Rob West: Artificial intelligence can help you build a budget, explain an investment, or compare financial options in seconds. But how much should you trust it with your money? Hi, I'm Rob West. AI is quickly becoming part of everyday life, including the way we manage our finances. And like any tool, it can be used wisely or unwisely. So, how should Christians think of AI and money? We'll talk about that today, and then it's on to your calls at 800-525-7000. That's 800-525-7000. This is Faith and Finance on American Family Radio. Biblical wisdom for your financial decisions.
When new technology arrives, we can be tempted toward one of two extremes. We can either embrace it without much thought, or we can become suspicious of it and want nothing to do with it. But as stewards, we should ask a better question: How can we use this tool wisely and faithfully?
AI can already be remarkably helpful with financial information. You can ask it to explain the difference between a Roth IRA and a traditional IRA, define a complicated financial term, suggest categories for a spending plan, compare debt payoff strategies, or help you prepare questions for a financial professional. Used that way, AI can be a valuable research assistant.
But there's an important difference between having information and exercising wisdom. Proverbs 14:15 says, "The simple believes everything, but the prudent gives thought to his steps." That's a helpful principle in an age of artificial intelligence. AI can gather, organize, summarize, and analyze information remarkably quickly. But having more information doesn't remove our responsibility to consider carefully what's true and how we should respond.
Biblical wisdom is more than knowing facts. It's applying truth faithfully before God. And that requires something no technology can provide: spiritual discernment. AI might help you calculate whether you can afford a larger home, but it can't determine whether buying it reflects wise stewardship or simply a desire for more. It can compare two investment strategies, but it can't decide what faithfulness should look like in your particular circumstances. It can calculate how much room you have to give, but it can't worship God through generosity.
That doesn't make AI bad. It simply means we need to keep the tool in its proper place. And a few practical guardrails can help us do that.
First, verify important financial information. AI can sound confident even when the information is incomplete, outdated, or even wrong. The more significant the decision, the more important it is to confirm what you're seeing with reliable sources or a qualified professional.
Second, protect your privacy. Be cautious about entering account numbers, Social Security numbers, passwords, tax documents, or other sensitive financial information into an AI system. And remember that criminals can use AI, too. Voice cloning, convincing fake images and videos, and personalized scams are becoming easier to create. If you receive an unexpected request involving money, even if it appears to come from someone you know, verify it through another trusted channel before acting.
But perhaps the most important guardrail is this: Don't surrender your responsibility to think. AI promises efficiency, and that can be useful. But efficiency isn't always the highest good. Some financial decisions require prayer, patience, conversation, wise counsel, and time. That's especially true when money intersects with marriage, family, generosity, fear, competing priorities, or the question of how much is enough. AI can help you reach a goal more efficiently, but you still have to decide whether it's the right goal.
A wise financial professional like a Certified Kingdom Advisor can understand family dynamics that don't fit neatly into a spreadsheet, ask questions you may not have considered, and walk with you through decisions over time. And a professional who understands biblical stewardship can help you think beyond simply maximizing wealth toward faithfully managing what God has entrusted to you. To start working with a CKA in your area, go to findacka.com.
And this is something worth thinking about carefully at FaithFi as well. In the future, the FaithFi app will include optional AI features designed to make certain parts of money management easier. For example, AI could streamline routine tasks or use your past spending patterns to suggest starting a budget. Of course, users will be able to choose whether to turn those features on or off. Either way, the principle remains the same: the technology serves the steward, not the other way around.
By the way, if you want to check out the FaithFi app, just go to faithfi.com/app. That's faithfi.com/app. Back with your questions after this. Stick around.
SEGMENT 2
Rob West: Thanks for joining us today on Faith and Finance here on American Family Radio. I'm Rob West. Well, we're going to be taking your calls and questions here in just a moment. That number: 800-525-7000. That's 800-525-7000. We would love to hear from you today, be able to think about how you're managing God's money and the questions you have in light of biblical wisdom. So with lines open at the moment, Pat standing by to take those calls, you can call 800-525-7000. Let's dive in, we're going to begin in Louisiana today. Mark, go right ahead, sir.
Mark: Yes. Hi, I've got a question. I've got a— my existing home that we— my primary home we live in, we owe about $60,000 balance on our mortgage, and it's— the interest rate— it was a 15-year loan, we owe four years on it, a little less than four, and the interest rate's 3.25. And we've since— just this year we bought a second home— a lake house, lake home, and we've got— we borrowed $140,000, we got a home equity loan with our— with our bank, and I've got a— what the banker was saying we need to do— and that— that home equity loan is at 5.6 or something, just give or take, right now for six— it's a— it's a six-month introductory thing. Then after six months, it's going to go up to 7 or possibly more with interest rates up. Right. And— and then, so I've— I'm selling a rental property, I'm going to have $60,000— I'm getting some extra money. So originally what I was planning on doing was taking that 60, and the banker said to pay the first loan off, and then the home equity loan would turn into our primary loan, first lien or something?
Rob West: Yeah, it would be in first position at that point, right.
Mark: Correct, first position. Then it would— she said they could have better rates or something. But I was wondering, should I take the 60 and put it on the— the higher interest instead of trying to knock that first one out, and losing that 3.25, you know, I don't know, I'm asking? And then, a second part, we've got about 1.1 in retirement IRAs, Simple IRA accounts, and is it beneficial to try to just— you know, the market's done great and stuff, and I, you know, I'm 64, I can draw— withdraw anything without penalty, just try to knock that mortgage out and then let the market recover, or I don't know?
Rob West: Yeah. Well, this one's pretty straightforward in my mind here, Mark. I'm not quite sure why she would have suggested that, because even though it's true that a second loan would be in first position, it would require you to refinance it in order to get anything more attractive, and it's just not available today because of what you noted, and that is interest rates have moved higher significantly. So that relatively quote "cheap" debt that you have at three and a quarter is not something you could replace today. And so, you know, I think it's pretty straightforward. In my mind, you would just keep making the scheduled payments on the first mortgage at three and a quarter. You'd put any extra funds you have, so long as you didn't deplete your emergency reserves and the needed liquidity, especially because you're in the rental business and you're going to need some money for the unexpected, not to mention your personal finances. But I'd put anything extra that you get as a windfall toward that 5.3% variable loan that's about to expire and jump up to your point. So, you know, that's a pretty clear plan of attack here. In terms of considering taking funds from the Simple IRA, I wouldn't do that. You know, you're working full-time, so you've already got— you're probably paying at a higher rate than you will be— excuse me, tax bracket— than you will be down the road when you're no longer working. And so now is not the time for you to create a taxable event by pulling out of that Simple IRA. You also have the opportunity cost of that money no longer growing on a compounded basis in a tax-deferred environment. And so just given the fact that, again, that interest rate is so low, and it's not going to be difficult for you to outpace that, especially given the tax favorability, I would probably leave that Simple IRA right where it is, let it keep growing. You're continuing to work. Let's get that second loan paid off as quickly as you can, the 140,000, and then let's just ride out that first mortgage until it's paid off. But even if that's much further down the road, I'm okay with that.
Mark: Yeah, yeah, it's just four years— as in like 46 months actually, so—
Rob West: Okay.
Mark: Okay, well, that's great. Like I say, I don't know why she led me that direction, you know, when I did it— several mortgage companies were talking, you know, "You need to refinance it, let's just re—" you know? Well, I hate to lose that, you know, not paying a whole lot of interest, you know? I paid off interest up front, now the sweet part I'm going to lose, you know?
Rob West: Yeah. I mean, the only reason you would ever refinance that loan is if you were a mortgage broker and you stood to make some money off of that transaction, because there is no benefit to you by getting rid of that 3.25% interest rate that is not available today. In fact, it would more than double if you were to try to refinance that loan. So we need to attack the variable loan soon to be 7% plus. That's going to be a guaranteed rate of return equal to that interest rate. That's a good thing that we get rid of that. I wouldn't be in a hurry to get rid of the first mortgage.
Mark: Good deal, you answered my question then, great. I listen to you regularly, so we love the program, AFR is great, trivia Friday, we love it, so—
Rob West: Well, I couldn't agree more. This is an incredible home for Faith and Finance. Love the team and the ministry here at AFA and AFR, and so thankful to have you as a regular listener. Mark, stay on the line, we'll get your information. I'd love to send you a copy of the latest issue of Faithful Steward, our magazine, that I think will be an encouragement to you, just a small way to say thanks for being a part of the program today. Lord bless you, sir. 800-525-7000 is the number to call. Let's go to Iowa, Katrina, go ahead.
Katrina: Hello, I had a question about our teenagers and how to help them establish a line of credit.
Rob West: Yeah. Well, I love this question because it is wise to begin thinking about building credit slowly while also pointing out the dangers of debt and the fact that borrowing is not a sin, but the Bible discourages it, and certainly I think there's plenty of warnings there. So what are the options for a child who's under 18? Well, you could consider adding them as an authorized user on a well-managed credit card. Well-managed meaning, you know, where you ideally would pay it off every month, where the balance never gets above 30% of the limit, where you've got a long history and every payment is made on time. You will want to confirm before you do that, if you consider that option, that the issuer reports authorized user activity to the credit bureaus. Not every creditor will pass the credit history along to the authorized user, but if they do, and many do, that would allow your good credit history to start populating to your child's credit report, which is going to immediately begin to establish really positive history. The other option is you could consider, in a training environment where you're walking alongside them, getting them their own secured credit card. Discover, Capital One are two that have really good secured cards. Essentially, you'd have the child, perhaps through a part-time job, save up $200 or $300 to put that on deposit. They then issue the credit against it, so there's no risk of them charging beyond what's on deposit with the bank, and then let them use that for all safe budgeted expenses, expenses that they've taken on at your direction, maybe gas for the car or whatever that might be, pay it in full every time, and use that to establish credit. Stay on the line, we'll be right back.
SEGMENT 3
Rob West: Thanks for joining us today on Faith and Finance here on American Family Radio. I'm Rob West. Well, we're taking your calls and questions today. We've got some lines open. It's time for you to call right now: 800-525-7000. That's 800-525-7000.
Before the break, we were talking to Katrina in Iowa. She was wondering about the best ways to get her kids established with credit. You know, I mentioned a couple of options. One is an authorized user. You've got to be careful; you've got to make sure it's good history that you're passing on, and you've got to keep it that way because if you had a missed payment or you went above a 30% threshold, now all of a sudden, we're potentially sharing negative information. That's obviously not helpful. The second is a secured credit card, but I would journey alongside that teen to make sure they understand what you're doing and why, the dangers of debt, the importance of establishing a spending plan, not to mention just the biblical worldview of money. Discover and Capital One both have great options for secured credit cards.
Third, I would just say go ahead and pull a copy of each of their credit files with TransUnion, Equifax, and Experian just to make sure there's not any inaccurate information on there. It does happen, and so it is important to go ahead, even as teens, to go ahead and check their credit periodically. So, I think those are really maybe the key ideas, but give me your thoughts on all that, and I'd love any follow-up questions.
Katrina: Yeah, well, we have two teenagers. The 17-year-old is going to be 18 in just a couple of months, so in some ways, it's maybe a moot point, and just when he turns 18, we could help him establish his own credit card. I'm assuming he can do that at age 18. We also have a 16-year-old where we hadn't thought about this until we tried to transition them to their own cell phone so they could begin taking over those payments themselves. And the cell phones often times have these extended three-year contract deals, and you get a free phone, but you have to have good credit. And neither of them have ever had a credit card; they have bank accounts, they have a debit card, they have cars that are paid in cash, so they really don't have, from my understanding, a credit history. And honestly, I don't know all the things that go into a credit report, so maybe checking out their credit reports is a good thought. But yeah, any comments about those things?
Rob West: Yeah, great. So, the place to get those credit files is annualcreditreport.com. That's the only website that's government-sponsored that allows you to access those credit reports free. You won't get the score, although so many people offer that these days—Credit Karma and a few others—but annualcreditreport.com is the place to go to pull those three credit files. And that would just be interesting for you to see what's on it. It'd be a good teaching opportunity for you to walk through it with the kids. There probably won't be much there.
For the 16-year-old, the easiest starting point, other than maybe a debit card to get them to start understanding how to handle their own money and give, save, and spend—and really kind of teaching them to handle that wisely—you know, the authorized user is probably the best option where, again, they would inherit your credit history. But just make sure it's the right account with a long, positive payment history, a low balance, and it's always paid on time.
For the soon-to-be 18-year-old, yes, I would look to help them establish credit in their own name. I would consider, again, a no-annual-fee student card or a secured credit card, and then maybe they put something small on it every month like gas or a monthly subscription, and then set it to automatically pay in full the statement balance every month. And that's going to begin to establish some positive history there. So, I think both of those could work really well, and you'll be surprised at how quickly they will be offered credit just because these companies are wanting to establish a relationship, and they are willing to play the long game there.
Katrina: Yes. Okay, well, that's helpful information, and thank you for that insight.
Rob West: Happy to do it. Let me send you two resources, Katrina. It's called Open Hands Finance, and it's a really powerful workbook. There's a podcast that goes along with it. They actually not only will learn some of the biblical principles of money management in the area of debt, spending, and investing, but they will also work through some case studies where they actually have to make decisions based on some of the scenarios that are presented. I think this could be a great resource for both of your soon-to-be adult children, and we'll send two copies out to you. Again, it's called Open Hands Finance, and it's our gift to you, okay?
Katrina: All right, thank you very much.
Rob West: You're welcome, Katrina. Call anytime.
800-525-7000 is the number to call. We do have some lines open today, so if you have a question related to preparing the next steward—perhaps for you, it's investing for the future, or maybe you have some debt that's just been lingering and you're wondering the best way to get that paid off—we'd love to help. Call right now; lines are open: 800-525-7000.
Let's go to Ohio. Glenna, thanks for calling. Go ahead.
Glenna: Hi, Rob. I just want to thank you for helping all of us folks out here stay in line with God's will for our finances. You are such a bonus blessing for us.
Rob West: Oh, that's so sweet. Thank you for saying that. It means a lot; I'm so delighted to be able to help.
Glenna: Well, I'll tell you what, when I'm calling today, I'm not even sure why I'm calling you. I am a widow, I'm 76, and I live by myself in a condo. So I have, when my finances go out each month, first it's the church, then I have to pay my mortgage on the condo, I have to pay my condo fee to live here, and then my car. Those are my expenses that go out other than just living, gifting, and that kind of thing.
The tax people say I bring in about $74,000 a year from my Social Security, my STRS retirement, and some VA money that I get as well. So, here's my thing. I have a wonderful family; I am so blessed. And I love my family. My pastor says that's one of my problems: I love too deeply those that I love. That can be a problem, but it seems to be. And I'm looking at this with Proverbs 3:9 in mind: How do I honor God with what He has given me financially, okay? I have a son, I have two grandchildren, and I have a cousin that constantly need financial help with this thing or the other thing.
Rob West: Let's do this. That's really helpful background. I want to hear the rest of the story and give you my thoughts. I'm up against this break, but we're going to come right back to you, Glenna, right after this. So, you stay right there; we'll be right back.
SEGMENT 4
Rob West: Thanks for joining us today on Faith and Finance here on American Family Radio. I'm Rob West. We do have some lines open today. If you have a question, call right now: 800-525-7000. That's 800-525-7000. We would love to take those questions today and help you apply God's wisdom to your financial decisions.
Well, before the break, we were talking to Glenna in Ohio. She's 76, working part-time. She is receiving retirement income from the VA, another retirement plan, as well as Social Security, bringing in about $76,000 a year. She's wondering how much she really needs for retirement, and then she has a lot of people pulling on her for financial needs. Her generous heart is wanting to share with everyone who asks, but she's also wanting to make sure that she's a wise steward at the same time. And I think that's really the key idea here. I do have some thoughts that I want to share with you, but let me just let you finish the story, Glenna. Was there anything else you wanted to add?
Glenna: Not really, Rob. I guess—I guess I don't want to be an enabler in the situations. And yet, my heart wants to help, and so you give and you give and you give, and the promise is always, "Well, we're going to pay you back," but it never gets paid back, and you know that when you give it. You know? But that—but that's what God says. But like you said, that there here is that—that is the key question: What is—what is God-honoring in this? And—and how do I protect myself for my future, you know, so that I have enough that I'm not going to be destitute and have to come back on them and say, "Okay, Mommy's moving in," you know?
Rob West: Exactly. And I—I think that's really the key, and perhaps that's the starting point, is to understand, you know, what you need for your own lifestyle that you believe the Lord has called you to. It sounds like you're living modestly. But at the same time, we not only have what you need to cover on a monthly basis today, but we also have, you know, what might come down the road. Might you need long-term care at some point, which, you know, could be quite expensive, and where would that come from?
And so, you know, we want you to be wise. We want you to be able to listen to the leading of the Lord, follow the Holy Spirit in your giving. I think that honors the Lord. But we also need to be thoughtful about how we do that, because honoring God with your money means recognizing that everything you have belongs to Him, and then managing it in light of that truth, and that includes our generosity. But it also includes providing for legitimate future needs. And so it's not selfish for you to save for retirement. Scripture commends wise preparation, among other places. First Timothy 5, it reminds us of our responsibility to provide.
Remember, giving isn't the first or the only, I'll say, financial priority in Scripture. It also encourages saving and diversification and honoring our financial obligations. So, I think the starting point is really to say, "Okay, what annual retirement income or spending do I have?" So, I've got to look at—and you probably have this dialed in, but if not, it would be a worthwhile exercise to say, "All right, what is my housing? What is my food? What is my transportation? How much am I spending on insurance, Medicare health costs, taxes, travel, and a cushion for home repairs, and again, that long-term care idea?"
And then second, we would subtract dependable income: so Social Security, pensions, your VA income. Look at all of that, and, you know, don't count your part-time wages if you're trying to determine, you know, whether you can afford to stop working. And then you would look to see if there's any income gap there that would have to come from savings. And ultimately, you know, hopefully there's enough there to cover it, but I think as a part of that plan, you would want to build in your giving and just say, "Lord, you know, what could I do here that allows me to be responsible as a steward and yet honor my desire to give?"
Before we even attach names to it, or ministries, or anything, let's go ahead and include the giving in your plan. And now we know what you have. And then it's a matter of saying, "Okay, where do I want to give this money?" And it's probably, you know, not necessarily going to be other people, because I think to your point, you want to make sure you're never allowing them to become financially dependent on you, because at some point, we're actually reinforcing the wrong behaviors.
You know, when others ask for financial help, we need to remember that generosity should be willing and wise, but not driven by guilt. In 2 Corinthians 8, Paul tells us that giving is accepted according to what one has, not according to what they don't have. So, I don't think the goal is to choose between generosity and retirement; it's really to steward both faithfully, trusting God while making prudent provision for the future, but not allowing someone to continue to make poor choices and not follow through on their obligations and perhaps not even learn from their mistakes, because you're there to bail them out. That's not how the Lord treats us, and I don't think it's a good model for how we should think about serving others. Does that make sense?
Glenna: Not that He doesn't bail me out often, but yeah, it does make sense.
Rob West: But not every time, right? We often have to face our consequences, and those are valuable lessons.
Glenna: Yes, yes, indeed they are. Well, okay.
Rob West: So, you know, I think it starts with you kind of getting really familiar with—and maybe you already are—where you're at now. What are your income and expenses? What are you going to need for the future? What do you truly have available for your giving? And maybe you want to stretch and do more from time to time; that's great. But I think it's also going to involve your willingness to have some frank and tough-love conversations to say, "You know what? I don't have unlimited resources. I need to be thoughtful about, you know, how I'm spending. I'm really careful with my spending; I'm also trying to save for the future because I may have rising healthcare costs down the road that I need to be able to cover, and so there's a limit to what I'm able to do."
And I think, you know, you putting that back on them and saying, "You know what? This time I'm not—I'm not in a position to be able to help here. But at the same time, you know, I'm praying for you, I love you," and let's them—let them learn from some of these mistakes along the way, and perhaps get into a position where they can be more faithful as a money manager in the future without you, you know, always coming in to bail them out. And, you know, I think this repeated pattern of, "I need to borrow, I've got a short-term problem, I'll pay you back," and then they don't—well, eventually we know that's the pattern, we should expect it, and therefore, it's clear we probably don't need to continue.
Glenna: Yeah. That's so hard, isn't it?
Rob West: It's so hard. It is absolutely hard, and yet, I think it helps when in your mind and in your heart, you know that what you're doing is actually—by having that hard conversation and saying no—you're actually setting them up on a better path for the future. It may get more difficult in the short term, but we're getting them to a place, Lord willing, where they're going to start to make some changes, and that's going to help down the road. Nobody wants to put them in a position where they can continue to make the same mistakes over and over again, and yet your giving may be doing just that. And I think you reminding yourself of that might help you as you have some of these hard conversations.
Glenna: Yeah. Well, I sure thank you so much.
Rob West: Well, I appreciate it. I'd be happy to make one of our Certified Christian Financial Counselors available to you, Glenna, if you'd like that—somebody who's just an objective third party, who's been trained in this area, who can encourage you, pray for you, but also help you dial in your budget and even maybe get an understanding of where you're at today and what you need for the future. Would that be helpful?
Glenna: Oh, that would be wonderful! That would certainly be helpful. Yes.
Rob West: Let's do that. We're going to cover the cost of that; it won't cost you anything, but hopefully it'll be a blessing to you. So, you stay on the line; we'll get you connected with a Certified Christian Financial Counselor to meet with you several times and see if they can get you pointed in the right direction. Sounds like you're doing a great job on your own, but having somebody there to give you some new ideas certainly can't hurt.
We'll be back with our final segment and more calls after this.
SEGMENT 5
Rob West: Great to have you with us today on Faith & Finance here on American Family Radio. I'm Rob West. Well, as we start a new month, as a listener-supported ministry, Faith & Finance is dependent upon your gifts. And so if you love the ministry, we'd love to invite you to become a supporter here at FaithFi. You can make a one-time gift or consider becoming a partner. Partners support us at $35 a month or more, or at least $400 a year. And as a way of saying thanks, we're able to send you four issues of our magazine, all of our new studies and devotionals, our field guides, Pro access to the FaithFi app, and quarterly ministry updates so you can celebrate with us on all that God is doing. If you'd like to learn more or make a gift today, we'd certainly be grateful. Just head to faithfi.com/give. That's faithfi.com/give. Thanks in advance.
We're going to have room for perhaps one to two more calls in addition to those holding, and so if you have a question, call right now: 800-525-7000. We'd love to hear from you. Let's go to Tennessee. Larry, thanks for your patience. Go ahead.
Larry: Yeah, Rob, thank you. Appreciate your service. Yeah, I got a—I'm 63, single parent. I got a late start in life, thank God. You know, 16 years of sobriety coming up. I moved out of a blue state into Tennessee to raise my daughter. I'm a single parent raising a 12-year-old. So, we have tended a little 1-acre property that I've been working on. I've been able to put in septic, electric, water, driveways, and other stuff. I got a shelter for the trailer we're living in. Ultimately, I'm going to build a little house, and when it's all said and done, it'll be mortgage-free. It's a really sweet location on a private road. I'm wondering—I got the deed now in my name—how I can transfer the property into my daughter's name, and when I should do that? You know, since I'm 63, she'll be a young adult probably when I pass. I don't know that for sure, but I want it to be a smooth transition for her, and I don't know if I should put the property in her name now or how I should approach that in the future.
Rob West: Yeah, that's a great question, Larry. You sound like a great dad, and I love this plan. You know, since she is only 12, I would generally not recommend leaving the property directly to her without an estate plan. A minor can't simply take control of an inherited real estate, so you would need to plan for who will manage it until she reaches an appropriate age.
So, a few common practices on this would be to have a will with a testamentary trust, a revocable living trust, or, depending on your state, a deed that transfers the property at death. I think the revocable living trust is probably the best option, although I'd connect with an estate planning attorney to talk it through. But for a 12-year-old, a trust can be especially useful because you can specify who manages the home for her and when she eventually receives control. The property could also be liquidated and used to support her needs financially. And then you could choose an age—maybe 21, maybe 25, perhaps sooner—for her to receive everything, whenever you would like that to happen or as soon as is legally possible.
So, that would be the way that I would go. You also want to make sure part of your plan includes who would be her guardian, who would manage the inheritance, how taxes and insurance and maintenance on the property would be paid assuming it's kept, and then what happens if the house hasn't been completed when you pass away. So, we just want to make sure we have all of these provisions in place, and that's where a godly estate planning attorney could walk you through all of this and put those pieces in place.
Larry: Yeah, right. Yeah, we're on a fixed income, too, to a certain extent. I just work out of necessity in the paper, and we're just slowly doing this. I drew early retirement out of necessity. I don't have a large overhead, and so we're kind of just doing this on a wing and a prayer, you know what I mean? So, I should have a will with a living trust versus putting the property in her name now?
Rob West: Yeah, that's right. Because, you know, I mean, you can leave a 1-acre property in your future home to your daughter, but you probably don't want a minor inheriting and managing the real estate outright. The law is going to place restrictions on a fiduciary's management and sale of a minor's property that would require court approval.
So, for instance, the trust could say the property is ultimately for your daughter's benefit. You could name a trusted adult or an institution as a trustee to manage it if you pass away while she's still a minor. The trustee can handle the taxes, the insurance, and the repairs, and then determine when and under what conditions she receives control.
That would assume that perhaps there's life insurance. I'd have a good term policy in place at least getting you through until she's an adult so that she would have something that would be able to fund the trust apart from the property that could be used for her care and expenses. But in either case, I think a revocable living trust would be the way to go.
Larry: Okay, thank you. I got that written down right. I appreciate that. Thank you so much for your service. God bless you. Have a nice day.
Rob West: Absolutely, Larry, and you as well. Thanks for calling. Let's go to North Carolina. Hi, Joy, how can I help you?
Joy: Good morning, Rob. Love your program, and I've learned so much from you. That's very valuable. Quick two questions, if it's okay. The first one is, we had lived in Virginia. We've been in North Carolina for a year, so we had a will written in Virginia and had a particular house there which we have sold. And we now have bought one in North Carolina. So, do we need a new will to cover the fact that we moved to another state and have a different house?
Rob West: Yeah, I would have a North Carolina estate planning attorney review it, Joy. That doesn't necessarily mean the Virginia will became invalid simply because you moved. North Carolina law can recognize wills executed according to certain other states' laws. However, it's just a great reason for an estate plan review because state laws differ. And so, you would want the attorney to review the will, the powers of attorney, any healthcare documents, beneficiary designations, and any trust documents, and then make sure everything works properly under the North Carolina law.
Joy: Okay. And my one daughter was concerned—we just have a regular will, my husband has his and I have mine—but she said she hears a lot about trusts. And I know there is a difference, and I just wondered, in your opinion, what the wisest way to go was.
Rob West: Yes. And so you have a will now, you do not have a trust, correct?
Joy: Yes.
Rob West: Okay, yeah. Yeah, it's a very common question as we're thinking about estate needs. And essentially, the trust can hold and manage property and assets for you and your beneficiaries. A will just simply says who gets your property after you die.
So, a will is simpler, less expensive to establish. It names the beneficiaries, specifies who receives the property, names the executor, and then, very important for parents, nominates guardians for minor children. A will goes through probate and the court-supervised process for administering an estate.
However, a revocable living trust is created during your lifetime. You then transfer assets into it. You remain in control while you're alive, including being able to make changes, and then you name what's called a successor trustee to take over if you become incapacitated or die. So, the assets properly titled in the trust then avoid probate, which can provide more privacy, potentially make administration easier, make it a little more efficient and speedy in terms of how your assets are transferred.
The other key distinction is the trust can control how and when beneficiaries receive assets. So, for example, you could say keep the money in the trust for a child until age 25 rather than giving it outright, whereas with a will, everything automatically passes at death. The other difference with the trust is that it can go into effect where the successor trustee steps in if you're incapacitated but still living, whereas the will only takes effect at your passing. And so, it allows somebody to come in and manage your assets and property prior to your passing if you're unable to do so.
So, it really isn't necessarily will versus trust. Many people with a living trust still need a—or excuse me, a living trust still need a will, often called a pour-over will to address assets that weren't transferred to the trust. But it ultimately comes down to whether you feel like you'd like to have some of the features of the trust: the privacy, the avoiding probate, the ability to control prior to death or to be able to hold assets in the trust and then pass them beyond death, maybe at certain triggering events. But apart from that, a will is really the most key document, just so that you're not intestate where the state is making those decisions on your behalf. Does that make sense?
Joy: Now, would that be a revocable or irrevocable trust?
Rob West: It would be revocable, which means you're still maintaining control, you can make changes at any time. Irrevocable would really only be for very complex situations, very large estates. There would probably not be any reason that I've heard of for you to have an irrevocable trust that's permanent, where you're essentially losing control of those assets and property. The revocable allows you to get the benefits of the trust but still be in control so long as you can make decisions.
Joy: Okay. Well, thank you. I hear your music, and I know it's time to go, so I'll call back another day with the other question.
Rob West: Very good, Joy. Thanks for your call. Thanks for being a faithful listener. Stay on the line; we're going to send you a copy of our magazine, Faithful Steward. The current edition is our special edition on women and wealth. I think it'll be a blessing to you, just our way of saying thanks for listening regularly. God bless you.
That's going to do it for us today. Big thanks to Taylor, Sandy, Devin, Michael, and everybody here at Faith & Finance that makes this possible. Again, if you'd like to support the ministry, we are listener-supported. Just head to faithfi.com/give. Faithfi.com/give. And we'll see you tomorrow. Bye-bye.
Rob West: Artificial intelligence can help you build a budget, explain an investment, or compare financial options in seconds. But how much should you trust it with your money? Hi, I'm Rob West. AI is quickly becoming part of everyday life, including the way we manage our finances. And like any tool, it can be used wisely or unwisely. So, how should Christians think of AI and money? We'll talk about that today, and then it's on to your calls at 800-525-7000. That's 800-525-7000. This is Faith and Finance on American Family Radio. Biblical wisdom for your financial decisions.
When new technology arrives, we can be tempted toward one of two extremes. We can either embrace it without much thought, or we can become suspicious of it and want nothing to do with it. But as stewards, we should ask a better question: How can we use this tool wisely and faithfully?
AI can already be remarkably helpful with financial information. You can ask it to explain the difference between a Roth IRA and a traditional IRA, define a complicated financial term, suggest categories for a spending plan, compare debt payoff strategies, or help you prepare questions for a financial professional. Used that way, AI can be a valuable research assistant.
But there's an important difference between having information and exercising wisdom. Proverbs 14:15 says, "The simple believes everything, but the prudent gives thought to his steps." That's a helpful principle in an age of artificial intelligence. AI can gather, organize, summarize, and analyze information remarkably quickly. But having more information doesn't remove our responsibility to consider carefully what's true and how we should respond.
Biblical wisdom is more than knowing facts. It's applying truth faithfully before God. And that requires something no technology can provide: spiritual discernment. AI might help you calculate whether you can afford a larger home, but it can't determine whether buying it reflects wise stewardship or simply a desire for more. It can compare two investment strategies, but it can't decide what faithfulness should look like in your particular circumstances. It can calculate how much room you have to give, but it can't worship God through generosity.
That doesn't make AI bad. It simply means we need to keep the tool in its proper place. And a few practical guardrails can help us do that.
First, verify important financial information. AI can sound confident even when the information is incomplete, outdated, or even wrong. The more significant the decision, the more important it is to confirm what you're seeing with reliable sources or a qualified professional.
Second, protect your privacy. Be cautious about entering account numbers, Social Security numbers, passwords, tax documents, or other sensitive financial information into an AI system. And remember that criminals can use AI, too. Voice cloning, convincing fake images and videos, and personalized scams are becoming easier to create. If you receive an unexpected request involving money, even if it appears to come from someone you know, verify it through another trusted channel before acting.
But perhaps the most important guardrail is this: Don't surrender your responsibility to think. AI promises efficiency, and that can be useful. But efficiency isn't always the highest good. Some financial decisions require prayer, patience, conversation, wise counsel, and time. That's especially true when money intersects with marriage, family, generosity, fear, competing priorities, or the question of how much is enough. AI can help you reach a goal more efficiently, but you still have to decide whether it's the right goal.
A wise financial professional like a Certified Kingdom Advisor can understand family dynamics that don't fit neatly into a spreadsheet, ask questions you may not have considered, and walk with you through decisions over time. And a professional who understands biblical stewardship can help you think beyond simply maximizing wealth toward faithfully managing what God has entrusted to you. To start working with a CKA in your area, go to findacka.com.
And this is something worth thinking about carefully at FaithFi as well. In the future, the FaithFi app will include optional AI features designed to make certain parts of money management easier. For example, AI could streamline routine tasks or use your past spending patterns to suggest starting a budget. Of course, users will be able to choose whether to turn those features on or off. Either way, the principle remains the same: the technology serves the steward, not the other way around.
By the way, if you want to check out the FaithFi app, just go to faithfi.com/app. That's faithfi.com/app. Back with your questions after this. Stick around.
SEGMENT 2
Rob West: Thanks for joining us today on Faith and Finance here on American Family Radio. I'm Rob West. Well, we're going to be taking your calls and questions here in just a moment. That number: 800-525-7000. That's 800-525-7000. We would love to hear from you today, be able to think about how you're managing God's money and the questions you have in light of biblical wisdom. So with lines open at the moment, Pat standing by to take those calls, you can call 800-525-7000. Let's dive in, we're going to begin in Louisiana today. Mark, go right ahead, sir.
Mark: Yes. Hi, I've got a question. I've got a— my existing home that we— my primary home we live in, we owe about $60,000 balance on our mortgage, and it's— the interest rate— it was a 15-year loan, we owe four years on it, a little less than four, and the interest rate's 3.25. And we've since— just this year we bought a second home— a lake house, lake home, and we've got— we borrowed $140,000, we got a home equity loan with our— with our bank, and I've got a— what the banker was saying we need to do— and that— that home equity loan is at 5.6 or something, just give or take, right now for six— it's a— it's a six-month introductory thing. Then after six months, it's going to go up to 7 or possibly more with interest rates up. Right. And— and then, so I've— I'm selling a rental property, I'm going to have $60,000— I'm getting some extra money. So originally what I was planning on doing was taking that 60, and the banker said to pay the first loan off, and then the home equity loan would turn into our primary loan, first lien or something?
Rob West: Yeah, it would be in first position at that point, right.
Mark: Correct, first position. Then it would— she said they could have better rates or something. But I was wondering, should I take the 60 and put it on the— the higher interest instead of trying to knock that first one out, and losing that 3.25, you know, I don't know, I'm asking? And then, a second part, we've got about 1.1 in retirement IRAs, Simple IRA accounts, and is it beneficial to try to just— you know, the market's done great and stuff, and I, you know, I'm 64, I can draw— withdraw anything without penalty, just try to knock that mortgage out and then let the market recover, or I don't know?
Rob West: Yeah. Well, this one's pretty straightforward in my mind here, Mark. I'm not quite sure why she would have suggested that, because even though it's true that a second loan would be in first position, it would require you to refinance it in order to get anything more attractive, and it's just not available today because of what you noted, and that is interest rates have moved higher significantly. So that relatively quote "cheap" debt that you have at three and a quarter is not something you could replace today. And so, you know, I think it's pretty straightforward. In my mind, you would just keep making the scheduled payments on the first mortgage at three and a quarter. You'd put any extra funds you have, so long as you didn't deplete your emergency reserves and the needed liquidity, especially because you're in the rental business and you're going to need some money for the unexpected, not to mention your personal finances. But I'd put anything extra that you get as a windfall toward that 5.3% variable loan that's about to expire and jump up to your point. So, you know, that's a pretty clear plan of attack here. In terms of considering taking funds from the Simple IRA, I wouldn't do that. You know, you're working full-time, so you've already got— you're probably paying at a higher rate than you will be— excuse me, tax bracket— than you will be down the road when you're no longer working. And so now is not the time for you to create a taxable event by pulling out of that Simple IRA. You also have the opportunity cost of that money no longer growing on a compounded basis in a tax-deferred environment. And so just given the fact that, again, that interest rate is so low, and it's not going to be difficult for you to outpace that, especially given the tax favorability, I would probably leave that Simple IRA right where it is, let it keep growing. You're continuing to work. Let's get that second loan paid off as quickly as you can, the 140,000, and then let's just ride out that first mortgage until it's paid off. But even if that's much further down the road, I'm okay with that.
Mark: Yeah, yeah, it's just four years— as in like 46 months actually, so—
Rob West: Okay.
Mark: Okay, well, that's great. Like I say, I don't know why she led me that direction, you know, when I did it— several mortgage companies were talking, you know, "You need to refinance it, let's just re—" you know? Well, I hate to lose that, you know, not paying a whole lot of interest, you know? I paid off interest up front, now the sweet part I'm going to lose, you know?
Rob West: Yeah. I mean, the only reason you would ever refinance that loan is if you were a mortgage broker and you stood to make some money off of that transaction, because there is no benefit to you by getting rid of that 3.25% interest rate that is not available today. In fact, it would more than double if you were to try to refinance that loan. So we need to attack the variable loan soon to be 7% plus. That's going to be a guaranteed rate of return equal to that interest rate. That's a good thing that we get rid of that. I wouldn't be in a hurry to get rid of the first mortgage.
Mark: Good deal, you answered my question then, great. I listen to you regularly, so we love the program, AFR is great, trivia Friday, we love it, so—
Rob West: Well, I couldn't agree more. This is an incredible home for Faith and Finance. Love the team and the ministry here at AFA and AFR, and so thankful to have you as a regular listener. Mark, stay on the line, we'll get your information. I'd love to send you a copy of the latest issue of Faithful Steward, our magazine, that I think will be an encouragement to you, just a small way to say thanks for being a part of the program today. Lord bless you, sir. 800-525-7000 is the number to call. Let's go to Iowa, Katrina, go ahead.
Katrina: Hello, I had a question about our teenagers and how to help them establish a line of credit.
Rob West: Yeah. Well, I love this question because it is wise to begin thinking about building credit slowly while also pointing out the dangers of debt and the fact that borrowing is not a sin, but the Bible discourages it, and certainly I think there's plenty of warnings there. So what are the options for a child who's under 18? Well, you could consider adding them as an authorized user on a well-managed credit card. Well-managed meaning, you know, where you ideally would pay it off every month, where the balance never gets above 30% of the limit, where you've got a long history and every payment is made on time. You will want to confirm before you do that, if you consider that option, that the issuer reports authorized user activity to the credit bureaus. Not every creditor will pass the credit history along to the authorized user, but if they do, and many do, that would allow your good credit history to start populating to your child's credit report, which is going to immediately begin to establish really positive history. The other option is you could consider, in a training environment where you're walking alongside them, getting them their own secured credit card. Discover, Capital One are two that have really good secured cards. Essentially, you'd have the child, perhaps through a part-time job, save up $200 or $300 to put that on deposit. They then issue the credit against it, so there's no risk of them charging beyond what's on deposit with the bank, and then let them use that for all safe budgeted expenses, expenses that they've taken on at your direction, maybe gas for the car or whatever that might be, pay it in full every time, and use that to establish credit. Stay on the line, we'll be right back.
SEGMENT 3
Rob West: Thanks for joining us today on Faith and Finance here on American Family Radio. I'm Rob West. Well, we're taking your calls and questions today. We've got some lines open. It's time for you to call right now: 800-525-7000. That's 800-525-7000.
Before the break, we were talking to Katrina in Iowa. She was wondering about the best ways to get her kids established with credit. You know, I mentioned a couple of options. One is an authorized user. You've got to be careful; you've got to make sure it's good history that you're passing on, and you've got to keep it that way because if you had a missed payment or you went above a 30% threshold, now all of a sudden, we're potentially sharing negative information. That's obviously not helpful. The second is a secured credit card, but I would journey alongside that teen to make sure they understand what you're doing and why, the dangers of debt, the importance of establishing a spending plan, not to mention just the biblical worldview of money. Discover and Capital One both have great options for secured credit cards.
Third, I would just say go ahead and pull a copy of each of their credit files with TransUnion, Equifax, and Experian just to make sure there's not any inaccurate information on there. It does happen, and so it is important to go ahead, even as teens, to go ahead and check their credit periodically. So, I think those are really maybe the key ideas, but give me your thoughts on all that, and I'd love any follow-up questions.
Katrina: Yeah, well, we have two teenagers. The 17-year-old is going to be 18 in just a couple of months, so in some ways, it's maybe a moot point, and just when he turns 18, we could help him establish his own credit card. I'm assuming he can do that at age 18. We also have a 16-year-old where we hadn't thought about this until we tried to transition them to their own cell phone so they could begin taking over those payments themselves. And the cell phones often times have these extended three-year contract deals, and you get a free phone, but you have to have good credit. And neither of them have ever had a credit card; they have bank accounts, they have a debit card, they have cars that are paid in cash, so they really don't have, from my understanding, a credit history. And honestly, I don't know all the things that go into a credit report, so maybe checking out their credit reports is a good thought. But yeah, any comments about those things?
Rob West: Yeah, great. So, the place to get those credit files is annualcreditreport.com. That's the only website that's government-sponsored that allows you to access those credit reports free. You won't get the score, although so many people offer that these days—Credit Karma and a few others—but annualcreditreport.com is the place to go to pull those three credit files. And that would just be interesting for you to see what's on it. It'd be a good teaching opportunity for you to walk through it with the kids. There probably won't be much there.
For the 16-year-old, the easiest starting point, other than maybe a debit card to get them to start understanding how to handle their own money and give, save, and spend—and really kind of teaching them to handle that wisely—you know, the authorized user is probably the best option where, again, they would inherit your credit history. But just make sure it's the right account with a long, positive payment history, a low balance, and it's always paid on time.
For the soon-to-be 18-year-old, yes, I would look to help them establish credit in their own name. I would consider, again, a no-annual-fee student card or a secured credit card, and then maybe they put something small on it every month like gas or a monthly subscription, and then set it to automatically pay in full the statement balance every month. And that's going to begin to establish some positive history there. So, I think both of those could work really well, and you'll be surprised at how quickly they will be offered credit just because these companies are wanting to establish a relationship, and they are willing to play the long game there.
Katrina: Yes. Okay, well, that's helpful information, and thank you for that insight.
Rob West: Happy to do it. Let me send you two resources, Katrina. It's called Open Hands Finance, and it's a really powerful workbook. There's a podcast that goes along with it. They actually not only will learn some of the biblical principles of money management in the area of debt, spending, and investing, but they will also work through some case studies where they actually have to make decisions based on some of the scenarios that are presented. I think this could be a great resource for both of your soon-to-be adult children, and we'll send two copies out to you. Again, it's called Open Hands Finance, and it's our gift to you, okay?
Katrina: All right, thank you very much.
Rob West: You're welcome, Katrina. Call anytime.
800-525-7000 is the number to call. We do have some lines open today, so if you have a question related to preparing the next steward—perhaps for you, it's investing for the future, or maybe you have some debt that's just been lingering and you're wondering the best way to get that paid off—we'd love to help. Call right now; lines are open: 800-525-7000.
Let's go to Ohio. Glenna, thanks for calling. Go ahead.
Glenna: Hi, Rob. I just want to thank you for helping all of us folks out here stay in line with God's will for our finances. You are such a bonus blessing for us.
Rob West: Oh, that's so sweet. Thank you for saying that. It means a lot; I'm so delighted to be able to help.
Glenna: Well, I'll tell you what, when I'm calling today, I'm not even sure why I'm calling you. I am a widow, I'm 76, and I live by myself in a condo. So I have, when my finances go out each month, first it's the church, then I have to pay my mortgage on the condo, I have to pay my condo fee to live here, and then my car. Those are my expenses that go out other than just living, gifting, and that kind of thing.
The tax people say I bring in about $74,000 a year from my Social Security, my STRS retirement, and some VA money that I get as well. So, here's my thing. I have a wonderful family; I am so blessed. And I love my family. My pastor says that's one of my problems: I love too deeply those that I love. That can be a problem, but it seems to be. And I'm looking at this with Proverbs 3:9 in mind: How do I honor God with what He has given me financially, okay? I have a son, I have two grandchildren, and I have a cousin that constantly need financial help with this thing or the other thing.
Rob West: Let's do this. That's really helpful background. I want to hear the rest of the story and give you my thoughts. I'm up against this break, but we're going to come right back to you, Glenna, right after this. So, you stay right there; we'll be right back.
SEGMENT 4
Rob West: Thanks for joining us today on Faith and Finance here on American Family Radio. I'm Rob West. We do have some lines open today. If you have a question, call right now: 800-525-7000. That's 800-525-7000. We would love to take those questions today and help you apply God's wisdom to your financial decisions.
Well, before the break, we were talking to Glenna in Ohio. She's 76, working part-time. She is receiving retirement income from the VA, another retirement plan, as well as Social Security, bringing in about $76,000 a year. She's wondering how much she really needs for retirement, and then she has a lot of people pulling on her for financial needs. Her generous heart is wanting to share with everyone who asks, but she's also wanting to make sure that she's a wise steward at the same time. And I think that's really the key idea here. I do have some thoughts that I want to share with you, but let me just let you finish the story, Glenna. Was there anything else you wanted to add?
Glenna: Not really, Rob. I guess—I guess I don't want to be an enabler in the situations. And yet, my heart wants to help, and so you give and you give and you give, and the promise is always, "Well, we're going to pay you back," but it never gets paid back, and you know that when you give it. You know? But that—but that's what God says. But like you said, that there here is that—that is the key question: What is—what is God-honoring in this? And—and how do I protect myself for my future, you know, so that I have enough that I'm not going to be destitute and have to come back on them and say, "Okay, Mommy's moving in," you know?
Rob West: Exactly. And I—I think that's really the key, and perhaps that's the starting point, is to understand, you know, what you need for your own lifestyle that you believe the Lord has called you to. It sounds like you're living modestly. But at the same time, we not only have what you need to cover on a monthly basis today, but we also have, you know, what might come down the road. Might you need long-term care at some point, which, you know, could be quite expensive, and where would that come from?
And so, you know, we want you to be wise. We want you to be able to listen to the leading of the Lord, follow the Holy Spirit in your giving. I think that honors the Lord. But we also need to be thoughtful about how we do that, because honoring God with your money means recognizing that everything you have belongs to Him, and then managing it in light of that truth, and that includes our generosity. But it also includes providing for legitimate future needs. And so it's not selfish for you to save for retirement. Scripture commends wise preparation, among other places. First Timothy 5, it reminds us of our responsibility to provide.
Remember, giving isn't the first or the only, I'll say, financial priority in Scripture. It also encourages saving and diversification and honoring our financial obligations. So, I think the starting point is really to say, "Okay, what annual retirement income or spending do I have?" So, I've got to look at—and you probably have this dialed in, but if not, it would be a worthwhile exercise to say, "All right, what is my housing? What is my food? What is my transportation? How much am I spending on insurance, Medicare health costs, taxes, travel, and a cushion for home repairs, and again, that long-term care idea?"
And then second, we would subtract dependable income: so Social Security, pensions, your VA income. Look at all of that, and, you know, don't count your part-time wages if you're trying to determine, you know, whether you can afford to stop working. And then you would look to see if there's any income gap there that would have to come from savings. And ultimately, you know, hopefully there's enough there to cover it, but I think as a part of that plan, you would want to build in your giving and just say, "Lord, you know, what could I do here that allows me to be responsible as a steward and yet honor my desire to give?"
Before we even attach names to it, or ministries, or anything, let's go ahead and include the giving in your plan. And now we know what you have. And then it's a matter of saying, "Okay, where do I want to give this money?" And it's probably, you know, not necessarily going to be other people, because I think to your point, you want to make sure you're never allowing them to become financially dependent on you, because at some point, we're actually reinforcing the wrong behaviors.
You know, when others ask for financial help, we need to remember that generosity should be willing and wise, but not driven by guilt. In 2 Corinthians 8, Paul tells us that giving is accepted according to what one has, not according to what they don't have. So, I don't think the goal is to choose between generosity and retirement; it's really to steward both faithfully, trusting God while making prudent provision for the future, but not allowing someone to continue to make poor choices and not follow through on their obligations and perhaps not even learn from their mistakes, because you're there to bail them out. That's not how the Lord treats us, and I don't think it's a good model for how we should think about serving others. Does that make sense?
Glenna: Not that He doesn't bail me out often, but yeah, it does make sense.
Rob West: But not every time, right? We often have to face our consequences, and those are valuable lessons.
Glenna: Yes, yes, indeed they are. Well, okay.
Rob West: So, you know, I think it starts with you kind of getting really familiar with—and maybe you already are—where you're at now. What are your income and expenses? What are you going to need for the future? What do you truly have available for your giving? And maybe you want to stretch and do more from time to time; that's great. But I think it's also going to involve your willingness to have some frank and tough-love conversations to say, "You know what? I don't have unlimited resources. I need to be thoughtful about, you know, how I'm spending. I'm really careful with my spending; I'm also trying to save for the future because I may have rising healthcare costs down the road that I need to be able to cover, and so there's a limit to what I'm able to do."
And I think, you know, you putting that back on them and saying, "You know what? This time I'm not—I'm not in a position to be able to help here. But at the same time, you know, I'm praying for you, I love you," and let's them—let them learn from some of these mistakes along the way, and perhaps get into a position where they can be more faithful as a money manager in the future without you, you know, always coming in to bail them out. And, you know, I think this repeated pattern of, "I need to borrow, I've got a short-term problem, I'll pay you back," and then they don't—well, eventually we know that's the pattern, we should expect it, and therefore, it's clear we probably don't need to continue.
Glenna: Yeah. That's so hard, isn't it?
Rob West: It's so hard. It is absolutely hard, and yet, I think it helps when in your mind and in your heart, you know that what you're doing is actually—by having that hard conversation and saying no—you're actually setting them up on a better path for the future. It may get more difficult in the short term, but we're getting them to a place, Lord willing, where they're going to start to make some changes, and that's going to help down the road. Nobody wants to put them in a position where they can continue to make the same mistakes over and over again, and yet your giving may be doing just that. And I think you reminding yourself of that might help you as you have some of these hard conversations.
Glenna: Yeah. Well, I sure thank you so much.
Rob West: Well, I appreciate it. I'd be happy to make one of our Certified Christian Financial Counselors available to you, Glenna, if you'd like that—somebody who's just an objective third party, who's been trained in this area, who can encourage you, pray for you, but also help you dial in your budget and even maybe get an understanding of where you're at today and what you need for the future. Would that be helpful?
Glenna: Oh, that would be wonderful! That would certainly be helpful. Yes.
Rob West: Let's do that. We're going to cover the cost of that; it won't cost you anything, but hopefully it'll be a blessing to you. So, you stay on the line; we'll get you connected with a Certified Christian Financial Counselor to meet with you several times and see if they can get you pointed in the right direction. Sounds like you're doing a great job on your own, but having somebody there to give you some new ideas certainly can't hurt.
We'll be back with our final segment and more calls after this.
SEGMENT 5
Rob West: Great to have you with us today on Faith & Finance here on American Family Radio. I'm Rob West. Well, as we start a new month, as a listener-supported ministry, Faith & Finance is dependent upon your gifts. And so if you love the ministry, we'd love to invite you to become a supporter here at FaithFi. You can make a one-time gift or consider becoming a partner. Partners support us at $35 a month or more, or at least $400 a year. And as a way of saying thanks, we're able to send you four issues of our magazine, all of our new studies and devotionals, our field guides, Pro access to the FaithFi app, and quarterly ministry updates so you can celebrate with us on all that God is doing. If you'd like to learn more or make a gift today, we'd certainly be grateful. Just head to faithfi.com/give. That's faithfi.com/give. Thanks in advance.
We're going to have room for perhaps one to two more calls in addition to those holding, and so if you have a question, call right now: 800-525-7000. We'd love to hear from you. Let's go to Tennessee. Larry, thanks for your patience. Go ahead.
Larry: Yeah, Rob, thank you. Appreciate your service. Yeah, I got a—I'm 63, single parent. I got a late start in life, thank God. You know, 16 years of sobriety coming up. I moved out of a blue state into Tennessee to raise my daughter. I'm a single parent raising a 12-year-old. So, we have tended a little 1-acre property that I've been working on. I've been able to put in septic, electric, water, driveways, and other stuff. I got a shelter for the trailer we're living in. Ultimately, I'm going to build a little house, and when it's all said and done, it'll be mortgage-free. It's a really sweet location on a private road. I'm wondering—I got the deed now in my name—how I can transfer the property into my daughter's name, and when I should do that? You know, since I'm 63, she'll be a young adult probably when I pass. I don't know that for sure, but I want it to be a smooth transition for her, and I don't know if I should put the property in her name now or how I should approach that in the future.
Rob West: Yeah, that's a great question, Larry. You sound like a great dad, and I love this plan. You know, since she is only 12, I would generally not recommend leaving the property directly to her without an estate plan. A minor can't simply take control of an inherited real estate, so you would need to plan for who will manage it until she reaches an appropriate age.
So, a few common practices on this would be to have a will with a testamentary trust, a revocable living trust, or, depending on your state, a deed that transfers the property at death. I think the revocable living trust is probably the best option, although I'd connect with an estate planning attorney to talk it through. But for a 12-year-old, a trust can be especially useful because you can specify who manages the home for her and when she eventually receives control. The property could also be liquidated and used to support her needs financially. And then you could choose an age—maybe 21, maybe 25, perhaps sooner—for her to receive everything, whenever you would like that to happen or as soon as is legally possible.
So, that would be the way that I would go. You also want to make sure part of your plan includes who would be her guardian, who would manage the inheritance, how taxes and insurance and maintenance on the property would be paid assuming it's kept, and then what happens if the house hasn't been completed when you pass away. So, we just want to make sure we have all of these provisions in place, and that's where a godly estate planning attorney could walk you through all of this and put those pieces in place.
Larry: Yeah, right. Yeah, we're on a fixed income, too, to a certain extent. I just work out of necessity in the paper, and we're just slowly doing this. I drew early retirement out of necessity. I don't have a large overhead, and so we're kind of just doing this on a wing and a prayer, you know what I mean? So, I should have a will with a living trust versus putting the property in her name now?
Rob West: Yeah, that's right. Because, you know, I mean, you can leave a 1-acre property in your future home to your daughter, but you probably don't want a minor inheriting and managing the real estate outright. The law is going to place restrictions on a fiduciary's management and sale of a minor's property that would require court approval.
So, for instance, the trust could say the property is ultimately for your daughter's benefit. You could name a trusted adult or an institution as a trustee to manage it if you pass away while she's still a minor. The trustee can handle the taxes, the insurance, and the repairs, and then determine when and under what conditions she receives control.
That would assume that perhaps there's life insurance. I'd have a good term policy in place at least getting you through until she's an adult so that she would have something that would be able to fund the trust apart from the property that could be used for her care and expenses. But in either case, I think a revocable living trust would be the way to go.
Larry: Okay, thank you. I got that written down right. I appreciate that. Thank you so much for your service. God bless you. Have a nice day.
Rob West: Absolutely, Larry, and you as well. Thanks for calling. Let's go to North Carolina. Hi, Joy, how can I help you?
Joy: Good morning, Rob. Love your program, and I've learned so much from you. That's very valuable. Quick two questions, if it's okay. The first one is, we had lived in Virginia. We've been in North Carolina for a year, so we had a will written in Virginia and had a particular house there which we have sold. And we now have bought one in North Carolina. So, do we need a new will to cover the fact that we moved to another state and have a different house?
Rob West: Yeah, I would have a North Carolina estate planning attorney review it, Joy. That doesn't necessarily mean the Virginia will became invalid simply because you moved. North Carolina law can recognize wills executed according to certain other states' laws. However, it's just a great reason for an estate plan review because state laws differ. And so, you would want the attorney to review the will, the powers of attorney, any healthcare documents, beneficiary designations, and any trust documents, and then make sure everything works properly under the North Carolina law.
Joy: Okay. And my one daughter was concerned—we just have a regular will, my husband has his and I have mine—but she said she hears a lot about trusts. And I know there is a difference, and I just wondered, in your opinion, what the wisest way to go was.
Rob West: Yes. And so you have a will now, you do not have a trust, correct?
Joy: Yes.
Rob West: Okay, yeah. Yeah, it's a very common question as we're thinking about estate needs. And essentially, the trust can hold and manage property and assets for you and your beneficiaries. A will just simply says who gets your property after you die.
So, a will is simpler, less expensive to establish. It names the beneficiaries, specifies who receives the property, names the executor, and then, very important for parents, nominates guardians for minor children. A will goes through probate and the court-supervised process for administering an estate.
However, a revocable living trust is created during your lifetime. You then transfer assets into it. You remain in control while you're alive, including being able to make changes, and then you name what's called a successor trustee to take over if you become incapacitated or die. So, the assets properly titled in the trust then avoid probate, which can provide more privacy, potentially make administration easier, make it a little more efficient and speedy in terms of how your assets are transferred.
The other key distinction is the trust can control how and when beneficiaries receive assets. So, for example, you could say keep the money in the trust for a child until age 25 rather than giving it outright, whereas with a will, everything automatically passes at death. The other difference with the trust is that it can go into effect where the successor trustee steps in if you're incapacitated but still living, whereas the will only takes effect at your passing. And so, it allows somebody to come in and manage your assets and property prior to your passing if you're unable to do so.
So, it really isn't necessarily will versus trust. Many people with a living trust still need a—or excuse me, a living trust still need a will, often called a pour-over will to address assets that weren't transferred to the trust. But it ultimately comes down to whether you feel like you'd like to have some of the features of the trust: the privacy, the avoiding probate, the ability to control prior to death or to be able to hold assets in the trust and then pass them beyond death, maybe at certain triggering events. But apart from that, a will is really the most key document, just so that you're not intestate where the state is making those decisions on your behalf. Does that make sense?
Joy: Now, would that be a revocable or irrevocable trust?
Rob West: It would be revocable, which means you're still maintaining control, you can make changes at any time. Irrevocable would really only be for very complex situations, very large estates. There would probably not be any reason that I've heard of for you to have an irrevocable trust that's permanent, where you're essentially losing control of those assets and property. The revocable allows you to get the benefits of the trust but still be in control so long as you can make decisions.
Joy: Okay. Well, thank you. I hear your music, and I know it's time to go, so I'll call back another day with the other question.
Rob West: Very good, Joy. Thanks for your call. Thanks for being a faithful listener. Stay on the line; we're going to send you a copy of our magazine, Faithful Steward. The current edition is our special edition on women and wealth. I think it'll be a blessing to you, just our way of saying thanks for listening regularly. God bless you.
That's going to do it for us today. Big thanks to Taylor, Sandy, Devin, Michael, and everybody here at Faith & Finance that makes this possible. Again, if you'd like to support the ministry, we are listener-supported. Just head to faithfi.com/give. Faithfi.com/give. And we'll see you tomorrow. Bye-bye.
Artificial intelligence can help us build a budget, explain an investment, or compare financial options in seconds. But how much should we trust AI with our money? AI is quickly becoming part of everyday life; it even impacts the way we manage our finances. Like any tool, it can be used wisely or unwisely. On this Faith & Finance on AFR, Rob West discusses how Christians should think about AI and money. Then, it’s on to calls.
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