Faith Based Investing

Principles Meet Profits: A Match Made in Heaven

The Two Go Hand in Hand
Profit without principles is ill-gained profit. Principles without sound financials often lead to weak profits. However,
principles with sound financials will help you maximize profits. The two go hand in hand. You should consider both your principles and the financial feasibility of the investment.

If you are privileged enough to be able to invest, shouldn’t you make sure that you are doing the best you can to maximize your money? At the same time, shouldn’t you make sure you are not profiting at the expense of others’
misfortunes?

I am not here to dictate to you what you should or should not invest in. My personal goal is to be pleasing to God and to maximize the wealth He has entrusted to me in a fashion that I believe will please Him. Your beliefs and your plan may be similar or immensely different from mine. My purpose is to challenge you and open your mind to an area you probably have not spent much time thinking about: where you invest!

Revelations
The revelations that I’ve had in my financial life did not come to me overnight. In fact, it took approximately two years for me to become fully aware, to truly embrace and wrap my hands around exactly what I needed to do. The first problem was conviction. I had a lot of questions and concerns that I needed to wrestle with. The second turning point came as a result of more tools becoming readily accessible.

There were quite a few hurdles to cross before I was able to take what was important to me and implement it in an easy and understandable fashion. It is one thing to want to do something; it is another to be able to do it. Those were my two challenges. Now, with advancements in technology and research, I have no excuses. And my eyes are open. I really have only two choices: take the time to understand what I own or pretend that it really doesn’t matter. For me, the choice is clear. As you learn more about faith-based investing and work through the many issues, please feel free to send me any questions! My hope is that the choice to incorporate your faith into your investment portfolio will be a clear choice for you.

Need more help figuring it out?
Read The Faith-Based Millionaire at www.jayperoni.com (foreword by the infamous Dan Miller)

I wrote this story several months ago and it never made its way into The Faith-Based Investor, my latest project. I’d love to hear your thoughts on the story:

“The Faithful Manager” by Jay Peroni, CFP (c) 2009
A Modern Take on The Parable of the Talents

The Calling
After his Sunday sermon at Calvary Christian Church, Dr. Thomas had a on his soul. He had felt this many times before as God led him to various callings. This was no different. He heard a faint voice, “It is time. Your work here is complete.” This seemingly came from nowhere yet he knew deep down that God was calling him away…again!

Dr. Thomas had done pretty well for himself. As a Pastor, teacher, and author for nearly thirty years, he was wealthy in many ways. He just had celebrated his forty-year wedding anniversary; he had four children, twelve grandchildren, two paid for homes, a clean bill of health, and nearly a million dollars in the bank. At age 65, he had been living a life of true financial freedom for years. He was able to donate all of his salary back to the church and live off of his investments. He even was donating book royalties to some of his deepest and dearest ministries. He always had a great ability to provide monetarily, but infrequently had the freedom to provide his time and expertise beyond his church’s walls.

Dr. Thomas and his wife Marjorie, for years, had longed to go on a long mission trip to a poverty stricken nation. They dreamed of living a life of simplicity with an ability to love, care for, and build up others. Because of their financial freedom and God’s timing, now it had become the time to leave the country and head on their mission to Africa.

Financial Freedom is Now!
The Thomas’s set aside enough money for living and helping in Africa, but needed someone to watch over their nest egg while they were away for the next decade. Because Dr. Thomas had invested his money in various businesses over the years, he never established an account with a financial professional before. He didn’t want to hand his money over to a stranger. He needed someone he could trust. He thought long and hard about who he knew that handled money. Dr. Thomas knew three people in his congregation who gave financial advice for a living.

First there was David Noble, an advisor who incorporated biblical principles in his practice. David was on the finance committee at the church, ran a non-profit debt management ministry program for hurting families, and owned a company called His Wealth Management. Over the years, several members of the congregation had praised David’s integrity, honesty, and wise approach. He helped quite a few members of the church with budgeting, investing, and gifting more back to God’s work.

Next, there was Max Taylor, a deacon at the church and a long-time friend of Dr. Thomas. He and Max golfed together twice a week, shared bible study together, and visited with each others’ families frequently. He trusted Max like a true brother. Max had been a Christian most of his adult life and ran a local three-generational financial planning office in town. Max and his brother Tom, along with their three sons and a grandson ran and operated Taylor Wealth Management, LLC.

Lastly, there was Harry Tucker was also a good friend of Dr. Thomas. He ran an insurance agency in town that specialized in conservative strategies for many local seniors. Tucker insurance handled estate planning, life insurance, long-term care, and fixed annuities.

As a pastor, the choice of who to entrust his life savings was difficult. Should he let one person handle it all? Or maybe split it up? Dr. Thomas and Marjorie went back and forth with who should handle their family’s finances. They finally made a decision to meet with all three financial advisors.

After meeting with each advisor and gaining suggestions, Dr & Mrs. Thomas decided to split their assets up as follows:

To David Noble, they entrusted $500,000.
To Max Taylor, they entrusted $200,000.
To Harry Tucker, they entrusted $100,000.

A Decade Away
For the next ten years Dr. Thomas and his wife wrote frequently to their friends in America, yet never had much opportunity to call or speak to their advisors. A decade went by and Dr. Thomas and his wife returned as planned. After getting back into America, Dr. Thomas and his wife needed to get their finances back in order. They arranged meetings with each of their three advisors.

First, they met with David. David had invested the Thomas portfolio in a portfolio of stocks and bonds. The portfolio was now worth over $1,000,000. It had more than doubled since the Thomas’s left. David explained, “Not only was I able to more than double the money you entrusted to me, I invested the money according to your faith, values, and beliefs. I made sure you did not own any investments that you would not be proud to own. I purposely avoided companies involved in social issues important to you like tobacco, alcohol, and gambling. I also avoided investing in companies that violated moral issues important to you like abortion, pornography, stem cell research, cloning, and companies promoting homosexuality.” The Thomas’s were very proud and honored by David’s job as a faithful manager!

Next, they met with Max. Max was very happy to report that he doubled their money using mutual funds that invested in stocks and bonds. “I turned your $200,000 into well over $400,000. I invested in things that would maximize your profits.” Now the Thomas’s were quite pleased with the returns Max had achieved for them. However upon further reflection, they found that through their mutual fund investments they owned tobacco companies, companies engaged in stem cell research, companies distributing pornography, and some of the world’s leading pro-abortion companies. The Thomas’s were saddened by their friend’s lack of awareness when it came to matching their investments with their values.

Lastly, they met with Harry Tucker. Harry was happy to report that he tucked
their investments into something safe and secure. Harry said, “I didn’t want your principal fluctuating while you were gone. The stock market goes up and down, you know. There’s way too much risk.” I have turned your $100,000 into $130,000 over the last 10 years. You didn’t lose a thing at any point during the past 10 years.” The Thomas’s were also saddened as Harry had invested their money so conservatively that it had not even kept up with inflation and taxes. Though their investments gained $30,000 in value on paper, when they accounted for taxes and inflation, they were disappointed to find out they lost money.

Now what if there was a fourth money manager?
What if there were a money manager who knew the Thomas’s values? On moral and social issues, he understood exactly where the Thomas’s stood. There was no doubt in the manager’s mind what would please or upset Dr. Thomas and his wife…yet he chose to look the other way. He knew that he had the ability to uphold the Thomas’s values yet he knowingly chose to not do anything about it. How would that make them feel? Betrayed? Or, maybe angry? At the very least the Thomas’s would question the heart of this manager. Did he care about my wishes or that of his own? I believe God is asking that very same question to you: Do you care about His will or do you choose what makes you happy instead. God indeed wants us to multiply His money, but He wants us to do it in a fashion that incorporates biblical principles.

This modern day version of the “Parable of the Talents” was written to help you view your finances in a new, exciting, and unique manner. Hopefully some of these questions will challenge your thinking the way it challenged me. The words I have written were inspired because it took much time for me to truly understand
the moral responsibility that comes with handling the affairs of our God. As an individual, you make investment choices every day. You choose how you invest (spend) your time; you choose how you invest (use) your talents, and certainly how you invest (save, spend, lend, or donate) your money. But is your money really yours? Who are you really managing your money for? If God were directly investing his money, would He care more about the returns or the source of the profits? This book will examine your heart and motivation with money. “Because where your treasure is your heart lies also.” Step by step we will examine how money choices can affect your ability to be a faithful manager with the time, talent, and treasure God has put you in charge of.

Think about this:
*Each day has 1,440 minutes: How do you use your time?
*You possess certain abilities and unique gifts that God has given to you: How do you use these gifts?
*God has entrusted you with ability to earn money: How do you spend, give, and invest the money he has provided you?

Without examining your priorities and who you are as a person, it is difficult to change course. Things may be going well for you, you may be one paycheck away from disaster, or you may be in the middle of a financial storm. Wherever you are in your financial life, there is hope that you can grow closer to God and manage money in a way that pleases Him.

The Examination
Self analysis is often uncomfortable, but sometimes we need discomfort in order to grow. In The Faith-Based Investor, I help people like you examine their beliefs, values, and morals. I take a hard look at our culture and help you navigate a course that will allow you to achieve the gains that you seek with your family’s finances without sacrificing your faith in the process.

Setting the stimulus package aside, what can the average American do?
While President Obama’s stimulus plan may or may not aid the U.S. economy in future months, some economists are seeing notable potential in the private sector. There are little things we may do, in unison as Americans, that could help heal regional and local economies.

1. Start up a business.
Nothing huge, perhaps, but a cottage industry outpost of your own: a way to make some extra money, or a new way to capitalize on a new opportunity. Where do you learn to start a business? From a mentor, friend or parent. From free or low-cost workshops held in your community. Don’t discount the relevant information you might find online or at the library. If you think you have a good idea in mind, why not act on it and do your part to stimulate the economy?

2. Spend your dollars locally.
Frequent local stores, and remember that this goes beyond mere retail shopping. If you have a need – if you need a service provider, or a vendor – hire a local business that needs the work. Your Chamber of Commerce, your local newspaper and the local chapter of the Better Business Bureau can alert you to worthy local businesses you may not have known about.

3. Don’t cut back unnecessarily; just spend your dollars wisely.
Set a budget and try to abide by it. Go out and do what you love to do, but keep moderation in mind – do it a little less frequently, or a little less expensively.

4. Buy American.
This is the time to do it. Why turn away from the American worker and business owner now? Look at labels and look online for U.S.-based firms.

5. Invest.
Some companies have held up well in the recession, and shares of many other companies are priced quite low right now – so why not take advantage of the opportunities?

6. Give More
Now is the time to trust God more not less. Yet given is down significantly. Churches, ministries, and local non-profits are hurting. Often they are the ones that provide all kinds of assitance to the poor, homeless, and those out of work.

7. Finally, stay positive.
A recession is temporary by definition. At some point, perhaps sooner than we all think, the economy will take a turn for the better. If you need help coping with the recession, by all means ask for it – people want to help you. Surround yourself with positive people and seek to sharpen your personal skills. If you bring a good attitude, deliver a valuable service or product, you are better positioned to ride out the storm!

Where is the Substance?
Cotton candy as we know it is a light, very sweet candy of threaded sugar, often tinted with food coloring and twirled onto a stick. But when you look closer at it, it has no nutritional value what so ever. It looks good, tastes good, but lacks substance!

For many who call themselves Christian, they talk the talk. They appear as if they are following God’s Word, yet like cotton candy, they lack substance. They don’t act on faith… They don’t include their faith when they making decisions on how they earn income, how they spend money, where and if they donate money, and when they invest.
James said it well when he spoke: “What good is it, dear brothers and sisters, if you say you have faith but don’t show it by your actions? Can that kind of faith save anyone?” (James 2:14 New Living Translation)

What the World Needs Now

Substance has to be a part of your walk with Christ. Make Him a part of all areas of your life: spiritual, financial, mental, and physical health. In order to have more substance, here are three things the world is desperately needing:

1) Those willing to live authentically : Are you willing to live for Him? Are you willing to be the person God is calling you to be? Will you live a bold life full of faith or will you let fear hold you back?

2) Those who will fight courageously : Are you willing to stand for your faith? Stand up for your morals, values, and beliefs? Put your money where your morals are. Join the faith-based investing community. Become financially free so you can help more of God’s people. Fight the battle against evil!

3) Those who will love sacrificially: Instead of fighting evil with evil, will you fight with love? Are you willing to shine for Christ? Are you willing to put on your coat of armor each day and fight for your neighbor, fight for your friends, co-workers, and family? Do you realize the only way people see Christ on earth is through His people. Will your faith be a testimony or a turnoff for people?

This world needs more people like you! People willing to walk in faith, do business His way, stay true to His word, fight for His principles, and persevere for Him! He paid the ultimate price for us, what are you willing to do for Him? I’m sure it’s not living the life of a “cotton candy Christian”!

How will you serve Him today?

American Revolution
When a revolution begins, there is typically:

*1/3 who are passionate and willing to fight!
*1/3 who don’t care and won’t do a thing!
*1/3 who resist and fight change.

Which 1/3 are you? Are you tired of the reckless spending being done by those who call themselves politicians? Are you concerned about your children and grandchildren’s future? Out of control spending is placing our deficit into unchartered waters.

Fight back! Send a message to our politicians that what they are doing is un-American! Is it time for another Tea Party?

T = Taxed
E = Enough
A = Already!

Check out this video, if it doesn’t get you fired up, check your pulse!

Sunday Morning Christian, Monday Morning Hypocrite!
He walked into the office, put on his disguise, and faced another Monday morning – alone at his computer. Church was 27 hours ago so he could do all his heart desired today. “I was good yesterday”, he thought. “God will forgive me”, he moaned. What is one more sin? After all, it is so hard being good all the time, why even try?

He seldom read the Bible. He seldom prayed. Yet, he was quick to say he was a Christian. He refused to use profanity, but was trapped in sin. He talked a good talk, but where was the walk? Where was his relationship with His Creator? He saw the poor, the needy, the defenseless – yet he spoke and did nothing. He was pro-life yet supported the pro-abortion industry. He was one person at church, another at home, with his family, friends and co-workers. Around other Christians, he seemed to have it all, yet inside he was broken and alone. He made hundreds of thousands of dollars a year but gave little away. He was quite successful in the eyes of the world, but a failure to his faith! He longed to change, but did nothing. Day after day he lived a lie. Worst of all, he even believed his own lies. What a hypocrite!

The Ultimate Hypocrite
A glance at the dictionary confirms that a hypocrite is someone who “pretends to be better than he really is or to be pious, virtuous without really being so.” In other words, a hypocrite is simply someone who says one thing and does the opposite. When you desire to have the best of both worlds, you are doomed to fail! Many go to Church on Sunday and live apart from God the rest of the week.

“Doing the right thing” shouldn’t mean satisfying our own personal desires. It’s easy to do make good moral choices when others are looking, but what about when you’re alone and God is the only one watching? The mantra of the world is “if it feels good, do it!” Many underestimate the seduction and temptations of sin. They believe they can defeat sin alone. We all live hypocritical lives to varying degrees. In our hearts, we know when something is morally wrong, but we do it anyway because it feels good or is convenient.

How often do we see high-profile public leaders caught in a life of hypocrisy? The mighty fall! If it can happen to them, it can happen to anyone. Do you know the number reason people fall? It has to do with a lack of accountability – a lack of someone checking up on you and keeping you within the “safe zone”. God has given us an instruction manual and when we stay within its parameters we can succeed, yet when we stray from His intentions, it is then that all falls apart.

A Personal Reflection.
I didn’t like the man I saw in the mirror! You see, the man at the beginning of the story was me seven years ago. Though I accepted Christ in my teens, I fell away from my faith for so long! I had it all, yet was not walking a good walk. Sure I could talk the talk, but my life was in ruins. Making money was easy, but I was such a hypocrite! I wasted much of it away on my selfish desires – houses, cars, worldly treasures, yet did little to advance His kingdom! Money was my god. Sin was my desire and emptiness was my result.

The turnaround came only when I chose to fully surrender to Him – when I made a conscious decision to follow Him and turn things around. He waited patiently for me. My late uncle Bob used to say it best: “You can leave God, but He will never leave you”. We are so lucky to serve a God so loving, so full of mercy and grace. I am so grateful He chooses to look past our imperfections, loves us even when we don’t love Him back, and forgives us when we fall away. Like the story of the prodigal son, God is always there with arms wide open, waiting patiently for us to grow deeper with Him. He is my motivation, my desire, and my hope! I can change through Him! Today, I try to be more open, be more transparent, and place my faith at the center of all I do. I know I am far from perfect and still struggle with many facets of life, but being aware of where I was, having learned to despise who I used to be helps me look for ways to keep growing closer to him.

Thanks for listening!
Jay

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