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The thing God wants for us more than anything else is to reflect his heart. And his heart is one of boundless generosity. We’ll discuss that today on MoneyWise. On our Monday programs, we like to get back to first principles to talk about foundational truths that undergird the other things we discuss on this program. When it comes to money, there are only about five general ways you interact with it: 1. You can earn it 2. Use it to live on 3. Give it away 4. Pay it to someone you owe 5. Or you can invest it so that it can grow to meet future needs. So far this month, we’ve covered earn and live. Today, we want to talk about give. Maybe you’ve heard someone say something like, Why should I give to the church? I need the money more than they do! WHAT GOD REALLY WANTS Christian giving isn’t about something God wants from us. It is about what God wants for us. And what does he want? Ultimately, he wants us to be like him. That’s what Christian discipleship and the work of the Holy Spirit is all about molding and making us, day by day, more like the Lord himself the One whose very nature is to give. God is the great giver. Why did he create the universe? Why did he make the human race? Why did he send Jesus to us? All of these things flow from his boundless generosity and love. And this generous God wants us to be like him. The Apostle Peter says we who have come to Christ have become partakers of the divine nature. There are many implications of that, but among them is that the very generosity of God should flow through us. That includes giving financially to support God’s work in the world. Unfortunately, many Christians think of giving as a burden as something they have to do. No, it is something we get to do. Giving is a privilege. And it helps us, when done with the right attitude, to experience the joy of generosity, and become people who delight, as God does, in giving freely. BEING A WISE STEWARD Being a generous giver is facilitated by being a wise and faithful steward in every area of your finances. If you plan well, spend wisely, and avoid debt, you can more easily grow in generosity. And by growing in generosity, you’ll become more and more Christlike. And that is exactly what God wants for you. 18th-century preacher and theologian John Wesley. I did this a couple of weeks ago as well. One of his famous sermons is called The Use of Money. In it, he says, "Having, first, gained all you can, and secondly saved all you can, then give all you can." There is something implicit in what he is saying and that is wise money management. The only way you can save all you can is by managing your earnings wisely. And that also holds for giving all you can. If you learn to manage money well, you’ll be able to give more. Giving money away will make you a more joyful person. Because as you grow in generosity, you will become more and more like the person God intends you to be. In 2nd Corinthians 9:7, the Apostle Paul writes this: Each of you should give what you have decided in your heart to give, not reluctantly or under compulsion, for God loves a cheerful giver. Giving reluctantly or under compulsion misses the whole point. The God who has given to us so freely to the extent of giving his only begotten Son for us wants us to give freely too. Now, if you find it difficult to give cheerfully, let me urge you to take that to the Lord. Ask him to make your heart like his heart. That might not happen overnight. But if you keep up that prayer, I am confident that God will answer. You’ll become a cheerful giver and be more like him. On today’s program, Rob also answers listener questions: ● Are you taxed on the proceeds from the sale of a home? ● Does it make sense to take money out of a TSA to pay off a mortgage? ● Can you sell your home to an adult child for a predetermined price regardless of the appraised value of the house? RESO

Buying something we really want can be exciting in the moment, but the joy of material possessions has a very short life. Once obtained, the excitement begins to wane. We’ll talk fleeting joy vs lasting fulfillment today on MoneyWise. The Roman statesman Pliny the Younger once said, An object in possession seldom retains the same charm that it had in pursuit. We don’t often quote ancient pagan authors, but we’ll make an exception when they agree with a biblical financial principle. In this case, that possessions have no real lasting value. FLEETING JOY Jesus gives a long discourse on how we should view earthly possessions in Luke 12. In verse 15 he says, Take care, and be on your guard against all covetousness, for one's life does not consist in the abundance of his possessions. And he goes on to say that we shouldn’t worry about what we will eat, or drink, or wear, because the Father already knows of those needs and He will provide. Jesus says, seek His kingdom, and these things will be added to you. Do not be afraid for your Father has chosen gladly to give you the kingdom. And in 1 John 2 we’re told, Do not love the world nor the things in the world. If anyone loves the world, the love of the Father is not in him. Martin Luther certainly knew this when he wrote I have held many things in my hands and I have lost them all. But whatever I have placed in God’s hands that I still possess. Luther was merely restating a profound biblical principle, that earthly possessions are fleeting. We’re not saying you should sell all you have and live a life of poverty. But it’s important to know that possessions always present a problem. THE TYRANNY OF STUFF Things demand attention. You have to store them, clean them, maintain them and fix them, and if you’re not careful you’ll find that acquiring things tends to push God out of first place in your life. God alone wants to meet our needs and give us peace and fulfillment. He wants to spend time with us and use us in his grand plan for the universe. That gets knocked aside if we look for fulfillment in cars, houses, electronics, new clothes and recreational shopping. Physical things can never meet spiritual needs. We can put this principle into practice through planning and action. PLANNING AND ACTION The first action should be prayer. As believers, we must do this daily anyway, but include your finances in your prayer time with the Lord. Do it together with your spouse if you’re married. Seek agreement on how you should manage your money. Planning means having a budget. It’s the only sure way to avoid overspending on things you don’t really need. Part of it should be a plan for what you’ll do with extra money, even if you don’t see it yet. The free MoneyWise app is a great tool for helping you develop your spending plan. Look for MoneyWise biblical finance where you get your apps. And if you need more help, you can also sign up with one of our volunteer coaches at MoneyWise.org. STEPS TO KEEP POSSESSIONS IN CHECK Here are some more practical steps to prevent possessions from taking over your life: - We’ve talked about the 30-day rule before. Wait that long before you buy something you don’t absolutely need. The desire will probably go away. Also, reflect on stuff you bought in the past and consider how long it kept you fulfilled. - If you’re married, make sure your spouse is aware of everything you purchase. That alone may limit your spending on unnecessary things. You and your spouse should agree on spending. Try to find middle ground if you’re at odds over something. - Avoid becoming house poor. Keep your mortgage including principal, interest taxes and insurance at or below 25% of your take home pay. - Only replace things when they no longer function, not when you want a newer, shinier model. Our friend Howard Dayton likes to talk about how he held onto cars until the wheels fell

Some folks will tell you that you can’t get Social Security benefits unless you’ve worked and paid payroll taxes for at least 40 quarters, or 10 years. We’ll explain why today on MoneyWise. There’s no question that Social Security is important maybe TOO important. It was never intended to provide more than 40% of what you’ll need in retirement, but many people rely on it too heavily for their retirement plan by not having enough in savings. That said, it’s especially important to do your research if you haven’t worked the required 10 years. That’s because the Social Security Administration usually won’t inform you that you may be eligible for benefits. So let’s get a jumpstart on that research. HOW DO YOU QUALIFY IF YOU DON’T HAVE NEEDED WORK RECORD? Even if you don’t have the necessary work record, you may still qualify for Social Security benefits. The first way this is possible is through spousal benefits. You may be able to receive benefits based on your spouse's record, or even your former spouse's record in the case of divorce. Typically, you’re eligible for up to 50% of your spouse's benefit if he or she applies for benefits at full retirement age (now 66 or 67). For example, if your spouse is eligible to receive $1,500 a month, your benefit amount could be as much as $750. You’d have to be at least 62 years old and your spouse would have to be receiving benefits already. Now, you can claim your spousal benefits that early, at age 62, but if you do, there’s a cost. If you claim them before your full retirement age, your benefits will be permanently reduced by around 32% unless you're caring for an eligible child under age 16. Bottom line: unless you absolutely can’t live without the money, it’s better to wait for your full retirement age to collect spousal benefits. SOCIAL SECURITY BENEFITS AFTER DIVORCE You could almost say divorce has no impact at all on spousal benefits. If you're divorced, you may still be able to claim benefits based on your ex-spouse's work record. But there are a couple of conditions: The marriage must have lasted at least 10 years and you can’t currently be married. And even if your ex has remarried, you’re still eligible based on his or her record. As would be the case with a current spouse, you have to be at least 62 years old to file for spousal benefits, and your maximum benefit would also be 50% of your ex-spouse's full benefit amount if he or she files at their full retirement age. But unlike with a current spouse, your ex-spouse does not need to have already applied for Social Security benefits for you to receive them based on their record. NOTE: Claiming benefits has no effect on your ex-spouse’s or or their current spouse’s benefits. SOCIAL SECURITY BENEFITS FOR WIDOWS/WIDOWERS Here, we’re getting into survivor benefits. Your eligibility for those depends on the age when your spouse passed away. If he or she worked for at least 10 years and qualified for benefits, then you may be entitled to survivors benefits. As a widow or widower, you only have to be 60, not 62, to file for benefits. You may also qualify if you're age 50 or older and have a disability. And you can file for survivor benefits at any age if you're caring for the deceased worker's child, just as long as the child is under age 16 or disabled. OTHERS WHO MAY QUALIFY Survivor’s benefits aren’t just for widows and widowers. Surviving children, ex-spouses, parents, and sometimes other relatives might also qualify for benefits. In all of those cases, the amount of the benefit depends greatly on how much the worker was eligible to receive and how many people file for benefits. There’s a maximum amount of benefits per family, and that’s based on the deceased’s work record as well. So I know all of this is confusing, and it’s safe to say that what you don’t know about Social Security could cost you benefits that you

You know how Uncle Sam likes to charge you interest when your taxes are late? Well, that works both ways. It’s only fair you pay when you’re late, and the IRS has to pay when they’re late getting your refund check out. We’ll talk about that today on MoneyWise. Refunds this year are still averaging around $3,000, and as we’ve said many times before, that’s way too much. Your refund is really an interest free loan to the government, so you want to keep it as small as possible. Aim for zero. Now, for a variety of reasons, the IRS is more behind than usual getting refund checks out this year. Several factors have led to delays in getting millions of refund checks out to taxpayers. But the good news is! If your check is more than 45 days late, the IRS will pay you interest on the total amount of your check. Right now, interest is accruing at 4%, but starting July 1st, the rate the government will pay you goes up to 5%, compounded daily. But remember, your refund and any interest the IRS pays you, is of course, taxable, so you need to account for that. No free lunch there. Now, when your refund check finally arrives, or if it has already and is still in your bank account, what will you do with it? Unfortunately, many folks who get big refund checks view it as mad money that’s outside the budget, so they can spend it frivolously. But a refund check presents an opportunity, and you should take advantage of it. Here are some ideas of how to do that. HOW TO PUT YOUR REFUND CHECK TO GOOD USE EMERGENCY FUND: If you haven’t started an emergency fund, that’s the first thing to do with your refund check. Or add to it if you have one already. You want 3 to 6 months’ living expenses in liquid savings, and your tax refund can be a great jumpstart. Your emergency fund allows you to handle life’s unplanned but inevitable expenses without having to borrow. By the way, the free MoneyWise App can help you get on a budget and track your expenses, so you can see how much discretionary income you have for saving. PAY DOWN DEBT: It’s the best investment you can make with your refund. It gives you a guaranteed return on your money, equal to the interest rate you’re paying to the credit card company,which is probably a lot. If the refund won’t cover all of your debt, that’s okay. Pay down as much as you can. START SAVING FOR RETIREMENT: Think of it as finally getting your money to work or you instead of you always having to work for your money. Let’s say that back in 2012, you put your 3-thousand dollar refund into a qualified retirement account in an SP 500 Index fund. Today that $3,000 would be almost $12,000. That’s the power of compound earnings. Granted, the stock market did incredibly well over the last 10 years. But historically there’s no better way to create wealth than by investing broadly in the market over a long period of time. FIX UP YOUR HOUSE: If you’ve been putting off a necessary home repair, it’s okay to use refund money for that. Also, home improvements might help increase the value of the property. Keep in mind that not all improvements are worth the money, so you have to do some research. Realtors are always a good source of information. INVEST IN YOURSELF: Use your refund to get more training, take a job-related course, attend a conference or join a professional organization. Those things can pay off down the road with promotions or at least increased job security. BE GENEROUS: Does this extra cash enable you to be more generous? Take the opportunity to give something more to your church or to further God’s Kingdom in other ways. By the way, if you’re married, sometimes when money comes into a household, both spouses might not agree on how to use it. It’s important to reach agreement. Sit down and talk about it, and really listen to your spouse’s point of view. Then, kneel down together and pray about it together. As our friend Howard Dayto

Before you hit the road with your family this summer, be sure your prepared! Today on MoneyWise, we have some tips for the open road. The National Highway Traffic Safety Administration has a great list of things to do before and after heading out this summer. HITTING THE ROAD If you want to be prepared for anything along the highways and byways, start with inspecting and maintaining your vehicle. It’s important to perform routine maintenance and follow your car’s maintenance schedule. That’ll keep your warranty in good standing and help you avoid breakdowns. So inspect your car’s fluid levels, wiper blades, tire pressure, lights and air conditioning. Next, you’ll want to check for any recalls on your vehicle. Dealerships do those repairs for free, but a lot of people still drive cars with safety recalls. Things get busy in the summer, so don’t wait until the last minute to schedule repairs. And if you have kids, their safety is your main concern. Children under 13 should ride in the back seat. Babies from birth to 12-months should sit in a rear-facing seat. From one to three years in, a forward facing seat is appropriate, and a booster seat for kids four to seven years old. It’s also a good habit to check the rear seat every time you leave your vehicle to make sure you haven’t forgotten about a child or pet back there. Sadly, the NHTSA says nearly 40 children die each year due to heatstroke from being forgotten in a car. While we’re on the subject of safety, you’ll want to put together a basic safety kit before hitting the open road where anything can happen. Make sure you bring these items: A cell phone and charger, first aid kit, flashlight, flares, jumper cables, a jack, water and non-perishable food items, washer fluid, and the always useful duct tape, for leaky hoses. Now, it may seem liberating to just head out with a general destination in mind, but since you don’t always know what lies ahead, planning your trip carefully may save you a lot of headaches. Check road conditions, weather, and traffic before you set out. Smart phones have plenty of apps for that, and of course, they come in pretty handy if you have to call for a tow truck. If you’re renting a car, pick it up a few hours early so you can get familiar with it before heading out. Check the manual for safety features. Get acquainted with the dashboard and switches so you don’t have to do that while driving. On some makes, even the location of the trunk and fuel hatch buttons can be a bit of a mystery at first. Okay, that’s your pre-trip checklist. Now that you’re ready to hit the road, try to drive during non-peak hours. Those would be during morning or evening rush hour, Monday through Friday, weekend afternoons and evenings during summer. Instead, leave between rush hours on Friday or early Saturday morning. On the return trip, try to leave after the morning rush on Monday if you can afford the time away. Also, try to avoid night driving. A National Sleep Foundation survey found that over 100 million people have fallen asleep at the wheel at some point. Pull into a rest stop if you feel yourself getting fatigued. Get out and stretch your legs. It’s also good to keep the air conditioning at a cool setting while driving. Warmer temps may make you feel drowsy. If you have older children who are qualified to drive, a road trip can be a good way for them to gain highway experience, so share the driving as long as you remain attentive in the shotgun seat. You also want to share the road. Keep your eyes peeled not just for other cars and trucks, but also motorcycles, bicycles and pedestrians that tend to be out in droves during the warm summer months. Pay attention to the distance you give other vehicles. There used to be a guideline that you should leave one car length separation for every 10 miles of speed, but in recent years analysts have realized you have to give more than that at higher s

Proverbs 21:5 teaches, The plans of the diligent lead surely to abundance, but everyone who is hasty comes only to poverty. And if there’s one place that calls for diligence and not making hasty decisions, it’s your investments. We’ll talk about that today win investment expert Mark Biller. Mark Biller back is executive editor at Sound Mind Investing. Many Americans are nervous that the bears are about to be unleashed on Wall Street. But SMI just published an article that will help you prepare for whatever lies ahead. It’s titled, Lessons From Past Bear Markets: Are you Prepared? Mark Biller says investors really aren’t used to prolonged stock market downturns anymore. The 2018 and 2020 selloffs were as deep as what we’ve experienced this year, but they happened faster and ended much sooner. 2018 was three months long, while 2020 was really just one month from top to bottom, and both were followed by really rapid market rebounds. This year’s downturn is going on six months now and investors haven’t had to deal with many of these longer downturns in the past dozen years. A PERIOD OF ECONOMIC TRANSITION? Biller says we do seem to be at the end of a couple of longer-term cycles. One is the 30-year trend in globalization, which appears to be shifting away from greater global integration toward less globalization of the economy. That’s not all bad. There are some positives that are likely to come out of that eventually. But it’s definitely inflationary in the short-term, which makes it likely that inflation is probably going to be a lot stickier, or more persistent, than we’re used to after decades of falling inflation. The second big issue is that, because the Federal Reserve suddenly has to deal with inflation for the first time in a few decades, it means they can’t be single-mindedly focused on economic growth anymore. That growth focus has been great for investors, because every time the market has slipped in recent years, the Fed would come in and boost growth, which also boosted the financial markets. Now, the Fed is clearly saying that’s over - their focus is on getting inflation down and investors expecting the Fed to come to their rescue again could be in for an unpleasant surprise. WHAT CAN WE LEARN FROM PAST BEAR MARKETS? So what lessons can we learn from past bear markets, assuming we’re entering one now? Biller says the main point of the article is to reinforce the idea that investors need to be diversified and patient, and if they can do that, the long-term trajectory of the markets is higher. The article shows a 50-year log chart of the SP 500 index, which simply means the chart shows the market’s past moves in percentage terms instead of price terms. That chart shows the last seven times prices have declined 20% or more, including this year’s selloff. The point of the chart is that when you zoom out over a longer period, you can barely even see this year’s downturn. You basically see this series of upward bouncing curves going higher over time. So the long-term prospects are still bright for the patient and diversified investor. PREPARING FOR A POTENTIAL LONGER BEAR MARKET If this is a new bear market and its length of decline matches the average of the prior six bear markets, we wouldn’t expect it to end until sometime in mid-2023. That seems like terrible news, right? But there is a silver lining. Because while we do think there are some things an investor can do to prepare for whatever downside may still be ahead of us, there are ways to take advantage of any further decline. You can do that in a couple of ways. The first is to be sure you’re prepared financially. If you haven’t been investing with borrowed money, you can survive any bear market. Just maintain your strategy and wait it out. A BEAR OPPORTUNITY For some investors though, bear markets are more of an opportunity than a threat. Lower stock prices are bad for people

Money isn’t the most important thing in the world, but that doesn’t mean it’s unimportant. In fact, money is of such significance that Jesus mentions it over and over again in his teaching. He knows we need money to live on, and he wants us to manage it wisely and well. More on that today on MoneyWise. On Mondays, we go back to first principles and talk about foundational truths that undergird everything we discuss on this program. Last Monday, we mentioned that there are only five things you can do with money you can earn it, you can use it to live on, you can give some away, you pay it to people you owe, and you can invest it so that it will grow for the future. Those five things are easy to remember: earn, live, give, owe, and grow. Today, we’ll talk about living using money to live on. LIVING ON YOUR INCOME Beyond the basics, food, shelter, clothing and transportation, there are many other things money helps make possible: a good education, quality medical care, financial protection via insurance, and investments to meet our future needs. There are many practical aspects to managing your cost of living, but let’s start with a big picture concept a first principle. And that is this: God knows your needs, and he has committed himself to making a way for you. In Matthew 6, Jesus told us: Do not worry about your life, what you will eat or drink; or about your body, what you will wear. Is not life more than food, and the body more than clothes? Look at the birds of the air; they do not sow or reap or store away in barns, and yet your heavenly Father feeds them And why do you worry about clothes? See how the flowers of the field grow. They do not labor or spin. Yet I tell you that not even Solomon in all his splendor was dressed like one of these So do not worry, saying, What shall we eat?’ or What shall we drink?’ or What shall we wear?’ For the pagans run after all these things, and your heavenly Father knows that you need them. But seek first his kingdom and his righteousness, and all these things will be given to you as well. The writer to the Hebrews reinforces this is in Hebrews 13, when he writes: Keep your life free from love of money, and be content with what you have, for [God] has said, I will never leave you nor forsake you.’ So we can confidently say, The Lord is my helper; I will not fear’ Scripture is not telling us that we can financially irresponsible and God will cover for us. But it is saying that we can trust Him to meet our genuine needs. Here’s one more relevant verse: It’s 1st Chronicles 16:9. In context, a prophet named Hanani is scolding one of Israel’s kings for not trusting God, and he makes this striking statement: For the eyes of the Lord range throughout the earth to strengthen those whose hearts are fully committed to him. So again, God knows your cost of living needs, and if you are fully committed to him, he will make a way. Again, there are lots of practical aspects to managing your cost of living, and the Lord expects us to manage to the best of our ability and wisdom. That would include making a spending plan and tracking spending so that you have clear knowledge of where your money is going. Our MoneyWise App can help you with that. GOD KNOWS YOUR NEEDS. BUT DO YOU? Do you really have a good handle on what you need to live and support your family? That is, not all the stuff you may want, but what you really need? A spending plan can help you figure that out. And here is perhaps the most practical thing to keep in mind: Don’t spend more than you earn. Actually, it’s crucial to live on less than you earn so that you can set aside some money for the future. The thing to remember with managing money is that just like with an exercise program the effect is cumulative. If you develop a plan and stick to it, the cumulative effects will eventually appear. You’ll notice you feel more confident about your finances bec

Americans are starting to break out the plastic again, and that means consumer debt is once again on the rise. Today on MoneyWise, Neile Simon with Credit Counselor with Christian Credit Counselors joins us to discuss how you can get help with getting out of credit card debt. Neile Simon is is a Certified Credit Counselor with Christian Credit Counselors. Simon shares the latest figures on U.S. personal debt. SURGING PERSONAL DEBT In one month alone debt levels jumped by over $40 billion to a total of nearly $4.5 trillion. That's an annual increase of 11.3%, far higher than was predicted and setting a new high. There are two types of consumer debt: Non-revolving debt, which includes things like car and student loans. That debt grew by about 8.5% to nearly $3.5 trillion in February alone! But revolving debt shot up far higher. Credit cards and other types of revolving loans jumped by over 20% to more than $1 trillion in a single month! This is a fast-rising trend. The January increase was only about 4% WHAT’S CAUSING THIS? Analysts believe inflation, now at a 40-year high, is a major culprit. Prices for almost everything have shot up, putting a strain on budgets. Prices at the pump are especially painful right now. WHAT’S THE SOLUTION? Most people will have to tweak their budgets to adapt to the new reality of rising prices. Some categories will need to be cut to account for higher costs in other categories. The important thing is to stay on a spending plan and find a way to spend less than you earn. PLEASE do not think of credit cards as a solution to an income shortfall. That will only make the problem worse. But what if you’re already buried under substantial credit card debt. What’s the solution? IS DEBT SETTLEMENT THE ANSWER? We’re getting more calls these days about debt settlement. But Simon says debt settlement (which is different from credit counseling) is not the solution either. Debt settlement may lower your monthly payment, but it often leads to paying more interest overall. It also puts you at risk of continuing to use consumer debt to make ends meet, ultimately digging an even deeper hole. CHRISTIAN CREDIT COUNSELING Christian Credit Counselors doesn’t do debt settlement. When people sign up with Christian Credit Counselors, they will work with their creditors to dramatically lower interest rates and arrive at one affordable monthly payment. CCC has existing arrangements with all major credit card issuers to lower your interest rates. Clients ultimately pay less interest and are typically able to pay off card debt up to 80% faster than by doing it themselves. For more information, visit their website at ChristianCreditCounselors.org or call 800-557-1985. On today’s program, Rob also answers listener questions: ● How much actual cash should you keep on hand? ● Does it make sense to take money out of retirement investments to pay for moving costs when going into full-time ministry? ● Can you move 401k funds into an I-bond? Remember, you can call in to ask your questions most days at (800) 525-7000 or email them to [email protected]. Also, visit our website at MoneyWise.org where you can connect with a MoneyWise Coach, join the MoneyWise Community, and even download the free MoneyWise app. To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29

Many investors want to apply their faith to the way they invest their money. And a small, but growing industry of faith-based investments is seeking to meet that desire. But many still have questions. Matt Rusten joins us to help answer those questions today on MoneyWise. Matt Rusten is executive director of Made to Flourish, a ministry dedicated to helping Christians live their faith seven days a week, not just on Sunday. Matt writes for the Eventide Center and recently penned an article titled Why I Was Skeptical of Faith-Based Investing and What Changed My Mind. Matt share his journal now an advocate for faith-based investing. His first real concern: Matt believed faith-based investing funds were fiscally irresponsible, and therefore, represented unwise stewardship. He said his analysis of the numbers led him to a clear verdict: smart money commits to low-fee index funds, while stupid money chases returns in actively managed, high-fee funds. Faith-based funds, values-based funds, socially responsible funds they all seemed simply like the latest gimmick by which actively managed funds continued to underperform. But Matt said that was only true on the basis of my second concern: He believed faith-based funds were shrewdly packaged products designed to make money from those with a weak conscience. This is a reference Romans 14, which described Christians with a weak conscience, whose moral alarms were always going off like a malfunctioning alarm clock. To the issues of stewardship and conscience, he added a third critique, this time with a theological lens: He believed faith-based funds were overly optimistic about their moral purity, and weren’t sufficiently realistic about the moral ambiguity of our world. Afte the Fall, he reasoned, life and work in this world is always tainted by sin. In the prophet Jeremiah’s words, the heart is deceitful above all things. Since sin is pervasive, it crops up in unexpected ways and places. The implication for investing seemed simple: it is naive to think we can invest only in companies that align with God’s creational purposes. The world especially the world of business/investing is far too messy. Even companies with the best of intentions can cause untold harm, which is not always evident until many years later. The solution, he thought, was not to embrace a highly developed boycott mentality, but to recognize that we are not polluted by participation in an imperfect world. After all, Jesus told his disciples to pay their taxes to an evil government, and Paul ate meat sacrificed to idols, arguably aiding the idolatry industry. Such is life in a fallen world. WHAT CHANGED HIS VIEWS Over time, Matt said his views bagan to shift. Regarding underperformance and high fees, he began to see that ethically-run companies who create compelling value for people and planet tend to perform very well over the long term. Their business models are intrinsically sustainable making them less susceptible to the unpleasant surprises that can plague unsuspecting investors. Secondly, on the issue of faith-based or values-based funds being packaged for those with weak consciences, he came to see that investing is ownership. For two reasons, this magnifies our moral responsibility: Owning shares in a company helps the company succeed. And, more importantly, shareholders are directly profiting from the company’s business activities. Effectively, a shareholder becomes a partner in its business model. His tangible first step was to ask what companies he actually owned through his investments, and whether he was happy benefiting from them financially. Thirdly, his thinking about the moral ambiguity of companies changed. He realized that some companies practice business in ways that align with God’s Love your neighbor’ command while others do the opposite. Some companies purposely create value for their various stakeholder neighbors customers, emplo

Before making the biggest financial decision of your life, it’s a good idea to get all the facts. What’s that decision? For most people it’ll be whether to buy a house. Today on MoneyWise, we’ll discuss the facts you need to know to make the right decision. After the housing crash of 2008, when we saw home values plummet and stay low for several years, many experts advised people to not look at their home as an investment, but simply as a place to live. That perhaps gave comfort to some, but it certainly didn’t help anyone who needed to sell their home, whether due to a job transfer or the inability to make the payments. They were stuck. So while it’s easy to say that a home isn’t an investment, it sure has a lot of the same characteristics. You’re putting money into it like an investment. And in the case of a home purchase, a LOT of money. Also, like an investment, you never want to see the market value of your home decline, because if you have to sell, you’ll be taking a loss. TO BUY OR NOT TO BUY Of course, the housing market today is red hot, even though it’s beginning to show signs of moderation. Would be home buyers are still faced with a tough decision: to buy or not to buy and just keep renting. The Wall Street Journal did an analysis of the current market to answer that question, and the most obvious finding was that anyone buying a home today will have to wait a good deal longer for the investment to pay off. That means buying a home today is not just more expensive, it’s also more dangerous because the time needed to break even is significantly extended. To determine the length of time for breaking even, the analysis compared the cost of buying a home to the cost of renting a similar home. Both of those numbers have shot up since the pandemic hit. Rents across the country have risen sharply, but the price of homes has gone up even more. The cost of renting a single-family home went up over 13% in February compared to last year, but home prices increased 20% in March over a year ago. So, in the Wall Street Journal analysis, the break even point is where the cost of owning a home matched the cost of renting the home over the same period. It found that in Austin, Texas, an extremely hot market, you’d need to stay in the home 5.6 years before reaching break even. That’s assuming a 10% down payment with a 30-year, fixed-rate mortgage at 5%. That’s a huge jump over the 3.7 years it took before the pandemic. And again, those break even times are based on a comparison to the cost of renting a similar home in the same market. Of course, the results vary by market. In Miami, the cost of renting has outstripped the rise in home prices, so the time needed to break even actually decreased a bit to 2.3 years. Well, the upshot of all this is that if you buy a home now and have to sell, you’ll be in for a big loss. Let’s go back to that home in Austin, Texas with the 5.6-year span of time needed to break even. The analysis showed that if you sell the property after 3 years, you’ll lose $30,000 over what you’d have paid to rent over the same period. Why is that the case? Because of all the added costs of home ownership like closing costs, private mortgage insurance, property taxes and maintenance. Those expenses would be greater than the estimated appreciation on the home’s value. Now, I’m not saying you shouldn’t buy a home in today’s market. But you should know what you’re up against. Two things will help make sure you don’t lose money. First, don’t buy unless you have 20% of the home value saved up for a down payment. That eliminates private mortgage insurance. Second, don’t buy unless you are reasonably sure you’ll be in the home 5 years from now. Those two factors should give you enough equity to at least break even if you have to sell. On today’s program, Rob also answers listener questions: ● How can you set up a

Christians are called to go into the world but not become part of it. That’s always a challenge, especially with investing. We’ll talk about faith-based investing today with Chris Meyer. Chris Meyer is Manager of Stewardship Investing Advocacy and Research with Praxis Mutual Funds. Praxis is a faith-based family of mutual funds that has been around for over 26 years and prides itself on delivering real-world impact in support of Kingdom values. When many people think of integrating their values with their investments, their focus is usually screening out companies that don’t share our values. However, the Praxis approach clearly goes beyond screening. Meyer explains that Paxis believes screening is important, as a clear expression of the values Christians hold. But he says there are also other strategies beyond weeding certain companies out of your portfolio that can make a difference. One of those strategies is shareholder advocacy. The means engaging company to promote positive change. That could mean letter writing, filing sharehold resolutions, and dialogue with company management. Meyer says in most of Praxis’ corporate engagement, they collaborate with other faith-based investors and organizations. Praxis is a member of the Interfaith Center on Corporate Responsibility, a member-based organization dedicated to shareholder advocacy. Meyer says that collaboration helps to multiply their impact. Praxis has been a part of engagement companies are a range of important issues including human trafficking, economic inequality, and creation care. For more information about the efforts of Praxis and its investment services, visit PraxisMutualFunds.com. On today’s program, Rob also answers listener questions: ● What are I-bonds and are they a good investment? ● Is the The Monte Carlo retirement prediction method accurate, and is it a good way to plan for retirement? Remember, you can call in to ask your questions most days at (800) 525-7000 or email them to [email protected]. Also, visit our website at MoneyWise.org where you can connect with a MoneyWise Coach, join the MoneyWise Community, and even download the free MoneyWise app. To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29

Cryptocurrency is defined as a digital currency or decentralized system of exchange that uses advanced cryptography for security. That’s the formal definition, but does it really explain what this mysterious entity is all about and why so many are infatuated with it? We’ll talk about that today with Jerry Bowyer. Jerry Bowyer is an economist and MoneyWise contributor. Bowyer explains that the idea of crypto is that it’s encrypted. The person who has the key, which is a number, has control of it. They can spend it or give it away, but no one else can access it without they key number. The main proposition of cryptocurrency is that, unlike paper currencies, it’s not infinitely inflatable. A country can print an unlimited amount of currency. In contrast, with Bitcoin, for instance, there is built into its algorithm a rule that it can never print more than 21 million Bitcoins. So it can serve as a hedge against debasement of currency. CRYPTO AS AN INVESTMENT However, Bowyer says the data does not indicate that cryptocurrency is an effective hedge against inflation. And there are many concerns with cryptocurrency as an investment class. First, most people don’t understand it, and you should never invest in something you don’t understand. Beyond that, cryptocurrencies are very risky investments. That doesn’t mean that Christians should never invest in them. But it’s important to understand the risk involved and to not invest more into cryptocurrencies than you can afford to lose. With crypto, there is at least slight risk of falling victim to hackers. Hackers have made off with billions of dollars in virtual assets in the past year by compromising some of the cryptocurrency exchanges that have emerged during the bitcoin boom. There have been more than 20 hacks in 2021 with thieves stealing at least $10 million in digital currencies CRYPTO VOLATILITY Crypto is also risky because of its wild volatility. When people talk about cryptocurrency, they usually mean Bitcoin. It’s the 500-pound gorilla. How has Bitcoin performed over the past year? Bitcoin started 2022 nearly twice as valuable as it was in January 2021. But before January ended, it had nearly lost all of the previous year’s gains. It’s now selling at around $30,000. So far, a lackluster performance in 2022. But Bitcoin is far from the only cryptocurrency. There were over 18,000 cryptocurrencies in existence as of March 2022. According to Bankrate, the three most popular are: 1. Bitcoin (BTC) Price: $29,155. Market cap: $557 billion. ... 2. Ethereum (ETH) Price: $1,797. ... 3. Tether (USDT) Price: $1.00. CRYPTO PRIVACY Some see cryptocurrencies as a godsend for many concerned about the loss of privacy. But is that really the case? Bowyer says not really. Bitcoin, the original cryptocurrency, was designed to enable transactions using only digital identities and without the intervention of a trusted third party, like a bank. Bitcoin’s introduction in early 2009, when the global financial crisis had decimated trust in governments and banks, was perfectly timed with a growing aversion to these big institutions. But it turns out that cryptocurrencies, in fact, do not guarantee anonymity. Users’ digital identities can, with some effort, be connected to their real identities. And in an ultimate irony, the revolution that bitcoin started could end up destroying whatever privacy is left in financial markets. Iit threatens to give big corporations and government a better view into our financial lives and greater control over how we spend our money. In summary, don’t invest in cryptocurrency if you don’t understand it. And if you do, devote only a small portion of your investment portfolio to this incredibly risky investment class. You can read Jerry Bowyer’s informative articles at TownHall.com. On today’s program, Rob also answers listener questions: ● How should you go