Rob West: A job can be more than a paycheck. It can open doors to dignity and Kingdom impact. Hi, I'm Rob West. Work isn't just about earning a living. In God's hands, it can transform lives and strengthen entire communities. April Tam Smith joins us today to share how one mission-driven restaurant is using work, hospitality, and generosity to make an eternal difference. 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 journey.
Rob West: April Tam Smith works alongside her husband, Graham, in New York City's financial district. Together with a group of like-minded partners, they're co-founders of a unique nonprofit restaurant, PS Kitchen in Times Square, that uses hospitality and business to serve others' needs. April, what a treat to have you on the program today.
April Tam Smith: Thank you so much for having me. Just talking with you brings a big smile on my face. Thank you.
Rob West: Oh, thank you, we're so thrilled. April, let's back up and go to the beginning. I want you to share with us what first inspired you to pursue this really unique approach to radical generosity.
April Tam Smith: Yeah, so I think it was a really God-planned idea early on. When we were first married, we spent a little bit of time just being very involved in different social businesses. We actually spent part of our time in Haiti for our honeymoon, and we spent part just volunteering for a traditional nonprofit, helping people get hearing aids and different health services. It was really meaningful. But what really, really impacted me, though, was the idea of social businesses, where you have these sustainable organisms that just continue to generate profits, create jobs. And one thing that I would always hang on to is just this memory, this visual of the people walking inside this industrial park in Haiti, and you just see this dignity and mission that they have. And that's when it really planted the seed of, like, wow, how cool it is to create jobs and how cool it is to like do, not only financial giving, but also giving opportunities and dignity, and just all these things that really come with meaningful employment. And that was the beginning of PS Kitchen.
Rob West: Oh, I love that, and it really is a beautiful picture of whole-life generosity, and I love that it's not just financial, it includes so much more than that. Now, we're going to back up even further to when you and Graham first met. It was at a Bible study. I'd love for you to share a little bit of that story. What drew you guys together?
April Tam Smith: Sure, sure. Gosh, my four-year-old one day when he hears it, he will be so embarrassed. Yes, we met at a Bible study, of course, Redeemer Bible study, as probably a million couples in New York, you'll find. And it was just really, really cool about Redeemer and how they really, yeah, created so many marriages out of it. But we met at a Bible study, I was leading it, and one of the first things that came up was I started talking non-stop about generous giving and these videos, and just quoting so many different things from what I've learned from their blog and the website, and I was like making everybody watch all the videos, and just guessing it after us, the leader. And it was really cool that he then later reached out to me and was like, "Wait, what's this website you kept talking about?" And that was really the start of realizing we had so much in common. He'd just come back from living in Uganda for two months. I'd already been to Haiti a bunch. I actually was like sharing a room with a single mom from Haiti and her four-year-old because I wanted them to move in with me when they were in between apartments. And we were just kind of living this like kind of parallel lives and working in our respective investment banks, but maybe having something that's slightly less conventional, and that was the start of a lot of really, really good conversations.
Rob West: Well, it's incredible, and obviously the Lord joined the two of you together and you started dating, and then you got married, and you had to begin to put your finances together, and I'm sure that was an adventure. Well, when we come back, April, we're going to dive into the business. We're going to talk about PS Kitchen and how you went from a personal vision to a thriving business, and how you've done this right there in Times Square, and just all the details. I know our listeners are so excited just to hear what you have created and how you're serving and loving people through this business. So, much more to come, folks, just around the corner. Our guest today, April Tam Smith, and we'll be back with more right after this.
SEGMENT 2
Rob West: Work done God's way doesn't just make a living; it makes a difference. We're joined today by April Tam Smith. She works alongside her husband Graham in New York City's financial district, and together with a group of like-minded partners, they're co-founders of a really unique nonprofit restaurant. It's right there in Times Square. It's called PS Kitchen, and they use hospitality and business to serve and love people. April, I want to dig into this business. I'm so excited to unpack it. First, what did you have to learn as you went from this personal vision into a real business there in New York City?
April Tam Smith: Literally everything. We were we were just nuts. We were kids who were nuts, and I'm really glad that God put us in these crazy, completely over-your-ski situations, because now that we're still standing 12 years later, I know that it is absolutely nothing short of an actual miracle. But yes, it was it was really everything. I've never been in food business. Obviously, I've been in equity derivatives for 21 years. I've never even really been a foodie, but my passion and the only thing that I kind of knew going into it was I wanted to start a social business, which means that it's a business that it's really not for me and hopefully as many aspects of it as possible could be creative and innovative, where it's giving back in various ways. So the food that it served, the people that we hire, the finances, just everything in between, we were trying to be as creative as possible of how do we use this business and how do we use the space.
Rob West: Yeah, I'm sure people are wondering what it looks like practically, because nonprofit and restaurant don't normally go together, and obviously you're doing it to serve great, creative food, but it's also got to be a great product that people love. So at its core, what is PS Kitchen?
April Tam Smith: Yeah, thank you for asking. So the idea is we wanted to start a beautiful restaurant with innovative, amazing food that hopefully people would want to come no matter what, which is why I named it PS. It's the idea that you might come in and you just see a beautiful space, really delicious food, and way later, when you're done with the meal, or you hear from a friend, you're seeing at the very bottom of our menu is that, PS, we employ people who might need a second chance; PS, we are actually using all plant-based food; PS, this is what we do with all of our profits. And it's just meant to be something that it's already attracting you and inviting you in, but it's also secretly or not so secretly doing hopefully a lot of good for the world while you're dining there. And that's the idea. We seated it with some friends with our own money, and other friends come in along the way, and over the years, essentially 100% of the ownership have been donated to 501(c)(3) so that it's really meant to be us just being a vehicle that made this thing happen. And that's why we call ourselves as co-founders and not co-owners.
Rob West: Well, you could have tucked it away in some random location. Instead, April, you put it right there on 48th Street in Times Square. How did you choose that location?
April Tam Smith: Yeah, um, so it's very intentional. I've been really blessed by amazing work relationships over the years where I felt like I always could be very authentic about my passion and who I am. You know, over the years, I've had coworkers come with me to Haiti, South Africa; I've had coworkers and clients come with me into prison; um, various colleagues join me in funding schools together in Congo—we've done several schools—and ultimately, I just keep sharing this desire or interest of like, "Man, I want to get more involved, or I want to give back more, uh, but maybe I don't necessarily have all the time or the mental space." So the idea was starting something that's so easily, conveniently located that even say my colleagues wanted to have a meal and actually gift back while they're eating, and not really taking a lot out of their time or their work, and same thing for Broadway goers. If you're already in the space and you're looking for food, um, it's a really good way that you are just doing multiple things at once, and and that's the idea.
Rob West: Now, hiring is central to your mission, so tell us a little bit about how you find these team members and then how you support them once they join your team.
April Tam Smith: Yeah. So another part of the inspiration of this business is Dr. Muhammad Yunus, uh, who has become a mentor and just an inspiration for PS Kitchen. As you may know, he was awarded the Nobel Peace Prize in 2006 for creating microfinance, but actually his next big innovation was the idea of social businesses, and he always said, "When you see a problem, create a business to solve it." And I just love that. So that's really was another thing that instigated the idea of PS. If I continue to volunteer for, um, various anti-trafficking organizations, or I'm volunteering in prison, and I'm sitting with someone and feeling this connection as humans, and all that they're saying—just like the people that I maybe are walking alongside with Haiti—is that I just want a job. I want that dignity, and I want to provide for my family. And I feel like that became such a big goal in my head, that when I started PS Kitchen, that was almost like these are the organizations I built PS for, you know? It wasn't so much like, "Now that I've built it, let me go find the organizations that I can now hire from." I mean, the the demand, it's it's endless. I I wish we had more, you know, seats and wish we had even more opening, uh, because it's such a big part of the mission. We have since opening hired over 150 individuals from various partner organizations like power mission, restore, defy, etc., etc. Uh, but we really want to do more, and that is like such a big, big part of the mission.
Rob West: Incredible. I can't help but think with your contagious personality and the joy that just oozes out of you, that there's some people listening today where maybe they have a passion or a vision for a mission-driven business. What would you say to them? What would be the first thing that they should do?
April Tam Smith: Oh, so good. Um, hey, I I love it. It's funny when I first brought this up to somebody who helped me start PS from the logistics and actual starting the whole business, he said, "Please don't do this." Uh, but if you insist on losing all your money and do something like this, please let me help you. Um, I think understandably this has to be something that is really through prayer and knowing that's what you're called to. But the cool thing about, I think, starting social businesses is that you really are not alone. Even though we founded it and we had to put a lot of our own savings up front, throughout the journey, I just felt like such an abundance and outpouring of support and generosity from everybody. The fact that we survived COVID when so many restaurants in New York City closed, and the government is allowing you to walk out on your lease, and just all these things that would make you make the practical decision of closing it, it it really was such an outpouring of people supporting us, and that's what got us to where we are today. So, don't feel like you have to do this alone.
Rob West: That's incredible. Unfortunately, we're out of time, April. Thanks so much for sharing your story.
April Tam Smith: Thank you.
Rob West: Folks, next time you're in Times Square, check out PS Kitchen. Back with your calls after this: 800-525-7000. Stick around.
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 looking forward to taking your calls and questions today at 800-525-7000. That's 800-525-7000. The team is standing by, the lines are open, and we will dive into those questions here in just a moment.
So, as you're thinking through what's going on in your financial life, perhaps you're thinking about that debt you're trying to pay off, or perhaps it's, when do I take Social Security? When is the right time for me? Or what might this next season look like? Perhaps you're wanting to give more and you're just wondering, can I afford to do that? And is that wise? How do I give more effectively?
Whatever you're wrestling with today, we'd love to help you think through it in light of biblical wisdom. Again, that number to call with lines open, and we'll dive into these questions here in just a moment: 800-525-7000. Again, that's 800-525-7000.
In the news today, Americans are stretching out their car loans to make vehicles more affordable, but monthly payments continue to climb. According to a new report from Edmunds, a record 25.5% of financed new car purchases in the third quarter involved loans lasting seven years or longer. Meanwhile, the average monthly payment reached a record $787. This is the average. And more than one in five buyers now pays at least $1,000 a month.
The average amount financed also climbed to nearly $44,700, with buyers paying an average of almost $10,000 in interest over the life of their loans. Longer loan terms may reduce monthly payments, but they also increase borrowing costs and the risk of owing more than the vehicle is worth, otherwise known as being "upside down". In fact, nearly 30% of vehicles traded toward a new car purchase in the second quarter had negative equity.
Now, don't let an affordable monthly payment convince you to buy more car than you can afford. Consider a reliable used vehicle, choose a less expensive model, or save for a larger down payment. The goal isn't just to afford the payment; it's to afford the car.
So be on your guard there. This is, of course, one of the three big budget busters that we need to be careful to watch. The easiest of the three to dial back, if your spending is out of line, is of course food, where you can make some changes on the fly. Transportation is a little more difficult because we've got to sell a vehicle; we've got to replace it with something that is reliable and yet more affordable. That can be challenging to do.
And then housing, of course, is the third a lot more difficult to unwind if you buy too much house. But just be on your guard with those three budget busters: housing, transportation, and food. You know, keep in mind as we're navigating through higher prices, especially with gas prices up and just the inflation that is cumulative that we've experienced the last several years, we've just got to be careful to live within our means. Because as we think about those wise money management principles that we see in God's word, it really begins with spending less than you earn.
Every financial success starts with living within your means, because ultimately that what is what allows you to have margin to be able to fund those goals beyond this month. Anything you're going to do beyond your current monthly spending is going to require you to have some margin that you can either put aside or redirect into other purposes. That all stems from spending less than you earn. Sound simple, obviously more difficult to do, I get that. But you're not going to be able to do it without a plan. You've got to have a budget. You've got to be able to give every dollar a job so that it is aligned with your values.
Because remember, money is a mirror. It ultimately reflects what's most important to us, our values and our priorities. The question is: Does my spending tell the story I desire for my life in light of my values and priorities? In light of what is, in fact, most important to me, am I happy with that story? Or is now a time for me to step back and invite God into my financial life and evaluate my spending and say, "Wait a minute, there are things that I care about—either savings goals that I have and the ability to just enjoy meaningful experiences with my family, the ability to increase my giving, maybe it's a business like April Tam Smith was just talking about that you want to start down the road"—well, all of that is going to come by you having an intentional approach to your finances and your spending, such that we can direct money into perhaps savings that will ultimately be able to translate into those things that are most important to you. But it begins with spending less than we earn.
Second, avoid the use of debt. Now debt is not a sin, but it does rob God of the opportunity to provide. We are pre-committing future earning potential through our borrowing. We're also, in some cases, borrowing for things that are not productive in the sense that they're depreciating assets that we're borrowing for. When possible, we only want to borrow for appreciating assets. So think, borrowing for a business, borrowing for a home that's going to appreciate over time, not borrowing for lifestyle spending. So be on your guard there: spend less than you earn, avoid the use of debt.
The third is this idea of margin or liquidity, which again, is very important for your savings goals, your longer-term goals beyond the here and now. It's also important for marital communication. You know, the data says that really the three keys to having a healthy relationship around money and marriage to drive toward unity and a shared vision as a couple for money and marriage is first, understanding. Knowing how each of you are wired, what you're bringing to the table, how your parents modeled money management, and what impact that's had on you. All of those things come together, including your temperament, to really shape how you handle and view money today.
Well, as two individuals created uniquely by Creator God, you come to the table with differences. And until we understand that and understand what's underneath the decision-making now, how tightly or loosely you hold money, what you value, what your priorities are, how you think about saving and spending and giving, you're not going to be able to get on the same page unless you really talk through that. That comes from understanding. That's one. Communication is second. But this idea of margin is key to having a healthy relationship with money in marriage.
Next, you've got to set long-term goals, because the longer-term your perspective, the better your decisions today. And then finally, we give generously, because giving breaks the grip of money in our lives and allows us to participate in God's redemptive purposes.
All right, after the break, we're going to take your calls: 800-525-7000.
SEGMENT 4
Rob West: Thanks for joining us today on Faith and Finance here on American Family Radio. We've got some lines open today. We're taking your calls and questions at 800-525-7000. Maybe you've got some debt that you've just been wondering, how do I get rid of it? Perhaps it's old student loan debt, maybe it's credit card debt because of just the increase in expenses? You've been living beyond your means, you've been trying to dial it back, it's just been a struggle, or maybe you've corrected the problem that got the debt in the first place, now you're just wondering how to pay it off, or maybe for you it's investing for the future, trying to get that credit score up, or preparing the next generation, thinking through how we pass wisdom before wealth to the next steward. Whatever your question is today, you can call right now: 800-525-7000. That's 800-525-7000. We'll dive into those questions here in just a moment.
Rob West: Our new field guide number two is due out in the few days: How Do I Prepare the Next Steward: A Guide to Passing on Faith, Virtues, Relationships, and Money, and in that order. One of the exercises we have in the new field guide is this process of identifying your next steward. You know, the next steward will look very different depending on your context. It could be your children, but it could also be organizations or ministries you care deeply about. You know, many of our listeners have made American Family Association their beneficiary of their accounts, others will treat a charity that you love like a child. So maybe you have three children, three heirs, you add the ministry as another child and then leave 25% to each of them. It can look totally different depending on each person's situation. For others, it could be nieces or nephews or stepchildren or causes. But whoever it is, the selection is really personal. It's a process of understanding the best way to not only make that decision—who is the next steward I'm going to entrust what God has entrusted to me—but then thinking through what is the best way to set them up on a thoughtful journey. And you know, we find that helping people really list out who those potential next stewards are, the people and the organizations, and then deciding who do I know best, who do I know least, inviting God into that process through prayer, asking the Lord about the next steward He intends for your wealth, and thinking through not only who they are, but how do you want to invest in them today, how do you want to communicate your plans in a way that will grow the relationships and bless those around them, what actions do you want to start to take as you prepare them now, and and then really who is the wise counsel that you want to bring alongside you. You know, perhaps God has placed the names of people or organizations on your heart, and you need to learn some more about them before deciding. It could be extended family members or an organization you care about, but you aren't close to, and that's the discernment process where you can take some time to get to know them better. We provide in the field guide some discovery questions so you could get to know an organization better or discovery questions to consider individuals that might be your next steward if that's not obvious. But then ultimately, it really comes down to, as you work through each of these issues, making that decision. And then Ron Blue has shared some questions that he proposed in his book Splitting Heirs, where once you've landed on an individual, you might ask, "What's the worst thing that could happen in this transfer, and how likely is it to occur?" You know, with a wayward child, you may say this transfer of assets, financial wealth, could propel them away from the Lord, or in other cases, your ability to provide lavish generosity to an heir may in fact be the thing that causes them to be even more open to the Gospel. What's the best thing that could happen and how likely is that to occur? Now we, of course, can't predict the future of our inheritors and how they will manage it, but we can ask these questions to guide our financial decisions. But ultimately, we need to make that call. It can change over time, but part of our desire is to really help you have a thoughtful and intentional process to not only select that next steward, but to really prepare them and to pass on faith and virtues and relationships and money in that order. The new field guide will be out very soon. We're really excited about putting this in your hands because this is such an important part of our stewardship: selecting and preparing the next steward. All right, let's dive into some questions today. We've got lines open: 800-525-7000, you can call right now. Let's begin with Jamie in Oklahoma, go right ahead.
Jamie: Yes, hi. My husband is retiring from Federal service at the Department of the Interior, National Park Service, and I just kind of need to know some highlighted questions to ask, you know, so that it's kind of like not misunderstood or, you know, the most benefit to us.
Rob West: Okay. And are you talking about questions to his employer about what's going to be available, or are you talking about the conversation that you and he need to have about what this next season might look like?
Jamie: Oh, to the employer, like for example, what happens to the life insurance? What happens to the health insurance, what happens to the accrued sick leave, accrued leave? And so I kind of Googled it, but, you know, you can't really trust Google.
Rob West: Well, it's a great question. I love that you're preparing in this way. I'm sorry, I didn't mean to cut you off, go ahead.
Jamie: Oh no, that's fine. Those are kind of like the main thoughts I was thinking because social security, we talked to them, and we understood that Medicare is the only thing, I mean we have to get it no matter if we were to have a plan, you know, health plan through somebody else, private, you know, and so that's how we understood it. Anyway, I don't think that's right, but, um, so that's one and then the other question was dealing with social security.
Rob West: Sure. Yeah, let me give you a few really key questions to ask HR that relate to his specific situation. I think the first one, Jamie, would be around the pension. And so you would want to ask, "What will my monthly, either if he's in the FERS program or the CSRS, either one, what will that monthly pension be, when will the payments begin, and how long before I receive my full pension instead of the interim payout payments?" Second would be around health insurance, the FEHB. "Can I keep my federal health insurance into retirement?" And you might want to ask, "Do I meet the five-year enrollment requirement, and then and then ultimately, what will my premiums be?" Medicare, you would want to know, um, you know, "How do Medicare parts A and B coordinate with my federal health insurance, and should I enroll in part B now because you want to avoid those penalties by not enrolling as soon as your, um, coverage is no longer in, in place?" And then with life insurance, I, I totally agree, you're going to want to ask if they can, if you can keep the federal life insurance after retirement, but you are going to want to know what it'll cost because you may not need it any longer. You know, with him not working, depending on how the pension is handled, if he passes away before you, you're going to want to know, you know, whether or not that life insurance is necessary, and if it is, because there's still a risk there, if he were to predecease you, which, you know, on average we will, as men, um, you're going to want to know what that will cost you and how it'll affect your budget. And then I agree, on the sick leave, you're going to want to ask, "Will my accumulated sick leave increase my pension calculation?" Generally, that's the way it works. Hang on the line, I want to see if you have any further questions, and we'll be right back, stay with us.
SEGMENT 5
Rob West: Thanks for joining us today on Faith and Finance here on American Family Radio. I'm Rob West. Before the break, we were talking to Jamie, her husband is preparing to retire from federal service, and she's just wondering about the questions she needs to be asking as they prepare for this next chapter. And we talked about everything from her pension, to health insurance, to Medicare, to life insurance, even how unused sick leave will affect his pension, because generally, it increases the pension as creditable service for the pension calculation when it's not paid out in cash. But Jamie, I know you had a question about Social Security and the retroactive benefits. So if he takes Social Security at full retirement age, he'll get his full benefit based on what he was due from his high 35. If he takes retroactive benefits, which the Social Security Administration will allow up to six months of retroactive benefits, that could cause that benefit to decline into the future because, you know, keep in mind you get 8% per year on an increase for every year you wait, and so you could have about a 4% reduction in that check if you essentially claw back six months, which would kind of take the that, you know, increase that they were adding and remove half of it for the last year because he's essentially backing up the start date, versus waiting and starting now, or whenever that point comes, and getting the full amount. Does that make sense?
Jamie: Yeah, because see, I was wondering when she said that, I thought, wait, you know, I didn't ask her at the time, I should have, but where does that money come from, you know, to pay the retroactive if he chooses to choose to go that route?
Rob West: Well, it would just come from the Social Security Trust Fund, just like a combination of that plus the current FICA taxes that are being paid into Social Security is what they use to pay benefits, whether that's current benefits or retroactive, which is available on a one-time basis up to six months.
Jamie: Yeah, and essentially from him, since they probably they might decrease the increase, future increase or something like that, you were saying?
Rob West: Exactly. So, yeah, the longer you wait, the more you'll get, up to age 70, and that's a permanent increase, you know, up to full retirement age, which for most people is 67, you'll get the full benefit that he was entitled to based on his high 35 years of earnings without any reduction. If you take it prior to full retirement age, you get a reduction from that benefit, and then if you wait beyond full retirement age, for every month you wait beyond full retirement age, you'll get 1/12 of 8% per year as a permanent increase up to age 70. So you could get about 24% more per month if he waited until age 70 to take it. Obviously, you'd give up receiving anything from 67 to 70, and so he'd have to live another on average 12 years to be paid back for everything he didn't receive, and then he'd get that 24% higher check plus cost of living adjustments on that amount for the rest of his life, and then you would enjoy that as a survivor's benefit if he predeceases you.
Jamie: Okay, even if I started mine at 62?
Rob West: Yes. So, you each can claim on your own work record. So if you took yours at 62, you would get a permanent decrease of your benefit because you took it early, but then if he passed away, you could move to his survivor's benefit, and they would essentially credit you the difference between your benefit and his, as you take that survivor's benefit.
Jamie: Okay. All right. Well, I really appreciate it, and so, whether or not he chooses to take the retroactive or not, it's kind of like okay depending on our situation.
Rob West: Yeah, absolutely. So I think the key is, you know, you would want to try to, if possible, if you don't need the money, I would probably want to get that monthly check up as high as possible, not take the retroactive benefit, and then, you know, obviously, none of us know when the Lord is going to call us home, but you getting a check that's 4% higher for the rest of your life, you know, over time is going to pay, you know, is going to perform much better for you and and give you the ability to have more into the future, including the cost of living adjustments on top of that. Now, keep in mind, let me just say one other thing, is that you taking your social security early is going to reduce the survivor benefit, you know, down the road. So you just need to be, you know, aware of, you know, who's the higher earner, and then, you know, ultimately, what survivor benefit you're going to have based on whether either of you took it early. So I think it's important to sit down with Social Security at some point and just kind of run these scenarios, and you can schedule an in-person visit to be able to look at each of your records, and they can give you all the actual numbers so you can make plans for now and in the future. Jamie, we appreciate your call today. Lord bless you. Thanks for being on the program. Let's go to Ohio, Alan, how can we help?
Alan: Yes. Yes, good morning, Ron. How are you?
Rob West: I'm doing well, sir. Thank you for calling.
Alan: Good. I'm calling with the question. My wife, our oldest daughter still, my oldest daughter still lives at home, and it's my wife and myself. Our oldest son passed away in December of last year, and our youngest son got married last October, and they're, he and his wife are currently renting, and we were talking and looking at the option of a multigenerational home, renting right now for for right now, but looking at my son and his wife moving in with us, and we're looking at a space of six months for us to get everything together and to be able to transfer into a larger multi-family home. I want to get your insight, any wisdom or directives that you can give us concerning this prospect.
Rob West: Sure. Yeah, thanks Alan. It's a great question, and more and more people are considering this option. Did I hear you say this larger multi-gen house, you all would be moving into together, but it would be a rental, is that right, or would you be buying something together?
Alan: Right now, it will be a rental. Hopefully, we may be able to find something that would rent with the option to own.
Rob West: Okay. Yeah. Great. So, you know, I think the keys here in terms of, you know, what you would be considering, you know, the benefit is you've obviously got the shared expenses, so in this case, splitting the rent, the utilities, other costs can save everyone money. It allows for family support, so living together provides obviously the companionship and just the ability to do life together as a family, it can help younger family members, so like your newly married child, could save money toward buying their own home at some point down the road, and also gives you some flexibility without a long-term commitment through the rental. Obviously, the downside would be the the loss of privacy, just making sure you understand and have really clear expectations around who's going to pay what, and what happens if someone can't contribute, you know, what about marriage boundaries, especially for the newly married couple, and them being having, you know, having some space to establish their own household, the rental commitment, so a larger home, you know, could become unaffordable if one family member moves out, so we just need to think about kind of those off-ramps and having really clear expectations because, you know, if they decided they wanted to go out and get their own place, then all of a sudden you'd be left with a home that was beyond your needs and could even be difficult for you all to sustain financially. So I think the questions you need to answer, you know, are really about first affordability: can you afford the entire rent if they were to move out; the timeline, you know, is this a one-year arrangement or is it a long-term plan? You know, I would suggest maybe you start with a 12-month lease, and give you all a chance just to kind of work through this and make sure it's a good fit for everybody before making a longer-term commitment. Privacy: does the house provide separate living spaces and even, you know, entrances, things like that, so you all have the ability to kind of do your own thing even though you're, you know, have this benefit of being in a shared environment with the shared expenses? And then just real clarity around, you know, what the expenses will be and who's going to take care of them. So how will the rent, the utilities, the groceries, and the maintenance be divided among you? Let's just get that in writing and, you know, be really clear about that so we don't have unmet expectations that leads to relational strain. And then the exit strategy: what happens if it doesn't work out, who signs the lease? And then family relationships, I would say, you know, is everyone genuinely comfortable with the arrangement, including your son's new spouse? Just make sure there's real open and honest dialogue there. But it can be a great temporary solution, it could even be a longer-term solution, but I would want that trial period first to ensure that it is something that's going to be a good fit for everyone involved. Does that make sense?
Alan: Yes, sir. Yes, it certainly does. Certainly does. Thank you, information and options.
Rob West: Excellent, Alan. Absolutely, you sound like a wonderful dad, and if I can help further along the way, don't hesitate to reach out. Lord bless you, sir. Monte in Texas, I apologize we didn't get to your call today. We'd love to get you on the program. Let's see if we can perhaps get you scheduled to be on with us tomorrow. We appreciate your call today. That's going to do it for us. Big thanks to my team today: Patty, Devin, Michael, Taylor, and everybody here at FaithFi that makes this possible. Let me encourage you, FaithFi is listener supported, which just simply means we bring you this program every day and all the resources because of your generous support. We'd love to invite you to become a FaithFi partner. That will ensure you get all of the new resources, including our field guides, our studies, our devotionals, and four issues of our incredible magazine, Faithful Steward. We would love to hear from you when you head to faithfi.com/give. You can learn all about the partner program. Again, that website: faithfi.com/give. Lord bless you. Come back and join us tomorrow. We'll see you then. Bye-bye.
Rob West: A job can be more than a paycheck. It can open doors to dignity and Kingdom impact. Hi, I'm Rob West. Work isn't just about earning a living. In God's hands, it can transform lives and strengthen entire communities. April Tam Smith joins us today to share how one mission-driven restaurant is using work, hospitality, and generosity to make an eternal difference. 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 journey.
Rob West: April Tam Smith works alongside her husband, Graham, in New York City's financial district. Together with a group of like-minded partners, they're co-founders of a unique nonprofit restaurant, PS Kitchen in Times Square, that uses hospitality and business to serve others' needs. April, what a treat to have you on the program today.
April Tam Smith: Thank you so much for having me. Just talking with you brings a big smile on my face. Thank you.
Rob West: Oh, thank you, we're so thrilled. April, let's back up and go to the beginning. I want you to share with us what first inspired you to pursue this really unique approach to radical generosity.
April Tam Smith: Yeah, so I think it was a really God-planned idea early on. When we were first married, we spent a little bit of time just being very involved in different social businesses. We actually spent part of our time in Haiti for our honeymoon, and we spent part just volunteering for a traditional nonprofit, helping people get hearing aids and different health services. It was really meaningful. But what really, really impacted me, though, was the idea of social businesses, where you have these sustainable organisms that just continue to generate profits, create jobs. And one thing that I would always hang on to is just this memory, this visual of the people walking inside this industrial park in Haiti, and you just see this dignity and mission that they have. And that's when it really planted the seed of, like, wow, how cool it is to create jobs and how cool it is to like do, not only financial giving, but also giving opportunities and dignity, and just all these things that really come with meaningful employment. And that was the beginning of PS Kitchen.
Rob West: Oh, I love that, and it really is a beautiful picture of whole-life generosity, and I love that it's not just financial, it includes so much more than that. Now, we're going to back up even further to when you and Graham first met. It was at a Bible study. I'd love for you to share a little bit of that story. What drew you guys together?
April Tam Smith: Sure, sure. Gosh, my four-year-old one day when he hears it, he will be so embarrassed. Yes, we met at a Bible study, of course, Redeemer Bible study, as probably a million couples in New York, you'll find. And it was just really, really cool about Redeemer and how they really, yeah, created so many marriages out of it. But we met at a Bible study, I was leading it, and one of the first things that came up was I started talking non-stop about generous giving and these videos, and just quoting so many different things from what I've learned from their blog and the website, and I was like making everybody watch all the videos, and just guessing it after us, the leader. And it was really cool that he then later reached out to me and was like, "Wait, what's this website you kept talking about?" And that was really the start of realizing we had so much in common. He'd just come back from living in Uganda for two months. I'd already been to Haiti a bunch. I actually was like sharing a room with a single mom from Haiti and her four-year-old because I wanted them to move in with me when they were in between apartments. And we were just kind of living this like kind of parallel lives and working in our respective investment banks, but maybe having something that's slightly less conventional, and that was the start of a lot of really, really good conversations.
Rob West: Well, it's incredible, and obviously the Lord joined the two of you together and you started dating, and then you got married, and you had to begin to put your finances together, and I'm sure that was an adventure. Well, when we come back, April, we're going to dive into the business. We're going to talk about PS Kitchen and how you went from a personal vision to a thriving business, and how you've done this right there in Times Square, and just all the details. I know our listeners are so excited just to hear what you have created and how you're serving and loving people through this business. So, much more to come, folks, just around the corner. Our guest today, April Tam Smith, and we'll be back with more right after this.
SEGMENT 2
Rob West: Work done God's way doesn't just make a living; it makes a difference. We're joined today by April Tam Smith. She works alongside her husband Graham in New York City's financial district, and together with a group of like-minded partners, they're co-founders of a really unique nonprofit restaurant. It's right there in Times Square. It's called PS Kitchen, and they use hospitality and business to serve and love people. April, I want to dig into this business. I'm so excited to unpack it. First, what did you have to learn as you went from this personal vision into a real business there in New York City?
April Tam Smith: Literally everything. We were we were just nuts. We were kids who were nuts, and I'm really glad that God put us in these crazy, completely over-your-ski situations, because now that we're still standing 12 years later, I know that it is absolutely nothing short of an actual miracle. But yes, it was it was really everything. I've never been in food business. Obviously, I've been in equity derivatives for 21 years. I've never even really been a foodie, but my passion and the only thing that I kind of knew going into it was I wanted to start a social business, which means that it's a business that it's really not for me and hopefully as many aspects of it as possible could be creative and innovative, where it's giving back in various ways. So the food that it served, the people that we hire, the finances, just everything in between, we were trying to be as creative as possible of how do we use this business and how do we use the space.
Rob West: Yeah, I'm sure people are wondering what it looks like practically, because nonprofit and restaurant don't normally go together, and obviously you're doing it to serve great, creative food, but it's also got to be a great product that people love. So at its core, what is PS Kitchen?
April Tam Smith: Yeah, thank you for asking. So the idea is we wanted to start a beautiful restaurant with innovative, amazing food that hopefully people would want to come no matter what, which is why I named it PS. It's the idea that you might come in and you just see a beautiful space, really delicious food, and way later, when you're done with the meal, or you hear from a friend, you're seeing at the very bottom of our menu is that, PS, we employ people who might need a second chance; PS, we are actually using all plant-based food; PS, this is what we do with all of our profits. And it's just meant to be something that it's already attracting you and inviting you in, but it's also secretly or not so secretly doing hopefully a lot of good for the world while you're dining there. And that's the idea. We seated it with some friends with our own money, and other friends come in along the way, and over the years, essentially 100% of the ownership have been donated to 501(c)(3) so that it's really meant to be us just being a vehicle that made this thing happen. And that's why we call ourselves as co-founders and not co-owners.
Rob West: Well, you could have tucked it away in some random location. Instead, April, you put it right there on 48th Street in Times Square. How did you choose that location?
April Tam Smith: Yeah, um, so it's very intentional. I've been really blessed by amazing work relationships over the years where I felt like I always could be very authentic about my passion and who I am. You know, over the years, I've had coworkers come with me to Haiti, South Africa; I've had coworkers and clients come with me into prison; um, various colleagues join me in funding schools together in Congo—we've done several schools—and ultimately, I just keep sharing this desire or interest of like, "Man, I want to get more involved, or I want to give back more, uh, but maybe I don't necessarily have all the time or the mental space." So the idea was starting something that's so easily, conveniently located that even say my colleagues wanted to have a meal and actually gift back while they're eating, and not really taking a lot out of their time or their work, and same thing for Broadway goers. If you're already in the space and you're looking for food, um, it's a really good way that you are just doing multiple things at once, and and that's the idea.
Rob West: Now, hiring is central to your mission, so tell us a little bit about how you find these team members and then how you support them once they join your team.
April Tam Smith: Yeah. So another part of the inspiration of this business is Dr. Muhammad Yunus, uh, who has become a mentor and just an inspiration for PS Kitchen. As you may know, he was awarded the Nobel Peace Prize in 2006 for creating microfinance, but actually his next big innovation was the idea of social businesses, and he always said, "When you see a problem, create a business to solve it." And I just love that. So that's really was another thing that instigated the idea of PS. If I continue to volunteer for, um, various anti-trafficking organizations, or I'm volunteering in prison, and I'm sitting with someone and feeling this connection as humans, and all that they're saying—just like the people that I maybe are walking alongside with Haiti—is that I just want a job. I want that dignity, and I want to provide for my family. And I feel like that became such a big goal in my head, that when I started PS Kitchen, that was almost like these are the organizations I built PS for, you know? It wasn't so much like, "Now that I've built it, let me go find the organizations that I can now hire from." I mean, the the demand, it's it's endless. I I wish we had more, you know, seats and wish we had even more opening, uh, because it's such a big part of the mission. We have since opening hired over 150 individuals from various partner organizations like power mission, restore, defy, etc., etc. Uh, but we really want to do more, and that is like such a big, big part of the mission.
Rob West: Incredible. I can't help but think with your contagious personality and the joy that just oozes out of you, that there's some people listening today where maybe they have a passion or a vision for a mission-driven business. What would you say to them? What would be the first thing that they should do?
April Tam Smith: Oh, so good. Um, hey, I I love it. It's funny when I first brought this up to somebody who helped me start PS from the logistics and actual starting the whole business, he said, "Please don't do this." Uh, but if you insist on losing all your money and do something like this, please let me help you. Um, I think understandably this has to be something that is really through prayer and knowing that's what you're called to. But the cool thing about, I think, starting social businesses is that you really are not alone. Even though we founded it and we had to put a lot of our own savings up front, throughout the journey, I just felt like such an abundance and outpouring of support and generosity from everybody. The fact that we survived COVID when so many restaurants in New York City closed, and the government is allowing you to walk out on your lease, and just all these things that would make you make the practical decision of closing it, it it really was such an outpouring of people supporting us, and that's what got us to where we are today. So, don't feel like you have to do this alone.
Rob West: That's incredible. Unfortunately, we're out of time, April. Thanks so much for sharing your story.
April Tam Smith: Thank you.
Rob West: Folks, next time you're in Times Square, check out PS Kitchen. Back with your calls after this: 800-525-7000. Stick around.
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 looking forward to taking your calls and questions today at 800-525-7000. That's 800-525-7000. The team is standing by, the lines are open, and we will dive into those questions here in just a moment.
So, as you're thinking through what's going on in your financial life, perhaps you're thinking about that debt you're trying to pay off, or perhaps it's, when do I take Social Security? When is the right time for me? Or what might this next season look like? Perhaps you're wanting to give more and you're just wondering, can I afford to do that? And is that wise? How do I give more effectively?
Whatever you're wrestling with today, we'd love to help you think through it in light of biblical wisdom. Again, that number to call with lines open, and we'll dive into these questions here in just a moment: 800-525-7000. Again, that's 800-525-7000.
In the news today, Americans are stretching out their car loans to make vehicles more affordable, but monthly payments continue to climb. According to a new report from Edmunds, a record 25.5% of financed new car purchases in the third quarter involved loans lasting seven years or longer. Meanwhile, the average monthly payment reached a record $787. This is the average. And more than one in five buyers now pays at least $1,000 a month.
The average amount financed also climbed to nearly $44,700, with buyers paying an average of almost $10,000 in interest over the life of their loans. Longer loan terms may reduce monthly payments, but they also increase borrowing costs and the risk of owing more than the vehicle is worth, otherwise known as being "upside down". In fact, nearly 30% of vehicles traded toward a new car purchase in the second quarter had negative equity.
Now, don't let an affordable monthly payment convince you to buy more car than you can afford. Consider a reliable used vehicle, choose a less expensive model, or save for a larger down payment. The goal isn't just to afford the payment; it's to afford the car.
So be on your guard there. This is, of course, one of the three big budget busters that we need to be careful to watch. The easiest of the three to dial back, if your spending is out of line, is of course food, where you can make some changes on the fly. Transportation is a little more difficult because we've got to sell a vehicle; we've got to replace it with something that is reliable and yet more affordable. That can be challenging to do.
And then housing, of course, is the third a lot more difficult to unwind if you buy too much house. But just be on your guard with those three budget busters: housing, transportation, and food. You know, keep in mind as we're navigating through higher prices, especially with gas prices up and just the inflation that is cumulative that we've experienced the last several years, we've just got to be careful to live within our means. Because as we think about those wise money management principles that we see in God's word, it really begins with spending less than you earn.
Every financial success starts with living within your means, because ultimately that what is what allows you to have margin to be able to fund those goals beyond this month. Anything you're going to do beyond your current monthly spending is going to require you to have some margin that you can either put aside or redirect into other purposes. That all stems from spending less than you earn. Sound simple, obviously more difficult to do, I get that. But you're not going to be able to do it without a plan. You've got to have a budget. You've got to be able to give every dollar a job so that it is aligned with your values.
Because remember, money is a mirror. It ultimately reflects what's most important to us, our values and our priorities. The question is: Does my spending tell the story I desire for my life in light of my values and priorities? In light of what is, in fact, most important to me, am I happy with that story? Or is now a time for me to step back and invite God into my financial life and evaluate my spending and say, "Wait a minute, there are things that I care about—either savings goals that I have and the ability to just enjoy meaningful experiences with my family, the ability to increase my giving, maybe it's a business like April Tam Smith was just talking about that you want to start down the road"—well, all of that is going to come by you having an intentional approach to your finances and your spending, such that we can direct money into perhaps savings that will ultimately be able to translate into those things that are most important to you. But it begins with spending less than we earn.
Second, avoid the use of debt. Now debt is not a sin, but it does rob God of the opportunity to provide. We are pre-committing future earning potential through our borrowing. We're also, in some cases, borrowing for things that are not productive in the sense that they're depreciating assets that we're borrowing for. When possible, we only want to borrow for appreciating assets. So think, borrowing for a business, borrowing for a home that's going to appreciate over time, not borrowing for lifestyle spending. So be on your guard there: spend less than you earn, avoid the use of debt.
The third is this idea of margin or liquidity, which again, is very important for your savings goals, your longer-term goals beyond the here and now. It's also important for marital communication. You know, the data says that really the three keys to having a healthy relationship around money and marriage to drive toward unity and a shared vision as a couple for money and marriage is first, understanding. Knowing how each of you are wired, what you're bringing to the table, how your parents modeled money management, and what impact that's had on you. All of those things come together, including your temperament, to really shape how you handle and view money today.
Well, as two individuals created uniquely by Creator God, you come to the table with differences. And until we understand that and understand what's underneath the decision-making now, how tightly or loosely you hold money, what you value, what your priorities are, how you think about saving and spending and giving, you're not going to be able to get on the same page unless you really talk through that. That comes from understanding. That's one. Communication is second. But this idea of margin is key to having a healthy relationship with money in marriage.
Next, you've got to set long-term goals, because the longer-term your perspective, the better your decisions today. And then finally, we give generously, because giving breaks the grip of money in our lives and allows us to participate in God's redemptive purposes.
All right, after the break, we're going to take your calls: 800-525-7000.
SEGMENT 4
Rob West: Thanks for joining us today on Faith and Finance here on American Family Radio. We've got some lines open today. We're taking your calls and questions at 800-525-7000. Maybe you've got some debt that you've just been wondering, how do I get rid of it? Perhaps it's old student loan debt, maybe it's credit card debt because of just the increase in expenses? You've been living beyond your means, you've been trying to dial it back, it's just been a struggle, or maybe you've corrected the problem that got the debt in the first place, now you're just wondering how to pay it off, or maybe for you it's investing for the future, trying to get that credit score up, or preparing the next generation, thinking through how we pass wisdom before wealth to the next steward. Whatever your question is today, you can call right now: 800-525-7000. That's 800-525-7000. We'll dive into those questions here in just a moment.
Rob West: Our new field guide number two is due out in the few days: How Do I Prepare the Next Steward: A Guide to Passing on Faith, Virtues, Relationships, and Money, and in that order. One of the exercises we have in the new field guide is this process of identifying your next steward. You know, the next steward will look very different depending on your context. It could be your children, but it could also be organizations or ministries you care deeply about. You know, many of our listeners have made American Family Association their beneficiary of their accounts, others will treat a charity that you love like a child. So maybe you have three children, three heirs, you add the ministry as another child and then leave 25% to each of them. It can look totally different depending on each person's situation. For others, it could be nieces or nephews or stepchildren or causes. But whoever it is, the selection is really personal. It's a process of understanding the best way to not only make that decision—who is the next steward I'm going to entrust what God has entrusted to me—but then thinking through what is the best way to set them up on a thoughtful journey. And you know, we find that helping people really list out who those potential next stewards are, the people and the organizations, and then deciding who do I know best, who do I know least, inviting God into that process through prayer, asking the Lord about the next steward He intends for your wealth, and thinking through not only who they are, but how do you want to invest in them today, how do you want to communicate your plans in a way that will grow the relationships and bless those around them, what actions do you want to start to take as you prepare them now, and and then really who is the wise counsel that you want to bring alongside you. You know, perhaps God has placed the names of people or organizations on your heart, and you need to learn some more about them before deciding. It could be extended family members or an organization you care about, but you aren't close to, and that's the discernment process where you can take some time to get to know them better. We provide in the field guide some discovery questions so you could get to know an organization better or discovery questions to consider individuals that might be your next steward if that's not obvious. But then ultimately, it really comes down to, as you work through each of these issues, making that decision. And then Ron Blue has shared some questions that he proposed in his book Splitting Heirs, where once you've landed on an individual, you might ask, "What's the worst thing that could happen in this transfer, and how likely is it to occur?" You know, with a wayward child, you may say this transfer of assets, financial wealth, could propel them away from the Lord, or in other cases, your ability to provide lavish generosity to an heir may in fact be the thing that causes them to be even more open to the Gospel. What's the best thing that could happen and how likely is that to occur? Now we, of course, can't predict the future of our inheritors and how they will manage it, but we can ask these questions to guide our financial decisions. But ultimately, we need to make that call. It can change over time, but part of our desire is to really help you have a thoughtful and intentional process to not only select that next steward, but to really prepare them and to pass on faith and virtues and relationships and money in that order. The new field guide will be out very soon. We're really excited about putting this in your hands because this is such an important part of our stewardship: selecting and preparing the next steward. All right, let's dive into some questions today. We've got lines open: 800-525-7000, you can call right now. Let's begin with Jamie in Oklahoma, go right ahead.
Jamie: Yes, hi. My husband is retiring from Federal service at the Department of the Interior, National Park Service, and I just kind of need to know some highlighted questions to ask, you know, so that it's kind of like not misunderstood or, you know, the most benefit to us.
Rob West: Okay. And are you talking about questions to his employer about what's going to be available, or are you talking about the conversation that you and he need to have about what this next season might look like?
Jamie: Oh, to the employer, like for example, what happens to the life insurance? What happens to the health insurance, what happens to the accrued sick leave, accrued leave? And so I kind of Googled it, but, you know, you can't really trust Google.
Rob West: Well, it's a great question. I love that you're preparing in this way. I'm sorry, I didn't mean to cut you off, go ahead.
Jamie: Oh no, that's fine. Those are kind of like the main thoughts I was thinking because social security, we talked to them, and we understood that Medicare is the only thing, I mean we have to get it no matter if we were to have a plan, you know, health plan through somebody else, private, you know, and so that's how we understood it. Anyway, I don't think that's right, but, um, so that's one and then the other question was dealing with social security.
Rob West: Sure. Yeah, let me give you a few really key questions to ask HR that relate to his specific situation. I think the first one, Jamie, would be around the pension. And so you would want to ask, "What will my monthly, either if he's in the FERS program or the CSRS, either one, what will that monthly pension be, when will the payments begin, and how long before I receive my full pension instead of the interim payout payments?" Second would be around health insurance, the FEHB. "Can I keep my federal health insurance into retirement?" And you might want to ask, "Do I meet the five-year enrollment requirement, and then and then ultimately, what will my premiums be?" Medicare, you would want to know, um, you know, "How do Medicare parts A and B coordinate with my federal health insurance, and should I enroll in part B now because you want to avoid those penalties by not enrolling as soon as your, um, coverage is no longer in, in place?" And then with life insurance, I, I totally agree, you're going to want to ask if they can, if you can keep the federal life insurance after retirement, but you are going to want to know what it'll cost because you may not need it any longer. You know, with him not working, depending on how the pension is handled, if he passes away before you, you're going to want to know, you know, whether or not that life insurance is necessary, and if it is, because there's still a risk there, if he were to predecease you, which, you know, on average we will, as men, um, you're going to want to know what that will cost you and how it'll affect your budget. And then I agree, on the sick leave, you're going to want to ask, "Will my accumulated sick leave increase my pension calculation?" Generally, that's the way it works. Hang on the line, I want to see if you have any further questions, and we'll be right back, stay with us.
SEGMENT 5
Rob West: Thanks for joining us today on Faith and Finance here on American Family Radio. I'm Rob West. Before the break, we were talking to Jamie, her husband is preparing to retire from federal service, and she's just wondering about the questions she needs to be asking as they prepare for this next chapter. And we talked about everything from her pension, to health insurance, to Medicare, to life insurance, even how unused sick leave will affect his pension, because generally, it increases the pension as creditable service for the pension calculation when it's not paid out in cash. But Jamie, I know you had a question about Social Security and the retroactive benefits. So if he takes Social Security at full retirement age, he'll get his full benefit based on what he was due from his high 35. If he takes retroactive benefits, which the Social Security Administration will allow up to six months of retroactive benefits, that could cause that benefit to decline into the future because, you know, keep in mind you get 8% per year on an increase for every year you wait, and so you could have about a 4% reduction in that check if you essentially claw back six months, which would kind of take the that, you know, increase that they were adding and remove half of it for the last year because he's essentially backing up the start date, versus waiting and starting now, or whenever that point comes, and getting the full amount. Does that make sense?
Jamie: Yeah, because see, I was wondering when she said that, I thought, wait, you know, I didn't ask her at the time, I should have, but where does that money come from, you know, to pay the retroactive if he chooses to choose to go that route?
Rob West: Well, it would just come from the Social Security Trust Fund, just like a combination of that plus the current FICA taxes that are being paid into Social Security is what they use to pay benefits, whether that's current benefits or retroactive, which is available on a one-time basis up to six months.
Jamie: Yeah, and essentially from him, since they probably they might decrease the increase, future increase or something like that, you were saying?
Rob West: Exactly. So, yeah, the longer you wait, the more you'll get, up to age 70, and that's a permanent increase, you know, up to full retirement age, which for most people is 67, you'll get the full benefit that he was entitled to based on his high 35 years of earnings without any reduction. If you take it prior to full retirement age, you get a reduction from that benefit, and then if you wait beyond full retirement age, for every month you wait beyond full retirement age, you'll get 1/12 of 8% per year as a permanent increase up to age 70. So you could get about 24% more per month if he waited until age 70 to take it. Obviously, you'd give up receiving anything from 67 to 70, and so he'd have to live another on average 12 years to be paid back for everything he didn't receive, and then he'd get that 24% higher check plus cost of living adjustments on that amount for the rest of his life, and then you would enjoy that as a survivor's benefit if he predeceases you.
Jamie: Okay, even if I started mine at 62?
Rob West: Yes. So, you each can claim on your own work record. So if you took yours at 62, you would get a permanent decrease of your benefit because you took it early, but then if he passed away, you could move to his survivor's benefit, and they would essentially credit you the difference between your benefit and his, as you take that survivor's benefit.
Jamie: Okay. All right. Well, I really appreciate it, and so, whether or not he chooses to take the retroactive or not, it's kind of like okay depending on our situation.
Rob West: Yeah, absolutely. So I think the key is, you know, you would want to try to, if possible, if you don't need the money, I would probably want to get that monthly check up as high as possible, not take the retroactive benefit, and then, you know, obviously, none of us know when the Lord is going to call us home, but you getting a check that's 4% higher for the rest of your life, you know, over time is going to pay, you know, is going to perform much better for you and and give you the ability to have more into the future, including the cost of living adjustments on top of that. Now, keep in mind, let me just say one other thing, is that you taking your social security early is going to reduce the survivor benefit, you know, down the road. So you just need to be, you know, aware of, you know, who's the higher earner, and then, you know, ultimately, what survivor benefit you're going to have based on whether either of you took it early. So I think it's important to sit down with Social Security at some point and just kind of run these scenarios, and you can schedule an in-person visit to be able to look at each of your records, and they can give you all the actual numbers so you can make plans for now and in the future. Jamie, we appreciate your call today. Lord bless you. Thanks for being on the program. Let's go to Ohio, Alan, how can we help?
Alan: Yes. Yes, good morning, Ron. How are you?
Rob West: I'm doing well, sir. Thank you for calling.
Alan: Good. I'm calling with the question. My wife, our oldest daughter still, my oldest daughter still lives at home, and it's my wife and myself. Our oldest son passed away in December of last year, and our youngest son got married last October, and they're, he and his wife are currently renting, and we were talking and looking at the option of a multigenerational home, renting right now for for right now, but looking at my son and his wife moving in with us, and we're looking at a space of six months for us to get everything together and to be able to transfer into a larger multi-family home. I want to get your insight, any wisdom or directives that you can give us concerning this prospect.
Rob West: Sure. Yeah, thanks Alan. It's a great question, and more and more people are considering this option. Did I hear you say this larger multi-gen house, you all would be moving into together, but it would be a rental, is that right, or would you be buying something together?
Alan: Right now, it will be a rental. Hopefully, we may be able to find something that would rent with the option to own.
Rob West: Okay. Yeah. Great. So, you know, I think the keys here in terms of, you know, what you would be considering, you know, the benefit is you've obviously got the shared expenses, so in this case, splitting the rent, the utilities, other costs can save everyone money. It allows for family support, so living together provides obviously the companionship and just the ability to do life together as a family, it can help younger family members, so like your newly married child, could save money toward buying their own home at some point down the road, and also gives you some flexibility without a long-term commitment through the rental. Obviously, the downside would be the the loss of privacy, just making sure you understand and have really clear expectations around who's going to pay what, and what happens if someone can't contribute, you know, what about marriage boundaries, especially for the newly married couple, and them being having, you know, having some space to establish their own household, the rental commitment, so a larger home, you know, could become unaffordable if one family member moves out, so we just need to think about kind of those off-ramps and having really clear expectations because, you know, if they decided they wanted to go out and get their own place, then all of a sudden you'd be left with a home that was beyond your needs and could even be difficult for you all to sustain financially. So I think the questions you need to answer, you know, are really about first affordability: can you afford the entire rent if they were to move out; the timeline, you know, is this a one-year arrangement or is it a long-term plan? You know, I would suggest maybe you start with a 12-month lease, and give you all a chance just to kind of work through this and make sure it's a good fit for everybody before making a longer-term commitment. Privacy: does the house provide separate living spaces and even, you know, entrances, things like that, so you all have the ability to kind of do your own thing even though you're, you know, have this benefit of being in a shared environment with the shared expenses? And then just real clarity around, you know, what the expenses will be and who's going to take care of them. So how will the rent, the utilities, the groceries, and the maintenance be divided among you? Let's just get that in writing and, you know, be really clear about that so we don't have unmet expectations that leads to relational strain. And then the exit strategy: what happens if it doesn't work out, who signs the lease? And then family relationships, I would say, you know, is everyone genuinely comfortable with the arrangement, including your son's new spouse? Just make sure there's real open and honest dialogue there. But it can be a great temporary solution, it could even be a longer-term solution, but I would want that trial period first to ensure that it is something that's going to be a good fit for everyone involved. Does that make sense?
Alan: Yes, sir. Yes, it certainly does. Certainly does. Thank you, information and options.
Rob West: Excellent, Alan. Absolutely, you sound like a wonderful dad, and if I can help further along the way, don't hesitate to reach out. Lord bless you, sir. Monte in Texas, I apologize we didn't get to your call today. We'd love to get you on the program. Let's see if we can perhaps get you scheduled to be on with us tomorrow. We appreciate your call today. That's going to do it for us. Big thanks to my team today: Patty, Devin, Michael, Taylor, and everybody here at FaithFi that makes this possible. Let me encourage you, FaithFi is listener supported, which just simply means we bring you this program every day and all the resources because of your generous support. We'd love to invite you to become a FaithFi partner. That will ensure you get all of the new resources, including our field guides, our studies, our devotionals, and four issues of our incredible magazine, Faithful Steward. We would love to hear from you when you head to faithfi.com/give. You can learn all about the partner program. Again, that website: faithfi.com/give. Lord bless you. Come back and join us tomorrow. We'll see you then. Bye-bye.
A job can be more than a paycheck—it can open doors to dignity and Kingdom impact. Work isn’t just about earning a living. In God’s hands, work becomes a way to transform lives and strengthen entire communities. On this Faith & Finance on AFR, April Tam Smith joins Rob West to share how cofounders of one mission-driven restaurant use work, hospitality, and generosity to make an eternal difference. Then, it’s on to calls.
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