Rob West Proverbs 18:11 says, "The wealth of the rich is their fortified city; they imagine it a wall too high to scale." I am >> Rob West. Money can provide real protection, but it can also give us a false sense of security. In 1 Samuel 25, a wealthy man named Nabal learned just how dangerous that can be. We'll talk about that today, and then it's under your calls at 800-525-7000. This is Faith and Finance on American Family Radio, biblical wisdom for your financial decisions.
Let's go back to 1 Samuel 25. Nabal was extremely wealthy, owning 3,000 sheep and 1,000 goats. His wife, Abigail, is described as intelligent and discerning, but Nabal himself was harsh and badly behaved. As the story unfolds, we see how much confidence he placed in his possessions and status. At the time, David was still fleeing from King Saul. While David and his men were living in the wilderness, they spent time near Nabal's shepherds. Rather than taking advantage of them, David's men protected them. Later, one of Nabal's servants told Abigail that David's men had been very good to them and had served as a wall around them day and night. Then came sheep shearing season, a time of celebration and abundance. David sent several young men to Nabal with a respectful request: would he share some provisions with David and his men? It was not unreasonable; David's men had helped protect Nabal's workers and livestock, and now David was simply asking him to share from his abundance. But Nabal's answer revealed his heart. "Who is David?" he asked. "Who is the son of Jesse?" In other words, why should I owe you anything? Nabal had plenty, but his abundance produced no gratitude. It had produced arrogance, and suddenly, Proverbs 18:11 becomes remarkably vivid. Nabal had built his own fortified city of wealth and status, but remember how the proverb ends: "They imagine it a wall too high to scale." Notice that last phrase, "they imagine it." Wealth really can provide a measure of protection, savings can create margin, insurance can transfer risk, wise planning can prepare us for trouble. Scripture commends prudence. The danger comes when practical security becomes ultimate security. Nabal seems to have believed that his status, possessions, and household made him untouchable. Yet while he feasted like a king, David prepared to come against him with armed men. The wall Nabal imagined was protecting him was not nearly as strong as he thought, and that's where Abigail enters the story. When she learned what happened, she acts quickly. She prepares food, goes out to meet David, and approaches him with remarkable humility and wisdom. She acknowledges the danger, urges David not to shed blood unnecessarily, and reminds him that the Lord will establish his future. Her wisdom prevents a disaster. The contrast could hardly be sharper. Nabal had wealth but lacked wisdom. Abigail had humility, discernment, and a clear awareness that their household was not beyond danger. And that raises an important question for us: What are we asking money to do for us? It is good to save, invest wisely, carry appropriate insurance, build an emergency fund, prepare for retirement, and provide for your family, but none of those things can bear the weight of becoming our ultimate security. A strong balance sheet can't guarantee tomorrow. A diversified portfolio can't prevent every loss. That doesn't make those things bad; it simply means they're limited. Paul makes a similar point in 1 Timothy 6:17, telling the rich not to set their hope on the uncertainty of riches, but on God, who richly provides us with everything to enjoy. That's the biblical balance: enjoy God's provision, manage it wisely, use it to provide, save, give, and prepare, but just don't confuse the gift with the giver. And remember, this temptation isn't limited to people with great wealth. Whether we have a little or a lot, any of us can start believing that if we could just reach a certain number, earn a certain salary, eliminate every debt, or build a large enough account, then we would finally be safe. But financial wisdom can never remove our need for trust in our provider. So yes, build margin, plan carefully, but hold it all with humility because ultimately, we're not in control. Everything we have comes from God, belongs to God, and is sustained by God. I hope that's an encouragement to you. And before we take our first break, let me also remind you, there's a great wealth of resources waiting for you at faithfi.com. You'll find more about the FaithFi app, which can help you manage your budget and stay on track, you'll find all of our great content, and you can jump into the FaithFi community. Again, it's all at faithfi.com. All right, back with your questions after this: 800-525-7000. Stick around.
SEGMENT 2
Rob West Thanks for joining us today on Faith and Finance, here on American Family Radio. Well, we're live, we're taking your calls and questions today to help you apply biblical wisdom to your financial decisions. So if you've got a question, now's the time to call 800-525-7000. That's 800-525-7000.
Do you wonder periodically how your faith intersects with your financial decisions? Do you have things on your mind as you give, save, and spend that you're wrestling with? Perhaps you're trying to pay off some debt or balance that budget. I realize that's difficult. Maybe you're investing for the future and wanting to know how to navigate this market, especially as we head toward the midterms. Do you wait on the sidelines? Is now the time to jump in?
Whatever you're wrestling with today, we'd love to help you think about it, but always in view of God's word, because there's 2,300 verses in scripture that deal with money and possessions, and we want to make sure you're applying those principles, the heart of God that we see in his word, to the money decisions you're making. That's our goal each day, to encourage you, to cheer you on, to point you back to God's word, but also to help you make practical decisions and choices.
So now's the time to call, the lines are filling up. So if you have a question, call right now 800-525-7000. We'll dive into those here in just a moment.
Rob West But first, in the news today, a new Federal Reserve survey shows more Americans nearing retirement have money in dedicated retirement accounts, but significant gaps remain. The 2025 survey of consumer finances, released October the 9th, found that nearly 37% of all US households headed by someone ages 55 to 64 had no retirement account savings. That's down from 43% in 2022 according to previous congressional research survey analysts. Among households in that age group with retirement savings, the median account balance was $239,000. The figures don't include other possible sources of retirement support such as traditional pensions or home equity or even social security.
For Christians, these findings are a reminder that preparing for retirement is part of wise stewardship, not a reason for fear. Whether retirement is decades away or just around the corner, it's never too late to evaluate spending, reduce debt, and save what you can while trusting God as your ultimate provider. I will say, however, though, that we approach retirement differently as Christ followers. I don't think we should buy into the cultural narrative about working until 65 and ceasing all productive work so we can live a life of leisure. There's nothing wrong with rest or even taking a season of sabbatical, but we're in lifetime service to our King.
And in that fourth quarter of life, I submit you have the most in wisdom and experience to invest in your community, in the next generation, as you perhaps reengage in a different way. Maybe it's from retirement to rehire-ment, as you think about that picture of that elder in scripture at the city gate, dispensing wisdom and engaged in discourse and conversation and engaged in ministry and kingdom work, and now maybe with more flexibility financially, you're doing that in a brand new way. We were created to be productive, to be on mission for God through the whole of our life until he calls us home. We don't need to buy into that cultural narrative that we're done and we have nothing to contribute. When we do, well, our health follows and that starts to decline, because that's not the way God wired us. I hope that's an encouragement to you today.
Yes, we need to save, that's good stewardship, but we also need to be thinking about what it looks like in that next season to be open-handed and surrendered to God's purposes.
Rob West All right, we've got some questions holding, we want to dive into those. Every line's full, so let's begin in Ohio today, Carolyn, how can I help?
Carolyn I was wondering, Trump implemented the overtime tax-free income, how is that dealt with? The employer, or when you pay your taxes?
Rob West Yeah, the employee generally claims the overtime tax deduction when filing their federal income tax, Carolyn, not through their employer. So under the new no tax on overtime provision of the One Big Beautiful Bill Act, the employer's responsibility is to report the employee's qualifying overtime compensation on their W-2 or provide the information needed to calculate it. Then the employee's responsibility is to claim the deduction when filing their federal income taxes.
Now with regard to payroll withholding, employers generally continue withholding federal income taxes from overtime pay during the year unless the employee adjusts their form W-4, which means you would likely get that back as a refund when you file. Now, the law, keep in mind, doesn't make all overtime completely tax-free; it creates a federal income tax deduction for qualifying overtime compensation. But again, employers have to report the qualifying overtime separately in a separate box of the W-2, and then you would ultimately claim that tax break when you file your return.
Carolyn Okay, thank you very much.
Rob West All right, thank you, Carolyn. We appreciate your call today.
Rob West Let's head to Georgia and talk to David. David, how can we help?
David Good morning, this is David from Georgia. I appreciate your radio ministry here. I have a question about tithing, and before God, would it be okay or even right to be taken a portion of the tithe and designate it for the pastor's income? And let me qualify this by saying I've been at this church for well over 25 years, and the pastor has no designated income. He doesn't work outside the church; he's full-time in the ministry. And there is nothing in the budget or normally paid out. Basically he's got up and said, "I take nothing out of the tithe, he said I will not touch the tithe." Well, you know, I kind of feel the same way, you know, I don't want to get into the business of designating this much money for the water bill, this much money for the electricity bill, or this that. And yet, I have a real heart for the pastor. I mean, you know, he's like everybody else.
Rob West That's right. Yes, sir. And that's very biblical. Let me give you my thoughts on this here, David, because it's a great question. I think first, scripture clearly teaches that those who devote themselves to gospel ministry are worthy of financial support. 1 Timothy 5:17 and 18 speaks of honoring elders who labor in preaching and teaching. And then the Apostle Paul writes in 1 Corinthians 9 that those who proclaim the gospel should receive their living from the gospel. So there's certainly a biblical basis for supporting an unpaid pastor financially.
I think the question is whether that support should come from what you've designated as your tithe. Now, let's back up. Under the New Testament, Christians aren't given a specific percentage they're required to give. Instead, we're encouraged to give generously, willingly, cheerfully. We see all that in 2 Corinthians 9:7. So my encouragement would be to continue prioritizing your local church in your giving. But if you were moved to support a pastor who serves without compensation, I believe, and this is just my opinion, I believe that's a worthy expression of biblical generosity.
I'd also encourage you to consider whether that gift could be made through the church, which provides accountability and transparency. You'd have to have a conversation with them about that; they may or may not be willing to do that as a designated gift. But here's what I would say: ultimately, giving isn't about satisfying a legal requirement, it's about faithfully stewarding God's resources to support his church, care for those who minister, and advance the gospel. Ultimately, that's a decision between you and the Lord. David, I hope that helps. God bless you. We'll be right back with Faith and Finance.
SEGMENT 3
Rob West Great to have you with us today on Faith and Finance here on American Family Radio. Before we head back to the phones—and by the way, two lines are open at 800-525-7000—let me mention that FaithFi is listener-supported. We're a listener-supported ministry, so as the Lord allows us to reach literally millions of people each day with biblically based financial wisdom to manage God's money God's way, we do that because of your support.
One of the ways you can support the ministry is by becoming a FaithFi partner. When you give $35 a month or at least $400 a year, you'll receive exclusive partner benefits all year long, but more important than that, you'll allow us to bring this ministry to more people. Your generosity fuels FaithFi as it equips believers with biblical wisdom for lifelong faithfulness. Those benefits include access to the FaithFi app Pro, Faithful Steward (our quarterly printed magazine), two of FaithFi's newest books or resources each year, and exclusive ministry updates and behind-the-scenes impact stories.
If you'd like to become a partner today, we'd encourage you to go to faithfi.com/give. While there, you can also make a one-time gift. Here's my ask of you: we're a couple of months into our new fiscal year, which starts July 1st, and we're slightly behind in our giving for this year with big plans. So if you love the ministry, have found something helpful, and would like to be a part of supporting our work, we'd certainly be grateful. A one-time gift or becoming a partner can all happen when you go to faithfi.com/give, and thanks in advance.
Let's head back to the phones. We're going to go to Pennsylvania next. Jeff, thanks for holding, sir. Go ahead.
Jeff Hey Rob, thanks for taking my call.
Rob West Sure.
Jeff My wife's parents would like to transfer the title to their house to my wife and I prior to their death, and I didn't know what the tax implications were of that.
Rob West Yeah, it's a great question. The biggest tax consideration when transferring property from in-laws to adult children is whether the property is gifted, sold, or inherited. For a couple in their mid-50s working full-time, you want to be especially careful about transferring property while the parents are still living, because the wrong approach could create a substantial capital gains tax bill later.
Let's talk about those three options:
• Gift the property now: There is generally no federal income tax when receiving the gift. They would just need to report it to the IRS, and it would chip away at their lifetime gift exclusion, which right now sits north of $15 million. Unless they have a very significant estate, it would not be taxable to you or to them. However, you would inherit your in-laws' original cost basis. Whenever you sell real property that has appreciated, you pay capital gains tax (currently 0%, 15%, or 20%, depending on your total taxable income). If you inherit property instead, you receive a stepped-up cost basis to the market value at the date of death, meaning no capital gains if sold right away. Gifting it now means you take their old, potentially very low cost basis, leading to a larger capital gains tax down the road.
• Sell the property to you: They may owe capital gains depending on the sale price versus what they paid, and you would establish a new cost basis equal to your purchase price.
Let me stop there and see what questions you have.
Jeff All right, so just to make sure I understand, there's no inheritance tax, but capital gains tax would come into play if my wife and I ever sold the property.
Rob West That's right. If they gifted it to you, you would inherit their original cost basis to determine the capital gains (selling price minus their original cost basis and improvements). Versus you inheriting it down the road at death, where the cost basis jumps up to the market value as of the date of death.
Jeff Okay, so if one of our descendants inherits the property later, it would be based on the time of our death, not...
Rob West Yeah, that's exactly right. If you keep it in the family, based on current tax law, anytime an inheritance occurs that basis is adjusted up to the current market value. It can't come through a gift; it has to come through inheritance.
Jeff All right. So gifted goes back to the original cost, and inherited goes to whatever the current cost is at the time of the inheritance.
Rob West You got it. Absolutely right.
Jeff All right, that's what I needed to know.
Rob West Okay, thanks for your call today. By the way, if you do decide to transfer the deed—and you may not, based on what we discussed—you'd want to have an estate planning attorney or a CPA review how the deal is structured to make sure it makes the most sense and that the transfer happens legally under the new owner's name. This is Faith and Finance, much more just around the corner, stick around.
SEGMENT 4
Rob West Great to have you with us today on Faith and Finance, here on American Family Radio. I'm >> Rob West. The market's starting off, well, at least the Dow Jones and the S&P, basically flat today. The Nasdaq up a little more than half of 1%, as tech is rallying today as Elon Musk's SpaceX and Tesla revived, just based on their new quarterly earnings. SpaceX jumping today, and that's pushing all of tech higher. Certainly an interesting phenomenon happening today. Bob Doll stops by in the next segment. Bob's going to update us on what he's watching in the markets. Bob is our go-to guy on the markets. You'll see him regularly on Fox Business and CNBC. Bob is a Christ follower, he's a leader in faith-based investing, he sits on our board at Kingdom Advisors, manages billions of dollars in the market, and he joins us each week to update us on the economy, the markets, what you need to know as we begin a trading week. That's coming up in the next segment, you won't want to miss it. In the meantime, we're taking your calls and questions today. Let's get back to those phones. Illinois, Keith, thanks for your patience. Go ahead, sir.
Keith Good morning, thank you for taking my call.
Rob West Absolutely.
Keith I teach a junior high Sunday school class, and I'm wondering what materials you would recommend concerning giving, prudence with money, just an age appropriate, just any recommendations that you might. I could do my own lessons, but I figured someone smarter than me is probably already done it. So I just wanted to see what you would recommend.
Rob West Yeah, I've got a couple of options for you. The first would be a resource called The Money Challenge for Teens, and it's by our friend Dr. Art Rainer. Again, that title is The Money Challenge for Teens. It's a great resource for helping teenagers develop wise financial habits from a biblical perspective. And if you just put that in your search engine, The Money Challenge for Teens, Art Rainer, it'll come right up. The other would be a newer resource called Right from the Start, our friends at Compass Financial Ministry, that was founded by Howard Dayton, who is the former host of this program, Faith and Finance. It's designed specifically for ages 11 to 15, Keith, and so that may fit here. You know, it provides really practical and accessible introductions to financial discipleship, really geared toward helping young people understand how to manage money in a way that honors God. So I think either of those could be great options: The Money Challenge for Teens or Right from the Start from Compass.
Keith From Compass. All right. Okay, thank you very much.
Rob West Absolutely, sir. Thanks for what you're doing to invest in the next generation. So important that they develop a biblical worldview of money. And if we can help further, don't hesitate to reach out. Let's see, we'll go to Tennessee next. Let's see, Netty, how can we help?
Netty My mother left her house to her eight children in her will. She allowed me to live in the house for as long as I want, and I have been here for 30 plus years. All of my siblings are deceased except me and my sister, and I want to know how can I go about putting the house in my name? My only living sibling said that she would assign her part of the house to me. And I just need to know, how can I assign the house into my name?
Rob West Yes. Well, the sister's, your sister's agreement alone may not be enough. It depends on whether your mother's will actually says who legally inherits the property. How was that spelled out in her will?
Netty Just like I said, it didn't say who legally—well, she left it to all eight of us.
Rob West Okay, all eight.
Netty But I was allowed to live here as long as I want to. Got it. And six are deceased.
Rob West Okay, got it. Yeah, that helped, that helps. So, you know, I think what needs to happen next is, um, you know, the only thing that complicates this is, um, you know, depending upon the state laws, the state inheritance laws, there may be some part of this that passed to your sibling's children or other beneficiaries. Um, did any of them pass before your mom?
Netty No, all of them after my mother died.
Rob West Okay. So if that's the case, then their shares generally become a part, um, well, so if they died after, uh, your mom, then um, then their shares generally become part of their own estate and, you know, then may have passed uh to the heirs. Um, and so if the the will specifically established survivorship rights, um, then, you know, that you as the two surviving siblings might own the own uh own the entire property, but this is going to need to be verified. So, I think really your next step is to connect with a local estate attorney, um, and maybe it's the attorney that, you know, helped uh to draft the will in the first place, but in either case, I would take the will and the deed to a local estate attorney who would determine whose signatures are required to put the uh home entirely in your name, um, because, you know, it it may be more complicated than this given that they've, you know, they've passed six of them and therefore, you know, their beneficiaries or heirs may have a claim to the property. They may or may not, but that needs to be sorted out as a next step.
Netty Okay, I see. Well, thank you very much.
Rob West You are welcome, Netty, and thanks for calling today. If we can help further, don't hesitate to reach out. 800-525-7000. We'd love to hear from you today. Let's go to Mississippi, Daniel, how can we help?
Daniel Yes, sir. My wife and I are getting close to retiring, and we're trying to get everything in order. And I had a question that popped up in my mind. We've been putting back for our retirement for many years. We've been going to church since the day we got married and tithing. And I was wondering on our retirement, since we taxed or or uh paid tithe on that while we were tithing during the years, do we still pay tithe on it when we redraw it out?
Rob West Yeah, it's a great question. It comes up often. And, you know, when it comes to retire when it comes to tithing on retirement income, I think it's helpful, Daniel, to remember the New Testament emphasizes generous, willing, and cheerful giving rather than requiring a specific percentage. Now, I like the tithe as a helpful benchmark. You know, Randy Alcorn, the author calls it the training wheels of giving. It's a great beginning point, so long as our giving is a response to God's grace, as in an outflow of our gratitude to him, we give that, you know, willing, that generous, that cheerful giving is what I believe honors the Lord. Um, but I think that again, there's nothing wrong with you saying, "I want to give proportionately," which is certainly a part of New Testament giving. And that proportionate giving is going to happen on the increase. And so if that's what you're trying to accomplish, then we say, "Okay, what of your retirement income is your increase?" Because you appropriately pointed out, if you've been tithing on your gross income throughout your working years, you've likely already given on at least a portion of the money that is coming back to you in the form of social security. So I think you've got two approaches. One is just to say, "Everything I receive from God is a gracious gift from the Lord, and I want to continue to honor him proportionately, and I'm just going to give as a starting point a tenth of what comes in, everything that comes in back to the Lord," recognizing that you, you know, are giving on some that's just being returned to you. Another way would to take, basically just a rough guess, and I'd like the 50/50 allocation where you'd say, "Okay, of every check, I'm going to treat 50% as a return of what I've already paid in through FICA taxes and therefore tithed on, and I'm going to treat the other half as the growth that's occurred in the account." Ultimately, that's going to come down to how long you live, but I like that 50/50 starting point as at least a place for you to reference. I hope that helps. We'll be right back.
SEGMENT 5
Rob West Well, it's a new trading week. Bob Doll is here to weigh in with his investment commentary. We will have time to head back to the phones—Brian and Nona, thanks for your patience, we'll get to those questions here in just a moment. But first, Bob, everything green at the moment, barely so. What are you watching this week?
Bob Doll All kinds of crosscurrents, Rob, as you know. We're in the thick of earnings reporting season for the third quarter. By and large, results have been good, as expected. And overnight, we got better-than-expected news from SpaceX, which is a relatively new IPO that's gotten a whole lot of attention, and so that stock's up, and it's raising many of the technology stocks, which some days these days are the best place to be, and some place the worst place to be. So it underscores the toing and froing inside the market. One day it's staples and healthcare and things independent of the economy, and the next day it's technology and energy stocks. So we've got a lot of crosscurrents going on, Rob.
Rob West Yeah, no doubt about it, Bob. Obviously, inflation remains front and center. We had a Fed move upward in the last meeting. Should that be expected to have an impact, and if so, how quickly? Or is that just the first in a series before we would start to see any kind of meaningful decline for inflation?
Bob Doll It's probably the first in a series. The series may only have two, but most are arguing for at least two more increases, and some are saying as many as three or four more increases. Since we last talked, Rob, we've gotten the CPI, Consumer Price Index, and the news was worse than expected. Inflation's moved up well into the 3s, if you will, far from the 2% target of the Fed. So they're not finished. They meet at the end of this month. Most people, we are in agreement, are saying they'll probably pass and wait till December to raise rates again. So this is a sequence and a series that's probably not going to go away real soon.
Rob West Yeah, no doubt. Bob, you mentioned corporate earnings, which continue to be fairly strong. You have a note in here in your weekly commentary about the S&P 500 earnings per share growth in 2026. Share that with us.
Bob Doll Yeah, the consensus estimate for this full year is up a whopping 31.5%. Wow. I remind listeners that the long-term average is about 7.5%. So we're in this run that's gone on for several quarters now of stellar earnings, and that at some point will slow down, of course, and we need to wonder how will the market react to the slowdown, especially if the negatives of inflation and war and oil are still with us. Until now, the earnings have just punched the market higher despite those other issues. So earnings need to be watched very, very carefully.
Rob West Bob, obviously, the midterms just around the corner. We'll waiting and seeing. You know, could have a big win by the Democrats in two weeks. There's also maybe signs that the Senate is going to be held onto. You know, what are your thoughts, and how might either outcome affect the markets?
Bob Doll Well, for starters, as you know the history, Rob, since 1942, we've had a lot of midterm elections, and in every midterm election from the election day out 12 months, the stock market has always gone up, no exceptions. Let's hope we don't break that trend this time, Rob. We are of the view that the Democrats will almost definitively take the House, and higher than 50% probability that they will take the Senate as well. And, by the way, when the incumbent party, in this case the Republicans, lose both houses in those midterm elections, that's when the stock market in the next 12 months does the best. So go figure. I think there are going to be a lot of issues related to regulatory, the Trump family will be charged of all kinds of things, and the longer-term observers wonder: is this a prelude to the Democrats taking the White House in 2028? Does it mean that the slow but noticeable tax cuts we've seen in corporate income tax rate, capital gains taxes, is that era over for now, and might we unfortunately witness higher tax rates?
Rob West Yeah, well, a lot at stake here, which is why you need, if you're listening, to be sure you show up and vote at the midterms, and don't do that without going to ivoterguide.com first and bring your values with you as you vote, ivoterguide.com. Bob, final thoughts here. Speaking of voting your values, you can invest your values as well, right?
Bob Doll Absolutely, and I want to underscore the voting. We Christians have an obligation to be part of the process, and we all need to vote. So thanks for urging listeners to do that. Yes, you can invest in your values, too, and you and I spend much of our waking hours focused on that issue, helping people line up their investments with their values, with their faith, like they attempt to line all their life up that way, and we're having a good time doing it and having some pretty good results, as you well know.
Rob West I know you sure are, Bob. Thanks for your leadership in that space and for your time here today.
Bob Doll God bless.
Rob West All right. That's Bob Doll. He's CEO and CIO at Crossmark Global Investments, a leader in faith-based investing. If you want to learn more, go to crossmarkglobal.com and sign up for Bob's weekly commentary.
All right, let's try to get to two more phone calls before we round out the broadcast. Nona's been waiting patiently, but we're going to go to Iowa and welcome Brian first. Go ahead.
Brian Good morning, Rob.
Rob West Hi there.
Brian Hey, you were talking earlier with a gal about overtime payroll and the tax on it, how it's no longer in the system or being taken out. But how is that qualified? Who determines that?
Rob West Yeah, generally it means the hours worked need to be beyond the 40 hours in a work week under the Federal Fair Labor Standards. So the important distinction is that not all overtime paid by an employer qualifies for the federal tax deduction. So how do they determine that? Well, if you go over 40 hours in a work week, generally that qualifies if the employee is covered by federal overtime requirements. Over eight hours in a day doesn't automatically qualify those hours, but certainly may. Weekend or holiday premium pay, voluntary overtime, you know, so there's several things there, and ultimately the employer is the one who should track the hours actually worked within the established seven-day work week and determine which employees are eligible under federal regulations, and then calculate the qualifying overtime premium and then separately report it on the employee's W-2. So some occupations have special federal overtime rules. So ultimately, as an employer, they use the federal 40-hour work week standard, not just what your company considers overtime, but you can certainly pay overtime after a lesser number of hours, but that doesn't automatically make it eligible for the new tax deduction. So your employer would provide that distinction on the W-2.
Brian So in other words, I need to check with my employer.
Rob West Absolutely, yep.
Brian Okay, sounds good. Thank you, sir, appreciate you.
Rob West All right, thank you, Brian, appreciate you. Nona, in Oklahoma, go ahead.
Nona Hi, I have a 25-year-old nephew that just started a new job, and he's not eligible to put in money to his retirement until he's been employed there one year. He's open to suggestions, and he's willing to pay into some independent funded 401(k) or IRA or something like that. What do you recommend or suggest?
Rob West Yeah, great question, and what I would say is, my top recommendation here would be a Roth IRA. Assuming he qualifies based on his income, as long as he has earned income up to the limit, which for 2026, if you're under 50, is going to be $7,500, then he could make a contribution up to that amount anytime between now and when he files his 2026 return, between now and April 15th of '27. Why the Roth? Well, you get tax-free growth. So the investments go in after tax, meaning the contribution goes in after tax, which just simply means he gets paid, he pays the tax on that compensation, and then he makes the contribution to the Roth IRA without any kind of deduction. But it's perfect for younger workers because he's probably paying a lower tax bracket today because he's early in his working years, and then all of that money is going to grow tax-free between now and retirement. So as long as he waits until after 59 and a half to take it out, all that gain, because it's been invested, is now going to come out 100% tax-free. There's flexible contributions. He can contribute monthly, he can contribute whenever he has extra money, and he can put in any amount he wants up to the limit of $7,500. I'd probably tell him to open an account with the Fidelity Go robo-advisor or the Charles Schwab Intelligent Portfolios. Those are both robo-advisors, they're low cost, they would pick the investments for him, but it'd be a great way for him to get started with a Roth IRA, okay?
Nona Is that something that he would do on the internet or would he have to make an appointment with an advisor in person?
Rob West No, yeah, I mean if he's 25, he's probably going to be more equipped to do that on the internet just because it's so easy and that's the way they tend to do business these days, and it's quick and easy to establish online. He would just want to search for Fidelity Go or Schwab Intelligent Portfolios. He could get started in less than 10 minutes.
Nona Okay, thank you so much.
Rob West All right, thanks, Nona, God bless you. That's going to do it for us today. What a great show, great questions. We appreciate so much you being a part of the program. Thank you for trusting us with the decisions you're making in your financial life. Here's the bottom line: God owns everything, Jesus is our ultimate treasure, money's a tool, our goal, faithfulness with what passes through our hands. Big thanks to Michael, Taylor, Devin, Patty, Pat, everybody here at FaithFi. Support our work at faithfi.com/give, and we'll see you tomorrow.
Rob West Proverbs 18:11 says, "The wealth of the rich is their fortified city; they imagine it a wall too high to scale." I am >> Rob West. Money can provide real protection, but it can also give us a false sense of security. In 1 Samuel 25, a wealthy man named Nabal learned just how dangerous that can be. We'll talk about that today, and then it's under your calls at 800-525-7000. This is Faith and Finance on American Family Radio, biblical wisdom for your financial decisions.
Let's go back to 1 Samuel 25. Nabal was extremely wealthy, owning 3,000 sheep and 1,000 goats. His wife, Abigail, is described as intelligent and discerning, but Nabal himself was harsh and badly behaved. As the story unfolds, we see how much confidence he placed in his possessions and status. At the time, David was still fleeing from King Saul. While David and his men were living in the wilderness, they spent time near Nabal's shepherds. Rather than taking advantage of them, David's men protected them. Later, one of Nabal's servants told Abigail that David's men had been very good to them and had served as a wall around them day and night. Then came sheep shearing season, a time of celebration and abundance. David sent several young men to Nabal with a respectful request: would he share some provisions with David and his men? It was not unreasonable; David's men had helped protect Nabal's workers and livestock, and now David was simply asking him to share from his abundance. But Nabal's answer revealed his heart. "Who is David?" he asked. "Who is the son of Jesse?" In other words, why should I owe you anything? Nabal had plenty, but his abundance produced no gratitude. It had produced arrogance, and suddenly, Proverbs 18:11 becomes remarkably vivid. Nabal had built his own fortified city of wealth and status, but remember how the proverb ends: "They imagine it a wall too high to scale." Notice that last phrase, "they imagine it." Wealth really can provide a measure of protection, savings can create margin, insurance can transfer risk, wise planning can prepare us for trouble. Scripture commends prudence. The danger comes when practical security becomes ultimate security. Nabal seems to have believed that his status, possessions, and household made him untouchable. Yet while he feasted like a king, David prepared to come against him with armed men. The wall Nabal imagined was protecting him was not nearly as strong as he thought, and that's where Abigail enters the story. When she learned what happened, she acts quickly. She prepares food, goes out to meet David, and approaches him with remarkable humility and wisdom. She acknowledges the danger, urges David not to shed blood unnecessarily, and reminds him that the Lord will establish his future. Her wisdom prevents a disaster. The contrast could hardly be sharper. Nabal had wealth but lacked wisdom. Abigail had humility, discernment, and a clear awareness that their household was not beyond danger. And that raises an important question for us: What are we asking money to do for us? It is good to save, invest wisely, carry appropriate insurance, build an emergency fund, prepare for retirement, and provide for your family, but none of those things can bear the weight of becoming our ultimate security. A strong balance sheet can't guarantee tomorrow. A diversified portfolio can't prevent every loss. That doesn't make those things bad; it simply means they're limited. Paul makes a similar point in 1 Timothy 6:17, telling the rich not to set their hope on the uncertainty of riches, but on God, who richly provides us with everything to enjoy. That's the biblical balance: enjoy God's provision, manage it wisely, use it to provide, save, give, and prepare, but just don't confuse the gift with the giver. And remember, this temptation isn't limited to people with great wealth. Whether we have a little or a lot, any of us can start believing that if we could just reach a certain number, earn a certain salary, eliminate every debt, or build a large enough account, then we would finally be safe. But financial wisdom can never remove our need for trust in our provider. So yes, build margin, plan carefully, but hold it all with humility because ultimately, we're not in control. Everything we have comes from God, belongs to God, and is sustained by God. I hope that's an encouragement to you. And before we take our first break, let me also remind you, there's a great wealth of resources waiting for you at faithfi.com. You'll find more about the FaithFi app, which can help you manage your budget and stay on track, you'll find all of our great content, and you can jump into the FaithFi community. Again, it's all at faithfi.com. All right, back with your questions after this: 800-525-7000. Stick around.
SEGMENT 2
Rob West Thanks for joining us today on Faith and Finance, here on American Family Radio. Well, we're live, we're taking your calls and questions today to help you apply biblical wisdom to your financial decisions. So if you've got a question, now's the time to call 800-525-7000. That's 800-525-7000.
Do you wonder periodically how your faith intersects with your financial decisions? Do you have things on your mind as you give, save, and spend that you're wrestling with? Perhaps you're trying to pay off some debt or balance that budget. I realize that's difficult. Maybe you're investing for the future and wanting to know how to navigate this market, especially as we head toward the midterms. Do you wait on the sidelines? Is now the time to jump in?
Whatever you're wrestling with today, we'd love to help you think about it, but always in view of God's word, because there's 2,300 verses in scripture that deal with money and possessions, and we want to make sure you're applying those principles, the heart of God that we see in his word, to the money decisions you're making. That's our goal each day, to encourage you, to cheer you on, to point you back to God's word, but also to help you make practical decisions and choices.
So now's the time to call, the lines are filling up. So if you have a question, call right now 800-525-7000. We'll dive into those here in just a moment.
Rob West But first, in the news today, a new Federal Reserve survey shows more Americans nearing retirement have money in dedicated retirement accounts, but significant gaps remain. The 2025 survey of consumer finances, released October the 9th, found that nearly 37% of all US households headed by someone ages 55 to 64 had no retirement account savings. That's down from 43% in 2022 according to previous congressional research survey analysts. Among households in that age group with retirement savings, the median account balance was $239,000. The figures don't include other possible sources of retirement support such as traditional pensions or home equity or even social security.
For Christians, these findings are a reminder that preparing for retirement is part of wise stewardship, not a reason for fear. Whether retirement is decades away or just around the corner, it's never too late to evaluate spending, reduce debt, and save what you can while trusting God as your ultimate provider. I will say, however, though, that we approach retirement differently as Christ followers. I don't think we should buy into the cultural narrative about working until 65 and ceasing all productive work so we can live a life of leisure. There's nothing wrong with rest or even taking a season of sabbatical, but we're in lifetime service to our King.
And in that fourth quarter of life, I submit you have the most in wisdom and experience to invest in your community, in the next generation, as you perhaps reengage in a different way. Maybe it's from retirement to rehire-ment, as you think about that picture of that elder in scripture at the city gate, dispensing wisdom and engaged in discourse and conversation and engaged in ministry and kingdom work, and now maybe with more flexibility financially, you're doing that in a brand new way. We were created to be productive, to be on mission for God through the whole of our life until he calls us home. We don't need to buy into that cultural narrative that we're done and we have nothing to contribute. When we do, well, our health follows and that starts to decline, because that's not the way God wired us. I hope that's an encouragement to you today.
Yes, we need to save, that's good stewardship, but we also need to be thinking about what it looks like in that next season to be open-handed and surrendered to God's purposes.
Rob West All right, we've got some questions holding, we want to dive into those. Every line's full, so let's begin in Ohio today, Carolyn, how can I help?
Carolyn I was wondering, Trump implemented the overtime tax-free income, how is that dealt with? The employer, or when you pay your taxes?
Rob West Yeah, the employee generally claims the overtime tax deduction when filing their federal income tax, Carolyn, not through their employer. So under the new no tax on overtime provision of the One Big Beautiful Bill Act, the employer's responsibility is to report the employee's qualifying overtime compensation on their W-2 or provide the information needed to calculate it. Then the employee's responsibility is to claim the deduction when filing their federal income taxes.
Now with regard to payroll withholding, employers generally continue withholding federal income taxes from overtime pay during the year unless the employee adjusts their form W-4, which means you would likely get that back as a refund when you file. Now, the law, keep in mind, doesn't make all overtime completely tax-free; it creates a federal income tax deduction for qualifying overtime compensation. But again, employers have to report the qualifying overtime separately in a separate box of the W-2, and then you would ultimately claim that tax break when you file your return.
Carolyn Okay, thank you very much.
Rob West All right, thank you, Carolyn. We appreciate your call today.
Rob West Let's head to Georgia and talk to David. David, how can we help?
David Good morning, this is David from Georgia. I appreciate your radio ministry here. I have a question about tithing, and before God, would it be okay or even right to be taken a portion of the tithe and designate it for the pastor's income? And let me qualify this by saying I've been at this church for well over 25 years, and the pastor has no designated income. He doesn't work outside the church; he's full-time in the ministry. And there is nothing in the budget or normally paid out. Basically he's got up and said, "I take nothing out of the tithe, he said I will not touch the tithe." Well, you know, I kind of feel the same way, you know, I don't want to get into the business of designating this much money for the water bill, this much money for the electricity bill, or this that. And yet, I have a real heart for the pastor. I mean, you know, he's like everybody else.
Rob West That's right. Yes, sir. And that's very biblical. Let me give you my thoughts on this here, David, because it's a great question. I think first, scripture clearly teaches that those who devote themselves to gospel ministry are worthy of financial support. 1 Timothy 5:17 and 18 speaks of honoring elders who labor in preaching and teaching. And then the Apostle Paul writes in 1 Corinthians 9 that those who proclaim the gospel should receive their living from the gospel. So there's certainly a biblical basis for supporting an unpaid pastor financially.
I think the question is whether that support should come from what you've designated as your tithe. Now, let's back up. Under the New Testament, Christians aren't given a specific percentage they're required to give. Instead, we're encouraged to give generously, willingly, cheerfully. We see all that in 2 Corinthians 9:7. So my encouragement would be to continue prioritizing your local church in your giving. But if you were moved to support a pastor who serves without compensation, I believe, and this is just my opinion, I believe that's a worthy expression of biblical generosity.
I'd also encourage you to consider whether that gift could be made through the church, which provides accountability and transparency. You'd have to have a conversation with them about that; they may or may not be willing to do that as a designated gift. But here's what I would say: ultimately, giving isn't about satisfying a legal requirement, it's about faithfully stewarding God's resources to support his church, care for those who minister, and advance the gospel. Ultimately, that's a decision between you and the Lord. David, I hope that helps. God bless you. We'll be right back with Faith and Finance.
SEGMENT 3
Rob West Great to have you with us today on Faith and Finance here on American Family Radio. Before we head back to the phones—and by the way, two lines are open at 800-525-7000—let me mention that FaithFi is listener-supported. We're a listener-supported ministry, so as the Lord allows us to reach literally millions of people each day with biblically based financial wisdom to manage God's money God's way, we do that because of your support.
One of the ways you can support the ministry is by becoming a FaithFi partner. When you give $35 a month or at least $400 a year, you'll receive exclusive partner benefits all year long, but more important than that, you'll allow us to bring this ministry to more people. Your generosity fuels FaithFi as it equips believers with biblical wisdom for lifelong faithfulness. Those benefits include access to the FaithFi app Pro, Faithful Steward (our quarterly printed magazine), two of FaithFi's newest books or resources each year, and exclusive ministry updates and behind-the-scenes impact stories.
If you'd like to become a partner today, we'd encourage you to go to faithfi.com/give. While there, you can also make a one-time gift. Here's my ask of you: we're a couple of months into our new fiscal year, which starts July 1st, and we're slightly behind in our giving for this year with big plans. So if you love the ministry, have found something helpful, and would like to be a part of supporting our work, we'd certainly be grateful. A one-time gift or becoming a partner can all happen when you go to faithfi.com/give, and thanks in advance.
Let's head back to the phones. We're going to go to Pennsylvania next. Jeff, thanks for holding, sir. Go ahead.
Jeff Hey Rob, thanks for taking my call.
Rob West Sure.
Jeff My wife's parents would like to transfer the title to their house to my wife and I prior to their death, and I didn't know what the tax implications were of that.
Rob West Yeah, it's a great question. The biggest tax consideration when transferring property from in-laws to adult children is whether the property is gifted, sold, or inherited. For a couple in their mid-50s working full-time, you want to be especially careful about transferring property while the parents are still living, because the wrong approach could create a substantial capital gains tax bill later.
Let's talk about those three options:
• Gift the property now: There is generally no federal income tax when receiving the gift. They would just need to report it to the IRS, and it would chip away at their lifetime gift exclusion, which right now sits north of $15 million. Unless they have a very significant estate, it would not be taxable to you or to them. However, you would inherit your in-laws' original cost basis. Whenever you sell real property that has appreciated, you pay capital gains tax (currently 0%, 15%, or 20%, depending on your total taxable income). If you inherit property instead, you receive a stepped-up cost basis to the market value at the date of death, meaning no capital gains if sold right away. Gifting it now means you take their old, potentially very low cost basis, leading to a larger capital gains tax down the road.
• Sell the property to you: They may owe capital gains depending on the sale price versus what they paid, and you would establish a new cost basis equal to your purchase price.
Let me stop there and see what questions you have.
Jeff All right, so just to make sure I understand, there's no inheritance tax, but capital gains tax would come into play if my wife and I ever sold the property.
Rob West That's right. If they gifted it to you, you would inherit their original cost basis to determine the capital gains (selling price minus their original cost basis and improvements). Versus you inheriting it down the road at death, where the cost basis jumps up to the market value as of the date of death.
Jeff Okay, so if one of our descendants inherits the property later, it would be based on the time of our death, not...
Rob West Yeah, that's exactly right. If you keep it in the family, based on current tax law, anytime an inheritance occurs that basis is adjusted up to the current market value. It can't come through a gift; it has to come through inheritance.
Jeff All right. So gifted goes back to the original cost, and inherited goes to whatever the current cost is at the time of the inheritance.
Rob West You got it. Absolutely right.
Jeff All right, that's what I needed to know.
Rob West Okay, thanks for your call today. By the way, if you do decide to transfer the deed—and you may not, based on what we discussed—you'd want to have an estate planning attorney or a CPA review how the deal is structured to make sure it makes the most sense and that the transfer happens legally under the new owner's name. This is Faith and Finance, much more just around the corner, stick around.
SEGMENT 4
Rob West Great to have you with us today on Faith and Finance, here on American Family Radio. I'm >> Rob West. The market's starting off, well, at least the Dow Jones and the S&P, basically flat today. The Nasdaq up a little more than half of 1%, as tech is rallying today as Elon Musk's SpaceX and Tesla revived, just based on their new quarterly earnings. SpaceX jumping today, and that's pushing all of tech higher. Certainly an interesting phenomenon happening today. Bob Doll stops by in the next segment. Bob's going to update us on what he's watching in the markets. Bob is our go-to guy on the markets. You'll see him regularly on Fox Business and CNBC. Bob is a Christ follower, he's a leader in faith-based investing, he sits on our board at Kingdom Advisors, manages billions of dollars in the market, and he joins us each week to update us on the economy, the markets, what you need to know as we begin a trading week. That's coming up in the next segment, you won't want to miss it. In the meantime, we're taking your calls and questions today. Let's get back to those phones. Illinois, Keith, thanks for your patience. Go ahead, sir.
Keith Good morning, thank you for taking my call.
Rob West Absolutely.
Keith I teach a junior high Sunday school class, and I'm wondering what materials you would recommend concerning giving, prudence with money, just an age appropriate, just any recommendations that you might. I could do my own lessons, but I figured someone smarter than me is probably already done it. So I just wanted to see what you would recommend.
Rob West Yeah, I've got a couple of options for you. The first would be a resource called The Money Challenge for Teens, and it's by our friend Dr. Art Rainer. Again, that title is The Money Challenge for Teens. It's a great resource for helping teenagers develop wise financial habits from a biblical perspective. And if you just put that in your search engine, The Money Challenge for Teens, Art Rainer, it'll come right up. The other would be a newer resource called Right from the Start, our friends at Compass Financial Ministry, that was founded by Howard Dayton, who is the former host of this program, Faith and Finance. It's designed specifically for ages 11 to 15, Keith, and so that may fit here. You know, it provides really practical and accessible introductions to financial discipleship, really geared toward helping young people understand how to manage money in a way that honors God. So I think either of those could be great options: The Money Challenge for Teens or Right from the Start from Compass.
Keith From Compass. All right. Okay, thank you very much.
Rob West Absolutely, sir. Thanks for what you're doing to invest in the next generation. So important that they develop a biblical worldview of money. And if we can help further, don't hesitate to reach out. Let's see, we'll go to Tennessee next. Let's see, Netty, how can we help?
Netty My mother left her house to her eight children in her will. She allowed me to live in the house for as long as I want, and I have been here for 30 plus years. All of my siblings are deceased except me and my sister, and I want to know how can I go about putting the house in my name? My only living sibling said that she would assign her part of the house to me. And I just need to know, how can I assign the house into my name?
Rob West Yes. Well, the sister's, your sister's agreement alone may not be enough. It depends on whether your mother's will actually says who legally inherits the property. How was that spelled out in her will?
Netty Just like I said, it didn't say who legally—well, she left it to all eight of us.
Rob West Okay, all eight.
Netty But I was allowed to live here as long as I want to. Got it. And six are deceased.
Rob West Okay, got it. Yeah, that helped, that helps. So, you know, I think what needs to happen next is, um, you know, the only thing that complicates this is, um, you know, depending upon the state laws, the state inheritance laws, there may be some part of this that passed to your sibling's children or other beneficiaries. Um, did any of them pass before your mom?
Netty No, all of them after my mother died.
Rob West Okay. So if that's the case, then their shares generally become a part, um, well, so if they died after, uh, your mom, then um, then their shares generally become part of their own estate and, you know, then may have passed uh to the heirs. Um, and so if the the will specifically established survivorship rights, um, then, you know, that you as the two surviving siblings might own the own uh own the entire property, but this is going to need to be verified. So, I think really your next step is to connect with a local estate attorney, um, and maybe it's the attorney that, you know, helped uh to draft the will in the first place, but in either case, I would take the will and the deed to a local estate attorney who would determine whose signatures are required to put the uh home entirely in your name, um, because, you know, it it may be more complicated than this given that they've, you know, they've passed six of them and therefore, you know, their beneficiaries or heirs may have a claim to the property. They may or may not, but that needs to be sorted out as a next step.
Netty Okay, I see. Well, thank you very much.
Rob West You are welcome, Netty, and thanks for calling today. If we can help further, don't hesitate to reach out. 800-525-7000. We'd love to hear from you today. Let's go to Mississippi, Daniel, how can we help?
Daniel Yes, sir. My wife and I are getting close to retiring, and we're trying to get everything in order. And I had a question that popped up in my mind. We've been putting back for our retirement for many years. We've been going to church since the day we got married and tithing. And I was wondering on our retirement, since we taxed or or uh paid tithe on that while we were tithing during the years, do we still pay tithe on it when we redraw it out?
Rob West Yeah, it's a great question. It comes up often. And, you know, when it comes to retire when it comes to tithing on retirement income, I think it's helpful, Daniel, to remember the New Testament emphasizes generous, willing, and cheerful giving rather than requiring a specific percentage. Now, I like the tithe as a helpful benchmark. You know, Randy Alcorn, the author calls it the training wheels of giving. It's a great beginning point, so long as our giving is a response to God's grace, as in an outflow of our gratitude to him, we give that, you know, willing, that generous, that cheerful giving is what I believe honors the Lord. Um, but I think that again, there's nothing wrong with you saying, "I want to give proportionately," which is certainly a part of New Testament giving. And that proportionate giving is going to happen on the increase. And so if that's what you're trying to accomplish, then we say, "Okay, what of your retirement income is your increase?" Because you appropriately pointed out, if you've been tithing on your gross income throughout your working years, you've likely already given on at least a portion of the money that is coming back to you in the form of social security. So I think you've got two approaches. One is just to say, "Everything I receive from God is a gracious gift from the Lord, and I want to continue to honor him proportionately, and I'm just going to give as a starting point a tenth of what comes in, everything that comes in back to the Lord," recognizing that you, you know, are giving on some that's just being returned to you. Another way would to take, basically just a rough guess, and I'd like the 50/50 allocation where you'd say, "Okay, of every check, I'm going to treat 50% as a return of what I've already paid in through FICA taxes and therefore tithed on, and I'm going to treat the other half as the growth that's occurred in the account." Ultimately, that's going to come down to how long you live, but I like that 50/50 starting point as at least a place for you to reference. I hope that helps. We'll be right back.
SEGMENT 5
Rob West Well, it's a new trading week. Bob Doll is here to weigh in with his investment commentary. We will have time to head back to the phones—Brian and Nona, thanks for your patience, we'll get to those questions here in just a moment. But first, Bob, everything green at the moment, barely so. What are you watching this week?
Bob Doll All kinds of crosscurrents, Rob, as you know. We're in the thick of earnings reporting season for the third quarter. By and large, results have been good, as expected. And overnight, we got better-than-expected news from SpaceX, which is a relatively new IPO that's gotten a whole lot of attention, and so that stock's up, and it's raising many of the technology stocks, which some days these days are the best place to be, and some place the worst place to be. So it underscores the toing and froing inside the market. One day it's staples and healthcare and things independent of the economy, and the next day it's technology and energy stocks. So we've got a lot of crosscurrents going on, Rob.
Rob West Yeah, no doubt about it, Bob. Obviously, inflation remains front and center. We had a Fed move upward in the last meeting. Should that be expected to have an impact, and if so, how quickly? Or is that just the first in a series before we would start to see any kind of meaningful decline for inflation?
Bob Doll It's probably the first in a series. The series may only have two, but most are arguing for at least two more increases, and some are saying as many as three or four more increases. Since we last talked, Rob, we've gotten the CPI, Consumer Price Index, and the news was worse than expected. Inflation's moved up well into the 3s, if you will, far from the 2% target of the Fed. So they're not finished. They meet at the end of this month. Most people, we are in agreement, are saying they'll probably pass and wait till December to raise rates again. So this is a sequence and a series that's probably not going to go away real soon.
Rob West Yeah, no doubt. Bob, you mentioned corporate earnings, which continue to be fairly strong. You have a note in here in your weekly commentary about the S&P 500 earnings per share growth in 2026. Share that with us.
Bob Doll Yeah, the consensus estimate for this full year is up a whopping 31.5%. Wow. I remind listeners that the long-term average is about 7.5%. So we're in this run that's gone on for several quarters now of stellar earnings, and that at some point will slow down, of course, and we need to wonder how will the market react to the slowdown, especially if the negatives of inflation and war and oil are still with us. Until now, the earnings have just punched the market higher despite those other issues. So earnings need to be watched very, very carefully.
Rob West Bob, obviously, the midterms just around the corner. We'll waiting and seeing. You know, could have a big win by the Democrats in two weeks. There's also maybe signs that the Senate is going to be held onto. You know, what are your thoughts, and how might either outcome affect the markets?
Bob Doll Well, for starters, as you know the history, Rob, since 1942, we've had a lot of midterm elections, and in every midterm election from the election day out 12 months, the stock market has always gone up, no exceptions. Let's hope we don't break that trend this time, Rob. We are of the view that the Democrats will almost definitively take the House, and higher than 50% probability that they will take the Senate as well. And, by the way, when the incumbent party, in this case the Republicans, lose both houses in those midterm elections, that's when the stock market in the next 12 months does the best. So go figure. I think there are going to be a lot of issues related to regulatory, the Trump family will be charged of all kinds of things, and the longer-term observers wonder: is this a prelude to the Democrats taking the White House in 2028? Does it mean that the slow but noticeable tax cuts we've seen in corporate income tax rate, capital gains taxes, is that era over for now, and might we unfortunately witness higher tax rates?
Rob West Yeah, well, a lot at stake here, which is why you need, if you're listening, to be sure you show up and vote at the midterms, and don't do that without going to ivoterguide.com first and bring your values with you as you vote, ivoterguide.com. Bob, final thoughts here. Speaking of voting your values, you can invest your values as well, right?
Bob Doll Absolutely, and I want to underscore the voting. We Christians have an obligation to be part of the process, and we all need to vote. So thanks for urging listeners to do that. Yes, you can invest in your values, too, and you and I spend much of our waking hours focused on that issue, helping people line up their investments with their values, with their faith, like they attempt to line all their life up that way, and we're having a good time doing it and having some pretty good results, as you well know.
Rob West I know you sure are, Bob. Thanks for your leadership in that space and for your time here today.
Bob Doll God bless.
Rob West All right. That's Bob Doll. He's CEO and CIO at Crossmark Global Investments, a leader in faith-based investing. If you want to learn more, go to crossmarkglobal.com and sign up for Bob's weekly commentary.
All right, let's try to get to two more phone calls before we round out the broadcast. Nona's been waiting patiently, but we're going to go to Iowa and welcome Brian first. Go ahead.
Brian Good morning, Rob.
Rob West Hi there.
Brian Hey, you were talking earlier with a gal about overtime payroll and the tax on it, how it's no longer in the system or being taken out. But how is that qualified? Who determines that?
Rob West Yeah, generally it means the hours worked need to be beyond the 40 hours in a work week under the Federal Fair Labor Standards. So the important distinction is that not all overtime paid by an employer qualifies for the federal tax deduction. So how do they determine that? Well, if you go over 40 hours in a work week, generally that qualifies if the employee is covered by federal overtime requirements. Over eight hours in a day doesn't automatically qualify those hours, but certainly may. Weekend or holiday premium pay, voluntary overtime, you know, so there's several things there, and ultimately the employer is the one who should track the hours actually worked within the established seven-day work week and determine which employees are eligible under federal regulations, and then calculate the qualifying overtime premium and then separately report it on the employee's W-2. So some occupations have special federal overtime rules. So ultimately, as an employer, they use the federal 40-hour work week standard, not just what your company considers overtime, but you can certainly pay overtime after a lesser number of hours, but that doesn't automatically make it eligible for the new tax deduction. So your employer would provide that distinction on the W-2.
Brian So in other words, I need to check with my employer.
Rob West Absolutely, yep.
Brian Okay, sounds good. Thank you, sir, appreciate you.
Rob West All right, thank you, Brian, appreciate you. Nona, in Oklahoma, go ahead.
Nona Hi, I have a 25-year-old nephew that just started a new job, and he's not eligible to put in money to his retirement until he's been employed there one year. He's open to suggestions, and he's willing to pay into some independent funded 401(k) or IRA or something like that. What do you recommend or suggest?
Rob West Yeah, great question, and what I would say is, my top recommendation here would be a Roth IRA. Assuming he qualifies based on his income, as long as he has earned income up to the limit, which for 2026, if you're under 50, is going to be $7,500, then he could make a contribution up to that amount anytime between now and when he files his 2026 return, between now and April 15th of '27. Why the Roth? Well, you get tax-free growth. So the investments go in after tax, meaning the contribution goes in after tax, which just simply means he gets paid, he pays the tax on that compensation, and then he makes the contribution to the Roth IRA without any kind of deduction. But it's perfect for younger workers because he's probably paying a lower tax bracket today because he's early in his working years, and then all of that money is going to grow tax-free between now and retirement. So as long as he waits until after 59 and a half to take it out, all that gain, because it's been invested, is now going to come out 100% tax-free. There's flexible contributions. He can contribute monthly, he can contribute whenever he has extra money, and he can put in any amount he wants up to the limit of $7,500. I'd probably tell him to open an account with the Fidelity Go robo-advisor or the Charles Schwab Intelligent Portfolios. Those are both robo-advisors, they're low cost, they would pick the investments for him, but it'd be a great way for him to get started with a Roth IRA, okay?
Nona Is that something that he would do on the internet or would he have to make an appointment with an advisor in person?
Rob West No, yeah, I mean if he's 25, he's probably going to be more equipped to do that on the internet just because it's so easy and that's the way they tend to do business these days, and it's quick and easy to establish online. He would just want to search for Fidelity Go or Schwab Intelligent Portfolios. He could get started in less than 10 minutes.
Nona Okay, thank you so much.
Rob West All right, thanks, Nona, God bless you. That's going to do it for us today. What a great show, great questions. We appreciate so much you being a part of the program. Thank you for trusting us with the decisions you're making in your financial life. Here's the bottom line: God owns everything, Jesus is our ultimate treasure, money's a tool, our goal, faithfulness with what passes through our hands. Big thanks to Michael, Taylor, Devin, Patty, Pat, everybody here at FaithFi. Support our work at faithfi.com/give, and we'll see you tomorrow.
Proverbs 18:11 says, “The wealth of the rich is their fortified city; they imagine it a wall too high to scale.” Money can provide real protection—but it can also give us a false sense of security. In 1 Samuel 25, a wealthy man named Nabal learned just how dangerous that can be. On this Faith and Finance on AFR, Rob West discusses this further. Then, it’s on to calls.
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