Life Planning

Rob West: Psychologist and educator Fitzhugh Dodson wrote, "Without goals and plans to reach them, you're like a ship that has set sail with no destination." I am Rob West. Of course, goals don't amount to much unless you have a plan to reach them. That planning should involve more than building your net worth. Ron Anderson joins us today to discuss life planning: what it is, how to do it, and why you should. And then it's on to your questions 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, my friend, Ron Anderson, is a Certified Kingdom Advisor. He has 30 years experience helping folks across the country plan and set goals for financial affairs. He's the founder and president of Plan A Wealth Management based in Lincoln, Nebraska. Ron, great to have you here.

Ron Anderson: Hey, thanks Rob. It's great to be here.

Rob West: Ron, you've been a successful financial planner for a long time. You've helped a lot of folks, but it seems lately that the Lord has really burdened you with an additional passion that I'll call life planning. Now, that sounds self-explanatory, but I suspect there's more to it, isn't there?

Ron Anderson: Yeah, I would say the more to it is really thinking about what is your purpose. How are you going to make a contribution? You need to know what your financial goals are, but why do you want to be successful? What are you going to do with your time and your life, if you're on track financially, to make that bigger contribution that God put you here for?

Rob West: Yeah, I love that. It's this big why. Let's build on that. So then what is really the purpose of life planning?

Ron Anderson: I think the purpose is to ask yourself some really tough questions. You know, why do you want to be successful? Why do you want to reach your goals? And if God allows you to do that, what are you going to do with your time? How are you going to fulfill that unique purpose and contribution that God put you here to make? How do you figure that out? What questions do you want to ask yourself to determine and narrow down what makes me special and unique, and how can I use that to further God's kingdom?

Rob West: Yeah, it makes me think about that iceberg illustration that our friend Ron Blue talks about—that 10% above the waterline is the financial decisions, but it's the 90% below, the why and your values and your faith, that really matter. So, Ron, how then can a financial planner help with life planning?

Ron Anderson: I think a financial planner can really help someone set a reasonable lifestyle so that they know how much they can spend, helping them save enough for their future, which really frees them up if God nudges their heart to do something different with their time, or with their energy, or occupation. They have the margin in their lives to be able to say, "Yes, Lord, I will follow," as opposed to, "I can't afford to do this." So it also gives you another person to think your confusion out loud with. As you're talking about your goals, you can also talk about, "Well, I feel like this is something I maybe am supposed to be a part of," and gives you somebody to bounce those ideas off. I think you actually figure out a lot by talking to somebody about what you're thinking. You thinking it out loud helps clarify it in your mind.

Rob West: Oh, well, and perhaps even challenging you along the way. I love that you mention the reasonable lifestyle, because I know one of the things you do is help your clients find enough so that they have the capacity to respond to the leading of the Lord, right?

Ron Anderson: Absolutely, and be able to give generously along the journey.

Rob West: Ron, take us into Scripture. What does Scripture say about life planning?

Ron Anderson: You know, one of the favorite Scriptures I have related to life planning is in Ephesians chapter 5, and it basically says, "Be careful how you live. Don't live like a fool, but like someone who's wise. Make the most of every opportunity. Don't act thoughtlessly, but understand what God wants you to do." And how do you understand what God wants you to do? You spend time with God, you think, you ask questions, and you try to listen to God's voice.

Rob West: Mm. That's great. Ron, what have you seen play out in the lives of your clients as you've taken them through this process?

Ron Anderson: One I can think of in particular, you know, they gave away a large gift, and they actually went overseas and translated the Bible undercover in Eastern Europe. And they were able to do that and fund their own ministry doing it that way. Then they came back to the States after they were done, and they bought a place to give others rest in Colorado. So they used the money that God had blessed them with, and now they're using that as a blessing to people that are in ministry to give them rest, because so many people are going so fast today.

Rob West: Wow. Well, that's far more than the typical financial planning engagement. Those are life-changing, kingdom-building outcomes. I love it. Ron, thanks for stopping by today, my friend.

Ron Anderson: Hey, thanks Rob. Great talking to you.

Rob West: If you want to learn more about Ron and Plan A, you can head to planawm.com. Again, that website: planawm.com. We're going to take a quick break, back with your financial questions after this: 800-525-7000. 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. In John 17, right before Jesus goes to the cross, He prayed out loud as His disciples listened. And Jesus prayed for many things, including for people who feel out of place in this world. Can you relate to that? Following Jesus is something the world does not understand, but He does not intend for us to retreat or hide. He's sent us on a mission. Jesus prays, "As You sent Me into the world, I have sent them into the world." Which means your job, your neighborhood, your school—it's all part of God's mission field. So remember, you've been sent into the world by Jesus Himself. Go in His name and reflect His love. Get more encouragement for your walk with Jesus at haventoday.org.

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Rob West: So glad to have you with us today on Faith and Finance here on American Family Radio. Well, Ron Anderson is a great example of the kind of counsel you'll find when you connect with a Certified Kingdom Advisor and align your faith with the professional financial planning and investments that you're receiving from your advisor. So if you're looking for an advisor, perhaps it's time for you to engage someone around comprehensive planning, or maybe it's estate planning, perhaps it's investment management. Maybe you're thinking about this new idea that a lot of Christians are really uncovering, and that is to align my values with my investment portfolio, and you want an advisor who can help you do that. That's where a Certified Kingdom Advisor can come in, and you can find one in your area when you head to findacka.com. That's findacka.com.

All right, we're going to dive into your questions here in just a moment. That number to call today: 800-525-7000. Again, that's 800-525-7000. Any financial question today, whatever you're thinking about in your financial life, we'd love to tackle it with you. You can call right now.

In the news today, as new federal borrowing limits take effect, some students may turn to state-backed education loans. However, consumer advocates warn that these loans often resemble private credit more than federal student aid. Rates, eligibility rules, borrower protections—they all vary widely. Some state loans offer competitive rates, but others exceed 10% and may require strong credit or even a cosigner. So borrowers need to understand the differences, and may also need to live in the state or attend an in-state school to even have access. Keep in mind, unlike federal loans, state loans generally do not qualify for federal income-driven repayment options or even the Public Service Loan Forgiveness program. Some states offer their own repayment assistance or forgiveness programs, but these protections are not universal; they, of course, vary by state. Experts recommend exhausting grants, scholarships, maybe working on campus, certainly saving in advance, delaying college, or maybe going for more of an in-state community college option, at least for the first couple of years, if the funds aren't available, and federal loans before considering state or private options. But always compare interest rates, repayment terms, cosigner requirements, and default consequences carefully before signing. So just keep that in mind—a lot of people looking elsewhere as these new federal borrowing limits take effect.

Rob West: All right, we're ready to dive into your questions today. We've got a few lines open. Calls are coming in, but we've got room for you at the moment. That number: 800-525-7000. You can call right now. Let's head to Louisiana. Thomas, you'll be first up, sir. Go ahead.

Thomas: Hi. Good morning, Rob.

Rob West: Hi there.

Thomas: I really enjoy your program. There was a question you had yesterday on transfer of death on deed, and sparked some interest in our situation. We live in Louisiana, and my wife's parents live in Texas. They're both in their mid-90s. They get around pretty good, I guess, for that age, but they have their heels dug in; they're not going anywhere. So we go up once—we go up once a month, and I take care of the yard, and we do take them to doctors' appointments and things of that nature. But anyway, so they really need a car there because their car's really accessible for them. So whenever we go, we take their car, so it's driven once a month. Now, they don't have a driver's license, and that is where the problem comes in. Because we've already done the transfer of death on deed, but you have to—we found out that they have to have a driver's license in order to have it registered each year. Which, first of all, we don't want them to have a driver's license, and second of all, they can't—they probably wouldn't be able to get one.

Rob West: Yeah, yeah.

Thomas: So, what do you think about that?

Rob West: Yeah, so what is the main issue you're solving for, though? What is it you're trying to figure out?

Thomas: Well, we can't—we can't get it registered. We can't get it registered because they don't have a driver's license, if it remains in their name. We've already done the transfer of death on deed, but we can't get it—they now—they did it this year, this past—well, this year, they did it and they said they're not going to do it again. They just kind of did it out of courtesy, I think. But that's the DMV I'm talking about.

Rob West: Yeah. You know, my understanding is—and you may want to look into this—is you don't have to have a driver's license to own a car and both own and insure a vehicle. And so, you know, perhaps it's an online renewal system that won't process it without the Texas driver's license. But I think in many cases, at least I would give this a shot, you could go down to the county tax assessor's office and process that renewal in person with another form of, you know, a government-issued photo ID rather than a driver's license. So I would really press into that a bit more just to make sure. Now, if in fact the county says, "No, absolutely not. You can't renew the registration under your parents' circumstances," then I think the practical solution would be to go ahead and transfer the title now, rather than the TOD to take effect at death, to the family member—and maybe that's you or your wife—you know, who is going to receive it, and who's actually maintaining and using the vehicle. And then you could, of course, register it and insure it in your own name, and then continue to use it for their care, as you said, once a month as you arrive in town. But I would, you know, press into that and just see if it's possible in person with an explanation to keep it in their name without that active driver's license and go ahead and get it registered.

Thomas: Yeah, we tried that. So, I didn't know if you knew of another way, but...

Rob West: Okay. So you went in and tried to use another form of ID and they shut it down?

Thomas: No, we actually didn't go in in person. We called the DMV and asked that question, and it just doesn't make much sense to me. I mean, it does in a way, but... but it kind of puts us in a situation. But that's okay. But anyway, hey, I appreciate your input on it.

Rob West: Yeah, absolutely. I mean, I think it might be worth, just because of the hassle factor, it might be worth just showing up in the county tax assessor's office and walking up to the terminal and just having a conversation and seeing if it could be processed in person. A lot of times, you know, you can have a little more leverage or somebody who's willing to work with you face-to-face. So I might give that a shot. But then I think, of course, the next option would be just to go ahead and get it transferred. You know, you're using it, you're the one maintaining it, it sounds like, and keeping it in good working order and using it for their benefit. But obviously, it's got to be registered in order to do that. So, but I appreciate your call, Thomas. Hopefully, that's given you a few things to think about. And if we can help further along the way, don't hesitate to reach out, okay?

Thomas: Thank you, sir.

Rob West: All right. Lord bless you. 800-525-7000 is the number to call. We're going to be taking more questions right after this next break. We'll head out to Mississippi and talk to Wendy. She's wondered about a pension plan that has recently been stopped by her employer, has to be rolled to a 403(b) or cashed out or taken monthly. She's wondering how to think about that. And more questions as well, talking to Leonard in Alabama after that. But we do have room for you. If you've got a question, call right now: 800-525-7000. Hey, we launched our first-ever field guide. That's right—a single question, one of the top questions that we get asked, looking at it through a biblical lens, the biblical perspective, the actionable worksheets, and the case studies. Field Guide Number 1: How Much Money Is Enough? Setting a Lifestyle and a Lifetime Finish Line. We're so excited about it. They've been flying off the shelves, and they're available right now at faithfi.com/shop. That's faithfi.com/shop. Back with your questions after this.

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Announcer: One of the greatest concentrations of young people and one of the most fertile missionary fields is the community of students in public schools. And we have a way to reach them. It's Truth for Youth Bible Week with Revival Fires International. I'm so happy that my friend gave me the Truth for Youth Bible. Visit tfy.org anytime, or call 800-733-4737 between 8:30 a.m. and 4:00 p.m. to order or donate. It's Truth for Youth Bible Week with American Family Radio.

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Rob West: So glad to have you with us today on Faith & Finance here on American Family Radio. Well, it's Truth for Youth Bible Week. That's right. What an opportunity. You've probably seen those big yellow school buses rolling, maybe in your area. You know, perhaps not. Some parts of the country clearly still fully in summer mode. I know here where I am in North Atlanta, we're back to school. We saw everybody going back to school on Monday. I've got two seniors, twin girls that are starting their senior year. Everybody else is out of the house, but they're back to school. And we're in full school mode here, but that brings up a great opportunity. We partner every year with Revival Fires International, and this is the week. It's National Truth for Youth Bible Week, which just simply means we want you to help us give away thousands of free Bibles to young people across America. We have a big goal this year. We want to get 65,000 Bibles into the hands of teens. They're able to hand them off to a friend or a classmate that needs the truth, the gospel of Jesus Christ, as long as they do that during non-instructional hours. It's a Bible designed for kids, meaning it's the entire New Testament, but the graphics, the full-color comics that present the gospel and tackle moral issues in the middle are right there. So, it really is kid-friendly. But it's God's word. And you're helping us reach this goal. We're on our way to get there, but we don't need to let up. So, if you have a young person in your home that you would like to have one of these Bibles to hand off to a classmate at school, or you want to order some to give to others who have kids, or maybe you just want to support this work and help pay for these Bibles that are accessible free to young people who can hand them off in school, head to the website tfy.org. That's Truth for Youth, tfy.org. Or you can call—right now, there's volunteers standing by at 800-733-4737, 800-733-4737, anytime between 8:30 and 4:00 Central. Those lines are staffed, and they will put some Bibles in the mail to you or take your gift. Again, National Truth for Youth Bible Week. Go to tfy.org or 800-733-4737, and let's get God's word into schools across America. All right, looks like nearly all the lines are full, so we're going to try to move through as many questions as we can here. Let's go to Mississippi. Wendy, thanks for your patience. Go ahead.

Wendy: Thank you for taking my call this morning.

Rob West: Yes, ma'am.

Wendy My question is, I am faced with the decision of a pension plan that's being stopped at my employer, and they've given us the option to roll it into our 403(b) that we have with them, or taking a lump-sum cash payout, which I understand has fees and penalties, taxes, those type things, or doing the annuity where you have the monthly payment. I think that also has fees. My first instinct is just to roll it over to my 403(b). And then I got to thinking, the closer it gets to the date of decision, should I take a lump sum and maybe pay off debt? I don't have much debt, but I want to make the wisest decision.

Rob West: Yeah, I appreciate that. What did you say your age was?

Wendy: 56.

Rob West: Okay. And you plan on still working for the foreseeable future, correct?

Wendy: Correct.

Rob West: Yeah, got it. Well, it's a great question, and I would really lean strongly toward not taking anything out. We don't want to take that taxable lump sum, because if you do, you of course, as you said—yes, you could eliminate high-interest debt, potentially, but you said you don't have a whole lot, and you could get access to the money immediately. But that's going to be taxed as ordinary income, and there's going to be a 10% early withdrawal penalty because you're under 59 1/2. Not to mention just the opportunity cost, which is simply right now that's in a tax-deferred environment. You can only put so much in a tax-deferred environment each year, and that's a real asset, because as it's invested and as it grows for the future to be available in a retirement season of life to supplement Social Security or to be used for extra spending or maybe specifically for healthcare-related costs, probably your biggest risk in that season of life, as it's growing, the taxes are not placing a drag on the investments through capital gains tax because it's inside that pension, soon-to-be either IRA or 403(b). So, there's just a real benefit, Wendy, to you leaving it in that tax-deferred environment. So then the question is, okay, if I'm going to do that, do I roll it to the 403(b) or do I roll it to an IRA, which keeps it in that tax-deferred environment, gives you more investment choices, but with more investment choices comes more complexity. So, my recommendation is going to be: let's focus on getting out of debt through current cash flow and just keeping a good tab on your income and spending, and try to carve out some margin to really go after that debt. But let me leave this retirement plan fully intact and roll it into that new 403(b). That's going to keep everything simple because everything's in one place—both your pension money and then your future salary deferral retirement contributions to that new 403(b) all in one place. That means one statement. That 403(b) probably has a limited menu of investment options, which just simplifies things a bit, and it keeps everything focused toward growing for the future so that you're going to have that nest egg down the road. And I think you'll be glad you did. Does that make sense, though?

Wendy: It did. It made 100% sense, and that's where I was leaning. I just wanted some confirmation that I was doing the right thing.

Rob West: Yes, ma'am. I think you're making a great decision. Your instinct was right, and if I can help further along the way, don't hesitate to reach out. Lord bless you, Wendy. Thanks for being on the program today. Call anytime. To Alabama, hi Leonard. Go ahead, sir.

Leonard: Hi Rob. I'm a long-time listener, first-time caller.

Rob West: Okay.

Leonard: My question is, is there an insurance company that you can recommend, both property and automobile? I've been a long-time customer of one of the major insurance companies and have had no moving violations or...

Rob West: You know, I wish there was, Leonard. There really isn't, at least that I'm aware of. And if there's one I'm missing, I hope somebody lets me know. But there's not an expressly faith-based insurance company at a national level. I think your best option would be to find a faith-based independent agent locally. I'm up against a break. Stay right there. We'll talk off the air. We'll be right back.

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Announcer: One of the greatest concentrations of young people, and one of the most fertile missionary fields, is the community of students in public schools, and we have a way to reach them. It's Truth for Youth Bible Week with Revival Fires International. I'm so happy that my friend gave me this Truth for Youth Bible. Visit tfy.org anytime, or call 800-733-4737 between 8:30 a.m. and 4:00 p.m. to order or donate. It's Truth for Youth Bible Week with American Family Radio.

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Rob West: Thanks for joining us today on Faith & Finance here on American Family Radio. You just heard during that break, FaithFi is partnering with Preborn. You know it well. We partner with Preborn every year here at AFR, and specifically between FaithFi and Preborn, we've set a goal to fund a significant number of free ultrasounds—1,500 specifically—for moms in a crisis pregnancy considering an abortion, to be able to see their babies. Every $28 given is going to help us reach that goal of 1,500 free ultrasounds, and it goes through August 31st. So if you'd like to help us be a part of that, it's quick and easy. You can make your gift of $28 to cover one of those free ultrasounds, or perhaps more. Just head to faithfi.com/preborn. That's faithfi.com/preborn.

All right, we've got a few lines open: 800-525-7000. If you've got something happening in your financial life, we'd love to chat about it. Let's go to Ohio. Minnie, you've been waiting patiently there. How can I help?

Minnie: Hi. I have an S10 that is not in my name; it's in my mother's name. She bought it with a credit card with 0% financing for a year, so I paid it off in four months working at Campbell Soup. And she wound up getting cancer, and she fell. Before she knew that she had cancer, she fell off the porch, one of the steps, and she broke her back, so she couldn't get out of bed. She was in bed at night, and she kept saying, "I need to get that put in my name." I go, "I know, but I don't know how to do this because you have to be up there to change it."

So the appraiser came out to look at the property, and I forgot that the thing was in her name. I said, "No, it's my truck." So now I don't know what to do. I want to sell it. Somebody blew up the engine. They drove it without oil. At least the mechanics... somebody put the keys in it, and somebody got in it and blew it up. So now I can't drive it anymore, so I want to sell it. But I don't know what to do because I can't get it... I don't know how to put... How can I get it in my name again?

Rob West: Yeah. Yeah. So who legally owns the car? It's in... it's still in your mom's name?

Minnie: Still in her name, and she passed away.

Rob West: Yeah, yeah. So essentially, if there is a will, the executor or the personal representative would typically transfer the title according to the will. Was there a will in place?

Minnie: Yeah, I was the executor.

Rob West: Okay. Yeah. And so did you... have you already gone through or are you currently working through the estate process through the...

Minnie: We've already done it. We've already done it. I talked to probate, and they said if I want to put it in my name, I have to go through probate again and pay $1,000 to probate court. It's not worth it.

Rob West: Ah. Yes, yeah. Yeah, that's a challenge, because you've already completed that process, and I can understand as it was missed, it was never transferred.

You know, there's a couple of options here. I guess, you know, many states have a simplified process for transferring a vehicle after death, especially if probate has already been established, even though it was wrapped up. They may accept the probate paperwork, the death certificate, and the testamentary letters, the will, to issue a new title. Have you attempted to go down and work directly with the DMV on this?

Minnie: No, I just went to probate to find out what I could do to get it in my name, and I haven't talked to... They just want my... I have to have my title in my name, but I don't have it that way.

Rob West: Yeah, yeah. Well, I mean, if the estate has already been closed and the vehicle wasn't included, they're going to require it be reopened or a supplemental order entered before the title can be transferred.

You know, I would ask whether there's a less expensive option. But even before I do that, I would go down to the DMV or to the title office and just explain the situation, and show them all the paperwork. You can show them the probate paperwork, the death certificate, the will, and just say, "You know, can I use this information to establish title in my name given what I've got here?"

Unfortunately, if that is not an option, I think then we've got to look for a less expensive option for that supplemental order on the estate, because there's not going to be the ability to resolve the title and legally sign it over to another buyer until that ownership is properly transferred. And so we just need to find somebody who's willing to work with you on a more cost-effective basis.

And I think really your only two steps are: see if the title office or DMV will work off of all the documentation you have and help you get it done, or see if an attorney or the probate court directly would be willing to give you a route that would be a little bit more cost-effective than what they originally described.

Minnie: Right. Thank you.

Rob West: Okay. I'm sorry, Minnie. I know this is a lot and it's a hassle, but I'm confident you'll get to the end of it here at the end of the day. Thanks for your call. Let's go to Louisiana. Hi, Steve. Go ahead.

Steve: Hi. Hi, Rob. Thanks for taking my call.

Rob West: Sure.

Steve: My wife and I are both turning 62 this year, and I thought about maybe either one of us starting Social Security and then just reinvesting that money to grow while the other one continues to work. We have a business that we're working in, and I can move either pay myself or my wife income off of that. Just wanted to see if that makes sense.

Rob West: Yeah. You know, I don't love that option, just because it's not a great strategy. Because every year you delay claiming Social Security, your benefit increases by about 8% per year through the delayed retirement credits, and that increase is guaranteed by the government. And it's difficult to consistently earn a better risk-adjusted return by taking benefits early and investing them. Could you? Sure. But is it guaranteed? No, not at all.

And so your ability to just let that grow, especially when you don't need the money, and get that guaranteed increase—which by the way, that guaranteed increase, by getting that check up as high as you can, it means not only do you get a larger guaranteed monthly income for life, but future cost-of-living increases are going to be on that higher amount.

And so, you know, generally speaking, for somebody in your situation where you're saying, "Listen, we're covering our bills, everything's working well, and we really don't need this money," I kind of like the idea of you just leaving it there and maximizing that benefit down the road, so that when you do need it, your starting point is as high as possible. Does that make sense?

Steve: Oh, yes, that makes sense. I just never looked at it as far as the increase is going to be... You're going to be a more percentage on the increase, too. I didn't look at it that way.

Rob West: Yeah, yeah. I mean, you certainly could make the case, "Well, wait a minute. You know, look at what the market's been doing, and we could take this money and put it away, and we'd rather have control over it rather than leaving it with the government." And I get that, especially given recent rises in the stock market. But again, none of that's guaranteed, and we could hit a recession here. We're certainly overdue for one, even though I think the US economy looks pretty strong right now for a lot of reasons despite our challenges. But there are no guarantees.

And so I think you've just got to decide: would we rather just let that money grow automatically by leaving it there and delaying it, or would we rather assume the risk? You know, it's one thing if that increase was 5% a year; I think it's another thing with it being up around 8% a year, which just tips the scale, at least in my mind, toward not taking it early.

But hopefully that helps, Steve. I appreciate your call, and if I can help further along the way, don't hesitate to reach out. Lord bless you, my friend.

Well, making some great headway here. We've got some questions to tackle as soon as we come back. Antonio's wanting to know, with a portfolio of about a half a million dollars, is the advisor asking for too much? You know, are the fees too rich? And we'll dive into that around the corner. Also, what about term insurance? Is that cost-effective? Monty's got a policy he's evaluating, so we'll weigh in on that.

Plus, room for your questions as well. We've got one more segment. We'd love to get to as many as we can. So if you've got something happening in your financial life, call right now: 800-525-7000. That's 800-525-7000. It's Truth for Youth Bible Week here at American Family Radio. Order a Bible delivered free to put in the hands of one of your young people to hand off at school when you go to tfy.org. We'll be right back.

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Rob West: Thanks for joining us today on Faith & Finance here on American Family Radio. In our last segment here, we're going to get to as many calls as we can. That number to call to get in on the conversation: 800-525-7000. Any financial questions today: 800-525-7000. Let's go to Texas. Antonio, how can I help?

Antonio: Morning, Rob. Appreciate taking my call.

Rob West: Yes, sir.

Antonio: Hey, um, I am dealing with a company, a financial company called Primerica, and I have a $500,000 investment. And they wanted to charge 2% on that, which is $10,000. And I wanted to know, is that too rich for me?

Rob West: Yeah. Yeah, 2% is definitely on the high side. So that's an on—that's an ongoing annual advisory fee. Is that right, Antonio?

Antonio: Yes.

Rob West: Yeah. So a portfolio that size would be somewhere around 1%. So about half that. I mean, maybe 1.25%, perhaps 1.5%, especially if it includes some comprehensive planning alongside it. But, you know, anywhere close to 2% is definitely on the high side. You know, the key question is always: what services am I receiving for that $10,000? But even if they say, "We're offering comprehensive financial planning, and tax planning, and retirement planning in addition to ongoing investment management," I would say, you know, that's still a bit rich. And I'd be looking around if that was what they said.

Antonio: Okay, very good. One—one other question. Annuities: what is the difficulty of having an annuity? Because I remember Dan Celia, that's one thing he never recommended any of his callers to invest in an annuity. So what's the problem with annuities?

Rob West: Yeah, and I would share Dan's sentiment on that for most people. I think there are places for somebody who's just risk-averse, who's saying, "Listen, I don't want to bear the risk in the market." But I would say, you know, my preferred option is certainly not an annuity.

And you ask why. I mean, generally speaking, I would say they're higher fees. There's surrender charges, which means you have a limited access to your funds for several years at a minimum. They're complex and difficult to understand; there's a lot of fine print. You know, I would say even for a variable annuity, which is where, you know, they sell them based on the fact that you get a floor so you can't lose money, and then it's—at least with a variable indexed annuity—your money is pegged to a stock market index, but you only get a portion of the upside.

And really, the real win of really any time period you look at for stock performance is driven largely by those periods, often very brief periods, where the market was up dramatically. And so when you take all of those out because you're giving any upside beyond a certain point to the insurance company, you're really, you know, hurting your overall annual performance. And so that limited upside, even though you're getting the downside protection, I just think is something not worth giving up.

And then lastly, I would say your earnings are taxed as ordinary income, which, you know, is an added detractor from these. So I would say for all of those reasons, that's why these insurance products are not my favorite option. I'd keep your insurance purely to offset risk, like for your home, and your life if you've got a dependent that's counting on your income, or for your car. And let's do our investing outside of insurance products in, you know, properly diversified stock and bond portfolios.

Antonio: Very well then. Thank you so much, sir. I really appreciate it.

Rob West: All right, Antonio. Thank you for calling, and I appreciate your mention of the late Dan Celia, who was... I didn't have the privilege of knowing Dan, but am so thankful for his ministry. I've talked to countless AFR listeners who were just so blessed and helped by Dan's wisdom and counsel over many years, and we certainly miss Dan here. Let's go to Texas. Money, how can I help?

Monty: Good morning. Good morning, Rob. Thank you for taking my call. My question is, I've seen in this online YouTube insurance companies offering term. I am 78 years old, of fair health, and think like half a million for about $50 a month. Are these legitimate, do you think?

Rob West: Yeah. So you've got—you said you're 78 years old and you are in good health, is that right?

Monty: Yes.

Rob West: Okay. Yeah, so half a million dollars, $600 a year at 78. You know, I would say, you know, that's probably—I right offhand, that sounds like a pretty good price. I would want to know a little bit more on who the insurance company is, and, you know, what their strength is. Have you looked at that? Do you have a sense of that?

Monty: No, I don't. I just saw it in passing, so I wonder if it's just another clickbait.

Rob West: Yeah. Yeah. Well, I would want to... Right. Go ahead. I'm sorry, I didn't mean to cut you off.

Monty: They might be trying to get personal information like my birthday, my telephone number, my email address, and so I wonder if that's part of a clickbait.

Rob West: It probably is. Yeah, it probably is. You know, that's—that sounds extremely unlikely. You know, most insurers won't issue large term policies at that age, or the premiums would generally be substantially higher because of the increased mortality risk. Premiums rise sharply for applicants in their 70s.

And so, you know, I would be real suspect there. You know, the policy quote engines that I would probably look to would be either Policygenius or SelectQuote. But if this is a brand new policy and a half a million dollars just given what you've described here, I would be very suspect. I think you're probably right, it is clickbait.

My question to you though, Money, would be: do you need the insurance? You know, what is the purpose of this life insurance? Who would it be paid to? Who is the beneficiary? And would they have a legitimate hardship if you were to pass away? Would there be a loss of income or something that you're trying to cover?

Monty: No, they don't have a difficult life if I pass away if I didn't have this. It's just that it's part of leaving more. And also, another red flag was they offer that no—no health check. No, there's no—what do you call it?—they will not check my health.

Rob West: Yeah. No, yeah, that—that's not going to be possible. I mean, especially if they were to do no medical underwriting, I mean it would even be more high, you know, than it is for a traditional, healthy, medically underwritten 78-year-old. That's already going to be a high policy, it would be astronomical without any kind of medical underwriting. So, yeah, there's a lot of reasons for you to move on from whatever it is you're reading.

And, but again, I would come back to: what's the purpose of it? Because, you know, generally, especially when you're in your upper 70s, you'd be much better off taking the same amount, if you could even get a half-a-million-dollar term policy for let's say 10 years, I'd much prefer you take, you know, the annual amount of that premium and just stick it in a high-yield savings account or invest it, and have something to show for it, especially because there's nobody that's counting on you for income. So there's not any kind of hardship that's created at your passing. Whatever assets you have are still available for your loved ones.

And, you know, at least if you were to take the same amount as you were paying on the premium and put it in savings, you could get access to it if you need it, and you're not just kind of throwing it away. So I would encourage you to first of all move on from whatever it is you're looking at, and then secondly, I would just challenge the idea that life insurance at this stage of your life is a good investment at all. And in fact, I would rather you just redirect that money to more productive purposes.

Monty: Okay. Second—second question, if I may, Rob.

Rob West: Sure.

Monty: Uh, there's a house in the neighborhood, the owner, single, died about two years ago, and it looks like it's abandoned. And the city twice or more than twice had to have the grounds—the yard—taken care of. So eventually I think this may go to an auction. Where can I—how and where and how can I find where it may be put up for bidding?

Rob West: Yeah, it's a good question. You really need to find out who owns the property. So I'd probably check the county property records to see whether the title is still in the deceased owner's name or it's been transferred. You can also search the probate records; those are publicly available to see if an estate was opened and who the executor or the heirs are. That's, you know, one of the things that people who try to avoid probate are avoiding is that publicly available information. But if this went through the probate courts, then you can, you know, get that information publicly.

If it's still open, the estate—which may be possible, even though it's been two years—you could contact the executor or the attorney handling the estate and express interest in buying it. If no probate was ever opened, the heirs may still own the property even if the title hasn't been updated. And again, I think a real estate attorney or title company could help identify and contact them.

If the property taxes aren't being paid, the home would eventually be sold at a tax sale or foreclosed upon. So I would just monitor the county tax sales. But there's no guarantee it will end up there. The fact that the city's maintaining the yard usually means the local government is enforcing code ordinances; it doesn't mean that the city owns the property and can sell it.

So I think at the very least you've got a little due diligence to do to figure out who the current owner is, and can you get in touch with them to see if you could make an offer. Money, I appreciate your call today, sir. God bless you.

Well, folks, that's going to do it for us. Big thanks to my team today. So thankful for Patty, and Taylor, and Devon, everybody here at FaithFi that makes this possible. Don't forget, it's Truth for Youth Bible Week! That's right, here on American Family Radio, we're trying to get 65,000 Bibles in the hands of teens so they can pass them along to a classmate who doesn't know Jesus. And we're doing that in partnership, as we do each year, with Revival Fires International. If you'd like to have a Bible mailed to your home for one of your young people, go to tfy.org or call right now: 800-733-4737. 800-733-4737. And then come back and join us tomorrow. We'll talk to you then. Bye-bye.

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