Are you one of those right-brained peoplemore creative than logical? Are you not good with numbers so you don’t like budgets? Well, how about a spending plan with just three numbers 50, 30, and 20? It might just be the easiest budget in the world with three simple categories. Follow it and you can say good-bye to living paycheck to paycheck! Today, Kingdom Advisors Rob West walks you through this simple spending plan.

The 50/30/20 Budget is a simple, beginner’s budget. It’s not unlike the simple Jars System you might teach small children about managing money. But just because it’s easy doesn’t mean it’s not effective. If you follow the 50/30/20 budgeting rule you’ll definitely get your finances on track.

This budget is simply the percentages of your after-tax income you put into the three categories of the spending plan: needs, wants, and savings (or debt repayment).

So how exactly do you determine your after tax income? You have to add back in everything that isn’t income or payroll taxes which are Social Security and Medicare deductions. That gives you the number you have to work with for your three categories.

What goes into our three categories? (1) Needs are things you absolutely must pay each month. This include rent or mortgage, car payments, groceries, gasoline, utilities, and health insurance. (2) Your wants category include what you’d like to have but aren’t essential for living: eating out, cable, gym memberships, subscriptions, and vacations. (3) Finally, you have 20% left over for your emergency fund and retirement investments and/or paying down debt.

If you don’t already have 3 to 6 months’ living expenses in an emergency fund, you should split that last 20% with half going into short-term savings and the rest applied as extra on your debt. And of course, once your debt’s paid off, you can put the whole 20% into savings.

On today’s program we also answer your questions:

Is it wise to use an FHA loan (here in South Florida) or wait until the 20% down-payment is there?

What can you recommend to a Christian for a sharing ministry healthcare product?

My husband is 72. He’s retired, so he gets social security and 100% disability from the VA.We have a 401(k) in his name from when he left his jobit’s a little less than $100,000. Somebody is advising him that he needs to turn that into an annuity. Should we pursue this?

Ask your questions at (800) 525-7000 or email them [email protected]. Visit our website atmoneywise.orgwhere you can connect with a MoneyWise Coach, purchase books, and even download free, helpful resources.

Like and Follow us on Facebook at MoneyWise Media for videos and the very latest discussion!Remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking the Donate tab at the top of the page.

To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29

To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29

Are you one of those right-brained peoplemore creative than logical? Are you not good with numbers so you dont like budgets? Well, how about a spending plan with just three numbers 50, 30, and 20? It might just be the easiest budget in the world with three simple categories. Follow it and you can say good-bye to living paycheck to paycheck! Today, Kingdom Advisors Rob West walks you through this simple spending plan.

The 50/30/20 Budget is a simple, beginners budget. Its not unlike the simple Jars System you might teach small children about managing money. But just because its easy doesnt mean its not effective. If you follow the 50/30/20 budgeting rule youll definitely get your finances on track.

This budget is simply the percentages of your after-tax income you put into the three categories of the spending plan: needs, wants, and savings (or debt repayment).

So how exactly do you determine your after tax income? You have to add back in everything that isnt income or payroll taxes which are Social Security and Medicare deductions. That gives you the number you have to work with for your three categories.

What goes into our three categories? (1) Needs are things you absolutely must pay each month. This include rent or mortgage, car payments, groceries, gasoline, utilities, and health insurance. (2) Your wants category include what youd like to have but arent essential for living: eating out, cable, gym memberships, subscriptions, and vacations. (3) Finally, you have 20% left over for your emergency fund and retirement investments and/or paying down debt.

If you dont already have 3 to 6 months living expenses in an emergency fund, you should split that last 20% with half going into short-term savings and the rest applied as extra on your debt. And of course, once your debts paid off, you can put the whole 20% into savings.

On todays program we also answer your questions:

Is it wise to use an FHA loan (here in South Florida) or wait until the 20% down-payment is there?

What can you recommend to a Christian for a sharing ministry healthcare product?

My husband is 72. Hes retired, so he gets social security and 100% disability from the VA.We have a 401(k) in his name from when he left his jobits a little less than $100,000. Somebody is advising him that he needs to turn that into an annuity. Should we pursue this?

Ask your questions at (800) 525-7000 or email them [email protected]. Visit our website atmoneywise.orgwhere you can connect with a MoneyWise Coach, purchase books, and even download free, helpful resources.

Like and Follow us on Facebook at MoneyWise Media for videos and the very latest discussion!Remember that its your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking the Donate tab at the top of the page.

A single Bible verse may contain the most valuable piece of investing advice ever given. Ecclesiastes 11:2 says, Give a portion to seven, or even to eight, for you know not what disaster may happen on earth.That’s the principle of diversification and we feel you should always invest that way.But is there an exception to the rule? Rob West and Steve Moore talk about it.

And no, there is no except even though a lot of people think there is.So what stock could have that much hold over people?It’s their employer’s stock. Companies make it really easy for their workers to buy it. Plus, it probably feels good to invest where you work.

Unfortunately, 20 years ago, accounting scandals at WorldCom and Enron resulted in the collapse of their stock. Their employees lost billions in retirement savings.

It happened again in 2008 at Lehman Brothers and again in 2015 at Radio Shack. Fortunatley, those horror stories have gotten people’s attention.

Today, Vanguardreportsthat only 10% of all investors in their defined contribution plans own any company stock at all. The bad news is that half of those, or about 5% of Vanguard’s investors, still have more than 20% of their portfolios in company stocks. That’s exposing them to too much risk if something happens to their company.

It’s not a problem to invest where you work, but it’s theamountof ownership that’s the problem. Consider this: you’re already heavily invested in your company even if you don’t own a single share of its stock.If something happens to the company, your paycheck and benefits could be lost. Do you really want to put a big piece of your retirement savings at risk as well?

Many people feel it must be safe to invest in company stock because they see the top executives doing it. Remember, though, those execs could also be investing much more outside the company so they could absorb a hit on company stock values more easily.Secondly,researchshows that top executives routinely unload their stock incentives over time. In fact, they tend to sell company stock at twice the rate they buy it.

So the bottom line is there’s never an exception to the diversification rule just like there’s never an exception to the wisdom of God’s Word.

Next, Rob and Steve answer listener questions at 800-525-7000 or by email at [email protected] including the following:

Earlier this year at the start of the COVID-19 crisis, a caller moved a third of his investments over to bonds under the recommendation of a financial advisor.However, they’ve lost value and don’t seem to be coming back.Did he make a mistake?Should he re-allocate?

Self-employed husband has had no work this year due to a work-related accident and, therefore, has had very little income.They’re wondering if they should take distribution from one of their investment accounts and, perhaps, in the process, reinvest those withdrawals into a Roth IRA.

Caller put some money into a Roth IRA through his insurance company.He’s wondering if the company Black Rock is any good.(Rob doesn’t endorse any particular financial companies, but was able to give the caller some basic information about the company, then help him decide if it might be a good fit for his investments.Rob also mentioned the webiste InspireInsight.com to help the caller screen his investments to see how company profits are being used.)

Caller is considering transfering some money in an IRA to an annuity and wants to know why Rob is not a fan or annuities.(The short answer is that Rob does not usually recommend annuities because they tend to be both complex and expensive and he feels your money can do better elsewhere.He also says it’s not a one-size-fits-all answer.)

MoneyWise is listener supported and we need your help to keep God’s financial principles on the air. Between now and December 31, 2020, a generous donor has committed to matching any contribution you make to the program. So please prayerfully consider making a gift today. Just click the donate button at MoneyWise.org. You’ll feel twice as glad you did.And for your gift of $25 or more during December 2020, we’re pleased to send you a free copy of Andy Stanley’s book,Better Decisions, Fewer Regrets.

Thanks for your prayerful and financial support, and thanks for listening!

To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29

To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29

A single Bible verse may contain the most valuable piece of investing advice ever given. Ecclesiastes 11:2 says, Give a portion to seven, or even to eight, for you know not what disaster may happen on earth.Thats the principle of diversification and we feel you should always invest that way.But is there an exception to the rule? Rob West and Steve Moore talk about it.

And no, there is no except even though a lot of people think there is.So what stock could have that much hold over people?Its their employers stock. Companies make it really easy for their workers to buy it. Plus, it probably feels good to invest where you work.

Unfortunately, 20 years ago, accounting scandals at WorldCom and Enron resulted in the collapse of their stock. Their employees lost billions in retirement savings.

It happened again in 2008 at Lehman Brothers and again in 2015 at Radio Shack. Fortunatley, those horror stories have gotten peoples attention.

Today, Vanguardreportsthat only 10% of all investors in their defined contribution plans own any company stock at all. The bad news is that half of those, or about 5% of Vanguards investors, still have more than 20% of their portfolios in company stocks. Thats exposing them to too much risk if something happens to their company.

Its not a problem to invest where you work, but its theamountof ownership thats the problem. Consider this: youre already heavily invested in your company even if you dont own a single share of its stock.If something happens to the company, your paycheck and benefits could be lost. Do you really want to put a big piece of your retirement savings at risk as well?

Many people feel it must be safe to invest in company stock because they see the top executives doing it. Remember, though, those execs could also be investing much more outside the company so they could absorb a hit on company stock values more easily.Secondly,researchshows that top executives routinely unload their stock incentives over time. In fact, they tend to sell company stock at twice the rate they buy it.

So the bottom line is theres never an exception to the diversification rule just like theres never an exception to the wisdom of Gods Word.

Next, Rob and Steve answer listener questions at 800-525-7000 or by email at [email protected] including the following:

Earlier this year at the start of the COVID-19 crisis, a caller moved a third of his investments over to bonds under the recommendation of a financial advisor.However, theyve lost value and dont seem to be coming back.Did he make a mistake?Should he re-allocate?

Self-employed husband has had no work this year due to a work-related accident and, therefore, has had very little income.Theyre wondering if they should take distribution from one of their investment accounts and, perhaps, in the process, reinvest those withdrawals into a Roth IRA.

Caller put some money into a Roth IRA through his insurance company.Hes wondering if the company Black Rock is any good.(Rob doesnt endorse any particular financial companies, but was able to give the caller some basic information about the company, then help him decide if it might be a good fit for his investments.Rob also mentioned the webiste InspireInsight.com to help the caller screen his investments to see how company profits are being used.)

Caller is considering transfering some money in an IRA to an annuity and wants to know why Rob is not a fan or annuities.(The short answer is that Rob does not usually recommend annuities because they tend to be both complex and expensive and he feels your money can do better elsewhere.He also says its not a one-size-fits-all answer.)

MoneyWise is listener supported and we need your help to keep Gods financial principles on the air. Between now and December 31, 2020, a generous donor has committed to matching any contribution you make to the program. So please prayerfully consider making a gift today. Just click the donate button at MoneyWise.org. Youll feel twice as glad you did.And for your gift of $25 or more during December 2020, were pleased to send you a free copy of Andy Stanleys book,Better Decisions, Fewer Regrets.

Thanks for your prayerful and financial support, and thanks for listening!

It won’t take much for the new year to be an improvement, especially if you plan now to fine tune your finances. Rob West and Steve Moore sit down with investing expert Mark Biller to find out how.Mark is the executive editor at Sound Mind Investing (SoundMindInvesting.org)

The folks at Sound Mind Investing have compiled an exhaustive list of important financial moves to make in 2021.Our starting point as followers of Christ is that we look beyond the here and now and maintain an eternal perspective. We should always be looking to Jesus, the author and finisher of our faith.

The point of SMI’sTop 10article is to give listeners a chance to go through a list of roughly 60 helpful financial moves they can make in the year ahead regardless of where they are on their financial journey.

This article, with the full list of potential action items, is available to MoneyWise listeners at SoundMindInvesting.org.

Here are some examples of steps you might take.

Create a spending plan if you don’t have one already, or bring your existing plan up to date.

Get the right tools.Investigate online platforms that can help you develop and implement a budget (Rob recommends the new MoneyWise app which is based on the envelope system.)

Develop a plan for getting out of debt.

Set a target dollar amount for your emergency savings and save toward it.

Develop and write down your investing plan.

Choose an appropriate asset allocation.

Open an IRA and begin saving in it this year.If a retirement plan is available at work, take advantage of that.

Train yourself to take market turbulence in stride.

Stop watching financial TV!

Diversify, diversify, diversify

Get educated about bonds.

Consider investing in commodities. Taking a little bit of money from your stock-based investments and redeploying it into commodities is a simple way to add a little bit more inflation protection. SMI has a full article on that idea available as well.

Rob and Mark then talk about financial decisions specifically geared toward retirement, such as Medicare choices, long-term care and newer short-term-care insurance options, which SMI wrote an article about last month.

Lastly, they talked about the idea of setting your house in order, meaning equipping your spouse or other loved ones to handle financial decisions, including investment decisions, after you’re gone.

The Top 10 list article at SoundMindInvesting.org contains a link to more information about a special software tool they’ve developed which is used often by financial professionals when guiding clients through the decisions needed in retirement and estate planning.If you’re interested, you’ll find more about the Top 10 article and all the articles mentioned today at SoundMindInvesting.org.

Next, Rob and Steve answer listener questions at 800-525-7000 or by email at [email protected] including the following:

A caller shares a testimony about tithing and about how her parents taught her Biblical finance years ago.

Caller’s ID has been compromised.She called to find out who to contact and what to do to try to secure her ID and mitigate any damage.(Rob mentioned the websitewww.identitytheft.govand also suggested contacting Equifax, Experion and TransUnion.The quickest and easiest way to do so is online, but you can call as well.)

A caller is interested in an Indexed Universal Life policy as a possible investment vehicle for retirement savings.Rob weighs in by explaining the pros and cons of this type of policy.

You can ask your own questions at (800) 525-7000 or email them [email protected]. Visit our website atMoneyWise.orgwhere you can connect with a MoneyWise Coach, purchase books, and even download free, helpful resources like the MoneyWise app.

Like and Follow us on Facebook atMoneyWise Mediafor videos and the very latest discussion!Remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking the Donate tab at the top of the page.

To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29

To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29

It wont take much for the new year to be an improvement, especially if you plan now to fine tune your finances. Rob West and Steve Moore sit down with investing expert Mark Biller to find out how.Mark is the executive editor at Sound Mind Investing (SoundMindInvesting.org)

The folks at Sound Mind Investing have compiled an exhaustive list of important financial moves to make in 2021.Our starting point as followers of Christ is that we look beyond the here and now and maintain an eternal perspective. We should always be looking to Jesus, the author and finisher of our faith.

The point of SMIsTop 10article is to give listeners a chance to go through a list of roughly 60 helpful financial moves they can make in the year ahead regardless of where they are on their financial journey.

This article, with the full list of potential action items, is available to MoneyWise listeners at SoundMindInvesting.org.

Here are some examples of steps you might take.

Create a spending plan if you dont have one already, or bring your existing plan up to date.

Get the right tools.Investigate online platforms that can help you develop and implement a budget (Rob recommends the new MoneyWise app which is based on the envelope system.)

Develop a plan for getting out of debt.

Set a target dollar amount for your emergency savings and save toward it.

Develop and write down your investing plan.

Choose an appropriate asset allocation.

Open an IRA and begin saving in it this year.If a retirement plan is available at work, take advantage of that.

Train yourself to take market turbulence in stride.

Stop watching financial TV!

Diversify, diversify, diversify

Get educated about bonds.

Consider investing in commodities. Taking a little bit of money from your stock-based investments and redeploying it into commodities is a simple way to add a little bit more inflation protection. SMI has a full article on that idea available as well.

Rob and Mark then talk about financial decisions specifically geared toward retirement, such as Medicare choices, long-term care and newer short-term-care insurance options, which SMI wrote an article about last month.

Lastly, they talked about the idea of setting your house in order, meaning equipping your spouse or other loved ones to handle financial decisions, including investment decisions, after youre gone.

The Top 10 list article at SoundMindInvesting.org contains a link to more information about a special software tool theyve developed which is used often by financial professionals when guiding clients through the decisions needed in retirement and estate planning.If youre interested, youll find more about the Top 10 article and all the articles mentioned today at SoundMindInvesting.org.

Next, Rob and Steve answer listener questions at 800-525-7000 or by email at [email protected] including the following:

A caller shares a testimony about tithing and about how her parents taught her Biblical finance years ago.

Callers ID has been compromised.She called to find out who to contact and what to do to try to secure her ID and mitigate any damage.(Rob mentioned the websitewww.identitytheft.govand also suggested contacting Equifax, Experion and TransUnion.The quickest and easiest way to do so is online, but you can call as well.)

A caller is interested in an Indexed Universal Life policy as a possible investment vehicle for retirement savings.Rob weighs in by explaining the pros and cons of this type of policy.

You can ask your own questions at (800) 525-7000 or email them [email protected]. Visit our website atMoneyWise.orgwhere you can connect with a MoneyWise Coach, purchase books, and even download free, helpful resources like the MoneyWise app.

Like and Follow us on Facebook atMoneyWise Mediafor videos and the very latest discussion!Remember that its your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking the Donate tab at the top of the page.

In Matthew 4, Jesus warns,Man shall not live by bread alone, but by every word that comes from the mouth of God. Put another way, the trappings of the world lead only to hunger.We can never fill the god-shaped hole in our soul with money and possessions. Today, host Rob West talks with Compass founder Howard Dayton about a way of living that truly satisfies spiritual hunger. Then it’s your calls at 800-525-7000. Howard Dayton is the author ofYour Money Counts: Now More Than Ever, and today we’re focusing on just one chapter about choosing a lifestyle that pleases God.

Our culture, the media and advertisers try to influence us to focus on today with no thought of eternity.

Our time on earth is so brief when compared with eternity. But we have the opportunity to influence eternity by how we handle money today. We can spend money to influence people for Christ and lay up treasures for ourselves in heaven. Having eternal perspective will have a profound effect on our decision making.

Hebrews tells us,"By faith Moses, when he had grown up, refused to be called the son of Pharaoh's daughter, choosing rather to endure ill-treatment with the people of God than to enjoy the passing pleasures of sin, considering the reproach of Christ greater riches than the treasures of Egypt; for he was looking to the reward."

We face a similar decision. We can either live with a view toward eternity or live focused on this present world.

Philippians 3 tells us we’re citizens of heaven, not earth. And Hebrews 11 defines us as aliens, strangers, and pilgrims on this earth.

We should make an effort to live more simply. Every possession requires time, attention, and often money to maintain it. Too many or the wrong types of possessions can demand too much time, energy, or money.

In 1 Thessalonians 4, Paul tells,"Make it your ambition to lead a quiet life and attend to your own business, so that you may behave properly toward outsiders and not be in any need."

Advertisers and the media spend billions of dollars to get our focus off Christ and on to our stuff. We’re in the midst of fighting the most important war in history with eternal consequences for people all around us.

Prayerfully submit spending decisions to the Lord - 1 Timothy 4 says, "For everything created by God is good, and nothing is to be rejected, if it is received with gratitude."

Romans 12 says, Do not conform to the pattern of this world, but be transformed by the renewing of your mind. Then you will be able to test and approve what God’s will ishis good, pleasing and perfect will.

Here are a couple of questions we answered from our callers on today’s program:

I am refinancing my home with a cash out. I have about 21K in credit card debt. I wanted to pay off half of it and use the rest to make improvements on my home. What do you think?

I had 350K in credit card debt 10 years ago. I am now down to about 40K. I lost my job in May and I have been utilizing different deals to pay the minimum, but I am running out of ideas. Do you have any advice for me?

Ask your questions at (800) 525-7000 or email them [email protected]. Visit our website atMoneyWise.orgwhere you can connect with a MoneyWise Coach, purchase books, and even download free, helpful resources like the MoneyWise app.

Like and Follow us on Facebook atMoneyWise Mediafor videos and the very latest discussion!Remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking the Donate tab at the top of the page.

To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29

To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29

In Matthew 4, Jesus warns,Man shall not live by bread alone, but by every word that comes from the mouth of God. Put another way, the trappings of the world lead only to hunger.We can never fill the god-shaped hole in our soul with money and possessions. Today, host Rob West talks with Compass founder Howard Dayton about a way of living that truly satisfies spiritual hunger. Then its your calls at 800-525-7000. Howard Dayton is the author ofYour Money Counts: Now More Than Ever, and today were focusing on just one chapter about choosing a lifestyle that pleases God.

Our culture, the media and advertisers try to influence us to focus on today with no thought of eternity.

Our time on earth is so brief when compared with eternity. But we have the opportunity to influence eternity by how we handle money today. We can spend money to influence people for Christ and lay up treasures for ourselves in heaven. Having eternal perspective will have a profound effect on our decision making.

Hebrews tells us,"By faith Moses, when he had grown up, refused to be called the son of Pharaoh's daughter, choosing rather to endure ill-treatment with the people of God than to enjoy the passing pleasures of sin, considering the reproach of Christ greater riches than the treasures of Egypt; for he was looking to the reward."

We face a similar decision. We can either live with a view toward eternity or live focused on this present world.

Philippians 3 tells us were citizens of heaven, not earth. And Hebrews 11 defines us as aliens, strangers, and pilgrims on this earth.

We should make an effort to live more simply. Every possession requires time, attention, and often money to maintain it. Too many or the wrong types of possessions can demand too much time, energy, or money.

In 1 Thessalonians 4, Paul tells,"Make it your ambition to lead a quiet life and attend to your own business, so that you may behave properly toward outsiders and not be in any need."

Advertisers and the media spend billions of dollars to get our focus off Christ and on to our stuff. Were in the midst of fighting the most important war in history with eternal consequences for people all around us.

Prayerfully submit spending decisions to the Lord - 1 Timothy 4 says, "For everything created by God is good, and nothing is to be rejected, if it is received with gratitude."

Romans 12 says, Do not conform to the pattern of this world, but be transformed by the renewing of your mind. Then you will be able to test and approve what Gods will ishis good, pleasing and perfect will.

Here are a couple of questions we answered from our callers on todays program:

I am refinancing my home with a cash out. I have about 21K in credit card debt. I wanted to pay off half of it and use the rest to make improvements on my home. What do you think?

I had 350K in credit card debt 10 years ago. I am now down to about 40K. I lost my job in May and I have been utilizing different deals to pay the minimum, but I am running out of ideas. Do you have any advice for me?

Ask your questions at (800) 525-7000 or email them [email protected]. Visit our website atMoneyWise.orgwhere you can connect with a MoneyWise Coach, purchase books, and even download free, helpful resources like the MoneyWise app.

Like and Follow us on Facebook atMoneyWise Mediafor videos and the very latest discussion!Remember that its your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking the Donate tab at the top of the page.

It’s no surprise that nearly 70 million Americans receive Social Security benefits.What is suprising is that millions of them are still working.While it is true that you can receive retirement benefits without actually retiring, Rob West and Steve Moore discuss some big changes that may surprise those who do still work while receiving benefits and those who are anticipating retiring in the near future.

1. Retirement Earnings Test Exemption Limits: The amount you can earn without having your Social Security benefits reduced.

In 2021, the amount you can earn before benefit reductions kick in is increasing from $18,240 to $18,960. If you make more than that amount, for every $2 you earn, $1 will be withheld from your benefits. This only applies if you haven’t reached your full retirement age.

If you start receiving Social Security benefits in the year you reach full retirement age, but you haven’t yet reached it when you begin receiving benefits, you’ll be allowed to earn up to earn up to $50,520 before your benefits are reduced which is about a $1,000 increase. Then, for every $3 you earn above that mount, your benefits will be reduced by $1.

Thankfully, once you reach full retirement age, even if you continue to work, the earnings test no longer applies and you can earn any amount without having your benefits reduced.

2. President Trump signed an executive order earlier in 2020 temporarilydeferringSocial Security or FICA taxes from Sep 1 to Dec 31, 2020.That deferral is coming to an end.

That’s a tax of 12.4% on payrolls.Roughly half of that is paid by employers.The other half is paid by workers. With that tax deferred, most workers essentially got a temporary raise.But without Congress, all the president could do is temporarilydeferthe tax meaning it still has to be paid by the companies and individuals.

The Social Security System will likely recoup that deferred tax incrementally over time not in a lump sum but as the law stands now, it will have to be repaid.That means that workers can expect their take home pay to be reduced back down to the amount they received before September 1st plus an additional temporary reduction until the deferred taxes are repaid.

So in the months ahead, look for ways to cut spending a bit so you can stay on budget and not have to tap into savings to meet your expenses.

Next, Rob and Steve answer listener questions at 800-525-7000 or by email at [email protected] including the following:

A caller and her husband have been faithful financially since becoming Christians in their early 20s.They have always been faithful tithers and generous givers and lived within their means.There have been several job losses over the years, but God has been faithful to provide for their needs.They are now able to retire early.

Caller shared a similar testimony about being taught Biblical financial principles at a young age.She learned to trust in God’s provision and has always tithed no matter what.She says when you tithe, you’re giving God what’s already His.It was never yours in the first place.

A couple is looking to save $5000 for an anniversary trip that will happen in two years.What’s the best way to save, and what’s the best place to put their money to meet that objective?(Rob mentioned higher-yield savings accounts atMarcus, Ally Bank, and Capital One 360.)

Caller’s step-father passed away a few months ago.Caller expects to receive a sizeable inheritance.She’s wondering what she should do with the money.Options she mentioned included getting completely debt free.She’s wondering if she should pay everything off, just pay off the car but continue making payments on the house, putting it in savings, etc.(Rob outlined the steps you should take when making decisions about unexpected income.)

75-year-old widow is trying to learn to manage her investments since her husband was always the one to do that.Rob talks about finding a godly financial advisor and making sure she ask plenty of question and stay involved in the management process rather than simply trusting the advisor to handle it all.(If you need to find a financial advisor, you can do so at MoneyWise.org.Just click on Find a CKA which stands for Certified Kingdom Advisor. )

You can ask your own questions at (800) 525-7000 or email them [email protected]. Visit our website atMoneyWise.orgwhere you can connect with a MoneyWise Coach, purchase books, and even download free, helpful resources like the MoneyWise app.

Like and Follow us on Facebook atMoneyWise Mediafor videos and the very latest discussion!Remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking the Donate tab at the top of the page.

To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29

To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29

Its no surprise that nearly 70 million Americans receive Social Security benefits.What is suprising is that millions of them are still working.While it is true that you can receive retirement benefits without actually retiring, Rob West and Steve Moore discuss some big changes that may surprise those who do still work while receiving benefits and those who are anticipating retiring in the near future.

1. Retirement Earnings Test Exemption Limits: The amount you can earn without having your Social Security benefits reduced.

In 2021, the amount you can earn before benefit reductions kick in is increasing from $18,240 to $18,960. If you make more than that amount, for every $2 you earn, $1 will be withheld from your benefits. This only applies if you havent reached your full retirement age.

If you start receiving Social Security benefits in the year you reach full retirement age, but you havent yet reached it when you begin receiving benefits, youll be allowed to earn up to earn up to $50,520 before your benefits are reduced which is about a $1,000 increase. Then, for every $3 you earn above that mount, your benefits will be reduced by $1.

Thankfully, once you reach full retirement age, even if you continue to work, the earnings test no longer applies and you can earn any amount without having your benefits reduced.

2. President Trump signed an executive order earlier in 2020 temporarilydeferringSocial Security or FICA taxes from Sep 1 to Dec 31, 2020.That deferral is coming to an end.

Thats a tax of 12.4% on payrolls.Roughly half of that is paid by employers.The other half is paid by workers. With that tax deferred, most workers essentially got a temporary raise.But without Congress, all the president could do is temporarilydeferthe tax meaning it still has to be paid by the companies and individuals.

The Social Security System will likely recoup that deferred tax incrementally over time not in a lump sum but as the law stands now, it will have to be repaid.That means that workers can expect their take home pay to be reduced back down to the amount they received before September 1st plus an additional temporary reduction until the deferred taxes are repaid.

So in the months ahead, look for ways to cut spending a bit so you can stay on budget and not have to tap into savings to meet your expenses.

Next, Rob and Steve answer listener questions at 800-525-7000 or by email at [email protected] including the following:

A caller and her husband have been faithful financially since becoming Christians in their early 20s.They have always been faithful tithers and generous givers and lived within their means.There have been several job losses over the years, but God has been faithful to provide for their needs.They are now able to retire early.

Caller shared a similar testimony about being taught Biblical financial principles at a young age.She learned to trust in Gods provision and has always tithed no matter what.She says when you tithe, youre giving God whats already His.It was never yours in the first place.

A couple is looking to save $5000 for an anniversary trip that will happen in two years.Whats the best way to save, and whats the best place to put their money to meet that objective?(Rob mentioned higher-yield savings accounts atMarcus, Ally Bank, and Capital One 360.)

Callers step-father passed away a few months ago.Caller expects to receive a sizeable inheritance.Shes wondering what she should do with the money.Options she mentioned included getting completely debt free.Shes wondering if she should pay everything off, just pay off the car but continue making payments on the house, putting it in savings, etc.(Rob outlined the steps you should take when making decisions about unexpected income.)

75-year-old widow is trying to learn to manage her investments since her husband was always the one to do that.Rob talks about finding a godly financial advisor and making sure she ask plenty of question and stay involved in the management process rather than simply trusting the advisor to handle it all.(If you need to find a financial advisor, you can do so at MoneyWise.org.Just click on Find a CKA which stands for Certified Kingdom Advisor. )

You can ask your own questions at (800) 525-7000 or email them [email protected]. Visit our website atMoneyWise.orgwhere you can connect with a MoneyWise Coach, purchase books, and even download free, helpful resources like the MoneyWise app.

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