Rob West: What will you leave to the next generation, and will they be prepared to steward it well? Hi, I'm Rob West. A faithful wealth transfer involves more than deciding who gets what. Scripture gives us a remarkable picture in David, who prepared Solomon not only with resources, but with wisdom, purpose, and responsibility. Today, Dr. Kelly Rush joins us to explore what David's example can teach families about passing wealth well. And then it's on to your calls at 800-525-7000. This is Faith and Finance on American Family Radio, biblical wisdom for your financial decisions.
Well, what a treat to have Dr. Kelly Rush back on the program. She's a professor of finance, financial planning program coordinator, and chair of business and technology at Mount Vernon Nazarene University. She also serves on the board of Kingdom Advisors, and Kelly has a real passion for helping students develop a biblical worldview of money. And today, she's bringing that perspective to an important topic: biblical wealth transfer. Kelly, great to have you.
Dr. Kelly Rush: Thank you, Rob. It's great to be back with you.
Rob West: Kelly, let's start by setting the stage. Why is David's transfer of wealth to Solomon such an important example for us to consider?
Dr. Kelly Rush: Oh, well, David was remarkable. We think of him as a shepherd, a musician, a warrior, a king, but he was a father. And his son Solomon ultimately became history's wealthiest king. But before that happened, David prepared his son for great riches and great responsibility. And that responsibility was to build a temple for the Lord in Jerusalem. But what makes me so excited about David's wealth transfer is that Kingdom Advisors' wealth transfer principles reflect David's actions.
Rob West: Yeah, they sure do. We often refer to this as something called the unity principle here at Kingdom Advisors. I'd love for you to unpack that, and how do we see David and Bathsheba model it in their planning for Solomon?
Dr. Kelly Rush: Yeah, well, the unity principle is an important concept that Kingdom Advisors apply when helping clients make wealth transfer decisions. And the principle is that husbands and wives need to be unified in their plans for transferring wealth. We see this powerful example in scripture with David and Bathsheba in 1 Kings chapter 1. So David's throne is under attack by one of his sons, Adonijah, and he attempted to make himself king. And it was Bathsheba who really stepped in and helped resolve that situation. She brought the matter to David's attention, and David was able to act on Bathsheba's reminder of what the Lord would have them to do. And ultimately, their unity in the decision that Solomon would reign on David's throne after David was what really resolved that attempted coup before it could gain momentum, and gives us a really beautiful picture of what it can look like when couples are on the same page in terms of wealth transfer decisions. And when husbands and wives are united in their plans today, it fosters the same kind of peace for families. The entire family can move forward with confidence—children, heirs, siblings, and their family members have greater clarity about what comes next when that couple is speaking with one voice.
Rob West: Yeah, that's really important. So it's this unity principle: husbands and wives need to be unified in their plans for transferring wealth. That leads us to the next principle we teach, and that is the wisdom principle—the idea that we shouldn't pass on wealth without also passing wisdom. Where do we see that in the story of David and Solomon?
Dr. Kelly Rush: Assets will inevitably be transferred because ultimately no one takes wealth with them when they die. Parents have this great privilege and great responsibility of preparing the next generation to steward wealth wisely. And yeah, you're right, we do see that with David's relationship with Solomon. David prayed that the Lord would give Solomon wisdom and understanding. And then David communicated that wisdom directly to his son. He told his son, "I want you to know the God of your father and serve him with a whole heart." So Solomon needed that spiritual counsel early on, but David didn't stop there. He also gave Solomon practical instruction for the work ahead. David had detailed plans for the temple, including the treasuries and the inner rooms, and he provided those plans to Solomon. We know those lessons took root because Solomon went on to build a magnificent temple, and he was also a man of wisdom. That principle remains just as important today. Parents should provide both biblical foundations and practical skills for transferring resources, just like David did with Solomon. Passing wealth to someone lacking wisdom could cause significant harm. But when wisdom comes first, the next generation is prepared to steward resources they receive. That is what it means to pass wisdom before passing wealth.
Rob West: Yeah, that's a big idea. Faithful wealth transfer is about more than passing assets. It's about preparing the next generation to receive the assets and steward it wisely. We're joined today by Dr. Kelly Rush. She's a professor of finance at Mount Vernon Nazarene University. And much more on biblical wealth transfer right after this. Stick around.
SEGMENT 2
Rob West: One of the key decisions you'll make as a steward is selecting and preparing the next steward. And we're talking about principles from God's Word that really can inform that process. Dr. Kelly Rush is with us today. She's a good friend, she's a board member of Kingdom Advisors, she's also professor of finance and financial planning program coordinator at Mount Vernon Nazarene University. And we're talking about David and Solomon, and how we can glean wisdom from God's Word for the wealth transfer process. Before the break, we talked about the unity principle, that husbands and wives need to be unified in their plans for transferring wealth. We also talked about the wisdom principle, that you must transfer wisdom before wealth. Now, Kelly, before transferring wealth, David, of course, considered Solomon's readiness to receive it. So, what can families learn about avoiding the danger of giving too much too soon?
Dr. Kelly Rush: Mm, I love that David did this. So, David knew of his son Solomon that he was young and inexperienced. We know that from 1 Chronicles 22. And so, it was David's responsibility to get him ready, and that preparation unfolded in stages. He imparted wisdom first, and then he imparted practical plans and guidance, and then at just the right time, those resources were transferred to Solomon. And families really have the opportunity to do the same thing today. Imparting wisdom to young children, and practical skills as they get older and older, and then eventually they'll be ready for those resources at just the right time. Today, there are many ways families can avoid too much too soon. It can begin early by giving children incremental responsibility as they mature. For example, parents can use joint accounts with minors or young adults to help them learn how to manage resources. As those heirs grow older and the value and impact of the wealth increases, trustee oversight can provide a layer of both training and protection for the family.
Rob West: Yeah, no doubt. Let's dig into that a little deeper. Kelly, how can parents wisely determine both the right amount and the right timing when transferring wealth to the next generation?
Dr. Kelly Rush: Well, there really is no one-size-fits-all answer to this. Before making significant gifts, parents should consider the spiritual, emotional, financial maturity of the person receiving the wealth. It's not simply about age. And where there are gaps in maturity or experience, those are really opportunities for further training. That's what we see David doing with Solomon. And today, it really looks like open communication. Heirs shouldn't be surprised by wealth transfer plans or even learn about wealth transfer plans after a parent passes away. Instead, parents should communicate both their plans and their expectations well in advance. Open communication then gives the heir an opportunity to ask questions. They can seek counsel from their parents, and they can speak into the timing of when they believe they are ready. Families should recognize that wealth transfer plans are not static. They should adapt as the next generation matures, as circumstances change, and as new opportunities for stewardship emerge.
Rob West: Yeah, that's exactly right. And this is, by the way, folks, a key place that a Certified Kingdom Advisor can enter this conversation, because they can actually not only help you think about applying these principles in your own wealth transfer process, they can help with that family meeting and how you communicate that down through the generations. Just go to findacka.com to connect with a Certified Kingdom Advisor in your area. Now, Kelly, let me talk about the next principle, and that is the treasure principle. It's the idea that we can't take our wealth with us, but we can use it now for purposes that outlast us. Where does that show up in David's story?
Dr. Kelly Rush: Well, the treasure principle is really about recognizing that our wealth has a purpose beyond our own lifetime. We can't take earthly treasures with us, but we can use them in ways that create lasting kingdom impact. David's example here is remarkable, too. The value of the treasures described in 1 Chronicles 22 and 29 would be worth tens of billions of dollars today. It was vast wealth because David dedicated resources from both Israel's national treasury and his own personal wealth toward the building of the temple. David knew God had not called him to build the temple; Solomon would do that. But David had the privilege of preparing the resources. And David wasn't alive for the groundbreaking, but he was highly involved in the planning and saving ahead of time.
Rob West: Yeah, that's an important detail. Now, for families today, though, what are some practical ways, Kelly, to use wealth now for purposes that will outlast us?
Dr. Kelly Rush: Well, there are several ways families can send it ahead. First, prioritizing generosity. Generosity is a muscle we build over time. Families can fund ministries or missions while you're here to see the fruit, and it will be easy to build generosity into your estate plan. Second, families can create a mission statement that helps direct future inheritances toward purposes that reflect your family's values and internal priorities. Families can consider tools such as testamentary or charitable trusts that can help guide heirs toward stewardship rather than simply consumption. Finally, involving heirs in giving decisions early. Shared giving experiences can strengthen relationships while passing along both values and a vision for generosity. The goal is to make generosity a part of the family culture before wealth is ever transferred.
Rob West: Yeah, that's a really big idea, to build that in and practice it ahead of time. Even get your kids involved in the giving. Perhaps that's where a donor-advised fund can come in. And this can work at all ages as well. You can take your young children and get them involved in the giving, and perhaps even your adult children as well. Kelly, what's the key takeaway you'd want to leave families with who hope to finish well and steward what they pass on faithfully?
Dr. Kelly Rush: I would say, maintain an eternal perspective. Ron Blue taught us that the longer your perspective, the better your decision is today. We pass wisdom to our children today because we want them to steward well in the future. We communicate our wealth transfer plans today because we want heirs to be prepared. And we build generosity into our estate plans today because we want to send resources ahead for the kingdom. Just like David did, we can prepare the next generation and align resources with God's purposes beyond our lifetime.
Rob West: Oh, this is so good. Kelly, I want to finish with your own personal experience in this. Now, I know your kids are still at home, but how can we use financial capital to really grow the spiritual capital, and perhaps even through experiences or otherwise?
Dr. Kelly Rush: Yeah, for our family, we have used financial capital for things like family mission trips, and we started early, taking our kids as a family, traveling together, teaching them to share the gospel with all people. And so, that's been something that's been a blessing for my kids as they've grown up, and we want them to then continue that with the next generation because they've been taught how to use financial resources to build spiritual capital in the next generation.
Rob West: Oh, so good. Well, folks, this is such a key idea that we want to pass wisdom before wealth, that we can look to God's Word for this roadmap, that we need to be unified with our spouse, that we need to be intentional because we can't take it with us, but we can send it on ahead, and that we always want to pass wisdom before wealth. Some really key ideas when it comes to thinking about preparing the heirs for the assets and preparing the next steward. Kelly, thanks for your time today.
Dr. Kelly Rush: Thanks, Rob. My pleasure.
Rob West: That's Dr. Kelly Rush with Mount Vernon Nazarene University. And before we head to the break, I want to let you know that our newest FaithFi Field Guide, How Do I Prepare the Next Steward?, launches in just a few weeks. It's designed to help families think beyond simply passing on assets, and consider how to prepare the next generation with wisdom and values and practical skills to steward wealth faithfully. You can pre-order your copy or place a bulk order before it's released at faithfi.com/shop. That's faithfi.com/shop. We'll take a quick break and then come back with much more. Here's our goal: to be an encouragement to you, to point you back to God's Word, and help you live as a wise and faithful steward. This is Faith & Finance on American Family Radio. Thanks for being with us. More to come right after this.
SEGMENT 3
Rob West: Thanks for joining us today on Faith & Finance. It's here on American Family Radio. I'm Rob West. We're going to take your calls here in just a moment, so now is the time to call: 800-525-7000. Again, that number: 800-525-7000. The calls are coming in. We do have some lines open, though, at the moment. So, as you think about managing God's money, and as you spend, and save, and give, we'd love to weigh in on whatever those questions are you're wrestling with today in light of biblical wisdom.
And it all starts with this fundamental idea that God owns everything, you and I are stewards. Well, then we logically get to the question, "Well, what is the purpose of wealth? What is it for?"
And I think the clearest answer to that perhaps is in Ephesians 4:28: "Let the thief steal no longer, let him work with his hands doing honest labor so that..." You know, a lot of people might think "so that" the answer might be you can provide for your family, just based on our typical teaching that we hear in even Christian circles. And that's not what it says. It says, "so that he can share with someone in need."
So, perhaps the clearest answer to that question is to give, that God entrusts to us what we're to allow to pass through us to meet the needs of others. Now, keep in mind that doesn't mean we can't enjoy it, it doesn't mean that we shouldn't provide. We should do all of those things. But I think we need to understand both the danger and the opportunity related to money, because money is so closely connected to our hearts.
You know, keep in mind our circumstances can shape our hearts, but we need to be on our guard. Now, scripture doesn't condemn wealth; in fact, we see it used for kingdom purposes and human flourishing in so many areas, but it can become an idol. You know, the rich fool, his problem was that his whole world began and ended with himself. He did not look beyond his own situation, first of all, to think about how did I receive this, to acknowledge the Giver, and to be seeing it as a conduit for blessing to others. Everything was about his grain, and his barns, and his harvest, and his life. That's where we need to be careful.
So, ultimately, it's about stewardship. We receive with gratitude, we enjoy appropriately, we invest thoughtfully in a way that aligns with our values, we provide responsibly, we love our neighbor, and at the end of the day, we glorify God. And that's what we want to help you do here on this program, day in and day out.
So, if you've got a question today, something you're wrestling with in your financial life, call right now. We'd love to tackle it with you at 800-525-7000.
Let's dive in. We're going to begin in Missouri today. Justine, how can I help?
Justine: Yes, um, thanks for taking my call. Um, a little bit of history or background. I retired from the federal government 2019, 30 years, fully vested. Um, I had the luxury of retiring early, um, but my question revolves around this Medicare issue, insurance. So, when I retired, I kept the medical insurance that they offered. And, um, I'm also married, so my husband has always—I've been the primary insurance carrier, and he, of course, is on my policy. But now that I'm 65 this year, um, and I've probably have missed my six-month window, but I—I figured I'd better find out. I've been to a couple of those dinner seminars, and they seem to think that I'm okay, but they really couldn't help me. So, I just want to make sure that I have creditable insurance—that's the key word, I think. Um, do I need to look at Medicare? Do I even need to worry about that right now? Should I just keep the insurance? And if—if I do need to start looking, where would I begin?
Rob West: Mm, yeah. Well, uh, this is really helpful background, and I can understand the question here. So, the Federal Employees Health Benefits retiree coverage is creditable for prescription drug coverage for Medicare Part D. So, you generally don't need a separate Part D plan, and therefore you can delay Part D without a late enrollment penalty while you maintain the Federal Employees Health Benefits.
But the retiree coverage doesn't generally let you postpone Part B indefinitely without a penalty. Now, the Part B Special Enrollment Period is tied to health insurance based on current employment, not merely having retiree coverage. So, the Social Security Administration specifically says that retiree health coverage doesn't count as current employment coverage for this purpose.
Now, keep in mind, if you recently turned 65, you may not have missed your Initial Enrollment Period yet. It runs for seven months: three months before you turn 65, your birthday month, and then three months after.
So, for a retired federal employee, a common arrangement is Medicare Part A and B together with the Federal Employees Health Benefits. Medicare becomes primary, the FEHB becomes secondary, and, you know, it—it continues whether or not an annuitant enrolls in Medicare, and most people should take that premium-free Part A. But premium B—or, excuse me, Part B requires a premium, so whether you're adding it, you know, is worthwhile depends heavily on the particular plan you have, its cost-sharing with Medicare, your health needs, and the premium itself.
Let me stop there, though, before we get to where to go to shop it around. Does that all make sense?
Justine: Pretty much. I—I—that it's a new thought now that I do need to pay attention and start doing something. I turned 65 at the end of May. So, June, July, August, so I think I'm right there.
Rob West: Yeah. So, you may be a little beyond the window, but, you know, you can jump in and—and go ahead and take care of this, because it is something you certainly don't want to, um, you know, you don't have to enroll in it just because you're a retired federal employee, but, you know, ultimately at the end of the day, um, you know, they can—ultimately, whether you're eligible, the FEHB continues whether or not you enroll in Medicare. Part B has that premium, so I think we just need to look at your specific situation.
Let's do this: I'm up against a break. I'd love to talk more about your situation here off the air, so hang on the line, and we'll unpack it a bit further in terms of your next steps.
We'll be right back on Faith & Finance. Stay with us.
SEGMENT 4
Rob West: Great to have you with us today on Faith & Finance here on American Family Radio. Lines are open. We're taking your phone calls today: 800-525-7000. That's 800-525-7000. You can call right now. Let's go out to Ohio. Kathy, how can I help you?
Kathy: Uh yeah, I've got a 403(b) that I'm trying to figure out what to do with, because I've had friends tell me I should get it out and invest it in a Roth IRA. I had a long three years. My mom was in a bad accident and lost her leg at age 80, and then my husband passed away in January. So I got a lot of people trying to help me, but I'm not sure what I should be doing. I'm a teacher. I'm thinking about resigning this year. I will be 62 when I do that. I don't want to retire because I lose so much in my state teachers retirement if I do that, so I just wanted to wait until 65 to retire. So I'm just trying to figure out options of what I should do with the 403(b). Do I leave it? Do I move it? I'm not sure.
Rob West: Yeah. Well, it sounds like, I mean, you love what you do, and you have the benefit, if you wait another three years at a minimum, of really shoring up that retirement plan. Is that right?
Kathy: Yeah. And I just—I need to resign because I'm just—I'm tired. I'm driving back and forth to West Virginia a lot to help my mom and dad, and after losing my husband, it's just—it's been a lot.
Rob West: Yes, yes. I'm so sorry.
Kathy: And we don't have debt. We planned well. We do have a property, but I don't want to live there by myself, so I'll probably just stay with my parents. So...
Rob West: Yeah. Well, what do you have in that 403(b) roughly?
Kathy: It's real close to $400,000.
Rob West: Okay. And what will be your—if you do retire, what would be your income sources at that point?
Kathy: If I retire—if I resign, I was thinking of resigning, and I was just going to go back home and work part-time, substitute teaching in my hometown.
Rob West: Okay. Yep. And would that—have you run your budget just to figure out what your monthly need is?
Kathy: Oh yeah. I'm good on that. Yeah, I would be fine.
Rob West: Okay. So you wouldn't start Social Security early then, correct?
Kathy: No, I have no desire to do that.
Rob West: Okay. So in your mind, you wouldn't have to start Social Security, you wouldn't touch the $400,000, and by cutting expenses and living with your parents and working part-time, that would be enough to cover your needs because you're debt-free, right?
Kathy: Correct.
Rob West: Okay, great. Yeah, so I think, I mean, obviously you're in great shape here, Kathy, and I love the idea that you would—you know, you're tired, to your point, you're doing a lot of driving, and so for you to simplify things, I think makes a lot of sense. And the fact that, you know, you are in a situation where you're living modestly, you don't have a lot of expenses, that obviously gives you quite a bit of flexibility.
So I would look, if you did end up resigning, at rolling out that 403(b) to a traditional IRA. That would not be a taxable event. I would look for a Certified Kingdom Advisor close to where you're going to be living. You could do that at findacka.com. And I'd connect with two or three, do an interview with each of them, decide which is the best fit.
And then at that point, that advisor would open the IRA for you, you'd roll the money in, and then you'd work together on your goals and objectives, your risk tolerance, any income that you would need from the portfolio—doesn't sound like you'd have any need there—and then that advisor would begin managing that money on your behalf.
And then it's there if you need it down the road—if you need long-term care, you need assisted living, you know, whatever you needed it for, it would just be there and continue to grow. You wouldn't have to take unnecessary risk, and you could just enjoy a simpler life at that point.
Now, prior to you taking full retirement age and after you resign, your income's going to drop. That is an ideal time to begin looking at some Roth conversions. You wouldn't want to do that in, you know, in huge chunks—like you certainly wouldn't want to convert $400,000 because you would create a single year where you had $400,000 in income and you'd pay a lot of taxes on that. But if you have the ability to start, you know, working with a CPA to determine how much you could convert in any given year that would, quote, "fill up the bracket"—that's kind of what they call the strategy, where, you know, let's say you're in the 12% bracket, how much more income could I take without, you know, going into the next bracket? And you could convert only that amount. And then you'd have to pay the tax, but then that portion that you convert to Roth would no longer be subject to required minimums down the road, and it would grow tax-free, which means if you leave it to heirs, they don't ever have to pay tax on it either.
So it can be a good strategy, especially pre-Social Security and after you resign, because you have such low income, it would be a really effective time to start converting some of that into a tax-free growth environment. Does that make sense?
Kathy: It makes perfect sense. Thank you.
Rob West: Yeah, you're welcome. So I think your next steps are: let's really pray through this and decide, is this the direction the Lord is leading? If so, and you decide to make this decision to resign, I think we want to get things shored up in terms of where you're going. You'd want to connect with a Certified Kingdom Advisor—again, that's findacka.com—and then you'd roll the 403(b) over, that money would be invested, and then you could work with a CPA to determine, "Should I begin converting portions of this, you know, each tax year, and if so, how much?" to kind of hit that ideal spot where we're not paying unnecessary tax, but we are getting it into this more favorable tax environment.
And then let's delay Social Security as long as you can. At full retirement age, 67, well, now all of a sudden you're even in a much stronger position. Maybe it's at that point you stop working part-time, or maybe you find something you love and you keep going, but now you've even got more income on top of it because Social Security's there and then the $400,000 is continuing to grow. So I think, you know, at that point you'd be in pretty good shape.
I want to send you a book, Kathy. A friend of ours, a friend of the ministry's, wrote a book called Wise Women Managing Money. And when her husband passed away, Bob Neff—Miriam Neff is her name—she started a ministry called Widow Connection to really serve and support widows who have found themselves all of a sudden managing the family finances. And this book, I think, will be an encouragement, but it'll also give you some practical wisdom around what does it look like to manage and steward money God's way, and I think you'll enjoy it. So you hang on the line and we'll get that right out to you, okay?
Kathy: Okay, thank you.
Rob West: All right, Lord bless you. If I can help further, don't hesitate to call back. 800-525-7000 is the number to call. We're going to be taking more of your questions just around the corner when we come back. So if you've got something on your mind today, now is the time to call 800-525-7000. We will get to as many calls as we can, just around the corner.
Hey, this is a good time for me to remind you that Faith & Finance is listener-supported, which just simply means if you love the program, maybe you've found something helpful, you want to help us equip more people to live faithfully as stewards of God's resources, head to faithfi.com/give. While you're there, you can make a one-time gift—that'd be a blessing—or perhaps consider becoming a FaithFi Partner. Partners receive our magazine, every new study and devotional, including our new field guide that's coming out in the next couple of weeks, How to Prepare the Next Steward. Also, our next devotional comes out at the first of the year by Randy Alcorn. We're so thrilled to be able to publish Randy's first-ever devotional. All of these resources and more, go to Partners. Go to faithfi.com/give to learn more. We'll be right back.
SEGMENT 5
Rob West: Great to have you with us today on Faith & Finance here on American Family Radio. I'm Rob West. We're taking your calls and questions today at 800-525-7000. Let's head to Alaska. Alyssa, how can I help?
Alyssa: Hi, yes sir. I just wanted to reach out and ask a few questions on how I can be good stewards of the income that we have coming in from our small business.
Rob West: Great. Yeah, what are your questions specifically, Alyssa?
Alyssa: Well, I've never really grew up with money, so I've never really been taught how to manage it. And with being a new Christian and I listen to y'all's show, I hear you give great advice and how to be just good stewards of it. And I'm looking to get some advice on that and, you know, obviously set up for retirement in the future, but also use it to help further God's kingdom.
Rob West: Boy, I love that. You know, that's exactly the way we need to be thinking about it because God cares about this aspect of our lives, and I don't think it's because he wants something from us. I think it's because he wants something for us. You know, we think about the privilege we have of managing what belongs to God, it's a high calling because everything is His. Psalm 24:1: "The earth is the Lord's and everything in it, and all who dwell therein." That means you and I are what the New Testament calls oikonomos, household managers of what God has entrusted to us.
And so we want to know God's heart, which is that money is a good gift, but ultimately it's either a treasure or a tool. If it's a treasure, we're trying to ascribe identity and purpose and significance to it. That's not it. That makes a created thing replace what is ultimately the role of the Creator. And so God is our ultimate treasure. Money, then, is a tool to be used as a blessing to serve and love others, to give generously, to advance the gospel, to love our neighbor, to enjoy.
You know, God is the author of creation and delight and wonder and beauty. And so, you know, taking money, a good gift, and using it appropriately to enjoy, you know, a great meal with friends and family, that's a beautiful picture of the purpose of money, in addition to providing for our families. So we do that in light of the principles that we see in God's Word.
And ultimately, those practical principles I think boil down to these five:
1. We spend less than we earn, and so we need to have a plan. We need to count the cost. We see that in Proverbs, among other places.
2. We need to avoid the use of debt because debt mortgages the future, and it says that when we enter into debt, then we're in a master-slave relationship. Doesn't mean that debt is a sin; it just means we need to be on our guard and be careful. There are rules around borrowing, including complete spousal unity and making sure we don't deny God an opportunity to work. We're not borrowing for things that are depreciating.
3. Thirdly, we need to have margin, meaning we need to have something left over because at the end of the month, that's the only way we're going to fund our longer-term goals is if we have margin or liquidity.
4. Fourth, we need to set long-term goals because the longer-term our perspective, the better our decision today.
5. And then fifth, we need to give generously.
So we live within our means, we avoid debt, we have some margin, we set long-term goals, and we give generously. And so when we understand God owns it all, and we understand properly our role, and that money can be dangerous, but it's also an opportunity as long as it doesn't become an idol in our lives—and then if we employ these wise principles that we see in God's Word—well, that serves as the foundation for the decisions we make.
I think the other key piece of this, Alyssa, is that what you will find is that your financial journey is one of the key ways God shapes your spiritual journey. You know, how tightly or how loosely you hold and manage money has a lot to do with your spiritual formation. The late Larry Burkett, who's a gentleman that kind of popularized a lot of the application of God's Word to modern personal finance in the '70s and '80s, Larry would often say that the way we handle money is one of the clearest indicators into what's happening in someone's life spiritually, because we work out our values and our priorities on a daily basis as we manage God's money.
But you guys are contributing to human flourishing through that small business as you provide goods and services that are good, and serve and love people, and as you care for your stakeholders—your suppliers, and your vendors, and your customers, and your employees. That's a part of God's virtuous cycle, His economy, that allows us to take what God has given us, to enjoy it appropriately, to save it thoughtfully, and then to give it away with intention.
So I think that's kind of a flyover of how to think about it. Now, within all of that is a lot of very specific things like: Do I form a corporation or an LLC? How do I manage my taxes? How do I handle the giving that comes from us personally versus our business? And all of those things. But I think we've got to start with the fundamentals. Is that helpful at all? I know I threw a lot at you there.
Alyssa: No, that was some really good advice. And that's the steps we're working on now. It is an LLC, and obviously taxes are right around the corner and stuff like that. But you really did give me some good insight and some good advice, and thank you for taking the time.
Rob West: Well, I'm happy to do it. You know, I think one of the biggest mistakes people make, Alyssa, when you have a small business is allowing the business and the personal finances to merge. And one of the ways we stay organized is we separate the business and the personal finances completely. And so it's really important for you to have dedicated business checking and credit accounts and bookkeeping software and knowing your monthly business revenue and expenses and profit and personal spending, and keeping those two things separate. Because if you don't, it's going to create challenges for you from a tax standpoint because you won't truly be able to deduct certain business expenses because they get mixed in with your personal finances.
So I think that's a really important piece of this. Another is to build cash reserves. So you need both the personal emergency fund of—you know, we generally say three to six months of essential expenses—and then the business should have its own operating reserve as well. You mentioned the taxes, but small business owners can get into trouble by treating all incoming cash as spendable income rather than setting aside money for federal and state taxes and determining whether quarterly estimated payments are required. And I think that's where working with a CPA or accountant can be really helpful.
So, you know, those are some of the basics I think that people often miss that would be really important for you all to give thought to. Finally, let me send you a book. It's called Master Your Money. It's by Ron Blue, who's written 20 books on biblical finance. He's one of my mentors, but this is the book that really shaped my thinking on faith and finance when I was coming out of college, and it's a classic. I think it'll set you and your husband up to really think about managing money God's way, and we'd love to send it to you as our gift, okay?
Alyssa: Yes, sir.
Rob West: All right. Hang on the line; we'll get it right out to you. Alyssa, thanks for your call today. Let's go to Alabama. Hi, James. Go ahead.
James: Hey, how you doing today?
Rob West: I'm great. How are you, sir?
James: I'm doing pretty good. I was listening to your program here shortly when the other lady called about the Medicare situation. I pretty much got that same problem, but maybe a little bit different from hers. I'm not planning on retiring. I will turn 65 next week, and I'm getting all these solicitors calling me up about signing up for Medicare and all that type stuff. I even called Social Security, and they were saying I need to sign up, now I'll probably be penalized. But I work for the railroad, and I finally called my employer's insurance, and they told me I had to talk to the Railroad Retirement Board. And the Railroad Retirement Board told me that if I was not planning on retiring and I was going to continue to work, that when I did put my notice in to retire, that they was going to automatically sign up me for the Medicare and all that. So I'm kind of confused because I don't want to be penalized in the future paying more expensive when I don't have to. So I was trying to get some insight, some of your wisdom and knowledge, since I was inspired by the school teacher lady called earlier, if you can help me out on that situation.
Rob West: Yeah, I'd be happy to. Thanks for all that background; that's really helpful. Yeah, so the rules are really important. My understanding is Medicare enrollment for railroad workers is handled through the Retirement Board rather than the normal Social Security process. So if you're still working full-time and your employer has group health coverage, then you generally don't have to take Medicare Part B at 65 like you would otherwise, because that coverage is based on your current employment.
And if they're telling you—the Railroad Retirement Board—that you can delay Part B while covered by the employer group health plan based on your current employment, and then you can use what's called the Special Enrollment Period when you retire, which lasts eight months after your employment or employer coverage ends, whichever happens first, and then that would avoid the late enrollment penalty.
Now, Part A is premium-free, and you may want to go ahead and enroll at 65 in Part A because there's no cost to that. Part B is what you generally would want to delay because you have qualifying employer group coverage. And just because you turn 65 doesn't mean you have to start retirement benefits. So I'd discuss the timing of all of that related to your retirement annuity directly with the Retirement Board rather than treating this like an ordinary Social Security claiming decision. But the bottom line is you don't have to take that Medicare Part B if you're actively working and covered by a qualifying plan. Does that make sense?
James: That makes a lot of sense. Now I have another question—
Rob West: Unfortunately, I'm out of time here, James, but let's see. We'd be happy to see if we can get you scheduled for tomorrow's broadcast, and we'd love to get you back on and see if we can tackle the second part of your question.
David in Virginia, let's do the same with you. I'd love to get your question on the air tomorrow. Just hang on the line; the team will see if we can get you scheduled for that.
Big thanks to my team today: Devin, and Michael, and Patty, and Pat, and Afton, and Taylor, and everybody here at Faith & Finance that makes this possible on a daily basis.
Again, if you want to support the ministry here at Faith & Finance, which is listener-supported, consider becoming a partner at $35 a month. We'll send you all of our resources. You'll find it really helpful as you lean into this idea that you and I are stewards of God's resources. Just go to faithfi.com/give. Come back and join us tomorrow. We'll see you then. Bye-bye.
Rob West: What will you leave to the next generation, and will they be prepared to steward it well? Hi, I'm Rob West. A faithful wealth transfer involves more than deciding who gets what. Scripture gives us a remarkable picture in David, who prepared Solomon not only with resources, but with wisdom, purpose, and responsibility. Today, Dr. Kelly Rush joins us to explore what David's example can teach families about passing wealth well. And then it's on to your calls at 800-525-7000. This is Faith and Finance on American Family Radio, biblical wisdom for your financial decisions.
Well, what a treat to have Dr. Kelly Rush back on the program. She's a professor of finance, financial planning program coordinator, and chair of business and technology at Mount Vernon Nazarene University. She also serves on the board of Kingdom Advisors, and Kelly has a real passion for helping students develop a biblical worldview of money. And today, she's bringing that perspective to an important topic: biblical wealth transfer. Kelly, great to have you.
Dr. Kelly Rush: Thank you, Rob. It's great to be back with you.
Rob West: Kelly, let's start by setting the stage. Why is David's transfer of wealth to Solomon such an important example for us to consider?
Dr. Kelly Rush: Oh, well, David was remarkable. We think of him as a shepherd, a musician, a warrior, a king, but he was a father. And his son Solomon ultimately became history's wealthiest king. But before that happened, David prepared his son for great riches and great responsibility. And that responsibility was to build a temple for the Lord in Jerusalem. But what makes me so excited about David's wealth transfer is that Kingdom Advisors' wealth transfer principles reflect David's actions.
Rob West: Yeah, they sure do. We often refer to this as something called the unity principle here at Kingdom Advisors. I'd love for you to unpack that, and how do we see David and Bathsheba model it in their planning for Solomon?
Dr. Kelly Rush: Yeah, well, the unity principle is an important concept that Kingdom Advisors apply when helping clients make wealth transfer decisions. And the principle is that husbands and wives need to be unified in their plans for transferring wealth. We see this powerful example in scripture with David and Bathsheba in 1 Kings chapter 1. So David's throne is under attack by one of his sons, Adonijah, and he attempted to make himself king. And it was Bathsheba who really stepped in and helped resolve that situation. She brought the matter to David's attention, and David was able to act on Bathsheba's reminder of what the Lord would have them to do. And ultimately, their unity in the decision that Solomon would reign on David's throne after David was what really resolved that attempted coup before it could gain momentum, and gives us a really beautiful picture of what it can look like when couples are on the same page in terms of wealth transfer decisions. And when husbands and wives are united in their plans today, it fosters the same kind of peace for families. The entire family can move forward with confidence—children, heirs, siblings, and their family members have greater clarity about what comes next when that couple is speaking with one voice.
Rob West: Yeah, that's really important. So it's this unity principle: husbands and wives need to be unified in their plans for transferring wealth. That leads us to the next principle we teach, and that is the wisdom principle—the idea that we shouldn't pass on wealth without also passing wisdom. Where do we see that in the story of David and Solomon?
Dr. Kelly Rush: Assets will inevitably be transferred because ultimately no one takes wealth with them when they die. Parents have this great privilege and great responsibility of preparing the next generation to steward wealth wisely. And yeah, you're right, we do see that with David's relationship with Solomon. David prayed that the Lord would give Solomon wisdom and understanding. And then David communicated that wisdom directly to his son. He told his son, "I want you to know the God of your father and serve him with a whole heart." So Solomon needed that spiritual counsel early on, but David didn't stop there. He also gave Solomon practical instruction for the work ahead. David had detailed plans for the temple, including the treasuries and the inner rooms, and he provided those plans to Solomon. We know those lessons took root because Solomon went on to build a magnificent temple, and he was also a man of wisdom. That principle remains just as important today. Parents should provide both biblical foundations and practical skills for transferring resources, just like David did with Solomon. Passing wealth to someone lacking wisdom could cause significant harm. But when wisdom comes first, the next generation is prepared to steward resources they receive. That is what it means to pass wisdom before passing wealth.
Rob West: Yeah, that's a big idea. Faithful wealth transfer is about more than passing assets. It's about preparing the next generation to receive the assets and steward it wisely. We're joined today by Dr. Kelly Rush. She's a professor of finance at Mount Vernon Nazarene University. And much more on biblical wealth transfer right after this. Stick around.
SEGMENT 2
Rob West: One of the key decisions you'll make as a steward is selecting and preparing the next steward. And we're talking about principles from God's Word that really can inform that process. Dr. Kelly Rush is with us today. She's a good friend, she's a board member of Kingdom Advisors, she's also professor of finance and financial planning program coordinator at Mount Vernon Nazarene University. And we're talking about David and Solomon, and how we can glean wisdom from God's Word for the wealth transfer process. Before the break, we talked about the unity principle, that husbands and wives need to be unified in their plans for transferring wealth. We also talked about the wisdom principle, that you must transfer wisdom before wealth. Now, Kelly, before transferring wealth, David, of course, considered Solomon's readiness to receive it. So, what can families learn about avoiding the danger of giving too much too soon?
Dr. Kelly Rush: Mm, I love that David did this. So, David knew of his son Solomon that he was young and inexperienced. We know that from 1 Chronicles 22. And so, it was David's responsibility to get him ready, and that preparation unfolded in stages. He imparted wisdom first, and then he imparted practical plans and guidance, and then at just the right time, those resources were transferred to Solomon. And families really have the opportunity to do the same thing today. Imparting wisdom to young children, and practical skills as they get older and older, and then eventually they'll be ready for those resources at just the right time. Today, there are many ways families can avoid too much too soon. It can begin early by giving children incremental responsibility as they mature. For example, parents can use joint accounts with minors or young adults to help them learn how to manage resources. As those heirs grow older and the value and impact of the wealth increases, trustee oversight can provide a layer of both training and protection for the family.
Rob West: Yeah, no doubt. Let's dig into that a little deeper. Kelly, how can parents wisely determine both the right amount and the right timing when transferring wealth to the next generation?
Dr. Kelly Rush: Well, there really is no one-size-fits-all answer to this. Before making significant gifts, parents should consider the spiritual, emotional, financial maturity of the person receiving the wealth. It's not simply about age. And where there are gaps in maturity or experience, those are really opportunities for further training. That's what we see David doing with Solomon. And today, it really looks like open communication. Heirs shouldn't be surprised by wealth transfer plans or even learn about wealth transfer plans after a parent passes away. Instead, parents should communicate both their plans and their expectations well in advance. Open communication then gives the heir an opportunity to ask questions. They can seek counsel from their parents, and they can speak into the timing of when they believe they are ready. Families should recognize that wealth transfer plans are not static. They should adapt as the next generation matures, as circumstances change, and as new opportunities for stewardship emerge.
Rob West: Yeah, that's exactly right. And this is, by the way, folks, a key place that a Certified Kingdom Advisor can enter this conversation, because they can actually not only help you think about applying these principles in your own wealth transfer process, they can help with that family meeting and how you communicate that down through the generations. Just go to findacka.com to connect with a Certified Kingdom Advisor in your area. Now, Kelly, let me talk about the next principle, and that is the treasure principle. It's the idea that we can't take our wealth with us, but we can use it now for purposes that outlast us. Where does that show up in David's story?
Dr. Kelly Rush: Well, the treasure principle is really about recognizing that our wealth has a purpose beyond our own lifetime. We can't take earthly treasures with us, but we can use them in ways that create lasting kingdom impact. David's example here is remarkable, too. The value of the treasures described in 1 Chronicles 22 and 29 would be worth tens of billions of dollars today. It was vast wealth because David dedicated resources from both Israel's national treasury and his own personal wealth toward the building of the temple. David knew God had not called him to build the temple; Solomon would do that. But David had the privilege of preparing the resources. And David wasn't alive for the groundbreaking, but he was highly involved in the planning and saving ahead of time.
Rob West: Yeah, that's an important detail. Now, for families today, though, what are some practical ways, Kelly, to use wealth now for purposes that will outlast us?
Dr. Kelly Rush: Well, there are several ways families can send it ahead. First, prioritizing generosity. Generosity is a muscle we build over time. Families can fund ministries or missions while you're here to see the fruit, and it will be easy to build generosity into your estate plan. Second, families can create a mission statement that helps direct future inheritances toward purposes that reflect your family's values and internal priorities. Families can consider tools such as testamentary or charitable trusts that can help guide heirs toward stewardship rather than simply consumption. Finally, involving heirs in giving decisions early. Shared giving experiences can strengthen relationships while passing along both values and a vision for generosity. The goal is to make generosity a part of the family culture before wealth is ever transferred.
Rob West: Yeah, that's a really big idea, to build that in and practice it ahead of time. Even get your kids involved in the giving. Perhaps that's where a donor-advised fund can come in. And this can work at all ages as well. You can take your young children and get them involved in the giving, and perhaps even your adult children as well. Kelly, what's the key takeaway you'd want to leave families with who hope to finish well and steward what they pass on faithfully?
Dr. Kelly Rush: I would say, maintain an eternal perspective. Ron Blue taught us that the longer your perspective, the better your decision is today. We pass wisdom to our children today because we want them to steward well in the future. We communicate our wealth transfer plans today because we want heirs to be prepared. And we build generosity into our estate plans today because we want to send resources ahead for the kingdom. Just like David did, we can prepare the next generation and align resources with God's purposes beyond our lifetime.
Rob West: Oh, this is so good. Kelly, I want to finish with your own personal experience in this. Now, I know your kids are still at home, but how can we use financial capital to really grow the spiritual capital, and perhaps even through experiences or otherwise?
Dr. Kelly Rush: Yeah, for our family, we have used financial capital for things like family mission trips, and we started early, taking our kids as a family, traveling together, teaching them to share the gospel with all people. And so, that's been something that's been a blessing for my kids as they've grown up, and we want them to then continue that with the next generation because they've been taught how to use financial resources to build spiritual capital in the next generation.
Rob West: Oh, so good. Well, folks, this is such a key idea that we want to pass wisdom before wealth, that we can look to God's Word for this roadmap, that we need to be unified with our spouse, that we need to be intentional because we can't take it with us, but we can send it on ahead, and that we always want to pass wisdom before wealth. Some really key ideas when it comes to thinking about preparing the heirs for the assets and preparing the next steward. Kelly, thanks for your time today.
Dr. Kelly Rush: Thanks, Rob. My pleasure.
Rob West: That's Dr. Kelly Rush with Mount Vernon Nazarene University. And before we head to the break, I want to let you know that our newest FaithFi Field Guide, How Do I Prepare the Next Steward?, launches in just a few weeks. It's designed to help families think beyond simply passing on assets, and consider how to prepare the next generation with wisdom and values and practical skills to steward wealth faithfully. You can pre-order your copy or place a bulk order before it's released at faithfi.com/shop. That's faithfi.com/shop. We'll take a quick break and then come back with much more. Here's our goal: to be an encouragement to you, to point you back to God's Word, and help you live as a wise and faithful steward. This is Faith & Finance on American Family Radio. Thanks for being with us. More to come right after this.
SEGMENT 3
Rob West: Thanks for joining us today on Faith & Finance. It's here on American Family Radio. I'm Rob West. We're going to take your calls here in just a moment, so now is the time to call: 800-525-7000. Again, that number: 800-525-7000. The calls are coming in. We do have some lines open, though, at the moment. So, as you think about managing God's money, and as you spend, and save, and give, we'd love to weigh in on whatever those questions are you're wrestling with today in light of biblical wisdom.
And it all starts with this fundamental idea that God owns everything, you and I are stewards. Well, then we logically get to the question, "Well, what is the purpose of wealth? What is it for?"
And I think the clearest answer to that perhaps is in Ephesians 4:28: "Let the thief steal no longer, let him work with his hands doing honest labor so that..." You know, a lot of people might think "so that" the answer might be you can provide for your family, just based on our typical teaching that we hear in even Christian circles. And that's not what it says. It says, "so that he can share with someone in need."
So, perhaps the clearest answer to that question is to give, that God entrusts to us what we're to allow to pass through us to meet the needs of others. Now, keep in mind that doesn't mean we can't enjoy it, it doesn't mean that we shouldn't provide. We should do all of those things. But I think we need to understand both the danger and the opportunity related to money, because money is so closely connected to our hearts.
You know, keep in mind our circumstances can shape our hearts, but we need to be on our guard. Now, scripture doesn't condemn wealth; in fact, we see it used for kingdom purposes and human flourishing in so many areas, but it can become an idol. You know, the rich fool, his problem was that his whole world began and ended with himself. He did not look beyond his own situation, first of all, to think about how did I receive this, to acknowledge the Giver, and to be seeing it as a conduit for blessing to others. Everything was about his grain, and his barns, and his harvest, and his life. That's where we need to be careful.
So, ultimately, it's about stewardship. We receive with gratitude, we enjoy appropriately, we invest thoughtfully in a way that aligns with our values, we provide responsibly, we love our neighbor, and at the end of the day, we glorify God. And that's what we want to help you do here on this program, day in and day out.
So, if you've got a question today, something you're wrestling with in your financial life, call right now. We'd love to tackle it with you at 800-525-7000.
Let's dive in. We're going to begin in Missouri today. Justine, how can I help?
Justine: Yes, um, thanks for taking my call. Um, a little bit of history or background. I retired from the federal government 2019, 30 years, fully vested. Um, I had the luxury of retiring early, um, but my question revolves around this Medicare issue, insurance. So, when I retired, I kept the medical insurance that they offered. And, um, I'm also married, so my husband has always—I've been the primary insurance carrier, and he, of course, is on my policy. But now that I'm 65 this year, um, and I've probably have missed my six-month window, but I—I figured I'd better find out. I've been to a couple of those dinner seminars, and they seem to think that I'm okay, but they really couldn't help me. So, I just want to make sure that I have creditable insurance—that's the key word, I think. Um, do I need to look at Medicare? Do I even need to worry about that right now? Should I just keep the insurance? And if—if I do need to start looking, where would I begin?
Rob West: Mm, yeah. Well, uh, this is really helpful background, and I can understand the question here. So, the Federal Employees Health Benefits retiree coverage is creditable for prescription drug coverage for Medicare Part D. So, you generally don't need a separate Part D plan, and therefore you can delay Part D without a late enrollment penalty while you maintain the Federal Employees Health Benefits.
But the retiree coverage doesn't generally let you postpone Part B indefinitely without a penalty. Now, the Part B Special Enrollment Period is tied to health insurance based on current employment, not merely having retiree coverage. So, the Social Security Administration specifically says that retiree health coverage doesn't count as current employment coverage for this purpose.
Now, keep in mind, if you recently turned 65, you may not have missed your Initial Enrollment Period yet. It runs for seven months: three months before you turn 65, your birthday month, and then three months after.
So, for a retired federal employee, a common arrangement is Medicare Part A and B together with the Federal Employees Health Benefits. Medicare becomes primary, the FEHB becomes secondary, and, you know, it—it continues whether or not an annuitant enrolls in Medicare, and most people should take that premium-free Part A. But premium B—or, excuse me, Part B requires a premium, so whether you're adding it, you know, is worthwhile depends heavily on the particular plan you have, its cost-sharing with Medicare, your health needs, and the premium itself.
Let me stop there, though, before we get to where to go to shop it around. Does that all make sense?
Justine: Pretty much. I—I—that it's a new thought now that I do need to pay attention and start doing something. I turned 65 at the end of May. So, June, July, August, so I think I'm right there.
Rob West: Yeah. So, you may be a little beyond the window, but, you know, you can jump in and—and go ahead and take care of this, because it is something you certainly don't want to, um, you know, you don't have to enroll in it just because you're a retired federal employee, but, you know, ultimately at the end of the day, um, you know, they can—ultimately, whether you're eligible, the FEHB continues whether or not you enroll in Medicare. Part B has that premium, so I think we just need to look at your specific situation.
Let's do this: I'm up against a break. I'd love to talk more about your situation here off the air, so hang on the line, and we'll unpack it a bit further in terms of your next steps.
We'll be right back on Faith & Finance. Stay with us.
SEGMENT 4
Rob West: Great to have you with us today on Faith & Finance here on American Family Radio. Lines are open. We're taking your phone calls today: 800-525-7000. That's 800-525-7000. You can call right now. Let's go out to Ohio. Kathy, how can I help you?
Kathy: Uh yeah, I've got a 403(b) that I'm trying to figure out what to do with, because I've had friends tell me I should get it out and invest it in a Roth IRA. I had a long three years. My mom was in a bad accident and lost her leg at age 80, and then my husband passed away in January. So I got a lot of people trying to help me, but I'm not sure what I should be doing. I'm a teacher. I'm thinking about resigning this year. I will be 62 when I do that. I don't want to retire because I lose so much in my state teachers retirement if I do that, so I just wanted to wait until 65 to retire. So I'm just trying to figure out options of what I should do with the 403(b). Do I leave it? Do I move it? I'm not sure.
Rob West: Yeah. Well, it sounds like, I mean, you love what you do, and you have the benefit, if you wait another three years at a minimum, of really shoring up that retirement plan. Is that right?
Kathy: Yeah. And I just—I need to resign because I'm just—I'm tired. I'm driving back and forth to West Virginia a lot to help my mom and dad, and after losing my husband, it's just—it's been a lot.
Rob West: Yes, yes. I'm so sorry.
Kathy: And we don't have debt. We planned well. We do have a property, but I don't want to live there by myself, so I'll probably just stay with my parents. So...
Rob West: Yeah. Well, what do you have in that 403(b) roughly?
Kathy: It's real close to $400,000.
Rob West: Okay. And what will be your—if you do retire, what would be your income sources at that point?
Kathy: If I retire—if I resign, I was thinking of resigning, and I was just going to go back home and work part-time, substitute teaching in my hometown.
Rob West: Okay. Yep. And would that—have you run your budget just to figure out what your monthly need is?
Kathy: Oh yeah. I'm good on that. Yeah, I would be fine.
Rob West: Okay. So you wouldn't start Social Security early then, correct?
Kathy: No, I have no desire to do that.
Rob West: Okay. So in your mind, you wouldn't have to start Social Security, you wouldn't touch the $400,000, and by cutting expenses and living with your parents and working part-time, that would be enough to cover your needs because you're debt-free, right?
Kathy: Correct.
Rob West: Okay, great. Yeah, so I think, I mean, obviously you're in great shape here, Kathy, and I love the idea that you would—you know, you're tired, to your point, you're doing a lot of driving, and so for you to simplify things, I think makes a lot of sense. And the fact that, you know, you are in a situation where you're living modestly, you don't have a lot of expenses, that obviously gives you quite a bit of flexibility.
So I would look, if you did end up resigning, at rolling out that 403(b) to a traditional IRA. That would not be a taxable event. I would look for a Certified Kingdom Advisor close to where you're going to be living. You could do that at findacka.com. And I'd connect with two or three, do an interview with each of them, decide which is the best fit.
And then at that point, that advisor would open the IRA for you, you'd roll the money in, and then you'd work together on your goals and objectives, your risk tolerance, any income that you would need from the portfolio—doesn't sound like you'd have any need there—and then that advisor would begin managing that money on your behalf.
And then it's there if you need it down the road—if you need long-term care, you need assisted living, you know, whatever you needed it for, it would just be there and continue to grow. You wouldn't have to take unnecessary risk, and you could just enjoy a simpler life at that point.
Now, prior to you taking full retirement age and after you resign, your income's going to drop. That is an ideal time to begin looking at some Roth conversions. You wouldn't want to do that in, you know, in huge chunks—like you certainly wouldn't want to convert $400,000 because you would create a single year where you had $400,000 in income and you'd pay a lot of taxes on that. But if you have the ability to start, you know, working with a CPA to determine how much you could convert in any given year that would, quote, "fill up the bracket"—that's kind of what they call the strategy, where, you know, let's say you're in the 12% bracket, how much more income could I take without, you know, going into the next bracket? And you could convert only that amount. And then you'd have to pay the tax, but then that portion that you convert to Roth would no longer be subject to required minimums down the road, and it would grow tax-free, which means if you leave it to heirs, they don't ever have to pay tax on it either.
So it can be a good strategy, especially pre-Social Security and after you resign, because you have such low income, it would be a really effective time to start converting some of that into a tax-free growth environment. Does that make sense?
Kathy: It makes perfect sense. Thank you.
Rob West: Yeah, you're welcome. So I think your next steps are: let's really pray through this and decide, is this the direction the Lord is leading? If so, and you decide to make this decision to resign, I think we want to get things shored up in terms of where you're going. You'd want to connect with a Certified Kingdom Advisor—again, that's findacka.com—and then you'd roll the 403(b) over, that money would be invested, and then you could work with a CPA to determine, "Should I begin converting portions of this, you know, each tax year, and if so, how much?" to kind of hit that ideal spot where we're not paying unnecessary tax, but we are getting it into this more favorable tax environment.
And then let's delay Social Security as long as you can. At full retirement age, 67, well, now all of a sudden you're even in a much stronger position. Maybe it's at that point you stop working part-time, or maybe you find something you love and you keep going, but now you've even got more income on top of it because Social Security's there and then the $400,000 is continuing to grow. So I think, you know, at that point you'd be in pretty good shape.
I want to send you a book, Kathy. A friend of ours, a friend of the ministry's, wrote a book called Wise Women Managing Money. And when her husband passed away, Bob Neff—Miriam Neff is her name—she started a ministry called Widow Connection to really serve and support widows who have found themselves all of a sudden managing the family finances. And this book, I think, will be an encouragement, but it'll also give you some practical wisdom around what does it look like to manage and steward money God's way, and I think you'll enjoy it. So you hang on the line and we'll get that right out to you, okay?
Kathy: Okay, thank you.
Rob West: All right, Lord bless you. If I can help further, don't hesitate to call back. 800-525-7000 is the number to call. We're going to be taking more of your questions just around the corner when we come back. So if you've got something on your mind today, now is the time to call 800-525-7000. We will get to as many calls as we can, just around the corner.
Hey, this is a good time for me to remind you that Faith & Finance is listener-supported, which just simply means if you love the program, maybe you've found something helpful, you want to help us equip more people to live faithfully as stewards of God's resources, head to faithfi.com/give. While you're there, you can make a one-time gift—that'd be a blessing—or perhaps consider becoming a FaithFi Partner. Partners receive our magazine, every new study and devotional, including our new field guide that's coming out in the next couple of weeks, How to Prepare the Next Steward. Also, our next devotional comes out at the first of the year by Randy Alcorn. We're so thrilled to be able to publish Randy's first-ever devotional. All of these resources and more, go to Partners. Go to faithfi.com/give to learn more. We'll be right back.
SEGMENT 5
Rob West: Great to have you with us today on Faith & Finance here on American Family Radio. I'm Rob West. We're taking your calls and questions today at 800-525-7000. Let's head to Alaska. Alyssa, how can I help?
Alyssa: Hi, yes sir. I just wanted to reach out and ask a few questions on how I can be good stewards of the income that we have coming in from our small business.
Rob West: Great. Yeah, what are your questions specifically, Alyssa?
Alyssa: Well, I've never really grew up with money, so I've never really been taught how to manage it. And with being a new Christian and I listen to y'all's show, I hear you give great advice and how to be just good stewards of it. And I'm looking to get some advice on that and, you know, obviously set up for retirement in the future, but also use it to help further God's kingdom.
Rob West: Boy, I love that. You know, that's exactly the way we need to be thinking about it because God cares about this aspect of our lives, and I don't think it's because he wants something from us. I think it's because he wants something for us. You know, we think about the privilege we have of managing what belongs to God, it's a high calling because everything is His. Psalm 24:1: "The earth is the Lord's and everything in it, and all who dwell therein." That means you and I are what the New Testament calls oikonomos, household managers of what God has entrusted to us.
And so we want to know God's heart, which is that money is a good gift, but ultimately it's either a treasure or a tool. If it's a treasure, we're trying to ascribe identity and purpose and significance to it. That's not it. That makes a created thing replace what is ultimately the role of the Creator. And so God is our ultimate treasure. Money, then, is a tool to be used as a blessing to serve and love others, to give generously, to advance the gospel, to love our neighbor, to enjoy.
You know, God is the author of creation and delight and wonder and beauty. And so, you know, taking money, a good gift, and using it appropriately to enjoy, you know, a great meal with friends and family, that's a beautiful picture of the purpose of money, in addition to providing for our families. So we do that in light of the principles that we see in God's Word.
And ultimately, those practical principles I think boil down to these five:
1. We spend less than we earn, and so we need to have a plan. We need to count the cost. We see that in Proverbs, among other places.
2. We need to avoid the use of debt because debt mortgages the future, and it says that when we enter into debt, then we're in a master-slave relationship. Doesn't mean that debt is a sin; it just means we need to be on our guard and be careful. There are rules around borrowing, including complete spousal unity and making sure we don't deny God an opportunity to work. We're not borrowing for things that are depreciating.
3. Thirdly, we need to have margin, meaning we need to have something left over because at the end of the month, that's the only way we're going to fund our longer-term goals is if we have margin or liquidity.
4. Fourth, we need to set long-term goals because the longer-term our perspective, the better our decision today.
5. And then fifth, we need to give generously.
So we live within our means, we avoid debt, we have some margin, we set long-term goals, and we give generously. And so when we understand God owns it all, and we understand properly our role, and that money can be dangerous, but it's also an opportunity as long as it doesn't become an idol in our lives—and then if we employ these wise principles that we see in God's Word—well, that serves as the foundation for the decisions we make.
I think the other key piece of this, Alyssa, is that what you will find is that your financial journey is one of the key ways God shapes your spiritual journey. You know, how tightly or how loosely you hold and manage money has a lot to do with your spiritual formation. The late Larry Burkett, who's a gentleman that kind of popularized a lot of the application of God's Word to modern personal finance in the '70s and '80s, Larry would often say that the way we handle money is one of the clearest indicators into what's happening in someone's life spiritually, because we work out our values and our priorities on a daily basis as we manage God's money.
But you guys are contributing to human flourishing through that small business as you provide goods and services that are good, and serve and love people, and as you care for your stakeholders—your suppliers, and your vendors, and your customers, and your employees. That's a part of God's virtuous cycle, His economy, that allows us to take what God has given us, to enjoy it appropriately, to save it thoughtfully, and then to give it away with intention.
So I think that's kind of a flyover of how to think about it. Now, within all of that is a lot of very specific things like: Do I form a corporation or an LLC? How do I manage my taxes? How do I handle the giving that comes from us personally versus our business? And all of those things. But I think we've got to start with the fundamentals. Is that helpful at all? I know I threw a lot at you there.
Alyssa: No, that was some really good advice. And that's the steps we're working on now. It is an LLC, and obviously taxes are right around the corner and stuff like that. But you really did give me some good insight and some good advice, and thank you for taking the time.
Rob West: Well, I'm happy to do it. You know, I think one of the biggest mistakes people make, Alyssa, when you have a small business is allowing the business and the personal finances to merge. And one of the ways we stay organized is we separate the business and the personal finances completely. And so it's really important for you to have dedicated business checking and credit accounts and bookkeeping software and knowing your monthly business revenue and expenses and profit and personal spending, and keeping those two things separate. Because if you don't, it's going to create challenges for you from a tax standpoint because you won't truly be able to deduct certain business expenses because they get mixed in with your personal finances.
So I think that's a really important piece of this. Another is to build cash reserves. So you need both the personal emergency fund of—you know, we generally say three to six months of essential expenses—and then the business should have its own operating reserve as well. You mentioned the taxes, but small business owners can get into trouble by treating all incoming cash as spendable income rather than setting aside money for federal and state taxes and determining whether quarterly estimated payments are required. And I think that's where working with a CPA or accountant can be really helpful.
So, you know, those are some of the basics I think that people often miss that would be really important for you all to give thought to. Finally, let me send you a book. It's called Master Your Money. It's by Ron Blue, who's written 20 books on biblical finance. He's one of my mentors, but this is the book that really shaped my thinking on faith and finance when I was coming out of college, and it's a classic. I think it'll set you and your husband up to really think about managing money God's way, and we'd love to send it to you as our gift, okay?
Alyssa: Yes, sir.
Rob West: All right. Hang on the line; we'll get it right out to you. Alyssa, thanks for your call today. Let's go to Alabama. Hi, James. Go ahead.
James: Hey, how you doing today?
Rob West: I'm great. How are you, sir?
James: I'm doing pretty good. I was listening to your program here shortly when the other lady called about the Medicare situation. I pretty much got that same problem, but maybe a little bit different from hers. I'm not planning on retiring. I will turn 65 next week, and I'm getting all these solicitors calling me up about signing up for Medicare and all that type stuff. I even called Social Security, and they were saying I need to sign up, now I'll probably be penalized. But I work for the railroad, and I finally called my employer's insurance, and they told me I had to talk to the Railroad Retirement Board. And the Railroad Retirement Board told me that if I was not planning on retiring and I was going to continue to work, that when I did put my notice in to retire, that they was going to automatically sign up me for the Medicare and all that. So I'm kind of confused because I don't want to be penalized in the future paying more expensive when I don't have to. So I was trying to get some insight, some of your wisdom and knowledge, since I was inspired by the school teacher lady called earlier, if you can help me out on that situation.
Rob West: Yeah, I'd be happy to. Thanks for all that background; that's really helpful. Yeah, so the rules are really important. My understanding is Medicare enrollment for railroad workers is handled through the Retirement Board rather than the normal Social Security process. So if you're still working full-time and your employer has group health coverage, then you generally don't have to take Medicare Part B at 65 like you would otherwise, because that coverage is based on your current employment.
And if they're telling you—the Railroad Retirement Board—that you can delay Part B while covered by the employer group health plan based on your current employment, and then you can use what's called the Special Enrollment Period when you retire, which lasts eight months after your employment or employer coverage ends, whichever happens first, and then that would avoid the late enrollment penalty.
Now, Part A is premium-free, and you may want to go ahead and enroll at 65 in Part A because there's no cost to that. Part B is what you generally would want to delay because you have qualifying employer group coverage. And just because you turn 65 doesn't mean you have to start retirement benefits. So I'd discuss the timing of all of that related to your retirement annuity directly with the Retirement Board rather than treating this like an ordinary Social Security claiming decision. But the bottom line is you don't have to take that Medicare Part B if you're actively working and covered by a qualifying plan. Does that make sense?
James: That makes a lot of sense. Now I have another question—
Rob West: Unfortunately, I'm out of time here, James, but let's see. We'd be happy to see if we can get you scheduled for tomorrow's broadcast, and we'd love to get you back on and see if we can tackle the second part of your question.
David in Virginia, let's do the same with you. I'd love to get your question on the air tomorrow. Just hang on the line; the team will see if we can get you scheduled for that.
Big thanks to my team today: Devin, and Michael, and Patty, and Pat, and Afton, and Taylor, and everybody here at Faith & Finance that makes this possible on a daily basis.
Again, if you want to support the ministry here at Faith & Finance, which is listener-supported, consider becoming a partner at $35 a month. We'll send you all of our resources. You'll find it really helpful as you lean into this idea that you and I are stewards of God's resources. Just go to faithfi.com/give. Come back and join us tomorrow. We'll see you then. Bye-bye.
What will you leave to the next generation, and will they be prepared to steward it well? A faithful wealth transfer involves more than deciding who gets what. In Scripture, David prepared Solomon not only with resources, but also with wisdom, purpose, and responsibility. On this Faith & Finance on AFR, Rob West and Dr. Kelly Rush explore David’s example about passing wealth well. Then, it’s on to calls.
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