Rob West: What if debt isn't just a financial issue, but a discipleship one? Hi, I'm Rob West. We often view borrowing through a financial lens: rates, payments, and timelines. But scripture invites us to see the spiritual implications, too. Debt can shape our freedom, our generosity, and our ability to respond when God calls. Today we'll explore a more biblical perspective on borrowing and why it matters. And then we'll take your phone calls at 800-525-7000. That's 800-525-7000. This is Faith and Finance on American Family Radio, biblical wisdom for your financial decisions.
Borrowing can feel normal, sometimes even necessary. Credit cards, student loans, mortgages, and business financing are all a part of modern life. And scripture doesn't label debt itself a sin, but it consistently warns us of the weight it carries. Proverbs 22:7 reminds us, the rich rules over the poor and the borrower is the slave of the lender. In the ancient world, that wasn't just a metaphor. It was often literal. A person who couldn't repay a debt could be forced into servitude until it was settled. While that's certainly not the case today, the spiritual principle still holds. Debt creates obligations that can limit our freedom, shape our decisions, and sometimes hinder our ability to live, give, and respond when God calls.
The reality is, debt mortgages the future. It not only shapes our budgets, but also limits our availability to participate in the kingdom. And that's the deeper issue. Debt becomes a discipleship concern when it shapes how available we are to follow the Lord. Imagine wanting to step into a ministry opportunity, help someone in need, or give generously, but feeling held back because your future income is already spoken for. Paul writes in Romans 13:8, let no debt remain outstanding, except the continuing debt to love one another. While he's speaking primarily of relational debts, the principle still carries weight. Don't let financial obligations eclipse the greater call to love and give.
Of course, this doesn't mean all borrowing is unwise. A modest mortgage or a carefully planned business loan may be appropriate. But scripture invites us to ask a better question, not simply, am I allowed to do this, but will this enable me to love more freely, or will it diminish my ability to do so? As Paul reminds us in 1 Corinthians 10:23, all things are lawful, but not all things are helpful. Not all things build up.
Sometimes the debt we carry isn't driven by necessity, but by impatience, comparison, or cultural pressure. When we're constantly mortgaging the future, we may miss God's invitation to partner with him today. So, what do we do if we're already carrying debt? Well, first, don't despair. The gospel always begins with grace. On the cross, Jesus declared, it is finished. The word he used, telestai, was often written on receipts to show a debt had been paid in full. We owed a debt we could never repay, and Christ paid it completely. That truth shapes how we think about financial obligations. We pursue repayment, not out of guilt, but out of gratitude and a desire to walk in freedom.
From there, the question isn't, how fast can I eliminate every loan? It becomes, what's my next faithful step? That might begin with an honest look at your obligations, not just the numbers, but how they're affecting your ability to live out God's call in your life. It could mean building a budget, creating a repayment plan, and realigning your finances with his priorities. Psalm 37:21 reminds us, the wicked borrows but does not pay back, but the righteous is generous and gives.
Charles Spurgeon once warned that debt is a small beginning, but a giant's ending. It starts as a convenience, but ends as a chain that holds us back from where God wants us to go. That's the heart of this conversation. Freedom from borrowing isn't about legalism. It's about availability. It's about being ready like Isaiah to say, here I am, send me. And that's the invitation today. Take one step, seek wisdom, build margin, and walk in grace. Because when God calls, the goal isn't to say maybe someday, it's to say yes, Lord, I'm ready.
This is something I explore in my devotional, Our Ultimate Treasure: A 21-Day Journey to Faithful Stewardship. It's available now at faithful.com/shop, where you can pick up your copy. And if you'd like to go through it with your church or small group, we offer discounted pricing for bulk orders. Again, that's faithful.com/shop.
All right, your calls are next at 800-525-7000. That's 800-525-7000. I'm Rob West and this is Faith and Finance on American Family Radio, biblical wisdom for your financial journey. Stay with us, we're just getting started.
SEGMENT 2
Rob West: Grateful to have you with us today on Faith and Finance on American Family Radio. I'm Rob West. Well, we'll be taking your calls in just a moment, so this is your opportunity. Is there that burning question in your life, financially speaking, something you've been wrestling with: Do I go this way or that way? Maybe they're both good decisions. You're just wondering, what's the priority order? You know, often I'll hear from folks saying, should I pay down debt or should I save? Well, those are both great options. Should I pay down debt or should I give? Again, we want to honor our obligations. We should absolutely, as an overflow of the grace extended to us, we should live a generous life. Both good options, which is the priority? Well, often it's a matter of discernment and talking to the Lord, and then looking at the practical implications of each, living within your means as a good steward, but also following the leading of the Lord. There's a healthy tension there. So for you, maybe it's debt repayment, maybe it's savings, maybe it's giving, maybe it's investing or preparing the next steward, when to take social security. Whatever you're thinking about today, we'd love for you to call. The number: 800-525-7000. That's 800-525-7000. The team is standing by. We're ready for those calls right now. 800-525-7000. We'll begin that in just a moment.
The Social Security Administration has announced a 3.6% cost of living adjustment for 2027. That's the largest increase since 2023. That means the average retiree will receive about $75 more per month or $900 annually. Nearly 72 million Social Security beneficiaries will see their increase beginning in January, while SSI recipients will receive their adjustments starting December 31st. The increase comes as inflation continues to strain household budgets. You're feeling it everywhere, I'm sure like I am. It's particularly true for older Americans who depend heavily on Social Security. So, if you receive Social Security benefits, review your 2027 benefit notice, account for any changes in Medicare premiums, and then adjust your budget accordingly. Hopefully, this will be a welcome addition of a few extra dollars a month that will find its way into your budget, hopefully helping you close a gap maybe that already exists. But 3.6% cost of living adjustment for 2027.
Again, those phone lines are open. We'll begin taking your questions here in just a moment: 800-525-7000, any financial question today. That's 800-525-7000. You know, we started today by talking about freedom from borrowing. And I think the key verse here is Proverbs 22:7: "The rich rules over the poor, and the borrower is the slave of the lender." And we understand that as a starting point, simply to know that when we get into a debt relationship, the relationship changes, which is why we're so adamant, and I believe God's word is very clear, that we shouldn't co-sign. Because the Federal Trade Commission tells us half the time or more, the person co-signing will have to step in and cover that obligation, because and perhaps it's not from anything that was intentional, but the often result of that situation pretty, you know, basically because they were unable to borrow on their own without you. That's a pretty good indicator that there's some things going on there that led to them needing you in the first place. Often, those factors are what ultimately prevents them from making good on the obligation. But it's this change in relationship that's the big idea. This master-slave relationship, because especially when it's a family member or a friend, which is often what we're talking about when we have someone who's asking for a co-sign. You know, it's a situation where if even without their, you know, desire to do so, when they default on it or are unable to pay, it creates that relational damage, right? And so we don't want that. Which means we find other ways to bless them. Maybe you can come in and and, you know, write a check directly to something that makes sense to help bless them. But, you know, it's not co-signing. I would rather you, much rather you make a gift without any strings attached than you coming in, providing your good name and credibility, and then, you know, despite their best efforts, they're unable to make good on it. Now you're having to decide: Do I let it default, which is going to hurt my credit? Do I step in? I wasn't planning on it. Now we've got relational carnage. We don't want to have that.
So that's a key idea when we think about borrowing. Now, the other thing to consider when it comes to borrowing is some of these timeless rules that we talk about here on this program regularly, that I think are really just so essential for you to understand. When we think about borrowing, which by the way, again, is not a sin, we just need to heed the warnings, we need to understand the change in relationship, but those rules are, first of all, the most key idea is we try not to borrow for anything that's depreciating, right? We only borrow for appreciating assets. The rule goes like this: you know, I want to make sure the economic return is greater than the economic cost. You might say, well, where does that come in? Well, think about it. You're buying a house, you're paying what used to be 3-4%, now it's 7% plus. But the idea would be that over time, that home would be appreciating. It allows you to make a major purchase that you wouldn't be able to otherwise afford, and, you know, the economic return over the long haul should keep up with or exceed the cost of the interest. That's a good borrowing decision, so long as it fits in your budget, and that's where people get into trouble there with one of the three budget busters being housing. So, make sure the economic return is greater than the economic cost.
Number two: spousal unity. And this goes without saying: we don't borrow unless we're both on the same page. We just, that's a showstopper, automatically. So, make sure there's not any kind of borrowing behind the scenes. And unfortunately, financial infidelity is far more prevalent than you might imagine. Maybe it's something that's been present in your life—I pray not. But let's just make sure we're above board. We don't have any secret credit cards. We're not making borrowing decisions without our spouse's full knowledge and buy-in. And if one of you is not on board, that's it. We're done.
We also don't want to rob God an opportunity to provide. Now, we can't take an opportunity away from God. He's going to do what He wills. I will say though, so often when people get into a tight spot financially, they'll just kind of rush in with the credit card to try to cover that obligation rather than just saying, "Lord, I'm going to trust you. What do I need to do to cut back and take care of this myself? Lord, will you provide even unexpectedly? That may come with a knock at the door, it may come with somebody at church offering to help with something. It may come with an unexpected bonus or a refund of some kind." Let's trust the Lord, invite Him into the situation, and not rush to borrow just because it's available. So, those are some of the rules that we want to think about as we're considering how to be God-honoring in our money management and our borrowing and lending.
I would say the other piece is just really be careful when it comes to kids, especially adult kids, in terms of, you know, so often we want to bless our kids, and therefore we'll just put our name on a loan. It could be a student loan, it could be a first car. Again, unless you're ready, willing, and able to step in and cover that obligation, I would say let's find another way. Because what we don't want is that relational strain between parents and children as a result of borrowing decisions, despite their best efforts and your desire to bless them, unless we have clear expectations. I would say even written down, which feels weird because you, you know, you've got a family member and you're saying, "I don't want to document this, this isn't a loan." Well, that's where we get into trouble, because we have unmet expectations. Somebody remembers something differently than somebody else, especially years down the road. So, just be on your guard there. I hope this is practical and helpful. Here's the idea: we want to be faithful stewards. We can borrow and still be faithful. We just need to give some careful consideration before we do.
All right, we're going to take a quick break. When we come back, we're going to dive into some questions. Linda, Ray, coming your way. We'll be right back on Faith and Finance.
SEGMENT 3
Rob West: Well, God owns it all. You and I, we're stewards. We're managers for the King of Kings. Money, yeah, it's a tool. It's a good gift from a good God to be used for God's glory. That means we provide with it. We enjoy it, creating memories and experiences for our family. We love our neighbor with it by giving and investing in a way that promotes human flourishing. We can advance the Gospel, we can protect the vulnerable. That's the power of money when it doesn't become an idol in our lives. I think it was John Calvin that said the human heart is a perpetual idol factory. And most often, that idol—at least in the most prosperous nation in the history of the world where you and I find ourselves—is going to be money. We don't want to let that happen. It can't provide the security or significance we will look to it for. So instead, we see it as a tool. Jesus sits on the throne of our life, and then it becomes a really powerful force for good.
We know you have practical questions as you give, save, and spend. We want to help you make those through the lens of biblical wisdom. Everything we do here at AFR is about God's word and a biblical worldview. And for this hour of each day, it's your money management. It's your financial life, which by the way, is a mirror. It reflects—your spending reflects—what's most important to you. And so we want to line up your spending and your money management and your investments and your giving with your values as a Christ-follower. We want to do that as you call with your questions today: 800-525-7000. The lines are open. We're ready for you: 800-525-7000. Let's take some phone calls here. Linda has been waiting patiently in Mississippi. Go right ahead.
Linda: Good morning. I just have a praise report and then a question.
Rob West: Hi, Linda. Great! We'll take both of those.
Linda: Last year—I called, I don't think it's been quite a year ago—and I was in a relationship. I was engaged, and we were thinking about selling one house or keeping both houses. And I had questions about all that, and somebody called from your organization and gave me a lot of great advice. But it all worked out. I am single and happy and staying where I'm at. And not only that, I started drawing on my ex-spouse's, and God has increased my income threefold.
Rob West: Wow! Well, Linda, thank you for that praise report. I'm delighted to hear that that's the way it turned out, and I'm so thankful that our team at FaithFi could have been helpful to you. So thanks for sharing.
Linda: Very much so. The question I have today is—well, I wanted to give other people encouragement that, you know, God sees things we don't know, and He's got a plan, and we just have to trust Him and His timing and His how. But my question now is, I will soon be 67, my mother will be 87. We have an appointment tomorrow with an insurance broker to find out—you know, we have Advantage plans, and they no longer offer that. So we don't really know what to do. And so do you have a resource for us that we can get some information about how to make the best choice?
Rob West: Yes. Well, thanks for that question. It's a good one, and it's an important question. In terms of thinking about where you need to go from here, having the right Medicare supplemental coverage can make a tremendous difference, both in terms of financially and in peace of mind. In terms of her current coverage, does she have original Medicare with a Medigap or a Medicare Advantage of some kind? What does she have right now?
Linda: Medicare Advantage. That's what we both have.
Rob West: Okay, great. And what you want to do is look beyond the monthly premiums to the deductibles, the copays, the out-of-pocket expenses. You want to check your prescriptions, make sure her medications are covered affordably under her Part D. And then you want to be careful about switching because switching can require medical underwriting, depending on your state and circumstances. Do you have somebody like an independent broker, somebody who represents multiple companies that you could access to help you look around?
Linda: Yes, that's who we're going to tomorrow. But you've already—what you've already said will help a lot. And we had Advantage, and they said that they no longer carry that, and I was thinking that that was not a broker choice, but a something that the insurance industry no longer offers as a whole. Am I wrong in that?
Rob West: Well, in terms of the coverage that you have right now, it could be that your plan is being discontinued. And so you really want to—you know, I think having this independent broker who can help you navigate what options are available today and what best meets her needs. So in addition to what I had already shared about checking the total costs, looking at her medications, making sure they're covered, and then getting that independent broker involved, the other thing is you could do a little bit of research before you go in terms of where to go. I would say medicare.gov has a plan finder, and so you can compare Medicare Advantage and Part D prescription plans. You can review the premiums and the drug coverage and explore your options there. So that's medicare.gov, the plan finder. I think that would be really helpful.
And then there's the State Health Insurance Assistance Program that could be helpful as well, that you would find at shiphelp.org—SHIP for State Health Insurance Assistance Program—so shiphelp.org. And they provide Medicare counseling and could help you compare Medicare Advantage versus original Medicare and a Medigap supplement. And so I think if you looked at both of those prior to meeting with the broker tomorrow, you know, that could be a great option for you. You know, you could look at guaranteed issue Medigap coverage, but that's generally going to be, you know, for somebody who has pre-existing conditions. It's also going to be a bit more expensive.
In terms of your application window, you generally have, you know, it begins 60 days before your Advantage coverage ends and continues for 63 days after. So you just need to, you know, be judicious about the time that you, you know, take advantage of this special opportunity to move into another supplemental plan without the medical underwriting. And so I would start with shiphelp.org and then meet with that broker tomorrow. Thanks for your call.
SEGMENT 4
Rob West: Thanks for joining us today on Faith and Finance here on American Family Radio. I'm Rob West. We've got some lines open, we're taking your calls and questions. We'll get to as many as we can between now and the end of the program. So, anything on your mind today, financially, we'd love to help you think through it and make a decision that aligns with your values as a Christ follower. Just call right now: 800-525-7000. That's 800-525-7000. We've got some lines open, the team is standing by, we would love to hear from you today. Let's go to Nebraska. Hi, Lori, how can I help you?
Lori: my call.
Rob West: Hey, Lori?
Lori: Oh, there you are, go right ahead.
Lori: Um, I'm calling because, well, basically, I'm looking within the next year or two to purchase a car. I'm presently 64, I'm on disability and Medicaid. I will be 65 in April and I'll have to go on Medicare. And I'm—I know, I'm aware of all the guidelines for Social Security and—and Medicaid and all that. Um, however, my car is 20 years old, it's doing me real good, it's a Toyota, but I know that I'll probably have to be purchasing another one, and I have some money in an IRA and a Roth IRA. I—I would like to be able to take that money out of there to purchase the car or at least put a good down payment so that I don't have car payments. But I know they're going to look at it as income, or at least that's what I've been told. Is there any way around that, or am I better off just taking out a loan and making payments? I don't want to be penalized and lose my—any of my benefits, or, you know, anything like that.
Rob West: Sure. Yeah, and it is SSI, not SSDI, correct? Not Social Security Disability?
Lori: I think it's disability. I don't know, I had to apply for an early retirement at 62, and they told me to apply for disability, and I never thought I'd get it, but they gave it to me right away. So it's actually $500 more than an early retirement.
Rob West: Okay. All right. Yeah.
Lori: Okay.
Rob West: Well, let's just confirm that. But if that's the case, that's good news, because if you receive SSDI, social security disability insurance, you can generally withdraw money from your traditional IRA or Roth without reducing those benefits. See, with SSDI, IRA and Roth withdrawals don't count as earned income and shouldn't affect your payments at all. Um, you know, the the traditional IRA withdrawals are going to be subject to income tax, the the Roth withdrawals should be, uh, tax-free, uh, and then, you know, you're over 59.5, so you're not going to have that penalty. Um, but in terms of, you know, SSDI disability insurance, um, you know, you shouldn't have any issue with losing a disability check because you withdraw money from a retirement account. Uh, there could be an issue if it was SSI, um, but you know, which is supplemental security income, where it would count as unearned income, and then it could reduce or eliminate your SSI payment for the month. But not so with SSDI.
Lori: I know, I'm pretty sure it's SSDI. Okay, but I know it would affect Medicaid, right? But I only have—I just have a few more months before I'm off of that, and I think the car will last until then.
Rob West: Yeah, so if you receive SSDI, then you already qualify for Medicare after 24 months of disability benefits, um, and so, you know, you'll—you'll obviously switch over there when you turn 65, uh, I think you said in April, uh, then your, you know, normal enrollment period begins in January, and then you would review your enrollment status and potential premiums.
Lori: Yeah. Okay. All right. So that's good to know I won't be penalized by taking that money out because that would be better than having to make car payments.
Rob West: That's right.
Lori: Exactly right.
Rob West: Hey, thanks for your call, Lori. If we can help further, don't hesitate to reach out. Uh, let's see, let's go to Mississippi. Catherine, how can we help?
Catherine: Yes, Rob. Um, I first of all, I just want to thank you for your ministry and your program. It's been valuable. And, uh, I've called you a couple of times over the last several years, and in fact, you sent me a book of the "Splitting Heirs," which I would highly recommend to everyone. I think it's a—a wonderful way to, uh, look at the future and your—your your money, and, uh, what to do, what to do about it.
Rob West: Well, that's great, Catherine. Thank you for mentioning that. I agree, "Splitting Heirs" by Ron Blue is—is one of my favorites if you're thinking about really the questions to ask surrounding wealth transfer plan. So that's a great call out. How can I help you today?
Catherine: Yes. Well, um, my husband and I have been talking about, um, possibly redoing a will. We have a simple will. We have two adult children who are not married, um, and so we have no heirs to speak of, at least not now. Um, and, uh, and so we have a simple will. Our children are harmonious. There's no—no issues, no, um, in fact, when we made our simple will, um, our attorney said, uh, your—your—your children, due to the fact that you might have high inheritances from your parents, your children should get prenups if they ever do marry, and then if they do have children, that way, uh, they're—the money—the money would be guaranteed, should there be a problem of going to your grandchildren or great-grandchildren. Um, but that's just a little side note, because we weren't—we weren't, uh, we were surprised by that, and we weren't expecting that. But it was—it was good legal advice at the time. Uh, and so now we're trying to, to, to decide when we do see the attorney, um, we come into significant inheritances from our, um, from our parents who are now deceased, and we have several properties, and we don't know if we should, um, go the way of a trust? Our—our feeling is that things would equally be divided between our children should we pass, and it would be harmonious. However, if they pass without heirs, um, marriages or heirs, um, or both, then we would want that money to go back to our church, whatever's left over from—from that. And we don't know what to do. We don't know—we're not really sure even what we should ask of the attorney, so we—I thought I'd call you.
Rob West: Yeah, I appreciate that. Uh, if you don't mind me asking, what was the total estate that came your way at their passing?
Catherine: Well, it's in—it's in several million, and, uh, that puts us also with our—our money and our properties, um, into, um, you know, over 10 million. Um, and that sounds—sounds utterly, um, it's just—it's it's it's it just—it's overwhelming almost. We can't even imagine the amount of money, to be honest. Uh, I mean, we never dreamed of it, and we and we can't even imagine it. So now, um, we—we feel like we, um, probably need to do something on paper that protects everybody and also, um, a- accounts for that. And we do give the—uh, um, the maximum amount every year to our children for what we can give in gifting. So we're trying—we were thinking that if we continue to try to reduce the estate, maybe we won't have to do a trust. But if we want all the, if we pass and they pass and there's money left, we'll want that money to return to our church. So, um, we're—we're trying to figure out, do we need a trust or not need a trust in that way?
Rob West: Yeah. Yeah. Well, at this level of wealth—and I agree, it is significant, and obviously the Lord saw fit to entrust it to you and your husband, Catherine, so I have every confidence that, uh, you all will be good stewards of that and already are—but I think a revocable living trust combined with an estate plan is worth serious consideration rather than relying on a simple will. Um, you know, essentially it would help to transfer the properties outside of probate, provide for management if either of you become incapacitated, it can develop the gifting strategy to give money to your children during their lifetime, which you're already doing, but to also perhaps get them involved in some giving right now, which is a great way to model just wise stewardship. Um, we just came out with a new resource, it's our second field guide called, "How do I prepare the next steward?" I'm going to send you a copy and hang on the line, we'll talk a bit more about it after this break.
SEGMENT 5
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 Catherine. Catherine's wondering, she and her husband, how to be wise managers of what God has entrusted to them through their own assets and a significant inheritance. They have an estate worth more than 10 million including properties and and other assets. They want to leave it to their kids who are both unmarried and want to involve their church as well in in their giving. They're starting to give some of it to the kids up to the limits now, um, so they can try to reduce their estate. But she's just wondering, how should we think about the estate planning? Should we involve a revocable trust? And I do think because of the size and complexity here, at a minimum, I would encourage a revocable trust. I would also have a Certified Kingdom Advisor, Catherine, if you don't already have an advisor, who can walk alongside you. I think it's also important to just think about what does it look like to pass wisdom before wealth? And our field guide "How Do I Prepare the Next Steward" literally just came out. We just got them into, uh, inventory this week from the printer, the very first issues. And I'm going to send you one. You're going to be one of the first people to receive it, Catherine. But I think you and your husband can work through it, and it's going to help you think about how do we pass faith and- and virtues, uh, and character before we pass financial wealth? And, you know, your kids are probably doing great, and that's awesome. But what can you do to be intentional to prepare your children, um, to manage what we you're going to leave them and be God-honoring with their wealth? And, you know, I mean we're going to look at things like, uh, you know, how can you consider giving while you're still alive? Uh, you know, giving gradually or giving at death, and, you know, with substantial assets, there's going to be some opportunities to get them involved in that now. What does it look like to involve your kids in some financial decisions and perhaps even some of the property management responsibilities so they're ready for that? Defining the purpose of the inheritance, you know, what, uh, what you hope the money will accomplish and what does it look like to communicate that to your kids, um, in terms of them being able to take that and use it in a in a God-honoring way, and then getting them to engage early with some advisors and maybe even being in some of those conversations? And that advisor can help you think through, um, you know, how to communicate all of this to the kids, you know, to the extent you haven't already done that. So, uh, I think, yes, the answer is, I think a trust makes sense, but hopefully this will give you some other ideas to begin to consider what it looks like now to prepare them for what's coming down the road.
Catherine: That sounds excellent, Ed. And thank you so much. It sounds like a wonderful book. You said a revocable living trust plus something? Did you say plus a plus a will or?
Rob West: Well, you- yeah, you definitely need a will and as a catch-all, kind of a what's called a pour-over will, so anything not in the trust would be caught by the will. You're going to need the other basics like a durable healthcare, uh, surrogate, durable power of attorney for financial and healthcare-related decisions if- if, you know, your husband were to pre-decease you or vice versa or either of you are incapacitated. Um, you know, so those are at a minimum, a living trust for end-of-life decisions. And then just because of the size of the estate, you know, right now, um, you know, there aren't any estate taxes until you get quite a bit higher than what you have, but that could change, especially with a different administration. We could see an estate of your size in excess of 10 million absolutely having significant estate taxes, and we just want to make sure that we're doing the planning, which is where an estate planning attorney would come in, to minimize taxes, even if that means accelerating your giving while you're alive. And and you may want to do that anyway just so you can get more of this into God's kingdom. Because if, you know, many people in your situation will say, well, my kids don't need this much money and rather than it just sitting there, what if we were to start, you know, doing some giving right now to the causes that are aligned with our passions and the heart of God and doing incredible work in Jesus' name? Let's start doing some of that now and and get the the benefit of being involved in that. I mean you- you mentioned reading Ron Blue's book and you probably remember the line in there, "Do your giving while you're living so you know where it's going." And, uh, I think that's not a bad idea for somebody in your spot.
Catherine: Yes. Yes, those are all excellent. I hope everybody listening feels, uh, the same way, and I'm sure they do. Uh, and I really like that you said, um, "wisdom before wealth" is- is key. And- and we hadn't considered about having a certified Kingdom advisor in addition to the attorney. So I think that's a great idea that somebody might be able to help us walk through this without anxiousness or fear and to really start to make a plan.
Rob West: Yeah. Catherine, I'd be happy to hand you off to a- an advisor who would be uniquely skilled with a situation like yours if you'd like a recommendation, and my team can get your information, and we could connect after the show and I could point you to someone who could be, uh, really, I think, a blessing to walk alongside you.
Catherine: That would be great. I would appreciate that very much. I'm sure my husband would.
Rob West: Well, let's do that. You stay on the line, our team is going to get your information, we're going to put "How Do I Prepare the Next Steward" in the mail to you, and then, um, uh, I'll get in touch with you and we'll- we'll talk about where you go from here. But I appreciate your call today, your kind remarks about the program, and look forward to connecting real soon.
Catherine: Wonderful, uh, thank you, Rob. It's so wonderful, and- as again, it's a- your show is just, um, such a Godsend to, uh, not only us, but I know there must be so many people out there. I listen to the show regularly, and it's, uh, it's a real blessing and inspiration with a lot of, uh, good- good sound advice and a lot of hope for the future.
Rob West: Well, thank you very much. That means a lot. Lord bless you. Hang on the line, our team will get your information, and Catherine, we'll talk real soon. Let's go to North Carolina. Hi, Joy, thanks for your patience. Go ahead.
Joy: Hey, Rob. Um, have a question concerning a financial manager that we've had for about at least 10 years, maybe a little longer. Um, I am not been real satisfied, um, you know, with him of late. He went through a bad divorce, and we really saw a turn, uh, in him, and he says he's a Christian and I'm not debating that. But I- I appreciate having a Christian manager, but, um, I just don't know whether it's time to look elsewhere. My mother, who's almost 90, has just, uh, gone with a major, uh, well-known company, and my brother, he's a pastor, has, uh, has this company as a part of their church, uh, a ministry, and he is only 15 months older than I, and he's making a lot more money off of his assets than we are. And I- I just don't know if we should look into changing or what.
Rob West: Yeah. Well, I- I love the direction you're thinking here, and, you know, there's nothing wrong with considering whether or not there's a better fit out there, because this is an important role, uh, you know, for somebody to walk alongside you with your investments, with your financial planning. And I also think it's critical, you know, more and more Christians are saying that the worldview and training of my advisor matters. And I want an advisor who, yes, is incredibly skilled and competent, and can ask the right questions, and has the technical proficiency, but also understands their role in bringing wisdom, wisdom from above, from God's word, alongside every financial decision, including the role of money in our lives and, you know, how it can become an idol and, you know, what it looks like to live content, and what it looks like to give generously, and how much is enough for the future, and how do I think about my investments in a way that aligns with my values? Do I want to be invested in companies that are in industries that I don't even agree with? Maybe you have some of those sitting in your portfolio right now. And so that's where I think a certified kingdom advisor could really come alongside you and help with all of that, bring the best technical expertise, but with that godly wisdom as well. So I would head, Joy, to findaCPA.com, findaCPA.com—that stands for Certified Kingdom Advisor—probably interview two or three CKAs there in North Carolina, find one that's the good fit. But I totally agree about the importance of that and making a change if you found someone like that, I think would be, you know, a really good idea. Um, are you comfortable, you know, navigating the web in that way, or would you rather our team connect you directly?
Joy: Well, I had another part to that question. What is fair and logical to a finance manager to, you know, what should I expect?
Rob West: Yeah. Typically, if they're providing what's called discretionary money management, where they're taking responsibility after doing all the discovery and the planning with you and understanding your risk tolerance and goals, if they're the one managing the money, and often this includes the financial planning, it would typically be somewhere around 1 and 1/4 to 1 and 1/2%, could be as low as 1%, depending on how much, uh, you have in the way of assets. But that would be based on the assets under management, the annual charge between 1 and 1 and 1/2%. Unfortunately, I'm out of time, Joy. Stay on the line, our team will help you, and we'll be back tomorrow with more Faith and Finance. Join us then. Bye-bye.
Rob West: What if debt isn't just a financial issue, but a discipleship one? Hi, I'm Rob West. We often view borrowing through a financial lens: rates, payments, and timelines. But scripture invites us to see the spiritual implications, too. Debt can shape our freedom, our generosity, and our ability to respond when God calls. Today we'll explore a more biblical perspective on borrowing and why it matters. And then we'll take your phone calls at 800-525-7000. That's 800-525-7000. This is Faith and Finance on American Family Radio, biblical wisdom for your financial decisions.
Borrowing can feel normal, sometimes even necessary. Credit cards, student loans, mortgages, and business financing are all a part of modern life. And scripture doesn't label debt itself a sin, but it consistently warns us of the weight it carries. Proverbs 22:7 reminds us, the rich rules over the poor and the borrower is the slave of the lender. In the ancient world, that wasn't just a metaphor. It was often literal. A person who couldn't repay a debt could be forced into servitude until it was settled. While that's certainly not the case today, the spiritual principle still holds. Debt creates obligations that can limit our freedom, shape our decisions, and sometimes hinder our ability to live, give, and respond when God calls.
The reality is, debt mortgages the future. It not only shapes our budgets, but also limits our availability to participate in the kingdom. And that's the deeper issue. Debt becomes a discipleship concern when it shapes how available we are to follow the Lord. Imagine wanting to step into a ministry opportunity, help someone in need, or give generously, but feeling held back because your future income is already spoken for. Paul writes in Romans 13:8, let no debt remain outstanding, except the continuing debt to love one another. While he's speaking primarily of relational debts, the principle still carries weight. Don't let financial obligations eclipse the greater call to love and give.
Of course, this doesn't mean all borrowing is unwise. A modest mortgage or a carefully planned business loan may be appropriate. But scripture invites us to ask a better question, not simply, am I allowed to do this, but will this enable me to love more freely, or will it diminish my ability to do so? As Paul reminds us in 1 Corinthians 10:23, all things are lawful, but not all things are helpful. Not all things build up.
Sometimes the debt we carry isn't driven by necessity, but by impatience, comparison, or cultural pressure. When we're constantly mortgaging the future, we may miss God's invitation to partner with him today. So, what do we do if we're already carrying debt? Well, first, don't despair. The gospel always begins with grace. On the cross, Jesus declared, it is finished. The word he used, telestai, was often written on receipts to show a debt had been paid in full. We owed a debt we could never repay, and Christ paid it completely. That truth shapes how we think about financial obligations. We pursue repayment, not out of guilt, but out of gratitude and a desire to walk in freedom.
From there, the question isn't, how fast can I eliminate every loan? It becomes, what's my next faithful step? That might begin with an honest look at your obligations, not just the numbers, but how they're affecting your ability to live out God's call in your life. It could mean building a budget, creating a repayment plan, and realigning your finances with his priorities. Psalm 37:21 reminds us, the wicked borrows but does not pay back, but the righteous is generous and gives.
Charles Spurgeon once warned that debt is a small beginning, but a giant's ending. It starts as a convenience, but ends as a chain that holds us back from where God wants us to go. That's the heart of this conversation. Freedom from borrowing isn't about legalism. It's about availability. It's about being ready like Isaiah to say, here I am, send me. And that's the invitation today. Take one step, seek wisdom, build margin, and walk in grace. Because when God calls, the goal isn't to say maybe someday, it's to say yes, Lord, I'm ready.
This is something I explore in my devotional, Our Ultimate Treasure: A 21-Day Journey to Faithful Stewardship. It's available now at faithful.com/shop, where you can pick up your copy. And if you'd like to go through it with your church or small group, we offer discounted pricing for bulk orders. Again, that's faithful.com/shop.
All right, your calls are next at 800-525-7000. That's 800-525-7000. I'm Rob West and this is Faith and Finance on American Family Radio, biblical wisdom for your financial journey. Stay with us, we're just getting started.
SEGMENT 2
Rob West: Grateful to have you with us today on Faith and Finance on American Family Radio. I'm Rob West. Well, we'll be taking your calls in just a moment, so this is your opportunity. Is there that burning question in your life, financially speaking, something you've been wrestling with: Do I go this way or that way? Maybe they're both good decisions. You're just wondering, what's the priority order? You know, often I'll hear from folks saying, should I pay down debt or should I save? Well, those are both great options. Should I pay down debt or should I give? Again, we want to honor our obligations. We should absolutely, as an overflow of the grace extended to us, we should live a generous life. Both good options, which is the priority? Well, often it's a matter of discernment and talking to the Lord, and then looking at the practical implications of each, living within your means as a good steward, but also following the leading of the Lord. There's a healthy tension there. So for you, maybe it's debt repayment, maybe it's savings, maybe it's giving, maybe it's investing or preparing the next steward, when to take social security. Whatever you're thinking about today, we'd love for you to call. The number: 800-525-7000. That's 800-525-7000. The team is standing by. We're ready for those calls right now. 800-525-7000. We'll begin that in just a moment.
The Social Security Administration has announced a 3.6% cost of living adjustment for 2027. That's the largest increase since 2023. That means the average retiree will receive about $75 more per month or $900 annually. Nearly 72 million Social Security beneficiaries will see their increase beginning in January, while SSI recipients will receive their adjustments starting December 31st. The increase comes as inflation continues to strain household budgets. You're feeling it everywhere, I'm sure like I am. It's particularly true for older Americans who depend heavily on Social Security. So, if you receive Social Security benefits, review your 2027 benefit notice, account for any changes in Medicare premiums, and then adjust your budget accordingly. Hopefully, this will be a welcome addition of a few extra dollars a month that will find its way into your budget, hopefully helping you close a gap maybe that already exists. But 3.6% cost of living adjustment for 2027.
Again, those phone lines are open. We'll begin taking your questions here in just a moment: 800-525-7000, any financial question today. That's 800-525-7000. You know, we started today by talking about freedom from borrowing. And I think the key verse here is Proverbs 22:7: "The rich rules over the poor, and the borrower is the slave of the lender." And we understand that as a starting point, simply to know that when we get into a debt relationship, the relationship changes, which is why we're so adamant, and I believe God's word is very clear, that we shouldn't co-sign. Because the Federal Trade Commission tells us half the time or more, the person co-signing will have to step in and cover that obligation, because and perhaps it's not from anything that was intentional, but the often result of that situation pretty, you know, basically because they were unable to borrow on their own without you. That's a pretty good indicator that there's some things going on there that led to them needing you in the first place. Often, those factors are what ultimately prevents them from making good on the obligation. But it's this change in relationship that's the big idea. This master-slave relationship, because especially when it's a family member or a friend, which is often what we're talking about when we have someone who's asking for a co-sign. You know, it's a situation where if even without their, you know, desire to do so, when they default on it or are unable to pay, it creates that relational damage, right? And so we don't want that. Which means we find other ways to bless them. Maybe you can come in and and, you know, write a check directly to something that makes sense to help bless them. But, you know, it's not co-signing. I would rather you, much rather you make a gift without any strings attached than you coming in, providing your good name and credibility, and then, you know, despite their best efforts, they're unable to make good on it. Now you're having to decide: Do I let it default, which is going to hurt my credit? Do I step in? I wasn't planning on it. Now we've got relational carnage. We don't want to have that.
So that's a key idea when we think about borrowing. Now, the other thing to consider when it comes to borrowing is some of these timeless rules that we talk about here on this program regularly, that I think are really just so essential for you to understand. When we think about borrowing, which by the way, again, is not a sin, we just need to heed the warnings, we need to understand the change in relationship, but those rules are, first of all, the most key idea is we try not to borrow for anything that's depreciating, right? We only borrow for appreciating assets. The rule goes like this: you know, I want to make sure the economic return is greater than the economic cost. You might say, well, where does that come in? Well, think about it. You're buying a house, you're paying what used to be 3-4%, now it's 7% plus. But the idea would be that over time, that home would be appreciating. It allows you to make a major purchase that you wouldn't be able to otherwise afford, and, you know, the economic return over the long haul should keep up with or exceed the cost of the interest. That's a good borrowing decision, so long as it fits in your budget, and that's where people get into trouble there with one of the three budget busters being housing. So, make sure the economic return is greater than the economic cost.
Number two: spousal unity. And this goes without saying: we don't borrow unless we're both on the same page. We just, that's a showstopper, automatically. So, make sure there's not any kind of borrowing behind the scenes. And unfortunately, financial infidelity is far more prevalent than you might imagine. Maybe it's something that's been present in your life—I pray not. But let's just make sure we're above board. We don't have any secret credit cards. We're not making borrowing decisions without our spouse's full knowledge and buy-in. And if one of you is not on board, that's it. We're done.
We also don't want to rob God an opportunity to provide. Now, we can't take an opportunity away from God. He's going to do what He wills. I will say though, so often when people get into a tight spot financially, they'll just kind of rush in with the credit card to try to cover that obligation rather than just saying, "Lord, I'm going to trust you. What do I need to do to cut back and take care of this myself? Lord, will you provide even unexpectedly? That may come with a knock at the door, it may come with somebody at church offering to help with something. It may come with an unexpected bonus or a refund of some kind." Let's trust the Lord, invite Him into the situation, and not rush to borrow just because it's available. So, those are some of the rules that we want to think about as we're considering how to be God-honoring in our money management and our borrowing and lending.
I would say the other piece is just really be careful when it comes to kids, especially adult kids, in terms of, you know, so often we want to bless our kids, and therefore we'll just put our name on a loan. It could be a student loan, it could be a first car. Again, unless you're ready, willing, and able to step in and cover that obligation, I would say let's find another way. Because what we don't want is that relational strain between parents and children as a result of borrowing decisions, despite their best efforts and your desire to bless them, unless we have clear expectations. I would say even written down, which feels weird because you, you know, you've got a family member and you're saying, "I don't want to document this, this isn't a loan." Well, that's where we get into trouble, because we have unmet expectations. Somebody remembers something differently than somebody else, especially years down the road. So, just be on your guard there. I hope this is practical and helpful. Here's the idea: we want to be faithful stewards. We can borrow and still be faithful. We just need to give some careful consideration before we do.
All right, we're going to take a quick break. When we come back, we're going to dive into some questions. Linda, Ray, coming your way. We'll be right back on Faith and Finance.
SEGMENT 3
Rob West: Well, God owns it all. You and I, we're stewards. We're managers for the King of Kings. Money, yeah, it's a tool. It's a good gift from a good God to be used for God's glory. That means we provide with it. We enjoy it, creating memories and experiences for our family. We love our neighbor with it by giving and investing in a way that promotes human flourishing. We can advance the Gospel, we can protect the vulnerable. That's the power of money when it doesn't become an idol in our lives. I think it was John Calvin that said the human heart is a perpetual idol factory. And most often, that idol—at least in the most prosperous nation in the history of the world where you and I find ourselves—is going to be money. We don't want to let that happen. It can't provide the security or significance we will look to it for. So instead, we see it as a tool. Jesus sits on the throne of our life, and then it becomes a really powerful force for good.
We know you have practical questions as you give, save, and spend. We want to help you make those through the lens of biblical wisdom. Everything we do here at AFR is about God's word and a biblical worldview. And for this hour of each day, it's your money management. It's your financial life, which by the way, is a mirror. It reflects—your spending reflects—what's most important to you. And so we want to line up your spending and your money management and your investments and your giving with your values as a Christ-follower. We want to do that as you call with your questions today: 800-525-7000. The lines are open. We're ready for you: 800-525-7000. Let's take some phone calls here. Linda has been waiting patiently in Mississippi. Go right ahead.
Linda: Good morning. I just have a praise report and then a question.
Rob West: Hi, Linda. Great! We'll take both of those.
Linda: Last year—I called, I don't think it's been quite a year ago—and I was in a relationship. I was engaged, and we were thinking about selling one house or keeping both houses. And I had questions about all that, and somebody called from your organization and gave me a lot of great advice. But it all worked out. I am single and happy and staying where I'm at. And not only that, I started drawing on my ex-spouse's, and God has increased my income threefold.
Rob West: Wow! Well, Linda, thank you for that praise report. I'm delighted to hear that that's the way it turned out, and I'm so thankful that our team at FaithFi could have been helpful to you. So thanks for sharing.
Linda: Very much so. The question I have today is—well, I wanted to give other people encouragement that, you know, God sees things we don't know, and He's got a plan, and we just have to trust Him and His timing and His how. But my question now is, I will soon be 67, my mother will be 87. We have an appointment tomorrow with an insurance broker to find out—you know, we have Advantage plans, and they no longer offer that. So we don't really know what to do. And so do you have a resource for us that we can get some information about how to make the best choice?
Rob West: Yes. Well, thanks for that question. It's a good one, and it's an important question. In terms of thinking about where you need to go from here, having the right Medicare supplemental coverage can make a tremendous difference, both in terms of financially and in peace of mind. In terms of her current coverage, does she have original Medicare with a Medigap or a Medicare Advantage of some kind? What does she have right now?
Linda: Medicare Advantage. That's what we both have.
Rob West: Okay, great. And what you want to do is look beyond the monthly premiums to the deductibles, the copays, the out-of-pocket expenses. You want to check your prescriptions, make sure her medications are covered affordably under her Part D. And then you want to be careful about switching because switching can require medical underwriting, depending on your state and circumstances. Do you have somebody like an independent broker, somebody who represents multiple companies that you could access to help you look around?
Linda: Yes, that's who we're going to tomorrow. But you've already—what you've already said will help a lot. And we had Advantage, and they said that they no longer carry that, and I was thinking that that was not a broker choice, but a something that the insurance industry no longer offers as a whole. Am I wrong in that?
Rob West: Well, in terms of the coverage that you have right now, it could be that your plan is being discontinued. And so you really want to—you know, I think having this independent broker who can help you navigate what options are available today and what best meets her needs. So in addition to what I had already shared about checking the total costs, looking at her medications, making sure they're covered, and then getting that independent broker involved, the other thing is you could do a little bit of research before you go in terms of where to go. I would say medicare.gov has a plan finder, and so you can compare Medicare Advantage and Part D prescription plans. You can review the premiums and the drug coverage and explore your options there. So that's medicare.gov, the plan finder. I think that would be really helpful.
And then there's the State Health Insurance Assistance Program that could be helpful as well, that you would find at shiphelp.org—SHIP for State Health Insurance Assistance Program—so shiphelp.org. And they provide Medicare counseling and could help you compare Medicare Advantage versus original Medicare and a Medigap supplement. And so I think if you looked at both of those prior to meeting with the broker tomorrow, you know, that could be a great option for you. You know, you could look at guaranteed issue Medigap coverage, but that's generally going to be, you know, for somebody who has pre-existing conditions. It's also going to be a bit more expensive.
In terms of your application window, you generally have, you know, it begins 60 days before your Advantage coverage ends and continues for 63 days after. So you just need to, you know, be judicious about the time that you, you know, take advantage of this special opportunity to move into another supplemental plan without the medical underwriting. And so I would start with shiphelp.org and then meet with that broker tomorrow. Thanks for your call.
SEGMENT 4
Rob West: Thanks for joining us today on Faith and Finance here on American Family Radio. I'm Rob West. We've got some lines open, we're taking your calls and questions. We'll get to as many as we can between now and the end of the program. So, anything on your mind today, financially, we'd love to help you think through it and make a decision that aligns with your values as a Christ follower. Just call right now: 800-525-7000. That's 800-525-7000. We've got some lines open, the team is standing by, we would love to hear from you today. Let's go to Nebraska. Hi, Lori, how can I help you?
Lori: my call.
Rob West: Hey, Lori?
Lori: Oh, there you are, go right ahead.
Lori: Um, I'm calling because, well, basically, I'm looking within the next year or two to purchase a car. I'm presently 64, I'm on disability and Medicaid. I will be 65 in April and I'll have to go on Medicare. And I'm—I know, I'm aware of all the guidelines for Social Security and—and Medicaid and all that. Um, however, my car is 20 years old, it's doing me real good, it's a Toyota, but I know that I'll probably have to be purchasing another one, and I have some money in an IRA and a Roth IRA. I—I would like to be able to take that money out of there to purchase the car or at least put a good down payment so that I don't have car payments. But I know they're going to look at it as income, or at least that's what I've been told. Is there any way around that, or am I better off just taking out a loan and making payments? I don't want to be penalized and lose my—any of my benefits, or, you know, anything like that.
Rob West: Sure. Yeah, and it is SSI, not SSDI, correct? Not Social Security Disability?
Lori: I think it's disability. I don't know, I had to apply for an early retirement at 62, and they told me to apply for disability, and I never thought I'd get it, but they gave it to me right away. So it's actually $500 more than an early retirement.
Rob West: Okay. All right. Yeah.
Lori: Okay.
Rob West: Well, let's just confirm that. But if that's the case, that's good news, because if you receive SSDI, social security disability insurance, you can generally withdraw money from your traditional IRA or Roth without reducing those benefits. See, with SSDI, IRA and Roth withdrawals don't count as earned income and shouldn't affect your payments at all. Um, you know, the the traditional IRA withdrawals are going to be subject to income tax, the the Roth withdrawals should be, uh, tax-free, uh, and then, you know, you're over 59.5, so you're not going to have that penalty. Um, but in terms of, you know, SSDI disability insurance, um, you know, you shouldn't have any issue with losing a disability check because you withdraw money from a retirement account. Uh, there could be an issue if it was SSI, um, but you know, which is supplemental security income, where it would count as unearned income, and then it could reduce or eliminate your SSI payment for the month. But not so with SSDI.
Lori: I know, I'm pretty sure it's SSDI. Okay, but I know it would affect Medicaid, right? But I only have—I just have a few more months before I'm off of that, and I think the car will last until then.
Rob West: Yeah, so if you receive SSDI, then you already qualify for Medicare after 24 months of disability benefits, um, and so, you know, you'll—you'll obviously switch over there when you turn 65, uh, I think you said in April, uh, then your, you know, normal enrollment period begins in January, and then you would review your enrollment status and potential premiums.
Lori: Yeah. Okay. All right. So that's good to know I won't be penalized by taking that money out because that would be better than having to make car payments.
Rob West: That's right.
Lori: Exactly right.
Rob West: Hey, thanks for your call, Lori. If we can help further, don't hesitate to reach out. Uh, let's see, let's go to Mississippi. Catherine, how can we help?
Catherine: Yes, Rob. Um, I first of all, I just want to thank you for your ministry and your program. It's been valuable. And, uh, I've called you a couple of times over the last several years, and in fact, you sent me a book of the "Splitting Heirs," which I would highly recommend to everyone. I think it's a—a wonderful way to, uh, look at the future and your—your your money, and, uh, what to do, what to do about it.
Rob West: Well, that's great, Catherine. Thank you for mentioning that. I agree, "Splitting Heirs" by Ron Blue is—is one of my favorites if you're thinking about really the questions to ask surrounding wealth transfer plan. So that's a great call out. How can I help you today?
Catherine: Yes. Well, um, my husband and I have been talking about, um, possibly redoing a will. We have a simple will. We have two adult children who are not married, um, and so we have no heirs to speak of, at least not now. Um, and, uh, and so we have a simple will. Our children are harmonious. There's no—no issues, no, um, in fact, when we made our simple will, um, our attorney said, uh, your—your—your children, due to the fact that you might have high inheritances from your parents, your children should get prenups if they ever do marry, and then if they do have children, that way, uh, they're—the money—the money would be guaranteed, should there be a problem of going to your grandchildren or great-grandchildren. Um, but that's just a little side note, because we weren't—we weren't, uh, we were surprised by that, and we weren't expecting that. But it was—it was good legal advice at the time. Uh, and so now we're trying to, to, to decide when we do see the attorney, um, we come into significant inheritances from our, um, from our parents who are now deceased, and we have several properties, and we don't know if we should, um, go the way of a trust? Our—our feeling is that things would equally be divided between our children should we pass, and it would be harmonious. However, if they pass without heirs, um, marriages or heirs, um, or both, then we would want that money to go back to our church, whatever's left over from—from that. And we don't know what to do. We don't know—we're not really sure even what we should ask of the attorney, so we—I thought I'd call you.
Rob West: Yeah, I appreciate that. Uh, if you don't mind me asking, what was the total estate that came your way at their passing?
Catherine: Well, it's in—it's in several million, and, uh, that puts us also with our—our money and our properties, um, into, um, you know, over 10 million. Um, and that sounds—sounds utterly, um, it's just—it's it's it's it just—it's overwhelming almost. We can't even imagine the amount of money, to be honest. Uh, I mean, we never dreamed of it, and we and we can't even imagine it. So now, um, we—we feel like we, um, probably need to do something on paper that protects everybody and also, um, a- accounts for that. And we do give the—uh, um, the maximum amount every year to our children for what we can give in gifting. So we're trying—we were thinking that if we continue to try to reduce the estate, maybe we won't have to do a trust. But if we want all the, if we pass and they pass and there's money left, we'll want that money to return to our church. So, um, we're—we're trying to figure out, do we need a trust or not need a trust in that way?
Rob West: Yeah. Yeah. Well, at this level of wealth—and I agree, it is significant, and obviously the Lord saw fit to entrust it to you and your husband, Catherine, so I have every confidence that, uh, you all will be good stewards of that and already are—but I think a revocable living trust combined with an estate plan is worth serious consideration rather than relying on a simple will. Um, you know, essentially it would help to transfer the properties outside of probate, provide for management if either of you become incapacitated, it can develop the gifting strategy to give money to your children during their lifetime, which you're already doing, but to also perhaps get them involved in some giving right now, which is a great way to model just wise stewardship. Um, we just came out with a new resource, it's our second field guide called, "How do I prepare the next steward?" I'm going to send you a copy and hang on the line, we'll talk a bit more about it after this break.
SEGMENT 5
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 Catherine. Catherine's wondering, she and her husband, how to be wise managers of what God has entrusted to them through their own assets and a significant inheritance. They have an estate worth more than 10 million including properties and and other assets. They want to leave it to their kids who are both unmarried and want to involve their church as well in in their giving. They're starting to give some of it to the kids up to the limits now, um, so they can try to reduce their estate. But she's just wondering, how should we think about the estate planning? Should we involve a revocable trust? And I do think because of the size and complexity here, at a minimum, I would encourage a revocable trust. I would also have a Certified Kingdom Advisor, Catherine, if you don't already have an advisor, who can walk alongside you. I think it's also important to just think about what does it look like to pass wisdom before wealth? And our field guide "How Do I Prepare the Next Steward" literally just came out. We just got them into, uh, inventory this week from the printer, the very first issues. And I'm going to send you one. You're going to be one of the first people to receive it, Catherine. But I think you and your husband can work through it, and it's going to help you think about how do we pass faith and- and virtues, uh, and character before we pass financial wealth? And, you know, your kids are probably doing great, and that's awesome. But what can you do to be intentional to prepare your children, um, to manage what we you're going to leave them and be God-honoring with their wealth? And, you know, I mean we're going to look at things like, uh, you know, how can you consider giving while you're still alive? Uh, you know, giving gradually or giving at death, and, you know, with substantial assets, there's going to be some opportunities to get them involved in that now. What does it look like to involve your kids in some financial decisions and perhaps even some of the property management responsibilities so they're ready for that? Defining the purpose of the inheritance, you know, what, uh, what you hope the money will accomplish and what does it look like to communicate that to your kids, um, in terms of them being able to take that and use it in a in a God-honoring way, and then getting them to engage early with some advisors and maybe even being in some of those conversations? And that advisor can help you think through, um, you know, how to communicate all of this to the kids, you know, to the extent you haven't already done that. So, uh, I think, yes, the answer is, I think a trust makes sense, but hopefully this will give you some other ideas to begin to consider what it looks like now to prepare them for what's coming down the road.
Catherine: That sounds excellent, Ed. And thank you so much. It sounds like a wonderful book. You said a revocable living trust plus something? Did you say plus a plus a will or?
Rob West: Well, you- yeah, you definitely need a will and as a catch-all, kind of a what's called a pour-over will, so anything not in the trust would be caught by the will. You're going to need the other basics like a durable healthcare, uh, surrogate, durable power of attorney for financial and healthcare-related decisions if- if, you know, your husband were to pre-decease you or vice versa or either of you are incapacitated. Um, you know, so those are at a minimum, a living trust for end-of-life decisions. And then just because of the size of the estate, you know, right now, um, you know, there aren't any estate taxes until you get quite a bit higher than what you have, but that could change, especially with a different administration. We could see an estate of your size in excess of 10 million absolutely having significant estate taxes, and we just want to make sure that we're doing the planning, which is where an estate planning attorney would come in, to minimize taxes, even if that means accelerating your giving while you're alive. And and you may want to do that anyway just so you can get more of this into God's kingdom. Because if, you know, many people in your situation will say, well, my kids don't need this much money and rather than it just sitting there, what if we were to start, you know, doing some giving right now to the causes that are aligned with our passions and the heart of God and doing incredible work in Jesus' name? Let's start doing some of that now and and get the the benefit of being involved in that. I mean you- you mentioned reading Ron Blue's book and you probably remember the line in there, "Do your giving while you're living so you know where it's going." And, uh, I think that's not a bad idea for somebody in your spot.
Catherine: Yes. Yes, those are all excellent. I hope everybody listening feels, uh, the same way, and I'm sure they do. Uh, and I really like that you said, um, "wisdom before wealth" is- is key. And- and we hadn't considered about having a certified Kingdom advisor in addition to the attorney. So I think that's a great idea that somebody might be able to help us walk through this without anxiousness or fear and to really start to make a plan.
Rob West: Yeah. Catherine, I'd be happy to hand you off to a- an advisor who would be uniquely skilled with a situation like yours if you'd like a recommendation, and my team can get your information, and we could connect after the show and I could point you to someone who could be, uh, really, I think, a blessing to walk alongside you.
Catherine: That would be great. I would appreciate that very much. I'm sure my husband would.
Rob West: Well, let's do that. You stay on the line, our team is going to get your information, we're going to put "How Do I Prepare the Next Steward" in the mail to you, and then, um, uh, I'll get in touch with you and we'll- we'll talk about where you go from here. But I appreciate your call today, your kind remarks about the program, and look forward to connecting real soon.
Catherine: Wonderful, uh, thank you, Rob. It's so wonderful, and- as again, it's a- your show is just, um, such a Godsend to, uh, not only us, but I know there must be so many people out there. I listen to the show regularly, and it's, uh, it's a real blessing and inspiration with a lot of, uh, good- good sound advice and a lot of hope for the future.
Rob West: Well, thank you very much. That means a lot. Lord bless you. Hang on the line, our team will get your information, and Catherine, we'll talk real soon. Let's go to North Carolina. Hi, Joy, thanks for your patience. Go ahead.
Joy: Hey, Rob. Um, have a question concerning a financial manager that we've had for about at least 10 years, maybe a little longer. Um, I am not been real satisfied, um, you know, with him of late. He went through a bad divorce, and we really saw a turn, uh, in him, and he says he's a Christian and I'm not debating that. But I- I appreciate having a Christian manager, but, um, I just don't know whether it's time to look elsewhere. My mother, who's almost 90, has just, uh, gone with a major, uh, well-known company, and my brother, he's a pastor, has, uh, has this company as a part of their church, uh, a ministry, and he is only 15 months older than I, and he's making a lot more money off of his assets than we are. And I- I just don't know if we should look into changing or what.
Rob West: Yeah. Well, I- I love the direction you're thinking here, and, you know, there's nothing wrong with considering whether or not there's a better fit out there, because this is an important role, uh, you know, for somebody to walk alongside you with your investments, with your financial planning. And I also think it's critical, you know, more and more Christians are saying that the worldview and training of my advisor matters. And I want an advisor who, yes, is incredibly skilled and competent, and can ask the right questions, and has the technical proficiency, but also understands their role in bringing wisdom, wisdom from above, from God's word, alongside every financial decision, including the role of money in our lives and, you know, how it can become an idol and, you know, what it looks like to live content, and what it looks like to give generously, and how much is enough for the future, and how do I think about my investments in a way that aligns with my values? Do I want to be invested in companies that are in industries that I don't even agree with? Maybe you have some of those sitting in your portfolio right now. And so that's where I think a certified kingdom advisor could really come alongside you and help with all of that, bring the best technical expertise, but with that godly wisdom as well. So I would head, Joy, to findaCPA.com, findaCPA.com—that stands for Certified Kingdom Advisor—probably interview two or three CKAs there in North Carolina, find one that's the good fit. But I totally agree about the importance of that and making a change if you found someone like that, I think would be, you know, a really good idea. Um, are you comfortable, you know, navigating the web in that way, or would you rather our team connect you directly?
Joy: Well, I had another part to that question. What is fair and logical to a finance manager to, you know, what should I expect?
Rob West: Yeah. Typically, if they're providing what's called discretionary money management, where they're taking responsibility after doing all the discovery and the planning with you and understanding your risk tolerance and goals, if they're the one managing the money, and often this includes the financial planning, it would typically be somewhere around 1 and 1/4 to 1 and 1/2%, could be as low as 1%, depending on how much, uh, you have in the way of assets. But that would be based on the assets under management, the annual charge between 1 and 1 and 1/2%. Unfortunately, I'm out of time, Joy. Stay on the line, our team will help you, and we'll be back tomorrow with more Faith and Finance. Join us then. Bye-bye.
What if debt isn’t just a financial issue—but a discipleship one? We often view borrowing through a financial lens—rates, payments, and timelines; however, in Scripture, we are invited to see the spiritual implications, too. Debt can shape our freedom, generosity, and ability to respond when God calls. On this Faith & Finance on AFR, Rob West explores a more biblical perspective on borrowing. Then, it’s on to calls.
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