Rob West: Where you bank may seem like a purely practical decision, but it can also be a part of your stewardship. Hi, I'm Rob West. As Christians, every financial decision is an opportunity to manage God's resources faithfully. Today, Aaron Caid joins us to talk about financial discipleship, Christian banking, and how our everyday financial choices can support Kingdom work. And then it's on to your calls at 800-525-7000. This is Faith & Finance on American Family Radio. Biblical wisdom for your financial decisions.
Well, it's always a pleasure to have Aaron Caid with us. Aaron is Chief Marketing Officer at AdelFi Christian Banking and underwriter of this program. AdelFi has been serving Christians for decades, helping individuals and families align their everyday banking decisions with their faith and values. Aaron, great to have you back.
Aaron Caid: Thanks, Rob. It's great to be here with you.
Rob West: Aaron, we talk about biblical stewardship on this program every day, but I'd love for you to talk about how stewardship shapes the way a Christian financial institution approaches banking differently.
Aaron Caid: Well, for Christians, our financial decisions are an act of stewardship—managing what God has graciously given to us.
Rob West: That's right.
Aaron Caid: So whether it's a family preparing for its future, a church expanding its outreach, or a ministry planning its budget, money touches nearly every part of our lives. At AdelFi, our purpose is to serve Christ-followers and ministries to faithfully steward God's resources to advance the Gospel. We provide the practical financial tools they need while keeping biblical stewardship at the center.
Rob West: Mm. And we talk about the size and strength of AdelFi Christian Banking. As a strong Christian financial institution, Aaron, how does that expand the ways AdelFi can serve others?
Aaron Caid: Well, it gives us a greater capacity to serve—with more resources, expertise, technology, and financial solutions. So for families, that can mean managing daily banking, building savings, or borrowing wisely. For churches and ministries, it means working with people who understand you, who understand your cash flow, your property needs, and your long-term vision.
Rob West: Yeah, that's exactly right. I'd love for you to give us an example. I know, for instance, AdelFi came alongside a church in California in a really meaningful way following the pandemic. Share that story.
Aaron Caid: Yeah, I love this example. I mean, during the pandemic lockdown, when churches in Southern California could not meet indoors, Calvary Chapel South Orange County faithfully held Sunday services outdoors in an outlet mall parking lot. And God blessed their work. Their congregation grew exponentially during the pandemic and was larger than their indoor meeting space could accommodate. They needed a larger building that could accommodate their growing congregation.
So AdelFi partnered with them and provided a loan that allowed them to purchase a large property. But it was more than just dollars and cents; it was about people. They now had a place to get plugged in, maintain community, and keep growing together as a congregation.
Rob West: Mm. What does financial discipleship look like in the everyday choices we make with money, Aaron?
Aaron Caid: Yeah. Well, financial discipleship is not about getting rich. It's about cultivating wisdom, contentment, generosity, and faithfulness. You know, and Jesus reminds us of this in Matthew chapter 6 that we cannot serve both God and money, and that where our treasure is, there our heart will be also. Our money belongs to God and is entrusted to us for a purpose. So healthy habits like following a realistic budget and avoiding unnecessary debt can help us align our finances with God's priorities.
Rob West: I think that's right. And let's finish with perhaps how we can choose a bank that becomes a part of the Kingdom impact we make with our money. What does that look like?
Aaron Caid: Well, when members invest in a Christian financial institution, like AdelFi Christian Banking, they're putting their money back into Kingdom work. At AdelFi, we understand the heart behind our members, and that helps us serve families, churches, and ministries in ways that reflect their faith. You know, to date, we have funded more than $1 billion in ministry real estate loans.
Rob West: Wow.
Aaron Caid: We've been able to come alongside ministries with solutions that are both financially responsible and mission-aware. We also offer credit cards that allow members to earn cash back while automatically giving to Christian ministries and missions. It's another way we seek to benefit our members while advancing God's kingdom.
Rob West: Yeah, and I love that product. Folks, where we choose to bank is part of how we steward the resources God has entrusted to us. And choosing a financial institution that shares your values can help ensure those everyday decisions also support the work that advances the Gospel. Aaron, so great to have you with us today. Thanks for joining us.
Aaron Caid: It's been my pleasure, Rob.
Rob West: That's Aaron Caid with AdelFi Christian Banking. One way AdelFi helps members connect their everyday financial decisions with Kingdom impact is through its Cash Rewards Visa. To learn more, visit faithfi.com/banking. Apply by December 31st and you can earn a $200 bonus, plus 1.5% cash back on every purchase and other benefits. And with every swipe, AdelFi gives to Christian charities. Again, that's faithfi.com/banking. That's faithfi.com/banking. Back with your calls after this. Stick around.
David Wollen: For your walk with Jesus, I'm David Wollen with Haven Today, inviting you to anchor your day in God's word. The sinless perfection of Jesus is hard to imagine. He was fully human like us, and he was tempted like us, except he never gave in. Hebrews chapter 5 tells us he learned obedience through what he suffered. In other words, although Jesus had always been fully God, up until he became man, he'd never been in our shoes, experiencing our weakness. So today, when you and I are tempted, we're facing something Jesus knows all about. 1 Corinthians tells us, "When you are tempted, he will also provide a way out so that you can endure it." Are you facing temptation? Pray and take him up on the promise. Get more encouragement for your walk, visit haventoday.org.
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Announcer: It affirms what I know: that God never changes. He's the only one you can count on to be the same. When we change and that change affects our relationship to him, there will be consequences, but it's not God changing. Dr. David Jeremiah continues his series, "Jonah: The Runaway Prophet," next time on Turning Point. 5:30 AM and 7:00 PM Central on American Family Radio.
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Rob West: Hey, great to have you with us today on Faith & Finance here on American Family Radio. I'm Rob West. We're taking your calls and questions today, and we've got plenty of time for it. So now is a great time to call the number 800-525-7000.
What types of questions? Well, any financial question on your mind today. We'd love to help you to press into what God is doing in your life, recognizing we want to connect meaning to money, right? Money is a tool to accomplish God's purposes, and so we want to allow that tool to intersect with how God has wired us, and the passions and desires he's given us to serve his kingdom, aligned with the things that break our heart. And that's through our giving, and our ability to provide and prepare the next steward, and to bless them, and to enjoy God's resources.
But we also know that along the way, you're going to have almost daily questions that you're wrestling with as you give and save and spend, and that's what we want to tackle with you today—help you get those practical answers you're looking for and do it in light of biblical wisdom.
So you can call right now; we've got some lines open: 800-525-7000. We would love to hear from you today: 800-525-7000. The team is standing by; you can call with those questions on any financial topic right now.
In the news today, eligible Trump Account holders are now receiving a $250 grant from the Dell Foundation after deposits began this week. The grant is available to children born between 2016 and 2024 who live in zip codes with median household incomes of $150,000 or less. Parents and guardians can check eligibility through InvestAmerica and track account activity through the Trump Accounts app, which, by the way, I will say that Trump Account app is really nice. They did a great job with it.
Now, Trump Accounts, known also as 530A accounts—that's the IRS section where the code is found—they're available to U.S. children under age 18 with Social Security numbers. Now, keep in mind, children born between 2025 and 2028 may also qualify for a one-time $1,000 federal deposit, but Michael and Susan Dell committed $6.25 billion with a "b" to provide additional funding for children who don't qualify for the federal seed money. The initiative could ultimately reach about 25 million children nationwide.
I will say, we know this is working because one of our team members actually has kids that fit into this range and had the $250 grant deposited in his kid's accounts. And so, what an opportunity here. Don't miss this. trumpaccounts.gov is where you can get more information.
Now, a lot of people wonder, you know, "How should I think about this in terms of... should I use a 529 plan, should I use a Trump Account, which is better?" Here's what I would say: if you believe that the first place that the savings you're putting aside for your kids is going to go is related to education, you really can't beat the 529. I mean, that money is going to go in after tax, but like a Roth, it's going to grow tax-free, and as long as you use it for qualified educational expenses, you're going to be able to pull it out without paying any tax.
Not so with the Trump Account. Think about that like a longer-term and treated like a traditional IRA, in the sense that as you pull that money out, you are going to pay taxes on the gains as income. That's not the case with the 529.
So, don't miss the opportunity to get that automatic deposit, but just consider whether the Trump Account or the 529 is better—in some cases both, in other cases one or the other—depending on the goal, how you want the money to be used, and the time horizon.
But I mentioned that team member, and we were talking this morning. He actually calculated what that $1,000 initial contribution would be if it grew on a relatively conservative basis, maybe equal to what the historical annualized return has been in the stock market. And if that child doesn't touch that money until age 60, guess what that $1,000 is going to be worth: more than a million dollars!
Amazing, isn't it? A one-time deposit, $1,000, growing and compounding from, you know, the age of deposit all the way to age 60, again assuming they don't touch it, over a million dollars. So, what a way to seed a retirement with a minimal amount of money—in this case, not even money that you're putting in, the government's doing it for you, the Treasury—if it's invested, it's left alone, could be a meaningful part of a retirement account someday. Don't miss that. What an opportunity.
And what a great teaching point as well for your kids as you begin to talk about the power of compounding. They're not going to believe it! And so it gives you a great springboard into what they might be missing or perhaps don't understand related to the powerful effect of compounding.
So, don't miss the Trump Accounts. It's rolling, including some of these extra deposits that are going out. Again, more information and details at trumpaccounts.gov, or you can download the Trump Accounts app in the App Store.
All right, hey, a quick update on Preborn. And by the way, in the next segment, we are going to dive into your questions. So if you have a question on any financial topic—maybe it's Social Security for you, or you've got some credit card debt you're wondering the best way to pay it down, maybe you're wondering a trust, a will, both, what other documents do I need for proper estate planning, or perhaps it's "How do I give wisely?"—any of those topics and more, call right now with your questions. We'll be taking these in the next segment: 800-525-7000. Again, that's 800-525-7000.
All right, Preborn. I just want to give you an update. Remember that ended on Monday. We had this three-month opportunity to highlight what God is doing through the ministry of Preborn as they bring free ultrasounds to moms with often unplanned pregnancies considering abortion. When they see their babies, well over half the time, they keep the baby. Preborn also shares the gospel with them. Preborn then journeys with them for up to three years: diapers and car seats and resources that are much needed. It's incredible what they're doing.
Now, we said as of last Friday, we were sitting at around, I think it was $27,900 had come in. And that included a $15,000 gift for one ultrasound machine. Then a Certified Kingdom Advisor called. He said, "I was listening to American Family Radio. I love what I'm hearing. I didn't know Preborn, you've introduced me to it. Whatever comes in when you tally it all up on Monday the 31st, this past Monday, we're going to double it up to $42,000."
Well, would you know that $27,900 between Friday and this past Monday grew to—you ready? This is incredible—$76,700, which is just amazing! And so what that means is that when we add this additional $42,000, that's going to put us at $118,700.
Now, you might be wondering, "Okay, how many ultrasounds is that?" That's 4,239 ultrasounds! Remember what that goal was that we had set? 1,500! Amazing! 4,200 women are going to have a free ultrasound that they would not have had otherwise because of your generosity.
So just know that we are incredibly grateful. You know, no matter the ministry—Preborn's incredible, American Family Radio and AFA's incredible—so many doing incredible work in the name of Jesus. When you give, you're bringing about God's redemptive work in the world. He's allowing you, through his resources entrusted to you, to participate in his good work! What an incredible privilege.
And so now you can know, if you were a part of that: yeah, I had a part in ladies, young moms coming to Christ, choosing life, being met with real, tangible needs, being served through Preborn. That's what you're participating in, and that's just, I think, a beautiful example of when money is a tool, what we can do to accomplish God's purposes.
So on behalf of our team here at FaithFi, a big thanks to the AFR listening community for showing up and being a part of that campaign. Remarkable!
All right, we're going to take your questions after the break: 800-525-7000.
Announcer: The mission of AFA is to inform, equip, and activate individuals and families to strengthen the moral foundations of American culture and give aid to the church here and abroad in its task of fulfilling the Great Commission. AFA upholds the truth that all human beings, including the unborn, are created in the image of God and are worthy of life, liberty, and the pursuit of happiness. Thank you for standing with the American Family Association.
Announcer: Millions of children throughout the world lack one simple item: shoes. This month, FaithFi and Buckner Shoes for Orphan Souls are partnering with you to provide hope to 1,000 children in need throughout the world by providing new shoes and socks, critical care, and the love of Jesus in some of the most vulnerable places. Visit giveshoestoday.org to learn how you can impact the lives of these children. That's giveshoestoday.org.
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Announcer: Wondering who FaithFi recommends as a banking partner that aligns with Christian values? It's AdelFi Christian Banking, the trusted team you've known as Christian Community Credit Union. With high-yield checking, savings, Visa cash back cards, and a competitive money market account, your everyday banking helps advance the gospel. Visit faithfi.com/banking and use the code FAITHFI. Membership eligibility required. Accounts are privately insured up to $250,000. This institution is not federally insured.
Announcer: I'm Chelsea Wildmon, Associate Director of the AFA Foundation. Occasionally, there are those that have a more complicated financial situation. If that's you, we would love to set up a phone consultation with our team and Rob West, host of FaithFi on American Family Radio. We will go over your specific situation. If you are interested, please give us a call at 1-800-326-4543, extension 345, or you can visit us at afafoundation.net.
Announcer: As the leading advocate for the Christian financial industry, Kingdom Advisors serves the public by promoting the integration of a biblical worldview across every aspect of the financial services industry. And we serve a growing network of thousands of Christian financial professionals, equipping and empowering them to carry biblical financial wisdom to their clients, peers, and community. For more information, visit kingdomadvisors.com. That's kingdomadvisors.com.
Rob West: Thanks for joining us today on Faith & Finance here on American American Family Radio. I'm Rob West. We're taking your questions today. Lines are filling up, but still two open at the moment: 800-525-7000. Again, that's 800-525-7000. Uh, let's dive in. Today, we're going to begin in North Carolina. Laurie, go right ahead.
Laurie: Hi, good morning.
Rob West: Good morning.
Laurie: I have a question about... um, several ones. I'm almost 63 and my husband is almost 73. And um, we have a a loan right now that's at 3% on our house for $140,000, and we have a about $300,000 in, you know, $300,000 to sell. Um, we really don't want to sell right now, so we're looking into a HELOC, um, an HEA or HECM loan, um, because we need to do some improvements on the house first.
Rob West: Hm. Yeah, got it. And how long do you think you're going to stay in this property if you do the improvements?
Laurie: Um, probably about three to five years.
Rob West: Okay, yeah. Yeah, I mean, at this point, I would not do an—certainly wouldn't do an HEA where you give away some of the equity of the home. Uh, and, um, you know, that's not something we, you know, would ever recommend. So essentially, for the benefit of our listening audience, this is where you get, uh, cash today in exchange for a contractual share of the home's future value or appreciation. It depends on the agreement. Uh, typically no monthly loan payments, no traditional interest rate, um, which does make it sometimes attractive to someone with limited cash flow, but I don't like it because you're giving away part of the home. Um, the, um, HELOC, you know, is probably the best way to go. You don't want to touch that low-rate first mortgage. I mean, that 3% mortgage, you know, people are wishing they could go back to the days where those were available, and, uh, rates, unfortunately, have been ticking up, not down, you know, in the high 6s. So, I would say leave that alone, and you're probably going to want to look at, so long as you can afford, you know, you can cash flow it over time and add it to your budget, you're going to want to look at that home equity line of credit where you borrow against the equity in the house, you get to draw the money as you need to up to a limit, which is actually pretty helpful with regard to, you know, any kind of renovations or major projects because often they take some time, maybe longer than we expect in many cases, to play out, and that allows you to just draw the money as you need to to pay the contractors, and therefore you're not paying interest on money that's sitting in your, your savings account. Um, so that would be the way I would go. I just want you to count the cost and make sure that that monthly payment with a, with a path toward paying it off, um, or at least servicing it till you sell the property and you can pay it off out of, out of equity, is sustainable for your budget. Uh, but if so, I like that a lot because now we're not giving up equity in the house, and the expenses are going to be much less. There are several banks right now, and this changes periodically, but several banks offering fee-free home equity lines of credit.
Laurie: Hm. How do you find those?
Rob West: Yeah, I would just, uh, do an internet search. I mean, I know at one point Bank of America was offering them, and then Truist had one that was, was fairly attractive. It, it changes depending on how much they have to, uh, to lend. So, I would just go online and just do a search for, probably Bankrate or NerdWallet, um, but I would just search for, uh, you know, best home equity lines of credit, uh, you know, no closing costs, you know, September 2026, or something like that. And then you're going to get a list because most of these sites, uh, are every month updating their list of who has the best credit cards, who has the best high-yield savings, who has the best home equity lines of credit today. And one of those categories, in addition to, you know, what is the interest rate, uh, or what is the introductory rate, maybe for a period of time, many of them have, you know, below-market, uh, interest rates, like maybe 4% instead of 7 for 6 months or something like that. But one of the other categories is what are their closing costs, and, you know, many times you will have some pretty reputable banks that are, you know, waiving the closing costs. You know, they'll cover the appraisal, and, and there's no origination fee or anything like that.
Laurie: Okay, great. And, uh, um, reverse mortgage is not a good idea?
Rob West: Well, not in this case, because with you, um, you know, looking to sell this property in the next 3 years, it's just going to be cost-prohibitive. I mean, if you were going to stay in this home indefinitely, and you said, "We want to tap into a line of credit. We haven't saved enough," you know, "and, and therefore being able to pull some of the equity to do improvements and never have a mortgage payment," um, "and, and be able to stay in this home, you know, for the rest of our lives," well, that makes a lot of sense. But if you're looking to sell it in 2 to 3 years, you know, the costs, uh, associated with the mortgage plus the FHA fee of 2%, um, you know, right up front is going to be cost-prohibitive for a home you're looking to sell in a, in a relatively short period of time.
Laurie: Makes sense. Okay. Well, thank you so much. I love your show, and I'm just so blessed to hear you.
Rob West: Well, thank you, Laurie. That's very kind of for you, and, or of you, and, uh, we're we're grateful for you as well. Stay on the line. We'll send you a copy of, uh, the latest issue of our magazine, Faithful Steward. It's our first special edition on women and wealth. I think you'll find it a blessing, and, uh, we'll be delighted to send it to you as our gift. Hang on, and, uh, we'll get your information. Let's go to Oklahoma. Hi Brian, go right ahead.
Brian: Hi, how you doing this morning? It's good good to talk to you. Thank you for taking my call.
Rob West: Thank you. Sure.
Brian: Uh, I had a question. Um, what's your thoughts on a company called Golden Reserve out of Ohio that does, uh, uh, basically retirement planning?
Rob West: Hm. Yeah. Uh, you know, I don't know them personally. I'm familiar with the, the, the idea, and I've heard Golden Reserve, but, uh, you know, in terms of specifically being able to vouch for it, I wouldn't. But essentially, they offer asset protection and long-term care planning, and they work with attorneys as a part of the planning model. Um, so it's a strategy that they're probably using as something called a Medicaid Asset Protection Trust. So, it's an irrevocable trust where you transfer certain assets. You are permanently, you know, giving them a away to the trust, so you you no longer control them. And the basic concept is that when you transfer assets and give up a sufficient amount of control or ownership, you start the 5-year Medicaid lookback clock. But after 5 years, properly protected assets could be treated as not available resources when determining Medicaid eligibility. Um, you know, I'd want to make sure you're with a godly estate planning attorney who can help you think that through that, both from a, you know, an ethical standpoint as well as a legal standpoint. But at the end of the day, that's what they do. I think you can do better by getting a local, godly estate planning attorney versus a company that's going to charge you a bit more like this one. We'll be right back.
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Announcer: Washington Watch with Tony Perkins. You look at three of the four justices there in Colorado that voted to remove him from the ballot. They all came from Ivy League schools, schools that had been created as divinity schools. What a picture of the apostasy in America when it comes to the church. Stay informed with Tony Perkins and his guests on Washington Watch, weekdays at 4:00 PM Central on AFR or catch up anytime with the podcast at afr.net.
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Rob West: Great to have you with us today on Faith & Finance here on American Family Radio. Hey, our new Faithful Steward special edition is out. It's called Women and Wealth. It's 80 pages. It's got 26 contributors. Just, oh man, it's beautiful. 15 all-women artists that have artwork throughout the entire edition, and it's just full of rich content.
The centerpiece of which is an incredible new study that our friends at Women Doing Well did, just on women, generosity, and stewardship. It's remarkable. You know, women are going to be the largest beneficiaries of the $124 trillion that will change hands over the next 40 years. And as that happens, it's amazing to think about just the opportunity that women are going to have to connect their passion and their purpose to the stewardship of the resources God has entrusted to them.
And so, this special edition leans into how you connect your identity to that of Christ, how you lean into collaborative giving circles, how you think about preparing the next generation depending on where you find yourself, your stage of life, stewardship wealth in each of those stages. If you'd like to be sure that you receive each copy of Faithful Steward, including this new special edition, just head to our website, faithfi.com/give, and consider becoming a partner. We've got nearly a thousand partners now, and they are the backbone to this ministry because partners, as a listener-supported ministry, make this possible. They support us at $35 a month or $400 a year.
And as a thank you, and to equip them even further, we provide all of our resources as they roll out: four issues of the magazine, all of our new studies and devotionals—including Randy Alcorn's new devotional that will be coming out the first of next year through FaithFi. We're so excited about it. It's his first devotional on money, 31 days on faith and finance. So all of that is available when you head to faithfi.com/give, and thanks in advance.
We're taking your calls and questions today. We do have a few lines open, so if you have a question, call right now: 800-525-7000. Let's go to Iowa and welcome—let's see. No, actually, we're going to head to Indiana. David, go ahead.
David: Hello?
Rob West: Hi there. How can I help you, David?
David: Yeah, I—it's kind of embarrassing, but you know, I messed up and didn't file taxes for several years. And my pastor had me—he told me about a company in California, and I contacted them. They filed the years that the government said that needed filed. And I got some money back from the government, but the state of Indiana has kept sending me letters saying I owe thousands of dollars for here and there. I don't know how much that is real, but I contacted that company and asked them, "You know, can you take care of this for me? Negotiate with them and help me out." And they told me basically that they can't help me out with Indiana, that I need to contact Indiana. And I just wonder if that's true, or if you know of a Christian place that I can trust that I could go to that can help me with this. I just want to do what's right and get this settled.
Rob West: Yeah, no, I certainly understand that. That's weighing on you heavy, David, and we want to get you caught up there. You know, a couple of thoughts here. I would say number one is, yes, I've got somebody that we work with at the federal level, but because what is remaining here for you is specifically around your state income taxes, I do think it'd be better for you to work with somebody in the state of Indiana.
If you don't have someone, perhaps call your church and just say, "Are there any CPAs in the church that I could be referred to?" Or maybe you could ask around. You certainly could reach out to a Certified Kingdom Advisor in Indiana and ask for a referral. And if you're comfortable on the web, David, you'd just go to findacka.com—findacka.com—and any of those Certified Kingdom Advisors would have a godly CPA that they could refer you to. And if you'd rather not get on the internet to do that search, you can hang on the line when we're done here and I'll have somebody contact you that can help you directly.
But I would say that's probably your next step. You know, the thing I would be encouraged about is that these states are very willing to work with you. So for instance, the State of Indiana Department of Revenue, they're going to offer you several ways to resolve these back taxes. They'll offer you a payment plan, generally up to 36 months. Now, penalties and interest continue, but at least it would give you something where you know you're making progress. They have hardship programs. There's even something called an "offer in compromise" where they will agree to accept less than the full amount owed if you can pay in full and if full collection would create an economic hardship.
There's also something right now that I've been made aware of here that is called the Indiana Tax Amnesty 2026, which is a program running through September the 9th for eligible tax liabilities from tax periods ending before January 1st, 2024—so that may or may not apply here—but where you can pay past-due tax and receive a waiver of the penalties, the interest, and the collection fees. And so that would be something you'd want to ask about, but you need to get moving on that one pretty quickly.
So bottom line is, there are options. You're going to get on top of this. You're going to feel a lot better when you do. You can contact them directly or you could get a referral to a CPA or enrolled agent who has some expertise in representing taxpayers before the state.
David: Okay. All right. Thank you, sir. I, yeah, I want to get this taken care of.
Rob West: I know you do.
David: When I stopped, it was back—I was really going through a depression at the time. My mother had just died, and I had four stents put in my chest at that time. And I thought I was going to die. And then the next thing I know, it just went on and on. And I went to one place here in Indiana, but the person I talked to, he basically wouldn't or couldn't help me, and he wouldn't refer me to anybody.
Rob West: Yeah. Well, we need to get you to someone else. First of all, I'm so glad to hear that the Lord brought you through that and you're doing better, it sounds like. And yeah, I can understand with all that going on, you were—probably the last thing you were thinking about was staying current on your taxes. You were just trying to make it through all these things that were coming at you.
But now let's get on top of it. You can, you will. You're going to find they're going to be willing to work with you. You have a desire to do what's right and honor this, and they're going to give you a plan to do that. So stay on the line, David, and my team will get your information. We can get somebody in touch with you to locate a Certified Kingdom Advisor there in Indiana that you could call to get a referral to a CPA who could help you—someone who shares your values as a Christ follower.
You can also contact the Indiana Department of Revenue directly and just ask them about resolution options. You could ask them about an installment or a payment agreement. You could ask them about penalty abatement, and they will tell you what the options are. But if you'd rather have somebody represent you and kind of handle this for you, that's where a CPA can come in.
David: Okay, thank you.
Rob West: All right, hold on the line. God bless you, my friend. Thank you for being on the program today.
Well, we're headed toward our final break of the morning, but then we'll be back for a final segment. We do have some great calls holding. We'll head out to Texas and talk to Paul. He wants to talk about moving some 401(k) and IRA money, possibly into an annuity. And then out to North Carolina, Joy has a will; she's moved and sold her home, bought a new one, and she's wanting to know, "Do I need to update that will?" That's a great question. That's something that often is neglected, and I'd love to weigh in on that.
Perhaps room for your question as well! We do have a few lines open, so if there's something happening in your financial life, now's the time to call. Here's the number: 800-525-7000. This is Faith & Finance. We'll be right back.
Announcer: Hi, I'm Tim Moore, senior evangelist on Christ in Prophecy. With all the uncertainty in the world today, it's good to know that God's promises never change. On Christ in Prophecy, we'll examine the signs of the times and consider what's really happening in the world today through the lens of God's prophetic word. To hear more biblical hope for the future, join me for Christ in Prophecy, Sundays at 11:00 a.m. Central right here on American Family Radio and find out what's really going on in the world.
Announcer: The Awakening with Bishop E.W. Jackson. We have not been made the greatest nation in the history of mankind by denigrating God. We have become the greatest nation on earth because we are a nation that acknowledged Almighty God to be the source of our values, our rights, our liberties, and that, therefore, we are accountable to Him. The Awakening on the podcast page at AFR.net.
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Rob West: So glad to have you with us today on Faith and Finance here on American Family Radio, helping you see Christ as your ultimate treasure. God is the owner of everything you've been entrusted with. That makes you a steward, and that makes money a tool to accomplish God's purposes. That's why we want to help you see and understand each day through the lens of God's word as you address your own financial journey. And here's what I've come to believe: that our financial journey is one of the key ways God shapes our spiritual journey. You know, it's almost spiritual formation at its core because you're working out your values and your priorities every day as you manage God's money and make decisions. Well, we want to help you do that. We know wise counsel is a big part of what God's word affirms, and so we hope we can be part of that wise counsel to you, pointing you back to Scripture and helping you navigate those very specific questions you're facing today. So with your questions, we do have one line open, actually a couple lines open: 800-525-7000. Let's go out to Texas. Paul, go ahead, sir.
Paul: Good morning, Rob. Thank you. Good morning. Thank you for taking my call. I really appreciate all you do for people. Okay, so I am still working, and I'm 59 and a half. And I have been working with a financial advisor I kind of met somewhere, and she seems real logical—things that she's telling me. But she had mentioned I should take, you know, my money from my 401(k) and my money I have in an IRA—I have a Schwab account—and bring them together. It's about $350,000. And then, you know, take the money out of the 401(k) because I'm over 59 and a half, there shouldn't be any penalty, right? So, and then put it into an annuity because she said—she was concerned that, you know, if I retire when I'm 65 or 66 or whatever, she thought, you know, it would be safe there. And then it would also give me enough money to meet my budget in the future. And it looks all great. I mean, because when I retire, I thought, well, if I had $3,500 a month, this annuity should do it. And she showed me all the numbers, but I thought, "Wow, that's a lot of money. That's all my 401(k) money, IRA money that I have, put it all in one basket." And I was just kind of concerned about that.
Rob West: Yeah, yeah. You know, that wouldn't be my first choice, but I want to talk through it because there's not a right or wrong answer here. I think the first question is always: What problem—in this case at least—what problem is the annuity trying to solve? Because you've already got it in a tax-deferred environment. Why would the annuity make sense? Well, potentially to create guaranteed lifetime income, potentially to reduce exposure to market losses, or maybe to obtain an income or a death benefit guarantee. But with each of those comes a tradeoff. You know, there's a cost to reduced exposure in the market. There's a cost to guaranteed lifetime income, and we just need to make sure that the cost of buying each of these features is worth what you're ultimately trying to solve for. But let me clarify one important thing, and that is you said the advisor said that you would take it out. Do you think she means a taxable distribution of the $350,000—the entire amount—to purchase the annuity, or do you think she's talking about rolling it to a qualified annuity and keeping it in a tax-deferred environment?
Paul: She gave me a form. I think it's rolling it over, so it wouldn't be—yeah, the 1035 exchange rollover.
Rob West: Yeah, okay, yeah. So that would not create a taxable event. However, you know, there are implications to how it's taxed when it comes out. But tell me, in your mind, what is your understanding of what the goal is here? What is the annuity accomplishing for you that is different than what you already have in the 401(k) or the IRA?
Paul: She told me it's going to protect me from any fluctuation in the market, like downtrends and stuff like that. So she said, "At your age, and you're looking to retire, you should worry about the risk and should try to protect what you have already and try to save it and not have less risk." And then she showed me the numbers; I couldn't believe how much I would have at the end because after the sixth year, I could start taking the money out. And then there's—it's a fixed annuity; it's a Safe Income Advantage from Fidelity and Guaranty Life Insurance Company. And the numbers looked unbelievable. I couldn't believe what I saw. It actually would be more money for the rest of my life as opposed to—or whatever the period was. And then I kind of asked her, I said, "Can you share some more details about that?" So she's writing up documentation right now, she's going to send it to me because I had all these questions. But I really don't know anything about annuities. So...
Rob West: Yeah, yeah. Well, yeah, that's where I'd slow down a little bit because annuity illustrations can look amazing and still be completely legitimate, but the headline number may not mean what you think it means. So if it's a fixed indexed annuity with an income rider, one of the first things I'd look for is whether the illustration is showing what's called an income base or a benefit base growing rapidly. And that number is often used to calculate future guaranteed income, but it's not the actual cash or account value that you can withdraw. So, SEC-filed annuity contracts illustrate this distinction between the protected income base—which often has bonuses involved in that to boost it, and then they base the income off of it—versus the actual contract value that you could surrender and get your money out or leave it to heirs. So $350,000 today might be $500,000 in income value in year six, which would generate $250,000 a year in guaranteed income, but that doesn't mean you have $500,000 available to cash out in year six. That $500,000 might simply be the number against which the insurer applies an income withdrawal percentage. And there's nothing wrong with that, but the guarantee is quite valuable. But I would want to know, and for you to understand, what you're buying. Because the tradeoffs—what is the cost that I have to pay in a sense to get this downside protection? Well, the tradeoffs are surrender charges, limited liquidity—it's difficult to get to your money, at least without penalties—rider costs, less upside than owning the market directly. So, those are typically the downside. Most notably that last one, where you're giving up potential market growth in exchange for the protection, because here's why: You can manage the downside risk through a properly diversified stock and bond portfolio, still get 100% of the upside. So like in a year like we've had recently where the market's up 20, you might get 7, and the insurance company is going to keep the difference. Well, it's those up 20 and 24 and 25 years over the last 100 years that gave us these average annual returns on the S&P 500 that are remarkable. But when you take those out because your upside is limited, you know, it drops dramatically. And keep in mind, those average annual returns also take the down years, where we had the crash of '87, and we had the dot-com bubble burst. So even when you put in all of those really significant market declines and recessions and crashes and corrections, when you put in all the upside in a properly diversified portfolio, that's where you do well over time. And so that would be the only thing I'd be hesitant on. At the very least, I wouldn't put all of it into an annuity; I might just put a portion of it. But even then, I kind of prefer you having more control over it, having access to it if you need it, yes, taking the downside risk, but managing that through the selections of the investment portfolio, and making sure that whatever percent you have in stocks, you don't need for 10 years. So it doesn't matter if the market's down 30% and your stock portion's down with it, because you've got enough in the stable-type investments that that's going to provide all the income you need, and you can let that come back, which it always has, whether it was the Great Recession, the pandemic, you name it; the market always comes back and moves to new highs. So anyway, I just want to give you the other side of it so you can think fully about the decision you're making here, if that makes sense.
Paul: Okay. Income base or benefit base, you mentioned that. And then I need to look, okay. I'm not sure I understand the difference between those two.
Rob West: Yeah, so essentially what they're doing with the income base is they're saying, "We're going to give you a bonus that's going to inflate the income base faster than the cash base is actually growing." Well, why do they do that? Well, the income base is the number that they use to determine how much income you are going to receive. And so if there's an income rider that you pay for, and in year six they're going to start sending you a check, well, the reason they're able to get to that number that they're sending you is because that income base has been growing faster than the benefit base. And so that's helpful to you, but I just want you to understand that's not the same thing as the account value that is able to be withdrawn. That's essentially an artificial number—yes, it's higher, and yes, it's being used to determine how much income they're sending you based on the guarantee—but it's not a real amount that could be taken out.
Paul: Okay. Okay, interesting. All righty.
Rob West: And that makes these illustrations look really compelling. But I think the bigger question at the end of the day is: Do I want to take all this money that right now is in a great tax-deferred environment, can be invested any way I want, and I could hire a Certified Kingdom Advisor to manage it, and make sure it stays completely liquid so I can get to it whether I need a monthly income or a larger amount for long-term care or something down the road? Or do I want to lock it up inside an insurance company? Yes, there's benefits to that: downside protection, income base that's growing faster than the account, a nice stream of income. But there's tradeoffs that come with that, and I just need to make sure I'm willing to accept those. And I need to decide, do I want to put 100% of my retirement assets into a product like this? Or, if I like some of the features, would I rather maybe take a portion of it? Maybe $100,000 goes into a qualified annuity and the rest gets invested with an advisor who's managing it. Don't get caught in a binary trap: It's got to be this or that; maybe there's a third option. Hey, really appreciate your call today, Paul. I hope I've given you a few things to think of, and grateful for your willingness to join the program. Deborah, Julia, William, I apologize we couldn't get to you. Let's see if we can get you first up on tomorrow's broadcast. Thanks for joining us on Faith and Finance. Big thanks to my team as well. We'll see you tomorrow. Bye-bye.
Announcer: The views and opinions expressed in this broadcast may not necessarily reflect those of the American Family Association or American Family Radio.
Rob West: Where you bank may seem like a purely practical decision, but it can also be a part of your stewardship. Hi, I'm Rob West. As Christians, every financial decision is an opportunity to manage God's resources faithfully. Today, Aaron Caid joins us to talk about financial discipleship, Christian banking, and how our everyday financial choices can support Kingdom work. And then it's on to your calls at 800-525-7000. This is Faith & Finance on American Family Radio. Biblical wisdom for your financial decisions.
Well, it's always a pleasure to have Aaron Caid with us. Aaron is Chief Marketing Officer at AdelFi Christian Banking and underwriter of this program. AdelFi has been serving Christians for decades, helping individuals and families align their everyday banking decisions with their faith and values. Aaron, great to have you back.
Aaron Caid: Thanks, Rob. It's great to be here with you.
Rob West: Aaron, we talk about biblical stewardship on this program every day, but I'd love for you to talk about how stewardship shapes the way a Christian financial institution approaches banking differently.
Aaron Caid: Well, for Christians, our financial decisions are an act of stewardship—managing what God has graciously given to us.
Rob West: That's right.
Aaron Caid: So whether it's a family preparing for its future, a church expanding its outreach, or a ministry planning its budget, money touches nearly every part of our lives. At AdelFi, our purpose is to serve Christ-followers and ministries to faithfully steward God's resources to advance the Gospel. We provide the practical financial tools they need while keeping biblical stewardship at the center.
Rob West: Mm. And we talk about the size and strength of AdelFi Christian Banking. As a strong Christian financial institution, Aaron, how does that expand the ways AdelFi can serve others?
Aaron Caid: Well, it gives us a greater capacity to serve—with more resources, expertise, technology, and financial solutions. So for families, that can mean managing daily banking, building savings, or borrowing wisely. For churches and ministries, it means working with people who understand you, who understand your cash flow, your property needs, and your long-term vision.
Rob West: Yeah, that's exactly right. I'd love for you to give us an example. I know, for instance, AdelFi came alongside a church in California in a really meaningful way following the pandemic. Share that story.
Aaron Caid: Yeah, I love this example. I mean, during the pandemic lockdown, when churches in Southern California could not meet indoors, Calvary Chapel South Orange County faithfully held Sunday services outdoors in an outlet mall parking lot. And God blessed their work. Their congregation grew exponentially during the pandemic and was larger than their indoor meeting space could accommodate. They needed a larger building that could accommodate their growing congregation.
So AdelFi partnered with them and provided a loan that allowed them to purchase a large property. But it was more than just dollars and cents; it was about people. They now had a place to get plugged in, maintain community, and keep growing together as a congregation.
Rob West: Mm. What does financial discipleship look like in the everyday choices we make with money, Aaron?
Aaron Caid: Yeah. Well, financial discipleship is not about getting rich. It's about cultivating wisdom, contentment, generosity, and faithfulness. You know, and Jesus reminds us of this in Matthew chapter 6 that we cannot serve both God and money, and that where our treasure is, there our heart will be also. Our money belongs to God and is entrusted to us for a purpose. So healthy habits like following a realistic budget and avoiding unnecessary debt can help us align our finances with God's priorities.
Rob West: I think that's right. And let's finish with perhaps how we can choose a bank that becomes a part of the Kingdom impact we make with our money. What does that look like?
Aaron Caid: Well, when members invest in a Christian financial institution, like AdelFi Christian Banking, they're putting their money back into Kingdom work. At AdelFi, we understand the heart behind our members, and that helps us serve families, churches, and ministries in ways that reflect their faith. You know, to date, we have funded more than $1 billion in ministry real estate loans.
Rob West: Wow.
Aaron Caid: We've been able to come alongside ministries with solutions that are both financially responsible and mission-aware. We also offer credit cards that allow members to earn cash back while automatically giving to Christian ministries and missions. It's another way we seek to benefit our members while advancing God's kingdom.
Rob West: Yeah, and I love that product. Folks, where we choose to bank is part of how we steward the resources God has entrusted to us. And choosing a financial institution that shares your values can help ensure those everyday decisions also support the work that advances the Gospel. Aaron, so great to have you with us today. Thanks for joining us.
Aaron Caid: It's been my pleasure, Rob.
Rob West: That's Aaron Caid with AdelFi Christian Banking. One way AdelFi helps members connect their everyday financial decisions with Kingdom impact is through its Cash Rewards Visa. To learn more, visit faithfi.com/banking. Apply by December 31st and you can earn a $200 bonus, plus 1.5% cash back on every purchase and other benefits. And with every swipe, AdelFi gives to Christian charities. Again, that's faithfi.com/banking. That's faithfi.com/banking. Back with your calls after this. Stick around.
David Wollen: For your walk with Jesus, I'm David Wollen with Haven Today, inviting you to anchor your day in God's word. The sinless perfection of Jesus is hard to imagine. He was fully human like us, and he was tempted like us, except he never gave in. Hebrews chapter 5 tells us he learned obedience through what he suffered. In other words, although Jesus had always been fully God, up until he became man, he'd never been in our shoes, experiencing our weakness. So today, when you and I are tempted, we're facing something Jesus knows all about. 1 Corinthians tells us, "When you are tempted, he will also provide a way out so that you can endure it." Are you facing temptation? Pray and take him up on the promise. Get more encouragement for your walk, visit haventoday.org.
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Announcer: It affirms what I know: that God never changes. He's the only one you can count on to be the same. When we change and that change affects our relationship to him, there will be consequences, but it's not God changing. Dr. David Jeremiah continues his series, "Jonah: The Runaway Prophet," next time on Turning Point. 5:30 AM and 7:00 PM Central on American Family Radio.
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Rob West: Hey, great to have you with us today on Faith & Finance here on American Family Radio. I'm Rob West. We're taking your calls and questions today, and we've got plenty of time for it. So now is a great time to call the number 800-525-7000.
What types of questions? Well, any financial question on your mind today. We'd love to help you to press into what God is doing in your life, recognizing we want to connect meaning to money, right? Money is a tool to accomplish God's purposes, and so we want to allow that tool to intersect with how God has wired us, and the passions and desires he's given us to serve his kingdom, aligned with the things that break our heart. And that's through our giving, and our ability to provide and prepare the next steward, and to bless them, and to enjoy God's resources.
But we also know that along the way, you're going to have almost daily questions that you're wrestling with as you give and save and spend, and that's what we want to tackle with you today—help you get those practical answers you're looking for and do it in light of biblical wisdom.
So you can call right now; we've got some lines open: 800-525-7000. We would love to hear from you today: 800-525-7000. The team is standing by; you can call with those questions on any financial topic right now.
In the news today, eligible Trump Account holders are now receiving a $250 grant from the Dell Foundation after deposits began this week. The grant is available to children born between 2016 and 2024 who live in zip codes with median household incomes of $150,000 or less. Parents and guardians can check eligibility through InvestAmerica and track account activity through the Trump Accounts app, which, by the way, I will say that Trump Account app is really nice. They did a great job with it.
Now, Trump Accounts, known also as 530A accounts—that's the IRS section where the code is found—they're available to U.S. children under age 18 with Social Security numbers. Now, keep in mind, children born between 2025 and 2028 may also qualify for a one-time $1,000 federal deposit, but Michael and Susan Dell committed $6.25 billion with a "b" to provide additional funding for children who don't qualify for the federal seed money. The initiative could ultimately reach about 25 million children nationwide.
I will say, we know this is working because one of our team members actually has kids that fit into this range and had the $250 grant deposited in his kid's accounts. And so, what an opportunity here. Don't miss this. trumpaccounts.gov is where you can get more information.
Now, a lot of people wonder, you know, "How should I think about this in terms of... should I use a 529 plan, should I use a Trump Account, which is better?" Here's what I would say: if you believe that the first place that the savings you're putting aside for your kids is going to go is related to education, you really can't beat the 529. I mean, that money is going to go in after tax, but like a Roth, it's going to grow tax-free, and as long as you use it for qualified educational expenses, you're going to be able to pull it out without paying any tax.
Not so with the Trump Account. Think about that like a longer-term and treated like a traditional IRA, in the sense that as you pull that money out, you are going to pay taxes on the gains as income. That's not the case with the 529.
So, don't miss the opportunity to get that automatic deposit, but just consider whether the Trump Account or the 529 is better—in some cases both, in other cases one or the other—depending on the goal, how you want the money to be used, and the time horizon.
But I mentioned that team member, and we were talking this morning. He actually calculated what that $1,000 initial contribution would be if it grew on a relatively conservative basis, maybe equal to what the historical annualized return has been in the stock market. And if that child doesn't touch that money until age 60, guess what that $1,000 is going to be worth: more than a million dollars!
Amazing, isn't it? A one-time deposit, $1,000, growing and compounding from, you know, the age of deposit all the way to age 60, again assuming they don't touch it, over a million dollars. So, what a way to seed a retirement with a minimal amount of money—in this case, not even money that you're putting in, the government's doing it for you, the Treasury—if it's invested, it's left alone, could be a meaningful part of a retirement account someday. Don't miss that. What an opportunity.
And what a great teaching point as well for your kids as you begin to talk about the power of compounding. They're not going to believe it! And so it gives you a great springboard into what they might be missing or perhaps don't understand related to the powerful effect of compounding.
So, don't miss the Trump Accounts. It's rolling, including some of these extra deposits that are going out. Again, more information and details at trumpaccounts.gov, or you can download the Trump Accounts app in the App Store.
All right, hey, a quick update on Preborn. And by the way, in the next segment, we are going to dive into your questions. So if you have a question on any financial topic—maybe it's Social Security for you, or you've got some credit card debt you're wondering the best way to pay it down, maybe you're wondering a trust, a will, both, what other documents do I need for proper estate planning, or perhaps it's "How do I give wisely?"—any of those topics and more, call right now with your questions. We'll be taking these in the next segment: 800-525-7000. Again, that's 800-525-7000.
All right, Preborn. I just want to give you an update. Remember that ended on Monday. We had this three-month opportunity to highlight what God is doing through the ministry of Preborn as they bring free ultrasounds to moms with often unplanned pregnancies considering abortion. When they see their babies, well over half the time, they keep the baby. Preborn also shares the gospel with them. Preborn then journeys with them for up to three years: diapers and car seats and resources that are much needed. It's incredible what they're doing.
Now, we said as of last Friday, we were sitting at around, I think it was $27,900 had come in. And that included a $15,000 gift for one ultrasound machine. Then a Certified Kingdom Advisor called. He said, "I was listening to American Family Radio. I love what I'm hearing. I didn't know Preborn, you've introduced me to it. Whatever comes in when you tally it all up on Monday the 31st, this past Monday, we're going to double it up to $42,000."
Well, would you know that $27,900 between Friday and this past Monday grew to—you ready? This is incredible—$76,700, which is just amazing! And so what that means is that when we add this additional $42,000, that's going to put us at $118,700.
Now, you might be wondering, "Okay, how many ultrasounds is that?" That's 4,239 ultrasounds! Remember what that goal was that we had set? 1,500! Amazing! 4,200 women are going to have a free ultrasound that they would not have had otherwise because of your generosity.
So just know that we are incredibly grateful. You know, no matter the ministry—Preborn's incredible, American Family Radio and AFA's incredible—so many doing incredible work in the name of Jesus. When you give, you're bringing about God's redemptive work in the world. He's allowing you, through his resources entrusted to you, to participate in his good work! What an incredible privilege.
And so now you can know, if you were a part of that: yeah, I had a part in ladies, young moms coming to Christ, choosing life, being met with real, tangible needs, being served through Preborn. That's what you're participating in, and that's just, I think, a beautiful example of when money is a tool, what we can do to accomplish God's purposes.
So on behalf of our team here at FaithFi, a big thanks to the AFR listening community for showing up and being a part of that campaign. Remarkable!
All right, we're going to take your questions after the break: 800-525-7000.
Announcer: The mission of AFA is to inform, equip, and activate individuals and families to strengthen the moral foundations of American culture and give aid to the church here and abroad in its task of fulfilling the Great Commission. AFA upholds the truth that all human beings, including the unborn, are created in the image of God and are worthy of life, liberty, and the pursuit of happiness. Thank you for standing with the American Family Association.
Announcer: Millions of children throughout the world lack one simple item: shoes. This month, FaithFi and Buckner Shoes for Orphan Souls are partnering with you to provide hope to 1,000 children in need throughout the world by providing new shoes and socks, critical care, and the love of Jesus in some of the most vulnerable places. Visit giveshoestoday.org to learn how you can impact the lives of these children. That's giveshoestoday.org.
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Rob West: Thanks for joining us today on Faith & Finance here on American American Family Radio. I'm Rob West. We're taking your questions today. Lines are filling up, but still two open at the moment: 800-525-7000. Again, that's 800-525-7000. Uh, let's dive in. Today, we're going to begin in North Carolina. Laurie, go right ahead.
Laurie: Hi, good morning.
Rob West: Good morning.
Laurie: I have a question about... um, several ones. I'm almost 63 and my husband is almost 73. And um, we have a a loan right now that's at 3% on our house for $140,000, and we have a about $300,000 in, you know, $300,000 to sell. Um, we really don't want to sell right now, so we're looking into a HELOC, um, an HEA or HECM loan, um, because we need to do some improvements on the house first.
Rob West: Hm. Yeah, got it. And how long do you think you're going to stay in this property if you do the improvements?
Laurie: Um, probably about three to five years.
Rob West: Okay, yeah. Yeah, I mean, at this point, I would not do an—certainly wouldn't do an HEA where you give away some of the equity of the home. Uh, and, um, you know, that's not something we, you know, would ever recommend. So essentially, for the benefit of our listening audience, this is where you get, uh, cash today in exchange for a contractual share of the home's future value or appreciation. It depends on the agreement. Uh, typically no monthly loan payments, no traditional interest rate, um, which does make it sometimes attractive to someone with limited cash flow, but I don't like it because you're giving away part of the home. Um, the, um, HELOC, you know, is probably the best way to go. You don't want to touch that low-rate first mortgage. I mean, that 3% mortgage, you know, people are wishing they could go back to the days where those were available, and, uh, rates, unfortunately, have been ticking up, not down, you know, in the high 6s. So, I would say leave that alone, and you're probably going to want to look at, so long as you can afford, you know, you can cash flow it over time and add it to your budget, you're going to want to look at that home equity line of credit where you borrow against the equity in the house, you get to draw the money as you need to up to a limit, which is actually pretty helpful with regard to, you know, any kind of renovations or major projects because often they take some time, maybe longer than we expect in many cases, to play out, and that allows you to just draw the money as you need to to pay the contractors, and therefore you're not paying interest on money that's sitting in your, your savings account. Um, so that would be the way I would go. I just want you to count the cost and make sure that that monthly payment with a, with a path toward paying it off, um, or at least servicing it till you sell the property and you can pay it off out of, out of equity, is sustainable for your budget. Uh, but if so, I like that a lot because now we're not giving up equity in the house, and the expenses are going to be much less. There are several banks right now, and this changes periodically, but several banks offering fee-free home equity lines of credit.
Laurie: Hm. How do you find those?
Rob West: Yeah, I would just, uh, do an internet search. I mean, I know at one point Bank of America was offering them, and then Truist had one that was, was fairly attractive. It, it changes depending on how much they have to, uh, to lend. So, I would just go online and just do a search for, probably Bankrate or NerdWallet, um, but I would just search for, uh, you know, best home equity lines of credit, uh, you know, no closing costs, you know, September 2026, or something like that. And then you're going to get a list because most of these sites, uh, are every month updating their list of who has the best credit cards, who has the best high-yield savings, who has the best home equity lines of credit today. And one of those categories, in addition to, you know, what is the interest rate, uh, or what is the introductory rate, maybe for a period of time, many of them have, you know, below-market, uh, interest rates, like maybe 4% instead of 7 for 6 months or something like that. But one of the other categories is what are their closing costs, and, you know, many times you will have some pretty reputable banks that are, you know, waiving the closing costs. You know, they'll cover the appraisal, and, and there's no origination fee or anything like that.
Laurie: Okay, great. And, uh, um, reverse mortgage is not a good idea?
Rob West: Well, not in this case, because with you, um, you know, looking to sell this property in the next 3 years, it's just going to be cost-prohibitive. I mean, if you were going to stay in this home indefinitely, and you said, "We want to tap into a line of credit. We haven't saved enough," you know, "and, and therefore being able to pull some of the equity to do improvements and never have a mortgage payment," um, "and, and be able to stay in this home, you know, for the rest of our lives," well, that makes a lot of sense. But if you're looking to sell it in 2 to 3 years, you know, the costs, uh, associated with the mortgage plus the FHA fee of 2%, um, you know, right up front is going to be cost-prohibitive for a home you're looking to sell in a, in a relatively short period of time.
Laurie: Makes sense. Okay. Well, thank you so much. I love your show, and I'm just so blessed to hear you.
Rob West: Well, thank you, Laurie. That's very kind of for you, and, or of you, and, uh, we're we're grateful for you as well. Stay on the line. We'll send you a copy of, uh, the latest issue of our magazine, Faithful Steward. It's our first special edition on women and wealth. I think you'll find it a blessing, and, uh, we'll be delighted to send it to you as our gift. Hang on, and, uh, we'll get your information. Let's go to Oklahoma. Hi Brian, go right ahead.
Brian: Hi, how you doing this morning? It's good good to talk to you. Thank you for taking my call.
Rob West: Thank you. Sure.
Brian: Uh, I had a question. Um, what's your thoughts on a company called Golden Reserve out of Ohio that does, uh, uh, basically retirement planning?
Rob West: Hm. Yeah. Uh, you know, I don't know them personally. I'm familiar with the, the, the idea, and I've heard Golden Reserve, but, uh, you know, in terms of specifically being able to vouch for it, I wouldn't. But essentially, they offer asset protection and long-term care planning, and they work with attorneys as a part of the planning model. Um, so it's a strategy that they're probably using as something called a Medicaid Asset Protection Trust. So, it's an irrevocable trust where you transfer certain assets. You are permanently, you know, giving them a away to the trust, so you you no longer control them. And the basic concept is that when you transfer assets and give up a sufficient amount of control or ownership, you start the 5-year Medicaid lookback clock. But after 5 years, properly protected assets could be treated as not available resources when determining Medicaid eligibility. Um, you know, I'd want to make sure you're with a godly estate planning attorney who can help you think that through that, both from a, you know, an ethical standpoint as well as a legal standpoint. But at the end of the day, that's what they do. I think you can do better by getting a local, godly estate planning attorney versus a company that's going to charge you a bit more like this one. We'll be right back.
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Rob West: Great to have you with us today on Faith & Finance here on American Family Radio. Hey, our new Faithful Steward special edition is out. It's called Women and Wealth. It's 80 pages. It's got 26 contributors. Just, oh man, it's beautiful. 15 all-women artists that have artwork throughout the entire edition, and it's just full of rich content.
The centerpiece of which is an incredible new study that our friends at Women Doing Well did, just on women, generosity, and stewardship. It's remarkable. You know, women are going to be the largest beneficiaries of the $124 trillion that will change hands over the next 40 years. And as that happens, it's amazing to think about just the opportunity that women are going to have to connect their passion and their purpose to the stewardship of the resources God has entrusted to them.
And so, this special edition leans into how you connect your identity to that of Christ, how you lean into collaborative giving circles, how you think about preparing the next generation depending on where you find yourself, your stage of life, stewardship wealth in each of those stages. If you'd like to be sure that you receive each copy of Faithful Steward, including this new special edition, just head to our website, faithfi.com/give, and consider becoming a partner. We've got nearly a thousand partners now, and they are the backbone to this ministry because partners, as a listener-supported ministry, make this possible. They support us at $35 a month or $400 a year.
And as a thank you, and to equip them even further, we provide all of our resources as they roll out: four issues of the magazine, all of our new studies and devotionals—including Randy Alcorn's new devotional that will be coming out the first of next year through FaithFi. We're so excited about it. It's his first devotional on money, 31 days on faith and finance. So all of that is available when you head to faithfi.com/give, and thanks in advance.
We're taking your calls and questions today. We do have a few lines open, so if you have a question, call right now: 800-525-7000. Let's go to Iowa and welcome—let's see. No, actually, we're going to head to Indiana. David, go ahead.
David: Hello?
Rob West: Hi there. How can I help you, David?
David: Yeah, I—it's kind of embarrassing, but you know, I messed up and didn't file taxes for several years. And my pastor had me—he told me about a company in California, and I contacted them. They filed the years that the government said that needed filed. And I got some money back from the government, but the state of Indiana has kept sending me letters saying I owe thousands of dollars for here and there. I don't know how much that is real, but I contacted that company and asked them, "You know, can you take care of this for me? Negotiate with them and help me out." And they told me basically that they can't help me out with Indiana, that I need to contact Indiana. And I just wonder if that's true, or if you know of a Christian place that I can trust that I could go to that can help me with this. I just want to do what's right and get this settled.
Rob West: Yeah, no, I certainly understand that. That's weighing on you heavy, David, and we want to get you caught up there. You know, a couple of thoughts here. I would say number one is, yes, I've got somebody that we work with at the federal level, but because what is remaining here for you is specifically around your state income taxes, I do think it'd be better for you to work with somebody in the state of Indiana.
If you don't have someone, perhaps call your church and just say, "Are there any CPAs in the church that I could be referred to?" Or maybe you could ask around. You certainly could reach out to a Certified Kingdom Advisor in Indiana and ask for a referral. And if you're comfortable on the web, David, you'd just go to findacka.com—findacka.com—and any of those Certified Kingdom Advisors would have a godly CPA that they could refer you to. And if you'd rather not get on the internet to do that search, you can hang on the line when we're done here and I'll have somebody contact you that can help you directly.
But I would say that's probably your next step. You know, the thing I would be encouraged about is that these states are very willing to work with you. So for instance, the State of Indiana Department of Revenue, they're going to offer you several ways to resolve these back taxes. They'll offer you a payment plan, generally up to 36 months. Now, penalties and interest continue, but at least it would give you something where you know you're making progress. They have hardship programs. There's even something called an "offer in compromise" where they will agree to accept less than the full amount owed if you can pay in full and if full collection would create an economic hardship.
There's also something right now that I've been made aware of here that is called the Indiana Tax Amnesty 2026, which is a program running through September the 9th for eligible tax liabilities from tax periods ending before January 1st, 2024—so that may or may not apply here—but where you can pay past-due tax and receive a waiver of the penalties, the interest, and the collection fees. And so that would be something you'd want to ask about, but you need to get moving on that one pretty quickly.
So bottom line is, there are options. You're going to get on top of this. You're going to feel a lot better when you do. You can contact them directly or you could get a referral to a CPA or enrolled agent who has some expertise in representing taxpayers before the state.
David: Okay. All right. Thank you, sir. I, yeah, I want to get this taken care of.
Rob West: I know you do.
David: When I stopped, it was back—I was really going through a depression at the time. My mother had just died, and I had four stents put in my chest at that time. And I thought I was going to die. And then the next thing I know, it just went on and on. And I went to one place here in Indiana, but the person I talked to, he basically wouldn't or couldn't help me, and he wouldn't refer me to anybody.
Rob West: Yeah. Well, we need to get you to someone else. First of all, I'm so glad to hear that the Lord brought you through that and you're doing better, it sounds like. And yeah, I can understand with all that going on, you were—probably the last thing you were thinking about was staying current on your taxes. You were just trying to make it through all these things that were coming at you.
But now let's get on top of it. You can, you will. You're going to find they're going to be willing to work with you. You have a desire to do what's right and honor this, and they're going to give you a plan to do that. So stay on the line, David, and my team will get your information. We can get somebody in touch with you to locate a Certified Kingdom Advisor there in Indiana that you could call to get a referral to a CPA who could help you—someone who shares your values as a Christ follower.
You can also contact the Indiana Department of Revenue directly and just ask them about resolution options. You could ask them about an installment or a payment agreement. You could ask them about penalty abatement, and they will tell you what the options are. But if you'd rather have somebody represent you and kind of handle this for you, that's where a CPA can come in.
David: Okay, thank you.
Rob West: All right, hold on the line. God bless you, my friend. Thank you for being on the program today.
Well, we're headed toward our final break of the morning, but then we'll be back for a final segment. We do have some great calls holding. We'll head out to Texas and talk to Paul. He wants to talk about moving some 401(k) and IRA money, possibly into an annuity. And then out to North Carolina, Joy has a will; she's moved and sold her home, bought a new one, and she's wanting to know, "Do I need to update that will?" That's a great question. That's something that often is neglected, and I'd love to weigh in on that.
Perhaps room for your question as well! We do have a few lines open, so if there's something happening in your financial life, now's the time to call. Here's the number: 800-525-7000. This is Faith & Finance. We'll be right back.
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Rob West: So glad to have you with us today on Faith and Finance here on American Family Radio, helping you see Christ as your ultimate treasure. God is the owner of everything you've been entrusted with. That makes you a steward, and that makes money a tool to accomplish God's purposes. That's why we want to help you see and understand each day through the lens of God's word as you address your own financial journey. And here's what I've come to believe: that our financial journey is one of the key ways God shapes our spiritual journey. You know, it's almost spiritual formation at its core because you're working out your values and your priorities every day as you manage God's money and make decisions. Well, we want to help you do that. We know wise counsel is a big part of what God's word affirms, and so we hope we can be part of that wise counsel to you, pointing you back to Scripture and helping you navigate those very specific questions you're facing today. So with your questions, we do have one line open, actually a couple lines open: 800-525-7000. Let's go out to Texas. Paul, go ahead, sir.
Paul: Good morning, Rob. Thank you. Good morning. Thank you for taking my call. I really appreciate all you do for people. Okay, so I am still working, and I'm 59 and a half. And I have been working with a financial advisor I kind of met somewhere, and she seems real logical—things that she's telling me. But she had mentioned I should take, you know, my money from my 401(k) and my money I have in an IRA—I have a Schwab account—and bring them together. It's about $350,000. And then, you know, take the money out of the 401(k) because I'm over 59 and a half, there shouldn't be any penalty, right? So, and then put it into an annuity because she said—she was concerned that, you know, if I retire when I'm 65 or 66 or whatever, she thought, you know, it would be safe there. And then it would also give me enough money to meet my budget in the future. And it looks all great. I mean, because when I retire, I thought, well, if I had $3,500 a month, this annuity should do it. And she showed me all the numbers, but I thought, "Wow, that's a lot of money. That's all my 401(k) money, IRA money that I have, put it all in one basket." And I was just kind of concerned about that.
Rob West: Yeah, yeah. You know, that wouldn't be my first choice, but I want to talk through it because there's not a right or wrong answer here. I think the first question is always: What problem—in this case at least—what problem is the annuity trying to solve? Because you've already got it in a tax-deferred environment. Why would the annuity make sense? Well, potentially to create guaranteed lifetime income, potentially to reduce exposure to market losses, or maybe to obtain an income or a death benefit guarantee. But with each of those comes a tradeoff. You know, there's a cost to reduced exposure in the market. There's a cost to guaranteed lifetime income, and we just need to make sure that the cost of buying each of these features is worth what you're ultimately trying to solve for. But let me clarify one important thing, and that is you said the advisor said that you would take it out. Do you think she means a taxable distribution of the $350,000—the entire amount—to purchase the annuity, or do you think she's talking about rolling it to a qualified annuity and keeping it in a tax-deferred environment?
Paul: She gave me a form. I think it's rolling it over, so it wouldn't be—yeah, the 1035 exchange rollover.
Rob West: Yeah, okay, yeah. So that would not create a taxable event. However, you know, there are implications to how it's taxed when it comes out. But tell me, in your mind, what is your understanding of what the goal is here? What is the annuity accomplishing for you that is different than what you already have in the 401(k) or the IRA?
Paul: She told me it's going to protect me from any fluctuation in the market, like downtrends and stuff like that. So she said, "At your age, and you're looking to retire, you should worry about the risk and should try to protect what you have already and try to save it and not have less risk." And then she showed me the numbers; I couldn't believe how much I would have at the end because after the sixth year, I could start taking the money out. And then there's—it's a fixed annuity; it's a Safe Income Advantage from Fidelity and Guaranty Life Insurance Company. And the numbers looked unbelievable. I couldn't believe what I saw. It actually would be more money for the rest of my life as opposed to—or whatever the period was. And then I kind of asked her, I said, "Can you share some more details about that?" So she's writing up documentation right now, she's going to send it to me because I had all these questions. But I really don't know anything about annuities. So...
Rob West: Yeah, yeah. Well, yeah, that's where I'd slow down a little bit because annuity illustrations can look amazing and still be completely legitimate, but the headline number may not mean what you think it means. So if it's a fixed indexed annuity with an income rider, one of the first things I'd look for is whether the illustration is showing what's called an income base or a benefit base growing rapidly. And that number is often used to calculate future guaranteed income, but it's not the actual cash or account value that you can withdraw. So, SEC-filed annuity contracts illustrate this distinction between the protected income base—which often has bonuses involved in that to boost it, and then they base the income off of it—versus the actual contract value that you could surrender and get your money out or leave it to heirs. So $350,000 today might be $500,000 in income value in year six, which would generate $250,000 a year in guaranteed income, but that doesn't mean you have $500,000 available to cash out in year six. That $500,000 might simply be the number against which the insurer applies an income withdrawal percentage. And there's nothing wrong with that, but the guarantee is quite valuable. But I would want to know, and for you to understand, what you're buying. Because the tradeoffs—what is the cost that I have to pay in a sense to get this downside protection? Well, the tradeoffs are surrender charges, limited liquidity—it's difficult to get to your money, at least without penalties—rider costs, less upside than owning the market directly. So, those are typically the downside. Most notably that last one, where you're giving up potential market growth in exchange for the protection, because here's why: You can manage the downside risk through a properly diversified stock and bond portfolio, still get 100% of the upside. So like in a year like we've had recently where the market's up 20, you might get 7, and the insurance company is going to keep the difference. Well, it's those up 20 and 24 and 25 years over the last 100 years that gave us these average annual returns on the S&P 500 that are remarkable. But when you take those out because your upside is limited, you know, it drops dramatically. And keep in mind, those average annual returns also take the down years, where we had the crash of '87, and we had the dot-com bubble burst. So even when you put in all of those really significant market declines and recessions and crashes and corrections, when you put in all the upside in a properly diversified portfolio, that's where you do well over time. And so that would be the only thing I'd be hesitant on. At the very least, I wouldn't put all of it into an annuity; I might just put a portion of it. But even then, I kind of prefer you having more control over it, having access to it if you need it, yes, taking the downside risk, but managing that through the selections of the investment portfolio, and making sure that whatever percent you have in stocks, you don't need for 10 years. So it doesn't matter if the market's down 30% and your stock portion's down with it, because you've got enough in the stable-type investments that that's going to provide all the income you need, and you can let that come back, which it always has, whether it was the Great Recession, the pandemic, you name it; the market always comes back and moves to new highs. So anyway, I just want to give you the other side of it so you can think fully about the decision you're making here, if that makes sense.
Paul: Okay. Income base or benefit base, you mentioned that. And then I need to look, okay. I'm not sure I understand the difference between those two.
Rob West: Yeah, so essentially what they're doing with the income base is they're saying, "We're going to give you a bonus that's going to inflate the income base faster than the cash base is actually growing." Well, why do they do that? Well, the income base is the number that they use to determine how much income you are going to receive. And so if there's an income rider that you pay for, and in year six they're going to start sending you a check, well, the reason they're able to get to that number that they're sending you is because that income base has been growing faster than the benefit base. And so that's helpful to you, but I just want you to understand that's not the same thing as the account value that is able to be withdrawn. That's essentially an artificial number—yes, it's higher, and yes, it's being used to determine how much income they're sending you based on the guarantee—but it's not a real amount that could be taken out.
Paul: Okay. Okay, interesting. All righty.
Rob West: And that makes these illustrations look really compelling. But I think the bigger question at the end of the day is: Do I want to take all this money that right now is in a great tax-deferred environment, can be invested any way I want, and I could hire a Certified Kingdom Advisor to manage it, and make sure it stays completely liquid so I can get to it whether I need a monthly income or a larger amount for long-term care or something down the road? Or do I want to lock it up inside an insurance company? Yes, there's benefits to that: downside protection, income base that's growing faster than the account, a nice stream of income. But there's tradeoffs that come with that, and I just need to make sure I'm willing to accept those. And I need to decide, do I want to put 100% of my retirement assets into a product like this? Or, if I like some of the features, would I rather maybe take a portion of it? Maybe $100,000 goes into a qualified annuity and the rest gets invested with an advisor who's managing it. Don't get caught in a binary trap: It's got to be this or that; maybe there's a third option. Hey, really appreciate your call today, Paul. I hope I've given you a few things to think of, and grateful for your willingness to join the program. Deborah, Julia, William, I apologize we couldn't get to you. Let's see if we can get you first up on tomorrow's broadcast. Thanks for joining us on Faith and Finance. Big thanks to my team as well. We'll see you tomorrow. Bye-bye.
Announcer: The views and opinions expressed in this broadcast may not necessarily reflect those of the American Family Association or American Family Radio.
As Christians, every financial decision is an opportunity to manage God’s resources faithfully. On this Faith & Finance on AFR, Rob West and Aaron Caid discuss financial discipleship and Christian banking. They also describe how our everyday financial choices can support Kingdom work. Then, it’s on to calls.
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