that aligns with Christian values? It's AdelFi Christian Banking, the trusted team you've known as Christian Community Credit Union. With high-yield checking, savings, Visa cashback cards, and a competitive money market account, your everyday banking helps advance the gospel. Visit faithfi.com/banking and use the code FAITHFI. Membership eligibility required. Accounts are privately insured up to $250,000. This institution is not federally insured.
Rob West: Great to have you with us today on Faith & Finance here on American Family Radio. I'm Rob West. We're taking your questions here in this final segment. We've got room for one to two more in addition to those holding at 800-525-7000. That's 800-525-7000.
Before the break, we were talking to Miles in North Carolina. His wife has an annuity from work, about $58,000. She is retired with a child that has special needs at home. He's asking about disbursements from that annuity—the pension plan—and wondering if the math makes sense to take the lump sum or the monthly payment. I was able to clarify during the break: the monthly payment being offered on a single life (hers) is $440 a month, and on both lives, $420. He's got a military pension, a little over a million dollars in retirement, and the house is paid off. They're in good shape, just wondering about the taxes and the best option given the opportunity cost and the internal rate of return on taking the lump sum versus taking the monthly pension.
And I think, with those numbers, your instinct is right, Miles. Just doing some quick calculations here, I think the pension looks attractive and is very reasonable, assuming she's in good health and the $440 is a true lifetime benefit. Because at $58,000 versus $5,300 a year, that's about a 9.1% return. Now, that's not a quote, "investment return," because the pension is also effectively returning principal over her lifetime, but it's a strong payout relative to the lump sum offer. I mean, if you compare that with the 4% rule, that would be $2,300 a year, or $193 a month. At $440, we're more than twice that initial amount.
Now, the difference is, with the $58,000 invested, you still own the remaining portfolio and potentially can leave it to heirs. With the single-life pension, the $440 would stop when she dies—that's, of course, the tradeoff. But as you said, you have plenty of other assets. What if you earned 7% as a hypothetical annual return? Well, that would only be $4,000 a year, so you're still below the pension's $5,300. But there's an important distinction: the 7% return is not guaranteed, and some years could be 20% plus, other years could be negative, while the pension provides that predictable lifetime income. So, and the taxes really don't change anything in my mind. So, I'd lean toward the pension, just based on everything you've given me.
Miles: Sounds great, Rob. I appreciate your help. I enjoy listening to your show.
Rob West: All right, buddy. Well, I appreciate you. Listen, if you think of anything else or I can help further, don't hesitate to call back, but sounds like you're on the right track here. Let's go to Huntsville, Alabama. Vicky, how can I help?
Vicky: Yes, Rob. Thank you for taking my call. My husband passed away about almost four years—three and a half, almost four years ago, and he had a credit card. My name is not on it, and I have been paying more than the minimum on it. Am I still—I've been thinking about it—am I responsible to pay that off?
Rob West: Yeah. Boy, it's a great question because, theoretically, you may have been making payments on a credit card debt that you were never personally responsible for. If they were solely in his name and you were neither a joint owner nor a cosigner, then you're generally not personally responsible for those balances merely because you were his wife.
Normally, when he passed, a valid credit card debt should have been claimed against the estate. If the estate didn't have enough assets to pay them, then the remaining debt would go unpaid. You know, I think the next step here, because you've already been making voluntary payments for three and a half years, I would perhaps have a probate attorney—whoever handled this when he passed—review the situation before you make major changes. State law matters, and I'd want the attorney to determine whether those payments affected anything legally. You'd generally want to get it in writing, but I think consulting that attorney is probably your best option in terms of where you go from here because, again, the state rules will tell you whether there's spousal liability exceptions that you need to be concerned about. That's ultimately what it's going to come down to.
Vicky: Okay. I appreciate it. I've been paying this all this time, and I'm just wondering if I'm making payments on something that I really—I'm not responsible for. But you answered my question.
Rob West: Very good. Hey, stay on the line, Vicky. I'm going to send you a gift—it's a book called Wise Women Managing Money that I think will be a blessing to you. A good friend of the ministry wrote this and started a ministry, actually, when her husband passed away. I think it'll be an encouragement. I'd love to put it in the mail to you, so just stay on the line there. We'll send it to you as our gift. Thanks for calling today.
800-525-7000. We've got room for maybe one more question in addition to Carol's, which is where we'll head next out to Michigan. Carol, go ahead.
Carol: Thanks for taking my call. I've been talking with a CKA financial advisor, and he has a fee of, I believe, 0.95%. And we have $240,000 to work with. I'm 60, my husband's 63, and we will be getting that money if we sell our house, which we plan on doing. I guess what I'm wondering is: Would it be best to go with a financial advisor like him or attempt to invest on my own? I do have a disability with the computer, so I can't use it very often, so I'm leaning towards the financial advisor, but I just kind of wondered your thoughts on that.
Rob West: Yeah. And what did you say the fee was?
Carol: 0.95%.
Rob West: Yeah, which is very reasonable, I would say, in terms of what a typical advisor would charge. That's on the low end, for sure.
You know, you absolutely can do it on your own. You could open a self-directed brokerage account that would be less expensive, so to speak, "quote-unquote," and build a portfolio of diversified mutual funds or exchange-traded funds. I think, though, the real benefit here would be the advisor bringing to the table a rules-based and professional approach to the management of the assets, especially when the markets head down. It's one thing when the market's going straight up, but we hit a recession, and being able to think about not reacting emotionally—which a lot of people do when they're managing their own money and perhaps pulling it all out, which can often be the worst thing you can do in a falling market because then you never know when to get back in and you can miss when it turns around, which often happens a lot sooner than people expect—not to mention just in terms of the actual portfolio itself.
Then you get the planning that goes along with it, which is considering the tax implications and how any kind of distributions are going to affect your IRMAA on your Medicare and your overall taxation. So, I think there's just a lot of benefits to having that advisor in place. Yes, there is an added expense there, so roughly an extra $2,400 a year—that's not insignificant—and yet, I think the value of that, both in terms of how he or she can protect the assets, grow them over time, really bring a thoughtful approach to the investment selections, and then the planning on top of it, is far superior to the actual cost that you would spend out of the portfolio. So, that's going to be my approach: that the advisor is the way to go when you get to this place where you have a quarter of a million or more, because often that would be the minimum for many advisors.
And I think the other piece is just having a CKA brings that biblical perspective as well, not to mention the additional regulatory review, pastor and client references, and so forth. At the end of the day, that would be my recommendation, Carol.
Carol: Okay, well thanks. That really helps. I appreciate it.
Rob West: Absolutely, you're very welcome, and we appreciate you being on the program today. If you have other things along the way, don't hesitate to reach out.
Well, folks, what a treat to be with you today. Let me remind you of just a couple of things before we wrap up the program today, because we are right up near the end. Number one is, we have just a few days left in our partnership with Preborn. We're so thankful, and I know AFR listeners are very well acquainted with the incredible ministry of Preborn, providing free ultrasounds, sharing the gospel, providing much-needed resources, diapers, and other needs for moms that choose life. And we're partnering with them at FaithFi here until August 31st. We set a goal to fund 1,500 free ultrasounds. We're over 1,000, but still have about 500 more free ultrasounds to go. Every $28 given is going to fund one of those free ultrasounds. More than half the time—in fact, significantly more than half the time—when a mom sees her baby on an ultrasound, she chooses life. And then Preborn shares the gospel with her, and then they journey with her with some much-needed resources. It's an incredible ministry.
If you would like to come alongside Preborn and FaithFi and help to take 1, 5, 10, or 25 of these free ultrasounds, we would love for you to head over to faithfi.com/preborn. Again, every $28 given is going to help us fund one of these free ultrasounds, and we would love to reach and then go right past that goal of 1,500. But it's going to take a big week this week as we head toward our August 31st deadline. Again, that website: faithfi.com/preborn.
Folks, I'm so thankful that you join us each day on this program. It's such a privilege to come alongside you along with this amazing team, like Pat and Devin and Taylor and Afton and Ashley and everybody here at FaithFi that makes this possible. It's our privilege to come alongside you because here's what we know: when we get this area of our finances right—not meaning we make all the right decisions, but get it right in terms of seeing Christ as our ultimate treasure, seeing money as a tool, realizing that faithfulness is the measure, the next faithful decision right now, not in the future, today, what is the next faithful decision—that when we do that, it results in a more intimate relationship with the Lord. There's just something about putting this area of our lives, money, under the lordship of Christ. We often kind of hold it out of the water symbolically and say, "No, no, this part's mine." No, it all belongs to Him, and when we surrender it, incredible things happen. And then we can hold it loosely and give it generously to support the incredible work of ministries like AFA doing culture-transforming work, and FaithFi, helping God's people manage God's money God's way. That's the privilege that we get.
So come back and join us tomorrow. Lord willing, we'll do it all over again. Until then, may God bless you. We'll see you then.
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: Our financial lives stand or fall on the foundation we choose. I am Rob West. Jesus said the wise man built his house on the rock so it could stand when the storm came. The same is true of our financial lives. John Cortines joins us today to show us how to build a financial house on the wisdom of God's Word, and then we'll take your calls at 800-525-7000. That's 800-525-7000. This is Faith and Finance on American Family Radio. Biblical wisdom for your financial journey.
Well, we always enjoy having my friend John Cortines on the program. John is a family office advisor with Blue Trust and a regular FaithFi contributor. He's also the co-author of both God and Money and True Riches. John, great to have you back.
John Cortines: So good to be with you, Rob. Thank you.
Rob West: So John, your article in the latest issue of Faithful Steward magazine is titled "Building Your Financial House on God's Word," and boy, I just love this article and how it gives us such a beautiful picture of God's design for finances in our lives. And you begin with Jesus' parable of the wise and foolish builders in Matthew 7. So let's start there and share why that's such a fitting picture for how we approach money.
John Cortines: Absolutely. Well, you know, Rob, Jesus wanted us to understand in that parable that storms will hit everyone. Think of a job loss, or swings in the market, or medical bills. The foundation we're on matters. And if Jesus calls Himself the rock, that's true for all of our life, then of course it's got to be true for our finances as well. And so when we think of our financial life, if Christ is the base, the entire structure is going to stand firm.
Rob West: Yeah, that's exactly right. So let's build that out and start with that foundation. So in your mind, John, what does it look like to make Christ, not money, the bedrock of our financial lives?
John Cortines: Well, Jesus said directly that we cannot serve both God and mammon, or the spirit of wealth, right? So we have to make something the ultimate bedrock of our life. And First Timothy 6 describes the problem with trusting in mammon; it leads to ruin and destruction. So first of all, we remember that everything we have comes from God and ultimately belongs to Him. I think of Haggai 2:8. So if we belong to God, and if our money is His, then that makes us a money manager for Him, and that is a very different mindset than thinking that it's all us. So a steward's mindset says, "My money is here to serve His purposes, and my trust and my life is in Him."
Rob West: Yeah. So God owns everything. Our role then: faithful steward. What is the next faithful decision, knowing we don't own it, but we are ultimately responsible for its management? Now, let's continue to build this house. We've got the foundation in place. Now, you describe these four walls that help protect our financial house, beginning with gratitude, which is such a key idea in biblical money management. So John, how does gratitude guard our hearts against pride?
John Cortines: Well, that's right. And in this article, we talk about how these walls, they're not like the decisions we make on a daily basis. They're actually attitudes of the heart. And pride is such a threat, and a wall of gratitude in our financial house will guard against it, because pride whispers to each of us, "I earned this, and I deserve it." But gratitude answers, "No, no, God provided it." Pride will close our heart, and gratitude will open it up. And so what gratitude does is crowd out self-centeredness and remind us that every blessing we have comes from God. And I think of Deuteronomy 8:18 as a great scripture on this.
Rob West: Yeah. Boy, it's incredible. And I can think in my own life, John, of seasons where I've really leaned into this idea of gratitude, others maybe not so much. What does that look like for you to develop that rhythm of gratitude? Any thoughts?
John Cortines: Yeah. Well, you know, it is such a personal thing, but I think of how in the seasons of my life where I do start to get a little bit proud of what I've accomplished and say, "Hey, look at my resume, look at what I've done," it's such an unhealthy place to be as a believer. But when we step back and again remember God gave us the opportunity, He let us be born in the year we were born in, and of course our salvation in Christ comes from Him, it just really sets us free from thinking everything comes from us and we built it ourselves to: "No, no, this came from God, and I owe it all back to Him."
Rob West: Yeah, I think that's well said, John. And certainly gratitude is one of the key ways we kind of bust down that pride that can so easily creep up in our lives. Well, when we come back after this break, we're going to continue to unpack this and talk about a financial life built on Christ, but that is strengthened by gratitude that we just talked about, also contentment and trust and love, and how those virtues really shape every decision we make as we manage the resources God has entrusted to us. We're talking with John Cortines today about building your financial house on God's Word. John is a family office advisor with Blue Trust and a regular contributor here at FaithFi, and we've got much more coming just around the corner. Stick around.
David Wollen: For your walk with Jesus, I'm David Wollen with Haven Today, inviting you to anchor your day in God's Word. What is grace? When grace comes from God, it's simply the goodness of God toward someone who doesn't deserve it, namely you and me. The Apostle Paul knew this well. He said, "I was shown mercy because I acted in ignorance and unbelief. The grace of our Lord was poured out on me abundantly." Recognizing God's grace in your life is the only lasting motivation to extend that grace to others. Like when a coworker takes credit for your work, a customer is rude, a racist joke cuts more deeply than anyone knows. The strength it takes to give grace like that can feel staggering, which is why we're dependent. We need His grace for grace. Get more daily encouragement for your walk at HavenToday.org.
Announcer: Are you a financial professional looking to grow your practice while offering advice that aligns with your Christian values? By becoming a Certified Kingdom Advisor, you'll gain the biblical wisdom and professional credibility to serve clients who are seeking faith-based financial guidance. Each year, more than 75,000 people search for a Certified Kingdom Advisor. Join our community and share your expertise with clients looking for someone who shares their faith and values. Start your journey today by going to KingdomAdvisors.com/getcertified.
Announcer: If we do all of those other things, but the gospel is not being proclaimed, we will continue to see the erosion of our nation from the inside. Religion informs politics. Politics touches every aspect of our lives. And as the Scripture discusses that the Lord has made His people to be living epistles, what story are we a part of? Join Abraham Hamilton III on The Hamilton Corner, weekdays at 5:00 PM Central on American Family Radio.
Announcer: We are grateful for support from GuideStone, whose diversified suite of investment solutions align with Christian values to create positive change in the world. More information is available at FaithFi.com/GuideStone. Investing involves risk, including potential loss of principal. Carefully consider the investment objectives, risks, charges, and expenses of GuideStone Funds before investing. They are distributed by Foreside Funds Distributors LLC, which is not an advisor affiliate, a registered investment advisor, nor do they provide investment advice.
Announcer: Rising health insurance rates are pricing millions out of the market, and Christian Healthcare Ministries is here to help. CHM is affordable assurance, allowing believers to share the burden of medical bills together. You get simple, low-cost pricing regardless of health history or location. Plus, you can enroll at any time with no contracts. Break free from the huge costs and hidden fees of traditional health insurance. Learn more at FaithFi.com/CHM.
Rob West: Great to have you with us today on Faith and Finance on American Family Radio. We're talking today about building your financial house on God's Word. Joining me today, my friend John Cortines. He's a family office advisor with Blue Trust and a regular contributor here at FaithFi, and his article in our latest edition of Faithful Steward is titled "Building Your Financial House on God's Word." Before the break, John was talking to us about our foundation built on Christ. We understand we can't serve God and mammon, so God needs to be our ultimate treasure, money a tool to accomplish God's purposes. And then as we think about this house that's being erected, these four walls really the heart postures: first, one of gratitude that guards our heart against pride. John, I know the second wall is that of contentment, one of God's big ideas that we see in Scripture around money management. Talk to us about contentment and how it protects our hearts from coveting, comparing ourselves to others.
John Cortines: Yeah. Well, coveting is just a restless appetite for more, and it's such a big deal that it makes it into the Ten Commandments. It is the tenth commandment: not to covet. And in Proverbs, it says that envy makes the bones rot. But biblical contentment brings peace in plenty or in lean times as well. You know, I think of Philippians 4:12 and 13. And when Paul famously said, "I can do all things through Christ who strengthens me," he wasn't talking about accomplishing something, you know, like a hard goal he had set. No, he was talking about being content in challenging economic circumstances. And so when we lean on Christ, that lets us be satisfied no matter what the balance sheet says. And if we're content with where God has placed us, that will protect us from coveting what others have.
Rob West: John, you and I have a friend, Jeff Manion from Ada Bible Church. I think he has such a fabulous book on this topic of contentment called Satisfied. And I love when he talks about, you know, we get so focused on "there and then," thinking that when we get there and we have that, then we'll be content. And he says, "No, we need to focus on the 'here and now' and be fully present and be grateful for what God has provided in this season." Have you experienced that in your life? How have you seen that play out?
John Cortines: Yeah. Well, you know, it is so true. And one of the greatest conversations, I remember somebody challenged a group to think back on some of the happiest times in your life early on, and how much did you have back then? And so often in—all of our stories are different, but for many of us, we think back to early in our life, times where we had so much joy and peace, and realize, "Wow, I had so much less financially back then." So clearly the money is not the driver of peace or joy. It's relationships and peace in Christ.
Rob West: Yeah, that is so true and well said. All right, John, we're continuing to construct this house here. The third wall is trust. Talk to us about how trusting God helps quiet the financial anxiety that so many listening today are experiencing about the future.
John Cortines: Well, anxiety grows when we think that our provision rests on us alone. And many people who are savers out there like me will know what I mean by this. You know, maybe you toss and turn at night: "Am I saving enough? Am I going to be okay? What if this happens? What if that happens?" Jesus reminds us in Luke 12 that the Father already knows our needs. And I would encourage anybody wrestling with that to go read that chapter, Luke chapter 12. If we have a posture of trust, it frees us to chase His kingdom first. And there's two levels to that. First of all, we trust that He knows what we need and He'll be our provider. But our even greater level of trust is in our eternal salvation. And so Rob, even if you or I die today, we each trust in Christ. We know death has been defeated, and we're going straight into eternity with Him. And so if we remember that, that gives us a peaceful heart free from financial worry in our day-to-day.
Rob West: That's right. The fourth wall, John, is of course love. And, you know, this is not something we think about often as it relates to money. So how should love shape the way we view and even use money?
John Cortines: Oh, I love this topic here, and I would argue that the opposite of love is not hate, but indifference. And it's so easy as we're managing money and living our lives to just kind of think about our own little world and be not concerned at all with what others need or with how God may be inviting us to partner in His purposes. But as we all know as believers, God is inviting us to a higher calling and to a life of love. This starts when we remember what Christ has done for us. We can look at Second Corinthians 8 and 9 on this, two amazing chapters on money. But Christ is the one who became poor and poured Himself out out of His love for us, and our joyful response is true love for others. And we can truly grow as disciples to the point where we want desperately to share our lives, share our money, share our abilities to build up the church. And that is fully living in our financial lives in alignment with His purposes, is when we want to use it all for His glory in love for others.
Rob West: Mm. What an exciting vision for our handling of money and the opportunity we have to participate in God's redemptive work in the world. Now, resting on those four walls, John, is of course the roof, and you call that our financial identity. And we've talked a moment ago about our role being that of a steward. So what changes when we see ourselves not as owners, but as stewards of what God has entrusted to us?
John Cortines: That's right. Well, there's two extremes we could go to. You know, as you said, one is ownership, and it's "mine, this financial house is mine, I'll do what I want with it." The other end of the spectrum would be a victim mentality that says, "I have no control. You know, life just happens. I can't get ahead." But a steward's mindset says, again, "All of this is God's, and I manage what He's provided for His glory." And if we see ourselves as a manager, that starts to steer our decisions towards His purposes, but it's also freeing for us, because we know that He is actually a generous and good master. If money is our master, if we're the owner, if we're the driver, that's going to leave us all spun up. But He is a good master for us to serve, and changing that identity mindset is a big deal.
Rob West: Yeah, I think that's exactly right. Now, as we continue to build this house, you tell us in the article that we furnish the house with wise financial choices. So let's talk about those everyday practices that Scripture encourages us to put in place. What would you highlight?
John Cortines: Yeah, well, these are the, like you said, the internal furnishings of our financial house. The attitudes come first, the biblical mindset. But this is the biblical wisdom that listeners hear you teach on every single day, and so no surprises here. But as we work diligently, as we spend with purpose, as we're careful with debt and even try to have none, save steadily for long-term goals, invest patiently with diversification—that's even a biblical idea to diversify our investments—to practice eager and joyful generosity and hospitality, all of this is rooted in God's Word. It's all throughout Scripture, and it represents a life of financial peace. So once we get the attitudes right, then we start making these daily decisions faithfully that lead us to God's plans for our money.
Rob West: Yeah, I think that's right. And I think we can try to jump to those decisions because, you know, those decisions are the ones staring us in the face that we're making day in and day out. But I want to circle back, just as we begin to wrap up here today, why is it so important to be sure the walls of our financial house are secure and really dealing with those inner foundations first?
John Cortines: Sure. Well, I think we can trick ourselves into a decision very easily. You know, we're so good at self-deception or justifying what we really want to do. But personally, I love to use these four checks, these four walls on my financial motivations. Let's say I have a big purchase coming up, and I want to ask, "Is this something God has for me?" First of all, I'm going to pray about it. But I'm also going to ask, "Am I approaching this from pride or from gratitude? From coveting or from contentment? From anxiety or from trust? And from indifference or from love?" And I think that is a huge mindset check of how am I approaching a decision or a major money move, and I've had that test guide me away from some things I thought I should do and actually give a green light for other things that I felt God's peace in.
Rob West: Wow, this is so good. Folks, a financial life built on Christ is strengthened by gratitude, contentment, trust, and love. This is a game changer. John, thanks.
John Cortines: Great to be with you, Rob. Thank you.
Rob West: That's John Cortines with Blue Trust. Back with your questions after this. Stick around.
Announcer: Every day, AFA offers biblical insight on issues that others aren't willing to touch in the hopes that you'll become a world-changer. That's why we're offering an in-depth worldview training course called Activate. 13 different professors teaching 18 sessions, all available online, including a printed workbook to help you apply what you've learned, and one-year access to AFA streaming content to give you even more resources. Find out more about Activate and sign up today at activate.afa.net.
Announcer: Faith and Finance is grateful for support from Eventide Investments, a faith-based asset manager pursuing investing that makes the world rejoice. Eventide invests from a biblical worldview, helping values-aligned investors pursue integrity, impact, and performance through their portfolios. More information is available about how you can align your faith with your investments at faithfi.com/eventide. That's faithfi.com/eventide.
Announcer: AFA Action takes attacks on the family seriously. The enemies of the family constantly employ new tactics to try to sneak past our radar. They know if we stand together, their evil plans will fail. Your gift to AFA Action allows us to stay vigilant against their onslaught. And if you give this month, you'll receive access to the Cultural Institute video, "When Your Faith Is Illegal" by Frank Harbor, on AFA Stream as our thanks. You can make your gift today at afaaction.net.
Announcer: We are grateful for support from Timothy Plan. Since 1994, Timothy Plan has shared good news with investors and advisors by offering faith-honoring mutual funds and exchange-traded funds. More information is at timothyplan.com. The investment objectives, risks, charges, and expenses are contained in the prospectus and summary prospectus available at timothyplan.com. Mutual funds distributed by Timothy Partners, Ltd. and ETFs distributed by Foresight Fund Services, LLC. Investing involves risks, including possible loss of principal.
Announcer: For over 40 years, American Family Association has stood for righteousness and God's truth in our nation. American Family Association Executive Vice President, Ed Vitagliano. One important way you can join us in the battle is through a charitable gift annuity with the AFA Foundation. The charitable gift annuity benefits you and it benefits the culture-transforming work of American Family Association. Phone 800-326-4543, extension 345.
Announcer: We are grateful for support from Movement Mortgage, who provides residential home loans and reverse mortgage options in all 50 states. Guided by a mission to love and value people, Movement seeks to help individuals and families make informed financial decisions, from buying a home to planning for retirement. More information is available at faithfi.com/movement. Movement Mortgage, LLC supports equal housing opportunity. NMLS number 39179. For licensing information, visit nmlsconsumeraccess.org.
Rob West: I'm so glad you're with us today on Faith and Finance here on American Family Radio. I'm Rob West. You know our goal on this program each day: to help you see God as your ultimate treasure, to understand that God owns everything, you and I are stewards, and that money is a tool to accomplish really powerful and good things, including enjoying it, including providing for our families, but yes, loving our neighbor and protecting the vulnerable and advancing the gospel. That's the privilege we have as money managers of the King of Kings.
But we also understand that along your journey, there are going to be challenges and struggles and mistakes that we all make. And then we're going to face questions as we give, save, and spend. And that's why we show up each day: to remind you of truth. And that's what we started today with as our friend John Cortines joined us to give us, you know, the foundation and the walls of this house that we're building as we go back to God's Word and we say, "What is true about how we should view money and possessions and the role we have as stewards?"
And then once that foundation is in place, we can build on that with the practical decisions that you and I have to make every day. And so that's what we want to do today is come alongside you and deal with your questions related to debt repayment. I mean, let's get real. Let's talk about how you balance that budget. Let's talk about how you invest for the future. Let's talk about how you think about protecting your identity as you navigate a digital, instantaneous world. Let's help you think about what it looks like to prepare the next steward and everything in between.
So with those questions today, no question too big or too small, as long as they're in that financial lane, we'd love to hear from you today when you call 800-525-7000. Pat Collins is standing by to take our calls today, and the team is ready to get you on the air quickly. Again, that number: 800-525-7000. We will dive into those questions here in just a moment.
In the news today, although budgeting is widely viewed as an important financial habit, many people struggle to follow the plans they create. According to Investopedia, nearly 86% of people say they use a budget regularly, but fewer than 25% actually stick to it. Sound familiar? Financial experts point to several common obstacles including overspending, rising living costs—we're all well aware of that; I had to fill up my car at the gas station this morning, I was certainly reminded of that—existing debt, unrealistic savings or spending goals make this challenging as well.
This can make it difficult, of course, for households then to stay within planned limits, especially when unexpected expenses arise. Budgeting habits can also vary across different groups. Factors like age and income and race may influence whether someone creates a budget and how consistently they're able to maintain it. The findings highlight a gap between financial planning and everyday behavior. While many consumers understand the value of budgeting, keeping spending aligned with financial goals remains a significant challenge for millions seeking greater control over their finances and continued economic pressure.
It's one of the reasons we're here each day to try to help you wrestle through those questions. Whatever's tripping you up, let's talk about it today, and hopefully we can help you get on a plan that sticks. Perhaps the budgeting app from FaithFi could help you do that as we allow you to download your transactions automatically inside the app—not moving money, but inside the app—allocating what you have in checking and savings to your envelopes. This is the system Larry Burkett created back in the '70s and '80s that I think is really still tried and true today, but we just modernized it and simplified it in the FaithFi app, which you can check out at faithfi.com.
Nevertheless, let's dive into your questions today. The lines are filling up; we still have a few open at the moment. 800-525-7000. That's 800-525-7000, you can call right now. Let's begin today in New Hampshire. Mike, thanks for your patience, sir. Go ahead.
Mike: Good morning. Thank you for taking my call, Rob.
Rob West: Yes.
Mike: My question revolves around an annuity I took out. I want to know whether it was a wise decision based on my overall plan for this annuity or not. Currently I'm 73. I took out the annuity at about 53, and at that time—by the way, this annuity will can never go negative. It can go to zero, but it can never go negative. At the time I took it out, they gave me 8%—I'm going to call it a bonus or whatever—which amounted to roughly about $25,000 additional money added to it. At about 12 years into the annuity, I changed it, I transferred it to another one, and at that time, they gave me an additional 22% of what I had in there, which amounted to about $110,000. And now, if I wait another three and a half years, I can transfer it to yet another annuity and they will give me—I believe it's 45% or close to half a million added to that annuity. Now, this annuity will never be cashed in by me. It will go to my heirs—my children and grandchildren. So, that means that all of this additional money is not going to be removed as if I were to have taken that money to live on. I will never need this to live on. Did I make a proper decision based on this fact that I will never access this money myself?
Rob West: Yeah. Yeah, very good. Really great overview there. And I think just for the benefit of our listeners, I think, you know, understand what this word "bonus" that Mike's using actually means. It means, you know, if you don't need it for retirement income and you're primarily using it as an inheritance vehicle, you know, I would evaluate it based on what your heirs are actually guaranteed to receive, not the bonus percentages. Because an 8 or a 22 or a 45% bonus doesn't necessarily mean a 45% return or that another half a million dollars becomes freely available cash. Typically, that just means that's an income benefit base, so it's a bookkeeping value used to calculate future income, often not withdrawable cash, and the amount the beneficiaries may receive when you pass away may be a different number altogether. Let's talk about that and a few other things right after this break. Mike, stay with us. We'll be right back.
Announcer: Feeling burdened by credit card debt? As faithful stewards, we are called to manage our finances wisely. Christian Credit Counselors can help with a debt management program that allows you to pay off debt up to 80% faster while honoring your commitments with integrity. Don't let debt hold you back from the life God has planned for you. Take the first step toward peace and financial freedom today. Visit faithfi.com/ccc or call 800-557-1985.
Announcer: Let's think about what God has done. I would wager that his top news story is still that the free salvation through the blood of Jesus Christ is available to all. I wager that will be the top news story until that salvation is no longer available. You will have made your decision for eternity. He doesn't ask us to do anything he won't, and then he does above what we can possibly do. Hear Todd Herman on A Disciple's View, weekdays 12:00 PM Central on AFR.
Announcer: Faith Fi is grateful for support from Sound Mind Investing. For more than 30 years, they've offered financial wisdom for living well. SMI provides step-by-step guidance for do-it-yourself investors, from those just getting started to those getting ready for retirement. More information, including the short video webinar on profit and peace of mind no matter what's happening in the market, is available at soundmindinvesting.org.
Announcer: Money always seems to ask for more. More income, more savings, more security. But what if the better question is, how much is enough? This Faith Fi Field Guide isn't just a book to read, it's a practical guide that helps you prayerfully answer that question for your own life, one step at a time. Order your copy of How Much Money Is Enough? today at faithfi.com/shop. That's faithfi.com/shop.
Announcer: At Wesley Biblical Seminary, we believe God is raising up a movement across our nation and around the world who hold fast to the inerrancy of Scripture and the hope of holiness. We do this through bachelor's, master's, and doctoral degrees, certificate programs, and even training for laypeople. So whatever your next step is in being equipped for ministry, we're here for you. And if you believe these are the kind of pastors we need leading churches in the future, we invite you to think about giving to Wesley Biblical Seminary. Learn more about us at wbs.edu.
Announcer: Every day, thousands of women face an unexpected pregnancy—scared, alone, and unsure where to turn. Faith Fi is partnering with Preborn and you to bring the hope of Jesus to these mothers through free ultrasounds at pregnancy centers across America. When a mother sees her baby's heartbeat, everything changes. Your gift of just $28 saves a life and shares the love of Christ. Give today at faithfi.com/preborn. That's faithfi.com/preborn.
Announcer: This is American Family Radio, a listener-supported ministry of the American Family Association.
Rob West: Thanks for joining us today on Faith and Finance here on American Family Radio. I'm Rob West. Before the break, we were talking to Mike in New Hampshire. Mike is 73 years old, has an annuity he began at age 53. They gave him an 8% bonus at the beginning, later a 22%. His initial investment and none of the gains, he understands, will be reduced as long as he keeps it until death. He's wondering if he made a good investment. By his understanding, it should be worth $3 or $4 million at the end of his life, and he doesn't plan to use any of it. He has other income and assets to cover his expenses for the rest of his life. And he's wondering if, you know, then passing it on at that point makes sense. He also has an opportunity to do yet another transfer and get what he's hearing would be up to a 45% bonus, or a half million dollars, that he would have access to.
And I was saying before the break, Mike, just that you need to be careful with this word "bonus" and just understand there's a difference between the bonus and how it affects the income base that they use to determine what income stream you'll get, which you're saying you're not going to use, versus the death benefit value, the amount your beneficiaries would receive when you pass away while the contract is in force. And that's why I would want to know exactly which value is receiving that 45%, because the Securities and Exchange Commission has warned that annuity bonuses, you know, can be offset by higher fees and longer surrender periods and restrictions, and some bonuses are even forfeited under certain circumstances.
So, you know, is it a good investment? Possibly. You know, if you've held it for 20 years, you've received valuable guarantees, you don't need the liquidity, the contract provides substantial guaranteed death benefit, then it could have accomplished exactly what you're looking for. But I would just check on this idea, or clarify, you know, this expected $3 to $4 million that you're thinking it'll be worth at death. I would probably ask to the company, "Is the $3 to $4 million the guaranteed death benefit showed in the contract, or is that a projected value based on assumptions?" Because those are very different.
I'd also want to know, you know, whether withdrawals would reduce the death benefit. And then I would—I would be really cautious about transferring it again for this, you know, really high bonus. I'd investigate that. I'm not saying you shouldn't, but, you know, if someone at 73 looking to do an exchange for an existing annuity for another annuity because of this bonus, don't make it purely on the bonus. You're going to want to know, you know, does this start a new surrender period? It likely does. Does it introduce higher fees? Could you lose guarantees that you had under the old contract? So you're going to probably want to see a side-by-side comparison, just so you understand, you know, in writing, the difference between keeping the current annuity versus taking the new 45% bonus with the exchange, and get the current cash value, you know, the current account value, the guaranteed death benefit, the projected death benefit, the cost basis, the annual fees, and then look at those things side by side. Now, I know I've thrown a lot at you, so let me stop there and just get your thoughts.
Mike: Uh, I agree with you that if there is a—there's a surrender value if I were to start taking any monies out. But I am told by my financial person that even if I were to pass away a week after I did this additional transfer and got the—the 45%, my overall death benefit would include that total sum to be paid to my heirs. But if I were to take any of that, like you say, ahead of time, then there are a lot of things, uh, that I would lose. But that's not my plan at all.
Rob West: Yeah. No, that—that makes sense. You know, I think I would just, probably given the significance of this, um, you know, I would probably ask for that in writing. Um, you know, it—it could be true that this particular product provides an enhanced death benefit base that becomes effective immediately, um, but I would want to know that because that's an important claim. And, you know, I would want to verify it directly in the new annuity contract before proceeding, just to make sure that there's no, you know, misunderstandings there. Um, you know, annuities can have riders specifically designed to provide enhanced death benefits, but the terms vary dramatically between contracts. So I would just say, you know, "This—this all sounds great. Can you show me an actual contract where it says that if I die, uh, you know, immediately after the exchange, my beneficiaries receive the entire 45% bonus in addition to the amount transferred, with no vesting period, no reduction, no clawback, no waiting period?" Um, and—and I'd want the insurer to confirm that in writing.
Mike: Good point. I will do that.
Rob West: Okay. Otherwise, yeah, I mean, I think you're on the right track here just in terms of what you're planning for, and, um, you know, this could be a—a great, an incredible blessing for your heirs. And then the next step is just to make sure you're passing wisdom before wealth. And, uh, this fall we've got a new field guide coming out called How Do I Prepare the Next Steward? that really helps you think about what it looks like to be intentional to pass spiritual capital and character capital and relational capital before the financial capital. And I think, you know, that's another piece of this as well. But other than that, Mike, sounds like you're on the right track.
Mike: Thank you very much. I appreciate your confirmation on that.
Rob West: All right. Lord bless you, my friend. Call anytime. Let's go to North Carolina. Hi, Miles. How can I help?
Miles: Hey, good morning, Rob. Uh, my wife has quit working several years ago, but now that she's turning 55, has the opportunity to take a retirement from her previous job, uh, $440 a month or a lump sum of $58,000. I just want to get your thoughts on that.
Rob West: Hm. Yeah. So I'd want to find out exactly what kind of account it is. It could be a 403(b), could be a pension annuity, could—could be another qualified retirement plan. That's going to determine what distribution choices you have and how they're taxed. Um, so what is the main question you're—you have at this point, just related to this account?
Miles: Yeah, uh, it's—it's a pension plan, and I'm just curious, uh, you know, with the—if the, you know, if the math makes sense to take that lump sum, or if it makes sense to take the, uh, monthly payment.
Rob West: Ah, yes. Do you have an—a good understanding of what either option provides?
Miles: No, I don't guess I do.
Rob West: Okay. Yeah, so that—that's probably what you're going to want to look for and—and ask for, because this is a classic decision that—that most people, you know, have to make. Um, and so you want to do the comparison between the lump sum and the monthly pension. Neither is automatically better. The math depends heavily on the monthly amount offered. And so, you know, you would want to ask the pension administrator for the exact numbers. So if the lump sum's 58, what is the monthly single life pension—X amount, uh, you know, dollars per month for life? And then what is the monthly joint and survivor pension, so it'll be a different number for life when it's on two lives, you and your survivor? And then, you know, the amount you would receive if she dies first. And then you're going to want to know whether the monthly benefit has an inflation adjustment or a cost-of-living adjustment.
And then you can simply calculate the break-even age. So for example, um, suppose you can choose between 58,000 as a lump sum or 500 a month for life. Well, 58,000 divided by 500 is 116 months, so that's almost 10 years. So if you live longer than roughly 10 years after starting the payments, you know, she would have received more than 58,000 in nominal pension payments. Um, so I think, you know, that's one of the ways that—that we can handle this and calculate that break-even. Let's do this: I want to see if you have any other questions. We'll do that during the break here, so stay right there, Miles. We'll chat a bit more. We'll be right back.
Announcer: The Book of Revelation is filled with dramatic events—from God's judgments to Satan's demonic attacks and the rise of the Antichrist. But this week on Pathway to Victory, Dr. Robert Jeffress builds up to the most important event in human history: the return of Jesus Christ. Join us for a study in Revelation called Final Conquest, this week on Pathway to Victory. Weekday mornings at 6:00 Central on American Family Radio.
Announcer: You can hear amazing things on American Family Radio. Doug Cobb’s Finishing Fund is working to bring the gospel to those remaining tribes and tongues and people who haven't yet reached the gospel. How close are we to that goal? We are within a handful of people groups, as he described them, all over the world. So literally, within a matter of months or very few years... That clip shows just how close we may be to Christ's second coming, and it also highlights the importance of ministries like AFA and AFR. Thank you for listening.
Announcer: As the leading advocate for the Christian financial industry, Kingdom Advisors serves the public by promoting the integration of a biblical worldview across every aspect of the financial services industry. And we serve a growing network of thousands of Christian financial professionals, equipping and empowering them to carry biblical financial wisdom to their clients, peers, and community. For more information, visit KingdomAdvisors.com. That's KingdomAdvisors.com.
Announcer: Wondering who Faith and Finance recommends as a banking partner that aligns with Christian values? It's AdelFi Christian Banking, the trusted team you've known as Christian Community Credit Union. With high-yield checking, savings, Visa cashback cards, and a competitive money market account, your everyday banking helps advance the gospel. Visit faithfi.com/banking and use the code FAITHFI. Membership eligibility required. Accounts are privately insured up to $250,000. This institution is not federally insured.
Rob West: Great to have you with us today on Faith & Finance here on American Family Radio. I'm Rob West. We're taking your questions here in this final segment. We've got room for one to two more in addition to those holding at 800-525-7000. That's 800-525-7000.
Before the break, we were talking to Miles in North Carolina. His wife has an annuity from work, about $58,000. She is retired with a child that has special needs at home. He's asking about disbursements from that annuity—the pension plan—and wondering if the math makes sense to take the lump sum or the monthly payment. I was able to clarify during the break: the monthly payment being offered on a single life (hers) is $440 a month, and on both lives, $420. He's got a military pension, a little over a million dollars in retirement, and the house is paid off. They're in good shape, just wondering about the taxes and the best option given the opportunity cost and the internal rate of return on taking the lump sum versus taking the monthly pension.
And I think, with those numbers, your instinct is right, Miles. Just doing some quick calculations here, I think the pension looks attractive and is very reasonable, assuming she's in good health and the $440 is a true lifetime benefit. Because at $58,000 versus $5,300 a year, that's about a 9.1% return. Now, that's not a quote, "investment return," because the pension is also effectively returning principal over her lifetime, but it's a strong payout relative to the lump sum offer. I mean, if you compare that with the 4% rule, that would be $2,300 a year, or $193 a month. At $440, we're more than twice that initial amount.
Now, the difference is, with the $58,000 invested, you still own the remaining portfolio and potentially can leave it to heirs. With the single-life pension, the $440 would stop when she dies—that's, of course, the tradeoff. But as you said, you have plenty of other assets. What if you earned 7% as a hypothetical annual return? Well, that would only be $4,000 a year, so you're still below the pension's $5,300. But there's an important distinction: the 7% return is not guaranteed, and some years could be 20% plus, other years could be negative, while the pension provides that predictable lifetime income. So, and the taxes really don't change anything in my mind. So, I'd lean toward the pension, just based on everything you've given me.
Miles: Sounds great, Rob. I appreciate your help. I enjoy listening to your show.
Rob West: All right, buddy. Well, I appreciate you. Listen, if you think of anything else or I can help further, don't hesitate to call back, but sounds like you're on the right track here. Let's go to Huntsville, Alabama. Vicky, how can I help?
Vicky: Yes, Rob. Thank you for taking my call. My husband passed away about almost four years—three and a half, almost four years ago, and he had a credit card. My name is not on it, and I have been paying more than the minimum on it. Am I still—I've been thinking about it—am I responsible to pay that off?
Rob West: Yeah. Boy, it's a great question because, theoretically, you may have been making payments on a credit card debt that you were never personally responsible for. If they were solely in his name and you were neither a joint owner nor a cosigner, then you're generally not personally responsible for those balances merely because you were his wife.
Normally, when he passed, a valid credit card debt should have been claimed against the estate. If the estate didn't have enough assets to pay them, then the remaining debt would go unpaid. You know, I think the next step here, because you've already been making voluntary payments for three and a half years, I would perhaps have a probate attorney—whoever handled this when he passed—review the situation before you make major changes. State law matters, and I'd want the attorney to determine whether those payments affected anything legally. You'd generally want to get it in writing, but I think consulting that attorney is probably your best option in terms of where you go from here because, again, the state rules will tell you whether there's spousal liability exceptions that you need to be concerned about. That's ultimately what it's going to come down to.
Vicky: Okay. I appreciate it. I've been paying this all this time, and I'm just wondering if I'm making payments on something that I really—I'm not responsible for. But you answered my question.
Rob West: Very good. Hey, stay on the line, Vicky. I'm going to send you a gift—it's a book called Wise Women Managing Money that I think will be a blessing to you. A good friend of the ministry wrote this and started a ministry, actually, when her husband passed away. I think it'll be an encouragement. I'd love to put it in the mail to you, so just stay on the line there. We'll send it to you as our gift. Thanks for calling today.
800-525-7000. We've got room for maybe one more question in addition to Carol's, which is where we'll head next out to Michigan. Carol, go ahead.
Carol: Thanks for taking my call. I've been talking with a CKA financial advisor, and he has a fee of, I believe, 0.95%. And we have $240,000 to work with. I'm 60, my husband's 63, and we will be getting that money if we sell our house, which we plan on doing. I guess what I'm wondering is: Would it be best to go with a financial advisor like him or attempt to invest on my own? I do have a disability with the computer, so I can't use it very often, so I'm leaning towards the financial advisor, but I just kind of wondered your thoughts on that.
Rob West: Yeah. And what did you say the fee was?
Carol: 0.95%.
Rob West: Yeah, which is very reasonable, I would say, in terms of what a typical advisor would charge. That's on the low end, for sure.
You know, you absolutely can do it on your own. You could open a self-directed brokerage account that would be less expensive, so to speak, "quote-unquote," and build a portfolio of diversified mutual funds or exchange-traded funds. I think, though, the real benefit here would be the advisor bringing to the table a rules-based and professional approach to the management of the assets, especially when the markets head down. It's one thing when the market's going straight up, but we hit a recession, and being able to think about not reacting emotionally—which a lot of people do when they're managing their own money and perhaps pulling it all out, which can often be the worst thing you can do in a falling market because then you never know when to get back in and you can miss when it turns around, which often happens a lot sooner than people expect—not to mention just in terms of the actual portfolio itself.
Then you get the planning that goes along with it, which is considering the tax implications and how any kind of distributions are going to affect your IRMAA on your Medicare and your overall taxation. So, I think there's just a lot of benefits to having that advisor in place. Yes, there is an added expense there, so roughly an extra $2,400 a year—that's not insignificant—and yet, I think the value of that, both in terms of how he or she can protect the assets, grow them over time, really bring a thoughtful approach to the investment selections, and then the planning on top of it, is far superior to the actual cost that you would spend out of the portfolio. So, that's going to be my approach: that the advisor is the way to go when you get to this place where you have a quarter of a million or more, because often that would be the minimum for many advisors.
And I think the other piece is just having a CKA brings that biblical perspective as well, not to mention the additional regulatory review, pastor and client references, and so forth. At the end of the day, that would be my recommendation, Carol.
Carol: Okay, well thanks. That really helps. I appreciate it.
Rob West: Absolutely, you're very welcome, and we appreciate you being on the program today. If you have other things along the way, don't hesitate to reach out.
Well, folks, what a treat to be with you today. Let me remind you of just a couple of things before we wrap up the program today, because we are right up near the end. Number one is, we have just a few days left in our partnership with Preborn. We're so thankful, and I know AFR listeners are very well acquainted with the incredible ministry of Preborn, providing free ultrasounds, sharing the gospel, providing much-needed resources, diapers, and other needs for moms that choose life. And we're partnering with them at FaithFi here until August 31st. We set a goal to fund 1,500 free ultrasounds. We're over 1,000, but still have about 500 more free ultrasounds to go. Every $28 given is going to fund one of those free ultrasounds. More than half the time—in fact, significantly more than half the time—when a mom sees her baby on an ultrasound, she chooses life. And then Preborn shares the gospel with her, and then they journey with her with some much-needed resources. It's an incredible ministry.
If you would like to come alongside Preborn and FaithFi and help to take 1, 5, 10, or 25 of these free ultrasounds, we would love for you to head over to faithfi.com/preborn. Again, every $28 given is going to help us fund one of these free ultrasounds, and we would love to reach and then go right past that goal of 1,500. But it's going to take a big week this week as we head toward our August 31st deadline. Again, that website: faithfi.com/preborn.
Folks, I'm so thankful that you join us each day on this program. It's such a privilege to come alongside you along with this amazing team, like Pat and Devin and Taylor and Afton and Ashley and everybody here at FaithFi that makes this possible. It's our privilege to come alongside you because here's what we know: when we get this area of our finances right—not meaning we make all the right decisions, but get it right in terms of seeing Christ as our ultimate treasure, seeing money as a tool, realizing that faithfulness is the measure, the next faithful decision right now, not in the future, today, what is the next faithful decision—that when we do that, it results in a more intimate relationship with the Lord. There's just something about putting this area of our lives, money, under the lordship of Christ. We often kind of hold it out of the water symbolically and say, "No, no, this part's mine." No, it all belongs to Him, and when we surrender it, incredible things happen. And then we can hold it loosely and give it generously to support the incredible work of ministries like AFA doing culture-transforming work, and FaithFi, helping God's people manage God's money God's way. That's the privilege that we get.
So come back and join us tomorrow. Lord willing, we'll do it all over again. Until then, may God bless you. We'll see you then.
Announcer: The views and opinions expressed in this broadcast may not necessarily reflect those of the American Family Association or American Family Radio.
Our financial lives stand or fall on the foundation we choose. Jesus said the wise man built his house on the rock; when the storm came, the house stood (Luke 6:48). The same is true of our financial lives. On this Faith & Finance on AFR, Rob West and John Cortines describe how to build a financial house on the wisdom of God’s Word. Then, it’s on to calls.
(00:00) Rob West is joined by John Cortines as they discuss building your finances on God’s word
(08:34) Rob West and John Cortinues continue their conversation
(22:33) In the News: The struggles of sticking to a budget
(24:45) Caller Mike: Evaluating his annuity
(31:20) Rob West continues his conversation with Mike about his annuity
(37:28) Caller Miles: Deciding on taking pension as lump sum or as monthly benefit
(42:30) Rob West continues his conversation with Miles regarding pension options
(45:05) Caller Vicky: Responsibility for deceased husband’s credit card debt
(47:31) Caller Carol: Choice of investing on your own or hiring a financial advisor
Our financial lives stand or fall on the foundation we choose. Jesus said the wise man built his house on the rock; when the storm came, the house stood (Luke 6:48). The same is true of our financial lives. On this Faith & Finance on AFR, Rob West and John Cortines describe how to build a financial house on the wisdom of God’s Word. Then, it’s on to calls.
(00:00) Rob West is joined by John Cortines as they discuss building your finances on God’s word
(08:34) Rob West and John Cortinues continue their conversation
(22:33) In the News: The struggles of sticking to a budget
(24:45) Caller Mike: Evaluating his annuity
(31:20) Rob West continues his conversation with Mike about his annuity
(37:28) Caller Miles: Deciding on taking pension as lump sum or as monthly benefit
(42:30) Rob West continues his conversation with Miles regarding pension options
(45:05) Caller Vicky: Responsibility for deceased husband’s credit card debt
(47:31) Caller Carol: Choice of investing on your own or hiring a financial advisor
Live
Did you know American Family Radio is listener-supported? Your monthly financial support will allow us to continue upholding Godly values through our numerous channels, like American Family Radio, One Million Moms, The Stand magazine, and many more.
Become a Great Commission Partner TODAY to help AFR transform culture by rebuilding the family. When you donate today, you’ll get access to:
